Josephine Nakato Kasacca, Lead Customer Experience and  Operations for FlexiPay said the new partnership reflects the bank’s commitment to support and enable customers to complete borderless financial transactions in a convenient, secure, quick, and affordable manner.

She said effective June 14, 2024 customers can use FlexiPay to send money to over 20 countries.

However, plans are to increase this number to 70 by the end of the year.

“In line with our purpose; Uganda is our home, we drive her growth, we believe that by helping as many people as possible meet their financial needs with innovative services, goes a long way in driving economic growth. FlexiPay is ideal platform for both sending and receiving payments and let me emphasize again, very affordable! I want to take this opportunity to call upon all of you to use it because there are dozens of unmatched benefits one cannot find on other similar platforms,” she said.

Some of the foreign countries Ugandans can receive money from include; Kenya, United Arab Emirates, United Kingdom, Qatar, Oman, United States, South Africa, France, Canada, Israel, South Korea, India, Germany, Ireland, Netherlands, Kuwait, Bahrain, ARE, Australia, Poland among others.

She disclosed that FlexiPay is very safe to use, because it uses mobile applications and systems based on advanced encryption and other security measures to protect the sensitive financial information and transactions of all users.

Julius Okwana, the Upesi Money Transfer Country Manager expressed excitement about the possibilities that the partnership will realize.

He said their company is committed to providing innovative solutions that simplify financial transactions.

Okwana  said coupled with FlexiPay’s rapidly increasing uptake in Uganda and Upesi’s extensive regional and global network, the partnership promises to make cross-border money transfers faster and more convenient without making unnecessary visits to banking halls.

“With the increasing demand for cross-border transactions in Uganda, this partnership between FlexiPay and Upesi is poised to revolutionize the way people send and receive money internationally. It is expected to drive financial inclusion and promote economic growth in the region.”Okwana said.

He assured users that all transactions are secured and protected from potential cyber threats.

As of 2023, there are estimated to be around two million Ugandans living, and working abroad. There are also a good number of Ugandans here, who are doing plenty of business with foreign companies.

The recent World Bank report indicates that a total amount of money remittances receive in Uganda on an annual basis is approximately $1.43 billion, that about shs5.32 trillion .

According to David Berno, the International Fund for Agricultural Development (IFAD) Head Remittance and Inclusive, remittances play a crucial role in reducing poverty and enhancing food security in developing countries.

“We are excited to be affiliated to this campaign because money remittances enable families to meet their basic needs, such as food, shelter, and education, and can also contribute to local economic growth through increased consumption and investment. Therefore by supporting money remittances, IFAD aims to promote financial inclusion, empower smallholder farmers and rural entrepreneurs, and ultimately contribute to sustainable development and poverty reduction.”

Last year, URSB removed at least 186,000 companies from the register for neglecting to submit returns.

After not filing returns for five years, the registrar of companies had initiated their removal.

However, in a notice dated June 11, URSB revealed that these companies can now apply for restoration on the register.

URSB emphasized that applications for reinstatement must be completed through the Online Business Registration System (OBRS) on their website by August 30, 2024.

“Companies desirous of being restored onto the register are required to apply to the registrar of companies by August 30, 2024,” URSB said in a notice.

Applicants have been instructed to create an account on OBRS and begin the data update process for their delisted company.

URSB cautioned that companies failing to request restoration by the deadline will be permanently deregistered, making their names available for use by others.

However, they will in the coming financial year dig deep into their pockets to have their favorite drink as the government slapped more taxes on beer.

