Industrial Division

Thank you so much, Mr Speaker, for giving me this opportunity. I listened very carefully as the President gave the State of the Nation Address, and when he spoke specifically about improving Uganda’s economy through commercial agriculture and industrialisation, I picked interest in industrialisation. I think if we must move the economy successfully, we have to look at these sectors based on the economic activity of an area, natural resources, and the comparative advantage of that area. I want to speak to the fisheries sector, specifically on Lake Kyoga in Amolatar District. I hail from Amolatar District, and I must tell you, Amolatar needs a fisheries industrial park. If Amolatar people must progress and benefit from moving into the money economy, most of us who were born and lived in a landing site know that our lives revolve around fishing. We fish to send our children to school, to access medical care, and it is the biggest source of income for our young people. Recently, the Government has been enforcing regulations on the lake, and some of these have left our people without their livelihoods. The Government of Uganda asked our people to acquire the right fishing equipment. We sold land, and our people sold their cattle to buy this fishing equipment. After buying the equipment,

Thank you for the appreciation. Thank you, Mr Speaker. I would like to thank all the Members who contributed to the debate on the State-of-the- Nation Address by the President. I have a few issues here for clarification regarding co- operatives, especially from Hon. Ongiertho, Member of Parliament for Nebbi Municipality. Honourable members, the issues related to the co-operative movement are about collective responsibility. Let us all go out and promote SACCOs. We have dairy co-operatives, especially for those from western Uganda. We have creatives such as musicians, comedians, co-operatives and artistes. My ministry recently gave them Shs 10 billion as a push-up. Let us go all out as leaders and promote the co- operative movement. We have livestock and fisheries cooperatives - Hon. Okeyoh, there you are - consumers’, housing, transport and industrial co-operatives, and multipurpose cooperatives, among others. Let us all involve ourselves, go all out and embrace all Government developmental programmes. Our role is to mobilise, sensitise and educate our people down there. Let us all go out and lure, woo, entice, attract and convince them to embrace cooperatives. That is my role. So, I am coming. We are starting our regional tours next week. Be ready. We are coming to all your regions to mobilise the people so that we can embrace cooperatives, the SACCOs. Let us go ahead and encourage the people to take Youth Venture Capital Fund, Youth Livelihood Programme, Uganda Women Empowerment Programme, Emyooga , Parish Development Model. Uganda now has over 40,000 registered cooperatives serving millions of members. Cooperatives are centres of job creation. It will drive our development agenda. Let us try to embrace it. Mr Speaker, let us embrace some of the aspects of the Sustainable Development Goals. We have goal number one, which talks about ending poverty. The second goal talks about ending hunger through farmers and SACCO cooperatives. The eighth goal talks about promoting decent work and economic growth by creating member-owned cooperatives. The ninth goal talks about promoting industry and innovation through value addition. Lastly, the 17 th goal talks about strengthening partnerships by linking cooperatives to markets, finance and Government. Once again, next week, I am coming for my regional tours to mobilise cooperatives. Thank you very much.

Colleagues, I welcome you to today›s sitting. I will amend the Order Paper to allow the Minister of Finance, Planning and Economic Development to lay documents for remission of taxes. The Clerk will be guiding along the way. Honourable members, under Article 9 of the Parliamentary Sports Club Constitution, the Rt Hon. Speaker of Parliament has appointed Hon. Karim Masaba, MP, Mbale Industrial Division, Chairperson of the Parliamentary Sports Club. Congratulations, Hon. Masaba. In the same vein, Hon. Sarah Kityo has been appointed the manager. Congratulations, Hon. Sarah Kityo. Honourable colleagues, when we reconciled our records, it was discovered that some members were designated to more than one committee. I will therefore withdraw Hon. Mercy Kanyesigye from the Committee on Government Assurances and Implementation, since she was designated as

335 THE TWELFTH PARLIAMENT OF UGANDA TUESDAY,14 JULY 2026 Also related to that is the fact that my ministry is also responsible for the Tenfold Growth Strategy, which is supposed to propel the Ugandan economy from $50 billion to $500 billion in the next 30 years or so. We also have the updated Diagnostic Trade Integration Study, which is ongoing to improve the economy of the country and to help us in all that we are talking about here. We have the National Industrial Policy of 2020 and Museveni-economics, which presupposes that we must embark on the enablers for socio- economic transformation. What are these enablers? Infrastructure, electricity, irrigation, social services, security, financial services, ICT, among others. Moving away from subsistence Agriculture to commercial Agriculture; from lower-middle-income status to upper-middle- income status. All this is in our ministry. As we move on to upper-middle income status, my dear colleagues, as leaders, let us go down to the grassroots and tell our people to once again shift from subsistence Agriculture to modern or commercial Agriculture, so that we can have what you call sustainable development goals. Thank you. (Applause.)

I thank you, honourable minister, for giving way. The clarification I seek concerns industrialisation and how the President is encouraging Ugandans to join the industrial sector. As we all know, the industrialisation sector has been taken away by foreign nationals. If you move, for example, to Luwero, industry by industry, most of the industries are foreign-owned. Honourable minister, clarify which industries you would wish Ugandans to join in the industrialisation process. Thank you.

We encourage our indigenous Ugandans to go into the manufacturing sector. That is the reason we have put up institutions like the UDB to help them access money, but I think the most important thing is: are we adding value to what we are producing? Whoever puts up a factory, whether you are a Ugandan or a foreigner, as long as you are employing our people, you are welcome. (Applause.) The second issue was about Karamoja. Mr Speaker, I have to say that Karamoja has a special place in our development agenda as a country and we are creating a number of opportunities to develop it. One of the things that we are focusing on in our sector is having factories in Karamoja, and so far, as Hon. Remigio said, we have two industries: cement and clinker. Because of that factory, we are going to save close to 80 per cent of the money that has been used for clinker for road construction, using our local materials from Karamoja. We also have good news for the people of Karamoja. We are finalising a feasibility study to establish a multi-billion-dollar industrial park in the subregion. We hope that when this comes up, it will create more jobs and investment opportunities for the Karamoja people. Regarding the aspect of drought and others, we had a discussion, and I know the Prime Minister will comment on that – (Interjection) - Hon. Mwiru, my brother, I am stressed with – (Laughter)

Hon. Mwiru, you can understand. The second-to-last issue concerned the honourable member from Gomba, who said that the President has been threatening to fight corruption. I have a different view. The President is not threatening, but is actually taking action, and the writing is on the wall. We are happy and glad to be having a President who says what he means and means what he says. He is walking the talk, and we should be proud of our President. (Applause) Hon. Molly asked an important question and said, “As sector commanders, what are you doing to fulfil the intention of the President in the State of the Nation Address?” In our sector of industry, we are focusing on creating value for the things that we are producing, especially agro-industrialisation and also import substitution. We would like to manufacture everything we import into the country. For example, honourable colleagues, you may need to know that almost 40 per cent of the honey taken in European countries is made in laboratories, yet here in Kabale, Buganda and Arua, we have a lot of honey. For example, our focus now is on processing honey so that we can export it to these countries – (Applause) - so that they get out of this honey made in laboratories and start enjoying the natural honey that comes from Africa. Lt Gen. Kavuma, I cannot agree with you anymore. We have made good progress over time. We used to import sugar, but now we have excess sugar and also industrial sugar. The sugar that is used to produce soda and others is processed here from Kinyara. We used to import carbon dioxide which is used in soda. We now have factories that manufacture it. We are currently importing close to $1 billion of steel and steel products, but we have now almost set up factories that have reduced this import substantially. So, we are producing steel here. Companies like Roofings and Tembo are setting up in Tororo and Kigezi Subregion to take advantage of the iron ore stocks that we have in our country, which is approximately 312 million tonnes. We want to utilise this to produce steel and steel products. Mr Speaker, the statement of the President was very important and I am glad that Members of Parliament are appreciating it. Let us join hands with the President to industrialise our country,

137 THE TWELFTH PARLIAMENT OF UGANDA THURSDAY, 11 JUNE 2026 workers in the Financial Year 2016/2017 to over 2,319,683 workers in the Financial Year 2024/2025. This is in addition to the 503,738 public sector jobs and 10,513,014 informal jobs reported in April 2026. This growth in jobs confirms that Uganda’s economy is not only growing but also creating productive jobs for Ugandans. This is on account of deliberate Government interventions to create jobs through industrialisation and wealth creation. However, creating more productive jobs for our rapidly growing population remains an urgent economic priority. This is why the Government is investing in ATMs and their enablers to create jobs at scale, especially for young people. Going forward, every major intervention in the national budget will ultimately be judged by its contribution to jobs, incomes and improved livelihoods. Fiscal performance Mr Speaker, the Government’s capacity to finance its development agenda using domestic resources continues to strengthen. This financial year, domestic revenue collections are projected at Shs 35.7 trillion, compared to Shs 32.3 trillion collected the previous financial year. This Financial Year 2025/2026, domestic revenue from taxes, non-tax revenues and local government revenues funded up to 80.9 per cent of the total discretionary budget of Shs 44.1 trillion. The discretionary budget includes all funds allocated to implementing programmes, excluding debt and other Government obligations. This represents significant progress towards fiscal self-reliance and reduced dependence on external financing. Mr Speaker, increasing domestic revenue is not merely a fiscal objective. It is a sovereignty objective. A country that finances its development from its own resources enjoys greater policy independence, resilience and sustainability. Therefore, the Government will continue to strengthen domestic revenue in line with the domestic revenue mobilisation strategy, while preserving incentives for investment, production and enterprise growth. In Financial Year 2026/2027, domestic revenue is projected to increase to Shs 45.6 trillion from Shs 35.7 trillion in Financial Year 2025/2026, equivalent to 15.9 per cent of GDP. The additional resources will support investments in wealth creation, ATMs and their enablers. Public Debt Mr Speaker, as of December 2025, Uganda’s total public debt stood at $34.86 billion, equivalent to approximately Shs 126.19 trillion. Of this, external debt amounted to $15.84 billion, while domestic debt was $19.02 billion. This translates into a debt-to-GDP ratio of approximately 53.0 per cent. Public debt should always be assessed alongside the assets it finances and the economic returns it generates. Over the past 10 years, Uganda’s debt has financed strategic investments that are transforming the productive capacity of our economy. These investments include: 1. Integrated transport infrastructure, which accounts for 31.1 per cent of the debt; 2. Electricity infrastructure, which accounts for 19.3 per cent; 3. Water infrastructure, which accounts for 10.3 per cent; 4. Agro-industrialisation, which accounts for 9.2 per cent; 5. Education and health, which account for 7.7 per cent; 6. Housing and urban development, which account for 6.3 per cent; 7. Industrial parks and industrial development, which account for 2 per cent; and 8. Other investments such as National Backbone Infrastructure to extend internet, Science, Technology and Innovation, and regional development, which account for 7.0 per cent. Mr Speaker, Uganda’s public debt remains sustainable and is projected to stay so over the medium and long term.

140 THE BUDGET SPEECH, 2026 a) Agro-industrialisation; b) Tourism development; c) Mineral-based industrial development including oil and gas; d) Science, technology, and innovations including ICT and the creative arts. These sectors are deliberately selected because they represent Uganda’s strongest comparative advantages and possess the greatest potential to generate exports, jobs, incomes and investment. Together, they form the engine of the Tenfold Growth Strategy. The objective is simple: To convert Uganda’s natural resources, human capital and innovation into wealth, jobs and prosperity. I would now like to detail each. Agro-industrialisation Mr Speaker, agriculture remains the backbone of Uganda’s economy. It employs millions of Ugandans, supplies raw materials to industry, produces exports and sustains livelihoods across the country. However, Uganda’s future prosperity will not come from producing more raw commodities alone. It will come from increasing productivity, expanding value addition, strengthening agro- processing and improving market access. The Government, therefore, continues to invest strategically across the entire agricultural value chain. Agricultural research and innovation Mr Speaker, agricultural transformation begins with science. This year, the Government made significant advances in agricultural research and genetics. The anti-tick vaccine facility at the National Livestock Resources Research Institute in Nakyesasa was completed and is now operational, producing about 36 million doses, serving 18 million livestock in the first year. The Government also produced Foot-and- Mouth Disease vaccines and continued to advance research on disease resistant crops and livestock breeds. These investments will reduce production losses, raise productivity and increase farmer incomes. Water for production and irrigation Climate change continues to expose farmers to significant weather-related risks. The Government is, therefore, accelerating investment in irrigation and water for production infrastructure to reduce dependence on rainfall. Progress was registered on several major irrigation projects including Kabuyanda Dam in Isingiro District, Atari in Bulambuli District, Wadelai in Pakwach District, Acomai in Bukedea District, Namaitsu in Bududa District, Chembombai in Bukwo District and Sipi Irrigation Scheme in Bulambuli District. Solar-powered irrigation schemes are also being rolled out across the country. These investments will support all-year-round production, increase resilience and improve agricultural productivity. Mechanisation and animal health The Government continued developing Regional Agricultural Mechanisation Centres and Animal Disease Control Centres to improve efficiency and productivity in the agriculture sector. Progress was registered in Kiruhura, Mbale, Kiryandongo, Bunyangabu, Nakaseke, Katine and several other districts. These facilities are improving access to modern agricultural equipment, veterinary services and disease surveillance systems. Expanding commercial coffee production Mr Speaker, coffee remains one of Uganda’s most important export commodities. The Government has, therefore, expanded coffee cultivation into northern and eastern Uganda. During the year, two coffee mother gardens were established and over 1.4 million coffee seedlings distributed to 7,532 farmers in

142 THE BUDGET SPEECH, 2026 Ugandan products, attract strategic investors and mobilise the diaspora to support national development. 6. On tourism infrastructure, the Government continued to invest in tourism infrastructure and attractions. Progress was made in the development of museums and cultural heritage sites in Moroto and Dokolo. Investments are also underway in the Rwenzori Central Circuit Trail, Kitagata Hot Springs and visitor facilities at the Source of the Nile in Jinja, including an observatory deck and a modern restaurant. The Government also established a new wildlife education centre in Mbale. These investments are enhancing visitor experiences and strengthening Uganda’s competitiveness as a tourism destination. In Financial Year 2026/2027, the priorities under tourism are the following: Mr Speaker, the Government has allocated Shs 567.32 billion to continue developing the tourism sector next financial year. The priority interventions will include: i) The branding and marketing of Uganda as a tourism and investment destination; ii) Tourism infrastructure development; iii) Construction of highway sanitation facilities and tourism site refreshment centres; iv) Improving and enforcing hospitality standards and training; v) Conservation and wildlife protection to increase wildlife population across the national parks; vi) Health tourism; and vii) Economic and commercial diplomacy. I now come to mineral-based industrial development. Mr Speaker, Uganda is richly endowed with minerals. However, sustainable transformation will come not from extracting minerals, but from processing and adding value to them. The Government’s strategy is, therefore, to transform mineral wealth into industrial wealth, and the following steps have been taken in that direction: i) The Government intensified mineral exploration and quantification. Geochemical surveys for gold were undertaken in Kassanda, Kiboga and Mubende districts. Exploration confirmed an estimated 300 million tonnes of iron ore in Kabale, Rubanda, Rukiga, Kisoro, Kanungu, Kiruhura and Hoima districts. Surveys of copper prospects were conducted at the Bukusu Carbonatite Complex, which also has the potential for rare earth elements as well as at the Boma and Lwensankala sites. Evaluation of uranium, manganese, lithium and nickel deposits is also ongoing across the country. ii) To add value to Uganda’s limestone, a new clinker factory was commissioned in Moroto District to produce inputs for cement production. The factory operates a 6,000-tonne-per-day clinker production line with annual production capacity of two million tonnes of clinker and three million tonnes of cement. The project is expected to save the country up to $260 million, annually, in clinker imports and create up to 4,000 jobs. iii) The Government continued to make substantial progress towards the first oil. Construction of the East African Crude Oil Pipeline (EACOP) and the Central Processing Facilities is at advanced stage and nearing completion. The Tilenga and Kingfisher upstream development projects also registered significant progress despite logistical challenges arising from the ongoing conflict in the Middle East. During the year, 51 additional wells were drilled, bringing the cumulative number to 199 wells, exceeding the 189 wells required for first oil production later this year. iv) The Government completed the first phase of Kabalega International Airport, providing critical logistics infrastructure to support oil and gas development, tourism, trade and investment in the Albertine region.

143 THE TWELFTH PARLIAMENT OF UGANDA THURSDAY, 11 JUNE 2026 v) Through Uganda National Oil Company, the Government continued the bulk procurement of petroleum products. This has strengthened fuel security and ensured uninterrupted supply despite disruptions in global energy markets. Consequently, Uganda experienced minimum fuel price volatility compared to several countries in the region. vi) In addition, the Government, through the Uganda National Oil Company (UNOC), acquired a 20.15 per cent stake in the Kenya Pipeline Company. This is a strategic investment to strengthen Uganda’s energy security and enhance the reliability of fuel supply. Given that over 95 per cent of Uganda’s refined petroleum products are imported through the Kenyan corridor, this investment will help secure access to critical petroleum infrastructure and support more predictable fuel supply and pricing. Financial Year 2026/2027 priorities for minerals and oil and gas Mr Speaker, Shs 473.51 billion has been allocated for mineral-based industrial development, mining and oil and gas. The priority areas include: i) Continued mineral exploration, quantification and certification; ii) Continued capitalisation of the National Mining Company; iii) Establishment of the mineral market and buying centres; iv) Operationalisation of EACOP; and v) Development of the oil refinery. Science, technology and innovations Mr Speaker, no country has achieved rapid economic transformation without innovation. Science, Technology and Innovation (STI), including ICT and the creative arts, are critical drivers of productivity, industrialisation and competitiveness. They provide the tools to modernise production, create high-value jobs and expand Uganda’s participation in the global knowledge economy. For Uganda to achieve a 10-fold expansion of the economy, STI is going to be at the centre of our development strategy. Mr Speaker, commissioning the Kiira vehicle plant in Jinja marked a major milestone in Uganda’s industrialisation journey and demonstrates the country’s growing technological capabilities. The plant has the capacity to produce up to 2,500 buses annually. Despite being in its early stages of operation, Kiira Motors has already made bus sales worth Shs 21.6 billion and received orders for 450 buses from Uganda and the region. The quantity, quality and reliability of its products were further demonstrated through the successful “Pearl to Cape” Electric Expedition, during which the Kayoola Electric Bus traversed more than 13,000 kilometres across Africa. Mr Speaker, to date, more than 25,000 electric vehicles, including buses, motorcycles, and bicycles have been produced locally with up to 40 per cent local content. In a further boost to the sector, Soleil Power completed the construction of East Africa’s first production scale lithium-ion battery assembly plant in Uganda. This has strengthened domestic manufacturing capacity and positioned the country as a regional hub for electric mobility and clean energy technologies. On pharmaceuticals and biotechnology, the Government continued to strengthen pharmaceutical manufacturing and biotechnology as part of the efforts to build a competitive pathogenic economy. Uganda is deliberately supporting the domestic production of medicines, vaccines, diagnostics, and other health products, while promoting research, innovation, import substitution, export growth, and resilience in the health sector. Significant progress was registered through strategic investments in and the Government procurement from local pharmaceutical and biotechnology companies, including Microhaem Scientifics, Dei BioPharma, Jena Herbals, and other emerging manufacturers.

148 THE BUDGET SPEECH, 2026 Energy development Mr Speaker, reliable and affordable energy is essential for industrialisation and socioeconomic transformation. The Government continues to invest heavily in electricity generation, transmission and distribution infrastructure. In the Financial Year 2025/2026, the Government achieved the following in energy development: a) Continued development of hydro, solar and other energy projects alongside preparatory work for future nuclear investments. Installed generation capacity now stands at 2,098 megawatts. The Government’s medium- to long-term target is 52,482 megawatts to support industrialisation, urbanisation and economic growth. b) Completed and continued construction of multiple lines, including the Kole-Gulu- Nebbi-Arua line 132 KV, the Kampala Metropolitan transmission line 132 KV, including two associated mobile substations, Mbarara, Kabarole 132 KV, Karuma-Tororo 400 KV, Tororo resource 400 KV, Mutundwe-Entebbe 132 KV and Lira-Gulu-Agago 132 KV. Good progress has also been made on substations serving industrial parks in Mbarara, Kapeeka, and the Kabalega Petrochemical Industrial Park. c) The share of households in rural areas connected to grid electricity has nearly doubled in the three years from 6.8 per cent in the Financial Year 2021/2022 to 11.4 per cent in the Financial Year 2024/2025. d) Through the Uganda Energy Credit Capitalisation Company, Government commenced construction of four small mini-hydro power sites expected to generate 5 megawatts of electricity. These sites will be completed in March 2027 and will provide reliable power to very hard- to-reach and remote areas. Further, under the Electricity Access Scale-Up Project, 419,592 off-grid solar connections have been made countrywide. Financial Year 2026/2027 Priorities for the Energy Sector Mr Speaker, the Government has allocated Shs 2.07 trillion to energy development and the priority interventions include: i) Expansion of generation capacity by commencing the 380-megawatt Kiba hydro-electricity plant, a floating solar plant at Isimba, and 500 megawatts of utility scale solar in the Elgon and Acholi subregions; ii) Preparatory work for nuclear energy generation at Buyende; iii) Expansion of transmission and associated substation infrastructure; iv) Rural electrification; and v) Industrial power connections. Investing in People Mr Speaker, economic transformation is ultimately about people. A healthy, educated, skilled and productive population is indispensable for sustained growth and shared prosperity. That is why the Government continues to allocate a large share of the discretionary budget to human capital development, i.e. health, education, water and sanitation, and social protection. During Financial Year 2025/2026, the following milestones were achieved: Health Under health, Mr Speaker, the Government sustained its policy of progressively increasing investment in essential medicines and health supplies. Accordingly, funding through the National Medical Stores was increased by Shs 145.33 billion to Shs 862.93 billion in Financial Year 2025/2026. The Government will continue to increase domestic financing for essential health commodities with the aim of substantially

151 THE TWELFTH PARLIAMENT OF UGANDA THURSDAY, 11 JUNE 2026 The following are some of the achievements: i) Government has continued to support older persons through the Social Assistance Grant for Empowerment (SAGE), which has cumulatively reached 489,673 beneficiaries with a total of Shs 836.1 billion. In addition, the Special Enterprise Grant for Older Persons (SEGOP) has supported 17,245 older persons with approximately Shs 13 billion; ii) Under the National Special Grant for Persons with Disabilities, 72,772 beneficiaries have received Shs 48.5 billion across 171 local governments; iii) The Youth Livelihood Programme has financed 24,859 projects, benefitting 275,034 youth at Shs 195.4 billion, while 57,849 youth have benefitted from the Youth Venture Capital Fund; iv) Generating Growth Opportunities and productivity for Women Enterprises (GROW) project has extended Shs 111.1 billion in loans to 4,889 beneficiaries, while the Uganda Women Entrepreneurship Programme (UWEP) has cumulatively supported 244,805 women with Shs 153.5 billion; and v) Government has continued to negotiate bilateral labour agreements to protect workers’ rights, promote decent work and expand overseas employment opportunities for skilled Ugandans. Financial Year 2026/2027 priorities for social protection Next financial year, Government has allocated Shs 173.55 billion for social protection, which will focus on: i) Expanding economic empowerment programmes; ii) Strengthening labour standards; iii) Supporting youth employment initiatives; iv) Promoting women’s economic participation; v) Enhancing social protection systems; and vi) Establishing a robust labour market information system. Mr Speaker, overall, Shs 13.56 trillion has been allocated for the next financial year to invest directly in the people of Uganda through health, education, social protection and water and sanitation. This investment reflects Government’s conviction that people are Uganda’s greatest asset. Enabler 4: Industrial Development and Manufacturing Mr Speaker, nations achieve prosperity not by exporting raw materials, but by transforming them into high-value products. For this reason, Government places high priority on industrial development, manufacturing and value addition. Besides Government investment in manufacturing under the Agro-industrialisation, Tourism, Minerals and Science, Technology and Innovation (including ICT) (ATMS) already highlighted, the following milestones have been achieved in this financial year: a) Government continued investing in the development of industrial parks. The aim is to lower investors’ establishment and operating costs and drive industrial growth. As a result, the number of formal factories has cumulatively risen to 10,437, of which 690 are located within industrial parks; b) The Government continued capitalising Uganda Development Cooperation (UDC) to de-risk private investment in critical areas. UDC’s capital investments have surpassed Shs 1.5 trillion with co- investments across key value chains including textiles i.e. Fine Spinners, agro-processing i.e. Biyinzika Enterprises Limited and Bukona Agro-processing Limited and pharmaceuticals i.e. East African Medical Vitals, Sanga Vetchem Limited and Alfasan (U) Ltd. c) The Government through UDC also invested in the local construction sector. UDC invested in Abubaker Technical Services, a Ugandan firm delivering key national roads including Busunju-Kiboga-

152 THE BUDGET SPEECH, 2026 Hoima (145km) and Matugga-Semuto- Kapeeka (41km), among others. UDC also invested in ETATS Construction Company, currently constructing the Bugiri-Namutumba Road (24km) and the Buwenge-Kaliro Road (48km), among others. d) The Government completed the Special Economic Zone at Entebbe International Airport to promote high value exports. Several firms, particularly in the fresh produce exports and light manufacturing, are setting up operations. e) Continued expansion of Presidential Zonal Hubs, which are tackling youth unemployment by providing practical industrial and vocational skills. To date, 82,790 youth have been trained and the number of hubs has grown to 28 nationwide. Mr President, thank you very much for this initiative. Financial Year 2026/2027 priorities for manufacturing and industrial development Mr Speaker, the Government has allocated Shs 1.03 trillion to the manufacturing programme for FY 2026/2027. Priority interventions include: i) Additional capitalisation of UDC to drive industrial development; ii) Industrial infrastructure development, particularly industrial parks including new fully serviced plug and play parks; iii) Value addition to agricultural raw materials and minerals; iv) Supporting market access for Ugandan manufactured products; v) Strengthening the functionality of special economic zones; vi) Industrial research including the establishment of regional industrial incubation hubs. Market access for wealth creators Wealth creators need access to both domestic and export markets. Expanding the domestic market requires higher household incomes and increased purchasing power to stimulate demand for locally produced goods and services. Export growth, on the other hand, requires deeper regional integration to access larger markets within the East African Community, COMESA, and the African Continental Free Trade Area. These opportunities are complemented by preferential and duty-free market access arrangements negotiated with key partners including the European Union, the United Kingdom, Russia, Serbia and the countries in the Middle East. To expand both domestic and export markets, the Government will continue investing in standards, quality assurance, certification and market intelligence to enhance the competitiveness of Ugandan products and services. To this end, the Government has so far implemented the following: i) Strengthened certification services to enhance efficiency. Additional personnel have been recruited and trained to increase capacity of the Uganda National Bureau of Standards to undertake certification, surveillance and enforcement of standards. Following automation, the turnaround time for import inspection reduced from three weeks to four hours. Product testing was reduced from 30 days to 14 days and product certification reduced from 180 days to 45 days. ii) Decentralisation and modernised certification services to enhance access. Construction and equipping of engineering testing laboratories are ongoing and expected to be completed by September 2026. The Government also commenced construction of regional laboratories in Mbale, Gulu and Mbarara. iii) Developed 450 standards for products and services and issued permits to 4,500 products.

86 ADDRESS ON THE STATE OF THE NATION, 2026 more politeness to non-performers who want leadership for their own ego and personal interests. This is the “ Kisanja No More Sleep”. The story of the NRM and Uganda starts in the early 1960s. Personally, I started waking up our people in 1959 when I visited Mbarara Stock Farm as a junior secondary one pupil at Mbarara High School. Having come from Ntungamo area, which was democratically outside the money economy, and everybody was on okukolera ekida kyonka (working only for the stomach; subsistence) - combined with the school education, when we came to know about the enclosure movement in the UK (Kusiba Sengenge) , for agriculture, the industrial revolution in Europe, etc. By 1965, the sectarian politics of the political groups notwithstanding, our ideas about the socioeconomic transformation had coalesced. It was clear that the small enclave economy of the British, of the 3 Cs and 3 Ts, was a disaster for the majority of the people. You want proof? Just look at the infant mortality and the average life expectancy in 1962. There were 128 per 1,000 live births, and life expectancy was 46.8 for everybody – on the average. We soon grasped the importance of having vertically and horizontally integrated national economies. In the 20 years of chaos between 1966 and 1986, our views were eventually crystallised into the 10-point programme of Kanyaara, where we wrote this document in 1984. Point No.5 of those 10 points runs as follows: “Building an independent, integrated, self-sustaining national economy”. However, for the people to participate in the vertical and horizontal integration of the economy of the country, they had to join the money economy first and move out of the traditional pre-capitalist economy of working for ekida kyonka; working only for the stomach. Since my nomadic family had migrated from Ntungamo to Nyabushozi, it was good luck that we started our activities there. These involved sensitising the population of the cattle corridor to stop nomadism, make enclosures around their land using sengenge, engage in commercial agriculture with ekibaro , cura, and aimar (calculation for profit and maximum returns). As you can see in the videos, let them show us some of the families we started with, if they are featured in the videos, and their testimonies. (A video presentation was made.)

When they are speaking Rugwere, they speak Runyankore in their own way, but I can follow everything. They had some local pigs before, but when the Parish Development Model (PDM) funds came in, they bought modern ones. The Bagwere speak Runyankore and mix it with Runyarwanda. Is Kubyara Runyarwanda? - No, Runyarwanda is a bit different. They now have pigs and Ssekkokko . I did not know anything about Ssekkokko myself. They are the ones who exposed me to it. Once people get capital, they will do their own things, like Ms Nabutono there. Uganda has gone through five phases of positive development. These are the recovery phases for bringing back some of the three Cs and Ts of the colonial enclave economy and ending the informalisation of the economy through magendo (smuggling), Kibaanda (forex black market), and okusamula (speculation), following the destruction of the economy by Idi Amin. Expanding the enclave economy and diversifying it - that is how the dairy sector changed the cattle corridor. The cassava is changing many parts of Uganda. These are totally new cash products - Value addition to some of the raw materials, for example, gold, and the knowledge economy of the automobiles, vaccines, computers et cetera. What is “high-sounding sloganeering” there? The other gentleman was saying that it is just slogans. These are achievements on the ground. Let Mr Gawaya go near the Mbale Industrial Park. Show it to us – (A video presentation was made) - how can you call that a slogan? I think they were saying that there were more than 80 factories and 12,000 workers in that area. These are achievements on the ground. How can such a park be a desert with no water, peace, or production? Yes, there are problems with issues like drugs in health centres. Another time, I will discuss the issue of service delivery in more detail. That is why the National Resistance Movement (NRM) introduced democracy from the very beginning by getting people to elect the committees of the Resistance Councils. Especially in the Bukedi area, Force Obote Back Army (FOBA) - the group that was saying they were following Obote - started killing those elected leaders until we crushed it. Elect people who help in exposing those mistakes. You have the power. Another time, I will speak about that because the parishes are in Uganda. Everywhere, there is local leadership, especially at the sub-county level, and there are councillors. Why should things go wrong when all those leaders are there? Of course, even the Government is also responsible because there are the Gombolola Internal Security Officers (GISOs) in every sub-county. Why would things go wrong, and the GISOs or the District Internal Security Officer (DISOs) do not know? The facts of the matter are that with the limited waking up, where 67 per cent of the homesteads, as compared to 9 per cent - in 1962, only 9 per cent of the people were in the money economy. When I checked in 2013, only 32 per cent were. However, right now, it is 67 per cent of the homesteads. Uganda has graduated from the least developed countries to a lower-middle-income country. Our Gross Domestic Product (GDP) rose from Shs 3.9 billion in 1986 to Shs 69.3 billion by the forex exchange method and Shs 197.1 billion by the Purchasing Power Parity (PPP) method. The GDP per capita has risen to $1,278, while the threshold for lower-middle-income status is $1,136. Household poverty has declined from 56 per cent in 1992 to 16.1 per cent now. Life expectancy was 43 years in 1986. It was 46 in 1982, but had come down to 43 by 1986 because of the chaos, which Amin created. It is now 68 years old. The infant mortality rate was 122 for every 1,000 children born alive. It is now 36.

79 THE TWELFTH PARLIAMENT OF UGANDA THURSDAY, 28 MAY 2026 On behalf of the Government of Uganda, I commit to continue building on the strong foundation already in place by effectively leading a robust service delivery team, both political and technical that responds to the needs of our people by strengthening the link between the Executive and Legislature, and by ensuring continued availability of Government business in this Parliament and making sure that the ministers regularly attend and provide timely responses to Parliament. Mr Speaker, the priorities of the NRM Government are very clear as outlined in the National Development Plan IV and the 2026/2031 NRM Manifesto, aimed at wealth creation, improving household incomes and expanding our economy from an estimated $68.4 billion by the end of June 2026 to $500 billion by the year 2040. Mr Speaker, this growth will be anchored on strategic investments in our ATMs, which are: Agro- industrialisation (PDM, Emyooga , et cetera), Tourism development, and Mineral development, including oil and gas, science, technology, innovation, and creative industry development. In addition, the Government will invest in enablers for the ATMs to deliver on planned growth. These enablers are: 1. Peace and security, which is a prerequisite for economic stability. 2. Infrastructure development. Here, I am talking about the Standard Gauge Railway, roads, electricity, and the metre gauge rehabilitation, water, sanitation, and environmental conservation. Honourable members, health, education, information communication technology, electricity generation, transmission and distribution, industrial parks and free zones, administration of justice, law and order, effective legislation and oversight - Mr Speaker, effective management of climate change, environmental and natural resources, and disasters as they occur. Fellow leaders, Ugandans expect quality services from us. We can effectively serve our people through proper implementation, monitoring and evaluation of Government interventions. I want to reassure you that this will enable us to achieve better results with even limited resources. Mr Speaker, leadership is a gift from God. I know that the role of the Prime Minister and Leader of Government Business in Parliament requires commitment, patriotism, teamwork and sacrifice. I, therefore, request your continued support and prayers as we embark on this journey together. Mr Speaker, I recommit to continuing to serve our people to improve service delivery and socio-economic transformation. To the people of Kakumiro District and the greater Kibaale, thank you for electing me to the Ninth, 10 th , 11 th and now the 12 th Parliament. In conclusion, I once again thank you, Mr Speaker and Members, for approving my reappointment as the Prime Minister of the Republic of Uganda. In the same vein, I appreciate His Excellency the President for the trust and confidence placed in me. I pledge continued commitment, collaboration, and teamwork during the “No corruption, no more sleep” term of office, as our country takes a qualitative leap into upper-middle-income status. For God and My Country. (Applause)

9 THE TWELFTH PARLIAMENT OF UGANDA THURSDAY, 14 MAY 2026 56. Kirungi Annet Pamela Woman Representative Kabarole NRM 57. Kyogabiirwe Jackie Muganda Woman Representative Kyegegwa NRM 58. Lanyero Christine Awany Woman Representative Nwoya NRM 59. Logose Sarah Annet Woman Representative Butaleja NRM 60. Lokii John Baptist (Dr) Matheniko County Moroto NRM 61. Lokoru Albert Tepeth County Moroto Independent 62. Lokoru Stephenson Yoyo Chekwii East County Nakapiripirit NRM 63. Longoli Simon Peter Chekwii County (Kadam) Nakapiripirit NRM 64. Lubega George Willy Bugangaizi South County Kakumiro NRM 65. Lubowa Ssebina Gyaviira Nyendo-Mukungwe County Masaka City NUP 66. Lugoloobi Amos Ntenjeru County North Kayunga NRM 67. Kiwanuka Sulaiman Nakifuma County Mukono NUP 68. Kuteesa Mary Kamuli Mwenge County South Kyenjojo NRM 69. Kyeyune Ivan Nakasongola County Nakasongola NUP 70. Lakisa Mercy Faith Woman Representative Alebtong NRM 71. Lenia Charity Kevin Vurra County Arua NRM 72. Mutebi Benard Mugoya Bulamogi County Kaliro Independent 73. Katooko Sylivia Damba Woman Representative Kibuku NRM 74. Kayogera Yona Busiki North County Namutumba Independent 75. Kiti Peter T’oo County Bukwo NRM 76. Lolem Micah Akasile Upe County Amudat NRM 77. Locap Peterkhen Bokora East County Napak NRM 78. Linda Irene City Woman Representative Fort Portal City NRM 79. Lokubal Emma Woman Representative Nabilatuk NRM 80. Katusiime Adrine Woman Representative Sheema NRM 81. Loluk Fidelis Logwee Napore West County Karenga Independent 82. Komakech Christopher Aruu County Pader NRM 83. Muzaid Khemis Arua Central Division Arua City FDC 84. Lamwaka Catherine Woman Representative Omoro NRM 85. Kiwanuka Abdallah Mukono County North Mukono NUP 86. Kyeyune Haruna Kasolo Kyotera County Kyotera NRM (The House was suspended at 11.42 a.m.) (On resumption at 1.00 p.m., the Deputy Clerk, Parliamentary Affairs presiding.) 87. Lokwang Hillary Ik County Kaabong NRM 88. Lowila CD Oketayot Woman Representative Pader NRM 89. Lugoloobi Willy Bageyente Bujumba County Kalangala NRM 90. Lugwar Benson Agogo North County Agago Independent 91. Lukyamuzi David Kalwanga Busujju County Mityana NUP 92. Kiwanuka Keefa Kiboga East County Kiboga NRM 93. Maala Zahrah Luyirika Makindye Division West Kampala NUP 94. Makumbi Henry Kamya Mityana County South Mityana NRM 95. Mariam Seif Woman Representative Iganga NRM 96. Mafabi Asha Nabulo Woman Representative Sironko NRM 97. Mamawi James Adjumani East County Adjumani Independent 98. Masaba Karim Industrial Division Mbale City Independent 99. Matembu Chriss Wataka Bubulo County West Manafwa Independent 100. Matovu Emmanuel Magoola Busiro County East Wakiso Independent 101. Mawanda Micheal Maranga Igara County East Bushenyi NRM

Madam Speaker, the Budget estimates for Financial Year 2026/2027 were prepared under the theme, “Full monetisation of Uganda’s economy through commercial agriculture, industrialisation, expanding and broadening services, digital transformation and market access”. The budget estimates have been arrived at after extensive consultations with the stakeholders and His Excellency the President. The budget estimates for the Financial Year 2026/2027 amounts to Shs 84.39 trillion, of which appropriation is Shs 47.16 trillion and statutory expenditure amounts to Shs 37.23 trillion. This shall be financed through domestic revenue, Shs 44.18 trillion, the Uganda Petroleum Fund, Shs 1.44 trillion, budget support, Shs 1.22 trillion, domestic borrowing, Shs 11.97 trillion, project support, Shs 11.27 trillion, domestic refinancing, Shs 13.97 trillion and local revenue from local governments, Shs 339 billion. Madam Speaker, Financial Year 2026/2027 will be the first year of implementing the NRM Manifesto for the period 2026-2031. It will also be the second year of implementing the National Development Plan IV, which is the first plan to deliver our first Tenfold- Growth Strategy, aimed at expanding the economy to at least $500 billion by 2040. The budget for next financial year will, therefore, focus on consolidating the gains so far achieved and expanding investment in science, technology and innovations, as well as wealth creation. The key budget priority investments are the ATMS and their enablers. The ATMS are: Agro-Industrialisation, Tourism Development, Mineral-Based Industrial Development, Science, Technology and Innovations, including the creative industry. The Enablers are: peace, security and rule of law, transport infrastructure, which covers roads, railway, air, and water transport. Electricity: industrial parks development, human capital development, which covers education, health and water. Irrigation and environment and wealth creation funds, which cover PDM, UDB funds, UDC and Emyooga, among others. Madam Speaker, I wish to thank you. I also thank the House, the sectoral committees and the Committee on Budget for the support during this process. I submit for the consideration of the House, these combined efforts provided during the progressing and processing of the budget estimates for the Financial Year 2026/2027.

18921 THE ELEVENTH PARLIAMENT OF UGANDA FRIDAY, 24 APRIL 2026 e-mail addresses, among others, to enable easy traceability and independent verification. ii) The Minister of Finance, Planning and Economic Development should ensure that in subsequent years, the draft budget estimates for state-owned enterprises and public corporations comprehensively capture the detailed budgets of all public corporations and state enterprises as required under Section 12 (11)(f) of the PFMA. Madam Speaker, this House is supplying money to these corporations and we need to know our shareholding and the details of these companies. Where are they and who are the directors? 5.5 Replenishment of the Contingencies Fund Madam Speaker, Section 25 of the PFMA, Cap 171 provides that the Contingencies Fund shall be replenished every financial year with an amount equivalent to 0.5 per cent of the appropriated annual budget of the Government of the previous financial year. The approved budget for Financial Year 2025/2026 was Shs 72,376.481 billion. Therefore, the Contingencies Fund for Financial Year 2026/2027 is expected to be replenished by Shs 361.88 billion. According to the annual draft estimates for FY 2026/27, Shs 361.88 billion has actually been allocated to the Contingencies Fund, which is consistent with the legal framework. I am about to conclude, Madam Speaker. 6.0 Annual budget estimates for FY 2026/2027 6.1 Economic Strategy Uganda’s economy is forecasted to expand by 10.4 per cent by the close of FY 2026/2027, marking a significant growth rate from the estimate of 7.3 per cent at the end of FY 2025/2026. This robust growth outlook will be primarily driven by the commencement of oil production, which is expected to generate a substantial revenue and stimulate productivity through strong inter sectoral linkages. Additionally, the economy will benefit from a sustained investment in the priority sectors outlined in the Tenfold Growth Strategy. The details are provided there, Madam Speaker, I do not have to go into them. This has been in the Budget Framework Paper (BFP) before. The fiscal strategy will continue to be hinged on the fiscal consolidation agenda that will include reforms that will ensure that efforts in domestic revenue mobilisation and resources in the current fiscal framework are reprioritised. Three, issues that affect project execution are addressed. 6.2 Budget Strategy for FY 2026/2027 This is the second budget as reported by the minister in the implementation of National Development Plan (NDP) IV. The goal of NDP IV is higher household incomes, full monetisation of the Ugandan economy and employment of sustainable economic transformation. The goal is supported by the Government to be pursued under the theme of sustainable industrialisation for inclusive growth, employment and wealth creation. The budget strategy for FY 2026/2027 is therefore based on the principles of tenfold growth. That is (ATMS): 1. Agro-industry development; 2. Tourism development; 3. Mineral-based industrial development; 4. Sustainable development of petroleum resources, oil and gas; 5. Development of (petrochemical industries) and knowledge economy. That is mainstreaming ICT and STI into our economy. The budget for FY 2026/2027 will continue to prioritise ATMS and enablers which are outlined and these include security, infrastructure, roads, electricity and railway.

18922 THE SUPPLEMENTARY APPROPRIATION (NO.2) BILL, 2025 6.3 The Resource Envelope Madam Speaker, the resource envelope for the Financial Year 2026/2027 amounts to Shs 84.391.74 trillion, a rise from Shs 72.376.48 trillion as detailed in the Financial Year 2025/2026. The details of the resources are in Table 11. So our new budget in the coming financial year is 84.391.74 trillion. 6.4 How does Government plan to spend this money? Madam Speaker, Shs 84.391.74 trillion will be spent as follows: The expenditure allocations in the Financial Year 2026/27 are projected to increase by about Shs 11,917.68 billion compared to the approved budget of the Financial Year 2025/26, as detailed in Tables 12 and 13. This increase is mainly driven by the additional budget allocations to the following critical expenditure priorities. Madam Speaker, this is where the Shs 84.439.74 trillion will go: (i) Transport and Energy infrastructure, especially meeting government’s counterpart funding commitment for flagship projects such as Kampala- Jinja Expressway, the Standard Gauge Railway, the Meter Gauge Railway, electricity for industrial parks, and water supply, etc. The Government plans to allocate Shs 1.38 trillion. (ii) The Government also plans to allocate Shs 111 billion towards the rehabilitation and maintenance of Kampala City Council Authority (KCCA) roads, the drainage, and clean up. (iii) The Government has allocated Shs 918 billion for the completion of ongoing road projects, national road maintenance, and District, Urban, and Community Access Roads (DUCAR). (iv) The Government has allocated Shs 200 billion to Science, Technology, and Innovation, including Kiira Motors. (v) The Government has allocated Shs 1.16 trillion towards the enhancement of salaries for primary school teachers, secondary school arts teachers, Business, Technical, Vocational Education and Training (BTVET) staff, enhancement of wage for Uganda People’s Defence Forces (UPDF) scientists, and implementation in the welfare of public servants. (vi) The Government has allocated Shs 556.78 billion towards strengthening specialised health facilities, national and regional referral hospitals, and increasing the stock of essential medicines. This was a great development; it was not there before. This is an increment. (vii) The Government has allocated finance for Multi-Sectoral interventions for meeting our commitments to host African Cup of Nations (AFCON) 2027; Shs 496.3 billion. (viii) The Government has allocated additional financing for security of Shs 318.12 billion. (ix) Furthermore, the Government has allocated Shs 267 billion to support strategic private investments under Uganda Development Corporation (UDC). (x) The Government has allocated Shs 205 billion for infrastructure improvement and research capacity enhancement for all public universities. (xi) The Government has allocated another Shs 205 billion for fast-tracking Uganda National Oil Company (UNOC) and Petroleum Authority. (xii) The Government has allocated Shs 145 billion for improving operations of Uganda Airlines. (xiii) And among others, the Government has allocated Shs 100 billion for the restocking of cattle in Northern Uganda. I mentioned the ambulance and others.

18923 THE ELEVENTH PARLIAMENT OF UGANDA FRIDAY, 24 APRIL 2026 In brief, Madam Speaker, the overall budget of the Financial Year 2026/27 reflects a growth- oriented but also constrained expenditure pattern, with significant increases in infrastructure, energy, manufacturing, health, and human capital development, particularly in health and education. There are notable contractions in housing and extractives. Madam Speaker, I refer you to Table 13 for detailed allocations by programme. Allow me to go to page 6.5. The budget priorities for the Financial Year 2026/2027. Madam Speaker, the Government budget priorities for the Financial Year 2026 /27 are as follows, in terms of programmes: (i) Agro-industrialisation with a proposed allocation of Shs 2.264 trillion. This will specifically go to: (a) Agricultural research. (b) Provision of agricultural inputs, including fertilisers. (c) Water for irrigation. (d) Extension services. (e) Agro-processing and value addition. (f) Post-harvest handling and storage facilities. (g) Inspection, surveillance, certification, enforcement of quality standards, and market access. That is where the Uganda National Bureau of Standards (UNBS) comes in. On tourism development (ii) The Government has given a proposed amount of shs 571.52 billion, specifically under tourism: (a) For branding and marketing of Uganda as a tourist and investment destination. (b) For infrastructure development in tourism sites. (c) For construction of refreshment centres and highway sanitation facilities. (d) Improving and enforcing hospitality standards and training. (e) Promoting health tourism by investing in specialised health facilities. (iii) The Government has planned to put money in mineral-based industrial development, including oil and gas, with a proposed allocation of Shs 435.55 billion, particularly for the following: (a) For continued quantification of mineral resources, starting with iron ore, gold, and copper, and strengthening their tracking system. (b) Capitalisation of the Uganda National Mining Company. (c) Establishing mineral markets and buying centres to enable transparent mineral trading. (d) Expediting finalisation of the East African Crude Oil Pipeline. (e) Prioritisation of the construction of the oil refinery. (iv) Science, Technology, Innovation, including ICT and the creative arts industry. The Government has allocated Shs 1.16 trillion. This will go to the following investments: (a) Taking Science Technology Innovation (STI) products to the market, especially Kiira motor vehicles, coffee, dairy, bio- pharma drugs and vaccines, and banana products. (b) Establishing a high-tech city to support the development of technologies and innovations. (c) Additional investment in research and development. (d) Increasing coverage, reliability, and affordability of the internet. (e) Enhancing digitalisation of government services and e-commerce. (f) Promoting business process outsourcing for job creation. (g) Finalising and implementing the Copyright and Neighbouring Rights Act to protect intellectual property and artistic works. Honourable members, the core set budget priorities under the enablers include the following:

18924 THE SUPPLEMENTARY APPROPRIATION (NO.2) BILL, 2025 1. Full monetisation of the Uganda’s economy with a proposed allocation of Shs 2.49 trillion for the various wealth creation programmes including the Parish Development Model (PDM,) which was allocated Shs 1.084 trillion. Export guarantee schemes is Shs 180 billion. Funds for women in business, the GROW project, Shs 75.9 billion; Uganda Development Corporation Shs 454.1 billion; Uganda Development Bank, Shs 442.2 billion; Emyooga Shs 100 billion; Youth programs under the State House Shs 58.5 billion; Microfinance Shs 48.5 billion; and the agricultural credit facility Shs 50 billion. 2. Towards maintaining peace, security and the rule of Law, the Government is proposing an allocation of Shs 10.202 trillion. 3. Towards capital development There is a proposed allocation of Shs 13.521 trillion. And this will specifically go where we are proposing enhancement in a phased manner, starting with 25 per cent. I have already mentioned this; the salaries for arts teachers, primary school teachers, secondary school teachers, and businesses, business technical and vocational education training institutions, with a total financing of Shs 554.4 billion. The Government also proposes to allocate an additional Shs 496.3 billion to finance multi- sectoral interventions towards the preparedness - This is beyond the specific money to AFCON, but there are sectors surrounding AFCON’s success and they are giving an extra Shs 496.3 billion to finance multi-sectoral interventions towards preparedness for AFCON 2027. 4. Infrastructure development, that is roads, railways and energy. There is a total allocation of Shs 10.85 trillion, of which roads, railways, water transport and air transport have been allocated Shs 8.788 trillion, and electricity Shs 2.068 trillion. Priority areas include the SGR, meter-gauge railway, road development, especially express highways, including the Kampala-Jinja Expressway, rehabilitation and maintenance of both tarmac and marram roads, the Bukasa port and ferries, and electricity generation, transmission and distribution lines. 5. Manufacturing, with a proposed allocation of Shs 1.048 trillion. The priority areas include the continued development of infrastructure in priority industrial parks. 6. Environmental and natural resource conservation and protection, there is Shs 514.08 billion for environmental protection and restoration. 7. Administration of justice with a proposed allocation of Shs 651.55 billion. 8. Legislation and oversight with a proposed allocation of Shs 1.226 trillion. Number 6.6 Multi-year commitments. Section 12(3) of the PFMA Cap 171 requires the Honourable Minister of Finance, Planning and Economic Development to present to the House, for the next financial year, a company with a statement for the multi- year commitments to be undertaken by the Government in the subsequent financial year. Furthermore, the statement seeks to require Parliament to authorise Government Ministries, Departments, and Agencies responsible for implementing development projects that span more than one year to enter into multi-year obligations in order to properly implement projects within the available fiscal space. Accordingly, the multi-year commitment statement for the Financial Year 2026/2027 indicates that Uganda’s Public Investment Plan (PIP) for the Financial Year 2026/2027 to Financial Year 2030/2031 contains 357 projects, of which 306 are ongoing, and 51 are new, with a total investment value of Shs 138.18 trillion. THE VALUE ADDED TAX (AMENDMENT) BILL, 2026 [Mr Achia]

I agree, Madam Speaker - (Laughter) - He has now lined up Shs 304 billion for Uganda Development Corporation (UDC) and Atiak Sugar Factory, the main client of UDC, will be one of the beneficiaries. In fact, Atiak has been allocated Shs 100 billion. We have so far invested Shs 668 billion in this controversial Atiak Sugar Factory, mainly through UDC. The Shs 100 billion new allocation will bring the total investment in this company to Shs 768 billion. The proprietor of Atiak Sugar Factory, Ms Amina, has invested Shs 125 billion but holds 60 per cent of the company’s shares. Uganda, which has invested more than Shs 600 billion, has 40 shares. The Auditor-General, in his latest report of December 2025, says that in the last 10 years, the Government has, through UDC, invested Shs 1.3 trillion in 22 companies. Eight of these companies are recording net losses. Another eight companies that UDC loaned Shs 238 billion to have not paid the principal or the interest. UDC is expected to operate with a degree of independence, but it is being financed through project-specific funding. The Government releases funds to UDC that are already earmarked for specific projects, such as Atiak Sugar Factory, leaving UDC with no space to conduct proper investment appraisal, according to the Auditor-General. The return on investment in UDC is 0.09 per cent, according to the AG report. The table on page 11 is a summary of what we have put in Atiak Sugar Factory. The Presidential Initiative on Banana Industrial Development (PIBID) – Shs 70 billion The Presidential Initiative on Banana Industrial Development is another controversial investment by our dear leader. It is headed by Prof. Muranga. They want Shs 70 billion for their operations next financial year. The project has become a bottomless pit. I show the money that has so far gone there. I will leave the table summarising the banana initiative and go to page 12, which is on DEI BioPharma Ltd. We would like to inform Parliament that DEI proprietor, Dr Mathias Magoola, has requested for another bailout worth Shs 1.5 trillion. He was seen in Entebbe attending a Cabinet meeting that discussed the Budget. Like Mr Tugume, he has been asked to wait until an assessment of his controversial factory is done. I would like to thank the Ministry of Finance, Planning and Economic Development for this. Do not be surprised when this request surfaces at some

18937 THE ELEVENTH PARLIAMENT OF UGANDA FRIDAY, 24 APRIL 2026 The hospital-approved staff are 1,273; field, 380. The hospital is operating at 29.8 per cent, and they are urging you to clap. Fort Portal, the regional referral hospital, 1,157. That is the approved staff. The ones recruited so far are 295. They are operating at 26 per cent. They say “do not touch the budget” as if this budget is for one person. I do not have to read the entire list. Just look for your area before you clap and approve. Now I will go to page 37 - I am about to finish. There are delayed health infrastructure projects. These ones are spread in your constituencies because there is no money to complete them, and they are asking you to clap. The table on 38 is showing you these projects. There is no money to complete them. They are white elephants. And Hon. Isiagi and his vice chairperson are saying, “clap”. You can clap - this is Page 38, let us look at the outstanding arrears on Page 39. I do not have to go through them because all this information came from the Committee on Health - you asked us to go and consolidate. However, they did not consolidate because they did not want to touch even a comma. I said “we are in trouble” because the man said do not touch our budget. So, I have helped you to consolidate. It is entirely up to you to pass or not. This is a status and analysis of arrears because all these hospitals are in debt. They cannot pay electricity, pension, salary or water bills, and this information was brought to the committee for consolidation. Maybe, the Hon. Isiagi and his deputy - you should ask them after, to point to a particular page where they consolidated anything. The recommendations are there. Human resources in public health facilities This one has been repeated; forgive me. The delayed health infrastructure on page 43 I do not have to repeat them because they have already captured them. I now want to go - so these ones are repeated. Page 46, I have already referred to it. You can go to Page 48. I have just about two pages to finish. Extractives industry development The Hon. Musasizi was here. He said this is mineral development. In the Budget Framework Paper, Hon. Musasizi proposed a budget of Shs 1.6 trillion for extractive industrial development. Then, when he left, he removed it. What has been brought today for you to pass is Shs 435 billion. Not even what he brought in the Budget Framework Paper. And he says, “The NRM manifesto, as guided by the President, please clap”. Colleagues, you can clap. I am concluding now - Page 48. The UBOS, in their latest report on what they call multi-dimensional poverty, measures not only income but also people’s capacity to pay for hospital care if they fall sick, the number of years they are in school, and access to toilet facilities. This is how they have summarised Uganda - and that is my summary. In Karamoja, people who are suffering from multi-dimensional poverty are 91 per cent. The vice chair comes from there, he says, “clap.” In West Nile, people who are suffering from multi-dimensional poverty, who cannot go to school, have no access to toilet facilities, are 73 per cent. I am waiting to see if anyone from West Nile will clap. This is information from UBOS on multi-dimensional poverty because that is where we are after five years. So, the rest you can read about yourselves - Sebei, multi- dimensional poverty is at 67 per cent – these are people. Busoga is at 59.9 per cent as usual – 59.9 per cent of Basoga are suffering from multi- dimensional poverty. No access to improved toilet facilities or energy for cooking - there are 11 parameters that they measure, not just income. So, as you pass the budget - finally, I want to draw your attention to one table, the last table, which is Annex 1.

18836 THE INCOME TAX (AMENDMENT) BILL, 2026 ii) That implementation of this tax may face considerable challenges as it is difficult to determine when one sells a non-business asset; iii) The committee continues to observe that the traceability of the transactions involving non-business assets such as unregistered land, jewelry, among others, will be difficult, thereby complicating the administration of such a tax; iv) That there is a need to consider the purpose of sale of a non-business asset, as the imposition of the withholding tax may not enable citizens to achieve the intended purpose of sale; and v) The committee observed that a taxpayer who, for different reasons, sells land below the market value will incur a tax obligation, which ordinarily should not exist. The committee recommends that Clause 3 of the Bill be deleted. 4.3 Exemption of Bujagali Hydro Project Clause 4(a)(i) of the Bill seeks to amend 21(1) (A) (b) to extend the exemption of the income of the Bujagali Hydro Power Project by six years from 30th June 2026 to 30th June 2032. The ministry indicated that the exemption in the current law is set to expire on the 30 th of June 2026. The proposed extension is based on the structure of the Bujagali Agreement, where corporate income tax is built into the electricity tariff. If the tax is imposed, the tariff will automatically increase to cover the tax cost. This means that taxing the project would lead to higher electricity prices for consumers rather than generating real net revenue for the Government. In 2025, the Committee on Finance, Planning and Economic Development recommended in its report that the Bujagali Hydropower Project be exempted from income tax for the seven years’ period, as proposed in the Bill, to be consistent with the power purchase agreement, which runs up to 2032. On 14 May 2025, Parliament debated the Income Tax (Amendment) Bill, 2025, and rejected the Committee’s seven-year recommendation, recommending that it instead gives a one-year exemption. I hereby report the observations of the Committee as follows: i) In 2017, the Bujagali generation tariff was at 13 cents USD dollars, which was very high. The Government, in a renegotiation, offered to waive Corporate Income Tax for five years in exchange for a reduction of the generation tariff to 8.3 cents. The Bujagali generation tariff, as of 30 March 2026, was at 6.34, with a dispatch of 84.1 per cent. Colleagues, you can see the reduction because of the exemptions we have been giving; ii) If the amendment is rejected, the income tax, according to the renegotiation power purchase agreement, shall automatically pass through into a tariff as a cost ranging between 1.8 and 2, and will therefore, increase the cost of power; and iii) The proposed amendment seeks to give a waiver to Bujagali up to 2032. This implies that after 2031, the tariff application should be between 4.5 and 4.7 cents per kWh USD, lower than the current tariffs of Isimba and Karuma. The committee therefore recommends that Clause 4(a)(1) of the Bill be adopted. 2. Correction of the Typographical Error Clause 4(a) (11) seeks to correct a typographic error under 2l(L)(ae)(vii) of Cap. The section provides a tax exemption for income derived from specific activities, specifically manufacturers of chemicals for agricultural use, industrial use, textile, glassware, leather products, industrial machinery, electronic equipment, sanitary pads, and diapers. The proposed amendment is to delete the word ‘for’. The committee observes that the proposed amendment is correct and is a clarification intended to correct technical or clerical errors in this section. The committee recommends that this clause be adopted. COMMUNICATION FROM THE CHAIR [Mr Kankunda]

18786 SECTORAL COMMITTEE REPORT Points of dissent 1. The Bill proposes to reduce the import age limit for motor vehicles from fifteen to thirteen years, yet offers no convincing evidence that such a measure will meaningfully improve road safety and deliver environmental benefits. 2. The Bill seeks to increase the environmental tax on imported vehicles in a way that disproportionately burdens ordinary citizens, small businesses, transport operators, and those who depend on the used car market; 3. The Bill will make it more difficult and costly for current owners of older vehicles to repair, maintain, or replace their vehicles, further eroding the livelihoods of those already struggling with economic hardship. 4. The Bill focuses primarily on the second- hand vehicles, while other significant environmental challenges, such as plastic pollution, hazardous chemicals, industrial emissions, and untreated wasteful water, are left largely unaddressed. 5. The Bill risks undermining the repair economy, the spare parts trade, and the long-standing principle of reuse and refurbishment, all of which are essential to a responsible and sustainable environmental policy; 6. The exemption of vehicles recalls, calls into question the claim that the Bill is motivated purely by environmental concerns; and 7. The last one is that the Bill, though presented as an environmental measure, appears in substance to be primarily a revenue-raising instrument. The gist of the minority here Clause 1 is the commencement and application Madam Speaker, this clause sets the commencement date and outlines the transitional provisions of vehicles already in transit. While a short adjustment period is permitted, there is no meaningful protection for citizens who already own older vehicles and depend upon them. Reducing the age limit from 15 to 13 years will inevitably restrict access to affordable vehicles. This restriction will be felt most acutely by teachers, traders, transport operators, and families who rely on the second-hand market to meet their transport needs. For more Ugandans, an imported used vehicle is not a luxury but a necessity. It supports small businesses, enables family mobility, and is vital for day-to-day survival. If policy shifts make these vehicles less accessible, the immediate effect will be to exclude teachers, health workers, market vendors, and small business owners from affordable transport. The resulting burden will ripple across the broader economy, increasing the cost of goods and services and diminishing economic opportunity. Transport is central to the functioning of our society. It underpins development, education, commerce, and access to essential services. When the cost of acquiring and maintaining a vehicle rises, it is the ordinary citizen who suffers first and most, not the state. Clause 2: Amendment of section 15 The clause reduces the import age limit; it is the same thing. Let me go to Schedule 3 now. This clause reduces the new environmental tax on imported vehicles, a move that will inevitably increase the cost of transport and place additional financial strain on ordinary citizens. Although presented as an environmental measure, the principal consequence of the new tax will be higher vehicle prices for buyers, importers, and a certain to pass on the cost to the consumers. Dealing in the markets such as Kisekka and Nakawa will respond by raising prices, making THE TRAFFIC AND ROAD SAFETY (AMENDMENT) BILL, 2026 [Ms Nabukeera]

18788 SECTORAL COMMITTEE REPORT protection, its structure most closely resembles a revenue measure, raising costs for older imports, narrowing consumer choice and increasing government collections. If the Bill’s purpose was genuinely environmental, Parliament would expect a comprehensive and balanced framework. That would include robust emissions testing, strict inspection standards, effective enforcement against plastics and proper regulation of industrial waste and chemicals. Instead, the Bill appears to target only the most convenient issue, leaving the most significant environmental challenges unaddressed. Recommendation Madam Speaker, we are fully supportive of the road safety reform and responsible environmental stewardship. However, we cannot support a measure that is narrowly focused, that places undue burden on ordinary citizens, and lacks the necessary breadth or enforcement to deliver fair and effective outcomes. We, therefore, recommend that the Bill be amended to preserve vehicle affordability, prioritise emissions testing and roadworthiness over arbitrary age restrictions, address pressing concerns such as plastics, hazards, chemicals and industrial waste, or support the repair and spare parts sectors, and ensure any taxes are fair, consistent and transparently linked to the genuine objectives. In conclusion, in its current form, the Bill risks placing undue burdens on a broad section of the Ugandan public in the name of environmental reform while failing to address the conduct of major polluters. It threatens affordability, undermines the culture of repair, and restricts economic mobility. For these reasons, we dissent and respectively urge the House to make substantial amendments before any passage is considered. I thank you.

18610 CONSIDERATION OF THE BUDGET ESTIMATES FOR FY 2026/2027 budget estimates for Financial Year 2025/2026, with the total budget having risen by Shs 91.212 billion, that is a 20 per cent variation. The ministry has verified areas amounting to Shs 402,287,000. Therefore, the total budget is Shs 533.01 billion. The growth was largely driven by significant expansion in the non-wage recurrent budgetary component, majorly attributed to boosting and strengthening functionality of planning and budgeting services, support to UWESO, National Apprenticeship Programme, National Labour Employment and Productivity Reporting Programme and Child Disability Grant. The development budget component, particularly under Programme 12 (Human Capital Development Programme). Notably, Vote function 04 (Labour and Employment Services) recorded the highest increase of 53.0 per cent mainly due to a substantial rise in external financing for the GROW project alongside a sharp increase in funding for labour and industrial relations. However, this upward trend is not uniform across all Vote functions under the Human Capital Development Programme 12. Vote function 02 (Community mobilisation, Culture and Empowerment) experienced a decline of 20.9 per cent, largely attributed to a reduction of non-wage recurrent funding for Culture and Family Affairs. Similarly, function 01 (Administration, Planning and Support Services) registered a reduction of 8.7 per cent reflecting reduced non- wage allocation, despite the modest increase in wage allocation. In contrast, Vote function 03 (Gender and Social Protection) showed steady growth of 9.2 per cent, supported by increased investment in social protection programmes, particularly for the elderly, youth and children. Meanwhile, under programme 19 (Administration of Justice) allocations remained relatively small but stable with a slight 2.0 per cent increase in funding youth and children-related interventions. Madam Speaker, table 7 highlights the cost drivers for the Financial Year 2026/2027 in billions. The list is highlighted. It has 29 items and the total is around Shs 300.3 billion. Allow me to read the list of unfunded and underfunded activities, which are on table nine because there are key areas like Social Assistance for the Elderly (SAGE) that must be handled by the House and the Committee on Budget. 1. Renovation and rehabilitation of ministry institutions (youth and children institutions, including rehabilitation centres for persons with disability, which is unfunded and it requires around Shs 500 billion; 2. 3. There is also an issue of titling of ministry lands across the country, which requires Shs 2 billion, and the justification details are attached in Annex B which is on this list - you will see what those facilities look like currently. There is an audit query that requires that these structures be rehabilitated. 4. Lowering the age of eligibility for SAGE beneficiaries. There is a Cabinet Minute 309 (CT2025) which directed the Ministry of Finance, Planning and Economic Development to adjust the budget up to Shs 252 billion, in addition to Shs 121 billion so that the age eligibility is adjusted to 65. However, that money has not been provided. What we have now is still Shs 121 billion and we have made some proposals in our recommendations, which I will read through. 5. Appointment of the judges and establishment of regional industrial court centres and registries for labour disputes and court settlements. They have provided Shs 4.2 billion, but there is a shortfall of Shs 3.7 billion. For the last two years, the Judiciary has been budgeting for three additional judges, but the Ministry of Gender, Labour and Social

18611 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 16 APRIL 2026 Development has not provided other required funds and we feel that if provided, the three judges for the Industrial Court will be appointed.

The Industrial Court judges operate under the ministry for gender, but get subvention from - the salaries for judges are budgeted by the Judiciary, but all operational costs are handled by the gender ministry.

18612 CONSIDERATION OF THE BUDGET ESTIMATES FOR FY 2026/2027 In November 2018, the Government announced the national roll-out grant to all districts in the country. The criterion was to begin with older persons who are 80 years and above (with a commitment of lowering the age to 65 years within three years) while keeping those who are already on the programme since 2010. The Cabinet sitting of September 2025, under Ref. CT (2025) 132), approved the proposal to lower the eligibility age under SAGE from the current 80 plus to 65 plus years. The committee noted that whereas the Government was proposing lowering the eligibility age from 80 plus to 60 plus years with the numbers of beneficiaries totalling to 1,048,598, the amount required is estimated at Shs 373.36 billion. However, what is provided in the Financial Year 2026/2027 budget is Shs 121.22 billion, therefore, leaving the funding gap of Shs 252.14 billion. As indicated below - the financial implication of achieving the lowering of age eligibility for SAGE - The table currently at 80 plus years with the required amount Shs 1.21 billion has already been provided in the budget. If we go to 65 plus years, we require the Shs 252.14 billion. We are now making a proposal that they adjust to 70 plus years and they will be able to provide the money as we have made in our recommendation, to avail funds worth Shs 71.47 billion to enable implementation of an additional 75 plus years in the Financial Year 2026/2027. The ministries for finance and gender should subsequently provide funds for the implementation of SAGE in age eligibility from 60 plus years in the Financial Years 2027/2028 and 2028/2029 respectively. That is a proposal made by the committee, but the House will take a stand on it. Appointment of Industrial Court judges – we have already talked about it and the committee has made a recommendation. Special enterprise programme – I have already mentioned it. On the national roll-out of empowering informal businesses into formal growth – the Jua-Kali Programme – the amount required was to roll it out to the whole country. However, only Shs 3.3 billion has been provided. We have made a recommendation that the Ministry of Finance, Planning and Economic Development provides an additional Shs 15 billion to enable the national roll-out of empowering informal businesses into formal growth – the Jua-Kali Programme. The Ministry of Finance, Planning and Economic Development should provide the balance of Shs 20.6 billion in the Financial Year 2027/2028. Madam Speaker, I have already mentioned the Medical Arbitration Board. The committee recommends that an additional amount of Shs 6 billion be provided. There is also the Labour Advisory Board. The committee has recommended that an additional Shs 5 billion be provided to enable the advisory board to effectively conduct its mandate. There is also the national programme on the operationalisation of the Minimum Wages Advisory Board and Wages Councils. The Minimum Wage Advisory Board and Wages Council Act, Cap. 229 provides for the establishment of Minimum Wages Advisory Boards and Wages Councils and for the regulation of the remuneration and conditions of employment of employees. During the high-level meeting with leaders of trade unions and employers held on 30 April 2025, His Excellency the President accepted requests from workers and employers organisations (National Organisation of Trade Unions, Central Organisation of Free Trade Unions and Federation of Uganda Employers) that, among other things to be set up, is the tripartite Minimum Wages Advisory Board and the Wages Councils to undertake a comprehensive study of the economy and feasibility of fixing the minimum wage in Uganda. The committee was informed that on 1 May 2025, during the commemoration of

Madam Speaker, it is disheartening to hear from the chairperson that there are judges deployed in the Industrial Courts but who cannot work and yet this category is well paid. It is not cost-effective to have judges who cannot work when we have a lot of cases in other courts.

The Industrial Court judges are recruited specifically - In the Industrial Court, we need these judges, Hon. Faith. What we need to do, as Parliament and Government, is to ensure that we give the minister money for operational costs. That is something very small that should be done. Yes, Olympian.

18635 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 16 APRIL 2026 billion, representing 14.1 per cent of its total proposed budget. Notwithstanding this increment in the Judiciary budget, the case backlog continues to increase, and key activities are underfunded within the budget. The committee notes that the increased travel budget be retained only to the extent that it directly supports judicial work, especially locus in quo visits, estimated at Shs 20.95 billion, out-of-station court sessions, and plea- bargaining proceedings that facilitate case disposal. The committee observes with concern that pre-trial and trial detention remains a systemic challenge within the judicial system, as evidenced by a high proportion of inmates on remand, which is 48.4 per cent. This situation points to a persistent case backlog, yet this matter is not addressed within the budget provisions. In addition, the committee observes that whereas the Judiciary budget has been growing over the years, the same key mandate areas, like the timely disposal of cases, have not attracted substantial funding, hence causing a backlog. Therefore, the committee recommends that the Judiciary budget be realigned and Shs 10 billion be removed from the proposed travel budget of the Judiciary, reducing it to Shs 89.154 billion to Shs 79.154 billion, and the money be reallocated for case backlog reduction and a progress report be shared forthwith. Vote 102: Electoral Commission Following the Presidential directive, the Commission has since January 2023 temporarily relocated its headquarters to the National Housing and Construction Company Limited premises at plot 1-3/5, 7 th Street Industrial Area on a rental basis. The construction of the headquarters at Lubowa, Wakiso, is supposed to be implemented by the National Housing and Construction Corporation, which will provide land, design, construct and furnish the Electoral Commission centre at Lubowa within a period of 18 months. The project is crucial for enhancing operational efficiency, institutional capacity, cost savings in the long term and electoral preparedness for the upcoming electoral activities. Failure to provide the required Shs 62 billion in this Financial Year risks stalling the project and undermining the commission’s preparedness for the upcoming critical electoral milestones. It is the recommendation of the committee that the Government prioritises and allocates Shs 62 billion in this financial year to support the construction of the Electoral Commission headquarters at Lubowa. Uganda Registration Services Bureau (URSB) The URSB plans to construct an archival centre, which is essential for preserving historical records. The centre is expected to streamline information management, enhance accessibility, promote collaboration and ensure the long-term preservation of documents. The project requires Shs 12.5 billion. The committee recommends that the Shs 12.5 billion be provided - honourable colleagues, you remember that these have shifted from rented premises to their home, which they did in record time. Establishment and implementation of the Directorate of Copyright and Neighbouring Rights The URSB plans to establish and implement a Directorate of Copyright and Neighbouring Rights, which aims at protecting intellectual property, fostering creativity and ensuring compliance with national and international copyrights. The Directorate would serve as a cornerstone for a thriving creative economy, promoting fairness, innovation, and sustainable development. URSB requires Shs 2.759 billion to establish and implement the directorate.

Madam Speaker, in accordance with Article 155(4) of the Constitution of the Republic of Uganda, Section 12 of the Public Finance Management Act, 2015 and Rule 149 of the Rules of Procedure of Parliament, the Ministerial Policy Statements for the Financial Year 2026/2027 were presented before Parliament. In light of the above, I now present, for your consideration and adoption, a report of the Committee on Environment and Natural Resources in respect of the policy statement and draft budget estimates for Financial Year 2026/2027, covering the following Votes: Vote 017: Ministry of Energy and Mineral Development; Vote 139: Petroleum Authority of Uganda; Vote 019: Ministry of Water and Environment; and Vote 150: National Environment Management Authority. We also cover the following subventions: i) National Water and Sewerage Corporation; ii) Atomic Energy Council; and iii) Uganda Electricity Credit Capitalisation Company. Madam Speaker, the committee considered the implementation trends, funding gaps, staffing constraints, external financing dependencies and the extent to which planned investments align to the national priorities under the current growth agenda and the relevant National Development Plan IV programmes. Madam Speaker, the votes under the committee’s jurisdiction are strategically important to Uganda’s economic transformation because they directly affect electricity access, industrial power supply, extractives governance, water access, irrigation, sanitation, climate resilience, forestry management, wetland protection and environmental compliance. The committee notes that the policy statements for Financial Year 2026/2027 contain a broad array of projects whose successful implementation would have immediate political and developmental significance in the communities across the country, including the oil host districts in the Albertine Graben, electricity transmission corridors in central and western Uganda, industrial parks in places such as Tororo, Mbale, Nakaseke,

18647 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 16 APRIL 2026 Luwero, Nakasongola as well as water supply schemes in districts such as Terego, Moyo, Lamwo, Zombo, Agago, Pader, Namutumba, Mayuge, Ssembabule, Mityana, Isingiro, Kazo, Kyenjojo, Bukedea, Kanungu, Moroto, Kakumiro and Abim, among others. Colleagues, I can see that some of you are trying to keep pace. I jumped into the executive summary, which is on page, Page 3. However, the committee also notes material implementation constraints, particularly funding gaps, delayed counterpart funding, stalled contractor obligations, weak operation and maintenance financing, land acquisition delays, environmental compliance burdens, and institutional capacity limitations, which, if not addressed, will undermine the political credibility of the budget. Madam Speaker, the context of this report is that sectors and Votes under the committee’s purview are central to the Government’s broader economic growth for various reasons. First, energy powers production and industry, while the extractives are expected to create fiscal space and employment. On the other hand, water supports life and production, while environmental management protects the natural resource base on which the growth ultimately depends. The committee notes that the significance of these Votes is not abstract. In many constituencies, the Government is judged by whether power reaches the households, trading centres and industrial parks; whether piped water reaches institutions, towns and villages; whether boreholes and small schemes remain functional; whether the first oil is obtained and is properly regulated; and whether wetlands, forests and the fragile landscapes are actually protected for the benefit of all. This means that the budget scrutiny in these sectors must go beyond the aggregate figures and focus squarely on whether planned projects are financed, implemented, and sustained in actual locations where Ugandans live and work. Madam Speaker, I will go straight to Item 7.0: Programme budget allocations for Financial Year 2026/2027. Analysis of Vote 017 Vote 017: Ministry of Energy and Mineral Development contributes to the sustainable energy development programme and a sustainable extractives industry development programme of the National Development Plan IV (NDPIV), with policy priorities covering electricity generation, transmission, distribution, clean cooking, petroleum infrastructure, minerals development, geothermal development, and strategic industrial energy investments. Madam Speaker, the committee notes, from the updated submissions of the budget estimates, that the total budget allocation for vote 017 rises from Shs 1.844 billion, in the Financial Year 2025/2026, to Shs 2.282 billion, in Financial Year 2026/2027, representing an increase of Shs 438.11 billion. Table two thereby gives you, colleagues , an overview of how these resources have been allocated. The committee further notes that the ministry’s functional allocation reflects a major emphasis on transmission, distribution, petroleum, and administration-related land acquisition and institutional costs, alongside continued support to generation, minerals, and clean cooking. Colleagues, table 4 gives us an allocation of resources by major functional areas. Madam Speaker, the committee notes that the ministry has identified substantial project outlay for Financial Year 2026/2027, and the medium term, and many of these projects are location-specific and visible. Colleagues, the major planned projects under Vote 017 represent the following, which I believe is a point of critical concern to most of us here. There is a project of Mutundwe-Buloba- Kabulasoke-Masaka and Kabulasoke-Nkonge-

Thank you. Madam Speaker, on the project on Industrial Parks Electrification Phase II, the intended project is to construct substations and power lines to supply power to industrial parks. This will include the Sukulu Hills in Tororo, Mbale Industrial Park, Kapeeka Park in Nakaseke, the Wobulenzi Park in Luwero, and Nakasongola-Kaweweta Defense Industrial Park, amongst others. Under the Kampala Metropolitan Transmission System Improvement Project, we intend to have an upgrade of the Kawaala, Mutundwe, Mukono, and Buloba-related infrastructure. Madam Speaker, the planned area of benefit is Kampala, Wakiso, and Mukono environs. Madam Speaker, there is the ORIO Mini Hydro and Rural Electrification Project. The ministry intends to undertake construction of the mini hydro infrastructure, 288-kilometre distribution network, and 71,081 last-mile connections, particularly intended for areas in Hoima, Nchweera, Igassa, and Nsongya. Forgive my pronunciation due to cultural challenges. On the Kiba Hydropower Project, the ministry is undertaking a feasibility study, the environmental sustainability impact assessment, and access works and stakeholder engagement for this mini project, which is intended to be constructed in Nwoya and Kiryandongo districts. The Oriang Hydropower Project is still the same, and it is intended to be located in Nwoya and Oyam districts. On the Ayago Hydropower Project, preparatory studies are to be undertaken, as well as stakeholder management activities. The same is in Nwoya and Kiryandongo areas. Under the Buyende Nuclear Power Plant site evaluation is going to be undertaken, including meteorological tower installation, seismic and groundwater monitoring, and a resettlement action plan finalisation. This project will be located in Buyanja Subcounty in Buyende District. Madam Speaker, on the geothermal development, there is an intention to undertake deep exploration and drilling, as well as undertake surface studies. This project will be in Kibiro in Hoima, in Panyimur in Pakwach, in Okidi in Amuru, Karungu in Rubanda, Ihimbo in Rukungiri, and Kabuga in Kasese. The electricity access scale-up project

18651 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 16 APRIL 2026 intended for Laropi and Lefori in Moyo, Akoro and Pangila, and Padibe West in Lamwo. The institutional water supply and sanitation project This one is intended to supply the Arocha prison in Apac and the Iceme health centre and surrounding areas in Oyam. The rural growth centre schemes in Ewanga in Madi-Okollo, Edrayo in Terego, Rodo and Nyori in Yumbe. The gravity and piped water schemes are intended for Ambe GFS in Zombo, the Ogili water supply and sanitation scheme in Agago, as well as Pader. The solar-powered schemes for Achukudu solar RGC in Napak. Colleagues, I am sure that the Hon Faith Nakut is now going to give me a bit- Table 12, in the Eastern region. There are rural growth centre piped water projects that are intended for Bulange in Namutumba, Nango in Mayuge, Bubugo- Itanda in Jinja, and Kagumba in Kamuli. Additional rural growth centre schemes, one intended for Oyama RGC in Kaberamaido. The institutional water supply and sanitation schemes in Ivukula prisons and the surrounding areas in Namutumba. The public sanitation facilities are intended for Mulatsi S.S. in Mbale and Lubani SSS in Jinja. The urban and small town water system schemes under the Water and Sanitation Development Facility East. In Manafwa, Bulangira, Bukumi, Kaproron, Kadungulu, Iyolwa, Mukura, Atutur and Mbale Industrial Park. Central region The ministry intends to undertake piped water schemes in Nankondo in Ssembabule, Moone in Nakasongola and Bulera in Mityana. The institutional water and sanitation schemes - Masaka Army Barracks. The solar-powered water schemes in Kyegegwa, Rakai, Namayingo and Buvuma districts. Then the other additional schemes and extensions are intended for Ngoma, Nyanseke, Busaale, Lunya, Kapeeka Industrial Park extension and Kikuube. In Western and Southwestern regions The major towns and cluster water systems. In Nyakashaka and Rubaya in Buhweju and Mbarara, Mabira, Bukiro, and Nyabisirira, Ntungamo Industrial Park, among others. The integrated water management and development schemes Kaliro-Namungalwe and Kyegegwa-Mpara- Ruyonza-Kabagore. This is the learned DAGs area. Isingiro water and sanitation scheme That is for the Isingiro District. Institutional water schemes in Butanda Secondary School in Kabale, Rugazi Health Centre IV in Rubirizi, and Ishekye School of the Handicapped in Sheema. The rural growth schemes Kyampangara and Nyamushojwa in Kazo, Kasaba in Kyenjojo, Rwentuha in Kyegegwa and Buhanda in Mubende. The solar-powered scheme Bikone and Isule-Katebenyangorongo in Kasese; Kagunga Iremera 1, Iremera 2 in Kisoro; and the Rubanda extension scheme.

18654 CONSIDERATION OF THE BUDGET ESTIMATES FOR FY 2026/2027 iv) Jinja Hospital, Shs 43 billion; v) Mulago Hospital, Shs 4.3 billion; vi) Kyambogo University, Shs 3.4 billion; vii) Gulu Hospital, Shs 1.3 billion; viii) Nebbi Hospital, Shs 963 million; ix) Soroti Hospital, Shs 819 million; and x) Entebbe Hospital, Shs 530 Million. I conclude by raising the observations and recommendations Vote 017 i) The committee recommends that the Government provide an additional Shs 300 billion for the Financial Year 26/27 to clear priority inherited rural electrification obligations and restore visible implementation under the last mile service delivery; ii) The Government should reconsider the decision to restructure the Rural Electrification Agency and reinstate a rural electrification agency or any other institution that is dedicated to providing rural electrification in a non-traditional ministry format, especially in light of the low progress since the rationalisation of the previous institution ; (Applause) iii) We should strengthen the anti-vandalism enforcement and accelerate reform in scrap market regulation and protect, and protect critical infrastructure; iv) Government allocates Shs 10 billion to establish a formal mineral market and buying centre; v) Government prioritises the full compensation and relocation of the 414 affected households in Karuma and Awo villages by allocating the outstanding 60 billion; vi) The ministry submits to Parliament a district-by-district implementation matrix of electricity transmission, distribution, and industrial parks electrification projects, showing the financing, the contractor status, the completion timelines, and the expected beneficiaries. This is because for many times, colleagues are asking the Ministry of Energy about electrification projects without clear responses; and vii) The Ministry prioritises delivery in named localities already committed to its prioritised delivery in named localities, especially those mentioned in its policy submissions, like the industrial parks, the transmission corridors, where economic and political expectations are high. Recommendations under the Petroleum Authority of Uganda (PAU) viii) The committee recommends that sustained financing for the real-time monitoring centre, the primary data centre, and the disaster recovery infrastructure, cross- border monitoring, and remaining staff gaps be provided for before Uganda enters into full petroleum production; ix) PAU, through the minister responsible for petroleum, should make quarterly reports to Parliament on first oil readiness, production monitoring capability, national content performance, employment outcomes, and coordination with the Uganda Revenue Authority, the Auditor- General, Uganda National Oil Company, and the Uganda National Environment Authority; and x) Additional budget consideration should be given to unfunded recruitment and technical monitoring tools required for the production of the first oil. Recommendations under Vote 019 i) The Government should increase predictable domestic financing for the operation and maintenance of rural water facilities, small pipe schemes, and rehabilitation of non-functional systems. Colleagues, this will help to remove the burden of repair of boreholes, spring wells, and small water schemes from members of Parliament; and ii) Counterpart funding for strategic towns and other schemes for water production should be protected from disruption during the financial year. Additional resources should be mobilised to narrow the Shs 361 billion financing gap, which threatens universal safe water, climate-resilient, and ecosystem targets.

18656 CONSIDERATION OF THE BUDGET ESTIMATES FOR FY 2026/2027 districts, towns, industrial parks, institutions, and the host communities already identified in the official submissions. The committee, therefore, urges the House to support stronger financing for frontline delivery, closer tracking of implementation by location and sharper accountability for agencies and Votes whose budget commitments affect electricity, water, environment, and petroleum governance across the country. Madam Speaker, I beg to submit. (Applause)

18665 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 16 APRIL 2026 sharp increase reflects the Government’s priority to accelerate industrialisation and job creation through industrial parks and investment promotion. The main drivers of the increase are: i) External financing; an increase of Shs 281.03 billion, from Shs 90.97 billion to Shs 372 billion, primarily to finance the development of industrial parks; and ii) Government of Uganda development; an increase of Shs 44.9 billion, from Shs 217.97 billion to Shs 262.9 billion to support infrastructure development at Mbale Industrial Park and institutional strengthening of the UIA, including systems, governance, and investor facilitation. Vote 141: Uganda Revenue Authority (URA) The proposed budget for URA in Financial Year 2026/2027 is Shs 917.3 billion, an increase of Shs 40.1 billion from Shs 877.2 billion in Financial Year 2025/2026. The entire increase is on the non-wage recurrent budget. The proposed budget comprises Shs 400.2 billion for wage, Shs 452.3 billion for non-wage recurrent, and Shs 64.7 billion for Government of Uganda development. Refer to Annex 2. These resources are geared towards supporting the URA in implementing the successor Domestic Revenue Mobilisation (DRM) Strategy - meaning what is going out because this one is expiring, so we look at the new strategy of the DRM - and improving taxpayer education and compliance management. Vote 143: Uganda Bureau of Statistics The proposed budget for UBOS in FY 2026- 2027 is Shs 148.4 billion, an increase of Shs 14 billion from Shs 134.3 billion in FY 2025- 2026. The increase is driven by Government development, a Shs 23 billion increase despite a reduction in non-wage recurrent of Shs 8.8 billion. The budget comprises Shs 23.2 billion for wage, Shs 83.8 billion for non- wage recurrent, and Shs 41.3 billion for the Government of Uganda development. The additional development resources will support the construction of Statistics House in Entebbe and investment in modern statistical infrastructure, which are expected to improve data production, dissemination and coordination of the National Statistical System. Vote 153: Public Procurement and Disposal of Public Assets (PPDA) The proposed budget for PPDA for the FY 2026-2027 is Shs 33.3 billion, an increase of Shs 3.5 billion from Shs 29.8 billion in the Financial Year 2025-2026. The increase comprises Shs 2 billion on wage and Shs 1.5 billion on non-wage recurrent. The budget comprises Shs 16.5 billion for wage, Shs 15.5 billion for non-wage recurrent and Shs 1.29 billion for the Government of Uganda development. Refer to the attached annex. Vote 163: Uganda Retirement Benefits Regulatory Authority (URBRA) The proposed budget for URBRA in the Financial Year 2026-2027 is Shs 18.7 billion, an increase of Shs 4.4 billion from Shs 14.3 billion in the Financial Year 2025-2026. The increase is mainly on non-wage recurrent expenses by Shs 4.34 billion. The budget comprises Shs 7.8 billion for wage, Shs 10.1 billion for non- wage recurrent, and Shs 0.72 billion for the Government of Uganda development, plus Shs 0.057 billion in arrears. This allocation is intended to strengthen URBRA’s capacity to regulate the retirement benefits scheme, safeguard members’ savings and deepen coverage for the formal and informal sectors. Honourable colleagues, I have covered all the Votes. Suffice it to say that it is, therefore, prudent that we go straight to the observations of the committee Vote by Vote.

