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News analysis Health Business

$3.55 billion Odinga swears in as ‘Panty Condom’ hits Rough terrain for lebrating
pipeline deal ‘People’s President Ugandan market Pioneer Easy Bus Ce

Issue No. 506 Feb 02 - 08, 2018 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Years

The fall of Kayihura's men


How the war between Kayihura
and CMI crashed Boda Boda 2010

www.independent.co.ug
Happy 32nd NRM Anniversary
“The NRM Government is committed to improving electricity
generation and supply to support industrialisation as well as ensuring
universal access to affordable, reliable and modern energy. We have
already made commitments at regional and international level to improve
electricity generation and sharing among partner states through the
Eastern Africa Power Pool (EAPP) in a bid to rationalise the generation
H.E
H.EYoweri
Yoweri K. K. MUSEVENI
MUSEVENI Dr.
Dr. Eng.
Eng. Harrison
Harrison E.
E. MUTIKANGA
MUTIKANGA
Preseident
Preseident of
of the
the Republic
Republic of
of Uganda
Uganda Chief
Chief Executive
Executive Officer
Officer and use of modern energy.” - Page 236, NRM Manifesto 2016 -
2021

183MW
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Isimba Hydro
Hydro Power
Power Project
Project (Commissioning
(Commissioning date:
date:August,
August, 2018)
2018) 600MW
600MW Karuma
Karuma Hydro
Hydro Power
Power Project
Project (Commissioning
(Commissioning date:
date: December,
December, 2018)
2018)

The Board, Management and Staff of UEGCL VISION


congratulates H.E Yoweri Kaguta MUSEVENI, To be one of the leading power producers in the Great Lakes
President of the Republic of Uganda, NRM Region
government and the People of Uganda on this
MISSION
occasion to mark 32 years of NRM. We also
To sustainably generate reliable, quality and affordable electricity
commit to staying true to our Mission of sustainably for socio-economic development.
generating reliable, quality and affordable electricity
for socio-economic development.
Generating for Generations.

Uganda
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Generation Company
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Issue No. 506 Feb 02 - 08, 2018

The Week The Last Word Analysis Business Arts &


Culture
4|Shs100bn Losing my 14|$3.55 billion 21|Rough terrain
industrial pipeline deal: for Pioneer Easy
skilling centre innocence: Contractor, gov’t Bus: Creditor plan
43|Top five
artists on the
launched How my offer pointers, urge to auction buses
Kampala Art
hubris to suppliers to get to recover Shs 151
Scene
4|Police ready mn debt
open fresh become
investigation president of
into former Uganda pulled 24|Uganda could
Crane Bank staff 16|Uganda’s
me from the hire expatriates
43|Kia
faltering fight for oil jobs:
trees of utopia against poverty Kigumba reveals
4|US, AU pile to the hard Petroleum upgraded
K5 sedan
pressure on South rock of reality Institute has
Sudan leaders trained just
133 locals with
certificates and
diplomas in oil
and gas

STRATEGY & EDITORIAL DIRECTOR: Andrew M. Mwenda WRITERS:Ronald Musoke, Flavia Nassaka, Ian Katusiime,
MANAGING EDITOR: Joseph Were Agnes Nantaba, Agather Atuhaire, Julius Businge.
INVESTIGATIONS EDITOR: Haggai Matsiko DESIGN/LAYOUT: Sarah Ngororano, Harriet Jamwa.
BUSINESS EDITOR: Isaac Khisa
PHOTOGRAPHER: Jimmy Siya

PUBLISHER: Independent Publications Limited, Plot 82/84, Kanjokya Street, P. O. Box 3304, Kampala, Uganda
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circulation@independent.co.ug | Website: www.independent.co.ug

2 Feb 02 - 08, 2018


Offline

Allen Kagina, the


Executive Director
UNRA, briefs the press
on Jan. 24 about
UNRA’s 2018 plans on
road maintenance and
development programs
for road networks.
She said a total of 27
road projects (1,964km) “Please continue and do not speak back at
have their designs
ready and waiting
me. In case you are used to speaking back
allocation of funds in at Africans, think again.”Justice Catherine
this FY.   INDEPENDENT/ Bamugemereire, chair of the land commission
JIMMY SIYA
inquiry to Parful Patel, Mbale businessman
during a hearing

Charles Wana Etyem,


(L) Chairman Makerere
University Council
talks to Stephanie
Rivoal, the French
Ambassador to
Uganda during the
grand opening of
Campus France
Uganda academic
programs at Makerere
University on Jan
“I love [Donald] Trump because he
30.   INDEPENDENT/ speaks to Africans frankly”President
JIMMY SIYA Museveni

President Museveni, being


welcomed by Elly Karuhanga,
(2nd) chairman Uganda
Chamber of Mines and
Petroleum during a forum on
skilling and local content at
Sheraton Hotel on Jan 23 .

“The Inspectorate of Government has


150 technical staff; how do you expect
them to fight corruption in 113 districts
and with only 16 regional offices?” IGG
Irene Mulyagonja

Chinese construction employees who were Extra money needed


5 companies that were
summoned by PPDA 50 conned by a fake
Turkish investor in Shs90b for completion of
Nile Bridge in Jinja
over fraud Kampala district

Feb 02 - 08, 2018 3


week

Kutesa meets German Ambassador Albrecht Conze


Ambassador
Conze (L)
delivered
a special
invitation to
Sam Kutesa,
Minister
for Foreign
Affairs, to
attend the
Berlin Energy
Transition
Dialogue
2018, which
will be hosted
at the Federal
Foreign
Office in
Berlin in
April.

Shs100bn industrial Police open fresh investigation into former Crane Bank staff
skilling centre launched The Police have opened
A National Industrial Skills and Train- fresh investigations into
ing Centre has been launched in Namanve fraud at the defunct Crane
Industrial Park to boost employment and Bank and summoned
industrialisation. The project is being two of the bank’s former
funded by the Chinese at a cost of $30mil- Information Technology
lion (108billion) and will run until the end (IT) staff. Zaki Syed,
of 2019. The facility consists of 17 blocks, a senior IT manager
a manufacturing and electrical centre and and Samuel Mutunga,
the government is hailing it as a centre as another IT manager
a mechanism for reduction of poverty and were summoned by
promotion of inclusive economic growth. Criminal Investigations
The project is contracted to Chinese Department (CID) over a highly debated issue. software and hardware
contractor Jiangsu Jiangdu Construction hardware and software A letter summoning the supplied by Technology
Group Company which started work in procurements. A total of two officials signed on Associates and its
November last year. President Museveni, Shs400billion was lost in behalf of CID Director principals to Crane Bank
in a speech read out by Prime Minister
various transactions Crane Grace Akullo by in March and September
Ruhakana Rugunda, said the project is
Bank was involved in. The William Kototyo, senior 2013 supported with
intended to address the issue of appro-
bank was eventually sold commissioner of Police, evidence of installation,
priate technology and human capital by
to DFCU bank although read “They should invoice and payment”
introducing modern methods and prac-
the sale itself remains report with details of the
tices for machining and manufacturing.

*terms and conditions apply

Dial *134 * 7#
4 Feb 02 - 08, 2018
Week

Salim Saleh under fire over sand mining


Gen Salim Saleh, environmentalists to commander to explain
national coordinator stop harassing Mango his comments, which
of Operation Wealth Tree Group, a Chinese they deemed harmful
Creation and President company dredging to the environment.
Museveni’s brother has up part of Lake There has been
been criticized for his Victoria. Following growing concern over
comments, encouraging his comments, sand mining on the
the various sand The Parliamentary lake which has seen
mining activities Committee on Natural both local businessmen
happening in Lake Resources summoned and foreign contractors
Victoria. Saleh told the former army take part in the activity.

US, AU pile pressure on South Sudan leaders Red Pepper back


The African
Union has joined After a two month shut-
the United States in down, Red Pepper, a tabloid
considering sanc- newspaper, is back on the
tions against those stands in Kampala and across
blocking peace the country. Its first edition on
in South Sudan. Jan 29 after the shutdown read
African Union ‘Our Story’ and was bent on
chief Moussa Faki explaining its side of the story.
Mahamat said President Museveni pardoned
that “the time has the directors and editors of
come” for sanctions Red Pepper after a meeting at
Salva Kiir Nikki Haley
as a way of ending State House Entebbe where
war in the central he cautioned them to be more
Haley, who has peace. Haley visited
African country. professional in their work. Red ing war between Uganda and
repeatedly spoken South Sudan in
Mahamat made the Pepper put out a statement after its south eastern neighbor,
out against South October last year
announcement at the meeting at State House, Rwanda. The directors and edi-
Sudan president where she strongly
the opening of the “The Directors and Senior tors were charged with libel and
Salva Kiir. Haley criticized Kiir.
30th annual African Editors pledged to the Presi- offensive communication. It is
told the UN Secu- South Sudan has
Union summit in dent and the nation, a more widely expected for the charges
rity Council that been at war since
Addis Ababa, Ethi- transformed and professional to be dropped. African Centre
Kiir’s government December 2013
opia. His comments publication going forward.” for Media Excellence, a media
was “increasingly when forces loyal to
rhyme with those On Nov 21, Police shutdown NGO, said it was “disturbed”
proving itself to be former Vice Presi-
of the US Ambas-
an unfit partner” dent Riek Machar the offices of Red Pepper after by the manner in which the tab-
sador to the United
in efforts to restore and those of Kiir it published a headline incit- loid was re-opened.
Nations, Nikki

Cheers over first bypass heart surgery at Uganda Heart Institute


Doctors at the Uganda the lead consultant
Heart Institute regis- cardiothoracic surgeon,
tered a milestone when said the surgery was
they conducted the first made possible after the
ever highly specialized heart institute acquired
bypass heart surgery advanced equipment. He
on a Ugandan patient, told Daily Monitor in an
Edward Kayondo. A interview: “The coronary
team of 14 Ugandan artery bypass grafting
medics comprising car- is done in three stages;
diologists, perfusionists, one involves transferring
anesthesiologists and grafts from one part of
theatre nursing officers the body. The grafts are
took part in the opera- veins that we get from
tion that lasted 10 hours. the legs and arteries from
Dr William Manyilirah, behind the breastbone.”

Feb 02 - 08, 2018 5


Week
AU rocked by China
spying allegations
The African Chinese servers
Union has for five years.
been rocked by The newspaper
allegations that reported
China bugged that after AU
the building discovered the
that houses the bugs, it ordered
headquarters for a clean
of the African sweep of the
Union in Addis entire building.
Ababa, Ethiopia. However AU
The headquarters Chairman
Unrest after Boda Boda 2010 crackdown were built by Paul Kagame
China and downplayed the
The arrest of Abdullah Kitatta, the leader after they raised issues against the latter opened in incident and
of of Boda Boda 2010, an association of group. “That talk of ‘above’, behaving with 2012. A French wondered why
boda boda riders registered in 2010 seems impunity has no place in Uganda today. newspaper, Le the continent
to have created more unrest and confusion I want to see he who calls himself big Monde, reported allowed outsiders
in the boda boda community. Rival boda -Godfather to Kitatta- to come out” he was that various to put up the
boda groups launched reprisal attacks on quoted. The comment was interpreted as
AU officials building. “We
Boda Boda 2010 claiming the latter group a jibe at Police boss Kayihura who praised
said data from should have built
was responsible for robberies, violence Kitatta, a week before he (Kitatta) was
computers in it ourselves,”
and killings in Kampala. Recently, Lt. Gen. arrested. Meanwhile on Jan. 24, Mwanga
the building had Kagame said.
Henry Tumukunde, Minister for Security, II Magistrates Court remanded 8 boda
been transferred
met 17 boda boda groups in Kampala and boda riders, (rivals to Boda Boda 2010) over
called on those who are behind Boda Boda criminal trespass and malicious damage. every night to
2010 to come forward and they face off

Former Nansana Police boss Kirumira charged with torture, extortion


Buyende District Police Com- Police headquarters in Naguru, he reportedly paid Shs4.8million.
mander (DPC) Muhammad Kampala. Senior Superintendent However some sources say there
Kirumira is facing six charges of Police Catherine Kusemer- could be a witch-hunt stating that
for crimes he allegedly commit- erwa, as prosecutor, alleged that when Kirumira was in charge of
ted while he was in charge of Kirumira used his powers as to Nansana, he had become popular
Nansana Police Station and Old torture civilians and extort money for dismantling crime rackets and
Kampala Division Police Com- from them. Kusemererwa alleged could be seen personally arrest-
mander in 2013 and 2014. The that Kirumira as Division Police ing suspects, a factor that sources
charges are torture, extortion, cor- Commander arrested Aramathan say caused his transfer. He is
ruption, bribery, unlawful arrests Kakooza and tortured him until however yet to be recalled
and excessive use of arrests. he paid Shs350, 000. She also from duty in Buyende
The Police tribunal read out the alleged that Kirumira released a since the charges were
charges to Kirumira on Jan 23 at suspect in a drug syndicate after announced.

6 Feb 02 - 08, 2018


Humour Did you know?

8% of people have
an extra rib?

Extra rib is
0n Jan. 16, Prime Minister Ruhakana Rugunda put out a notice restricting foreign
also called
travel stating that the government is spending a lot on foreign trips for public servants cervical rib ,
sometimes
known as
“neck ribs”. It
is estimated
to occur in
8% (8 in 100
people) of the
population
and it is a
congenital
Army take over fighting crime and have vowed to arrest more members of Boda Boda 2010; a group abnormality
that has been linked to robberies and murders in Kampala. The army has taken over some roles of
police, leaving people wondering whether police has failed in its duty. located above
the normal
first rib. It can
create different
problems like
chest infection,
pain in neck
and upper
arm(mostly left
side).

Senior 1 cut-offs stay high because of the improved performance across the country in last year’s PLE.

Feb 02 - 08, 2018 7


News analysis Health Business
NRM Day: Testing NRM’s big Scientists struggle Uganda’s bank for lebratin
the promises numbers bad? to find new drugs? cooperatives a reality? Ce g

Issue No. 505 Jan 26 - Feb 01, 2018


Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

Years

Should government
takeover UMEME job?
Karuma, Isimba power raises
new questions

Inbox
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http://twitter.com/#!/ugandatalks

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www.facebook.com/TheIndependentMagazineUganda
www.independent.co.ug

Letters are
welcome ! UWA’s domestic tourism initiative
The Editor welcomes short and
concise letters from our esteemed Refer to: “UWA to travel. Buses Park for example
readers on topical issues. Please boosts domestic to attractions like would be ‘miracu-
send them to:
The Editor, The Independent tourism with buses” Maramagambo, Mt. lous’ especially
Publications Ltd, (The Independent, Elgon (Kapkwata), during the rainy
P.O Box 3304, Jan.21 Online). The Queen Elizabeth season.
Plot 82/84 Kanjokya St, UWA new buses National Park (Isha-
Kamwokya. are a good gesture sha), Lake Mburo Chombo
Kampala,Uganda.
to enthusiastic National Park and
Email: editor@independent.co.ug Ugandans who wish Kidepo National

