Uganda Revenue Authority (URA) missed its Shs13 trillion revenue target for the ended 2016/2017 financial year by Shs457.51 billion, Commissioner General Doris Akol revealed on Monday. The less-than-satisfactory collection was, however, Shs1 trillion higher that of the financial year before. Addressing URA’s first press conference this new financial year, Ms Akol attributed the revenue gap to a “sluggish economic performance”. The International Monetary Fund in May, cut back the country’s growth in the ended financial year from the projected 5 per cent to 3.5 per cent, citing, among other things, volatility of food prices due to prolonged drought. The commissioner general said limited credit to the private sector last financial year adversely affected manufacturing, whole sale and retail construction, diminishing domestic revenue generation from taxes. Constrained aggregate demand in the economy affected companies’ profitability and corporation tax returns in the 2016/17 FY, she said, adding that their counterparts in East Africa, except Burundi, too failed to meet revenue targets. In Uganda’s case, she said, traders decided to warehouse goods or re-export them to mainly Kenya and Rwanda, which further affected the customs revenue. Export goods Official records show that re-exported goods nearly tripled during the financial year that ended on June 30. Ms Akol outlined tackling fraud, enforcing compliance and improved human resource as priority areas to reduce revenue loss in the future. Source: Daily Monitor

Was the Africa Growth and Opportunity Act a poisoned chalice from the United States of America? It appeared so after the US allowed a petition that could see Tanzania, Uganda and Rwanda lose their unlimited opening to its market. This follows the US Trade Representative assenting last week to an appeal by Secondary Materials and Recycled Textiles Association, a used clothes lobby, for a review of the three countries’ duty-free, quota-free access to the country for their resolve to ban importation of used clothes. The US just happens to be the biggest source of used clothes sold in the world. Some of the clothes are recycled in countries like Canada and Thailand before being shipped to markets mostly in the developing world. In East Africa, up to $125 million is spent on used clothes annually, a fifth of them imported directly from the US and the bulk from trans-shippers including Canada, India, the UAE, Pakistan, Honduras and Mexico. The East Africa imports account for 22 per cent of used clothes sold in Africa. Suspending the three countries from the 2000 trade affirmation would leave them short of $230 million in foreign exchange that they earn from exports to the US. That would worsen the trade balance, which is already $80 million in favour of the US. In trade disputes, numbers do not tell the whole story. Agoa now appears to have been caught up in the nationalism sweeping across the developed world and Trumponomics. US lobbies have been pushing for tough...

Kenya has emerged as the continent’s trailblazer in championing women’s representation in top management of companies, despite failing to attain the constitutional one-third gender requirement. A report by the Kenya Institute of Management (KIM) and the Nairobi Securities Exchange (NSE) shows that listed multinationals fared better than indigenous firms in women representation on boards, at 27 per cent, against 20 per cent. The number of women in boards rose to 21 per cent this year, from 18 per cent in 2015 and 12 per cent five years ago. “The number of women heading boards remains low, with just five of the 52 (out of 62) listed companies that responded in the survey headed by a woman, similar to what it was five years ago. We also note that like in the boardroom, women representation in senior management was a quarter, meaning that there is one woman for every four men in the senior management teams,” said KIM chief executive Muriithi Ndegwa. In terms of the average representation on boards of women, Africa came fourth at 13 per cent behind Europe and Australia at 26 per cent and North America at 20 per cent. The ratio was however higher than South America at eight per cent and Asia at nine per cent. NSE chief executive officer Geoffrey Odundo said that the presence of a diverse and inclusive organisation is one of the greatest business catalysts that exist to broaden the talent pipeline, enhance brand and corporate reputation. “For diversity and inclusion...

