Does Ndere Cultural Center deserve a bailout or is this the beginning of a “me-too” wave for businesses?

When the news broke about the financial woes facing Ndere Cultural Center, my initial reaction was that this is a case where the government should step in and use taxpayers’ money to help.

After all, Ndere plays a vital role in preserving and showcasing Ugandan culture, serving as a beacon of heritage and cultural pride in Central Uganda. It’s a place many of us have visited to enjoy quality cultural entertainment or to introduce foreign guests to our rich and diverse traditions in a welcoming environment.

Given its positive impact on Uganda’s cultural landscape, a bailout for Ndere Cultural Center might seem more justified than the controversial bailouts given to giant businesses in the past. However, upon further reflection, I wonder if we are entering a new era where businesses line up to tap into the national treasury for relief packages. Are we witnessing a “Me-Too” wave among businesses seeking taxpayer-funded support?

This raises a critical question; is Uganda’s culture of bailouts sustainable? Should businesses like Ndere Cultural Center, which have not serviced their loans, receive more financial support, or is this just another case of private entities dodging their responsibilities and expecting taxpayers to foot the bill?

While it is true that many businesses in Uganda, especially in the entertainment sector, have struggled post-pandemic, why is the owner of Ndere Cultural Center now turning to President Museveni for rescue after years of financial success? Why are calls for bailouts becoming louder across the board? Can ordinary Ugandans, who are already grappling with inadequate public services and other pressing issues, afford to bear the burden of rescuing more and more businesses?

To understand the situation better, we must look at the circumstances surrounding this matter. Before the pandemic, Ndere Cultural Center was a success story—a vibrant hub attracting locals and tourists alike with its performances celebrating Ugandan culture. When COVID-19 struck in 2019, the owner sought financial assistance from the Uganda Development Bank (UDB), a seemingly prudent move as lockdowns decimated revenue streams. However, as the pandemic dragged on, the center’s financial troubles deepened.

Sources indicate that Ndere’s owner borrowed more funds from UDB and eventually renegotiated the loan. While UDB restructured the loan to provide support, the loan itself remained unserviced. Despite several attempts by UDB to sustain the center, no payments were made, leading to a financial crisis.

The call for a bailout by Ndere Cultural Center comes at a time when the Ugandan government has been bailing out several businesses affected by the pandemic. Yet, the economy is already struggling with high inflation, mounting debt, and stretched resources. Businesses across different sectors have lobbied for incentives, tax relief, and financial support, raising fundamental questions: How far should the government go to support private enterprises? And at what cost to the taxpayer?

The case of Ndere highlights a troubling trend where businesses, after enjoying periods of success, turn to the government for salvation when times get tough. While the pandemic undeniably wreaked havoc on industries worldwide, the expectation that taxpayers should continuously bail out private entities is increasingly problematic.

Are businesses exploiting the system?

The demand for bailouts isn’t limited to Ndere. Across Uganda, many businesses are calling for government intervention, looking to benefit from taxpayer-funded relief packages. But should businesses that fail to service their loans still be entitled to financial assistance?

Critics argue that Uganda’s economy—already burdened by high taxes and mounting public debt—cannot sustain this culture of bailouts. If politicians have been known to access the consolidated fund with little accountability, are struggling businesses now attempting the same, taking advantage of taxpayer money without fulfilling their obligations?

While it’s understandable that businesses may seek relief amid an oppressive tax regime, there is a fine line between genuine need and opportunistic exploitation. Uganda’s economy is still reeling from the pandemic, with the government borrowing heavily to stay afloat. Meanwhile, ordinary citizens face high taxes and limited public services. If businesses continue to lobby for bailouts without accountability, the long-term economic impact could be severe.

Time for accountability

The plea from Ndere Cultural Center is a stark reminder that while businesses are essential to the economy, they must manage their affairs effectively. The government’s role should not be to act as a safety net for poor financial planning, especially at the taxpayer’s expense.

As Uganda deals with the economic fallout of COVID-19, it’s time to rethink the relationship between businesses and the state. Bailouts should not become the new normal, and businesses failing to meet their obligations must be held accountable. The taxpayer’s pot is not bottomless, and we must address the growing culture of exploitation.