Following the outbreak of the #Covid-19 pandemic, most of the sectors were affected more so, the business sector. The pandemic and its devastating effects could be felt even when the country did not report any #Covid-19 cases since 2021. Several businesses closed down and many employees were laid off.
2022 kicked off with the full reopening of education, entertainment, and other vital sectors of the economy which were under lock and key.
This year witnessed the death of the Governor of the Bank of Uganda Prof. Emmanuel Tumusiime Mutebile, the capitalization of the Uganda Development Bank, the exit of Afriland Bank from the Ugandan market and more stories that made headlines in both local and international press.
DECEMBER
KCB Group Plc acquires DRC-based Trust Merchant Bank
KCB Group Plc announced the acquisition of Trust Merchant Bank SA (TMB) after receiving all the regulatory approvals. The Group now owns an 85% stake in the Democratic Republic of Congo (DRC) based lender.
KCB Group obtained the regulatory green light in Kenya, the Democratic Republic of Congo and the COMESA Competition Commission, setting the stage for the Group to acquire the 85% of the shares in TMB.
KCB Group CEO Paul Russo said the transaction will positively contribute towards KCB’s increased scale of operations by establishing its presence in new markets and providing income diversification from a geographical perspective.
NSSF launches Smart Card loyalty programme
The National Social Security Fund (NSSF), in partnership with various companies, has officially unveiled a loyalty programme where its members can access discounts on selected goods and services through the NSSF smart card.
The initiative is one of the major features of the NSSF Smart card, a three-in-one social security card that embeds NSSF functionality and bank functionality in addition to the Loyalty program. This is in partnership with Visa, a global payments technology company, and Centenary Bank.
NSSF Ag. Managing Director Patrick Ayota said that the initiative was informed by Fund’s desire to be more relevant in the members. The Loyalty program was also an opportunity for the Fund to grow its membership.
CR2, dfcu partner to upgrade ATM, card and payments management system
Dfcu Bank partnered with CR2, a global-leading banking software company to upgrade its ATM, Card and Payments Management Platform.
The partnership between dfcu and CR2 will build the Bank’s technological capability and will start by enhancing the customer experience across cards, ATMs, and payments.
The dfcu Bank CEO, Mathias Katamba, highlighted the digital transformational journey the bank has undergone since 2017 and underpinned the Bank’s pillar of “becoming a digital and data-driven organization” in line with overall customer strategy.
CR2 Bank World Platform allows us to innovate and bring more solutions to our customers in a faster and more agile way. In addition, with CR2’swider ecosystem the bank can access additional fin techs and other technological partners in future.
Over 100 indigenous women-owned businesses to benefit from Shs 7.6bn NSSF funding
The National Social Security Fund (NSSF) in partnership with Mastercard Foundation earmarked over Shs7.6bn seed funding to 100 indigenous women-owned businesses under the third cohort of their NSSF Hi-innovator programme, an innovation initiative.
This was revealed at the launch of the third funding round for NSSF Hi-Innovator dubbed NSSF Hi-Innovator Women Accelerator during the Uganda Innovation Week which runs from 22nd to 24th November 2022, at Mestil Hotel, in Kampala.
Patrick Ayota, the NSSF Deputy Managing Director said that the funding is aimed at giving women entrepreneurs an opportunity to improve their business skills and grow their businesses whilst readying them for future investor funding.
“We have noticed the low participation of women entrepreneurs’ business initiatives. Whereas Uganda is ranked the second country in the world with the highest number of women business owners (38.4%), according to a 2021 Mastercard Index of Women Entrepreneurs, a 2019 World Bank stated that women-owned microenterprises in Uganda generate 30% lower profits than their male counterparts,” he said.
NOVEMBER
Museveni woos Indian investors
President Yoweri Museveni urged Indians to continue investing in Uganda. Museveni said during the celebrations to mark 100 years of Indians in Uganda.
The Indians came to Uganda between 1895 and 1901. The construction of the railway line heralded the beginning of organized Indian immigration to East Africa. Although the majority of the construction workers returned home to the subcontinent, thousands of them took a risk and stayed behind to chart out a new life in East Africa, particularly Uganda.