Investors and organisers of the YouthConnekt Africa Summit that took place in Kigali from July 19-21, aim to raise $60 million to finance innovative projects by young entrepreneurs as part of efforts to create 10 million jobs before 2020. The event, which was organised in collaboration with United Nations Development Program (UNDP) and United Nations Conference on Trade and Development (UNCTAD), is in its fifth edition. It brought together 2,500 delegates including heads of states, motivational speakers, celebrities, business leaders, investors, young innovators and development partners. Under the theme From Potential to Success the conference marked the launch of the YouthConnekt Africa Hub and Empowerment Fund that will identify and finance business projects for young entrepreneurs. Baraka Ochieng, programme analyst at UNDP regional office for Africa, told Rwanda Today that YouthConnekt has demonstrated the potential to empower young Africans in different sectors. “As Africa, one of the challenges faced by youth is unemployment, lack of entrepreneurship opportunities; lack of space in decision making within government and leadership. “So this platform provides many opportunities for the youth to be empowered. One of the goals is to create 10 million jobs,” Mr Ochieng said. On the creation of the YouthConnekt Africa Hub and Empowerment Fund, participants will have to agree on a model of outsourcing pledged funds and projects. Projects that promote Sustainable Development Goals (SDGs) are likely to secure funds from the UNDP. The Empowerment Fund seeks to raise $60 million before 2020 to finance key agendas like creating jobs for more than 10 million people...

The Rwanda Revenue authority is switching to an upgraded version of the electronic billing machine to help meet value added tax (VAT) targets for fiscal year 2017/18. The tax body is banking on the new version of electronic billing machine to improve tax compliance — a key aspect of increasing revenues to fund 66 per cent of the country’s budget. Analysts at Rwanda Revenue Authority (RRA) hope the new system will boost VAT collection from Rwf354.1 billion ($423.5 million) last fiscal year to Rwf393.5 billion ($471.2 million) in 2017/2017 fiscal year. RRA has a target to collect Rwf120 billion ($143 million) more in the new fiscal year. While VAT remains the largest contributor of tax in Rwanda, according to Richard Tusabe, commissioner-general of RRA, the challenge is that many people are not complying with tax obligations. As a result the tax body is not collecting as much, as people sell more but declare less. “The first electronic billing machine system has some challenges such as lack of communication between devices used by one taxpayer and the device along the value chain,” said Emmanuel Kayigi commissioner for Domestic Taxes at RRA. The upgrade of the electronic billing machine was funded by the Korean government through Korea International Corporation Agency at a cost of Rwf2 billion ($2.5 million). The roll out of electronic billing machines will also be expanded while Tax Inspectors Without Borders will be hired to audit multinational companies. The VAT law requires all registered taxpayers in the country to...

President Yoweri Museveni has approved the borrowing of Ush10.3 trillion ($2.9 billion) for the construction of the standard gauge railway from the Malaba border with Kenya to Kampala in the clearest signal yet that the regional infrastructure project is back on track. Uncertainty had hit the project after Uganda said it was considering building a railway through Tanzania after failing to get assurances from Kenya that it would extend the Mombasa-Nairobi line to Malaba. Kenya has since committed that its line, whose first phase to Nairobi was competed in June, will be extended in phases to Naivasha, Kisumu and eventually Malaba. The approval for the borrowing comes amid indications that China had agreed to fund the line only if it was a joint project between governments including Rwanda, the last stop of the Northern Corridor under the East Africa Railway Masterplan. Another line in the Central Corridor from Dar es Salaam to Burundi and Rwanda would complete the circuit meant to boost trade in the region. In a letter to parliament last month, President Museveni said the loan, which is Ush2.1 trillion ($600 million) more than the $2.3 billion contained in the feasibility study, should be on condition that concerns over the technical specifications and project costs raised by the Parliamentary Committee on Infrastructure in February would be addressed. The Treasury said the money included the costs of arranging for the loan from China Exim Bank, such as insurance, even as State Minister for Planning David Bahati suggested the higher amount could be the result of a...

Growth in Burundi is low, due to the low productivity of the subsistence agriculture on which the majority of the population depends, reveals the analysis presented on 13 July in Bujumbura by the United Nations Economic Commission for Africa (UNECA). This relative resilience of the Burundian economy is due to the fact that the Burundian economy relies mainly on the subsistence agriculture, reveals to UNECA analysis.On the occasion of the publication of the Burundi profile, the UNECA, which conducted an analysis on economic and social performance in Burundi with a focus on recent developments after the socio-economic crisis of 2015, reported that the country’s growth rate was -3.9% in 2015, but is expected to reach 2% by 2017. Andrew Mold, Acting Director of the UNECA Sub-regional Office for East Africa, shows that Burundi’s major challenge is the lack of structural transformation. Per capita agricultural production has decreased by 28% since 1982 as the population increased, UNECA report shows. “Yields in Burundi are 20 to 40 percent lower than in neighboring countries. Erosion, land pressure, the impact of climate change, land conflicts and lack of modern inputs are the main obstacles to agricultural modernization, “says Mold. For him, agricultural modernization is necessary for the reduction of poverty and acceleration of structural transformation. The UNECA country profiles (CPs) were launched in April 2017, in Dakar-Senegal in the Conference of African Ministers of Finance, Economic and Development Planning. CPs are key data and forecasting tools designed to provide African decision-makers with an independent...

