THE REPUBLIC OF UGANDA
NCF: Shaping Investment Policy & Private Sector Development
+UGANDA’S ECONOMIC PERFOMANCE Prior to 2021 General Elections
EXCLUSIVE INTERVIEW AG: LawrenceWITH Semakula ON PUBLIC FINANCE MANAGEMENT REFORMS
Contents4. PS/ST’s Note 8. Editor’s Note 11.PS/ST’s Circular Highlights 12.Support National Public Sector Procurement Policy implementation for a better Uganda - Kasaija 16
43. Did you know? 46. Highlights on Uganda’s VISION tax system 50. INTERVIEW: Julius “ A Compe��ve Economy for Na�onal Development” Mukunda - CSBAG Executive Director 52. MoFPED working with 38 50 Partners MISSION 53. Monitoring Government 14. Challenging but Optimistic adherence to the To Formulate Sound Economic Policies, Maximize 16. “GREEDY VISITOR” COVID- 19 PFMA, 2015 20. INTERVIEW: We have reformed 54. Enhancing Government Revenue Mobiliza�on, Ensure Efficient Alloca�on and Public Finance Management of Uganda’s budget Accountabilty for Public Resources so as to Foster Sustainable 27. ZOOM Security Challenges transparency ranking 28. Investors Assured 56. AG’s Annual Report Economic Growth and Development 32. Qoute 2019/2020 34. National BFP at a glance 58. Making gaming Fairer & 36. Uganda’s Bold step to boost its Safer CORE VALUES business competitiveness 60. Uganda Microfinance 42. EDPR Regulatory Authority Professionalism, Result - oriented, Efficiency and Commences licensing process for SACCOs.
Effec�veness, Teamwork, Integrity, Transparency and Innova�veness THE REPUBLIC OF UGANDA 11 64. Pictorial
PUBLISHED BY Ministry of Finance,Planning and Economic Development. 0414707259,0414707319,0414707115, 0414707109 plot 2-12 &2A,Apollo Kaggwa Road. www.finance.go.ug NCF: Shaping Investment Policy & Private Sector Development EDITORIAL +UGANDA’S ECONOMIC Keith Muhakanizi, Editor-In-Chief PERFOMANCE Prior to 2021 General Elections Apollo Munghinda, Editor EXCLUSIVE INTERVIEW Isaac Shaka AG: LawrenceWITH Semakula Junior Muhumuza ON PUBLIC FINANCE MANAGEMENT REFORMS
DESIGN AND LAYOUT Julius Kamya Andrew COVER PAGE PHOTOGRAPHY MOFPED @mofpedU MoFPED Press Team MOFPED#DOING TIMES|ISSUEMORE 2 3 Keith Muhakanizi PS/ST’s NOTE Permanent Secretary and Secretary to the Treasury
Ministry of Finance, Planning and Economic Development. Greetings
Happy New Year to all our Stakeholders,
I welcome you to this Issue of the MOFPED TIMES, a platform that has been designed to enhance knowledge and understanding about MoFPED and its core mandate.
First of all, I congratulate the People of Uganda upon electing their leaders for the next five years.
I am particularly pleased to note that despite the challenges we are facing, including the effects of COVID-19, our economy has remained resilient and there are signs of great recovery.
Now that the electoral process has ended, I call upon Ugandans to engage in productive activities so that our economy can even grow stronger. This is my clarion call to all Ugandans because no one else will do it for our Country.
We shall continue to formulate sound economic policies that enhance economic stability and development.
I am optimistic that the Economic interventions spelt out in NDP III will lead this Country to middle income status sooner than later.
I wish you pleasant reading!
Keith MuhakaniziPermanent Secretary and Secretary to the Treasury
4 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 5 Artistic impression of the new Office block for MoFPED
Construction of the new Office block for MoFPED in progress
Aerial view of 60 acre Sino-Uganda Mbale Industrial Park.One of the 22 National Industrial parks in Uganda launched by President Yoweri Museveni in March,2020. It has capacity of 60 factories and is expected to create 15,000 jobs.
6 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 7 EDITOR’S NOTE Dear Stakeholders, Happy New Year 2021!
In this Issue of the MOFPED TIMES we bring you more privileged Insights!
In an exclusive interview, the Accountant General, Lawrence Semakula takes you on the journey of managing Uganda’s public resources and the reforms that have been put in place to safeguard public finances.
Also in this Issue, read about Private Sector Development in Uganda and its huge impact on the Economy.
Did you know that our Economy has been rated as one of the best globally in the midst of COVID-19 pandemic and its effects?
What about the reforms aimed at saving billions of public funds siphoned annually through public procurement?
These and more, including testimonies that Partnerships work are all in this edition of the MOFPED TIMES.
Finally, next time you plan to have a Zoom meeting, we give you tips on how to secure your experience.
Enjoy your reading! Apollo Munghinda Principal Communications Officer
Apollo Munghinda Principal Communications Officer
Ministry of Finance, Planning and Economic Development.
8 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 9 PS/ST’s CIRCULAR HIGHLIGHTS 3RD QUARTER (JANUARY TO MARCH) EXPENDITURE LIMITS FY 2020/2021
The Expenditure limits were based on the Government Annual cash plan adjusted to take into account revenue performance in the first half of the Financial Year and the projected revenue collections to the end of the Financial Year 2020/21
The expenditure limits also took into account Cabinet decision on the efficiency savings from the non-critical activities in light of the COVID-19 Pandemic and these include workshops and seminars, National Day celebrations, Travel abroad, Welfare and Entertainment.
The Expenditure limits fully prioritised Salaries, Pension and Gratuity in line with the Quarterly projections and submissions received from Accounting Officers.
The Supplementary expenditure requirements which were approved by Parliament were accommodated in this release.
One-half of (50%) of the Annual Budget for Missions was released to minimise loss on poundage while one third of the Local Government Development allocation was programmed for release in this third quarter to avoid un spent balances at the end of the Financial Year.
Regarding external financing, the third quarter allocations are based on received and projected disbursements by the Development Partners.
Rent and Utilities payment should have first call on third quarter allocations for the non- wage recurrent budget of votes.
Accounting Officers have the responsibility of making timely payments of Salaries, Pension and Gratuity (28th day of every month) and within 14 days for supplies and other services provided by the Private Sector.
Funds for Capitation grants to cover term one of the school year were also provided this quarter. However only funds for candidate classes and requirements to meet Standard Operating Procedures (SOPs) were initially released to schools.
The Expenditure limits fully prioritised Patrick Ocailap Deputy Secretary to Salaries, Pension and Gratuity in line the Treasury with the Quarterly projections and Ministry of Finance, Planning and submissions received from Accounting Economic Development. Officers.
10 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 11 absorption, increase in domestic arrears and in some cases cost over runs, according to the Support National Public Ministry. The Finance Ministry maintains that it was more critical for Uganda to put in place such Sector Procurement Policy a policy framework to propel the public sector procurement system to deliver value for money in all government attainments. implementation for a better Kasaija explains that through sustainable public procurement, the policy will open doors for inclusive growth to the local industries, innovation, local content, the environment Uganda - Kasaija and support for marginalized groups among others.
In the year 2019, the Ministry of Finance the public procument system. Its focus is also “I strongly urge all Ugandans to support the launched a procurement policy whose achieving a strengthened and enhanced implementation of the policy for a better primary objective was to improve public knowledge, skills and attitudes of the human Uganda,” Kasaija said. sector procurement in the country to be a resource interfacing with public procurement. socialeconomic tool in fostering economic The decision by the Finance Ministry to have development and transformation. The Minister said that the policy formulation the policy formulated was also informed by process also put into consideration regional policy analysis of different reports that included National Public Sector Procurement System The National Public Sector Procurement Policy cooperation and integration under the East the Auditor General’s reports, Internal Audit (NPSPS). The NPSPS is the overall framework for (NPSPP) which was formulated and approved African Community (EAC) and that it was reports, the Public Procurement and Disposal public procurement in any given country. by the Cabinet on April 1, 2019, introduced a harmonized with the international protocols of Public Assets (PPDA) audit reports of 2011 paradigm shift from the traditional approach and declarations. /2012, among others. It was realized that there According to the Accountant General, that views public sector procurement as an was need to provide guidance on the strategic Lawrence Semakula, since the early 1990s, operational function to a strategic function. The EAC advocates for member states direction of public sector procurement in to establish harmonized public sector the government has been pursuing strategic Uganda. reforms in public financial management Its vision is “A model public procurement procurement policy frameworks as drivers for aimed at supporting the Government’s goal of system that facilitates social-economic social-economic innovations and progress in The MoFPED Permanent Secretary and the poverty eradication through the achievement transformation.” trade. Secretary to the Treasury, Keith Muhakanizi of good governance, sustainable growth and While its mission states “To facilitate public said the policy was developed and formulated a stable macroeconomic environment. service delivery through responsive, flexible, A good procurement process is the one that through consultative procedures involving efficient and effective public sector obtains goods, works and services in the the Central and Local Governments entities, He said a lot has been achieved including procurement system.” correct quantity of the appropriate quality procurement specialists, civil society, service at the required time, from the best supplier, having a legal framework, institutional and providers, oversight institutions, Development established structure in public procurement. The national procurement policy performs a with optimum terms and under appropriate Partners and other stakeholders. Semakula disclosed that the policy was timely critical role in any country’s public financial contractual obligations. as government is under immense pressure to management system. Effective public sector “I am confident that the adoption of the policy increase service provision in form of schools, procurement according to the Finance Good procurements should also meet public will result in a more thorough, comprehensive hospitals, energy and expand the existing Minister, Matia Kasaija, was essential in fostering needs, secure value for money for the people and value adding public sector procurement infrastructure like roads, airports, railways economic development. and be fair to all providers. The value for money function, for the good of our country,” he said. takes into account the entire mix of timeliness, among others. Kasaija maintains that the policy was quality, optimal pricing as well as fitness for The key stakeholders according to Muhakanizi “It is envisaged that these efforts will trigger warranted by the need to advance in the purpose and risk. included PPDA, the National Roads Authority and enhance more efficient and effective public sector procurement processes. “This (UNRA), the Attorney General (AG), the UN public sector procurement in Uganda policy document provides strategic direction However various audits and studies have Environment, the World Bank, members of ultimately leading to economic transformation for the procurement function through a revealed that the acquisition of goods, PEMCOM, among others. and better delivery of services,” he says. defined policy framework aimed at achieving services and works in Uganda is still faced with government objectives,” Kasaija said. problems of delays, highly priced bids and In Uganda, public sector procurement fraud that have greatly affected the quality of The policy according to Semakula provides accounts for 60% of government spending procurement practitioners a good foundation It consists of six sections highlighting the critical service delivery by government. excluding wages and 30% of the nation’s GDP. for talent management in the public sector pillars that support public sector procurement It is by far the largest share of the GDP that is procurement system. to deliver value in public sector management. According to MoFPED, acquisition of goods, under the direct control of the GoU. The pillars include policy framework, works and services in Uganda face under “With clearly defined functional vision, mission, institutional framework, legal and regulatory deliveries in the range of 30-100%, up to 50% As it is with other developing countries, values and objectives, practitioners can now framework, human resource management, of abandoned sites, supply of up to 50% Uganda today faces tough policy choices with see where they fit within the public sector market practices, procurement operations substandard goods, services and works. The increasing population, financial crisis resulting procurement system,” he said. and integrity and accountability. delays range from 50% to 100% of the planned from meltdown on the global economy time, pricing hikes by up to100%, while up to caused by Covid-19 pandemic and a reduced This policy can be accessed on the Ministry of The policy stated objectives include ensuring 30% of the providers are incompetent on top resource envelop which sustains pressure on Finance website at www.finance.go.ug all acquisitions using public funds in all of improper solicitation documents. government to provide adequate and quality government institutions are effectively and services to the citizens. efficiently conducted on top of strengthening All these have not only contributed to poor good governance in key institutions within service delivery but also poor resource The policy is being executed through the
12 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 13 ECONOMY ECONOMY
