Local investors in Uganda have been asked to embrace private equity financing and venture capital as alternative to stimulate the slowing Uganda’s economy. The advise come at the time when Uganda’s economy is struggling to recover from election fever.
According to the executive director Uganda Investment Authority Dr Frank Ssebowa, many local investors are running to banks to acquire loans to jump-start their business at a very high interest rate, which has contributed to high rate of none performing loans and slow growth for small business enterprises in Uganda. He said that it’s time for Ugandans to consider alternative funding away from risky loans, and establishing partnerships through Private equity. Ssebowa was speaking ahead of the Annual Uganda investment week slated for 23rd-24th June at Serena hotel.
Meanwhile the chairman Private sector foundation Patrick asked Ugandans to forget election fever and concentrate to redeeming the country’s economy which is seemingly slowing down. In the pre-election period, many investments were put on halt in the anticipation of post-election violence, hence impacting negatively on the economic growth of this country in the short run. Bitature said that business people in Uganda need to wake up and revitalize their business linkage or they risk losing out. He said that many businesses in Uganda are shrinking especially manufacturing industries and service sector which calls for key actors to wake up and take swift measures before losing it all.
