KAMPALA – Ugandans living abroad are being encouraged to consider investment opportunities back home. This message was shared during a webinar focused on exploring investment options and home ownership for Ugandans in the diaspora. Hellen Kanobere Musubika, the Housing Finance Bank Uganda Manager for Diaspora and High Net Worth, emphasized the importance of tailored banking solutions for this community.
Real Estate Investment Opportunities
Musubika highlighted the growing interest among Ugandans abroad in finding better opportunities and sending money back home. According to the Bank of Uganda’s 2022/23 report, personal remittances amounted to US$1,250.3 million. This significant flow of funds indicates a need for banking solutions that cater to the unique needs of Ugandans living overseas.
One major opportunity is in the real estate sector. Housing Finance Bank has developed a specialized Mortgage Financing model to make it easier for the diaspora community to invest in properties in Uganda. This model includes developer financing to encourage the creation of affordable housing, and off-taker financing to help Ugandans buy homes, build residences, or develop rental properties for steady income.
Addressing the Housing Deficit
Musubika pointed out the substantial housing deficit in Uganda, especially in urban areas with a growing young population. This gap between housing supply and demand presents a lucrative investment opportunity for Ugandans abroad. Investing in the housing value chain can help fill this deficit and provide a stable return on investment.
Government Securities as Investment Options
The government’s ongoing efforts to borrow from the public offer another investment opportunity for the diaspora community. Ugandans abroad can invest in Treasury bills and bonds, which are considered risk-free financial instruments. These securities are regularly issued by the Government through the Bank of Uganda.
Treasury bills have short-term investment periods: 3 months (91 days) at 8%, 6 months (182 days) at 9.5%, and 1 year (364 days) at 11%. Treasury bonds, on the other hand, are long-term investments with returns of 14% for 2 years, 13.5% for 3 years, 14.375% for 10 years, and 15% for 20 years. These securities guarantee returns and provide a stable cash flow, making them ideal for Ugandans abroad who may have limited presence on the ground.
Stable Economic Conditions
The Bank of Uganda’s financial report indicates that inflation is currently at 3.6%, within the target range of 5%. This stability increases investor confidence, making interest rates more predictable, which is beneficial for Ugandans sending money back home for investment.
Support Services for Real Estate Investors
Housing Finance Bank has partnered with AVARTS Housing to provide property management services for Ugandans in the diaspora. These services include rental collections, finding tenants, property maintenance and improvements, bill payment, bookkeeping, and financial reporting.
Digital Banking Solutions
To further support Ugandans abroad, Housing Finance Bank offers a diaspora Easy account with online banking. This service allows Ugandans to access and manage their accounts remotely, with the added benefit of personalized support from a dedicated relationship management team.
