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.