Legislators on the Committee on Commissions, Statutory Authorities and State Enterprises have tasked the finance ministry to present documentation on the criteria used in granting bailouts to companies in financial crises.

According to the committee chairperson, Hon. Medard Sseggona, companies belonging to foreign investors have mostly benefitted from bailouts compared to companies belonging to Ugandan investors.

“What is the legal and policy framework on which you base to determine who should benefit from your bailouts and who should not? You are helping AYA but you are not helping Sembule who has invested in development of your technology and skills,” said Sseggona.

He raised the concern in a meeting between committee members and officials from the ministry on Friday, 28 June 2024.

The delegation appearing before the committee was led by finance minister, Hon. Matia Kasaija.

Ssegona also tasked the minister to present a schedule of all companies in which government has bought shares, and appraise the committee with details by Friday, 06 July 2024.

He cited companies including Atiak Sugar Factory, the Munyonyo Commonwealth Resort and ROKO Construction Limited.

“We want to know what we have injected, what the worth of our investment is in terms of shareholding, and our level of participation in managing these companies. We must be able to reap back our money,” Sseggona added.

Hon. Timothy Batuwa (FDC, Jinja South Division West) also tasked the minister to appraise the committee on the status of companies that receive tax waivers from government.

“On that list, let us have Bujagali Energy Limited. Year after year, they seek tax waivers and we want to know what benefit government has derived from this move,” Batuwa said.

Sseggona added that the ministry ought to show the monetary contribution of companies receiving tax waivers, to the economy over the last three years.

Hon. Nathan Itungo (Indep., Kashari South County) raised concern over selective release of funds, citing that some universities receive 100 per cent release of funds whereas others receive only 60 per cent by the close of the financial year.

“If you are releasing, release 70 per cent across the board. But if you give Makerere University 100 per cent and then you give Bunyoro University or Kabale University 55 per cent, that is not good,” Itungo said.

Kasaija told the committee that money for approved budgets is released on a timely basis, adding that the releases are based on the cash available.

On queries by the committee about URA’s inability to assess and collect taxes on gold exports, Kasaija clarified that in May 2024, the Minister for Energy and Mineral Development issued a statutory instrument imposing a levy US$200 per kilogramme of processed gold exported.

He added that the level of purity of gold exported was specified to be at 99.9 per cent.

“URA started the assessment and collection accordingly. From 01 July 2021 to 30 June 2023, a total of 65,135 kilogrammes of processed gold were exported and total tax assessed was Shs47.28 billion. Of this, Shs2.17 billion was paid, leaving Shs45.1 billion in outstanding tax arrears,” Kasaija said.

He added that for the period between 24 May 2024 and 27 June 2024, a total of 4,006 kilogrammes of refined gold was exported and taxes amounting to Shs3.114 billion were collected.

Distributed by APO Group on behalf of Parliament of the Republic of Uganda.

Uganda’s coffee industry has made a significant breakthrough in the Turkish market, with exports increasing by a remarkable 2,200% between 2019 and 2024. From a modest 2000 bags (120 tons) in 2019, coffee exports to Turkey surged to 44,000 bags (2,640 tons) in 2024. This impressive growth is attributed to the Uganda Mission in Turkey’s strategic shift in approaching investment, trade, and tourism. By focusing on Uganda’s major product that Turkey cannot easily substitute – coffee – the Mission successfully tapped into the Turkish market’s growing demand for high-quality coffee.

“Turkey offers a significant opportunity for Ugandan coffee exporters, with its large population and growing economy making it an attractive market,” said Counselor Julius Mwijutsya, in charge of Economic and Commercial Diplomacy at the Uganda Embassy in Ankara. He added: “Given Turkey’s economic potential and Uganda’s goal to expand its coffee exports, we concentrated on establishing a strong presence in the Turkish market. Our efforts yielded impressive results, with coffee exports from Uganda to Turkey increasing from 2000 bags in 2019 to 44,000 bags in 2023”. Ugandan coffee has gained popularity in Turkey due to its excellent intrinsic quality characteristics, with many coffees suitable for differentiated markets. In particular, there is a strong demand for Robusta coffees, especially Screen 18 and Screen 15, which Uganda can supply. The Uganda Embassy in Ankara has been actively promoting Ugandan coffee in Turkey and has participated in the Coffex International Coffee Exhibition in Istanbul.

Embassy’s efforts have helped raise awareness about Ugandan coffee and its unique characteristics. “Turkey’s tourism industry is particularly noteworthy, with cities like Istanbul and Antalya, attracting millions of visitors each year,” Counselor Mwijutsya noted. “In fact, Istanbul was the most visited city in the world in 2023, with over 20 million tourists, followed by London, Dubai, and Antalya.” The country’s coffee consumption has increased fourfold in the last 10 years, with per capita consumption standing at 1.7 kg in 2023. This significant increase in coffee exports to Turkey has substantial economic benefits for Uganda. Using the current market price in Uganda of 6000 shillings per kilogram, the value of these exports can be estimated, highlighting the significant economic benefits of the strategic partnership between Uganda and Turkey. “To put this achievement into perspective, let’s consider the volume and value of these exports. The 44,000 bags of coffee translate to approximately 2614 tonnes. Using the current market price in Uganda of 6000 shillings per kilogram, we can estimate the value of these exports. This calculation highlights the significant economic benefits of our strategic partnership with Turkey,” said Mwijutsya, who ends his tour of duty at the end of June, 2024. 

