Sunday, 20 March 2022 06:00

How govt will earn from oil, gas sector

What you need to know:

  • Income. Government has provided a number of taxes under the Income Tax Amendment Bill through which Uganda will earn from the oil and Gas sector as a country.  

Now that the oil development stage has started, it is easier to connect the dots on how the private sector will directly benefit from the resource. 

A number of contracts have been drawn while hundreds or even thousands of others, are still in the pipeline. 

However, beyond individual or company level benefits, the question is; how does Uganda, as a country, earn from the oil and gas sector?

Pamela Natamba is the head of oil and gas division at PricewaterhouseCoopers (PwC). 

In her assessment, as a country, during the development stage, Uganda will mainly earn through taxes, given that there will be no commercial production until 2025. 

Therefore, she notes, such earnings have been provided for in the Income Tax Amendment Bill, which particularly focuses on the oil and gas sector. 

“That Bill has made specific provisions, but one of them which is very interesting is it introduces a Windfall Tax,” she says and notes that this tax will apply to licensees that have signed Petroleum Sharing Agreements, many of which have been involved in exploration up to the point of production. 

These, she says, include large companies such as TotalEnergies, CNOOC and Uganda National Oil Company (UNOC), among others. 

What the Bill puts in place, Natamba says, is that as long as you earn revenue in excess of a certain amount, you will be subjected to a Windfall Tax. 

For instance, she explains, if international oil prices are expected to go for a certain amount you a company sells beyond what has been projected, the expectation is, the company will pay an extra tax over and above 30 percent. 

 

Published in Energy

Kampala. East African governments have renewed efforts to bring the betting industry under strict control amid claims of tax evasion and fears of a growing gambling culture and addition among the youth, who are mostly unemployed.
Kenya and Uganda have moved to vet industry players with threats of revocation of licences to tame the proliferation of betting, gaming and gambling outlets.
Despite imposing a punitive tax regimes, restricting the importation of gaming devices and impounding and burning gambling machines, the sector has continued to record growth.
Uganda levies a 35 per cent tax on betting, while in Kenya, the same was reduced to 15 per cent after lobbying by sector players.
While both countries have resorted to drastic measures to contain a sector that has largely become a social and economic menace, Tanzania enacted a strong regulatory framework through the Gaming Act, 2003.
In the 2017/18 financial year, Tanzania collected $36 million from gaming and betting.
But religious leaders recently lobbied President John Magufuli to ban betting altogether to control addiction among the youth.

Suspension
Just this week, Kenya announced that licences for all betting agencies stand suspended as from July 1, and that their renewal will be subject to proof that the companies are tax compliant.
President Museveni recently directed the Ministry of Finance to stop licencing sports betting, gaming and gambling companies due to the negative effects the industry is having on the youth.

Growing numbers 
A recent GeoPoll rapid survey carried out among youth between the ages of 17 and35 in Kenya, Uganda, Tanzania, Ghana, Nigeria and South Africa show that millennials in sub-Saharan Africa spend $50 monthly on betting through their mobile phones.

Source: Daily Monitor

Published in International

REGIONAL LEGISLATORS PUSH FOR DISASTER PREPAREDNESS IN LIGHT OF CLIMATE CHANGE

.....House adopts Report on Regional Parliamentarians Policy Workshop on Climate Change and Gender

 

East African Legislative Assembly, Kampala, August 27 2015: A key policy report on Climate change and gender is calling on Partner States to promote pro-active approaches through adequate preparedness and appropriate strategies in light of climate change.

 

The Report which follows a regional Parliamentary workshop held in Burundian Capital, Bujumbura in March 2015 was this afternoon debated and approved by EALA.  The Report was presented by the Chairperson of the Agriculture, Tourism and Natural Resources Committee, Hon Christophe Bazivamo.

The Report says that approaches such as early warning systems and modalities for flood and drought management need to be inculcated.  Closely related to this aspect is the need for the Partner States and the East African Community to advocate for strong institutional and governance structures.

In addition, the Assembly is of the view that the Secretariat invests in climate/disaster focused research and tools Participatory Capacity and Vulnerability Analysis (PCVA) to boost the preparedness of the region.

The objectives of the workshop was to create awareness amongst Members of EALA on the critical cross-cutting subjects of climate change and gender; and to consider existing international and regional policies, strategies and regulatory instruments and frameworks on climate change and gender. At the same time, the workshop sought to identify the role of Parliamentarians in implementation of Gender Sensitive Climate Change Policies and Practical measures.

