While delivering the State Of the Nation Address (SONA) today, President Yoweri Museveni has warned landlords not to evict tenants.
The President disclosed that the Minister of Finance, Planning and Economic Development has proposed measures to provide liquidity to private firms that have been affected by the COVID-19 Lockdown.
Due to the COVID-19 pandemic, this year’s address was digitally delivered from Entebbe State House and broadcast on giant screens in parliament.
During the address, the President said that the lockdown is new for people in the towns that is why his government has initiated discussions to save Small and Medium sized Enterprises (SMEs).
The president said that in a bid to provide liquidity to private firms that have been affected by the COVID-19 lockdown, the Ministry of Finance, Planning and Economic Development is proposing the following measures :
(i) Allow corporations including small and medium sized enterprises (SMEs) to delay payment of corporation tax or presumptive tax for taxes due between April and June 2020 and for tourism, manufacturing, horticulture and floriculture to defer until September 2020;
(ii) Defer payment of Pay-As-You Earn (PAYE) tax by those sectors which are most affected until September 2020;
(iii) Waiver of interest on tax arrears;
(iv) Support to water and electricity utilities in order to ensure continued supply of these essential services to consumers during the period April to June 2020;
(v) Expedite payment of outstanding VAT refunds;
(vi) Payment of domestic arrears for goods and services supplied to Government by the private sector;
(vii) For those unable to pay their loans, Government through the Bank of Uganda has already put in the gazette the measures to support businesses; including allowing extension of repayment periods, postponement of loan repayment for a limited period, relaxing the conditions for non-performing loans, reduction of reserve funds commercial banks are required to keep with Bank of Uganda and creating a special liquidity facility to rescue businesses that are not able to meet operational costs due to low demand or reduced production due to COVID-19;
(iii) Capitalisation of Uganda Development Corporation (UDC) with Ug Shs. 100 billion to enable Government to invest in strategic areas;
(ix) Boosting funding to Uganda Industrial Research Institute (UIRI) in FY 2020/21 to continue with innovation research and incubation of business start-ups.
(x) Securing funding for the development of Kampala Industrial Business Park at Namanve and for power transmission and substations for Mbale, Kapeeka, Bweyogerere, Kasese, Soroti, Luzira, Jinja and Mbarara industrial parks; and
(xi) Provision of additional UGX 300 billion immediately to boost agricultural production and productivity for seedlings, fertilizers, irrigation, storage facilities and value addition. The target crops are coffee, cotton, tea, palm oil and other oil seeds, cassava, maize, cocoa and dairy, beef, and fish production.
“All these efforts will be much easier when our Government scientists are paid well. They will be able to contribute to the economy without being distracted of having to survive when it comes to the basics of life. Our scientists must be paid at a level comparable to international standards, but of course, taking into account our low cost of living. The prices of food here and other products are much cheaper than in other parts of the World. This factor should be taken into account when fixing the salaries of scientists,” he said.
President Museveni added, “The Government will not allow the landlords evicting tenants on account of not paying rent. Discussions have started with both groups and a solution will be found. This lockdown is new for people in the towns. However, we the cattle keepers repeatedly face lockdowns lasting for many months whenever, there are epidemics of foot and mouth (ejwa) or CBPP (Kihaha). Quarantines are normally imposed. However, we survive and thrive later. The people affected should be registered and an appropriate formula of support will be found that does not create dependency. Food distribution for the genuine groups will continue until the problem is over. Nevertheless, many families in Uganda do not need free food; they just need seeds and low interest money for borrowing and markets for their products. These measures will deal with the deepening and expansion of the Real Economy.”
He said, “This does not mean that we do not value or appreciate the Vulnerable Economy, the economy of leisure and pleasure. Of course, we value it if it is available. We only note its vulnerability. With real economy consolidated, the vulnerable economy will come back stronger when the pandemic is over. By correctly managing the pandemic, the reputation of Uganda will grow in the World. After the pandemic, people will flock here. The diaspora are now sure of a secure and respectable base, their homeland. Hence, to harvest from the economy of leisure and pleasure, we need to consolidate and expand the real economy. Happily, the leisure and pleasure economy was already integrated with portions of our real economy. The hotels in Kampala, were buying alot of food from our agricultural sector. The drying up of the local hotel capacity, has created a marketing problem for the food industry. That is why some of the farmers are beginning to process the foods, e.g. eggs, into food supplements. Out of egg-yolk, they are extracting mayonnaise, shampoos, body creams, protein supplements and from the egg-white, they are making low density cholesterol and from the egg-shell (ekishankara), they get calcium and potassium.”
“Out of milk, apart from cheese, butter, yoghurt, etc., they also get cassein which is a protein supplement that is used for body builders, for cancer patients and it can be used by pharmaceutical companies to make the digestable shells of capsules that carry the medicine powder into our stomachs.
Therefore, the portions of the real economy that were integrated with the leisure and pleasure industries, will find ways of surviving the temporary collapse of that vulnerable economy. By the time the vulnerable economy stands up, again, our agriculture and industry will have broadened their opportunities. There is nothing to lose. Only, we are becoming wiser and stronger. We have everything,” he said.
By Grapevine Writers
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