NEWS

Uganda has emerged second best in the East African Community (EAC) as an investment destination in a World Bank survey, beating Kenya, Tanzania, and Burundi with significant improvements in access to credit.

 

The country is ranked 120th on the global doing business index, one position below the 119th position held in the year 2012 out of 185 countries globally due to the income tax requirement for property purchasers.

 

"Uganda strengthened its insolvency process by clarifying rules on the creation of mortgages, establishing the duties of mortgagors and mortgagees, defining priority rules, providing remedies for mortgagors and mortgagees and establishing the powers of receivers," the doing business 2013 reports states.

 

Reforms in access to credit in the recent past have moved Uganda from the 50th to the 40th position globally in the single category.

 

Justine Bagyenda, the Bank of Uganda (BOU) executive director supervision, noted that the reach of banking services has grown overtime, with 495 bank branches in 2012, from 393 branches in 2010, and up 714 ATMs, from 625 ATMs in the same period.

 

"Technological advancements have ensured that access to cash in and cash out points is extended beyond the traditional banking system," she said.

 

Overall, the slowdown and delays in processing documents has lowered cross-border trade, as well as the inefficiencies in Mombasa have in a way all affected the competitiveness of the region, especially Kenya.

 

Uganda is undertaking a series of reforms, including the turnaround time for registering a business under the finance ministry Competitiveness and Investment Climate Strategy five-year programme launched in 2011.

 

The World Bank survey focuses on the regulatory environment for small and medium-size enterprises since they are key drivers of competition, growth and job creation, particularly in developing countries.