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.
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.
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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.
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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.
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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.
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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.
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