New strategy to tackle financial illiteracy among Ugandans

The Uganda Financial Literacy Association (UFLA) has launched a 3-year strategic plan to address financial illiteracy, which hinders socio-economic transformation.

Daniel Ayebare, the Chairperson of UFLA, said that the new strategy will build on the existing milestones the association has achieved. He was speaking at the strategy launch in Kampala on May 30.

Ayebare explained that the strategy aims to reinforce and build UFLA’s institutional capacity, strengthen the association’s partnerships across various sectors, streamline financial literacy content, and more.

“This strategy aims to reach the last person on the ground deliberately,” he told reporters at the launch event.

“We want to build our regional networks to distribute content and strengthen our operating system to achieve the goals embedded in this strategy,” Ayebare said.

He noted that UFLA has 2,500 trained members across Uganda who can conduct financial literacy training programs in 33 languages.

Experts say training people to manage their finances improves spending habits and leads to savings, which are crucial for securing future socio-economic transformation.

Moses Ogwapus, the Commissioner for Financial Services at the Ministry of Finance, Planning, and Economic Development, emphasized the importance of financial literacy because the government and development partners are disbursing substantial funds through various projects and programs.

According to Ogwapus, this money must be well spent to yield tangible results.

One such project is the Parish Development Model (PDM), a wealth creation program launched in February 2022.

In FY2021/22, 7,855 PDM SACCOs in 151 Local Governments were capitalized with Shs72.192 billion; in FY2022/23, 10,585 PDM SACCOs were fully capitalized with slightly over Shs1 trillion; and in FY2023/24, 10,583 PDM SACCOs have been capitalized as of April 2024 with Shs50 million each.