Kampala, Uganda – As the 2nd Annual Financial Symposium and Exhibition enters its final day, key themes of sustainability, investment readiness, and the urgent need for innovative funding models beyond traditional debt have dominated the discourse, providing Ugandan manufacturers with critical insights for future growth.

The two-day event, running under the theme “Innovative Financing Solutions for a Sustainable Manufacturing Sector,” has brought together a full spectrum of Uganda’s financial and investment ecosystem. The discussions from the first day have already set a clear tone: for manufacturers to thrive, they must become more strategic in their financial planning and embrace sustainability not just as a compliance metric, but as a financial asset.

A major topic of discussion on day one was the high cost of capital. In his opening remarks, Minister of State for Industry, Hon. David Bahati, highlighted the challenge of interest rates ranging from 17% to 23%, appealing to commercial banks to develop specific, lower-cost funding windows for manufacturers to foster industrial growth.

In response, financial leaders have emphasized that a company’s own planning and financial discipline are crucial. Bankers noted that well-structured business plans, good corporate governance, and a solid track record are essential for negotiating better financing terms. The dialogue has clearly shifted from a simple plea for lower rates to a more nuanced conversation about a shared responsibility between financiers and manufacturers.

Key takeaways for manufacturers from the ongoing discussions include:

1. The Rise of Market-Based Financing: The Capital Markets Authority (CMA) has been vocal about providing alternatives to bank loans. By preparing businesses for the Uganda Securities Exchange’s Growth Segment and the “Deal Flow Facility,” the CMA is creating pathways for manufacturers to access long-term “patient” capital through equity and corporate bonds, which is vital for significant expansion.
2. Sustainability is Bankable: Institutions like the International Finance Corporation (IFC) have reinforced the global shift towards sustainable finance. Manufacturers are learning that demonstrating a commitment to environmental, social, and governance (ESG) principles can unlock access to specialized green funds and improve their appeal to international investors.
3. An Enabling Government Framework: The participation of the Uganda Investment Authority (UIA) has been crucial, linking finance to the broader investment climate. The UIA’s role in providing serviced land in industrial parks, facilitating licensing through its One-Stop Centre, and offering investment incentives creates a de-risked environment that makes financial investments more secure and attractive.
4. A Full Spectrum of Financial Partners: The strong presence of leading banks—including Absa Uganda, Centenary Bank, DTB Uganda, and Equity Bank—has showcased the wide range of available products. From asset financing and trade finance for SMEs to large-scale corporate funding for major industrial projects, the message is that tailored solutions exist for businesses at every stage of their lifecycle.

As the symposium and exhibition conclude today, the overarching message for manufacturers is one of strategic action. The financial tools are available, but accessing them requires meticulous preparation, a forward-looking embrace of sustainability, and a clear understanding of the diverse options that lie beyond a traditional loan application. The collaborations and insights gained from this event are set to energize the financing landscape for Uganda’s industrial sector.