The Bank of Uganda (BoU), the Uganda Institute of Banking and Financial Services (UIBFS), the Uganda Bankers Association, the Deposit Protection Fund, financial sector regulatory institutions, financial service providers, development partners, and other stakeholders have used this year’s World Savings Day to invite Ugandans to trust their savings with regulated financial institutions.

The Deputy Governor of Bank of Uganda, Michael Atingi-Ego, speaking during the World Savings Day Press Conference held in Kampala on Tuesday emphasized the importance of saving money in regulated financial institutions instead of keeping it hidden away or in savings boxes.

He said: “Regulated financial service providers ensure the security of customer savings and help to preserve value by paying interest on the deposits. Saving money without earning a reasonable return, e.g., in a pot or under a mattress is unwise because the amount stays fixed while the prices of goods and services typically keep increasing year in and year out.”

He added: “The only way to preserve and grow the value of your money is to earn a return greater than inflation. To do this, save your money in formal and regulated financial institutions, such as commercial banks, credit institutions, and 

microfinance deposit-taking institutions, which the Bank of Uganda regulates.”

He said the government has supported the development of other financial institutions such as savings and credit cooperatives (SACCOs), accumulating and savings credit associations (ASCAs), rotating and savings associations (ROSCAs), and several other microfinance institutions. 

The government has also established cabinet-level oversight of the sector, instituted a support centre, and enacted an enabling law with a regulatory regime under the Uganda Microfinance Regulatory Authority (UMRA), he said, explaining that these measures have made it easier for Ugandans to access financial services, regardless of their income level or location.

The Deputy Governor also revealed that digitalisation is making saving and accessing other financial services

increasingly available to everyone through various formal tools tailored to different categories of users. He explained that digital technology, such as mobile phones and other devices, is solving the issue of efficiently accessing the unbanked population, who often lack access to physical bank branches in remote areas. 

He said: “Accordingly, the BoU collaborates with stakeholders such as payment service providers and operators, FinTechs, regulators like the Uganda Communications Commission, and development partners to innovate and expand digital financial services, products, and phone and internet connectivity nationwide.”

He added: “We at the BoU urge the public to keep their money in the digital financial system. After saving your cash in financial institutions through various means, including mobile money, we encourage you not to withdraw (or “cash-out”) your money but keep earning interest on your digital accounts, executing payments, and accessing micro-credit and micro-insurance services.”

He stated that digitalisation offers the most effective means of providing financial services to all Ugandans, many outside the money economy. According to the Financial Capability Survey conducted by BoU in 2020, approximately 50% of Ugandans saved money. Of those who saved, 40% did so for immediate consumption, while only 20% saved towards specific life goals, such as owning a house.

Every year on 31st October, the world commemorates the World Savings Day. This year, Uganda celebrated World Savings Day under the theme “Personal Financial Wellness – Live it.” 

Bank of Uganda said this theme “emphasizes allocating your income wisely among necessities, desires, and savings.” “We have planned numerous activities under this theme during November 2023 and invite you to participate actively,” Atingi-Ego said.