bank of uganda remarks by louis kasekende ( phd. ) deputy governor, bank of uganda at the graduation ceremony of the pioneer class of the “ orient bank ’ s financial literacy programme ” sheraton hotel kampala ; april 20, 2017 the principal makerere university business school ( mubs ) the board of directors and senior management of orient bank ltd. members of the private sector and our graduates, distinguished guests, ladies and gentlemen, it is a great honour to preside over the first graduation ceremony of the “ orient business academy ”. before i begin, let me convey the apologies of the governor, prof emmanuel tumusiime - mutebile, who is currently in washington representing uganda at the spring meetings of the imf and world bank. this academy, which i was privileged to launch in august 2016, is an initiative of orient bank and mubs. the main objective of the academy is to equip micro and small enterprises with financial resource management skills and knowledge. as such it complements the financial inclusion agenda of the bank of uganda. i wish to congratulate all the graduates of the orient bank financial literacy programme for having successfully completed their training our economy is dominated by the micro and small scale business sector, which ( including smallholder farming ) provides employment for more than 90 percent of the labour force. however, micro and small enterprises face major barriers to growth. the vast majority of these enterprises remain very small and most struggle to survive let alone expand. a lack of essential business skills on the part of entrepreneurs is one of the impediments to the growth of micro and small scale businesses. a critical requirement for the success of a micro or small enterprise is that it should be able to generate positive cash flows at all times, but this is often poorly understood by entrepreneurs. the paucity of business skills extends to the proper use of finance. if an entrepreneur is to contract a loan to finance his or her business, it is essential that the entrepreneur understands clearly how the finance will be used to add value to the business, so that he or she will be able to service the loan in full and also increase the profits of the business. if this is not the case, the loan simply becomes a burden on the business and may contribute to its collapse. as such, basic financial literacy is essential if entrepreneurs are to be able to use finance constructively. they must be able to work out how much profit they earn from their businesses, and estimate how much additional

the same level of the late 1980s. 1. diaspora as fundamental link the role of the uganda diaspora is vividly evident in the remittances into uganda which as a source of foreign exchange as well as resources for consumption and investment have grown steadily in recent years. for instance, in 1998 remittances were estimated at us $ 165 million, equivalent to 2. 6 percent of gdp. in 2012, this had risen to us $ 910 million equivalent to 4. 3 percent of gdp during 2012. the average remittances per year between 2008 and 2012 amounted to about us $ 800 million, which exceeds official aid which averaged us $ 538 million but equivalent to foreign direct investment ( fdi ) in uganda. in addition, remittances have been a more stable source of capital than private capital. remittances have had a direct impact on poverty reduction because they flow directly to households. according to the uganda bureau of statistics and bou inward personal transfers report of 2012, the recipient households use remittances to support general household expenses and education ( 81 percent was used on consumption compared to 16. 9 percent that was used for non - consumption purposes and 2. 3 percent that was transferred to other households ). however, remittances have not played a major role beyond supporting household welfare yet the ugandan diaspora could play in enhancing and enabling fdi into uganda. the ugandan diaspora community have the potential to invest in its own right, but also has the knowledge, expertise and experience that could be deployed in enabling private sector investment. however, so far remittances have supported household welfare with little if any in direct investments in uganda. ugandan diaspora can play an important role in the economic development of uganda. beyond sending remittances, they can also promote trade and public - private partnership and fdi, create businesses and spur entrepreneurship and transfer knowledge and skills. in addition, the uganda diaspora executives working for multinationals abroad can play a role in influencing investment decisions to outsource operations to firms in uganda. the ugandan diasporas ’ skills could also be mobilized to provide managerial and knowledge expertise to firms and r & d laboratories in uganda. diasporas can also help spread ideas. worldwide, many of the emerging world's brightest minds are educated at western universities. an increasing number go home, taking with them both knowledge and contacts. for example, indian computer scientists in bangalore bounce ideas constantly off their indian friends in silicon valley.