Investment Review |1

Issue 4 Vol 1 Published by Investment Review Publications Ltd. P.O Box 9350 Tel: 0414 371580/ 0752 585 000 / 0788 577 499 / 0776 118 756. Plot No. 874, Block No. 215 Doing Business in Uganda The Major Constraints.

The doing business series the impact of regulation on tors, paying taxes, trading vestment, dubbed Team of the World Bank measures business at ten stages of a across borders, enforcing Uganda and also being the the regulatory cost of doing typical business cycle: start- contracts and resolving in- Secretariat of the Presiden- business in economies. It ing a business, dealing with solvency. tial Investors Round Table aims at investigating the construction permits, labour hosted a breakfast meeting regulations that enhance market regulations, register- The UIA being the leader of Team Uganda at Hotel business activity and those ing property, getting credit, of a group of government Africana on 2nd December that constrain it. It looks at protecting minority inves- institutions relevant to in- Continues on Page 2 ...

Investor of the year (INOY) awards 2014 The Investor of the year Awards (INOY) gala is an annual calendar event organized by the Uganda Investment Au- thority and one of the biggest annual events, in which UIA showcases investments that have commissioned within a given time period. It is one of the avenues through which UIA recognizes the efforts of the private sector in econom- ic development drive of the country. This year’s event was officiated by The Right Honourable Prime Minister Dr. Ruhakana Rugunda. The event is a vital platform for the UIA and the Govern- ment of Uganda to showcase existing Investment oppor- tunities in the country and carry out Foreign Direct Invest- ment-FDI retention programs .

This year had thirteen shortlisted companies. The over- all winner for Investor of the Year 2014 Gold Award was Pearl Diaries Ltd of the Midland Group.

The Silver Award winner was Roofings Rolling Mills (U) Ltd while the Bronze Award winner was Graphic Systems (U) Ltd.

The Best Woman Entrepreneur of 2014 was Ms. Barbara Ofwono Buyonda of Victorious Education Services. The Best Investment Promotion Embassy was the Uganda High Commission in Pretoria, S.A.

Other shortlisted competing investors included: Al-Sha- fa Modern Hospital Jinja, Sugar Kaliro Dis- trict,Greenstone Resources Busia District,Igongo Cul- tural Centre Mbarara District, Amos Diaries Mbarara District, Ltd, Wana Solutions in Wana Close Seguku, Ahmed Raza Foods Industries Bombo Road and Dial-A- Service (U) Ltd located at Statistics House Kampala.

