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BUSINESS LICENSING LEGAL &
ADMINISTRATIVE REFORM
STAKEHOLDERS WORKSHOP, DRAFT
REPORT
IMPERIAL ROYALE HOTEL KAMPALA
JUNE 23RD 2016
Ministry of Finance, Planning and Economic Development
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1. INTRODUCTION:In March 2011, the Hon. Minister of Finance, Planning and Economic Development appointed a high level Business Licensing Regulatory Reform Committee (BLRRC) of 13 members chaired by Hon. Gerald Ssendaula, to oversee Business Licensing reform work. The Committee’s major role is to improve the doing business environment and as such attract investments and tourists in Uganda. Overtime, surveys have been conducted, laws reviewed, meetings and interactions held, recommendations drawn and more expected until Uganda’s business environment is competitively suitable for all. Emphasis by Government is geared at easing regulatory and administrative burden in order to enhance competitiveness and innovation in the business community. The new term of Government is to ensure service delivery through these Reforms.
As a follow up on these reforms, the Ministry of Finance, Planning and Economic Development together with the Uganda Registration Services Bureau therefore organized a workshop on the 23rd of June, 2016 at the Imperial Royale hotel in Kampala. The workshop was to update stakeholders on the history of Business Licensing Reforms, review the status of implementation and impact of proposed Business Licensing Administrative and legal reforms by MDAs and agree on a way forward and expedition of the implementation process. Over 120 participants from Members of the BLRRC, MDAs, Local Government, and the Media attended the workshop and discussed the ongoing reforms. Government agencies are urged to leverage on ICT and undertake reforms so as to reduce costs, time and procedures associated with service delivery and the emphasis on Administrative reforms is to help make a difference in our communities to access public services easily and quickly. This report therefore provides the detailed discussions on Administrative reforms previously recommended and also emerging ones. The one-day meeting had 8 sessions with specific presentations followed by
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Question and Answer/Discussion Sessions. This report follows the order in which the program was administered.
1.1 Objectives of the Meeting:i. Review the status of implementation of proposed business Licensing
Administrative Reforms by MDAsii. Receive an update on legal Reforms by the consultant and MDAsiii. Review impact of implemented reforms on the cost of doing businessiv. Agree on way forward and recommendations for expediting
implementation of pending reforms
1.2 Welcome/Opening Remarks:On behalf of the Chairman, BLRRC, the Ministry of Finance, Planning and Economic Development, CICS National Coordinator gave the opening remarks and welcomed all Participants adding that Business and Investment Climate are key aspects of the new Government’s focus areas. As a key mandate thereof, policies and operations that provide opportunities and incentives for firms to invest productively, create jobs and expand the economy are key. To coordinate these reforms, the BLRRC has been working since 2011 and has a Secretariat at the Ministry of Finance, Planning and Economic Development and produced a report on ‘Sector analysis of Business Licenses in Uganda’, March, 2012 which guides implementation of these reforms. The BLR report of March 2012 was reviewed and in order to focus its recommendations agreed upon by Office of the Prime Minister, at Cabinet Level. Works of Business Licensing Reform were supported by the World Bank-IFC, PSCPII and now CEDP. He noted that with privatization and Investment components merged now, efforts will be more of regulatory in line with the new Government’s focus to improve Public Service Delivery.
The Workshop was then officially opened with emphasis on quickening processes and reduce regulatory burden and costs. He also emphasized strengthened synergies and coordination amongst the implementing MDAs
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for improved service delivery in Uganda hence a competitive business environment for the Private Sector to thrive.2. BACKGROUND TO THE BUSINSS LICENSING REFOM WORKS:The Ministry of Finance, Planning and Economic Development representative made a presentation detailing background of the Uganda License Reform program dating back as far as 2010 launch with main objective of (initial focus on) licensing and tax. This led to the birth of the Business Licensing and Regulatory reform Committee (BLRRC). The FY 2011-12 National Budget thereof, comprehensively reviewed the business related licenses as part of private sector development measures.
