Kampala - “We have come from zero to over 50,000 investors to date, because of increased public awareness. We are seeing more people getting involved in the capital markets. I must say the media have contributed a lot in creating this awareness because people read what you write and watch your programs about capital markets,” Katto said.
He was addressing journalists at a press conference to unveil the new logo for Uganda's Capital Markets Authority (CMA) at their office in Kampala, on November 6.
Since its establishment in 1996, CMA has registered tremendous growth and development to put a thriving and attractive market. What started as semi-autonomous regulatory body has so far yielded, investment platforms including, nine companies listed on the Uganda Stock Exchange (USE) with three cross-listed companies.
The listed companies include, Uganda Clays Limited, Stanbic Bank Uganda, British American Tobacco, Kenya Airways, East African Breweries, Development Finance Company of Uganda (DFCU), New Vision Limited, Jubilee Holdings Limited, and Bank of Baroda.
CMA has also endorsed the issuance of over 20 government and three corporate bonds and three funds issued by African Alliance a brokerage firm on the USE.
Market capitalization has also increased by over 7000% from UGX62 billion in 2000 to over UGX5, 307 as of November 6, 2007.
Katto also attributed the growth in capital market investments to increased public awareness campaigns like the CMA Secondary School Challenge, that are carried by its Public Education office. Through the programs Katto said, CMA educates thousands of Ugandans about the benefits of investing and saving in the capital markets. According to him, the awareness, which is carried out in secondary schools, universities, and several public institutions is drawing many Ugandans to invest in the capital markets.
“My colleagues in the public education program say that the questions are changing. People are no longer asking what is it but how can I take part. We think that public awareness is paying off,” Katto said.
Twaha Kaawaase the Chairman of CMA called upon more Ugandans to embrace the new profitable modes of saving as opposed to the conservative ways like stocking goats, cows and poultry, which are common among the rural dwellers. “We believe Ugandans have money. We want to encourage as many Ugandans to invest in stock markets because it pays off,” he said.
Investment in capital markets pays off through dividends, increase in share value and interests earned as a result of deposits or purchase made on bonds, company shares and unit trusts.
CMA plans to start a Financial Literacy Foundation to educate people about the benefits financial services, in association with the banking, Insurance associations and the Uganda Stock Exchange.
