President Yoweri Museveni has cautioned traders at Owino Market to be vigilant against fraudulent Savings and Credit Cooperative Organizations (SACCOs). He emphasized the importance of engaging with credible financial institutions to safeguard their investments and savings, warning that many unregulated SACCOs have exploited unsuspecting traders, resulting in significant financial losses.
The President’s warning comes amidst growing concerns about the proliferation of fraudulent financial schemes that target small-scale traders and low-income earners. Many traders have fallen victim to scams in which they are promised high returns on their savings, only to lose their hard-earned money. Museveni urged traders to verify the legitimacy of SACCOs before committing their funds, advising them to work with well-established financial institutions that are regulated by the government.
In a move to bolster financial security for traders, the National Social Security Fund (NSSF) has introduced the Smartlife Flexi Plan. This voluntary savings scheme allows individuals to save flexible amounts, starting from as low as UGX 5,000, with the freedom to determine their own savings timelines and withdrawal periods. The initiative aims to foster a robust savings culture among Ugandans, providing a secure platform for financial growth and long-term financial stability.
Also Read:
NSSF Managing Director Patrick Ayota highlighted that the Smartlife Flexi Plan is designed to cater to the diverse financial needs of Ugandans, offering flexibility without restrictive conditions. He emphasized that the scheme is not only intended for traders but also for informal sector workers who often lack access to formal financial services. This development comes as part of broader efforts to provide reliable financial services to communities, ensuring that traders have access to secure and beneficial savings options that will help them plan for the future.
The introduction of this savings scheme aligns with the government’s commitment to enhancing financial literacy and encouraging responsible saving habits among Ugandans. The government continues to advocate for financial education programs that will help traders and other citizens identify and avoid fraudulent financial entities.
Traders are encouraged to take advantage of such reputable schemes to enhance their financial stability and avoid falling prey to fraudulent entities. Authorities have also called upon law enforcement agencies to crack down on unscrupulous SACCO operators who exploit vulnerable traders. Museveni reiterated his administration’s dedication to ensuring economic empowerment through secure and credible financial avenues.
As Uganda continues to grow its economy, financial security remains a key concern, particularly for small business owners. The government urges all Ugandans to exercise caution and make informed decisions when choosing where to save their money. Further discussions and educational campaigns are expected to be launched to equip traders with the knowledge and resources needed to protect their financial future.
