Social Security @60: SSNIT Unveils Massive Multi-Sectoral Investment Strategy

Social Security and National Insurance Trust has revealed strategic investments propel Ghana’s economic growth

In a comprehensive strategic overview today, during the official launch of social Security @60 in Accra, the Director-General of Social Security and National Insurance Trust (SSNIT), Mr. Kwesi Afreh Biney highlighted the significant contributions across multiple sectors, demonstrating robust economic engagement.

“Throughout Ghana, we offer 4,250 beds across six university campuses,” Mr. Kwesi Afreh Biney stated, emphasizing their commitment to educational infrastructure.

According to him, the company’s investments span critical national development areas, including real estate, energy, and financial services.

“We are currently contributing 126 megawatts to Ghana’s National Grid, and we are on track in doubling that capacity before the end of this year,” He noted.

In the financial sector, He said, the company has made substantial investments, holding “shares in 22 of the 36 listed companies on the Ghana Stock Exchange” and supporting eight commercial banks.

A notable highlight was their commitment to youth development, exemplified by the Bokom Boxing Arena, which the Ghana Boxing Authority has praised for its significant support.

“We assure you that [the Labadi Beach Hotel] will not be sold,” the Director-General emphasized, underscoring the company’s long-term investment strategy and confidence in Ghana’s economic potential.

The strategic overview showcased a comprehensive approach to national development, positioning the company as a key player in Ghana’s economic landscape.

The origin of Social Security:

Ghana’s first President, Dr. Kwame Nkrumah, while opening the Trade Union Hall in Accra in 1960, announced plans to establish a National Pensions and Insurance Fund to manage the Pension and Provident Fund of all workers irrespective of their employers.

Subsequently, a committee chaired by then Managing Director of the Ghana Commercial Bank (GCB), Mr. T.O. Asare, was tasked to look into the possibility of establishing a National Pension and Insurance Scheme for workers. The Committee was assisted by an International Labour Organisation (ILO) expert on Social Security, Mr. A. Zelenka.

Prior to the setting up of the committee, private schemes had been established to develop a simple social security system for urban wage earners.

On 17th February 1965, the Parliament of the First Republic, passed the Social Security Act, 1965 (Act 279), to establish a Social Security Fund to provide for contributors and benefits under Superannuation (Old Age), Invalidity and Survivors Benefits among others. Thus, a Social Security Scheme of a national dimension, was for the first time, provided for workers resulting in the improvement of livelihoods.

Early Administration:

The administration of the Fund, was under the Department of Pensions and National Insurance. However, the functions were split and assigned to two bodies. The then State Insurance Corporation (SIC), supervised the Inspectorate and Operational Divisions while the Department of Pensions under the Ministry of Finance, was in charge of Policy and General Administration. Mr. C.K.F. Adapoe, was the first Chief Administrator of the Social Security Fund Administration and was assisted in the day-to-day administration by an initial staff numbering 37 in 1965.

Birth of SSNIT

In November 1972, NRC Decree 127, established the Social Security and National Insurance Trust (SSNIT) as an autonomous body to administer the Social Security Scheme.

Ghana became a member of the International Social Security Association (ISSA), after converting the Provident Fund into a Pension Scheme in 1991. ISSA is the world’s leading international organisation that brings together national social security administrations and agencies.

The Chief Administrator’s title changed to Director-General in compliance with ISSA regulations.