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Uganda urged to prioritize agriculture, tourism, mining for economic recovery

The government of Uganda has been urged to prioritize agriculture, tourism, mining and prudent debt management if it is to recover from the effects of a three-year global slowdown.

Speaking at the 2023 Stanbic Global Financial Markets Forum in Kampala on Tuesday, economic experts said the government is still handling the four sectors, especially tourism and agriculture, in a rudimentary way.

Dr. Fred Muhumuza, an economist at Makerere University, criticized government approach on modernization of agriculture, saying it is opting for costlier means.

He said while the sector has for long been considered the backbone of the economy and Uganda a food basket for the region, the country actually does not have enough food for itself.

According to Muhumuza, if the government is to use irrigation for areas vulnerable to drought, then a lot of resources have to be applied. He however, says that the cheaper and more sustainable solution should be the introduction of resistant seeds.

He also said the Parish Development Model’s challenge is the limitation of the government budget and conceptualization.

“The conceptualization of the PDM is the seven pillars and all of them are meant to work together, if fund one and not the other, you are going to have a problem,” he said.

Joseline Kateeba, the Managing Director of Crest Foam Uganda, said agriculture is not just for increased availability of food for people to eat, but that it increases the spending power of farming communities which account for the majority of Ugandans.

Dr Micheal Atingi-Ego, the Bank of Uganda Deputy Governor, said they are studying the possible implementation of central bank digital currencies.

In turn, this will lead to high purchasing power for industrial products and boost industrialisation.

Jibran Qureishi, the Head of Research at the Standard Bank Group, urged the government to make it a priority to clear what it owes the Bank of Uganda as demanded by the International Monetary Fund because it will give a wrong image internationally on Uganda’s financial market.

Qureishi hailed Uganda for its cautious borrowing compared to other countries in the region, though this does not mean that it is in a very safe position. He says for example, that Uganda has ensured a lower ratio of commercial loans as part of total debt compared to others like Kenya, Zambia, Angola or even Ghana which announced it was defaulting on debt repayment starting this year. He says if countries like Uganda are to borrow, more of the credit should go towards productive sectors like agriculture.

Qureishi said much as Uganda’s debt level is just around 50 percent of GDP while other countries have already recorded higher figures, it is the ratio of the commercial loans to the total burden which should be worrying.

Currently, such loans account for eight percent of the debt stock, having grown from nil 10 years ago, while Kenya’s has grown from six percent to more than 30 percent.

He warned that the government is acquiring too much expensive debt especially in the form of government treasuries.

Muhumuza urged the government to focus on developing other minerals in Uganda other than oil and gas.

“I am going to suffer to remove my sister Irene Batebe and her bosses from oil and gas so we can talk about other minerals. 2025 is a good target for gold. The refineries for gold came around 2014,” he said.

Anne Juuko, CEO at Stanbic Bank Uganda said: “The most important risk that we must all address ourselves to is the existential risk of climate change. We are one of the few institutions in this country with a fully-fledged sustainability department.”

“In the Old World Order, we knew two things to be certain: death and taxes. In the New World Order, we can add risk. There is always going to be one form of risk or the other manifesting in your business. That is where we come in as your risk management partners,” she added.

Ms Pauline Irene Batebe, the Permanent Secretary in the ministry of Energy, said: “As part of the New World Order there is an aspect that hasn’t been discussed exhaustively and that is the energy transition.”

“As the Ministry of Energy and Mineral Development, we want to emphasize that the energy transition should be tailor-made on a case-by-case basis for countries. As a country such as Uganda where we are predominantly using biomass for our energy requirements, it is on us to push ourselves to transit very fast,” she added.

Dr Micheal Atingi-Ego, the Bank of Uganda Deputy Governor, said they are studying the possible implementation of central bank digital currencies.

“BoU is open to financial innovations, especially those that reduce the cost of transactions,” he said.

He also urged financial institutions to cooperate and fight cybercrime.

