February 2021 – Prime Time Communications

News

Ministers urge private sector to invest in making parts for the automotive industry

By Sierra Ruth Arinaitwe Kiira Motors Corporation, a government of Uganda and Makerere University initiative has taken concrete steps in the development of an indigenous motor vehicle industry with the near completion of the Kiira Vehicle Plant in Jinja. The Minister of Science, Technology and Innovation, Dr Elioda Tumwesigye, hailed the progress Kiira Motors has made so far saying it will provide an unprecedented opportunity for promoting value addition to Uganda’s minerals and other natural resources with the view of import substitution and export promotion of vehicles, parts, components and systems as well as automotive engineering services. “Import substitution is something we need to work on. Uganda motor vehicles are the second leading valued import with over USD 450 Million annually after petroleum at USD 1.3 Billion. Imagine if we made these vehicles here?” Dr. Tumwesigye noted. Dr Tumwesigye made the remarks while opening a multi-sector meeting on building of an indigenous motor vehicle industry at Kiira Motors’ vehicle plant construction site in Jinja. The meeting was presided over by Joy Kabatsi, the State Minister for Transport who represented her boss, Minister of Works and Transport, Gen Edward Katumba Wamala. Prof Nawangwe, the Makerere University Vice Chancellor and Edward Hightower, a global automotive engineer and executive also attended the meeting. Dr Tumwesigye explained that with the market for vehicles growing at 12% year to year and estimated to reach over 630,000 vehicles sold in the East African Community annually, it is of paramount importance that Uganda puts in place the relevant policy interventions for promoting automotive local content participation while placing emphasis of enhance environmental stewardship. “Invest in the automobile industry. Form companies that make parts, we can make these parts from our raw materials so that 70% of vehicle parts are done by independent suppliers. If you don’t invest, we will get the parts from elsewhere,” he advised. The minister further added that strategic government investment in the Kiira Vehicle Plant is expected to create over 14,000 jobs directly and indirectly; catalyze upstream investment in the manufacture of auto-parts from bamboo, steel, banana fiber, etc.; while affirming Uganda’s commitment to enhancement of local content participation as an enabler for industrialization along with enhanced environmental stewardship. On her part, Minister Kabatsi said that Uganda believes that the automotive industry is a catalyst for industrial development. “The government will continue to support your efforts to create an indigenous automotive industry. I will continue to support your development,” she pledged. She too urged the private sector to get involved in the local content value chain by making parts.

February 23, 2021

News

Greenhill Academy Kibuli Hosts 1st Virtual Candidates’ Dedication Service

From creating a partnership with GS Virtual Learning to keep students engaged online while schools were closed due to the COVID-19 pandemic, to organizing various online meetings and webinars to keep parents engaged, Greenhill Schools is no doubt one of the institutions that has embraced technology and managed to successfully maneuver the effects of the COVID-19 pandemic. The school’s creativity and adaptation to technology was further showcased during its first Virtual Candidates’ dedication service held on Sunday 14th February 2019 that saw various students and parents logging in to Zoom, Facebook, Twitter, YouTube and BBS Telefayina to view the well organized event. The Dedication Service which was streamed live at the school’s campus in Kibuli was presided over by Venerable Rev. Canon Fredrick Baalwa who was the main celebrant. Based on the theme; Trusting God Completely (Psalm 37:4-6), Venerable Rev. Canon Fredrick Baalwa urged the congregation especially the candidates to trust God despite the various challenges the COVID-19 pandemic may have brought their way. The lively service was led by the school’s staff choir; fluent Bible readings from Hordray Kansiime Tumuheki (P.7), Martin Kugonza (S.4) and Kobusingye Desiree (S.6). Tongun Emmanuel (S.6), Acen Manuella (S.4), Hanasaye Hannah (P.7) and Mark Kasana (P.7) all delivered memorable speeches on behalf of the candidates highlighting that although this was a different kind of year for them they are determined to perform excellently. The service was concluded by a speech from the Rector of the school Mrs. J.V Maraka who thanked the parents and staff for supporting the candidates and highlighted that the COVID-19 pandemic has challenged the school to adapt to technology which included having a different kind of dedication service this year. The rector continued to encourage the congregation to maintain standard procedures as COVID-19 is still very much with us. This 1st Virtual Dedication Service attracted not just the Greenhill Schools’ audience but beyond on the different media it was streamed.

February 17, 2021

News

Kiira Motors Set to Produce 1,000 Buses in Uganda

Kiira Motors Corporation is working with reputable strategic partners to produce 30,000 Buses for the regional market, with 65% parts and components localized by 2030. This builds on the successful development of the Kayoola Electric and Diesel Buses built through technology transfer and utilizing the facilities and resources at the UPDF National Enterprise Corporation Luweero Industries in Nakasongola. Kiira Motors and the partners plan to produce and deploy 1,030 Buses by end of 2021, 50 of which will be electric. The initiative is aimed at modernizing public transport in the urban centers in Uganda and beyond, while building the indigenous motor vehicle industry through technology transfer and localization of auto parts manufacturing. Kampala and other Cities in the region have for decades faced challenges of road and traffic congestion, pollution, unemployment and under employment resulting into low fuel economy, poor air quality, low labour productivity, and compromised road safety. This calls for establishment of a robust integrated and inclusive mass transport system based on environmentally friendly transport solutions. Coupled with localization of capabilities to develop, make and sell vehicles and components, this provides an unprecedented opportunity for transforming the economy drawing on the demographic dividend of Uganda. The establishment of Mass Transit Bus Systems supported by the domestic manufacturing of buses and components for the regional market is consistent with Uganda’s aspirations and pathways to Vision 2040 outlined in the National Development Plan III and the NRM Manifesto 2021 – 2026. Specifically, (1) promotion of local manufacturing of motor vehicles; (2) establishment of an efficient, integrated, sustainable, safe and inclusive public transport system; and (3) promotion of environmentally friendly transport solutions. The above developments are projected to create over 30,000 jobs directly, 100,000 job indirectly, and catalyze investments by Micro Small and Medium Enterprise in the manufacture of motor vehicle parts. The strategic and long-term focus on electric buses for the cities further demonstrates Uganda’s commitment to enhance environmental stewardship.

February 15, 2021

News

#OutToLunch Any lessons from pine, vanilla and ginger growers for Hass Avocado farmers?

By Denis Jjuuko In the 1990s, there was a craze that took the country by storm. Everyone was going to become rich, extremely rich. All that one needed to do was to plant vanilla. People who longed to become billionaires cut down coffee trees, banana plantations, and put every effort in growing vanilla. The price was so high that vanilla crops are said to have been guarded by people with guns day and night. There were no taking chances. Of course, a few people became wealthy from vanilla before the price stabilized. The main reason for the price increment of vanilla was a result of a harsh weather event in Madagascar, the world’s leading exporter. When Madagascar was able to produce again in the numbers they do, the price stabilized. Even though vanilla’s price is still high compared to many other crops in Uganda, it also needs a lot of care that the get-rich-quick farmers are not ready to do. Frustrated and looking for the next big thing, something else would soon catch their attention. This time it was moringa, a tree said to have hundreds of health benefits. If you planted a few moringa trees, you would kiss poverty goodbye for life. Your grandchildren’s future would be secured, for real. Those who planted the tree were soon looking for buyers and they were not coming in the numbers expected. Some cut down the trees for firewood, thereby turning their dreams into ash. Another tree was to be introduced soon. One acre of pine trees would make one a billionaire. It is the world’s most wanted tree needed to make wood and its byproducts, we were told. Forestry authorities dished out land to those who didn’t even want. You earned everyone’s ear if you mentioned that you owned a few acres of pine trees. Lifetime savings and benefits for retirement were withdrawn and all invested in pine trees in preparation for living the life of billionaires. Others tendered in their papers for early retirement. Why suffer so much when you can plant a few trees and die rich? Soon the price of pine dropped. Supply exceeded demand. Like vanilla, pine is tedious to grow. It also takes a lot of time maturing at around 15 years (depending on species). Many of the retirees died before they became rich. Today, there aren’t many people talking about pine anymore. Owning them doesn’t raise eyebrows to most people. Less than five years ago, we were told that you would make unbelievable money if you grow just one acre of ginger. Last week, ginger farmers in Gomba, the media reported, told one of the presidential candidates that they will only vote in a candidate who promises better prices. A bag (100kg) of ginger fell from Shs800,000 to around Shs150,000. Although ginger intake has increased during this COVID-19 period, the prices have not gone up for the farmers. Today, you have probably received an email about Hass Avocado. “Hass Avocados mature after two years and a single tree can produce 3,000 fruits (500kgs). An acre requires 166 trees, which comes to 450,000 fruits. A fruit is sold at Shs550 which means that you will make Shs1,650,000 per a year per a tree. With just an acre, you will make Shs273.9m a year,” the emails and flyers read. The cost of planting an acre to earn all this money is very minimal, they tell us. Now, many people are growing Hass Avocado in preparation of making Shs273.9m a year per acre or even double if you do the export yourself according to the promoters who are mainly seedling sellers. If you want to be respected among your peers, mention the number of Hass Avocado you own and roll out the above figures. But have we as a country learnt anything from vanilla, moringa, ginger, and pine? Have we created a value chain for Hass Avocado? What will happen when the fruits mature and a lockdown happens and nobody can export? How do we minimize post-harvest losses which are one of the challenges we face in agriculture in Africa? There is a need to invest in value addition for Hass Avocado and its value chain so that people don’t make losses when five years from today, there will be more fruits on the market than people who need them. We can make healthier edible oil from it, juice, and even snacks, among others. The writer is a communication and visibility consultant. djjuuko@gmail.com

February 12, 2021

News

#OutToLunch The government should dispense with pride and fully open the internet

By Denis Jjuuko Rachael and her husband live somewhere in New York where she works as a nurse. Before the COVID-19 pandemic disrupted the world, she used to come to Kampala at least once a year to check on her relatives and projects. Whenever she was in Kampala, she used to stay in hotels. After some time, she got tired of living in hotels with her young kids. She decided to build a block of six apartments on the land she had earlier acquired in Najjeera. When the apartments are done, her plan is to rent out five of them and keep the sixth for herself whenever she is around. Late last year, Rachael contracted Ibra, a skilled builder to start construction. Ibra and Rachael worked out a plan where he is paid per phase. Every day, Ibra calls Rachael on WhatsApp and updates her on the progress made. Using WhatsApp’s video call feature, Rachael sees what is happening at her site in real-time, makes inquiries on issues that may not be clear and approves changes, if any. This arrangement has been perfect for Rachael as well as for Ibra. On the site at any one time, about 30 young men and a few women earn money every day. The building material hardware owner has been very happy as the site’s progress means that his business has been growing. National Water has been collecting payments for the water used. The truck driver has been delighted supplying sand, bricks, and coarse aggregate, among other materials. Sarah, a widow and neighbour to Rachel over the last few months has been feeding the 30 young men and women with porridge in the morning and posho and beans mainly for lunch. She had never seen this windfall in a while. She has been walking with a smile of recent. However, Rachael has temporarily stopped the construction of the apartments. She is not sure what is going on at the site. She has failed to get the latest update on the site as Ibra cannot send images and videos to her. The internet has been off in Uganda for days. When it was restored, the government kept social media blocked. Rachael had wanted Ibra to download the Zoom app, which didn’t work as app stores are also blocked. Ibra is a skilled builder with many years of experience. However, the internet is not his thing. He reluctantly joined WhatsApp after he felt irritated by his children and now, clients like Rachael. Until Racheal can be sure of uninterrupted communication with Ibra, there won’t be money being sent. She wants to be sure she can do spot checks at any time of the day. She wants to be involved in every stage. Racheal’s forced decision to halt her apartments’ construction means that 30 young men and women are idle, without any work. Sarah has lost her business. The smile is gone. The truck guy is now stuck with his sand. The hardware owner’s stock isn’t moving at the speed it was. The mobile money agent where Ibra withdraws money has lost some income. Ibra is stuck too, looking for other sites. The sad thing is that Ibra isn’t Ibra and Sarah aren’t the only people stuck. Many people are. A woman who works in Owino and has been selling her second hand clothing using social media can’t do much anymore. She has no easy way to reach her customers. Traditional media is out of reach for her. Social media had eased her way of doing business. Now it is off. Apparently, the government is unhappy that a few of its fake accounts were deleted by Facebook and Twitter, at least according to the foreign affairs minister. However, the government’s decision to shut down the internet and social media is affecting it as well. The Uganda Revenue Authority is missing OTT tax targets and businesses failed to file their returns on time as well as sending out invoices. The telecom companies are missing money in terms of data and levies on mobile money transactions. The internet today has become as important as food, shelter and clothing. It is the way of life of many people. It is the way through which government, businesses, individuals, and large organisations do business. Due to COVID-19, businesses are struggling to stay afloat and the last thing they need is the internet and social media being off. The government should dispense with its pride and restore the internet fully so that Ibra and Sarah and the hundreds of people who were benefiting from Rachael’s construction site can work again. The writer is a communication and visibility consultant. djjuuko@gmail.com

February 12, 2021

News

#OutToLunch Amazon and the culture of succession planning

By Denis Jjuuko Jeff Bezos, founder of the global unicorn that is Amazon, stepped down from the role of Chief Executive Officer to become executive chairman. Bezos founded Amazon in 1994 and built it into one of the biggest and most profitable companies in the world. After 27 years at the helm and USD200 billion letter in personal wealth, he decided to call it quits. He says he doesn’t have the time he needs to run this giant as he wants to concentrate on other interests, including charity. In doing so, Bezos is walking in the shoes of fellow billionaires such as Bill Gates who left the companies they founded in their prime to do something else. Bezos is just 57 years old. He could have stayed on for another 30 years but that is what we need to learn from these entrepreneurs. Like Bill Gates before him, Bezos will soon leave the role of executive chairman. He just took it up to ensure the Amazon stock doesn’t take a considerable beating, if he had decided to leave the company at once. It is part of transition planning. The main reasons these billionaires leave their legacy companies is not because they don’t have time or the drive to carry on. That is usually for public relations. The founders go because they want to create a culture of succession from one chief executive to another and see their businesses live on forever. The Americans and Europeans usually hand over the businesses to leaders who aren’t necessarily their relatives while the Asians mainly hand over to their offspring. For us in Uganda, we rarely want to hand over the business to anyone. Although we prefer the Asian model of handing over the company to the offspring, many do so without proper succession planning. A parent dies and a child who was not involved in the business at all and who has no experience running anything finds himself in the swivel chair as CEO and Chairman. That perhaps explains why companies that were household names just 25 years ago are now as quiet as a cemetery. The children who inherited them run them down as fast as they got them. Not because they necessarily wanted to but because they were not prepared to run the businesses in the first place. Instead of paying creditors, they buy a fancy SUV and install blue and red grill flashing lights to announce their arrival as the next big thing. The creditors take them to court and the next time you hear about them is when company assets are being sold on the cheap through auctions. Of course, not all Ugandan businesses have ended up that way. The Mulwana Group still stands successful many years after its founder’s death and the children and their mother seem to be doing a great job. The Madhavanis have been fine though last year there were some squabbles in the press over some assets. Succession planning shouldn’t be only for big companies. How do we ensure that small and medium enterprises can survive beyond their founders? The founders need to let go of many things including decision making to people they can groom and trust well in time. The guy who is replacing Bezos at Amazon had been at the firm since 1997, which makes him understand the business. He wasn’t simply parachuted into the CEO role. He had been running Amazon Web Services, the company’s cloud computing arm, which is one of Amazon’s most profitable divisions. Amazon as successful as it is, its founder could easily have claimed that he is the only one who understands its problems and challenges and therefore should be its CEO for eternity but he didn’t. He understood that his legacy, his company’s success will be determined long after he has stepped down. Given Amazon’s success, nobody was itching for him to leave but he decided that after almost three decades, the business needed new leadership. That is leadership. If we want our businesses to become as successful or even a quarter as successful as the Amazons and Microsofts of this world, the leaders must adequately plan for the day they won’t be there to run them. This should be done by identifying and grooming leaders and then stepping away when they can still offer advice to the new leaders. The writer is a communication and visibility consultant. djjuuko@gmail.com

February 11, 2021

News

#OutToLunch Make MPs’ cars here to create a real manufacturing sector

By Denis Jjuuko One of the perks of winning an election for a Member of Parliament in Uganda is the amount of money deposited into their bank account before even work starts. To now fit into the honourable position of MP, the government gives them cash for a brand new car to facilitate their movement within the constituency and comfortably travel to Kampala, the seat of the national legislature. Because everything takes place in Kampala and some constituencies are incredibly remote, there shouldn’t be qualms with MPs get facilitated with a car that befits their status. After all, many people who don’t debate issues for the country get vehicles as well. The Minister of Finance has announced that he is looking for a whopping Shs165 billion (approximately USD44.9 million) for this. Media houses made simple calculations to mean that each MP will be receiving Shs320 million (app USD87,000). That is enough money for a brand new SUV although most MPs buy 16-year-old cars at a fraction of the money they receive. Many don’t even bother to buy a vehicle preferring to use public means between Kampala and their constituencies to save. One of the challenges the country is facing is youth unemployment. Uganda has one of the fastest-growing populations globally, with many people joining the labour market every year and unable to find work. The newly elected MPs know this very well because many campaigned on the platform of development, which in my understanding should mean creating jobs. They also saw first hand how poverty is ravaging the country as they moved from one village to another looking for votes. Many MPs will be receiving daily phone calls from constituents asking them to help connect their unemployed graduate children to jobs. Others will simply ask them to give them money. One of the newly elected MPs was seen with a 40-foot container during campaigns distributing knickers and sanitary pads. And this was in an area many people consider to be well off. If people don’t have one US dollar to buy a pack of sanitary pads (reusable ones are much cheaper), what else can’t they buy? Yet the Shs165 billion can create millions of jobs in the long run. Vehicles are the second-highest value imported goods after petroleum products in Uganda. They come in as fully built units (FBUs). This means that Uganda loses millions of dollars in foreign exchange each year importing vehicles. What about the government asking Original Equipment Manufacturers (OEMs) to make MPs’ cars here? The government would place an advert asking for somebody to supply SUVs to Uganda MPs with the condition that the vehicles would be made in the country. The winning OEM would bring in the car as either semi knockdown kits (SKDs) or completely knockdown kits (CKDs) and get a place to put the cars together. The government’s own Kiira Motors is nearing the completion of a vehicle plant in Jinja. The winning OEM could make the car from there. This would directly create many jobs by people making cars for the MPs, but most importantly, the country would create a significant mass of people with skills to make a car. Entrepreneurs would identify parts that they could easily make so that the OEMs don’t necessarily import everything. Plastic companies like Mukwano Group and Mulwana Group would easily make plastic parts. Steel companies would learn how to make the chassis. A car has on average 30,000 parts which are mainly supplied to OEMs by small independent suppliers. Within a few years, Uganda would develop an automotive industry that supplies parts to the global value chain on top of making cars here. We have most of the raw materials here. The government of Uganda, on average, buys approximately 2,000 vehicles every year. The private and development sectors buy more others. Imagine if they were made here. The UPDF makes some of its armed personnel carriers (APCs) here in Uganda. So if the army can make some of its vehicles here, why can’t we make cars for MPs and other institutions? The OEMs will partner with local entrepreneurs to develop our capacity same way Suzuki partnered with Maruti to create the iconic award-winning Maruti Suzuki in India. For the industry to kick off, this would also call for banning the importation of these old cars that are destroying our environment. Because there are many parts in a car, the parts suppliers that will set up here will make other things. Once a country can make a car, it can make anything. Make MPs cars here, and you would have a real manufacturing sector making all sorts of products in a few years. The writer is a communication and visibility consultant. djjuuko@gmail.com

February 11, 2021