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JANUARY-MARCH 2016 ISSUE 4 VOLUME 4

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With the recent private sector membership recognition of our efforts at simplifying all processes that have hitherto challenged starting a business, the team at URSB feels more re-energized to work harder and exceed all expectations from our stakeholders.

Under the National Development Plan 11 and the Vision 2040, Uganda Registration Services Bureau’s efforts are designed in a way that they contribute to vision of transforming the Ugandan society from peasantry to modernity by the year 2030.

A big part of our work is hinged on registering businesses and fostering Small and Medium Enterprises (SMEs) by easing doing business because they are the backbone of the Ugandan economy since they contribute to job creation and poverty reduction.

Sensitizing SMEs about the need to formalize their startups and already existing businesses is therefore paramount because they need to grow from small enterprises to medium and large businesses.

In addition, we are also working hard to provide a suitable enabling environment for business creation, survival and growth in the country through numerous legal and administrative reforms among other efforts being undertaken.

We have started on the process to operationalize the Chattels Securities Act to enable ease of accessing finance and facilitate the development of most MSMEs whose finances are low but need businesses to expand and grow to create more profits and eventual employment opportunities.

URSB has for long now championed inter agency cooperation so as to share information and perform effectively. In February we signed a Memorandum of Understanding with the Financial Intelligence Authority so as to work together in the implementation of the Anti-Money Laundering Act.

In cooperation with the Ministry of Gender Labor and Social Development, we continue to sensitize women in businesses which provides for gender inclusiveness because we appreciate that women are key players in the socio-economic development of this country.

With coordination from USAID’s agricultural inputs program, our business clinics across the country have promoted the instant registration of SMEs which majorly operate in the agricultural sector. Our clinics have so far covered Masaka, Bushenyi, Ibanda, kiryandongo, Kiboga, Gulu, Kapchorwa , Mityana and Mubende districts.

As a growing institution we also continue to learn from best practices and have since had teams from many government agencies travel with URSB teams to benchmark on numerous aspects that can contribute to the improvement of the doing business environment in the country.

With support from the World Bank’s Competitiveness and Enterprise Development Project (CEDP) we have had a delegation visit Mauritius to learn best practices on the establishment of the one stop shop for businesses, an area of interest to Government as a key to service delivery.

Another team has since visited Malawi as the country launched its Chattels Securities Registry while another has been in Zambia learning on how to reform the licensing regime in our country so as to eliminate those hindrances that could make the processes hard and cumbersome.

These benchmarks are in essence meant to observe, learn and incorporate best practices that could lead to improvement in registration process.

In order to encourage and promote innovation and further formalization, URSB has also sensitized the Uganda Film and Movie Industry members, reminding them of the need to formalise their business and the inherent benefits in protection of their films and theatrical productions a provision provided in the Copyright Act.

Internally as an institution we have also benefited from CEDP to carry out numerous trainings for our staff in relevant sectors like leadership, management, records, among others. This strengthens staff capacities to serve the private sector even better.

FOREWORDMoving in the right directionBemanya Twebaze- Registrar General

As a growing institution we continue to learn from best practices across the globe so as to improve the way we do our work to serve the private sector better

CONTENTS

URSB Staff who participated in a business clinic in Ibanda district pose for a picture with Ibanda traders chairman Suleiman Muhoozi (second from left) February 10, 2016

Mercy Kainobwisho - Director Business RegistrationProvia Nangobi - Senior Public Relations Officer

Editorial Team:

Bemanya Twebaze - Executive Editor | Sheila Naturinda - Editor

MSMEs in Uganda: Why some Indigenous Businesses Do Not Survive

URSB wins another award;performance at its best

E-Biz System; Business Name Reservation goes online.

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We have opened up a call center

Easy access to finance is a vehicle for prosperity for all

An interview with PSFU’s ED Gideon Badagawa on the World Bank support.

URSB events in PICTURES

Reforming the business licensing regime; the Zambian testimony

Partnering with the Financial Intelligence Authority to end the money laundering vice

Improved modes of communication and streamlined workflows at URSB thanks to CEDP.

Empowering womenthrough Business establishment & formalization

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In August 2015, with an entrepreneurship rate of 28 per cent, Uganda was ranked in first place with almost double the entrepreneurship rate of Thailand, who came in second place with 16 per cent. Uganda’s title of most entrepreneurial country comes in a wake of a fast population growth, which has led to an uncharacteristically young population estimated at 77 per cent of Ugandans who are below the age of 30 and 64 per cent of those who are aged 18-30 being unemployed. Uganda, like many other countries, faces a challenge of businesses that start but fail to survive.

But why do some businesses succeed when others fail? While it may seem to be a matter of luck, in reality there are common mistakes that kill many small businesses before they ever get off the ground. According to Patricia Schaefer “When you are starting a new business, the last thing you want to focus on is failure. But if you address the common reasons for failure upfront, you will be much less likely to fall victim to them yourself”. Brad Egeland (2013) posits that we like to talk about successes and how to succeed in business, but the truth is that many new small businesses fail. So, understanding how to recognize when things start to go south is obviously important

Business failure refers to a company ceasing operations following its inability to make profit or bringing in enough revenue to cover its expenses.

