Browsing: Investing in Uganda

USE concedes failure of SME capital mobilising segment, creates new window.

The Uganda Securities Exchange said it has created a Specialised Market known as USE Edaala.

This unquoted securities platform will support companies which do not meet listing requirements on the main exchange to access long-term capital.

The USE currently has 18 companies listed on Main Investment Segment, with only two corporate bonds and more than 34 treasury bonds.

Uganda Securities Exchange has the Growth Enterprise Market Segment (GEM) which has failed to takeoff. USE noted that the segment had attracted low public participation thus forcing it to rethink on a new way through which small and medium sized companies can be revitalized to participate in equity markets before upgrading to publicly listed companies in the stock exchange.

  • The Uganda Securities Exchange has created a Specialised Market known as USE Edaala,
  • The new segment will allow companies to access long term capital through private placements, a wider pool of domestic and

Uganda leads East Africa in ease of access to foreign exchange, according to Absa Africa Financial Market Index 2019.

According to the index, Uganda scored 70 out of 100 points compared to Rwanda with 66, Kenya with 65 and Tanzania with 60. Burundi was not surveyed.

Foreign exchange access continues to be a pillar growth across the African continent.

Also Read: Uganda Umeme secures $70m loan for investment

The Absa Africa Financial Markets Index highlights economies with the clearest growth prospects and evaluates financial market development in 20 countries.

The index seeks to show how economies can improve market frameworks to meet investor expectations and sustainable growth.

“Uganda performs strongly … with almost the same score as top-ranked South Africa. It has a high level of foreign reserves relative to net portfolio investment flows and enough reserves to cover more than four months of imports,” said Mr Jeff Gable, the …