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Uganda’s pension sector has witnessed a remarkable 10% increase in total assets over the past year, soaring to a record high of UGX 22 trillion. This growth primarily stems from a surge in net contributions amounting to UGX 700 billion and substantial income generated from investments valued at UGX 1.3 trillion.
Announcing this milestone, Amos Lugoloobi, Minister of State for Planning, unveiled the 2023 Annual Performance Report of the Uganda Retirement Benefits Regulatory Authority (URBRA). The report underscores the sector’s robust performance and its pivotal role in Uganda’s economic landscape.
Accompanying the surge in total assets is a notable rise in the number of individuals saving for retirement, with figures escalating from 3,015,807 in 2022 to 3,142,311 in 2023. This represents a 15% coverage of Uganda’s total working population, signifying an increasing awareness and participation in retirement savings among Ugandans.
Minister Lugoloobi commended the citizens who embraced voluntary retirement saving in 2023, emphasizing the positive impact of saving for retirement on the national economy. He highlighted that retirement savings currently constitute 60% of Uganda’s Gross Domestic Savings and contribute 11.5% to the Gross Domestic Product (GDP). Moreover, retirement benefits schemes significantly contribute to economic growth through tax payments, amounting to UGX 235 billion in 2023.
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Martin Anthony Nsubuga, CEO of URBRA, attributed the sector’s commendable performance to stringent supervisory actions and enhanced compliance among regulated entities. Key among these actions is the implementation of a Risk-Based Supervision system, enabling the identification and mitigation of risks before they compromise the obligations of regulated entities, thus safeguarding savers’ funds.
Nsubuga underscored the importance of governance, administrative efficiency, and prudent investment management in driving sector growth. He emphasized URBRA’s commitment to swift and decisive action, with an increased focus on scheme management and operations to ensure compliance and protect savers’ interests.
Despite notable achievements, the report highlighted several concerns, including governance lapses, delayed remittances, and non-compliance with supervisory directives. Julius Bigirwa Junjura, Chairman of the URBRA Board of Directors, emphasized the sector’s core objective of preventing old-age poverty among retirees.
Junjura emphasized the importance of consistent remittance of contributions and timely payment of benefits to safeguard savers’ interests. He applauded URBRA’s successful recovery of UGX 26 billion, underscoring the authority’s commitment to ensuring the integrity and stability of Uganda’s pension sector.
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