French oil major Total S.A has said it will finance the development of the $4b (Shs13 trillion) crude oil export pipeline from Uganda’s Albertine Graben to Tanzania’s Tanga port at the Indian Ocean.Mr Javier Rielo, the Total East Africa vice president, assured Tanzanian President John Magufuli that “the company will begin construction of the pipeline project to transport oil from Uganda to Tanga as soon as possible, for funds to implement the project exist.”According to a statement by the Tanzanian presidency, the two held talks on Monday at the State House in Dar es Salaam.Mr Rielo, said, the statement indicated that the company “intended to spend nearly $4b on the project. Read more

Barclays Bank of Uganda Ltd has assured their customers that they will be not affected by changes of its main shareholder Barclays Africa Group Ltd (BAGL).BAGL is the principle shareholder for Barclays Bank Uganda Ltd. The UK-based Barclays PLC which owns 62.3% of BAGL has announced that it is reducing its majority interests to minority position in BAGCL. The bank wants to refocus on its core U.K. and U.S. markets and to meet banking regulatory requirements of the UK. The regulatory requirements have proved to be a challenge to the London based firm.Rakesh Jha, managing director Barclays Uganda told journalists in Kampala  that there was no direct relationship between the London based firm, Barclays PLC and Barclays Bank Uganda Ltd.Read more 

Traders under their umbrella body Kampala City Traders Association (KACITA) have given Kampala Capital City Authority (KCCA) to evict vendors from the city streets or they take industrial action.“We have written to KCCA, Ministry of Trade, Industry and Cooperatives and the Inspector General of Police over the matter. If it elapses without any action taken against street vendors, we shall summon the business community to make a resolution on what action should be taken” KACITA chairperson Everest Kayondo told New Vision in a telephone interview. Kayondo was not sure of the resolution that they will take but said that they are most likely to move their merchandise to the middle of the streets and block all the traffic.There had been order in the city but both the festive season and the general elections period saw a surge in the number of street vendors transacting business in the city. Read more

What does it take for an East African and a Ugandan in particular to get such a big post in Sabc? 

One has got to prepare academically. I went through Makerere University and later upgraded through Universities in South Africa. The will to work. As a foreigner you have to stretch yourself more unlike the locals in order to compete. It’s not because of hard work per say but if you have lived amongst South Africans, work and studied with them; they are willing to give you a chance. I have been in South Africa since 1996 but before that I was in Lesotho for three-years.For East Africans who would want to work in South Africa; what opportunities can be exploited?South Africa has a lot of investment opportunities East Africans and Ugandans in particular can invest in. A case in point is tourism. You can be able to buy a game lodge in South African at a less cost compared to what it would cost for a plot in Kololo rated at $3 million (Shs10 billion). Read more

Ugandan farmers want the United Nations Development Programme (UNDP) to cut ties with Kenya’s Bidco and investigate it for alleged malpractices against Ugandan, Kenyan and Tanzanian growers.Bugala Farmers’ Association opposes Bidco Africa’s membership of the Business Call to Action (BCtA) hosted by UNDP. The firm joined the call committing to create 60,000 jobs across the region by 2019.The Business Call to Action — an alliance of six donors including UNDP) — challenges companies to develop innovative business models that achieve commercial success and development outcomes.“For those who know the real business practices of Bidco Africa and its CEO Vimal Shah, the embrace by BCtA of Bidco Africa is a tragedy for smallholder farmers and a major stain on the reputation of UNDP,” says the petition delivered to UNDP . Read more

Slow market activity in the run up to elections is partly to blame for low foreign inflow into the country. Foreign Direct Investment (FDI) inflow into Uganda declined by $200 million (about Shs687 billion) as a result of difficult global environment which hit the world inform of economic slowdown and the just concluded general elections. The FDI, has for nearly four decades, become an important avenue for economic growth and development in developing countries given the potential role they can play in accelerating growth and economic transformation. Developing countries, including Uganda, are strongly interested in attracting FDIs.The executive director research Bank of Uganda, Dr Adam Mugume said, FDI inflow into Uganda was estimated at $1.2 billion (about Shs4.122 trillion).“FDI to Uganda is estimated to have dropped to $1 billion (about Shs3.435 trillion) due to weakness in the global economy,” he said. Read more

The much-anticipated sale of Ugandan sugar in the country has flopped due to lack of sugar surpluses in the neighbouring state forcing Kenyan authorities to withdraw import licences.Ugandan sugar millers have been hit by a shortage that has seen leading factory Kakira Sugar Works produce less than 100,000 tonnes out of the projected 180,000 tonnes.Kenya’s Sugar Directorate said it has cancelled a number of permits issued to some traders after they failed to secure sugar from Uganda within the stipulated time.The permit normally allows traders to import sugar, failure to which it is revoked. However, a trader can seek extension if they provide valid reasons.“It is true that there is a shortage of sugar in Uganda and at the moment traders are not bringing in any stocks from the country,” said head of the directorate Andrew Osodo. Read more

Uchumi Supermarkets has asked suppliers of its ill-fated Uganda to make claims as it winds up operations in the market.Kenya’s oldest major retailer told suppliers to lodge claims  ahead of bankruptcy filings at the Kampala High Court.“To all creditors…. You are hereby required to file a reply to the petition from the date of service of the petition on you in the matter prescribed under law.“Should you fail to file a reply to the petition on or before the date, the petitioner may proceed with the hearing of the petition,” said Uchumi in an advert. Uchumi owes suppliers, landlords and employees USh8.8 billion or Sh265 million.Read more

Cynthia Mpanga, the banks head of corporate affairs, brand and marketing declined to divulge the cost of the upgrades but said the process would take to complete. The initial ATMs have been in use. Mpanga says the new ATMs will be faster, more efficient, multi- functional and secure. “We are also doing our utmost to minimise any inconvenience to our clients by phasing out the old ATMs and working on 3 to 4 ATMS ,” she said. “At locations where we have more than one ATM, we only upgrade one and leave the other operational and also work on ATMs in spread out geographical locations to ensure we minimize impact on a particular community or area,” she adds. Read more

The World Bank has projected the global economy to grow by 2.9 per cent in  advanced economies gain speed to drive growth in other regions of the world.This is slightly higher compared to 2.4 per cent growth rate. The high global growth rate, according to the WB, will support economic growth in Least Developing Countries such as Uganda in form of a pick in demand for commodity exports and Foreign Direct Investment, among other benefits of high growth.During the release of its Global Economic Prospects (GEP) report for Washington DC, the World Bank said weak growth among major emerging markets will weigh on global growth. Read more 

Hared Petroleum Limited, the company that government contracted to restock Uganda’s strategic fuel reserves, has so far not lived up to expectations.Though the concession provided that it stocks and maintains 12 million cubic metres of fuel at the Jinja–based facility, Hared has 605,000 cubic metres.“I noted during inspection there was only 274,000 litres of petrol and 331,000 litres of diesel,” said Auditor General John Muwanga in the Annual Report of the Auditor General.“My assessment is that the stock build up is not being achieved and, consequently, the national petroleum reserves are not serving the purpose for which they were established.” Read more

Government has been asked to promote manufacturing among the youth interested in entrepreneurship as a way of creating employment.The call was made by the manager, Food Technology Business Incubation at Makerere University, Prof.William Kyamuhangire in a meeting aimed at tackling challenges of unemployment among the youth.He said that majority of the youth entrepreneurs are into buying and selling products from countries like China, which limits their creativity."Government needs to go in and encourage them  to move into manufacturing ,if you buy a commodity from china, and sell in Uganda, few people will be employed but if you start manufacturing products here, so many will be employed  and that is what we want to see," said Kyamuhangire. Read more

The depreciation of the Uganda Shilling against the US dollar and increment in power tariffs have seen the country register increase in its annual average inflation rate of 5.2 per cent compared to 4.3 recorded. Uganda’s annual average inflation rate closed at 5.5 per cent attributed to high inflationary pressure. Uganda Bureau of Statistics (Ubos) said a weak Shilling and high power tariffs implied that the general public was faced with the problem of mobilising more money to be able to pay for goods and services for their daily livelihood. Ubos director macroeconomic statistics Chris N. Mukiza, while releasing the Consumer Price Index (CPI), at Statistics House in Kampala, said: “The key factors that drove inflation were depreciation of the Shilling against the US dollar and the annual energy, fuel and utilities (EFU) due to increase in electricity tariff,” he said. Read more

