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Workspace development at Mbarara |
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Workspace |
Uganda |
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In 2002, the Uganda Gatsby Trust and 40
businesses in the Mbarara Gatsby Club bought a site of
around 12 acres on which they hoped to build small business
units for sale. |
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With a little support, they
developed ambitious plans to build 72
units, each of 60m2, in six blocks of 12 units, to be sold to
members and to other businesses in Mbarara. IGA helped them develop their
business plan, link them
up with a UK partner and secure funding from DFID's Business Linkages
Challenge Fund as well as assisting with extending the
leasehold of the land and preparing the business plan which secured
considerable additional funding by way of a bank loan |
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Subsequent progress |
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By June 2007, the
construction of the Mbarara Business Park was well on its way with five
out of the six blocks completed. The sixth had been started and
completion was on schedule for end of September 2007. It was becoming
apparent, however, that the members were not repaying their loans as
fast as anticipated and that the project was going to experience cash
flow problems. |
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The Board suggested
that the company sell one or more blocks as a whole to raise
some capital. This opportunity was advertised, but the response was
not good. However, Gen. Salim Saleh, Minister of State for
Microfinance (and brother ofthe President) saw the advert and remembered a
Presidential Directive of February 2007 requiring that 20 Business
Parks be constructed round the country. He admitted that “until we
saw the Gatsby advert, we had no clue how to go about HE's programme”.
He requested that we meet after CHOGM to work out a programme of
collaboration to set up 20 Parks on the Mbarara model but on a larger
scale. The President mentioned Mbarara in his new year address and
Uganda Gatsby Trust has since submitted a proposal.<
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In brief, the Government will advance funds to UGT
which will enable them to offer more affordable mortgages to the
purchasers of the units and UGT will be contracted to develop a
further 19 parks over the next two years. 10 should be embarked upon
during 2008. |
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