Uganda’s economic performance in the relatively low and stable prices. The Fiscal Performance: low food prices countered the increase in In the second half of 2020, the other component of overall inflation – Government’s financial position was greatly core inflation. Core inflation increased in affected by the COVID-19 impacts and prior to the 2021 general elections the second half of 2020, driven by increased resulted into substantial revenue shortfalls transportation charges in response to the while necessitating additional spending on COVID-19 SOPs requiring operation of public health, economic and social programs. The transport vehicles at half capacity. Overall, dent in public finances was met through Challenging but inflation is expected to remain low and undertaking additional borrowing – both stable – within the Government target rates externally and domestic. for the next year. Going forward, high frequency indicators Exchange rate movement: of economic activities point to an optimistic optimistic The Ugandan Shilling remained case for a further acceleration in pace of relatively strong against the US Dollar thus economic activities in 2021, following the enabling the Bank of Uganda (BoU) to expected dissipation of the negative effects acceleration in activities related to the 2021 accumulate enough foreign exchange of the corona virus and the conclusion of general elections, which in past periods reserves which by end October 2020 stood the elections by end February 2021. has been associated with a scale-back in at 3.85 billion-which is equivalent to 4.9 private investment activities. months of the country’s future imports of Government will continue to implement goods and services. policies aimed at returning the economy to its Economic growth was hugely affected by potential growth levels through accelerating the impact of the global and domestic Financial market soundness: implementation of the COVID-19 economic response measures to the COVID-19 Despite BOU’s strategic effort of stimulus package. Additionally, Government pandemic, resulting in a slow-down in pace lowering of the Central Bank Rate (CBR) to remains committed to fiscal and debt to 2.9% in FY2019/20. The effects were enable commercial banks have enough sustainability and therefore, over the most keenly felt through disruption to key liquidity to ably lend to the private sector in medium term, Government will also intensify service sectors such as domestic transport a bid to spur economic recovery amid the implementation of the Domestic Revenue and tourism, while manufacturing and COVID-19 impacts, risk aversion tendencies Mobilization Strategy as well as rationalizing trade were affected by disruptions to supply by the banks arising from fear of private of expenditure. chains. sector loan defaults has kept lending rates high. The writer is an Economist in the Macro Despite the slowdown in pace, the economy Economic Policy Department demonstrated resilience amidst the shocks and performed better than many emerging and developing economies. According to a Bloomberg report, Uganda’s economy emerged fifth of the top ten world’s fastest growing economies in 2020 after Bangladesh, Ethiopia, Vietnam and China; and this trend is expected to continue. he year 2020 posed major economic The 2020 Foresight Africa report of the management challenges arising from Brookings Institute - an American Think Tank, external shocks – most notably the global T Uganda will be among the fastest-growing outbreak of the Corona Virus Pandemic economies on the African continent in the (COVID-19). The outbreak of the pandemic coming decade. The report concludes was at a time that the country was already that the economies of Senegal, Rwanda grappling with a locust invasion and the and Niger, among the top economies on effects of severe flooding in several areas the continent, will grow faster than Uganda of the country. The lockdown and other between 2020—2024. The report projects containment measures against the virus that Uganda will grow by an average of By adversely affected domestic demand and 7.2% annually during the period which is Caroline Namukwaya disrupted supply chains resulting in a severe almost twice the Sub-Saharan Africa growth contraction of economic activities in the first average of 3.9%. half of 2020. Domestic prices: While economic activities resumed in For most of 2020, domestic food the second half, the much slower pace prices remained largely subdued which affected domestic revenue mobilisation helped contain overall inflation. In the last efforts, which together with the additional three years, a combination of good weather health and social expenditure requirements conditions, increased provision of quality further constrained the fiscal space in the seedlings, better agricultural practices government budget. The second half of have all contributed to improved food the year was also characterised by the harvests and supply to markets resulting >>> 14 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 15 COVID 19 The Greedy Visitor COVID- 19
he greedy visitor is Covid-19 also known Besides, the Ministry adopted guidelines is- as the Coronavirus whose origin is be- sued by H.E the President, the Ministry of Tlieved to be Wuhan Province of the Peo- Health and Standard Operating Procedures ple’s Republic of China since December (SOPs) issued by the Ministry of Public Ser- 2019. This killer visitor respects no boundaries vice. Given the circumstances, the Perma- and has toured all countries in the universe nent Secretary/ Secretary to Treasury and and leaves descendants wherever it steps the Undersecretary/ Accounting Officer foot. It has rapidly spread to many parts of regularly issued various Internal Circulars the World like wild fire with devastating ef- guiding staff, clients and other stakeholders fects on both human beings and the world regarding their health and safety. economy. By Yusuf Mukoka The Ministry, therefore, implemented and Because of its threat to humanity, the World is still implementing the following post lock- Health Organization declared this killer virus down SOPs to guide staff in their operations a Pandemic (Public Health Emergency of In- and continued service delivery: ternational Concern).
Currently, the entire World is engulfed by i. Social Distancing: ensuring and the Covid-19 Pandemic. To date, more than enforcing decongestion of office prem- 100 Million people are infected by this virus, ises and limiting physical interactions be- while over 2 Million have died as a result of tween internal and external clients. The this killer virus. Hospitals and other health fa- Ministry adopted the 30% staffing levels, cilities the World over are overwhelmed and staff rotation and working from home, many health workers have succumbed to restricted entry of visitors/clients, use of this virus. Infections and death toll is increas- zoom meetings and limiting the number How MoFPED ing day by day and only God is aware when of people attending meetings. this will finally end. ii. Health and Safety for Employees has coped with the At the beginning, Covid-19 put the entire and Clients: ensuring and enforcement World into panic and most countries includ- of mandatory wearing of face masks, use ing our motherland Uganda were put under of thermal thermometer scanning and lockdown for more than 3 months. During regular sanitization/ washing of hands at this period, all economic and social activi- entrances and in offices. Others include; ties were greatly affected. regular sanitization of all office premises, “GREEDY VISITOR” doors handles, and locks and ensure ad- During the lock down, in March 2020, the equate ventilation by opening all doors Ministry of Finance, Planning and Economic and windows. Recently, the Ministry in- Development, developed a Business Con- stalled camera thermometers which are COVID- 19 tinuity Plan (BCP) to guide staff in the miti- stationed at strategic points to read tem- gation of economic shocks caused by the peratures upon entry into the building. Covid-19 Pandemic in the short and medi- um term and also ensure that the Ministry iii. Transportation: encouraged staff was able to respond to emergencies in pur- to use government vehicles and private WHOSE DEPARTURE IS ANONYMOUS suit of continuity and sustenance of service personal vehicles for commuting from delivery in the long run. The main objec- home to work. A staff van was put in place tive of the BCP was to minimize the risk of to help transport staff without government the Covid-19 Pandemic and enhance the and private vehicles. health and safety of staff, clients and other >>> stakeholders.
16 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 17 COVID 19
iv. Sick Staff and Staff Returning from they were all discharged after successful Abroad: staff with flu, cough, cold and treatment. The mass testing was halted other sickness are encouraged to stay because it wasn’t sustainable. However, at home and seek medical treatment. individual staff members and/or depart- While those returning from abroad are di- ments are encouraged to carryout tests rected to remain at home for a minimum whenever need arises. In case of positive of 14 days. cases, the affected officers are advised to seek medication, their offices tempo- v. Staff Sensitization: we have put rarily closed and sanitized, while the close up posters with information for staff and contacts are advised to isolate them- clients awareness about Covid-19 Pan- selves for at least 14 days. demic and to encourage them to ensure social distancing, wear masks, regular- The above are among other SOPs adopted ly sanitize, among others. These talking by the Ministry. We shall continue to imple- posters are displayed across the entire ment any new measures issued by the Minis- Ministry. try of Health and that of Public Service to en- sure the health and safety of our staff/clients vi. Lifts/Elevators: we minimized the and continued service delivery. numbers of people using lifts to a maxi- mum of four (4) and advised our staff to I would like to appeal to all our staff, clients use the staircases. Lifts are also regular- and other stakeholders to continue observ- ly sanitized. Recently, we have installed ing the SOPs by wearing masks, regularly Air Disinfection Units in the lifts to cleanse sanitize and exercise social distancing. It is them. important to note that the cost of a mask is just Ugx.2,000 or less but the cost of treat- vii. Travel Abroad and Field Trips: ment for Covid is very expensive. For in- our staff were restricted from travelling stance, Uganda private hospitals charge abroad and upcountry for field trips. between Ugx.2.5m to Ugx.5m per day. Testing of staff: The Ministry also carried out two mass tests of Covid-19 for all staff Cruel death takes us away from our dear and about 37 of our staff tested posi- ones forever and many Ugandans have in- tive and were hospitalized. Thank God deed died due to COVID-19. The only hope
is the vaccine that has been discovered fore, let us continue observing SOPs and and we are grateful to Government for the avoid touching the ‘MEN’ (Mouth, Eyes and steps so far taken to ensure that the vaccine Nose) but regularly be closer to the ‘WOM- is accessible to Ugandans. EN’ (Wash our hands, Observe social dis- tancing, Mask up, Exercise and eat well and It is important to note that the U.K. Govern- no to unnecessary travels). ment recently announced the new corona- virus strain on 19th December 2020. This fol- Stay well, stay safe and continue lowed an increase in cases in the southern #doing more. and eastern parts of England. Just over 1,100 Covid-19 cases with the new variant had The writer is a Senior Assistant Secretary been identified, according to a statement at the Ministry of Finance, Planning and from the UK Government. This new variant Economic Development . of the coronavirus “can spread more quick- ly” than prior strains of the virus which led to Prime Minister Boris Johnson imposing fresh restrictions on parts of the nation to control its spread. “When the virus changes its meth- od of attack, we must change our method of defense,” Johnson said.
In Uganda the infection rate is now very high and the death rate has greatly increased and has claimed big names like Al Hajji Dr. Sengonzi Edward Damulira Kirunda Kivejinja, MPs such as Hon. Waton- Under Secretary/Accounting gola (Kamuli MC, Hon. Kase Mubanda (Ma- Officer saka), Hon. Robinah Sentongo (Kyotera) among many others. Ministry of Finance, Dear colleagues, we still need all of you Planning and Economic alive and strong. The cure of this pandemic Development. begins with you and ends with you. There-
18 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 19 COVER STORY EXCLUSIVE INTERVIEW We Have Reformed Public Finance Management- Accountant General
ince 2000, Government under the Ministry of Finance, Planning and How do you manage to implement SEconomic Development, has rolled out these controls and ensure that internal a number of reforms aimed at strengthening mechanisms are followed? public finance management and proper To effectively and efficiently control utilisation of public funds. In an exclusive and manage public finance, we have interview, LAWRENCE SEMAKULA, the been undertaking various reforms geared Accountant General, explains the efficacy at increasing transparency, ensuring proper of these reforms and how e-Government accountability and timely reporting. has transformed financial management in In addition to the systems, we have the country. initiated the laws and legal frameworks to support implementation of these The Accountant General’s office is always systems reforms, we have undertaken in the backside quietly dealing with huge human resource capacity development issues. The public would like to know who through training, supporting establishment this man called Accountant General is and of professional institutions, reorganizing the role he plays? structures etc. As you know, the Accountant The Accountant General’s role General is also in charge of Government is specified in the Public Finance and accountants, procurement and inventory Management Act, 2015 under Section cadres. 46. It states that subject to this Act, the Accountant General shall be responsible Which systems reform have we come up for; with? They are many;
a) the compilation and management of 1)IFMS the accounts of votes, First, we tried to increase transparency, b) the custody and safety of public money, accountability and efficiency through c) the resources of Government, automation of Government financial d) the custody of all Government systems. We therefore, introduced the certificates of titles for investments and Integrated Financial Management System e) maintenance of the register of (IFMS). IFMS automated Government Government investments. Financial management especially the budget execution processes. The IFMS Under the same Section sub section has multiple in built controls based on the 2, the Act goes further to say that for the legal and regulatory framework. We track purposes of sub section 1, the Accountant transactions any time. This functionality has General may give all accounting officers also been availed to oversight institutions. general instructions, guidelines and This creates transparency. procedures which are consistent with the Lawrence Semakula Act and regulations under the Act. 2)Electronic Funds Transfer (EFT) Accountant General This therefore places the The other reform we introduced is the Accountant General in a very important Electronic Funds Transfer (EFT). This was Ministry of Finance, position within the Ministry of Finance and aimed at increasing efficiency and minimize Government. The Act further details the Planning and forgeries within the Government payment roles of the Accountant General under sub process. Government used to print cheques. Economic section 3 and 4.Key among these being You would find large crowds of people at Development. design and implementation of internal the Treasury waiting for cheques or bringing controls, specifying the basis of accounting input documents for cheque printing. And and the right to access any vote’s office as soon as the cheque could be printed at while conducting inspections. times you would find a similar cheque from >>> 20 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 21 EXCLUSIVE INTERVIEW COVER STORY COVER STORY EXCLUSIVE INTERVIEW
we decided that we should have a unified chart of accounts where we can easily trace expenditure items and also be able to compare and consolidate.
