Tracking the progress of Rwanda’s Ejo Heza saving scheme

Rwanda's Ejo Heza saving scheme, launched by the government in December 2018, is making significant strides in improving the welfare of workers in the informal sector. The scheme, aimed at increasing financial inclusion and promoting a savings culture among Rwandans, has seen substantial progress in the past two years. Dan Rwiyamirira, a monitoring evaluation and planning expert at the Rwanda Social Security Board, provided an update on the scheme's performance during an interview with CNBC Africa. Initially, less than 7% of the Rwandan workforce was covered by state pension or social security arrangements, leaving over 92% without any form of pension coverage. This gap led to the introduction of the voluntary saving scheme known as Ejo Heza. Since its launch, the scheme has onboarded 700 members, with 500 of them actively saving, amounting to nearly 6 billion Rwandan francs. Rwiyamirira highlighted the positive impact of initiatives like Ejo Heza in changing the savings culture in the country and increasing awareness among the population. The scheme has witnessed a gradual increase in participation, with significant growth in savings mobilization and membership numbers over the past few years. By the first quarter of the financial year 2021, Ejo Heza had accumulated close to 1.5 billion Rwandan francs, indicating a positive response from both new and existing savers. The success of Ejo Heza is also reflected in the overall increase in financial inclusion among Rwandans, with recent reports showing a rise from 80% to 93% in just four years. Rwiyamirira emphasized that Ejo Heza, along with other government initiatives, plays a crucial role in achieving the goal of 100% financial inclusion by 2024. To further enhance participation in the program, various strategies have been implemented. Due to the limitations imposed by the COVID-19 pandemic, the focus has shifted towards leveraging media platforms for awareness campaigns. Radio shows, TV programs, and newspaper advertisements have been utilized to increase visibility and reach a wider audience. Collaboration with the private sector, particularly engaging employers and employees, has proven to be effective in expanding the scheme's reach within the informal sector. Additionally, partnerships with central and local government authorities have been instrumental in promoting Ejo Heza and encouraging more people to save for their long-term financial security. The scheme also caters to formal employees by offering them a supplementary savings option, alongside their existing pension plans. Despite the challenges posed by the ongoing global health crisis, Ejo Heza remains committed to fostering a savings culture and improving financial well-being for all Rwandans.