#OutToLunch High soap prices call for a shift to oil palm growing

#OutToLunch High soap prices call for a shift to oil palm growing

By Denis Jjuuko

Scarcity is the mother of ingenuity; we have always been told. When things are scarce, human being quickly learn and adopt alternatives. For many Ugandans who grew up during the 1970s and 1980s, when household commodities were scarce, they learnt to improvise. Certain plants, I am told, were used to wash both the clothes and human body. Soap was one the household commodities that were extremely scarce. Kids in urban middleclass homes learnt what their village counterparts always experienced — tea without sugar or to sugarless tea taken with sweet potatoes and/or sweet bananas.

Over the last few days, you have probably seen social media posts of how expensive a “tree” (read bar) of soap is. At the turn of this year, a bar of soap was going for about Shs3500 for the well marketed brands and much less for ‘average’ brands. Today, the same “tree” of soap is threatening to reach the Shs10,000 mark. Unlike the 70s and 80s where goods were not on the market, today, if you have money, you will be able to get whatever number of “trees” of soap that you may need.

To be fair, it is not only soap whose prices have gone up. A 50kg-bag of cement is now on average at Shs32,000 from about Shs28,000 in January this year. Steel bars, have gone up by about Shs10,000 for the 16-millimeter size for the new brands on the market. Established brands are now selling by more than Shs20,000 of the January 2022 prices. Of course, today I will not say anything about petrol and diesel to avoid boring you to death.

But since the issue now at hand is soap, let me stick to that. The main ingredient for soap is crude palm oil which is largely imported from Malaysia and Indonesia, the world’s leading producers. Palm oil is extracted from oil palm fresh fruit bunches. Growing oil palm was only introduced to Malaysia and Indonesia by British colonialists otherwise it is an indigenous plant of Sub-Saharan Africa.

Yet the continent is now almost a net importer of crude palm oil. It tells you how far we have come! Palm oil is the world’s most diverse agricultural product. It can be used to make soap, cosmetics and at the same time edibles like cooking oil.

In Uganda, we first experimented growing oil palm in Ssese islands in the 1970s but commercial farming only started in mid-2000s. Figures from the National Oil Palm Project (NOPP) of the Ministry of Agriculture indicate that the country needs to grow at least 100,000 hectares to meet current national demand. In Kalangala, only 11,346 hectares have been planted and another 7,500 hectares are under cultivation or planned in Buvuma. Oil palms take four years to mature and last between 18-25 years after which they have to be cut and replanting starts again.

Today, the price of crude palm oil has gone up because of many reasons. First, the invasion of Ukraine and Russia according to Reuters has halted the supply of sun oil, an alternative to palm oil. “Palm oil has become the costliest among the four major edible oils for the first time as buyers rush to secure replacements for sunflower oil shipments from the top exporting Black Sea region that were disrupted by Russia’s invasion of Ukraine,” the Reuters article reads.

The article adds that “since ports in Ukraine will remain closed until the invasion ends, Asian and European refiners have raised palm oil purchases for near-month shipments to replace sun oil which has lifted palm oil to irrational price level.”

Second, Malaysia has reacted by restricting crude palm oil exports to meet its own national demands first. Third, since last year, Uganda introduced a 10% tax on crude palm oil imports. These factors have increased the price of crude palm oil in Uganda.

The beauty of this though is that farmers in Kalangala are laughing all the way to the bank. As you read this, a kilogram of oil palm fresh fruit bunches is going for Shs1,238 compared to last month’s Shs1,137. Since September 2019, prices of oil palm fresh fruit bunches have increased by 166 percent from Shs465.This is good for Ugandan farmers.

In Kalangala, there are 2,063 smallholders who make about Shs6 billion collectively every month. An acre of oil palm gives the farmer at least a monthly income of Shs400,000 (oil palms are harvestable every 10 days). If the government is keen to empower farmers, oil palm growing is one of the solutions. Could the parish development model look at areas where farmers can grow this crop and empower them to do so?

