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Different ways you can invest your money in Uganda

Posted by Musbon RealEstate on April 22, 2023

There different ways you can invest your money in Uganda and they include,’

Ways of investment in Uganda.

Available investment products to choose from including the following

  1. Business: These include business set up for production, processing and exportation. Some people have set up both big and small outlets for the sale of goods and services. These can include retail and wholesale shops and other companies.
  2. Farming; Uganda is an Agricultural economy and most investments are carried out in this sector. Opportunities are available for investment form production, processing and exportation.
  3. Real Estate; Investment in property or real estate or land is good business especially when the market is right. There are many real estate companies in Uganda involved in the purchase and sale of land and other assets e.g. houses.
  4. Fixed Deposit or Certificate of Deposit: When you invest in a fixed deposit, you lend your money to the financial institution and benefit from the interest that accrues on the money. You can invest in a fixed deposit by paying money into an account set up for you by the relevant financial institution.
  5. Stocks/Shares: A share is an instrument which represents partial ownership of a company. when you invest in shares, you become a shareholder in the company and are entitled to dividends from the profits of the company.
  6. Bonds; A bond is an instrument used by the issuer to borrow money from the holder with the obligation to repay the principal and interest at future dates. When you invest in bonds, you lend your money to the issuer of the bond who may be a company or government. Bonds can be bought and sold from a regulated stock exchange such as the Uganda Securities Exchange (USE).
  7. Government securities (treasury bills and bonds) are agreements where an individual or business lends money to the government for a specified period (between 3 months and 10 years) after which they will get their initial money back plus interest. Government securities come with almost no risk of default and the interest is fixed.
  8. Collective Investment Schemes (CISs) are private financial arrangements regulated by the government through the Capital Markets Authority (CMA), where many small investors pool resources. Professional licensed and certified fund managers invest these resources in various ways such as shares, bonds, property, fixed deposit accounts and treasury bills with the main goal of generating high returns while minimizing risk through investing in different financial opportunities.

Why You Should Invest?

When you invest, you give a few of your earnings to someone to do business with and who would then pay you back regularly or at an agreed time with additional money earned from what he used the money for.

Your money which would have sat idle now works for you and brings you more money and that is a good reason to invest.

There are many reasons why people invest. Here are some key reasons why you should consider investing your money

  • You generate additional resources to protect your future well being
  • You achieve your financial goals such as buying a house or starting a business
  • You accumulate resources to pay for the education of your children
  • You accumulate resources to care for your children, ageing parents and other relatives.
  • You secure your retirement income
  • You contribute to the growth of our national economy as your investment is deployed in the productive sector of the economy
  • You preserve the value of your money against inflation
  • Creation of employment opportunities
  • Increase the ability to earn more income

How And Where You Can Invest?

BANK OF AFRICA In Uganda has specialized unit in managing the investment. Visit the custodial page to see a variety of investment avenues to choose and tailor-made advice.

NB: Always seek professional advice before you invest.

How to choose the right Investment?

Various factors can inform your choice of investment products. Weigh these factors carefully and make the decision. The factors include:

  • Your objective for investing
  • Your current Income
  • Your age
  • Your risk tolerance level


Risks in Investment

Every investment comes with a risk. There is a risk of losing money when your investments lose value, are stolen, mismanaged, destroyed or damaged. If you are investing through a bank or you use an investment advisor, find out from them how to best minimize risk of loss.  Some investments such as real estate, government securities, bonds and treasury bills usually have very little risks. Invest according to how much risk you are willing to take. Riskier investments may earn you higher profits, if they are successful – but there is a greater chance that you can lose some or all of your money.

Different ways you can invest your money in Uganda

You will be a successful investor if you always review the information you are given, ask questions and make sure you understand and are comfortable with the way your investment is being managed.

  • Keep in touch with the financial institution or investment firm so that you can monitor your investments
  • Invest regularly
  • Keep your investment receipt or certificate in a safe place

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