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SECURITY & POLICY

Germany suspends

trade promotion
programmes for Iran

Germany has from the start of the new year sus-
pended its trade promotion programmes for
Iran amid the anti-regime protests in the coun-
try that have been met with a bloody crackdown.
The German economy ministry referred
to the “very serious situation” in Iran when
announcing the suspension.
The suspension will impact loan and invest-
ment guarantees opened up in 2016 after the
signing of the nuclear deal, or JCPOA, by Tehran
and major powers. The guarantees have, how- 300 companies registered their interest to reval- According to the Bank of Uganda, FDI grew
ever, been dormant since at least 2019, according idate their prequalification status and submit to $474.8mn (UGX1.769 trillion) in the quar-
to the economy ministry. There will be human- Statement of Qualification (SOQ) as existing ter while there was an 18% slowdown in capital
itarian exemptions under the suspension plan, bidders and new participants, respectively. outflows to $227.6mn (UGX845.8bn), signaling
it added. Following successful conclusion of the SOQ a return of investor confidence.
Germany’s trade promotion agency, Ger- evaluation exercise conducted by the Bid Evalu- “The increased inflow was on account of a
many Trade and Invest, and Germany’s business ation Team (BET), a total of 139 Applicants were drawdown on deposit to a tune of $125.8mn
promotion office in Iran have “reduced their deemed successful and awarded the Qualified (about UGX468.7bn),” the central bank said,
activities to a minimum,” according to the min- Applicant status in line with the provisions of noting that monetary policy tightening in big
istry’s statement. the RFQ. economies in late 2022 had triggered offshore
German-Iranian trade totalled €1.76bn To that end, and in consideration of Section investors’ exit from domestic debt securities in
($1.9bn) in 2021. 105 (2) of the PIA and similar provisions ena- favour of safe and increased yields in advanced
bne/IntelliNews, 02 January 2023 bling the Commission in that respect, the Com- economies.
mission hereby publishes the list of Qualified The Bank of Uganda further noted that an
Announcement of Applicants who will proceed to the Request for Ebola outbreak during Q4 2022 had impacted
Proposal (RFP) phase of the NGFCP 2022.
tourism receipts, which dropped by 30.7%, with
successful applicants for of the Commission, I heartily congratulate all “Ebola is expected to continue weighing
On behalf of the Board and Management the fallout likely to continue in the near term.
RFQ phase of Nigerian Gas successful applicants and enjoin them to follow down tourism inflows, while high government
expenditure on imports and debt service obliga-
through with the subsequent stages of the Pro-
Flare Commercialisation gramme towards becoming a Permit Holder/ tions will likely constrain reserve build-up, fur-
Flare Gas Buyer in line with the applicable ther weakening Uganda’s balance of payments
Programme 2022 statutes. All Qualified Applicants shall receive position,” it said.
According to the World Bank, even before
further communications via their respective
The Nigeria Upstream Petroleum Regulatory contact addresses and the NGFCP portal (ngfcp. the coronavirus (COVID-19) crisis, Uganda was
Commission (NUPRC) is pleased to notify nuprc.gov.ng) accordingly. performing below other Sub-Saharan African
all Interested Parties, Registered parties, the NUPRC, 06 January 2023 countries, with FDI averaging 4% of GDP over
investor community and the general public of the past decade, while the regional average was
the conclusion of the Request for Qualification Uganda’s FDI up at 5.5% of GDP.
(RFQ) phase of the Nigerian Gas Flare Commer- Foreign investments are concentrated in
cialisation Programme (NGFCP) 2022 in line 35% in Q4 2022 on extractives with almost 55% of FDI between
with the accelerated delivery schedule. 2008 and 2017 going to the sector. This reliance
You may recall that in furtherance to the oil sector activity on commodities also contributed to the steep
Petroleum Industry Act 2021 (PIA), the NGFCP decline in FDI between 2019 and 2020, when
was restructured for enhanced value to inves- Uganda registered a 35% growth in Foreign Uganda experienced a 35% decrease as COVID-
tors, following in-depth assessment of current Direct Investment (FDl) in the last quarter of 19 hit the country.
industry gas flaring situation and prevailing 2022, supported by increased activity in the oil Meanwhile, during Q4 2022, according to the
operational realities, coupled with changes sector, according to the central bank. central bank, Uganda’s current account deficit
in the socio-economic landscape since the The heightened activity in the sector relates also widened, both on an annual and quarterly
NGFCP was initially conceived. Consequently, to the East Africa Crude Oil Pipeline (EACOP), basis, by $112.7mn (to $3.9bn) and $41mm (to
the Request for Qualification (RFQ) was issued the midstream component of the Lake Albert $1bn), respectively, due to an 18.5% decline in
to enable Interested Parties register their interest Development Project (LADP), a $10bn initiative trade balance and a 25.9% rise in the services
to participate on the Programme. that aims to monetise Uganda’s as-yet untapped deficit.
The Commission is pleased to announce that crude oil resources. bna/IntelliNews, 05 January 2023

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