The Economic and Commercial Office of the Chinese Embassy recently hosted a high-level delegation from the Uganda Revenue Authority (URA) at Arirang Hotel in Kampala. The meeting focused on opening new avenues for collaboration, particularly in the Arena of tax education, within the Chinese business community.

During the meeting, Abel Kagumire, the Commissioner of Executive Operations praised the strong relations between Uganda and China, which have flourished since the establishment of diplomatic ties in 1962, and highlighted the tangible achievements of this bilateral cooperation.

Earlier this year, URA’s Commissioner General, John Musinguzi Rujoki, launched a Chinese-translated version of the Uganda Taxation Handbook to better serve the needs of Chinese businesses in the country. The initiative was further supported by a Memorandum of Understanding (MoU) signed between URA and the China Chamber of Commerce in Uganda (SinoCham).

“We’ve seen a growing demand for continuous updates from the Chinese business community, which has driven this ongoing collaboration,” said Wang Chenxu, First Secretary at the Economic and Commercial Office of the Chinese Embassy. He continued, “It’s essential that we stay informed about the evolving tax landscape in Uganda.”

Abel Highlighted URA’s commitment to simplifying tax laws and helping the Chinese community to understand them better. He confirmed that, in addition to the Taxation Handbook, other key materials, such as the Uganda Incentives Guide, would also be translated into Mandarin to help Chinese investors better understand the opportunities available to them, especially in sectors like agriculture.

“This will enable our potential investors from China to understand the incentives at their disposal, especially in Uganda’s agricultural sector, their obligations and responsibilities, as well as fulfil them,” he said.

He also commended Chinese investments in Uganda, noting the significant contributions to the country’s industrial growth, such as the Sino-Uganda Mbale Industrial Park, which has created 5,000 jobs, and the ongoing development of the Namanve and Kapeeka industrial parks.

China is Uganda’s largest source of Foreign Direct Investment (FDI), with investments spanning sectors such as manufacturing, infrastructure, and road construction. According to the Chinese Embassy, the total FDI from China to Uganda has exceeded USD 131million. Trade between the two nations is also robust, with Uganda exporting goods worth over USD 54 million to China and importing goods exceeding USD 1.8 billion.

Despite the strong economic ties, the trade imbalance remains a point of concern. James Malinzi, URA’s Assistant Commissioner for Risk Management, urged the Chinese Embassy to advocate for more Chinese companies to establish production facilities in Uganda to help address the trade deficit.

Malinzi highlighted the importance of local manufacturing, particularly within the East African Community (EAC) market, which includes over 343 million people across the region, boosted by the recent inclusion of the Democratic Republic of Congo (DRC) and Somalia.

“Uganda’s membership in the African Continental Free Trade Area (ACFTA) further enhances the appeal of producing goods locally, as they can be exported freely across the continent,” he added.

Additionally, Malinzi called attention to the Mutual Recognition Agreement (RMA) signed by Uganda and China in 2021, urging both nations to implement it by ensuring that Advanced Economic Operators (AEOs) on both sides receive preferential treatment in customs procedures. This initiative, he said, would streamline trade and create more opportunities for businesses in both countries.

By Dismas Nuwaine