Bank of Uganda in financial literacy drive

By John Odyek

Like in any other country, many people in Uganda lack the knowledge, skills and confidence to manage their finances well.

Bank of Uganda under Governor Emmanuel Mutebile has come up with a  'Strategy for Financial Literacy in Uganda'.

"The strategy will help individuals to manage their personal finances better; they will be less likely to suffer losses; they will be more likely to be financially included; and they will be able to choose from more competitively priced financial services and products," read part of the strategy.

The goals for the Strategy are: to improve the ability of the population to manage their personal finances well; to help equip people to protect themselves against fraud; to make cost-effective use of resources which can be used to strengthen financial literacy; to promote increases in the number, and improvements in the quality, of initiatives to strengthen financial literacy; and to facilitate effective co-ordination and knowledge-sharing between organisations and individuals who are working to improve financial literacy.

An essential step towards achieving the National Development Plan's vision for a transformed Ugandan society from a peasant to a modern and prosperous country within 30 years, is to increase access to affordable financial products and services. This, in turn, requires people:to be confident that they will be dealt with fairly by financial services providers; and to be financially literate.

The term "financial literacy" is defined, for the purposes of the Strategy for Financial Literacy in Uganda, as having the knowledge, skills and confidence to manage one's finances well, taking into account one's economic and social circumstances.

Mutebile has led the development of the Strategy for Financial Literacy in Uganda and will lead its implementation, with the support of the German Development Cooperation implemented by GIZ and working in partnership with a broad range of stakeholders. BOU will continue to be advised by the Financial Literacy Advisory Group and to use the Financial Literacy Information Sharing Group as the primary means of communication with the full range of stakeholders.

Following consultation with stakeholders, BOU decided that the Strategy should focus on five strands:Schools,  Youth, Rural outreach, Workplace, Media

Working Groups have developed strategic priority activities for each of these strands. The guiding principles which have governed the development, and will govern the implementation, of the Strategy for Financial Literacy in Uganda are: working in partnership; using a broad range of methods and channels; prioritizing ;taking advantage of teachable moments; consumer testing of proposed initiatives and materials; monitoring and evaluation; learning from experience, including from other countries, other sectors and other disciplines; communicating effectively; and cost-effectiveness

Financial services providers will have a larger market in which to compete; and their clients3 will be better informed. For Uganda as a whole, the implementation of the Strategy for Financial Literacy in Uganda will increase financial inclusion; will help to promote a sound financial system; and will help to take the poor out of poverty.

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