MERRY X-MAS

By Muhwezi. D - Director CMIC

Dear friends, as we finish the year 2009, may we plan for next year and stop holding all our mind in one basket.

Let us think beyond the tank.

Otherwise Merry X-mas and happy new year 2010.

Economic Development Thru Investment Clubs

By: Muhwezi D - C/man CMIC

As it has been by Nigerians that a single finger can not kill a tick, so is for financial growth and capital accumulation.

It has been realised that with the pool of funds through an investment club, an individuaal can reach his goal of financial independence ealier than any one may expect. One can start up a business, invest in bonds, shares and unit Trusts as part of the investment club.

In the Saturday Monitor of 18th July 2009, Wanja writes about the need for investment clubs in the economy to enhance development. She gives testimonies from different individuals who have started investment clubs and reached either fully or partly their dreams earlier than they expected. Among her examples, she gives that of Makerere University Business School Investment Club. Honestly read that paper for details.

As we struggle together to develop the economy, let us join hands, form investment clubs and pool funds to reach our goals in time not on time.

For more information about how to establish , manage or improve an investment club, contact;
Capital Markets Investment Club of MUBS on +256 775 599 430
or email:capitalmarketsclub@yahoo.com.

Capital Markets Investment Day

On the 14th day of May 2009, CMIC carried out the CMIC Day which involved the many activities.
On that day, the club involved in keeping MUBS clean and two major areas were cleaned that is the university Dispensary and Dinning Hall.

Most of the members were present in the cleaning session of the two places. This was carried out from 10:00Am-12:30Pm.

At 2:00Pm-5:00Pm, the club organised a talk show under the topic "The Effect of the Credit Crunch on Uganda's Economy" which looked at the origin, causes and effects to an individual and all the sectors of the economy. The talk show started at 2:00Pm and ended at 4:30Pm.

Between 4:30Pm and 5:00Pm, the time witnessed the handover ceremony of power and authority to the new elected executive members.

STOP FIGHTING ABOUT MONEY

By: Muhwezi D - C/man CMIC

Marriage and Money Stress Often Go Hand In Hand.
Marriage and money can prove to be a stressful combination, as many couples fight about money. During stressful economic times, marriages can be strained when money troubles arise.

Here's how to find harmony with your marriage and money.

1.Remain Calm
When tempers flare, people can say things that they wish they could take back -- but can't. It's best for your marriage and money stress levels to remain calm when discussing finances. This means using stress management techniques like breathing exercises, progressive muscle relaxation, exchanging massages, or simply putting on some soothing music. Keeping each other calm can help your marriage, and can help you solve your money problems.

2.Get A Clear View
It may not be fun, but it's important that you both have a clear view of your money situation. You both need to know what you have, what you owe, what you make, and where it goes. Sometimes one person does the bulk of the budgeting, but when coming up with solutions for money problems, it's important for both of you to know where you stand. Get everything on the table, and look at it together.

3.Focus On Solutions
When faced with the sometimes stark reality of money problems, it's sometimes easy to slip into patterns of anger and blame. Don't. This can cause more stress in your marriage, and can actually lead you away from solutions! Focus on accepting the situation you are in now, and working on a clear plan to get to a better financial future together.


4.Work Together
Two heads are better than one, and in a marriage, it's important for the two of you to be on the same page when it comes to money. Work together to come up with a budget that will work for both of you, and stick to it. (You owe it to one another, as well as to your kids, if you have any.) Encourage your partner's ideas, and remember that your marriage and your money situation will do better If you two are managing money as a team.

5.Get Help If You Need It.
If your money situation is quickly deteriorating and you don't know how to make a plan that can save your finances, it may be a good idea to talk to a financial advisor together. This can provide fresh ideas and an educated perspective, and give you both a neutral third party to trust in. If your marriage is quickly deteriorating from money fights, it may likewise be a good idea to talk to a marriage counselor. Money problems can take a toll on a relationship, and a counselor can help you examine your patterns and come up with a healthier way to relate to one another.


Tips:

1.Remain Connected
Even when you're frustrated by your situation, you can still hold hands as you talk, take breaks to give each other massages, share a joke, and keep your connection alive in simple ways. You can help one another through this!

2.Be Aware
If you always seem to fight about money, and especially if you don't entirely know why, it may be a good idea to examine your history and your partner's history and take a look at your 'money issues'. Just being aware of whether you carry negative patterns from childhood, unrealistic expectations, or 'hot buttons' that keep getting pressed, can help you to deal with your triggers.


3.Take a Break If You Need To
If things get too stressful, take a break and do something you both enjoy together, or take some time alone, and then come back after you both have a set of 'fresh eyes' and an extra dose of patience.

4.Remain Calm
I've said it before, and it's important enough to mention again. Staying calm when you're dealing with finances can make the difference between a fruitful planning session and a damaging altercation.

CMIC hosts Swazi visitors

By: Muhwezi D - CMIC C/man

On 4th March 2009, Capital Markets Investment Club was preveleged tohost visitors from swaziland. Ncamiso Ntshalintshali and Esther N. Magagula are both officials from the Central Bank of Swaziland. Ncamiso is in charge of Research and Development while Esther is the in charge of Inspectorate and Surveillance both in the Central Bank of Swaziland. They arrived in Uganda on 22nd February 2009 hosted by the Capital Markets Authority and their over all objective of the visit was to learn about the operations of the capital markets in Uganda.

Being one of the clubs or initiative established to enhance the increased participation in the capital markets in Uganda, CMIC hosted these Swazis in order for them to learn the workings of the club such as how it has managed to continue surviving and operational, the tools it uses and the skills that exist within the club members. The visit to the club was also aimed at establishing the contribution of the investment clubs towards the development of the capital markets.
Such a visit is one of the activities that the club carries out for networking which has been one of the tools for survival of the club since club members learn alot from these networks.

Credit Crunch - What is it?

Meaning

By Muhwezi D - C/man CMIC

This is a money market situation in which loans are hard to get. Credit crunch occurs usually when a government tries to control inflation by imposing restrictions on lending to consumers and small businesses. Also called "credit squeeze". There thus is a sudden reduction in the availability of loans or ("credit") or a sudden increase in the cost of obtaining a loan from the bank.

Cause
Credit squeeze has been caused by the global economic crisis which was sparked off by the business of Le Mann Brothers business in the USA. This incidence has created fears within the financial institutions that give credit to the public.
Of recent, yuo have heard rumours that Barclays bank wants to close, however, this has been made clear by the Bank of Uganda that they just been rumours.

