admin – Page 4 – Prime Time Communications

Out to Lunch

#OutToLunch Movie studios could be a good investment bet for Africa’s rapidly urbanizing population

By Denis Jjuuko About 25 years ago, Ugandans switched on their television sets for only a couple of hours a day. The country had one television station which was switched on from around 4.00pm and broadcasting ended by midnight. Television was largely public service broadcasting, euphemism in Uganda at the time for boring television. Then 24-hour television was introduced and pay TV for those who could afford came in. We are perhaps in what one would call today the third revolution of television with streaming gaining ground. Smart television sets can enable people watch all sorts of stuff as long as they have an internet connection. It is not uncommon to find a few people gathered in front of a smartphone at their local joint watching car racing or soccer. Dramas, films and such other stuff are now watched over the smartphone by young people as they commute from one place to another. Netflix channels are becoming increasingly popular and even DStv now has internet platforms. Amazon, preparing itself for a showdown with Netflix and other internet streaming providers recently acquired MGM, one of Hollywood’s most iconic movie studios. DStv’s Pearl Magic has been snapping up content to sell to its African subscribers. Africa is the world’s most urbanizing continent with a young population that is growing up on the internet. As the internet becomes readily available and affordable, content will increasingly be consumed from internet connected devices. Gone are the days for waiting to return home to watch TV. A family sitting in front of the TV set is no longer as common as it used to be. Although TV sets are still the main centre pieces in many urban living rooms, it is common to find every person in a home on their mobile devices consuming all sorts of content. Already, traditional media companies are strategizing on how to have their content available on smartphones. Many have come up with “digital, mobile first” and “digital, mobile only” strategies. The question for every media executive is on how to turn the skyrocketing internet subscribers into consumers of their content. Africa being a young population, entertainment is going to play a key role in the lives of many. Content that is entertaining to these young people is going to be immense. It is a matter of time before Amazon, AT&T (which owns Time Warner), and Netflix among others start looking at content for the continent. Instead of sending in content from Hollywood, there will be increased demand for content that is relatable and in languages and accents that people understand. Hollywood movies are mainly watched in Africa with translations due to accents that can be difficult for people to grasp. So if good quality content in languages or accents people can understand are widely available, why would one watch American ones? Most Uganda content creators do so on low budget given the market and sometimes like the guys of Wakaliwood use poorly made props and effects to produce content. This means that there is an opportunity for long term investors with an eye on the future to invest in studios from which Africans can tell their stories. I actually think that entrepreneurs like musician Akon instead of promising to build mega cities, movie studios would provide better returns on investment. Instead of the government providing him with one square mile of land to build a city, it would make more sense to build a studio. A square mile is just 640 acres and a city on such a small piece of land I believe won’t make so much sense. But a studio on the same size would be enormous to create real jobs while developing the performing arts sector. Studios in Africa also make sense because we already have a lot of stuff in place that are ideal for producing entertainment. The weather is nearly perfect throughout the year. The scenery in most parts of Africa is actually great for movies whether war or adventure ones. The lives many Africans live is actually content for movies that could mesmerize the world. We just need to train people to tell these stories in the most compelling way possible. But also we can invest in studios where people who want to make movies and create content can come to film or even sit and write scripts. With many unemployed people, it will be easy to find actors and extras albeit with some training. Already, many people aspire to become celebrities so this shouldn’t be so difficult to find talent. The writer is a communication and visibility consultant. djjuuko@gmail.com

