While appearing in a fiery address, President Yoweri Museveni has pledged to crack down on predatory money lending practices, accusing them of stifling economic growth in Uganda.
Speaking at the commissioning of the Karuma Hydropower Dam, Museveni condemned lenders who impose exorbitant interest rates, claiming they are hindering entrepreneurship and development.
The President highlighted the plight of Atiak Sugar Works Ltd, a company in Amuru District, as an example of a business driven to the brink of collapse by crippling loan repayments.
He argued that high interest rates prevent businesses from generating profits, ultimately harming the country’s economic prospects. And he mentioned that he must crush and make those money lenders leave his economy if they do not want to change the way they do things.
Yoweri Museveni went on to champion government-backed lending initiatives such as the Uganda Development Bank and Emyooga, urging citizens to utilize these schemes instead of turning to exploitative lenders.
He stressed the importance of affordable electricity and efficient transportation networks for fostering industrial growth. The President pointed to the Karuma Hydropower Dam, with its cheaper electricity rates compared to the privately-operated Bujagali dam, as a step in the right direction.
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This strong stance against predatory lending comes amid growing concerns about the impact of high interest rates on Ugandan businesses and individuals. The President’s commitment to tackling this issue has been welcomed by many, but it remains to be seen how effectively these measures will be implemented.
