Shumi Sonia, a 17-year-old senior 4 student at Mariam High School, is not your typical teenager with typical dreams. She envisions owning a house in the coming years, a goal she believes is within reach through her involvement with the Stress-Free Investment Club (SFIC).
“My name is Shumi Sonia, I think am the youngest member here with a big dream,” she said
This investment initiative is making waves by pooling funds from various sources to realize its vision of providing 500 affordable housing units across a 20-acre plot.
The SFIC is charting a unique path to help members like Shumi achieve their housing dreams. By combining funds from their security accounts in the UAP unit trust and Bank of Uganda’s treasury bonds, the club is steadily growing its financial power. Shumi, the youngest member of the club, exudes hope as she sees this effort as a pathway to a brighter future for her family.
The club’s 3rd Annual General Meeting, held at the prestigious Hotel Triangle on Saturday, provided insights into their progress. Ronald Sebunya, the incoming executive director and current head of investments, shared impressive figures.
The club is currently experiencing a commendable 11.26% daily return from its unit trust account (after reinvestment), and it anticipates a 13.6% interest upon the expiration of a 10-year treasury bond.
“The growth was 11.2% interest earnings from investments, the club is focused on building strategic partnerships with key players in the real estate industry. We have approached National Housing and Construction Corporation and we are still in discussion to meet the club’s objectives of decent low-cost housing,” he said.
Sebunya also emphasized the club’s commitment to strategic partnerships within the real estate sector. The club is in discussions with the National Housing and Construction Corporation to further its mission of creating affordable housing options.
As of June 2023, the club’s asset value stands at a robust sh641 million. With investments in Bank of Uganda security bonds and Unit Trust with UAP, the club is on track to surpass sh1.8 billion within the next five years. The club’s investments in UAP alone are worth over sh271 million, and the accrued interest from total deposits exceeds sh30 million.
The journey toward this ambitious goal is guided by sage advice. Real estate developer Hajji Yasin Bakaluba emphasizes the importance of setting well-defined and adaptable targets. He notes that constructing condominiums is achievable but requires strategic adjustments along the way.
“You must create structures and be ready to revise plans if you are planning to construct condominiums, It is doable but will have to change strategy if you want to hit the target,” he advised.
Investment Club Association of Uganda (ICAU) statistics reveal a thriving landscape of investment clubs in Uganda, numbering over 8,000. These clubs span diverse asset classes, including real estate, transportation, and agriculture, all with the shared goal of creating wealth for their members.
Stress-Free Investment Club emerged as a beacon of hope during the COVID-19 pandemic, uniting individuals from Uganda and the diaspora. What started with a few people confined to their homes has blossomed into a community of nearly 300 members.
Legally anchored in the Collective Investment Schemes (Real Estate Investment Trusts) Regulations, 2017, issued by the Capital Markets Authority (CMA), this initiative leverages the power of collective investment to drive real estate development.
This framework allows property owners to raise capital by using existing properties or embarking on new developments collectively.
Addressing the pressing housing crisis, Uganda is grappling with an annual housing deficit of 300,000 units, a figure that highlights the urgency of initiatives like the Stress-Free Investment Club. As urban households are projected to increase to 3.8 million by 2025, the government is focusing on strategic interventions to address the housing gap, aligned with its long-term development vision.
Despite challenges, Shumi Sonia and her fellow club members embody the spirit of proactive change, demonstrating that collective efforts can spark transformative results. Their story illustrates the potential for investment clubs to drive positive change and provide solutions to pressing societal issues.
Pictorial