August 23, 2021

Out to Lunch

#OutToLunch Parliament, graduation and the opportunity for entrepreneurship

By Denis Jjuuko Last month, newly elected Members of Parliament took the oath of office at the parliamentary building in Kampala. Save for the elbowing co-wives and the clown from Arua, there wasn’t so much else. The majority of MPs and their relatives were elegantly dressed and they rocked the red carpet in the way it should be. I hope that the quality of debate will be as elegant as the dresses. However, something else caught my eye. Many of the MPs turned up with children below the age of 10. Since many of these MPs didn’t look like grandparents, I will assume that these were their offspring. The spectacle at parliament reminded me of some statistics that were being widely shared before MPs took oath. A recent population projections report by the Uganda Bureau of Statistics (UBOS) showed that 56.7% of Uganda’s population is below the age of 20. While those between the age of 20 to 29 represent 17.8% of the population. The MPs themselves largely fall in the age group between 30 and 50, which is 17.7%. No wonder many turned up with their offspring toddlers. Given that many of the MPs will see a significant increment in their monthly income over the next five years, many will be giving birth to a few more children. Besides MPs taking the oath, my social media timelines were filled with beautiful photos of young people in celebratory mood having been awarded academic certificates at the latest graduation ceremony at Makerere University — the country’s premium academic institution. Most of these young people are looking forward to a future that can enable them live the lives that they have been promised — study hard, graduate and everything will be fine. It used to be fine in the 1960s and 1970s. Today, these young people need more than academic certificates. The beauty though is that many of them will try as much as possible to get themselves where they want to be whether as maids in the Middle East, boda boda riders in Kampala or part of the government bureaucracy. Some obviously will end up as MPs. A young population as Uganda brings many challenges for the legislature and executive as they must find the jobs for those graduating and services such as education and healthcare for the children. This doesn’t mean that those who are above 50 should be ignored. MPs must not just look at themselves as they have largely done before. They were elected by young people to represent them and it is incumbent on them to think about the country first as the oath they took implied. They should also not forget that over the last few elections, the majority of MPs aren’t re-elected. The chances of being one-term MPs are high. As the arms of government grapple with those challenges, these statistics present opportunities for entrepreneurship. I know that the majority of the population live in abject poverty but there is a number that could afford certain services if priced right. Entrepreneurs should think about services that can attract this population group because 80.7% of the population is below the age of 35. If you started a business today, you can find affordable labour that is easy to skill given the number of people graduating. This can be a springboard for profitability and future growth. Government can use the numbers to attract foreign direct investment. Those interested in long term investments could think of the category that was graduating last week (age 20-29). As these people find the elusive jobs, they will most likely start by “dusting themselves” of poverty. They will go for expensive brands to show that they have arrived. Entertainment will boom and there will be little left for investment. The time for seriously thinking about investment will come when they are about 35 and above. When they have children of their own and some dreams long discarded as reality checks in. If you, therefore, invest in stuff that the middle class will need in 10 years, you will make a killing if you are a long term investor. Sectors such as housing, education, and transport will be necessary as these people become middle class. As they become middle class, another group between 40 and 60 which is 10.8% of the population will be either retired or retiring. They will have some retirement benefits that as an entrepreneur you may tap in. The writer is a communication and visibility consultant. djjuuko@gmail.com

August 23, 2021

Out to Lunch

#OutToLunch Climate smart interventions will protect our investments

By Denis Jjuuko I recently visited one of the ‘resorts’ on the shores of Lake Victoria. It used to have a sand beach with grass thatched canopies where the resort’s patrons sat and sipped cocktails with exotic names. Revelers in bikinis used to roll in the sand in the name of sunbathing. The lake waters seemed far away and provided beautiful backdrops for those taking selfies without sophisticated filters. About a year ago, torrential rainfalls washed away the sand beach leaving wooden canopies almost submerged. The patrons, when I visited only sat far away from the water, watching a lonely fisherman on a canoe, where the beach used to be. You probably remember seeing images of the owner of a popular Munyonyo bar accessing his premises in an old fridge disguised as a boat. Whenever it rains, Kampala’s roads get flooded creating unprecedented vehicular traffic. However, it isn’t only Kampala with such problems. Roads in many parts of the country have been washed away by rainfalls disrupting travel and other activities. Culverts and bridges have been washed away. About a year ago, the Packwach bridge over the Nile was impassable because of rising waters, technically cutting off West Nile from the rest of the country. This week, I heard stories of somebody who woke up in the night, grabbed a basin and started a tedious job of fetching water from his bedroom. Storm water had found its way into the house. He should thank his lucky stars for being a light sleeper. There was a joke last year that a renown Kampala businessman was the luckiest man alive — he could catch fish from his living room. This was after his palatial home on the shores of Lake Victoria was submerged in rising Lake Victoria waters. The torrential rains and rising waters are partly a result of climate change. Our planning and implementation at all levels, therefore, should include climate smart interventions to protect our investments and most importantly lives. Would a culvert being built today be able to contain increasing water flows during its planned lifespan? How will harsh weather conditions affect a newly built road? These infrastructure projects cost lots of borrowed money. Today, newly built infrastructure such as docking points for ferries are being submerged by rising waters on our water bodies disrupting businesses and becoming risks for travelers. In Kalangala and Bukakata, passengers have to remove shoes to access the ferries or walk a tightrope on curbstones. Uganda is rapidly urbanizing with one of the world’s fastest growing populations. The pressure on land is massive while at the same time urbanizing areas generate tons of solid waste. Most of this waste isn’t properly disposed of thereby blocking drainages and leading to flooding of urban areas. Urbanization in poor countries is a known cause of informal settlements and slums where climate smart interventions are hard to implement. This is set to increase the spread and burden of diseases on individual households and the public. Greater Kampala where new housing estates are being haphazardly planned is a disaster waiting to happen. These housing estates have been left to private sector players to develop. To maximize revenues, they are parceling out land and creating slums for the ‘middle class’ at unprecedented levels. The estates haven’t been designed with climate change in mind with narrow roads and zero spaces for drainages for storm water. Many perimeter walls being built around houses today won’t be able to last for long given our lack of planning for harsh weather events like torrential rainfalls. The circular economy is partly a solution to solid waste management. How can we re-use and recycle most of the stuff we use? Our homes are generating a lot of waste which can be used for biogas production. But like you saw recently in a trending video, the rich have no problem driving their fancy cars and stopping somewhere to drop domestic waste by the roadside. Poorly managed solid waste is not only blocking water channels, it is polluting the air that we breathe. Already Kampala has one of the worst air quality in the world. An increasing population is going to make it worse. Electric vehicles and mass transit systems are part of the solution. At individual, community and government level, there is need to build climate resilient cities by putting in place intervention that can mitigate climate change and its effects. The writer is a communication and visibility consultant. djjuuko@gmail.com

