Fahad Ssensuwa, the Africa EXIM bank lead person in East Africa, says the initiative, among other objectives, wanted to bring back international financing institutions that had left the African continent on grounds that it was hard and expensive to get information from the businesses in Africa.
The African Export – Import Bank (Exim Bank) is embarking on registering all companies and traders on the African
continent under one platform as a means of easing information access required
for business transactions.
Under this system all business
details will be registered, verified and then published on the MANSA platform
for accessibility by those interested to transact business with a given
trader or company at both continental and beyond.
Fahad Ssensuwa, the Africa EXIM bank
lead person in East Africa, says the initiative, among other issues, wanted to
bring back international financing institutions that had left the African
continent on grounds that it was hard and expensive to get information from the
businesses in Africa.
//cue in;’’To bring back…
Cue out…the banks ‘’//
//Cue in;’Mu 2015 banks …
Cue in…zaffe entini’’//
Ssensuwa says these international
banks feared risks that would come out due to lack of credible information
including fraud, money laundering hence leaving the continent. This left some
banks and organisations lacking funding.
Now the African Exim bank, a
continental trade finance bank, is looking at this system as a source of
information which can be used by these international financing institutions
The required information is
registration status of the business, owners, shareholders, directors, location,
size of business, goods, compliance level (here the businesses will be required
to fill in a questionnaire) , name of the business company and all other
information that describes the business clearly.
Already some banks intending to
benefit from the initiative have joined the platform and among them is Absa
Bank Uganda limited, DFCU bank, Cairo bank, Opportunity bank, Ecobank Uganda,
Finance Trust bank, NCBA bank and Tropical bank.
Francis Kisirinya, the Acting
Executive Director Private Sector Foundation Uganda -PSFU says they will be
mobilizing all the business community in Uganda to tap into this opportunity.
He says working together with the
East African Business Council they will be sensitizing the business community
in Uganda to register all the required data about their business in a
transparent manner to efficiently qualify for the platform and its benefits
like the wide market opportunities.
//cue in;’’Its very important…
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Kisirinya assured the business
community that the platform is intended to facilitate trade on the continent
and not for any other reason .He says several business people have a thinking
that business data is always collected for government taxing .
He also adds that the are targeting all the traders who will be found meeting the required standards in the country as the registration has no limit in numbers.
John Bosco Kalisa, the Chief
Executive Officer East African Business Council -EABC says the initiative
should be a drive to the African Free Trade Continental Area treaty that will
see African countries transacting business without import taxes.
He adds that the platform is
critical as with its information available products will be tracked to their
origin which is one of the key issues in the treaty.
Meanwhile Ssensuwa also indicates
that all the businesses that will be verified and registered on the MANSA
platform will get an opportunity to transact their cross border businesses
without being required to carry out foreign exchange.
He explains that the system is
ensuring that all the business transactions are directly carried out through
the commercial banks, which banks will also be on the same platform and there
will be no need for exchange of currency.
//cue in;’’First of all…
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Ssensuwa says the panAfrican payment
and settlement system will help the traders to reduce the costs and time spent
exchanging local currencies to foreign exchange before transacting any cross
Here traders especially the Small
and Medium Enterprises -SMEs will be required to use the registered commercial
banks and telecom companies on the system and pay the required money for the
transaction and then it will be the bank to ensure that the other party also
receives the money in their local currency without any additional fees from the
initial amount of the transaction process.
//cue in;’’Neyo system…
Cue out…sente nnyingi’’//
Issa Ssekitto, the Kampala City
Traders Association Spokesperson an Association an umbrella for the business
community with over 20,000 traders, says the arrangement sounds good but they
will wait for the official launch of the initiative to be able to understand it
‘’Our Association has both importers
and exporters who will be potential target for the initiative however, we
should wait for its official launch for a better understanding
appreciation,’’ says Ssekitto.
The MANSA online system will officially
be launched in Uganda on October 20, 2021 at Serena hotel in Kampala.