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Government has noted that the poor savings culture amongst Ugandans remains a major challenge to the quest for economic empowerment.
Hon. Ephraim Kamuntu,
Minister of State for Planning described as unhealthy to the economy, the
practice by a large section of Ugandans to save outside streamlined financial institutions.
Kamuntu made the observation while officiating at the launch of dfcu Bank branch in Hoima on July 30th 2009. According to Kamuntu, latest statistics show that Uganda’s Savings to GDP ratio stands at about 15% which he said is a big improvement from -12.60% in 1987 and 2.2% in 1993/94. This however compares dismally with the 30% in Asia and the African continent average of 19%. “This small amount of saving limits banks from providing long term lending needed for developmental projects. This therefore limits growth in investments, which create employment, leads to more revenue collections and ultimately overall economy growth” he said. He urged Ugandans to adopt the culture of saving through the formal financial sector adding that banks should also be proactive in engaging the public.
“Banks on
the other hand should provide more innovative savings products to attract more
people to save. To this end I would like to commend dfcu Bank for being a leader in innovation and for rolling out a
variety of savings products” he added.
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