Centenary Bank has launched custodial services in Uganda, a move strongly backed by Michael Atingi-Ego as a major step toward strengthening investor confidence, deepening capital markets, and mobilising long-term financing for economic growth.
Speaking at the launch, the Governor of the Bank of Uganda said the introduction of custodial services comes at a critical time when Uganda is accelerating efforts to grow its economy to $500 billion by 2040. He described custody as a core pillar of financial market infrastructure, essential for safeguarding assets, enhancing transparency, and supporting institutional investors including pension funds, insurers, and asset managers.
“Custodial services are the bedrock of trust in any financial system. They ensure assets are secure, transactions are transparent, and capital is efficiently deployed,” Atingi-Ego said.
Uganda’s financial sector growth is increasingly driven by institutional capital, with pension funds, collective investment schemes, and insurance assets expanding rapidly.
The Governor noted that professional custodial services will play a central role in capital markets development by reducing risk, improving governance, and reinforcing accountability across the financial system.
He emphasised that Uganda will require more than UGX 400 trillion in patient capital to finance infrastructure, business expansion, and job creation under its long-term development strategy. “Investor confidence depends on strong systems. Custody provides the assurance needed for both domestic and international investors to commit long-term capital,” he added.
The Governor also highlighted Uganda’s improving macroeconomic environment, with economic growth projected at 6.5% to 7% in the current financial year and expected to rise to about 8% in the medium term, supported by oil production.
Inflation remains contained at 3.4%, while foreign exchange reserves stand at nearly $6 billion, equivalent to four months of import cover—factors that strengthen Uganda’s attractiveness to institutional investors.
Uganda’s progress in financial sector reforms has also been recognised globally, with the country ranking third in the Absa Financial Markets Index, reflecting gains in market liquidity, regulatory frameworks, and adoption of international standards.
However, Atingi-Ego noted that limited pension sector depth continues to constrain capital markets growth, underscoring the importance of custody solutions in unlocking long-term investment.
In his remarks, Fabian Kasi said the new custodial services offering is a strategic response to evolving customer needs and positions the bank at the centre of Uganda’s financial sector transformation.
“This is not just a product launch—it is a statement about our role in advancing trust, governance, and institutional investment in Uganda’s capital markets,” Kasi said.
He explained that the bank’s custodial platform is designed to support institutional investors such as pension funds, fund managers, corporates, and development organisations by providing secure asset safekeeping, real-time reporting, and compliance-driven processes.
Centenary Bank enters the custody space with total assets exceeding UGX 8.6 trillion and a loan portfolio of more than UGX 4 trillion, supporting over 300,000 enterprises across Uganda. The bank maintains a non-performing loan ratio of 2.8%, reflecting strong risk management, while its nationwide footprint of over 80 branches, more than 200 ATMs, and thousands of agents ensures broad access to financial services.
Kasi said the automated custody platform will reduce paperwork, enhance operational efficiency, and improve data accuracy, giving institutional investors greater visibility and control over their assets. He added that custody services are central to building confidence in Uganda’s financial markets, where transparency, governance, and secure asset management are critical for attracting long-term capital.
“Capital markets growth depends on strong infrastructure. Custodial services ensure assets are protected, reporting is accurate, and compliance is embedded—creating the environment where investment can thrive,” he said.
He also highlighted the importance of collaboration across the financial ecosystem, recognising the role of regulators and stakeholders in strengthening Uganda’s investment landscape, including the Capital Markets Authority, Uganda Retirement Benefits Regulatory Authority, and Insurance Regulatory Authority.
The launch signals Centenary Bank’s expansion beyond traditional banking into a broader financial services model, as it seeks to support Uganda’s growing demand for sophisticated investment solutions.
Both Atingi-Ego and Kasi framed custodial services as a strategic enabler of Uganda’s economic future—one that will boost investor confidence, support pension fund growth, and accelerate capital markets development in one of East Africa’s fastest-growing economies.