Indigenous businesses are unable to make it as opposed to their foreign counterparts because of financial hiccups. A common fatal mistake for many failed businesses is having insufficient operating funds. Unlike their foreign counterparts who can secure cheaper sources of funds from their home country to revive their businesses in times of turbulence, the indigenous businesses are unable to meet the various requirements of the financial institutions in Uganda. Where they are able to access funds from these institutions, the high borrowing costs eventually result in the collapse of these businesses. It is imperative to ascertain how much money your business will require; not only the costs of starting, but the costs of staying in business. It is important to take into consideration that many businesses take a year or two to get going. This means you will need enough funds to cover all costs until sales can eventually pay for these costs. 

Poor management is usually cited as the number one reason for business failure. New business owners frequently lack relevant business and management expertise in areas such as finance, purchasing, selling, production, and hiring and managing employees. Unless they recognize what they don’t do well, and seek help, business owners may soon face disaster. They must also be educated and alert to fraud, and put into place measures to avoid it. A successful manager is also a good

MSMEs in Uganda: Why some Indigenous Businesses Do Not Survive

By Twinomujuni Kafunjo, PA to Registrar General

According to statistics published by the Small Business Administration (SBA) in 2014, about half of all employer establishments survive at least five years and a third survive ten years or more. This is a far cry from the previous long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years.

Notable factors that have accounted for the inability for business to survive are many and varied depending on the basis for which the business was started. Some businesses are started because an individual is targeting a certain market like supplying government institutions and when they don’t succeed in obtaining government tenders they close shop. Many small businesses fail because of fundamental shortcomings in their business planning. It is vital to note that most business-owners fail to plan seriously and appropriately. It is critical for all businesses to have a BUSINESS PLAN. The plan must be realistic and based on accurate, current information and educated projections for the future. Components may include: Description of the business, vision, goals, and keys to success; Workforce needs; Potential problems and solutions; Financial: capital equipment and supply list, balance sheet, income statement and cash flow analysis, sales and expense forecast; Analysis of competition; Marketing, advertising and promotional activities; and Budgeting and managing company growth.

leader who creates a work climate that encourages productivity. He or she has a skill at hiring competent people, training them and is able to delegate. Most indigenous companies fail to train employees who may have passion for their businesses. A good leader is also skilled at strategic thinking, able to make a vision a reality, and able to confront change, make transitions, and envision new possibilities for the future.

Some companies are unable to survive because of politics. This is true especially for politically-exposed entrepreneurs; their businesses collapse because of frustrations from their political opponents. Politicians may manipulate the system to frustrate businesses for political expediency.

Some businesses are unable to make it due to lack of investment in technology. Most indigenous companies fail to keep pace with technological advancements and failing to change with the times. Thus, they continue to employ old technologies which may not just be costly but limited in terms of options. The ability to recognize opportunities and be flexible enough to adapt is crucial to surviving and thriving. Learn how to wear multiple hats, respond nimbly, and develop new areas of expertise.

Businesses are unable to make it because of lack of interest in networking. Business networking refers to situations in which people use their personal contacts for business-related goals. Indeed networking provides businessmen/women with stable sources of accurate information pertaining to competitors, industry events etc. Members of an entrepreneur’s network will recommend the entrepreneur to other members of their network, and during crisis, contacts can be relied upon to lend a helping hand.

Businesses are unable to make it because of lack of discipline. Business owners just spend on unnecessary things and also lead flashy lifestyles. Many new entrepreneurs burn through their startup capital before their cash flow is positive. This often happens because of misconceptions about how

business operates. Business-owners proceed to lead a life of fancy cars, vacation homes while the employees don’t see bonuses or raises. Some business-owners just can’t see that their desire to never make a tough decision with regard to hiring, or changing suppliers, or firing is ultimately leading them down the road to failure. Deep down, they believe they are serving the greater good by keeping everyone employed even if the business is coming to a grinding halt.

Businesses are unable to make it because they fail to set up research and development (R&D) departments that would make discoveries that can lead to development of new products or procedures, or improvement of existing products and procedures.

If businesses do not spend on Research and Development, then technically they are not investing in the future; and very soon their products and services will be obsolete and they will be out of business. Most of the foreign companies have R&D departments that scan the environment constantly for them, hence their ability to survive.

Overexpansion as a leading cause of business failure often happens when business owners confuse success with how fast they can expand their business. While growth is desirable, overexpansion is a serious error. A focus on slow and steady growth is optimum. Many a bankruptcy has been caused by rapidly expanding companies. At the same time, you do not want to repress growth. Once you have an established solid customer base and a good cash flow, let your success help you set the right measured pace. Some indications that an expansion may be warranted include the inability to fill customer needs in a timely basis, and employees

having difficulty keeping up with production demands. If expansion is warranted after careful review, research and analysis, identify what and who you need to add in order for your business to grow. Then with the right systems and people in place, you can focus on the growth of your business, not on doing everything in it yourself.

It is reported that in Uganda, many small businesses that generate average monthly turnover of Ush42 million ($13,925) suffer from low cash flows, a situation attributed to limited capital and high level of credit sales registered in their operations. Though most of these businesses are exposed to bill settlement periods of more than 45 days, the tax payment cycle for VAT returns is 30 days, meaning they cannot clear taxes on time. The existing law requires all VAT registered taxpayers to file returns by the 15th of every month and clear their bills before the last day of the month. They are thus forced into costly short-term borrowing to clear tax liabilities. This sometimes ends in the collapse of businesses. Therefore, an increase in the number of small businesses enjoying longer VAT clearing periods is likely to improve overall cash flows through diminished finance costs while boosting tax compliance rates.

