Businessmen targeting opportunities in Uganda’s oil industry have been cautioned about reckless acquisition of loans if they are to grow their businesses.
While speaking at an engagement on oil and gas opportunities in Hoima city, Mr Charles Ocici, the Executive Director for Enterprise Uganda, said much as loans can help businesses to grow, they have also led many to collapse or even disappear from the business world.
Mr Ocici tipped businessmen on avoiding high interest rate loans and multiple loans and always ensure that every loan acquired is for a specific business deal proven to be viable whether from banking institutions or individuals.
“You may want to expand your business faster to tap into the oil industry by struggling to meet the standards and end into reckless borrowing. You may bury yourself alive if borrowing is not well calculated,” warns Mr Ocici.
Reckless borrowing leads to loss of collateral properties in case the refund to borrowed loans fails.
However, he stressed that the issue of standards in the oil industry should be embraced to help Ugandan firms improve in the entire business sector.
“Nobody wants to know your name, your tribe and where you come from. Once you get an opportunity of supplying commodities in the oil sector, forget about your name because what is next needed is the quality and quantity of the commodity as per the contract,” he said.
According to him, nobody will put his business interests at risk because one is indigenous or Ugandan when one cannot afford to offer the needed commodity.
Ugandans should only prepare to compete since the oil industry will absolutely continue attracting investors from all over the globe who may even operate locally.
Mr Ocici also tipped businessmen on how to build systems in their companies, have succession plans, comply with tax obligations as well as register on the National Supplier Database (NSD) of the Petroleum Authority of Uganda (PAU).
On business expansion, he said over ambitiousness has led to the collapse of many.
“Opportunities will never end until you die. The best is to concentrate on improving what you have and use it to grow organically,” he said.
Mr Mathew Kyaligonza, the National Content Manager at the CNOOC Uganda Ltd, promised to continue facilitating experts to equip Ugandans with business knowledge in order to favourably compete for opportunities in the oil sector.
“Oil takes only about five per cent of the opportunities in the economy. So, we know that the knowledge you gain from these seasoned experts applies, too, to other economic sectors,” he said.
Mr Athanans Wampamba, the Manager Stanbic Bank Hoima branch, said they have introduced loans that can favourably finance businesses holding contracts in the oil industry.
“We offer different types of loans to support businessmen depending on the business. We try to ensure that the appropriate loan is given to someone to avoid challenges in servicing it,” he said.
He added that once one has a purchase order from a given company, they negotiate to facilitate service delivery and the appropriate terms are set for the payment after the client has paid.
Mr Allan Musoke Senkindu, a Senior Consultant, Capacity Building at Strategic Engagement, said more than 300 businessmen were trained during the six online sessions conducted in January and February this year.
Mr Brian Kaboyo, the Hoima city mayor, called for more engagements on business knowledge to increase participation of the oil host communities that have low capital and skills to participate in the oil industry.
The engagement organised by CNOOC Uganda Ltd through Strategic Engagement was conducted on a theme: “Building the Structure and Processes to Sustain Business Growth.”
It was attended by participants from many parts of the country as far as Lira, Nebbi, Nakaseke and Kampala.
Some were present at HB Hotel in Hoima city while others joined the online live streaming coordinated by Kazi-njema news.
