This week was action-packed in matters business. From the rising fuel prices to Airtel’s plan to list on the stock exchange, we bring you items that made news.
Finance PS Ggoobi calls for calm amid rising fuel prices
The Permanent Secretary in the Ministry of Finance, Planning and Economic Development, Mr Ramathan Ggoobi, early this week said the rise in fuel prices is temporary and will soon go back to normal.
Motorists are digging deeper into their pockets following an increment in fuel prices countrywide, with a litre of petrol crossing the Shs5,000 mark.
But according to Ggoobi, the current spike has caused by administrative decisions to control the spread of COVID-19.
“Fellow Ugandans, the current spike in fuel prices has nothing to do with economics. It was caused by a temporary exogenous shock caused by administrative decisions to control the spread of Covid-19 here and globally. The responsible parties are addressing them. Soon prices settle,” he said last Sunday.
Soon the fuel prices will settle back to market-clearing equilibrium, he added.
E-commerce traders call on Uganda govt to lift curfew on boda boda
The E-Trade Association, an umbrella organisation for companies such as Jumia, SafeBoda and Glovo that use the Internet in Uganda, has called for the lifting of the boda boda ban after 6pm.
The curfew on boda boda operations has remained in place despite the President reopening the economy. The 7pm curfew will also be lifted on January 24 but the one on boda boda will remain.
But the E-Trade Association of Uganda says the boda boda ban will affect mobility and economic recovery.
“There are no jobs in this country and the boda boda industry has tried to dissolve unemployment among the youth,” Ricky Rapa Thomson, SafeBoda co-founder and director, said at a press conference in Kampala on Monday, 17 January 2022.
“Bodas transport so many types of people such as officers, students, business people among others as well as commodities. Let the government help and listen to our cry. After agriculture, boda boda is the second most employing sector We can’t leave these people working at less capacity. We believe Uganda is our country, we seek the fairness,” he added.
Mr Issa Sekito, the spokesperson of Kampala City Traders Association (KACITA), said: “It is a lie that you have opened the economy and the Boda bodas are still under curfew restriction. Boda boda has a very big hand in this country’s business. You can’t open the economy and leave bodas out.”
Ugandan fintech Asaak secures Shs100b funding to scale up boda boda financing programme
Asaak, a financial technology company operating in Uganda, has raised $30 million (about Shs105b) through crowd funding.
The funds will help the fintech to provide financing to Ugandans who wish to acquire motorcycles and smartphones through leasing.
Asaak’s boda boda financing programmes approves drivers for loans based on financial and behavioural data, such as the number of trips completed on mobility apps, including Bolt (Taxify), Safeboda, Uber and Jumia.
Uganda Airlines wins Africa and World’s Youngest Aircraft Fleet Award for second year in a row
Uganda Airlines was this week awarded the ch-aviation Youngest Aircraft Fleet Award for Africa and the World for the second year running.
The ch-aviation Youngest Aircraft Fleet Award recognises airlines from across the globe that keep a young, modern, and efficient fleet. For the first time, ch-aviation also recognises Aircraft Leasing companies with the ch-aviation Youngest Aircraft Portfolio Award.
“Congratulations to Uganda Airlines for winning the ch-aviation Youngest Aircraft Fleet Award for the second year in a row, with an average aircraft age of 1.95* years,” the award organisers posted on Monday, January 17, 2022.
Airtel Uganda in final discussions ahead of listing on Stock Exchange
Telecom company Airtel Uganda is in discussions with the different stakeholders about listing on the Uganda Securities Exchange.
Mr David Birungi, the Airtel public relations manager, is quoted by Daily Monitor newspaper as confirming the development.
He, however, does not divulge details, saying that the public will be informed when all is set.
Airtel is expected to sell at least 20 per cent of its shares through an Initial Public Offer.
Listing on the USE is a condition for renewal of licences for foreign owned telecom companies under the National Broadband Policy.
Govt wants Umeme to halt new investments as power firm’s 25-year concession nears expiry
The Ministry of Energy and Mineral Development has recommended the halting of new investments by energy distributor, Umeme ahead of the expiry of its 25-year concession in 2025.
The Minister of State for Energy, Sidronius Okaasai Opolot said this during a meeting with members of the Committee of Environment and Natural Resources to respond to issues raised during the scrutiny of the budget framework paper for the financial year 2022/23.
Okaasai said that as Ugandans demand for electricity infrastructure, that has got an impact on the final buyout of Umeme, there is a need to watch out for new investments made.
“To manage the concession buyout and minimise suffocating expenditure of Government when the Umeme concession ends, it is important that additional investments by Umeme be regulated and or halted to reduce on the final buyout amount,” Okaasai told the committee.
He added that Government should start providing annually for buyout amounts.
Govt on the spot over failure to stock national oil reserves amid escalating fuel crisis
Members of Parliament have quizzed officials from the Ministry of Finance, Planning and Economic Development over the skyrocketing fuel prices in the country.
The MPs on the Committee of Finance believe that the ongoing fuel crisis would have been averted if the county’s oil reserves were full.
Apparently, the oil and gas sector is among the unfunded priorities in financial year 2022/23 and the Finance Ministry is seeking additional funding of Shs48 billion to capitalize Uganda National Oil Company (UNOC) to execute its mandate as an investment arm of government in oil and gas industry.
MTN Uganda taps Richard Yego to head its Mobile Money unit
MTN Uganda has appointed Richard Yego as the Managing Director of its Mobile Money platform.
“We are delighted that Richard Yego joins the MTN family as the Managing Director for MTN Mobile Money Uganda. He brings with him a wealth of experience attained from his journey through the banking and digital financial services sector, which will be pivotal to the realization of the company’s strategy and vision of creating a modern connected world,” Mr Wim Vanhelleputte, a member of the board of directors of MTN Mobile Money Uganda and the CEO of MTN Uganda, said.
Prior to his appointment at MTN, Yego served as the CEO of the Agent Banking Company of Uganda where he was responsible for the overall operations of the Joint Venture Entity of Uganda Bankers’ Association and Eclectics International.
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