Capital Markets Authority (CMA) has launched a four–year strategic plan under the theme “Fostering Inclusive growth, protecting investors”. This was held at Mestil Hotel, Kampala with key stakeholders in the Industry in attendance as enablers to make it possible for all parties to achieve their goals.
According to Keith Kalyegira, the CEO, Capital Markets Authority, the strategic development plan will focus on strengthening the authority’s oversight, institutional excellence, and promotion of economic development through the creation of a competitive and inclusive environment for businesses and government to access market–based financing.
“We are hoping to roll out all this as per the master plan and intend to work smoothly with the intermediaries such as the central bank, commercial banks among others and will extend to reach out to new frontiers,” said Kalyegira.
He added that in the previous plan 2016 – 2021 whose objective was promoting, facilitating the capital markets, enhancing and regulating the ecosystem for the markets and other initiatives, they managed to hit over 80 percent of their target.
He noted that they were able to raise UGX 471 billion from three companies through the secondary offers to existing issues by DFCU with UGX191 billion, UMEME UGX 132 billion and CIPLA with an Initial Public Offer (IPO) at UGX167 billion through the Uganda Security Exchange in 2018 which was an indication that there is a great potential in the capital markets.
Kalyegira stressed that they launched the issues of the education program which they were able to raise UGX41 billion and reached out to over 30 companies with which three of them dealing in pharmaceutical, professional education, and microfinance services, noting that through the public education program, they reached out to over 165,000 potential investors with 66, 599 through face to face engagements and 100, 000 using electronic and social media among others.
He also emphasized that the cabinet approved a national broadband policy which will see the telecommunication companies be listed on the stock exchange in Uganda soon.
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Financial Sector Deepening Uganda, Executive Director, Rashmi Pillai said that the plan should focus more on the private sector since it employs the biggest population with steady growth and that the labour force is a key driver in economic transformation.
“Access to capital is one of the key viable constraints to Small and Medium Enterprises (SMES) that employ the majority of the people. Capital Markets have the alternative financing potential to reduce the credit gap in this country. Strengthening the legal framework and undertaking public and communication campaigns with the focus on growing, empowerment of the market participants with Intermediaries, supporting the development and operationalization of stakeholders and building their capacity is crucial,” said Pillai.
She noted that most companies usually go for short-term financing which is expensive and doesn’t match with their long-term vision of their growth.
Jacqueline Kobusingye Opondo, the chairperson board of directors of CMA pointed out that the plan has a greater role in supporting and realization of the country’s development agenda as set out in vision 2040 and more specifically in the National Development Plan III where they are implementers.
Kobusingye also pledged full commitment to achieving the strategic development plans in line with the results of the framework put in place.
CMA also mobilized technical assistance from Financial Sector Deepening Africa which made it possible to review the Collective Scheme Act, Communication Strategy, Corporates bond guidelines, and establishment of contact with the Chartered Institute of Securities and Investment.
