Small and Medium Entrepreneurs have asked government to offer them interest-free loans in order to improve the quality and quantity of their services.

They say that the quality of their products is still low for international markets and they can solve the problem if they get financial support in form of soft loans from government.

The Managing Director of a Ghee manufacturing company in Kampala Alozias Kataboganya says that the market for Ghee is readily available all over the world but they cannot fully take advantage of it because they lack enough credit to expand the level of ghee production.

Alozias adds that Ugandans are currently suffering with high prices of Ugandan products because demand has surpassed supply but this can change if government can offer soft loans the small manufacturers to increase output.

Lack of affordable credit has for long been identified as major bottlenecks to improved performance of small scale businesses because most commercial banks are reluctant to give loans to SMEs because of the risky nature and lack of records by most small and medium enterprises.

By Issa Baluku