Ecobank Ghana Limited has signed a partnership agreement with People’s Pensions Trust to provide pension services to workers in the informal sector.
In view of the terms of the agreement, Ecobank will use its numerous banking outlets to help People’s Pensions Trust to mobilize contributions from workers within the informal sectors of the economy.
Mr. Dan Sackey, the Managing Director (MD) of Ecobank Ghana Limited, disclosed that the partnership will help the bank to push forward with its digitalization agenda.
“Digitalisation is top on our [Ecobank] agenda, and we [bank] believe that this partnership which targets the informal sector, will support our agenda in digitalizing the pension collection process in the informal sector and promoting financial inclusion within Ghana.”
Mr. Dan Sackey
Ecobank’s MD further disclosed that, “this is an exciting time to be associated with Ecobank Ghana Ltd., as we [bank] rollout products and partnerships aimed at providing additional convenience to our cherished customers”.
Mr. Sackey revealed that, there are numerous opportunities within the pensions sub-sector, and “we [bank] are excited to partner with the various stakeholders in the sector. You are in no doubt, aware of our pension backed mortgages”.
Besides the bank’s pension backed mortgages, the bank now offers effective and digitalized solutions for the collection of pension contribution within the informal sector, Mr. Sackey disclosed.
In the bank’s quest to contribute its quota to national development, the bank will “need to develop the informal pensions sector to help mobilize long-term funds and to secure the welfare of our informal sector workers”, Mr Sackey revealed.
People’s Pensions Trust’s focus
Mr. Saqib Nazir, the Chief Executive Officer (CEO) of People’s Pensions Trust, stated that his outfit is focused on innovative and flexible pension schemes for Ghanaians across divers spectrums of employment.
People’s Pensions Trust’s CEO expressed that, the partnership with Ecobank will foster a strategic collaboration between the two (2) entities. This, he disclosed, will make “pensions accessible to everyone, particularly workers in the informal sector who are generally underserved”.
The partnership, Mr. Nazir explained, is purposed to provide existing and potential customers of People’s Pensions Trust and Ecobank, with pension schemes tailored to transform the lives of individuals who subscribe to it.
Mr. Nazir added that, the partnership will improve both banking and pension sub-sectors and will help in Ghana’s economic development in the long run.
Covid-19 and pensions contribution
According to the International Finance Corporation (IFC), the emergence of the novel coronavirus inspired the need to increase contributions across all sectors of the economy, especially with individuals within the informal sector.
“The crisis [Covid-19] has underscored the need to give greater priority going forward to increasing the level of longer-term domestic savings in African economies and providing for more extensive participation, including those in the informal sector.
“The crisis [Covid-19] has also elevated the broader policy discussion on determining the best means of tapping into pools of domestic capital, where they exist, which will be important to a sustainable economic recovery”.
International Finance Corporation (IFC)
Also, according to the Organization for Economic Co-operation and Development (OECD), “The shocks from the global health and economic crisis will likely keep economic growth, interest rates and returns ‘low long’ into the future”. This will likely put many people at risk of not being able to save enough for retirement.
Hence, the need for Governments to enact prudent measures to improve the sustainability and resilience of pension arrangements in response to COVID-19, OECD disclosed.
These measures, OECD revealed, include extending job-retention schemes and unemployment benefits that allow workers to keep accruing retirement benefit entitlements, or providing flexibility around pension plans.
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