Uganda’s capital markets regulator is banking on reforms and easier bureaucracy to attract investors, eyeing a bigger contribution to the country’s GDP.

The Capital Markets Authority (CMA) said it is pursuing full automation of its operations, increased staffing and shorter turnaround times for processing license applications, in spite of perennial inadequate funding as well as little incentives for listed firms.

All these goals are under a new strategic plan, a document meant to guide operations until 2030. The strategic plan is aligned with the country’s National Development Plan (NDP) IV, which was approved by Parliament in the first half of this year.

The new capital markets strategy aims to increase stock market capitalisation as a share of GDP from 5 percent to 10 percent by the end of the 2029/2030 financial year.

This goal hinges on future growth in the number of listed companies, higher trading volumes and steady increases in share prices, among other factors. Uganda’s GDP stood at $55 billion as of May 2025.

Total assets held by unit trust funds are projected to grow from USh3.8 trillion ($1.07 billion) at the end of June 2025 to USh13.4 trillion ($3.8 billion) by June 2030. This growth target is based on increased local savings, a rising number of unit trust fund managers, and new products.

Average turnaround times for market license approvals are expected to decrease from roughly three months to five weeks—signalling improved efficiency, reduced business costs for industry players, and enhanced market competitiveness.

Additionally, CMA plans to fully automate its regulatory systems to maximise operational efficiency. The number of employees is expected to grow from 40 currently to 72 by June 2030, addressing persistent workforce gaps in field operations, according to sources.

While Ush171 billion ($48.3 million) is required to implement various initiatives outlined in the plan, the regulator recorded a budget deficit of more than 50 percent between the 2021/2022 and 2024/2025 financial years.

CMA had submitted a total budget of Ush32.6 billion ($9.2 million) to the Ministry of Finance during that period but received only Ush23.11 billion ($6.5 million), according to its records.

The lack of tax relief measures for listed companies has cast doubt on growth projections tied to stock market capitalisation. Delays in offering attractive tax waivers to listed firms are frequently cited as a reason for the low number of locally listed companies on the Uganda Securities Exchange (USE), financial analysts say. Currently, there are 10 domestic listed companies on the USE, according to stock market records.“The new strategic plan does not include tax relief for listed companies because that falls outside our policy mandate. However, we are exploring policy incentives such as reduced corporate tax rates. The Ministry of Finance is reviewing this matter and will announce its position in due course,” said Josephine Ossiya, Chief Executive Officer of CMA Uganda.

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