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

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Out to Lunch

#OutToLunch: Make cylinders of 1kg, 2kg if gas is to replace charcoal

By Denis Jjuuko On a trip to northern Uganda some years ago, I asked the transport team to provide a sports utility vehicle (SUV). I prefer SUVs for long journeys as they are more comfortable and can handle the terrain. We were to spend a week traversing the breadth of northern Uganda. It didn’t take long to realize that some of the people I was traveling with were unhappy but I couldn’t put a finger to it. I thought maybe they didn’t want to make the trip. Along the way, the driver pointed to a roadside makeshift market and said in Luganda, “laba emaali,” loosely translated as look at money while pointing at sacks of charcoal that were packed beyond the rims with a fibre net holding the extra black pieces together. That is when my colleagues said that I have made them miss returning to Kampala with charcoal. That I should have asked the transport team to provide a pickup truck. “We are not ministers to travel in this kind of car,” another angrily quipped. I was ably informed that a sack of charcoal cost a fraction of what the traders in Kampala charged. I understood their sentiments. I offered lunch and dinner for the weeklong trip, arguing that they can use that saving to buy charcoal when they returned to Kampala. I ceased being a fan of buying stuff along our highways to return with to Kampala after realizing that prices quoted by traders or vendors depended entirely on the car you drive and how you look but that is another story. Also, I have never been a fan of charcoal. I find it expensive, easily wastable by households, dirty and cumbersome to use. After that trip, I understood the place charcoal occupies in people’s hearts and households. It wasn’t, therefore, surprising when panic engulfed Ugandans especially the urban dwellers when there was an announcement that charcoal had been banned in Uganda ostensibly to protect the environment. Social media went gaga. Parliament swiftly stepped in and advised the government to give it a week by presenting its comprehensive plan. Charcoal is a byproduct of trees and many have been felled to make it. Truckloads of it used to dominate certain routes to urban areas. Many roadside kiosk owners survived by vending charcoal. We have just experienced a severe drought in Uganda and I believe that many people won’t have food to eat in a few months. I perfectly understand why government wants to ban it. As somebody who isn’t a fan of it, I have no tears to shed to be honest. But that would be selfish. The majority of households can’t afford the alternatives — electricity and gas or even briquettes. Beyond price, both forms of energy also have distribution limitations in Uganda. Liquefied petroleum gas in Uganda is largely sold in cylinders of 6kgs and 12kgs. If you don’t have a cylinder, the startup cost is approximately Shs170,000 for 6kgs and Shs266,000 for a 12kg. The median monthly income in Uganda is Shs200,000! What makes charcoal the preferred choice by at least many urban households is because with Shs1,000, one can get a palmful of it which they can use to cook something. Many of our people don’t earn a predictable regular income. They wake up, go to work (if they find it) and are paid per a day or work done. Once they get that money, they can buy some charcoal of Shs1,000 and some maize flour or a few fingers of Matooke and prepare the day’s meal. They can’t afford to spend more than their monthly income on the gas equipment. There was a time government distributed some gas cylinders freely. I believe that at Shs60,000 for a 6kg and Shs112,000 for a 12kg for a refill respectively, the majority of our people can’t afford it. Gas cylinders even if distributed for free will most likely end up as decorative materials. What then can be done? Government must or support the private sector to make gas cylinders of 1kg or 2kg which means that the majority of households can afford to refill at Shs10,000 for a 1kg or Shs20,000 for a 2kg or even lower. That is why manufacturers of consumer goods like sugar or cooking oil don’t sell only 25kgs or 5 litres respectively. They sell in small quantities that the majority can afford. Our people buy sugar by spoonful, diapers by a piece, eat beans but ask the restaurant to add in meat soup (because they can’t afford meat). They can only afford gas by a kilo or a half not 6 or 12kgs. The writer is a communications and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch: Medical apprenticeship programs critical in improving diagnosis and treatment

By Denis Jjuuko You probably know somebody who after trying many healthcare facilities, they were told there was nothing wrong with them and they should go back home. The symptoms persisted though and the more facilities they visited, the more they were told the same. Sometimes they were given painkillers to psychologically manage them. Desperate, they visited a traditional healer whose Thursday clinic deep in the village is thronged by many people who share similar experiences. The healer is basking in glory. He saved so and so; his marketing team disguising themselves as waiting clients assure them. After a few months of some relief, the pain comes back and this time more excruciating. But since they tried everything and failed, they give up and wait to die. And indeed, they die. At their funeral, we claim that it was God’s plan! Well, if you don’t know anyone who has gone through that, at least you heard of King Oyo’s story. The now deceased Tooro Kingdom leader visited some high-end hospitals in Kampala after feeling persistent backpain. X-rays, MRI scans later, they told him they saw nothing. Being a person of means, he flew to a hospital in Nairobi where he was diagnosed with cancer. A year later he was dead. What did the people in Nairobi saw that the Kampala ones couldn’t? Well, Nairobi has a PET Scan or a few. Kampala and the whole of Uganda don’t. A PET Scan costs about US$3m or approximately 17 Landcruisers. If there was a meeting of government officials, you would run out of space to park them. That is how many we have in Uganda but a PET Scan is not something we have been able to buy and install yet. But it isn’t just the lack of technology that is a problem. You can have a PET Scan and still fail to diagnose a patient properly. Patients aren’t sent for a PET Scan on their first visit to a clinic as it is rarely used as a diagnostic test rather one that determines an extent of the disease. Other tests have to be done. And still a diagnosis can be missed depending on who has done the scan or X-ray and the reading of the results. If for example a child has a bone tumor, a pediatric radiologist would probably pick up the first signs that an adult radiologist may easily miss. Even then, the doctors who ordered the tests and other specialists can sit as a group and discuss what they are seeing. They may even disagree. After that, they could order for a biopsy and eventually a PET Scan if it is needed. You see, that means that you need to have a team of specialists with not only adequate training but also experience that exposed them to a diverse spectrum of patient diseases and how to diagnose them. If you only train in Uganda and practice in Uganda for a year or two, it is most likely you won’t be able to diagnose many diseases even with advanced technologies at your disposal. Doctors in Europe struggle to diagnose and even treat malaria, which is many times chicken feed to Ugandan doctors. When did your doctor last consult anyone before prescribing drugs? Most likely he or she listened to you, sent you to the lab, looked at the results and sent you to the pharmacy or told you to go back home. Isn’t that likely to lead to a wrong diagnosis? I am not saying that a team needs to look at each and every case but you get the drift. To have good doctors in Uganda, there is a need for a robust apprenticeship program so that the graduate doctors can learn from as many experts as possible. When we spend years discussing intern doctors’ wages, it means we are delaying their learning. They aren’t getting the right exposure from the seniors. And if they aren’t properly apprenticed, they will not become good doctors. There is no two ways about it. We also need to have a critical number of health workers sent elsewhere for exposure. They should learn how medicine is practiced elsewhere while getting exposed to different diseases and treatment methods. Government should be talking for example to American hospitals for medical residency. We could send some to Aga Khan in Nairobi as well. Those who are sent by government, they should be contracted and incentivized to come back to work here. The right technology and generally good working conditions should be in place. Upon return, they should train others through apprenticeships. They should spend a certain number of hours a week for a few years in public hospitals with the list of young doctors they have mentored as part of their deliverables. Ensure that those trained doctors remain in hospital wards too. This is actually cheaper than sending politically connected patients abroad for treatment because Uganda can only send so many. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch: Uber’s abrupt exit calls for regulation of international brands to protect users

