Hello Ugandans,
As Uganda celebrates its 62nd independence today, it is a time to reflect on what true freedom means—not just political independence, but financial independence as well. My thoughts turned to an insightful article by my friend, Prof. Ezra Suruma, who argued that Ugandans will continue to struggle with poverty unless they establish their own bank. His words echo a fundamental truth: there is no greater independence than financial freedom, both for individuals and the country as a whole.
Financial independence means having control over one’s own resources, the ability to make decisions without being swayed by external influences, and the capacity to support one’s needs and aspirations without relying on external aid. Unfortunately, many African countries, including Uganda, remain entangled in a web of dependency due to reliance on foreign aid and loans from global financial institutions. This dependency often comes with strings attached—policies and conditions that might not align with our own developmental needs. For Uganda, accepting these foreign policies sometimes feels like an inevitable compromise because we need the funds they provide.
While aid can support immediate needs, it often comes at the cost of long-term autonomy. In essence, it’s a reminder that while we may have achieved political freedom, financial freedom remains elusive. It’s hard to make independent decisions when economic stability hinges on external support.
One of the key challenges to achieving financial independence lies within our own governance and leadership. Far too often, those in leadership focus primarily on enriching themselves and their close circles. This behaviour trickles down to a culture where public officials pursue personal gains over national interests. It’s disheartening to see this trend, and yet, as citizens, we sometimes continue to honor and revere these leaders despite their focus on self-interest. For Uganda to achieve true financial independence, we must fundamentally rethink how we manage our resources. This involves prioritizing the nation’s long-term prosperity over short-term individual gains. Leaders need to be held accountable, ensuring that their actions reflect the interests of all Ugandans. As citizens, we must demand more transparency, integrity, and a commitment to the greater good. This shift in mindset is not just a moral imperative; it is essential for sustainable growth.
One of the most significant steps Uganda can take toward financial independence is establishing strong, locally-owned financial institutions. Prof. Suruma’s vision of Ugandans owning their own banks is more relevant today than ever. Banks owned and managed by Ugandans, with the primary aim of serving the Ugandan people, would be a game-changer for the nation. It would enable us to provide affordable loans to entrepreneurs, farmers, and small businesses—those who form the backbone of our economy. By providing loans with reasonable interest rates and terms that consider local realities, such institutions could support grassroots entrepreneurship, innovation, and productivity. This would be a significant departure from the high-interest rates often imposed by foreign-controlled banks.
For individual Ugandans, achieving financial independence requires a shift in culture and mindset towards saving and investment. Many Ugandans live paycheck to paycheck, focusing on immediate needs without setting aside funds for the future. This is partly due to economic challenges and limited disposable income, but it is also a reflection of a lack of financial education and planning. Promoting a culture of saving, even in small amounts, can have a transformative effect over time. With the right financial literacy programs, individuals can learn how to manage their money, invest in local enterprises, and build a safety net for times of need. Community savings groups and investment clubs, which are already popular in Uganda, need to rethink of building one economic force (bank) rather than have thousands of investment clubs. There is power in partnerships. These groups could benefit from easier access to credit, better saving mechanisms, and a broader range of investment opportunities.
Investing in financial literacy programs should be a priority understanding concepts like compound interest, diversification, and long-term financial planning can empower individuals to build wealth gradually, ensuring greater financial security for themselves and their families.
Achieving financial independence, whether at the individual or national level, requires sacrifice. It means accepting short-term hardships for long-term gains. It means prioritizing collective prosperity over individual wealth. And it means uniting as Ugandans, putting our country’s interests first. This path will not be easy, but history has shown that nothing worthwhile ever is. There is a time coming, and perhaps it is already upon us, when we must join hands and create the institutions that serve our needs and interests. Establishing our own financial systems and building the capacity to lend to other nations will not only enhance Uganda’s economic position but will also shift how the world views us—as a nation capable of standing on its own feet.
As we celebrate another year of independence, let us not forget that true independence is more than the absence of colonial rule. It is the ability to determine our destiny, both as individuals and as a nation. It’s time to rethink how we use our resources, empower our people, and plan for a future where Ugandans are the architects of their own prosperity.
Until then, stay safe, stay informed and always remember to practice gratitude both for yourself and for the world around you.
SABIITI HERBERT
sabiiti10@gmail.com