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PSFU E-Newsletter JAN-FEB 2012

Meeting with H.E Mwai Kibaki, Chairman of EAC Summit of Heads of State at Harambe House, Nairobi

EABC arranged a meeting with President Mwai Kibaki, Chairman of EAC Summit. The meeting took place at Harambe House, Nairobi on 20th January 2012. This meeting was made to coincide with the EABC Executive Committee meeting. The Ugandan Delegation was composed of the following: Hon. Gerald Ssendaula- Chairman PSFU and Head of EABC –Uganda Chapter, Jim Kabeho- Member EABC Executive Committee, Moses Ogwal from PSFU- Focal Point, Amos Wekesa- Chairman Uganda Tourism Association- UTA, Kasim Umar- Chairman Uganda Clearing and Forwarding Association- UCIFA The following issues were discussed.

Adoption and Implementation of the Framework for Private Public Dialogue as follows; 1. Implementation of agreed Policies;

EAC Double Taxation Agreement To fully implement the SQMT Act

(2006), the following should be fast tracked: Operationalisation of the Competition Act (2006), Implementation of the agreed Overweight Control Measures

Enforcement of Agreed EAC CET on certain products such as Cement, locally assembled motor vehicles

Implementation of the EAC Industrial Policy and Strategy, which was adopted in November 2011

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2. Road Map to a fully Fledged Customs Union 3. Implementation of the EAC Common Market

Protocol 4. Infrastructure Impediments- Including Port of

Mombasa 5. Tourism- 6. Denial of entry for Ugandan registered vehicles

into Kenya parks; Delay in adopting of the EAC tourist

Visa and Modification of Tourist vehicles in

Kenya during transit to Uganda. 7. EAC Polythene Materials Control Bill, 2011 8. Compensation Claim to Uganda and Rwandese

Traders arising from the Post Election Violence in Kenya

Stake holders’ Consultative Meeting on Cooperatives

PSFU participated in a consultative meeting organised by Uganda Corporative Alliance (UCA) with a view of further executing her mandate of advocating for improvements in the Agricultural Sector through Cooperatives in Uganda.

The Objective of the workshop was to engage various key stakeholders to agree upon how the Government of Uganda can support the cooperative sector without undermining its autonomy as a way of promoting sustainability. Cooperatives had systematically phased out of production and commodity marketing leaving a serious impact upon farmer’s income / earnings.

A number of issues were noted including;

Lack of mass expertise on lobbying and advocacy on a larger scale to enable members compete effectively (locally, regionally and internationally),

Less involvement of women in the cooperative sector, there is need to strike a gender balance, women form the largest labour force in agriculture sector,

Inadequate business management skills

Absence o f a shared vision between the cooperative movement and this can be partly attributed to inadequate statistical data for cooperatives.

Government intervention needed for cooperatives to deliver their mandate

1. Facilitate Cooperative education and trainings, this will improve managerial skills and it can be achieved through Government setting up more institutions in addition to the Kigumba Cooperative College in Masindi, further still the secondary and primary school curriculums ought to incorporate cooperative studies and this can be attained through initiating discussions with the NCDC.

2. Government should also mandate UCA to spear head the revival of cooperatives right from grass root level (facilitating their formation), expedite enactment of the Cooperative Act, there is need for a fully fledged Ministry in charge of cooperative movement.

3. Capacity building should be enforced and given priority as well as ensuring law enforcement and providing institutional support, just like in the South East Asia, Japan and Ethiopia where cooperatives are fully backed up by Governments, while in Uganda the Cooperative Alliance is ill-supported from membership subscription fees.

Agricultural Value Chain Analysis

Private Sector Foundation through the policy advocacy unit organised a consultative workshop with key stakeholders involved in the entire Agricultural value chain.

The objective was to discuss emerging issues and identify means of boosting production through value addition in the agricultural sector. The participants were drawn from various parts of Uganda dealing in Agriculture along the entire value chain1

1 These were drawn from the East, North, West and those in the Central region in the processing circles

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Key emerging issues:

The participants raised challenges categorized under four core areas which include;

Supply side constraints Business environment constraints Market entry constraints and Cross cutting issues

Recommendations;

There is need for a deliberate policy to have the youth massively attracted and engaged in agriculture production2.

Trade information, for both informal and formal trade should be captured and documented for both knowledge and reference purposes.

Appropriate extension services in both crop and animal husbandry should be provided by the agencies like NAADS.

