The Ugandan government is stepping in to save Ndere Troupe Ltd from financial collapse, as the cultural center faces a Shs10.5 billion debt that nearly resulted in the auctioning of its assets. This move follows a directive from President Yoweri Museveni, ordering the Ministry of Finance to initiate the process of bailing out the renowned Ndere Cultural Centre.
Dr Chris Baryomunsi, the Minister of ICT and National Guidance, confirmed the government’s commitment during a press briefing in Kampala on Wednesday, September 25. “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,” Baryomunsi said.
While details of the bailout process remain unclear, particularly whether the government will acquire shares in the center, Dr. Baryomunsi reassured the public that steps are being taken to preserve the strategic resource. “I am not privy to the discussions on whether to buy shares and if so, how many of them, but I can confirm that the government has committed to support Ndere Centre so that we don’t lose it. It always happens where the government makes strategic interventions to support the private sector, especially when they face financial trouble.”
The bailout comes shortly after Ndere Troupe Ltd’s founder, Mr. Stephen Rwangyezi, publicly appealed for help from President Museveni and other stakeholders. The troupe, which had taken a Shs6.8 billion loan from the Uganda Development Bank (UDB) in 2019 to fund expansion, found itself in debt after the COVID-19 pandemic disrupted operations. The debt has since accumulated to Shs10.5 billion due to interest and related charges.
“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,” Rwangyezi explained on September 5. He added that the financial strain was exacerbated by the timing of the loan, which coincided with the COVID pandemic and skyrocketing material costs.
News of the government’s intervention was further amplified by city pastor Martin Ssempa, who took to social media to announce the development. In a post on his official X (formerly Twitter) account, Ssempa revealed that the government had agreed to buy shares in Ndere Cultural Centre to alleviate its debt burden.
“Breaking: Government of Uganda agrees to buy shares in Ndere Cultural Centre in a deal to bail it out of the Shs10.8 billion debt due to the COVID-19 lockdown of businesses and interest-related charges by Uganda Development Bank,” Ssempa shared.
The bailout is seen as a strategic move to preserve Ndere Troupe, a cornerstone of Uganda’s cultural heritage, which has long promoted Ugandan art, music, and dance. The next steps will involve the Ministry of Finance working out the details of the rescue plan, which is expected to secure the future of the center and its contributions to the country’s cultural sector.
Don’t want to miss out on any story? For updates on all Sqoop stories, follow this link on Telegram: https://t.me/Sqoop
