guide investing

MINISTRY OF FOREIGN AFFAIRS Danida Danida Private Sector Development Programme in Uganda Investing in Uganda A practical guide for investors Danida Private Sector Development Programme in Uganda Investing in Uganda A practical guide for investors September 2004 DANIDA PSDP 2 INVESTORS’GUIDE Background The purpose of this Guide is to provide practical information to prospective Danish investors in Uganda. The Guide addresses topics, which generally apply and hence are relevant to most sectors - i.e. investment climate, company law, labour laws, taxation, environmental issues, immigration etc. The Guide does not cover all the issues in the required detail that different investors would find useful. Where possible contacts of institutions or individuals that can offer more elaborate information or handson support are suggested. Furthermore the Guide does not substitute the need for professional assistance from professional advisors when it comes to concrete agreements and contracts, e.g. legal, taxation or accounting issues. The Guide has been prepared with help from InterAfrica Corporate Ltd in collaboration with the Private Sector Development Programme at the Embassy. It does not reflect the opinion of the Embassy neither is the Embassy responsible for the accuracy of the information in this Guide. We welcome readers’ comments and updates / suggestions and will use them to further improve the services to the private sector. Please address further inquiries to: Danida Private Sector Development Programme Royal Danish Embassy P.O. Box 11243, Kampala Tel: +256 (0) 41 256687 +256 (0) 71 256687 Fax: +256 (0) 41 254976. E-mail kmtamb@um.dk www.psdprogramme.com http://www.ambkampala.um.dk/en http://www.um.dk/da/menu/Udenrigspolitik/Landefakta/LandefaktaAfrika/Uganda.htm DANIDA PSDP 3 INVESTORS’GUIDE TABLE OF CONTENTS 1 INVESTMENT CLIMATE IN UGANDA 1.1 Overview 1.2 Identification of Investment Opportunities 1.3 Steps in the Investment Process IMMIGRATION PROCEDURES 2.1 Obligations, Formalities, and Restriction to Non-Citizens 2.1.1 Visas 2.1.2 Entry/ Work Permit 6 2 8 3 SETTING UP A BUSINESS 9 3.1 Company Formation 3.1.1 Types of Companies in Uganda 3.1.2 Company Formation 3.1.3 Legal Consequences of Incorporation 3.1.4 Procedures of Incorporation 3.1.5 Choice between Incorporation of a Local Company or Registration of an Existing Foreign Company 3.1.6 Pre-incorporation Contracts 3.2 Other Forms of Business Organisations INVESTING IN UGANDA 4.1 Introduction 4.1.1 Foreign Investor defined 4.1.2 Foreign Investment Restrictions 4.2 Investment Licence 4.3 Processing of Application 4.4 Priority Investment Areas 4.5 Special Allowances, Deductions and Tax Incentives 4.6 Credit from Domestic Sources 4.7 Externalisation of Funds 4.8 Protection of Foreign Investments 4.9 Duration, Termination of Investment License 4.10 Local Authority Trading Licences LABOUR LAW AND PRACTICE IN UGANDA 5.1 Introduction 5.2 Legal Requirements in Contract of Employment 5.2.1 The Workers’ Compensation Act 2000 5.2.2 The National Social Security Fund (N.S.S.F) TAXATION IN UGANDA 6.1 Introduction 6.2 Categories of Taxes 6.2.1 Income Tax 6.2.2 Pay as You Earn (PAYE) 6.2.3 Taxation of Employment Benefits 6.2.4 Taxation of Companies 12 4 5 16 6 18 DANIDA PSDP 4 INVESTORS’GUIDE 6.2.5 Taxation of Partnerships 6.2.6 Taxation of Small Business Taxpayers 6.2.7 Taxation of Trusts 6.2.8 Allowable Tax Deductions 6.2.9 Provisional Tax 6.2.10 Taxation of Branch Profits of Foreign Companies 6.2.11 Double Taxation Relief Agreement Between Uganda and Denmark 6.3 Value Added Tax (VAT) 6.3.1 VAT Exemptions 6.3.2 Zero Rated Supplies 6.3.3 VAT on Exports 6.4 Stamp Duty 6.5 Taxation of Rental Income 6.6 Withholding Tax 6.7 Excise Duty and Import Duty 6.8 URA Registration Requirements 6.9 Tax Objections and Appeal 7 LAND TENURE SYSTEMS AND USE IN UGANDA 7.1 The Customary Land tenure System 7.2 Freehold Land Tenure System 7.3 Mailo Land Tenure System 7.4 Lease hold Tenure System ACCESSING UTILITIES IN UGANDA 8.1 Electricity 8.2 Water and Sewerage THE FINANCIAL SERVICES SECTOR 9.1 Commercial Banks 9.2 Credit and Micro Finance Institutions 9.3 Development Banks 9.4 International Financing Institutions 9.5 Other Financial Institutions 9.6 Capital Markets Development 24 8 27 9 29 10 ENVIRONMENTAL PROTECTION ISSUES 10.1 Introduction 10.2 Essential steps 31 Annex 1: Annex 2A: Annex 2B: Annex 3: Uganda Selected Statistics Goods and Services exempt from VAT Zero Rated Supplies for VAT purposes in Uganda Information regarding Land Tenure Systems and use in Uganda 34 36 36 37 Useful links for further information 42 DANIDA PSDP 5 INVESTORS’GUIDE 1 INVESTMENT CLIMATE IN UGANDA 1.1 Overview Investors are attracted to Uganda because of a number of reasons: - Political stability, which gives investors confidence to engage in long-term projects; - Sustained economic growth, of over 6% per annum over the last 10 years; - A liberalised (less regulated) economy where market forces rule; - Big government focus on privatisation and supporting the private sector as the engine for economic growth; - An attractive tax regime, with zero or low import duty on plant and machinery, among others; - Internationally oriented economy with many international players and a growing import and export trade; - Ugandans are generally well educated, friendly and eager to work with foreign investors; - Good natural resource base including fertile soils, a good climate, mineral wealth, lakes and rivers as well as tourist attractions; - General security and respect for private property in the country. There are, however, a number of challenges that investors face, including a shortage of skilled (technical) workers, land-locked ness and related delays and costs in clearing goods, sometimes irregular utilities supplies, rebel activity in Northern Uganda, among others. Key statistics on Uganda appear in Annex 1. 1.2 Identification of Investment Opportunities There are opportunities to set up new investments or to acquire and modernise existing privately owned or government firms slated for privatisation. Below is a summary of key investment opportunities that could be investigated further by investors: Table 1: Selected Investment Opportunities in Uganda Sector Agriculture and Allied industries     Information and Communication Technology (ICT) Financial Sector              Investment Opportunities Commercial growing, processing and marketing of coffee, tea, tobacco, cotton, cocoa, horticultural products, silk, bananas, rice, sugar and maize. Livestock rearing (cattle, goats, pigs) and processing of products Fisheries, including fish farming, processing and export marketing Manufacture, importation and marketing of agricultural inputs, tools and implements Setting up of information and communication infrastructure Capturing and processing of data on behalf of foreign firms. Hardware repair, computer and related equipment service and assembly ICT training Establishing insurance and re-insurance businesses, commercial banks, mortgage and merchant banking Capital Market Development, Investment Advisory Services Settling and operating tourist infrastructure Acquiring concessions to manage existing tourist infrastructure Manufacturing of packaging products such as paper, cardboard, plastic, tin and glass containers. Textiles and garment manufacturing Setting up of post-harvest storage facilities, including cold rooms, ware houses, and refrigerated trucks Modern slaughter houses and processing of by-products Metal fabrication and light industry Tourism Industry DANIDA PSDP 6 INVESTORS’GUIDE 1.3 Steps in the Investment Process An investor would need to go through the following steps in order to get started in business: - Complete immigration formalities; - Register a business entity - Obtain an investment and trading licence - Acquire land/premises - Obtain license for sector or line of business - Recruit staff - Obtain utilities such as electricity and water systems - Register with tax authorities Chapters 3 to 10 of this Guide cover the above steps in more detail. DANIDA PSDP 7 INVESTORS’GUIDE 2 IMMIGRATION PROCEDURES Like in many countries, foreigners arriving into Uganda have to undergo certain formalities before they are allowed to enter or work in the country. These formalities are explained in this chapter, and more details can be obtained by visiting www.immigration.co.ug 2.1 Obligations, Formalities, and Restriction to Non-Citizens 2.1.1 Visas Visas are required for Danish citizens to enter into Uganda. Visas are processed at Uganda’s Embassies abroad and as well as at entry points. The process is straightforward and easy, once you have a valid passport, a return ticket as well as the required visa fees. The visa fees are set in US Dollars but you can pay the equivalent in local currency. Single entry visa is at US $ 30; multiple entries visa for six months is at US $ 80 and multiple entry visa for twelve months is at US $ 160. More details can be obtained by visiting www.immigration.co.ug/visa 2.1.2 Entry/ Work Permit Once in the country, an investor needs to apply for a work permit (technically called entry permit) before he or she can engage in any business or commercial activity. All applications for work permits should be submitted to the National Citizenship and Immigration Control Department Headquarters within the Ministry of Internal Affairs. The applicant should obtain a file number within a period not exceeding 10 working days. Thereafter the applicant checks to ascertain whether the application has been considered. Normally consideration of the permit does not exceed 30 working days. There are several classes of work permits, each with a different set of requirements. More details can be obtained from www.immigration.co.ug/workpermits Investors should note that the job for which the expatriate is to be employed should be specialized, and there should be no suitably qualified Ugandan individual available to fill the position. In addition, the company should have a program to train Ugandan personnel within the period of the work permit to enable them to replace the expatriate after the latter’s work permit expires. Any promoter engaged in a professional or specialized service (e.g., banking, auditing) is required to demonstrate a background and experience in that profession or service. The cost of the Work Permit varies depending on the class of the permit and ranges from US $50 - 750. Should the application for a work permit be rejected, the applicant can appeal within 30 days to the Ministry of Internal Affairs. A non-refundable fee of US $500 should be attached along with reasons why the appeal should be honoured. It is normal practice for investors to apply for a special pass as the work permit is being processed. A special pass takes 2-7 days to be approved, and it is valid for 3 months, with an option to renew it for a further 2 months. The requirements and procedure for obtaining a special pass can be obtained by visiting www.immigration.co.ug/specialpass. DANIDA PSDP 8 INVESTORS’GUIDE 3 SETTING UP A BUSINESS An investor may set up a company, a partnership or a sole proprietorship to carry out his business. The Ugandan law applicable to these forms of business organisation is based on English law, as amended from time to time. 3.1 Company Formation Introduction The Companies Act (Cap110) is the legal basis for the regulation of companies in Uganda. Upon incorporation, a company becomes a legal entity separate from its members, capable of suing and being sued in its capacity as such. There are different types of companies: 3.1.1 Table 2: Types of companies in Uganda Limited Companies Liability of Members/ Shareholders for the Company’s debts and other obligations are limited to the amount of unpaid share capital. Types of limited companies - Limited by Shares - Limited by Guarantee - Private Company - Public Company Unlimited Companies Members’/ Shareholders’ liability for the Company’s debt and other obligations is unlimited. a) In a Limited Liability Company, the liability of the shareholders or members is limited or restricted to the amount remaining unpaid on the shares issued or in case of companies limited by guarantee, to contribute a specified amount of assets of the company in the event of its being wound up. 1. Public Limited Liability Companies require a minimum of seven members. Their shares are freely transferable. 