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According to Mr Paul Bwiso, the USE chief executive officer, listed companies have registered improved profitability due to growth in the number of investors, which had for years stagnated at 38,000 investors
There are at least 130,000 investors trading in stocks, according to Uganda Securities Exchange (USE).
Speaking during the admission of Chipper Technologies as stock broker in Kampala on Monday, Mr Paul Bwiso, the USE chief executive officer, said listed companies have registered improved profitability due to growth in the number of investors, which had for years stagnated at 38,000 investors.
“The companies on the stock exchange have registered improved profitability. We want to see more deals in the market. We still need to see increased dealership and reforms,” he said, noting that the number of investors has increased from 38,000 to now 130,000, which with the licensing of Cipper Technologies as a brokerage company promises increase stock trading.
The Uganda Securities Exchange has witnessed slow growth, attracting only 18 listings in its 25 years of existence.
Ms Miriam Ekirapa Musaali, the Capital Markets Authority director legal and board affairs, said a section of equity markets such as the secondary market has remained muted but government was working on reform to increase activity in the bond market.
“We are in the process of amending the Capital Markets Act so that we can have friendlier laws for participants in the market,” she said.
Chipper Technologies, which trades as Chipper Cash, has previously run into trouble with Capital Markets Authority, which in April published a notice warning Ugandans against dealing with the company because it was yet to fulfil regulatory requirements.
However, Mr Dan Tumuramye, the Chipper Technologies managing director, said now that the company has fulfilled all regulatory requirements, it will seek to ease access to financial markets as well as diversifying portfolios.
“Our admission on the USE is a significant milestone. Uganda remains an important hub for us. We are committed to providing a largely underserved demographic access to products to deepen financial inclusivity,” he said.
In March, Mr Samuel Obedgiu, a concerned citizen petitioned CMA over a brokerage license it had issued to Chipper Technologies in 2021 to invest in US stock markets, wondering how Chipper Cash would go ahead to invite Ugandans to invest in its global stocks without issuing a prospectus.
Mr Obedgiu also noted that Chipper Cash had obtained a brokerage license from CMA yet it had not utilised it and was not involved in any brokerage business at Uganda Securities Exchange.
According to Mr Richard Byarugaba, the USE chairman and NSSF managing director, there is need to strengthen capital markets, which in turn, will create capital for Ugandan businesses.