It is one of the avenues through which UIA rec- ognizes the efforts of the private sector in economic development drive of the country. “See Pictorial inside...Pg 4 2|Uganda Investment Review Foundation Uganda among in . 30 days. others, descended on Ho- Doing Business in Uganda tel Africana on the morning Dealing with construction Another issue was the huge of 2nd December 2014, the permits; in this one, the cost an investor has to in- Continues from Page 1 UIA singled out three areas World Bank doing business cur to put up the infrastruc- in which Uganda was failing report 2015 ranked Uganda ture (transformers, meters, the most. 163rd out of 189 economies. cabling wires and poles). It Getting construction permits was also observed that in- Getting electricity; was by requires fifteen (15) proce- vestors are now out sourc- far the worst, with Uganda dures, takes 154 days and ing private electrical con- being ranked 184th out of costs 11.7% of warehouse tractors who can purchase 189 countries. The World value in Uganda. In com- the equipment and do the Bank doing business report parison, it takes 245 days to installation. These contrac- 2015 found that it takes 132 do the same in Mauritius, 77 tors are cheaper and take days, 6 procedures and a days in , 125 days less time to do the installa- cost of 11004.9% of per in Kenya and Ethiopia and tion compared to UMEME. capita income to get elec- 48 days in South Africa. Interestingly though, the tricity for a basic warehouse transformers and other ma- in Uganda. Comparatively, it Why is this so? terials remain the property takes thirty four (34) days to of UMEME. Would it not be achieve the same in Rwan- In March 2014, UIA did its fair and more attractive for da, seventy nine (79) days own verification survey, on the cost to be shared be- in Ghana. getting electricity, which is tween the investor and the the most problematic, and government? Starting a business; the found that the estimated The survey also observed World Bank doing business cost of obtaining an elec- the big problem of high elec- report 2015 ranked Ugan- tricity connection stood be- tricity tariffs which is howev- da 166th out of 189 econ- tween 74 million-161 million er still dwarfed by the bigger The ED Uganda Investment Authority Dr. Eng Sebbowa making a point at the TEAM Uganda omies. In this, Uganda has Uganda shillings and the problems of cost of installa- breakfast meeting at Hotel Africana on 2nd December 2014. continued to decline since number of days ranged be- tion materials and UMEME 2011. Starting a business in tween 34 and 180 days. delays. The high electricity Uganda will take an inves- tariffs continue to hamper 2014 to chew through the but believe it or not, it was tricity Regulatory Authority, tor fifteen(15) procedures, The survey observed that business investment. most recent Doing Business an improvement on the pre- UMEME, Uganda National thirty two (32) days and cost major delays occurred at Mr. Benon Mutambi CEO Report 2015 of the World vious year’s ranking which Chamber of Commerce and 64.4% of income per cap- Lugogo where there is a pe- Electricity Regulatory Au- Bank. placed Uganda 152nd out Industry, Ministry of Trade, ita(510 USD)according to rennial lack of poles, trans- thority informed the Team of 189 economies. Kampala Capital City Au- the World Bank doing busi- formers and meter units. It Uganda meeting that ERA This particular report ranks thority, Uganda Registration ness report 2015. Compar- is these kinds of bottlenecks is working on a price harmo- Uganda 150th out of 189 So as Team Uganda, com- Services Bureau, Nation- atively, starting a business that ensure that for instance, nization and is willing to take economies worldwide in prising of Ministry of Fi- al Social Security Fund, in Rwanda and Mauritius getting a wiring inspection in any more innovative ways ease of doing business nance, Uganda Revenue Uganda Manufacturers will take you 6 days, South will take 30 days and getting that can lead to low cost of overall. This is damning, Authority, Uganda Elec- Association, Private Sector Africa 19 days and 30 days a meter installation another Continues on Page 3 ...

