Museveni vows to crash money lenders

In his address, President Museveni decried the high-interest rates imposed by moneylenders and their negative impact on profit margins for manufacturers. He emphasised the importance of securing “patient” capital, encouraging borrowing through the Uganda Development Bank (UDB), Emyooga, and the Parish Development Model (PDM) rather than resorting to moneylenders.

"The money from the banks must not have high interest rates because in that case, how will you make any profit? That is why the government insisted on borrowing from UDB, Emyooga, and PDM. We also warned you to stay away from moneylenders. Moneylenders are your enemies and I am going to do something about them," Museveni declared.

The President lamented the exploitative agreements moneylenders have victims sign, which often lead to borrowers losing their collateral for significantly less than its value. He criticised the practice, stating, "How do you allow someone to lend you money, and in the agreement, you sign that you sold him your collateral? He gave you 2 million shillings, but in the document, you say you sold him your collateral."

President Yoweri Museveni at the Kapeeka tradeshow pulse uganda

Assuring Ugandan farmers and manufacturers of the government’s support, Museveni promised to take decisive action to regulate moneylending practices. "We are going to rescue you now… we are going to deal with the moneylenders. They are criminals," he asserted.

President Museveni further stressed the importance of providing affordable capital to essential sectors like agriculture and manufacturing, as opposed to those borrowing for leisure activities. "Money for manufacturing and agriculture must be cheap money. Those borrowing money for nightclubs and those importing wigs and perfumes can go to commercial banks and borrow expensive money," he remarked, distinguishing the priorities for financial support.

The President’s comments were part of a larger effort to promote economic growth through industrialisation and agricultural development. During the event, he praised Gen. Salim Saleh for his contribution to establishing the Kapeeka Industrial Park, which has become a model for boosting local industry and trade. The trade fair also saw discussions on financial support for farmers and strategies to resolve land conflicts, ensuring the continued development of the industrial sector.

With Museveni’s commitment to tackle moneylenders, Ugandan manufacturers and farmers can expect a more supportive financial environment, aimed at fostering sustainable economic growth and reducing exploitation by predatory lending practices.