#OutToLunch: How government of Uganda can solve its motor vehicle problem

By Denis Jjuuko

One way to tell that you have arrived at a government of Uganda facility such as a local government district or even ministry headquarters is the sight of motor vehicles rotting away in the compound. The government seems to find it easy to procure new vehicles than maintaining and servicing their existing fleet.

Some of these vehicles such as tractors, rollers, excavators and such other equipment cost billions each to buy but even the usual ordinary standard pick-up truck is expensive. One would think that maintaining and servicing these vehicles is cheaper and indeed more prudent than to buy new ones but this is Uganda.

This could have prompted the Ministry of Finance to announce that they wouldn’t be a budget for new vehicles for the next financial year. The news articles that announced this revelation didn’t mention whether there will be a budget for maintenance and service!

There is perhaps nothing that public servants love than a vehicle that comes with their offices. A car is a status symbol in Uganda for many since the majority of people come from poverty-stricken families. A car announces their arrival. One with the red or even blue license plates puts them on a pedestal they couldn’t probably have imagined while growing up.

In the 1990s, a fight erupted among the highest members of the judiciary. One judge was fighting with his superior over an official car — a Mitsubishi Pajero with a turbo engine or known as an Intercooler then. One judge wondered why his car wasn’t an Intercooler and created such a public circus over it.

Politicians once appointed in office, the first thing they want to know is which car has been assigned to them and if they can upgrade with the latest version. When the current cabinet was appointed, rumors surfaced that some ministers claimed their predecessors had put juju in the vehicles and therefore needed new ones!

I don’t know for how long Ramathan Ggoobi, the finance permanent secretary and secretary to the treasury, will be able to withstand pressure from politicians and public servants who want to buy new vehicles. Admittedly, this isn’t the first such directive government has ever issued. But I don’t remember if this was ever implemented. We shall wait and see.

Though the obvious thing if the ministry of finance wants to control its expenditure is by ensuring that its motor vehicle fleet is in good working mechanical conditions. Largely, the government buys these vehicles when they are brand new and if they are serviced well, they should be able to serve beyond five years.

I was told that government also doesn’t do comprehensive insurance for its fleet. This means if a car is involved in an accident, there is no compensation for it. So instead of getting insurance companies to replace the vehicle, government simply procures an new one. Buying vehicles all the time is more expensive than insuring them.

But does the government need to provide cars for all its officials? In many countries and even companies in Uganda, officers are facilitated to buy their cars. This can be done by providing interest free loans where the officer buys a car that they use for their official duties. The payment is deducted every month until the car has been paid off. The officer is then paid mileage every time they use the car. So the government wouldn’t be involved in maintaining and servicing the vehicle or selling it on the cheap just because the car has done five years. The officer knowing that this is their car, they will handle it with utmost care. Many wouldn’t demand for the expensive SUVs that they use today.

To make these cars cheaper, government can do a partnership with some of the vehicle manufacturers to assemble the cars in Uganda. Already, Kiira Motors has a plant nearing completion in Jinja. This would also create millions of jobs and kick off Uganda’s nascent automotive industry.

Alternatively, government can do what many organizations are doing. Hiring and leasing vehicles for its officers. Many companies and development organizations don’t own cars even those that are branded with their logos. They simply lease them and once they make about 150,000km on the odometer, they return them to the lessors and get new ones. This minimizes a company’s capital and operational expenditures. Maintenance and service is handled by these companies, freeing the lessee from the hustle of fleet management.

Of course, there are vehicles that government may still have to buy such as police and military vehicles and ambulances. But also, it can still lease them.

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

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

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#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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