Experts have deliberated on the best methods for manufacturers to access development finance and capital at lower interest rates.
Speaking at the Uganda Manufacturers Financial Symposium, Aga Sekalala, Vice Chairman of the UMA Board, emphasized that access to affordable long-term finance is crucial for driving the competitiveness of manufacturers. He noted that such financing enables manufacturers to sustain daily operations and scale their businesses effectively.
Sekalala highlighted the necessity for concerted efforts by the government, policymakers, and the private sector to address financing challenges in Uganda, stressing the importance of deliberate and intentional decisions by regulators and policymakers to foster industrial growth.
As part of UMA’s commitment, Sekalala mentioned engaging with financial institutions to provide financial literacy programs and enhance manufacturers’ readiness to access available financing.
He underscored the significance of establishing development institutions and fostering an equity culture to support high-value projects with long gestation periods.
Francis Mwesigye, Chief Economist and Director for Economic Research and Knowledge Management at Uganda Development Bank (UDB), highlighted the low share of development financing in Uganda’s GDP, emphasizing the need to raise the credit to GDP ratio to support economic development adequately.
Dr. Patrick Birungi, Executive Director of Uganda Development Cooperation, emphasized UDC’s focus on agro-manufacturing investment, aligning with Uganda’s agro-based economy.
Alex Wangya, Deputy Director of the Agricultural Credit Facility (ACF) at the Bank of Uganda, discussed efforts to provide cheap loans along the agricultural value chain. He mentioned plans to increase project funding and provide working capital for manufacturers through accessible financing options.
Ezra Muhumuza, Executive Director of UMA, highlighted challenges in disseminating low-interest packages to manufacturers due to commercial banks’ preference for their own packages. He emphasized the need for alternative dissemination approaches.
Francis Ogwang, Country Manager of the East African Development Bank, advocated for the establishment of an Industrial Bank to provide development finance and patient capital for manufacturers. He outlined the proposed Industrial Bank’s role in supporting small, medium, and large-scale industries for expansion, diversification, rehabilitation, and modernization purposes.
