Overview:
The announcement came during the 7th Annual Financial Technology Service Providers Association (FITSPA) Conference, where CMA unveiled a framework that will allow fintech innovators to test new financial technologies under controlled supervision — a move expected to accelerate digital transformation across Uganda’s financial ecosystem.
Uganda’s push to modernize its capital markets and attract tech-driven investment has taken a bold step forward with the launch of the Capital Markets Authority (CMA) Regulatory Sandbox Rules, designed to nurture innovation while maintaining investor confidence and market integrity.
The announcement came during the 7th Annual Financial Technology Service Providers Association (FITSPA) Conference, where CMA unveiled a framework that will allow fintech innovators to test new financial technologies under controlled supervision — a move expected to accelerate digital transformation across Uganda’s financial ecosystem.
According to Josephine Okui Ossiya, the Chief Executive Officer of CMA, the sandbox strikes a balance between innovation and investor protection.
“The Regulatory Sandbox provides a safe, supervised environment for fintech innovators to test new products and business models under CMA’s oversight,” Ossiya said. “It allows direct engagement with the regulator, shapes future policy, and builds investor confidence through transparent experimentation.”
By the time a solution exits the sandbox, she added, it will have undergone rigorous testing to ensure safety, reliability, and market readiness — similar to the Bank of Uganda’s regulatory sandbox model for emerging payment systems.
Ossiya emphasized that the initiative aligns with Uganda’s 10-Fold Growth Strategy, an ambitious government blueprint to expand GDP from USD 63 billion to USD 500 billion by 2040. She said the sandbox will be a catalyst for technology-driven capital mobilisation and long-term investment in Uganda’s economy.
“We have in place a framework that helps innovators move from ideation to market readiness — bridging the gap that often prevents great ideas from commercialisation,” she said.
Through this initiative, CMA aims to unlock opportunities in product innovation, service delivery, financial analytics, and new investor engagement models, ultimately enabling Ugandan innovators to complete the full innovation cycle from concept to market.
Fintechs Poised to Shape Market Growth
Allison Kwikiriza, CMA’s Legal and Board Affairs Manager, noted that Uganda’s innovation landscape is evolving too quickly for traditional regulation to keep pace. The sandbox, she said, provides a structured yet flexible approach that ensures emerging technologies can develop responsibly while protecting consumers and maintaining market stability.
Kwikiriza added that CMA’s long-term vision is to attract more international capital to finance Uganda’s public and private sectors. “Strengthening our fintech ecosystem will ensure innovators can access resources and partnerships to scale sustainably,” she said.
Grace Semakula, CEO of SBG Securities, echoed the importance of fintech integration, saying digital solutions are redefining Uganda’s financial sector.
“Fintechs now have a unique opportunity to position themselves as strategic partners in traditional markets,” she said. “While the equities market has seen some stagnation, the private sector pipeline remains strong — and technology can help unlock that potential.”
Capital Markets Adapting to New Realities
Uganda’s capital markets have seen mixed performance in recent years. While collective investment schemes and unit trusts have expanded rapidly, the Uganda Securities Exchange (USE) remains relatively small, with just 17 listed companies, nine of which are Ugandan and the rest cross-listed from Kenya’s Nairobi Securities Exchange.
To attract new entrants, the CMA and USE have introduced initiatives such as market segmentation to encourage SME participation, offering smaller firms a pathway to raise capital without the full requirements of a main listing.
Bob Musinguzi, Head of Depository at the USE, said one of the exchange’s key goals is to become the preferred platform for investment and capital sourcing in Uganda.
He pointed to USE Edaala, a new unquoted securities platform designed for private companies seeking equity and debt financing.
“Edaala connects companies to professional investors, allows private firms with multiple shareholders to trade shares, and leverages our trading and depository systems for efficient portfolio management,” Musinguzi explained.
Rethinking Investment in the Digital Age
Industry experts believe Uganda’s regulatory sandbox could also change how investors view fintech ventures. Satyajit Trumela, Regional Director of Advisory at Grant Thornton Uganda, urged innovators to be pragmatic amid shifting investor preferences.
“Investors today are increasingly drawn to traditional businesses that are undergoing digital transformation,” Trumela said. “These firms present lower risk compared to untested startups and offer more sustainable growth prospects.”
He added that Uganda’s next phase of financial innovation will depend on partnerships between regulators, investors, and traditional enterprises, blending stability with innovation.
Driving Inclusive Growth Through Innovation
The CMA’s sandbox launch signals Uganda’s determination to transform its capital markets into engines of inclusive growth. By fostering collaboration between regulators, innovators, and investors, Uganda aims to position itself as a regional hub for fintech-driven investment and digital financial inclusion.
As the CMA begins admitting innovators into the sandbox, all eyes will be on how Uganda balances technological disruption with market integrity — and whether this bold experiment will set a precedent for other emerging economies seeking to modernize their capital markets.