Kampala, Uganda – UAP Old Mutual, in partnership with the Federation of Small and Medium Enterprises (FSME), has hosted a successful financial education session, equipping over 400 SMEs with essential tools for financial resilience.

The event, held at Hotel Africana on November 12, 2024, addressed the significant challenges faced by Uganda’s 1.1 million SMEs, which account for 80% of the country’s GDP. Research shows that only 30% of businesses operate beyond three years, citing limited financial literacy as a key obstacle.

Carolyne Tayebwa, Head of Marketing and Distribution at UAP Old Mutual Insurance, emphasized the crucial role of insurance in SME stability. “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.”

John Walugembe, Executive Director of FSME, reiterated the organization’s commitment to bridging the financial literacy gap among SMEs. “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.”

Apollo Mbowa Kibirango, Financial Literacy Manager at NSSF Uganda, highlighted the importance 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.”

Uganda’s SME sector faces notable challenges, with 1.1 million SMEs accounting for 80% of the country’s GDP, yet only 30% of businesses operating beyond three years. Furthermore, 96% of SMEs lack insurance coverage.