Truly Natural Sweetness Uganda Investment Review |3 Continues from Page 2 electricity, improve and re- bottlenecks in construction where the monopoly of the duce on time spent getting permits are in KCCA and electricity utility on the sale Q&A with Mr. Paul Echatu, Inspector an electricity connection. NEMA. It will take an inves- of materials for new connec- Mr. Robert. F. B Mubiru Proj- tor thirty (30) days to obtain tions has been eliminated of Works (Industrial Parks) Uganda ect Manager UMEME also land ownership clearance and the processing fees for informed the meeting that from KCCA, 21 days to ob- new connections has been UMEME is applying and tain assessment of plans dropped. Investment Authority UIA adopting new technologies and 60 days to obtain ap- for infrastructure devel- facturing plant. that will ease customer ap- proval of plans and receive Mr. Lawrence Byensi , the opment. Notable among plications and inspections. a building permit and hoard- Director Investment Facil- these, is the World Bank vi. Industrial He also mentioned that U ing permit. Ezra Ssebwu- itation and Aftercare Divi- which provided 16 million and Business Park is in MEME is working on reduc- fu Manager Business De- sion at UIA proposed that US dollars for Master Soroti and is 219 acres ing the cost of a transformer. partment KCCA, informed in dealing with construction Planning and the ESIA; in size. The Master Plan, the Team Uganda meeting permits, government should Design of roads in South ESIA study and border Turning to starting a busi- that through partnerships, consider merging some of A and parts of South B; markers are in place and ness; it still is a puzzle why KCCA is already working the procedures in NEMA, Execution of Earthworks land has already been for instance, it takes five (5) with URSB and URA to KCCA and NWSC. He fur- of South A roads; and allocated to 9 compa- days for an investor to reg- improve the processes fol- ther suggested that amend- Construction of the UIA nies including Teso Fruits ister for taxes and obtain a lowed when doing business ment to the NEMA law be offices in the KIBP. Factory which is setting tax identification number in Uganda, KCCA’s partner- expedited and that staffing The EXIM Banks of India up a fruit processing fac- TIN at Uganda Revenue ship with UIA, PSFU and levels at NEMA and KCCA and China are individual- tory. Authority, and then another UNCC in creation of public should be increased. ly considering the provi- ten(10) days for KCCA to awareness is also in prog- sion of more funding to fill There are other park just issue a trading license ress. Dr. Peter Ngategize Na- in the gaps. sites that have been and four(4) days to register tional (CICS) Secretariat identified all over the with NSSF. On the brighter It will take 21 days to pre- MFPED, in a wrap, informed Q What about the other country and they are in parks? What works are various preliminary stag- side, it takes one (1) day to pare an environment impact the meeting that the best Describe the works Q going on there? es of planning and devel- file registration documents assessment as required performing countries had (roads et al) going on in opment. UIA is grateful at the office of the Registrar by NEMA and another 21 embraced an international the industrial UIA has a portfolio of to the districts that have and obtain the Certificate of days to request and obtain best practice that included; business park. A Incorporation. Would it not approval from NEMA .It putting procedures online, 10 industrial parks so approached the organi- far and 4 pieces of agri- zation with land offers re- be attractive to an investor, would be more attractive to this was found in 109 coun- The Kampala Indus- cultural land across the questing UIA to develop for government to estab- an investor if KCCA, NEMA tries; having no minimum A trial and Business country. These are active the offered land into in- lish online processes that and NWSC could consider capital requirement was Park (KIBP) located at at different stages of de- dustrial and / or business communicate between the merging some procedures found in 99 countries; hav- Namanve in Mukono/ velopment and use. parks three institutions URSB, and introduce online appli- ing a one-stop shop was Wakiso Districts is go- The industrial park sites KCCA and NSSF so every- cation processes found in 96 countries. ing to be a state of the include: UIA is the owner of sever- art Industrial Park when Industrial Park al square miles of land in completed. The Industrial in Kampala, sits on 70 Kaweeri – Mubende, Ma- Park sits on 2006 acres acres of land which is sindi, Goli – Mukono and of land zoned into South fully serviced with infra- Kashari, most of which it A, South B, South C and structure and fully allo- has leased to commer- North Estates, according cated to 12 companies cial farmers. to the nature of business which are at various e.g. processing of foods stages of development. and beverages, manu- Prominent among these Please throw some facturing, ICT services, Q are Quality Chemicals In- light on the cost of the etc. dustry, Blue Wave Water, various projects and Master Woods, etc. how much resources Government of Uganda have been mobilized found it prudent to pro- Industrial for each. How much is vide serviced land to pri- Park in Kampala is a 50 pending and what are vate investors in order to acre business park with the projected comple- facilitate the smooth set- the all the necessary in- tion dates? ting up of industries. Ser- frastructure in place and viced land has the nec- is allocated to 8 compa- UIA is developing the essary infrastructure like A nies which are in various parks in phases depend- roads for access, power, A cross section of participants at the TEAM Uganda breakfast meeting at Hotel Africana on 2nd stages of development. ing on funds released water, interconnectivity, December 2014. Among them are Uganda from the government etc. Uganda Investment National Bureau of Stan- treasury quarterly. Cur- thing could be concluded What actions are avail- Authority (UIA) is guid- dards (UNBS) Bweyo- rently, Luzira and Bweyo- in less than a day? Mercy able? ed by a Master Plan and gerere Hospital, etc. gerere are completely Kainobwisho, Director Busi- Environmental and So- serviced, while the rest ness Registration URSB, At the same Team Uganda cial Impact Assessment Mbarara SME Park is need to have the roads, informed the meeting of the meeting aforementioned, The UIA being the (ESIA) for the Industrial 13 acres in size with 5 bulk water, industrial new measures that URSB the UIA proposed several leader of a group of Park during infrastructure blocks of buildings hous- power, sewage systems has embraced and these ideas that could improve government insti- development. ing 34 work spaces. and solid waste manage- included the introduction of the ranking of Uganda in tutions relevant to ment systems, as well as investment, dubbed Who are the major play- online searches, eliminating the ease of doing business Kasese Industrial and connectivity put in place. Team Uganda ers in the efforts to make the requirement of assess- reports. For instance, the Business Park is on 215 ments in order to reserve Executive Director, Dr. Eng. “and also being the the industrial business acres. The Master Plan, The required develop- Secretariat of the parks operational and a company name and a Frank Sebbowa proposed ESIA study and Border ment budget for infra- how much in terms of bank branch that has been that UMEME should intro- Presidential Investors markers are in place. structure for the parks in resources has been com- opened at URSB in order to duce online application pro- Round Table hosted the short term amounts mitted? speed up the name reserva- cesses and subsidize the a breakfast meeting Jinja Industrial and Busi- to US$150 million for the The major player in the tion process. supply of electricity mate- of Team Uganda at ness Park is 182 acres. Kampala Industrial Busi- development of industrial rials. He further suggested Hotel Africana on The Master Planning, ness Park in Namanve, and business parks in the When it comes to obtaining that the cost of transformers 2nd December 2014 ESIA study and border Mukono; US$10 million country is the Govern- a construction permit; it is and other electricity ma- to chew through the markers are in place and for Moroto; US$5 million ment of Uganda. not attractive to an investor terials be shared between most recent Doing land has already been for Soroti; US$5 million Uganda’s development that dealing with construc- the investors and the gov- Business Report 2015 allocated to 3 companies for Kasese; US$0.5 mil- partners have supple- tion permits will cost up to ernment. He compared the of the World Bank. including Kiira Motors lion for Mbarara; US$5 mented Government’s ef- 11.7% of warehouse val- Uganda situation to Burundi Corporation who plan to million for Jinja and forts in providing funding ue in Uganda. The major set up a vehicle manu- US$40 million for Mbale. 4|Uganda Investment Review |PICTORIAL Investor of the year (INOY) awards 2014

