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Ministry of Finance Denies Commitment to Bail Out Ndere Cultural Centre Amid Mounting Debt Crisis
The Ministry of Finance, Planning, and Economic Development has officially refuted reports suggesting it pledged to bail out the Ndere Cultural Centre from its growing indebtedness, despite Uganda Development Bank (UDBL) affirming government commitment to settle the loan in 2024.
Ndere Cultural Centre, established in 1984 as the Ndere Troupe, has evolved into Uganda’s premier cultural tourism and conservation hub with facilities across the country. However, the institution faces an existential threat due to an unpaid loan that now exceeds Sh10 billion.
The trouble began in 2019 when Ndere secured a Sh6.8 billion loan from UDBL at a 10 per cent annual interest rate aimed at expanding its cultural and tourism projects, including the Obuntu Cuddle Resort in Bbira and Obuntu Tourist Lodge in Kisoro. Unfortunately, disbursement of the loan only started in mid-2020, months after the onset of the COVID-19 lockdowns that halted entertainment and tourism activities nationwide, severely impacting Ndere’s revenue streams.
Despite initial repayments of Sh22 million monthly, accumulating interest has pushed monthly payments to Sh30 million, and the principal debt ballooned to approximately Sh10.8 billion. By August 2024, UDBL issued a formal notice of intent to auction Ndere’s assets due to persistent non-payment.
In September 2024, Ndere’s management, led by founder Stephen Rwangyezi, appealed to the government for financial intervention. Reports emerged of a government commitment following a meeting at the Office of the Prime Minister, and Ndere publicly announced that the government would purchase shares in the cultural centre to settle the debt by December 2024.
However, nearly a year later, UDBL has stated there has been no progress on the bailout or a viable repayment plan. In a recent letter, the bank demanded that Ndere provide a concrete settlement timetable within seven days or face auction of its assets to recover the debt. The letter expressed disappointment over the lack of communication from the Ministry of Finance regarding the promised bailout.
Contradicting the bank’s assertions, the Ministry of Finance has denied ever committing to a bailout plan, leaving Ndere’s future uncertain. Efforts to reach Ndere’s founder Stephen Rwangyezi and campaign leader Martin Ssempa for comment were unsuccessful.
Ndere Cultural Centre’s predicament underscores the wider challenges faced by Uganda’s cultural and tourism sectors in recovering from the economic fallout of the pandemic. As the countdown to the auction looms, stakeholders await clarity on whether government intervention will materialize to save this iconic institution.
Background:
Founded in 1984, Ndere has long been a symbol of Ugandan culture and artistic expression. The centre’s expansion ambitions led to the 2019 loan from UDBL, but delays in fund disbursement combined with pandemic restrictions have crippled its ability to service the debt. With auction notices issued and no clear rescue plan in place, the fate of Ndere hangs in the balance.
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