Thursday, June 15, 2017
President Museveni has called upon Ugandans to embrace collective saving through investment clubs, adding that a saving culture facilitates better access to investments in Uganda’s capital markets.
The President said functioning capital markets in Uganda are not a luxury but a necessity in mobilizing domestic and international resources for national development.
Museveni made these remarks in a speech delivered on his behalf by the Prime Minister Dr Ruhakana Rugunda during the launch of Uganda’s Capital Markets Development Master Plan at Kampala Serena Hotel.
“Over the years, the banking sector has been the main source of financing in supporting the growth of the private sector. Vibrant capital markets are vital in easing the pressure on the banking sector by providing a complementary source of funding; bringing down the cost of capital and ensuring that Uganda has a well- balanced financial system,” the President said.
He applauded the efforts of various stakeholders in reforming the pension sector which has a direct bearing on the success of the capital markets master plan since the capital markets will provide a bridge between the pension sector and entities seeking long term patient financing.
“I also take note of the growth in Uganda’s pension sector with assets valued at approximately Uganda shillings 8trillion which is an indication of increased national savings. Deepening savings is a critical objective in vision 2040 and the National Development Plan II,” Mr. Museveni said.
The President also appealed to private entities and public interest companies such as telecommunications and banks to consider investing with capital markets to complement other sources of funding, as well as sell a part of their shares to Ugandans who have supported their growth as customers, suppliers and employees among others.
He pledged government’s continued support to the undertakings of capital markets and called upon different stakeholder groups to do the same, noting that the successful implementation of the master plan will require resources and close cooperation from them.
The Minister of Finance, Planning and Economic Development, Matia Kasaija commended the master plan, noting that its vision, mission and objectives are aligned to the NDP II.
PM Rugunda(R) launches the Capital Markets Development Master Plan, as the Board Chairman, CMA, Jethro Kavuma(L) looks on at Kampala Serena Hotel (Photo by PMPU)
He called upon the stakeholders in the capital markets to mobilize and sensitize people about the operations of the capital markets.
“We need to mobilize people to understand what capital markets are, their operations and how to save and acquire more money as well as attract investors,” Hon Kasaija said.
The CEO of Capital Markets Authority, Keith Kalyegira said the master plan aims at facilitating easier access to alternative non-bank financing in order to reduce dependency on bank financing, He also noted that the recommendations of the master plan are anchored upon five key pillars namely; making capital markets more effective and efficient, expanding issuance and enabling more capital raising, widening the investor base and choice, enhancing the quality of intermediation and improving the legal, regulatory and supervisory environment.
BY DOREEN NASASIRA