Improving Synergies between Social Protection and Public Finance Management

Improving the social protection system for Ethiopia through a sustainable financing strategy

Ethiopia 31.05.2023

Description

 

The 2014 National Social Protection Policy (NSPP) and the 2016 National Social Protection Strategy (NSPS) serve as policy frameworks in the provision of social protection and the expansion of social protection floors in Ethiopia. MoLSA and Regional BoLSAs take the responsibility to coordinate the implementation of the social protection policy and strategy by establishing Federal and Regional Social protection Councils and focal units/persons. The NSPP and NSPS have 5 focus areas, namely: 1) promote productive safety nets; 2) promote employment opportunities and improve livelihoods; 3) promote social insurance; 4) increase equitable access to social services; 5) provide legal protection and support for citizens exposed to abuse, exploitation and violence.

 

Concerning the social protection coverage, the Productive Safety Net Programmed (PSNP) has about 8.6 million beneficiaries (8 million Rural PSNP and 600 thousand Urban PSNP). With respect to contributory social insurance, there are about 700,000 pensioners served by the Public Servants’ Social Security Agency (PSSSA). The Private Organizations’ Employees Social Security Agency (POESSA) which was established in 2011 has 1.6 million registered contributors from about 200 companies. The recently introduced Community Based Health Insurance (CBHI) scheme covers 20 million participants. ).

 

Despite the aforementioned arrangements social protections coverage is very low in the country and does not cover informal economy work force. Challenges in social protection remain, in particular with the absence of a sustainable financial strategy, lack of coordination and inclusiveness, low technical and implementation capacity in the area of social security. to be addressed.

The ILO work for 2020-21 will support constituents in designing a sustainable financial strategy and fiscal space for social protection along with supporting the coverage extension of social security schemes. In addition, capacity-building support will be provided to concerned government agencies at Federal and selected regional levels to facilitate coordination of the social protection system through the establishment of national and regional social protection councils.

10.12.2020