 

In the past, EALA has passed several environmental Bills including Transboundary Ecosystems Management Bill (2010), the EAC Polythene Material Control Bill, 2014. The EAC Disaster Risk Reduction and management Control Bill (2014) is under consultation.  Work has also commenced on the EAC Climate Change Bill and a Climate Change Fund.

During debate today, Hon Abdullah Mwinyi called for demarcation of specific areas for cattle keepers so that enough fodder is realized and sustainability is realised. 

We need a recommendation to that effect from the report such that it adds to the dimension of Climate Change and Gender.  "Farmers are predominantly women while cattle keepers are pre-dominantly men", he said.  "There is need for a region-wide policy to deal with any imminent clashes that may arise", he added.

Hon Mumbi Ngaru said natural and man-made events both contribute to Climate Change.  "We have the Disaster Risk Reduction Bill pending before the House. It needs to brought forth immediately by the Council of Ministers", she said.

Hon Susan Nakawuki lauded the city Council of Arusha for greening the City by planting more trees.  We should all borrow from the successes of the City.

 

She called on the Partner States to ensure the EAC Climate Change Fund received funding.

 

Hon Valerie Nyirahabineza said the Assembly could champion the importance of the Climate Change Fund.  "As an Assembly, we can support the Fund in a symbolic manner", she said.

 

Hon Dora Byamukama, Hon Dr. Odette Nyiramilimo and Hon Sarah Bonaya also supported the Report.

-ENDS-

Source: EAC Press

Published in Shout
Monday, 26 January 2015 00:00

Archbishop Ntagali sued

Archbishop Stanley Ntagali has been dragged to the High court for allegedly forcing former Kitgum Bishop Benjamin Ojwanga into early retirement.

Rev Canon Samuel Obol, Rev Laban Awor, Canon Omony Ogabo and Arthur Katongole last week asked court to allow them to file a representative suit against Ntagali, the board of trustees of the Church of Uganda and the house of bishops.

In their application, they allege that last month, at the urging of the house of bishops, Ntagali ordered Ojwanga to retire prematurely from his position.

“There are thousands of Christians in Kitgum diocese and in the church of Uganda generally who are opposed to the unlawful actions and the decisions of the respondents to remove the Right Rev Ojwanga from his office as the bishop of Kitgum diocese or any other bishop for that matter without following the cannons of Uganda, the laws of Uganda and the principles of natural justice,” the application reads.

Through Opwonya and company advocates, they say that ever since Ojwanga was elected bishop of Kitgum in the year 2000, some clergy were not happy with his election.

According to the four, in the recent past, many dioceses of the Church of Uganda have been experiencing restlessness caused by sections of Christians pushing for the removal of their bishops since some have been removed prematurely for various reasons.

In his affidavit in support of the application, Rev Obol, the lead applicant, says his passion is to help prevent the Church of Uganda from imploding due to internal contradictions.

“The instability has been created because the tenure of bishops is not clear, which has led several Christians to revolt. When some rebellious Christians generate pressure in various dioceses, they demand the removal of their leaders hence sometimes the church doesn’t follow set rules,” Obol states.

The applicants want court to issue a permanent injunction restraining Ntagali from installing Benoni Ogwalo as a caretaker bishop in Kitgum.

