African countries that want to develop and transform can not do away with foreign private capital, Bank of Uganda Deputy Governor Dr Louis Kasekende, has said.

Dr Kasekende, an economist, says domestic savings rates in Africa are too low to provide all the resources needed for the region’s substantial investment requirements, while official sources of foreign savings, such as development assistance, are also insufficient to bridge the gap between domestic savings and investment requirements.

“The median external financing requirement for economies in sub-Saharan Africa is currently around 7 percent of their GDP,” Dr. Kasekende said in a brief he presented at the launch of the Barclays Africa Group’s Africa Financial Markets Index at Kampala Serena Hotel, Uganda January 23, 2018.

Further, he said Africa needs foreign companies to invest in modern businesses on the continent, providing business skills and technology, as the domestic business sectors are still too weak to drive private sector led development.

“Without very substantial levels of foreign direct investment it is difficult to envisage how African economies could generate modern businesses on a sufficient scale to bring about the type of structural transformation that is needed if they are to achieve meaningful middle income status and to generate formal sector employment for the rapidly expanding labour force,” Dr. Kasekende said.

Given the importance of attracting foreign capital to Africa, he says it is imperative that Africans have a clear understanding of the factors which influence foreign capital flows to the region and how conducive the economic and institutional environment in African economies is, to attract foreign capital.

According to Kasekende, the transformation of economic performance in Africa over the last two decades has seen many African economies classified as ‘frontier markets’.

“Frontier markets are economies which are able to attract significant inflows of private capital from international markets, for which both market oriented economic policies and well-functioning domestic financial markets are a prerequisite,” he says.

Over the last three years, the economies of Sub-Saharan Africa combined attracted net foreign direct investment averaging almost US$36 billion per annum and net portfolio capital flows averaging almost $15 billion per annum, according to the data in the IMF’s October 2017 World Economic Outlook.

The magnitude of private capital inflows has overtaken that of net official development assistance (aid) receipts as a source of external financial resources to sub-Saharan Africa.

Although rising interest rates in advanced economies are likely to dampen portfolio capital flows to sub-Saharan Africa in 2018, the IMF forecasts that foreign direct investment to the region is forecast to strengthen to around US$46 billion in 2018.

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The Uganda National Roads Authority (UNRA) improvement of its in-house capacity has already saved it over Shs 215 billion that would have been paid to external service providers, its Executive Director Allen Catherine Kagina, has said.

According to Kagina, who was presenting to the media the half year performance report of finance year 2017/18, UNRA improved its capacity in supervision and saved on roads (Shs20.7bn); bridges (Shs65.67bn); land acquisition (13.99bn); design (Shs44bn); legal (shs46.27bn) and audit (24.2bn).

Kagina said UNRA, which is allocated trillions of shillings, was doing its best to ensure that the resources allocated are efficiently utilised and that there is Value for Money for all stakeholders.  She urged the public stop bad acts like vandalism, road reserve encroachment and abuse of road facilities.

She also said there had been a 23 percent growth in passengers using ferry services.

“UNRA…has started the construction of a ferry to Sigulu Islands,” she said, adding that the agency is the process of establishing of ferry services on Bukungu-Kagwara-Kaberamaido (BKK) route to connect Teso and Busoga regions through Lake Kyoga.

“We are also repairing the Bukakata ferry,” she added.

Speaking about road construction, Kagina said government has re-instated the contracts of firms that were working on 104 km Musita-Lumino-Busia/Majanji Road and 102 km Nakalama-Tirinyi-Mbale Road which were behind schedule by 70 percent and 60 percent at the time of the termination of contracts.

This was after President Museveni directing mid last year that UNRA  allow the firms continue with the works on the two roads, stating that he was receiving complaints from politicians and residents in the districts where the roads pass.

Dott Services was working on the Nakalama-Tirinyi-Mbale Road, and early this year the President, for the third time, again directed UNRA to reinstate its suspended contract.

“After an appeal by the affected contractors, with a pledge to mobilise and execute their contracts more effectively than before, Government made consideration and took a decision to re-instate them on the two respective projects. UNRA is now taking steps to ensure that the projects are implemented strictly in accordance with the terms and conditions of their contracts and in the quickest time possible,” Kagina said of the companies.

Meanwhile, the report shows that UNRA is working on nine bridges whose progress is at different stages but five of these are expected to be completed by end of the current financial year. They include the Second Nile Bridge, Manafa Bridge on Tororo-Mbale Road, Seretiyo and Nyali Bridge in Kapchorwa, Aswa Bridge and Cido Bridge in Nebbi whose works stand at 58 percent, 100 percent, 80 percent, 99 percent and 86 percent respectively.

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Airtel Uganda has today announced a major milestone in its operations; becoming the first telecom operator in Uganda to have all its sites across the country enabled on the 3G mobile broadband.

The upgrade in technology to 100% mobile broadband means that all Airtel Uganda subscribers will now have access to high speed internet, regardless of their geographical location.

The announcement was made this morning at an event presided over by the Prime Minister Ruhakana Rugunda at the Kampala Serena Hotel.

Addressing guests, Airtel Uganda Managing Director, VG Somasekhar said that the network upgrade to countrywide broadband coverage is part of the company’s vision to empower Uganda with connectivity to high-speed internet which will drive economic growth and social development.

“Airtel Uganda has invested $50m USD in this financial year 2017/18 with a goal to ensure Uganda is 100% mobile broadband in the next 4 months. Currently 154 new sites are being rolled out. An additional 165 sites are under implementation with an objective to enhance rural capacity and coverage thus providing an unmatched internet experience to our customers,” he said.

