The Role of Private Sector in The Development of Capital Markets A Case of Equity Bank (Katwe Branch) In Kampala District

This chapter contains background of the study, statement of the problem, purpose of the study, research objectives and questions, scope of the study and significance of the study. 1.2Background to the study Uganda has emerged over the past twenty years from economic decline, and repressive governments to macroeconomic stability, high growth in per capital income and inflation of about 7.5% (BOU 2007). Presently Uganda has witnessed economic growth in many sectors and there is considerable political freedom. Reforms initiated in the late 1980's and 1990's, put the economy on course for progress. Uganda recorded impressive growth rates during 1990s and investor confidence was restored. Government brought inflation under control and real private investment raised three fold from 1991/2 to 2003. ft.s the country moves from rehabilitation to growth and development, an efficient public service will play a critical role in development. The Poverty Eradication Action Plan (PEAP) defines the frame work through which the government provides public goods and services essential to economic growth and development. But as H.E. President Yoweri Museveni put it, "the provision of public goods and services alone is not a sufficient condition to enhance competitiveness and increase exports. We need to nurture the export and private sectors to be able to improve the country's ability to compete in international markets." (New Vision, Monday, July 11th 2005).