Source: Observer.ug

Published in Lifestyle

KAMPALA. At 8am on Saturday, my phone rang. The caller was precise and to the point. She had a breaking story of national importance.
“I want you to break that story. You can take my word that no other journalist both here and outside Uganda has it, you are the only one I am telling and please don’t break my trust,” she said.
The anxiety and excitement that comes with breaking a story is one that sends the adrenaline surging; only one who has practised as a journalist can know.
What was the story? The source was not ready to share for now. She laughed and said, “It is a big one, I will call you later.” Up until the afternoon, every phone call that came through stirred immeasurable anxiety.
True to her word, she called in the afternoon, saying: “The story is that Gen Sejusa is coming back to Uganda tonight. I have done my part. Do the rest. He lands at 10pm.” The source, however, requested that the story is only broken after the general had landed. Anything short of that would be breach of trust.
As I briefed the news editor, I could see his excitement, albeit restrained. The idea was that Sunday Monitor would change its late edition after the general’s flight had landed.
“We shall be on standby so go to Entebbe and text us when you see him, and then we shall change the cover,” the editor said. As I struggled to fight the excitement of being the first to tweet and post on Facebook about the general’s unannounced return. I received information that there were changes in the flight arrangements. Gen Sejusa would land between midnight and 1am.
I tipped off a senior colleague and photojournalist, hopped onto a company car and cruised to Entebbe, having our dinner at Lubowa. We kept resisting the urge to inform colleagues from other media houses and praying this was no hoax. This was a high-level operation.
By 2am, we were at the airport’s arrivals lounge. There was no security deployment. Gen Sejusa’s sister, whose presence we had learnt about, kept pacing about and making phone calls. We also saw renowned human rights lawyer Ladislaus Rwakafuzi making endless calls.
We approached Mr Rwakafuzi, who told us Gen Sejusa was his client. We also learnt that the Chief of Defence Forces, Gen Katumba Wamala, was at the airport en route to Nairobi while the Police Director for Operations, Mr Andrew Felix Kawesi, was also around “positioned strategically”. Meanwhile, the presidential convoy had bypassed us at Zana on the Entebbe highway, at about 11pm headed to Kampala.
As we waited for the general’s arrival, I could not help but wonder. “Would he be arrested? Would it be smooth sailing for him? Will he speak to us? What if he does not turn up anyway?”
These were the questions I battled with when at 3.13am, information came that Gen Sejusa had landed and was at the VIP lounge. We could see Mr Rwakafuzi and Brig Ronnie Balya, the head of internal intelligence, at a distance. They were watching as Gen Sejusa’s sister hugged him.
My colleague Isaac Imaka and I were the first to tweet about what we were seeing. I also made the announcement on my Facebook and Daily Monitor walls.
We realised we would not be allowed near him. We called Mr Rwakafuzi asking if he could link us up. The general first accepted before declining and instead dictating a brief message through Mr Rwakafuzi, asking that we relay it on KFM, our sister radio station. It was a request we could not honour at the odd hour of 3am.
Even if we had not gotten a detailed interview, we knew we could wake up with a scoop of a photo. As our photojournalist, Faiswal Kasirye, positioned himself strategically at the VIP Parking yard, ready to take a shot of Gen Sejusa boarding the waiting car, something happened. In a split second, the general was whisked away—leaving Kasirye helpless. He had missed the shot of a lifetime!
Later, Mr Rwakafuzi would announce that the sleek jeep was taking Gen Sejusa to Sembabule. The clandestine mission was over. Our photojournalist was dejected but we encouraged him—saying we could still find solace in the fact that we had broken the news first. We had not braved the cold Entebbe in vain.

politicians react to gen sejusa’s return

‘He did nothing wrong, he just wants to express his opinion and there is nothing wrong with that. I like him. Everyone wants to live home. Those making noise on social media speculating that he could have fooled them are the ones with problems because everyone is free to speak their mind,’
Brig Kasirye Ggwanga, presidential adviser on security in Buganda

‘I woke up to the stunning news and it was like a dream. If it was April 1, I would have thought it was a fools’ day prank. His return is as dramatic as his exit was. It is too early to judge this enterprising development, so many things do not add up. Is he on amnesty? It is hard to tell what is happening,”
Erias Lukwago, kampala lord mayor

“I am very happy that he has returned to Uganda.We should live here and solve our issues in Uganda, especially those of us who went to exile once. We should not put other Ugandans in a situation where they have to go to exil,”
(Rtd) Col Amanya Mushega,
FDC Western region Vice president

Published in Lifestyle

Nairobi- Kenya president Uhuru Kenyatta convened three crucial meetings last week during which it became apparent that Interior Cabinet Secretary Joseph Ole Lenku and police chief David Kimaiyo could no longer remain in office, it has emerged.

The president has lately come under immense pressure over the failure by his security organs to tame banditry and terrorist attacks that have rocked the country.

Last Wednesday morning, president Kenyatta convened a meeting of the National Security Council (NSC) to discuss the reasons why security agencies had failed to detect and pre-empt the attacks, top government sources said Tuesday.

It is understood that the president and his deputy, Mr William Ruto, were furious that despite the government investing billions in equipping the police and increasing their numbers, cases of fatal attacks on Kenyans were on the increase.

Others who attended this meeting were outgoing Interior CS Mr Lenku, the just retired Inspector-General of Police, Mr Kimaiyo, Chief of Kenya Defence Forces Gen Julius Karangi, Interior Affairs Principal Secretary Monica Juma, Deputy Inspector Generals of Police Grace Kaindi, Samwel Arachi, National Intelligence Services director Philip Kamweru and CID director Ndegwa Muhoro.

