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, Absa Bank Uganda, David Wandera said, “Today marks an important milestone for Absa Bank Uganda as we reintroduce our custody services. 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.
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 UGX 4.78 trillion by the end of December 2024, up from UGX 4.56 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 UGX 21.41 trillion in FY 2022/23 to UGX 25.4 trillion in FY 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.
The services provide secure safekeeping of assets, timely settlement of local and cross-border transactions, regulatory compliance, corporate actions monitoring, portfolio reconciliations, and transparent reporting, offering clients a trusted, efficient, and comprehensive solution for managing their investments.
The service targets a wide range of institutional investors, including: Fund Managers (Collective Investment Schemes, Gratuity Funds); Pension Fund Trustees (Occupational Pension Schemes); Life Insurance Companies (Umbrella Funds, Individual Retirement Schemes, Income Drawdown Funds, Post-Retirement Medical Schemes); 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 prior successful launches in Kenya, South Africa, Ghana, Botswana, Mozambique, and Mauritius.
With this development, Uganda is positioned as an integral market in Absa’s initiative to deliver pan-African custody solutions.
In partnership with the broader Absa Custody franchise, the bank will provide clients with access to over 80 international markets through a single point of contact managed by a team of subject matter experts in Uganda.
Wandera added that Absa has made significant investments in technology infrastructure, enabling 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,” he said.
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.