Uganda Breweries Limited (UBL) and Buganda Kingdom, through Majestic Brands, the investment arm of the kingdom, have partnered to brew a new beer brand called Ngule. The beer is made from cassava and sorghum all of which are sourced locally from Buganda and Uganda. Ngule’s recommended retail price is Shs1,500. UBL and the kingdom have a revenue sharing agreement. Unveiling Ngule at the Enkuuka- Buganda’s party held in Lubiri, Mengo, the Katikkiro of Buganda, Mr Charles Peter Mayiga, hailed Ngule as a “job-making” and “wealth-creating” innovation by the kingdom.“Ngule beer is an innovation (obuyiiya) which is a key agenda on Buganda’s strategic plan. The creation of Ngule will significantly contribute to the kingdom’s income and create jobs for people in Buganda and elsewhere, from distributors to sellers as well as farmers in Buganda and outside Buganda that will grow the beer’s ingredients mainly cassava,” he said. Read more

Importers and exporters using the Northern Corridor have protested the passing of a Bill by the Mombasa County in Kenya that seeks to allow the county to collect port revenues.They say the Mombasa County Port Authority (MCPA) Bill passed, will impose double taxation on business transactions on the transit route that links Uganda, Rwanda and Burundi with the port.The Bill, awaiting assent by Governor Hassan Joho, seeks to create the County Port Authority, headed by a chief executive, to manage the port and set up an electronic Advanced Shipment Information System to monitor cargo and help in revenue collection.Many businesses have termed the Bill unconstitutional and asked the governor not to assent to it. Read more

President Yoweri Museveni has said there is no need to liberalise the pension sector because NSSF is still performing well. There are some pensioners who want Parliament to pass a Bill which will liberalise the sector to enable workers have the liberty to save with a pension body of their choice. However, the President while officiating at ceremony of National Social Security Fund’s (NSSF) operation, said Uganda's economy is still growing and the workers’ money cannot be split between different bodies. “I have never opposed or supported bringing in private firms. NSSF needs to have one good advantage; we have this big volume of money which is available for any useful capital development project. So unless it is being mismanaged then bringing in private players makes sense,” Museveni said. If NSSF does some good work by selecting some of these crucial investment sectors, then they will be strengthening their position. Concentration is better than dispersal,” he added.Read more

Restrictions faced by traders moving their maize across eastern and southern African markets are set to ease after six countries agreed to recognise one another’s quality certificates.The Comesa Mutual Recognition Framework (C-MRF) signed in Kampala, Uganda, seeks to eliminate multiple testing by both the exporting and importing countries.The six comprise Kenya, Malawi, Rwanda, Uganda, Zambia and Zimbabwe where the framework will be piloted. Kenya mainly imports its maize from Uganda, Zambia and Malawi.For conformity assessment, the C-MRF will be adopted by the member states through Mutual Recognition Agreements (MRAs).Among the C-MRF key components are common grading criteria, proficiency testing for aflatoxin analysis and a risk-based sampling protocol.Read more

The National Environment Management Authority (Nema) has received Shs415.6m to facilitate data finding on mercury use and releases into the environment and its associated impact.This, according to Mr Alex Winyi, a senior environmental assessment officer Nema (mercury desk), will also pave way for the ratification and eventual implementation of the Minamata Convention on Mercury.The Global Environment Facility (DGEF), through the United Nations Environment Programme (UNEP) and Ground Work-South Africa provided the funding.According to Mr Winyi, the funding will help the authority conduct a national and ministerial sectors assessments on the challenges and opportunities to implement the convention.

“Mercury is a toxic chemical that requires sound management to minimise its impacts on our health and the environment,” Mr Winyi, said assessment programme at the inception workshop in Kampala. Read more

In an effort to reduce poverty among people living in rural areas and increase household income, the South Korean government has donated $2.5 million (about Shs8.7 billion) to communities in Mpigi District.The pilot project is code-named "Saemaul Undong model villages".Some of the beneficiary villages include Lwaweeba, Lukonge, Tiribogo, Kololo, Kiwuumu A, Kumbya and Nsaamu, among others.Speaking during the launch of the project at Kammengo playgrounds in Mpigi District, the South Korean ambassador to Uganda, Mr Park Jong Dae, said the objective of the project is to support Uganda achieve its strategic goal of unlocking rural growth in order to increase agricultural production.Mr Dae said under the project, which is going to run, Mpigi residents will also benefit from piloting of Korean model village development strategy so that locals can be empowered with skills of fighting poverty.Read more

Oil prices rose slightly, with Brent prices bouncing back from lows caused largely by a global oversupply of crude.Approaching midday in London, Brent North Sea crude for delivery stood at $36.43 a barrel, up eight cents compared with close.Elsewhere, US benchmark West Texas Intermediate (WTI) for delivery was 22 cents higher at $36.03 a barrel.Crude futures are heading for a second annual loss on signs that a global glut will be prolonged as OPEC seeks to maintain market share in the face of fierce competition from North American shale oil producers.Brent slumped amid speculation suppliers from the Middle East to the United States will continue pumping, exacerbating the surplus as they fight for market share."It's all about market share and bravado at the moment," Jonathan Barratt, chief investment officer at Ayers Alliance Securities in Sydney, told Bloomberg News. Read more

One word that has resonated around the business environment is the “Shilling.” The positives from the Shilling have been largely far-fetched unless one is a speculator, a landlord or perhaps, National Social Security Fund. The bulk of the effects of the Shilling have been negative as they have fed into consumer goods, both imported and locally produced, rental prices, interest rates, electricity prices, motor-vehicle prices and lending rates.It also posed a challenge to policy makers at Bank of Uganda (BoU) and the Ministry of Finance, Planning and Economic Development. The Shilling was already losing ground to all major currencies but more specifically the dollar. Right from the onset, BoU had stated that the Shilling was “correcting” after the appreciation. However, during the same period, BoU also warned there were speculators who were responsible for the fast-paced depreciation of the Uganda Shilling. Read more

When Uchumi Supermarkets closed, it was the time Uganda’s economy was facing headwinds. 

The analogy tended to suggest the supermarket’s closure was a result of a troubled economy and the rather small middle-class community.True that the economy is projected to slowdown but it would be shooting blanks if such failures are heaped all in one place.The economy is expected to slowdown to 5 from 5.8 per cent due to a weak Shilling - notwithstanding gains, rising inflation, high energy prices and surging interest rates. Prior to Uchumi’s closure, British Airways had announced a halt on all flights to Entebbe International Airport because the route had become unviable. Read more

Mombasa port, the major gateway of trade to East Africa, needs to obtain market share of global sea trade before attaining world-class status.The port of Mombasa is among one of the top five container ports in Africa. Globally, the port according to Kenya Ports Authority (KPA), is ranked 112, up from 120 the previous year. For that, East Africa’s biggest port must keep up the pace with emerging global developments and strive to sustain a top position as a container port in the region and beyond.Stretched along the Indian Ocean coast, port Mombasa has strategically aligned itself to increase investment in infrastructure development; modernise and develop Mombasa port to international standards. Read more

Cord leader Raila Odinga was summoned to appear before the Ethics and Anti-Corruption Commission on Monday over claims he has made on the use of Eurobond funds. EACC officials have warned that Mr Odinga would be prosecuted if he fails to honour the new summonses.But Mr Odinga has declined to appear before the commission and told the officers there is no threat that he has not faced in his life.The commission, in a statement signed by Chief Executive Halakhe Waqo, spelt out its powers to summon witnesses and suspects.The section reads: “The director and an investigator shall have the powers, privileges and immunities of a police officer in addition to any other powers the director or investigator has under this part.” Read more