8)E-cash Through practice we have realised that cash is risky. So, we had to introduce cash withdrawal limits. Votes have a cash withdrawal limit of not more than 40 million per month. With the introduction of 40 million cap, most votes argued that most of transactions in Uganda are cash-based. So, we introduced e-cash wallet. What the e-cash wallet does is that there is no need to pay cash, but rather, payment can be done on somebody’s mobile number.
9)E-registration for suppliers This reform was aimed at easing registration of Government suppliers and also to ensure that all Government suppliers are bona fide tax payers. As long as you are a supplier of the Ministry, you go online, and once you are authenticated that you are a tax payer, you are automatically put on the Government system.
10)Re-engineering Procurement Processes Together with PPDA we are currently working on reviewing the procurement processes. We are working on reviewing the law, on downtown cleared, you would even find is the salary and pension decentralised different accounts and it was not easy reviewing operational issues like introducing Heads of MDAs the same cheque with different amounts or system. to match releases. We amalgamated all e-LPO and we are working hard to ensure meeting at different payee. With EFT funds are remitted This reform was aimed at 1) Minimising ghosts those accounts into one account, Treasury we launch EGP by the beginning of the FY MoFPED directly to the beneficiary account. It is easy on the payroll ,2) Ensuring that pension general account (TGA) and eventually now 2021/2022. to track and there are no middlemen to and salaries are paid on time, 3) Ensuring the TSA sub account. With the introduction There are many other initiatives and handle EFTS unlike before. that votes take responsibility for payments of IFMS we reconfigured the system to do we have undertaken like AIMS in Tertiary relating to the salaries and pensions payroll. automatic bank reconciliations. Institutions, NAVISION in foreign Missions etc. 3)Treasury Single Account (TSA) Before we introduced this system reform, all above all, because we are working with We also introduced the treasury single the salaries and pensions were centralised 6)Projects accounts review money, our systems are prone to hacking, account for proper cash management. at the Ministry of Public Service. Then we did what we call Government we have introduced a set of tools like the Before we introduced the Government That created a challenge in that project Accounts Review. So many >>> single account, we used to advance money the Ministry of Public Service was paying Government accounts used to be in to so many accounts on a quarterly basis whatever comes in, with minimum quality commercial banks. I can tell you, we used unto their treasury general account. Some assurance given the numbers. MoPS to have a case of fraud almost every day. of these funds on the accounts could not be would take blame for ghosts and delayed Most accounts in the commercial utilized and yet some votes were spending payments. It is now easier to apportion bank were for projects and at times faster and therefore we would have to blame given that each accounting officer these had huge balances that would borrow to meet the demand of the votes takes responsibility for his/her pension and remain redundant for sometime. So some that were spending faster and yet you had salaries payroll. commercial banks would temporarily use huge balances on votes that were slow the funds to buy Government Treasury bills. spenders. 5)Bank Account Rationalisation Besides Government would pay Before the introduction of the TSA The other reform I can mention is the interest to the commercial bank on its own we had reconciliation challenges as you rationalization of bank accounts. Votes money!! Again commercial banks had no had multiple accounts. This has now been had so many bank accounts. I remember incentive to lend as TBs were a more secured largely addressed as we had to rationalize when I joined the ministry, we had bank source of income. So, we decided to put the accounts and also reconfigure the accounts for recurrent, for statutory, for all accounts in Bank of Uganda. This gives us funds flow mechanism that demands daily development, for salary, for pension ,for leeway to monitor the money expenditure bank reconciliations. This in a way also has taxes etc. And then project accounts that on those accounts at all times. minimized fraud due to early detection and were based in commercial banks across the monitoring. country. This created a very big challenge 7)Chart of Accounts/ Budget Classification first it was cumbersome to reconcile all The other reform that we have done is the 4)Salaries and Pension decentralisation these accounts, these were prone to fraud Chart of Accounts or budget classification. The other reform we have implemented one would pay the same voucher from There was no unified chart of accounts. So,
22 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 23 EXCLUSIVE INTERVIEW COVER STORY COVER STORY EXCLUSIVE INTERVIEW
intrusion detection systems which track who the past when people used to cry about the public service disciplinary mechanism is know whether it is the education system or was on the system and at what time. So, we salary arrears, today, this has improved. But, very lengthy, but if you are a professional, and upbringing. But, it may be the upbringing, have a fully-pledged system to protect the I can also assure you that over the past five you do something unprofessional, then your because our generation is almost ending, systems that we have. years, we have tried to make sure that we institute can reprimand you. Institutes also and that generation was very different from pay arrears on time. have programs for continuous professional the current generation. We are seeing a There is an issue of delayed payments development including attempts to instill difference in the work ethic, perception and of domestic arrears. What explains these The reforms, many people thought, would integrity. So, we hope these interventions innovation. They don’t think about work first, delays? do away with corruption. However, the vice will work. However, the issue of corruption but a good car, nice houses etc. Government operates within a of corruption continues to take shape as is much wider. It needs concerted effort. When we were beginning, we used given budget. Now, the way these domestic public servants dig into the public coffers. Nevertheless, for us on our side, we try to to stay in the low cost areas, because that arrears should arise is when Government How are you addressing graft? make the systems more transparent and is what we could afford. But somebody, if has not given someone enough money From our side as finance managers, accountable. he or she is born in Kololo, they may find it compared to the appropriation. However, we think that to cure corruption within challenging to move upcountry or out of the many Accounting officers go out of government is to try and minimize human Are there any challenges that you have central district. That is something we need to the appropriation and start to commit interface for example for the procurement encountered during the process of rolling think about in the long run. We might ignore Government. That is where the major process, we must automate and re-engineer out these reforms? it, but for us who are working, we are seeing problem is. You commit Government when it the procurement process. What we are They are a lot. The first one is these social trends that must be addressed. has already given you a ceiling. Nonetheless, currently doing in addition to the electronic mindset of individuals. I think there is a The other challenge is the fact what we have done is a verification of all Government procurement, is to work on the wider perception that Government money that those who used to benefit from the domestic arrears. We now have a domestic law and the system. has no owner. That is a perception I have old system, are not happy with the system arrears’ data base, and we are working on We are also working on the human seen, which is very dangerous. There is also reforms as such they keep spreading false a strategy to clear the arrears. resource by setting up the institute of a perception that Government money can information etc. However, we continue We, of course, need to keep procurement professionals like the way we be spent anyhow. Those are the perceptions to manage these challenges through improving the systems. For example, unlike have done with the accountants. You know that people have. continuous training for all accounting The other challenge is the issue officers and staff. of an enabling environment for the systems, especially upcountry and Local There is also an issue of safety and Governments, The ICT infrastructure and management of public resources. People human resource capacity are low and are worried that their tax is not safe. How are challenging. This is a very big constraint you addressing this? on my office because for us we support Of course, for us we have no all these votes. We are overstretched, option but to ensure that what we have especially when it comes to supporting is safe. Even though people are worried, Local Governments. You go to a district, we have become very transparent. And and there is nowhere to put your computer. by implementing all these systems, we are The other challenge is the funding. trying to safe guard public resources. Funding these systems is very expensive, and sometimes, it gets to where Government Ugandans say that they are in the dark when has to do a tradeoff on whether to invest it comes to the contingencies and petroleum in reform systems or something else. But, funds. What is the status of these funds? once you have started these systems, then The contingencies fund first it important to make sure that they are well and foremost is underfunded, and it is maintained. underfunded because of the law. We had The other challenge is remuneration. initially said that we should separate the When we started these systems we used to contingencies fund from the consolidated give our staff top-ups, with a promise of pay fund so that we can raise money and reforms. But, that pay reform has not come, put it for solely the contingencies fund. which is a challenge to us in Accountant Unfortunately, when the law came out, it was General’s office. For example, if you have different. So, we have to get appropriation been working with somebody whose daily for the contingencies fund every year. routine begins at 6:00am and sometimes The percentage of the ends at mid night, but they never get contingencies fund is supposed to be 0.5% salary increments or review, then they are of the budget of the preceding year. Now, tempted to either look for another job which what was put in the contingencies fund has been the case for most of my support was not even a half of that, which makes staff or to adopt fraudulent behaviours!!.So, the running of the contingencies fund very it is very challenging. Of course, as finance difficult. But, none the less, we manage it we try to see how we can patch up here and it is audited by the Auditor General, and there. Therefore, the issue of pay reform and we have not had any issue other than is important. Of course, they raised our inadequate funding. salaries, some of us, but that of the juniors On the other hand is the petroleum also needs to be raised. fund. The little money that comes to the The other challenge is the type petroleum fund as of now are monies from of cadres that we are getting, and I keep the capital gains and bonus signatures. getting very worried for this country. I don’t Because we have not started production, >>>
24 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 25 EXCLUSIVE INTERVIEW COVER STORY DIGITAL
this fund is not very big as people think. time.. But, the law is very clear. The monies from the Petroleum Fund are expended through There an emerging issue of rising public One top cyber security story of 2020 the consolidated fund as part of the annual debt. How are you controlling this debt? budgets. We have not had any serious If we are borrowing and using the debt querries regarding the Petroleum Fund, we effectively, then there is no problem with publish the inflows and outflows and it is the debt. Our children and grandchildren audited twice a year. will need good roads, airports. Even at an individual level, you have to invest in order You recently released an annual report. to earn. It is very important. ZOOM SECURITY What are the salient issues or highlights? That is where the public should According to the Public Finance be focusing more that this money we are and Management Act, 2015, I am required borrowing, where are we putting it? For to produce an annual report on what I have CHALLENGES! example, those of us who come from tourism done every year to the Secretary to the areas, the roads are done, so the tourists will Treasury. It was in compliance to the law that be comfortable and there will be return on the report was prepared. The annual report that money. If you work on roads in Kampala he Covid-19 pandemic greatly changed - Reliability challenges i.e. ensuring 2019/2020 highlights what we did, what we and reduce traffic jam, that means there will the world of technology in 2020, and the availability at all times for example when intend to do and what challenges we had be an increase in productivity. cyber security sector was itself profound- staff relied on this single tool to plan, col- and also what requests we are making to T But, if people spend three to ly affected. laborate and make decisions, a single dis- management. four hours in a jam, so, they are productive ruption would negatively impact the overall for less hours. If we can borrow to start the But that is not to say a microscopic virus, schedule. How are you going to ensure liquidity among production of oil, that is important. The that causes “Senyiga Omukambwe”, had the public amidst the need to be frugal in investment you do today, if far better than the headlines all to itself, with developments However, the good news is that you can light of the COVID-19 financial shocks? the investment you do tomorrow. So, you around data privacy and protection, cloud maintain the security of your next Zoom For us as Government we are only rather borrow now, and be able to start security, vulnerability and much more, all meeting by ensuring that the following mit- squeezing non-essential areas. We have tried raising money to be able to repay back. seizing their share of the spotlight. The full igation measures are in place and activat- as much as possible to remove consumptive scale impact of the cyber-crime stemming ed. The following best practices are instru- By areas. But we are also managing the budget What is your last word? from these developments is yet to be fully mental to protecting the Ministry users from Byereeta Leone in hard times. So, the economic activities For us within public finance, it is analyzed. Zoom bombings and other security chal- Samson (PGDCS, CEH, have slumped, and we have to see how to very important to have transparent and lenges: CHFI) use the little money we get, effectively. effective systems if you have to register Millions of office workers turned to collabo- - Password-protect all of your meet- We have not stopped payment for economic growth. And we are committed ration tools such as ZOOM to keep in touch ings, otherwise anyone will be able to join, genuine suppliers. What we are not really to ensuring proper financial management in with each other during the Covid-19 pan- which only increases the risk. spending on are these foreign travels,we Government. demic as most workers were all in their lock- don’t see the use of foreign travels at this down locations. Cyber criminals started tar- - Use the Waiting room feature - it will allow geting the most popular video conferencing the meeting host to check each participant application - Zoom. Fake sites impersonating before letting them in. as genuine Zoom domains with the intention of capturing and stealing personal infor- - Keep the Zoom client updated - install mation such as your usernames/passwords, available updates immediately once they full names, home/office addresses/loca- are released. tions, credit card numbers, eavesdropping privates conversations e.t.c emerged. This - Do not share your meeting ID, as anyone caused a surge in Zoom security incidents. will be able to join. Notably there were challenges such as; - Disable participant screen sharing to mini- - Privacy shortcomings; Zoom has mize the risk of meeting hijacking been accused of passing on data to third parties, including Facebook, without notify- - Lock meeting when everyone has joined ing the users. - Ensure you know which accounts have - Zoom bombings; the practice of been inactive over the past month hijacking video conversations by uninvited parties to disrupt the usual proceedings. - Monitor anomalous admin activities as well as new and deleted users. - Data Leakages; Unauthorized trans- mission of data from within an organiza- - Do not use Personal Meeting IDs tion to an external destination or recipient through zoom application. Cheers to health, happiness, and prosperity in 2021 ! - Performance challenges i.e. ensur- ing Quality of Service; Zoom offers best-in- Ref:
26 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 27 INVESTMENT INVESTMENT
By MoFPED he Government used the 11th National most imports, hence growing the export “We expect more performance since NDP Communications Team Competitiveness Forum (NCF) to assure sector. III has dedicated a whole programme on Tboth local and foreign investors of the human resource development. These are enabling environment to do business in According to the Finance Ministry, Uganda’s foundational issues that must be addressed Uganda. economy continued to expand and grow before we can talk of being competitive,” despite the Covid-19 disruptions. Over the he said. The forum convened by the Ministry last five years, the country’s economic of Finance, Planning and Economic growth averaged 5% with its size more than The Government has since allocated Development (MOFPED) on November 26, doubling from Sh46.9 trillion to Sh101.0 trillion. over Sh1.5 trillion to address the Covid-19 2020 at the Uganda Bureau of Statistics pandemic related disruptions. (UBOS) Auditorium in Kampala was intended The Acting Director Economic Affairs at to identify best practices and emerging the Finance Ministry, Moses Kaggwa who He informed the participants that issues in private sector development, represented the Deputy Secretary to the Uganda has since been named the most competitiveness and the investment climate Treasury, Patrick Ocailap in his remarks said entrepreneurial country in Africa with the in the country. the critical infrastructure gaps were being entrepreneurship rate at 28.1%. closed and human development outcomes The NCF, a public private platform and an were improving. “This is an indication that there is an enabling initiative of the Finance Ministry is credited for environment for the businesses to exist and thrive,” he said.
