IFC supporting strong capital markets in Uganda

IFC, a member of the World Bank Group, is helping Uganda develop deep and efficient capital markets to create long-term, local-currency financing to support infrastructure projects, business growth, and job creation in the country.

As part of this support, IFC hosted a Debt Capital Market workshop recently in Kampala with senior representatives from the Bank of Uganda, the Ministry of Finance, the Planning and Economic Development, the Capital Markets Authority, and the Uganda Securities Exchange to discuss challenges and solutions for developing capital markets.

The Governor of the Bank of Uganda, Emmanuel Mutebile said: "Bank of Uganda is interested in seeing a broader range and greater number of equity and debt issuers seeking capital locally because vibrant financial markets play a critical role in channeling resources into productive investment and fostering growth. Moreover, the expansion of local-currency bonds should reduce the cost of local-currency debt."

IFC Vice President and Treasurer, John Gandolfo said: "Deep, vibrant local capital markets are essential for a thriving private sector that creates jobs, innovation, and sustainable economic growth. Developing a liquid, structured bond market in Uganda can provide access to long-term, local currency financing for vital infrastructure, help reduce foreign exchange risks, and diversify sources of funding."

Uganda's domestic debt market is small, and strained with heavy external borrowing, low liquidity, and few listed securities.

IFC supports domestic capital market development by issuing local currency bonds, by providing advice to market participants, and by helping first-time issuers access capital markets.

 IFC is committed to expanding access to local currency to fund local entrepreneurs in the currencies of their revenues.