Hydro power dam puzzle Kenya Airways’ non-stop flight to New York
Refer to: “Power dams puzzle” (The Inde-
pendent Online Jan.23). Uganda used to Refer to: Kenya neer African carrier Dreamliner. For your
have annual rainfall of 2,200mm but now it Airways’s ready for that connected Africa information, Ethiopian
has dropped to 1,600mm of annual rainfall. non-stop daily flight to North America. And Airlines started its oper-
The trend is continuing given the high rate from Nairobi to New currently it reaches ation to Washington DC
of deforestation vis a vis the rate of reforesta- York (The Independent Washington DC, New in 1998.
tion. Imagine such discrepancy. With this Online Jan.13). To my York, Los Angeles and
state of affairs, Uganda will continue facing knowledge Ethiopian Canada using the ultra- Dorthy K.
interruptions in hydro electric power supply Airlines was the pio- modern fleet, B787
due to low rainfall. Therefore, we need to
have a deliberate and strong insistence on tree
planting for deliberate climate control. There German envoy’s Ugandan coffee gesture
should be a government policy with stern
enforcement and monitoring of tree planting. Coffee Development
Authority and the
Charles Muhigirwa outright capitalist
greed, all conspire to
keep me in poverty.
That is a big turn off for
Mengo Hospital surgery deaths our youth to venture
into an otherwise
lucrative farming
Refer to: “Committee to investigate Mengo venture. Right now a
deaths set up” (The Independent Online Jan. kilo of dry processed
21). Why should the minister micro-manage coffee is $1.50. I think
the health sector? There is already a deficit of that value addition to
surgeons (in the country) for such major pro- African produced items
cedures. Goodwill brings people over to help is a moral obligation for
and/or teach yet the best we do is criticize. Major humanity and a lasting
surgeries are carried out with a higher risk of Refer to: “I will a coffee farmer (typical sure way of keeping
death. Cardiac surgery is not a major cause of fight for Ugandan smallholder). Truth be “the undesirable
death. Does Parliament take note of the major coffee” (The told, it is backbreaking immigrants” out of
causes of death? What needs to be done is to Independent Jan.22). to reach the point of Europe. What a win-
leave licensing in the hands of the Uganda Med- Mr. Ambassador, your selling quality dry win solution. Uganda
ical Council. I extend my gratitude to all persons observation about coffee beans. The warmly welcomes you
who support Ugandans in any way. Do not Ugandan coffee, while vagaries of weather, the Mr. Ambassador.
despair (because) you are deeply appreciated. not new, your stated “dog eat dog” attitude
intention is noble and of middlemen, the not Joe B
Mark Yusto very considerate. I am so helpful Uganda

8 Feb 02 - 08, 2018


The Last Word Opinion

Losing my innocence
By Andrew M. Mwenda
How my hubris to become president of Uganda pulled
me from the trees of utopia to the hard rock of reality

I
want to continue with a line of thought I did extensive research in public sector Malawi, had per capita public spending
from this column last week i.e. that costs whose details would clutter this higher than that of Uganda. Yet when
African countries cannot be governed article. So I hope you just trust me. My you evaluate the outcomes of their public
using strategies Western governments annual budget came to $75 billion. services, a subject I will go into detail
employ to govern their societies. Now you may think this is too much another day, you find that Uganda per-
Government legitimacy in the West is money. Yet, when you get this $75 bil- forms as good as them and even better in
based on many things. But one critical lion and divide it by the total population many fields.
source of legitimacy is the ability of the of Uganda (39m people), you get public One could say that these are African
state to provide all its citizens with a spending per person of only $1,923. This countries with the same “vampire”
large basket of public goods and services. money is supposed to pay for universal leaders and “predatory” states as
Sadly, African nations do not have the education from primary to university, Uganda. So I decided to find out when
money to govern that way. universal healthcare, roads, bridges, elec- the USA had the same per capita public
I want to make an even more contro- tricity dams, transmission and distribu- spending as Uganda. I found it was in
versial proposition: that more than the tion lines, water and sewerage, agricul- the year 1860. Total public spending
character and competences of individual ture extension services, trade, pensions by federal, state and local governments
leaders in Africa, it is the limited finan- for the elderly, justice, security, finance was $178 million. I adjusted this to 2016
cial resources that inevitably lead our industrialization, sports, build sea and prices and it came to $4.9 billion. Then
governments to rely more on patronage airports etc. I divided it by the USA population of
(to secure the cooperation of elites) and Let me ignore 2011 when I would have that year i.e. 31.4m people and it came to
repression (to coerce obedience from the become president and use the 2016/17 $159 public spending per person. Then I
citizenry). At the risk of sounding like budget. Note that Uganda’s revenue for looked at the breakdown of the budget.
his apologist, I think President Yoweri that financial year was about $4.5 bil- Note that the USA in 1860 did not
Museveni has ruled like the late Mobutu lion, its budget was $6.7 billion and its spend a penny on pensions, health, edu-
Sese Seko of then Zaire and Kenya’s GDP was about $25 billion. If you divide cation or welfare for its citizens. How
Daniel arap Moi because of this chal- this by 39m people, public spending per was it governed? It was through a combi-
lenge than because it’s his character. person was a paltry $169. nation of patronage and repression, just
This conclusion came to me slowly and How much can anyone reading this like all the poor nations of Africa today.
painfully in 2010 when, in a moment of article do with this money in an entire Then an idea became clear to me: the
extreme hubris, I speculated on running year? Even what I had thought was postcolonial state in Africa adopted a
for president of Uganda. I believed, quite a modest budget was far beyond the governance model for legitimacy that is
stupidly I now realise, that Museveni means of my country. It became clear to not suited to her wallet. The state is over
is an incompetent manager of public me that my country simply doesn’t have developed in function but grossly under
affairs. I felt I was better. the resources to govern itself the way I developed in capacity – especially finan-
My plan was to develop a national thought it can and should. cial. So its reach is far beyond its grasp.
budget that would ensure that my gov- So I checked out the USA budget for That is why African politicians come
ernment would base its legitimacy on 2017 in large part because it is the most to power promising to deliver public
delivering a modest basket of public easily available online. It was $7 trillion. goods and services to citizens. Then they
goods and services to all citizens through Divided by a population of 320 mil- discover they do not have the capacity.
arms-length interactions mediated by lion people, it comes to $21,875 public Unable to fulfill their promises, they
public institutions. spending per person. Now remember retreat to old, traditional means of
I am aware that there are many reasons that this is public spending on a popula- managing power relations – patronage
why citizens may support a government; tion with average income of $58,000 i.e. (which we call corruption) and repres-
provision of public goods and services is many Americans do not need govern- sion (which we call dictatorship). The
only one of them, perhaps even not the ment to pay for their needs because they two twin sisters constitute what are
most important. But space does not allow have enough already. Relying on service referred to as “bad governance” in the
me to delve into this subject. I will return delivery as a governance strategy is a modern lexicon.
to the different bases of legitimacy next viable option for the USA because it can In this column next week, I will argue
week. So let me deal with my hubris of afford it. Not for Uganda. that what we call “bad governance”
running for president against Museveni. So I decided to ask myself a counter (patronage and repression) is perhaps
I decided to write a modest budget question. How are countries in Uganda’s not only the most cost efficient and cost
where public officials would be paid a income bracket governed? I looked at all effective way to govern poor nations
living wage, build roads, dams, improve of them and with the exception of post but also the only affordable governance
the textbook/teacher/classroom to pupil genocide Rwanda, I realised they are strategy available to them given their
ratio, ensure hospitals would not run out governed using the same strategies as meager financial resources.
of drugs and all the public goods and Museveni uses. In fact all the countries
services associated with a modern state. in my sample, with the sole exception of amwenda@independent.co.ug

Feb 02 - 08, 2018 9


cover story

The fall of Kayihura's men


How the war between Kayihura and
CMI crashed Boda Boda 2010
By Haggai Matsiko

The circumstances surrounding the arrest of Abdullah Kitatta, the self-proclaimed patron of
Boda Boda 2010, has become a talking point in security circles about how far the military is
willing to go to dismantle the power structure of Police Chief, General Kale Kayihura.
Kitatta, who has faced military court and was remanded together with 12 others over charges
of unlawful possession of arms, was arrested by the Chieftaincy of Military Intelligence (CMI),
an intelligence outfit of the military that now finds itself at the apex of Uganda’s ever-changing
security infrastructure.

10 Feb 02 - 08, 2018


I
cover story
nsiders say Kitatta’s arrest
followed CMI’s interrogation
of his brother, Huzair
Kiwalabye, who was picked up
in a Jan.19 sting as part of the
investigations into the murder
of Francis Ekalungar, the former
accountant of Case Clinic.
Insiders say CMI was able to locate
Kitatta’s whereabouts after getting his
brother to call him. Once he caught
wind of the impending trouble,
sources say, Kitatta made several
frantic calls. He called the Inspector
General of Police (IGP) Kayihura,
seeking protection. In turn, the IGP
called State House and the CMI boss.
At State House, the switchboard
handler didn’t offer much.
At CMI, Col. Abel Kandiho, who
heads the outfit, was not available
and instead one of his handlers
told Kayihura that Kitatta’s matter
followed orders from above.
Until recently, Kitatta, who had in
a matter of years risen from a boda
boda operative to the highest echelons
of power with direct access to both Abdullah Kitatta
President Museveni and the police
chief, was untouchable. a while ago, the group’s leader, who incessant opposition protests in
He had procured this power and appeared to have power over life and Kampala and elsewhere. Indeed,
access by controlling and organizing death, was a regular at State House. although the opposition has been
the association of boda boda riders To understand the fate of Boda Kayihura’s bitterest enemies,
and owners into a vigilante arm of the Boda 2010, one has to appreciate the indirectly they have been his allies.
police. changing power dynamics in Uganda’s The more they hated him and
Kitatta and his group would security services, which are closely campaigned for his removal, the more
scratch the police chief’s back by tied to politics. Their fate is closely Museveni felt the IGP was effective
using his group to quell opposition tied to the fate of Gen. Kayihura. and kept renewing his contract,
demonstrations, control some gangs And by extension, some claim, the making him the longest serving IGP in
and in turn, the police chief would deteriorating relations between Uganda’s history.
turn a blind eye to their activities, Uganda and Rwanda. But because of the favour he enjoyed
insiders who are critical of that Over the last decade, Kayihura has from the president and also because of
relationship claim. Kayihura, however, accumulated a lot of power. He has the power he wielded, many inside the
defended Kitatta as a resource who done this by turning the police into security and political establishment in
helped police in dealing with crime. a political arm of the ruling National Uganda wanted his position.
Now in the last minutes of Kitatta’s Resistance Movement (NRM). For years, they have been fighting
arrest, all this appeared useless. The In using the police to fortify hard to clip his wings and cut
man who bragged about direct and Museveni in power, Kayihura has been down his power. But Museveni had
unfettered access to State House, was able to successfully divert a significant remained steadfast in his support
being hunted like a rat. amount of budgetary resources to of his IGP. Yet it is apparent from
Finally, when it emerged that he the force, thereby turning it from the recent crackdown on “crime” in
had been arrested, all hell broke loose. a sidelined and weak organization Kampala that Museveni has dropped
Mobs in Kampala broke into the into the most visible institution in Kayihura. What has changed?
offices of Boda Boda 2010, burnt down Uganda’s power politics. When Kayihura’s success appeared to walk
their furniture, documents, and even Kayihura joined Police in 2005, the hand in hand with his doom.
beat up leaders of the association. police budget was under Shs70 billion, Some analysts claim that Kayihura’s
The mobs doing all this were also it has since skyrocketed to over Shs400 problem is that while he became very
carrying placards of Museveni whom billion. successful dealing with the opposition,
they hailed as their liberator from Now armed with a large array of he appeared to fail miserably at
the group. The police was armored vehicles and other anti-riot dealing with crime.
impotent and could not gear, the Uganda Police Force (UPF) Knowing that the city is teeming
stop the carnage. has been an intimidating presence. with hundreds of thousands of
Some of leaders of This made Kayihura a very powerful unemployed and frustrated youth
the association man but equally bought him very always ready to protest, Kayihura
have gone into many enemies inside and outside the adopted a policy of counter political
hiding, fearing system. mobilization by coopting some of
for their life. To protect himself, Kayihura set these youth.
Yet only out to use the police to break down He infiltrated these groups,

Feb 02 - 08, 2018 11


cover story
recruiting many to his side and
turning others into his agents inside
the opposition camp. This way,
whenever the opposition is plotting
protest, Kayihura is tipped off, well in
advance. This is the strategy Kayihura
has used to cripple the opposition in
Kampala, insiders claim.
To make it more effective, Kayihura
facilitated the formation and growth
of Boda Boda 2010. As an organized
force, it was easy to mobilize quickly
and deploy. Indeed, many times there
is a protest in Kampala and police gets
overwhelmed, police would call in the
group to help.
This strategy is neither new nor is it
unique to Uganda, some of Kayihura’s
handlers claim. For the NRM, it has
been a long and tested strategy not
only in combating urban protests but
also in containing armed rebellion.
Thus whenever the government has
faced a challenge, it has made the
civilian population part and parcel of
the defense of the government. Presidents; Museveni and Kagame in Addis Ababa, Ethiopia
For example, they claim, while
fighting rebellion in Acholi, the to get out of hand. When Assistant
government recruited a civilian militia Inspector General of Police (AIGP)

To make
called Home Guards. In Teso, they Andrew Felix Kaweesi was murdered
created the Arrow Boys. In Western in March, many pointed to rogue

it more
and Central Uganda, they created elements in police.
Local Defense Units. The NRM has The president also noted that the
also created many vigilante groups police had been infiltrated by rogue
like Civic Defence Team, Kalangala
Action Plan of Kakoza Mutale, Popular
effective, elements and starting with the murder
of Kaweesi, asked CMI to investigate
Intelligence Network (PIN) etc. All
too often, these groups have relied on
Kayihura crime.
In the same year, machete wielding
hardened criminals for leadership.
But by its very nature, this strategy
facilitated gangs sent shock waves across central
Uganda. When police carried out a
of using vigilantes to contain protests
comes with inevitable costs. For a long
the formation sting, some of the suspects said they
were working with police. As security
time, it appears Museveni and his
handlers were willing to keep a blind and growth officials were still grappling with this
crisis, a spate of women murders also
eye on the activities of these groups
even amidst public outcry. of Boda Boda engulfed Kampala suburbs.
Critics say police did not only
Many people have accused Boda
Boda 2010 of meting torture on them, 2010 appear infiltrated, it appeared
helpless.
confiscating their boda bodas and its To make matters worse for
leader of abusing access to power. Kayihura, where police appeared to be
Part of this, insiders say, is down failing, the military started delivering.
to the fact that Kayihura listened Then the president assigned them to
a lot to Kitatta. This gave Kitatta look into a complaint by UN officials
confidence to even interfere in police Kayihura’s management style denied about allegations that Rwandan
work. Police officers were afraid to him the necessary feedback loops operatives were kidnapping dissidents
act against Kitatta when he was in that would have led him to create the and taking them back to Rwanda.
the wrong because they felt he would necessary distance between himself These investigations climaxed into
report to Kayihura. Some claim and Kitatta; and then ensure police the arrest and trial of seven police
they were instances when Kayihura officers could rein in Kitatta. But officers before the General Court
would easily transfer officers on or Kitatta had also grown big with direct Martial (GCM) on Oct.27, 2017.
put them on katebe because Kitatta access to the President. The seven included; Senior
had complained. So this gave Kitatta Insiders say in meetings of the Superintendent of Police Nixon
power over police. National Security Council, the highest Agasirwe, the former commander
To this extent, critics say Kayihura security body that brings together Special Operations Unit, Senior
subordinated a professional state security chiefs from different bodies, Commissioner of Police Joel
security institution to an unruly Kayihura was often warned of rogue Aguma, the commandant of the
militia instead of vice versa. elements in police but did nothing. police Professional Standards Unit,
Secondly, critics also claim, Last year, the situation appeared Assistant Superintendent of Police

12 Feb 02 - 08, 2018


cover story

Nixon Agasirwe (left) at the General Court Martial.

Magada, crime intelligence; Benon military claiming it is investigating untenable.


