Uganda’s plan to grow its economy tenfold to $500 billion by 2040 will require a stronger insurance industry capable of covering the risks associated with increased investment, production and trade, the National Planning Authority (NPA) has said.
NPA Executive Director Dr Joseph Muvawala made the remarks during the 69th CEO’s Breakfast Meeting, where he discussed opportunities for the insurance sector under Uganda’s Ten-Fold Growth Strategy.
The strategy seeks to expand Uganda’s economy from about $50 billion in 2023 to $500 billion by 2040, with growth centred on four priority areas known as ATMS — agro-industrialisation, tourism development, minerals including oil and gas, and science, technology and innovation.
Muvawala said the four sectors were selected because of their potential to increase production and exports, create jobs, attract investment and accelerate economic transformation.
He said they also present significant opportunities for insurers because expansion across the sectors will create demand for risk-management products covering businesses, assets and operations.
“Insurance is not a service that becomes relevant only after growth has occurred; it is part of the institutional architecture that makes growth possible in the first place,” Muvawala said.
In agro-industrialisation, he said insurance opportunities extend across crops, livestock, irrigation equipment, warehouses, processing facilities, cargo and business-interruption risks.
The tourism sector, meanwhile, can generate demand for property, travel, aviation, marine, public-liability and event-related insurance.
The expansion of minerals, oil and gas activities is expected to require specialised products covering engineering risks, environmental liability, equipment, cargo and operational risks.
The technology and innovation sector also presents emerging opportunities, particularly in cyber insurance, data protection, professional indemnity and technology-related liability cover.
Muvawala said the ability of Uganda’s insurance industry to identify, price, pool and transfer risks would influence the willingness of lenders and investors to finance businesses across the economy.
“When major risks cannot be identified, priced, pooled and transferred, lenders restrict credit, investors postpone commitments, firms hold back expansion and households avoid productive activity,” he said.
He added that the depth of Uganda’s insurance market would therefore have a bearing on the depth of investment in the wider economy.
“For this reason, Uganda must expand its capacity to carry risk at the same pace as it expands investment, production and trade,” Muvawala said.
The NPA said it would support the Insurance Regulatory Authority (IRA), Uganda Investment Authority (UIA), Ministry of Finance, Planning and Economic Development and other institutions in aligning national development priorities with the insurance sector’s strategy.
The comments come as Uganda seeks to mobilise greater private-sector investment under its long-term economic transformation agenda, with insurance positioned as part of the financial infrastructure needed to support businesses undertaking larger and more complex investments.
