The Capital Markets Authority (CMA) and the Uganda Securities Exchange (USE) have announced a robust performance for Uganda’s capital markets in the first half of 2025, alongside significant advancements in the regulatory framework designed to foster innovation, enhance investor protection, and attract increased capital deployment.
These developments were highlighted at a joint press conference held at the Uganda Business Facilitation Centre.
Mrs. Josephine Okui Ossiya, Chief Executive Officer of the Capital Markets Authority, addressed members of the press, emphasizing the collective efforts driving the positive trajectory of Uganda’s capital markets.
“We are delighted to report on the strong performance and strategic milestones achieved in the quarter ending June 2025,” stated Mrs. Ossiya.
“The CMA remains steadfast in its mandate to promote, facilitate, and develop an orderly, fair, and efficient capital markets industry, creating opportunities for all Ugandans.”
The first half of 2025 saw impressive gains across key market metrics, reflecting growing investor confidence and a stable operating environment:
Macroeconomic Stability: The Uganda Shilling gained 0.4% against the USD and is projected to remain stable with a tendency to appreciate. Core inflation is forecast to average 4.5%–5.0% in FY2025/26, converging towards the 5% medium-term target. Uganda’s GDP growth reached 6.5% in H1 2025, up from 6% in H1 2024, with a medium-term projection of 7%. The average Central Bank Rate (CBR) decreased to 9.75% in H1 2025 from 9.94% in H1 2024.
Index Performance: The USE All Share Index (ALSI) surged by 25.14%, reaching 1,287.64, driven by a rally in cross-listed NSE stocks and improved results from locally listed companies. The Local Companies Index (LCI) also saw significant improvement, gaining 30.42% to 337.97, attributed to strong performance from counters like MTN Uganda, QCIL, Bank of Baroda (BOBU), Umeme, and Stanbic Bank Uganda (SBU).
Market Capitalization: The ALSI market capitalization increased by 28.47% to UGX 28,073.49 Billion, while the LCI market capitalization grew by 22.22% to UGX 13,938.21 Billion.
Trading Activity: Total turnover for the period stood at UGX 38.42 Billion, marking a 0.49% increase compared to H1 2024. Trading volume soared by 68.62% to 446.7 Million shares, and the number of deals increased by 24.81% to 3,903.
Investor Participation: Foreign Institutional Investors accounted for 43% of the total turnover. While overall institutional participation decreased slightly to 72% (from 94% in 2024), participation from local individuals and companies notably increased to 23% and 28% respectively, indicating growing local engagement.
Fixed Income Market: The alternative bond trading platform recorded a cumulative turnover of UGX 34.23 Billion, representing an impressive 216.65% growth. Secondary trades contributed 44.79% of this turnover.
Commodities Exchange: The Uganda Securities Exchange Commodities Exchange (USE CommEx) continues to expand its reach, supporting 6,240 farmers with a 102,000 MT warehouse capacity. The platform has facilitated 16 MT of trades involving 3 farmer groups and 1 broker, supported by 2 banks
The CMA has continued to strengthen Uganda’s regulatory framework, ensuring a robust and investor-friendly environment:
CMA Regulatory Sandbox Guidelines: The Board’s approval of these groundbreaking guidelines positions Uganda at the forefront of financial innovation. The sandbox will provide a controlled environment for testing innovative capital-raising solutions and financial technologies, aligning with the National Development Plan IV and the Government’s Ten-Fold Program to unlock financing for key sectors.
Collective Investment Scheme (Licensing) Regulations 2025: Gazetted in May 2025, these regulations enhance oversight and efficiency for the rapidly growing Collective Investment Schemes sector, which now manages approximately UGX 4.6 trillion.
Collective Investment Scheme (Compensation Fund) Rules 2025: The draft rules have been exposed for stakeholder commentary, demonstrating CMA’s commitment to investor confidence through an additional layer of safety for investors.
Expansion of Dealer Licenses: DFCU Bank Uganda Limited, Housing Finance Bank Uganda Limited, Stanbic Bank Uganda Limited, ABSA Bank Uganda Limited, and Centenary Rural Development Bank Uganda Limited have been approved for Dealer Licenses. These institutions join Standard Chartered Bank Uganda, closing a regulatory gap and ensuring standardized conduct and enhanced investor protection across all entities dealing in securities.
New Custodian and Credit Rating Agency: Centenary Rural Development Bank Uganda Limited was granted a custodian license, expanding options for safe custody of investor assets. Furthermore, ICRA Credit Rating Agency received Uganda’s first credit rating agency license under the CMA framework, a significant step expected to stimulate the growth of Uganda’s corporate debt market.
New Investment Product: The Unit Trust Scheme License was approved for SBG Securities Uganda Limited Fixed Income Dollar Fund, broadening the scope of available investment products.
Partnerships Regulations, 2025 and CMA Licensing and Approval Regulations, 2025: Operationalized earlier this year, these regulations provide a comprehensive framework for Limited Liability Partnerships (LLPs), crucial for boosting private capital deployment. They are expected to significantly increase investment, foster entrepreneurship, create jobs, and enhance Uganda’s competitiveness as a destination for venture capital and private equity funds.
The CMA continues to closely monitor market developments to safeguard investor interests:
MTN Uganda: The CMA assures the investing public that investments in MTN Uganda remain safe following the Extra-ordinary General Meeting approval for the structural separation of MTN Mobile Money (U) Limited from MTN.
Umeme Counter: Developments on the Umeme counter are being closely monitored to safeguard shareholder interests and maintain market confidence.
EABL: EABL has completed its tender offer to buy up to 1.81% of UBL shares at UGX 5,630 each, raising its stake to 98.32%.
Issuer Compliance: The CMA reported on the timely submission of Annual Accounts (10 companies), Interim Accounts (3 companies), and Profit Warnings (4 companies). Six Annual General Meetings (AGMs) were concluded, with five more expected in July 2025.
Launch of the Capital Markets Handbook:
A significant highlight of the press conference was the official launch of the First Edition of the Capital Markets Handbook. This comprehensive document is designed to:
Educate and Create Awareness: Provide clear information on capital markets and products, empowering informed decisions.
Promote Market Development: Showcase opportunities and foster financial literacy.
Serve as a Regulatory and Compliance Guide: Offer an official reference for laws, regulations, and policies.
Enhance Investor Protection: Ensure investors understand their rights and provide mechanisms for dispute resolution.
Act as a Key Reference Material: Be an invaluable resource for research and policy foformulation.
“This handbook is a testament to our commitment to transparency, investor education, and the overall development of a robust and accessible capital market in Uganda,” Mrs. Ossiya concluded. “We encourage everyone to utilize this resource to deepen their understanding and engagement with the capital markets.”
The CMA reaffirms its unwavering commitment to fostering fair and efficient capital markets that contribute significantly to Uganda’s economic development and sustainable growth for the benefit of all Ugandans.
About the Capital Markets Authority (CMA): The Capital Markets Authority (CMA) is a statutory body responsible for promoting, facilitating, and developing an orderly, fair, and efficient capital markets industry in Uganda.
About the Uganda Securities Exchange (USE): The Uganda Securities Exchange (USE) is Uganda’s an approved stock exchange, providing a platform for the trading of equities and fixed income securities.
