5. Financial Transparency – Weak
5.1 Market Stability
5.2 Independent Asset Valuers
5.3 Data Standards
In-Country Assessment Information

5. Financial Transparency – Weak

Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services


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5.1 Market Stability


Core Question: Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur? No – Weak – Capital markets are relatively small and underdeveloped, though more private companies are being listed on the stock exchange.


Financial Reporting

5.1.1   What is the strength of the country’s auditing and reporting standards?  Weak –  105th out of  144; Score  4.1 out of 7

Market Sophistication

5.1.2   Does the financial sector provide a wide variety of services to businesses?  Weak –  73rd out of  144; Score  4.5 out of 7

Source: The Global Competitiveness Report  2012-2013, World Economic Forum


Insolvency Process

Strong – Ranking –  69th out of  185

5.1.3   What is the average time to complete bankruptcy proceedings? 2.2 years

5.1.4   What is the cost of bankruptcy proceedings as a percentage of the estate? 30%

5.1.5   What is the recovery rate of bankruptcy proceedings?   38.9 cents on the dollar

Source: Doing Business 2013–  Resolving Insolvency




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5.2 Independent Asset Valuers


Core Question: Do trained, independent and ethical asset valuers exist for all types of assets? No – Weak, the profession and standards are evolving with four companies focused primarily on valuation.


Survey Questions


SQ 21  How easy is it to find a valuer who implements International Valuation Standards? Weak – there are no standards of practice mentioned in the law. Discussions are ongoing regarding adopting International Standards.

Civil Society Resource: Institution of Surveyors of Uganda (ISU)



SQ 22  What is the level of training of valuers? Weak – Officers of the ISU say there is a need for advanced level courses.

Civil Society Resource: International Real Property Foundation



SQ 23  Are opinions offered by valuers free of influence from parties to the transaction? Weak – ISU has a code of ethics but it is not strictly enforced.

Civil Society Resource: International Valuation Standards Council




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5.3 Data Standards


Core Question: Is accurate property information available electronically in formats that are consistent with international standards? No – Very Weak, data exchange is in the very early stages.



Survey Questions

Sales & Operating Data

SQ 24  A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist? No – Weak, there is no MLS or willingness to share information. Internet sites are developing primarily for rental properties.

Civil Society Resource: International Consortium of Real Estate Associations

SQ 25  Do resources exist for obtaining building income and expense estimates? No – Very Weak  

Civil Society Resource: Institute of Real Estate Management


Interchange Formats

SQ 26  Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)? No – Very Weak, much of the country is unmapped and technology is limited by in rural areas by poor power supply.
Civil Society Resource: Open Standards Consortium for Real Estate International

Technical Standards

SQ 27  Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards? No – Very Weak, lack of building codes leads to high maintenance costs. Building Code Law is before parliament.

Source: Ministry of Works and Transport






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In-Country Assessment Information (as of August 2008)

Market Stability

FQ 9. How stable has the property market been over the last several years?

Despite the global economic slowdown, office development in Kampala is continuing, albeit at a slower pace, with approximately 35,000 sq m expected to come to the market by October 2010. The entry of new players in the financial services and telecoms sectors had seen a steady increase in demand. However, the financial slowdown has seen the number of commercial sales transactions fall significantly. Banks are adopting more stringent lending criteria and buyers are holding out for a drop in prices.

Kampala’s residential market has seen rapid growth with the construction of various housing estates and apartment blocks/townhouses in both the older residential areas and the new suburbs being opened up. Despite this increase in supply, there still remains a shortage of affordable, well located, good quality houses.

Source: Knight Frank Uganda

Valuation Profession

FQ 10.  How many independent valuers exist in the market?

There are 56 members of the Institution of Surveyors of Uganda (ISU) and 40 apprentices.


FQ 11. How many companies exist and what is the average size of valuation companies?

There are approximately 20 companies that have valuation as part of their operations. Four of those firms are primarily valuation companies with 2-3 valuers per company. Bageine and Knight Frank have the leading credentials and are considered the more sophisticated.


FQ 12. What are the valuation standards and do they conform to international and regional standards?

There are no local standards, but work carried out by the large international accounting and real estate firms would conform to standards.



FQ 13.  What valuation methods and techniques are used in the market?

Full members and Fellows of the ISU follow the basics of international practice. Work for international clients would likely be ordered and reviewed by the large international firms.


FQ 14.  Are there valuer associations in the market? What number and percentage of practitioners belong?

Yes, virtually all valuers belong to the ISU.


FQ 15.  What training programs are available to upgrade the quality of valuers?

No regular training programs are available.


FQ 16.  Are peer review mechanisms in place to assist in enforcing ethical behavior? No


FQ 17.  What is the quality of valuation reports? Unknown


Data Availability

FQ 18. What is the status of proprietary data bases that include property information?

Most firms maintain their own databases


FQ 19.What is the status of existing data sharing mechanisms for properties that are for sale?


None, although Internet listing sites have started to develop.

FQ 20.  Do valuers have an established data sharing mechanisms?


No, although efforts are being made to develop a database.


Source: IRPF Assessments August 2008





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