Capital Markets Authority Archives

Capital Markets Authority clears buyers to invest in Buildnet’s multi-billion Waterfront Hotel Apartments Munyonyo project

by Brian EmorutCompany News News & Analysis Real Estate & Architecture The Big StoryDecember 12, 2024December 12, 2024

The Capital Markets Authority (CMA) has given Buildnet the go-ahead to proceed with its media advertising content, which the Regulator had earlier disputed.This follows some amendments by Buildnet in the wording of its advertising content that had earlier been published on various platforms.“We have noted that the proposed project taglines no longer include the wording previously identified to be in breach of the Capital Markets Authority Act Cap 64,” CMA’s CEO, Josephine Okui Ossiya, wrote in a letter to Buildnet. In an interview with CEO East Africa Magazine on Monday, Buildnet’s Managing Director, Dr. Ibrahim Semaganda, clarified that Buildnet was not inviting the public to “become shareholders” in its literal sense, which would otherwise require CMA’s approval. He further explained that Buildnet was instead calling potential buyers to own fully Furnished, fully Serviced, and fully Managed Hotel Apartments in its Waterfront Hotel Apartments Munyonyo project, which are available for sale.“This first-of-its-kind investment opportunity comes with a guaranteed monthly rental income of up to USD 1,900 for the first 3 years. This means that the client will be getting such a fixed amount every month, regardless of the occupancy rate of their apartment. This essentially translates to 8.5% of the client’s investment per year for the first 3 years,” Dr Semaganda explains.“The property also appreciates at an estimated rate of 6% per year. Therefore, in 10 years, the property’s value will have almost doubled, i.e. it will be 200% of its original value. Considering the cash that the client will have recouped, almost 100% of their initial investment within this same period, the result is that one will have realized almost 300% value in the 10 years,” he adds.He further said that unlike the traditional model, which frustrates clients with long payback periods of over 20 years, the hassle of acquiring and…

Building Wealth, One Bond at a Time: The Alex Kakande Story.

by Jonathan N. LubwamaNews & Analysis Profiles The Big StoryJune 28, 2024June 28, 2024

On 26th March 2024, there was a poll on X (formerly Twitter) in which 3,794 people voted. The poll was a vote between building a home or buying bonds. At the end of the poll, buying a home edged buying bonds by two per cent. About 1,860 on the poll voted to buy bonds instead of building a home. If this poll was held a couple of years back, bonds would probably not get 10% of the vote and if there was a third option of “What are bonds?”, it would score more than buying bonds itself. Whereas a Twitter poll may certainly not be the most bulletproof measure, it is a testament to the hard work Alex Kakande has done in sensitizing Ugandans, at least on Twitter, about alternative investments like treasury bonds and Unit Trusts in a country that is obsessed with real estate. Alex has become the go-to mouthpiece of treasury bonds in a way that not even intermediaries like Xeno or UAP could have pulled off. His substack newsletter, on which he writes regularly, has clocked over 4,000 subscribers, while on Twitter, he has amassed a following of about 15,000 with a monthly average read of close to 75,000 of his Treasury bonds and Alternative Investments newsletters. But Alex certainly didn’t get thrust into this position by mistake. It is a carefully curated and intentional journey that started on the dusty murram roads of Mateete in Ssembabule, where he was born and grew up under tough circumstances. “I went to a UPE school and did my PLE in 2005. But attending my primary school, I used to sell pancakes and daddies in those weekly markets called “omuburo,” which was my first initiation into money matters and how finance works early on in life. When I got older, I started…

