By Nancy Emily Nagujja.
On 30th June 2021, H.E Yoweri Kaguta hosted the 2nd Bi-annual Private Sector CEO Forum organized by the Presidential CEO Forum in Ntungamo district. The Forum run under the theme: Positioning the Private Sector for New Markets and Business Opportunities for Sustainability and thriving economies in the Region and the African Continent.
The Private Sector Forum’s major objective was to highlight the need for strategic positioning of Uganda’s Private Sector for new markets and business opportunities that can foster economic transformation. As well as identifying opportunities and challenges emerging within the new markets and develop strategies for maximum benefit and access.
The Event was moderated by PCF Board Member and CEO DFCU Mr. Mathias Katamba.
KEY REMARKS HIGHLIGHTS.
- BRENDA TIBAMWENDA
- We have has a series of stakeholder engagements under the theme “Innovation drives economic growth” that have include; A n engagement on Private Equity with Private Sector CEOs, A stakeholder engagement with The Prime Minister, A Visit channeled towards Value addition recognition at Agaliawamu Agri-business training Association, a visit to Kiira Motors Corporation, An engagement on Chogm Rwanda 2022,An engagement at Sino-Mbale Industrial Park on 25th June, 2022, Stakeholder engagement participation at the Expo 2020 Dubai on 3rd October 2021 and A Visit to The Uganda Industrial Research Institute on 25th June 2022.
- We are pleased to have been granted the opportunity to host a bi-annual Forum.
- I would like to thank H.E Yoweri Kaguta Museveni for the support towards ensuring that the PCF’s mandate continues to be manifested.
CHAIRMAN- MS BABRA MULWANA
- On behalf of The Presidential CEO Forum I wish to extend our utmost appreciation for hosting us today.
- The success of PCF is due to H.E’s commitment towards officiating and supporting the Forum to stand up to its mandate. This support has been very influential in contributing to our motivation.
- As our Mission is to promote, harness and popularize private sector involvement in providing a platform that advocates for appropriate legislation, practices and policies that eliminate bottlenecks to economic development we shall continue to ensure we support whatever it takes so the Private Sector can thrive.
- Today’s Forum discussions will be guided by the following sub themes that include: New market opportunities, The Oil and Gas Sector ad its opportunities, The African Continental Free Trade Area (AFCFTA), and Private Equity.
- We need to develop a roadmap of positioning Uganda in the new DRC market, building an able Private Equity Private Sector, and engaging other key players that could help in uplifting the economy of the country.
- The Office of the Prime Minister has been very supportive and we also wish ti appreciate PSST represented by Hon. Ramadan Ggoobi , Permanent Secretary for The Ministry of Finance, Planning and Economic Development .
- I would like to thank H.E Yoweri Kaguta Museveni for the support from his office through the State House Coordinator Ms. Irene Birungi Mugisha, this wouldn’t have been possible without her.
MR.ERNEST RUBUNDO- EXECUTIVE DIRECTOR –PRETROLEUM AUTHORITY OF UGANDA.
- The Oil and Gas Sector in Uganda is headed by the Public Sector that include; The Ministry of Energy and Mineral Development responsible for Policy Formulation, Investment opportunities and licensing, The Petroleum Authority of Uganda responsible for regulating and monitoring Upstream and midstream sub-sectors and ensuring compliance of petroleum operations. And The National Oil Company responsible for moving forward he country’s commercial interests, and creating joint ventures across the Petroleum Value Chain.
- We have had a number of Investors that the country has been able to attract in 4 Categories that include; Investors investing in Oil Exploration and Appraisal like Amour Energy, Ranto Petroleum, and UNOC. The Investors interested in Development and Production like Total Energies, CNOC and UNOC. Investors interested in transportation i.e.; Total Energies, UNOC and CNOOC.
- The Projects in the Oil and Gas Sector include; 2 Petroleum Productions Projects and 1 Oil Export Refinery Project. Some of these projects include the Tilenga Project worth 4-5 Billion Us Dollars, the King Fisher Project worth 2-3 Billion US Dollars, and the East African Crude Oil Pipeline worth 3-4 Billion US Dollars.
- The Karuma Project is estimated to be worth 1.6 Billion Dollars, all these projects are happening at the same time which is a great opportunity for Uganda.