2. Private Limited Liability Companies require a minimum of 2 members and a maximum of 50. The Articles and Memorandum of Association restrict transfer of shares. This is the most favoured type of company in Uganda because it is more easily controlled. 3. Companies limited by guarantee are usually utilized by charitable organizations i.e. non profit-driven organizations. Such companies are required to register as nongovernmental organizations under the Non-Governmental Organisations Registration Act Cap113 with the Non-Governmental Organizations Board before they can register as companies limited by guarantee. b) In an Unlimited company, members are liable for the obligations of the company without any limitation on the amount payable. Members or shareholders will be called upon to contribute towards the discharge of the company’s debts. 3.1.2 Company Formation Before any company can begin operation in Uganda, it must become first and foremost an incorporated entity. Incorporation has several consequences and requires following a set of procedures. DANIDA PSDP 9 INVESTORS’GUIDE 3.1.3 Legal Consequences of Incorporation 1. Liability: a company has obligation for all its debts and liabilities. 2. Property rights: a company is able to own property separate from its members. It can acquire an interest in land in accordance with land tenure legislation. 3. Legal proceedings: a company can sue in its own names to enforce its rights at law. A company can also be sued in its names for breach of duties. 4. Perpetual succession: unless the company is wound up, it never dies. 5. Borrowing: a company can borrow and provide security for the loans. It can lend out money in accordance with the articles of association. 3.1.4 Table 3 Procedures for Incorporation  Reservation of company name: the promoters of the company select a name for the company. (Submit 3 names in order of priority). Reservation is done by writing to the Registrar of Companies or visiting the Registry of Companies and inquiring whether the proposed name is already in existence. The name should not be offensive to the public morality or contrary to the law. Memorandum of association: a memorandum of association of a company is required to be registered for purposes of incorporation. It deals with external affairs of the company. Articles of association: the article of association contains rules of managing the internal affairs of the company. Prescribed forms: a number of forms are required to be completed and filled with the registrar of companies. These forms are purchased at designated bookshops. Payment of stamp duty: stamp duty is calculated at a rate of 0.5% of the nominal share capital stipulated in the memorandum of association. Once paid, the Registrar of Companies then registers the memorandum and articles of association. Issue of certificate of incorporation: the Registrar issues a certificate of incorporation upon a successful registration and this is the last step of the process. Investors should ensure that they get enough copies of the registration documents for us in registering for tax purposes and at opening bank accounts in the country.      3.1.5 Choice between incorporation of a local company or registration of an existing foreign company A company that is already incorporated in another country may opt to register under Part X of the Companies Act. The company must submit the following requirements within 30 days of establishing a place of business in Uganda: a) A certified copy of the charter, statutes or memorandum and articles of the company. b) A list of the directors and secretary of the company c) A statement of all subsisting charges created by the company d) The names and postal address of one or more persons resident in Uganda authorised to accept on behalf of the company's service of process and notices required to be served on the company e) The full address of the registered or principal office of the company Once the required documents are registered, it is conclusive evidence that the company is registered as a foreign company and it has power to own property and do business as if it were a company incorporated in Uganda. There are reasons for and against opting to register a foreign company or incorporating a brand new one in Uganda. Registering a foreign company means you use the same documents and need not redraft them here and the process is shorter (2-4 days). However the cost of registration is US $470, in contrast to a maximum of US $25 for incorporating a new one. No stamp duty is required for registering a foreign company. DANIDA PSDP 10 INVESTORS’GUIDE 3.1.6 Pre-incorporation contracts The considered position in Ugandan law is that a company has no legal existence before its incorporation. A person who, therefore, purports to make a contract on behalf of company that is yet to be incorporated renders himself personally liable for such contract. Any contracts agreed or purportedly entered into on behalf of a newly incorporated company are formally executed and dated by the company after the date of incorporation for them to be effective in Uganda. 3.2 Other forms of business organizations A company is not the only form of business organization recognized under the Ugandan law. The various business organizations an investor can utilize are summarized in Table 4 below: Table 4: Summary of other forms of business organizations in Uganda Sole proprietorship  Business owned by one individual.  Full exposure and liability for the debts and other business liabilities.  Can exercise perpetual succession.  Main objective is profit for the proprietor Partnerships  A group of individuals/ companies owning one business.  Unlimited joint and several liabilities for each partner.  No perpetual succession.  Main objective is profit for the partners.  No corporate/ legal status.  Limited borrowing powers. Associations  A group of individuals/ companies pursuing common objectives.  Must have a constitution.  Normally liability extends to amount guaranteed.  No perpetual succession.  Usually the main objective is not profit driven  Rarely used as investment vehicles in Uganda. Cooperatives  Created and governed by the cooperative societies Act 1991 Cap112  Liability established by statute  Can exercise perpetual succession.  Corporate status  Main objective is community development. Public corporations  Government owned corporations.  Liability established by statute  Has capacity to borrow and own assets.  Can exercise perpetual succession.  Corporations created by specific legislation  Main objective is to some national interests.  Not subject to the requirements of the companies act.  Corporate status DANIDA PSDP 11 INVESTORS’GUIDE 4 INVESTING IN UGANDA 4.1 Introduction The bulk of the laws governing local and foreign investors in Uganda are consolidated in the Investment Code, which became law in 1991. Its main objective is to provide favourable conditions that promote both foreign and domestic investments in Uganda. The Code established the Uganda Investment Authority (UIA) as the autonomous regulatory body to promote and facilitate investments in Uganda. The UIA is a good source of essential information and free advice relating to investments in Uganda and will advise and assist investors obtain other licenses relating to their type of business (e.g. mining, banking, fisheries). It is advisable that before an investor begins the investment process he or she approaches the UIA, for free advice and information. More information can be obtained by visiting www.ugandainvest.com, www.ugandaivest.net 4.1.1 Foreign Investor Defined A “foreign investor” is defined as - a person who is not a citizen of Uganda; or a company in which a person who is not a citizen of Uganda holds more than 50% of the shares; or a partnership in which the majority of the partners are not citizens of Uganda. In addition, the UIA has the power to determine, in other cases, whether or not a person or entity fits in the category of a foreign investor. 4.1.2 Foreign Investment Restrictions Foreign investors can engage in any legitimate business in Uganda without any restrictions. Prior restrictions on acquiring land for crop or animal production have revised and the UIA has put in place provisional arrangements to permit and facilitate foreign investments in Uganda’s agricultural sector. There are also plans to amend or revoke these restrictions officially. 4.2 Investment Licence All foreign Investors require an Investment licence before their investments become operational. The licence contains the terms, conditions and incentives, if any, and other details as may be described. The application for an investment licence is obtainable from the UIA offices or website. Certain attachments are required to accompany the application, including: - A copy of the certificate of incorporation, - A copy of the Memorandum and Articles of Association; - A brief business plan describing the nature of the proposed investment, promoters and their background, manpower requirements, raw materials and other inputs, products/services, target market, technology to be imported or utilised, environmental issues, projected value of the investment, implementation schedule as well as overall contribution to the economy. - Evidence (e.g. from your local or overseas bankers) of ability to finance the project, which must be a minimum of US $ 100,000. - Annual reports, photographs, etc (if available) 4.3 Processing of the Application Preparing an application for investment licence and all the attachments can be simplified by seeking advise (free of charge) from the UIA, your prospective Bank Manager, or at a fee, from your audit or legal firm. Where UIA does not approve the application, a copy of the report and reasons for the refusal, is referred to the Minister for Finance, Planning and Economic Development. If within 90 days of submitting the application the applicant has not been notified of UIA’s decision, the applicant may lodge an application/complaint to the Minister. The Minister will within 30 days investigate the complaint and inform the complainant/applicant of the results of the investigation. DANIDA PSDP 12 INVESTORS’GUIDE 4.4 Priority investment areas An investor is free to invest in any type of legitimate business in Uganda. However some categories of business activities are stated to be priority areas under the Investment Code while investors are not encouraged to engage in petty trade and small-scale agriculture. Some of the priority areas for investment are summarised in Section 2.2 Table 1. 