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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.

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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.

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Kiira Motors Vehicle Plant Nears Completion

By Sierra Ruth Arinaitwe The Kiira Motors vehicle plant is nearing completion with 75% of the construction work complete. The plant, which sits on 100 acres of land in the Jinja Industrial and Business Park includes the assembly building floor, warehouse area, site circulation roads, water and power reticulations, parking areas, perimeter fence and gate facilities. The construction contractor National Enterprise Corporation (NEC) said during the site visit over the weekend that they will be able to meet the deadline, which is slated for June 2021. Maj. Arthur Kyoffa, the head of electrical works at NEC says the general structural progress is now at 75% and is confident that by June 2021, they will have met the client’s expectations. “At this point, most of the super structural work is almost done. We are now mainly looking at the internal and external finishing to the building. We are sure that the plant is going to be ready by June and we are going to deliver to the expectations of our client,” Maj. Kyoffa said. Upon completion, the plant will be the new home of building buses in Uganda.  Allan Muhumuza, the Director Marketing and Sales at Kiira Motors says the plant will have the capacity to build about 22 cars per day and about 5000 cars per annum. Lydia Nakanda Mugoya, the clerk of works at the site, says they had a few setbacks in the beginning of the project but amidst them, they were able to embark on the work. “In 2019, our biggest challenge was the weather. It rained almost every day which slowed us down. In 2020, we were also affected by the COVID-19 lockdown which resulted into delayed some activities. The lockdown also interrupted the importation of some construction materials but we are positive that we shall meet the client’s deadline,” she said. Kiira Motors Corporation is a government owned initiative aimed at creating the automotive industry in the country. The country has so far built three production ready buses with two of them fully electric for city mass transit and an internal combustion one for long distance travel.

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Ministers urge private sector to invest in making parts for the automotive industry

By Sierra Ruth Arinaitwe Kiira Motors Corporation, a government of Uganda and Makerere University initiative has taken concrete steps in the development of an indigenous motor vehicle industry with the near completion of the Kiira Vehicle Plant in Jinja. The Minister of Science, Technology and Innovation, Dr Elioda Tumwesigye, hailed the progress Kiira Motors has made so far saying it will provide an unprecedented opportunity for promoting value addition to Uganda’s minerals and other natural resources with the view of import substitution and export promotion of vehicles, parts, components and systems as well as automotive engineering services. “Import substitution is something we need to work on. Uganda motor vehicles are the second leading valued import with over USD 450 Million annually after petroleum at USD 1.3 Billion. Imagine if we made these vehicles here?” Dr. Tumwesigye noted. Dr Tumwesigye made the remarks while opening a multi-sector meeting on building of an indigenous motor vehicle industry at Kiira Motors’ vehicle plant construction site in Jinja. The meeting was presided over by Joy Kabatsi, the State Minister for Transport who represented her boss, Minister of Works and Transport, Gen Edward Katumba Wamala. Prof Nawangwe, the Makerere University Vice Chancellor and Edward Hightower, a global automotive engineer and executive also attended the meeting. Dr Tumwesigye explained that with the market for vehicles growing at 12%  year to year and estimated to reach over 630,000 vehicles sold in the East African Community annually, it is of paramount importance that Uganda puts in place the relevant policy interventions for promoting automotive local content participation while placing emphasis of enhance environmental stewardship. “Invest in the automobile industry. Form companies that make parts, we can make these parts from our raw materials so that 70% of vehicle parts are done by independent suppliers. If you don’t invest, we will get the parts from elsewhere,” he advised. The minister further added that strategic government investment in the Kiira Vehicle Plant is expected to create over 14,000 jobs directly and indirectly; catalyze upstream investment in the manufacture of auto-parts from bamboo, steel, banana fiber, etc.; while affirming Uganda’s commitment to enhancement of local content participation as an enabler for industrialization along with enhanced environmental stewardship. On her part, Minister Kabatsi said that Uganda believes that the automotive industry is a catalyst for industrial development. “The government will continue to support your efforts to create an indigenous automotive industry. I will continue to support your development,” she pledged. She too urged the private sector to get involved in the local content value chain by making parts.

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Greenhill Academy Kibuli Hosts 1st Virtual Candidates’ Dedication Service

