KAMPALA, UGANDA — The Ugandan government has imposed a major challenge on the nation’s financial institutions, demanding they double the national savings rate to 40% of GDP by 2024 to fund the country’s aggressive economic expansion. Permanent Secretary of the Treasury Ramathan Ggoobi issued the mandate Wednesday, making clear that achieving the national $500 billion GDP goal hinges on the financial sector’s immediate contribution.
Speaking at the brand unification event for Old Mutual, Ggoobi stressed that the target to increase the savings rate from the current 20% of GDP to 40% is essential to match the required investment level for the nation’s “tenfold growth strategy.”
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“One of the key ambitions under this strategy is to double the level of savings in the economy,” Ggoobi said. He emphasized the government’s appreciation for companies that offer savings solutions and investment group businesses, urging them to expand their services to meet the national target.
The Treasury PS also highlighted Old Mutual’s strategic role in protecting national infrastructure, acknowledging the company is the lead insurer for the Insurance Consortium of Oil and Gas Uganda (ICOGU) and provides coverage for major state hydropower plants, including Karuma and Isimba.
Financial regulators present affirmed that a robust, compliant sector is necessary to support the government’s lofty economic goals.
Alhaj Kaddunabbi Ibrahim Lubega, CEO of the Insurance Regulatory Authority of Uganda (IRA), stressed the importance of industry standards, citing Old Mutual’s long history as a “mark of resilience and consistency having stood the test of time.” Lubega noted that despite the sector’s potential, insurance penetration in Uganda is still below 1%.
Old Mutual executives responded by outlining their commitment to delivering on the government’s mandate through its new unified brand identity, consolidating its General Insurance, Life Assurance, and Asset Management businesses.
Mathias Katamba, Board Chair of Old Mutual Uganda, stated that the transition was “a renewal of purpose, a reaffirmation of our promise, and a celebration of our shared journey.”
Stephen Chikovore, Managing Director of Old Mutual Insurance Uganda, underscored the company’s comprehensive service offering. “We are the only business in the country with this comprehensive service offering,” he said, citing the insurance division’s settlement of over UGX 150 billion in claims in 2024 and the sales force’s generation of over UGX 56 billion in gross written premiums between January and August.
Shamsa Mungoma, the company’s Human Capital Head, concluded by reaffirming the focus on staff support, stating: “As you continue to take care of our customers, we would like to reassure you that Old Mutual has always been, and will continue to be, committed to taking care of you.” The company also distributed tree seedlings to agents, symbolizing a commitment to sustainability and growth in line with the economic vision.