He was however quick to indicate that a majority of enterprises in Uganda were still among other factors, characterized by a high mortality rate with almost 90% of the businesses operating for less than 20 years. “Others do not even make it to five INVESTORS years.” Ocailap revealed that high informal operations are not only affecting the development of innovations in the country but also enterprise development ASSURED interventions. OF THRIVING BUSINESS ENVIRONMENT AT NCF 2020 He blamed the slow growth and expansion Ag. Director Economic in the businesses to limited access to Affairs,Moses Kaggwa. appropriate financing created by the poor relationship between financiers and the >>> shaping the investment policy and private sector development in Uganda since 2006. The 11th NCF came at the time when the economy was faced with disruptions caused by unprecedented shock of the Covid-19 We expect more pandemic.
It was structured under the theme, performance since “Strengthening Evidence Based Private Sector Development Interventions.” NDP III has dedicated The theme was in line with the Ministry’s “ knowledge management framework to support development policy and investment a whole programme
promotion function as well as providing a dissemination and engagement platform. on human resource
According to the Finance Ministry, the pandemic which has brought the global development. These economy to its knees continued to threaten the future of the private sector are foundational issues “ competitiveness with the incomes of consumers globally affected as well as export markets. Participants at the 11th NCF on that must be addressed Whereas the pandemic has caused great 26th November,2020 at UBOS business challenges, the Ministry insisted that Conference hall before we can talk of it has unveiled opportunities to substitute being competitive 28 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 29 INVESTMENT INVESTMENT
small and medium-sized enterprises (SMEs). of Economics advised against multiple “The financers rate our SMEs as highly risky,” registration centres and the many processes The researchers also called for increased The researchers said there is need by the he said. the prospective investors have to go through role of the Uganda Development Uganda Export Promotion Board (UEPB) as well as the high costs of registration. Corporation (UDC) in rehabilitating existing to support the exporting enterprises of Ocailap guided the forum not to only aim value addition factories as well as setting up Ugandans in order to increase participation discussions at the public sector adopting the According to Dr. John Sseruyange, a new production facilities for strategic value along the export value chains through evidence-based development interventions lecturer at the School, this increases the chains development. promotion of joint ventures, partnerships, but also explore how the private sector cost of doing business in the country and equity financing and easing technology players can adopt evidence based undermines Uganda’s competitiveness with A need to focus on agro-industrialization to transfer. planning to compete for the regional and other countries. increase on the number and value of export “We shall continue supporting avenues for global opportunities. products as a precursor to access more developing our research and knowledge The report suggested automation of sophisticated export markets such as the utilization capacities for both private and At the forum, three reports on the state of information and the integration of data European Union (EU) was also suggested. public sector,” Ocailap said about the the Uganda’s Business Environment (SUBER bases regarding investment so as to improve reports. 2020), the Value Chains Status 2020 and the information flow. The research was done in The managing director of Nakifuma Farm State of the National Enterprise (STANE 2020) five cities of Kampala, Mbale, Jinja, Gulu, Company Limited, John Magnay called for Uganda aspires to become a middle- were discussed. and Mbarara. more support to agro-industries expressing income country by 2040, and according concern over government continued to the Finance Ministry, this will be attained The entrepreneurs and prospective It also suggested the need to increase gains importation of meat from countries such through strengthening the Country’s investors expressed concern about the long in the Buy Uganda Build Uganda (‘BUBU”) as Kenya and yet the talk is about import competitiveness for sustainable wealth bureaucratic procedures in dealing with policy and use it to attract more SMEs to substitution. creation, employment and inclusive growth. government. formalize and improve their operational efficiencies. The Dean of Entrepreneurship Centre Therefore, the Government’s The procedures involved when an investor at Makerere University Business School macroeconomic and development policy wants to start up a business in Uganda, The Executive Director Economic Policy (MUBS), Prof.Arnest Abaho who was the agenda over the medium term, Ocailap include registration of the company at the Research Centre (EPRC), Dr. Sarah lead researcher in the State of the Nations said will focus on speeding up the pace Uganda Registration Services Bureau, the Ssewanyana who was the chief investigator Enterprise (STANE 2020) report discussed the of industrialization in a bid to improve the Uganda Investments Authority and the in the Value Chains Status Report, discussed performance of the Uganda’s export sector, Country’s competitiveness, expand exports, Uganda Revenue Authority. the state of affairs and proposed strategies the opportunities for import replacement generate employment and raise agricultural to develop strategic value chains for and export promotion. productivity. In a research done by Makerere University sustainable agro-industrialization. School of Economics on the state of The analysis looked at exporting enterprises, He added that the aspiration was well Uganda’s business environment revealed Dr. Ssewanyana suggested the need for the performance of the import replacement catered for in the National Development that many entrepreneurs were being more investment into research to develop strategy, industrial parks, free zones and Plan III that is re-orienting the economic frustrated by government officials especially improved breeding stock for better quality the possible recommendations to building management towards a program- during registration. as well as strengthened linkages between an enabling environment for import based planning and resource allocation farmers and Research Institutions such as replacement and export promotion in framework. The researchers who were led by Prof. National Animal genetic resources center Uganda. Edward Bbaale, the Dean of the MUK School and Databank (NAGRIC and DB).
Acting Director Economic Affairs,Moses Kaggwa (R) appreciting a panelist at the 11th Deputy Secretary to the Director Budget, NCF Treasury,Patrick Ocailap Kenneth Mugambe
30 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 31 Quote
“The Ministry of Finance, Planning and “For any planned procurement of buses of Economic Development pledges its different capacities, you are urged to place commitment towards supporting the orders for supply from the local vehicle Ugandan South Sudan Traders and industry. This is aimed at promoting the locally will undertake prudent efforts towards manufactured motor vehicles, enhancing settlement of genuine claims of Ugandan local skills and employment opportunities South Sudan Traders based on mutual whilst building the Economy,” says Deputy agreement between Uganda and South Secretary to the Treasury Patrick Ocailap in Sudan,”says Finance Minister Matia Kasaija. his Circular to all Accounting Officers.
“GovernmentQuote has adopted Electronic “The Ministry has reviewed the submissions Government Procurement to revolutionize and noted the need to release funds to Government operations and consequently cater for printing of home study materials to improve efficiency in the Procurement facilitate continuity of learning for the learners function,” says Matia Kasaija. that are still at home,” said Ocailap in a “ January 2021 circular authorizing non-wage “additional expenditure limits amounting to UGX 23 billion to Local Governments for printing and supply of home study materials.
“There has been an upsurge in savings among a number of associations across the country in line with the objectives of the Emyooga initiative,” says Minister of State for Micro Finance, Haruna Kasolo “Debt has been used in a targeted and “The Emyooga beneficiaries must use it effective manner to unlock Uganda’s as cheap capital, they must receive it as productive capacity by investing in key a seed, grow it and payback in form of a infrastructure projects that are already revolving fund,” says Kasolo. bearing fruit,” says Minister of State for Planning David Bahati. “32 MOFPED TIMES|ISSUE 2 “ MOFPED TIMES|ISSUE 2 33 AT A GLANCE
3,585 billion is expected as budget support potential of the four (4) priority minerals – loans. Iron Ore, Gold, Copper and Phosphates. These are in addition to Marble, Silica Sand, NATIONAL BUDGET Government borrowing from the domestic Aggregate and Limestone. GROWTH market for fiscal purposes in FY 2021/22 is projected at UShs 2,484 billion, equivalent Petroleum will be critical in providing a PROJECTED to 1.5 percent of GDP. Borrowing from the new base to the economy, backward and TO REACH FRAMEWORK PAPER domestic market is projected to decline forward linkages with other industries of the POTENTIAL to an average of 1.1 percent per annum economy which will be critical for boosting over the medium-term to maintain debt MSMEs growth and jobs. EXTERNAL DEBT LEVELS FY 2021/2022 – 2025/2026 AT A GLANCE sustainability and promote increased private IS PROJECTED TO sector lending. The Government will boost competitiveness INCREASE TO 6.0 to 7.0 % he focus of the budget for FY as well as public and private construction. and build tourism resilience by advancing 2021/22, in line with the third National The total resource envelope, in FY 2021/22 is Amortization of external debt is projected to innovation, digitalization of the tourism Development Plan, is to pursue projected at UShs. 45,658 billion. increase to UShs 1,826 billion (equivalent to ecosystem and fostering sustainability. UShs1,826 T 1.1 percent of GDP) in FY 2021/22 from UShs Government will also focus on measures resource-led industrialisation, anchored on increasing production, expansion of Domestic revenues (excluding oil revenues) 1,221 billion in the approved budget for FY to restore the ecosystem, protect the the industrial base for value addition and are projected to amount to UShs 21,693 2020/21, and will average at 1.6 percent of environment from man-made destructions BILLION exports for viable agricultural and mineral billion in FY 2021/22 and will grow at an GDP per annum over the medium term. and strengthen early warning systems to commodities. In addition, to address average of 0.5 percent of GDP per annum protect persons/properties at risk of climate emerging socioeconomic issues, particular over the medium term, supported by Interest payments are projected to amount change effects. attention has been placed on the measures implementation of the Domestic Revenue to UShs 4,960.5 billion in FY 2021/22. Of this to address regional imbalance and poverty, Mobilization Strategy (DRMS). amount, UShs 3,850.0 billion is projected to In the FY 2021/22, Government will undertake speed up rural economic development, and cover domestic interest payments while measures by industry to support retention climate change mitigation and adaptation. Of the total domestic resources in FY UShs 1,110 billion will cater for foreign interest and creation of an estimated 500,000 jobs 2021/22, UShs 20,131 billion is projected to be payments and commitment fees. outside subsistence agriculture. FY 2021/22 will be the second year of raised from tax sources and UShs 1,562 billion Government will continue to enhance implementation of the NDPIII, whose overall from Non-tax revenue sources. Domestic As Government continues to support manufacturing capacity to support the goal is to increase household incomes and resources are projected to increase to economic recovery through provision of production of essential commodities within improve the quality of life of Ugandans. 