Tayebwa makes case for diaspora bonds

CALIFORNIA-Ugandans living in the diaspora could soon begin trading in government treasury bonds. This is after Deputy Speaker, Thomas Tayebwa pledged to lead efforts to establish diaspora bonds.

Tayebwa made the pledge over the weekend while speaking at the 34th Uganda North America Association Convention [UNAA] in San Francisco, California, USA, where he said nationals from other countries are helping their governments to raise money for development through such bonds.

“We want you to contribute to national development through diaspora bonds which have helped governments to get money from their people in the diaspora,” Tayebwa said.

He said that investment opportunities are more in Africa, where the continent is making 30 percent returns on investment compared to investing in America where returns on investment are as low as one percent for Ugandans.

“Most of you who are fixing money here, you can use your money to buy treasury bonds in Uganda because we borrow from the domestic market,” he said, adding trading in government bonds in Uganda attarct a return on investment of around 15 percent per annum.

The Deputy Speaker assured the Ugandans that the country’s debt to Gross Domestic Product ratio is 48 percent compared to the rest of Africa at 50 percent.
“This means your money is safe. We allow you to bring in your money and take it out. We have free zones in which if you invest around US$2 million and also get all these benefits like tax-free cars,” Tayebwa said.

He added that Uganda is set to benefit from the growing population as more countries join the East African Community [EAC].

“East Africa is a market of 400mln people. By 2050, it is anticipated to be a market of 854mln people. We are going to be a much bigger market where you produce in Uganda and sell to 800mln people, duty-free,” he said.

Tayebwa said that Parliament will discuss strategies to increase Uganda’s presence in the USA, as a way of maximising business opportunities.

“When you look at California alone, as a state, it is the fifth biggest economy in the whole world but we do not have any official presence here.  As a government, we have to go back and rethink. We are going to support you,” said Tayebwa.

He also called on Ugandans to promote unity, saying that working together will make their stay in America easy.

“You should love your country and focus on promoting it. The moment we have a country that is loved and taken in high regard, that is what we need,” Tayebwa said urging the Ugandan diaspora to do away with sectarianism based on political parties they support.

Tayebwa said that the call by the diaspora to take part in the voting at the general elections will be considered when the constitutional review commission is in place soon.

The Government Chief Whip, Hamson Obua gave reassurance of government’s commitment to provide services to Ugandans in the Diaspora through missions abroad.

“We are here to listen and discuss with you, but more importantly to take back home your action points for purposes of implementation. What unites us is the fact that we do not have a second-choice country. That is our point of convergence, ” Obua said.

Uganda’s Deputy Chief of Mission in Washington DC, Ambassador Santa Laker Kinyera said the insufficient budgetary allocation to the embassy constrains them to serve Ugandans better.

“The embassy in Washington DC covers a very wide area of accreditation. This calls for better appropriation of funds to the Ministry of Foreign Affairs and Missions abroad. Of course, we appreciate what Parliament has done to improve appropriation,” said Kinyera.

Kinyera also revealed that  the embassy is discussing with the Ministry of Internal Affairs to provide mobile kits for passport processing to increase outreach to Ugandans outside the USA and those in hard-to-reach areas within the USA

She added that despite the shortcomings, the remittance flows to Uganda from abroad stands at US$1.2 billion, with US$ 100mln coming from the USA.

https://thecooperator.news/tayebwa-urges-german-mps-to-woo-home-investors-to-uganda/

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