By Moses Ndhaye
Operators of small and medium enterprises have asked Bank of Uganda to reverse its decision of increasing the paid up capital for commercial banks from the current Shs25 billion to Shs150 billion saying it will fail the SMES to access affordable loans.
The executive director for the federation of small and medium sized enterprises John Walugembe says it will exclude Ugandans from participating through investing in the financial sector.
He says implementing this proposal in its present form will instead advantage foreign owned banks to absorb most of the smaller players and place the destiny of SMEs in the hands of the foreigners.