Sources said Mr Lenku, Mr Kimaiyo, Gen Karangi and Maj Gen Kamweru were given opportunities to explain their achievements in preventing the attacks, where they had failed and reasons for the failure.

The four were also required to give suggestions on how they planned to improve so as to stop the killings, either by bandits or terrorists.
Apart from the challenges brought about by the Constitution, sources close to the meetings told the Nation that it became clear Mr Lenku and Mr Kimaiyo had also failed to collaborate in fighting crime.

“Questions were raised regarding their abilities to lead the dockets they held,” sources said.

Last Thursday at 6.30am, President Kenyatta and his deputy held another meeting at State House with Mr Lenku and Mr Kimaiyo where the two were asked to give suggestions on how they planned to improve their performances.
They were also asked if they would opt to quit their positions in the face of the difficulties they faced.

At the end of this meeting, it became clear to the president and his deputy that the two men tasked with the duty of keeping Kenyans safe and secure were not up to the task. It is understood the Jubilee leadership was convinced that Mr Lenku and Mr Kimaiyo had to go.

Around noon, President Kenyatta and his deputy held a Cabinet meeting where among other issues, the matter of insecurity and killing of Kenyans was broadly discussed. Even a brief from the Presidential Strategic Communications Unit never touched on insecurity.

This was after it was agreed that the security organs engage teams of the Senate and the National Assembly to amend any laws that make it difficult for them to be effective in their work.

In his speech on Tuesday, President Kenyatta confirmed: “In light of this, I directed my government’s security actors to engage with the members of the relevant committees of the legislature last week with a view to rectify administrative and legal hurdles that limit our ability to deal with the very real and existential threat that we face.”

Tuesday’s killing of 36 quarry workers in Mandera prompted immediate action from the president who chaired a special Cabinet meeting in the morning and which explains the sudden resignation of Mr Kimaiyo and the replacement of Mr Lenku with Kajiado Central MP Joseph Nkaissery.

Source: Daily Monitor

Published in Lifestyle

The 3rd East African Community (EAC) Academia-Public-Private-Sector Forum opened today in Kigali, Rwanda, with a call by His Excellency President Paul Kagame to the stakeholders to redesign and streamline the region's economic development approaches to meet the high expectations of the East African people.

President Kagame, who was represented by his Minister for Education Prof. Silas Lwakabamba at the official opening of the Forum, challenged the Academia-Public-Private Partnership to take advantage of the commitment of the EAC Partner States, as stipulated in Articles 79 and 80 of the Treaty for the Establishment of the EAC, in which the role of innovation is broadly spelt out.

The President urged the participants to borrow a leaf from other global experiences, whereby emerging economies and transition countries have increasingly recognized that knowledge, new technology and innovation were crucial elements for driving systematic and progressive socioeconomic development, and were vital for promoting a country's or region's competitiveness in the international economic order.

President Kagame commended the leadership and the entire Inter University Council for East Africa for their invaluable contribution through the development and implementation of various higher education harmonization strategies, frameworks, guidelines and standards, the impact of which will steer the region into a common higher education area.

The President also commended the Private sector through the East African Business council for playing its role as the key pillar in supporting the socio-economic development agenda of the EA, and in moving the regional integration forward.

The Chairperson of the EAC Council of Ministers, Hon. Phyllis J. Kandie, who was represented by Kenya's High Commissioner in Rwanda His Excellency John Mwangemi said the Forum came at a time when the EAC Partner States had great desire to transform their economies into a knowledge-based which could only be achieved and sustained by the development of a strong innovation system.

The Chairperson noted that there was urgent need to redesign the training curriculum and the way it is delivered so that the education and training systems are able to churn out graduates who are creative, innovative and entrepreneurial.

The Secretary General of the East African Community, Amb. Dr. Richard Sezibera is confident that Academia-Public-Private Partnership will take advantage of the available political commitment and enabling legal framework at the national and regional levels to drum-up and consolidate views of stakeholders to achieve the short and long term goals of the socio-economic development agenda of the Community.

Amb. Sezibera emphasized that the people of East Africa were eagerly looking forward to the impact and outcome of this partnership to transform the regional economies; promote industrialization and improve the livelihood of the common citizens.

