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During a webinar held on June 15 focusing on investment opportunities and home ownership for Ugandan expatriates, Hellen Kanobere Musubika, expatriate and high net worth manager at Uganda Housing Finance Bank, stressed that the economy continues to see impressive growth, guaranteeing returns for investors.
She noted that according to the National Bank of Uganda’s 2022/23 Remittances Report, an increasing number of Ugandans are seeking better opportunities abroad, with individuals remitting $1,250.3, necessitating the need for banking solutions that cater to the needs and lifestyle of this group.
The government’s continued push to borrow from the public has provided the diaspora community with an opportunity to invest in Treasury Bills and Bonds. These are risk-free, short-term financial investment instruments that the government, through the Bank of Uganda, periodically issues to the public. The investment tenor of Treasury Bills is short-term and currently stands at 8% for 3 months (91 days), 9.5% for 6 months (182 days) and 11% for 1 year (364 days).
This treasury bond is a long-term bond with an investment period of three years. The current yield is 14%. The investment period is three years and the current yield is 13.5%. The investment period is 10 years and the current yield is 14.375%. The investment period is 20 years and the current yield is 15%.
For Ugandans living and working abroad with limited local presence, government securities are risk-free and investors will receive guaranteed returns and certain cash flows, in addition to loan collateral, with minimal involvement.
According to the financial report of the Bank of Uganda, the inflation rate is currently 3.6%, which is within the target range of 5%. For Ugandans abroad, a stable inflation rate will undoubtedly increase investors’ enthusiasm for investment, and interest rates are more predictable, which is very suitable for remitting money back home for investment. Housing Finance Bank has partnered with Western Union, Swift, MoneyGram and Terra Payments to simplify the process for Ugandans abroad to remit money back home safely.
Musubika said the growing youth population, which now stands at over 45.5 million people according to the UBOS Digital Census, with a growth rate of over 30%, indicates a severe housing shortage, especially in urban centres. This gap between housing supply and demand presents an opportunity for the Ugandan diaspora to invest in the housing value chain.
The Housing Finance Bank has also tailored mortgage financing models to facilitate investment by the diaspora community. These include developer financing to stimulate the development of affordable housing, off-taker financing to enable Ugandans interested in purchasing homes, building homes for owner-occupation and developing rental housing to generate cash flow.
Through its partnership with AVARTS Housing, the bank also offers property management services, supporting real estate expats with rent collection and tenant search, property maintenance and improvements, bill payments, bookkeeping and financial reporting.
Sarah Muloki (not her real name), who works in Germany, asked the bank if it could help her sell her house in Uganda and invest the money in other projects. Musubika responded that the Housing Finance Bank had mortgage financing solutions that buyers could use to simplify the process of selling her house.
Housing Finance Bank offers a unique Diaspora Easy Account with internet banking facility, enabling people to access and operate domestic accounts digitally through an internet banking platform and personalised support from a dedicated relationship diaspora team.
“To encourage you to save, we strongly recommend you to use this account which has no monthly fees. You can also use your Mastercard to pay for goods online and purchase at supermarkets. All these point-of-sale transactions accept our Mastercard. You can also use your Mastercard to withdraw cash internationally,” she said.
Musubika noted that HFB offers a variety of investment options that customers can use to passively grow their money. These options include savings accounts, fixed deposit accounts and children’s Toto savings accounts to save for their children’s college education and other needs.
Housing Finance Bank is a local bank whose mission is to enable home ownership and financial independence for all Ugandans and the diaspora. Housing Finance Bank is one of the 10 most profitable banks in Uganda with assets of over Sh1.3 trillion and customer deposits of Sh817 billion.
Since its inception in 1967, Housing Finance Bank has 18 branches and over 900 agencies across the country.
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