Susan Kitariko and Keith Kalyegira join Airtel Uganda Board

by Muhereza KyamuteteraCompany News The Big StoryApril 4, 2024April 4, 2024

The Board of Directors of Airtel Uganda Limited has, according to Rules 36(2) and 54 of the Uganda Securities Exchange Listing Rules 2021, appointed Mrs. Suzan Mweheire Kitariko as an Independent Non-Executive Director and Mr. Keith Kalyegira as a Non-Executive Director.The appointment took effect on 26th March, 2024.In a statement, Airtel says, Mrs. Suzan Mweheire Kitariko “brings a wealth of experience and expertise in both Telecommunications and strategic leadership having previously served as Regional Manager East Africa, Google Uganda, Head of Strategy and Transversal Projects, Orange Telecom Uganda”.Suzan is currently the General Manager of SICPA Uganda.“Her extensive knowledge and strategic insights will be invaluable as we continue to drive Airtel Uganda Limited’s growth and success,” the telco said, adding that she brings a “fresh perspective and a commitment to upholding the highest standards of corporate governance. Her independence and impartiality will strengthen the board’s oversight and decision-making processes”.Of Keith Kalyegira, the telco said that it will leverage his diverse public and private sector professional background in the oil and gas industry in eastern and southern Africa as well as his “extensive board and strategic advisory experience from various past Board Directorships in public enterprises and retirement beneﬁts funds”.“In addition, he brings valuable insights from the Capital Markets Authority where he served as the Chief Executive Oﬃcer until November 2023. Mr. Keith Kalyegira’s diverse background in institutional development, performance management, corporate governance, and regulation of ﬁnancial markets will contribute to the strategic direction and long-term vision of Airtel Uganda Limited as a publicly listed company,” Airtel said in the statement.“The Board of Directors is conﬁdent that the additional appointments of Mrs. Suzan Mweheire Kitariko and Mr. Keith Kalyegira will be instrumental in driving the Company’s strategy and growth that deliver great customer experiences and shareholder value,” the company concluded.

Q&A: Absa Bank’s David Wandera’s take on the financial markets in 2023 and 2024 and the 6th of February release of Absa’s #AFMIndex2023

by Muhereza KyamuteteraThe Big StoryFebruary 3, 2024February 3, 2024

Ahead of the event, David Wandera FCCA, the Absa Executive Director & Head of Financial Markets discusses the financial markets landscape in 2023 and why it is important for financial markets actors, policymakers and other stakeholders to attend and or follow the release of the #AFMIIndex2024. From your perspective as a key financial markets actor in Uganda, how did Uganda’s financial markets perform in 2023?The Ugandan financial markets performed well – especially when compared to global and regional financial markets. Specifically, the currency remained fairly stable – depreciating less than 2% compared to several other African currencies that depreciated more than 5%. This was despite a high global interest rate environment that typically would result in a flight to safety – which would mean more dollars leave Uganda during the calendar year. In 2023, Uganda was a net recipient of dollars – which contributed to the relative stability of the shilling. Additionally, the recent Primary dealership system continues to thrive in aiding the growth of secondary market volumes over the past 3 years of its existence. We have seen exponential growth in volumes traded on the secondary market which is up over 300% since the inception of the primary dealer system. The latest Absa Africa Financial Markets Index reports that the Uganda local currency government bonds were added to the FTSE Frontier Emerging Markets government bond index which gives good visibility of our local bonds in the offshore space. Which major policy changes were made around the Ugandan financial markets in 2023 and how did these drive the performance of the sector?The gazetting of the Appraised Book Value regulation was a big milestone. It will spur financial institutions to enter into specified financial contracts for risk and liquidity management and further increase the stability, safety and international visibility of the domestic financial markets.#AFMIndex2024 speakers,…

PSST Ggoobi and BoU’s Dr. Atingi-Ego to headline Absa’s #AFMIndex2023 and Economic Outlook Forum

by Muhereza KyamuteteraCompany News News & Analysis The Big StoryFebruary 3, 2024February 3, 2024

Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury (PSST) and Dr. Michael Atingi-Ego, the Bank of Uganda Deputy Governor are headlining this year’s Africa Financial Markets Index (AFMI) Report Presentation and Economic Outlook Forum.Now in its seventh year, the Africa Financial Markets Index (AFMI) is a collaboration between the Absa Group and the Official Monetary and Financial Institutions Forum (OMFIF). Each year, the AFMI assesses 28 African nations on economic development using specific indicators that consider market accessibility, transparency, and openness.Ggoobi who is the chief guest and Dr. Atingi-Ego, the keynote speaker, are both accomplished economists and policy analysts in their own right. They will lead other economic analysts, researchers and business leaders to discuss the findings of this year’s index and its implications on the Ugandan economy in 2024 and beyond. Jeff Gable, the Head of Macro and Fixed Income Research and Chief Economist at Absa Group will present this year’s report. To discuss the findings and implications of the report, will be Dr. Sarah Ssewanyana, the Executive Director of the Economic Policy Research Centre; Patrick Ayota, the Managing Director of the National Social Security Fund (NSSF); Alan N. Lwetabe, (CFA, CAIA, CIPM), the Director Investments at the Deposit Protection Fund of Uganda as well as Dickson Ssembuya, the Ag. CEO and Director, Research & Market Development at Uganda’s Capital Markets Authority.This high-powered session will be moderated by Prof. Samuel Sejjaaka, a partner at Sejjaaka, Kaawaase & Company, Certified Public Accountants as well as Country Team Leader/Principal of the MAT ABACUS Business School in Uganda. David Wandera FCCA, the Absa Executive Director & Head of Financial Markets.The #AFMIndex has become an essential tool and source of insights into the performance of financial markets across the continent for investors and policymakers. The report is a valuable guide into…

Q&A: After 10 years leading Uganda’s Capital Markets Authority, what’s next for Keith Kalyegira?

by Muhereza KyamuteteraCEOs Government Agencies Q + As The Big StoryOctober 30, 2023December 4, 2023

After serving two terms in office, Keith Kalyegira will this December step down. In this interview with CEO East Africa’s Muhereza Kyamutetera, he shares a variety of insights on his time at the capital markets authority, what needs to be done to accelerate the growth of capital markets and what is next after CMA.Let us start with a recap of the last 10 years at the helm of the Capital Markets Authority (CMAs); what would you say were your highs, lows, and key milestones/achievements?I think the main achievement that I’m proud of is the decision we made to focus our public education on collective investment schemes or unit trusts, and the results speak for themselves with the growth that we’ve talked about in several different news articles. The UGX 2 trillion mark has been exceeded. The number of investors, 60,000, has been exceeded. And the industry is at a point where they can now take over their own public education campaigns. I think what they just need to do more is to underline the fact that they are regulated by a strong regulator because that, I believe, will send a strong signal to the public that their money is safe.The second highlight is obtaining a pragmatic understanding of what the capital markets can and cannot do from the perspective of economic management. And I’ll talk about this a little bit later. The downside has been not getting cooperation from some people but those are the travails of leadership, not always shall we obtain cooperation but it’s the job of every leader to be persuasive. The key is that we make sure that the people whom we license or approve have the capacity to sustain their business without recourse or relying on shareholder capital. That, I think, is going to be…

How Abraham Banaddawa is Democratising Investment with Level Africa.

by Jonathan N. LubwamaFintechs ICT Startups The Big StorySeptember 7, 2023September 7, 2023

When Abraham Banaddawa was studying medicine in the USA, he realised he wasn’t going to change much in the world. This realisation made him change courses to Business Administration where he would impact the world as an entrepreneur. After graduating from Florida Southern College, he returned to Uganda and worked as a consultant in finance and wealth management while he figured out his next steps. It was during this period, four years ago, that he started building what would become his wealth management startup Level Africa. “I wanted to open my investment account, and it was very difficult. “Abraham tells CEO East Africa in an interview. “The banks didn’t help me because they had more profitable ventures and I ended up going directly to a person in the know at the Bank of Uganda who helped me to open up one, but the process took two weeks. This surprised me because, in the West, it takes a couple of minutes. This is how I ended up building Level Africa to solve this”. Level Africa is an online marketplace for investment. It is currently a web app. It is a one-stop centre for users to invest in different assets across Africa with different asset managers or directly in the markets, from a single account. “We want to give people safe and convenient access to legitimate and profitable investments in Africa.” Through the web app, a user can finish onboarding and become investor compliant, and then they can build their own custom portfolio. “We are building something similar to Amazon, but for investment”. Level Africa is a web app, and it can be accessed on both mobile and PC devices.The closest comparison to Level Africa is a Nigerian startup Cowrywise and Robinhood is the USA. However, Level Africa’s model is unique. “We are not trying to sell…

