BY Musinguzi Bob Mugisha

The Uganda Securities Exchange (USE) launched a groundbreaking electronic purchasing platform for treasury bills and bonds on October 25, 2024, as part of the World Investor Week under the theme “Tech-Enabled Financial Inclusion: Bringing Sustainable Finance and Investment Opportunities to Everyone.”

Accessible at www.scd.use.or.ug, this platform allows investors to directly purchase government securities online, marking a significant step in public financing and broadening investor accessibility. This initiative aligns with Uganda’s Vision 2040 strategy, aiming to elevate the national savings rate from 20% to 40% with an aim of supporting Uganda’s ten-fold growth agenda.

Motivations for the E-Purchase Platform

1. Expanding the Savings Base: A major motivation behind the platform is to enhance Uganda’s national savings rate to drive economic stability and growth. By making government securities more accessible through a digital, user-friendly system, the USE targets a broader population segment, transforming individual savings into growth-oriented capital.
2. Increasing Transparency in Public Financing: Digitalizing the purchasing process for government securities boosts transparency in government financing, which is essential for fostering public trust. The platform ensures that all transactions are recorded, verifiable, and accessible to the public, highlighting responsible financial management and reinforcing confidence in the country’s debt instruments.
3. Promoting Financial Inclusion: Previously, buying treasury bills and bonds was mostly limited to institutions and wealthy individuals due to complex processes and physical requirements. The new e-purchase platform simplifies access for all Ugandans, including those in remote and underserved areas, democratizing investment in government securities and promoting inclusivity in financial participation.

Benefits of E-Purchasing Government Securities

The e-purchase platform brings numerous advantages for investors, the government, and Uganda’s economy:

• Convenience and Accessibility: Investors can buy treasury bills and bonds from any location using a mobile phone or computer, reducing barriers and making investment faster and more accessible.
• Broadening Participation in Capital Markets: With government securities now available electronically, the USE expects to attract a wider range of investors, including younger, tech-savvy individuals. This broadened participation strengthens Uganda’s capital markets, diversifies the investor base, and enhances market liquidity.
• Lowering Transaction Costs: Streamlined digital transactions lower operational costs for both the government and the USE, enabling cost savings that can be passed on to investors through reduced fees, making government securities even more attractive.
• Supporting Economic Development Goals: By increasing the national savings rate through easier access to government securities, Uganda can finance critical infrastructure projects domestically, reducing reliance on foreign debt. This enhanced savings pool supports long-term financial stability and contributes to Uganda’s Vision 2040, aligning with broader economic goals.

A Transformative Step for Uganda’s Financial Sector

The introduction of e-purchasing for treasury bills and bonds is a transformative development for Uganda’s financial sector. By addressing accessibility, transparency, and inclusivity, this platform strengthens Uganda’s financial ecosystem and fosters a culture of savings. The initiative reflects the commitment of the Uganda Securities Exchange and the government to innovate and make capital markets more inclusive, transparent, and responsive to the needs of all Ugandans. As more citizens take part, Uganda’s path to achieving Vision 2040 and ten-fold economic growth becomes more achievable, setting a foundation for long-term stability and prosperity.

SCD Manager at the USE