By Denis Jjuuko Ten years ago, Kampala was all the rage. Uber, the global taxi hailing app launched in Kampala with fanfare. The razzmatazz that comes with a global brand that promises to change the world. All our transport problems, at least in Kampala, would be sorted. It was cool to order a Uber or arrive at a fancy party in one. If you hadn’t installed the app, you were being left behind. There was no need to buy a car. Uber would sort that at the fraction of the cost. If you had a car, it was so cool to use it as a Uber on your way to or from work. And if you didn’t like your boss, you could quit your job and become your own boss as a Uber driver. It wouldn’t get any fancy than that. Some people cashed out their savings, bought a few corollas, got their cousins who had previously graduated from university and made them Uber drivers. Side hustle had never been so simple. Special hire drivers cried. Calls placed to their previous customers went unanswered. The suitor had a new lover. You were exploitative. Uber transported someone to wherever they wanted at the cost of a chapati! Some young people decided to create Uber for all sorts of things. Looking for somebody to wash your clothes over the weekend, a “uber” was created for that. Need a truck to transport something? There was a “uber” for it. Need a boda? Well, another “uber” was created before Uber itself introduced bodas. Innovation hubs were full of ideas with young people dressed in hoodies spending all their time trying to create the next Uber. To be fair, it wasn’t just in Uganda. Every new innovation has somebody trying to replicate it for another industry. With apps like Uber and AirBnB and their early global success, other platforms for gig work or sharing were created everywhere. UpWork, Fiverr, DoorDash… the list is endless. We were told the sharing economy was the new thing. That we didn’t need to own stuff. We could easily share. The problem though with international brands like Uber is that they can wake up and make a decision that affects many people. Like they did when they announced that they will no longer be available in Uganda. And within a few minutes, they were gone. They didn’t even have the courtesy to inform the drivers signed up on their app for at least a week. I believe some were even still processing the news and maybe even parked at malls waiting for clients only to realize that the application had gone mute. I believe those who hadn’t checked their communications platforms restarted their phones several times. Developing economies like Uganda shouldn’t just allow these brands to come in, do and go as they wish. They can’t just be making abrupt decisions from Silicon Valley. Why couldn’t Uber give time before exiting the country? They could have given a 90-day notice so that their drivers and customers have enough time to prepare. To operate here, the government should force them to follow some rules and regulations. Usually when they start offering service in smaller economies like ours, there is something they want which isn’t direct revenue. It is global presence that enables them to have an explosive initial public offering on the New York Stock Exchange or attract some funding. Once they achieve those goals, their mission is over and can do whatever they want especially where there is no regulation. In markets where they are regulated, they can’t just wake up and announce that they have closed. Also, the actions of brands like Uber mean that there is a need to identify our challenges and find applicable solutions. For many years, I wonder whether Uber drivers made any money. The rates were so low prompting many of them to try to negotiate out of the app. What had made Uber appealing to drivers was the near guarantee of a return trip. Unlike a special hire (cab), the driver would be able to find a customer after dropping off somebody. That increasingly became difficult yet the rates remained low. When fuel prices went up, Uber didn’t respond appropriately. Apparently, increments had to follow some policy created based on the American or western European economy. Bad roads and traffic jams were never factored in. Ugandans largely drive old cars which means that they consume a lot of fuel and susceptible to breakdowns. If the roads are potholed, maintenance and repair become costly. An unregulated global brand wouldn’t care much about that while setting rates especially when they don’t own the asset that guarantees their return (25% of each trip in the case of Uber). Regulation of global brands is critical in protecting the interests of users. The writer is a communication and visibility consultant. djjuuko@gmail.com

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