18667 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 16 APRIL 2026 c) provides a framework for using a portion of the gaming revenue to finance prevention and rehabilitation programmes. Vote 131: Office of the Auditor-General The committee recommends that: 1. The Office of the Auditor-General be provided with an additional Shs 8.05 billion in the Financial Year 2026-2027, specifically earmarked for strengthening audit coverage in emerging and high-risk areas; 2. The Office of the Auditor-General should be provided with an additional Shs 2.2 billion to conduct an impact assessment and perception survey; and 3. The Finance Ministry, together with OAG, develop a multi-year resource plan that aligns audit coverage with the size, complexity and risk profile of Government operations. Under the Office of the Auditor-General, the committee observed that there are inadequate staff numbers and delayed implementation of manpower plans. Therefore, the committee recommends that the OAG be provided with an addition of Shs 39.99 billion over the medium term to progressively implement its manpower plan, prioritising critical technical and support positions. Recruitment and retention strategies, including competitive remuneration and professional development programs, should be strengthened to attract and retain high-calibre audit professionals. Honourable colleagues, we also noted, as a committee, that there is an insufficient and aging motor vehicle fleet under the OAG. Therefore, the committee recommends that the OAG be provided with Shs 5 billion in the Financial Year 2026-2027 to replace its most critical aging vehicles and ensure reliable transport for field audits. Two, a phased vehicle replacement plan should be agreed upon between the OAG and the finance ministry to avoid future accumulation of obsolete assets and ensure cost-effective fleet management. Under Vote 138: Uganda Investment Authority, the committee recommends as follows: i) That the Government strengthens its project preparation and appraisal framework so that only projects with adequate readiness, land acquired, key approval secured, design completed, and implementation arrangements in place, are submitted for external financing; ii) The Ministry of Finance and Uganda Investment Authority, in collaboration with the National Environment Management Authority (NEMA), Ministry of Works and Transport and other relevant agencies, develop and implement a clear, time- bound road map to resolve all outstanding bottlenecks and fast-track completion of the Namanve project; and iii) Lessons learnt from the Namanve project be formally documented and integrated into the public investment management guidelines to minimise recurrence of similar delays in future industrial park and infrastructure projects. In conclusion, the Committee on Finance, Planning and Economic Development appreciates that the institutions under its jurisdiction are critical for achieving Uganda’s socio-economic transformation agenda, including the Fourth National Development Plan (NDPIV) and the Ten-fold Growth Strategy. However, prolonged capacity constraints and implementation bottlenecks continue to undermine their effectiveness. Therefore, the committee is of the considered view that the budget strategy for the Financial Year 2026/2027 will be realised if the identified challenges are addressed and the above recommendations are implemented. In light of the foregoing, it is the prayer of this committee that this House adopts this report and

18710 CONSIDERATION OF THE BUDGET ESTIMATES FOR FY 2026/2027 Vote 001: Office of the President Recurrent expenditure - Shs 368,225,930,000. Development expenditure - Shs 20,124,000,000. Vote 002: State House Budget item Recurrent expenditure - Shs 453,463,715,000. Development expenditure - Shs 27,772,000,000. Vote 003: Office of the Prime Minister Budget item Recurrent expenditure - Shs 248,940,000,000. Development expenditure - Shs 167,960,000,000. Vote 023: Ministry of KCCA and MA Budget item Recurrent expenditure - Shs 10,457,000,000. Development expenditure - Shs 313,265,000,000. Vote 107: Uganda AIDS Commission Recurrent expenditure, Shs 25,936,453,000. Development expenditure - Shs 557,000,000. Vote 110: Uganda Industrial Research Institute Recurrent expenditure - Shs 22,506,660,000. Development expenditure - Shs 2,893,060,000. Vote 112: Ethics and Integrity Recurrent expenditure – Shs 15,659,957,000. Development expenditure – Shs 64,770,000. Vote 122: Kampala Capital City Authority Recurrent expenditure – Shs 331,950,000,000. Development expenditure - Shs 517,391,000,000. Vote 158: Internal Security Organisation Recurrent expenditure – Shs 297,897,000,000. Development expenditure – Shs 55,241,000,000 Vote 159: External Security Organisation Recurrent expenditure – Shs 126,612,000,000. Development expenditure - Shs 15,702,000,000. Vote 167: Science, Technology and Innovation Recurrent expenditure – She 519,334,000,000. Development expenditure – Shs 76,998,000,000.

18555 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 15 APRIL 2026 ii) Secondly, we learned that emphasis on tangible outcomes and accountability - there is a growing recognition that the continental engagements must move beyond political declarations toward concrete, measurable outcomes, effective monitoring, evaluation, and reporting mechanisms are essential to ensure that commitments made at the Pan-African Parliament and related forums translate into actionable national and regional policies. iii) Value for continental coordination - deliberations on frameworks such as the European Union (EU) Carbon Border Adjustment Mechanism and the AU- EU Summit preparations illustrated the importance of a unified African stance in global negotiations. Coordinated approaches enhance bargaining power, prevent policy fragmentation, and ensure that continental priorities are coherently advanced and at international platforms. iv) Youth inclusion as a driver of innovation and governance. Engagements such as the Youth Day Conference and the P20 Young Parliamentarians Forum reaffirmed the critical role of youth in governance, innovation, and policymaking. Investing in youth leadership, capacity building, and mentorship ensures continuity in democratic governance and brings fresh perspectives to development challenges. v) Harnessing technology and digital transformation was another lesson learned. The discussion on digital innovation and Artificial Intelligence (AI) highlighted the need for African parliaments to embrace technological tools to improve governance, transparency, and service delivery. Strengthening digital literacy, data protection, and AI governance frameworks will position Africa to benefit from the fourth industrial revolution. vi) Integrating justice, equity and reparations into development policy. The African Union’s (AU) 2024 theme, “Justice for Africans and People of African Descent through Reparations”, underscored the need for justice and equity to underpin all development efforts. Legislators must promote frameworks that address historical injustices, social inequalities, and systemic barriers to inclusive development. vii) Holistic and integrated approach to sustainable development - committee discussions revealed that sustainable development cannot be achieved through sectoral silos. Issues such as agriculture, energy, industry, health, and human rights are interconnected and must be addressed through coordinated policy frameworks that align with the AU’s Agenda 2063 and the PAP strategic plan. viii) Multi-stakeholder engagement enhances policy relevance was also covered. The participation of civil society, the academia, AU Institutions, and international partners enriches parliamentary deliberations. Such inclusion engagement ensures that policymaking is evidence- based, participatory, and reflective of diverse stakeholder preparation, thereby increasing legitimacy and impact. ix) Institutional strengthening of the Pan- African Parliament. The sitting reaffirmed PAP’s central role in promoting continental integration, harmonising legislation and advancing citizen-centred governance. Continued institutional capacity building and enhanced coordination with national parliaments will strengthen PAP’s effectiveness in influencing continental policy agendas. x) Continuous learning and exchange of best practices. High-level engagements such as the AI Governance workshop, ASGAP annual meeting, and the Conference of Speakers provided valuable platforms for experience sharing and peer learning. These exchanges encouraged innovation in parliamentary practice, legislative

18570 CONSIDERATION OF THE BUDGET ESTIMATES FOR FY 2026/2027 The committee noted that the Government, in its legislative agenda for the Fourth and Fifth Sessions of the 11 th Parliament, committed to tabling the following Bills for the First Reading: (a) The Trade Remedies Bi11, 2024; (b) The Consumer Protection Bill, 2024; (c) The Cooperative Societies (Amendment) Bill; (d) The Scientific Metrology Bill, 2024; (e) The Start-Up Bill, 2024; (f) The Accreditation (Amendment) Bill; (g) The Scrap Recycling Bill; (h) The Legal Metrology Bill,2024; (i) The Industrial Licensing (Amendment) Bill; (j) The Tobacco Control and Marketing (Amendment) Bill; and (k) The Confederation of the Uganda Chamber of Commerce and Industry Bill, 2024. The committee, however, observed that the legislative agenda was affected by financing in the budgets for the Financial Year 2024/2025 and Financial Year 2025/2026, even after Parliament had recommended that the Ministry for Trade be availed Shs 3 billion to operationalise the Accreditation Services Act and the Sugar Act, in addition to the proposed Bills. The committee was informed that the ministry for trade was engaging the ministry for finance to provide additional funds to fast-track the tabling of the following Bills before Parliament that are at the various stages: (a) The Consumer Protection Bill, 2024 – the ministry for trade has requested for a Certificate of Financial Implications from the ministry for finance. (b) The Trade Remedies, Tobacco Control and Marketing (Amendment) Bill and the Confederation of the Uganda Chamber of Commerce and Industry Bill, 2024 are awaiting approval of their principles by Cabinet. (c) The Scientific Metrology Bi11, 2024 and the Legal Metrology Bill, 2024 – UNBS received the first drafts from the First Parliamentary Counsel for review and stakeholders’ input. Resubmission is planned for May 2026. (d) The Industrial Licensing (Amendment) Bill – the ministry for trade has completed the Regulatory Impact Assessment (RIA) and is finalising the detailed statement of financial implications. (e) The Scrap Recycling Bill – the ministry for trade realised that within the existing laws, scrap could be regulated. So, the ministry developed the trade licensing regulations for scrap. (f) The Accreditation Regulations to the Accreditation Services Act, Cap. 194 were developed and the ministry for trade is consulting with the Attorney-General to confirm whether the same regulations are in line with the Accreditation Services Act. Recommendations of the committee (1) The Government allocates funds to operationalise the Accreditation Services Act, Cap. 194 and the Sugar (Amendment) Act, 2025; and (2) The Government fast-tracks the tabling of the aforementioned proposed Bills before Parliament for processing. Key issues that needed to be addressed The committee noted that the following key policy issues that were to be addressed in the budget of Financial Year 2025/2026 are, to date, still pending: (1) Multiple legislations governing cooperatives. (2) The repeal of the Industrial Licensing Act, Cap. 73 to align with international standards and eliminate outdated provisions, enhance regulatory efficiency, and promote industrial and scientific innovation. (3) The review of the National Trade Policy – the committee was informed by the ministry that this was done and awaits Cabinet approval.

18571 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 15 APRIL 2026 (4) The completion of the Wood and Furniture Industrial Strategy, the National Startup Strategy, the Parish Development Model (PDM) Marketing Strategy, and Regulatory Impact Assessment for Start-Up Bills. The committee recommends that the ministry expeditiously address the aforementioned key policy issues. The committee further recommends that the Government harmonises and consolidates the Microfinance Deposit-Taking Institutions Act, Cap. 58, the Tier Four Microfinance Institutions and Money Lenders Act, Cap. 61, and the Cooperatives Act, Cap. 107 into one law for harmonised regulation of the cooperative sub- sector. The other issue is the need to adequately fund trade negotiations. Madam Speaker, I will go straight to our recommendations. The committee recommends that Government allocates an additional Shs 1.8 billion to the trade ministry to facilitate deployment of trade attachés in all the four key markets of World Trade Organisation, COMESA, China, and India. On stalled projects under the Uganda Warehouse Receipt System, the committee recommends that the ministry for trade expedites the establishment of the Warehouse Receipt Systems Project given the ongoing decline in value of the warehouse facilities. The committee further recommends that the trade ministry should continue collaboration with development partners to secure alternative funding and ensure swift project implementation. On the establishment of a trade house, Madam Speaker, the committee recommends that Shs 15 billion earmarked for construction of the Uganda Development Corporation (UDC) home in the Budget for the Financial Year 2026/2027 be utilised to construct a trade house that will accommodate the ministry for trade, UDC, and all other agencies under the ministry in order to enhance efficiency of limited resources. Two, that the ministry for trade enters a Memorandum of Understanding with UDC in regard to the land that UDC has already secured for construction of the UDC home, to ensure that the two government institutions agree on modalities of establishing a trade house. On delayed implementation of the industrial parks project phase II, the committee recommends that Government, through the Ministry of Finance, Planning and Economic Development (MOFPED), should ensure that counterpart funding obligations are given priority in respective programme ceilings since MOFPED confirms availability of counterpart funding prior to the approval of any loans. The committee further recommends that Government seeks external financing only for projects that are ready for implementation. This will help avoid unnecessary commitment fees from undisbursed loans and ensure funds are used efficiently. On the review of the UDC investment strategy, the committee recommends that UDC reviews its strategy to take into consideration return on investments as one of the key principles in order to free capital for beneficiary companies to also continue benefiting others. Vote 154 - Uganda National Bureau of Standards (UNBS) On the issue of recruitment of additional staff, Madam Speaker, the committee recommends that Government prioritises additional funding to UNBS over the medium term to cater for recruitment of additional staff in a phased manner. On sensitisation of harmful products, the committee recommends that UNBS devises better means of awareness creation and sensitisation of the general public on certified products, in addition to the use of its website.

18572 CONSIDERATION OF THE BUDGET ESTIMATES FOR FY 2026/2027 The committee further recommends that UNBS should quickly inform the general public of any harmful products that may be in circulation. Vote 110 -Uganda Industrial Research Institute (UIRI) On the matter of full operationalisation of Namanve campus, the committee recommends that Government provides Shs 6.2 billion to UIRI for acquisition of additional machinery in the short to medium term. Vote 168 - Uganda Free Zones and Exports Promotions Authority (UFZEPA) On the matter of high litigation expenses, the committee recommends that UFZEPA seeks the services of the Attorney-General in some of its legal matters to reduce on its expenditure on externally outsourced law firms. Votes 601-935 - Local Governments On the need to scale up transitional trade and industry development grants to local governments, the committee reiterates its earlier recommendation that MOFPED sensitise all local governments on the procedures for accessing the transitional development trade and industry grant to enable other qualifying local governments to benefit from the same. The committee further recommends that the budget for the transitional development trade and industry grant be increased to cater for more local governments. Madam Speaker, we will proceed straight to the Ministry of Tourism, Wildlife, and Antiquities Ministerial Policy Statements for the Financial Year 2026/2027. Vote 022 - Ministry of Tourism, Wildlife and Antiquities On the matter of inadequate funding to the tourism development programme, the committee recommends that Government adequately funds the tourism development programme for it to contribute to the Ten-fold Growth Strategy and Double-Digit Growth by the end of the National Development Plan IV (NDPIV). The committee further recommends that the Government should explore various means of funding the Mount Elgon Tourism Infrastructure Development Project. On the matter of funding for review of programme policies and regulatory framework, the committee recommends that Government allocates an additional Shs 2 billion to the ministry for tourism to enable the review of the policy and regulatory framework of the Tourism Development Programme. Uganda Wildlife Authority (UWA) Madam Speaker, regarding the issue of accountability of local governments on UWA revenues shared, the committee recommends that Uganda Wildlife Authority expedites the process of reviewing the regulatory framework for wildlife conservation, which is to also address the revenue sharing programme. On the absence of governing councils or boards in Uganda Wildlife Research Training School and the Hotel Tourism Training College (HTTC), the committee recommends that the Ministry of Education and Sports expedites the process of developing the regulations for operationalising the Technical and Vocational Education and Training (TVET) Act to aid the appointments to the governing councils. The committee further recommends that Government should amend the TVET Act to include professionals in the tourism, hospitality and wildlife research, to take into consideration representation of the college’s interests. Vote 117 - Uganda Tourism Board (UTB) On the need to eliminate the cost of hiring law firms, the committee recommends that Uganda Tourism Board seeks for the services of the Attorney-General in some of its legal matters to reduce on its expenditure on externally outsourced law firms.

18573 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 15 APRIL 2026 Votes 601-935 - Local Governments On the need for a formula for the tourism development grants in local government, the committee observed that local governments are essential in advancing and maintaining cultural and domestic tourism across different regions of Uganda. We recommend that the ministry for tourism, together with the ministry for finance, establish a transparent selection criterion for identifying which local governments should receive tourism development grants during each financial year. The committee recommends that Government, through the ministry for finance, increases the non-wage tourism development grants allocation so that each local government receives more than Shs 10.795 million annually. This increase will support more efficient tourism initiatives and boost local economies and cultural preservation. Madam Speaker, the committee considered the Ministerial Policy Statements and Budget Estimates for the Financial Year 2026/2027 of the Ministry of Trade, Industries and Commerce and the Ministry of Tourism, Wildlife and Antiquities, and recommends that this report be adopted with the following amounts of money allocated to various Votes as indicated in the table below. Madam Speaker, on Vote 015 - Ministry of Trade, Industry and Cooperatives: the recurrent expenditure is Shs 500,700,097,000. The development expenditure is Shs 14,260,000,000. The total for Ministry of Trade, Industry and Cooperatives is Shs 514,960,097,000. On Vote 110 - Uganda Industrial Research Institute: The recurrent expenditure is Shs 22,524,910,000. Development expenditure is Shs 2,893,060,000. The total is Shs 25,417,970,000. On Vote 154 - Uganda National Bureau of Standards: the recurrent expenditure is Shs 82,425,598,000. The development budget is Shs 48,190,000,000 and the total is Shs 130,615,599,000. On Vote 168 - Uganda Free Zones and Exports Promotions Authority: the recurrent is Shs 36,565,570,000. The development budget is Shs 7,360,000,000. The total is Shs 43,925,570,000. On Vote 022 - Ministry of Tourism, Wildlife and Antiquities: the recurrent is Shs 349,292,825,000. The development budget is Shs 71,816,000,000 and the total is Shs 421,108,825,000. On Vote 117 - Uganda Tourism Board: recurrent is Shs 93,180,791,000. The total there is Shs 96,223,971,000. On Vote 607 - Local Governments, Trade and Industry Grants: the total is Shs 8,482,225,000. Finally, on Vote 605 - Local Governments, Tourism Development Grants: the total is Shs 11,400,000,000. Madam Speaker, I beg to report.

18575 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 15 APRIL 2026 people with a medical background and other specialties working for them, or will they just rely on people from NDA on that point so that we do not have double recruitment? We can borrow the speciality from NDA but have some permanent medical staff also in UNBS. On the issue of industrial parks, we have noticed that investment, at the moment, is not widely spread across the country. You find most of the investment along the Kampala- Jinja Road and now stretching up to the Mbale corridor, leaving the rest of the country untapped properly. For example, an area like the West Nile has a population of almost 4.5 million people without any industrial park. We did have an industrial park in Nebbi that is in -

Hon. Isaac, that is in plan. Government is going to make sure that the industrial parks are all over the areas that have been identified. Let us look at priorities. As I said before, let us not look at unfunded priorities. For now, let us look at what we have in the pocket and what we can spend. We will move from one sub region to another. Not so, Prime Minister?

It is just that the industrial park I am talking about was commissioned about three years ago but nothing has been done. I have not heard of a report regarding feasibility studies done. Are we just opening these industrial parks and leaving them there? On the issue of the Uganda Tourism Board, I feel -

18597 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 15 APRIL 2026 ii) Implementation of the national addressing and postcode system, for which the districts in Central Uganda have already been mapped; iii) Refurbishment and equipping of Post Office buildings to establish one-stop centres for the delivery of government services; iv) Strengthen cybersecurity resilience and data protection privacy; v) Extension of free-to-air TV signals to unserved and underserved areas across the country; vi) The ministry is also focusing on establishing a Fourth Industrial Revolution-compliant laboratory, and lastly vii) Acquisition of equipment for the broadcast of the Africa Cup of Nations (AFCON). Table 2 shows the allocation for the ministry. The first two columns show the budget for this current financial year, and then the third column shows the proposal for Financial Year 2026/2027. Overall, the ministry’s allocation is Shs 152.97 billion. This is an increase of Shs 27.83 billion, which means the ministry budget allocation has increased by 22.2 per cent. This exceeds the NDP target, so we should naturally expect this ministry to perform well. This section covers the allocations. Now, the committee observed that the budget allocation to the ministry has increased by Shs 27.83 billion, an increment of 22 per cent from Financial Year 2025/2026 to Financial Year 2026/2027. The increment is on account of an increase in the development budget under the Government of Uganda, domestic, to cater for infrastructure development, with an allocation of Shs 10 billion to the Uganda Institute of Communication Technology for the upgrade of lecture rooms to smart lecture rooms and virtual laboratory rooms, as well as wage provisions. The Government has also provided the ministry with Shs 6 billion, which is prioritised for the rollout of the Government Digital Register to store all the Government application systems. Now, I want to talk about vote-specific issues. Vote 126 - National Information Technology Authority, NITA-U NITA-U, under the RAPEX policy, you are aware that it has been rationalised and is given only a three-year period to complete the ongoing ICT infrastructure extension projects, including the National Backbone Infrastructure and the last mile connectivity, with funding from UDAP-GAV-Net and the Exim Bank of China. NITA-U plays a central role in the digitalisation of Government operations and is equally responsible for maintaining, regulating, and enforcing standards for information technology, both hardware and software. This is achieved through technical advice to the Government on all matters related to information technology, development, utilisation, and deployment. These functions will soon move to the ministry. 6.1.0 Budget performance for the half year The approved NITA-U annual budget for the Financial Year 2025/2026 is Shs 463.575 billion, comprising Shs 81.2 billion from the Government of Uganda and Shs 382.378 billion in external funding. The budget released for the first half of the financial year was Shs 141.012 billion, representing 50.7 per cent of the approved budget. Shs 83.729 billion was spent, translating into a performance of 59.4 per cent as shown in the table below. The low absorption is mainly attributed to lengthy consultative and approval processes by the World Bank for the externally sourced funds. We can look at the table. If you see the table, the release is Shs 141 billion, and the spent is Shs 83.7 billion, which is 50.7 per cent. The committee noted the following achievements from NITA-U.

Madam Speaker, as you recall, during the parliamentary sitting held on 26 March 2026, the issue of sugarcane weighbridges was raised. You directed that we consult further with sugarcane stakeholders, farmers and millers to resolve the pending issues related to weighbridges. Before I present the report, allow me to brief the House on the current status of the sugar industry. A contribution of the sugar industry in Uganda The sugar industry is one of Uganda’s key agro-industrial sectors today, contributing significantly to the Gross Domestic Product (GDP), employment, and exports. i) Size and output: Uganda currently produces about 650,000 to 700,000 metric tonnes of sugar per year, with roughly 450,000 tonnes consumed domestically and 200,000 to 250,000 tonnes exported, making Uganda a net exporter of sugar in the East African Community. ii) Fourteen sugar factories are operational, crushing around eight million tonnes of sugarcane annually, most of which is sourced from outgrowers. iii) The sugar industry contributes 5 per cent of Uganda’s GDP and Shs 500 billion to our tax revenue on an annual basis. iv) Employment and livelihood: The sugar industry directly employs 50,000 people in factories alone, and provides indirect livelihood to several hundreds and thousands more, including outgrowers, transporters, traders and service providers. Categories of sugarcane farmers in Uganda’s sugar industry In Uganda’s sugar sector, farmers supplying sugarcane to millers are broadly categorised as follows; i) Aided or contracted outgrowers These farmers enter into formal or informal agreements with sugar millers under which they receive inputs such as seed cane, fertilisers, and sometimes credit or technical advice. In return, they are expected to supply cane to the contracting millers. ii) Unaided (independent) outgrowers These farmers grow sugarcane with their own resources and are not bound by strong input- support contracts. They can choose which mill to supply, based on the prevailing price and transport conditions, giving them greater market flexibility but often less access to credit and technical support. iii) Nucleus-estate farms These are sugarcane farm plantations owned by millers, as required by the Sugar Act. Madam Speaker, let me now turn to the main subject, which is the weighbridges. Consultations on weighbridges In Uganda’s sugar sector, weighbridges are critical for determining sugarcane volumes, settling payments and preventing theft, but they remain few in number and unevenly distributed. Most are located in key cane-growing districts

18520 THE FORENSIC AND SCIENTIFIC ANALYTICAL SERVICES BILL, 2025 Madam Speaker, I beg your indulgence, in three minutes, to summarise what I have laid. The Budget that I have just laid has been prepared under the theme, “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.” The projected total draft annual Budget for the Financial Year 2026/2027 is Shs 84,294,163,572,986 only. The Budget has been prepared in line with the Fourth National Development Plan (NDP IV), the 10-fold growth strategy, and it will be the first budget to implement the next National Resistance Movement (NRM) Manifesto for the period 2026/2027 to 2030/2031. The budget has, accordingly, prioritised investment in agro-industrialisation, tourism development, mineral-based industrial development, and science, technology, and innovations, including Information and Communications Technology (ICT) and the creative arts industry and the enablers (ATMS). Madam Speaker, under the ATMS, we have categorised the following in summary: Under agro-industrialisation, our focus is on agricultural research, inputs, irrigation, extension, value addition, post-harvest management, storage and enforcing quality standards for market access. On tourism development, we are aiming at promoting Uganda through branding, infrastructure upgrades, sanitation facilities, hospitality standards enforcement and investment in specialised facilities, including health tourism. On mineral-based development, our priorities are quantification, strengthening the Uganda National Mining Company, transparent markets, and projects like the East African Crude Oil Pipeline. On science, technology and innovations (STI), we propose to increase financing to support the commercialisation of STI products like the Kiira Motors Corporation, Dei BioPharma Ltd, coffee and banana; establishing a high-tech city, increasing research and development, affordable and reliable internet, digital government services and e-commerce, the promotion of business processing outsourcing, enforcing of the Copyright and Neighbouring Rights Act to protect intellectual property and artistic works. Madam Speaker, the enablers of these ATMS include: i) Peace, security, and rule of law; ii) Transport infrastructure, including roads, rail, air, and water transport; iii) Electricity; iv) Industrial-park development; and v) Human capital development – here we talk about education, health, water irrigation, environment, and wealth creation funds; that is, Parish Development Model, Uganda Development Bank (UDB), Uganda Development Corporation (UDC), and Emyooga . The key expenditure drivers for the Financial Year 2026/2027 Annual Budget include increased investment in key NDP IV flagship projects such as the standard gauge railway, the meter gauge railway, the Kampala-Jinja Expressway, the construction and maintenance of critical roads, and electricity for industrial parks, among others. The budget has also provided resources to support readiness activities for the Africa Cup of Nations (AFCON) 2027 and enhancement of salaries for primary school teachers and Arts teachers in secondary schools and Business, Technical, Vocational Education and Training (BTVET) institutions. Madam Speaker, we have also proposed the tax policy measures amounting to Shs 1,741 billion to finance the budget. [Mr Musasizi] LAYING OF PAPERS

Thank you. The Votes involved are: i. Vote 15 – Ministry of Trade, Industry and Cooperatives; ii. Vote 110 – Uganda Industrial Research Institute; iii. Vote 154 – Uganda National Bureau of Standards; iv. Vote 168 – Uganda Free Zone and Export Promotions Authority; and v. Votes 601 to 935 – Local Governments. I beg to lay. Thank you.

18299 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 29 JANUARY 2026 Mr Speaker, the 2026/2027 financial year is the second year of implementing the National Development Plan IV (NDP IV). This is the first plan to deliver the 10-fold growth strategy of expanding the size of the economy to a GDP of $500 billion by 2040. It is also the first fiscal year of implementation of the NRM Manifesto 2026–2031, and the Charter of Fiscal Responsibility for financial years 2026/2027 to 2030/2031. Mr Speaker, I wish to inform the House that the Budget Framework Paper has been prepared in line with the NDP IV priorities approved by this House and the NRM Manifesto 2026–2031. Mr Speaker, briefly, I wish to state that the economy is projected to grow between 6.5 and 7 per cent. For the year ended December 2025, economic activity, as per the perceptions of doing business in Uganda, continued to strengthen. Inflation stood at 3.1 per cent, below the policy target of 5 per cent. The exchange rate remained stable and strong against major currencies, such as the US dollar. At the end of November 2025, exports of goods reached $12.79 billion, with Uganda registering a balance of payments surplus of $2.37 billion, from a deficit of $683 million the previous year. Foreign direct investm ent increased to $3.5 billion for the year ended 31 October 2025, while portfolio inflows stood at $1.7 billion for the same year. Tourism earnings reached $1.7 billion, while remittances from Ugandans abroad totaled $1.6 billion, up from $1.1 billion, in the financial year 2020/2021. Mr Speaker, in the next financial year, Uganda’s economy is expected to grow by 10.4 per cent. The GDP is expected to increase to Shs 290.2 trillion, an equivalent of $76.7 billion, from Shs 251.450 trillion, which is equivalent to $68 billion this financial year. This double-digit growth will be supported by the commencement of commercial oil and gas production; strategic government initiatives, including PDM and Emyooga, and infrastructure investments; increasing foreign direct investment, especially in extractive industries; agro-processing; peace and security; and political stability. It will also be supported by continued strong export growth and a stable macroeconomic environment favorable to private-sector growth and profitability. Mr Speaker, the preliminary resource envelope for the Financial Year 2026/2027 amounts to Shs 69.399 trillion. This comprises domestic resources, both tax and non-tax revenue, grants, and borrowing. Mr Speaker, briefly, the key investment priorities for Financial Year 2026–2027 include maintaining peace, security, and rule of law; human capital development including provision of health care, delivery of free universal education, water for human consumption and production, and social protection; monetization of the economy through wealth creation initiatives that contribute to lowering the cost of money like PDM, Emyooga , UDB, and UDC, among others. Other priorities include infrastructure development with a focus on the standard gauge railway, the meter gauge, road maintenance both paved and unpaved, affordable electricity, water, and ICT; strengthening regional integration to guarantee market access; irrigation to stabilise agriculture; industrial parks for manufacturing including agro-processing; eliminating corruption; environmental conservation and the protection of wetlands and forests; and the vertical and horizontal integration of the economy. Mr Speaker, I wish to thank Parliament and the committees that have considered this Budget Framework Paper. We welcome all comments and commit to considering them at the next stage of this process, especially at the issuance of the second budget-call circular. I beg to move, Mr Speaker.

18314 MOTION year he repeats, you think the Government is working. Namagumba-Budadiri-Nalugugu Road Project. The progress of the project was at 4 per cent against a plan of 4.3 per cent. This one is still in its infancy. The North Eastern Road Corridor Asset Management Project. Maybe I do not have to read each and every project that is here, but you need Members to interact with these projects and I am saying in this minority report, as I try to conclude, that we borrow money to do projects for which we pay a lot of money in interest, but we never complete the work. Part of the reason is that there is no counterpart funding. Anyone who is sensible would not be contracting more loans when they do not have counter funding to finish the ones that they have undertaken. You will see there is one here for the private sector - I think I will stop with that one - which is project 22: Investment for Industrial Transformation and Employment Project. The Investment for Industrial Transformation and Employment is a collaborative programme between the Government of Uganda, represented by the Ministry of Finance, Planning and Economic Development, Bank of Uganda, the private sector and development partners. We borrowed $218 million for this project. The idea was that the project would start in 2022 and end in 2027. However, due to delays in approval, the project effectiveness date was 13 November 2023 and the closing date is 31 January 2027. The project targeted 140,000 medium, small and macro enterprises and 120,000 refugees. Of these, at least 40,000 were expected to be women-led macro enterprises. The larger-sized firms will also benefit from the intervention. The overall project performance was poor, at approximately 0.3 per cent and significantly behind schedule. Even when you want to borrow money to help companies that are employing people, you do not utilise it and then you come to Parliament to say: “Can we borrow more?” I do not know, but maybe Hon. Musasizi enjoys the word “borrowing”. If he ever brings a report that does not have the word “borrowing”, he will feel very bad. You have the Electricity Access Scale-Up Project with the same problem. The upgrade of health centres II to III has the same problem; it is behind schedule. Money was borrowed for Uganda Secondary Education Expansion Project, but the project is not making progress. I am saying in this report: do not allow them to borrow until they have completed and made progress on these ones, or else, you will be enlarging the list. You borrow money, you pay. When you look at the report on loans, you will discover that we pay commitment fees on money unutilised, which money we need to do other things that are being listed here -

Thank you very much, Mr Speaker, for the opportunity. The Budget Framework Paper emphasised the issue of employment opportunities and the agro-industry. Mr Speaker, we talked about how our youth have gone to the Middle East to find work. They could have easily been absorbed into the industries established in Uganda. There are regions in Uganda where industries have not been built, yet people have given land for their construction. In West Nile, you will find that people have given land for industrial parks, and these lands have remained there for a long time unutilised. Since the Budget Framework Paper has discussed the issue of agro-industrialisation, I will request that action be taken to ensure industries are located in areas where industrial parks are gazetted so that our youth are employed in those areas. That could be the point at which we provide employment opportunities for our youth. Thank you very much.

18324 MOTION experience of the four years I have been here, honourable minister, you know. I have read and understood it, but we need clarification on education majorly. For example, the coding of primary schools. We have many parishes that do not have primary schools - many of them. Then, on issues of water, you find we have districts with town councils. Personally, Kween District has three town councils without water. They should actually be closed. Then, we have issues of power. This is a very serious issue. We have invested money in industrial skilling centres. We are now thinking about many other ways of creating jobs, like we talk about industrialisation. However, the issue of power - Even in the seed schools where we have invested money, you find we have computers, but we do not have power. We have health centre IIIs without power. For the last three years, we have been talking about power. We have gotten money from here, but Members, there is nothing like power in our areas. Therefore, I want to say - this is where I almost agree with Hon. Ssemujju. For example, when he talked about roads, we have the Kapchorwa- Suam Road. They are saying the road is complete, but there are many components that came with the road that are not complete - the town council roads. In my town council, that is Binyiny, we were given three kilometres of town council roads. They have only done one, and everybody is worried. They even prepared the roads that we had to be tarmacked. Mr Speaker, thank you for giving me the opportunity. I, and even Members, would be happy if such things were clarified. Thank you.

18220 COMMUNICATION FROM THE CHAIR Supporting the textile sector is important, but not through hurried subsidies, opaque transactions, and a sales arrangement that no one can reasonably verify. If the Government wants a national textile strategy, let it table one. This business of buying T-shirts for tailors using taxpayers’ money is not a strategy; it is a risk and Parliament must not approve it blindly. Agriculture arrears and the geography of favour Madam Speaker, tea seedlings arrears have become a permanent feature of supplementary budgets. Apple seedlings, also supplied on credit, have now joined the queue. This is a system where suppliers deliver for years without a budget and expect Parliament to clear arrears at the end of each financial year. It is not sustainable. Worse still, the same districts benefit repeatedly. Some parts of Western Uganda appear almost every year in the ministry of agriculture submissions. Meanwhile, farmers in Northern Uganda have no tea nurseries, no larger scale seedling support programmes, and no agro-industrial facilities. Equity has become rhetoric rather than practical. Electoral Commission and the mystery of new polling stations The Electoral Commission is seeking more than Shs 460 billion for ballot papers, biometric systems and the creation of new polling stations, yet, they have not provided a list of these new polling stations, nor have they justified the expansion. They also did not present technical documentation for the new biometric system. Election management should not be based on trust. Parliament cannot approve technology we have not seen, or polling stations whose locations are unknown. In an election year, such a process raises serious concerns. Ministry of Works and Transport crisis management The ministry presented a long list of stalled, suspended or slow-moving road projects. These include Moroto - I do not have to read them; the Chairperson read them here. These roads have been under construction for many years and their financing needs were known. Contractors have been waiting for payment and there is nothing sudden about these obligations. They are the result of chronic under planning and poor cash flow management. A supplementary budget cannot clean up years of negligence. Uganda Airlines and the cost of flying without a plan The ministry is requesting for more than Shs 400 billion to purchase new aircraft for Uganda Airlines, yet the country has not recovered from the Bombardier deal where we purchased aircrafts that were already being phased out. Global production slowed, spare parts became scarce and maintenance became a nightmare. The airline has been grounded more than once because mechanics could not source essential components. Madam Speaker, we are now being asked to buy more aircrafts before conducting due diligence on viability, maintenance costs, routes, and long-term sustainability. We are being asked to purchase planes before addressing the problems of the ones we already have. A national airline should be a source of pride, but pride must be backed by planning. Parliament should not approve aircraft purchases that may leave us stuck with obsolete models once again. Before Government buys any new aircraft, a thorough due diligence process must be presented, including maintenance projections and route sustainability. Uganda cannot afford another Bombardier disaster. Even basic legal procedures have not been completed. There must be shareholder resolutions regarding capitalisation, and these must be registered with the Registrar of Companies. We have a report of COSASE which this Parliament approved. That is why I did not include it in the report. In the report of COSASE approved here, COSASE recommended that we should be leasing instead of buying, and Parliament approved. Therefore, it cannot be the same Parliament that approved leasing that [Mr Ssemujju] THE SUPPLEMENTARY EXPENDITURE SCHEDULE NO.1

Thank you, Mr Speaker. I rise on a matter of national importance. Objective 3(4) of the National Objective Directives, Principles and State Policy says that institutions and procedures for the resolution of conflicts shall be established and nurtured fairly and peacefully. And whereas this requires institutions of Government and a tripartite arrangement to ensure that at least they handle issues of grievances in the workplaces, to enhance industrial harmony and productivity. Mr Speaker, this has compromised service delivery in a number of areas, and this is at hand. One, we declared industrial action last week by taking the convocation of schools all over the country. All institutions are now at rest. This week, the teachers declared industrial action at the beginning of this third term. This has caused much unrest in our schools. The local government workers have also ended their 90-day notice and are due to declare industrial action. Mr Speaker, this has compromised service delivery and jeopardised our education. My prayers are: one, the government engages in an inter-ministerial dialogue –

Thank you, Mr Speaker. I want to thank my colleague, Hon. Byakatonda, for raising this very important matter of national importance. It is true, as he stated, that there is ongoing industrial action. There is also ongoing negotiation and dialogue to ensure that we come to a common table and agree.

18021 THE E LEVENTH P A R LIAMENT OF UGANDA W E DNESDAY , 17 SEPTEMBER 2025 Article 65 specifically addresses energy conservation; b) The Uganda National Bureau of Standards Act (1983) sets and enforces standards for products and services, including energy efficiency, labelling, and industrial processes; c) The Physical Planning Act (2010). It ensures all developments, including energy infrastructure, follow approved plans, energy-efficient designs, and environmental safeguards; d) The National Climate Change Act (2021). It provides a legal framework for low-carbon development, mainstreaming climate action, and promoting renewable energy. Part three emphasises public participation and section 22 offers incentives for climate actions; and e) The Building Control Regulations (2020). It guides construction practices to ensure safety, sustainability, and energy efficiency in public and private projects. Our proposal These laws and regulations already provide comprehensive mechanisms for energy efficiency, renewable energy promotion, and sustainable resource management. The proposed Bill largely overlaps with existing frameworks, raising questions about its necessity and potential for duplication. 3. The Bill reflects climate change concerns but fails to align with or reference the Climate Change Act, 2021, creating risks for duplication and policy incoherence. The Bill, in its current form, is trying to address matters of climate change when the country already has a Climate Change Act, 2021. The Bill was not brought in good faith because all the provisions could have been ably handled through a Statutory Instrument issued by the minister responsible for the environment as part of the implementation of the Climate Change Act, 2021. For the avoidance of doubt, it remains unclear whether the minister responsible for the environment or the National Environment Management Authority (NEMA) were ever consulted during the processing of the Bill. What is certain, however, is that their input would have been paramount. Given their statutory mandate under the Climate Change Act and the National Environment Act, their contribution should have formed the cornerstone of any serious legislative effort on energy efficiency. The fact that their perspectives are absent from this process casts doubt on the adequacy and completeness of the Bill. Mr Speaker, I invite this honourable House to guide the Executive that efficient utilisation and regulation of biomass use is a function related to the ministry responsible for environment, not energy and mineral development. This can be done through: i) The National Environment Act ii) The Climate Change Act, and iii) Regulation issued by the minister responsible for the environment. Our proposal We reiterate our position that this House should not proceed with the Third Reading of the Bill. Instead, we propose that the House passes a resolution urging the Government, through the minister responsible for the environment, to issue the necessary statutory instruments to extend energy efficiency measures beyond electricity. 4. Uganda already penalises inefficient electricity users The Electricity Tariff, guided by the Grid Code and the Quality of Service Code under the Electricity Regulatory Authority, provides for penalties on industrial users or customers who use power inefficiently. The honourable minister is aware of this.

Thank you, Mr Speaker. Briefly on the policy and principles, the minister lists about three parameters at industrial, commercial and household level. My question is on this policy and principles. There seems to be a narrow target of the application of this law to the following: limited to cooking, transport and in transport, they are targeting only motor vehicles and yet under transport, we have railway, aircrafts, water vessels and they are not provided anywhere. When you come to the issue of other sectors, agriculture is targeted and there is a subheading for it. You do not see anywhere issues to do with manufacturing, oil and gas, mineral

18030 RESOLUTION TO BORROW Therefore, it will be budgeted for in the Ministry of Water and Environment’s mid- term expenditure framework, and the resources will be made available starting Financial Year 2025/2026. The Certificate of Financial Implications has been attached to the detailed brief. The right of way for all the infrastructure was concluded under Phase I of the project in Nakasongola, Kamuli-Kasambira, and Alebtong. The process is still ongoing in Bugadde-Mayuge-Idudi-Busesa, with the district local government’s involvement. The progress of acquiring the right of way for the entire project is estimated at 75 per cent. What are the terms? The loan amount I stated earlier is 183.309 million. The tenure is 14 years with a four-year grace period. The interest rate is six months euribor plus margin, and the commitment fee is 30 per cent of the margin per annum, which is 0.63 per cent. The margin is 2.10 per cent. The sinosure premium is 7 per cent of principal and interest. The agency fee is $20,000 per year, the arrangement fee is 1.4 per cent paid up front, and the default interest is 2 per cent. The six- month Treasury bill issuance to cater for 15 per cent of the contract sum loan amount is 120.395 billion, which is an equivalent of Euro 29.572. The loan period is a six-month Treasury bill to be determined at the time of issuance. However, it stood at 14 per cent per year as of 12 February 2025. The justification, Mr Speaker, is that the project will contribute to the water and sanitation sector target of 85 per cent by 2030 and 100 per cent by 2040. The project will provide additional access to at least 0.74 million people by 2030 and over one million people in the projected design period by 2050. The project will train 150 people in appropriate urban sanitation, masonry, mechanical artisanry, and waste management. Through this project, the sector is targeting rolling out water and sanitation services to the four future cities and the surrounding satellite town councils within selected districts to cover wider and unserved areas, bringing piped water closer to the town populations and progressively reducing the common sight of women and children carrying water on their heads for long distances from unsafe wells. The water supply services will extend to 51 towns, covering 115 parishes. The project will contribute to improved health and productivity by providing safe water and sanitation services to the target population of approximately 1 million people by 2050. The infrastructure also serves industrial areas in the region, including the cassava processing plant in Nakasongola and the proposed industrial park in Kakooge. In addition, the project will include abstract infrastructure for water for irrigation purposes and support designs for extending water for irrigation within the project areas. The envisaged direct impact of the project includes: i) Access to safe, adequate and reliable water supply to town populations, ii) Reduction in the average walking distances to the nearest public water point, and iii) Reduction in the time spent fetching water at congested water points. The water infrastructure designed for the identified cities and surrounding small towns is a direct response to Uganda’s current urbanisation rate of 5.2 per cent. Sanitation interventions in schools, institutions, and other settings, and the accompanying faecal sludge plants with dislodging units, will have a tremendous impact on the existing challenge of emptying toilets and septic tanks in schools and informal settlements. The project will also provide employment opportunities during construction and

Madam Chairperson, we propose that clause 2 be amended - (a) by substituting for the definition of the words “Islamic mortgage refinance business”, the following - “Islamic mortgage refinance business” means mortgage refinance business conducted - (a) in accordance with Sharia principles; or (b) through Islamic window;” (b) By inserting immediately after the definition “mortgage”, the following - “mortgage portfolio” means a collection or grouping of mortgages held by a primary mortgage lender each representing a loan made to a borrower to purchase or refinance a property and includes mortgages over land used for residential, commercial, industrial, or agricultural purposes; (c) In the definition of the words “mortgage refinance business” in paragraph (c), by inserting the words “for the purposes of mortgage refinance business” immediately after the words “financial instruments;” (d) By inserting immediately after the definition of “mortgage refinance business”’ the following - “pre-financing” means the extension of credit by a mortgage refinance institution to a primary mortgage lender against qualifying collateral other than a mortgage portfolio to enable the primary mortgage lender to create mortgage portfolio; (e) By inserting immediately after the definition of “primary mortgage lender” the following - “re-financing” means the extension of credit by a mortgage refinance institution to a primary mortgage lender against a mortgage portfolio already created by the primary mortgage lender. Justification 1. To provide for the operation of a fully- fledged Islamic mortgage refinance business. 2. To provide for a definition of the words “mortgage portfolio” as it is used in the Bill severally but not defined. 3. To specify that bonds, notes and other financial instruments are particularly for purposes of mortgage refinance business. 4. The words “pre-financing” or “refinancing” as used in the definition of mortgage refinance business are technical terms and thus should be defined. I submit.

Thank you, Madam Speaker. If I can move to the issue of the oxygen plants, 24 high-capacity oxygen plants were procured. However, the oxygen plants for Lira, Mbale, Mbarara, and Hoima were procured by the Global Fund, not the Government of Uganda, and they came in after, not at the same time as the government ones. To date, 15 oxygen plants have been installed and are working. Nine are not. This is because each installation requires a transformer, which the Ministry of Energy was not able to provide. Parliament provided for some, and for the others, we are still waiting for the money. The Chairperson of the Committee on Health has pushed for this several times, but it is true that it consumes a lot of power. We have been pushing that the hospitals be put on the industrial line if we are to maintain them. We have yet to have a breakthrough with this request. The issue of the intensive care unit beds. Madam Speaker, you will recall that this funding was provided at the height of the COVID-19 pandemic. At that time, we needed intensive care unit beds and oxygen as urgently as possible for the patients. Therefore, they were procured with the intention of having to install them in existing buildings. Some were installed, some were impossible. To date, Parliament has provided funding to construct ICUs at Jinja, Masaka, Mbale, Arua, Hoima, and Kabale. The rest, not yet. We have been requesting, and it is there in our budget. When you go through it, you will

Madam Speaker, he is too tall, so for people who are short like me, when you take a photo with him, you look like a dwarf. (Laughter) In brief, he should prepare a stool. Thank you so much. Madam Speaker, I have another question from Hon. Veronica Nanyondo, the District Woman MP of Bukomansimbi. Her prayer is that there is an effect on the implementation of the new lower secondary school curriculum on primary school leavers. Can the Government update us on this matter? My response is that at the moment, primary school leavers transition from the knowledge- based curriculum to competence-based curriculum in secondary school, under the revised lower secondary school curriculum. The process of revising the primary school curriculum to make it competence-based has already commenced to harmonise curriculum designs across primary and secondary level education. Once this is complete, the learners will be introduced to competence-based teaching and learning from primary school and progress with it to secondary education. I got another question from Hon. Ronald Balimwezo Nsubuga, MP for Nakawa Division East. He says that Uganda has very many experienced jua kalis, but they have no industrial parks and have continued to operate in a domestic setting, with very high electricity and water domestic tariffs. This is something that has crippled their businesses, yet they compete with investors who operate in Government industrial parks. These investors in Government industrial parks have always been incentivised in the form of tax exemptions, low electricity and water tariffs. This makes it harder for the jua kalis to compete favourably with them in the same market. His prayer is; When is the Government going to set up jua kali industrial parks? My response is that in this principle, for all Ugandan investors - if they all go through the Uganda Investment Authority, industrial parks have been designed with spaces specifically planned for setting up Small and Medium- sized Enterprises (SMEs), which cater for jua kali artisan activities. SME parks of 20 acres have been planned in all the operational industrial parks of Namanve, Soroti, Kasese, SINO-Mbale, and others. The Uganda Investment Authority also acquired the Mbarara SME Park of 12 acres that has been handed back to Gatsby Group, the SME artisans from Mbarara. The Government’s vision is to develop new industrial parks in phases, depending on the availability of resources in Gulu, Nebbi, Arua, Madi-Okollo, Yumbe, Pader, Paidha, Dokolo, Rukungiri, Isingiro, Oyam, Lira, Hoima, Buliisa, Kisoro, Kakumiro, Nakasongola, Luwero, Nakaseke, Mubende, Mityana, Masaka, Kabale, Bushenyi, Tororo, Rakai, Kamuli, Kween, Busia, Soroti, Gomba, Kayunga, Kyegegwa , and Iganga, where land has been mobilised by districts and already offered to Uganda Investment Authority for industrial development to foster innovation and equitable, sustainable industrial growth. Madam Speaker, the major infrastructure, for example, workplaces with shared common user facilities such as production equipment, showrooms for Small Medium Enterprises (SMEs) to use as they sell and grow their businesses, will be constructed within the said industrial parks. 10. Hon. Lucy Akello, the District Woman Member of Parliament for Amuru, raised an issue on the lack of radiologists in the regional referral hospitals like Gulu, Soroti, Mbale and others.

Please lay. Honourable members, the report will be deposited in the Parliamentary Library, for ease of reference. If you want it, please get it from there for you to be able to look at it. II) REPORT OF THE COMMITTEE ON SCIENCE, TECHNOLOGY AND INNOVATION ON FIELD VISITS TO SELECTED INDUSTRIAL VALUE CHAINS IN THE CENTRAL, WESTERN AND EASTERN REGIONS

Madam Speaker, I beg to lay on the Table the report of the Committee on Science, Technology and Innovation on field visits to selected industrial value chains in the central, western and eastern regions of Uganda.

17512 BUDGET SPEECH goods were $9.3 billion for the same period, up from $7.3 billion in March 2024, representing a growth of 26 per cent. The top exports include gold ($3.8 billion); coffee ($1.83 billion), which alone had an annual average growth of 84.9 per cent; industrial products ($626.5 million); cocoa beans ($410.8 million); milk products ($285 million); base metals and products ($230.60 million); sugar ($186.5 million); fish and fish products ($177.7 million); maize ($86.37 million); and other agricultural products like tea, tobacco, cotton, beans, fruits, vegetables, flowers, simsim (sesame), nuts, vanilla and other grains, giving $575.9 million. Madam Speaker, this financial year, for the first time in the history of Uganda, coffee export earnings not only exceeded the $1-billion mark, but are on track to double to $2 billion per year. (Applause) While it took the country more than a century to reach $1 billion earnings per annum from coffee, it has taken just one year to double these earnings. This is an example of the kind of economic leap envisioned under the Ten- fold Growth Strategy. I, therefore, implore Ugandans to grow more coffee and, most importantly, add value to our coffee before we export it for higher earnings. For the year ending March 2025, the Middle East was Uganda’s top export destination, followed by the East African Community, Asia, and the European Union. Uganda recorded large trade surpluses with the Middle East, worth $186.3 million, and the European Union, worth $117.7 million. The main export commodities to these markets were coffee, industrial and mineral products. Madam Speaker, I wish to note that His Excellency, the President’s message and deliberate strategy of increasing the share of manufactured exports in total exports has started producing positive results. New research by the Harvard Economic Growth Lab shows that Uganda has become more complex for its level of income. This means that while earnings from traditional exports like coffee are significantly increasing, their contribution to the total export basket is declining. New products that require more advanced production technology than that expected for our level of income are contributing an increasing share of our total exports. According to the study, in the last 15 years, Uganda added 31 new products to its export basket. Among these are ICT equipment, serums and vaccines, medicines, new pneumatic tires, batteries, gas turbines, electronic integrated circuits, transmission apparatus for radio, telephone and TV, measuring instruments, and instruments for physical and chemical analysis, and light- manufactured products such as steel, processed food, cement, pharmaceuticals, dairy products, ceramics, and cloth. The country also has an opportunity to harness the production of 50 new complex products, which are referred to as strategic bets. Tourism and Foreign Direct Investment Madam Speaker, tourism earnings have grown by 13.1 per cent to $1.52 billion in 12 months to March 2025, from $1.36 billion during the same period in 2024. This impressive growth is attributed to sustainable peace, increased competitiveness of Uganda’s tourism industry, and Government investment in strategic tourism infrastructure, including Uganda Airlines. Remittances from Ugandans living and working abroad were $1.4 billion in 12 months to March 2025, compared to $1.33 billion in the same period in 2024. Uganda has maintained its top ranking as one of the best investment destinations in Africa. Let me repeat this: Madam Speaker, Uganda has maintained its top ranking as one of the best investment destinations in Africa. (Applause) Foreign direct investments were worth $3.4 billion in 12 months to March 2025, compared to $2.99 billion during the same period in 2024. This performance was due to the improved competitiveness of our economy. (Applause)

17513 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 12 JNUE 2025 Fiscal Performance Madam Speaker, revenue collection is projected at Shs 31.9 trillion this financial year ending June 2025, equivalent to about 14.3 per cent of total domestic economic output or GDP. Total expenditure outturn is estimated at Shs 51.53 trillion this financial year, excluding Bank of Uganda securities and domestic financing (debt rollover). The budget deficit is estimated at 7.6 per cent of GDP. The Government plans to collect Shs 37.2 trillion in domestic revenue next Financial Year 2025/2026. This will finance about 60 per cent of the National Budget. The rest of the Budget will be financed through borrowing and grants. The Government has stepped up efforts to mobilise domestic revenue. Going forward, emphasis will be put on the following emisolo : 1. Broadening the tax base through strategic investment in the opportunities in agro- industry, tourism, minerals, including oil and gas, science, technology, and innovation, including ICT, as well as interventions that support wealth creation and the growth of small and medium enterprises; 2. Eliminating corruption at Uganda Revenue Authority (URA) through punishing corrupt officers and taxpayers who collude with URA staff, as well as leveraging digital platforms to minimise human interaction. 3. Enhancing the implementation of Electronic Fiscal Receipting and Invoicing Solution (EFRIS), digital tax stamps, rental tax solution, and regular audits, especially for transfer pricing; 4. Combating smuggling at border points through extended surveillance using advanced technologies like scanners, drones, and tracking systems, with increased patrols in high-risk areas; 5. Rationalising tax exemptions to focus on only those that support industrial policy and introducing sunset clauses. 6. Amending tax laws to close loopholes that cause revenue leakage and providing clarity to encourage voluntary compliance. 7. Strengthening URA, including recruitment and training of tax officers to effectively administer tax collection; and 8. Supporting local governments and revenue- generating public entities to increase revenue collection. Accountability for Financial Year 2024/2025 and Priorities for the Financial Year 2025/2026 Madam Speaker, when I delivered the Budget Speech for the Financial Year 2024/2025, I made several commitments on Government expenditure priorities for the financial year. In February 2025, I presented a detailed Semi-Annual Budget Performance Report for this financial year to Parliament, in line with the law. In this section, I provide the highlights of what the Government has achieved this financial year. With respect to investing in the people of Uganda, the following has been achieved. Let me repeat this. Madam Speaker, with respect to investing in the people of Uganda, the following has been achieved: Health Madam Speaker, during this Financial Year 2024/2025, the following milestones have been achieved in the health sector: 1. The government continued to invest in saving the lives of Ugandans by providing Shs 721 billion for health care supplies, general and essential medicines under the National Medical Stores. This included additional financing of Shs 100 billion for essential medicines, Shs 116.8 billion for ARVs, Shs 2.9 billion for anti-malarial medicines, Shs 17.8 billion for immunisation supplies, Shs 52.3 billion for laboratory supplies, and Shs 2.1 billion for anti-TB drugs; 2. The government continued to improve the healthcare infrastructure and equipment.

It is Shs 3.05 trillion. These funds are going to be passed on to Ugandans in wealth creation through: PDM, Shs 1.059 trillion; Emyooga , Shs 100 billion; UDB, Shs 1 trillion; Uganda Development Corporation, Shs 187.1 billion; and the Agricultural Credit Facility, Shs 50 billion. Others include Generating Growth Opportunities and Productivity for Women Enterprises (GROW), Shs 231.3 billion; Investment for Industrial Transformation and Empowerment (INVITE), Shs 275.1 billion; Presidential Zonal Industrial Hubs and skilling initiatives, Shs 58.5 billion to turn youth into manufacturers; and support to Microfinance, Shs 48.5 billion.

17521 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 12 JNUE 2025 Madam Speaker, I have allocated Shs 430 billion towards direct investment in tourism next financial year. This is in addition to about Shs 2.2 trillion provided for other tourism support investment such as tourism roads, ICT infrastructure in tourism areas, African Cup of Nations (AFCON) infrastructure and security- strengthening in tourism areas. Madam Speaker, the focus next financial year will be on: 1. Branding and marketing of Uganda as a tourism and investment destination. 2. Infrastructure development in tourism sites. 3. Construction of refreshment centres and highway sanitation facilities. 4. Improving and enforcing hospitality standards and training. 5. Promoting health tourism by investment in specialised health facilities. Madam Speaker, the Government has also stepped up investment in missions abroad to promote economic and commercial diplomacy. Every mission is now tasked to bring investors, tourists and open up export markets. Mineral-Based Industrial Development, including Oil and Gas Madam Speaker, the following achievements were registered this financial year: 1. The Government facilitated the establishment of 10 gold refineries, four cement manufacturing plants and one tin processing plant, contributing to mineral processing and refining. 2. In the oil and gas sector, the Tilenga and Kingfisher oil projects are on track for first oil production in 2026. An agreement to construct a 60,000 barrels-per-day oil refinery, which will kick-start the petrochemical industry, was signed between Alpha MBM from UAE and the Uganda National Oil Company (UNOC). Once operations start, the oil and gas sector will contribute between $1 and 2.5 billion annually to the country’s revenues. 3. With regard to local content in the oil and gas industry, more Ugandan companies and individuals have benefited from contracts issued and jobs, respectively. Out of 5,693 Tier One contracts, amounting to a total value of $5.4 billion awarded to date, 4,796 contracts (64 per cent) were Ugandan companies –

Yes, 84 per cent, were to Ugandan companies, amounting to $2.25 billion. Also $33.4 million, equivalent to Shs 121 billion, has been spent on goods and services consumed from the surrounding communities in Bunyoro. More than 14,000 Ugandans have been trained in various technical areas and, so far, about 17,000 direct and 39,567 indirect jobs have been created. 4. Kabalega International Airport is nearly complete, and over 700 kilometres of roads have been constructed in the Albertine Region to support commercial production of oil and gas. 5. The Government is expediting the finalisation of the 1,443-kilometre East African Crude Oil Pipeline (EACOP), which is now 58 per cent complete, with engineering works at 98 per cent completion, and procurement of the major equipment for the pipeline at 83 per cent. 6. Following UNOC’s commencement of the bulk supply of petroleum products in August 2024, the country has experienced relative stability in supply and pricing. This has been realised due to the elimination of the middlemen and speculative tendencies. As a result, Uganda currently saves up to $72.8 million annually on fuel imports. Madam Speaker, I have provided Shs 875.8 billion next financial year for mineral-based industrial development including oil and gas, for: (i) continued quantification of mineral

17526 BUDGET SPEECH ii) Enhance access to electricity through implementation of the $638 million Electricity Access Scale-up Project covering grid expansion, connectivity and clean energy options for one million new electricity connections. Further, the Government will continue investing in priority transmission lines and sub-stations, particularly to the industrial parks, growth centres and other strategic manufacturing facilities like the clinker factory in Moroto, Karamoja; the fertiliser factory in Kampirigisa, Mpigi; Simba Cement Factory in Mbarara, Western Uganda; Dei BioPharma in Matugga, Wakiso District; and; the Coffee Factory in Ntungamo, among others. iii) Commence development of new power generation plants to meet the growing demand. These include new hydropower plants at Ayago and Oriang in Nwoya District, and Kiba in Oyam District, the development of nuclear power in Buyende District, and the rehabilitation of Kiira- Nalubaale Power Plant. Industrial Development and Manufacturing Madam Speaker, with regard to industrial development and manufacturing, the following achievements have been registered: i) The Government has operationalised eight industrial parks, which include Namanve, Luzira, Bweyogerere, Mbale, Soroti, Kasese, Mbarara, and Jinja industrial parks. We have also supported the development of three privately-owned industrial parks, which are Liao Shen Kapeeka in Nakaseke District, MMP in Buikwe District, and Tian Tang in Mukono. ii) To-date, a total of 628 companies/industries have been allocated land within the various industrial parks, 47 per cent of which are in manufacturing. Out of all the companies allocated land, 307 are fully operational, 195 are undertaking construction, and 122 have commenced preparatory activities. The parks have attracted a total capital investment of $4.5 billion and created 181,403 jobs. iii) Madam Speaker, several industrial parks have become centres of innovation, hosting firms that have introduced new technologies and products, such as: a single HIV pill (Quality Chemicals Ltd); GIS transformers (Orion Electricals); plastic-to-fabric recycling (Fei Long Investment Ltd); locally manufactured electric vehicles (Kiira Motors); the first powder-free surgical gloves (East African Medical Vitals); and import substitution products like fridges, transformers, toiletries, textiles, ceramics, televisions, and blankets. iv) The government has supported industrialisation by investing in strategic manufacturing facilities through Uganda Development Corporation with a total investment of Shs 1.2 trillion. Madam Speaker, next financial year, I have provided Shs 308.9 billion to further support infrastructure development in industrial parks, including roads, waste management, drainage, and utilities; and Shs 187 billion for capitalisation of Uganda Development Corporation (UDC). Security, Good Governance, and Rule of Law Madam Speaker, security, good governance and the rule of law are the foundation for socio- economic transformation. Everybody knows that. During this financial year, the following achievements were registered: i) Strengthened and modernised the security infrastructure to protect Ugandans, investors and our visitors from any security threats. We have invested in security apparatus and more sophisticated intelligence network and border control mechanisms. ii) Provided adequate funds to security institutions, including the Military, Police, Prisons, and intelligence agencies for operations, and improving the capacity and welfare of men and women in uniform. iii) Promoted regional and international relations, including playing a strategic role in peace processes in Somalia, South Sudan, the Democratic Republic of Congo (DRC), and Equatorial Guinea;

17529 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 12 JNUE 2025 3. providing and ring-fencing adequate counterpart funding for multi-year projects. (Laughter) I am about to close. FINANCING THE BUDGET FOR THE FY 2025/26 Resource Envelope Madam Speaker, the total resource envelope for the FY 2025/26 amounts to Seventy-two trillion, three hundred and seventy-six billion, four hundred and eighty-one million, five hundred two thousand one hundred three Shillings (72,376,481,502,103/=). This is detailed as follows: 1. Domestic revenue amounting to Shs 37.55 trillion of which Shs 33.94 trillion will be tax revenue, Shs 3.28 trillion non-tax revenue and Shs 328.6 billion Local Government revenue. 2. Domestic borrowing, Shs 11.38 trillion. 3. Domestic refinancing of maturing domestic debt, Shs 10.03 trillion. 4. Grants and external borrowing for general budget financing is Shs 2.08 trillion. 5. External financing for projects is Shs 11.33 trillion of which Shs 2.8 trillion are grants. Expenditure Allocations Madam Speaker, the following resources have been allocated as follows: 1. Wages and salaries – Shs 8.57 trillion. 2. Non-wage recurrent expenditure – Shs 28.33 trillion which also includes operational funds for institutions, financing for all wealth creation funds, financing for science and technology investment, grants for education and health, medicines, maintenance of infrastructure and interest payments among others; 3. Development expenditure – Shs 18.24 trillion. 4. Domestic debt for refinancing – Shs 10.03 trillion. 5. Debt amortisation – Shs 4.98 trillion. 6. Domestic debt repayment to the Bank of Uganda – Shs 493 billion. 7. Domestic arrears – Shs 1.4 trillion. 8. Local Government expenditure from own revenue – Shs 328.6 billion. Madam Speaker, I have attached the details of the resource envelope and expenditure allocations by Vote for FY 2025/26 as Annexes 2 and 3. The Financing Strategy for FY 2025/26 Madam Speaker, below is the financing strategy for the next financial year: 1. Improving tax administration to raise an additional Shs 1.89 trillion. 2. Introduction of new tax measures to increase domestic revenue by Shs 538.6 billion. 3. Rationalising tax exemptions to eliminate inefficient ones that do not support industrial policy. 4. Repurposing resources in the budget for FY 2025/26 from less productive to high impact areas in line with the Ten-fold Growth Strategy. 5. Mobilising more concessional financing from international financing institutions such as the World Bank, the IMF, the African Development Bank, the Islamic Bank, the Islamic Development Bank, BADEA, et cetera. 6. Mobilising development finance from other innovative sources including public-private partnerships, climate finance, private equity, Sukuk bonds, Panda bonds, and diaspora bonds.

17532 BUDGET SPEECH infrastructure (29.3 per cent), electricity infrastructure including power generation plants and transmission lines (27.6 per cent), water for production and consumption (11.5 per cent), agro-industrialisation (5.1 per cent), education and health (5 per cent), housing and urban development (3 per cent), and development of industrial parks (2 per cent). To maintain public debt sustainability, the Government is implementing the following actions: i) Domestic revenue mobilisation to increase revenue collection and reduce borrowing. ii) Mobilising more concessional financing from international financial institutions such as the World Bank, IMF, the African Development Bank, the Islamic Development Bank, BADEA, etc. iii) Implementation of the Okusevinga initiative, where Ugandans will invest in Government securities using mobile money. Now, I want to conclude, Madam Speaker – I know I have tired you. In conclusion, Uganda’s economy has taken off. (Laughter) Can I repeat? Madam Speaker, in conclusion, Uganda’s economy has taken off. When I did this ka- thing, people started – (Laughter) We know what we are doing, man. (Laughter) The economic fundamentals – GDP growth, price stability, currency stability, jobs, export, Foreign Direct Investment (FDI) receipts – are in good shape and highly competitive regionally and globally – Nekano kankaddemu . The economic fundamentals – GDP growth, price stability, current stability, jobs, export, FDI receipts – are in good shape and are highly competitive regionally and globally. We have met the criteria for graduation from the category of least developed countries (LDCs). Poverty and inequality have reduced. Listen to this: Poverty and inequality have reduced significantly. Our deliberate onslaught on the subsistence economy has resulted in cutting the number of Ugandans working for only the stomach – kida kyonka – to just three in every 10 homesteads. With our renewed commitment to fast-track a full monetisation of the economy and redirect resources towards agro-industrialisation, tourism, mineral beneficiation, manufacturing, innovations by our scientists and digital transformation, Uganda is, indeed, unstoppable. Ngambye ntya? Unstoppable! Mwandi badde mu kuba ku ngalo namwe, temumpadde amanyi. (Applause) This Budget, therefore, is for all Ugandans who are ready to create wealth. Fellow countrymen and women, take full advantage of the innumerable opportunities contained in this Budget. To those still in the subsistence economy, the Parish Development Model and other wealth creation funds have been availed to support you to join the money economy in any of the four sectors – commercial agriculture, industry, services or ICT. To the private sector, the 10-fold growth strategy presents many opportunities. Demand for household services and consumables is going to increase exponentially in the next 15 years, on account of rising household incomes. The increase in GDP represents larger demand for intermediate goods and services among businesses. With a larger economy, Government revenue will increase and so will the size of Government contracts to the private sector. To the investors and our partners in development, this Budget guarantees peace, security, easy taxes and a tolerable administration of justice. In Uganda, we protect private property, enforce contracts and repay our debts. To the youth, this Budget offers opportunities to acquire more skills, access finance, innovate and develop new and better products. The Budget also contains huge investments in sports, particularly to upgrade the facilities in preparation for CHAN and AFCON27.

17486 ADDRESS ON THE STATE OF THE NATION The literacy rate has also improved from 43 per cent in 1986 to 80 per cent now. In 1986, more than 90 per cent of the population was trapped in subsistence farming, i.e., working only for food with no surplus to take to the market to get money. There has been a significant reduction in the percentage of households in subsistence agriculture. They are now at 33 per cent – and you hear that at the beginning, they were 90 per cent. These few illustrations show that implementing the mass line programmes is the most effective way of triggering socio-economic transformation. Therefore, in line with the mass line philosophy of the NRM, we must prioritise the following: 1. Peace and security of persons and their property in all parts of the country. 2. Accelerating industrialisation with focus on building factories which use locally available materials as inputs. 3. Export-promotion and import-substitution by boosting the domestic manufacturing capacity. 4. Strengthening the private sector. 5. Increasing market access for our exports, both in the regional markets such as the East African Community, Common Market for Eastern and Southern Africa (COMESA), among others, and international markets. 6. Skilling our youth through the zonal industrial hubs. The youth will continue to acquire skills in tailoring, carpentry, metal fabrication, welding, shoemaking, weaving, hairdressing, knitting, and baking. We shall also add plumbing and motor mechanics. The training is free of charge, and no prior educational qualifications are required, as you all know. 7. Increasing revenue collection by the Uganda Revenue Authority without hurting businesses. 8. Expenditure rationalisation by restructuring the Government. I thank Parliament here. As you heard, the Speaker was listing those Bills which you passed, which enabled this rationalisation to take place. 9. Fighting corruption. 10. Ensuring that the remaining 33 per cent of the homesteads still practised subsistence agriculture – join the money economy. The general security situation in the country is calm. However, the traditional and non- traditional threats to national security continue to manifest in the form of terrorism, negative political activism, general and cross-border crime, as well as health and environmental risks. The national borders are secure, save for the spill-over effects resulting from the conflicts in the eastern Democratic Republic of Congo, South Sudan, Sudan and Somalia. These include an influx of refugees and asylum seekers, illegal immigrants, and the proliferation of small arms and light weapons. The capacity of the national security agencies, i.e., Uganda Police Force, the Internal Security Organisation supported by the army, the Uganda People’s Defence Force (UPDF), has been enhanced in order to combat crimes and guarantee the safety of all Ugandans. You saw how they stopped this young person who blew herself up the other day. She wanted to go where people were, but it was foiled. She was intercepted, and she decided to blow herself up. The security situation in Karamoja Subregion has significantly improved, despite pockets of criminality in the form of livestock thefts and some incursions by the Pokot and Turkana from Kenya. Deployments to stop cattle thefts by some of the Karamojong in the neighbouring

17488 ADDRESS ON THE STATE OF THE NATION of Statistics (UBOS) shows that the share of Ugandans living below the national poverty line has fallen to 16 per cent, from 20 per cent four years ago, surpassing the 2025 national target of 18.5 per cent. With the continued implementation of the Parish Development Model (PDM), we are on track to completely wipe out poverty in the near future. The same UBOS report revealed that income inequality has also declined significantly over the last four years. The Gini Coefficient Formula, a statistical measure used to determine the extent of income inequality within a population has reduced to 38 per cent from 41 per cent in 2020. In the 12 months to March 2025, export receipts from merchandise trade increased by 26 per cent to $ 9.3 billion. The Ugandan Shilling is the most stable currency in the whole of Africa. During the past 12 months, it has appreciated by 6.1 per cent. Inflation is under control. It is projected at 3.6 per cent in the Financial Year 2024/2025, and Uganda has experienced Africa’s second-lowest inflation rate in the past decade. Foreign direct investment inflows are projected at $3.8 billion, while tourism and remittance receipts from Ugandans abroad are projected at $1.5 billion and $1.4 billion, respectively. During the next five years, it is projected that Uganda’s Gross Domestic Product (GDP) is going to more than double to $ 1.58 billion in 2030, in exchange rate terms, and $2.96 billion, in purchasing power parity terms. These achievements are not by accident. They are on account of deliberate and focused government interventions. Cumulatively, over the last 10 years, the Government has injected Shs 8 trillion in strategic wealth creation initiatives, which have boosted economic performance. These initiatives include: 1. Capitalisation of the Uganda Development Bank (Shs 1.45 trillion) to provide affordable capital to manufacturers and small businesses; 2. Parish Development Model (Shs 3.4 trillion) by the end of this financial year for the poor rural families; 3. Emyooga – Shs 553 billion; 4. Youth Livelihood Programme – Shs 207 billion; 5. Small Business Recovery Fund – Shs 100 billion; 6. Agricultural Credit Facility – Shs 495 billion; 7. Youth Venture Capital Fund – Shs 12.5 billion; 8. Uganda Women Entrepreneurship Programme – Shs 168 billion; 9. INVITE Project – Shs 800 billion; 10. The GROW Project – Shs 824 billion; and 11. Uganda Development Corporation – Shs 1.2 trillion, among others. Merchandise goods exports grew by 26 per cent, to $9.3 billion, in the year ending March 2025. The top exports include gold ($3.7 billion), coffee ($1.8 billion), cocoa ($410 million), industrial products such as cement ($335 million), metal products such as steel ($230 million), sugar ($190 million), and fish ($177 million). The export value of milk and milk products increased 10 times, from $28 million in 2015 to $285 million in 2024. The total export earnings of goods and services reached $11.81 billion by March 2025. The prices of consumer goods and services have remained low, averaging 3.4 per cent in the past 12 months to April 2025. This is good for savers and investors to be able to plan their investments and plan with certainty. The low inflation was due to a stable exchange rate, a good crop harvest, and the decreasing global prices of liquid fuels. The prices of diesel, petrol, and kerosene reduced by 4.2 per cent, 2.5 per cent, and 1.7 per cent, respectively, on average, for the year ending April 2025. The increased domestic capacity in sugar production has led to a reduction in the consumer prices of sugar by 10.8 per cent in

17490 ADDRESS ON THE STATE OF THE NATION electronic integrated circuits, transmission operators for radio, telephone, and television sets, measuring instruments for physical and chemical analysis, among others. These new products have contributed to the continued diversification of our exports. Manufacturing is the answer to the challenge of unemployment. Uganda has got the raw materials and the human resources that can support factories specialising in the manufacture of automobiles, electronics, steel, textiles, furniture, food products, pharmaceuticals, aluminium products, etc. Some of the new products, which are manufactured here and are contributing to our export earnings, include: i. An electronics manufacturing plant in Namanve Industrial Park producing 120,000 hair dryers and 60,000 refrigeration parts per year; ii. Pharmaceutical companies producing four million single HIV pills and two million other medicines per year; iii. Dairy farms, which produce 5.3 billion litres of milk and processing plants such as Royal Milk Enterprises, Jesa Farm, Brookside Dairy, Amos Dairies, Lakeside Dairies, GBK Dairy, Pearl Dairy, etcetera, which process about 800 million litres of milk and 365 million tons of cheese per year; iv. Cut flowers worth $120 million being exported to Europe and other countries, per year; v. Two thousand tons of avocados and 4,000 tons of bananas being exported to countries like South Sudan, Kuwait, Thailand, and South Korea, per year; and vi. Electronics, pharmaceuticals, and solar energy products worth $60 million being exported to the regional international markets, per year. Therefore, with the roads and electricity we have now, and with the emphasis on skilled development and the entrepreneurial spirit of Ugandans, the country can increase the share of manufacturing goods in total economic output to the levels of South Korea, Thailand, or Malaysia. In Uganda’s case, this is currently valued at $8 billion. It was only $237 million in 1986. The return on investment in Uganda is high. It averages 14 per cent per year and can be higher in some sectors compared to an average of only 5.2 per cent in Europe in 2022. This is very important for you to understand that when you invest here, you make profits more easily than when you invest in Europe. In Europe, it is 5.2 per cent; here, it is more than 14 per cent. If you invest in Uganda, you get back your initial investment capital in about five to seven years, and the rest is profit, which our laws allow you to repatriate without restrictions. The Government has put in place a strategy to increase the size of the economy to $500 billion by 2040 or earlier. My people talk of 2040, but I want it earlier. This strategy identifies four anchor sectors. These are: 1. Agro-industrialisation; 2. Tourism development; 3. Mineral development, including oil and gas; and 4. Science, Technology, and Innovation (STI), that is; taking advantage of the knowledge economy by prioritising investment in research development, Agriculture production and agro-industrialisation The Government has invested in irrigation to boost agricultural production. This is because the provision of water for irrigation reduces the likelihood of crop failure on account of water scarcity. Although Uganda’s irrigation area has increased from 22,000 hectares to 23,000 hectares, the country, however, has an irrigation potential of three million hectares. We have three million hectares that can be irrigated – I hear we have only irrigated 23,000 hectares of the three million.

17495 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 5 JUNE 2025 1. Establishing the quantities of the remaining mineral reserves; 2. Strengthening the minerals tracking system to improve transparency and meet the international rules of origin; 3. Adequate capitalisation of the Uganda National Mining Company; 4. Establishing the governance framework and the fiscal rule for the mining sector; 5. Expediting the finalisation of the East African Crude Oil Pipeline; 6. Prioritisation of the construction of the oil refinery and refined products pipeline; and 7. Commencing the construction of the Kabalega Industrial Park to attract petrochemical industries, among others. Science, Technology, and Innovation I would like to commend the Ugandan scientists for nurturing our nascent knowledge economy. Our scientists have been active in developing automobiles, vehicles – you show them the vehicles. You show these honourables and all these powerful people, Emotoka zaffe banange ziri ludda wa? Muziteekeko. (Whereupon a video clip was played.)

Temulina motoka zaffe? Mulina bakulu bokka? Abakulu tubamanyi. Ah! Bannange, Kiira mugirabye? Kiira , our visitors – freeze it there – Kabagirabire ddala – laba bano – (Laughter)- bagiteekako ne bagijjako ! Freeze it there. Now, those buses are electric buses manufactured by your children here; from zero to the whole thing. They are called “Kiira”. “Kiira” is our name for the Nile. The Nile – other people call it the Nile but we call it “Kiira”. Even the South Sudanese use the same name. That is why His Excellency, Salva Kiir’s name means Nile. His name means Nile. These people are making the buses, the smaller cars, and all other vehicles. Thank you. You can now show the big people. Obalabye ab’ebitiibwa? So, I want to commend the Ugandan scientists for nurturing our nascent knowledge economy. Our scientists have been active in developing automobiles, vaccines, electronics, therapeutics, diagnostics, and other healthcare tools. The innovations include: 1. The Kiira vehicle plant in Jinja, which has an annual capacity of 2,500 vehicles and an employment potential of 12,000 direct and indirect workers. There are 39 buses operating on our roads from Kiira; and 30 buses are under production. The plant has secured a market in West Africa to supply about 3,700 electric buses; 2. Dei Biopharma Manufacturing Facility in Matugga. Can you show us that one there? That one is a clever Ugandan who is heavily supported by the Government, but he has also attracted some support from other places. The Dei Biopharma Manufacturing Facility in Matugga has filed more than 100 patents in the United States, including a cancer treatment technology based on the gene therapy; a highly potent gene therapy technology for red blood cell generation by the bone marrow, an mRNA vaccine that treats brain degenerative tissue disease, an anti-malaria vaccine, a vaccine for HIV, a one-month insulin shot; a type 1 diabetes vaccine, a universal foot and mouth disease vaccine, and a biological molecule for penicillin. All these patents are there. You can check them with your people. Magoola, I do not know whether – is Magoola here? If he is here, he can stand up and you see him; 3. Developing the vaccines for the Crimean Congo haemorrhagic fever and the Rift Valley virus; 4. Accreditation of the Alfasan Vaccine manufacturing facility to produce anti-tick vaccines for the second phase of clinical trials; 5. Professor Ogwang’s clinical trials of his natural therapeutics. He is also establishing an internationally certified production facility in Soroti Industrial Park;

17496 ADDRESS ON THE STATE OF THE NATION 6. The PCR kit developed by scientists at Makerere University to conduct more than two million tests at 50 per cent of the cost of imported alternatives. This has saved the country $37 million in imports per year; 7. Gulu University developed highly effective rapid test kits for crop diseases – for cassava and sweet potatoes; 8. The engineering development and innovation centres in Rwebiteete, Kiruhura District and Namanve are enhancing capacity for industrial technology, metallurgy, electrical and electronics, civil engineering, automotive technology, agricultural mechanisation, and construction machinery. 9. The Presidential Initiative on the Banana Industrial Development (PIBID) plant in Bushenyi – can you show us that one? Bushenyi banange! If you don’t want to die from a heart attack, you eat our bananas. They have got potassium for your heart muscles. The Presidential Initiative on Banana Industrial Development plant in Bushenyi has significantly increased commercial production capacity to 140 metric tonnes of fresh Matooke – “Matooke” is bananas – per day. The plant has sales orders from the Royal Kingdom of Saudi Arabia, Qatar and Italy. Over the last 17 years, the NRM Government has prioritised infrastructure development, especially the roads, railways and electricity. We now have a solid foundation to support industrial development. All parts of the country are interconnected using tarmac and good murram roads. This means that whatever is produced in the country can easily reach the markets. It also means that the cost and time of moving goods has reduced significantly, facilitating both investments and trade. The stock of tarmac roads is now 6,199 kilometres, compared to only 1,900 kilometres when the NRM took power in 1986. Of these 1,900 kilometres, only 114 kilometres were in fair condition, while the rest, totalling 1,786 kilometres, were in poor condition. The roads to commence construction to tarmac standard next financial year include: 1. 23.6km., Yumbe-Ure Road and bridge. Are my people from Yumbe happy? Awadifo. (Applause) 2. 69.3km., Katine-Ochero Road – apwoyo, apwoyo, apwoyo – and 2.9 kilometres of town roads in Kaberamaido and Kalaki towns. 3. 105km. of Kyenjojo-Kihura-Bwizi-Rwamwanja- Kahunge and Mpara-Bwizi. Mwebale muno. 4. 56.3km., Iganga-Bulopa-Kamuli-Jinja. Mwebale ino . 5. 127km Mbulamuti-Kamuli-Bukungu – at long last. 6. 10km., Jinja City roads. 7. 115km., Kitgum-Kidepo. Apwoyo, apwoyo! (Applause) 8. 88km, Ishasa-Katunguru Road. Mwebale munonga . 9. 65.3km, Luku-Kalangala-Mulabana Road. Do the bassesse have their own language? Bogera Luganda? Kale bagenderawo. 10. 10.67 kilometres on the seven town roads in Kalangala. 11. 72km, Nabumali-Butaleja-Namutumba. 12. 73km, Karenga-Kapedo-Kaabong. 13. 69.6km, Kotido-Kaabong Road. Alakara noi noi . 14. 25km, Bubulo-Bududa Circular Road. Akaguto ako banange. Aba Masaaba. 15. 21km, Mbale-Nkokonjeru Road . 16. 46.4km, Kabwohe-Nyakambu-Bwizibw - era and Nyakambu-Nsiika Road. Abany - abuhweju, at last. The Government is repairing the 78.9km road from Nebbi to Arua and I am also negotiating for more money to tarmac other roads, namely: Kabujogyera-Kitagwenda-Kamwenge Road – a batagwenda bangye mutebwo amastiko; Muhaanga-Rwamuchuuchu-Kisiizi-Rubaare Road with a branch to Nyakisheenyi and another one to Kebisooni – Abahooro, Abakiga tindabasa kubebwa; Lyantonde-Lumbugu- Rakai – abakooki baffe eyomunda eyo;

17498 ADDRESS ON THE STATE OF THE NATION In the past, delayed investment in new electricity generation capacity led to power blackouts – Do you remember? And it affected productivity in the industrial services sector. To stop this from happening again, the Government will commence investment in new hydropower plants at Ayago in Nwoya District, 840 megawatts; Kiba in Oyam District, 400 megawatts; and Oriang in Nwoya, 382 megawatts. In addition, work is ongoing for the 8,400 megawatts nuclear power plant in Buyende District. All these investments, when completed, will bring Uganda’s electricity generation capacity to 12,074 megawatts. However, we are aiming at 52,000 megawatts. Human capital The Government continues – Do not mind the long speech; you are the ones who invited me. (Laughter) - to focus on attaining a good standard of health for Ugandans and those living in Uganda. The prevention strategy remains the most powerful tool for fighting diseases. Therefore, I urge all Ugandans to adopt healthy lifestyles by exercising, maintaining personal hygiene, eating nutritious foods, sleeping under a treated mosquito net, refraining from dangerous practices like smoking, sexual promiscuity, etc. While the Government is investing in improving the health infrastructure across the country, it is the responsibility of every individual to ensure that they live in a clean and safe environment to avoid falling sick. Government has invested in a number of health infrastructure projects. These include infrastructure development for the Uganda Cancer Institute and regional cancer centres, the Uganda Heart Institute, intensive care units and imaging centres for referral hospitals. Construction of new maternity wards and staff houses in the health centres II that are being upgraded to health centres III, is currently ongoing. This has significantly increased the health facilities in all districts across the country. For example, when I visited Yumbe District recently, I found out that Yumbe alone has 26 health centres III. This means that our people, especially children and expectant mothers, no longer have to travel long distances when they get sick or when they are going to give birth. This also supports immunisation, which helps to raise healthy children, and supports the detection of dangerous disease outbreaks before they spread. The Government has supported the establishment of a pharmaceutical industrial park at Namanve that is producing surgical gloves and examination gloves, disposable syringes, human drugs like magnesium sulphate and paracetamol. Next financial year, the Government will support the construction of specialised centres of excellence for cancer and cardiovascular treatment, among others. Education The Government has introduced reforms in the education sector, which are aimed at re-orienting the curriculum towards a competency-based approach. This involves equipping learners with practical skills and competencies that are required in the private sector. This will help to reduce unemployment among school graduates. Government continued to implement the Universal Primary Education programme, reaching 8.8 million learners across 12,433 Government-aided primary schools at a sum of Shs 184 billion. The Government, through the School Facility Grant, constructed 413 new classrooms for primary schools and renovated 181 classrooms. Government procured and distributed 334 sets of mini-laboratory equipment to 334 primary Government schools to enhance practical science learning and foster early scientific curiosity among young learners. A total of 593 teachers were recruited to facilitate operationalisation of the newly grant- aided secondary schools in sub-counties. The Government has successfully completed the construction of an additional 50 seed secondary

17421 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 20 MAY 2025 I have not read anywhere in the proposed amendment that the General Court Martial (GCM) is being given unlimited jurisdiction. Actually, it is being given jurisdiction as set out in the law. When it says that, for example, you will have the authority to try offences under any written law, it is the High Court which has unlimited - but some of these offences are actually tried by Magistrates at Grade One. There are other offences that are tried by Chief Magistrates and others by the High Court. When they say that the High Court has unlimited jurisdiction, it just simply means that the High Court can try even that which the Grade One can try but it does not mean that no one else should try those offences. Being subordinate is equal, the GCM does not have jurisdiction which is unlimited. The jurisdiction of any court in this country is granted by Parliament – (Interjections) - let me finish so you can - jurisdiction is granted by Parliament. Even the jurisdiction of the High Court, ladies and gentlemen, is granted by Parliament under the Judicature Act and the Magistrates’ Courts Act is the one that grants jurisdiction. Remember, some time ago, we had started the process of amending the pecuniary jurisdiction of the Magistrates’ Court. That must come to the Parliament. It is not in the Constitution. The Constitution said there will be these courts but the granting of jurisdiction is supposed to be by Parliament. Yes, it is true, I was asked whether I would trust both courts, and yes, I did say I would trust both. What Hon. Odur forgot to answer is that even in our system, we like to go to the professionals in that space, first, then go to the generalised courts. We have the electricity disputes tribunals, the tax appeals tribunal, the industrial court; all those are specialised. In this case, the matter we are dealing specially is military equipment. The person who is best professed with the mandate to deal with military equipment is the army. We are saying that when you deal with military equipment and stuff of military nature, deal with the army first, then come out to the courts, just like we do in other specialised spaces. You said that the limited circumstances are where the Constitution is not in force. No, the Constitution actually told you to create subordinate courts, so we are doing it in accordance with the Constitution. Fortunately, we have both agreed that this was a matter that even the courts agreed is a constitutional matter. You also pointed out something where the courts of law have no capacity to try offences, for example, the shortage of judicial officers. I will leave that to you, Members of Parliament, because I am sure every time we come here, you talk about the backlog and the fact that we need more judicial officers. That is a matter that you have to have at the back of your mind, whether we should bring more matters to the judiciary. The issue here that we are dealing with- this law does not deal with providing jurisdiction of the GCM over all Ugandans. Therefore, it would not be necessary for you to get training and recruited into the army because the army is not asking for jurisdiction over all Ugandans. It is saying that only those who illegally possess killing instruments, which are ordinarily- and the issue here is ordinarily the preserve- So, suppose you find yourself in a situation where you have an AK-47 gun, without a license. In that case, the Ministry of Defence and Veteran Affairs says that they may be more specialised in dealing with these people who have special skills in acquiring arms illegally. The second one is where you work with the soldiers to commit an offence. If a civilian killed someone with a hammer, a panga , or boxed someone to death, you do not go to the court martial. They take you to the civilian courts. However, if you used a gun or a bomb, then that is when - so it is not that the law is saying

On the qualification of the other two members, Hon. Odur, we thought about that, and – it is not new in our place here. I am sure you are familiar with the industrial court. The industrial court has one lawyer and two other people who are experts on labour issues. These are experts in army affairs, so we are not picking people from the street. However, here, the law has told them that the only a person – and the amendment has clarified it. The decision on matters of law will only be made by the chairperson who is a legal expert, but the decision on matters of fact can be done by the soldiers and I think it is perfectly fine.

