Bosco was warned in 2016 about printing own currency, but in 2018: Goes ahead with it anyway!

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” Ernest Hemingway

There are someone who doesn’t listen to advise, even when it is well written and with shown data to President Yoweri Kaguta Museveni in October 2016, as there was reports and even made deals at the State House on the 7th October 2016. As the meetings was already ensuring and securing the deals between the Government and the printing company Veridos GmBh. By that time the Veridos company had delivered their commitments to print currency in Uganda. Also a comprehensive business plan that envisioned the proposed joint venture between Veridos and the government.

Now it is the 10th October 2018. Surely for many or plenty, this sort of an agreement is forgotten. Again, today at Entebbe State House, the deals was sealed.

As the Chimps Reports stated: “In the meeting that took place at State House Entebbe on Thursday afternoon, President Museveni noted that this new venture would save Uganda a lot of money that it has been spending on printing documents from abroad. “There was hemorrhage of resources that was unjustified. Money was going out to print currency notes for a long time. About US$25 million was spent each year to create Ugandan currency,” he said” (Kyatusiimire, 2018).

He is saying this without saying the cost of what sort of agreement the government has with company they are already using. As the lack of openness is shown from the state. That is why in 2016, the documents leaked and today, they just came on a government friendly web-paper.

To long:

Interestingly, Mr Museveni, who thanked the German company for its joint cooperation, criticized government officials for “taking too long” to act on such “crucial matters that affect the country.” He added that licensing bodies must not “over price working licenses for investors because it cripples investment and discourages potential investors. “These things of taking two years to deliberate on such matters must stop. Why did you spend two years discussing something that was so obvious?” he wondered” (Kyatusiimire, 2018).

That wasn’t obvious to the Governor of Bank of Uganda Prof. Emmanuel Tumusiime-Mutebile or the Minister for the Ministry of Finance, Planning Economic Development Matia Kasaija, who both was skeptical, not only because isn’t a company who is known for producing currency, secondly the costs are likely to be more, than what they have today and last the possibility for more forgery. All of this data was scrapped, as Bosco had decided himself.

So for some weird reason, Bosco want to take a bad deal, which his experts has said is a bad deal. He complains that his experts has made it takes this, because they didn’t have faith in the project. All been done at the State House, as it was started in 2016 and rewinds again in 2018. What value has the Governor of the BoU and Finance Minister, when their words are meaningless towards Bosco?

Someone please tell me, because I got nothing. Peace.

Reference:

Sharon Kyatusiimire – ‘BREAKING: Uganda to Print its Own Money Locally’ 04.10.2018 link: https://chimpreports.com/breaking-uganda-to-print-its-own-money-locally/

Brexit: Chair of Committee of Public Accounts Meg Hiller MP sends letter Permanent Secretary of HM Revenue and Customs Jon Thompson – “The Customs Declaration Service” (02.10.2018)

NRM MPs bought for cheap: 2nd Mobile Money vote cost less than an Audi R8 Quattro!

Today, it is revealed what the National Resistance Movement (NRM) Members of Parliaments (MPs) was promised on the 1st October at the Entebbe State House on the day before the second time voting for the newly enacted taxes, which are on Social Media and Mobile Money. Clearly, the President and his allies wanted to sweeten the juice, as they was promised some more money. Not that it was much.

During the meeting, legislators (according to our source) were promised 15 millions each to vote “No” opposing the scrapping off of 0.5% as proposed by MP Wilfred Niwagaba last week when the bill had reached committee stage. In the vote, 164 MPs agreed to maintain the levy on mobile money while 124 voted to have it scrapped. A total of 288 legislators were present and voted” (Moses Namayo – ‘MPs promised Shs 15m each for vote to keep mobile money tax- Reports’ 03.10.2018, link: http://nilepost.co.ug/2018/10/03/mps-promised-shs-15m-each-for-vote-to-keep-mobile-money-tax-reports/).

I would have been thinking that the MPs would be more costly, if not their greed is making them cheap and Bosco knows it. As they are now accepting to get a small pickle push of 15 million shillings or $ 3,924 USD, which is less than 4,000 dollars each. When your hearing that, you surprised how little that is to keep a tax, which is hurting huge part of the population and also making every transaction more expensive. They are still making it expensive and costly for the public to takeout money through the mobile money. In a Republic where it is costly to even be ordinary banking.