What does this mean to Ugandans
Different experts can give you different answers for this question. Recently a financial expert explained on NTV that in order to get ready for the financial crisis on a short term baasis, one should;
1. Save what he/she has instead of investing it in assets. To her, this is not the right time to invest in assets because as the situation worsens, those who will have invested in assets will not have money to purchase necessities, except those who will have invested the extra incomes.
2. Purchase only what is a necessity. She said this is not the best time to waste money in luxuries. Instead of buying luxuries, this money should be saved for use in the worst days likey to come in future.

In my opinion, this time is best for investment especially for those who want to invest in long term options such shares, unit trusts, land and buildings. The reason why I say this is because their prices are still low and once the crisis ends, those who will have invested are the ones who will enjoy the fruits of the "global crisis". It should however be noted that, if you have UShs 1,000,000 you must invest the whole of it. It is up to you to first consider your budget for the next three months, compare your earnings and decide on how much to save.
It may be better, if you invest 70% of your off-budget income and save 30% for in case purposes. This will help you to be prepared for both the unpredictable future as well as be able to enjoy the fruits with those who will have invested once the crisis is delt away with.

Meanwhile as we wait for the African financial experts to meet and brainstorm on the way forward for the global crisis, be a good planner, be ready for any worst and follow your frugal budget. Above all think about your job-if you are secure and remember; The "Global Crisis" has not ended.

The Impact of the Financial Crisis on the African Financial Systems

As the immediate crisis faced in the last couple of months subsides, and policymakers begin to consider the longer term impact of the crisis in Africa, an emerging view is that the impact on the financial sector in Africa may actually be more significant and longer lasting than first assumed, and the impact on the non-financial sector in Africa will be more notable than has been the case in developed countries.

By Samuel Munzele Maimbo, World Bank Group

Conventional wisdom has hitherto suggested that the impact of the financial crisis in Africa will be limited because the transmission mechanisms between the financial systems in Africa and the rest of the world are weak. African financial institutions, it has been argued, are not exposed to risks emanating from complex instruments in international financial markets because most of the banks in Sub-Saharan Africa rely on deposits to fund their loan portfolios (which they keep on their books to maturity); most of the inter-bank markets are small; and the markets for securitized or derivative instruments are either small or nonexistent. Exceptions to this position are then made for countries like Nigeria and South Africa which are seen as the only countries having meaningful transmission mechanisms with the global financial systems.

Increasingly, this conventional position is being questioned for the following reasons:

Weakened local investor confidence in equities and bonds on African Stock Exchanges
Expectations that investors weary of the markets in developed countries will seek opportunities in African and other developed economies are misplaced. The small size and illiquidity of Africa’s stock markets (partly a reflection of the low levels of economic activity) is likely going to be amplified rather than overlooked as both international and local investors adopt more cautious investment strategies. Thus, while the price-earnings ratios for many African stock markets were above their sectoral equivalents in mature markets in 2007, the ongoing fallout from the subprime mortgage crisis in the US will dampen investment plans. Already, examples are emerging. The market turnover on Uganda’s bourse dropped 60 percent during the third quarter (Busuulwa, 2008). In South Africa, Kenya and Ghana, the stock markets have also been bearish.

This is disappointing. Up until the recent crisis, African stock markets were displaying resurgence and an energy that had not been seen for years. Prior to 1989, there were just five stock markets in sub-Saharan Africa and three in North Africa. Today there are 19 stock exchanges ranging from starts ups like Uganda and Mozambique stock exchanges to the Nigeria and Johannesburg stock exchanges. With the exception of South Africa, most African stock markets doubled their market capitalization between 1992 and 2002. Total market capitalization for African markets increased from US$113,423 million to US$ 244,672 million between 1992 and 2002. Ghana had five new equity listings in 2004; the Kenya Electricity Generating company Initial Public Offering (IPO) in 2006 – the country’s first in five years attracted strong demand and enormous public interest. Since then, the 2008 cellphone company IPOs of Safaricom and Celtel in Kenya and Zambia respectively have both been oversubscribed. This emerging confidence in the African stock markets is going to be negatively affected by the on-going financial crisis.

Slowdown in private sector lending
Unfortunately, it is not unimaginable that in the near term banks will have seen the results of the sub-prime market and decide to ease their hitherto aggressive loan book expansion. Real private sector credit, in particular, has been growing at an accelerating rate, and its median value has doubled in the past decade. Even as a share of Gross Domestic Product (GDP), it has turned the corner, with the median share approaching 18 percent in 2007, about a third higher than at its anemic trough in 1996. Much of this increase was on the back of innovative non-collateralized lending practices. Salary and other cash flow based lending have been on the emergence with positive outcomes for customers in the form of consumer loans. In October 2008, the Pan-African micro-lender Blue Financial’s loan book grew 236 percent and posted earnings growth of 167 percent in the six months to August 2008.

The possibility of overreaching their adoption of conservative credit appraisals processes and procedures does not bode well for the growth of private sector lending on the continent. Trade finance will come under tremendous pressure. With high fuel and food prices, foreign exchange constraints will persist on the continent for a while. A reluctance to lend by commercial banks will make it even harder to find trade financing sources. Of equal concern is the impact of the current crisis on the sources of long term funding. Where credit is still available, banks have already started in increase the cost of long-term finance. Shortening tenure of such loans is equally likely.

This is disappointing after recent years when funds were starting to enter African markets looking for both equity and portfolio investments. This slowdown will increase the need for domestic financing – pensions funds, insurance firms and domestic savings to fill the gap.


Weakened balance sheets and possible bank failures resulting from economic slowdown
In countries where the fall in investments is simultaneous coupled with drops in export earnings, a slowdown in GDP growth, and a sharp drop in domestic asset prices e.g. a local housing market correction, weakened bank balance sheets could result, including in some cases, bank failures. As the financial crisis surges into all parts of the real economy in developed economies, African countries will experience a substantial decline in exports as the rapid pace of trade expansion in this decade decelerates sharply. The IMF now projects that growth in world trade volumes in 2009 will be 4.1 percent compared to 9.3 percent in 2006. A notable part of this fall will be African. In Zambia for example, the economy is likely to take a hit from a share decline in copper prices (-24%ytd).

