By Moses Ndhaye
Financial institutions have been asked to make borrowing more affordable to help support their clients with businesses entities that have been severely affected by the COVID-19 pandemic.
According to Stanbic Bank’s Chief Finance Officer Samuel Mwogeza, one of the ways to achieve this is by reducing interest rates which currently average at 21%.
He is optimistic that with such innovations, the country’s economy will quickly register a steady growth.
Mwogeza was speaking at the launch of a 3-month campaign code named “Now-Now Loans”, where the bank has reduced interest charged on loans to 15.9% to help their customers boost growth of their battered businesses.
According to the Uganda Investment Authority, SMEs make up about 90% of the private sector and are directly linked to over 80% of manufactured output.