Ugandans have been urged to develop a savings culture to improve household income, facilitate investment and contribute to the country’s economic and social development.
The call was made by Dr Chris Baryomunsi, the Minister of ICT and National Guidance, at the launch of the Standard Chartered Bank’s Schillingi Funds digital savings service.
The product launched by the bank is geared at increasing the savings culture across the country.
“Uganda’s gross national savings currently stand at 17.9%. This is largely attributed to lack of financial literacy, limited job opportunities and a poor savings culture,” the Minister said.
The minister stressed that in a country whose citizens’ saving culture is dismal, investment in technology is crucial. This helps to bridge the gap and causes increased savings and economic development.
This lack of financial preparedness according to Sanjay Rughani, the Chief Executive Officer of Standard Chartered Bank Uganda, has led to the launch of a digital savings application.
“With returns of up to 12%, Standard Chartered’s Schillingi Funds Digital Service aims at not only providing financial services to the last mile person but also widening the scope of savers,” he noted.
With only about 54% of Ugandans saving regularly, efforts to improve the public ought saving habits to be engaged in leveraging finance services to increase productivity, incomes and employment, access to basic needs and overall economic growth.