- In February 2022, these investors agreed to invest close to 15-17 Billion Dollars, this is expected to have a great impact on Uganda’s economy in the next 3 years.
- The objectives of Uganda’s participation in National Content include; achieving in-country value creation and retention while ensuring competitiveness, efficiency and effectiveness, Developing of in-country human capital development in the oil and gas related disciplines as well as developing the competitiveness of Ugandan enterprises to supply the Oil and Gas Sector.
- As a regulator we are doing a lot like ensuring monitor recruitment of expatriate- nationalization plan taken over by Ugandans, Procurement processes and registration of suppliers on the national database, and focus on technology and transfer through joint ventures.
- PENINAH AHEBWA (PAU)
- Out of the 15 Billion expected to come from the Oil and Gas sector, 40% is expected to be retained in the Ugandan economy.
- There are a number of opportunities the Oil and Gas sector i.e.; Employment opportunities for Ugandans, Skills development, utilization of Ugandan goods and services and Enterprise development and technology transfer.
- 2022 marks the commitment of a period of 3-4 years of intense infrastructure development in preparation for first oil, which is expected in 2025.
- Government is doing a lot to enhance Private Sector participation like ensuring employment opportunities for Ugandans, skills development and training of Ugandans, enterprise development, utilization of Ugandan goods and services and technology and knowledge transfer.
- The key drivers for the national content include; different tiers or levels of opportunities over 141 contracts at tier and 141 times 3 over tier 2 and 3. Construction Phase for the next 3 to 4 years and more investment for the following 25 years post construction phase. 11,000 to 15,000 pax in camps, over 100,000 people in the operation areas doing activities involved in oil and gas. Over 1 million people moving within the Albertine Graben during the construction phase of the oil and gas projects, New Exploration projects between 2018-2024 and necessary infrastructure in places like the airport, Roads and Power.
- Some of the challenges Ugandan are facing with tapping into the Oil and Gas Sector include; financing, technical capacity and international certification.
- Linkages with other sectors of the economy are expected to be worth approximately USD 8 BILLION.
- Uganda’s Oil and Gas Sector is continuing to grow with exploration, development and commercialization projects which are bringing enormous opportunities to benefit Ugandans and the Ugandan economy.
DR EDWARD ISINGOMA
- Private Equity is the alternative source of financing for the Private Sector.
- There are a number of required reforms we believe Private Sector would appreciate if supported by the Public Sector.
- There are 4 key enabling areas for implementation and reforming the Private sector that include; Registration framework, Taxation, Domestic Capital building and technical support and Public awareness.
- Benefits of implementing proposed reform areas include; increased mobilization of domestic savings, increased mobilization of foreign savings. Boosting availability of hard currencies, reducing costs of reserve currency management, jobs realized from domestic management of investments and from investments made. Government through UDC can establish a Private Equity Fund as per Section.28 that seeks to establish an industrial and economic development Fund (IEDF)
- JOSEPH MUVAWALA- Executive Director National Planning Authority and PCF Board Member.
- The needs of the Ugandan economy have been growing overtime in term of population growth and service delivery requirements. However this has not been matched with a corresponding revenue based growth.
- There is need to expand the capacity of the economy through positioning Uganda in new markets such as DRC and South Sudan.
- Currently Uganda is the 2nd largest exporter to DRC after Rwanda and it is important that she positions herself to take advantage of the market.
- The market is a critical factor of production which can render other factors irrelevant without it.
- Key Issues included; Under Security: Insecurity and perceived insecurity deter the private sector from exporting directly to DRC, forcing reliance on Congolese Traders traveling to Uganda, the proposed strategy is to establish a sovereign export credit Agency (SECA) under MOFPED to provide Export Insurance to mitigate the market risk. Allocate fund for Trade Security to support businesses moving in convoys with UDF, and developing special Export Incentives for companies that export into the DRC such as reduction in tax.
- Under Infrastructure is; Road networks into the DRC that are largely dilapidated with some sections impassable increasing the time and cost of doing business (Cargo spends over a month in transit) the proposed strategies include; Upgrade the 866 Km FortPortal-Kissangani road to a highway with a toll earning returns for both Government while also providing a key artery to the transportation of goods, Construct Nebbi Construct: Nebbi-Goli-Mahagi-Bunia (190Km); Bunia-Bogoro-Kasenyi (55Km); Rwebisengo-Budiba-Buguma-Nyiyapandam incl. Budiaba Bridge across River Semuliki (49Km). And Build the Standard Gauge Railway (SGR).
