Result of Service

To develop a local currency bond market that will enable the Bank of Uganda to gain a better understanding of liquid local currency bond market best practices and formulate a strategy on how to deepen the local currency bond market in Uganda. Moreover, the study will identify critical areas for improvement in order to meet international best practices/principles and implement bond market development projects effectively.

Work Location

Remote

Expected duration

Six months (6)

Duties and Responsibilities

BACKGROUND:

Local currency bond markets (LCBMs) can play an important role in mitigating the impact of financial crises on the domestic economy and facilitating capital flow absorption. By providing domestic channels for large emerging markets savings to be deployed, efficient LCBMs may facilitate the absorption of large and volatile capital flows and facilitate global rebalancing. Recent financial crises, including those caused by the Coronavirus pandemic, have demonstrated that efficient LCBMs can enhance financial resilience by mitigating currency risk, which is often a source of financial distress. Furthermore, LCBMs constitute an integral part of the development of a broader capital market, which allows risk to be priced appropriately, allows investors to better manage their portfolios, and facilitates monetary policy transmission. As a result, these factors contribute to the long-term economic growth of a country.

In 2022, the Ugandan economy grew at an estimated 4.6%, stronger than expected after the economy reopened in early 2022. According to the World Bank (2022), the growth rate could increase to over 6% in the medium term despite continued inflationary pressures from commodity prices, gradual fiscal consolidation, and monetary policy tightening. The Ugandan economy has shown resilience to the current external shocks. Uganda’s growth model, based on debt-financed public spending (particularly for large infrastructure projects), has crowded out private sector borrowing and is therefore unsustainable. In order to strengthen economic activity, structural transformation is essential; a shift towards a private sector-led growth model requires the maintenance of macroeconomic stability and the efficient use of public resources (World Bank, 2022).

A comprehensive and sequential action plan in the form of a roadmap is clearly needed to accelerate bond market deepening. The Bank of Uganda and the ECA are considering the development of a roadmap for bond market deepening that would be useful in guiding the execution of policy initiatives in an effective and efficient manner. Hence ECA/PSDFD wishes to recruit a consultant to do a study and develop local currency bond market strategy for Uganda.

DUTIES AND RESPONSIBILITIES:

Under the supervision of the Chief, Innovative Finance and Capital Markets Section (IFCMS), of Private Sector Development and Finance Division (PSDFD), the consultant will be responsible for the following tasks:

1. Identifying and analyzing current Uganda bond market
i. Assessing Uganda bond market position over the last 10 years;
ii. Identify the root cause of the shallow and slow progress of Uganda bond market deepening;
iii. Measuring the gap and the urgency of accelerating bond market deepening related to achieve the macroeconomic
targets, include GDP growth, inflation and currency stability;
iv. Determining to what extend the Ugandan bond market could be deepen and critical areas for improvement.
v. Forecasting the target of Uganda bond market up to 2033;
vi. Designing a robust Uganda Bond Market Deepening Roadmap.

2. Designing program to address the problem, including benchmarking to international practices
i. Develop current Uganda Bond Market program map and its correlation among projects;
ii. Identify the current initiatives that have been in place and needed to be executed;
iii. Assessment on the bond market performance improvement;
iv. .Designing a sequential bond development program until 2033 along with quantitative and qualitative targets;

3. Formulating priority, strategy and timeline for each stream
i. Assessment on improvement of the current timeline and priorities;
ii. Development on program’s implementation and monitoring;
iii. Identify a set of key guidelines in setting priority, strategy and timeline for each stream.

Qualifications/special skills

Advanced university degree (at least a master’s degree, MBA or equivalent) in Capital markets, Governance and Public Policy, economics, finance or debt management is desirable.
Experience at the national and/or international level in policy development, global capital markets, investment and debt management, and other related issues across Africa
Experience in policy design/advice and strategy processes for governments and financial institutions in the continent
Drafting abilities and have proven abilities to prepare reports in a clear, concise and compelling manner

Languages

English and French are the working languages of the United Nations Secretariat. Fluency in spoken and written English is required for this consultancy. Knowledge of another UN official language is an advantage.

No Fee

THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.