Madam Chairperson, with due respect to the submission of the learned Attorney-General, you are talking here about criminal law, criminal trial – the highest standard is needed before court. In the industrial court, tax appeals tribunal – these are civil matters, and the burden of proof is on the balance of probability. However, here you are talking about criminal –

17321 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 15 MAY 2025 3) In regard to alignment of programme allocations, the proposed annual budget programme allocations are consistent with the NDP IV, as indicated in the programme shares against the total budget, respectively - That is in table 5 for the details. 4) In regard to consistency, the high-impact projects of NDP IV, the proposed annual budget for the Financial Year 2025/2026 is consistent with the NDP IV. I beg honourable colleagues to get the details in Annex 3 of this report. Generally, this budget has adopted the implementation of NDP IV and this is a very good observation. Committee recommendations: i) In order to accelerate economic growth, Government should continue to sustain investments in strategic initiatives and strengthen the operationalisation of the Parish Development Model (PDM), Emyooga , industrial hubs, among others in order to stimulate private expansion, job creation and household incomes. ii) We urge the Government to maintain fiscal prudence, which should remain a priority, with the policies aimed at containing the debt-to-GDP ratio below the 50 per cent CFR target and in present value terms. This should gradually reduce the fiscal deficit to below 3 per cent so that it is consistent with the regional and domestic fiscal policy frameworks of the target of 3 per cent. iii) Government should continue the acceleration of domestic revenue mobilisation by broadening the tax base, particularly in the digital economy through stricter enforcement and compliance mechanisms, such as the Electronic Fiscal Receipting and Invoicing System (EFRIS) and the Digital Tax Stamps (DTS). 2.5. Gender and Equity Responsiveness Madam Speaker, the committee observes that there has been a tremendous improvement in gender and equity compliance at 68.5 per cent compared to the Financial Year 2024/2025 where the score was below 67 per cent. 2.6. On the Contingency Fund, the committee observed that this year in the annual appropriation budget, the figure provided is Shs 169.0 billion, which is less than the expected amount, reflecting a deficit of Shs 2.1 billion. I will go to page 13 on the semi-annual budget performance. Implementation of the budget strategy - the details are outlined on page 13 and honourable colleagues can read that. Page 14. Overview of the revenue performance 3.2.1. Total tax revenue of Shs 14,335.88 billion was collected in the first half of the Financial Year 2024/2025 against a target of Shs 13,993.16 billion for the period, resulting in a surplus of Shs 342.71 billion. This performance was mainly on account of improved tax administration as well as higher than projected profitability of some firms in the first half of the financial year. 3.2.2. Grants The total grants disbursed during the first half of the Financial Year 2024 amounted to Shs 828.31 billion. This was against a projection of Shs 1,620.49 billion, implying a performance of about 51.1 per cent. 3.3. Overall overview of the expenditure Table 6 below shows the release and expenditure performance by wage, non-wage and development expenditure for the different categories for development and expenditure: Aggregate expenditure performance. At an aggregate level, Shs 18,295.2 trillion of the budget, excluding interest payment, was released by the end of December 2024. This equates to 48.7 per cent of the approved budget. The aggregate absorption was very high, at 78.3 per cent. The details on the wage releases performed at Shs 4 trillion of the approved budget. Of this, Shs 3.861 trillion was spent, which represents an absorption of 96.5 per cent.

17326 MOTION FOR APPROVAL OF THE PROPOSED ANNUAL BUDGET, 2025/2026 - The Government should integrate the results of the census into the PDMIS data collection and registration model in order to facilitate profiling and identification of subsistence households; and - The Government should prioritise funds to ensure full implementation of the PDMIS and the integration of the WENDI platform to all participating banks. Honourable colleagues, we now go to the last part of this budget report. 4.0 Annual budget estimates for the Financial Year 2025/2026 4.1 The Budget Strategy for the Financial Year 2025/2026 This is the first budget in the implementation of the National Development Plan (NDP) IV. The goal of the NDP IV is, “Higher household incomes, full monetisation of the economy, and employment for sustainable socio-economic transformation.” The goal will be pursued under the theme: “Sustainable Industrialisation for Inclusive Growth, Employment and Wealth Creation.” To concretise the gains so far achieved during the Third National Development Plan (NDP III) and in order to propel the economy to higher levels of economic transformation towards double-digit growth, the theme for the coming financial year’s budget will be maintained as: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation, and Market Access.” The overall objective of the budget for the Financial Year 2025/2026 strategy is to strengthen economic growth drivers that underpin the restoration of the economy back to the medium-term growth path and directly contribute to the expansion of GDP ten-fold from the current $553 billion to $500 billion by 2040 and double to $100 billion by 20 - I do not know that one. I think I have the wrong number. The budget strategy for the next financial year is therefore based on the principles of the ten- fold growth strategy and the gains, the lessons learned and opportunities from NDP III, as well as NDP IV’s new strategic direction. This demonstrates continuity of the socio- economic transformation agenda. This strategy underscores employment, wealth creation, and household income by prioritising key enablers for accelerated growth. The strategy, Madam Speaker, is based on five strategic areas or programmes, in brief called (ATMS) namely: i. Agro-Industry Development; ii. Tourism Development; iii. Mineral-based Industrial Development; iv. Sustainable Development of petroleum resources, that is, oil and gas; v. The development of the petrochemical industries and the Knowledge Economy, that is mainstreaming ICT, Digital Economy, and Science, Technology, and Innovation in our economy. 4.2 Actual Expenditure Lines The resource envelope for the next financial year, as presented by the Minister of Finance, Planning and Economic Development to the committee and to this House amounts to Shs 72.376 trillion, a rise from Shs 72.137 trillion in the Financial Year 2024/2025 and the 72.376 trillion is broken down as follows: i. Domestic revenue, that is tax and non-tax revenue, is expected to be Shs 37.2272 trillion; ii. Budget support, that is grants and loans, is Shs 2.0843 trillion; iii. Domestic financing, that is domestic borrowing. We are going to borrow Shs 11.3813 trillion; iv. Domestic debt refinancing, that is rollover -

17329 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 15 MAY 2025 export sectors, through the Investment for Industrial Transformation and Employment (INVITE) Programme; 2. Shs 90.97 billion for infrastructure development of industrial parks; 3. Shs 47.8 billion for capitalisation of the agricultural credit facilities to support farmers, but mainly agro-processors that focus on value addition; 4. Shs 414.74 billion for capitalisation of Uganda Development Bank in line with the annual line of credit. This will support the entire agricultural ecosystem, the private sector players, to increase stock and quality of tourism facilities, financing of the local production of essential goods as a precursor to achieving import substitution, among others; and 5. Shs 210.17 billion has been allocated towards the Resource Enhancement and Accountability Programme (REAP) with the objective of increasing resource mobilisation, improving planning and public investment management, and strengthening accountability for quality, effective and efficient service delivery. Commercialising agriculture Madam Speaker, these are the priorities proposed: a) Breeding, production, multiplication, and availing animal seed and poultry to farmers across the country through National Animal Genetic Resources Centre and Data Bank (NAGRIC&DB) - Shs 96.05 billion; b) Animal feed production on government ranches and farms (NAGRIC&DB) – Shs 25.5 billion. Those people who steal our cows from NAGRIC&DB should stop; c) Development of anti-tick vaccine, STI - Shs 5 billion; d) Research products and services suited for food, feed, market and industry National Agricultural Research Organisation (NARO) – Shs 24.1 billion; e) Improving access and use of agricultural equipment and mechanisation, through the use of labour-saving technologies under the Ministry for Agriculture – Shs 56.14 billion; f) The National Oil Palm Project under the Ministry for Agriculture - Shs 70.72 billion; g) Agriculture Value Chain Development, again under the Ministry for Agriculture – Shs 73.25 billion; h) Enhancing Agricultural Production, Quality and Standards for Market Access Project, Ministry for Agriculture - Shs 111.35 billion; i) The National Oil Seed Project under the Ministry for Agriculture - Shs 83.46 billion; j) Uganda Climate Smart Agriculture Transformation Project is provided with Shs 76.32 billion; and k) Coffee seedlings to Northern Uganda - Shs 60 billion. This is the first time; Northern Uganda has to embrace coffee production and enhance the economy of Uganda. That is a great thing. We have paid the debt for coffee seeds, and now we are going to get to the seedlings. Transformative transport infrastructure development 1. The construction of the Standard Gauge Railway, Shs 2,175.29 billion; 2. The construction, upgrade and rehabilitation of national roads and bridges - Shs 2,201.34 billion. Some of these include: a) Hoima-Wanseko Road - Shs 185.47 billion; b) Construction of 66 selected bridges - Shs 30.61 billion. The list of bridges is in the annex;

NDPIII as well as NDPw strategic direction. Ttris demonstrates continuity of the socio-economic transformation stratery. Ttris strategr underscores emplo5rment, wealtlr creation, and higher household incomes by priorittdng key enablers for accelerated growth. fire strategr is based on five strategic anchor areas/progranrmes (ATUS) namely: 1) Agro-Industry Dwelopment; 2) Tourism Development; 3) Mineral-based Industrial Development; 4) Sustainable development of petnoleum resources: Oil and Gas 5) Development (petrochemical industries) and Knowledge Economy Mainstreaming (ICT, DT, STI). 4.2 Overlsw of tte Budget -F1fZUlE.l(J[5 Rt. Hon Spealrer and Members, the resouree envelop for the nent financial year amounts to UGX. 72.376 trllllon, a rise from UGX. 72.137 trlllion in F"f 2024125, broken down as follows: i. Domestic Revenues (Iax/Non-Tax Rwenue): ii. Budget Support (Grants and Loans) iii. Domestic Financing (Domestic Borrowing|: iv. Domestic Debt Refinancing (Rollover) v. Project Support (Grants and loans): UShs. UShs. UShs. UShs. UShs. 37,227.2 billion 2,084.3 billion 11,381.3 billion 1O,O27.8 billion L1,327.1 billion GRAITD T|(yrAL UShs.7!l, 376.5 blllloa Ftom the above nesource envelop, the following commitments take a flrst expenditure call: Project Support (Dlternat Financing) Amortization Domestic Refinancing Interest Pa5rments Appropriation in Aid (I,Gl) Domestic Arrears i. ii. iii. iv. v. vi. vii. 4E: UShs. LL,327.1 billion UShs. 4,985.8 billion UShs. LO,O27.8 billion UShs. LL,332.7 billion UShs. 3L9.4 billion UShs. 1,400.0 billion UShs 493.0 billion Debt Pa5rment (BoU) ( # W 25 lPag s s\ E= \.Iy

$ g) Generating Growttt Opporhrnities and productivity for Women Enterprises (GROW)- UcX 231.33br h) UGX l4Z.t,bt to Uganda Development Corporation i) UGX121.15ba towards Social Assistance Grants for Empowerment (SAGE) and UGX 16.Obn for Special grants for Persons with Disability; j) UGX l.4ofn for domestic arrears for Ft 2025126 k) Cattle compensation for Acholi, Lango and Teso - UGX 8(bn Indurtrlallzatlon aad Hvete Sector Dcvelopnent 1) UGX 275.09bn for SMEs in the marrufactr.rring and export sectors through the Investrnent for Industrial Ttansformation and Employment fIIWITE") programme; 2) UG|X 9o.97tn for infrastnrctr.rre development of industrial Parks; 3) UGX 47.6Ebt for capitalization of the Agrictilture Credit facility to support farmers but mainly agro processors that focus on value addition; 4) UGX 414.74 for capitalization of Uganda Development Bank and line of Credit. Tttis will support the entire agricultr.rre ecosystem, the private sector players to increase the stock and quality of tourism facilities, financing of the local production of essential goods as a precursor to achieving import substihrtion, among others. 5) UGX 2l,O.l7bn towards the Resource Enhancement and Accountability Programme (REAH, with the objective of increasing resounce mobilisation, improve planning and public investment rnanagement, and stnengthen accountabilit5r for qrality, effective and effrcient service delivery. ComnelcfdLf ry ftrtsrlturc a) Breeding, production, multiplication and availing animal seed and poultry to farmers cor.urtrywide (NAGRC&DB) - UGX 96.OSbn; b) Animal feed production on Government ranches and farms (NAGRC&DB) - UGX 25.5bn; c) Dwelopment of anti-tick vaccine - SU - UGX Sba; d) Research products and services suited for food, feed, market and ind (NARO) - UGX 24.I,blo;; e) Improving access and use of agricultural equipment and through the use of labour saving technologies - (MAAIF) - UGX 55.14bn 0 National Oil PaIm project- (MAAIF) - UGX 7o.712bo, gl Agricut ,hrre Value Chain Development (MAAIFI - UGX 73.25b1 s dgftr; F e I s

ArIilEXES SUPPLY SCHEDULE A€ RECITRREIIT BITDGEI ESTIUATES FIOR APPROPRIAflOIT FWIOiIS / 26 .s L ( VotG DcclDttm romA(IICXO0O'l 001 Office of the Prresident 324,998.288 oo2 State House 479.892.365 003 Offrcr of the Prime Minister 136,702,231 o04 Ministnr of Defence 2,829.837.0s3 o05 Ministry of Rrblic Serrrice 34.372.227 006 Ministry of Foreim Affairs 58,508,947 oo7 Ministry of Justice and Constihrtional Affairg 180.085.754 008 Ministry of Finance, Plannine and Economic Derrclopment 2.2L2.569.306 009 Ministry of Internal Alfairs 56,161,364 010 Ministrfof Agricultur:e, Animal Industry and Fistreries 188.455.147 011 Ministry of tocal Gorrcrnment 64,795,807 oL2 Ministry of lanrds. Housins & Urban Derrclopment 202,497.221 013 Ministry of Education and Sports 483.229.263 o14 Ministry of Health 205,074,513 015 Ministry of Ttalle,Indusfir and Co-Operatives 2L5,gLL,344 016 Ministry of Works, and Ttansport 803.669.546 ot7 Ministry of Energr and Minerals 123,600,351 018 Ministry of Crender, Labour and Socid Derrclopment 299.Ll9.088 019 Ministry of Watcr and Environment 48.s89.602 o20 Ministry of Information. and Communications Technoloev 192,481,913 02L Ministry of East African Alfairs m 4,327,O99 I o22 lftnistry of Tourism, Wildlife and Antiquities ruW 763 o23 Ministry of IGrnpala capital city and Metrropolitan hffi 7 110 Usanda Industrial Researctr Instihrte ruIRIl 17,689,292 tt 111 National Currictrlun Derrclopment Centne (NCDCI \- 37 1 LL2 Directorate of 39 lPa f -$(

Yot OaoAnUcl lmnt(rexOOOl 103 IaElrector General of Gorrcrnnent's Office(IGG) 22,797,LBL 104 Pgrliamentarfi Qs"n"?rissien(PARt) 20,805,900 105 Law Reform Commission(LRCl 378,011 106 Uganda Human Rfubts Commission UHRCI 6.765.97L 107 Ueanda Aids Comnission (UACI 557.370 108 National Planning AuthorityNPAl 44,917,O50 110 Uganda Industrial Research Instihrte (tIIRIl 2.893,060 111 National Curicrrlum Derrclopment Centre (NCDCI 395,000 tL2 Directorate of Ethics and InterritvlDEll &.770 114 Uegnda Cancer Instihrte (UCD 149.543.059 115 Usanda Heart Instihrte (UHII 69,527,635 116 Usarda National Medicd Storcs 1,432,600 LL7 Umnda Tourisn Board ruTtsl 43,180 119 Umnda Reeistration Senrices Buleau ruRSBl 3,900,000 t20 National Citizenship and Immigration ContnolNCICl 20.541.900 122 I(anpala Capital Citv AuthoritvffiCCAl 491.889.620 123 National totteries and Gamins Rernrlatorv Boad 1,000,000 L24 Equal Opportunities Commission 790.000 L25 NationalAnimal Genetic Resource Centne and Data Bank(NAGRC&DBl 96,370,842 L26 National Information Technolosies Autlroritv 237,215,050 L27 Umnda Vinrs Research Instihrte fi,rt/Rll L28 Umnda National Bramination Boad ruNEBl 10.408,O00 L29 Financiat Intellisence Authoritv IFIAI L,475,720 131 OtEce of the Auditor General IOAGI 1,565,702 L32 Fducation Service CommiseionESCl 1.583.666 133 Directorate of Rrblic Pnosecution(DPfl 18.336.749 L34 Health Seryice CommissionHSCl 7.O47.520 135 Directorate of Crovernrnent Analytical Laboratorv IDGALI 22.734.546 L37 National Identification and Rcsiutration Autlrority (MRAI 13.895.400 138 Uganda Innestncnt Authoritv (UIAI 308,997.082 r39 Petnoleum AuthoriB of Usanda (PAUI 31.s68.786 t4L Uganda Rerrcnue Authority (URAI 64.788.OOO L42 National Asriculhrral Researctr Organization(NAROl 101,163.251 L43 Uganda Bureau of Statistics (LJBOSI 18,360,000 L44 Usanda Folice 268.2tO.569 t 145 usandaPrisons^ I -/ )ffi .t' 6L.252.664 \ \s 51

17263 THE ELEVENTH PARLIAMENT OF UGANDA W EDNESDAY, 14 MAY 2025 The committee was informed that the proposal is aimed at promoting entrepreneurship and innovation. The committee observed that: 1. The three-year exemption period is a good proposal given that the majority of the new businesses started stand to benefit from this exemption. It has been noted that many businesses in Uganda rarely reach their fifth anniversary of their operations; 2. The proposal will promote formalisation of the SMEs by encouraging business registration as a requirement for qualification for an exemption; 3. The proposed registration with an investment capital not exceeding Shs 500 million is a reasonable threshold for many start-up businesses; and 4. The Bill provides for a business to be registered with an investment capital not exceeding Shs 500 million. The provision, as it is, is subject to misinterpretation that the investment capital must be registered. However, the provision intends to have a registered business with an investment capital not exceeding Shs 500 million. There is need to amend the provision to reflect that it is a registered business, which has invested Shs 500 million. The committee, therefore, recommends that Clause 2(b)(i) should be amended to reflect that it should be a registered business, which has invested capital not exceeding Shs 500 million, other than a business registered with an investment capital not exceeding Shs 500 million. 4.4 Exemption of tax on chemicals for agricultural use Clause 2(c) provides for insertion immediately after the words “agricultural use”, the word “or”. The committee noted that this would provide clarity on the existing exemption relating to chemical manufacturers. It clarifies that the exemption applies only to chemicals intended for agricultural or industrial use, thus removing the ambiguity. The committee recommends that chemicals intended for agricultural use be exempted from tax as proposed in the Bill. 4.5 Exemption of capital gains tax on transfer of assets Clause 3 of the Bill proposes to substitute section 76(4)(a), to amend the definition of reorganisation to indicate that the transfer of business assets can be made by a natural or a legal person and not a company alone. The committee was informed by the Minister of Finance, Planning and Economic Development that the proposal is intended to offer roll-over relief to permit businesses to restructure for efficiency and strategic flexibility without being burdened by the capital gains tax when there is no significant change in underlying ownership of the business. The committee observed that the amendment will make it possible for individuals who own assets to transfer them to companies that they own or control as part of the restructuring of the business without having to incur capital gains tax. Further, by removing the tax barrier for such transactions, the amendment will enhance efficiency, simplify restructuring, and provide clarity in the law. The committee, therefore, recommends that the proposal to exempt businesses which are transferring assets to another person other than an individual controlled by the transferor or the shareholders should be adopted. 4.6 Increase in Digital Service Tax Clause 4 of the Bill proposes an amendment to Section 86 of the Principal Act, to provide for a new subsection (5), indicating that the section shall not apply where a non-resident person is deriving income from providing digital services in Uganda to an associate in Uganda.

17286 THE HIDESAND SKINS (EXPORT DUTY) (AMENDMENT) BILL, 2025 Clause 2(3) of the Act provides that no levy shall be payable for any item in Schedule 2 to the Act. Schedule 2 provides for exemptions from export duty. The committee was informed that the removal of these exemptions is driven by the following key policy recommendations. 1. A surge in glue stock export, which has contributed to depletion of the raw material for the local industries; 2. A shortage of raw materials for tannery industries undermining their productivity and growth; 3. Promotion of import substitution and export- oriented industrialisation, in line with the Government’s policy of encouraging local value addition, and strengthening domestic manufacturing. By eliminating these exemptions, the amendment seeks to enhance availability of raw materials for Uganda’s tannery industry, support local value addition, and align with broader economic strategies aimed at industrial growth and export orientation. The committee observed that the imposed amendment seeks to limit export of raw hides and skins, which are inputs of local industries to produce leather products. There is an innovation to process hides and skins as processed food for export in (Ponmo). This value addition enterprise has benefited from the tax exemptions and promoted value addition in Uganda’s local industry. The rejected hides and skins from tanneries are transformed into processed food, and Uganda Revenue Authority (URA) has categorised Ponmo under glue stock, and has not assigned it a separate product category. Therefore, Madam Speaker, the committee recommends, The proposed charge of $0.8 or rather 80 cents per kilogram be charged on raw hides and skins exported out of the country, and we propose that that be adopted. URA should exempt this category of Ponmo from export duty. Conclusion, the committee recommends that, “The Hides and Skins (Export Levy) (Amendment) Bill, 2025” be passed subject to the proposed amendments. I beg to submit.

By the way, when I mentioned the approval, I put the question. I did. Hon. Goli, didn’t I? Honourable minister, move a motion. MOTION FOR A RESOLUTION OF PARLIAMENT TO AUTHORISE AN ADDENDUM BY GOVERNMENT TO THE PROPOSAL TO BORROW UP TO EUROS 162,445,674.1, AN EQUIVALENT OF $178,276,661.7 FROM THE EXPORT- IMPORT BANK OF CHINA (CEXIM) TO FINANCE THE DEVELOPMENT OF INDUSTRIAL PARKS - POWER SUPPLY TO INDUSTRIAL PARKS AND POWER TRANSMISSION LINE EXTENSION: INCLUSION OF SINOSURE INSURANCE PREMIUM

Madam Speaker, I beg to move a motion to authorise Government to amend, by way of an addendum, the proposal to borrow up to Euros 162,445,674.1, an equivalent of $178,276,661.7 from the Export-Import Bank of China (CEXIM) to finance the development of industrial parks - power supply to industrial parks and power transmission line extension: Inclusion of SINOSURE Insurance Premium.

Madam Speaker, on 30 January 2020, Parliament passed a resolution authorising Government to borrow up to Euros 162,462,445.694 from the Industrial and Commercial Bank of China to finance the power supply to industrial parks and grid upgrade and power transmission extension project. Six months later, the Minister of Finance, Planning and Economic Development moved a motion to amend the same resolution of Parliament by substituting Industrial and Commercial Bank of China with the name EXIM Bank of China, as evidenced in the revised drawn agreement between the Government of Uganda and the EXIM Bank of China. The minister informed the House that during implementation, the government of China had indicated that the financing institution would be the Exim Bank of China, not the Industrial and Commercial Bank of China, as had previously been stated, and intimated that the same terms and conditions would apply. Based on the statement by the Minister of Finance, Planning, and Economic Development that the terms and conditions were the same, Parliament, by resolution, authorised the Government to change the creditor. On 23 rd January 2025, I presented an addendum to provide for the insurance premium of 7.06 percent on the loan principal and interest of the approved borrowing up to Euros 164.445 million, an equivalent of $178.276 from the Export- Import Bank of China to finance the same project. What does this mean to the cost? Everything in the cost remains unchanged. To bring the House up to speed, I can go through the terms. The total amount is Euros 162.45 million to finance 75 per cent of the commercial contract that will deliver the same project. The terms are the following; Maturity period is 15 years, grace period is 5 years, and the repayment period is 10 years. the interest rate is 6 months EURIBOR (Euro Interbank Offered Rate), plus 2.6 per cent margin per annum, and the management fee is 1 per cent of the loan amount. The commitment fee is 0.5 per cent, the insurance cost - this is the Sinosure that we are bringing in as an amendment, is 7.06 per cent of both principal and interest. The effective interest rate without [Mr Mpuuga] MOTION FOR A RESOLUTION

17295 THE ELEVENTH PARLIAMENT OF UGANDA W EDNESDAY, 14 MAY 2025 insurance is 5.16 per cent, the effective rate with insurance changes now to 5.85 per cent. The effective interest rate with insurance on principal only is 5.63 per cent. Madam Speaker, with this information, I pray that the House considers the Motion so that we can proceed with providing the necessary infrastructure to the industrial parks.

Like the minister mentioned, this loan was approved by Parliament on the 30 th but at that time, the assumption was that there was going to be no insurance. Up to today, no disbursement has been made since 2020 because the terms were amended later, and we are supposed to pay insurance. That is why there is that change. Therefore, the amount remains Euros 162 million or $178 million, but this time including insurance. The only change is on insurance. Because of that, we have one observation on the delayed presentation of the addendum. The committee observed that the loan agreement was signed by both the lender and the borrower in May 2024, following the Parliament’s initial approval in 2020. The committee also observed that China Export and Credit Insurance Corporation approved the insurance policy on the 29 th 2022. The committee noted that the processing of this loan facility had been riddled with significant time lags and, as such, had affected the implementation of this project. The committee recommends that the Minister of Finance, Planning, and Economic Development does a comprehensive loan approval submission. The minister should ensure that all the key components of the loan facilities, including associated insurance covers such as Sinosure, where applicable, are clearly outlined and submitted to Parliament at the time of the loan approval request to avoid piecemeal approvals and associated delays. The committee further recommends that the Minister of Finance, Planning, and Economic Development should be held accountable for any omissions or delays in submitting complete information to Parliament and should institute internal checks to improve the quality and timelines of borrowing proposals. This will enhance the credibility of the projects implementation timelines. Madam Speaker, that is one of the key proposals we had, and in conclusion, the committee noted that as part of the loaner conditions for effectiveness, the borrower should provide the lender the evidence of payment of an insurance premium. That means it has to be paid before. In this case, the insurance policy is to be issued by the insurance company, which is Sinosure. Without this insurance payment, no disbursement can be affected. That is why, since 2020, no financing would be available from this source for the power supply to industrial parks and the power transmission line extension. Given the fact that this loan had been approved, as highlighted in the background, the committee proposes that; 1. The House considers the approval of this request in line with the committee recommendations that the insurance premium be computed based on the principal loan amount and not both the principal and interest. Additionally, the provision within the financing agreement to waive sovereign immunity should be done away with, given the interest premium charge, which the committee believes is sufficient and offers assurance that the loan is secured. 2. Going forward, the minister for finance presents complete loan terms and conditions to Parliament for consideration and approval

Honourable Members, I now put the question that the Parliament approves an addendum to the proposal to borrow up to Euros 162,445,674, equivalent to $178,276,661 million from Export-Import Bank of China, to finance the development of industrial parks, power supply to industrial parks and power transmission lines extension, inclusion of Sinosure Insurance Premium. (Question put and agreed to.)

Madam Speaker, the Value-Added (Amendment) Bill, 2025 was read for the first time on the 27 of March 2025 and referred to the Committee on Finance, Planning and Economic Development for consideration and in accordance with Rule 135 (1) of the Rules of Procedure of Parliament, the committee scrutinised the Bill in accordance with rule 135(2), (3) & (4) of the Rules of Procedure and now begs to report. The object of the Bill is to amend the Value Added Act, Cap. 344, to: 1. Provide for the anti-fragmentation rule for imported goods; 2. Exempt biomass pellets and solar lanterns from Value Added Tax; 3. Zero-rate the supply of aircrafts; and 4. Prescribe the United Nations-related agencies and specialised agencies as listed institutions. Methodology While considering the Value Added Tax (Amendment) Bill, 2025, the committee utilised the following methods. Meetings The committee held meetings with the following entities: 1. The Ministry of Finance, Planning and Economic Development; 2. Uganda Revenue Authority; 3. PricewaterhouseCoopers; 4. Certified Public Accountants of Uganda; 5. Private Sector Foundation Uganda; 6. Uganda Manufacturers Association; 7. Birungyi, Baraata and Associates; and 8. American Chamber of Commerce, the French Chamber of Commerce, the British Chamber of Commerce, the Netherlands Trade and Industrial Platform. We received written submissions from the Attorney- General, Kikuubo Entrepreneurs Initiative and Bawunha & Badebye, Certified Public Accountants. Under document review, the committee reviewed and made reference to the following documents: 1. Submissions from the stakeholders mentioned above; 2. Policy Note: the VAT Exemption for Biomass Pellets in Uganda from the Ministry of Finance, Planning and Economic Development; 3. Policy Note: Imposition of VAT on supply of billets from the Ministry of Finance, Planning, and Economic Development; 4. The Value Added Tax (Amendment) Bill explanatory notes; and THE VALUE-ADDED TAX (AMENDMENT) BILL, 2025

17221 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 17 APRIL 2025 (ii) Uganda Business and Technical Examinations Board (UBTEB) has now been merged to form Uganda Vocational and Technical Assessment Board; (iii) The Directorate of Industrial Training, under the Ministry of Education and Sport, has also been merged to form the Uganda Vocational and Technical Assessment Board; (iv) Uganda Nurses and Midwives Examination Board, under the Ministry of Education and Sports, has been merged to form Uganda Health Professionals Assessment Board under the Ministry of Education and Sports; (v) Uganda Allied Health Examination Board, under the Ministry of Education and Sports, has also been merged under the Health Professionals Assessment Board in the same ministry; and (vi) Management and Technical Advisory Centre (MTAC), under the Ministry of Trade, Industry and Cooperatives, together with Nakawa Vocational Training Institute, under the Ministry of Education and Sports, have been merged to form the National Vocational Training College under the Ministry of Education and Sports. The approved budget for the rationalised institutions amounts to Shs 62.45 billion, as at the end of Quarter three, Shs 49.12 billion had been released, leaving a balance of Shs 13.33 billion. The balances of this financial year under the rationalised institutions will be transferred to the receiving entities to ensure continuity and seamless transition of service delivery. Arising from the above, the details of the required budget transfers are as follows: (i) Vote 162: Uganda Microfinance Regulatory Authority - an amount of Shs 2.55 billion to be transferred to Vote 008: Ministry of Finance, Planning and Economic Development; (ii) Vote 165: Uganda Business and Technical Examinations Board - an amount of Shs 9.36 billion to be transferred to Vote 169: Uganda Vocational and Technical Assessment Board; and (iii) Vote 013: Ministry of Education and Sports, Directorate of Industrial Training, Shs 1.42 billion to be transferred to the Uganda Vocational and Technical Assessment Board. Mr Speaker, I wish to note that there are no savings from the above rationalised institutions in the Financial Year 2024/2025 because the terms of employment have not changed for the months up to June for UMRA staff transitioning to the Ministry of Finance, Planning and Economic Development. Similarly, under Technical and Vocational Education and Training (TVET) institutions, the terms of employment have remained the same. I submit.

Mr Speaker, under total balances for transfer, the schedule has approved the budget for the Financial Year 2024/25 and we have total releases and a column, which gives you Shs 49.12. Then we have total balances for transfer under the Uganda Microfinance Regulatory Authority (UMRA) transfer to the ministry for finance, Shs 2.554 billion, under the Uganda Business and Technical Examination Board, Shs 9.363, and under the Directorate of Industrial Training, Shs 1.415. When you total this, it will give you Shs 13.33 billion.

Thank you very much, Mr Speaker. I really thank the Government for the Shs 1 billion which has been provided for local government; in Dokolo, it has helped us a lot. Thank you. Having said that, I know that roads under the spirit of programme budgeting support issues related to industrialisation. In programme budgeting, we are talking about industrial parks. We have planned for about 22 industrial parks, but the budget for them is always a challenge. My proposal is, why don’t we have those districts which have industrial parks added at least half a billion, so that they have one and a half billion, to be able to start developing their parks, by opening the roads and then also have electricity. Having said that, I want to reiterate what my brother mentioned, the Dokolo-Namasale Road. The importance of that road is that it will reduce the transport distance by 164 kilometres. It will also reduce the consumption of fuel by 40 per cent. If that happens, that is what we call competitiveness, which a road is supposed to bring, by supporting a process of industrialisation, which I have talked about in my earlier comment. My request is, kindly let us plan for roads to develop the place well, especially if we do not have municipalities. We are expecting a municipality in Dokolo, but as we wait for it, let us have incentives which come with the municipality in terms of an increase in areas for roads. Thank you.

Thank you, Mr Speaker. We want to know the fate of the land titles of the people of Amber Court, Kimaka - generally, people affected by the Jinja-Mbulamuti-Kamuli-Bukungu Road. This road has been promised since 2001, it is now 25 years later, yet it had reached a high stage of procurement to make it now a bitumen class 2 road, and that was under Uganda National Roads Authority (UNRA). Unfortunately, UNRA is now rationalised under your docket, honourable minister, so we do not know its fate. When are you going to progress and deliver that road, or have we now seen the end of that promise? But along with that road, Jinja City was promised 20 kilometres, which were to pave the roads within the city. I cry for the road that goes to the industrial area. In that area, we find BIDCo Uganda Limited, a company that is paying a lot of tax. It is one of the 10 highest tax-paying companies in Uganda, but along with that, there are still rolling mills; there is one making iron sheets. That road serves industries. So, we would like to know the fate of this project. It was on a pre- financing arrangement, and we were ready to receive it, but we do not know whether, when you took UNRA, we also lost the project. Otherwise, people are eager to listen to you on that. Lastly, at a national level, the substances that make a road like aggregate, marram, and maybe in the near future bitumen, are going to be locally sourced. What is the cost of the road? Why is it so high? Are we paying for the skill? (Member timed out.)

Mr Speaker, thank you for giving me this opportunity. I thank the chairperson for the wonderful report. We need to state facts. I do not know whether Members know that the power lines that we have are so weak. The power outage is too much. We have lines passing by in our constituencies, but every day, power is not there. We have power once in two weeks. I want to know and inquire from the minister why it is happening? What is the problem? If there is an incapacity, tell us. If you cannot control and manage electricity, hand it over to a person who can. Secondly, we have not talked about the power tariff. Our people cannot afford; industrial and domestic, it is too high. Why don’t we provide something in the budget to subsidise? We know our people cannot manage. We are talking of

16950 APPROVAL OF BUDGET ESTIMATES FOR FY 2025/2026 Return on Investments by Uganda Development Corporation (UDC) UDC has established to promote and facilitate industrial and economic development in Uganda. As the Government’s investment arm, UDC drives industrial growth by establishing subsidiary and associate companies, forming private partnerships with commercial industries or agriculture enterprises, promoting, facilitating and implementing public-private partnerships. UDC also assists in financing and managing projects that promote industrial or economic development and conducts research into industrial development. The committee observed that Government through UDC has been investing in various Small and Medium Enterprises (SMEs) The committee received information from UDC on the current impact of investment, which reveals that the investment has created over 2,000 jobs in the agro-industry and over 1,500 in infrastructure services. There is an annex. The committee observed that the Government’s investment in a number of UDC projects, as seen in annex 1, has supported the economy through job creation, export earnings, and tax revenue. However, by December 2024, some investments had only contributed to job creation without any impact on export earnings or tax revenue. These include Budadili Arabica Coffee Mills, Atiak Sugar Factory, Nauzila Limited, Fine Spinners Uganda Limited, and Speak Resort Convention Center. The committee recommends that UDC, as the Government’s investment arm, ensure that private entities in which the Government invests funds have higher economic returns in terms of tax revenue and export earnings. Inadequate Funding of UDC for investment The committee observed that during consideration of the National Budget Framework Paper Financial Year 2025/26, 2029/30, UDC had a total budget of Shs 14 billion, only catering for Shs 11 billion wage and non-wage 21. There were no funds to fulfil UDC’s ongoing capitalisation commitments, such as to Abubaker Technical Services and General Supplies which is Shs 26 billion and new commitments to already appraised funds. Mr Speaker, following Parliament’s recommendation to capitalise UDC with at least Shs 361 billion for the various projects, Additional funding was allocated to UDC, increasing its budget to Shs 125 billion. This will enable it to cater for investments in some projects, though it will leave a funding gap of Shs 266 billion. Below is the table of investment projects for the Financial Year 2025/2026, with its figures in billions. Colleagues can read. Observations on UDC: Mr Speaker, the committee noted that while some projects have more proposed allocations than indicated in the National Budget Framework paper, others receive less. For instance, Biyinzika Enterprises received a funding requirement of Shs 28.9 billion but has a proposed allocation of Shs 39.77 billion in the draft budget estimates for the financial year 2025/26, while Investments in Grain Afrokai has a proposed allocation of Shs 9 billion against a funding gap of Shs 25 billion. The Committee noted that Biyinzika Enterprise Limited was reported to be an integrated poultry enterprise engaged in the production and sale of day-old chicken animal feed. However, by the time the committee prepared this report, it had not been furnished with sufficient information, to provide a basis for

16952 APPROVAL OF BUDGET ESTIMATES FOR FY 2025/2026 provided for in the Financial Year 2025/2026 to enable it to continue service delivery. Below is the detail of inadequate funding for the Management Training and Advisory Centre. Mr Speaker, the committee recommends that the Government should, in the short to medium term, support MTAC by funding the proposed interventions above. Uganda Cooperative Alliance Limited (UCAL) Revival of Uganda Cooperative Bank I will go straight to the recommendations because of time. The committee recommends that the Government allocates Shs 2.5 billion to UCAL to mobilise resources and conduct research to facilitate the re-establishment of Uganda Cooperative Bank. Uganda National Bureau of Standards (UNBS) Retention of staff The committee observed that the budget for UNBS for the Financial Year 2025/2026 increased from the indicative figures in the BFP, as summarised in the table below. Honourable colleagues can read through the table. The committee observed—that is, on page 53— that in Financial Year 2024/2025, the budget for UNBS was Shs 59 billion, which has been increased to Shs 138.3 billion. While the wage component has not increased, the non-wage and development budgets have increased by Shs 46.7 billion and Shs 30 billion, respectively. Mr Speaker, the committee takes note of the increase in UNBS’s non-wage budget and development budget to address the decentralisation of UNBS’ services, as recommended by Parliament. However, the committee is concerned that the provision of an additional wage bill to cater for staff salary enhancement to match that of other scientists and retain staff has not been implemented and may pose a challenge to implementing the budget, with no critical staff to execute it. Below are the salaries of other scientists in the other entities compared to UNBS. I will go straight to the recommendations on page 54. The committee recommends reallocating Shs 10 billion for non-wage component of UNBS, as follows: a) Shs 5.8 billion for enhancement of salaries for existing staff; and b) Shs 4.2 billion for recruitment of more staff. Vote 110 – Uganda Industrial Research Institute Inadequate funding for Uganda Industrial Research Institute a) The committee recommends that the Government allocates Shs 9.8 billion to Uganda Industrial Research Institute to ensure that the above critical activities are undertaken in the short to medium term. b) The committee further recommends that the Government facilitate Uganda Industrial Research Institute’s decentralisation of services across different regions of the country. c) The committee further recommends that incubators domiciled at Uganda Industrial Research Institute, Nakawa Campus, graduate in a timely manner to give new incubators an opportunity to showcase and build their capacities. Uganda Free Zones and Exports Promotion Authority Staff recruitment The committee recommends expediting staff recruitment under the Uganda Free Zones Authority to facilitate the implementation of the Uganda Free Zones and Exports Promotion Authority’s planned activities for the remaining part of the Financial Year 2024/2025 and the new Financial Year 2025/2026.

Thank you, Mr Speaker. I also thank the chairperson and the Committee of Trade, Tourism and Industry for the comprehensive report presented. I take note that Uganda Industrial Research Institute (UIRI) and Management Training and Advisory Centre (MTAC) are very critical institutions that, when allocated more funds, can introduce significant skills, equipment to our people. For example, some of us always endeavour to bring trainees to these institutions. When they have sufficient funds and these trainings are decentralised to

Thank you, Mr Speaker and thank you, Chairperson and members, for this important report. We take note of just a few points because of time. One is appreciation to the committee or the contribution of this sector to our GDP. This is mainly the industrial sector, which contributes 27.3 per cent, manufacturing contributes 16.5 per cent, creating 1.4 million jobs. This has been because of the policy of import substitution. We can see that the products that we are producing here are replacing those that we used to import. There are quite a few concerns that were raised, namely, on the funding by Uganda Development Corporation (UDC) to different companies. One, I want to clarify on Biyinzika Poultry International Limited. Mr Speaker, it is an indigenous company, which is interested in investing in animal feeds. We thought that this sector, which is growing, should be supported by the Government. The requirement that we need is Shs 45 billion. The amount of money that appeared previously was Shs 28 billion, but when we received the final figures from the minister for finance, the allocation proposed was Shs 39 billion. That explains the difference. We think that by supporting this company, we are actually impacting on the import substitution of animal feeds, and growing this sector. We are of the opinion that this money should not be reallocated. Instead, it should be increased. The second point is about Fine Spinners Uganda Limited. Mr Speaker, we have already signed an agreement, and we are investing more money in the cotton sector. I do not know whether Members have visited the Fine Spinners Uganda Limited factory here in Bugoloobi, which is doing a fantastic job. We are investing Shs 58 billion. We have already paid Shs 28 billion to the company. The remaining Shs 31 billion is to import the factory lines. We are of the opinion that reallocating Shs 5 billion to other companies that are not ready will just stop the importation of this equipment. Mr Speaker, I pray that as we go into the final arrangement to maintain the Shs 31.5 billion, so that we import the equipment and start the factory. If we do not do that, how shall we import part of the equipment? Unfortunately, you cannot import part of the equipment. You must import all the equipment that you need, and we are at the tail end. Mr Speaker, I beg that as we finalise, we maintain this Shs 5 billion so that we can import the equipment. You are familiar with manufacturing. If you are ordering equipment, you cannot order 95 per cent of the equipment; it must come as a whole. The other issue was about certification, and it was raised by the honourable colleague opposite me. I would like to inform you that the Ministry of Trade, working with the Ministry of Agriculture, has prepared a project to address all issues related to exports, including standards, radiation and all that. A project of around €174 million will be coming to this House by the Ministry of Finance to address post-harvest handling and all these issues, including certification. Then, we shall impact on the exports that we have. Finally, there was the issue about the sugar mill of Busoga - (Interruption)

Thank you, honourable minister. Please, we are done. No, we are done with this. Sorry, honourable colleagues, I want to give this guidance. I have listened to the chairperson and I have read through the report. I have listened to the minister. It seems there was a gap. Honourable minister, it seems there is additional information for which the committee requested clarification, but you never gave it. For them, they had to process the statement based on the documents they had. Okay? Therefore, on the issue of Biyinzika, fine spinners, please, provide the committee more information and clarification, so that it is very clear before this money is redistributed, so that at the Budget Committee level, we can have it well harmonised. Okay? Number two, I have seen and read through different reports and noticed that the committee on tourism has processed vote 110, committee on presidential affairs has processed vote 110. I think we need to start moving together as a Government. You see, this is - colleagues and members of the Cabinet, this is a matter of the law. Okay? The law is here. The Uganda Industrial Research Institute Act, 2006, places it under the minister in charge of industry. I do not know how the Secretariat for Science and Technology works. I have the law here. Even if you go, I have the law here. The directors, the heads, are appointed by the minister in charge of industry. Therefore, the interpretation in the Uganda Industrial Resource Institute Act, 2006, says thus: “Minister means the minister responsible for industry.” If you do not amend the law, you cannot work in anticipation. If you want to change something, go and amend the law. If you do not amend the law, we will go with the existing law. Simple! Therefore, the Committee on Presidential Affairs, please - I will not disturb you with Uganda Industrial Research Institute (UIRI). I am even seeing discrepancies in figures. Let us - if the Government wants the institute to go under the secretariat, because it is not a ministry, the secretariat of science and technology, let them amend the law. They should bring a proposal. Otherwise, we shall look shabby here if we continue that way. Honourable chairperson, do you want to make any clarification?

16978 APPROVAL OF BUDGET ESTIMATES FOR FY 2025/2026 headquarters, including the acquisition of land. The land has already been acquired, 27 hectares, but we need 50. The remainder, which was pledged by His Excellency the President, has not been accomplished hence the need for this Shs 5.4 billion Uganda shillings. I will remind you of the fact that the Afro- Arab Youth Conference will be convened here during the course of next financial year; actually towards the end of this calendar year. It is going to be headquartered here in Uganda, therefore, the urgent need for this money. Vote 002: State House The State House is quite clear. We have to support the graduates of the skilling programme. We have 19 hubs, but we need to expand. On that, we recommend that the Government provides the State House a start- up support for skilling programme graduates, and also expedite establishment of a SACCOs where the skilling programme graduates can submit proposals to access funds to expand their enterprises, in the Financial Year 2025/2026. The committee further recommends that the Government explores the possibility of expanding the industrial hubs to have a national outlook. Poverty alleviation model villages; we have 36. We need many more, and to expand them, we have recommended that the Government provides Shs 6 billion to enable the State House to effectively roll-out 10 more model villages, to other parts of the country. Uganda AIDS Commission Uganda AIDS Commission is currently going through dire straits, because of what you all know regarding funding from the United States of America and other donor agencies. They have sort of halted their support, and they are getting it a little bit hard. The committee established that the dissemination of HIV prevalence messages is inadequate and therefore needs more funding. We recommended that Shs 18.2 billion be provided to vote 107 to facilitate packaging and dissemination of HIV prevention messages in the whole country. The committee further recommends that Uganda AIDS Commission considers repackaging the HIV prevention messages for dissemination that depict the true dangers of living with HIV/AIDS and also adapting other new methods of communication. Vote 110: Uganda Industrial Research Institute (UIRI) We have been guided, but it is clear there. I will not go into those details. Ethics and Integrity is doing quite some good job but is very poorly funded and has funding gaps, which we identified here. We recommended that Shs 3.935 billion be provided to Vote 112 to facilitate the retooling of the Directorate of Ethics and Integrity. They do not even have computers and their desks are completely worn out. It is a sad story in that office. Internal security organisation: That is Vote 158. The details are very clear there. We only identified one important issue, and that is enhancement of technical infrastructure. Given the current trend of technology, the organisation needs to upgrade their technical capacity and they need Shs 50.06 billion but only Shs 2.5 billion has been made available. We therefore recommend that the excess gap of Shs 49.06 billion be made available to enable internal security organisations to move with the times. The threats and mandates are clear. I would not waste a lot of time taking you through those details. Vote 159: External Security Organisation (ESO). Their mandate is derived from the External Security Organisation Act. They do a lot of

Thank you, Mr Speaker. I would like to correct something. When he signed, he told me to take the document to the office of the Clerk and I did that. Let me go straight to the areas of dissent. In accordance with Rule 205 of the Rules of Procedure of Parliament of Uganda, the minority members of the committee dissent from the opinion of the majority committee, on the following grounds; 1. Failure to lay on Table the Ministerial Policy Statement of the Ministry of Science, Technology and Innovation Mr Speaker, pursuant to Rule 146 of the Rules of Procedure of Parliament, each minister responsible for a Vote, ministry or head responsible for a Vote shall by the 15 th day of March submit to Parliament a policy statement for the preceding financial year for the ministry or Vote. To that fact, Vote 167 and Vote 110 – Science, Technology and Innovation and Uganda Industrial Research Institute, respectively – failed to lay on Table their Ministerial Policy Statements for the Financial Year 2025/2026. They acknowledged this before the committee, that they were unable to table their Ministerial Policy Statements on time. 2. Concerns regarding the proposed increase in the facilitation budget for RDCs in six districts – as named in the observation of the majority report The majority report, on page 8, recommended that Shs 12.424 billion be provided for facilitation of Resident District Commissioners (RDCs) and that the size and nature of each district be among the key factors considered. The districts are; Kasese, Isingiro, Ntungamo, Wakiso, Tororo and Sironko. Based on the recommendation, each Resident District Commissioner is expected to receive Shs 2.071 billion, annually. This is twice the budget of the district road fund. Each RDC is supposed to receive that – if you compute – annually, which translates to Shs 172 million per month. To put this into perspective, this is an amount equivalent to the annual roads maintenance budget for a typical township. A case in point is that Wakiso District currently has five Deputy RDCs, each assigned to oversee a specific area. Entebbe has a Deputy RDC, Kira has a Deputy RDC, Kasangati has a Deputy RDC, Makindye has a Deputy RDC, Makindye-Ssabagabo has a Deputy RDC and Nansana Municipality also has a Deputy RDC. In addition to these RDCs, there is an overall RDC for the district. Furthermore, the President recently appointed five Assistant RDCs in Wakiso, bringing the total number of appointees in the RDC’s office to 11 individuals. This level of staffing in a single district raises concern of overstaffing, especially at a time when the country faces numerous critical funding needs in essential sectors. The proposed allocations, if implemented without efficiency checks and accountability could divert substantial resources from priority areas such as health, education and infrastructure. What do we propose? We propose that additional funds should not be provided to facilitate the RDCs, based on the size and nature of the districts. In fact, the number of

Much obliged, Mr Speaker. However, it is at the back of our minds that out there, we are going for something. Aware of that, I really wanted this committee to look at the presidential pledges so that the name of the President is saved, and some of us who support those presidential pledges are also saved. This is so that they do not remain empty tins surrounding the constituencies. Two, I support the proposal to give remuneration for the RCCs, RDCs and Assistant RCCs. Arua City has nine RCCs, with deputies and assistants and there is no space for those nine people to sit. You find all the Assistant RCCs packed in one room. When people who need the services come, you have nowhere to put them. The population that needs the services from these offices have nowhere to sit. Therefore, I urge the committee to look at that so that office space can be given to these Assistant RCCs and their deputies. Lastly, these industrial hubs are doing wonders in the regions and constituencies, but the manner in which these youth are selected is not clear. You realise that people have already been taken for the training, but when you come back to your constituency – in your wards or parishes – you find that the youth were left out. I also wanted the committee to look at that. As we support the industrial hubs, we should have

Thank you, Mr Speaker. I now come to my justification of the motion. Briefly, the theme of this year’s budget is: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation, and Market Access.” The total resource envelope is Shs 71,956,621,530,685. The areas of focus in the budget are the ATMs, which means Agro-industrialisation, Tourism, Mineral-based industrial development, and Science, technology, innovation, including ICT and the creative art industry. The key enablers are 10, which we have identified, and they are the following: 1. Maintaining peace, security, and the rule of law; 2. Human capital development, including health, education, water, and social protection; 3. Full monetisation of the economy through the Parish Development Model (PDM) and other wealth programmes; 4. Infrastructure development, including roads, railways, and electricity; 5. Regional integration; 6. Irrigation through bulk water to stabilise agriculture; 7. Manufacturing with a focus on industrial parks; 8. Eliminating corruption; 9. Environmental and natural resource conservation; and 10. Vertical and horizontal integration of the economy. We have attended to crucial issues that were raised by Cabinet, Parliament, the NRM Parliamentary Caucus, and the Presidential Advisory Committee on Budget, and some of the recommendations of Parliament at the Budget Framework Paper stage have been taken care of. We have also taken care of key policy commitments, mainly the domestic arrears in the areas of agriculture, health, education, including African Cup of Nations (AFCON), Electoral Commission, and the general election roadmap, the wage shortfalls in the local governments, unfinished infrastructure in the roads due to counterpart funding, among other things. I appeal and invite colleagues to support this process. I also inform colleagues that this motion I am moving is basically for ushering us into receiving the ministerial policy statements. Afterwards, I will move another motion for supply, which will lead us into appropriation. Thank you, Mr Speaker, and Members for listening to me. I submit.

Mr Speaker, I am sorry for this typo, but I was careful when reading. I corrected and read Financial Year 2025/2026. The resource envelope for the Financial Year 2025/2026 will be Shs 71,956,621,530,685. Mr Speaker, next year’s budget is focused on growing the economy tenfold through the ATMs and the enablers as follows: (i) Agro- industrialisation; (ii) Tourism development; (iii) Mineral-based industrialisation; and (iv) Science, Technology, Innovations, including ICT and the creative art industry. The enablers are the following: (i) Maintaining peace, security and the rule of law; (ii) Human capital development, including health, education, water and social protection; (iii) Full monetisation of the economy through the Parish Development Module (PDM); (iv) Infrastructure development. Here we are looking at roads, railways and electricity; (v) Regional integration; (vi) Irrigation through bulk water to stabilise agriculture; (vii) Manufacturing with a focus on industrial parks; (viii) Eliminating corruption; (ix) Environmental and natural resources conservation and protection; and (x) Vertical and horizontal integration of our economy. In this budget we have attended to crucial issues that were raised by the Cabinet, Parliament, the NRM Parliamentary caucus, the presidential advisory committee on budget and the national Budget Framework Paper. We have also addressed other critical policy commitments, mainly in domestic arrears, agriculture, health, education, including the African Cup of Nations 2027, the Electoral Commission and the General Elections Roadmap, wage shortfalls in the local governments, unfinished infrastructure projects due to counterpart funding, amidst the constrained fiscal space.

16770 THE MORTGAGE REFINANCE INSTITUTIONS BILL, 2024 Vote 122: Kampala Capital City Authority – Shs 6.711 billion The committee was informed that KCCA provided Shs 6.71 billion to cater for shortfalls in the city cleaners’ wages. Shs 6.594 billion resulting from the increase in the number of workers and the new terms of employment for the cleaners, and allowances for parish chiefs for PDM monitoring. The committee recommends approval of Shs 6.711 billion to vote 122. Vote 131: Office of the Auditor-General (OAG) – Shs 17.2 billion; The committee was informed that the Office of the Auditor-General requires Shs 17.2 billion for restoration of the budget for OAG to enable efficient operations for the rest of the financial year. The committee recommends approval of Shs 17.2 billion to Vote 131. Vote 137: National Identification and Registration Authority (NIRA) – Shs 436.872 million NIRA required this money for the civil registration department was received from URSB during RAPEX. The committee recommends approval of Shs 836.872 billion to Vote 137: NIRA. Vote 138: Uganda Investment Authority – Shs 5 billion The committee observed that the Uganda Investment Authority required Shs 5 billion from contractual obligations for the owner’s engineer for works at Kampala Industrial and Business Park Namanve. The committee recommends approval of Shs 5 billion to Vote 132. Vote 142: National Agricultural Research Organisation (NARO) The committee observed that the National Agricultural Research Organisation required Shs 70 billion: i) Out of which Shs 10 billion was for the management of aflatoxins in cereals and other related products. NARO has developed aflatoxin mitigation products and established a production and research facility with the capability to produce the desired tonnage of aflatoxin mitigation in the country. It required 60 billion for the roll-out of the anti-tick vaccine. This will enable NARO to roll out the anti-ticks’ vaccine, after which the facility will be self-sustainable. NARO has completed the clinical trials of the vaccine, and it has been proven to be 95 per cent effective. This supplementary will enable the production and distribution of 20 million doses of the vaccine. The committee recommends Shs 70 billion to Vote 142: National Agricultural Research Organisation (NARO) Vote 167: Ministry of Science, Technology and Innovation – Shs 60 billion The committee was informed that the Ministry of Science, Technology and Innovation required Shs 60 billion for the completion and operationalisation of the Coffee Value Addition Park in Ntungamo. The funds are for completion of the standards and certifications, and working capital to enable purchase of coffee from farmers, operational funds for running the coffee processing hub, marketing and branding. The committee recommends the approval of Shs 60 billion to Vote 167. Vote 301: Makerere University – Shs 5 billion The committee was informed about the shortfalls in education material, support for research and support for gender and equity interventions to replace donor funding which has ended, as we all know. The committee recommends approval of Shs 5 billion to Vote 301. SUPPLEMENTARY EXPENDITURE SCHEDULE NO.3 FOR FY 2024/2025 [Mr Kateshumbwa]

16690 THE ENGINEERING PROFESSIONALS BILL, 2024 through other means, most especially through tree planting and river reclamation. Recommendations The committee recommends that: 1. Kampala Capital City Authority should construct a modern waste-to-energy plant that enables the daily consumption of waste generated in the city. This will save money for the decommissioning of the Kiteezi landfill and establishing another landfill; 2. Work in collaboration with public institutions such as the Uganda Industrial Research Institute and Kira Motors Corporation, among others, to design the bodies of garbage trucks, which is much cheaper than importing the trucks; 3. Ensure the segregation of waste at the point of collection to enable segregation at disposal and encourage recycling; 4. Scale up tree planting in the city to counter the effects of environmental degradation and the climate; 5. Embrace technology with regard to air pollution sensors in various parts of the city and use the data generated to inform policy action towards countering air pollution; 6. Increase the number of garbage collection equipment and make the same available in all areas of the city; and, 7. Engage in mass sensitisation and engagement regarding proper waste management, and incentivise city cleaners by providing them with enhanced pay and permanent employment to ensure increased garbage collection and enhanced welfare. The committee also visited the education sector in Kenya’s county governments. Nairobi City County runs 211 primary schools, 216 early childhood development education centres, and 193 secondary schools. Whereas Education in public schools in Kenya is free, feeding the learners remains a challenge -

16667 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 6 MARCH 2025 Aware that this is now becoming a security threat, the prayer of our people is as follows: 1. The security personnel that are already evicting people from this piece of land should be addressed so that our people can peacefully continue using this land. 2. In the National Resistance Movement (NRM) manifesto, the President, at the beginning of this term, offered an industrial park to Tororo. We have been grappling with where to find this land. Our people are saying 360 acres of land is sufficient to host the industrial park where they can benefit from the same. Thank you.

Thank you, Mr Speaker. I would like to thank the mover of the motion for a good motion. I support the motion on three grounds, that is, simplicity, customer convenience and cost-effectiveness. Mr Speaker, I have three concerns that I need to raise to the mover of the motion as well as the Minister of Information, Communications Technology and National Guidance. One is the legal and regulatory framework implications. There is a current law that provides that leverage for us to be able to do that. Number two is the technical complexities associated with mobile number portability. Have you interrogated them? Number three is related to the demand side of the service, which requires creating awareness within the user community. Last but not least is the issue of service provider competition amongst the industrial actors; the telecom companies. Finally, Mr Speaker, this is a motion that can be extended to international mobile number portability within the East African Community, Africa and globally. Thank you.

16588 THE CONTRACT FARMING BILL, 2023 to replace aged machinery and upgrade technologies to increase the value of farmers’ green leaf; 8. The Government supports investments in product diversification and marketing of new tea products; 9. The Government creates and guarantees markets for farmers to sell green leaf; 10. The Government supports cottage tea processing units to supplement big factories; 11. The Government provides a pruning grant of Shs 5 billion to support the pruning of 30 per cent of tea out growers’ gardens; 12. The Government provides electricity to tea processing factories at $5 per cent per kWh as is done in industrial parks; and 13. The Government effectively intervenes to recover Uganda’s tea industry from the crisis. As I said before, 4.0 is the methodology, and we have outlined different people and groups that we interacted with, including the stakeholders in Kenya. Observation and recommendations. (a) Performance of Uganda’s Tea on the International Market The committee observed that the performance of Uganda’s Tea at the international market through the Mombasa Tea Auction is affected by various factors, including: (1) The Quality of Uganda’s Tea The committee established that the sale of Uganda’s tea at the international market is at the Mombasa Tea Auction, which is the largest Tea Auction Centre in the world. The tea is sold through an online auction system, which is open to all trading parties, and prices are determined based on quality and not country of origin. All teas compete at the same level, and the prices are determined based on the quality of the tea. The committee provided a table, and you can see Kenya, Uganda, Burundi, and Tanzania. On that table, you can see that countries like Rwanda, with few Tea growers, fetch the highest price based on the online transaction and sampling that is done there at the auction. The committee was informed that the quality of Tea is established through a sampling process, and it is through this process that the quality of Uganda’s Tea has been proved to be very poor and therefore not competitive at the international market compared to other Teas in the market like we saw in the schedule. The committee learned from the study conducted by Economic Policy Research in Uganda that teas are classified and priced based on qualities such as strength, aroma, liquor, and appearance. Whereas most Kenyan teas are classified as medium to best, most of Uganda’s teas are classified as plainers. This directly speaks to the price, where the better quality Kenyan tea and that from other countries, as you saw, attract higher prices than the poorer quality teas. The committee discovered that the poorer quality teas, for instance, from Uganda, are popularly referred to as price reducers as opposed to premium brand teas, for instance, those from Rwanda, which attract internationally competitive prices. The committee observed that the number of factors that are responsible for tea’s poor quality include the following: 1. The lack of affordable quality fertiliser on the market The lack of affordable quality fertiliser directly affects the quality of tea picked from the farm on the producer. The committee noted, for instance, that the Kenya government subsidises fertilisers for farmers by about 30 per cent, making it affordable and accessible to SECTORAL COMMITTEE REPORT [Mr Edakasi]

16591 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 4 MARCH 2025 consumption is 83 per cent of all tea produced in the country. Recommendations a) The committee recommends that the Government should invest in diversifying the tea market to reduce over-dependence on foreign markets by, for instance, investing in value addition, product diversification like beer, soap, oils; venturing into other markets like Sudan and DRC. Uganda currently produces predominantly Crushed Tear Curl (CTC) black tea. Therefore, the Government should consider investing in research for the production of other varieties like orthodox and green teas, which fetch better prices on the international tea market; b) The Government should leverage platforms like the Africa Continental Free Trade Area to expand Uganda’s intra- Africa trade on tea; c) The Government should invest in the promotion of tea consumption in the country to boost domestic consumption; and d) The Government should invest in research, development and promotion of various local tea types and blends. 3. Tea barriers The committee noted that whereas Uganda’s tea, through the Mombasa Tea Auction, is mostly for export, it is not treated like other teas. The tea pays VAT, it pays a custom bond of 2.5 per cent paid at the border, and it pays a warehouse bond. The committee noted that the imposition and expiration of these bonds before the tea is released to the buyer is an added cost and takes time, which delays the transactional time for Uganda’s tea, while teas from countries like Kenya are zero-rated and easily traded and exported by buyers. The Value Added Tax Act of Kenya has Kenya tea for export or auction as a zero-rated commodity. The committee further noted that Mombasa County in Kenya has introduced an agricultural process which covers all teas distilled from Mombasa at the rate of Kenya Shs 7,000 per truck of seven tons and above. This poses an extra charge on the Ugandan teas. Recommendations The committee recommends as follows: 1. The government should ensure tea for export is a zero-rated good, which should encourage local consumption of tea. This reduces the quantities at the auction, and may, in turn, drive the auction prices up; 2. The government should engage in bilateral agreements with the Kenya Government to address tea barriers; 3. The government should support infrastructure development, including railways connectivity with Kenya, which would considerably reduce the related costs of logistics; 4. The government should standardise power tariffs at $5 cents per kilowatt to tea factories as it is done to other industrial parks to reduce the cost of production and ultimately the cost of tea on the local market to enhance domestic consumption; 5. The government should increase its participation and that of the Uganda tea stakeholders in the EATTA activities and other stakeholder engagements to ensure the visibility and competitiveness of Ugandan tea; 6. The Government should invest in marketing and blending Uganda tea as “Uganda Tea”; 7. The Ministry for Trade should offer a certificate of origin for Ugandan tea to give it tax-free access to other international markets besides the market provided by the Mombasa auction. This would provide a viable alternative market for Uganda tea. Currently, there is only an

Thank you, Mr Speaker. I would like to thank the presenter for the excellent report. Honourable minister, the Leader of government Business now, the signals are very clear that we in Government must begin to put priorities on the kind of agricultural produce, which would pay attention to and invest money and tea is one of them. I come from a formerly tobacco and cotton growing area but in my travels around this country, tea estates are some of the most beautiful sceneries in this country. How come we are producing poor quality tea, yet the sceneries are so beautiful? Honourable minister, our tea is sold in the Mombasa auction, and it is all exported as Kenyan tea, not even Ugandan tea anymore. What fights are we putting into making sure it is Ugandan tea, hence the branding that people are asking for? The report talks about fertilisers. Hon. Opendi’s area, Sukulu, has vast deposits of fertilisers. We have been talking about phosphorus since kingdom come. There is another mineral in the Mbale area called the vermiculite. That mineral has the advantage of water retention in the soil. It would help a lot of crops around this country. What are we doing about it? Lastly, the issue of value addition. We are establishing several industrial parks but none of them are using any of our raw material - (Member timed out.)

When you go to Mbale Industrial Park, you notice that there is no single raw material input in those factories. I have been to Kapeeka; the Chinese are sewing textile material, school bags, and making shoes all with imported material. Even their Goodwill tiles; no raw material is from us. Our country’s base is agriculture. All these investors we are attracting, their first priority should be agro-processing and tea should be one of those key areas that can market this country. Thank you.

Thank you, Madam Speaker. I thank the minister and also the shadow minister for the minority report or response to the statement. When the lower secondary curriculum was being rolled out, at that time, there was a concept of a Directorate of Industrial Training (DIT) certification. The curriculum indicated that at Grade 2, which is Form 2, a child will be able to get a certificate from the Directorate of Industrial Training on the vocational side of education. I am surprised by the minister’s statement. We do not know when the ministry abandoned that. What happened or is it in the continuous assessment? How does it add to the general results for a student? We need to know that. Madam Speaker, I am very concerned because Hon. Dr Kaducu is the minister in charge the primary education. When we are discussing the curriculum, it is a very important subject for this country. I expected the substantive minister for higher education to be here because you can understand these issues better when you even see the demeanor of those who are giving the submission. It looks like the ministry has many ministers, but the one in charge of secondary school education has to be here. Finally, this curriculum is new and I expect – (Member timed out.)

16350 MINISTERIAL STATEMENTS The first issue is on the definition. His Excellency the President would like us to reconsider the words “arbitration” and “adjudication”. Adjudication is a legal word that is majorly used by judicial officers, and His Excellency the President felt that we should remove the word “adjudication” because – here, we were saying Labour Officers, under the Act, are the first court of instance for labour-related disputes between the employer and employees. The two words that we had given for the purpose of the power of the Labour Officer is to “adjudicate” and “arbitrate”. However, the President is saying the power of adjudication should remain with judicial officers and we retain the power of arbitration with the Labour Officers. That is the first issue – His Excellency the President feels that we narrow the power to arbitration only. The second issue is the casualisation of workers. In the Bill, Clause 6, which proposed Section 34A(2), provided that when a casual employee works with an employer for six months, it becomes mandatory for his employment terms to be transitioned or converted from a casual labourer to a permanent one, without any condition, without any assessment and without any criteria. His Excellency the President gave an example that in Karuma Hydropower, we had over 5,000 casual workers and those positions were not anywhere in the structure of the hydropower plant construction. He also gave an example of Tian Tang Industrial Park, where you have over 2,000 casual workers who come on a daily basis, and they work and go away. You cannot accommodate 2,000 casual workers in the structure of the organisation. Therefore, if you say that after six months, it is automatic and compulsory that you transition a casual worker to a permanent worker, first, you are violating their right. This is because everybody has a right to consent if they want that form of employment or not. Secondly, all the employers have the right to also decline, based on the assessment of the workers and the availability of the positions. Thirdly, international law also requires that there are certain criteria and procedures you follow when you are converting an employee from casual to permanent. Therefore, His Excellency the President guided that we should delete the provision that makes it compulsory that immediately after the six months lapse, the person compulsorily becomes a permanent employee. The other issue which His Excellency returned is the definition of “foreign recruitment agency”. In the Bill, which was sent to him, we were defining “foreign recruitment agency” to be an agency that has been accredited by the Ministry of Gender, Labour and Social Development. However, under international law, the Ministry of Gender, Labour and Social Development does not have jurisdiction to go and accredit a foreign agency in another country. We cannot go to the UAE, Qatar, Saudi Arabia or London and accredit a foreign recruitment agency. So, His Excellency the President guided that we return it and say that the accreditation be done by the Ugandan Mission responsible in that particular country, so that the employees here and the companies here can link up with our embassy that has vetted and accredited those foreign employment agencies. Those are the areas and the rationale for returning the Bill.

Madam Chairper - son, Clause 4; Amendment of Section 13 of the principal Act. Clause 4 is substituted with the following- “4. Amendment of Section 13 of the principal Act Section 13 of the principal Act is amended in sub-section (1)(a), by repealing the word, “arbitration”. The justification is: 1. To reinstate adjudication as one of the methods that a Labour Officer, who is the first point of contact in a labour dispute, to apply in settling a labour dispute. 2. To ensure proper case management of matters in the Industrial Court by reducing on the referrals made to it under Section 4(1) of the Labour (Arbitration and Settlement) Act 227. 3. The amendment is in line with the recommendations of HE the President.

Thank you, Madam Speaker. The fundamental question about this exemption of Bujagali should be on how it is going to lower the end-user electricity tariff. Already, the generation tariff by Bujagali has threatened to go up to almost US cents 10 and the extra-large industrial consumers will be up in arms because they were only waiting for this to happen.

Honourable Minister of Gender, Labour and Social Development, would you move a motion? THE MINISTER OF STATE FOR GENDER, LABOUR AND SOCIAL DEVELOPMENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) (Ms Esther Anyakun): Madam Speaker, the Occupational Safety and Health (Amendment) Bill, 2023 was read for the first time on 9 January 2024 and referred to the Committee on Gender, Labour and Social Development in accordance with Rule 129 (1) of the Rules of Procedure of Parliament. The Bill before you was drafted within the approved policy context of employment, namely, the National Development Plan III through the human capital development programme, objectives of improving population health, safety, and management in order to reduce workplace injuries, incidents, and health hazards.

16166 THE OCCUPA TION A L S A FETY A ND HEALTH ( A MENDMENT) B ILL, 2 0 2 3 6. The Platform for Labour Action; 7. The Uganda Small-Scale Industries Association; and 8. The Safety and Health Association of Uganda. Then we also met Dr Ekwaro Obuku as an individual. 6.2 We reviewed documents like the Constitution of the Republic of Uganda, The Occupational Safety and Health Act, 2006, and The ILO Convention, 155. 6.3 We also had a field visit, where we visited Land Industries Uganda, Sino- Uganda Mbale Industrial Park, and Tembo Steel Uganda Limited. We also had a benchmarking visit. The committee sent a delegation for a benchmarking visit to Nairobi, Kenya, coordinated by Kenya’s Central Organisation of Trade Unions. The delegation held meetings with staff of the Directorate of Occupational Safety and Health Services in the Ministry of Gender and Social Protection. The report has been laid on the Table. 7.0 General observations and recommenda - tions: 7.1 Limited scope of the Bill in addressing the defects in the current OSH law. The committee observed that whereas according to the memorandum of the Bill, the Bill intends to expand the scope of the application of the OSH law and provide for the changes at the workplace arising from the new dynamics and rapidly evolving sectors such as telecommunication and extractive industry, the Bill does not effectively address this defect. For instance, the committee observed that the submissions of the Ministry of Gender, Labour and Social Development; Federation of Uganda Employers; Uganda National Association of the Community and Occupational Health, that whereas the Bill sought to provide a proposal on the new changes arising at the workplace from the new work dynamics, like new hazards in the telecommunications and extractive industries, the Bill did not provide for internationally-recognised OSH standards and practices, like the obligations of an employer to call out safety and health risk assessment and health surveillance plans which evaluate health related hazards at the workplace and monitor the safety and health of workers. Secondly, the Ministry of Gender, Labour and Social Development and Uganda’s small- scale industries informed the committee of the need to regulate OSH practitioners, who are currently not being licensed under any law, and as a result, there is a lack of standardisation of OSH assessments and reports done at the workplaces. In addition, the Federation of Uganda Employers noted that the current provision of first aid was archaic and did not provide for internationally-recognised practices like an employer to put in place a first aid assessment plan. The committee recommends that the additional proposals should be adopted to form part of the Bill to enrich the intention of the Bill. 7.2 Compliance with occupational safety and health standards by enterprises The committee assessed occupational safety and health status in selected factories during the consideration of the Bill and observed that whereas certain workplaces had put in place safety and health measures for their workers, in others, there were still gaps that needed to be addressed. The committee recommends that the Ministry of Gender, Labour and Social Development regularly follow up on issues of compliance and effective implementation of occupational safety and health laws and measures in all workplaces. 7.3 Absence of occupational health services for employees at the workplace The committee observed that the current law does not have provisions obligating the employer to provide occupational health services for his

Madam Speaker, in the report, there are specific observations and recommendations but they touch on the amendments. Reading them would mean doing it twice because there is already one. In conclusion, currently, there is a big work force due to high economic growth, increased industrial developments and new technologies in the country. This has also led to and increased new risks, challenges, hazards that affect the safety and health of workers at the workplaces. The amendment of the current Occupational Safety and Health Act, 2006 seeks to strengthen safety and health measures and expand the application of the law. The committee recommends that The Occupational Safety and Health (Amendment) Bill, 2023, be passed into law subject to the following proposed Amendment. I beg to report.

Yesterday but one, a retired Uganda People’s Defence Forces (UPDF) officer told me that he was recalled to service and they were meant to go to Somalia between 2020 and 2022. Unfortunately, along Tirinyi Road, the truck got involved in an accident. Many of them got injured. He was unfortunate because his arm got under the truck, which was rolling on the tarmac and it was nearly cut off. However, by God’s grace, doctors managed the situation. Today, he cannot even lift up a cup of water using that hand. This man was given Shs 3 million but, remember, he can no longer do any work that is meaningful. I have his document that I am going to submit to you after this. Madam Speaker, the real issue that I want to bring out is that, in this report, I have not heard from the committee as to how many of these people – who suffered from these injustices of occupational nature – they have heard from. They are the ones who can tell you the real story. How many of them came before this committee so that they could tell the suffering that they have gone through? I have also heard from a young girl who worked in an industrial area, that they have decided to lock her out. The Indians do not want to see her within their premises. Did you hear from such people, so that they could give you the real story that could help you to inform what we need to do in this law? I now want to say that, one, we need to see how we can put, in this law, the aspect of ensuring that entities provide the budgets for occupational safety and health. That would be a good thing. Number two, the issue of recruitment should be a command that comes through the law. We are not just going to recommend to the ministry for gender. If we are saying that every district should recruit – and I guess this is a Government Bill. If it is not, let the Government allow that we should recruit people who are going to do this. What are the functions of the board, which is doing the occupational safety work? We should be able to do audits to see whether people are not flouting what is in the law. If they are flouting the law, we should withdraw their certificates –

Thank you, Madam Speaker. I will first answer the question about the challenges of operationalising the law. Honourable colleagues, the law focused on workplaces with not more than 20 workers. The amendment to this makes the law apply to all workplaces, and training is catered for under section 13 of the old law. On the issue of the board, we know very well that before rationalisation, there were also those other boards that were supposed to be established, but for this particular one, we did not have the money to operationalise it and the advisory is not a standing board. Therefore, due to financial implications, we have not been able to have the board in place. A Member asked about the person who suffers from injustice. The Workers Compensation Act addresses this issue. The Occupational Safety and Health (OSH) is still centralised, especially for those who are asking why it is not decentralised. OSH is still decentralised. At the moment, we are using our labour officers to handle most of the disputes affecting staff of the local governments. Also, industry staff are delegated to work with the labour officers at the district level. There was a question about the inspectors. I want to say that we have limited numbers; that is true. We know about the issue of the wage and we are currently not in position to have this but if we are given the opportunity, we will be able to have as many inspectors as possible. However, so far, we can only work with the ones we have in the major industrial regions.

Madam Chairperson, when we talk about the workplace, we tend to limit it to an industrial setting. Let us assume that you are in a medical facility and operating X-ray machines. Some of them can also be dangerous. Are they saying that this ministry can actually prescribe the training and certification required?

I put the question that clause 1 be amended as proposed. (Question put and agreed to.) Clause 1, as amended, agreed to. MOTION FOR THE HOUSE TO RESUME THE MINISTER OF STATE FOR GENDER, LABOUR AND SOCIAL DEVELOPMENT (EMPLOYMENT AND INDUSTRIAL RELATIONS) (Ms Esther Anyakun): Madam Chairperson, I beg to move that the House resumes and the Committee of the whole House reports thereto.

16203 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 12 FEBRUARY 2025 REPORT FROM THE COMMITTEE OF THE WHOLE HOUSE THE MINISTER OF STATE FOR GENDER, LABOUR AND SOCIAL DEVELOPMENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) (Ms Esther Anyakun): Madam Speaker, I beg to report that the Committee of the whole House has considered the Occupational Safety and Health (Amendment) Bill, 2023 and passed it with amendments. MOTION FOR THE ADOPTION OF THE REPORT OF THE COMMITTEE OF THE WHOLE HOUSE THE MINISTER OF STATE FOR GENDER, LABOUR, AND SOCIAL DEVELOPMENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) (Ms Esther Anyakun): Madam Speaker, I beg to move that the report to the Committee of the whole House be adopted.

I put the question that the report of the Committee of the whole House be adopted by this House. (Question put and agreed to.) Report adopted. BILLS THIRD READING THE OCCUPATIONAL SAFETY AND HEALTH (AMENDMENT) BILL, 2023 THE MINISTER OF STATE FOR GENDER, LABOUR, AND SOCIAL DEVELOPMENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) (Ms Esther Anyakun): Madam Speaker, I beg to move that “The Occupational Safety and Health (Amendment) Bill, 2023” be read the third time and do pass.

16114 STANDING COMMITTEE REPORT The Office of the Leader of the Opposition organised an oversight visit to Inspire Africa Coffee Factory in Ntungamo District. I undertook this oversight visit on 11 December 2024, together with the shadow ministers. The visit was in line with Section 6E (1) of the Administration of Parliament (Amendment) Act, 2005, which empowers the Leader of the Opposition to play the oversight role and keep the Government in check. During the Financial Year 2023/2024, the Government undertook to establish a tertiary hub for last-mile coffee value addition in Ntungamo District through the Science, Technology, and Innovation Secretariat in the Office of the President under a private partnership arrangement with the Coffee Investment Consortium Uganda and Inspire Africa Coffee, both privately registered entities. The construction of this coffee value addition facility began in October 2023 and had been projected to be completed by December 2024. We were told that the factory is expected to produce various coffee products including instant coffee, drip coffee, malt coffee, coffee energy drinks, as well as beauty cosmetics. However, since this strategic Government intervention was initiated, various stakeholders, as well as policymakers have expressed concerns with respect to the implementation arrangements. Some of these concerns include: (i) Rationale followed to establish this coffee value addition factory in Ntungamo; (ii) The selection criteria followed to procure the private investor; (iii) The reason behind the decision by the Government to support the building of a coffee factory in Ntungamo District, while not paying attention to other areas known to produce a lot of coffee in Uganda; (iv) Capital investment - the exact amount of money that the government of Uganda is injecting into this project, because that is not known yet. (v) Projected economic benefits in terms of the anticipated employment opportunities as well as export revenues. Therefore, the primary objective of this oversight visit was to further interrogate and verify all matters related to the above- mentioned concerns as elaborated briefly before. During the Financial Year 2023, the Government earmarked and allocated Shs 37 billion, which is about US$ 10 million in the national Budget to support coffee value chain development under a newly created Vote 167 in the Science, Technology and Innovation Secretariat in the Office of the President. Also, according to the annual budget estimates of the Financial Year 2024/2025, an additional Shs 75 billion was provided for in the corrigenda to the budget and approved by Parliament to support coffee value addition initiatives. To date, a total of Shs 112 billion has been appropriated by Parliament towards support for coffee value-addition initiatives. Some of these initiatives include the promotion of Uganda coffee globally through coffee trade hubs and the establishment of a tertiary hub for last mile coffee value addition in Ntungamo District, implemented by Inspire Africa Coffee, which according to Mr Nelson Tugume, the proprietor, is at an estimated cost of US$ 122 million, that is about Shs 451 billion. It is important to note that these coffee value addition initiatives are not directly implemented by the Government, but rather through partnerships, such as the Presidential Advisory Committee on Exports and Industrial Development that is chaired by Mr Odrek Rwabwogo, the Senior Presidential Advisor on Special Duties. [Mr Ssenyonyi] REPORT ON OVERSIGHT VISIT

16115 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 11 FEBRUARY 2025 There is also the Coffee Investment Consortium, a privately registered entity comprising about 21 coffee companies interested in promoting coffee production and providing value addition in the coffee value chain, and Inspire Africa Coffee, an affiliate of Inspire Africa Group, a human resource organisation initially established primarily to address the challenges of youth unemployment on the African continent. Government argues that the initiatives will significantly increase the country’s coffee export earnings through the export promotion of processed, ready-to-drink coffee instead of raw coffee beans. However, since the above- highlighted coffee value addition initiatives were earmarked and subsequently funded by the Government, various stakeholders as well as policymakers have expressed serious accountability, legal, and policy concerns with regard to the implementation arrangement of these initiatives. Therefore, it was paramount to further interrogate and verify all matters related to the implementation of these initiatives, to ascertain their feasibility and value for public funds in line with the existing legal and policy frameworks. Let me run through the areas of concern, Madam Speaker. (1) Funding and transparency queries In the financial year 2023/2024, the Government of Uganda allocated resources through the Science, Technology, and Innovation Secretariat under the Office of the President towards the establishment of a modern industrial coffee park in Rwashamire Town Council in Ntungamo District. We found that there is no memorandum of understanding between the Government of Uganda and this private entity. So, the manner in which money was extended to this entity is not clear. Madam Speaker, it is wrong for taxpayers’ money to be spent without any clearly defined binding relationship between the Government and any entity, and in this case, Inspire Africa Coffee, and no documentation whatsoever. The proprietor told us that there was a co- investment arrangement that was ongoing between the parties, that is the Government and them, but there was no clarity on whether this arrangement would result in a joint shareholding, a grant arrangement, or a bailout. We recommend, together with my colleagues, as follows: (i) The Government should come out clearly on the relationship that exists between Inspire Africa Coffee and the Government that warranted the disbursement of public funds to this private entity. (ii) Parliament should stop any further disbursements to this entity until a clear and rational memorandum of understanding is reached between the Government and this entity. (iii) The Government ought to come out with a clear procedure on how private entities can get Government support. Uganda has many young and innovative entrepreneurs who only lack funding. If the Government comes out clearly on the formalities, then more Ugandans could benefit as opposed to just a few. (2) Unfulfilled Government commitments. Uganda is currently the leading coffee exporter in Africa and the second largest coffee producer in Africa having exported 6.13 million bags in Financial Year 2023/2024, valued at over US$ 1.14 billion. In order to handle the value additional call, the Government stipulated under the National Development Plan NDP III that two modern industrial coffee factories would be established, one in Bugisu and another one in Buganda, because these are the highest coffee-growing regions in the country. These two factories were to be constructed by the end of June

15871 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 30 JANUARY 2025 was higher than the projected growth rate of 6.0 per cent. So, we achieved much better. ii. The structural transformation of the economy driven by industrialisation is not being fully realised as would have been expected but the contribution of the industrial sector to the total GDP has fundamentally changed, averaging 26 per cent from the Financial Year 2020/2021 to 2022/2023. This is so despite the Government’s injection of funds into the Uganda Development Bank (UDB) and other financial institutions because of the COVID-19 effect. iii. Despite the observed improvement in GDP growth, growth is still considerably non-inclusive, as income inequality, as measured by the Gini Coefficient, has remained rather high and unchanged. The committee recommends that, with the forecast that Uganda’s GDP is to expand by Shs 27 trillion being hinged on the ten-fold economic growth areas, it is important that this realism is shaped by adequate resource allocation to match the agro-industrialisation, tourism, and manufacturing. This intention can only be achieved with more resources to the ATMs areas. It is also important for the Government to clarify when exactly the commercial production of oil and gas is expected to commence because it is a factor in the calculation of the ten-fold growth and projections. Inflation The committee observed as follows: i) The headline and core inflation outturns of 3.2 and 3.0 per cent, respectively, are in the projected range of 3.4 and 3.0 per cent, respectively. We are comfortable there; and ii) Core inflation outturn of 3.0 per cent is considerably lower than the policy target of 5 per cent, which is commendable. We thank the managers of the fiscal space. Private sector credit Mr Speaker, the growth in the private sector credit has slowed down. The average growth in credit in the private sector was 7.7 per cent in the Financial Year 2023/2024. It came down from 9.9 per cent in the Financial Year 2022/2023. This slowdown was primarily due to a decrease in the shilling-dominated lending, which grew by 9.6 per cent, down from 12.1 per cent in the previous fiscal year. Similarly, the average annual growth in foreign currency-denominated loans declined to 3.2 from 4.7 per cent in the previous year. Currently, other depository corporations’ Private Sector Credit (PSC) growth has softened, reflecting the impact of increased Government borrowing, probably crowding out the private sector, which constrained private sector access to credit. Observations The committee observed that the slowdown in the private sector credit could suggest looming economic uncertainties. It could also suggest that high lending rates, partly as a result of the Government’s increased borrowing from the domestic sector has led to high costs of doing business and constrained the private sector to borrow from the same space. In the external sector, Uganda’s recorded overall balance of payments position deficit of $1,155.4 million is a deterioration from that of $50.4 million recorded in the Financial Year 2022/2023. The deterioration was largely attributed to the 8.2 per cent expansion in the current account deficit to $4,174.7 million due to the deterioration in all its sub-accounts except the merchandise trade account. Foreign Direct Investment (FDI) FDI inflows in the Financial Year 2023/2024 reached a high record of $3,034.11 million, from $2,950.6 million, recorded in the Financial

15872 THE NATIONAL BUDGET FRAMEWORK PAPER FOR THE FY 2025/2026 - 2029/2030 Year 2022/2023. FDI inflows have increased steadily year after year, largely reflecting the ongoing activity in the oil and gas sector and a positive business outlook for our country. International Reserves As at the end of June 2024, the stock of International Reserves stood at $3,234.03 million. The reserve cover in future months of imports (excluding oil-projected imports) was equivalent to three months. This is much lower than the 3.8 months of import cover recorded at the same time in the previous year. Observations The committee observed that a sustained Balance of Payment (BoP) deficit could spell economic challenges and vulnerabilities over the medium-term if access to external financing is not restrained amidst low foreign exchange reserves. It is, therefore, paramount that effective implementation of export-promotion and import-substitution strategies is prioritised over the medium-term as a more sustainable way of building foreign reserves. The committee recommends that export promotion is prioritised and agencies such as Uganda Export Promotion Board (UEPB), our diplomatic missions, and other related bodies, are financed sufficiently in this budget to promote exports in order to improve the balance of payment situation in the country and promote economic growth and employment. This can only be achieved through strategies and interventions such as: i) Focusing on a few export sectors that can be coordinated effectively using the capacity and resources available to ensure successful implementation of the export strategy; ii) Promote and spearhead the development of entire value chains for the priority export products; iii) Strengthen the institutions charged with quality surveillance and monitoring, including with relation to the manufacture, importation, and distribution of agricultural and industrial products; iv) Invest in the public infrastructure necessary for quality assurance along an entire value chain for selected priority products; and v) Encourage, through the provision of appropriate incentives, the private sector to invest in the infrastructure necessary for quality assurance along the entire value chains for the selected priority products. Public Debt Mr Speaker, on public debt, Uganda’s public debt remains sustainable over the medium- and long-term. The ratio of public debt to GDP was 46.8 per cent in the Financial Year 2023/2024. This is below the limit of the Charter for Fiscal Responsibility of 52.4 per cent. This is great. Observations The committee observed that though the debt levels as a percentage of GDP has remained stable at 46.9 per cent in the Financial Year 2023/2024, up from 47.1 per cent in the Financial Year 2022/2023, the domestic debt rose to 20.1 per cent as a percentage of GDP in the Financial Year 2023/2024, up from 18.7 per cent in the Financial Year 2022/2023. This is a growth of 17.6 per cent of domestic debt. I think that is the challenge. The sudden rapid growth in debt over the last year was a bit worrying. We, therefore, recommend that the Government should gradually scale down on domestic borrowing because it is becoming unsustainable. It is also negatively affecting private sector credit growth in the country and increasing the number of non-performing loans indirectly.

