Ugandans urged to develop saving culture

Saving for emergencies has remained a challenge among Ugandans and this has partly slowed down economic growth, Gorret Masadde, the chief executive officer of the Uganda Institute of Banking and Financial Services (UIBF), has said.

She said this has compelled the institute to come up with a financial literacy campaign dubbed: Your money can, Be money smart. The campaign is aimed at building resilience of the public to become more financially aware.

This was during the launch of the Annual Banking and Financial Services Awareness Month at the Sheraton Kampala Hotel. The month is aimed at improving financial literacy among Ugandans.

"We know very well that we started the year with a lot of excitement and hope, but see where it has thrown us.

"We realise more than ever that a crisis can happen anytime. So we need to be more prepared for such times by treasuring the little we have since there is potential in everything," Masadde said.

She asked the public to value money more and utilise it for the betterment of their lives and families.

During the campaign, Masadde said the providers of banking services and products, including insurers, bankers, accountants, regulatory agencies and trainers, will be connected with users and consumers for guidance.

"This campaign is anchored on financial literacy pillars to help people set out the goals and plan for them, budget and save before spending on any investment," she said.

Masadde observed the need to invest and manage the loans wisely.

She asked people to plan early for retirement, saying the mandatory saving can be supplemented with other incomes.

Masadde said during the lockdown, it was observed that only about 40% of the population could manage to sustain themselves with an income, with only 19% being able to sustain themselves without an income.

The awareness month, she said, will revolve around personal financial

management, savings, managing loans, investment, insurance, planning for retirement, digital finance and careers in banking and finance.

Masadde said the campaign will call for an award every week and a testimony from passionate people. Masadde described saving as vegetables for nutrition which people take to be bad, yet they help them leave a healthy life. She said saving is a journey which can be improved.

"We are encouraging the youth to think of how to survive and this can only be done through saving," she said

Louis Kasekende, the chairman of UIBF, said people should continue embracing mobile banking as a saving platform and business advisory.

"We need to leverage technology to go beyond just payment so that we can grow bigger," he said.

Kasekende said currently, the registered clients are about 30 million with 19 million people being active.

Joseph Lutwama, the director of programmes at Financial Sector Deepening Uganda, urged Ugandans to embrace insurance if they are to safeguard their investments.