Poor customer service and overall employee incompetence will quickly sink your business. Make sure your employees place a premium on customer service. Develop systems and processes for how tasks should be accomplished, and create internal controls to monitor them. Customer loyalty doesn’t just happen — you have to earn it. Watch your competition and stay one step ahead of them. If you don’t take care of your customers, your competition will.

For many successful business owners, failure has never been an option. Armed with drive, determination, and a positive mindset, these individuals view any setback as only an opportunity to learn and grow. Most self-made millionaires possess the virtue of openness to new knowledge and their willingness to learn whatever it takes to succeed.

Ms Eunice Agoro, Senior Registration Officer Gulu Office conducting a sensitisation of a cross section of members of MSMEs in Kiryandogo district February 2016

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At their sixth annual private sector development award giving ceremony on February 10, 2016, the Private Sector Foundation membership introduced a new award winning category, “The Government Agency of the Year.”

The awarding ceremony is done in recognition of the contribution that companies, business associations and government agencies have made to the private sector growth and development in the country.

Previously, the awards had been fashioned for only; (i) business association of the year, (ii) rural association of the year, and (iii) business champion for young children.

For the first time, PSFU included the Government category where nominations were solicited from their membership and at least 45 government agencies were enlisted because of their role in offering innovative programs and also improved services that have enhanced private sector growth.

The highly publicized event saw Uganda Registration Services Bureau emerge second runners up, after Uganda Investment Authority (UIA) and Uganda National Bureau of Standards (UNBS).

While receiving the award, URSB Registrar General Bemanya Twebaze promised to work towards having a reduction in time for business registration from the current 8 to 16 working hours to only about 6 hours or less.

He also promised to fast track automation processes so that business registration is done in an instant.

Ms Malberg appreciated Private Sector’s continued relationship with the World Bank taking cognizance of the over 20 years partnership the World Bank has had with the Private Sector in Uganda and noted that such an initiative was critical in boosting competitiveness.

While addressing the awardees, PSFU Chairman Mr Patrick Bitature appealed

to the business community in Uganda to work together and do meaningful businesses that would increase and enhance competitiveness beyond Uganda.

He also noted that success would only come if the businesses became well organized, became efficient in their service delivery, and embraced value addition.

He called on everyone in busineness to ensure quality control, maintain books of accounts, practice good corporate governance, public relations and aggressive marketing and pay taxes as well.

The award means that in the year 2015 URSB demonstrated improved efficiency and service delivery, developed new innovative products that responded to the needs of the Private Sector.

This follows the Golden Award for Quality and Business Prestige that URSB received from Geneva in November 23, 2015 which means as a team the Bureau has played a big and recognizable role in serving the private sector although there remains some other targets that should contribute to full automation of all business processes.

The Government of Uganda represented by the National Information Technology Authority (NITA-U) and M/S Norway Registers Development AS have signed a Contract for the Design and Implementation of an Integrated One-Stop Centre Solution for Business Registration and Licensing for Uganda Investment Authority (UIA) with URSB as a beneficiary agency.

EBiz is aimed at providing faster, more user friendly reliable services with the current focus been on Name Reservation as URSB awaits for the implementation of an online Business Name Register that fully provides complete registration services for local entrepreneurs and foreign investors.

This is aimed at streamlining the interactions between business

owners and government institutions such as URSB, KCCA, NEMA, UIA, and URA as regards business registration and licensing – hence reducing the number of procedures, time and cost of obtaining the relevant licenses and permits.

EBiz System is thus an Integrated One-Stop Centre Solution for Business Registration and Licensing intended for use by both Ugandan entrepreneurs and foreign investors in and outside Uganda. It is the first inter-institutional project which aims at integrating services of different agencies to meet the expectations of businesses in Uganda by having an online accessibility to all government services through a single point of entry.

EBiz System provides the following for those carrying out initial business registration or name searches online:

URSB wins another award; performance at its best

By Sheila NaturindaCommunications Specialist | CEDP | URSB

By Teddy Acam, Records officer UIA

The Registrar General, flanked by Director Business Registration & Cedp Communications Specialist as he receives the PSFU government of the year 2015 award from Wold Bank country manager, Ms Christina Malberg

The award was handed over to URSB by the World Bank Country Manager Ms Christina Malberg Calvo and the PSFU Board Chairman Mr Patrick Bitature.

• Prepare e-Applications for the business names searches

• Define payment

• Record proof of payment

• Accept Name reservation/change application

• Print e-Application and continue processing internal system

• Record name reservation processing result.

The e-biz system has increasingly attracted and delighted more of the clients from the investment world to using our services as we meet their registration needs timely.

The consultant who designed E-biz system and trained users hands over a certificate of training to Doreen Aseate, the Registration Officer of the UIA-URSB Branch office. The office has served many investors as a one stop centre due to its proximity to the UIA.

E-Biz System; Business Name Reservation goes online.

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Simple illustration of the e-biz system work flow under URSB

From Monday to Friday 8am to 5pm you can call into our call center on 0417-338100 and talk to one of our well trained representatives about anything in regard to our services. The call center started operating in November 2015 as a means of informing and empowering our clients which will in turn lead to improved efficiency, accountability and client satisfaction.

