Uganda’s custodial services sector is showing strong potential for growth, driven by rising demand from pension funds, collective investment schemes, and offshore investors seeking secure, efficient, and transparent investment platforms.
Speaking on the sector’s prospects, Director Research & Market Development at the Capital Markets Authority-Dickson Ssebunya, highlighted that while approximately 140,000 Ugandans currently participate in commingled funds or collective investment schemes, this represents only a fraction of the country’s 45 million population and labor force of about 25 million. “We have barely scratched the surface,” Sebunya said.
Currently, seven licensed financial institutions offer custodial services in Uganda, signaling growing confidence and diversification in the nation’s capital markets.
Authorities are intensifying efforts to demystify investment processes for the public, operating on the principle that a well-informed investor is a protected investor.
The Capital Markets Authority (CMA) notes that the future of Uganda’s custodial services sector looks promising, particularly due to the expansion of pension assets and collective investment schemes, which are expected to create deeper and more resilient financial markets.
For Absa Bank Uganda, the re-entry into custodial services indicates a renewed commitment to providing world-class asset protection and reporting solutions tailored to local market needs.
The bank is investing in technology to ensure seamless execution and operational efficiency, and emphasizes a partnership approach that positions it as an extension of its clients’ investment schemes.
“We provide dedicated relationship support and empower decision-making,” said Wandera David,the ABSA Bank, Managing Director .
“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,”he remarked.
Recent reports indicate that Uganda ranks fourth out of 29 countries in investor participation, reflecting growing engagement in capital markets.
Custodians play a crucial role as the “silent guardians” of these markets, ensuring that every shilling invested is secure, traceable, and contributes to economic growth.
With increasing investor confidence and a supportive regulatory environment, Uganda’s custodial services sector is set to play a pivotal role in strengthening the country’s financial ecosystem.