In this environment, large projects in Africa that require external financing to complement shorter term bank financing will face difficulties in attaining these finances, and where they do, will face higher interest rates, because of flight to safety and greater risk aversion of lenders. At the same time, portfolio outflows will put pressure on currencies for devaluations. Reduction in Official Development Assistance, remittances and tourism receipts will also have a negative impact on the economy. As investments falls, some projects will not be completed making them unproductive and saddling bank’s balance sheets with non-performing loans. Lower commodity prices, combined with a credit crunch and increased risk aversion will make it more difficult to finance and develop capital investments. The economic downturn will result in pressure on the balance sheet of some of the weaker banks in the systems as non-performing loans in some sectors increase. For some banks, failures will occur.

Renewed debate on the role of governments in the financial system
The government bailout of financial institutions in developed countries will be abused by those keen to entrench government involvement in the financial sector – even when such entrenchment is detrimental to the financial system. While many government led programs in the financial sector have been well intentioned, the unintended consequences have often been severe on the level of interest of the private sector in investing in the financial sector as well as the credit culture of beneficiaries. Global experience suggests that despite the seeming advantages of government intervention in broadening access to credit, especially through government-owed banks, public banking services in developing countries have generally not been successful.

There is a close association between such participation and lower levels of financial development, less credit to the private sector, wider intermediation spreads, greater credit concentration, slower economic growth and recurrent fiscal drains. Despite these arguments, the recent massive government purchase of shares in financial institutions will in some cases not be seen as a short term remedial measure, but rather a long term repudiation of government exclusion from the sector – the unintended consequences of this position in the 1970’s and 1980s may yet again revisit the continent if this view finds traction with policy makers for existing and planned government owned financial institutions (Scott, 2007).

Conclusion
The present financial crisis will affect financial systems in African countries differently depending on the present quality of the financial sector. To each there is a litany of policy and technical options for the governments on the continent to consider. These include implementing: management takeovers1; blanket guarantees on all deposits2 reduce reserve requirements3; offering to buy bad loans from commercial banks4 and revise deposit insurance guidelines5 to name but a few that were exercised by various governments during the month of October 2008 alone. Most of these options are for countries that are directly affected by the crisis and are in need of immediate assistance. For longer term financial sector reform options, the governments in Africa may wish to consider longer term options.

Three such options include
(i) Strengthening local investor confidence in equities and bonds on African Stock Exchanges by enhancing, though legislative reforms, the participation of local institutional investor. Pension funds, especially state control pension funds will need to be instrumental in sustaining the development of the market;
(ii) Encouraging private sector lending, especially for Small and Medium Enterprises, by attracting new sources of trade finance by, in some cases, rethinking support for new and existing export promotion facilities, and facilitating Risk sharing facilities in a bid to not only restore confidence in the financial sector, but also sustaining private sector enterprise, and;
(iii) Putting in government ownership policies that ensure that such ownership only takes place when; it is necessary to strengthen the capital base of banks to remove fears of insolvency; the managers have proved unable to raise equity capital from private sources; the bank is essential for the payments and credit systems, and the bank can reasonably be expected to be made viable in the long term. Importantly, governments must have policies in place that ensure that the government’s ownership is temporary and aimed at disposing of the investment once the financial system returns to normal operations and when it is commercially suitable.


References
Berggren A., and Scott, D., (2008) Temporary Government Ownership of Financial Institutions in Times of Crisis, forthcoming

Busuulwa, B. (2008) Uganda Bourse Turnover drops by 60pc, The East African (Nairobi) available at http://allafrica.com/stories/printable/200810290778.html accessed on October 29, 2008.

Caprio, G., Demirguc-Kunt, A., and Kane, E., (2008). The 2007 Meltdown in Structured Securitization. Policy Research Working Paper No. 4756. World Bank: Washington D.C

Cheikhurouhou, H., et al (2007). Structured Finance in Latin America. Directions in Development Finance. World Bank: Washington D.C.

Feyen, E. (2008) Overview of Recent Policy Responses to the Current Crisis, Policy

Honohan, P., and Beck, T., (2007) Making Finance Work for Africa. World Bank: Washington D.C

Irwin, T. (2007) Government Guarantees: Allocating and Valuing Risk in Privately Financed Infrastructure Projects. Directions in Development Finance. World Bank: Washington D.C.

Lin, J., (2008) The Impact of the Financial Crisis on Developing Countries, paper presented at the Korea Development Institute, Seoul, Korea.

Mmegi/The Report (2008) Mature Markets Boost Blue Earnings, The Reporter (Gaborone) available at http://allafrica.com/stories/printable/200810271403.html accessed on October 29.
_______________________________________

1 Oct. 21: Argentina's government announced it might take over the management of $28.7 billion in private pension funds that sharply declined in value this year

2 Oct. 13: Blanket guarantee on all bank deposits in Australia. New Zealand took similar measures. Australia also guarantees wholesale bank funding

3 Oct. 21: Central Bank of Brazil continues acting to tackle the liquidity in the local money market. It announced a program to reduce reserve requirement able to free up to BRL100b to the market

4 Oct. 5: In Chile viable banks were offered the possibility of selling bad loans to the Central Bank, with a repurchase agreement based on future profits

5 Oct. 7: Leaders of France, Germany, Britain, Italy, the European Central Bank and the European Commission agree on bank bail-out guidelines and deposit insurance of E50,000 but stopping short of a Europe-wide solution to recapitalize banks

This article was first published in Access Finance. Access Finance is a bi-monthly newsletter of The World Bank Group published by the Financial and Private Sector Development Vice-Presidency. It disseminates information on improving access to financial services. The four key pillars highlighted are: Inclusive Financial Systems, Credit Reporting, Payment Systems and Remittances. Comments/suggestions can be sent to accessfinance@worldbank.org