Through the call center one can check on the status of their application, get information on the requirements for registration and the procedures of registration.

All the issues can be resolved first hand which helps us actively manage work item distribution to speed and eliminate the ‘slush pile’ of complex cases that are sometimes inadvertently unattended to.

In situations where an issue isnot resolved immediately, calls are routed to personnel best suited to address such.

The call centre is an indirect interface with our clients for feedback, and passing on information.

We have opened up a call center;

Get us on 0417338100.By Maria Gloria Karungi, Client Relations Officer

To note though is that there are some things you cannot transact through the call centre for example filing applications because every registration has to be done physically by the client because we still use registration forms which have to be filled, signed and paid for.

So the call center can only be used to inform and help you fill these forms and advice on which forms are required for the different registrations but it doesnot submit them for you.

Each contact between our customers and us through the call centre is recorded and documented to help us serve you better. We analyze the calls to see your comments, complaints and compliments this is of high importance because the data can be turned into actionable insights that help to improve on our services and hence attain client satisfaction.

In fact, the key aspect in providing a great customer experience is to anticipate their needs and this can be done via converting call center analytics into actionable insights. So your feed back

through the call center is very essential to our operations.

Any one is free to call into the call center as long as your inquiry or communication is related to our services or those of other government agencies whose work is related to what we do for example, URA, KCCA, and Posta Uganda among others.

Calls can be made from any network across the world and callers are charged, not by URSB but by their respective networks. We encourage callers to prepare and have a note book and pen so that information given is not repeated or incase it is an inquiry, have the names of the company you are inquiring about close by.

For more information: Website: www.ursb.go.ug , email: ursb@ursb.go.ug, facebook.com/URSBHQ

For any information about our services and complaints, please call our call centre line on 0417338100.

URSB call centre officers at work. The centre, which just started for now receives at least 50 calls in a day.

This and more information including the descriptions of all required application procedures can be accessed on the One-Stop Centre portal https://www.ebiz.go.ug

The OSC is ideally introducing integration and use of services online, automating work functions and reducing paperwork for greater internal operational efficiency. It is being traversed into effecting and improving its services towards its clients.

“With the use of such ICT tools, URSB shall surely attain its objectives by offering quick business registration services to all clients all over the country and in the diaspora with the simplified and friendly interfaces provided by the E-Biz system hence saving clients time.

When sensitization is adequately done about the E-biz service, the future of the Bureau is bright especially with regard to the great and growing support and from clients and partnering agencies in the business communities.”

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URSB events in PICTURES

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1. A team of URSB senior management officers together with Mr Ben Anyama (board member) after attending a Board and Management retreat in Paraa Lodge in Amuru district in January 2016.

7. URSB staff who participated in the International Womens Day celebration at Kololo in Kampala on March 8, 2016

4. A cross section of Accounting Officers and Town Clerks attending a TREP training session at the URA Lugogo offices. URSB is a partner in the TREP program.

10. The URSB and FIA teams in a group photo after signing the MoU in February 12, 2016.

2. A group of artists, film makers and movie industry employees who attended the Uganda Film and Movie industry sensitisation organised by the URSB at the National Theatre

8. Mr Twaha Lubega, a senior Registration officer Mbarara conducting a sensitisation in Mbarara market on the benefits of formalising businesses this year.

5. The team to Zambia benchmark poses for a group photo with the CEO & Registrar General of URSB PACRA Anthony Byemba.

11. Mr Phillip Kalibala a Senior Registrar IP facilitates at the Uganda Film and Movie industry event organised by URSB at the National Theatre

3. State Minister for Gender and Labor, Dr Kamanda Bataringaya confers with Mr Bemanya and Ms Kyomugasho on the sidelines of a womens’ in business workshop in Kampala in February 2015.

9. A woman explains her journey and challenges in business to other women at a URSB organised women in business sensitisation in February 2016.

6. The URSB team and other agencies representatives during a study tour of the Zambian one stop centre.

12. Training on effective management of Intellectual Property for Small and Medium Enterprises (SMEs) organised by URSB early this year.

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that business people are being served in a day instead of the historical 3 months- we appreciate because all those previous delays would cost a lot for businesses.

Now, apart from the internal improvements we now have to expand further even to areas we haven’t established offices so that everyone is brought on board.

It’s good we are opening a Nakivubo office for the traders to get services while they do their work, this is a very good development.

We also should expand our communication so that people know where we are, how to get to us, what we offer and how much we offer the services we offer.

We should tell people that registering a business is done in a day and upon payment of a minimal fee because our people still think it is very expensive to register a business which is not true.

Let us go out there and use mass media especially radios and demystify all these areas and further engage with many other MDAs. As private sector,we have already started seeing the fruits especially when you see the numbers URSB is serving everyday as compared to those served two years ago.

When we finally achieve the online registration reform, we will further reduce on the numbers walking to our offices. Therefore if there is anything we need to do differently, we shall do

so as to turn the informal sector into a formal one within the next 5 years.

3: Having been at the helm of the Private Sector body for some time now; what legacy would you want to leave behind when you finally exit?

Answer: PSFU has had at least 5 Executive Directors before me and our mandate remains to engage Government in a positive dialogue on a number of things if we must achieve the conducive environment for private sector practitioners we always talk about.