Finance minister, Matia Kasaija on Thursday announced taxation measures targeting the alcohol industry, particularly imported brands of beer and wine. While some analysts had suggested that, the budget for the financial year 2024/25 was not too “tax laden” the minister slapped Shs 1,000 on each kilogram of powdered bear.
This alcohol exercise tax is likely to affect the final price of this type of beer. Powdered beer has recently been a beer of choice by some revelers in some of the top bars and clubs. Unlike the bottled beers on the market, the powder imported from countries like Germany instantly turns into beer once mixed with water.
The minister also announced an increase in excise duty on imported wines from 80 per cent or Shs 8,000 per litre to 100 per cent or Shs 10,000 whichever is the highest. Players in the breweries sector have in the past raised alarm about exercise duties on beer. Current beer made from malt has a 60 per cent duty or Shs 2,050 per liter, whichever is higher, opaque beer 12 per cent or Shs 150 per liter, whichever is higher.
In March, Uganda Breweries Limited (UBL) managing director, Andrew Kilonzo warned against the plans by the government to impose a 20 per cent tax increase on both locally manufactured and imported spirits. He revealed that Uganda’s exercise duties on spirits were twice higher than those in other East African countries. Kasaija did not mention new exercise duties on the spirits meaning that the old ones still stand.
Other taxes 
Bearing in mind that taxes form most of the collections to finance the budget, the minister announced Shs 100 on a liter of diesel and petrol. He also imposed excise duty on adhesives, grout, white cement, and lime. This according to the minister was s to align the tax treatment of these products with that of cement.
Mobile money withdrawals
When the new budget comes into effect, withdrawals of money from other platforms other than mobile, money will be subject to an excise duty at a rate of 0.5 per cent of the value of withdrawals. This will not apply to withdrawals from agent banking or banking halls. This measure is likely to hurt those who operate on electronic banking wallets.

Value Added Tax (VAT) 
To facilitate the growth of e-mobility and affordability of electric cars and motorcycles and protect the environment. Kasaija announced that the supply of electric motorcycles, vehicles manufactured or fabricated in Uganda, and their respective charging stations and batteries for electric motorbikes, charging stations, and related services are exempt from tax.
Taxing gifts from employers
The minister announced that starting next financial year, the provision of taxable goods/services by an employer to an employee would attract VAT. This issue generated debate in parliament. MPs reasoned that if a company for instance, produces cement and donates bags to its employees of cement for self-development, the gift would be subject to VAT.
Income tax 
The government will with effect from the next financial year investors from tax capital gains arising from the sale of holdings in private equity or venture capital funds regulated by the Capital Markets Authority. According to Kasaija, the intention is to incentivize private equity or venture capital investments in Uganda.
Tax holidays
The government will provide tax holidays on the income of a person who manufactures and fabricates electric motor vehicles, electric motorcycles, electric batteries, and electric vehicle charging equipment, as well as the income of a person who develops, establishes or operates a medical facility or hospital facility.

Some civil society actors have in the past warned the government against such blanket tax holidays saying they normally end up denying the country access to revenue.

Uganda Revenue Authority has indicated that the country loses about Shs 160 billion annually due to foregone corporate income tax mostly from multinational companies because of tax holidays.

”We have extended the waiver of penalties and interest on arrears outstanding by June 2023. This waiver will apply when the taxpayer pays between July and December 2024, and we have also introduced a 10 per cent withholding tax on commission paid to the banking agents and fintech agents (payment service providers),” said Kasaija.

Public debt
The minister reported that Uganda’s total public debt stood at Shs 93.38 trillion, equivalent to $24.69 billion. Of this amount, external debt was Shs 55.37 trillion equivalent to $14.64 billion while domestic debt was Shs 38.01 trillion equivalent to $10.05 billion. The public debt is projected at Shs 97.638 trillion, equivalent to $25.716 billion by 30th June 2024.

The minister reported that in nominal terms, Uganda’s public debt to GDP was estimated at 9 per cent in June 2023, and is projected to end at 47.9 per cent this financial year ending June 2024.

“This is below the 52.4 per cent threshold provided for in the Charter for Fiscal Responsibility for the financial year 2023/24, and less than 50 per cent of GDP government policy target for debt sustainability,” he said.

Kasaija noted that although Uganda’s debt has increased, it is still sustainable and the government is committed to keeping it sustainable.

“Most importantly, the money we have borrowed has been invested well and these investments have started to give good returns,” said the minister.

In a statement, CAA head of public affairs and communication Vianney Luggya said the emergency exercise is a simulation of an aircraft and how rescue efforts would be coordinated.

“The public should not be alarmed by the beehive of activities in and around the airport in relation to the exercise,” Mr Luggya said.

Comprehensive training and preparedness programs are critical to ensuring that all airport staff can respond effectively to emergencies.

Regular drills and simulations are conducted to keep personnel adept at executing emergency protocols.

In the high-stakes realm of aviation, the International Air Transport Authority (IATA) says effective emergency response is paramount.