4.5 Special Allowances, Deductions and Tax Incentives In order to ensure certainty and uniformity of incentives, all incentives are provided for under the Income Tax Act 1997. The incentives provided for under the Act are investment and accelerated depreciation allowances. They are automatic and administered by the Uganda Revenue Authority, URA, as part of the general taxation system. More details can be obtained by visiting www.ugrevenue.com. It is therefore no longer necessary for foreign investors to seek a certificate of incentives from the UIA as shown below. Table 5: Selected Allowances, Deductions and Tax Incentives for Investors. ALLOWANCE SPECIAL ALLOWANCES (based on cost)  CATEGORY Initial Allowances on plant and machinery located in Kampala, Entebbe, Namanve, Jinja and Njeru Initial Allowances on plant and machinery located outside the above areas Start up costs spread over the first four years Scientific research expenditure Training expenditure Mineral exploration expenditure Initial Allowance on Hotel and Industrial Buildings RATE 50%  75%      25% 100% 100% 100% 20% ANNUAL CAPITAL ALLOWANCES ON DEPRECIABLE ASSETS (based on declining balance) Class 1 2 3 4 Depreciable Assets Computers and data handling equipment Automobiles, construction and earth moving equipment Buses, goods vehicles, tractors, trailers, plant and machinery for farming, manufacturing and mining Railroad cars, locomotives, vessels, office furniture, fixtures etc. Rate 40% 35% 30% 20% OTHER ANNUAL Item(s) Rate DANIDA PSDP 13 INVESTORS’GUIDE DEPRECIATION ALLOWANCES  Industrial buildings including Approved commercial buildings e.g. hotels and hospitals (linear method) 5%  Farming, general farm works (declining balance depreciation) 20% Note:   Investors who register with the U.R.A. as investment traders are entitled to VAT refund on building materials for industrial/commercial buildings. There are also first Arrival Privileges in the form of duty exemptions for personal effects and motor vehicles (previously owned for at least 12 months) to all investors and expatriates coming to Uganda. 4.6 Credit from Domestic Sources The Ugandan financial sector is fully liberalised and foreign investors can borrow money without any government intervention, i.e. Investors are free to approach any local or foreign bank and agree on terms. (See the Chapter 9 on Financial Sector). 4.7 Externalisation of Funds Foreign investors in Uganda are entitled to externalise (repatriate) funds for any purpose as and when they choose, without any restrictions or controls. 4.8 Protection of Foreign Investments The Investment Code provides that the interests of a licensed investor may not be expropriated, except in accordance with the Constitution of Uganda, and that compensation at fair market value must be paid within twelve months of any expropriation. The Constitution of 1995 provides for payment up front. To further protect foreign investment, Uganda has signed various bilateral and multilateral agreements and is a member of the Multilateral Investment Guarantee Agency (MIGA) of the World Bank, which ensures that foreign investors can insure their investments in Uganda against non-commercial risks including expropriation and civil strife. Investors can apply for MIGA through the UIA. The investment Code permits international arbitration in a form mutually agreed with the investor. In addition, Uganda has entered into investment treaties providing automatic rights to the Nationals of treaty states to recourse to international arbitration in the event of a dispute with the Government. For the local settlement of disputes, the Centre for Arbitration and Dispute Resolution is now operational and is based on internationally accepted rules and norms. More details can be obtained by visiting - www.cader.go.ug 4.9 Duration, Termination of Investment License The validity of the investment licence is five years from the date of issue, subject to renewal by the UIA. Should an investor be unable to commence operations within the period of validity of the licence yet fail to make an application for extension of the licence, then the UIA can nullify the licence and notify the holder of the licence accordingly. In the same vein, a foreign investment license may be revoked if an untrue statement is made in the application for the license, if the provisions of the Investment Code are breached, or if there is a breach of the terms and conditions of DANIDA PSDP 14 INVESTORS’GUIDE the license. In practice, the UIA rarely revokes licenses and relies instead on counselling to achieve corrective action. 4.10 Local authority trading licences Investors should note that under the 1997 Local Government Act, government has decentralised powers, including the power to levy, charge and collect fees, taxes, rates, royalties, stamp duty and registration / licence fees. Local authorities, such as Kampala City Council, now exercise these powers. Local Authorities issue Trading licenses for all businesses that wish to establish within their jurisdiction. The objective is to regulate businesses with respect to public health, safety, national security, environmental and natural resources protection, and land planning or zoning. In practice it is also used for revenue collection. Fees for the Trading License vary depending on the type of business, and are consistent among the various city council divisional offices. Obtaining a license takes 1 to 5 working days. Investors are advised to approach their nearest local authority to obtain application forms and be advised on licensing requirements for their type of business. DANIDA PSDP 15 INVESTORS’GUIDE 5 LABOUR LAW AND PRACTICE IN UGANDA 5.1 Introduction Ugandans are generally well educated, English speaking and easily trainable. The country does not have a history of labour disputes and industrial strike actions and many investors see existing labour regulations as favourable and unproblematic. Special investment allowances (100 per cent writeoffs) are given to Investors who invest in training local staff. Investors should, however, note that there is a shortage of good middle managers and technicians. Given this shortage, management and specialized technicians call for high pay. There is no minimum wage in force (although there is a possibility of introducing one). Wages are generally low. In the case of unskilled labour, the employer can pay for medical services, daily transport and lunch, while for expatriates and top management the employer will, in addition, the employer will agree with the employee on terms of remuneration package. An investor commencing operations in Uganda needs a basic understanding of how to recruit company employees. Employment opportunities are normally advertised in the national newspapers like The New Vision, and The Monitor. The Ministry of Labour also provides a free advertising service to employers. In addition, several employment agencies and consultancy/audit firms now operate in Kampala, and can be contacted to expedite and advise on recruitment matters. Working hours for both public and private sector are 8 a.m. to 1 p.m. and 2 p.m. to 5 p.m., Monday to Friday. Saturday is not ordinarily a working day for the Government and some business establishments. However, many local banks open on Saturdays and some international banks now open for 3-4 hours on the first and last Saturday of the month. Shops and supermarkets remain open seven days a week. An employee is entitled to 30 days’ sick leave per year at full pay and a further 30 days at half pay. Annual leave is a minimum of 21 working days in addition to all public holidays. Uganda celebrates public holidays on the day on which they fall and does not celebrate those falling on a weekend on the following weekday. Investors should also note Uganda is a strongly knit society and the extended family is important. In consequence, cultural and social expectations sometimes adversely affect labour productivity – for example, all adults are generally expected to attend funerals of relatives and friends and this may lead to a high incidence of absenteeism. 5.2 Legal requirements in Contract of Employment The law requires that the contract of employment specify a number of provisions, as shown in the Table 6 below: Table 6 Contract of employment – summary of legal requirements Law applicable: Exclusively the Employment Act governs local employees Foreign employees governed by the Citizenship/Immigration legislation and Employment Act If less than 6 months – can be oral but an employment card must be issued; 6 months or more – must be in writing Duration: - Prescribed provisions are as follows: Name and other details of employer and employees Job description. DANIDA PSDP 16 INVESTORS’GUIDE - Duration and method of calculating duration of employment. Remuneration levels and method of calculation. Conditions of repatriation back to original point of contracting Other conditions relating to contract of employment: Termination of contracts of service: Terms governing the termination of contracts of service have to be clearly stated in the contract. Summary dismissal: The Decree provides that the employer or employee can summarily terminate a contract of service for any lawful cause. Repatriation of employees: an employee who has been brought to the place of employment by the employer has a right to repatriation at the expense of the employer. Payment of wages to employees: Wages payable to an employee are usually paid in cash or by cheque at the end of the month. Hours of work: 48 hours per week. In addition, an employer is required to give an employee a weekly rest of at least twenty-four (24) continuous hours which, whenever, practicable should include Sundays. An employer is also required to grant his employees holidays with full pay. Employers are prohibited from employing women in underground work or from employing children below 18 years. Their employer upon production of a medical certificate showing that they are pregnant must grant women employee’s maternity leave. 5.2.1 The Workers’ Compensation Act 2000 According to the Act, workers who suffer work related injuries and diseases could claim compensation. Employers, therefore, need to ensure safety for their workers so as to minimize the dangers and risks exposed to their employees as well as the amount of compensation payable under the Act. 5.2.2 The National Social Security Fund (NSSF) The law requires investors to make compulsory contributions to the NSSF, exempt employees, above 55 years of age; non-resident employees; employees employed outside Uganda or those exempted by the Ministry of Labour, Gender and Community Development. Employers who employ less than 5 employees are also exempt. Contribution is – 10% of gross monthly wages to be contributed by the employer and 5% by the employee, payable every month. Other information on NSSF:  The NSSF requires all employers to register, even if those employing less than 5 employees will not be required to contribute  Categories of benefits under the NSSF include: Age benefit: payable to members who have attained the age of 55 years whether they are still working or not; withdrawal benefit; invalidity benefit; survivor’s benefit; immigration grant which is payable to the member if he is leaving the country permanently.  There are on-going efforts to break the monopoly of the NSSF and allow private pension schemes because investors feel the NSSF is not run on a commercial basis and potential beneficiaries lose out on the depreciating value of their savings. It seems a matter of time before this proposed change in the law take place. DANIDA PSDP 17 INVESTORS’GUIDE 6 TAXATION IN UGANDA 6.1 Introduction Uganda’s tax system is divided into Central Government and Local Government Tax structures. The principal taxes levied by the Central Government are income tax both on individuals and companies; Value Added Tax; Import Duty and Excise Duty, all administered by the Uganda Revenue Authority, URA. The URA is an autonomous body charged with tax administration in Uganda. Taxes levied by the Local Government include Graduated Tax, Ground Rates, and Trading and Operational Licenses. All registered business organizations are under obligation to send a provisional return of income to the URA for any year of income as follows:  Individuals: within 3 months of the end of the year of income for which such individual makes up his or her accounts and in any other case of an individual, not later than March 31 of such year of income;  Corporate bodies: within 6 months after the end of the year of income for which the body prepares the accounts and in any case not later than June 30 in such year of income. The returns are based on income of the year immediately preceding the year of income in respect of which the provisional return is made or on the last assessment which has by then become final and conclusive, whichever is greater. 