There is a great need for an agricultural bank to be able to access funds easier as there are limited financial products that understand farmers in commercial banks

Quality standards bodies like UNBS should be more involved in the producers’ processes right from the beginning instead of waiting for products that are already on the shelf

Set up regional or district post-harvest handling centres that farmers can access for drying, sorting and storing of their products3

Set up a packaging centre that provides affordable and good quality packaging for food products that will make the

2 The youth are considered today to be very key in development, given their productivity capacity

3 This centre will ensure constant supply of produce even in times of scarcity and reduce price fluctuations

products competitive on an international market

There needs to be a national land policy to address the constraints of commercialization of land and also create incentives for optimization of land usage

Alternative energy is a major constraint that can be addressed through subsidizing of solar energy for large scale production

Drafting of the Final Trade Licensing Amendment Bill

The Ministry of Trade, Industry & Cooperatives called for a Stakeholders meeting to facilitate the drafting of the final Trade Licensing Amendment Bill. This was mainly because the Trade Act of 1969 is obsolete and overtaken by events, it also remains static when changes are in place, it was dealing with only goods and substances, services aspect was no envisaged at that time.

The narrow law is now amended to ensure dynamism, incorporate WTO regional negotiations plus the Common Market requirements, i.e. Uganda is no longer an isolated country now with EAC, to avoid breaking the rules, there is need to amend the law. Court ruling on trading license also looks at only goods hence the need to review amendment for Uganda to meet with her regional and international obligations, they ought to be dynamic. Principals were made and submitted to Cabinet for approval, The stakeholders should be involved for a feasible, beneficial law, Ministry of Justice took lead, and the ruling Cabinet issued drafting instructions for the bill to be prepared.

Concerns/Other Issues

How to incorporate the Court ruling issues into the amended Trade License Act / Bill;

KCCA issues to be incorporated within the principals since the workshop was a directive from the H.E to ensure that this is fast tracked.

The Banking Sector formerly had been exempted from obtaining trading licensed, suite filled by

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banks against attorney general for being excluded from being licensed.

Trade licensing Act was meant to regulate trade in goods not services, so banks were left out. The Ministry had no power to include banks hence the need to review whether the act deals with services as well. If so even other service providers will come on board. Hence amendment of the Act should take place as soon as possible. Trade in services, how about related goods (82 f), communication players, power generators (already complaining. How can we capture inclusion of services in the amendment bill /Act? Exemption of Centenary, standard chartered & Stanbic banks from paying license fees affects other service players and they would stop paying if they go to court. How to cure the defect; service amendment, interpretation- to include trade in services

Climate Change Policy Dev’t

Uganda is in the process of developing a national climate change policy consistent with the current NDP strategic objectives for addressing climate change. A regional climate change policy for the EAC was adopted in 2011 by the heads of states. Therefore EAC also urges member states to develop national policies on the basis of the broader regional policy framework. The Ministry of Water and Environment organized and hosted this inception meeting to guide that process as a parent Ministry.

Objectives of the workshop;

The major aim of the meeting was to review the inception report presented by the consultant to the key Technical Working Group and ensure that their views are captured right from the onset before detailed consultations.

The climate change unit (CCU) under the Ministry of Water and Environment imitates and coordinates the development and review of climate change policies and guidelines spearheading the process. Due to the cross cutting nature and complexity of the climate change issues, the Ministry of Water and Environment in collaboration with other stakeholders

including the development partners engaged consultants to facilitate this process.

Consultative meetings would be held, starting with climate change policy technical working group (CCP-TWG) as an expansion of the already existing climate change policy committee (PSFU to form part of the Climate Change Technical Working Group). The Technical Working Group would oversee the work of consultants for technical guidance.

Mortgage Act Regulations Dissemination Workshop

The Ministry of Lands, Housing and Urban development developed regulations for the Mortgage Act, 2009 which was passed and assented to by the President. To ensure implementation, the Ministry established a regulations drafting committee to develop mortgage regulations and operationalize the provisions of the mortgage act, which provides for a self contained code of regulations on mortgages, and repeals the provisions in the regulations of titles act cap.230 that regulates mortgages.

The major objective of the dissemination exercise was to have an overview of the Mortgage Act, 2009 – presentation of the mortgage regulations (UBA/DFCU) and make the stakeholders appreciate the new law and changes for effective implementation.