Airline emergencies demand swift decision-making under pressure, often with limited resources and evolving conditions, it says.

Emergency simulation is done by replicating various scenarios whilst ensuring that all parties involved foster teamwork and enables managers to adapt and make calculated adjustments to manage crises effectively.

At many airports, it is often a cause of major concerns among travelers who are not aware of prior notice and run into fears of plane crash.

This significant shift comes as the licenses of the agencies that have traditionally bought coffee from Ugandan farmers will expire on December 31, 2024, and will not be renewed.

During a meeting with farmers in the Lwengo and Lyantonde districts, UCDA Barley Officer Wasswa Charles explained the upcoming changes.

“All the companies which export our coffee are not for Ugandans which means that all the profits which we have to gain are the ones who gain it and we praise them for being rich. The owner of Ibello is a German company which has the biggest estate in Africa. He knows what he got from coffee. It is on record that one kilogram of kase these companies take it at shs12,900  which makes three  dollars but they sell that kilogram at 75 dollars that is 260,000 shillings,” Wasswa said.

He also added that Ugandan coffee is mostly sold in Italy and Germany.

“This move will empower our farmers to improve their earnings and have more control over the quality and pricing of their coffee. We believe this will also enhance the overall quality of Ugandan coffee as farmers will be directly involved in every step of the export process.”

Coffee is a crucial commercial crop for Uganda, especially for those living in rural areas.

Despite Uganda’s significant coffee production, much of it has historically been sold through intermediary agencies. This change aims to improve transparency and ensure farmers receive fair compensation for their hard work.

Research indicates that Brazil remains the world’s largest coffee producer, with an annual production of 60 million bags but 45 bags out of 60 remains inside their country.

However, Brazil’s domestic retention of a significant portion of its coffee is believed to be contributing to rising coffee prices globally, including in Uganda.

Ethiopia is noted as Africa’s largest coffee producer, yet Uganda leads the continent in coffee exports, often at competitive prices. The new directive from UCDA aims to similarly boost Uganda’s coffee export potential.

Charles Wasswa emphasized that this transition will also support the growth of farmer cooperatives, facilitating better market access and higher quality standards. “Forming cooperatives will streamline the process, making it easier for our farmers to meet international market demands,” he stated.

Wasswa said that UCDA has already embarked on registering coffee farmers because in this new move the farmer who will not appear on a list will not be able to export his coffee. Farmers have expressed optimism about the new opportunities, though some concerns remain.

“We welcome this change, but producing high-quality coffee consistently is still a challenge,” said Abdallah Ssemakula, a local farmer from Katuulo village in Lwengo district. “We are still grappling with high prices of fertilizers and coffee, yet the insecticides on the market are still fake.”

Adam Kalanzi a farmer from Kalyamenvu village in Lwengo district also said that thieves do not allow them to produce good quality coffee berries.

“Sometimes we are forced to harvest unripe coffee berries because we are afraid of thieves who steal our coffee from gardens and still we get forces of packing coffee which does not dry well because thieves steal it from the compounds.”

Farmers also narrate that the country’s economy forces them to sell their coffee before the harvest time.

To address these challenges, UCDA, in collaboration with the St. Ludovic Foundation, has launched a campaign to educate farmers on modern coffee cultivation techniques.

This initiative aims to prevent issues such as pest infestations and ensure sustainable farming practices.

Additionally, government’s self-development projects like Emyooga and the Parish Development Model (PDM) will provide financial support to help farmers adapt to these new practices.

Currently, 15 major companies, including Ibello and Kyagalanyi, dominate Uganda’s coffee export market.

The SLB Faculty for the Future programme, launched in 2004, grants fellowships to women from developing and emerging economies to pursue PhD or post-doctoral research in Science, Technology, Engineering, and Mathematics (STEM) fields at leading universities worldwide. Mr Rubondo noted that several Ugandan women have already benefited from this support and appealed to SLB for increased assistance.

“The initiative has promoted gender equality and women’s emancipation in science and technology. We understand that about seven Ugandan women have benefited from the programme. We hope to see these numbers grow,” said Mr Rubondo.

Mr Pescarini highlighted SLB’s longstanding partnership with Uganda spanning over 18 years, marked by continuous investment, national capacity development, and innovative projects ensuring the nation’s energy security.

