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Kalyegira who was giving an address during the Alternative Investment conference held at Mestil Hotel on Wednesday, 26 April 2023 said pension can be a source of long-term capital for Uganda.
“When we talk about pension funds, we are talking about retirement benefit funds, these are lump sum. This is why the conversation has to come back on the table because there no monthly pension payments to nay retiree. Pension is a source of long-term capital. It is a timely conversation. We should talk about Uganda’s lagging behind regional peers in attracting private equity,” he said.
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David Wangolo, an investments director, Pearl Capital Partners, said Uganda should develop more long-term savings at pension level in order to have resources available for investment productive sectors of the economy.
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“Uganda should develop more long-term savings at pension level and reduce the reduction of the retirement of these savings in lump sum. This means Uganda can have long terms resources that can be put to good use by investing in productive sectors of the economy,” he said.
Wangolo also noted the emergence of private equity in Uganda but the need for a change in boardroom mindsets and increased capital in the industry.
In March 2023, the Public service pension Fund Bill, 2023, was tabled before Parliament. The Bill seeks to among other things commercialise the pension sector. Members of Parliament have however expressed concerns over the Bill saying if passed would destabilise the pensions sector.
In the conference, Joseph Enyimu, the Acting Commissioner of Economic Development, Policy, and Research Department at the Ministry of Finance, Planning, and Economic Development revealed a Government five-year investment plan.
“We have somethings in the pipeline. There’s a fund coming dubbed Investment for industrial transformation and employment which seeks to leverage some private investments in the manufacturing sector. Financing for this is now before Parliament for approval,” he said.
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