6.2 Categories of Taxation Both direct and indirect taxes apply in Uganda. Direct taxes (e.g. Income Tax) are levied on individual and corporate income. Indirect taxes (such as Import Duty and Excise Duty) are levied on certain transactions such as sale and purchase of land, goods and services. 6.2.1 Income Tax Income tax is payable by individuals. It is calculated on the individual’s net assessable income after making allowance for deductible expenses. The sources of assessable income for individuals mainly include employment, business and property income. Different tax rates apply depending on whether the individual is a resident or non-resident of Uganda for tax purposes. Meaning of “ Resident” and “Non-Resident” A person qualifies as a “resident” of Uganda for tax purposes if:  the individual has a permanent home in Uganda  the individual is present in Uganda  For a period amounting 183 days or more in any 12 month period in any year of income,  During the current and in each of the 2 preceding years of income for periods averaging 122 days in each of those years of income.  the individual is an employee or official of the Government of Uganda posted abroad. DANIDA PSDP 18 INVESTORS’GUIDE Table 7: Income Tax Rates Taxable Income (Shs/Annum) 0 – 1,560,000 1,560,001–2,820,000 Rate of Tax (Residents) Nil 10% of the amount by which chargeable income exceeds Shs. 1,560,000 Shs 126,000 plus 20% of the amount by which chargeable income exceeds Shs. 2,820,000 Shs 546,000 plus 30% of the amount by which chargeable income exceeds Shs. 4,920,000 Shs 282,000 plus 20% of the amount by which chargeable income exceeds Shs 2,820,000 Shs 702,000 plus 30% of the amount by which chargeable income exceeds Shs 4,920,000 Rate of Tax (Non-Residents) 10% 2,820,001–4,920,000 4,920,001+ 6.2.2 Pay as You Earn (PAYE) Tax PAYE is an instalment income tax system under which employers are required to deduct tax instalments from their employees’ salary or other employment income. Computation of PAYE PAYE is calculated and remitted to the URA on a monthly basis. Computation is as follows: Table 8: Computation of PAYE Monthly Pay Less or equal to 130,000 More than Shs. 130,000 but less than Shs. 235,000 More than Shs. 235,000 but less than Shs. 410,000 More than Shs. 410,000 NIL 10% of the amount exceeding Shs.130,000 Shs. 10,500 + 20% of the amount exceeding Shs. 235,000 Shs.45,500 + 30% of the amount exceeding Shs. 410,000 PAYE Monthly Deduction 6.2.3 Taxation of Employment Benefits Benefits provided by an employer to employees are taxable. These include motorcars, housing, domestic servants, meals, refreshment, entertainment, and utilities in the place of residence of the employee. 6.2.4 Taxation of Companies A company is liable to pay tax separate from its shareholders, where a company is incorporated or registered in Uganda and its management and control is exercised in Uganda in a particular year of income, then such a company qualifying as a resident company is liable for taxation purposes. The sources of income of a company on which the tax can be levied include profits and gains from any business carried on for whatever period of time. Other sources include dividends from shares in other companies, and interest from use of the company’s property. DANIDA PSDP 19 INVESTORS’GUIDE Income Tax Rate of Companies The income tax rate applicable to companies other than mining companies is 30%. The income tax rate applicable to mining companies ranges between 25% and 45%. 6.2.5 Taxation of Partnerships Income tax assessments for a partnership can be made either in respect of individual partners or in the partnership's name. The profits of a partnership, including a firm carrying on a trade or profession are taxable. 6.2.6 Taxation of Small Business Taxpayers A small business taxpayer is defined, as a resident person whose gross turnover for a year of income derived upon carrying a trade or business is less than Ushs 50 million. The income tax payable by the taxpayer for a year of income is as follows: Table 9: Computation of Tax for a small business Gross Turnover Up to Shs 20,000,000 More than Shs 20,000,000 but less than Shs 30,000,000 More than Shs 30,000,000 but less than Shs 40,000,000 More than Shs 40,000,000 but less than Shs 50,000,000 Shs 100,000 Shs 250,000 or 1% of gross turnover which ever is lower Shs 350,000 or 1% of the gross turnover whichever is lower Shs 450,000 or 1% of the gross turnover whichever is lower Tax 6.2.7 Taxation of Trusts The income tax rate applicable to trusts is 30% of the chargeable trust income for the year of income. A trust is exempt from income tax:  Where income of the trust is paid directly to the beneficiary without passing through the hands of the trustee  Where a trustee relies on the ground that a share or part of income to be assessed accrues or arises for the benefit of the beneficiary. 6.2.8 Allowable Tax Deductions The Income Tax Act allows certain general and specific deductions from taxable income. These include meals and refreshments; bad debts; repairs and maintenance; training; charitable donations; travel expenses and medical expenses. More details can be obtained by visiting - www.ugrevenue.com 6.2.9 Provisional Tax All persons operating businesses are required to pay provisional tax based on past trends and future projections. In the case of companies, the tax should be paid in two equal instalments, at 6 months and 12 months from the start of the accounting period. For the final payment of corporation tax, Form IR2C called the final return must be completed. In the case of an individual, the tax is paid. DANIDA PSDP 20 INVESTORS’GUIDE 6.2.10 Taxation of Branch Profits of Foreign Companies In general, the taxable profits of a Ugandan branch of a foreign company are computed in the same way as those of a resident company. However, no deduction is allowed for interest, royalties, management charges, or professional fees paid by a Ugandan branch to its foreign head office. Such payments by a Ugandan subsidiary to its foreign parent company are deductible in principle, although the provision relating to transactions between related persons may be invoked to restrict tax avoidance through artificial inter-company pricing practices. Expenditure incurred by a branch outside Uganda is deductible only if adequate consideration is given. This rule applies particularly to executive and general administrative expenses, which are disallowed except to the extent that the Commissioner considers the expenditure just and reasonable. Restrictions apply also where a branch pays for services rendered by non-resident directors of a foreign company. Sales abroad by a branch of items that it manufactures, produces or grows in Uganda are deemed to generate income arising in Uganda. Such income is, therefore, taxable in Uganda. Although a branch does not suffer any withholding tax on remittances of profits to its head office, in contrast with a subsidiary, whose dividends to its foreign parent are subject to withholding tax), a branch pays corporate income tax at a higher rate than a locally incorporated subsidiary. In practice, most foreign investors prefer to set up a company in Uganda rather than a branch. 6.2.11 Double Taxation Relief Agreement between Uganda and Denmark The objective of this agreement signed in January 2000 was to create a bridge between the tax laws of the two countries and alleviate a situation where citizens were being burdened with taxes from both countries. It deals with income tax levied on international payments. It is based on the resident person taxation principle. The agreement provides that where a person is considered resident in Uganda for tax purposes, and his income is taxed both in Uganda and Denmark, then at the end of the year the person will receive a tax credit in Uganda equivalent to the amount deducted in Denmark The tax liability is decreased according to the proportions stated in the agreement. The same principle would be applied if the person were considered resident in Denmark. However either country must issue a receipt of acknowledgement to the relevant tax authority. It automatically applies to all persons belonging to signatory countries. Investors are advised to contact the URA through their audit / legal firm to ensure they benefit from this relief from Double Taxation. 6.3 Value Added Tax (VAT) VAT is a consumer expenditure tax. It is payable by individuals and firms. The business sales turnover threshold for VAT is Shs 50,000,000 per year. It does not matter whether the business is profitable or not. Even firms with less turnovers can voluntarily register for VAT. Registration for VAT is straightforward and free of charge. An applicant fills in a special VAT form, attaches company registration documents, and is allocated a VAT number within 2-4 days. 6.3.1 VAT Exemptions Certain goods and services are exempt from VAT. A person registered for VAT cannot claim an input tax on exempt goods and services. Similarly, such person cannot charge VAT (as an output tax) on goods and services exempt from VAT. Goods and services that are exempt from VAT appear in Annex 2A. 6.3.2 Zero Rated Supplies Zero rated supplies are goods and services which are exempt from VAT but in respect of which a VAT (output tax) is claimable. Zero rated supplies are also summarised in Annex 2B. DANIDA PSDP 21 INVESTORS’GUIDE All imported goods attract VAT of 17% or the Zero rate except if they fall in the exempt category. VAT on imports is paid at the time of clearing the goods and is calculated on the CIF (Cost Insurance, Freight) value of the imports. 6.3.3 VAT on Exports VAT on exports is Zero-rated. Investors interested in export trade are however advised to register for VAT. This is helpful in that the raw materials used to produce the exports, might attract VAT. 6.4 Stamp Duty This is an indirect tax levied on the commercial transactions listed below: Table 10: Schedule of Stamp Duty Transaction Company Incorporation or increase of share capital Transfer of stock or marketable securities Transfer of immovable property Lease Debenture or mortgage Stamp Duty 0.5%of share capital 1%of the value of stock or securities 1%of property value 1% of value of lease 0.5% of amount of the debenture or mortgage The government of Uganda is trying modernising the tax laws including those covering the stamp duty. The bill of amendments is to be tabled in parliament to review tax laws and enable them to suit international best practices. The changes will be effected in the next financial budget of 2004/05. 6.5 Taxation of Rental Income Rental Income of an individual is segregated from other income and is taxed at a rate of 20% of gross rental income in excess of Shs. 1,560,000 per year. 6.6 Withholding Tax Withholding taxes are a form of income tax deducted at source by one entity upon making a payment to another entity. In Uganda, there are three categories of withholding tax, the most significant of which is PAYE; the others are withholding tax on payments and earnings other than employment earnings and withholding tax on imports. This tax is deducted by receivers of services provided by contractors together with suppliers of goods and on goods imported at CIF. It is reimbursable at the end of the financial year on the presentation of the customs receipt. A summary of with holding taxes payable appears below: Table 11: Summary of Withholding Taxes in Uganda Resident (%) 6 0 15 15 15 6 6 0 15 Non-resident (%) 15 15 15 15 15 6 6 15 0 Payment Management and Professional Fees Royalties Rent or use of property Dividends Interest Imported goods Domestic local works Natural resources payments Pension/ Annuity A limited number of companies, which have established a track record of payment, are now exempted from withholding tax. DANIDA PSDP 22 INVESTORS’GUIDE 6.7 Excise Duty and Import Duty Excise duty and import duty are levied on different categories of products. The applicable rates of duty per product are spelt out in the Finance Bill Harmonized Tariff Code. Investors are advised to buy a copy of the latest version of the Tariff Code, updated every year, to be able to get the applicable rates of Duty. It should be noted that with the advent of the East African Customs Union, EACU (expected to come into force towards the beginning of 2005), imports into Uganda from outside of the East African Customs Union will attract a higher import duty typically 5-10% more than those imported from within. Over a 5-year period, the idea is to phase out completely tariffs on imports and exports within the Union, hence an incentive for investors to invest in Uganda and be able to access the markets of Uganda, Tanzania and Kenya. 