IMPACT OF STRONG CURENCY AGAINST DOLLAR

Strong shilling hits local tax revenue
Kampala-Uganda
THE strong shilling has hit customs revenue collections, resulting into an estimated loss of sh39.39b in the first quarter of the financial year, a Uganda Revenue Authority (URA) report shows.

The revenue body had projected tax collections based on a weaker shilling against the dollar.

“Using the annual estimated average exchange rate for 2009/10 of sh2,292.9, customs tax revenue will have been sh193.77b, sh181.79b and sh180.53b for July, August and September 2009,” noted the report.
However, due to fluctuations in the exchange rate, customs revenue was lower than predicted.

“Therefore, the estimated revenue loss as a result of the appreciating shilling was sh9.27b, sh13.99b and sh16.13b for July, August and September.

“Therefore, the exchange rate coupled with other factors affect tax revenue.”
Contrary to URA’s projections, the shilling has since June appreciated against the greenback, trading at 1,860/1,870 to the dollar after shedding off over 35% of its value between August 2008 and May 2009.

It traded around 1,945/1,950 rate around the same period last year.
The central bank attributed the appreciation to a combination factors including dollar inflows from offshore investors who have returned to the market, remittances from Ugandans abroad, increased export receipts boosted by improved regional trade and commercial banks unwinding their long dollar positions.

But the governor Tumusiime Mutebile announced recently that the central bank was planning more frequent interventions in the foreign exchange market to minimise the negative impact of a fast-appreciating shilling on the economy.

“In addition to intervening to smoothen out volatility, we will until further notice intervene to stop excessive appreciation of the exchange rate,” he said.

Mutebile said the central bank was determined to ensure that the appreciation of the exchange rate would not lead to an unnecessary reduction in aggregate domestic demand.

“I have said before that we are not committed to a particular exchange rate in the economy, but because of the problems that are happening now which lead to a reduction in domestic demand, Bank of Uganda will for some time now attempt to ensure that the appreciation of the exchange rate does not worsen the situation regarding aggregate demand,” he explained.

Following these comments, the shilling shed some of its gains to trade at a three-month low of 1,935/1,940 per dollar over the weekend.
The shilling depreciated due to US currency purchases by offshore investors and telecom companies. Commercial banks also made purchases to cover their short dollar positions.

Dealers said the central bank intervened on Tuesday, buying an estimated $10m from the market. The local unit had opened trading at 1,914/1,919 to the dollar but the central bank action pushed the rates to 1,925/1,930.

“Following the central bank previous comments on frequent interventions, their action to buy dollars is sending a signal that the local unit will head lower,” said Denis Mushabe, a trader with Standard Chartered Bank.
Market sentiment is for a weaker shilling trading in the 1,950-2,000 range.

While a strong shilling favours importers, exporters suffer because for every dollar earned, they get fewer shillings.

The dollar is one of the major currencies that affect Uganda’s trade with the rest of the world and resultant fluctuations in foreign exchange market impact on trade and tax revenue.

URA, however, expects the impact of the stronger shilling to boost import trade since importers bring in more goods at lower prices.

“Assuming all factors remain constant, a strong shilling is expected to lead to increase in the volumes of imports and subsequently tax revenue from international trade in the short-run, while these gains will also be felt in the domestic taxes after trade in the domestic market has taken place.”

Performance of imports
Importers have brought in more goods in the run up to the festive season with home consumption goods for the August to October 2009/2010 financial year up at sh1,897.05b compared to sh1, 466.95b over the same period last year.

However, on a month-on-month basis, imports have been in a declining trend.
For example, imports for August were at sh515.76b before declining to sh480.20b in September and to sh469.33b in October.

URA said the top 17 imports were classified as raw materials, plant and machinery and petroleum.
Some of the major raw materials imported included wheat and melsin for the milling and bakery industry, palm oil for the edible oil industry as well as cane or beet sugar for the beverage industry.

