#OutToLunch Wood to power solutions could reduce household poverty

By Denis Jjuuko

A head of the household returned home after a long day of trying to fend for the family. Previously, he had bought some dry rations to take through the family during the lockdown. He was warmly welcomed back by the people he had left at home, helping him to settle in so they could serve him some tea and some food later.

Upon entering the kitchen, he saw a saucepan on the electric cooker and as he passed by, he realized the people he had left at home were cooking dry beans. He screamed his lungs out — how could you cook beans using electricity? “Do you want me dead?” he further screamed. This message was contained in a viral meme that has been circulating in the last few days.

If you carried out a living standards survey in Uganda, you will realize that they aren’t many households with electric cookers. Those who have such gadgets are supposed to be middle or upper class or high-income earners. Electricity is considered expensive to use for cooking stuff that don’t even need as much energy as dry beans.

In many households that have electric cookers, the purpose for them is to quickly make an egg omelette, warm milk for kids before they run to school and such other light meals.

Cooking meals for the entire households is usually done using charcoal and/or firewood especially by those families that don’t put their hands in the public till. It is considered less expensive to use charcoal and firewood than electricity. In some households, electricity is only for lighting, charging phones, and watching TV once in a blue moon. This has made wood the biggest source of energy in Uganda leading to the depletion of our natural forests and significantly contributing to climate change.

Uganda’s installed generation capacity is 1,268.9Megwatts as of June 2021 which is largely clean energy from hydro plants. With Karuma and other small hydro plants under construction such as Nyamagasani 1 and Achwa 1 coming online in mid 2022, the installed capacity will increase to 1,900MW. However, the transmission is still low at 3,100.5km as of June 2021, which limits supply to especially rural areas.

However, for those who are already connected to the grid, affordability is a key issue which makes old men cry when they return home and electricity is being used to cook dry beans instead of frying eggs and warming milk for kids.

Yet there is a cost beyond climate change to households that depend entirely on biomass energy sources such as wood. Smoke from charcoal and firewood is said to cause non communicable diseases like cancer, which kill many people every year. Chronic diseases like cancers are also key contributors to household poverty as they are costly to treat. When a member of a household in Uganda is sick, there are several other people who devote all their time to looking after the person instead of working. Money that would have enabled kids to go to school is instead used for treating the sick. For cancers, even household properties such as land is sold in a bid to save a life, which further denies the affected household income thereby sinking it into abject poverty.

Electricity is capital intensive and for the private sector that is involved, there must be a return on investment for them. However, the government of Uganda must always support the Ministry of Energy and Mineral Development to push for wood to power initiatives so people can use less biomass energy. The ministry through the Electricity Regulatory Authority recently reduced the power tariffs but more must be done so that households can use electricity for cooking beans and ironing.

If more people are connected to electricity and use it for cooking and ironing, the cost of distributing that power will be less. Numbers significantly reduced the cost of telephony; they can do the same for electricity. Also, there won’t be power generated and not used, a factor that somewhat makes electricity expensive.

Promotion of renewable energy such as solar heaters, biogas technologies, and power saving systems such as automated security lights for homes and businesses could be a solution. Households must also learn to carry out regular power audits so that they understand what consumes their electricity to reduce on the bill or turn that energy into cooking and ironing instead of having a heart attack when dry beans and cow hooves are cooked using electricity.

The writer is a communication and visibility consultant. djjuuko@gmail.com

Tags: Denis Jjuuko, Electricity connections in Uganda, Ministry of Energy and Mineral development Ugand, Out to Lunch, Wood to Power Initiative

