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The government is committed to investing in the population through various vehicles including the Parish Development Model
Kampala, Uganda | THE INDEPENDENT | Uganda’s government, in collaboration with development partners, has long focused on wealth creation initiatives among the population. However, Finance Minister Matia Kasaija believes these efforts can achieve significantly better outcomes if the population possesses a strong grasp of financial literacy.
His observations were conveyed by Moses Ogwapus, Commissioner for Financial Services, during the unveiling of the Uganda Financial Literacy Association’s (UFLA) strategic plan for the next three years, coinciding with its decade-long celebration held on May 30 in Kampala.
Held under the theme “Leveraging Financial Literacy for Uganda’s Socio-Economic Development,” the event underscored the crucial role of financial education in propelling national economic progress.
Kasaija said understanding fundamental financial concepts like saving could encourage individuals to invest more substantially in their farms and businesses, fostering wealth creation, job opportunities, and enhanced productivity.
“If people save in financial institutions, such as banks, their savings can be pooled and used to provide finance for business innovation and expansion,” he explained.
Kasaija said the said the government is committed to investing in the population through various vehicles including the Parish Development Model (PDM), which, as of April 2024, saw 10,583 PDM SACCOs capitalized with Shs50 million each. Others are the Presidential Initiative on Wealth and Job Creation, focusing on Emyooga, with an Apex Emyooga SACCO formed at each constituency receiving Shs30 million as seed capital.
Daniel Ayebare, Chairperson of UFLA, said the new 3-year strategy’s focus on reinforcing UFLA’s institutional capacity, strengthening partnerships, and enhancing the delivery of financial literacy content is deliberate to reach a wide audience.
“This strategy aims to deliberately reach out to the last person on the ground,” Ayebare stated, adding that UFLA has trained 2,500 members who can deliver financial literacy programs in 33 languages across Uganda.
Financial literacy has in the recent days become so crucial not only for personal financial management but also for safeguarding against risks, including financial fraud, and fostering entrepreneurship.
Citing Bank of Uganda’s Financial Capability Survey 2020, which showed that 50.4% of adults were financially capable, Kasaija said there’s need to narrow the gender gap in financial capability between men and women.
Kasaija emphasised the need for continued efforts to ensure that all Ugandans have the necessary financial skills to thrive in a dynamic economic environment.
“From a solid foundation, we still have more work to do to ensure all Ugandans have the financial skills and understanding they need to participate in a growing economy,” he said.
