What Is the Minimum Amount You Can Invest on the Uganda Securities Exchange?

The Uganda Securities Exchange (USE) is full of companies poised to benefit from rapid economic growth stimulated by the Ugandan government’s heavy investment in new roads and electricity infrastructure.

But how much money do you need to open a USE brokerage account and get started investing there?

Minimum to Invest on USE

There is no minimum amount required to open a trading account. You can start with however much you can afford.

Uganda Securities Exchange
Photo by Rod Waddington

However, when you decide to purchase a stock you must purchase at least 100 shares per transaction.

Therefore, the minimum investment amount depends on the current price of whichever stock you intend to buy.

You can find the current price of each stock listed on the USE scrolling across the top of this page:

Uganda Securities Exchange – Share Prices

Don’t Forget Commissions and Fees

When you buy or sell a stock you will also be charged 2.1% of the total trade value to cover your broker’s commission and various taxes and fees.

Adding It Up

As I write this, the stock with the lowest price is NIC at sh11.00 per share.

Therefore, the minimum amount you can invest at today’s price is sh1123.10.

sh11.00 x 100 shares + 2.1% commission and fees = sh1123.10

On the other end of the spectrum, you’ll need at least sh3,063,000.00 to invest in British American Tobacco – Uganda, which currently trades for sh30,000.00.

sh30,000.00 x 100 shares + 2.1% commission and fees = sh3,063,000.00

A Word of Caution

Keep in mind that a low share price doesn’t necessarily mean a stock is a bargain. Nor does a high share price mean that a stock is overvalued.

A stock’s price must be weighed against a number of factors, including (but not limited to) the underlying company’s earnings, dividends, net assets, and potential for growth.

Where to Start?

Investing in stocks doesn’t offer a guaranteed return.

In fact, it can easily leave you with less money than you started with. And, if you’re new to investing, it can take time to familiarize yourself with different approaches to valuation and financial analysis that can improve your odds of netting a positive investment return.

So, just dip your toe in the water first. Invest only a small amount – an amount that you can easily afford to lose.

And invest first in a company that you know well, preferably one whose products or services you use regularly. Then, as your investment knowledge grows, you can invest more with increased confidence.

Your Turn

Do you have questions about investing on the Uganda Securities Exchange? Let’s hear them in the comments.

15 thoughts on “What Is the Minimum Amount You Can Invest on the Uganda Securities Exchange?”

    1. That depends. Sometimes you will see the value of your shares increase almost immediately (within days). Sometimes it will remain the same for months or even years. And many times the value of your shares will decrease. There are no guarantees when it comes to investing in shares.

      Here’s an article that helps explain things a bit more clearly:

      https://investinginafrica.net/what-is-a-share/

  1. can student like me buy share,these for my future purpose, and I yes when I buy share do I need to put some Money aside for anything that may arise

    1. Hi Patrick,

      Yes, a student like you can buy shares. It’s never too early to begin saving and investing. After you purchase your shares, you don’t need to keep any money aside. You will own the shares, and they are yours to keep until you decide to sell them.

      But keep in mind that there is no guarantee that the value of your shares will increase. It might actually drop if the company’s prospects look poor or uncertain. So I would advise that you only invest money that you don’t plan to need for the next 5-10 years. Holding the shares for a long time period gives you the best odds of reaping a positive return on your investment.

      Hope this helps and happy investing!

    1. Hi Kakande,

      Many Ugandan stocks pay shareholders a dividend once or twice per year. For example, Stanbic Bank Uganda paid its shareholders Shs1.76 for each share of the company that they owned last year.

      If the bank remains profitable, the bank will likely continue to pay a dividend to shareholders every year.

      If the bank’s profits grow, there’s a good chance that the amount of the dividend will grow, too.

      But note that the bank is not required to pay a dividend. They could decide to reduce the amount of the dividend or cancel it altogether. This is part of the risk that comes with investing in shares.

    1. Hi Johnt,

      You can simply email your broker, requesting that they sell your shares. They will then notify you when the sale is complete. After the shares have been sold, you can instruct them by email or phone where and how to deliver your funds.

  2. what’s the best company a student can invest in for a a successful return in 10 to 15 years period

  3. Hi Ryan
    Iam Zimbabwean living in South Africa and you have assisted in investing in Zim…Thank you sir.

    I would want to trade on the Ugandan Securities Exchange.
    Kindly provide infor on
    1.The most reputable stock brockerage firms
    2.Firms with a strong footing(high or low share prices) and the potential to grow grow in the next 5yrs

    1. Hi Godfrey,

      Good to hear of your interest in investing in Uganda. Crested Capital is one of the Uganda Securities Exchange’s most reputable brokers.

      I would suggest researching some of the large-cap stocks first (Stanbic Uganda, CiplaQCI, Umeme, and DFCU).

  4. Isnt it possible for companies in use listing deposite dividends to shareholders accounts without paperwork like the it is in kenya

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