Lango Entrepreneurs Challenged to Master Leadership and Finance to Curb Loan Defaults

LCC TV NEWS

LIRA CITY, Uganda – Entrepreneurs in the Lango Sub-region have been called upon to adopt robust leadership strategies, rigorous financial management, and customer-centric practices to secure the long-term sustainability of their enterprises.

The appeal was made by Benson Akenda, the Regional Officer for Northern Uganda at Enterprise Uganda, during a business empowerment workshop held at the Margarita Palace Hotel in Lira City. The event was jointly organized by Enterprise Uganda and ABSA Bank Uganda as part of a broader initiative to bolster the local private sector.

Addressing a gathering of local business owners, Akenda outlined five fundamental pillars that he said are critical for building resilient businesses. These include strong leadership; the recruitment of competent and committed staff; the establishment of efficient operational systems; the delivery of quality customer care; and sound financial management.

Akenda highlighted a recurring pitfall that continues to undermine local enterprises, noting that many businesses collapse due to a lack of planning. He pointed specifically to the misuse of credit facilities, where owners secure loans without adequate business knowledge or a clear repayment strategy, leading to unsustainable debt and eventual closure.

“To grow, you must lead effectively and manage your resources wisely. A loan without a plan is a recipe for failure,” Akenda stated.

Echoing these sentiments, Joshua Oder, the Manager of ABSA Bank’s Lira City Branch, reaffirmed the bank’s long-term commitment to enterprise development. Oder explained that the workshop was designed to equip entrepreneurs with the necessary skills to scale their operations and improve productivity.

“There are immense opportunities here in Lango and across Uganda. We want business owners to enhance their competitiveness and expand their enterprises responsibly,” Oder said.

Ivan Kirumira, Trade and Sales Manager at ABSA Bank Lira, highlighted the availability of affordable business financing options with flexible lending arrangements tailored to the specific needs of entrepreneurs. However, Kirumira raised a red flag regarding the high rate of loan defaults in the region. He revealed that nearly 80% of some borrowers fail to honor their repayment agreements, a trend that continues to stifle access to credit for the wider business community.

“This default rate is alarming. It limits our ability to extend credit to other entrepreneurs who need it,” Kirumira noted.

In her remarks, Stella Atim, Head of Enterprise and Product Partners at ABSA Bank Uganda, emphasized that successful entrepreneurship transcends capital. She stressed the importance of dedication, innovation, and maintaining a long-term vision focused on creating value for both business owners and the broader community.

Meanwhile, Susan Auma, Supervisor for Taxes and Payment Revenue at the Uganda Registration Services Bureau (URSB) Lira Branch, urged entrepreneurs to formalize their businesses through official registration. Auma explained that registration—which falls under the Ministry of Justice and Constitutional Affairs—offers legal protection and requires entrepreneurs to select unique business names, thereby securing their brand identity and operational legitimacy.

About ABSA Bank

ABSA Bank, established in 1927 and headquartered in Johannesburg, South Africa, stands as one of Africa’s premier financial institutions. As it approaches its 99th year of operation, the bank remains steadfast in its mission to foster entrepreneurship and support sustainable business development across the continent.