“We acknowledge the crucial role of energy in driving Uganda’s progress and believe that collaborative efforts and shared objectives can lead to significant advancements in shaping a sustainable energy future for Uganda, while also addressing broader developmental goals,” Mr Pescarini remarked.

Currently, SLB is contracted to undertake directional drilling tasks on the Tilenga Project and provide software solutions for various oil and gas players involved in Uganda’s oil project. Mr Pescarini and the SLB team expressed their eagerness to collaborate closely with the PAU, discussing initiatives and potential areas of cooperation, exchanging insights, and outlining a path for mutually beneficial growth.

By supporting STEM research for female scientists in emerging economies, SLB aims to enhance scientific and technological progress within the local communities and regions where selected candidates are awarded this programme. Since its inception in 2004, the SLB Faculty for the Future programme has benefitted 863 women from ninety countries, enabling them to pursue PhD and post-doctoral research in STEM disciplines at leading universities and research institutions outside their home countries.

The Finance Minister will later this week read the new budget to the public.

Addressing journalists on Sunday, Julius Mukunda, the executive director of CSBAG said the increase of the budget from shs52.7 trillion to shs72 trillion means more borrowing by government to be able to finance the budget which will have a great effect on the country and its citizens.

“This implies that 55.1% of the 2024/25 financial year budget will be financed by debt and 44.9% by domestic revenue.  Government plans to further increase debt by borrowing shs8.9 trillion domestically from commercial banks which move possess significant risks to private sector lending due to the heightened exposure of Uganda’s commercial bank assets to government debt and loans,” Mukunda said.

He noted that interest payments have returned to pre-pandemic levels after slump and are expected to increase to shs9.5 trillion from shs8.2 trillion while commitment fees from projects have surged by 44% to shs1112billion .

“These developments will compromise service delivery as a significant portion of the collected revenue goes to service debt. High interest payments on loans now consume a substantial portion of the budget and domestic revenues. The cost of servicing debt has placed Uganda in a situation of debt distress and heightened vulnerability to a debt crisis.”

Poor revenue spending

The CSBAG Executive Director said there is a poor revenue performance and limited absorption capacity which highlight a serious financial crisis for the government.

Mukunda explained that the shs2.1 trillion shortfall in revenue as of December 2023 , coupled with the shs1.8 trillion overspend in domestic borrowing paint a bleak picture for government’s financial management.

“The failure to collect sufficient revenue to meet targets not only puts a strain on the budget but also raises concerns about government’s ability to fund essential services and projects,” he said.

Mukunda added,” the low absorption rate of only 84% indicates inefficiencies in government’s spending processes. With shs2.3 trillion left unspent, it is clear that there are significant obstacles hindering the timely implementation of projects and utilization of allocated funds. This not only delays progress on critical infrastructure and development initiatives but also leads to a waste of taxpayers’ money.”

SEATINI Executive Director, Jane Nalunga said financial indiscipline characterized by overspending , unapproved and corruption scandals is another loophole in the country’s budget spend.

“There have been instances of irregular or unapproved expenditures such as the controversial service award to Parliamentary Commission of shs1.7 billion and the high profile corruption cases like the iron sheets scandal. Limited transparency and accountability in government spending and contracting processes have created an environment conducive to corruption,” Nalunga said.

She added,” Corruption and political interference have weakened key institutions, making it difficult to hold the corrupt accountable.”

Increase in domestic arrears

The SEATINI Executive Director said the 62% rise to shs7.6 trillion in domestic arrears is a worrying trend for the country.

Nalunga said it is worrying that government has only allocated shs200 billion to clear outstanding arrears which are in excess of shs7 trillion.

“While this is a drop in the ocean, it contradicts government’s strategy of promoting a private sector led economy. Delay in paying outstanding arrears affects the operations of man private sector businesses that supply the government, hindering their cash flows and limiting their growth, resulting in fewer job opportunities and lower tax revenue from both VAT and PAYE.’

The CSOs said that whereas government has increased the agro industrialization budget to shs1.6 trillion from the budget framework paper amount of shs1.2 trillion , this is still lower than that of financial year 2023/24 of shs1.8 trillion, implying a shs115.20billion.

