Uganda: Investment Decisions to Consider As Economy Recovers

The economy was undeniably impacted due to the Covid-19 pandemic, with many businesses closing, others struggling to stay afloat and some continually doing their best to innovate in order to recover from the heavy financial burden experienced in 2020.

With the stock markets depreciating, interest rates on returns on investment dipping and investment assets frozen or stifled; 2020 was a time of reckoning, rethinking and re-strategizing for individuals passionate about growing personal wealth and driving towards financial security.

However, according to projections from economists, the economy is slowly recovering with a number of sectors opening up for business and normalcy starting to recuperate, giving a glimmer of hope. Financial investment is an essential venture for personal growth, economic security and creation of wealth.

Though slow, the economy is reported to be growing at rate of 3 per cent according the Bank of Uganda monetary policy statement of December, 2020.

This presents an opportunity for all of us to make conscious life-changing investment decisions to cushion ourselves from further effects of uncertain times as these. Here are quick tips to set you on the right trajectory, all factors constant.


It has been said in many forums that real estate [land and housing] is the safest mode of investment. While true, this comes with an extended return on investment period.

To avert this, a wide range of investment in different classes of assets is a critical investment tactic in terms of averting risk and accumulating diverse returns overtime. The unprecedented financial times that many businesses are recovering from is an insight into the need to consider having more than one source of investment.


Long-term investment as opposed to short-term investment provides the potential for compounding and amassing wealth overtime.

Much as short-term investment may not be as costly or delayed in terms of return, the cost is riskier; therefore investors and those intending to invest should consider injecting monies into projects like bonds, treasuries or money markets that overtime provide multiplied, compounded and, to great extent, guaranteed income.

Real estate will also fall in this category and will provide for both immediate securities should you need liquidity or frequent and recurrent revenue; in the case of commercial or residential building, it would be monthly rent from tenants.


Fixed income investing is a viable avenue that not only provides investors with fixed income as a return on investment (ROI) at regular and consistent intervals but is also a very safe tactic in terms of capital preservation (money invested doesn’t lose value overtime).

Because of the recurrent payments as ROI that is resultant of investing in assets like bonds, treasuries or money markets, you are rest assured of an additional source of income, especially where the assets perform well.

Fixed income investment also enables an investor avoid having to deal with the market’s unpredictability and the uncertainty that comes with it.


When planning or intending to make an investment decision, it is important to put the payback period into consideration. How long will it take for your business to score returns?

You don’t want to invest and wait for an unplanned and prolonged period before you realize any returns on investment. Therefore, whatever an investor injects their money into should have a relative payback period.

Investors should put emphasis on calculating how much has been invested and how much time it will take for the returns to be registered before fully investing into a business or project.

If you invest your money rightly today, the chances that it will increase are inevitable, thus enabling you live comfortably through retirement or achieve financial goals like starting a business, building a house, buying a car or taking children through school.


Money is scarce and no one individual on his own can meet all his financial and investment goals if he or she is to turn around ventures quickly.

With the right team and people on board, group investments are a gold mine because they raise capital in a short period of time, they spread and minimize risk among the group members and have a resource rich composition.

Today, investment clubs or groups have people from all walks and levels of life; accountants, tax consultants, lawyers, doctors, carpenters, businessmen, marketing and communications professionals, engineers, grocery shop owners, foresters and barbers, among others.

With such wealth in human capital, this diversity will spur the group in ways unknown and they will support each other on a diverse number of projects and at different levels. Groups, however, require rules and regulations as well as rules of engagement that clearly define roles and responsibilities to ensure consistent and unwavering involvement of members.