- Still under Infrastructure and Power the Issue is Uganda’s power generation is set to exceed demand which presents a challenge of deemed energy.- Given the surplus we can export more. The Proposed Strategy is to Rehabilitate and expand the distribution and transmission networks and Export power to DRC and Tanzania to boost revenue earnings from energy. This would reduce the amount of deemed energy.
- Under Infrastructure still in the section of Air and Water; Inadequate air infrastructure to transport perishable products such as food items like milk, meat and vegetables. The Proposed Strategy is Expand the capacity for both Uganda Airlines and Uganda Air Cargo with a focus on Cargo. Uganda Air Cargo can invest in larger airliners or lease cargo aircrafts at a cost between $150,000 and $250,000 to support bulk haulage of Cargo from Uganda to DRC and Tanzania major towns.
- On the Issue of River Congo’s potential is still largely untapped in terms of cargo capacity by vessels, the proposed strategy is The GoU through URC should partner with DRC to invest in bigger Water Vessels on River Congo.
- Under Trade into the DRC is currently dominated by traders from Congo who travel to Kampala for what they need with access of items from China and Kenya at the expense of Ugandan Products, we propose that there is Construction of border infrastructure through PPPs such as Warehousing, One Stop Border Posts and support services like banks. And Allocation border land to the private sector.
- On the issue of Border migration, security, tax and health checks/ requirements pose unnecessary barriers and restrict effective trade, we propose we Formalize bilateral agreement between Uganda and DRC, Tanzania and South Sudan to mutually remove Visa entry and other border restrictions. Prioritize security along major routes and near the crossing points in the short term.
- Under Limited leverage on ICT/ Digital Technology there is an issue of DRC is heavily underserved by communication technologies. For instance: Mobile penetration is hardly 45%, internet under 10%, limited use of Radio and TV. In South Sudan, nearly 80% of the people reside in rural areas with limited access to interest and mobile services. We propose that Government should start leveraging UBC to access infrastructure in Eastern Congo. Government through Uganda Telecoms Limited could be linked to Simi Mobile to deliver mobile phone and internet connectivity services.
- The Presidential CEO Forum in collaboration with National Planning Authority, Uganda Manufacturers Association, Federation of Uganda Employers, Uganda Export Promotion Board and Ministry of Finance Planning and Economic Development believe that the key issues presented earlier should be prioritized for redress.
- Implementation of the proposed strategies will provide Uganda with an opportunity to strategically tap into the available markets – off-taking Ugandan products such as agricultural commodities.
- Access to markets is key indicator to enhancing Social Economic Transformation as well as register the success story of the Parish Development Model. RUTH BIYINZIKA, PCF BOARD MEMBER, CHAIRMAN ITC COUNCIL
- I believe KACCITA can ably be traders of Ugandan products across the continental if given your support Your Excellence.
- Distribution is quite expensive as it is so we propose that a special fund is created for traders. Some of them have been facing challenges of being asked for letters of credit, and advances which becomes very expensive for them.
- We request that you support budget inclusion for commercial ties in Uganda (Commercial attachés) so they can be facilitated as they carry on Trade across the Continent and East Africa.
- In the sector of Education we propose that our graduates are trained in different languages of Africa like Portuguese and French.
- We need to improve and create more opportunities for Uganda to be a one-stop business Center. For example the Kiira Vehicle plant can be made more efficient.
HON. MATIA KASAIJA- Minister for the Ministry for Trade Industry and Cooperatives.
- Thanks H.E for hosting the Presidential CEO Forum 2nd Bi-annual Private Sector Forum.
- We need to finance local actors, for the funds they have are not enough but we can continue to help them through empowering The Ugand Development Bank.
- On the Issue of Road and Power Transmission to DRC, we already started on this and we need to continue so it can be greatly positively impactful on Uganda’s economy.
- We have total confidence in the Private Sector. Let’s continue working=ng together to uplift the Sector.
PRIME MINISTER-HON. ROBINAH NABBANJA
- I would like to welcome H.E back from CHOGM in Rwanda-Kigali, the warm reception you received is evidence of the high regard from the whole world.
