Rwanda Case Study - How Incentives Can Boost Pensions For Informal Sector Workers

Overview

This case study examines Rwanda’s Ejo Heza Long-Term Savings Scheme, launched in 2018 to expand pension coverage among informal workers. Managed by the Rwanda Social Security Board, the scheme integrates with existing pension administration systems and digital government databases to allow simple registration and mobile-based contributions. Ejo Heza has achieved one of the highest participation rates among informal pension schemes globally, reaching over three million members, around 73% of employment, with the majority of participants from the informal sector. The programme initially combined matching contributions, life and funeral insurance benefits, and targeted incentives for low-income savers.

Ejo Heza highlights the potential of innovative financial incentives. Beyond financial incentives, Rwanda’s experience highlights the importance of non-financial incentives such as low-cost administration, strong public trust in government institutions, extensive marketing through cooperatives and local networks, and high mobile money penetration in achieving large-scale pension participation.