That is why it weird and sad that these NRM MPs are that cheap, that Bosco can pay them off with only 4,000 USD or 15 million shillings. If you take it all collectively, there was a 164 MPs who voted for it and adding up. That would be a total 640m shillings or $167k USD. Which is not more worth than one 2018 Audi R8 Quattro, which costs $164,900. If a few more had voted for keeping the Mobile Money, than Bosco might have used the amount for an upgraded version: “The R8 Spyder convertible costs $177,100, and the more-powerful R8 Plus will cost about $194,400” (Cherise Threewitt – ‘ Cars That Cost $100,000’ 28.09.2018, link: https://cars.usnews.com/cars-trucks/cars-that-cost-100-grand).

So, the NRM MPs isn’t really that expensive, their ideals, their egos and their greed isn’t costing more than super Audi R8 Quattro. That is expensive enough for me to never in my life-time to touch it. But if someone should be bribed to sell out their constituents for a destructive tax. All done in favor of Bosco. The pay-off should be bigger, there should be enough for a car-park filled with Audi R8 Quattro’s. Not just selling out for one. I was disappointed, when the Age Limit pay-off, wasn’t costing more than one Aston Martin. Now it costed an Audi R8. Clearly, the NRM is still traded off for cheap. Peace.

Robert Kyagulanyi aka Bobi Wine statement on the Second Passing of the Mobile Money Tax (02.10.2018)

Today I attended Parliament after some time, for the sole purpose of making our voice heard on the mobile money tax. The government has deliberately avoided a discussion on the social media tax!

Majority of the NRM Members of Parliament voted to maintain the mobile money tax. 164 MPs voted in favor of the tax while 124 of us voted to have it scrapped. I know that we are all disappointed but not surprised.

Once again, a majority of our elected representatives ignored the cries and pleas of the common person. I have made it clear to my colleagues that we must learn to side with the people or the people will despair. They cannot continue to further oppress the already oppressed citizens of this country.

I must appreciate all colleague MPs who voted for the removal of the tax. Special thanks to the many NRM MPs who defied the intimidation and voted with the people. From experience, we know that they will be persecuted for taking a contrary stand. But I know that the reward for doing what is right always outweighs any form of persecution.

Ultimately, all these things emphasise what I have been saying- our redemption will not come from anywhere else. It will come from us. We only need to realise that all power lies with us. If our own MPs, elected by us, cannot listen to us on anything, including redeeming us from exploitative taxes, then we must realise that WE ARE ON OUR OWN and work each day to liberate ourselves. No one else will do. Teli kuzikiza.

Zimbabwe: The new 2% Mobile Money Tax on each transaction, effective yesterday!

The Reserve Bank of Zimbabwe (RBZ) Governor John Panonetsa Mangudya dropped a Monetary Policy Statement on the 1st October 2018. This one is really telling the state of the economy, as they are planning to find ways to cover their deficits and also fueling the financial state will all means. They are pawning the state and hoping to finds ways to cover the expenses.

Especially, will the Zimbabwe African National Union – Patriotic Front (ZANU-PF) who will address and put this into effect.

The major task is the electronic and digital payments or transactions, which the Monetary Policy is addressing too, just like other countries recently. Therefore, the public will cost for the expenses that the ruling party has taken for granted.

This amount of money, they want to tax:

A total of 3.2 million transactions valued at US$37.6 billion were processed through the RTGS system during the six months ended June 2017. This represented 25% and 31% increases respectively. The mobile payment channel was second highest with 13% and 14% increases in volumes and values aggregating to 15 million and USD5 billion correspondingly” (RBZ – Monetary Policy Statement, 01.10.2018).

As the RBZ told the estimated usage, the Minister of Finance and Economic Development, Prof Mthuli Ncube, dropped his statement on how to tax that money:

Treasury introduced the Intermediated Money Transfer Tax with effect from 1 January 2003 through the Finance Act 15 of 2002. The tax was set at 5 cents per transaction, which was a specific tax. However due to the increase in informalisation of the economy and huge increase in electronic and mobile phone based financial transactions and RTGS transactions there is need to expand the tax collection base and ensure that the tax collection points are aligned with electronic mobile payment transactions and RTGS system. The information we have so far is that in 2018 1.7 billion transactions went through as compared to 50 million four years ago. I hereby review the Intermediated Money Transfer Tax from 5 cents per transaction to 2 cents per dollar transacted, effective 1 October 2018” (Prof Mthuli Ncube, 01.10.2018).