Banks Turn To Personal Loans

Jeff Mbanga

Commercial banks in Uganda face a difficult time in the first quarter of 2009 as the risk free government securities market dries up.
Analysts warn that this is likely to force banks, desperate to begin the year on a high, into risky ventures, mostly in the credit market.
Failure to manage those risky loans appropriately could taint the banks’ books of accounts, and force them to tighten their purses in the future. That in turn could have a negative bearing on consumer spending, the biggest contributor to the growth of Uganda’s Gross Domestic Product.
The latest figures from Bank of Uganda indicate that commercial bank credit to the private sector grew immensely in the first six months of 2008. For example, Stanbic, Uganda’s largest bank, increased the amount of its loans and advances during the first six months of 2008 from Shs358 billion witnessed the year before to Shs570 billion, representing a 38% increase.
On an entire industry scale, credit to the private sector shot up to Shs2,840 billion in the year ending June 2008, representing a 56.7% jump, compared to the 23.2% increase registered the previous year. Much of this credit went towards personal loans, which accounted for almost half of the loans.
The banks, whose sales executives are planning to go an extra mile to have customers take up more loans, have received a cautionary note from the International Monetary Fund, which offers advice on macroeconomic policies to nations.
In a press statement about the Fund’s fourth review under the Policy Support Instrument for Uganda released two weeks ago, Takatoshi Kato, the deputy director of the IMF, points out that “Uganda’s banking sector remains generally sound. However, vulnerabilities exist in some areas, reflecting the rapid expansion in bank lending and the significant share of foreign-exchange loans in banks’ portfolios. Prudential supervision needs to remain vigilant to address potential risks.”
Before June 2008, the effect of the global credit crunch, which is partly responsible for the current stress faced within the government securities market, was yet to be felt in Uganda. The rate of inflation, although rising, had not yet reached alarming levels. And share prices on the USE were on a bull run. Even with different investment options, commercial banks still showed a strong appetite to lend to the private sector.
It is on that basis that the Bank of Uganda last week suspended auctions of Treasury Bills because there was not enough liquidity to match BoU’s demand. Thus banks are expected to sail into unchartered territories in the credit market in search of good return on investment.
There is no safe haven on the USE where the value of shares on almost all counters continues to fall. For example, the USE All Share Price Index – a benchmark instrument used to measure the performance of the market – has fallen from 827.82 two months ago to 742.99 early this week, meaning that 11% of the value of share prices has been wiped away.
Luigi Cordeiro D’Souza, Crane Bank’s head of Treasury, believes that “banks might venture into risky assets but they will take strong due diligence to avoid pushing up their non-performing loans (the rate of bad loans).” The industry average of the non-performing assets is estimated at 2.5%, with a number of banks struggling to bring that figure to less than 1%.
The central bank’s annual report 2007 - 2008 shows that even credit to the agricultural sector that had for long been ignored due to the high risks associated with farming, saw an increase in lending.
Although banks are expected to take particular interest in the fast growing mortgage sector, the high rate of inflation is not making it any easier for the banks. With the inflation at about 14%, banks will find it difficult to push up interest rates from their already exorbitant level of 25%. The private sector already complains that interest rates are too high, a situation that could force banks to soak up any inflationary pressures if they are to expand their loan book.
But Cordeiro added that banks are likely to offer loans bearing in mind the lessons learnt from the recent subprime lending in the United States economy, where the high rate of default continues to disrupt the global financial system.
Recent market entrants such as Global Trust Bank, Fina, Eco Bank and Equity Bank are not expected to take an aggressive approach in the credit market at the moment as they invest in infrastructure development, according to financial experts.
Richard Byarugaba, Managing Director of Global Trust Bank, which started operations two months ago, says that the bank will start massive expansion strategies of their loan books within “the next two to three years.”
According to Cordeiro, the new banks are, in the short term, expected to concentrate on opening up new branches to build up their customer numbers before venturing into spreading their credit.
jeff@observer.ug

Thinking is not Meditation

By: Muhwezi D – C/man CMIC

Meditation and or thinking is what everybody experiences every day in our life time whether we want or not. It may be a voluntary or involuntary action. However, what so much is interesting is that, let it be students or teachers, young or old, male or female, to all kinds of people, differentiating meditation from thinking is as hard as telling the difference between non Jews and Gentiles in the Good News Bible, for the Qu’ran Iam not sure! In this article, I try to bring to you the difference between the two “brain disturbing phrases” – Meditation and Thinking.

Meditation is the art of being still, and centering oneself to communicate with the sacred witness. Many people confuse thinking with the act of meditation. Yes, one gets quiet, and one does hear the thoughts of the mind, but that is not meditation. The mind would really like to control you, and not you control it. Meditation is letting go of ego, and relating to the ones soul and body with connection to the mind. Sounds kind of confusing don't it? Well, we shall dig deep and try to give you an understanding of the differences of the two.

While it is true that the practice of meditation is focused on the mind, body and soul, it is also true that these are connections that will help heal us, and make us whole. Many people use meditation to reduce stress; that means they are not creating more stress by thinking about the stress, and how to solve problems. They are simply attempting to relax their mind, and body. Meditation when done in this quiet order will allow you to become healthier, and happier.

So, how does one rid their thoughts while meditating? Thoughts do not go away; they are with us at all times. The Problem to be answered is how can I control the mind and not think? There lies the real problem and the center of conducting meditation. Our thoughts control our life. In other words what we think, how we think influences our every move throughout our lives. In order to meditate learning to "let go" of our thoughts is important, and allowing silence will be our goal.
With that knowledge and hopefully understanding, we are now going to examine some ways of meditating. Find a quiet spot, it can be in your bedroom, in your living room, on the porch, outside, at a park, but somewhere quiet. I personally would suggest either the living room or bedroom, because you want to help your mind or thoughts become quieter. You may sit, or lie down. You may have soft music on, or even a candle. These are tricks that help your thoughts become focused. Sometimes you might want to purchase a guided meditation on CD to help you quiet your mind.
The very simplest form of meditation is as follows: breathe in, and then breathe out. As you are breathing follow your breath all the way through the pipes of the lung and bronchi. As you exhale follow the breath in reverse order. All you are doing is focusing on your breath. Then as you are focusing your mind will begin to wander. Very calmly very easily say to yourself the word "thinking" and then go back to watching your breath. Do not feel guilt, or get onto yourself for thinking just say the word, and then focus on your breath.
Another simple way to begin a meditation is to breathe in the hurt, pain, anger, sadness, or depression from yourself, from your friends, neighbors, enemies, the city, state, country, or world. Breathe in that and focus on one aspect of the above for mentioned. On the exhale breath you exhale love, peace and joy. This type of meditation is called Tonglan, and was taught to me through the readings of Pema Chodron.

The healthy meditation is about bringing in an image of light down through your body. As you are breathing you are mentally (yes, you are using your mind) visualizing a light entering the top of your head, and taking that light all down through your body to your toes. This is the kind of meditation that allows you to focus on your overall health. This is also an example of how to use your thoughts to your advantage of obtaining wealth, and not allowing your thoughts to wander away and bring about more stress.
With meditation comes the responsibility to know what your intention is in performing this relaxing act. If your life feels like complete chaos and stress, then the most important aspect is to relax. To relax during meditation is to take time out of your busy life, and meditate for at least 20 minutes. When you become comfortable then you can do more, but right now 20 is enough. If you are like many of the busy people you can do this in segments. After all if you need training in non-thinking I would suggest this method: Take the 20 minutes and chunk up the time. Do 10 minutes in the morning just before you get up, and 10 minutes in the evening just before sleeping. Yes, this will work. If you fall off asleep you are human, and it's ok, you have completed rested and relaxed. What do you do for lunch? Have you ever thought about taking 10 minutes of your lunchtime, and meditating? Following your breath is perfect for this.