2.1 The main objectives of Business Licensing Reforms include;a) To ease regulatory and administrative burdens in order to enhance
competitiveness and innovation in the business sector andb) To streamline business licenses by eliminating redundant procedures,
reducing red tape and simplifying multiple licensing regimes.2.2 The BLRRC main activities include;
i. Comprehensive inventory of business licenses/permits/levies/charges/authorizations at all national and local government levels
ii. Comprehensive review of licensing laws, rules, regulations, bylaws among others
iii. Stakeholder consultations with the private sectoriv. Consultations with key government agenciesv. Review of all licenses, laws and proceduresvi. Calculation of licensing burden on businesses
2.3 The BLRC Findings were as follows;i. 766 licenses existed among 540 MDAs and Local Government.ii. 87 laws most of which were developed before the year 1991iii. There were 65 issuing agenciesiv. There was a lot of multiplicity of licenses
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v. Excessive duplication of proceduresvi. Centralization of MDA licensesvii. Excessive contact with officersviii. Use of licenses to generate revenueix. Variation in feesx. Poor management of revenue
2.4 BLRC then made the following recommendations; Eliminate licenses that serve no legitimate regulatory purpose Streamline only 294 licenses from the 766 Amalgamate some licenses especially those that serve the same purpose Reclassify some of the licenses to save on time and duplication Retain at least 418 licenses in their original form Laws and regulations were amended2.5 The implementation of these reforms had phases and these were as follows; March 2012; BLRC report was presented to the Government of Uganda June 2012; Budget pronouncements on BLR had the elimination of
business licenses, establishment of a business license e-registry June 2013; Business Licensing E-portal at URSB was launched
http://www.businesslicences.go.ug which is now informative but will later upgrade to being transactional
August 2013 cabinet approved the implementation of the recommendations
October 2013; the business regulation feedback portal at PSFU was launched
December 2013 parliament approved US$100m Competitiveness and Enterprise Development Project(CEDP) to provide resources for business registration and licensing reforms at URSB(US$10m)
January 2014; Hon. Minister of finance appointed the Business Licensing an Regulatory Reform Committee (BLRRC) to spear head the implementation of the recommendations
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June 2014; Reduction of the regulatory burden on business2.5.1 Summary of Licensing Burden on the Economy;
Inventory finding: Total compliance cost UGX 725.73bn representing 3.49% GDP. Burden per sector, in billions UGX illustrated.2.6 On-going Key Legal Reforms1
i. To amend laws affecting 307 licenses, MFPED is liaising with MDAs to develop principles to be presented to Cabinet.
ii. Drafting of amendments to regulations is also ongoing in consultation with MDAs. The next presentation will concentrate on the detail of these processes.
2.7 Challenges in implementing the BL Reforms; Coordination of all the 65 MDAs and officers at varying levels to
implement the recommended reforms
1 Details are in the presentation attached as appended at the end of this report-Legal related findings and reforms.
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Mind set of MDAs where reforms especially administrative are not given desired attention and stick to their mandate and focus on own priorities
Need for revenue collection still over riding need for licensing reform in most MDAs
2.8 Some key Recommendations;i. Implement administrative reforms e.g. client charters, sitting
arrangement to enhance transparency and process flow and strong inter connectivity of government agencies.
ii. Immediate implementation of BLRC recommendations especially on the laws and regulations.
iii. Strengthen the Regulatory Impact Assessment (RIA) mechanism.iv. Regular update of information on the E-licensing portal and fast track
the transition to a transactional portal.
3. UPDATE ON THE LEGAL REFORMS:The consultant informed the meeting that she had made progress meeting with some MDAs such as the National Council for higher Education, Transport Licensing Board among others but noted challenge in slow response by most MDAs. She encouraged MDAs to study the BLR report and recommendations since there is need to proactively amend laws in the shortest time possible for a better business environment. She also introduced the team she is working with: FPC, plus other consultants to ensure quick progress in drafting of principles together with MDAs. She informed the meeting that she had ably distributed the 2012 BLR Report to most MDAs and had already interfaced with some and drawn conclusive recommendations. She however noted that over 35 MDAs are still pending hence expressed concern to have this process expedited as it is long overdue.2 She also informed the meeting that the role of the consultant is only facilitative to the MDAs in drafting principles3. It was however noted that due to bureaucracy and limited 2 The Legal Consultant’s work should be complete in a life span of 90 days3 The assignment requires draft principal laws and amendments in agreement with the MDAs, hence calls for their full participation.
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coordination, the work is lagging, other MDAs met so far are also reported to be in disagreement with the BLR Report findings hence recommendations.