“We all know what the pandemic did for digitization. This is good for business growth and operations but also presents risks of cybersecurity,” he said.

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UNHCR, partners appeal for Shs4.7 trillion to support South Sudanese refugees

Refugees

In a bid to protect and assist 2.2 million South Sudanese refugees this year, UNHCR, the UN Refugee Agency, together with 108 humanitarian and development partners, have appealed for US$1.3 billion (Shs 4.7 trillion). The funds will go towards supporting South Sudanese refugees and their local host communities in the Democratic Republic of Congo (DRC), Ethiopia, Kenya, Sudan and Uganda.

The appeal comes amid a worsening economic outlook across the region as the long-term impact of the COVID-19 pandemic as well as the ripple effects of the war in Ukraine have pushed up fuel and food prices and increased unemployment. Host countries that have generously welcomed South Sudanese refugees are bearing the strain of the crisis amid staggering levels of underfunding, prolonged drought, and severe food shortages, including food ration cuts for refugees.

Launching the South Sudan Refugee Response Plan, UNHCR urged the international community to scale up support for the millions of refugees who are unable to return home as their country continues to face a fragile peace and security environment marked by cycles of sporadic violence, and the impacts of an unfolding climate crisis. Four years of unrelenting floods have inundated two-thirds of the country, damaging tens of thousands of people’s houses, farmland and livestock.

“The support will be crucial in meeting refugees’ most immediate needs in host countries, including shelter, education, health and food assistance. With women and children comprising 80 percent of all South Sudanese refugees in the region, funding for programmes to prevent and respond to gender-based violence needs to be prioritized,” UNHCR said in a statement.

The appeal also aims to provide digital cash assistance, and other resilience-enhancing initiatives such as access to finance and training, to help refugees and local communities generate income, supplement their needs and live in dignity.

UNHCR said host governments will also be supported to strengthen the asylum space and further protect the rights of refugees and asylum-seekers, as well as boost the prospects for long-term solutions. This includes improved registration and documentation and advancing ongoing efforts to include refugees in national social protection systems and enhance their access to basic services, all of which help to better prepare refugees for an eventual return.

Interventions to increase the use of clean and sustainable energy in refugee hosting communities will also be strengthened, to mitigate environmental impacts.

With only a third of funding requirements met for last year’s South Sudanese refugee appeal, the major countries of asylum in the region  the Democratic Republic of the Congo, Ethiopia, Sudan and Uganda — were among UNHCR’s most under-funded operations.

We call for compassion and commitment to be extended to South Sudanese refugees and other people forced to flee around the world. Timely funding is crucial to ensure adequate support and protection for the most vulnerable.

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Ssenabulya sentenced to 40 years for kidnap, murder of Nagirinya and Kitayimbwa

Isaac Ssenabulya

Isaac Ssenabulya has been sentenced to 40 years in prison for the murder of Maria Nagirinya, a Non-Governmental Organisation (NGO) staff at Community Integrated Development Initiatives (CIDI), and her driver Ronald Kitayimbwa.

Yesterday, High Court Isaac Muwata convicted him after he pleaded guilty to the kidnap and double murder of Nagirinya and Kitayimbwa in Feb 2019. He apologized to the families of the deceased and asked for a liniment sentence. 

The prosecution led by Jonathan Muwaganya and Timothy Emerit had asked that Ssenabulya be given the maximum penalty of death, for killing two innocent Ugandans as a deterrent to others.

Ssenabulya was charged alongside six other people after the prosecution dropped murder charges against Raymond Okori Marckos.

Nagirinya was kidnapped on August 27, 2019 by two men who reportedly trailed her as she returned home. According to her family members, the assailants accessed her vehicle registration number UBA 570V, Spacio, moments after her young sister had just opened the gate.

The deceased is alleged to have been killed in the car before dumping her body at Nakitutulu village, Nama sub-county in Mukono District.