We have had a positive relationship with the Government and we realise that together with Development Partners we agree that the economy should be private sector driven since it’s the Private Sector that runs the most sectors which define the country’s GDP and enhance competitiveness.

Government needs taxes and the taxes are paid by the Private Sector therefore we must work hard to have the private sector improve and create profits, expand investments, create more employment hence an increased revenue to support Government.

At PSFU, we acknowledge that the country’s private sector is playing this role very well.

Government provides less than 1 million jobs yet we have a labour force

of about 14 million Ugandans today. This tells you where jobs are, and currently the private sector provides about 6million jobs only. There is hope.

Therefore on the question of legacy, “will we have raw infrastructure skills for an investor to come and service the economy – how prepared are we?” what about financial infrastructure or soft systems? Have we reformed the financial sector well enough?

If you have less than 15 companies floating on the stock market, it’s not a good number given that the capital markets are a good way of getting markets reformed.

As PSFU we have had trainings for improved corporate governance but we need to engage further in useful markets, rather than stand alone because markets won’t count.

Issues of organising the private sector better than it is today are some that I must work on before I walk out, value addition, transport and logistics, manufacturing, cooperatives all to meet market expectations, policy advocacy and engagement on businesses.

Under the current support and funding from the World Bank, URSB is implementing the second component of the project- The Competitiveness and Enterprise Development Project (CEDP).

The component objective aims at reducing the burden for businesses in dealing with registration and licensing procedures by creating an online one-stop-shop for business registration and an e-registry for business licensing, and by implementing measures aimed to simplify and streamline business registration and business licensing procedures.

The project is coordinated by the Private Sector Foundation Uganda.

PSFU’s ED Gideon Badagawa shared his thoughts on the project and the Private sector role in general with CEDP|URSB Communications Specialist Sheila Naturinda.

1: Share with me your opinion on the CEDP project. Should we look at it as a “stitch in time?”

Answer: If you look at the second component of the project which is implemented by URSB, and you know that we have always had a challenge with the informal sector, I would say a big YES.

There had been too much pressure on Government for services offered for example electricity, infrastructure, and medical services among others

and by the time the World Bank came in, it found us at the time pushing Government to ensure we broaden the tax base in order to achieve these services.

At that time, we had an informal sector standing at about 78% but we now have it at 40% (UBOS statisctics). Our argument then as Private Sector was to expand the tax base so that we have all the reasons to achieve the social services needed by every Ugandan. Therefore the support and funding came in at a time we needed it most.

Incidentally when they first came, it was a USD 600,000 project to fund and help URSB facilitate the business sector but this first one did not take off successfully because of the institution’s reporting structure yet the Bank wanted a fairly expansive structure. The project ended without offering much support to URSB.

Now when CEDP came in, the URSB structure was already established and so was the Uganda Tourism Board structure. The initial challenges like inadequate institutional structures had to be worked on and as as you can see there is already a registered improvement since URSB started implementing CEDP with the PSFU engagement.

For now while we appreciate that we are on the right path, we need a sustainability approach because once the support ends, the impact will be felt if Government doesn’t maintain what

will have been achieved and continue with the processes. This is the challenge we must face now and take on.

2: From the PSFU angle what would you like to see URSB doing differently?

Answer: Where URSB has come from I must say so far so good. I don’t see what they should do different but encourage them to continue what they are doing.

At first we had our files heaped on the floor, that’s history now. It was a challenge because business documents are always needed to do serious contracts among the other uses, so they needed to be kept safely at all times.

The mere fact that we now have a well organised way of keeping our files in well organised shelves and we are already working towards a Document Management System, the mere fact

We should tell people that registering a business is done in a day and upon payment of a little fee because our people still think it is very expensive to register a business which is not true.

Government provides less than 1 million employment yet we have a labour force of about 14 million Ugandans.

An interview with PSFU Executive Director, Gideon Badagawa

A heap of files on the 8th floor of URSB offices before the CEDP support that facilitated file census and re-organisation

The current registry with well organised files on 8th floor of URSB offices.

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The 12th February, 2016 marked yet another great milestone for us at the Uganda Registration Services Bureau.

On this day, we entered into a partnership, with FIA on information sharing and exchange underscoring the importance, effectiveness and efficiency of collaboration between public entities in their quest for better service delivery.

The signing ceremony brought together the Chief Executives of the two institutions; Mr. Bemanya Twebaze the Registrar General of URSB and Mr. Sydney Asubo the Executive Director of FIA, members of staff from the two institutions and the media fraternity.

The signed MOU derives its validity from the Law- the Anti-money laundering Act, 2013- an Act which provides for the prohibition and prevention of money laundering, the establishment of a Financial Intelligence Authority and Financial Intelligence Authority Board in order to combat money laundering activities.

The MOU therefore galvanizes the provisions of the Act on how the two institutions shall exercise their mandate.

The Act imposes certain duties on institutions and other persons, businesses and professions who might be used for money laundering

purposes; provides for orders in relation proceeds of crime and properties of offenders, international cooperation in investigations, prosecution and other legal processes of prohibiting and preventing money laundering, designates money laundering as an extraditable offence, and provides for other related matters.

The URSB as one of such institutions designated as a competent authority is obligated to cooperate with FIA to combat money laundering activities.