6.8 URA Registration Requirements Investors need to familiarize themselves with Uganda Revenue Authority (URA) registration requirements. U.R.A. registration prior to the commencement of business operations is mandatory. Unincorporated bodies and individuals are expected to file a Preliminary Enquiry Form with the nearest URA office. For companies, the following are required in addition:  Completed Internal Revenue Company application Form, IR (CO);  Memorandum and Articles of Association;  Names and addresses of Directors and Shareholders; and  Copies of vending agreement (if an already established business has been purchased). Once the above process has been completed, and upon receipt of a file number, the investor can apply for a Tax Identification Number (TIN) by completing TIN application forms. Both businesses and individuals including foreign investors, for purposes of identification of taxpayers, fill TIN request forms. 6.9 Tax Objections and Appeals A taxpayer that is dissatisfied with a tax assessment can lodge an objection with the Commissioner of Income Tax who is required to review the assessment. If the taxpayer is not satisfied with the review, the investor can appeal to the Tax Appeals Tribunal. The Tribunal is a specialist tax tribunal that deals with disputes between the URA and taxpayers. Appeals lie to the High court from the Tribunal on points of law. More details can be obtained by visiting www.ugrevenue.com. DANIDA PSDP 23 INVESTORS’GUIDE 7 LAND TENURE SYSTEMS AND USE IN UGANDA An investor would need to know more about land ownership and the procedures governing purchase, acquisition, sell, mortgaging or otherwise dealing in land in Uganda. The Land Act 1998 Cap 227, including the Land Regulations is the principal land tenure legislation in Uganda. The Act contains principles such as rights of “bonafide” and “lawful” occupants who are given security of occupancy on land and rights of children and spouses in cases where land has to be sold, leased, subleased, mortgaged or dealt with in other forms. The Act establishes land tribunals, land committees and land boards for the purpose of administering land matters. The Land Act in Uganda provides four types of land tenure systems: - customary; freehold; mailo land; leasehold. 7.1 The Customary Land Tenure System The customary tenure is governed by customs of the people in a specific area. Any investor, local or foreign, acquiring land in a specific area under customary land tenure has to abide by the rules governing that area as far as acquisition and/or use of that land is concerned. Table 12: Summary of Customary Land Tenure Key Features  Unwritten law i.e. customary law, customs and practices of local community, regulates customary land tenure.  It is predominantly found in rural areas, unsuitable for bank security.  There are no time limitations on ownership and use of individually owned land.  Such land is usually unsurveyed, no certificate of title and has low value. Advantages  It is easily located and available in rural areas; ideal for large agricultural sector investments like ranching.  It is cheaper, yet fraudulent transfers are rare, mainly due to involvement of local government officials, elders and neighbours. Disadvantages  No certificate of title hence, verification of ownership can be complex, time consuming expensive and banks do not accept such land as collateral.  Proposed land use by an investor might conflict with customary law and established land use, customs and practices.  Access roads can be a problem and disputes likely. 7.2 Freehold Land Tenure System Freehold tenure system involves holding of registered land in perpetuity, i.e. no time limits (such as those for leases) apply. DANIDA PSDP 24 INVESTORS’GUIDE Table 13: Summary of Freehold Tenure System. Key Features  Ownership and use of land in perpetuity.  Evidenced by certificate of title.  Well-demarcated and surveyed land with survey maps and title deed plans included in the certificate of title.  Note: only available to Ugandan citizens. Advantages  Most secure form of land holding in Uganda.  Land ownership easily ascertainable.  Easily acceptable as loan security. Disadvantage  Non-Ugandan citizens are prohibited from acquiring freehold land. 7.3 Mailoland Tenure System “Mailo’ refers to the land system under which the colonial administration allocated large tracts of land in perpetuity (usually hundreds of square miles of land hence the term “Mailo” which in vernacular means “mile”) to local chiefs in Buganda to reward them for their support and key role in assisting the colonial administration to extend their rule in Buganda and other parts of Uganda. Mailo land is registered and held in perpetuity. Table 14: Summary of Mailoland Tenure Key features:  Evidenced by certificate of title hence, land well surveyed.  Separation of land ownership and developments on land made by “ bonafide” or “lawful” occupants.  Exercise of land ownership rights subject to the rights of “bonafide” and “lawful” occupants.  Available to Ugandan citizens only. Advantages  Reasonably secure form of land holding in Uganda and Land ownership easily ascertainable.  Acceptable as loan security. Disadvantages  Enjoyment and use of land-by-land owner subject to the rights of “bonafide” and “lawful” occupants.  Compensation for developments made by “bonafide” and “lawful” occupants an additional cost resulting in protracted and complex negotiations.  Non-Ugandan citizens prohibited from acquiring Mailo land. 7.4 Leasehold Tenure System Leasehold tenure is created either by contract or operation of law. The lease agreement sets out terms and conditions for the contracting parties. A direct date of commencement and a termination or expiry date of the leasehold period must be stipulated. In return for the occupation or use of the land, the land or lessor receives rent or premium from the tenant. DANIDA PSDP 25 INVESTORS’GUIDE Leasehold tenure is the optimal tenure available to foreign investors. A foreign investor can acquire a leasehold interest in land for not more than 99 years. Table 15: Summary of Leasehold Tenure Key features:  Created by contract or operation of law  Grant of exclusive possession and use of land to a tenant for an agreed period.  Payment of rent or premium by the tenant to the landlord.  Land use and possession is granted for a limited period. Advantages  Flexible renewable terms.  It is the optimal land tenure system available to foreign investors.  Acceptable as loan security depending on the unexpired lease period. Disadvantages  It does not confer title forever  It can be terminated before expiry if terms are breached. Non-citizen in the context of the Land Act: For purposes of the Land Act, 1998, a non-citizen means the following: 1 A person who is not a citizen of Uganda as per the rules laid down in the Constitution and the Citizenship Act; 2 In the case of a corporate body or other legal entity; a) If the majority of shares are held by non citizens; or b) Decision making in the entity lies with non-citizens Land acquisition/leasing: registered land The Registration of Titles Act Cap 230 governs Land acquisition and leasing of registered land. The seller or lessor of land must be in possession of a certificate of title. A certificate of title in the names of a party is conclusive proof of ownership of the land in question. Identification of land for sale or leasing An investor who desires to acquire land or an interest in land must first identify the land. Land for sale or lease is normally advertised in the national newspapers such as The New vision and The Monitor. An investor can also advertise the requirements for land in the same national newspapers. The investor can also utilize the services of estates agents, lawyers or investment consultants who usually have their own listings of land or properties for sale or lease. More details can be obtained by visiting www.ugandainvest.com, or www.ugandainvest.net. Identification of premises to let An investor may wish to rent premises for commercial, industrial or residential purposes. The terms and conditions of such a transaction are governed by a mutual contract and the parties are free to agree on terms and conditions. There is a clause for notice in case either party wants to terminate the tenancy. Should rent be in arrears for a specified period, the landlord has a right to distress for rent upon obtaining a court order to that effect. DANIDA PSDP 26 INVESTORS’GUIDE 8 ACCESSING UTILITIES IN UGANDA Accessing utilities in a timely and cost-effective manner is critical to investors the world over. Below is a summary of key information regarding electricity and water utilities. 8.1 Electricity The Ugandan Power Sector is governed by the Electricity Act 1999. Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Limited (UETCL) and Uganda Electricity Distribution Company Limited (UEDCL) replaced the former Uganda Electricity Board. More information on electricity can be obtained by visiting www.era.or.ug Application Procedure:  A formal application form is filled and submitted to the regional offices of the Uganda Electricity Distribution Board requesting for service. The above form must be supported by details of the proposed industrial or commercial project, and UIA Investment License (in case of foreign investor)  UEDCL reviews the forms submitted and dispatches a surveyor to assess the location of the proposed site in relation to the closest supply lines and to estimate the material requirements for a connection, factoring in the location, terrain, and UEDCL responds to the applicant and provides a quotation of the estimated “hook-up” costs along with the schedule of connection charges.  If the applicant accepts the quotation, then the UEDCL prepares an invoice for payment bearing VAT.  The applicant is required to pay the connection charges and initial/ security deposit covering one month of projected usage charges. The process of connecting and delivering service to a particular site may take between one and two months from the date of payment for standard connections. In cases where there is a considerable distance between the site and the existing supply lines, connections times may be considerably longer (2 – 4 months). The time and cost of access required to secure access to electricity may also be influenced by the need to negotiate and pay for “way leave” agreements related to land between the site and the existing supply lines. An investor or developer has the option purchasing their own equipment for electricity access and usage, provided that the equipment complies with UEDCL specifications. The UEDCL can issue customs permits to facilitate the duty free importation of this equipment. Once the equipment is installed, UEDCL assumes ownership of the equipment along with the responsibility for repair and maintenance. 8.2 Water and Sewerage The National Water and Sewerage Corporation (NWSC) is the primary provider of water and sewerage services in Uganda’s urban areas. Key information on water in Uganda can be obtained by visiting www.nwsc.co.ug. Application Procedure: It is advisable to contact NWSC to discuss access and service requirements at the time of site selection.  