By Anthony Kituuka, Managing Director Equity Bank Uganda Ltd

The Ugandan national budget for 2024/2025 was approved by Parliament, with a total expenditure of Shs72.136 trillion. The budget consists of recurrent and development expenditure, with the largest portion coming from domestic revenue.

Other sources include budget support, domestic financing, project support, and domestic debt refinancing. The budget allocates Shs3.1 trillion for external debt repayment, Shs9.5 trillion for project support, Shs12 trillion for domestic refinancing, Shs9 trillion for interest payments, and Shs293.9 billion for appropriation in aid.

With GDP projected to grow by 6 percent this financial year 2023/24 compared to 5.3 percent in FY2022/23, this year’s growth of 6 percent is even more impressive when compared to Sub-Saharan Africa’s average of 3.8 percent, and the global average of 2.9 percent projected for the year 2024.

Uganda’s growth strategy for next financial year and in the medium term is anchored on four key growth drivers: (i) Agro industrialisation; (ii) Tourism development; (iii) Mineral development including oil and gas; and (iv) Science, technology and innovation (STI).

I find a lot of resonance with these growth pillars as they mirror our own Africa Recovery and Resilience Plan (ARRP) that was launched in 2020 to accelerate growth post-COVID-19 and continue the economic and social recovery after the pandemic.

The ARRP comprises 6 strategic pillars that are entrenched in: a) a more coherent and productive natural resource ecosystem in agriculture and extractives, b) manufacturing and logistic anchors c) Trade and investment to give broader market access and support factor mobility d) MSMEs e) Social and environmental transformation and f) Technology-enabled economy.

Looking at the budget as a banker, there are several opportunities we can all take advantage of. First, one needs to read the budget from end to end to fully understand it; and understand it they must from a sector-to-sector point of view. The budget is anchored on the tenfold growth strategy and presents a multitude of opportunities and interventions to improve the business environment further.

Secondly, there are some measures taken by the Government for enhanced tax administration and rationalisation of tax exemptions in line with the Domestic Revenue Mobilisation Strategy. An imposition of excise duty at a rate of 0.5 percent of the value of withdrawals of money from other platforms other than mobile money (this does not apply to withdrawals from agent banking or banking halls) will fully support the digitisation policy put in place by the Government and Bank of Uganda to promote cashless banking. This will fully support other incentives put in place for financial deepening.

Thirdly, the Government has provided tax holidays on the income of a person who develops, establishes or operates a medical facility or hospital facility. Investment in health is one that we have seen is important to provide much-needed medical services; through Equihealth, an affordable medical insurance cover targeting individuals in a group, allowing them to get coverage for themselves and their families.

Fourthly, the Government has extended the waiver of penalties and interest on arrears outstanding by June 2023; this waiver will apply when the taxpayer pays between July and December 2024. We believe that this will unlock the much-needed cash flows of many businesses indebted to the state. I implore all businesses with penalties and arrears due to URA to take advantage of this incentive and use this money to recapitalise their businesses for more success in the coming year.

However, the introduction of a 10 percent withholding tax on commission paid to the banking agents and fintech agents (payment service providers) will reverse the gains made on agent banking; these services have been pivotal in the administration of banking services to millions of customers in Uganda who cannot physically access bank branches.

As a parting note, the Ugandan economy has shown resilience over the last four years: from Covid-19 to post-Covid-19 shocks and then the Russian–Ukraine war coupled by global supply chain shocks and instability in global oil prices. We firmly believe, in line with our ARRP, that to ensure continued social and economic development on the continent and ultimately realize Africa’s nascent economic opportunities, local private sector will need to play a more prominent and intentional role in the recovery and resilience of the African continent.

Equity Group’s corporate strategy, as an African-grown and African-focused plan, is to be a catalyst of wealth transformation for the African continent. The plan ultimately aims to capacitate, finance and connect East African Community value chains to global supply chains.

As Matia Kasaija, Minister of Finance, Planning and Economic Development, said in his closing statements: “Let every adult Ugandan engage in producing a good or a service for sale. That way, we shall be able to create a bigger pie for the greater good of our country”: let us all engage in wealth creation for economic and social empowerment of ourselves, our people and our generations.

Stories Continues after ad

By Mike Ssegawa

Masaka’s self-professed ‘favourite son’ has organized a holy mass to be led by none other than the Kampala Archbishop Paul Ssemogerere. There is however a group claiming those attending this church service are in for an unholy event. As the Masaka group says – no one should blasphemy a sacred activity – one wonders what’s up the sleeves of church leaders as the country debates the pros and cons of the Kitovu event.   