With the knowledge of the usage of Mobile Money, this will clearly hit the citizens with the least. Also, all informal usage of the mobile money use. This is clearly, a way of bleeding the financial market as every transaction will be more costly. By doing so, the state is also taking out valuable funds, as these are taken out and not able to be spent on needed goods and services.

This here will impact the transactions and also most likely, ensure that less people are using them. As the cost of Mobile Money are too high. They are really pushing the envelope and adding more cost to ordinary life. As the simple thing of moving money from A to B becomes costly and the adding expenses are all because of the state. This because the government are making sure people are paying more every single time. They are directly paying two percentage tax on the Mobile Money transaction. That is effective from yesterday. This is what the government are doing its citizens, where the government have to do crowd-funding to fix the cholera problem. That is the government that are doing this too. Peace.

Uganda: The Excise Duty (Amendment) (No.2) Bill, 2018

Pre Mobile Money Tax: BOU registered significant growth in FY2017/18!

Today, there is a new vote and amendment of the Mobile Money in the Parliament. They voted like blind drones in the last go-around and most likely to do the same. With a little flair and jippo, hoping the hungry hippo isn’t mad. However, the reality remained, that a growing market, a market where the revenue and natural growth could have resided. The National Resistance Movement and their President Yoweri Kaguta Museveni, went in like bulldozer. Hoping it wouldn’t destroy it, but actually gain. It is foolish, but that is how they act.

That is why it is special to read again, what where there, but what is now hurt:

“Mobile money services continued to register significant growth in the year ended June 2018. The number of mobile money transactions increased to 1.3 trillion for the year to June 2018 from 1.1 trillion transactions in the prior year. The corresponding value of mobile money transactions increased to UGX 73.1 trillion from UGX 52.8 trillion in the previous year. However, the number of registered mobile money users decreased from 22.8 million in June 2017 to 22.7 million as at end of June 2018, largely attributed to the deregistration of mobile money accounts whose users had not submitted the requisite KYC credentials to maintain their registration status. Growth of mobile money activity has significantly benefited from diversified usage beyond the initial remittances, airtime purchases and bills payments. New developments such as bank account to mobile money wallet and vice versa, have significantly changed the conduct of banking business and increased convenience of access to banking services. In addition, customers are now also able to save and borrow through their mobile money accounts which has positive knock-on effects to financial intermediation in general” (Bank of Uganda Annual Report 2017/2018).

We know post- June 2018, that the landscape has changed. Even mere month after the Mobile Money tax, the usage went down and the companies we’re sending red-signals to the authorities. The added revenue stream to government, didn’t met up to par or the levels anticipated, as people changed their pattern and usage of money. Because, who want to pay double or triple tax for sending money? Than, they rather hire a boda to drive the money from town to town. It can even be cheaper, than paying the Uganda Revenue Authority or the MTN for their services.

Clearly, this little snippet of the report from the Bank of Uganda, should show the Members of Parliament, the importance of Mobile Money. Which, they had no trouble with interfering in and also possibly hurt. This are for the ones that cannot afford ordinary banking services or for the ones, in the villages that are too far away to even register their cash there. They should matter to the MPs, but they didn’t before, as they took this informal banking services through the Cellphone providers and added more pain. Instead of finding ways to grow it and expand. So more people could benefit from the new money unleashed on the market this way. Peace.

URA: Clarification Regarding the Ban of Importation into Uganda of used Motor Vehicle Aged Fifteen Years and Above (01.10.2018)

Democratic Republic of the Congo: A family business (26.09.2018)

A new report by political and security risk consultancy A2 Global Risk offers guidance to businesses and the risks they are likely to face after Kabila steps Down.

LONDON, United Kingdom, September 26, 2018 – December’s presidential elections in the Democratic Republic of the Congo ought to bring new hope, after autocratic Joseph Kabila in August finally agreed to stand down. But with leading opposition candidates barred and a Kabila loyalist lined up as successor, will it just bring more of the same? A new report by political and security risk consultancy A2 Global Risk (A2GlobalRisk.com) offers guidance to businesses and the risks they are likely to face after Kabila steps down.