Atwebembeire, Sgt Abel Tumukunde, Rwandan operatives. He instructed CMI to take over
the Kampala Metropolitan Police It is on the basis of this that some many police functions including
flying squad commander, Faisal analysts say the fall of Kayihura has arresting and detaining police officers
Katende, flying squad and Amon little to do with crime in Uganda accused of worked with Rwanda.
Kwarisima. but a lot to do with the deteriorating Being a loyal person to his
They were supposed to be 12 but relations between Uganda and subordinates who serve him loyally,
five were yet to be netted, a source Rwanda. insiders say, and knowing how much
intimated. Jonathan Baroza, the former The more these tensions have Kayihura has served him, Museveni
aide to Gen. Kayihura, was also worsened, they claim, the more it has has decided to clip his wings without
targeted. become inevitable to clip the powers firing him.
Apart from these police officers, of Kayihura. Thus, CMI and ISO have come and
the other two suspects were; a former There has always been suspicions taken over most of the security work
Rwandan soldier, Rene Rutanungira, against Kayihura whenever relations in Kampala and sidelined Kayihura
who has been living in Uganda and a between Kampala and Kigali have and the police.
Congolese national, Bahati Mugenga. soured. The IGP has confided to If Kayihura falls or is neutralized,
Reading from the charge sheet, friends before that whenever Uganda some insiders claim, it will be because
Lt. Gen. Andrew Gutti, who was and Rwanda are at loggerheads, he had also become expendable.
appointed the Chairman of the Kampala accuses him of being a mole, They claim that he will most likely
General Court Martial last year, Kigali of being a traitor. Kayihura has be removed and humiliated but the
said the officers, around October 25, a strong connection with the Rwandan strategies he employed will remain. A
2013, while in unlawful possession leadership at the highest level. new group will fill the void of the old
of firearms and grenades, ordinarily President Kagame was Kayihura’s best and its members will most certainly
a monopoly of the Defence Forces, man at the latter’s wedding. Kagame’s recruit from Boda Boda 2010 because
conveyed Joel Mutabazi a former wife used to live at Kayihura’s home their experience is invaluable.
presidential guard for Rwandan during the RPF struggle. But in this war with CMI and the
President Paul Kagame and Jackson Those who peddle this view, claim regional tensions, insiders agree,
Kalemera without their consent to that once Museveni was convinced Kayihura stands very little chance
Rwanda. that Kayihura was serving Rwanda’s just as the vigilante groups he has
Since then, the arrest of Rwandans interests, the IGP’s job became supported.
in Uganda has intensified with the precarious, his long stay at his post

Feb 02 - 08, 2018 13


NEWS ANALYSIS

Uganda is looking at building such infrastructure to commercialize her oil.   INTERNET PHOTO

$3.55 billion pipeline deal


Contractor, gov’t offer pointers, urge suppliers to get ready
By Ronald Musoke expected to do to partake of the expected is in Tanzania. Given that the whole deal is

E
billions, gloom permeated the hall. $ 3.55 billion, if Ugandans were to get deals
xcitement filled Hotel Africana’s “How ready do you think we are?” Elly on only the portion in the country, they
spacious Nile Hall on Jan.17 as Karuhanga, the Chairman of the oil and would be looking at a paltry $743.5 million.
hundreds of local suppliers braced gas investors lobby—the Uganda Chamber Patrick Odwe, a local service provider
for details about the specifics of the of Mines and Petroleum (UCMP) asked feels that this would be unfair given that
$ 3.55 billion pipeline deal contained in the rhetorically. He also noted that that Lamb’s Uganda is the source of the opportunity—
study about its engineering designs. presentation had filled Ugandans with fear the oil.
Houston-based Gulf Interstate Engineer- and that he felt they might not be “field The pipeline is set to carry oil from fields
ing (GIE) carried out the year-long study ready.” in Uganda currently being developed. So
at $ 11.5 million to guide Total, CNOOC, Karuhanga’s observation could also be far, the fields are two—the Total E&P oper-
Tullow, the Uganda National Oil Com- seen in the questions that Lamb received ated Tilenga project in Buliisa and Nwoya
pany (UNOC) and the Tanzania Petroleum from the Ugandan prospective service pro- Districts and the CNOOC operated King-
Development Corporation (TPDC) on viders. fisher project in Hoima District.
investing in the project. “Shall we be allowed to cross to Tanza- The Tilenga project will have a process-
The Africana event, officials said, was nia to do business there? How are the two ing facility with capacity of up to 190,000
intended to share findings of what is tech- countries’ standards going to be harmo- barrels of oil per day and the Kingfisher
nically called the Front End Engineering nized? Is it possible for Ugandan service project, 40,000 barrels of oil per day. These
Designs (FEED) of the pipeline with poten- providers to bid beyond Tanzania?” processing facilities will feed into the refin-
tial suppliers to help them identify and pre- The anxiety is mainly driven by the fact ery and the 1,445km pipeline terminating at
pare for business opportunities. that the portion of the pipeline in Uganda is Chongoleani peninsula near the Tanga Port
But as Mark Lamb, a jovial elderly engi- only about 296km which is about 21 percent in Tanzania.
neer at GIE delved into what Ugandans are of the entire route. The bulk of it, 1,149km It will comprise a buried insulated 24”

14 Feb 02 - 08, 2018


NEWS ANALYSIS
He said Tier-4 looks at the more technical by the international oil companies, assessed
service suppliers like Halliburton and Sch- 25 of the local industries in Uganda and also
lumberger and Tier-1 is looking at basic sup- identified what they could and could not do.
plies like labour, security, field inspections, And in 2014, a capacity needs analysis also
pipeline, safety, and electrical inspectors. put in place a workforce skills development
“This is where a lot of opportunity is,” strategy and plan and the government was
Lamb said. About 10,000 people are expect- able to set targets for foreign companies.
ed to be employed during the construction PAU has, as a result of these studies,
phase. developed the national supplier data base
“There will be early civil works (building –a platform where the PAU, the suppliers
camps, temporary and permanent roads for and the buyers (IOCs) interact. The idea
the pump stations).” is to increase the local suppliers’ visibility,
About 2.6 million cubic metres of earth efficiency in the supply chain and create fair
will have to be moved, he added and there competition.
will be need for portable power generators. So far, the database has 927 companies
There will be temporary fencing, permanent (both local and foreign registered) and more
fencing, construction labour, dry land trans- are expected to register in another window
port, and security along the pipeline. expected to open at the start of March.
“There will be need for manual, semi- Ali Ssekatawa, the director Legal at PAU
skilled and skilled camp managers, fore- noted that the disclosure of the FEED find-
men, drivers, supervisors, warehouse man- ings was intended to further help these sup-
agers, equipment operators. This meeting is pliers weigh their options in the project.
about business opportunities, so get ready, On whether Ugandan businesses would
get ready.” get deals in Tanzania, Ssekatawa said the
two governments were involved in negotia-
Opportunity galore tions with the view of standardizing the local
Irene Batebe, the Commissioner Mid- content regulations of the two countries.
stream Petroleum Department at the Min- Aheebwa also noted that the pipeline was
istry of Energy and Mineral Development a single-integrated project and discussions
explained that the Jan.17 event was intended are ongoing to open it up for service provid-
to point out to Ugandan service providers ers to cross borders.
the available opportunities for investment Aheebwa even revealed that the govern-
and supply of goods and services. ment has even ring-fenced services for locals.
“In taking forward this project the Minis- Aheebwa was referring to the 3-tier
try would like to emphasize the importance procurement process where if an
of collaboration and working in partner- international oil company is not able to get a
pipeline with an electrical heat tracing sys- ships with all stakeholders,” Batebe said. Ugandan company to do something, the law
tem associated above ground facilities, and a As part of this, she noted that the ministry requires that the foreign company partners
marine storage terminal with export facilities is in the process of putting up a national con- with the local company.
near Tanga. tent policy that will promote participation She advised the local entrepreneurs
It will start from Kabaale and traverse of Ugandan labour and enterprises in the oil to look beyond transporting between
eight districts including Hoima, Kyakwanzi, and gas industry. Mombasa and Tanga to the site.
Kakumiiro, Mubende, Gomba, Ssembabule, Peninah Aheebwa, the Director technical “Look out for foreign firms that are
Lwengo and Rakai. It will then enter Tan- support services at the Petroleum Authority coming into the country,” Aheebwa said,
zania through Mutukula to Chongoleani in of Uganda (PAU) in charge of national con- “do joint ventures and prepare so the
Tanga on the Indian Ocean coast. tent also emphasized optimal participation biggest portion of the investments on the
of Ugandans. project does not leave the country.”
Expect high standards Over the years, several studies have Lamb offered the same counsel
But rather than worry about whether focused on this. A 2011 study highlighted before exiting the podium to head to
there would be access to deals in Tanzania, available opportunities and challenges that Tanzania where he was to make a similar
Lamb appeared to urge suppliers to concen- would inhibit Ugandans from fully partici- presentation.
trate on their core competencies and create a pating in the sector. “Don’t be fearful to partake in the
track record. In 2013, an industry baseline survey done opportunity,” he said, “look at the
He said the project’s codes and standards documents and interpret the information.”
have been borrowed from best practices Douglas Evans, the Chairman of GIE
around the world to ensure safety of the described the pipeline route, which
project and that they will have to be strictly Uganda chose in 2016 as the least cost and
complied with. most robust route, as one of the “world
“Every service provider including sup- class” projects his firm has recently worked
pliers and contractors will be bound by all on.
these regulatory requirements (safety, con- “You have an opportunity here and our
struction, operation and IFC regulations),” challenge is to inspire you and explain to
he said, “We don’t want to do it fast we you those opportunities so you take them
want to do it right so the project survives for up,” Evans said.“But the opportunities are
25 years.” In describing the work packages not going to happen overnight, they will
that may hold interest for Ugandan busi- take months or even years to develop.”
nesses, Lamb said the project has four tiers
of contracts. Elly Karuhanga Ali Ssekatawa

Feb 02 - 08, 2018 15


NEWS ANALYSIS

Experts say Uganda needs to invest in storage facilities to cut down on losses for farmers.  INDEPENDENT /IAN KATUSIIME

Uganda’s faltering
fight against poverty
By Dicta Asiimwe
Days after it emerged that the number of Ugandans living below the poverty line has increased to levels last seen
twenty years ago, debate amongst experts is raging.
But while the figures have raised eyebrows, experts say they are not overly surprised given the failure to
industrialise, a high population growth rate and a limping agricultural sector that has over the years received
minimal and ill-advised investment. The new poverty figures are contained in the latest Uganda National
Household Survey (UNHS). The number of people living below the poverty line, the survey shows, increased
from 6.6 million four years ago to the current 10.1 million.

T
his 53 per cent increase means to 80 per cent of the population live, been growing and spurring economic
Uganda is back to where it was are doing very little. growth leading to little reduction in
in 1997, when there were 9.8 Joseph Muvawala the Executive poverty, even if agriculture which
million people living below the Director of the National Planning employs majority of the population
poverty line. Authority says Uganda has only was under performing.   
Several factors including low experienced economic growth because To return to the path of reducing
productivity have contributed to the country liberalised the economy, poverty, economists say, Uganda
this situation, experts say. A recent controlled inflation and ensured a would have to maintain economic
study by the University of Denver stable shilling. But, he adds, such growth at above 7 per cent. This has
on behalf of USAID shows that most interventions are no longer enough.  not happened since 2010. Matters
of Uganda’s productivity is in urban Due to these interventions, the are not helped by the fact that
areas, while rural districts where close service and construction sectors have agriculture productivity, an important

16 Feb 02 - 08, 2018


NEWS ANALYSIS

in agriculture now would pay


off much better than the current
investment in infrastructure expected
UNHS shows to start paying off ten or so years
that the from now.  In the 1960s, Vietnam was
producing 1 million bags of coffee,
average which was lower than Uganda’s 3
million bags.
monthly Vietnam’s tea production has
expenditure since increased to 32 million bags,
which earns the country $3 billion.
for a Ugandan In comparison, Uganda last year
exported 4 million bags of coffee
household is making $490 million according to data
just Ush351, from Bank of Uganda.
Were Uganda’s coffee production
600 ($96.3) to expand to the levels of Vietnam,
Dr Munyambonera says the country
would not only benefit from the
increased income for farmers but
there would also be more jobs from
the processing factories. With about
400 coffee processing factories instead
usage stands at 5 kilograms of the 35 licensed processors that
per hectare compared to the currently exist, some Ugandans now
recommended 60 kilograms. stuck on the land, contributing very
There is also little investment in little to productivity, would get jobs. 
storage facilities, which leads to “The Asian Tigers first looked at
losses for farmers. President Yoweri their domestic economy by starting
Museveni has said that Uganda with medium agro processing,” says
currently has a maize glut of 4 million Dr Munyambonera.
tonnes. An increase in jobs would increase
He says that Ugandans harvested money available for Ugandans to
contributing factor, has been largely 5 million tonnes of maize but the spend, leading to more local investors,
underperforming.  country’s prisons, armed forces, while at the same time making the
Information from the World Bank’s schools and the occasional household market attractive for international
2017 economic update shows that that consumes maize meal could only investors. Currently the UNHS shows
over the last seven years, agriculture absorb 1 million tonnes, leaving the that the average monthly expenditure
has consistently grown at a rate lower rest for mainly export. for a Ugandan household is just
than the country’s over 3 per cent Yet to effectively export surplus Ush351, 600 ($96.3).
population growth rate. crops, Dr Munyambonera says, proper This amount is too little to attract
This makes the 69 per cent of the storage facilities and a regulated foreign investors, experts say. Yet
Ugandan households that survive on marketing system are necessary so according to Kasingye Kyamugambi
subsistence agriculture vulnerable that farmers can wait out the glut. the Coordinator of the Standard
to sinking further into poverty and But instead of these investments, Gauge Railway (SGR) project, Uganda
explains the decline. Uganda has provided seeds in an is investing heavily in the road,
To have a meaningful reduction in environment that is delivering very railway and electricity infrastructure
the number of people living below little returns. So far the ministry of to attract investors. The same view
the poverty line, Ezra Munyambonera agriculture has distributed 400 million is held by officials at the Electricity
the Head of the Macroeconomics tea seedlings which should now Regulatory Authority who have
department at the Economic Policy cover 62,000 hectares of land. Instead argued that it is okay for Ugandans to
Research Centre (EPRC) says that Uganda only has 16,000 hectares buy electricity expensively. According
Uganda and African countries under tea production.  to these officials this is necessary for
will have to invest in increasing Without the appropriate Uganda to invest in electricity which
agriculture productivity through investments, agriculture productivity will attract investors.
the use of fertilisers, investment in has been poor making it impossible But Dr Munyambonera says
extension services, irrigation and for Uganda to benefit from $40 billion this policy is ill advised as foreign
storage facilities for when there is over in foreign exchange that Africa sends investors are attracted by several
production. Market systems have to abroad to import food.  other things other than availability of
also be structured to work for farmers.  With investment in improving infrastructure. He highlights skilled
 “Poverty in Uganda can only be agriculture productivity, experts say, labour and market availability which
fought by increasing crop and animal Uganda would benefit from increased Uganda doesn’t have at the moment.
productivity,” Munyambonera says, income at the farm and limited
“Agriculture productivity is at 20 per industrialisation processes would start
cent of its potential. It is too low to to take off.
eliminate poverty.” Vietnam, one of the Asian tigers is
According to EPRC data, fertiliser highlighted to show how investment

Feb 02 - 08, 2018 17


NRM 32nd Anniversary

President Museveni during the NRM celebrations in Arua on Jan 26.