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US First Lady Jill Biden to visit Kenya

US First Lady Jill Biden

The United States of America First Lady Jill Biden is set to make her first-ever visit to Kenya. This is a four-day tour between Wednesday February 22 and Sunday, 26.

However, before coming to Kenya, she will first head to Namibia where she will meet and engage in a vibrant youth drive in the country she believes has a strong democracy.

This will be her first time in the country since her husband, Joe Biden, was elected the US President.

“Today, I’m heading to Africa for my sixth visit to the continent, and my first as First Lady,” Jill said on Tuesday.

In Kenya, Jill Biden will meet and engage with those affected by drought and facing food insecurity.

“Then in Kenya, I will hear from those affected by the ongoing historic drought and food insecurity, which has been exacerbated by the ripple effects of Russia’s assault on Ukraine,” she said.

The US First Lady said despite Kenya being miles away from the US, whatever affects the nation also impacts them overseas.

“Our world is connected. What happens oceans away, affects us all,” Jill said.

The First Lady highlighted that she has always had strong support for women and youths globally.

“I’ve always believed that supporting women and youth across the world is critical to our common future, with education, health, and empowerment at the heart of it all,” Jill said.

The First Lady added that the US would honor its shared democratic values, reaffirming its commitment to Namibia and Kenya’s futures.

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Domestic violence, Theft and Assaults were the most reported crimes in 2022

IGP Ochola launching the 2022 Annual Crime Report

The Uganda Police Force has released the 2022 Annual Crime Report with domestic violence, theft and assaults the most commonly reported crimes.

Theft of all kinds in general was the most commonly reported crime with 28,419 cases compared to 19,026 cases reported in 2021. Common Assault and Domestic Violence followed closely with 26,126 and 17,698 cases respectively while 14,693 sex-related offences were registered.

Out of 26,124 Common Assault cases reported to Police, 4,093 cases were taken to Court with 665 convictions, 2 acquittals, and 3,402 cases pending.

According to the report, there was an 18 percent increase in the number of crimes reported to the Police from 196,081 cases reported in 2021 to 231,653 cases.

Out of the 231,653 crimes reported, 68,405 cases were taken to Court, 26,749 cases were not proceeded with, and 136,499 cases are still under inquiry.

The report shows an impressive 5.2 percent increase in cases taken to court in 2022 compared to 2021. A total of 68,405 cases were prosecuted indicating a stronger commitment to justice.

October 2022 saw the highest number of cases reported with 20,964 cases, followed by September with 20,836 cases and July with 20,630 cases. 

On average, there were 19,304 cases reported per month.

Out of the 28 Policing Regions in Uganda, North Kyoga registered the highest number of cases (17,605), followed by KMP North with 16,691 cases, KMP South with 14,492 cases, Rwizi with 14,204 cases and Albertine with 13,544 cases.

Of the 183 Divisions/Central Police Stations, Old Kampala recorded the highest number of cases (4,314), followed by Katwe Police Division with 3,938 cases and Luwero Central Police Station with 3,902 cases in 2022.

Speaking at the launch of the report, the Inspector General of Police (IGP) Martins Okoth Ochola said; “As we work towards making Uganda a safer place, I extend my heartfelt gratitude to the entire Police fraternity, the Ministry of Internal Affairs, Security Agencies, Judiciary, the Media, and the public for their unwavering support in fighting crime.”

“We have enhanced law and order, engaged communities through community policing programs, and improved the welfare of our personnel by enhancing their accommodations. We are also embracing digitalisation to ease the detection and analysis of crime trends,” he added.

Annual crime report 2022 statistics show a 35 percent increase in common traffic offences recorded by the Directorate of Traffic and Road Safety in 2022. This resulted in a 16.9 percent rise in road traffic crashes, with 3,901 being fatal.

The total number of deaths resulting from road crashes increased by 9 percent from 4,159 in 2021 to 4,534 in 2022 while pedal cyclists and drivers saw a decrease of 9% and 1% respectively.

