Saturday, February 2, 2013


If I were at all influential or a mover of things in Buganda, I would put all my effort into a successful Buganda Investment Bank (BUGIBA). A well managed Buganda Investment Bank (BUGIBA) is the sustainable strategy to see Buganda and Uganda out of poverty. Buganda does not need to start a Commercial Bank as of now, instead it needs to mobilize capital locally and internationally to see a soundly based investment bank in place. This bank would basically handle big projects that can generate tangible multiplier effects in Buganda and Uganda at large. The starting point is to form a Public Limited Liability Company, where all interested would buy shares. Secondly come up with a very technical and ethical Board as well as management team of experts in the field; and these don't need to be a preserve of Baganda. One area the bank would encourage is the promotion of the growing of plants that can be used in the extraction of Bio-fuels that can substitute Diesel use. It is unfortunate that as of now, industrialization based on Hydro - electric power can not produce goods that can be competitive on World market simply because the cost per watt hour is out of the ordinary! But Bio- fuels can run industries that we can target and have goods competitive on international market, the reason why the bank would take great interest in seeing locals grow plants that can be extracted for bio-fuels, yet, many such plants don't need fertile soils. Buganda needs the existing Commercial banks to help fund the people in their ventures for the produce which would form the raw materials in the agro- processing industrialization; and working together with Busoga region for the start would increase viability of the projects as Busoga has prime land that can greatly boost agro- processing industrialization. So, it would be wrong for Buganda to start a Commercial bank whose impact may not be there given that the existing commercial banks and micro finance institutions can provide the resources the people need to feed the Investment bank which can have tangible multiplier effects in the economy once well managed. The Investment Bank would promote industries which are not generally owned by individuals. A case in point if fruit canning in Masaka. The industrial infrastructure would be put in place through use of support from external source lines of credit and skilled management would be established and the bank would help in the realization of capital to buy off farmer produce, while the farmers would reach out to existing financing channels to be able to produce. When big industrial establishments are opened up countrywide, chances are that these will be the poles of growth of various regions in Uganda, and you can be sure, if right professionals are picked and good supervision network enhanced, then the region and Uganda at large will get the impact of the bank and poverty would gradually be overcome. What is needed as of now is not to rush, but come up with an establishment that will enhance growth that is sustainable in Uganda. The powers that be MUST avoid the experience of Teefe bank. Merely having influential Baganda in any bank establishment cannot ensure success. Competent management with very strict rules can make a difference. William Kituuka Kiwanuka

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