The act also recognizes customary certificates as bankable instruments and also provides for mortgaging of matrimonial home with the consent of both spouses (this would help mortgage industry grow)

Way forward (for dissemination of the regulations)

The MoLHUD should develop a summary to brief the public through news papers, sensitize banks; periodic meetings, talk shows, share soft copies with all stakeholders by e-mail & hold sensitizational meetings through workshops.

Umbrella Organizations such as the PSFU, UNCC&I should also be viewed as channels for dissemination of such relevant info to the business community in Uganda.

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JLOS SIP III Consultative Meeting

The objective of the meeting was to review the draft SIP III. It should be noted that the JLOS works in partnership with the Government, Private Sector, CSOs, Donors and Religious sector.

Achievements of SIP II and Challenges; The Government of Uganda increased

Sector Support by 50.3% over the last 10 years, 6.2% share of the National budget.

Improved legal framework and rule of law Starting of Business Improved in Uganda Reduction In Crime Reduction in Human Rights violation hence

increased investor confidence.

The Challenges include: Corruption and rights violation in JLOS enforcement system, Enforcement of laws, Policies and performance of other sectors, Access to legal rights information, Gender justice i.e. for children ,transitional justice –HIV/AIDS, Land justice

Prioritized laws, policies, and standards for development of the JLOS Sector;

These should be fast tracked and they include;

Access to Justice Bill, Amendment to the Children Act, Domestic violence Regulations, Police Act amendment, Witness protection legal aid, Transitional Justice, Anti –torture law, Issues of taxation, Need for counseling especially for sex

victims e.g. children, Involvement of non state actors, Uganda Amnesty Commission- Kitgum,

Amnesty Act, Law for peace in Uganda, African Center, treatment and

rehabilitation of tortured victims (Human rights, compensation),

Capacity building

To sustain the achievements from SIP I ⅈ Legislation should move very fast, and Public Confidence in JLOS activities ought to be ensured. There is also need for strong linkages between other sectors of Government, Non State Actors, complaints desk & feed backs, land issues, value for money, affirmative action, and health sector, among others.

Dialogue between Members of Parliament and Key Stakeholders in the Economy on

High Interest Rates and Loans

Parliament of Uganda organized a one-day dialogue to meet with key players in the economy including Executives. The meeting was attended by; The Prime minister, Ministry of Finance, Minister of Trade and Industry, Uganda Revenue Authority, Deputy Governor, Bank of Uganda, Chairperson Finance Committee, Chairperson Committee on National Economy, Uganda Manufacturer’s Association, Banker’s Association, KACITA, Uganda National Chamber of Commerce and industry, Trader’s Union, Women’s representatives, Farmers, National Tax payer’s protection Association (NTPPA)

Purpose of the Meeting;

Parliament of Uganda called upon stakeholders for this meeting in order to discuss costs of doing business and attain a win- win situation. KACITA was planning to strike on 11th January hence a dialogue was necessary. On 20th December KACITA petitioned speaker of parliament regarding the state of the economy and their key concerns were high interest rates by Commercial banks, for both Commercial and salary loans.

The meeting was intended to achieve the following,

To provide a forum where key stakeholders in the National Economy will interact with the members of the Executive and legislature to share the information, identify challenges and present recommendations for action, improved understanding of the stakeholders’ concerns, consider and adopt some of the recommendations from the stakeholders for action.

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PSFU SME Event 2012 Theme: “Optimizing Financial and Business Development Services for Business Survival and Success”

PSFU has organised an SME event from 29th -31st Feb 2012 at UMA Main Exhibition Hall Lugogo. For the last six consecutive years, PSFU has been organizing the Small and Medium Enterprise event on an annual basis. This event targets Organizations which offer financial and business related services to SMEs. Some of these services include; trade, finance, leasing, mortgage lending, foreign exchange services, telecommunication, IT, property management, electronic banking, money transfer, insurance, Marketing and Advertisement, savings, investment management, stock exchange, banking etc.

The Annual SME day is intended to provide information, networking and capacity building for the PSFU membership by bringing together various business people. The objective of the event is to assist MSMEs have a better understanding about the availability of financial services and business development support and how they can effectively be accessed. The three day interaction encompasses mini exhibitions with motivational speakers and business clinics featuring some of the successful MSMEs that have managed to excel in the international markets.

