Government’s Gift to Exporters

Private Sector Foundation Uganda (PSFU) has since June 2005 been implementing the Second Private Sector Competitiveness Project (PSCP II). This is a 5 year World Bank – Government of Uganda project aimed at creating sustainable conditions for enterprise creation and growth. Under its three components – Developing infrastructure and financial services; Enhancing enterprise competitiveness; and Improving the business environment – the project’s various innovative activities are intended to increase value addition, support linkages between enterprises and improve skills for MSMEs. To make this happen, PSFU is working together with Uganda Investment Authority, Uganda Law Reform, Uganda Registration Services Bureau, Uganda National Bureau of Standards, and Ministry of Lands and Urban Development.
“A powerful, distinctive, and appealing national brand in case of the country or company brand, is one of the most valuable gift a government can give to its exporters. Today, branded exports are one of the most potent ways of building and sustaining company and subsequently national image.” The Business Branding Linkages (BBL) Programme is aimed at capturing more value from profit margins associated with branding and marketing.
The expected outcome is that our products will be differentiated from those of our competitors thus making it more difficult for them to compete for our customers. We expect to attract a higher price for our products. This will enable us to communicate with our products using consistent messages and build a positive image for our businesses and our nation.
How is the PSFU going to support this initiative? The program will identify sectors/ firms in the country suitable for branding or with potential to attract incremental benefits as a result of branding and assist them on a cost share basis by: (i) Hiring branding consultants to assist the firm/ sector undertake market analysis in international and regional markets and identify products, market segments where Ugandan producers could successfully penetrate. (ii) Developing branding strategies or campaign. (iii) Working with identified firms/ sectors to the creation of new brands/ sub brands and improve the quality and efficiency along the value chain in order for them to meet the required quality and quantity requirements. (iv) Providing support in respect of the brand related costs arising out of the recommended branding strategy i.e. advertising, marketing campaigns, design of materials/ packaging and creation of branding stories.
Eligibility is based on whether the applicant is privately-owned and is not fully or partially owned by Government; The applicant is carrying out business in the MSME sector with a potential for export to regional or international markets in any category apart from production of weapons, alcoholic beverages, tobacco and gambling; Companies are in compliance with tax and requirements; Cost share basis grants are up to a maximum of USD 100,000

© PSFU Exporters & Importers Directory 2008

The PSFU (Private Sector Foundation Uganda) & MTN Trade Facilitation Exhibition on Friday 27 June 2008 was, I must confess, an illustrious success though I came in late from Kampala Town around noon. With stalls on almost one half plus on the long ends of the North Western Exhibition Hall at Lugogo Show Grounds, a large area was set aside for listeners to sit and you could see that the exhibition was well attended. A minister from Rwanda was speaking when I made my entrance. An apology was made by the MC about the absence of one of the panelists who had to go to the airport earlier than scheduled for checking before a voyage out of the country that evening. I expected PSFU chairman James Mulwana to be there, but didn’t see him. Could he have been the one mentioned?

Anyway, after the minister, Richard Kamajugo a URA Commissioner [AC – Trade] on behalf of Allen Kagina started by conveying the Commissioner General’s remarks; personally I think she’s always brilliant and considerate to tax payers, you know, the aura of motherly love makes her great. I do not know much about her white predecessor but call Kagina the “Customs Mama”. Please don’t tell her daughter Mitchel that Aiko said so…Her words conveyed by Commissioner Kamajugo were worth writing home about, “Today, because of the technology, reengineering and a common East African customs understanding, consignments can be cleared within 24 hours unlike in the past which took many days... Customs is the branch of URA that handles exports and imports.”

Lunch (a package of chicken, salt, sausage, sumbi, tomato sauce, and irish) plus a drink were served to the tired listeners to woo them back from the stalls to hear more because the commissioner was not done yet. What else would you expect other than feeding all those present when these guys had made a lot of money from the sponsors and exhibitors? Richard’s subsequent presentation was about URA’s role in the export business. (For more details about his presentation, I would suggest that you check out URA’s website @ www.ugrevenue.com) All I could gather because of food in my mouth (I wasn’t prepared to write) was that some taxes had been waivered. The Most Interesting was the waiver of income tax on new agro-processing businesses 30 Kilometres outside Kampala in the new financial year which was just four days away on Tuesday. There was also a waiver on trucks that carry loads above 3.5 MT (Metric Tonnes) so buying such a truck in the new FY would be cheaper. The commissioner Richard Kamajugo even advised businessmen to replace their family saloon cars with an export truck if they so wished… Richard also mentioned the usual waivers of tax on exports such as hides and skins [yet in the past, no body was allowed to export them]. “Uganda gets her foreign exchange from exports. So without large amounts of foreign exchange, we cannot trade for imports with the foreigners. URA has come in to facilitate and promote exports…”

This was more of an export promotion exhibition. UCIFA Chairman Omar Kassim was also one of the speakers and said “UCIFA is always open (for exporters and importers)”. Sponsors (who were honored after the Rwandese minister’s speech) plus Advertisers included (in no distinguished order) PSFU, Barclays, SkyNet, uganda telecom; MTN, UIA (Uganda Investment Authority) alongside UEPB (Uganda Export Promotion Board); Stanbic Bank; Nine international embassies like Holland, UK, et cetera; South African Airways, UCIFA (Sitting at the stall was board member Lino Cries Icila and the Secretary to UCIFA’s Chairman)…Secretary General Jad Johnsons Tabule who is also the director of Freight Kargo Masters was in the crowd and so was Assistant Chairman Lawrence Ayebare who listened to the presenters; CMA (Capital Markets Authority); dfcu Bank (offering Land Loans between 5 and 75 Million UgX and other services); UPS & Daks Couriers; UFFA (Uganda Freight Forwarders Association) the second Clearing and Forwarding Association in Uganda; Tourism Uganda, UAP Insurance Company and other exhibitors not mentioned; Citi Bank Group put up their banner but were not present…

Below is the spirit of UCIFA’s role in the import and export business. As the foremost umbrella body of clearing and forwarding firms in Uganda, UCIFA is an intermediary between customs and importers or exporters. They carry out the necessary customs documentation and lodgments of entries. The body advises clients on customs requirements, laws, regulations and procedures. UCIFA updates clients on changes that occur from time to time. It facilitates import and export operations in the most efficient and cost effective manner. Also, it advises on the mode of transport & the facilities in transportation; liaises with Uganda Revenue Authority and other stakeholders in the facilitation of import and export business thus facilitating trade and tax collection.