During the celebrations, Museveni revealed that there is a market of 43 million people in Uganda and 417 Million people in the East African Community (EAC) which comprise Tanzania, Kenya, Rwanda, Burundi, Uganda, South Sudan and the Democratic Republic of Congo (DRC) and the rest of African countries.
“We negotiated market taxes to China, so producing here will enable you to access those markets. The other input cost is infrastructure. The transport costs, the electricity costs. We are generating more electricity than that is being consumed,” he said.
Museveni said the cost of doing business in Uganda is low because there is infrastructure and electricity and raw materials like iron core. Uganda is working with Kenya and Tanzania and DRC and other countries to repair the old railway line to lower transport costs for goods and raw materials.
URA names Vivo Energy Uganda top revenue-generating AEO
The Uganda Revenue Authority named Vivo Energy Uganda as the Top Revenue Generating Authorized Economic Operator (AEO).
AEO is a regional trade facilitation programme recommended by the World Customs Organization (WCO) to ease trade and customs clearance for tax-compliant importers and exporters. AEOs are therefore businesses certified by customs administrations to do self-assessments in compliance with customs rules, under the World Customs Organisation supply chain security standards.
An AEO is a company highly trusted by the revenue body-that even with less surveillance, such a company is expected to assess itself and willfully pay taxes. The companies are also able to self-regulate, self-assess, and work seamlessly with URA regarding their operations.
Vivo Energy Uganda, which enrolled under the AEO Program in 2019 and was recognized as a leader in the financial contribution to Uganda Revenue Authority tax contribution to the tune of Uganda shillings 1.2 trillion to date.
BoU clears Cellulant’s payments operations in Uganda
Pan- African payment technology company Cellulant was granted a payments systems operator license in line with National Payments System Act 2020 which provides guidance in streamlining operators in the fintech space in Uganda.
Cellulant Group which was founded in 2003, launched operations in Uganda in 2009. The firm has a history of delivering inventive technical and financial solutions implemented with a seamless user experience. The company today powers collections and payouts for thousands of businesses in various sectors across 35 countries in Africa.
Thanks to its single API payments gateway that enables global, regional and local businesses to collect payments online and offline, serving its customers with locally relevant payment methods, including mobile money, cards and banks.
OCTOBER
Standard Bank wins 13 awards at Global Finance Awards 2022
From liquidity management to supply chain finance, Standard Bank was awarded for its ability to deliver exceptional client service and superior value across a variety of categories.
Throughout the year, leading finance publication, Global Finance, honors the best banking institutions and their capabilities following stringent analysis alongside globally recognised corporate and financial executives, bankers, and banking consultants.
It was also named Global Finance World’s Best Treasury & Cash Management Bank 2022 for Africa and separate regional awards for Angola and South Africa, Global Finance World’s Best Supply Chain Provider for Africa 2022 and Global Finance World’s Best Trade & Supply Chain Finance Providers 2022 for South Africa and Uganda.
NSSF, Mastercard award Shs 5.9billion seed funding to Ugandan Businesses
The National Social Security Fund (NSSF) in partnership with Mastercard Foundation awarded Shs 5.9 billion seed funding to an additional 78 Ugandan small and growing businesses through their Hi-innovator Program.
This brings the total of businesses funded to 110 since the Hi-Innovator Programme was launched in May 2021, totaling Shs 10.5 billion in seed funding.
The Hi-Innovator Programme is an initiative by NSSF in partnership with Mastercard Foundation that aims to create an eco-system where indigenous Small and Growing Businesses can be supported to mature into viable businesses.
The winners were selected from over 6,300 entrepreneurs that had enrolled in the program’s learning platform dubbed the NSSF Hi-Innovator Business Academy, an online self-directed platform where entrepreneurs obtained foundational business knowledge over the last three months.
SEPTEMBER
Housing Finance Bank launches gov’t Securities Portal
Housing Finance Bank launched the Government Securities Portal for customers who invest in treasury bonds and bills.
In 2020, the Bank OF Uganda appointed Housing Finance Bank as a primary dealer to ensure investors and market customers have easy access to treasury bonds and bills.
