About 75% of Uganda’s workforce remains in the informal sector, with the youth and women overrepresented, Michael Atingi-Ego, the Deputy Governor, Bank of Uganda has said.
While Speaking at the at the Inaugural Financial Inclusion and Financial Literacy Forum at the Kampala Serena Hotel in Kampala, Uganda; Atingi-Ego pointed out that there is an urgent need to harness technology to supplement/enable governments efforts to propel the youth, women, micro, small and medium enterprises into the formal financial sectors.
“Data has shown that about 75 percent of Uganda’s workforce remains in the informal sector …while financial inclusion acts from the supply side, providing the financial products and services that people demand, financial literacy makes people aware of what financial services they can demand,” Atingi-Ego said.
He noted that there is need for the public to embrace adoption of digitalization to kindle the demand for financial services, and access to quality and affordable financial products by people at the bottom of the pyramid.
He pointed out that this will enhance innovations on environmental sustainability, social well-being, and governance.
“I would like to draw our attention to issues that threaten the sustainability of our environment and social well-being. This is important because it touches the heart of the activities of those engaged in the informal sector,” Atingi-Ego said.
Ramathan Ggoobi, the Permanent Secretary/Secretary to the Treasury pointed out in his remarks that in terms of the legal and policy framework, the Ministry of Finance has developed the Financial Sector Development Strategy, which brings together and streamlines all efforts pertinent to the financial sector’s contribution to national development.
“This change will provide a significant boost to agency banking, a crucial enabler of financial inclusion in rural areas,
“The introduction of the National Payment Systems Regulations will enhance financial inclusion by bolstering consumer protection, ensuring all those making digital payments are safeguarded,” Ggoobi said.
He pointed out that the government has launched the Parish Development Model, whose financial inclusion pillar is setting up 10,594 new SACCOs across the country, bringing subsistence households into the money economy.