Business leaders, Government team up to protect investors
Apr 04, 2024
"We need your experience," Col. Nakalema stressed. "Working together, we can effectively promote Uganda's business environment. Your guidance is essential."
State House Investors Protection Unit meeting with officials from the Uganda National Chamber of Commerce and Industry. (PPU Photos)
By Nelson Mandela Muhoozi and Dalva Dhont
Journalists @New Vision
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The State House Investors Protection Unit (SHIPU) and the Uganda National Chamber of Commerce and Industry (UNCCI) joined forces to discuss avenues to promote and protect investment in Uganda.
During a meeting in Nakasero in Kampala, the head of SHIPU, Col. Edith Nakalema, praised the UNCCI for its longstanding commitment to Ugandan businesses.
She acknowledged their role in supporting business growth and development throughout the country.
Col. Nakalema emphasized the crucial role that UNCCI members play in attracting investment. She also highlighted the importance of collaboration between SHIPU and UNCCI to create a secure environment for investors.
"We need your experience," Col. Nakalema stressed. "Working together, we can effectively promote Uganda's business environment. Your guidance is essential."
According to a State House release, she said SHIPU remains committed to coordinating with all stakeholders to ensure a thriving business environment for investors in Uganda.
Uganda Electronic Investors Protection Portal
Col. Nakalema also tipped the members on how best they can take advantage and benefit from the Uganda Electronic Investors Protection Portal.
The portal, an initiative of the State House Investors Protection Unit, was launched by President Museveni last year in December to safeguard investment processes in the country.
"The President guided on how to make the environment of investment of our country better by leveraging technology. With this portal you can make inquiries of any nature, see the beauty of Uganda, compile complaints about the investment atmosphere,” she said.
“It has been proved to be the first one in the whole of Africa that interconnects all agencies, and it is directly monitored by the President. This portal is interconnected with about 22 government agencies and departments which are involved in the investment. You can inquire on any subject matter and the officers will respond to you about anything regarding investment in the country.”
Col. Nakalema also disclosed that this portal has four main functions which include guiding investors (domestic and foreign), reporting mechanism, support enforcement, and receiving feedback.
“Several investors have fallen victim to fraudsters and have lost resources. With this portal, you don't need to go through a middleman. You receive feedback in a record time.”
“We have received and handled 180 complaints successfully so far. Most of these come from the domestic investors which means they are concerned with the welfare of our investment atmosphere.”
The Uganda National Chamber of Commerce and Industry president, Olive Kigongo, said the chamber's main objective is to promote and protect the interests of the business community, particularly its members who are represented in all the sectors of the economy.
“We are a multi-sectoral organisation with several business communities. We have 150 regional offices. We are a bridge to different businesses locally, regionally, and internationally. Daily, we get complaints and inquiries about business opportunities,” Ms. Kigongo said.
She also revealed that they can do due diligence for Ugandans and the unit to identify investment opportunities and genuine investors.
However, she noted that they have a challenge of having very many centres handling investors, but commended the portal saying it will help to deal with that issue.
The former Attorney General, Fred Ruhindi commended Col Nakalema for her efforts in coordinating investors to create a secure investment environment in the country.
“These meetings are like a mirror; they help us to look at ourselves and emphasize business hygiene. We must survive in a disciplined environment, and it is precisely why her office was set up.”
The UNCCI Chairperson, Mbarara City, Thomas Makundane urged the government should establish regional investment protection offices and set up voluntary teams to oversee the activities of the investors in every district.
The intervention he said would protect the investment climate and ensure the protection of investors in Uganda
“We should sensitise the literature about the good of welcoming investors and creating a conducive environment for investment. Local councils and politicians should encourage investors but not to defraud them,” he said.
Taxation woes
Barnabas Kiisa, the chairperson of Uganda National Chamber of Commerce Mbale City said that tax incentives given to foreign investors are not yielding the government much.
“Let tax holiday be a maximum of 5 years because within 5 years a business should have taken off. What happens is that the businesses are given 15 years of Tax incentives and after they close the business and register a different company and that's how companies dodge taxes,” he said.
According to Kiisa, foreign investors register many companies get incentives for all the companies, and use the trick to dodge taxes.
“The system is being taken for granted and nobody is questioning this. The government is losing lots of taxes. And when it comes to impunity in tax payment, politicians and some big wigs in government don't pay and yet we are on the same streets doing the same businesses. How do you expect us to compete,” he asked.
According to the UNCCI chairperson for Hoima City, Godfrey Magezi, this implies government revenue collection.
He also pinned the Uganda Revenue Authority, noting that Businesses are closing in his area due to unfair dealings of URA.
“URA does not care if businesses close. They are not open to discussion. URA assesses you as a figure you can't afford, and they are not even open to discussion and people are dying of stress. They need to note that as businesses that stimulate the economy collapse, jobs and revenue will be lost. State House investment unit has to intervene in this,” he said.
He added, “These days when you see URA at the neigbhours' shop, you hurry to close the doors so that you don't go through the same embarrassment. URA is using guns to collect taxes. In business, you don't use power. You need dialogue.’
Col. Nakalema assured the local investors that if the issues are reported through the right channel, the matters shall reach the President.
Nakalema told the investors that she was engaging with the ministry of the presidency and assured them that the issues would be handled.
Nakalema warns imposter investors
Nakalema also during the meeting warned imposter investors who come to the country to encroach on micro trade that can be done by local people.
“Foreign investors encroaching on local micro trade, but operating shops are a national security threat. Ensure that you don't ignore such people because we must protect our children's jobs,” she said.
She added, “We are discussing with security agencies regarding this issue, and I even engaged Minister Jim Muhweezi to look into this issue, together with other security agencies like the External and Internal Security Organisations, and Resident District Commissioners.”
Magezi said that they need regional investment protection units to protect investors and a volunteering team to oversee investors' activities.
“We need to sensitise locals about investor-related issues. Local councils and politicians should not distort and defraud investors while promising them connections and the government should continue protecting investors since it is the way to job creation,” he said.
Alex Lemu, a businessman from Karamoja asked the government to ensure local investors are supported through affordable loans and storage facilities, in addition to other business incentives to create a conducive investment climate.
He also said the government should ease land title processing. “Sometimes, it takes years to process the title. The government should find a way to fast-track such processes.
The meeting was also attended by representatives of UNCCI from the different regions of the country.
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