15874 THE NATIONAL BUDGET FRAMEWORK PAPER FOR THE FY 2025/2026 - 2029/2030 budget cuts, which hindered the budget and made it difficult to achieve fiscal objectives. Supplementary spending continues to undermine the credibility of annual planning and budgeting, especially considering that activities for which these expenditures are made are foreseeable. In addition, supplementary budgeting heightens macroeconomic risks. The committee recommends that the Government should limit supplementary spending to only unavoidable expenditures as the rest of these other expenditures tend to distort the budget and have continued to distort the budget. Mr Speaker, that is a very strong point and it is shown in most of the figures. Financial performance at the programme level Mr Speaker, I will let honourable members read the financial performance by activities shown there on Table 6. Let us go to the Budget Strategy that we are going to implement on page 27. Budget Strategy for Financial Year 2025/2026 Mr Speaker, the Financial Year 2025/2026 National Budget Framework Paper is the first in the implementation of the National Development Plan (NDP IV). The goal of NDP IV is higher household incomes, full monetisation of the economy, and employment for sustainable socio-economic transformation. The goal will be pursued under the theme: “Sustainable Industrialisation for Inclusive Growth, Employment, and Wealth Creation.” To concretise the gains so far achieved during the fourth National Development Plan III in NDP IV and to propel the economy of Uganda to higher levels of socio-economic transformation towards double digits, the theme for this coming financial assistance budget will be maintained as, “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation, and Market Access.” That is our theme for this coming financial year. The overall objective of the Financial Year 2025/2026 budget strategy is to strengthen economic growth drivers that underpin the restoration of the economy back to the medium- term growth path and directly contribute to the expansion of Gross Domestic Product (GDP) ten-fold from the current $53 billion to $500 billion by 2040 and double it to $1000 billion by Financial Year 2029/2030. The budget strategy for the next financial year is, therefore, based on the principles of a ten-fold growth strategy. The gains, lessons learned, and opportunities from NDP III as well as NDP IV’s new strategic direction: This demonstrates the continuity of the social- economic agenda. This strategy underscores employment creation, wealth creation, and high household income by prioritising the key enablers for accelerated growth. Mr Speaker, these are the priority areas for the budget strategy. This year’s budget strategy outlines four major key areas: i) Agro-industrialisation. With a focus on fully commercialising and formalising farming as well as undertaking strategic value addition for export; ii) Tourism development. With a focus on increasing tourism arrivals by five-fold under the current spend per tourist and length of stay strategy; iii) Mineral-based industrial development, including oil and gas. With a focus on undertaking quantification of mapped mineral deposits and their governance regime and delivering fast oil in this financial year; and iv) Science, technology and innovation. With a focus on fast-tracking the commercialisation of ongoing innovations in pathogen control and management for vaccines, diagnostics, and therapeutics. STATEMENT [Mr Achia]

15877 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 30 JANUARY 2025 Priorities and the indicative budget performance for Financial Year 2025/26 The fundamentals of the economy are there. I would like to briefly go - Agro-industrialisation is key. Tourism development is key. The proposals are there. Mineral-based industrial development, including oil and gas, is there; they are outlined. The oil and gas details are there. Science and technology - those are the activities that the Government intends to do in those areas that will inform the allocation of resources; the ATMIS. Committee observations The committee recommends that the following priorities should be included as part of the Budget Framework Paper: i) On agro-industrialisation, Mr Speaker, it is important to increase access to appropriate agricultural mechanisation and farm power tools. Because to grow and increase production, there must be mechanisation; ii) We must look at the exchange system in the country, especially specialised training to equip people and facilitate exchange workers; iii) Establish and operationalise appropriate post-harvest handling; iv) Increase market access by establishing and maintaining appropriate market infrastructure like developing and integrating the National Coffee Traceability Modules, the Geospatial Coffee Registry, and especially funding to the Uganda National Bureau of Standards; it is the one that verifies our standards and does the testing and certification. If we do not fund and improve the standards of products in this country, our agro- industrialisation is going to be constrained. Someone could even say it is going to be a challenge. Tourism The outline is there with recommendations of the committee. Tax Policy The committee observes that over the years, the domestic revenue mobilisation efforts have been hindered by the lack of a national tax policy that would form the basis for tax legislation and administration. The committee was informed that the Cabinet Memorandum on a Draft National Tax Policy was submitted to the Cabinet for consideration. We recommend that the National Tax Policy is expedited in order to inform the tax bills and proposals for the coming Financial Year 2025/2026. Mr Speaker, on part two, I think at this point I need to lay the minutes and discussions. All the discussions, minutes, documents, attachments, revisions and budget reports from all the 15 sector committees are here. The official, signed report is also here. This time around, unlike previously, in the annexes and at this policy stage level, we decided not to restrict or to start crossing the propositions and suggestions from the committees. We, therefore, decided to lift the recommendations of different committees in their entirety and make them an annex; the proposal of the committees, to the Government. So, it is up to the Government so that we do not constrain and stop the committee from making suggestions to the Government at this point. Therefore, we have lifted all the recommendations of the different committees and attached them as an annex, so it is up to the Government to consider them. However, in the discussion –

15893 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 30 JANUARY 2025 Secondly, what we must take seriously is where we are failing to have harmonisation between the NDP IV and the Budget Framework Paper – where the other one talks of Shs 90 trillion and the other talks about Shs 57 trillion. That is important because, ideally, in this process, we need to harmonise the two documents. I want to know the commitment and how we should go about it. When we remain at the current budget figure in the Budget Framework Paper – the other is talking of Shs 92 trillion – how do we harmonise and get to one common figure and ensure that we move in tandem? Thirdly, Mr Speaker, when you were presiding over one session last year, tree nursery operators came here. These are people who borrow loans and put up nurseries, but there is a public outcry: they have never been paid. So, under climate finance, can we focus on this and see how we can help to handle this matter? On human resources development, I am happy that during the last sitting, you mentioned that you went to Mbale Industrial Park, and it has caused some results. However, as workers’ representatives, we normally have challenges where quite often, machines are cutting workers in those areas. There are no remittances or collective bargaining agreements, yet Uganda is one of the constituencies of the International Labour Organisation (ILO). How I wish we could see how we could move and ensure that we have this. Still, on that aspect, how do we consider the primary school teachers and other lower cadres? Are they catered for under this human resource development fund appropriation? This is very important. These are very core issues because we find that there are already gaps between S cience and A rts teachers and other workers. So, under the human resource development fund, is there an indication that the primary school teachers will be catered for? Otherwise, going forward, I think we can move and ensure that we get better. The other disturbing aspect is when NDP is talking of Shs 2.4 trillion for agro- industrialisation – and of course, when we talk about import substitution, we can only reduce imports by actually producing and exporting through value addition. That is very important. By so doing, the committee has assured us that they are looking at aspects of research, as important. However, we find that institutions such as the National Agricultural Research Organisation (NARO) are underfunded. Even in terms of staffing, they are at below 40 per cent, yet when you talk of the PDM, these people require quality planting materials, but they pick anything and plant, under PDM, and then the returns on their investment are jeopardised. Lastly – Mr Speaker, it is good you mentioned it. Under UNBS, the solution was given. Institutions such as NDA and Uganda Wildlife Authority are using non-tax revenue to supplement their budgets. The same applies to Management Training and Advisory Centre. Why don’t we ensure that we close this gap and ensure UNBS is facilitated through such an arrangement? I beg to submit.

Thank you, Mr Speaker. I want to submit on four areas - agriculture, health, staffing levels, and the issue of programme-based budgeting. As a country, we have taken four areas to concentrate on to boost our productivity levels. Area number one is agriculture, followed by industrialisation, particularly industrial production, ICT, then services. The issue of increasing agricultural productivity goes hand in hand with agricultural mechanisation. When you analyse the National Resistance Movement (NRM) manifestos - if you start with the manifesto of 2016 and the current one of 2021, you will get to know that the Government promised to give tractors to every subcounty in this country. Since then, our district has received only one tractor. That one tractor was provided without the disks. This has remained the case since February. On the allocation to the agriculture sector - much as we look at agriculture as our priority, the allocation to this sector does not speak to the energy we put in, in terms of talking about agriculture. I think we need to revisit this and allocate more money to the agricultural sector, and also fulfil the manifesto’s objective that every subcounty must have a tractor –

Thank you, Mr Speaker. I thank the committee chairperson for the report. In the budget reading for the Financial Year 2023/2024, agro-industrialisation, tourism, and mineral development were the sectors pointed out to propel our economy to the $500 billion dollars in the target of 2040. However, indications are that in this Budget Framework Paper, all the sectors which are supposed to propel us to that area have been cut or underfunded. For example, mineral development to which we allocated Shs 46.1 billion in the previous financial year, has been allocated zero this time. Mindset change, which was allocated Shs 69.3 billion in the previous financial year, has been allocated zero, despite the problems we have with the Parish Development Model (PDM). The tourism sector which is now doing very well with receipts exceeding $1 billion, has had its budget reduced from Shs 297 billion to Shs 176 billion. If we go to the petroleum development where we are targeting to get a lot of money from oil, it was allocated Shs 835 billion in the previous financial year but zero this financial year. How are we going to achieve the target that we were moving to? Even manufacturing to which we allocated Shs 318 billion, it has been cut to Shs 226 billion. We have industrial parks, even in West Nile to which we allocated money. They are all there as skeletons. Nothing is being put in and we are cutting budgets in manufacturing. Mr Speaker, I would like to point out something a little on health. A number of honourable colleagues have spoken about the Uganda Cancer Institute, which is indeed

Honourable colleagues, I welcome you to today’s sitting. We shall be handling all matters of national importance during the Prime Minister’s Time. I received the statement from the Minister of Justice and Constitutional Affairs on the ongoing voter verification exercise, which was supposed to be presented by the Attorney- General, who, unfortunately, was called by the President and is in Mayuge. Therefore, we shall do this on Tuesday. However, the statement is ready. Next item. ADDENDUM TO THE PROPOSAL TO BORROW UP TO € 162,445,694.1 FROM THE EXPORT-IMPORT BANK OF CHINA (CEXIM) TO FINANCE THE DEVELOPMENT OF INDUSTRIAL PARKS (POWER SUPPLY TO INDUSTRIAL PARKS AND POWER TRANSMISSION LINE EXTENSION)

Let us resume from where we stopped. Minister for Finance. ADDENDUM TO THE PROPOSAL TO BORROW UP TO € 162,445,694.1 (EURO ONE HUNDRED AND SIXTY-TWO MILLION FOUR HUNDRED FORTY-FIVE THOUSAND SIX HUNDRED NINETY- FOUR ONE CENT) FROM THE EXPORT- IMPORT BANK OF CHINA (CEXIM) TO FINANCE THE DEVELOPMENT OF INDUSTRIAL PARKS (POWER SUPPLY TO INDUSTRIAL PARKS AND POWER TRANSMISSION LINE EXTENSION)

Mr Speaker, I beg to lay on the Table a proposal to borrow up to £162,445,694.1, equivalent to $178,276,661.7 from the Export-Import Bank of China, to finance the development of industrial parks, specifically power supply to industrial parks and power transmission line extension.

Honourable minister? THE MINISTER OF STATE FOR GEN - DER, LABOUR AND SOCIAL DEVELOP - MENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) (Ms Esther Anyakun): Mr Speaker, first of all, I wish you a Happy New Year. I would like my colleague to first of all thank us as a ministry, where we got the girl from and relocated her from where she was - this action was taken as soon as we got the news. Right now, the girl is in the hands of the Government and she is still on treatment. She had fractures on both legs and that is why we ensured that she is in better condition to take a flight to come back home. I will be in Riyadh on Monday and I will come back with the girl. (Applause)

Thank you, Mr Speaker. Before I comment on the report, I want to take this opportunity to thank you very much for your recent visit to Mbale City Industrial Park. It has been a few weeks since your visit and I can confirm that there has been progress, because the welfare of most of our people working there has slightly improved. One of the bridges that connects the community to the industrial park, I can confirm, was constructed – the Chinese have constructed it. The community, mainly the employees who are working around the industrial park, now has access to the park. So, thank you very much, Mr Speaker. About the report, I want to thank the chairperson and the entire committee for the very good report. One of the issues that you have noted concerns the land being prone to land grabbers, specifically in Mbale City. When you look at the land in Mbale, it is not fenced and they do not have a title. I expected that one of your recommendations would be for the Government to find ways of titling and fencing off this land to protect it from land grabbers. This should be one of the key things because when you look at one of the pictures, you have shown that one of the dogs killed a goat and if our people were not good, they would have probably sold that meat to us, the people. So, once we fence off this facility, it will prevent such scenarios or circumstances where even dogs have access to the slaughterhouse, which is quite dangerous to the community. The second issue concerns electricity that was cut off, mainly in Mbale. We need to come up with a permanent solution. When you look at most of the Government facilities, including the central markets and other facilities, they are facing challenges to do with electricity. In conclusion, now that Umeme is being taken over, the Government needs to come up with a proper plan on how to subsidise mainly electricity and water for most of these facilities to enable them to continue running effectively. Thank you very much, Mr Speaker.

15686 SECTORAL COMMITTEE REPORT Richard Wanda, the Chairman of Bugisu Parliamentary Forum - they hosted me for two days in Mbale and we did great work, where I went beyond my duty as a Deputy Speaker and engaged the proprietors of Mbale Industrial Park. We had a lot of problems and by the time we left, we had solved like 90 per cent. (Applause) We found that the workers were using nearly Shs 4,000 every day on transport from their homes to the park and back, yet these people could construct a small bridge and gate that would connect them by only 400 metres to the city. It had been a bone of contention, so we managed to engage with the proprietor and like he has said, it has now been constructed. I received many messages from the young people in Mbale. (Applause) They also wanted a showroom because the products are manufactured in Mbale, but the people come to buy them in Kampala. Mr Zhang has briefed me that he is going to put up - I think they have already started; it is under construction. He is going to put up a showroom in Mbale for all products, so that the community can benefit. The other issue was that the youth wanted to have a workshop. Let us say you have brought all these investors, but as young people who have our own small businesses, we do not have anyone to help us. When we engaged with him, he agreed to build a workshop for them on one acre, equip it for free and they use it. Also the facilitation – (Hon. Masaba rose_) - Yes?

15553 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 9 JANUARY 2025 The committee recommends that the Ministry of Water and Environment should scale up its efforts in the project implementation methodology in order to adequately and timely execute the projects and realise value for money. Need to reduce the cost of water tariff The committee noted that the cost of water per unit is Shs 5,000 at the level of domestic consumption. It was also noted that whereas National Water and Sewerage Corporation charges Shs 25 per 20 litre jerry can for community/kiosks, some vendors charge the end user up to Shs 200 thus, further making water unaffordable for the ordinary person, limiting consumption, which in turn affects revenues of the agency. This cost is prohibitive to the majority urban poor. National Water and Sewerage Corporation informed the committee that the high cost of Shs 5,000 is brought by high cost of electricity and other maintenance costs incurred by the agency. They also informed the committee that the cost is likely to come down since power tariffs are reducing. The committee recommends that: i) Water tariffs should be reduced so that it can be easily made affordable by all, regardless of socio-economic categories. (Applause) ii) National Water and Sewerage Corporation should come up with a circular regarding the price of water for vendors, beyond which they should not charge the ordinary customer. (Applause) iii) Punitive measures should be put in place for those who do not adhere to this directive. Need for enhanced water supply in the country The committee notes that the high growth of the country’s urban population, in addition to rapid urbanisation of the rural areas has increased demand for domestic, industrial and water for agriculture. However, several challenges are still faced in the water sector, such as scarcity, climate change and water quality. The increasing rate of waste water production with inadequate wastewater treatment resources and systems often lead to affluent discharge into water systems. This does not only lead to the degradation of downstream ecosystems but also causes healthy problems to humans and the environment. The committee recommends that the Government should prioritise budgets for the water sector as guided by Agenda 2030, Sustainable Development Goal number Six, in order to address water and sanitation demands for the increasing population. Need for inter-sectoral coordination The committee noted the continued destruction of the road infrastructure by utility service providers, such as telecommunication companies, electricity, and national water itself. This destruction increases the maintenance costs of the service lines. Recommendation The Ministry of Works and Transport should spearhead coordination of activities of all utility service providers and incorporate service lines in all new road infrastructure designs to mitigate future destruction. Conclusion The committee recommends that the proposal by Government to borrow up to Euro 45 million from the Agence Française de Développement , additional support to Kampala Water - Lake Victoria Water and Sanitation Project at a revised interest rate of six months Euribor, that is, -1.74 per cent as at 25 September, 2024; be approved subject recommendations herein. I beg to move.

Colleagues, we still have challenges in land fragmentation, land ownership, and there are distortions that constrain production. I think Government, together with the House, will address those issues. Despite existence of abundant resources of land, minerals, and tourist attractions, there is limited value addition. Uganda’s leading exports in 2023/2024 were in low-value commodities like coffee, maize, fish and its products, and tea. Regarding coffee, 6.12 million 60-kilogramme bags were exported, fetching only $1,143.8 million at a mere $3.1 per kilogramme. If we added value, we would have gotten more money. Those are the issues making us not earn money. Therefore, we should prioritise value addition. High transportation and electricity costs constrict the country’s economic growth and competitiveness, the tariffs and so on. Another challenge we are facing is the high cost of capital. Interest rates in this country are very high. You borrow money to do business; you borrow money to do development but the interest rates are very high, including the moneylenders who are siphoning all our people’s money. Uganda is also heavily reliant on rain-fed agriculture with limited irrigation, limited fertilizer and limited mechanisation. We have to invest so that we can earn more. Investment and use of science, technology and innovation is still low. We are still doing things mechanically. We need a lot of research, investment in research and knowledge growth so that we innovate a number of products that can earn us more money. Domestic revenue generation is still inadequate to finance our development. We now mitigate by borrowing and so on, where Hon. Ikojo has been begging for approvals. There is also indiscipline where we undermine effective planning and budget implementation and we fail to realise the results. Our plans are prepared and left to the dust. Implementation goes a different direction. That is why we must all pay a keen eye so that when we plan, we plan properly, and we must stick to our plans. That is what we are going to emphasise for all. Industrial parks and free zones are inadequately developed to drive value addition and the industrialisation agenda. Water, roads, electricity, internet connectivity are very limited in our industrial parks. MOTION FOR A RESOLUTION

15566 MOTION FOR A RESOLUTION to effectively monitor implementation of the National Development Plan. In addition, the committee recommends that the Office of the Auditor-General carries out annual special audit on the implementation of the NDP IV and report to Parliament. The other observation is realignment of the ruling party manifesto with National Development Plan. The committee observed that after approval of NDP IV, the ruling party manifesto in 2026 may be inconsistent to the NDP IV’s strategic controls and direction. This inconsistency may hinder implementation of the plan, regardless of which government takes power in 2026. Therefore, the committee recommends that in order to ensure consistency of the ruling party manifesto and the National Development Plan, the NPA should conduct annual and mid-term reviews of the NDP IV as per Regulation 10(2) of the NPA Regulations, 2018. The other observation is slow implementation of public investment projects. The committee observes that all growth strategies of the NDPs are anchored on public investments, especially in their core projects/ high impact projects, and other attendant projects. However, project delays are still a challenge, in particular for externally funded projects. Over the last six years, externally financed projects have spent only 44 per cent of their allocated budgets over the same period. With delays in the acquisition of rights of way such as land and compensation and all resettlement for project affected persons, procurement delays, which in turn affect project implementation, increase in direct costs of non-performing projects, including commitment fees, insufficient real- time monitoring of projects, poor sequencing of projects, insufficient feasibility, and appraisal studies of projects cited as the main reasons for the under execution. The committee recommends the following five things: a) The NDP IV should focus on the incomplete strategic projects carried out by the NDP III. These projects are largely in the railway, roads, energy, and oil and gas sectors, basing on plans to develop industrial ecosystems around iron ore, oil and gas, and phosphates, there is a need to continue investing strategically in electricity power generation. b) There is a need to undertake project due diligence through rigorous feasibility assessments to gauge the viability of government projects. This will ensure that projects are well structured, commercially viable, and will provide value for money. c) Government undertakes real-time monitoring of development projects annually and biannually. d) Government fast-tracks the development of a policy on the acquisition of the right of way and corridors for the development of infrastructure to ease planning and avoid delays in infrastructure development. e) Finally, the government sequences projects with priority given to those generating a bigger growth dividend. One of the other observations the committee made was on the Parish Development Model as a flagship intervention. The committee observes that the goal of the NDP IV will be achieved through full monetisation of the economy, accelerated by full operationalisation of the Parish Development Model (PDM), Emyooga , and other wealth creation funds. The PDM is a government last mile delivery approach to improve citizens’ livelihoods and well-being. From this, the committee observes that: (i) Parishes are not homogeneous. They vary in population density, geographical size,

15570 MOTION FOR A RESOLUTION The committee recommends as follows: a) The Government should set aside adequate resources in the domestic arrears budget to clear the current stock of domestic arrears over the medium term; b) The Government should consider new approaches to stop the accumulation of new domestic arrears and sanctions should be enforced to penalise errant accounting officers, as per the requirements in the PFMA Act. The other observation is on the effectiveness of industrialisation strategy. Honourable colleagues, I am about to finish. The committee observes that the theme of the national planning framework has consistently been “Sustainable Industrialisation for Inclusive Growth, Employment and Wealth Creation”. However, the contribution of the industrial sector in total GDP has not fundamentally changed overtime, averaging 26.8 per cent in 2020/2021 to 2021/2022. The ratio of manufactured exports to total exports has also stagnated at about 13.5 per cent for the first two years of NDP III. The committee further observed that structural information of the economy driven by industrialisation was not realised during the first two years of the implementation of the NDP III adequately. The committee recommends as follows: a) There should be deliberate effort by the Government to fast-track the industrialisation agenda. Development of industrial parks should be at the centre of promoting industrialisation. The Government should focus on ensuring functionality of all the industrial parks with adequate provision of electricity, water, interconnection roads, among others; b) Based on plans to develop an industrial ecosystem around iron ore, oil and gas and phosphates, there is a need to continue investing strategically in electricity power generation. We have not yet reached there. This will minimise the cost of transmission and distribution of power industrial clusters; c) There should be deliberate effort by the Government to fast-track the industrial - isation agenda through establishment of specialised financial institutions targeting small- and medium-scale indigenous-run industries. In this way, Ugandans will be participants, not observers, in the industri - alisation drive; d) For agro-industrialisation to be realised, there is a need to holistically champion this strategy through large-scale programmes such as the Parish Development Model, private sector development programmes centred on production zones and setting up a conducive environment for private sector participation in this industrialisation process; and e) Develop Public-Private Partnership strate - gies to enhance financing of the industri - alisation agenda because the Government cannot do it alone. Legislation, oversight and representation programme The committee observes that paragraph 525 of the proposed NDP IV does not reflect the current status of the Legislature programme, for instance, reference made to nonexistent institutions and inaccurate human resource information. The committee observed that the book needs some cleaning. The committee recommends that that paragraph, particularly, should be deleted because it is not up to date – it should be expunged. Alignment of the administration of justice programme and the governance and security programme The committee observed that some interventions under the governance and

Okay. The industrial courts, LDC interventions that contribute to justice service delivery, court-related forensic analysis interventions, LC courts, DPP interventions that contribute to justice service delivery are more directly related to the administration of justice programme. Therefore, the committee recommends that all the interventions currently under the governance and security programme that relate to the enhancement of equitable access to justice for social economic development and the strengthening of justice service delivery systems should be transferred to the administration of justice programme. It is an issue of alignment of the 18 programmes, as highlighted above. Regionally balanced development The committee observes that although commendable progress has been registered in reducing poverty, regional disparities have, however, remained and increased vulnerabilities across regions. The chairman had mentioned it, so, I will not read it. The committee recommends that the Government prioritises the development and implementation of regional development plans, including comprehensive regional physical plans, to ensure balanced economic growth, equitable service delivery, and equitable resource distribution. I would have asked for an investment map, but the committee did not allow. Promotion of games and sports The committee observes that the National Development Plan (NDP) IV provides for several interventions for promoting games and sports but does not provide interventions relating to physical exercises for health reasons, amateur sports for mass participation and professional sports for commercial benefit. In addition, the committee observes that the NDP IV high-impact projects focuses only on the establishment of four regional sports stadia and 14 district sports grounds in the traditional sub-regions of Uganda. These do include international and national stadia. Further, the committee observes that the desired high-level programme results by the year 2029- 2030 provide insufficient information in regard to niche sports rankings. This hinders the effective monitoring of the high-level program results. Therefore, the committee recommends two interventions. a. That the NDP IV is amended to incorporate interventions for physical exercises for health reasons, amateur sports for mass participation and professional sports for commercial benefit. b. NDP IV high-impact projects should be amended to include three international stadia, Namboole, Hoima, and Akii- Bua, 10 KCCA artificial surface grounds (Rubaga, Kawempe, Makindye, Nakawa and Central Divisions) and 15 national stadia (Arua, Moroto, Soroti, Mbale, Tororo, Iganga, Jinja, Lugazi, Luwero, Masaka, Mbarara, Ntungamo, Kabale, Kasese and Fort Portal. Railway master plan The committee observed that the NDP IV mentions that in order to lower the cost of doing business, the focus will be on improving the transport infrastructure. However, the NDP IV is silent on the need to develop a railway

15498 STANDING COMMITTEE REPORT It is also consistent with the Charter of Fiscal Responsibility and satisfies the requirements of gender equity responsiveness and balanced development. It is in two parts; Part 1 highlights the economic growth strategy, the medium-term macro-economic forecasts, the medium-term fiscal framework and forecast, compliance with the Charter of Fiscal Responsibility, the resource envelope for the Financial Year 2025/26, the policy measures, the Medium-Term Expenditure Framework for the Financial Year 2025/2026 and the fiscal risks and mitigation measures. Part 2 provides details of the proposed programme plans and interventions. Mr Speaker, allow me to reaffirm to the House that Uganda’s economy has fully recovered and is on the right growth path, driven by investments in the 10-fold economic growth areas. Currently, there is high business and investment optimism in Uganda, with inflation contained at 2.9 per cent, way below the policy target of 5 per cent. Mr Speaker, in line with the 10-fold growth strategy, the Fourth National Development Plan, and the NRM Manifesto, and the guidance by His Excellency the President, the Financial Year 2025/2026 budget will continue to prioritise the following economic fundamentals; Peace and security, roads, railways, electricity, irrigation, reducing the cost of capital, human capital development in health, education, water, international relations and disaster management. These will be driven by the full monetisation of the economy implemented through the ATMs. These are agro-industrialisation, tourism, mineral-based industrial development, science, technology and innovations, including information, communication technology, as well as the creative arts industry.

Thank you, Madam Speaker. Thank you, Honourable col - leagues, for the issues you have raised about UNBS. UNBS has a mandate to ensure the safety of the lives of Ugandans but also ensure the standards of the products that we produce in the country so that they can meet interna - tional standards and access the markets both domestically and internationally. As a result of the expansion of our industrial sector - as you recall, the industrial sector has grown. We are now contributing 27.4 per cent to our national Gross Domestic Product (GDP) with manufacturing alone contributing 16.5 per cent. It has grown from 85 factories in 1986 to now 9,400 factories. This requires capacity to monitor all these activities and ensure that the products are inspected and the standards are kept. Therefore, the length of time that we take should be an average of two months. We shall get the report and circulate it to all Members of Parliament to see how many have applied and how long we have taken to certify them. Some of the reasons they take long is because some companies do not give information in time and yet we must ensure the safety of these products. Therefore, I am happy that this afternoon there seems to be a consensus coming out of members of Parliament that UNBS needs to be supported and be given enough resources to recruit enough people for enforcement and certification. On the second point of harmonisation of UNBS laws and the National Drug Authority (NDA), we proposed an amendment to the National Drug Policy and Authority Act. We are working together with the Ministry of Health. Actually, tomorrow we have a consultative meeting to harmonise and see which products are handled by UNBS, which ones are going to be handled by NDA. The Attorney-General is providing guidance on this matter; on why we are still applying the External Trade Act vis-a-vis the new Act that was enacted. As far as we understand, the External Trade Act has never been repealed. Therefore, it is still a law that is applied in Uganda. Madam Speaker, we will be ready – (Interruption)

Thank you very much, Madam Speaker. Madam Speaker, the Technical and Vocational Education and Training Bill, 2024 was presented, as the Speaker says, in this August House on Tuesday, 26 November 2024, for the First Reading and consideration by Parliament. This Bill seeks to establish an employer- led Technical and Vocational Education and Training (TVET) system that is functional, effective, efficient, to meet the demands and priorities of the labour market. The Bill proposes harmonisation, synchroni - sation, and merger of the functions of various TVET assessment bodies into one homoge - neous function, to reduce costs and ease of co - ordination, in line with the Cabinet’s Directive on Rationalisation of Government Agencies, Commissions, Authorities, and Public Expen - diture (RAPEX). Specifically, it proposes the transition and merger of: a. Uganda Business and Technical Examinations Board, (UBTEB) and the Directorate of Industrial Training, into the Uganda Vocational and Technical Assessment Board. b. Uganda Allied Health Examinations Board and Ugandan Nurses and Midwives Examinations Board, into the Health Professionals Assessment Board. I submit, Madam Speaker.

15426 THE TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING BILL, 2024 h. To provide for the establishment of a TVET Assessment Board; i. To provide for the establishment and management of Skills Development Fund. Methodology 3.1 We used desk research. The committee reviewed the various legislations, and these included; a. The Constitution of the Republic of Uganda, 1995; b. The Business Technical, Vocational Education and Training Act. Cap. 244; c. The National Curriculum Development Centre Act, Cap. 254; d. The Universities and Other Tertiary Institutions Act, Cap 262. The committee reviewed TVET policy 2019 meetings. The committee invited eight stakeholders, held meetings and received memoranda from them. They include: a) The Minister of Education and Sports; b) The Uganda Business and Technical Examinations Board (UBTEB); c) The Uganda Manufacturers Association (UMA); d) The Uganda Nurses and Midwives Examinations Board (UNMEB); e) The Uganda Allied Health Examinations Board (UAHEB); f) The Directorate of Industrial Training (DIT); g) The Federation of Uganda Employers (FUE); and h) The Management Training and Advisory Centre (MTAC). Findings In the objectives of the Act, clause 3 of the Bill provides for objectives of the Act as spelt out earlier in this report. Committee Observation The committee observed that the aspect of licensing of TVET trainers was not provided for under clause 3(f) of the Bill. Recommendation The committee recommends that clause 3(f) should provide for the aspect of licensing of TVET trainers. 4.2 The Technical and Vocational Training TVET Council Clause 4 of the Bill establishes the Technical and Vocational Education and Training (TVET) Council and a composition of the council is provided for under clause 8. The Bill proposes that council shall be composed of a chairperson and six members and that 66 per cent of the council membership shall be employers. The Uganda Manufacturers Association (UMA), in its interaction with the committee, proposed that the Bill should specify that one of the employers proposed in the council membership should be a manufacturer, since they are the biggest consumers of TVET services. Committee observations The committee perused paragraph 7.2.1 of the TVET policy and found that one of the policy objectives of the formation of a TVET council as a regulatory body, representing the demand side of the TVET policy, with two-thirds, that is 66 per cent of the council members being employers from the industry. The policy further states that the institutional mandate for employers, through the TVET Council, will be to regulate TVET through establishment of standards, qualifications, registration, and accreditation systems for institutions/ providers, programs, and trainers.

15431 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 3 DECEMBER 2024 tenure should tally with the tenure of the TVET Council. Recommendation The committee recommends that clause 83 of the Bill be amended to provide for the tenure of members of the TVET Assessment Board as four years. 4.11 Deputy Executive Secretary of the TVET Assessment Board Clause 92 of the Bill provides for the Deputy Executive Secretary of the TVET Assessment Board and the clause provides for two deputies, one of the TVET assessment and another for TVET development and management of the curricula. In its interaction with the committee, UNMEB proposed to the committee that the position for two deputies be adjusted to deputy executive secretary responsible for nursing and midwifery and another responsible for allied health professionals. Committee observations The committee observes that since the Uganda health professionals board is merging the two bodies; the Uganda Allied Health Examinations Board and the Uganda Nurses and Midwife Examinations Board, specifying the two deputies is necessary. The committee further observes that the deputy executive secretary of TVET, Development and Management of Curricula, under the Uganda Vocational and Technical Assessment Board, should be added as a role of Finance and Administration to ensure that the function of the Finance and Administration is effectively handled. Recommendation Clause 92 of the Bill be amended to specify the two deputy executive secretaries of the Uganda Health Professionals Board and add the role of finance and administration to the deputy executive director in charge of TVET development and management of curricula. 4.12 Transitional provisions in the Bill Clause 126 of the Bill provides for transition applicable to the TVET Assessment Board. Clause 126(5) of the Bill provides that the staff in employment of Uganda Allied Health Examinations Board and the Uganda Nurses and Midwifery Examinations Board in existence, immediately before the commencement of this Act, other than the Board members shall be merged and continue in the employment of the Health Professionals Assessment Board as the Minister may determine and subject to the availability of vacancies. Clause 128(2) of the Bill provides that the Uganda Vocational and Technical Assessment Board may on the effective date of its operations, accept into its employment a person who, immediately before the commencement of this Act, was an employee of the Directorate of Industrial Training on permanent and pensionable terms and who was given an option to serve by the board and be opted to serve as an employee of the board subject to the availability of vacancies. Committee observations The committee observes that clause 126(5) leaves the transition of the staff of the two bodies to the determination of the minister and subject to availability of positions. This will render some staff unemployed and is thus unfair. The committee further observes that the provision in clause 128(2) requires the board to give a staff member the option to serve which is also unfair. Recommendation The committee recommends that: i) Clause 126 be amended to provide that staff in employment of the Uganda Health Examinations Board and the Uganda Nurses and Midwifery Examinations Boards should continue in employment in the Uganda Health Professionals Assessment Board; and

15432 THE TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING BILL, 2024 ii) Clause 128 be amended to provide that the employee of the Directorate of Industrial Training is the one to give an option on where he or she wants to serve on the board or not. 4.13 Management Training and Advisory Centre (MTAC) Clause 121 of the Bill repeals the Management Training and Advisory Centre Act, Cap 253. The committee interacted with and received written recommendations of memoranda from the Management, Training and Advisory Centre (MTAC), who submitted that the Bill sought to repeal a non-existent law, as the MTAC law was repealed by the Universities and Other Tertiary Institutions Act of 2001. MTAC attached a legal opinion to this written submission, dated 19 September 2014 from the Solicitor-General, that stated that the MTAC law was repealed by the Universities and Other Tertiary Institutions Act 2001. The legal opinion further stated that the Universities and Other Tertiary Institutions Act (Register of Public and Private Tertiary Institutions) Legal Notes No.14 of 2008, lists Management, Training and Advisory Centre as a public tertiary institution under Part B. The Minister of Education and Sports stated that following the Government policy of rationalisation of Government Agencies, Commissions, Authorities and Public Expenditure and Cabinet Memoranda CT (2018)128, it was decided that MTAC would be merged with Nakawa Vocational Training Institute. Furthermore, the Minister of Education and Sports stated that prior meetings were held with MTAC on the Bill and were, therefore, informed about the merger with the Nakawa National Training Institute and the repeal of the MTAC law. In a meeting with a committee, MTAC indicated that the dissolution of MTAC has far- reaching implications as argued below: (a) That dissolution of MTAC will undermine the execution of the projects that informed the establishment of MTAC. (b) The dissolution of MTAC will significantly undermine the implementation of the micro, small and medium enterprises policy. (c) The dissolution of MTAC would erode the relevance of MTAC in the region. (d) The dissolution of MTAC would suffocate the growth of MTAC business incubators already established in Ntungamo and in Mbale. (e) A dissolution of MTAC would significantly undermine the implementation of the National Development Plan, the Uganda Vision 2040, and the Africa Agenda 2063. Committee observations The committee observes that MTAC law was not repealed by the Universities and Other Tertiary Institutions Act 2001 as is and is still in force. The committee observes that the matter of rationalisation of MTAC was approved by Cabinet under CT (2018)128. Recommendation The provisions of the Bill in regard to the Management and Advisory Centre (MTAC) should be maintained in the Bill. Conclusion The committee understands the pertinent need to regularize and promote the TVET sector and the committee’s interaction with the various stakeholders depicts their readiness of rationalisation which is necessary to make the TVET sector better. The committee recommends that the Parliament adopts the committee report and passes the Bill, subject to the proposed amendments. I beg to submit, Madam Speaker. (Applause)

Thank you, Madam Speaker. I am a committee member and I want to give information about the issues which they wanted clarification on. This Bill merges a number of entities that had different accounting officers. In this Bill, the Uganda Nurses and Midwives Examinations Board, the Directorate of Industrial Training and the assessment body for the allied - that section of the paramedics and all that are being merged here. All of them will be under this one council. Actually, there are almost four entities that have different accounting officers which will be merged and there will be one executive officer who will be supervised by this council. Let us not look at it as a stand-alone. We are actually merging many things into one. This council will be the body to oversee it. Thank you. (Applause)

I think the matter she raises is very important. Before, there were cases where people would go through the Directorate of Industrial Training and they would do their skilling in whichever trade and be able to get a Certificate of DIT. Arising from the current proposal, it seems like that which used to happen and has been very helpful in the society will be omitted. The clarification I want to receive, which would also address the concerns of the other colleagues, is; does the National Craftsperson

Madam Chairperson, Clause 128 was for former employers of the Directorate of Industrial Training on permanent and pensionable terms. It is amended in sub- clause (2) by deleting the words, “was given the option to serve by the Board and...” Justification To ensure that the employee is the one to give an option on whether he or she wants to serve on the board or not. I beg to move.

Madam Speaker, as usual, I received a question from Hon. Hellen Kahunde, District Woman Representative, Kiryandongo, on e-waste management. According to her, it is a crucial component of development and environmental protection. It involves the safe disposal and re-use of electronic products such as computers, cell phones, printers, and other digital devices that are no longer in use. Her prayer is: what are Government’s e-waste disposal and management interventions in Uganda? Madam Speaker and colleagues, my response is that the Ministry of Information, Communica - tions Technology and National Guidance coor - dinates –(Interjection)- Madam Speaker, I beg for your protection. The Ministry of Informa - tion, Communications Technology and Nation - al Guidance coordinates the implementation of the E-Waste Management Policy supported by the E-Waste Steering Committee, which in - cludes the National Environment Management Authority (NEMA), Uganda Communications Commission (UCC) and Kampala Capital City Authority (KCCA). These institutions collab - orate to ensure sustainable management of e-waste. The E-Waste Management Policy, 2012 provides an overarching framework for e-waste management. Madam Speaker, this is augmented by the Strategy for Electronic Waste Management, 2013 and Guidelines for E-Waste Management in Uganda, 2016. The revised National Environment Act, 2019 established a legal framework for waste management and provides for aspects of e-waste management schemes, including Extended Producer Responsibility (EPR) and equipment return to vendor (take back) schemes. The National Environment (Waste Management) Regulations, 2020 further include specific provisions on the management of e-waste separate from hazardous waste. Madam Speaker, the Government through the National Environment Management Authority (NEMA) and National Enterprise Corporation (NEC), in collaboration with other stakeholders, launched the E-Waste Management Collection Centre located at plot 66, 6 th Street Industrial Area in Kampala in June 2021. The centre carries out rudimentary management of e-waste including collection, sorting, and dismantling. Additionally, private e-waste management handlers, such as BIN it, Nabugabo Updeal Joint Venture, Meridian Waste Uganda Limited, have been licensed by NEMA to handle various aspects of e-waste management including collecting, sorting, dismantling and disposal. Cognisant that the country’s e-waste management infrastructure is still rudimentary and insufficient, the Ministry of ICT and National Guidance, with funding from the World Bank, is undertaking a project to establish a central e-waste management centre and regional collection to facilitate effective and sustainable e-waste collection. Plans include subsequently progressing to refurbishment and recycling of e-waste in the long term. Madam Speaker, the Government is currently undertaking the following measures due to the increased need to address e-waste management; i) Review of the E-Waste Policy, 2012; ii) Needs and readiness assessment of e-waste collection centres; iii) Infrastructure and process requirements evaluation for e-waste management facilities; iv) Capacity building of handlers on e-waste management; v) Training of stakeholders on e-waste management; vi) Assessment of the operations and capacity of stakeholders and the e-waste collection

15289 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 26 NOVEMBER 2024 universities and other teacher training institutions, through increasing the number of school practice from two to three can adequately ensure that the teacher trainees get adequate hands-on practical skills under the supervision of competent staff that enable them to qualify as competent professional teachers. They need to review their teacher education programmes and have school practice in each of the three years of the education degree trajectory. Kyambogo University further questioned if the ministry will have the financial ability for the management of the supervision of the teacher trainee internship programme. This is because most primary and secondary schools lack the basic facilities and equipment needed for effective teaching and learning to take place. There is a need to look into the facilitation and motivation implications of regular teachers and head teachers and the ministry officers to carry out supervisory roles and responsibilities in a sustainable manner. Busitema University proposed that internship placements should be left entirely to the training institutions. They also raised questions regarding the ministry’s preparedness to handle internship placements, citing its current challenges with the placement of intern doctors. KOFTU wondered what motivated the change from school practice to internship. They stated that industrial, commercial, scientific and social works establishments prefer this term. They were not certain that the head teacher can manage being the supervisor supposing the head teacher is incompetent or has lower moral turpitude. They proposed involving third parties such as the district education officers and universities. That was their view. Soroti University indicated that the Bill does not include teachers’ welfare during the internship. That was their view. EAN made a proposal for recognition of prior learning experience and equating these other present qualifications they hold to equating and equalising or substantial reduction of the 12-month requirement for internship in the third schedule in the event that the same consideration is missed in the regulations. Therefore, according to EAN, it is inconceivable to have a person already teaching at higher institutions of learning with a master’s degree or a PhD to do a 12-month internship teaching. The committee’s benchmarking visit to Ghana revealed that the Ghanaian government has compulsory national service for all students who complete degree programmes from any profession. The Government caters for all costs of the students under National Service Commissions or programmes. (Applause) Committee observations The committee observes that it is not fair for a teacher to undertake internship as well as school practice. The Ministry of Education and Sports failed to show the committee how school practice has been ineffective for a teaching force. (Applause) The committee observes that the period of one year is too long after a teacher has completed a degree and is subjected to another year of training in addition to school practice. Teachers should only be required to do teaching practice and school practice, which is the same. The committee further observes that the Government is facing considerable challenges in handling intern doctors in the medical profession. Given the resource constraints that always affect the internship requirements in the medical profession, it is thus questionable if the government will effectively handle the compulsory internship for teachers. Committee recommendation The requirement of internship for teachers be deleted from the Bill but in the alternative, teachers should be required to do school practice in each year of the teacher training course.

15120 THE NATIONAL COFFEE (AMENDMENT) BILL, 2024 that is, Science, Technology and Innovation, to support what was called Strategic Pharmaceutical Industrial Investment and particularly Dei Biopharma Limited. In fulfilment of Sections 6A and E of the Administration of Parliament Amendment Act 2006, I led a delegation of some members of the shadow cabinet to visit Dei Biopharma Limited on Thursday, 19 September 2024, to establish value for the taxpayer’s money invested in this company and assess the progress of operations of this company. Dei Biopharma Limited, a drug and vaccine manufacturing plant, is located at Matugga in Wakiso District, and its director is a one Mr Matthias Magoola. This pharmaceutical company was launched on 6 July 2021, and it set out to produce all forms of essential medicine, including vaccines. Mr Magoola came into prominence in March 2020 following his claims to have discovered a cure for COVID-19. He promised to produce medicine for COVID-19 but that never saw the light of day, Madam Speaker and Members. To date, Dei BioPharma Limited has received a cumulative total amount of Shs 723.4 billion in funding from the Government. This financial support began with an initial allocation of Shs 70 billion, which was granted during the Financial Year 2023/2024. This was followed by an additional Shs 75 billion in December 2023, and finally, the most recent significant amount of Shs 578.4 billion that was provided through the supplementary schedule you have talked about. The bailout money was intended for the Government to acquire equity and become a shareholder. However, the funding allocated to Dei BioPharma Limited became contentious during the Parliamentary discussions, with the minority report raising multiple concerns, which included: 1. Lack of evidence of a special board resolution granting the Government shares in this company. 2. There was no evaluation and valuation of this company by the Chief Government Valuer to ascertain the company’s worthiness and viability. 3. There was no memorandum and articles of association to establish the actual owners of the company. 4. There was no disclosure of beneficial owners as a new requirement in the Company Act to curtail money laundering. 5. There was no memorandum of understanding or agreement spelling out key obligations. And these are questions we asked on that day in this House, Madam Speaker. The Government promised that after the supplementary request was approved by Parliament, they would set out to do all that due diligence. This position was not tenable to a number of us in the House because we did not want to put the cart before the horse. We told the Government that providing money to a company whose worth is not ascertained is like shooting first and aiming later. Despite our concerns, the supplementary request was approved. The delegation of legislators that I went with interacted with members of the board and management, who provided some insights into the company’s initiatives and challenges. They offered perspectives on regulatory compliance and pharmaceutical practices, including research developments and production capabilities. The objectives of our oversight visit included: 1. Assessing the progress of setting up the plant and establishing whether there was value for taxpayers’ money thus far. 2. To verify whether there was progress regarding Dei BioPharma Limited’s pledge to manufacture vaccines and other essential medicines. 3. To ascertain the extent of the Government’s shareholding in Dei BioPharma Limited. 4. To determine if a proper valuation was conducted and whether an agreement exists between the Government and Dei BioPharma Limited. COMMUNICATION FROM THE CHAIR [Mr Ssenyonyi]

Exactly! We struggle and fight to see that some of the industrial parks or some of the investors can come to these rural places so STANDING COMMITTEE REPORT

15111 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 23 OCTOBER 2024 that our districts can also create some revenue. Madi-Okollo is on the list for industrial parks but we still do not know. When the minister came here, there was nothing clear to say these are the districts that are getting industrial parks. These are some of the areas where we can collect local revenue. Thank you.

On the report, Madam Speaker, some of the issues that I did not address related to the money that is supposed to come to Mbale Industrial Park, for infrastructure development including roads and culverts. About Shs 66 billion had been budgeted for both Kapeeka and Mbale Industrial Parks and Shs 32 billion which was not released was meant to come and do work in Mbale. Perhaps, the minister can enlighten on why Mbale Industrial Park was left out. One of the key projects that was supposed to be done is a drainage channel that runs around the industrial park, to prevent it from flooding. Some work was done by the investors; they just did manual digging with machines. The channel was supposed to be constructed, but this has not been done. As a result, some of the houses that are along the border with the industrial park have collapsed. The land is collapsing because it is about 10 metres deep and about a kilometre above the industrial park. That is one of the key issues that I needed the minister to clarify. The second was about the renovation of the one-stop centre in Mbale. Perhaps the minister can give more information on when it is

The other issue concerns the management of the industrial park that was handed over to the investor, Tian Tang Group. There have been several allegations concerning the selling of this land. An acre is going for about $150,000 to $200,000, yet this is supposed to be free. Those of you who have been following what has been happening in the media, actually, the Chinese have started fighting against each other because of the allegations that once they come and set up the factories, they are supposed to give shares to the management and the chairman, Paul Zhang. A lot has been going on. Perhaps, the minister can enlighten us. I am told - because some of them approached me - that they have even been prevented from going to see the President. They have raised queries on several occasions and have failed to reach out to the President to be helped. The locals cannot access the industrial park or get land in the industrial park. Maybe, the minister can tell us how Ugandans can get land because many have tried and have failed to get land in the industrial park. Thank you very much.

Thank you very much, Madam Speaker. I am happy that the honourable minister is here because yesterday, I raised an issue. Madam Speaker, you are aware that for the last few weeks or months now, the Uganda Investment Authority has been in the media, not for very good reasons. Even yesterday, the media got flooded with different kinds of negative stories. We are aware that the Uganda Investment Authority plays a very critical role, especially in promoting and facilitating investment plans, as well as advocating for a competitive business environment. I would like to hear from the honourable minister whether this constant negative energy that we see being written daily in the newspapers, is good for the face of the country, especially as far as the promotion of investment is concerned. It is important that the ministry addresses some of these issues because it has very bad implications, especially for those who want to invest in this country, but are reading and seeing only negative stories. Finally, I know that some years back, when I was chairman of Gulu, the Uganda Investment Authority got in touch with Gulu District Local Government. At that time, we were not yet a city. The intention was to establish an industrial park. We did our best and provided land. Unfortunately, 13 to 14 years down the road, the whole thing went quiet. Recently, I started hearing goalposts being shifted that we are going to have the industrial park in Nwoya. It would be good for us to be assured where exactly we are going to have this industrial park. Do we still have a plan of having an industrial park in Gulu City and if so, what do we need to do? How far has the ministry gone in trying to handle that? Thank you very much.

Thank you very much, Madam Speaker. About the eight industrial parks, Iganga had been identified as one of the areas, which were to benefit from this programme of having an industrial park, specifically at a place called Busowobi. The Uganda Investment Authority, Ministry of Finance, Planning and Economic Development and the former Rt Hon. Prime Minister, Dr Ruhakana Rugunda kept visiting that place and engaging stakeholders in a bid to establish an industrial park. Recently, we were told that positions changed. So, I would like to make use of this debate today to know exactly what is happening to this industrial park. Is it there or has it died a natural death? If it has died, what is the way forward; we feel this is one way of changing

14718 STANDING COMMITTEE REPORT the trend where Busoga has been rated as one of the poorest regions in Uganda. We felt the industrial park would address some of these challenges we have. Thank you.

Thank you, Madam Speaker. Eight years ago, the Government secured land in Kabale Subcounty in Hoima District for the construction of an industrial park. The Government paid money and relocated people, but currently, this land is being encroached on by some people in Government – (Interjections) - it is not for today. I will come with evidence next time, but my question is –

My question is: “When is the construction of the industrial park going to take place?” That is my concern. It has taken a long time and people are waiting. Thank you.

Thank you, Madam Speaker, for the opportunity. I need clarification from the honourable minister. First, I thank the committee for the report. Fort Portal was one of the areas that were gazetted to be given an industrial park that would serve the entire region; Tooro/ Rwenzori region. Land was secured and it is still there up to now but since that time, there is nothing taking place. This industrial park would boost the entire region. Given the fact that we border Congo, it would boost our trade between Uganda and Congo and bring economic activity to that region, but unfortunately, up to now, nothing is taking place. Can I now get information from you, honourable minister, when something will be done to ensure that the industrial park in Fort Portal that would serve the entire region is going to be constructed? Thank you.

We know his brand; Information Technology (IT). When they talk about an expert in IT, you should rise but on issues concerning the poor people - (Laughter)- thank you, Madam Speaker. When they establish these industrial parks, people acquire plots in them. They are largely meant to promote industrial growth in that particular area. In addition to what you have asked the minister to provide, we would also be interested in knowing the people who acquired plots, like companies, because they have made it a business. They go to Namanve and apply for plots. A plot in Namanve is very expensive. Using company law, they trade it and you find that a company that acquired land in 2002 in Namanve has nothing because it has sold it over and over. So, we would be interested in having the minister also give us that list. Secondly -

The reason we are asking her for an inventory is because it would help the Government and the Parliament to make a good follow-up through our committee. This is because people who have since first applied for these plots of land have sold and transferred them and nothing is taking place. My major and biggest concern is those industrial parks that have been established in rural areas. We are interested in the Government also delivering the infrastructure like power, water and other necessities that would at least provide – and of course the internet to make it easy for them to be real industrial parks. They buy land as an industrial park but it remains a forest. Who is going to go into a forest with no power, water, roads, with nothing? Which investor is going to go to that place?

14720 STANDING COMMITTEE REPORT buy it. We gave the Government land for an industrial park. They have not yet done much on it but I also appreciate that their budget is not handsome enough to do all the industrial parks. I propose that the Uganda Investment Authority (UIA) enter into an agreement with the local government on how to use the land, not them taking the land. In the agreement, they should agree on who is going to do what - UIA needs to do the planning and design of the park. After designing it, we, in Dokolo, will start working on the infrastructure by tapping into the resources that they have given us for infrastructure. We need support on incentives like power; good power coming up to Dokolo. The other issues of dividing the land and giving it out; leave that to the local government so that it is not given to anybody just like that. So, I propose that we need to rework and start working. Otherwise, the budget for UIA will not allow the development of these industrial parks the way they are now. Thank you, Madam Speaker.

Thank you, Madam Speaker. I would like to seek the indulgence of the minister on some policies. To begin with, the country has had a soft spot for foreign investors as opposed to local investors, giving them more incentives. The question I am asking the minister is: what is it that you have done to improve foreign investors, and to encourage foreign investors? Honourable members – ( Interjection) – local versus foreign investors. Sorry, honourable members, there are issues associated with only encouraging foreign investment. For example, capital flight. The other issue I would like to raise is the location of industrial parks. It is good to encourage industries in every district, but the Uganda Investment Authority has to guide on what type of industries should be in particular locations because this is a time bomb for environmental issues. You have seen a school besides an industry, and there are public health concerns. The other question is the calibre of investments we are attracting. When you walk along these industries, you see a column of workers that you can rightfully say that they are mostly casual workers, who earn little, and the trickle- down effect is low. It would be very good if most of these industries were employing an army of graduates or diploma holders. That way, we would have the growth of the country sped up - (Member timed out.)

Thank you, Madam Speaker. I take this opportunity to move a motion since most of my colleagues are asking about where their industrial parks are, like in the case of Iganga, what the land should be used for. It is my humble prayer that we give the minister time to respond to whatever they have put forward - (Interjection) - since we are going to Prime Minister’s Time, such that we put in our queries because we have so many issues that we want to give the Prime Minister. Thank you.

14723 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 3 OCTOBER 2024 nothing was done. For example, if you look at the design, construction, and/or the building of access roads, drainage, and sewage plants, all these are behind schedule, and that is Mbale. When you go to the design and the construction of the sewerage treatment plant, there is no sign of any activity starting, yet money was released. In addition, when you go to the industrial parks, it is a white elephant. What is shown here, madam minister - your accounting officer must be behind bars by now and if not, together with you. (Laughter) I am telling you, I have no kind words because while I was the Vice Chairperson of the Committee on Government Assurance, Madam Speaker, we visited these industrial parks. They are white elephants. You might take things lightly, but once the Speaker gave this, take time and look at – (Interruption)

Madam Speaker, the Member from Mbale highlighted that issues are emerging from the industrial park in his area. A few days ago, we saw Kapeeka’s various products being exhibited from the industrial park there. One of my colleagues also talked about the industrial park in Namanve, from where we are getting many products. Is it in order for Hon. Ssewungu to misinform the country that the industrial parks are completely white elephants when there is evidence that something is being done? I think this kind of checking of the Government must be informed and based on facts. This is what I would like to invite my colleagues to –

Honourable members, there are industrial parks. I think you need to take a tour of the Kapeeka and Mbale Industrial parks and see how beautiful they are. They give a lot of our people jobs. I can ably talk about where I come from, Mbale. It is doing very well. It is not a white elephant per se. Maybe in others, there could be challenges that need to be worked on.

Thank you, Madam Speaker. I am an English teacher and, unfortunately, some Members like Hon. Lee can use words I have not put in my statement. I said “white elephant” not completely. There is a difference between a white elephant and not it being completely a white elephant. Leaving that aside, political responsibility can make you go behind bars. We had Hon. Mukula, one of my good friends from the Teso Subregion who once went to prison. Hon. Mukisa too - I think he passed on or is he still around? These people were arrested and taken to jail because of political responsibility, and, you will not run away from it. Why I am talking about industrial parks - and I want to complete my submission as a former LOP of yesterday. There is a report that will come on this Floor from the Committee on Government Assurances talking about industrial parks. The moment that report is tabled here, you will believe what I am saying. They are saying that industrial parks are performing well but the intended beneficiaries are not benefiting. Those two things are different. You might put everything in place, you show them in pictures or in the newspapers but when the value intended for the people working in them is nowhere to be seen. Therefore, when we talk to the minister for investment, Hon. Anite – with whom we came together here and who is now ex-officio – we are requesting you to take time and read this report in depth. Look at the accountability issues and do something with your accounting officer. That is why the Speaker has supported my submission on Article 164. Otherwise –

Yes, and that we will come up with the Treasury Memorandum within six months to make good of the recommendations and observations of the committee. Now, to the issues that my colleagues have raised, I will start with the first person, Hon. Karim. You asked why Mbale was left out. I want to make it very clear to you that Mbale was not left out. We actually did the budget for Mbale, Kapeeka and Namanve industrial parks. The only challenge was cash flow. That is why we have not even released the money for the two industrial parks – Mbale and Kapeeka. However, for Namanve Industrial Park, that was a loan, which was approved by the Parliament of Uganda and the money is available. I will speak later about that project since there was a question about it. You asked a question about the renovation of the One-Stop Centre. The challenge has been cash flow. We did a budget as Parliament, but we did not get the exact release for the One- Stop Centre in Mbale. You talked about selling land in Mbale Industrial Park. Madam Speaker, I would like to give information, as far as the concession on Mbale Industrial Park is concerned, that it is an investor called Mr Paul Zhang, who came to this country as an industrialist and his first industries are in Mbalala around Mukono.

14726 STANDING COMMITTEE REPORT [Ms Anite] Mr Paul Zhang came to Uganda, went to His Excellency, the President of the Republic of Uganda, and requested to be allocated 619 acres of land in Mbale. Therefore, the President directed the relevant ministries, which is the Ministry of Finance, Planning and Economic Development, and my ministry as well, to work with the Attorney-General’s office to sign an agreement to lease the 619 acres to Mr Paul Zhang. The understanding and the condition is that the Government provides the infrastructure for the industrial park but Mr Paul Zhang would have to travel abroad and attract investors to that park. Madam Speaker, that park was land that the Government acquired from Bugisu Cooperative Union, and we paid for it. However, the land was encroached on. There were squatters who were planting mayuni , sweet potatoes and maize, among other things, for about 10 years, until the Government got Mr Paul Zhang, who has now established 50 factories in that industrial park. Madam Speaker, I thank you very much for recognising the efforts of the industrialists in that industrial park. Therefore, there is no land for giving out to any investor in that place. We have leased it out for five years until the investor fails. I want to say that he is on time, he has not failed and we have 50 factories there; which are in steady progress. Madam Speaker, I continue to the next question about the failure to access the industrial park. Of course, it has been privatised. The government leased that entire land, so, one cannot just wake up from their house and walk into that industrial park. The public land is that of Namanve Industrial Park, which you can wake up and walk into. Hon. Betty Naluyima, asked a question about the land at Namanve, the only land for the National Forestry Authority (NFA), that the Government wants to take away. Hon. Betty, I would like to assure you that that is not going to happen under my watch because I believe in protecting our environment and so does the President of the Republic of Uganda. (Applause) We shall not take that forest land. I am very honest about it and you can say “ah ah” but the truth is, we will not encroach on the forest land. Be assured! Madam Speaker, Hon. Betty Naluyima again asked another question about the Accounting Officer releasing Shs 800 million. Everyone in this country has heard me talk about the corruption in the Uganda Investment Authority. There is nobody who does not know that there is corruption there. Even I, as the minister - where is Hon. Ssewungu? Hon. Ssewungu said that I should be behind bars. For saying that corrupt people are there? Madam Speaker, my heart is bleeding that the corrupt in Uganda Investment Authority (UIA) are getting protected. They are corrupt, they have to be behind bars like yesterday. However, they are getting protected, what can poor me do -(Interjections)- Nothing! Madam Speaker, allow me to proceed to a question from Hon. Juliet - I have done my part as the minister responsible. I know the extent to which the law empowers me. The law empowers me that if I am not sure - if I detect corruption -

Madam Speaker, allow me to rush to save time for the Prime Minister’s Time. There was a question from Hon. Juliet, that the project at Namanve is not being done in time. That is true. The project is lagging. It is at 50 per cent. It should have been completed by the 19th of January this year, but we are behind schedule. Today we are in October and the project is only at 50 per cent. When you speak, they say you are bad. Madam Speaker, Hon. Tumusiime, asked a question about the Non-Tax Revenue (NTR) of 10 per cent, and that we have not released the money. On that point, I agree with the committee’s recommendation and observations. Hon. Dr Atim, that we appropriated a cash budget and they did not spend the money. I also agree with the recommendation that the Accounting Officer should be held responsible – (Interjection) - yes because you did your part and released the money, which was not utilised. Madam Speaker, you did allude to that fact too. Hon. Mapenduzi, I would be very excited if you told me where the land is in Gulu because there is a huge interest from people who actually want to do an industrial park in Gulu. The last time I wrote to the Gulu District Local Government, they told me they did not have land and in the Acholi Subregion, the only land that was availed to us was in Pader. Madam Speaker, the unfortunate bit of it is that as Government, we have not gotten money to do the infrastructure development in Pader. I apologise to the people of Pader. We will make good by making sure that we mobilise more resources to do the project there.

Thank you, Madam Speaker. There was a question from Hon. Milton, that I should give the status of the industrial park. He is talking about the land in Iganga. The land that the former Prime Minister, Rt Hon. Dr Ruhakana Rugunda had started negotiating about with the people of Iganga, is available. However, the challenge was that we did not have money to acquire that land. To that extent, His Excellency, the President of the Republic of Uganda guided that we must go to areas where people can make local government land in their districts available free of charge. Madam Speaker, I would like to report that when we wrote to the local governments - I personally did land mobilisation - we were able to get land in 28 locations in the 18 zones of Uganda. I thank the Member of Parliament for Masaka because I was looking at a nationalistic character, regardless of the political party - I reached out to the former Leader of the Opposition, and he made land available in Masaka. I assure him that we will develop that land. Hon. Pius said that in Hoima District, land has been available but there are Government officials who are - Hon. Pius, if you can just tell us those Government officials who are - you can even come and tell me in secret; you might be fearing - I will read their names out. (Laughter ) I need to know who in Government is taking this land. In Hoima, the truth of the matter is that it is an oil region; we want to develop that industrial park. Hon. Ibanda, the Fort Portal Municipality land - we have land in Kabarole, and it is for the Fort Portal region. However, it has wrangles between the Ministry of Finance, Planning and Economic Development, the Uganda Investment Authority and the Ministry of Agriculture, Animal Industry and Fisheries, especially the National Agricultural Research Organisation (NARO). We have been wanting to solve the issue. I reached out to my senior colleague, Hon. Frank Tumwebaze and we are working on how to get the case out of court because the former Member of Parliament dragged us to court and we want to resolve that matter. Now the matter is in the hands of the Attorney-General who is here. Hon. Moses Aleper said that the Uganda Investment Authority has spent a lot of money

14728 STANDING COMMITTEE REPORT acquiring land. Hon. Aleper, allow me to educate you that we have not done that. The land that we have got from the people has been free of charge. Hon. Tinkasimire said, “Promote industrial growth in industrial areas - the people sell land - this is corruption” and it is true. Today you saw, my senior colleague, Hon. Matia Kasaija summarily dismiss - the current Leader of the Opposition - by the way, congratulations, said that – yeah, because I did not see you. (Laughter) Madam Speaker, the truth of the matter is that Hon. Matia Kasaija decided to take the action he took today of summarily dismissing the board because there was a sale of land, resale, double allocation, complete and total mismanagement. He thought the power you gave to him under Article 5 of the Act empowered him to remove - and so, he was dismissed and is appointing a new board. Hon. Amos said that UIA should enter into a Memorandum of Understanding (MOU) with the local government. We took that discussion because His Excellency, the President guided us that we must work with the local governments to make land available such that we do not limit growth in our local government areas. We would like industrialisation to happen everywhere in Uganda such that you can – (Interjection)- even in Sembabule, make land available regardless of the corner of Uganda you are in. If you have land available, my job as the Minister for Investment and Privatisation is to encourage Ugandans and also ask foreigners to come and put their money in that land because we do not want to discriminate against the growth of Uganda by concentrating development only in the capital city, but rather want it to happen in every local government, and I am happy to work with the local governments. (Applause) Hon. Agnes, you have raised the point and said the Government has given more incentives to foreign investors. I would like to tell my colleagues that the incentives that you hear us talk about are given by law. And there is nobody in this land other than the Parliament of Uganda that has the mandate to make the law. Therefore, the incentives that we have, that we talk about, are what you have permitted us to talk about. However, if the need is that we must give more incentives to the Ugandan investors, then we will come back here and ask you to amend the Investment Code Act to allow us to offer more incentives to the Ugandan investors. However, as it is, I cannot work outside the law to reinvent the wheel of Parliament that I respect and give incentives to others, outside the law. Therefore, what we are earmarking is within the incentives. I am only left with three questions and then I will sit down. What type of industrialists should be attracted and in which particular areas? And who is an investor? Madam Speaker, you cracked a joke when said, “Is it the person who is coloured; who is red? You actually said the person is ‘red’. No, an investor is defined by law and it is this Parliament that defined it. For a local investor, you should have an investment licence and for you to qualify to have an investment licence, you should have a minimum of $ 150,000. If you are a foreigner, you should have an investment of $ 300,000. This law was passed by the Parliament of Uganda and is well- defined. The question that Hon. Lee raised; he said that he sees so many coloured people, who go into their villages and set up shops. My response to that question is that the investors are defined. If you see anybody doing trade, ask Hon. Bahati because that is under the Ministry of Trade, Industry and Cooperatives and Ministry of Internal Affairs (Directorate of Citizenship

Thank you, Hon. Anite. When you allocate land in an industrial area, it is presumed that after five years - if you do not use the land, it is reclaimed. Do you warn the person before it is reclaimed by the Uganda Investment Authority?

14680 STANDING COMMITTEE REPORT financial statements at their correct values, which should be depreciated over their useful life in accordance with the accounting systems. Madam Speaker, I am happy that the people of Busiro twinned us and I am being assisted by honourable. On receivables of Shs 21.42 billion, we make observations on page 15 and recommend that the accounting officer should ensure that strict measures are instituted to collect all outstanding receivables without any excuses. On outstanding payables of Shs 1.90 billion, we make observations and recommend, on page 16, that the Ministry of Finance, Planning and Economic Development should ensure that sufficient budget provisions are made for outstanding payables to enable their full settlement. On delayed revaluation of the authority’s land measuring 27,877 acres, we observe on page 17 and recommend that the Ministry of Finance, Planning, and Economic Development should provide the requisite funding to the authority to do land titling and regular the revaluation of its land to ensure accurate financial reporting and maximise the land’s potential for increased revenue generation. It is an issue that Parliament has pronounced itself on in a couple of seconds or microseconds ago. On the development of the infrastructure design and the building of Kampala industrial and business park, Namanve, Madam Speaker, we observed, on page 18, that there are delays in the implementation of the project. Based on the observations, we make the recommendation on page 19 as follows: (i) The accounting officer should expedite the completion of the project to avoid unnecessary cost overruns; (ii) The authority should improve on project planning, management, and oversight to ensure timely implementation in order to achieve the intended objectives of the programme; and (iii) The Government projects should enhance environmental protection and preservation by avoiding wetlands except in the clearest of cases based on absolute necessity. On cumulative achievement of project activities, the committee makes observations on page 20 and recommendations thereon that the accounting officers should ensure that before starting projects, proper coordination between stakeholders like NEMA, UMEME, NWSC, NITA-U, etc, is undertaken to harmonise the designs and avoid challenges of rejection of some sites that cause delays in project completion and service delivery to the beneficiaries. On absorption of funds under the KIBP- Namanve Project, we observe on page 21 and recommend as follows: (i) That the accounting officer should institute robust monitoring and evaluation of the new interventions meant to ensure that the project activities are completed at the right time with quality and minimal cost to realise its intended project objectives; and (ii) The authority should improve its financial planning and management, streamline bureaucratic processes, and ensure timely and effective implementation of the funded projects. On the delivery of services from implemented activities, we made an analysis from pages 21 to 22 and also observations on page 22 with the attendant recommendation that this being a minimal and well-explained query, it should be dropped. On the status of Uganda Investment Authority land utilisation, we make an analysis on pages 22, 23-24 and observe on page 24 with recommendations that: (i) Uganda Investment Authority should develop and implement inclusive land use plans that consider the needs and

14681 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 2 OCTOBER 2024 potential of each region to ensure balanced development and promote sustainable use of available land; (ii) The authority should allocate resources, including funding, technical assistance and infrastructure development fairly across the districts to ensure all regions have an opportunity to develop; and (iii) The board and management of the Uganda Investment Authority should explore mechanisms of expeditious land dispute resolution. I noticed that the board has since expired and we are waiting for the appointment of a new board. On the status of the implementation of presidential directives on industrial parks, we made an analysis on pages 25, 26 to 27 and made observations with attendant recommendations as follows: (i) That the Uganda Investment Authority should seek renewal of the expired directive of the President; and (ii) The board and management of the Uganda Investment Authority should complete the establishment of the eight industrial parks as envisaged in their work plan. Payment of UIA administrative and additional assessment of Shs 460 million On this, we observe and recommend as follows: (i) The accounting officer should ensure adherence to the commitment control system to avoid accumulation of arrears in lieu of statutory deductions; and (ii) The accounting officer should ensure that there are budget provisions for the settlement of all domestic arrears. On unimplemented procurements, we observe and recommend that: i) The authorities should ensure effective procurement planning and robust management systems to mitigate the problem of non-implementation; and ii) The Authority should have programme timelines and work within those timelines. On the expiry of appropriations, Madam Speaker, we analyse and observe, on page 30, and recommend that the accounting officer should always comply with the law by seeking relevant authority if there is justification, otherwise, return the funds to the Consolidated Fund. With that, Madam Speaker, we conclude by stating that the Uganda Investment Authority plays a crucial role in enhancing investment in Uganda, which drives national economic growth and development in partnership with the private sector. It is, therefore, recommended that Parliament be pleased to adopt this report, as I now beg to move. I thank you.

I would like to thank the committee for the report. Uganda Investment Authority is an entity that is supposed to help us attract investors into the country. Usually, it does that by the incentives that the Government provides and also some assurances of some infrastructure which will help some of these investors’ products to reach the markets. Now, from the report, we have seen that Shs 86 billion was the approved budget but only Shs 46 billion was released. This caused some of the plans, like roads that were meant to lead to some of these industrial parks, not to be constructed. Now, if the investors are given assurances that roads and power are going to be there, they come and set up their factories, and produce their goods but they are not able to make profits in the end - Government is acting as an investor

14682 STANDING COMMITTEE REPORT by bringing these investors. For 10 years, they do not pay taxes yet after the 10 years, the Government expects to reap from them. Yesterday, in the report of the Uganda Revenue Authority (URA), we saw that our tax revenue to GDP is very low in the region. But I see a situation where, after most of these investors have started making profits, Uganda will be one of the countries with a good tax revenue in the region. However, if the Government does not invest in the facilities that are needed to promote these industrial parks and industries, we are going to have a very big issue. The second issue is that I would like to agree with the committee on the issue that the Uganda Investment Authority should be facilitated to invest and procure the eight industrial parks of which Madi-Okollo is one. Thank you.

Thank you. We really wanted the Minister of State for Investment in this debate. It is a very important report. Honourable members, we have had a lot of issues on investment. Is it possible for us to have the minister in the House? I do not want a debate on this thing; I want the minister here. We will stand over this report and go to the next. We want the minister here. (Applause) [Hon. Ssewungu rose_] Do not waste your energy. There are issues with investments, all of us want industrial parks and that can only be answered by the responsible minister.

Madam Speaker, it is important to note that we are debating queries by the Auditor-General on the Uganda Investment Authority. The Government will respond to the resolutions adopted by Parliament through a Treasury Memorandum. This particular one is on queries but it is also important that you direct us, the ministry responsible for investments, to come and update the House on the other issues of industrial parks, incentives and other matters.

Honourable members, if the board is fired and the roads to the industrial parks are not being worked on – if all these things that have been mentioned are not being done - can we have an assurance from the minister? This is because it is the minister who is responsible for the board. Hon. Bahati, kindly tell the Minister of Investment to come.

In this term, I was once the Vice Chairperson of the Committee on Government Assurances and I can state that a lot of information from this committee about industrial parks poses a lot of questions - we did a lot of work for the industrial parks.

14683 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 2 OCTOBER 2024 With your indulgence, if at all we could also get that report of the Committee on Government Assurances, because we had a full visit to these industrial parks, so that this report with accountability, plus the implementation as per the promises of Government, would give us a very good debate. Otherwise, without the minister, we are going to make some amendments and recommendations. We are very okay with the reports we have heard, but I want the honourable minister to know that we are not only reading this report as it came today - we have heard it before and we are well informed. The Speaker, in her wisdom, has even seen it even before us. Therefore, bear the directives and please leave us so that we can get that man - this accounting officer should not be in office by now; I can assure you.

14406 STANDING COMMITTEE REPORT Listening to what the report says - and I want to thank Hon. Kivumbi for this – I will definitely agree with Hon. Kabanda. We must forward this report to the relevant authorities that have other action points. The CIID should sanction the Inspector General of Government (IGG). We cannot just talk and then leave at this point. We must take action like we have done with a few other reports. Number two, as a matter of policy, let the Minister of Education and Sports come out clearly that our young professors should not be retired at the age of 60 years. This is also in this report. Lastly, there is a constituent college of Gulu University in Karamoja. Ten years ago, the President established Mount Moroto University and wrote a detailed note on what kind of university he wanted in Karamoja. He said that: this university must specialise in water resources management and must look at the issue of minerals because Karamoja has over 50 commercial and industrial minerals. You should be asking us where the minerals are. We have also started on limestone. The limestone we have in Karamoja is said to be the quantity that can take Uganda 300 years. It is over 300 million metric tonnes and we have been relying on Hima with 23 million metric tonnes to handle this country. Why don’t we put that national university – (Member timed out.)

Mr Speaker, I wish to thank the committee for a great job. Even though the committee sampled three districts out of nine, we associate ourselves with the recommendations that cut across the region. As we said while in Gulu, there is a way our government has continued to prove that insecurity in Karamoja and the neighbourhood can be subdued. This is the evidence given out by the committee in their report. What has remained a challenge, which the recommendations of the committee seek to address, is how to sustain that peace. By the time the UPDF secured the region, the next issue of transformation and sustaining the attained peace has continued to be a challenge. So, the recommendations, as given by the committee, are very useful. I will only add a small thing on the issue of developing a skilling programme. We already have an industrial hub in Napak. The idea of industrial hubs in the country is good because it opens room for those Ugandans who have not had formal education to be skilled. However, the capacity of that industrial hub is so small it cannot manage the entire region. We only take about 20 per district in a season, and it is not enough. It is my appeal that another industrial hub is opened in the northern part of Karamoja.

Yes, I know, but I wanted to have the actual language because the industrial hub and the skilling hub are different.

Okay. These are the Skilling Industrial Hubs, the ones managed by State House. It is my appeal that we have another one in northern part of Karamoja so that the numbers can increase. The committee has recommended desilting of some dams. Mr Speaker, we submitted

Thank you. Yes, Hon. Esther. Honourable members, kindly bear with me. THE MINISTER OF STATE FOR GEN - DER, LABOUR AND SOCIAL DEVELOP - MENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) (Ms Esther Anyakun): Thank you, Madam Speaker, for

“… to urge the Government to increase resource allocation to northern region for livestock farming to accelerate socio- economic transformation; 2. To urge the Government to strengthen market access by linking livestock farmers in the Karamoja subregion to international meat markets, including the opportunities offered by the Africa Continental Free Trade Area and other international partnerships with the Middle East; 3. To strengthen the scope and functionality of the Nwoya animal breeding and fattening facility and open at least one more such facility in the Karamoja subregion; 4. To introduce a livestock breeding, fattening and management skilling course in the existing industrial hubs in the four subregions of West Nile, Lango, Acholi and Karamoja to enhance the skill of youth in the livestock sector; and 5. To support the growth of beef production in northern Uganda by functionalising Aswa Ranch in Kitgum and Iriiri Ranch in Napak district, plus opening similar ranches in West Nile and Lango subregions to complement the strides attained in dairy production in Western Uganda.” I submit, Madam Speaker.

Madam Speaker, my name is Esther Anyakun Davinia, Woman Member of Parliament for Nakapiripirit District. I am also the Minister of State for Labour, Employment and Industrial Relations. In a special way, I would like to thank you for making an initiative to ensure that we come to this part of the country because most people leave Government positions without even coming to see what happens here. I come from Karamoja and it is more affiliated to Northern Uganda. Thank you for making Northern Uganda the first to host the regional Parliament.

13974 PRIME MINISTER’S TIME months ago. According to him, to date, the tractor implements such as ploughs have not been purchased, hence making the tractors idle despite the farmers being ready to use them. His prayer is: when does the Government intend to purchase the tractor implements to allow the farmers in Obongi to use the tractors effectively. My response is that the Ministry of Agriculture, Animal Industry and Fisheries supported the northern subregion with both high and low- capacity tractors, that is, the 2WD and 4WD implements to all the districts including the skilling and capacity development of the selected personnel as operators and technicians to support in the operation and maintenance of the mechanisation equipment and machinery. For the case of Obongi, Mr Speaker, and other districts where the 4WD and 2WD tractors were delivered, other implements will be delivered. The assorted units of the tractors and implements are now under shipment and are expected to be delivered by the first week of September this year. 6. Hon. Kiiza Kenneth Nyendwoha, Member of Parliament, Bujenje County, Masindi District His concern is about the continued falling of sugarcane prices across the country yet there is scarcity of the raw materials of sugarcane. Most millers are harvesting sugarcane at 12 months. His prayer is, what is Government’s intervention to mitigate this? Mr Speaker, my response is that the sugar industry is one of the fastest growing industries in the economy of Uganda under the manufacturing sector contributing over Shs 300 billion in taxes annually and employing over 100,000 Ugandans directly. The annual production of brown sugar is 600,000 metric tonnes and the industrial refined sugar is at 75,000 metric tonnes. The industry also produces over 150 megawatts of electricity from bagasse (sugar cane pulp), of which about 70 megawatts is supplied to the national grid. In a liberal economy like Uganda, the prices of commodities are determined by market forces of demand and supply. We have recently experienced a decline in sugarcane prices and this is attributed to the following reasons; i) Decline in sugar prices globally. The price of sugar has declined from Shs 250,000 per 50-kilogram bag in January 2024 to currently between Shs 140,000 to Shs 154,000 per 50-kilogramme bag. This decline directly impacts on the price of sugarcane which contributes 60 per cent of raw materials. One tonne, that is 1,000 kilograms of sugarcane, produces 100 kilograms of brown sugar; at least two bags of sugar. The practice is that the farmer and the miller share the output by 50 per cent. Therefore, the farmer is paid half of the cost of the two bags of sugar produced, leaving the miller with another half. ii) The second one is importation of brown and white sugar by neighboring countries, especially Kenya and Tanzania, from outside the East African community duty- free. The imported sugar from global leading producers such as Brazil and India is much cheaper, and renders Uganda’s sugar uncompetitive in the East African market. When there are external forces that distort the market, cane prices definitely drop. iii) The third one is farmers growing cane without off-take contracts with millers. Some farmers with cane fields that are not registered suffer miserably because millers prioritise crushing cane from their registered farmers and nucleus estates only. The Government has put in place the following measures to mitigate the fall in sugarcane prices:

Thank you, Mr Speaker. Rt Hon. Prime Minister, the Government secured land for industrial parks in West Nile. When is the Government putting up these factories and industries so people can get employment?

Mr Speaker, the Government set up industrial parks using several methods. We have those that are under the State House, those operated by private people and those established directly by the Ministry of Trade, Industry, and Cooperatives. Therefore, the Member will be given information when I get to know whether it is State House, the Ministry of Trade, Industry and Cooperatives, or private, to know how to deal with the matter. Thank you so much.

13915 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 14 AUGUST 2024 enterprises, industrial parks, mining centres and public institutions. This will significantly increase the level of access to grid electricity in Uganda as well as increase the share of clean energy usage for cooking. The interventions are, therefore, well aligned with the Government’s Vision 2040, the National Development Plan (NDP) III, the Parish Development Model (PDM) and the Sustainable Development Goal (SDG) 7, which targets energy access, among others. Parliament cleared the loan in November 2022 and the project achieved effectiveness on 20 July 2023. The project is financed by the World Bank to a tune of $628 million, of which $276.5 million is a grant, $20 million is to be leveraged from the private sector and the Government of Uganda will provide $10 million. Mr Speaker, the Electricity Access Scale-up Project (EASP) is a five-year project whose interventions will be delivered through five components namely: (i) Component 1: Grid expansion and connectivity; consumer connections, and investments in new grid infrastructures to accommodate additional connections; (ii) Component 2: Financial intermediation for energy access scale-up. Uganda Energy Credit Capitalisation Company (UECCC) will use innovative financing mechanisms, including lines of soft credit, through Participating Financial Institutions (PFIs) and grants, through energy service companies to promote the supply and uptake of clean energy technologies; (iii) Component 3: Energy access in refugee host communities. This will provide interventions detailed under components 1 and 2, but specifically in the refugee hosting districts; (iv) Component 4: Project implementation support, affordable modern energy solutions and implementation of Performance Based Conditions (PBCs); and (iv) Component 5: Contingence Emergency Response (Rapid support for eligible emergencies). A transformer has collapsed; you will have to be disaster-prepared. The project implementation is being undertaken by Project Implementation Units (PIUs) at the Ministry of Energy and Mineral Development and the Uganda Energy Credit Capitalisation Company (UECCC). A Project Steering Committee (PSC) is in place to provide oversight and strategic guidance during project implementation. The PSC committee comprises representation from the Office of the Prime Minister, Ministry of Finance, Planning and Economic Development, Ministry of Water and Environment, Ministry of Education and Sports, Ministry of Health, and Ministry of Justice and Constitutional Affairs, as well as Ministry of Local Government, UECCC and my ministry. Progress on the implementation of the connection to the grid expansion components Progress of grid connection under EASP The EASP targets to add 1,073,000 new grid connections. Implementation of grid connections under the Umeme Concession commenced in March 2024. Customer applications for both no poll or one poll service are being received and processed. Between 11 th March and 30 th July 2024, a total of 221,412 applications were received by Umeme, marking a 72 per cent progress in the application status of the 309,841 targeted connections for the period ending March 31 st , 2025. The cumulative number of connections made by Umeme, as of 30 th June 2024, stood at 64,037 and Umeme has indicated that they will be able to deliver as per the work plan since other development partner-funded projects are closing out at the end of July 2024 and their main focus will be on the EASP.

13925 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 14 AUGUST 2024 Related to that, the materials for making solar batteries are still taxed. It makes solar very expensive. It is the same with cylinders. That should be addressed. On the Uganda Energy Credit Capitalisation Company and the Uganda Development Bank (UDB), the issue will be more to do with the interest rate. How much is the interest rate? Is it affordable? That should be addressed. The agreement was signed but you say it does not cover transformers. Why did we sign an agreement which does not cover transformers? What is the alternative? Where are we going to get transformers? We need transformers to have electricity that is reliable, strong, and for industrial power generation. On the issue of coverage, when I look at the district of Zombo and greater Nebbi, the coverage of this project is very scanty. Health centres and irrigation sites should be included so that they are also connected. There is an issue of the Project Affected Persons (PAPs). During the recess, I had people who had challenges with that but we explained, and we shall continue to explain that the money is going to be processed so that they are paid. World Bank issues focus too much on refugee host areas. How about refugee-impacted areas? This should also be addressed. Otherwise, on the challenges, we are ready to support you so that this can be addressed – (Member timed out.)

13889 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 13 AUGUST 2024 “ An Act to Regulate the Manufacture, Importation, Sale, Consumption and Advertising of Alcoholic drinks ; i. To prohibit accessibility of alcoholic drinks to persons below 18 years of age. ii. To amend the Industrial Licensing Act, Cap 91. iii. To Repeal the Portable Spirits Act, Cap 97 and for related matters.” 3.22 Need for an impact assessment of alcohol on the economy and health of the country before processing the Bill. Mr Speaker, the majority report indicates that in November 2019, Uganda developed the National Alcohol Control Policy following broad consultations with key government sectors, regulatory and other agencies and civil society organisations. The policy provides a framework within which the Government of Uganda, in association with other key stakeholders, is to develop and implement targeted alcohol control interventions in the best interest of all Ugandans. As is observed by the majority report, the development of the National Alcohol Control Policy arose out of wide consultations with various stakeholders. This consultation could, in other words, be termed as an “Impact assessment of alcohol on the citizenry”. Indeed out of the consultations, it was discovered by the Government that “The unregulated alcohol consumption causes heavy burden of infectious disease and an upsurge in the occurrence of non-communicable diseases (NCDs) - (Applause) - such as hypertension, cancer, diabetes, mental illness and chronic heart diseases which damage nearly every organ in the body as well as induce alterations in most of the brain structures due to its psychosis active nature, in addition to affecting productivity and social relations if consumed excessively.” We further note that the development of the National Alcohol Control Policy was a positive step by the Government towards regulating the alcohol sector, and since the Constitution empowers Parliament, under Article 79, to make laws on any matter for; peace, order, development and good governance of Uganda and under Article 94 to exercise this power through Bills, it is right and just that Parliament considers the substance and intention of the Bill, and where possible, propose amendments rather than relegate its constitutionally granted power. Honourable members, if we do not consider this Bill for Second Reading, not only shall we be doing a disservice to a policy that has no binding force in case of non-compliance due to the absence of sanctions, but we shall also not carry out our legislative function expected –

Thank you, Mr Speaker. This Bill also creates another challenge because it offends a number of laws that have been passed by this House. (Applause) The regulation of standards is under the Uganda National Bureau of Standards Act. As I have guided here before, if we continue having subject matter laws, it will help us in guiding the nation. Therefore, the provisions here that offend the Uganda National Bureau of Standards law should be removed. Again, this Bill will contradict the Employment Act because it is looking to guide on the issue of employment of persons and minors. This is both governed by the Employment Act and the Children’s Act. We have a law that provides for industrial licensing which is done by the Industrial Licensing Act when you are setting up a factory and this is what governs all manufactories, that is, big and small but if we now create another section that is dealing with a section of manufactories, we are likely to cause a contradiction in implementation. Again, in the National Building Review Board, under that Act, we have provided for the management of building in this country. So, when we start breaking down these issues into a different law, that means when we are reading the law with respect to homes, shops, alcohol, and food we go to different laws; it becomes very difficult and expensive to implement. (Applause) There is nothing in this Bill that is not regulated by an existing law, except the time which also can be managed through licensing. We have laws that license the use of premises in different places. I strongly advise and pray that to avoid causing regulatory confusion, we wholly reject this Bill, and then for the good ideas that we have picked up here, we can find the necessary laws where they are supposed to be input to regulate. I beg to submit. Thank you. (Applause)

Thank you, Mr Speaker. I thank the minister for being elaborate. I also thank the Government for organising celebrations to commemorate the International Youth Day on 12 August 2024 in Soroti. I would like to sincerely thank the President of the Republic of Uganda for initiating the skilling of the youth in all the subregions of this country. And in light of that, I implore the minister that it should not only be the skilling that is being done. This should be enhanced with a few things, for example, after the training for the six months when the youth are going home, those who have done tailoring should be given sewing machines. I am saying this because we have realised that most of these youth, after finishing, go home empty-handed. The minister might tell us that there are sewing machines at their ministry, but the procedure of getting them is not very easy and it is not enough for all those that have already acquired the skills at the industrial hub. So, honourable minister, please take note of that. Finally, Mr Speaker, we have seen youth livelihood programmes in this country, but in some districts, including Lamwo where I come from, the money that is allocated to the youth is always swindled by the technical staff at the district. Most of these technical officers who are the youth focal persons, do not even want to let the youth know how much the district has received for the youth livelihood programmes. I implore the Minister of State for Youth to start fast-tracking how much the youth are getting because severally some of these monies that go to the district are embezzled.

Thank you very much, Mr Speaker. I thank the minister for that statement. I thank the Government for the initiative to attract more foreign direct investment into the country because this is employing most of the youth. However, I believe we need to go beyond just providing employment. We need to look at the quality of employment that this foreign direct investment brings to the country. I represent a constituency that has one of the biggest industrial parks outside Kampala, that is, Mbale City. When you reach this industrial park and look at the conditions that the youths go through, it is quite alarming. It looks like another form of slave trade because many of the youths are being exploited. They are paid about Shs 5,000 to Shs 6,000 a day. They work 12 hours. They are not provided with any personal protective equipment or any health and safety equipment - (Interjections) - yes, that is the bitter reality. I have looked at the National Employment Policy and noticed that not many of these things are catered for. I believe that we need to cater for the youth. We need to protect them. When someone is earning less than Shs 200,000 a day, what do you expect that person to retire to after 10 or 15 years? These factories are not saving for the children. I have not seen any of them register with the National Social Security Fund (NSSF) for savings. They are given handouts and cash on a daily basis. On this International Youth Day, it is one of the key things that we need to look at – (Hon. Pacuto rose_)

Thank you very much, Hon. Karim Masaba. It is with a heavy heart that I rise to move a point of order. I raise a point of order against you because you referred to the youth who work in the industrial park in your constituency as slaves. That is too much, Mr Speaker, to go on record - (Interjections) - yes, all of us have visited that industrial park. They may be earning little but a slave does not earn anything. A slave does not choose to do the work he or she undertakes. That is why, my honourable colleague - I think this is too much for a leader to refer to somebody who has willingly opted to work and is earning maybe less, as a slave. Are you therefore, in order, honourable colleague, to refer to these young Ugandans who willingly work, offer their labour and earn something, though little, as slaves in this era?

Thank you, Mr Speaker. “ kibalo ” means calculation. You calculate the income you are going to receive out of the investment you have made using PDM funds and “ Akasiimo” means to appreciate, whereby you are appreciated for the previous contribution you made. Similarly, under Emyooga, the Government is targeting micro and small-scale entrepreneurs who already have a business in the services sector of boda boda , restaurant, welding, mechanics, etc. The entrepreneurs have been mobilised at the constituency level, and their small businesses are supported to access affordable capital to expand their businesses. Like PDM, Emyooga members manage their funds and have a strong saving component, which has seen the beneficiaries save up to Shs 85.5 billion. The ministry is also focusing on scaling up these interventions concerning the certification of products, value chain development, and the provision of additional capital to Emyooga SACCOs. Issue 3: Youth Unemployment and Uncoordinated Labour Externalisation Programme Mr Speaker, our response is that the Poverty Status Report confirms that the negative effects of COVID-19 and a large share of households in subsistence and informal economy are among the main drivers of unemployment in the country. As a result, the unemployment rate of the working-age population increased from 10 to 12 per cent between the Financial Year 2016/2017 and Financial Year 2021; and that of the youth from 13 to 16 per cent over the same period. To address this challenge, Government is implementing a number of programmes for wealth creation and job creation initiatives, including the Parish Development Model (PDM), the Presidential Initiative on Wealth and Job Creation, Emyooga , the agricultural credit facility, capitalisation of Uganda Development Bank; As well as the two new development finance flagship projects for micro, small and medium enterprises; the Investment of Industrial Transformation and Employment (INVITE) and Generating Growth Opportunities and Productivity for Women Enterprises (GROW). The above interventions target to benefit enterprises and households in both the formal and informal economies. During the last three financial years of 2021/2022 to 2022/2023 and 2023/2024, more than two million households across the 10,585 parishes have already benefited from the capital injection of Shs 1 million under PDM. In fact, this figure is now upgraded. Each parish has now received Shs 200 million. From 2019 to date, over 314,548 employment opportunities have been created under Emyooga programme.

