Al-Shafii: Reforming Pension Systems is an Urgent Necessity, and Africa Must Seek Innovative and Comprehensive Solutions
Abdel Rahim Al-Shafii, head of the Insurance and Social Security Regulatory Authority (ACAPS), praised the growing importance of reforming pension and retirement systems in Africa, urging that it be made a priority in the continent’s development policies and calling for enhanced cooperation among countries to overcome shared challenges.
Al-Shafii made his remarks during the opening session of the sixth annual forum of the African Pension Supervisors Association (APSA), which opened today in Marrakech under the theme “Enhancing the Resilience and Sustainability of Pension Systems in Africa.”
He noted that the forum convenes at a strategic moment characterized by rapid demographic, economic, and technological transformations, alongside a budding political will among many countries to transform pension systems into genuine tools for social inclusion and stability.
Al-Shafii warned of the increasing challenges facing pension systems across the continent, primarily the low coverage of the working population, the growth of the informal economy, structural imbalances, shifts in career paths, and the rising vulnerability of marginalized groups, especially women and the elderly in rural areas.
He pointed out that fewer than 11% of working-age individuals in Africa benefit from pension coverage, while only a third of seniors receive retirement benefits, according to data from the World Bank and the International Labour Organization, highlighting the extent of vulnerability in the continent’s social protection systems.
He emphasized that these challenges require innovative solutions that are tailored to African realities, based on solidarity, sustainability, and transparency. He called for the establishment of hybrid mechanisms that blend contributory and non-contributory systems, as well as expanding coverage to include those working in the informal sector, in addition to shifting towards risk-based oversight.
Al-Shafii discussed Morocco’s experience, highlighting that ACAPS is supporting the royal initiative related to the expansion of social protection, which was launched in 2021. He indicated that the pension coverage rate in Morocco has reached 49% of the working population, and it is expected to increase to over 80% in the long term thanks to ongoing reforms.
He revealed that Morocco’s pension systems exhibit some financial vulnerabilities, anticipating that the reserves of the civil pension system will be depleted by 2031, while projections for the National Social Security Fund (CNSS) indicate that it will run out by 2037, whereas the RCAR Fund is expected to last until 2051.
In concluding his remarks, Al-Shafii considered the forum a space for exchanging experiences and exploring avenues for innovation and coordination among African bodies to strengthen their capacities to lead bold and comprehensive reforms, reintegrating pension issues within the priorities of human and social development in Africa.
It is noteworthy that the forum, held in partnership with APSA and FSD Africa, includes the participation of African officials and regulatory bodies, representatives from international organizations, experts, and research institutions, aiming to exchange best practices and enhance governance and sustainability capabilities in pension systems across the continent.
This forum is the first of its kind organized in Morocco and is part of the growing presence of the Kingdom in the African discourse on social protection and economic justice.
