Uganda’s Collective Investment Scheme Assets Surpass $1B Milestone

Uganda’s Collective Investment Schemes (CIS) have reached a historic milestone, surpassing $1 billion (UGX 3.85 trillion) in Assets Under Management (AUM) by the end of December 2024, according to the latest quarterly bulletin from the Capital Markets Authority (CMA).

This marks a significant 9.6% increase from UGX 3.51 trillion at the close of September 2024 and an impressive annual growth of 63.2% from UGX 2.36 trillion at the end of 2023.

The CMA attributes this remarkable expansion to a robust regulatory framework that has fostered investor confidence, a growing awareness of CIS benefits, and the increased participation of mid-term savings from National Social Security Fund (NSSF) members.

The number of CIS managers has also grown to seven, including 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.

Investor participation has surged, with funded CIS accounts rising from 101,637 in September 2024 to 113,445 by the end of December—an 11.6% quarterly increase and a 60.29% annual rise from 70,771 accounts in December 2023.

Josephine Okui Ossiya, CEO of the Capital Markets Authority, hailed the growth, stating: “We continue to see remarkable growth in CIS AUM as more Ugandans recognise the advantages of investing through pooled savings vehicles. The strong regulatory framework has boosted investor confidence by ensuring protection when investing in regulated financial products like CIS funds.”

Despite this milestone, Uganda still lags behind its regional counterparts, with Kenya leading at $2.44 billion in AUM and Tanzania closely following at $1.05 billion. However, Uganda’s AUM-to-GDP ratio of 2.3% now surpasses Kenya’s 2.2%, reflecting the growing role of capital markets in national savings mobilisation.

“The CMA urges Ugandans to invest only in regulated financial products and licensed entities to safeguard and grow their savings.”