Hon. Anite Evelyne, dosage Minister of State for Finance, buy Privatization and Investment, here has advised Ugandan entrepreneurs to be more transparent and trustworthy if they want to access investment funds available in the local capital markets.
Anite was on Tuesday addressing a group of entrepreneurs and investors that converged at Serena conference center in Kampala for the private equity and venture capital conference organized by the Uganda Investment Authority (UIA) as part of the 3rd investment week.
Anite said Ugandans have acquired a bad name for being untrustworthy among local and international investors hence the inability to get equity funds to develop their businesses.
“We are trying hard to get investors for the private sector but this is proving to be hard because our morality as Ugandans is questionable due to high levels of corruption on different levels of development,” said Anite.
“Investors are not confident that if they invest their money, the entrepreneur will equally reveal the activities, earnings and the interests the business is making which is a requirement for capital markets,” emphasized the Minister.
She said the government has availed funds in different development banks and institutions such as the Uganda Development Bank where it has put over Shs 50 bn for private sector development.
“We have also put a lot of money in the microfinance centre with the current being the Islamic fund. However, most of this money is never recovered because businesses are too informal and not transparent hence they fail to grow and make profits.”
Jolly Kaguhangire, the Executive Director UIA while addressing the same conference said the private sector has not fully utilized the capital market because they lack information and knowledge on what the requirements and the procedures are for one to access these funds.
“The investment sector has over Shs 9 trillion but only 2 percent of this money is going to the private sector. The Uganda regulatory investment authority allows up to 15 percent of the investment funds to be invested in private sector but this is not possible because the private sector has no capacity to fully consume and grow these funds,” said Kaguhangire.
She added; ”This is why we organized this conference so that the private entrepreneurs can meet and interact with the equity investors so that they can present their ideas and also learn about the requirements for acquiring those investments.”
The conference which was held under the theme; ‘converting domestic institutional investors into private equity’, was intended to shed light on the challenges facing the private sector in terms of access to private finances.
The conference is one of the different functions intended for the investment week which will take place throughout this week.