Download the report: bit.ly/2R2kqs7

Although the Democratic Republic of the Congo (DCR) is rich in natural resources, including gold, copper and cobalt, little of that wealth reaches its ordinary people; 63 per cent of the population survive on less than USD1.9 per day. Instead, recent investigations have suggested, huge sums could have ended up in the coffers of President Joseph Kabila, his family and cronies.

Analysis of public records suggests that public funds found their way into a complex network of entities controlled by Kabila, his family and allies. An assessment of interests held through Kabila’s circle in countries such as Namibia also indicates this.

A presidential election ought to present an opportunity for a fresh start after 17 years of Kabila as president. However, A2 Global Risk Senior Analyst and Sub-Saharan Africa analyst Olivier Milland, author of the report Business risks and the Democratic Republic of the Congo: What happens when Kabila steps down?, is less optimistic.

‘The signs are that there will be little real change. The front man will change, but business will likely continue as before.’

Indicators suggest that investment risk will remain high in the wake of the election, A2 Global assesses. These include:

  • The December election is unlikely to be free and fair, raising the potential for civil unrest and violence
  • Kabila has taken steps to ensure that a staunch supporter succeeds him, reducing the risk of possible prosecution after he steps down
  • Meanwhile, Kabila’s immediate circle of relatives and friends dominates an opaque business community that is likely to maintain control of much of the wealth in the DRC in the medium term

‘With so many vested interests intent in retaining the status quo, this leaves foreign businesses considering market entry in a difficult position

‘On one hand, they could face unfair competition from companies with Kabila connections; while on the other they must ensure that dealings do not violate the multitude of national and extra-territorial anti-money-laundering regulations.’

MTN Uganda and Mastercard diversify Mobile Money services in Uganda (25.09.2018)

Through this partnership, MTN MoMo customers will use a virtual card to shop or make payments at the vast network of global outlets accepting Mastercard payments.

KAMPALA, Uganda, September 25, 2018 – MTN Uganda (MTN.co.ug) in partnership with Mastercard (Mastercard.com) and United Bank for Africa (UBA) (UBAGroup.com) have announced a new service that will enable quicker, safer and more convenient online payments globally.  Through this partnership, MTN MoMo customers will use a virtual card to shop or make payments at the vast network of global outlets accepting Mastercard payments.

The launch of the virtual card that is known as MTN MoMocard will ensure MTN’s ability to provide its customers access to products and services previously a preserve of physical credit card holders while diversifying its mobile money portfolio. Additionally, the partnership will result in a wide range of cutting-edge digital payment solutions being introduced in Uganda.

“MTN MoMo is helping to connect more Ugandans to new forms of commerce,” said Wim Vanhelleputte, Chief Executive Officer, MTN Uganda. “Our affordable mobile financial services are positively impacting communities and lifestyles in Uganda. This is evidenced by the phenomenal growth in both the number of customers and volume of transactions over the years,” he added.

Like a debit card that is linked to a bank account, the MTN MoMocard is linked to a customer’s MTN MoMo account but is accessible on any type of mobile phone. All a customer has to do is dial 165*70# and follow the instructions.

The MTN MoMocard can be used on any merchant platform that accepts Mastercard – locally and globally. Consumers that travel frequently for business or leisure, or those that shop online will enjoy the convenience of the easy-to-use solution.

Ngozi Megwa, Vice President Market Development, Sub-Saharan Africa, Mastercard said, “Besides the ability to connect more consumers to a solution that enables them to pay without cash, the virtual card also supports the growth of e-commerce in Africa and supports businesses who want to appeal to a wider audience. Digital payments is shaping commerce, the backbone of any economy. We are excited about the MTN partnership and its ability to connect us with an audience hungry for innovation.”

The MTN MoMocard is powered by United Bank for Africa, which facilitates the payment transactions online, both locally and internationally.

“UBA is excited to be the bank partner with Mastercard and MTN on this milestone project that not only enhances convenience for mobile money customers but also the utility of the service. The bank recognises the role of technology in enhancing financial services delivery and welcomes future similar partnerships,” said Johnson Agoreyo, the UBA Managing Director/Chief Executive Officer.