At Kikubolane, it has been another busy week in matters business. From Entebbe’s passenger traffic shooting to record levels to Uganda government seeking a Shs3.8 trillion supplementary budget four months into the new financial year, we bring you events that dominated the week.
Entebbe passenger traffic shoots to record levels since Covid lockdown
Entebbe International Airport in October 2021 recorded 100,455 passengers, the biggest number since resumption of commercial passenger operations in October 2020.
Of the 100,455, 45,799 were arrivals and 54,656 departures. Civil Aviation Authority says in October the airport averaged 3,240 passengers per day.
Comparatively, the airport recorded 79,192 passengers in September, 71,360 passengers in August, 52,731 in July and 69,346 in June.
What is pushing up prices of food and related items in Uganda?
For the last one month, prices of food and related items such as cooking oil and personal care items like soap have been on the rise.
According to data contained in the Uganda Bureau of Statistics Consumer Price Index for October Ubos, retail prices for selected goods rose by an average of 10 percent.
According to manufacturers, the recent introduction of a 200 Shillings levy on each litre of cooking oil, and the 10 percent import duty on crude palm oil are responsible for the increase in prices of edible oils, cleaning products, and personal care items.
Energy drinks manufacturers on the spot amid growing safety concerns
Parliament’s Trade Committee has summoned 10 producers of energy drinks to explain themselves in connection with claims that their products are laced with harmful drugs.
The committee led by Mwine Mpaka was on Monday interacting with officials from the Uganda National Bureau of Standards (UNBS) about the reported number of substandard goods getting into the country.
In the meeting, several MPs said the different energy drinks producing companies were misleading people with adverts indicating that their products boost sexual stamina and correct erectile dysfunction.
Uganda govt seeks Shs3.8 trillion supplementary budget four months into new financial year
Lawmakers on the Budget Committee are scrutinising a Shs3.8 trillion supplementary budget, of which Shs1.3 trillion has already spent as being within the limit allowed by the Public Finance Management Act.
Section 25(1) of the Public Finance Management Act allows accounting officers, subject to the approval of the Permanent Secretary/Secretary to Treasury to spend up to an additional three per cent more of the appropriations made to it without prior approval by Parliament.
Those over and above three per cent and requiring prior approval by Parliament includes a request for Shs11.4 billion to ‘meet the outstanding PAYE and Withholding Tax for the Commission of Inquiry into Land matters.’
State House needs Shs272 billion to fund Kiira Motors with Shs104 billion for classified expenditure.
Uganda govt inaugurates BPO and Innovation Council to create jobs for youth
The Minister of State for ICT, Ms Joyce Ssebugwawo, has inaugurated the Business Processing Outsourcing (BPO) and Innovation Council that is tasked with formulating strategies for creating jobs for the youth through ICT outsourcing.
The first of its kind in Uganda, the council will work with the Ministry of ICT and National Guidance to prescribe regulatory frameworks/reforms and projects relevant to the growth of the BPO and Innovation industry.
The council will also identify, support and scale up breakthrough technologies and disruptive innovations.
Concern as Ugandan gold dealers halt exports over high taxes
Until June 2021, gold was Uganda’s leading leading export commodity, contributing at least 44 percent of total export earnings, according to data from Bank of Uganda.
For instance, the precious metal overtook coffee to become Uganda’s most important commodity, with gold exports totalling $1.7 billion between November 2019 and December 2020.
But in July 2021, Uganda did not export any gold, causing a massive drop in export receipts, according to Bank of Uganda.
As a result, Uganda’s export receipts for July declined to $300.39m (Shs1 trillion) compared to $455.44m (Shs1.6 trillion) in June.
Since then, Uganda has not exported any gold.
So what could have happened?
Government introduced a 10 per cent and 5 per cent levy for every kilogramme of unrefined and refined gold, respectively in the new financial year budget of 2021/2021.
Experts say the unhappy gold dealers decided to withhold the exports, demanding that government amends tax provisions that were effected in July.
Chipper Cash launches platform that allows Ugandans to buy stocks for as low as Shs3,600
Chipper Cash on Thursday, 11 November 2021 launched its Global Stocks Investing Product, making it possible for Ugandans with an internet-enabled phone and mobile money to invest in US stock markets.
The platform enables Ugandans to invest in global companies like Apple, Jumia, Amazon, and Google by buying fractional shares for as low as $1 (Shs3,600).
Chipper Cash becomes the first company to offer fractional stock investing in Uganda and is licensed and regulated by the Capital Markets Authority.
28 Ugandan businesses benefit from NSSF, Mastercard Hi-Innovator programme
A total of 28 Ugandan agribusinesses have received grants worth $30,000, in addition to six months’ worth of technical assistance, business development and market development support to scale their businesses.
The agro-processing and agro-industry value chain start-ups received the support as part of the National Social Security Fund (NSSF) and Mastercard Foundation’s Hi-Innovator entrepreneur support programme.
NSSF’s deputy managing director, Patrick Ayota, said, “The Hi-Innovator is about taking a chance on great business ideas while they are at their most vulnerable stage of their business cycle, and at a point where no financial institution is willing to invest in them.”
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