Indicating increased activity in the services sector, plant and machinery imported over the same period included base stations, electrical transformers and drilling equipment, structures as well as telecommunication and transmission machinery.

Vehicle imports dip
Data shows that the total number of motor vehicles imported between August and October was 8.8% lower at 11,280 compared to 10,283 imported over the same period last year.

“This decline was reflected in all the classes of motor vehicles with the exception of trucks and trailers, whose growth could be attributed to incentives on importation of goods vehicles,” said the report.

However, the month-on-month figures, show that the number of motor vehicles for August and October were less by 1.3% and 11.2% respectively compared to the same months last year.

On the other hand, September car imports were higher by 21.6 % compared with 2008.

The vehicles imported included tractors, passenger service vehicles, saloons, trucks, special purpose vehicles and trailers.


Adopted from New Vision

SSBL OPENS INVESTMENT OPPORTUNITY IN SOUTH SUDAN

BUSINESS
• Invests USD 50 Million

By Mugume D. Rwakaringi

INVESTMENT/JUBA-SOUTH SUDAN, DEC 2009

The managing Director for South Sudan Beverages Limited (SSBL) a subsidiary of SABMiller plc, Mr. Ian Alisorth has praised South Sudan as a conducive Country for investment noting the existence of virgin market, Nile Fortune has reliably established.

With less than one year since SSBL started production, the sales and production has more than doubled.
Mr. Ian said that SSBL will benefit the government through taxes and citizens directly by providing employment opportunities to citizens.

“We directly employ in our factory over 1200 workers who include 200 factory technicians and 500 distributors and stockers”, noted Mr. Ian.

SSBL has also promised to encourage farming in a bid to have food security in South Sudan in particular for those communities neighbouring the factory.

He added: “We give the factory waste inform of manure to the farmers such that they can be able to improve their livelihoods”.

The community has been advised to invest in agricultural products which will fetch ready market for this factory.

Soghurm, Cassava and Sugar Canes have been earmarked as the mostly needed raw materials for SSBL.

SSBL makes about 3000 litres of beer per hour when operational which generates a growth income of at least 2.5 Million SDG per month. SAB Millers through Southern Sudan Breweries Limited (SSBL) a looping Fifty Million worth of United States Dollars ($ 50 M). The factory donates 0.50 Sudanese Pounds (SDG) from each Litre of beer sold by SSBL as a sign of giving back to the community.

“Our production has now more than doubled within this short time”, said a seemingly happy Mr. Deng Mading Mijak, SSBL Corparate Affairs Director in an exclusive interview with Nile Fortune as he shows me around the factory.


Tasked whether these investors are not scared by similar products especially those imported from other Countries and other Companies with related products, SSBL Managing Director Mr. Ian expressed confidence since he believes that they (SSBL) stand a comparably bigger advantage by providing quality products at an affordable price.

“We are a multinational company thus have a comparative advantage”, noted Mr. Ian quickly adding that they also lobby from GoSS to protect them especially protection against dumping.

SSBL started with White Bull lager (Beer) but has now started producing soft drinks (Club Minerals) and plans are underway for bottled water (commonly known as Mineral water). It also supplies other SAB millers plc products from her sister companies from other countries such as South Africa, United States and South Africa a move aimed at providing quality.

SSBL becomes a Largest manufacturing Investor in South Sudan with fifty Million United States Dollars ($ 50 M USD) and is optimistic to making profits after pioneering a beer factory in South Sudan.

“We have as international standard laboratory in South Sudan”, noted Bismark Oroma, SSBL Quality control Manager (QCM) while pointing at a $ 200.000 Alicoliser Beer Plus (ABP)which is used to control the level of alcohol in beer.

Mr. Deng Mading noted that SSBL should be credited for coming at this time to invest such amount of money in South Sudan. “This becomes a good example for other intending investors in South Sudan”, he explained.

SSBL donates 0.5 SDG from each litre sold to benefit the surrounding community as a give back to the community.

It also provides safe drinking water for the community and pays different taxes to both Government of Southern Sudan (GoSS) and Central Equatoria Government (CES).

