The Ugandan economy is not attracting anywhere near enough private investment in the traded goods sectors in which it has a comparative advantage on world markets and which could, therefore, drive export led growth; sectors such as commercial agriculture, agro-processing, light industry and tourism. The lack of private investment in these sectors is also reflected in the relative paucity of bank financing for them.
I am not trying to claim that a shortage of bank lending is the only binding constraint to higher investment in these sectors, because there are clearly many other serious constraints; weak business and technological skills, the high costs of doing business, poor transport logistics and infrastructure, for example.