Finance Available for Ugandan Importers
UGANDA - Coronet Group has entered into partnerships with several banks to enable local business access to loans to cover their tax and freight costs.
“This product was inspired by the ever-increasing number of traders who have had their goods impounded over failure to meet import tax obligations and freight charges,” said Christian Baine, the Chief Executive Officer of Coronet.
Under the facility, Coronet arranges short-term funds to importers to meet their freight and tax obligations. The loan is available within four days and is repayable over a three-month period.
Mr. Baine said that: “In this arrangement, funds are remitted by a participating commercial bank directly to the Uganda Revenue Authority or a designated transporter where the trader has financial obligations to settle.
“What is required is just part of the goods representing two times the loan value, which are then placed under the custody of certified collateral managers until the importer repays the loan.”
Stanbic, Uganda Development and DCFU banks are already working in conjunction with Coronet to offer the service.
It is hoped that by encouraging importers Uganda can start to recover more readily from the economic downturn.
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