Top Ugandan entrepreneur goes bankrupt, selling off all his assets

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By Our reporter

This is not good news. The state of Uganda’s A-list –call them seasoned entrepreneurs are slowly and gradually disappearing from the social scene.

Unfortunately, there are no young entrepreneurs to take up the vacuum. According to analysts, if the current state of affairs continues, soon or later, many of the currently rich Ugandans will be no more.

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Recently, Uganda Revenue Authority put WBS TV owned by seasoned local entrepreneur Gordon Wavamuno under receivership over tax arrears amounting to Ugx. 7.2 billion. We thought this was just one off, but we were wrong. The problem is much bigger than we thought.

Information reaching us reveals, a top and seasoned local entrepreneur whose name we will not reveal for now, is heavily in debts and his chances of recovering are minimal. A source puts his outstanding bank loans in billions of shillings.

Highly placed sources say, even if he sells all his assets, he cannot be able to settle his outstanding bank loans.

The unfortunate part is that recently he used some of his prime buildings and properties to secure bank loans, which he is yet to clear. Taken together, he can best be described as ‘‘down and out’’

The current scenario is very unfortunate for this country.

The said entrepreneur has been one of the role models for the young and a great pillar of the country’s private sector.

Uganda has very few successful local entrepreneurs and their gradual demise means Uganda will now depend on foreign firms.

Unfortunately, sometimes-foreign firms are not dependable. Their investment in any given country is determined by factors behind profits.

When they feel their interests are threatened or are no longer viable, they can close leaving the economy in shambles.

Imagine if one day, telecom giant MTN Uganda chose to close business in Uganda, what would be the effect on the economy?

Either way, no country world over has ever developed at the back of foreign firms.

Frantic moves-selling all his properties

The said businessman finds himself in a very difficult situation-the banks from which he secured loans urgently need their money to balance off their books.

Now the seasoned entrepreneur has resorted to selling all his businesses and properties to clear the outstanding bank loans.

Newz Post saw an email the said businesses through his city brokers sent out to top city tycoons. The email has a list of properties up for sale. They include buildings, prime land and businesses.

So why is government (Ministry of Finance) silent as the pillars of the private sector are disappearing?

What can be done to save the remaining local entrepreneurs? What is the role private Sector Foundation and Uganda Manufacturers Association?

The media was awash with stories of city group Kwagalana spending money on ‘‘useless’’ things, can’t they team up to help a colleague?

These are some of questions that need urgent answers. The earlier we address them, the better for this country.

Dont miss part two, coming soon

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