- The Parish Development Model H.E rolled out in February in Kibuku is still on going across the country. Your Ministers and Members of Parliament are largely championing the spread of sensitization and educating people about this game changer.
- I have personally been to 15 districts sensitizing people about the Parish Development Model.
- Our people are excited to put money in their pockets. And this is a key to fighting poverty in the country.
- When our people become productive, we shall have a problem of markets.
- Your Excellence we have a complaint of high electricity tariffs from some individuals that are struggling to make ends meet especially these industries that started on their own.
- Thank you H.E Yoweri Kaguta Museveni for gracing and officiating the PCF Forum, it is a very good forum, if we utilize it, the Sky will be the limit.
- The Parish Development Model and Private Sector should play a huge role in ensuring our people get out of poverty.
- In the UAE Delegation during the Dubai Expo 2020, we attracted close to 7 companies that are willing ti invest in various sectors in the country.
- The market in the DRC will help us market our products that will come as a result of the yields from The Parish Development Model.
H.E YOWERI KAGUTA MUSEVENI
- When the NRM government came into power, one of our major 10 points program was importance of the Private Sector for the economy to grow.
- In 1970 Obote confiscated private companies which was wrong, these private companies do government work at a cheaper work.
- By 1970 when the system collapsed the system was small, it was a typical enclave/ island of modernity surrounded by a sea of under development and that island of 1970-71 was characterized as the economy of the 3 C’s –Copper, Cotton and Coffee and the 3T’s-Tobacco, Tourism and Tea.
- In 1969- there was 4% homesteads in the money economy and 96% worked for a subsistence. Even when the economy was supposed to be good when we came we were clear about this. We need to restore the enclave collapsed.
- Our goal is to restore the small island of modernity, expand and diversify it.
- In 2011 the subsistence homesteads were 68% from 96%-68% outside the money economy.
- In 2018, we had 61% Ugandan in the money economy and 39% in the subsistence homesteads.
- The Parish Development Model is focusing on the 39% subsistence homesteads to ensure they join the money economy.
- The main problem before was that the leaders that confused leading with carrying people on their heads. Leading simply means showing the way. The PDM is looking at two parts; small-scale land holders and medium and large-scale holders.
- E Yoweri Kaguta Museveni agreed with the key ideas highlighted by the Presidential CEO Forum like ;embracing the new markets in the Democratic Republic of Congo (DRC),Uganda has a chance to export as many agricultural products to Congo since there agricultural sector isn’t quite as developed as ours. “I am happy you have seen the market in Congo, what we need to do is address the barriers that may stop us from tapping into this market,” Museveni said. He appealed to the Permanent Secretary Hon Ramadan Ggoobi to work hand in hand with Hon. Mwebesa Francis, Minister for Ministry of Trade, Industry and Cooperatives look into the areas that PCF has mentioned in this engagement that include: protection of local markets, looking into finding exporters cheap finance through the Uganda Development Bank. For the Oil and Gas Sector that is now thriving, they need to ensure they have the funds to explore Uganda’s next economy changer, addressing the issues of getting self-made industries cheaper power, the Petroleum Authority of Uganda focusing on joint ventures to help with the challenge of technical capacity , creating an Export Insurance Credit fund for exporters of Ugandan products, working with the DRC to build Toll Roads for easy transportation of exports, increasing the capacity of Air cargo planes, making border point checks faster to improve transportation of exports, supporting UB to ably do larger broadcast in the neighboring countries like DRC and supporting KACCITA.
- We must tax these imports from these countries and only exempt products from the East African Community. Government seeks to restore the enclave economy with a good number of Ugandans in the money economy.
- The Parish Development Model has two parts; smallholder, and medium and large-scale farmers. For a small-scale holder of 4 acres and less, we are saying select enterprises you can do a small-scale agriculture and be able to generate income. We have identified for these farmers for instance if they have 4 acres of land they can grow crops like: coffee they can plant on one acre, maize on one acre, fruits i.e.; oranges, mangoes/ pineapples or apples, grapes, strawberries on the other acre, pasture for zero grazing on the 3rd acre and food crops on the forth acre as they practice backyard rearing of either poultry for eggs or piggery. We believe Ugandans can use this small land to get out of poverty. Uganda could take advantage