Summary:
- During the event, Minister Musasizi lauded the company for securing licensing from the Capital Markets Authority (CMA), a milestone that authorizes it to offer diverse financial products such as private wealth management, unit trust funds, and pension management.
KAMPALA: The Minister of State for General Duties in the Ministry of Finance, Henry Musasizi Ariganyira on Friday officiated at the launch of Cornerstone Asset Managers’ Investment Management Services in Naguru, Kampala.
During the event, Minister Musasizi lauded the company for securing licensing from the Capital Markets Authority (CMA), a milestone that authorizes it to offer diverse financial products such as private wealth management, unit trust funds, and pension management.
In his remarks, Minister Musasizi highlighted that this development aligns with the government’s policy on capital mobilization and financial inclusion.
He emphasized the significant potential presented by Uganda’s demographics and economic growth trends.
“Our young population, thriving entrepreneurial spirit, and increasing middle class provide enormous prospects for growth,” Musasizi said. “To fully achieve this potential, we must guarantee that individuals, families, and businesses have access to a wide range of financial solutions that address their needs for security, growth, and long-term prosperity.”
Minister Musasizi pointed out the low performance of Uganda’s capital markets compared to regional and international peers stating that “As of August 31, 2023, the total capital market capitalization stood at Shs 7.2 trillion, representing only 4.4% of GDP. This is significantly lower than Kenya’s 10.5%, Mauritius’s 45.3%, and South Africa’s 327.6% (equivalent to USD 1.23 trillion)”.
“This implies that our capital markets are not doing well compared to our peers, and more work needs to be done,” he noted.
Minister Musasizi outlined ongoing government efforts to strengthen Uganda’s capital markets as an alternative source of long-term development finance for both the public and private sectors. These interventions include:
Establishing a framework for operationalizing the fixed income market, Expanding the Investor Compensation Fund and Strengthening the dispute settlement mechanism.
Promoting private equity finance.
“We believe the above proposed interventions shall contribute to the development of capital markets in Uganda,” Musasizi stated.
He reaffirmed the government’s commitment to fostering a robust financial ecosystem that supports inclusive growth and economic transformation.
The launch of Cornerstone Asset Managers comes at a time when Uganda is striving to position its capital markets as a vital pillar for sustainable economic development.
