Africa-Press – Uganda. Experts have noted that the increasing demand for market-responsive products is driving the growth of tech-driven solutions in Uganda’s financial sector.
These remarks were made during the 2024 World Investor Week press conference held at the Uganda Securities Exchange (USE) headquarters in Kampala.
Josephine Osiya, Chief Executive Officer of the Capital Markets Authority (CMA), announced significant growth in Uganda’s collective investment schemes, showcasing positive trends in the nation’s financial landscape.
Osiya revealed that the total value of funds raised through these schemes had grown from Shs 2.3 trillion to Shs 3.2 trillion, marking a major milestone in market capitalisation. She attributed this growth to increased public education efforts aimed at raising awareness and encouraging participation in these schemes.
“The results we are witnessing today are a direct outcome of our educational initiatives, which have enabled more people to engage in the investment landscape,” Osiya said.
She also emphasised the role of technology in driving this growth, noting that the integration of tech solutions has facilitated higher participation and efficiency in trading. Recent offerings saw significant oversubscription, highlighting increased investor interest.
“Our use of technology has allowed us to achieve remarkable results, making it easier for investors to engage with the market,” she added.
Osiya further noted that Uganda’s stable economic environment, with controlled inflation and minimal currency depreciation, has bolstered investor confidence, contributing to the market’s strong performance.
“These factors have supported the rising value of shares,” she explained.
Looking ahead, the CMA plans to introduce innovative financial products to boost market participation. Osiya stressed the importance of affordable investment options, particularly for young people and women entrepreneurs.
“We are focused on making investment accessible to all, ensuring that every Ugandan has the opportunity to participate in wealth creation,” she said.
As the financial year draws to a close, Osiya expressed optimism about the future of Uganda’s capital markets. With continued focus on education, technology, and innovative financial products, the CMA is set to drive further growth and inclusivity in the investment sector.
Paul Bwiso, Chief Executive Officer of the Uganda Securities Exchange (USE), echoed these sentiments, underscoring the need to create investment opportunities tailored to young people and women entrepreneurs. He highlighted plans for discussions and forums aimed at engaging these groups, providing platforms for knowledge sharing within the investment ecosystem.
“We are committed to fostering an environment where women can thrive in investment, sharing experiences and solutions that cater to their specific needs,” Bwiso said.
Recent statistics show increasing technology adoption in the investment space, with over 30,200 investors actively using the system daily to place orders and trade shares. Bwiso emphasised ongoing technological improvements at the USE, which are streamlining investor access to the market.
“We are excited about the advancements we are implementing, which will streamline access to the bond market and enhance the overall investment experience,” he noted.
In line with its commitment to innovation, the USE plans to launch a new product in the commodity space through its subsidiary, the Uganda Securities Exchange Commodities Exchange. This initiative will connect farmers directly to the exchange, enabling them to access new financing opportunities.
Bwiso acknowledged the challenges faced by new investors and emphasised the need for continued education and support.
He expressed optimism about the future of the exchange, noting that these efforts are key to creating a more robust investment landscape that accommodates diverse investor profiles.
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