Absa Bank Uganda has reintroduced its custody services in a move that underscores the bank’s commitment to deepening Uganda’s capital markets. The development provides institutional investors with secure, efficient, and compliant solutions to safeguard their assets while enabling seamless investment operations.
A Strategic Milestone for Uganda’s Markets
Speaking at the launch, David Wandera, Managing Director of Absa Bank Uganda, described the development as a significant milestone for the bank and the country’s financial system.
“Today marks an important milestone for Absa Bank Uganda as we reintroduce our custody services. With Uganda’s capital markets growing and institutional investors seeking secure, efficient, and transparent solutions, we are proud to offer a full suite of custody services that combines global standards with local expertise. Our goal is to empower investors from pension funds to insurers, asset managers, and high-net-worth individuals, to safeguard their assets, make informed decisions, and participate confidently in the growth of Uganda’s financial markets.”
Rising Investor Participation
Uganda’s capital markets have expanded steadily in recent years, buoyed by regulatory reforms, stronger investor participation, and demand for diversified products. According to the Capital Markets Authority, the total assets under management (AUM) of regulated fund managers in Uganda reached UGX 4.78 trillion by December 2024, up from UGX 4.56 trillion in September 2024, reflecting a 4.7% quarterly increase. Government bonds accounted for 62.1% of the total AUM, demonstrating the continued dominance of fixed-income instruments.
At the same time, the Uganda Retirement Benefits Regulatory Authority’s 2024 Annual Report showed that the pension sector’s assets grew by 18%, rising from UGX 21.41 trillion in FY 2022/23 to UGX 25.4 trillion in FY 2023/24, equivalent to 12% of GDP. This underscores the growing importance of institutional investors in the country’s financial ecosystem.
Comprehensive Custody Solutions
Absa Bank Uganda’s reintroduced custody services are designed to support the evolving needs of institutional investors, including pension funds, asset managers, and insurers. The services provide secure safekeeping of assets, timely settlement of local and cross-border transactions, regulatory compliance, corporate actions monitoring, portfolio reconciliations, and transparent reporting, offering clients a trusted, efficient, and comprehensive solution for managing their investments.
Target clients include fund managers (collective investment schemes, gratuity funds), pension trustees (occupational pension schemes), life insurance companies (umbrella funds, retirement schemes, income drawdown funds, post-retirement medical schemes), Saccos, Shariah-compliant funds, and other long-term institutional investors.
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Regional and Global Reach
The reintroduction in Uganda forms part of Absa Group’s broader regional strategy. Similar services have been successfully launched in Kenya, South Africa, Ghana, Botswana, Mozambique, and Mauritius. With this expansion, Uganda now joins the network, giving investors access to over 80 international markets through a single point of contact in Kampala, managed by a team of subject matter experts.
According to Wandera, Absa has invested heavily in technology to back these services.
“We have made significant investments in technology to provide a tech-driven solution and are keen to continue leveraging the latest technology to align with the future business demands for seamless execution and efficiency,” he said.
Aligning with Absa’s Strategic Objectives
The move aligns with Absa’s long-term strategy to bolster Uganda’s capital markets by enhancing investor confidence, improving market liquidity, and attracting foreign investment. The bank positions custody services not just as a financial product, but as a key enabler of broader economic resilience.
Absa Bank Uganda emphasised that it remains committed to fostering a robust and dynamic capital market. The reintroduction of custody services, the bank said, reflects its dedication to meeting the evolving needs of institutional investors and supporting Uganda’s financial growth trajectory.
About Absa Bank Uganda
Absa Bank Uganda Limited is part of Absa Group Limited, one of Africa’s largest diversified financial services groups listed on the Johannesburg Stock Exchange. With 40 branches and 79 ATMs across Uganda, the bank offers retail, business, corporate, and investment solutions, while pursuing its vision of being a force for good by improving lives and strengthening communities.
