Living within our means for a better tomorrow.

Today, I was priviledged to attend a conference with the theme Power, Sex, and Money, the emphasis being on Money. Majority, if not all of the people in attendance were quite youthful, with some of them being students at university and others recently starting out in the job market.

The discussion at hand was very interesting and it involved the use of money in economic growth and development on a micro level. Very importantly though, it also encompassed how to make clean money that will last for years to come, in the process leading to progressive and sustainable macro economic development.

One of the guest speakers was Mr. Amos Wekesa, founder, Great Lakes Safaris ltd who also happens to be my mentor. He emphasised the importance of saving and living not only within, but also below our means.

He argued that this would potentially reduce the amount of debt that many people usually accumulate from unecessary liabilities like luxurious cars. These spending habits in many cases also result in the vicious cycle of borrowing. However; “When you save money, one day that money will save you.” Amos Wekesa added.

We should always endeavor to live within our means, and use the money that we have to make a positive and significant difference in our economy.

Until next time…

Crane Bank’s takeover by DFCU Bank.

The Governor Bank Of Uganda (B.O.U), Tumusime Mutebile, in a letter dated 27th Jan 2017 stated that DFCU Bank  ltd had taken over the control and management of all assets and liabilities of Crane Bank ltd.

This didn’t come as a surprise to many since Crane Bank had as of 20th Oct 2016 been declared insolvent by the Central Bank (B.O.U). It was found to be undercapitalized with its liabilities grossly exceeding its assets.

This undercapitalization was found to be mainly due to the presence of Non-Performing loans. Many people were using short-term loans to finance long-term investments like building houses for rent thus failing to pay back these loans in time.

Nonetheless, the Central Bank ought to be applauded for doing a good job in making sure that depositors didn’t lose their money and the financial sector was kept relatively stable.The Governor B.O.U said;  “B.O.U reassures the public that it will continue to protect depositors’ interests and maintain the stability of the financial sector.”

However, inspite of this assurance, some Economists predict that Crane Bank’s collapse could have dire effects on Uganda’s economy with foreign investors leaving the Ugandan market.

Will people also resort to keeping their money under pillows and mattresses? …your guess is as good as mine.