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Ease of Doing Business in

Uganda

Uganda Download Profile (1776.3KB, pdf)
Region Sub-Saharan Africa
Income Category Low income
Population 39,032,383
GNI Per Capita (US$) 670
City covered Kampala

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 115 116 up
1
57.77 57.10 down
0.67
Starting a Business 165 162 down
3
71.30 69.26 up
2.04
Dealing with Construction Permits 151 153 up
2
57.19 56.42 up
0.77
Getting Electricity 161 168 up
7
44.78 42.61 up
2.17
Registering Property 116 118 up
2
55.81 55.38 up
0.43
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 106 101 down
5
50.00 50.00
-
Paying Taxes 75 76 up
1
74.71 74.18 up
0.53
Trading across Borders 136 141 up
5
58.90 57.78 up
1.12
Enforcing Contracts 64 63 down
1
60.60 60.60
-
Resolving Insolvency 111 104 down
7
39.40 39.80 down
0.40

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank: 161

DB 2016 Rank: 168

Change in Rank: up7

DB 2017 DTF (% points): 44.78

DB 2016 DTF (% points): 42.61

Change in DTF (% points): up2.17

STANDARDIZED CONNECTION
Price of electricity (US cents per kWh): 22.7
Name of utility: Umeme
City: Kampala
Indicator Uganda Sub-Saharan Africa OECD high income
Procedures (number) info_outline 6.0 5.3 4.8
Time (days) info_outline 66.0 120.4 76.2
Cost (% of income per capita) info_outline 8,449.0 3,872.5 62.5
Reliability of supply and transparency of tariff index (0-8) info_outline 4.0 0.6 7.5
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Submit application letter to UMEME and await site visit

    Agency: UMEME

    Licensed contractor, with valid Installation permit from Electricity Regulatory Authority (ERA) on team provides a wiring certificate, confirming that all wiring has been done as per code. Application form will include details such as name, zone, type of service; whether domestic, commercial or otherwise, telephone number etc. The passport size photo and the Wiring Certificate will be attached to this form. The customer is also required to sign a declaration form at the back of the application form. This form states the conditions of supply. Where Way-Leaves are required, the letter of consent will be issued and both the person authorizing and the prospective customer will be required to sign on it. If it’s a company, the company official stamp will suffice instead of a passport photo; There is a requirement for a simple location sketch of the premises highlighting nearby other major known installations.
    7 calendar days UGX 0
    2

    Receive external site inspection by UMEME and await estimate

    Agency: UMEME

    Umeme inspects the premises of the client to verify the requirement and the existing infrastructure. There is a specific inspector/surveyor for industrial connection. There is only one to cover all the country. There are 6 others who cover the 6 regions of Uganda for simple connections. The surveyor draws the route of the power lines. Since there is no planning of the city, there is some delay in determining the roads as it often cross private property. In that case, Umeme helps the client to obtain a way leave.
    Umeme receives around 30 requests by month; amongst them 10 require the surveyor. Once the route is determined, the surveyor lists the required materials and does the drawings for the extension of the MV network. The costing is then done by planning engineers for the low voltage and by the central planning department for the medium voltage. The quotation is then given to the customer with the list of materials and the labor costs for the connection. The customer can now choose an electrical contractor to do the works. There is a list of prequalified contractors by Umeme. There have been over 40 contractors approved in the past years.
    15 calendar days UGX 118,000
    3

    Hire private electrical contractor to carry out external works

    Agency: Electrical Contractor

    The approval of the plans is done at the planning department. Once the plans are approved, the contractor starts the construction of the connection. The approval of the plans is very fast as the contractors have been working closely with the planning department.
    Once the construction begins or the contractor notifies the planning department who will transmit the file to the local office.
    30 calendar days UGX 150,800,000
    * 4

    Obtain test of distribution transformer by UMEME

    Agency: UMEME

    The client has to bring the transformer to Umeme workshop in order to test it.
    7 calendar days UGX 800,000
    5

    Submit inspection fee to UMEME and receive internal wiring inspection

    Agency: UMEME

    This is the fee for the site inspection, and needs to be paid at the utility in cash. The installation inspector/surveyor will visit the site to verify whether the wiring conforms to the requirements of the company. This will take about 3 days. The customer pays for inspection fee to the Utility company and you be allocated an Engineer who handles the file within a period of one week. This is paid to the Utility company cash office.
    7 calendar days UGX 250,000
    6

    Receive meter installation and electricity flow from UMEME

    Agency: UMEME

    All payments made in cash at the utility, at the bank counter. Two separate payments are made – one for capital contribution and one for security deposit and the two receipts are then given at respective counters in the utility. Once all payments are made, the utility gives an account number and instructions are sent to connections department. Cost breakdown is as follows: One pole service 3 phase, the cost varies depending on the distance, security deposit, transformer structure; Distribution transformer; LV Cable cost; and labor cost of transformer structure. Utility conducts all external connection works and meter installation.
    7 calendar days UGX 5,007,972.21

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer
    Reliability of supply and transparency of tariff index (0-8) 4.0
    Total duration and frequency of outages per customer a year (0-3) 0.0
    System average interruption duration index (SAIDI) 50.22
    System average interruption frequency index (SAIFI) 27.81
    Mechanisms for monitoring outages (0-1) 1.0
    Does the distribution utility use automated tools to monitor outages? Yes
    Mechanisms for restoring service (0-1) 1.0
    Does the distribution utility use automated tools to restore service? Yes
    Regulatory monitoring (0-1) 1.0
    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
    Financial deterrents aimed at limiting outages (0-1) 0.0
    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
    Communication of tariffs and tariff changes (0-1) 1.0
    Are effective tariffs available online? Yes
    Link to the website, if available online http://www.umeme.co.ug/help-centre/downloads/tariff.html
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 22.7

    Note:

    If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

    If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.