By Jane Namugula
The Capital Markets Authority of Uganda announced an important development in their financial investment sector. Collective Investment Schemes (CIS) end up managing $1.05 billion in assets under management, their highest point to date.
Uganda has reached a major savings mobilization milestone through this Collective Investment Scheme programs. A CMA quarterly bulletin shows that Collective Investment Scheme AUM grew by 9.6% to reach UGX 3.51 trillion ($952 million) through September 2024.
CIS has become more popular as an investment vehicle in Uganda due to its increasing asset management growth. Different factors driving this growth include strong regulatory demands as well as NSSF midterm fund investments and improving investor knowledge according to the CMA.
The number of CIS investor accounts receiving funding grew substantially by 11.6% since the previous quarter which caused the total number to reach 113,445 accounts by December 2024.
During the year the number of accounts grew by 60.29% starting from 70,771 accounts in December 2023. Ugandan investors are showing more interest in CIS products each year based on the rapid surge in their popularity.
The CMA achieved its goal of popularizing CIS after its promotional activities demonstrated its value as an investment choice. The authority developed multiple programs focusing on raising investor perception and trust in CIS.
The expansion of CIS in Uganda heavily relies on the robust regulatory structure the sector benefits from. The CMA implemented robust protective measures that safeguard market participants besides supporting financial system stability.
The economic value managed by the financial sector across Kenya and Tanzania amounted to $2.44 billion and $1.05 billion respectively. The rise in CIS AUM values within Uganda demonstrates that the country has become increasingly attractive for investment purposes.
According to Capital Markets Authority CEO Josephine Okui Ossiya the country maintains a view of remarkable CIS AUM growth as Ugandans gain awareness about investing through pooled savings vehicles.
Through its mission, the CMA strives toward creating an active innovative financial market that bolsters Uganda’s economic expansion. The organizational body actively supports investor training initiatives to safeguard investor welfare and ensure stability within a transparent market context.
The advancement of Uganda’s investment industry will depend heavily on CIS for saving mobilization and economic growth. The region will find Uganda as its primary destination for investment due to its well-regulated framework coupled with rising investor knowledge.
