The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Financial and accounting professionals have tipped entrepreneurs on improved transparency, environment and human rights as key to enabling access to needed affordable and long-term capital.
This comes as sources of patient capital seem to be dwindling and becoming more selective, hence difficult to acquire, but the experts say that money is as available as ever on the international market, only that investors are increasingly becoming mindful of the need for sustainability.
CPA Charles Lutimba, the Director of Standards at the Institute of Certified Public Accountants of Uganda (ICPAU), says that businesses will continuously operate in increasingly uncertain times due to the need to guard against negative effects of climate change and protect the environment, care for the people around as well as being open about their operations.
“The world is facing climate tensions, shifting investor priorities, regulatory changes and deep geopolitical uncertainty,” Lutimba said, adding that this year’s theme centres around challenging organisations to report with resilience and relevance.
However, he says that unfortunately, sustainability measures are being resisted by governments in some parts of the globe.
He was speaking at the inauguration of the 2025 Financial Reporting Awards, Lutimba said, “Entities must now ask, how do we balance profitability, competitiveness, and community concerns & how is that balance communicated to stakeholders?”
The theme of this year’s awards is “Sustainability Practice and Reporting in Uncertain Global Times,” which is a reflection of the constantly and rapidly changing business environment, caused by interstate conflicts, trade wars, climate change and others.
The global realignment process that was influenced by the COVID19 outbreak in 2019/2020, was made worse by the breakout of war between Russia and Ukraine, forcing more countries to focus on nationalist and inward-looking policies, which included restricting capital flows to other countries.
The conflict between Israel and Palestine, which has now spread to other Middle East including Iran, makes matters worse.
John Were, the Chief Relations Officer at the Uganda Securities Exchange, says that investors today are not just looking at how much profit a company is making, but are more concerned with sustainability, board diversity and environmental impact.
Were says that the Awards help entities build the discipline of transparency, which is essential for raising capital in today’s market, by enhancing sustainability reporting.
He, however, notes that enterprises in Uganda are predominantly family-owned and that the families want to retain full control of the business, hence missing out on opportunities that come with opening up to the stock market.
He says the stock markets enable instilling discipline in operations, including reporting, which is vital for attracting foreign capital.
His concerns were also echoed by Lyn Tukei, Communications and Public Relations head at the Capital Markets Authority, who says there are several sources of capital, both local and international, including Green bonds, Shariah-compliant instruments and private equity.
However, she says that accessing these requires discipline in operations and reporting, which are rare in family-owned businesses. She says that if a business does not report its finances transparently, it risks being invisible to long-term investors.
CPA Stephen Ineget, the Chairperson of the Financial Reporting Awards Committee, stresses that reporting is no longer about showing financial results, by the sustainability of the business, which is increasingly becoming the focus of investors.
According to him, strong financial reporting is the bedrock of excellent governance, investor confidence and customer trust, which are essential for any organisation seeking to raise money for capital.
Submissions for the awards commenced two weeks ago and will remain open until September 30, 2025, at their Kamwokya offices or online through the ICPAU website.
Targeted entities include the Public sector, Private sector, NGOs, SMEs and Financial institutions.
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