NEWS EDITOR MEDIA

LAST week on 16th May 2022, Baydle company through its financial Agents, kick-started the official opening of financial Agents branch offices around Kampala and the surrounding areas.
This was done as Baydle made 6 months in Uganda making people rich right at their fingertips.
BAYDLE is an online intermediary Platform that offers online jobs for those who need daily income which ranges between 100,000 – 300,000Ugx.
Baydle app only requires a member to click the Like Button on Baydle app and the system will automatically forward the order to the platform partners.
One of the official financial Agent branch was opened up in Nansana, off Municipal council head offices, spearheaded by the Senior regional Agent Lee Linda.

Another branch was opened up in Mukono at Mukono mall Opposite Quality Supermarket near IMC Medical center. It is headed by Shuuti Alexandria Abbot.
These offices have been put in place to easily help members access recharge services easily and guidance for new members on how the platform works.
The Baydle application business model is a three-way win-win policy, Youtube/Facebook?Tiktok/Twitter bloggers and marketeers need to increase CTR popularity.

Baydle Users get paid for increasing vedio CTR, and Baydle acts as an intermediary between the social media platforms and the online marketers for effective CTR results as it pays it’s subscribers daily income on doing and completing tasks as per VIP level.
“This is our investment plan and income structure which lasts for a year per subscription. Visit our website www.bbc ub.com to subscribe to any VIP level and start earning now.” Said Baydle officials at the opening of Nansana branch.

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THE 10% CPO Tax has Hit Oil Sector in Uganda as ‘Tax Free/Illegal Products’ Flood Ugandan Market.
In July 2021, Government of Uganda levied UGX 200 on a litre of Cooking Oil and the 10% import duty on Crude Palm Oil products even when Crude Palm Oil is an essential raw material for sector players of Oil and Oil Products in the country. 
As a result of these levies, there is abnormally a current increase in prices of personal care items, edible oils and cleaning products. The affected sector belongs to the Fast Moving Consumer Goods category.
The Ugandan Manufacturers who have been subjected to the excise duty per litre of produced oil must compete for cereals with other East African counterparts who don’t have such tax in their countries. Important to note is that the Ugandan market prefers palm oil products to sunflower products.
Surprisingly, Uganda is a key member of the East African Community that agitates for zero taxes on such products yet the cost of production in other East African states is said to be cheaper compared to Uganda’s. Unless it’s repealed, it will slowly discourage sector players making it inevitable for the different investors/cooking oil factories to close down, move to any East African States. This in both short and long run will lead to loss of jobs by many Ugandans, URA will not get taxes and Uganda’s supply chain will be no more.
Crude Palm Oil prices hit record high in May 2021 along with Soya bean oil, Sunflower oil and other soft oils which compete for a share in the vegetable oil market. The prices in Uganda have increased to USD1500 (UgX5.4m) per metric tonnes from USD500 (ugX1.8m) close to two years ago.
One Kilogram of such products was at UgX4500 last year from UgX3500 over the last three years thereby tampering with the prices of several household items in modern times.
For example soap which for long had been sold at UgX4000 is currently being sold at UgX4500 at known sales points throughout the country with a litre of cooking oil increasing from UgX7000 to UgX10,000. The price changes have not spared margarine and other edible oils whose costing has shot up by over ugX3000.
A key sector player on condition of anonymity notes that with the persistent lockdown and restrictions brought by the COVID-19 pandemic, shipping lines are hardly available and those that exist have increased charges by abnormal percentages never heard of adding that the increase is visible in other raw materials used in the production of the products. As a result, this makes transportation costly and drives the cost of production through the ceiling especially now that the government introduced a 10 percent import levy on raw material as a measure for import substitution.
Research shows that currently, available sector players can produce between 3000-4000 metric tonnes compared to the local demand which stands at 15,000 metric tonnes. This means that with the current crisis in the sector, cereal oils like sunflower and soybean would have been a good substitute. However, their production remains at the lowest.
Having observed the unfair treatment some of their members are being subjected to compelled Uganda Manufacturers Association through their outgoing Chairperson, Barbra Mulwana to write to the Minister of Finance, Planning and Economic Development.
In her July 5, 2021 letter, workaholic Mulwana revealed that their association had noted with serious concern that Uganda had allowed the imposition of 10% Import Duty on the crude palm oil yet historically, Crude edible oil imports attract import duty at 0% (raw material), olein fraction attracts a 10% (processed) and refined edible oil attracts a 35% (final product). She further says that the sector contributes to domestic taxes such as corporate tax 30%, VAT 18%, withholding tax 6%, Excise duty UgX200 per litre as well as other Non- Tax Revenues and statutory contributions. She also argues that the objective of this tax regime is to enable the sub sector to improve domestic capacity, raise farmer output, develop the edible oil supply chain and ensure supply of edible oil products to Ugandans.

