Proposals

Members submitted a total of 517 issues through letters, phone calls and emails. UMA has since engaged the relevant MDAs to have the matters resolved. These ranged from;

1. 223 on tax related issues
2. 110 on standards
3. 55 on power reliability
4. 20 on local government infrastructure
5. 13 on work permits and visas
6. 9 on government procurement
7. 7 on municipality charges
8. 5 on government directives on measures to avert spread of pandemics

Achievement

All issues have been responded to with 80% receiving positive response.

The outstanding issues pending resolution relate to infrastructure especially in industrial area and local governments around the country.

Proposals

UMA made 17 tax policy proposals in both the domestic tax and customs tariff and 16 cross–cutting Budget proposals.

The tax measures were meant to provide relief while creating an environment for robust economic recovery, market access, income boost, and certainty for the manufacturing sector.

Achievement

The government lifted the lockdown in a phased manner and provided much of the market for the industrial output.

At least 70% of the proposals were adopted except for the tax proposals that were aimed at countering the escalating cost emanating from the global supply chain disruptions.

Proposals

UMA continued to advocate for the finalisation of the EAC CET and 35% for locally/ regionally available finished products

Achievement

The UMA position on CET as defined by a 4-band structure and a maximum rate of 35% was adopted as the official EAC alongside specific duties, marking the finalisation of the comprehensive review of the EAC CET.

UMA is a substantive member of the pre-budget committee and also sits on the Regional Task Force that reviews the CET.

UMA has consistently provided to government a list of sensitive products that has remained since 2018 to provide a leveled playing field for industry against imports 

The duty remission facility is still available for members and UMA is represented on the Committee to give members relevance

UMA sits on the National monitoring committee of NTBs that aims at proving leverage for members to have access to regional markets under the Common Market Protocol.

Proposals

UMA has continued to follow up on the implementation of the Presidential directive aimed at reducing power tariffs for all manufacturers to US Cents 5/KWH.

Achievement

1. UMA caused an amendment to the Electricity Act (2022) to resolve much of the power related cost issues most notably the direct power purchase.
2. ERA established both large and medium power tariff codes which now enables major power consumers to consume power at about US cents 8/KWH on average.
3. UMA received a trajectory of further tariff reduction from ERA. This spoke to maintaining status quo of the power tariff given the prevailing cost/sector consuming power at US 5 cents.
4. UMA negotiated a declining block tariff that allows large power consumers to further get lower power costs.
5. UMA has negotiated a direct power purchase agreement with the new regulation under review, in a bid to reduce the cost further for our members towards US 5 cents

Proposals

Amendment of the PPDA Law to provide regulations that would replace the reservation guidelines

UMA proposed 6 additional sectors to be considered under the reservation scheme from the original 3 (furniture, plastics, foam, steel, cement, and transformers)

Achievement

The PPDA Law was amended and a provision was embedded that would give impetus for a reservations regulation in place of the guideline.

UMA undertook a survey that informed the capacity that exists within the sectors of choice and shared it with PPDA. furniture and transformers were considered and incorporated into the scheme. awaiting other sectors

Government committed Ugx 140 bn for settlement of outstanding domestic arrears

The PPDA is undertaking to publish the 1st regulation to replace the reservation guidelines, this has delayed but we are mounting the necessary pressure to have it done.

The ERA has put in place a supplier’s database for the UMA members who can supply the (ESI) Electricity Supply Industry to register and be considered to supply

UMA members can also benefit from the PAU who have in place a supplier database for members who can supply to the petroleum sector to register.

Proposals

The passing of the NSSF Amendment Bill into a law providing for among others mid term access to savings, voluntary membership to NSSF among others.

Achievement

(i)Mid term savings access shall spur demand in the economy since it has potential to inject in the economy 900 Billion.

(ii) Government can for once access long term credit for institutions like UDB from NSSF. This is key for reduction of cost of capital given that NSSF has huge long- term deposits deployed everywhere in East Africa that should only be optimized for Uganda. Example, over UGX 5 trillion is invested in bonds in Kenya and Tanzania alone.

Proposals

Eminent revision of the PVOC Regulation (s) to address manufacturing concerns among other things

Achievement

UNBS is in advanced stages of causing the revision of the PVOC Regulation (s) to allow the streamlining of the exemption of UMA members from PVOC on importation of machinery, industrial in-puts/raw materials and spare parts on an annual basis.

The amendment takes into consideration annualised exemptions where a member of UMA can receive an exemption that would take a year as opposed to requesting exemption for every consignment.

Proposals

Leveraging the working partnership with URA to ease tax administration/grow tax base

Achievement

The new URA Administration has established a very robust framework for tackling Tax Matters. The operations of the Framework have since kicked off.

