Savings Habits, Needs and Priorities in Rural Uganda

This document presents the findings from the nationwide study on rural Ugandans savings habits, needs and priorities. The study was undertaken with the goal of providing financial intermediaries' insights into developing market demand driven savings products, policies and strategies.

The document:

• Studies the savings patterns of the people in rural Uganda and explores their potential capacity to save;
• Identifies the issues which impede saving:
  • The relative priorities people attach to savings services;
  • Their preferences regarding institutional terms and conditions;
  • Other factors (such as income and distance) influencing their ability to save.

The document states that:

• 80% of rural Ugandans save in cash or in kind;
• Most rural Ugandans save in both formal and non-formal organizations though no organizational form has a dominant position;
• There is much more saving in cash and in kind than there is organized saving;
• The most common reasons for saving are planning for medical emergencies, school fees and unforeseen problems.

The document concludes by making recommendations for:

• Linking formal and non-formal organizations to mobilize smaller deposits;
• Targeting male clients (revealed to be good savers);
• Promoting savings and educating would-be savers;
• Introducing saving-up products, expanding services in Northern Uganda;
• Managing liquidity for seasonality;
• Setting appropriate monthly saving amounts based on region.