Govt seeks to turn pension savings into patient capital to drive growth

What the report says

Uganda is looking to expand the role of pension savings in funding economic growth, according to remarks reported by The Observer from an inaugural pensions conference in Kampala. Simon Mulongo, the minister of state for labour, employment and industrial relations, said the country needs higher pension coverage, stronger long-term savings and more credible investment opportunities if it is to support its goal of scaling the economy from about $50 billion to $500 billion by 2040.

Mulongo said Uganda’s transformation would depend on building “patient capital” from domestic savings, with pensions expected to help finance enterprises, jobs, exports and broader economic resilience. He linked that objective to the government’s Tenfold Growth Strategy, which highlights agro-industrial development, tourism, minerals including oil and gas, and science, technology and innovation. He also said pension investments must remain commercially sound, transparent and beneficial to members, rather than being directed into projects simply because they are seen as developmental.

The article says the minister called for stronger governance across the retirement savings system, including competent trustees, better oversight, timely contribution remittances and greater financial literacy. He also said national savings should rise from roughly 20% of GDP to about 40% by 2040. Stanbic Uganda and SBG Securities used the event to present their pension management capabilities, while URBRA urged a structure that preserves savings for long-term investment instead of relying mainly on lump-sum payouts when workers leave employment. The broader significance is Uganda’s effort to deepen domestic capital markets and reduce reliance on short-term funding.