Under the MOU, FIA and URSB recognize that open channels of communication and strong coordination are important for effective and streamlined regulation of the financial and commercial business sector.

This ceremony meant that we intend to establish a framework for mutual assistance and to facilitate the exchange of information, enforce or secure compliance with the governing laws, regulations and rules of their respective designations and to facilitate the fulfilling of their supervisory and regulatory responsibilities.

The MOU will also serve to promote the integrity, efficiency and financial soundness of the market intermediaries in the financial and commercial services sector by improving the effective regulation, enhancing their supervision and

combating Money Laundering and terrorist financing Activities in Uganda.

The agencies will use their best endeavours to provide each other with any information that they reasonably suspect may be in breach or anticipated breach of laws, regulations or rules in the jurisdictions of the agencies.

Mr. Asubo Sydney in his remarks stated that money launderers operate in a complex way through forming complex structures such as holding companies thereby hiding the ultimate beneficiaries of the illicit trade.

URSB therefore promised to exchange information relating to commercial and business activities of its registered entities on a case by case basis as requested by the FIA.

To facilitate smooth communication and ensure continuity in the co-operation between the agencies, each agency will designate the contact persons; that is the Registrar General of the URSB or designated person and the Executive Director of FIA or a designated person. Requests for assistance shall be made in writing and in the English language and will be addressed to the contact person of the Requested agency.

The URSB shall establish and maintain records on information obtained

Women were generally perceived to be home makers with very little to contribute to the economy but today women play a very critical role in the social – economic growth of every nation.

In Uganda, more and more women are taking up entrepreneurial activity especially in medium and small scale enterprises. Many more women continue to establish and register their businesses.

Businesses contribute a lot to their homes, families, society and the

state. In the last 53 years of Uganda’s Independence, there has been significant participation of women in all sectors and yet most businesses are still owned and run by men.

As part of our mandate, at URSB we have carried out a number of workshops and seminars to sensitize women on the procedures and benefits of establishing and registering their businesses.

Through partnerships with the Ministry of Gender, Labour and Social Development and though the Uganda

Women Entrepreneurs Association, URSB has sensitized hundreds of women drawn from different sectors across trade for example agriculturalists, beauticians, artisans and among others.

Empowering women to participate in businesses has a great impact on the society and households and opens up opportunities of business owners, families economically and strengthens the private sector and assists in formalization of the economy which eventually benefits the government and society.

Empowering women through Business establishment & formalization

By Mercy K. KainobwishoDirector Business Registration

about the true identity of the person on whose behalf a business relationship is initiated or a transaction is conducted, during the period in which business relations are in effect and for at least ten years after their conclusion in readily recoverable form, the records of the information and documentation required.

The URSB shall Monitor and report suspicious transactions and provide any other necessary information as required under the provisions of the Act and this MOU.

Section 1 of the Anti-money laundering act, 2013 defines suspicious transaction as a transaction which is inconsistent with the customer’s known legitimate business or personal activities or with the normal type of account or business relationship, or a complex and unusual

transaction or complex or unusual pattern of transaction.

Mr. Bemanya was quick to inform the members that this was just one out of many MOUs already entered between URSB and other institutions notably; the KCCA, URA, MOLG, NSSF, UIA among others and that the MOUs have generated visible results with practical benefits. URSB has been an efficient clearing house for vital information and data on registrations following the numerous transformations in its work processes; current collaborative working relationships between URSB and other investigative agencies such as the IGG and police bears testimony to that fact.

The offences of noncompliance provided for under Part VII of the Act include;

Tipping off, Falsification, Concealment, etc. of documents, Failure to identify persons in contravention of the Act, Failure to keep records, Facilitating money laundering, Destroying or tampering with records, Refusal, omission, neglect or failure to give assistance, Failure to report suspicious transaction, Failure to send a report to the Authority

URSB shall therefore do all that is necessary within its mandate to ensure compliance with the provisions of the Act and the MOU.This not only calls for proper record keeping and data maintenance, but also high quality data. Mr. Bemanya assured the members about URSBs capacity in this respect especially following the various projects that have built the institutions data management capacity.

Partnering with the Financial Intelligence Authority to end the money laundering vice

By William DrakuSenior Compliance & Enforcement Officer

FIA Executive Director Sydney Asubo together with Mr Bemanya after signing the MoU at the URSB boardroom on February 12, 2016

Ms Kyeyune Lydia, a small scale trader in Luweero Kasana stresses a point during a sensitisation event organised by the URSB for women traders in February 2016

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Fortunately, the Uganda government was able to secure funding to overhaul the current secured transactions regime from an archaic law of 1978 to the current Chattels Securities Act 7 of 2014 which is more suited to meet the needs of both potential creditors and borrowers.

The plan before URSB now is to have an electronic registry which will be accessed upon request and payment of prescribed fees. The registry will contain all information on a particular chattel and so a potential creditor can do a search before lending to the intended borrower. The need for security/minimum risk in such transactions is very important since most of the demographic of would be borrowers is high risk.

The role of Financial Institutions (FIs) in making these legal changes a reality cannot be undermined, after all, they are the ones with the money. While one can take cognizance of the fears attached to lending to that portion of the population, FIs need to adapt to the needs of these potential clients.

