Abstract:
This study analyzed factors / causes on low coverage of social security schemes in Tanzania with special focus on LAPF. The study is arranged in five chapters started by Problem setting followed by literature review, methodology, presentation and discussion of the findings and last chapter include summary, conclusion, limitations and recommendations.
This study involved 55 respondents that include LAPF officers, leaders /officers in PMO – RALG office, LAPF members and non SSC members; also review of LAPF documents was done. Data analyzed both quantitatively and qualitatively. And data collection methods include interview, questionnaire and observation. Secondary data was also included in the study. Social security coverage in Tanzania is statutory afforded to those who are employed in the formal sector and excluding more than 90% working in the informal sector.
It is revealed that, the rate of citizens covered by SSC were very minimal due to fact that the existing schemes set to cover only formal sector and ignoring informal sectors. The reasons includes, negative perception of the citizens in the informal sector towards SSC, low level of awareness of the citizens in the informal economy toward SSC, low income to many of citizens in the informal sector which was not enough to cover cost of living and saving, lack of appropriate approaches in registration of new members to LAPF as the existing approaches target to register member in formal sector and ignore informal sector and unsatisfied government’s positive measure/effort to rectify the situation.
It was recommended that SSRA has to create the Informal Sector Fund (SIS) or direct all existing SSC to have informal Sector Fund within, the scheme that aims to help both the new participants and the economy as a whole. Furthermore, LAPF/SSC has to adjust its approaches used in registration of new members which currently targeting only employees who employed in formal sector and ignore employees from informal sector.