Robert Nyehangane, Treasury Head, of Housing Finance Bank said to buy Treasury Bills or Bonds, you need a Central Securities Depository (CSD) account. With the portal, you can open a CSD account within an hour and a Housing Finance Bank account.
“Customers can invest as low as Shs 1,000. Please embrace this journey as we accumulate wealth,”
Guy Kimbowa Lutaaya appointed Chief Risk Officer at Absa Bank
Guy Kimbowa Lutaaya was appointed Chief Risk Officer (CRO) at Absa Bank Uganda Limited effective 1 October 2022.
He is a seasoned finance professional and banker, with over 20 years of experience in finance and over 13 years of experience in banking. In his new role, he will be responsible for leadership and oversight over the Bank-wide Enterprise Risk Management Framework.
Before this appointment, Guy has been the Credit Director at Absa Bank Uganda, a role he has held for five years. He has also served as Head of Retail & Business Banking Credit at Absa Bank Kenya and held various roles at Absa Bank Uganda, including Head of Impairments, Analytics & Models, and Head of Credit Policy & Portfolio Management.
AUGUST
Over 700 youth benefit from Shs 970 million Agribusiness Project
At least 700 youth are to benefit from Shs 970 million Agribusiness Project aimed at supporting young entrepreneurs to revive, strengthen, and build strong and resilient businesses in Northern Uganda.
A flagship of Youth Business International (YBI), Cordaid and Standard Chartered Foundation, the project aims to address the specific needs of 700 youth agribusiness entrepreneurs in Lira, Nebbi and Zombo through specialized business development services, mentorship, access to finance, linkages to markets/inputs and business advisory services among others.
These skills will strategically grow and expand the various youth agribusinesses and contribute to the local economic growth. This project was initially launched in 2021 when Cordaid and Standard Chartered sprung up to mitigate the impact of Covid-19 with an investment of Shs 750 million.
Stanbic Bank records Shs 162billion profit in six months
In spite of an unpredictable operating environment characterized by global price instability and a tightening of monetary policy by the Bank of Uganda to curb imported inflationary pressures, Stanbic Uganda Holdings Limited (SUHL)reported a half-year profit-after-tax of Shs 162billion ending June 30, 2022.
This is up from Shs 158 billion recorded during the same period last year, indicating a 4.7% improvement.
The Chief Executive, Andrew Mashanda, said, “our performance was driven largely by our anchor subsidiary, Stanbic Bank Uganda Limited. Our new subsidiaries are continuing to deliver green shoots of hope for our strategic direction, in spite of the challenging operating environment.”
Absa Group Earnings Increased 27%, Demonstrating Continued Strong Recovery
Absa Group headline earnings increased 27% to R11 billion (2.5 trillion) in the first half of the year as revenue increased, demonstrating a continued strong recovery from the global economic downturn in 2020.
According to the report, Absa exhibited a solid pre-prevision profit for the first half of the year, supported by revenue that rose by 14%, underpinned by growth across our business units and supported by a rebound in the insurance business in South Africa and increased interest rates across key markets. Net interest income and non-interest income rose 12% and 18%, respectively.
“Our strong results reaffirm the strategic choices we made in 2018 and are testimony to the work we have undertaken in creating a business that is closer to customers,” said Arrie Rautenbach, Absa Group Chief Executive Officer. “With a strong, experienced leadership team and an improved operating model, we now have a strong foundation for outperformance.”
Top Finance Bank Uganda Acquired By Djibouti’s Sab
Top Finance Bank Uganda has been acquired by Salaam African Bank (SAB), a financial firm based in Djibouti. The development was confirmed by the Bank of Uganda (BoU) in a communication issued on Monday.
“This is to inform the general public that M/s Salaam African Bank (hereafter SAB) with its headquarters in Djibouti has acquired Top Finance Bank Limited (hereafter TFB),” BoU said in a statement.
Accordingly, the acquisition was concluded following BoU approval ‘in accordance with provisions of the Financial Institutions Act (FIA), 2004 (as amended) and its implementing Regulations.
JULY
Mbire buys Shs 2bn shares from Bank of Baroda
Charles Mbire acquired a stake in Bank of Baroda through a single purchase of 23,529,400 shares worth over Shs 2 billion.
