When the Government of Uganda launched the pilot phase of Project Okusevinga in December last year, it signaled a renewed effort to boost domestic savings and increase the availability of patient capital for both the public and private sectors.
According to records from the Bank of Uganda (BoU), Uganda’s savings rate currently stands at about 11 per cent of Gross Domestic Product (GDP).
This is significantly below the recommended threshold of 25 per cent, which economists consider necessary to support robust and sustainable economic growth. Low savings limit the availability of long-term capital for investment, constrain private sector growth, and increase reliance on external borrowing.
Bank of Uganda Governor, Michael Ating-Ego, even before the official launch of the project, said it is part of the wider effort of developing retail markets for bonds and equities to enable individual investor participation, along with establishing a robust secondary market.
He has indicated that the introduction of initiatives, project okusevinga, allows savers to invest in diversified government securities, which could reduce the government’s reliance on banks for funding.
“The introduction of products under the Okusevinga project will enable small investors to invest in the Government of Uganda securities with as little as UGX 10,000. These innovations aim to pool resources from the bottom of the pyramid to support wholesale financing for larger national projects.” Said Ating-Ego.
He was delivering a keynote address under the theme “From Financial Liberation to Economic Transformation: Uganda’s Journey Toward Prosperity’ at a forum held at Mestil Hotel in May 20205.
Project Okusavinga is one of the initiatives that is hinged on the implementation of the National Financial Inclusion Strategy 2023-2028. The strategy focuses on deepening savings and credit markets by expanding the usage of diversified financial products and services.
The Bank of Uganda anticipates that “Project Okusevinga” will improve retail investment in bills and bonds. The initiative will enable the buying and selling of government securities on mobile phones using mobile money balances.
Statistics from the Central Bank and the Ministry of Finance show that Uganda has experienced increased access to financial services by the wider population through the proliferation of mobile financial services and products. In the year 2023 alone, the values of insurance and micro-savings amounted to 3.4 billion Shillings and 527.9 billion Shillings, respectively, while the value of microloans disbursed amounted to 1.2 trillion Shillings.
The initiative builds on Uganda’s significant progress in financial inclusion. The FinScope Uganda 2023 Survey indicates that 81 per cent of adults now have access to financial services, largely driven by the widespread adoption of mobile money platforms.
A borrower who asked for anonymity welcomed the new initiative, saying that commercial banks have traditionally frustrated individuals seeking to buy government bonds.
“Banks have been frustrating bidders for the primary market auction by refusing to place your bid and later on turning around to offer you their own bonds with unfair terms aimed at cheating and defrauding. It’s a welcome initiative,” he noted.
Generally, the project okusavinga aims to pool resources from the bottom of the pyramid to support wholesale financing for larger national projects.
Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance, Project Okusevinga targets rural and diaspora savers through low minimum investment thresholds, with the aim of deepening domestic capital markets and strengthening household financial resilience.
Project Okusevinga is being touted as Africa’s first government-owned unit trust scheme, positioning itself not merely as a tool for expanding access to financial services but as a platform for enabling meaningful participation in savings and investment.
Unit trusts, also known as Collective Investment Schemes (CIS), are regulated investment vehicles that pool funds from multiple investors and invest them professionally in diversified assets such as treasury bills, bonds, and equities. In Uganda, unit trusts are regulated by the Capital Markets Authority (CMA).
Speaking at the East Africa Capital Markets Conference in October 2025, Arnold Bagubwagye, Deputy Director, Financial Market Development, Bank of Uganda, said the Okusevinga Project enables Ugandans to invest in government securities directly from their mobile phones, making investment more inclusive and accessible.
“We must also ask ourselves, why don’t we have municipal bonds? Should we be consolidating our efforts or opening up more exchanges? Achieving the tenfold growth strategy will not be possible through traditional financing methods alone; we have to step out of our comfort zones,” he said.
He noted that by leveraging technology, fostering strong partnerships, and creating local solutions, players in the financial sector can unlock new sources of funding and significantly increase Uganda’s GDP.
These schemes allow individuals, especially those previously excluded from the formal banking system, to save and invest in financial markets without requiring large capital outlays or advanced financial knowledge. Project Okusevinga is expected to be rolled out publicly this month.
The ongoing pilot phase involves a limited group of participants and is intended to test the platform’s end-to-end functionality, including registration, investment transactions, and balance inquiries. This controlled rollout aims to validate system performance, enhance consumer safeguards, and refine the user experience ahead of a broader launch.
According to the Ministry of Finance, Planning and Economic Development, the pilot represents “a prudent, phased approach to innovation, ensuring that the platform operates efficiently, securely, and in compliance with regulatory standards before it is publicly made available.”
Project Okusevinga, which will be managed by ICEA Lion Asset Management, is designed specifically for small-scale, mobile-based investments in low-risk money market instruments and government bonds. Its primary objective is to formalise informal savings, particularly among low-income earners and rural populations.
The platform allows users to open an account with as little as 10,000 Shillings and make incremental savings of as low as 1,000 Shillings. This is a significant departure from existing unit trust products in Uganda, which typically require a minimum initial investment of 100,000 Shillings. As a result, many Ugandans who could not afford the lump-sum entry requirement have been excluded from a rapidly growing segment of the financial market, one that currently offers returns of between 11 and 12.5 per cent per year.
Beyond savings, Project Okusevinga enables individuals to directly participate in capital markets using small balances on their mobile phones.
According to Bank of Uganda Governor Michael Atingi-Ego, the platform will allow Ugandans to buy and sell government securities, treasury bills and bonds, directly via mobile money. “This initiative, by the Bank of Uganda and the Ministry of Finance, aims to promote financial inclusion by making these investments accessible to everyday Ugandans,” he said.
The Bank of Uganda and the Ministry of Finance remain confident in the project’s success, citing its focus on unbanked communities, low minimum savings requirements, and the involvement of ICEA Lion Asset Management, an experienced unit trust manager.
If effectively implemented, Project Okusevinga has the potential to transform Uganda’s savings culture, mobilise domestic resources, and provide the patient capital needed to support long-term economic development. One of the most significant ways Project Okusevinga can impact savings is by providing a structured and disciplined savings option.
Government bonds typically require investors to commit funds for a fixed period, which can reduce impulsive spending and encourage long-term financial planning.
For individuals who struggle with maintaining savings, this commitment mechanism can be particularly beneficial. Additionally, the initiative can enhance financial literacy.
As more Ugandans learn about bonds, interest rates, and returns, their understanding of saving and investing is likely to improve. Increased financial knowledge often leads to better financial decision-making and a greater willingness to save through formal channels.
Since government bonds are perceived as low-risk, successful participation and timely returns can improve confidence among first-time investors. This trust may spill over into other savings and investment products, further strengthening the country’s savings culture.
Despite its potential, Project Okusevinga may face challenges that limit its impact on savings. Low incomes and competing household needs mean that many Ugandans may still find it difficult to set aside surplus funds for investment.
Some analysts fear that there is also a risk that the initiative may redirect existing savings rather than create new savings. They say individuals who already save through banks or other instruments may simply shift their funds into government bonds, resulting in minimal net growth in national savings.
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