Key highlights from the budget speech for the financial year 2020/21 for the republic of Uganda

1.1 Introduction

The budget speech for the financial year 2020/21 for the Republic Of Uganda was delivered by Hon. Matia Kasaija, the Minister Of Finance Planning & Economic Development on Thursday 11th June 2020.

Under the theme “Stimulating the Economy to safeguard Livelihoods, Jobs, Businesses and Industrial Recovery” the budget has been tailored to support the economy to fully recover from the COVID-19 pandemic and other natural disasters, harness the potential that Uganda has and get back to the progressive journey of double-digit GDP growth rate.

1.2 Key Highlights

From the budget, the following are two critical highlights that will be of interest to our clients, customers, stakeholders and the industry at large.

1.2.1     Power: 

·Electricity generation capacity now stands at 1,254 Megawatts with the completion of the 42 Mega Watt Agago-Achwa II, the 76 Mega Watt Kyambura, and the 5.9 Mega Watt Ndugutu Power projects.

·The 183 Mega Watt Isimba Power Project and its transmission lines was commissioned and the 600 Mega Watt Karuma Power Project is 98 % complete and is due for commissioning in November 2020.

·The Karuma – Kawanda Transmission Line is also 82 % complete.

·Construction of Nyagak III Power Project also resumed in May 2019.

·The electrification of industrial parks has also progressed with the commissioning of the Mukono and Iganga Industrial Parks sub-stations.

·Under the Rural Electrification Programme, 14,820 kilometers of medium-voltage power lines and 10,280 kilometers of low voltage distribution power lines have been constructed.

Implications

·The implication of increased electricity generation is good for the economy as facilities such as data centers that require stable and reliant energy supply will be able to consume this power off the national grid.

·Raxio Data Centre is set out to be a carrier-neutral Tier III standard facility that will require multiple redundancies in energy supply and increased power supply on the national grid is great news for its clients and customers.

1.2.2     National Backbone Infrastructure

·The National Backbone Infrastructure now covers forty-nine (49) districts, 480 Ministries, Agencies and Local Governments, and 7 border posts.

·The monthly average unit cost of internet bandwidth for One Megabite per second (1Mbps) on the Backbone has reduced from $300 to US$70.

·A 500-seater ICT Innovation Hub at Nakawa has been completed.

·172 ICT Innovators were supported under the National ICT Initiatives Programme (NIISP) to develop e-Solutions.

Implications

·With increased support from the Government on this industry, rapid technological progress and productivity growth will result, leading to increased competition and activity in an area that supports a multiplicity of businesses, industries, and sectors in Uganda

·Raxio Data Centre is set out to working with a diverse range of players in the ICT sector especially amongst small and medium-sized enterprises (SMEs).

·Collaboration with ICT based innovations and applications – that have become major drivers of enhanced organizational performance, economic growth, and social change – will lead to better enterprise and business solutions that will result in improved organizational processes while also increasing employment opportunities, both directly and indirectly.