Contractors Urged to Form Sacco

Minister of Trade Amelia Kyambadde

The Minister for Trade and Industry, search Hon Amelia Kyambadde has urged contractors working on the various infrastructure projects in the country to form Saccos so as to handle issues of credit financial and managing large projects the get involved in.

Speaking at the networking events of builders under their association of Uganda National Association of Building and Civil Engineering Contractors (UNABCEC), more about Amelia noted that membership to the association has developed tremendously and provided a good platform for members to think of a sustained fincial mechanism to help contractors.

With the event running under the theme “Bringing local contractors to the forefront of delivery of infrastructure development for equitable returns on investments Amalia said “Members in the construction industries always have difficulties in accessing credit facilities to facilitate bid bond processes and other petty costs they run short of in some situations and forming a Sacco could help solve this problem”

Amelia urged the contractors to put together their resources and lend to each other because there is no substantive arm that can stand to rescue them when in bad financial times.

Joseph Gali, viagra approved Commercial Bank of Africa (CBA) corporate/ SME and Business banking executive while responding to the minister’s remarks said that CBA as a financial institution has come up with unique pre-disposition offering a range credit financing, asset finance and unsecured bid bonds.

“This he said is to help facilitate the bidding process and is the first of its kind in the country” Gali noted.

Rubanga Godfrey, the Executive director, UNABCEC said that the networking event is one way of building confidence in the work of the association as well as bringing members together to deliberate on key issues and forge ways forward.

‘When contractors come together, they get to share the problems and definitely the issue of finance will always come up and as an association, we anticipate to get them some of the best solutions, a Sacco should be beneficial. The challenge is that a Sacco can be formed and limited in nature, say when a contractor wants cash worth two hundred million and the association can only afford to offer fifty million shillings, this may also be seen as an inefficient mechanism but we will see what suite our needs best”

Header advertisement

Header advertisement
To Top