Somasekhar also noted that the company had recently launched new data blasta bundles that will give Airtel users a customized, simplified and affordable internet experience.

“The new data blasta bundles are priced to meet the different needs of all Airtel customers; whether daily, weekly or monthly,” he said.

In his speech Prime Minister Rugunda said that was a remarkable development both for the ICT sector and for the country.

“By enabling national broadband internet connectivity, Airtel Uganda will empower millions of Ugandans by granting them access to both the basic functions of mobile telephone technology and the advanced functions which include internet connectivity,” Dr. Rugunda said.

“The government of Uganda has taken on several projects aimed at expanding and improving the ICT sector. While it is our mandate to enable these advancements, we are aware of the role played by strategic partners like Airtel Uganda. We are honored to witness your efforts as we move to modernize our country through digital advancements,” he concluded.

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The Uganda National Bureau of Standards (UNBS) Executive Director Ben Manyindo has today said that as a measure to protect the health and safety of consumers, the bureau stopped 16 million substandard products from being imported into the country.

Dr. Manyindo, who was making a half year performance at Uganda media Centre, also said that the UNBS seized about 232 metric tonnes of substandard goods worth Shs1.7 billion from the local market.

The goods included among others, steel bars, iron sheets, assorted food stuffs, energy savers, extension cables, cosmetics, agro-inputs, sweets, cooking oil, second hand tyres, beers, paint and maize flour.

Last year UNBS developed 254 standards mainly to support the implementation of the Buy Uganda, Build Uganda (BUBU) Policy for enabling Micro Small and Medium Scale Enterprises (MSMEs) to develop competitive products.

According to Dr.  Manyindo, in addition to the standards developed, 467 certification permits were issued to enhance the quality and competitiveness of locally manufactured products.

“UNBS continued to focus on developing standards that contribute to the competitiveness of local industries and supporting the economic development of our country through support for growth of exports,” Dr. Manyindo said.

He said the UNBS also automated its imports clearance processes to facilitate faster clearance of goods which improved the turnaround time from 11 days to five days.

“We hope to further reduce the turnaround time by facilitating pre-arrival clearance of inspected goods with data from Pre-export Verification of Conformity (PVOC) service providers,” Dr. Manyindo said, adding that between July and December last year, under the PVOC, the UNBS inspected 4.6 billion products, with 4.2 billion products passing the test while 16 million products failed.

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A list of traders meant to receive US$42 million compensation over losses incurred due to the civil unrest in South Sudan has put officials of the Ministry of Finance Planning and Economic Development and those from the Ministry of Trade at loggerheads, with the former accused of creating ‘ghosts’ to benefit from the initiative.

The rift came to light during a meeting held between legislators on the Committee Trade and Tourism and officials from the Ministry of Trade, Industry and Cooperatives led by Minister Amelia Kyambadde, who said a verification list submitted to the ministries of finance and foreign affairs was fraudulently altered to include non-traders.

Kyambadde explained that the compensation figure had been put at US$42 million, approximately Shs152, 490, 580, 899.

“The President (Museveni) came up with that directive and David Bahati, State Minister for Planning said the Ministry of Finance is going to pay, but there was also a problem of manipulation of that list which I don’t want to go into here and it was manipulated from that end, so if they are going to pay, we also have to make sure that we have the same list,” Kyambadde told the MPs who were scrutinizing the Budget Framework paper of 2018/2019 for the trade ministry.

It should be recalled that following the on and off unrest in South Sudan that started in 2013, President Museveni directed the Ministry of Finance in March 22, 2016 letter, to establish how government would raise money to rescue the businessmen, as Government continued with efforts to recover the money from the South Sudan.

Kyambadde’s revelation prompted MPs Alex Ruhunda of Fort Portal Municipality and Godfrey Macho of Busia Municipality to demand the list to be made public.

It was Macho who reported that the Ministry of Finance had replaced traders with top politicians and threatened to expose the officials.

“The information I have is that Ministry of Finance has smuggled some traders who aren’t supposed to be on that list and I hear they are politicians,” Macho said.

He added: “As a Committee, we must know the interest before because we have talked many times that there are some smuggled companies that haven’t been doing business in South Sudan that is why Ministry of Finance isn’t straight on that matter. In fact Minister when you meet the President, tell him that the Ministry of Finance is playing tricks. If they disturb you, bring them here, we shall expose them.”

A meeting between the two Ministries and Legislators is slated to be held on Tuesday next week to discuss the matter.

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With less than two weeks left to the opening of the first school term of 2018, the UMA Back to School Expo/Bazaar is on for five days starting Wednesday at KCCA grounds in Lugogo, Kampala.

The Uganda Manufacturers Association (UMA) Executive Director Daniel Birungi says the event will help local manufacturers and other interested exhibitors to engage directly with the public, in a bid aimed at encouraging Ugandans consume locally made products in support of the Buy Uganda, Build Uganda (BUBU) agenda.

According to Birungi, the Expo has been organized to provide a one-stop shopping experience for parents ahead of the school opening on February 5, 2018. The exhibitors lined up represent sectors including foods and beverages, healthcare, textiles, personal care, toiletries, stationery, plastics and foam products.

Others include confectionery, dairy, banking and Insurance services, education services, design, publishing, and general merchandise.

The Expo also features career guidance and skilling sessions, raffles, a medical camp, and a dedicated children’s play area that will help to draw more visitors.

Birungi says entry to the Expo is free, a major factor in attracting more visitors.

“We anticipate receipt of 20,000 show visitors daily who will be mainly parents and students looking to fulfill their back to school requirements,” Birungi says.

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