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Museveni, city traders to meet over EFRIS

By
Geoffery Serugo
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Traders listening to President Museveni during the first meeting at Kololo.

President Yoweri Museveni is this Thursday expected to meet city traders under the umbrella bodies of the Kampala City Traders Association (KACITA), Uganda Cargo Consolidators, and Kampala Rice Traders on the implementation of Electronic Fiscal Receipting and Invoicing Solution (EFRIS).

The meeting is aimed at assessing the processes implementing EFRIS. City traders decried over taxations and penalties arising from failure to remit VAT and the Chinese invasion of the local markets.

The business community protested the system, closing shops in Kikuubo and downtown, claiming double taxation and lack of information about the system. They stated that the system is costly in terms of implementation since it requires devices like computers or smartphones and a gadget for printing receipts.

They contend that high import values (old ones) are making it hard for traders to clear their goods and that the high cost of living means that most of the essential goods are becoming unaffordable to the common man.

 URA started implementing EFRIS in 2021 to address tax administration challenges relating to business transactions and the issuance of receipts. The system helps URA assess the right taxes using accurate and authentically generated information. It also enables businesses to thrive with improved record-keeping and monitored stock and sales, among others.

The implementation of EFRIS will ensure not just equity in tax collection, especially VAT, but also transparency. The system is expected to double total VAT collections from Shs3.5 trillion to about Shs7 trillion.

Tanzania and Rwanda adopted EFRIS over 10 years ago. These countries collect 33% and 30%, respectively, of their total tax revenue through VAT. Uganda is currently collecting about 15% VAT of its total tax revenue, and this amounts to Shs3.5 trillion.

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USE: Vote of confidence in MTN Uganda as it meets 20% public float requirement

By
Francisco Adongo
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MTN-Uganda CEO, Mulinge and Board Chairman, Charles Mbire share a light moment after announcing dividends.

MTN Uganda has attained a public float of 20 percent at the Uganda Securities Exchange (USE) and the giant telecom company in the country is now fully compliant with the minimum public float requirement set out in rule 32 (7) of the USE rules, 2021,

The purchase of all the shares, according to officials, is a vote of confidence in MTN Uganda but also amplifies investor confidence in Uganda’s equity market and by extension boosts the market capitalisation of the stock exchange, given the strongest subscription rate of 230 percent.

In 2021, MTN listed 20 percent of its shares on the USE with a 12.97 percent public float from the Initial Public Offering (IPO) and the company provided an undertaking to the USE that the remaining 7.03 percent would be completed by December 5, 2024.

The latest development comes after the company’s completion of its secondary market offer for the purchase of shares which ran from May 27, 2024, to June 10, 2024.

During the announcement of results from this secondary market offer for the purchase of shares at the MTN headquarters in Kampala, USE Chief Executive Officer Paul Bwiso revealed that they approved the company to be voluntarily suspended for two weeks from the USE to give Ugandans an opportunity to participate, look at the fundamentals of the company, the incentives shares that were provided and the dividends that were part of this offering from which they saw a lot of positive results in terms of participation. 

“MTN’s market capitalisation is Shs3.8 trillion out of the total local market capitalisation of Shs11.8 trillion. That gives MTN a 32.3 percent contribution to the local market capitalisation and this growth has been signified in the trading turnover we have seen at the exchange from IPO,” he said.

In the same vein Grace Semakula from SBG Securities, the lead sponsoring broker on behalf of MTN Uganda noted that in total, 157,4807,373 shares were offered by MTN to the market and the preliminary results indicate a subscription rate of 230 percent making it the strongest subscription they have received from issuance in the local market. This performance translates into an over-subscription of 130 percent, he said.

“We have received several applications from both existing and new investors and the company’s shareholder base has grown to over 20,000. With strong retail participation in this offer, we have seen an average retail participation of Shs13.4 million invested per average retail applicant,” said Semakula.

On his part, MTN Uganda chairman Charles Mbire commended the success of the recently concluded secondary market offer which he said in addition to being oversubscribed, has resulted in approximately 19,600 Ugandan investors owning a stake in the company that employs many Ugandans, on top of paying taxes.