Important to note however, the Workshop brought on board more MDAs in the interface with the Consultant which later should ease and quicken her works. Over 50 MDAs participated in the workshop and met the consultant these included but not limited to: Atomic Energy Council, MoTWA, UNMWC, CDO, UTB, ULS, NITA-U, ERA, MIA (Immigration), UCDA, MoLHUD, ICPAU, UCC, URSB, BoU, MoH, KCCA, Police, NWSC, IRA, NDA, CMA, NFA, UFZA, NCHE, UNCST, URA, DDA, MGLSD, UWA, MAAIF, MEMD, CAA, UNBS, MoWET, among others.4
4. STATUS ON ADMINISTRATIVE REFORMS BY MDAsThe deputy Registrar General, URSB made a detailed presentation on the ‘status of Administrative Reforms’ with the following agenda: General Administrative Reforms, Status of Implementation of Administrative Reforms (including the low hanging fruits) and Recommendations. Presentation highlights below. 4.1 The General Administrative reforms:
i. Institutional coordination of activities to minimize multiple submission of common requirements, e.g Company particular
ii. Streamlining of multi-sector activities to avoid unnecessary delays and costs
iii. Publishing application procedures, forms and fees payable and ensuring the information is available online and in strategic places
iv. Reducing application timelinesv. Government should establish an official e-registry, which houses
all information on approved business licences.vi. Adopting of efficient payment systems
4 A detailed list of participants was shared with the consultant and is appended herewith as Annex 2
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vii. Improving enforcement capacity to ensure licenses serve regulatory purpose
viii. Decentralization of operations to reduce costs and time spent travelling to Kampala or Entebbe to process licenses
ix. Elimination of duplicate licenses
It was reported that the process of streamlining/simplifying registration and licensing procedures in Uganda has already taken shape and so far the following are in place;4.2 Status of Administrative Reforms in Brief:
i. Institutional coordination of activitiesii. Adopting an efficient payment systemiii. Elimination of duplicate licensesiv. Government has established an official e-registry, which houses all
information on approved business licences. This information would minimise duplication of submission of information and excessive licencing.
v. Establishment of an electronic licensing portal www.businesslicenses.go.ug.
vi. Authentic Identification of Applicants: for instance Continuous Issuance of IDs by NIRA
vii. Status of Simplifying Registration and Licensing Procedures: Application forms, procedures, fees and client guides are now available online for example Ministry of lands land transfer forms are available online www. mlhud.go.ug , Directorate of immigration has in place on online system that tracks applications via www.immigration.go.ug, Agencies have streamlined procedures and reduced timelines e.g. Transport Licensing board reduced from 31 days to 7 days, Efficient payment systems: URA introduced mobile money payment option, A number of MDAs are recruiting and restructuring to bridge the Human resource gap.
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viii. Equipping of Staff; NDA-given 40 motor bikes for drug inspectorsNational Drug Authority – 40 motor bikes for Drug Inspectors.
ix. Reorganization of sitting arrangements e.g. at the directorate of immigration, Medical Council and URSB.
x. One stop center : Diamond Trust Bank at the 6th Floor URSBxi. Clients Charter: Most MDAs have Client charters which outline services
rendered, application procedures, processing timelines, fees applicable, etc, Some are online but not in MDAs’ website e.g. NEMA client charter is online but not found in website, National Drug Authority client charter is online though still in draft form at www.nda.or.ug, CMA’s is displayed at the reception.
xii. Administrative Sanctions for Staff performance evaluation: Some agencies have tried to put in place negative and positive administrative sanctions, CMA may caution for failure to deliver on time and suspend for non-timely delivery, URSB cautions, suspends, dismisses or prosecutes, depending on nature of misconduct, NFA have a Monitoring and Evaluation Office to monitor performance, Ministry of Gender Staff set self-targets and are facilitated to perform the targets.
xiii. Client feedback; i.e. there is a call Centre at the URSB.xiv. On-line Client feedback; Insurance Regulatory Authority www.ira.go.ug,
Uganda Medical and Dental Practitioners Council - SMS Media blog, National Drugs Authority, Civil Aviation Authority, Allied Health Professionals Council, Other examples….
xv. Public Service Mind-set Change and inter-agency collaboration; Synergies amongst MDAs - TREP project: URSB, KCCA and URA
xvi. Creation of public awareness- Ministry of Lands Housing & Urban Development – Land Registration; open days for the Public, UEPB,
xvii. Designing and redesigning websites; Ministry of Trade website www.mtic.go.ug by Hon Amelia Kyambadde
xviii. Websites: Diary Development Authority, Uganda Revenue Authority – redesigned to transactional website
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xix. Uganda National Bureau of Standards, Architects Registration Board – Electronic Register of Architects
xx. National Council for Higher Education, and many others….xxi. Decentralization of Offices; URSB-Mbale, Mbarara, Kikubo, among others, URA
too and other MDAs.