The Chairperson of the East African Business Council, Mr. Felix G. N. Mosha noted that a new paradigm calls for effective interaction between Universities and the private sector to put East Africa in the main stream of technological revolution that would enable SMEs and large corporate entities alike to generate and use knowledge in order to achieve their innovative potential.

Mr. Mosha said collaboration between the private sector and the academia was an effective, practical and realistic way to carry out such development work, in addition to building the region's innovation capacity and intellectual capital.

The Executive Secretary of the Inter-University Council of East Africa (IUCEA) Prof. Mayunga Nkunya, disclosed that the Forum was geared towards coming up with practical strategies for implementing academia-public-private partnership platforms in the EAC to spur socio-economic development.

The delegates attending the Forum are drawn from the EAC Secretariat and Institutions, heads of higher education institutions, national commissions and councils for higher education, and national commissions and councils for science and technology, government institutions and ministries, international organizations, NGOs, academicians, students, private individuals, businessmen, media and stakeholders in academia and the private and public sectors in the Partner States.

The IUCEA, East African Business Council (EABC) and East African Development Bank (EADB) have jointly organized this year's Forum under the theme: "Harnessing East Africa's Innovation Potential". 

 

Prof. Silas Rwakabamba, Amb. Sezibera and HE Mwangemi tour the Exhibitions
Prof. Silas Rwakabamba, Amb. Sezibera and HE Mwangemi tour the Exhibitions

Notes to Readers:

In 2011, the IUCEA and EABC entered into a partnership aimed at providing the point of connection between knowledge and human resources produced by higher education institutions in the region on the one hand, and the dissemination of the same to the private sector for their eventual diffusion into the productive, social and service sectors on the other.

The partnership focuses on (i) enhancing linkage between the private sector and higher education institutions; (ii) promoting the utilization of higher education research output and innovations by the private sector/business community; (iii) promoting consultative engagement in curriculum and research development and implementation; and (iv) jointly organizing dialogue forums and exhibitions.

The first Forum was dubbed "Higher Education Forum and Exhibitions", in Arusha, Tanzania in October 2012 followed by  "Academia – Private Sector Partnership Forum" in Nairobi, Kenya on 24th – 26th October 2013, during which time the East African Development Bank (EADB) joined in as another partner.

Published in News
21ST MEETING OF THE SECTORAL COUNCIL OF MINISTERS RESPONSIBLE FOR EAC AFFAIRS AND PLANNING ONGOING IN KIGALI
21ST MEETING OF THE SECTORAL COUNCIL OF MINISTERS RESPONSIBLE FOR EAC AFFAIRS AND PLANNING ONGOING IN KIGALI

21ST MEETING OF THE SECTORAL COUNCIL OF MINISTERS RESPONSIBLE FOR EAC AFFAIRS AND PLANNING ONGOING IN KIGALI

 East African Community Headquarters, Arusha, Tanzania, 27 October 2014:  The 21st Meeting of the Sectoral Council of Ministers responsible for EAC Affairs and Planning (SCMEACP) is currently underway at the Lemigo Hotel in Kigali, Rwanda.

 The meeting is considering the status of implementation of Previous Decisions of the SCMEACP; progress report on the status of implementation of the EAC Common Market; status of the EAC Institutional Review.

 The meeting will also consider a proposal on the Tenure of Service for Professional Staff of the Community; report on Political Affairs; report of the 3rd Secretary General's Forum; status of implementation of the Video Conferencing Project; progress Report on the Elimination of Non-Tariff Barriers; and lastly progress report on COMESA-EAC-SADC Tripartite Arrangement.

 The 21st meeting of the Sectoral Council will be held through the session of Senior officials from 27th to 29th October; the session of Permanent/Principal Secretaries from 29th to 30thOctober; and the Ministerial session is on 31st October 2014.

 At the official opening of the session of Senior Officials this morning, the EAC Deputy Secretary General (Finance and Administration), Mr. Jean Claude Nsengiyumva expressed the Secretariat's appreciation to the Government and people of Rwanda for the warm and cordial hospitality extended to all delegations upon their arrival in this beautiful city of Kigali.

 The Deputy Secretary General reiterated the critical role of the Sectoral Council in coordinating the regional integration process and said that as the integration process deepens and widens, the Senior Officials will be heavily relied on to provide rational strategies on the integration, noting that their pragmatic recommendations and guidance will assist in further advancing the cause of regional integration and development process.

 

Published in Lifestyle