“We allow students and other experts to use our laboratory facilities”, noted Mr. Wadada Davidson. Adding that Students and other researchers in Sudan should feel free to come and do their experiments in SSBL Factory without any costs.

SABMiller plc, is one of the world’s leading brewers with operations and distribution agreements across six continents with group revenue including the attributable share of associates’ and joint ventures’ revenue of US$4,509 million as per September 2009 unaudited report.

In Africa, SABMiller has brewing or beverage interests in 32 countries in addition to South Africa. This includes 18 countries through a strategic alliance with the Castel group, and several countries where SABMiller is a Coca-Cola bottler, including Angola, Botswana and Zambia.

South Sudan has had a relative stability after the signing of Comprehensive Peace Agreement (CPA) in 2005 which brought an end to over two decade war between mainly Sudanese People’s Liberation Army/Movement and the Khartoum government. South Sudan remains depending on imported goods especially from her neghbouring Uganda, Kenya and Ethiopia and others from Khartoum.

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UN OFFICIAL CALLS ON PROTECTION OF CHILDREN

LAW AND SOCIETY

it is everyone responsibility to act

By Mugume D. Rwakaringi, JUBA/SOUTH SUDAN

Ms. Radhika Coomaraswami, UN Secretary-General’s Special Representative for Children and Armed Conflict has reaffirmed United Nations Children Emergency Fund (UNHCR), United Nations Mission in Sudan (UNMIS) and other UN agencies commitment to sensitise all the stakeholders in Southern Sudan in an effort to have Child abuse eliminated.




Ms. Radhika Coomaraswami, UN Secretary-General’s Special Representative for Children, girl Children are the most vulnerable during armed conflicts

Radhika whose mission last month addressing Journalists at UNMIS headquarters on her trip to Sudan where she had a number of meetings in Khartoum, Darfur and Juba, focusing on issues pertaining to children and armed conflict on the invitation from the Government of Sudan.

Ms Radhika added that UN and other agencies are however affected by targeting of humanitarian workers and the denial of humanitarian access by rebels such as Kony’s Lord’s Resistance Army (LRA), SLA-Free Will, the JEM Peace Wing, the SLM-Abdulgassim and inter-tribal conflicts in Southern Sudan.

She however expressed optimism in combating the situation saying that this will be possible because UN has managed to get key commitments from parties. “The Action Plan calls for the release of children, for the verification of that release by United Nations agencies, and the reintegration of children according to that”, noted Ms Coomaraswami.

The Secretary-General’s Special Representative for Children and Armed Conflict also added that Uganda People’s Defence Forces (UPDF), Uganda army who are fighting the LRA get many children, has accepted to enter into a protocol on immediate release of these children once they rescue them. They will enter into a protocol with UNICEF and the Ministries of Social Welfare in Yambio and other such affected areas.

She was also pleased with Ministry of Justice commitment that there would be no executions of children in Sudan.

Consequent from inter-tribal conflict, 370 children have been abducted in the last few months.

She also applauded The Southern Sudan Child Protection Act 2008 saying it will help the protection of Child rights in Southern Sudan.
“This is a positive move but this (Child Act) to be effective, there must be cooperation of all stakeholders including Media”, Ms Radhika noted.
Ms. Speaking on the same occasion, Ms Silivia Pasti, UNICEF Child Protection Officer said that UNICEF will be working closely with other UN agencies to ensure that the rescued children immediately start receiving help.

Coomaraswam has a long-standing history as a human rights advocate, with a particular focus on advocating for children and women issues and has occupied human rights positions both in Sri Lanka and internationally.

She was appointed by Secretary-General Mr. Ban Ki-moon as Special Representative for Children and Armed Conflict.

Her visit to Sudan was mostly concerned with child soldiers; rape and sexual violence and killing and maiming of children.