4.3 For Reforms to be implemented;i. Each MDA should have a business process department that reports to
a multi-agency business process work group – OSCii. Monitoring and Evaluation of reforms implemented – compliance office
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iii. Regulatory impact Assessment departmentiv. Review laws and regulations- most agencies are carrying out legal
reforms.v. Government should set up country-wide civil society internet centres -
This was to be done by the Ministry of ICT 4.4 Recommendations highlighted in the presentation included:
i. MDAs need to continue evolving their customer centric cultureii. Massive sensitization of MDAs about their servicesiii. MDAs should Endeavour to implement their reformsiv. MDAs to have robust websites that are regularly updated.
4.5 Impact of implemented reforms on the cost of doing businessIt was noted that costs, delays and time are reducing following implementation of Business Licensing Reforms. This is mainly following decentralization, online processes, easier payment methods, among others as noted in the status of implementation above. For instance in Transport Licensing Board the number of days reduced from 31 to 4 to get a driving permit, other licenses from 2-3 days to 2 hours, among others.
5. DISCUSSION and RECOMMENDATIONS:A thorough discussion session was held in which members appreciated the progress made so far and pledged to work hand in hand to strengthen these reforms for enhanced Public Service Delivery. Issues of multiple fees, double taxation, duplicity, delays, distinction between regulation and Revenue mobilization were raised. MDAs were therefore advised to review their client charters to ensure transparency and good information flow. They were also encouraged to study the BLR Report so as attend duly to the recommendations and expedite all processes related to drafting of principles5. There is need to review the administrative processes in order to streamline other provisions of impact, time and costs. Operations of local
5 The Business Licensing report, 2012 can also be viewed on the Website: www.finance.go.ug
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Governments vs. main Government also should be harmonized for reduced tax burden to the business community.
All in all, it was agreed by the meeting that the Dialogue was very relevant as it brought implementers together and was a wakeup call to all to prioritize Business Licensing Legal and Administrative Reforms so as to reduce costs due to regulatory burden and streamline business licensing processes and procedures. MDAs were also advised to work on their websites so that they are robust for efficiency in public service delivery. It was also agreed that implementation of required reforms is every body’s obligation and responsibility. Key issues such as streamlining of trading licenses to avoid double taxation, MDAs should report to Committees regularly and voluntarily on achievements and challenges, they should wok proactively and change mindsets to implement administrative reforms such as Sitting arrangements, also need for proactivity in amending laws, even without legal reforms, interagency corporation will be very helpful. There is need for clear distinction between licenses and revenue mobilization, time management should every ones responsibility, revamp client charters and above all expedite all processes geared towards operationalization of one stop centers.
6. CONCLUSION, URSB The Deputy Registrar General URSB, closed the meeting appreciating all participants for attending the meeting and calls upon for more such meetings to be conducted so as to iron out all such pending issues. She emphasized that MDAs have to work together for Uganda’s ranking on the global scene hence attract quality investors who will equally enrich local communities. It was noted that there is need to streamline trading licenses so as to avoid double taxation, a clear distinction between licenses and revenue collection sources. All MDAs should work on effective and efficient service delivery and reduce on delays in processes which hinder growth of businesses. MDAs should work pro-actively and change mindsets in order to implement administrative reforms; such as sitting arrangements for better
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service delivery. For legal related reforms, Laws should be pro-actively amended to avoid unnecessary delays. Interagency Cooperation (inter-operability) should be leveraged upon even with no legal reforms. Time management is key, there is need to expedite One Stop Centers, revamp MDAs Client Charters, among others. MDAs were urged to work in harmony/synergies and also leverage on ICT and undertake reforms so as to reduce costs, time and procedures associated with service delivery and the emphasis on Administrative reforms in order to ensure easier and quick access to Public Services by the Business Community. This will in turn propel Uganda’s overall ranking, making it an investment destination in the region.
