Kampala, Uganda – Uganda’s assets managed under Collective Investment Schemes (CIS) have exceeded UGX 3.85 trillion for the first time, marking a significant milestone in the country’s efforts to mobilize savings.
According to the latest quarterly bulletin by the Capital Markets Authority (CMA), CIS managers held UGX 3.85 trillion in assets under management (AUM) as of December 2024. This represents a 9.6% increase from UGX 3.51 trillion at the close of September 2024.
On an annualized basis, the bulletin indicated that AUM expanded by 63.2% from UGX 2,357.5 billion at the end of December 2023.
The growth in AUM is attributed to a robust regulatory environment that has fostered investor confidence, a public awareness drive by the CMA and CIS managers, an increase in the number of CIS managers to seven, and the investment of mid-term savings accessed by National Social Security Fund (NSSF) members in CIS.
“The strong regulatory framework has boosted investor confidence by ensuring protection when investing in regulated financial products like CIS funds,” said Josephine Okui Ossiya, CEO of the Capital Markets Authority.
“We continue to see remarkable growth in CIS AUM as more Ugandans recognize the advantages of investing through pooled savings vehicles. We urge Ugandans to invest only in regulated financial products or engage with licensed entities to safeguard and grow their hard-earned savings.”
The number of funded CIS accounts also increased by 11.6% to 113,445 in the quarter, with a 60.29% annual growth rate. This brings the total number of accounts to 113,445, up from 101,637 at the end of the previous quarter.
Uganda’s CIS sector has expanded significantly, with seven licensed CIS managers now operating in the country. These managers include Britam Asset Managers Uganda Limited, ICEA Lion Asset Management Limited, Sanlam Investments East Africa Limited, SBG Securities Limited, Old Mutual Investment, Cornerstone Asset Managers, and Xeno Technologies Uganda Limited.
Regionally, Kenya has the highest level of AUM at US $2.44 trillion, followed by Tanzania with US $1.051 billion.
The growth of Uganda’s CIS sector is seen as a positive development in the country’s efforts to deepen its capital markets and promote economic growth.
Experts say the milestone is a testament to the effectiveness of the regulatory framework and the increasing investor confidence in the sector.
Discussion about this post