Rt.Hon Prime Minister Dr Ruhakana Rugunda(C) was the Guest of Honour Some of the partipants at the INOY 2014 awards. Mrs Barbara at INOY 2014 at 12th December 2014. He is flanked Ofwono(L) of Victorious Eduction Services won Best Woman A cross section of investors at the by Hon Ajedra Min. of State for Investment and Dr.Eng. Sebbowa Frank, the Enterprenuer award. Mr S.Lalani(R) of Roofings Rolling Mills luncheon. ED Uganda Investment Authority. which was invester of the year silver award winner.

Rt.Hon Prime Minister Dr Ruhakana Rugunda(L) with Dr.Eng. Sebbowa Frank ED UIA having a one on one.

The MC of the day Sheila K Mugyenzi Director of Public Relations UIA with Investors enjoying themselves at the INOY 2014 luncheon Ms Hope Waira UIA. at Imperial Royale Hotel.

Mr. Alam(L) of the alongside other investors seen following proceedings Investors in a quiet discussion at the at INOY 2014. INOY 2014.

Mr. S Lalani of Roofings Rolling Mills Pearl Dairy Farms Limited was recognized receives the invester of the year silver as the overall Investor of the Year and award at the INOY 2014. awarded the GOLD AWARD for 2014.

A cross section of participants receive their award from Hon Ajedra Min. of State for Investment. Uganda Investment Review |5 VICTORIOUS EDUCATION SERVICES DAY CARE KINDERGARTEN PRE & PRIMARY BOARDING SCHOOL

Branches; Victorious Primary School - Divine Campus - Rubaga. Victorious Kindergarten - Miracle Campus- Rubaga. Victorious Kindergarten & Daycare - Central Genesis Campus. Victorious Primary School - Mukono with Boarding Mrs Barbara Ofwono Buyondo,Director Victorious Education Services Section. was UIA Best Woman Entrepreneur Award winner 2014. Victorious Kindergarten and Day Care - Ntinda.

Recruitment of teaching and non - teaching staff is going on. Applications are being received until 13th January 2015. Interviews will commence on 16th January 2015.

Day care has been introduced in General Interviews for new Genesis campus pupils will be on 12th January 2015 at Divine Campus Rubaga for all Campuses.