Following the displacement of people in Bulambuli due to El-Nino rains, farmers in the region have been advised to practice better climate adaptation techniques. The farmers, mostly small holders were also advised to avoid tilling land along steep slopes due to the higher vulnerability to mudslides during this rainy season.Sarah Nachuha, the programme manager at ECOTRUST, an environment management organization observed that there is need to support farmers as they adopt better climate adaptation techniques."We need to rally all stakeholders to increase awareness in the region so that our farmers especially those around the fragile steep areas relocate elsewhere and embrace tree planting, making ditches to prepare for eventualities," said Nachuha. Read more

Cigarette manufacturer British American Tobacco (BAT) is caught up in yet another bribery scam in Uganda, days after the firm was reported to have bribed Kenya’s former Trade minister Moses Wetang’ula. But the London-based tobacco firm has denied any wrongdoing, saying it is not the subject of any investigation by the UK’s Serious Fraud Office.“As far as we know the SFO has not set up any inquiry but if they do, we will cooperate fully and are confident there has been no breach of the UK Bribery Act,” a spokesman at BAT Plc said in response to the Business Daily’s queries.Solomon Muyita, an ex-employee of British American Tobacco Uganda (Batu), has claimed that the tobacco firm bribed a local environmental official to misreport the impact from a fire at one of its warehouses in Uganda. Read more

Uganda can successfully pursue socioeconomic development through embracing social entrepreneurship, a key pillar in enabling the public attain better standards of living. According to Ms Lynsey Farrel, a senior change manager at Ashoka, an international body promoting global community development, Uganda needs selfless entrepreneurs that create innovations to positively change communities without founders seeking profitability from such initiatives but satisfaction derived from the betterment of community.Speaking at an Africa Social Entrepreneurship Summit held in Kampala, Ms Farrel said: “We need entrepreneurs that are less focused on pursuing profits from their innovations. Generous people of that nature must have the primary objective of causing the general transformation of vulnerable communities through paving a way out for them to live purposeful lives by engaging in income generating activities,” she said. Read more

Uganda Revenue Authority (URA) has partnered with the United Nations Office on Drugs and Crime and other government agencies to launch a Container Control Programme (CCP) meant to combat illicit trade.Speaking at the agreement signing in Kampala, URA Commissioner General Doris Akol said, together with Uganda Police Force and Uganda Wildlife Authority (UWA), the programme seeks to eliminate shipping containers exploited by criminals to transport wildlife commodities and illegal drugs. “This collaboration between security and enforcement agencies will help build capacity in fighting organised crime which is done through sophisticated networks,” said Ms Akol. She said Uganda is being used as a conduit route of smuggled ivory and rhino horns, adding that URA and the police have about 20 tonnes of ivory confiscated at various border points. Read more

OPEC's policy of maintaining high oil production risks heaping more downward pressure on oil prices, especially with Iranian crude set to enter the global marketplace, analysts say.While lower prices eat into the revenues of the oil cartel's members, cheap crude may result in lower production from non-OPEC nations -- helping countries like Saudi Arabia preserve their market share.The Organization of the Petroleum Exporting Countries decided at its meeting in Vienna against cutting the cartel's oil output despite sliding prices and ahead of higher production from Iran.Going into the meeting, OPEC -- whose members together pump out more than one third of world oil -- has consistently struggled to keep production at a target of 30 million barrels.The cartel is pumping out around 32 million barrels daily -- a figure that is set to rise in coming months as Iran looks to produce more crude following the lifting of sanctions -- while OPEC appears to have abandoned its target following the meeting. Read more

EFC Uganda, a microfinance institution has secured a Shs10b loan from the Dutch Development Bank (FMO) to lend to small enterprises in the country.During the signing ceremony at the EFC Uganda offices in Kampala, the two organisations revealed that the money is meant to support micro and small sized enterprises in Uganda with short term capital requirements.FMO chief executive Nanno Kleiterp said: “The financing will enable EFC Uganda to support job creation in Uganda. It will provide support for MSE’s in Uganda, which will stimulate economic growth, development and innovation.”EFC Uganda is one of the emerging microfinance institutions founded that has seen loan uptake rise from Shs8.5bn to Shs17.5b. Read more 

Products labelled in unfamiliar languages pose health risks to consumers, an official from Uganda National Bureau of Standards (UNBS) has said.While conducting an operation on substandard products to rid Nakawa market of substandard products, Mr Jameson Ssewanyana, a UNBS surveillance officer, said certain consumers cannot read, interpret and understand some languages. He said this poses a health risk, especially when a consumer is unable to tell whether the product is of quality or not because of language.“Labelling goods in foreign languages is common with pre-packaged products yet the labelling of all pre-packaged products is governed by one Uganda standard,” he said. Read more

 Uganda and the United Arab Emirates (UAE) are devising means of addressing the trade imbalance that exists between the two countries.While announcing the UAE-Uganda trade and investment conference in Kampala, State minister for Privatisation Aston Kajara said: “The conference would address the trade imbalance between Uganda and UAE.” A delegation of 35 businesspeople from the UAE in the country on a campaign to increase UAE’s investments in Uganda.Mr Kajara said Uganda imported goods worth $370 million (Shs1.2 trillion) from the UAE, while the UAE imported $30 million (Shs102 billion). Read more

Government has embarked on the process of licensing warehouses across the country to improve quality of grains especially maize in Uganda. This is according to Silver Ojakol, the commissioner for external trade, ministry of trade. He made the remarks at the launch of a report on maize standards in Kampala.The development follows reports that Uganda's maize is failing to penetrate the EAC market due to poor quality. 

 Political uncertainty ahead of the general election is one of the reasons why Uganda’s credit rating has been downgraded from stable to negative. A credit rating for a country is an assessment on its ability to pay its debts. Moody’s, a credit rating agency, revealed the political environment had fastened the outflows of the much-needed investment due to uncertainty.“Increased political uncertainty as the presidential elections approach has exacerbated external vulnerability, accelerating capital outflows in an already volatile emerging market environment,” the Moody’s rating released reveals. Moody’s had given Uganda a stable rating based on “healthy growth prospects and solid public finances.” Those prospects have since dwindled with the economy already expected to grow at 5 per cent from 5.8 per cent that was initially projected. Read more 

Hiring and firing of employees is a complex process and should be approached with proper consideration if chief executive officers (CEOs) are to build reputable organisations.This according to Dr Ian Clarke, the chairman of the International Medical Group, can only happen by having the right people in the right places.

While addressing CEOs on the theme ‘Building Reputable Organisation’ at a breakfast meeting in Kampala, Dr Clarke said: “Hire the right people and find the right person with potential; potential can grow into competence,.”Dr Clarke added: “Do not hire pieces of paper; everyone in Uganda wants to get degrees and master’s but some are not worth it.” The meeting, organised by Federation of Uganda Employers, attracted 40 CEOs of reputable companies in the country. Read more 

When the Top 100 Mid-Size Survey, a brain-child of the Nation Media Group (Monitor Publications Limited) and KPMG was launched, not even the companies that were involved then fully understood its magnitude and impact.The number of mid-size companies voluntarily registering for the ranking is overwhelming despite the rigorous processes and scrutiny the firms are subjected to.Speaking ahead of Top 100 mid-size gala, Monitor Publications managing director Tony Glencross said the success of this project was based on perseverance. He said: “There will be companies that will not make it but there is always a next time.”He also attributed a lot of the success of the project to commitment, dedications and transparency of the mid-size companies. 400 countries registered, out of which 250 were surveyed. Read more

South African businesses operating in Uganda have formed a forum to strengthen trade relations between the two countries.Christened the Forum for South African Businesses in Uganda, the association is expected to carry out a survey on how many jobs are created for Ugandans, revenue contributed to the economy and skills training for local business communities. All these are aimed at boosting trade.In his keynote address to a delegation of South African businessmen on an outward investment mission to Uganda in Kampala South African High Commissioner to Uganda Lekoa Mollo said: “This forum will also look into how they would facilitate Ugandan businessmen to have footprints in South Africa”.He said South Africa considers Uganda as its strategic economic partner because of its location and link to the Great lakes region.Because of this, he said: “I call on you South African business community to do business with Uganda because it will allow you to strengthen and spread your relations with other countries in Eastern Africa.” Read more

