KAMPALA – Financial experts in Uganda are urging individuals to diversify their investment options, citing treasury bills and bonds as viable alternatives to traditional savings methods.

During a session hosted by PostBank Uganda on its X Space platform, experts highlighted the benefits of investing in government securities, which offer competitive interest rates and relatively low risk.

“Treasury Bills and Bonds can be found in two markets which are termed primary markets, where the government has a defined auction calendar to enable one to know when a treasury bill, a treasury bond is going to be auctioned,” explained Iga Huzairu, Head of Financial Markets at PostBank Uganda.

“A secondary market is available every day at any point in time. One can buy these securities from any commercial bank at any point in time. For these securities, the minimum amount you can invest is Ushs. 100,000 and above. So, anyone can invest in these securities as long as you have 100,000 Ugandan shillings and above,” Huzairu added.

Financial and Investment Analyst Alex Kakande noted that investing in treasury bills and bonds can provide better returns than traditional savings methods, such as buying land.

“For an average Ugandan, investing in treasury bonds can provide a better return over the long term compared to investing in real estate,” Kakande said.

Kakande cited an example of an individual who buys a plot of land in a satellite city for Ushs. 7 million, which may only appreciate in value by Ushs. 500,000 over time.

“If that money had been invested in treasury bills, it would have earned an interest rate of 13.5% or 14%, which is much better,” Kakande explained.

According to the 2023 FinScope Survey Report, 60% of Ugandans engage in formal or informal savings, representing a 6% increase from 2018.

However, experts emphasize the need for continued financial literacy efforts to encourage individuals to diversify their investment options and achieve financial independence.

By investing in treasury bills and bonds, individuals can boost their personal income and improve their livelihoods, experts say.