The Kabale district chairperson, Nelson Nshangabasheija expressed disappointment at the stark contrast between Uganda’s frequent power disruptions and the consistent power supply observed in neighboring Rwanda.
He emphasised an urgent need for intervention, saying, unstable power supply is gravely affecting businesses within the district, subsequently affecting revenue collection in form of taxes.
The district boss was backed by several other residents who intimated that the same concerns have been raised on several fora but a sustainable solution is yet to achieved.
Aggrey Matsiko, one of the residents suggested that the Maziiba Hydro-electricity generating dam should be separated from the national grid. He argued that despite being consistently in production, connecting the dam to the grid has not provided any tangible benefits to the region, as power outages continue to plague the area.
This was during a post-Budget Conference organised on Friday by the Uganda Revenue Authority (URA) in Kabale Municipality, bringing together stakeholders from the Kigezi sub-region.
The Commissioner for Legal services and board affairs, Patience Tusiime Rubagumya, stressed the necessity of collective efforts to raise Uganda’s Gross Domestic Product (GDP) ratio and achieve self-sustainability.
Rubagumya expressed concern over Uganda’s low tax-to-GDP ratio, which she said, has consistently ranged between 11% and 13%, falling below the sub-Saharan Africa average of 16%. She emphasized the need for all stakeholders to work together to increase this ratio to a minimum of 15 or 16 percent.
To meet this goal, Rubagumya called for support and cooperation from stakeholders in reaching the revenue collection target of 29.7 trillion shillings for the upcoming 2023/24 financial year.
Power outages notwithstanding, the commissioner encouraged citizens to fulfill their tax obligations as an act of patriotism and encouraged them to demand accountability through the Office of the Inspector General of Government.
However, the residents insisted, asking URA to help in addressing the unstable power issue instead of burdening businesses with high taxes while economic growth remains stagnant.
Addressing these concerns, John Muherwoha, the acting commissioner in charge of the Budget Policy and evaluation Department at the Ministry of Finance, assured stakeholders that the government is actively engaging with the Ministry of Energy and Mineral Development.
“Their joint efforts aim to tackle the challenges in power distribution within the region in the medium term,” he assured.
Muherwoha further stated that the government is committed to providing a more reliable electricity supply, with plans to implement significant improvements starting from the next financial year.
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