27 November 2012

Uganda: Buganda Moots Bank Idea

The Katikkiro of Buganda, John B. Walusimbi, has revealed that come January 1, 2013, Buganda will establish a financial institution for Buganda kingdom.

He broke the news while closing the youth agricultural exhibition at St Paul's church, Mukono recently.

"People have been asking me for a Buganda bank wherever I have gone. We have given it a thorough thought and a financial institution will be set up starting next year," he said.

The Katikkiro said he is personally spearheading the project and he has set up a committee that is finalizing on all the documentation required for registration and certification by the responsible authorities. Meanwhile, Walusimbi asked people not to be worried; he said this institution would not collapse like the Teefe trust bank, which was a bank for Baganda.

"Teefe was owned by Baganda people but this is going to be a Buganda institution. We shall use its [Teefe's] collapse as a learning lesson to build a sustainable institution for Buganda," he said.

"We may start small but we shall follow all the steps to become a bank as fast as possible," he said.

Walusimbi called on all Baganda and Ugandans in general to support this initiative. Of the 25 licensed commercial banks in Uganda, it is only Crane and Centenary, which are indigenous.

If it is to have a bank, Buganda will have to raise at least Shs 25 billion in minimum capital as stipulated by law. The introduction of another indigenous bank will be a big boost to all Ugandans and the banking sector in general.

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