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Insurance Sector in Uganda Hit by USAID Funding Halt
By Naomi Namusoke/KMA Updates
The insurance sector in Uganda is facing significant challenges following the decision by former U.S. President Donald Trump to halt USAID support to the country. This move has sent shockwaves throughout the industry, leading to job losses and operational challenges among insurance firms.
Speaking during a breakfast meeting organized by the Insurance Brokers Association of Uganda (IBAU), Christopher Mugisha, a representative from IBAU, highlighted the severity of the impact.
“Many people have lost their jobs as a result of this decision, and the sector has been immensely affected. It’s a situation that continues to challenge us as an industry,” Mugisha remarked.
The insurance sector, which heavily relies on partnerships and support from international bodies, has struggled to cope with the abrupt withdrawal of funding. Several companies are now faced with financial uncertainties and reduced capacity to maintain their workforce.
Despite these challenges, some companies are pushing forward with resilience and innovation. Shakira Mujuni from GA Insurance acknowledged the tough situation but remained optimistic about the company’s future.
“Many Ugandans have been affected by the funding halt. However, at GA Insurance, we are committed to settling all claims and maintaining customer satisfaction. We have introduced new innovations to stay competitive and beat the market despite the odds,” she said.
Mujuni emphasized that the company is prioritizing client claims and leveraging innovative solutions to maintain its market position.
During the same meeting, Paul Muhame, the Chairperson of IBAU, expressed a more positive outlook, highlighting that the sector is still experiencing growth despite the challenges. He announced the upcoming 7th IBAU Conference, set to address pressing issues and discuss strategic approaches to stabilize the sector.
“The insurance sector is still experiencing growth despite the challenges we are facing. The upcoming 7th IBAU Conference will be a platform to discuss innovative strategies to navigate these turbulent times,” Muhame noted.
The insurance sector in Uganda continues to adapt to the aftermath of the USAID funding halt, with industry leaders emphasizing the importance of innovation and resilience. As stakeholders gear up for the 7th IBAU Conference, it is hoped that new strategies will be developed to cushion the sector from further disruptions and secure its growth trajectory.