Josephine Okui Ossiya (L) and Commissioner Joseph Enyimu during the recent Entebbe conference
HABARI DAILY I Kampala, Uganda I The Uganda Government, through the Capital Markets Authority (CMA) is preparing to introduce its first Sukuk, an Islamic finance instrument, with an aim of diversifying investment opportunities.
Sukuk is the Sharia-compliant equivalent of a conventional bond. Instead of representing debt with guaranteed interest (which is prohibited in Islam), a Sukuk represents partial ownership in a tangible asset or project.
Josephine Okui Ossiya, the CMA Chief Executive Officer said investors earn profits generated by the asset, such as rent, rather than fixed interest.
“We are also working on an Islamic product. Very soon we’ll be issuing a Sukuk. The more products we have, the more active the market is, and we support the transformation that we are looking at,” she said during the 14th Certified Public Accountants (CPA) Economic Forum.
Held at the Imperial Botanical Hotel in Entebbe, between July 15-17, the workshop attracted up to 300 accountants from all over Uganda.
Digital Transactions
Ossiya added that the CMA is also moving to establish a legal framework to regulate digital transactions involving virtual assets, an area that has expanded rapidly but currently lacks dedicated legislation.
“We do not have a law that covers digital assets. We are currently putting in place a virtual assets law that is going to provide some form of regulation around digital assets.”
She said establishing a clear legal framework would strengthen investor confidence, enhance transparency and encourage innovation while protecting participants in Uganda’s growing digital economy.
“We believe that the growth in the country’s capital market is going to come from the digital assets field. There are many opportunities that we need to take advantage of.”
Timothy David Ediomu, the president of the Institute of Certified Public Accountants of Uganda (ICPAU), said the country currently has a huge trust deficit which needs to be bridged if more investment is to be attracted.
“Trust and confidence remain the foundation of successful financial markets. These are critical areas. The members in this room contribute a lot to providing confidence and trust for those who want to participate in the market,” he said.
He underscored the role of professional accountants and regulators in building a resilient investment environment.
Joseph Enyimu, the Commissioner for Economic Development Policy and Research at the Ministry of Finance, Planning and Economic Development, called upon accountants to participate in the 10-fold growth strategy, where government aims at growing the Ugandan economy tenfold by 2030.
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