Fatal crashes rose by 16.9 percent and serious crashes increased by 18.8 percent in 2022, according to the latest data. The number of minor crashes also went up, resulting in a 17 percent increase in overall crashes reported.

Lawrence Nuwabiine, Ag. Director of Traffic and Road Safety said the rush hour between 1900-1959hrs has been identified as the peak time for road crashes.

“On the other hand, the lowest number of crashes was recorded between 0200-0259hrs, a result of reduced activity,” he said.

2022 saw a significant drop in Political/Electoral and Media Offences in Uganda, with only 140 cases reported to the Police compared to 797 in 2021, representing an 82.6% decrease in this category of crimes.

AIGP Tom Magambo said: “Our focus in 2022 was to improve the quality of services we offer, engage communities through community policing programs, and develop the initial phase of digitalising our processes for ease of tracking and analysis of crime trends.”

Magambo said land-related crimes saw a 6 percent surge in 2022 with 561 cases reported to the Police, compared to 332 in 2021. 23 cases reached Court, while 538 are under inquiry and 150 were sent to the DPP for legal guidance.

Cases of Arson reported to Police in 2022 decreased by 3.1 percent compared to the previous year. By the end of 2022, a total of 1,747 cases were reported, down from 1,803 in 2021.

Full Report:

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URA destroys beverages found without Digital Tax Stamps

Uganda Revenue Authority on Tuesday destroyed 13,391 packages of assorted beverages, gins, kombucha and vodka that were seized for not adhering to digital stamps laws in Nakasongola.

URA’s Manager Public and Corporate Affairs, Robert Wamala Lumanyika, who presided over the destruction, said that URA issued several reminders to owners to go to Nakawa, claim their goods and affix digital stamps as stipulated by the Tax Procedures Code Act, in vain.

Currently, 13 products have been gazetted for digital tax stamps and they include beer, spirits, fruit and vegetable juice, soda, wine, mineral water, cement, sugar, cooking oil, any other fermented beverages, any other alcoholic beverages, any other non-alcoholic beverages and tobacco products.

“Each of these is supposed to affix a stamp failure of which the goods are confiscated. The cost of tax stamps ranges from as low as Shs13 per bottle of bottled water to shillings 60,000 for a bulker of cement. The Public should know that this is an allowed expenditure as one is accounting for their taxes’ Wamala said.

“Moreover, the owner can enter into a memorandum of understanding if such goods are confiscated, affix stamps and pay applicable penalties for not complying”.

Products confiscated for noncompliance to Digital Tax Stamps requirements are kept in Nakawa for six months after which such goods are either auctioned or destroyed.

Wamala explained that this particular consignment could not be auctioned as the case for other goods because they need certification from Uganda National Bureau of Standards (UNBS).

“Products without DTS are believed to be substandard and therefore not fit for human consumption. Do you remember the recent deaths registered in Arua after consumption of a spirit called X-5, which had no digital tax stamps?” Wamala said. It is such unfortunate incidents that we need to guard against”.

DTS was introduced on spirits and kombucha on 1st February 2022 and 1st May 2022 respectively.

However, some of the manufacturers affixed fake digital tax stamps in contravention of the law.

According to the Tax Procedures Code Act, a person who prints over or defaces a tax stamp is liable to pay double the tax due or Shs20 million whichever is higher while one found in possession of goods which have no stamps is liable to pay double the tax due or Shs50 million, whichever is higher.

“Penalties are punitive because we want to deter persons from engaging in the practice. Many persons who deal in unstamped goods are actually engaged in counterfeiting thereby creating undue competition from those who engage in legitimate business,” Wamala said.

URA has tried to locate the manufacturers of these drinks but it is facing a challenge of culprits who keep changing their location and brands. The URA operations are aimed at controlling illicit trade and ability to conveniently verify and trace all specified goods throughout the distribution chain.

