June 2023

#OutToLunch. What we could learn from Kenya’s China Square

By Denis Jjuuko If you are an ardent follower of regional news, you have most likely come across China Square, a popular retailer located inside Kenyatta University’s Unicity Shopping Mall in Nairobi. China Square has been in the news for committing a heinous crime of selling its wares way cheaper than Kenyan traders prompting action from Kenya’s cabinet secretary for trade. The secretary said foreigners should be involved in manufacturing not running retail outlets in glitzy shopping malls. One Kenyan distributor had even petitioned the country’s standards bureau to complain about the quality of some of the products on China Square’s shelves. The standards bureau found the product to be genuine from the same manufacturer. The Kenyan distributor was selling them at a very high price compared to China Square. Buoyed by the revelations of the standards authority, many Kenyans like they usually do, turned to Twitter to argue that Kenyan traders were charging so much for the same product and they had no problem buying from China Square. Back home in Uganda, many foreign traders particularly from Asia have set up shop in every little building known as an arcade or mall. Ugandan traders too complain about the Indians and the Chinese and how they are undercutting them with cheaper prices though being Uganda, these complaints haven’t received the attention of a minister or permanent secretary. But what makes products of Ugandan traders from the same manufacturers expensive? There is the issue of high interest rates on bank loans. It is inconceivable how a trader borrowing money at highs of 25% can be able to trade and survive. Some even go to informal money lenders who charge as much as 10% per a month or 120% annually. Unless you are selling contraband, it is not possible to do business where the loan interest rate is 5-10% per a month. It is a license to fail. The foreigners are usually coming in with loans at under 3% annually. Many actually don’t even have loans, they are using supplier’s credit where suppliers and manufacturers give them goods on credit to pay back in a particular period long after goods have been sold off. Many Ugandans also have access to the supplier’s credit though we are good at abusing it. Many Ugandans once they get goods on credit once or twice, they change numbers and location. Eventually, they become endlessly broke and blame everyone but themselves. If you think this isn’t the case, how many people have borrowed money from you and paid it back? Or even paid it on time? If people complain if you send them money on their mobile phone before asking them which number where they don’t have a credit they don’t want to pay back, what about a supplier in the far east? So we end up all the time looking for money to pay new suppliers instead of cementing lasting relationships with one who has been extending goods on credit. Then the cost of doing business. In downtown Kampala, you will find four traders or more renting one shop but each is suspicious of the others. So, each of these four traders flies to China, Dubai or Turkey to bring the same product. That is four air tickets, four hotel rooms (or some shanty digs in Deira) instead of one. The foreigners would send one person to do the shopping. In fact, they wouldn’t even send, they would simply send an email and goods are shipped in. A foreigner who will save four air tickets and accommodation for a week will certainly sell their merchandise at a cheaper rate. Ugandan traders must create lasting collaborations with suppliers and also embrace technology. And then of course our other weaknesses such as diverting money for self-actualization projects. A house in the village in which we spend less than 10 nights a year, a wedding deserving a top member of the royal family, a residential house in the city the size (and even shape) of a midsize shopping mall, a fancy but old SUV, a mistress in each corner of Kampala (for men), and a long line of children. As many Kenya traders are building and buying fancy apartments, the China Square people are most likely renting one in a walkable distance to their shop and only having a few children. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch Western Uganda milk model could save Karamoja from cheap iron sheets

By Denis Jjuuko Although it is not uncommon to support people facing calamities with relief items such as food, clothing and shelter, it shouldn’t be the modus operandi all the time. After the storm has calmed down, people affected by natural and even man-made disasters should instead be helped to rise again. If we continue feeding them, they will become comfortable to put in the hard work necessary for their development. It is not sustainable too. Karamoja has been a story of relief for as long as Uganda has existed despite its massive potential in animal husbandry and of recent mineral exploration. With large swatches of land, and a culture around cattle keeping or pastoralism, how can people in the area be helped to move from holding cattle for bragging rights into a commercial activity? The world has never been short of demand for beef and other animal byproducts. However, it seems we have always looked at Karamoja as a place that deserves pity hence the massive plan to donate cheap iron sheets that we hear didn’t even reach those who needed them. A 28-guage galvanized iron sheet on average costs Shs30,000 which is approximately US$8 and if a family was to get 10 sheets, that would still be less than a price of an emaciated calf. But like the popular Chinese proverb urges, you need to teach people how to fish instead of giving them fish. If we are giving Karamoja people iron sheets, we are denying them an opportunity to shift into decent and meaningful work that is sustainable. If anyone wants to build an iron sheet roofed house, how can they be enabled to afford it on their own? The idea is to empower them and introduce animal husbandry that is geared at turning a profit. That one can sell some of their cows and don’t necessarily have to raid a neighbor’s and with some profit made, they can be able to build these houses on their own. Milk could be another area that can enable people in Karamoja get decent sustainable incomes. Cows in whatever form produce some bit of milk which the farmers or pastoralists can be able to sell and get sustainable income. In the western Uganda milk shed, government and indeed some development partners have supported the installation of milk coolers in every single trading centre. What farmers now do is to deliver the milk every morning to a trading centre where a cooler has been installed. The farmers formed associations and SACCOs that own the coolers. So once they got themselves into these associations, development partners such as Agricultural Business Initiative (aBi) offered farmers grants where they only paid back 50 percent and fully owned the cooler. A cooler came with a standby generator and a lab kit to test that the milk being delivered is of the required quality. Farmers also got aluminum cans to transport the milk. That has significantly changed the fortunes of farmers in the western Uganda milk shed. People no longer move long distances to transport milk to major towns such as Mbarara where many times they would find coolers full to capacity hence pouring the milk. You heard that milk flows in Mbarara, it was because of lack of cooling capacity. Today, there is no milk being poured on the streets of Mbarara because of these coolers. Milk factories and indeed some traders simply pick from these cooling centres. Farmers are paid every month by their SACCOs. But these SACCOs have gone ahead and expanded creating credit and even food facilities. A farmer who needs money simply gets a low interest loan from the SACCO where they supply milk and then the money is deducted at the end of the month. Also the SACCOs have established drug shops and food stores. A farmer who wants rice or salt simply gets it from the shop and money is deducted at the end of the month. Some of these groups like Abesigika and the one in Ntungamo collect thousands of litres of milk per a day. To ensure they get more from every litre, many SACCOS have bought their own trucks so they transport the milk to the factories. In areas like Rushere, SACCO managers told me that even banks like Uganda Development Bank enable them borrow billions of shillings collectively to improve their farms with water and pasture. Women who were previously excluded from the milk industry are now involved with many forming additional groupings to make ghee, yoghurt, butter and such other things from their milk. Nobody I believe in the western milk shed needs a few iron sheets to roof their houses. What is so difficult in replicating this model in Karamoja? The writer is a communication and visibility consultant. djjuuko@gmail.com

