#OutToLunch Ugandan businesses should join Centenary in Malawi

#OutToLunch Ugandan businesses should join Centenary in Malawi

By Denis Jjuuko

In the early 1983, the Catholic Church in Uganda set up a scheme that targeted the majority of Ugandans — folks in rural areas, the majority of which were unbanked. Ten years later, the scheme turned into a commercial bank that still largely caters for the same target market. Centenary Bank has evolved to the behemoth that it is today with millions of customers and nearly 100 branches countrywide.

But that is not news to anybody reading this. What could be news is a story that for some reason has gone largely unnoticed. Centenary has acquired another bank in Malawi, signaling the start of a new phase in its life.

We must note that Centenary isn’t the first indigenous local bank or business to venture out of the country. Greenland Bank, in its short-lived life had opened in Zambia and Tanzania. The BMK Group also owns a hotel (Hotel Africana Lusaka) in Zambia among other business. The Mandela Group owns four branches of Café Javas or CJs in Nairobi. There could be other Ugandan brands operating in the region.

But Centenary, with Shs5.5 trillion in assets is the biggest of them all to operate outside the confines of Uganda’s borders. This is good for the country and many brands with the means should think of doing so.

For some time, we have been spectators in the regional market. We have watched Kenyan brands expand and grow their assets in the region even in countries like South Sudan and Rwanda that we helped pacify. As we have argued before, as we build roads and even deploy boots on the ground in the western jungles of the Democratic Republic of Congo, our businesspeople should be setting up companies there.

Africa has been described as the next frontier, with a population of 1.4 billion people, majority of whom are young and ready to provide the labour force required for big businesses. Ugandan businesses should not just be watching and sending congratulatory messages to Centenary, they should be following up to set up businesses in Malawi.

Malawi is politically stable having survived the thuggery of Kamuzu Banda. The rule of law seems to be established with even the supreme court brave enough to overturn a presidential election.

What businesses are viable in Malawi? Almost everything. It is a virgin market with even some of its printing done in the dim lit corridors of Nasser Road according to some accounts.

Malawi’s growth and development strategy outlines education, energy, agriculture, health and tourism as the sectors it is banking on to become an industrialized country by 2063.

With a Ugandan bank now taking centre stage in the country’s financial sector, Ugandan businesses have a brand that can easily access them credit. Centenary can simply do due diligence here and lend to a business that would like to expand in Malawi.

But the businesses here shouldn’t be in a rush. It has taken Centenary a whopping 39 years and an asset base of trillions to make its first move beyond its Ugandan comfort zone. They have experience in dealing with the rural poor and have enough resources to take on risks. They have an ownership model that has proved successful, using the structures and loyalty that people have with the Catholic church to provide a springboard for their success. It is this model they are somewhat basing on as the church is also its partner in Malawi.

Structures are important and a Ugandan brand without such structures wouldn’t be able to succeed in another market. We have seen of recent some very sad news where a brand previously thought to be successful collapsing within a year of the founder’s death. Newspapers have been advertising the company’s assets for forced sale (including those of the children who had assumed directorships).

By establishing structures, companies would be able to scale at home and even abroad. I don’t think there is still an employee or even a non-executive director that was part of Centenary’s founding in 1983 that is still involved. The company has been able to grow beyond its founders.

The current managers and non-executive directors I am sure are aware that they won’t have to die in their offices unless if they suffer sudden death. They will have to hand over the company to its next leaders for further growth. That is a key lesson for all Ugandan companies.

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

Tags: Centenary Bank, Denis Jjuuko, Greenland Bank, Out to Lunch, Prime Time Communications, The BMK Group, The Catholic Church of Uganda, The Mandela Group

Out to Lunch

#OutToLunch: Africans will continue seeking western citizenships unless governments act