In the first half of the Financial Year (July to December 2022), the manufacturing sector was the second best contributor to domestic revenue with Shs 2,702.90 billion (22.67%) collected. Out of this Local Excise Duty contributed 919.6 billion. In the same period, the DTS register grew with an addition of 957 clients, representing 751 manufacturers and 206 importers.

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Leaders given until March 31st to declare their wealth

IGG Beti Kamya

The Inspector General of Government (IGG) Beti Kamya Turwomwe has announced the 2023 roadmap for the next declaration of income, assets, and liabilities of Leaders.

The IGG made the revelation during a press conference at Uganda Media Centre on February 21, 2023.

She said that this year’s declaration exercise will be launched on Wednesday March 1, 2023 in Lira City and will be presided over by the Deputy Speaker of Parliament Rt. Hon. Thomas Tayebwa, who will in effect be the first declarant this declaration year.

The exercise will run from 1st March 2023 and will close on 31st March, 2023 at midnight.

“Please take serious note that there is no provision in the law to extend this period. Therefore any leader who will not have declared by 31st March 2023 will be in violation of the law,” the IGG warned.

The IGG noted that Articles 223 (2) and 234 of the Constitution of the Republic of Uganda and section 4 of the Leadership Code Act require political leaders and appointed leaders specified under the Second Schedule Part A and the Third Schedule Part A and Part B of the Leadership Code Act, 2002, amended in 2021 to declare to the Inspectorate of Government (IG) their income, assets and liabilities every two years in the month of March.

The previous declaration was done in March 2021.

However, this year’s declaration is only meant for Leaders and not for Public Officers.

The category of Leaders include elected political leaders from LC3 upwards to the President, people appointed by the President for instance, Permanent Secretaries, Heads of Public Institutions, Board Members of Public Institutions and Executive Leaders of registered political parties among others.

Public Officers are also supposed to declare but under a different legal provision. Public Officers are all those people, other than Leaders whose salaries are paid from the Consolidated Fund.

“For this category, the law requires that they declare their income, assets and liabilities within 3 months after being appointed to a government job and thereafter every five years in the month of April. So the next declaration for Public Officers will be in April 2026. But for clarity, only those Leaders specified under the schedule are required to declare starting from 1st to 31st March 2023,” the IGG said.

The IGG said that declarations will be submitted digitally using the IG-Online Declaration System (IG-ODS) which will be opened on 1st March 2023 and closed on 31st March 2023 at midnight.

“In case a declarant needs help, they should seek the support of the Office of the Chief Administrative Officer or Inspectorate of Government Regional Office or selected people in all Government Institutions called Focal Persons who have been trained to use the IG-ODS,” she said.

She also emphasised the fact that there are serious sanctions under the law for non-declaration, over declaration, falsification of facts and anticipatory declaration of income, assets and liabilities.

The sanctions for breach of the Code include fines, warning, caution, demotion, and dismissal from office, vacation of office, and confiscation and forfeiture of illicitly acquired assets, gifts or benefits to the Government.

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Museveni to campaign for Philip Oucor ahead of Serere County by-election

President Museveni

President Yoweri Museveni is today expected to campaign for Philip Oucor, the National Resistance Movement- NRM flag bearer for the forthcoming Serere county by-election.

Museveni’s first campaign rally for Oucor will take place at Ocaapa town council. Oucor is competing against Omoding Emmanuel (Independent), Alaso Alice (ANT), Emmanuel Eratu of Forum for Democratic Change (FDC) and Mr Martin Onguruco.

The National Unity Platform – NUP is backing Alice Alaso, the flag bearer for the Alliance for National Transformation –ANT.

Serere County Parliamentary seat fell vacant following the death of the former Member of Parliament, the Late Okabe Patrick, in a motor accident on 19th December 2022.

According to the electoral road map, the election exercises kicked off with the update of the National Voters’ Register from Friday 6th to Tuesday 10TH January 2023 in each of the 38 parishes and wards in Serere County.

The nomination of candidates will be conducted on Thursday 9th and Friday 10th February 2023 at the Office of the District Returning Officer, Serere.

