Finance

Mazima Retirement Plan : a Retirement Saving Plan suitable for the informal sector

Written by Livingstone Mukasa

Tell us a few words about the founders and how the idea came

My name is Livingstone Mukasa, am a seasoned entrepreneur, coach and mentor. I was born and grew up in poverty but broke through by running a successful cleaning business. Over the last decade, I have helped more than 20,000 people start small businesses. I was challenged by some of my students to write a book about preparing for retirement in the Ugandan context (similar conditions in other Sub-Saharan African Countries) and ended up authoring a book “Investing for the Future” that eventually led to starting Mazima Retirement Plan.

Link to online video  

Your products and services 

We offer a Retirement Saving Plan suitable for the informal sector that makes 85% of Uganda‘s workforce with flexible entry, contributions and exits.

Your success factors

  1. Increasing Life Expectancy.
  2. More people (85% or more) are self employed or working in the informal sector and are unable to join the formal pension plans.
  3. Technology especially Mobile Money is making it possible to mobilize small savings at a large scale.
  4. Conducive regulatory environment.

Your factors differentiating and disruptive compared to the existing 

Before we launched in the Ugandan market, it was relatively considered impossible or not economical to serve the informal sector with pension/long term saving plan. With 17 million people in the workforce, the existing players were happy to serve only 2 million. Mazima Retirement Plan has made possible for anyone wanting to save for retirement in Uganda can join and save as per their ability.

Your business model  

We charge $3 as membership on  Entry and 2% on Assets Under Management. We hope to break even on a fund value of $1,000,000.

A few words about your competitors

The Market is dominated by the Mandatory Pension Fund called the National Social Security Fund with 1.5 million Subscribers and a fund of $2 billion but this fund is encumbered by existing laws that do not give it much wiggle room in mobilizing voluntary retirement contributions. There also several insurance companies offering life insurance and in-house provident schemes.

Your website 

www.mrp.co.ug 

About the author

Livingstone Mukasa

Chief Executive Officer/Trustee at Mazima Retirement Plan

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