• Mon. Sep 25th, 2023

Construction Firms Negotiate Low Interest Loans with UDB

UGANDA, Kampala | Real Muloodi NewsUganda National Association of Building and Civil Engineering Contractors (UNABCEC) have said they are negotiating with Uganda Development Bank (UDB) for its members to access low-interest loans.

Speaking during the association’s annual general meeting in Kampala on 15th December 2022, Mr Jamesone Olonya, the UNABCEC president, said their members should be considered for cheaper financing.

“We are discussing with UDB so that they can give us single digit loans,” he said, without going into further detail.

He claimed that because it takes them longer to turn a profit from their investments, construction enterprises are by nature in need of patient capital.

Mr Olonya added that delayed payments make things even more difficult for construction contractors, particularly for companies working on government projects.

According to Mr Olonya, at least 90 percent of UNABCEC’s members have experienced expensive payment delays on the part of the government.

Mr Olonya also stated that UNABCEC backed the government’s initiative to salvage Roko Construction Company, which had disclosed in June that the impact of Covid-19 had negatively impacted its operations.

“We stand with Roko. Their projects have been fit for purpose and they have been around for some time,” he said.

Roko was finally bailed out by Parliament in July with a supplemental request of USh207 billion.

Mr Olonya further stated that under their five-year strategic plan, UNABCEC would strengthen controls to filter out quacks, negotiate fairer loan conditions, and demand quick clearing of debts by the government and that the organisation modified its constitution to make members more accountable.

The annual general meeting brings members together to account for activities performed to benefit its members.


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