People’s Pension Trust, an Enviu venture, has partnered with Vodafone Ghana and Dusk Capital! Together they have started a mobile money enabled pension scheme. This means over 2.5 million subscribers of Vodafone can now start saving towards their retirement using simply their phone.
Low accessibility to pension products for informal sector
“Dozens of countries around the world lack a social security net for the informal sector [without an employer or registration of income], which often comprises around 70 to 80% of those economies,” says Samuel Waterberg, CEO of People’s Pension Trust. “In Ghana alone, 85% of the working population falls in the informal sector. Currently pension products for these groups are very limited.”
Accessibility is one of the major issues, as the majority of the workers in the informal sector do not have a bank account. And the transaction cost in paying for your pension contribution is relatively high.
“People’s Pension Trust offers a pension product for which people can voluntarily save daily, weekly or monthly, with flexible contribution amounts.” And this can now be done using their mobile phones.
Mobile money replaces bank accounts
The penetration of mobile phones in Africa has been sky rocketing over the past decade. “In Ghana, there are more mobile phones than human beings. More than 95% of the people have access to a mobile phone,” explains Samuel. “Mobile money has replaced the bank account. People use mobile money to pay for services and to cash out.”
“This partnership is the first of its sort, where a pension company partners with a telco giant to launch a mobile money enabled pension scheme. This means that everyone in Ghana, irrespective of location, can now register and contribute tot their pension.”
People’s Pension Trust, one of its kind
So why did Vodafone and Dusk Capital want to partner with People’s Pension Trust? Because Vodafone and Dusk Capital were looking for a partner with a track record in the informal sector, credibility, and the will power to serve the underprivileged. People’s Pension Trust is one of its kind.
This initiative is one of the many interventions People’s Pension Trust has embarked on to ensure that it fulfills its vision of providing a pension cover for at least 500,000 Ghanaians working in the informal sector in the next five years. It is set to roll out a lot more of such unique initiatives in the coming weeks.