Uganda, May 6 -- Equity investors, particularly those involved in trading treasury bills and bonds have seen their returns grow, as government continues to borrow domestically, amid a tight monetary policy.

In the three months to March, Bank of Uganda mobilised Shs4 trillion through government papers or treasury bills and bonds, which was 10.3 percent higher than the Shs3.7 trillion mobilised in the 2023 fourth quarter.

Thus, a report by Capital Market Authority (CMA) for the three months to March indicates that the increase in domestic borrowing is responsible for a surge in debt issuance, which included a private placement, in which government raised Shs1.2 trillion.

A private placement is when government directly sells bonds to a se...