August 23, 2021

Out to Lunch

#OutToLunch A factory in every town will complement the markets that have been set up

By Denis Jjuuko In Soroti, in an area full of shanty buildings with rusty iron sheets stands a majestic building that could be mistaken for a modern shopping mall. The architecture is quite impressive for the town’s (or is it city) standards. As I wonder who could be putting up this shopping mall and whether Soroti can sustain such an investment, my eyes land on the signage. It is the market being built by the government of Uganda. I am actually impressed. I have been to many major towns or cities where such markets have been built but the Soroti one stands out. Not in size really but in ‘modern’ aesthetics. The government must actually be commanded for such markets. Vendors won’t have to suffer selling stuff in filthy conditions. Rain is no longer an issue as it previously was. Customers now have parking and such other amenities. I hope that those responsible for these markets will take great care of them. These markets are mega in size and in some towns like Moroto, they really stand out as the biggest building in the area. This means that the government didn’t spare any coin in building them. However, when you visit these markets especially in parts that aren’t dealing with fresh produce and vegetables, you realize that most of the stuff being sold are imported. If we can build markets this big, we can also build factories. In all major regions of the country, there is a product that can be made. This depends on what the particular region is known for. This would add value to the products, give them a longer shelf life and create thousands of jobs in each region. Young people wouldn’t have to think that they have to migrate to Kampala to make it in life. Businesspeople in upcountry towns won’t have to think like many of them do now that to become truly successful, they must own something like a hotel in Kampala. Since we import stuff as easy to make as tomato sauce, we can add value to these products and reduce imports while at the same time earning more from exports. The government simply needs to identify and focus on one major factory per a region or even town. When you get to have major factories in a particular area, other businesses actually are set up to either feed that factory or to make complimentary products that factory needs. Factories also need spare parts, service and maintenance so entrepreneurs in machining and milling will set up shop. One major factory in a town would lead to unprecedented development in the area. Housing, education, entertainment and recreation, health care, financial services and even super markets would set up. Instead of the mega markets that have been built selling imported stuff, they would be stocking lockly made products. The farmers would have better returns on their harvests since there would a be factory taking their produce. Traders wouldn’t be so worried about selling their stuff before they go bad. Young educated people wouldn’t be lining up in queues that stretch a mile at the Ministry of Internal Affairs to get passports so that they can become maids and nannies in the Middle East. They would remain and work here at home and gain invaluable skills. There aren’t many skills one gets in being a house maid. Yet some of the factory workers and their managers as well as entrepreneurs would look at the factory’s value chain and invest in smaller factories, creating more jobs. Logistics businesses such as transporters would also grow moving raw materials to the factory and then taking out the final products to the market. The markets in their current form are good and necessary but they should be complimented by government setting up major factories in the regions so that traders stock less of what is imported, give farmers more value and create a value chain that would significantly lead to development. The writer is a communication and visibility consultant. djjuuko@gmail.com *Photo of Moroto Market