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#OutToLunch ‘Idle’ Electoral Commission could play a key role in COVID-19 vaccinations

By Denis Jjuuko Uganda slapped a 42-day nationwide lockdown two weeks ago effectively putting the country back to the March 2020 days. Lockdowns are particularly effective when measures to curb the spread of a disease are put in place. The most surely shot though to curbing COVID-19 is by having a significant percentage of the most vulnerable to the disease immunized. Uganda has yet to immunize a million people. By the time of writing, only 821,659 people had been immunized from the first batch of nearly a million dozes that were imported early this year. Another 175,000 dozes had been imported by the time of writing. More doses were expected in early July from COVAX, the COVID vaccine sharing facility for poorer countries and others from China. The Americans are donating 500 million vaccines to poor countries. If we lobby well, delay the Congo road adventure for a year or two until we have nipped COVID-19 in the bud, we would have enough resources and vaccines to ensure all the people who need to be vaccinated have received and completed their dozes. If all these vaccines come in, we may have a significant number of people especially those who are most vulnerable immunized. The problem though is that the country is under a lockdown. Although the president can say only one word and the lockdown is lifted, opening up the country can also reverse the gains made during the period if not properly planned. Our health system is already stretched to its limit given the number of people that need treatment not only from COVID-19 but also from other diseases. Health workers who are already working in health facilities should be left to providing healthcare to the sick. So as we wait for the vaccines, we could use this time to train a good number of unemployed youth to be able to do immunizations so that when the vaccines arrive in the numbers we need, we have a critical mass of healthcare providers to administer the jabs without interrupting already stretched health centres. Student nurses, village health teams, and basically anyone with an O-level certificate can be easily trained. There are also the teams that have been distributing mosquito nets countrywide. We are not short of unemployed educated people who are easily trainable. Then because the vaccines are most likely going to arrive when the country is under a lockdown, the government can use the structures that it used in January this year to conduct presidential and parliamentary elections. Polling stations were easily organized within walkable distance of almost every citizen’s residence. Ballot papers and all the other materials were delivered almost on time in all the places they were needed. Nobody needed transport to go to vote simply because polling stations were stationed so near to people’s homes. There were 34,684 polling stations serving the whole country. This number pales in comparison with the 6,937 health facilities in Uganda. My father traveled 15km to get his first shot of the COVID-19 vaccine. That is how far a health centre is from where he lives. I know that for some other people, the distance to a health centre is so long and expensive that they simply give up. Yet when it comes to voting, my father simply walks to the polling station. So are other people countrywide. If we can have polling stations within walking distances of people’s residences, we can have the COVID-19 vaccine there too. The Uganda Electoral Commission (UEC) has a network of offices everywhere and over the years they have built the capacity of delivering materials in the remotest of areas on time. Now that they are ‘idle’ for the next few years having concluded the election cycle for this political term, they can be deployed to use the same logistical proficiency to deliver the vaccines. I know that the National Medical Stores (NMS) is mandated for this role and they have done well over the years to deliver vaccines and medical supplies to facilities but they don’t boast of UEC’s numbers. The commission should come in and play a supporting role. The other organization that could help in this logistical exercise is the Uganda National Examination Board (UNEB). Every year, they deliver exams to thousands of examination centres across the country. Although they don’t have the reach of the electoral commission, they can also activate their logistical systems to help the country during this time of need. The writer is a communication and visibility consultant. djjuuko@gmail.com

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