South African telecoms giant MTN has won a respite on the payment of a massive $5.2 billion fine imposed on the company in Nigeria to allow for negotiations, the mobile phone operator said.The Nigerian Communications Commission (NCC) slapped the penalty on Africa's largest telecoms firm for failing to deactivate 5.1 million unregistered SIM cards, sending its share price plummeting and leading to the resignation of chief executive Sifiso Dabengwa.The deadline for the fine to be paid, but the company announced that the NCC had agreed that it will not be payable until the end of negotiations entered into by acting executive chairman Phuthuma Nhleko, who has taken on Dabengwa's role."Shareholders are advised that the executive chairman of the company, Mr Phuthuma Nhleko, has personally met with the Nigerian authorities to continue the ongoing discussions with them regarding the fine," the statement said. Read more

Uganda-based Pearl Dairy Farms Limited is set to build a production and repackaging plant in Nairobi's Industrial Area as it moves to grow its market share in Kenya.The company, the agricultural arm of the Midland Group, serves the local market with ghee, butter and milk powder imported from its Ugandan plant.Pearl says initial estimates of the investment in the planned factory stands at about Sh100 million.“We have for long been serving the Kenyan market from Uganda and our new factory will help in repackaging our products and subsequently set up a plant,” Atul Chaturvedi, the CEO of Pearl told Business Daily in an interview in Nairobi.“The repackaging factory will be operational while the manufacturing plant will follow as the sector has shown significant growth encouraging investments,” he added. Read more

South Africa has embarked on enhancing its investments in Uganda, Daily Monitor has learnt.

In support of the initiative, South Africa’s department of Trade and Industry will lead a delegation of businesspeople on an outward selling mission (OSM) scheduled to take place in Kampala.The OSM aims to increase trade and investment, and deepen bilateral relations between the two countries.In a communication to Daily Monitor, South Africa’s minister of Trade and Industry, Dr Rob Davies, said: “The mission is part of South Africa’s initiatives to promote continuous and sustainable bilateral trade relations with African countries in order to advance SA’s industrial development and export diversification.”The mission will also serve as an ideal opportunity for South African companies to export value-added products and services to Uganda and identify investment opportunities in the country. Read more

Over 100 Small and Medium Enterprises (SME) in Uganda are set to benefit under the SWITCH Africa Green (SWITCH AG)  which has been developed to support African countries in their transition to an Inclusive Green Economy and in promoting a shift to more Sustainable Consumption and Production (SCP) practices and patterns.SWITCH Africa Green is an EU funded programme implemented by United Nations Environmental Programme (UNEP) in collaboration with United Nations Development Programme (UNDP) and United Nations Office for Project Services (UNOPS). It’s being implemented in six countries which include Kenya, Uganda, Ghana, Burkina Faso, Mauritius and South Africa. In Uganda one of the projects is being implemented by Uganda Small Scale Industries Association (USSIA) and the Uganda Cleaner Product Center.Addressing the SME, USSIA Executive Director John Walugembe said that the purpose of the project was to see African countries transit towards a greener economy. Read more