Applications form for service is submitted at NWSC regional offices. Applications must include the following supporting documentation:  Sketch plan  Site location DANIDA PSDP 27 INVESTORS’GUIDE    Estimated water use  Water quality requirements The NWSC reviews the application and conducts a site inspection to assess the availability of water at the locality, distance from the connecting point, and water pressure. It then prepares a connection estimate for the applicant. The fees for connection and a deposit on estimated usage are payable prior to connection. Note that connection time and installation costs are dependent on distance from connecting point, materials required, and size of the pipes. Investors/developers have the responsibility for contracting directly and paying for the equipment and construction work necessary for access. However, National Water Sewerage Corporation is responsible for the actual connection to the main pipes. DANIDA PSDP 28 INVESTORS’GUIDE 9 THE FINANCIAL SERVICES SECTOR. The financial sector is important to investors in that it offers investment opportunities and, at the same time, serves investors irrespective of the sector they have invested in. Supervision and regulation of the sector is by the Bank of Uganda (Central Bank), under the auspices of the Bank of Uganda Statute 1993 and the Financial Institutions Statute 2004. More detailed information on the financial sector can be obtained by visiting - www.bou.or.ug. 9.1 Commercial banks There are 16 commercial banks, 10 foreign-based and 6 local (May 2004). Commercial banking is concentrated in Kampala leaving rural areas largely under serviced. Standard Chartered, Barclays, Citibank and Stanbic Bank are some of the international banks that investors can use. Investors can open local currency or foreign currency accounts following the same international procedures one would use abroad. These big banks, however, insist on a deposit on opening the account, of US $ 500-1000 or its equivalent in Uganda Shilling, for opening a Dollar or Shilling account, respectively. 9.2 Credit and micro finance institutions There are 7 credit institutions undertaking deposit taking and lending business in Uganda. The institutions are privately owned, except the Housing Finance Company of Uganda. There are also several micro finance institutions (MFIs) operating in Uganda, and these provide small, short-term loans to micro, small and medium sized enterprises. 9.3 Development Banks There are three development banks in the country, namely:  East African Development Bank (EADB)  Uganda Development Bank (UDB)  The Development Finance Company of Uganda (DFCU) These provide long-term funds for development projects in different sectors, typically US $ 50,000 – 5,000,000 for an average of 10 years. 9.4 International financing institutions Larger loans can be accessed from the international financial institutions such as the International Finance Corporation (IFC). The IFC is member of the World Bank Group operating in Uganda. It encourages private sector activities through financing of projects; assisting in the mobilization of financing in the international markets; providing advice and technical assistance to business and governments; and providing a full range of financial products and services at market rate of interest, among others. The Commonwealth Development Corporation, CDC, promotes private sector investments in Uganda by: lending at a fixed rate interest, between 3-40 million pound sterling but not exceeding 30 per cent of total capitalization; and providing equity capital not exceeding 30% of the total project. 9.5 Other financial institutions Other financial institutions operating in Uganda include leasing companies, building societies and forex bureaux. In addition, the Bank of Uganda administers lines of credit through commercial banks for export and import credit and guarantees. More details can be obtained from the international banks operating in the country or by visiting – www.bou.or.ug 9.6 Capital Markets Development The capital market in Uganda is still in its infancy. However the necessary regulatory framework to enable investors to raise equity capital by way of company floatation has been put in place and, already, a number of local and multinational firms have already floated shares on the Exchange. A Capital Markets Authority and the Uganda Securities Exchange are the principal bodies responsible DANIDA PSDP 29 INVESTORS’GUIDE for the operations of the capital market in Uganda. Investors can approach them for more details as well as other regulatory issues. DANIDA PSDP 30 INVESTORS’GUIDE 10 ENVIRONMENTAL PROTECTION ISSUES: 10.1 Introduction The law requires investors to comply with national environmental standards set out for that purpose. The National Environment Statute 1995 Cap, the principal legislation on the environment set up the National Environment Management Authority (NEMA) as the principal autonomous body charged with regulation and control of environmental matters in the country. More information and guidance on environmental matters can be obtained by visiting www.nemaug.org. 10.2 Essential Steps It is a requirement for investors to comply with NEMA environmental standards before any investment project can take off. Investors therefore have to carry out an Environmental Impact Assessment (EIA) before project implementation (depending on whether or not the particular project is mandated to carry out one). The EIA Regulations, 1998, lay out the requirements and procedure for conducting an EIA. The licensing authority cannot issue a licence before the developer presents a certificate of approval from NEMA. The EIA is a structured process for gathering information about the potential impact on the environment of a proposed project and using the information, alongside other considerations, to decide whether the project should or should not proceed. Table 16: Projects requiring EIA  Urban development  Dams  Rivers and water resources  Aerial spraying  Mining  Forestry related activities  Waste disposal and natural conservation The EIA process involves a number of steps: Submission of a project Brief/preliminary assessment: This is a requirement for all the projects listed above. It should include:  Ecological considerations  Social considerations  Landscape considerations  Land use considerations Ten copies are submitted to the Executive Director who in turn submits them to the lead agency (principal sector regulatory agency) for comments. It is intended to show a brief description of the project and the impact the project is likely to have. Where the description indicates no serious impact on the environment or has provided sufficient mitigation measures, the Executive Director NEMA then issues a certificate of approval and the developer can be issued with a licence where such licence is required. However, where the Authority believes that the project is likely to have a greater impact than revealed or that mitigation measures provided for are not sufficient, then an Environmental Impact Study must be carried out. DANIDA PSDP 31 INVESTORS’GUIDE Environmental Impact Study (EIS): This is undertaken where the project is likely to have significant adverse impact on the environment. A developer is required to develop and design terms of reference upon which the EIS will be conducted and submit them to the Executive Director for approval. Upon approval, a person appointed by the developer and approved by the Executive Director conducts the study in line with NEMA’s published EIA guidelines. The developer in conducting the EIS is required to consult with the local community likely to be affected by the project. Environmental Impact Statement: At the conclusion of the EIS, the developer must make an Environmental Impact Statement. It contains the findings and recommendations of the study with particular emphasis on land use considerations, social considerations and sustainable use among others. The Executive Director submits a copy to the lead agency for comments. Public comments: The public is then invited to make written comments on the statement, which must be together with the findings. Based on all the above, the Executive Director can then make a decision to approve, reject or require the project to be re-designed. Table 17: Summary of Essential Steps For an EIA  NEMA notice to developer to undertake EIA  Development of Terms of Reference (ToR) for EIS  NEMA approval of ToR for EIS  Publication of project and meetings with affected local communities  Preparation of Environmental Impact Statement  Submission of Environmental Impact Statement to NEMA  Referral of Environmental Impact Statement to Lead Agency by NEMA  Invitation of comments from public  Public hearings for controversial projects only  Approval/disapproval of the project by NEMA  Issue of NEMA certificate of approval (for approvals only) Steps for projects that do not require EIA  Submission of project brief to NEMA  Submission of project brief to lead Agency by NEMA  Comments by Lead agency  Approval of project brief  Issue of NEMA certificate of approval. Environmental Audit This comes in after the commencement of the project. NEMA has the duty of ensuring that the project complies with the environmental standard throughout its life. To this end the developer has to ensure that all the predictions of the project brief and Environmental Impact Statement are complied with. Carrying out an environmental audit of the project confirms this. The Audit is carried out by person’s chosen by the developer whose names and qualifications must be approved by the Executive Director NEMA. DANIDA PSDP 32 INVESTORS’GUIDE Waste treatment and disposal The National Environment (Standards for Discharge of Effluent into Water on Land) Regulations SI No.5 OF1995 set out the standards for the discharge of effluent. The National Environment (Waste Management) Regulations, 1999 provide for the management of waste. A person who owns or controls a facility or premises, which generates waste, is required to minimise the waste by adopting cleaner production methods namely: eliminating use of toxic raw materials, reducing toxic emissions and waste, identifying and eliminating potential negative impacts of the product, enabling the recovery and new use of the product where possible and reclamation and recycling as well as incorporating environmental concerns in the design and disposal of the project. Implications of non-compliance Developers or investors should be cautious and ensure that they do not carry out any project without meeting the environmental standards set by NEMA. Failure to meet these requirements is an offence and the offender is liable to make right the wrong under the principle of “Polluter pays”. This means that the costs of pollution are borne by the person responsible for causing the pollution including the stopping, controlling or limiting of the pollution. Non-compliance can also result in NEMA ordering the closure or break up of the investment project. DANIDA PSDP 33 INVESTORS’GUIDE ANNEX 1 UGANDA’S SELECTED STATISTICS (2003 UNLESS INDICATED) (See also www.danishembassyuganda.dk, www.cia.gov, www.ubi.co.ug, www.enteruganda.com, www.myuganda.co.ug) 197,097 Sq. Km 43,942 Sq. Km Tropical, with 2 main rainy seasons (Sep-Dec and Mar-May) in most of country, annual average rainfall 1250mm, annual mean temperature 25ºC East Africa bordered by Kenya in East, DR Congo in West, Sudan in North, Tanzania in South and Rwanda in South West. Landlocked, mainly plateau, with many lakes and rivers 25% 9% 9% 28% 29% 90 Sq Km Copper, Cobalt, Gold, Zinc, Wolfram, Phosphates, Limestone, Salt, Arable Land, Lakes and Rivers, Hydropower, Petroleum (being explored) 12.1 million 12.6 million 126 persons/ Sq Km 3.0 % 44.9 years 88 per 1000 live births 18,575 persons 35% 64 % 