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8. APPENDICES8.1 APPENDIX 1: PROGRAMME
Date/Time Activity Presenter/ Session Chair
8.00am - 8.30am Registration of Participants CICS Secretariat
8.30am-9.00am Introduction Dr. Peter Ngategize, NC, CICS Se
9.00am – 9.10am Opening Remarks Chairman BLRRC
9.10am-9.30am Back ground and Objectives of the workshop6
Ms. Anna Nambooze, CICS Secretariat
9.30am – 10.45am Legal Reforms Update Ms. Olive Zaale N, Consultant
10.45am – 11.15am Q&A Session All
11.15am – 11.30am Break Tea Hotel
6 Workshop objectives: 1. Review the status of implementation of proposed Business Licensing Administrative
Reforms by MDAs2. Receive an Update on Legal Reforms by the Consultant and MDAs3. Review impact of implemented reforms on the cost of doing business 4. Agree on way forward and recommendations for expediting implementation of pending
reforms
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Management
11.30am – 12.00 Noon Status of Administrative Reforms
Ms. Jane Okot DRG, URSB
12.00-12.45pm Q&A Session All
1.45pm – 1.00pm Way Forward and Recommendations
Ms. Anna Nambooze, CICS Sec
1.00pm – 1.15pm Wrap up and closing Registrar General, URSB
1.15pm Lunch and Departure at Leisure
Hotel Management
8.2 APPENDIX 2: PARTICIPANTS LISTNo.
NAME ORGANISATION TEL No. EMAIL
1. Katushabe Winstone
Transport licensing board, Ministry of Works and Transport
0772403782
2. Pheona Wall NWSC 0752605115
3. Kwikiriza Benson Insurance regulatory Authority
0772475732
4. Ezra Ssebuwufu KCCA 07944660797
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5. Mark Kamanzi NDA 0785744122
6 Oketta Victoria URSB 0779031320
7 Muhumuza Johnson
URSB 0701874542
8 Joseph Kisande Ministry of Lands 07827378243
9 Denis Kizito CMA 0701324624
10 Paul buyerah Musumali
NFA 0772466569
11 Rebecca Nalumu Uganda Free Zone Authority
0704028174
12 Amos Mubangizi OP/CS 0782891979
13 Mari Nakachwa NCHE 0772927496
14 Mark Sinabulya Consultant/ Olive Zaale
0712939968
15 Dickson Avutia Uganda National Council for Science & Technology
0772694699
16 Baguma Agness Dairy Development Authority
0772448776
17 Ignitius MGLSD-(WHCD) 077454478 [email protected]
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Atukunda 6
18 Tweheisomwe Annet
UWA 0782454515
19 Peter Byaruhanga
CICS- MoFPED 0788498589
20 Luwalira N Deo AEC 0772449848
21 Kakungulu Allan URSB 0702015374
22 Olive Zaale Otete
CICS- Consultant 0772456678
23 Mary Twesigomwe
MoWT 0772314858
24 Sewankambo J Wakiso DLG 0758975717
25 Susannie T Kyamanywa
ICPAU 07829382244
26 Dr. Martin Kasirye
MAAIF 0772562688
27 Edwards Katto MEND 0772962639
28 Godwin Kamugisha
NEMA 0772828175
29 Gloria Asingwire MAAIF 0701967339
30 Angim Dick CAA Uganda 075265285 [email protected]
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Simon 5
31 Kabugo Stephen URSB 0776061604
32 Namuli Catherine M
URSB 0784560763
catynamuli.mugewa
33 Tumwebaze Nicholas
URSB 0774516295
34 Mande Kesiime Lottery Board 0782907830
35 Alex Ayesigye URSB 07743883028
36 Fiona Ibudi CICS/ MoFPED 0782673488
37 Kisira Steven IRA 0700616051
38 Nahamya Moses UNBS 0772683322
39 Jane Langoyes URSB 0782747007
40 Kiseleye Robert MoWT 0782715379
41 Melanie Nagasha Min. of Lands 0772622117
42 Lindha Ddamba Electricity Regulatory Authority
0754936454
