ASEA - September, UGANDA SECURITIES EXCHANGE Ltd Country Report - UGANDA

ASEA - September, Uganda – Geography  Landlocked East African country. Home to the source of the Nile  Surface area: 236,040 sq. km Land199,710 sq. km (84.6%) Land199,710 sq. km (84.6%) Water 36,330 sq. km (15.4%) - including Lake Victoria Water 36,330 sq. km (15.4%) - including Lake Victoria  Natural resources: Arable land; climate; Copper; cobalt; limestone; hydro electricity; salt; gold; wildlife, vegetation and terrain; tropical forests Arable land; climate; Copper; cobalt; limestone; hydro electricity; salt; gold; wildlife, vegetation and terrain; tropical forests  Terrain Mostly plateau with a rim of mountains – Rwenzori, Elgon etc and rift valley escarpment to the West. Mostly plateau with a rim of mountains – Rwenzori, Elgon etc and rift valley escarpment to the West.  Geographical Summary – landlocked, fertile, well watered tropical country with many rivers, lakes.

ASEA - September, Uganda – People  Population – 27.2 million (2005 estimates)  Population growth rate – 3.31% (2005 estimates)  Life expectancy – 46 years (2004 estimates)  Over 23 recognized ethnic groups  Official language – English

ASEA - September, Economy at a glance – Inflation Headline inflation  High of 12.6% in April due to sharp food price increases as a result of unfavourable weather  Six months upward trend broken in May with rates falling to 10% as at end June. Underlying inflation  Fluctuated within the 4-5% range before taken on a steady upward trend after April  June inflation recorded at 6.5%

ASEA - September, Economy at a glance – Interest rates  Rates maintained relative stability throughout the period under review  Rates as at June 30 th, % - 91 day 8.98% - 91 day 10.71% day 10.71% day 13.14% day 13.14% day  Government now executing its new policy to reduce the volume of T-Bill issuances

ASEA - September, Economy at a glance – Foreign Exchange rate  Exchange rate hit a low of Ushs 1,711 per dollar between February and March, 2005  Sharp increase to Ushs 1,778 in the IFEM in the month April. June IFEM levels at Ushs 1,738.

ASEA - September, Stock Market Indicators – USE ALSI  Base value (December 2002) – 100  August 2004 end value –  All time high (July 12 th, 2005)  July 2005 end value

ASEA - September, Market Statistics – MIMS NEW DEVELOPMENTS  May activity was the highest ever recorded in the History of USE  Volumes for the quarter covering April – June 2005 reported a 470% from the preceding quarter. MONTHLY STATISTICS – February to July FebruaryMarchAprilMayJune July Turnover (Ushs) 13,105,860449,921,77028,462,9702,215,056,780451,830,130383,897,230 Shares Traded 33,7401,522,411752,544,582,0751,162,0471,063,370 Deals

ASEA - September, Market Statistics - FISMS NEW DEVELOPMENTS  Two new 3 year bonds listed in April and July.  2 year bond listed in June  Total amount issued to date stands at Ushs 535 bn Issue NoIssue Size (Ushs) Issue DateCurrent Coupon Total turnover for the year Primary Dealer Indicative rates (%) Best bidBest Ask FXD 1/2004/280bn14/01/200410% FXD 2/2004/380bn25/02/ % FXD 3/2004/540bn24/03/ %200,000, FXD 4/2004/1015bn19/05/ % FXD 5/2004/260bn30/06/200410%300,000, FXD 6/2004/390bn07/10/ FXD 1/2005/2100bn27/01/200510%300,000, FXD 2/2005/325bn21/04/ %1,403,000, FXD 3/2005/220bn16/06/200510% FXD 4/2005/325 bn28/07/ % GOVERNMENT BOND SCHEDULE – April to July 2005

ASEA - September, Market Statistics – Yield Curve Tenor Rate 91 day day day year year year year13.48

ASEA - September, New developments – Sovereign Rating  Rating received in March, 2005 from Fitch Ratings  Long term Rating - B  Short Term Rating - B  Local Currency long term rating - B  Country Ceiling- B

ASEA - September, Public Education and awareness – February to July,2005 Implementation of the communication strategy –   Promotional materials – final consignment, June   Jinja Open day Event (June,2005)   Secondary Schools education Programme – School visits in Eastern Uganda;   Tertiary Institutes’ Education Programme (TIEP) – University visits to the Exchange  (May/June, 2005)  Eastern Regional Trade Fair (May/June, 2005) Facts behind the Figures conferences - BOBU, UCL, DFCU Corporate Social Responsibility Initiative launched – June 2005 Publication of 2 quarterly bulletin

ASEA - September, Upcoming initiatives General thrust for the newly started financial year – “Business development- development of revenue centers”  Completion of the CDS project  New listings – Equity, government and corporate debt  Proposed cross listings  Public education and awareness  Commissioning of a Financial Training Center at USE  Bourse Game