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Uganda: Privatised Firms Should Sell Shares to Public - Rugunda

14.07.2017

 | Source:  The Monitor; All Africa

About 60 enterprises had by 2002 been privatised by the government. Some of these companies, according to the Ugandan Prime Minister were required to list sell shares to the public by listing on the Uganda Securities Exchange (USE) and ALTX East Africa Exchange.

In 1991, the Uganda government started divesting its interests in several enterprises, giving some a condition to sell their shares to the public.

About 60 enterprises had by 2002 been privatised by the government. Some of these companies, according to the Prime Minister, Dr Ruhakana Rugunda, were required to list sell shares to the public by listing on the Uganda Securities Exchange (USE) and ALTX.

Currently, Stanbic Bank (acquired UCB), Bank of Baroda, National Insurance Corporation, Uganda Clays and British American Tobacco are the only companies to have issued shares to the public.

Umeme also sold shares to the public.

"I would also like to appeal to the public interest companies in sectors such as telecommunications and banking to consider selling a part of their shares to the public.

"Companies that were formerly government owned, companies that were privatised, whether or not this was a condition in the selling agreements should also consider selling some shares to some Ugandans who have supported their growth as customers, suppliers, and employees," Dr Rugunda said during the launch of the Capital Markets Development Masterplan at the Kampala Serena Hotel yesterday.

The USE has only eight locally listed companies and about 40,000 retail investors - a number that remains low.

The last listing on the USE was Umeme in 2012.

Several of the other privatised companies, despite doing well, have not sold shares to the public.

Talking to Daily Monitor yesterday, the spokesperson of ministry of Finance, Mr Jim Mugunga, said: "In those days, when some of the companies were supposed to list, the stock exchange was not yet established. Read more on All Africa.

Source: All Africa