Uganda’s financial sector leaders have underscored the critical role of custodial services in accelerating capital market maturity, investor protection, and long-term savings growth, following the launch of custodial services by Centenary Bank at Mestil Hotel.
Speaking during a high-level panel discussion, Josephine Okui Ossiya, Chief Executive Officer of the Capital Markets Authority Uganda, said custody is central to transitioning Uganda’s capital markets from growth to full maturity.
“Uganda’s capital markets are gaining momentum, but maturity depends on trust, participation, and institutional capital flows—and custody sits at the center of all three,” Ossiya said.
She revealed that collective investment schemes have reached approximately UGX 6 trillion in assets under management, representing about 2.5% of GDP, while domestic market capitalization at the Uganda Securities Exchange has surged to UGX 21.8 trillion, marking a 59% year-on-year growth.
However, Ossiya noted that over 80% of investments remain concentrated in government securities, highlighting the need to diversify investable assets.
“Custodial services provide safekeeping, settlement efficiency, and transparency—key requirements for sophisticated investors. A market can grow without custody, but it cannot achieve maturity without it,” she emphasized.
From a governance perspective, Linda Daisy Nabakooza- Chief Manager Supervision and Market Conduct at the Uganda Retirement Benefits Regulatory Authority stressed that strong oversight frameworks are as critical as returns.
“Governance is the bedrock of the entire ecosystem. Any lapse affects the final beneficiary—the ordinary Ugandan saving for retirement,” Nabakooza said, urging Centenary Bank to leverage its 3.4 million customer base to expand retirement coverage.
She challenged financial institutions to integrate retirement planning into their offerings, particularly for underserved populations such as rural farmers, noting this would deepen both pension penetration and capital markets development.
On the regulatory front, Musa Ssebufu from the Insurance Regulatory Authority of Uganda highlighted new directives requiring insurance firms offering guaranteed funds to adopt custodial services.
“The objective is anchored on four pillars—trust, transparency, accountability, and customer protection,” Ssebufu said, adding that custody ensures proper segregation of funds and safeguards policyholder interests.
Industry players also pointed to operational benefits.
Mubaale Mugalya-General Manager,Sanlam Allianz said the evolution from manual to automated custody systems has significantly enhanced risk management, scalability, and innovation.
“Custody is no longer optional—it is a regulatory requirement and a strategic enabler for growth and product innovation,” Mugalya noted.
Meanwhile, Benoni Okwenje- General Manager of the Financial Markets Department at Centenary Bank, emphasized that banks are uniquely positioned to deliver custodial services due to their infrastructure, regulatory oversight, and nationwide reach.
“With strong governance frameworks, asset segregation, and robust reporting, custody enhances investor confidence and unlocks institutional savings growth,” Okwenje said.
He added that Centenary Bank’s extensive branch network could extend custodial access beyond urban centers, enabling broader participation in capital markets.
The launch positions Centenary Bank as Uganda’s seventh licensed custodian, strengthening the country’s financial market infrastructure at a time when regulators and industry leaders are pushing for a 10-fold expansion in investment participation.