There are many types of meditation to learn about, but these mentioned are easy, and understandable. Your thoughts will become less important, and your mind, body and soul will thank you. Stress reduction is the real goal. When your stress becomes less, then your body, mind and soul will begin to be healthier. You will also have more energy, and you'll sleep better at night. Meditation is definitely non-thinking. Meditation is not solving problems.
The solving of problems will be a by-product of the meditation. As creativity goes hand in hand with innovation in the business world, so meditation goes hand in hand with thinking to find solution to existing problems in our lives and societies.

Wealth Creation Through small Beginnings

Personal Experience Of Capital Markets Investment Club in MUBS.

By: Muhwezi D - C/man CMIC.

Investing is something we do every day. Be it with people we relate to, the activities to which we allocate our time or even more importantly what we spend our money on. It was not until September 2007 when I participated in the Capital Markets University Challenge that I learnt how to become a “wise” investor. This Challenge involved the participation of many second year university students all over Uganda yet only three best students from three best universities would participate in the final phase of the competition. I had heard about the Capital Markets before but not understood its real essence. The challenge started off with the first phase of writing an essay to the set question – “How can a university student create wealth through Capital Markets?” After going through this stage successfully, there then comes the second and final phase of the competition; The most interesting and the most challenging. The finals required the successful students/universities to set up Investment Clubs (ICs), start an income generating business on capital of UShs 100,000. With two other finalists from Makerere University Business School, we set out to recruit new members to establish a lasting investment club that would help members and the public to embrace the usefulness of capital markets in wealth generation.

According to the rules of the competition, this club was supposed to be set up, operated and demonstrate possibility of continuity and sustainability within three weeks. It wasn’t therefore all that easy. Never had I known that this was to pave my way to investing while still young. I developed more courage after remembering the words of: Peter L. Bernstein, “The road to success in investing is paved with independence of spirit, decisiveness and the courage of one’s conviction”, and Cesare Pavese, 1908-1950,“To know the world, one must construct it”
Immediately after being given the task, we started advertising for recruitment for the new club to exist in Makerere University Business School. In November we held the first meeting of the pioneer members, chose the investment priority and structured the administration of which I was elected the club chairman.

Before all this, I had thought that capital markets were for rich people who have big businesses. However, with the investment club experience I have learnt that even people with small or even very small businesses can buy shares and even invest in the Collective Investment Schemes (CIs). After reading about the oldest investment club formed in Detroit by Fredrick C. Russell in 1940, it even gave me more drive. Fredrick’s club started as a mutual club of six people but currently the membership has tremendously multiplied and currently it has a portfolio of over $ 6 million and is still active. (About investment club.com)

The Capital Markets Investment Club (CMIC) of MUBS within a period of less than a year has invested in shares of Stanbic bank (over 2900 shares) and has money to invest in any upcoming Initial Public Offers (IPOs). This has been a great experience in relation to financial and capital markets. With my little money, through the club it has been possible to pool funds and be counted among the “wise investors”. From my experience in the investment club, I decided to purchase shares in Stanbic Bank Uganda besides the investment club-an opportunity I never at one time dreamt of. The lesson realized is that before one participates in the capital markets, one may not easily realize the value and the benefits of this kind of “wise investing”.
In March 2008, the investment club hosted visitors from Capital Markets Authority Kenya and they gave support towards the business in Makerere University Business School carried out by the club. You can imagine what kind of business this was! It was not a big or an every one’s attractive business but just a “kabalagala” (local pan cakes) business. On the MUBS campus, talking about capital markets is now a usual phrase for “good” investors.

“Just with a small business as small as frying and selling pancakes, one can invest alongside great men in company shares? One can sit with tycoons in a company Annual General Meeting and influence decisions?” One MUBS student asked me when the investment club had been formed and had invested in securities.

The investment club has grown so much that we are even approached by parents requesting that we grant club membership to their children to invest with us.

However, behind every success, there are challenges. Yes it is true that the investment club has been growing tremendously but there have been many challenges. For instance balancing between academic pursuits and the club activities. However, this has been overcome by transforming the club from pancake business to savings scheme. This in most people’s ears sounds to be something big, isn’t it? It may be or it may not but the whole question is “Where did the club start?, How much did it start with and how has it grown to that level? The answer is simple- the investment club started small but is growing big because it invests in securities and CIs through which members have learnt how to save and invest.

You may just wonder, most of the club members have individually invested in stocks on the Uganda Securities Exchange and in CIs at African Alliance Uganda. This is so because these members have realized the secret in capital markets as an avenue for accumulating wealth. With only Shs 50,000 initial investment, one can invest in CIs and by buying a minimum of 100 shares of any given company one can invest in stock. One third year student who was helped by the club to invest her Shs 60,000 in shares was so excited about the investment she had made. After the Stanbic Bank Annual General meeting, she invited me for dinner and said, “I was so excited to see myself seated with important people even with my little investment of Shs 60,000! I wish I had known before. I will continue to invest in shares so that my investments can grow”. Currently her investment has grown to more than Shs 150,000.

Who does not want to accumulate wealth through honest means? The basic idea behind investment is to begin small and grow big by investing as much as we can save. From my experience in the Capital Markets investment club, I have learnt that humble and small beginnings in the investment world results into great investments. From my experience, most people ask “How can a simple person like me invest on the Capital Markets?” With any small business one may carry out whether for “kabalagala”, tomatoes and onions or others, it is possible to invest and enjoy the benefits of the capital markets. The market is not segregative, it’s for everyone to participate and enjoy its fruits despite of level of income, status and any other consideration. Nonetheless, remember to invest wisely, to protect your investments.

Capital Markets And Increased Mineral Potentials

By: Muhwezi. D. - Chairman CMIC

Every day, month or year that passes, new mineral potentials are discovered in Uganda. I think in some years to come, Uganda will change from "Pearl of Africa" to the "Mineral country" - so interesting.
In the new year 2009, we see the South-Western region with the highest mineral potential coded Bolck 7 as reported by Fugro Airborne Survey - a South African company. The survey also reveals that the South-Eastern part of the country coded Block 1 and West Nile coded Block 5 have potentials of mineral resources.
reports show that 80% of the country has been surveyed for mineral resources, however, results for Blocks 2, 3 and 4 are awaiting final interpretation and their results are likely to be released in two months.

