The Uganda Securities Exchange (USE) on 31st August 2017, received formal approval from the Capital Markets Authority (CMA) to operate a demutualized entity stock exchange in accordance with the requirements of the Capital Markets Authority [Amendment] Act 2016 and the Capital Markets Authority (Establishment of Stock Exchange) Amendment Regulations 2016.
Efforts to demutualise the Exchange have been underway since 2007 and the approval of the demutualization marks a great milestone for the USE and the Ugandan capital markets as a whole. In demutualization, the ownership of the Exchange has been separated from the trading rights of its members (the stock brokers). This will allow for an independent, transparent and flexible governance structure that fosters decisive action in response to all the changes in our operating business environment.
As Uganda’s principal stock exchange, the demutualization is our statement of commitment to do better, to be transparent and to adhere to strict corporate governance standards. We hope that it will build investor confidence in our business, allow greater investor participation in the governance of the Exchange and place us in a better position to facilitate the growth of businesses and the Ugandan economy as a whole.
The approval also paves way for the planned self listing of the USE through an Initial Public Offer (IPO) that we hope to achieve in the next couple of years.
We would like to thank all our esteemed stakeholders who have steadfastly supported us through this entire process including the Government of the Republic of Uganda, the Bank of Uganda, the CMA, the Board of Directors of the Exchange, the brokerage firms, the Custodians, the employees and entire management of the Exchange.