August 23, 2021

Out to Lunch

#OutToLunch Katikkiro Mayiga’s focus on people paying off

By Denis Jjuuko Soon after his appointment as Katikkiro on this day in 2013, Owek Charles Peter Mayiga traversed the vast kingdom to see first hand how the majority of Kabaka’s subjects were fairing. Many of the people of Buganda had given up on life, folding their arms and having no qualms about their state of affairs. This was not going to turn around their fortunes. In private conversations and public speeches, Mayiga talks about poverty as a challenge that needs to be solved. Nothing is as shameful as poverty, he usually says. Yet as he crisscrossed the kingdom he was now in charge of as Kabaka’s most senior lieutenant, he saw how enthusiastic people were to embrace his projects and support them from the little they had. However, the statistics were not good. Uganda’s Robusta coffee exports were slightly over 500,000 bags of 60kg a year. More than 65% of Robusta coffee from Uganda is grown in Buganda. He had grown up with a father who grew coffee and his school tuition partly paid by the sales from coffee. How could a region known for coffee not be growing it? Many farmers had given up and selling land to do other stuff considered most lucrative. Young people were happy to spend a day sleeping on their newly acquired boda bodas as they waited for elusive customers. He knew that after some internal realignment, creating a smaller but efficient government at Mengo, his legacy wouldn’t be entirely in glass paneled buildings like Masengere or even endless perimeter walls on tombs. He knew that the Kabaka as modern as Ronald Muwenda Mutebi is can’t preside over a kingdom of extremely poor people. His thoughts run back to his childhood, seeing how his father looked after a large family with proceedings mainly from coffee. If it worked then, it must work now. With other kingdom officials and working with the Uganda Coffee Development Authority (UCDA), he folded his sleeves, wore gumboots and went to work. The reward has been immense. According to UCDA, in February 2021, Uganda’s Robusta exports stood at 500,685 bags of 60kg each with revenues of US$40.9m. What Uganda used to export annually, it now does in a single month. “The increment of Robusta exports is on the account of fruition of the newly planted coffee,” says the UCDA Feb 2021 monthly report. Overall, Uganda’s annual coffee export market (March 2020-Feb 2021) amounted to US$511.21m from US$74.9m in 2013, the year Mayiga assumed office. Although Arabica coffee is more valuable, Robusta is the dominant Uganda coffee type. Mayiga’s Emmwanyi Terimba (grow coffee) campaign is largely responsible for these new numbers. Mayiga didn’t stop at coffee. He reenergized the Kabaka Birthday Run that attracts pre-COVID crowds of upwards of 50,000 people. The proceeds directly go to people. Many women including non-Baganda suffering from fistula simply turned up at Kitovu Hospital in Buddu for free surgeries and treatment. The next target was sickle cell disease, where the kingdom purchased millions of test kits among other stuff. Today, the focus is on HIV/AIDS given that the Kabaka is UNAIDS’ goodwill ambassador on HIV/AIDS. Working with Habitat for Humanity, a global brand known for building houses for the vulnerable, the kingdom has been able to build houses for the very poor. Five houses are now complete and have been handed over to the poor. Twenty houses are under construction this year alone. Kampala’s housing deficit isn’t only for the extremely poor. Many of Kampala’s dwellers, as beautiful as you see them on Kampala Road, live in squalor conditions. Decent housing is out of reach for many. The deficit stands at 550,000 and estimated that in 20 years, the national housing shortage will stand at 8 million units. Of these 2.5 million will be in urban centres. Kampala’s shortage will have doubled to one million units by then. Although it may sound like a drop in the ocean, Mayiga and his team have embarked on an affordable housing estate in Ssentema, on the outskirts of Kampala to change this narrative. A one-bedroom house is going for a jaw dropping Shs58m, previously unheard of in Kampala. More than 100 units have so far been built with many under construction. Similar projects are planned in Mpigi and Masaka. Before that, he had decided to launch Ekyapa Mu Ngalo, a campaign to turn unregularized tenants on Kabaka’s land into landlords with leasehold titles. Mayiga’s focus on the poor has also seen him using the stage he has to advocate for human rights and good governance. He is almost a single voice on this. This has attracted all sorts of attacks from many centres. Some see him as too critical of the establishment while others argue that he isn’t critical enough. Unknown to many, that is exactly what Mayiga intended — a kingdom that isn’t in the armpit of any politician. The writer is a communication and visibility consultant. djjuuko@gmail.com

August 23, 2021

Out to Lunch

#OutToLunch Buvuma Island is the next frontier for long term investors

By Denis Jjuuko Traffic is building up as many people mill around the shores of Lake Victoria. A few boats are back to the landing site with the night’s catch. Traders from Kampala and Mukono are haggling for the best fresh fish. Those who are happy to have made a good bargain smile in anticipation of huge profits. A boda boda man is trying to fit a Nile Perch, the size of a teenager, on his motorcycle. It is Kiyindi in Buikwe District. Kiyindi is a landing site on the shores of Lake Victoria and the main gateway to Buvuma Islands. It is located a few kilometres off the Mukono-Njeru road. When the Jinja Kampala Expressway is constructed, as long as there is an interchange somewhere, Kiyindi and by extension Buvuma Islands will be very near to Kampala. By ferry, Buvuma is approximately one hour from Kiyindi. A new ferry is being built by the National Oil Palm Project (NOPP) of the Ministry of Agriculture, which will further cut the duration of the journey by about a half since it is said to be bigger. For many years, Buvuma has been a backwater district devoid of any meaningful development. The main economic activities have been small scale fishing, hand hoe-based subsistence agriculture, and charcoal burning. All this is changing as growing of oil palm is being extended there. Pathways have been graded into motorable roads and many people are now being employed in growing oil palm. There is unprecedented enthusiasm on the main island. Recently, the government has been buying land from willing sellers to establish the oil palm project, the second after Kalangala District. Before the growing of oil palms, an acre of land cost approximately Shs500,000. That figure has since grown to averagely Shs10m for prime land following land acquisitions by the government for the oil palm project. With household incomes set to grow and given the infrastructural developments in the area, Buvuma is the next frontier for those looking for long term investment. Buvuma, like many islands, boasts of kilometres of pristine sand beaches which could be developed into resorts, recreation centres, and/or holiday homes. Oil palm estates like in Malaysia and Indonesia can also provide another tourism attraction if packaged well. Palm oil is the most versatile vegetable oil in the world with many uses. But unlike Kalangala, Buvuma is so near Kampala and Jinja with a lot of potential for long term investors. Proposed infrastructure in terms of road and water transport will make it an island to die for. Investors could acquire land, a key means of production, when it is still affordable. Once electricity is generated, piped water extended, new docking areas built and factories set up for palm oil production, the prices will skyrocket. The government’s efforts to create a sustainable business on the island means that Buvuma District’s 90,000 population will have a lot of income. Unlike most other crops, oil palm trees are harvestable every 10 days once they reach maturity at about four years. A single tree lasts upwards of 25 years. The oil palm industry which is native to sub Saharan Africa is one of the major economic activities in Malaysia and Indonesia — the world’s leading producers of palm oil. Buvuma’s potential isn’t only in real estate and recreation. Banking and financial services, education, health and transport are among other sectors that are going to blossom. Factories to produce final products from palm oil can easily be set up. Leaders on the main island where oil palm project is being set up now need to embark on a campaign to change the mindset of the youth. In many parts of the country that are urbanizing, many young people simply want to fold their arms and wait for deals. They have watched a few people in Kampala that come on the scene driving fancy cars and throwing around money and they think that is the way to go — waiting for a big deal instead of working hard. As oil palm trees mature, households involved will demand for better standards of living. So, they will need better houses, cars, fashionable clothes etc. The youth of Buvuma who may not directly work in the oil palm sector should now acquire technical skills to provide the services. They can become mechanics, masons, fashion designers, electricians and beauticians among others. The writer is a communication and visibility consultant. djjuuko@gmail.com

