Public Private Partnerships the future of Uganda’s energy sector – Mweheire
Kampala May 05- Pointing to the wide gap between investment and needs in Uganda’s power sector, Stanbic Bank says Uganda will need to bring on board private actors to fast-track its development agenda.
Speaking during the bank’s Trade Symposium on Power and Infrastructure, Stanbic Uganda Ceo Patrick Mweheire said though investment in power and infrastructure has long been identified as a key economic enabler, infrastructure constraints continue to impede Uganda’s economic growth.
While overhauling the sector is the desired path, the government lacks the means to go at it alone. This is where the private sector can play a complementary role, he argues.
“Lack of infrastructure has been identified as one of the main obstacles sustaining poverty yet it remains one of the most under invested sectors,” Mweheire observed.
To achieve the desired progress in these two crucial sectors, experts advise that government will need to increase the budget allocated to these sectors. Uganda committed 40 percent of its 2015 annual budget towards achieving the desired overhaul of the sector but will need different partnerships sustain these initiatives.
Mweheire said Stanbic has been at the forefront of supporting government’s strategy of focusing on attracting investments in the power and infrastructure sectors as a means of transforming the economy. The trade symposium on energy and infrastructure that the bank hosted today, builds on the bank’s efforts by creating a platform for decision makers to meet and discuss key developments, as well as allowing it to showcase the unique value chain of financial solutions developed.
“As a bank we have made deliberate efforts to support businesses operating in these two critical sectors. We provide financial guarantees to support the procurement process, letters of credit to procure materials to be used in construction projects, offer import loans, contract financing and structured trade financing amongst many others,” Emma Mugisha the Head of Transactional; Products and Services at the bank told the symposium.