Ugandans poor at long-term planning – New study

The situation appears to be exacerbated by a rise in unexpected financial challenges. The report notes that in 2023, nine out of ten Ugandans faced unexpected events—a substantial increase from the figures reported five years earlier in 2018. Most of these individuals did not have sufficient income to cover their expenses, pointing to a precarious financial balance that leaves little room for unplanned occurrences.

Sarah Byabazaire, the acting Executive Director of Financial Sector Deepening, elaborated on the findings, stating that the majority of Ugandans are forced to cut back on expenses and rely on personal savings, or support from family and friends to manage financial shortfalls. Moreover, about one-third of Ugandan adults are uncertain about their ability to cover living expenses without resorting to borrowing.

On a more positive note, the study also revealed some improvements in financial management practices among Ugandans. It showed a 14% increase in the proportion of individuals who actively keep track of their income and expenditures compared to previous studies. This uptick suggests a growing awareness of the importance of budget management, even if long-term planning remains a challenge.

The findings of the Fin Scope report serve as a crucial indicator of the need for enhanced financial education and planning services in Uganda. By fostering a culture of informed financial decision-making and supporting the development of accessible financial planning tools, there is potential to significantly improve the financial health and resilience of Ugandan individuals and families. This change is essential not only for personal financial security but also for the broader economic stability and growth of the country.