Retirement Benefits Sector Records Growth.
Drake Nyamugabwa
By Innocent Kayiza.
Uganda's retirement benefits sector has grown to shillings 25.40 trillion, an increase from 21.4 trillion in 2023. The sector's contribution to the national GDP has grown to 12.2% from 10% in 2023.
This was revealed by Hon. Matia Kasaija, the minister for finance planning and economic development as he released the annual sector performance report for 2023/2024 published by the Uganda Retirement Benefits Regulatory Authority ( URBRA)
The robust supervision and the sector's strategic allocation of resources contributed to the significant growth. A net income of UGX 3.10 trillion and net member contributions of UGX 989.94 billion were pivotal. Fixed-income securities, accounting for over 90% of the total revenue, remained the backbone of investment performance, offering attractive risk-adjusted returns.
Elaborating on the key factors in recoveries, " our risk-based supervision system played a crucial role in recovering UGX 23.3 billion for members, emphasizing transparency and risk management " and Mrs. Rita Nansasi Waisswa URBRA's acting CEO.
Despite significant achievements, URBRA remains committed to addressing low coverage in Uganda's informal sector, which comprises 85% of the workforce. The authority is spearheading the National Long-term savings scheme (NTLSS) to enable informal workers to save for retirement, leveraging digital platforms for accessibility.
Amidst the growth, the sector has always identified challenges such as low coverage and inadequate private pension design. URBRA therefore advocated for structural reforms to ensure, sustainable, adequate, and secure retirement benefits for all Ugandans, with a focus on sustainability, inclusivity and member outcomes, the report underscores.