Out to Lunch

#OutToLunch: What employees should know before launching a side hustle

By Denis Jjuuko On Friday 29 August this year, I was invited to speak to the staff of Uganda Registration Services Bureau (URSB) about side hustles for corporates during their end of month Fireplace session. The Fireplace is an internal meeting where guest speakers discuss various topics every last Friday of the month. Here is an abridged version of my presentation. I believe others could find an interesting thing or two. In August 1972, Idi Amin launched his so-called economic war which led to the expulsion of Asians. In the months that followed, Uganda experienced unprecedent inflation. With the economy in free fall, many workers realized that their salaries were no longer sufficient. At Makerere University, the country’s premier higher institution of learning, professors took to driving taxis to supplement their income. One professor, until recently a minister in Museveni’s government, was the taxi driver. His colleague, an education professor, was the ‘turn boy’ or conductor. Others became teachers in secondary schools. Their wives turned the garages of their residences into unofficial canteens. Amin’s economic war led to the birth of side hustles in Uganda, where employees do something outside their official jobs to supplement their incomes. The importance of side hustles was further cemented in 1990s when the Structural Adjustment Programme led to thousands of people losing their jobs. Recent mergers of government agencies (rationalization as they call it) and closure of funding organizations like USAID continue to make employees think of life beyond their offices with polished floors. So, if you are thinking of starting a side hustle, what key things should one think about? Here are a few points to ponder. Time: Side hustles for people doing 8-5 jobs should not be too time consuming. Get a hustle like buying and selling land, flipping houses, buying and selling cars, bonds and unit trusts (if you can call them side hustles), or even supplies. Bars, salons, and restaurants require a lot of time when starting which you may not have as you have to concentrate on your job as well. Also, workers in such sectors are unreliable. You don’t know which day they will not turn up. Or when they will sell a crate of beer and replace it creating an impression there are no customers. Still, you don’t want to stay awake in a kafunda so that a few men not eager to get home can finish their beer and leave to enable you close the day’s operations. Cash payments: Avoid side businesses where most of the payments are made in cash. You don’t know when the workers will disappear with it. Most side hustles are small and may not have systems to protect revenues especially in the beginning. Side businesses where people pay in the bank are better. There you can protect your revenue. I know there are mobile money payment codes these days but there are still a few issues with them to be fully embraced. Small is beautiful: All business plans show profitability at one stage. Also, however much research you do, there will always be stuff you will only learn when doing the business. Start small and allow yourself to learn the trade. Don’t throw all your life savings in a business at the beginning. Don’t borrow to start. If you are to borrow, maybe from family. Start with your savings or pool money with others. Six months rule: Before you quit your job to fully concentrate on the side hustle, instruct your bank to send 100% of your salary to an investment account or unit trusts or bonds. Don’t touch this money. Now, see if you can rely on the side hustle for six months. Pay all business and personal expenses from the business. That way you will know if the business is profitable or if you have been subsidizing it with your salary. That way you will avoid looking for a job a few months of leaving one. Do what others are doing: Your side hustle doesn’t have to be innovative or ground breaking. Do what others are doing. See a sector you can invest in, where you can easily raise start up capital and get going. But run it better than others. Ground breaking ideas can then be implemented when you have money you can afford to lose or can raise the required capital from angel investors. Cashflow is the lifeblood of business: Look for businesses which have good cashflows. Planting trees that mature after 20 years should be for people investing for retirement. But doing something that brings in money regularly helps keep the business operational without necessarily relying on the salary or salary loans. Do people need to do typical side hustles? Should everyone do business? There is no clear answer. One just needs to find a model that works for them. Apart from some telecoms and banks, many businesses in Uganda that publicly publish their returns show net profitability of around 10%-15% annually. This means that an employee who invests in treasury bonds or unit trusts is likely to earn the same percentage without any hustle of running after the ever-elusive customers. It can also be a strategy of accumulating capital to venture into capital intensive side hustles that don’t require a lot of time like real estate. The writer is a communication and visibility consultant. djjuuko@gmail.com

September 25, 2025

Out to Lunch

#OutToLunch: Unambitious delayed projects, potholes creating a self-doubting population

#OutToLunch: Unambitious delayed projects, potholes creating a self-doubting population By Denis Jjuuko A few years ago, I used to frequent Addis Ababa, the Ethiopian capital to largely attend meetings at the African Union headquarters. If you kept away for a few months, you would return to a city that you wouldn’t recognize. A new flyover would exist within a few months. You would see people laying down railway lines and find these huge buses providing public transport. Addis Ababa in the mid 2000s was a construction site that was turning slums into hotels of certain status and other infrastructural projects. They seemed to deliver their projects without much delays. One thing I also noticed about Ethiopians is that they claimed to have the biggest everything. A cab driver or a university professor would quickly tell you that they had the biggest market in Africa — the Merkato, equivalent of our Owino. They claimed they had the largest number of cows on the continent, biggest airline, largest number of producers of leather products and coffee, biggest army and even the most beautiful women. Although some of these claims may be true and others could be debatable, Ethiopians have come to believe that they have to do the biggest things. And they go ahead and do them. Just the other day, Ethiopian Airlines launched perhaps the biggest hotel in Africa. Ethiopian Skylight Hotel in Addis Ababa boasts of 1,024 modern rooms. That is perhaps why they decided to utilize River Nile a little bit more, they didn’t go around building a 100 Megawatts dam. They went for 5,150MW. The Grand Ethiopian Renaissance Dam (GERD) that was launched a few weeks ago is, true to Ethiopian style, billed as one of the largest infrastructural projects on the continent. And like roads and railway lines in Addis Ababa, the hydroelectricity dam, which cost US$5 billion to build was completed in 14 short years. It had many challenges such as protests from Egypt over the use of River Nile — like they do whenever anyone else wants to use the Nile waters as well as funding, technical skills and even bloody wars. But the project never got derailed. Compare it to the Grand Inga Dam in the Democratic Republic of Congo, perhaps the world’s wealthiest country, and you will understand what I am saying. Or just look at some of the countries where it takes a year or more to build a single kilometer of a dual carriage road without interchanges and bridges. To build the GERD, Ethiopia got most of the funding from local contributions in form of donations, and selling of bonds locally and to Ethiopians in the diaspora among other sources. They got very little foreign debt to achieve their project which ideally should ensure affordable electricity access to many people in Ethiopia while exporting some to neighboring countries thereby getting much more foreign revenue. Ethiopia is not some country in America, Europe or Asia. It is actually considered part of East Africa and a mere two hours by air from Entebbe. They face similar challenges like us. Wars, famine, draught and diseases among others. Like Uganda, they are landlocked and depend a lot on agriculture. In fact, we have just toppled them as the largest coffee exporter on the continent. They still produce more coffee though only that they consume a lot of it domestically. Since we are so similar and ideally neighbors, what do they have in their DNA that we don’t? How can they run an airline with more than 150 aircraft while we struggle with about six including leased ones? How can they build flyovers in Addis in months while we take decades to complete ours? Or build small hydroelectricity dams with defaults while they complete mega ones? There is a need to dream big by technocrats and be intentional about building a culture that leads us to achieve our targets and on time. We can have as many patriotic lectures as we wish but if people are driving over potholes every day and have them normalized as the way of life, we won’t achieve more ambitious targets like GERD. We will end up with a population that self-doubts itself. Businesspeople will not dream of creating mega factories or big businesses. Their ambitions will remain importing a few containers from China, driving an old Landcruiser, building a storied house in a slummy area, and another in the village and a few apartments. An ordinary Ethiopian seeing the country launching GERD or the largest hotel on the continent will dream of something as big. The writer is a communication and visibility consultant. djjuuko@gmail.com

