Overview:
He said the total capital market capitalization as at 31st August 2023 stood at Shs 7.2 trillion, representing only 4.4% of GDP compared to 10.5% of GDP for Kenya, 45.3% of GDP for Mauritius, and 327.6% of GDP for South Africa (equivalent to USD 1.23 trillion).
The Minister of State for Finance-in-charge of General Duties, Henry Musasizi, has said the government of Uganda is working to strengthen capital markets as an alternative source of long-term development finance for both the public and private sectors.
He said the total capital market capitalization as at 31st August 2023 stood at Shs 7.2 trillion, representing only 4.4% of GDP compared to 10.5% of GDP for Kenya, 45.3% of GDP for Mauritius, and 327.6% of GDP for South Africa (equivalent to USD 1.23 trillion).
Musasizi said this implies that our capital markets are not doing well compared to our peers and more work needs to be done.
He said the Government interventions include: establishment of a framework for operationalising the fixed income market, expansion of the Investor compensation Fund, strengthening the dispute settlement mechanism & promoting private equity finance, among others.
“We believe the above proposed interventions shall contribute to the development of capital markets in Uganda,” said the Minister.
He made the remarks at the weekend while officiating at the launch of Cornerstone Asset Managers’ Investment Management Services in Naguru, Kampala.
Musasizi congratulated the company for achieving this milestone and being licensed by the Capital Markets Authority (CMA).
The license authorizes the company to offer financial products such as private wealth management, unit trust funds, and pension management, among others.
Musasizi said this development is in line with the government policy on capital mobilization and financial inclusion.
“Our young population, thriving entrepreneurial spirit, and increasing middle class provide enormous prospects for growth. To fully achieve this potential, we must guarantee that individuals, families, and businesses have access to a wide range of financial solutions that address their needs for security, growth, and long-term prosperity,” he said.