#OutToLunch Let us have coffee over affordable housing

#OutToLunch Let us have coffee over affordable housing

By Denis Jjuuko

There are skits on social media of a landlady called Nakayiza. She can visit her tenants at any time and if she finds them eating chicken or meat, she wonders how they can be enjoying expensive foods while still renting. She castigates them for being such poor planners who enjoy life’s excesses instead of becoming landlords like herself.

But if the tenant made a mistake of not inviting her to partake in the meal and/or giving her a drumstick and gizzard, they would be in trouble. She would grab the saucepan and go with it telling them to report her to whoever they want and see if they would still live in her houses. She always strikes at meal time. Nakayiza is hilariously brutal to her tenants especially those who may be in arrears.

Nakayiza may be drama and she excels at it but her script writers know exactly what happens in the communities especially informal settlements where the majority of urban dwellers live in Uganda. Like Nakayiza, tenants in real life face such dehumanizing landlords every day.

Yet as Uganda’s population continues to grow, so is the need for decent housing especially in urban areas. Uganda is one of the most urbanizing countries on the continent thereby putting pressure on already strained housing facilities. The country has a deficit of about 2.3 million housing units and growing by about 200,000 annually.

Lack of proper housing leads to diseases and increases household poverty. A person fearing when Nakayiza would strike wouldn’t be able to have a decent meal at home. One time she complained of a family eating avocado yet a necessary food for children’s growth. But also, one wouldn’t be able to concentrate at anything because they spend all their time fearing when Nakayiza would strike.

This calls for more investment in affordable decent housing. By affordable I mean a house the majority of people would be able to own over a long period of time say 10 to 30 years. People would consider that they have a stake in the country and will work hard to ensure they can own the property at one stage in their lifetime thereby leading to economic growth.

I recently came up a report titled “A Ladder Up: The construction sector’s role in creating jobs and rebuilding emerging market economies,” commissioned by Habitat for Humanity and it had some interesting findings. For “every US$1 million in construction output creates an average of 97 jobs across countries ranging from 43 jobs per US$1 million in Mexico to 182 jobs per US$1 million in India,” the report reads.

I believe in Uganda, one US$1m invested in housing could create as many as 500 jobs. From informal workers such as porters and bricklayers to professional workers such as architects and engineers. No need to mention indirect workers at steel factories and the entire value chain and money paid to government for permits and such other things.

According to Habitat for Humanity Uganda, a two-bedroom affordable house in an urban area cost approximately Shs35m or US$9,000 (doesn’t include the cost of land). So, with US$1m, one can be able to build at least 100 houses in an urban area. In a not so urban area, the cost is Shs25m.

These numbers could go further down if the government lowered taxes on construction materials and there were massive projects planned so that they could enjoy economies of scale. Banks could be incentivized to provide affordable financing. Residential construction has a lot of potential.

“Investment in residential construction, in particular, represents a potential win-win for low- to middle-income countries, as it creates quality jobs while filling a massive void in affordable housing,” the report mentioned above further reads.

An investment of just US$1m in a community would change it forever. Once people aren’t worried of returning home during the rainy season when the landlord has removed one of the iron sheets, they would be able to push their other dreams.

As we have seen with Nakayiza and landlords like her, commercial tenants don’t go through the humiliation that residential tenants face. When a commercial tenant defaults, the landlord simply locks up the premises. The tenant’s family isn’t dehumanized. So residential housing for the country’s development is where we should put much more emphasis. It is high time we seriously had coffee on affordable housing.

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

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Out to Lunch

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

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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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