E-Newsletter June 2011

PSFU Sensitises Members about BUDS-DFID

Mr. Daniel Kisekka Manager BUDS-DFID sensitising the PSFU Members about BUDS-DFID

PSFU has embarked on training its members on a monthly basis. The objective is to equip the members with relevant skills to run their associations professionally. PSFU conducts these trainings on a monthly basis. On 1st July 2011, PSFU sensitised its members about the BUDS-DFID project and how they could benefit from it.

Private Sector Foundation (PSFU) through the Office of the Prime Minister (OPM) received funding from the UK Department for International Development (DFID) under the Northern Uganda Post Conflict Recovery and Development Program (NUPRDP). The 13 million British Sterling Pounds Grant Scheme is intended to support business improvement, value addition and job creation in the greater North and parts of Eastern and North-Western Uganda. The matching grant Scheme will also assist businesses in the PRDP regions to expand their operations and invest in the necessary technologies.

What is BUDS?

BUDS is a Scheme that offers financial support in form of cost-share grants to micro, small and medium enterprises (MSMEs) to enable them obtain and use business development services for purposes of becoming more productive and competitive. The Scheme will also support value addition processes undertaken by agro based industries as one of the ways of boosting the economic recovery of Northern Uganda. BUDS will adopt a holistic approach to supporting other sectors including manufacturing, commerce, services, commercial farming, etc in order to achieve the objectives of the NUPRDP.

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What is the objective of BUDS?

The objective of BUDS under the Post Conflict Recovery and Development Program (PRDP) is to stimulate pro-poor economic growth in Northern Uganda and to better retain the economic benefits of especially agriculture in the Post Conflict regions. The project is aimed to improve post harvest handling, processing, storage and marketing of agricultural and pastoral production through investment in essential equipment, Technical Assistance (TA) and training. PSFU POST BUDGET LUNCHEON HELD

Members of the Private Sector at the Post Budget Luncheon Organised by PSFU on 10th June 2011

Following the 2011/12 budget submissions to Parliament by the Minister of Finance, Planning and Economic Development on June 8th 2011, PSFU organized a Post Budget Luncheon on June 10 2011 to analyse the above- mentioned submissions in line with the Private Sector proposals to the budget process last October. The luncheon was well attended with over 150 guests. The guest of honour was Hon. Maria Kiwanuka Minister of Finance Planning and Economic Development (MFPED), who was represented by Hon. Aston Kajara, who appreciated the continued dialogue between the Private Sector and Government. A number of the Private Sector budget proposals for 2011/12 received due consideration in the recent budget submissions to Parliament. A detailed synopsis of these issues can be obtained from the PSFU website www.psfuganda.org.ug below is a summary of key concerns that the Government has responded to in FY 2011/12;

1. Energy; 828 Billion Allocated to Karuma Project (part of the oil revenue), more Energy projects prioritized, Supply of solar energy VAT exempt 2. Roads; Allocated 1,219.41 BN to Roads; 43 Billion allocated to City Authority for construction and maintenance of Kampala City roads, Fast track rehabilitation and continuous maintenance of district and community roads, Entebbe – Kampala highway to be commenced – USD 350m loan from China, Roads linking Uganda to Southern Sudan earmarked for upgrading and Key bridges including the Nile crossing earmarked for construction. 3. Railway Transport; Operational efficiency along Kampala – Mombasa line to be improved, Rehabilitation of Kampala – Malaba railway will be undertaken, Rehabilitation of Tororo – Pakwach line to be commenced 4. Water; rehabilitation of MV Pamba, Operationalisation of the Southern route through Mwanza to be undertaken 2

5. ICT Infrastructure; 1430 km of Optic fibre cable laid, Now connecting to upcountry towns 6. Education; Additional allocation of 115.9Bn to Education Sector, Additional shs 58.8 Bn to operationalise BTVET programme, Committed to support Private Sector BTVET institutions with equipment, Develop and retain the national expertise in mining, oil and gas 7. Employment; 44.4BN allocated to address employment challenges, 25BN for youth entrepreneurship venture capital fund, 3.5 BN for youth entrepreneur training under EU, Additional 1BN for BDS clinics, 16.5 BN for work space in markets starting in Kampala 8. Health; Increased funding for drugs worth 96 Billion, 24 billion allocated to Maternal and Reproductive Health, Rehabilitation of referral hospital, Construction of Maternal and Child Health Centre, Construction of new district hospitals in and 9. Agricultural Development; Agricultural Credit Facility maintained at 30BN matched by commercial banks, Construction of warehouses and silos to improve storage, 9.5 BN allocated to strengthen disease and pest control, 2BN allocated for rehabilitation of warehouses at sub county level. NAADS; 133BN allocated to NAADS to improve seeds, Maintained the agricultural finance facility at 60 Billion, 5BN allocated for irrigation and water harvesting, Import duty on hoes reduced from 10 to 0, Import duty on premixes removed 10. Implementation and Budget Discipline; Commitment to cut excesses in public expenditures, To Conduct immediate forensic audit of the Gov’t payroll, Holding accounting officers individually accountable, Implement performance contracts 11. Regional Integration; Uganda’s List extended for one more year

Some Pending Issues

1. Air Transport; i.e. Improving air infrastructure to align services to international standards, Consider buying shares in Air Uganda and Fast track the upgrading of aerodromes 2. Tax Policy; Raising the PAYE threshold to Shs 250,000/= to increase the purchasing power, Raise the VAT threshold from UGX 50M to 100M and Harmonize across EAC, Explore the possibility of raising revenue through taxes on Real Estate Transactions, Maintain duty exemption of industrial spare parts and Re-align Uganda’s tax policy with the EAC integration process 3. Credit; Availability of long-term and affordable business finance 4. Regional integration; review target of Implementation of the Monetary Union, 5. Standards; Expedite harmonization of standards from the current 1080 to over 5000 expected

