Campaign to boost saving, investment culture starts

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By Jonathan Adengo

Kampala.

Dfcu Bank, in partnership with NTV Uganda and Pricewaterhouse Coopers (PwC) have launched a nationwide campaign targeted at driving a saving and investment culture in Uganda.

The campaign, which will run, in part, as a TV show competition Battle for Cash, was launched at the Kampala Serena Hotel last week with the media fraternity having the first hands-on experience.

Compared to other countries in the region, Uganda has the lowest savings to Gross Domestic Product (GDP) ratio, at 13.48 per cent of GDP with majority of the population being un-banked.

According to the Uganda Bureau of Statistics, only 12 per cent of the population have bank accounts while research shows that Ugandans save less than 5 per cent of their monthly earnings as compared to other East African countries (Kenya 23 per cent Tanzania 13 per cent Rwanda 18 per cent).

The low saving rates are largely a result of traditional banking remaining out of reach for most due to factors such as; inadequate financial services; financial illiteracy; physical distance from banking institutions and high minimum deposit and balance requirements, limiting access to banking services.
As part of several efforts to promote a savings culture in Uganda, dfcu Bank introduced the Investment Clubs Programme in 2007 to foster group savings.

The dfcu Bank programme has since grown with more than 10,000 clubs that cut across all segments including students, the professionals, women, youths holding a savings turnover of more than Shs400 billion.

It is against this background that the bank has collaborated with NTV and PwC to start a competition to encourage its customers to grow their savings portfolio. The ‘Battle for Cash’ challenge will provide a free platform to investment clubs to showcase their success stories over a period of six months.

Additionally, clubs that present innovative investment ideas and demonstrate the ability to consistently pool savings towards the realisation of their objective for a minimum period of six months will be eligible to enter the competition. They will have the opportunity to show case their ideas and investment projects on NTV Uganda.

According to dfcu Bank executive director and chief of business William Sekabembe, two special categories of women and youth have been included. Clubs with 100 per cent composition of these special groups will apply to enter the competition and into a special category for women clubs and youth increasing their chances of winning.

“We are putting a lot of emphasis on these two categories because we believe they play a major role in the development of communities and Uganda as a whole,” he said.

Monitor.co.ug

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