By Denis Jjuuko Many years ago, I decided to go out of the country for my graduate education which lasted about 18 months after which I came back to Uganda. Upon my return, I found myself, like most young people, unemployed. I went to visit a family friend whose children live and work outside Uganda. When I was leaving her home, she told me what I heard many people had said about me but not to my face. Why did I come back? I should have found a way never to return to Uganda to be unemployed. Many people will say oli musiru or you are naïve if you had a chance to run away from Uganda and didn’t take it. It isn’t just in Uganda but in many parts of Africa. That is why athletes participating in international sporting events are known to “disappear” into thin air instead of returning once the tournament is over. They rather become illegal immigrants doing odd jobs (kyeyo) than returning to the dusty streets of African capitals. Many students at graduate schools never return to the continent. Some become career students as they look for opportunities to remain in those countries. West Africans rather die trying to walk the breadth of the Sahara Desert and then jump onto ricket risky boats to cross into Europe than remaining at home riding boda bodas. The few times I visit Entebbe airport, the biggest number of departing passengers I see are young women dressed in abayas and hijabs walking in a choreographed pattern on their way to the Arabian desert to do domestic work. They are happy to finally land a job. If you engage many of those returning to Uganda, their ultimate dream is to find a way to Europe, America or Canada. People of means have been known to fly their pregnant wives to give birth in America or other developed countries where citizenship is guaranteed upon birth, which the current US president wants to ban. He also wants to create a system where people who have the money can buy the US citizenship or permanent residency. If he did that, many wealthy Africans would pay for it. Already, people in Uganda pay hefty sums to conmen promising them US visas and green cards. One time, a visa officer at one of the embassies of the western powers said that many applications arrived with fetishes. That is when paper applications were still the norm. Once some people got the forms, they took them to their traditional healers for blessings. That is how desperate many people are for western visas and permits. Given what people do to get the visas, if the world’s biggest plane arrived at Entebbe airport and said they are taking the first 850 people to arrive to Europe or north America for free and they would be granted citizenship, you would be shocked by who would line up. There would be chaos as the big people try to jump the queue or have their spouses, children or grandchildren be the ones to go. That is why there was pandemonium when parliament didn’t approve some people appointed to ministerial positions due to their possessions of dual citizenships. Many promised to renounce the citizenships of other countries while another turned to theatrics. I highly doubt many people would renounce their western citizenships to serve as cabinet ministers beyond sending an email to some officers somewhere. Many ministers and government officials are the ones who largely send their wives and daughters to give birth in America. They encourage their children who they send to the west to study to remain there until they have processed the paperwork that may lead to citizenship or permanent residency. Publicly, they may renounce the western citizenships and even hire social media influencers to make their case but deep down, they prefer western passports. That is why they acquired them in the first place. They know the benefits of western citizenships. African economies celebrate remittances from their people in the diaspora with fanfare and many are happy to create policies that send their youths to the gulf states to work even though they sometimes publicly denounce those who seek to go and work there. Western citizenships are largely sought after by Africans for economic reasons. What about creating opportunities and an environment here on the continent? If we did, there wouldn’t be many people doing whatever it takes to become western citizens in the first place. The writer is a communication and visibility consultant. djjuuko@gmail.com

June 24, 2026

Out to Lunch

#OutToLunch: English soccer fanaticism provides opportunities for business

By Denis Jjuuko The European soccer season is finally over after reaching its crescendo the other weekend with the Uefa Champions League final in Budapest. The soccer faithful are now bracing themselves for the FIFA World Cup that is kicked off yesterday in Mexico who will co-host alongside USA and Canada. Here, national teams will compete for the world’s biggest soccer prize. Given the time difference, expect emotions running really high late nights and early mornings. Soccer is the world’s most popular sport with an estimated 4 billion fans globally. Stars of the game like Diego Maradona and Pele (now both deceased) are even worshipped in their respective countries (Argentina and Brazil) and in many parts of the world. Current soccer gods, Lionel Messi of Argentina and Christiano Ronaldo of Portugal have hundreds of millions of followers all over the world. It will be both their last World Cup. Messi won it the last time the tournament was held four years ago. Ronaldo is looking forward to add it on his ever-growing list of achievements. In the regular season, the English Premier League is the most popular one in Uganda and indeed many parts of the world. English clubs particularly Arsenal, Liverpool and Manchester United have millions of followers in Uganda. When Arsenal won the premiership title at the end of the season last month, its fans went hysterical. Church events were organised. Concerts were held. People matched several kilometres in mock trophy parades. Rival fans trolled Arsenal. Arsenal fans shot back. Memes were created. The banter has been in high gear. Some of the people trying to be different after watching huge crowds of Arsenal fans in several African capitals wondered why the people were celebrating a foreign team. They called it colonialism. Some of the loudest voices were journalists including those working for media houses that push for western hegemony. Such people argued that Africans must develop their own games or stop worshiping colonizers. Anyway, the globalization of the media (including social media) and the marketing capabilities of European leagues have made European soccer a must watch for many. It is easier to find a TV showing an English soccer match than a Ugandan one. The money involved also means that the development in terms of infrastructure and talent is many centuries ahead of countries like Uganda. Sometimes, a live match involving humans resembles a computer game in execution. The aesthetics of the English Premier League is hard to ignore. But after watching these huge crowds, one wonders what could be done? How can entrepreneurs in countries like Uganda tap in? There are millions of fans, who are so committed to their clubs and they remain faithful even when the titles are elusive for decades. Looking at the sheer numbers of Arsenal fans in Uganda and Kenya, one could tell that they were wearing counterfeit replica shirts. Indeed, very few fans in East Africa can afford a Pound Sterling 140 (approximately Shs711,000) shirt before even shipment and taxes. And many small shops sell these counterfeits for as little as Shs30,000. What if someone negotiated a deal with these clubs to make replica shirts that are affordable for countries like Uganda? The shirts would probably be Ugandan or African themed to make them a bit different from what they sell in Europe and elsewhere. Most fans would love to buy them because they would know that these are original shirts meant for the continent. The franchise owner would of course work with law enforcement to ensure cheap counterfeits aren’t shipped in. And then for those who can afford the European ones, could order from the franchise owner. Other merchandise items could be also be shipped in using the same concept. Soccer is best watched among peers and fans. At home, to the chagrin of most spouses especially the female ones, it can be boring. Rival fans can also be good to troll as the match goes on—those brave enough to go to a bar where they aren’t in the majority. Imagine an Arsenal, Liverpool or Manchester United themed bar? Fans of the particular club would be sure to catch the game on large screens in a friendly atmosphere. One of the challenges of Ugandan bars that show matches is inconsistence. You sometimes find them flipping channels trying to make everyone happy especially when several matches are being played at the same time. Some fans end up leaving to find a place where their team’s match is being shown. A themed bar will dedicate the club’s matches regardless of the opposition. They would also not be playing loud music when 95% of the people are watching soccer instead of commentary. Menus such as cocktails could be club themed as well. Betting company could sponsor some matches and parties. A loyal clientele could be easily established thereby guaranteeing good returns for the investor. The writer is a communication and visibility consultant. djjuuko@gmail.

