The limited credit penetration reflects the quality and size of the private sector. While the agriculture sector accounts for 10 per cent of the outstanding private sector credit, together with building and construction, they continue to account for largest composition of NPLs. Another important source of capital for the private sector is through equity markets either through listing or issuance of corporate bonds. The Ugandan private sector is arguably small and prefers to stay informal. Without pragmatically improving the general business environment and growing a substantial middle income class, the level of financial leverage for private sector will remain low.

Source: The North Africa Journal April 02, 2017 21:56 UTC