Financial literacy workshop empowers Uganda's SMEs to boost resilience and growth
Carolyne Tayebwa, Head of Marketing and Distribution at UAP Old Mutual. Photo/COURTESY
What you need to know:
Studies by the Uganda Investment Authority (UIA) indicate that only 30% of Ugandan businesses survive beyond three years, with limited financial literacy being a significant challenge
In partnership with the Federation of Small and Medium Enterprises (FSME), UAP Old Mutual hosted a powerful financial education session on November 12, 2024, at Hotel Africana. The event drew over 400 SMEs, offering practical guidance on financial management aimed at enhancing resilience, growth, and long-term sustainability. With SMEs accounting for 80% of Uganda’s GDP and totaling 1.1 million businesses, the session was a crucial step toward addressing financial literacy gaps that hinder SME longevity.
Studies by the Uganda Investment Authority (UIA) indicate that only 30% of Ugandan businesses survive beyond three years, with limited financial literacy being a significant challenge. Insurance Regulatory Authority (IRA) data adds that, although awareness is growing, only a small fraction of SMEs have sustained insurance coverage for over five years. A 2021 survey underscored this gap, showing that 96% of 514 SMEs surveyed lacked any form of insurance.
Carolyne Tayebwa, Head of Marketing and Distribution at UAP Old Mutual, highlighted insurance as essential for business stability. “Insurance is not just a cost but a strategic investment in the future of SMEs. It provides a financial cushion against unexpected challenges that could otherwise jeopardize a business,” Tayebwa emphasized.
John Walugembe, Executive Director of FSME, echoed the importance of financial literacy, stating, “Our SMEs are the backbone of Uganda’s economy, yet they face considerable risks. Through initiatives like this with UAP Old Mutual, we aim to empower these businesses to make sound financial decisions, enhancing their ability to thrive.”
Apollo Mbowa Kibirango, Financial Literacy Manager at NSSF Uganda, closed the session with insights into financial wellness for SMEs. He stressed that a strong foundation in financial literacy equips businesses to make proactive, informed choices that safeguard both business and family stability.
This collaboration between UAP Old Mutual and FSME demonstrates a commitment to empowering Uganda’s SMEs. As a comprehensive financial services provider, UAP Old Mutual continues to support Uganda's economic growth by offering tools that enable businesses to thrive in an increasingly complex financial landscape.
