Government bureaucracy affecting investment - PSFU boss
Mr Patrick Bitature (in hat), the chairman PSFU, and KCB officials take a tour of Ebony Courts in Kitende, Wakiso during the KCB property bus tour. PHOTO BY RACHEL MABALA
What you need to know:
Corruption also named among the barriers to development
KAMPALA
Private Sector Foundation Uganda (PSFU) board chairman Patrick Bitature wants government institutions to do more in curbing bureaucracy because it is an issue that the private sector encounters regularly.
He says the slow and confusing bureaucracy negatively impact on the much-needed development agenda that the government expects to be driven by the private sector.
Speaking recently during the KCB property bus tour, Mr Bitature cited real estate developers among the victims of government bureaucracies because they must get approvals from several government agencies before putting up properties.
“Getting official documents from such institutions to put up property takes a long time, and that discourages investors,” Mr Bitature said.
He continued: “If we are to encourage growth in the sector, such issues must be addressed quickly.”
The World Bank Doing Business survey released in mid this year, giving details of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in nearly 190 economies, ranks Uganda at 166.
Another report ‘Doing Business In Uganda: 2014 Country Commercial Guide for US Companies’ that quotes the World Bank 2014 Doing Business survey ranked Uganda 132 of 185 countries for ease of doing business.
It stated that Uganda scored poorly in the categories of starting a business and getting electricity, but fared better in the categories of resolving insolvency.
According to Mr Bitature, for the private sector to encourage investments in the economy, the numerous structural burdens that entrepreneurs have to deal with must be addressed.
He said: “The tax burden must be reduced. It must be friendly to encourage growth. Infrastructural challenges like roads, electricity, water and sewerage must be solved if the private sector must succeed.”
According to the government, over the years, progress has been registered in creating an environment that enables business to thrive. However, more effort is being invested in ensuring that all red tape is minimised.
other barriers to doing business in uganda
Meanwhile, the World Bank Doing Business report also details other barriers to doing business in Uganda as high levels of corruption, poor infrastructure, a lack of access to affordable loan financing, low levels of human capital, inefficient government services, complicated land laws and frequent land disputes.
According to Transparency International’s (TI) most recent Corruption Perceptions Index, Uganda now ranks 140 out of 177 countries, down 10 places from 2012 when it was130 out of 176 countries.
