Govt securities yield shs1.64trillion in September
In a robust performance, Uganda’s government securities market raised a total of Shs 1,64 trillion in September 2024 through two Treasury bill auctions and one Treasury bond auction. This significant inflow highlights the continued investor confidence in the country’s debt instruments and the government’s strategic use of securities to manage fiscal needs.
Out of the total amount raised, Shs 539.88 billion came from Treasury bills (T-Bills), while the bulk, Shs 1,100.20 billion, was generated from the Treasury bond (T-Bond) auction. These figures reflect a growing appetite for longer-term investments among investors, aligning with Uganda’s broader debt management strategy.
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Allocation
The government allocated the funds raised in September as follows:
Shs 630.69 billion went towards refinancing maturing treasury instruments, ensuring that existing debt obligations were met without disruptions.
The remaining Shs 1,009.39 billion was channeled into financing other critical items of the national budget, including development programs and operational expenses.
This fundraising effort underscores the role of government securities in bridging financing gaps while maintaining macroeconomic stability.
By refinancing maturing debt, the government mitigates rollover risks and stabilizes its debt portfolio.
Additionally, the funds directed toward budgetary needs help drive public sector investment in infrastructure, education, healthcare, and other priority areas.
The performance of the September auctions also signals sustained investor confidence in Uganda's economic fundamentals, despite global uncertainties.
The balance between short-term (T-Bills) and long-term (T-Bonds) instruments allows the government to cater to diverse investor preferences while securing the liquidity needed for economic growth.
As Uganda continues to leverage government securities for fiscal management, the focus remains on ensuring sustainable debt levels and transparent resource allocation.
The success of the September auctions sets a positive tone for the remainder of the financial year, reinforcing the critical role of domestic financing in supporting national development goals.
Investors, both local and foreign, are expected to remain key stakeholders in Uganda's economic trajectory, with government securities serving as a vital tool for achieving the country's fiscal and developmental objectives.