PSFU ANNUAL GENERAL MEETING; New Board Elected

Members of the Private Sector during the AGM

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Private Sector Foundation Uganda (PSFU) held its Annual General Meeting (AGM) where new Board Members were elected. The event took place at UMA Main Exhibition Hall. The following are the Board members; Hon. Gerald Ssendaula Chairman, Dr. Eve Kasirye Alemu Vice Chairperson, Eng. Martin Kasekende, Dr. Ben Mbonye, Mr. Mwine Jim Kabeho, Mr. Onapito Ekolomoit, Mr. Mathias Katamba, Mr. Latima Mukasa, Mr. Walter Ogwal, Mr. Everest Kayondo, Mr. Kityamuweesi Musubire, Mrs. Harriet Ssali, Mr. Dan Musiitwa, Mr. Juma Yusuf Walusimbi, Mr. Nelson Ofwono and Mr. Gideon Badagawa Board Secretary.

BUDS-DFID PROJECT LAUNCHED IN GULU

Private Sector Foundation Uganda launched the Business Uganda Development Scheme supported by the UK Department for International Development (BUDS-DFID) on 6th May 2011 at its office on plot 22 Churchill drive in Gulu. The launch was done by the Prime Minister of Uganda who was represented by the Minister in charge of Northern Uganda Hon David Wakhikona. Hon Wakhikona called on the Business community in Northern Uganda to utilize the grant for business success and competitiveness. He added that it was the right time to do business to develop the North.

From right- Representative from the Office of the Prime Minister Mr. Maxwell Chrysolite Kamanyire, Dr. Maggie Kigozi Executive Director UIA, Dr. Eve Kasirye- Alemu Vice Chairperson PSFU, Hon David Wakhikona Minister in charge of Northern Uganda, Gideon Badagawa Executive Director PSFU and Daniel Kisekka Manager BUDS-DFID.

Mr. Daniel Kisekka Manager BUDS said, the objective of BUDS under the to stimulate pro-poor economic growth in Northern Uganda and to better retain the economic benefits of especially agriculture in the Post Conflict regions. The project is aimed to improve post harvest handling, processing, storage and marketing of agricultural and pastoral production through investment in essential equipment, Technical Assistance (TA) and training.

The launch was attended by among others representatives from the UK Department for International Development (DFID) Lilian Akot Head of Communications who represented the Head of Office Jane Rintoul. Mr. Maxwell

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Chrysolite Kamanyire from the Office of the Prime Minister, Prof Magie Kigozi UIA, the business community and the general public.

Members of the Business Community in Gulu during the launch of BUDS- DFID

Dr. Eve Kasirye- Alemu Vice Chairperson PSFU who represented the Chairman PSFU highlighted the expected benefits of BUDS;

The BUDS project will provide up to 60% cost-sharing reimbursable grants for businesses to: (a) Stimulate pro-poor economic growth in Northern Uganda and to better retain the economic benefits in the North (b) Improve post-harvest handling, processing, storage and marketing of agricultural and pastoral production (c) Increase performance in all sectors including manufacturing, commerce, services, commercial agricultural consultancy, business associations farming cooperatives etc. (d) Maximize value addition channels and supply chain management; (e) Development of rural enterprise based on sustainable utilisation of natural resources; (f) Development of labour-intensive industries for employment creation; (g) Elimination of gaps in the supply chain leading to processed agricultural products; (h) Development of links between investors and the local economy through the supply of raw materials, employment and training; and (i) Promotion of trade by rural enterprises including trade outside of their locality.

BUDS-DFID team

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FINANCIAL LITERACY TRAININGS; PSFU &

Private Sector Foundation Uganda (PSFU) in partnership with Centenary Bank has organised a series of capacity building and financial empowerment trainings for Small and Medium Enterprises (SME’s) in Uganda. The trainings started in April 2011. The purpose of the empowerment trainings therefore is to train and equip small businesses with necessary skills to enable them become more competitive and bankable. This will in the long run stimulate growth of small and medium enterprises with a focus on banking.

The objective of the trainings is to provide business information, capacity building and networking for Uganda people engaged in commercial agricultural and trade activities.

So far over 750 business enterprise owners have attended the financial literacy trainings in three regions of Uganda i.e. Northern region in Lira, Eastern region in Mbale and the Western region in Mbarara.

Some of the key challenges faced by the Business Enterprises which have participated in the trainings include; . “Lack of capital” was identified as one of the major challenges. . Lack of Access to markets featured as another concern though it is not clear whether they lack transport to already identified markets or whether they lack whom to sell to; . Climate change issues such as floods, landslides and long droughts . Lack of agro inputs was one of the other noted challenges. . Book keeping featured as a challenge to both agric and non agric businesses. . Other Issues about entrepreneurship competencies in general were raised. These included; how to manage competition; How to manage employees; How to write a business plan; etc. The next training is scheduled to take place on 21st July 2011 in Arua.

NEW PUBLICATIONS AT PSFU; 1. PSFU Business Directory 2011 now available free of charge 2. Platform for Action 2011; A synopsis of Private Sector Policy issues

UPCOMING EVENTS;

. Financial Literacy Training in Arua on 21st July 2011 . International Trade Facilitation Expo 2011 27th -28th July 2011 at UMA Main Exhibition Hall Lugogo.

For more information Contact: PSFU, Plot 43, Road, Tel: 256-312-263850/ 0312-263849, 0312-261850 Fax 256-41-259109, P.O Box 7683 Kampala, Uganda, Email: [email protected], Website: www.psfuganda.org

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