An estimated 300,000 child soldiers - boys and girls under the age of 18 - are involved in more than 30 conflicts worldwide. Child soldiers are used as combatants, messengers, porters, cooks and to provide sexual services. Some are forcibly recruited or abducted; others are driven to join by poverty, abuse and discrimination, or to seek revenge for violence enacted against themselves and their families.

The 2002 Optional Protocol to the Convention on the Rights of the Child on the Involvement of Children in Armed Conflict outlaws the involvement of children under age 18 in hostilities.

During armed conflict, girls and women are threatened by rape, domestic violence, sexual exploitation, trafficking, sexual humiliation and mutilation. Use of rape and other forms of violence against women has become a strategy in wars for all sides. Investigative reports following the 1994 genocide in Rwanda concluded that nearly every female over the age of 12 who survived the genocide was raped. During the conflict in the former Yugoslavia, more than 20,000 were estimated to have been sexually assaulted.

Of the 25 countries with the highest proportion of children orphaned by AIDS, about one-third have been affected by armed conflict in recent years. Of the 10 countries with the highest rates of under-five deaths, seven are affected by armed conflict.

Children in armed conflict also routinely experience emotionally and psychologically painful events such as the violent death of a parent or close relative; separation from family; witnessing loved ones being killed or tortured; displacement from home and community; exposure to combat, shelling and other life-threatening situations; acts of abuse such as being abducted, arrested, held in detention, raped, tortured; disruption of school routines and community life; destitution and an uncertain future.

The Writer is also a Law Lecturer at IMS-Southern University, Juba.

Tel: +249-955003929
Ends

U.S. forces missed chance to get bin Laden in 2001

The U.S. military could have captured or killed Osama bin Laden in 2001 if it had launched a concerted attack on his hideout in Afghanistan, according to a report prepared for the Senate Foreign Relations Committee.

The report, written by staff working for the Democratic majority on the committee, said the al Qaeda leader's escape was a lost opportunity that altered the course of the war and paved the way for insurgencies in Afghanistan and in Pakistan.

"Removing the al Qaeda leader from the battlefield eight years ago would not have eliminated the worldwide extremist threat," the report said.

"But the decisions that opened the door for his escape to Pakistan allowed bin Laden to emerge as a potent symbolic figure who continues to attract a steady flow of money and inspire fanatics worldwide."

U.S. soldiers and Afghan militia forces launched a large-scale assault on the Tora Bora mountains in 2001 in pursuit of bin Laden, believed to be hiding in the region with supporters after the Taliban government was removed from power.

U.S. military leaders allowed Afghan militiamen to spearhead the assault and bin Laden managed to escape.

The report said U.S. commanders rejected requests for more troops to launch a rapid assault in the area, relying instead on air strikes and the Afghan militias to lead the attack and Pakistan's Frontier Corps to seal off escape routes.

"The vast array of American military power, from sniper teams to the most mobile divisions of the Marine Corps and the Army, was kept on the sidelines," it said.

The report was especially critical of military leaders under former President George W. Bush, including former Defense Secretary Donald Rumsfeld and his top military commander, retired General Tommy Franks.

Democratic Senator John Kerry, the chairman of the committee, has argued the Bush administration missed a chance to get bin Laden and his top lieutenants in Tora Bora just months after the September 11 attacks on the United States.

Kerry lost the 2004 presidential election to Bush.

The report was issued just days before President Barack Obama was expected to announce the United States would send about 30,000 more troops to secure population centers and train Afghan security forces.

There are about 68,000 U.S. troops and 42,000 allied soldiers in Afghanistan.
Source: Reuters

Miss “Malaika”: An Angel brightening for hope

By Mugume D Rwakaringi, Juba-Sudan
Size: 6'0", 1'81CM
Hobbies: Meeting friends, Travel and watching movies & Football (Especially Premier League)
Education: Masters, Accounting & Finance
Miss Malaika, Nok Nora Duany 25 was born in Juba but spent most of her time in USA where she acquiring her masters in accounting and Finance from Georgetown University.
She has worked for GoSS and operates private business. With the help of her family, the reigning Malaika started Sports Revolution, which organises basketball tournament and other sporting activities for young Southern Sudanese where local talent is spotted and sent for further training abroad.
The outgoing Miss Malaika 2009 will end her reign with a 5/10 KM walk/race which which will start at Nyakuron cultural center on November 21, 2009.