NRM’s 32 years
President Museveni promises to fight and defeat corruption
like he routed out indiscipline from the army

O
n Jan. 26, Uganda’s ruling party, because one cause of parochialism and sec- going to be used to transform the society
the National Resistance Move- tarianism of ideology is a stunted society in further. For this to happen there is need for
ment, celebrated its 32nd an- terms of socio-economic transformation. correct policy stimuli to do so. Its effective
niversary in the northwestern President Museveni has always insisted implementation by government and other
town of Arua with focus on the economy, that the middle class in the country should stakeholders would serve a good purpose.
have a high proportion of the national bour- Meanwhile, the other policy undertak-
governance, the peace dividend and national
geoisie and not just traders especially not ing, liberalization since the early 1990s has
unity.
importers of goods and services that can, helped in the creation of the middle-class by
What was unmistakable from the celebra-
more economically, be made in Uganda. removing the state (government) from doing
tion is the fact that although significant
business. The State used to monopolise the
achievements have been garnered over the
last three decades some challenges remain
Other key sector interventions business of hotels, transport, imports and
For the country to overcome challenges, others.
for the NRM leadership to tackle.
the NRM maintains that there is need The state transferred these sectors to the
President Yoweri Museveni noted in his
to understand the proportions of social- hands of the private sector with a view that
speech that the years of neglect, apathy, mis-
economic transformation which is very this would create efficiency and spread
management and institutional inefficiency
crucial and unique. Some questions have wealth amongst the people. To a larger
that had eroded the country’s image no
been raised in this regard. What stimuli, for extent this policy shift has yielded positive
longer exist.
instance, did the NRM use to encourage results.
For many years, the NRM evolved using
this process? The President has been clear in On democracy, NRM leadership believes
two principles – patriotism and pan-African-
answering this question. strongly that much has been achieved. The
ism. Patriotism meant unity within Uganda
Apart from peace, he has said before that democracy pushed by the NRM, is much
to ensure prosperity and security while Pan-
the NRM used four other stimuli – education richer than anything, anybody, has attempt-
Africanism was adopted to promote unity in
for all (Universal Primary Education, Uni- ed to do in the world, other than the ancient
East Africa and Africa in order to guarantee
versal Secondary Education); liberalization Greeks who produced direct democracy, in
the same prosperity and security.
of the economy; improved health (especially the city states. In the process, women have
The President has on many occasions said
immunization) and improved infrastructure been empowered, the youth, the workers,
that the unity of Uganda and its market is
(roads, electricity, telephone, the ICT back- the disabled; the soldiers have all been well
not enough to guarantee prosperity and stra-
bone, piped water and safe water in the vil- sucked in the country’s democratic pro-
tegic security. The unity of East Africa, the
lages among others). cesses.
unity of Africa can do these two better than
Regardless of the challenges faced, as a
the mere unity of Uganda.
In order for the people to benefit from
consequence of these deliberate steps, the lit- Dealing with 10 strategic bottlenecks
eracy rate is now 75%, up from 43% in 1986. Over the last 50 years, the NRM has iden-
Pan-Africanism and from Uganda’s unity,
The social base for socio-economic transfor- tified 10 strategic bottlenecks which include;
the society had to undergo a metamorphosis
mation has, therefore, been laid. ideological disorientation, a weak state espe-
─ a socio-economic transformation. This is
Going forward, this transformation is cially the army that needed restructuring;

18 Feb 02 - 08, 2018


Advertorial
the suppression of the private sector and the others. These activities have potential to get these funds aim at eliminating the 68% of the
underdevelopment of the human resource 68% of the households out of poverty. homesteads that were identified by the 2002
(lack of education and poor health). The bigger picture is; agriculture con- census as being outside the money economy.
The others are; the underdevelopment of tinues to provide raw-materials for a wide The other key area of interest that the
the infrastructure (the railways, the roads, spectrum of industries – dairy, beef, textiles, NRM is looking at is attracting more Foreign
the electricity, the telephones, piped water fruits, grain milling, coffee, tea, cocoa, sugar, Direct Investment (FDI) and the activities of
and other facilities); a small internal market; wood products, tobacco, and medicinal the bigger investors. This has already been
the lack of industrialization; the underde- herbs. This is critical because many people happening. The country hopes to see more
velopment of the services sector (hotels, are getting jobs in these industries. of this happening. There is hope that this
banking, transport, insurance); the underde- In addition, the other industries will be will create bigger units ─ factories for sugar,
velopment of agriculture and the attack on based on minerals. There are also those steel, fertilizers and others.
democracy. based on human skills such as the Kiira elec- Going forward, the government will con-
Over the years, the NRM has aggressively tric car, the Kayoola electric bus, the multiple tinue to ensure there is peace and security,
been handling many of the strategic bottle- computer applications developed by com- a stable and growing economy, democracy
necks. This stance means that the country is puter scientists and others. and rule of law and above all, civil servants
better placed to convert Uganda into a mid- Fortunately, the services sector is already serve the interests of the common man.
dle-income country by 2020 and an upper providing important stimuli for moderniza- For all these to yield tangible results,
middle-income country by 2040. tion – tourism, transport, banking, and trad- however, everyone has a role to play. The
Whereas recent numbers have seen a ing, insurance and professional services. President has however identified one big
slight rise in poverty amongst Ugandans problem that must be dealt with. This is
largely because of bad weather affecting the Capital mobilization corruption among public servants ─ judicial
agriculture sector and a few other causes, There are five wealth and job creation staff, medical personnel, staff dealing with
President Museveni, being a veteran of fight- funds which the NRM has been pushing for licensing projects as well as some elements of
ing poverty and working for socio-economic to support groups get capital and go about the political class.
transformation in Uganda, there is hope that businesses that would transform their lives. In his detailed speech in Arua, President
this trend will be reversed. These funds are: the NAADS Fund, the Museveni assured the public that corruption
Agriculture remains the country’s big sec- Youth Livelihood Fund, the Women Fund, will be eliminated.
tor in terms of providing income to over 70% the Micro-Finance Fund and the Innovation “There will be no equivocation on this
of the population. The population is encour- Fund. These are expected to boost income issue. “Enjokyi, ihakuurwa omuriro” (you
aged to continue engaging in the growing for the people involved and have multiplier use fire to tame aggressive bees). The way
of crops such as coffee, food crops (bananas, benefits for the economy. we defeated the indiscipline of the army, is
cassava or Irish potatoes, vegetables, toma- They are meant to be interest free or low- the way we are going to defeat corruption,”
toes). There are also opportunities in animal interest loans to those who cannot borrow Museveni said.
rearing, poultry, piggery, fish farming and from commercial banks. In general terms,

SBI INTERNATIONAL HOLDINGS AG (UGANDA)

The Management & Staff of SBI International Holdings AG (Uganda) congratulates


H.E. The President of the Republic of Uganda, Cabinet Ministers, Members of Parliament
and all the people of Uganda on the occasion of the 32nd NRM Liberation Day

ONGOING PROJECTS

Kabaale International Airport


Kikagati Hydro Power Project
Mukono-Katosi-Nyenga road
Lubowa Housing Project

FIL Courts, Plot 88, Luthuli Avenue Bugolobi, P.O. Box 11713 Kampala-Uganda,
Tel: +256-31-2500500 | Email: sbi@sbi.co.ug | Web: www.sbi.co.ug

Feb 02 - 08, 2018 19


Congratulations
Advertorial

The Board, Management and Staff of


Uganda Road Fund Congratulate
the President of the Republic of Uganda,
H.E General Yoweri .K. Museveni
and all the People of Uganda upon the
celebration of the
32nd NRM anniversary.
Happy
32 Years
of
NRM

Financing Road Maintainance

The Uganda Road Fund (URF) 5th Floor, Twed Towers,Plot 10,
Kafu Road Nakasero, P.O Box 7501, Kampala
Tel + 256 (0) 414 257 072 + 256 (0) 312 178 250 e-mail address info@roadfund.ug
20 Feb 02 - 08, 2018
Uganda Road Fund @UgandaRoadFund www.roadfund.ug
kenya

Odinga swears in as Odinga’s oath is also happening at the


time Kenyatta’s new cabinet has faced
criticism over inclusiveness. The president

‘People’s President’
has also been criticized over a new position
he has added to his cabinet set up- Chief
Administrative Secretary, which many
analysts say will likely duplicate the role of
Principal Secretary.
NASA’s Musyoka, Mudavadi skip event Kenyan activists and journalists
criticized the shutting down of the
television stations. Boniface Mwangi,
By Ian Katusiime realization, of the high calling, assume photographer turned activist posted on

H
the office of the People’s president of the Facebook: “President Uhuru Kenyatta
uge crowds gathered at Uhuru Republic of Kenya, do swear that I will behaving more and more like his political
Park in Nairobi to witness the be faithful and bear true allegiance to the father, Moi. Threatening and shutting
swearing in of Kenya’s Leader people and the Republic of Kenya,” said down media houses is DICTATORSHIP!
of Opposition, Raila Odinga as Odinga. He also swore to preserve, protect President Uhuru, your attempt to follow
the ‘People’s President’ on Jan. 30. Earlier and defend the constitution of Kenya. in the footsteps of dictator Moi, will totally
in the day, the government shut down The swearing in of Odinga had been fail. The year is 2018 and we shall not allow
three television stations; Citizen TV, KTN initially scheduled for December 2017, Kenya to slide back to dictatorship and
and NTV and had also warned media months after his rival, Uhuru Kenyatta, censorship. Leave the media alone!”
houses against broadcasting the event of took his oath as President of Kenya. For The Kenya Editors Guild also put out a
the leader of the National Super Alliance six months, Kenya has been embroiled in a statement expressing concern on the trend
(NASA) swearing in. political crisis that has bitterly divided the of media intimidation taking toot in the
Deputy President William Ruto had nation and derailed East Africa’s largest country. “We would like to state it with
told a church congregation a few days economy. all the clarity we can that the media is not
before NASA’s planed activity that the Odinga petitioned Kenya’s Supreme an actor in the ongoing contest between
government does not recognize the Court after he deemed the re-election of Jubilee and NASA over the outcome of the
swearing in of Odinga. He added that the Uhuru Kenyatta on Aug.8, 2017 a sham. last General Election. The Media remains
Kenyan people had elected their leaders On Sept. 1, the Kenyan Supreme Court a mere messenger and a chronicler of any
in 2017 and the government was now annulled the election citing massive events happening in our country,” the
focusing on development. irregularities by the country’s election statement read in part, signed by Linus
Odinga took the oath, administered body, the Independent and Electoral Kaikai, Chairman of Kenya Editor’s Guild.
by Ruaraka MP TJ Kajwang, in an act Boundaries Commission (IEBC). As the The swearing in of Raila Odinga is likely
not lasting more than ten minutes. He country prepared for a fresh election, to increase political tension in a country
was surrounded by close allies Miguna Odinga withdrew from the poll and asked still recovering from a deeply divisive
Miguna, Siaya Senator James Orengo, his supporters to shun voting. The 2017 election. As soon as the election ended,
and Mombasa Governor William Joho as presidential election was Odinga’s fourth debates and maneuvers on Kenyatta’s
thousands of supporters cheered him. and the second where he was facing off succession had already set forth.
Odinga’s co-principals in NASA like with Kenyatta. Constitution of the current cabinet has
Kalonzo Musyoka, Musalia Mudavadi and The repeat presidential election reportedly caused a rift between Kenyatta
Moses Wetangula (NASA) were absent but happened on Oct. 26 but with only and his deputy and recently, Odinga told
Odinga said Musyoka would be sworn supporters of Kenyatta taking part. Ruto that the deputy needed him as the
in another day as the deputy people’s Since then, it has been protests and two strategize for the 2022 election.
president. demonstrations as supporters of Odinga
“I Raila Amollo Odinga, in full clashed regularly with the police.

Feb 02 - 08, 2018 21


rwanda

Kigali City

Rwanda records US$1.67bn


in investments in 2017
Over 38,261 jobs to be created in eight sectors

By Isaac Khisa This was followed by local investments 2016 where 13,477 jobs to be created were

R
that stood at US$ 470.98 million, down from registered in the eight sectors.
wanda recorded a 30.7% growth in US$479.5million in the previous year while This comes at the time Rwanda has con-
investment to US$1.675bn last year joint ventures – local and foreign investors – sistently recorded improvements in the ease
compared with the previous year, registered investments worth USD$ 160.47 of doing business, with the latest World
data from the country’s promotion million. Bank report on the Ease of Doing Business
agency, Rwanda Development Board (RDB) Commenting on the performance, RDB Index, indicating that Kigali had the biggest
shows. Chief Executive Officer, Clare Akamanzi, jump, improving 15 places from last year’s
According to the data, three sectors – said the country’s investment has increased rank of 56 to 41.
construction and real estate, mining and from US$800million in 2007 to US$ 1.675bn This is attributed to RDB’s  introduction
infrastructure – attracted more invest- in 2017, signalling the country’s ability to of  a One Stop Centre for investors, which
ments, contributing US$637.66million, attract and retain investments. provides information and services to guide
US$267.34million and US$202.66 million or “This is evidence that Rwanda is being investors through the key steps of starting
38%, 16% and 12% of the total investments, seen more and more as a great place to do a business such as registration, licenses,
respectively. business,” she said adding that RDB’s ambi- immigration, land, utilities, environmental
Bugesera Airport Company Ltd  regis- tion is to create 150,000 off-farm jobs per clearances and tax and mortgage registration
tered the largest individual investments annum. services. 
worth US$ 398.68 million followed up close- She expressed confidence that the newly RDB helps investors to sort out sim-
ly by Ignite Power Rwanda Ltd worth US$ recorded investments in the East African ple and complex challenges they encounter
113.84 million, Gasabo Investment Company nation would have an immediate impact along the way and provides any guidance
(US$ 89.02 million and African Panther on the employment prospects of the young required.
Resources Ltd ($USD 54.02 million).  population. Also, RDB has introduced investor
Kigali View Hotel and Apartment Ltd reg- RDB hopes that 38,261 jobs are to be cre- engagement platforms such as the’ Investor
istered US$53.2 million worth of investment. ated in the last year’s investments in infra- Open Day’ every Friday as well as ‘CEO
Of these, Foreign Direct Investment domi- structure, services, manufacturing, tourism, Forum’ four times a year where RDB senior
nated the level of investment, contributing construction and real estate, agriculture, management meets and engages with busi-
US$1.041billion or 62.26% of all investments. Information, Communication and Technol- ness leaders.
In 2016, FDIs contributed investments worth ogy, and mining sectors.
US$ 650.4 million. This represents an increase of 184% from

22 Feb 02 - 08, 2018


rwanda

Airtel’s Tigo Rwanda take-over


The merger will boost the telecom’s customer base to 5.9 million
By Agencies
India’s telecom firm, Bharti Airtel, has received regulatory approval to acquire Millicom
International Cellular’s Rwanda unit, Tigo Rwanda

T
he Sunil Mittal-led mobile carrier Meaning, all 14 Airtel units in Africa will million in the December quarter compared
said on Jan 23 that it had received become Ebitda positive, going forward. with a loss of US$93 million a year earlier,
approval from the Rwanda Utilities The Airtel-Tigo merged entity will have helped by a surge in data traffic and Airtel
Regulatory Authority (RURA) to the largest customer base in Rwanda with Money transactions. Airtel’s Africa revenues
acquire Millicom’s Rwanda subsidiary. 5.9 million subscribers. It will also have the too have grown 5.3% on-year to US$783
Last December, Bharti Airtel had inked a largest sales and distribution network in million in three months ended December.
definitive pact with Millicom International Rwanda. Over the years, Bharti Airtel has been
under which Airtel Rwanda would buy The combined networks of the two compa- bolstering its market position to become a
100% equity interest in Tigo Rwanda, and in nies will serve customers with voice/data key player in the continent with in-country
turn, consolidate the Rwandan mobile mar- services, global roaming and mobile bank- acquisitions.
ket by putting Airtel as a strong No 2 carrier ing services, Bharti Airtel said, adding that In the past, it has acquired assets in Ugan-
by revenue in the African country. subscribers will not be required to change da (Warid Telecom) and Congo B (Warid),
Millicom’s move to sale Rwanda’s opera- their existing Tigo telephone numbers Kenya (yu Mobile) and consolidated opera-
tions was in line with its strategy to focus on and existing Tigo cash services will not be tions in Ghana (Millicom).
providing advanced fixed and mobile data affected.
services in Latin America, which contribute Statistics released by RURA in Oct 2017 In a recent interview to Economic Times,
86 % of its revenue, according to Millicom’s shows that Tigo had 40% market share of Bharti Enterprises Chairman Sunil Mittal
website. Rwanda’s total 8,675,826 active subscribers, said that the company would look at con-
“The merger will result in the only nega- compared to MTN’s 41 % while Airtel had solidation in countries like Kenya, Rwanda
tive Ebitda operating company joining 13 19 %. and Tanzania through mergers, acquisitions
positive Ebitda operating companies in Bharti Airtel has been performing well or both, even as the overall Africa business
Africa,” Bharti Airtel said in a statement. in Africa, having reported a profit of US$76 was turning a corner.