13.6 percent of GDP in FY 2022/23, and will the economic stimulus package to various the overall import substitution and export $ This goal will be pursued under the budget average at 14.9 percent per annum over sectors, debt is projected to increase further promotion strategy. theme – Industrialisation for Inclusive growth, the medium term as economic activity is over the near term amounting to 49.9 Employment and Wealth Creation in FY expected to rebound when the effects of percent of GDP by end June 2021, and As critical enablers for production, trade DOMESTIC RESOURCES RESOURCE ENVELOPE 2021/22 the COVID-19 pandemic dissipate. peaking at 54.1 percent in 2022/23 before and social service provision, Government will IN FY 2021/22 starting to decline. continue to prioritise the development and PROJECTED TO The Budget for FY 2021/22, under the Government expenditure excluding The Government will prioritise investment in maintenance of infrastructure to reduce the INCREASE TO13.6% IS PROJECTED AT UGX theme Industrialisation for Inclusive Growth, domestic debt refinancing and external promoting value chains between farmers, cost of doing business and the delivery of Employment and Wealth Creation, will seek amortisation is projected to decline to UShs nucleus processors, and markets for key basic social services. IN to achieve the following development 35,069 billion in the FY 2021/22 (21.4 percent agricultural commodities. Government of GDP 45,658 outcomes: - of GDP) from UShs. 37,252 Billion (24.7 interventions will have special consideration Under energy, the Government will prioritise percent of GDP) in the current financial for smallholder farmers who may not easily enhancing the provision of affordable and FY 2022/23 i)Increased investment in the real economy year. be linked to the value chains without reliable energy, including interventions BILLION in order to generate employment and additional measures. that will enable electricity connectivity to increase products for import substitution and Regarding external borrowing, a total of industrial and processing centres as well as exports. UShs 10,330 billion is projected as external Government will build on existing the reduction in the cost of energy. ii) Enhanced quality of social services to financing in FY 2021/22. Of this, UShs 6,744 investments along the value chains of Government investment in innovation and build human capital, especially the youth billion is in form of project loans, while UShs minerals development and address the technology will be critical to support the that constitutes a majority of the population. challenges limiting the realization of full country’s industrialisation agenda. Specific iii) Enhanced efficiency of physical attention will also be given to the facilitation infrastructure to boost productivity. of the acquisition of appropriate skills set for iv) Improved provision of affordable manufacturing, minerals development and financing to unlock entrepreneurial potential agro-processing that hold great potential and improve competitiveness. for job creation. v) Enhanced efficiency of Government UGX spending and development interventions Regional development plans will be as well as effectiveness of public service developed to address poverty in the regions delivery. where poverty reversed and those where it Over the medium term, growth is projected is still above the national average. FY 2021/22 1,562 to reach potential levels (between 6.0 to 7.0 CREATION OF AN ESTIMATED percent), supported mainly by enhanced The other programme is good governance BILLION private sector activity due to increased which is essential for enabling development aggregate demand post Covid-19; in economic, political, environment and FROM NON-TAX increased returns from public infrastructure social sectors. This programme will improve 500,000 REVENUE SOURCES investments; increased activities in the oil adherence to the rule of law and capacity and gas sector; and recovery in industry to contain prevailing and emerging security OUTSIDE threats. JOBS which will be supported by manufacturing SUBSISTENCE AGRICULTURE
34 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 35 BUSINESS
ganda launched its third five year investor facilitation as well as business National Development Plan (NDP III) licensing and regulatory reforms to create UGANDA’S BOLD STEP TO U2020/21-2024/25 on July 1st 2020 with a conducive environment for investment, a goal of increasing household incomes attract and retain investors as well as boost and improving quality of life of Ugandans. the country’s competitiveness in matters The NDP III provides the overall strategic regional and continental. document guiding the country towards achievement of Vision 2040. The total paved road network as a percentage of total national roads has The Government is making strategic increased from 15.9% in 2010/11 (3264.10) to investments that can spur private sector 23.8% in FY 2018/19 (4971km). growth to create jobs, increase exports as well as increase household incomes. Similarly, the Country’s electricity generation capacity has increased from 601Mega Watts BOOST The government is therefore heavily investing (MW) in 2010 to 1252.4 MW over the same ITS BUSINESS COMPETITIVENESS in the road networks, air transport, energy, period under review. An additional 600MW cold storage facilities, IT infrastructure, is expected be added to the national grid this year when Karuma hydro-electric power plant becomes fully operational.
The Government is further implementing a Cabinet Directive on reviewing laws and regulations that impede the ease of doing business, a step towards creating a conducive business environment by removing legal and administrative burdens to doing business.
The process which started in 2010 culminated into a Report of 766 licenses that imposed a compliance burden of Ug shs.725.7 billion to businesses. The Report recommended retaining of 418 licenses and amendment of 348 licenses. Of the 348 where action was required to repeal, streamline, amalgamate or reclassify, 58% of the amendments have been finalised and 34% of this process is on-going within the respective Ministries, Departments and Agencies. This process is monitored under a high level Business Licensing Regulatory Reform Committee with the ultimate objective of improving the business environment and attracting investments.
The Government is also setting up a USD 18 million One Stop Centre dubbed the Uganda Business Facilitation Centre (UBFC) in Kololo, Kampala funded through the Competitiveness and Enterprise Development Project (CEDP) of the World Bank and USD 30 million modern fresh handling and storage facility at the Entebbe International Airport.
The Uganda Business Facilitation Centre, expected to be completed in April 2021, is meant to facilitate both online and physical one stop centre services (delivering over 15 public services) to reduce the cost of
doing business and improve the business environment. >>> Dr. Peter Ngategize,head of PSDU at MoFPED
36 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 37 The Uganda Business Facilitation BUSINESS Centre In Kololo, Kampala
The UBFC will house the Uganda Registration ruption Duration Index (SAIDI) and System Services Bureau (URSB), Capital Markets Au- Average Interruption Frequency Index - thority (CMA) and Uganda Investment Au- (SAIFI)). thority (UIA) to work in an integrated manner in providing the business community and in- The Country has further operationalized vestors with the necessary documents they 22 Zonal Land offices and installed an up- need to facilitate business and investments graded National Land Information System process in the same building. with the corporate and public portals to re- duce the number of procedures and time According to Dr. Peter Ngategize, the Head, involved in registering property, mortgages Private Sector Development Unit (PSDU) at and other related land transactions. This
the Ministry of Finance, Planning and Eco- process has also increased the stock of ti- nomic Development the new investments tled land including communal land in >>>the are meant to fasten processes and proce- Country. dures for registering businesses at one-go as opposed to the current system in which investors move from one place to another Uganda has also to get all the documents they need before their enterprises registered. improved monitoring of Ngategize said, government also executed a Cooperation Agreement with the Master- the reliability of electricity Card Foundation in July 2020 to provide a framework for the Foundation’s Young Af- rica Works (YAW) Strategy for Uganda with supply; in relation to an initial funding of USD 200Million aimed at creating 3 million jobs over the next 10 years. the frequency and The Foundation is currently working with over seven organised private sector players in- the duration of power cluding Private Sector Foundation Uganda (PSFU), Gudie Leisure Farm (GLF), Innovation outages in line with Village, and Commercial Banks among oth- ers to facilitate job creation in the agropre- neurial space, work readiness programmes, international standards innovation and incubation space through development of skills for the youth, women and best practice and children.
Ngategize said the government is also work- ing in the innovation and incubation space and has established the Makerere Innova- tion and Incubation Centre (MIIC) to de- The foundation is velop a replicable incubation model for all universities countrywide to nurture business working with private ideas into competitive business enterprises. Uganda registered an improvement in the World Bank Ease of Doing Business 2020 sector players to rankings. facilitate job creation The country’s business ranking improved by 11 positions from 127th to 116th out of 190 economies on the backdrop of reforms in the agropreneurial geared at making it easy for investors to start a business, get electricity connections, register property and obtain construction space, work readiness permits. programmes, innovation Uganda has also improved monitoring of the reliability of electricity supply; in relation to the frequency and the duration of power and incubation space outages in line with international standards and best practice. (System Average Inter-
38 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 39 BUSINESS BUSINESS
Uganda’s map showing operational Zonal vide for refugees. Uganda hosts over 1.2 on the continent as the AfCFTA comes into million refugees. The Private Sector has po- force. tential for expanding job opportunities for Land offices with the installed upgraded refugees, improving service delivery (e.g Magnay further noted that increased gov- mobile money transactions and food), offer ernment interventions including increased National Land Information System markets for products by refugee communi- investments in research and development ties. across all sectors, macroeconomic stabil- ity evidenced by inflation and exchange Ugandan-originating goods and there is The Private Sector also provides a viable rate stability, political stability, increased structured and institutionalised harassment framework for enabling refugees integrate attraction of foreign direct investments and of Kenyan traders and dealers in Ugan- and contribute to development within the expanded external trade networks are the dan-originating goods especially poultry, context of the global refugee response reasons behind the positive trend of exports. milk and sugar. framework. Last year, Uganda exported and imported Uganda’s Private Sector is comprised of During the 11th National Competitiveness goods worth USD1.6billion and USD1.4 billion, about 1.1million enterprises, employing over Forum in Kampala recently, John Magnay, respectively, to and from the rest of Africa, 2.5 million people and contributing nearly the Managing Director at the Nakifuma according to the Ministry of Trade, Industry 80% to the Gross Domestic Product, accord- Farm Company Ltd, said that there’s need and Cooperatives. ing to the GDP share of the national budget for the business community to ensure that in FY 2015/16 by the National Strategy for Pri- the products they put on the local and for- Uganda is therefore set for an improved vate Sector Development (NSPSD 2017/18- eign markets are of quality. growth trend with the increased infrastruc- 2021/22). tural development, improved business envi- Magnay said there’s need for the local trad- ronment, political stability and macro-eco- The NSPSD is a Government initiative that ers to ensure that their products are of high nomic stability. sets out a comprehensive scheme for co- quality to compete with their counterparts ordinating the growth and development of the Private Sector in Uganda. The Strategy captures aspects at three different levels of Macro- Business Environment, Meso-Business to Business linkages and Micro-enterprise growth and development.
Against this background, the Ministry of Fi- nance hosted the 11th National Compet- itiveness Forum on November 26th 2020, under the theme; Strengthening Evidence Based Private Sector Development Inter- Uganda is also rapidly upping its readiness to ventions. This annual forum facilitates public tap into the African Continental Free Trade – private engagements that inform the bud- Area (AfCFTA) that started on January 1, get process. It also provided a validation 2021, with the development of various infra- platform for three 2020 knowledge products. structure services to boost its business com- These products were produced by the Min- petitiveness. Once the AfTCA commences, istry of Finance in partnership with academ- 90% of products in Africa will enter partner ic and research institutions. The Makerere states markets duty free and quota free. School of Economics produced the State of Uganda’s Business Environment; the Eco- Uganda reported the first ever trade surplus nomic Policy Research Centre produced with Kenya in 2017, however, since then, the the Value Chains Status Report and Maker- Uganda Manufacturers Association (UMA) ere University Business School produced the says that; Kenya has intensified non-tariff State of the Nations Enterprise Report. barriers. These reports provide an assessment and UMA has threatened to sue Kenya over evaluation of private sector development, trade barriers to the East African Court of impact of Government interventions and Justice to get redress on unfair trade prac- propose recommendations that feed into tices. UMA says that Kenya is questioning policy development and budgetary pro- the origin of Ugandan products even when cess. they have a valid certificate of origin. - Fur ther, that the products are counterfeit even The Reports presented at the National Com- when they bear the “Q” mark issued by petitiveness Forum stipulated that the East UNBS and that they are smuggled into their African nation like the rest of the countries in Country without payment of taxes. the region now boasts of much greater po- litical stability, attracting huge investments in UMA states that Kenya has instituted permits infrastructure in the region. that water down the EAC Common Mar- ket through unilateral restrictions against The NSPSD is further being reviewed to pro-
40 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 41 ECONOMIC GROWTH Did you know?
The slowdown in the global economy, alongside the containment measures Government undertook to check the spread of the virus, is expected to affect the pace of domestic economic activities. GDP is projected to grow by 3.1 percent this financial year, which is lower than the pre-pandemic projection of 6.2 percent.
