Analyzing Uganda's 2023/2024 Annual Budget: Implications for Insurance and Expectations from Industry Players

Today, Uganda's Government has unveiled its revised budget for the FY2023/2024, featuring an increased budget of Sh52.7 trillion, an increment of Sh4.6 trillion from last year's budget of Sh48.1trillion. This additional amount demonstrates the government's dedication to promoting economic growth and stability. In the previous financial year, the highest allocations were made to the Human Capital Development and Governance, and Security Programs. Let's examine the importance of insurance within the sectors covered by the budget.

Human capital development looks at four aspects namely education, health, water and environment, and social development and the right insurer can secure these investments to last for generations. Liberty Uganda is well placed to cover pertinent areas for the education sector by insuring school and university establishments against natural and accidental perils. The Makerere University Ivory Tower fire is fresh in all our minds and the establishment would rest easy knowing insurance will foot the bill for all repairs.

With regards to the health sector which received an allocation of Sh3.72 trillion to upgrade 43 regional Health Centre and construct 17 health centers in sub-counties last financial year, the most important question is how many of these are insured? Well, sadly it is a dismal amount and we have all seen the shoddy state that these facilities as well as the disposal of million-dollar equipment provided to them. Now if all facilities had to have insurance before operational licenses were issued, this would be such a benefit to the government as well as Procurement agency at large that would save on new acquisition and building repair costs. But also, you can have your medical insurance sorted with Liberty Life for your peace of mind through the hustle and bustle.

Social Development looks at our people and we should be cognizant of the needs for systems in place to mitigate risks to the population. Insurance policies such as Workers Compensation, Group Personal Accident, Medical Insurance and Group Life Assurance not only to protect them from the adverse effects of accidents by providing compensation but also by providing a buffer when the financial strings are tight. Last but not least, to protect our environment, the artificial water establishments set up every year all around the country i.e. boreholes, multitudes of them are currently non-operational due to damages that would easily be repairable.

Insurance plays a pivotal role in safeguarding infrastructural developments made by the Ministry of Works by protecting them against unforeseen risks such as natural disasters. For instance, the repairs to the River Katonga bridge that recently collapsed due to devastating flash floods could have been covered if it was insured against Fire and Special Perils. Also, further protection could have been provided through an additional business interruption extension that would cover the financial consequences after the disaster.

The promotion of the manufacturing and industrialization is another priority in Uganda's budget every year. Insurance is indispensable for risk management as government sets up more industrial parks throughout the country. Although private establishments take up spaces and their property are usually insured, damage to these structures is a huge dent in the economic stand of the country. The fire incident at the Grace Foam factory situated in Mbale last year serves as a stark reminder of the importance of insurance.

These are some of the key focus areas and we can clearly see insurance plays such a significant role in driving economic growth and stability across various sectors. Insurance emerges as a fundamental tool for managing risks, safeguarding investments, and fostering resilience within this framework whether it's infrastructure development, healthcare, entrepreneurship, or tourism, insurance coverage provides individuals, businesses, and the overall economy.

As Liberty Uganda, we are focused on the creation of innovative insurance solutions as well as timely servicing of our clients which positively impacts all sectors leading to economic growth for the country as whole. For this, we were recently recognized by the Insurance Regulatory Authority (IRA) at the 2022 Insurance Innovation Awards. Liberty Life Assurance Uganda received the Most Innovative Insurance Solution and Special Judge's Award for our Online Portal for Claims Reimbursements. Liberty General Insurance Uganda was also honored with the Most Innovative Insurance Solution for our Liberty & Jumia Gadget and Electronic Insurance Product.

To know more of which insurance cover is best suited for your business, get in touch with us on: +256414(0312) 233794/803|0312246500 or [email protected] | [email protected].