Noting that government and the private sector have taken several steps to boost local production citing an example where government implemented focused programs with the assistance of I FAD such as The National Palm Oil Project and the National Oilseeds Project under Ministry of Agriculture Animal Industries and Fisheries, the private sector whilst onboarding the I FAD projects, has also Invested heavily by setting-up out-growers and contract farmers schemes, improving milling capacities as well as other essential post-harvest activities across the value chain.
Mulwana who has since ceased the chairperson of manufacturers in the country asserts that despite these successes, there is still an overall shortfall of edible oils in the country and this Is being substituted by imports of Crude Palm oils that are refined and packed in Uganda, which is a benefit for Uganda as extensive value addition is happening here supporting employment, collection of statutory taxes and revenue generation for utility and supporting companies and parastatals as well as scores of local suppliers whose businesses rely on the refiners. She has since pleaded with government to reconsider its position by retaining the zero percent import duty on
crude palms oil (raw materials).

The experienced Mulwana as far as business is concerned anticipates challenges as a7 result of the implementation of the 10% Import Duty on Crude Palm Oil (raw material) to include but not limited to partner states for example Kenya charging a 0% import duty on Crude Palm Oil, an increase of Uganda’s imports duty from 0% to 10% will lead to dumping and smuggling of Kenyan products (refined edible oils, cooking fats and soaps, made from the non-taxed CPO) by traders on to the Ugandan market.It’s important to note that a similar scenario has been experienced in the wheat sub sector and has resulted into massive wheat smuggling along the country’s Eastern border, the introduction of a 10% import duty on Crude Palm Oil (raw material) is affecting prices of edible oil products as well as byproducts such as soap used as a key product in the fight against COVID19,Distortion of the import substitution effort, introduction of a 10% import duty on Crude Palm Oil (raw material) will encourage local edible oil refiners to import already processed oleim fractions (refined clean processed from CPO which is the raw material) instead of raw materials (CPO) Leading to value addition happening outside Uganda as opposed to within the country. This will lead to a policy failure with regard to the government industrialization agenda,the operating cost for oil millers have been on the rise, for example the cost of labour is increasing due to growing demand for welfare benefits such as medical, insurance benefits in the event of (accident, disability, death, retirement), leave as well as salary increments, Local oil production from locally sourced oilseed grain is at approximately 150.000 to 180.000 metric tons per annum which has significantly increased over the years but still low to meet domestic demand of approximately 220.000 to 240.000 metric tons per annum. On the other-hand oil seed grain used in production of edible oil such as soya bean and sim sim are consumed as direct food, leaving a smaller portion for oil milling. As a result, making Uganda a net importer of edible oil,the edible oil sub sector is strategic to Uganda’s economy, it offers livelihood to a number of players involved in the value chain i.e. transporters, millers, plastic, carton and label manufacturers, distributors, importers/exporters, clearing agents, wholesalers, hoteliers/restaurants, confectioneries, advertisers among others not to mention. These not only pay central government taxes, they also remit statutory payments such as licenses and fees. NSSF. Utilities etc. At the backdrop of the prevailing COVID19. increasing import duty from (0 to 10) % will negatively affect the value chain with anticipated losses in consumption and income to many who depend on this value chain, production of edible oil is constrained by a number of factors such as small-scale and fragmented land holdings, limited adaptation to weather changes, leading to low yields, prevalence of diseases and pests, low survival rates of seedlings planted, low use of agro-inputs, poor farm management and limited use of market-oriented production such as contract farming, high cost and limited availability of inputs (improved seeds, fertilizer and chemicals). This shows that the sub sector needs more support from government, across oil seed milling firms, capacity utilization is a problem. This is caused by the meager quantities of oil seeds grain on the local market. Additionally, climate change and fluctuations in rain patterns h3ve negatively affected the yield per hectare. Therefore, staying the import duty at zero percent will allow full implementation of the MAAIF/IFAD programs and consequently enabling the import substitution in the sector, More land is needed to produce edible oil. For example, with the current imports of 244,985.7 tons of edible oil Uganda would need either 65.844.9 hectares (162.706.2 acres) of oil palm. However, it should be noted that land is also needed to produce other food crops if Uganda is to maintain food security.
With an elaborative explanation, Uganda Manufacturers Association appeals to government to stay the application of the 0% Import duty on crude palm oil as this will help minimize the edible oil sub sector trade deficit in the short run as a long-term solution is realized at 0% import duty, the edible oil sector will remain competitive in comparison to EAC partner states and for related exports markets, through the Ministry of Agriculture, Government should push for the increase In edible oil yield per hectare by Incentivizing supply of agro-imago puts e.. Improved climate resistant seeds, familiar pesticides and market-oriented farm practices such as contract forming and out growers, government should lobby EAC Governments to have a harmonized position at the EAC level, Government should consider banning the exports of unprocessed oil seeds and oil palm. Or impose punitive export tariffs, in line with international best practices. This will naturally trigger local processing with all the attendant benefits in form of employment creation, value and monetization of the local economy

