Government to rescue Ndere Cultural Centre from Shs10 billion debt
Members of Ndere Troupe perform at a function. Ndere Centre, undoubtedly the troupe’s jewel in the crown found close to the northern bypass in Ntinda, a Kampala suburb, is up for auction over a Shs10b debt. PHOTO | FILE
What you need to know:
- Speaking to reporters on September 5, Mr Rwangyezi said, “We wanted to start this institute, but you can't run it without public funding. To sustain it, we needed resources, so we borrowed Shs6.8 billion. We chose UDB for its low interest rates, believing they were invested in Uganda's future development.”
Government is in the process of bailing out Ndere Troupe Ltd from the Shs10.5 billion debt that almost resulted in its auctioning.
ICT and National Guidance Minister, Dr Chris Baryomunsi told reporters in Kampala on Wednesday September 25 that the President has directed the Ministry of Finance to start the process of saving Ndere Cultural Centre.
“The government has agreed to come in and rescue Ndere Centre. The president has instructed the Ministry of Finance to work out mechanisms on how Ndere Centre can be supported,” Dr Baryomunsi.
He added, “However, I am not privy to the discussions whether to buy shares and if so, how many of them but I can confirm that government has committed to support Ndere Centre so that we don’t lose it since it is a strategic resource which provides a good service to Uganda. Therefore we shall support Ndere Centre and Mr Rwangyezi. It always happens where government makes strategic interventions to support the private sector, especially when they have financial trouble.”
The rescue came a few weeks after the proprietor of Ndere Troupe Ltd, Mr Stephen Rwangyezi cried out to President Museveni and other stakeholders and individuals to come to his rescue after the Uganda Development Bank (UDB) threatened to auction the troupe’s prime assets across the country.
The Shs10.5 billion loan accumulated from the Shs6.8 billion loan, which Mr Rwangyezi acquired in 2019 to expand the troupe.
Speaking to reporters on September 5, Mr Rwangyezi said, “We wanted to start this institute, but you can't run it without public funding. To sustain it, we needed resources, so we borrowed Shs6.8 billion. We chose UDB for its low interest rates, believing they were invested in Uganda's future development.”
He added, “However, we received the funds in 2019, 2020, and 2021—during the COVID pandemic. We had borrowed based on pre-COVID material prices.”
News of the troupe’s rescue came a day after city pastor Martin Ssempa posted on his official X (formerly Twitter) platform announcing that the government had accepted to buy the shares from the troupe.
Mr Sempa in the video footage explained that the First Deputy Prime Minister Ms Rebbeca Kadaga chaired a meeting at the Office of the Prime Minister where the government made the proclamations.
“Breaking: Government of Uganda agrees to buy shares in Ndere Cultural Centre in a deal to bail it out of the Sh4.6 billion debt which had accrued to now Sh10.8 billion due to the COVID19 lockdown of businesses and interest related charges by UG Devt Bank,” he said.
In 2019 Ndere Troupe Ltd acquired the said loan to diversify and expand its business horizons.
