‘Infrastructure projects too expensive for local banks’

By Mark Keith Muhumuza

Kampala — As Uganda enters into a phase where private money is being sought to finance infrastructure projects such as the $1b (Shs3.3 trillion) Kampala-Jinja Expressway, banks are expected to play a role.

However, such ambitions have been played down by the country's largest bank - Stanbic. Mr Patrick Mweheire, the bank's managing director, said the 25 commercial banks in Uganda combined can only raise up to $200m (Shs664b) for a single project.

"Banks cannot do everything. The expectation that banking can fund all infrastructure projects in Uganda is rather misguided," Mr Mweheire told technocrats, regulators, and construction and insurance company managers at a symposium on power and infrastructure projects last week.

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