The week of August 9 – August 15 has been action-packed in the field of business. From the increase in Uganda’s electricity exports to the Shs200b stimulus package for SMEs, we bring some of the events that made news this week.
Uganda’s power exports increase
On August 10, Kikubolane.com reported that Uganda collected $26.84m (about Shs95b) from exporting electricity between June 2020 and June 2021.
According to the Bank of Uganda report for June 2021, Uganda’s electricity exports increased from $24.5 million (about Shs87b) in June 2020 to $26.84m (about Shs95b) in June 2021.
This was an equivalent of 294,194 megawatts in June 2021, up from246,352 megawatts exported during the same period ended June 2020.
Uganda sells electricity to the neighbouring countries of Kenya, Tanzania, DR Congo and South Sudan.
The Uganda Electricity Transmission Company Limited (UETCL) attributes the increase to the good performance of the Uganda Shilling against the dollar.
UTL signs partnership to extend Internet services
On August 10, Uganda Telecom Limited (UTL) announced a partnership with AST SpaceMobile, Inc. to extend Internet services to all parts of the country.
UTL said under the partnership, they will use AST SpaceMobile’s cellular broadband network to provide Ugandans with 100 per cent network and data coverage across the country.
“The combined effort would explore opportunities to offer Uganda Telecom network users access to AST SpaceMobile’s planned network using their cell phones and other devices, any time, and anywhere within the country, including rural areas that do not currently have cellular broadband service,” UTL said in a statement issued on Tuesday, August 10, 2021.
AST SpaceMobile, Inc is a global telecommunications company that is building the first and only space-based cellular broadband network accessible directly by standard mobile phones.
Centenary Bank Uganda explains Shs600 account balance charge
Centenary Bank Uganda this week defended the Shs600 charge for checking the account balance, saying it is meet the costs of mobile banking under their CenteMobile App, which is still being tested.
According to Centenary Bank, the charge will be removed when more of their customers embrace the mobile banking platform.
Centenary Bank had over the previous week come under criticism from a section of the public that said the charge is unfair.
But according to the bank, new technologies come with a lot of responsibility for customer security of funds and uptime that call for different pricing depending on customer profiles and adoption timelines of new technologies.
Uganda Breweries, OWC agree to promote local content
On August 10, Uganda Breweries Limited (UBL) and the Operation Wealth Creation (OWC) entered into a partnership that will see the former buy local raw materials during brewing of beer and spirits.
The two parties signed a Memorandum of Understanding at Purongo-Afro-Kai Centre in Nwoya District, Northern Uganda, on Tuesday, August 10, 2021.
The five-year partnership will be anchored on UBL’s close collaboration with OWC and other relevant stakeholders and public institutions in Uganda in line with the overall goal of The Third National Development Plan (NDP III).
UNRA pledges to complete Kampala Flyover project on schedule
The Uganda National Roads Authority (UNRA) on August 11 pledged to complete the construction of the first phase of the Kampala Flyover project by December 2022 amid challenges.
According to UNRA Executive Director Allen Kagina, despite experiencing delays due to the COVID-19 pandemic, working is going on as planned.
“Owing to the Covid-19 pandemic, we experienced delays in importation of project-critical equipment as the world shutdown. Additionally, a big number of our staff and the contractor’s staff contracted the virus so we had to initially scale down the operations for the safety of personal,” Kagina said.
Finance ministry, SMEs agree on Shs200b stimulus package
The Ministry of Finance, Planning and Economic Development together with representatives of small businesses early this week agreed on the modalities of the disbursement of Shs200b Covid-19 stimulus package.
Henry Musaasizi, the State Minister for General Duties in the Finance ministry, says the funds will only be accessed by groups or individuals that have not accessed other government initiatives such as Emyooga.
He adds that government will contribute Shs100b to the fund while commercial banks willing to manage the funds on behalf of Bank of Uganda will contribute the remaining Shs100b.
According to John Walugembe, the executive director of the Federation of Small and Medium-Sized Enterprises (FSMU) in Uganda, they agreed with the Finance ministry officials to quickly draft a proposal on who will benefit from the money.
Uganda Airlines test-flights Airbus A330
Uganda Airlines on, Thursday, 12 August 2021 held a demonstration flight to Johannesburg with the Airbus A330.
According to the Uganda national carrier, this is part of the process aimed at obtained an Air Operator Certificate (AOC) for the Airbus A330.
“Today Uganda Airlines will have a demonstration flight to Johannesburg with the Airbus A330 as a step towards attaining the AOC. If you look out, you just might get a glimpse at the beautiful crane,” Uganda Airlines said on Thursday.
Any individual, organisation or company that wishes to operate an aircraft for the purpose of commercial air transport must, by law, obtain an Air Operator Certificate (AOC). This requires the operator to have personnel, assets and system in place to ensure the safety of its employees and the general public.
Bank of Uganda maintains lending rate at 6.5 percent
Bank of Uganda (BoU) has maintained the Central Bank Rate (CBR) at 6.5 percent to stimulate the economy that is reeling from the effects of the second Covid-19 induced lockdown.
BoU Governor Emmanuel Tumusiime-Mutebile said at the Monetary Policy Committee (MPC) meeting of August 2021, they decided to keep the Central Bank Rate (CBR) on hold at 6.5 percent.
Mr Mutebile noted that the second Covid-19 wave and the associated containment measures have interrupted the economic recovery.
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