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BY JOHN NAKU
JINJA

FRESH from scooping the overall 2021 Best Visionary Agro-Processing and Manufacturing Company award in Uganda, Jinja based Bidco Uganda Limited (BUL), a fast Moving Consumer Goods company with a modern edible oil processing complex in Jinja City has again received other two regional awards.
The two awards are Quality Excellence Award for Best Class Manufacturing in East Africa and Quality Excellence Award for the Best Manufacturer of Edible Oil and Detergents in East Africa.
Organized by East Africa Brand and Quality Awards under the Theme: “Innovation and Productivity: The Place of Quality in a Time of Sustainable Change”, at Golf Course Hotel on Thursday, the event recognized the best brands in the East African region.
Handing over the awards, Trade State Minister Hon. Harriet Ntabazi who represented the 1st Deputy Premier also Minister of East African Community Affairs Rt. Hon. Rebecca Alitwala Kadaga noted that the private sector is doing a commendable job as regards employment and paying taxes. 

The minister further appealed to the different companies present to ensure that they keep their brands growing as a way of customer satisfaction warning them against substandard products on the market.
Receiving the award on behalf of Bidco, Anoop Sharma General Manager acknowledged the trust the people of East Africa have in their products. 
“Winning two East African awards is not a simple achievement to us as a company.We applaud the trust and confidence our consumers have in us and commit to even offer more on the market in the future that meets quality”, a jovial Anoop said.
Levi Kabatabarukye, Head Quality Control at Bidco, flanked by Saba Ghirmai revealed that all their products are ISO Certified.
“Our products conform to the ISO standards and this recognition is a true reflection of what we produce”. Said Levi.
The General Manager was accompanied by a team from the Sales and Marketing department.
Guard Bender,Chairman of the Awards event revealed that the different awardees were chosen across the East African region with emphasis on Quality of products that the different companies produce.
Over 100 companies across the region were awarded.

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HON. BETTY Amongi Akena, the newly appointed Kampala and Metropolitan Affairs minister want President Museveni’s directive on decongesting the Central Business District (CBD) and easien public transport in Kampala Metropolitan Area by replacing matatu with 980 buses, executed.