What do you think will be the result of this increased mineral potential? Of course this will attract investors who will want to commit their capital resources in the Uganda's mining industry. Obviousily this is a sign of economic development in the country.

Do you see any influence of such on the capital market's development. In real sense the mining industry will increase the people's incomes through creation of more jobs, and with increased incomes, savings increase which in turn increases the level of investments. Capital markets being one of the options of investments especially for long term will develop. This will be through increased individual investments, corporate investments, new listings and set up of new brokerage firms as well as investment advisors and even Collective Investment Schemes.
The mineral resources are also expected to enhance income quality to some extent since Ugandans will get employment . This will increase the number of the Ugandan population participating on the Ugandan capital market.

All Ugandans should embrace the idea of mineral exploitation since it will be a base for economic development as well as improved standards of living. Capital markets player such as stock brokers, investment advisors and collective Investment Scheme managers should rise up and join efforts to carry out massive public education about the industry. This should be done country wide even in the up-country regions. It will help the public to be aware of this long term option which they shall utilise once they fetch the benefits from the anticipated fruits of the growing mining industry.

Successful Investment Clubs

Following these strategies can help your investment club enjoy longevity

By Muhwezi. D. J, Matthew S. Scott and Vikki Conwell

WHEN BLACK ENTERPRISE PROFILED the GrassRoots Investment Group L.L.C. in July 2002, the club consisted of a group of energetic, innovative investors who were relying on their individual expertise to improve their profits. "We have people who are in law school, who are engineers, some who work for Internet companies, who own their own businesses, as well as some in banking and sales, and we lean on those individuals," says founder Phillipe Tatem.
Although GRIG had a rocky time adjusting to a volatile market that slashed its portfolio's assets from $200,000 to $118,000 during the tech-wreck of 2000 and the recession that followed, the original idea of relying on the business savvy of its members has proven to be a winning strategy. Since 2000, the group has reorganized and turned that $118,000 into a portfolio worth more than $1.3 million that includes equities, real estate, and business operations such as a car wash and detailing franchise. All told, the club has had a 22% return over the last two years.
GRIG accomplished this by concentrating on making its members better investors and setting up a system that capitalized on the business knowledge of its members. This has translated into investment choices that have a greater chance of success. Instead of having every investment idea vetted by every member of the club, the club now has five distinct "operating teams." Each team finds cash-generating opportunities with equity ownership and then delivers a comprehensive report on the opportunity to the general membership. A member of the management team sits on each of the other teams to make sure the goals of the team are reached.
As international events make the investment environment more challenging, coming to a consensus as an investment group has become more difficult than before. Adopting innovative approaches is one way growing investment clubs can improve their success. In fact, clubs of all sizes can implement strategies that strengthen investment habits among members and increase overall portfolio returns. Here are some secrets that successful investment clubs have used to do just that.

Success starts with information
"The best investors are the best informed," says Kenneth Janke, chairman of Better Investing (formerly the National Association of Investors Corp.). According to Janke, investment clubs have traditionally sought advice from financial advisers, but as the clubs gain more knowledge, their need for advisers lessens. Janke also says the best clubs use technology to acquire more information about the market, opting for discount brokers instead of full-service ones, and investing online.
Successful clubs understand that investment success takes time and perseverance. It requires investing small amounts regularly over the long term despite market fluctuations or cycles. "Getting rich is not something that happens overnight," says Janke. "Some of the clubs that go out of business early do so because they try to trade stocks every month. Even the pros don't do that."
According to Better Investing's 2005 membership survey, the average investment club has a portfolio worth $97,441. The clubs surveyed had an average rate of return of 4%, compared with 4.7% for the Vanguard Total Stock Market Fund. However, over the long term, they outperformed the fund. The 10-year average total return for clubs was 16.1%, compared with 9.5% for the Vanguard Fund.
As a member of a 66-year-old investment club in Detroit, Janke has witnessed the benefits of investing over the long run. When one of his club's original members died in August 2005, after more than six decades of investing no more than $50 a month for a total of $13,800 out of pocket, the club paid his estate $1.6 million. "If that doesn't exemplify the principles of regular investing for the long term, I don't know what does," Janke says.

GrassRoots investment group L.L.C.
Founded in 1997 as a general partnership, GRIG became a limited liability corporation at the end of 2000 to provide cash dividends to members every quarter. The L.L.C. status requires more extensive internal audits, so the organization's streamlined operations structure makes business sense all the way around. GRIG now has 39 members across 10 states and Korea. New members make an initial contribution of $10,000, with another $10,000 due over a 15-month period, and they pay monthly dues of $175 each.
Tatem explains that splitting GRIG up into five operating business teams allowed the club to:
* Maximize members' skill sets and increase member participation by placing people with similar experience, interests, and passion on the same team.
* Reduce investment risk by having teams conduct a higher level of due diligence.
* Increase the return on investment (ROI) by selecting a key group of members to handle initial groundwork and negotiation on potential opportunities.
GRIG uses technology to communicate. "We post all information related to meetings, presentations, general information, and objectives on our Website," says Tatem. "We have teleconferences to evaluate deals within the teams. The teams get final approval at the general meeting via online vote. We conduct online surveys to monitor how teams are meeting objectives and how the leadership within the group is performing."
The new structure has proved successful; the organization's asset value increased from $200,000 in 2002 to more than $1.3 million by 2005.

However, growth hasn't come without problems. Marck Dorvil, senior partner and a member of the Ventures team, says GRIG acquired a $20,000 equity stake in a copy center in Florida in late 2001, but lack of expertise on the part of copy center managers quickly forced GRIG to withdraw, losing about 60% of its investment.

