By FLORENCE NAMUGANZA
Uganda is ranked 116 out of 190 countries in the World Bank ease of doing business report of 2020. The ranking is based on twelve parameters, ten of which include starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency, among others.
A swift change in Uganda’s economy requires several measures that improve this ranking, key among which is the import substitution and export promotion strategy, also premised in the domestic revenue mobilisation strategy.
Upon this background, URA organised the third e-Bomba ya business summit to expound on key trade and investment opportunities that foster the import substitution agenda, promote the Buy Uganda Build Uganda (BUBU) initiative and in turn grow the domestic revenue basket.
The panel brought together URA’s Asadu Kigozi Kisitu the Assistant Commissioner Field Services, Geraldine Ssali the Permanent Secretary Ministry of Trade, Industry and Cooperatives (MoTIC), and the clearing and forwarding fraternity represented by Frank Muramura – MD Jofra International Fowarders Ltd and Francis Otyama MD Geroma Ltd
According to Kigozi, URA is implementing a number of measures to foster import substitution such as; tax incentives for both local and foreign investors, 0% import duty for raw materials used to manufacture sanitizers, non-medical face masks, a 50% discount on costs for acquiring investment licence especially if a venture is being set up more than 50kms outside of Kampala.
In addition, URA facilitates growth of the industrial parks such as; Buikwe, Gulu logistical hub, Kapeeka, Mbale, Namanve, Jinja to tap into different local investment resource areas. As a result, URA officers are attached to the industrial parks to monitor compliance of the investors meant to establish industries for the development of our economy.
According to Geraldine Ssali, Government Agencies play 80% in either facilitating or derailing based on services provided towards ease in doing business and valuation of the supply chains in Uganda.
“We must partner at all levels to ensure that we boost growth in trade instead of devaluing, conduct self-checks and build skills to produce for international markets,” advised Ssali.
The Permanent Secretary recognised the strides made by Government Agencies towards digitizing processes to enhance trade facilitation. As a lead Ministry for investment, the P.S pointed out prospectus investment areas in Uganda such as the steel industry considering the large deposits of iron ore, pharmaceuticals especially vaccines for both human and Veterinary medicine, Oil and Gas, agribusiness coupled with Agri-tech, cereals, animal and vegetable fat (oil).
KACITA highlighted their commitment towards the success of government initiatives and noted the continuous dialogue with policy makers to ensure a balance between manufacturers and importers without suffocating the economy.
KACITA’s Ag. Chairman Musoke cited some challenges such as limited access to long-term financing, local production capacity to meet the needs of the business community, corruption from some government trade facilitation agencies among others.
He urged government to heavily invest in research that will uncover rich investment ventures that widen the tax base. He added that import substitution and export promotion is a gradual process that should not be forced onto the economy.
