Business centre to save govt Shs3.4 billion in rent
The launch of the construction of the Business facilitation Centre was done by Prime Minister Ruhakana Rugunda (2nd right). PHOTO BY STEPHEN OTAGE
What you need to know:
- Government will have a chance to redirect about Shs3.4b it spends annually on rent to preferably other key sectors of the economy.
- The facility is expected to improve the business environment which is bogged by endless bureaucracies.
Kampala. In slightly over a year and half from today, government will have a chance to redirect about Shs3.4b it spends annually on rent to preferably other key sectors of the economy.
This, however, will only depend on whether the construction of the Uganda Business Facilitation Centre (UBFC) whose ground-breaking was presided over yesterday by the Prime Minister, Dr Ruhakana Rugunda, is completed within the agreed timelines of 18 months.
Speaking at the site where the UBFC is being constructed in Kololo, one of the upscale areas of Kampala City, the State Minister of Finance for General Duties, Mr Gabriel Gadison Ajedra, said government spends more than Shs100m on renting office spaces annually.
A statement issued by the communication specialist of the Competitiveness and Enterprise Development Project (CEDP), Ms Lillian Akot, quoted Dr Rugunda as saying: “Once the UBFC is completed, it will save government some Shs3.4 billion annually in rent that is currently being paid by three agencies.”
The statement further quoted him saying: “These savings can be redirected to meet other development priorities.”
The three agencies are: Uganda Investment Authority, Uganda Registration Services Bureau and the Capital Market Authority.
Aim
In his remarks, Dr Rugunda also said the intention of the UBFC is not only to increase the collaboration and efficiencies of the three institutions that will be housed under the same roof but also improve service delivery to the business community.
He, however, warned the contractor, M/S China National Aero Technology International Engineering Corporation (CATIC) against shoddy work, saying nothing less than excellent and timely delivery will be accepted.
According to CEDP, a government of Uganda/World Bank funded projects, coordinated by the Private Sector Foundation Uganda (PSFU), the coordinators of the project, the intention of the UBFC is to ensure less time is taken in registering and starting a business.
The PSFU executive director, Mr Gideon Badagawa, said the facility is expected to improve the business environment which is bogged by endless bureaucracies.
PSFU board chairperson Patrick Bitature, said this development is long overdue, arguing that it should have happened a decade ago.
The World Bank head of communications, Ms Sheila Kulubya said the project was funded to improve trade and the business environment.
Once the facility is completed, the government hopes it will improve the country’s ranking in the ease of doing business, which has since dropped seven places as its peers—Rwanda and Tanzania continue making strides.