Expenditure has increased as additional funding has been required EDPR: to deal with Covid-19 related economic and health challenges. This has translated into a widening fiscal deficit, projected to be ENHANCING PUBLIC DIALOGUE ON 10.7 percent this financial year up from 7.2 percent in FY2019/20. As a result, public debt stock is projected to increase to 49.9 percent ECONOMIC DEVELOPMENT framework - the Microeconomic Indicator of GDP in FY2020/21, from 41.2 percent in FY2019/20. Dashboard (MIND). Cumulatively since last financial year, the Ministry of Finance has ffective and efficient public communi- terests. The Portal can be accessed through The MIND Framework is intended to aid poli- allocated a total of Shs 1.073 trillion to the various Ministries, De- cation is an imperative for enhancing MoFPED’s primary website: http//:www.fi- cy formulation through effective monitoring partments and Agencies (MDAs) involved in the whole electoral Edialogue. Further, access to reliable and nance.go.ug or directly from the following of eight key development and investment roadmap. timely information on national development URL: https://www.development.go.ug policy issues for effective microeconomic in user-friendly formats is essential for the ad- management. These include Employment; In the first quarter of FY2020/21, loans worth Shs 2,650.3 billion were vancement of a culture of evidence-based Micro Economic Indicator Dashboard Living Standards; Economic Inclusion and approved for disbursement to the private sector by lending institu- policy dialogue and decision-making. To widen the scope of evidence available Equity; Environmental Sustainability; Produc- tions. This led to a cumulative stock of Shs. 17,221 billion in Septem- In line with its four-fold mandate that in- to policy-makers and reduce lag times in tivity; Competitiveness; Markets and Regula- ber, 2020 which translated into a growth of 1.4 percent in the stock cludes formulation of policies that enhance decision-making, the department spear- tions; and Local Content. The MIND Update of outstanding private sector credit over the quarter. economic stability and development, and headed an initiative to mainstream a hybrid will be released monthly over the NDP III pe- oversight of national planning and strate- of high frequency and periodic microeco- riod. Government has decided to embrace the Programme approach By Sheila Nuwamanya gic development initiatives for economic nomic indicators within MoFPED’s econom- because the Sector philosophy has not achieved the collaboration growth; the Ministry of Finance, Planning ic management structures. This initiative is The writer is a Senior Economist at among government entities as it should have. It has instead fos- and Economic Development (MoFPED) has being implemented based on a newly de- Economic Development Policy and tered a silo environment in which sectors operate to their own ben- progressively advanced its capacity to in- veloped internal knowledge management Research Department efit and not work toward the country’s common goals. Programme form, communicate, and monitor outcomes approach on the other hand fosters collaboration, breakdown of of Uganda’s development policies and pro- silos and requires inter and intra-ministerial discussion and coordi- grams. nation.
In FY 2019/20, the Directorate of Economic Programme Based Budgeting (PBB) focuses on results/outcomes in Affairs through the department of Econom- order to attain value from service delivery. Programme Based Bud- ic Development Policy and Research, intro- geting (PBB) involves elevating the Programme layer to become duced two flagship knowledge manage- the focal point of decision making and allocation of budget re- ment products/platforms to this end namely; sources.
i.The Development Policy and Performance Portal ii.The Micro Economic Indicator Dashboard Series
Development Policy and Performance Portal The Development Policy and Performance (DPP) web portal is a reference gateway for efficiently serving MoFPED’s stakeholders and the public at large with official and up to-date content on Uganda’s development agenda and its performance.
As an information platform on Uganda’s na- tional development, the DPP portal features wide ranging content consisting of an eight- item primary menu: Development Frame- works; Development Drivers; Development Outcomes; Public Services for Development; Knowledge Centre; Quick Facts and Figures; and Feedback Interface. Each of these items has a range of subject matter sub- items that are logically organized for friendly navigation and to address issue-specific in-
42 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 43 Finance Minister Matia Kasaija at National budget month tree planting activity FY 2019/20 along Bombo road in Kampala
Corporate Social
The trees have grown healthy along Bombo road Kampala. Responsibility (CSR)
44 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 45 REVENUE REVENUE
goods consumed by the less privileged are has been a shift in the tax policy, which has Highlights on generally exempt. since boosted revenue collection. Broaden- ing the tax base therefore, does not simply Reforms in Tax Policy refer to introduction of new tax heads, but rather to bring more Ugandans into the Over the past three decades, Uganda’s tax tax-net, encouraging potential taxpayers to system has undergone a number of reforms, participate in the tax system and enhanc- Uganda’s tax including, among others: - ing compliance. - Replacing of Sales Tax with Value Towards Domestic Revenue Enhance- Added Tax (a broad based consumption ment tax) in 1996 - Substituting the Income Tax Decree Government has adopted the Domestic of 1974 with the Income Tax Act in 1997; Revenue Mobilization approach to provide system - Abolition of discretionary tax ex- a medium-term anchor, as well as, a much emptions; more coordinated approach to tax re- Context of Tax Policy about 60%; - Introduction of new legislation, forms. The Domestic Revenue Mobilization (ii) Boost investment and exports. A num- such as; EAC Common Management Act, Strategy (DRMS) is a prime framework for Uganda’s tax system is guided by under- ber of tax incentives are embedded in the 2004, EAC Common External Tariff, Stamp the tax system, and is expected to facilitate lying principles of taxation that ensure respective tax laws to promote investment Duty Act, Excise Duty Act 2014, Tax Proce- the expansion of the tax base, by gradually fairness, equity, collectability, simplicity, and and exports; and dures Code Act, 2014 and Lotteries and increasing the tax-GDP ratio from approxi- convenience. Thus, the tax regime is de- (iii) Promote Social welfare. This is apparent Gaming Act, 2016. mately 13% currently to 16% within the next
signed to be as neutral as possible, encour- in the progressivity of tax rates. Additionally, five years. The Strategy is intended to: - aging both compliance and administration. As a result of the above tax reforms, there (a)Raise additional revenues to support>>> The comprehensiveness of the tax regime therefore, is geared at ensuring greater pro- ductivity of the tax system. By Susan Nakagoro Government policy is to achieve an in- crease of at least 0.5 percentage points of GDP in the tax to GDP ratio to raise suffi- cient revenues to finance the national bud- get and attain a tax to GDP ratio of about 16%, consistent with target under National Development Plan.
Tax Policy Objectives Uganda’s tax policy aims to: -
(i) Generate tax revenue to finance the national budget. This is evidenced from the share of tax revenue in the total resource envelope, which has gradually increased from about 40% in the 1990s to currently The measures were intended to generate additional revenue, as well as, provide tax relief to businesses given the impact of
Covid-19 DST Ocailap with officials from URA discuss tax policy issues at MoFPED
46 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 47 REVENUE REVENUE
factory or a warehouse. in the tax administration, the following URA measures have been implemented: - With regard to the Covid-19 tax relief mea- sures for businesses, Government; (i)Operationalization of Electronic Fiscal Devices (EFDs); 1)Exempted VAT on supplies of specified medical goods used in the prevention of (ii)Enforcement of Digital Tax Stamps (DTS); the spread and the treatment of Covid-19 pandemic, including; raw materials and (iii)Implementation of the rental income tax inputs for manufacture disposable medical collection solution by Ripple Nami; face masks; medical boots; medical imper- meable aprons/coverall suits; cap, surgical, (iv)Purchase and deployment of customs bouffant, non-woven; goggles, protective, scanners, arrears management and use indirect side ventilation; infra-red thermom- data management & analytics; and eters; motorized fumigation pumps; (v)Implementation of e-invoicing and re- 2)Removed excise duty in respect of un-de- ceipting regulations. natured spirits made from locally produced Moses Kaggwa raw materials to facilitate production of The new tax measures await consideration sanitizers and medical hand rubs. by Parliament and will take effect upon Acting Director being assented to by H.E. the President and Economic Affairs, 3)Deferred payment of income tax for consequently gazetted. companies and other persons involved in the business of manufacturing, tourism and The writer is a Principal Economist in the Tax floricultural sectors. Policy Department To enhance efficiency and effectiveness
Government’s budgetary position; (v)Revenue strategies help guide external Over and above (b)Promote a healthy flow of investment; support to where it is most needed and revenue collection, (c)Address issues of fairness and transpar- Considering the above, having in place a ency in the tax system. sound DRMS will increase the likelihood of debt financing is a achieving Government’s revenue goals. vital source for funding Why we needed a DRM Strategy Such a Strategy will support Government to prioritize objectives, give direction to our national budget. (i)To provide a clearer picture of likely tax persistent tax capacity building efforts, and revenue and give certainty to taxpayers on provide certainty to taxpayers on the tax This financing is the tax implications of their decisions and implications of their decisions. investment; specifically channeled (ii)To prioritize medium-term objectives and Tax Measures for Financial Year to development of key give direction to persistent tax capacity 2020/21 building efforts; infrastructure projects (iii)To provide the necessary legal frame- Government introduced new tax measures work to support policy and administration in Financial Year 2020/21. The measures and provision of social changes; were intended to generate additional reve- (iv)To provide security in instance of instabil- nue, as well as, provide tax relief to busi- services. ities and uncertainties; and nesses given the impact of Covid-19. The new measures proposed include, among others: - The Directorate of VAT was also 1)A minimum tax rate shall apply to tax- payers whose declared tax liability for a Debt and Cash Policy consecutive period of five years is less than exempted on locally 0.5% of the gross income; employs best practices 2)Government introduced a simplified tax and new strategies regime for small business; produced materials 3)Withholding tax was introduced on sale of to get the best deals land and on commissions paid to insurance as well as advertising agents; for financing national for the construction 4)Government exempted VAT on agricul- Maris Wanyera tural machinery and equipment, including development plans, of a factory or a trailer for agricultural purposes and com- including the sustainable Acting Director bine harvesters; Debt and Cash 5)VAT was also exempted on locally pro- development goals. Policy warehouse duced materials for the construction of a
48 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 49 INTERVIEW INTERVIEW Interview with Julius Mukunda CSBAG Executive Director
though this is impressive a lot still has to be done to the citizens the gaps, status and issues on participation among others. around service delivery and minimize doubt amongst citizens. How has Civil Society ensured proper Lastly, one of CSBAG strategic targets is to accountability and budget transparency by have structured collaboration with Government Government? in our pursuit for participatory decision making in public finance management. Through the A: From our perspective, we have engaged structured collaboration, a number of joint different stakeholders on promoting action with Government are taking place and budget transparency; Under the Budget this is not only at National Level, for example, in Transparency Initiative for example, a number all the 23 districts of our operation, all our CSO of CSOs are undertaking various initiatives, for partners were provided space to participate example CSBAG assessment of Government in the FY2021/22 Budget conferences, at the compliance to the PFMA, 2015 is one such lower Local Governments, our citizens structures initiative, ACODE’s Local Government Score collaborated with Sub-county leadership to card and other CSOs like the Uganda Debt have joint sub-county budget conferences in Network contribution to the Open Budget over 90 sub counties. Such initiatives go along Index are some of the initiative undertaken by in enhancing participation in decision making CSOs. as well as enhancing budget transparency Across the country, different CSOs are also and accountability. engaging their Local Governments on key issues on accountability and transparency e.g., through monitoring and enforcing the display Julius Mukunda of budget information at service delivery centers and Local Governments. We have CSBAG Executive always engaged the PPDA on the issue of Director ensuring that public procurement information is displayed to allow fair competition and over In the Open the years, we have seen the practice of display To which extent is budget transparency and the National Budget Month by Ministry of of procurement information. accountability important in the country’s Finance and URA, where various Government growth and development? entities share with the public how they utilize Which areas do you think need to be Budget Survey public funds, the budget website www.budget. improved as far as accountability is A: It’s the role of Government to provide go.ug , the toll-free line among others. All these concerned? services to its citizens. Through service and more are good initiatives, however more delivery, duty bearers have a duty of ensuring agencies besides the Ministry of Finance, need (2019), Uganda A: When you talk about transparency and value for money and ensuring that they to be innovative in the area accounting to the accountability, there’s a key element which are accountable to citizens. With proper public and increasing access to information. is access to information. Many duty bearers accountability, service delivery constraints Access to information is still a challenge in aren’t sharing service delivery information to scored 58% and are addressed hence fostering the country’s most agencies, more so at Local Government, the public and this has caused distrust in public growth and development. for example, in 2019, while tracking efficiency services. Government needs to compel duty in public procurement and management bearers on timely release of budget information How Transparent is Government of Uganda in health and education sector at Local if accountability is to be enhanced. was number 2 in relation to the Budget? Government, it took us more than 10 months to On accountability at Local Governments, access the procurement documents for one of I think leaders should embrace the idea of A: On that, I would say that some agencies the targeted Local Governments, yet these are community dialogues commonly known as have really tried in ensuring transparency supposed to be public documents. in Africa barazas. This enhances dialogue between and accountability. Government has set up In the Open Budget Survey (2019), Uganda citizens and the duty bearers. Most importantly, a number of initiatives to promote budget scored 58% and was number 2 in Africa, the duty bearers can use the Barazas to explain transparency and accountability for example
50 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 51 BUDGET BUDGET
MoFPED working with Partners to Monitoring Government Enhance Budget adherence to the PFMA, transparency and participatory 2015 n 8th June 2020, as part of the 2020 There was general improvements registered budgeting in Uganda National Budget Month Events, between FY 2015/16 and 2016/17 and key Oan assessment of Government highlights of this Index include: compliance to the Public Finance Management Act, 2015 was launched jointly An approved Chart of Fiscal Responsibility he Ministry of Finance, Planning and Economic by the Permanent Secretary/Secretary to is in place, which was not there in 2015- Development (MoFPED) annually organizes the Local Treasury, Development Partners and Civil 16, is evidence of Government’s strong Government Budget Consultative Workshops that bring Society organizations. T commitment to macro-economic together all Government technical and political staff to consult stability. as well as communicate the Government budget strategy for This PFM Performance Assessment Index Asset management improved and this the upcoming Financial Year (FY). Report for the financial year 2016/17, is a is due to progress in the establishment useful analysis, which assesses the extent to of asset inventories by Government This is part of the reforms aimed at promoting an open and which Government has complied with the entities as required under the Act. The participatory budget process as stipulated in Section 9(1) of the PFMA, 2015 legislation and an important IFMS module for asset management has Public Finance Management Act (PFMA, 2015) as amended contribution to the debate on accountability been operationalized and Government which requires Accounting Officers of the different Ministries systems. agencies begun to provide reports on ACODE ED, PS/ST- Department Agencies (MDAs) and Local Governments their asset inventories. Whilst the Board of MoFPED, CSBAG to consult the different stakeholders in preparing Budget The PFM Act of 2015 is a significant legislation Surveys have been established for each Representative Framework Papers (BFPs). aimed at strengthening Uganda’s financial vote, only a few of these were able to management and accountability systems. and Develop- report within the time required. To enhance participation, the Civil Society Budget Advocacy The collaboration with the Accountant ment Partners There was improvement in budget Group (CSBAG) collaborated with 90 CSOs operating in 14 General in this area is testimony to the representative at performance contracts. However, more sub-regions of Uganda namely; Ankole, Kigezi, Bukedi, Bunyoro, constructive relationship that has been details required on how the review of the launch of the Karamoja, Acholi, Lango, Bugisu, Teso, Tooro, Busoga, and established between Government and Civil Accounting Officer reappointments is PFMA index (Min- West Nile to develop a position paper: CSOs POSITION PAPER Society Organizations as partners in the functioning in practice, as this is a key istry of Finance ON MEASURES OF IMPROVING SERVICE DELIVERY; EXPERIENCE accountability reform Programme. mechanism for enforcing audit follow Conference hall), OF THE CIVIL SOCIETY that was presented to representatives up. There is need to strengthen the 8th June 2020 from National Planning Authority (NPA), Ministry of Water >>> and Environment (MoWE), Ministry of Gender, Labour and Social Development (MoGLSD), Ministry of Agriculture (MAAIF), Ministry of Health (MoH), Ministry of Public Service (MoPS), Ministry of Education and Sports (MoES), LG Finance Commission, PPDA and Technical and political leadership from LGs who included; District Planners, District Engineers, District Health Officers (DHOs), Chief Finance Officers (CFOs), Chief Administrative Officers (CAOs), Town and City Clerks, District Education Officers (DEOs), Personnel and Human Resource Officers, LCVs, Mayors and District Speakers from all Local Governments in Uganda.
