The Observer (Kampala)

13 July 2014

Uganda: Mukwano Joins Oil and Mining Association

Photo: Marcus Bleasdale/HRW
The government to review mining laws (file photo).

Mukwano group is the latest company to join the Uganda Chamber of Mines and Petroleum, an association that strives to create a favourable environment for responsible business conduct within the country's extractives industry. In joining the chamber Mukwano will tap into an association that has more than 100 members, ranging from not just oil and mining, but insurance, banking, to clearing and forwarding firms.

According to a source, Mukwano has made a long term commitment to sticking with the chamber ahead of the upcoming mineral wealth conference in early October, where top international miners fly into the country to scout for business opportunities. Mukwano group has much of the goods and services to support Uganda's extractives industry. The company is engaged in agriculture, beverages, logistics and supply, among others.

Perhaps of more interest is Mukwano's connection within Uganda's banking industry, where it owns Imperial Bank of Uganda. With Uganda in the early stages of unrolling a $12bn oil development expenditure plan, a number of local businesses will need the finance to support the oil industry.

With the retail banking market looking saturated, Imperial bank could look at such corporate clients to grow its loan book. The extractives industry could be a strong starting point for the bank.

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