New investors allowed entry into the sector must offer completely new financial services or take over existing banks. A deposit insurance fund with contributions from the GOU and banks has been put in place to protect depositors. The soundness of this fund is unknown. There are no foreign exchange controls affecting legitimate trade. General Financing Availability and Terms of Payment Finance is a major issue in Uganda.
Banks are generally weak and hesitant to lend.
In a survey by the Uganda Investment Authority completed in April 1995, the single most important impediment to investment in Uganda cited by investors was lack of finance. This is still a generalized sentiment. While general financing is available through commercial banks and credit institutions, the interest rate spread over deposit rate is extremely high. Time periods for loan repayment are extremely short. Types of Export Financing and Insurance Available Eximbank is open in Uganda for short to medium term loans.