For Uganda’s Retirement Benefits Sector, the years 2020 and 2021 were a test of resilience, as the Covid-19 pandemic ravaged the global economy and brought many businesses to a standstill. Despite the tough economic circumstances, retirement benefits schemes did not wind up – except for a few that joined umbrellas and those that temporarily suspended member remittances. By the end of 2021, the Sector comprised 65 schemes – with 12 umbrella schemes covering 206 participating employers.

 The sector held up remarkably well, considering projections at the start of the pandemic. In fact, far from being in dire straits, the sector is better capitalised than ever. In the face of the economic upheaval due to COVID-19, the sector assets grew to UGX18.9 trillion in 2022. Martin A. Nsubuga, URBRA Chief Executive Officer, noted during the release of the Annual Sector Performance Report 2020, that despite the negative effects of COVID-19, the sector continues to grow because most Ugandans have become aware of the importance of saving for retirement.

 According to Mr. Nsubuga, the pandemic demonstrated the vulnerability created by living without savings. On the other hand, Covid19 inspired the world to embrace Information Communication Technology, to keep businesses afloat in the face of extended lockdowns and travel restrictions. The retirement benefits sector quickly latched on.

Take the example of Enwealth which has been in operation for more than ten years in East Africa. Brian Bongomin, the Enwealth Business Development Manager notes that they embraced technology, holding financial literacy webinars for customers and encouraging them to continue saving. This helped manage members’ expectations during the pandemic. “This financial literacy aspect really helped members adjust. We didn’t see as much withdrawals as would have been,” Bongomin says. He notes that their clientele shot up from 2000 to about 5000. He explains that despite Covid-19 situation, Enwealth registered new members because through financial literacy webinars, people began to see the importance of saving. Prior to the pandemic, schemes had established trust with their members, thanks to the robust regulatory framework. During the pandemic period, the regulator introduced virtual onsite supervision of schemes which further strengthened members’ confidence that their savings were safe. According to Ms. Mwajumah Nakku Mubiru, a trustee of the URA Staff Retirement Benefits Scheme, the continued supervision alleviated fears and anxieties around safety of funds even as Covid19 ravaged the economy.

Bongomin, notes that building trust in the public goes a long way in times of crisis. He notes that the regulatory frameworks already in place in the sector are good enough for a scheme to thrive if they abide by them. “The regulator is doing a good job for service providers; more effort needs to be driven to awareness so that we can appreciate more of the saving culture”