Mr Speaker, I will ask Hon. Fred to come after me but I thought I should give some information to the House about the Standard Gauge Railway. We reduced the number of stations for the Standard Gauge Railway from Tororo to Kampala to three from the original 30. Why? It is because we think 85 per cent of the Standard Gauge Railway will be carrying cargo. Of course, we shall have a few stations where we shall offload cargo; the industrial areas; in Jinja, towards Mukono and Kampala. As for the metre gauge railway, the minister for transport is here. Hon. Fred Byamukama come and assist.

Thank you. Honourable colleagues, I encouraged you some time back to go to YouTube and watch Britain’s Prime Minister’s time. I remember in the one we had in the Tenth Parliament and the previous Parliaments, you would stand up, ask questions, and Members complained about it. Then rules were amended to bring these structured answers. That time you complained about the quality of answers you were getting. Someone comes up with a question and however brilliant you are, you need to go back and consult with the technical people, but you expected the Prime Minister to respond in one minute. That is why we have a mix of these structured and oral questions. We usually push harder to take more and more questions. We shall keep improving every day. Next item. MOTION FOR A RESOLUTION OF PARLIAMENT TO APPROVE THE ADDENDUM TO THE PROPOSAL FOR CHINA CHINGQING INTERNATIONAL CONSTRUCTION CORPORATION (CICO) UGANDA LTD TO PRE- FINANCE THE RECONSTRUCTION OF MASAKA-MUTUKULA ROAD AND REHABILITATION OF NYENDO-VILLA MARIA (11 KM), UPGRADING OF 3.5KM ACCESS ROAD TO UGANDA PEOPLE’S DEFENCE FORCES BARRACKS IN MASAKA, 3.5KM ACCESS ROAD TO MASAKA INDUSTRIAL PARK AND THE UPGRADE OF 28.5KM FOR KIKAGATI- KAFUNZO ROAD

Thank you, Mr Speaker. Pursuant to Article 159 of the Constitution of the Republic of Uganda, 1995, and Sections 36 and 23 of the Public Finance Management Act, 2015 as amended, and Rule 155 of the Rules of Procedure, I beg to move a motion for a resolution of Parliament to approve the addendum to the proposal for China Chingqing International Construction Corporation Uganda Ltd to pre-finance the reconstruction of Masaka-Mutukula road and rehabilitation of Nyendo-Villa Maria, upgrading of the 3.5km access road to Uganda People’s Defence Forces barracks in Masaka, and access road to Masaka Industrial Park and the additional scope of 28.5 km for the upgrading of the Kikagati-Kafunzo road. I beg to move.

Thank you, Mr Speaker. Before I read the report, allow me to lay the report of the Committee on National Economy on the addendum to the proposal for CICO Limited to pre-finance the reconstruction of Masaka-Mutukula Road, 89.5 kilometres, and rehabilitation of Nyendo-Villa Maria, 11 kilometres, upgrade of 3.5 kilometres access road to the UPDF Barracks in Masaka, 3.5 kilometres access road to Masaka Industrial Park, and the upgrade of 28.5 kilometres for Kikagati-Kafunzo Road. I beg to lay the report and the minutes of the Committee on National Economy while processing the addendum. The Minister of Finance, Planning and Economic Development has already given a background to this addendum. This loan was passed by this House in December 2023 and what we are handling as a committee is the addendum on the addition of the Sinosure insurance. You have guided that I should begin with number four. Number four is talking about the pre-financing terms and conditions. 4.1. talks about pre-financing terms and the table is

13842 PRIME MINISTER’S TIME given its strategic economic importance to the country, a commitment was made to include the insurance at 100 per cent of the project cost. The committee had discussed with the honourable Minister of Finance, Planning and Economic Development and got assurance that Government would prioritise payment of the contractor after the two years’ grace period. With this assurance, the committee is confident Government will finance the 40 per cent of the project cost in time to avoid delays in project implementation. Since debt is a service given a priority in the available resource envelope, this means that insurance will only be on 60 per cent of the project cost, which the contractor will borrow. The committee, therefore, recommends that UNRA renegotiates the contract with Chongqing International Construction Corporation (CICO) with a view of reducing the insurance cost by 40 per cent, thus reducing the total cost of insurance inclusive of VAT from Shs 64,779,400,239 to Shs 38,867,640,143. In conclusion, subject to the observations and recommendations herein, the committee recommended approval of an additional Shs 38,867,640,143 to cater for the Sinosure insurance component which was initially not included in the cost estimates for pre-financing the reconstruction of Masaka-Mutukula Road(89.5km), rehabilitation of Nyendo-Villa Maria (11km), upgrading of 3.5km of access road to Uganda People’s Defence Forces Barracks in Masaka, upgrading of 3.5km access road to Masaka Industrial Park and the upgrade of 28.5km for Kikagati-Kafunzo Road. I beg to submit. (Applause)

Honourable colleagues, I request you take your seats. You have listened to both sides. This is your decision. We cannot sleep here. I now put the question that the motion for a resolution of Parliament to approve the addendum to the proposal for China Chingqing International Construction Corporation (CICO) Uganda Limited to refinance the reconstruction of Masaka-Mutukula Road and rehabilitation of Nyendo-Villa Maria Road, upgrading of 3.5km access road to Uganda Peoples Defence Forces barracks in Masaka, 3.5km access road to Industrial Park and the upgrade of 28.5 km for Kikagati-Kafunzo road be adopted. (Question put and agreed to.) Motion adopted.

1. INTRODUCTION On the 28th March 2024, an addendllm to the proposal to prefinance the reconstruction of Masaka - Mutukula Road (89.5km) and Rehabilitation of Nyendo Villa Maria (11km), Upgrading of 3.5km Access Road to Uganda People's Defence Forces Barracks in Masaka, 3.5km Access Road to Masaka Industrial Park and an Additional Scope of 28.5 Kilometers for Kikagati Kafunzo Road was presented to Parliament and referred to the Committee on National Economy. Article 159 of the Constitution provides that Government may borrow from any source, and the terms and conditions of the loan shall be laid before Parliament and shall not come into operation unless they have been approved by a resolution of Parliament. Section 23 of the Public Finance Management Act (PFMA), 2015 (amended) provides for approval of multi-year financial commitments by Parliament. In addition, section 36 and 39 of the sarne Act authorizes the Minister of Finance to raise money by loan and to issue gltarantees for and on behalf of Government. Therefore, the pre-financing request was submitted in accordance to the above legal provisions, 2.O Background In December, 2023 Parliament resolved to approve the proposal by Government to prefinance the reconstruction of Masaka - Mutukula Road (89.5km) and I Rehabilitation of Nyendo - Villa Maria (11km), Upgrading of 3.Skm Access Road to Uganda People's Defence Forces Barracks in Masaka, 3.Skm Access Road to Masaka Industrial Park and an Additional Scope of 28.5 Kilometers for - Kafunzo Road at a total cost of UGX 691.68 billion. frM Following approval by Cabinet and Parliament, UNRA initiated a process to negotiate with the single-sourced Chongqing International Construction Corporation (CICO). Considering the poor state of the Masaka-Mutukula Road, the company was initially requested to submit a bid for this road together with \ 1of11 Gffir)@\ t-\ s F-" t 4^ \ I

Thank you, honourable minister. These are for information purposes. Let the Clerk put them in the library for easy access by Members. II) REPORT OF THE COMMITTEE ON SCIENCE, TECHNOLOGY AND INNOVATION BENCHMARK VISIT REGARDING SCIENCE AND TECHNOLOGY FOR SUSTAINABLE DEVELOPMENT AT THE COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH IN PRETORIA – SOUTH AFRICA

I am looking at report number one; the Report of the Committee on Science, Technology, and Innovation on the benchmarking visit regarding science and technology for sustainable development at the Council for Scientific and Industrial Research in Pretoria, South Africa. I wish to lay.

Thank you very much, Mr Speaker. Through multidisciplinary research, technological innovation, and industrial scientific development, this centre has been able – (Interruption)

These are the findings. Industrial parks are established and fall under the mandate of Uganda’s investment. The delegation also learnt that Turkey has a clear development plan and as a result, the parks are organised, in terms of sectors – (Interjections) - Mr Speaker, honestly, these are the findings.

13712 MINISTERIAL STATEMENT the Science, Technology and Innovation (STI) committee derived the following recommendations: i. The Government of Uganda should strengthen the legal framework for the industrial value chain; ii. The Government of Uganda should put up measures and guidelines on how tertiary institutions and industries can work together to have research and innovation implementation; iii. The STI Secretariat in Uganda should have guidelines on how the innovation funds can be accessed by the scientists, compared to what Turkey is doing; iv. The Government of Uganda should invest in building and upgrading infrastructure, to support STI activities and innovation hubs; v. The Government should also learn from Turkey how to designate land for innovation hubs in industrial parks; and vi. The Government of Uganda can also organise industrial parks into sectors to ease the allocation of finances. It is our prayer that this report is allocated time for a full debate and the matters that arise from the observation of the committee are put under effective consideration by the STI Secretariat. I beg to move.

13642 THE OPPOSITION RESPONSE TO THE ADDRESS ON THE STATE OF THE NATION His Excellency the President highlighted the three historical missions for Africa to survive and thrive; and these were prosperity for the African people including the people of Uganda, strategic security for the African people and taking advantage of the brotherhood of the African people. These historical missions are anchored in the four principles of the National Resistance Movement and these are patriotism, Pan- Africanism, socio-economic transformation and democracy. These three historical missions will stimulate the four sectors of the economy, namely commercial agriculture, manufacturing, services and information and communication technology. His Excellency the President informed the country that since 1996, the Ugandan economy has recovered as portrayed in the high production of homegrown and processed agro products, industrial products whose total output has surpassed the internal demand, as I can explain. For instance, for the case of sugar, we are producing annually 600,000 metric tonnes, and our local demand is only 380,000, and thus generating a surplus of 220 metric tonnes. For milk, we are producing 5.3 billion litres consuming only 800 million litres thus a surplus of 4.5 billion litres. For cement, we are producing 6.4 million metric tonnes, only consuming 2.4 million metric tonnes and thus generating a surplus of 4 million metric tonnes. The total annual surplus is being traded within the African market and beyond. The President further informed the nation that through patriotism and Pan-Africanism, the East African community was revived and the common market for Eastern and Southern Africa(COMESA) consolidated. This has expanded the narrow market for Uganda`s products. East, Central Africa and the COMESA are buying the surplus goods and services to a tune, for example, from COMESA of $2,157 billion. The East African countries are importing from Uganda goods valued at $2.140 billion. With a more united African market, through the implementation of the existing common market protocols and the customs Union Protocol, Africa can then be able to negotiate with other countries for market access and these potential markets are the European Union, the United States of America, China, Russia, the Gulf and India. The President reminded Ugandans about the socio-economic transformation as a key ideology of the National Resistance Movement. The NRM Government has continuously guided that the socio-economic transformation can be realised through education for all and prosperity for all and joining the four money- making sectors of commercial agriculture, manufacturing, services and ICT. The Government has set up funds and initiatives for low-income individuals to enable them to attain socio-economic transformation. And these are the Operation Wealth Creation, NAADs, plan for modernisation of agriculture, Entandikwa in the past, Parish Development Model as of now, the Emyooga, the Youth Livelihood Fund, the Women Fund and funds from the Growth Opportunities and productivity for Women Enterprises (GROW). The more empowered individuals should borrow from the Uganda Development Bank for agriculture, manufacturing, and some of the services such as tourism. The President highlighted that Uganda has entered the lower middle-income status with $1,182 per capita. This has been achieved after embracing the NRM’s philosophy, ideology, and strategy of economic recovery through restoring and expanding the production of the traditional cash crops and minerals, diversifying the cash crop with food crop, water, flora and fauna, animal products, palm oil, and fruits; adding value to some of the raw materials and [Mr Okot] DEBATE ON THE ADDRESS ON THE STATE OF THE NATION

Thank you. Hon. Anyakun and then the honourable minister for Karamoja - THE MINISTER OF STATE FOR GENDER, LABOUR AND SOCIAL DEVELOPMENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) (Ms Esther Anyakun): Mr Speaker, I want to thank you for taking us through this day today. In a special way, I want to thank the Rt Hon. Speaker because when I got a call about the death of my brother, I called her and she immediately put Mike Mukula on a conference call together with A-plus and we all coordinated how to bring the body back home. Mr Speaker, Hon. Aleper was a real dad. Hon. Aleper was a husband. When he got his wife, she had not yet completed her schooling but he did not get another one who was educated. He decided to take the one he had gotten back to school. (Applause) Hon. Aleper remained with the children he had; six children. With his height and handsomeness, he did not have “stray bullets”. All the children are

13450 PRESENTATION OF THE BUDGET SPEECH FY 2024/2025 sector has been impressive, mainly driven by strong recovery in retail and wholesale trade, tourism as well as communication and real estate activities. Growth in the industry was mainly driven by manufacturing, construction and mining, while there was increased production of food and cash crops, as well as livestock, which supported growth in the agricultural sector. Agriculture’s performance, estimated to have expanded at 5.1 percent this year, compared to 4.5 per cent registered in the financial year 2022/2023, is attributed to the streamlined implementation of the Parish Development Model(PDM) and fairly good weather conditions. Other factors, which supported strong economic growth include; i) Low inflation and relatively stable exchange rate, which have allowed good investment planning and supported export competitiveness; ii) Increased investment in the oil and gas sector related projects supported by foreign direct investment; iii) Higher external demand for Uganda’s products, including both agricultural and industrial; iv) Recovery of tourism supported by increased investment in tourism infrastructure and marketing; and v) Peace and security for persons and their property. I repeat this. Peace and security for persons and their property. In March 2024, Uganda met the requirements to graduate from the category of least developed countries. Uganda also moved from the category of low human development to medium human development. This is the result of a consistent improvement in health, education, economy and a decent standard of living. This is a big milestone achieved well before the country starts earning from oil exports. When oil and gas start to flow in the year 2025/2026, with the deliberate value addition to our raw materials, productive utilisation of PDM and other wealth creation initiatives, attaining of prosperity for all and the social economic impact will be faster. Inflation Uganda has contained inflation at an average rate of 3.2 per cent in the 12 months to May 2024. Uganda’s inflation is one of the lowest in the region. Annual headline inflation has reduced from the peak of 10.7 per cent in October 2022 to 3.6 per cent last month. The reduction has been a result of good coordination of monetary and fiscal policies, leading to low inflation for most food crops, manufactured foods and essential commodities like laundry, bar soap, sugar and cooking oil. Interest Rates Madam Speaker, the commercial bank lending interest rates for shilling-dominated credit reduced to 17.7 per cent in April 2024, compared to 19.3 per cent in April 2023. Interest rates in the domestic debt market have remained broadly stable, averaging 11.2 per cent on the one-year Government Treasury Bills. To further reduce lending rates, the Government will continue to provide long-term affordable capital through various interventions. In particular, the Government will continue to capitalise Ugandan Development Bank, Parish Development Model, the Agricultural Credit Facility and the Small Business Recovery Fund to provide the capital for wealth creation. Government is also continuing with the capitalisation of the Emyooga Fund to support micro-enterprises, as well as Presidential Skilling and Industrial Hubs for the youth. Grants will also be extended to women in business through the Generating Growth Opportunity and Productivity for Women Enterprise – which we abbreviate as “GROW” – project. For exporters of manufactured products who face working capital challenges,

13451 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 13 JUNE 2024 the investment for Industrial Transformation and Employment (INVITE) Fund, worth $210 million (Shs 800 billion), is going to kick-off next financial year. Private Sector Credit Madam Speaker, private sector credit increased to Shs 21.54 trillion in April 2024, from Shs 20.47 trillion in April 2023, an increase of 5.2 per cent. There has also been a slight increase in the share of credit going to productive areas of the economy. For example, the share of credit going to agriculture increased slightly to 11.3 per cent by April 2024 compared to 11.1 per cent by April 2023, while the share of credit to manufacturing remains the same at 13.4 per cent. Exchange Rate Madam Speaker, despite the depreciation pressure on the shilling since the beginning of this year, the value of our currency has remained largely stable against key global currencies. Between May 2023 and May 2024, the official exchange rate against US Dollar has averaged Shs 3,771. The depreciation pressure on the account of exit of some of the offshore investors searching for more attractive interest rates offered on government papers in competing markets has been contained thanks to our good export performance and Foreign Direct Investment (FDI) inflows. External Trade Madam Speaker, the Government’s Export Promotion Strategy has continued to produce positive results. During the year ending April 2024, Uganda’s exports increased by $2.534 billion to $7.471 billion, compared to $4.938 billion in April 2023, representing a 34 per cent growth. This increase was largely driven by increased exports of gold (75.7 per cent), coffee (21.9 per cent), oil re-exports (21.8 per cent), simsim` (20.2 per cent), tobacco (10.3 per cent), cotton (6.9 per cent) and light manufactured products (4.9 per cent). The major destination of our exports are the East African Community countries, which account for 29 per cent, COMESA, 29 per cent Middle East, 24 per cent and to Asia 20 per cent. Madam Speaker, efforts to increase the value addition to exports have continued to yield positive results. Exports of manufactured products have continued to be significant contributors of export earnings. In particular, in 2023, cement exports reached $91.1 million, sugar ($75.8 million), plastic products ($62.6 million), soap ($33.9 million) and beer ($25.8 million). This Financial Year 2023/2024, efforts to increase export performance have been strengthened through investing in targeted value-addition initiatives and implementing several enabling trade policies. Madam Speaker, in the financial year ending, Uganda imported goods worth $12.9 billion compared to $10.3 billion in the year ending April 2023. This increase in imports was largely driven by an increase in private sector imports of 23 per cent, mainly to develop our nascent oil and gas sector. Foreign Direct Investment, Remittances and Tourism Madam Speaker, the inflow of Foreign Direct Investment (FDI) to Uganda amounted to $2.46 billion in Financial Year 2022/2023, and by December 2023/2024, additional FDI amounting to $1.27 billion had been attracted. Remittances by Ugandans living and working abroad increased to $1.43 billion in the calendar year 2023 from $1.3 billion in 2022. Tourism revenues increased to $1.28 in calendar year 2023, from $1.07 billion in calendar year 2022. Employment Madam Speaker, job creation ranks top on the Government’s socio-economic agenda. The number of workers subscribing to the various pension schemes in the country increased to more than 3.14 million members in Financial Year 2023/2024, an increase of 4.2 per cent compared to 3.01 million members in the Financial Year 2022/2023.

13453 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 13 JUNE 2024 Incentives, Conferences and Events (MICE)programme; iv. Agro-industrialisation and light manufacturing, supported by access to affordable credit through Uganda Development Bank, investments supported through Uganda Development Corporation (UDC), the Parish Development Model, Small Business Recovery Fund, Emyooga, the Presidential Industrial Hubs for Youth Entrepreneurs and programmes to support exporters, as well as growth and productivity of women enterprises; v. Private investment growth, supported by Foreign Direct Investment remittances and a stable macroeconomic investment; vi. Continued investment in industrial parks, construction and maintenance of roads and bridges; and finally vii. Rehabilitation of the Metre Gauge Railway and commencement of the Standard Gauge Railway, expansion of ICT infrastructure and provision of reliable and affordable electricity. Madam Speaker, Uganda’s growth strategy for the next financial year and in the medium term is anchored on four key growth drivers: i. Agro-industrialisation; ii. Tourism development; iii. Mineral development, including oil and gas; and iv. Science, Technology and Innovation. These are the anchor sectors that are going to propel Uganda to a $500 billion economy in the next one and a half decades. Madam Speaker, our growth prospects face some risks that will need to be mitigated. Let me repeat this. Our growth prospects face some risks that will need to be mitigated. These include: i. Climate change affecting agricultural production and infrastructure. We have just been seeing this a couple of months back; ii. Regional and global geopolitical tensions. I will not comment on that one; you all know; iii. High interest rates, which constrain access to affordable debt; and iv. Fluctuations in global commodity prices. To minimise the effects of these risks, the Government is implementing climate change adaptation measures, exploring cheaper sources of financing including climate finance and ensuring frugality in Government expenditure. I repeat this - and ensuring frugality in Government expenditure. I now want to account for Financial Year 2023/2024 and priorities for the year that we are talking about. Madam Speaker, in the National Budget for the Financial Year 2023/2024, which I presented here on June 15th last year, the Government made a number of commitments intended to deliver on NDP III priorities, as well as the promises we made to the people of Uganda under the NRM Manifesto for 2021-2026. In this section, I provide accountability for what the Government has achieved so far and what it intends to do to ensure that commitments to the citizens are, to a large extent fulfilled. Madam Speaker, I will start with what we have achieved by investing in the people of Uganda through prioritisation of healthcare, education, water, sanitation and hygiene. I have provided Shs 10.216 trillion for these priorities, which is 27 per cent of the national budget as detailed below; Health During this Financial Year 2023/2024, the following milestones have been achieved in the health sector: i) The Government commenced the construction of the East African Centre

13454 PRESENTATION OF THE BUDGET SPEECH FY 2024/2025 of Excellence for Cardiovascular Care at the Uganda Heart Institute located in Naguru and fast-tracking the completion of the East African Centre of Excellence for Oncology in Kampala and associated regional centres in Gulu, Mbarara, Arua and Mbale . (Applause) Iyii, engalo ezo nga si z’amaanyi; they do not encourage me. (Laughter); ii) Under the Uganda Inter-Governmental Fiscal Transfers (UGIFT) Programme, 371 health centres II were planned for construction and upgrade to health centres III status. So far, 261 health centres II have been upgraded to health centres III and are fully operational. I hope the Minister of Health can certify this. An additional 110 are ongoing at different stages. Meanwhile, 11 hospitals were rehabilitated in Busolwe, Kapchorwa, Kambuga, Buwenge, Koboko, Amuria, Kotido, Kaberamaido, Kawolo and Kitgum Districts; iii) Three regional blood banks in Arua, Soroti and Hoima have been completed; iv) The Government distributed a total of 25 million long-lasting insecticide treated mosquito bed nets countrywide for the prevention of malaria; and v) The Government also provided 116 new ambulances to 100 constituencies, another 10 ambulances for the regional referral hospitals and six for the Command Centre at Naguru, among others. Madam Speaker, to further enhance the health of Ugandans, a total of Shs 2.946 trillion has been provided for the next Financial Year 2024/2025. The following interventions will be prioritised; i) Promotion and implementation of interventions for the disease prevention and health education initiatives against communicable, non-communicable and neglected tropical diseases and injuries. ii) Provision of essential medicines where an additional Shs 100 billion has been provided; iii) Improvement of the welfare of the health workers including medical interns and doctors designated as senior house officers. I have provided more wage allocations to facilitate the recruitment of staff for the upgraded health centres III; iv) Construction and rehabilitation of more health infrastructure and provision of medical equipment to improve quality of care and provision of specialised healthcare. These include, among others, the Uganda Cancer Institute and Regional Cancer Centres, the Uganda Heart Institute, Intensive Care Units and an imaging centre for referral hospitals; v) Digitisation of the national health system to facilitate service delivery and tracking of medical supplies and health workers’ performance; vi) Construction, rehabilitation and equipping of dilapidated hospitals across the country including the Kampala Metropolitan Area; vii) Strengthening of the network of medical reference laboratories including the establishment of the East African Community Regional Centre of Excellence for Virology at the Uganda Virus Research Institute and the National Public Health Institute in Uganda; and viii) Establishment of a pharmaceutical industrial park and strengthening the National Drug Authority Regulatory Framework. Education The Government considers education as a key opportunity equaliser for all Ugandans, equipping them with the knowledge and skills required for productive employment as well as enabling them to live longer, happier and affluent lives. For this reason, the following

13458 PRESENTATION OF THE BUDGET SPEECH FY 2024/2025 50 per cent of the money loaned to a farmer. Cumulatively, the Government has invested Shs 303 billion, causing a cumulative loan disbursement of Shs 860 billion. This money has enabled a total of 3,868 agricultural projects to access patient capital for commercial on- farm investment, post-harvest management, agro-processing and trade in agricultural produce. Next financial year, the Government will continue to capitalise the ACF with an additional of Shs 30 billion. Capitalisation of UDB Madam Speaker, Uganda Development Bank has grown into a formidable Shs 1.6 trillion bank in assets, providing patient and relatively affordable capital to those adding value to agricultural materials, manufacturers, as well as investors in tourism and hospitality, infrastructure and education. It has created a total of 51,841 jobs. During Financial Year 2024/2025, the Bank will continue to provide capital to businesses involved in value addition, including the promotion of innovation in the areas of science and technology. It also supports youth- led enterprises, and manufacturers and also provide working capital to exporters and those involved in imported substitution. Green financing is also going to be enhanced to ensure climate adaptation and mitigation. To achieve this, the Government is going to further capitalise UDB with another Shs 55 billion. The Government is also in the process of acquiring for UDB credit lines worth Shs 1.083 trillion to lend more to wealth creators. Support to SMEs Madam Speaker, two years ago, the Government set up small business recovery fund to provide soft loans to SMEs that had suffered financial distress during COVID-19. Government provided Shs 100 billion to be equally matched by banks to extend the credit to the target beneficiaries at a 10 per cent interest rate. At a disbursement of Shs 18.4 billion so far, supporting 1,459 businesses, uptake of this fund has been low. Next financial year, the Government and the Bank of Uganda are going to relax requirements to ensure increased uptake of the SBRF to support small and medium enterprise growth. INVITE and GROW Programmes Madam Speaker, the Government is also implementing two programmes namely the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) worth $217 million (Shs 824 billion) and the “Investment for Industrial Transformation and Employment (INVITE) worth $210 million, which is equivalent to Shs 800 billion. These funds are intended to support women-owned enterprises and value addition for export. Madam Speaker, Government is also working hard to reduce the time, cost and complexity of business registration and licensing. A Business Facilitation Centre has been set up to centralise all business-investor-related services to speed up the registration and operationalisation of businesses. Services that used to require weeks or months are now accomplished in just a couple of hours. This is going to enhance Uganda’s competitiveness even further. Agro-industrialisation Madam Speaker, the Government is committed to commercialising agriculture to enhance production and productivity and improve the competitiveness of agricultural products in both regional and international markets. The following are some of the key milestones achieved during this financial year in the area of agro-industrialisation: i) Establishment of afla-safe at Namulonge to help in the management of aflatoxins in cereals and nuts; ii) Construction of a local anti-tick vaccine manufacturing facility, also at Namulonge, to produce vaccines against tick-borne diseases. This will save the country $1.1 billion, which is lost annually due to tick-borne diseases and tap into the Shs 3 trillion regional market for meat and milk;

13460 PRESENTATION OF THE BUDGET SPEECH FY 2024/2025 v. Enhance the conservation of Uganda’s 22 wildlife-protected areas with a focus on mitigation of human wildlife conflicts. The Government is going to construct an additional 150 kilometres of electric fence and maintain the existing 106 kilometre fence, carry out boundary surveillance through more than 13,904 patrols, uproot invasive species and construct four water dams in the protected areas. Madam Speaker, apart from the Shs 287.6 billion that I have directly provided to the tourism sector, an additional Shs 1.629 trillion has been provided for several critical interventions associated with tourism, including support to Uganda Wildlife Authority, construction of tourism roads, road rehabilitation and upgrade under Kampala Capital City Authority, support to AFCON ’27 and the completion of key stadia, strengthening security, law and order in our tourism destinations and extension of internet to tourism destinations, among others. In particular, I have provided an additional Shs 55 billion to Uganda’s missions abroad to support Uganda Tourism Board to market Uganda to potential tourists, market our exports and attract more investors. Science, Technology and Innovation Madam Speaker, Government has earmarked Science, Technology and Innovation as a key catalyst for the qualitative leap to achieve ten- fold growth of our economy. This financial year, building on investments made in recent years, the following are the key achievements attained: a. Kira Motors Corporation (KMC) Government has supported Kira Motors to construct and equip a magnificent 2,500 vehicles per year manufacturing plant in Jinja Industrial Park. This facility has capabilities for bus and truck body manufacture, vehicle painting, power train manufacture, electrical, electronic key systems and trim integration, and production quality inspection and testing. The complex has so far manufactured 39 buses, of which 27 are electric and 12 are low emission diesel. The company has orders of more than 100 buses from Tanzania, South Africa, Eswatini (formerly Swaziland) and Nigeria. This demonstrates the huge market potential for the vehicles. Kira Motors Corporation currently directly employs 168 people in engineering, production, marketing and sales, finance and administration. This number will increase to 600 once the plant in Jinja is fully operational. Madam Speaker, next financial year, the Government is going to support Kira Motors with Shs 32.5 billion to complete the plant and access working capital. b. Presidential initiative on Banana Industrial Development (PIBID) - Madam Speaker, Government has supported PIBID to establish a semi-automated plant in Bushenyi with a daily processing capacity of 14 metric tons of fresh matooke . (Interjections) This project has shown potential for import substitution by replacing wheat and providing gluten- free starch products. These have high global demand. The company has started fulfilling international orders, including from South Korea, the Royal Kingdom of Saudi Arabia, Qatar and Italy. The PIBID currently employs 150 staff and collaborates with 6,543 farmers. Next Financial Year, the Government has provided an additional Shs 50 billion to complete the capitalisation of the company to transition into a self-sustaining business. c. Pathogeny Economy Madam Speaker, the pathogen economy has made tremendous progress in developing vaccines, therapeutics, diagnostics and other health care tools for our public health security and import substitution. The scientists at Makerere University developed the Polymerase Chain Reaction (PCR) diagnostic kit that has so far been used to conduct more than two million COVID-19 tests.

13466 PRESENTATION OF THE BUDGET SPEECH FY 2024/2025 iii. Improving the quality of power supply through the systematic operation and maintenance of existing power infrastructure; iv. Increasing access to clean energy by supporting clean cooking technologies; v. The development of five micro-grid power plants using wind and solar hybrids in Karamoja; and vi. Preparatory activities for the 8,400MW Nuclear Power Plant in Buyende District. Industrial development and manufacturing Madam Speaker, in our tenfold growth strategy, the Government is going to step up efforts to accelerate the diversification of the economy, add value to raw materials to boost exports and import substitution to continue reducing our import bill, and also build more basic industries to produce items that Ugandans use daily such as sugar, soap, cooking oil, clothes, medicines, construction materials, et cetera. Our industrialisation efforts are being undertaken mainly through the private sector, but with the State playing a de- risking role. The Government, through the Uganda Development Corporation (UDC), is undertaking targeted investments to increase Uganda’s manufacturing capacity. During the financial year we are ending, the following investments have been undertaken by UDC to increase local manufacturing capacity: i. The Atiak Sugar Factory has acquired modern mechanised equipment for the sugarcane fields in Amuru and Lamwo districts and installed modern irrigation systems; ii. Four tea factories have been supported to expand and process tea for both domestic market and export. These are: Kayonza Growers Tea Factory; Kigezi Highland Tea Factory; Mabale Growers Tea Factory; and Mpanga Growers Tea Factory; iii. Continued support to Mutuma Commercial Agencies (Ltd) in Luuka District to produce intermediary and final products such as surgical cotton, cotton cake, soap stock, and cotton-seed oil; iv. Investment in Bukona Agro-processors Ltd in Nwoya District to process cassava and cereals into ethanol for cooking. It produces 40,000 litres of ethanol per day; v. Investment in Budadiri Arabica Coffee Mills (Ltd) in Sironko District to process coffee for export; vi. Additional investment in Soroti Fruits Factory (Ltd) that is processing six metric tons of fruit (mangoes and oranges) per hour into fruit concentrates and juice; and vii. UDC has also invested in East African Medical Vitals (Ltd), manufacturer of examination and surgical gloves, to increase the company’s production capacity to create jobs and also save the country foreign exchange through import substitution. Madam Speaker, the Government is also continuing to develop industrial parks to provide investors with the required infrastructure and utilities. Work is in progress in Namanve Park (with 190 companies operating); Liao Shen Park in Kapeeka (19 companies); Sino-Uganda Industrial Park in Mbale (18 companies); Luzira Park (11 companies); Bweyogerere Park (eight companies); and MMP in Buikwe (seven companies). Other operational industrial parks include Jinja, Soroti, Kasese, Mbarara, and Tian Tang-Mukono Industrial Park. So far, over $3.5 billion has been invested in these parks in the form of foreign direct investment. Over 266,812 direct and indirect jobs have so far been created. Security, good governance, and rule of law Madam Speaker, peace and security, as well as the rule of law, are the foundation for all other

13472 PRESENTATION OF THE BUDGET SPEECH FY 2024/2025 i) Twenty-nine per cent was invested in improving the transport infrastructure, including the oil roads, tourism roads, Kampala-Entebbe Express Way, the Kampala Flyover, and the several tarmac roads linking the whole country; airports, including upgrading Entebbe International Airport, and the building of Kabalega International Airport, the rehabilitation of the Metre Gauge Railway, and others; ii) Twenty-eight per cent has been invested in the development of energy infrastructure, including Karuma and Isimba Dams, power transmission lines, and rural electrification; iii) Twelve per cent has been invested in improving water sources for both human consumption and for irrigation and livestock; iv) Five per cent has been invested in agro- industrialisation; and v) The development of industrial parks, and extension of national backbone infrastructure, which improved the quality of internet and communication, as well as investment in education and health, among others. Nonetheless, the ratio of total debt service to domestic revenue, excluding maturing domestic debt (redemptions), is projected to increase to 40.3 per cent, in Financial Year 2024/2025, from 33.4 per cent, in Financial Year 2023/2024, above the threshold of 20 per cent. This is the reason the Government is committed to exercising caution in borrowing to ensure debt sustainability by implementing the following measures: i) Prioritising concessional borrowing where available and reducing commercial borrowing at high interest rates. Such borrowing shall only be for very few strategic and high-impact projects; ii) Strengthening capacity for domestic revenue mobilisation; iii) Controlling Government spending to ensure allocative efficiency; iv) Boosting exports to increase foreign exchange inflows, and v) Ensuring project readiness and quality of public investment to increase the return on investment. Madam Speaker, in conclusion, the economy has fully recovered from various shocks that have impacted it in the past four years. It is now poised to accelerate towards take-off, powered by value addition to our agricultural raw materials and the abundant natural resources, growth in industry, tourism, and innovations by our scientists. This budget is greatly for Ugandans still stuck in the subsistence economy. Countrymen and women under this category, take full advantage of PDM and other wealth creation funds as well as other support services, to join the money economy in any of the four sectors; commercial agriculture, industry, services, and/or ICT. To the private sector, this budget is anchored on the ten-fold growth strategy. It presents you with a multitude of opportunities. It has invested in several interventions to further improve the business environment. The macro- economy is stable; infrastructure is improving; affordable capital has been provided to you to engage in value addition and export; electricity is now reliable and the Government will work hard to reduce its cost; regional markets are expanding; and barriers to market access are being removed. Therefore, take full advantage of these opportunities to create wealth and prosperity. (Applause) Have we agreed with the businessmen? Yes. To the youth, this budget offers opportunities to acquire more skills, access finance, innovate, and develop new and better products. Those with talents, I assure you that the creative industry is going to be supported. This budget is the beginning among many, in the medium- term intended to open up doors for you to escape unemployment and manipulation by self-interested individuals and groups. Take full advantage of the opportunities to make money and live a productive and long life, like some of us.

13377 THE ELEVENTH P ARLIAMENT O F UGANDA T HURSDAY , 16 MAY 2024 Development Bank (UDB) and Uganda Development Corporation (UDC), the Parish Development Model (PDM), Emyooga, Agriculture Credit Facility, support to tourism and support to skilling projects. 5. Investing in the people of Uganda through the social sector spending in education. We shall support the construction of Hoima and Akii-Bua Stadia in preparation for AFCON 2027; health, water and social protection. 6. Manufacturing. 7. Oil and gas. 8. Support science, technology and innovation and research to pathogenic economy, Kiira Motors and vaccines. Madam Speaker, the five growth areas that have been prioritised under the overall strategy of growing the economy ten-fold to be implemented starting the Financial Year 2024/2025 is outlined below: 1. Tourism development; 2. Agro-industrialisation; 3. Mineral-based industrial development; 4. Oil and gas development, including petrochemical industries; and 5. The knowledge economy. Madam Speaker, cognisant of the complementarity of other Government programmes to the attainment of the above growth targets, the Government will continue to support other key interventions and priorities under the NDP programme. With this justification, I wish to appeal and seek support of this House to consider and approve the Budget for the Financial Year 2024/2025. I beg to move.

13384 THE EXCISE DUTY (AMENDMENT) BILL, 2024 The overall goal of the budget strategy for Financial Year 2024/2025 is to accelerate economic growth to at least seven per cent from a raw materials-based to a manufacturing and knowledge-based economy as well as to improve the environment of doing business in Uganda and making it competitive. The Government has signed a new strategy to grow the economy 10 fold from the current base of US$ 49.5 billion for the FY 2023/2024 to US$ 500 billion in the next 15 years. Implementation of this strategy will start in the FY 2024/2025. The strategy is based on five strategic areas/ programmes namely: 1) Agro-industry Development; 2) Tourism Development; 3) Mineral-based Industrial Development; 4) Sustainable development of petroleum resources; and 5) Oil and Gas Development (especially petrochemical industries and Knowledge Economy mainly to do with the mainstreaming of Information and Communication Technology (ICT), Digital Transformation (DT) and Science, Technology and Innovation (STI) into our economy. However, the committee observes that over the past decade, from 2012/2013 – 2022/2023, economic growth in Uganda has averaged 4.7 per cent per annum, which is lower than the average growth of 7.3 per cent in the previous decade of 2001/2002 – 2011/2012. The main reasons for the slow growth in the past decade include the following: a) The regional and global shocks such as climate change, COVID- 19 pandemic, volatility in commodity prices, global and regional conflicts; b) Low productivity in key growth sectors especially the agricultural sector which is the backbone of the Ugandan economy; c) Low efficiency, low effectiveness and low productivity of Government institutions stemming from limited coordination across MDAs and low return on public investments; d) The high cost of doing business, especially because of the significant improvement in infrastructure such as roads, energy, ICT and others; e) The high cost of capital, which continues to constrain business growth and innovation and, at the same time, creating high debt servicing costs for the Government; f) The domination of raw material primary products in the export market, which are vulnerable to world market prices and the effect of climate change; g) Limited access to and transfer of technology; and h) The mismatch between available skills and labour requirements by the markets. In order to address these bottlenecks in the short term to medium term, and to accelerate economic growth and socio-economic transformation, the committee recommends the following: i. The Government prioritises effective implementation of Pillar 1 (production, storage, processing, and marketing) of the Parish Development Model; ii. The Government should strengthen support to scientific-based research, NARO and NAGRC&DB to further strengthen their functions of improved seed variety and technology identification and multiplication for distribution to the farmers and in support of the PDM; iii. We need to support the Ministry of Agriculture, Animal Industry and Fisheries to strengthen her role of inspection, certification and to develop the traceability systems to monitor input services (the current stock is 85 inspectors against the national target of 150); iv. The Government should strengthen public extension systems by recruiting more extension workers (the current stock is estimated at 4,310, with 5,355 vacant positions); SECTORAL COMMITTEE REPORT [Mr Achia]

13386 THE EXCISE D UTY ( AMENDMENT) BILL, 2024 xiv. To enhance budget efficiency, there is an urgent need to introduce annual programme spending reviews, Madam Speaker, so that prior to the budget process, these reviews should be used partly as the basis for prioritising resources in the allocation of resources. Without spending review, the risk is that programmes that are ineffective, of low priority or which have outlived their usefulness, will continue to draw on public resources; xv. There is a need to undertake project due diligence through rigorous feasibility assessment to gauge the viability of the Government projects. This will ensure that projects are well-structured, commercially viable and will provide value for money; xvi. The Government should strengthen real time monitoring of development projects and biannual monitoring reports are prioritised to Parliament to announce oversight of project implementation; xvii. The Government should strengthen the sequencing of projects with priority given to those generating a bigger growth dividend; xviii. The last-mile connectivity should be prioritised. The rollout in districts should be extended to cover the last inch (that is, departments and units); xix. Recruit more ICT officers at the local government level to support the digitalisation efforts; xx. There should be a deliberate effort by the Government to fast-track the industrialisation agenda through further development of industrial parks; xxi. The Government should fast-track the setting up of an iron and steel-based industrial ecosystem for the country. This will result in a spinoff of steel- based industries in the region and absorb the increasing numbers of job seekers; xxii. Accelerate the construction of the East African Crude Oil Pipeline; xxiii. The Government should fast-track the development of the oil refinery and also consider investing in the petrochemicals industry. The petrochemicals industry, if properly nurtured, would have a profound effect on sectors such as plastics through the production of ethylene and associated products which our country imports. The refinery would also have a large spill over effect with huge multiplier effects on other products such as fertilisers and pharmaceutical industries within the region; xxiv. Expediting the mapping of mineral resources for the country and documenting the mineral potential for strategic investors; xxv. Establishment of more beneficiation facilities in the country and establishing a mineral tracking system to ease exports; xxvi. Improving the tourism road networks across the country, including the Greater Kampala Metropolitan Area road network, the ICT and other infrastructure in all tourism sites; xxvii. Promotion and marketing by hiring international specialised tourism consultants or bodies and supporting training in the hospitality industry; and xxviii. Promoting the untapped domestic tourism market to help sustain tourism facilities in very low seasons. SECTORAL COMMITTEE REPORT [Mr Achia]

13388 THE EXCISE D UTY ( AMENDMENT) BILL, 2024 This will entail enhancing domestic resource mobilisation efforts, reducing wasteful expenditures by repurposing large public administration budgets, improving efficiency across Government, strengthening e-government processes and improving efficiency in the execution of projects and public investment, among others. Madam Speaker, allow me to embark on some of the budget priorities for the Financial Year 2024/2025 as per the draft budget estimates: Boosting Household Incomes and Micro Enterprises. This is what the Government is planning to do: a. In order to boost household incomes as well as the development of microenterprises, the following budget allocations have been proposed; b. Parish Development Model will take Shs 1.077 trillion (financial inclusion pillar); c. Emyooga SACCOs - Shs 100 billion of which Shs 20 billion are for teachers’ SACCOs; d. Support to Microfinance Support Centre Limited — Shs 50.07 billion of which Shs 30 billion is for onward lending; e. In order to enhance women’s participation in development Shs 13.056 billion has been allocated to the Uganda Women Entrepreneurship Programme (UWEP) as a revolving fund. In addition, Shs 342.23 billion has been earmarked for enhancing Growth and Productivity Opportunities for Women Enterprises (GROW); f. Shs 3 billion to Jua-kali Enterprises to transition into Formal Economy and Shs 5 billion as Enterprise Funds for Older Persons; g. Shs 121.218 billion towards Social Assistance Grants for Empowerment (SAGE) and Shs 13.2 billion for Special Grants for Persons with Disability; and h. Shs 8.7 billion towards the Youth Livelihood Programme (YLP). Industrialisation and Private Sector Development 1. Shs 174.99 billion for small and medium enterprises (SMEs) in the manufacturing and export sectors through the Investment for Industrial Transformation and Employment (INVITE) programme; 2. Shs 155.6 billion for infrastructure development of industrial parks; 3. Shs 50 billion for capitalisation of the agriculture credit facility to support farmers but mainly agro-processors that focus on value addition; 4. Shs 85.92 billion for capitalisation of Uganda Development Bank. This will support the entire agriculture ecosystem, the private sector players to increase the stock and quality of tourism facilities, and financing of the local production of essential goods as a precursor to achieving import substitution, among others; and 5. Shs 151.27 billion towards the Resource Enhancement and Accountability Pro - gramme (REAP), with the objective of in - creasing resource mobilisation, improving planning and public investment manage - ment, and strengthening accountability for quality, effective and efficient service delivery. Commercialising Agriculture a) Breeding, production, multiplication, and availing animal seed and poultry to farmers countrywide (NAGRC&DB) – Shs 24.43 billion; b) Animal feed production on Government ranches and farms (NAGRC&DB) – Shs 13.11 billion; c) Innovations for management and control of livestock diseases, vectors and SECTORAL COMMITTEE REPORT [Mr Achia]

On Energy, Oil and Gas Development: a. Shs 668.273 billion towards midstream petroleum infrastructure developments. Some of the planned activities include supervision of EACOP construction works in Uganda, development of the Government of Uganda EACOP hub in Tanga, undertaking a feasibility study for the natural gas pipeline from Tanzania to Uganda, completion of payment for the relocation of project-affected persons along the pipeline route. The completion of the construction of resettlement houses for the project-affected persons and embark on refinery EPC activities, among others; b. Shs 530.99 billion for the Electricity Access Scale-Up Project (EASP). The project is intended to increase the proportion of the population with access to electricity from 24 per cent to 44 per cent by 2027 through mainly grid expansion, connectivity, network expansion and strengthening; c. Shs 241.731 billion towards Karuma hydro electricity power projects; d. 126.08 billion towards enhancing power supply to industrial parks and power transmission line extensions; and e. Shs 93.75 billion towards enhanced rural electrification and connectivity across the country. SECTORAL COMMITTEE REPORT [Mr Achia]

Abandoning the budget processing to a young and dynamic junior minister is further proof that removing the presidential age limit from the Constitution was a mistake of industrial scale. Uganda will pay for this for many years to come. The highlight of the budget –(Interjection)- I am now on the highlight of the budget –

I hope, Madam Speaker, that the Attorney-General did not go to court to defend it because they will win immediately and the matter gets resolved. (Laughter) Madam Speaker, because many of these initiatives on page 36 have been here, our proposal is that it is high time we stopped investing money in risky investments. I am using the word “risky” deliberately. I have put here, on page 36 – I do not have to go through everything. Look at the Presidential Initiative on Banana Industrial Development. So far, we have invested Shs 120 billion in this initiative. This initiative wanted Shs 67 billion but it had been allocated Shs 16.7 billion. Now, the corrigendum has given it another Shs 33.2 billion – this thing called a Presidential Initiative on Banana. (Laughter) There is a table showing how much money we have been investing in it. They have never exported – they were supposed to export powdered banana. They have never exported even half a kilogramme but they continue getting money. On page 37, we have investment in Kiira Motors Corporation. We have so far invested in Kiira Motors – let me begin. Kiira Motors was asking for Shs 160 billion, that they wanted to operationalise the Jinja plant. They were allocated Shs 32 billion and have a funding gap of Shs 137 billion. By April 2023, we had invested Shs 312 billion. They were supposed to have produced buses, but I do not know how many buses – I think, maybe, about 10. So, we have invested Shs 312 billion for these buses. Maybe they will come at the end of President Yoweri Museveni’s administration. We visited the plant in Jinja with the Committee on Budget. You need to take note that more than 80 per cent of the parts, in these buses, are imported from China and elsewhere. They said, by themselves, that the local raw material in these buses is 20 per cent, which is also doubtful. You are importing 80 per cent and then you tell the country that you are manufacturing vehicles! I do not have to – also, on page 36, we have Atiak Sugar. We have, so far, invested Shs 553 billion in Atiak. The factory is now under reconstruction. You see, that is how we spend taxpayers’ money. We tell you that, first, do things the right way, but you go ahead and invest and, after investing, the factory closes. They are restructuring – Shs 553 billion! In Lubowa – this wonderful hospital by an investor – we have invested, so far, Shs 476 billion but they cannot even allow you to go and see the bricks. (Laughter) If they are ferrying bricks, at least they should allow us to go and see the bricks and sand. However, even for that, they cannot allow you. Just the other day, we gave Mr Mathias Magoola - we have given Magoola Shs 723 billion. In this budget, the corrigenda brought this morning, there is Shs 75 billion for the Coffee Value Chain. This Coffee Value Chain was processed last financial year and the beneficiaries were read to the committee by Mr Odrek Rwabwogo. He told the committee that this initiative would need $100 million, and Hon. Muwanga Kivumbi warned this Parliament that the moment you begin giving, every supplementary and budget there will be money for this Rwabwogo group. They got Shs 35 billion last financial year; they have been added another Shs 75 billion. You all have followed their stories; quarrelling and some of the beneficiaries saying that this money was simply shared mainly by Mr Tugume in Ntungamo. Ntungamo was not known for growing coffee but this is where this wonderful investor is sharing money. I now go to the last part of this report. I said the bulk of these documents are annexes, you do not have to worry. Page 41 is specifically on public debt.

Y tl \ ,ffi I. t !-. 1i d\t qrK d, )) ,,! l.-. ) N,it. p Description Amount (OOO'I Vote 109 Uganda National Meteorological Authority (UNMA) 12,142,24O t7,646,020 110 Uganda Industrial Research Institute (UIRI) 22,209,33r 111 National Curriculum Development Centre (NCDC) 7,447,559 I12 Directorate of Ethics and Integritv(DEI) 92,2t2,442 113 Uganda National Roads Authority (UNRA} Uganda Cancer Institute (UCI) 57,582,rO2 tL4 115 Uganda Heart Institute (UHI) 45,317,3O4 715,051,021 116 Uganda National Medical Stores Uqanda Tourism Board (UTB) L6,406,252 tt7 118 Usanda Road Fund (RF) 362,587,462 119 L Uganda Registration Services Bureau (URSB) 43,837,567 t49,68r,452 t20 National Citizenship and Immigration Control(NCIC) Diary Development Authoritv (DDA) 7,406,783 12t t22 Kampala Capital City AuthoriW(KCCA) 2L1,275,747 t23 National Lotteries and Gaming Rezulatory Board 16,786,744 t24 Equal Opportunities Commission 18,618,930 t25 National Animal Genetic Resource Centre and Data Bank(NAGRC&DB) 20,397,978 t26 National Information Technologies Authority 46,243,L63 6,517,337 L27 Uganda Virus Research Institute (UVRI) t28 Uganda National Examination Board (UNEB) 145,434,732 34,848,665 L29 Financial Intelligence Authority (FIA) Education Service Commission(ESC) 7,372,964 t32 133 Directorate of Public Prosecution(DPP) 76,332,577 I x i\:i \ [: ;-\ + . -.++l ,. tK*

g \ 4 fit- ---a- allL i -:' , ["' ' n:#, 'I b d( ( ,d 18 't' -., :t 1i ,-.-.. c, -\J \ l -Y \ Amount (OOO') Deserlption Vote t,459,632,742 ot7 Ministry of Enerry and Minerals 2 1 1,582,33 1 018 Ministry of Gender, Labour and Social Development 1,032,065,814 Ministry of Water and Environment 019 573,606 o20 Ministry of Information, and Communications Technolory 92,915 02t Ministry of East African Affairs 43,276,OOO Ministry of Tourism, Wildlife and Antiquities o22 449,40r,722 Ministry of Kampala Capital City and Metropolitan Affairs o23 63,009,500 101 Judiciary 65,409,OOO r02 Electoral Commission(EC) 31,O57,181 103 Inspector General of Government's Office(IGG) 44,2tt,900 104 Parliamentary Commission(PARl) 378,011 105 Law Reform Commission(LRC) 477,97t 106 Uganda Human Rights Commission (UHRC) 557,370 \ 107 Uganda Aids Commission (UAC) 10,813,050 J ros National Planning Authority(NPA) 263394 109 Uganda National Meteorological Authority (UNMA) 2,9L5,290 Uganda Industrial Research Institute (UIRI) 110 450,000 National Curriculum Development Centre (NCDC) 111 64,770 tL2 Directorate of Ethics and Inteerity(DEI) 1,760,350,338 113 Uganda National Roads Authority (UNRA) 7r,t48,960 tt4 Uganda Cancer Institute (UCI) 1oo,839,776 Uganda Heart Institute (UHI) 115 5,996,786 r 116 Uganda National Medical Stores 43,180 Uganda Tourism Board (UTB) t-trz 1,320,300 119 Uganda Registration Services Bureau (URSB) 3,460,s38 r20 National Citizenship and Immigration Control(NCIC) "M bE&-

Thank you very much for giving way. I just want to give Hon. Silas and Hon. Nandala information. Clause 60(a) concerns the labour force that is in industrial parks and free zones. We do not expect to have foreigners taking up a huge percentage. Most of the labour force here are locals. They are the casual labourers who are doing daily work; 80 per cent is quite okay.

And he is from an industrial area.

13299 THE ELEVENTH PARLIAMENT OF UGANDA MONDAY, 6 MAY 2024 (c) “un-denatured spirits” means spirits that are not mixed with any substance to render the spirit unfit for human consumption or capable of being rendered unfit for human consumption and includes natural spirits or alcoholic beverages made from natural spirits that are fit for human consumption;” “vegetable juice” means unfermented liquid extracted from an edible part of a vegetable whether the extracted liquid is diluted or not;” The committee observed that the above mentioned items are not currently defined or taxed in the Act, and the provision is intended to clarify and remove any ambiguity regarding the definitions of fruit juice, powder for reconstitution into beer, un-denatured spirits and vegetable juice, for tax purposes. The committee was cognizant of Section 10(2) of the Excise Duty Act, which provides that where Excise Duty has been paid are converted into excisable goods liable for excise duty, the converted excisable goods shall be liable only to the difference between the excise duty on the converted goods, and the excise duty originally paid before the conversion. As such, the committee found no merit in excluding pulp and puree for industrial use, from the definition of fruit juice. Recommendation The committee recommends the definition of fruit juice, powder for reconstitution into beer, un-denatured spirits and vegetable juice, be adopted as part of the Bill. Clause 3 Amendment of the second schedule of the Act Clause 3 of the Bill seeks to amend the second schedule of the Act, which provides for excise duty in respect of excisable goods and services, as follows. a. To lower the excise duty imposed on opaque beer from 20 per cent or Shs 230 per litre, whichever is higher, to 10 per cent or Shs 150 per litre, whichever is higher. The committee observed that the proposed amendment seeks to lower the excise duty on opaque beer, and since opaque beer is made primarily from locally sourced raw materials, the amendment will promote the utilisation of the locally sourced raw materials and cause a reduction of the excise duty levied on the other alcoholic beverages – kombuchas – will provide an incentive to produce and sell products competitively. We, therefore, as a committee, recommend that the proposal be passed as part of the Bill. b. To lower the excise duty imposed on any other alcoholic beverage locally produced from 20 per cent or Shs 230 per litre, whichever is higher, to 10 per cent or Shs 150 per litre, whichever is higher. The committee observed that the proposed amendment seeks to lower the tax rate on any other alcoholic beverage locally produced. This amendment will promote the utilisation of locally sourced raw materials and increase tax compliance. The committee further observed that during the debate on the report of the committee on “The Excise Duty (Amendment) Bill, 2023” the House recommended that the rate applicable to other alcoholic beverages – kombuchas – should be lowered to the same rate as opaque beer, which uses similar locally sourced raw materials. Therefore, the committee recommends that the proposal is adopted subject to amendment on the duty rate from 12 to 10 per cent. c. To introduce a new excisable good of powder for reconstitution into beer, at a fixed rate of Shs 2,500 per kilogramme. The committee recommends that the clause be passed as part of the Bill. d. To repeal the provision of the undenatured spirits made from locally produced raw materials used in the production of disinfectants and sanitisers for the prevention of the spread of COVID-19.

You cannot have a timeframe for investigations. Minister, Hon. Esther- THE MINISTER OF STATE FOR GEN - DER, LABOUR AND SOCIAL DEVELOP - MENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) (Ms Esther Anyakun): Thank you, Madam Speaker, for the thought of giving our colleague a moment of silence. It gives all of us a deep thought about the tremendous job that he did for this country. Uganda will celebrate International Labour Day on Wednesday 1 May 2024 to appreciate workers’ contributions to national development and raise awareness about workers’ rights and responsibilities. The International Labour Day is a globally recognised public holiday which originated from 19th century labour day union movements in the United States. May 1st was designated as a day to commemorate those who died in the struggle for improved working conditions. In Uganda, May 1st will be marked by ceremonies at national, city, and district levels. The theme for this year’s National Labour Day is: “Improving Access to Labour Justice: A Prerequisite for Increased Productivity.”

13144 SUPPLEMENTARY SCHEDULE NO.2 FOR FY 2023/2024 Access to labour justice is a fundamental right, essential for maintaining a fair and equitable labour market, protecting workers from exploitation and unfair treatment, and promoting compliance with labour laws. The theme highlights the importance of ensuring that workers have access to fair and effective mechanisms for resolving disputes and grievances in their workplaces, which in turn contributes to increased productivity and economic growth. The Government of Uganda has established a comprehensive legal and policy framework to enhance access to labour justice. Key legislations include the National Employment Act, 2006, the Occupational Safety and Health Act, 2006, Workers Compensation Act, Cap 225, the Labour Disputes (Arbitration and Settlement) (Amendment) Act 2021, the National Social Security Fund Act, Cap 222 (as amended), and the Labour Unions Act, 2006. These provide a framework for dispute resolution and prevention. The institutional framework comprises of Labour officers spread in all districts, cities and municipalities serving as quasi-courts of the first instance on labour matters. In addition, the Industrial Court is functional as a referral court for labour disputes. Workers in Uganda face challenges in accessing labour justice despite existing frameworks. Issues such as unfair dismissal, unpaid wages and unsafe working conditions are widespread, particularly among vulnerable groups like women, youth and informal sector workers. Many employees do not contribute to social protection, leaving workers financially insecure in old age. The National Labour Force Survey 202l indicates that many workers are exposed to hazardous working conditions, including exposure to dust, fumes and violence, with many lacking protective gear. While 898,000 workers had suffered accidents/ injuries in the 12 months preceding the survey, data from the Insurance Regulatory Authority’s Annual Insurance Market Report 2022, reveals that only 30,555 lives were insured under 2,347 Workers’ Compensation Policies in 2022. The Ministry of Gender, Labour and Social Development plays a crucial role in ensuring access to labour justice by formulating policies, enforcing legislation, overseeing dispute resolution mechanisms, providing capacity building and awareness programme and collaborating with stakeholders to promote fair labour practices. However, the ministry faces constraints such as a lack of a web-based system and national database for labour statistics, an integrated case management system for labour complaints and dispute settlement, as well as staffing shortages, insufficient tools, logistics and court facilities. As we commemorate International Labour Day, it is important to recognise and address the barriers that hinder workers from seeking redress for workplace disputes. The ministry is committed to enhancing access to labour justice and seeks the support of Parliament in addressing the constraints. Madam Speaker, the ministry, in collaboration with social partners, has planned several pre- Labour Day activities, including the 2 nd Annual Labour Convention and Expo 2024, focusing on enhancing access to labour justice, field visits to workplaces, tree planting, exhibitions for innovative enterprises and public awareness campaigns through various media channels to educate workers about accessing mechanisms for labour justice. Madam Speaker, I am pleased to announce that the national Labour Day celebrations will be held at Mukabura Grounds, St Leo’s College in Fort Portal City. We are honoured to have His Excellency the President of the Republic of Uganda presiding over the function, and we extend a warm invitation to all Members of Parliament to attend. The event will be broadcast live on major TV stations, allowing all Ugandans to join in the celebration of our country’s labour force. I thank you all. For God and my Country. [Ms Anyakun] MINISTERIAL STATEMENTS

No, we do not. We have the laws. We are looking for a policy and the regulations that cover these laws. This is causing challenges in their enforceability. The workers in these industries, Madam Speaker, especially in the foreign investment industries, are facing many challenges. We have come up, once and again, to call for the Government to ensure they enforce the labour rights in these industries. Worker’s arms are being cut off, workers are being killed and there is no response whatsoever. They are not being paid. So, as we celebrate this day, emphasis should be put on enforcing the rights of these workers. Madam Speaker, we passed the Employment Bill and it was returned. However, the Committee on Gender, Labour and Social Development is facing a challenge in that we do not have this Bill before us. So, we cannot go forward with this Bill. The Occupational Safety and Health (Amendment) Bill, 2023 (OSH Bill) is still under process, and it is one of the issues that could cater for the labour rights that we are celebrating tomorrow. Lastly, as we celebrate this day, we should really look so much at the labourers because the workers are not going to be able to go to the celebration grounds. However, they have rights that need to be enforced. They have issues that need to be worked on. Access to labour justice is very crucial. Madam Speaker, we have industrial courts. However, many of our workers do not know that these industrial courts exist. They do not know that they can run to these courts to access justice when they have issues. On mechanisms of reporting cases, Madam Speaker, I think we need to come up with an online system because workers cannot keep running to Kampala to access the courts. If there is an online system that can ensure that these workers can report their cases and they can be fast-tracked by any person, it would be good to ensure enforceability of these rights. Information from my fellow minister, Madam Speaker. (Interruption)

Madam Speaker, there are a number of laws – actually, there is a saying that the laws are made in Uganda and implemented elsewhere. That defeats logic and the purpose. Like for that law which I have just mentioned, if it was implemented in this country, we would have increased productivity and industrial harmony and all would be well in our economy. I beg to thank the minister. I also thank you for giving me this opportunity. I invite Members to move to Fort Portal and we celebrate together. I also urge that tree planting – as you emphasised, Madam Speaker – be emphasised during this Labour Day celebrations so that we plant more trees to avert the drastic effects of climate change.

Madam Speaker, let me start by correcting this. We normally say “celebrations of Labour Day”, but in the real sense, they are not celebrations. We commemorate the death of those who struggled for the workers. Otherwise, if we are to celebrate, we have to put a list of achievements of what we have achieved. Nevertheless, we do both at the same time. Madam Speaker, it is good that we have just talked about the Lubowa Specialised Hospital project. I am not bringing the Lubowa case here now, but I want to use it as an example. The theme is “Access to Labour Justice.” If our leaders, the Leader of the Opposition and Members of Parliament could be denied entry, how do we expect workers’ leaders to enter industries? (Applause) I think this is where we need to concentrate. When we are there, we should not simply speak, but should put action into what we want to implement. Madam Speaker, you heard the shadow minister talking about the Industrial Court. Recently, we had a workshop. We are complaining that MINISTERIAL STATEMENTS

13147 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 30 APRIL 2024 it is high time we came up with the Industrial Court of Appeal. This is because three quarters of all cases in the Industrial Court are won by the workers. However, after that, they appeal to other colonial courts, and there the workers will never achieve anything. I think if we are to save the workers of this country, we need another mechanism in order to achieve that. My colleagues talked about the minimum wage, but I think this side is about protection of the investors, not the workers. (Applause) Because wherever we have gone, the minimum wage is a requirement. It has nothing to do with deterring the investors from coming. It is the lowest point, saying that do not exploit where you have gone. That is the meaning of the minimum wage. However, it is now history and we have repeated that. Some of us are no longer singing it because it seems that it is impossible to implement. My prayer is that you, my colleagues, are being invited to come on this Labour Day, wherever you will be, either in Fort Portal or in your districts. Let us all come and work together to protect the labourers of this country. Thank you very much.

13163 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 30 APRIL 2024 Namugongo. They are going to receive Shs 1,087,915,708. ii) Support to the Anglican Church (Mid- Western Uganda Cluster Diocese): Shs 1,087,915,708. iii) Support to the Uganda Muslim Site in Namugongo Shs 200 million. iv) Co-ordination by the National Organising Committee: Shs 100 million. v) Ministry of Health: Shs 103,514,000. vi) Kira Municipality: Shs 66,340,000 vii) National Water and Sewerage Corporation: Shs 204,314,584. viii) Security during that day Shs 150 million, totalling to Shs 3 billion. The committee recommends approval of Shs 3 billion to Vote 018 - Ministry of Gender, Labour and Social Development, to facilitate the commemoration of Uganda Martyrs’ Day celebrations this year. Vote 019 - Ministry of Water and Environment: Shs 11.559 billion. This money is funding for farm income enhancement and forest conservation programme funded by the African Development Bank that had been planned to end on 30 June 2023, but was extended to 30 June 2024 to enable completion of the activities. These activities include: i) Construction of the remaining works for gravity-fed irrigation schemes, infrastructure and facilities for Wadelai, purchase of farm tractors to five schemes, procurement of assorted tree seedlings distributed to Mubuku-2, Manafwa, Ngenge, Tochi, and Wadelai for sustainable forest management watershed areas. Procurement of apiculture value-addition equipment and post-harvest handling equipment, that is the rice equipment and to distribute them to farmers. Facilitating promotion of aquaculture and horticulture practices in the five schemes, including training and equipping farmers to train in agribusiness skills on use, operation and maintenance, facilitating linkage between farmers to market in the five irrigation schemes. Madam Speaker, the committee recommends approval of Shs 11.559 billion to Vote 019 - Ministry of Water and Environment, for Farm Income Enhancement and Forest Conservation Programme funded by the African Development Bank. Vote 122 - Kampala Capital City Authority, Shs 13.69 billion from stronger performance of the Non-Tax Revenue(NTR) activities. They were returning their collections. This is to cater for the wage shortfalls of the city cleaning casual workforce. The committee recommends approval of Shs 13.69 billion to Vote 122 Kampala Capital City Authority to cater for the wage shortfalls of the city cleaning casual workforce. Vote 114 - Uganda Police Force. Shs 9.156 billion is arising out of compensation for Uganda Police property affected by the Kampala flyover construction and road upgrading project. This is to enable the Vote to procure land and settle the affected staff to other sites. The details are in Table 5, Madam Speaker. Shs 9.156 billion- Vote 144 for Uganda Police Force -(Interjections)- Yes, the flyover land. The committee recommends approval of that money for compensation of Uganda Police Force property affected by the Kampala flyover construction and road upgrading project. Vote 167 - Science, Technology and Innovation. Shs 578.4 billion to support the Strategic Pharmaceutical Industrial Investment under DEI Biopharma Ltd to enable them to complete the business production and ensure it comfortably meets its debt obligations and operational requirements. The Government has embarked on the process of acquisition of equity in DEI Biopharma Ltd as a strategic intervention to increase the production of pharmaceutical drugs locally. It should be noted that the Ministry of Science, Technology and Innovation provided a written commitment and a copy of the letter is attached

13104 MINISTERIAL STATEMENT The total requirement for the requisite road equipment units for this purpose is $70 million, which we hope can be funded through debt financing using the same scheme under which we got the 1,115 units in 2017. My ministry is in the process of procuring road construction equipment for the new districts, as I have said, but we need another Shs 29 billion for the vibro rollers, tippers and water bowsers. These were not included in the tranche which you gave us last time. We shall continue engaging through both the Budget Committee, Committee on Physical Infrastructure, and the Ministry of Finance, Planning, and Economic Development to avail Shs 29 billion so that we can complete the purchase. Zonal equipment centres Madam Speaker, the zonal equipment centres are currently housed within the premises of the regional mechanical workshops. The ministry had planned to create nine zonal centres in Moroto, Mbale, Jinja, Gulu, Arua, Luweero, Hoima, Mbarara, and Kabale at an estimated cost of Shs 45 billion. We shall continue engaging the Ministry of Finance, Planning and Economic Development on this endeavour. The zonal equipment centres operate shared road equipment such as bulldozers, excavators, backhoe loaders, self-loaders and low beds. While the shared equipment is insufficient to cater for the requirements of the entire country, its availability has been greatly reduced due to insufficient maintenance funding. That is a requirement for additional money. Mechanical Engineering Training and Advisory Centre (METRAC) Madam Speaker, since 2017 when the ministry acquired the new equipment, the ministry has implemented several regional training sessions for district operators. While this training format was not sustainable, it was the only option given the circumstances. In 20l8, the Government of Japan, through the United Nations Industrial Development Organisation (UNIDO), gave a grant of $2.3 million to the Government of Uganda for the construction of the Mechanical Engineering Training and Advisory Centre in Luwero. Phase I of the project, comprising a gatehouse, classroom block, maintenance block, and administration block, have been completed and the project has been handed over. It is just a few kilometres from Luweero town. Here, we shall train and retrain operators so that we have - because the machine performance will be as good as the man behind the operation. If we have a bad operator – and, in most cases, what we have seen is that people have drivers, not operators. In this centre, we are going to train operators and we are working with the Ministry of Education and Sports so that they can also be tested under the Directorate of Industrial Training (DIT) and given certificates of equivalent so that they can be able to be employed outside. Madam Speaker, phase 2 of METRAC requires Shs 9.8 billion, which began this financial year. So far, the Government has availed Shs 1 billion for the construction of a few of the amenities. Mt Elgon Labour-Based Training Centre Madam Speaker, Mt Elgon Labour-based Training Centre (MELTC) is a national training centre under the Ministry of Works and Transport for applying labour-based technology (LBT) in the rehabilitation and maintenance of national, district, urban and community access roads. The training centre is located 20km from Mbale City, along the Mbale-Budadiri Road and adjacent to Uganda Technical College, Elgon. Madam Speaker, MELTC provides training and capacity building in developing, maintaining, and utilising critical road infrastructure assets in the District, Urban, and Community Access Road (DUCAR). Its contribution to the DUCAR network includes:

Thank you, Madam Speaker. Indeed, I can see the anxiety of Members and hopefully, this statement will put to rest that anxiety. At the 14 th Sitting of the 3 rd Meeting of the 3 rd Session of the 11 th Parliament, held on Wednesday, 28 th February 2024, Hon. Mbwatekamwa Gaffa, a Member of Parliament of Igara West, Bushenyi District raised a matter regarding a letter reportedly from the Minister of Internal Affairs that appeared on social media calling for a consultative meeting on the relocation of Luzira prisons to create space for an investment opportunity to an external investor. I would like to respond as follows: Luzira group of prisons was the first prison set up in Uganda by the colonial government in the 1920s. By then, the population of Uganda was very low, estimated at 3,071,608 persons (this is according to the Colonial Annual Report number 1112 of December 1920). At that time, the Luzira area was peri-urban with almost no developed infrastructure. The prison’s infrastructure was the most developed and it suited that location. The principal consideration at the time was security as Luzira could only be accessed from one point. Over time, the prison’s infrastructure became dilapidated while the neighbourhood continued to improve and modernise. A modern secondary school and hospital (Bishop Cyprian Kihangire) was set up on 20 acres of the prison land. Another sixty-four (64) acres that were used by the prisons for crop and livestock farming became an industrial park with industries such as Quality Chemicals Limited, Polysack Limited, U-Fresh, Nile Ply, and Master Wood. High rise private property has also sprung up in the immediate neighbourhood of the prison. Types of prisons in Luzira Prisons are classified according to the purpose they serve, either as reception centres (that receive and hold suspects awaiting trial) or rehabilitation centres (those that receive convicts from the reception centres for rehabilitation and reform). Prisons are also categorised by the type of offenders they hold and the level of security required: maximum security, high security, medium and low security and open prisons. Luzira group of prisons was established to absorb all these categories of prisons as indicated in the table that follows and the table includes: 1. We have Uganda Prisons Upper - it is in the category of maximum security prison and it is both a reception and rehabilitation centre. 2. Uganda Prison, Murchison Bay - it is high security prison, a reception and rehabilitation centre. 3. Kampala Remand Prison - a low-security prison, used as a reception centre.

12817 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 17 APRIL 2024 Finally, Madam Speaker, the committee recommends as follows: i) That the Uganda National Meteorological Authority be retained as a semi- autonomous entity and not mainstreamed into the ministry responsible for meteorology as proposed in the Bill; ii) That as a landlocked country, Uganda should focus more on developing its aviation industry rather than taking steps that might stagnate its aviation industrial development; iii) UNMA should generate more revenue that surpasses its current budget of Shs 18 billion by charging all user departments for its services just as other agencies like the National Water and Sewerage Corporation, National Forestry Authority (NFA), and other government agencies do. Madam Speaker, I beg to submit. (Applause)

12606 SECTORAL COMMITTEE REPORTS Madam Speaker, bullet (7) on page 56 is on incomplete construction of oxygen plants. There is a table there, which shows the status of oxygen plants across the regional referral hospitals. The committee recommends that: 1. The UPDF should finalise with the construction and equipping of all oxygen manufacturing plants at all regional referral hospitals; and 2. The Government should provide an additional Shs 1.5 billion for the maintenance of oxygen plants at regional referral hospitals. Unstable power supply Madam Speaker, the issue of unstable power supply is across all health institutions. The committee recommends that: 1. The Ministry of Health and Ministry of Energy and Mineral Development should ensure that hospitals are connected to dedicated power lines and charged industrial rates; 2. A cost-benefit analysis of solar-powered hospitals should be undertaken by the Ministry of Health and the Ministry of Energy and Mineral Development; 3. Shs 9 billion should be provided to the Ministry of Health for procurement of power stabilisers for 15 regional referral hospitals. To put this into context, there was a power surge last year at the Uganda Heart Institute. People who were on critical life support machines were left in a very critical state and we had to borrow machines, overnight, from two neighbouring countries, thanks to air transport. When the Ministry of Finance, Planning and Economic Development gave us money to replace the machines, we returned them, in the spirit of Pan-Africanism. However, this should not be the case. We need these power stabilisers. Madam Speaker, on page 58, Table 21 shows the incomplete projects in regional referral hospitals. We put it in table form to show you that there are projects that we started in 2017, but have not been completed. There are many challenges, in terms of variation in costs, due to inflation and contractors being on site outside their contract duration, which can present legal challenges. The committee, therefore, recommends that: 1. The Ministry of Health should not authorise any new project for regional referral hospitals until the stagnated projects are complete and fit for use. (Applause) For any exceptional case, Parliament should be provided with evidence of availability of funding until completion; 2. The Government should avail the Shs 79.123 billion required to complete the listed projects. Going forward, all new projects should be undertaken with consultation from the Ministry of Finance, Planning and Economic Development and Ministry of Health. Madam Speaker, when you look at that table, Masaka Hospital, for example, requires Shs 590 million - that is the cost of a brand new car - to complete its Intensive Care Unit. Gulu requires about Shs 3 billion to finish the interns’ hostel – and so forth. So, we can start with the low-hanging fruits. General observations Non-tax revenue collections This is self-explanatory, but on bullet (1), under non-tax revenue collections, the committee recommends that: 1. The Ministry of Finance should adjust the NTR ceiling and also return NTR funds to the hospitals; 2. Funds collected from NTR can be used by hospitals to improve service delivery, especially in the private wing, and to maintain hospital equipment.

The other comment I want to make in response to his point of clarification is that we give you a budget of this much and also indicate the source of funding. Part of the funding – I think this budget will be 55 per cent domestic resources. We also indicate that there are external sources; grants and so forth. Therefore, for the loans, which we pass here, we also budget for them. When you see that we want to do a data centre, if you go into the details, you will find it is related to the loan that we passed. What we pass here in the Budget is not only for the domestic resources. Even those loans are captured. So, there is no duplication. Lastly, on what you raised, we discuss with the Ministry of Science, Technology and Innovation and the Ministry of Trade, Industry and Cooperatives because there are industrial and science parks, which are being constructed. Also from our side, there are the Information Technology/Business Processing Outsourcing (IT/BPO) parks. In some situations, we can just use one space – we put an industrial park and also an IT park in between. We are harmonised and we connect so that there is no duplication and wastage of resources. I would like to thank you for supporting UBC. Let us all support it as a national broadcaster and provide resources. Like Hon. Odur said, many national broadcasters, including BBC, are funded by the governments. You do not allow them to compete with the private sector. Yes, they can do some competition but governments invest resources because, sometimes, they communicate what the private sector may not communicate because they do not attract any commercial value as such. I think the rest of the issues, Madam Speaker, were comments for us to take as a ministry.

Thank you, Madam Speaker. We request for Shs 4.8 billion to roll out the model villages so that each of the regions can receive two per annum. The skilling programme We recommend that more common user facilities be provided to support the 19 established industrial hubs plus the training centres in Kampala. Uganda AIDS Commission As guided that I should read specifically the recommendations, the Uganda AIDS Commission requires an extra Shs 1.3 billion, to facilitate the establishment of more six regional offices. Uganda Industrial Research Institute; For the operationalisation of this centre, we are recommending Shs 26.03 billion. Industrial and technological incubation; We are recommending for Shs 1.9 billion. Technology, innovation, and value addition; We have a gap of Shs 2.99 billion. Research and development; We are recommending for Shs 4.97 billion. Ethics and integrity; On page 32, we have a gap of Shs 3.85 billion. Internal Security Organisation; Madam Speaker, on page 35, we have a gap of Shs 42.9 billion. Establishment of technical infrastructure; We have a gap of Shs 26.6 billion, yet we require Shs 12.493 billion to enable the Internal Security Organisation to effectively facilitate their operations for timely information gathering. Construction of the Institute for Security and Strategic Studies; What we require to fix this gap is Shs 22.964 billion. External Security Organisation; We have a bulky report but as guided, let us go to page 40. Foreign Intelligence Collection; We have a gap of Shs 3.187 billion and that is what we are requiring. Retooling of External Security Organisation; We have a gap of Shs 28.883 billion. Budget enhancement to administration and finance; The details are provided and we are recommending for Shs 17.724 billion. Construction of External Security Organisation Headquarters; We are requesting for Shs 30.781 billion. The details are provided in the report. Science, Technology and Innovation; As guided, the recommendations start from pages 44 to 45. Establishment of Uganda’s Bioscience Park; We are requesting for Shs 44 billion to start the establishment. Inadequate funding for Uganda National Council for Science and Technology; Here we are requesting for Shs 3.5 billion. Space Programme; Allow me to explain something because there was a question –

Yes, Madam Speaker. The Government of Uganda has made interventions to ensure that we also get to space. The first initiative was when we sent our three students to Japan. The programme, or the course content, included a demonstration component. The demonstration component had a lifespan of one year, which has ended. However, we also sent our students to China, and four of them are now equipped; they have the knowledge. This is a new attempt to ensure that we can have space exploration of, at least, five years. The first was a demonstration. Therefore, we shall be in space for five years when we finance this. What we require is Shs 13 billion. On priority setting in science, technology and innovation interventions, Madam Speaker, we made recommendations that re-prioritisation be undertaken because we have too many projects and, therefore, we are spreading our resources thin though this is not helping us to achieve commercialisation as expected. Anti-tick vaccine clinical trials We are requesting for Shs 48.0 billion to do this. We met this team and we appreciate what they have done. Commercialisation of sericulture We are requesting for Shs 17.88 billion for the commercialisation of sericulture in two areas – Sheema and Kween, where we have already procured some equipment. We expect these other sites in the other parts of the country to support the two sites so that we start to produce silk. National Science, Technology, Engineering and Innovation Centre For the operationalisation of the heavy investment by the Government, we are requesting for Shs 19.4 billion. Pathogen economy Madam Speaker, we are requesting for Shs 29.83 billion to support the pathogen economy – research and development component. Presidential Initiative on Banana Industrial Development This is one of our babies, with a lot of investment so far. We are requesting that we give them Shs 10 billion. We visited the site and I encourage Members to also visit this site. Kiira Motors Corporation Madam Speaker, this is one of our best projects. To facilitate them to transit to commercialisation, we are requesting for Shs 134.14 billion. They are doing very good work. So far, we have assembled and supported the production of 21 buses. Tondeka is moving all around Kampala. I believe many people have seen it. This project is one of our best. Proposed budget allocation to the innovation fund We recommend that the Shs 37.5 billion, which is already in the Medium-term Expenditure Frameworks (MTEF) ceiling, be for the existing projects, but not spread to other components, which are going to be new. We also recommend that Shs 20 billion be provided to support research development in areas of the existing projects if new challenges are discovered in the course of moving from one stage to the other. Madam Speaker, we have recommended for Shs 20 billion so that if there are other disasters or emergencies, like how COVID-19 came, we will be prepared. Ministry for KCCA and Metropolitan Affairs Our specific recommendations start from page 57. We are recommending Shs 4.2 billion to support physical planning and urbanisation.

Thank you, Madam Speaker. Uganda Industrial Research Institute Under recurrent expenditure, we are recommending Shs 25,299,000,000 Development expenditure, we are requesting Shs 6,700,000,000. Ethics and Integrity Under recurrent expenditure, we are recommending for Shs 23,662,000,000 Development Expenditure, we are requesting for Shs 150 million. Kampala Capital City Authority Recurrent expenditure, we are requesting Shs 227,919,000,000 Development expenditure, we are recommending Shs 606,019,000,000. Internal Security Organisation Under recurrent expenditure, we are recommending Shs 194,866,000,000 Development expenditure, we are recommending for Shs 10,680,000,000. External Security Organisation Under recurrent expenditure, we are requesting Shs 107,087,000,000 Development expenditure we are requesting for Shs 1,003,000,000. Science, technology and innovations Under recurrent expenditure, we are proposing Shs 140,102,000,000 Development expenditure, we are recommending Shs 2,998,000,000. Madam Speaker and colleagues, I beg to submit.

Thank you for your guidance, Madam Speaker. We shall comply, as a committee. Vote 138: Uganda Investment Authority (UIA) Policy and budgetary recommendations i. Surveying, titling and securing all industrial and business parks Madam Speaker, the UIA has secured a lot of land across the country and they are requiring an additional Shs 6.5 billion for securing and fencing the industrial parks across the country and that is the recommendation of the committee. Financing activities of the owner’s engineer for the Financial Year 2024/2025 The investment authority requires Shs 10 billion to finance the activities of the owner’s engineer. This is the supervisor in the industrial park for years. He has worked without pay; it is more or less arrears. Vote 141: Uganda Revenue Authority On total revenue projection for Shs 31.5744 trillion - I think I have already commented on it. Budget cut on wage The Minister of Finance, Planning and Economic Development told us that they made a budget cut because there was a Shs 55.73 billion that had been provided in the last two financial years but was not used and we think that this should be reinstated so that the URA can recruit more staff. Development of the oil and gas monitoring system The authority requires additional Shs 9.16 billion and the committee recommends that this should be provided in the next Financial Year 2024/2025 and the remaining Shs 22.34 billion across the medium-term to develop an oil and gas monitoring system and position itself to process oil and gas information. Vote 143: Uganda Bureau of Statistics What is outstanding is the tax arrears being accrued during procurement of census tablets. The bureau informed the committee that they need Shs 23.67 billion to be provided for the tax arrears, and we do recommend the same to be provided for the bureau.

Mr Speaker, I have two things to commend the committee for. One of them is showing sources for reallocation. They have done a commendable job. The committee went beyond just recommending that money be added. Added from where? I think it is a learning for the rest of the committees that when we move money, we should move from one place to another. Thank you. The second reason I would like to commend the committee is the brilliant idea to provide funding for UTB to do international advertising. As honourable colleagues have already explained, projecting a correct and positive image of our country is indeed critical for the tourism industry to grow. Mr Speaker, I know you are listening – (Laughter) There are two policy areas of concern to me that have come out of this report. One of them is on Uganda Wildlife Authority (UWA). The committee gives a clear justification as to why UWA should be added more money. However, in my view, one of those justifications should not be that UWA is making a lot more money. It should not be the amount of money the agency is making to determine how much we should give. It should be the need; how much is needed for efficiency, how much is needed to get the value we want, rather than how much they are generating. If we consider how much they are generating, then the Uganda Lotteries and Gaming Board will ask for more, because they also generate. Uganda Revenue Authority will also ask for more because they generate. It should not be part of the things we use for discussing such matters in this House. Policy issue number two is about the Uganda Export Promotion Board. How about something called the Presidential Advisory Committee on Exports and Industrial Development (PACEID)? How do the two relate? The committee recommends that we add more Shs 20 billion to the Uganda Export Promotion Board to do its work. We acknowledge the need to promote exports, but at a time like this, should we put money on what we know is working or put money on a trial and error or on an inexistent board? I have a problem with that. I would rather we put the Shs 20 billion on what we see is working other than on a gamble. I submit. Thank you.

Thank you, committee chairperson and Members for the issues you have raised. Uganda Export Promotion Board vis-a-vis the Presidential Initiative on Exports and Industrial Development, these two institutions do work together to achieve the objective of increasing our exports to now, next year, 7 billion. We are working in harmony and

12512 SECTORAL C O MMITTEE R E P O R TS I support the position of the Speaker that we should split the committee into two, that is, trade and tourism. Somebody raised the issue of sugar structures; we brought the Bill here and you requested us to go and do more consultations. We are glad to hear that you need it back and we are ready to return it. Hon. Isingoma, on the issue of cooperatives, we have now registered 10,638 primary cooperatives in Uganda and we are working out a strategy to re-establish a cooperative bank. We are now at Cabinet level and we will be coming to inform the Parliament on how far we have gone. I appreciate the committee for creating a separate vote for the Uganda Development Corporation (UDC), but I want to urge Parliament again that creating a vote alone without appropriating money to it, won’t let us achieve much. Honourable colleagues, we have a strategy of value addition, import substitution and export promotion. We have agreed that we should increase our Gross Domestic Product (GDP) from currently Shs 55 billion to Shs 500 billion in the next five years. To achieve this, we must add value to the things that we are producing and our contribution to the industrial sector now stands at 27.4 per cent of the national GDP. To achieve this value addition and industrialisation, we must invest in sectors that actually will achieve that objective, and UDC is one of the arms of the Government that can help us achieve industrialisation. We need to process our cocoa in Kasese, starch in Northern Uganda, Irish potatoes in Southern Uganda and fruits across the country. We must end the importation of old clothes to Uganda gradually and to do this, we need resources. Yes, the private sector is moving ahead to do a lot of things that we are seeing, but some sectors are not very attractive to the private sector and some of these sectors can be worked out through investment in UDC. Therefore, while the creation of the Vote is important, appropriating money to it is more important. I urge the Members to do that. The acting Leader of the Opposition raised the issue of the removal of trade barriers. Indeed, we are doing that through the East African Community and African Continental Free Trade Area - (Mr Nsereko rose_)

12519 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 11 APRIL 2024 146 Districts/cities women’s councils supported at national level to commemorate International Women’s Day 2025 (Shs 3,000,000 per district/ city). The Ministry of Finance, Planning and Economic Development should avail Shs 1.805 billion to the National Women’s Council to enable them to support successful Women’s Day celebrations at districts, cities and municipality levels. On supporting National Women’s Council to execute their mandate through the Women’s Council’s institutional support, we recommend that Shs 0.638 billion be availed to the National Women’s Council to enable them undertake the successful implementation of government programmes. 11.0 National Youth Council There is a recommendation that Shs 3.434 billion be availed by the Ministry of Finance, Planning and Economic Development for the procurement of 202 motorcycles for the district, city and municipality youth leaders to support them with supervision of beneficiary youth groups in Youth Livelihood Programme and PDM for better recovery of funds and effective participation. 12.0 National Children’s Authority Conducting a national mapping exercise for child-headed families in Uganda Our recommendation is for the Ministry of Finance to avail Shs 300 million to enable the National Children Authority to conduct a national mapping exercise for the child-headed families in Uganda to establish their level of vulnerability and provide statistics for planning and intervention. Carrying out a national survey on the street children phenomenon to inform the national programme on the elimination of street children in Uganda This requires that Shs 0.250 billion be availed by the Ministry of Finance, Planning and Economic Development so that it is carried out. 13.0 The Industrial Court Recruitment of three judges of the Industrial Court We recommend that the Ministry of Finance, Planning and Economic Development avails Shs 1.350 billion to cater for the recruitment of the three Industrial Court judges. Recruitment of staff within the approved public service structure The Ministry of Finance, Planning and Economic Development should avail Shs 0.522 billion for the recruitment of 45 staff members to fill the vacancies in the structure. Provision of adequate space/premises for the Industrial Court We recommend that Shs 1.2 billion be availed by the Ministry of Finance, Planning and Economic Development to cater for adequate space premises for the Industrial Court to enable it to carry out its mandate effectively. Digitalisation of court halls Mr Speaker, our recommendation is for the Ministry of Finance, Planning and Economic Development to provide Shs 4 billion to the Industrial Court to enable it to develop and cater for the digitalisation of its court halls. 14.0 Uganda National Cultural Centre (UNCC) The subventions On the subventions under National Cultural Centre, we recommend that the finance ministry avails Shs 9.126 billion to UNCC to enable it to pay for salaries of its staff, operation expenses and gratuity arrears.

