Uganda’s Collective Investment Schemes (CIS) have achieved a significant milestone, with assets under management (AUM) surpassing US$1 billion for the first time. As of the end of December 2024, the total AUM for licensed CIS reached UGX 3.85 trillion (US$1.05 billion), according to the latest quarterly bulletin released by the Capital Markets Authority (CMA).
This surge in AUM represents substantial growth, with a 9.6% increase from UGX 3.51 trillion at the end of September 2024, and a remarkable 63.2% jump from UGX 2,357.5 billion at the end of December 2023. The number of funded CIS accounts also saw significant growth, rising by 11.6% in the last quarter to reach 113,445, and expanding by an impressive 60.29% year-on-year.
Several factors have contributed to this impressive growth. The CMA highlights a robust regulatory environment that has fostered investor confidence, coupled with public awareness campaigns by both the CMA and CIS managers. The availability of mid-term savings accessed by National Social Security Fund (NSSF) members has also provided a significant boost to CIS investments. Furthermore, the number of licensed CIS managers has increased to seven, including prominent firms such as Britam Asset Managers Uganda Limited, ICEA Lion Asset Management Limited, and Sanlam Investments East Africa Limited, offering investors a wider range of options.
Regionally, Uganda’s growth in CIS AUM positions it competitively. While Kenya leads the region with US$2.44 billion in AUM, Uganda’s figures are comparable to Tanzania’s US$1.05 billion.
Table 1: Jurisdictional Comparison of Number of CIS Investor Accounts and CIS AUM as of 31st December, 2024
| Indicator | Uganda | Kenya | Tanzania |
|---|---|---|---|
| CIS Assets under Management (US $ million) | 1,050.1 | 2,444.9 | 1,051.3 |
| CIS Assets under Management to GDP (%) | 2.3 | 2.2 | 1.5 |
| Number of CIS Accounts | 113,445 | 1,299,300 | 361,254 |
Josephine Okui Ossiya, CEO of the Capital Markets Authority, commented on the achievement, stating, “We continue to see remarkable growth in CIS AUM as more Ugandans recognize the advantages of investing through pooled savings vehicles. The strong regulatory framework has boosted investor confidence by ensuring protection when investing in regulated financial products like CIS funds. We urge Ugandans to invest only in regulated financial products or engage with licensed entities to safeguard and grow their hard-earned savings.”
This milestone underscores the growing sophistication of Uganda’s financial sector and the increasing public trust in regulated investment vehicles. The CMA’s continued efforts to promote financial literacy and strengthen regulatory oversight are expected to further drive growth in the CIS sector in the years to come.
