This was a fulfillment of what the executive promised the prospective partners in the collateral management project aimed at facilitating business amidst covid-19 pandemic.
The project aims at facilitating traders to ably meet their tax obligations on time especially on their imported goods while avoiding the high interest rates from money lenders something that has pushed many out of business.
Also, many have failed to access timely credit facilities from banks due to both the bureaucracy plus the strict and harsh collateral/security conditions.
People have frequently feared to present their physical collateral including land tittles and logbooks due to the perception that banks only aim at confiscating their property. In this arrangement however, people’s stock shall itself act as collateral.
We hope to largely facilitate trade since traders shall be given am opportunity to take a portion of the stock which he will be selling as they pay back to get more goods from the warehouse.
This is partnership is looking at various partners who include Kenlloyd logistics company for all logistics and warehousing, Uganda Revenue Authority for tax clearances, Coronet consults as the guarantors and I Durance providers, banks for financing and KACITA Uganda for recommendation and publicity to the business community