Thank you, Mr Speaker. I take this opportunity to thank the committee chairperson for the report. Mr Speaker, there are a number of unfunded priorities, one of them being empowering the Industrial Court. The Industrial Court has only two judges, and this makes workers with disputes to take over nine years waiting for their cases, yet this court is meant to have many serious issues and timeliness is one of the core aspects. I beg that - it is just Shs 1.35 billion – the money be found and we empower this court so that we provide justice for our workers. Secondly, Mr Speaker, there is an acute understaffing and the minister looked at Shs 522 billion. The court has the panelists and then the staff – the key staff. The staffing level is very low, actually below 20 per cent, which is a very serious matter. This fails on the compliance issues, Uganda being an International Labour Organisation constituency. The other aspect is digitalisation. The courts, when they are going to the regional circuits, have to carry a truckful of files and move with them, yet these things could be digitalised so that, at least, by a click of a button, a file is found and the matter is handled. It is Shs 4 billion which is proposed and unfunded here. I wish, Mr Speaker, this could be found and we empower this court so that we become compliant, have industrial harmony and increase productivity. Lastly, Mr Speaker is the issue of the cultural institutions. You have ever been to those ends of the Nkolera Kida Kyonka in Bugwere. The fights are too much over the institution of Waikumbania. When you talk of PDM, most people do not even form SACCOs together because they are fighting over the Waikumbania. I do not know whether the ministry has a solution, because this has taken over 10 years now. I beg to submit.

Mr Speaker, I would like to conclude with the Industrial Court. It is a very important court because it supports all the cases that come from labour officers. They have only two judges yet they need five judges. I was proposing that if its budget being under the Ministry of Gender, Labour and Social Development is disadvantaging them, it is better we move back their agenda to the Judiciary because its budget is protected. Otherwise, they are suffering because they moved their budget under us because that court is under the ministry. It would be very important and unfair that the rest of the judges are enjoying all the privileges under the Judiciary and this court is not. I beg to move and request. Thank you.

I agree with the line minister for that very proactive proposal to this House. I believe that all those judges go through the same law school and have the same qualification. Nobody under the Constitution of Uganda is supposed to get less than what others are getting. In a special way, I thank her for - I do not know whether the proposal is coming too late, but it is never too late for this House to do justice for those judges in the Industrial Court.

Honourable colleagues, let me assign the Attorney-General this issue. Let him come next week and guide this House on this matter. If the budget of the Judiciary is protected, it is statutory, the industrial court, wherever they are and without moving to say we put them under-we can say, it was for all courts and all judicial officers wherever they are. Honourable colleagues, let me not open up this because it might delay us. I now put the question that the report of the sectoral Committee on Gender, Labour and Social Development on the Ministerial Policy Statement and Budget Estimates for the Financial Year 2024/2025 be adopted. (Question put and agreed to.) Report adopted. ( VI ) COMMITTEE ON DEFENCE AND INTERNAL AFFAIRS

The Ministry of Trade, Industry and Cooperatives had an approved budget of UGX 118.264 billion. The Ministry received supplementar5r budget of UGX 51.73 billion hence the approved revised budget was UGX 169.99 billion. Out of the total revised budget, UGX 97.066 billion was released and UGX 93.09 billion was spent. Budget release, Expenditure and Absorption performe d, at 82.600/o, T8.TOo/o and 95.307o respectively. Half Year Physical Performance for Ministry of Trad,e, Industry and Cooperatives FY 2023 l2+. (1) 9 Value Addition Equipment for 11 enterprises across the country procured, Delivered and Installed. (21 Stakeholder consultations on re-establishment of the cooperative bank. (3) 1,065 cooperatives registered; 6 cooperatives inspected; 190 Cooperatives superuised. (41 70 youth cooperative members trained and 20 Cooperatives leaders trained on governance, financial management and gender-based planning. (5) 11 industrial field monitoring and technical guidance visits undertaken in the districts of Kampala, Njeru, Jinja, Buhweju and Nakaseke. (6) Commissioned Mpondwe Market as well as the one stop border at Mpondwe. (71 International Trade Missions conducted. (8) Joint stake engagements with the Key MDAs on Preferential Markets e.g. China, DRC and South Sudan and r'i- --.it. TM (^W h 43 .::trfr l/,r I

Isingiro, Kagadi, Nakaseseke, Nakasongola, Arua, obongi, Kitgum, Lamwo, Kamuli, Iganga, Agago, pader, Amum, and adjumani. (18) 1,800 MSMEs mobilized and sensitized on the importance of formatizing and registration of businesses. Amuru and Adjumani. ( 19) 1 ,550 MSMEs mobilized and sensitized on the importance of product certification, audits, good manufacturing practices and good hygiene practices for enterprises in Agago and pader. (20) Final draft guidelines for development, management and operation of Industrial Parks developed. (21) Draft regulations for scrap metal trade developed. (22) Draft amendment to Licensing Act Regulations devetoped. (23) Development of guidelines for the Eco-certification of industries tabled. (24) Production and trade in the pineappte sub-sector profile Table 12: MTIC Proposed Budget allocation FY 2o24l25 and Variances between Approved and proposed (UGX, Billion| Source.. Semi- A nnual Budge Performance v {, Budget Category FY 20/23124 Budget App Budget Spent by End Dec FY 2024l25 Budget Estimates Variance Between Approved and Proposed Wage 3.248 1.403 2.894 -0.354 Non-lllage 155.589 86.625 LOL.2r9 -54.37 GoU Dev't 1O.826 5.065 I 1.16 0.334 Arrears 0.335 0 0 -0.335 Total Budget 169.998 93.093 t15.273 -54.725 W -{*- fr 45 Report FY 2023/24 & ( eTrl

In FY 2024125, the Ministry has been allocated UGX 2.9 billion for financing its Wage and UGX.101.21 billion for non-wage recurrent expenditures. The Budget for Development Domestic stands at UGX 11.16 billion. The total budget has dropped by UGX 54.725 billion from UGX. t6g.gg billion to UGX ,,tS.2Z billion. The reduction is targely attributed to one-off supplementary budgets to UWRSA (UGX 2 billion), MTAC (UGX 3 billion) and UDC (UGx SO.4 biltion). 6.3 Key Planned Activities for Ministry of Trade, Industry and Cooperatives Fy 202412s. (al Manufacturingprogramme Industry and. Technologg (1) Amendment of the Sugar Act and facititation of National Sugar Stakehotder Council activities. (21 Implementation of climate change measures for mitigation and adaptation of greenhouse gas emissions in the Industrial processes and products use sector. (3) Implementation of the NIP through development of development of the CTA strategr, Industrial database etc. (41 Industrial monitoring and technical field visits conducted in 100 industries across Uganda. (5) Implementation of the NIP through development of development of the CTA strategr, Industrial database etc. (6) Industrial monitoring and technical field visits conducted in 100 industries across Uganda. t l-' v h_ fu,n F 46 iT'. 14+@-;

(2) Popularizing of PDM Marketing strategr and branding and packaging strategies.in the country includes Karamoja and west Nile. (3) Acquiring and scaring up of the use of international recognised bar GIS bar code for promotion of Ugandan products in the market and support L2O MSMEs to formalise their business in south western, Rwenzori, West Nile, and Sebei sub region. (4) Conduct awareness creation in Credit rating mechanisms in Mbale, Soroti, Lira and Gulu to 100 MSMEs in manufacturing sector. (5) Conduct awareness creation in Credit rating mechanisms in Mbale, Soroti, Lira and Gulu to 1oo MSMEs in manufacturing sector. (6) Facilitate, support, Sensitization 120 MSMEs, Youths, women, pLWHA and PWD to formalise their businesses. in West Nile, Rwemzori and Busoga Region. (71 Conduct 3 stakeholder (Academia, SMEs, Policy makers and tegislators) workshop on Circularity and Circular economy (Resource efficiency, cleaner production and industrial in symbiosis in central region. (8) Facilitating, the preparations, Mobilization, training, vetting of 250 MSMEs including women and youth, through and guiding them in packaging branding, and requirements to participate in the regional, international and domestic trade fairs and expos. (9) Training of 100 processors in Leather-and agro processors Mukono and Jinja, Greater Bushenyi, Mbarara, and formation of clusters in each district I tr- 1-. ft h 51 &

Thank you, Mr Speaker. Related to what we have been debating, on the 15 th of February, at the 11 th Sitting of the third meeting of the third session of this Parliament, with you in the Chair, my able Chairperson of the Committee on Education and Sports, presented a report to do with the management challenges of Mbale School of the Deaf. This same report was also overtaken by events. The report was presented, but it wasn’t debated or adopted by the House. Your guidance was that perhaps the minister would give us a status report so that if there are recommendations, they would be adopted by the House. However, that never came to pass. That same day, my chairperson of the Committee on Government Assurances and Implementation presented a report. It was about a presidential pledge to extend electricity to industrial parks directly from power generation plants. This report was also overtaken by events though the same was also presented, not debated and no recommendations taken. Mr Speaker, wouldn’t it be procedurally right that you guide the ministers responsible to also give us status reports so that at least, this House can adopt certain recommendations or if there is a need for discussions and debate, we do the same so that committees are guided? Thank you.

Thank you, Chairman. Let the full report be considered on the Hansard . Honourable colleagues, I am going to open up the debate but I will first call the ministers to make a few clarifications. There is a general fear I have. Is Parliament being reduced to a court to handle issues of termination? I think we are taking more than we should. No, courts are available, if you are terminated. Most of the time, the people who come here instead of going to court are people who know that they have weak cases, I can tell you. They want us to now bring in politics and general recommendations. When you have a genuine case, in a minute, court reinstates you and all these employees know it. All of them know, especially most of them in government. Someone tells you, I am a civil servant, you can never touch me. They know their rights. They have unions, the industrial court, and everywhere. I look at the time we have and also Parliament entering into the space of another arm, showing it to do it this way or that way. It is just a point of concern. I am not saying we should not entertain petitions, but it is a point of concern for me. Honourable Minister of Energy and Mineral Development -

Thank you, Mr Speaker. I thank the committee for the report and also thank colleagues for the informative discussion. As you have rightly mentioned, Mr Speaker, not all suffocated employees in this country may succeed in raising petitions to Parliament. Speaking as a lawyer, we have established, under the Employment Act, the Industrial Court - And now that the Attorney-General is around, we need to be briefed. The last time I checked, the Industrial Court, out of the five would-be judges, had only two with one or two registrars and it is positioned in one place; Ntinda. The same Industrial Court must serve a country called Uganda with hundreds of districts. When you look at its enabling provisions being supported by labour officers, most of them do not exist in some regions and even for those regions where we have labour officers, their operational procedure and transaction is not regulated. They are very slow – someone can lodge a complaint and it takes five to 10 years without receiving attention whereas the provisions of the Industrial Court require that the majority of the petitions are referred by labour officers. We must deal with the challenges of employees and employers in a broader way. We need to be briefed by the Attorney-General and the Government: what undertaking are they making to empower the operations of the Industrial Court in line with labour disputes? As we speak, many other employees are struggling with petitions and complaints within labour offices across the country. The Industrial Court is located in Ntinda. How will someone in Pallisa or Kotido travel to the Industrial Court? Where is that empowerment to offer justice to these complainants? We need to interrogate this matter thoroughly and Parliament must be briefed so that we have a conclusive solution. Thank you.

Thank you, Mr Speaker. I also thank my learned friend for the question. One, the Industrial Court is fully constituted with a Chief Judge and a Judge, and all the officers as required by section 10 and it is fully constituted. Labour officers include a commissioner for labour, an assistant labour officer, and even a district labour officer. You have mentioned that some places do not have labour officers so I am going to take it up with the Minister of Gender, Labour and Social Development and ensure that, that is done. The labour officers do exist at this time. Also, there are other remedies available. We now have a chief magistrate in every district and a magistrate Grade 1 at every constituency. So, it is the resources that stop us from having all these places completed but I think we are doing quite well. I think we have sufficient manpower on the ground to address the labour issues as they arise. I thank you.

12226 COMMUNICATION FROM THE CHAIR D) PROPOSAL TO PRE-FINANCE THE RECONSTRUCTION OF THE MASAKA-MUTUKULA ROAD (89.5KM), REHABILITATION OF NYENDO-VILLA MARIA ROAD (11KM), UPGRADING OF THE 3.5KM ACCESS ROAD TO UGANDA PEOPLE’S DEFENCE FORCES BARRACKS IN MASAKA, ACCESS ROAD TO MASAKA INDUSTRIAL PARK (3.5KM) AND AN ADDITIONAL SCOPE OF 28.5KM FOR THE UPGRADING OF THE KIKAGATI-KAFUNZO ROAD

Madam Speaker, I wish to lay on the Table, the proposal to pre-finance the reconstruction of Masaka-Mutukula Road (89.5km) rehabilitation of the Nyendo-Villa Maria Road (11km), upgrading of the 3.5km access road to Uganda People’s Defence Forces Barracks in Masaka, the access road to Masaka Industrial Park (3.5km) and additional scope of 28.5km for the upgrading of the Kikagati- Kafunzo Road. I beg to lay.

Madam Speaker, still under delegation, I beg to lay the Ministerial Policy Statement for the Ministry of Science, Technology and Innovation for the Financial Year 2024/2025 for the following Votes: Vote 167 – Science, Technology and Innovation Secretariat; and Vote 110 – Uganda Industrial Research Institute. I beg to lay.

Thank you, very much. Most obliged, Mr Speaker. MOTION FOR ADOPTION OF THE REPORT OF THE COMMITTEE ON GOVERNMENT ASSURANCES AND IMPLEMENTATION ON THE PRESIDENTIAL PLEDGE TO EXTEND ELECTRICITY TO INDUSTRIAL PARKS, DIRECTLY FROM POWER GENERATION PLANTS

I beg to lay the report of the Committee on Government Assurances and Implementation on the presidential pledge to extend electricity to industrial parks directly from the power generation plants, and the minutes are attached. I beg to lay. The report I am presenting was presided over by the outgoing leadership of the Committee on Government Assurances, led by Hon. Betty Nambooze Bakireke and Hon. Joseph Ssewungu. My work is simply to present this report, which is dated February 2023 but also to note that most likely, some of the assurance issues contained in this report may have received some implementation. Having said that, allow me to go through the report: the assurance under consideration, the National Development Plan III, which is aligned to the country’s vision of 2040 stipulates that access to affordable, reliable and stable power is critical to the industrialisation process. The plan puts emphasis on extending electricity supply to business and industrial parks in order to reduce the cost of electricity for

11885 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 15 FEBRUARY 2024 manufacturers and increase the competitiveness of locally manufactured products within the region and beyond. The National industrial policy 2020 also seeks to build a fully integrated, competitive, high value and productive industrial sector through increased: 1. value addition of the local materials and products with comparative advantage for social economic transformation; 2. export of manufactured products by facilitating industries to increase production and match market demands in terms of both quality and quantity; 3. employment in the industrial sector through establishment and promotion of industries that create large-scale employment opportunities, ensuring inclusive growth and sustainable development; and 4. adoption of environmentally sustainable technologies by manufacturing subsectors. Currently, the Uganda Investment Authority (UIA) operates eight public industrial and business parks namely; Kampala, (Namanve), Luzira, Bweyogerere, Jinja, Soroti, Mbale, Kasese, and Mbarara Small and Medium Enterprise (SME) Park. The authority also supports three operational private industrial parks namely; Liao Shen Kapeeka, MMP Industrial Park Buikwe and Tian Tang Mukono, thereby making it eleven industrial and business parks across the country. Accordingly, on 4 June 2021, His Excellency the President while addressing Parliament on the State-of-the-Nation promised to supply electricity to industrial parks directly from some of the Government dams in a bid to reduce the end-user cost of electricity for manufacturers and increase competitiveness of locally manufactured products. In particular, His Excellency the President stated, and I quote, “The cost of electricity is distorted by mistakes committed by some of the actors without my knowledge… We shall see how to get out of this mistake. One solution that I have already ordered for the industrial parks is to supply power directly from some of the Government dams to them. I will not be deflected from that…” It is on this basis, and in line with the Rules of Procedure of Parliament, 2021, that the committee scrutinised the level of implementation of the aforementioned assurance and now presents this report to the august House. Mr Speaker, I am not going to read everything. The content of the report is uploaded so Members can read. I want to go direct to the scope. This report focuses on the following key areas: 1. implementation of the presidential directive; and 2. the state of power supply to the industrial parks. Methodology Documents were reviewed and they are stipulated in the report. There were meetings with the Minister of Energy and Mineral Development and there were field visits to selected industrial parks namely; 1. Mbale Industrial and Business Park; 2. Soroti Industrial and Business Park; and 3. Jinja Industrial and Business Park. Committee findings Implementation of the presidential directives In June 2021, His Excellency the President directed the Ministry of Energy and Mineral Development that the cost of electricity manufactured had been reduced to $0.05 per unit and the industrial parks should get power directly from the Government operating hydro power stations of Karuma, Isimba, Nalubaale, Kira, without going through Umeme distribution network where it is technologically possible.

11886 STANDING COMMITTEE REPORT Reducing the cost of electricity to the manufacturers Pursuant to the President’s promise, the Ministry of Energy and Mineral Development committed that by July 2022, all industrial consumers in industrial parks would be buying power directly from generation plants at a tariff of $0.05 per unit. An annual subsidy amounting to Shs 160.34 billion was needed to support this direct purchase. Details of the annual subsidy required by industrial park are indicated in Table 1 below. Members can read through the table. The committee further established that the Ministry of Energy and Mineral Development had commenced implementation of the $0.05 per unit as part of the January 2022 annual tariff review by the Electricity Regulatory Authority. However, this was done as a pilot targeting two industrial parks; Liao Shen Industrial Company Ltd in Kapeeka and MMP Industrial Park in Buikwe. According to the Ministry of Energy and Mineral Development, this was to enable monitoring and evaluation of the impact of low tariff incentives on the industry’s productivity and competitiveness of the products with the associated demand response to inform the plan for full implementation of the directive of the manufacturers buying electricity at $0.05 per unit. It was projected that the implementation of this pilot would lead to a revenue shortfall of about Shs 11.89 billion in the energy sector for the period January to December 2022. Extension of power directly from the Government operating hydro stations Consequent to the directive on 18 June 2022, the Government completed the amendment of the Electricity Act, 1999, which provided for the need for regulation to prescribe the terms under which industrial consumers may purchase electricity directly from generation or transmission companies. The development of the regulations commenced and the following steps were being taken:

Thank you, Mr Speaker. Observations and recommendations The committee observed that the implementation of the $0.05 per unit implemented by the Ministry of Energy and Mineral Development through a pilot did not foster the spirit of fair competition among industrial parks because it benefited only privately operated industrial parks like Liao Shen Industrial Park Company Ltd in Kapeeka and MMP Industrial Park in Buikwe. The committee recommends that the Ministry of Finance, Planning and Economic Development should allocate the Ministry of Energy and Mineral Development funds (subsidy) amounting to Shs 160.34 billion in the Budget for the Financial Year 2023/2024 to cater for full implementation of the presidential directive in all industrial parks to allow manufacturers purchase electricity at $0.05 per unit. Secondly, the committee observed that although His Excellency, the President directed the Ministry of Energy and Mineral Development to supply electricity to manufacturers directly from power generation plants, the execution of the directive had no supporting regulations in place, as required by the Electricity (Amendment) Act, 2022. The committee recommends that the Ministry of Energy and Mineral Development should table before Parliament, within one month, proof of the regulations clearly prescribing the terms under which industrial consumers may purchase electricity directly from generation or transmission companies, and a clear roadmap/ plan on how the Government intends to extend electricity to industrial parks, directly from power generation plants.

11887 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 15 FEBRUARY 2024 Conclusion His Excellency the President committed before Parliament to extend electricity to industrial parks directly from power generation plants and reduce the cost of electricity for manufacturers to $0.05 per unit. However, the committee’s findings clearly demonstrate that manufacturers continue to endure high costs of electricity, which undermines the country’s aspirations, as articulated in Vision 2040, the National Development Plan III and the National Industrial Policy. Thus, the committee duly established that the presidential pledge had not been fulfilled, as described in the table below. Members can read the table. Mr Speaker, I beg to report. (Applause)

11890 STANDING COMMITTEE REPORT Development Plan, the Government selected 69 key projects, which it planned to fund. Among them is the creation of four science and technology parks as part of the Innovation Technology Development and Transfer Program and 40 Technology and Business Incubators (TBIs). Prayer: Can I update the House on the progress that has been registered in line with the construction of the Science and Technology parks, as well as the Technology and Business Incubators? The response is that I am pleased to inform the House that the Government has made significant progress regarding the establishment of Science and Technology Parks and Technology and Business Incubators. Below are the updates: 1. Engineering Park in Rwebiteete: this park is the most advanced, and we anticipate its opening in May this year; 2. Mobility Park, in Kayunga: land acquisition has been completed, a master plan has been developed and plans are underway to install utilities and attract investors to the park; 3. Biosciences Park in Nakasongola: land has been acquired and a master plan is finalised. Construction has been contracted to National Enterprise Corporation (NEC) and will commence shortly; and 4. Agro-Science Park, in Soroti. The master plan is currently under development and is expected to be completed by June 2024. Once finalised, we will seek funding for the construction. Mr Speaker, in addition to the Uganda Industrial Research Institute (UIRI), Uganda has completed the Construction Technology Innovation Business Incubation Centre at Namanve, which is complete and will be opened soon. Additional technology and business incubators are planned to be affiliated with each of the science parks to enable support for ventures and innovators. The Government remains committed to the development of these projects and will provide further updates as they progress. Question No.4 This question came from Hon. Joy Waako, National Female Representative for Older Persons, and the question was that the Ministry of Gender, Labour and Social Development publicised the National Guidelines on Healthy Ageing, which were launched during the celebrations of the International Day of Older Persons on 1 October 2023, in Kyegegwa District. The guidelines are to be used by all persons, especially the older persons to manage their lives so as to attain optimum health, functioning and productivity. Under topic one of the guidelines on nutrition and toileting, it is observed that older persons have a tendency of restricting food, water and fruit consumption due to the fear of frequenting the toilet which sometimes are not user-friendly. This has negative consequences on healthy aging such as constipation and malnutrition. Prayer Which measures has the Ministry of Gender, Labour and Social Development put in place to avail user-friendly toilet facilities for older persons, especially in public places? Response Mr Speaker, the Ministry of Gender, Labour and Social Development, as a ministry in charge of disability affairs, is represented on the National Building Review Board (NBRB), whose functions include overseeing public buildings to cater for such matters of safety, health and inclusion. Mr Speaker, the ministry, through Occupational Safety and Health Department, is mandated to ensure workplace safety. This is done through undertaking occupational safety and health plan approval of public buildings and occupational safety and health inspections of all workplaces, including public buildings. Availability of facilities for people with disabilities and older persons are key components and part of the parameters or checklists that are used. [Ms Nabbanja] PRIME MINISTER’S TIME

Attorney- General, the Floor is always open for you. Any time you want to make a statement or update the House, we are always available. The sectoral committee should follow up on this matter with the Attorney-General. Honourable colleagues, we received a report from the Committee on Government Assurance and Implementation on the presidential pledge to extend electricity to industrial parks. This was a very clear report, referring to what the President pledged and saying, “Please, implement.” That is our recommendation. I feel this is a report on which I can put the question right away so that the Government can do so and we know that Parliament is supporting the President on this issue. I now put the question that the report of the Committee on Government Assurance and Implementation on the presidential pledge to extend electricity to industrial parks directly from power generation plants be adopted. (Question put and agreed to.) Report adopted.

Thank you, Mr Speaker. Factories are shutting down, the reason being, one, the cost of production is very high. A unit of electricity per kilowatt is between Shs 3,470 unlike those who are producing within the industrial parks where they only buy a kilowatt at Shs 1,900 and some cents. Mr Speaker, the Government has failed to provide a market for our tea. We have the Uganda Coffee Development Authority and there is no Uganda Tea Development Authority or any regulator. The only thing the Government did – (Interjections) – no, even if they were closed, they were there. What do you mean? We are orphans in our Government. As I wind up – (Hon. Macho rose) – Hon. Macho, with due respect –

11747 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 8 FEBRUARY 2024 by global buyers anticipating crop failure in Madagascar. The Government acknowledges the decline of prices of vanilla and recently tea and expresses commitment to sustaining quality gains through collaboration with farmers, district local governments, processors, and key promoters. 4. Hon. Pamela Kamugo Nasiyo District Woman Representative, Budaka raised a matter concerning the major rice growing districts in North Bukedi being left out in distribution of fertilisers to rice growers. Her prayer was: can I update the House of the matter? The distribution of fertilisers mentioned above was carried out under the Agriculture Cluster Development Project (ACDP) within project districts. Unfortunately, some districts like Budaka were outside the project coverage and thus did not benefit. I wish to however note that districts in the Bukedi Sub-region will continue to benefit from other ministry initiatives including the upcoming Uganda Climate Smart Agricultural Transformation Project (UCSATP). This nationwide project aims to promote the adoption and upscaling of climate-smart technologies, greenhouse gas mitigation, and improvements in agricultural productivity and incomes. The Government assures that these districts will be covered by the project, emphasising its objectives of enhancing climate-smart practices and improving market access for the farmers. 5. Hon. Phiona Nyamutoro, National Female Youth Representative said that the Government has contracted Lagan Dott Ltd Company to construct roads, drainage systems and fibre optics in the Kampala Industrial and Business park at Namanve, however, the company’s work is not progressing and it is blaming Government entities for not playing their part, for example, designing markings hence delaying their works. She asked: can I inform the House how Government has failed to support the contractor yet the loan got for the project is being serviced? Response Mr Speaker, in 2019, the Government acquired a loan of £ 249 million which is about Shs 1 trillion from UK Export Finance to develop the industrial park for four years, ending in 2023. The contractor, Lagan Dott Limited, in a joint venture established between the UK contractors, Lagan Group Limited and Dott Services Ltd of Uganda was given the contract to develop the infrastructure stated above. However, the works have delayed to be complete and the Government has extended the period for completion by two years. The purported delays result from the floods in the area beyond us and statutory procedures that must be followed when implementing such multi-billion projects which cannot be bypassed but followed. So far, the contractor has completed 28 kilometres out of 44 kilometres and Government is as well concerned. We are working closely with the contractor to ensure that they work hard and deliver the project as required without compromising quality. The access roads have been done, the power station is in place. What is remaining is connectivity. It should be remembered in a span of a few years, factories increased in Namanve Industrial Park from 22 to 258 factories. The plan is to have 500 factories in Namanve Industrial Park and this will be achieved. Mr Speaker, Government is committed to ensure all outstanding issues on similar projects are settled on time so that value for money is not compromised. 6. Hon. Edson Rugumayo, Youth Representative, Western Region raised a question on the need to put in place

11748 MINISTERIAL STATEMENT regulations under Section 50 of the Public Procurement and Disposal of Public Assets Authority (PPDA) Act to provide for preference and reservation schemes that increase participation of youth, women and persons with disabilities in procurement processes. His prayer; can the Government update the House on this matter? Mr Speaker, my response is that the new PPDA Regulations, 2023 were launched on 25 January 2024. The new PPDA Regulations, 2023 have provisions that will facilitate direct procurement from manufacturers of aviation, industrial, agricultural, and medical equipment in addition to allowing the use of own resources for public works under the force account mechanism. Mr Speaker, the PPDA Regulations, 2023 mark a crucial milestone in the ongoing efforts for public sector reforms, to enable transparency, accountability and efficiency in public procurement and disposal processes. Adhering to the PPDA regulations will instil confidence in the public that their hard-earned money is being utilised efficiently and effectively. The success of these regulations lies in the effective implementation and compliance by all stakeholders involved, in the procurement and disposal chain. Mr Speaker, as I conclude, the provision for preference and reservation schemes that increase participation of youth, women and persons with disabilities in the procurement processes has been catered for in the guidelines that are pending Cabinet approval as you already know. Part one of the regulations covers the promotion of participation of women, youth and persons with disabilities in public procurement. Mr Speaker, I beg to move.

11756 MINISTERIAL STATEMENT The committee also observed that a lot of money was allocated to various projects in these universities, and some of them were never completed. Science is not a one-off activity. Research takes a lot of time and when money is given in bits, some of the researches collapse and some of the results make no meaning because the project is not completed. Another observation was that there are no technology parks within the proximity of these science-based institutions to enable information sharing among academicians, innovators and the industrial sector. Notwithstanding that the private sector is not on board to commercialise these new innovations to foster socio-economic development, which is the key objective of - Under rule 34, I am supposed to read it and it is up to the Speaker to accept debate for 45 minutes. So, I am summarising-

Mr Speaker, relatedly, as the Attorney-General comes, we have three Bills that have a similar scenario. In 2008 and 2009, Parliament passed the Business, Technical, Vocational, Education and Training Act, (BTVET) and there was an industrial training levy. We passed the Uganda Tourism Act and there was a tourism development levy. We passed the Local Service Tax and there was a hotel tax levy and the others. These have not been implemented because of a similar scenario of forming a certain body, then the stakeholders refuse. My presupposition, Mr Speaker, is that when this matter comes, the Attorney-General should wholesomely look at all these Acts where we have put body corporates that are not operational. It will help going forward. I thank you.

Thank you, Mr Speaker. Our recommendations as a committee; 1. The Ministry of Trade, Industry and Cooperatives and the Ministry of Gender, Labour, and Social Development should set up a cottage industry to skill and absorb the young people that would be migrated; 2. Government should set up the curriculum and institutionalise domestic work and its training under the Directorate of Industrial Training (DIT) with short courses and domestic workers appropriate to their jobs; 3. The five provinces of Saudi Arabia should have five coordinators, each following up with the workers in a given province. The delegation noted that it was more cost- effective for Uganda to have an attaché than to recruit local workers who cannot be supervised; 4. The Welfare Department of the Ministry of Gender, Labour and Social Development should ensure that the children of the workers remain in safe custody before the worker is allowed to migrate. A social impact assessment on children dependents and the family/ spouses of the workers should be carried out; 5. Saudi Arabia should allow Ugandans to be qualified to offer translators in Saudi Arabia; 6. The Ugandan mission in Saudi Arabia should have a passport collection centre; 7. National Identification and Registration Authority (NIRA) should facilitate immigration services at the Ugandan mission in Riyadh like it does in other countries; 8. The system of sanctions, rewards, and punishments in the labour externalisation sector should be strengthened for the employer and employee and recruitment companies who could be in breach of their contractual obligations; 9. The Minister of Internal Affairs should clearly define trafficking in person, export of labour and externalisation of labour in all the frameworks; 10. A joint training curriculum for migrant workers from East Africa should be considered; 11. Culture, religion and Arabic language should be part of the pre-boarding training for migrant workers; 12. Government should harness the skills and knowledge acquired by migrant workers upon their return; 13. Workers whose job description changes from the original offer of being a domestic worker in Saudi Arabia should have their remunerations increased. In conclusion, the committee strongly states as follows: It is imperative to ensure that there is safe and orderly migration that corresponds to the Sustainable Development Goals (SDGs). SDG 87 calls upon all countries to eradicate forceful labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour worldwide. Goals 8.8 and 10.7 are also crucial regarding the protection of labour rights and promotion of safe and secure working environments of all workers, including migrant workers, as well as the facilitation of orderly, safe and responsible migration and mobility of people. Chapter 4 of the Constitution, the Livingston Call for Action and the African Union Declaration require that the Government provides for social protection. It is also important to continue the efforts of creating jobs and opportunities for especially young people who are skilled. Mr Speaker, I beg to move that a report of the committee is adopted. Thank you.

Thank you, Mr Speaker. We received the two reports and as we sought your guidance that a few preliminary issues be responded to in order to support the debate that will follow. I wish to pick out the salient issues in the two reports as follows: The first is that the Budget Framework Paper referred to the Committee on Budget had two ceilings. Mr Speaker, this was observed in both the majority and minority reports, and we wish to respond as follows. It was noted that there was a discrepancy between the resource envelope for the Financial Year 2024/2025 and the total programme allocation of Shs 1.866 trillion. This excess amount was due to the supplementary issued under Vote 130: Treasury operations, which was carried forward into the budget for the Financial Year 2024/2025. Accordingly, the amount has been reduced from the budget under Vote 130. The second matter was on the suspicious domestic revenue, as noted in the minority report. Mr Speaker, the key growth drivers in the Financial Year 2024/2025 will be investments in the oil and gas sector, and Government interventions such as Emyooga and the Parish Development Model. These are largely targeting agriculture, and are not immediately contributing to the tax base in the Financial Year 2024/2025. The expected revenue contribution will be realised in the Financial Year 2025/2026, and the medium term. Additional proposals to raise revenue further should be addressed. There will be additional revenue, which we anticipate to arrive at after Parliament has considered the tax measures. The minority report also observes that the Auditor-General, in his December 2023 report at page 178, queried the tax exemptions amounting to Shs 1.4 trillion granted to various companies, and that the stated purpose for these exemptions is not met yet the practice continues. Mr Speaker, we wish to respond as follows: All the tax exemptions are provided for under the relevant tax laws. However, the law also provides for the minister’s powers to pay taxes on behalf of certain strategic investments, notably manufacturing, including operators in the private industrial parks. The commitment in this regard is for the following purposes: 1. Import substitution and export promotion; 2. Creation of employment to the people of Uganda; and

Thank you, Mr Speaker. The NBFP for the Financial Year 2024/2025 was drafted and guided by the theme of “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access”. Mr Speaker, the total funding for the next financial year is projected at Shs 52.722 trillion, comprising domestic revenue of Shs 29.958 trillion, budget support of Shs 28.94 billion, domestic financing of Shs 4.116 trillion, project support of Shs 8.877 trillion, domestic refinancing amounting to Shs 9.456 trillion, and the local revenue (NTR) of Shs 287.1 billion. Mr Speaker, all these resources will be utilised and spread across the 20 NDP III Programmes. Mr Speaker, also to note is that the Ministry of Finance, Planning and Economic Development is working on the tax measures, which will be tabled in this House as part of the Budget submission for your scrutiny and approval in April. Mr Speaker, what are our priorities for next financial year’s budget? 1. Peace and security 2. Roads 3. Electricity 4. Funding to activities that earn us money, for example, the Parish Development Model and other wealth funds. 5. Investing in the people of Uganda 6. Adequate planning for natural disasters and international commitments. Mr Speaker, five growth areas have been prioritised under the overall budget strategy of growing the economy tenfold to be implemented starting the Financial Year 2024/2025 and these are the following: 1. Tourism development 2. Agro-industrialisation 3. Mineral-based industrial development

Mr Speaker. I do not know how to know how to do the summaries. I think I will not miss to read the vote which deals with the African Cup of Nations (AFCON) because some people want to hear the details in that. Let me go to the vote for the Ministry of Gender, Labour and Social Development. We took the recommendations as suggested. Members will read the recommendations. We have the National Women’s Council -we have the National Youth Council; we have the National Insurance Authority – Regarding the Industrial Court, there is recruitment of three judges of the Industrial Court and so, we have provided Shs 1.3 billion to cater for this recruitment and the usual votes which are there. Equal Opportunities Commission We have recommended that Shs 2 billion be availed to strengthen the capacity of the state and non-state actors to mainstream equal opportunities and affirmative action and their need for headquarters. The Ministry of Finance, Planning and Economic Development needs Shs 4.5 billion for rent provided for National Planning Authority (NPA). We have the National Population Council, the National Lotteries and Gaming Regulatory Board –

11450 THE NATIONAL BUDGET FRAMEWORK PAPER FOR THE FY s 2024/2025 - 2028/2029 Vote 157: National Forestry Authority Government should provide Shs 1.5 billion for resurveying and demarcation of forest boundaries and Shs 3.1 billion for protection of forests in the coming financial year. Inadequate budget for the provision of tree seedlings We have recommended, as a committee, that Shs 5 billion be provided for tree seedlings and Shs 3 billion for industrial forest plantations. Vote 302: Uganda National Meteorological Authority (UNMA) The committee recommends that the Government should provide Shs 7 billion under UNMA for the unfunded priorities. Vote 013: Ministry of Education and Sports The committee recommends that the Ministry of Finance, Planning and Economic Development commits an additional Shs 30.6 billion to the Ministry of Education and Sports for grant- aiding both primary and secondary schools. Finalising the Higher Education Policy The committee recommends that the Ministry of Finance, Planning and Economic Development gets an additional Shs 500 million for finalising the Higher Education Policy. Facilitation for Secondary School Games The committee recommends that the Ministry of Finance, Planning and Economic Development gives Shs 23.304 billion to facilitate secondary school games. Higher Education Students Financing Board (HESFB) Mr Speaker, we know how you are passionate about education in Uganda and equity. The committee recommends that the Ministry of Finance, Planning and Economic Development provides an additional Shs 6.75 billion to provide loans for a total of 6,180 students on top of the Shs 21 billion provided for. Mr Speaker, this was your passion with what you did in this Parliament recently. Vote 165: Uganda Business and Technical Examinations Board (UBTEB) We have provided money for Uganda Business and Technical Examination Board and money has been provided for the Uganda National Examination Board (UNEB) and an additional Shs 6.5 billion is needed. Conducting Transitional Examinations The committee recommends that Shs 8.6 billion be provided. Securing accommodation for hosting marking and enhancing marking examinations in the new curriculum The committee recommends that an additional Shs 6.5 billion be given to UNEB. Enhancing marking fees for examinations The committee recommends that another Shs 4.6 billion be given. The committee recommends that the Ministry of Finance, Planning and Economic Development commits additional Shs 8.5 billion to cater for travel in-land and Shs 2.9 billion to provide extra security for examinations. Vote 166: National Council of Sports The committee recommends that the Ministry of Finance, Planning and Economic Development commits Shs 380 billion for the construction of Hoima Stadium - Shs 180 billion; Akii Bua Stadium, Shs 100 billion; and Buhinga Stadium, Shs 100 billion. That is the split and recommendation of the committee for the construction of all those beautiful stadia – Akii Bua, Buhinga, and Hoima. Therefore, Shs 380 billion will be split. (Applause)

The following have been designated to the Committee on Budget by the Speaker: 1. Hon. Paul Omara – Otuke County; 2. Hon. Wilfred Niwagaba - Ndorwa County East; 3. Hon. Stephen Kangwagye Rwakanuma - Bukanga County; 4. Hon. Dennis Nyangweso - Samia Bugwe Central County; 5. Hon. Paska Menya – Pader; 6. Hon. Martin Ojara Mapenduzi - Bardege-Layibi Division; 7. Hon. Noah Musa - Koboko North County; and 8. Hon. Karim Masaba - Industrial Division – Mbale City.

11322 MOTION FOR A RESOLUTION [Mr Musasizi] Over the past 12 months, the annual headline inflation slowed down from a peak of 10.7 per cent in October 2022, to 2.6 per cent in November 2023. Inflation is expected to remain within the policy target of 5 per cent over the medium- term, supported by close coordination between monetary management and fiscal policy. Madam Speaker, the theme for the Budget for the Financial year 2024/2025 remains the same as the one for the Financial Year 2022/2023, which is: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.” Madam Speaker, on the imports on the merchandise side, the merchandise exports increased significantly, growing by 54.9 per cent, from $4.194 billion in October 2022, to $6.498 billion in October 2023, largely driven by gold, coffee and maize exports. While the imports grew by 26.2 per cent, slower than the growth in the exports resulting in the narrowing of the trade deficit by 11.2 per cent in the same period. Imports increased to $9.356 billion in the 12 months to October 2023, compared to $7.413 billion a year ago. The increase in imports is largely in the oil and gas sector, mineral exploration, and vehicles and accessories. Our priority areas for the 2024/2025 budget are the following: Investing in the people of Uganda, peace and security, roads, electricity generation and transmission lines, prioritising money-earning investments and the effective management of our natural disasters. We have done this with the guidance of the President of the Republic of Uganda. We are looking forward to growing our economy ten-fold in 15 years. This means that we are working towards moving our economy from $49.5 billion to $500 billion in 15 years, and we shall do so by focusing on the following strategic areas: 1. Tourism development; 2. Agro-industrial development; 3. Mineral-based industrial development; 4. Oil and gas development, including petrochemical industries; and 5. Knowledge economy. Madam Speaker, on the resource envelope, the total funding for the Financial Year 2024/2025 is projected to be Shs 52,722,682,928,748. The details are in the big document, which I have laid. The financing strategy for the Budget will be as follows: 1. We are looking forward to deepening the Fiscal Consolidation Agenda through improved revenue collection, continued re-purposing of the Budget to improve efficiency and effectiveness of the public expenditure; 2. Controlled borrowing to reduce debt servicing costs while supporting faster socio-economic transformation and the implementation of our public investment financing strategy by exploring alternative and more sustainable sources of financing, including Public-Private Partnerships (PPPs), private equity funds, capital markets, climate financing, including carbon credit markets, among others; and 3. Improving efficiency in the execution of projects and public investments. With this, our prayer to Parliament is to consider the Budget Framework Paper for the Financial Year 2024/2025 to 2028/2029. I beg to move.

Thank you. Next item. MOTION FOR A RESOLUTION OF PARLIAMENT TO AUTHORISE GOVERNMENT TO PREFINANCE THE RECONSTRUCTION OF MASAKA- MUTUKULA ROAD (89.5KILOMETRES) AND REHABILITATION OF NYENDO- VILLA MARIA (11KILOMETRES), UPGRADING OF 3.5KILOMETRES ACCESS ROAD TO THE UGANDA PEOPLE’S DEFENCE FORCES BARRACKS IN MASAKA, 3.5KILOMETRES ACCESS ROAD TO MASAKA INDUSTRIAL PARK AND AN ADDITIONAL SCOPE OF 28.5KILOMETRES FOR KIKAGATI- KAFUNZO ROAD AT A TOTAL COST OF UGX 691,680,000,000

11333 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 13 DECEMBER 2023 of the access road to the Uganda People’s Defence Forces barracks in Masaka, the 3.5kilometres access road to Masaka Industrial Park and an additional scope of 28.5kilometres for Kikagati-Kafunzo Road at a total cost of Shs 691,680,000,000. I beg to move, Madam Speaker.

Madam Speaker, having listened to all those submissions, let me proceed to the observations and recommendations; they are summarised. In particular, the committee looked at the unit cost of the road, which was on the higher side, and made the following recommendations: The committee recommends that given the high unit cost of construction, the Ministry of Works and Transport and the Uganda National Roads Authority (UNRA) should ensure that the contractor delivers the best quality bridges and roads in order to achieve value for money. In addition, the committee recommends that UNRA should increase places of convenience on the road, from one to two, since this is an international highway - that is within that cost. Further, given the unit cost of the project, the 400 metres from Ndegeya Primary Teachers’ College (PTC) be upgraded and street lighting should be included in the following urban areas: Masaka urban stretch to be increased to 10 kilometres; Bukunda urban stretch - 1.5 kilometres; Villa Maria-Nyendo Road - 11 kilometres; Masaka Industrial Park - 3.5 kilometres; and Kitwe Town on Kikagati- Kafunzo Road. We are recommending that within the same cost. The other recommendation is on the slow disbursement in externally financed projects but this is specific to - we are considering the Jinja Express Highway that you mentioned earlier, and I request that I read this. RESOLUTION TO BORROW

11335 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 13 DECEMBER 2023 The Kampala-Jinja Express Highway (KJE) was at procurement stage seven years after the project started and by June 2022, it had attracted commission fees amounting to Shs 3 billion according to the Auditor-General’s Report for the Financial Year ending June 2022 and between July and December 2022, Shs 1.1 billion was spent on commission fees. The committee was informed that the delay in the implementation is partly attributed to the Cabinet and Parliament’s loan approval conditions that delayed the project by 18 months, as well as delayed procurement of the project implementation unit due to lack of readily available skills in the region. The committee recommends that UNRA should ensure that externally financed projects are only secured - we reiterated the earlier recommendation. Further, for the Government of Uganda projects, UNRA should ensure the timely implementation to create the much-needed fiscal space that shall be required in two years, now that this loan has to be cleared within two years after implementation. The Whistle-blowers’ Protection Act, 2010 should be amended to provide for timeliness of procurement-related complaints as it is in the PPDA Act. We mentioned earlier the issue of inadequate counterpart funding. The committee observed that the budget for land acquisition under this project, is not enough. Some projects had to stall as contractors had to wait for when the sections of the road would be acquired so as to access full possession of the site. For instance, civil works for Kigumba-Bulima, under the Kigumba-Masindi-Hoima-Kabwoya Road Project, commenced works a year after contract signature due to lack of adequate right of way, which was attributed to inadequate funding for land acquisition. The committee recommends that the budget for land acquisition under UNRA should be enhanced to ensure the smooth implementation of various projects with Government commitments. In addition, UNRA should prioritise counterpart funding for this project under the land acquisition project to ensure its timely implementation, leaving no room for blame on Government for any delays. Currency breakdown of pre-financed projects The committee recommends that UNRA should consider negotiating for better currency breakdown in the various contracts – because, Madam Speaker, the breakdown was 80 per cent US dollars and 20 per cent Uganda Shillings – so as to minimise on the foreign exchange risk associated with foreign currency to preferably, a ratio of 50:50. In conclusion, the committee recommends that the proposal to pre-finance the reconstruction of Masaka-Mutukula Road (89.5kilometres) and rehabilitation of Nyendo-Villa Maria (11kilometres); the upgrading of 3.5 kilometres access road to Uganda People’s Defence Forces barracks in Masaka, 3.5kilometres access road to Masaka Industrial Park; and an additional scope of 28.5kilometres for Kikagati-Kafunzo Road at a total cost of Shs 691,680,000,000, be approved subject to the observations and recommendations herein. Madam Speaker, I beg to move.

Thank you. Honourable members, as we go for Christmas, to those of us who are cattle keepers, there is going to be a lot of theft. Then, we have also heard about the Anthrax outbreak in the districts of Kazo, Ssembabule and Kyotera; so, we should be able to protect our cows from being infected. This is also due to the weather because it is a rainy season – so, there is a lot of malaria. We should take note. Honourable members, I now put the question that the motion for a Resolution of Parliament to authorise – by the way, I do not need a motion because the debate has been done. Honourable members, I now put the question that the motion for a Resolution of Parliament to authorise Government to pre-finance reconstruction of the Masaka-Mutukula Road (89.5 kilometres) and rehabilitation of the Nyendo-Villa Maria Road (11 kilometres); upgrading of 3.5 kilometres access road to the Uganda People’s Defence Force barracks in Masaka; 3.5 kilometres access road to Masaka Industrial Park; and an additional scope of 28.5 kilometres for Kikagati-Kafunzo Road at a total cost of Shs 691,680,000,000; be approved by this House. (Question put and agreed to.) Motion adopted.

11311 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 6 DECEMBER 2023 The minister erred by processing a defective motion On the onset, the Budget Committee erred in processing a motion that was defective. Whereas the committee has the mandate to process supplementary budget requests, it does not have the mandate to process loans. This mandate of approving loans is with the purview of the Committee on National Economy, not the Budget Committee. We find the minister’s request irregular as he should have appeared before this Parliament with a request for a loan for subsequent processing by the Budget Committee. Spending money in anticipation of the parliamentary approval From the minister’s submission, we note that he is seeking approval from Parliament for funds that have already been spent under 3 per cent threshold, as required by the PFMA. This already implies that funds being sought to be borrowed have already been spent, yet the minister includes the same funds he is looking forward to borrowing. You can note that Shs 1.5 trillion is already spent, but when the minister is coming for request, he is requesting for Shs 3.5 trillion. He would have requested for Shs 1.9 trillion. This tantamount spending in anticipation so that this House ritually rubber- stamps an irregularity and should out rightly be discouraged. Distortions of budgeting process We have severally emphasised, in our Alternative Policy Direction, the need to respect the budgeting process. Sadly, it has become a norm that the Executive presents this honourable House supplementary budget requests including items that were rejected by Parliament during the budgeting process. There are requests that consistently feature in the supplementary budgets. For example, every supplementary has deemed energy, Kira motors, Presidential Banana Initiative on Industrial Development, Lubowa Hospital, COVIDEX, among others. They are very many. In the same vein, Madam Speaker -

Thank you. I forward the report to the committee. Next? (II)THE PROPOSAL TO PREFINANCE THE RECONSTRUCTION OF MASAKA– MUTUKULA ROAD (89.5KM) AND REHABILITATION OF NYENDO–VILLA MARIA (11KM), UPGRADING OF 3.5KM ACCESS ROAD TO UGANDA PEOPLE’S DEFENCE FORCES BARRACKS IN MASAKA AND 3.5KM ACCESS ROAD TO MASAKA INDUSTRIAL PARK AT A TOTAL COST OF SHS 691,680,000,000

Madam Speaker, I beg to lay on the Table the proposal to pre-finance the reconstruction of Masaka–Mutukula road (89.5km) and rehabilitation of Nyendo–Villa Maria (11km), upgrading of 3.5km access road to Uganda People’s Defence Forces barracks in Masaka and 3.5km access road to Masaka Industrial Park at a total cost of Shs 691,680,000,000 -

3.5-kilometre access road to Masaka Industrial Park and an additional scope of 28.5 kilometres for Kikagati-Kafunzo Road at a total cost of Shs 691,680,000,000. I beg to lay, Madam Speaker.

Thank you, Rt Hon. Speaker, for your communication. It is very clear that the majority of the country’s Gross Domestic Product (GDP) comes from Kampala. In the last one week, it has been very difficult for people to move from one point to another. To move from Mbuya to the central business district is almost impossible; it takes many hours. There are a lot of infrastructure works going on. However, one of the good practices in infrastructure development around cities is that there must be continuity in terms of the flow of traffic. There are a lot of delays impacting both the business community and also Government because if you have to move a container of goods from industrial area to Nakawa for taxes to be assessed in today’s situation, it is next to impossible. We would like the Prime Minister to tell us - these contracts that you have signed with contractors, shouldn’t continuity and free flow of traffic be part, so that we have a seamless flow? We are approaching Christmas and many people will be travelling. The situation will only get worse. Madam Speaker, I would like Government to assure us about the measures they are putting in place to make sure that there is continuity. Thank you.

No, Madam Speaker, you must do proper vetting because I have seen his face closely and he is not very appealing. (Laughter) Back to the issue, as a Minister of Finance, Planning and Economic Development in charge of investment and privatisation, I would like to assure my honourable colleagues and the country that as I speak, we do not give licences to investors who have gotten land in a swampy area. Previously, the reference that you made, which is Namanve Industrial Park, was gazetted by Parliament. It was a known forest reserve and a swamp, but Parliament took a decision in 1991, when I was in primary one, that it should become an industrial park. What we have had to do is to preserve the swamp that we found there so that we only licence investors in the dry areas. We are now working very closely with the Ministry of Water and Environment to ensure that NEMA does not issue a certificate of environmental impact assessment to investors who would like to construct in the wetlands. If NEMA does that issuance, the investors will go there, but if they do not, they will not. On our part, we do not give them investment licences, and neither do we facilitate them with the incentives that are approved by Parliament to facilitate them to do their business in Uganda.

Thank you, Madam Speaker. For those of you who have raised the issue of unemployment - job creation for young people who now comprise 78 per cent of our population – and – in addition to the development of human resource capacity, which is through skilling, we have set up centres across all the regions. As the Government led by President Yoweri Museveni, we are emphasising key strategic areas that create jobs. The first is commercial agriculture. That is why you see we are investing in the Parish Development Model (PDM) and Emyooga because we believe that when we invest in commercial agriculture, then jobs are created. The second point is industrialisation. Every factory that we set up employs, on average, 200 young people. We are supporting the 22 industrial parks so that we can attract investors to put up factories to help employ our young people. The third sector that all of us should support is the service sector. When you put up a hotel, you employ young people. Therefore, as we pass budgets and policies, we should all focus on concentrating and supporting these four strategic areas of commercial agriculture, industrialisation, services. These are key in creating jobs and supporting the economy to grow. In addition to the human resource capacity building, we should, in my opinion, continue to support the vision of the President in creating jobs; and these are the key strategic areas that –

10967 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 16 NOVEMBER 2023 commensurate return in form of products on the market. This has been due to an incomplete understanding of how ideas result into products and enterprises. Consequently, there are a lot of prototypes lying idle in our universities and research institutes, yet they have potential, if only they could be linked to industry and markets. This is something I wanted Members to first comprehend so as to understand why we are doing all this. I will, straight away, go to the recommendations of the committee from this visit to Nairobi. The committee observed that: 1. Uganda has joined alliances involved in the development of GMOs, especially gene drive, which is meant to curb malaria. The committee is, however, concerned about the level of coordination between Uganda Virus Research Institute (UVRI) and other research institutions such as National Agricultural Research Organisation (NARO). The coordination and collaboration needs to be streamlined. 2. Uganda does not have laws on GMOs, despite the fact that the country is carrying out research on GMOs. This means that the country cannot ably regulate GMO development, importation, distribution and consumption within the country. Given the porous borders that Uganda shares with the neighbouring countries, this puts Ugandans at a risk of having GMO products distributed in the country without proper regulations. 3. Most of the countries that have embraced GMOs have 1egal frameworks to govern the development, import and export of GMOs. The laws are geared towards safe development, distribution, labelling of the products and protection of human health and the environment. The laws are also geared towards regulating who and where to sell the products (license). Nigeria, in particular, has laws on GMOs even when they are not developing them. 4. GMOs are necessary. However, these should be reduced to non-consumable crops such as cotton. You can agree with me that this is where – If the GMOs are for producing cotton, we are sure of the health of humans because it is used out of the human body. The research on gene drive could be an ideal technology to fight malaria. 5. Kenya has an apex authority called the National Biosafety Authority, which is mandated to consider and make decisions on all activities involving GMOs. In Uganda, the Uganda National Council of Science and Technology (UNCST), which is mandated to regulate science research, is the one doing this. By implication, GMO is inclusive. The outstanding challenge in Uganda is that the institutions involved in improving a variety of crops and science research do not report to the same sector. For example, NARO reports to the Ministry of Agriculture, Animal Industry and Fisheries, UVRI reports to the Ministry of Health, and Uganda Industrial Research Institute reports to the Ministry of Trade, Industries and Cooperatives. This has left a missing link that hinders the thriving of technology and innovation. Honourable members, the committee recommends that: 1. Government should expedite the process of enacting the law on biosafety to regulate its development, importation, distribution, labelling and consumption. Better still, Uganda should borrow a leaf from Nigeria that has enacted GMO laws without development of GMOs; 2. Government should put in place stringent measures to protect indigenous seeds; 3. There is need to embark on institution configuration to explore whether it is workable within the existing legislations; 4. Uganda should make comprehensive analysis of all the risk factors involving

Thank you, Mr Speaker. On 13 July 2023, you guided that a joint statement be made by the Ministry of Water and Environment, Ministry of Agriculture, Animal Industry and Fisheries and the Ministry of Lands, Housing and Urban Development on the status of Namyoya Forest Reserve in Mukono together with the status of the land title bearers on the said land. In the Mukono District Council meeting that sat on 13 December 2013, the council approved a motion of degazetting Kifu, Nabugulu, and Namyoya Central Forest Reserves. Furthermore, in the district council meeting that sat on 28 March 2017, Mukono District Council approved a motion mandating the District Executive Committee to consider offering land to Victorious Car Bond Limited for the development of a High-Tech Industrial Park. The land hosts Kifu, Nabugulu and Namyoya Forest Reserves. The same matter was again discussed in the district council meeting that sat on 29 March 2019 during which the district chairperson moved the motion seeking the council’s approval for degazettement of Kifu, Nabugulu and Namyoya Forest Reserves. [Ms Nabakooba] MINISTERIAL STATEMENT

Thank you, Mr Speaker. I would also like to thank the minister for her statement. I will start with Bunda Central Reserve that is already occupied by residential houses. If you are saying that you are going to degazzette it as an industrial area and compensate those people who have already encroached, why should we compensate them? Allow me to also talk about Namyoya Forest Reserve. There are so many titles in the central forest reserves in this country. We have over 1000 illegal land titles and they are being created by the Ministry of Lands, Housing and Urban Development in connivance with officials from the National Forestry Authority. Formerly, the encroachment on forest reserves was by digging and grazing, but since 2010, they started creating illegal land titles. It has now even gone beyond: they are now degazetting forests without using Parliament or the courts of law. What they actually do is that the land grabber goes to court and opens a case against the Ministry of Lands, Housing and Urban Development, which has given the title, and the Attorney-General. What do you expect when those ones go to court as defendants, witnesses or subject matter specialists? So far, we have lost many forests, for example, Buhungiro in Kyenjojo District. After going to court, Government loses the case and the encroacher is compensated. For example, for Buhungiro Forest land, someone has been compensated at Shs 1.6 billion –(Member timed out.)

Mr Speaker, Uganda joined the rest of the world to commemorate the 43 rd World Food Day on 16 October 2023. This year’s event was celebrated at the National Coffee Research Institute in Kituuza, Mukono under the theme, “Water is Life, Water is Food, Leave No One Behind.” As you may be aware, every 16 th day of October, the global community joins together to celebrate the World Food Day calling on everyone; Government, academia, civil society, private sector and individuals from various sectors of society to rally against hunger and build sustainable food security. The event raises awareness and action for those who suffer from hunger and the need to ensure food and nutrition security for all. The World Food Day also coincides with the founding of the Food and Agricultural Organisation of the United Nations which is one of our key partners. This year’s event and theme recognised that water is essential for life on earth. Water makes up over 50 per cent of our bodies and covers about 7l per cent of the earth’s surface. However, only about 2.5 per cent of the water is fresh and suitable for drinking, agriculture and most industrial use. While fresh water remains a critical driving force for people, economies, nature and a foundation of our food, like any other resource, it is not infinite. With the increasing population and human activity as well as climate change, water resources are increasingly under stress. It is no wonder that over 2.4 billion of the global population is living in water-stressed areas. It is for this reason that the Ministry of Agriculture, Animal Industry and Fisheries is promoting Climate Smart Sustainable Agriculture by placing emphasis on optimal use of water resources. You are aware that water is integral to our production processes and this is also mirrored in the Ministry of Agriculture, Animal Industry and Fisheries’ effort to increase on-farm water access to as many water stressed areas as possible so that our people are not solely dependent on rain-fed agriculture. The national celebrations, as earlier highlighted, were held on 16 October 2023 at the National Coffee Research Institute at Kituuza, Mukono. The main event was preceded by a number of activities including the coffee night, which recognised the importance of coffee to Uganda and aimed at promoting a coffee drinking culture among Ugandans. Before we look to external markets for our coffee, we need to boost a sustainable domestic market. The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) was joined by a number of key stakeholders including the European Union, the Food and Agricultural Organisation, World Food Programme, Members of Parliament led by the Vice Chairperson of the Committee on Agriculture and MAAIF agencies, especially the National Agricultural Research Organisation (NARO) who were the hosts and Uganda Coffee Development Authority (UCDA). A number of exhibitions were organised showcasing research and value-added products like coffee, cocoa, rice, millet, sweet potatoes as well as simple machinery. I commissioned, on behalf of the Vice President, a multi-purpose coffee and cocoa laboratory funded by the Government of Uganda at a cost of Shs 5 billion at Kituuza to provide permanent solutions to pests and diseases as well as other constraints affecting production and productivity of the two crops.

“ Entities under the Committee on Public Accounts (COSASE): 1. Electoral Commission 2. Parliamentary Commission 3. Law Reform Commission 4. Uganda Human Rights Commission 5. Uganda AIDS Commission 6. National Planning Authority 7. Uganda National Meteorological Authority 8. Uganda Industrial Research Institute 9. National Curriculum Development Centre 10. Uganda National Roads Authority 11. Uganda Tourism Board 12. Uganda Road Fund 13. Dairy Development Authority 14. National Lotteries and Gaming Regulatory Board 15. Public Procurement and Disposal of Assets 16. Cotton Development Organisation 17. Uganda Land Commission 18. National Forestry Authority 19. Uganda Coffee Development 20. Uganda Free Zones Authority 21. Uganda Microfinance Regulatory Authority 22. Uganda Retirement Benefits Regulatory Authority 23. Science, Technology and Innovations -” Mr Speaker, before I –

To address the issue of radiologists, the Government directed that we revise the structures, as we wait for money for recruitment. The structures were revised, approved by the Ministry of Public Service, and taken on record by the Finance Ministry. As soon as money is available, we shall recruit –(Interjections)– you even have power challenges here, Hon. Nsereko. (Laughter) Mr Speaker, allow me to talk about the post- COVID 19 effects. My sister said that all the elderly men and women in her village died. I was wondering why others in other villages have not died– but perhaps, she has made an observation. Mr Speaker, let me inform this august House, that there is what we call long COVID-19, which I alluded to in the statement. It is a post- CPVID effect. Once you get severe COVID-19, the effect continues for a while. If you do not continuously go for medical check-ups, we are losing people due to long COVID-19. That is why I said, we have revised our guidelines to ensure that all those who got severe COVID, routinely go back for medical check-ups, check the capacity of their lungs, and ensure that they are functioning well. Regarding the vaccines, the honourable who wondered why we bought vaccines and spent a lot of money; the majority of the vaccines we received in the country were donations. However, yes, we also bought some, but you cannot force people to get vaccinated. We only counsel them, and we are continuing to do that. Mr Speaker, allow me to appreciate the honourable members for their concern, but again to clearly state that health is wealth. I continue to appeal to all of you to support us. We need power. As I conclude, Mr Speaker, my humble appeal, is that our health facilities should be connected to the industrial lines. If we continue to pay at the rate at which social services are being charged, we cannot afford it. The money that finance gives us can only pay for half the power. We need to go on the industrial line, or they need to exempt us from paying for power. Thank you.

Mr Speaker, the city has taken the biggest punches from this but allow me to commend Hon. Yeri Ofwono. I do not know what I will give you in my life. What you have stated is the gist of the matter; planning starts with the basics of address and postcode system, which is what the honourable colleague stated as demarcation because it gives basic data of individual traceability vis-a-vis what they are going to put physically on the ground. When you know where I am, you know who I reside with, you know how many people are in that locality and you can then integrate it in the digital cycle that we use in the modern planning system, which becomes cheaper. This correlates with what Hon. Ameede said. A proposal was made in 2019 and I have seen the draft national policy that was presented by the then Minister of ICT, Hon. Frank Tumwebaze. The issue is, wherever he would go, they would tell him, “Your country is a big slum because in a slum no one is traceable.” Relating to your proposal, Mr Speaker, we should start with traceability of individuals that are going to use the land; whether in urban or rural areas, like Hon. Nyakikongoro alluded. Only then can we talk about exhaustive land use in the country; whether it is for rural purposes, commercial, industrial, schools, or health –(Member timed out.)

Thank you, Madam Speaker. Close to two months ago, I was on this Floor raising a matter regarding the constant power blackout affecting Soroti City and the surrounding areas. We all know that His Excellency the President issued a letter to the Minister of Energy and Mineral Development that the Umeme concession is, probably, one that we are not going to renew. The challenges of Umeme are escalating by the day. In the constituency where I come from, Umeme no longer replaces transformers, services the power lines or invests in infrastructure yet, according to the concession agreement, the Government and Ugandans continue to meet their obligations. The people that I represent, who comprise those that live in the central business district (CBD) of Soroti and most of whom are involved in manufacturing, industrial work and other artisanal kinds of engagements, cannot operate anymore because they do not have power. I know the Rt Hon. Prime Minister promised that she would call a meeting in which the Umeme people and I would be in attendance. Madam Speaker, I wish to report that, that meeting has not happened. I therefore pray that this House takes up the matter of Umeme failing to supply electricity to Ugandans thereby affecting their economic productivity. We have a committee that can delve into this matter in detail – [Mr Sseggona: “Information.”] - I grant you the opportunity. (Interruption)

10212 STANDIN G C O M M I T T E E R E PORT So, they would mingle in order to avoid the accumulation of pension arrears, the hospitals paid pension from the gratuity budget. The committee observed that misclassification is diversion of funds, and most of the diversions were affected by statutory expenditure lines of salary, pension and gratuity. For example, Lira, Kawempe, and Jinja hospitals registered mischarges amounting to Shs 105 million, Shs 47.1 million and Shs 75 million respectively. It was also noted that, in some instances, the accounting officers over-budgeted and concealed funds under statutory items yet they were over and above the actual requirement. The committee further observed that diversion of funds is not only contrary to the provisions of the Public Finance Management Act, but negatively affects the delivery of services, and negates the purpose of budgeting by distorting approved plans. We recommend, therefore, that the affected accounting officers be reprimanded by the PS/ ST for diverting funds from one expenditure item without seeking authority and a report be given to Parliament within six months. The committee further recommends that the accounting officers should utilise the PFMA, 2015, which gives guidance on the virement and reallocation of funds within a Vote, should need arise. Unauthorised loan deductions Madam Speaker, this is a matter that keeps recurring year after year. The Auditor-General noted that in most regional referral hospitals, there were unauthorised loan deductions from employees’ salaries without letters of undertaking from the responsible officers. Accounting officers explained that this mainly arose from the staff transferred to new stations without their personnel files. In such cases, employees would have active deduction accounts without complete records at new stations. In some cases, non-transferred staff faced similar predicaments, thus attracting the attention of the Auditor-General. Accounting officers further informed the committee that problematic loans were contracted before Payroll Consults Africa came into existence and were being granted at the Ministry of Public Service level. However, currently, all loans are forwarded and granted, basing on a letter of undertaking by the accounting officer. Indeed, Madam Speaker, we have raised similar concerns of loan deductions, on behalf of the affected civil servants. We have also passed resolutions about this vice, but it continues. In Lira Hospital, for example, audit established that UCLA/UBA deducted Shs 12,591,781 from 15 staff without approval of the accounting officer from the payroll deduction management system (PDMS). The 15 staff were not in the “my approval report” but in the “active deduction report.” At Hoima Referral Hospital, the same group deducted Shs 21,015,298 from eight staff without the approval of the accounting officer from the PDMS. The committee observed thus: 1) Government continues to maintain manual staff files, which are not easily movable upon transfer of the affected staff; and 2) That the practice poses a risk of causing deduction without liability, thus depriving staff of their hard-earned funds. This may also expose the Government to litigation and, in some cases, industrial action. Further, the committee is cognisant of clauses 2.1.2 and 2.1.4 of the public service agreement between the Ministry of Public Service and the Uganda Consumers Lenders Association/ Uganda Bankers Association, which requires a letter of undertaking for each Government employee before making employee reservation on the PDMS. Therefore, under the said clauses, only deductions consented to by employees, in writing, should be submitted to the Ministry of Public Service for timely monthly payroll

Mr Speaker, thank you for protecting me from my friend. “… ACKNOWLEDGING that the human resource management function is pivotal in organisational strategic plan and maintenance of an effective, efficient and skilled workforce, which results in improved output and, ultimately, improved service delivery; CONCERNED that at present, there is no legal framework that regulates the human resource management practice and, as a result, there is no regulatory body that sets and enforces professional standards and professional code of conduct for the human resource management practice; FURTHER CONCERNED that the absence of a regulatory body has left the management of the most critical resource at the workplace to operate under varied professional standards with no professional referee, which has led to increased unprofessional conduct cases by human resource management practitioners and performance management challenges and endless industrial court cases; CONSIDERING that the human resource management function has become dynamic in order to cope with the social, economic, legal, political and technical innovations at both the regional and international levels, there is a need to professionalise the Human Resource Management practices in Uganda through regulations to facilitate the registration of members of the profession, the setting of uniformed professional standards and their enforcement/establishment of the professional

Mr Chairman, the committee is alive to the fact that most of these compounds are imported for other purposes like industrial purposes, making of soaps and so forth. However, in clause 6, what the committee proposed was not access or acquisition, but a diversion. If you are a wholesale importer and you import these chemicals, but then you divert

9805 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 16 AUGUST 2023 abuse, to promote international cooperation and to provide law enforcement agencies with resources to use to curb the problem. Policy and principles of the Bill The policy behind the Bill is to adopt measures to criminalise drug-related offences under the domestic law in conformity with Article 3 of the United Nations Conventions Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, and other related international conventions. The Bill is also intended to make provision for mechanisms to generate resources for law enforcement agencies through confiscating money and properties obtained from illicit trading in drugs, provide deterrence against local drug abuse and put in place a mechanism for rehabilitating drug addicts. The objects of the Bill The Bill seeks to: a) provide deterrent measures against local drug abuse; b) establish mechanisms for the rehabilitation of drug addicts; c) put in place measures to save Uganda from being a transit route and consumer of illicit drugs; d) facilitate cooperation with the international community in the fight against drug trafficking; and e) establish mechanisms for generating resources for law enforcement agencies. Relevance of the Bill Following the nullification of the Act, there is currently an absence of legislation to deal with the increasing cases of drug trafficking and abuse. The National Drug Policy and Authority Act, Cap 206, in relation to drug abuse, is very weak and does not adequately address cases of illicit drugs, especially in the face of Uganda risking being a transit route for drug consumers. Methodology Mr Speaker, the committee met with and received written memoranda from the following agencies, ministries and bodies: i) Ministry of Internal Affairs; ii) Ministry of Health; iii) Directorate of Government Analytical Laboratories; iv) Butabika National Referral Hospital; v) Criminal Investigations Department, Uganda Police Force; vi) National Drug Authority; vii) Centre for Legal Aid; viii) Wakiso Miraa Growers and Dealers Association Limited; ix) Uganda Medical Cannabis and Hemp Industry Association; x) Industrial Hemp Uganda Limited; xi) Human Rights Awareness and Promotion Forum; xii) Uganda Youth Development Network; xiii) Legal Brains Trust; xiv) Pearls of Africa CBD Limited; xv) Members of the Rastafari Community Uganda; (Laughter) xvi) Hon. Ambassador James Baba, Member of Parliament, Koboko, who was the sponsor of the Bill that was nullified; and

9810 THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES (CONTROL) BILL, 2023 THC content. These include: i) Low THC Cannabis, that is, derived from Cannabis strains or cultivas bred to have low THC (below the legal threshold defined by each jurisdiction). This is most sought after because of its higher CBD content and potential therapeutic benefits with minimal psychoactive effects; ii) High THC Cannabis, which is derived from Cannabis strains bred or selected for their elevated levels of THC (typically above the legal threshold defined by each jurisdiction). This category is mainly sought after by users seeking stronger psychoactive effects and euphoria for recreation purposes; iii) Marijuana, that is, mainly derived from Cannabis varieties with higher THC levels and primarily grown for recreational or medicinal use. It is rich in THC and has varying levels of cannabinoids, including CBD; iv) Hemp, mainly derived from Cannabis strains with deficient THC levels of 0.3 per cent or less dry weight per cent total THC in the United States and 0.2 per cent THC in many European Union countries. Hemp is cultivated for various industrial purposes including fibre, seeds and CBD extraction. It has minimal psychoactive effects due to its low THC content. Mr Speaker, currently, the licensing of the cultivation of plants yielding narcotics in Uganda is the responsibility of the Minister of Health, though in consultation with the National Drug Authority under Section 49 of the National Drug Policy and Authority Act, Cap. 206. To this extent, the committee was informed that Industrial Hemp Uganda Limited, a limited-by-guarantee company was one such licenced company currently growing and processing medical Cannabis. I have provided tables in the report that contain medical pros and cons of Cannabis. I beg that I continue because this literature is provided even if I do not read them. The source of these is the Directorate of Government Analytical Laboratory so it is an authoritative literature to guide us. The committee noted that due to its therapeutic characteristics, the importance of Cannabis in the pharmaceutical and healthcare industry is increasingly gaining traction. Many States in the US and countries in the West have approved medical Cannabis or medical marijuana, and the sector is one of the fast growing markets, as more countries legalise it. However, the committee observes that whilst some jurisdictions have relaxed restrictions on Cannabis, its abuse over psychotropic effects is more profound. This continues to pose severe risks to public health. The Directorate of Government Analytical Laboratories revealed that from its statistics of forensic casework between January 2021 and June 2023 – these are recent statistics - it retrieved 178 cases of narcotic drugs, in 2021, 295 cases, in 2022 and 83 cases from January to June 2023. From these, Mr Speaker, Cannabis was the most abused drug, making 68.2 per cent, in 2021, 80.1 per cent, in 2022 and 76.4 per cent, in 2023. It was found that Cannabis was largely affordable and associated with criminal cases related to theft, burglaries, violence and accidents. The committee interrogated the efficacy of literature and medicinal effects about catha edulis or Khat , also locally known as “ Miraa ” or “ Mairungi ”. The Director of the Government Analytical Laboratory informed the committee that Khat , natively grown in East Africa and the Arabian Peninsula, was a flowering evergreen shrub abused for its stimulant-like effect. The leaves are traditionally chewed fresh and sometimes dried for tea or chewable state. In Uganda, Khat has increasingly gained traction as a cash crop due to its associated advantages requiring less labour, small scale

Mr Chairperson, I want to interest the chairman of the committee. I hope you know a free zone. It means there are some laws which do not apply to it. The moment you allow free zones not to be mentioned here, you are allowing any place in Uganda to be gazetted as a free zone. Let me give an example of the airport. This means if a plane flying a Kenyan flag lands in Entebbe in a free zone while carrying drugs, it will not be touched. That is what you must know. Two, even if you create an industrial park and say this is a free zone, there are laws of this country which will not apply there. So, chairperson, my interest is that free zones should be added to the territory of Uganda. The justification is to avoid anybody to use a free zone as a conduit to bring in drugs.

Thank you very much. I want to thank the Chairperson of the Committee on Defence and Internal Affairs for the submission. However, I want to give this information that these plants we are talking about cannot only be used for medical purposes. With time, you will discover that they can be used in industrial textiles, for making printing papers, building materials and other food ingredients. This is lucrative income we can get from these other products. So, I do not know why we should restrict them to only medical.

Thank you, Madam Speaker. I beg to move a motion seeking leave of this august House to introduce a Private Member’s Bill entitled, “The Anti- Counterfeiting Bill.” This motion is moved under Article 94(4) of the Constitution of the Republic of Uganda, Rules 56, 121 and 122 of the Rules of Procedure: “WHEREAS Article 79 of the Constitution of the Republic of Uganda empowers Parliament to make laws on any matter for the peace, order, development and good governance of Uganda; AND WHEREAS Article 94(4)(b) of the Constitution of the Republic of Uganda and Rules 121 and 122 permit a Member of Parliament to move a Private Member’s Bill; AWARE THAT in Uganda, there are various laws regulating the registration and exploitation of intellectual property assets, including the Constitution of the Republic of Uganda; the Copyright and Neighbouring Act, 2006; the Trade Secrets Protection Act, 2009, the Trademarks Act, 2010; the Geographical Indications Act, 2013; the Industrial Property Act, 2014; and the Plant Variety and Protection Act,2014; NOTING THAT there is an increase in the uptake of intellectual property assets through registration and creation of trademarks, service marks, commercial names and designations, inventions in all fields of human endeavour, industrial designs, scientific discoveries, literary, artistic and scientific works, performances of performing artists, producers of phonograms and broadcasters, protection against unfair competition and protection of trade secrets; FURTHER NOTING THAT the increased registration and exploitation of intellectual property assets has significantly contributed to innovation and creativity, which in turn have contributed to socio-economic transformation of the Ugandan economy through increased revenue, employment opportunities, creation of joint ventures, protection of trade and commercial secrets from being disclosed, acquired or used by others without consent; CONCERNED THAT enforcement mechanisms –(Interruption)

9685 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 19 JULY 2023 It is true that the numbers of medical schools have increased over time, and therefore, the number of students who require to do internship has increased over time. This matter is being discussed within the Executive, like the Prime Minister has said. We call upon our doctors, nurses, and pharmacists to be patient as the Government mobilises the resources to enable them to start the internship. There is no need for a strike or industrial action. As the Prime Minister has said, the Government is aware of these numbers and arrangements are being made within the Government. So, I just wanted to give that information.

9519 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 11 JULY 2023 wrongly claimed insurance costs with interest; f) Through the Ministry of Energy and Mineral Development, the Government of Uganda should initiate processes to renegotiate power purchase agreements with Bujagali Energy to provide a cap to return on equity and utilisation factor to reduce the tariff costs; g) Uganda Revenue Authority (URA) should undertake a comprehensive tax audit on Bujagali Energy Limited to ascertain compliance with tax obligations and also recover all the taxes due from Bujagali Energy Limited prior to exemption; h) The Government of Uganda should institute a strong monitoring team to ensure the integrity of the facility until its handover; i) Government should buy out a percentage of the debt to lower tariff costs in the long term. Additionally, financing projects such as the Bujagali Hydropower Project through internally generated resources like equity would be cheaper. Government should consider the listing of Uganda Electricity Generation Company Limited (UEGCL) to solicit capital from the public; j) Uganda Electricity Generation Company Limited (UEGCL) should put in place strategies to increase power supply so as to meet the growing demands. Madam Speaker, I have just reiterated the recommendations that were made by the ad hoc committee. The committee, therefore, observed that Government is undertaking the following actions to implement the select committee’s recommendations: i) The process to undertake the audit on Bujagali Energy Limited has begun with a number of preparatory meetings held with the Auditor-General. In addition, the draft terms of reference for the assignment have been finalised. These were laid before the committee during our interaction with the Ministry of Energy and Mineral Development. The audit is anticipated to take a period of six months upon commencement. ii) The Government of Uganda Committee was established to review the process of initiating renegotiation of the power purchase agreement. The committee includes the Attorney-General, the Ministry of Finance, Planning and Economic Development, the Ministry of Energy and Mineral Development and the Electricity Regulatory Authority. iii) The Uganda Revenue Authority has commenced a tax audit of Bujagali Energy Limited and the audit will inform the next course of action. iv) Quarterly monitoring of all power plants in the country is being carried out by the Ministry of Energy and Mineral Development and Electricity Regulatory Authority (ERA), including Bujagali Power Plant. The Ministry of Energy and Mineral Development is analysing a financing framework to recapitalise and ensure financial stability on the Government of Uganda companies of UEGCL, UETCL and UEDCL. These companies will take over operation of the various electricity infrastructure as the respective private concession agreements come to a natural termination. Madam Speaker, the Ministry of Energy and Mineral Development has implemented the following electricity demand growth initiatives: a) Cooking tariffs for domestic consumers for 70 units ate lower tariff Shs 412 kilowatts per month; b) Rebate policy to facilitate quick connection of the industrial consumers to the national grid;

9520 DEBATE ON THE ADDRESS ON THE STATE OF THE NATION c) Declining block tariff structures for large and extra-large industrial consumers; d) Investment in development of substation and electricity infrastructure in industrial parks like Luzira, Namanve, Kapeeka, Mukono, Iganga, Mbale, Entebbe, Mirama Hill among others; e) Investment in improvement of reliability and quality of supply; f) Change of the industrial tariff structure to provide for low retail tariff for industrial consumers that commit to increase demand; g) New connection through a hybrid financing framework is also under consideration; and h) Regional power trade. Therefore, the committee concludes that it is necessary to grant a one-year extension to Bujagali Energy Limited in order to protect the end users from high tariff while at the same time enabling Government to implement recommendations of the Parliament on the same. The committee recommends that Corporate Income Tax for Bujagali Energy Limited be waived for one year. I hereby submit.

9522 DEBATE ON THE ADDRESS ON THE STATE OF THE NATION Next year, you increase to Shs 250 million - we are assuming these are businesses that have started making a profit immediately. But for most businesses, when you start, it takes about three to four years before it starts generating some profit. We have assumed that in the first year, you have started making and the same for the second year; add back Shs 1 billion, remove Shs billion as a capital allowance, and you have a Shs 4.5 billion carry loss. The next year, you make Shs 300 million - by the fifth year, you would still have a loss of Shs 3.5 billion. This loss is caused due to capital allowances. Madam Speaker, you would be making trading profits, but this would lead to tax loss as per the law. To address the main issue of capital allowance, I will look at it through the following: i) Removing section 27A, which we have done. The moment we do that; it means companies are going to take a lesser time to deal with the recovery of capital. So, there are no more initial capital allowances. ii) The rate under the Sixth Schedule - I will give an example. In earlier years, industrial buildings were being given 2 per cent as a capital deduction. They were assuming that the industrial building would live for 50 years, but now, you are at 40 per cent. Hotels were being given 4 per cent, now, you are at 40 per cent. So, these big capital allowances as per law, are the ones causing big deductions in arrears and leading to taxable losses. Madam Speaker, every year URA goes to Brussels for what they call World Customs Organisation. There is a huge book; it has even the price of a pin. Even this bottle is in that book. This means URA must use those World Custom Organisation rates to determine the price. Everything is in that book. Why are they getting defeated? Somebody brings a pin for Shs 1,000 and claims Shs 5,000. This is a weakness on part of URA and we cannot make a law to promote weaknesses or inefficiencies.

Mr Speaker and honourable colleagues, Hon. Aisa Agaba, Member of Parliament of Bugangaizi said that we have 18 Industrial hubs in this country and that the President recently commissioned one hub; the industrial scaling centre in Masaka, which made the hubs 19 in total. Her prayer that the Rt Hon. Prime Minister updates this

9448 STANDING COMMITTEE REPORT House on the Greater Masaka Industrial Skilling Centre. The Greater Masaka Industrial Skilling Centre is part of the 19 zonal industrial hubs countrywide. This Industrial Skilling Centre was launched by the President on 24 May, 2023. I participated fully in this launch because I was present. The hub offers free hands-on training to the youths aged between 18 to 35 years drawn from the nine districts that make up the Greater Masaka Subregion and the Masaka City. These include; Rakai, Lyantonde, Kyotera, Masaka, Masaka City, Lwengo, Bukomansimbi, Kalangala, Kalungu and Ssembabule. The industrial hub is a presidential initiative by His Excellency, Yoweri Kaguta Museveni. The objective of the hub is to, among others, eliminate unemployment among the youth and change the economic status of the people who never had the chance to attain formal education. The hub offers services such as: (i) Hands on training to the youths (skilling); (ii) Value addition; that is coffee and maize hullers have been delivered to add value to coffee and maize respectively; (iii) The common user facilities are also there. State of the art machines in welding and carpentry. Trades have been installed for common use by both graduate trainees and the community. This will enhance their income through increased production; and (iv) There is a Four-Acre Demonstration Farm to train farmers in the respective regions. This is across the country. This will contribute to the transformation of Uganda into a middle-income economy through imparting skills. The courses offered, among others, include tailoring, hairdressing, building and construction, carpentry and joinery, metal fabrication, food processing and bakery. Currently, the hub has a total of 221 trainees who are undertaking this training at Masaka Zonal Industrial Hub. Upon completion of the six months’ hands-on training, the trainees will obtain a minimum level one certificate of Uganda Vocational Qualifications under the Directorate of Industrial Training and the Ministry of Education and Sports and are ready to be self-employed. The Youth Skilling Hub was launched at Kiyimbwe Village in Bugabira Parish in Masaka. Mr Speaker, this is a great opportunity and I urge the youth to take advantage of this presidential initiative that will improve their livelihood. The second question came from Hon. Oguzu Lee Dennis, a Member of Parliament, Maracha County. The Uganda Intergovernmental Fiscal Transfers Program-

Thank you, Mr Speaker. I am only going to make comments on about four or five questions. Madam Prime Minister, the Masaka Industrial Skilling Centre has serious issues. As we talk, popular community participation is lacking in every aspect. Government has avoided the participation of stakeholders; the leadership. The selection of participants is skewed in favour of NRM cadres and it is done directly by the RDCs. I am just being a whistleblower. Madam Prime Minister, you better intervene because RDCs are the ones recruiting participants literally. The second one was raised by Hon. Oguzu Lee on the Uganda Inter-Governmental Fiscal Transfers. This is a very important programme but the challenge that we have - Even your response is shy of expounding on what is causing or rather what we could attribute the delays of works to. I suppose you are paying attention to the response. This programme is supposed to improve fiscal management of resources by local Governments, not only in the education sector but also in the health sector. Your response is only making mention of the education sector, not knowing that the challenges that are caused by delays of works have resulted in serious contingency liabilities, even loss of lives and the serious service delivery concerns. I think I should combine this response with what Hon. Magyezi responded to. You dispensed justice to your questions but the one-million- dollar question about these unspent balances, which are even generated by Uganda Inter- Governmental Fiscal Transfers is, even when they are returned to the Consolidated Fund as per the law, why is it that they are never ever reflected anywhere in our books of accounts? When will the re-voting ever occur in time? There are commitments that are made but the re-voting is never done in good time – (Interjection)– Yes, there is a concern, for instance, in Maracha where works have stalled. A number of these contractors have been fully paid but they have mysteriously disappeared. Those that are there are very thin on the ground. So, your investigative machinery must be deployed. Lastly, Mr Speaker, there is this standoff between Uganda and Sudan. I read a newspaper article this morning online, The East African, and it said that 120 tonnes of Uganda’s harmful maize was blocked. Look it up. You know the disastrous effects of such a statement.

9464 STANDING COMMITTEE REPORT The Accounting Officer submitted that these had increased generally and noted that there were various categories of debtors. Water for commercial purposes had an outstanding amount of Shs 29 billion; domestic purposes was Shs 63 billion; embassies Shs 219 million; industrial purposes Shs 1.6 billion and Ministries, Departments and Agencies (MDAs) Shs 70.6 billion. He submitted that the bills for MDAs were particularly worrying because, while for other debtors, the money owed was for an average of three months, the average time for MDAs was 13.5 months; that is over a year. We provide a table there showing how much each of these different entities owes National Water and Sewerage Corporation. I will just highlight some of the outstanding ones. Other hospitals, aside from Mulago National Referral Hospital, that is Shs 6.9 billion which they owe in water bills; Ministry of Defence – Shs 27.4 billion; Mulago National Referral Hospital – Shs 1.96 billion; Uganda Prisons – Shs 11.8 billion; Uganda Police Service which is second to Ministry of Defence – Shs 23.3 billion. The Accounting Officer submitted that the average billing was about Shs 5 billion per month for MDAs. Mr Speaker, allow me to skip this and go to the observations. The committee observes that the failure by MDAs to pay their water bills affects the corporation’s operations, and makes it difficult for the corporation to clear its obligations. Additionally, paying VAT on accrual basis severely affects the cash flow of the corporation, especially where MDAs with huge bills do not pay on time. The committee recommends that: (i) The Accounting Officers for all the MDAs with arrears in conjunction with the Ministry of Finance, Planning and Economic Development should settle all outstanding arrears within six months from the date of the adoption of this report. (ii) The Ministry of Finance, Planning and Economic Development should ring-fence funds to pay the utilities of all MDAs, to avoid the accumulation of arrears. Creditors The committee noted that National Water and Sewerage Corporation owes its creditors Shs 184 billion. The accounting officer submitted that Shs 18 billion (10 per cent) of the debts were within a credit period of 60 days, while those amounting to Shs 166 billion were over 60 days. The credit period of NWSC is 60 days. The committee was further informed that debts amounting to Shs 63 billion relate to the SCAP 100 project (which aims to extend water to the entire country). The costs of the project are shared between NWSC (60 per cent) and Government of Uganda (40 per cent). Whereas the Government of Uganda budget on the project in Financial Year 2022/2023 Shs 55 billion, as of December 2022, only Shs 10 billion had been released, leaving a deficit of Shs 45 billion. He also explained that the aftermath of COVID-19 where water was not being paid for by some sections of the population was a challenge, and that as a result, some consumers were not paying as well as they should. The committee observes that the failure of Government to honour its co-funding obligations impairs the ability of the corporation to settle its obligations as well as cater for its operations. We recommend that the Ministry of Finance, Planning and Economic Development allocates the balance of unreleased funds for all co- funded projects to the corporation to enable it clear its obligations. Complaints of inflated water bills The committee got complaints from members of the general public about inflated costs. The complaints were that NWSC estimates their bills and charges exorbitantly without proper justification, saying that in some months, the water bills are extremely high yet there has

Thank you, Mr Speaker and the committee. I think this report should put our sectoral committees on notice that when MDAs and ministries present ministerial policy statements where they report the half-year financial statement, we will have to scrutinise and put them to task. That way, we will know if they are not paying as a result of money not being released to them or if it is released and they put it to different use. Secondly, National Water and Sewerage Corporation have two ways of billing. One, if you are not careful, they can connect you but not charge you for residential use. Many people at construction time are charged under industrial use. Even when you complete, they maintain that. If you are not careful, they continue charging you and that is when you find that the bill keeps on going higher. Thank you.

