#OutToLunch: With America freezing aid, Uganda should quickly utilize Shs14.6 trillion in unused loans

By Denis Jjuuko

It is 10.00am somewhere in Abidjan or Washington. The boardroom is well set up. The temperature is on point, to use Kampala language, and with the press of a button, the microphones become red hot and the giant screen is switched on. In the room, are several government officials from Uganda.

They are meeting executives from the African Development or the World Bank to convince them to lend money to Uganda to implement its various development projects that will improve people’s livelihoods and catapult the country to some level of middle-income status. The Uganda delegation did their homework as exhibited in the colorful spreadsheets, graphs and photos in the presentation. Using persuasive language, the Uganda delegation is making an impassioned plea to the lenders to advance the money as soon as possible or else millions of people will become poorer than they are today.

The executives from the lending institutions nod their heads. The Uganda delegation has been impressive. It doesn’t surprise them though. These are some of Uganda’s brightest minds. They know their stuff. They are passionate about their country. The only thing missing is money. You know, some people say money is not everything, it is the only thing! If the money is advanced, the country would indeed consolidate the gains made already over the last few years.

At the end of the question-and-answer session, the lending executives propose a break followed by a breakout session for themselves. The Uganda delegation can wait a bit in the executive lounge as they take in the executive views of the city and catch up with their families and work emails back home.

Within a few minutes, the lenders have made a decision and have called the Uganda delegation back to the boardroom. The Uganda delegation is a bit anxious but they know the loans will be advanced. The lender is also in business, they will be earning interest. The problem is usually on interest rate, loan period and payment terms. Small issues that could be easily agreed upon.

Anyway, in the boardroom, the lenders agree to advance the loan. Terms have been easily agreed upon and with consultation back in Kampala, the agreement will be signed within a few weeks. Indeed, the loan agreement is signed and the lenders advance the money.

All is good for Uganda, right? Not really. And that is where as an ordinary Ugandan you should get concerned. According to the Auditor General’s report, Uganda’s unused loans have jumped 12.95% as of June 2024 to a monstruous Shs14.6 trillion. Yep, Shs14.6 trillion or nearly US$4 billion. In the last six years up to June 2024, Uganda has been spending a cool Shs78.2b annually on such loans. That is some Shs469 billion on unused loans.

Yet many infrastructural projects such as roads are stalled because, we are constantly reminded, that there is no money. Projects that would have been completed on time take years because there is no money yet we have Shs14.6 trillion in some bank vaults waiting for us to collect and pay off contractors.

Suppliers to the Uganda government have had their assets sold by commercial banks because we have failed to pay their invoices. Their workers have become unemployed. Kids’ education has been affected. The suppliers can’t be paid but Shs14.6 trillion of loans is not being utilized.

If projects are not ready, why do we go and beg for these loans? At least if we don’t get the loans we are not ready to utilize, we would save Shs78.2b annually, which we would use to work on our projects debt free. How can a poor country be enriching the lenders?

Imagine a businessman who goes and borrows money from a commercial bank and then leaves it there while paying annually to have the money on their account and not utilizing it. And then that businessman wouldn’t stop there, he would still go to another lender in another city and borrow and leaves the money on account unutilized. Imagine what would happen to that businessman over the years.

Imagine if the Uganda government was a businessman, they would have collapsed already, assets sold on auction and the businessman dead of heart attack or somewhere in intensive care. Even though the Uganda government isn’t a typical businessman and can survive for years by borrowing money they don’t utilize, it will still affect it and more so the citizens.

With the Americans freezing their aid, it is time the government of Uganda utilized the Shs14.6 trillion to spur economic growth.

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

Tags: Abidjan, businessman, commercial bank, Denis Jjuuko, Government of Uganda ., Out to Lunch, Prime Time Communications

