Liberalise pension sector pronto – Byarugaba
KAMPALA, SEPTEMBER7 – Fast tracking the proposed liberalisation of the pension sector will have positive spinoffs for the broader economy and individual savers, NSSF MD Richard Byarugaba told the Institute of Certified Public Accountants of Uganda’s annual conference that opened in Entebbe earlier today.
Enactment of the Retirement Benefits Sector Liberalization Bill 2011 would engender reforms and growth that would have a positive knock on effect on lending rates bringing relief to the economy.
Equally, reforms would bring new products on the market, allow savers to access their benefits early, in the process stimulating the economy, Byarugaba argued.
“Interest rates have skyrocketed in Uganda because all the liquidity comes entirely from commercial banks. There’s no source of funding for short time financing except the Uganda Development Bank,” he said adding that liberalization would bring the cost of money down because of new products that will come on to the market.