MEFMI / World Bank Create Awareness on Approaches To Counter Impact of COVID-19  on Pensions

The crisis arising from the COVID-19 pandemic has tested the resilience of the financial sector across the world, including the pension sector. The pandemic has adversely affected the labour markets as employers opt to close operations or cut down on staffing levels. This has created immediate funding challenges for pension funds thereby putting their long term solvency at risk. In the MEFMI region where pension penetration is already low and pressure for early access has been increasing over the years, these challenges can threaten the sustainability of the pension system.

As part of its efforts to assist the member countries to counter the crisis, MEFMI in partnership with the World Bank hosted a webinar on 13 October 2020 to discuss ways in which pensions systems can navigate the crisis. The webinar was based on a World Bank publication titled “Pension Systems in East Africa: A Deep Dive” co-authored by several pension experts including Ms. Fiona Stewart, Mr. Japheth Katto, Ms. Miriam Musaali, Ms. Patricia Kiwanuka, Dr. Irene Isaka, Mr Joseph Lutwama and Dr Winifred Kiryabwire who were the resource persons for the webinar. The webinar discussed how pensions systems can preserve value and balance access and adequacy during the period of the crisis. It also delved into supervisory interventions that can be implemented by pension regulators and supervisors in the region to mitigate the adverse impact of the crisis while fostering the sustainability and efficiency of pensions systems.

The webinar, which targeted middle-level and senior pension supervisors as well as senior to top executives in pension fund management companies, enhanced the participants’ knowledge of the various approaches that can safeguard pension systems and allow them to sustainably play their economic and social roles of mobilizing long-term capital and alleviating poverty of the elderly thus reducing pressure on government welfare systems amid the pandemic.

A total of 54 participants  from 13 countries, including 11 MEFMI member countries (list them here, in brackets) attended  the webinar. The majority of the participants were from institutions in MEFMI member countries, while the rest were from the private sector, technical cooperating partners, and independent consultants.

Over and above this webinar, MEFMI is also supporting the member countries to strengthen pension regulation by offering an e-learning course on Pensions Regulation and Pandemics from 5 October to 20 November 2020.

Prepared by Noel Mahombera