Minister Amongi will officiate at a Greater Kampala Mass Transit Bus Service Conference at 8:30am on Thursday January 30th 2020 organised by Tondeka at International University of East Africa, Main Auditorium in Kansanga under the Theme: ‘From Planning to Execution’.

For starters, Government of Uganda entered into an Eight years’ deal with powerful Hinduja Group in India which manufacture vehicles, to supply 980 Ashok-Leyland buses to Uganda in phase one, and replace over 12000 taxis that has been operating around city centre.

“This is a very organized project that works in different Africa cities and many people will find no reason to drive their cars to and from city centers since buses will be very many and fares affordable.”Said officials of Tondeka Metro, a locally Special Purpose Vehicle sponpored by Hinduja Group to operate these buses.
Now all is set and six months from now, these state of the art buses will be in Kampala.
This comes after a meeting between The Head of State and Hinduja Group to supply Ashok-Leyland buses of the JAN make that will not only boost Tax revenue by 100 billion in taxes and GDP by US$ 800M annually but also create over 20000 jobs especially to youth, veterans and women in the first year.
In this meeting, both parties agreed that allowing buses to operate in Kampala will enhance urban safety and security, massive reduction in security surveillance costs, it’s affordable in costs to the elderly, youth, women and disabled and cost optimization.
“In countries where our buses are operating, the city roads are decongested and this leads to quality environment. There is road optimization and a very organized city transport system.” Wealthy Hinduja Group told the President in the meeting.
They talked about Ancillary infrastructure services, issue of IPO – on completion of year three track record  and that there will be service accessibility and predictability.
The suppliers assured Government that their buses are comfortable and hygiene and will cut trabsport costs hence household savings.

M7’S DIRECTIVE
In a letter to Finance, Planning and Economic Development minister Hon. Matia Kasaija dated August 31st 2018 on supply and assembly of Ashok leyland buses and trucks, president Museveni directed him to, “Expedite the signing of the Term sheet dated  July 9th 2018, valid
for 90 days from EXIM Bank of India for supplier credit under Loan Agreement.”
Letter reads, “Recently when I met with the representatives from Hinduja Group, in regard with the supply of 980 buses Ashok – Leyland to Uganda through a secured funding under EXIM Bank NEIA, I agreed  on
the following actions”.
“Ashok – Leyland will supply 980 buses imported from India under Phase 1 and to establish an assembling plant for trucks/buses in Uganda with a minimum of 200 units per month for the supply of vehicles beyond the initial 980 buses.” President Museveni said.
He added that, “The Ashok- Leyland buses will only use arteries of cross-city transport (East-West, North-South, South-East to
North-West) and leave the feeder branches to the locals for some years.”
The President also agreed with Hinduja Group to strengthen the institution and technical collaboration between Ashok -Leyland and Kiira Motors in Uganda.
“Eventually, Ashok-Leyland will float shares so that the locals can also benefit from our growing purchasing power, transport expenditures in this case.” Said Museveni in his letter to the Finance minister in which he gave him directives.
“The past is PROLOGUE not DESTINY! We should be open minded and curious. A lot has been done. More needs to be done”  said the President directeing Finance minister to expidite this project. The project name is Tondeka Metro and the government is implementing this project through UDC, the government investment arm in collaboration with the Hinduja Group/Ashok Leyland. This project will be fully implemented in 6 months. Matatus will now work in feeder roads, feeding buses and no matatu will be allowed in centre centre and all routes where buses operates.

WHY GOVT WENT FOR ASHOK-LEYLAND
It is the leading Bus Manufacturer with Mass Transit Bus System (MTBS). They have customized technical specifications, flexible financing and delivery terms and conditions and their buses are technically enabled with an intelligent integrated transport system – for tracking vital information.
Government says, Ashok buses have excellent technical and institutional operation and maintenance support and solid African footprint in the cities of Dakar, Lagos, Abuja, Abidjan, Accra, Luanda among others.

