The National Planning Authority (NPA) executive director Dr Joseph Muvawala has urged insurance companies to become more innovative and develop products that respond to the changing needs of Ugandans.
Muvawala said the insurance industry has an important role to play in Uganda’s economic transformation by helping households and businesses prepare for future financial needs.
He was speaking at a breakfast meeting organised by the Insurance Regulatory Authority of Uganda at Kampala Serena Hotel, where he was the keynote speaker.
Muvawala particularly challenged insurers to expand education insurance, saying it could help more families meet the rising cost of educating their children.
“We must invest in education deliberately because Uganda has a huge potential to reduce illiteracy through education insurance,” Muvawala said.
He said Uganda needs a stronger education insurance programme because of the growing population and the increasing number of children entering the education system.
According to Muvawala, parents represent a large potential market for education insurance because many families struggle to maintain their children’s education when faced with financial difficulties.
He said insurance products should therefore be designed to help parents plan for education costs over the long term rather than waiting until school fees become an emergency.
Muvawala said continued investment in education would also help Uganda build the skills needed in emerging areas of the economy.
He cited sectors such as oil and gas, mining and information and communication technology, where demand for specialised skills is expected to increase.
He argued that insurance could help families spread the cost of acquiring such skills over time, particularly where parents may not have enough money to meet education expenses when they arise.
The NPA chief also warned that Uganda’s discovery and exploitation of oil could create economic pressures if the country does not properly manage the expected increase in economic activity.
He referred to South Sudan, where he said the expansion of the oil sector affected other economic activities, including agriculture.
Muvawala said Uganda needed careful planning to ensure that the growth of the oil sector supports rather than undermines other productive sectors.
He also warned that increased economic activity could put pressure on the prices of goods and services, potentially raising the cost of production for businesses and households.
He gave the example of agricultural workers demanding higher payments as the cost of living and production rises.
“I have one of the toughest jobs in this economy, therefore I urge you to support me so that your goals are in line with the National Development Plan IV,” Muvawala said.
NDP IV, which covers the 2025/26 to 2029/30 financial years, focuses on sustainable industrialisation, employment, wealth creation, human capital development and private-sector-led growth. It is also the first five-year plan under the Government’s strategy for achieving tenfold economic growth.
Muvawala also raised concerns about accountability and planning in public institutions, arguing that some of the challenges affecting service delivery are linked to weaknesses in planning.
He cited congestion at Mulago Hospital as an example of the pressures that public institutions face when demand for services grows. [WATCH VIDEO]
Mulago itself currently identifies limited bed capacity and staffing gaps among the challenges affecting service delivery.
Muvawala said Uganda’s long-term economic transformation would require institutions and individuals to make the right decisions and plan for future needs.
He described savings as one of the fundamental solutions to Uganda’s economic challenges and said insurance companies have an important role in encouraging households and businesses to save and protect their financial resources.
He therefore called on players in the insurance industry to move beyond traditional products and develop solutions that respond to the country’s changing economic and social needs.
The Insurance Regulatory Authority (IRA) has in recent years promoted education insurance as part of efforts to improve insurance awareness and uptake in Uganda. The regulator also lists education insurance among its consumer information materials.
