Shocking details of Ugandans’ saving culture emerged last week showing that over 90 percent hold less than a million shillings on their bank accounts.
Information from the Deposit Protection Fund of Uganda indicated that with over 14 million holders of bank accounts in the country, 93 percent of savers have less than a million on their accounts while the 2 percent have deposits reaching/have more than 10 million shillings on their accounts.
Speaking as a former banker, RX Radio Presenter Olive Najjuma opined that salary payment methods contribute to the poor saving culture.
“For most people that aren't paid through bank accounts, it's so hard for them to get the money, go queue at the bank and make a deposit. Not every bank has the option of depositing money using an ATM card. In Uganda, there's only a few like ABSA, but for most, you have to go into the banking hall which is very inconvenient for many.”
She added that with most banks being situated near shopping malls and supermarkets, people end up spending their would be deposits on home essentials, thus saving next to nothing.
James Onen aka Fatboy, wondering how saving culture could be encouraged, asserted that also the bad economy makes it close to impossible for people to save.
“This could be because the economy doesn't really allow for it. Firstly, you may not be paid that much to have what to save and secondly, everything is so expensive. What's even worse is that Ugandans like to floss. Everyone wants to show that they are doing well, so they will go to the fanciest venues, events, wear fancy clothes and drive fancy cars yet they can’t afford it,” he said.
Olive added that it's the lavish behavior that prompts people to get loans they cannot facilitate to live a life they can’t afford. “Then the bank keeps calling, attaches your property and before you know it, you have nothing,” she concluded.
The Fatboy show is hosted by James Onen aka Fatboy, Olive, Sarah and Lesham every weekday from 6am to 10am on RX Radio.