Contractors are putting final touches on four cross-border markets expected to be inaugurated by the end of this month. In a recent interview with The New Times, François Kanimba, the Minister for Trade, Industry and EAC Affairs (MINEACOM) said that three markets; namely Cyanika (in Burera District) along the Ugandan border, Karongi and Rusizi I markets along the DR Congo border are in the final stages of completion. Also Construction works on (Rubavu) cross-border market is at 70 per cent and will be completed by the end of this year, according to Kanimba. Kanimba said that the idea to construct the markets came after the government realised that informal cross-border traders were finding it difficult to do their business while some resorted to smuggling goods. In 2016, cross-border informal trade brought in $150 million up from $80 million back in 2010 and there is a hope that the markets will boost the trade according to the minister. It is estimated that between 70-80 per cent of cross-border traders are women mainly in informal trade, with 90 per cent of the women traders relying on cross-border trade as their sole source of income. “We are planning to inaugurate Cyanika and Karongi markets this month (July), part of Rusizi I market can also start operating even though we want to expand it to avail more space for traders,” Kanimba explained. He added that the Rusizi market was constructed by members of the business community in the district. Cyanika and Karongi cross-border markets...

Nairobi. Tanzania and Kenya have held successful talks that will see the lifting of restrictions on imports from either country. The Minister of Foreign Affairs and East African Cooperation, Dr Augustine Mahiga, announced the decision in Nairobi yesterday following discussions between President John Magufuli and his Kenyan counterpart, Mr Uhuru Kenyatta. As a result, Kenya will lift the ban on wheat flour and gas imports from Tanzania, which, in turn, will remove restrictions on milk and cigarettes from Kenya. Additionally, the two countries will form a standing joint technical committee to address various issues. Diplomatic and trade relations between Kenya and Tanzania had been strained for some time, with both imposing tit-for-tat bans on each other’s exports. The ban on Tanzania’s imports was ostensibly attributed to safety and quality concerns, and Tanzania reciprocated by slapping a ban on Kenyan tyres, margarine and fermented milk. Tanzania also banned overland transport of maize from Zambia into Kenya, which is experiencing one of the severest shortages of the staple. The trade tiff is strange, given the huge volumes of goods flowing between the two countries and the potential harm that trade disputes could cause. Industry, Trade and Investment Permanent Secretary Adolf Mkenda had a few weeks ago said no action had been forthcoming from Nairobi since February and June when the two countries agreed that the ban be lifted. Kenya argued that wheat imports from Tanzania were outside the common external tariff benchmarks to allow free entry into the country. But Prof Mkenda...

The recently appointed UK trade envoy to Uganda, Mr Lord Dolar Popat, has called on Ugandan businesses to partner with UK firms based in Uganda to strengthen trade relations between the two countries. Speaking at the British Business Group Trade Forum at the Kampala Serena Hotel on Thursday, Lord Popat, said their recent appointment by the British prime minister shows the substantial commercial and investment opportunities between UK and Africa and the key to its success is having stable and secure markets. “My appointment reflects the growing importance of the Ugandan market and I will aim to strengthen the bilateral trade relationship,” he said. He added that with the expanded range of products aimed at ensuring that UK companies remain competitive, countries such as Uganda stand to benefit from addressing their infrastructure needs from the UK export credit agency. This is because increase in Chinese investments in Africa, is a clear opportunity for UK businesses which are long time partners in the development of major infrastructure projects given their engineering and consultancy expertise. He said UK firms are at the forefront of vital sectors in Uganda. Government’s take Mr Sam Batala, the assistant commissioner external trade at the Ministry of Trade advised Ugandan businesses to partner with UK businesses in Uganda and work together to facilitate transfer of knowledge and skills to produce high quality goods that can enter the UK market. “Uganda is an agricultural country and we have competitive advantage because of fertile soil, good climate and improved...