Enhancing Citizens access to simplified budget information, CSBAG collaborated with the Ministry of Finance to produce the Citizens Guide to the Budget for the financial year 2020/21. This is part of the broader target of the Budget Transparency Initiative coordinated by Ministry of Finance, Planning and Economic Development to make budget information readily available and in easy to comprehend formats. It goes a long way in enhancing citizens understanding Government expenditure and tax commitments of a given financial year for easy monitoring and accountability. This can be accessed via the www.budget.go.ug website and the CSBAG website www.csbag.org
52 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 53 BUDGET
Civil Service Rewards and Sanctions and investment to promote economic framework, which is being led by the growth. Ministry of Public Service. This would While budgets are being approved enable Accounting Officers to take before the start of the financial year, action in enforcing regulations by their the budget planning process has a very staff. tight timeframe, resulting in inadequate There was improvement in reporting consultations with stakeholders on sector Government’s consolidated financial and MDA budgets. Ministry of Finance statement. This was largely attributed to needs to carefully consider how to the application of a standard reporting ensure that there is adequate time for format used by all entities and better review and consultation to take place in reporting from all state enterprises. In the budget planning process. FY 2015/16 only half of state enterprises were included in the consolidated financial statements. Reports are now presented to Parliament on Tax Expenditures. This is a positive Reports step linked the DRM Strategy. More progress is still required in strengthening policies for reviewing and approving tax are now exemptions. The Index highlights that Local Governments receive an inadequate presented to share of royalties and fees collected in sectors such as mining, hydropower, fisheries, tourism from national parks, Parliament MoFPED officials and and veterinary services. Given that Partners meeting at these activities have a direct impact Ministry of Finance on the Districts where they take place, on Tax it is important to ensure that Local Government’s receive their fair share Expenditures. of this revenue to provide adequate resources to LGs for delivery of services Enhancing Government of Uganda’s budget transparency
Joint meeting ranking between the BTI members including ACODE, n collaboration with Ministry of Finance, ODI, ACODE and other CSBAG, Ministry CSOs, efforts are underway to design strategies to improve of Finance, ODI IUganda’s Budget Transparency in FY2020/21. This resulted from discussing key reflections on Uganda’s performance in the Open Budget Survey interventions (2019) where the score slightly declined from 60% in 2017 to 58% in 2019. to improve Several meetings have been held by members and designed Uganda’s action matrices for key Government agencies including Ministry of performance Finance, Parliament of Uganda and the Auditor General that need Budget to be implemented to increase the country’s ranking in the next Transparency OBS expected to be launched in 2021 (18th September 2020)
54 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 55 REPORT
Highlights from Accountant General’s Annual Report 2019/2020
ection 46(7) of the Public Finance About UGX 30.269 trillion was received into Management Act, 2015 (as amended) the Uganda Consolidated Fund (UCF) in the Srequires the Accountant General financial year 2019/ 2020. to make a report to the Secretary to the Treasury on the discharge of his duties every The amount according to the Accountant financial year. General’s report 2019/2020, accrued from the tax revenues, non-tax revenues, transfers The Office of the Accountant General received from the Petroleum Fund and (AG) is mandated by the Public Financial those from Vote 130 (Treasury Operations). Management Act (PFMA) 2015 to According to the report, about UGX 16.182 manage expenditures from the Uganda trillion were transferred from the UCF to the Consolidated Fund, the Petroleum Fund Central Government votes. About UGX 3.588 and the Contingencies Fund. It ensures trillion was channeled to Local Government that warranting the release of funds and votes, UGX 199.1billion to Missions and payments are made according to the cash transfers to vote 130-Treasury Operations flow plan issued by the Secretary to the amounted to about UGX 8.843 trillion. The performance according the AG, Treasury. Lawrence Semakula was affected by the The Contingencies Fund was provided with outbreak of the Covid-19 pandemic in the The report highlights a number of key activities a total of UGX 62.07 billion out of which third and the fourth quarters of the financial that were undertaken during the financial UGX 61.234bn was released to various year. Recommendations year and they include: consolidating the entities to respond to natural disasters accounts of Central and Local Government and emergencies which included locust The commitment by the government To address some challenges votes, statements of financial performance invasion, floods and Covid-19 pandemic. to implement electronic government of public corporations, state enterprises that arose in the course of procurement (e-GP) was also reviewed and and companies where government has a The stock of government domestic debt at key tasks completed. the year the report indicated controlling interest on top of preparing the cost amounted to UGX 18.248 trillion out of statutory annual financial statements of the that there was a need for which T-Bills accounted for UGX 4.456 trillion, “In addition, the electronic local purchase Contingencies Fund, Petroleum Fund and while T-Bonds were UGX 13.792 trillion. order was implemented in all votes to the harmonization between Treasury Operations vote 130. reduce on the delays in the procurement the PFMA, 2015 and PFM According to the report, the AG office
processes and minimise unethical behavior,” legislations which affects continued with the roll-out of Integrated Semakula said. In addition, the electronic Financial Management System (IFMS) to the the proper management of government entities. Semakula also reported that three treasury public resources. local purchase order memoranda on the reports of the Auditor
A total of 302 government entities and General on missions, central and local was implemented in all 73 donor funded projects are now on governments were prepared and submitted The report advises against “ IFMS. The IFMS approval hierarchy for all to Parliament as required by the law. Central and Local Government entities was “ He said that the office was in the process continuous creation of votes to reduce on the enhanced to include heads of departments of developing an Asset Management votes saying this stretches as an additional control to stem mischarge Framework to address weaknesses and the limited resources in delays in the procurement expenditure. ambiguities in the management of government assets. place and slows down the Warrants totaling UGX 37.04 billion implementation of PFM processes and minimise according to the report were issued against “The Office is committed to supporting an approved budget of UGX 42.73billion PFM reforms and shall continue to provide systems. unethical behavior in the financial year representing an 87% training and change management for budget out turn. effective and efficient management of public resources,” he said.
