• Licensing – A Core Regulatory Function in the Capital Markets
    A number of licenses held by the various capital markets intermediaries in Uganda including stock brokers,dealers, investment advisers, fund managers, collective investment schemes and their managers, custodians and securities central depositories will be expiring during the last quarter of this financial year (April-June 2019/20). Consequently,we expect that the intermediary firms, many of whom hold more […]
  • Alternative Sources of Financing: Why Family Owned Businesses in Uganda Should Embrace Private Equity
    Family owned businesses are an important feature in Uganda’s economic landscape,dominating sectors such as manufacturing, education and health. These businesses not only contribute to economic growth through employment creation and paying taxes, but also by encouraging innovation. According to a report by Asoko, 11 of the leading 25 family-owned businesses in Uganda have revenues above […]
  • Capital Markets – a Source of Patient Capital for Business Expansion and Debt Refinancing
    I have said at various fora that there is a lot more capital looking for investments across the world, relative to the pipeline of investment opportunities. The Organization for Economic Cooperation and Development (OECD) estimates this at USD 44 trillion, 66% of which is comprised of pension fund assets. Of the USD 44 trillion, over […]
  • Why Investment Clubs Should Invest in Collective Investment Schemes
    In the past seven to ten years, Uganda has witnessed an explosion of investment clubs. Friends, family members, colleagues at work, former schoolmates and a host of individuals with a common bond have come together to save and invest, as a means of securing their financial future. According to the Investment Club Association of Uganda, […]
  • Sell of listed company shares should be open to all savers
    Over the past few days, a debate has been raging in the traditional and social media space about the rationale for MTN floating shares on the Uganda Securities Exchange. This followed an appeal by President Museveni to the MTN Group to work towards the listing of MTN on the local bourse in order for Ugandans […]
  • Pension reform will save ordinary Ugandans from old age poverty
    The 2014 census results indicate that Uganda has a labour force of 16 million people. By the end of 2015, only 757,179 Ugandans were actively saving with the National Social Security Fund (NSSF) – a mandatory savings scheme for all employees in full time employment other than civil servants. 2015 estimates indicate that there were […]
  • Five Reasons Why Capital Markets Matter in Africa
    The significance of developing domestic capital markets as a means of financing priority sectors and driving economic development is increasingly being acknowledged by policy makers in Africa. For instance, the African Union (AU), Agenda2063, prioritises the development of capital markets on the continent to strengthen domestic resource mobilisation and double its contribution to development financing. […]
  • The shareholder’s role in an annual general meeting
    On 10th May, British American Tobacco Uganda Limited (BATU)and Stanbic Bank Uganda Limited (SBU) will hold their Annual General Meeting (AGM) and on 11th May, Umeme Limited will hold theirs, all here in Kampala. My past attendance of several AGMs, specifically of companies listed on the securities exchange in Uganda has continuously made me wonder […]
  • Sukuk Bonds: An Alternative Source of Long Term Capital for Uganda
    The Capital Markets Authority will soon launch a ten year Capital Markets Development Master Plan. The plan is an industry-wide blue print that will provide a road map to firmly position Uganda’s capital markets as a cost-effective and efficient source of long term capital which will be required to support the national development agenda. With […]
  • Exciting times ahead for Uganda’s capital markets
    The capital market is a crucial component of the economy that channels personal or pooled savings to public or private enterprises, or governments in need of long term capital. This capital is used to generate economic output, thus supporting development and creating wealth. Domestic market capitalization, which is the market value of Ugandan companies listed […]
  • Why Uganda must expedite pension reforms
    It was recently reported that the bill to reform Uganda’s pension sector is due to be discussed by the relevant parliamentary committee this month, having been returned to the house following the end of the term of the 9th parliament. It is essential for Parliament to consider reforms in our national pension laws if Ugandans […]
  • Uganda’s Capital Market in view of the EAC integration
    Introduction The capital markets are a platform where individuals and institutions, both local and foreign that have excess funds meet entrepreneurs who are looking for long term patient capital for investment. In this market, instruments known as securities (shares, bonds etc.) are exchanged for capital by the entrepreneurs. The capital markets are an important component […]
  • Comparing Uganda’s Stock Market Performance with Bank Deposits and Government Bonds
    Financial theory teaches us that over time, share markets should deliver better returns to the investor than bank deposits and government paper. This is due to the fact that investment in shares entails more risk than investment in bonds and fixed deposits which offer fixed rates of return and are perceived to be less risky. […]
  • Interest rate determinants and the Ugandan banking story
    Recently, I took part in a dialogue organized by the Uganda Bankers Association (UBA) and the Civil Society Budget Advocacy Group (CSBAG), who have called for legislative action leading to the capping of rates. The UBA had previously called for structured dialogue on the issue of high interest rates and this meeting was probably for […]
  • Government Bailout: Distressed Companies Should Utilize the Capital Markets
    Several indigenous Ugandan companies and businesses are on the verge of losing, or have already lost, tangible assets which they used as collateral for securing bank financing.  These companies are now reportedly seeking for bailouts from the government to stabilize their financing structure. A myriad of factors including inter alia, high commercial bank interest rates, […]