The Uganda Securities Exchange (USE) serves as the country’s key capital markets hub—enabling individuals and institutions to invest in publicly listed equities and bonds. While smaller than regional peers, the USE is gaining traction as a platform for wealth creation, investment diversification, and promoting financial inclusion.

This investor guide explores how the USE works, step-by-step instructions to begin trading, investing strategies, and recent developments shaping Uganda’s capital markets.

1. What Is the Uganda Securities Exchange?

Founded in 1997, the USE is Uganda’s principal securities exchange, regulated by the Capital Markets Authority (CMA). It offers trading in:

• Equities, such as shares in both domestic and regional companies
• Government bonds, via authorized trading systems
• Other securities including depository instruments and future products

In addition to the USE, Uganda boasts the ALTX East Africa Exchange (ALTX)—a fully electronic, secondary exchange offering low minimum trades (~US$3) in listed bonds, ETFs, and more Wikipedia+1.

2. Why Invest Through the USE?

• Regulated and secure: Investments are overseen by the CMA, ensuring transparency and protection. Wikipedia
• Accessible ownership: Buying shares allows investors to participate in company profits and governance. use.or.ug
• Portfolio diversification: Mixes equity exposure with fixed-income instruments to balance risk.
• Supporting the economy: Your investments contribute to capital market development and business expansion.

3. How to Start Investing on the USE

Step 1: Open a CDS Account

• Required to hold securities; obtainable through licensed brokers and usually free.
• Documentation: Valid national ID and 3 passport-sized photos. use.or.ug

Step 2: Choose a Licensed Broker or Unit Trust Manager

• Brokers act as intermediaries helping you trade.
• Firms include Crested Stocks, Dyer & Blair, Old Mutual, Stanbic, KCB Uganda, etc. Wikipedia

Step 3: Fund Your Account

• Use bank transfers or mobile platforms to fund broker trust accounts. The funds are held securely before investing. use.or.ug

Step 4: Place Orders

• Submit buy/sell instructions to your broker, including price and quantity.
• Your broker routes the order to the USE trading system, and execution typically happens on the same day.

Step 5: Settlement & Holdings

• Once trading concludes, ownership transfer occurs, and holdings are updated in your CDS account.

4. Trading Government Bonds via the USE and Digital Platforms

Investing in government securities is also increasingly accessible:

Authorized Dealers like ALTX

• Offer government bonds directly via mobile or web platforms.
• Start with as little as UGX 10,000 (~100 units). altxafrica.comWikipedia

Primary Dealers and Banks (e.g., DTB, HFB, DFCU)

• Help investors purchase bonds via competitive or non-competitive bids.
• Bonds range from short-term T-Bills (91 to 364 days) to long-term T-Bonds (2–15 years), typically requiring a minimum UGX 100,000 investment. Housing Finance BankUpdates UGdtbu.dtbafrica.comtoweracademic.com

Digital Platforms such as Level Africa

• Simplify bond purchasing: open account, select bond, fund via Mobile Money or bank transfer, and buy instantly. level.africa+1

Interest is paid biannually, and bonds can be held to maturity or sold on the secondary market.

5. Investment Vehicles Beyond Direct Trading

• Unit Trusts: Professionally managed pooled funds investing in bonds, deposits, or equity.
  • Start with UGX 100,000; typically tax-exempt and flexible. level.africaReddit+1
• Pension Funds (e.g., NSSF): Invest indirectly via institutional schemes focused on long-term growth. Wikipedia

These options provide diversified entry points for passive investors.

6. Tips for Successful Investing

• Start small and diversify to manage risk.
• Use both direct equities and bonds or explore unit trusts for blended exposure.
• Stay updated on market developments, company reports, and USE announcements.
• Monitor charges: broker commissions, custody fees, and taxes on gains.
• Remember: long-term holding can yield better returns than quick trades.

Summary Table

Option	Entry Point	Ideal For
USE Shares & Bonds	Via brokers or platforms	Active investors seeking diversification
Unit Trusts	UGX 100,000	First-time investors seeking passive growth
Government Bonds	UGX 100,000	Conservative investors seeking secure income
Pension or Institutional Funds	Through employment or networks	Long-term savers and retirees

Conclusion

The Uganda Securities Exchange and related platforms offer a structured and secure way to invest in Uganda’s growing capital markets. Whether you’re trading shares, buying bonds, or joining a unit trust, there are options tailored to diverse needs and risk preferences.