Role of social security fund scheme in enhancing the socio-economic development of Rwanda.

Table No.4.15. SSFR»s projects Job creation

Investment type	Jobs created
Direct investment	2,123
Indirect investment	245
Total job created	2,368

Source: SSFR, Annual Report, 2008

A part job creation, SSFR contributed to the Government revenue. From what has been presented above, it is clear that SSFR contributes to government revenue through tax payments. The fund invests in some taxable businesses like fixed deposits in banks and pays tax. The contractors in various real estate projects pay VAT on receipts from services rendered. The companies where SSFR holds shares pay different types of taxes like VAT, TPR and profit tax. The table 15 below shows the details of taxes paid.

Table 4.16: SSFR contribution in fiscal collections in Rfw

Contribution in tax	Amount in Frw
	2007	2008
Direct contribution^1(*)	531 209 273	844 189 689
Indirect contribution^2(*)	1 377 992 989	2 438 297 898
TOTAL	1 909 202 262	3 282 487 587

Source: Secondary Data

Table 16: SSFR shareholding as at 31st May 2009

Company	Company's Equity	N° of Shares	SSFR Shares	Value of SSFR shares	% of SSFR Holding
SONARWA	4,551,428,571	50,000	8,125	739,607,143	16.25%
B.K	5,005,000,000	45,500	15,313	1,648,683,000	33.66%
B.H.R	6,431,866,976	64,319	22,512	2,251,153,442	35%
B.R.D	7,000,021,000	7,000,021	1,552,628	1,552,628,000	22.18%
RWANDATEL	2,420,000,000	242,000	48,400	484,000,000	20%
A G L	1,250,000,000	1,250,000	500,000	500,000,000	40%
R E I C	1,120,000,000	4,000	700	196,000,000	17.5%
R I G s.a	13,850,000,000	13,850	2,400	2,400,000,000	17.33%
ULTIMATE Concept	12,000,000,000	5,000	2,000	4,800,000,000	40%
HOSTELS 2020 sarl	3,000,000,000	300,000	120,000	1,200,000,000	40%
R.F.TZ	11,000,000,000	1,100,000	164,748	1,647,480,000	15%
KIGALI TILES CO	50,000,000	50,000	15,000	15,000,000	30%
R.F.I. CO.	8,900,000,000			6,675,000,000	75%
SAFARICOM				4,228,419,565
RWANDA DISTILLERY	7,458,400,000	7,458	1,492	33,376,742	20%
TOTAL				28,371,347,892

Source: SSFR, Annual report, 2008

The participation of SSFR in these companies indirectly contributes to economic growth through taxes, employment and aggregate demand.

In line with the second research question which says» Do the SSFR through the benefits paid and its investments contribute to the socio-economic development of RWANDA?» The finding shows that |SSFR has contributed tremendously to the development of the country in all dimensions.

4.9. Analysis of the organic law which is applicable for pension of 2003 modifying the law of 1974 convenient to pensioners.

The 17 respondent said that the law is outdated and must be modified; there are some articles in the law that is not alien with today's living conditions and economic trends. For example, pension must be given in advance in order to maintain the sustainability of the old age. The model of benefit calculations are not reflecting on the savings approach and the contributions must produce interests at the end of a certain period.

Indeed, this responds to the third research question as stated» Is the current law governing the social security of RWANDA needs some improvement in order to contribute to the well being of the old age and survivors in their retirement period?»

The findings shows that , the current law is not favourable to the pensioners and therefore does not give provision for getting their benefits in early time which would enable them to go for businesses when still energetic. Secondly, the allocated funds are dumped and do not generate interests

* ¹ Direct contribution refers to taxes paid by SSFR

* ² Indirect contribution relates to taxes paid by companies where SSFR has shares (in proportion to SSFR

shareholding) and VAT paid by contractors