DETAILS OF THE DEAL
Hinduja Group will supply JAN Bus Vehicle module 980 buses that will operate a cross 4 service routes in Greater Kampala Metropolitan Area. According to project frame  work, there will be aftermarket support and Cashless ticketing Infrastructure Module of  Bus Depots & Infrastructure, Mobile service vans and Cashless IT Infrastructure including cards, hand held devices & servers. The Spare part and Workshop development Module will have fast moving spare parts and accident bound body parts and Work shop development related tools & special tools etc.

JAN  BUS SALIENT FEATURES
· 12m Front Engine Semi Low Floor Bus (650mm Floor Height)
· Fully Flat Floor throughout the Passenger Saloon
· Modular Body – Accommodates different Applications / Door Combinations
· CRS (Common Rail System) Engine
· AMT (Automated Manual Transmission)
· Full Air suspension (Kneeling arrangement available)
· Tubeless Radial Tires
· Conforms to latest UBS (Urban Bus Specification) formulated by MoWT
·  Multiplex Wiring
· Latest ITS (Intelligent Transportation System) features enabled

SOLUTION: NETWORKS AND ROUTES
Buses will operate in four routes.
Eastern routes  will cover; Kampala- Jinja Road (up to Mukono, Kampala- Luzira Road (Up to Kirombe)  and Kampala- Ntinda Road (Up to Namugongo).
Western routes are; Kampala- Masaka Road (Up to Nsangi), Ka;mpala-Mityana Road (Up to Buloba) and Kampala- Hoima (Up to Wakiso).
Northern routers are; Kampala- Gayaza Road (Up to Gayaza), Kampala-Bombo Road (Up to Kawanda) and Kampala- Northern Bypass Road.
Southern routes; Kampala- Entebbe Road, Kampala- Makindye, Kampala-Nsambya Road (Up to Lukuli), Kampala- Gaba Road (Up to Gaba),Kampala-Salaama Road (Up to Munyonyo) and Kampala- Kibuli Road (Up to
Namuwongo)
Transit Terminals  will be constructed in Mukono, Nsangi, Buloba,Wakiso and Matugga.

BUS FARES
Government agreed with the Ashok – Leyland operators fares to be socially affordable.
The proposed Fare charges are as follows:
·  One way/Single Trip; UGX 1,200. For example from Buloba to Kampala, from Entebe to Kampala, from Wakiso to Kampala, from Matugga to Kampala or from Mukono to Kampala.
·  One day unlimited travel; UGX 3,500. Use this ticket to travel where ever you want with the Tondeka buses.
·  Weekly pass (unlimited travel); UGX 18,000
·  Monthly pass (unlimited travel); UGX 55,000
·  Number of Passenger Transported Daily; 1,980,000
·  Number of Km Per Bus  Daily; 200KM
·  Average Speed per hour; 25/30km

EXPECTED IMPACT w.e.f FY 2019/2020
Under Economic GDP according to World Bank, US$ 800M is expected per year and in 8 year period it will be US$ 6.4B.
Looking at Environmental – Excess Fuel, report by NEMA shows, UGX 300B (US$ 80M) estimate per year and in 8 years period , it will be UGX 2.4 Trillion .
Under direct employment, in a year, 6000 people will be employed and 10000 people are estimated to be employed in eight years.
Indirect employment, it is expected in the first year to take 4000 people and in eight years, it will be 5000 employees.
Under Treasury – Government of Uganda;
·  Estimate annual Corporate  Tax will be UGX 50-60B and UGX 400B – 450B.
·  Staff Income Tax in a year is estimated at UGX 40 – 45B and inmEight years it is estimated at UGX 320 – 360B.
·  Import Taxes/Vat Year ½ is annually estimated at UGX 181N (US$ 47.5M)
·  NSSF fund annually is estimated at UGX 17B and 136Bb
· New Income Stream/Operator Fee on Revenue (0.5%) UDC is annually estimated at UGX 3.14B and 25B in Eight years.
·  Licence fees in a year is expected at UGX 1B and in eight
years it is estimated at 8B.
·  Local Authority Fee (KCCA 50%) in a year is expected at UGX 3.6B and in eight years it is estimated UGX 28.8B.

(Who is who in Tondeka Metro? Wait for the full details)

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