Market chairperson Jonathan Gitta:  Anxiety as traders abandons Wandegeya market
Wandegeya market operators are worried about the rising number of traders leaving the market.In an exclusive interview with the New Vision, the market chairperson Jonathan Gitta said that the market is supposed to be occupied by 1100 traders but they currently have only 70% of the number."Some people come into the market expecting to get high profits immediately so when they fail to do so, they leave the market," he said.He also said that they have been forced to join up some lockups to get bigger ones after realizing that most of the traders leave the market because of limited space."The market will then be occupied by 900 traders after joining up several lockups instead of 1100 traders," he added. He further explained that the major problem of the market is luck of customers who think products and groceries in the market are at high prices. Read moreUETCL: What it costs to take power to consumers
Electricity end–user tariffs are a function of the generation, transmission and distribution costs divided by the units generated minus the units lost.The Bujagali hydropower plant, which generates 43.5 per cent of the electricity on Uganda’s national grid, sells each unit at the average of $0.11 (Shs398.75).Eskom Uganda Limited generates 37.8 per cent of the power, and it sells each unit at $0.1 (Shs36.25). Kakira Sugar Works generates 8 per cent of the electricity used, and sells it at Shs290.Bugoye–Tronder, which produces 1.3 per cent of the power, charges Shs290, too, per unit.All these companies sell their electricity to Uganda Electricity Transmission Company Limited (UETCL), the sole buyer of bulk electricity in Uganda.UETCL will spend Shs834.8b, up from Shs738.1b, to buy electricity from the generation companies.Read moreCOSHGM: Respect workers’ contracts, government tells employers
Government has told employers to provide workers with contracts that define their relationship at work places so as to protect their rights.While officiating at the International Day of Decent Work in Kampala last week, Mr David Mugisa, the commissioner occupational safety and health in the Gender ministry, said all employers are mandated by law to provide workers with some form of identification so that in case of any accident while on duty, the affected workers can be compensated appropriately.“Even if you have contractors who have subcontracted people to do work on your site, there should be some sort of identification which defines who they are,” he said.He cited Crestfoam mattress factory in Kampala where six workers died in a fire that gutted the factory, adding that there will be 100 per cent compensation and those injured will be compensated too.Read moreMOE: Uganda refutes power import claims by Kenya
Kenya power regulators said they have doubled their power exports to Uganda, a senior official from ministry of Energy has refuted the claims. The Daily Monitor sister newspaper Business Daily reported that Kenya had since more than doubled its electricity sales to Uganda.In the report, it was stated that a total of 26.56 million Kilowatt-hours (kWh) were being exported to Uganda and Tanzania up from 12.63 million kWh indicating a 110.2 per cent growth.In an interview with ministry of Energy Permanent Secretary Kabagambe Kaliisa, it emerged that there has never been such a commercial transaction between the two neighbouring countries. He said: “There are no direct commercial power exports from Kenya to Uganda.” Read moreWB: Sub-Saharan Africa posts slowest growth 
Economic growth in sub-Saharan Africa has declined to 3.7 per cent, the lowest level, a new World Bank report has revealed. The new report was released.The fall signifies the difficult economic times Uganda and other African countries are facing.The affected countries are experiencing reduced foreign exchange earnings from commodity exports due to slowdown in global trade, low foreign direct investment and capital outflows thus leading to low economic growth. The new Africa’s Pulse (report), the bi-annual analysis of economic trends and data on the continent, also shows that growth will slow down to 3.7 per cent from 4.6 per cent , reaching the lowest growth rate . Read morePacific trade ministers to meet after impasse
Trade ministers of 12 Pacific Rim countries failed again to conclude a deal on a huge free-trade area and will meet one more time in hopes of reaching agreement. The ministers attempting to nail down a deal encompassing 40 percent of the global economy began meeting with hopes of a breakthrough, but the talks in Atlanta broke up after only about 15 minutes, with little progress. Hawaii, trade ministers gathered with expectations of a deal -- and left empty-handed. "The main issues are still biologics and the dairy trade, between the US and Canada and New Zealand. The automotive issues are mostly settled," said an Asian official after the latest meeting. Read moreCCIMMOE: Uganda to host global tech companies at Africa innovation meet
Uganda will host some of the world’s largest technology firms and ministers of the various African countries at the Innovation Africa Summit. The conference is expected to focus on using technology in education in Africa, with the aim of tapping lucrative government contracts to supply and manage e-learning initiatives in the sector.Firms like HP (Hewlett-Packard), Intel, Lenovo, Oracle, Canon and Samsung, among others, have already lined up to attend the conference. “We hope to see several top ICT companies coming to Uganda to showcase the latest technologies and thereafter, have several investors taking on these technologies for application in Uganda for better service delivery and economic growth,” said Mr Patrick Muinda, the assistant commissioner Communications and Information Management Unit in the Ministry of Education. Read morePlan to liberalise regional airspace hands KQ lifeline
Kenya is among four countries drafting a new aviation plan that could hand the ailing national carrier a new lease of life. Other countries are Uganda, Rwanda and South Sudan. The four countries, which initially broke away from the East African Community to form the Northern Corridor Summit, are on the verge of concluding talks to form a one airspace area.The plan was initially raised by South Sudan President Salva Kiir and his Ugandan counterpart Yoweri Museveni as a way of dealing with Kenya Airways’ high ticket prices.However, deliberations on the matter look set to turn around the airline’s fortunes.Officials in charge of aviation in the ministries of transport of the four countries and their directors have agreed to liberalise the regional air space. Effectively, the agreement could see Kenya Airways and RwandaAir, the only two operational national carriers, assume the role in the four countries opening them to bigger volume of business.Read moreBOU: Ugandan economy to grow by up to 5.5 percent
Uganda's economy continues to perform below par thanks to persistent high lending rates, weak export performance and infrastructure gaps -- rendering its seven per cent growth target elusive.Lending rates have averaged more than 20 per cent, amid high costs of funding experienced by banks, observers say.Whereas Uganda's economy grew by five per cent against a target of 5.8 per cent, down from 5.7 per cent against a target of 6.2 per cent, Bank of Uganda (BoU) data shows.The World Bank now projects growth between five and 5.5 per cent during in light of depressed investment flows attributed to uncertainty over election campaigns."A noticeable slowdown in investments may be felt during the pre-election period as investors stay away... Continued suspense surrounding the US Fed's intentions of raising interest rates will force BoU to adopt a 'wait and see' attitude before intervening in the forex market as a result of depleted stabilisation resources," said Rachael.Read morePD: Oil production licences to be issued this year - government
Five oil production licences will be issued by, a government official has said.Speaking to journalists at an international oil and gas conference in Kampala, the head of the petroleum directorate, Mr Ernest Rubondo, revealed that they plan to issue around five production licences to France’s Total E&P and UK’s Tullow PLC.He said: “Issuance of the production licences like you heard awaits operationalisation of a petroleum authority but [we] hope will get this out of the way.”Meanwhile, absence of an operational petroleum authority has been blamed for the delayed issuance of production licences to oil companies.The petroleum authority, according to the Petroleum Act, is the body charged with, among others, monitoring and regulating oil activities, administering petroleum agreements, and ensuring that licenced oil companies uphold laws, regulations, rules and contract terms. Read moreDelayed oil dreams hurting many Ugandans
In one of Kampala’s suburbs along Bukoto-Kisasi road is an entire parking lot of trucks. They are branded trucks with banners reading “Baker Hughes” and “Halliburton.” Some of the earth moving equipment has been lying idle, the reason being an oil sector that has been quiet as oil companies await issuance of production licences. The equipment is only part of the story that highlights how businesses have stalled and people laid-off. Some of them, including Bemuga Forwarders and Three Ways Shipping Group have laid back and are now held together by hope.Dreams of many have been sent down the drains at least for now. Suppliers have had to lay-off workers and so have oil companies as they cope with the inactivity in the sector – worsened by the complete crash of oil prices. Doris (name withheld on request) used to be an employee of the oil company, Tullow. On a good salary, she was looking on the positive side but all this came crumbling when she was among the 120 that were laid-off. Read moreKCCA starts taxing special hire cars to increase revenue base
Special hire cars will start paying taxes to Kampala Capital City Authority (KCCA) as the authority looks to boost its revenue base.In a press statement, the authority said a one to four (1-4) seater will pay Shs40,000 whereas a five to eight (5-8) seater will pay Shs52, 000.The registration started in Nakawa Division, and will spread to the five divisions of Kampala.Some of the stages will be disbanded, merged or relocated after the exercise is done, according to the statement The number of special hire cars operating in Kampala and nationally is unknown but once established, the figure will enable proper revenue collection by the city authority.The Special Hire Operators and Drivers Association of Uganda had complained about errant drivers who commit crimes such as robberies thereby ruining the industry’s image.“The registration exercise seeks, among other benefits, to streamline and bring order and sanity in the sector, alongside ensuring security of operators and passengers,” the statement reads in part. Read moreWorldRemit: Telcos Drive Mobile Money Growth
Telecomunications operators in the continent are seen recognising how interoperability is necessary to reap the full benefits of Mobile Money.This is according to WorldRemit, the international money transfer agency.
The observation follows the launch of Mobile Money transfers between Rwanda and Uganda by MTN.
"International remittances via Mobile Money are growing both in Africa and globally," Alix Murphy, Senior Mobile Analyst at WorldRemit.He said there were now over 260 Mobile Money services worldwide with over 100 million active users.Murphy said the Mobile Money interoperability initiatives that exist between telecoms operators remained intra-country or intra-continent, as most lacked the underlying infrastructure for money transfers internationally across continents. Read moreGSMCC: ‘Embrace joint ventures to win contracts’
Local contractors have been told to embrace joint ventures if they want to ably address problems hampering the industry.Mr Heinz G Rittmann, the executive director of German Small and Medium construction companies (GSMCC), said unity is the only way local companies can generate the required expertise, financial, labour and tool capacity to win contracts.He was speaking at a joint venture workshop for Uganda National Association for Building and Civil Engineering Contractors (Unabcec).Mr Rittmann said for the joint ventures to blossom, trust and honest must be beyond reasonable doubt. He highlighted selfishness, backbiting and lack of general commitment as the key factors that fail joint ventures.Citing an example of Sierra Leon where GSMCC has helped to develop the industry, Mr Rittmann said: “We have invested more than $10m (about Shs36b) in Sierra Leon’s construction industry. We are ready to do the same here (Uganda) so that the industry can develop. However, we shall only work with honest, trusted and registered companies.”Unabcec executive director Michel Mivule Pinto admitted that the local construction industry is crippling because proprietors lack knowledge about the usefulness of joint ventures. Read moreUBA half-year earnings rise by 40%
Pan-African financial services group, United Bank for Africa (UBA), has announced its earnings indicating a 40 per cent growth.UBA’s earnings grew to N166.9b (about Shs3.07 trillion), compared to N138.2b (about Shs2.54 trillion). The Bank’s profit before tax rose to 35.1 per cent translating into N39b (about Shs719.5b), while profit after tax was up by 40 per cent to N32 billion (about Shs590.4b) within the same period.The UBA 2015 half-year results also show improvement in operational efficiencies where the bank’s net operating income rose by 21per cent to N108.7b (about Shs2 trillion), compared to N90b (about Shs1.66 trillion) in the comparable period.The growth is attributed to profitability of the Nigerian group that extended loans to support domestic businesses. The Nigerian group contributed to the growth by more than 23 per cent. Read morePM: Govt to turn to financial markets for infrastructure funds - Rugunda
Government will consider capital markets as a viable option where it can borrow money to finance its infrastructure projects, Prime Minister Ruhakana Rugunda has said.Rugunda told a meeting at Serena hotel in Kampala at the official launch of the automated Uganda Securities Exchange (USE) that "government would look into that seriously"."I encourage the private companies to come and raise cheap capital through capital markets either by listing or issuing corporate bonds," Rugunda said. "As government, we look forward to issuing long-term bonds to fund infrastructure projects." Read moreDPACTI: Regional industrialists call for stringent laws on counterfeits
Regional manufacturers say they are on the verge of being kicked out of business if governments do not enact stringent laws against counterfeit goods.Mr Hussein Kamote, the director of policy and advocacy at the Confederation of Tanzania Industries, said counterfeits have discouraged serious investment, tarnished brands of genuine industries and hampered efforts to upgrade the industry to capital intensive status.“Genuine manufacturers are running out of business because they cannot compete with ‘black markets’ that sell products quarter the price of the original goods,” said Mr Kamote. He made the remarks at the East African Manufacturers Business Summit in Kampala which brought together more than 500 delegates and investors from the region. Read moreSEATINI: 13,000 maize farmers to resume crop exports to Kenya, South Sudan
Thirteen thousand maize farmers under the association, Masindi District Farmers Association (MADFA), are set to resume exporting maize flour to South Sudan and Kenya after sorting out quality issues.This was revealed by MADFA programmes officer Nezaphor Aliganyira in Masindi while meeting farmers who had come from Nakasongola, Nakaseke and Luweero districts to learn about increasing maize productivity and maintaining quality standards.The team was led by Southern and Eastern African Trade, Information and Negotiations Institute (SEATINI) programmes officer Lina Asiimwe. Read moreUIRA: Scrap medical assessment fees, Insurance Regulatory Authority tells government
The executive director Uganda Insurance Regulatory Authority (IRA) has asked government to scrap off the police medical assessment fees in order to ease claim settlements.Mr Ibrahim Kadunabbi Lubega said many Ugandans, especially low income earners, find it hard or even impossible to pay Shs70,000 to get the medical report, a prerequisite that insurers use to settle claims.“The medical assessment report fees should be scrapped off or made cheap to enable people get their claims,” Mr Kadunabbi said at IRA offices in Kampala.He was responding to complaints mainly from bodaboda cyclists who said they hardly claim anything despite paying for Motor Third Party Insurance (MTP) which is provided for in the Third Party Risks Act. Read moreNew car dealers want used motor vehicles phased out
As Uganda prepares to launch its first locally manufactured automobile to the market in 2018, new car dealers have appealed to the government to begin phasing out the importation of used motor vehicles on the market. According to the dealers, the market needs to purchase at least 4,000 new vehicles per year for any manufacturing or assembling plant to expect break even. However, according to statistics from the Uganda bureau of statistics (UBOS) the Ugandan market only absorbs about 2,500 new vehicles. “Most people in the country are used to buying used, environmentally unfriendly, vehicles that are imported into the country quite cheaply. But if we expect to replace them with our own locally manufactured vehicles, we need to prepare the market now by phasing out importation of used vehicles,” said Karim Shehata, MAC country sales and marketing manager. Read moreAfter struggling, Uganda’s leading export commodity coffee, posted gains both in volume and value at the international market, a new report indicates.If this performance continues, Uganda stands a chance to be among the world’s top five producers.The new development has made the country move three steps from position number 10 after Brazil, Vietnam, Colombia, Honduras, Indonesia and India.Statistics from the Uganda Coffee Development Authority (UCDA) indicate that, there was a 16 per cent and 18 per cent increase in volume and value respectively. Uganda exported 403,381 60-kg bags up from 335,405 60kg bags exported. Read moreURBS moves to automate business licensing
As Uganda’s business rankings globally continue to drop, Uganda Registration Service Bureau (URSB) has moved in to automate business registration process and ease the conditions for investors.The automation process will involve creation of an e-licensing portal, a one stop centre that will include services from application for business licences, registration, provision of necessary data, and acquisition of licences just at a click of a computer mouse.Speaking at a meeting on electronic licensing in Kampala, the registrar general URBS, Mr Bemanya Twebaze, said the system is overwhelmed and very bureaucratic with ministries, departments and Agencies all doing the same activity (issuing licences) yet in a very long time.“The e-licensing portal is already in place, though more of informational,” Mr Bemanya said. Read more300 exhibitors to grace Buganda Tourism Expo
Over 300 exhibitors from different parts of the country and neighbouring states are to embrace this year's eighth Buganda Kingdom Tourism expo. The event is scheduled to run from August 23rd to 30th at the grounds of the Kabaka's official palace in Lubiri, Mengo. It is organized by the Buganda Heritage and Tourism Board in partnership with Central Government with the aim of promoting culture and tourism in different parts of the country. Addressing journalists at palace grounds, the kingdom's minister for tourism, Ritah Namyalo said they target 300 exhibitors from various parts of the country and neighboring states. She noted that over 100 participants have already registered. Registration fees range between sh100,000 and sh2m depending on the space. Kabaka Ronald Mutebi will close the event on August 30th. Other dignitaries expected include the Nnabagereka Sylvia Nagginda, Katikkiro Peter Mayiga and the Central Government minister of tourism, Maria Mutagamba.Read moreFEAPM: Regional pharmaceuticals want incentives for local production
Through their umbrella organisation, Federation of the East African Pharmaceutical Manufacturers (FEAPM), the group wants a uniform preferential margin of 20 per cent for all regionally produced medicines and medical devices in public tenders.While meeting East African Community secretary general Richard Sezibera in Arusha, Tanzania, FEAPM members led by chairperson Nazeem Mohamed said the implementation of the incentive framework would lead to the growth of local production. “In turn, employment generation, opportunities for highly skilled labour force, reduction of substandard and counterfeit products, creation of high value industry and attraction of investments and financial viability, improved skills and technology transfer, creation of backward/forward linkages and import savings and export earnings,” Mr Mohamed said. Read more
We have not announced new rate changes - MultiChoice
DStv is a subject of debate on Facebook, Twitter, WhatsApp and email conversations, after a document circulating suggested that subscription prices would increase by at least 28 per cent.MultiChoice Uganda, that owns satellite TV service DStv, have denied this communication, insisting it didn’t come through the official channels.“If we were to communicate any price changes, we would do it formally and through the proper channels,” Ms Tina Wamala, the public relations and communications manager, told Daily Monitor in a telephone interview. In an official statement, MultiChoice said: “MultiChoice Uganda informs its subscribers and the general public that the price incremental document being circulated on social media is not an officially sanctioned communication from the company and was an internal discussion document. Read more Ana Lucía Coronel: IMF lauds gov't on infrastructure projects
The International Monetary Fund (IMF) has praised the Ugandan government for investing heavily in building new infrastructure like roads and dams. “Addressing existing infrastructure bottlenecks is key to boosting potential growth and creating job opportunities. The authorities are committed to sequencing the implementation of the ambitious infrastructure investment package—in the areas of energy and transport—to ensure consistency with the absorptive and implementation capacities of the economy and preserve debt sustainability,” said Ana Lucía Coronel, IMF mission chief and senior resident representative for Uganda. Coronel made the remarks in a statement issued after a team from the IMF visited Kampala to conduct the Article IV Consultation and the fourth review of Uganda’s economic program supported by the Policy Support Instrument (PSI). “It remains crucial that the selected projects carry the best possible financial terms and be commercially viable and transparently executed,” she said. The IMF chief also lauded the approval of the Public Financial Management (PFM) Act as a major milestone.Read moreKenya provides market for Uganda, Tanzania produce
Kenya is increasingly becoming a market for agriculture products from Uganda and Tanzania.
According to the economic survey, massive imports of unmilled maize and sugar from the two countries boosted their trade with Kenya by 27.2 per cent compared .This is good news for the two states that are major destinations for Kenya’s industrial products.Kenya faced a maize shortage while the perennial sugar shortage of about 300,000 metric tonnes provides a ready market for members of the trading bloc.
The East African Community trade protocol allows countries unrestricted market access across the boundaries.“Imports from the East African Community grew by 27.2 per cent to Sh36.66 billion with those from Uganda and Tanzania jointly amounting to Sh35.9 billion,” the survey says. To underscore the importance of the Kenya market to Uganda, slightly more than half of the total value of imports from the country during the review comprised tobacco, sugar and unmilled maize.Read moreUNCOCI: Gulf Countries turn to Ugandan cereals, vegetables and fruits
Farmers have been advised to position themselves for a new emerging market in the Gulf region where there is an assured market for Ugandan fruits, vegetable and cereals.In an exclusive interview, Ms Olive Kigongo, the president Uganda National Chamber of Commerce and Industry said Ugandans should brace themselves for the new market in the Gulf region because the Arab countries import all their food and as long as they can fulfill the quantities and quality of food required, there is an assured market for avocados, pine apples, passion fruits and vegetables from Uganda.“The Islamic Chamber of Commerce, Industry and Agriculture has identified 57 companies which are interested in different investments in agriculture because Arab countries import all their food and as long as we can satisfy the quantities and quality, this is the opportunity,” she said. Read moreBanks swim in profits as loans become more costly
Commercial banks in general have had improved performance, according to the published financial statements. The profitability of banks has improved by 25 per cent to Shs536b. The sector performance was beginning to look gloomy when Bank of Uganda (BoU) closed Global Trust Bank over sustained losses. This is a recovery from the reduced profitability when banks experienced a 22 per cent reduction as a result of reduced lending and a fall in income from loans. Banks lent more, earning more from loans as well as growing customer deposits, which grew by 18 per cent to Shs13 trillion.Read moreGovernment, traders agree to stop exports to EU markets
The two ministries of Trade and Agriculture have resolved to impose a self-ban on export of fresh fruits and vegetables to the European Union markets to control the spread of harmful organisms found in the produce exported.The ban, which, was seconded by exporters of fresh fruits and vegetables, industry players who after several appeals convinced the two ministries to reduce the self-imposed suspension from the recommended. Uganda’s embassy in Brussels has been notifying the responsible ministries of the interception (harmful organisms) of plants and plant products exported from Uganda to various countries in the European Union (EU). Read moreUNABCEC: Stakeholders laud ban on twisted bars
Stakeholders have welcomed the new move by the Uganda National Bureau of Standards to bring sanity to the construction industry by issuing new standards for roofing sheets and iron bars which come into force. The standards agency has with immediate effect, banned the manufacture and importation of cold twisted bars for reinforcement purposes.Michael Muvule Pinto, the Executive Director of the Uganda National Association of Building and Civil Engineering Contractors (UNABCEC) lauded UNBS for plans to sensitise people about the new standard across the country. “As an association, we are very happy to see standards raised. We believe that it is important to use quality materials in all construction,” he said.He also said that it is important that contractors use genuine products appropriately. “Sometimes we have quality materials that are used in a bad way; we want quality materials but also that are used for the right applications.” Read moreMSTI: Leather SMEs launch new market strategy
Small and medium enterprises making leather products can now manufacture quality products that can attract market at home, East African Community and COMESA region following the launch of the strategy that will guide the operations of the sector.East African community has a total population of about 125 million people while COMESA region has about 500 million people which is a huge market for leather products if they are of good quality.This is according to the minister of state for trade in charge of Industry, Dr.James Shinyabulo Mutende, while launching the leather strategy at Imperial Royal hotel in Kampala on."Without quality and following the standards required, we cannot compete on the global market whose taste and preferences are changing, so quality in our SMEs is a must," said Mutende. The strategy is looking at all aspects that will make the leather industry more attractive and competitive by addressing issues of quality and standards in addition to gender in the production process.Read moreDollar rebounds vs euro
The dollar shook off its euro doldrums, strengthening a bit despite some poor US economic data. After days of trading lower against the 19-nation currency, the greenback lured buyers in a somewhat depleted foreign-exchange market activity amid Asia and Europe's May Day holidays. The euro bought $1.1200 around 2100 GMT, down from $1.1224. Kathy Lien of BK Asset Management noted that the dollar had firmed even as investors weighed a decline in US construction spending and a disappointing ISM report on manufacturing.The dollar fell, despite jobless claims sinking to a low. "The fact that many markets in continental Europe were closed contributed to the unusual reaction and the general volatility in the forex market," she said. "Fundamentally, the prospect of Fed tightening, the crisis in Greece, upcoming election in the UK and credit problems in China make the dollar an attractive investment," she said.Read moreUNNA: Ugandans in America want government to streamline investment policies
Ugandans living in America want clear government policies and guidelines on how they can invest in their own country.This was revealed by Brian Kwesiga, the president of the Uganda North American Association (UNNA) in a special meeting between his delegation and key government stakeholders at the Uganda Investment Authority (UIA) head office in Kampala. UNAA is the largest formal association of Ugandans in the Diaspora with the objective of promoting social, cultural and economic advancement of the Ugandan Community in North America. Kwesiga noted that Ugandans in the Diaspora remit a lot of revenue to their country in addition to investing in buying land, building houses as well as supporting their respective families but said that lack of clear investment policy was a deterrent to them putting their money in development projects.He cited the example of Brazil which emerged into a middle class economy with the help of Brazilian who were in Diaspora.Read moreNEMA battling polythene bags from Kenya
After implementing a ban on polythene bags commonly known as Kavera, National Environment Management Authority (NEMA), according to its Executive Director, Dr. Tom Okurut, is facing a new challenge from smugglers glutting Uganda with contraband non-biodegradable polythene bags from Kenya. In a meeting with legislators on Natural Resources committee Wednesday, Okurut said smugglers cunningly emboss on the polythene bags the words, "30 microns" in order to outmaneuver NEMA officials ridding the country of polythene bags below 30 microns. Government slapped a ban on the production and importation of polythene bags below 30 microns, which are usually very thin. Read more