August 23, 2021

Out to Lunch

#OutToLunch A generation of smartphone holders who can’t google is a danger to businesses

By Denis Jjuuko One of the most important discoveries of our time, is the internet. A resource that we use today to make our lives better in almost every aspect. It is perhaps the second most important discovery after fire. It has made many things possible. One needs acres of space to exhaust how the internet has made this life possible. From transferring money from one part of the world to another making e-commerce possible and cutting the costs of doing business significantly. But since the creation of the world wide web in the late 1980s, one of the most significant innovations has been the ability for people to search for information. In the modern era, search engines have been perfected to provide us with all the information we need on almost anything. People’s needs whether looking for information for academic research or buying some sweet corn, search engines provide this information at our finger tips. This is what has made Google a powerful tool and turned its parent company, Alphabet, the world unicorn that it is. Needless to say, that its founders have turned out as some of the wealthiest people in the world. Google with all its powerful algorithms doesn’t charge its users for search fees. All you need is an internet connection and bingo! Of course, you must have the ability to discern what is correct and what is not because search engines simply index information from millions of websites including fake ones. Of course, there is some effort to remove certain sites like those that promote terrorism from these search engines but largely any form of information you need is there. We live in the era of the smartphone, another very important tool that enables anyone to publish news whether fake or not. However, the most worrying trend in Uganda is the inability of diploma and degree holders to search for information to make right decisions. Sometimes a PhD holder in Uganda and a cart pusher peddle the same information without any ability to determine whether the news is fake or not. This is one of the reasons we in Uganda are poor — the inability to discern the information that the internet throws our way. Many Ugandans are easily conned by 419 scammers who promise them to have won lotteries they have never registered to participate in. Others lose money through pyramid scams that have been written about in other countries. This is a result of mainly our inability to search for the right information. If our businesses must grow and survive, we must fully understand the search element of the internet. Searching for opportunities and understanding the partners that we want to do business with. But if we can’t ascertain a business opportunity from a scam, we won’t be able to grow. Search engines can lead us to opportunities including new innovations. But do we know how to find this information? To separate it from the genuine and the one that isn’t so? When you look at how quickly Ugandans take in to conspiracy theories which all of them can be easily debunked through search, then you know that our businesses are in trouble. It may sound weird but our syllabuses at a certain education level should teach people how to search for the right information and perhaps that will help people make critical decisions based on the right information. Based on the information highly educated people spew on social media platforms, it is rightly possible that they are making decisions in their workplaces based on unverifiable information. This is going to make many businesses lose money. If a well facilitated highly educated employee who has access to internet cannot use search engines to verify information or even make a few calls but simply tweets whatever comes their way, how are they making decisions for the business? In Whatsapp groups of university graduates is where most misinformation is shared by people in critical managerial positions. How are these people managing the people below them? How can a university graduate with 20-30 years of working experience be so reliant on information that they can’t verify when they own a smartphone with data? Business owners and those at the highest levels must deliberately find ways to empower their workers so that they make decisions based on the right information. If you see somebody in a workplace Whatsapp group sharing all the fake news, know that they are making wrong decisions for the business. The writer is a communication and visibility consultant. djjuuko@gmail.com

