The Prime Minister, Dr. Ruhakana Rudunda has called on all business entities and individuals in Uganda to consider obtaining capital through Uganda Securities Exchange (USE).
Dr. Rudunda who was addressing distinguished guests during the launch of Automated Trading System to be used by USE said “Uganda Securities Exchange was constituted by the government of Uganda as part of her commitment toward economic reforms aimed at empowering the private sector, the vehicle for economic growth, cause a knock on-effect on the economic livelihood of Ugandans by empowering them to create wealth through purchasing shares in different listed companies.”
Dr. Rudunda said Capital markets is a vital engine for economic growth because it presents the country, companies and individuals an opportunity to raise long term capital, attract foreign direct investments and enhance job creation to mention but a few.
Charles Mbire, Board Chair, USE, encouraged local companies to join Uganda Securities Exchange. “A majority of local companies don’t live more than five years after the death of the owner. The only way to have your company live after you is to list it under USE.” Mbire said.
Mbire sai the launch of the Automated Trading System by USE is a big milestone not only for stock exchange but also the economy as a whole especially at the time when the East African region is seeking economic integration. “The introduction of Automated Trading System in Uganda stock exchange will now attract more investors to the industry because USE now has both the capacity and technology.” Mbire remarked.
The automated trading system is a computer-based trading applications set up to automatically buy and sell securities on an exchange.
Paul Bwiso, Chief Executive Officer (CEO), USE said the launch of the Automated Trading System in to Uganda’s Security Exchange is a landmark achievement to both the capital markets and nation because the system will provide accurate data and information for broker and the investor to make informed decisions for trading. Bwiso said electronic trading systems are faster, cheaper, more efficient for users, and less prone to manipulation by broker/dealers.
He said that with Automated Trading System now place investors will have more time to trade, thus from 9:30 am to 3pm unlike before where trade began at 10am ending just at 12pm.
He said Automation enhances both liquidity and flexibility with regard to the time it takes to conclude a deal. The current settlement period is five working days. However with automation, and the elimination of inefficiencies brought about by the paperwork involved, the transaction period will be shortened to three days.