BUSINESS | SAVINGS | KALYEGIRA 

KAMPALA - Ugandans have mobilized savings to a tune of sh1.15trillion, in Assets Under Management by licensed Collective Investment Scheme (CIS) managers. 

According to Capital Markets Authority (CMA), the savings were pooled by the Collective Investment Schemes embraced by individuals, investment clubs, pension schemes, families and friends around Uganda.

The performance has been attributed to good mobilisation from CMA who had the CIS plan in their four–year strategic plan of 2021/22 – 2024/25.

Speaking to the media at Media Centre on Wednesday, Keith Kalyegira the Chief Executive Officer of Capital Markets Authority said: 

“Even though the CIS asset growth is impressive, we encourage more Ugandans to open accounts today, as there were only 32,998 accounts at the end of March 2022 with the five licensed CIS managers up from 26,936 accounts in December 2021. This means the average investment per account is currently Ush34.7 million.” 

He said that the milestone is significant because CIS growth has been much faster than the 20% annual increase that has been envisaged in the third National Development Plan (NDP III). 

It is also sh130b more than the sh1.02trillion target that been set in three years from now at the end of the FY 2024/25.

“Allow me to commend the 32,998 Ugandans who have already decided to save through CIS by opening accounts with the five licensed CIS managers, an improvement of 22.5% from 26,936 in a space of three months; however, we can do a lot better,” Hon. Matia Kasaija, the finance minister said.

The fund managers which include UAP-Old Mutual Financial Services, ICEA Lion Asset Management Limited, Xeno Technologies Uganda Limited, Sanlam Investments East Africa Limited and Britam Asset Managers Uganda are licensed by CMA and savings raised is deposited on custody investment accounts.

As savings improve, the focus of Ugandans should now turn to avenues through which these savings can earn a high return while keeping risk as low as possible.