The business week saw major events happening, notable among which was the appointment of Dr Ramathan Goobi as new Permanent Secretary for Ministry of Finance. Elsewhere, government has drawn a Shs1.3 trillion budget in preparation for a third wave of Covid-19 as URA records 14.9% growth in revenue for FY2020/21. Here is what made major news in the week;
Uganda’s June coffee exports hit 30-year record high
The week started with good news ofUganda having exported 618,38860 bags of coffee worth $58.56 million (about Shs207 b) in June 2021, the highest ever in a single month since 1991.
The Uganda Coffee Development Authority (UCDA) monthly report for June 2021 shows that of the 618,388 60 bags, 565,449 were of Robusta valued at $50.25 million, while 52,939 were of Arabica valued at $ 8.31 million.
This was an increase of 47.04% and 46.63 % in quantity and value respectively, compared to the same month last year, the report indicates.
By comparing quantity of coffee exported by type in the same month of last Coffee Year (June 2020), Robusta increased by 63.89% and 72.56% in quantity and value respectively, while Arabica exports decreased in both quantity and value by 29.93% and 23.16% respectively.
Prudential Uganda completes transfer of IAA Health Insurance Business
Prudential Assurance Uganda Limited (Prudential Uganda) on July announced successful transfer of the policy holders, staff and agents of International Air Ambulance Healthcare (IAA Healthcare) to its business.
This follows a comprehensive transfer process that was presided by the insurance industry’s supervisory body, the Insurance Regulatory Authority (IRA).
Commenting on the transfer, Mr Arjun Mallik, Regional CEO of Prudential Eastern and Central Africa said the development is a major milestone for their business in Uganda.
Mallik added that the milestone demonstrates Prudential’s commitment to rapidly expand in Africa which is an important part of the firm’s growth strategy.
“At Prudential, our purpose is to help people get the most out of life. We want to assure our new and existing customers that we are committed to continuously provide them with quality and affordable health insurance, delivered with the highest level of service,” said Mr Mallik.
Prudential which started its business in Africa in 2014 and expanded into Uganda in 2015 has today, grown to become the largest life and health insurers in Uganda.
URA records 14.9% revenue growth but falls short of 2020/2021 target
As it marked 30 years, the Uganda Revenue Authority (URA) announced that it had registered a 14.9% revenue growth in the Financial Year 2020/21, the highest in the last four financial years.
However, the revenue growth still fell short of the government target for the 2020/2021 financial year.
Mr John Musinguzi Rujoki, the URA Commissioner General, on Thursday revealed that they collected Shs19.2 trillion in 2020/2021, a 14.9% revenue growth compared to the FY2019/20.
Of this, domestic revenue collections were Shs12.14 trillion, registering a growth of 13.71% in comparison to FY 2019/20.
Mr Musinguzi said this is the highest growth registered in the last four financial years. In the FY2017/18 the growth was at Shs1.7 trillion, in FY2018/19 it was Shs2.1Tn, and Shs134Bn.
“Despite the pandemic this financial year, we were able to grow the revenue collection and this is a commendable job,” he said.
URA, however, did not hit the Shs21.6Tn target that was set by Parliament, falling short by Shs2.3Tn.
MUBS lecturer Ramathan Ggoobi appointed new Finance PS
President Yoweri Museveni on Thursday, July 15, 2021, appointed new Permanent Secretaries, with Ramathan Ggoobi replacing Keith Muhakanizi at Ministry Finance.
Ggoobi, a policy analyst, and researcher, is expected to bring the much needed technical knowledge to the ministry. He lecturers economics at Makerere University Business School (MUBS) and has co-authored several studies on Uganda’s economy.
Born in Ngando, Kitagobwa – Butambala to two teachers, Ggoobi studied at Kitagobwa UMEA Primary and Secondary schools, before joining Makerere University.
He graduated from Makerere University in 2003, being among the best students and was recalled to teach Economics at the university. Inspired to love economics by the former governor of Bank of Uganda, Dr Sulaiman Kiggundu (RIP), who gave talks at Ggoobi’s school.
In other appointments, Beti Kamya is new Inspector General of Government while former Deputy IGG Mariam Wangadya has been appointed Head of Uganda Human Rights Commission.
Govt draws Shs1.3 trillion budget in anticipation of third Covid wave
The government has drawn a contingency budget of Shs1.32 trillion that details how to handle a third coronavirus wave should it hit the country.
The plan, which will be presented to Parliament next week, details the different areas such as coordination, vaccination, surveillance and case management.
The country is battling a second wave of the Covid-19 pandemic, which has so far claimed 2,203 lives and Prime Minister Robinah Nabbanja, who will present the budget, said the government has learnt lessons from the current wave.
“In anticipation of a potential resurgence of COVID-19 in another wave and after a mid-term review, the Ministry of Health together with partners between the months of February and March developed a COVID-19 resurgence plan,” reads part of the report.
The resurgence plan indicates that government will need a total of 1.32 trillion Shillings budget and part of this will cater for coordination (12 billion), surveillance (59.3 billion), laboratory (84.98 billion), case management (93.8 billion), risk management (68.1 billion), community engagement (6.5 billion), SIR (70.3 billion), logistics (808 billion), continuity of essential services (114.1 billion) and vaccination (2.62 billion).
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