In addition, investors can take up the available opportunity to start businesses whose major role will be to cater for the needs of Medium and Small Scale Enterprises (MSMEs) and create tailor made products that take

Easy access to finance is a vehicle for prosperity for all

By Oketta Victoria, Support Officer |CEDP

URSB has therefore recognized the need to create conditions to unlock the full potential of women, evaluate the current status, create awareness, and achieve economic goals through business establishments and sustainability at a household level.

Women entrepreneurship is an effective strategy to solve the problems of rural and urban poverty hence wealth creation at household levels.

The National Vision statement as approved by Cabinet is to “transform the Ugandan society from a peasant to a modern and prosperous country within 30 years.”

Societies can be transformed through business establishments and registration.

Women in Uganda continue to play a big role in trade, hospitality, education, health, and Agriculture. Women have and run business like saloons, schools, hotels, markets among others.

Uganda has a good business and legal environment for all to start and operate businesses irrespective of gender. Therefore we have always reminded women to take full advantage of the good environment to register and establish businesses.

She founded the business as a sole proprietorship in May 2000 and later registered it as a limited liability company in May 2009. She started the business in a small shed, making garden fountains; her pieces are made out of diverse materials such as wrought iron, cane, wood and glass.

Due to the quality of her work, demand for her products increased and she needed capital to expand production so she could meet the growing demand; unfortunately, she did not have land to stake as security for a loan and yet most banks prefer such collateral.

How then, did she meet this need for extra capital? Through pledging her machinery as collateral. The loan provided the much needed financial muscle necessary to move the business to the next level and today, she is one of Ghana’s top business women and sculptors.

Ms Swaniker’s machinery falls under a category of property that is known as Chattels; other examples include crops, wool, contracts, and accounts receivable, among others. Ms Swaniker represents the vast majority of Africa’s population mostly women and youth who have no land to stake but have small businesses with a lot of potential and heavy capital constraints which limit the growth of these enterprises.

The end result is that most women and youth, who form the majority of the population, remain below the poverty line and yet they are some of the most enterprising individuals on the planet. The need for other means for providing finance to this portion of the population apart from the traditional way (securing a loan using titled land) cannot be overemphasised.

into consideration the characteristics of such businesses and of their owners.

Some of these products include lease financing-this is where the Financial Institution purchases the machinery for a business and then leases it out to that business which pays money to the FI at a particular rate over a given period of time hence enabling the business to operate as well as the FI get back its money.

Therefore, the secured transactions sector presents an opportunity for much growth, for both the MSMEs and the financial institutions.

Uganda has learnt from Ghana and other nations which have pioneered using the secured collaterals registry in Africa.

Since March 2010, approximately 36,000 small loans worth almost $3bn have been granted to about 22,000 small businesses and 5,000 SMEs in Ghana while in Vietnam, law reforms and a new centralized online registry for moveable assets were launched in March 2012 and 18 months after the operation of the new registry, 170,000 loans with a value of $2.5bn were registered- loans given to about 90,000 SMEs.

As a country we too can have a success story or an even better one but it is going to take the involvement of all stakeholders and a change in attitude held by FIs, banking or non-banking, towards the low income non-land owning borrower.

Access to finance means increased growth opportunities for the SMEs and prosperity for all, at different levels.

Additional sources- Alejandro Alvarez de la Campa, IFC’s Secured Transactions and Collateral Registry Program ‘Results Framework: Methods and Findings’, November 4, 2013.

Constance E. Swaniker is a Ghanaian business woman, better known for her company, Accents & Arts, one of the leading design firms in Ghana; it produces furniture and other home accessories.

There is therefore need to address constraints to business establishments and implore leadership skills to sustain women businesses to support households economically.

When women register their businesses they will be able to open bank accounts and access finance from the financial institutions, they will be able to protect their brands, trade within and across borders, legal ownership of businesses and improving competitivess.

URSB has reduced the barriers that have hirtheto encumbered business

registration through simplified registration, establishment of regional centers, city registration points, running of mobile clinics registration processes, in order to address the informal sector challenge.

URSB has further availed registration information through its website, information education and communication materials, sensitisation and awareness campaigns all these geared at making it easy for everyone to access business registration services.

The Minister for state for Gender, Dr Kamanda Bataringaya poses for a photo with the women traders who attended a URSB organised and facilitated sensitisation on formalisation of womens businesses in February 2016.

Women traders are a target group under the Chattels Securities Act and are encouraged to expand their businesses using their personal moveable properties.

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Led by the Director Business Registration Mercy Kainobwisho, a team of seven recently went to benchmark on business licensing reforms in Zambia.

The delegation included four officials from the Uganda Registration Services Bureau (URSB), an officer from the Ministry of Justice and Costitutional Affairs, one from Capital Markets Authority and another from Kampala Capital City Authority.

The purpose of the study tour was to learn from Zambia’s experience in reforming business licensing as well as establishing a business licensing e-Registry. The team sought to study Zambia’s approach to establishing One-Stop-Shops for business entry.

In a bid to improve the doing business environment, the Zambian Government through the Private Sector Development Reform Program (PSDRP), which was later changed into the Private Sector Development, Industrialisation and Job Creation (PSDIJC) embarked on implementing a comprehensive business licensing reform programme premised on the recognition that many of the existing business licensing requirements and practices were inefficient, time consuming and costly for business formalisation.

