BoU to research on why companies don’t list

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With only 16 companies listed on the Uganda Securities Exchange in a span of 20 years, there is something fundamentally wrong, Bank of Uganda has said.

Speaking at celebrations to mark 20 years of USE, Dr Louis Kasekende, the Bank of Uganda deputy governor, said there should a research to understand the problem that has rendered financial market unattractive.
The findings, he said, will guide financial markets to find the right solution to the problem.
Financial markets including the stock exchange, among others are a fundamental to economic development, therefore their performance will have repo effects on the outlook of the economy.
“Unfortunately, as you may be aware, it is proving very difficult to attract companies to issue securities on the USE,” Dr Kasekende

Through the Uganda Securities Exchange, companies sell shares to the public, through which they mobilse funds for capitalisation.
In his address, the Nairobi Securities Exchange chief executive officer, Mr Geoffrey Odundo noted that there is need for collaboration within East Africa governments to boost performance of financial markets.
“Stock exchange markets need to work with governments [EAC] to ensure that they become the engine that drive alternative sources of income,” he said.

Uganda Securities Exchange (USE) has since marked 20 years in the market. The Exchange was incorporated as a company limited by guarantee on 5th May 1997 and became the 17th stock Exchange in Africa.
According to data, the USE has a market capitalisation of $6b compared to that of NSE which stands at $28.2b.
Mr Paul Bwiso, the USE chief executive officer, said the 20 year journey has been a strong wave of growth and innovation as they seek to attract other companies to list on the exchange.
The stock exchange recently launched an initiative through which it seeks to attract SMEs to list through an auxiliary segment.