UAP Old Mutual has in collaboration with the Federation of Small and Medium Enterprises (FSME), held a transformative financial education session for SMES.
The event brought together over 400 Small and Medium Enterprises (SMEs) to explore strategies for financial resilience, with a focus on effective financial management.
The engagement aimed at equipping Uganda’s SMEs with essential tools to strengthen their businesses, achieve financial stability, and promote growth.
Despite their significant contribution to the economy, with 1.1 million SMEs accounting for 80% of Uganda’s GDP, SMEs often struggle to sustain their businesses long-term.
Research from the Uganda Investment Authority (UIA) shows that only 30% of businesses have operated beyond three years, with limited financial literacy cited as a key challenge.
Insurance Regulatory Authority (IRA) data further reveals that while awareness of insurance among SMEs is rising, it remains low, with only a fraction of SMEs insured for more than five years.
A 2021 survey revealed that out of 514 respondents, 96% of the SMEs lacked insurance coverage.
According to Carolyn Tayebwa, the head of marketing and distribution at UAP Old Mutual Insurance, the training aimed to address these gaps, equipping business leaders with critical knowledge and resources to better protect and sustain their enterprises.
“Insurance acts as a vital safety net, offering financial relief in unforeseen circumstances that could otherwise devastate a business. Through embracing diverse insurance products, businesses can recover faster and build a secure foundation for long-term success. Our goal is to help SMEs recognize insurance not as a cost, but as a strategic investment in their future,”Tayebwa said.
John Walugembe, Executive Director of FSME, expressed FSME’s commitment to addressing the financial literacy gap among SMEs, an area crucial to their survival and expansion.
“SMEs greatly contribute to our economy, yet they face significant risks that can threaten their existence. Through financial literacy and partnerships like this with UAP Old Mutual, we equip the businesses with the knowledge to make informed financial decisions,” Walugembe affirmed.
Apollo Mbowa Kibirango, Financial Literacy Manager at NSSF Uganda delved into the role of financial literacy in achieving financial wellness.
“Financial literacy empowers SMEs to make proactive, informed choices that secure not only their businesses but also their families. Building a solid understanding of financial tools, including insurance, ensures that these businesses can have a prosperous future,” Kibirango remarked.
Officials said UAP Old Mutual’s collaboration with FSME reflects its commitment to nurturing financial wellness among Uganda’s SMEs.
As an integrated financial services provider, UAP Old Mutual leverages its expertise across insurance, savings, and asset management to support the development of resilient businesses that contribute to Uganda’s economic growth.