Uganda's Capital Markets Authority (CMA) has licensed ICRA Credit Rating Agency, making it the first to operate under the country’s regulatory framework, New Vision reported.

ICRA, a subsidiary of Moody’s Investors Service, will issue credit ratings for local businesses, offering independent benchmarks for assessing creditworthiness in the market. 

"This is a significant development, as the presence of a licensed credit rating agency is expected to stimulate the growth of Uganda’s corporate debt market," CMA chief executive Josephine Okui Ossiya is quoted by New Vision as saying.

"By reducing information asymmetry between issuers of debt securities and investors, credit ratings will boost investor confidence and encourage broader participation in our capital markets," she added.

ICRA chief executive Sahil Bansal is quoted by New Vision as saying the agency’s ratings would boost investor confidence, help open access to capital markets for corporates and SMEs, and help develop the corporate bond market.

“This approval has come at the right time. With Foreign Direct Investment (FDI) into Uganda on the rise, the capital market is now poised to thrive as well,” he said.

ICRA's licensing comes amid broader regulatory reforms by the CMA aimed at developing Uganda's financial sector and aligning its market with international best practices.

The African Development Bank’s Country Focus Report 2025 on Uganda highlights the importance of mobilising local financial resources, such as pension funds and savings, to support long-term growth and reduce dependence on external funding.

“The review ensures our framework is abreast with current market innovations and aligned to international best practice,” CMA's Ossiya is quoted as saying.

In May, the CMA gazetted the Collective Investment Scheme (Licensing) Regulations 2025 to strengthen oversight of Uganda’s growing collective investment schemes (CIS). As of June, CIS assets had reached UGX 4.6 trillion ($1.29bn), reflecting rising investor participation.

The CMA has also released draft rules proposing a CIS (Compensation Fund), now under public consultation, that would offer an extra layer of protection for investors beyond custodial safeguards.

“Notably, CIS assets are held by custodians on behalf of investors, which makes investments extremely safe. The Compensation Fund is an additional safeguard for investors,” Ossiya said.