The informal sector includes small business owners, boda boda riders, market vendors, freelancers, and other self-employed individuals. Without employer-based pension contributions, many in this group have lacked access to retirement savings, leaving them vulnerable in old age. The Smartlife Flexi scheme, is an affordable and flexible alternative, enabling them to save at their own pace without fixed contribution obligations or penalties.
The National Social Security Fund (NSSF) has
reported a UGX 5 billion collection in the initial three
months of its Smartlife Flexi
savings scheme. This voluntary savings product, introduced in December 2024, allows individuals to
contribute as little as UGX 5,000,
making it particularly attractive to micro-savers in Uganda’s informal sector.
Historically,
Uganda’s social security system has largely catered to workers in the formal sector, who contribute mandatory
through employer deductions. However, the amendment of the NSSF Act
opened the door for voluntary savings,
paving the way for initiatives like Smartlife Flexi.
The Minister of Gender, Labour, and Social Development,
operationalized the regulations, ensuring that workers in the informal sector, who make up nearly 80 percent of Uganda’s workforce could
access structured social security savings.
The informal
sector includes small business owners, boda
boda riders, market vendors, freelancers, and other self-employed individuals.
Without employer-based pension contributions, many in this group have lacked
access to retirement savings,
leaving them vulnerable in old age.
The Smartlife Flexi scheme, is an affordable and flexible alternative,
enabling them to save at their own pace
without fixed contribution obligations or penalties.
While giving an
update about the initiative’s performance, NSSF’s Managing Director, Patrick Ayota, expressed
optimism about the early success of Smartlife Flexi. He emphasized that the high number of micro-savers enrolling
reflects a growing awareness of the importance of long-term financial security.
“The informal
sector has unique financial needs, and Smartlife Flexi provides the flexibility
and affordability they require. The high number of micro-savers shows the
increasing recognition of structured savings for financial security,” Ayota stated in a press release. A closer look
at the numbers highlights the scheme’s impact, 70 percent of
those enrolled in Smartlife Flexi are micro-savers. 50 percent of contributors list business as
their main source of income.
Additionally, Smartlife Flexi has been delivering strong returns,
with an impressive 12.37 percent interest rate
in February 2025 and 12.68 percent in January
2025. These rates outperform
the 10.99 percent average in Uganda’s
retirement benefits sector and even exceed the 10-12 percent returns
from unit trusts, as reported by the Capital Markets Authority.
“The strong
uptake of Smartlife Flexi highlights public trust in the Fund. Our track record
of delivering competitive returns has made this product attractive to many
Ugandans,” Ayota added. The Smartlife
Flexi scheme is open to; All Ugandan citizens aged 16
and above. Non-Ugandans working in Uganda with valid passports. Refugees with
proper identification.
Unlike
mandatory NSSF savings, Smartlife Flexi allows
savers to contribute at their convenience, with the only
requirement being that they must save for a minimum of one year.