56 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 57 BUSINESS BUSINESS
(CMS) which will streamline tax collection - Prevent gambling from being a source of as well as increase efficiency in overseeing crime gaming activity online in a bid to promote - Protect consumers by ensuring that our Responsible Gaming programmes. gambling is fair and safe Making Gaming - Protect children and those considered to Responsible Gaming be minors (by law, these are persons who are below 25 years) from being harmed Responsible gaming is one of the core by gaming activities mandates of Gaming Control Boards in best practices around the world and in Uganda; The Board in an effort to reduce the exposure it is embedded in the main objective and of gaming in the public eye and reduce the Fairer & Safer functions of the National Lotteries and nuisance value passed a directive/guideline Gaming Regulatory Board (LGRB) of Uganda in line with Sec.4 on signage size. The size under the Lotteries and Gaming Act, 2016. passed is 1/2mtr by 3/4mtre. This has been Amid the Covid-19 Pandemic communicated to KCCA recommending Responsible gaming comprises several the adoption of the passed size as far as policies and requirements that apply to gaming is concerned. he impact of the epidemic was sudden popularity and prevalence and that a well- gambling stakeholders to make sure they and comprehensive and like many other founded understanding of its operations respect the highest standards of quality, The failure of licensees to offer fair choices Tsectors, the gaming industry was not and socio-economic implications was and offers a safe user experience that to consumers and to promptly react to spared. We are learning to adapt, as quickly imperative. protects people from the potential adverse concerns or complaints about their terms as possible, to this constantly evolving consequences of gambling. and conditions has already led Lotteries and situation. It is against this background that the Lotteries Gaming Regulatory Board to take action. and Gaming Regulatory Board (LGRB) was As a regulatory body, the premise is simple. There have been significant challenges Worldwide, the gaming market continues established as a body corporate under the The Board’s expectations from all licensees facing gambling policy and regulation in to grow, a trend driven in particular by the Lotteries and Gaming Act of 2016 and was are to treat consumers fairly at every stage Uganda and admittedly, these cannot growth in online gaming and mobile use. mandated to licence, inspect enforce and of the consumer’s journey and this goes for be overcome by the Board alone. LGRB By Precious Birungi In effect, consumers are also embracing solve disputes arising from disagreements both land-based and online operators. needs continued strong partnerships with new gambling style products and new between operators and the consumers of other regulators, consumer representatives ways to pay for and monetize gambling are gaming products. Gambling is a leisure activity and as such, and partnerships with various government developing each passing day. under Act No. 7 of the Lotteries and Gaming entities. The Lotteries and Gaming Regulatory 2016, operators are permitted a foray into Gambling operates in a global market. Board has a statutory licensing objective the gaming market-space for as long as The writer is a Protocol and Public Relations As such, the gambling market is seeing a to protect consumers from the adverse these conditions are met: Officer at Lotteries and Gaming Regulatory growing influence from a significant digital effects of gaming and has committed to - Ensure compliance to the Law and Authority . and data revolution. Online gambling has work to prevent harm to consumers and Regulations grown at a rapid rate and our current work the public from gambling. The LGRB applies and government interest is focused on the a range of regulatory tools and levers to issues this raises for consumers and for us, as make gambling safer, and the aim of our regulators. compliance and enforcement work is to raise standards through targeted actions While the moderate use of online games that drive a culture where licensees treat may be beneficial during this pandemic, it their consumers fairly. may also highlight vulnerabilities that can be exploited by industries that see opportunities The Lotteries and Gaming Regulatory Board to promote their products. is continuously working on the vision for the kind of gambling market we want to see: We are preparing for the consumer risks and One which is fairer and safer for consumers regulatory challenges that further market and one which protects consumers from and technology changes present, while also the adverse effects of gaming: it is more being ready to harness the opportunities. In critical now than ever with more and more 2016 when the Board was first instituted, we people moving online as the COVID-19 realized over UGX 36 billion in taxes and in pandemic rages on. The risks are changing the financial year 2019/2020, UGX 50.6 billion and evolving and the industry needs to was collected- and that trajectory continues move further and faster to address them. to rise. And now more than ever, the importance of monitoring controls in the gaming industry Since the year 2000, gaming has been cannot be overstated. growing at an unprecedented rate and Uganda has not been left behind on that Accordingly, the Board has continuously rollercoaster. In fact, according to the developed specific regulations dealing Economic Policy Research Centre, EPRC with licensing requirements, general internal Report on the Socioeconomic Effects control guidelines, and certain minimum of Gambling: Evidence from Kampala required procedures to be followed by the City, Uganda, 2016, it was noted that the gaming operators. LGRB is in the process gambling industry continues to grow in of acquiring a Central Monitoring System
58 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 59 UGANDA MICROFINANCE REGULATORY AUTHORITY COMMENCES LICENSING PROCESS FOR SACCOS
FINANCE FINANCE
SACCOs collapsed. However, once Why should the public the SACCO Savings protection fund is Uganda Microfinance avoid unregulated established as per the tier 4 act, such losses will be stemmed. The SACCO Saving SACCOs? protection funds shall cushion these losses by compensating members in the event Protection of members’ savings. their savings are stolen. Regulatory Authority Dealing with unregulated SACCOs may lead to loss of members’ savings. If Cheating of Members. a SACCO has a license and it collapses, A SACCO that offer the business Commences licensing process for members of such a SACCO cannot lose all of financial services, and yet it is their savings. unregulated is an avenue for cheating members. Such SACCOs use members’ To minimize fraud and theft of Member funds to invest anyhow, and in the process SACCOs savings, the Tier IV Act established a incur losses (intentionally or otherwise) to SACCOs Savings Protection Fund. There the detriment of members. This is in sharp ganda Microfinance Regulatory Au- on the necessary procedures in the licensing have been cases were members’ savings contrast to regulated SACCOs. thority (UMRA) has commenced li- processes. have been stolen. This has left several censing process for Savings and Credit UCooperatives –SACCOs following the publi- WHY REGULATE SACCOs cation of the long awaited regulations in the Guidelines for Licensing SACCOs under Uganda Gazette. The Tier 4 Microfinance Institutions and The Authority was established by section 6 of Legal Protection. For a SACCO to carry on the Money Lenders Act 2016, and SACCO the Tier IV Microfinance Institutions and Mon- business of financial services, it must have a Regulations 2020 ey Lenders Act, 2016 to regulate, license license to do so. This means, for instance if and supervise tier 4 microfinance institutions a SACCO extends credit without a license, These Guidelines shall be cited as the By Edward Bindhe and money lenders. and along the way, there are defaults, Uganda Microfinance Regulatory Authority we are afraid, enforcing payment legally (UMRA) Guidelines for the licensing SACCOs The establishment of UMRA was driven by may not be possible. Having a SACCO under the Tier 4 Microfinance Institutions and the government’s desire to protect savings license means that the business is legally Money Lenders Act 2016 and the SACCO of SACCO members, limiting bad lending recognized. Regulation 2020 practices, and restoring confidence in the Therefore, SACCO Managers and Microfinance industry, and thus promoting Board Members should ensure that their financial inclusion through effective regula- Purpose respective Societies offering the business of tion and supervision. These guidelines are to guide applicants in financial services are licensed to do so, as processing the requisite requirements to ap- their role, among others, is to ensure that Since 2018, UMRA has been licensing and ply for SACCO license to offer the business of they operate within the law. regulating Money Lenders and Non Deposit financial services. Specifically, the purpose Taking microfinance institutions. Close to 900 of the Guidelines is to; a) Clearly show the Money lending institutions were licensed in Credibility. process that applicants shall follow when calendar year 2020. Customers (both internal and applying for a SACCO License external/potential and current) are often b)Explicitly lay out the detailed licensing re- The Authority had not kicked off licensing wary of businesses of financial services. quirements that must be submitted in sup- process for SACCOs as per section 36 of the Prior to entering any business transaction, port SACCO license application; tier 4 Act because regulations had been customers want to ensure that the business c)Serve as a point of reference for potential published in the Uganda Gazette. is legitimate. If a SACCO has license on applicants and other stakeholders; display or on her website, it helps reassure d)Streamline the licensing process by offer- However, in March 2020, SACCO regula- customers that they are dealing with a ing a reference point for UMRA staff during tions were published in the Uganda Gazette legitimate institution. the licensing process; and to implement section 36 of the Tier 4 Mi- Other business customers such as suppliers, e)Guide SACCO in meeting their compli- than 10% of total assets crofinance Institutions and Money Lenders creditors may need to see the SACCO ance obligations. Mrs. Edith Tusuubira c)Have institutional capital of not more Act,2016. According to section 36 of the license prior to doing business. For instance, addressing SACCO than UGX 500m and voluntary savings of Act, a SACCO shall not conduct business if a SACCO intends to get a loan from Application for a SACCO License stakeholders in not more than UGX 1.5bn of financial services unless it is licensed un- another financial institution for on lending, An application for a SACCO license shall be Mbarara on the d)Have a fixed and identifiable place of licensing process. der this Act. The SACCO Regulations which a SACCO license to do the lending business made in duplicate in accordance with Form business that is accessible and is suitable for operationalize the Tier 4 Act are now in the may be a requirement. 1A specified in Schedule 1 of the SACCO the business of financial services; Uganda Gazette. The Authority has finalised Regulations, 2020 and submitted to Uganda e)Have a management and governance licensing procedures for SACCOs. Accessing funds in form of grants/ Microfinance Regulatory Authority. structure. Have had at least an AGMs in donations. the past two years and at least two board UMRA therefore calls on all Cooperative So- SACCO Licensing Criteria To qualify for such funds, a SACCO meeting in the previous year cieties offering the business of financial ser- The applicant for a SACCO license must fulfil may be required to show evidence that vices to apply for licenses for the calendar whatever it is doing is legally acceptable. the following criteria: Documents Supporting the Application year 2021. A SACCO license is the only proof that a)Be a Cooperative Society registered un- The application shall be supported by the The Authority has already made several a SACCO is conducting the business of der the Cooperative Society Act following documents: stakeholder engagements to sensitize them financial services. b)Have a minimum core capital of not less a)Certified copy of certificate of registration >>>
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issued under the Cooperative Societies Act financial services. b)Audited books of accounts, Evidence that the SACCO meets the minimum equity Letter of Intent to Issue a license requirement, Institutional capital and Volun- Upon completion of an independent prem- tary savings ise inspection, if UMRA is satisfied that the o Economic and financial environment of SACCO meets all the requirements to offer the SACCO the business of financial services, a letter of c)A copy of SACCO Bylaws, Objectives of intent to issue a license shall be issued ad- the SACCO, Prospective place of business vising for payment of license fees of Three d)Credit policy and procedure manual hundred thousand Uganda shilling. e)Copy of Business plan/ strategic plan f)Organizational and management struc- 8.Issuance of SACCO License ture Upon presentation of evidence of Payment, g)A list of Membership and their sharehold- A SACCO License shall be issued. ing h)Copy of identification cards of the direc- 9.Validity of SACCO License tors and Senior management A license shall, unless revoked, be valid up i)Receipt as evidence of payment of appli- 1 to 31st December of the year in which it is cation for a license issued j)A filled ‘fit and proper’ questionnaire for Directors and Senior Management The writer is a Communications Manager, Uganda Microfinance Regulatory Authority Evaluation of the application (a)After receipt of the application, UMRA For more information Contact us: shall evaluate the application and vet the Rwenzori Towers, Block B, Ground Floor directors and senior management. Plot 6 Nakasero Road, Email: info@umra. (b)Upon approval of directors and Senior go.ug. Tel. +256 417 799 700 management, UMRA shall conduct an in- Website: www.umra.go.ug dependent premise inspection to ascertain Twitter: UgMicroFinAuth SACCO readiness to offer the business of 2 A participant speaking during SACCOs stakehold- ers meeting as UMRA ED Mrs. Tusuubira and other officials listen.
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Finance Minister Matia Kasaija signing financing agreement with the Republic of Austria for the establishment of a regional oncology centre in Northern Uganda (Gulu) on 6th November 2020 at MoFPED. Austria was represented by Dr.Roswitha Kremser, the head of Coordination Office for Austrian Participants at Eastern and Southern Africa Anti-Money Laundering Group Development Cooperation Uganda. The loan worth Euro 7.5 million is expected to improve the delivery (ESAAMLG) Council of Ministers virtual meeting on 7th December, 2020 at MoFPED of health services. Government intends to build and equip four regional cancer centers in Mbarara, Arua, Uganda took over presidency of the ESAAMLG Council of Ministers from the Mbale and Gulu. “I want to affirm that we shall fulfil our obligations under the Financing agreement,” said Kingdom of Eswatini. Accordingly, Hon. Neil Rijkenberg, Minister of Finance, Kasaija. Currently Uganda Cancer Institute attends to over 54,000 patients and the number is increasing . Kingdom of Eswatini handed over the Council Presidency to the Minister of Finance, Planning and Economic Development of the Republic of Uganda, Hon. Matia Kasaija. “As Uganda takes over the presidency of the Council of Ministers of ESSAMLG, our theme and efforts shall be focussed on actions for sustainability of the security and prosperity of our People” said Kasaija. As Council President, Hon. MFPED is expected to; i.Hold office for a term of one year (August/September 2021) and chair meetings of the Council of Ministers. ii.Represent the ESAAMLG at meetings of other inter-governmental groups dealing with anti-money laundering and other occasions determined by the Council of Ministers.
According to the ESAAMLG MOU, the Member country handing over the Presidency of the Council of Ministers in any year, shall host the Council of Ministers Meeting in the year that it hands over the office of President of the Council of Ministers. To this end, Uganda offered to host the next ESAAMLG Council of Minister’s and Taskforce of Senior Officials Meetings in August/September 2021.
Finance Minister Matia Kasaija (middle) officiating at the 16th Taxpayers Appreciation Awards Ceremony at Mestil Hotel on 11th December 2020. “I thank the small, medium and large taxpayers for a job well done and your enormous contribution to the growth of the revenue base Finance Minister Matia Kasaija makes statement on compensation of Tobacco farmers in Bunyoro over the years and we ask you to continue fulfilling all your tax obligations,” said the Minister. Sub-region at the Uganda Media Centre on 27th November, 2020 following H.E the President’s directive that affected Tobacco farmers should be paid. The farmers were contracted by Tobacco companies to grow Tobacco and supply it to them between 2017 and 2019.Out of the 7 licensed companies, 2 companies owe farmers UGX 11,251,217,641 and therefore the farmers petitioned the President .
64 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 65 NDP III PROGRAMMES AND CORRESPONDING LEAD AGENCIES No. Program Lead Agency 1 Agro-Industrialization PS/MAAIF 2 Mineral Development PS/MEMD 3 Sustainable Development of Petroleum Resources PS/MEMD 4 Toursim Development PS/MoTWA 5 Natural Resources, Environment, Climate Change, Land and water PS/MoWE Management Development 6 Private Sector Development PS/MoFPED 7 Manufacturing PS/MoTIC 8 Intergrated Transport Infrastructure and Services PS/MoWT 9 Sustainable Energy Development PS/MEMD 10 Digital Transformation PS/MoICT&NG 11 Sustainable Urbanization and Housing PS/MoLHUD 12 Human Capital Development PS/MoES 13 Innovation, Technology Development and Transfer PS/MoSTI 14 Community Mobilization and Mindset Change PS/MoGLSG 15 Governance and Security SECRETARY/OP 16 Public Sector Transformation PS/MoPS 17 Regional Development PS/MoLG 18 Development Plan Implementation PS/MoFPED 66 MOFPED TIMES|ISSUE 2 Ministry of Finance,Planning and Economic Development. 0414707259,0414707319,0414707115, 0414707109 plot 2-12 &2A,Apollo Kaggwa Road. www.finance.go.ug
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