98% OF UGANDAN ACCOUNTS HAVE LESS THAN 1O MILLION: WHAT IS THE IMPLICATION FROM A FINANCIAL LITERACY PERSPECTIVE?

 At the recently concluded Uganda Financial Literacy Association Think Tank held on 30th May 2025 at Hotel Africana, a senior official of the Deposit Protection Fund noted that the Fund insures up to 10 million Uganda shillings. The major reason given was that most Ugandan accounts have less than 10 million Uganda shillings on average. This has financial literacy lessons on a national level. The individual savings culture is also translated at the national level. Does the above state of affairs signal that our savings culture as a nation are poor? Does it signal that most Ugandans keep their money under the bed? Does it mean that many Ugandans fear stepping into the banking hall? These are all questions to which I have no answer. Recently in the Daily Monitor there was an article that pointed out that majority of Uganda's youths were addicted to gambling. Does this correlate with the low savings rates at the national level?

A lot of interventions have been introduced by the government and other development partners such as the civil society to empower grassroot communities to be financially included. These are noble steps and we see an increase in the savings culture of Ugandans. With technological advancement financial institutions have linked customers accounts to their phones and they can now transact using their phone. In other wards the phone has become the modern bank. Through Agency Banking customers can now easily access their accounts at their door step. Institutions such as Bank of Uganda have intensified financial literacy training and over the years over 2000 financial literacy trainers have been trained to spearhead the financial inclusion agenda. The Uganda Financial Literacy Association has been very instrumental in coordinating efforts of sharing financial literacy with grassroot communities and it has over 70 chapters across the country.

HOW TO INCREASE THE SAVINGS RATES IN UGANDA 

1.Enhance the management of commercial banks to build public confidence

2.Intensify financial literacy training across the country especially targeting the underserved communities

3.Reduce the cost of internet so that more Ugandans can access mobile banking

4.Fast track the provision of national ids since a number of youths lack national ids

5. Enhance the expansion of the agency banking model to reduce transaction costs

6. Recognize financial literacy champions who reach the extra mile in empowering the communities with knowledge especially in rural areas.

Ugandans have the zeal and motivation t save .As discussed above much more needs to be done to encourage Ugandans to become better savers. With a better saving culture the interest rates in banks will reduce since they will have access to cheaper capital. 

Coach Phillip Kiryowa 

Personal Finance Coach(CMA)

Master Trainer, Bank of Uganda 

Founder Advanced Empowerment Link 

0752615916

For Financial Freedom and Sustainable Enterprises.

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