Uganda’s capital markets have demonstrated strong performance and resilience in the first half of 2025, with key market indicators showing positive growth amid a stable macroeconomic environment.
The Capital Markets Authority (CMA) and the Uganda Securities Exchange (USE) made this announcement at a joint press conference held at the Uganda Business Facilitation Centre on Monday July 29, 2025.
The highlight of the event was the launch of the inaugural Capital Markets Handbook — a comprehensive guide aimed at enhancing investor education, promoting compliance, and broadening public understanding of Uganda’s capital markets.
CMA Chief Executive Officer Mrs. Josephine Okui Ossiya commended the industry’s steady advancement and the collective work of market participants.
“The first half of 2025 has shown us what a well-regulated and innovative capital market can deliver. From regulatory breakthroughs to increased local investor participation, Uganda’s capital markets are on a growth trajectory that supports economic transformation,” said Ossiya.
USE CEO Paul Bwiso echoed these sentiments, highlighting improved trading activity, local investor engagement, and the use of technology to broaden market access.
Strong Market Performance in H1 2025
Uganda’s capital markets posted robust performance across several key indicators:
Macroeconomic Stability: The Uganda Shilling appreciated by 0.4% against the USD. Inflation remained within the Bank of Uganda’s target band (4.5%–5.0%), while GDP growth reached 6.5% in H1 2025, up from 6% in the same period in 2024.
Index Growth: USE All Share Index (ALSI) surged by 25.14% to 1,287.64 points. Local Companies Index (LCI) jumped 30.42% to 337.97 points, boosted by strong performance from MTN Uganda, Umeme, BOBU, SBU, and QCIL.
Market Capitalization: ALSI market cap rose 28.47% to UGX 28.07 trillion. LCI market cap grew 22.22% to UGX 13.94 trillion.
Trading Activity: Total turnover reached UGX 38.42 billion, up 0.49% year-on-year. Volume surged by 68.62% to 446.7 million shares; number of deals rose by 24.81% to 3,903.
Investor Participation: Foreign institutional investors accounted for 43% of turnover. Local individual and corporate participation increased to 23% and 28% respectively—up from a combined 6% in 2024.
Bond Market and Technology-Driven Growth
Uganda’s alternative bond trading platform saw remarkable growth, with turnover increasing 216.65% to UGX 34.23 billion. Treasury bill and bond volumes also soared, driven by improved access through digital platforms.
“The bond market has experienced a leap in participation, especially from retail investors accessing the market via mobile money and online platforms,” said Bwiso. “This proves that technology is reshaping market accessibility.”
Major Regulatory Milestones
CMA highlighted several reforms aimed at making Uganda’s capital markets more inclusive, innovative, and investor-friendly:
Regulatory Sandbox Guidelines: Approved in June 2025, this framework allows for controlled testing of financial innovations.
Collective Investment Scheme (CIS) Licensing Regulations: Gazetted in May 2025, regulating an industry now managing UGX 4.6 trillion in assets.
Draft CIS Compensation Fund Rules: Released for public consultation to enhance investor protection.
Dealer and Custodian Licensing: Dealer Licenses granted to DFCU Bank, Housing Finance Bank, Stanbic, ABSA, and Centenary Bank. Centenary Bank also received custodian license.
ICRA Credit Rating Agency became the first licensed rating agency under CMA’s framework.
New Products: SBG Securities Uganda Limited received a license for a Fixed Income Dollar Fund, further diversifying Uganda’s investment offerings.
Operationalized Regulations: The Partnerships Regulations 2025 and CMA Licensing & Approval Regulations 2025 now support Limited Liability Partnerships (LLPs), attracting private capital and fostering entrepreneurship.
Key Market Developments
MTN Uganda: CMA assured investors of the safety of their shares following MTN’s structural separation of its Mobile Money arm.
Umeme: CMA is closely monitoring developments to protect shareholder interests.
EABL’s Stake in UBL: East African Breweries Limited completed a tender offer, increasing its stake in Uganda Breweries Limited to 98.32%.
Issuer Compliance: 10 listed companies submitted annual accounts on time, 4 companies issued profit warnings and 6 AGMs concluded, with 5 more planned for July 2025.
USE’s Technology and Regional Strategy
USE announced enhanced trading systems, allowing investors to buy securities using Visa, mobile money, and other digital payment platforms. The Exchange is also piloting integration with the Bank of Uganda’s Central Securities Depository (CSD) for seamless settlement.
USE further reaffirmed its position in the East African Exchanges Top 20 Index, showing stable performance alongside other regional markets like Nairobi, Dar es Salaam, and Kigali.
Commodities Exchange & ESG Focus
The USE Commodities Exchange has onboarded 6,240 farmers, offering warehousing capacity of 102,000 metric tonnes, and facilitating trade for over 16 MT of commodities.
USE also announced upcoming ESG (Environmental, Social, and Governance) reporting guidelines and hosted masterclasses to train over 50 professionals on sustainability and bonds.
Looking Ahead: Capital Markets Week
The CMA and USE invited stakeholders to participate in the upcoming Capital Markets Week, a two-day regional event expected to convene brokers, regulators, listed companies, and investors from across East Africa.
“We are building not just a capital market, but a catalyst for national transformation,” concluded Mrs. Ossiya.