What challenges are faced by the Uganda Securities Exchange? As of 29th December 2017, the HoSE had 344 companies listed on the exchange excluding bonds and ETFs. The Capital Markets Authority (CMA) approved the setting up of the Uganda Securities Exchange (USE) in 1997 as the only approved securities exchange in Uganda. In 2017 only, 31 new equities were listed on the HoSE and another 15 bonds, 1 ETF and 1 Fund certificate making it 48 new companies in just one year (2017). Some have described our “Privatization” process as “Personalization”. Unfortunately, in Uganda, the capital markets industry is still at its nascent level characterised by the low level of Initial Public Offers leading to fewer companies listed on the stock exchange. This was followed by a rapid growth to 247 securities with a Market Cap of $28.28bn by the year 2010. The USE was formed in 1997 as a company limited by guarantee by the Capital Markets Authority (CMA) under the Capital Markets (Licencing) regulations of 1996. This obviously considers the growth in population with Uganda at about 40.9 million people up from 21.7m people in 1997 (representing 88.5% growth) while the Population of Vietnam was 94.6m in 2016 up from 77.6m in 2000 (representing a 21.9% growth). Therefore, the stock market missed a big chance to tap on to the process that would fast transform the economy and facilitate its growth. The study variables included real GDP as a proxy of economic growth; while the proxies for the stock exchange development were shares traded, market turnover, and market capitalization. Just to draw comparisons, let us look at the Vietnamese Stock exchange and specifically focus on the HoSE (The Ho Chi Minh Stock Exchange). Evidence from Nigeria. 3.4 Legal and technical Challenges facing capital market development generally..... 50 3.6 Prospects of capital markets ... USE Uganda Securities Exchange WAEMU West African Economic and Monetary Union . International. The bourse; USE celebrating 10 years of Uganda Securities Exchange [Electronic Version]. Does opening a stock exchange increase economic growth? Through redesigning the listing rules and creating incentives for private companies to go public. 1418. What is the time signature of the song Atin Cu Pung Singsing? Hossain, Sharif & Kamal, Mostafa (2010). While a strong and statistically significant correlation was established between the economic growth and the Exchange, the Granger causality relationship findings were inconclusive further affirming that stock markets are not a. Specifically, from the year 1997, Uganda went full scale on privatization but rather than take these companies through the Public listings, the government opted to go “Full private”. Box 166 Gulu, Uganda, 2Department of Management, SMC University, Zug, Switzerland, Cite this paper:Mshilla Maghanga and William Quisenberry. The subsequent years saw six (06) more local equities listed in 2002 (Bank of Baroda Uganda), 2004 (DFCU Ltd and New Vision Limited), 2007 (Stanbic Bank Ltd), 2009 (National Insurance Corporation- NIC), and 2012 (Umeme Ltd). Challenges Facing Nairobi Securities Exchange 1. It should be clearly noted that there has been no single IPO on the USE since 2013! What challenges are you facing? Abu, Nurudeen (2007). Economic News. Svoboda, Martin (2006). The public did not only miss the opportunity to participate in “owning” these companies, but the process denied the economy an opportunity to grow by providing a robust stock market that would mobilize huge economic resources for the various companies that needed it to spur economic growth. The questions that have been lingering in my mind for the time I have been a student of Finance have been “Why isn’t our Stock market growing as fast as it should?”, “Are we as an economy suffering from lack of proper economic planning?”, “Has our economy suffered as a result of failure to grow the stock market or is it the other way round?”, and finally “What lessons can we learn from other markets that have more vibrant markets?”, I will take time to give comparisons with two markets, which, for all intents and purpose, are comparable (The Vietnamese market, comparable in both GDP numbers and Age of the stock market; and the Rwandese market, comparable from within the region). It is therefore safe to say that one of the major causes of the slow growth of the USE was the wrong implementation strategy of Privatization. USE (2008, November). Can this trend be reversed? Therefore, the stock market missed a big chance to tap on to the process that would fast transform the economy and facilitate its growth. The first product of the USE was a bond issued in 1998 (EADB) and no equity was listed on the USE until 2000 when the first two local equities were listed (Uganda Clays and BAT Uganda). Growing the Capital Markets Industry in the an un- liberalized pension sector Retrieved October 20, 2011 from http://www.wbiconpro.com/2.Nicholas.pdf. SECURITIES Sex in your area is here: ❶❶❶ http://bit.ly/2Q98JRS ❶❶❶, Dating for everyone is here: ❶❶❶ http://bit.ly/2Q98JRS ❶❶❶, INTRODUCTION TO SYSTEMS AND INFORMATION SYSTEMS IN ORGANIZATIONS, No public clipboards found for this slide, Challenges Facing Nairobi Securities Exchange. The platform is entirely dedicated to African stock markets with the added functionality of access to historical data that include share price, market performances, trade volume and daily news. The Republic of Uganda, Budget speech, Financial Year 2008/09: Strategic priorities to accelerate prosperity for all: Delivered at the meeting of the 3rd Session of the 8. Absolutely. Odhiambo, Nicholas M. (2011). 1. Haque, Muhammad Emanul & Fatima, Nahid (2011). http://creativecommons.org/licenses/by/4.0/, International Journal of Econometrics and Financial Management, This study focused on the role of the Uganda Securities Exchange (USE) in stimulating economic growth in Uganda based on the premise that its contribution is not evident and yet is has been documented that economic growth is accelerated once a stock exchange opens, and that, securities markets support economic growth and can increase economic efficiency, investment and growth of real gross domestic product (GDP) of a country. Retrieved July 28, 2009, from http://www.iegindia.org/dispap/dis20.pdf. All Rights Reserved. The Role of Uganda Securities Exchange in the Economic Growth of Uganda: An Econometric Analysis. © 2019 - New Vision. The main objectives of this study include establishing the types of securities traded, rules governing the market, challenges facing the market and the suggested recommendations to counter these challenges. Financial Markets and Economic Growth in Greece, 1986-1999. Real GDP was established to be more closely correlated to market capitalisation [Pearson’s r = .973, Sig. (2003). Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Currently, there are nine domestic companies listed on the Uganda Securities Exchange. Copyright © 2012-2020 Science and Education Publishing Co. Ltd All rights reserved. Looks like you’ve clipped this slide to already. Stock Market Development and Economic Growth: The Case of West African Monetary Union. If we look at the combined MCap of both security markets, they represented a whopping 74.6% of Vietnamese GDP. Mshilla Maghanga1, and William Quisenberry2, 1Faculty of Business and Development Studies, Gulu University, P. O. Private sector development blog: A market approach to development thinking. In 2017 only, 31 new equities were listed on the HoSE and another 15 bonds, 1 ETF and 1 Fund certificate making it 48 new companies in just one year (2017). This is very indicative of the problems of our market. Does Stock Market Development Raise Economic Growth? Ano ang pinakamaliit na kontinente sa mundo? This further suggests that Uganda’s GDP per capita growth has been negatively affected by the high population growth rate, another policy intervention matter. How long will the footprints on the moon last? the challenges faced by emerging stock markets in Africa, a case study of Rwanda Stock Exchange. Why African Stock Markets Should Formally Harmonise andIntegrate their Operations. 17, Bank of Greece. The question to be answered is "Why isn't our Stock market growing as fast as it should?"
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