By Silvia Nyambura
Value addition in all sectors of the economy is the master key that will move Uganda to the next level of economic development. It has the potential to transform the country’s productivity, reverse the dependency on foreign products as well as turn Uganda into an export based economy. According to Fred Omach the Minister of State for General Duties at the Ministry of Finance, the government has prioritized value addition in the 2015/16 budget.
“In this year’s budget which is aligned to the 2nd phase of the National Development Plan (NDP), there is emphasis on several value addition projects. We have the Karuma and Isimba dams which upon completion are expected to reduce the cost of energy. We need up to 3000 megawatts in order to go fully into industrialization. Government has also invested heavily on infrastructure and creating road networks to enhance commercial agriculture. Currently 49% of farmers are informal and need to be formalized. These investments will go a long way in increasing the country’s revenue to GDP,” he said.
Omach was speaking at the opening of the 3rd annual Certified Public Accountants (CPA) Economic Forum in Entebbe. Themed ‘Enhancing value addition through creativity and innovation’, the 3 day forum will engage stakeholders on increasing productivity across economic sectors.
He highlighted accountants have been pivotal in the government’s policy making processes over the years.
“Accountants are important for any economy to have value and thrive. Proper books of accounts allow businesses, institutions and entrepreneurs to focus on proper business plans and get value for their money. Accountants advise on whether businesses should manage liquidity or recapitalize in case things go wrong. Over the years, this forum has contributed greatly to policy making in Uganda through brainstorming on pertinent issues. I believe the issues discussed here in the next three days will benefit all of us,” he said.
Ben Patrick Kagoro the President Institute of Certified Public Accounts (ICPAU) said the institute has a role to help government understand public financial management.
“During this forum, we will discuss some of the issues affecting our country and how it feeds into accountability back to the people we represent. This forum is an additional way of contributing towards economic policy issues of our country. We are happy that some of the proposals we made last year were reflected in the budget. This included reforming agricultural extension and advisory services, provision of seeds breeding planting and stocking materials to farmers, supporting skilling, increase access to tertiary education to mention but a few,” he noted.
Omach highlighted opportunities available for Ugandan professionals not only locally but across the continent. According to him, the world Africa as a continent is taking measures to trade with itself more.
“Last year 26 countries in the continent signed a tripartite agreement committing to a common market. These included countries in the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). This represents a population of over 635 million people with a GDP of USD 1.3 trillion. Currently, exchange of trade between African countries is at only 10%. Such a common market presents great opportunities not only for growth of individual countries but also for professionals to offer their services without boundaries. This in itself is value addition,” he said.