TradeMark Announces U.S.$90 Million for East Africa's Infrastructure
TradeMark East Africa has announced that it will inject about $90m (about Shs 261bn) to promote infrastructural development projects in the region.The announcement came after some data showed that trade in the region had picked up partly as a result of the ease with which cargo is cleared throughout the different corridors, an initiative that TradeMark East Africa was active in facilitating."We are focusing [to invest] around the same about $85 to $90m. The results presented in this annual report point to an ever-improving trade environment which is expected to spur investments and ultimately benefit the citizens of East Africa," said Frank Matsaert, the CEO TradeMark East Africa.He continued: "TMEA is playing an important role as a catalyst in mobilizing around $600 million at Dar es Salaam port to improve its performance through better infrastructure and port operations. Our partnership at both Mombasa and Dar es Salaam ports involves an innovative approach, mixing hardware and software solutions."Read moreURBRA: Uganda told to quickly liberalise pension Sector
The new Chief Executive Officer of the Uganda Retirement Benefits Regulatory Authority (URBRA) David Nyakundi Bonyi has advised Uganda not lose more time on endless debates about pension sector liberalization.He said a considerable amount of time and energy has already been lost.The 53 year old Kenyan, who took over office, said the parliament, having listened to a considerable amount of debate should now seize the opportunity and make a conclusive and informed decision about pension liberalization in Uganda.Nyakundi holds a Bachelor of Laws degree and a Master of Laws (International Trade and Investment Law) from the University of Nairobi. Before his appointment, he was the Corporation Secretary and Manager Legal Services at the Retirement Benefits Authority (RBA) of Kenya. Read moreFDS: Access to finance biggest obstacle for MSMES
The biggest obstacle to business growth faced by Micro, Small and Medium Enterprises (MSMEs) in Uganda is access to finance, according to a survey released by FSD Uganda.Titled “The National Small Business Survey (NSBS) of Uganda,” the study says 74% of such small businesses said getting funds was their worst nightmare. The cost of finance (73%) came in second place. Tax rates (67%), roads (59%), electricity (57%) and macroeconomic environment (54%) were the other bottlenecks that MSMEs ranked high up of their challenges.“Finance was the main area where MSMEs would like government support in all regions except the North. In the northern region, key priorities were improving infrastructure, business services, and access to finance,” said Howard Miller, a senior consultant at Nathan Associates London at the launch of FSD Uganda on at Kampala Sheraton Hotel. The Associates carried out the survey on behalf of FSD Uganda. FSD Uganda is a new guarantee set up and funded by the UK’s Department for International Development (DFID) to support financial inclusion efforts in Uganda. Before its incorporation, FSD Uganda was operating as a secretariat at KPMG Uganda. Read more