New branch; Pre Primary-Day care - P1 in Ntinda Farming in Mukono Campus

Boarding Section in Mukono Campus also has farming and swimming pool

Modern ICT Laboratory

We have reliable and safe transport services for all Campuses

Victorious kindergarten & Daycare at Rubaga - Miracle Campus

Contact Us: P.O Box 26278, Kampala Uganda Tel: 0414 235 041(Central), 0312 101 578 (Rubaga),0312 275 641 (Primary),0312 518 278 (Mukono) Ntinda 0392-176077. Email: [email protected] Website: www.victoriouseduction.com 6|Uganda Investment Review Q&A with Mr. Ignie I. Igunduura, Manager Public Affairs, Civil Aviation Authority(CAA) Q The Civil Aviation Authority CAA has been in exis- parking management system. tence for 23 years. Describe what it has been like. In 2012, the Authority realized traffic growth was con- Before 1991 the civil aviation industry had multiple ad- straining the existing facilities. We are currently handling A ministrative arms, the air transport industry was in decline traffic of 2019 according to projections in our master plan. and several government ministries and departments had So the airport is already congested. taken charge of portions of the industry both at the airport at and elsewhere. Government has already moved quickly to identify fund- Air navigation was under one entity, registration and li- ing and contractors that can undertake the various proj- censing of aviation personnel and aircraft was under an- ects. The projects include, a new passenger terminal, a other, management of airport infrastructure was under a modern cargo center, expansion of the aircraft parking different Ministry, collection of revenues, that is, charges area, a storied car parking facility and resurfacing of the and fees was also totally under a different administration, runway among others. security was also under a totally different administration. That scatter of the industry caused it a lot of problems. Q What is there for private sector investment? In creating the Civil Aviation Authority CAA in 1991, the A The cargo center is an attractive area for private in- Government sought to remedy the scattered nature of vestment. the industry by centralizing its management. Thus the Car parking is another area where the private sector mandate of CAA was; to promote the development of a can come in. safe, regular and efficient civil aviation in Uganda and The ferry port is another investment the private sec- outside Uganda. tor maybe interested in. Since 1991 the airport infrastructure has been upgraded The aircraft maintenance center is a business the pri- and passenger facilities refurbished. Air navigation and vate sector would love to participate in. Major airline communication equipment were replaced or upgraded companies usually run maintenance centers where in some instances. Staff have been re-trained and better was for separation of the international from domestic pas- they service other airlines’ aircraft on top of their compensated. More professional staff were brought in to sengers. Presently passengers travelling to up country own. join the existing team in order to be able to face the chal- airports like Kisoro, Gulu, Arua are processed though the There is also the proposal for a shopping mall at En- lenges of revamping the industry. same facilities and access the aircraft though the same tebbe airport. Commercialization of airports is a fast gates. The fifth recommendation was the expansion of growing trend worldwide. Countries are working to The first ten (10) years (1991-2001) were for rehabilita- the Apron at Entebbe. The aircraft parking currently has attract passengers to stay at airports longer by hav- tion and refurbishment of existing facilities. Spanish and only eleven berths. ing facilities like hotels, tennis courts, swimming Danish financial support worth about 52 million USD re- pools, cyber cafes, book shops etc. The concept habilitated the aeronautical infrastructure and also refur- Q How has the implementation of the plans pro- is called the ‘airport city’. Ideally you create a city bished the passenger movement areas. gressed? around the airport. This has been very successful A in Singapore, Dubai, Amsterdam, Mauritius, etc. We The next ten years (2001-2011) were spent on capacity We embarked on the short term phase of the plan in can also have convention centres, where people can building. CAA adopted a Master Plan for developing En- 2005, the year Uganda was confirmed as the host for meet and fly away again. tebbe airport in 2002. The American transportation group, CHOGM 2007. Among the priorities of Government at the LPA, recommended the construction of a new cargo cen- time, was the refurbishment and upgrading of the airport Q What about the other airports in the country? tre, development of a Ferry Port to enable transportation facilities. CAA already had the master plan in place. of fuel from the lake ports of or Mwanza. This CHOGM helped us fast track a number of projects in A CAA has already developed upgrade plans under the na- would ensure delivery of much larger volumes of fuel the master plan. We expanded the passenger terminal tional civil aviation master plan. The Authority is looking at compared to use of trucks. The CAA hopes to encourage building especially the arrivals area. We also put up a do- Arua, Gulu and Kasese. Gulu and Kasese are supposed the private sector to invest in the Ferry Port to handle the mestic passenger terminal building. However the building to attain international status to provide alternate facilities fuel transportation business. was transformed into a VVIP reception center in order to for Entebbe. Master Plans for the airports are ready. The third recommendation was the extension of the pas- accommodate the Heads of State and Government that Preliminary estimates put Kasese at about 80 million senger terminal building, while the other recommendation came for CHOGM. CAA also installed an automated car USD and Gulu at about 45 million USD. Gulu’s runway is 3.1 km which is adequate for commercial traffic while Kasese’s runway will need to be extended from the pres- ent 1.7km to about 2.5km. We shall need to widen the runway to 45 metres and also put airport terminal build- Are you ings, control tower, cargo center, runway lights, fire fight- ing equipment etc. For Arua, we are about to complete the passenger ter- LOOKING minal building capable of handling 100,000 passengers for an a year. We have also built new staff houses and are ex- NGO panding the aircraft parking area. All the thirteen up country airports are fully operational to work but are not busy largely due to the lack a city airport in with? Kampala. The Civil Society Handbook Q Tell us about the EAC regional civil aviation industry A Regionally our biggest achievement has been the es- tablishment of the Civil Aviation Safety and Security CIV on work they do IL SOCIE Oversight Agency (CASSOA) based in Entebbe. This HANDBO TY and where they OOK Ug organization is able to keep guiding the region in areas ganda 20 operate 014 of aviation safety and security but also coordinates the effort of putting together a pool of experts. As a region we do not have all the experts we need. The ones available To get your copy of the book or to be part of the are expensive to permanently employ. So part of what 2015 issue Contact Lukia / Lucia / Delilah: 0414 371 580 / CASSOA is doing is to maintain a pool of experts that can 0312 517 044 / 0701 965704 / 0772 373 117 / 0774 714 921 be shared by the region.

