This week was another action-packed one at Kikubolane.com. From making case for investing in MTN shares to URA posting a Shs490b revenue shortfall, we bring you a summary of business news that happened around the week.
MTN IPO is good investment – Stanbic CEO
The Chief Executive Officer of Stanbic Bank, Ms Anne Juuko, has urged Ugandans to buy shares in MTN Uganda, saying the telecom sector is a worthwhile investment when considering the macro-economic and industry environment.
MTN Uganda last Monday announced the opening of its Initial Public Offer for 20% of its company’s shares, an opportunity for the public to apply for stake in the company. Each share costs Shs200.
“The local telco industry has actually experienced rapid growth over the past two years driven in part by the heightened adoption of mobile data and fintech services due to the Covid-19 pandemic,” Ms Juuko says.
The Stanbic Bank CEO adds that the MTN IPO will be the largest IPO in Uganda to date and will contribute to the further development of the capital markets in Uganda, by driving increased trading activity on the USE.
“By introducing the option to purchase shares using Mobile Money, the MTN IPO is expected to drive significant growth in the number of retail investors trading on the exchange from 35,000 to a much larger target,” Ms Juuko says.
Stanbic Bank Uganda to offer low interest loans to govt health workers
Stanbic Bank Uganda has signed a partnership with the Ministry of Health to offer a range of low interest loans to health workers across the country.
The loans range from unsecured salary loans to secured loans, mortgages, vehicle and asset financing loans (VAF).
Speaking at the signing ceremony in Kampala on Monday, 18 October 2021, Ms Anne Juuko, Stanbic Bank Uganda Chief Executive Officer, said Ugandan health workers deserve assistance, especially in these times of the Covid-19.
“When I think about everyday heroes, I think about our health workers,” Juuko said.
“Health workers deserve the best. Every health worker deserves a home of their own. We at Stanbic Bank will walk with them in this journey and support their dreams,” he added.
In response, Dr Diana Atwine Kanzira, the Permanent Secretary at the Ministry of Health, thanked Stanbic Bank for always identifying with MoH and supporting them on various fronts.
Cash-strapped MOGAS fuel station placed under receivership
The Ugandan subsidiary of Maestro Oil and Gas Solutions (MOGAS), a multinational dealing in oil products, has been placed under receivership over failure to pay its debts.
Ligomarc Advocates, a financial and corporate law firm, has been appointed administrator of MOGAS.
On Monday, October 18, 2021, the law firm summoned all MOGAS dealers, station managers, and sales managers to a crisis meeting in regard to the receivership.
Kabiito Karamagi, the managing partner of Ligomarc Advocates, wrote: “All dealers are expected to come with copies of their dealership agreements for verification and further management. Any station that does not submit its agreement by the aforementioned date will be assumed to be company-owned and company-operated for purposes of the receivership.”
Kampala traffic jam increasing cost of doing business – Minister
The Minister of State for Kampala Capital City and Metropolitan Affairs, Mr Kyofatogabye Kabuye, has said that congestion in Kampala Capital City has a bearing on the cost of doing business, causing financial loss to travellers who use public transport.
Kabuye said that traffic jam causes fluctuation in public transport fares.
“The most affected persons are the low-income earners making up more than 40 per cent of greater Kampala Metropolitan area’s population, who spend more than 20 per cent of their gross income on transport,” Kabuye said while addressing Parliament on Tuesday.
Kabuye said traffic jam has increased the cost of doing business citing distribution of commodities as one of the most affected activities.
Finance ministry releases Shs5.8 trillion for 2nd quarter of financial year 2021/2022
The Ministry of Finance has released Shs5.811.08 trillion as government of Uganda expenditure for the second quarter of the current financial year 2021/2022.
The Finance Permanent Secretary, Mr Ramathan Ggoobi, while announcing the release on Wednesday, 20 October 2021, said this represents 25.5% of approved national budget excluding external financing, appropriation in aid and public debt.
Of the released funds, Shs437.10 billion will go towards governance and revenue Collection.
URA posts Shs490b revenue shortfall for first quarter of FY2021/2022
The Uganda Revenue Authority (URA) collected Shs4.45 trillion in revenue in the first quarter of the current financial year of 2021/2022.
Mr John Musinguzi, the URA Commissioner General, said while the collection is higher than the Shs3.1 trillion collected in FY 2020/21, it is short of their target of Shs4.95 trillion for this quarter by Shs499.4b.
Mr Musinguzi told journalists at the URA Headquarters in Kampala on Thursday that the tax body is hoping to collect Shs22.4 this FY 2021/22.
Scrapping OTT has increased mobile data usage, says MTN Uganda CEO
The removal of the daily Shs200 on the Over the Top (OTT) tax on social media has encouraged more Ugandans to use mobile data, the Chief Executive Officer of MTN Uganda has said.
Wim Vanhelleputte says since the OTT tax was scrapped at the beginning of the current financial year in July, more people are using mobile data than before.
“Over the top (OTT) tax had affected the use of mobile data because an individual needed two hundred shillings daily before getting connected to their social media accounts,” he told journalists in Kampala on Wednesday.