Finance Minister Kasaija tasks CMA, UMA to sensitise manufacturers on long term non-bank, market based financing.
Businesses need alternative non-bank financing to realise long term capital. They should match their long term visions with partners like CMA and UMA. If well set foundation businesses can remain in cash from market based financing for long term growth with long term returns to the next generation.
As part of the implementation of the Memorandum of understand between Capital Markets Authority (CMA) and Uganda Manufacturers Association (UMA), the duo have embarked in a journey to engage the manufacturing sub-sector on several alternatives of raising long-term capital to foster their access to non-bank, market-based financing.
During a networking luncheon organised by UMA and CMA on Thursday 25th March 2021 at UMA main hall, The minister of Finance, Planning and Economic Development, Hon. Matia Kasaija said there is need for educating manufacturers to long term non-banking financing that will be invested in businesses to produce more money.
He said that if traders can grow their capital, it will enable them to buy shares that will save for a long term period.
“CMA educate Ugandans to invest in business through non banking sources to grow the money. If the cost of doing business is low, we will make profits and grow” he said.
Hon. Matia pictured above while speaking to the press on the sideline of the luncheon meanwhile said that though the recent ban on Ugandan maize on the Kenyan market has frustrated many Ugandans, many of whom have since asked the Government to block Kenyan goods coming to Uganda, cannot be solved with rudimentary measures but advised that the issues needs patience as they engage Kenyan authorities.
“Two bad things don’t produce a right one. When we block Kenyan goods, it automatically means that we have launched a trade war among ourselves. Who will win and who will lose? Some of these things need patience, we are engaging the Kenyan Government quietly although many people don’t know this,” he added.
He however did not give a timeline when to resolve the misunderstanding.
“Any time from now, Remember this is a marriage for two parties where a man cannot force a wife to have children when she doesn’t want to,” he said
The Executive Director, UMA Daniel Birungi said that following the signing of the MOU between CMA and UMA they have gone along way in activating measures aimed at educating, processing requirements to access capital, and addressing statutory hindrances to finance.
He urged government to change the mindset of saving institutions like SACCOs to develop a growth to enable them utilise the saved money.
“As UMA we are cognisant of the wealth of money in the SACCOs in Uganda, government needs to activate the SACCO mind into a growth mind. Government should utilise the money locked there to bring down the cost of accessing credit” he said
He said that there is need to liquidate funds into productive use through discussing market issues in Uganda and the regions at large.
“We can unlock finance through enabling affordable mortgages, liquidate funds into productive use. As we solve the capital problem, we need to discuss market issues to enable sale of the products “ he said.