This framework will be used to ease Tax Administration concerns to bog down members. On the other hand, the Framework also avails opportunity for handling strategic issues like EFRIS, DTS without polarization that is costly to businesses.

Cooperation with UMA to provide annualised tax clinics for UMA members

The formalisation of two committees; UMA – URA technical committee to meet quarterly and URA – UMA strategic committee to meet bi-annually to resolve all the pending issues.

Proposals

Development of a Comprehensive Tax Matters Compact/Study as committed at last UMA AGM

Achievement

UMA has developed the Study on Tax Matters which shall be leveraged in pushing for meaningful reforms beyond what normally appears during the Budget Cycle.

Proposals

Diversification of Regional Export Market following the coming into being of the Africa Continental Free Trade Area effective 1^st January 2021

Achievement

Beyond the unpredictable EAC market prone to unilateral adhoc prohibitions by EAC Partner States against Uganda, the Continental Free Trade Area presents options for Uganda to access other none EAC Markets. MTIC has crafted an Implementation Strategy, which, once implemented; can cause the change needed.

UMA is a substantive member of the strategic committee that is reviewing the strategy.

UMA has been instrumental in creating links for Ugandan manufacturers on the numerous trade initiatives and business summits held around the region for visibility

Proposals

Leveraging the National Development Plan Three (NDP3) Implementation

Achievement

NDP 3 pitches agro industrialization and value addition onto the extractives as key to growth. It mainstreams need for imports replacement in addition to focusing on exports growth for especially manufactured goods. NDP3 identifies even critical projects that should be established by Private Sector or as PPPs to drive the development trajectory.

This also spans into the current hot debate on mineral beneficiation especially for copper and iron ore. Sector Associations like UGISMA is in high gear and discussions ongoing in line with members partaking of this development. With at least one member utilizing the iron ore to produce wire rods.

Proposals

COVID 19 restrictions forced the world to innovate around doing business resulting into rapid digitization of Government processes including public procurement. GoU needs to follow best practice as other jurisdictions.

Achievement

This is great news for the formal sector that constitute all UMA members. It avails opportunity for Government to black-list informal players that distort the market. This shall even out to create a level field of play with intensified digitization.

Proposals

UMA made major submissions through the head of delegation of the Ugandan team at the last concluded Council, in November 2022, where a number of sector wise issues aimed at improving Uganda’s competitiveness in the region and creation of a level playing field for the local industries were presented.

Achievement

At least 90% of the submissions were granted, with the exception of rubber gloves, which required amendment of the EAC Customs management Act, and were deferred to the next Council meeting for consideration.

Issues granted include;

Remission of duty on parts used for the manufacture of deep cycle batteries

Removal of the tariff split for the edible oil that was causing major distortions.

Training on Strategic Goods Control and use of single transit documents for manufacturers.

Duty remission for wire rod of tariff lines 7213.91.10 and 7213.91.90 at 0% to manufacturers of wire products to enable them access regional market

Proposals

1. Sugar for industrial use: When government moved to impose 100% on the sugar and close the duty remission facility in a bid to protect the sugar companies, UMA on realising the capacity gap proposed to government to allow remission while consuming the locally available quantities.
2. Wire rods and boron issues: Uganda moved to unilaterally impose duty on major material inputs for the steel sector while the rest of the region was applying o% duty. Given the distortion caused and the loss of market by industries, UMA caused government to revert to the regional rates as applied.
3. Plastic excise duty: The Government of Uganda during the FY 2020/21 imposed excise duty of 2.5% or $70 per ton whichever is higher on plastic raw materials. UMA lobbied MoFPED and Parliament to cause an amendment to the duty in a bid to reduce cost on sectors that had been affected.
4. Sub-standard steel: UMA, UGISMA and UNBS partnered to reduce the prevalent sub-standard steel bars on the market.
5. Import Duty on animal feeds: UMA proposed a 10% protection from imported complete feeds, since capacity to produce feeds inhouse had grown substantially.

Achievement

1. Government agreed to open duty remission for manufacturers who use the sugar as a major input. as an interim measure at this time while local manufacturers build capacity. Currently only Kinyara sugar is in production, while GM sugar and Mayuge are also coming on board
2. Government agreed to revert to regional rates and grant regional remission to the steel manufacturers in Uganda. This has settled mush of the would be challenges of the sector

3. The MoFPED has since given guidance through a regulation to URA to relieve and exempt affected companies that are involved in the manufacture of water and sanitation items, pharmaceuticals, mattresses, textiles, etc alongside those involved into recycling.

4. The crack-down on the dealers of sub-standard steel articles, caused major reduction in their sale, creating confidence among customer on the quality of Ugandan steel. UNBS continues with the activity with support from the sector.
5. Government, through URA invoked the law to provide the much-needed protection for the feeds industry.