“We are proud to have helped facilitate the broadest possible shareholder base in Uganda, with regional participation and in so doing, further developing the equity capital markets in this country.”

For her part, MTN Uganda Chief Executive Officer, Sylvia Mulinge said that the company’s old investors on the register as of June 12, 2024, and the new investors who participated in the secondary offer are eligible for the next dividend payment worth Shs143 billion translating to Shs6.4 per share which she said will be paid by June 25, 2024. This will bring the total dividend the company has paid to its shareholders since the IPO in December 2021 to Shs864 billion.

This is a very big boost for MTN-Ugandaif you add the achievement of paying Shs1.1 trillion for the year 2023.

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Corruption: Court commits three embattled MPs for trials

By
Our Reporter
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MPs Mutembule and Namujju at Court.

Embattled Lwengo district woman MP, Cissy Namujju and Bunyole East county MP Yusuf Mutembuli have been committed to High Court for trial.

Their committal followed the conclusion of investigations into the matter. Meanwhile, their counterpart Busiki County MP Paul Akamba didn’t show for court proceedings. 

Akamba was released last Friday granted Shs13 million after spending two days at Luzira prison.  

According to his lawyers led by Bugiri Municipality Asuman Basalirwa, Akamba has not been acesed following his re-arrest.

The three were nabbed on June 10, 2024 after they had been summoned to record statements about corruption-related allegations. The group was quizzed and later detained at Kira Police Divisional Headquarters, where they spent two nights. 

They were later arraigned before the Anti-Corruption Court Chief Magistrate Joan Aciro and charged with corruption and influence peddling.

The prosecution alleges that while at Hotel African on May 13, 2024, the three solicited a bribe from the executive director of the Uganda Human Rights Commission, Mariam Wangadya, to enhance the commission’s 2024/25 budget. The group would take 20% of the enhanced budget.

The trio pleaded not guilty and subsequently remanded to Luzira Prison.

Their arrest followed President Yoweri Museveni’s remarks revealing that there is a racket of people in the ministry of finance and parliament taking bribes to approve the budgets of various government agencies.

“I have been getting good information about corrupt actors not only among public servants but also among political actors. With some evidence, we shall crush these traitors.” Museveni said.

“I have been hearing, but now I have proof. I have been hearing from the Ministry of Finance; they arrange for accounting officers of ministries to come to parliament. Working with some people there to provide certain funds, provided you take a share, I didn’t believe it, but now I have proof,” Museveni said.

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EACOP encounters obstacles as financiers delay loan disbursement

By
Our Reporter
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The East African Crude Oil Pipeline (EACOP) project has encountered a significant obstacle as Chinese financiers, Exim Bank and Sinosure, have failed to disburse the agreed-upon loans, totalling $3 billion.

This delay has resulted in a substantial financing gap, putting the project’s timeline and viability at risk.

“The delay in securing the Chinese loans has put us in a difficult position,” said a senior official at the Uganda National Oil Company (UNOC). “We are working tirelessly to finalize the agreements, but the delay has already impacted the project’s progress.”

Despite a year of negotiations, the loan agreements remain un finalized, leaving the project’s shareholders, including TotalEnergies, UNOC, Tanzania Petroleum Development Corporation, and CNOOC, in a precarious situation. The project’s physical works, currently at 33% completion, are now under threat due to the lack of funds.

“This project is crucial for the region’s economic growth, and we cannot afford to delay it further,” said a spokesperson for TotalEnergies. “We urge the Chinese financiers to expedite the loan disbursement to avoid any further setbacks.”

UNOC has stepped in to mitigate the crisis, injecting $35.38 million into the project this month. However, this amount is merely a fraction of the required funds, highlighting the urgency of the situation.

“We are doing everything possible to keep the project on track, but we need the Chinese loans to materialize soon,” said the UNOC official.