Sylvia Wairimu Mulinge named CEO MTN Uganda
Ms. Sylvia Wairimu Mulinge has been appointed as Chief Executive Officer of MTN Uganda effective October 1, 2022.
Mulinge who replaces Wim Vanhelleputte, joins MTN from Safaricom Plc where she currently is Chief Consumer Business Officer. In this role, she is responsible for driving the consumer telecoms business, managing the overall brand, and leading the transformation of Safaricom to become a digital lifestyle enabler of consumers’ lives.
Mulinge joined Safaricom in 2007 and has occupied various senior roles over the years, including Head of Retail, Head of Sales, and Director of Consumer Business. She is a graduate of the University of Nairobi, Kenya, where she received a Bachelor of Science degree (first-class honours).
JUNE
Pesapal Uganda Licensed by Bank of Uganda
Pursuant to the National Payments Systems Regulation, 2021, Pesapal Uganda received a Payment System Operator license from the Bank of Uganda.
Pesapal has been at the forefront of the Digital Payments revolution in Africa for over a decade. By leveraging technology to make financial services affordable, convenient, and secure, Pesapal is empowering tens of thousands of merchants and millions of consumers in markets across Africa to thrive.
Pesapal Uganda Country Director Martin Barungi said with the Bank of Uganda’s regulatory green light, the company will be able to hunker down in our continued effort to change the face of digital financial services in Uganda as a key stakeholder of its financial ecosystem.
MAY
MTN Uganda pays Shs 839 billion in taxes in 2021
MTN Uganda announced a record payment of Shs 839 billion in taxes in 2021 reaffirming its position as a top taxpayer.
The revelation was made by Charles Mbire at the first general meeting of the company since it was listed on Uganda Security Exchange in December 2021.
Afriland First Bank exits the Ugandan market
Afriland First Bank closed its operations in Uganda over increasing financial losses.
Bank of Uganda approved a request by Afriland First Bank Uganda Limited to apply to the High court for voluntary liquidation, deputy governor, Michael Atingi Ego has announced.
According to Atingi Ego, Afriland’s decision for Voluntary Liquidation was an outcome of a strategic business review by the shareholders; of Afriland First Group. He however noted that Afriland First Bank Uganda Limited is a solvent financial institution and therefore all depositors and other verified creditors shall be paid in full.
“All depositors of Afriland First Bank Uganda Limited are encouraged to withdraw their deposits from Afriland First Bank Uganda Limited’s premises. All other verified creditors shall be paid in full by the liquidator that has been appointed by shareholders of Afriland First Bank Uganda Limited,” the deputy governor said.
APRIL
Absa Bank Uganda announces Shs 110 billion profit after tax in financial Year 2021
Absa Bank Uganda has announced a profit after tax of Shs110 billion for the year ended December 2021, representing a 169% growth in profitability from the previous year.
“Despite a tough operating environment, economic recovery was faster than anticipated evidenced by the remarkably resilient performance and expansion of the economy by an estimated 5.3%. Private sector business growth was underpinned by a rebound in activity in agriculture, construction, and public administration. We registered a significant drop in impairment of 77.8% as a result of increased improvement in the construct of our loan book indicating a faster than anticipated recovery from the adverse economic impact of the various #Covid-19 containment measures,” said Mumba Kalifungwa, Managing Director, Absa Bank Uganda.
The bank also delivered a 15.4% growth in revenue to Shs365 billion indicating an Shs21 billion growth from 2020 attributed to sustained customer deposit performance throughout the year, coupled with market liquidity.
DFCU Bank registers a decline in profits by 45%
The board of DFCU bank suggested that noprofits should be extended to shareholders in the wake of enlisting a drop in profits of Shs 11 billion last year.
The Bank’s General Manager George Ochom said the board saw it wise not to dispense any dividends to shareholders so that it could keep the financial institution with enough liquidity to deal with any possible emergency.
Mathias Katamba, the Chief Executive Officer of DFCU said the profits tumbled from Shs24 billion to Shs13 billion compared to the previous financial year.
