FDC's Mafabi says to exempt start-ups from taxes

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Forum for Democratic Change (FDC) presidential flag-bearer James Nathan Nandala Mafabi has pledged tax exemptions for start-ups and small businesses, positioning economic relief at the centre of his campaign message as he toured Apac district on November 18, 2025.

With just 57 days left before Ugandans elect their next President, Mafabi told the residents that an FDC government would remove the financial barriers that keep young and small enterprises from surviving their first years.

Mafabi addressing his supporters at a campaign rally in Apac on November 18, 2025. (Credit: Alfred Ochwo)

Addressing supporters at Mayor’s Gardens in Apac municipality, Nandala alleged that the current tax regime is suffocating innovation and discouraging youth from venturing into business. He promised that new enterprises run by young people, women and graduates would enjoy tax holidays until they break even. He further pledged start-up capital of shillings one million for graduates to enable them to create employment for themselves and others.

“Our young people, mothers and sisters who are doing small businesses, will not pay anything until they stabilise. For businesses already making profits, we shall reduce taxes. Uganda will become a favourable investment destination for both locals and international investors,” he said.

Voters in Apac listening to Mafabi at his campaign rally. (Credit: Alfred Ochwo)

(Credit: Alfred Ochwo)

However, Nandala’s promise also comes at a time when the National Resistance Movement (NRM)-led Government has introduced a three-year income tax holiday for new start-ups as part of its fiscal strategy for the 2025/26 financial year. The measure, which took effect on July 1, 2025, intends to spur innovation, encourage the formalisation of small businesses and stimulate broader economic growth across the country.

Nandala invoked the legacy of former President Apollo Milton Obote for uplifting Uganda’s health by building 22 hospitals across the country, many of which still serve communities. In Apac, he noted, residents continue to rely on Apac Main Hospital, a testament to what he termed Obote’s development-driven leadership.

“We want to thank the late Dr Obote for the way he left this country. Now that my brother Akena is not in this race, I ask you to join me and vote [for me] overwhelmingly,” Nandala said.

(Credit: Alfred Ochwo)

The salient questions

The incumbent party secretary general was on his second day in the Lango region, where he held rallies in Apac and Kole districts. 

He promised that, if elected, he would compensate families for cattle lost during the violent insurgencies that ravaged northern Uganda over the past two decades. The pledge is aimed at healing long-standing wounds in communities whose economic foundations were shattered during conflict.

Mafabi is also committed to opening access to natural resources, particularly fishing waters on the River Nile, lakes Kyoga and  Kwania. Residents of Apac, Amolatar and Kwania have repeatedly complained about restrictions imposed by security forces under what they describe as unclear guidelines.

On agriculture, Nandala vowed to allocate 10% of the national budget to the sector, arguing that Uganda cannot develop without a strong farming backbone. He promised to revive large-scale cotton production in northern Uganda so that it once again complements coffee as a leading cash crop.

At Awlabongo trading centre in Ibuje sub-county, trader Solomon Akwo said unstable electricity has crippled livelihoods.

“Apac has not had stable power at any point this year,” he said. “Businesses that need electricity have collapsed. Even the poles standing with no wires are still there. We want power, and we want drugs in the hospital. Our main hospital needs to be elevated to Health Centre IV.”

In a separate interview, resident Ivan Ewayi said the state of roads continues to trap communities in poverty. He noted that only a few kilometres of tarmac exist in the district, most of which is riddled with potholes. He added that many sub-counties lack secondary schools, forcing children to trek long distances or drop out altogether.

“Before, many people survived on fishing, but now the army has pushed them away,” he said. “We need services brought closer to us.”

Nandala used these concerns to emphasise his social protection plan, which includes a monthly payment of shillings 65,000 for citizens above 65 years. He also promised to revive cooperatives to strengthen farmers’ bargaining power and to reintroduce the Agricultural Bank to offer affordable credit.

Apac continues to battle widespread poverty, food insecurity, poor infrastructure, declining soil fertility and rising teenage pregnancies. Socio-cultural barriers such as gender inequality, domestic violence and resistance to new technologies have further slowed progress.

Nandala assured residents that an FDC government would directly confront these challenges, saying that within five years, the sorrows of this region will be worked on.

In the 2021 general elections, Apac voted overwhelmingly for the Uganda People’s Congress at the parliamentary level, while President Yoweri Museveni secured the majority of presidential votes.