By Olivia Nabaggala
29th Feb 2024
The pension sector has registered a 10 percent increase in total assets in the last year, reaching a new height of Shs22 trillion.
The growth in sector assets was mainly a result of increased net contributions valued at sh700 billion and income generated from investments valued at shs1.3 trillion.
This is in the 2023 Annual Performance Report released on Thursday at the Uganda Media Center in Kampala by the State Minister for Planning Amos Lugoloobi. The report was published by the Uganda Retirement Benefits Regulatory Authority (URBRA).
According to the report, retirement savings rose from Shs3 million in 2022 to Shs3.14 million in 2023 representing 15 percent coverage of Uganda’s total working population.
Minister Lugoloobi, while releasing the report noted that an act of saving sets in motion a chain of decisions and actions that ultimately have a positive impact on the national economy.
He further said that currently, retirement savings account for 60% of Uganda’s Gross Domestic Savings, and 11.5 % of the Gross Domestic Product (GDP).
Additionally, retirement benefits schemes contributed to the economic growth through the payment of taxes amounting to UGX235 billion to the government in taxes in 2023, up from UGX227 billion in 2022.
Martin Anthony Nsubuga, the Chief Executive Officer of URBRU explained some of the key factors that have contributed to this increase that among others include the introduction of a risk based supervision system, increased compliance on the part of the regulated entities, governance, administrative and investment costs.
He also cited some of the challenges they have been grappling with that include delayed remittance, delayed payment of benefits, non compliance with supervisory directives among others.
End
Next:
Previous:
