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News analysis Health Business

Museveni reversing 30 Your recurrent Medical, agric boost


years of privatization miscarriages insurance premiums

Issue No. 572 May. 17 - 23 2019 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

Bobi Wine
and Besigye
Who gains, loses
in partnership?

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May. 17 - 23 2019 1
INBOX

Issue No. 572 May. 17 - 23 2019

News analysis Business Health Arts Motoring

Cover story
Bobi Wine and Besigye
Who gains, loses in partnership?

5 The Week
30 Comments
Senior State attorney speaks
out on sexual harassment Indicting the ICC :In the
17 years since it began
operating, the ICC has
9 The Last Word
secured lasting convictions
A preliminary peep at 2021: The against only six peopl
things opposition parties should
ignore and those they need to focus
32 Health
on to have a chance in 2021
Your recurrent miscarriages:
14 Analysis Could your man’s damaged sperm
have a significant role in them?
Museveni reversing 30 years of privatization: Will
government enterprises that failed under the 1990s
inefficiency fare any better with current corruption?
35 Arts & Culture
27 Business
Medical, agric boost insurance Cliff Kibuuka’s metropolis:
premiums: Insurers record a 17.5% Artist shows off his immense
growth in gross underwritten love for Kampala
premiums to Shs856bn in 2018

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

PUBLISHER: Independent Publications Limited, Plot 82/84, Kanjokya Street, P. O. Box 3304, Kampala, Uganda
Tel: +256-312-637-391/ 2/ 3/ 4 | Fax: +256-312-637-396 E-mail: editor@independent.co.ug | advertising@independent.co.ug
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2 May. 17 - 23 2019
Offline

“You decided that the people of Apaa must


evacuate their land. Your Excellency, the
decision that you came up with, I would
like to say is very poor, so primitive, very
barbaric with ill intention,” Gilbert Olanya,
Kilak County MP

An artistic impression of the Aga Khan University Hospital to be built in Nakawa Kampala starting
in July. It will be a 600 bed facility with 100 beds in the first phase/   COURTESY PHOTO PPU.

Volunteers
practice smiling “Those in the People’s Government cannot
by biting
chopsticks just come in and sideline us, we have been
during an
etiquette
there with Kyagulanyi, we started the
training PROJECT while they were looking on and
session for now they are coming to put us aside, no
the second
National Youth way.”Michael Mabikke of the DP bloc
Games in
Taiyuan, Shanxi
province,
China, on May
8, 2019

People carry
portraits of
their relatives,
World War II
soldiers, as
they take part
in the Immortal “If you look from outside, you see two
Regiment March
on Nevsky countries that are so close historically,
Avenue in politically and socially that you cannot see
downtown Saint
Petersburg, how they can fall into a situation of real
Russia, on May differences.” EU Ambassador Attilio Pacifici on
9, 2019 Uganda-Rwanda relations

Applicants for judges Ugandans who say Money EU gave


25 at the Constitutional
Court
60% country is headed in
wrong direction Shs84bn to Uganda for
budget support

May. 17 - 23 2019 3
week
Constitutional court quashes Police summons
Anyone sum- Ntende, Justice
moned by police to Cheborion Barisha-
record a statement ki and Justice Eze-
will be under no kiel Muhanguzi.
obligation to com- The judgment
ply, the Constitu- followed a 2010
tional Court ruled petition filed by
unanimously in a the then UPC party
landmark case. The Kenneth Kakuru Owiny-Dollo president, Olara
ruling also nullified Otunnu, in which
the penalty in the intention of the the Constitution,” he challenged Sec-
same section of the (Police) Act. Com- Justice Kenneth tion 27A (3) and (4)
pelling a person Kakuru ruled in
Police Act for those
who fail to honour who is not yet sus- the lead judgement.
of the Police Act
which gave Police Museveni’s regional tours
summons produce
documents. “The
pected to have com-
mitted any criminal
Kakuru added
that the aforemen-
wide-ranging pow-
ers to summon, seen as 2021 strategy
impugned provi- offence to appear tioned section of compel appearance
sion imposes a pen- before a police the Police Act is and production of President Museveni is already in cam-
alty upon a person officer at a police not acceptable or evidence by wit- paign mode making country tours as his
summoned for fail- station, to answer demonstrably justi- nesses. He said the opponents cannot be accorded the luxury
ure to comply. Such questions and pro- fiable in a free and spirit of the sections of speaking on radio or staging concerts.
a person could be duce documents democratic society. were politically Last week, Museveni was in the Tooro
prosecuted. Clearly, would be incon- The other judges on motivated to harass sub region where he tipped residents on
this would defeat sistent with and the panel were Jus- opposition politi- agriculture, land use and addressed NRM
the purpose and in contravention tice Owiny-Dollo, cians. leaders. At a rally in Fort Portal, Musev-
of Article 23(1) of Justice Egonda- eni addressed sub country and village
leaders drawn from Kabarole, Kyenjojo,
Bunyangabu, and Kyegegwa districts. He
Hilton opens first hotel in Uganda advised them against land fragmenta-
tion which he said is causing poverty in
Hilton Garden Inn Kam- Hilton Garden Inn Hotel General Manager Hilton
many areas of Uganda. Museveni said
pala has opened as the first promises busy modern Garden Inn Kampala said:
he is embarking on countrywide tours
branch of the Hilton hotels travelers quality accommo- “I am delighted to be open-
to enlighten citizens on the fight against
in Uganda. The 96 guest dation at affordable prices ing the first hotel under the
poverty but his critics say he has started
room hotel is located on with friendly service. Hil- Hilton portfolio in Ugan-
campaigning two years ahead of the elec-
Kira Road directly opposite ton Garden Inn is one of da” Tiwari remarked that
the British High Commis- the world’s most successful Hilton Garden Inn Kampa- tions, something that he does not grant
sion and next to a number midscale hospitality brands la will deliver a fresh and those with intentions to challenge him. He
of attractions such as the with more than 800 prop- affordable experience for also visited Koboko and Omoro where he
Uganda Museum, Acacia erties across 40 countries both business and leisure launched phase four of the national back-
Mall, Uganda Golf Club. worldwide. Sanjeev Tiwari, visitors to the city. bone infrastructure connectivity project
for West Nile and Karamoja sub-regions.

Five new oil blocks Senior State attorney speaks out on sexual harassment
up for licensing possible way. She appealed to the Solicitor
General to have a sexual harassment com-
Oil companies can now bid for the mittee set up to address the issue to no avail.
second licensing round for petroleum She also met the Attorney General and his
exploration after the Ministry of deputy but nothing yielded. “My appeal to
Energy announced five new blocks. you as the leader of government business,
The first block called Avivi covers as a father and grandfather is that you inter-
the districts of Obongi, Adjumani, vene and have sanity prevail,”Mwesigye
Amuru and part of Arua and with wrote. She added that she first faced sexual
an area of 1026sq.km. Then there abuse while at Makerere University and she
is Omuka covering Nebbi, Nwoya says she it is “further disheartening” that the
and Buliisa, and third is Karusuban Ministry of Justice which has the mandate
covering the districts of Buliisa, to ensure rule of law has taken a stance of
Hoima and Masindi. Block 4 is Samantha Mwesigye, a Senior State Attor- silence on a matter of sexual harassment. “I
Turaco covering Ntoroko and Block 5 ney has spoken out on sexual harassment have done everything to follow protocol but
Ngaji covers the districts of Kanungu, she has persistently faced from her former the system seems orchestrated to frustrate
Rukungiri and Rubirizi. The State boss, Christopher Gashirabake, the Deputy me,” Mwesigye spoke about her frustration
Minister for Energy Peter Lokeris in Solicitor General. Mwesigye wrote a letter in seeking redress. She also said the minis-
a statement to Parliament said about of anguish to the Prime Minister Ruhakana try had refused to recommend a visa for a
Shs3.52 billion will be utilised during Rugunda on March 3 after failing to get study course in the U.S.
FY 2018i19 and FY 2019/2010. authorities to address the matter in any

4 May. 17 - 23 2019
Week

Museveni a victim of
capitalism- Prof. Tandon
Prof Yash Tandon, famously
known as one of the ‘Gang of
Four’; the others being Prof
Edward Rugumayo, the late
Prof Omwony Ojok and Prof
Dani Wadada Nabudere, aca-
demics who played a crucial
(R-L)Prime Minister Ruhakana Rugunda, IPOD Council chair Gerald Silanda, NRM secretary General Justin Lumumba, FDC role in rallying forces against
deputy secretary general Harold Kaija and IPOD executive secretary Frank Rusa at a meeting at the Prime Minister’s office. former president Idi Amin in
The IPOD proposed new regulations for the implementation of the Public Order Management Act.  SILVER OFWONO
1979, said President Museveni
is a victim of global imperialism
and capitalism which has held
World Bank donates $545m to Cyclone victims Uganda and other poor nations
hostage. While launching his
The World Bank that have recently been Kenneth,” said World Bank book, Common People’s Uganda,
announced that it has made available from exist- Group President David Prof Tandon said that the Inter-
mobilised over half a ing projects. Together, total Malpass, following a tour national Monetary Fund, the
billion dollars in new World Bank support to the of Beira’s affected areas. World Bank and the World
resources to help people in three countries’ recovery Mozambique, the country Trade Organisation are symbols
Mozambique, Malawi, and reaches around $700 mil- hardest hit by the cyclone, of the capitalistic order that have
Zimbabwe affected by the lion. The World Bank is also will receive $350 million captured Uganda and left lead-
assessed impact of Cyclone working with Mozambique in CRW financing to re- ers like Museven in a tight spot.
Idai.  The World Bank is and Comoros to assess establish the water supply, He described them as a common
activating the International and respond to the new- rebuild damaged public enemy to Uganda. Tandon said
Development Association est development—Cyclone infrastructure and crops, it compels people like Museveni
(IDA) Crisis Response Win- Kenneth. “Cyclone Idai and support disease preven- to fight for power at all costs by
dow (CRW) to provide up caused catastrophic dam- tion, food security, social leveraging various resources at
to $545 million in total for age earlier this year that protection, and early warn- their disposal. Tandon, 80, urged
the three affected countries. affected millions of people, ing systems in the impacted President Museveni to step
This is in addition to nearly and this tragedy has been communities. down and hand over power to a
$150 million in resources compounded by Cyclone younger generation.

AfricellUG @AfricellUG

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Regulated by Uganda Communications Commission

for more bundles

May. 17 - 23 2019 5
Week
Corruption eats into
ANC vote margins
The African National Congress
(ANC) won South Africa’s parlia-
mentary elections but with a reduced
majority with President Cyril Rama-
phosa vowing to tackle corruption
in his victory speech. Voters were
disgruntled with unending corrup-
tion and an embattled economy which
saw ANC score 58%- its lowest vote
margin ever. Democratic Alliance
(DA) came second on 21% while the
radical Economic Freedom Fighters
(EFF) led by Julius Malema came third
with 11%. Ramaphosa called for unity
in the Rainbow nation. “Let us now
UBL plants 3000 trees work together, black and white, men
and women, young and old, to build
As a move to restore lost tree cover, Uganda two entities continuously plant trees in differ-
a South Africa that truly belongs to
Breweries Limited (UBL) and Rotary Uganda ent forest reserves. In phase one of the project,
all who live in it as proclaimed by our
planted over 3000 indigenous trees on 40 hect- 40 hectares were planted at Gangu forest
forebears,” he told supporters in Preto-
ares of land in Gangu Central Forest reserve, reserve last year. Speaking during the tree
ria. He called for a South Africa “which
Butambala district. This is the second phase of planting activity, UBL Corporate Relations
is united, which is non-racial, which
the tree planting program that was launched Manager Rhona Arinaitwe said, “UBL is very
in 2018. UBL through its ‘Water of Life’ initia- passionate about environmental conservation. is non-sexist, democratic and prosper-
tive signed a partnership with Rotary Uganda The water we use for our production processes ous”. It was the first time the ANC’s
to jointly restore 200 hectares of forest reserves comes from Lake Victoria and as such, we need share of the vote fell below the 60%
within Lake Victoria water catchment areas. to protect the Lake’s catchment areas as a way mark and it will now have 19 fewer
The project worth Shs245million will see the of protecting the lake.” seats in the 400-member parliament.

6 May. 17 - 23 2019
Humour Did you know?
Wine prevents sore
throats and dental plaque

A new study has found that drinking


wine could actually have some health
Forgery and bribery have hit the National ID projects as foreigners benefits – and that’s both red and white.
are paying LCs and NIRA officials to hire parents to secure IDs Wine is actually a disinfectant for germs,
including those that cause dental plaque
and sore throats.
An old study in 1988 found that wine
had antibacterial properties, and the latest
research has concluded that the acidity and
alcohol concentration in wine isn’t what’s
responsible for this, as was previously
believed. Instead, it is thought to be due to
a number of organic compounds found in
both red and white wines.
The new study by scientists at The
University of Pavia in Italy was published
in the journal of agricultural and food
chemistry. It found that the compounds
found in wine kill 99.9% of dental bacteria
and germs that cause sore throats. So
if you’re coming down with a cold, a
medicinal tipple could actually help ward
it off.
“Several studies suggest that moderate
wine consumption has beneficial effects on
Former NTV news anchor Joel Ssenyonyi has been appointed People Power spokesperson. human health,” wrote the study authors. “
The antioxidant and antiradical
properties, particularly of red wine,
attributed mainly to a high polyphenol
content, appear to protect against the risk of
coronary heart disease and cancer.
“Our findings seem to indicate that
wine can act as an effective antimicrobial
agent against the tested pathogenic oral
streptococci and might be active in caries
and upper respiratory tract pathologies
prevention.
“In conclusion, both red and white wines
were proved to exert in vitro antibacterial
activity against several oral streptococci.”
Streptococci (“strep”) are a group
of bacteria that cause diseases called
Streptococcal infections. There are many
different types of Streptococci bacteria, and
infections vary in severity from mild throat
infections to life-threatening infections of
the blood or organs. Most streptococcal
Dr Kizza Besigye and Bobi Wine have implored their supporters to end hostilities among themselves
infections can be treated with antibiotics.

May. 17 - 23 2019 7
News analysis Health Business
What deal between the old, Shutting down social Rice and Ugandan banks post
new opposition leadership? media fuels violence obesity record profits in 2018

Issue No. 571 May. 10 - 16 2019


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

Museveni’s order
to police is risky
With Ochola, Sabiiti in charge,

Inbox
it also means more trouble

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Letters are
welcome ! Poverty is road to serfdom
The Editor welcomes short and Refer to” “The road to too high. Try to run a competition. I’m running a
concise letters from our esteemed serfdom” (The Independent business and expenses and small company supplying
readers on topical issues. Please May 03). Thank you challenges will collapse it. medical items but it’s a
send them to:
The Editor, The Independent Mwenda for wonderful There is no support from straggle. Capital is less
Publications Ltd, analysis. It is true the our government for micro to extent that you cannot
P.O Box 3304, mindset determines many businesses. Even those compete with people with
Plot 82/84 Kanjokya St, things, but where is its who have broken through money.
Kamwokya. origin? The level of poverty do not support upcoming
Kampala,Uganda.
in our communities is ones just because they fear Bernard
Email: editor@independent.co.ug
Querying Mwenda’s
Museveni to blame 98%
Govt to blame success story
Refer to” “The road to serfdom” (The
for serfdom Refer to” “The road to serfdom”
Independent May 03).Mwenda you say (The Independent May 03). Much as
President Yoweri Museveni is partly Refer to” “The road to serfdom” (The Mwenda’s Henry Mayanja’s example
could be true, it however, does not
to blame but I think Museveni is to Independent May 03). Andrew Mwenda
depict the true nature of doing busi-
blame 98%y. H Joon Chang (who I read can make someone believe that they are
ness in Uganda. There is a bit that
after your very good recommendation fools. Some people like him have sold their
Mwenda does not reveal. Ugandans
in one of your articles) writes about intellectualism to bread and fear.
are one of the most entrepreneurial
how countries can only develop with I grew up in Masaka selling
beings in the world. However, a sur-
protectionist policies. But Joon Chang grasshoppers and so far it’s the food vey carried out in 2004, by Makerere
argues that lately, western countries industry I understand best. We are being university Business school revealed
have established intricate education charged 350,000 per bulb per season. Is that 50% of the businesses fail. The
and economic systems to keep third this our mindset problem? survey showed that 20% of small
world countries poor by discourag- Sembuule who owned the first steel businesses failed in their first year of
ing protectionist policies. Joon Chang rolling company, employing thousands of opening and 30% failed in the second
writes about the Tudor monarchy’s people only needed Shs4 billion to remain year. The survey also stated that
protectionist policy started by Henry afloat. They instead drowned him and another 50% failed after five years
VII and adopted by his successor Eliza- compensated Basajjabalaba for a market he of operation. Mwenda’s picture of
beth. Joon highlights how these policies never ran for a single day. Henry’s business is another picture
failed for decades but where supported I have just learned that the salaries of of roses without the thorns. Mwenda
until they yielded fruit after 100 years! Ugandans working in the Arab world were claims that Henry started his busi-
But we are stuck with a president reduced by a half as a result of a `directive ness with £15,000 which purchased
who at best says Ugandans are useless from above’. Is this mindset as well? two trucks (heads). He claims that
and can only manage salons and bars. As an entrepreneur, your government Henry now boosts of 70 trucks and
And yet Museveni is an exceptional taxes you heavily irrespective of whether his business empire is worth £5 mil-
leader in other aspects. But when it you are making profit or not? Why is it lion. If Henry owns 70 trucks and if
comes to the indigenisation of the econ- that Ugandan billionaires are not given tax he used £15,000 to purchase 2trucks
omy and the fight for ultimate freedom holidays like investors who borrow money then Henry’s 70 truck business is
he has failed miserably. A president from our government, only to employ their only worth £525,000. Uganda’s rate
should encourage and incentivise citi- fellow countrymen such as Chinese on our of return on investment is about 5%.
zens to reach their full potential and tax payers money? If Henry invested £15,000 in 2013,
not abuse and inadvertently promote People are doing their best and how do we arrive to£5m in a span
eugenic based theories. unfortunately the arrogant class that has of just over 5 years? Uganda’s most
But no, he gives Mukwano grants mastered the art of gun powder siphon “investible” business is not “trans-
and gives “investors” loans to develop everything Ugandans work for then port” but “gas and oil.” What is the
hospitals as opposed to investing in hire people like Mwenda to spread their true story Mwenda? We all want/
indigenous Ugandans! language! crave to be part of a success story.
This one has something missing.
D. Mutalya Harold
Rajab Kakyama