12% 33 % 33 % 16 % 18 % English is the official language. Several local dialects used in different parts of the country Based on the English Law, and The Uganda Constitution Oct 1995 Uganda Shillings, UGX or Ushs 1700 (2004); 1800 (2002); 1644 (2000) 5 % per annum over last 2 years US $ 250 5.2 % 40% 9% 8.5% 12.5% 30% US $ 4.3 billion AREA AND LOCATION Land Area Water & Swamps Climate Location LAND USE Key features Arable Land Permanent crops Permanent pasture Forests and woodland Other Irrigated Land Exploitable Natural resources DEMOGRAPHY – per 2002 Census Males Females Population Density Annual Population Growth Rate Life Expectancy at birth Infant mortality rate Population per Physician Below poverty line Literacy rate Urban population RELIGIONS AFFILIATIONS Roman Catholic Protestant Muslim Other LANGUAGE LEGAL SYSTEM CURRENCY Exchange rates to 1 US $ INFLATION PER CAPITA INCOME GDP GROWTH RATE GDP BY SECTOR Agriculture Manufacturing Construction Wholesale and Retail Trade Other EXTERNAL DEBT (2002) DANIDA PSDP 34 INVESTORS’GUIDE MAIN TRADE PARTNERS Imports (origin) Kenya, United Kingdom, Japan, India, South Africa, United States of America, United Arab Emirates, Hong Kong United Kingdom, Kenya, Netherlands, Belgium, Denmark, United States of America, Germany, Switzerland. US $774 million – Coffee, fish and fish products, tea, gold, cotton, flowers, horticultural products, cobalt, tobacco, electricity, hides and skins, maize US $1.14 billion - capital equipment, vehicles, petroleum products, medical supplies, cereals, iron and steel GMT +3 hours July 1 – June 30 Exports (destination) EXPORTS (2003/4) IMPORTS (2002) TIME ZONE FISCAL YEAR DANIDA PSDP 35 INVESTORS’GUIDE ANNEX 2A GOODS AND SERVICES EXEMPT FROM VAT a) The supply of unprocessed foodstuffs, including agricultural livestock b) The supply of postage stamps c) The supply of financial services d) The supply of insurance services e) The supply of unimproved land f) The supply by way of lease or letting of immovable property other than a lease or letting of commercial premises g) A lease or letting of hotel or holiday accommodation lease or letting for periods exceeding two months; or lease or letting for parking or storing cars or other vehicles h) The supply of education services i) j) l) The supply of medical, dental, and nursing services The supply of social welfare services The supply of goods as part of the transfer of a business as going concern by one taxable person to another person k) The supply of betting, lotteries and games of chance including casinos m) The supply of precious metals and other valuables to the Bank of Uganda for the State Treasury n) The supply of passenger transportation services o) The supply of petroleum fuels (petrol, diesel and paraffin) p) The supply of computers, printers and accessories q) The supply of lifejackets and headgear r) The supply of mobile toilets and ecological toilets made from polyethylene. ANNEX 2B ZERO RATED SUPPLIES FOR VAT PURPOSES IN UGANDA a) Supply of goods or services exported from Uganda b) The supply of international transport of goods or passengers or of goods or services in connection with the international transport of goods or passengers c) The supply of milk, including milk treated in anyway to preserve it d) The supply of maize flour e) The supply of dental, medical and veterinary equipment and supplies f) The supply of seeds, fertilizers, pesticides and hoes g) The supply of educational materials DANIDA PSDP 36 INVESTORS’GUIDE ANNEX 3 INFORMATION REGARDING LAND TENURE SYSTEMS AND USE IN UGANDA 1. Conditions to be fulfilled before purchasing land. a) Consent of spouses and children: The Land Act prohibits the disposal of land from which the family ordinarily resides and from which they derive their sustenance without the prior written consent of the spouse and the children whether by way of sale, transfer, exchange, mortgage or lease. If the children are below the age of majority, the written consent has to be given by the local land committee. Without this written consent, a buyer acquires no title to the land. b) Title searches: An Investor needs to establish that the vendor has a “Clean” Title before he can proceed with a purchase or lease. Carrying out a Title search at the Land Registry Office confirms true ownership and whether the said land is free from other claims or encumbrances. A Title search is normally done through a lawyer. It costs no more than US$ 15 and can be done within a week. c) Payment of deposit and executing of sale agreement: The terms of payment for the land in question should be set out in either a sale or lease agreement as the case may be. The sale and lease agreements are normally drafted and witnessed by lawyers/advocates. The seller and the buyer have to sign the agreement. d) Caveats: A person claiming any interest in registered land, for instance a lease or mortgage can lodge a caveat with the Registrar of Lands. Any caveat lodged will be reflected on the certificate of title, on the encumbrances page. The caveat forbids the registration of any person as transferee or proprietor by way of a sale, lease, mortgage or any other interest on land. It costs in the region of US$ 50 to lodge a caveat and pay the legal fees. e) Instruments of transfer: A sale agreement or lease agreement does not by itself constitute transfer of the land sold or leased. The seller of registered land should sign an instrument of transfer to enable the buyer to have the registration of the land officially changed into the buyer’s names. The transfer form upon execution is registered with the Registrar of Land Titles. f) Assessment and payment of stamp duty: A transfer of land or lease attracts stamp duty, which must be paid before a transfer can be affected. The Uganda Revenue Authority (U.R.A.) assesses the stamp duty payable. The assessment is done after the land in question has been valued. The stamp duty payable on transfer of land is 1% of the value of such land. Once stamp duty has been paid, the original and the duplicate certificates of title are then presented to the Registrar of Land Titles to record the change. g) Registration of mortgages: Once a mortgage has been executed, the land title is deposited with the mortgagee. Upon payment of the prescribed fee and stamp duty, the Registrar registers the mortgage by indicating it on the encumbrances page of both the original certificate of title (kept in the registry) and the duplicate title presented by the mortgagee. h) Release of mortgages: a release of mortgage is executed upon the repayment of the debt. The mortgagee releases the land title and the release of mortgage document to the registered proprietor. The registered proprietor then presents the release of mortgage document and the title deed to the Registrar of Land Titles. Upon payment of the prescribed fee, the Registrar releases the mortgage. Acquisition of/ Leasing of Unregistered Land. a) Valuation and survey of the land: Ascertaining the size, ownership and location of unregistered land, is a longer and more complex process than for registered land. A paramount practical consideration for the investor is the need to ensure that the prospective seller of the land is the rightful owner under customary law and has full authority to sell or 2. DANIDA PSDP 37 INVESTORS’GUIDE otherwise grant user rights. This could involve negotiating with the other family members, neighbours and local community leaders. Valuation and survey of unregistered land is essential and recommended. A surveyor to do the demarcation of land and draw out a plan must be engaged. He makes a report, draws the plans on the general deed plan in the Ministry of Lands. The deed plan and the surveyor’s report are then taken to the drawing and mapping section in the Registry of Lands so as to give the land the block number and plot number. b) Registration: The next step is registering the land. The Registrar of Land Titles does this on presentation of the survey reports and title deed plans. In case of sale or lease of the land, the transfer has to be executed before the Registrar can issue a leasehold title. 3. Conversion of land tenure systems Land in Uganda is owned in accordance with customary, leasehold, freehold and Mailo land tenure systems. Subject to the limitations imposed by the Constitution and the Land Act, a person is free to opt for a particular land tenure system. Land holding under customary tenure on former public land can be converted into freehold land tenure. Likewise, a lease granted to a Ugandan citizen out of former public land can be converted into freehold. Table 16: Title searches and verification of title in Uganda: Some caution        Manual record keeping and file archiving system, hence expect some delays. Care and caution: titles for properties formerly owned by Asians expelled in the 1972 regime by the Late Idi Amin Dada. Watch out for fraudulent titles and titles issued in error e.g. 2 or more certificates of titles issued in respect of the same land. Carefully scrutinize powers of attorney for possible forgery-original documentation and verification by contacting witnesses etc. are recommended Insist on a certified title search extract from the registry of Land titles-particularly useful in disputes and litigation involving certificate of title issued in error. Poor survey and title deed plans-the use a competent and licensed surveyor to inspect the land and confirm survey coordinates and other boundary markings is highly recommended. Land held by an estate of a deceased owner-insist on original or certified grant of probate or letters of administration and confirms that all beneficiaries agree with the legal personnel representatives. Avoid dealing with estates if disputes are established. Table 17 Rights of tenants by occupancy and squatters on land “Bonafide” occupant means  A person who before the 1995 Constitution had occupied and utilized land or developed any land unchallenged by the registered land owner or agent for 12 or more years; or  A person who had been settled on land by the central government local government or an agent of either government prior to the 1995 Constitution. “Lawful” occupant means  A person occupying land by virtue of certain colonial legislation specified in the land Act: or  A person who occupies land with the consent of registered owner including the purchaser from the said person;  A person who occupies land as a customary tenant but whose tenancy was not disclosed or compensated for by the registered owner at the time of acquiring the certificate of title. Squatter means  A person who is in occupation of land without the consent of the registered owner and does not qualify as a “lawful” occupant. 4. Eviction of occupants and Compensation of “bonafide” and “lawful” occupants The law guarantees the occupation and possessory rights of the bonafide and lawful occupants. Therefore, to effect any development on such land requires the consent of the lawful or bonafide DANIDA PSDP 38 INVESTORS’GUIDE occupant. The occupant may agree to leave the land, subject to payment of compensation for his developments. Where the occupant consents to being compensated or “bought off”, the terms by which he will be bound need to be clearly stated in a written agreement. The investor should seek a qualified surveyor and valuer for assessing and determining the value of the developments for which the occupant has to be compensated. Once the occupants have been compensated or “paid off” and the date of vacation of land agreed upon has lapsed, they can be forcefully evicted for breaching the agreement. As a matter of practice, before the owner can apply for a court order to evict the occupants it is necessary to give them an eviction notice. If the occupants do not respond, the owner then files a suit (case) in court seeking for a court order. Once a court order is granted, the owner can then employ court brokers/bailiffs to evict the occupants. 