Designing and implementing policies well really matters. It is no wonder that a cross section of the private sector, academicians and researchers want government to abolish bureaucratic habits, carry out tax reforms and be proactive in implementing policies that will make Uganda competitive, Martin Luther Oketch explains.
Uganda’s business environment should be freed up from a tangle of red tape for the economy to become competitive.
This view resonates with a cross section of the private sector, academicians and researchers who want government to abolish bureaucratic habits, carry out tax reforms implement policies that will attract investment to Uganda.
These experts believe that if the state institutes effective policy reforms in business regulations, implementation of new policy actions and well-functioning infrastructure particularly railway transport and lower costs of hydroelectricity will offer Uganda a good business environment. This will translate into increased investment in the economy and competitiveness.
Competitiveness is considered as a key criterion for assessing the success of countries, industries and companies. World Economic Forum defines competitiveness as the set of institutions, policies and factors that determine productivity.
The strength of competition depends on both the conduct of firms and the external business environment in which they compete, the state of infrastructure, legal framework and the effectiveness of the financial system.
Speaking during the 10th National Competitiveness Forum held early this month under the theme: Enhancing Competitiveness in Uganda’s Agro-Industry at Mestil Hotel, Mr Anile Patel, managing director Grant Thornton, said effective policy implementation across all sectors of the economy and infrastructure development will make Uganda competitive.
Mr Patel said investors’ incentives ought to be analysed to find out jobs created, investment made, income tax lost and results of sector performance.
In the current Doing Business Report by the World Bank, Uganda is ranked 116th out of 190 economies, a position that lags far behind in terms of attracting private sector investment.
“Uganda must improve in policy implementation, abolish bureaucracies and barriers to ease starting a business, creating an environment that encourages investment and compliance is needed,” he explained.
Agriculture has the potential to drive Uganda into the middle-income status while supporting Uganda’s competitive advantage in the global economy.
Competitiveness also in with investments in research and development, while innovation and other types of knowledge capital improve a company’s product quality and reduce production costs.
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Speaking on the subject […]