Kadaga wants special fund for local investors

The Speaker of Parliament Rebecca Kadaga has implored the government to set up a special fund where local investors can get resources to boost their ventures.

According to Kadaga, many promising domestic investors have been pushed out of business as a result of increased interest rates on bank loans, which is their only source of capital.

"There should be a special fund for local entrepreneurs or investors, where does the government expect our people to get money when interest rates are at 26%," Kadaga asked.

Speaking during a courtesy visit to Euroflex Limited, the producers of Eurofoam mattresses in Uganda, Kadaga noted that the government has tried to put up incentives for local investors, but have not helped many Ugandans as they only target investors operating in free zones and with a specific amount of capital investment.

Describing herself as an investor owning three Hotels, Kadaga said she had failed to benefit from the tax incentives extended to local investors.

With a special fund, Kadaga expressed optimism that local investors will be able to access resources for industrial development.

Citing the Chinese investors, Kadaga said most of the foreign investors in Uganda, access cheap credit from their governments which is not the case with Uganda.

"I am also an investor but I have never got support, there is a policy by the ministry of finance on incentives and I have three hotels but they say I do not qualify for incentives. We need to mount pressure on the government for more incentives," Kadaga said.

She commended Eurofoam which employs over 300 Ugandans at the Kirinya-based industry in Wakiso district, for having confidence in Uganda, by establishing industries in the country. The mattress factory has been in existence, for the last 18 years.

Taxes

The Eurofoam managers appealed to the government to consider a reduction in taxes imposed on raw materials used in the manufacturing of mattresses, which they said are very high.

"Some of the raw materials we use to make these mattresses are highly taxed, if we are to grow industries, the government should cut on taxes because they hinder investors from coming to invest here," Ernest Kasule, the head of operations at Eurofoam said.

He noted that because of the increased taxes, the end consumers are affected as a result of high prices for the mattresses.  He added that the high taxes, also affect their production.

The investors urged the government to ensure a conducive environment for investors both local and foreign if Uganda is to attract more investors in the country.

On Tuesday, President Yoweri Museveni commissioned 10 factories in Buikwe and Jinja districts, pledging more tax incentives to investors and a secure environment, to enhance the transformation of the country.