The EACOP project, a 1,443-kilometer pipeline aimed at transporting crude oil from Uganda’s Lake Albert to Tanzania’s port of Tanga, is a critical infrastructure project for the region. The delay in securing the Chinese loans has raised concerns about the project’s future and the potential impact on the regional economy.

As the project faces this critical juncture, the delay in securing the Chinese loans has put the spotlight on the challenges of international financing for large-scale infrastructure projects in Africa.

“This incident highlights the risks and uncertainties associated with relying on international financing for critical projects,” said Dr. Elsie Sifa, an energy expert at the African Energy Institute. “Africa needs to develop its own financing mechanisms to reduce dependence on external funding.”

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Filmmakers urged to seek mentorship and prioritise collaboration

By
Our Reporter
-

While addressing filmmakers at MoTIV on Friday, Richard Mulindwa – a multi-award-winning film producer, writer, and director called for mentorship among young actors, directors, and producers as the lack of it hinders the quality of the productions they embark on.

“We are losing a lot of talent because of inexperienced directors in Uganda. Some people know how to write scripts but will wake up one day and decide to direct without understanding even the basics of directing. As a result, many actors will end up staying at the same level because a director’s job is to push actors and get them out of their comfort zone so that they can improve their skill and delivery,” he said.

The filmmakers gathered at MoTIV for the first of MoTIV’s Creative Fridays Sauti Plus Takeovers – an initiative of MoTIV, the SautiPlus Media Hub, and Reach A Hand Uganda and a platform for creatives in the film industry to connect, learn, collaborate, and network under the theme: “Navigating creative film production”.

The platform is an opportunity for creatives to showcase their work while engaging with their vibrant communities and featured talks from Mulindwa (Production and Directing); Stella Nantumbwe (Acting); Rehema Nanfuka (Screenwriting) and; Tony Kastimo (Sound Production for Film).

Rehema Nanfuka – a film, theatre, and TV actress, director, and filmmaker known for her roles in Veronica’s Wish, The Girl in the Yellow Jumper, and Queen of Katwe, said, “When creating stories, do not go the common route. Try to use a different unexpected route such that you can stand out from the rest. And when it comes to pitching your scripts, create a writers’ room because pitching as a group takes you further while pitching alone is less impactful. There’s more magic in multiple people pitching an idea.”

Humphrey Nabimanya, an Executive Producer and the founder of Reach A Hand Uganda and SautiPlus Media Hub emphasised the importance of sharing knowledge, connecting, and networking as a way of investing in and building the local film industry.

He added, “Let’s not create films because of awards but because we want to create a sustainable impact in Uganda’s film and creative industry. As SautiPlus, our vision is to build a streaming platform and proper warehouse studios in addition to creating more spaces for filmmakers to learn, dialogue, and work together to take our industry to global standards.”

SautiPlus Media Hub is a full-service communications agency and production house that is behind productions like Sabotage (2024), When You Become Me (2023), and the Kyaddala TV series (2019-). In March 2023, they were officially licensed by the Uganda Communications Commission to exhibit and distribute audio and visual film and video works in Uganda as a national distributor and exhibitor.

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Why Museveni believes oil revenue will reduce Uganda’s external debt

By
Editorial
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President Museveni.

President Yoweri Museveni has revealed that Uganda will earn US$2 billion per annum once oil production starts in 2025 and the revenue devoted to infrastructure and science development.

Museveni said investing $2 billion in the two sectors will significantly relieve the government of external borrowing and external debt.

Museveni made these assurances after the Minister of Finance Matia Kasaija delivered the 2024/2025 budget to the House at a sitting chaired by Speaker Anita Among at Kololo Independence Grounds on Thursday, June 13, 2024.

According to the Ministry of Finance, Planning and Economic Development Uganda’s debt burden stands at Shs93.38 trillion as of December 2023. Out of this, Shs55.37 was external debt which the President said should cease.

“If the NRM will be in charge, we shall use the oil money for strategic items such as infrastructure and science development; this business of borrowing should stop,” Museveni emphasised.

