KAMPALA, Uganda (Oct. 2, 2025) — Absa Bank Uganda has relaunched its custody services, a critical function for institutional investors, in a move the bank intends to strengthen Uganda’s rapidly developing capital markets.
The service is designed to provide secure safekeeping, efficient settlement, and comprehensive regulatory compliance for assets held by major investors, including pension funds, insurers, and asset managers.
“We are proud to offer a full suite of custody services that combines global standards with local expertise,” said David Wandera, the bank’s managing director, at the launch. “Our goal is to empower investors… to safeguard their assets, make informed decisions, and participate confidently in the growth of Uganda’s financial markets.”
The reintroduction of the service comes amid a period of substantial growth in Uganda’s financial sector, which has been driven by regulatory reforms and increased institutional saving.
According to data from the Capital Markets Authority, assets under management (AUM) by regulated fund managers reached 4.78 trillion shillings by the end of December 2024, reflecting a 4.7% increase over the previous quarter. Fixed-income instruments, primarily Government of Uganda bonds, dominate the market, accounting for 62.1% of the total AUM.
Additionally, the Uganda Retirement Benefits Regulatory Authority reported that the pension sector’s assets grew 18% in the 2023/24 fiscal year, rising from 21.41 trillion shillings to 25.4 trillion shillings. This substantial pool of capital accounts for 12% of the country’s Gross Domestic Product.
Absa’s custody services—which include corporate actions monitoring and portfolio reconciliations—are directly aimed at supporting this growing class of institutional investors, such as occupational pension schemes, collective investment schemes, and life insurance companies.
The relaunch in Uganda is a key part of the broader Absa Group strategy to establish a pan-African custody solution. The bank has already successfully launched similar operations in multiple markets, including Kenya, South Africa, and Ghana.
Wandera noted that the bank has made significant investments in its technology infrastructure to ensure a high level of security and efficiency.
“We have made significant investments in technology to provide a tech-driven solution,” Wandera said, emphasizing a focus on secure data handling and real-time portfolio visibility for clients.
Through its connection to the wider Absa Custody franchise, the service will provide Ugandan clients with access to more than 80 international markets via a single point of contact.
Absa Bank Uganda stated that by providing reliable custody solutions, it aims to enhance market liquidity, attract foreign investment, and contribute to the overall stability of the nation’s financial system.
