The State House Investors Protection Unit and the National Planning Authority (NPA) on Thursday held a brainstorming meeting on the establishment of an Indigenous Patient Capital and Cross-border African Investment Bank.
The meeting was held at the State House Investors Protection Unit Offices in Kampala.
The meeting comes hot on the heels of the President’s directive to the unit to see how NPA can work with the private sector (TRAVACO) and the financial sector to realise the dream of setting up the indigenous patient capital and cross-border African Investment Bank among interested African countries like Tanzania.
The unit head, Col. Edith Nakalema expressed gratitude to the NPA, the Trans-Africa Value Corridor (TRAVACO) Ltd and other partners for spearheading the establishment of the two initiatives.
Col. Nakalema also informed the meeting that President Yoweri Kaguta Museveni is willing to support the idea in order to ensure that it works out.
Prof. Pamela Mbabazi, the Chair of NPA said the indigenous patient capital refers to a long-term financial investment where sustainable growth is prioritised alongside financial returns.
“It focuses on initiatives that require time to grow and if we could unlock our ability to mobilise patient capital, we shall be able to execute many projects like the Standard Gauge Railway,” Prof. Mbabazi explained.
“While Uganda has a wide range of investment opportunities that could lead to the development of the country, it still faces the problem of funding and this project will help to address these financing gaps.”
Prof. Mbabazi further revealed that the capital will also help to strengthen the private sector which is key in driving the socio-economic transformation of the country. She said the sector is being frustrated by among others, high interest rates and limited funding.
The Managing Director of the National Social Security Fund (NSSF), Mr. Patrick Ayota said the idea of mobilising patient capital is a crucial one and it has helped a number of countries like China and Singapore to economically develop.
He also noted that the seed capital of USD5 million needed to kickstart the establishment is very little, and it should be mobilised by the stakeholders to achieve the vision.
The Bank of Uganda Executive Director In charge of Supervision, Mr. Tumubweine Twinemanzi said the idea is a good one but in order for it to be successful, stakeholders need to first instill trust among investors willing to rally behind it.
Dr. Beenunula Eyenunula, the CEO of TRAVACO said the project is aimed at dealing with the barriers such as capital deficits and infrastructure gaps that hinder the development of Uganda’s economy.
Maj. (Rtd). Gertrude Njuba advised that as the people behind the project, they need to do more work in the area of asset management to ensure that they convince the government to rally behind them.