The big question is; after accusations and counter accusations among National Unity Platforms rank and file, one realises that the holy eucharistic at the Kitovu Sports Arena will be graced by sinners or saints – politically – however, didnt Jesus come down for sinners?

Uganda must be returning to its shackles with politicians retreating back to religion and tribe, ideological bankruptcy is increasingly being replaced with sentimental groupings and petty fights.

Masaka could have been blessed with a special catholic church mass in honour of Nyendo Mukungwe legislator, the former Leader of Opposition, Mathias Mpuuga Nsamba, if he had anything to celebrate and not his headline grabbing money heist characterizing parliament in recent years.

It is expected holymen and women in political, culture, religion, business, and other walks of life, are going to attend this make-or-break event for Mpuuga to save him from sinking into political oblivion – after his severe fall out with Bobi Wine, a disruptor, who has thrown politics in the country into turmoil due to his lack of ideological clarity but kicking every glass in the room in the name of checking their durability.

One Masaka priest is filmed asking ironically if the church was celebrating Mpuuga’s loot or cleanse it! It sounded like a disapproval in the decision of the Catholic church leadership to lead such a high-profile mass amidst the controversy Mr Mpuuga finds himself in. I understand however that in the catholic church rites, the sacrament of penance proceeds every mass.

However, NUP headed to Masaka, and NUP against the mass in Kitovu, are both suffering agony – as they are stuck faced with such a dilemma.

Mpuuga’s party, the National Unity Platform, has distanced themselves and dissuaded their support from the Masaka Mass. Never has a catholic leader in Uganda campaigned a church service.

It remains to be seen if Kyagulanyi aka Bobi Wine’s portrayal of Mpuuga as ‘corrupt’ and ‘insubordinate’ and his running into the church to rebrand himself, would save the day! Arguments for and against the so-called ‘service award’ – have been made, culminating into the suspension of the defrocking of Mpuuga, a once respected politician, now, baptized on the social media street as a ‘common thief’.

Whereas Mpuuga has been adamant in remaining a Commissioner in Parliament as per his appointment after the removal, however, NUP has been clear – he no longer represented the party in the Parliamentary Commissioner. His stay has become both a moral question and a further portrait of shame on the image of ‘Honorable’ Mpuuga. Many analysts agree that whether Mpuuga and co felt legally entitled to give themselves the funds – the moment it was raised publicly it was incumbent on them to step aside and allow themselves to be properly investigated.

NRM has gone ahead in their last central executive committee meeting to agree to reshuffle the committees of parliament. The move gives the NRM commissioners a smooth exit from the commissioner before they get soiled like Mpuuga.

It should have been the case the moment fingers pointed at them that they had dipped their hands into the jar – a puzzling development albeit showing their insensitivity to the plight of Ugandans in terms of strained resources from the donor community and taxpayers’ complaints.

President Museveni has now and again highlighted corruption in his many speeches, as a cancer eating away the gains of Uganda. In his state of the nation address this year, he promised to deal with the corrupt. The current arrests of MPs associated with budgeting-linked corruption have sent shivers into the spine of Ugandans. Without forgetting the near past, iron sheets scandalous leaders were equally punished with prosecution as well as politically being removed from parliament. This was a reminder of the President’s awareness of the plight of Ugandans.

We have also seen the State House Anti-Corruption Unit running its operations weekly around the country – arresting especially local government leaders frustrating service delivery to the common wananchi.

So, Mpuuga and co, now bitter rivals with NUP ranks, have a weekend to show Ugandans what next. However, whether he is starting his own party, or wants to show off his huge numbers, remains to be seen.

However, for a good mass to start well – some few things need to be observed. One, Jesus came to redeem sinners – not the saints. So, the two holy and ungodly groups in NUP will need to agree on which sides they belong.

Last but not least – every Holy Mass should start with a good confession so that he can reach the holy table to receive Jesus’ body and blood with clean hands and a beautiful heart.

Mpuuga’s confession will go a long way in showing Masaka as indeed a holy site of Uganda’s saints. His was a moral issue – not just a legal question. And, who knows, it will take Mr Mpuuga and Mr Kyagulanyi, as high priests of their political party, to tell who of the two shall tell the truth behind their fight and why they are setting venues for their fight inside church walls, following a bitter confrontation on social media streets. 

And if there’s a chance for NUP’s saints and sinners to do a favour to the nation is joining President Museveni to fight the corruption vice. This is a challenge in our midst – something we must fight as a people of in this country – and not pointing fingers at each other with the holier-than-thou attitude.

 Mike Ssegawa is a journalist and deputy RDC Mukono. 

Stories Continues after ad