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Alexander Forbes Quits Uganda :: Uganda Radionetwork
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Alexander Forbes Quits Uganda

The announcement comes as a blow to the efforts to re-organise the pension sector in Uganda. The Johannesburg stock exchange-listed Alexander Forbes has been one of the biggest players managing money for the occupational pension schemes.

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Financial services and pension funds management firm Alexander Forbes limited has quit Uganda, the company announced on Thursday.

“Alexander Forbes Group Holdings Limited will exit its current in-country operations in Uganda. The company is committed to an orderly exit from Uganda and will maintain levels of service and advice to clients,” it said in a statement.

 It said a strategic review had outlined the company’s vision for servicing clients across the continent. The company didn’t state specifically why it was quitting Uganda.

The announcement comes as a blow to the efforts to re-organise the pension sector in Uganda.

The Johannesburg stock exchange-listed Alexander Forbes as one of the biggest players managing money for the occupational pension schemes.

Its exit also is an indicator of the lost faith in government to reform the sector to see more Ugandans save for retirement.

 In 2011, the Uganda Retirement Benefits Regulatory Authority (URBRA) was expected to lead the reforms that would open up the sector to private players that would compete with NSSF for the mandatory contributions.  

This would mean more business to private players like Alexander Forbes. However workers representatives rejected the idea of having NSSF compete with private pension players.

Consequently, the Uganda Retirements bill was shelved after President Museveni said in 2017 that he didn’t see need for private companies to compete with NSSF on mandatory savings.

Another trial for the company came in 2017 when Uganda was in the final stage of cancelling the Rift Valley Railways (RVR) concessionaire. RVR failed to remit money it was deducting from employees to Alexander Forbes for management. This meant a loss of one of the major clients.  

Only about 2.4 million Ugandans out of the working 17 million save for retirement, according to URBRA.

Mandatory schemes and voluntary schemes have an asset base of 11 trillion shillings, and much of this belongs to NSSF.

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