Develop financial services sector - Museveni

President Yoweri Museveni has asked financial services providers to institute measures to increase the banked population so as to mobilize more savings and facilitate faster economic development.

His message was contained in a speech read for him by Prime Minister Ruhakana Rugunda at the President's Exporters' award held at the Imperial Royale Hotel in Kampala last Thursday.

He said that effective modes of transport such as quality roads, railways, ports and air transport are crucial boosting productivity and enable entrepreneurs move their products to market in a secure and timely manner.

Although savings help in mobilisation of cheap capital, Uganda's saving culture is still low, with majority of Ugandans operating current accounts where money is withdrawn any time.

Though there are about 25 banks in the country, available data from Bank of Uganda shows that there were about 6m bank accounts, compared to 19.5m mobile money accounts early this year, shared among only four players including MTN, Airtel, Uganda Telecom and Africell.

Roofings Group, who emerged the overall exporter of the year, received the Platinum award. (Credit: Juliet Kasirye)

The other bottlenecks that have to be addressed are the low contribution of manufacturing to the national economy, underdevelopment of the services sector, subsistence nature of agriculture, low value addition and corruption.

"We need to end the slavery of exporting raw materials. We need to focus on value addition and industrialization to transform the economy," Museveni said.

Available statistics from the UEPB indicate that although the value of Uganda's exports rose from $2.8b (sh10 trillion) in 2011 to $3.25b (sh11.7 trillion) in 2012, it stagnated at $3.25b (sh11.7 trillion) in 2013, before declining to $3.14 (sh11.3 trillion) in 2014 and $3b (sh10.8 trillion) last year.

Trade Minister Amelia Kyambadde urged Ugandan enterprises to improve exports to close the trade deficit, which currently stands at about $2.5b (about sh8.9trillion).

The Uganda Export Promotion Board Executive director, Elly Twineyo Kamugisha said Uganda needs to devise ways of growing her exports to meet the $8b that government targets to earn from exports by 2020.

Twineyo applauded government efforts in constructing power dams, saying that stable power is vital in supporting the growth of the manufacturing sector.

The winners

The awards sought to recognise the achievements of companies that continue to work towards a vibrant and dynamic export sector of the economy.

Roofings Group emerged the overall exporter of the year. Kakira Sugar won the sugar exporters' gold medal, Tororo Cement took the cement exporters gold award while Movit won gold in the cosmetics exporters category.

Others that were awarded include Uganda Breweries (Alcohol beverages), Pearl (Diary), Hope Trading (Hides and skins), Esco (Cocoa), Wagagai (Flowers and cuttings) and Aponye Uganda Ltd (cereals and pulses).