5. Compulsory acquisition of land If a proposed foreign investment is in public interest it may be necessary to resort to compulsory acquisition of land under the Constitution and the Land Acquisition Act Cap 226. Procedure a. The land to be acquired should be identified by the investor. The local government of the area should then be briefed and requested to make a formal request to the Ministry of Water, Lands and Environment for the compulsory acquisition of the land in question. In order to streamline the process, all requests should be routed through the district council. The Ministry then survey and inspect the land for the purpose of satisfying itself that the land is required for the public purpose disclosed in the request by local government. The Ministry will then, in liaison with the District Council, mark out, measure and draw a plan of the land to be compulsorily acquired. b. A notice should then be published in the government gazette and exhibited at convenient places on or near the land clearly stating the Local Government’s intention to compulsory acquire the land, and stating where claims for compensation by any person with an interest in the land are to be lodged and by what date. This notice should be served on the registered owner or occupier of the land. c. On the date specified in the gazette notice, an inquiry should be held by the assessment officer into all claims for compensation and objections to the proposed acquisition. Offers of compensation should then be made to all persons with legitimate interests in the land. After payment of the compensation, the District Council or other Local Government organ should take possession of the land/or hand it over to the investor. The Ministry of Lands should then notify the Registrar of Titles or the district land board to register the land in question in the names of the district council or other local government organ. Thereafter the land can be transferred into the names of the investor in the usual manner. 6. Easements and other land use restrictions An easement is the right to use or restrict the use of land of another person. It is a proprietary right enjoyed by a landowner over the land of another. An easement can be created by agreement (e.g. agreement to reserve a right of way or a right to fetch water from a spring), statutes (e.g. those created under the National Environment Statute 1995, the Water Statute, 1995, the Electricity Act, 1995, and the Communications Act, 1997) or can be implied. These are easements of necessity; for instance, where an owner of land cannot access his land unless he passes through the land of another landowner. DANIDA PSDP 39 INVESTORS’GUIDE Other restrictions relate to water extraction permits: An investor who desires to construct any works for the purposes of water extraction and use is required to apply for a water extraction permit. An investor who is or proposes to be the owner or operator of any industry or trade which discharges or which will discharge effluent into the aquatic environment or on land, or is responsible for producing, storing, discharging or disposing of any waste, needs to acquire a water (waste discharge) permit. 7. Land administration There are various bodies set up to handle the administrative and technical land matters and transactions. These include: a) The Registrar of Land Titles: the office of the Registrar of Land Titles plays a key role in the processing and issuing of new certificates of land titles, including the recording of changes in ownership of land and leases. The Registrar is also responsible for documenting interests in registered land (e.g. mortgages, caveats and other encumbrances) upon registered land. Searches and certification of land titles are carried out in this office. b) Chief Government Valuer: The main function of the Chief Government Valuer in relation to land valuations is to provide land valuations. The land valuations form the basis for assessing the stamp duty on sale and other dealings in land. c) Surveys and Title Deed Plans Section: this office plays a key role in relation to the conversion of unregistered land into registered land. This section carries out surveying and/ or approval of survey plans and drawing of deed plans required before the Registrar can issue a Certificate of Title. It also keeps the General Title Deed plans. d) District Land Boards: District Land Boards hold, allocate and manage public land in the District. e) City, Urban and Local Government Councils: these are responsible for approving and overseeing the development plans in their particular areas of jurisdiction. They are responsible for zoning and manage land, which is vested in or acquired by the central Government. The Commission may sell, lease or otherwise deal with the land held by it. It can hold land rights, easements or other interest in government owned land. 8. Land disputes resolution In the course of transacting business in Uganda, disputes can occur. Redress in case of such disputes can be accessed from the Court system as explained below: a) Local Government Courts: Disputes of a customary nature e.g. destruction of a neighbours crops and compensation are normally handled by Local Council (LC) Courts. These are the LC1, LC2, LC3 and LC4 courts. b) High Court and Magistrates Courts: Disputes involving breach of contract, e.g. breach of lease or sale agreements or any civil wrong can be addressed to either Magistrate Courts or the High Court depending on the case or subject matter. Disputes involving subject matter of not more than U shs.5, 000,000 can be addressed to Magistrates Courts. Disputes, where the subject matter exceeds Ushs. 5,000,000 fall within the jurisdiction of the High Court. c) District Land Tribunals: The jurisdiction of District Land Tribunals is restricted to land matters. Local Council Courts and Magistrates Courts do not have jurisdiction in land matters. d) Appeals to the High Court and Higher Courts: Appeals from the District Land Tribunals are made to the High Court. DANIDA PSDP 40 INVESTORS’GUIDE e) Arbitration of disputes: Uganda law and practice recognizes arbitration. A centre for arbitration and dispute resolution (CADER) was established in 1998. CADER has developed both mediation and arbitration rules in line with the Arbitration and Conciliation Act 2000. Where arbitration and mediation of disputes locally is agreed, it is best to approach CADER for guidance www.cader.go.ug. DANIDA PSDP 41 INVESTORS’GUIDE Useful Links for further information Uganda Investment Authority (U.I.A) The Investment Centre Plot 28 Kampala Road, Kampala P.O.BOX 7418 Kampala, Uganda Tel: +256 (0) 41 251562/5, 251916, 251854/5 Fax: +256 (0) 41 342903 E-mail: info@ugandainvest.com www.ugandainvest.com www.ugandainvest.net Bank of Uganda (B.O.U) Plot 37/43 Kampala Road P. O. Box 7120 Kampala Tel: +256 (0) 41 258441/6, 258060/9 Email: info@bou.or.ug www.bou.or.ug Uganda Electricity Distribution Company Ltd (U.E.D.C.L) Shimoni Village Tel: +256 (0) 41 346199 Fax: +256 (0) 41 255600. Email: uedcl@infocom.co.ug National Water & Sewerage Corporation of Uganda (N.W.S.C) 6th Street Industrial Area P.O.BOX 7053, Kampala Tel: +256 (0) 41 232657 Email: commercial@nwscug.org. www.nwsc.co.ug. Uganda Telecom Ltd (U.T.L) Rwenzori courts, Lumumba Avenue Tel: +256 (0) 71 000222 Fax: +256 (0) 41 345907. E-mail: info@utl.co.ug www.utl.co.ug. Uganda Revenue Authority (U.R.A) P.O.BOX 7279, Kampala Tel: +256 (0) 41 250184 Fax: +256 (0) 41 259559 Email: uraprte@afsat.com www.ugrevenue.com National Environment Management Authority in Uganda (NEMA) Jinja Road Tel: +256 (0) 41 251064 Fax: +256 (0) 41 257521 Email: info@nemaug.org www.nemaug.org DANIDA PSDP 42 INVESTORS’GUIDE Centre For Arbitration 3rd Floor Crusader House Plot 3 Port Avenue P.O.BOX 25585 Tel: +256 (0) 41 254460 E-mail: info@cader.go.ug www.cader.go.ug Registrar of Companies Crane Chambers, Kampala Road, Kampala Ministry of Justice and Constitutional Affairs P.O.BOX 7151 Kampala, Uganda Tel: +256 (0) 41 233135, 230537/8/9 Fax: +256 (0) 41 232135, 254829 Email: registra@justice.co.ug www.justice.co.ug/company_reg.htm The Privatisation Unit 2nd Floor, Communications House Plot 1, Colville Street, Kampala P.O.BOX 10944 Kampala, Uganda Tel: +256 (0) 41 230300, 256467 Fax: +256 (0) 41 259997 Email: pmu@imul.com, info@perds.go.ug www.perds.co.ug Uganda Tourist Board (UTB) Plot 13/15, Impala House, Kimathi Avenue, Kampala P.O.BOX 7211 Kampala, Uganda Tel: +256 (0) 41 342196/7 Fax: +256 (0) 41 342188 Email: utb@starcom.co.ug www.visituganda.com Immigration Department Ministry of Internal Affairs Jinja Road, Kampala P.O. Box 7165 Kampala, Uganda Tel: +256 (0) 41 231031, 231641 Fax: +256 (0) 41 231188 Email: info@immigration.co.ug www.immigration.co.ug Ministry of Foreign Affairs Plot 9-11 Parliament Avenue, Embassy House, Kampala P.O.BOX 7048 Kampala Tel: +256 (0) 41 345661, 257525, 258252 Fax: +256 (0) 41 258722, 232874 Email: info@mofa.go.ug, mofa@starcom.co.ug www.mofa.co.ug DANIDA PSDP 43 INVESTORS’GUIDE Uganda Export Promotion Board (UEPB) 5th Floor, Conrad Plaza, Kampala P.O.BOX 5045 Kampala, Uganda Tel: +256-(0) 41 230233 Fax: +256-(0) 41 259779 Email: uepb@starcom.co.ug, info@ugandaexportsonline.com www.ugandaexportsonline.com Capital Markets Authority (CMA) 8th Floor Jubilee Insurance Centre Plot 14, Parliament Avenue P.O.BOX 24565, Kampala Tel: +256 (0) 41 342788 Fax: +256 (0) 41 342803 E-mail: info@cmauganda.co.ug www.cmauganda.co.ug Uganda Export Promotion Board (UEPD) Plot 17/19 Jinja Road P.O. Box 5045, Kampala Tel: +256 (0) 41 259779, 230233 Fax: +256 (0) 41 259779 Telex: 61391 UEPCM, E-mail: uepc@stacom.co.ug Uganda National Bureau of Standards (UNBS) Plot M127 Nakawa Industrial Area P.O.BOX 6329, Kampala Tel: +256 (0) 41 222367/9 Email: unbs@afsat.com www.unbs.org.ug Uganda Securities Exchange (USE) East African Development Bank Building Tel: +256 (0) 41 342818 Fax: +256 (0) 41 342841 E-mail: use@infocom.co.ug Uganda Tourist Board (UTB) IPS Building, 14 Parliament Avenue P.O.BOX 7211, Kampala Tel: +256 (0) 41 242196/7, Fax: +256 (0) 41 242188 Email: Website Private Sector Foundation (PSF) Plot 43 Nakasero Road P.O.BOX 7683, Kampala Tel: +256 (0) 41 342163, 230956 Fax: +256 (0) 41 259109 E-mail: prisf@stacom.co.ug www.psfuganda.co.ug DANIDA PSDP 44 INVESTORS’GUIDE Federation of Uganda Employers (FUE) Management Training and Advisory Centre Campus, Nakawa, Kampala P.O.BOX Box 3820 Kampala Tel: +256 (0) 41 220201, 220389 Mobile: +256 (0) 77 480097, 777410, 777411 Fax: +256 (0) 41 221257 Email: fue@infocom.co.ug www.employers.co.ug Uganda Manufacturers Association (UMA) Lugogo Show Grounds P.O.BOX 6966, Kampala Tel: +256 (0) 41 221034, 220698, Fax: +256 (0) 41 220285 Email: info@uma.co.ug www.uma.co.ug Uganda National Chamber of Commerce and Industry (UNCCI) P.O.BOX 3809, Kampala Tel: +256 (0) 41 258791/2, Fax: +256 (0) 41 251258 www.ugandachamber.co.ug Uganda Small Scale Industries Association (USSIA) Lugogo Show Grounds P.O.BOX 7725, Kampala Tel: +256 (0) 41 221785 Fax: +256 (0) 41 271038 E-mail: USSIA@starcom.com DANIDA PSDP 45 INVESTORS’GUIDE Other links: Uganda Business Index Lugogo Show Grounds Jinja Rd Kampala Uganda P.O.BOX 6966 Kampala Tel: +256 (0) 41 287612/5 Fax: +256 (0) 41 220285 E-mail: information@uma.co.ug www.ubi.co.ug Enter Uganda www.enteruganda.com My Uganda www.myuganda.co.ug Africa Online 5th Floor Commercial Plaza Plot 7 Kampala Rd P.O.BOX 29331, Kampala Tel: +256 (0) 41 258143 Fax: +256 (0) 41 258144 E-mail: info@africaonline.co.ug www.africaonline.co.ug News Papers: The New Vision P.O.BOX 985 Tel: +256 (0) 41 344191 Fax: +256 (0) 41 235843 Kampala-UGANDA news@newvision.co.ug www.newvision.co.ug The Monitor, P.O.BOX 12141 Tel: +256 (0) 41 232367 Fax: +256 (0) 41 232369 Email: monitor@imul.com www.monitor.co.ug The East African P.O.BOX 6100 Tel: +256 (0) 41 232771/2 Fax: +256 (0) 41 232781 Email: eastafrican@nation.co.ke DANIDA PSDP 46 INVESTORS’GUIDE