Africa-Press – Uganda. Absa Bank Uganda has announced the reintroduction of its custody services, marking a significant milestone in the bank’s commitment to supporting the growth and development of Uganda’s capital markets.
According to officials, the move aims to provide institutional investors with secure, efficient, and compliant solutions to safeguard their assets and facilitate seamless investment operations.
“Today marks an important milestone for Absa Bank Uganda as we reintroduce our custody services. With Uganda’s capital markets growing and institutional investors seeking secure, efficient, and transparent solutions, we are proud to offer a full suite of custody services that combines global standards with local expertise,” said Absa Bank Uganda Managing Director, David Wandera.
“Our goal is to empower investors from pension funds to insurers, asset managers, and high-net-worth individuals, to safeguard their assets, make informed decisions, and participate confidently in the growth of Uganda’s financial markets.”
Uganda’s capital markets have witnessed notable growth in recent years, driven by regulatory reforms, increased investor participation, and a growing demand for diversified investment products.
According to data from the Capital Markets Authority, the total assets under management (AUM) of regulated fund managers in Uganda reached shs4.78 trillion by the end of December 2024, up from shs 4.56 trillion in September 2024, reflecting a 4.7% increase over the quarter.
Government of Uganda bonds accounted for 62.1% of the total AUM, highlighting the dominance of fixed-income instruments in the market.
Furthermore, the Uganda Retirement Benefits Regulatory Authority’s 2024 Annual Report indicates that the pension sector’s assets grew by 18% from shs21.41 trillion in financial year 2022/23 to shs25.4 trillion in financial year 2023/24, accounting for 12% of the country’s GDP. This growth underscores the increasing importance of institutional investors in Uganda’s financial ecosystem.
Absa Bank Uganda’s reintroduced custody services are designed to support the evolving needs of institutional investors, including pension funds, asset managers, and insurers.
The services provide secure safekeeping of assets, timely settlement of both local and cross-border transactions, adherence to regulatory compliance, corporate actions monitoring, portfolio reconciliations, and transparent reporting. These offerings present clients with a trusted, efficient, and comprehensive solution for managing their investments.
The custody services are intended to cater to a wide range of institutional investors.
These include fund managers such as those managing collective investment schemes and gratuity funds; pension fund trustees overseeing occupational pension schemes; and life insurance companies managing umbrella funds, individual retirement schemes, income drawdown funds, and post-retirement medical schemes. Other key targets include Saccos, Shariah-compliant funds, and other long-term institutional investors.
Absa Group is expanding its custody business in Uganda as part of a broader regional strategy, following successful rollouts in Kenya, South Africa, Ghana, Botswana, Mozambique, and Mauritius. This positions Uganda as a vital market in Absa’s drive to deliver pan-African custody solutions.
Through integration with the wider Absa Custody franchise, the bank will enable clients to access over 80 international markets through a single point of contact managed by a team of subject matter experts based in Uganda.
Mr. Wandera noted that Absa has invested significantly in technology infrastructure to support this service offering. The new platform allows for seamless digital integration, secure data handling, and real-time portfolio visibility for clients.
“We have made significant investments in technology to provide a tech-driven solution and are keen to continue leveraging the latest technology to align with the future business demands for seamless execution and efficiency,” he said.
The reintroduction of custody services aligns with Absa’s strategic objective to support the growth and development of Uganda’s capital markets.
By offering institutional investors reliable and efficient custody solutions, the bank aims to enhance market liquidity, attract foreign investment, and contribute to the overall stability and resilience of the financial system.
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