August 23, 2021

Out to Lunch

#OutToLunch: Reintroduction of annual car license is counterproductive

By Denis Jjuuko There are new tax proposals for the next financial year that have caught the eyes of many. One is the introduction of a 12% tax on internet bundles. Apparently, the Over The Top (OTT) tax charged on social media isn’t that successful. Either the number of people who use social media had been exaggerated before the tax was introduced or there are many people using Virtual Private Networks (VPNs) to bypass the tax. But I guess everyone who is in the business of tax collection knows that for one to realize significant revenues, it must be easy for people to collect the tax in the first place. Once a tax is cumbersome to collect, the collector will face serious hurdles in doing their work. Also, people will naturally use such hurdles to dodge paying the tax. Yet the proposal to scrap the OTT tax I thought had taught our tax collectors some important lessons. In the same documents seeking to scrap the OTT tax, there is a re-introduction of the annual vehicle license. Many years ago, the tax collector rightly argued that collecting annual license fees from motorists was cumbersome and there were many loopholes. The right thing, the argument at the time went, was to put this tax on fuel. So every time you fueled the vehicle, you paid your annual license fee. This tax was easy to collect. It was cheap to do so as well. Instead of putting road blocks to check if cars had valid annual licenses, the tax collector simply ensured that petroleum companies remitted the money. There are fewer petroleum companies than vehicle owners and they risked being banned and their assets sold if they didn’t comply. Previously, many annual license certificates were made on Nasser Road while some people comfortably bribed those manning the road blocks. Although there is technology now to ascertain whether a license is genuine or not, I believe that Uganda doesn’t have the resources to enforce this kind of tax collection at the moment. Many vehicles on Ugandan roads aren’t road worthy or don’t even have the proper paper work like third party insurance but they freely move on the road. Many people in Uganda don’t have driver’s licenses. The police simply can’t fully enforce this. Uganda Revenue Authority’s law enforcement won’t be able to monitor the roads for valid annual road licenses. So if collecting OTT where technology can easily be deployed to enforce it has failed, how will the annual vehicle license be collected? Will the levy on fuel be scrapped? Or it is a case of double taxation? What has really changed over the last few years since it was scrapped that now it is important to put it back? How much will the government spend on collecting this tax? There was a time when telecoms charged monthly service fees. They realized that this was a barrier to entry for many users and scrapped them. They still charge us service fees but we don’t notice it as it is embedded in the airtime fees we pay. That way, they have been able to significantly grow the number of users. There aren’t very many vehicles in Uganda. There are less than 500,000 units. Outside a 100km radius of Kampala, you hardly see any cars on the road. The reason Kampala has a lot of vehicular traffic is because we don’t have public transport to write home about. The roads are potholed and narrow creating an impression that there are many cars in Uganda. On average each private car in Kampala carries only two people. Transport is a key factor that facilitates economic growth. The re-introduction of annual vehicle licenses will increase the cost of doing business thereby impeding other areas that URA should be keen to tax. When the cost of doing business is high, there are reductions in the income taxes that URA will be able to collect. Workers’ earnings will be cut thereby creating low purchasing power. With low purchasing power, the economy will shrink and the tax collectors will realize less taxes. The government’s efforts, therefore, should be on growing the economy and widening the tax base not to overtax the same things such as vehicles. Government should be interested in seeing that we have an effective urban public transport system that can reduce the expenses of workers so they can spend their savings elsewhere on stuff that keep factories running and shops open. The writer is a communication and visibility consultant. djjuuko@gmail.com

August 23, 2021

News

Ministry of Energy and Mineral Development prioritizes participation of Ugandans in development of the Oil and Gas sector

By Sierra Ruth Arinaitwe The Ministry of Energy and Mineral development Uganda has established the policy provisions for national participation through which Ugandans have been prioritized to partake in the development of the sector. This follows the sector’s move to the development and production phase of the commercial quantities of oil which were discovered in the Lake Albert basin. This phrase involves activities such as engineering, procurement and construction of the different infrastructure that is required for the production and commercialization of the crude oil. According to Robert Kasande, the Permanent Secretary of the Ministry of Energy and Mineral Development (MEMD), national participation of Uganda will be maximized through three main ways including “provision of goods and services by Ugandans, employment and training of Ugandans and technology transfer to Ugandans.” Kasende made the remarks was speaking during the 7th Annual Oil and Gas Convention, which was held virtually due to the ongoing lockdown as a result of the second COVID-19 wave in the country. The policies state that Ugandan entrepreneurs will be given chance to provide goods and services to be used during the production and commercialization of the crude oil in the Lake Albert basin. Section 53 and 125 of the upstream and midstream Acts states that; “the licensee, their contractors and subcontractors are required to give priority goods and services provided by Ugandan citizens and registered entities owned by Ugandans.” The regulations ring-fenced a number goods and services that can only be provided by Ugandan citizens and Ugandan companies. Among these include; transportation, security, foods and beverages, hotel accommodation and catering , human resource management, office supplies ,fuel supply, land surveying, clearing and forwarding, locally available construction materials , civil works, environment studies and impact assessment, communication and information technology service, waste management and crane hire. The policies also state that there will be provision of employment and training to Ugandans. Sections 54 and 126 of the Upstream and Midstream Acts provide for “training, recruitment and employment of Ugandans in all phases of petroleum activities taking into account gender, equity, persons with disabilities and host communities.” Kasande explains that the regulations require that Ugandan citizens are given priority for employment in any petroleum activity executed by any licensee. Kasande notes that to ensure successful implementation of the policy provision of national participation, there will be need to effectively implement the available policy provisions within the existing policy, legal and regulatory framework to foster national participation. He as well called upon collaboration and coordination among the key stakeholders to efficiently implement the policy provisions to ensure maximum national participation in the oil and gas industry, establishment of industry collaboration forums and development and application of a holistic approach to measure and monitor national content.

