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To start and build thriving and domestically, regionally and globally competitive businesses, Ugandan Investors have been advised to focus on building for the long-term by getting the fundamentals right. This among others includes collaborating with the right partners; regulatory compliance including tax compliance, adopting sustainable practices as well as digitising their businesses to cut costs and create efficiencies.
Partnering with Uganda Investment Authority for the H2 2023 Investment Summit, Standard Chartered Bank assembled a panel of experts to equip investors with valuable insights and information on the economic market environment, personal & sector investment opportunities for the corporate and government institutions and simplified payment solutions, among others.
The Investment Summit which attracted 100 entrepreneurs as well as executives from government agencies, was among others addressed by Mr. Angelo Izama Opi-Aiya, a Board Director at UIA, Hon. Maria Kiwanuka, the Bank’s Board Chairperson and Sanjay Rughani, the Managing Director & CEO.
Other speakers included Charles Katongole, the bank’s Head of Financial Markets; Catherine Psomgen, the Head of Public Sector and Development Organizations, East Africa; Roselyn Najjuma, the Head of Transaction Banking and Lydia Nakamya, General Manager, Affluent Banking & Wealth Management.
Trevor Lukanga Bwanika, an International Tax Advisor & Senior Manager at PwC Uganda also spoke about Uganda’s tax landscape and the importance of tax compliance in building sustainable businesses.
Meaningful collaboration increases chances of success
Mr. Izama emphasised the importance of meaningful domestic, regional and international collaboration with other businesses, financial partners and governments, saying that collaborating increases participation and impact while decreasing the risk of failure.
“For some reason, Ugandan businesses don’t want to work with each other. I don’t know why. Some business people would rather own 100% of UGX100 million, instead of 10% of UGX100 billion. Why do you Ugandan businesses, not invest in this aspect of capacity building?” he wondered.
“In practical terms, collaboration means that businesses can pool together and share the kind of resources that they need, which makes it even less likely that they will fail. Collaboration essentially means that businesses don’t only share resources, but also share important values such as corporate governance and transparency. Collaboration builds long-term value and if businesses are working together, they can build long-term value over time,” he added.
On behalf of UIA, Mr. Izama urged businesses to collaborate with UIA and its partner government organisations under the Investor One Stop Centre (OSC) and take advantage of the numerous investment incentives such as affordable land and tax incentives on qualifying capital investments and expenditures such as on machinery, technology and training.
Izama further added “Most of the government incentives that we offer here, come in the form of deferred revenue. If you take all the categories of deferred revenue, which I call the size of the public investment, because the taxpayer foregoes that money to make sure that it can be ploughed back into your businesses, in 2021/2022⏤ government incentives, that’s deferred revenue, was UGX2.47 trillion,” he said, adding: “Although it has been said that Uganda doesn’t have good sources of patient capital, this is some kind of patient capital that comes in the form of deferred revenue, that we channel as investment incentives”.
Standard Chartered Bank⏤ a Force for Good
Sanjay Rughani reiterated the bank’s commitment to collaborating with the Ugandan government and the private sector, through its purpose⏤ “driving commerce and prosperity through our unique diversity”.
He stated, “Standard Chartered Bank has been in Uganda for 111 years and in that period has been a force for good,” he told businesses in the room, adding: “Your success is our success. Our main strategy, or our main area of focus is, we want our clients to win. We are one of those banks that want to be part of the DNA of the society in which we operate. We also want to be part of the future of Uganda and Africa.”
He invited Ugandan businesses to think big with the bank and leverage the bank’s 111 years legacy in Uganda and 170 years globally as well as take advantage of the bank’s global strengths.
“Our No.1 pillar is all about networks. We are a global bank. Our strength is in Africa, Asia and the Middle East. We are a bank that has a network. Please think about how together we can collaborate so that you can optimise our global enabling network, our experienced and knowledgeable staff and our bespoke solutions. Please stretch your ambitions whilst you’re talking to us,” Sanjay urged the businesses.
A passionate Sanjay also belaboured the bank’s commitment to sustainable financing, and the commitment to net zero by 2025 as well as raising USD300 billion towards climate transition by 2030. He also spoke about the bank’s determination to leverage its world-class products and solutions coupled with its global expertise to grow Uganda’s middle class, accelerate the affluent class, take more Ugandan businesses to the global scene, as well as the bold devotion to uplifting women and children by providing them with affordable financial access, and literacy/learning.
Hon. Maria Kiwanuka also emphasised the bank’s commitment to Uganda saying, “our legacy as the oldest operating bank in Uganda means that we have seen Uganda transition through the economic highs and lows and have actively played a part in contributing positively to the economic landscape that we have today”
“Our partnership with you and our innovations in the banking sector for the past decades have impacted Uganda. An independent study has found that Standard Chartered Bank’s support resulted almost in USD900m or almost 4% of GDP and 500,000 jobs which is 3.4% of the labour force,” she said.
“I do implore the business community to open your hearts and books to the finance people, to make sure that your projects are not only viable, but they are viable for affordable financing too,” she said, adding: “We all talk about affordable project financing, but we should instead say we want affordable financing for viable projects and that’s where Standard Chartered and other banking institutions can help us”.
Similar sentiments were shared across the panel with Charles urging investors to drive the attractiveness of the nation following recent market events and a revised focus on domestic fund sourcing. Noting the individual and business opportunities for investors present, Lydia affirmed our commitment to tailoring the right solutions with the right balance of return and risk appetite using a personalised advisory approach.
Following the successful set up of the Namanve industrial park with UIA that hosts over 300 investors, Catherine and Roselyn deliberated more on the need for E2E digitization, global credit and sustainable financing all of which the Bank has unmatched experience in.