Feb 02 - 08, 2018 23


Pioneer buses at the Mandela National Stadium parking yard.  INDEPENDENT/JIMMY SIYA

Rough terrain for


O
By Isaac Khisa

n the road leading to


the Western gate of

Pioneer Easy Bus


the Mandela National
Stadium, located about
8 kilometres away from
Kampala City Center
on the Kampala-Jinja highway, one
would easily observe that something
wrong.
Creditor plan to auction buses
Nearly three dozens of Pioneer
Easy Buses with no wheels are parked
to recover Shs151m debt
at the Stadium’s parking area, as a
section of mechanics clad in over-
sized green and blue aprons are
carrying out inspection and repairs company is increasingly facing and auctioned.
to the buses. Some of the buses, stiff competition from the 14-seater He said the move follows the
however, appear to be degenerating commuter taxis that have since company’s inability to defend itself
towards the irreversible status. reduced their fares to match Pioneer’s in court after securing a temporary
A section of the company’s staff fares. injunction last year for the then
told The Independent that lack of spare And to make the situation even worse, planned auction.
parts on the local market is one of the there is a looming auction of at least 26 However, Esther Kemigisha
reasons behind the grounding of the buses to recover Shs141million owed Tayebwa, a senior partner KNT
orange-coloured buses. to a business man, Charles Mushabe. Advocates and the PEB legal advisor
“The problem with these buses Bonnie Rwamukaaga, a bailiff said she was yet to receive an update
is that there are no spare parts sold at Libra Auctioneers, told The about the company’s pending court
locally,” sources told The Independent. Independent in an interview that case.
“Management has to import all spare Mushabe and his lawyers, Lex Uganda The company’s woes stem from a
parts from China – where these buses Advocates and Solicitors, are working 2014 judgment delivered by Nakawa
were purchased.” on the paperwork required by court Court ordering it to pay businessman
The sources added that the bus to have the company’s buses attached Charles Mushabe Shs141 million for

24 Feb 02 - 08, 2018


business

the supply of spare parts. would generate about Shs 360,000 per Timelines of Pioneer
James Kasiita, the company’s
information systems analyst, who
day, translating into Shs 9.36 million
per month and Shs112.3million per Easy Bus troubles
also doubles as the public relations year excluding taxes and operating
officer, told The Independent that the expenses.  12 Mar 2012: PEB starts
2-year closure of the PEB at the onset This implies that if all the 100 buses operating in the Kampala
of its operations and the subsequent are in operation, PEB would be making City
requirements to remit taxes and at least Shs11.2billion in revenue per  13 Mar 2012: Lord Mayor
dues to Uganda Revenue Authority annum. Erias Lukwago calls PEB’s
and Kampala Capital City Authority Efforts to get a comment from KCCA operations illegal
affected its cash flow. Publicist Peter Kauju or his assistant  10 Oct 2012: Pioneer bus
“Regular payments of taxes to URA Robert Kalumba on the issue of special workers strike over lack of
and KCCA affected our cash flow to lanes allocated to PEB were futile as pay; then later called off
maintain buses,” he said. “We also they could not pick our repeated calls. strike
have to pay our staff totalling 150.” Previously, KCCA officials  20 Oct 2012: Pioneer bus
URA impounded 100 buses have said the process to give PEB attempts a move to partner
belonging to PEB in 2013 – just after exclusive routes would be executed with UTODA to remain in
spending a year in business – for in collaboration with the Ministry of business
failure to clear outstanding tax debts Works and Transport as one avenue of  19 Nov 2012: PEB threatens
amounting to Shs 8 billion. ensuring order in public transport in to end operations in press
Though the company was allowed the city prevail. release after a standoff with
to operate 10 months later, after Towards the end of 2013, there were city and government author-
negotiation and an agreement to reports that President Yoweri Museveni ities over contract issues
pay between Shs270million and had been approached by a section of  30 Dec 2012: Parliament
Shs300million monthly within 24 people with interest in PEB business wants Pioneer Easy bus deal
months, plans to resume operations for executive advice on this matter. reviewed
early 2014 were put on hold, pending He was quoted as saying that  6 Feb 2013: Parliament
a review of a contract signed with he would support the proposal by orders KCCA to sign new
Kampala Capital City Authority. KCCA to give exclusive routes to the agreement with PEB,
This was intended to accommodate company. It is not clear up to now Wakiso and Mukono urban
the interests of authorities in Mukono why this move has not seen light of authorities
and Wakiso Districts as the Pioneer day. Is this a potential cause for PEB’s  14 Feb 2013: URA executes
buses were to ferry passengers to and troubles or the entire business strategy a warrant of distress against
from the two districts as well. was wrong? Pioneer Easy Bus by
And while a fresh contract was impounding all their buses
eventually drafted and agreed upon Brains behind PEB due to failure to pay tax
by all the four parties, it could not Launched in 2012, the Pioneer buses arrears amounting to Shs
be signed until the government had were welcomed by city residents as 8bn. They threatened to auc-
revised its Road and Public Safety they were seen as a long awaited tion the buses
Act to regulate the activities of city solution to reducing public transport  16 Feb 2013: Wakiso
commuter buses. costs and eliminating disorder created and Mukono authorities
Currently, PEB ply around a few by the 14-seaters. demands the Central Gov-
parts of Kampala City. These are Prior to its financial troubles, PEB ernment to pay over Sh940m
Kampala-Kireka-Banda-Kyambogo- had purchased 100 buses and planned lost during the period PEB
Nakawa-Bweyogerere route; Kampala- to import more units progressively, had operated in their areas
Luzira-Kitintale-Bugoloobi route; until it met the 522 units that it agreed  18 Feb 2013: PEB executives
Kampala-Kajansi and Kampala- upon with the KCCA. claim the company has
Namugongo routes. First incorporated in 2005, the lost Shs13.2 billion because
It charges range between Shs 500- company lists former Privatization KCCA has not fulfilled its
Shs 1, 000 depending on the distance Minister and National Resistance contractual obligations.
covered by the passenger. Movement (NRM) historical cadre,  21 Dec 2013: URA allows
“We operate three trips a day on Matthew Rukikaire and businessman PEB to resume operations
each route yet we would be making Fred Senoga as chairman and secretary for the first time in 10
five if we had a special lane for our respectively, according to the registrar months after reaching an
buses as agreed in the contract with of companies. agreement over tax arrears.
KCCA,” Kasiita said, adding that Rukikaire owns 45.04 % shares in  2 May 2015: PEB resume
full implementation of the contract the company. The other shareholders, operations
would have enabled the bus company according to available records, are former  18 May 2017 – to-date:
generate more revenue. Premier Kintu Musoke, Former Deputy Kampala High Court’s
Though the executives were cagey Premier Eric Adriko, Faizal Kasujja, a Execution Division orders
to disclose the company’s revenue banker, Muhammed Kasajja, a real estate attachment of 26 buses to
performance, The Independent developer and Ida Wandendeya. recover Shs151 million owed
analysis shows that each bus carrying to business man, Charles
61 passengers at full capacity per trip Mushabe.

Feb 02 - 08, 2018 25


business

Museveni addressing participants at the Forum on Jan.23 at Sheraton Hotel.  Independent/J.Businge

Uganda could hire


expatriates for oil jobs
Kigumba Petroleum Institute has trained just 133
locals with certificates and diplomas in oil and gas
By Julius Businge ited training centres and a mismatch of the ately (to do the jobs), we can go ahead and

U
domestic curriculum to the international bring the ones near us…” he said.
ganda will start investing in the oil industry demands. Museveni said the other options are;
and gas infrastructure ahead of the Oil and gas activities are expected to cre- the government would do a cost-benefit
planned production in 2020 but ate at least 167,000 jobs at their peak during analysis on allowing oil companies establish
there are indications that majority field development as well as pipeline and training institutions and thereafter get back
of the work will be undertaken by expatri- refinery construction, according to Muloni. their returns [investment] by deducting on
ates. Of those, 14,000 will be direct jobs, 42,700 revenues to be paid to government.
This is based on the fact that the Uganda indirect and 105,000 induced jobs. In terms The other option is to have as many
Petroleum Institute, one of the institutions of competences, 15% [of the 167,000] are private sector players starting institutions
mandated to impart skills to the local popu- estimated to be professionals (engineers and to train oil and gas skills to Ugandans who
lation interested in working in the sector, managers), 60% technicians and craftsmen would either pay for themselves or govern-
has so far trained and graduated just 133 and 25% unskilled laborers. ment would foot the bill, he said, without
Ugandans with diplomas and certificates. giving the timelines for possible implemen-
Makerere University, which introduced Way forward tation.
undergraduate courses in oil and gas in An official from the petroleum institute Elly Karuhanga, the chairman of UCMP
2009, seems to have done little to address said they plan to introduce six more courses said the government needs to wake-up, use
the human resource gap. related to oil and gas this year so as to the legal and policy frameworks in place to
Speaking during a forum dubbed ‘skill- attract more students. urgently equip Ugandans with skills so as
ing and local content forum’ organized by Muloni said the government would con- not to allow oil companies import labour.
Uganda Chamber of Mines and Petroleum tinue to push for skills development pro-
(UCMP) in collaboration with the Ministry grams to close the identified gap together Quick facts
of Education and Sports on Jan 23, President with development partners.  Uganda has confirmed 6.5 billion bar-
Yoweri Museveni, said the number is ‘too’ “It is important that we prepare the coun- rels of oil in about 20% of the potential
small. He blamed the current situation on try’s population for these new opportunities area of which about 1.5 billion barrels is
the low level of student enrolment in sci- that are emerging in the sub-sector especial- recoverable
ence disciplines. ly at the next stage of Engineering Procure-  Uganda expects a total investment of
“Many Ugandans are trained in humani- ment and Construction (EPC) scheduled about US$15 -$20bn in the sub-sector in
ties but there is a sizeable group who do later this year,” she said. the next 3-5 years. These include about
science and technical courses,” he told the President Museveni, however, said the $8 billion in the upstream development,
audience. Energy Minister, Irene Muloni, activities in oil gas sector will go ahead as $4 bn in building the crude oil export
however attributed the limited number of planned with or without the local human pipeline, $3.5 bn in building a refinery
trained Ugandans in matters oil and gas to resource. and other investments in support infra-
the high costs involved in the international “If we don’t have our people immedi- structure like the airport, roads
certification, lack of internationally accred-

26 Feb 02 - 08, 2018


Executive Style

Uganda Clays pegs growth on innovation


How would you describe bring in more parts basing on
business at Uganda Clays as the available need.
George

T
we speak?
alking about 2017, Inholo is the What about the raw materials
the key thing to note especially clay?
is that we had a fair managing We don’t have an issue with
year. We grew but director of clay reserves. We are located
not to our expectations. We in Kajjansi because our raw
did better than the previous
clay products material that is underneath.
year – in terms of revenue maker, We have enough of it for
growth, cost reduction, gross Kajjansiand Kamonkoli. Every
margin and on the overall
Uganda Clays year we do projections. The
profitability of the business. Limited. He clay reserves that we have can
We would have grown better spoke to The last for over 20 years. Note
but the economy was not that we always buy more land
good in the first half and Independent’s to ensure that we have enough
our clients had to prioritize Julius clay for our business.
and or post-pone buying
decisions of our products. Businge What should the market
This year, we started about their expect from UCL in 2018 and
reasonably on a fair note. beyond?
We opened up an outlet in operations We want to grow our
Arua, Lira, Gulu and Kabale. and industry business by double digits
This year, however, we have so we give value to the
started the plan is to go into issues shareholder. We are going to
deep West and in the other do innovations – we want to
areas. We will also focus feature amongst the top 100 We can’t rely on organic go into other colored/glazed
our business in Kampala and best taxpayers and we have growth because it can only kind of tiles, clay paver. We
Wakiso which we believe have improved salaries for our staff deliver single digit. will embrace passion to excel
a high per capita income. and people feel positive change in everything that we will
in the company. What is the update on your choose to do. We will also do a
How has your business plans to have physical lot of marketing, geographical
strategy dealt with the How far has NSSF gone with presence in the regional expansions by opening up
growing industry competition converting the debt that you markets? outlets which will be stocked
since you took over as MD in owe them into equity? We already have people adequately at all times. We are
2014? That is work in progress. on ground that distribute our going to put in place a robust
There is no rocket science In principle, both the Board products in Rwanda. We are advertising program. We will
on this. The key thing is visible of NSSF and that of UCL also doing business in Kenya, also have a builder’s academy
leadership. We are selling agreed that equity swap will Tanzania and South Sudan. that will bring architects,
clay products. The biggest take place. The process is not Exports to these markets property developers, engineers
agenda for us as a business is as simple as you talk about it. account for about 3% of our and people in the real estate to
to increase our top line, drop The plan was to have it done sales per year. In the short term help sharpen their knowledge
costs, motivate staff and raise last year but we had many that is what we are doing there about the industry and our
the bar on control environment priorities…but I am very but in the long term we would products. We will also raise
and ensure the health and optimistic that this year, it will love to have presence there. our bar on the corporate side
safety of our staff, our be put to rest. when it comes to designing
customers and the community There has been talk strategies to serve them well.
where we do business. Yes, There is a general belief that about the ageing factory We maintain the proven slogan
we feel the competition; you our economy will get better facility at Kajjansi and the that when you build using
cannot run away from it. But in the short-to medium term– underutilization of the our products, you build for a
we shall uphold our quality how are your business plans Kamonkoli plant. What has life time unlike other roofing
agenda and ensure that our pegged on this optimism? changed of late? products. We are also going
products are available and While the forecasts are Last year we had steady to raise our bar on health and
distributed on time and rightly there, we don’t use them production because we safety; these are simple things
priced. We will continue to predominantly to peg our brought in the requisite spare but they mean a lot. We shall
have customer centric attitude operations and projections. parts, replacing the old ones. also do a lot of corporate social
in addition to dropping There is what we call organic We spent close to € 300,000 responsibility especially with
waste in the company. In growth; but there is also (Shs 1.35bn) on that. We ran coffee farmers because we
addition, we are the only growth that you can cause by the factories efficiently and this use coffee husks in our firing
company that is ISO certified doing certain things like road ensured that we did not run process.
in the clay business. We still shows to influence demand. out of stock. This year, we will

Feb 02 - 08, 2018 27


business
telecom csr

Airtel unveils 3G internet DStv Eutelsat Awards winner to view rocket launch
countrywide see a rocket launch into

A
space and the student who
irtel Uganda has started the New
Year with the launch of 3G internet designs the best poster
to all its sites across the country. will win a trip for two to
Speaking at a press conference South Africa and visit the
in Kampala on Jan.24, the company’s Man- South African National
aging Director V.G Somasekhar, said that Space Agency as well as
the upgrade in technology to 100% mobile exploration of several
broadband means that all their custom- heritage sites.
ers will have access to high speed internet Students can enter the
regardless of their geographical location. competition by writing
“Today is about internet for everyone; it is an essay or designing
about how we unlock, refine and make data a poster based on the
available for everyone,” Somasekhar said. sixtieth anniversary since
“Data is a new asset class, people who Previous winners of the awards the first satellite, Sputnik,
have it are going to be empowered, countries was launched into space.

T
that have it are going to be rich.”  The schools attended
The company invested US$50 million he 2017 DStv schools on the continent by the two winners
in FY2017/18 in its broadband services. Eutelsat where MultiChoice Africa will also receive a DStv
Currently 154 sites are being rolled out Star Awards maintains operations. installation, including
and an additional 165 sites are under competition is In the awards seventh a dish, TV, decoder and
implementation. It has 10 million back. The awards are edition, the winner of free access to the DStv
subscribers, out of that 30% are actively open to all learners from the essay competition Education Package.
using its internet, according to Somasekhar.  secondary or combined will travel to France and

Hospitality trade
Latitude Hotels to open new property in Kampala
UNBS to spend Shs 22bn

H
otel chain, ties in Malawi and Zambia operation in September.
Latitude Hotels in 2012 and 2014, respec- Reports also indicate on food lab

T
Group, plans to tively. that the hotel group plan
open up a new While no official open- to set up similar facilities in he Uganda
hotel facility in Kampala as ing is yet to be confirmed, other African cities includ- National
it seeks presence in the East reports indicate that the ing Addis Ababa, Nai- Bureau of
African region. This follows hotel to be called ‘Latitude 0‘ robi, Kigali, Dar es Salaam, Standards
the opening of similar facili- with 52 rooms, will start Maputo and Harare. (UNBS) plans to
build a Shs 22bn
modern food
industrialisation testing laboratory in
in Bweyogerere, a
Kenya bets on biotech cotton to create 50,000 jobs Kampala suburb, to
check distribution
The plan, which includes policy and sale of harmful
review and crafting of new incentive foodstuffs in Ben Manyindo
schemes, is also expected to generate the country as
10,000 jobs in the apparel sector, well standardise
according to Business Daily, a local Ugandan food He said the
newspaper. exports. construction of
The Treasury Secretary, Henry Rotich, “We expect to the lab is part of
says in the draft Budgetary Policy start construction UNBS master plan
Statement that the plan will start with soon after signing of having modern
the training of 50,000 youth and women the contract with infrastructure to
to engage in biotechnology (BT) cotton the contractor enable it carry out
production. because we are its mandatory tasks.