June 24, 2021

Out to Lunch

#OutToLunch Women empowerment should be handled by Gender not Local Government

By Denis Jjuuko There is a belief in the finance world that if you want to give poor people loans to develop, you selectively go for women in groups. Women, once they receive loans, are not known to splash the money on a much young sexual partner or buy stuff they don’t need such as luxury cars. Motherhood especially in Africa teaches them the discipline needed to survive. Unlike most men, the majority of women think about their children before they commit crimes. If you are to default on a loan and sent to prison, who would look after your children is always a constant thought. So they ensure they put money to good use so they pay back their loans. On a general scale, group women enterprises have a higher rate of survival than those of men. However, women face many challenges that exclude them from entrepreneurship. Their harvests are usually taken over by men who sell and use the money as they wish yet it’s women who till the land in the first place. Collateral needed by financial institutions is hard to come by. In many parts of Uganda, women don’t inherit land from their parents because in our patriarchal system, women are said to belong to the families where they get married. Yet their in-laws always look at them as outsiders thereby leaving them without the means necessary to acquire capital to do business. But also, Uganda like most of Africa, is known for high interest rates on loans because the risks to lend are so high. Many businesses on this side of the world don’t celebrate their fifth birthdays. Doing business is relatively new in Africa compared to other continents so in most families, entrepreneurs are in their first generation without much mentorship. Short repayment periods are another challenge. Many times, when you borrow money today, you are expected to start paying it back at the end of 30 days when the business itself hasn’t even started. However, I recently came across some interesting statistics and some weird news as well. I will start with the good news. The Ministry of Labour, Gender and Social Development started a women entrepreneurship fund some time back. They give money to groups of between 5-15 people. The money being loaned is from the government so it doesn’t accrue interest although if the payment period exceeds a year, an annual 5% service fee is charged so that the fund grows to support other women. The beauty of this fund is that you only start paying back when your business starts generating income. For example, a group of women in Kibuku who export cassava gari and tapioca to West Africa was given money to buy equipment. They started paying back when they started exporting not when their machinery was still being fabricated. In the last few years, the ministry has given out Shs23 billion and women have returned more than Shs19 billion according to a report. This represents a high repayment rate of 86.2%. A Bank Lending Survey Report for the fourth quarter of 2018/19 by the Bank of Uganda put the default rate in commercial banks at 60.7%. I will not go into the figures for 2020 due to disruptions caused by COVID-19. The Shs23 billion had been disbursed to 13,000 groups thereby benefiting nearly 170,000 women directly across the country. Some groups can get as much as Shs12.5 million. Some of these groups are growing into formidable businesses and have built the capacity to now deal with the commercial banks for expansion. These small loans have enabled them to learn the ropes of doing business like a group in rural Kasese which now sells crafts on eBay and exports to Europe and North America. The weird news I referred to is that even after registering this success, instead of expanding the fund so more women benefit, the government is considering moving the fund to the Ministry of Local Government. Apparently, money must now be managed at the parish level, creating an unnecessary bureaucracy and a layer that may facilitate corruption. Issues such as women empowerment should be dealt with by their respective ministries. There is no need to, for example, the Ministry of ICT to do the work of the Ministry of Finance just because they built the national information backbone that Finances uses to do its work. The Local Government ministry can interest itself in ensuring that parish level monitoring takes place not necessarily to manage the fund. The writer is a communication and visibility consultant. djjuuko@gmail.com