PSDIJC is a framework of the Government of Zambia that was established to implement business licensing reforms aimed at reducing the cost of doing business in the country. PSDIJC works with government ministries and agencies to fast track and accelerate private sector reforms.

The reforms implemented by PSDIJC were informed by recommendations of the Business Licensing Reform Committee (BLRC), whose mandate was to identify, scrutinise and review all business licenses in Zambia in order to determine whether or not the business licenses were legal, necessary or efficient.

The recommendations included; the retention of some licenses, elimination, reclassification and amalgamation, reduction of

administrative and compliance costs and improving the quality of regulations and business licenses, that business licenses should be used for efficient and effective regulation and that regulatory agencies should minimise the use of licensing as a revenue collection tool, establishment of an e-registry to secure regulatory reforms, establishment of a Business Regulatory Unit (BRU) to house the e-registry and the introduction of Regulatory Impact Assessments (RIA) before major new business regulation is introduced and that BRU be charged with the responsibility of establishing a system for RIA.

There has been a number of positive outcomes realised as a result of implementation of these reforms. Key among these outcomes are; improvements in the business environment, establishment of the E-Registry and One Stop Shops, establishment of the Business Regulatory Review Agency for continuity of regulatory reforms framework and establishment of RIA to ensure effective and efficient regulations. The above has projected Zambia as a champion of Business licensing reforms in Africa and enabled the country rank as one of the best under the World Banks doing business report.

By Nabwebale Lilian AgabaRecords Officer- Business Registration

With the funding that Uganda Registration Services Bureau enjoys now from the Competitiveness and Enterprise Development Project (CEDP) of the World Bank, Business Registration has seen great changes that we hope will multiply as the project support proceeds.

The changes witnessed today have enabled us improve our internal and external modes of communication and streamlined workflows most especially for a directorate like ours which handles a lot of work and is ever busy with file movements from one floor to another.

Some of the milestones we must celebrate therefore are;

(i) The intranet: An internal private website accessible to only URSB staff for sharing information.

(ii) The Call Centre for clients’ inquiries, queries and feedback mechanism; which has just been established but we are already excited that it will be the best virtual interaction we will have with our clients

(iii) The intercom desk phones with video properties which have allowed us do internal work on our desks rather than walk office to office.

(iv) The closed user group mobile phone communication among staff for us to call each other on mobile phones with no fee charged. This has especially eased communication between the headquarters and branch/regional office staff.

(v) The NRS Computerized workflow system where upon submitting your work leaves you assured that it will move without you buying tea for anyone and it will not get

misplaced. There is also no need to beg any Registry staff to retrieve a file for you. The system has an audit trail and time stamps for tracking workflow.

(vi) The opening of the Nakivubo office, is anticipated to contribute to increased registrations and reduced queues at the main office.

Staff of the Front Desk, Client Relations/Complaints Desk, Company forms/resolutions Desk, Dispatch Desk and the Search Room now track the status of clients’ work online using the workflow computerized system.

Where there is a need to contact the Registry, they simply do a video call to the Registry staff on 8th floor. They no longer need to keep making journeys between the 6th and 8th floors to request for files or to get to know the status of files.

These changes deserve celebration because as a growing institution, more of this is needed to have the efficiency and customer focused service delivery handled in the manner it ought to be handled.

Improved modes of communication and streamlined workflows at URSB thanks to CEDP.

Reforming the business licensing regime; the Zambian testimony

By Alex AyesigyeResearch Assistant | E-registry

The Government team that visited Zambia meeting Ms Eva Jhala, the consultant who is behind the licensing reforms in Zambia.

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Vision:

“An organization that is efficient, effective, self-sustaining and customer focused in service delivery”

Mission:

“To promote, protect and register; business enterprises, intellectual property rights, civil matters, act as Official Receiver and collect Non tax Revenue through an effective records management system”.

Our core Objectives:

Professionalism | Integrity |Transparency | Accountability Punctuality | Customer care

We are responsible for the following;

• Business Registration – includes registration of companies and business names, partnerships, documents, debentures and chattels transfer.

• Official Receiver in matters of Insolvency

• Intellectual Property Rights – includes registration of Patents, Utility models, Industrial designs, Trademarks, Service marks Copyright and Neighboring Rights.

• Registration of Civil marriages and issuing single status letters.

• Collect Non Tax Revenue (NTR)

URSB at a glance

DID U KNOW?Did you know what you gain when you register and formalize your business?

Access to Financial accommodation | Access to wider markets for example the East African Community | Competitiveness- participation in bidding | Brand name and self-marketing | Royal Clientele | Liability | Intellectual Property rights- Patents, TMS, copyrights | Contribution to National Development

Uganda Registration Services BureauPlot 5 George Street, Georgian HouseP.O.Box 6848 Kampala Uganda

Tel: +256 414 233 219Fax: +256 414 250 712Call center: 0417 338 100.email: ursb@ursb.go.ug

www.ursb.go.ugfacebook.com/URSBHQ

Branches: • Mbarara- Plot 1, Kamukuzi Hill• Gulu – Plot 6B Princess Road• Arua – Plot 42/44 Packwach road• Posta Uganda - Kampala Road• UIA - Lumumba Avenue• Mbale- Plot 3, Park Crescent• Nakivubo - SSekaziga House floor 1,

Nakivubo mews