Munyonyo – Bank of Uganda Governor, Michael Atingi-Ego, has called for urgent reforms to strengthen Uganda’s pension systems, deepen domestic savings, and extend coverage to informal sector workers.
Speaking at the All Africa Pension Summit 2025 held at Speke Resort Munyonyo, Atingi-Ego said Uganda’s pension assets and coverage remain among the lowest in Sub-Saharan Africa, but noted that this presents a critical opportunity for transformation.
“Pension fund assets per working-age person in Uganda stand at just under USD 120, compared to USD 6,300 in Botswana and USD 5,700 in Namibia,” he said. “This underscores both the challenges and opportunities before us — to strengthen our pension systems, deepen domestic savings, and build a more resilient financial future for all Ugandans.”
The Governor highlighted that Uganda’s average pension coverage for the elderly stands at only 3.9%, far below the Sub-Saharan Africa average of 7.3%, largely due to the dominance of informal employment.
“Nearly 90% of employment in Uganda is within the informal sector, raising an important question: to what extent do traditional pension models leave the majority of workers uncovered?” he asked. “This is why financial inclusion is critically important — how do we integrate informal workers into the monetary economy, and more importantly, into activities that enable them to contribute consistently to their pensions?”
Atingi-Ego reaffirmed that the Central Bank is championing financial inclusion as one of the key strategies to achieve broader pension coverage. He cited ongoing innovations that demonstrate the effectiveness of this approach.
“In 2021, UBRA licensed Maxima and KACITA micro pension schemes designed specifically for informal workers. These schemes allow mobile money contributions with flexible amounts and timing. This is the kind of model we need to scale up, particularly as we pursue financial inclusion,” he said.
The Governor outlined key reforms currently under review by the Uganda Fixed Income Markets Committee, chaired by the Bank of Uganda, and established by the Minister of Finance. These include: expanding micro pensions for the informal sector; redesigning private schemes to ensure portability and predictable taxation; and implementing the Public Service Pension Act (2025) under a contributory model.
He added that Uganda is also looking to enhance regulatory oversight, guided by the International Organisation of Pension Supervisors (IOPS). “These ongoing reforms align with Uganda’s Tenfold Growth Strategy and the National Development Plan, which target agro-industrialisation, tourism, mineral-based industrialisation, science, technology, and innovation,” Atingi-Ego said.
Global and Regional Leaders Applaud Uganda’s Pension Reforms
Marcelo Caetano, Secretary General of the International Social Security Association (ISSA), commended Uganda’s leadership in advancing social security across Africa and highlighted the country’s growing partnership with ISSA. He emphasised that, “Pension investment goes beyond profits — it’s about improving lives and driving social impact through collaboration.”
Agnes Aistleitner-Kisuule, General Partner at First Circle Capital, echoed the need for collaboration between pension funds, private equity, and venture capital. “We need stronger partnerships between pension funds and private investors to drive Africa’s growth. Local capital participation, job creation, and technology investment must be at the centre of sustainable economic development,” she said.
Dr David Ogong, Chairperson of the Board at NSSF Uganda, called on Africans to view pension funds as engines for national development, not merely as retirement savings tools. “Pension funds can finance infrastructure and drive growth. We must collaborate — governments, private sector, and individuals — to build stronger, more inclusive economies,” Dr Ogong said. He urged workers to embrace a savings culture through innovations like NSSF Smart Life.
During a recap of Day Two of the summit, Geoffrey Sajjabi, Chief Commercial Officer of NSSF Uganda, urged pension schemes to look beyond financial returns and focus on impact investing that uplifts communities.
“It’s not enough to think only about our members; we must think about the broader community. When we invest in impact, we create jobs, strengthen societies, and secure our collective future,” he said.
The three-day All Africa Pension Summit 2025 brought together leaders from across the continent to reimagine Africa’s financial future. Discussions centred on unlocking long-term capital, expanding pension coverage, driving sustainability, and promoting social impact.