KAMPALA- Bank of Uganda would like to see careful management of investment clubs with members benefiting in the best way possible.
This according to Mr Allan Lwetabe, the Bank of Uganda Assistant Director for Investment, is one of the most solid ways through which wealth and economic growth can be nurtured.
While speaking at the Investment Clubs Association of Uganda in Kampala recently, Mr Lwetabe said Bank of Uganda was determined to promote governance in investment, adding they were concerned about lack of prudent management of some investment clubs.
“We expect members to ensure that there are proper checks and balances to,” he said.
While speaking on the sideline of the African Economic Research Consortium in Kigo Wakiso recently, Dr Adam Mugume, the Bank of Uganda executive director in charge of research and policy, said SMEs must find alternative and cheaper sources of funding among them investment clubs.
“As the Central Bank we don’t mind alternative and better sources of financing,” he said, adding it was pricey for SMEs to rely on financing from commercial banks given the high interest rates.
According to Mr Stephen Luyonjo, the Investment Clubs Association of Uganda chairman the association has an estimated portfolio of about Shs20b in cumulative members’ savings.
Mr Luyonjo said they were more focused on creating sustained growth of Investment Clubs, beyond just pooling resources
Dr Peter Ngategize, the head of the Ministry of Finance private sector development unit, said without collective pooling of resources at primary levels such as Investment Clubs, the cumulative net benefit of inclusive economic growth could be missed.