Key Business Sessions; Banking Gallery for SMEs, One to One Sessions with the Business Doctors, Insurance Solutions for SMEs, How business associations are contributing to SME growth etc

Are you a company or organisation and you would like to partner with PSFU to organise this event, please contact abyaruhanga@psfuganda.org.ug

Proudly Ugandan Back to School Exhibition

Private Sector Foundation Uganda (PSFU) in conjunction with Uganda Manufactures Association and Vision Group organized a ‘Back to School Exhibition’ which took place from 26th -29th Jan 2012 at KCC Grounds Lugogo. The Exhibition was attended by a number of local manufacturers and service providers including; Roofings Group, Sugar Corporation of Uganda (SCOUL), Sameer Agriculture, Makerere University Faculty of Food Science and Technology, Samona Products, Euroflex, Uganda Wild Life Authority (UWA), Movit, Uganda National Bureau of Standards (UNBS) among others. The event was attended by a number of stakeholders from various key business organizations and Government. The event provided an opportunity for Ugandans to appreciate and buy Ugandan made quality products. The “Proudly Ugandan Campaign” is intended to encourage Ugandans to take pride in their country by giving economic priority to our local manufacturers and service providers to enhance development of the country as well as sustain favorable competition in the local, regional and international markets.

New BUDS-DFID for the PRDP Region

BUDS-DFID is a GBP 13 Million 5-year project funded by the UK-Department for International Development (DFID) together with Government of Uganda through the office of the Prime Minister and implemented by PSFU. Implementation of the project started in 2011 and completion is expected in 2015. The project is aimed to stimulate economic growth in the PRDP region.

Goal of the project: To Promote Private Sector Growth, Investment And Employment Opportunities Under The Post Conflict Development Programme (PCDP) In Acholi, Lango, Teso, Westnile, Karamoja, Bukedi And Parts Of Bunyoro Sub region.

Objectives of BUDS-DFID

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Increase in the number of rural enterprise investing in agricultural production, processing and other economic sectors

Increase the number of labour-intensive industries leading to employment creation

Elimination of Gaps in the supply chain leading to processed agricultural products.

Support linkages between investors and the local economy through the supply of raw materials, employment and training

Promotion of trade by rural enterprises including trade outside of their locality

Are you from the PRDP region and you need more information about this project and how you can benefit please contact dkisekka@psfuganda.org.ug

PSFU & Centenary Bank to Conduct Financial Literacy Trainings

Private Sector Foundation Uganda (PSFU) and Centenary Rural Development Bank Uganda with support from Agribusiness Initiative Trust (ABI Trust) will conduct Financial Literacy Trainings for various Business communities this year. Last year, PSFU & Centenary Rural Development Bank trained over 1,237 business entrepreneurs in Financial Literacy in four regions of Uganda.

The major aim of the initiative is improving the financial literacy for Centenary Bank Customers and the business community in areas including but not limited to Managing personal finance, Book keeping, Business management with a focus on family businesses, networking for sustainability, agriculture as a business-entrepreneurship, product costing and pricing of agricultural commodities and effective marketing for agricultural products. The trainings are free of charge as part of Centenary Bank`s Corporate Social Responsibility program for 2012.

The training focuses mostly on Small and Medium Enterprises (SME’s) and Micro Finance customers with a turnover of over Ushs.4 million per year.

The trainings will be conducted by PSFU and Centenary Bank on a monthly basis in the districts of Kayunga, Kiboga, Gulu, Kapchorwa, Kasese, Tororo, Mubende Kabale, Koboko, Wobulenzi. The first training will be held in Kayunga from 28th-29th February 2012.

Apart from the monthly trainings, PSFU will also offer the following; Conduct Mentorship and Media activities

For details about the trainings please contact; lkabuuka@psfuganda.org.ug

Upcoming Events

Private Sector Development Awards Dinner 24th February 2012

Stakeholders meeting to discuss Platform for Action

SME Event–March 2012 PSFU Post Budget Luncheon- June 2012 International Trade Facilitation Expo

July 2012

For comments and details contact

Sarah N. Bakehena Private Sector Foundation Uganda (PSFU),

Plot 43, Nakasero Hill Road Tel:[+256] 0312 263850, 0312 261850, 0312

286849, Fax [+ 256] 312 266440

P.O Box 7683 Kampala, Uganda Email: psfu@psfuganda.org.ug , Website:

www.psfuganda.org.ug snakibuuka@psfuganda.org.ug