Kampala, Tuesday, 6^th October 2020 - Private Sector Foundation Uganda together with its partners have today launched a campaign dubbed “Tugobe Corona. Wear A Mask.”

The campaign is aimed at sensitizing and creating awareness among Ugandans to share information on the benefits of wearing a mask correctly at all times. This campaign will run for a month across the Country, and roll out starts today in Kampala. The campaign messages will run through electronic media, social media, and outdoor initiatives among others.

PSFU has been working closely with Ministry of Health and the National Task force on COVID 19 over the last couple of months and the key information is that we now have entered phase 4 of this pandemic. The virus is no longer at the entry points and has now spread into communities.

COVID-19 remains a big challenge for all of us. The number of cases and deaths are on the rise and we would like everyone to reflect on this disease. Once you are diagnosed with the disease, you are isolated, and left in the hands of medical practitioners. In the unfortunate event that you pass away, you will not be buried by your relatives. COVID-19 is threatening and taking lives. This pandemic has affected so many Countries, and many people have lost their lives across the globe.

“We urge Ugandans to take personal responsibility and strictly WEAR A MASK as a primary shield at all times. Each time you do not wear a mask, you put your life and that of your family, friends, and work mates at risk. Let’s do this together, and this way we shall remain safe, alive and continue normally with our businesses.” Emphasised Hon. Elly Karuhanga, Chairman PSFU

PSFU is proud to partner with MasterCard Foundation, SafeBoda, KACITA, PRAU, Civil society, religious leaders, and our esteemed members on this campaign, and looks forward to collective achievements towards mitigating and ending the spread of Corona Virus in Uganda

This campaign affirms PSFU’s commitment to support business sustainability and competitiveness, as we compliment Government’s efforts towards averting the rapid spread of the COVID-19 disease.

ENDS

The COVID-19 pandemic has already unleased substantial economic damage word-over. Economic growth has been slowed substantially by 2%-3% in Uganda. This is the same world over. The impact on poverty is even greater. We already know that 2.5m people are estimated to have slipped back to poverty due to COVID-19. Employment is also suffering greatly with layoffs affecting lower cadre staff mostly the unskilled.

1. GDP, FY 2019/20 was estimated at 138,283 billion in nominal terms, reflecting a 3.1% growth in FY 2019/20, which is lower than 6.8% growth registered in FY 2018/19 and lower than the projected growth rate of 6.0% during the Budget Framework Paper (BFP) preparation time which is adjusted to 2-3%.
2. The main driver of the dampening in economic activity is the triple effect of the COVID-19 pandemic, locust invasion and flooding on the economy.
3. Agriculture grew by 2%, lower than 5.3% in FY 2018/19. The services sector has grown by 3.6% compared to 5.7% in 2018/19, while growth in the Industry sector is estimated to have slowed to 2.3% from 10.1% in FY2018/19.
4. Services sub-sectors are estimated to have grown as follows; trade and repairs (-1.6 percent compared to 4.9 percent in FY 2018/19), transport (-1.5% compared to 2.2% in FY 2018/19), accommodation and food services (-7.0% compared to 3.0% in FY 2018/19)
5. Growth in Private Sector Credit (PSC) slowed gradually in FY 2019/20 relative to the growth registered in FY 2018/19. This was due to a drop in business activity, worsening asset quality reflected by a pickup in NPLs (from 4%-10%).
6. Export revenues increased by 1.8% to US$3,947.2 million in the year to March 2020 from US$3,877.2 million in the year to March 2019. This was due to higher earnings from the export of gold, coffee, cotton, maize, and cocoa beans; albeit partially moderated by lower earnings from the export of tea, beans, base metals, cement, sugar, soap, and other pulses.
7. The lower export earnings are partially attributed to the impact of the closure of the border between Rwanda and Uganda for a large part of the period under review, which resulted in a 95.8 percent (US$190.7 million) decrease in export revenue from Rwanda during the year to March 2020, compared to the same period in the preceding year.
8. Imports increased by 3.6% (US$231.9 million) to US$6,690.1 million during the year to March 2020, from US$6,458.3 million in the year to March 2019, largely driven by higher private sector imports.
9. The fiscal deficit for FY2019/20 projected at 5% of GDP, 2.6% points higher than the deficit recorded in FY2018/19.
10. Estimated increase in poverty from 22% to 30% with 5 million people at risk of unemployment due to COVID 19.
11. Still 62% of population trapped in subsistence farming, yet poverty is highest, income inequality gap widens.
12. Budget UGX45 trillions Vs. 2-3% GDP growth & 15 Tr. Tax & 9% Interest Payment UGX 4 trillion

Private Sector Foundation Uganda wishes to applaud Government for the response to the COVID 19 pandemic both on the control/prevention and treatment on one part but also on the economic response. Actions done by Government such as deferrals of tax, moratorium on loans, instituting new financing lines at UDB and other response actions have prevented even severe economic damage.  One wonders what the current situation would have been, if Government never did anything. It is therefore in order to thank Government.

COVID-19: Investment Opportunities

Although the Covid-19 pandemic presents challenges for the economy, the country has also drawn several lessons and opportunities that inform the Government’s Economic Stimulus and Growth Strategy in implementation of the Budget in the medium term.