Museveni said that the government will invest the revenues from oil in infrastructure such as the Standard Gauge Railway which will enhance Uganda’s potential to create wealth and reduce borrowing.

In the 2024/2025 financial year, the government has allocated over Shs920 billion for the oil and gas sector to realise the ‘first oil’.

 Kasaija said this is possible with the progress made in the construction of East African Crude Oil pipeline (EACOP) project where 500km of pipeline have been delivered in Tanzania.

Kasaija added that in the new financial year, the government will focus on developing an EACOP hub in Tanga and continuous construction of the pipeline.

In addition to the oil sector, tourism, mechanised agriculture and minerals development were highlighted as key drivers to catapult the size of the economy to $500 billion in the next one and a half decades.

“We are lucky we have the rains but sometimes we get less rains and get into food crises. We must have complementary agricultural arrangements, such that when rains do not come, there is a standby irrigation system,” the President said.

Some of the army representatives in Parliament salute as the anthems are played

Speaker Among on her part urged members to avoid any inducements and called on accounting officers to report cases of extortion.

“We have urged accounting officers to share with the leadership of the legislature any incidences of influence peddling. However, we have not received any such information. We urge accounting officers to maintain open channels of communication with the leadership of the legislature in pursuit of greater transparency and accountability,” Among said.

She called on legislators to walk in accordance with the code of conduct prescribed for them and uphold integrity of the rule of law.

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Corruption: Court further remands two legislators, releases MP Paul Akamba

By
Our Reporter
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The three legislators in the dock.

Lwengo District Woman MP, Cissy Namujju and Bunyole East County MP Yusuf Mutembuli, have been denied bail for lack of substantial sureties. Meanwhile, court released their counterpart, Busiki County MP Paul Akamba.

The three were nabbed on Monday after they had been summoned to record statements about corruption-related allegations. The group was quizzed and later detained at Kira Police Divisional Headquarters, where they spent two nights. 

They were later arraigned before the Anti-Corruption Court Chief Magistrate Joan Aciro and charged with corruption and influence peddling.

The prosecution alleges that while at Hotel African on May 13, 2024, the three solicited a bribe from Chairperson of Uganda Human Rights Commission, Mariam Wangadya, to enhance the commission’s 2024/25 budget. The group would take 20% of the enhanced budget.

 The trio has pleaded not guilty and subsequently remanded until June 14, 2024. Through their lawyers, led by Bugiri Municipality MP Asuman Basalirwa, the three applied for bail.

Appearing before court earlier today, Namujju and Mutembuli were denied bail, while Akamba was granted Shs13 million cash bail and his sureties were bonded for Shs200 million in non-cash bail each. The two were further remanded to Luzira prison until June 17, 2024.

 Their arrest followed President Yoweri Museveni’s remarks revealing that there is a racket of people in the ministry of finance and parliament taking bribes to approve the budgets of various government agencies.

 “I have been getting good information about corrupt actors not only among public servants but also among political actors. With some evidence, we shall crush these traitors.” Museveni said.

“I have been hearing, but now I have proof. I have been hearing from the Ministry of Finance; they arrange for accounting officers of ministries to come to parliament. Working with some people there to provide certain funds, provided you take a share, I didn’t believe it, but now I have proof,” Museveni said.

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The 2024/25 national budget is huge because Uganda’s economy is growing bigger –PS Ggoobi

By
Simon Kabayo
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Mr Ggoobi addressing the post budget retreat.

The Permanent Secretary in the Ministry of Finance and Secretary to the Treasury, Mr Ramathan Ggoobi, has noted that the 2024/25 national budget is huge because Uganda’s economy is getting bigger.

Speaking during a post-budget dialogue at Kampala Serena Hotel on Friday, Mr Ggoobi said the tax paid by Ugandans (projected at Shs32 trillion next FY) is the primary source of financing the budget, in addition to budget support, domestic borrowing, petroleum fund, local government revenue and projects.

“Every year, we make the biggest budget in Uganda’s history. The reason for that is because Uganda’s economy is getting bigger. This budget is not only big, but it is also a good budget. It is a big, good budget,” he said.

