At least 200 lucky parents stand a chance to win cash prizes worth Shs100 million when they pay school fees for their children through FlexiPay or Stanbic Bank agent banking channels, courtesy of a six-week back to school cashback promotion aimed at supporting guardians returning their kids to school.

The back-to-school promo also allows salaried parents to access up to Shs250 million in advances to pay school fees for their children. To stand a chance of winning Shs500, 000 in cashbacks, parents must pay school fees through agents or FlexiPay.

For school owners, they can apply for an unsecured school bridge Finance Loan of up to Shs500 million or allow for 100 percent collection of the school fees through Stanbic and enjoy free comprehensive insurance cover.

Mr. Sam Mwogeza, Stanbic Bank Uganda’s executive head of personal and private banking said the campaign is a timely intervention for its personal banking clients grappling with the challenge of finding resources to return children back to school.

“We acknowledge that behind the over 15 million learners who must return to school this week, there is a parent stressed about school fees during what we know to be a challenging economic environment.

Through this promotion, we are offering parents and guardians an opportunity to access cash advances of up to Shs250 million, to get them through this season,” said Mwogeza. 

Mwogeza explains that the salary loan comes with up to 75 days initial repayment holiday and a long repayment tenure of up to 84 months as well as access to medical cover worth up to Shs18 million for as low as Shs 600,000.

The offer also includes a one-year option for a hospital cash cover worth Shs1.5 million for a monthly premium investment of as low as Shs2,500.

Emma Mugisha, Stanbic Bank Uganda’s executive director, and head of business and commercial banking said the bank’s school owning clients can also take advantage of the promo to secure affordable credit to finance operations.

“We know that many parents are unable to pay the full tuition at the start of the term. Our back-to-school promotion allows school owners and administrators to access up to Shs500 million in unsecured credit and manage any cash flow constraints at the start of the term,” said Mugisha.

Parents and guardians who pay school fees using FlexiPay or through a Stanbic Agent over the next six weeks will automatically be included in weekly draws where they stand a chance to be picked among the 200 lucky winners to win Shs100 million in cashbacks.

Eight winners per region will be drawn weekly and announced on selected radio stations with each walking away with up to Shs500, 000.

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In a bid to expand access to credit card services in Uganda, Absa Bank has launched two new credit card digital innovations named ‘Buy Now, Pay Later’ and ‘Credit Card-Initiated Payments’.

‘Buy Now Pay Later’ will enable customers to make payments off their credit cards and choose flexible repayment plans at reduced interest rates while ‘Credit Card Initiated Payments’ will allow customers to move money from their credit cards into their personal accounts and Mobile Wallets to enable them draw cash or pay for goods and services incase POS services are not available.

“This new product offering is a testament to our dedication to constant innovation to provide high-quality and affordable banking services. This is a pioneer innovation, a first-to-market solution which builds on our existing range of affordable and convenient digital financial services. This product is structured to offer convenience to our customers whose consumption habits continue to shift with an increasing trend towards convenience, modern lifestyle, holistic experiences and value offerings, said Michael Segwaya, Executive Director and CFO, of Absa Bank Uganda.

The credit card offerings are in response to a shift and preference for digital payment systems among the population driven by the movement towards cashless transactions.

“There is a disruption to consumer behaviour driven by the emerging middle class who require convenient, high quality and affordable banking solutions to suit their lifestyle. By signing up, customers will enjoy favourable interest rates, can choose a payment plan on their credit cards that suits them and enjoy simple and convenient payment plans through a host of digital channels available at Absa including internet and mobile banking,” said Musa Jallow, Retail and Business Banking Director, Absa Bank Uganda.

According to the African Development Bank, Africa now boasts the world’s fastest-growing middle class, currently standing at 24%, a 100% rise in less than 20 years.

The growth of the middle class is accompanied by investment opportunities, a change in consumer behaviour and a rise in total purchasing power, which boosts global demand. Other emerging trends include the growth of ecommerce which has necessitated supporting digital financial services and convenient e-payment channels.

According to data from the US International Trade Administration, Africa is forecast to surpass half a billion e-commerce users by 2025. This reflects a steady 17% compound annual growth rate (CAGR) of online consumers in the market.

The product also allows customers to easily track, manage or even cancel payment plans and make purchases digitally using their credit cards. It is also possible to have multiple payment plans running.

“We have signed up several reputable partners with attractive goods and services ranging from Tours and Travel to digital gadgets including handheld devices and laptops. Signing up for this product is easy. I encourage customers to sign up for an Absa credit card today to take advantage of what we can guarantee is the most attractive, convenient and affordable offer on credit cards in this market,” Jallow said.

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The Uganda Revenue Authority- URA has intercepted six trucks with 1,900 bags of 50kgs each of smuggled Simba cement over the last couple of weeks in the areas of Lwakhakha and Suam River.

Of the loot recovered, 1,500 bags did not possess any digital tax stamps and had not met any customs obligations required of cement importers, which makes them smuggled goods. The remaining 400 bags of cement had digital tax stamps but were smuggled through porous border points.

The trucks UBK148Z, UBK239P, UBB717U, UBN469B, UBN430K, UBH412T, moving from the Kenyan side between, were each smuggling 250 bags of unstamped cement. The two trucks of UBN308N and UBH736B were smuggling 250 bags and 150 bags respectively of stamped cement.

“The bags of cement with stamps had no customs import documentation to indicate payment of taxes dues. It was also found out that these trucks get one import document for one truck of cement and they use it to smuggle in like 3 or more trucks without meeting their customs tax obligations,” noted Mr. Ibrahim Bbossa, the URA Spokesperson.

Ibrahim Bbossa added, “A taxpayer who fails to affix or activate a tax stamp is liable to a penal tax equivalent to double the tax due on the goods or Shs50 million whichever is higher as stipulated under Section 19B (1) of the TPCA 2014. Other enforcement measures include seizure of goods, closure of business premises, distress proceedings or prosecution.”

Cement manufactured within the East African region and imported into Uganda attracts 0% import levy. However, they must declare the goods and pay VAT of 18%, Withholding tax of 6% and infrastructure levy of 1.5% all the cement confiscated over the weekend had none of the above.

Cement is one of the 26 products and services required to pay excise duty. Excise duty is a tax on consumption of specified goods and services. It is collected to generate revenue as well as regulate consumption of certain goods and services by making them slightly expensive. It is also collected on imported items some of which can be manufactured in Uganda.

Cement pays excise duty of Shs500 per 50kgs by applying digital tax stamps. The application of the digital tax stamps, which rolled out in 2019, eases declaration and payment of excise duty to URA by the importers and manufacturers of the 13 items gazetted to apply tax stamps.

The other 12 products gazetted to affix digital tax stamps include Beer, Soda, bottled water, wines, spirits, tobacco products, sugar, cooking oil, fruit and vegetable juices, non-alcoholic beverages (kombuchas, teas and health drinks, bushera), alcoholic beverages and fermented beverages (cider, mead, perry or other form of beers).

Digital tax stamps level the market field by fighting illicit traders such as smugglers who want to sell the same product without meeting required tax obligations. The stamps also provide a track and trace capability of goods along the value chain, to ensure the standards are not violated, for the good health of the consumers.

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