By Akiram Kamoga
Uganda’s State Minister for General Duties, Henry Musasizi, has introduced a mobile-friendly electronic system for purchasing Treasury Bills (T-bills) and Treasury Bonds (T-bonds), expanding access to government securities for everyday Ugandans.
The new system, hosted on the Easy Portal, allows investments in T-bills and T-bonds with a minimum of Shs100,000, accessible via MTN MoMo and Airtel Money.
T-bills are short-term securities with maturities of 91, 182, and 364 days, allowing investors to lend money to the government at a discount, while T-bonds are longer-term, maturing between 2 and 20 years and paying semi-annual interest.
The e-purchase system launch concluded the World Investor Week 2024 event in Kampala, organized by the Capital Markets Authority (CMA) and Uganda Securities Exchange (USE). Musasizi highlighted the importance of technology-driven financial inclusion through projects like “Okusavinga,” which lets retail investors purchase government securities on mobile devices.
He underscored the relevance of this initiative to the National Development Plan IV (NDP4), which prioritizes innovative financial products to boost financial inclusion for underserved populations, including small and medium enterprises (SMEs).
“The NDP4 emphasizes the role of capital markets in fostering economic resilience and encouraging long-term savings,” Musasizi noted, emphasizing that mobile-based investments are reaching rural and marginalized communities.
Josephine Osiya, CEO of CMA, emphasized the transformative potential of technology in democratizing investments and enhancing financial inclusion.
She pointed out that digital platforms reduce transaction costs and increase accessibility, ultimately aiming to raise national savings.
“With technology, we can double national savings, pushing it from the current 20% to 40% of GDP,” Osiya noted, adding that the CMA is implementing initiatives like a regulatory sandbox to test new products and digital compliance systems for enhanced transparency.
Paul Bwiso, Executive Director of USE, reported a positive trajectory in investor engagement since launching mobile-based accounts in 2018, which allow users to manage investments via mobile devices.
“We’re seeing significant growth and promising activity in investments, reflecting our financial sector’s advancement,” Bwiso said, noting the steady increase in transaction volumes as a sign of financial sector growth.
This mobile-driven e-purchase system is expected to open new avenues for Ugandans to invest in government securities, boosting national savings and advancing financial inclusion across the country.
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