Ggoobi said the above sources account for about Shs52 trillion, adding that the balance of about Shs20 trillion on the Shs72 trillion budget is not money to spend.

He said this includes the Shs7.8 trillion debt the government owes to Bank of Uganda to be settled through issuance of bonds to mop up excess liquidity in the market and Shs12 trillion for debt refinancing of maturing debt (debt rollover) which will only require payment of interest.

“You (Ugandans) are doing very well. I do not know why you think you are the worst. You are doing very well right from the macros and debt levels and among the EAC, only Tanzania has better numbers,” Ggoobi said.

He reiterated the priorities of the government for next FY, which are investing in the people of Uganda through health, education, water, sanitation and hygiene (Shs10.2 trillion), peace and security (Shs9.1 trillion); maintenance of infrastructure and construction of few critical roads and standard gauge railway (Shs5 trillion).

Others are investing in wealth creation initiatives (commercial agriculture, value addition, capitalizing UDB, PDM, Emyooga, Agriculture credit facility (ACF) etc (Shs2.64 trillion); transmitting and improving quality of electricity (Shs982 billion).

“We are very mindful and alive to the rampant misuse of resources in government by a few accounting officers and leaders. We are working and progressing well in strengthening our public financing management architecture,” Ggoobi said

“We have cut the purchase of new cars by the government. The swarm of cars you see on the roads is old stock. People were changing cars for fashion; ‘This one was for my colleague who left…’ we have stopped all of that,” he added.

PS Ggoobi urged the private sector including banks to support and benefit from key budget themes including but not limited to agro industrialisation, mineral development, tourism eco system among others.

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URA, clearing agents to sign MoU to streamline businesses

By
Francisco Adongo
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Uganda Revenue Authority is set to sign Memorandums of Understanding (MoUs) with various clearing agent associations to streamline businesses.

This development follows a recent meeting between Abel Kagumire, the Commissioner of Customs, and various heads of clearing and forwarding associations, where they discussed this prospect.

Currently, there are three registered clearing agent associations in Uganda, namely, the Uganda Clearing Industry and Forwarding Association (UCIFA), the Federation of Uganda Customs Agents and Freight Forwarders (FUCAFF), and the Uganda Freight Forwarders Association (UFA), all of which operate differently from URA.

While the East African Community Customs Management Act (EACCMA) recognizes the role of the clearing agent in the tax administration, it does not recognize the associations, thus the need for an MOU.

“Our past engagements have been informal, and we have relied a lot on institutional memory to work together, but with the new direction URA is taking, it is good governance to formalize this relationship, and the MOU offers this,” Alfred Okoya, the Manager of Legal and Bonds, explained.

Charles Ecweru, the Director General of FUCAFF, welcomed the concept of the MOU, stating that it will recognize and align associations.

“This is the beginning of a process that is much bigger than we know. It will provide a protocol—a guiding principle—to our working relationship with the tax administration,” he noted.

During the meeting, Kagumire encouraged the clearing agents to enroll in the Continuous Professional Development (CPD) training facilitated by URA to enhance their role in the supply chain.

“Most of our processes are now automated, and we are having issues with the declarations and responses from the clearing agents, so we need you to encourage your members to be part of the training,” he said.

He added that the training is paramount as it encompasses modules on both customs and domestic taxes.

Brenda Wenene, the Acting Assistant Commissioner of Trade, echoed the call, noting that it is crucial for the clearing agents to undergo the CPD trainings because the competency tests (which are conducted online) are no longer effective in measuring their capabilities.

“We need continuous training to update your skills so that when it comes to licensing, we consider the knowledge gained and capabilities shown. This will help us qualify clearing agents to work with our systems,” she said.

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Uganda records over $100m in trade surplus with neighboring countries

By
Simon Kabayo
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Mr. Vincent Bagiire, Permanent Secretary Ministry of Foreign Affairs.