8 May. 17 - 23 2019
The Last Word Opinion

A preliminary peep at 2021


By Andrew M. Mwenda
The things opposition parties should ignore and those
they need to focus on to have a chance in 2021

T
he opinion poll by Research Yet I also think rigging is the least of the existence of risks and threats of going
World International (RWI) found problems facing the opposition in Uganda; against the NRM does not automatically
Kyadondo East Member of the real challenge is voter turnout; a factor stop influential individuals from standing
Parliament (MP) Robert Kyagulanyi that needs high levels of organisation to on the opposition ticket.
aka Bobi Wine (at 22%) far ahead of overcome. Friends in FDC told me that in the 2016
long-standing opposition leader, Dr. But let us deal with vote rigging first: to presidential elections, they had polling
Kizza Besigye (at 13%). President Yoweri monitor polling effectively, the opposition agents in barely 7,000 of the 28,010 polling
Museveni led the pack with 32%, but far has to ensure it has polling agents at every stations i.e. 25%. The opposition can cry foul
below the 50% plus one he needs to win polling station. about NRM rigging. However, if it cannot
a first round. While this may be great for NRM can thwart this by either planting get polling agents to watch its votes, why
Bobi Wine, it has potential to be a risk to the operatives as opposition polling agents does it expect to get voters in such areas?
opposition chances of beating Museveni in or buyoff opposition agents to become Indeed, the fact that Besigye got many votes
2021. I will return to this subject towards the complicit in the rigging on polling day. in places where he did not have polling
end of this article. To neutralize this threat, the opposition agents only shows that the electoral process
I am frustrated that opposition activists needs to have at least 20 polling agents at in Uganda is largely free and fair.
consistently spend most of their time every polling station. This requires high In the RWI poll, 22% of voters said they
complaining about how unfair the electoral level of organisational capacity which the are undecided. Only 35% showed support
process is. They have devoted most if their opposition needs to build. for the two leading opposition candidates.
efforts in pushing for electoral reforms and The best way to build an effective This means that between Museveni’s 32%
changing of the composition of the Electoral opposition organisation is to ensure that on the one hand and Boni Wine’s and
Commission (EC). Indeed, in the opinion the opposition work together to field Besigye’s 35% on the other is a 33% which
poll, 88% of opposition supporters said a candidate in every single geographic needs to be courted. Yet opposition leaders
they do not trust the EC, while 45% of all parliamentary constituency. This is vital and activists in Uganda think they are so
respondents agreed with them, 43% trust because now the parliamentary candidate awesome, everyone is on their side and,
the EC. would have a personal interest in securing therefore, they do not need to win them
I think focusing on the EC is misguided his/her own votes. Without parliamentary over. This is perhaps the most tragic aspect
and hides the real challenge of the candidates, and indeed strong ones, the of our politics.
opposition. opposition individually and collectively For Museveni, the division of support
This article is, therefore, a dialogue with cannot marshal enough organisational between Bobi Wine and Besigye is an
the opposition leaders and activists on how strength to place a large number of polling opportunity to play the two sides against
they can do better. It is advice they hate but agents on every polling station. each other.
which they need. For instance, during the 2016 presidential Bobi Wine wants Besigye’s crown.
It makes little sense to expend your elections, the leading opposition party, Besigye and his supporters are unlikely to
energies on a struggle – like disbanding the Forum for Democratic Change (FDC) surrender it without a fight. First they think
the EC and changing the electoral laws had candidates in only 201 out of 290 their man has made enormous sacrifices to
– you have little chance of winning. The geographical constituencies, 61 out of surrender his crown of an upstart. Second
NRM has an overwhelming majority in 112 district woman MP slots, and 43 out they do not trust Bobi Wine to remain true
parliament to block any serious electoral of 112 district LCV chairpersons. It got to the anti-Museveni cause, suspecting
reform legislation. Museveni is not going to worse at the lower LC elections. Most of that his business interests and his personal
change the EC if that creates risks for him to these candidates were weak, and therefore flexibility can lead him to be bought off or to
lose power. It makes little sense to fight over unable to rally enough confidence in the compromise. And finally, Besigye’s people
what you have no control over. population to generate effective polling think Bobi Wine lacks the competence and
The opposition should devote most of agents. Why? Many high profile individuals pedigree to become president.
their effort on things that are under their are afraid to go against NRM because they This is likely to allow Museveni to exploit
direct control. They need to recognise that it can lose their careers and/or businesses. such differences, stimulate and simulate a
is difficult, if not impossible, for the NRM to However, the fact that an argument is fight between the two sides as he sits back
steal elections at the EC tallying center. rooted in one set of facts regarding a specific and watches the sparks fly. As the two sides
Most (if not all) of the rigging happens at case does not mean all opportunities are fight, many Ugandans will lose hope in
the polling station and is largely through closed. For instance, in many constituencies the opposition as a viable alternative. This
stuffing ballot boxes. This happens where across the country, including in NRM’s may lead to a nose dive in election turnout
the opposition has little or no presence bastion in Western Uganda, opposition – exactly what Museveni needs to win even
during the balloting and counting of supporters with a strong local profile in the when most of the country is tired of him.
votes, itself a sign of opposition numerical church, mosque, business, and traditional
weakness. institutions win elections. Therefore, the amwenda@independent.co.ug

May. 17 - 23 2019 9
cover story

Bobi Wine
and Besigye
Who gains, loses
in partnership?

10 May. 17 - 23 2019
cover story

D
By Haggai Matsiko joint activities. support ahead of the 2021 elections.
When it became clear that nothing He has been holding events across
id the May 6 agreement was clear yet, some commentators the country in recent months. His name
between Bobi Wine said Bobi Wine, who appears to be has been in the headlines as police has
and Kizza Besigye surging ahead of all opposition leaders, teargased his meeting, dragged him
to “partner” against had squandered his popularity by out of radio stations, and occasionally
President Yoweri being associated with Besigye whose detained him. These events are aimed at
Museveni weaken the popularity is said to be sinking. maintaining his position as the de facto
People Power leader? Did it strengthen But did the May 6 agreement weaken leader of opposition.
a sinking Besigye? Bobi Wine? Was Besigye sinking and Also, perhaps as a strategy, Besigye
Besigye, representing the People’s did Bobi Wine rescue him? Was that and FDC party loyalists have ignored or
Government, and Robert S. Kyagulanyi, a smart move? And can Besigye now dismissed the poll showing Bobi Wine’s
the Kyadondo East MP also known cause trouble for Bobi Wine ahead of the popularity.
as Bobi Wine, representing the People 2021 presidential election? FDC stalwart Salamu Musumba says
Power Movement and their teams met polls gauge the opinion at the time they
on May 06. Besigye excited are done and do not determine how
The cover for the meeting that took In any case, Besigye appears to have people will vote in future.
place at Bobi Wine’s home in Magere, embraced the renewed links to Bobi In any case, FDC spokesperson and
Wakiso District, was that they were Wine. opposition Chief Whip Semujju Nganda
there to welcome him from jail. Bobi At the most recent activity for his says, polls conducted in the past have
Wine had been jailed on April 29 and mother party; Forum for Democratic not been accurate about Besigye. They
released on bail on May 02. Change (FDC) leaders and supporters have showed Besigye to be unpopular
It was an unexpected turn because at the party headquarters in yet he has gone on to score highly in
before it, Besigye and Bobi Wine had Najjanankumbi on May 12, Besigye elections.
been lobbing sharp criticism at each scoffed that those who thought he had In the run-up to the last election in
other and their supporters appeared failed to overthrow President Museveni. 2016, for example, the emergency of
divided. Some were excited to see them He said that they had reached an former Prime Minister Amama Mbabazi
working together but others were
not.
2001 2006 2011 2016
In a joint statement after the
meeting, Besigye and Bobi Wine Candidates Votes % Votes % Votes % votes %
had said: “we agreed that despite Yoweri 5,123,360 69.33% 4,109,449 59.26% 5,428,369 68.38% 5,971,872 60.62%
belonging to different formations/ Museveni
fronts, we must all work together Kizza 2,055,795 27.82% 2,592,954 37.39% 2,064,963 26.01% 3,508,687 35.61%
as partners”. Besigye
What does being `partners’
mean? This was the main issue
when the joint statement signed by understanding with Bobi Wine that in as a contender, had led many senior
Besigye for the People’s Government the war to overthrow Museveni, they opposition politicians to write off
and Robert S. Kyagulanyi, the faced the same challenges and that if Besigye.
Kyadondo East MP also known as Bobi they were to overcome them, they have They claimed Mbabazi had a better
was released to the press on May 08. to cooperate in that fight. Party leaders chance than Besigye of defeating
But Mukono Municipality MP Betty and supporters, he added, should not sit Museveni. They insisted on Mbabazi
Nambooze who spoke for Besigye and whenever Bobi Wine is mistreated. as a joint opposition candidate. But
erstwhile NTV news anchor turned The event comes after recent poll by Besigye rejected him and run as the
politician Joel Senyonyi who spoke for Research World International (RWI) put FDC candidate. By the time the election
Bobi Wine either stuck to the vague Besigye behind Bobi Wine in popularity. ended, Besigye had posted one of his
statement or issued clarification after The poll showed that if elections were best performances ever.
clarification. held today, Bobi Wine would get 22% of Back in 2001, Besigye got 2,055,795
The statement said: “We acknowledge the vote and Besigye 13%. It is the first votes representing 27.82% against
that the forces of change are stronger time any opposition leader is ahead of Museveni’s 5,123,360 or 69.33%.
when we work together and speak Besigye in a poll. In 2006, he got 2,592,954 or 37.39%
with the same voice as we confront the But Bobi Wine remains a far second against Museveni’s 4,109,449 or 59.26%.
common enemy”. to President Yoweri Museveni who This meant that while Museveni lost
Does that mean that Besigye and Bobi got 32% in the popularity vote. That is over a million votes, Besigye gained
Wine camps will field one presidential why many think only a joint opposition over half a million.
candidate in 2021, journalists asked. candidate can challenge Museveni. But in 2011, Besigye secured only
“At this moment, it is difficult to talk Besigye’s biggest challenge is that 2,064,963 or 26.01% against Museveni’s
about candidates,” Nambooze said. after four attempts, many see his efforts 5,428,369or 68.38%.
She added: “We are in discussion. as an exercise in futility. The excitement This was easily Besigye’s worst
What is best for Uganda is that they see appears to rotate around Bobi Wine. performance both in percentage terms
us as one team at the polls”. But can Besigye, who has rejected such and number of votes.
Meanwhile Senyonyi said: “We hope moves in all previous elections, allow to In 2016 Besigye was, as is happening
we can pull all entities together and Bobi Wine to lead the opposition? now, told that he has no chance having
then we discuss”. These events are also happening been given three chances and failed
Both said each group will continue when Besigye, who is a former FDC to dislodge Museveni and Maj. Gen.
carrying out its own, separate activities flag-bearer, has intensified activities in Mugisha Muntu appeared set to be the
but added that there would be some what appears an effort to shore up his FDC presidential candidate.

May. 17 - 23 2019 11
cover story

Besigye changed strategy. He bearer. He decided to run on his own. Wine is seen as the biggest political
repeatedly said he would not participate At the time, Busiro North MP and threat to Museveni ahead of the 2021
in elections if the electoral process was DP stalwart Merdard Segona likened elections.
not reformed. He was even abroad Besigye to tiny and cheap silver fish
during the party nomination period. (mukene) in terms of political clout, Behind Bobi Wine popularity
However, at the last minute, in with Mbabazi as the bigger, richer Nile Part of the reason is that Bobi
the last week of June 2015, he wrote Perch. Wine’s music is seen as his most lethal
an email to the FDC’s Electoral Then, while addressing the press on mobilisation tool. His November 2018
Commission indicating that he was September 29, 2015, party spokesperson Kyarenga concert at the One Love Beach
picking nomination forms – by proxy Kenneth Kakande said that with in Busabala, which he owns, is to-date
through Godfrey Ekanya and Ingrid Besigye, the the opposition has been the biggest concert by any Ugandan
Turinawe. having a good player but never scored artist.
Besigye told his supporters that any goal and “we think Mbabazi knows Since then, the artist claims that
Museveni was at his weakest and the tricks as to how we can secure that the state has blocked 124 of his music
would be defeated this time. A few victory”. concerts in what is seen as an effort
critics reminded Besigye that he had Some FDC MPs like Beatrice Anywar to cripple him both financially and
pronounced Museveni to be at his openly criticised Besigye and the party politically. But it is not clear how the
weakest the previous times but failed to responded with threats to crack the state will deal with Bobi Wine’s music
dislodge him. whip forcing other members like former when the campaigns proper start. His
Still, he ran against Muntu and Leader of Opposition Morris Ogenga rallies might be music concerts.
defeated him to become, once again, the Latigo to come out and state publicly Previously Bobi Wine was just a pop
FDC flag-bearer. that they do not support Mbabazi. star and even his music was more social
But more hurdles lay ahead for Despite all this, Besigye ran one of the issues-oriented than political.
Besigye. The opposition was planning best campaigns in 2016 and posted one Then in the build up to the 2016
on a joint presidential candidate under of his best performances so far. elections, he made the switch; focusing
the Democratic Alliance (TDA). He got 3,508,687 or 35.61% of the mainly on political music, and
The FDC under Muntu, Democratic election. Amama Mbabazi who many targeting President Yoweri Museveni’s
Party (DP), Uganda Federal Alliance had marketed as the better shot against government directly. In just two years,
(UFA), UPC, the Peoples Progressive Museveni only managed 136,519 or he has been christened Uganda’s king of
Party (PPP), Justice Forum, 1.39%. But Museveni still won; with protest music in Uganda.
Conservative Party (CP) and Pressure 5,971,872 or 60.62%. Using protest music, Bobi Wine
for National Unity leaders had all Besigye felt strengthened. He declared challenged the ruling party shortly
signed a protocol as members of TDA. that he had in fact won the election, was before and after the elections. His
And majority seemed to favour clandestinely sworn-in and formed the music set the stage for him to win the
former Prime Minister Amama Mbabazi `People’s Government’ that Bobi has Kyadondo East election in 2017 but his
as the joint opposition candidate. ended up agreeing to “partner” with. supremacy was seen as he defeated
Besigye initially appeared to go However, ever since Bobi Wine candidates fronted by Besigye and FDC
along with the TDA process but later joined elective politics in 2016, the and Museveni and the ruling NRM.
abandoned it when it became clear view of Besigye as the lead opposition Immediately he was sworn in at
that he would not be picked as the flag contender since 2001 has changed. Bobi parliament, he led the campaign against

12 May. 17 - 23 2019
cover story

the ruling party’s move to eliminate the The Buganda, Catholic factor None of these could challenge
presidential age limit. He became the Apart from the music, Bobi belongs Museveni in an election.
centre of both local and international to three major voting blocs—he is All presidential elections have
attention as a desperate Museveni catholic, which is the biggest religious featured a Muganda, although most
deployed soldiers to invade parliament group in Uganda, he is also a Muganda have been also-run without any chance
to force the vote. and therefore belongs to the biggest of winning. Only Paul Kawanga
Then the Arua Municipality tribe, and at 38, he more than anyone Ssemogerere was a credible challenger,
by-election happened. The seat had else amongst the presidential hopefuls, first to Milton Obote of UPC in 1980 and
been held by maverick NRM stalwart appeals to the youth who ahead of to Museveni in 1996.
Ibrahim Abiriga and Museveni was the 2021 polls could make up over 70 Bobi Wine is now seen as Buganda’s
determined for NRM to retain it. percent of the voters. best shot at the presidency, he runs in
He campaigned there vigorously. Observers say tribe, religion, and the 2021. As he plans for the 2021 elections,
Besigye and the FDC also fielded a youth card might play a bigger role in Besigye must bear all this in mind. It is
candidate. But Wadri, a late entrant who the 2021 elections. Already, videos have the first time he is running against or
Bobi Wine campaigned for won. started emerging showing priests either alongside an opposition candidate who
Bobi Wine’s credentials as the singing along to Bobi Wine’s song or is seen to be more popular than him.
opposition leader were cemented using the pulpit to call on the state to Bobi Wine is also different from
because he paid the highest price; his stop blocking his concerts. President Museveni and Besigye in
driver was killed in what was seen as an In one video, a priest is seen urging many other ways. They are in almost
assassination attempt on him. He was followers to fight for the truth just like the same age bracket (Besigye 63 years
later badly tortured and locked up on Bobi Wine is doing even in if it means and Museveni 75 years), they fought
trumped up gun possession charges. being killed. The youthful priest says together in the 1981-86 war together,
Bobi Wine was not the only this is the turn for youth. are from the same religion—protestants,
opposition politician who was arrested The Catholic and Buganda leadership and come from the same region—
and beaten. But both international have in previous elections either spoken western Uganda.
and local media focused on him. This in favour of the opposition; especially In contests where these things have
exerted pressure on the state to release Besigye or used the opposition as a tended to play a role, Bobi Wine is a
him and allow him to get medical bargaining chip to win concessions from clearly differentiated product.
treatment in the U.S. for him to recover Museveni. Besigye has always benefited from
from the injuries he suffered. In return, President Museveni has the sympathy vote owing to the brutal
While in the U.S. Bobi with the help of always tried to create the impression treatment from security forces. With
U.S. based lawyer Robert Armsterdam that he shares power with the powerful Bobi Wine facing the same treatment,
held a press conference that won him Baganda constituency. Al Hajji Moses the sympathy vote could at the very
unprecedented air play on most major Kigongo has been ruling party vice least be split between them. For now,
international cable networks. chairman since it came to power in 1986 whether Bobi Wine working with
Back home, Bobi Wine’s touch was and all vice presidents except one have Besigye will appeal or put off voters is
credited for other opposition victories. been Baganda; Samson Kiseka (1991- the question.
Many started seeing him as a kingmaker 94), Gilbert Bukenya (2003-2011), and
hardly a year after he joined elective Edward Ssekandi (2011 to present).
politics. Sekandi and Bukenya are also Catholics.

May. 17 - 23 2019 13
news analysis

Uganda Airlines will get back into the competitive business of flying passengers around the world later this year.

Museveni reversing 30
years of privatization
Will government enterprises that failed under the 1990s
inefficiency fare any better with current corruption?
By Ronald Musoke businesses sold were Uganda Bus Museveni who was on hand to receive

W
Company, Uganda Commercial Bank, them at the old airport in Entebbe.
hen Uganda’s newly Uganda Dairy Corporation, Uganda Even current IMF Country
acquired two Bombardier Grain Milling Company, Uganda Representative Clara Mira agrees with
CRJ900 aircraft arrived in Tobacco Corporation, the Coffee the return of government into doing
the country on April 23, Marketing Board, Lint Marketing business directly.
there was excitement. Board, several sugar factories, Uganda “Things have changed very
‘Historic occasion,’ proclaimed the Hotels, Nytil Jinja Textiles, Uganda significantly since the late 1980s,” she
newspapers. Amidst the excitement, Conference Centre, Nile Mansions, told The Independent on May 8, “there
however, was some apprehension. and Apollo Hotel. Others like Uganda are very many different ways of doing
The planes are part of a quartet that Electricity Board, Uganda Railways things; the challenges that we were
the government acquired recently in Corporation, and Uganda Posts and seeing back then are not necessarily the
a bid to revive the country’s national Telecommunication Corporation same now.”
carrier, Uganda Airlines a.k.a The were chomped into tinier entities and
Flying Crane, which was dissolved in privatized in bits. No business plans
the 1990s frenzy to get government out At the time, the IMF/World Bank In reality, many of the new
of business. It was all part of policies and the government argued that public enterprises the government is venturing
imposed by the World Bank and the parastatals needed to be privatized into do not have viable business plans.
International Monetary Fund (IMF). or disbanded because they were Instead of bringing money into the
So the old Uganda Airlines which had inefficient and an unnecessary burden government’s coffers, they are being set
been flying the black-yellow-red flag on taxpayers as they needed constant up to take taxpayers money.
since 1976 was gobbled up in 2001 by injection of new money. The long list includes projects being
President Museveni’s government. But when Museveni received the promoted as nationalist enterprises
Up to 140 parastatals were put up new planes, he assured Ugandans that designed to restore national pride
for either privatization or dissolution, the new national flag carrier will be a and cut costs spent on catering for the
according to Jim Mugunga, the successful venture this time round. international travel and medical needs
spokesman of the Ministry of Finance “I was among the undertakers of of the country’s political elite.
which set up a Privatization Unit. By the funeral of the old airlines. Here I Some of the projects the government
2018 only 20 enterprises remained. am among the midwifery delivering is pushing are shrouded in allegations
Among the other prominent the new baby,” said President Yoweri of corruption and selfish interests.

14 May. 17 - 23 2019
news analysis
The government’s decision to issue Talking to government officials, On the other hand, Syda Bbumba; the
promissory notes worth US$379.7 however, it is not clear if there is a clear former minister of Finance and current
million (over Shs 1.4 trillion) to facilitate strategy on the government’s place in chairperson of the Parliamentary
an elusive Italian investor to construct business. Instead, every official appears Committee on the National Economy,
the International Specialized Hospital at to have their own version of what is does not see any deep direct
Lubowa has been criticized. going on. government engagement in business.
The new Uganda Airlines has also “These are limited strategic
already run into trouble with Parliament No clear government policy interventions,” she told The Independent
oversight for attempting to operate The Uganda Development when asked about Uganda Airlines and
without a substantive board of directors Corporation (UDC) is behind most of others.
and self-ground handling facilities. these projects. Its Executive Director, But Shinyekwa of EPRC and
Such incidents indicate that where the Patrick Birungi, calls the process Ramathan Ggoobi of Makerere
old parastatals failed mainly because a “de-risking.” In his view, all the University see a more deliberate move
of inefficiency, the new ones being government is trying to do is ‘de-risk’ by the government.
created could fail because of runaway certain sectors so that it can later Shinyekwa told The Independent on
corruption. Most commentators are relinquish them to the private sector. May 08 that it appears the government
resigned to not seeing any profits from “It is the responsibility of the “after a lot of soul searching,” has
the new parastatals. government to go into sectors where realized that it made some “technical
“Parastatals like Uganda Airlines are the private sector feels it is too risky for mistakes” during the 1990s privatization
not there for profit but they are there them to invest,” he told The Independent drive that it is determined to fix.
for other reasons like national pride and on May 10. Ggoobi meanwhile says perhaps the
job creation,” says Isaac Shinyekwa, a “This is why the government went government has realized that economic
research fellow at Makerere University’s into opening the fruit factory in Soroti,” development of Uganda will after all
Economic Policy Research Centre he said, “The idea is to try to drive up require the participation of both the
(EPRC). prices for the fruit farmers in the area state and the private sector.
Shinyekwa told The Independent that who have been selling their fruits to “The NRM government is trying
when these public enterprises were Kenyan and Rwandan buyers at very to retrace its footprint to where they
created in the 1960s across Africa low prices.” started in 1986 with their 10-point
following independence, they were programme, one of which talked about
meant not only to spur economic nurturing a mixed economy.”
development; they were also supposed He added: “If the investments that
to boost employment opportunities and
distribute incomes. It is the the government is trying to go for are
very well appraised and backed up by
Ramathan Ggoobi, a senior lecturer
of economics at Makerere University responsibility robust corporate governance, the best
development strategy is one that has
Business School (MUBS) agrees with
Shinyekwa.
of the the private sector and the government
participating.”
“The government is trying to shift
away from the neo-liberal thinking
government Ggoobi told The Independent that
African countries should actually
which has led to the challenges many to go into embrace “second-generation reforms”

sectors where
African governments have been to not only facilitate business but also
grappling with; including what many participate in sectors which the private

the private
economists say is ‘jobless growth’.” sector has been shunning for a long
According to information available to time.
The Independent, the decision to reverse
the government’s privatization policy sector feels it Not everyone is convinced about
the new government move. Dr. Fred
was sealed at a cabinet meeting in 2015.
At that meeting, President Museveni is too risky for Muhumuza, a senior economics lecturer
at Makerere University says he does
reportedly informed his ministers
that no more parastatals would be
them to invest not see any justification for government
rushing back into business.
privatized. Instead, the government “What problem is the government
would invest directly into several exactly resolving? If the government
businesses. must get back into business, it must
Apart from reviving Uganda Airlines, be via calculated economic reasoning,
the government has invested heavily He said the government will go into not emotions and politics,” Muhumuza
in the power generation sector and starch production because it spends a says.
in enterprises like the Kiira Motors lot of money in importing both food and “The reasons why the private sector
Corporation, the Soroti Fruit Factory, pharmaceutical starch. has not gone into some sectors need to
the Atiak Sugar Factory, and an “Why should we continue spending a be investigated because none of these
International Specialized Hospital lot of money on this when we can produce sectors in which the government is
at Lubowa in Wakiso District. There it locally? We want that starch produced re-entering is non-profitable,” he said,
has also been talk of the revival of the here,” Birungi said. He also mentions “The re-entry of government is not the
national commercial bank which has clinker, a binder in cement, which cement solution to the constraints of doing
caused bickering between the Finance manufacturers currently import. Birungi business in the country that the private
Minister and the National Planning told The Independent that he expects the sector has been complaining about.”
Authority (NPA) and the Katwe Salt government to continue investing in agro-
Industry and the Kasese Copper Mines processing, mining, mass transport and
in Kilembe, Kasese District. telecommunications sectors.

May. 17 - 23 2019 15
news analysis

ADF attack at DR Congo border

Tracking terrorist
links of ADF rebels
ADF offshoots have been reported in Mozambique
By Stig Jarle Hansen not new. As early as 2017 a poorly-made Al Himmah Library on the body of a

I
video emerged showing a small group dead Allied Democratic Forces soldier
n April the Islamic State (ISIS), of fighters (including what seemed to in February 2018. The book is easy
took responsibility for an attack on be foreigners), declaring loyalty to the to download from the internet, so it
an army base in the troubled Beni Islamic State. The troubled province of remains unclear whether the download
region of North Kivu province, North Kivu has seen almost continuous was at the instigation of the Islamic
eastern Congo, close to the border with violence for more than two decades, State or not.
Uganda. The Islamic state credited this with violence erupting from 1993 and All of these signs indicate that
and four other attacks to the Central onward. there are some links, ideological or
African Province of the Islamic State. In 2018, Kenyan authorities arrested organisational, but the nature of
The attacks came amid signs that the two people they accused of raising these links might be complicated and
Islamic State’s offshoots outside the money and supporting various Islamic fragmented.
Levant (the area encompassing modern state organisations in Syria, Libya and
day Palestine, Israel, Lebanon, Syria, the Congo. In Congo’s case, the fingers The Allied Democratic Force
Jordan and Iraq) are growing in relative were pointed at a group called Allied The Allied Democratic Forces was
importance. Some of these offshoots Democratic Forces, based in North Kivu. a creation of Congolese and Sudanese
have been depicted, or mentioned in the The case is yet to be prosecuted, but the attempts to undermine the Yoweri
latest video of Islamic State leader Abu group was mentioned in other cases of Museveni regime in Uganda in the
Bakr al-Baghdadi. alleged links to Islamic State as well. 1990s. Created in Congo in 1995, it
Links between groups within North The last link was the discovery of a consisted of two very distinct elements
Kivu province and the Islamic state are book published by the Islamic State’s with relatively strong ideological traits,

16 May. 17 - 23 2019
news analysis
and separate past histories.
The first group that entered the
union that was to become the Allied
Democratic Force was the National
Army for The Liberation of Uganda.
This was one of many based around
the mainly Christian Bakonjo-Baamba
people of Rwenzori, and their struggle
for more autonomy and independence
from Uganda.
The second component was
the Islamic Salafi Foundation, an
organisation with roots going back to
protests against Uganda’s attempts to
control Islam.
Inside Congo, the two ideologically
different organisations were fused
together into a new organisation by the
regimes of Mobutu Sese Seko in Congo
and Omar al-Bashir in Sudan. The two ADF leader Jamil Mukulu in prison in Uganda
men envisaged it could be used as a tool
against Uganda, to check Museveni’s
influence and stir up domestic politics.
I trace the development of the group
in my book` Horn, Sahel and Rift: Fault-
lines of the African Jihad’, pointing
out that the new organisation quickly
became embedded in Congo. This
happened in two ways. The first was
through the active attempts by Mobutu
to integrate it into the local governance
and security of his regime. The second
was through Bakonjo-Baamba networks.
Mobutu also encouraged the Allied
Democratic Forces to invest in local
businesses and partner in business
ventures. Some of these links remain
active. These old business associates
tend to be seen as a part of the
organisation which has led to the
perception that the Allied Democratic
Armed forces at the Uganda- Congo border
Force has wider reach than is actually
the case.
The early golden age of the Allied became a vital component in its training Mozambique.
Democratic Forces ended when Mobutu camps. In 2018, the Ugandan security services
lost power in Congo in 1997. It was However, compared with other also accused the group of being behind
forced to relocate into the Rwenzori African jihadist outfits such as Boko killings of sheikhs in Kampala.
Mountains on the border between Haram and the al-Shabaab, the group It’s hard to determine if violence in
Uganda and Congo to avoid offensives lacked the ideological focus, religious the region is being committed by the
from Uganda and the new regime in sophistication and wide distribution. Allied Democratic Forces, or other
Congo. militias. It’s also hard to determine
Recent developments the exact borders of the organisation.
Radicalisation phase At the start of 2018 Allied Democratic And it’s hard to say if the new Islamic
In the subsequent years the Allied Forces were dealt severe blows from a State affiliate in Congo is a breakaway
Democratic Forces grew in a more Congolese government offensive. Many organisation of the Allied Democratic
Islamist direction. A number of factors local respondents predicted its end. Forces.
contributed to this. The first was that Rumours of Allied Democratic Forces But, given it’s history, it’s safe to say
its Uganda liberation component had factions “for hire” in local conflicts that the Allied Democratic Forces has
slowly weakened as soldiers and officers surfaced, with local low level sub- vital experience in surviving hardship
left the organisation. Seven top leaders commanders appearing on different and pressure, and that it’s aided by
of the old National Army for The sides in the complex conflicts in Kivu. regional rivalries and local tension.
Liberation of Uganda also surrendered Over the past two years there have Stig Jarle Hansen is Associate
under a UN disarmament programme. also been regular rumours of tension Professor of International Relations,
Secondly, the organisation seems within the organisation. Norwegian University of Life Sciences
to have increasingly used religious But in late 2018 Allied Democratic
networks to harness funds in the Congo Forces again attacked villages in Source: theconversation
and Uganda. Religious rhetoric grew Kivu, and Mozambican media even
more important and indoctrination reported about potential offshoots in

May. 17 - 23 2019 17
news analysis

Jobs fight at KCCA


months after Musisi
Return of Public Service seen as chaos after fake calm

By Ian Katusiime
Jennifer Musisi, the former Kampala Capital City Authority (KCCA) executive director
hired on a `know-who’ basis. “To hire you, she needed to trust you,” is a common
assessment of the recruitment process during her time. This is because, informed
sources say, the institution in charge of governing the capital city was largely run on
the personality of Musisi.

18 May. 17 - 23 2019
news analysis

M
usisi’s human resource plan interference had led to the resignation of At the time, the Commission asked
became apparent as soon as Musisi’s deputy Judith Tukahirwa in 2016. Musisi why KCCA did not stop
she arrived in April 2011 to The latter position has remained vacant. the process and their answer was
head the newly created KCCA. The latest high level resignation to rock unsatisfactory. Section 25 of the KCCA Act
She argued that since she was building KCCA was that of Charles Ouma who 2010 grants the Commission powers to
an institution from scratch with reform resigned as Director of Legal Affairs in appoint KCCA officers particularly those
measures, she needed to be directly in April. Sources at KCCA say, however, that below the rank of Director. But it is at this
charge of hiring so as to forego the delays he may bounce back as Deputy Executive time, after snubbing the Commission,
caused by recruitment of employees by Director in a move to align administration which has the constitutional obligation to
Public Service Commission which can take of the city authority. He had joined KCCA recruit for government bodies that KCCA
several months or even up to a year. in 2011, at the time it was recast from KCC reportedly started its own hiring mission.
She immediately set about getting rid of into KCCA; a central government agency. Sources say a team put together by
the old employees of the defunct Kampala Some see the apparent jostling for jobs as Musisi under the Human Resource
City Council (KCC). For that she set up a transition from employment by KCCA to department embarked on measures to
new organisational structures which Public Service Commission. The confusion recruit personnel for KCCA. It is under
phased out many of the jobs under the old is expected as the new order takes shape. this arrangement that it was agreed that
organisation. In some cases, Musisi merely Some are embracing the new recruitment employees be given contracts which would
wanted a fresh start. Her actions resulted style, saying it should not have been be renewed after four months depending
into multiple lawsuits, and in some of changed in the first place. They argue that on performance.
these, KCCA paid heavily. This is now being reversed. Justice
But even with her new hires, Musisi Ralph Ocan, the Head of the Public Service
ensured they worked on short contracts Commission told The Independent that

What happened
of four months which were renewed doing so is a “slow and painful process”.
persistently. “What happened at KCCA was
This, according to some of her staff,
created uncertainty in terms of career at KCCA was regrettable. The management decided to
hire people on short contracts of about
growth and hindered long term planning
among departments of KCCA. But Musisi regrettable. four months,” Ocan says, “We are trying to
correct that and bring back everything on
somehow found a way for this strategy to
work for her in eight years at the helm.
The track.”
Ocan says the Public Service
Musisi has been gone for about five
months now. She resigned in December
management Commission recruited close to 300 people
in 2012 as submitted by KCCA in their
2018 to take up the position of first ever decided to vacancies but were surprised by KCCA’s

hire people on
City Leader in Residence at Bloomberg reaction after.
Harvard City Leadership Initiative at “KCCA turned around and said there is

short contracts
the Ash Center of the Harvard Kennedy no money. Some of them went to court and
School, in Cambridge, Massachusetts, court ruled in their favour,” he says.
USA. But people who work under her
remember her tenure at KCCA with of about four Now Ocan is leading efforts to put
things back in order. “It is a slow and
mixed emotions. This, especially after
her successor, Andrew Kitaka, ditched months painful process of correcting things
because they go back over a long period of
Musisi’s recruitment style and ordered a time.”
return to recruitment through the Public Another source at the commission says
Service Commission. The result has been a meeting between KCCA and the former
a return to fights of jobs that was last seen agreed that those who were recruited back
under the old KCC. it offers a more stable work environment then in 2012 should take up the positions
A lawyer familiar with the workings for employees and for KCCA to deliver on they were asked to fill back then. How this
of KCCA told The Independent that there its mandate. will play out, is another challenge KCCA
have been several resignations in quick But some people are quitting either out has to deal with.
succession since Musisi threw in the towel. of disgruntlement or fear of being screened KCCA spokesperson Peter Kaujju
These are both in the high level positions out by the Commission, sources say. told The Independent that those who were
and the rank and file of KCCA. This Depending on who you talked to, KCCA is being recruited on short contracts were
information could not be independently either in chaos or in the pangs of rebirth. temporary staff.
verified. Musisi cited political interference “We are happier now,” says an officer at “We had a lot of work to do and we
as one of the reasons she left although KCCA who preferred anonymity because did not have a budget for them. So that
it had always been an impediment to of the sensitivity of the matter. “A career explains the short term contracts,” he says.
her work. After the 2016 elections, she is growth path had never been defined under He says the Commission is going
reported to have drafted her resignation the KCCA of Jennifer.” She says she is to ensure the recruitment process is
letter when President Museveni said relieved because she does not have to wait streamlined and everyone is hired on
KCCA highhandedness was the reason for four months to wait for another process permanent basis.
NRM badly lost elections in the city. of contract renewal. “It is going to be a much better system,”
Museveni however rejected her She told The Independent that the last he adds.
resignation and she time KCCA put out an advertisement for Kaujju was non-committal on whether
soldiered on with a job was in 2012 for a mass recruitment KCCA has now secured an increased
politics hovering but it never got round to anything. Public budgetary allocation now that its staff will
over her work. Service Commission went ahead and be hired on permanent basis.
The same recruited hundreds of staff but these never
political got a chance to step at KCCA.

May. 17 - 23 2019 19
interview

Uganda needs to create


600,000 jobs per year for
economic growth to be felt
The International Monetary Fund (IMF) on May 9 released a report on
Uganda. The Resident Representative for Uganda, Clara Mira, talked
to The Independent’s Haggai Matsiko about its important points.

What is the IMF’s assessment of the per- about 21% of the Uganda population has

A
formance of the Uganda economy? to live with less than one dollar a day.
round 2011, Uganda started a This answers the question of why don’t
period during which it grew we feel the recovery.
less, and trend growth declined. The other factor is agriculture. We
But now we are seeing a re- know agriculture employs 70% of the
covery. The year that ended in June the population. When we look at the rate of
economy grew by 6.1% and now we are growth of the agriculture sector over the
predicting the current fiscal year to con- last five years, the average growth was
tinue improving and reach about 6.3%, 2%. If the Uganda population grows at
supported by construction, manufac- 3% this means that agriculture was grow-
turing and services. ing below the capita terms. That affects
In the medium term, we do see 70% of the population. I think this also
growth going from 6% towards 7% has to do with the feeling that the growth
in the next five years or less. We are is not widespread.
projecting based on assumptions of
stable global environment, private In the report, how do you propose this
sector confidence being maintained should be addressed?
so the private sector credit contin- We are saying that Uganda needs to
ues to recover, the growth dividend create 600,000 jobs just to match popula-
from infrastructure development tion growth. We need to generate inclu-
is realised, and oil sector invest- sive and stable growth going forward and
ments are made as planned. We are this is the basis of our report. There are
assuming that oil is going to start several suggestions on how to get there,
flowing at some point in 2023 or so. including continuing the investments in
infrastructure, and supporting human
There is a view that ordinary capital development to ensure adequate
Ugandans do not feel this budget allocations for social sectors and
recovery. How do you efficiency in public services.
respond?
On the social front, What other issues do you raise in your
the indicators are report?
mixed. Indicators On the fiscal side, the first problem
like infant mortal- that we see is that Uganda doesn’t really
ity and maternal have an effective fiscal anchor. In the
mortality have last few years when we did our first
improved but Debt Sustainability Analysis in 2013, we
some others have thought that public debt was going to
not. Primary peak at around 31% of GDP. But follow-
school comple- ing our latest analysis, we are projecting
tion rates have that by 2021/22, debt will peak at 50.7%.
deteriorated. Therefore, we see that there has not been
The household a guiding process to set what debt should
survey of 2016 look like because it has been increasing in
showed that short periods of times.
national pover- In June 2018, public debt reached
ty increased 41.3%. This is the latest available number.
from 19% to According to our debt sustainability anal-
21%. This ysis, Uganda´s debt is at low risk of debt
means that distress, but there are high vulnerabilities.

20 May. 17 - 23 2019
interview
It doesn’t mean that we are fully happy and healthy. Banks are well capitalised, they partners had concerns. What has been its
comfortable because Uganda is at low risk are liquid, and they are profitable. We have impact and what lessons have we learnt?
distress because we see other indicators that some small banks that make losses and get Our concerns come from the fact that
concern us as well. capital injections. Non Performing Loans our thinking is that mobile money has
(NPLs) have declined and banks have been a game changer for Uganda. Mobile
What are these other indicators that con- become less averse to lending.We are start- money has brought financial inclusion to
cern you? ing another cycle of credit growth after a Uganda. It has expanded access to financial
One of the things that worry us is the few years of it being sluggish. What is more services to rural areas and to populations
speed at which debt has increased. When important is that Bank of Uganda maintains that otherwise wouldn’t have it. Therefore
we look at 2013, since 2013-2014, debt has strong regulation and supervision. we thought that taxing that would curtail
increased by 12% of GDP. Another issue is In 2018, we had a team from IMF that financial inclusion, and that maybe there
that interest payment rates have increased worked with Bank of Uganda to conduct could be other ways to raise taxes. While the
a lot. Now one out of every five shillings a financial sector stability review and they revision of the mobile money in the middle
in revenue has to be used for interest. This found out that Bank of Uganda supervision of the year to reduce the rate to 0.5 percent
is more than allocations for health and and regulatory structures broadly follow and only to cash withdrawals was positive,
education. This traditionally happens for international best practices. May be the key we still worry that the tax is likely to hit the
countries that are at a high or moderate risk issue that they highlighted in terms of what rural poor disproportionally hard.
of debt distress. needs to be improved is regulatory forbear-
That is why our key advice is that Ugan- ance so that some kind of enforcement Do you foresee any pressures on the econ-
da needs to establish an operational fiscal policy has to be strengthened. Another key omy ahead of the 2021 elections?
anchor; something that gives a direction of recommendation is that BoU improves In the report we note that we are already
fiscal policy, which now could be keeping stress testing and BoU is already working seeing more excitement. Uganda is not the
debt at 50% of GDP. It is not a magic num- on this. We also think they should continue only country in the world in which when
ber but a good indicator that would give a working with banks to strengthen banks’ there is an election, more resources are
buffer and provide some predictability. financial reporting and internal controls. spent. These are some of the risks that come
This is because some of these factors had to out and that the following year also might
And in terms of revenue mobilisation, do with the most recent bank failure. All in see more spending due to the elections.
what shifts do you find important to note? all, Bank of Uganda is doing a good job in
The Domestic Revenue Strategy is being ensuring financial sector stability. Looking at the impact on the economy
prepared and we think it is a very good caused by spending that went into elec-
idea. Government is taking a comprehen- Uganda has not had the Policy Support tions in 2011 and 2016, what is your advice
sive medium term approach to revenue; Instrument (PSI) programme for a few to the managers of the economy?
looking at the five-year period, with years now, why? It is important to plan well, prioritise,
improvements both in the tax policy and tax Uganda had been on our programme and make sure you mobilise all resources
administration fronts. We do see potential for a very long time. Since 2006 it was a available. It is also very important to stick
to increase the tax to GDP by at least a half non-financing programme. It was a pro- to that plan because if there are many sur-
a percent per year. That would take us to gramme where we would agree on a fiscal prises that come, that can have an impact in
around 2- 2.5% of GDP increase in the tax to framework, macroeconomic objectives and terms of increasing the cost of government
GDP ratio. work together discussing progress towards debt, private sector loans becoming more
these objectives in light of how the macro- expensive and then that can have an impact
We have focused a little bit on the fiscal economic picture was evolving. The PSI on local economy. So plan well and follow
side. What is worth noting on the mon- ended in summer 2017. The following year the plan. What is realistic, what is necessary,
etary side? we engaged and discussed the principles of what are the priorities and what cannot be
Inflation has been subdued. The latest a successor programme. But at the time, we touched? From what we are seeing, social
report for April shows that inflation is at didn’t have much clarity on the intentions sector spending is something that should
3.5%. Core inflation has increased to 4.8%. of the authorities. We decided to concentrate always be protected. You can always delay
Bank of Uganda has a target of 5% inflation on the Article IV, and for the time being we a road or a bridge but you shouldn’t be
in the medium term. And we see this has are engaging closely with the authorities delaying health and education because if
been attained and it is likely to continue to through the dialogues like the one we had you do, it will be too late for young and sick
be. recently. Ugandans.
Also Bank of Uganda and Uganda as
a whole now have over four months of There is this impression that that pro- In the report, you project that first oil could
imports in foreign exchange reserves and gramme was critical signal to international come in 2023, what are the implications if
this is very good. It is higher than what the lenders that they could lend Uganda. Did we do not produce oil then?
rule of thumb would suggest but given the the programme have that value? The best place to look at that is the debt
vulnerability, we think it is a good position While it is mostly for these other interna- sustainability analysis. If oil is not pro-
that should be maintained. tional lenders to say, IMF programmes can duced, indeed the debt dynamics don’t look
However, Bank of Uganda’s capital is traditionally help in that sense. But there as nice. The whole macro-economic frame-
in the negative and we think it should be are many other ways in which the IMF can work will look different. We always do the
recapitalised in the next budget. It is impor- help. It is true that we are saying there is historical scenario, which is to ask what will
tant to maintain an independent and effi- no efficient fiscal anchor, and the IMF pro- happen if nothing new happens? If there is
cient central bank. gramme can be used as fiscal anchor (and no oil, the situation will be more difficult.
it has been used as fiscal anchor in the past) If oil comes late and we have a delay in
In the recent past, BoU has had a few but that is not only the fiscal anchor avail- exports, this could result in some liquidity
challenges, has this affected the financial able. There are others. pressures, as the current investments for the
sector? oil sector do rely on the enhanced repay-
The latest data we have for September When the Mobile money tax was intro- ment capacity that oil exports will bring.
2018 shows that the financial sector is duced, the IMF and other development

May. 17 - 23 2019 21
Medical, agric boost
A
By Isaac Khisa

surge in uptake
of medical and

insurance premiums
agriculture
insurance ser-
vices coupled
with increased
distribution network helped
Uganda’s insurance industry
to record a 17.5% growth in
Insurers record a 17.5% growth in gross
gross underwritten premiums
to Shs856bn in 2018. This is
underwritten premiums to Shs856bn in 2018
more than double insurers
recorded in 2012 when gross public is now aware that there
underwritten premiums stood
Gross Premiums Underwritten (2011-2018) is a dependable agency to seek
at Shs351.23bn. 1000 for help in case of a challenge.
The increase in demand for Last year, the Complaints
medical insurance saw this seg- Bureau received 153 complaints
ment record a 24.5% growth compared with 139 in the previ-
800
in gross underwritten premi- ous year, as at the end of last
ums from Shs161bn in 2017 December, 101 cases had been
to Shs200.45bn in 2018 while resolved. Uganda’s insurance
agriculture insurance recorded industry has 32 insurance com-
600
a slight increase in gross panies, one micro insurance
underwritten premiums from firm, one re-insurer, and five
Shs5.2bn to Shs5.3bn during the HMOs. In addition, the indus-
same period under review. try has 14 commercial banks
Financial results released on 400 and two credit institutions that
May 09 also show that non-life have been granted license for
business continued to dominate insurance products in partner-
the insurance industry in terms ship with the insurers.
of composition, though its 200
relative share has continued to
2011 2012 2013 2014 2015 2016 2017 2018
Going ahead
decline over the years. Source: IRA The insurance industry is
The relative share of non- expected to remain on a posi-
life business in total premium the region. Currently, Kenya’s tive growth curve in 2019 owed
declined almost four percent- insurance penetration stands to the projected growth of the
age points from 70% in 2017 at 3.4%, Tanzania 2.3% and economy, according to Kad-
to 66.6% in 2018. Though life Rwanda 1%. dunabbi.
insurance attracts less business Similarly, the industry’s net Uganda’s economy is pro-
volumes, it continued to grow asset base increased by 11% jected to grow at 6.3% in the
relatively faster at 28.6% to from Shs458bn to Shs508bn current financial year 2018/19,
Shs216.9bn during the period signalling a growing strength of the same rate is projected for
under review. insurers to handle more insur- the following year 2019/2020,
On the other hand, non-life ance risks locally as well as pro- following a recovery from the
insurance business recorded a vide adequate protection to the slump during financial year
12.3% growth in gross under- insuring public. Ibrahim Kaddunabbi 2016/17, according to the Inter-
written premiums to Shs570bn. Claims payments which is national Monetary Fund.
Health Membership Organisa- the core value that the insur- both product affordability and “Increased investment in
tions (HMOs) that include, ance industry offers to the accessibility. infrastructure investment such
among others, Case Medical policyholders and beneficia- “There were also improved as Standard Gauge Railway, oil
Clinic, International Air Ambu- ries increased by 11.9% to distribution platforms – banca- pipeline, Uganda Airlines and
lance and AAR recorded a 31% Shs326.7bn. surance and mobile technolo- the CCTV cameras in metro-
growth to Shs69.1bn. Ibrahim Kaddunabbi gies as well as enhanced public politan Kampala should further
The contribution of the Lubega, the Chief Executive awareness campaigns under- stimulate the market to form
industry towards the country’s Officer at the Insurance Regu- taken by various insurance sec- consortiums to underwrite
Gross Domestic Product also latory Authority of Uganda tor stakeholders,” he said. these risks,” he said, “the coun-
known as insurance penetra- (IRA-U) said innovations into He also said the company’s try’s reforms to improve busi-
tion increased from 0.81% to the development of customer- redress platform, Complaints ness environment will drive
0.84%. This, however, is far less centric products and strategic Bureau, has enhanced public stronger growth over the short
compared to other countries in partnerships have improved confidence in insurance as the and medium term.”

22 May. 17 - 23 2019
business

Umeme’s licence renewal


BOD Chairman Patrick Bitature says organisation and staff capability.
The company is investing heavily in auto-

negotiations to be concluded soon mation of the business processes, with tech-


nology to enhance operational efficiency.
However, he said there is a long road
By Julius Businge money to go into strengthening investments ahead to further propel electricity penetra-

P
in the sector and drive down tariffs. tion to acceptable regional levels from the
atrick Bitature is a top businessman He said renewing their contract at this current 26%.
and entrepreneur in Uganda with time is critical given that government has He said the continued investment in
interests in the energy, telecom- recently commissioned the 183MW Isimba the network has met demand for electric-
munication, real estate, mining and Hydropower dam and is about to commis- ity from various customers. For instance,
hospitality sectors. sion the 600MW Karuma hydro power dam demand increased to 9.1% in 2018 com-
He has earned respect by chairing boards which will depend on their distribution pared to a year before, with 3, 011 GWh of
of several big business entities. infrastructure to reach final consumers. sales. The demand was driven mainly by
His rich experience in these areas is the The good thing, he said, is that the industrial customers, new customer connec-
reason why, whenever, he gives his two company has invested immensely in the tions and reduction in energy losses.
cents on a particular matter, it is taken seri- infrastructure with 2018 alone amounting In addition, the distribution efficiency for
ously in business circles. to US$62million. Overall, the company has 2018 was 85.5% compared to 50% in 2005
On May 09 at the Kampala Serena invested US$627 million in the network as when the concession was given to them.
Hotel – Addis Hall, Bitature, who is also at December 2018 up from US$102million The company continued to focus on col-
the Umeme Limited Chairman Board of in 2010. lecting existing bills and arrears from past
Directors, flanked by the Managing Direc- In 2018, investments focused on new sales as part of its strategy to improve the
tor, Selestino Babungi, revealed on the side- customer connections, quality of supply cash generation capability of the company.
lines of the company’s 6th Annual General for Kampala Industrial Business Park,
Meeting that the firm’s power distribution upgrading of Tororo Cement Industries The future
license – which has 5 years to go – would be power, upgrading of Kakira power line, Babungi said as the company commence
renewed. He also said there is need for play- transformer injections and smart metering the next regulatory period – 2019 to 2025,
ers to invest more in the energy sector to installations. the electricity industry is growing at a
match government’s development plan that The company has connected more people faster rate and that they consider the key
is targeting energy, roads infrastructure and on the national grid noted as 513,000 in 2012 priorities being; expansion of the electricity
industry. “We had a good year (2018) finan- and 1.2million in 2018. distribution grid to evacuate the additional
cially with a few challenges but we shall Babungi said they expect further growth 783MW of generation capacity, creation of
overcome,” Bitature said. “Government with the implementation of the govern- demand and delivery of reliable and quality
called us to renegotiate our concession.” ment–led electricity connections policy that electricity to industrial customers as well as
The company’s gross profits have since aims to achieve 80% access to clean energy increasing electricity penetration from the
2012 increased from Shs235bn to Shs581bn by 2040. current 26% to 60% by 2027.
in 2018. Energy losses have reduced from 26.1% A total of two million new customers are
Amidst this solid financial performance, in 2012 to 16.6% in 2018. This, according projected to be connected to the electricity
Bitature, however, said they are mindful of to Babungi, has been achieved through grid by 2025.
the fact that negotiations about a conces- deliberate investments in the distribution Other areas targeted include; efficiency
sion of 20 years requires time, experts in the network to reduce technical losses and gains through reduction in distribution
legal, accounting and energy fields to avoid implementation of the commercial losses costs per MWh, energy losses reduction,
penning a bad deal for either parties. reduction strategy. and revenue collections efficiency – that
“We are optimistic that negotiations will He said that since 2005 when they got are important elements in determining the
be concluded in the next 3-6 months,” Bitat- the concession, the company has more than tariff.
ure said. doubled the electricity distribution network He said more resources shall be required
He said one of the items that Umeme is infrastructure, quadrupled the number of to service the increased customer base in
considering to admit is to reduce on their customers connected to the grid, increased addition to enhancing organisational capac-
return on investment noted as 20% in the distribution efficiency to 85.5%, built ity and human capital development.
current concession so as to allow more

May. 17 - 23 2019 23
interview

Now customers can


access credit information
via mobile phones
Sam Omukoko is the group managing director for Metropol Corporation Limited, a
business, information and credit management company. He spoke to The Independent’s
Julius Businge about their business in Uganda and the East African region.

Could you describe the role of the banks. Therefore, the first task for

O
Metropol Corporation Limited? us was to seek for data. The good thing
ur role is to compile and is that there is a rule that ensures that
share credit history of bor- data is shared with the already exist-
rowers in the credit market. ing player. We therefore got data from
We are a company operat- BoU and the existing player and later
ing in Kenya and Uganda. We got our did data cleaning. (However), we had
application and license in November noticed a problem of standards not
2015 for Uganda. We delayed enter- being observed and banks not doing
ing the Ugandan market because all submissions. So, we had to develop
the regulator (Bank of Uganda) had tools to help banks cleanup the data
made certain commitments where that they were sending to us. In mid-
an entity had been given exclusive 2017, we started connecting banks to
rights of operation for five years and start referencing. And given that these
had applied for an extension for an banks already had a relationship with
additional two years. In Kenya, we the existing player, we never wanted
got our operational license in 2011 to go in as a low cost provider as that
but our involvement in the credit would in the long run destroy the
information sharing mechanism industry. We had to first focus on spe-
started in 1994. cific value proposition regarding our
system, quality of data, and the quality
Then, what have of the credit report. So, quite a num-
you been doing ber of banks have moved to us. We
over the last have spent quite a bit of money on the
four years? system and we believe we are almost
The core ready to launch the bureau officially
business of in November this year. So far, we have
the bureau two million customers in Uganda and
is based on 27million in Kenya.
the data it
gets from On May 08, 2019 you launched a new
product known as Metropol Crysto-
bol in Uganda. How does it benefit
the market?
This product helps users to monitor
and control their credit information
using their mobile phones. The prod-
uct enables users to have direct access
to the bureau using MTN and Airtel
networks. It is enabling borrowers to
take control of their creditworthiness
and to negotiate favorable credit
terms with lenders.

What have you observed on the


Ugandan market so far?
We have realised that many bor-
rowers in the market are not aware

24 May. 17 - 23 2019
interview
of the existing and roles of credit reference a significant fact towards defaults we see in being high in Uganda. What are your rec-
bureau in Uganda because the system is the market. ommendations?
only locked to the banks that are supervised There is a lot of rigidity in the financial
by the Bank of Uganda. Yet there are many In September 2017, Equifax – a U.S. based system. Everything here follows the law
lenders that are not under the BoU. Also Credit Reference Bureau was hacked into and unlike in other places where the law follows
for one to borrow, they have to be given a 143 million consumers data was exposed innovations. Here, before you do anything,
financial identity manufactured by the other to the danger of identity theft. How safe is the law has to be in place first. Look, when
player in the market.That means that the your system? we came in 2015 there was an amendment
other player has an advantage and it is the That is the only incident I have heard that had gone to Parliament to expand the
reason we told BoU to create a level playing about. It is not that the hackers were mechanism to allow MFIs to come on the
field for all of us. We are talking to relevant smart…it is because Equifax forgot to run CRB. By February 2016, Parliament passed
authorities to see how people can use the an update which would have made the that amendment to the banking act which
National Identification Number to be able system more secure. A small mistake can gave way for drafting regulations which
to join the bureau instead of using the finan- cost the breach of trust of the system. CRB have never been approved to date. The sys-
cial card number. We believe that the lack systems are not new globally. The World tem is slow, rigid. I have told BoU to some-
of the National ID is hampering the use of Bank has a special unit that supports the times wear some hat of an entrepreneur to
the CRB and growth of the financial ser- development of credit bureaus across coun- be able to allow innovation to happen in
vices products. Our mobile phone product tries. They have given standards which cen- the market. We have revised our strategic
is connecting the lender and the borrower tral banks enforce. For you to get a license plan because most of the assumptions we
on the system and all are seeing each other. from the central bank, you must have met made collapsed because of the delays we
Borrowers can now know and see how those standards – which are developed by a faced. The National ID can do much for the
the lender has arrived on the decision to technical team at the International Finance economy but it is politicised. It can become
give the loan at a specific price. You can see Cooperation. Our activities have to be audit- a unique identifier for access of financial
that it is all about developing a transparent ed annually by internationally respected services – and this market can change
credit market. firms in addition to us sending monthly overnight. The other issue is about internet
reports to BoU. – many banks have a narrow bandwidth
With these new innovations, aren’t you and when it comes to using internet based
giving your competitor new ideas to fight applications it becomes a problem because
you back? systems are slow. Banks don’t want to incur
That is what a free market is all about. We
expect that competition will stiffen. We have
With support more costs.

set up a call centre here and already calling from BoU, we are What other economic related opportunities
customers in the market who are saying
they only get a few services. We will try to
now going to non- are you offering?
We are contributing towards Pay as You
harvest from the first mover advantage and regulated entities Earn, National Social Security Fund and
see what forms of partnerships we would
create with lenders. With support from
like micro finance have the capacity to create jobs. Our new
mobile phone product has made us open a
BoU, we are now going to non-regulated institutions, call centre currently manned by four peo-
entities like micro finance institutions,
money lenders; SACCOs who we think
money lenders; ple. This number will increase to between
50-60 people when SACCOs and other
shall start sharing data amongst themselves SACCOs who Micro Finance Institutions join the CRB.
and help their customers built credit history
using National Identity Cards.
we think shall We have capacity to create around 500 jobs
within three years time.
start sharing
But banks have been hit with bad loans
even with the CRB services in the market?
data amongst What picture do you have in mind for your
business in five years time?
Every time a mechanism like this [CRB] themselves We should be having between 7-10 mil-
is out to the market, some people will go lion borrowers in the database. In terms of
out to beat the system. If some borrowers number of businesses, we envisage to have
understand that SACCOs and other entities between 500, 000-750, 000. We will be hav-
are not part of the credit reference system, ing a product for each lender depending on
they will run there and borrow with their the environment they are working in. We
bad history. Our objective is to try and bring You are strong in Kenya and you want to will continue to raise awareness on CRB
everybody into the net. There is significant be stronger in Uganda. What is your strat- system since we are not a monopoly in this
number of initial borrowers who are inac- egy for other markets in the region? market.
tive in our system. Where did they go? They Our strategic plan running from 2019-
are in SACCOs and Micro-Finance Institu- 2023 is targeting about 10 countries on the How do you manage your tight schedule
tions borrowing with a bad history. The African continent including Tanzania, Zam- as a manager?
bureau mechanism is supposed to allow bia, Malawi, Zimbabwe and other markets. This is a highly knowledge business and
more people to come into the borrowing We still want to consider more from the you cannot supervise people. People have
and lure banks develop more products that South before we consider more from the to think to come up with solutions. My style
are non-collateral. When that happens, the North. We have relationships with strong has always been management by objec-
product fit become more refined. Many players like Afreximbank who want to see us tive –sit down and agree on targets and put
people default because they get wrong covering more countries on the continent tools of work at work. I support internal
products. We expect banks to be more inno- before partnering with us. training programmes and we have a system
vative and develop more new products. In that empowers managers not to fear to take
Uganda, interest rates are high and that is You hinted on the cost of doing business initiatives.

May. 17 - 23 2019 25
Executive Style
business

ICT empowers local population


First, recently you held a other agriculture sector
three-day international Catholic Relief institutions in developing
conference on ICT4D in and transitional countries.
Kampala. How signifi-
Services has worked CRS Uganda between 2013
cance was the conference in Uganda since -2018 ran the Farmer to

I
to Uganda’s economy? 1965 in agriculture Farmer program in Cen-
CT4D stands for Infor- and microfinance tral, East, North East and
mation and Commu- South Western Uganda.
nication Technology
sectors among The program benefitted
for Development. It is others. Country 13,258 farmers as direct
basically the use of digital Representative, beneficiaries (51 percent
technologies to improve Niek de Goeij, women) with the support
the future for the poor and spoke to The of 132 volunteers. Some
marginalized. ICT4D is key achievements include:
an annual event founded Independent’s Isaac Farmer organizations that
by CRS together with Khisa about their received and adopted vol-
various regional and global efforts to promote unteer technical training
partners. In Uganda, we ICT for development. and recommendations reg-
have technology innova- istered 20-30% increase in
tion in agriculture, health, yields per acre due to better
emergency response agronomic practices, 60%
among others some of emergency response, agricul- broader adoption of basic ICT reduction in post-harvest
which have been developed by ture and health. Early this year across the country especially losses due to improved post-
Ugandans. Participants at the in Uganda, for example, we with the availability of internet. harvest management practices;
conference, including Ugan- distributed android tablets to The government need to keep and rural financial institutions
dans, got to share how they 370 social workers across the on providing a regulatory (SACCOs) that received F2F
use innovations in digital tech- country through our 4Children framework that enables innova- technical assistance registered
nology for the benefit of their program. These tablets are tion and creativity in the private average 65% increase in share
work. We also heard from ICT equipped with legal policies sector. capital with more than double
companies and development and frameworks, learning and increase in savings volumes.
professionals how they adopt, reporting tools, and contacts What are some of the chal- Through volunteer trainings
adapt, or completely reengineer of various officials. We have lenges, if any, that the local and adoption of recommenda-
to integrate ICT into demand- already registered a great suc- population face to embrace tions from tailored technical
driven solutions for local and cess as social workers have ICT for development? assistance that addresses issues
global challenges. Uganda reported back to us saying they Broadband infrastructure of climate change, land deg-
hosted the conference because can now refer to laws and poli- is still low in Uganda. Not radations, pests and diseases,
it is at the forefront of utilising cies in real time by just a click all Ugandans have access to 202,388 Ha of land was brought
ICT for development. away. But the real impact of internet and when connected, under improved produc-
the conference is that it attracts the cost of internet service is tion management and 37,010
Catholic Relief Services has over 900 professionals from the still high. In the mobile sector, Ha under improved natural
been organising ICT4D con- private sector, governments, for instance, only 45 percent resource management.
ferences for the 11th time now. donor and NGO community of the country has 3G cover-
What have been the impact to share ideas and products, age. Ugandans and especially What next now that the project
so far? and take them to scale. This the youth are eager to adopt came to an end in 2018?
CRS started ICT4D to sharing, testing, networking ICT4D, but access remains Having successfully complet-
improve our work because and developing of new ideas a challenge – which actually ed the first cycle of the project
we wanted to improve older, and approaches is what brings includes accessing the basics of (2013-2018), CRS Uganda has
paper-based processes, have real impact for people on the internet capable phones. been awarded a second cycle
better quality data, and be ground. of F2F program running 2019
more accountable and transpar- Five years ago, you partnered -2023. Uganda is part of CRS
ent to our donors and those What is your assessment with Farmer to Farmer to im- global F2F program, imple-
we serve. But every year we of ICT usage in Uganda to prove farmer’s productivity mented in six countries includ-
have seen the technologies achieve economic develop- and grow agribusiness. How ing Rwanda.
change and we have realized ment? has the initiative performed? In consultation with the
that ICT4D is empowering the Uganda is on a good trend Farmer-to-Farmer is a peo- agriculture ministry, the local
people we serve to be more when it comes to adoption of ple-to-people flagship program USAID mission, and other key
independent, self-sufficient and ICT4D and it is going to help in of the USAID that promotes stakeholders in the agriculture
successful, rather than tools moving the country forward. agricultural sector develop- sector; the Uganda F2F pro-
for international organizations Ugandans seem to run with ment. The program provides gram is providing technical
like Catholic Relief Services. technology as there is a vibrant technical assistance from U.S. assistance to the livestock and
We still use ICT4D in a wide ICT entrepreneurial start up volunteers to farmers, farm agribusiness value chains.
range of projects including sector in Kampala. We also see groups, agribusinesses, and

26 May. 17 - 23 2019
business
PENSION CSR

Enwealth to host Airtel promotes mobile money with new promo


pension forum bands. The reduction applies

P
to sending money (person
ensions administrator, En- to person). The promotion,
wealth Financial Services, is dubbed ‘Suukuma Cash’
set to host representatives of will see 22 customers and
pension funds and strategic three agents standing a
investors from across the globe this chance to win Shs500,000
month in the second annual Global daily upon sending money
Investment Opportunities Conference worth any amount in the 90-
(GIO). day duration.  In addition,
The conference is expected to 10 subscribers will stand
explore ways of spurring growth in a chance to win an all-
Africa’s pension industry through expense paid trip to watch
Alternative Investments. Airtel-Head-of-Brand-and-Communications, Remmie-Kisakye the Uganda Cranes live at
The 3-day conference to be held (R) speak to the press recently AFCON in Egypt. According

O
on May 21-23 in Mauritius, themed to the company’s Managing
“Investment and n May 08, Airtel enjoy a major discount in Director, V.G. Somasekhar,
Strategic Uganda announced tariffs. Officials said the new the promotion is an
Leadership in Social 90-day promotion tariffs have been streamlined addition to the convenience
Security” will bring during which up to 60% with three prices and instant solutions the
together regulators, subscribers sending money respectively; Shs100, Shs500 platform offers especially
pension fund within the network would and Shs1, 000 across all during the Ramadan season.
managers,
investment experts
and thought leaders FARMING
to discuss unique perspectives,
approaches and
opportunities for pension funds to UBL MD, trade minister urges farmers

F
contribute to Africa’s development
needs and global trends in armers supply- of the increasing demand Tusker presents an oppor-
investment. ing inputs to beer for sorghum and cassava tunity for local farmers to
“Infrastructure, for instance, is one companies have a by beer companies and provide high quality raw
of the emerging asset classes which is big opportunity to take to commercial farm- materials.
lucrative and long-term with huge po- earn more by increasing ing. The key local raw
tential benefits for pension funds and production and sustaining She said the use of the materials used in Uganda
guarantees strong future cash flows supply of inputs. Speak- local raw materials is in for beer production are
with regard to return enhancement ing at a cocktail for host- line with the current Buy sorghum, barley, corn
and portfolio risk management,” ed by Uganda Breweries Uganda Build Uganda starch (maize) and tapioca
Enwealth CEO, Simon Wafubwa Limited at the Lake Victo- initiative implemented (cassava). The company
(Pictured), said. ria Serena Hotel in honor by the government with invests around Shs20bil-
This conference comes at the time of visiting board members the aim of supporting the lion in agriculture and
pension funds are grappling with from East African Brew- local enterprises. agri-business to enable it
diminishing and volatile returns from eries Limited (EABL) on UBL MD, Mark Ocitti, collect over 25,000 metric
traditional asset classes whose returns May 08, Trade minister, said local production of tons of raw materials
have become less attractive due to Amelia Kyambadde urged beer brands like Ngule, from 17,000 farmers
volatile markets. farmers to take advantage Senator, Bell Lager and across Uganda

TECH

TECNO unveils upgraded SPARK 3 phone series

C
hinese mobile maker, TECNO privacy as it enables users to set up their adequate storage space for users. (SPARK
Mobile, has unveiled the SPARK personal APP such as Tinde “invisible” 3’s 16GM RAM + 1GB ROM version still
3 and SPARK 3 Pro mobile phone from their mobile phone desktop. The run on Android O Go system,” said Gladys
series on the Ugandan market and spark 3 series also comes with 16GB RAM Liu, the company’s e Marketing Manager
prices at Shs 429 and Shs 489, respectively. + 2GB ROM version and runs on HiOS 5.0 in Uganda.
The device that is the third installment and the Android 9.0 Pie. This development comes a week since
from the SPARK series, comes equipped “ Also, the device comes with the Infinix unveiled the Infinix S4 on the
with AI technologies and high camera MTK 6761 processor and a 2.0GHz more Ugandan market. Established in 2006,
configuration for brighter photos that powerful CPU that gives a more enjoyable TECNO Mobile has presence in more than
results in high quality, bright and smooth experience when interacting with the 60 countries globally.
pictures. The smartphone also comes device, coupled with a memory capacity
with special feature to protect consumers’ of 16GB RAM + 2GB ROM that provides

May. 17 - 23 2019 27
business

Posta Uganda gets new board


By Isaac Khisa lowing the end of his contract

U
on March 31, 2019.
ganda Post Limited He has been accused of
popularly known as financial mismanagement,
Posta has received intimidation, nepotism and
a new Board of Di- non-alignment of the entity’s
rectors for a three-year term strategic plan to the National
chaired by former Budiope Development Plan, the claims
Member of Parliament, Sulei- he has vehemently denied.
man Balyejusa Kirunda. Arinaitwe has been at the
UPL has been with no BOD helm of UPL since 2008 amidst
since March 2018. Other mem- the company’s poor perfor-
bers appointed on the board mance. The Auditor General’s
include; Dorothy Telopecho report for 2015 shows that
Butuli, Hussein Kashillingi UPL generated Shs18.98bn but
Rugaba, a former legal assis- incurred Shs18.45bn as expen-
MTN Uganda Ag. CEO, Gordian Kyomukama (L) hands over a dummy tant to the President, Richard diture during the year under
cheque to Chief Executive Officer, UMC Victoria Hospital, Dr. Anurag Shah, Mwesiga, Herbert Kiggundu review. This left the company
on May.08 to facilitate provision of corrective surgery to children with Mugerwa, Lillian Aber and the with merely Shs528.2million
disabilities and/or special needs.   COURTESY PHOTO. sitting managing director. as profit.
This follows cabinet approv- In 2016, the company
al of the appointed mem- recorded a Shs1bn net profit.
bers on May.06. For now, it But in 2017, the company
remains unknown on whether recorded a 540% drop in prof-
the new board will appoint a its to Shs 4.45bn loss.
new managing director. Further, the Auditor Gener-
The Solicitor General, in a al’s report for 2018 shows that
letter dated April 04, to the UPL had an outstanding tax
ICT ministry said it is the role payment of Shs4.3bn related to
of BOD to appoint a managing unpaid Pay As You Earn and
director. value added tax.
This comes at the time the Further, the report notes
current MD, James Arinaitwe, that there was high staff turn-
is caught up in a fight with a over at the entity which affects
section of employees demand- its operations.
ing that he be shown exit fol-

Stanbic Bank CE Patrick Mweheire handover a dummy cheque worth Shs


1 million of seed money to St Marys College Aboke, one of the finalists
crowned to battle it out at the Stanbic National Schools Championship Finale
in July this year. The money will be injected into a juice making business the
students founded.   COURTESY PHOTO.
Weekly share price movement (May. 13)
Security May 13 April 29 Movement
BATU 30,000 30000 00
BOBU 129 129 00
CENT 1,184 1,178 0.5
QCL 170 173 -1.7
DFCU 700 670 00
EABL 7,944 8,118 00
EBL 1553 1,531 00
JHL 15,29 15,313 00
KA 143 183 00
KCB 1544 1,660 00
NIC 14 14 00
NMG 2,154 2,140 0.6
NVL 334 334 00
SBU 30 29 3.4
Airtel Uganda Sales and Distribution Director, Ali Balunywa, handover food stuffs UCHM 12 14 14
to the Muslim fraternity in support of their Holy month of Ramadan on May. 10. UCL 16 16 00
UMEME 300 300 00
ALSI -- -- --

28 May. 17 - 23 2019
comment
By Aryeh Neier
Indicting the ICC
In the 17 years since it began operating, the ICC has
secured lasting convictions against only six people

T
he International Criminal Court overturned the conviction (for war crimes) to refer crimes being committed there to
has come under withering criticism of Jean-Pierre Bemba, the Democratic the ICC. China would also veto any resolu-
from the first four presidents of its Republic of the Congo’s former vice presi- tion referring to the ICC its so-called re-
oversight body, the 123-member dent and the highest-ranking official the education camps, where roughly a million
Assembly of States Parties, following its ICC had ever convicted. Uighurs – an ethnic and religious minority
decision not to investigate war crimes and All told, in the 17 years since it began that the authorities view as a security threat
crimes against humanity in Afghanistan. operating, the ICC has secured lasting – are currently detained.
The reproach, which came in the form of an convictions against only six people. This This does not mean, however, that the ICC
essay published by the Atlantic Council, is weak record contrasts sharply with those has no options. For starters, it should indict
unprecedented but not unwarranted. of the ad hoc tribunals established by the Filipino President Rodrigo Duterte, who
While the four diplomats – including UN to prosecute the war crimes committed has directed the extrajudicial execution of
former United Nations High Commissioner in the former Yugoslavia, Rwanda, and about 20,000 alleged participants in the illicit
for Human Rights Zeid Ra’ad Al Hussein – Sierra Leone. Together, these tribunals have drug trade. Though the Philippines recently
remain “strong supporters” of the ICC, they secured about 165 convictions, including of revoked its ratification of the ICC treaty,
are “disappointed,” “frustrated,” and “exas- top officials, after thorough, credible trials the investigation was already underway,
perated” by its weak performance. Given and appellate proceedings. meaning that proceedings could continue.
how desperately the world needs the ICC, As the former Assembly presidents’ essay The ICC could also indict those respon-
they argue, an “independent assessment of acknowledges, “we have never needed sible for Myanmar’s forcible expulsion of
the Court’s functioning by a small group of the [ICC] more than today.” In Syria and more than 700,000 Rohingyas to Bangla-
independent experts is badly needed.” Yemen, for example, atrocities are being desh, which is a party to the ICC. Carrying
As someone who urged the creation of the committed on a daily basis. The ICC should out such investigations effectively and
ICC two decades ago and has been among be securing justice for these crimes, not only without delay would restore the ICC’s
its leading proponents ever since, I agree for the victims, but also to discourage com- credibility and bolster its ability to fulfill its
that the court needs fixing. The presidents’ batants in future conflicts from behaving intended role as a powerful force for inter-
letter cites the April 12 decision on Afghani- with such blatant disregard for the rule of national justice.
stan, which reflected a lack of confidence law, international norms, and human rights. To succeed, the ICC will need to overcome
that the ICC could successfully carry out the But, as it stands, the ICC is unable to act, strong resistance, not only from dicta-
job. But frustration with the ICC’s ineffec- because Syria and Yemen have not agreed tors and warlords, but even from elected
tiveness has been building for a long time. to be subject to the ICC’s jurisdiction, and leaders, especially U.S. President Donald
Consider the case of former President Lau- Russia – probably joined by China – would Trump. In April, when the ICC was deter-
rent Gbagbo of Côte d’Ivoire. After his elec- veto a decision by the UN Security Council mining whether to proceed with its inquiry
toral defeat in 2010, Gbagbo refused to step into war crimes in Afghanistan – including
down. The ensuing violence, which was any that may have been perpetrated by
widely attributed to forces under Gbagbo’s American forces – the Trump administra-
control, resulted in some 3,000 deaths. Yet,
after several years in ICC custody, Gbagbo
the ICC will need tion revoked the visa of the court’s chief
prosecutor.
was recently acquitted of all charges of war to overcome If the ICC is to fulfill the role for which
crimes and crimes against humanity. He
remains in detention while the prosecution strong resistance, it was created, it can neither bow to such
pressure, nor allow its deficient perfor-
appeals the trial court’s judgment.
In fact, though the ICC has initiated
not only from mance to continue. Instead, its leaders
– especially its chief prosecutor, the Gam-
proceedings against multiple heads of dictators and bian attorney Fatou Bensouda – must take
state, none has been convicted. Sudanese
President Omar al-Bashir was indicted a warlords, but recent criticism as motivation, and prove
that they are up to the task.
decade ago for crimes against humanity
and genocide in Darfur, but was never
even from
apprehended. And while Kenyan President elected leaders, Aryeh Neier, President Emeritus of the
Uhuru Kenyatta faced charges related to
ethnic violence that followed disputed elec- especially U.S. Open Society Foundations and a founder
of Human Rights Watch, is author of `The
tions in 2007, the case was withdrawn after President Donald International Human Rights Movement: A
witnesses against him became unavailable History’.
to testify, presumably due to intimidation Trump
or bribery. Copyright: Project Syndicate, 2019.
Gbagbo’s acquittal was preceded by
another major setback for the prosecution
at the ICC. Last June, an appellate tribunal

May. 17 - 23 2019 29
comment
By Folashadé Soulé and Camilla Toulmin
The truth about African migration
Africa as a whole accounts for only around 14% of
global migrant flows, most of it on the continent

I
n recent years, images of young Africans the support of international institutions, working to generate the quality jobs needed
attempting to reach Europe, sometimes to create better frameworks for managing to entice young Africans to stay home.
through the most daring and desperate migration on the continent. Beyond In recent years, entrepreneurship has
routes, have become a fixture on global collecting and sharing data, international been hailed as the solution to Africa’s jobs
and national news channels. Cynical institutions can share knowledge and problem. But spurring entrepreneurial
politicians in Europe and the United States best practices with governments, as the activity will require concerted action from
have argued, for the sake of winning votes, Migration Dialogue in West Africa has governments. For example, to address
that these (largely male) immigrants are done. African governments should increase the mismatch between the skills private
“invading” their countries, threatening to their contributions to such initiatives, which companies seek and those Africa’s young
steal locals’ jobs, or worse. have so far been funded largely by Western people possess, governments should
Nothing could be further from the truth. donors. invest in education in science, technology,
As we were reminded during the 2019 Mo Technology can also help. The non-profit engineering, and math, and in improving
Ibrahim Foundation Governance Weekend, Techfugees, for example, is already working vocational training. Moreover, governments
there is, in fact, no mass exodus from Africa to coordinate the tech industry’s response should work with the private sector to
at all. to the refugee challenge, spurring the improve the business environment.
In 2017, more than 50% of the world’s development of solutions “for and with Governments should also capitalize on
migrants originated from just 21 countries. displaced people.” Existing projects include the dynamism of the large informal sector,
The top four were India (6.4%), Mexico Migreat, which helps refugees navigate the which employs an estimated 75-90%
(5%), Russia (4.1%), and China (3.9%). The asylum application process, and GeeCycle, of Africans. Formalizing agriculture,
African country that accounted for the focused on recycling and donating mobile agro-processing, and many small-scale
largest share of migrants, Egypt, ranked phones to refugees. manufacturing and service enterprises
19th. More fundamentally, keeping migrants will require governments to provide
Africa as a whole accounts for only safe requires governments and media to infrastructure, public services, and access
around 14% of global migrant flows, most set the record straight. In South Africa, to credit.
of which are confined to the continent. for example, anti-immigrant rhetoric has At the Now Generation Forum in Abidjan
Several recent reports – by the International recently fueled xenophobic attacks on earlier this month, debates among youth
Organisation for Migration and the Malawians and Zimbabweans. delegates made clear that African young
United Nations Conference on Trade and While African migration flows are not people will no longer passively await a
Development, among others – indicate as large as some politicians claim, they better future. They are doing everything in
that around 70% of Sub-Saharan African could increase, as the effects of climate their power not just to develop their skills
migrants remain on the continent, mostly change – such as droughts, floods, and and find quality jobs, but also to bring
within East and West Africa (18.5% and other natural disasters – intensify. Already, about political change, even if it means
16.7%, respectively). Almost half (46%) of all climate change is contributing both to taking to the streets to challenge their
intra-regional African migrants are female. extreme events, such as Cyclones Idai governments, as just occurred in Algeria
Western countries thus face little risk and Kenneth in Mozambique, and to and Sudan. But they cannot do it alone.
of a massive wave of African migrants. chronic emergencies, such as increasingly African governments and the international
And a substantial number of migrants is unpredictable weather patterns in the Sahel. community must do more to support their
not necessarily a bad thing for the African These trends highlight the growing urgency ambitions – and the continent’s future.
countries that receive most of them. As of improving how migration is managed. This commentary summarizes the
intra-African migration fosters economic Of course, migrants’ home countries also debates at an INET-CGET workshop
connections between rural and urban have a role to play. Migration represents held during the Mo Ibrahim Governance
areas, and among regional neighbors, host a brain drain within Africa – given that Weekend, which brought together
countries can reap important economic and most young African migrants are educated, panelists from Afrobarometer, the African
social benefits. their departure undermines development Development Bank, UN Migration, UNU-
This point is underscored by a 2018 in the countries that need it most, while INRA, the African Union Development
Afrobarometer survey of 34 African fueling growth it in host countries by filling Agency, and representatives from the
countries, which shows that younger, labour gaps, boosting consumption, and African private sector.
better-educated urbanites are more likely expanding the tax base.
to have considered emigrating than their Migrants do send back remittances, Folashadé Soulé and Camilla Toulmin are
older, less-educated rural counterparts. which amount to one of the largest sources associates at the Institute for New Economic
They are motivated, most often, by the of financial flows to developing countries Thinking’s Commission for Global Economic
desire to find a job (43%) or to escape globally. But this money is used mainly Transformation.
economic hardship (33%). to supplement consumption for recipient Copyright: Project Syndicate, 2019.
Tapping these migrants’ potential, and families and pay for school fees, rather than
ensuring that intra-African migration is to finance productive investments. That is
a safe, orderly, and productive process, why home-country governments – again,
will require African governments, with with international support – should be

30 May. 17 - 23 2019
comment
By CPA Dr. Protazio Begumisa
Sustaining Uganda Airlines
An accountant’s perspective regarding the
sustainability of the airline based on previous pitfalls

T
he euphoria around the re-birth of in the airline business. Therefore, if Uganda Airlines should consider
Uganda Airlines can be felt in nearly empowered to self-handle, a substantial leasing rather than purchasing the larger
every part of Uganda. With two cost will be saved by Uganda Airlines. aircraft, because leasing is a more cost
new aircraft already in the country, Ground handling also avails additional effective option. In the aviation business,
maiden commercial flights are slated for income generating opportunities if it is commonly said, “why purchase an
June 2019. the ground-handling entity provides aircraft when you can lease one?” If a
On the flip side, some aviation pundits handling services for other operators. leased plane becomes problematic you
have expressed skepticism regarding  The aircraft hangar: The national airline can return it and get another one from
the sustainability of the airline, based on must have its own aircraft hangar, to the same leasing company or other
previous pitfalls. enable routine maintenance checks. operators. What happens if a purchased
A national airline is ideal for Uganda. This saves exorbitant costs incurred in plane develops a major problem that
Its contribution to the economy cannot contracting external service providers. requires say a D-Check (sometimes
be overstated as it opens doors for The old hanger for the defunct Uganda known as a `Heavy maintenance Visit’)?
several revenue streams. These include Airlines should be refurbished or a new The cost may become unbearable.
air navigation and airport charges levied one constructed. Right from the onset, we must think
by the Civil Aviation Authority, income  Use the Leasing Model to Acquire beyond Rwanda, Kenya, Juba and
for catering service providers, and Aircraft: Whereas Uganda Airlines has Burundi routes and do a proper route
business for tour operators and travel purchased the CRJ-900 Bombardiers for cost analysis to guide decision making.
agents. It will increase traffic to hotels; regional flights and plans are underway We must invest in the high traffic routes,
especially around Entebbe and create to purchase larger Airbus aircraft, this through a cost effective model.
more employment opportunities for does not adequately position the airline  Establish in-house Catering: This will
Ugandans. There will be a substantial to counter competition from the already have a trickle-down effect, as income
boost to tourism due to the direct established airlines plying long-haul will be ploughed back to support
routes to Uganda. Over the years, routes. Traffic is highest along routes Uganda’s agricultural sector and save
tourism numbers have not risen to the to business destinations like Dubai and on the operating costs.
required numbers, partly owing to the South Africa. Therefore, smaller aircraft  Invest Substantially in training:
absence of a national carrier. The cost become less viable, as cargo must either Training for pilots, cabin crew and
and inconvenience of having to change be shipped or placed on alternative ground staff is a costly but worthwhile
several flights in order to arrive in airplanes. This creates unnecessary investment, to ensure competence and
Uganda is a deterrent. The re-birth of delays for the business folk who love to reinforce confidence in safety standards.
Uganda Airlines, therefore, is welcome. fly with their cargo.  Minimise Government Interference:
So what should the management of the One of the setbacks that the previous
Airline do to ensure the sustainability of airline encountered was insufficient
this goldmine? cash flow. This was exacerbated by,
 Recruit Professionals: Job positions
There
among others, government officials
should be advertised openly and who travelled on credit but did not

will be a
offered to competent candidates. fulfill their obligations to clear payment
Recruitment policies for specific on time. Tickets for all travelers must be
professionals should be adhered to.
For example, accountants should have substantial purchased in cash or by credit card, and
not on credit.
professional accountancy qualifications,
such as the Certified Public Accountants boost to  Plan for Domestic Flights: The airline
should plan for smaller aircraft like
(CPA). Heads of Finance and audit
should be members of the Institute
tourism a 15-25 seater aircraft to facilitate
travel to Uganda’s numerous tourism
of Certified Public Accountants of
Uganda (ICPAU), in tandem with the
due to destinations, and tap into the business
potential in the oil rich Hoima.
Accountant’s Act Section 34 (2).
 Manage Costs: Bankruptcy and
the direct CPA Dr. Protazio Begumisa is the immediate

routes to
past President of the Institute of Certified
corruption are the major issues that Public Accountants of Uganda (ICPAU)