1. Acceleration of import substitution and export promotion strategy for a range of goods including medicines and other health products;
2. Agro-industrialization and light manufactures (based on Uganda’s comparative advantage);
3. Adding value to agricultural products and minerals;
4. Digitalization of many aspects of socio-economic activity to improve efficiency and reduce costs (e-Commerce; e-Government (including tele-conferencing, procurement and the dispensation of justice); e-Learning; robotic automation, artificial intelligence, cyber security and cloud computing; and digital marketing in tourism – this will entails fast-racking the Fourth Industrial Revolution (4IR);
5. Reform of urban transport to reduce congestion, starting with the Greater Kampala Metropolitan Area and eventually Regional Cities;

Download detailed statement here >>

The Private Sector Foundation Uganda (PSFU), Uganda’s apex body for the private sector in Uganda, is collaborating with Mastercard Foundation to implement immediate relief, recovery and resilience interventions under the COVID-19 PSFU Response Project. The intervention will complement the efforts of the Government of Uganda in controlling the spread of COVID-19, support the government to develop a Post COVID-19 Economic Recovery as well as a Growth Strategy. It will further augment the survival, recovery and resilience of enterprises impacted by the negative economic effects of COVID-19.

PSFU will procure and extend technical/consultancy services for an estimated 200 MSMEs affected by COVID-19 in selected thematic areas. In order to fast track implementation, PSFU invites interested companies to apply for services needed in thematic areas of interest.

Objective: The intervention’s ultimate goal is to contribute towards national efforts on safety and business recovery and resilience in the face of the COVID-19 Pandemic.

Specifically, program has the following strategic objectives;

• Increase capacity for prevention and testing of COVID-19 in Uganda.
• Enhance the Capacity of Institutions involved in health, quality and standards management.
• Support the recovery of enterprises from the negative economic effects of COVID-19 and increase their resilience to future shocks.
• Support government to develop and implement a post-COVID-19 Recovery and Growth Strategy.

Beneficiaries:  Micro, Small and Medium enterprises with particular emphasis to female owned or female led MSMEs.

Targeted Sectors: The support to MSMEs will be implemented in selected sectors which include;

• Agriculture
• Manufacturing
• Trade and allied services
• Tourism (through sector association)
• ICT
• Construction
• Health
• Education

Thematic Areas: The support to MSMEs will mainly focus on the following areas. For Example, under the export sector; interested companies will be assigned PSFU contracted service providers to help them develop and disseminate marketing tools such as product videos, product brochures including experiences. These will be distributed to market agents. In addition, placement will be made on various sites such as google, trip advisor to mention but a few. This effort is expected to help find new markets for Uganda companies to replace lost ones. The thematic areas include;

1. Marketing
2. Supply chain & sourcing
3. New/Alternative route to markets/Digitization
4. Product Development and Adaptation (Insurance, safety nets)
5. Repurposing of current business assets to new product/services
6. Standards and adaptation
7. Innovation and management support
8. Skilling

Eligibility for interested MSMEs:

• Be direct or indirect member of PSFU
• Be duly registered and operating under the laws of Uganda.
• Be operational for a minimum of two (2) years from the time of registration.
• Be privately owned and not partially owned or controlled by Government.
• Must be operating in one of the selected sectors; Agriculture, Tourism, Manufacturing, Construction, Trade and Allied services, Health and Education.
• Be able to demonstrate how COVID-19 has impacted your business

Requirements; Applicants must submit the following:

A fully-filled online application form (https://webportalapp.com/sp/psfu_mastercard_msmes_app)

• Proof of business registration.
• Details of physical business address/location.
• Evidence of negative impacts of COVID-19

Application and Selection Process:

 Stage 1: Submission of application forms. Applications will be assessed based on eligibility and overall fit for the COVID-19 Economic Recovery and Resilience Response Program.

Stage2: Successful applicants will be attached to the relevant consultants.

Stage 3: Implementation

Further information

• All requests for clarification must be sent via e-mail to This email address is being protected from spambots. You need JavaScript enabled to view it.
• Replies to all questions will be emailed no later than 2^nd October, 2020.
• All applicants will be notified of the outcome of the assessment no later than 1 month from the date of receipt of their applications.

 Application Submission: https://webportalapp.com/sp/psfu_mastercard_msmes_app

The deadline for the submission of online applications is 30^th October 2020 at 11:59pm East African Time (EAT). 

*Female owned and female led Lead Firms and MSMEs are encouraged to participate.

3^rd September 2020, Kampala. Government of Uganda, through the Ministry of Gender, Labour and Social Development with support from UNDP has drafted the National Work Based Learning Policy. The main purpose of the policy is to promote and strengthen workplace based learning for graduates and non-graduates for improved employability and productivity. 

PSFU chair for Skills, Health and Education, Ms. Julian Omalla facilitated a meeting with sector members represented by Datamine, MUBS, Icon, ISCP-U Makerere, and Ministry of Gender to discuss the draft policy and make recommendations to ensure that the policy delivers value. 

Some of the recommendations included; 

1. Time allocated for the internship/industrial attachments period is limited; the period given to students for internship is limited and this leaves them with no experience. Also the given the busy schedule of the experts at the training grounds, the interns are lack to touch of the experts.
2. Motivation of the youths/students to engage more in agriculture alongside the trained/ field of qualification. Since with agriculture there is more practical learning and can easily be practiced while at the same time engaging in other fields.
3. Developing a strategy on how to prepare the youths to acquire the skills. The policy ought to have a strategy developed on how to prepare them for skilling so as to set their minds for learning and implantation of the acquired skills.
4. Develop a rewarding mechanism for the skilled for instance setting a minimum wage of different levels of qualification. This can be a motivating factor for especially the informal sector into formalization.
5. Refresher trainings to the companies hosting the internship programmes and apprenticeship.
6. This policy should attract more PPPs to have a smooth implementation
7. Introduction of practical learning where students/learners have an interaction with the practical/industrial experts as per the field of operation not concentrating on the theoretical approach.
8. Alignment of the trainings to the job market.
9. Step up the standardization and enforcement of quality of work/product
10. Develop a training model on personality and character of the learner
11. Need for promotion of innovations and sophistication