Uganda is emerging as a preferred destination for risk-on investors seeking opportunities in frontier markets, according to Bloomberg.
The country’s relatively stable macroeconomic environment, coupled with ongoing infrastructure and energy projects, has drawn portfolio inflows, as reported by the Uganda Investment Authority. Reuters say investors are “squeezing the last drop” from frontier markets, targeting high-yield government securities, banking equities, and energy ventures.
Financial experts note that while frontier markets are inherently riskier than emerging markets, Uganda’s improving fiscal management and regulatory reforms are making it more attractive for international capital, according to Africa Business Insights.
The surge in investment is expected to support Uganda’s economic growth, particularly in the energy, infrastructure, and financial services sectors, while also increasing competition for capital across the East African region.
