Best Safe Investment Options in Uganda (2025)
Looking for where to put your money in 2025 without losing sleep? Whether you’re saving for school fees, a future project, or just want your money to grow securely, here are Uganda’s top safe investment choices explained simply.
What Makes an Investment “Safe”?
A safe investment is one where the risk of losing your money is very low. It is usually backed by the government or a licensed financial institution. Safe investments may not give you the highest returns, but they protect your money while growing it slowly over time.
There is no such thing as zero risk. But options like government bonds, regulated unit trusts, and fixed deposits come close.
Top Safe Investment Options for Ugandans in 2025
1. Treasury Bonds
Issued by the Bank of Uganda. Pays interest every 6 months. Long-term. Backed by the government.
2. Fixed Deposits
Offered by commercial banks. You lock money for 3, 6, or 12 months. Interest is paid at the end.
3. Money Market Funds
These are pooled funds managed by licensed fund managers. Short-term, low risk. You can withdraw anytime with a day’s notice.
4. Unit Trusts – Fixed Income Funds
You invest in a fund that holds treasury bonds and corporate bonds. Diversified and professionally managed.
5. SACCO Shares (Only Regulated Ones)
You buy shares in a savings and credit cooperative. Lower returns but relatively safe if well-managed and licensed.
Real-World Examples of Each Option
If you invest UGX 1,000,000 in each of these for 1 year, here is what you can expect:
1. Treasury Bond
With UGX 1,000,000 in a 2-year treasury bond paying 15%, you earn UGX 150,000 per year, split into two payments of UGX 75,000 every 6 months. At the end of the term, you get back your full UGX 1,000,000. Ideal for long-term planning.
2. Fixed Deposit
At many Ugandan banks, a 1-year fixed deposit may offer 9–10% interest. So, UGX 1,000,000 locked for 12 months at 9.5% earns you UGX 95,000 — paid once at maturity. You can’t access the money until the term ends, and early withdrawal usually means reduced interest.
3. Money Market Fund
Investing UGX 1,000,000 in a money market fund could earn you around UGX 100,000–110,000 depending on the rate and fund manager. You can withdraw within 1 business day. Great for those who want access to their money while still earning.
4. Unit Trust (Fixed Income Fund)
A fixed income unit trust pools your money with others and invests in treasury and corporate bonds. With UGX 1,000,000, expect to earn about UGX 110,000–130,000 in a year. Some fluctuation in value may occur depending on market movements. Withdrawals usually take 2–5 business days.
5. SACCO Shares
Buying UGX 1,000,000 worth of shares in a well-managed, regulated SACCO may earn you UGX 60,000–90,000 annually through dividends. However, returns depend on the SACCO’s performance and dividend policy. You typically receive payments once per year.
Comparing the Options: Returns, Access, and Safety
| Investment Option | Approx. Annual Return | Access to Funds | Backed By |
|---|---|---|---|
| Treasury Bond | 14–17% | After maturity | Government of Uganda |
| Fixed Deposit | 8–10% | Locked in term | Commercial Bank |
| Money Market Fund | 10–12% | Withdraw anytime | Licensed Fund Manager |
| Unit Trust – Fixed Income | 11–13% | 2–5 days | CMA-Regulated Manager |
| SACCO Shares | 6–9% | Annual dividends | Regulated SACCO |
Where to Start if You’re New
If you’re new to investing and want a safe way to start, unit trusts, treasury bonds and fixed income products on Level Africa are great entry points.
How to start:
- Create a free Level Africa account
- Complete KYC by uploading your ID
- Fund your account with Mobile Money or bank transfer
- Browse treasury bonds and fixed income products
- Start investing with as little as UGX 100,000
Frequently Asked Questions
Is my money guaranteed?
If you invest in treasury bonds or a licensed unit trust, your principal is highly protected. There is always some risk, but it’s low.
Can I lose money?
Not likely with government or regulated financial products. But always read the terms before investing.
What if I want to invest UGX 100,000 only?
That’s enough to get started with unit trusts, treasury bonds or fixed income products via Level Africa.
Final Thoughts and Next Steps
Safe investing is not about chasing the highest return — it’s about protecting what you have and growing it steadily.
Start small. Stay consistent. Use licensed platforms like Level Africa.