KAMPALA – The renowned Ndere Cultural Centre, a beacon of African heritage and culture, is on the brink of being sold due to a staggering Shs10.5 billion loan debt. Founded by Stephen Rwangyezi in 1999, the centre has been a symbol of Uganda’s rich cultural diversity, showcasing traditional music, dance, food, and architecture.
Rwangyezi, a celebrated actor, musician, and cultural enthusiast, established the centre to preserve and promote Africa’s fading heritage. Over the years, he has expanded his portfolio, acquiring more land in Wakiso and Kisoro districts, including a hotel to accommodate gorilla tourists.
“The main reason why I started Ndere was our African heritage was sinking; where music, dance, food, dressing, architecture, name it, because, from the colonial times, the trajectory was to destroy and confidence of an African.”
However, his vision was disrupted when he secured a Shs6.8 billion loan from the Uganda Development Bank (UDB) in December 2019. The loan was intended to further expand his projects, but fate had other plans. Two months later, President Yoweri Museveni announced a total business shutdown due to the COVID-19 pandemic, rendering Rwangyezi unable to utilize the funds for over three years.
Despite the unprecedented circumstances, the bank continued to levy interest, causing the loan to balloon to Shs10.5 billion. Rwangyezi has since pleaded with the bank for an additional grace period, but his requests have fallen on deaf ears. The bank has issued a sale notice, threatening to auction off the centre.
“Please save Ndere. We are not saying that we shouldn’t pay, all we are asking for is a bit of time. The last letter we put when we received a sale notice, we requested only one year in which we would look for investors to buy equity through which we could raise the money to repay the loan.”
Rwangyezi is now appealing to President Museveni for a financial bailout or intervention to persuade the bank to grant him more time. He believes that his Kisoro hotel, which has recently commenced operations, can generate enough revenue to repay the loan if given the opportunity.
Debt recovery lawyer Kakembo Denis advises debtors to consider liquidating some properties before banks initiate a forced sale. He notes that loan restructuring is an option, but it cannot be done indefinitely. Rwangyezi values the 21-hectare Ndere Cultural Centre at Shs120 billion, significantly higher than the bank’s initial valuation of Shs33 billion.
“Sometimes you may have to make difficult decisions. If you have like 20 properties all mortgaged to the Bank, rather than waiting for the bank to come, you could choose to liquidate so that you remain with core properties to keep your business afloat.”
The potential sale of the centre has sparked widespread concern among cultural enthusiasts, artists, and the general public. The fate of Ndere Cultural Centre hangs in the balance, as Uganda stands to lose a vital part of its cultural heritage.
