Kampala, Uganda | URN | The Capital Markets Authority (CMA) has called on business owners whose operations have been affected by the COVID-19 pandemic to consider investing in safe assets like government securities and cash investments.
The Capital Markets Authority (CMA) led by its CEO, Keith Kalyegira said this on Friday 19, June 2020 while appearing before the National Economy Committee.
Kalyegira was discussing effects of COVID-19 on the capital markets, a financial system that deals with raising capital through shares, bonds and other long-term investments.
According to Kalyegira, during difficult economic times like the COVID-19 lockdown, savers are usually advised to turn to risk free assets like government securities, fixed deposit accounts and cash investments which give them interest yet they are also safe.
He has now called on business owners who cannot import goods from parts of the world and also engage in meaningful business at the time of COVID-19 to invest in financial instruments and also preserve their capital.
He says they are also advocating for collective investment schemes which can involve low level Ugandans and small business to invest. In this case, the business gives their money to government and can withdraw it upon maturity with interests or just preserve the capital during the lockdown.
Kalyegira also says that small business owners have small savings which they cannot deploy during this time of the pandemic. He says they hope to improve their outreach to the ordinary Ugandans to safe their money through the financial instruments.
Syda Bbumba, the National Economy Committee chairperson says that the current investment strategy has left out ordinary Ugandans and now involves only the elite. He says it’s time for the Authority to devise means to involve ordinary people.