Poverty Alleviation Through Capital Markets

Introduction:
The objective of this article is to provide an insight on how an ordinary individual can use the capital markets to get out of poverty.PovertyIn simple terms poverty can be defined as lack of income and material assets and the absence of basic needs that support life.According to the 2005 study shows that 20% of Ugandans household live in chronic poverty-The poverty report of 2008 shows that more than 7million people or 26% of the total population live in chronic poverty.Despite being at the fore front of implementing a comprehensive poverty eradication strategy, Uganda is like any other African countries, which are still struggling to get a solution to the problem.In this fieldwork I was tasked by the authority to carry public sensitization on how people of low income earners, people at grass root level can improve their wellbeing by forming investment clubs and communities that can participate in the capital markets to eradicate poverty.As it is already indicated it is true, poverty at the grass root level is at the highest level some household can not afford 2 meals a day. The expenditure per adult falls below the poverty line it is calculated on the basis of the shilling amount necessary to purchase a basket of essential foods commodities.Most people interacted with were giving answers which were all related to poverty as a main problem that denies them an opportunity to invest and save in the capital markets industry. As social worker I analyzed the broad perspective and functions of social work the agency adheres to.The agency carries public education in order to create awareness among the public to know that there is an alternative way how they can invest there money as well as saving in buying shares.CMA is also promoting developmental ideas to the public, in order to encourage people to have an alternatives means to generate income rather than depending on one source.The agency also adheres to preventive\ promotive, as one of the main tool of eradicating poverty in the public. This is to encourage people to learn how to utilize they small savings either by forming societies or investment clubs so as to participate in the buying and selling of shares.As a professional social worker, if consulted about the best perspective fitting this organisation. According to me Capital markets authority is providing developmental ideas to the public. In Uganda people have a poor culture of saving, and very few who are interested in investing in shares which have proved to be lucrative business both long term and short term depending on the market forces.The organization’s public education programme is promotive and preventive, in terms of educating people how to use the little they earn in order to accumulate wealth, and to learn how to plan for the future by investing in different economic activities.

Below is the demonstration how poor people can utilize the capital markets to fight poverty.
Unit Trust (collective investment schemes)The CIS is an alternative means of how the poor can fight poverty by pooling their small income together to form a scheme. As earlier on indicated the highest percentage of the population is engaged in subsistence agriculture, which does not earn them sufficient income. The second group is in the private sector.In order for such groups to improve in their financial status they need to form schemes or clubs where each individual will contribute the little saving in the scheme.After a month each individual will have contributed enough to invest in the collective investment scheme.The amount can be trusted to a fund manager who will invest it in shares or treasury bills on behalf of the group in order to accumulate profits for the scheme.The above demonstration shows that the capital markets can be used as mechanism, to raise funds to fight poverty.

THE SKILLS I EMPLOYED WHEN HANDLING THE TASK.
Since Capital Market authority is financial organization and the work involved is mostly economic goals, I applied the following skills.Challenging Skills: The highest number of the questions raised by the different groups and individuals I interacted with was the issue of capital to invest in this industry, and lack of unemployment so as to earn a living and to be able to participate in this industry; these are the main points that featured in this public education drive.As professional social worker I challenged my clients to be innovative and find means of being self employed as the government can not employ every citizen with the few jobs available.As social worker I advised the clients to use the opportunity of forming groups so as to access funds in micro finance institutions to be able to generate income, for example they can start projects like piggery, poultry and other economic activities that can improve they economic wellbeing.In this research the highest number of the clients interacted with, are the youth who covers the highest percentage. They have almost similar problems ranging from early school drop out, early marriage and lack of vocational skills that can enable them to be self employed. The second groups were those who have the capacity to invest but they are reluctant to invest in securities, they only consider in investing in farming and yet this kind of investment is prone to climate factors and diseases. As a social worker I challenged them, to consider in investing in financial instruments as the risks are minimal, and at times they open other avenues like accessing short and long term loans in banks and other lending instutions.

COMFROTATION SKILLS
During this public education drive some questions required confrontation skills.Mostly on poverty and what is the solution to avoid it? How can capital market assist the poor? And what are the benefits in investing in these share business?The above questions are confrontational since they demand answersIn the interactions both on individual basis and the radio talk shows I clearly informed the role played by CMA that is to promote the industry, regulate and protection of the investors. CMA intervention in solving poverty is to educate the public that there is an alternative means to improve the economic status of people by participating in collective investment schemes or buying of shares on an individual basis.Again those who buy shares in the companies that are listed on the Uganda Securities exchange benefit by being share holders that means they have voting rights on important matters in that company by being share holders.Shareholders are also entitled to a share dividend every year but this depends if the company makes profits and it may also in agreement with its shareholders decide to reinvest the profits in the company.The share holders can also benefit by selling their shares when the share price increase from its original share price, this is called capital gain.Share holders can also benefit from a share split, this is when the company shares becomes expensive or the demand for them is too high than the supply.Example given in this case is the shares of Uganda Clays, at the IPO each share was 4000 that was 2000 by 2006each share was trading at 23500 ,they did a share split and each share was 10000 it again raised to 22500 the third time the share split was put 100 current share price is 195 shillings.Bank of Baroda the price per share reached 5000 and share split brought it to 500 currently it is 900.Note the existing share holders’ benefit from the share split because the existing shares are the ones to be multiplied, i.e each Uganda clays share was splited 10 times, this allows the existing share holder to acquire more shares and he can sell and remain with the original numbers of shares.Principles adhered when handling the task assigned to me.I applied the principle of Acceptance, as a professional social worker am supposed to treat each equally without discrimination, in the field work clients of different category approached me and assisted them without grading them regardless of they age and status.Principle of IndividualisationDifferent clients that approached me in the course my field work had different questions which required particular answers that could not be applied to others, there those who preferred to be advised alone not as group for the purpose of understanding and yet some of the problems raised are similar.Client self determinationThough the public awareness campaign was geared at sensitizing the people about the capital markets as an alternative means to invest and save, we were not allowed to decide for the people,, to invest in shares but to educate them the importance of investing in different avenues that are available, again the public was informed that investing in shares involves risks like any other business. The selling and buying of shares involves the brokers who are licensed by CMA and they are members of the securities exchange (USE)This means the decision to invest in shares is left in the hands of the clients; the authority only regulates, promotes, and protects them from fraudsters.As a social worker I used social work role of an empowerer, among the objective of the capital markets authority public education is to empower people of all levels i.e low income earners to form investment clubs or groups and pool resources together so as to invest in collective investment scheme .The resources are then invested in various assets like treasury bills, shares, bonds, property, with sole purpose of generating high returns while minimizing risks through diversification of investments.In Uganda there are three types of unit trust funds in which you can invest each with different requirements The Balanced fund ; This is long term –fund whose assets allocation is mainly in long term products and securities like bonds ,shares, etc. The minimum amount required to invest in this fund is UShs 50,000 only.The High yield fund; This is a fund whose asset allocation is in medium term securities and products. The minimum amount required to invest in this fund is UShs 50,000 only.The Money fund; This is a fund which invests in short term products and securities like treasury bills, current accounts, etc. This fund is better suited for people who wish to save money over a short period of time .The minimum amount required to invest in this fund is UShs 250,000 only. To invest in CIS you contact a fund manager.Apart from social work I applied knowledge from other course units especially economics and social services.Since most CMA work is more of financial related, economics dominated the field workAnd this is determined on the questions the clients were asking, which were all geared at the alternative saving and investing to the public.Though there were other questions but all were related to one unit economics.Challenges faced during the practicum and how they were handled?The challenges that I faced during my field work were mostly to convince the people about the new ideas of investing in shares, and yet the public perceive such ventures to be for the rich who can only participate.The other problem was the way people understood the whole concept, people were relating CMA to institutions like micro finances, some micro finances have conned people their money promising to give them big loans if they open accounts with tThere was a problem of interpreting the economic language which most people failed to understand though there was brochures in local languages still an interpretation was required, even those in English still people wanted further understanding of the whole idea.During my internship at the capital markets authority, I was able to use the resource center so I was able to answer most questions, and I gave advice to those who picked interest in investing in shares. For the schools we visited it was interesting because the students learn the capital markets in the economic subject but without going in details so this was an opportunity for them. The impact I got on my life and my future career dueto the fieldwork.The fieldwork helped me to acquire knowledge in terms of financial matters and it also helped me discover the way how people can cooperate to raise funds in case of a common goal. The field work also gave me the opportunity to interact with people, and know the problems there are facing mostly in villages, where poverty has dominated the lives of the majority. Areas like capital markets is too far they concern because there not able to solve even the problems they encounter like affording proper health, enough food, and other basic needs.The fieldwork helped me to express my self in public, to be able to interact with people of different age and those with different opinion on the fieldwork I was doing it was challenging experience.Conclusion: The capital markets authority in Uganda is still its infancy, and according to me the capital markets authority has done a good job, given what is on the ground.To compare CMA Uganda with other emerging markets in Africa the progress is promisingDeveloping capital markets is an evolutionary process that takes a long time to accomplish. The process is complex it entails changing the investment culture of the entire community. Fortunately there are other emerging economies that have been successful in developing their financial markets. This means we in Uganda we can also follow the same approach to develop our market. All that is required is to enhance programmes like public education and others that have been successfully implemented in other emerging markets.Capital Markets Authority requires to find other source of funding in order to increase the public education campaign, this is evident on the ground little is known about the whole industry save for the small percentage of the population that is informed.I am convinced that the increase in dissemination of information to the public will enhance fully participation of the public country wide.Further more I suggest that Uganda Christian University Mukono should sign a Memorandum of Understanding with the Capital Markets Authority so as to include the capital markets as course unit in the university curriculum. This will help the students from different faculties to benefit from the authority in gaining knowledge, which is useful for academic purpose and the students can be taken for internship by Capital Markets. At the moment it’s only Makerere University that has signed a memorandum of understanding with the Capital Markets Authority.