Miss Malaika 2009, Nok Nora Duany will use this race as a kick-off start to raise funds which will be used for girls’ education promotion in Southern Sudan under her founded NGO Sports Revolution Girls.

Foreigners to participate in this event will part with 50 SDG where as Sudanese nationals will pay 10 SDG with all precedes going for this charity.

There is on going registration taking place at The Ministry of Commerce and Industry which will continue up to the event day.
Malaika is a swahili word which means an angel! Ends

TIPS FOR JOB INTERVIEW PART I

TIPS FOR JOB INTERVIEW PART I


By Fareed Musa Fataki

Am inspired to write this article because of the experiences I have gone through both as in interviewee and interviewer for the last ten years. Most times we loose the job not because we are not good enough but because of simple mistakes that we could avoid.

We often fail to create or give the best impression pf ourselves to the employer by being timid and fearful, not being sure of our selves, or yes I know some interviewers can mean to be intimidating but always relax and listen to the question attentively and take your time to answer it, this way, you build confidence in you and to the employer and remember to always beg the pardon for any question not clear to you before answering it. This way you win the show and you create good impression before your potential employer.

Note that, the employer is looking for the best candidate for the job in less than an hour and that you are not alone, therefore, convince the panel members that, you are the best that there is by the way you talk, the way you answer the questions, be honest and save time by saying I do not know the answer rather than giving wrong answer to a correct question during the interview, rely more on your strength but also, show them your weaknesses and prove that, you are a first leaner who can turn these weaknesses into strength within short period of time

Before we proceed, note that, an interview is not an interrogation; it's a conversation. Thus, I believe the best way to prepare for an interview is to come armed with a multitude of small stories about the job advertised and relate this stories to your personal life.

It is important to relax and feel at home. Interviews are not really interviews at all. They're conversations. Treat them like conversations, and the tension will slowly dissolve. Remember: when you walk into that office, you don't have the job to begin with. In theory, you have nothing to lose. You either come out way ahead or back where you started. If you approach the situation with a "win-draw" mentality, most of the pressure will fall by the wayside.
You should start by developing your stories around these areas:
• Examples of when you either made money or saved money for your current or previous employer.
• A crisis in your life or job and how you responded or recovered from it.
• A time where you functioned as part of a team and what your contribution was.
• A time in your career or job where you had to overcome stress.
• A time in your job where you provided successful leadership or a sense of direction.
• A failure that occurred in your job and how you overcame it.
• Any seminal events that happened during your career to cause you to change direction and how that worked out for you.
Always know what you are being interviewed for and what type of interview you are going to be subject to. This trick is always in the terms of reference for the job contained in the advert. Always remember all that is asked for in the adverts and compare the required skills to what you have, this way, you will asses your strength and weakness and before anything, prepare to answer questions on your weaknesses more than your strength. Give clear and specific response to how you are going to work round your weakness and turn them to strength and be open to discuss weaknesses.
Competency-based interviews, as opposed to traditional interviews, have become more common today. In a traditional interview, the interviewer will ask you questions focused on whether you have the skills and knowledge needed to do the job. A competency-based interview goes further by asking you additional questions about your character and personal attributes that can better determine whether you fit their corporate culture. These are called "behavioral competencies."
A competency-based interviewer will spend about half the interview on your job skills, and about half on your behavioral competencies. He or she will be looking for evidence of how you have acted in real situations in the past. So having your stories ready to go, and discussing them during a conversation between two equals, plays very well for this type of interview.
.Attitude is everything. If you're smiling, excited and optimistic, you've already won half the battle. If you're cold, distant and uninterested, you've already lost 99% of the battle.
No matter what credits are in your resume or
how nice your CV is written, always try to be yourself. If you act like someone else and they like you, they don't actually like YOU. They like the person you're pretending to be. If you end up getting a job there, you won't be able to keep up the facade for very long anyway. Honesty and authenticity are very appealing characteristics. If both parties stay true to themselves, they'll know if they're right for each other. And in the end, that's usually what matters most.
Appearance counts. Before you meet people, virtually the only judgment you can make is based on aesthetics. What you're wearing matters. What they're wearing matters. How you sit, stand, shake hands, hold your pen and walk up the stairs counts. Not enormously, but enough. First impressions are huge. Also, how does the building look? Is the lobby clean and organized? Are the cubicles bunched together? Is the ceiling high or low? Does it look like a fun place to work? Does it invite you to come back?
All the smartness, good skills and high experience in the job mean nothing without the right fit. If your values aren't aligned with those of the company, you're doomed. If you like to have fun and they're always serious, don't even bother. Seriously. The more you fit in, the more you'll want to come back every day and bust your butt. If you're always at odds with your coworkers, you're going to hate your job. And my simple advice is for you to look for another job.
DON’T MISS THE FINAL TIPS IN OUR NEXT EDITION

