Is the Umeme IPO a Bargain?

Photo by Stefan Gara

It’s been a long dry spell for Ugandan IPOs. The Uganda Securities Exchange hasn’t seen a new local listing since the National Insurance Company floated some shares back in March 2010 – more than two and a half years ago.

So, when the national electricity distribution company, Umeme, launched its IPO last week it created plenty of buzz in Kampala.

Should retail investors sign up for some shares? Or should they avoid them like a live wire?

How to Invest on the Uganda Securities Exchange


I know I’ve been posting an awful lot of “How to” articles lately, but when this Kony 2012 stuff broke last week I felt the need to try to help balance the interweb’s recent coverage of Uganda.

Let me be clear. Uganda certainly has its problems. Kony is one. Corruption, AIDS, and an increasingly dictatorial president are others.

But Uganda also has some things going for it that could make it attractive to frontier investors.