T
By the end of 2018, the State expects done with the This comes at the
he Kenyan government is to have expanded acreage under cotton procurement time the country
betting on mass production of to 200,000 hectares, up from 29,000 process,” UNBS is awash with
genetically modified cotton to currently. This development comes at Executive Director, reports of butcher
create 50,000 jobs and generate the Uganda is still dilly-tallying with Ben Manyindo said. operators using
Sh20 billion in apparel export earnings the enactment of the biotech law that “We hope that in formalin and other
this year as part of President Uhuru will facilitate the safe of the technology the period of 18 deadly chemicals to
Kenyatta’s final term economic revival in a number of crops including cotton, months the facility preserve meat and
plan. bananas, potatoes and cassava. will be in place.” keep away flies.

28 Feb 02 - 08, 2018


business

BATU’s tax reprieve in Uganda


BY Isaac Khisa goods originating from any of

P
the EAC Partner States.
roducts of cigarette But in 2017, the said Act
maker, British Ameri- was amended to creat a dis-
can Tobacco (BATU) tinction between locally man-
manufactured at its ufactured goods and imported
Kenyan subsidiary in the East goods.
African Community will now Consequently, URA
be exempted from Uganda’s imposed a higher excise duty
excise duties. on goods imported into Ugan-
This follows a ruling in the da from Kenya and imposed
East African Court of Justice a lower duty on goods manu-
(EACJ) on Jan 25, barring the factured in Uganda, the com-
Uganda revenue Authority pany claims.
(L-R) Express Shipping and Logistics (ESL) Merreck Getugi, country manager, from imposing the tax on the The EACJ also took the
Silvester M. Kututa, Managing Director/ CEO and Martin K. Ikiara, group CFO company’s products from view that, the justice of
briefing the press on Jan. 25 during their office opening ceremony in Ntinda the neighbouring state due to the matter dictates that the
to expand their services to Uganda and the region.   INDEPENDENT/JIMMY SIYA discriminatory rates, pending respondent would suffer less
the case hearing and determi- injury from being temporarily
nation. prevented from exercising its
The ruling was delivered by right to collect the extra excise
Principal Judge, Lady Justice duty billed to the applicant if
Monica Mugenyi. the interim orders sought in
BATU filed the case at EACJ the present application were
in last August, claiming that granted, than the injury the
the new excise duties imposed applicant stands to suffer as
on cigarettes imported from the consequence of paying the
Kenya into Uganda were additional duty.
discriminatory and in contra- BATU recorded a profit of
vention of regional customs Shs7.8 billion in 2016, down
regulations. from Shs20.2 billion at the
BATU claims Uganda enact- end of 2015 citing increased
ed the Excise Duty Act No. 11 taxation, discontinuation
of 2014, which made provision of the tobacco leaf export
for an excise duty on cigarettes businesses and a tough
uniformly applied to all such economic environment.
Civil Society organization members, Baliraine Hakim, (R) director Eastern and
Southern Africa small scale Farmers Forum, Bridget Mugambe, (M) of Alliance
for Food Sovereignty in Africa and Agness Kiraba of Food Rights Alliance (FRA)
briefing the press on their joint statement against genetically modified organisms
(GMOs). They said that labeling of GMOs sh’d be inclusive with clarity on how it
sh’d be done to cater for all consumers.   INDEPENDENT/JIMMY SIYA Weekly share price movement (Jan. 24)
Security Jan 24 Jan 17 Movement
BATU 30000 30000 00
BOBU 115 112 2.6
CENT 1,631 1,579 3.3
DFCU 680 681 0.1
EABL 8,758 8,401 4.2
EBL 1,524 1,491 2.2
JHL 17,730 17,650 0.5
KA 592 582 1.7
KCB 1,577 1,579 0.1
NIC 12 12 00
NMG 3,758 4,024 6.6
NVL 515 515 00
SBU 29 29 00
UCHM 134 141 4.9
Uganda Breweries Managing Director Mark Ocitti, (L) hands over a 15 years’ UCL 29 29 00
service award to Moses Mukama at the brewery on Jan. 22, during a
UMEME 400 400 00
ceremony to recognize and award the brewery’s longest serving employees,
some of whom have been there for over 30 years.   INDEPENDENT/JIMMY SIYA ALSI -- -- --

Feb 02 - 08, 2018 29


COMMENT
By Simon P. Kasyate
UEGCL’s strategic plan
Launched in December 2017, the 5-year plan
is to ensure reliable, affordable electricity

T
he renowned English For the period 2015-2017, there the leading power producers in and takes impeccable leadership
strategic thinker and was a strategic plan largely to the Great Lakes Region’ UEGCL both at Board and management
consultant, Dr. Max address the direction the com- can’t afford to transact business levels. UEGCL is not lacking in
McKeown, in one of his pany was to take to deliver on in a manner akin to ‘beating the composition of these two
best seller books on strategic the new hydropower plants. about the bush’. Even more, with leadership levels.
planning titled `The Strategy Subsequent to this UEGCL a mission ‘to sustainably gen- Drawing from Dr. Max
Book’, opines that: “With a clever embarked on the formulation of erate reliable, quality and afford- Mckeown therefore, each theme
strategy, each action is self- a new 5-year Strategic Plan (2018- able electricity for socio-eco- in our strategic plan above rakes
reinforcing. Each action creates 2023). nomic development,” UEGCL in individual benefits but the
more options that are mutually The plan has been formulated needs nothing short of a robust collective sum of these benefits
beneficial. Each victory is not just through a rigorous and consulta- strategic plan and the commit- are mutually reinforcing and
for today but for tomorrow.” tive process, involving various ment to execute it to the letter if are not for the short term scores
The words sound sophisticated, stakeholders, and the result is a the Mission must be achieved but rather long term gains. We
but their application applies concise document that enshrines and the Vision realised. remain confident and deter-
even to the most mundane of our the aspirations of the Company The pillars of this new strategic mined to at worst achieve and
actions. Problem is, often we just over the next 5 years. plan are operational excellence, or at best, exceed on the reali-
do things without a care to plan Key among the milestones for stakeholder and reputation man- sation of this, our new 5-year
on what the results of our actions the next 5 years are the comple- agement, sustainable growth and strategic plan.
are and how better they could tion of the on-going flagship engaged workforce. Unpacking
be if we applied a little more projects, and the commencement these thematic areas is at the core Simon P. Kasyate is the Manager,
thought. It is also important to of operations and maintenance of executing this strategic plan Corporate Affairs UEGCL.
place an objective measure of in line with the Government
the result. Take for example, policy to provide employment,
choosing to work harder at and ensure affordable Tariffs
your job by putting in more through least cost-of-energy
hours gives the general feeling generation.
that the rewards will be heavier The cardinal pillars of the
and come quicker. But what is plan are to ensure; availability,
heavier and what is quicker? reliability, affordability and The Management & Staff of Ham Enterprise (U) Ltd,
What is the measure of these? the delivery of Quality elec- congratulates H.E. The President of the Republic of
And so what, with heavier and tricity services to the people Uganda, Cabinet Ministers, Members of Parliament
quicker rewards? It’s at the point of Uganda. This strategic Plan and all the people of Uganda as we celebrate the
of answering these questions that was launched in December 32nd NRM Anniversary.
one realises the need for a stra- 2017. It is imperative for any
tegic plan in the first place. organisation to have a long-
Slightly over the last three term outlook if it is to succeed
years, the mandate and obli- in its aspirations. It is impor-
gations of Uganda Electricity tant to note that UEGCL as a
Generation Company Limited Government agency has learnt
(UEGCL) changed from mere and puts into practice the Gov-
concession management of the ernment’s policy framework
Nalubaale-Kiira hydropower which is guided by a five year
complex to the development of National Development Plan,
new electricity generation facili- which is part and parcel of the
ties as well their operation and Governments Vision 2040.
maintenance. This meant it was The UEGCL Five Year Stra-
not business as usual and hence tegic Plan takes into account
the need for a strategic plan. the aspirations of the Govern-
Even more, the assignment as ment, key among which is
implementing agency for the the delivery of the Key Flag-
flagship government projects of ship hydropower projects of
Karuma (600MW) and Isimba Karuma and Isimba, while at
(183MW) meant that UEGCL the same time improving the Plot 923. Makerere Hill Road Ham Towers, Makerere 4th floor, Suite 02
had to make its governance operational efficiency of the | P.O.Box 2183, Kampala. Uganda
structure as well as its operations Kiira/Nalubale hydropower Tel: +256-414 662 855 | Mob:+256-772 885 155, +256 - 772 - 507 088
more systematic lest it falters on complex. | Email: ham@hamenterprises.co.ug
this noble but uphill task. With a vision “to be one of Website www. hamenterprises.co.ug

30 Feb 02 - 08, 2018


COMMENT
By Joseph Were
Museveni’s decision on Kayihura
Unlike what the public is hoping for, ending criminality
in the police is not the President’s biggest concern

F
ollowing recent revelations of parade at Katwe police station in Kampala reported and ignored.
shocking criminality in the Uganda before he was ordered to shut up. Police col- So the criminality in the Uganda Police
Police Force, Inspector General Kale lusion with the kiboko squad, Kifeesi and Force is not unique. It will continue under
Kayihura’s number is up it appears. other goons is well documented. Museveni new leaders or worsen because what the
Equally feeling the chill wind must be Presi- said as much after the murder of then AIGP police require operationally is not indi-
dent Yoweri Museveni who must make at Felix Kawesi. vidual change at the top but organisation-
least three serious decisions regarding the So police criminality is not news to wide change right to the bottom.
force’s politics, loyalty, and budget. Museveni. He could have acted already if Kayihura came to the force as a cerebral,
Museveni knows that 90 percent of police it was his main concern. Instead, he must clean operator. But he found a police force
officers are not criminals, although the tiny be devising a strategy that ensures the force that recruits many wrong elements from
10 percent pollutes the air so badly that it remains a political tool of his government, our sick society, trains them poorly, and
is difficult to sniff the strawberry from the that the army of boda-boda and other urban promotes some on the basis of technical
garlic. youth remain firmly loyal to NRM, and that know-who. The force is plagued by low pay
However, although the recent arrest of the Shs530 billion budget of the police force and lack of resources, functional account-
Kayihura’s ally; one Abdullah Kitata, the does mainly NRM work. If Tumukunde, ability and disciplinary mechanisms. It
obnoxiously noisy leader of the so-called Kandiho, Kaka, or anyone else can guar- finds and recruits easy accomplices in crime
Boda-Boda 2010 gang set off a heavy stench, antee these three items for Museveni, they in other state agencies and department;
treating the other security agencies like the will oversee the police. especially the courts.
Internal Security Organisation (ISO) and the Museveni is not focusing on merely But the bigger problem is that profession-
Chieftaincy of Military Intelligence (CMI) removing Kayihura because that is sim- alism is not demanded. Only political loy-
which were dreaded names in previous plistic and will not solve the problem. That alty to Museveni and relentless effort to pre-
years as angels is a mistake. Their current is because Kayihura is a problem only oper- serve Museveni’s power are required. This
leaders; including Security Minister Henry ationally. Even here, the bigger problem foments a culture of indiscipline, impunity,
Tumukunde, CMI boss Abel Kandiho and is systemic, and a result of our society and and total lack of professional standards.
ISO boss Bagyenda Kaka cannot be anti- politics. For Museveni, Kayihura is politi- Kayihura initially succeeded in turning
criminality altar boys. cally impeccable. the police around; especially when he was
The police entanglement with the under- So Museveni will calculate that generally propagating the concept of community
world has tainted Kayihura’s image and speaking, removing a police boss like Kayi- policing. He improved facilities; including
that of the police so badly that they need to hura per se does not solve operational prob- transport, regular pay, training, housing,
be scrubbed using a very strong brush and lems because the patterns of criminality and more. However, the project started stut-
a detergent that is ten times stronger than in the Uganda Police force can be seen all tering when short-term politically expedient
JIK. But Museveni knows that Ugandans over the world; from London to New York, moves and lack of resources led to more
have short memories and he has long term Brazil to Mexico, Egypt to South Africa, and reliance on criminal militias to catch other
plans. Nigeria. In fact, compared to others, the criminals or defeat opposition protests.
While many people are surprised at the criminals in the Uganda police are babies. Of course no police officer likes what is
level of police criminality, Museveni pos- Consider this: Hungary gave its police going on and the public expects change.
sibly is not. So while many commentators the biggest pay rise in history but corrup- Unfortunately, things are no so straight-
are focusing on how to end the criminality, tion persisted. It sacked 240 but corruption forward for Museveni. Under Kayihura,
Museveni most likely isn’t. remains. In Argentina the police have been the police force has got a huge budget.
The view that Ugandan police stations are involved in terrorist bombings, murder of Museveni cannot withdraw it overnight.
dens of criminals might be news to many journalists, drug trafficking, cattle rustling Yet he cannot let it fall into untrustworthy
but not Museveni. His intelligence network and more. Police officers in Brazil are hit hands.
has furnished him with even the scariest men for criminal gangs and aid drug traf- As Niccolo Machiavelli wrote in `The
bits; that the police are hiring out guns to fickers. In one incident 42 policemen were Prince’: “It must be remembered that there
criminals, aiding drug, ivory, and human paid US$1000 for each person they killed on is nothing more difficult to plan, more
traffickers, and using fake charges in extor- behalf of criminal gangs in the city of Rio doubtful of success, nor more dangerous to
tion rackets and torture and killing suspects. Branco. Another 150 policemen were hired manage, than the creation of a new system.
Museveni must have seen a video that by powerful landlords to murder hun- The initiator has the enmity of all who
aired recently of policemen battering an dreds of squatters on land. The cases were would profit by the preservation of the insti-
NBS TV journalist reporting on criminals quashed in courts after judges were bribed. tutions and merely lukewarm defenders in
who confess to be police collaborators in In Los Angeles, USA, up to 70 police offi- those who would gain by the new one.”
crime. One collaborator, ex-convict Paddy cers went on trial for routinely beating and This means Museveni will reflect deeply
Sserunjoji alias Sobi, in December shook shooting suspects, planting fake evidence, about the individuals to select to sort out
airwaves when he confessed on TV to and lying under oath. In New York City, the police. It means criminality in police will
killing people. Another criminal had told USA, two police officers sodomised a man remain because Museveni’s decision will be
IGP Kayihura the same thing at a suspects’ with a stick at a police station. The case was political, not operational.

