Social protection policy: responses to older people’s needs in Zanzibar

Zanzibar runs a system of contributory pensions (the ZSSF) covering those employed in the public and formal sectors.  But overall, only about 40 per cent of older people receive any form of cash payment in their old age. Changing family structures, migration and general poverty have eroded traditional patterns of support, and even where support exists, it is normally inadequate.

Based on a study to examine the needs of older people, this report focuses on social protection in the Zanzibar archipelago, and presents policy recommendations of expert consultants on social protection and health, making links between the two areas where possible. It also includes examples of international experience on the positive impacts of cash transfers and pensions.

Recommendations include:

• a universal pension scheme (which could be called an older persons grant) would be the most effective social protection instrument for Zanzibar. It would provide the best means of alleviating
  poverty amongst all older people, and it is also likely to be the most popular intervention and the easiest to implement
• Given the retirement age and life expectancy in Zanzibar, the pension should benefit all citizens over 60 years of age. In terms of affordability, HelpAge International Tanzania suggests a starting amount of 11,500 Shillings per month equivalent to 20 per cent GDP per capita. This should be indexed to inflation and can be increased to respond to market changes in the future
• registration for the universal pension scheme should take place in the form of events at local centres. These should be at an accessible distance for older people to travel. Older people should be deemed eligible on the basis of the age on their national ID cards or in exceptional circumstances, on the basis of a community consultation
• payment mechanisms for a universal social pension: There are two clear options for payment mechanisms that are available in Zanzibar: Mobile banking and payment to cell phones. Both  payment mechanisms are potentially feasible for Zanzibar. A further more detailed study should be carried out to examine the full cost benefits of the options including pilot testing of the different mechanisms with older people
• social welfare officers should be responsible for the ongoing addition and removal of people from the pension scheme. They will need to have access to a local registry which would in turn feed into a central registry. Depending on the payment mechanism, the registry could be paper-based or electronic. A small funeral benefit should also be put in place to encourage reporting of deaths
• if the government of Zanzibar approves the concept of a universal pension scheme, a full assessment of potential donors and funding streams should be immediately carried out