Kampala, Uganda — Uganda’s retirement benefits sector has recorded significant growth, with its value increasing to UGX 25.40 trillion, an 18.6% increment from UGX 21.4 trillion in 2023.
The sector’s contribution to the national GDP has also grown to 12.2%, up from 10% in 2023, according to the latest figures from the Uganda Retirement Benefits Regulatory Authority (URBRA).
The growth of the schemes was driven by a combination of net income amounting to UGX 3.10 trillion and net member contributions of UGX 989.94 billion. Income from fixed-income securities accounted for over 90% of the total income, enabling retirement benefits schemes to declare an average interest rate of 10.99%.
“The growth of the retirement benefits sector is a testament to the increasing awareness of the importance of saving for retirement among Ugandans,” said Ritah Nansasi Wasswa, URBRA’s Acting CEO.
“The growth of the schemes was driven by a combination of net income and net member contributions,” said Matia Kasaija, Minister for Finance Planning and Economic Development.
The sector also saw an increase in membership, with a 7% growth to 3.37 million accounts. Contributions increased by 8.3% to UGX 2.39 trillion, driven by enhanced employer compliance, new registrations, and salary increments.
URBRA has also launched the National Long-term Savings Scheme (NLTSS) to enable informal workers to save for retirement. The scheme aims to bridge the gap in retirement savings coverage, which currently stands at 15% of the workforce.
“The NLTSS is a critical initiative that will enable informal workers to save for retirement and secure their financial futures,” said Julius Junjura Bigirwa, URBRA Chairman Board of Directors.
“Our risk-based supervision system played a crucial role in recovering UGX 23.3 billion for members, emphasizing transparency and risk management,” said Ritah Nansasi Wasswa, URBRA’s Acting CEO.
The growth of the retirement benefits sector is expected to continue, driven by increasing awareness and demand for retirement savings products.
