Kampala – 2nd May, 2024: The Uganda Manufacturers Association (UMA) officially launched her inaugural Financial Symposium and Exhibition slated for 8th-9th May 2024 at the UMA Multipurpose Hall themed, ‘Financing solutions for the manufacturing sector.’
While addressing the press, Mr. Deo J.B Kayemba, the UMA Board Chairman, noted that despite Bank of Uganda’s efforts in setting up fiscal policies to regulate inflation, manufactures still decry the high interest rates levied by commercial banks. He added that manufacturing, being a highly capital-intensive sector has not been able to grow as expected partly because of limited access to long term affordable financing. “Small and Medium Enterprises (SMEs) the backbone of our economy, face peculiar challenges in this regard, with access rates as low as 22.9%” Mr. Kayemba added.
The UMA Chairman also pointed out that high interest rates posed by commercial banks has derailed growth, especially of SMEs in Uganda and yet manufacturers require robust support to compete favourably in the market (East African Community, Common Markets for East and Central Africa, African Continental Free Trade Area).
The UMA financial symposium has been organised to create awareness of the available bank and non-bank financing solutions that can be explored by manufacturers to boost their competitiveness.
“At the symposium, we will look at various financing models, policy frameworks, and environment that have shaped the financing space in Uganda. Additionally, we will explore solutions from Industrial Banks, Conventional Banks, Development Banks, Micro Financing/savings schemes, Islamic Financing, Government Financing, and Capital Markets as potential avenues for funding,” said Mr. Kayemba.
Mr. Kayemba also noted that, “We will examine the impact of government policies and regulations on financing, share case studies of successful financing models, and explore opportunities for Public-Private Partnerships (PPPs) in financing for the manufacturing sector.
Ms. Juliet Byaruhanga, representing the Africa Development Bank (AfDB) acknowledged the need to work with the private sector to attain economic and social development. Through their initiatives like Feed Africa, Industrialize African and Integrate Africa, she noted that AfDB’s partnership with UMA is vital in providing financial products that offer manufacturers access to long-term credit.
Relatedly, Ms. Lyn Tukei, representing Capital Markets Authority (CMA) emphasized the need for sensitization on the available long-term financing solutions in a bid to increase uptake by local manufacturers and SMEs.
“We shall have an exhibition booth at the UMA Financial Symposium dedicated to educating the public on our services, especially the available capital-raising opportunities.”
The third National Development Plan (NDPIII) underscores the challenge of limited long-term financing options leading to use of short-term finance for long term projects. Additionally, underdeveloped capital markets provide equity and debt finance to only a small number of large firms, and development finance institutions lack financial resources to expand their operations.
To this end, the collaboration between UMA and CMA is vital in creating the much-needed awareness on the available capital-intensive solutions for Ugandan SMEs.
Mr. Samuel Matekha from Diamond Trust Bank Uganda (DTB) called upon the public to attend the two-day financial symposium in an effort to learn more about the favourable financial products the bank offers.
The two-day UMA Financial Symposium is proudly sponsored by: Africa Development Bank, Capital Markets Authority, Diamond Trust Bank and the Uganda Bankers’ Association.
The symposium aims to increase awareness about the diverse financing instruments available to support and enhance production, growth, and competitiveness of the manufacturing sector. The event will feature an exhibition from financial institutions, panel discussions, plenary sessions, expert presentations, and opportunities for networking with key players in the sector.
The journey of Uganda’s manufacturing sector has seen significant policy shifts since the 1980s, driven by liberalization, privatization, and market-oriented reforms. These changes have laid the groundwork for the growth and expansion of our manufacturing base, positioning Uganda as one of the best investment destinations for manufacturing in the East African Community.
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