Uganda
plagued the defunct Uganda Airlines.
Therefore, belt tightening and ring
fencing should be applied.
 Ground Handling: Uganda Airlines
must be allowed to self-handle rather
than be handled by private operators.
Ground handling costs are the heftiest

May. 17 - 23 2019 31
comment
By Nathan Were
Uganda’s jobs of the future
The government needs to tag its industrialisation with
investments in right skills for the fourth industrial revolution

P
resident Yoweri Museveni has with more than half of employees continuous evolve the learning as they
over the last couple of months needing to learn different or more monitor the trends in the general labor
been launching factories in advanced skills. The International market for skills needed for an ideal
several parts of the country Finance Corporation report indicates worker of the future.
as one of the many strategies his that critical thinking, communication, The current workforce will equally
government has adopted to transform problem solving, leadership, have to strive to learn a new skill
Uganda to a middle-income status collaboration, computer literacy, or two if they are to survive the
by 2020 and arrest the ballooning application of technology, creativity, wave that will be sweeping the
youth unemployment which stands data analytics, decision making, and labour market. These changes are
at over 64%. While this is a good reasoning and team work will be generally anticipated to cut across
and applauded move, the changing among the top skills needed for the all professions, from engineering to
and dynamic nature of work will future of work. medicine and anything in between.
soon require that industrialisation Education systems will need to Finally, is there a business
efforts are coupled with investments change what, how and when people opportunity for the private sector
in building the right skills for learn. The current learning approaches educationists? Absolutely yes. The
employability in the fourth industrial and pedagogy are not prepared for shift in the future of work presents
revolution which is largely being the pace or scale of change required a huge revenue opportunity for the
driven by technology. to address the current technological private sector educationists. In Sub
While the base infrastructure such shift. The education institutions will Saharan Africa alone, the market
as roads, energy and streamlining need to get closer to employers and opportunity for digital skills is
processes of doing business are key; continuously refine their in-class estimated at $130 billion through 2030
industrialisation efforts will suffer if learning to meet the demands of the with trainings focused on business to
investors cannot find the right skill job market now and in the future. business, business to government and
set to run operations. The influence The education system will have business to consumer models. Well
of technology and automation means to prepare learners from early on designed and delivered short courses
that the future of work will look very to acquire the skills needed and are going to be on high demand
different than it is today. This will as employees and those looking to
require strategic long-term planning enter the labour market seek to keep
by governments to shape the skills up with the demands and changing
people need to become employable. nature of work.
About 65 percent of children entering
primary school today will end up Uganda will The government, therefore, need to
plan and strengthen the capacity of the
working in a job that does not yet
exist. A recent International Finance need to think human resources and position them
for the jobs being created by these
Corporation (IFC) study titled ‘Digital
skills in Sub-Saharan Africa’ indicates
beyond basic factories now and in the future.

that over 230 million jobs in Sub-


Saharan Africa will require digital
infrastructure The writer is a Senior Operations
Officer at the World Bank Group based in
skills by 2030. The supply of digitally- to strategically Nairobi.

invest in the
skilled labour will have to increase to Email: were.nathan@gmail.com
meet the anticipated labour market

right skills
needs, otherwise, African economies
will falter. In many countries we have
already witnessed companies turning
to talent in the western world because employers
of absence of local resources.
Uganda will need to think beyond need
basic infrastructure to strategically
invest in the right skills employers
need. Employers anticipate that more
than 40 percent of skills required for
the workforce will change before 2022,

32 May. 17 - 23 2019
Your recurrent miscarriages
Could your man’s damaged sperm
have a significant role in them?

I
By Adam Watkins that the DNA contained within the sperm higher concentrations, reactive oxygen
is not damaged or fragmented. Studies species can damage sperm cells and their
t’s an unfortunate fact that one in have shown that factors such as poor diet, DNA.
four pregnancies will end in a mis- being overweight, smoking, infection and The researchers also noted that the men
carriage, typically within the first 12 pollution all increase how fragmented the whose partners suffered from recurrent
weeks of pregnancy. In most cases, DNA is within sperm. As sperm cannot miscarriage were also heavier than the con-
this will be a single, one-off event repair their damaged DNA, high levels of trol men as well as older. Recently, there
with the underlying biological cause sperm DNA fragmentation is viewed as a has been a lot of interest in the relation-
unknown. However, around 1% of couples leading cause of infertility in men. ship between a father’s age, the quality of
will suffer the agony that is recurrent mis- Researchers now believe that high lev- his sperm and the health of his offspring.
carriage. els of sperm DNA fragmentation are also As men produce sperm throughout their
Recurrent miscarriage is typically linked with increased risk of miscarriage lifetime, the belief has been that age does
defined as the loss of three or more preg- and a recent study demonstrated a link not affect a man’s fertility. However, recent
nancies in a row. As the mother carries the between sperm DNA fragmentation and studies have suggested that a father’s age
pregnancy, the traditional belief has been recurrent miscarriage. at the time of conception might affect the
that the underlying cause of miscarriage health of his children.
resides with her. But maternal factors such Some studies have shown that for men
as hormone imbalance or an inability for over 40, there is an increased risk for mis-
the womb to support the pregnancy only carriage, rare birth defects, autism, schizo-
account for about half of recurrent miscar- phrenia and some types of cancer such as
riages. It’s clear, then, that other unknown leukaemia. Studies in mice and humans
factors apart from maternal health play a also suggests that poor paternal diet (too
significant role in miscarriage risk. This much or too little) can influence the long-
lack of understanding has lead research- term health of offspring, increasing their
ers to investigate whether the quality of a chances of developing obesity, diabetes
father’s sperm may be involved. and/or heart disease.
The link between a male’s health and
Healthy fathers, healthy sperm well-being of a male and the quality of
Before becoming pregnant, many wom- his sperm is now well established. It is
en will assess and modify their current also becoming apparent that sperm qual-
lifestyle choices, for example drinking or ity influences a range of factors including
smoking less, in order to ensure a healthy a man’s fertility, the likelihood of him
pregnancy. But the health of the father at becoming a father and even the long-term
the time of conception is one factor that is health of his children. However, more
often overlooked. We now know that the research is needed to understand the links
quality of a man’s sperm is directly linked Researchers from Imperial College Lon- between the health of a father, the qual-
to his health. don studied the quality of sperm in men ity of his sperm and the well-being of his
Excessive alcohol consumption, smok- whose partners had suffered with recur- offspring.
ing, stress – and even the type of under- rent miscarriage. They then compared Much of the fundamental research
pants he wears – can all affect the quality those sperm with sperm from men whose to date has been conducted in animals.
of a man’s sperm. One of the biggest fac- partners had not experienced miscarriage. As such, it is vital that we now establish
tors affecting sperm quality is obesity. In They saw that sperm DNA fragmentation whether the same effects are seen in
many countries, while rates of obesity have levels were twice as high in men whose humans. What is clear though is that both
been increasing, male fertility has been partners suffered with recurrent miscar- prospective parents in couples who intend
declining. Studies in both men and mice riage than in the control group. on becoming parents should assess their
show that sperm from overweight males The researchers also found that the lev- current lifestyle habits to maximise their
are less motile, are less likely to fertilise an els of a group of molecules called “reactive chances of a healthy pregnancy.
egg and are less likely result in a healthy oxygen species” were four times higher in
birth. men with DNA damaged sperm. Reactive Adam Watkins is Assistant Professor,
The prime goal of sperm is to fertilise oxygen species are produced naturally by University of Nottingham
the egg and pass on the father’s genes to every cell, and small amounts are neces-
the next generation. It is therefore essential sary for male reproduction. However, at

May. 17 - 23 2019 33
health

Does living alone increase


mental health risk?
Studies have shown that loneliness
is linked with depression and anxiety
By Tim Newman increase mortality risk.

A
During what some experts
new study has con- call a “loneliness epidemic,”
cluded that living this finding is particularly
alone is linked to com- important. Similarly, because
mon mental disorders. ill mental health is a growing
The authors have also identified concern, understanding the risk
the main driver of this worry- factors associated with CMDs
ing relationship. might help turn the tide.
Some common mental disor- Of course, not everyone who
ders (CMDs) include mood dis- lives alone is lonely. However,
orders, anxiety, and substance for those who are, interventions
use disorders. to tackle loneliness are avail-
According to some studies, able. These may include talking
almost one-third of people therapies, social care provisions,
will experience a CMD in their and animal-based interventions.
lifetime. on older adults, so their find- neurotic symptoms during the
ings may not apply to other age previous week. The next and most chal-
These conditions can have a lenging step is to find ways to
significant impact on the indi- groups. The surveys also collated
Also, earlier studies generally data on a range of variables, ensure that people in need get
vidual, of course, but due to access to these tools.
their high prevalence, they also focused on just one mental con- including height and weight,
dition: depression. This might level of education, employment The researchers acknowl-
affect society at large. edge certain limitations to the
Due to the widespread influ- not provide the full picture. status, alcohol and drug use,
Previous work has also not social support, and feelings of study. For instance, this was a
ence of CMDs, scientists are cross-sectional study, meaning
keen to understand the full quantified how other factors loneliness.
influence this relationship; for As expected, the authors that it looked at a snapshot of
range of risk factors that feed people at one point in time. The
into mental health. instance, people who live alone found that the number of
are more likely to be over- people living alone has steadily authors call for longitudinal
In recent years, scientists studies to ascertain how this
have investigated whether liv- weight, smoke, use drugs, and grown. In 1993, 8.8% lived
lack social support. So which of alone. This is compared with relationship might play out
ing alone might be one such over time.
risk factor. these, if any, is the main driver 9.8% in 2000 and 10.7% in 2007.
of CMDs? Their analysis also showed As with any study of this
A new study, the results of nature, assessing cause and
which now appear in the jour- The authors of the new that across all age groups and
study aimed to fill in some of sexes, there was a significant effect is not possible: Did a
nal `PLOS ONE’, takes a fresh person develop a CMD because
look at this question. The study these gaps. They looked for association between living
links between living alone and alone and having a CMD. The they lived alone, or did they
authors conclude that there is a develop a CMD and then
link between living alone and CMDs in general, and they size of this relationship was
investigated which factors fairly similar across the three decide to live alone?
CMDs. They also find that it Or, perhaps, someone with
affects all age groups and sexes, seemed to be influencing the surveys.
relationship. CMDs were more common a predisposition for CMDs
and that primarily, loneliness is is more likely to want to live
the driver. in those living alone than those
Looking at the data not living alone: 1993: 19.9% vs. alone. As ever, scientists will
To investigate, scientists from 13.6%, 2000: 23.2% vs. 15.5%, need to carry out more work to
Living alone fill in the gaps.
The number of people liv- the University of Versailles and 2007: 24.7% vs. 15.4%.
Saint-Quentin-en-Yvelines in Earlier findings back up
ing alone is steadily growing
throughout much of the world; France analyzed data from The trouble with loneliness these results, but the new find-
20,503 adults, ages 16–74, liv- When the scientists delved ings also go a few steps further;
this is due to a number of
ing in England. The data came deeper into the relationship they show that the relationship
reasons, including the aging
from three National Psychiatric between CMDs and living between mental health and liv-
population, people tending to
Morbidity Surveys that experts alone, they found that loneli- ing alone is stable across time,
get married at an older age, and
conducted in 1993, 2000, and ness explained 84% of the that the link is not restricted to
increased divorce rates.
2007. association. Earlier studies older adults, and that loneliness
Researchers have already
Participants completed Clini- had shown that loneliness is plays a pivotal role.
looked at the relationship
between CMDs and living cal Interview Schedule-Revised linked with depression and
questionnaires, which assessed anxiety. Others still had investi- Source: Medical news today
alone, but most have focused
whether they had experienced gated whether loneliness might

34 May. 17 - 23 2019
ART | BOOKS | SOCIETY | TRAVEL | CULTURE

Cliff Kibuuka’s metropolis


Artist shows off his immense love for Kampala

C
By Dominic Muwanguzi and in the morning as the sun rises, offer one can observe abstract human figures in
almost a novel identity to that specific place one of the painting, Docked at Ggaba 2, per-
liff Kibuuka will talk about to the extent that even someone who resides haps to break away from the usual compo-
Kampala City anywhere, any within those neighbourhoods is startled by sition, but also as a symbol of his evolution
time – but not anyhow. He the magical look. as an artist.
loves the city and sees only Unlike in previous work where he The ability to be critically observant is
good even in its bad side. He predominantly painted the rusty and undoubtedly Kibuuka’s forte. He thus
adores its bustle and multi- clustered roofs of Kampala’s shanty paints that personality of Kampala that not
cultures. In his latest solo exhibition My settlements, Kibuuka concentrates on the everyone sees, but is there! For example,
“Metropolis” is dedicated to it. capital’s skyline that he describes as “ com- the fruit stalls figuratively represent Kam-
The paintings are exuberant: washed in pletely unique and keeps on shifting.” This pala as a warm welcoming space because it
a rich dark and bright palette to showcase is evident in all the paintings in the exhibit has enough food for its inhabitants.
the varied character of the city; from order that portray a varied cloud formation at His partner, Camilla, describes the artist
to disorder, rich neighbourhoods sitting very specific time of the day or night. as a very passionate, patriotic, hardworking
next to the shanty settlements, the thriving Such quality appears effortlessly in the and focused individual. She says Kibuuka’s
informal businesses that are fast eclipsing artist’s work, probably inspired by the fact paintings have a particular premonition to
the traditional permanent structures and the that as a passionate landscape artist, he them.
magnificent skyline. submerges himself into the subject matter. “It is as if the thunderstorm is coming,”
Kibuuka’s immense passion is clear as he This is enhanced by the fact that he rarely she says.
depicts the city metaphorically but without employs human figures in his work. Why? `My Metropolis’ is showing now at Umoja
exaggeration and focuses on navigating it “As a landscape painter in its purest form Art gallery, located opposite Kobil Petrol
with his palette to highlight unfamiliar sides I restrict the use of human figures in the Station in Kamwokya. Images courtesy of the
of Kampala. For example, his series of paint- paintings to not take away the attention Artist.
ings on the skyline both under nightfall from the subject,” he explains. Nonetheless,

May. 17 - 23 2019 35
Nairobi governor Nurse crochets tiny crowns for newborns to Harry, Merkel baby
has 1000 land Babies born on May 06, Sussex on the healthy arriv-
titles, 200 cars the same day as Prince Har-
ry and Meghan Merkel’s
al of their first child, a nurse
at California Pacific Medical
Flamboyant Nairobi baby were all princes and Center’s Van Ness Campus
Governor Mike Sonko has hit princesses for the day at a welcomed nine babies that
back at his critics who often hospital in San Francisco. As same day. One crafty nurse,
question how he amassed the world celebrated with June Shiraki, crocheted tiny
wealth saying all the properties the Duke and Duchess of crowns for her patients.
he has acquired were obtained
legally and genuinely. The
county chief said it was
unfair for people to question
David Beckham banned from APP lets you hire
his source of wealth and
associating him with imaginary
driving for using mobile phone someone to protest
illegal business deals without David Beckham has been given a six-month driving ban
understanding where he has for using his mobile phone while behind the wheel. The Wistand, an online platform
come from. Speaking to NTV, former England captain previously pleaded guilty to using allows people to hire proxies
Sonko said he has over 1,000 the device while driving his Bentley in central London on to protest on their behalf any-
title deeds for pieces of land 21 November last year. A court heard he was photographed time, anywhere. All you have
that he acquired genuinely and by a member of the public holding a phone as he drove in to do is go on the Wistand
over 200 vehicles registered “slowly moving” traffic. Beckham, 44, received six points website, start a “cause” or find
under his name. The governor on his licence to add to the six he already had for previous one that you care about, and
44-year old is known for speeding matters. He was also fined £750 (Approx. Shs3.7 then donate a set fee that will
flashing out money to his fans. million), ordered to pay £100 (Approx. Shs490,000) in go toward funding a “messen-
He said his money comes from prosecution costs and a £75 (Approx.Shs370) surcharge fee ger”, a person to attend that
the matatu sector, clubs, music within seven days. The judge acknowledged the slow pace of protest on your behalf. Sorry,
promotion. He has never been the traffic but told him there was “no excuse” under the law. it is only available in France!
charged in any corruption case.