Uganda has recorded an increment in trade surplus with its regional neighbours. The revelation was made by permanent Secretary Ministry of Foreign Affairs, Vincent Bagiire at the ongoing retreat for Uganda’s envoys.

According to Ugandan Ambassador Alhaji Farid Mansoor Kallisa, Head of Mission, Kinshasa, Uganda has a trade surplus with the Democratic Republic of Congo (DRC) amounting to $53.07 million (Shs208.9 billion).

The figures were presented at the Ring States Joint Regional Economic and Commercial Diplomacy Retreat happening at the Serena Hotel, Kigo. Kallisa said the surplus stands at $53.07 million, indicating Uganda’s dominant position in bilateral trade. He said that this has been facilitated by recent security improvements enabled by UPDF operations.

Uganda’s exports to the DRC include cereals, vegetable oil, refined petroleum oil, and salt, among others. The surplus also highlights the potential for further trade growth between the two nations, with opportunities for Ugandan businesses to expand their market share in the DRC.

Amb. Kallisa said the Uganda Mission in Kinshasa aims to build on this success through strategic engagement and trade promotion initiatives. This revelation is also corroborated by the Ministry of Finance Performance of the Economy report, which shows that DR Congo receives more exports from Uganda than any other East Africa Community (EAC) member state.

Ambassador Ronnie Balya, the head of the Ugandan Mission in Juba also reported a $41.68 million (Shs164 billion) trade surplus in favour of Kampala between Uganda and South Sudan. This comes as the security situation in South Sudan continues to normalize, following the signing of the Revitalised Agreement on the Resolution of the Conflict in 2018.

“As we move forward, our focus should be on joint venture business in various areas like industry, agriculture, ICT, services – like health, education, banking, real estate, hospitality, tourism, and infrastructure development,” said Balya.

Trade between the two nations has shown significant growth, with Uganda’s exports to South Sudan increasing from $225.28 million in 2015/16 to $546.43 million in 2021/22. South Sudan’s exports to Uganda also rose from $4.83 million to $15.59 million during the same period.

“Now that peace has returned to South Sudan, I encourage our people in Uganda to embrace this opportunity to expand trade and investment,” Amb. Balya said. However, challenges persist, including non-tariff barriers, tariff barriers, and infrastructure limitations.

The Embassy of Uganda in Juba is working to address these issues, including the establishment of a joint mechanism for product verification and the easing of taxation on imported goods. “The awaited Joint Permanent Commission (JPC) meeting will go a long way in addressing these concerns,” Ambassador Balya said, adding: “We shall do more market intelligence/market survey on various opportunities.”

Uganda’s High Commissioner to Rwanda, Gen (Rtd) Robert Rusoke said Uganda’s exports to Rwanda have shown significant growth, increasing from Shs400 million in 2020 to Shs110.7 billion in 2023, while Rwanda’s exports to Uganda have also risen from Shs36 billion to Shs45.1 billion during the same period.

Key Ugandan exports include pineapples, Irish potatoes, mangoes, and sorghum, while Rwanda’s main exports include sugar, cement, and maize flour. After three years of strained relations, Uganda and Rwanda have revitalized their bilateral ties, paving the way for increased trade and economic cooperation.

The thaw in relations comes after a consultative meeting between the two nations culminated in the signing of an MOU on political and diplomatic consultations in January 2022. The MOU established a framework for regular Ministerial Diplomatic and Political consultations every six months to address any contentious issues and promote warm bilateral relations.

The Joint Permanent Commission (JPC), which had stalled for over a decade, was subsequently revived in March 2023, paving the way for enhanced economic engagement. The Uganda High Commission in Rwanda has played a crucial role in promoting Economic and Commercial Diplomacy, facilitating trade and investment between the two nations. The Mission has also worked to address challenges faced by traders, including the reopening of border points and the simplification of customs procedures.

Uganda’s High Commissioner to Tanzania, Col (Rtd.) Fred Mwesigye, highlighted the significant growth in trade between the two nations, with Uganda’s exports to Tanzania increasing by 16.7% annually over the past 27 years.