An experience at the 12th ASEA conference

It's a rare opportunity to see students called from University to have an experience with diginitories,honourable members,chief executives of all stock exchange companies in not only East Afirca but the whole of Africa. I glady mingled with top exective officers of private companies and rubbed shoulders with corporate magisrates of leading brokerage firms in Africa. It included not only the true African breeds but an exotic mixture of likely investors I should say,I met one exhibitor from the United Kingdom and we shared alot about the technologies used for share trading. Not much I could say because I had only limited time to spend with them since there was a cocktail at 6:00pm, I missed that to attend my evening lectures,besides I was registered as an exhibitior and I was locked form meeting the big men. Any way soon enough I was whisked away back to my exhibition stall. Little did I know that the high profile digintories would engage with me at the stall. With a smile and embraced knowledege of custmoer care services, I worked hard to pull them to stall for corporate chat especailly the foreiegn type I wanted to make them feel at home in a close African continent where we shared everything apart from our distant locations.There I met a Ghanian diginitory,he seem to want to interact with me so I hit the road soon we exchanged cards. Of course it was my boss's card I exchanged.I remembered the theme of the conference which was lavishly opened by his excellency the President of Uganda Yoweri Kaguta Museveni at the serena confernce, "Transforming African economies through the capital markets",not exactly but it awas something like that.
To this day I ponder in my head as to whether as Uganda or Ugandans we really benefited through the Uganda securities exchange which hosted the confernce. During the conference I overheard some one say that a friend form a certain country came and the best she knew she could do for her self was to interact and net work with people from countries she has never gone to most of all enjoy her time at the conference thats what matters because none knows whether what they discussed will be implemented or left for the next generation to build from.

Will NIC IPO Be Worth Of Investing?

You have read, heard or even told others that national Insurance Corporation wants to sell its shares to the public during the Initial public Offer it has planned for long. Indeed it is true and most probably this year it is going to be real and it is what most of us are yearning for.

In the minds of many, however, since there has been and there is a global crisis, the question about this IPO is, "will it be successful and will investors surely gain?" we all know that the last IPO that we have seen did not give good results. (Those who participated in SafariCom IPO). But remember this was the stock which was listed on the foreign market-The Nirobi Stock Exchange(NSE) thus there was a fluctuation in the exchange rate which made those who were refunded to lose some of there money. The problem was that during the purchase of the shares, the transactions had to be carried out with the Kenyan shilling which raised its demand, there by becoming expensive to buy at as high as 1Ushs=28Kshs. At the time of refund due to share over subscription, the kshs had dropped to as low as Kshs23. This means that there was a loss of Kshs5 per share refunded. However, the NIC IPO is a domestic stock thus will not be affected by the exchange rate. In any case the domestic IPOs in Uganda have been registering success. Once this chance comes, let us all use it and invest to enjoy the benefits of IPOs most especially those who missed out the Stanbic IPO. Being a young market, the Uganda Securities Exchange (USE) is an ideal for those who wish to accumulat wealth. let us start the new year 2009 in style and with a greater sense of investing to develop our economy.

With the cross-listing of kenya Commercial Bank (KCB) on the USE and now with the anticipated coming of NIC IPO, it is an indication that the capital markets are growing. don't you wish to grow with those who are growing?, or you want to be a laggard-watch while others grow. I think investing now for long term is an ideal for all ugandans because once the depression is over, those who will have invested wioll gain. However, remeber to seek stock broker advice before reaching a decision to invest. With NIC IPO, read the prospectus carefully and seek any relevant information necessary to you as an invesor. Otherwise it will be worth for you if well evaluated and anaysed.