MARCH
Stanbic Uganda Profits up 11% to Shs 269b in 2021
Stanbic Uganda Holdings Limited (SUHL) has announced it grew its net profits by 11% in 2021 to earn Shs269 billion from Shs242 billion in 2020, driven mainly by strong growth in non-interest income earned by mostly Stanbic Bank Uganda Limited, its anchor subsidiary.
Other subsidiaries of SUHL include SBG Securities Uganda Limited, Stanbic Business Incubator, Stanbic Properties Limited, and FlyHub Uganda; however, these are largely new companies still in their formative stages to support the bank and serve its customers beyond offering traditional financial services.
According to the financial results released today, Stanbic Bank Uganda’s net profits in 2021 increased to Shs275 billion from the Shs243 billion registered the previous year, largely driven by growth in trading income.
Non-interest revenue reported strong growth of 19.0% seeing earnings of Shs401 billion from Shs 341 billion the previous year. Much of the growth in the non-interest revenue was attributed to trading income which increased to Shs233.7 billion from Shs 177.3 billion the previous year.
NSSF pays out Shs78.8b to over 4,415 eligible midterm members
The National Social Security Fund (NSSF) paid out Shs78.8 billion to 4,417 eligible members to date, Shs20.8 billion above its weekly target of Shs 50 billion, following the mass application of the mid-term benefit that started in March.
NSSF Managing Director Richard Byarugaba said that the payments reaffirmed the Fund’s commitment to avail liquidity to pay all midterm benefit obligations within the stipulated period.
“We committed to payment of Shs50 billion per week starting on March 17, 2022. So far, we have paid above our weekly target by over Shs28.8 billion. This implies we have paid 30% of the total members who have applied for midterm within the first week since we commenced payments,” he said.
Uganda loses over Shs38b in the illicit trade of tobacco
Uganda loses over Shs38 billion in taxes due to the illicit trade of tobacco. The illicit trade of tobacco alluded to lax enforcement of existing laws in the country.
Speaking at Uganda Breweries Limited’s (UBL) event which is aimed at sensitizing the public and the relevant authorities on the adverse effects of illicit alcohol and how to spot the difference between licit and illicit Billy Tsama, the Fiscal Affairs Manager British American Tobacco in East Africa said 24% of the tobacco consumed in Uganda is illicit.
Airtel Uganda to list 20% of its shares on the Uganda Security Exchange
The giant telecom service provider Airtel Uganda is set to list 20% of its shares on Uganda Security Exchange (USE), Eagle Online learned.
The intention to list part of its shares has been confirmed by Manoj Murali, the Managing Director of Airtel Uganda on the sidelines of unveiling a campaign to award excelling users of technology to make a difference in the lives of people.
“It is true we will be listing 20% of our shares on Uganda Security Exchange (USE) by December 2022,” Murali said.
FEBRUARY
SEACOM takes over Africell assets in Uganda
SEACOM, the pan-African telecommunications service provider, announced it will acquire selected infrastructure assets from Africell in Uganda. The acquisition marks a significant step for SEACOM and is a testament to the company’s commitment to providing, competitive end-to-end connectivity and ICT solutions across the region.
Telecom service provider, Africell announced its exit from the Ugandan market after establishing that it is struggling to be a leader not only in terms of mobile services but also in terms of community impact and the digitally led transformation of society.
Toyota Uganda Limited rebrands to CFAO Motors Uganda
Toyota Uganda Limited has announced that it has changed its name to CFAO Motors Uganda. The transformation is aimed at paving the way for the progressive expansion and provision of a range of solutions to their customers.
Since 2005, Toyota Uganda has had over 200 employees who offer complete mobility solutions. According to Thomas Pelletier, Managing Director of CFAO, the new name CFAO Motors Uganda provides a full range of services the company offers in addition to the exclusive distribution of new Toyota vehicles in Uganda.
JANUARY
BoU Governor Emmanuel Mutebile is dead
The Governor of the Bank of Uganda (BoU) Prof Emmanuel Tumusiime-Mutebile has passed on.
Mutebile died at Aga Khan Hospital where he was admitted on January 2, 2022 after he collapsed on December 31, 2021. He has been on and off duty due to diabetes-related complications.
According to a source close to the family members, the governor has been in a coma for the last couple of days. The source also said the big man contracted #Covid-19 while at the health facility.
