Ugandans in the diaspora tipped on investment options back home
Hellen Musubika, the Housing Finance Bank (HFB) Uganda manager for Diaspora and High Net Worth, has said that the economy continues to post impressive growth, guaranteeing investors a return on their money.
She made the remarks during a a webinar held on June 15, that focused on exploring investment opportunities and home ownership by Ugandans in the diaspora.
Keep Reading
She noted the growing number of Ugandans in search of better opportunities in the diaspora with remittances of US$1,250.3 in personal transfers according to the BOU 2022/23 remittances report, hence the need for banking solutions that match the needs and lifestyle of this niche.
She said the government’s continued push to borrow from the public presents the diaspora community with an opportunity to invest in Treasury bills and bonds.
“These are risk-free short-term financial instruments for investment regularly issued to the public by the Government through the Bank of Uganda. The Investment Period for Treasury Bills is short-term tenors of 3 months (91 days) currently at 8%, 6 months (182 days) at 9.5%, and 1 year (364 days) at 11%,” she said.
“The treasury bonds are long-term in nature with a current return of 14% for an investment of years, 13.5% for a 3-year investment period, 14.375% for 10 years, and 15% for 20 years,” she added.
According to the BOU financial report, inflation is currently at 3.6 percent which is within the target range of 5%. For Ugandans in the diaspora, stable inflation increases investors certainly, interest rates are more predictable which is ideal for remitting money back home for investment.
She further highlighted that in partnership with Western Union, swift, Money Gram, and Terra Payments, Housing Finance Bank has simplified safely sending money back home for the diaspora.
According to Musubika, the growing young population, currently over 45.5 million people according to UBOS digital Census, with a growth rate of over 30% suggests a substantial housing deficit that needs filling especially in urban centers.
“This gap between Housing supply and demand presents an opportunity for Ugandans in the Diaspora to invest in the Housing Value chain,” Musubika said.
She explained that HFB has also tailored Mortgage Financing models that make it easy for the diaspora community to invest. Some of which include; Developer financing to stimulate affordable housing development, off-taker Financing to enable Ugandans interested in Buying homes, Building for occupancy, and Developing rentals for cashflows.
Sarah Muloki (Not real name), who works in Germany, asked whether the bank could help her sell her house in Uganda and invest that money in something else.
Musubika responded that the Housing Finance Bank has mortgage financing solutions that buyers can take advantage of to simplify her house sell-off at her convenience.
“To encourage you to save, we strongly recommend using this account with no monthly charges. You can also use the Mastercard to be able to pay for goods online and buy them in a supermarket. All those points-of-sale transactions are enabled with our Mastercard. You can also be able to withdraw cash using the Mastercard internationally,” she said.
Musubika noted that HFB has different investment options that customers can leverage to passively grow their money. These include savings accounts, fixed deposit accounts, and Toto savings accounts for children, to save for their children’s university education and other needs.