Polling and tallying of results for the by-election of Member of Parliament will be conducted on Thursday 23rd February 2023.

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TotalEnergies EP Uganda passes key industry safety milestone on Tilenga Project

TotalEnergies EP Uganda has successfully achieved 10-million-man hours without Lost Time Injuries (LTI) on the Tilenga Project. This crucial health and safety industry milestone was achieved on January 13th, 2023.

Measurement of LTI is a lagging indicator which is aimed at measuring a company’s incidents in the form of past accident statistics. It measures all on-the-job injuries that require a person to stay away from work for more than 24 hours, or which result in death or permanent disability.

“Safety is a core value at TotalEnergies EP Uganda and our achievement of 10-million-man hours without injuries is testament to the fact that all our employees and contractors take this value seriously,” said Philippe Groueix, General Manager TotalEnergies EP Uganda.

“It is important to recognize the key role played by the dedicated Health, Safety and Environment teams as well as the site supervision teams who work in close collaboration with our contractors to ensure that safety remains a priority for all. Given the significant increase of our activities on site, it is critical to reinforce our collective commitment to safeguarding the lives of everybody working on the project”, he added.

Safety is of utmost importance in any oil and gas activity, and TotalEnergies EP Uganda is committed to ensuring that all safety measures are in place to protect its employees, facilities, the environment, and the communities in which it operates. Currently, the Tilenga project employs more than 5,000 people working with TotalEnergies EP Uganda and its contractors both on site and in Kampala.

The Company has invested heavily in state-of-the-art technology and equipment, local and international experts for the development of the projects and has put in place strict safety protocols to minimize risks on its sites.

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NSSF clamps down on suspense account fraud, wins Shs152m case

A former employee of the National Social Security Fund-NSSF, Joseph Sooka has been sentenced to five years in prison for withdrawing over Shs152 million from the suspense account.

This is after NSSF handed him over to the Uganda Police in October 2019 and the Director of Public Prosecutions following an internal investigation that established suspicious withdraws he had fraudulently processed over time.

The suspense account is where the Fund temporarily saves contributions with unclear details of the member accounts to which they should be deposited. The money is later allocated to the respective member accounts upon reconciliation with the contributing employers.

The Fund’s Internal Audit Department in October 2019 established that Sooka had presented fictitious claim documents that he used to access monies of the unsuspecting members between May 2017 and July 2019. “All the monies released on account of the false claims was credited to the (bank) accounts controlled by the accused…,” according to the judgment delivered by Lady Justice Margaret Tibulya.

At the time of his arrest, Sooka had fraudulently claimed monies for seven members.

The Fund’s internal audit team identified unusually withdraws on the suspense account following a tip-off by one of the victims. It was discovered that the genuine members hadn’t claimed their monies although claims had been processed in their favor.

Sooka was convicted on a total of ten counts that included embezzlement, money laundering, forgery and uttering of false documents.

Justice Margaret Tibulya convicted Sooka on each of the ten counts as charged. He was asked to refund the Shs152,720,670 he had stolen from the Fund and banned from assuming any positions in public offices for a period of ten years.

Barbra Arimi, the Fund’s Head of Marketing and Corporate Affairs said that the win demonstrated the Fund’s zero tolerance for fraud.  “We are committed to protecting our members’  savings at all costs and have put in place several security checks to prevent fraud, especially from the suspense account.”

The Fund has since put in place initiatives to mitigate the growth of balances on the suspense account. These initiatives include the e-collections portal which makes it impossible for employers to remit without complete employee information, publication of suspense in different media platforms as well as field engagements aimed at tracing members on the suspense account.

In addition, the Fund has fully integrated with NIRA to enable the registration of members, and this has significantly reduced the amount of incoming suspense. “The bulk of the suspense relates to historical periods. Once all efforts to clear suspense are exhausted, we will publish all pending suspense and have it moved to the reserve as per provisions of the NSSF Act (as amended),” Arimi concluded.

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