By Our Reporter
Uganda’s capital markets are generally still under developed although there are signs of future growth especially with the coming of a second securities exchange (ALTX Uganda).
Importantly, limited knowledge by potential investors on why and how to invest in capital markets to make a good return remains a challenge. However, those who understand capital markets, despite limited products on market to invest in are making a ‘killing’! It is envisaged that ALTX will introduce derivatives on the market.
Unlike in Kenya, the law in Uganda does not provide restrictions on minimum amount of money to invest, or minimum number of shares to buy. This means low and middle income earners can also invest in capital markets.
Letters to My Younger Self: Winnie Nakimuli—"You Are Worthy Simply Because You Exist"In fact in an earlier interview, Keith Kalyegira, the CEO at Capital Markets Authority (CMA) said an investor seeking dividends should ensure that the number of shares they buy would result into a dividend payment that far exceeds the bank charges associated with remitting dividends to an account (which could be UShs 3,000 to UShs10,000 depending on which bank one banks with).
He explained that a saver could choose to buy shares every month for a period of time (accumulate) or buy into a collective investment scheme which allows for a minimum investment of Ushs100, 000 which enable savers to invest in more than one company through one vehicle.
“…the important thing is not the amount of money invested but the proportion of one’s net worth they are comfortable investing in shares, and how long one is willing to wait for his/her shares to perform,
