Government through the Capital Markets Authority is developing the secondary market to facilitate trading of securities and capital raise

KAMPALA - Absa Bank Uganda successfully hosted the 2023 Economic Outlook Forum, where many discussions were made on Uganda’s performance in the 2022 Africa Financial Markets Index at length with key players from both the public and private sectors.

According to Mumba Kenneth Kalifungwa, Managing Director Absa Bank Uganda, the annual forum remains a key platform through which engages stakeholders and the public to raise tough questions, exchange ideas and find pathways towards collective and progressive action.

This year’s forum was a celebratory one, as Absa Bank recognized Uganda’s ranking 4th with a score of 66 in the 2022 index, up from the 6th rank with a score of 60 in 2021 - becoming the first East African country to make it into the top four.

One of the speakers, Keith Kalyegira, CEO of the Capital Markets Authority Uganda spoke to the fact that all the players in the financial system need to find ways to use both domestic and international financial systems to raise market-based financing to create more jobs and improve livelihoods in Uganda. He added that Capital Markets Authority look forward to the day when the fixed money markets will be as transparent as the forex market. Many assume that when you buy a 20yr bond you have to wait for 20yrs to get your money, he added.

"Companies need to be educated that they, from inception, can start as public limited companies if they have a medium to long-term plan of raising market-based financing. And they can tap into other forms of capital without listing shares" , Keith Kalyegira noted.

Keith Kalyegira revealed that government, through the CMA, is developing the secondary market to facilitate trading of securities and raise capital. This is coupled with the development of CIS to raise patient and affordable capital.

Meanwhile, some of the key insights shared by the highly capable lineup of speakers include;

Ramathan Ggoobi, the Permanent Secretary of the Ministry of Finance, Planning and Economic Development welcomed initiatives from the private sector to support evidence-based policy development and in turn help guide the country’s learning from best practices being implemented across Africa and stated the government’s commitment to implementing policies that will help attract climate finance-conscious investors.

Prof. Pamela Mbabazi – the Executive Chair of the National Planning Authority highlighted the need for all the players in the financial markets space – many of whom were present - to be more deliberate in their actions towards having a positive impact on the country’s socioeconomic development. She also acknowledged some of the strides being made in the sector, such as the implementation of digital financial inclusion initiatives like Bank of Uganda’s ‘Project Okusevinga’ – which will allow the public to trade in government securities through their mobile phones.

Patrick Ayota, the Deputy Managing Director of the National Social Security Fund (NSSF) – a majority of whose assets are invested in fixed income and equities across East Africa - emphasized the need to build the capacity of Ugandan savers to increase the fund’s asset base and further secure members’ benefits.

Absa Group remains a firm believer in the fact that a multi-pronged approach is necessary to drive Africa and Uganda forward, and that thriving financial markets offer a viable opportunity that will help us achieve this objective.