As Uganda joins the rest of the world to mark the financial inclusion week, it has been revealed that over 400,000 Ugandans initially excluded from financial services currently have access to the same.

This was revealed by the Executive Director of Financial Sector Deepening Uganda (FSDU), Jacqueline Muna Musiitwa at a financial inclusion symposium held at Serena International Conference Centre, that was attended by several top officials from various banks and financial institutions including the State Minister of Trade, Cooperatives and Microfinance.

“I can proudly say that with generous support from the UK government, through the Department for International Development, FSDU has become a key facilitator and leader in the effort to make the financial services sector work for all Ugandans. Since its establishment as a company in 2015, FSDU has continued to grow and innovate to best serve Uganda and as such has built up capacity to bring about change in the way of doing business. We don’t do this alone. Through our partners, we’ve impacted the lives of over four hundred thousand men and women who were previously excluded individuals by giving them access to a suitable and affordable formal financial services product,” Ms Musiitwa told the guests.

She further added that FSDU has managed to support innovation for over 2,500 micro and small to medium enterprises through alternative credit scoring, microfinance solutions and better record keeping and financial management practices.

“These are businesses fighting not only to survive but to thrive and through our support, now have a chance at improving their livelihoods. But beyond the numbers, our goal is in collaboration and partnership to make the financial markets work for the poor. For too long, the bulk of Uganda’s population has depended on the good will of others.

“But we believe that there’s not only unbelievable potential in the entrepreneurial spirit of the people in the Pearl of Africa but there is a sound business reason to tap this potential, not tomorrow but today. The latest Fin scope study, a financial services landscape survey pioneered by FSDU and used by several public and private institutions, shows that only one in every five adults (representing 3.3 million adults) had a formal account of some nature in formal banks or nonbank formal intuitions. We must do better,” she said.

According to Ms. Musiitwa, the FII tracker from the Gates Foundation shows that 6 in 10 Ugandans are financially excluded.

“This means they have no access to formal or non-bank financial services. As we prepare to carry out the next Fin scope survey, we expect this number to have improved, but work remains to be done. We must do better. We will do better,” she noted.

“The challenge before us is not an easy one, but together, through sound design, innovative risk taking and efficient government policy, I believe that we can get there. FSDU is here to provide the support that you as regulators, policy makers and private sector financial service providers may require in maximizing not only your own potential but that of all Ugandans,” Ms. Musiitwa added.

Speaking on behalf of government, the State Minister of Trade Michael Werikhe lauded FSDU for complimenting government to ensure that most Ugandans have access to financial services.

“I commend FSDU for addressing one of the key challenges to Uganda’s SMEs.”

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Telecommunication service providers are beginning to bow to the demands of their customers, with Airtel Uganda the first company toreduce prices for its internet bundles.

According to Airtel Uganda, it is introducing the cheapest data bundles dubbed Data Blasta, a new two-month promotion that is part of an overall effort that has seen Airtel Uganda launch 4G LTE services, revise existing data bundles and establish new network sites across the country.

As part of the promotion, the the Shs2,000 daily bundle of 150MB has been doubled to 300MB while the Shs5,000 bundle has been increased from 450MB to 1GB, both valid for three days.

“Reliable and affordable telecommunications services are no longer a luxury in an emerging economy like Uganda. Through this promotion, we want to ensure that all Ugandans, across all segments – whether youth, young corporates or any other segment – have full access to affordable internet services,” said V.G. Somasekhar, the Airtel Uganda Managing Director.

Below are the new data packs

For Shs2,000, one can will get twice the data bundle that was initially offered. Shs2000 one will receive 300MB up from 150MB.

Shs5,000 one will receive 1GB up from 450MB.

This new promotion comes a few weeks after Airtel Uganda revised data bundles, especially the weekly and monthly subscriptions, in a bid to increase the value offered to customers.

As part of the data bundles revision, daily bundles were cut to as low as Shs250, weekly bundles of 100 MB to Shs2,000 and monthly bundles to as low as Shs1,500.

Somasekhar added that Airtel Uganda data bundles will remain affordable even after this two-month promotion.

“Affordability is key at Airtel Uganda; I therefore want to assure our subscribers that our data bundles will remain affordable even after this two-month promotion,” he added.

To access the new data bundles, simply dial *175*2#.

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Ugandan farmers are set to enjoy an extra market share after the European Union committed to cut agricultural export subsidies in early 2018, in line with a 2015 World Trade Organisation (WTO) landmark ministerial decision made in Nairobi, Kenya, to eliminate farm export subsidies.

The EU ranks second in Uganda’s export destination, with exports valued at US$443 million in 2015. Most of the exports are agricultural exports such as horticulture products and coffee.

In a statement, chair of the WTO agricultural committee, Alf Vederhus, said the EU is the second member to initiate the process of eliminating subsidies after Australia, giving chance to African countries like Uganda to export agriculture goods at competitive prices as long as they meet standards.

“The EU submitted, as part of the draft goods schedule for its 28 member states, a change of commitments incorporating the implementation of the landmark 2015 decision by WTO members to eliminate farm export subsidies,” Mr Vederlus said.

The EU’s 28-member states have issued a draft schedule showing that export subsidy cuts will take effect by the beginning of February if members don’t raise any objections.

Export subsidies entail credit and guarantee schemes extended to EU traders to make their products cheaper in foreign markets. The incentives include forex loss compensation, freight cost refund and total tax refund on exportable products.

The export subsidies are offered in addition to domestic support which is given to farmers to lower the production cost. Over the past decades export subsidies have enabled EU exporters to grow market share for its products in developing countries while exerting downward pressure on world market prices.

Under the 2015 Decision, WTO members agreed to abolish agricultural export subsidies and set disciplines on export measures with equivalent effect, levelling the playing field for farmers around the world.

The decision, apart from eliminating farming export subsidies, also introduced new rules regarding other types of farming export support, including export credits.

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After Kakira Sugar Works shelved plans to lay off 4000 employees, the workers have now turned to government urging it to ensure that Parliament passes the Sugar Bill now gathering dust in the shelves of the august house.

Henry Dramadri, the Kakira Sugar Works Jinja Branch manager, said the workers are not willing to vacate their jobs and instead want the sugar bill to be passed to save their jobs.

If the bill is passed, Dramadri said, it will  give room for Kakira Sugar Works to expand its sugarcane plantations as any sugar mills within the radius of 25 kilometres from the big factory will be given money to relocate on top of enjoying a five-year tax holiday. This will also be line with the sugar zoning policy that is advocated by President Yoweri Museveni, and KSW top managers say it operates at 50 percent due to lack of enough sugarcane to crush.

However, should the Bill be passed, the factory will be saved from the other smaller ones that have encroached on its territorial operation in terms of sugarcane, a key ingredient in the manufacture of sugar.

The dialogue between the Kakira Sugar Works managers and members of the National Union of Plantation and Agriculture Workers (Nupaw) in Jinja last week saved the workers from being sacked.

The company has 7500 employees, and is the largest manufacturer of sugar in Uganda, producing an estimated 165,000 metric tonnes of sugar annually, accounting for about 47% of the national output.

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