June 24, 2026

Out to Lunch

#OutToLunch: Surging bank profitability offers critical lessons for small businesses

By Denis Jjuuko It is that time of the year again when commercial banks publish their financial results in the newspapers as part of fulfilling the regulations that govern them. Most of them have registered year on year increases in profitability, lending, deposits and total assets among other metrics. If you only read the commercial banks’ results and made conclusions on the economy, Uganda’s economy is in such great shape. All the commercial banks combined made more than Shs2.1 trillion in profits according to the figures they released. That translates to nearly US$6 billion. The shareholders must be smiling all the way to their banks. Those who haven’t invested in commercial banks, must be wondering how to get in. The good news is that several of these banks are listed on the stock exchange. A big chunk of the money banks reported to have made came from their loan books. It isn’t entirely surprising since the interest rates they charge are some of the highest in the world. Anyone who charges upwards of 16 percent in annual interest should be able to grow every quarter, half year and annually. But I think the steady growth in commercial banks profitability comes at the expenses of other sectors of the economy. Assets of defaulters on these commercial bank loans were advertised on the opposite pages of many of the results of the banks. One hand gives, another takes, isn’t that what we have always been told? However, there is no need to begrudge banks. They aren’t entirely responsible for the high interest rates in the country. The capital requirements to start a commercial bank are prohibitive and those who recently failed to meet them were downgraded to lower tiers. Also, the government borrows at such high rates giving banks carte blanche to charge similar and even higher rates. Those who borrow and default are also many. Banks tell us, lending to Ugandans is high risk. Probably it is. I believe you know somebody who castigated you for depositing money on their mobile money account on which they had renegaded to pay back. Anyway, what can we learn from the financial performance of the commercial banks? There many lessons especially for businesses. Commercial banks just like other big business that publish their results such as telecoms have one thing in common — repeat long term customers. When you sign up for a loan such as a mortgage, you commit to pay back for such a long period. If you borrow for say 10 years, the bank is nearly assured of making money from you for 120 months. Should you fail, they have a property you gave them as collateral to get their money bank. Some of the costs they incurred to sign a customer were a one off. And if you are a disciplined borrower, they almost incur no other costs to recover their money. Long term customers who pay periodically are a goldmine for any business. Unless otherwise, many people don’t change their bank accounts. So even those who don’t borrow, there is some monthly or usage fees they pay. A bank is therefore assured of income. Telecoms make money the same way. How many times have you changed your telephone line? Many people don’t change their telephone lines. That means that a telecom is assured of making money off you until you die. Repeat long term customer at its best. Even when you die, sometimes the family keeps the line so that there is some continuity especially for those involved in doing business. As small businesses, it may not be easy to have an assured customer for 10 years or a lifetime so there is need for them to work hard to attract repeat customers. It means improving the product all the time and constantly marketing so that customers can return regularly. Commercial banks and telecoms do that all the time because if they don’t, customers can move to other banks and telecoms respectively. There is a need to observe how they market, what they do to retain their customers and try to copy that even when small businesses don’t have unlimited budgets. The writer is a communication and visibility consultant. djjuuko@gmail.

June 5, 2026