Why are loan rates & mortgage rates so Expensive in Uganda?
June 17
Friends,
Join me this evening (Monday June 17, 2024 7 PM Uganda Time ) as I host a panel of guests in the finance industry, with a particular focus on loans and mortgages, as we discuss the pressing issue of why borrowing interest rates are exorbitantly high in Uganda.
We will explore why Ugandan commercial banks are hesitant to embrace mortgages and why, for those that do, the terms are costly and short-term.
We have a multifaceted discussion ahead of us, covering the borrowing and lending landscape, the credit industry, risk assessment, and credit scores in Uganda.
We will discuss the risks associated with this type of lending, which are contributing to steep interest rates, leading to a surge in foreclosures and the collapse of businesses in the country.
If you've ever secured a loan from a commercial bank, you're aware of the steep rates, particularly for business loans. Even for personal loans, the costs are prohibitive, and access to capital is becoming increasingly unaffordable in the country. We will discuss the critical factors driving these costs, including the government's preference for borrowing from domestic market through treasury bonds and bills.
Our panel includes a seasoned banking professional Damalie Nankya Mubiru with over 15 years of experience, who has guided numerous clients through the intricacies of loans, payment schedules, and strategic borrowing for both business and personal needs.
We will also hear from a risk and finance analysts from Blacklight Advisors (
& ), who will educate us of the risks involved in borrowing and advise on when it may be prudent to avoid loans, given the high cost of financial capital.Additionally, a seasoned businessperson, and a pro- Uganda business focused man in Antony Natif with over a decade of experience, now an activist, will join the conversation. This individual has successfully raised capital and navigated the business world, and will offer advice on how to circumvent the challenges posed by the current financial system in Uganda.
When will the economic backdrop of Uganda favor its entrepreneurs and investors?😪