Rapid Growth Projected in Asset Management Sector

1119 Views Kampala, Uganda

In short
Denis Mugalya, the Chairman of Uganda Investment Management Association, says their projection is that from nine trillion shillings the retirement benefits and asset management sector asset base is expected to grow to nearly 22 trillion shillings.

Players in retirement benefits and asset management say the multi-trillion-shilling sector is projected to grow by leaps and bounds in the next five years.
 
Speaking at the just concluded 3rd Kampala Private Equity and Venture Capital Conference, the Chairman of Uganda Investment Management Association, Denis Mugalya, said their projection is that from nine trillion shillings the sector's asset base is expected to grow to nearly 22 trillion shillings.
 
//Cue in: "We as a…
Cue out: … terms of growth."//
 
In addition to NSSF, there are 63 other voluntary pension schemes regulated by Uganda Retirement Benefits Regulatory Authority (URBRA).
 
Mugalya said the current nine trillion shillings, with five-year projection of 22 trillion shillings, is the kind of money that needs prudent investment in order to grow it, both for the contributors and the economy.
 
//Cue in: "So that is…
Cue out: … the conversation."//
 
According to Mugalya, private equity and venture capital are finding it hard to deepen in Uganda because most firms and their business ideas tend to be half-baked and, therefore, not attractive.
 
//Cue in: "One of the…
Cue out: … particular market."//
 
Mugalya, who also works with hedge fund Pinebridge revealed that although they have two billion dollars to invest in East Africa, Uganda has been able to absorb just 250 million dollars, with the rest being taken up by especially Kenya.
 
Garvin Onaba, a member of the trustees of Bank of Uganda retirement savings scheme, said risks of investing contributors' savings should always be factored in.
 
//Cue in: "There is the…
Cue out: … considered to."//
 
Anthony Nsubuga from URBRA said the law allows just 15 percent of retirement savings to be invested as private equity only within East Africa.

Dr Rachel Mindra from Makerere University Business School challenged players in the sector to popularise the opportunities to relevant targets like business people, informal employees and young people.

//Cue in: "We are thinking...
Cue out: ... talking too."//

***

 

About the author

David Rupiny
In his own words, David Rupiny says, "I am literally a self-trained journalist with over 12 years of experience. Add the formative, student days then I can trace my journalism roots to 1988 when as a fresher in Ordinary Level I used to report for The Giraffe News at St Aloysius College Nyapea in northern Uganda.


In addition to URN for which I have worked for five years now, I have had stints at Radio Paidha, Radio Pacis, Nile FM and KFM. I have also contributed stories for The Crusader, The New Vision and The Monitor. I have also been a contributor for international news organisations like the BBC and Institute for War and Peace Reporting. I am also a local stringer for Radio Netherlands Worldwide.


I am also a media entrepreneur. I founded The West Niler newspaper and now runs Rainbow Media Corporation (Rainbow Radio 88.2 FM in Nebbi). My areas of interest are conflict and peacebuilding, business, climate change, health and children and young people, among others."