Out to Lunch

#OutToLunch: It is our turn to eat, the politicians have eaten enough

By Denis Jjuuko After nearly five years of planning, positioning, and scheming, it is time for implementation of strategies that could lead many people to their coveted offices. For some, the first hurdle is to convince their parties that they are qualified to stand for election in the primaries to represent them. To others, it is to decide whether to stand as independents and in which particular constituency. The political fever is rising across the country. At funerals, weddings, sports, religious and cultural events, candidates are aligning themselves sometimes with causes they don’t believe in while many times mudslinging others. Resources are not being spared. Unfortunately, human beings are not being spared too. Ssembabule seems to be an epicenter of violence. An incumbent even threw in the towel claiming the violence is too much. Before the ink on her words dried, a youth was shot dead! It is going to be long eight months or so. Just like it was in 2021 and in many general elections before. Usually, the news that comes out is of violence and tension leading to many people to fear. Internet is usually cut off at some stage. Some radio stations also get blocked. Tear gas becomes part of the oxygen people breathe in. But should politics be like that? Over the last few years, it has become a job. An assurance for many of those who win to earn significantly over a five-year period especially for those at the top end of politics—those who end up as Members of Parliament. They are not only paid well; the president usually appoints a significant number of them into his cabinet—an opportunity to earn even better. Maybe that is the reason it is a do or die for many candidates like we have witnessed so far in Ssembabule. Of course, many of those who stand for office won’t be elected and even many incumbents won’t win their positions back. Ugandan politics below the presidency tends to give an opportunity to a lot of new comers. They call it a ‘turn for someone else to eat.’ Issues are less discussed on what can really transform a country yet that is where we need to go. The country cannot develop if we are voting people because it is a “turn for someone else to eat.” That way you send people to elective offices who stand for nothing and therefore go wherever the wind blows. That way the country remains poor because politics is a core component of economic development. People who have no values won’t fight for anything that affects the poor. They will only be concerned about themselves and their immediate families. A few millions in their pocket, and they pass laws that lead the country to nowhere. Corruption becomes their middle name and scheming the religion they believe in. Yet the issues that affect all of us affect them too. If the road to a Kampala suburb is potholed everywhere, a politician who steals money to build a residence or rental apartments or a hotel will suffer too. He may have a government Landcruiser but for how long? His tenants or patrons could shun the apartments or the hotel because of inaccessibility. The building may end up as a white elephant. And if he is voted out, he may not have the resources to renovate it. When there are no doctors and drugs in health facilities, the politician may not have enough time to be flown to Uganda’s referral hospitals for the rich in Nairobi or New Dehli. At the end of the day, stolen money at the expense of public services won’t be able to save him. As we spend more and more time on radio and television talkshows and watching TikTok clips on a loop of politicians, we need to put them to task on what they tend to do. Particularly, how are they going to enable young people find meaningful jobs or any job at all? How are they going to help the elderly live decent lives? What is their plan on education, health, transport, and agriculture among other key sectors? Also, there is a need for civic education so that our people understand that the best thing for them is not to be given a t-shirt or a piece of soap or even a hoe, rather to have something that they do that can enable them buy such stuff on their own. It is time for the population to eat. The politicians have eaten enough. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2025

Out to Lunch

#OutToLunch: Poor pay of humanities teachers may take us back to Covid days

By Denis Jjuuko It is more than five years since the dark days when many people who could afford a TV set spent their days on the screen, watching numbers as they were being updated in real time of the people who were dying. Those without TV sets, clung to their small world receivers. The world was coming to an end. The televised address of the president became the most anticipated event. People waited for his trademark “therefore” with abated breath. Would he unlock the country or extend the lockdown? The children stayed at home instead of school for two years or so. The majority of those from middle income families deceived themselves that they were learning online. The majority of teachers also convinced themselves that they were teaching. The truth is learning wasn’t taking place. Those from poorer households loitered the streets and villages. Some of them have never stopped loitering up to today. Many became teenage mothers — their lives thrown into the world they had never imagined. A cycle of poverty on the horizons. Covid-19 is something many people will never forget. Over the weekend, a video emerged online of kids in a secondary school lounging in the vast fields and shrubs that make their compound. They were pretending to revise their books only for the camera to show many coupling. Some were even sleeping in the chests of others or very close to each other. It is hard to tell when the video was shot or which school it was. However, the concern of many people was that the ongoing humanity teachers strike is leading to many kids spending time discovering the anatomy of their bodies instead of being in classrooms learning. If teenagers spend their time discovering what they shouldn’t be discovering, many will end up pregnant or with sexually transmitted diseases. Remember, that we haven’t yet recovered from the teenage pregnancy crisis as a result of Covid-19. The humanity teachers are striking because government decided to pay science teachers more in a bid to stimulate innovation and transformation. The humanity teachers are calling this discriminatory arguing that they should also be paid as much as their science counterparts. Scientists may do a lot to transform a country but they can’t do it on their own. Innovations for example must be marketed. Lawyers must exist to help solve legal problems that may crop up as a result of scientists disagreeing on their innovations or how to share the proceeds. Getting humanities teachers back to the classrooms should be urgently handled so that we avert a crisis that may happen as teenagers loiter around school compounds for days indulging in activities that they shouldn’t be involved in. Although the country may decide that sciences are the best way to develop Uganda, it should not come at the expense of those who may want to pursue humanities courses. All learners should be given an equal opportunity to study want they want. Both those who study sciences and humanities have a role to play in the development of our country. However, government can find other ways to incentivize both learners and teachers that is not seen as discriminatory. For examples, learners, will want to study courses that lead to employment with higher pay. Their parents and/or guardians will push them to that too. But if they see doctors striking every day for poor pay, they will not see any reason why they should spend many years in medical school instead of doing something else. If we can’t pay our doctors enough money to ensure they work in the wards and theatres, however much we pay science teachers won’t have any impact on medicine for example. If kids go to university to study mechatronics engineering and there aren’t enough organizations willing to take them on for internship or offer them jobs after graduation, they will encourage their peers not to do the course. If they think the opportunities are in trading crypto, that is where they will go. If they see social influencers living the life, that is what they will want to do. The reason many parents of years ago wanted to see their kids become doctors, lawyers and engineers among other professions was because they had seen how those who studied such lived their lives. Parents always want the best for their children. Although paying science teachers is important, paying humanitiess teachers is as important otherwise a time will come when we are now oversupplied with scientists at the expenses of humanities. Both sciences and humanities need each other. And for now, a major crisis looms if we don’t get the kids back in classrooms regardless of what they are studying. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2025

