Uganda is charting an ambitious course to dramatically transform its economy, targeting a tenfold increase from its current US$63 billion to a staggering US$500 billion within the next 15 years.
This monumental leap, however, demands a fundamental shift in how the nation mobilises capital, moving beyond conventional financing to embrace the transformative power of alternative investments.
This bold message was delivered by the Capital Markets Authority (CMA) at the 3rd Alternative Investment Conference held in Kampala on Wednesday, under the theme ‘Advancing Private Sector Leadership in Climate Finance Mobilisation’, where Ssembuya Magulu, the Director of Research and Market Development, represented the CMA CEO, Mrs. Josephine Okuyu Ossiya.
While at the Conference that was officiated by the Bank of Uganda Governor, Mr. Michael Atingi-Ego, Magulu articulated a clear vision, stating that traditional finance alone cannot pave the path to such unprecedented growth.
“The road to a US$500Bn economy will not be paved by traditional finance alone. Alternative investments are the missing link; the catalyst for transformative growth,” Magulu asserted.
He emphasised the critical role of private capital, venture capital, private equity, and impact investing in unlocking Uganda’s full economic potential.
Magulu noted that Uganda’s audacious economic transformation hinges on strategically developing four key sectors:
Agro-industrialization
By focusing on value addition to agricultural produce for robust export markets.
Tourism
Leveraging Uganda’s rich natural beauty and cultural heritage through eco-tourism, cultural experiences, and expanded hospitality.
Mining, Oil and Gas
Ensuring sustainable extraction and value addition from the nation’s promising oil and gas industry and diverse mineral resources.
Technology
Driving innovation in fintech, digital solutions, and smart infrastructure to build a competitive knowledge economy.
To attract the billions in investment required for this vision, Magulu argued that Uganda must become unequivocally “investment-ready.”
He pointed out that the CMA is spearheading a multi-pronged strategy to achieve this through doing the following:
Scaling Business Development Services
Under the support of the European Union’s Deal Flow Facility, CMA is enhancing its services to make Ugandan enterprises more bankable and attractive to investors.
Advancing Regulatory Reforms
The Authority is actively modernising its regulatory framework to enable more flexible capital raising mechanisms and facilitate robust secondary markets for private assets, fostering liquidity and investor confidence.
Finalising Sustainable Finance Frameworks
Magulu revealed that a critical framework for Green, Social, and Sustainability-linked finance is nearing completion. This, he said, will ensure alignment with global Environmental, Social, and Governance (ESG) standards, positioning Uganda to tap into the expanding pool of global capital seeking responsible and impactful investments.
During the conference, the CMA reaffirmed its commitment to collaborating with all stakeholders, including investors, policymakers, and the private sector, to cultivate a dynamic ecosystem where alternative capital can flow freely and effectively.
This collaborative approach is seen as essential for propelling Uganda’s national development agenda and achieving its ambitious economic aspirations.
Uganda’s journey to a US$500 billion economy is a testament to its bold ambition.
With alternative investments identified as the crucial catalyst, and the CMA actively laying the groundwork for a more robust and innovative financial landscape, Uganda is positioning itself to attract the unprecedented capital necessary to realise its transformative growth story.