1Therefore I exhort first of all that supplications, prayers, intercessions, and giving of thanks be made for all men, 2for kings and all who are in authority, that we may lead a quiet and peaceable life in all godliness and reverence. 3For this is good and acceptable in the sight of God our Savior, 4who desires all men to be saved and to come to the knowledge of the truth.
1 Timothy 2:1-4
Main Prayer Focus of the Week:
- That God will enable Government to fill its divinely ordained role of maintaining security and order, without which business cannot thrive.
- That Government will play its role in promoting good and punishing evil.
- That God will enable the appointing authorities to appoint upright leaders and shun corrupt leaders
- For an overhaul of the Civil Service and the establishment of a system that is business friendly, accountable and corruption averse.
- The establishment of righteousness, justice, mercy, and truth as the pillars of governance all across the country
- That God will raise up righteous leaders in business and industry
THE ROLE OF GOVERNMENT IN BUSINESS AND ECONOMY
Business is the main component in building the economy. Governments create the environment in which businesses operate through the policies they make and enforce. When a government is functioning properly and creates a conducive environment, businesses become profitable and bring prosperity to the people and the government by improving the quality of life, generating employment, reducing poverty and distributing income. If the environment is not healthy, doing business becomes difficult, businesses struggle and even fail, investors leave the country, and both the people and government are losers. A government plays key roles in economy and business in addition to sustaining law and order, protecting a country from external attacks, providing social security, taking care of public utilities and maintaining peace within a nation.
To foster the growth of the economy, governments must be intentional in improving international competitiveness, rapid modernization, and sustainable growth. The government plays the following roles in business.
- Regulatory Role
- Entrepreneurial Role
- Promotional Role
- Planning Role
- Regulatory Role:
The regulatory role is carried out by measuring and controlling the limits of the Private Sector. Regulation is done to encourage citizens to set up businesses, to spread out the growth around a country and ensure that a few companies do not dominate. In regulation, the government standardizes the code of conduct, norms, and rules in the domestic environment. When governments are functioning properly, the control of business and economic activities happens in such a way that it benefits the society. Regulation involves:
- Price control,
- Control of import and export
- Foreign exchange control
- Adding restrictions on foreign trade
- Industrial licensing etc.
The Government of Uganda plays the important role of controlling the overall financial system in Uganda through independent regulators in the field of banking, insurance, capital markets, etc.,
- Entrepreneurial Role:
In the entrepreneurial role, the governments act as entrepreneurs and participate in economic activities through ownership in the form of public sector ventures. Sometimes the private sector is unable to establish its venture in some area due to constraints like lack of capital, lack of know how or restrictions by the government. In this, the government performs the entrepreneurial role by entering the market with its ownership through the public sector. The entrepreneurial role of government is encouraged due to the following reasons:
- For social welfare
- For balanced regional growth
- For capital intensive growth
- For providing consultancy to private sector
- Promotional Role:
In the promotion role, governments support business activities by promoting a better business environment, advanced infrastructure, offering various incentives to endorse economic activities in the business. This role includes ensuring there are proper roads, transportation, communication, power supply, financial institutes, banking, capital markets for coordination among various sectors. In the promotional role, the government
- Provides necessary infrastructure for smooth functioning of business activities
- Provides coordination among public, private, joint and cooperative sectors
- Ensures balanced growth among all sectors
- Creates a business atmosphere that is intolerant of corruption
- Planning Role
Governments have a planning role ensure optimum utilization of resources. Wise planning enables the increase of the productivity, the achievement of high per capita income and national income, the generation of employment, the reduction of inequality among different sections, and the attainment of greater social justice.
INSTITUTIONS PRAYER FOCUS FOR WEEK THREE
Pray for these institutions using the prayer guidelines in Chapter One:
- Bank of Uganda and the Banking Sector
- Capital Markets Authority
- The Civil Service
- Kampala Capital City Authority, & other Municipal Authorities
- Micro Finance Institutions & Enterprises
- Ministry for Investment and Privatization
- Ministry of Finance, Planning, and Economic Development
- Ministry of Works and Transport
- National Planning Authority (NPA)
- National Information Technology Authority (NITA)
- Private Sector Foundation (PSFU)
- Uganda National Chamber of Commerce and Industry
- Uganda Investment Authority (UIA)
- Uganda Manufacturer’s Association
- Uganda Revenue Authority (URA)
- Uganda Securities Exchange (USE)
Additional Information on some Institutions
BANK OF UGANDA
The Bank of Uganda (BoU) is the Central Bank of the Republic of Uganda. It was opened on the 15th August 1966. It is 100% owned by the Government of Uganda, but it is not a government Department. Bank of Uganda conducts all its activities in close association with the Ministry of Finance, Planning and Economic Development (MoFPED). Bank of Uganda is responsible for monetary policy and maintaining price stability.
