The Role of National Social Security Program on Poverty Reduction of Informal Sector Workers in Tanzania: A Case of Masasi District.

Sebastian, Mwita Werema (2025) The Role of National Social Security Program on Poverty Reduction of Informal Sector Workers in Tanzania: A Case of Masasi District. Masters thesis, The Open University of Tanzania.

PDF - Submitted Version Available under License Creative Commons Attribution No Derivatives. Download (1MB)

Abstract

This study investigated the role of the National Social Security Funds (NSSF) in poverty reduction among workers in the informal sector in Tanzania, focusing on three key components: loan services, old-age pensions, and medical benefits. The research followed a positivism research philosophy and employed a deductive approach with an explanatory research design. Data were collected from a sample of 398 informal sector workers in Masasi district, with 316 respondents completing the questionnaire. The data were analyzed using descriptive statistic and multiple linear regression through IBM-SPSS version 29.0 software. The findings revealed that NSSF loan services have a statistically significant positive relationship with poverty reduction, suggesting that loan services are crucial in improving financial stability and reducing poverty among informal workers. However, the study found a weak positive relationship between NSSF old-age pensions and poverty reduction, indicating that the current pension scheme is inadequate to provide meaningful financial security for informal sector workers in old age. Regarding medical benefits, the study found a significant positive impact on poverty reduction, highlighting the importance of healthcare coverage in alleviating financial burdens. In conclusion, while the NSSF program contributes to poverty reduction, its impact varies across its components. Strengthening loan access, expanding medical benefits, and restructuring the pension system are recommended to enhance the program’s effectiveness. Keywords: National Social Security Program, Poverty Reduction, Informal Sector, Loan Services, Medical Benefits.

Actions (login required)

View Item