Ejo Heza: Rwanda's long-term savings scheme explained
Ejo Heza lets anyone in Rwanda, including informal workers, save for old age in small, flexible amounts from their phone. How it works and how to join.
Ejo Heza, which means "a bright tomorrow", is a voluntary long-term savings scheme run by the Rwanda Social Security Board (RSSB). It is designed for people who are not covered by a workplace pension, such as farmers, traders, motorcycle taxi riders and other informal workers, but anyone can use it to save more for old age. This guide explains how the Ejo Heza savings scheme works, who can join, how to save, the government incentives, and whether it is right for you.
Why Ejo Heza was created
Most Rwandans work in the informal sector, where there is no employer to deduct pension contributions. Without savings, many people face old age relying entirely on family. Ejo Heza gives everyone a simple, low-cost way to build a retirement income, using mobile money so that even small amounts can be saved regularly. Savings are invested by RSSB, and members receive returns on their money over time.
Who can join Ejo Heza
The scheme is open to Rwandan citizens with a permanent national ID, and to foreigners living in Rwanda. Formal and informal workers can both join, including the self-employed and members of the RSSB pension scheme who want to save extra on top of their compulsory contributions. Parents or guardians can also open accounts for children under 16, starting their savings early.
How to save with Ejo Heza
Joining is free. Dial *506# on MTN or Airtel-Tigo, or register online, and follow the prompts to create your account. You can save any amount you choose, as often as you like: daily, weekly, monthly or yearly. This flexibility suits people with irregular income, such as farmers who earn mostly at harvest time, because they can save more in good months and less in lean months.
Members receive a monthly pension from age 55, based on the savings and returns they have built up. The earlier you start and the more regularly you save, the larger your pension will be, because returns compound over many years.
Government incentives
When the scheme launched, the government matched savings for lower-income members to encourage participation. It offered a 100% co-contribution for Ubudehe categories 1 and 2 who saved at least RWF 15,000 a year, and 50% for category 3 savers of at least RWF 18,000, capped at RWF 18,000. Members who saved at least RWF 72,000 a year qualified for free life insurance paying RWF 1,000,000 to a beneficiary plus RWF 250,000 towards funeral costs. These incentives were set for limited periods, and Rwanda has since revised its Ubudehe categories, so check with RSSB what applies today before counting on them.
How much could you build?
Saving consistently makes a real difference. Someone who saves RWF 6,000 a month puts away RWF 72,000 a year, which over 20 years is RWF 1,440,000 before any returns are added. With returns compounding on top, the final amount is larger. Use our savings calculator to test different monthly amounts and rates.
Is Ejo Heza right for you?
Ejo Heza is for long-term goals, not emergencies, because the money is meant for old age. If you might need the money within a few years, it is not the right place for it. Keep a separate emergency fund in an account you can reach quickly, such as an Umurenge SACCO or a mobile savings account; see our guide to Umurenge SACCOs and ibimina. For medium-term savings, consider Treasury bonds or a unit trust.
For employees, Ejo Heza complements the compulsory RSSB pension rather than replacing it. Our guide to Rwanda PAYE and RSSB pension explains the workplace contributions.
Tips for saving with Ejo Heza
Set a fixed amount and a regular day to save, so it becomes a habit. Check your balance through the USSD menu or online, and update your beneficiary details so your savings go to the right person if something happens to you. Encourage family members to join, especially young people, who benefit most from starting early.
Frequently asked questions
Is it free to join Ejo Heza?
Yes. Registration through *506# or online is free.
When can I get my Ejo Heza pension?
Members receive a monthly pension from age 55.
Can children have an Ejo Heza account?
Yes. Parents or guardians can open accounts for children under 16.
Sources
This article is general information, not financial advice.