Feb 02 - 08, 2018 31


A
By Flavia Nassaka

new condom
said to
be more
pleasurable is
undergoing
tests to be
used in Uganda. The ‘panty
condom’, as it is called,
has already been given a
greenlight by the Uganda
National Council for
Science and Technology.
The condom is a
combination of lingerie and
a contraceptive made of
polyurethane and intended
for a one time use. It is
anti-allergic and has been
made with thinner than
usual layer meant to make
one have a no-condom feel,
says Dr. Moses Muwonge,
the Executive Director
SAMASHA Medical
Foundation, a local non-
profit promoting the
condom.
Made by a Columbian
manufacturer, Innova

‘Panty Condom’ hits


Quality, the condom is
likely to hit the market
by October, according to
Muwonge. This will be after

Ugandan market
six months of acceptability
studies expected to start at
Makerere University soon.
Once they are on
the market, Muwonge
anticipates that Uganda will
be the hub of the device
on the continent because Experts say it is more pleasurable and
his non-profit has secured
a contract to supply the
condom to the whole of
puts power in the hands of women
Africa.
Muwonge is excited that
women will this time have day and only expose the condom use in Uganda This group is also the most
something that puts them in device when about to have by the Ministry of Health affected by HIV in Uganda.
control. intercourse. “You only have revealed that female Preliminary results of the
“Women are frustrated by to flip the slit”, Muwonge condoms were mostly being Uganda Population based
men who don’t want to use says as he demonstrates taken up by sex workers but HIV Impact Assessment
condoms,” Muwonge told how it is used. The panty Muwonge is not targeting survey released last year
The Independent, “We are has an opening which these. show prevalence among
now telling them that don’t exposes the condom that He is aiming for a stylish this group of 15 to 24 years
remove your panty if you looks no different from corporate lady, a young was at 7.6% compared to
are not sure your man has the current male condom. woman or an adolescent males at 4.7%.
condom. This panty is your Once exposed, the condom girl. This is partly why But Muwonge says the
security.” unrolls on the penis during the condom is in form of new condom targets men
He explained that one penetration. a G-string, a type of panty too. For him, once men
can wear the panty all A 2009 study on female popular among that group. realize that if they do not

32 Feb 02 - 08, 2018


health

carry a condom, a woman will have were higher at 41% for the males and embrace the female condom, at least,
one they will also start carrying one. 54% for the females in 2016, there to the success of the male condom. Of
In addition he says, the panty looks was a decrease from 62.7% among the 240million condoms needed every
good for both sexes. males in 2011 and yet the percentage year, only 2million is the current need
of females remained unchanged even for the female condom.
‘A search for a more pleasurable after five years. “Women still find it weird,”
condom’ Overtime, Kibirige says he has Kibirige says, “They say it’s hard to
learnt that for a condom, whether put on.”
Vastha Kibirige, the Condom male or female, to be used, there Muwonge sees no excuse in not
Coordination Officer at Ministry of needs to be a lot of promotion using the panty condom. He says
Health, who has been in the condom activities done. they inverted it after studying the
business for more than twenty years She says condom programming flaws in all the old condoms on the
is as excited and full of anticipation is four times the cost of the product market and that with it, one can be
as Muwonge. This is exactly how and thus having the product alone able to change positions during sexual
Kibirige and her colleagues at PATH doesn’t help. This is partly because, intercourse.
an NGO that specializes in health she says, they didn’t have resources But Uganda Health Marketing
innovation felt in 1998 when a to dispel the myths and teach many Group (UHMG)’s Timothy Damulira
‘Fermidome’ also known as FC 1 was people how to use the device that the is concerned about innovation and
introduced in Uganda. FC1 failed to survive its fifth birthday sustainability on the market.
“We said finally women have got in the country. By 2003, when the He says anything that concerns a
something they can control” she condoms were to expire, their stores change in behavior requires constant
said,” we got a million condoms and were still full. innovation and information because
divided them. We planned to give out people tend to suffer from exhaustion
half through the public sector and using one product for a long time. For
half through social marketing.”
But he says that most of the women Market him, the search for a more pleasurable
condom continues.

volume has
looked at the condom—a large Indeed, UHMG continues to
slippery device with a ring at the innovate even when they have already

increased
bottom-- as something weird. built a brand in the contraceptive
“The attitude is already very world. They recently ferried in a
bad,” Kibirige says, “Someone looks new brand of male condoms that is
at your face and says this thing is from chocolate scented and of a golden

89million
terrible. And, yet it is a life saving color.
commodity”. Muwonge’s condom just like many
However, Kibirige is now optimistic on the market is planned to be sold

condoms
that the panty might work because, he both through the public sector, social
says, the challenge has always been marketing and commercially for

in 2012 to
finding a more pleasurable condom. those who can afford to buy out of
Uganda has about 30 brands of the pocket. On the market, a packet
condoms on the market. A condom of condoms costs between Shs2000
market survey done by the Ministry
of Health in 2016 shows that while
179million in and Shs20,000 whereas the subsidized
ones sold through social marketing go
there were 19 brands of condoms on
the market in 2011, they had risen
2016 for as low as Shs500 per packet.
A 2016 condom use study by the
to 28 brands by 2016. At the end of Ministry of Health revealed that the
2017, another contraceptive giant DKT value of the total condom market
International based in the US joined “Even in areas that were still was estimated at $88million, a 95%
the market with its KISS condom demanding the condom,” she added, increase from the market value in
targeting the middle class. In total, “we later found out they were not 2011. Commercial contributes to
the market volume has increased using them for their purpose. In only 2% of the condoms used in the
from 89million condoms in 2012 to Karamoja for instance women wanted country, 19% are sold through social
179million in 2016. the ring to use it as bangles. Almost marketing. The majority get their
no one in western region was asking condoms free through public sector
‘Only 19% can use condoms well’ for the condom” she recalls. at 79%.
However, Kibirige says that while Many other complaints came too In 2016, approximately 336 million
all these brands are on the market, as she recalls some saying the ring condoms were needed to cover all
condom use amongst both men and was uncomfortable, others it was risky sex acts in Uganda, about 212
women appears either stagnant or on noisy during intercourse. Stories that million more than were needed in
the decrease. Between 2011 and 2016, the condoms were sliding away and 2011. In 2011 alone, the need exceeded
the percentage of males and females getting lost in the body also appeared condom distribution by 67%.
using condoms increased slightly. to worsen the situation. Muwonge hopes the panty condom
In 2016, 21.5% of males and 21.3% Very soon an improved version FC2 will spring its own surprises .
of females reported using a condom came to the market with a smaller
the last time they had sex compared ring making it easy to insert and
to only 19% of males and 12% of made of polyurethane, giving it a
females five years prior. Among the no-condom feel. But still, Kibirige and
unmarried youth while the figures her group have failed to get women to

Feb 02 - 08, 2018 33


ART | BOOKS | SOCIETY | TRAVEL | CULTURE

By Dominic Muwanguzi

Samson Xenson Ssenkaaba


Top five ride it. The performance that lasted a few
minutes left her dripping with sweat as the
audience looked on in disbelief. Presently

artists on
X
pursuing an international art residence in
enson is a first class graduate of Europe, Mali is an undisputed influence on
the School of Industrial and Fine the local art scene and beyond.

the Kampala
Arts at Makerere University and
his name is synonymous with Eria“Sane” Nsubuga
colossal experimental artwork produced The strength of this lanky artist lies in

Art Scene
from both indigenous (barkcloth) and his invoking political satire in art. As such,
synthetic material. He is a multi-media Sane is a political satirist with a knack of
artist blending elements of fashion, fusing artistic parody with political evils.
poetry and hip-hop culture in his artistic The motive for this blend is to create
practice. His performance of Ensi yaleta simple understanding and interpretation
at the Johannesburg Art Festival 2015 of complex subjects like immigration, neo-
and Musisi at the itinerary exhibit Kabo colonialism, racism and homosexuality
Ka Muwala 2015 held at Makerere art for his audience. Another trait of his art
gallery, highlighted his creative ingenuity is to invoke academic theories of political
and elicited a standing ovation for the revolutionaries in his art in order to evoke
youthful artist. But it is GunflowerMask the idea of authenticity in his narratives.
2017 that got everyone talking on the Exhibitions like Abaneene 2014, Black
Kampala art scene. In the exhibition, Faces, White Masks 2015 and Creases
Xenson demonstrated his exalted and Tears 2017 share this common
proficiency at pushing the boundaries of characteristic. Sane’s deep conscious of
art. He exhibited Photography, Painting inspiring such political discourse to the
and Installation in large scale and with public through art makes him a bold artist.
attention to detail. His artistic narrative Few artists on the local scene are brave
was largely dominated by the global enough to use their craft to interrogate
current situation that includes issues of political injustices. It is a venture they think
immigration, neo-colonialism, exploitation will land their art into jeopardy. With such
and material culture. With such energy, brevity, the PhD student at the University
skill and genius mindset, Xenson is fast of Southampton, England has showcased
transforming the local art scene from a at the Johannesburg Art Fair, Kenya Art
mediocre landscape to a vibrant one. Fair and Paris Art Fair, France.  

Sanaa Gateja Ronex Ahimbisimbwe


He is known as the paper bead King Immaculate Immy Mali What Ronex cannot say in speech,
locally and internationally. The ability to he will say eloquently in his art. He is
recycle paper into colourful beads with a She defies the stereotype that experience undoubtedly known as the trendsetter of
motive of inspiring a visual narrative of comes with age. This young artist has technical innovation on the local art scene,
recycling and figurative representation probably had the most illustrious art and this he continuously emphasizes
of day to day life experiences, endorses career, any artist on the local art scene with art that is a creative blend of
him as a uniquely creative artist. He also would dream of. She makes art out of her technical dexterity and the power of the
works with barkcloth as a symbol of own life struggles, and that perhaps is subconscious. He is a multi-media artist
blending the traditional art practices with an added advantage because her stories working in painting, digital art, sculpture
the contemporary. But it is the stories are both genuine and heart-rending. Her and installation. Nonetheless, his art is
he tells with his art that capture the installation Virtually Mine, at Kabo Ka dominated with figurative contrasts of
audiences globally. He is keenly aware of Muwala exhibition was poignant. She simplicity and complexity, naivety and
the global political and social landscape worked with small glass panel inscribed sophistication, and beauty and ugly.
and as such, constructs his installations to on with WhatsApp messages. The This technique stimulates visual inquiry
respond to such conversation. His large- dangling glass panels demonstrated her into his art culminating into a myriad of
scale installation Paths is a response to the fragile relationship with her boyfriend answers and questions from the audience.
subject of immigration that is a hot topic in who lives overseas. Such long distance Unlike his contemporaries who create
Europe. Similarly, his popular figurative love is delicate and is either sustained or art to entertain and convey a particular
installation of a pair of spiritual deities: destroyed by social media discourse. As message, Ronex primary motive is to elicit
woman and man convey the message if that was not emotional enough, she set dialoguefrom the public. As such, he’s
of African spiritualism in an era of neo- out to perform Safe Here at Kampala Art eager to move art outside its comfort zone
colonialism. Sanaa has featured at the Biennale 2016. Mali, albeit her physical of an elitist audience
Johannesburg Art Fair, Paris Art Fair and inability in the right leg, struggled to
recently at AKAA Art Fair, Paris 2017. find balance on a bicycle, so as she could

34 Feb 02 - 08, 2018


book

Bank of Uganda's golden odyssey


E
very book should have a purpose. human resource management
And commemorative books ap- practices, and Corporate Social
pear to make this easy for Responsibility are also docu-
the publisher because they mented.
are purposely obvious; especially A turning point for the bank
if an anniversary is inked in. was the promulgation in 1993 of
However, to produce really the Bank of Uganda statute which
great work, there is catch. The guar- delinked it from the public service and
anteed budget (whether big or small), ring-fenced areas of its autonomy. It was
the easy access to source material, and a happy moment but also challenging.
the collegial spirit around the project The team that put this book has a
require creativity to manage team record of excellent work. Even when,
expectations. as in this case, instances of paucity in
I was recently reading Bank of Ugan- analysis (especially in tracing how the
da’s commemorative book to mark Title: The Golden Odyssey: monetary policy challenges have evolved
its 50th anniversary (1966-2016) when Bank of Uganda 1966-2016 since 1966 and some of the drama of
these thoughts intruded. Under the title grand decisions the Central Bank gover-
`The Golden Odyssey’, the coffee-table Publisher: Bank of Uganda nors have had to make), and lack of rigor
style publication is a picture perfect ren- Reviewer: Joseph Were in expert recollection and documentation,
dition in book form of what is known it is clearly a resource imperative and
in the corridors of the central bank as not a dent on execution. Some laughable
the `Bank of Uganda way’. It is a culture independence central planning to present memories include the fuss in 1999 over
that the committed staff members describe day market-driven liberalism and incessant the so-called year 2000 “Millennium Bug”,
as “the aspiration for excellence”. And this innovations in a globalised environment. which was predicted to strike and wipe out
tendency shines through the book. From its cover page, which boasts a per- all unsecured data but didn’t happen.
Compiled by a joint Bank of Uganda fectly framed photo of the Bank’s old and When a speech Dr. Ngozi Okonjo-Iweala(
editorial team and external consultants led new bank head office buildings to epito- former managing director, World Bank)
respectively by the central bank director of mise the journey, the book records mainly gave as part of the Joseph Mubiru lectures is
Communications, Christine Alupo and con- success. The other archival photographs tell reproduced, it is inescapable that the inter-
sultant Chris Wasswa, it offers the reader a equally amazing stories. esting topic she tackles; `African Central
peek into the inscrutable vaults of an institu- It is a masterfully crafted tale of records, Banks: Rethink the role or stay the course?’
tion whose invisible hold on the country’s recollections, and conjectures of members of would have been enriched by local nuances.
monetary sector touches everyone. an army that has kept an eye on economic Instead, it is the deftness of the editorial
It shows how, over the years, the men transactions with the rest of the world, team that shines through as they attempt to
and women behind the walls on Plot 37/45 ensured that commercial banks oper- fill the space with speeches of such distin-
Kampala Road have strategised, negoti- ate smoothly, and prices flow smoothly; guished financial managers.
ated, and plotted to ensure that the shillings remaining relatively stable and changing The missed opportunity for articulating
retains its value in a turbulent currency only as they should. the vision of Bank of Uganda is most felt
environment and everyone with money Narration of technical, management, in Part II: Core Mandates, Part III: Exter-
in any commercial bank sleeps soundly, operational and statutory developments nal Perspectives, and Part IV: The Future.
knowing there is a force watching over their delves into issues of security, integrity, and The evolution of the central bank’s core
mostly hard-earned savings. continuity of financial sector. It is exciting mandate from 1966 when the East African
The book’s purpose is to tell the story of to read about how innovations emerged to Currency Board divested its roles to the
the bank’s evolution through the actions protect deposits in an environment shift- respective member states central banks.
of its leading men (yes men, as only a few ing from analogue to digital and national Even present day Inflation Targeting-Lite is
women shine through; current bank secre- inward-looking to increasing global inter- treated fleetingly yet the switch from focus-
tary Susan Wasagali Kanyemibwa and Janet connectivity. ing ensuring exchange rate stability to price
Kahirimbanyi from the past and the impor- It is difficult to imagine that at one point, stability deserves more than the paragraph
tant spouses of the period; Janet Museveni, the Bank’s most hi-tech equipment was the it’s given.
Miria Obote, and Teopista Mubiru). IBM AS/400 with storage capacity of just The 50 year anniversary was marked as
Through twists and turns, and creativ- 2GB. the bank was embarking on the fourth cycle
ity, courage and tragedy, they are revealed It covers the evolution of policy and of its five-year strategic planning round
as masterful players on a financial sector strategies to protect deposits, including the starting in 2017. Launched in 2002 under a
stage built on challenging political tapestry inception of digitalisation, the emergence new strategic planning philosophy; the cur-
on which the mysterious murder of the of mobile money and payment services, rent cycle runs up to 2022. Over this period,
Bank’s first governor; the exceptionally bril- to grappling with new challenges like the important developments are envisaged;
liant and brave Joseph Mubiru casts a dark Petroleum Fund as custodian of the US$250 including the establishment of a common
cloud. million taxes from Tullow oil and a Petro- EAC currency by 2024, through the EA
Fortunately, the Mubiru murder under leum Revenue Investment Fund, the credit Monetary Institute, an East African Central
Idi Amin is also an emotional charge that reference bureau, Islamic banking, bancas- Bank. In reality, however, this book shows
makes any successes in the turbulent years surance, agent banking and more. that nobody actually knows what will hap-
since more poignant; especially the steer- The soft side of sports and culture pen. Instead, it is a near perfect prototype
ing of the economy from the years of post- (including a powerful choir), impeccable for recording the next 50 years.

