Social programs in sub-Saharan Africa

Social protection in sub-Saharan Africa tends not to be very developed and yet the growth of some of the region's economies and concerted attempts to tackle poverty mean that this situation may change considerably in the future.

Data from the International Labour Office’s 2014/15 World Social Protection Report[3] estimates that currently only 16.9% of older people in sub-Saharan Africa receive an old age pension.

In part, this is due to the unique circumstances in Africa including demographics (young population), a large informal employment sector, migration with limited pension portability, and dependency on government finances.

A number of African countries including South Africa, Namibia, Mauritius and Lesotho[4] have used non-contributory universal pensions as a foundation for broad social security coverage.

Research suggests transmission via a basic retirement income has the ability to significantly alleviate poverty and directly impact socioeconomic factors.

The second trend has been a move from unfunded to funded solutions, and DB to DC schemes, albeit at a slower pace than in developed countries.

This is a broad reflection of the increased pressure on government budgets, and the unsustainable fiscal burden that PAYG pension systems create.

Nigeria for example was the first on the continent to explore the Chilean-style individual-funded accounts[5] and also cites Mexico as a country they examined as part of their reform journey.

Extending and ensuring an adequate level of social security remains a continually evolving process as governments and regulators across the world adapt to changes in the environment and financial markets, no less so in Africa.

[10] One particularly vulnerable group in Equatorial Guinea are the under-18s, who make up 50% of the population and whose poor levels of nutrition and education risk the country's future stability and economic growth.

Low demand, as well as poor supply, of public services is also important in understanding the limits to social protection and poverty relief in Equatorial Guinea.

A key cause is that children are involved in child labor, in 2001, a UNICEF study showed that 51% of boys and 58% of girls worked during school hours.

[10] Mali has made significant economic progress (on average 5% a year between 1994 and 2006) considering a series of adverse economic shocks (such as drought) and has made some progress on reducing poverty and poverty related indicators, yet poverty remains high at 59.2% in 2006 and as in many sub-Saharan African countries, children make up a high proportion of the population - 54% in the case of Mali[11] Mali’s National Social Protection Policy recognises the multiple dimensions of social protection that correspond to a range of social, economic, health and environmental risks.

[11] However, criticisms remain that the main focus of the GPRSP 2007–2011 is the other two pillars: ‘development of infrastructure in the productive sector’ and ‘consolidation of structural reforms’.

[18] Social welfare programmes in South Africa include cash assistance, unemployment insurance, medical provisions, and housing subsidies.