7 out of 10 Ugandans are living above their means

A survey conducted by Financial Sector Deepening Uganda (FSD Uganda), which was sponsored by the Bank of Uganda, aBi Finance, and the Bill and Melinda Gates Foundation, codenamed FinScope Uganda 2023, revealed that 70% of Ugandans spend more than their income.

As seen in the Ugandan newspaper, The Monitor, the majority of working-class Ugandans operate “a personal budget deficit,” which indicates that they need more than they currently earn.

As a result, these individuals have become dependent on family and friends to balance the sheets. They also dip into personal savings to offset the balance. This was hardly the case about 5 years ago.

The poll sampled 3,176 Ugandans, representing about 24.6 million people in the country, of which 17.2 million belong to the aforementioned category.

The data from the findings are classified under financial well-being or health, which highlights a person or family’s financial capabilities and financial security. The financial well-being is divided into four categories, financial management, resilience, goals, and confidence.

According to the Monitor’s report, the last 5 years in Uganda have seen the growth of its adult population, which begins at age 16, grow from 18.6 million to 24.6 million.

Some of the other findings in the survey revealed that the financial struggles in the country have been exacerbated by a lack of appropriate pensions for the elderly, the effects of the COVID-19 pandemic, and external factors such as the Russia/Ukraine conflict.

The report also notes that Ugandan adults have stopped relying on their children for their future, however, 70% of these adults have no long-term plans, and as a result, coupled with a lack of pension, the elderly have become financially vulnerable.

With these statistics, only 11% of Ugandans as indicated by the survey, revealed that are satisfied with their financial situation.