9339 THE ELEVENTH P ARLIAMENT OF UGANDA TUESDAY , 4 J ULY 2023 years, as large part of the population joins the money economy. The industrialisation drives across the country have brought about positive results. There are eight Government-owned industrial parks, which are operational in Namanve, Luzira, Bweyogerere, Soroti, Mbale, Jinja, Mbarara and Kasese. The industrial parks in Karamoja and Koboko will soon commence. In addition, there are three industrial parks operating under the Public-Private Partnership (PPP) arrangement. The total number of factories is now 4,008, employing 150,685 Ugandans, largely the youth, who form part of the biggest percentage of our population. This is a reflection of socio-economic transformation. The President emphasised the Parish Development Model that will accelerate socio- economic growth, where 39 per cent of the households in the non-money economy will be moved to the money economy. This approach will organise and deliver public and private sector interventions for wealth creation and employment generation. His Excellency the President launched a wealth and jobs creation initiative for those who found it difficult to access financing through banks called “ Emyooga .” This initiative has been successful in mobilising, especially the youths and women in the informal sector into productive self-employment by increasing their skills, acquiring equipment and accessing affordable capital. As at the end of December 2022, seed capital amounting to Shs 258 billion had been disbursed to 6,714 Emyooga SACCOs and Shs 1,000,000 to individual beneficiaries. His Excellency the President indicated that tourism has had a significant potential for the economy. The sector has registered key achievements. For example, it employs 1.5 million Ugandans along the entire tourism value chain and contributes 6.7 per cent of the GDP. In the year 2022, Uganda’s national parks hosted 367,869 visitors; leisure and holiday visitors stayed longer and the wildlife populations have increased. These numbers have grown and increased Uganda’s Government’s focus on infrastructure and marketing. The President stressed that social metamorphosis takes place when societies undergo modernisation. In modernised countries, a small percentage of people are involved in agriculture. A country must be supported to move to value addition and manufacturing. Thus, in order to build a knowledge-based economy using advanced scientific knowledge, the President called upon Members of Parliament support to Kiira Motors to get moving so that the production of automobiles becomes part of the economy. The President commented on the Anti- Homosexuality Bill and commended the Parliament of Uganda for passing it. He raised the substantive points that should be used to explain Uganda’s position. His Excellency the President outlined the economic priorities of the Government in the next financial year, which include peace and security of persons and property, effective implementation of PDM and Emyooga , acquisition of right-of-way for Standard Gauge Railway (SGR), investing in small-scale solar- powered irrigation to address climate change and food security, constructing transmission lines and power substations, maintenance of both tarmac and murram roads, development of industrial parks, support medical schools and scientific-based research, expediting the infrastructure of oil and gas, capitalising UDB and UDC and supporting ICT. In conclusion, let me take this opportunity to thank His Excellency the President, Gen. Yoweri Kaguta Museveni for steering the NRM government to expand the economic base of the country and a strong foundation that has been built for rapid economic growth and socio-economic transformation. I beg to move.

Thank you, Mr Speaker. First of all, I support the motion. However, I would like to bring to the attention of the minister that as he talked about increasing the number of the judges, he should also consider appointing judges to the Industrial Court. There are currently two judges only, yet when Parliament amended the Labour Disputes (Arbitration and Settlement) Act, 2006, we increased the number of judges to five. Honourable minister, when you go to that court, you will notice that there is a backlog of around 2,700 cases, yet you always say – as learned friends – that: “Justice delayed is justice denied.” Therefore, I appeal to you to also consider appointing judges to the Industrial Court. I know that the Industrial Court falls under the labour ministry, but I know judges fall under your ministry. Thank you.

9339 THE ELEVENTH P ARLIAMENT OF UGANDA TUESDAY , 4 J ULY 2023 years, as large part of the population joins the money economy. The industrialisation drives across the country have brought about positive results. There are eight Government-owned industrial parks, which are operational in Namanve, Luzira, Bweyogerere, Soroti, Mbale, Jinja, Mbarara and Kasese. The industrial parks in Karamoja and Koboko will soon commence. In addition, there are three industrial parks operating under the Public-Private Partnership (PPP) arrangement. The total number of factories is now 4,008, employing 150,685 Ugandans, largely the youth, who form part of the biggest percentage of our population. This is a reflection of socio-economic transformation. The President emphasised the Parish Development Model that will accelerate socio- economic growth, where 39 per cent of the households in the non-money economy will be moved to the money economy. This approach will organise and deliver public and private sector interventions for wealth creation and employment generation. His Excellency the President launched a wealth and jobs creation initiative for those who found it difficult to access financing through banks called “ Emyooga .” This initiative has been successful in mobilising, especially the youths and women in the informal sector into productive self-employment by increasing their skills, acquiring equipment and accessing affordable capital. As at the end of December 2022, seed capital amounting to Shs 258 billion had been disbursed to 6,714 Emyooga SACCOs and Shs 1,000,000 to individual beneficiaries. His Excellency the President indicated that tourism has had a significant potential for the economy. The sector has registered key achievements. For example, it employs 1.5 million Ugandans along the entire tourism value chain and contributes 6.7 per cent of the GDP. In the year 2022, Uganda’s national parks hosted 367,869 visitors; leisure and holiday visitors stayed longer and the wildlife populations have increased. These numbers have grown and increased Uganda’s Government’s focus on infrastructure and marketing. The President stressed that social metamorphosis takes place when societies undergo modernisation. In modernised countries, a small percentage of people are involved in agriculture. A country must be supported to move to value addition and manufacturing. Thus, in order to build a knowledge-based economy using advanced scientific knowledge, the President called upon Members of Parliament support to Kiira Motors to get moving so that the production of automobiles becomes part of the economy. The President commented on the Anti- Homosexuality Bill and commended the Parliament of Uganda for passing it. He raised the substantive points that should be used to explain Uganda’s position. His Excellency the President outlined the economic priorities of the Government in the next financial year, which include peace and security of persons and property, effective implementation of PDM and Emyooga , acquisition of right-of-way for Standard Gauge Railway (SGR), investing in small-scale solar- powered irrigation to address climate change and food security, constructing transmission lines and power substations, maintenance of both tarmac and murram roads, development of industrial parks, support medical schools and scientific-based research, expediting the infrastructure of oil and gas, capitalising UDB and UDC and supporting ICT. In conclusion, let me take this opportunity to thank His Excellency the President, Gen. Yoweri Kaguta Museveni for steering the NRM government to expand the economic base of the country and a strong foundation that has been built for rapid economic growth and socio-economic transformation. I beg to move.

Thank you, Mr Speaker. First of all, I support the motion. However, I would like to bring to the attention of the minister that as he talked about increasing the number of the judges, he should also consider appointing judges to the Industrial Court. There are currently two judges only, yet when Parliament amended the Labour Disputes (Arbitration and Settlement) Act, 2006, we increased the number of judges to five. Honourable minister, when you go to that court, you will notice that there is a backlog of around 2,700 cases, yet you always say – as learned friends – that: “Justice delayed is justice denied.” Therefore, I appeal to you to also consider appointing judges to the Industrial Court. I know that the Industrial Court falls under the labour ministry, but I know judges fall under your ministry. Thank you.

Madam Speaker, the following Members are designated to the Committee on Finance, Planning and Economic Development: 1. Hon. Paul Omara of Otuke County; 2. Hon. Karim Masaba - Industrial Division, Mbale City; and 3. Hon. Mpindi Bumali - PWD Representative. I beg to designate.

9115 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 15 JUNE 2023 at 10.7 per cent. Last month, the pace at which prices were rising slowed down to 6.2 per cent. Prices of key items such as soap, sugar and fuel at pumps, among others, have significantly reduced. With respect to the cost of money, commercial bank lending interest rates have increased slightly to 19.3 per cent in April 2023, up from 18.8 per cent in April 2021. This was mainly caused by the increase in the Central Bank rates of 10 per cent since October 2022 in order to fight inflation. In order to reduce the cost of money for the private sector, the Government has taken the deliberate policy to reduce domestic borrowing, which is a major driver of commercial bank lending rates. In addition, the Government has also provided long-term and affordable capital through the Uganda Development Bank, Emyooga , the agricultural credit facility and the Small Business Recovery Fund to large, medium, small and micro enterprises. A total of Shs 2.7 trillion has been provided to date. Private sector credit Despite the increase in interest rates, the total private sector credit increased from Shs 19.5 trillion in May 2022, to Shs 20.5 trillion in April 2023, representing an annual growth of 4.8 per cent. The growth in lending to industry and agriculture was 6.2 per cent and 3.3 per cent, respectively. Trade and personal lending recorded an annual growth of 14.1 per cent and 19.1 per cent, respectively in the same period. This underscores the ongoing Government intervention to ensure that agriculture and industry access adequate and affordable financing on a sustainable basis. Exchange rate Madam Speaker, the Uganda shilling has remained stable against major global currencies despite the strengthening of the US Dollar. Between April 2022 and April 2023, the Uganda shilling depreciated by 5.8 per cent against the US Dollar, compared to another depreciation rate of 8 per cent within the East African Region. Twekubireko mungalo, banange . (Applause) Let me repeat this: the Uganda shilling remained stable against major global currencies despite the strengthening of the US Dollar. Between April 2022 and April 2023, the Uganda shilling depreciated by 5.8 per cent against the US Dollar, compared to an average depreciation rate of 8 per cent within the East African region. The stability of the exchange rate is due to an increase in foreign direct investment inflows into the oil and gas sector, significant recovery in tourism and the recent good performance of exports. External Trade By April 2023, Uganda’s exports of merchandise goods amounted to $4.2 billion, compared to $3.1 billion over the same period of the previous financial year. This represents a 35.5 per cent increase mainly driven by an increase in exports of gold, coffee, fish, sugar, beans, maize and light manufactured products to the regional markets. The NRM Government has provided support through different initiatives to boost exports. These include the provision of long-term and affordable capital, investment in transport infrastructure and energy in particular, and building industrial parks. These efforts have started yielding results. The manufactured exports have emerged as a major contributor to merchandise exports. For example, in the year 2022, Uganda exported sugar worth $163 million, cement worth $87 million, plastics worth $61 million, soap $31 million and beer worth $29 million. There were no exports of any of these items as recently as 2006. (Applause) Thank you very much but I need to hear it louder - (Laughter) - so that this coming financial year, we work harder like horses. At the regional level, by April 2023, we had recorded a trade surplus with the East African Community trading partners of $1 billion.

9117 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 15 JUNE 2023 c) Maintenance of both tarmac and murram roads; and d) Continued investments in industrial parks and energy transmission lines; e) Provision of affordable credit for micro and small enterprises and low-income groups through the Small Business Recovery Fund; Emyooga and Microfinance Support Centre; and funding for medium to large enterprises, through the Uganda Development Bank; f) The provision of quality seedlings, pesticides, fertilisers, storage and marketing in the agro-industrialisation value chain in order to increase agricultural production and productivity; g) The rapid development of oil and gas production, specifically the construction of the East African Crude Oil Pipeline and the National Oil Refinery; h) The expansion of our skilled labour force to meet the demand of a diversified economy, especially industrial skills; i) The mitigation of the negative impact of climate change on the economy and our livelihoods; j) The implementation of the Greater Kampala Metropolitan Infrastructure Development Master Plan; and k) The maintenance of peace and security of persons and property as the bedrock on which the above is based. Madam Speaker, as a result of these interventions, Uganda’s economy is projected to grow at 6 per cent in the Financial Year 2023/2024. See what I was telling you! Over the next five years, the economy is projected to grow at an average of 6.5 - 7.0 per cent per year. Twekubireko mungalo as Ugandans, banange ; these things are not common everywhere. Financial Year 2023/2024 budget priorities Madam Speaker, the budget for the next financial year is aimed at achieving the following broad objectives: 1. Urgent completion of key public investments with higher multiplier effects on the attainment of NDP III targets and the NRM 2021 – 2026 Manifesto; 2. To enhance revenue mobilisation and collections; 3. The full-scale operationalisation of the Parish Development Model; and 4. To enhance the Government’s efficiency and effectiveness through rationalisation of public expenditure and payroll audit, among others. The key priorities funded to achieve these objectives are the following: 1. Boosting household incomes and microenterprises 2. Commercialising agriculture to enhance production and productivity and improve competitiveness of agricultural products; 3. Supporting private sector growth; 4. Investing in the people of Uganda – and I must emphasize that one; 5. Improving the stock and quality of infrastructure; and 6. Expediting the implementation of strategic interventions in innovation, research and development, and the minerals, oil and gas industry. Madam Speaker, in order to effectively implement these strategic priorities, the Government shall ensure peace and security, good governance and the rule of law, as the bedrock for economic activities.

9118 BUDGET SPEECH, 2023 I now turn to detail the key actions we will be undertaking in these strategic priorities: Boosting household incomes and microenterprises Madam Speaker, the Parish Development Model will boost household incomes as well as the development of microenterprises. Since the launch of the Parish Development Model in February 2022, a total of Shs 590.2 billion has been disbursed to all 10,459 parishes nationwide, translating into Shs 50 million per parish. The balance will be disbursed by the end of this month. Next financial year, the Parish Development Model has been allocated Shs 1.1 trillion. The Emyooga Initiative will further boost household incomes and microenterprises at parish and sub-county levels by directly funding parish and sub-county enterprise groups. By March 2023, seed capital worth Shs 494 billion had been disbursed to 6,721 constituency-based Emyooga SACCOs. Over 600,000 individuals had successfully applied for credit from their parish-based associations. Nearly half (46 per cent) of these were women - abakyala mwekubire mungalo. Women are very persistent; when they say they will do something, they do it – 25 per cent were youth and 4 per cent were PWDs. These SACCOs have also mobilised savings of Shs 76 billion and a further Shs 80 billion recovered from the loans given to beneficiaries. Now, somebody said the Emyooga is non- performing; he does not know what he is talking about and I am sorry for that type of person. This demonstrates the sustainability of the Emyooga initiative. Next year, Shs 100 billion has been allocated to the Emyooga initiative. Madam Speaker, in order to grow local enterprises, 19 skilling centres have so far been established across the country under the Presidential Industrial Hubs Initiative. So far, 28,750 trainees have successfully completed training in skills programmes and 6,110 trainees are undergoing training in various fields. The skilling centres include Our Lady of Fatima Catholic Church Nakulabye, Luzira Prisons, Sub-Way Crested Towers, Wabigalo Parish Community, Butikirwa Kigoowa-Ntinda and Makerere Community Hall. This support will continue over the medium term. Next financial year, Shs 60 billion has been allocated for skilling the youth. Commercialising agriculture Madam Speaker, during this year, additional funding amounting to Shs 110 billion was provided for food security interventions in Government institutions with farms, including the UPDF, Uganda Prisons, Ministry of Agriculture, Animal Industry and Fisheries, National Agricultural Research Organisation and National Agricultural Genetics Resource Centre and Databank. The priority actions to commercialise agriculture next financial year include the following: 1. Support agricultural research for the development of climate-resilient crops and animal species; 2. Promote environmental conservation, restoration and protection of degraded water catchment areas and forest cover; 3. Construct small, medium, and large-scale irrigation schemes in water-stressed areas. These will include the construction of earth dams at Unyama in Gulu, Namalu in Nakapiripirit, Sipi in Bulambuli and Kabuyanda in Isingiro, among others; 4. Implement large-scale mechanisation and irrigation; and 5. Improve farmer mobilisation, education and partnerships with large commercial farmers for the production of strategic commodities such as coffee, maize and tea to meet national and international demand.

9119 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 15 JUNE 2023 Madam Speaker, Shs 2.24 trillion has been allocated for food security, irrigation, climate change mitigation, value chain development, agricultural research and disease/pest control, among others. Supporting private sector growth Madam Speaker, the private sector has been directly supported through industrial parks’ development, promoting Small and Medium Enterprises (SMEs) and facilitating tourism. Industrial development and investment Madam Speaker, eight Government-owned industrial parks are currently operational at Namanve, Jinja, Bweyogerere, Mbale, Soroti, Mbarara and Kasese and Luzira. In addition, there are three industrial parks developed under a public-private partnership arrangement at Kapeeka, Mukono and Buikwe. The Uganda Investment Authority has acquired 12 square miles for industrial development, provided by various local governments in 18 zones across the country. Uganda’s global reputation as an investment destination has been boosted significantly in the recent past. Uganda has been named the No. 1 investment destination in East Africa by AIM Global 2023 at Dubai. In addition, our country has been ranked among the top 10 African countries for the best investment destinations in Africa by the African Development Bank. It is now also ranked the first in East Africa for capital market growth by Absa Bank. SME development Madam Speaker, SMEs in the manufacturing and export sectors will be supported with US$ 20 million under the Investment for Industrial Transformation and Employment Trust (INVITE Trust), which will provide grants and concessional credit to qualifying SMEs. These SMEs will access new and innovative financing products with long-term financing of up to 15 years. This intervention aims at increasing Ugandan manufactured export products, generating direct and indirect jobs for more than 200,000 workers and safeguarding existing jobs for 530,000 workers. Madam Speaker, an allocation of Shs 209.28 billion has been provided through the INVITE project next year. Tourism Uganda has increasingly been recognised as a tourism destination and is ranked by CNN as one of the top 10 tourist destinations in the World. We will, therefore, promote domestic and inbound tourism, including the use of digital platforms. Uganda will also be marketed as a global and regional centre for Meetings, Incentives, Conferences and Exhibitions (MICE). Hospitality standards will be enforced through the licensing, grading and classification of tourism facilities. Shs 249 billion has been allocated for the promotion of tourism. Madam Speaker, all the private sector interventions I have detailed above have been allocated Shs 2.37 trillion. Building human capital Madam Speaker, Uganda has registered visible improvements in healthcare outcomes, access to knowledge and a decent standard of living. On average, a Ugandan now lives longer – at 64 years, up from 53 years just as recently as 2015 – attains more years of schooling and enjoys a higher income per capita than ever before. Let me repeat this because it is interesting, especially to me who is working day and night to make sure that the youth and the sick are helped to recover: Uganda has registered visible improvements in healthcare outcomes, access to knowledge and a decent standard of living. On average, a Ugandan now lives longer

9122 BUDGET SPEECH, 2023 commence next financial year. Forty-nine per cent of the right-of-way for the Kampala- Malaba Standard Gauge railway has been acquired. The construction of the Malaba- Kampala Standard Gauge Railway will commence next financial year, for which Shs 535 billion has been provided. Madam Speaker, in the air transport sector, the redevelopment and expansion of Entebbe International Airport is at 85 per cent complete and due to be completed by July 2024. The construction of Kabalega International Airport now stands at 91.7 per cent and will be completed by September 2023. We shall also rehabilitate and upgrade the following aerodromes that are under feasibility studies: Kidepo, Pakuba, Mbarara, Gulu, Arua, Kisoro and Kasese. Madam Speaker, an allocation of Shs 4.5 trillion, representing 13.3 per cent of the total budget has been budgeted for road maintenance and construction; railway development and rehabilitation; and water and air transport development. Of particular significance, an allocation of Shs 1 billion has been provided to each district, city and municipality for road grading, murram and compacting. In total, Shs 176 billion has been allocated for this purpose. (Applause) We have also secured US$ 608.7 million, equivalent to Shs 2.25 trillion to address flooding, traffic congestion, poor road infrastructure, un- signalised junctions and unemployment in the Greater Kampala Metropolitan Area (GKMA) covering Kampala, Wakiso, Mukono and Mpigi districts and their municipalities. This will upgrade 504 kilometres of roads including junction signalisation in eight urban authorities; rehabilitation of 30 storm water drainage points; upgrade 23 markets and construct 25 artisanal parks, and industrial workspaces for small-scale manufacturers. (Applause) In collaboration with the World Bank, the Government is implementing a $360 million Uganda Support to Municipal Infrastructure Development (USMID) programme to improve infrastructure and address operational challenges in the cities and municipalities. Power infrastructure Power generation, transmission and distribution infrastructure have continued to expand. Generation capacity increased to 1,378.1 Megawatts as at March 2023 from 1,343.9 Megawatts in March 2022, an increase of 34.4 Megawatts, although that is again not enough. With the commissioning of the Karuma Hydropower Project planned for September this year, generation capacity will increase to 1,976 Megawatts. The 6-Megawatt Nyagak III Hydropower project is also due for commissioning by end of this month. In transmission, a total of 417 kilometres of transmission lines were added to the main grid during the year, bringing the total transmission line network now to 4,011 kilometres. To enable evacuation of power from the 600-Megawatt Karuma Hydropower Project the 248-kilometre Karuma-Kawanda, the 55-kilometre Karuma-Olwiyo and the 76-kilometre Karuma-Lira lines have been completed. Twekubireko mu ngalo . (Applause) Next year, 761 kilometres of transmission lines and associated power substations will be constructed to improve the stability and reliability of the networks. We will also build the capacity of the Uganda Electricity Generation and Transmission companies to manage the generation and distribution networks after the expiry of the ESKOM and Umeme concessions. Madam Speaker, next financial year, Shs 1.3 trillion has been allocated for electricity interventions. Digital transformation Turning to digital transformation, 4,717 kilometres of optic fibre have been laid across the country. Geographical coverage of broad Band services stands at 66 per cent and 25

9123 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 15 JUNE 2023 broad-band sites have been upgraded to 3G, providing services to over 700,000 Ugandans. Free Wi-Fi hotspots have been established at nine border posts namely; Lwakhakha, Mpondwe, Mutukula – (Interjection) - no, I am still very fine. Sorry, he has interrupted me. Free Wi-Fi hotspots have been established at nine border posts namely; Lwakhakha, Mpondwe, Mutukula, Busia, Vurra, Katuna and Elegu. (Applause) Next year, Wi-Fi will be deployed to 820 locations targeting schools, hospitals and markets in selected sub-regions. The Greater Kampala Metropolitan Network will be upgraded to monitor service provision over the national backbone infrastructure. (Applause) We will also digitally transform public service delivery by connecting all essential services such as schools, hospitals, tourism sites and the police to the national backbone. Madam Speaker, an allocation of Shs 192 billion has been provided to accelerate digital transformation. (Applause) Expediting strategic initiatives The development of oil and gas, the beneficiation of minerals and investment in science innovation and research are key strategic initiatives that will significantly support that socio-economic transformation. Oil and gas The final investment decision for the development of the East African Crude Oil Pipeline was taken on 2 February 2022. We are fast-tracking the construction of the East African Crude Oil Pipeline (EACOP) and the National Oil Refinery. In addition, the right- of-way for the Kabaale (Hoima) – Buloba refined products pipeline, and the financing for the refinery and associated infrastructure will be concluded. Preparatory work for the development of a petrochemical industry at the Kabaale Petro-based Industrial Park will also be expedited. I have allocated Shs 447 billion to fast-track the development of petroleum resources next financial year. Science, Innovation and Research Madam Speaker, Government is supporting several innovation and scientific research initiatives that will propel Uganda industry into the high-technology economy. These include; 1. Vaccines research and development, including therapeutics and diagnostics to enable Uganda to enter into the pathogen economy; 2. Automotive industry technology development, and 3. Chipset and robotics manufacturing. During this year, we enhanced the salaries for scientists by Shs 508 billion. We shall continue to support scientists and innovators to undertake the process of Intellectual Property registration, train and sensitise stakeholders on Intellectual Property. We have provided Shs 257 billion to support Science, Innovation and Technology development. Mineral beneficiation In order for Uganda to reap the benefits of mineral resources, Uganda’s mineral deposits will be quantified to ascertain their value before beneficiation. We shall also operationalise the recently approved mineral legislation to regulate Artisanal and Small-Scale Miners (ASMs). For the development of minerals, an allocation of Shs 54.3 billion has been provided. Maintaining security, good governance and the rule of law Security, good governance and the rule of law are the bedrock for the success of our socio- economic interventions. In order to guarantee the security of persons and property, the capacity of security and intelligence agencies will be strengthened to address any security threats and build national defence capability.

9129 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 15 JUNE 2023 The increase in debt service cost was due to external, commercial and domestic borrowing. This takes away money from the budget, which would have funded other Government priorities such as health and education. Debt sustainability To maintain debt sustainability, Government will work to: 1. Ensure effective implementation of the domestic revenue mobilisation strategy to boost the capacity to increase domestic revenue collection; 2. Reduce expenditure in areas of lower priority in order to support fiscal consolidation; 3. Access new sources of financing including climate and green financing, leveraging private equity for infrastructure investment and scaling up public-private partnerships and leveraging non-traditional innovative funding structures and identifying appropriate credit enhancement mechanisms; 4. Limit non-concessional debt to high- impact, high-return projects, such as the standard gauge railway projects, development of industrial parks, power transmission lines, water for production and tourism roads; and 5. Reduce domestic borrowing. Measures to Deepen the Debt Market My ministry has been working with the Bank of Uganda to reform the Domestic Capital Market and make it more competitive, these reforms include; Rolling out of the use of a mobile money platform for investing in Government treasury bills and bonds to broaden the investor base by enabling ordinary Ugandans to participate, increase competition and reduce the cost of borrowing. Finalise a framework for creating new and innovative Government bonds to finance the budget including infrastructure bonds for financing infrastructure projects, green bonds for financing climate-smart projects, Sukuk bonds for integrating development finance based on Islamic banking principles, among others. The draft Bills to operationalise Islamic banking in Uganda are ready for submission to Parliament. I urge Parliament to expedite their enactment to allow the private sector to access this source of funding. Resource Envelope for Financial Year 2023/2024 The resource envelope for Financial Year 2023/2024 amounts to Shs 52.7 trillion as detailed below; (i) Domestic revenue amount to Shs 29.7 trillion of which Shs 27.4 trillion will be tax revenue and Shs 2.3 trillion will be non-tax revenue; (ii) Domestic borrowing amounts to Shs 3.2 trillion; (iii) Budget support is Shs 2.8 trillion; (iv) External financing for projects amounting to Shs 8.3 trillion of which Shs 3.0 trillion (the report has Shs 3.01 trillion) is from grants and Shs 5.3 trillion is from loans; (v) Appropriation in aid collected by local governments amount to Shs 287 billion; (vi) Domestic debt refinancing will amount to Shs 8.4 trillion; and (vii) Other financing Shs 222.0 billion (the report has Shs 229 billion). Madam Speaker, total expenditure will be Shs 52.7 trillion. Wages and Salaries will amount to Shs 7.3 trillion and Non-wage Recurrent Expenditure is Shs 13.5 trillion . The Government of Uganda Development Expenditure amounts to Shs 6.11 trillion and

9132 BUDGET SPEECH, 2023 Minimum recovery, expansion, diversification of what was there, but also, a new type of economy based on science and high technology. For example: automobiles, pharmaceuticals, vaccines etc. This is in addition to some limited industrialisation for some of the products in the areas of: sugar, steel products by recycling scrap, soap manufacture, beer, beverages, cement, etc. Therefore, apart from the hi-tech, we are already moving on that low technology value addition, to our raw materials. And these are very interesting figures. This value addition, which is sort of partial industrialisation, is aimed at two missions: i. Import substitution. Mulekele awo okusaka ; do not import; make locally. But also, export promotion. When I was writing this short speech here in my house – when some people said I was in the ICU – because it allows me to do one or two things - I asked my people to crosscheck these figures because if they are true, they are very interesting. The import substitution value of these industrial products is about US$3.6 billion; ekyo nali sikimanyi ! I did not know that these small factories of emitayimbwa , soap, are saving us US$3.6 billion, which we would have to look for if we were still importing them. But apparently, they are also bringing into the country as export earnings US$1.6 billion. Awo omukazi omunyankole weyagambira nti biriyo ebeire eshagama . There was a munyankore woman who was catching locusts - the other time when we had an invasion of locusts, many people did not know that some Ugandans were not happy with me because I killed the locusts quickly. Some Ugandans, who eat locusts, said: “This man has spoilt our food; he should have allowed us to deal with these locusts.” They wanted to catch and eat them. So, in the 1930s when the locusts invaded our area, a Munyankore woman went into the papyrus swamp to catch them and she was carrying a child on her back. She was so excited about catching the locusts – those papyrus plants, sometimes, can be very sharp if they are broken. The papyrus fragments cut the throat of the child, who was on her back. The woman felt some warm liquid and thought it was sweat. When she finished catching the locusts, she realised that the warm liquid was blood and exclaimed: “Eh, I thought it was sweat – biriyo ebeire eshagama. It has turned out to be blood!” So, I did not know that the little work we were doing - I thought it was sweat, but apparently it is blood; it is something serious. We are saving you Shs 3.6 billion in import substitution and earning for you $1.6 billion from the export of not just coffee and these other things, but industrial products. I was very happy to get that figure. However, the big proportion of our economy is still a raw-materials economy. So, please, especially the NRM cadres, understand this very clearly. For this economy that we are saying has grown, as Mr Kasaija said, to $49 billion and will be $55 billion by the end of the next financial year, you should know that that kibalo – that estimation – is mainly a raw-materials economy – economy ekyali mukutunda embidde; selling the sour bananas before you process them or selling unprocessed coffee. Although I am putting on a Fine Spinner’s shirt, still, much of the cotton is sold as raw material. Maize – imagine we sell maize ow’empeke – maize grains – and import animal feeds. You can imagine! Animal feeds are mainly from maize – you sell grains of maize and import animal feeds more expensively! Our poultry farmers, those in piggery and even the cattle keepers are crying for animal feeds. Until recently, we have been importing leather from outside – you can imagine – amaliba ; skins and hides. Until recently when I built that

9087 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 24 MAY 2023 However, if prices are distorted by some non-economic factors such as the sanctions by the West on account of the war between Russia and Ukraine, for inputs in production such as fertilizers, it may be logical to look at subsidies. We are studying this. Our policy as, the Government, is to allow demand and supply forces to determine prices and incentivise production. However, on the issue of fertilizers, we shall either get a solution to stop the Western countries from interfering with our supply of fertilizers or look at subsidising on the prices for at least, the fertilizers. International trade Export revenue of goods and services was worth $6 billion for the calendar year ending 2022, of which export of goods merchandise was worth $4.3 billion. For the twelve months to February 2023, we have exported 5.7 million bags each 50 kilogrammes, of coffee worth $ 858.7 million. Fish exports were worth $166 million, beans, $132 million, sugar, $146 million, maize, $ 131 million and industrial products worth $348.9 million. These were exported mainly to the regional markets. All this has been possible because of the NRM’s efforts to grow and diversify the economy. Export of services was worth $1,776 million or $1.8 billion, of which, tourism was worth $1.047 billion, an equivalent to 59 per cent of all the services export receipts. This shows the huge untapped potential in the tourism sector that the Government is working on, in partnership with the private sector, to harness. Regional integration efforts and promoting intra-African trade are taking root. Uganda now exports more to Africa than to the rest of the world, with 86 per cent of our exports going to Africa in the last 12 months to February 2023, and 57 per cent going to East African countries. What we need to intensify, as Africa, is to build regional infrastructure to improve connectivity within the region and reduce trade transaction costs. This way, we shall be able to pull our populations out of poverty much faster because we shall attract more investments. Foreign Direct Investments (FDIs) Uganda’s investment climate remains competitive in the region and globally. Because of this, the number of investors willing to bring their money and invest here has increased. This is partly due to the stable and sound economic policies and the prevailing peace and security in the country. Foreign Direct Investment inflows to Uganda continued to recover and reached $949 million during the first six months of this Financial Year 2022/2023. This is in part due to increased financing to the oil and gas as well as the mineral development sectors. Increase in Household Incomes Although the country has been faced with economic shocks, household businesses have responded positively to Government investments, especially in infrastructure and the various wealth creation initiatives. As a result, 60 per cent of households increased their incomes in the year ending December 2022, compared to 43 per cent whose incomes increased in the same period a year ago. This means that the Government’s effort to create wealth at the household level is taking root. This will be further enhanced by the Parish Development Model and the Emyooga Government initiatives. As prices stabilised towards the end of 2022, and incomes increased, access and the affordability of essential goods and food products improved. The prices of fuel, sugar, maize flour, beans, cooking oil and eggs have all reduced since their peak between August and December 2022.

9088 ADDRESS ON THE STATE OF THE NATION When the NRM took over in 1986, the economy depended on a few cash crops, namely, coffee, cotton, tea and tobacco. Since then, the economy has become bigger and more diversified. Some of the agricultural products, which were only for consumption at home such as maize, beans, matooke (bananas), fish, milk, etcetera, have become commercial, contributing to household incomes. Other crops that have joined the traditional cash crops include sunflower, from which we now make edible oil, palm oil trees, vanilla, avocado, oranges and mangoes, which are raw materials for the agro-processing factories. We now produce enough sugar - in fact, now, we have got surplus which is being exported to our neighbours – steel products, cement, other building materials such as tiles at Kapeeka Industrial Park, mineral extraction and beneficiation, etcetera. We shall soon produce oil and gas and the infrastructure development to enable - this is currently under construction, including the East African Crude Oil Pipeline, power and water infrastructure, and Kabale International Airport. Uganda has a vibrant economy and workforce that is transforming our economy into a digital one. There are many businesses and financial transactions taking place within the country, using the Internet and other online avenues. This is not only improving efficiency but also creating many jobs for the youth. The Fiscal Performance Domestic revenue, in Financial Year 2022/2023, is estimated at Shs 25.55 trillion. This is about 13.7 per cent of GDP. Next Financial Year 2023/2024, we plan to collect Shs 29.67 trillion as domestic revenue. Through our strategy to raise revenue, the Government is planning to raise at least 18 per cent of GDP in the next five years. When we achieve this target, we shall be able to reduce our reliance on borrowing to finance a larger share of our budget. We must avoid this problem of not being able to pay our debts, by increasing what we collect from taxes and other sources of domestic revenue such as the loyalties from our mineral development. Some countries are paying more than 50 per cent of their collection, in taxes, to service debts. We should avoid falling into this debt trap. Therefore, in addition to collecting more revenue domestically, we should also not spend what we do not have. To achieve this, the Government decided to rationalise Government departments to reduce duplication and wastage of taxpayers’ money. The Ministry of Public Service is finalising the implementation plan for this decision. Industrialisation Our industrialisation drive is bearing fruit with many factories being set up. We have got eight Government-owned industrial parks that are currently operational. These include: 1. Kampala Industrial Park and the Business Park at Namanve with 125 companies operational; 144 companies under the construction stage, and 106 companies at the planning stage, giving a total of 375 factories or companies; 2. Luzira Industrial Park with 11 companies operational; 3. Bweyogerere Industrial Park with eight companies; 4. Soroti Industrial Park with two companies operational and five companies at the construction stage; 5. Tian Shan Mobile Park with 16 companies that are operational while four are under construction stage; 6. Jinja Industrial and Business Park with one company for assembling electric buses is operational;

9089 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 24 MAY 2023 7. Mbarara Industrial Park for small-scale enterprises for which 35 workplaces are occupied; and, 8. Kasese Industrial Park where one company is operational and five are at still construction stage. Both Karamoja and Koboko industrial Parks will soon start. In addition, we have three industrial parks, which are operated under a Public-Private Partnership (PPP) arrangement. These include Liao Shen Kapeeka with 17 factories, MMP Industrial Park, Buikwe, with six companies operational and Tian Tang in Mukono with four companies. The total capital investment within the industrial parks so far, is $2.93 billion and 98,263 direct jobs have been created with many more indirect jobs. In total, 226 factories are operating within the industrial parks while 303 are either under construction or at the planning stage. The development of industrial parks is one of the vehicles for socio-economic transformation with the projected creation of 2.5 million jobs in the next five years. The factories in the industrial parks do not include the standalone factories owned and operated by many different investors. These are factories that belong to Mukwano Group of Companies, Mulwana Group and so on. These are a total of 354 factories and employing an additional 100,000 people. The total number of factories in Uganda is 4,008, employing a total number of 150,000 people. The Parish Development Model We are committed to creating wealth and jobs by moving households from the non-money economy to the money economy. To achieve this goal, the Government launched the Parish Development Model to accelerate socio- economic transformation. Using this approach, 39 per cent of households, which are currently in the non-money economy - the majority of whom are in subsistence agriculture - will move into the money economy. The Parish Development Model will increase incomes, improve quality of life and eradicate poverty at household level through the modernisation of agriculture, industrialisation, improved service delivery and using modern communication technologies. Through the Parish Development Model, agriculture will be transformed from subsistence to commercial. This approach will organise and deliver public and private sector interventions for wealth creation, and employment generation using the parish as the economic unit for planning, budgeting and service delivery. Therefore, the 10,594 parishes in the country will be the growth and service delivery units in the Parish Development Model. Government has committed Shs 1,059 billion this financial year for its rollout countrywide. So far, parishes which established SACCOs have received Shs 50 million each, benefitting 906 SACCOs and more than 21,000 individual beneficiaries. Government will deepen the implementation of the Parish Development Model beyond the financial inclusion pillar by maintaining the disbursement of Shs 100 million to every parish next financial year and in the subsequent years. When I visited some parts of the country, I was told that some of the Parish Development Model money has given to people who were not eligible. This includes politicians and public servants. I was also informed about the delays in accessing the funds released by the Ministry of Finance, Planning and Economic Development to the target beneficiaries. In some cases, a few elite people come together and form SACCOs, and take all the funds released for the entire parish. The State House Anti-Corruption Unit has arrested a number of

9096 ADDRESS ON THE STATE OF THE NATION The rehabilitation works of Mityana - Mubende (86 kilometres); 14 kilometres town roads in Mubende; Olwiyo-Pakwach (62 kilometres); Alwii - Nebbi (33 kilometres) are ongoing. The Government is expediting the construction of the Standard Gauge Railway, starting next Financial Year 2023/2024, starting with Malaba to Kampala. I welcome the decision of His Excellency, President William Ruto of Kenya, agreeing to extend the Standard Gauge Railway from Naivasha to Malaba because that was a problem. In the meantime, the rehabilitation of the Tororo to Gulu Metre Gauge Railway and Kampala Metre Gauge Railway are underway. As regards road transport, priority will be given to the maintenance of existing road networks, especially in the urban areas, continued upgrade of selected strategic roads from gravel to bituminous surface, maintenance of national districts and community roads by facilitating each district in the country, with a minimum of Shs 1 billion to upgrade and compact the dry weather marram roads next financial year. Infrastructure priorities Government has over the years invested heavily in infrastructure. This has helped to narrow the huge infrastructure gap we had in the 1990s. However, there are still critical gaps that Government will continue to prioritise in order to reduce the cost of doing business such as lowering the electricity price. You know, these people use their mysterious language; power tariffs and all that. Mwe ba wanainchi, ekyo mukitegele bulungi, bano byeboogela ebya “power tariffs”. They simply mean electricity prices for manufacturers and other businesses. The critical infrastructure include the railway, upgrading of airports, including completion of Kabaale International Airport, which is at 91 per cent completion and Entebbe International Airport, which is at 71 per cent completion; development of new ports on our lakes; and completing the heavy investment in the energy infrastructure, for example, Karuma Dam and associated transmission lines. We also need to build new airports near the tourism destinations such as Kidepo, Bwindi, Kasese, among others. Tourists, who are the rich people, do not have time to come, land at Entebbe International Airport and drive for 700 kilometres to Kidepo. No, they do not have time. We need to build airports for the rich foreigners to land near the national park, see the animals and go away. Those airports, of course, also help with security. Like now with night operations in Karamoja, we fly very far; from Nakasongola and all those places. It is better to have a good airport which can operate day and night in those areas. Government will prioritise infrastructure that supports industrialisation, production of oil and gas, and promote tourism. These include industrial parks, electricity power substations, extending and upgrading electricity transmission lines, water for industrial use and ICT infrastructure. Energy The total electricity generation capacity is now 1,346.6 megawatts. This is from 60 megawatts in 1986. This will increase to 1,800 megawatts once Karuma is commissioned this year. This means, therefore, that the construction of the transmission lines to evacuate this power must be completed without further delays. These lines include Karuma-Kawanda (400 KV), Karuma-Olwiyo (400 KV), Karuma-Lira (132 KV) and Kole-Gulu-Nebbi-Arua. They did not include the strength here; I think it is 132 KV. The demand for electricity is increasing by 15 per cent per year, although these figures of finance are kasoobo . You heard my figures on the milk; 193 per cent. Bano bali ku 15 per cent. Anyway, we are talking with the Ministry of Finance, Planning and Economic Development and I think we shall eventually agree. They are beginning to wake up because they are the ones who wrote this. Mukawulire kano . Bebawaandika bino ; Katonda yebazibwe .

9097 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 24 MAY 2023 (Laughter) They are the ones who wrote this; I am just reading. This means that even with the 1,800 megawatts installed electricity generation capacity by the end of this year, there will not be enough power for consumption and manufacturing in the next five years if we do not continue to invest in generation. Katonda yebazibwe . When you hear the finance ministry talking like that, then you know that Katonda yennyigiddemu. Ab’Afirika baamanyira obwaavu; tebaaagala abatawanya okuva mu bwaavu . Given the many manufacturing factories that are being established in Uganda, we shall need to both increase and diversify our energy sources, including nuclear energy, to supplement our other sources such as hydro, solar and thermal power. Nuclear energy is expected to add another 2,000 megawatts to the national grid by 2036. However, by 2040, we must ensure the generation of 52,000 megawatts from all sources. I am glad they have now put it here because I had a long discussion with these wonderful people. You know, when our brothers of the African National Congress in South Africa came in, the whites whom those people were fighting were generating 36,000 megawatts of electricity. In 1994, South Africa was already generating 36,000 megawatts. Now here, my people are talking about 1,800 megawatts and they are talking about it as a big thing. They are very happy and not embarrassed. I think South Africa now is generating 42,000 megawatts or something like that but there is a big power shortage there. President Ramaphosa told me. You can imagine 42,000 megawatts but our brothers are crying in South Africa and here, my people are talking of 1,800 megawatts as a big thing. They do not even feel embarrassed. They go to international conferences with PowerPoints showing how wonderful they are. I feel embarrassed. Please, do not show these figures; keep quiet. (Laughter) However, they have now committed themselves because the problem is not money; the problem is vision. If we have got a vision, we shall get the money, even from our own sources. But if you do not see, what can people do? They are now talking of 52,000 megawatts by 2024 - I think that is a bit too far but wakiri . In the immediate future, the Government shall prioritise investment in: (i) Rural electrification in the remaining subcounties; (ii) Electricity connections for upcoming industrial zones and factories; (iii) Construction of additional power substations; (iv) Strengthening the capacity of the Uganda Electricity Generation Company and so on. Above, in this speech - these are my own words now. Most of the others have been the ones of finance people and those other groups like energy and agriculture. As a loyal delegate, I have represented them. I have told you exactly what they wrote, but this is now mine; bino byange. Above, in this speech, I have said our economy will have a GDP size of $55.2 billion by the end of the Financial Year 2023/2024. This is assuming a rate of growth of 6 per cent per annum. This is all while our economy is still largely raw material based. This is the problem I have with the people in finance and all those wonderful people in agriculture and others. The 6 per cent rate of growth - on this one, they are assuming we remain a raw material-producing country, which I do not accept. This is assuming a rate of growth of 6 per cent per annum. This is all while our economy is still largely raw materials based. Coffee is a good example. Ninety-nine per cent of our coffee is exported as unprocessed coffee; a raw material for cleverer people - ffe abatalegela

9102 ADDRESS ON THE STATE OF THE NATION 6. Nabumali High School, Mbale; and 7. Namasagali College, Kamuli, among others. In addition, Government is constructing and equipping secondary schools with laboratories and completing the construction and upgrading of technical vocational institutions in Bushenyi, Luweero, Lira, Mbale, Nyamitanga, Rwetanga, Kaberamaido, Butaleja, Ssesse, Kitgum and Kaliro, among others. The construction of 115 seed secondary schools in the subcounties, which do not have these schools at the moment, will continue in the next financial year. To improve school learning and accountability in Government-supported schools, the following will be undertaken starting next financial year: (a) Strengthen the link between education and socio-economic transformation by promotion of Science, Technology En - gineering and Mathematics in education, research and incubation; (b) Enhancing the technical capacity and skills to support industrial growth especially manufacturing; (c) Electronic tracking of enrolment, dropout and retention, and identifying learners, teachers and institutions using ICT capabilities; (d) Improving the overall staffing levels in the schools and; (e) Development of a complete national vocational qualification framework. With our oil money, we shall be able to complete our targets of a Government primary school per parish and a Government secondary school per subcounty. The railway, electricity, technical and science education as well as some national roads, will be the elements our oil money will deal with. I intend to meet with the Petroleum Authority of Uganda and the oil companies to harmonise so that we do not miss the target of 2025 as the first oil date. (Applause) I do not want this Petroleum Authority of Uganda to delay our programme with petty things; local content. Let us start. Health Over the last three years, since the outbreak of COVID-19, the Government has strengthened health systems. This included equipping regional and national referral hospitals and 225 health centres II have been renovated and upgraded to health centres III. In addition, we have strengthened the capacity of the country in vaccine development. For the Government to be able to sustainably improve health services, emphasis will be placed on transforming the health care from predominantly curative to preventive, through: (a) Timely supplies of drugs to address stock- outs as well as provision of relevant medical equipment; (b) Prevention and control of communicable diseases through immunisation; (c) Operationalising Mulago Super Specialised Hospital and expediting the construction of the Lubowa Specialised Hospital, all existing health centre IVs and health centre IIIs; (d) Strengthening the supervision and accountability role of the regional technical supervisory structures; (e) Emphasising, through radio programmes, the importance of nutrition and hygiene, among others, and; (f) Malaria prevention through killing the mosquitoes and the use of treated bed nets. Strengthening security and good governance Uganda’s borders remain secure, save for the spill-over effects occasioned by activities of negative armed groups in Eastern Congo and

9106 ADDRESS ON THE STATE OF THE NATION (iii) Acquisition of right of way and starting the construction of the Standard Gauge Railway as well as finalising the rehabilitation of the Metre-Gauge Railway; (iv) Investing in small-scale solar-powered irrigation systems to address climate change and ensure food security and eliminate the erraticness in agricultural production; (v) Constructing transmission lines and power sub-stations; (vi) Maintenance of both tarmac and murram roads; (vii) Development of industrial parks to ease manufacturing; (viii) Support to medical schools and science- based research and development; (ix) Expedite the development of the infrastructure for oil and gas production; (x) Capitalisation of the Uganda Development Bank (UDB) and Uganda Development Cooperation (UDC); and (xi) Support to Information, Communication and Technology (ICT) development. The Anti-Homosexuality Law Before I conclude and talk about the planned legislative agenda for the coming Session of Parliament, I cannot avoid commenting on the noise about the anti-homosexuality law that you enacted and I signed recently. My stand on homosexuality has been repeatedly laid out to all and sundry. It starts with a few questions: Why does somebody become a homosexual? Is it on account of genetic, hormonal or psychological reasons? Discussions with our doctors and the other African doctors who had a conference with African Members of Parliament from 22 countries, unequivocally, led us to conclude, that homosexuality, is a result of psychological disorientation at some point in one’s life - not genetic and not hormonal, as some of us initially thought. This conclusion that homosexuality is a psychological disorientation, gives us a way forward, logically and reasonably without bias. If somebody is a victim of psychological disorientation, do you criminalise him or her on account of that? Is it logical or fair to do so? The answer is “No”. Instead, such a person needs assistance to, if possible, overcome his psychological disorientation. I am glad the MPs agreed with me and clarified this point in the law. Therefore, those who say that homosexuals will be arrested if they go for medical care etcetera are wrong. The law now says that a homosexual will not be criminalised for merely being so if he or she keeps the being to oneself. What, then, does the law fight? It fights this homosexual when he or she goes from merely being and starts recruiting other people who are not psychologically disoriented like him or her, to be like him or by misinforming or bribing them. There, he becomes a criminal and if convicted, goes to prison for a period not exceeding 20 years. If he goes further and rapes a person, a child, an indigent - indigent means a weak person - he commits a capital offence and he faces a maximum sentence of death. This is the law I signed. These are the three substantive points. I think there is something missing here - Oh, these are the three substantive points. Being a homosexual is your personal problem; merely being a homosexual and you find disoriented people that you do not like the ones you should like and like the ones you should not like. Being a homosexual is your personal problem. Promoting it is criminal and qualifies you for prison. Raping qualifies you for a possible death sentence. Therefore, when you are arguing with these people, go for the substance. Do not be diverted to these other -

Mr Speaker, since we liberalised our economy in 1993, the economy has grown big. Our GDP has grown from $5.6 billion to, now, $45 billion. Our industrial base has also grown from a mere 81 factories in 1986 to, now, 8,640 factories. As we know, our population continues to grow. We are now at 45 million and we will be 100 million in 2050. As competition grows, there are many things that happen in these economic activities, including bad competitive practices. So, this Bill is an ethical standpoint, to check on those bad practices in our economy and also to try and correct the defects that we have in our economic activities. There are just a few sectors like banking and energy that have competition provisions in the law, to regulate them. Such provisions are restricted to those sectors and not comprehensive enough for the purposes of competition law. So, the Bill seeks to correct these behaviour in the market, but most importantly, to facilitate competition so that small and big companies can smoothly compete and grow our economy. Mr Speaker, I am informed that the committee looked at this Bill and is ready to inform the House so that we can take appropriate decisions. I beg to move.

Honourable colleagues, both the majority and minority report agreed upon this issue. They only dropped Amarog; it even has a bad name “Amarog” (Laughter) . Honourable minister, next time, be cautious of the names of companies you bring here otherwise, some bring you a bad omen. Clerk, extract the resolutions for these borrowing agencies and ensure the minister receives them. Next item. MOTION FOR A RESOLUTION OF PARLIAMENT TO BORROW UP TO SPECIAL DRAWING RIGHTS 68.6 MILLION (EQUIVALENT TO $96 MILLION) AND RECEIVES A GRANT OF SPECIAL DRAWING RIGHTS (SDR) OF 74.3 MILLION (EQUIVALENT TO $104 MILLION) FROM THE INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) TO FINANCE THE INVESTMENT FOR INDUSTRIAL TRANSFORMATION AND EMPLOYMENT (INVITE) PROJECT

9073 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 24 MAY 2023 million ($96 million) and receive a grant of Special Drawing Rights 74.3 million (an equivalent of $104 million) from the World Bank to finance the Investment for Industrial Transformation and Employment Project (INVITE) Project.

9074 THE COMPETITION BILL, 2022 the International Development Association of the World Bank to finance the Investment for Industrial Transformation and Employment (INVITE) Project. Mr Speaker on 5 April 2023, the Ministry of Finance, Planning and Economic Development presented a loan request for the Government to borrow up to about $96 million and receive a grant and it was referred to the Committee on National Economy. The committee considered and scrutinised the request and now reports. Mr Speaker, in the consideration and scrutiny of the loan, the Committee on National Economy held several meetings with the finance ministry, Private Sector Foundation, Bank of Uganda and other stakeholders. The committee also reviewed a number of documents, including the loan request, the brief from the Ministry of Finance, Planning and Economic Development, the draft financing agreement and the project management implementation manual. Background Investment for Industrial Transformation and Employment (INVITE) is a collaborative programme between the Government of Uganda, the private sector and development partners (World Bank Group, SIDA, UK Government and Ministry of Foreign Affairs of the Netherlands). INVITE aims to create private-sector manufacturing jobs and increase incomes across Uganda. INVITE will achieve this by supporting manufacturing and exporting firms. INVITE will operate a range of products through the Private Sector Foundation Uganda and the Bank of Uganda INVITE Trust. The programme offers a variety of products to support private sector manufacturing firms across the country. Mr Speaker, Uganda is one of the countries that is still developing its export firms’ capacities. Exporting firms of manufactured and semi- manufactured products planning to increase exports to high-value markets or identify new high-value markets will receive this grant. Accompanied with the loan is a grant for Investment in Refugee and Host District Supply Chain and this will lead investors to manufacture or export manufactured and semi-manufactured supply chains that will be supported by this grant so that the beneficial refugees and host communities will definitely be improved. iii) Partial credit guarantee for the business loans. The product will support businesses by taking on some of the risks in their loans. This will allow businesses to access more favourable loan terms. Mr Speaker, in Uganda, most entrepreneurs are grappling with short-term loans. This loan will offer patient capital for most of our entrepreneurs and the private sector will be in a position to grow. iv) Long-term flexibility of this loan in Uganda Shillings. The product will provide long-tenure loans to both private businesses and public organisations. This loan will be targeted to support long-term improvement in businesses or projects that will increase efficiency. v) Cost-sharing of the loan extension. This product supports firms, which restructured a loan under the Bank of Uganda COVID-19 relief scheme. The cost of that structuring will be shared by the Invite Trust. vi) Loan interest discount. This product supports microfinance institutions by providing a line of credit. Those institutions will then be able to issue discounted loans to businesses. vii) Accelerated invoice payments. This product will allow businesses to sell their invoices from large buyers to the Invite Trust at a small discount and in turn [Mr Ikojo] RESOLUTION TO BORROW

9075 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 24 MAY 2023 be paid rapidly for goods and services delivered. The service will be cheaper than the equivalent commercial offerings. Mr Speaker, I want straight away to skip to the terms of the loan. The International Development Association of the World Bank Group will provide credit facilities to enable the Government of Uganda to implement the investment for industrial transformation and employment projects under the terms indicated in Table 5. The amount of the loan is $96 million (SDR 68.6 million). The maturity period is 38 years, the grace period is six years; the service charge is 0.75 per cent per annum on the withdrawn credit balance and a commitment fee of 5 per cent per annum on the unwithdrawn financing balance. We have always encouraged that Government should always concentrate on considering concessional loans. Therefore, this loan is highly concessional. The conditionality of the loan The nominal value of the loan is SDR 68.6 million ($96 million.) The maturity period is 38 years, grace period is six years and the present value of the loan is $46.18 million discounted at a rate of 5 per cent per annum. Therefore, the total debt service of the loan is $111.66 million. The grant element is 71 per cent of the loan amount. The present value of the loan as indicated above is lower than the nominal value of the loan contracted. This implies that the country’s total future payment for this loan will be less than the proposed amount to be borrowed in the present terms. Total repayment of the loan will amount to $111.6 million. The IDA loan is highly concessional since the grant element, 71 per cent is larger than the threshold of 35 per cent recommended by IMF/ World Bank. The concessionality of this loan is further influenced by its long maturity period and the grant being extended through the relief-hosting window. The budgetary implication: The investment for industrial transformation and employment project has been earmarked for implementation under NDP III. The project is part of the public investment project with a Code 1706. The project is fully funded by the loan and grants from the World Bank with no Government of Uganda funding indicated anywhere. The project is part of the proposed budget for the Ministry of Finance, Planning and Economic Development for the Financial Year 2023/2024 and the medium-term framework. There is an allocation of Shs 202 billion under the external funding for the Financial Year 2023/2024 under project number 1706: Investment for industrial transformation and employment. Similarly, the current budget of 2022/2023 has an allocation of Shs 18.44 billion under the project under external funding. Mr Speaker, I want to draw Members’ attention to the observations and recommendations of the committee. The committee observed that: 1. The project design reflects short-term measures to address immediate liquidity challenges, that is, to keep the lights on. Limited firm closures or bankruptcies, particularly in cases where more productive firms may be at a greater risk of closure and present a widespread layoff in the manufacturing and exporting sector. 2. The project design is also anchored on supporting growth-oriented enterprises –

(3) The project design contributes towards addressing financial bottlenecks that arose as a result of COVID-19 - that is the SMEs high reliance on bank funding or commercial lending, Deterioration of credit conditions from banks and non-bank financial institutions arising from an overall curtailment in financial intermediation and avoidance of the liquidation as a tool of debt collection by other firms. The committee recommends that the Bank of Uganda should ensure that the lines of credit are applied only to those Tier 3 and 4 institutions, which have been assessed and are deemed qualified according to the set of key indicators, including a measure of the quality of the loan portfolio, capital adequacy and governance and are compliant with the established prudential norms. The sizing of the lines of credit should be a moderate function fraction of the overall demand in the market segment, thus reducing the probability of poor disbursement and the need for large cancellations. The committee recommends that the Ministry of Finance, Planning and Economic Development, Bank of Uganda and the Private Sector Foundation should ensure that the above loan effectiveness conditions are timely fulfilled in order to trigger the timely effectiveness and disbursement of the credit for the project objectives to be met as planned. The committee also recommends the following; • That Bank of Uganda should ensure that a situation whereby well-performing PFIS are punished (for charging a fee that is too high) and underperforming banks are subsidised (by charging a fee that is too low) is avoided. Role of invite trust in the project institutional arrangement and its future sustainability The committee recommends that the Government should consider establishing a more sustainable and well-coordinated policy, legal and institutional framework for extending affordable development finance for the promotion, financing and development of the Micro, Small and Medium Enterprises(MSME) sector in Uganda in order to strengthen it and make it more vibrant and competitive. On public debt portfolio analysis, the committee recommends the following; • Given the existing global uncertainties (Lower Global Growth, Persistent high inflation in advanced economies, tight global financial conditions, slow growth in domestic revenue and climate change disruptions), the Ministry of Finance, Planning and Economic Development should prudently project and manage the funding mix as well as review its priorities to avoid escalation of debt beyond a sustainable level. • The Ministry of Finance, Planning and Economic Development should fast- track implementation of strategies to enhance domestic revenue generation for the country or reduce or rationalise government expenditure. • Acquisition of additional debt should be targeted towards those sectors that trigger export growth and contribute to domestic revenue mobilisation. Mr Speaker, in conclusion, the committee therefore recommends that the request by Government to borrow up to Special Drawing Rights SDR 68.6 million (equivalent to $ 96 million) and receive a Grant of Special Drawing Rights SDR 74.3 million (equivalent to $ 104 million) from the International Development Association of the World Bank to finance the Investment for Industrial Transformation and Employment Project be approved subject to the recommendations herein. I beg to move.

Thank you, Mr Speaker. I support the committee’s recommendations. However, I would like to make an observation that as we get this loan, most of the industrial hubs should be empowered with resources regionally and equitably to ensure that the small-scale firms and factories take off. I have discovered that some of these loans have an element of refugees. Honourable minister, how I wish we had independent loans or grants specifically for refugees. I remember we had very many schools in areas with refugees and areas that did have refugees were deprived of. Why can’t we get clear grants specifically for refugees? If we combine these grants, it will create confusion. We have the United Nations High Commissioner for Refugees that is in charge of refugees and it is doing a lot. We are providing for the refugees, but at the same time leaving our own people without any help. Lastly, on the issue of businesses – (Hon. Basalirwa rose_)

I now put the question on a motion for the resolution of Parliament to authorise the Government to borrow up a Special Drawing Rights SDR 68.6 million (equivalent $ 96 million) and receive a grant of Special Drawing Rights SDR 74.3 million (equivalent to $ 104 million) from the International Development Association to Finance the Investment for Industrial Transformation and Employment (INVITE) Project. (Question put and agreed to.)

Thank you, Mr Speaker. I would like to thank the minister for the statement. I raised a matter yesterday with respect to the DIT curriculum that was introduced alongside the lower secondary school curriculum, where the Senior Three students were supposed to sit for exams this current year. Mr Speaker, after the Government received registration fees from the students, it halted the programme. I requested the minister to come up with a statement on the fate of the DIT exams and whether they are planning to give the students two sets of exams next year with respect to both the new curriculum and the Directorate of Industrial Training Curriculum. Thank you, Mr Speaker.

8901 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 24 MAY 2023 law, specifically in sections 65 and 66. This has, in effect, created a gap in handling matters of concluding employment relationships between employers and employees. The gap has largely been covered by case law and so the Bill intends to clear the confusion by providing grounds for dismissal, under section 65A, and to harmonise with the established court rulings on the matter. 3. Regulating the powers of labour officers There is confusion with the limit to the powers of the labour officers owing to the fact that the power to adjudicate is a preserve of judicial officers according to established case law. Therefore, the Bill intends to clearly stipulate the extent of powers and qualifications of the labour officers when handling labour disputes. Mr Speaker, the case laws we considered on the subject matter is the case law in the Court of Appeal at Old Kampala, arising from the Industrial Court of Uganda Labour Dispute. The quorum had Justice Kenneth Kakuru, Justice Stephen Musota and Justice Christopher Izama Madrama, Eng. John Eric Mugyenzi, the appellant versus Uganda Electricity Generation Company Limited, who is the respondent. We referred to the judgement of that court and I beg to lay the judgement on the Table. 4. Rights of breastfeeding employees The Bill is cognisant of the new trends in the working conditions of employees and the need for them to support their babies that are breastfeeding. It is in this regard that the Bill introduces a proposal in section 57 to protect rights of the breastfeeding employees. 5. Protection from sexual harassment at the workplace The Bill seeks to strengthen the safety of employees at the workplace by strengthening the provisions on sexual harassment, under section 7 in the current law. It suffices that in certain instances, the Bill proposes amendments to similar issues, for instance, rights of breastfeeding female employees, protection from sexual harassment at the workplace, powers of labour officers and migrant workers. In addition, the Employment (Amendment) (No.2) Bill, 2022 introduces other details like the distinction between dismissal and termination from employment. 6. Provide for severance allowances The Bill provides severance allowances and allows workers to receive an allowance at the end of the employment relationship with the employer. Methodology Meetings and written submissions; the committee met with a number of individuals and agencies. I beg that Members peruse through the list up to number 25. We may not have exhausted them because we continued to hear and read notices from different people and agencies. We did a documentary review of: i. The Constitution of the Republic of Uganda; ii. The Employment Act, 2006; iii. The International Labour Convention (C190). I thank Cabinet for ratifying C190; iv. The Labour Disputes Act, 2006; v. The Workers’ Compensation Act, Cap. 225; vi. Persons with Disabilities Act, 2020; vii. The Children’s Act, Cap. 59; viii. The Employment and Labour Relations Act, Cap. 366 of Tanzania; ix. The Contracts Act, 2010; x. The Employment Act 2007, of Kenya;

Thank you, Mr Speaker. I thank the committee for the report. However, I have three issues to raise; First, the report will not be meaningful to employees, if the aspect of minimum wage is not tackled in this country. Our employees are weighted below the international labour standards of minimum wage. I urge the honourable minister in charge of labour and all of us here to take the issue of minimum wage seriously. Secondly, the freedom of collective bargaining; most of our investors do not allow their employees to collectively bargain for salary, and yet their working conditions are very bad. The third issue is on the committee’s emphasis on recruitment companies. Where is the Government, as the supreme entity, in this? There are nations that are negotiating to export labour. In 2011, I was visiting Israel and a colleague told me that Israel had negotiated to import workers from Ethiopia. In 2021, I visited Canada and the TV channel was awash with news on shortage of labour, especially industrial labourers. What is our country doing to train people who are exported, when they have basic skills – (Member timed out.)

Mr Chairperson, under the current Employment Act, there is an existing regulation of 2011. Regulation 39 provides for contracts for casual employees. The principle is that we provide for a casual employee to be given a contract after four months. When you have worked continuously for four months, you are entitled to a written contract, as a casual employee. The problem we have been having is that in the context of most complaints that are going to Industrial Court, the employers are not following the regulation. So, it is up to this House because we have already tested this regulation at the ministry and Industrial Court. The ruling, in Industrial Court, is always that the regulation is inferior. The principle of continuously giving someone a contract after the lapse of four months is not embedded in the Act. So, that is the problem we have had. However, if it is because of the economy, then, we will go and see what to do.

Thank you, Mr Chairperson. I support the protection of casual labourers. We can qualify – as much as there are isolated cases of Darling and other companies are coming in - there are many factories which employ casual labourers consecutively from day one up to the last day in the year. Even when they work for such companies for five years and end their causal employment, they do not get any benefits; they are not protected at all. The majority of Ugandans are in this category. We need to look at the side of industries but we must strike a balance and also protect Ugandans who are employed in this category. (Applause) I am a legal practitioner; I get to the point when I am faced with a casual labourer who I think should be protected, but the law is silent. I try to rely on the regulations, but you have heard the industrial court say that they cannot do much. My proposal is that we adopt the insertion with the qualification -

Mr Chairperson, I have not confronted a situation where a court has refused to follow a regulation which is sanctioned by Parliament; it is subsidiary legislation. If there are gaps in those regulations, we can address them. So, I would not say that the regulations are weak. I am hearing it now, but we can go back to the Industrial Court and address this. (Member rose_)

Mr Chairperson, we have an amendment on Section 39 of the Principal Act to delete clause 6. Justification • The deletion seeks to retain the provision in the principal Act on repatriation, which stipulates that repatriation shall be to the place of engagement of the employee contrary to the position in the mother Bill, which limits repatriation to the place of recruitment of the employee. • To ensure decent settlement and better protection of an employee in case of repatriation. • In the case of G4S Secure Solutions Uganda Limited v. 201 former employees of G4S Security Services Limited (Labour Dispute Appeal No.022 of 2017), the Industrial Court clarified that repatriation means transporting the employee from the workplace to his or her home, that is, to enable the employee return home after the termination of his employment.

8690 BUDGETARY PROPOSALS & ESTIMATES FOR FISCAL YEAR 2023/2024 the money economy to accelerate the rapid expansion of the economy. We prepared this budget in a highly constrained environment and the only priorities that fit within the available resources will be financed as appropriated by Parliament. The resources available for distribution to the Government entities fulfilled the following criteria: 1. Higher multiplier effect and attainment of the NDP III targets; 2. The recent presidential directives; 3. Increase in Government revenue; 4. Economic recovery and increasing household income; 5. Operationalisation of the Parish Development Model; 6. Improvement of the Government’s efficiency; The budget priorities for Financial Year 2023/2024 include the following: 1. Peace and security under the security and governance programme; 2. Roads: Maintenance of both tarmac and murram roads under integrated transport infrastructure services programme; 3. Electricity: Construction of power substations and transmission lines under sustainable energy development programme; 4. Railways: Rehabilitation of the Metre- Gauge Railway and the construction of the Standard Gauge Railway. This will connect with the improvements in the water transport and aviation industry. All of these will be undertaken under integrated transport infrastructure services programme. 5. Irrigation, particularly the small-scale solar-powered irrigation under the agro- industrialisation; 6. Industrial parks development: Building of infrastructure and connecting them to electricity and other infrastructure under the manufacturing programme; 7. Support science-based research and development; 8. Funding the Parish Development Model and Emyooga under the Private Sector Development Programme; 9. Oil and gas development; 10. Enhancing support to Uganda Development Bank and Uganda Development Corporation; 11. Support to Information and Communication Technology and tourism development. The economic growth this financial year is projected at 5.5 per cent - from 4.7 per cent in Financial Year 2021/2022, in the spirit of the impact of external shocks on the economy and the fiscal and monetary policy measures taken to contain inflation. Financial Year 2023/2024 The economic growth is projected to reach six per cent and an average of seven per cent, over the medium-term on account of increased oil and gas activities, production from the implementation of the Parish Development Model, regional trade and the positive impact of the continued recovery in regional and global economies. I wish to assure this august House that the economy is on a progressive trajectory to achieve an average of at least seven per cent in the period 2022/2023 to 2024/2025. Therefore, by the end of Financial Year 2023/2024, Uganda’s GDP is projected to grow up to Shs 206.54 trillion, equivalent to $54.99 billion, translating to $154.27 billion in purchasing power parity terms. This, in turn, is projected to grow our GDP per capita to $1,182 up from $1,093 in Financial Year 2022/2023.

8693 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 18 MAY 2023 Methodology As usual, the methodology involved interactions with a number of stakeholders relevant to the process. The committee interacted with the Equal Opportunities Commission, Presidential Advisory Committee on Export and Industrial Development, chairpersons of sectoral committees of Parliament and the relevant ministries. The committee also made reference to a number of documents as laid out on page 4 – NDP III, budget framework paper, annual estimates – it is a long list and runs up to number 23. In the interest of time, honourable colleagues can read the list of the relevant documents. Madam Speaker, I now go to part A. When we receive this, we have to carry out a number of tests, which are compliant with the way the estimates have been prepared. The first compliance test is the submission requirements. Section 33 of the Public Finance Management Act has a number of parameters that we must comply with when processing this. Therefore, most of this compliance is by the Minister of Finance or the Government. The committee has assessed these compliance requirements - like the date of submission and the date of laying the budget estimates. The committee perused and found that a number of compliance requirements under Article 13 were complied with and found out that the Government, as per these submission requirements, had complied highly. Another compliance test we had to carry out is the consistency of the estimates to the Charter of Fiscal Responsibility. Madam Speaker, on 27 January 2022, Parliament approved the second Charter of Fiscal Responsibility - which is a contract between the Government and the people of Uganda. The charter, therefore, has to be met in full. The first objective of a charter is the control and the target of public debt. We would like to report that the public debt, in nominal terms, is reduced to below 50 per cent of the GDP by Financial Year 2025/2026 as shown in the table; that is the target. Therefore, the Government is supposed to move towards achieving that by 2025/2026; the measure is flowing as per Part B. The indications, as per the stringent measures put in place by the Government, are that the debt shall be moving strategically until we achieve that, which is an ideal position. Fiscal balance is indicated as objective two. And objective three is about the petroleum fund transfers to the budget to contribute to our petroleum revenue investment reserve. The committee also analysed the consistency, as you see in Table 2, and found out that the annual budget estimates are not consistent with the Charter of Fiscal Responsibility in regards to the ratio of total domestic debt interest payments to total revenues, excluding grants that are projected at 16.8 per cent in 2023/2024, which is against the charter. The major reason for the deviation from the Charter is highlighted above as the rising cost of debt payments arising from global economic shocks like COVID-19, and the Ukraine-Russia war. The committee recommends that over the medium-term, the Government fully implements the domestic revenue mobilisation strategy for us to generate our own resources to finance the budget and not rely on borrowing at a very high interest rate, which is going to cost and prevent us from achieving the objective. We tested the consistency of the estimates in the Budget Framework Paper. You are aware that the Budget Framework Paper was discussed and processed by this House. The Government, therefore, was mandated to prepare the estimates in relation to and in compliance with the consistency to the Budget Framework Paper. On scrutiny, the committee found out that the resource envelope in the estimate is consistent with the national Budget Framework Paper. In regards to the financial privatisation, the committee found that -

Madam Speaker, I am now going to science, technology and innovation under Presidency Vote 167: Presidential Advisory Committee on Export and Industrial Development by Mr Odrek Rwabwogo and Dei Biopharma factory in Matugga. Support for the coffee value chain development Shs 37 billion and support for vaccine and pharmaceutical Shs 70 billion to Dei Biopharma Factory in Matugga and now suspicious subventions put in the newly created Vote 167 for Science, Technology and Innovations. When Mr Odrek Rwabwogo appeared before the Budget Committee during the retreat at Munyonyo Resort, he informed the committee that this project on coffee value chain development required $ 100 million. He has been allocated $ 10 million equivalent to Shs 37 billion in the budget. This amount for a private investment was directly charged to the Consolidated Fund. In the subsequent Corrigenda, it has been shifted to State House under classified expenditure. Madam Speaker, we differ with the majority decision to provide and shift money mounting to Shs 37 billion for Mr Odrek Rwabwogo under the disguise of coffee value chain development from Vote 167: Science, Technology and Innovation to classified expenditure for logistical support and security under State House Vote 02, as indicated in the addendum to the Corrigenda to the draft budget estimates for Financial Year. Classified expenditures should not be abused to hide irregular personal, illegal expenditures on the Consolidated Fund. Madam Speaker, we have also informed this committee that this new Pinetti; Black Pinetti requires $ 100 million and what is going to happen, Madam Speaker - and I know the game plan now - the moment you make an entry of $ 10 million, they will now go under 3 per cent and provide the rest of the money under

The bigger issue is, you want to invest - Kenya has the same structure across Europe for their flowers and fruits, even at Heathrow, but it is Government owned. That infrastructure is Government owned and that is why, in our proposal, Rt Hon. Speaker - I better wait for the resolution. In the same vein, the budget allocated Shs 70 billion to Dei Biopharma Factory in Matugga to establish a pharmaceutical plant by Mr Mathias Magoola, the Managing Director, and not Hon. Mpuuga. He informed the committee - good enough all this is on record - that the project required the total sum $ 1 billion, an equivalent of Shs 303.7 trillion. The Government will continue charging the Consolidated Fund for a private undertaking for a long period at the tax payers’ expense. Even if Government was to facilitate the establishment of a pharmaceutical facility, the $ 1 billion is a high scale for such a facility. Comparatively, Madam Speaker, the biotechnology firm MODEMA is set to build a similar facility in Kenya at a cost of only $ 500 million and the President of Kenya, His Excellency William Ruto, launched this project just the other day. We are land locked? Okay, that is for another day. We submit that the Consolidated Fund should not be used to act as a lender of first resort to every non-bankable idea. If these projects are feasible and worth support, there are many ways through which the Government can support them. For instance, that money should be channelled through the Uganda Development Cooperation or the Uganda Development Bank for onward lending or, as we have done for ROKO, Abubaker and other agencies, let us go and acquire equity in those ventures and that will protect our children’s money. Besides the Vote, there are nine agencies under the table below with audit queries. Some of the outstanding audit queries include Kira Motor Cooperation. The Auditor-General raised an audit query. The UNCCT has an audit query under the same Vote. Presidential Initiative on Banana Industrial Development (PIBID) has an audit query. Madam Speaker, we recommend: Funding amounting to Shs 37 billion meant for Mr Magogo’s coffee chain should not be approved –

I put the question that Shs 13,612,832,000 be provided for under Vote 109: Uganda National Meteorological Authority as recurrent expenditure for Financial Year 2023/2024. (Question put and agreed to.) Vote 110: Uganda Industrial Research Institute

I put the question that Shs 10,912,400,000 be provided for under Vote 110: Uganda Industrial Research Institute as recurrent expenditure for Financial Year 2023/2024.

8762 BUDGETARY PROPOSALS & ESTIMATES FOR FISCAL YEAR 2023/2024 Vote 103: Inspector General of Government’s Office (IGG) – Shs 23,396,868,000 Vote 104: Parliamentary Commission - Shs 67,491,000,000 Vote 105: Law Reform Commission - Shs 420,012,000 Vote 106: Uganda Human Rights Commission - Shs 531,078,000 Vote 107: Uganda AIDS Commission - Shs 619,300,000 Vote 108: National Planning Authority - Shs 2,014,500,000 Vote 109: Uganda National Metrological Authority - Shs 604,755,000 Vote 110: Uganda Industrial Research Institute – Nil Vote 111: National Curriculum Development Centre - Shs 3,074,000,000 Vote 112: Directorate of Ethics and Integrity - Shs 150,000,000 Vote 113: Uganda National Roads Authority - Shs 2,367,318,611,000 Vote 114: Uganda Cancer Institute - Shs 60,677,401,000 Vote 115: Uganda Heart Institute - Shs 25,827,186,000 Vote 116: Uganda National Medical Stores - Shs 6,651,984,000 Vote 117: Uganda Tourism Board - Shs 100,000,000 Vote 118: Uganda Road Fund - Nil

8548 TRIBUTE TO THE LATE HON. COL (RTD) CHARLES OKELLO-ENGOLA MOTION FOR A RESOLUTION OF PARLIAMENT TO PAY TRIBUTE TO THE LATE HON. CHARLES OKELLO- ENGOLA, FORMER MINISTER OF STATE FOR GENDER, LABOUR AND SOCIAL DEVELOPMENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) AND MEMBER OF PARLIAMENT FOR OYAM COUNTY NORTH, OYAM DISTRICT

8549 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 9 MAY 2023 Allow me to read one condolence message, which is dated 9 May 2023, to the bereaved family of the late Hon. Charles Okello-Engola: “I have learnt with deep sorrow the very tragic and untimely death of Hon. Charles Okello- Engola, Minister of State for Gender, Labour and Social Development (Labour, Employment and Industrial Relations), which occurred on Tuesday, 2 May 2023. I would like to extend my deepest condolences to the entire bereaved family of the late Hon. Charles Okello-Engola, the NRM, Parliament of Uganda, the Government of Uganda and the country at large. The late Hon. Charles Okello-Engola will be remembered for his selfless service to this country. He contributed actively to the liberation of this country, specifically in the fight against the LRA war. He was the LC 5 Chairperson of Oyam and an active member of our party; the NRM. We shall miss him greatly. I pray that the good Lord grants us strength, courage and faith to endure the extremely painful moment. May God grant his soul eternal rest and comfort. Signed by the Vice President, Maj. (Rtd) Jessica Alupo, and the Woman Representative for Katakwi District. (Applause) Rt Hon. Prime Minister, can we have the motion moved? It will be seconded by the Leader of the Opposition.

Madam Speaker, Your Excellency the Vice President, honourable colleagues, I move under Rule 56 of our Rules of Procedure to move a motion for a resolution of Parliament to pay tribute to the late Hon. Col (Rtd) Okello Charles Patrick Engola Macodwogo for his dedicated and patriotic service to the Republic of Uganda. “WHEREAS, Parliament received with deep sorrow, the sad news of the demise of Col (Rtd) Okello Charles Patrick Engola Macodwogo which occurred in Kyanja-Kampala on 2 May 2023; AWARE that Col (Rtd) Charles Patrick Engola Macodwogo had a distinguished career and served in various capacities; in the military and political spheres where he greatly contributed to the political, social, and economic transformation of Uganda: NOTING that Col (Rtd) Charles Engola served Uganda in the following key positions of responsibility: a) The Minister of State for Gender, Labor and Social Development (Labour Employment and Industrial Relations) from 2021 to 2 May 2023; b) The Minister of State for Defense and Veteran Affairs from the year 2016 to 2021; c) Member of Parliament for Oyam North County, Oyam District from the year 2016 to 2021; d) The Local Council V Chairperson of Oyam District from 2006 to 2016. e) The Commander of the Uganda peoples’ Defence Forces for the 501 Brigade 2005; ACKNOWLEDGING that Col (Rtd) Engola Charles Macodwogo served his country with patriotism, commitment and a Commander of Uganda People’s Defence Forces 501 Brigade, played a vital role in ensuring that peace and stability is realised in Northern Uganda; APPRECIATING that Col (Rtd) Engola Charles significantly contributed to the social protection and transformation of Ugandan migrant workers abroad during his tenure in the Ministry of Gender, Labour, and Social Development; NOW, THEREFORE, be it resolved by this Parliament as follows:

Yes, Madam Speaker. On Tuesday, 2 May 2023, the country received the sad news of the passing on of Hon. Col (Rtd) Charles Patrick Okello Engola Macodwogo, the Minister of State for Labour, Employment and Industrial Relations, a Member of Parliament for Oyam North County since 2016 and a member of the Lango Parliamentary Group. Col (Rtd) Charles Patrick Engola Macodwogo was born on 12 October 1958 to the late Rwot (Jago) Nassan Engola and Ketula Engola of Awangi in Iceme, Oyam District. The late Okello Charles Engola was the grandson of Rwot Olong Adilo and great-grandson of Rwot Olwa Abelli of Iceme Village. Madam Speaker, Col (Rtd) Charles Engola attended Atura Common Primary School from 1967 to 1973. He attended Soroti Senior Secondary School from 1974 to 1978. Hon. Charles Engola, attended Kampala International University from the year 2007 to 2010 and awarded a Bachelor of Development Studies. In 2013, he acquired a Master’s Degree in Public Administration and Management from Kampala International University. Col (Rtd) Charles Patrick Okello Engola Macodwogo joined the army in 1980 at the rank of private. He was later promoted to the rank of Major and appointed the Commanding Officer-501 Brigade based in Opit, Gulu. He was promoted to the rank of Lieutenant Colonel and maintained as a Commanding Officer 501 Brigade. In 2006, he was promoted to the rank of colonel and retired from the army. Madam Speaker, Col (Rtd) Charles Engola joined politics in the year 2006 and was elected the LC V Apac District till when Oyam District was created. From the year 2011 to 2016, he was the LC V Chairperson of Oyam. While from the year 2016 to 2021, Col (Rtd) Charles Engola was elected the Member of Parliament for Oyam North County and in the same period, he served as the Minister of State for Defence and Veteran Affairs. From 2021 to the time of his demise, Hon. Col (Rtd) Charles Patrick Okello Engola Macodwogo was the Minister of State for Gender, Labour and Social Development (Labour, Employment and Industrial Relations). Madam Speaker, Hon. Col (Rtd) Charles Patrick Okello Engola Macodwogo was married to Mrs Joyce Okello Engola and they were blessed with children; Sharon Agweng Okello, Samuel Engola Jr, Daniel Olong, Frank Okaka and Feni Brian. Madam Speaker, Charles Okello Engola answered the highest call of serving his country as a professional soldier. He was a war hero and played a fundamental role in the pacification of the northern part of this country against the Lord’s Resistance Army (LRA) rebel insurgency and acquired the name ‘Macodwogo”, meaning “fire has returned”. (Applause) Madam Speaker, in 2019, Hon. Col (Rtd) Charles Patrick Okello Engola Macodwogo, as the Minister of State for Defence and Veteran Affairs (Defence), led a team of Ugandan Members of Parliament to Arabiska Forward Operating Base in Somalia, where they interacted with the UPDF troops and the local leadership.

Much obliged, Madam Speaker. I join the Rt. Hon. Prime Minister in seconding the motion to pay tribute to the fallen son of the land of our ancestors and a very faithful servant of his people. Madam Speaker, we can never get used to death – and death is such a shameless event that has, again, robbed us of a prominent Ugandan, Col (Rtd) Charles Engola, the former Minister of State for Gender, Labour and Social Development (Labour, Employment and Industrial Relations). On my behalf and on behalf of the alternative government, I convey my deepest sympathies to the bereaved family, the people of Oyam North, the people of Lango subregion, the Parliament of Uganda and the people of Uganda for this unfortunate loss. Madam Speaker, this is particularly true in light of the life of the fallen colonel: a life intently lived for a service. He did not only contribute to the legislation process of this country but also served in various capacities such as an army officer, district leader and minister. It is sad that Col (Rtd) Charles Engola has passed on at a critical time when we are yet to conclusively deal with the regulation of labour externalisation that was so close to his heart. We are cognisant of his contribution when he took a decisive stance in cancelling licences of non-compliant labour agents. He was courageous and we applaud him for that. (Applause) Madam Speaker, his death brings to light a sacrifice made in the past as the Commander of the UPDF 501 Brigade in Gulu, where Col (Rtd) Charles Okello Engola played a pivotal role in containing the LRA and restoring peace in Northern Uganda. Madam Speaker, as we pay tribute to a fallen comrade, we are reminded of a similar sitting we had in the 10 th Parliament – those of us who are here – following the gruesome murder of the late Hon. Ibrahim Abiriga and his bodyguard in June 2018. Today’s case might be a little different since the bodyguard who, allegedly assassinated the honourable colleague, also took his own life immediately. The invitation I am making, Madam Speaker, to this august House is that we should not have closed our minds to the various murders of ordinary and high-profile Ugandans such as the late Joan Kagezi, AIGP Andrew Felix Kaweesi and several Muslim clerics, among others, that we have witnessed since 2016. Madam Speaker, two days after Hon. Okello’s gruesome murder, another Ugandan, Ibrahim Tusubira – Jajja Iculi, like you have mentioned and observed ably – was gunned down within the same neighbourhood of the fallen minister. Madam Speaker, allow me to draw the attention of this House back to the address of the President that he delivered on 20 June 2019, in which he outlined a nine-point strategy intended to deal with and defeat insecurity in the country. I will particularly single out his directive to install security cameras across the country – and the fingerprinting of all legal arms in the country.

Madam Speaker and honourable Members of Parliament, on Tuesday 2 May 2023, we lost Hon Col(Rtd) Okello-Engola Macodwogo, Member of Parliament for Oyam North, who was also the Minister of State for the Ministry of Gender, Labour and Social Development (Labour, Employment and Industrial Relations). The sad news came unexpectedly, especially since the day before, he had organised and supervised the celebration of the International Labour Day held in Namutumba District. Many of you saw how active and humble he was; he even walked in the rain to go and make his speech. Prior to Labour Day, he had notified us in top management that he would be wedding in June. He had asked all of us to preserve that month for his wedding. The widow and the family - especially the widow - will not see this day that her husband had planned for her. Your sadness and sorrow are nothing compared to the pain and agony that visited you that Tuesday morning, when we arrived to see the minister lying dead in the compound. I have known Hon. Okello-Engola Macodwogo as a Member of Parliament because we share the district; I am the Member of Parliament for Oyam South and he was the Member of Parliament for Oyam North. However, I got to know him when I was the Woman Member of Parliament for Apac District in 2001. At the time, he was based in Opit Barracks. I had Internally Displaced Persons (IDPs) in my constituency and required that I constantly visit the IDP camps. Opit, where he was, was a stone throw away from my subcounty, Minakulu. That is why in his statement, H.E the President, mentioned Minakulu. As a serving Member of Parliament from the area at the time, the minister in charge of disaster preparedness was Prof. Tarsis Kabwegyere, who requested me to support him in closing the IDP camps. When we toured Oyam to close the IDP camps, Hon. Prof Tarsis Kabwegyere recognised the then commandant of 501 Command Post for the job well done and that was Hon. Okello-Engola, with whom we worked together with the Professor to close the IDP camps. Subsequently, he won the name Macodwogo; he had to swear an affidavit to include it in his name because it was an appreciation for the people of Oyam for the work he did to ensure that we return back from the IDP camps. He then developed interest to contest for an elective position, but because of his good work, he did not want to accept. It was his brother, Hon. Sam Engola, who is seated there, who came and negotiated for his promotion and retirement from the Army for him to contest as the LC 5 Chairman, Apac District. When he contested, he won with 93 per cent. He was then appointed after serving two terms of serving in Parliament; he was appointed the Minister of State for Defence and Veteran Affairs. In this term, he was appointed the minister of state in our ministry. During his tenure as the Minister of State in the Ministry of Gender, Labour and Social Development, he was in charge of negotiations, engagements and implementation of labour issues emanating from IGAD, the East African Community, the African Union and the Organisation of Islamic Cooperation. We already have a minister from Kenya who is arriving shortly to pay tribute to him because they have been working on these matters together. He was overseeing inspections of workplaces for compliance with safety and occupational health issues. He had toured so many areas; he had inspected almost all plantations in the country and very many factories. He was coordinating ministerial involvement with the Industrial Court because it is the one that deals with labour matters. He was supervising the pursuit of compensation claims and labour disputes. Many people get complaints about labour issues and they require compensation. He was handling those disputes almost every day. Most times, the employers wanted to pay

8588 TRIBUTE TO THE LATE HON. COL (RTD) CHARLES OKELLO-ENGOLA to do due diligence on these people; mental check-ups. We are talking about people who are running mad due to frustration. For example, you send these people to Somalia and wherever and when they come back, you need to counsel them and do rehabilitation. The stress they go through while there cannot be something that you can just push and say, “go and guard Hon. Betty Amongi.” These people are frustrated. When you hear the story that Hon. Mukula was talking about - this young man had a loan and two women in addition to other things. We need to see how best we can handle the stress that these people go through. Honourable members, as we conclude, what Hon. Imat Cecilia Ogwal was talking about was only urging the Government. We urge the Government - and we are not saying the Government should do - but we urge you. That is why she said it is upon you to do it or not. If you loved your person, do it. (Laughter) Honourable members, I want to end here by urging all of you. We have never failed to support our fallen honourable colleagues. We have lost a number of honourable colleagues in this House and we have continuously supported the families of those honourable colleagues. We lost Rt Hon. Oulanyah and we continued supporting the family. We lost Hon. Okabe and we continued supporting the family. I am also asking this Parliament to continue supporting and standing with the family of the late Hon. Charles Okello-Engola. (Applause) As the leadership of the institution, we will continue standing by our fallen honourable colleagues. To the family, God gives and takes. Hon. Charles Okello-Engola has fought a good fight and won. He will always be remembered for all that he did in Lango and Uganda in general. Be strong, he has left a legacy; take on the mantle. We will continue to pray for you and where we can support you, we will. May the good Lord continue to comfort you during this painful time and God will see you through. Many of us, you see here, are total orphans but we have been able to make it. The God we serve is a God of orphans and widows so He will see you through. I now put the question that Parliament pays a glowing tribute in honor of the late Col (Rtd) Okello Charles Patrick Engola Macodwogo, the former Minister of State for Gender, Labor and Social Development responsible for Labor, Employment and Industrial Relations and a Member of Parliament for Oyam North County, Oyam District with the amendment proposed by Hon. Cecilia. (Question put and agreed to.)

8440 Disclaimer: The electronic version of the Official Report of the proceedings of Parliament (Hansard) is for information purposes only. A certified version of this Report can be obtained from the Office of the Clerk to Parliament. THE INCOME TAX (AMENDMENT) BILL, 2023 has been around for five years and in all these years, it has been rejected. Since they are talking about Kenya - we have now repealed all capital allowances, which have been one of our main problems. I can assure you that the one who has been making Shs 100 million will now be able to pay tax because he will make a trading profit, and since he is not being given the accelerated capital allowances, the Shs 100 million will be subjected to the 30 per cent. Madam Speaker, accelerated capital allowance is not a tax exemption; it is a deferment, which means that if I have put up an industrial building, which should be given a 20-year life, I am allowed all that expenditure in one year. That means if you spread it over 20 years, I would be allowed only 5 per cent. That means there will be some income to pay the corporation or income tax. So, since we have repealed Section 27(a), which was bringing those accelerated allowances, it would be important to first test it to confirm what the problem is. Secondly, if you decide to say that you are assessing somebody’s losses, then we must change the law, which I am repeating - instead of having it as the Income Tax Act, we should have Loss Tax Act - (Laughter)– yes, because we have stopped taxing income, we should come up with a Loss Tax Act. Madam Speaker -

We all said most of the people move from Wakiso; so, how do they come to the city? Mr Speaker, there is a lot of pressure on the roads from goods and the people. Look at the tonnage of trailers that enter the city; over 25 tonnes enter and offload within the city. Meaning the pressure on these old roads is too much. This is why a Member was talking about huge potholes that are like craters or graves in an industrial area because the tonnage of trucks that offload from within the industrial area cannot be sustained anymore.

