What you need to know:
- Government will support policy initiatives to ensure that the private sector accesses alternative long-term financing.
Assets Under Management (AUM) for Collective Investment Schemes (CIS) Managers have more than doubled to Shs1.46 trillion at the end of September 2022, up from Shs69 billion that was recorded in September 2017 according to Capital Markets Authority (CMA).
Speaking at the inauguration of the CMA new board in Kampala yesterday, the State Minister of finance, planning Mr Amos Lugolobi, said the exponential growth indicates that CMA has surpassed this National Development Plan III target three years ahead of the scheduled period.
“I want to task the incoming Board and Management to seek more innovative ways through which businesses can tap into the existing capital raising opportunities in the capital markets.
Government will support policy initiatives and continue to provide the necessary financing to ensure that the private sector is able to access alternative long-term financing sources to finance private investment,” Mr Lugolobi said.
“In reference to Private Equity, through the Presidential CEO Forum, the President asked the CMA to work with the Ministry of Finance to harmonise the taxation regime of the Private Equity Funds. With the continued guidance from the Board, this should reach its logical conclusion,” he added.
He called upon the public to invest in equities as it is currently our major source of financing and funding the country’s developments and investments.
“We do not have so many options for financing our developments apart from looking for options like the Capital Markets Authority. The market is increasingly volatile because those who have been giving us concessional loans are slowly coming out. We must now rely on our people, companies and investors to raise the necessary capital for our investments and developments,” Mr Lugolobi noted.
The outgoing board chairperson, Ms Jacqueline Kobusingye Opondo, who has served for the last ten years says the industry has remained resilient.