The Export Import (Exim) Bank of India is channelling money through regional and national development banks to local entrepreneurs in long-term loans. The reasoning behind this is to raise the financial muscle of local entrepreneurs so that they can negotiate at parity with potential business partners from India.
Dr Margaret Kigozi, executive director of the Uganda Investment Authority (UIA), said her organisation and the ministry wanted sectors to include small and medium enterprises, transport, aquaculture, agroprocessing and construction infrastructure.
The business conclave is part of the India-Africa partnership, a programme which seeks to guarantee the supply of agricultural products and natural resources for the Asian country's rapidly growing economy. Through joint ventures with local partners, India pledges to pass on skills and cash investments in the agricultural sector, financial services, ICT, banking and insurance.
However, countries in the region will have to deal with problems of inadequate long-term capital and the energy shortage.
Governments such as Uganda's will need to convince potential local partners that there will be no favouritism in forging these partnerships as the country is home to many citizens of Asian origin - some of whom are the leading business personalities in Uganda.
"It is obvious that they consulted some of the Indians who are already operating here, but when it comes to investing, all Ugandans - including those of Asian origin - will all be treated equally," said Mr Kamuntu.
The question of favouritism, which usually raises emotions among local traders when it comes to foreign investment will be put to the test when the Indian delegation arrives.
Sources say EXIM Bank will channel funds for these partnerships, partly to remedy the problem of inadequate long-term finance .
The bank has already extended lines of credit worth $5 million each to the East African Development Bank and the PTA Bank while negotiations with the Uganda Development Bank Ltd for a similar facility are going on.
In 2006, Uganda imported goods worth $90.92 million and exported goods worth only $2.81 million to India. Between January 2006 and March this year, India had registered 109 projects whose planned investment was about $230 million and projected to create 9,608 jobs.
Uganda Investment Authority said the meeting will be held just before two similar meetings in Mozambique for the Southern Africa region and in Ouadogou, Cote d'lvoire, for the West African region.
The Confederation of Indian Industry, in conjunction with the Indian government and EXIM Bank of India are organising the meetings.
Source: East African
To receive regular email alerts, contact us at updates@developmentprogram.org
Click here for Newsletter Archive |
