World Bank tells Uganda to speed up business reforms

Uganda also made trading across borders easier by constructing the One-Stop Border Posts, which reduced border compliance time for exports

The Head of Private Sector Competitiveness Program World Bank Group Uganda Mr Moses Kibirege (L) chatting with Mr Keith Muhakanizi, the Permanent Secretary Ministry of Finance, Planning and Economic Development during the World Bank Group publication launch of the Doing Business Report, 2017. PHOTO BY RACHEL MABALA 

In Summary

• Mr Badagawa said Uganda has to continue embracing best regulatory practice.
• The private sector development specialist at World Bank Uganda country office, Mr Moses Kibirige, said Uganda has undertaken various reforms to improve the environment for doing business in the past five years and continues to pursue key initiatives aimed at enhancing Uganda’s outlook for potential investors.

By MARTIN LUTHER OKETCH

KAMPALA.
Although Uganda has moved up seven places in Doing Business ranking by the World Bank, moving from 122 in 2015 to 115 in 2016 out of 190 economies, it has been told by the bank to institute reforms to achieve better ranking.
The World Bank Doing Business Report 2017 which is its 14 edition and themed ‘Equal Opportunity for All’ released in Washington DC on October 25, shows that Uganda’s improvement is based on three reforms that the country instituted over the 12 months.
Uganda made reforms in starting business through eliminating the requirement that a commissioner of oaths must sign compliance declaration; the country also made paying taxes easier by eliminating a requirement for tax returns to be submitted in paper copy following online submission. At the same time, Uganda increased the stamp duty for insurance contracts.
Uganda also made trading across borders easier by constructing the One-Stop Border Posts, which reduced border compliance time for exports.
In an interview with Daily Monitor after the release of the report, Private Sector specialist trade and competitiveness at the World Bank, Ms Carolyn Nshemereirwe Ndawula, said: “Uganda has greatly improved her ranking but it has to move faster enough implementing reforms in the pipeline like land administration, full automation of business registration/licensing at one stop centre to move into double digit ranking.”
Ms Ndawula added: “If government can implement all the reforms currently in the pipeline Uganda would move to double digit and even to single in doing business ranking in the near future.”
However, Ms Ndawula said competition in Doing Business ranking among countries is very stiff and has to really work hard to improve the economy.
The Permanent Secretary in the ministry of Finance, Mr Keith Muhakanizi, said government is fully committed to reforms in the various sectors of the economy.
“The business environment has been rough in the last one year but we are grateful with the World Bank ranking for Uganda,” he said.
The executive director Private Sector Foundation Uganda, Mr Gideon Badagawa, in interview with Daily Monitor said Uganda is on track towards making positive reforms as far as doing business environment is concerned because it has moved from a ranking of 155, 135 122 and now 115.
“However, we have to be in double digit like Rwanda. There is no big difference between Uganda and Rwanda regarding reforms, ” he said.
Mr Badagawa said Uganda has to continue embracing best regulatory practice.
“We must comply with the reforms in place. We should also automate the institutions responsible for business operations such as registration, licensing and tax payment such that we reduce on the time taken in starting a business in this country,” he said.
The national coordinator, competitiveness and investment climate strategy secretariat at the ministry of Finance, Dr Peter Ngategize, told Daily Monitor that they feel encouraged by the ranking for the last two years because it shows the country is improving its investment climate.
“However, the reforms are not as fast as it should be. We have to move faster than we are moving now with reforms like other countries are doing,” he said.
Dr Ngategize said the secretariat is working with government and reforms must continue because there is money that has been offered by the World Bank for Uganda to carryout business reforms.
The private sector development specialist at World Bank Uganda country office, Mr Moses Kibirige, said Uganda has undertaken various reforms to improve the environment for doing business in the past five years and continues to pursue key initiatives aimed at enhancing Uganda’s outlook for potential investors.
“The World Bank Group has worked closely with government of Uganda and the business community to validate all the reforms that were submitted for verification to the World Bank Group Doing Business Team in May 2016,” he revealed