September 25, 2025

Out to Lunch

#OutToLunch: Invest in a residential house or start a business? It is your profile that matters

By Denis Jjuuko It is one of those debates that will never end similar to the one most people are used to —chicken and the egg, what came first? Though this time it is on a personal residential house and a business or even investing in financial assets like treasury bonds. It is an issue we have discussed before in previous editions of #OutToLunch. Since it won’t go away, why not revisit it? First, let us get to speed with the differing arguments. One side of the coin posits that people especially young ones investing in personal residential houses are stifling growth and funds that may have been used to invest elsewhere is stuck in bricks and mortar. That renting is many times cheaper than owning a personal residential house. The argument continues that people should invest in personal residential houses when they are financially secure. Millions can be stuck in a residential house which doesn’t provide much returns. The other side of the coin argues otherwise. That a personal residential house is a prerequisite for growth. That it is an investment too and unlike businesses or financial assets, it is not as affected by inflation. The argument is that a residential house’s value increases year on year as the country develops. It is a low-risk asset class that leads to increment in one’s net worth. Proponents of this view also argue about peace of mind. The landlord doesn’t have to get worried if he popped in and found you eating chicken! And it can be an asset one could use as collateral for financing to invest in other areas, the argument continues. What decision, then, should a young person make? Invest their money in business, bonds or start on a personal residential house journey? These questions need contextualization, which is never provided by those who advance one argument against the other. For example, what does one want? What does the person do for a living? Can one do both? Many people are not wired not to lose money especially if they can withdraw it at any time the way it is with financial assets. If they hear something is profitable, they rush to invest into it without thinking. That is why many scammers exist. They know people who have money are easily tempted. A cousin has no fees? They rush to give. Real estate is hard to liquidate, which forces many easily excitable people to keep their wealth for the long term. But does a personal residential house curtail somebody’s financial growth? It could, where money that would have been invested in business is channeled into an asset that may not bring back immediate returns. Many Ugandans love building houses in their ancestral villages where they visit a few times a year and can’t rent out or turn them into small bed and breakfast enterprises. Others want very big and fancy ones, which they probably don’t need. And such projects could lead to the collapse of a business or deny one funds that they could have invested elsewhere to ensure financial growth. This brings us back to the issue of contextualization that we talked about earlier. In this case, it is the profile of the person. If you decided to invest in a business or financial assets, do you have the temperament to see money accumulating on your investment account without spending it on ostentatious goods? Can you see your friends holidaying in Santorini and not feel the urge to do the same? If you are a man, are you be able to handle a spouse that sings in your ear everyday about not owning a house? Of if you visit your friends, do you feel left out because you are renting? Will you be able to handle the stress that comes with a business failing? Or you will regret why you didn’t build? As you can see, there are many questions in this article. Questions whose answers can only be provided not by financial advisors on X and TikTok but by the person who is in the middle of making the decision. Building a personal residential house may be the best decision one could make. For another, it might not be the best decision. The type of house and where it is built matters as well. Similar to financial assets, where one invests matters. However, I believe that people can build residential houses while also investing in businesses or financial assets at the same time. Most Ugandans build incrementally, which is done over several years. If one had a certain amount of money, depending on their interests, they could have a percentage in a personal residential house and another in business or financial assets. The writer is a communication and visibility consultant. djjuuko@gmail.com

September 4, 2025