Speaker of parliament Jacob Olanyah has argued Uganda development bank to reduce its lending rates from 12% saying that access to affordable loans by the majority of Ugandans is a key driver of social-economic transformation.
Olanyah was meeting board of officials where he noted that the 12% is still high for long-term investment, he said the majority of Ugandans fail to sustain businesses because they spend their earning paying back loans occasioned by high-interest loans and noted that the framework for lending by Uganda development bank should be different from commercial Bank because borrowing money is now taken as a death warrant for the company and owner because many business prospective people have been buried when their property is taken by Banks after failing to finance their loans well.
According to Olanyah such challenges can be addressed by a deliberate effort by banks to invest enabling access to cheap loans.
The managing director of Uganda development bank Patricia Ojagule said the bank has a deliberate strategy to create supporting opportunities in Kampala and other regions of the country by setting branches throughout the country.
She says the bank will start providing business advisory services to small and medium enterprises to enable them to access financing.