Harmonization of civil aviation regulations in the region is another achievement. We are seeking to operate under a single set of regulations. The vision of the EAC Heads of State is to operate a single air space. As such flights between EAC member countries would operate as do- mestic. Uganda Investment Review |7

Civil Aviation Authority

Artistic impression of the proposed expanded passenger terminal building and cargo centre at Entebbe International Airport. Works are slated to commence in early 2015. OUR VISION “The Safest, most efficient and affordable air transport system in Africa and beyond”

“According to the CAA master plan

20 years projection for development of Entebbe Airport, the current terminal building and passenger movement areas are handling passenger and“ cargo traffic projection of 2019, meaning that congestion at Entebbe airport is already with us.

Entebbe International Airport P.O Box 5536 Kampala, Uganda Tel: +256 414 321437, 414 352020 Fax: +256 414 321401, 320571 www.caa.co.ug 8|Uganda Investment Review

Uganda National Roads Authority UNRA IN THE KAMPALA INDUSTRIAL BUSINESS PARK (KIBP)

UNRA has so far undertaken road works on the 4km road from the Kampala-Jinja high- way to Roofings Rolling Mills located at KIBP. Approximately 60% of the work has been ac- complished and 40% is yet to be done. The total project cost is about 800 million Uganda shillings

In May 2014, Works and Transport Minister, Eng. Abraham Byandaala commissioned the upgrading to class II paved standard of 4km access roads complete with a seven meter as- phalt concrete carriageway flanked by a meter shoulders in the Kampala industrial business park KIBP.

He noted that the project is one of the clear indicators of the success and effectiveness of the Public-Private Partnerships. The project whose works are nearing completion has its starting point from Kampala-Jinja main road via the UIA offices and ends at the Roofings Ltd plant.

Through a partnership between its agencies, the Uganda Investments Authority (UIA) and the Uganda National Roads Authority (UNRA), the government has undertaken the develop- ment of roads in the parks, starting with the He noted that the Kampala Industrial and Business Park (KIBP) project is one of at Namanve. the clear indicators of the success and effectiveness of The project is contracted to Aurecon AMEI Ltd the Public-Private and Spencon-Stirling joint venture as the engi- “ Partnerships. neer and contractors, respectively.

In our effort to help serve our customers better and obtain feedback from all our stakehold- ers, we have installed a customer care hotline and email to be able to listen to you better. TALK TO US! 0312233111 or 0414318111, Email: [email protected]

Unra Roads @UNRA_UG

Tel:+256 312 233 100, +256 414 318 000, Fax: +256 414 232 807 Email: [email protected] Website:http://www.unra.go.ug Plot 5, Lourdel Road, P.O Box 28487 Kampala,Uganda