RETIREMENT BENEFITS SECTOR PERFORMANCE, 2020

1) Introduction
The Sector delivered a solid performance for 2020 in terms of both its operational and financial results despite the COVID-19 pandemic and related restrictions on economic activity. Total assets of the Sector increased by 16.4 per cent during the year 2020 from UGX. 13.2 trillion in 2019 to UGX.15.4 trillion, accounting for 11.1% of the Gross Domestic Product (2019: 10.3%).

Total Sector assets are on account of about 2.8 million member accounts, representing only 18% of Uganda’s working population. The Authority has prioritised extension coverage to informal sector workers.

2) Member Contribution and Payments of Retirement Benefits

In 2020, member contributions increased by 5.3% to UGX. 1,578 billion from UGX. 1,498 billion in 2019. Total benefits paid to members and beneficiaries increased by 13.9% to UGX 655 billion compared to UGX 575 billion in 2019. Accordingly, net contributions were maintained at the UGX 923 billion registered in the 2019 reporting period.

3) Sector Investment Portfolio
The URBRA Investment of Scheme Funds Regulations, 2014 prescribe the East African Community as a
domestic market. As at end December 2020, Uganda maintained the highest concentration of regional diversification of investments at 63.1% of the total sector investments. Kenya, Tanzania and Rwanda
accounted for 25.4%, 11.1% and 0.4% respectively.

The share of government securities increased from 74.30% in 2019 to 76.11% at end 2020 whereas the share of investments in equity decreased to 14.75% in 2020 from 16.06% in 2019. Real estate accounted for 6.36%, fixed deposits 1.78%, corporate debt securities 0.4%, and the balance 0.62% was in other investments.

Income from investments, inclusive of cash income i.e dividends, interest and rent as well as movements in fair values increased by 55.7% from 1,077 billion in 2019 to UGX 1,677 billion in 2020. Yields from fixed income securities were the major source of income to the Sector, accounting for 96.3% of the total comprehensive income. Dividends accounted for 4.6%, while income from associates, rental income and other incomes accounted for 3.4%.

The equity portfolio lost 4.4% of its value majorly on account of depreciating Uganda shilling against
regional currencies. Sector investment generated an average return of 13% during the year, enabling declaration of an average interest of 9.37% to members.

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