The Independent Uganda: You get the Truth we Pay the Price
However, Kenya leads the region with a significantly higher AUM of US$ 2.44 billion
Kampala, Uganda | JULIUS BUSINGE | Uganda’s Collective Investment Schemes (CIS) licensed by the Capital Markets Authority (CMA) in Uganda surpassed Shs3.85 trillion (US$ 1.05 billion) in assets under management (AUM) as at the end of Dec 2024, marking a significant milestone in the country’s financial landscape.
This growth reflects a 9.6% increase from Shs 3.51 trillion at the end of September 2024 and a notable 63.2% rise from Shs2,357.5 billion recorded in December 2023, according to a CMA report released on Feb.6.
The surge in AUM has been driven by a combination of factors, including a robust regulatory environment that has fostered investor confidence, increased public awareness campaigns by CMA and CIS managers, and the channeling of mid-term savings from National Social Security Fund (NSSF) members into CIS.
Additionally, the number of licensed CIS managers has expanded to seven, contributing further to this growth. These include notable companies such as Britam Asset Managers Uganda Limited, ICEA Lion Asset Management Limited, Sanlam Investments East Africa Limited, SBG Securities Limited, Old Mutual Investment, Cornerstone Asset Managers, and Xeno Technologies Uganda Limited.
At the close of December 2024, there were 113,445 funded CIS accounts, a growth of 11.6% from the previous quarter’s 101,637 accounts.
This marks a substantial increase of 60.29% from the 70,771 accounts reported at the end of December 2023. The growth of these accounts is largely attributed to the expanding awareness of the benefits of investing through CIS, along with the enhanced regulatory safeguards that provide investors with greater trust and protection.
Kenya leads in the region
Regionally, Uganda’s AUM stands at US$ 1.05 billion, comparable to Tanzania, which also reported AUM of US$ 1.05 billion. However, Kenya leads the region with a significantly higher AUM of US$ 2.44 billion.
Despite this, Uganda’s growth is noteworthy, especially given its increasing share of the market relative to its Gross Domestic Product (GDP), which stands at 2.3%, compared to 2.2% in Kenya and 1.5% in Tanzania.
Josephine Okui Ossiya, chief executive officer of the Capital Markets Authority, commented on the positive developments, stating that the continuous growth of CIS AUM shows a growing recognition among Ugandans of the advantages of investing through pooled savings vehicles.
She emphasized that Uganda’s strong regulatory framework plays a key role in boosting investor confidence and safeguarding their investments. She also encouraged Ugandans to engage only with licensed entities to ensure the protection and growth of their hard-earned savings.