Out to Lunch

#OutToLunch: An effective public transport would shut out road fines complaints

By Denis Jjuuko On 21 November 2023, the Kampala Capital City Authority (KCCA) issued a procurement notice for “Consultancy Services for the Detailed Design Update of the Bus Rapid Transit System (BRT) for the Greater Kampala Metropolitan Area (GKMA)” after receiving “financing from the African Development Fund towards the cost of the Kampala City Roads Rehabilitation Project (KCRRP).” The notice further indicated that “the main objective of the assignment is to review and update the detailed designs for the BRT system that were prepared in 2014 to reflect current and expected travel needs in Greater Kampala Metropolitan Area (GKMA)”. That was probably the nth time such an advert had been published. Given our procurement bureaucracy and the speed at which we do things, probably the consultant has never been hired or has not gone very far in “reviewing and updating” the detailed designs. You will notice that in 2014 or 11 years ago, this work was done. And of course, it wasn’t implemented. During Jennifer Musisi Ssemakula’s tenure as executive director of KCCA, we were even promised cable cars. Many years later, not even a cable has been installed. Had all these plans been implemented many years ago, the government would not have been struggling to implement the so-called intelligent transport management system also known as the punitive road fines. A BRT system that works would have reduced traffic congestion on Kampala roads enabling motorists to drive within acceptable speed limits to reach their destination on time. One of the reasons people tend to speed is because they are catching up with time lost in traffic. Somebody who takes two hours to complete a 5-10km route that leads them to the Kampala Northern Bypass or the Entebbe Expressway will push the gas pedal once they get on any of those roads. They do so not because they are reckless but because they need to be somewhere at the right time. Government officials especially ministers understood this and many of them got themselves lead cars. That way they can manage the traffic gridlock in Kampala faster and reach their destinations on rare occasions on time! They know driving at 30kph is not practical without an effective public transport. Although a car is an ultimate dream for many Ugandans, the major reason people drive is because of the unreliability of public transport in Kampala. That is why during school holidays, many people park the cars and use public transport. There has always been an argument that Kampala roads are narrow to create BRT lanes and such. If you removed street parking, lanes would be created for buses and emergency vehicles. By emergency vehicles I mean emergency vehicles such as ambulances and fire trucks. Not everyone with a luxurious SUV. Spaces can easily be created on dual carriage roads where overpasses could be created for the BRT and even the light rail transit system. In fact, in many cities, there are sections where trains and buses use the same infrastructure. Toll stations would then be created so private cars entering some parts of the city are heavily charged thereby pushing people to use the BRT and other public transport means. Since there would not be street parking on some roads and there would not be a need to drive to the city, entrepreneurs would be encouraged to invest in public parking near stations where people can leave their cars when getting onto the BRT or trains. Or even in Kampala for those who insist to drive. Uganda would stop losing a lot of money in wasted working hours and improve Kampala’s air quality thereby reducing the cost of healthcare. In fact, many people will become healthier as they walk from their work places to the stations to catch a bus or train. Effective public transport is one of the ways to make a city modern. And it isn’t out of this world. Cities like Dar es Salaam have tried it and it is somewhat working. Uganda already has the buses at its Kiira Vehicle Plant in Jinja. Why not put them to use? Then after implementing this in Kampala, trains could be extended to other major cities. If we had trains to Kasese and Packwach a few years ago, why can’t we have them now? We usually claim that there is no money. If we can cut down on some of the excesses in public administration, we would be able to achieve these things easily. We can also issue infrastructure bonds and encourage Ugandans and others to participate in them. Eliminate corruption and briefcase companies from winning tenders and we are good to go. If the majority people used an effective public transport system, nobody would argue about excessive fines on Lugogo Bypass. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2025