Ecobank Ghana and People’s Pension Trust, have launched a new digital-based pension scheme that allows both formal and informal sector workers the opportunity of contributing towards a comfortable retirement on their mobile handsets.
The product, which is available on the Ecobank Mobile App, is primarily targeted at the millions of informal sector workers, who constitute about 71 per cent of Ghana’s workforce but are largely not on any pension scheme.
Mr Daniel Sackey, Managing Director of Ecobank Ghana, speaking at an event to sign the partnership deal said the new partnership was a testimony of bank’s commitment to using digital technology to drive financial inclusion and create value for Ghanaians, especially the largely unserved and underserved informal sector.
He said the move was a two-edged sword of ensuring financial inclusion to secure the long-term welfare of informal sector workers, and also unlocking and redirecting capital for long-term national development.
Mr Sackey recalled several other strategic partnerships Ecobank had entered into this year to make life better for Ghanaians while raising capital for national development citing the ground-breaking Pensions Back Mortgage Scheme with Enterprise Trustees, the Auto Loan Scheme with some automobile companies and the SMEs loan scheme with Proparco.
Mr Saqib Nazir, Chief Executive Officer People’s Pension said Ghana’s informal sector workers, who were largely underserved with financial services, formed part of the 400 to 500 million in West Africa and the two billion people globally who need financial services extended to them.
He said whereas the risk of extending financial services to the informal sector was high, there was also a huge potential of funds to be mobilised from that sector for national development when they were financially included while creating value and security for the contributors.
He said that efforts of financially including the informal sector have been a difficult one over the years, but strategic partnerships such as the one between Ecobank and People’s Pension, presented flexible and innovative pension that should enable informal sector workers to easily get on board and secure a future for themselves.
"Through this partnership, both existing and new customers of People’s Pension and Ecobank can be reached with pension services, thus helping to transform individual lives for a better tomorrow. This will have a ripple effect that will drive improvement in the economy," he said.
He described the scheme as a game-changer and urged Ghanaians to sign on and encourage others to also sign on and secure their future.