UPEB: Coffee exports fall as dollar gains
Records show that there was a drop both in volume and value of Uganda’s coffee exports, a time when the dollar is strengthening.The Uganda Coffee Development Authority (UCDA) report showed that the country exported 290,475 60-kg bags of coffee down from 310,829 exported.The report further showed, the coffee, volume exported earned the country $36.90 million (about Shs107 billion) while, for the coffee, $39.70 million (about Shs115 billion) was earned indicating a 7.5 per cent fall in value.Experts say this should have been the time for the country to cash in on the strong dollar which was not the case.In an interview with Daily Monitor, Uganda Export Promotion Board executive director Emmanuel Mutahunga said: “Exporters would be earning a lot but because they have to convert the earning to purchase the imported inputs, it turns out to be more costly.”Read moreBOU: Mid-month taxes support shilling
Tax filings by corporate firms saw the shilling appreciate by about Shs 27 against the dollar after struggling. Companies are required to file taxes on PAYE, VAT and excise duty by the 15th.The shilling traded at Shs 2,885/90, stronger than the Shs 2,912/22. The local unit traded in the range that experts had predicted.It closed at Shs 2938/48 after corporate firms' heighted demand.According to Standard Chartered bank, "demand for the shilling went up as [firms] remitted their tax payments."The local currency hit the lowest levels when it traded above the Shs 3,000. While BOU said the dollar has strengthened globally, coupled with high corporate demand, it noted that the shilling had to some extent been driven wild by speculators.Read more

