President Yoweri Kaguta Museveni has urged National Development Banks to prioritize financing for the private sector and strategic infrastructure, stressing that this is essential for job creation and sustainable wealth generation.
Speaking at the opening of the Uganda Development Finance Summit, Museveni noted that although Uganda has heavily invested in physical infrastructure, this has not translated into significant wealth creation. He criticized development partners such as the World Bank and IMF for channeling most of their support into social sectors and road construction, while neglecting critical areas like railways and electricity, which he said are vital in reducing production costs.
“The rational way is to have the railway transport cargo cheaply, pipelines move fuel, and roads carry light cargo and passengers. But funding for such infrastructure is hard to secure—and when it comes, it is only for roads, never for railways or electricity,” Museveni said.
The President challenged the Uganda Development Bank (UDB) to reduce its interest rates below 10%, down from the current 15%, arguing that this would require cutting luxurious expenditures at the bank.
He emphasized that commercial bank rates of 22–25% are too high for serious private sector investments, forcing many businesses to import items such as cosmetics instead of venturing into productive industries.
Museveni stressed that empowering the private sector with affordable credit, reliable electricity, efficient transport, and access to regional markets would spur innovation, boost production, and ensure sustainable economic growth.
On markets, the President called for accelerated integration of the African market to unlock business opportunities.
He argued that Africa’s fragmentation limits its potential, despite having a population of 1.4 billion that could provide a solid market base. Citing China as an example, he noted that its large integrated market has enabled it to attract substantial foreign direct investment, unlike Latin America, which, despite abundant resources, remains underdeveloped due to weak market integration.
Museveni further underlined the importance of visionary leadership and integrity in managing African economies.
He said the NRM government’s vision is to incorporate all Ugandans into the money economy through integrity, promoting a savings culture, and prioritizing transformative programs like the Parish Development Model (PDM), which enables communities to produce for the market.
“The managers of Africa’s economies must have vision and integrity. Without these, development is impossible. Many of our people lack both. They also fail to save; they eat the seeds instead of planting them. We must prioritize projects that yield quick and tangible results, such as PDM, which helps villagers join the money economy,” Museveni said.
Dr. Patricia Ojangole, Managing Director of UDB, highlighted the critical role of national development banks in bridging financing gaps, particularly as global financial institutions grapple with challenges.
She expressed optimism that the summit, themed “Transforming Africa through National Development Finance Architecture,” would generate innovative solutions to accelerate growth across key economic sectors.