The writer is the Deputy Director for Establishment/ Human Resource, with the Southern Sudan Centre for Census, Statistics and Evaluation; he is also a Consultant in Peace and conflict resolution as well as a Researcher.

Ends

BLACK MARKET OUR PROBLEM, MEX AL MUSTAQBAL MANAGER

BLACK MARKET OUR PROBLEM, MEX AL MUSTAQBAL MANAGER

Mr. Samuel Justo, Manager MEX

BLACK MARKET OUR PROBLEM, MEX AL MUSTAQBAL MANAGER

Mugume D. Rwakaringi, Juba




The General Manager of Mex Mustaqbal Company for Exchange, Mr. Samuel Justo Beitelmal (above) has decried the presence of the “black market” dealers as the major stumbling block to their dealings in the foreign exchange business and money transfer systems, Nile Fortune has reliably established.

In an exclusive interview with the Nile Fortune, Mr. Samuel said that the black marketers (unregistered money changers) sometimes keep a lot of money thereby making it very difficult for the Central Bank; Bank of Southern Sudan (BoSS) to control.

“These people (black marketers) keep a lot of money which would be normally in circulation”, noted a concerned Samuel.

This he explained is also affected by the already presence of many Foreign Rxchange Bureaus and Money transfer Offices in Juba.

“You can’t imagine that we have about 18 registered Forex bureaus and other 3 yet to be approved yet Khartoum the largest the capital city of the entire Sudan also has 18.

He also added that because of the presence of many expatriates in South Sudan also becomes a problem especially when these expatriates are returning back home who demand for a lot of money which may not be available for them.

“These people (expatriates) definitely cannot carry bags of money when they are traveling and they also need to take their money either in their local currencies or the International currency (United States Dollar).

Mr. Samuel Justo however noted that the government of Southern Sudan through the concerned Ministries and BoSS is striving to curb the problem.

This is just a growing economy; I am hopeful that everything will stabilize when South Sudan has gained many local manufacturing factories.

Mex Mustaqbal Company for Exchange other than dealing with forex services also transfers money to other destinations notably to East Africa (Kenya, Uganda and Tanzania), Europe (London, United Kingdom) and in United States of America.

Sudan has currently been hit hard by the economic crisis because of overdependence of on oil as a major source of national income. The price of oil has dropped from US$147 per barrel in July 2009 to US$50 per barrel since February 2009.

South Sudan continues to lose large amounts of money through profit repatriation. Over 90% of day to day commodities like vegetables, fruits and fish are imported from neighbor countries such as Uganda, Kenya, and Ethiopia. Also imported from these Countries are building materials since South Sudan is rebuilding her infrastructures.

Meanwhile South Sudanese are massively registering for the forth coming elections that will start in April2010. The same registers are expected to be used for the Referendum elections in 2011.

Ends