The potential revenue gains are substantial, with estimates suggesting that Uganda’s coffee exports to Turkey could reach USD 1.5 billion by 2025. This would not only boost Uganda’s economy but also solidify its position as a major player in the global coffee market. Mwijutsya also believes his successor, an experienced senior diplomat, will continue the progressive trend. “Our mission’s strategic plan is designed to ensure continuity and sustained progress in our economic and commercial diplomacy efforts. With dedicated professionals at the helm, I am assured that our collaboration with Turkey will flourish, driving growth and prosperity for both nations,” he said.  With the support of the Uganda Coffee Development Authority (UCDA) and the Ministry of Foreign Affairs, he believes Ugandan coffee can establish a strong presence in the Turkish market and contribute to the country’s economic growth.

Distributed by APO Group on behalf of The Republic of Uganda – Ministry of Foreign Affairs.

The Ministerial Monitoring Committee for Intergated Water Resources Management (IWRM) in West Africa brings together the ministers in charge of water resources from the 15 ECOWAS Member States for its 5th ordinary session, Friday, 28th June, 2024, in Abuja.

The Ministerial meeting follows the recently concluded 11th Ordinary Session of the Technical Advisory Committee (TAC), which addressed critical issues for promoting Integrated Water Resources Management (IWRM) and sustainable development in West Africa. The meeting covered topics such as the draft Directive on managing shared water resources in the region, the development of hydraulic infrastructures, the promotion of new transboundary basin organizations, the establishment of a West African Water Facility (Fund), and the Regional Initiative for the Development, Resilience, and Valorization of Water Resources (DREVE).

DREVE is an ambitious, innovative program led by ECOWAS and other West African regional integration organizations, notably WAEMU and CILSS, with financial support from the World Bank. Its implementation is expected to significantly enhance sustainable development in the region.

In his opening remarks, Mr. Sediko Douka, ECOWAS Commissioner for Infrastructure, Energy, and Digitalization, reaffirmed ECOWAS’s commitment to sub-regional cooperation, which is rooted in the shared political vision of all member states as expressed in the “Ouagadougou Declaration” of 1998. This declaration has successfully guided efforts in integrated water resources management for nearly three decades.

Mr. Douka drew an analogy between the water and energy sectors regarding access, highlighting it as one of the major challenges. He emphasized the need to expedite the implementation of tangible projects for water and sanitation access. Consequently, a regional program has been established to provide clean water to rural and peri-urban areas. “We are humbling relying on our technical and financial partners to support us in this process,” he said.

Before declaring the meeting open, Engr. Prof. Joseph Terlumun Utsev, Nigeria’s Honorable Minister, Water Resources&Sanitation, emphasized the need for unity among member states to achieve developmental growth and manage the sub-region’s water resources, both surface and underground. “There is a saying that ‘teamwork makes the dream work,’” he added, “and this can also be said about our sub-region.”

Engr. Utsey highlighted the abundance of water resources across the sub-region, noting that if properly harnessed and coordinated, these resources could serve as a cornerstone for developmental growth, positively impacting health, education, tourism, food security, and energy. However, he cautioned that a lack of proper coordination could lead to underdevelopment and conflict among countries, as activities of one country upstream could pose dangers to downstream nations.

“The sub-region has great potential, and by working together, we can tackle our challenges—from climate change, poverty, and unemployment to inequality and more,” he said.

Distributed by APO Group on behalf of Economic Community of West African States (ECOWAS).

Today, President Abdel Fattah El-Sisi met with the President of the European Commission, Mrs. Ursula von der Leyen, on the sidelines of the Egyptian-EU Investment Conference held in Cairo.

The Spokesman for the Presidency, Counselor Dr. Ahmed Fahmy, said the meeting underscored the depth and strength of Egyptian-European relations, recently elevated to the level of a strategic and comprehensive partnership. This reflects the significance Egypt and the European Union accord to enhancing their cooperation as a cornerstone for regional integration and stability. The investment conference marks the first milestone in implementing this partnership. The President of the European Commission affirmed that the conference underscores the shared interests between the two sides and the European Union’s commitment to supporting Egypt’s development and economic reform path.

The meeting touched on ways to confront the escalating regional challenges, particularly the developments in the Gaza Strip and their impact on regional security and stability. President El-Sisi emphasized the necessity of concerted international efforts to reach an immediate ceasefire and the urgent access to humanitarian aid in Gaza to avert the humanitarian catastrophe facing the Palestinian people. The President reiterated that Egypt warns of the expansion of the gravely escalating conflict and called on the international community to take serious and swift steps to prevent the region from sliding into a new and unprecedented cycle of conflict. Both sides agreed that achieving a comprehensive and just solution to the Palestinian issue based on the two-state solution and in accordance with international legitimacy resolutions remains the optimal path to ensure sustainable stability in the region.

Distributed by APO Group on behalf of Presidency of the Arab Republic of Egypt.