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43 Muhwezi Julius CICS- MoFPED 0774913294
44 W Ngonde DCIC(Immigration) 0772485623
45 Kizito Mayanja UCDA 0701960018
46 Joseph M. Mwangala
URA 0717442165
47 Jossy Muhangi UWA 0772673131
48 Mark Omwonj ICPAU 0772740124
49 Ronald Wabwire UCC 0751939218
50 Emalyn Kamusiime
MoFPED 0751818104
51 Sekyanzi Deo AEC 0703674880
52 Sarah K. Kibenge MoFPED/ CICS 0700466158
53 Odong James URA 0717442633
54 Nanvule Doreen UMDPC 0782849018
55 R. Kijjambu New Vision 0772585346
rkijjambu@newvision
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56 Tukamushaba Ali MWE/ DWRM 07741262665
57 James Saahe NITA 0772709516
58 Zackey Kalega MTIC 0702841805
59 Chemonges M Sabilla
Uganda Wild Life Authority
0782948882
60 Waya Mugeni Rosmary
Education 0706850355
61 Nkonge Douglas MGLSD 0782301651
62 Edward Martin Rwarinda
MWE/ Director of Water Resource Mg
0776171096
63 Sarah Naigaga NEMA 0782436700
64 James Bukulu BOU 0772514444
65 Amanya Collins MWE 0772386638
66 Mpakib W Robert DCO- Wakiso DLG 0782898879
67 Isaak Lumbuye UMDPC 0774288368
68 Chris MoLG 078205234 [email protected]
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Niwandinda 5
69 Allen Bucyana MOJCA 0772946691
70 Nuwagaba Vincent
MGLSD 0702675337
71 Numila Namuma CMA 0782186778
72 Nabbanja Annet AHPC- MoH 0782014659
73 Andema Fred KCCA 0794660272
74 Kamogo Hamza Mukono DLG 0703366047
75 Anna Nambooze CICS - MoFPED 0759071143
76 Dr. Kasima S Police 07122767710
77 Kwikiriza Yairo CICS - MoFPED 0771930210
78 Ssensalire I S DICIC 0772451497
79 Owachi William COHM Devt Org 0772614692
80 J Ssesaja UTD 07526694922
81 Washeba P MoFPED 077243015 [email protected]
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6
8 Gimara Francis ULS 0772225222
83 Anthony Oliam DCIC 0752603145
84 Isaac Teko BoU 0771400701
85 Nimbashabira Natharius
Atomic Energy Council
0772888856
86 Mukongo Rogers Gumuk Consults 0702263340
87 Betty Makula CICS - MoFPED 0781615837
88 Abeho Annah M MoLG 0752397020
89 Comie Namutebi MTIC 0755632463
90 Lule Allan CICS 0702201387
91 Irene Lugayizi MOJCA 07724309732
92 Njoola Charles Mukono District 0712847384
93 Hamega Miria Min Of Trade industry & Cooperatives
0782047047
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94 Nahabwe Barbra MoFPED 0781881222
95 Musinguzi Karlmarx
MGLSD 0712930645
96 Patricia A opoka URSB 0772852434
99 Eric Lubega Mukisa Community Care Centre
0772688003
100
Asasira Andrew MoFPED 0781539280
101
Camilla Kuckatz MoFPED 07895779112
102
Mutegeki Henry ERA 0773123245
103
ASIIMWE Stephen
NCHE 0718182900
104
Kemirembe Joy ERA 0712811845
105
Kamwesigye Edwinah
BIIL 0775278782
106
Ssali Gadafi Ministry of Tourism 0772688290
107
Peter Ngategize CICS - MoFPED 0772824718
108
Helen Twodo CICS - MoFPED 0772354199
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109
Bugembe Godfrey
CICS 0774717134
110
Isingoma Fredrick
Uganda Nurses & Midwives Council
0782640269
112
Tayebwa Cosmas
Ministry of Gender Labour & Sd
0788994949
113
Eva Katushabe MGLSD 0702482420
114
B Yakutagare MoW&T 0777715959
115
Seruwooza Patrick
ERA 0717442627
116
Kansiime Rose MoFPED 0712993361
117
Caroline A Mugisha
NITA - U 0772496710
More lists: Media close to 20 participants to be included.
8.3 APPEDIX 3. PRESENTATIONS *MoFPED & URSB*
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