By David Mwanje
Absa Bank Uganda has been named the Best Performing Primary Dealer Market Maker for government securities by the Bank of Uganda, recognising the bank’s growing role in Uganda’s domestic debt market. The award, covering performance from October 2024 to September 2025, was presented during a Uganda Bankers Association meeting held at the central bank’s headquarters.
The recognition reflects Absa’s strong participation in Treasury bill and bond auctions, as well as its activity in the secondary market. Primary dealers play a key role in government borrowing by bidding for newly issued securities and providing liquidity after issuance. Absa stood out through consistent bidding volumes, competitive pricing and steady market-making activity.
According to the Bank of Uganda, the assessment focused on auction performance, liquidity provision and secondary market participation. Absa posted high subscription success in auctions, supporting uninterrupted government fundraising. In the secondary market, the bank provided reliable two-way price quotations, supporting price discovery and investor confidence. Its active interbank trading also helped ease capital flows within the banking system.
Market analyst Kakande Alex said such performance is important as Uganda’s economy continues to recover from recent shocks. Stable trading in government securities improves market liquidity and strengthens the transmission of monetary policy. By supporting liquidity, primary dealers help reduce interest rate volatility and create a more predictable investment environment.
Uganda’s primary dealer framework, strengthened by reforms introduced in 2020, now comprises eight commercial banks selected by the Bank of Uganda. These institutions serve as intermediaries in the issuance and trading of government securities. To qualify, banks must meet requirements including adequate capitalisation, regulatory compliance and proven trading capacity.
The current primary dealers are Absa Bank Uganda, Stanbic Bank Uganda, Standard Chartered Bank Uganda, Centenary Bank, DFCU Bank, Equity Bank Uganda, Citibank Uganda and Housing Finance Bank. Their role is to support demand at auctions while maintaining continuous pricing in the secondary market. The framework has contributed to the expansion of Uganda’s domestic securities market over the past five years.
For Absa Bank Uganda, the award marks an important milestone. The recognition is expected to strengthen the bank’s standing among institutional investors, including pension funds and insurance companies seeking reliable trading partners. Industry observers note that previous recipients of the award have often seen increased investor engagement and expanded advisory roles.
A deeper and more liquid securities market benefits the wider economy. More efficient government borrowing lowers financing risks and can help contain interest costs, creating fiscal space for public investment in infrastructure, health and education. A stable debt market also supports more predictable lending conditions across the banking sector.
Retail investors also benefit from improved liquidity. More active secondary markets make it easier for individuals to buy and sell government securities, widening participation in investment opportunities. Financial experts say continued improvements in market structure are key to long-term economic resilience.
In a statement, the Bank of Uganda said close collaboration between regulators and market participants remains essential, noting that strong primary dealers play a central role in strengthening the financial system.
