Uganda has been ranked as the most stable financial market in East Africa, overtaking regional peers Kenya and Tanzania, according to a new assessment report. The ranking places Uganda fourth overall on the African continent, behind only South Africa and two other leading markets, underscoring growing confidence in the country’s financial system.
The report highlights macroeconomic stability, prudent monetary policy, and improved regulatory oversight as key factors behind Uganda’s strong performance. Analysts point to the Bank of Uganda’s tight control of inflation, a relatively stable currency, and strengthened supervision of banks and non-bank financial institutions as pillars supporting investor confidence.
In recent years, Uganda’s financial sector has benefited from reforms aimed at deepening capital markets, improving risk management, and expanding access to credit. While the country’s capital market remains smaller than Kenya’s, its stability has increasingly been viewed as an advantage at a time when volatility and fiscal pressures are testing many African economies.
The ranking places Uganda ahead of Kenya and Tanzania, both of which have faced currency pressures, rising debt servicing costs, and tighter liquidity conditions. Kenya, East Africa’s largest economy, has grappled with high public debt and exchange rate volatility, while Tanzania has faced investor caution amid policy uncertainty and external financing constraints.
Financial analysts say Uganda’s position reflects consistency rather than size. “Uganda may not have the deepest markets in the region, but it has demonstrated discipline in macroeconomic management, which markets value highly in the current global environment,” one regional economist said.
At the continental level, South Africa continues to dominate Africa’s financial market rankings due to its deep capital markets, sophisticated banking sector, and strong regulatory institutions. Uganda’s rise into the top tier, however, signals a shift in East Africa’s financial landscape, where stability is increasingly prized over rapid but fragile growth.
Looking ahead, experts caution that sustaining the ranking will depend on Uganda’s ability to manage public debt, maintain inflation control, and continue reforms that attract long-term investment. If these conditions hold, Uganda is likely to strengthen its reputation as a safe and reliable financial hub in East Africa.