“We also notice that the program is still heavily dependent on external financing. We implore government to consider adequate domestic financing of the agro industrialization program, especially on the component of extension services and post-harvest handling through supporting  farmers to improve food security, value addition and marketing of their agricultural produce,” said Agnes Kirabo, the Executive Director of the Food Rights Alliance.

Civil society asked government to restrain from abusing public finance management laws leading to leakage and wastage of public resources.

“We call for fiscal discipline , transparency and accountability  to ensure sustainable economic growth and development.”

One of the primary reasons for Uganda’s borrowing habit is its inability to generate enough revenue through taxation and other means. The government’s tax collection efforts have been thwarted by widespread corruption and tax evasion, leading to a significant revenue gap that can only be covered through borrowing.

However, Uganda has a long history of political instability and conflict, which has hindered the country’s ability to attract foreign investment and stimulate economic growth. The government has often resorted to borrowing to fund its military and security operations, further exacerbating its debt burden.

Additionally, Uganda’s reliance on foreign aid has contributed to its growing debt levels. Donor funding has been used to finance various development projects and programs, but the country has struggled to effectively manage these funds and ensure their sustainability.

Without addressing these underlying issues and implementing comprehensive economic reforms, Uganda will continue to rely on borrowing to finance its budget deficits and development initiatives. The cycle of debt will only perpetuate the country’s economic challenges and hinder its long-term growth and development prospects.

As the country’s economy grew, so did the need for a more efficient and secure way to conduct transactions. Cash transactions were prone to theft, fraud, and corruption, leading to a loss of trust in the financial system. The government recognized the need for a more modern and accessible financial system that would promote economic growth and financial inclusion for all Ugandans.

To address these challenges, the government introduced mobile money services, which allowed people to send and receive money securely using their mobile phones. This technology revolutionized the way people conducted financial transactions, making it easier for even the most remote communities to access banking services.

Additionally, the government introduced initiatives to promote digital payments and reduce the reliance on cash. This included providing incentives for businesses to accept digital payments, implementing electronic tax collection systems, and promoting financial education programs to increase awareness and adoption of digital financial services.

The benefits of a cashless economy soon became apparent, with increased efficiency, transparency, and financial inclusion for all Ugandans. People were able to save money, access credit, and conduct transactions more securely and efficiently. The government saw a reduction in corruption and an increase in tax revenues as more transactions were conducted through formal channels.

As a result, there is now a concerted effort to further promote a cashless economy in Uganda, to increase financial inclusion and drive economic growth for all citizens. By embracing digital financial services and reducing the reliance on cash, Uganda is paving the way for a more prosperous and transparent financial system that benefits everyone.

He emphasised that the implementation of this new system will ensure that all VAT taxpayers contribute their fair share of taxes.

He made the remarks while speaking before the Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) on Monday, regarding concerns raised in the December 2023 Auditor General’s report.

It should be recalled that the recent introduction of EFRIS caused disruptions in business operations in Kampala, prompting traders to close shops in protest against the system.

During the committee session, Busiro East MP Medard Sseggona questioned the Commissioner General about the negative impact of EFRIS on the business community and the ‘embarrassing’ standoff between President Yoweri Museveni and traders at Kololo.

“I know you have been grappling with the issue of Electronic Fiscal Receipting and Invoicing System (EFRIS) and you know how far it has stretched us including attracting a major standoff between URA and our major collection points, the traders,” Ssegona said.

In response, Musinguzi explained that the initial tough penalties associated with EFRIS enforcement led to resistance from traders.

“The penalties for enforcement were quite high, so irrespective of what you are trying to sell without the E-receipt, the penalty was Shs6M. So I think, the toughness in the penalty and the toughness in the enforcement campaign caused this,” Misinguzi said.

However, he said URA has since waived these penalties and shifted focus to educating and sensitising traders nationwide about EFRIS.

Musinguzi, also highlighted that opposition to EFRIS is not unique to Uganda, citing similar resistance in Tanzania and Rwanda when these countries implemented the system.

“We have also checked the trends of all countries that have adopted this technology, especially within our environment-the East African Community,” Musinguzi said.

“Tanzania has been using the same technology for more than 19years, Rwanda has been using the same system for more than 10years, even Kenya. When you are starting, there is always resistance, closure of businesses, there are standoffs, but as we explain and engage home, people understand that this system is good for them, it is good for the Government.”