South Africa To Get Mobile Pension Plan

Mbao is a pension plan launched in June 2011 targetting workers in the informal sector in Kenya. The voluntary retirement savings plan has a minimum contribution of Sh20 to be paid via Safaricom’s M-Pesa or Airtel’s money transfer service. The service now has 40,000 subscribers and collects at least Sh4 million monthly.

Now the Retirement Benefits Authority and Mbao trustees are in talks with their South African counterparts to help them set up a similar mobile pension fund for informal workers in the country.

Mbao wants to revolutionize the saving culture in the country, enabling small business holders and casual workers to save for a comfortable retirement – usually excluded from pension savings schemes.