Uganda’s Capital Markets Authority (Amendment) 2023 Bill: A Breakthrough in Virtual Assets Regulation.

by Jonathan N. LubwamaICT Industry & Analysis News & Analysis Startups The Big StoryJuly 13, 2023July 13, 2023

On 16th November 2022, the Jinja South East Division MP, Nathan Nabeta Igeme tabled a motion to seek leave of Parliament to table the Capital Markets Bill. Parliament unanimously granted the motion after he attached the draft bill in accordance with procedures. The Final Bill was put together in May 2023, and the clerk to Parliament formally wrote to the Minister of Finance to grant MP Nabeta a certificate of financial implication. “The certificate of financial implications assesses the cost versus revenue of the bill and it is a requirement of every bill as per Section 76 of the Public Finance Management Act 2015 and the Rules of Procedure of Parliament,” says Louis Namwanja Kizito, a lawyer with Pentagon Advocates who worked on the bill. “ Once the certificate of financial implication is received, the bill can then advance to the first reading after which it will be referred to the appropriate committee of parliament” This bill is the first true attempt to finally regulate virtual assets in Uganda, after years of legal ambiguity. Virtual assets, also known as digital assets, are intangible objects or representations that exist in a digital or virtual environment. These assets can be owned, traded, and used within various digital platforms or virtual worlds. They encompass a variety of forms, including cryptocurrencies, virtual currencies, digital collectables, and virtual real estate.One of the most well-known examples of virtual assets is cryptocurrencies. Bitcoin, introduced in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto, was the first decentralised digital currency. Operating on blockchain technology, Bitcoin allows secure and transparent transactions. Ethereum, introduced by Vitalik Buterin in 2015, is another prominent virtual asset. It is a blockchain-based platform enabling the creation of smart contracts and decentralised applications (DApps), with its native cryptocurrency called Ether (ETH).Bitcoin and Ethereum…

August 5 – August 12, 2022: Weekly financial markets review and outlook with Stephen Kaboyo

by CEO ReporterFinance News & AnalysisAugust 12, 2022August 15, 2022

The Uganda Shilling pared losses after struggling for momentum against a bullish dollar. The shilling rally was driven mainly by domestic factors that dented demand. Trading was in the range of 3805/15. In other markets the Kenya shilling was stable trading in the range of 119.25/40, as markets were keenly following the post elections developments.In the bond market, the 2 year and 10 year traded at yields of 14% and 16.25%. On a real yield or currency hedged basis, Government of Uganda bonds continue to offer relatively competitive returns, in view of headwinds facing other asset classes.In global financial markets, the US dollar tumbled on inflation data coming in less hot than earlier feared. In a surprise turn of events, markets took bets on the pace of interest rate hikes after data pointed to inflation peaking.Going forward, markets are looking at the current market advance with skepticism with sentiment that is hardly bullish given the weak fundamentals to support the shilling at the current levels. The streak of gains may not hold for long as outlook is fraught with concern over both global and domestic economic conditions.

July 22 – July 29, 2022: Weekly financial markets review and outlook with Stephen Kaboyo

by CEO ReporterNews & AnalysisJuly 29, 2022July 29, 2022

The perpetual decline of the shilling continued with the unit touching record lows, inching towards the 3900 levels as offshore investors dollar demand coupled by oil importers demand intensified. The exchange rate remains a key variable in Uganda’s economy; therefore, the sustained depreciation will continue to pose serious economic challenges.In most emerging economies, markets made cautious gains as investors mulled over a possible slowdown in the pace of US Federal Reserve rate hike.In the global markets, the US Federal Reserve jacked up its benchmark rate by three quarter of a percentage point in an effort to cool the most intense inflation since 1980’s.The Fed flagging weakening data so far, with US GDP shrinking, vowed not to surrender in the fight against inflation.Looking ahead, depreciation pressure on the shilling along with other emerging market currencies is expected to continue underpinned by the Federal Reserve aggressive stance. The interest rate hike in the US increases the relative returns on dollar investments as a result Uganda is likely see more foreign investment outflows and as a consequence, higher cost of capital and re- pricing of risk in the short term.

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