Investments of social security funds: a need for common guidelines in Tanzania

The current Social Security System seems to have many shortcomings due to lack of common guidelines for investments of social security funds in the country. The Social Security Sector in Tanzania is fragmented and the Social Security Funds are placed under different ministries with different operational and administrative rules and procedures. In radiance of the potential need of common guidelines for investments of social security funds in the country, this research examines whether there is rationale justifying its establishment of the same guidelines in Tanzania. It also highlights an overview of Social Security Schemes in Tanzania, their traditional investments, draws conclusions and recommendations on the efficacy of establishment of common guidelines for investments of social security funds in Tanzania. Specific objectives of this study are to assess the need of common guidelines for investments of social security funds in the country; identification of opinions of Social Security Stakeholders on the need of the same common guidelines. In relation to the need of common guidelines for investments of social security funds in Tanzania, findings from the field revealed that 91.0% of respondents agreed that there is a need of common guidelines for investments of social security funds in the country, 6.7 % disagreed while only 2.2% were unable to make decision. In its concluding remarks, the study urges that, lack of common guideline for investments of social security funds in Tanzania, is a significant problem which has to be addressed properly before it cause stringent and intricate implications on provision of Social Security protection to the Tanzanians by the Social Security Institutions and other players in the Social Security Sector.