Barcelona team bus leaves Archaeologists find 1,000-year-old cocaine


Lionel Messi at Anfield A new discovery in possibly magic mushrooms.
after Liverpool defeat South America makes
perfectly clear that
Radiocarbon dating
suggested the artifacts were
humans who roamed the around 1,000 years old, and
Barcelona’s team bus did not wait for
continent 1,000 years ago samples from inside the bag
Lionel Messi as it departed Anfield without
had some of the same revealed the presence of a
the Argentine after the Champions League
vices that we do today. cocaine metabolite, traces of
defeat to Liverpool. Messi suffered a misera-
A new research paper DMT, and what appeared
ble night for his club as Liverpool completed
a stunning comeback to knock Barca out published in `Proceedings to be a compound found in
of the Champions of the National Academy a “ritual bundle” which psychedelic mushrooms,
League on May 07. of Sciences’ reveals contained a number of but the researchers couldn’t
Barcelona appeared the discovery of what psychotropic substances, be sure of that last part.
to have a com- archaeologists are calling including cocaine and
manding advan-
tage after securing
a 3-0 win in the Try this crazy `Cockroach Challenge’!
first leg at Camp Nou last week. But Jurgen
Klopp’s side put four past Barca without We’ve seen some crazy internet challeng- began in April when a young man from
reply to book their place in the Champions es go viral in recent years, but this latest one Myanmar posted a photo of himself with a
League final in Madrid on June 1. Messi, takes the cake as the most disgusting of all. large cockroach on his face to his Facebook
meanwhile, was required to undergo a dop- The Cockroach Challenge has people put- account, captioning it “new challenge, Can
ing test immediately after Barca’s crushing ting live cockroaches on their faces, taking a you do this?”. The photo quickly went viral,
defeat at Anfield. And according to El Chir- selfie and sharing it on social media. and at the time of this writing, it has over
inguito, the process took so long that Barca’s It’s hard to say for sure how and when 5,600 reactions and 18,000 shares. People
team bus headed to the airport while Messi the Cockroach Challenge came to be, but started sharing their own selfies with creepy
was still at Anfield. according to several sources, the craziness crawlies on their faces.

36 May. 17 - 23 2019
These car repairs will cost you
But you can avoid them
By motoring Guru springs, dampers, bushes etc. which makes Head Gasket

O
replacement costly. But it is better than wait-
wning a car also brings to re- ing till they fail. Then they will damage the The head gasket is the seal that sits
sponsibilities; maintaining it and steering rack and other parts. between the cylinder head and the cylinders
repairing it. Maintenance is done or engine block and, critically it prevents
when the car is not broken and engine coolant or engine oil leaking into the
repair follows when the car is broken. Gen- cylinders. The head gasket often goes bad
erally, maintenance costs less than repair. because of the engine temperature going
That is why we bring you these tips about high. The engine
some of the most costly repair jobs you gets heated
want to avoid by ensuring that your vehicle because of many
is well maintained. things; bad radia-
tor, no coolant
Cylinders (possibly because
Cylinders are the chamber where the fuel of leak), faulty
is burned and turned into power. Most car fan etc. These
engines have four, six, or eight cylinders. in turn could be
Generally, more cylinders mean more cause by lack of
power. But fewer cylinders mean better fuel basic servicing or maintenance.
economy. A car can’t run without an engine, You should check head gasket if engine
and an engine can’t run properly without becomes overheated or runs rough, vehicle
functioning cylinders. Any type of engine The camshaft lacks power, there is steam or white smoke
damage is expensive to repair, but cylinders from the exhaust etc. This problem can
are the most expensive. The cost goes up Inside a car’s cylinder head; the top part cause other problems, including a lot of
with the power of your engine. So don’t let of the engine is the camshaft. It is long rotat- water getting into the cylinders, ‘hydraulic
you bad luck, bad driving or bad mainte- ing rod called a shaft that supports several lock’, and complete engine failure. The head
nance habits damage your cylinders. oval-shaped parts called cams. Below the gasket itself is not costly. It is the mechan-
camshaft is the row of air intake valves ics who charge more because they have to
which control how the engine takes in air. dismantle the top of the engine; the cylinder
The air is important because that is how the head. To be done well, the must do valve
vehicle burns fuel to convert it into energy. reconditioning, timing chain replacement,
Because the cams are oval-shaped; meaning water pump service, or intake and exhaust
that as they rotate they push the valves to gaskets.
open and close. Over time, a car’s camshaft
collects debris and dirt. But it is a very
solid part and should never fail if engine is
well maintained. But lack of regular engine
changes and valve cleaning leads to clog-
ging and eventual breakdown. Getting a
camshaft replacement is expensive even
before you add labour costs and add-ons.
The Suspension
Your car’s suspension system; the shock
absorbers, control arms, springs, and tie
rods perhaps take the biggest beating of any Engine block
part on our rough, potholed, and dirt roads. A blown engine is about the worst news
Whenever, you hit unexpected road bumps, that your average car owner is likely to
abandoned stones and more on the road, receive. Normal engine issues are the most
these parts suffer. Fortunately you can do common car problem reported to mechan-
regular maintenance of parts of the suspen- ics. But a ‘blown motor’ means the engine
sion instead of waiting to do a major repair has suffered so much internal damage that
job. Unfortunately mechanics usually insist it needs extensive repair or a full replace-
on replacing whole components. Shock ment. That can be quite costly.
absorbers, for example, consist of struts, coil

May. 17 - 23 2019 37
Barbara Katende Kivumbi On a practical
approach to personal financial freedom
‘We lose sight over the fact that genuine wealth
is achieved over time after taking steps’
‘Rich Dad, Poor Dad.’ And being a provided with information ahead of
By Agnes E Nantaba transformational speaker and coach, time.

B
Katende would share a lot on personal “Our elder siblings passed on the
arbara Katende Kivumbi is financial management among the information through coaching,” she
a lecturer, personal finance many areas. And to her surprise, the says.
coach, transformational audience would request for copies of But they were also provided with
speaker and author of ‘Money her presentations most of which were lots of reading materials something
Cure.’ But her favorite reference is only bullet points. And these wouldn’t that instilled a reading culture and laid
‘mother of twins.’ help much. Initially ‘Money Cure’ was a foundation for Katende’s acumen to
Katende’s passion lies largely in in English only but she has translated write ‘Money Cure.’
helping people become financially it to Luganda and is working on a Her father kept raising the bar
empowered through personal financial simplified version for Teens and Kids. higher and every time there would be
management and that is what she Katende comes from a family something to achieve.
strives to achieve in her book. In the of lawyers and says excelling in Katende went to Gayaza High School
book, Katende teaches the practical academics was not a subject of for both Ordinary and Advanced
way to save, invest and accumulate discussion. And that laid a foundation Levels before joining Makerere
genuine wealth. for all that she has been trying to University for her first degree in Mass
Katende says, “We lose sight over achieve. In a way of encouraging them Communication graduating in 1994.
the fact that genuine wealth is achieved to excel through extra effort, She has a Master’s degree from the
over time after taking steps.” Katende’s father John W. University of West Georgia.
The long term goal of saving and Katende often ensured In her pursuit to get
investment, according to Katende, is that she and her everyone started on
to prepare for retirement. And that siblings were the path for financial
is what she addresses in the first independence,
chapter. She maintains that preparing Katende says,
for retirement should be at the back of “I would love
every individual as they start out on people to say
their career journey. that I tried
“If you don’t start saving the little my best and
money now, it will be very difficult to ran my
manage retirement,” she says. race.”
In the subsequent chapters, Katende
discusses the futility of banking on
chance, the immense power of idea,
the process of wealth creation through
stewardship, resourcefulness and the
significance of small but consistent
choices among other principles
that should be applied towards the
attainment of personal financial
freedom. With a wealth of experience
in financial services, Katende says
financial literacy is needed to make
empowered and profitable decisions.
Katende says, “The lessons are
simple, priceless and timeless.”
She says Ugandans have a
low saving culture because
many people seek instant
gratification.
Writing the book was
Katende’s own simple
quest after reading

38 May. 17 - 23 2019
news analysis
Q&A

Barbara Katende’s Liteside


the wrong place. because we change people with
Any three things that we don’t What is the greatest thing you words.

I
know about you? have ever done? What is the quality you most
am passionate, driven and I I have not yet done it. Like like in a woman? What do you most value in
believe life is short so I enjoy Michelle Obama, I am still Honesty and integrity. your friends?
it. We can budget for the becoming. Looking at the past Authenticity and consistency.
good life; including person- makes one complacent and What is the quality you most
al shopping and gifting. Every gives a false sense of achieve- like in a man? Who are your favorite writers?
time I get my money, I spend ment. My greatest achievement Honesty and integrity. Sydney Sheldon, Jeffery
on myself and it gives me the is yet to come. Howard Archer and Barbara
energy to work more. What or who is the greatest Taylor Bradford. I love to read
What is your current state of love of your life? books about humble begin-
What is your idea of perfect mind? I love my family. nings. I also love to read biogra-
happiness? I am excited especially about phies because it opens a whole
Being in a garden or a room my book ‘Money Cure’ which When and where were you world and draws me closer to
full of flowers; I love flowers; has now been translated into happiest? such people.
especially roses. The scent and Luganda to reach yet another My first graduation was Which historical figure do
look of roses makes me happy. audience. a turning point, birth of my you most identify with?
To me it’s seventh heaven. children and every time I am in I am inspired by Queens Vic-
What do you consider the most a place where there are flowers, toria and Elizabeth I. I also like
What is your greatest fear? overrated virtue? it is seventh heaven. William Shakespeare. Their sto-
The unknown; I would love Success; when someone is ries are so fascinating. I respect
to be in the know. Uncertainty successful, we put them on a Which talent would you most people who have given back to
makes me uncomfortable. pedestal forgetting that it didn’t like to have? society like the late American
happen in a blink of an eye or I wish I could be a landscape Senator J. William Fulbright. I
What is the trait you most de- overnight. We tend to focus a artist. I respect talented people respect Robert Toru Kiyosaki
plore in yourself? lot on success forgetting that in the arts and greatly admire (of `Rich Dad Poor Dad’) for
I am an introvert and very we also learn a lot from failure. their work. opening up the financial person
private so I never like talking Failure is not when we fall but to the ordinary person. He got
about myself. when we fail to rise again. a very big backlash from many
Where would you most like
people and his company ran
to live?
bankrupt but he worked to
What is the trait you most de- What does being powerful I can never work or live
make life better for others.
plore in others? mean to you? outside Uganda. I have had the
Lack of integrity. I believe Power is related to influence opportunity to experience life What are your favorite names?
that we have been given so and being able to bring about elsewhere, and that opened my Barbara of course; to date
much and so let us have integ- change. With power, you can eyes to the beauty of Uganda I have named 12 children
rity. lay a foundation for what will and the good people. We are Barbara. If you call me asking to
Which living person do you happen next. friendly and hospitable. suggest a name for your daugh-
most admire? ter, it will be Barbara.
I love Michelle Obama. Even On what occasion do you lie? What is your most treasured
with the great heights she has We all tell lies; for instance possession? What is your greatest regret?
reached, Michelle maintains I would tell lies to save my My faith is intangible but Life is full of regrets but the
that she is still becoming. I have family. has got me through the highs tough and challenging situ-
learnt from her that each day and lows of life. I would never ations have been the areas of
is one to discover. I admire What do you most dislike exchange it for anything in this growth. I also don’t want to live
Donald Trump for his ability to about your appearance? world. a life full of regrets. Looking
manage real estate because real So many things; It’s hard back today, those were mo-
estate is the bedrock of financial to choose one. However God What do you regard as the ments of growth that helped
management. I also admire doesn’t make mistakes and lowest depth of misery? me develop resilience
my father for raising us to be he purposely made each of us Death of a parent at a very
independent. unique and different. young age is so traumatizing How would you like to die?
What is your greatest extrava- and the trauma keeps coming God knows best. My consola-
gance? Which living person do you back for many reasons. tion would be that my last day
I love books and movies. I most despise? on earth would be my first day
have a library at home filled I don’t despise people What is your favorite occupa- in heaven. You can’t beat that.
with shelves of books. But with because I believe that we can all tion?
the coming of audio books, I do better and we have different I wear different hearts at What is your motto?
do more audio. I am a lifelong callings. The difference is that different points of the day. ‘Going for the gold’ ‘Making
learner so I read everything. some people haven’t yet found I am happy being a mother a difference’ and ‘Joyously win-
their calling and are therefore in and transformational speaker ning God’s way.’

May. 17 - 23 2019 39
Global comment
By Hassan Hakimian
Fallacies of economic sanctions
Arguments used to justify them taint our
understanding of their rationale and effectiveness

T
he sanctions imposed on Iran by prehensive study of 170 twentieth-century nuclear deal last May, coupled with the
US President Donald Trump have cases in which sanctions were imposed con- imposition of a new round of sanctions, has
begun to bite the country’s economy cluded that only one-third of them attained emboldened Iran’s hardliners, who now
hard. Inflation, seemingly defeated their stated objectives. Another study esti- claim that their distrust of the U.S. was justi-
by President Hassan Rouhani, has returned mates the success rate of sanctions regimes fied and are pushing back against Rouhani’s
with a vengeance, hitting 31% in 2018. Ac- to be lower than 5%. centrist administration. Similarly, sanctions
cording to the International Monetary Fund, Such a high failure rate suggests that against Saddam Hussein’s Iraq in the 1990s
the economy is poised to shrink by 6% this governments often use flawed arguments led to the wholesale destruction of civil
year, and inflation could reach 37%. Many to justify imposing sanctions, tainting our society there, helping to stoke the identity
industries are experiencing severe dif- understanding of their rationale and effec- politics and sectarianism that continue to
ficulties, and unemployment is mounting. tiveness. Seven misconceptions or fallacies bedevil that country and the wider region.
Aiming to cut Iranian oil exports to zero, stand out. Each needs to be debunked. A fifth claim is that sanctions are neces-
Trump is threatening to sanction countries – First, sanctions are justified as a gentler sary and effective in bringing about regime
like China, India, and Japan – that continue and more humane alternative to war. But change. The cases of South Africa and Zim-
to buy Iranian oil. this underestimates the potential for inter- babwe notwithstanding, this is probably
Given the pain that Trump’s unilateral national diplomacy to resolve conflicts. And the weakest of the seven arguments – as the
sanctions are causing Iran, are they really in reality, sanctions often pave the way for longevity of sanctioned regimes in countries
the “silver bullet” policy that his adminis- wars rather than averting them: 13 years of such as North Korea, Cuba, and Myanmar
tration hopes they will be? international sanctions against Iraq were indicate. Even the blockade imposed on
Since World War I, governments have followed by the 2003 US-led invasion, for Qatar by Saudi Arabia, UAE, Bahrain,
increasingly used economic sanctions to example. and Egypt since June 2017 has boosted the
achieve their international political objec- A second argument is that “if sanctions emir’s popularity and led a significant part
tives. Despite a century of experience, are hurting, they must be working.” But this of the population to rally behind him.
however, the rationale for such measures criterion of effectiveness fails to define what Sixth, sanctions are said to weaken the tar-
remains far from compelling. would constitute success. Worse, it flies in geted governments. But by worsening the
Economic sanctions have become even the face of evidence suggesting that – even business and investment climate, economic
more popular in recent decades. In the when essentials such as food and medicine sanctions take their toll primarily on the
1990s, for example, sanctions regimes were are excluded – sanctions hurt large swaths private sector. If anything, power becomes
introduced at an average rate of about seven of the civilian population. They stymie eco- more centralised and concentrated as gov-
per year. Of the 67 cases in that decade, two- nomic growth, undermine production, and ernments increasingly control supplies of
thirds were unilateral sanctions imposed cause businesses to fail, resulting in higher strategic commodities given the shortages
by the United States. During Bill Clinton’s unemployment. Sanctions can also fuel they cause.
presidency, it is estimated that around 40% inflation by restricting imports and fueling Finally, sanctions are supposedly effective
of the world’s population, or 2.3 billion currency crises. in containing nuclear proliferation. Here,
people, were subject to some form of U.S. Third, sanctions are often said to be too, their record is demonstrably poor. Since
sanctions. In fact, the great majority of sanc- “smart” and “targeted.” In practice, how- the Non-Proliferation Treaty entered into
tions are imposed by large countries against ever, comprehensive economic sanctions force in 1970, four countries have acquired
small countries. Currently, the U.S. has are collective punishment. They squeeze nuclear weapons: Israel, India, Pakistan, and
nearly 8,000 sanctions in place worldwide, the middle classes and impose a dispro- North Korea. Three of them did so while
with Iran by far the largest state target. portionate burden on the poorest and most under sanctions.
In addition, since the 1960s, the United vulnerable, who are arguably the biggest Ultimately, the success or failure of eco-
Nations Security Council has established victims of the very regimes that sanctions nomic sanctions is judged by whether they
30 multilateral sanctions regimes under are designed to punish. bring about regime change or change a gov-
Article 41 of the UN Charter. The most suc- Fourth, some governments justify sanc- ernment’s behavior. Given the prevailing
cessful of these arguably played a key role tions as a way to uphold and promote misconceptions about their rationale, it is
in ending the apartheid regimes in South human rights. But evidence suggests that not surprising – as we are likely to see again
Africa and Southern Rhodesia (today’s civil-society entities and NGOs are gener- in Iran – that they so often achieve neither
Zimbabwe). In addition to targeting specific ally among the biggest losers under sanc- goal. What is more certain is that destabi-
countries, the UN has also imposed sanc- tions. By portraying sanctions as foreign lising Iran will make the region more dan-
tions on non-state entities such as al-Qaeda, aggression and economic warfare against gerous than ever.
the Taliban, and, more recently, the so- their country, authoritarian regimes often Hassan Hakimian, Director of the London
called Islamic State (ISIS). accuse human-rights activists of being allied Middle East Institute and Reader in Economics
But it remains highly doubtful that Iran with the enemy. From there, it’s a short step at SOAS, University of London, is a co-editor of
will change its policies, let alone its regime, to a national-security crackdown on such Iran and the Global Economy: Petro Populism,
in the face of Trump’s sanctions. The simple organisations. Islam and Economic Sanctions.
truth about economic sanctions is that, Iran is following that pattern. Trump’s
though widely used, they often fail. A com- withdrawal of the U.S. from the 2015 Iran Copyright: Project Syndicate, 2019.

40 May. 17 - 23 2019
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