Kampala — PRESIDENT Yoweri Museveni has saluted young entrepreneurs engaged in value-addition to Ugandan products for both local consumption and export.

This, he said, was a wake-up effort to banish export of raw materials.

The President said he was impressed by the young generation, particularly university graduates, for this initiative "instead of roaming the streets looking for jobs".

"This is the young generation which speaks Kampala Parents' School English," Museveni said. "The trend is now changing from the youth being job-seekers to being job-creators." Kampala Parents' is an elite primary school located in Naguru, a posh city suburb.

The President made the comments on Saturday while opening the 15th annual general meeting of the African Export-Import Bank at the Speke Resort Munyonyo, Kampala. The bank last held its annual meeting in the East African region in Dar-es-Salaam in 2002.

After the meeting, Museveni toured an exhibition organised by Ugandan entrepreneurs, State House said in a statement. The President, the statement added, was impressed by the entrepreneurs. In particular, he hailed Agro-Processors and Consultants, which processes fruit pulp and sun-dried mangoes, pineapples and bananas. The firm is based on Kampala-Masaka highway.

The President also hailed Tembo Industrial Footwear, the manufacturers of army boots and Palm Craft Centre, the makers of bags, file covers and money purses.

Palm Craft Centre proprietor Jotham Thembo, in his early 30s, started as a hawker in St. Balikuddembe (Owino) market, Kampala, 10 years ago, with just sh2,000 capital. Now he has a sh5m annual turnover from his Ntinda-based firm.

The President also toured the stall of COSEDA Enterprises, exporters of fresh fruit and vegetables based at Kalamba in Mpigi district.

Advising entrepreneurs on how to raise capital, Museveni said the use of land titles as collateral for acquiring loans from banks should be restricted to small businesses.

"Land titles are for chicken business, goats or pigs but not for businesses that require $10m."

Museveni commended the bank for extending a $10m (sh19b) credit to the Uganda Development Bank to finance export trade.

The Egypt-based bank, he noted, had boosted intra-Africa trade, which has boosted the integration of the 35 African countries where it operates. "I am confident that the volume of business between the bank and our firms in Uganda will continue to grow."

Museveni also criticised those struggling for jobs in international organisations, saying integration was for trade and not for jobs. "It is about trade and uniting markets to make them bigger."

Museveni, however, called on the bank to prioritise the financing of infrastructural projects, especially railway transport and energy sectors, in order to further spur regional trade.

The President also noted that railway transport was the cheaper means of transporting merchandise. "Railway is the battleground for profits."

Finance minister Dr. Ezra Suruma was happy that Ugandan bankers and traders had benefited from the bank.

The recent summit of the East African Community, the Southern Africa Development Cooperation and the Common Market for Eastern and Southern Africa that sought to create a single economic bloc provided the bank with a bigger trade area.

Jean Louis Ekra, the president of the bank, called for a fund to help African countries impacted by global financial turmoil.

He said he would ask the AU to call a meeting of regional financial institutions to provide funds to deal with the crisis that "can destroy all the gains made by Africa."

The bank, Ekra said, had posted an increase in net income of 16% to $36.5m last year. He said total assets expanded by 30% to $812m by the end of 2007.

He said the board had proposed an increment in shareholder dividends to $8m for 2007 from $6m the previous year.