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Loan facilities out of reach for Uganda's small businesses
Loans and advances to the private sector have grown by just 1.8% according to official figures from the Central Bank, with credit growth at 6% from 15% in 2016.

Refining the structural constraints that undermine Small and Medium Enterprise growth remains of the essence, if their contribution to Uganda’s economic development by way of enhanced production, expansion of jobs and aggregate demand.

 

This highlight comes up at a time when lenders reveal that Enterprises in the country are currently unable to absorb a record 2 Trillion shillings in excess liquidity owing to a wide range of issues within the economy.

 

Apart from that, Business coaches maintain the need for better readiness and effectiveness of funding interventions by government in the National budget, worth nearly 100Billion but whose impact remains wanting.

Loans and advances to the private sector have grown by just 1.8% according to official figures from the Central Bank, with credit growth at 6%  from 15% in 2016.

 

The Uganda Bankers Association has since captured the difficulty of aggregate demand within the economy that has kept credit supply at very low levels.

 

But business coaches insist that training of most enterprise borrowers in particular SMEs needs to be prioritised in order for the economy to receive a boost.

 

Speaking at a lecture on decades of economic reforms in Uganda, building the base for wealth and Job Creation, Governor Tumusiime Mutebile, hailed the potential of business and incubation hubs.