Savings have grown to Shs20 trillion, says URBRA

Uganda Retirement Benefits Regulatory Authority (URBRA) has said saving as a contribution to gross domestic product has grown to 11.1 percent, even as a number of Ugandans are not saving. 

Speaking during celebrations to mark World Savings Day in Kampala on Monday, Ms Rita Faith Nansai Wasswa, the URBRA director legal services and secretary to the board, said developing a strong saving culture was one of the ways through which Uganda can achieve long term development. 

Uganda, she said, still has a low saving culture but savings have been growing, increasing from Shs4 trillion in 2011 to Shs20 trillion as of June 2022. 

The growth, Ms Wasswa indicated, now contributes 11.1 percent to gross domestic product. 

Speaking at the same event, Bank of Uganda deputy governor Michael Atntigi-Ego said there was need to empower Ugandans with effective knowledge and capabilities to save money to allow them access financial services such as insurance and loans, among others. 

The Financial Capability Survey 2020, he said, had shown that a large number of Ugandans save informally. 

For instance, he said, the survey had found that only 15 percent of Ugandans save in a deposit-taking financial institution, while 17 percent save on their phones using mobile money. 

The findings also indicated that up to 44 percent of Ugandans rely on village savings and loans associations while 42 percent rely on savings boxes at home. 

World Savings Day is commemorated with the view of strengthening the global savings culture. 

However, it also one of the avenues through which the financial eco-system can reduce the cost of credit. 

Ugandans continue to borrow money at high interest rates due to lack patient capital that can be used for long term investments and economy development. 

According to Mr Sande Protazio, the Insurance Regulatory Authority director research, planning and market development, said Ugandans must also begin to save through insurance, noting that there are currently 1.2 million Ugandans who hold policies in the insurance sector. 

The insurance sector, he said, has been growing with life insurance policy expanding by 30 per cent while non-life insurance has expanded by 20 percent per annum. 

Saving avenues 
                                         
According to Mr Sande Protazio, the Insurance Regulatory Authority director research, planning and market development, Ugandans must as well begin to save through insurance, noting that there are currently 1.2 million Ugandans who hold policies in the insurance sector. 

The insurance sector, he said, has been growing with life insurance policy expanding by 30 per cent while non-life insurance has expanded by 20 percent per annum. 
 
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