CMA Engages Members of the 12th Parliament on the Strategic Role of Capital Markets in National Development
The Capital Markets Authority (CMA) Uganda recently engaged Members of the 12th Parliament during their induction programme in a strategic discussion on the role of capital markets in driving Uganda’s economic transformation and financing its long-term development aspirations. The engagement, led by CMA Chief Executive Officer Mrs. Josephine Okui Ossiya, highlighted how capital markets can complement traditional financing sources and provide sustainable, long-term capital needed to support Uganda’s ambitious growth agenda.
As Uganda pursues Vision 2040 and the Government’s Ten-Fold Growth Strategy aimed at transforming the country into a US$500 billion economy, the demand for development financing continues to grow. Investments in strategic sectors such as transport infrastructure, energy, housing, agro-industrialisation, manufacturing, tourism, and digital transformation require substantial capital that cannot be financed through public resources and conventional bank lending alone. The capital markets ecosystem presents a unique opportunity to bridge this financing gap by mobilising domestic and international savings into productive investments.
Understanding the Capital Markets Opportunity
Capital markets serve as a platform through which governments, corporations, state-owned enterprises, and private businesses raise funds from investors in exchange for financial securities such as shares, bonds, collective investment schemes, and other investment products. These markets facilitate the efficient allocation of capital by connecting those with savings to those seeking financing for growth and development.
Unlike commercial bank financing, which is typically short to medium-term in nature, capital markets are designed to provide patient, long-term financing that aligns with the lifecycle of major infrastructure projects and large-scale investments. This characteristic makes them particularly suitable for funding national development priorities that require substantial upfront investment and extended repayment periods.
Over the past three decades, CMA Uganda has worked diligently to establish the regulatory framework, institutions, investor protection mechanisms, and market infrastructure necessary to support a vibrant capital markets industry. Today, Uganda’s capital markets continue to evolve into a critical pillar of the country’s financial sector and development financing architecture.
A Market on the Rise
Uganda’s capital markets have registered remarkable growth over recent years, demonstrating increasing investor confidence and market maturity. Between June 2021 and March 2026, domestic market capitalisation on the Uganda Securities Exchange grew from UGX 4.33 trillion to UGX 21.77 trillion, representing a compound annual growth rate of over 40 percent. During the same period, Collective Investment Scheme assets under management expanded from UGX 731 billion to UGX 6.02 trillion, while funded investor accounts increased from approximately 29,000 to more than 220,000.
The successful public offerings of MTN Uganda and Airtel Uganda further demonstrated the growing capacity of Uganda’s capital markets to mobilise large-scale domestic investment. These milestones have not only expanded participation in the capital markets but have also enabled ordinary Ugandans to own shares in some of the country’s leading companies.
Uganda’s progress has also been recognised internationally, with the country ranking among Africa’s leading financial markets according to the Absa Africa Financial Markets Index. This achievement reflects continued improvements in market infrastructure, regulatory oversight, investor protection, and overall market development.
Financing Uganda’s Ten-Fold Growth Strategy
A central theme of the engagement was the critical role capital markets can play in supporting Uganda’s Ten-Fold Growth Strategy. The strategy envisions accelerated economic expansion driven by increased investment in infrastructure, industrialisation, value addition, tourism, technology, and human capital development.
Achieving these objectives requires substantial long-term financing. Capital markets can mobilise patient capital from pension funds, insurance companies, collective investment schemes, SACCOs, retail investors, and institutional investors. These pools of capital are particularly well suited to finance projects whose returns materialise over extended periods.
The discussion highlighted how infrastructure bonds can be deployed to finance strategic projects such as roads, railways, power generation facilities, affordable housing developments, and industrial parks. Such instruments allow governments and project sponsors to raise long-term funds while providing investors with predictable returns linked to national development outcomes.
Furthermore, Uganda can leverage specialised instruments such as green bonds to finance environmentally sustainable projects, sukuk instruments to attract Islamic finance, and diaspora bonds to tap into the significant financial resources of Ugandans living abroad. These innovative financing mechanisms expand the country’s funding options while reducing reliance on traditional borrowing sources.
Supporting Fiscal Sustainability and Debt Management
An important aspect of the discussion focused on how capital markets can contribute to Uganda’s fiscal sustainability objectives.
Well-structured capital market instruments can provide financing solutions that minimise pressure on public finances. Revenue-generating projects financed through project bonds or infrastructure bonds can be structured so that project revenues service the financing obligations. This approach allows critical infrastructure investments to proceed without placing undue strain on government budgets.
Additionally, project-based financing structures can transfer certain operational and performance risks to private investors, reducing the fiscal burden on government while promoting efficiency and accountability in project execution.
Capital markets also enable diversification of funding sources through local currency-denominated securities, reducing exposure to foreign exchange volatility and external debt risks. A deep and liquid domestic capital market provides government and private sector issuers with a stable source of financing supported by long-term domestic investors such as pension funds, insurance companies, and collective investment schemes.
Empowering Citizens Through Investment
Beyond financing development projects, capital markets play a vital role in broadening economic participation and promoting wealth creation among citizens.
The growth of collective investment schemes has made investing accessible to a wider segment of the population. Through unit trusts and other professionally managed investment vehicles, individuals can begin investing with relatively small amounts while benefiting from diversification and professional fund management.
Capital markets also democratise ownership by allowing citizens to invest directly in listed companies and participate in the growth of Uganda’s corporate sector. Through share ownership, individuals can benefit from dividend income and capital appreciation while contributing to economic development.
For communities across Uganda, increased participation in regulated investment products can strengthen savings culture, improve financial resilience, and create pathways to long-term wealth accumulation.
The Critical Role of Parliament
Recognising the strategic importance of capital markets, the engagement underscored the pivotal role Parliament can play in advancing market development.
Members of Parliament were encouraged to champion legislative and policy reforms aimed at strengthening Uganda’s capital markets framework. Areas of focus include modernising capital markets legislation, enhancing investor protection mechanisms, supporting new investment products, and creating an enabling environment for market innovation and growth.
Parliament’s support is also essential in advancing initiatives such as sovereign infrastructure bonds, green financing frameworks, state-owned enterprise reforms, and diaspora investment programmes. These initiatives have the potential to unlock significant capital flows into priority sectors of the economy while enhancing transparency, accountability, and public participation in economic development.
Equally important is Parliament’s role in promoting financial literacy and investor awareness within constituencies. By supporting financial education initiatives and encouraging participation in regulated investment opportunities, legislators can help broaden the investor base and deepen financial inclusion across the country.
Looking Ahead
As Uganda seeks to accelerate economic growth and achieve its long-term development ambitions, capital markets will play an increasingly important role in mobilising the resources required to finance transformation.
The country’s development agenda demands innovative, sustainable, and scalable financing solutions capable of supporting large-scale investments across multiple sectors. Capital markets provide exactly such a platform—connecting savings to investment, mobilising long-term capital, promoting private sector growth, enhancing financial inclusion, and supporting national development priorities.
Through continued collaboration among policymakers, regulators, investors, issuers, and development partners, Uganda can build a deeper and more vibrant capital market capable of unlocking the financing needed to realise Vision 2040 and the Ten-Fold Growth Strategy.
The Capital Markets Authority remains committed to fostering a dynamic, transparent, and inclusive capital markets ecosystem that serves as a catalyst for economic growth and national prosperity, ensuring that every Ugandan has an opportunity to participate in and benefit from the country’s development journey.