European firms explore ventures in the country
President Paul Kagame's key-note address at the UK-Rwanda Trade and Investment forum in London, has yielded early results with a consortium of 40 investors in the country exploration mission for trade and investment opportunities.The mission, comprising businesspersons from the UK, Hungary and the Netherlands, was organised by the Eastern Africa Association that brings together UK firms with business interests in countries of the Eastern region, including Rwanda, Kenya, Uganda and Tanzania.In London, Kagame invited investors to the country, saying "You are guaranteed high rates of return and improvement of our people's well being. I look forward to working together for the development and prosperity."They came. And in Kigali, Rwanda Development Board and other government officials addressed the investors, briefing them on existing investment opportunities in housing, infrastructure, mining and transport sectors. Read moreGovt seeks approval for sh1.3 trillion loan
The Government is seeking Parliament’s approval to receive $483m (sh1.39 trillion) from the Exim Bank of China. The funds are meant for the construction of the 183MW Isimba hydropower station and the Isimba-Bujagali interconnection. Appearing before the parliamentary committee on national economy last week, finance state minister Fred Omach said: “The Exim Bank of China has agreed to provide 85% of the total cost for the project amounting to $483m with the Government of Uganda contributing 15% that amounts to $85m (sh246b) under the preferential export buyer’s credit financing.” Omach said the loan repayment  with an interest rate of 2% per annum. Isimba Power project is located on River Nile between lakes Victoria and Kyoga, 50km from the source of the River Nile. Busongora North MP William Nzoghu wondered why the country continues to borrow yet the national debt is increasing. Read moreTrade minister Amelia Kyambadde: Uganda losing sh497 trillion in unprocessed exports
The economy is losing in excess of sh497 trillion in exports of unprocessed cotton, coffee, cocoa and tobacco, according to reports by the trade ministry. According to trade minister Amelia Kyambadde, Uganda lost as much as $128.45m (sh373b) in exporting goods that were not processed, packaged or branded to the UK. Kyambadde noted that Uganda’s exports of agriculture commodities to the UK declined to $58m (sh168.2b) from $118.4m (sh343.4b) due to limited value addition. “Value addition has become our priority. Uganda has enormous natural resources and is growing into a regional business hub. This gives us opportunities for mutually beneficial strategic partnership with the UK,” Kyambadde said at a breakfast meeting with the British business community in Kampala. According to statistics, imports from the UK had declined to $12.9m (sh37.4b) from $137.6m (sh399b).Read moreNSSF should Share blame for Uganda clays' woes
The Observer, Francis Xavier Ssempiira wrote an excellent rhetorical article, an idealist armchair solution to the Uganda Clays Limited dilemma, which disregards the role of the NSSF in this debt trap.Not only is it simplistic to Uganda Clays' shareholders such as Habib Sembatya, it is a desperate effort at covering up NSSF's role in regard to this whole debt equity conversion transaction. Once upon a time, at the height of the Clay manufacturer's dominance, a proposal was put to the board by the now deceased John Wafula, who was the chief executive officer of the company at the time.That proposal was to put up a plant in Kamonkoli in eastern Uganda. The proposal led to the entry of NSSF as a majority holder after the Kenyatta family-affiliated Kenya Clays Limited opted to sell its entire stake rather than see out that Kamonkoli factory proposal. Read moreIs data the new cashcow for telecom companies?
On a chilly evening inside a taxi, light illuminates from different mobile phone handsets with close to six people accessing the internet through their smart phones. The most popular site appears to be Facebook, but others like those relaying sports and news are quite popular. According to data there are about 8.5 million internet users in Uganda. That is about 23.3 per cent of total penetration. Eighty per cent of that traffic, according to Jackie Namara the head of marketing at Vodafone Uganda, is accessed through mobile gadgets. Vodafone is the telecom to make entry into a market that some consider to be saturated. Across town Vodafone seems to have a strong present, advertising its internet products on billboards, special hire taxis, newspapers, radio and TVs. Read moreStarTimes : Pay TV service providers rush to cash in as deadline loomsGlobal digital migration deadlines nears, pay television services providers are rushing to cash in from the members of the public who would want to do last minute purchases.Pay television service provider StarTimes for instance launched a digital a cheap decoder that seeks to attract especially low income earners who have for long been locked out of watching digital pay Tv services because of price, and facilitate the migration process.The StarTimes Light decoder costs Shs8,000. However, customers will be required to pay an initial subscription fee of shs41,500, which entitles them to digital television services on a Nova bouquet, whose subscription is shs6,000, or for a Basic bouquet.Speaking at the launch of the decoder, StarTimes Marketing Director Mr. Aldrine Nsubuga said the move seeks to increase affordability and enable more Ugandans to enjoy digital pay television services. Read more

CURAD: Expert says gov’t should prioritize agribusiness incubation
An expert in agribusiness enterprise development says that government should consider prioritizing support towards building strong agribusiness incubation centres as well as boost value chain development initiatives.
Joseph Nkandu believes that such initiatives can increase productivity and also enable the sector to offer more employment opportunities. He is the founding managing director of the Consortium for enhancing University of Responsiveness to Agribusiness Development (CURAD).His comments came on the sidelines of a recent fact-finding tour mounted by CURAD Agribusiness Incubator executives to ascertain the level of progress made by the entrepreneurs the facility supports.Read moreUDB gets Shs500b to boost capital base
The government has approved a request by Uganda Development Bank (UDB) to increase the institution’s financial capital from the current Shs100 billion to Shs500 billion.This was revealed at a function hosted by the bank in Kampala.The money will allow the bank to offer loans for major infrastructural developments in key growth sectors of manufacturing, agriculture, extractive industry, and tourism, among others.According to UDB chief executive officer Patricia Ojangole, these sectors are deemed to have a multiplier effect for both wealth and job-creation. Read moreBarclays bank re-launches Prestige Banking
Barclays Bank Uganda has re-launched the custom-made banking product - Prestige Banking.The product, previously known as Premier Life, was developed based on the bank’s customer feedback, and offers a ‘fresh’ approach to corporate banking, including preferential rates, convenient banking and improved financial solutions.“The prestige proposition is carefully designed to help meet clients’ needs by offering easy and quick access to affordable financial solutions and personalised banking,” says Mr Rakesh Jha, the Barclays Bank Uganda managing director.The re-launched product is expected to provide a range of benefits to customers, including express counters at their designated branches and access to life insurance cover of up to Shs21 million, inclusive of last expense funeral cover of up to Shs800,000 payable within 48 hours.Read moreUganda’s trade deficit to widen - economist
Uganda’s trade deficit is to remain large for a long time due to the political situation in South Sudan and Democratic Republic of Congo, which are her prime export markets, the chief economist for Barclays Africa has predicted.Trade deficit is an economic measure of a negative balance of trade in which a country’s imports exceeds its exports.Speaking to Daily Monitor on the sidelines of the Barclays Africa Economic Outlook workshop held in Kampala, Mr Jeff Gable said: “Our concern is that the economic opportunity of South Sudan is still struggling in an environment where security and political issues are at the front.” Read moreURA to Get Sh1 Billion From Confiscated Vehicles
Uganda Revenue Authority (URA) has estimated it could get more than Shs 1bn in revenue from the foreign-registered vehicles it impounded last month.Through its operation, URA seized 79 vehicles that were thought to be in the country illegally. At least 32 of them were later released after the owners presented genuine documents.James Kisale, the assistant commissioner for Enforcement, told reporters at URA head office in Nakawa that most of the vehicles were high- performance cars, which included station wagons, BMWs, and Mercedes Benzes."We found 47 vehicles whose owners presented falsified documents. They are foreign-registered but in the country illegally. They are worth Shs1bn in taxes," Kisale said.All the vehicles were from DR Congo. Two of the vehicles - an Audi and a Benz - were reportedly stolen from London, according to Interpol Uganda.Read moreBitature advises on strong business links
The board chairperson of Umeme and a businessman, Patrick Bitature, has asked the Australia Alumni to build strong business association to create impact in society."If you are not effective as an association you can't make an impact in society and therefore, you need to build a strong business association," Bitature said.He was speaking during the Australia Alumni Association annual general meeting at Protea Hotel in Kampala.He encouraged the members of the association to network together to make the association succeed.The businessman pledged to support the association to grow.Read more