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Wednesday,October 28,2020 20:31 PM

Ugandans misinformed on capital markets

By Vision Reporter

Added 25th March 2008 03:00 AM

DESPITE the increasing number of saving and investment opportunities in capital markets, many Ugandans have not seized the opportunity because of the misconception that the sector is only for the rich, Japheth Katto, the chief executive officer of the Capital Markets Authority (CMA), has said.

DESPITE the increasing number of saving and investment opportunities in capital markets, many Ugandans have not seized the opportunity because of the misconception that the sector is only for the rich, Japheth Katto, the chief executive officer of the Capital Markets Authority (CMA), has said.

By Peter Kaujju

DESPITE the increasing number of saving and investment opportunities in capital markets, many Ugandans have not seized the opportunity because of the misconception that the sector is only for the rich, Japheth Katto, the chief executive officer of the Capital Markets Authority (CMA), has said.

The saving and investment opportunities in the capital markets include shares, unit trusts and bonds.

Katto said due to the misconception, many Ugandans were missing out on opportunities to make money.

Addressing students of Makerere University Business School, he said with a minimum of sh100,000 the students can invest in shares or collective investment schemes.

“Instead of buying phones worth sh500,000, exploit the investment opportunities in the sector,” Katto said.

The Uganda Securities Exchange (USE), which is the platform for trading of shares, has nine companies, six of them local, while three are cross-listed from the Nairobi Stock Exchange.

Analysts estimate the current number of investors on the USE at 40,000, which is small compared to Uganda’s population of 28 million people.

Stanbic Bank, which listed early last year, has the biggest number of shareholders at 29,774, but almost half are foreigners.

Uganda Clays has 1,019, British American Tobacco 1,509, Bank of Baroda 1,824, dfcu 3,918 and New Vision 2,130.

Capital markets have been at the heart of development of many economies because they provide savings and investment vehicles.

With aggressive education and awareness campaigns, analysts believe the misconception can be rectified.

Ugandans misinformed on capital markets

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