MICROCAPITAL BRIEF: Uganda Securities Exchange (USE) Relaxes Requirements for Small and Medium Enterprises (SMEs)

The Uganda Securities Exchange (USE) has decided to allow “profitable Small and Medium Enterprises (SMEs)” to receive financing from investors at the exchange without facing “stringent capital [requirements]” [1,2]. SMEs can now be listed on the exchange if they have “paid-up capital” of UGX 200 million, the equivalent of over USD 106,000, as opposed to the previous requirement of UGX 1 billion, the equivalent of over USD 533,000 [1]. Additionally, SMEs must have assets worth UGX 400 million, the equivalent of over USD 213,000, a minimum of 100 shareholders after the initial public offering (IPO), and two years of audited financial statements [1]. Prior, one thousand shareholders were required, as well as five years of audited financial statements [1]. Simon Rutega, the Chief Executive Officer of the USE, has stated that this decision is intended to “give Ugandan SMEs access to cheaper finance from larger investors like corporate companies, pension funds and retirement benefit schemes” [1].

By Christopher Maggio, Research Assistant

About:
Uganda Securities Exchange

Description:
The Uganda Securities Exchange is the primary stock exchange of Uganda. It opened in 1998. It has facilities to trade coporate bonds, ordinary shares, preference shares, treasury bills, commercial paper, government bonds, and asset-backed securities.

Organization’s Website:
http://www.use.or.ug/index.php

Contact:
Uganda Securities Exchange Ltd.
Plot 1, Pilkington Road
Worker’s House, 2nd Floor, Northern Wing
P.O.Box  23552, Kampala, Uganda
Tel : +256 – 414 – 259-585, 342-818, +256 – 312 – 370-815, 370-817, 370-818

Fax :+256 – 414 – 342-841
Email: info@use.or.ug
Website : www.use.or.ug

Additional Resources:
Uganda ‘Monitor Online’ article ‘Softer rules for SMEs to list at stock market': http://www.monitor.co.ug/artman/publish/business/Softer_rules_for_SMEs_to_list_at_stock_market_95314.shtml

Bibliography
[1] Uganda ‘Monitor Online’ article ‘Softer rules for SMEs to list at stock market': http://www.monitor.co.ug/artman/publish/business/Softer_rules_for_SMEs_to_list_at_stock_market_95314.shtml
[2] Uganda Securities Exchange: http://www.use.or.ug/

Source Article: Uganda ‘Monitor Online’ article ‘Softer rules for SMEs to list at stock market': http://www.monitor.co.ug/artman/publish/business/Softer_rules_for_SMEs_to_list_at_stock_market_95314.shtml

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