Uganda Securities Exchange (USE), Executive Director Paul Bwiso, said there is money out there but investors want to know what a company’s prospects are, and ownership structure, yet many companies in Uganda don’t want to disclose much about their operations.
Companies are not accessing long
term financing due to failure to disclose details of their operations to the
investors as a basis for giving them money.
Uganda Securities Exchange (USE),
Executive Director Paul Bwiso, said there is money out there but
investors want to know what a company’s prospects are, and ownership structure,
yet many companies in Uganda don’t want to disclose much about their operations.
This was the message at the 2019 Financial
Reporting-FIRE Awards, organized by the Institute of the Public Accountants of
Uganda (ICPAU). The awards are given to companies that beat others in financial
reporting and disclosing much of the information that investors look out for.
According to Bwiso, some
companies have seen their owners siphon money out of them and prudent reporting
would ensure that investors spot this.
//Cue in; The issue of governance...
Cue out... sustainable investment.”//
Keith Kalyegira, the Executive
Director of the Capital Markets Authority said that integrated reporting and
good corporate governance is a must for companies seeking to access long term
“Some firms have a board of
directors, a key component of corporate governance. For some, you find a wife
is a director while the children are running key departments – this has
an impact on how a company operates,” he added.
National Social Security Fund-NSSF
Deputy Director Patrick Ayota said recently that the fund tried to invest in
some local companies but was turned away by the refusal of their owners to
reveal key information.
One of the ways to access long
term finance is by floating shares on the stock exchange where the public buys
shares into your company. In Uganda, only two companies have listed in the last
eight years, making it one of the dullest exchanges.
Buganda kingdom premier Charles
Peter Mayiga called out accountants to uphold integrity and not abet corruption
that is eating up both public and private sector.