C-NEWS BUREAU CHIEF
Kampala: Amos Lugolobi, the Minister of State for Finance and Planning, delivered a compelling speech on Friday as the 2023 Annual Retirement Benefits Sector Report was disseminated to the public. Addressing the audience, which included representatives from the Uganda Retirement Benefits Regulatory Authority (URBRA), media personnel, and esteemed guests, the minister highlighted key insights into the sector’s performance over the past year.
In his address, Minister Lugolobi emphasized the pivotal role played by the retirement benefits sector in securing old-age income for individuals through prudent savings and investment practices. He underscored the importance of transparency and accountability in the sector, especially in light of the regulatory framework provided by URBRA.
The minister commended the significant strides made in enhancing compliance within the sector, citing a marked improvement in the remittance of contributions. Notably, URBRA’s supervisory actions in 2023 led to the recovery of UGX 26 billion, safeguarding the interests of savers and ensuring the integrity of the retirement benefits system.
Highlighting key indicators of sector growth, Minister Lugolobi pointed to an increase in both the number of individuals saving for retirement and the total sector assets. The sector witnessed a rise in total assets from UGX 20 trillion in 2022 to UGX 22 trillion in 2023, reflecting prudent investment practices and a robust regulatory framework. The minister also said there has been a notable increase in the number of people saving for retirement, rising from 3,015,807 in 2022 to 3,142,311 in 2023. Additionally, the number of employers making voluntary contributions has also grown, from 273 in 2022 to 298 in 2023. This trend suggests that a greater number of Ugandans will have access to a source of income during their retirement years.
Moreover, the minister emphasized the sector’s significant contribution to national development, with domestic savings playing a crucial role in government borrowing through bonds and securities. In 2023, the retirement benefits sector accounted for 60 percent of gross domestic savings, demonstrating its substantial impact on the economy.
Addressing the challenges facing the sector, Minister Lugolobi stressed the importance of collaborative efforts to sustain positive growth trends. He highlighted the need for addressing issues such as delayed payment of benefits, compliance with financial reporting requirements, and managing operational costs to optimize returns for savers.
In conclusion, Minister Lugolobi urged stakeholders to engage with the comprehensive information presented in the report, emphasizing its relevance to both existing savers and individuals contemplating retirement planning. He reassured the public of the sector’s effective regulation and the safety of their savings, underscoring the patriotic contribution of saving towards national development.
The minister extended his appreciation to the Board of Directors and the CEO of URBRA for their unwavering commitment to steering the retirement benefits sector towards greater accountability and prosperity. As the sector continues to evolve, Minister Lugolobi affirmed the government’s dedication to ensuring a secure and sustainable retirement benefits system for all Ugandans.
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