Kampala, Tuesday, 31^st August 2021 - Private Sector Foundation Uganda (PSFU) commends Government’s efforts in addressing the concerns of traders revolving around the taxation on textiles and garments. Under the new policy, the tax rates of textiles were increased to 35 per cent as import duty from 25 per cent, and to $3.5 per kilo on the imported textiles.  

PSFU as the apex body of the private sector representing its members who include KACITA, Uganda Tailors Association, among others has held several engagements in a bid to resolve the concerns around the new tax policy. 

The Government of Uganda has positively responded, engaged with our members, and agreed to drop the taxation using the 3.5 dollars per kg and 3 dollars per kgs on garments and fabrics respectively on 90% of all imported textiles and garments. This is good progress, and we commend Government for their efforts in engaging with the private sector continuously to resolve the concerns of traders. Government has also released a list of items which comprises the 10% on which the new tax policy will be administered. The list is being reviewed by PSFU accordingly. 

“We are committed to support the traders in finding a common ground on the concerns raised. Therefore, we appeal to the traders to halt the planned peaceful demonstration to allow continued engagements to happen amicably.” Said Francis Kisirinya, Ag. Executive Director, PSFU. 

PSFU is committed to engaging with Government to ensure that an amicable & sustainable solution is achieved. Government has requested for a week to conclude and resolve this matter. 

Therefore, PSFU calls upon affected traders to suspend the planned demonstration to give a chance for negotiations to continue as the means to reach an amicable solution.

ENDS

Agriculture remains the mainstream in Uganda’s economy, accounting for over 24% of the Gross Domestic Product (GDP) and generating more than half of the country’s export earnings (54% IMF World Bank 2019). The sector employs over 70% of the working population which also provides the first employment for three quarters of those aged between 15 and 24 years (UBOS,2016). At the same time, agro-processing is the backbone of the manufacturing sector accounting for approximately 60% of its total output. Whereas agriculture has been identified as one of the key sectors that can generate wealth, with high employment potential, investment in the sector has remained low.

Currently, Agri-products exporters from Kenya and Uganda are faced with challenges related to non-tariff barriers (NTB’s). These are both domestic and foreign in nature, including certification, labelling, packaging, quality standards management, rules of origin and other NTB’s associated with foreign regulations (ICT 2018).

Its against that background, that the Ministry of Foreign Affairs through its Uganda High Commission in Kenya based in Nairobi and Uganda Consulate based in Mombasa in conjunction with Private Sector Foundation of Uganda and Kenya National Chamber of commerce have planned a two-day agri-business symposium on September, 8^th & 9^th 2021 in Mombasa under the theme: “Unlocking the Full Potential of Agribusiness to Enhance Export Performance for National Development."

For more details and information on how to participate visit the event website: 

https://agribusinessymposium.com/

August 20, 2021. Kampala- Private Sector Foundation Uganda (PSFU), engaged with Uganda Revenue Authority to discuss strategies, interventions and proposals how to widen the tax base. 

The business community recognizes that taxes are a vital form of Government revenue to enable it provides services and amenities that stimulate growth of the economy. The private sector is the biggest source of this Tax revenue; however, high tax rates limit enterprise growth.

COVID 19 has negatively impacted the business community with reduction in domestic consumption (BTI study June 2021), 67% of the MSMEs reporting decline in incomes and more than 1.1 million employees are reported to have lost jobs. Government has also been hit by increased public pressures, tax revenue deficits and rising debt levels. As a result, illicit trade is recorded to be on a high of 62% and 25% for beer and cigarettes respectively. This worsens the motive of formalization of the economy, instilling more pressure to our Tax to GDP ratio.

PSFU has developed the following cross-cutting areas which we believe and have studied as key guiding principles which if we implored can be used to increase the tax base, while supporting companies to survive COVID 19.

"Going forward, URA will have many engagements like this where we listen more and talk less. Listening has paid off. 365billion was collected last year from engaging taxpayers in discussions and negotiations, without going to court." Said Mr. John Musinguzi, Commissioner General, Uganda Revenue Authority.

  pdf Click here for more detailed information. (635 KB)

• PSFU, Mukwano to create 50,000 jobs across the agricultural value chain in 5 years
• Partnership worth UGX 26 Billion
• The Mastercard Foundation supports 3 million youth in Uganda with focus on 70% women

August 17, 2021. Kampala- Private Sector Foundation Uganda (PSFU), Uganda’s apex body for the private sector in Uganda, through its Lead Firm Structure Project supported by the Mastercard Foundation has partnered with Mukwano Industries Limited, a leading conglomerate in East and Central Africa and a major player in key business sectors covering manufacturing, agriculture, and logistics supply chain, to support youths and create 50,000 jobs across the agricultural value chain over a period of 5 years.

Speaking at the partnership launch held at the Mukwano Industries manufacturing plant in Industrial Area- Kampala, Simon Kasyate the Communications Programme Lead at the Mastercard Foundation Uganda said, “The Young Africa works Strategy in Uganda is a 10-year initiative by the Mastercard Foundation aiming to enable 3 million young Ugandans people, particularly young women, to access dignified and fulfiling work.

PSFU as the anchor implementing partner through the Lead Firm Structure Project will create a total of 300,000 work opportunities in sectors of; agriculture, manufacturing, tourism and hospitality, and construction & housing with 70% of the beneficiaries being young women. The Government has been instrumental in making this happen by creating a conducive environment for enterprise development.”

Francis Kisirinya, Acting Executive Director, PSFU added that- “Agriculture remains the backbone of Uganda’s economy and if there’s anything that has become more apparent as a result of the COVID-19 pandemic, it is that health and agriculture are key industries we need to focus on considering the demand and readily available market, which if strategically addressed will enable us do away with prevailing challenges such as youth unemployment. With the Lead Firm Structure Project, we are partnering with Lead firms in the agriculture, manufacturing, tourism and hospitality sectors to utilize the opportunity gaps identified across the value chain. We have so far on-boarded 17 out of 80 lead firms- Mukwano being the 17^th.  We are excited about the partnership with Mukwano Industries Limited because with this, we will be able to make measureable and lasting impact in Uganda. We call upon all firms with the potential to create dignified and fulfilling opportunities for the youth to join us in this initiative to build a sustainable future for our young people. I would also like to thank our partner, the Mastercard Foundation that has supported PSFU’s efforts in impacting the lives of young people of this country.”

Through the partnership, Mukwano Industries Limited as a Lead Firm will equip farmers with skills to train small scale farmers on Good Agronomic Practices (GAP) and Post-Harvest Handling Practices (PHH) through Identification and registration of Smallholder farmers (households) in to producer Organizations (groups) with support from Local government leaders and the already existing Mukwano extension service networks at parish levels.

Speaking on behalf of Mukwano Industries Limited, Tony Gadhoke the CEO Mukwano Industries Limited said, “Throughout the Mukwano Industries Limited agricultural value chain, there is a UGX 251 billion economic opportunity for the youth to tap into the supply chain within Uganda alone as producers, suppliers, and providers of different services in the supply chain including farmer mobilization and organization, farmer management and extension services, and financial service provision. Currently, Mukwano Industries Limited is only utilizing 40% of the available plant capacity due to inadequate Grain supply of Sunflower and Soybean. This means that over UGX175.5 billion in economic value, enough to employ millions of youth in this country, is lost every year in the agricultural supply chain which this partnership will rectify.”

This project will be implemented in areas of;  Amolatar, Oyam, Apac, Agago, Pader, Omoro, Alebtong, Kole and Lira districts.