URBRA moves to informal sector

Saving for one's retirement is something that has been considered to be restricted to those in the formal sector. However, the Uganda Retirement Benefits Regulatory Authority (URBRA) has encouraged people in the informal sector to also build their own capacity as individuals for retirement.

This will ensure that when they retire from working, they do not relapse into a state of poverty.

David Nyankundi Bonyi, the Chief Executive Officer of URBRA explains that it is important for this section of the population to plan for its retirement because the informal sector accounts for most of the Uganda's labour market.

"The labour market in Uganda which comprises people aged 18 to 60 years stands at 17 million; notably 13 million are in the informal sector," Bonyi says.

"This means that majority of people in the labour market would die in retirement without benefits so we cannot afford to ignore such a large population in terms of social benefits and quality of life," he adds..

Currently most of the people in the informal sector rely on SACCOs however these have been faced with challenges like in-house fighting and cases of where leadership disappears with people's savings.

Based on this, the authority licensed Mazima retirement plan which has been in existence for one year and has 730 members with nearly 500million in savings.

"What generally guarantees the way we interact  as a population is government; we have to ensure that entities are regulated such that even when they are faced with problems people will still get their money," Livingstone Mukasa, the CEO of Mazima retirement plan states.

The scheme allows people to start saving from as low as Ugsh.2000 daily and ugsh.10, 000 weekly.

Informal sector's concerns

Bonyi and Mazima were speaking during a health camp in Katwe organized in conjunction with Mengo hospital to offer free optical services to those in artisans in the area.

The artisans' questions in regards to saving for their retirement centered on the issues of getting their savings when they die and whether their savings earn interest.

"What happens if I save my money for five years and I die; does it go to my family?" Musa Sekanjako asked.

In response to Sekanjako's query, Mukasa explained that the registration form features a beneficiary nomination section which allows one to register up to four beneficiaries.

Charles Mulindwa a mechanic on the other hand wondered if his savings will earn interest.

Bonyi explained that Mulindwa's savings will earn interest noting that the authority ensures that the scheme can build on a person's savings before licensing it.

"We monitor a scheme's investment every quota and Mazima scheme earned an interest of 14% last year," he said.