Pray for the Bank of Uganda to fulfill its mandate in managing the monetary policy of Uganda:
- Price stability
- Controlling bank credit
- Promotion of fixed investments
- Promotion of exports
- Equitable distribution of credit
- Promoting efficiency
MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT
The Ministry of Finance, Planning and Economic Development plays a pivotal role in the coordination of development planning; mobilisation of public resources; and ensuring effective accountability for the use of such resources for the benefit of all Ugandans. It derives its mandate and functions from the 1995 Constitution of the Republic of Uganda and other related laws, including; the Budget Act (2001), the Public Finance and Accountability Act (2003) and acts establishing agencies and auxiliary organisations.
Role and Mandate of MoFPED
- Overseeing national planning and strategic development initiatives for economic growth;
- Budget preparation – mobilizing local and external resources for public expenditure; Budget execution – managing and sustainably controlling public finances; and
- Reporting and accountability
Pray the Ministry will achieve its vision of achieving the fastest rate of economic transformation among the emerging economies.
Pray that it will carry out its mission of:
- Formulating sound economic policies that enhance stability and development
- Maximising revenue mobilization: local and external financial resources for public expenditure
- Regulate financial management and ensure efficiency in government spending.
- Ensuring efficient allocation and accountability for public resources to achieve the most rapid and sustainable economic growth and development
- National planning and strategic development initiatives for economic growth
- Unplanned borrowing
UGANDA REVENUE AUTHORITY
The Uganda Revenue Authority (URA) was established by the Uganda Revenue Authority Statute of 1991 and set up in September of the same year as a central body for assessment and collection of specified revenue, to administer and enforce the laws relating to such revenue and to provide for related matters. This statute incorporated all the laws that were in force then regarding tax collection.
Pray that URA will fulfill its mandate of
- Assessing, collecting and accounting for Central Government Tax Revenue (including Non-Tax Revenues)
- Advising government on matters of policy relating to all revenue sources.
- Cultivating a taxpaying culture through provision of reliable services, leadership development, and building strategic partnerships
- Corruption in the tax collection systems
- Unfair tax policies that target just a few citizens. Pray for a just tax system that is contributed to by all citizens
- Harassment of compliant tax payers
THE UGANDA NATIONAL CHAMBER OF COMMERCE AND INDUSTRY (UNCCI)
Uganda’s economic policy focuses on promoting private-sector led economic growth in such a way that growth leads to a reduction of absolute poverty in the country
A chamber of commerce is a voluntary organization of citizens involved in Commerce and Industry. It serves two primary functions:
- Speaking and advocating for the business and professional community and translating the group thinking of its members into action. This includes advocating for appropriate economic policies and interventions that encourage a favorable business and investment climate
- Providing specific services of a type that can be most effectively rendered by a community organization both to its members and to the area as a whole. Chambers of Commerce work with their members to enhance their capacity to grow and run efficiently.
The Uganda National Chamber of Commerce and Industry (UNCCI) is the oldest nation-wide umbrella organization for the private sector in Uganda. It was created by the business community in 1933 as a membership organization to guard their interests, at the time of anxiety caused by the great depression of the 1930s, and thereafter the Second World War.
It suffered a setback with an economic collapse following the 1972 expulsion of Ugandans of Indian origin by Idi Amin. It was reconstituted in 1978 and registered as a company limited by guarantee without share capital, guided by a set of by-laws enshrined in articles and memorandum of association.
Other chambers of commerce include:
- The China Enterprises Chamber of Commerce in Uganda (Founded in March 2009 by Chinese investors and consisting of 83 firms as of 2016).
- Uganda Manufacturer’s Association
- Indian Business Community
Pray that more Chambers of Commerce will be set up to:
- Providing the business community with influential local, regional and global networks for business growth.
- Strengthen the private sector in Uganda, through emphasis of trade promotion, industrial development, effective advocacy for sustainable economic policies, and a promoting a conducive climate for economic development.
Pray that members of the Body of Christ in the business sector will arise and awaken to their calling to work together to bring the Kingdom of God to the national economy. Pray that a strong network of members of the Body of Christ in the business sector will be formed.
- The increased participation of the private sector in human resource planning
- The identification by public and private sectors jointly of the subsectors where Uganda can complete globally, places where it has domestic and regional demand and where a large number of jobs can be created
- Increased access to finance for businesses through a reform to the banking sector. The current interest rates charged by commercial banks are prohibitive for the promotion of business and the low-interest rate loans like Islamic banking ones come with strings attached.
- A strong government hand in restraining and stamping out corruption, which frustrates efforts to improve business and substantially increases the cost of doing business. A few benefit at the expense of the majority of the population.
- The curbing of bureaucracy and red tape that stand in the way investments, business, and commerce
- Stronger collaboration between the private and public sectors.