Feb 02 - 08, 2018 35


Schoolboy’s journal entry questions Columbus ‘lies’
A young schoolboy, a powerful entry in his off but I want you to not
King Johnson, recently journal, noting that “there teach me lies. That is all.
challenged his teacher fol- were lots of people who My question for the day is
lowing a lesson on ‘the man were already living on the how can white people teach
who discovered America.’ American continent.”Today black history?” Apparently,
Christopher Columbus is was not a good learning the teacher appeared unim-
widely remembered in his- day,” Johnson wrote. Blah pressed with Johnson’s take-
tory as having discovered blah blah. I only wanted to down, and wrote in red pen
America. But Johnson didn’t hear you not talking. “You about being “disappointed”
hold back in his account, said something wrong and I by Johnson's efforts. While
and clearly wasn’t afraid to can’t listen when I hear lies. Johnson’s teacher might not
tell his teacher exactly what Columbus didn’t find our have thought much of his
he thinks about the lesson. country, the Indians did. I thoughts - everyone else
He reacted to the class with like to have Columbus Day thinks he’s done a good job

Bar bans customers from saying ‘most Pet Chicken


annoying word in the English language’ gets Obituary
A bar has literally banned confines of his boozer. Gram- but his hatred of the word is
A Texas chicken has received an
customers from using the mar pendants are quick to air real. Phrases such as ‘It’s all
honour few, if any, other birds get
word ‘literally’ in a bid to their disgust. These days, the good,’ ‘You know what I’m
— a formal obituary. The obituary
quash the rise of ‘Kardashian- word ‘literally’ is often used as saying?’ and ‘My bad’ also
of “Big Mama”, a 6-year-old Rhode
ism.’ The usage of the word a crutch word, and arrived on inflame his rage. “What’s
Island Red, appeared recently in
has risen in recent years, the scene as such around the annoying is people aren’t even
particularly among younger time young people started say- aware they’re saying it. How a local newspaper based in Bryan,
generations. The owner of ing ‘like’ unnecessarily. Worse could you be so unaware of Texas. The obituary noted that Big
dive bar Continental in New still – at least in the eyes of your words that it’s coming Mama initially had been raised in
York’s East Village has been some – is people using literally out every couple minutes?” an apartment in Houston. It is here
so upset by the erroneous when they mean figuratively. Some drinkers have come out that her previous owners took her
placement of ‘literally’ that he Trigger Smith also admits that in support of Trigger’s notice. to be euthanized in 2013, when
has totally banned it from the the policy is tongue-in-cheek, Most fail to see the funny side. a compassionate veterinarian
instead had them relinquish their
rights to the chicken so she could
Woman answers marriage advert on Facebook find a new home. Big Mama was
adopted by Stephanie and Gregory
as a joke, gets married a week later Sword and their two sons, who
live in College Station. The family
to say I do and I am wasting no time. Send in said in the obit they were “hooked
your applications.” The most qualified will instantly” after seeing a photo of
be married on 6 January, 2018. Application the bird. The chicken recently died
closes 12 midnight, December 31, 2017. I am in her sleep, at her favorite spot in
serious about this and don’t say you did not the chicken coop, the Swords told
see it on time. Goodluck.” Amedu received local media. “We’re just hoping
a few responses from interested parties, but that the story of Big Mama will
the one that caught his attention came from remind others that every life, even
Sophy Ijeoma, an acquaintance he barely knew. that of a chicken, is valuable and
“Am interested, just DM me…lols.” After two worth saving.”
hours of conversation, Amedu asked Ijeoma
to meet his uncle. It was after we met the
Nigerian makeup artist, Sophy Ijeoma uncle and his wife, that I realized that this
decided to comment on an acquaintance’s could actually happen and I wanted it.” The
Facebook marriage advert as a joke but she couple decided to keep their momentum and
never imagined she would marry the man seek the approval of Ijeoma’s family on the
seven days later. The day before New Year’s same day. It was official – Amedu and Ijeoma
Eve, Nigerian furniture maker, Chidimma were engaged to be married all within hours
Amedu, decided it was time to find a wife of meeting. All went well, and on January 6,
and posted an advert on Facebook, asking all 2018, the couple officially became husband
women interested in becoming his wife to reply and wife, in a traditional Igbo ceremony.
to his post. It read: “Am of age and I am ready

36 Feb 02 - 08, 2018


Kia reveals
upgraded K5 sedan
Car maker, Kia has revealed an upgraded K5 sedan in
South Korea offering a new look of the new 2018 Optima.

B
ringing fresh front and rear de- cruise control and lane assist systems to we did have a strategy in place for Optima;
signs, new alloy wheels and more provide semi-autonomous high-speed func- how we’re going to handle it, put it back
technology, the facelifted mid-size tionality. into the market and make it more competi-
sedan features a more aggressive However, despite the fact the Optima tive.
front bumper with three-part lower LED was the only Kia model to decline in popu- “I think that we will have to review that
lamps instead of foglights and a revised larity last year, when the new Stinger large with what we saw in Detroit, with the new
grille with vertical slats. sedan was launched with a $45,990 starting Cerato sedan. It’s a big car. I think the top
Out back there are fresh LED tail-lights price, it’s clear that Kia’s direct rival for the end of the Cerato sedan will put pressure
atop a reshaped rear bumper with relo- Toyota Camry and Mazda6 will not be dis- on the Optima, so we’ve got to rethink that.
cated reflectors and new contrasting-colour continued. “Personally I don’t want to cut it [Opti-
diffuser element with twin oval exhaust Chief operating officer Damien Meredith ma] loose at all, but we’ve got to make sure
outlets. recently told motoring.com.au that Kia Aus- it fits in between the new Cerato sedan,
Inside, there’s a different four-spoke mul- tralia was currently rethinking its Optima which is a bigger car, and obviously the
tifunction steering wheel, new LED ambient strategy, in light of the Stinger’s success Stinger.
interior lighting and revised trims including and the mid-year arrival of the Korean car- “We’ve got a bit of homework to do on
a luxurious quilted leather option. maker’s larger new Cerato sedan, which itIt’s not as easy as just re-pricing the car
Finally, Kia has fitted an updated info- debuted at the Detroit motor show earlier and de-speccing it and things like that.
tainment system with surround-view func- this month. We’ve got to work smarter than that.”
tionality and new driver aid called High- “There’s two issues we’ve got to look
way Assist, which works with the adaptive at,” said Meredith at the time. “One is that Source: Motoring.com

Feb 02 - 08, 2018 37


Profile
Male Mabirizi on managing
a contentious life
By Agnes E Nantaba family division court to forward his com-

H
plaints through an adult.
assan Male Mabirizi Kiwanuka was “My father was summoned after which
largely unknown until Aug.29, 2016 he agreed to pay the fees but still banned me
when he sued Buganda’s King Ron- from returning to his home,” Mabirizi said.
ald Muwenda Mutebi II over the Despite being banned from home, Mabirizi
land registration rationale in Buganda. continued with school when the then head
Being a Muganda and as such the King’s teacher at Crane High School in Kampala
subject, to many, Mabirizi did the unthink- offered him a vacancy in the boarding sec-
able when he accused the former of illegally tion. This meant hard work and persever-
collecting land fees through the Buganda ance for the half orphan whose mother had
Land Board (BLB). passed on while he was still in Primary
Mabirizi says he had to follow his con- Two. At the end of the four years, Mabirizi
science even though the move appeared too was the best candidate at the centre with
contentious. Perhaps, it is the very reason he eight aggregates in the best six subjects.
could hardly find any lawyers to represent This performance earned him a place at
him in court. Luckily, Mabirizi was a lawyer Kawempe Muslim Secondary School and
and decided to represent himself. also made his father offer him financial
“The Kabaka has so many subjects and and other logistical support.
supporters some of whom believe that suing While here, Mabirizi worked even
him is demeaning,” said Mabirizi, “Many fear harder in order to qualify for government
to be associated with such a case”. sponsorship and pursue his dream course
Born in 1987 to Mohammed Mutumba and of Bachelors of Laws at Makerere University.
the late Ndwaddewazibwa Mastula, Mabirizi Indeed, Mabirizi was among the excellent
has never been the kind to back down. Apart performers with 25 points, which earned him
from the that case, in December last year, a place at Makerere University. During his
Mabirizi petitioned the Constitutional Court second year at the university, Mabirizi started
challenging the process through which Par- a money lending business from his savings
liament passed the controversial Bill on the as a taxi conductor during the long senior
amendment the Constitution to remove the six holidays. He still earns from that
presidential age limit. money lending business
Mabirizi filed the suit against the Attorney on top of his legal
General in his own capacity as a concerned profession
citizen, contending that the actions of Par-
liament to consider and grant leave to Mr
Raphael Magyezi [Igara West MP] to table
a Private Member’s Bill when the Leader of
Opposition in Parliament, Opposition Chief
Whip and other opposition MPs were not in
the House, was in contravention of the Con-
stitution.
While Mabirizi has just caught the atten-
tion of many people for this fearlessness, he
says he has always been like this.
In his early days in secondary school, he
refused to apologize to his step mother on the
orders of his father and other relatives. The
stepmother accused him of disrespecting her
and when he refused to apologise, the rela-
tionship between them got worse.
As a result, Mabirizi was chased away from
home and his father also refused to continue
paying his school fees.
In an effort to stand up for his rights, the
16 year old decided to sue his father for neg-
ligence and neglect of his fatherly duties. But
being a minor, Mabirizi was advised by the

38 Feb 02 - 08, 2018


Q&A

Male Mabirizi’s Liteside


Any three things we don’t reservations. What is the quality you most What is your most treasured

I
know about you? like in a man? possession?
am always ready to stand What is the trait you most de- Being straightforward and It has to be my conscience.
up for my rights. I so much plore in others? honest.
want to defend my con- Some people don’t mind What do you regard as the
science and I don’t mind selling their conscience and What is the quality you most lowest depth of misery?
what others say. Even when that practice is hard for me to like in a woman? A child losing a mother is
I loose, my conscience will be tolerate. Being straightforward and incomparable. It comes with
clear that I fought and lost the honest. so many challenges and deter-
war. I can only do business be- Which living person do you mines the future regardless of
cause I can’t imagine how I can most admire? What or who is the greatest whether your father and pater-
survive in a public office where I may not be able to point to love of your life nal relatives have the resources
many are prone to corruption. one person because I pick a few In my grandmother, I had or not. Every child needs a
good points from an individ- a confidant but she has since mother’s guidance.
What is your idea of perfect ual. I don’t know of any indi- passed on and no one has
happiness? vidual who I admire wholly. replaced her. What is your favorite occupa-
If I do something which tion?
is up to my conscience, I am What is your greatest extrava- When and where were you Being a money lender.
happy. gance? happiest
I spend a lot on my clan The moment I scored 25 What do you most value in
What is your greatest fear? activities. points in my A-level exams your friends?
There could be challenges was not only definitive but also Once transparency and hon-
but I am not scared to encoun- What is the greatest thing you an assurance of admission to esty are breached, I close that
ter them and once done tact- have ever done? Makerere University to pursue chapter.
fully, you win. Standing up for my rights law. I had gone through a lot so
while holding onto my con- it was a very big climax. Who are your favorite writers?
What is the trait you most de- science. On May 6, 2017 when I won I am an ardent reader of legal
plore in yourself? Kabaka in the discovery appli- documents so I am not attached
My voice tends to be so loud, What is your current state of cation when Court ordered to any writer.
which makes some people mind? to produce the documents.
think that I am so arrogant. I am happy. So much had been said with Who is your hero of fiction?
At times, I am quick a lot of scary utterances on I am a fan of physical fiction
to anger and What do you consider the how the Kabaka can never be and Charles James Ssenkubuge
never hold most overrated virtue? challenged. It was a very big does it for me.
back to my Some people speak more milestone.
than they act. For instance, on Which historical figure do you
this Kabaka land issue, many Which talent would you most most identify with?
people were aggrieved but few like to have? Nelson Mandela did it: he
could stand up to take action. No other. stood to his word, suffered a
At the end of the day, it doesn’t lot and at the end of the day, he
solve the problem at hand. If you could change one thing wasn’t too greed to rule for life.
about yourself, what would
What does being powerful it be? What is your greatest regret?
mean to you? Absolutely nothing. I am a perfectionist. So, once
You only become powerful I make a decision to do some-
when you comply with what If you were to die and come thing; I offer my best to leave
the law says. back as a person or a thing, no room for regrets.
what would it be?
On what occasion do you lie? As a human being and the How would you like to die?
All individuals lie for one same person doing the same I wish I could die past at least
reason or another. things. 70 years just in my sleep but
not outside Uganda.
What do you most dislike Where would you most like
about your appearance? to live? What is your motto?
I am perfectly made. Uganda is my country and Make transparency and con-
even if it has challenges, the sistency your own
Which living person do you duty is upon us to solve them
most despise? and make it a better habitable
I don’t despise people. country.

Feb 02 - 08, 2018 39


Global comment
By Kaushik Basu
Africa’s arrival
The latest African Development Bank (AfDB) Economic
Outlook for 2018 predicts 4.1% average growth

T
he African Development Bank regional cooperation led to a decline last couple of decades, the country has
(AfDB) has just published its in poverty and a pickup in growth. made great strides in export-led growth,
African Economic Outlook for 2018. Commodity exporters faced a setback supported by a growing industrial sector
This year’s revamped publication around 2014, when prices plummeted. and large investments from China. Now,
– shorter than usual, analytically well- But this turned out to be a blessing in it is poised to take over as the economic
structured, and written in lucid prose, disguise, because it forced countries to powerhouse of East Africa. Yet the urban
without hyperbole – in some ways mirrors diversify their economies and increase youth unemployment rate stands at
Africa’s own transformation, as it raises production – factors that supported 23.3%. Left unchecked, this situation
hopes that we may at last be witnessing the renewed growth. could easily end up fueling ethnic
continent’s long-promised economic arrival. According to the AfDB report, Africa’s conflict and political turmoil.
Africa’s rise has been a long time 54 economies grew by 2.2% in 2016, on Another, related challenge concerns
coming. In the 1960s, hopes were average, and 3.6% in 2017. In 2018, the resource mobilisation: countries need
high. The remarkable leaders of the AfDB predicts, average growth will funds to invest in infrastructure, human
independence generation – such as accelerate to 4.1%, while the World Bank capital, and the creation of trade and
Ghana’s Kwame Nkrumah and Kenya’s expects Ghana to grow by 8.3%, Ethiopia digital links within and beyond Africa.
Jomo Kenyatta – received advice by 8.2%, and Senegal by 6.9%, placing The AfDB report estimates that, for
from the world’s top economists. these countries among the world’s infrastructure investment alone, the
The Caribbean-born Nobel laureate fastest-growing economies. And these continent needs some $170 billion per
Arthur Lewis became Nkrumah’s Chief figures are not wishful thinking: in 2016, year, which is $100 billion more than is
Economic Adviser. Ethiopia’s GDP grew by 7.6%. currently available. As it stands, Africa
In India, we read about these Of course, serious challenges remain. receives a total of about $60 billion in
leaders’ friendship with our own post- South Africa, the continent’s strongest foreign direct investment each year.
independence prime minister, Jawaharlal economy, is now facing the difficult task To close the gap, African governments
Nehru, and the hope for a new dawn of tackling its deep-rooted corruption. must attract more money. That will
for all emerging economies. And many Yet, with the African National Congress require establishing effective regulatory
emerging economies did indeed take now apparently determined to replace structures that facilitate long-term
off. In the late 1960s, some East Asian President Jacob Zuma’s scandal-ridden borrowing and repayment, while
economies surged ahead. Beginning in administration with one led by the ensuring that lenders do not exploit
the early 1980s, China began its decades- party’s new leader, Cyril Ramaphosa, borrowers, as has occurred everywhere
long rise. And, from the early 1990s, there is reason for hope. from rural India to the United States
India’s economy also began to grow More broadly, many African countries mortgage market.
robustly, with annual rates reaching the need to find ways to create more The challenges are daunting, to say
9% range by 2005. employment – and fast. The share of the the least. But there are lessons that
But Africa remained stagnant, mired in working-age population is rising faster African countries can learn from one
poverty. Ironically, it was the continent’s in Africa than in any other region. This another. For example, Ghana’s smooth
resource wealth that hampered economic “demographic dividend” has immense transfer of power after the December 2016
progress, as it fueled conflicts among potential. But if job creation stalls, the election set a positive democratic example.
governments and insurgents eager unemployed or under-employed are Nigeria’s Lagos State and Tanzania have
to control it. The resulting political likely to become frustrated – a recipe for done a good job of mobilising internal
instability attracted outsiders keen to conflict. resources for development. Add to that the
exploit governments’ weakness. As Consider the case of Tanzania. Thanks emergence of an indigenous intelligentsia
the Indian poet and Nobel laureate to President John Magufuli’s effort in the region, exemplified by organizations
Rabindranath Tagore put it in his 1936 to mobilise more domestic revenue like the AfDB, and it seems that Africa’s
poem “Ode to Africa,” which played on to support increased development moment may have arrived at last.
perceptions about who is “civilized,” spending, the economy is doing well.
the continent fell prey to “civilization’s But, with roughly 800,000 individuals
barbaric greed,” as the colonists “arrived, entering the labour force each year, Kaushik Basu, former Chief Economist of the
manacles in hand/Claws sharper by far Tanzania needs much more working World Bank, is Professor of Economics at
than any of your wolves.” capital, better infrastructure, and Cornell University and Nonresident Senior
Finally, at the turn of the twenty- educational reform aimed at ensuring Fellow at the Brookings Institution.
first century, things began to change that workers have the skills, resources,
for Africa. A few dynamic leaders, and opportunities to secure decent jobs.
democratic stirrings, and emerging The same is true of Ethiopia. In the Copyright: Project Syndicate, 2018.

40 Feb 02 - 08, 2018


We are live everywhere, Always

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