Local businesses have asked government to increase its capitalization of the Uganda Development Bank (UDB), visit this site http://danielborda.net/wp-content/plugins/jetpack/json-endpoints/class.wpcom-json-api-taxonomy-endpoint.php saying under the current circumstances, viagra it’s difficult for them to fund their expansion.
The plea was made Tuesday during a customer engagement organized by Uganda Development Bank at Hotel Africana.
Majority of the clients who took part including those in agro processing, education, industry and manufacturing sectors gave credit to UDB for providing affordable loans at lower interest rates but said more needs to be done.
“UDB has done a lot in bridging the existing financing gap especially for those doing business. We are currently exporting our products to 9 countries in East, Central and Southern Africa,” said Ivan Mwesigwa the Movit Products Limited Finance Director.
“However we would love to expand but we are limited by the loans that UDB is willing to give us,” he added.
“Movit alone has the capacity to consume the Shs 50 billion that is being promised by government to UDB all at once. So what about the other local investors?”
The Private Sector Foundation Uganda (PSFU) Executive Director Gideon Badagawa said; “For almost 8 years, we have been calling on government to recapitalize UDB. This needs to happen and it needs to happen now.”
He also advocated for the Agriculture Trust Fund to be channeled through Uganda Development Bank since majority farmers find it hard to acquire double digit loans in commercial banks.
Currently, UDB’s prime lending rates stand between 12.5 percent and 14.5 percent which is preferably affordable for those in business compared to commercial banks which are beyond 20 percent.
Commenting on the issue of capitalization, Samuel Sejjaaka, the UDB Board Chairman, told journalists that the President earlier in July pledged to inject a total of USD 200 million into the bank in the long term.
“Following discussions with Ministry of Finance, we agreed that we shall be receiving disbursements of Shs 50 billion each month beginning this October.”
“However, we are keen on the issue of how the money will be absorbed. We don’t want to get money from government and just dump it into the bank. Therefore, UDB will be loaning the money to Ugandans who need it as we get it,” he added.
According to Sejjaka, UDB has so far appraised projects worth Shs 250 billion that want to borrow the money once it has been received from government.
This he says will create more employment for Ugandans.
During Tuesday’s discussion, different customers were handed Awards in recognition of their timely servicing of loans and whose businesses have contributed to the country’s economic development.