Only 43% of Ugandans save despite 81% financial inclusion, new data shows

Fewer than half of Ugandans save money even though more than eight in ten now have access to financial services, according to figures presented at the launch of a new national financial literacy strategy.

Zerubabel Kwebiiha, the chief executive officer of Financial Sector Deepening Uganda, said only 43 per cent of people save. Of those, 64 per cent use formal financial services, while another 25 per cent save by lending to others or keeping cash at home.

The figures contrast with overall financial inclusion of 81 per cent and formal inclusion of 68 per cent, according to Andrew Kawere, the director of the National Payment Systems Department at Bank of Uganda.

The data was presented at the launch of the third Strategy for Financial Literacy in Uganda (2026–2031) at Speke Resort Munyonyo, in an event that coincided with World Savings Day commemorations.

Kwebiiha said spending needs for many Ugandans still exceed their incomes, with seven in ten people saying their spending needs are higher than what they earn. He said 60 per cent lack confidence in their financial security in old age.

“These are the issues the strategy must address. When we come back in five years, we should be able to say these numbers have significantly improved because the strategy was relevant,” he said.

A FinScope study cited at the launch found that nine in ten Ugandans experienced unexpected financial setbacks in 2023, while only about two in ten set long-term goals and worked towards them.

The study also found that only about one per cent of adults had access to a retirement scheme, insurance uptake stood at about two per cent, and only about half of adults were considered financially literate. Only three in ten said they could meet daily expenses without borrowing.

Savings as a share of gross domestic product stand at about 23 per cent, according to the figures presented, above the sub-Saharan Africa average but below the global average.

The gap between access and use has widened as digital channels have grown. Mobile money agents have increased from about 200,000 in 2019 to more than 1.2 million, while active mobile money wallets have risen from 14.5 million to 34.6 million, according to the figures presented. Agent banking and other channels have also expanded.

“We have made significant progress in extending access to financial services and this is very good. However, the jury is still out on what that access means for the day-to-day life of the ordinary Ugandan,” Kawere said.

He said access alone could not guarantee financial well-being, and that citizens needed practical knowledge, skills and the confidence to use financial services safely.

Augustus Nuwagaba, the deputy governor of Bank of Uganda, cautioned the public against equating visible wealth, such as a new car or an expensive house, with financial security.

“Real financial health is demonstrated by our ability to save, invest, meet our obligations and withstand unexpected financial shocks without our financial lives falling apart,” Nuwagaba said.

He said saving was defined not by the amount set aside but by the discipline of doing so regularly, adding that the country would need to mobilise domestic savings to finance its development priorities.

The new strategy prioritises practical knowledge, skills and confidence in using financial services. Its focus areas include digital financial capability, consumer protection, livelihood and youth capability, and building an institutionalised, evidence-based system for financial education.