Thank you, Mr Speaker. I would like to commend KCCA for commencing works on Old Port Bell Road and Springs Road in Nakawa Division where I reside. However, in the ministers’ statement, he did not indicate when they will desilt Nakivubo channel right from Bwaise through industrial area up to prisons. Mr Speaker, if you drive or move along Bwaise, you will find the drainage channel completely full with a lot of rubbish, bottles and all kind of things. I do not know why the minister did not include that in his statement. It would have been much better, if he informed Ugandans that they are going to work on the drainage channels because it is very important. Finally, for us to have a better road network in the city, I think the Lord Mayor should have a good relationship with the Government. He has sat and told the world that he will never engage the President over issues. Yet, if you want to run a better city, you must engage the Head of State and technical people – (Interjections) - such that you get enough funds to run the Government and the city. Thank you.

8234 Disclaimer: The electronic version of the Official Report of the proceedings of Parliament (Hansard) is for information purposes only. A certified version of this Report can be obtained from the Office of the Clerk to Parliament. MINISTERIAL POLICY STATEMENTS & BUDGET ESTIMATES FOR THE FY 2023/2024 The committee recommends that the Ministry of Education and Sports liaises with the Ministry of Finance, Planning and Economic Development to provide for the necessary wage bill amounting to Shs 6.7 billion to implement the scheme of service in the education sub- programme. g) Inadequate staff housing across education institutions The committee recommends that the Ministry of Education and Sports liaises with the Ministry of Finance, Planning and Economic Development and other stakeholders in order to provide staff housing for teachers and tutors in different education institutions across the country, especially those in the hard-to-reach areas. h) John Kale Institute of Science and Technology The committee observed that the Project 1368 John Kale Institute of Science Technology was exited from the Public Investment Plan (PIP). We recommend that the Project 1368 John Kale Institute of Science and Technology is reinstated in the PIP since it was a Presidential pledge, and will also address the needs of the people in the Kisoro sub-region. i) Directorate of Industrial Training (DIT) There is inadequate funding of the lower secondary curriculum. We recommended that the Ministry of Finance, Planning and Economic Development should allocate DIT with an additional Shs 11.44 billion for training of 14,016 secondary school teachers on Assessment Training Packages (ATP) and Competence-Based Education and Training (CBET) approaches to ensure the full implementation of the lower secondary curriculum. Mr Speaker, we observed, during our oversight trips, that most of the secondary school teachers implementing the lower secondary curriculum have not got the hands-on skills that they are able to transfer to those students. j) Higher Education Students Financing Board As I already communicated above, the committee recommends that the Ministry of Finance, Planning and Economic Development urgently allocates the Higher Education Students’ Financing Board additional Shs 20.664 billion in Financial Year 2023/2024 to enable 4,189 students already on the scheme to continue with their studies, and enable 1,500 new cohort attain higher education by accessing loans through the board. Mr Speaker, there is a big problem here. The board has not been provided with the funds because of those cuts and the universities are threatening to dismiss the students from studies. k) Shs 14.59 billion be allocated towards clearance of fees domestic arrears accrued with the various universities to avoid litigation due to non-payment – they made MOUs with universities and some universities, especially the private universities, are threatening to sue the board. l) The Ministry of Education and Sports implements section 42 of the Higher Education Students’ Financing Board Act, as has always been recommended by the committee, to vest all kinds of Government scholarships with the board as was envisaged in the Act. As we speak, most of these scholarships are still scattered in different places, including the central scholarship in the Ministry of Education and Sports. m) The funds the Government allocates to the 4,000 students, on merit, be allocated towards the board funds so that we can help more needy students to access higher education through the loan scheme. The reason the committee is recommending this is because we have realised that most of the 4,000 students who are admitted, on merit, to these universities are from the high-notch

8253 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 20 APRIL 2023 Disclaimer: The electronic version of the Official Report of the proceedings of Parliament (Hansard) is for information purposes only. A certified version of this Report can be obtained from the Office of the Clerk to Parliament. and Construction Company Limited and the Ministry of Defence and Veteran Affairs, in this financial year, to cater for the balance on the acquisition of the National Housing and Construction Company Limited towards the clearance of the debt owed by the Ministry of Lands Housing and Urban Development. And also Shs 88 billion be given to National Housing and Construction Company Limited, as arrears. Mr Speaker, the committee, therefore, reiterates its earlier recommendation that indeed, the Shs 88 billion should be paid to the National Housing and Construction Company Limited and then the Shs 55 billion to the Ministry of Lands, Housing and Urban Development, which will be later paid to National Housing. Under land acquisition and compensation, the committee recommends that Government commits to funding the settlement of payment towards outstanding obligations to claimants under the various ranches since the arrears have really gone to a big figure of Shs 372.3 billion, and the narrative has been given in the report. You will see that that is an unfunded priority. The committee recommended that the Physical Planners Registration Board, whose Act was enacted, should be operationalised but there are no funds for that. Acquisition of land for the development of low- cost residential houses for industrial workers The committee was informed that Shs 25.5 billion is required for land acquisition. The committee notes and appreciates the urgent need towards solving Uganda’s housing problem, especially in providing low- cost residential houses for the urban poor. Therefore, it recommends that Government should prioritise funding in order to curb the rapid growth of slums. The maintenance of Land Information Systems The committee recognises the importance of a well-maintained Land Information System, especially in revenue collection. We have been told that the current one has challenges in securing land records, land tenure security, reduction of corruption, improvement in service delivery and consolidation of revenue collection. Therefore, the committee recommended that an additional Shs 5 billion be allocated towards the maintenance of the Land Information System from the Shs 15 billion allocated to land compensation because the Land Information System is helping the ministry to generate revenue. Ministry Zonal Offices (MZOs) The budget is only Shs 18.406 billion for the activity. Only Shs 4.105 billion has been provided. The funding gap is Shs 14.301 billion. The committee recommends that an additional Shs 4 billion be allocated for the operationalisation of MZOs from the Shs 15 billion allocated towards land compensation. Likewise, staffing under the MZOs has been a big problem. There have been many queues and complaints. The committee recommended that Shs 2.478 billion be allocated to cover the funding gap towards staff recruitment in MZOs so as to deal with those many queues. Re-affirmation of the international border The committee was informed that the ministry had budgeted for Shs 5.391 billion but only Shs 0.591 billion has been allocated, leaving a funding gap of Shs 4.8 billion. The committee, therefore, recommends the provision of Shs 4.8 billion for the re- affirmation of the international border in this financial year. People, especially in the North, have had challenges with our neighbouring country. Under NTR, the committee recommends that Government should endeavour to finance the priority areas that require urgent attention as

Min.3 - Consideration of Policy Strtcments rnd Budget EstimetesFY 2023f2024 by Agencies end Depertments. The Agencies and Departments presented their respective Policy Statement and Budget Estimates for the Financial Year 2021124 (see attachments for details) Directorete of Industrial Treining @tT) O b s e rval io ns/I s s a es ru is e d The Committee sought to establish: (a) Justifications for DIT's curriculum being limited to students in lower secondary level alone; (b) whether certificates awarded by thc DIT guaranteed students' marketability and employability in the world of work: (c) Govemment's plans to publicise and sensitise the general public on thc mandate, objectives and activities of DITI (d) An account by Covemment not listing Shimoni University dedicated to training future educationlsts/career educationistsl (e) An account by National Council for Higher Education (NCIIE) not providing for budget lines for transition of National Teachers Collcgcs (NTCs) to National Institute of Teacher Education (NITE); (f1 The number of court cases NCIIE has been involved in; 19) The fate other public and private universities offering dcgrce courses in Education, grven Govemment's Policy whrch will mandate UNITE to offer dcgrcc courses in educationl (h) NCHE's plans to increase the ratio oftechnical and diploma graduates to bachelors' degree holdersl (i) NCHE's plans to resolve issues of Public Universities having multiple branches in different regions of the country. O Whether it was NCHE's responsibility to determine the unit cost for every University; (k) Whether NCHE had plans by NCHE to ensure that all students join University at the samc time Responses lo Issues/obsetalions raised; Tlrc Management of Directorate of Industriul 'liaining inlormed the Committee: (a) that the purpose of limiting DIT's currrculum to lower secondary was to address implications of school drop outs: and to create oppo(unities and rnstil hope among the affected students; and

Anncr l: LIAT OF UltFUltDED FOR THE EDUCATIOII SFORTA AND SXILLA ST'B PR(rcRAi'ME FIOR TIIE I.II|AT{CIAL YE,AR2O23I24 o13-UOEa Grant ardms primarv schools 17.80 Grant aidins 128 orimarv schools Grant ardrnq secondarv schools 36.88 Grant aidine 87 sccondarv schools Rehablhtation of traditronal schools l5 Rchabihtatron of traditronal schools Sala4r enhancement of Arts Teachers 90 Funds be allocatcd towards salary enhancement of the Arts teachers to ensure oualitv educatron. Wage brll for 4,809 teachers recrurted and not deDloyed t22 For the wage brll of 4,8O9 teachers, recruited and not deployed due to lack of wase bill. Recruitment of 3,OOO pnmaqr teachers 25 Recruitment of additronal teachers for pnmary school to close the qap. Teachers Scheme of Servrce 6.704 Implement the Scheme of S€rvrce to motivatc teachers espccially those that have served for long at the same level Recrurtment of at least 3,0OO addltronal pnmary teachers 25 To rmprove on the pup teacher ratro ln the least-staffed Dnmarv schools Drrectorate Industrial Traimnc t1.44 Inadequate funding of the lower secondary curnculum dehvery. 14,016 Secondary School Teachers to be tralned on Asseasment Trainrng Packages (ATPS) use and Competence Based Educatlon and Tramrng (CBET) approaches for each of the 78 occupations ofATPs from 5,502 schools to be trarned under the Lawer secondary Curriculum. Higher Educatron Students' Financins Board. (HESFBI 35.2s MFPED urgently allocates HESFB an additional UShs 20.664bn rn FY2O23l24 to enable 4,189 students already on the scheme contrnue wlth their studies and to enable 1,500 new cohort attarn higher educatron by accessrng loans through the Board UShs 14 59bn bc allocated towards clearance of fees domestic a-rrears accrued wlth the varlous Universitres to avoid litlgatlon due to non-paJrmcnt. ll I Uganda Allied H€alth Examlnatlons Board (UAHEBI t26 Re-rnstate rts subventron budget of UShs 6,36O,O01 ,O24 and an addltronal UShs 6,239,998,976 be allocated to UAHEB for the Board to effectrvely carry out its mandate.

Okay. On page 78 – I have just a few pages to go. On the development of an in-house audit management system, the committee recommends that an additional Shs 5.4 billion be allocated to the Office of the Auditor-General for the development of this system. They require the acquisition of additional land for the construction of a Centre of Audit Excellence, where we are recommending Shs 1.8 billion. The Office of the Auditor-General Impact Assessment Perception Survey requires Shs 1,203,000,000, which we are recommending should be made available. Uganda Investment Authority The committee recommends that Shs 251 billion be allocated to Uganda Investment Authority for the development of industrial and business parks. Setup of regional one-stop centres and the implementation of automated eBiz services require Shs 4 billion, which we are recommending should be made available. Enhancing foreign direct investment and DDI development in the country requires Shs 2 billion, which we are recommending should be availed. Enhancement of viable investment opportunities requires Shs 2 billion, which we are recommending. Implementation of the Kabale Industrial Business Park Namanve Project requires Shs 9 billion, which the committee recommends should be made available. Under Capital Market Authority, there is a small budget required. Uganda Revenue Authority - under Rental Tax Compliance Management System, they have a deficit of Shs 14.785 billion, which the committee is recommending should be made available. For specialised audits, they require Shs 16.72 billion, which the committee is recommending should be made available to them. Uganda Bureau of Statistics Uganda Bureau of Statistics has a big shortfall regarding the population census, which is this year – actually, it was supposed to have been in August. Shs 160 billion has not been made available for their preparatory activity. It will be in the next financial year, so, the budget is in the next financial year. However, they have not been given the Shs 160 billion for the preparatory activities. The committee is recommending that all possible measures be explored to see that that is identified to support the population census activity. Without it, the population census activity may have to be deferred. The others are about Public Procurement and Disposal of Public Assets Authority – Mr Speaker, I think I should leave the rest for the Members to read for themselves. Those are the key highlights.

Thank you, Mr Speaker. I would like to thank the committee for the report that has been ably presented to Parliament. I have picked the issue of the industrial parks because the industrial parks and the business parks are one of those strategies that have been approved to promote industrialisation and Shs 254 billion, in my opinion, is a budget that is way below what is actually needed. We need to support this at the beginning because our country deserves it. If you look at the new wars, it is not going to be the guerrilla type. It is around poverty, unemployment water poverty and these are things that we need to address. Also, industrial and business park development has got to go along with the support of marketing. Many countries have invested in industrial parks but failed to provide resources for marketing them. At the end of the day, they have turned out to be “white elephants”. We need to ensure that the investment in industrial parks is matched with investment in the marketing of the industrial parks. The proposal around the setup of regional one- stop centres in the report is a very good issue; it should be taken as a priority because this is what also will facilitate the local investors to take part in the industrial parks. Many countries have realised that after coming up with this good strategy, it is foreigners that have taken advantage because the locals remain ignorant about what happens. So, the regional one-stop centres will be able to inform the locals about the opportunities. I beg to Summit.

Thank you, Mr Speaker. This is our report. We have the Office of the President, State House, Office of the Prime Minister, Minister of Kampala City and Metropolitan Affairs, Uganda AIDS Commission, Uganda Industrial Research Institute, Directorate of Ethics and Integrity, Kampala Capital City Authority, Internal Security Organisation, External Security Organisation and the Science, Technology and Innovations. Thank you, Mr Speaker, for the guidance. Under the Office of the President - Our report has been uploaded. Let me go to page 6: Investiture ceremonies and patriotism We have a funding gap for investiture ceremonies and patriotism. The funding gap is Shs 9.1 billion and that is what we are requesting for. Inadequate office accommodation for RDCs Mr Speaker, we have a funding gap of Shs 7.2 billion and that is what we are requesting for. Procurement of medals for awards This is very necessary because, as a country, we host Heads of State and they do the same to us when our President visits them. We have a funding gap of Shs 4.23 billion and that is what we are requesting for. Facilitation for presidential advisors Mr Speaker, these positions are provided for by the Constitution. They have been appointed and we have to facilitate them. We have a funding gap of Shs 5.1 billion and that is what we are requesting for. Under monitoring and evaluation under the Office of the President, we have a funding gap of Shs 10 billion and that is what we are requesting for.

8160 Disclaimer: The electronic version of the Official Report of the proceedings of Parliament (Hansard) is for information purposes only. A certified version of this Report can be obtained from the Office of the Clerk to Parliament. MINISTERIAL POLICY STATEMENTS & BUDGET ESTIMATES FOR THE FY 2023/2024 For recruitment of human resource and support services for HIV/AIDS messages to trickle down, we have a funding gap of Shs 2.73 billion and that is what we are requesting for. Uganda Industrial Research Institute (UIRI) Research and development For research and development, UIRI has a funding gap of Shs 2.14 billion and that is what we are requesting for. Wage and utility costs Mr Speaker, under this, we have a funding gap of Shs 4.466 billion. Ethics and integrity On page 27, we request for a correction of an anomaly. There was Shs 3 billion meant for development, but it was put under wage. So, we request that it be corrected in the coming financial year. Establishment of Vote – that is a policy matter. Lack of funding to Pornography Control Committee Mr Speaker, we have a committee to control – with what is happening, especially the homosexuality issues, we feel this committee needs to be empowered. They need Shs 4.2 billion. Dissemination of anti-corruption laws Mr Speaker, we feel we need to do more. Ethics and integrity needs to move from the headquarters up to the lower level, including to our schools and other institutions, to talk about corruption as well as the laws which are meant to manage corruption. We are asking for Shs 2.85 billion. Internal Security Organisation (ISO) Our major priority is to ensure transport equipment for ISO. Our request cuts across. We are requesting for motorcycles and motor vehicles. The funding gap that we want to address is Shs 10 billion. Facilitation to Internal Intelligence Collection by ISO Mr Speaker, for our safety and management of our peace, we feel ISO’s intelligence work has to be enhanced. We have a funding gap of Shs 10 billion – that is what we are requesting for. Enhancement of technical infrastructure Intelligence surveillance cannot be done if we do not equip our infrastructure to aid surveillance. The money we are asking for is Shs 15 billion. Construction of the Institute of Security and Strategic Studies Mr Speaker, we have been losing a lot of money yearly, because our staff are being trained outside the country to the tune of Shs 3 billion per annum. We would love to get support to have our own institute to reduce this recurrent expenditure. Therefore, we recommend that this facility is constructed – it requires Shs 123.9 billion. Under the construction of the transport equipment workshop, we are requesting for Shs 8.3 billion to ensure security service cars are not serviced in ordinary workshops because anything can be put in those cars, and they can be tracked. Therefore, we are asking to have our own workshop. External Security Organisation Mr Speaker, we have our observations and recommendations on page 36. Foreign intelligence collection We recommend that this be enhanced and the budget gap is Shs 15.7 billion; that is what we are requesting for.

Mr Speaker, Vote 001: Office of the President Recurrent budget - Shs 228.1 billion Development expenditure - Shs 22 billion Vote 002: State House Recurrent budget - Shs 401 billion Development expenditure - Shs 21.7 billion Vote 003: Office of the Prime Minister Recurrent expenditure - Shs 87.1 billion Development expenditure - Shs 135.3 billion Vote 023: Ministry of KCCA and Metropolitan Affairs Recurrent expenditure - Shs 7.8 billion Development expenditure - Shs 45.6 billion Vote 107: Uganda AIDS Commission Recurrent expenditure - Shs 15.9 billion Development expenditure – Shs 619 million Vote 110: Uganda Industrial Research Institute Recurrent budget - Shs 11.9 billion – (Interruption)

8217 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 19 APRIL 2023 Disclaimer: The electronic version of the Official Report of the proceedings of Parliament (Hansard) is for information purposes only. A certified version of this Report can be obtained from the Office of the Clerk to Parliament. as a mandate, and also to support the Parish Development Model. Funding of the Uganda National Cultural Centre The committee underscores the importance of the creative arts industry to the development of the country and is cognisant of the potential it has, especially for the young people. However, the importance of the creative industry has not received its due recognition and the Uganda National Cultural Centre is in arrears of Shs 0.77 million in salaries. The centre also has gratuity arrears of Shs 3.37 billion, which is a statutory obligation. It requires operational funds of Shs 5 billion to carry out activities and reach out to various artists. The committee recommends: i. That Shs 0.77 billion be allocated to the Ministry of Gender, Labour and Social Development to cater for salaries of staff at the Uganda National Cultural Centre. ii. That Shs 5 billion be allocated to the ministry to cater for planned activities at the Uganda National Cultural Centre. Functioning of the Industrial Court The committee takes note of the significant role played by the Industrial Court in the administration of labour justice, which is a cornerstone of industrialisation. The NDP III and the administration of justice programme aim to make labour justice accessible for all. The committee notes that the effects of the amendment have not been catered for -

Mr Speaker, the Industrial Court requires Shs 6.83 billion and another Shs 14.694 billion for operationalisation of the Labour Disputes (Arbitration and Settlement) (Amendment) Act, 2021. Operationalisation of the Medical Arbitration Board The committee recommends Shs 0.100 billion allocated to the ministry for operationalising the Medical Arbitration Board. Operationalisation of the Labour Arbitration Board It requires Shs 0.6 billion. The Social Registry This requires that the Ministry of Gender, Labour and Social Development to establish a social registry and update it consistently in order to provide reliable data for social protection. The gender ministry should even expedite the processing of the National Social Protection Strategy by the close of the Financial Year 2022/2023. National Apprenticeship and Graduate Volunteer scheme It requires Shs 5 billion. Even then, the ministry should increase awareness about the scheme to enable more beneficiaries and equitable placements. Functional adult literacy It requires Shs 0.2 billion to revamp the functional Adult Literacy Programme so that it complements the other initiatives in place. Funding for the Equal Opportunities Commission This requires an enhancement of Shs 10.1 billion for scaling up implementation of gender and equity planning and budgeting for both central and local governments, for comprehensive research and report on the state of equal opportunities in the country, and for awareness creation on the issues of equal opportunities and affirmative action. The social development sector is core under the SDGs, the ILO Convention, Vision 2040

Thank you very much, Mr Speaker. I want to start by appreciating the work of the committee and to mention that if we need to be serious in this country, agriculture should not have unfunded priorities. Every activity in the agricultural budget should be funded because everyone accepts it as our backbone. It is the engine to drive all the other factors that we are talking about. By the time the Budget Committee looks at this report, they should give it due consideration. Secondly, we know the kind of land tenure system that we have. Although the effort is to ensure that the commercial farmers are supported, we should also be dealing with the transformation from household to subsistence agricultural farmers that should transit from the rudimentary methods to the mechanised methods. If you are to do that, you do not just pick them at once and throw them to the higher levels. That is why I want to support the proposals for the smaller agricultural mechanisation unit, for example, the handheld tractors. We can even talk about the Ox-plough instead of the hand hoes. In the industrial revolution in Europe in 1888, Europe used the Ox-plough; such a long period of time. So, we need to catch up with them. On the issue of extension workers, I would like to emphasise that given that we have small acreage and since it has been proven that we can have more production per acre, if we do not have access to full time extension services, then we are bound to fail. Even the most elite farmers like us, who are here, will fail from the onset. So, this should be – (Member timed out.)

TFTA Tripartite Free Trade Area Textile Development Agency Trade, Industry and Cooperatives Sector Development Plan Uganda Cooperative Alliance Uganda Cleaner Production Centre Uganda Development Corporation Uganda Export Promotion Board Uganda Hotel & Tourism Training Institute Uganda Investment Authority Uganda Manufacturers Association Uganda National Bureau of Standards Uganda National Commodity Exchange United Nations Industrial Development Organisation TEXDA TIC-SDP UCA UCPC UDC UEPB UHTTI UIA UMA UNBS UNCE UNIDO URA Uganda Revenue Authority Uganda Wildlife Authority Uganda Wildlife Conservation Education Centre Uganda Warehouse Receipt Systems Authority Uganda Wildlife Research & Training Institute UWA UWEC UWRSA UWRTI wRs Warehouse Receipt System c wTo World Trade Organisation UTrr) 5

Soroti - Working Capital Cocoa processing factory in Bundibugro 4.65 Potato processing factory r.o0 Sponge iron manufacturing factory 4.00 Feasibility/ business plans/ investment appraisal / business valuation/ value chain studies 2.45 Sanga Vet Chem (U) Ltd 4.00 Packaging plant 1.OO Delight Uganda, Ltd 1.O Subtotal 23.45 Gtaad Total 3?.22 3.491 Proposed budget for UDC is UGX.37.22Bn out of which UGX. 13.64Bn is allocated for Recurrent /operations activities while UGX.23.57Bn is allocated to Capital Development -Projects see table above. Comlnlttec Obscnratlons: Ia regard to UDC, thc Coamlttcc obrcnred as follows: The Committee observed that as follows: 1. Section 28 of the UDC Act established an industrial and economic development fund, which fund is supposed to be utilised to implement the objects of the Corporation including but not limited to the industrial and economic development of Uganda. The Conmittce reconnenda that fuads bc allocated to IIDC EubJcct to the follorlng; (il Thc maaagcment of UDC rhould loprovc lnplementation proce by ensuring that regulatloac aad guidelinca for thc co and nanagcment of & arc in plece. 49

(iil A 'f,'und-based' financing approach of UDC shoutd be adopted; urhere by a feaslbility report informs the funding of a project, instead of 'projectised, Iinancing where funde are sent to UDC already tagged to an investment prdect to be funded in the absence of feasibilit5r studies. This will allow flexlbility during implementation of investment projects. (iiil rhe industrial development fund established undcr sectlon 2g of the Uganda Development Corporation Act, 2016 should be operationalised for purlroses of ensuring a fund-based Iinancing approach of UDC. (ivl The IIDC board should set strict targcts for investments to gcnerate revenue and enable the projects to yteld dividends for the benefit of all Ugan&ns in fulfitneat of the objects of the corporatioa. 2. The committee further observed that capitalisation to UDC is mostly by supplementary budget which distorts budget implementation which undermines the important ace of the institution as investment Arm of Government. 3. The Committee was informed that UDC rntends to carry out an equity financing investment to establish a packaging production plant in Lira district to reduce on importation of packaging materials in the country. The expected benefits rnclude; Reduced import brll through import substitution of packaging matenal, Provision of employment to the local community arrd Source of ta-r revenue to local and central government This however has remained in the unfunded priorities. Recomnendation: The Comaittee therefore recommeads that Uganda development Corporation should be adequately funded during the budgeting proccss to avoid eupplementar5r budgeta. 0 50

Clerk, please jump these items for now because I have not received them. I need to go to item No.4. LAYING OF PAPERS THE PROPOSAL TO BORROW UP TO SDR 68.6 MILLION (EQUIVALENT TO USD 96 MILLION) AND A GRANT OF SDR 74.3 MILLION (EQUIVALENT TO USD 104 MILLION) FROM THE WORLD BANK TO FINANCE THE INVESTMENT FOR INDUSTRIAL TRANSFORMATION AND EMPLOYMENT (INVITE) PROJECT

Thank you, Mr Speaker. I beg to lay on the Table the proposal to borrow up to Special Drawing Rights 68.6 million (an equivalent of USD 96 million) and a grant of Special Drawing Rights amounting to 74.3 million (an equivalent to USD 104 million) from the World Bank to finance the investment for industrial transformation and employment project. I beg to lay.

(Independent, Industrial Division, Mbale City): Thank you, Madam Speaker. Pursuant to Rule 147 of the Rules of Procedure, I beg to lay the alternative policy statement for the Ministry of Tourism, Wildlife and Antiquities for the Financial Year 2023/2024.

7606 ADDRESS BY H.E. GEN. YOWERI MUSEVENI on the issue of the Parish Development Model (PDM). As a consequence of that, I decided to, again, interact with you, honourable members, on these issues. To properly contextualise the issue of the PDM, I must remind the honourable members of the principles of the National Resistance Movement, which are: patriotism, Pan- Africanism, socio-economic transformation and democracy. The PDM comes directly under principle No.3 - social economic transformation - although it cannot thrive without the other three: patriotism, Pan- Africanism and democracy. I have pointed out before in many writings that society is like some of the insect species that go through a biological process known as “metamorphosis”, which has got a number of stages that start with an egg, caterpillar, pupa and mature butterfly, for instance. In the last four and a half million years of human evolution, ever since man gained the homo sapiens sapiens form, the society he created has been metamorphosing. Karl Marx, by 1848, when he wrote the Communist Manifesto, pointed out that up to that point, society had gone through five social systems. These were: the primitive communalism system, the slave state, feudalism, capitalism and we were then - that time of Karl Marx - entering the system of socialism and communism. Although some greedy and narrow-minded groups in the world completely dismiss this analysis and indeed the communists made their own philosophical and strategy mistakes, there is no doubt that the method of class analysis of society is correct and so is the phenomenon of social transformation. If those who claim to study social sciences in Africa were serious, they would have noticed the societies in Europe, by the time of the Renaissance, 1400 AD, where three classes in societies comprised of the feudalists, the peasants and the artisans. By the time of the French Revolution in 1789, the European society had evolved into a four-class society being the feudalists, the aristocrats, the middle class, the bourgeoisie - as they were called - the proletariat - the working class - and the peasants. If you go to Europe today and look for peasants and the feudalists, you will not get them. The society appears to have become a two-class society, comprised of the middle class and the skilled working class. Each of these historical social classes has got different productive capacities, high or low. What was the productive capacity of the primitive communalist societies? What was the productive capacity of the serfs, who were called Abasenze in our language here, Ab’ebibanja , on the land of the feudal landlords, Aba Mailo , before 1928. What is the productive capacity of the bourgeoisie that are conscious of the difference between the input cost and the final price of a product that we call profit? What is the productive capacity of the proletariat, e.g. the industrial working class, that is skilled and working for wages? On the account of some of the reasons that we do not have time to go into here, this social metamorphosis was faster in Europe than in Africa, Asia, or in the Americas. It is this lagging behind in social evolution that caused so much damage and problems to Africa, Asia, and Latin America. Indeed, by 1862, when John Hanning Speke came to Uganda, our societies were three-class societies, comprised of the feudalist, Abalangira (Princes) and warlords, as class number one; the peasants, commoners and three, the artisans. By 1962 when Uganda got independence, the federal class were much weakened by the colonial system and the artisan class had either been eliminated or was greatly weakened. We do not have time to go into the details of all this, but I suggest that you study these issues. It was only the peasants that were still alive but largely not involved in the new economy of money. By the census of 1969, as many as 96 per cent of the homesteads were outside the money economy - abakolera ekidda kyoonka tic me ice keken) - working only for the stomach. It is at this point that we came on the scene in the 1960s.

Madam Speaker. I beg to lay on the Table, the ministerial policy statement and budget estimates for the Ministry of Science, Technology, and Innovation under vote 167 and other votes, and Vote 110 for the Uganda Industrial Research Institute.

We also undertook fact-finding missions by visiting the power plant in Jinja to assess the status of the dam. We did a comparative study in Kenya and interacted with the Minister of Energy in Kenya, the Kenya Electricity Generating Company, and the Kenya Power, Energy and Petroleum Regulatory Authority. I have laid the minutes of these meeting, among the documents. Findings, observations and recommendations The Ad hoc Committee, under TOR 1, which was to ascertain the Government of Uganda’s equity contribution in Bujagali and return on investment On 8 December 2007, the Government of Uganda entered into a shareholders’ agreement related to the operation of Bujagali Energy Limited, Bujagali Holdings Power Company Limited, SG Bujagali Holdings Limited and Bujagali Energy Limited. The project’s total equity was $199,866,000. Out of this equity, the Government of Uganda’s equity contribution was $20 million and BEL shareholders contributed $179,886,000. Government of Uganda’s contribution was issued and classified under Class C Ordinary shares as summarised in the table below. When you look at the table, you realise that we have two shareholders. We have the Government of Uganda, with $20 million under Class C and Bujagali Energy Limited, which contributed $179 million, under classes A and B. The equity contributions to the project by the sponsors were in two parts, that is, the $179 million. The expenditure incurred, between 2005 to 2007, amounted to $20.6 million that was split between Sithe Global and Industrial Promotional Services. You can see the figure. Further contribution to a tune of $159,222,833 was made between 2007, 2008 and 2012. The equity contribution of $20 million by the Government of Uganda was in kind. For the Government of Uganda, the certificate of shares issued No. 6, under the Common Seal of Bujagali Energy Limited to the Minister of Finance, Planning and Economic Development, allotted a total of 360,000 Class C shares at Shs 100,000 per share. This is equivalent to a capital contribution, to the project, of Shs 36.17 billion but with no voting rights as a shareholder in the company as per the provisions in Clause 13(1) (b) of the agreement.

7577 THE ELEVENTH PARLIAMENT OF U GANDA WEDNESDAY, 15 MARCH 2023 v. Other taxes vi. Operations and maintenance costs for the power plant vii. Miscellaneous charges, and viii. The Government equity repayment. Remember, out of these components, the Government equity repayment is zero and Corporate Income Tax (CIT) is zero. If you look at that chart, you will realise that the biggest cost driver, which accounts to 52 per cent, is the return on equity. That is as a result of the other 19 per cent that was negotiated. The total cost, as indicated in the graph, is US$ 129.3 million per annum. Under Section 21 of the Income Tax Act, the Parliament of Uganda approved a five-year CIT in July 20l7. The exemption was on the income earned by BEL operating the Bujagali Hydro Electric Power Plant. According to URA, for the income tax exemption period commencing 20l8 to 2021, BEL declared exempt income resulting in potential CIT foregone of Shs 388.7 billion. So, according to URA, the CIT foregone was Shs 388.7 billion. If they had paid, this money would have gone to the Consolidated Fund. The table is highlighted there. The waiver of the CIT to BEL was one of the interventions carried out by the Government to reduce the generation tariff payable to BEL and, by extension, the purpose was to reduce the end user tariffs. The cost driver, as indicated, includes: debt service and return on equity, including tax. Therefore, tax is just one component of the total cost. The Ministry of Energy and Mineral Development demonstrated the advantages of the waiver. As you can see, the Ministry of Energy and Mineral Development highlighted that before the waiver, the cost was Shs 13.83 and after the waiver, it went down to 10.62 before the refinancing. The Ministry of Energy and Mineral Development informed the committee that the tariff for Bujagali in 2018 was US cents 13.83 per kWh and it was one of the most significant contributors to the high-levelised tariff. This was set to increase to US cents 14.23 in 2022. Remember that was one of the justifications given for us to extend the tax waiver. If we did not, the tariff was going to increase. In the interest of time, allow me to go to the observations on page 23. The committee observes that: (i) Even with the Government intervention of the tax waiver on BEL, the operations and the refinancing of the Bujagali Hydropower Plant, the current tariff of US cents 8.30 per kWh is still over and above the target of US cents 5 per kWh. Remember the Government has been saying the target should be 5 per kWh so, the CIT reduced by 3.2, the refinancing reduced it further but it remained at 8.3, which is much higher than the target. So, it remains costly to domestic consumers and it is deterring industrial consumers’ accelerated growth and competitiveness as electricity is the major factor of production. (ii) In the audited accounts of BEL, the operating revenue consists of taxes, operation, maintenance costs and miscellaneous charges. These were estimated and included in the capacity payment charge and were excessive, which led to operating revenue. This, in effect, would have been a refund to the Government of Uganda as an excess payment vis-à-vis the actual. Therefore, the Corporation Tax purported to be on this revenue is taxing Government money which should not have been the case if the refund was done. (iii) The significant cost driver is the uncapped/ unregulated dividend payouts to BEL shareholders. The retained earnings, an income to BEL, should have been subjected to tax and the effect would be net of tax instead of gross payments. Therefore, the CIT in the formula should

Yes. (ix) Even with the Government intervention of the tax waiver on Bujagali Energy Limited and the refinancing of Bujagali Hydropower Plant, the current tariff (of US cents 8.3), is still over and above the target of US cents 5.5 per kilowatt. The capacitor charge of US cents 8.3 remains costly and it is deterring consumers and industrial consumers from accelerated growth and competitiveness. Recommendations i) The committee recommends that the Auditor-General should audit Bujagali Energy Limited as per the National Audit Act, given that Government of Uganda is a shareholder in the project. Specifically, the committee strongly recommends that the Auditor-General should undertake a value-for-money audit on Bujagali to establish the actual effects of the cost drivers, because all these charges we have talked about are assumed underestimated. If there is no audit by Government, this becomes a problem. ii) Colleagues, I think you will appreciate that even as we go into the oil sector, this is the biggest problem we are going to have. If you have someone inflating costs and they are not being audited to establish the actual costs –

7580 AD HOC C OMMITTEE REPORT (IFC) as joint mandated lead arrangers for the proposed refinancing with Stanbic Bank as the transaction advisor which was received on 23 February 2017. The Ministries of Finance and Energy presented five financing proposals to the Cabinet: a) The Cabinet discussed and noted the budgetary requirements for reducing the end-user power price to US cents 0.071 during Financial Years 2017 to 2023. b) The Cabinet rejected the proposal to reduce the end-user power price paid by all industrial consumers to US$ 0.05 per kWh through subsidies and approved the renegotiation of the terms of the African Development Bank proposal for the Bujagali project refinancing as follows: (i) To refinance US$ 504.7 million of the existing Bujagali project debt, replacing the current project lenders with new investors; (ii) They also agreed that the African De- velopment Bank, together with oth- er development finance institutions, should make a provision of guaran- tee for repayment of the new project lenders; (iii) An interest rate of 6.25 per annum was agreed; (iv) They also agreed to a new debt service reserve account requirement amounting to US$ 26.17 million; (v) They agreed to new loan tenure of 15 years from July 2017 to June 2032. So, they extended the loan up to 2032. (vi) Issuance fees totalling US$ 38.07 million are to be paid upfront from the loan amount. So, they give you the money but remove the issuance fees of US$ 38 million. (vii) They also agreed to the existing Bujagali project loan cancellation with a loan breakage penalty cost of US$ 9 million. In a bid to reduce the power tariffs in 2018, the Minister of Finance, Planning and Economic Development informed the committee that the Government of Uganda, through the lead arrangers; International Finance Corporation (IFC) and African Development Bank (AFDB), refinanced the project through a loan to a tune of US$ 444.3 million repayable over 14 years, ending November 2032. We have put a table that highlights the approved amount, what was disbursed and the loan balances. It is important to note that whereas the approved loan was US$ 444.3 million, the amount disbursed was US$ 403.4. The difference of US$ 40.8 million could not be accounted for. If it is assumed that US$ 38.07 million was paid as issuance fees then the discrepancy of US$ 2.83 million -

Please lay. They are referred to the Committee on Agriculture, Animal Industrial and Fisheries. MINISTRY OF JUSTICE AND CONSTITUTIONAL AFFAIRS

7420 SELECT COMMITTEE REPORT ON THE STATE OF AFFAIRS IN NSSF Muhonja, 75, died in police custody, following his abduction from his cotton plantation in Katholhu, Nyakiyumbu in Kasese District. Madam Speaker, I remember you copying me in, in one of your correspondences to security, to explain the circumstances surrounding his death. As the trend has always been, he was bundled into a drone van, driven to Masaka Police Station, then to Ssembabule and, later on, to the Special Investigation Unit, Kireka, where he died after two weeks. This entire time, the police found no reason to inform his family that they were holding him. Instead, after his death, they stealthily buried him. The police later claimed that Mzee Muhonja slid and fell in the bathroom, which caused his death. To the contrary, a post-mortem examination report suggests that he died of pneumonia. Before we knew it, the police went and exhumed his body from the KCCA Cemetery and handed it over to the family without following due process. We all know the nature of due process in exhuming a body, but this was never done. This means that it was a well-coordinated move by security to cause disappearance of evidence for the murder of the 75-year-old citizen. Madam Speaker, on this, we demand that the Prime Minister comes here and explains to the country the steps taken to apprehend and prosecute the people behind the killing of this citizen. The beauty is that the person who commandeered his abduction was named. His name is Maganda. We would like to know what the Government has done to prosecute all those involved in his killing and trying to hide evidence by burying him stealthily in a cemetery and, later on, trying to hide evidence of the cause of death. Madam Speaker, I will not speak a lot on the second issue of corruption in the Office of the Prime Minister since the House is undertaking inquest on this subject matter. However, I can only state that the Office of the Prime Minister is turning out to be a cursed office. I hope somebody can go and exorcise the ghosts of corruption in that office. We shall debate more when the report of the House comes here. The second last issue, Madam Speaker, is that on 8 February 2023, NEMA instituted express penalties in respect of various environmental breaches, ranging between Shs 3 million and Shs 100 million. The fines are not only unrealistic, but also inequitable and, therefore, should be clarified, at least, for the benefit of the citizens. We recognise the fact that there is a huge negative impact of improper waste management on the ecosystem. We observe that the express penalty scheme was drafted in haste. We request that the minister for environment comes to the House to explain the cascading nature and hierarchy of these penalties because as Parliament, we are the best educators of our citizenry. Therefore, we need to understand how the ministry came up with these penalties and the figures that look arbitrary and the way they were fixed. Madam Speaker, two weeks ago, Senior Health Officers (SHOs) laid down their tools – we all know what happened. We demand that the Minister of Health explains circumstances under which these public servants stopped working and caused suffering in our health facilities. The minister should be able to explain how many people lost their lives as a result of that industrial action – which is legitimate in the first place – and who caused the delay in meeting the Government’s part of the bargain. They laid down their tools because of the Government supplying them air and promising them lies overtime. We want to know who we should blame and who should be hanged for that action of not paying the salary promised and on the roll? This is so that it does not happen again in future. Madam Speaker, we need to be very careful and not allow ministers – and the Government in general – to get away with this kind of negligence. While we blame health workers for industrial action, somebody responsible for their action must come and explain whether they slept on duty so that we can know what to do with them. The beauty is that this House is very warm for action on ministers sleeping on [Mr Mpuuga] STATEMENT

7440 SELECT COMMITTEE REPORT ON THE STATE OF AFFAIRS IN NSSF to the Ministry of Gender, Labour and Social Development. On the same page 55, Annex T, the committee extracted only a wrong section from my famous 19-page letter, which was discussing issues raised in a paper presented by Prof. Eria Hisali of Makerere University during the Board meeting at Kapeeka Industrial Park, where we had gone on a study tour – (Interjection)- The paper presented by Prof. Hisali on the need to prioritise labour issues in the Fund activities is what was quoted. The committee deliberately refused to quote the paragraph in the same letter addressing the issue of Shs 6 billion, which referred extensively for what the money is supposed to do. Madam Speaker, again, I request the Clerk through, you, to display for me Annexes D, E, and P and scroll to page 13 so that Members can see what my letter was talking about regarding Shs 6 billion. It is a request, Madam Speaker.

7444 SELECT COMMITTEE REPORT ON THE STATE OF AFFAIRS IN NSSF compliance department should be investigated because companies that are not complying with NSSF are paying PAYE and the NSSF compliance department is not doing its work. This is what the Shs 6 billion is meant to do. b) By 31 December 2021, the data from NSSF showed that 420 cases were reported by whistle-blowers, who were reporting non- compliant employers. c) By 17 January 2022, 213 cases at the Magistrates Court alone were on Shs 200 billion that had not been remitted to the Fund because of noncompliance. d) Over 20 cases by employees are in court against NSSF seeking recovery of their money, which had not been remitted by the employers. This is a compliance matter. e) Only 48 per cent of employers in the Fund have five or more employees that fall under the old law. Therefore, the new law is supposed to target 52 per cent of employers, far higher than the one under the old law. f) The informal sector accounts for 75 per cent of the total workforce. For that reason, the new law was enacted to target and incorporate informal workers and employers to remit their contributions and conduct registration. This is the law that this Parliament enacted, the President assented to in February 2022 and I am supposed to implement it. Am I supposed to ask Hon. Jimmy Akena to give me money to implement this law? (Laughter) Honourable members, the proposal contained in the now controversial Shs 6 billion was to address the new law, which is to be implemented in partnership with stakeholders to support us in driving and scaling up communication between employers and employees. Who are the partners that we want to partner with? a) Uganda Revenue Authority – and I am glad that the committee has indicated that the PAYE with URA does not correspond with NSSF. I had already indicated it – that ensure that URA and NSSF work together. b) Uganda Investment Authority – Uganda Investment Authority has industrial parks. Members who represent areas where there are industrial parks will agree with me that most of them do not have contracts, which includes NSSF contributions. They do not contribute for those employees. In the committee’s report, one of the activities was to go to each industrial park and plantations – coffee plantations, tea plantations and sugarcane plantations – and register those workers on site so that the matter of a suspense account of Shs 57 billion, where employers send workers’ money without their names and lists cannot arise. I instructed, under that money, for them to come up with an online system that will track the employee from his or her place of work to his or her NSSF account. That is what I had proposed. In this, we want to work with Uganda Investment Authority and the Government MDAs. Madam Speaker, registration of businesses is by URSB. We need to know the registered businesses. With my suggestion, they went ahead and signed a cooperation with the police because the police is in charge of the security agencies. We have agreed with the police that before we renew, you should bring a certificate from NSSF. I request you, Members to support us in this. We want to move - we went to the Federation of Uganda Employers, labour unions, the Private Sector Foundation, the Uganda Chamber of Commerce and the Uganda Manufacturers Association. This was aimed at coordinating, sensitising and creating awareness and building consensus on implementation, compliance and enforcement of the NSSF Act. None of these activities had any personal benefits to me. In fact, judging from the committee report, the strategy to be implemented by the Shs 6 billion is a necessity. For example recommendation 21, page 148,

7445 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 9 MARCH 2023 the committee recommends lifestyle audit on the entire department of compliance because defaulting companies exempted are suspicious and NSSF contributions are inconsistent with the Pay As You Earn of (PAYE) and URA. I further proposed activities under the Shs 6 billion to conduct massive onsite registration of workers to set up an online system to track workers’ NSSF contribution until it has reached their accounts to avoid workers money being kept illegally in suspense account. The committee acknowledges under recommendation No. 22 page on 148 that the entire department of compliance be investigated by the IGG. Honourable members, note that opposition to the Shs 6 billion was to block open registration in industrial parks because the former managing director was protecting a number of companies who are contributing less than 30 per cent of the workers they employ. The ongoing investigation will shock many people. Return of NSSF to the Ministry of Finance, Planning and Economic Development The report recommends that the Fund be returned to the Ministry of Finance, Planning and Economic Development due to issues arising from dual supervision. Honourable members, the gender ministry upholds the interests of workers and labourers; your sons and daughters toiling in the fields and those who have retired and should be taken care of thereafter. For avoidance of doubt, the reason for this investigation is the oversight exercise by my ministry. I queried the operating budget including bonuses, which the committee has indicated in its report. I queried flying 85 staff to Dubai for team building, and the committee agreed with me on page 145. I queried expenditure on the suspense account and how it is being abused. The committee agreed with me on page 146, item 16. I queried non-compliance which has resulted to uncollected Shs 200 billion by NSSF and dubious exemption to several companies. The committee agreed with me on page 146, recommendations 17. I deferred the appointment of the former managing director for allegations of receiving kickbacks and unlisted companies through which such monies were passed including alleged offshore banks for investigation by the IGG. On page 149, recommendation No.25, the committee makes similar recommendation. I raised the issue of inflated costs of housing estates constructed by NSSF in my letter for deferral, the committee makes similar recommendations on page 149, recommendation No. 26. Rejecting Shs 400 billion for purchasing land which had no value On page 17, the committee faults me for rejecting a budget of Shs 400 billion-

Okay. My letter proceeds to say, “I note your explanation under expenditure on voluntary staff retirement aimed at reorganisation to align NSSF with a new business model. Some of the workers have petitioned me complaining that management intends to conduct restructuring that will force them to retire. Please provide me with a clear explanation on the criteria approved by the Board to implement the restructuring programme. Finally, the leadership of the Judiciary has notified me of the plan by the Fund to construct courts for the Judiciary. I take note that we have a specialised court for labour matters; the industrial court. I would like you to provide me with a clear rationale for this arrangement before any funds are spent on this project. Accept, Chairman, the assurance of my highest consideration of your leadership to steer the Fund. Cc: the Minister of Finance, Planning and Economic Development, the Minister of State for Labour and Industrial Relations, the Permanent Secretary of the Ministry of Gender, Labour and Social Development, Permanent Secretary and Secretary to Treasury and the Managing Director NSSF.” It is this letter that approved the budget and it is this instrument that NSSF is operating under. I have stated the Shs 6 billion and its activities as approved in the budget. I beg to –

The conclusion of my submission is that when they came to me and said this is “corporate social investment”, I told them, “I had already written to you earlier that if there is any corporate social responsibility, go to the industrial park and put it in the SACCO.” It is in one of the letters I submitted to the committee where I was directing that they should look for a SACCO of contributing members because of COVID-19. “Even if you put Shs 10 million per SACCO, at least it is returning to the people who save with the Fund.” When they came to me, I instructed them: “If this is a new term, I do not know the terminology of social corporate investment. Bring the guidelines before you allocate the money, including putting mine in areas of taking it to the SACCOs of the workers in industrial parks or plantations,” because I had visited. By the way, “corporate social responsibility” is not a bad issue. I have a hospital that has been built under corporate social responsibility by Karuma Hydro Power worth more than US$ 2 million in my constituency. So, it is a corporate matter for most organisations. However, I think here it was about how it was utilised and the fact that it was being diverted for something else. The other one of the Shs 6 billion, majorly the question requires the Attorney-General’s interpretation – (Interjections) Yes, because people are querying it. There are people who are saying, “Does the minister appropriate or should it come to Parliament?”

7222 THE PHYSICAL ACTIVITY AND SPORTS BILL, 2022 to re-prioritise funds allocated for development of the National Roads Network was discussed and Cabinet directed that emphasis be placed on the maintenance of the existing paved and critical unpaved National Roads Network, including critical industrial park roads and District, Urban and Community Access Roads, commonly known as DUCAR. This followed an observation that funding for national roads maintenance has been insufficient over the years despite an increase in stock of the paved road network. Therefore, the road network gains in upgrading and development of several roads across the country are likely to be lost in the short term as seen in the increased number of paved roads currently in poor condition, resulting in a huge maintenance backlog if adequate resources are not committed for maintenance. The National Roads Network comprises 21,120 kilometres in total length out of which 5,878.5, which is only 28 per cent, is paved standard and 15,241, which is 72 per cent, is unpaved. As at July 2022, the condition of the paved national roads in fair and poor condition stood at 21 per cent – that is 1,235 kilometres – which indicated a decline from 17 per cent in 2021. At the same time, the unpaved national roads were generally fair, with a percentage of the network in poor categories standing at 11 per cent as compared to 18 per cent in 2021. Due to the long rainy season experienced in the country since August last year to date, the condition of the national roads continues to deteriorate and the kilometres of paved and unpaved network in fair and poor condition is likely to increase significantly. This has further been accelerated by delayed maintenance interventions due to budget suppressions which we suffered in Financial Year 2021/2022 and the inadequate release of budget funds, especially in quarter one of Financial Year 2020/2023. The sections below provide details of disaggregated commitments on on-going upgrading and maintenance projects, maintenance backlog and requirements for the next three years. Major maintenance interventions The following terms are used in road development and maintenance – and the explanations are as below: Periodic maintenance Periodic maintenance involves all maintenance works carried out on a road section after intervals of several years; the norm for paved roads being at intervals of four to seven years depending on the growth in traffic volume and action on environment and weather. The actual frequency of intervention is further determined using the asset management system, which we are developing within the Uganda National Roads Authority (UNRA). Typical periodic maintenance works on paved roads include thin bituminous overlays, surface resealing, shoulder repairs/reinstatement, road marking and reinstatement of road signs. Road rehabilitation Rehabilitation includes activities that restore the original condition of the road through relatively extensive works like pavement layer reconstruction, mill and replace, reshaping of the cross-section, reconstruction of shoulders, drainage works and thick overlays – I gave an example of Kampala-Jinja Road and soon we shall be looking at Kampala—Masaka Road. The frequency of intervention depends on the traffic volume and the state of road deterioration. Intervals of rehabilitation interventions are expected to range from 10 to 15 years. However, where available, the frequency is, again, determined by the asset management system. [Gen. Katumba] MINISTERIAL STATEMENT

Thank you very much, Madam Speaker. When Government is involved in a crime of industrial scale, its ability to deliver any service is curtailed. It is the reason the ministers mentioned in the mabaati are hiding. We will abide by the two weeks’ time you have spoken about in your communication, Madam Speaker, but we need to find interim measures. If the entire Cabinet - from the Prime Minister - is involved in that crime of disappearance of iron sheets for Karamoja, then that Government cannot come here and speak. My suggestion, Madam Speaker, is that you suspend Parliament for two weeks so that

7182 THE PHYSICAL ACTIVITY AND SPORTS BILL, 2022 [Mr Ssemujju] the report comes and then we deal with that industrial scale problem. I am imagining – will the Prime Minister or her deputies stand here and address Parliament? I want to implore you, Madam Speaker, that we will not die if you suspend Parliament for two weeks. And the first business of Parliament will be to discuss the safety and disappearance of the iron sheets and goats for Karamoja. Madam Speaker, I plead with you.

7159 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 2 FEBRUARY 2023 Mr Speaker, No.6 was a question from Hon. Lillian Aber, the Woman Representative, Kitgum District. Her point was that on Friday, 27 January 2023, the Uganda National Examinations Board (UNEB) released the Primary Leaving Examinations (PLE) results for the academic year 2022. A total of 117,953 candidates did not get the required grades to join secondary education. Among them were 97,109 candidates who were ungraded and 20,844 candidates had Division X. Both groups were below 4 th grade, which is the minimum grade with which one can join secondary education. Her prayer is that I inform this august House of the Government’s plan for the 117,953 candidates. Mr Speaker, my response is that the Government introduced the free UPE programme so that the children of Uganda can attain basic education and skills. Out of the 832,654 candidates who sat PLE last year, 714,702 candidates qualified to join Senior One. A total of 117,953 did not qualify. The failure to attain the required grades is attributed to the adverse effects of the COVID-19 pandemic that forced schools to be on and off due to the lockdown. The candidates, who did not attain required grades to join secondary schools, have several options to take. The immediate option is for them to repeat the class and sit for the Primary Leaving Examinations for the Academic Year 2023. Secondly, the Government encourages the parents of the candidates who failed PLE to enrol them in other training and skilling programmes. The Government has in place the formal and non-formal vocational education systems in which they can enrol. The non-formal vocational system caters for the ungraded students and those who failed to sit are referred to as “absentees”. They enrol in a technical institute for a modular course in a programme of their choice. There are over 500 modular programmes assessed at over 300 assessment centres under the Technical and Vocational Education and Training (TVET) subsector. The programme includes Art and Design, Tailoring, Science related vocational occupations in the field of Agriculture, and technology among others. Mr Speaker, for example, a child who attains a modular transcript related to agriculture in any of the above vocational programmes qualifies to join an agriculture-related programme at a vocational school for six months, which will be equated to Primary Seven. The non-formal education assessment of candidates is by the Directorate of Industrial Training (DIT) under the Ministry of Education and Sports. A child is awarded a modular transcript, which is equivalent to a PLE certificate under the Uganda Vocational Qualifications Framework (UVQF) which is provided for under Business, Technology, Vocational Education and Training (BTVET) Act of 2008 hence, a recognised qualification under section 20 of the Act. With such a certificate, a child qualifies to join formal vocational education. It is, therefore, imperative to note that a child with a PLE certificate or a modular transcript can either join a technical school or a vocational school where they study for three years and get the Uganda Junior Technical Certificate (UJTC) equivalent to UCE. The Uganda Junior Technical Certificate is awarded by the Uganda Business and Technical Examination Board (UBTEB), a body under the Ministry of Education and Sports. At the same level, a child can obtain a level one certificate under the Uganda Vocational Qualifications Framework (UVQF) awarded by the Directorate of Industrial Training under the Ministry of Education and Sports. The child can progress and get Level 2 and 3 certificates, which come with experience. Hence, the child can either join the world of work or can proceed to a technical institute for further upgrading. With Level 3, a student can join a technical institute and study for two years, after which

6983 Wednesday, 25 January 2023 3. To evaluate the status and safety of savers’ money in the Fund; 4. To examine the extent of stakeholder engagement in decision making at the Fund; 5. To inquire into any other matters incidental thereto - She appoints the following people - if I read your name, you stand up: 1. Hon. Karim Masaba (Independent, Industrial Division, Mbale City)- Member 2. Hon. Kakembo Michael (NUP, Entebbe Municipality, Wakiso) – Member 3. Hon. Rose Nantongo Fortunate (DP, Woman Representative Kyotera) – Member 4. Hon. Laura Kanushu (NRM, PWD Representative) – Member 5. Hon. Kankunda Amos Kibwika (NRM, Rwampara County Rwampara) – Member 6. Hon. Bakkabulindi Charles (NRM, Workers Representative) – Member 7. Hon. Mwine Mpaka Rwamirama (NRM, Mbarara South Division, Mbarara City) – Chairperson.” They are supposed to report back within one month. I am told the party whips were consulted; so, that is it on that point. IN THE PARLIAMENT OF UGANDA Official Report of the Proceedings of Parliament SECOND SESSION - 7TH SITTING - THIRD MEETING Parliament met at 2.15 p.m. in Parliament House, Kampala. PRAYERS (The Deputy Speaker, Mr Thomas Tayebwa, in the Chair.) The House was called to order. COMMUNICATION FROM THE CHAIR

7015 THE ELEVENTH PARLIAMENT OF UGANDA WEDNESDAY, 25 JANUARY 2023 4.2 Resource envelope Members, you will know that the preliminary resource envelope of Financial Year 2023/2024 is projected at Shs 49,988.7 billion, compared to Shs 48,130.7 billion for Financial Year 2022/2023. This reflects an increase of Shs 1,858.0 billion. It should be, however, noted that whereas the resource envelope has increased by Shs 1,858 billion, the discretionary resource envelope reduced by Shs 2,533 billion due to the projected increase in interest obligations and obligation to settle Bank of Uganda borrowing. Much as it has increased, the resource available for expenditure has reduced. Honourable members, you can read that summary of the resource envelope in Table 10 up to 11. Then, when you get to Table 11 – the summary of aggregate expenditure composition for the Financial Year 2022/2023 is there. Expenditure categories are all in that table. Policy observations and recommendations 1. Poverty and inequality We have noted that these remain critical development challenges for the country. Here, we recommend that there is need to strike a balance between infrastructure and human capital development, as well as re-engage development partners especially under the programme of human capital development. Investment in social sectors especially health, education and social protection have a direct impact on poverty and income equality. We propose that Government should focus on that. Public Investment Management (PIM) There is a recommendation that: a) There is need to undertake project due diligence through rigorous feasibility assessments to gauge the viability of the projects. This will ensure that projects are structured, commercially viable and will provide value for money; b) Government undertakes real-time monitoring of development projects and bi-annual monitoring reports are presented to Parliament to enhance oversight of the project implementation; c) Government develops a comprehensive legal framework on public investment management; d) Government fast-tracks the development of a policy on acquisition of right-of-way and the corridors for the development of infrastructure to ease planning and avoid delays in infrastructure development; e) Government sequences projects with priority given to those generating a big gross dividend; f) Funding/releases to projects whose implementation is off-track should be suspended and responsible officers apprehended; and g) There is need to further review Government’s entire project profile in order to assess the projects, which should exit the project investment plan. Projects that are not performing should be stopped so that the funds can be released for emerging priorities in the mineral, manufacturing and tourism sectors, and development of industrial park infrastructure, petroleum sector, among others. NDPIII Core Projects There is a statement on that. We recommend that: a) There is a critical need to scale up revenue mobilisation to fund these core projects; b) In order to benefit from the PPP financing, given its complexity, there is need to enhance skills development in project financing, legal provision for contracts and contracts monitoring based on outcomes. PPPs organised by communities should also be encouraged by Government; and

The committee observed that the collapse of the contractors derailed Uganda’s journey towards the achievement of the Sustainable Development Goals (SDG) 1, 8 and 9 as well as contradicting the objectives of Vision 2040 and NDP III. SDG 1 advocates for no poverty by 2030 and SDG 8 for decent work and economic growth within the same period. The collapse of contractors leaves some of them without sources of income, indebted and their former employees jobless. This predisposes both categories of people to poverty. The collapse of the contractors also jeopardises Uganda’s realisation of SDG 9, which advocates for industrial innovation and infrastructural development by 2030. The fact is that the contractors are unable to deliver on expected contracts and infrastructural development is delayed. The committee recommended that Uganda should at all times be seen to be committed to attaining the SDGs to which it is a signatory and achieving its objective in Vision 2040 and NDP III. In conclusion, the committee noted that the delay in the clearance of the certificate and invoices was caused majorly by the underperformance of revenue collection resulting from the effect of the COVID-19 pandemic which led to budget suppression in various votes.

6851 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 19 JANUARY 2023 than five employees as not covered under the old law. 3. I also asked them to come up with an initiative to drive mandatory registration by undertaking onsite registration in all industrial parks. Madam Speaker, when I came to office, the first thing I did was to visit all the industrial parks. I visited plantations and road construction sites. I want the committee to go there and see how workers are going to cry before you in those industrial parks; men sitting and crying in front of me thus; “my contributions are not being remitted yet they have been deducted.” I asked the board to come up with a strategy to drive that registration so that we are able to capture these other 48 percent that is not on our system. 4. Statistics from the Uganda Bureau of Statistics Report, 2021 indicate that the total labour force in Uganda now stands at between 15 to 19 million workers. We need to tap into this constituency so that in the new benefit under the NSSF, they can be registered. 5. I asked the board to follow up with enforcement in case of defaulting entities as per section 14 of the Act. 6. I asked them to strengthen collaboration with other stakeholders to support us in driving and scaling up communication. Some of the partnerships that we have, which we want to scale up are with URA and Uganda Investment Authority because they license the investors and are in charge of industrial parks. We also want to partner with other Government MDAs to enforce the non-registration of businesses without compliance certificates. The Act actually says that if you have a license, you are going to renew it. If you do not have a compliance certificate from NSSF, you should not be renewed. We want to now partner with the police because they are the ones who do a lot of work with the security companies; Uganda Investment Authority issues investment licenses, URBS and UNBS. We want to partner with the Federation of Uganda Employers, labour unions, Private Sector Foundation, Uganda Chamber of Commerce, Uganda Manufacturers Association; for coordinating, sensitising and creating awareness and consensus building on implementation, compliance and enforcement. Madam Speaker, you will note that the new voluntary contribution scheme cannot just be thrown into the face of the private sector; you must engage them and build consensus on what products you are going to give a private person. If I am going to ask you to voluntarily save with NSSF and it is not mandatory, I should give you a product and probably say, “You can save with NSSF but if you want to borrow from your savings, you can borrow up to 50 per cent. However, the rest remains for retirement.” Therefore, we want a product that is acceptable. We do not want to force it because the law says it is a voluntary contribution. That is why we need all these people to work with us. Honourable colleagues, these strategic initiatives were considered by the board. The chairman wrote to me on 10 June 2022 indicating how the activities have been budgeted for. I have given all the attachments on annex 1 and it shows the letter from the chairman of the board talking about the initiatives and the areas that we can start with in this financial year. On 25 November 2022, the chairman called a board meeting at Serena Hotel and detailed corresponding activities for which an allocation of Shs 6 billion was presented - and I think this is where the contention is. The board, after I directed them, came with the initiative. The management was tasked

Madam Speaker, suffice to note is to clarify that the meeting I referred to of the board’s visit to meet Gen. Salim Saleh, the Coordinator, Operation Wealth Creation in Kapeeka on 6 December 2022 had an intention of establishing how a private industrial park with a big number of workers can inform strategies for the Fund to enroll these as members and contributors of NSSF as well as on other strategic issues in line with the mandate of the Fund. I want to confirm that Kapeeka Industrial Park has already given us support to go and register to undertake that. Safety of member savings As I had earlier stated, the ministry of gender is in charge of the supervision and operational matters, while safety of savings and investments is the mandate of the ministry of finance. In our various engagements with the management of the Fund and during our recent meeting with the Committee on Finance, Planning and Economic Development, it has been repeatedly stated that members’ money is safe and invested as clarified hereunder: 1. The operations of the Fund are based on the following business model; i) Funds are collected from the employees and the employers, and that is the mandate of ministry of gender; ii) Funds are invested – this is the mandate of ministry of finance; and iii) Funds are then paid back to beneficiaries - that is operational, which is the ministry of gender. 2. Supporting the business model are three rings of defence; legal management, risk management and internal audit, which is assurance management. These rings of defence are to ensure that the operations of the Fund are managed within an environment that minimises risk to workers’ savings. On an overall basis, all three defences are very functional at the Fund. I know that the various control oversight levels have continued to work normally. Management is being held accountable. The reports from the control functions still report to an independent oversight committee of the board and equally URBRA as a regulator is mandated to oversee the investment and other portfolios. I want to comment on each aspect of the business model specifically as it pertains to the safety of the members’ funds. a) Collection of contributions, which is my mandate. I am glad to report that collections are going on normally. Amazingly, during the month of December, the Fund collected approximately Shs 148 billion. This has been the highest monthly collection for the Fund ever, in our records. This brought the total collections for the six months - that is July to December - ending 2022, to Shs 786 billion compared to the Shs 651 billion. That is 21 per cent higher than the same period in the previous year. This increased contribution is evidence that there is trust that savers have in continuing to contribute to the Fund. b) Investment The Fund invests in three main classes of assets; fixed income, equity (stock) and real estate. The fixed income portfolio is invested in government bonds, which are the safest investment instruments for they are guaranteed by the sovereign Government. As of the end of December 2022, fixed income constituted 78 per cent of the investment portfolio. Equities constituted 15 per cent of the portfolio.

Thank you, colleague. Madam Speaker, as I summarise, Pader District is one of the districts that have given out land for the construction of an industrial park. With the poor road network, I am afraid investors are not going to take on these industrial parks. Honourable minister, please, I continue appealing to you to take this seriously. I thank you, Madam Speaker.

6756 STANDING COMMITTEE REPORT THE MINISTER OF STATE FOR GENDER, LABOUR AND SOCIAL DEVELOPMENT (LABOUR, EMPLOYMENT AND INDUSTRIAL RELATIONS) (Mr Charles Engola): Thank you, Madam Speaker. Your directives are very good, but should not be centred on only two schools in the country. I think the committee –

Thank you, my senior colleague, honourable minister Musasizi, for giving me chance to give you information. What URA has done is to have the resources to buy these machines. Therefore, they have sent businessmen to industrial area - there are certain people who have imported these machines. They only regulate the price of the machine, which is about Shs 1.1 million - which is true - but the machine comes with other costs. It comes with costs of software, an expert to install the

Mr Speaker, the recommendations are that; i) The ERA should ensure that tariffs are competitive and fair for the consumers; ii) A cooking tariff be introduced for the off- grid schemes as is the case for Umeme, to reduce reliance on biomass for cooking; and iii) The lifeline units for WENRECO should be increased from 8KWH to 15KWH to align them to Umeme rates so as to encourage consumption. Health, safety and environment concerns On health, safety and environment concerns at the Electro-Maxx generation facility, the committee recommends that: i) An appropriate industrial floor that is safe to use in generation facilities, is resistant to abrasion and can manage the loads and traffic on site be installed in the switching station; ii) WENRECO should decommission its abandoned generators as per the decommissioning plan that was submitted to the National Environment Management Authority; iii) The floors at the generators should be fixed and proofed to prevent oil spillages; iv) Additionally, an interceptor to manage oil spillages and run-offs on site should be constructed; v) Appropriate number of sanitary facilities should be availed expeditiously to address the needs of both female and male workers and visitors on site; and vi) Monitoring and maintenance of the plant facilities should, routinely, be carried out to ensure that they are in good working conditions. Fragmented planning in the sector Mr Speaker, on fragmented planning in the sector, the committee recommends that: i) The Ministry of Energy and Mineral Development should establish or strengthen the planning function for electricity generation, transmission and distribution; ii) The Minister of Energy should not enter into new agreements for generation, transmission and distribution until the energy policy and energy Bills are tabled and approved by Parliament; iii) In future, Parliament should ensure that approval of funding for the development of generation projects should be done simultaneously with their transmission components; and iv) The Government of Uganda should stop negotiating power purchase agreements with deemed energy clauses. [Dr Otaala] SECTORAL COMMITTEE REPORT

6607 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 6 DECEMBER 2022 You know, we have been hearing this, that there are plans being cooked to supply solar power to West Nile. I think our problem of power should not be seen as a market for people to do business. We do not want that solar there; we want reliable, industrial power because we have been frustrated on this issue. The proximity of West Nile to South Sudan and the Democratic Republic of Congo provides reliable development opportunities. We can only realise these opportunities when there is reliable industrial power in West Nile, not just solar. Solar should never be in any picture in this. If it is there, it must go to the deep rural areas, not to supplement energy. For a long time, we have been longing for power that can bring about development in West Nile. Government’s emphasis, as of now, is on agricultural chain development and also value addition. If we do not put this power in place that can help us and we begin talking about solar and the rest, when shall West Nile develop? Thank you very much.

6610 ACTION TAKEN REPORT ON THE RESOLUTIONS OF THE 11 TH PARLIAMENT that is the way to go. That is not another country; we are in one country. Therefore, I am glad that that has been done, but also to bring to the attention of the minister that while we talk about power in the West Nile, some of our investors, manufacturers, and people with industries around the Namanve are complaining about power fluctuations; they cannot operate, some of them have had to shut down. Some think I am still in the ministry. They keep sending me messages yet I am no longer there. So, honourable minister, please, also attend to our investors and those industrial parks and ensure there is stable power in those areas. Thank you, Mr Speaker.

Thank you very much, Mr Speaker. There is something I need to clarify with this House and my friends in West Nile. The Government is taking power to West Nile and West Nile is going to be connected to the grid. But we need to understand that when power is taken there, the 132KV has to be dropped down to 33KV; we are now talking about substations to be distributed in areas. From 33KV, it has to be dropped down to 11KV. Now from 11KV, that is when we are going to do the distribution. Now, that is when we can say that West Nile is connected. The question, which is going to be asked in March will be: the Government has connected us, but we do not see power. This is because they do not know the process of distributing power to the houses or the industrial areas. So, Members from West Nile, probably, the minister should come up and clarify when the companies are going to start such that these people realise power in their areas. Thank you.

6568 ACTION T A K E N R E P O R T O N T HE R E S O L U T IONS O F T HE 1 1 T H P A R L IAMENT investigating these allegations and action will be taken after the investigations. The value for audit on the factory As I said, Madam Speaker, the Auditor-General is auditing and will take action after he has reported to Parliament accordingly. In order to grow the company and ensure that Soroti Fruit Factory meets the demand of the farmers, all shareholders should make their fair contribution towards re-capitalisation and administration costs of the company. Capital restructuring of this factory has been approved by the UDC board and mobilisation for more capitalisation is being done by the shareholders. We should incorporate corporate governance in the running of the factory affairs. This has been done because now the new board will be in place to separate management from the board issues. Securing a fully-fledged packaging line Madam Speaker, Parliament resolved that we should procure a fully mechanised packaging line to improve the efficiency and effectiveness of production in the factory. Action taken We are grateful that a supplementary budget of Shs 5.5 billion was provided by this House to cater for the packaging process. The process of procurement to acquire a new line is on-going. In addition, more land has been acquired from Uganda Investment Authority in the Soroti Industrial and Business Park for the expansion plan. Therefore, once the procurement is done, we will install this packaging line and expand the factory to be able to accommodate increased production by the people of Teso. The last resolution was that the officers that are said to have misappropriated funds, which were appropriated and invested by UDC in the Soroti Fruit Factory step aside as investigations are carried out. If they are found not guilty, they can be reinstated to their offices. Mr Jude Matsiko has not been staff since 2016, but more importantly, the CEO, who is the key manager of the factory, has stepped down as investigations go on. Therefore, these are the actions that we have taken on the resolutions of this House. I beg to submit.

Can I know the status of that Bill? Two, a motion to withdraw a request to borrow €96,270,833 which was equivalent to $108 million from Industrial and Commercial Bank of China to finance Masindi-Biso-Kabale. Can I know the status of that? Three, the report of the Supplementary Schedule No.1 of 2021 – the money that was provided for your ministry. Can we know what that supplementary did and how much it covered? The report on the National Budget Framework 2022/2023, 2026/2027 – how much was released to you, how much have you received and what has it done? Are we together, Hon. Fred? The report on the operations of Civil Aviation Authority - you saw what was in the papers and everywhere. Can we know the status? A report on the operations of Uganda Railways Corporation – can we know it? A report on the Ministerial Policy Statement and Budget Estimates for 2023/2024 on Physical Infrastructure sector – can we also know that, on top of what you are going to present? That is what I saw that you have left out. (Applause)

Thank you very much, Madam Speaker. I beg to move a motion for a resolu- tion of Parliament to authorise Government to borrow up to SDR 237.7 million, equivalent to $ 331.5 million and also receive a grant of up to SDR 198.2 million. That is equivalent to $276.5 million in the form of grants from the IDA of the World Bank Group to finance the EASP Project. The objective of this project is to increase access to electricity for households, commercial enterprises, industrial parks and public institutions from 19 per cent currently to 44 per cent by 2027 and increase the share of clean energy usage for cooking from 15 per cent to 40 per cent by 2027. The location and beneficiaries of this project The project’s geographical focus is national and it will directly benefit households, commercial enterprises, including minerals and mining enterprises, public institutions and industrial parks with access to energy and clean cooking solutions. The project will also support refugees and their host communities with both grid and off grid technologies. The key project results areas include: i) About 1,073,500 new on-grid electricity connections; the estimated number of connections per district is included in the annex, which we shall present later. ii) About 150,000 off-grid new electricity connections made, of which 27,000 are in refugee host districts. iii) Based on the above connection targets, about five million project beneficiaries will be provided with access to electricity

Madam Speaker, beside your home, if you take the route going to Industrial Area, you will wonder whether Kampala is a city or not. Money has often been allocated to repair those roads, but they never create a drainage line where water can pass.

6208 PRIME MINISTER’S TIME under the wise leadership of the First Lady and the Minister of Education and Sports, the Government secured the certificate of title for the property donated to John Akii-Bua in 1972. The details of the property are as follows: The district is Mengo, the county is Kibuga, the block number is 29, the plots are 1708 and 1709. Therefore, this land title was handed over to the administrator of the estate during the President’s recognition of the Ugandan athletes in October this year at State House. The second question came from Hon. Ephraim Biraaro, Member of Parliament Buhweju West. He says that Buhweju, like other districts in Uganda, is endowed with several minerals, most prominently gold. That our people have been rendered vulnerable to ill health as a result of chemicals used by commercial gold miners. It is said that these gold miners who use industrial scale methods and technology apply mercury in the running streams, in order to compress the gold powder for their benefit, which mercury is known as a hazardous chemical to humans, animals and all aquatic life. Water, which flows from gold mines in Njeru, Ngaju, Kagorogoro, Bihanga, Nyakitaraka and several other places, is shared by the communities downstream to their detriment. The big commercial gold miners seem to have no regard for property rights of the natives. They enter and excavate any piece of land at will. His prayers: 1. That the ministries in charge of minerals and environment should go on ground in Buhweju to assess the dangers posed by chemicals, and take appropriate action. 2. The ministry in charge of licensing commercial miners should go on the ground and tame the impact on the population by their agents. 3. The Committee on Natural Resources, which is within your powers, Madam Speaker, should make a visit to Buhweju and assess the impact of the mining activities on the community. Madam Speaker, the Ministry of Energy and Mineral Development has instituted policies, reviewed and enacted laws to guide the development of the sector, for instance, the recently assented to Mining and Mineral Act, 2022. This will ensure sustainable socio- economic transformation of the country. The ministry is continuously engaging with all stakeholders including Ministries, Departments and Agencies and local governments to ensure compliance to the Mining and Minerals Act. Honourable colleagues, the ministry together with the National Environmental Management Authority is committed to the implementation of the Minamata Convention on Mercury, where Uganda is a signatory. The Convention on Mercury is the most recent global agreement on environment and health, adopted in 2013. One of the objectives of the convention is to protect human health and the environment from pollutants and releases of mercury and its compounds. Government is promoting the use of environmentally-friendly alternatives to mercury such as the use of borax in processing of gold. Madam Speaker and colleagues, the law provides penalties for the use of mercury and other hazardous chemicals in the mining sector. Like I said when I was starting, I request you to allow the Committee on Natural Resources to conduct an oversight visit as per the Member’s request. Hon. Veronica Nanyondo, Bukomansimbi district woman MP. She said, “I rise on a matter concerning the readiness by Government to implement the new lower secondary school curriculum. Recently, Government, through Ministry of Education and Sports and the National Curriculum Development Centre, introduced a new thematic-based lower secondary school curriculum that will be implemented when schools reopen in January, 2023.”

6209 THE ELEVENTH PARLIAMENT OF UGANDA THURSDAY, 10 NOVEMBER 2022 According to her, this has been an issue of debate – even before Parliament – to the extent that we considered halting the implementation of the new curriculum. Questions arose as to whether the new curriculum will deliver the envisaged outcomes and overcome the challenges faced by the existing curriculum. It is also not yet clear if all stakeholders were involved in the process of developing the new curriculum are the key determinants to its successful implementation. Her prayer is: “Rt Hon. Prime Minister, it is vital that teachers, parents, students and all stakeholders who together support the education sector are on the same page in regard to the new curriculum.” Madam Speaker, my response is that the implementation of the new lower secondary curriculum started in February 2020 and it is on track. The pioneers of this new lower secondary curriculum would have been in senior three but due to the COVID-19 pandemic and lockdown, they are in senior two. They are expected to sit their first assessment by the Directorate of Industrial Training on their occupational proficiency in 2023 and Uganda Certificate of Education examinations by UNEB in 2024. A total of 6,020 Government and private schools received syllabus books for the subjects offered in addition to prototype learners’ textbooks, teachers’ guides and training manuals in 2019. 30,000 secondary school teachers from both private and Government schools have been trained on the new lower secondary curriculum. I have provided the table with details of trainings and orientations of various stakeholders on the new lower secondary curriculum as you can see in the provided details. Madam Speaker, the lower secondary school curriculum is not thematic as indicated by the honourable member. It is a competency- based curriculum, which is outcome-based and learner-centred. The thematic curriculum is for the primary level and this was rolled out in 2007, starting with primary one up to primary seven in 2013. In the process of developing the new curriculum, consultations were carried out with a number of stakeholders. The Ministry of Education and Sports has continued to create awareness on the new lower secondary school curriculum through radio and TV talk shows, and presentations at different forums. The fourth question came from Hon. Isaias Johny Ssasaga, Member of Parliament Budadiri East, that the Uganda National Examinations Board is withholding exam materials for all secondary schools for the Uganda Certificate of Education and the Uganda Advanced Certificate of Education in the forthcoming exams, demanding for certificates of clearance from the Uganda National Students Association and the Uganda National Students Association and Secondary Science and Mathematics Teachers’ (SESEMAT), as contributions for their release. The Uganda National Students Association and the Secondary Science and Mathematics Teachers (SESEMAT) are demanding schools to pay all accumulated arrears for these schools, presumed collected from students’ co-funding since 2020. With the COVID-19 situation, most parents were hit hard and failed to clear school fees arrears, of which most schools waived them off. His prayer was that the Ministry of Education and Sports prevails over UNEB to release the exam materials to schools. The second one is that UNEB be cautioned not to attach either the release of materials or results of students, based on UNSA or SESEMAT dealings with schools. Madam Speaker, my response is that the Uganda National Students Association (UNSA) is an umbrella body for students in Uganda, both in Government-aided and private post-primary institutions of learning. The students’ body derives its mandate from the Education Act of 2008, which requires all schools and institutions to establish students’ councils. Collectively, these students’ councils manage and run their affairs under the UNSA constitution.

Thank you, Mr Speaker. I am a proud alumnus of Makerere University and a strong consumer of kikumi- kikumi - for those who have been there. (Laughter) The world is going into an economic revolution. The fourth industrial revolution should not leave Makerere University behind. I, therefore, implore Makerere lecturers and administrators

5886 THE UGANDA H UMAN ORGAN D ONATION AND TRANSPLANT B ILL, 2021 to engage in the struggle and strategically position themselves in the fourth industrial revolution so that Makerere is not left behind. Thank you.

Thank you, Mr Speaker. Under the current agriculture products that we have in commercial banks, the challenge for our local populace is that one cannot even have an agricultural product insured under the schemes. Mr Speaker and colleagues, the establishment of an agriculture bank, not only shall it provide appropriate technology financing, it will also provide affordable credit to our local farmers. This is a noble motion and I, therefore, stand to support it, because it will enable us to increase productivity and agro-industrial development in Uganda. I thank you, and I call upon the Minister and Government to receive it ably and ensure that it is implemented. Thank you.

Thank you, Mr Speaker. On 11 April 2022, the Ministry of Agriculture, Animal Industrial and Fisheries, declared a quarantine due to Foot and Mouth Disease in Adjumani District. After vaccination and thorough observation, the district wrote back to the ministry, but up to now, the quarantine has not yet been lifted. Why is the ministry not responding to Adjumani’s letter when our people are suffering and out of the business economy?

5679 THE ELEVENTH PARLIAMENT OF UGANDA TUESDAY, 20 SEPTEMBER 2022 in the “active deduction report” but in the “my approval report”. In other words, they are supposed to deduct because there is approval but no deductions reported. At Lira Regional Referral Hospital, the Auditor-General noted that unauthorised loan deductions amounting to Shs 190,771,403 were made from 90 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS. The committee observed that: 1. Government continues to maintain manual staff files, which are not easily moveable upon transfer of the affected staff; 2. The practice poses a risk of causing deduction without liability, thus depriving staff of their hard-earned money or funds. For instance, the accounting officer of Masaka Regional Referral Hospital had fallen prey to the said vice. This may also expose Government to litigation and in some cases, industrial action; and 3. Twenty-one employees had inconsistencies between the loan amounts in the IPPS and the active deductions. Further, the committee is cognisant of clauses 2.1.2 and 2.1.4 of the service agreement between the Government (The Ministry of Public Service) and the Uganda Consumer Lenders’ Association/ the Uganda Bankers’ Association, which require a letter of undertaking for each Government employee before making an employee reservation on the PDMS. Therefore, under the said clauses, only deductions consented to by employees, in writing, should be submitted to the Ministry of Public Service for timely monthly payroll processing or as advised by the employer/ entity. The committee recommends that: 1. Accounting officers should ensure that all loan applications are streamlined with all data being reconciled, in liaison with the PCA Management and approvals done through the PDMS; 2. The hospital management should, within two months from the adoption of this report by Parliament, seek for guidance from the Ministry of Public Service on the usage of the PCA and PDMS interface, to accurately manage their loan database. Off-budget receipts The Auditor-General reported that most of the entities received off-budget financing, which were not declared to the Permanent Secretary/ Secretary to the Treasury, and accordingly, was not appropriated by Parliament as required by Section 43(1) of the Public Finance Management Act, 2015. There was no evidence that the entities obtained guidance from the Accountant-General as required by Section 43(5) of the Public Finance Management Act, 2015. Such omissions go against the requirement of running an integrated budget and pose a risk of double financing. For example, Mbarara Regional Referral Hospital received numerous funding including Shs 4,164,571,391 delegated funds, Shs 3,575,864,122 as EGPAF/USAID Rhines of Shs 588,707,269. Although the Accounting Officer for Mbarara Regional Referral Hospital explained that the funds were for intern doctors’ allowances, isolation building plus other activities relating to TB and HIV/AIDS and that the funds were spent as per the agreed Memorandum of Understanding, they were not spent within the IFMS of Government, thus contradicting or contravening sections 36(6), 43 and 44(2) of the PFMA 2015, which require all public resources including external funding, to be paid into the Consolidated Fund and be availed through the Appropriations Act.

Mr Speaker, I raise a motion seeking leave of Parliament to introduce a Private Member’s Bill, entitled “The National Forest and Tree Planting (Amendment) Bill.” I am moving under Articles 79 and 84 of the Constitution of the Republic of Uganda, 1995 and Rules 56, 121 and 122 of the Rules of Procedure of Parliament. The motion reads: “WHEREAS Article 79 of the Constitution empowers Parliament to make laws on any matter of peace, order, development and good governance of Uganda; AND WHEREAS Article 94(b) of the Constitution and Rules 121 and 122 of the Rules of Procedure recognise the rights and the procedure of a Member to move a Private Member’s Bill; AWARE THAT the Constitution, under national Objectives And Directive Principles of State Policy, obligates the state to ensure that the utilisation of the natural resources of Uganda is managed in such a way as to meet the development and environmental needs of present and future generations of Ugandans and particularly to take all possible measures to prevent or minimise damage and destruction to land, air and water resources resulting from pollution and other causes; FURTHER AWARE that the Constitution, under National Objectives And Directive Principles of State Policy, and further obligates Government to stimulate agricultural, industrial, technological and scientific development by adopting appropriate policies and enacting enabling legislation to take appropriate steps to encourage people to grow and store adequate food, establish national food reserves, encourage and promote proper nutrition through mass education and other appropriate means in order to build a healthy state; RECOGNISING THAT the Uganda Forestry Policy of 2001 highlights the fact that Uganda has a national forest cover of forests and woodlands of approximately 4.9 million hectares, covering about 24 percent of the total land area with 1.9 million hectares of this being permanent forest cover, inclusive of forest reserve land; FURTHER RECOGNISING that the National Forestry and Tree Planting Act, 2003 grants the National Forestry and Tree Planting Authority powers to manage, maintain, control and grant utilisation licences over forest reserves and community forests; NOTING, HOWEVER, that the power of the authority to grant tree farming licences under the Act is limited only to the establishment of commercial forest plantations with defined tree species, which falls short of incorporating the practice of agrisilviculture; the practice that involves the growing of forest trees, commercial fruit trees, and grasses together with the same land at the same time; CONCERNED THAT the omission deprives the licensees and the country of the benefits of agrisilviculture, including the production of multiple products from the forest reserve lands such as commercial forest trees, fruits, fodder and forage needed for livestock, fuel wood, timber, leaf litter needed for organic for organic manure production, improvement and sustaining of the crop productivity, which increases the level of income of the farmers, improvement of the nutritive value of animal feed, due to the supply of green fodder, soil nutrient recycling, which helps to reduce chemical fertiliser purchase, improvement of the farm site ecology by reducing surface runoff, soil erosion and nutrient loss, galley formation and landslides, improvement of local microclimate and environment and enhancement of the productive capacity of the TRIBUTE TO UGANDA’S REPRESENTATIVES TO THE 22ND COMMONWEALTH GAMES, UK

Thank you, Mr Speaker. Mine is about that swampy area in Namanve. As much as the committee talked about returning the land titles, the local authorities that give permits should also be cautioned not to give permits in areas that are swampy because I do not know what we are going to do. In Namanve Industrial Park, there are hotels and these hotels are owned by some of us. Like Hon. Migereko of Jinja has a hotel in the swamp. Then Sudhir also has a hotel in a swamp. So I do not know the mechanisms we are going to use; are we going to compensate them or are we going to break down the structures? Therefore, I want the laws to be stringent for the municipalities and the local authorities also. Thank you.

We shall actually discuss that. So, on the use of solar, many households - more than 38 per cent of the households - actually are on solar electricity and we are promoting it. So, in essence, the Ministry of Energy is actually moving forward to popularise the use of sustainable energy and clean energy for applications at households and at industrial level. Thank you.

Thank you, Mr Speaker. I rise on a matter of national importance regarding six people who were strangled in Nakaseke South County. Last week, two young girls were strangled to death on their way from Namukekera Industrial Park. The following day, four more boda boda riders were also strangled to death. Residents tried to reach the nearby police stations, but they did not get the necessary assistance. The residents of Kapeeka, Semuto and Nakaseke are currently living in fear. They are still waiting for a response from the Minister of Internal Affairs or the concerned organs to ensure that at least there is order and sanity in the area. My prayer is that the Minister for Internal Affairs carries out comprehensive investigations to know what is killing these people in Nakaseke. Otherwise, people are living in fear. Lastly, it is high time Parliament looked into the welfare of our officers in uniform. When most people run to these officers for help, they claim they do not have fuel. Even their patrols do not work. Until we look into this, we shall continue experiencing a lot of insecurity in our country. I submit. Thank you.

Right Madam Speaker, this is a motion for the resolution of Parliament urging Government to harmonise and enhance the remuneration of public officers, moved under Rule 56 of the Rules of Procedure of Parliament. “WHEREAS Article 21 of the 1995 Constitution provides for equal treatment of all persons before and under the law in all spheres of political, economic, social and cultural life and in every other respect and for the enjoyment of equal protection of the law; AWARE THAT, that section 7(1)(b) of the Public Service Act 2008 mandates the Minister responsible for Public Service to receive and consider on behalf of the Government proposals for remuneration and benefits of persons whose emoluments are payable directly from the Consolidated Fund or out of monies provided by Parliament; RECALLING THAT, from 1990 Government undertook a number of reforms, including the Public Service Pay Reforms, under which the Ministry of Public Service came up with a pay policy for public officers, which the Cabinet approved in 2017, and agreed to be implemented it in a phased manner, starting in the Financial Year 2018/2019 due to the limited resources; APPRECIATING THAT, according to the implementation of the pay policy for public officers, has been ongoing in a phased manner and gradually, some categories of public officers have had their salaries enhanced; FURTHER APPRECIATING THAT, on 22 June 2018, the Government entered into a Collective Bargaining Agreement with public service labour unions, including Uganda National Teachers’ Union, which clearly indicated salary structures and pay targets for all public officers to be implemented over a five-year period; CONCERNED THAT, despite Government pay policy for public officers and subsequently a commitment under the Collective Bargaining Agreement, a section of public officers including medical doctors, nurses and teachers have had a series of industrial actions arising from the failure by the Government honour its commitment to enhance their salaries; NOTING THAT, under paragraph 2.3 of the Collective Bargaining Agreement, the parties agreed that there would be no discrimination in pay and other terms and conditions of service; AWARE THAT, on the 24 August 2021, Government announced that Cabinet had resolved to enhance the salaries of scientists, which decision is being implemented; RECOGNISING THAT, although the policy adopted by Government to pay scientists better than their arts counterparts cannot be disputed. There is a need to carefully study its implementation to ensure that it does not cause strife and division among the public service labour force and ultimately affect service delivery;