April 7, 2021

News

Farmers in Buvuma applaud oil palm project

By Sierra Ruth Arinaitwe Joyce Namusobya has been a subsistence farmer based in Bukagali village on Buvuma Island for as long as she can remember, using her land to grow food for consumption. She couldn’t even utilize all the land she had. She didn’t know what to do with most of her land. That is however set to change. “I recently sold part of my land, receiving Shs17 million for two acres as a compensation from the National Oil Palm Project,” she says. “I used the money to buy another piece of land elsewhere and also bought cattle to diversify my income and also get some organic manure,” she explains with a measure of pride in her voice. Namusobya isn’t a lone figure on this island with such a story. Nasim Nangobi, a farmer in Kikongo village, says that she was paid Shs7 million for her three acres of land. “I used the money to buy another piece of land for myself,” she says. “We have been growing food crops just to eat at home. But by growing oil palm, we are going to be able to make some money and live better lives. We have been educated that if you own some land, it is wise to use some of it for oil palm growing and the rest for food crops like maize as we have always been doing,” she said. For the first 3-4 years before oil palm trees are ready for harvesting, farmers like Namusobya and Nangobi could actually utilize 100% of their land for food production through intercropping. “Intercropping ensures that farmers have food as they wait for their harvests. Once the harvests come in and as oil palm trees mature, then they have money to use to pay for their other needs,” explains Wilson Serunjogi, a farmer and the sub country chief of Nairambi in Buvuma. Charles Kalule, another farmer in Bukagali village concurs. “My land was surveyed to establish the acreage after I had been sensitized and agreed to sell some of it for the oil palm project. After I agreed to the value, I was advised to open a bank account where my money will be deposited,” he explains. When Kalule receives his money, like other sellers he will also get 30% on top of the value of his land as a disturbance allowance. “I am going to improve and uplift my family’s standards of living by building a better house and use the rest to improve my income,” he says. It is not only farmers who have sold land that will benefit from the project. Many youths are already employed in the nursery bed on four hectares where 1,944,000 seedlings are being prepared for planting this rainy season. Today, 154 people majority of whom are residents of Buvuma Islands are employed by the nursery bed. “We have the alternative livelihood programme that we are implementing in Buvuma where we are imparting residents with other skills. We know that not everyone will be working directly in the oil palm project,” Connie Magomu Masaba, the Project Manager of the National Oil Palm Project explains. Oil palm growing in Buvuma will be established on just one island out of 54 utilizing approximately 7,500 hectares out of more than 22,000 that constitute this particular island leaving the rest of the land for food production among other activities. In Kalangala, the first area where commercial oil palm growing has been established, smallholder farmers’ incomes have grown significantly since they collectively earn approximately Shs2.9 billion every month. Oil palm trees are perennial crops which take 3-4 years to mature after which they are harvested every 10 days for 25 to 30 years thereby providing steady monthly income to smallholder farmers. They yield 8-10 times more than other vegetable oil crops such as sunflower and soybean. This means oil palm provides more returns on investment to farmers than many other vegetable oil crops. Following that success in Kalangala, NOPP under the auspices of the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) with funding from International Fund for Agricultural Development (IFAD) decided to expand oil palm growing to other areas starting with Buvuma with an aim of rural transformation. To that effect, NOPP has been able to compensate over 7,400 tenants and landlords so far. Compensations continue as more willing sellers come on board after the ongoing sensitizations and land valuations. The RDC of Buvuma Godfrey Tilutya described this development as a “golden opportunity” which is going to transform Buvuma. “The project has already started creating employment opportunities and income generating opportunities for the residents of Buvuma. The people of Buvuma are going to benefit further as in the long run, the project comes along with better roads, improved health centers, better schools, and guest houses are going to be built which will lead to economic development of our area,” he said.

March 26, 2021

News

Technology and Development Enthusiasts Impressed by Kiira Motors Vehicle Plant

By Sierra Ruth Arinaitwe Kiira Motors Corporation hosted a team of technology and development enthusiasts who experienced the comfort of the luxurious Kayoola Coach during their ride to the Kiira Motors vehicle plant currently undergoing construction at the Jinja Industrial and Business Park. Upon arrival at the plant, they were welcomed by Kiira Motors CEO Paul Isaac Musasizi with whom they had a rich engagement about the automotive industry and its contribution to Uganda’s development agenda. They were taken on a guided tour of the plant. Tusiime Samson, a team leader at Veritas Interactive Uganda said his view of Kiira Motors was always based on a misconception which always clouded his judgment about the corporation. “I had always been skeptical about what Kiira Motors is doing. This trip has been really informative and given me an insight of what is intended to transpire at Kiira Motors vehicle plant,” he said. “I am really impressed by the direction Uganda is taking in the automotive industry and the fact that Uganda has talent to manufacture products like the Kayoola Diesel Coach.” Tusiime further stated that engagements with the Kiira Motors CEO and the visit to the plant informed him about what is on ground, what has always been communicated about Kiira Motors and as well rule out the misconceptions he had about Kiira Motors. Daniel Bwambale, a judicial officer who also works at the Uganda Legal Information Institute said he always had questions whether Kiira Motors was simply “another Ugandan story.” “My main reason for this trip was to prove that there is a plan, if the plan is under implementation and that the plan would come alive and not just die just like many other plans have died out in Uganda,” he said. Bwamble referred to Kiira Motors Corporation as one of Uganda’s good stories that people should be told and with it, he believes that Uganda can do more. Another automotive enthusiast and IT professional engineer with Yo Uganda Ronald Sebuhinja, says his main concern was to get a sense of scale of what Kiira Motors really does. Sebuhinja says it was unclear to him what Kiira Motors is doing when it comes to vehicle manufacturing. “Visiting the plant gave me a clear plan of what is done at Kiira Motors and an idea of what will be done once the construction is complete and is in use.” “I was really impressed by the human resource who have knowledge of whatever transpires here most especially by the speed and execution of work by NEC ( the construction company) who have been able to do such amazing work in a short period of time and am sure they will meet the deadline,” he said. David Birungi, a Public Relations tutor at the University of Nairobi who also works with UMEME said before, he was a bit skeptical as he thought importing cars gave Uganda an advantage over manufacturing here. “After this trip, I have come to understand the Kiira Motors story and this has completely changed my thinking about Uganda’s automotive industry,” he said adding that he looks forwards to coming back to witness how vehicles will be built. Jeremiah Ahumuza Birungi, a 12-year-old pupil at Kampala Parents School who was also the youngest enthusiast said he was looking forward to vehicles made in Uganda. “I am impressed by the progress of the plant. I can’t wait to see how it will look like once its complete,” he said. The first phase of construction of the Kiira Motors vehicle plant is slated to be complete by this. Upon completion, it will be the new home of Kiira Motors Corporation from which it intends to build about 22 cars per day and about 5000 cars per annum.

March 22, 2021