Key export sectors from Uganda to Tanzania include minerals, coffee, and agricultural produce, while Tanzania’s main exports to Uganda include rice, gold, and cereals. Despite the progress made, several challenges persist, including non-tariff barriers, infrastructure limitations, and social and cultural issues.

To address these challenges, the two nations have undertaken various mitigation measures, including continuous engagements under the Joint Permanent Commission (JPC) framework, promotion of regional integration, and organization of trade missions and business forums. Col. Mwesigye said opportunities for bilateral trade expansion include market expansion, competitive analysis, business promotion, strategic partnerships, and infrastructural connectivity.

Both countries have committed to full implementation of the East African Community (EAC) Common Market and Single Customs Protocol to improve trade relations. The High Commission of Uganda in Tanzania remains dedicated to promoting economic diplomacy and facilitating trade between the two nations.

The Uganda Embassy in Mogadishu announced significant trade and remittance flows between Uganda and Somalia. According to Ambassador Prof. Sam Tulya-Muhika, Head of Mission, Ugandans working in Somalia remit between $50,000 to $60,000 daily, totaling approximately $1.5 million to $1.8 million monthly.

He said the Embassy has established a mechanism for regular meetings with the diaspora to encourage Foreign Direct Investment (FDI) and is negotiating with money transfer services like Dahabshiil, Taj Services, and Jubaland Transfer to reduce transaction costs.

Over 25 private security companies in Somalia employ Ugandans, with 2,500-3,000 workers in the sector. Prof. Sam Tulya-Muhika, said the Embassy has approved 250 job orders under the External Employment Management Information System (EEMIS).

Somali businesses in Uganda operate in remittances, oil and gas, cafes, restaurants, air travel, and banking. The Embassy is promoting Ugandan coffee and exploring economic and commercial diplomacy opportunities.

On his part, Evans Aryabaha, Charge d’Affaires at the Uganda High Commission in Nairobi highlighted Uganda’s efforts to increase its exports to Kenya despite facing various challenges.

Aryabaha noted that Uganda’s exports to Kenya have been growing, with tea, milk, and corn being the top exports.

However, Aryabaha pointed out that Uganda’s exports to Kenya still face tariff and non-tariff barriers, including excise duties, levies, and restricted market access. He emphasized the need for scrupulous legal and policy coherence to address these challenges.

Despite these challenges, the Mission has made efforts to promote economic and commercial diplomacy, including organizing trade and tourism promotion events, coordinating benchmarking tours, and engaging in joint verification missions. He highlighted the success of the Mission’s efforts, including the signing of a tripartite agreement on the importation of refined petroleum products and the refurbishment of Uganda House in Nairobi, which is expected to earn significant non-tax revenue.

Aryabaha emphasized the importance of allocating and maintaining a budget for economic and commercial diplomacy promotion, noting that Kenya is Uganda’s strategic partner and top trading partner in the region. He called for periodic reviews to assess progress and improve performance in promoting economic and commercial diplomacy.

Amb. Elly Kafeero Kamahungye, Ag. Director Regional and International Economic Affairs at the Ministry of Foreign Affairs emphasized the importance of ECD in achieving Uganda’s development goals. He said the ambassadors have been equipped with skills to promote economic and commercial diplomacy (ECD) as a key driver of national development and regional integration.

“Economic diplomacy involves using government resources to promote the growth of a country’s economy by increasing trade, promoting tourism and investments, and technology transfers,” Amb. Kamahungye explained. He highlighted the role of MOFA and its missions abroad in promoting Uganda’s interests, attracting foreign direct investment, promoting tourism, and increasing exports.

“We need to be proactive and business-oriented, seeking to satisfy the needs of companies and promote Uganda as a destination for investment, tourism, and trade,” Amb. Kamahungye urged commercial diplomats. The retreat aimed to provide a platform for commercial diplomats to share experiences, best practices, and challenges in promoting ECD.

Participants discussed various topics, including the importance of market access, compliance with market standards, and leveraging regional integration to promote trade and investment.

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