Absa Bank Uganda has reintroduced its custody services, marking a significant milestone in the bank’s commitment to supporting the growth and development of Uganda’s capital markets.
This strategic move aims to provide institutional investors with secure, efficient, and compliant solutions to safeguard their assets and facilitate seamless investment operations.
Speaking at the launch event, the Managing Director of Absa Bank Uganda, David Wandera, described it as an important milestone for Absa Bank Uganda .
“With Uganda’s capital markets growing and institutional investors seeking secure, efficient, and transparent solutions, we are proud to offer a full suite of custody services that combines global standards with local expertise. Our goal is to empower investors from pension funds to insurers, asset managers, and high-net-worth individuals to safeguard their assets, make informed decisions, and participate confidently in the growth of Uganda’s financial markets,”Wandera said.
Uganda’s capital markets have witnessed notable growth in recent years, driven by regulatory reforms, increased investor participation, and a growing demand for diversified investment products.
According to data from the Capital Markets Authority, the total assets under management (AUM) of regulated fund managers in Uganda reached shs4.78 trillion by the end of December 2024, up from shs4.56 trillion in September 2024, reflecting a 4.7% increase over the quarter.
Government of Uganda bonds accounted for 62.1% of the total AUM, highlighting the dominance of fixed-income instruments in the market.
Furthermore, the Uganda Retirement Benefits Regulatory Authority’s 2024 Annual Report indicates that the pension sector’s assets grew by 18% from shs21.41 trillion in financial year 2022/23 to shs25.4 trillion in financial year 2023/24, accounting for 12% of the country’s GDP. This growth underscores the increasing importance of institutional investors in Uganda’s financial ecosystem.
Absa Bank Uganda’s reintroduced custody services are designed to support the evolving needs of institutional investors, including pension funds, asset managers, and insurers.
These services provide secure safekeeping of assets, timely settlement of local and cross-border transactions, regulatory compliance, corporate actions monitoring, portfolio reconciliations, and transparent reporting. Together, these offerings deliver a trusted, efficient, and comprehensive solution for managing institutional investments.
The custody services target a broad spectrum of institutional investors. These include fund managers involved in collective investment schemes and gratuity funds, pension fund trustees managing occupational pension schemes, and life insurance companies administering umbrella funds, individual retirement schemes, income drawdown funds, and post-retirement medical schemes.
The services are also suitable for Saccos, Shariah-compliant funds, and other long-term institutional investors.
Absa Group is expanding its custody business in Uganda as part of its comprehensive regional strategy, following successful launches in Kenya, South Africa, Ghana, Botswana, Mozambique, and Mauritius. With this development, Uganda is now positioned as an integral market in Absa’s broader initiative to deliver pan-African custody solutions.
Through integration with the wider Absa Custody franchise, the bank will offer clients access to over 80 international markets via a single point of contact, supported by a team of subject matter experts based in Uganda.
David Wandera also highlighted that the bank has made significant investments in technology infrastructure to enable seamless digital integration, secure data handling, and real-time portfolio visibility for clients.
“We have made significant investments in technology to provide a tech-driven solution and are keen to continue leveraging the latest technology to align with the future business demands for seamless execution and efficiency,” Wandera noted.
The reintroduction of custody services aligns with Absa’s strategic objective to support the growth and development of Uganda’s capital markets.
By providing institutional investors with reliable and efficient custody solutions, Absa aims to enhance market liquidity, attract foreign investment, and contribute to the overall stability and resilience of the financial system.