SAR Digital Asset Exchange and SAR Precious Metals Exchange, two Chinese companies that are directly owned by C.C.M Global Huitong Asset Management Group, have officially been launched in Uganda.
The two companies are incorporated under the laws of Uganda and offer global commodities and financial derivatives trading services. These are more like stock exchanges. Kirunda Kivejinja, the second deputy prime minister and minister for East African Community Affairs, said data from the Precious Metals Institute indicates that the largest gold reserves are in Africa.
“We are also blessed with several minerals, oil and other natural resources. These riches are underground. We walk on them and yet we cry poverty. We are now training our local resources and streamlining the legal framework of dealing with investors like these so that we as a country benefit,” Kivejinja said. He was speaking at the launch of the two companies at Sheraton Kampala hotel. State Minister for Microfinance Haruna Kasolo was also in attendance.
Kivejinja added that licensed companies like SAR will help raise the profile of the country’s precious minerals. Kasolo said these companies will contribute tremendously to the economy of Uganda.
Li Haixiong, the vice president of C.C.M, SAR’s mother company, said that SAR Digital Asset Exchange will use blockchain technology to issue digital tokens. Their technology converts traditional gold transactions into standard digital assets.
“Instead of physical gold transactions, it can be used as global conversion payment digital tokens and SAR Precious Metals Exchange will deal in precious metals’ trading, including wholesale, retail and distribution,” Haixiong added.
Haixiong said they have a mineral dealers’ license in Uganda and on top of trading Ugandan gold and other minerals, the country is strategically located as a hub of trade within the region and they will be able to access minerals from neighboring countries.
Haixiong said SAR has a solid financial muscle and they will invest heavily in Uganda.