An assessment presented by UDB Executive Director, Patricia Ojangole shows that on average, 80 per cent of private sector businesses need financial help like physical cash, debt rescheduling or direct loans to be able to overcome the effects of the pandemic.
Uganda’s banking sector is appealing to the global lending
community to come to the rescue of Uganda’s economy where the local lenders are
finding it hard to reach in the quest to revive the economy.
The commercial banks admit that some sectors of the economy
are too risky to lend to, especially the micro, small and medium enterprises,
which unfortunately contribute the most to the economy. The Private Sector has always accused the banks of avoiding
lending to them and instead preferring to invest in government assets which are
deemed less risky.
Recently, the Uganda Bankers Association Chairman Mathias
Katamba said that actually, it’s the private sector with stopped borrowing
especially with the onset of the COVID-19, adding that this was a prudent move
because it was not the best time to borrow. It is expected that during the time, there is a record increase
in non-performing assets as borrowers fail to pay back due to low business.
Now, Speaking at the World Development Finance Forum 2020, Uganda Bankers Association Chief
Executive Officer, Wilbroad Owor said there is a great need for international lenders to help out where the local banks are strained or find
the business risky.
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in; Of course the default rates…
Cue out….to those sectors.”//
An assessment presented by UDB Executive Director, Patricia Ojangole
shows that on average, 80 per cent of private sector businesses need
financial help like physical cash,
debt rescheduling or direct loans to be able to overcome the effects of
the pandemic.
//Cue
in; 80 per cent agreed…
Cue
out…finance our economies.”//
The World Development Finance Forum was hosted virtually by Uganda
Development Bank (UDB) together with the Ministry of Finance, and the European Organization for Sustainable Development
(EOSD). It focused on delivering
tangible and breakthrough results to Development Finance Institutions
(DFIs) and their countries, in response to financing the National Development Agenda, the Sustainable Development Goals and the challenges and opportunities
emerging from the coronavirus crisis.
Amongst the key outcomes of the forum was the signing of the joint
resolution committing development finance institutions to jointly promote the
above objectives, the outcomes of which are critical for every country to
successfully achieve inclusive and sustainable growth.
Finance
Minister Matia Kasaija noted that despite the effects of COVID-19, there were
some opportunities created for the economies to take advantage of but noted the need for increased mobilization of resources from within and outside the
country.
//Cue in; You know for…
Cue
out…home and abroad.”//
At the forum, Uganda Development Bank Limited was among the three DFIs from around
the globe to be awarded Sustainability Certification in recognition of its commitment to
engendering sustainability in its strategy and throughout its operations.