From creating a partnership with GS Virtual Learning to keep students engaged online while schools were closed due to the COVID-19 pandemic, to organizing various online meetings and webinars to keep parents engaged, Greenhill Schools is no doubt one of the institutions that has embraced technology and managed to successfully maneuver the effects of the COVID-19 pandemic. The school’s creativity and adaptation to technology was further showcased during its first Virtual Candidates’ dedication service held on Sunday 14th February 2019 that saw various students and parents logging in to Zoom, Facebook, Twitter, YouTube and BBS Telefayina to view the well organized event. The Dedication Service which was streamed live at the school’s campus in Kibuli was presided over by Venerable Rev. Canon Fredrick Baalwa who was the main celebrant. Based on the theme; Trusting God Completely (Psalm 37:4-6), Venerable Rev. Canon Fredrick Baalwa urged the congregation especially the candidates to trust God despite the various challenges the COVID-19 pandemic may have brought their way. The lively service was led by the school’s staff choir; fluent Bible readings from Hordray Kansiime Tumuheki (P.7), Martin Kugonza (S.4) and Kobusingye Desiree (S.6). Tongun Emmanuel (S.6), Acen Manuella (S.4), Hanasaye Hannah (P.7) and Mark Kasana (P.7) all delivered memorable speeches on behalf of the candidates highlighting that although this was a different kind of year for them they are determined to perform excellently. The service was concluded by a speech from the Rector of the school Mrs. J.V Maraka who thanked the parents and staff for supporting the candidates and highlighted that the COVID-19 pandemic has challenged the school to adapt to technology which included having a different kind of dedication service this year. The rector continued to encourage the congregation to maintain standard procedures as COVID-19 is still very much with us. This 1st Virtual Dedication Service attracted not just the Greenhill Schools’ audience but beyond on the different media it was streamed.

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Kiira Motors Set to Produce 1,000 Buses in Uganda

Kiira Motors Corporation is working with reputable strategic partners to produce 30,000 Buses for the regional market, with 65% parts and components localized by 2030. This builds on the successful development of the Kayoola Electric and Diesel Buses built through technology transfer and utilizing the facilities and resources at the UPDF National Enterprise Corporation Luweero Industries in Nakasongola. Kiira Motors and the partners plan to produce and deploy 1,030 Buses by end of 2021, 50 of which will be electric. The initiative is aimed at modernizing public transport in the urban centers in Uganda and beyond, while building the indigenous motor vehicle industry through technology transfer and localization of auto parts manufacturing. Kampala and other Cities in the region have for decades faced challenges of road and traffic congestion, pollution, unemployment and under employment resulting into low fuel economy, poor air quality, low labour productivity, and compromised road safety. This calls for establishment of a robust integrated and inclusive mass transport system based on environmentally friendly transport solutions. Coupled with localization of capabilities to develop, make and sell vehicles and components, this provides an unprecedented opportunity for transforming the economy drawing on the demographic dividend of Uganda. The establishment of Mass Transit Bus Systems supported by the domestic manufacturing of buses and components for the regional market is consistent with Uganda’s aspirations and pathways to Vision 2040 outlined in the National Development Plan III and the NRM Manifesto 2021 – 2026. Specifically, (1) promotion of local manufacturing of motor vehicles; (2) establishment of an efficient, integrated, sustainable, safe and inclusive public transport system; and (3) promotion of environmentally friendly transport solutions. The above developments are projected to create over 30,000 jobs directly, 100,000 job indirectly, and catalyze investments by Micro Small and Medium Enterprise in the manufacture of motor vehicle parts. The strategic and long-term focus on electric buses for the cities further demonstrates Uganda’s commitment to enhance environmental stewardship.  

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#OutToLunch Any lessons from pine, vanilla and ginger growers for Hass Avocado farmers?

By Denis Jjuuko In the 1990s, there was a craze that took the country by storm. Everyone was going to become rich, extremely rich. All that one needed to do was to plant vanilla. People who longed to become billionaires cut down coffee trees, banana plantations, and put every effort in growing vanilla. The price was so high that vanilla crops are said to have been guarded by people with guns day and night. There were no taking chances. Of course, a few people became wealthy from vanilla before the price stabilized. The main reason for the price increment of vanilla was a result of a harsh weather event in Madagascar, the world’s leading exporter. When Madagascar was able to produce again in the numbers they do, the price stabilized. Even though vanilla’s price is still high compared to many other crops in Uganda, it also needs a lot of care that the get-rich-quick farmers are not ready to do. Frustrated and looking for the next big thing, something else would soon catch their attention. This time it was moringa, a tree said to have hundreds of health benefits. If you planted a few moringa trees, you would kiss poverty goodbye for life. Your grandchildren’s future would be secured, for real. Those who planted the tree were soon looking for buyers and they were not coming in the numbers expected. Some cut down the trees for firewood, thereby turning their dreams into ash. Another tree was to be introduced soon. One acre of pine trees would make one a billionaire. It is the world’s most wanted tree needed to make wood and its byproducts, we were told. Forestry authorities dished out land to those who didn’t even want. You earned everyone’s ear if you mentioned that you owned a few acres of pine trees. Lifetime savings and benefits for retirement were withdrawn and all invested in pine trees in preparation for living the life of billionaires. Others tendered in their papers for early retirement. Why suffer so much when you can plant a few trees and die rich? Soon the price of pine dropped. Supply exceeded demand. Like vanilla, pine is tedious to grow. It also takes a lot of time maturing at around 15 years (depending on species). Many of the retirees died before they became rich. Today, there aren’t many people talking about pine anymore. Owning them doesn’t raise eyebrows to most people. Less than five years ago, we were told that you would make unbelievable money if you grow just one acre of ginger. Last week, ginger farmers in Gomba, the media reported, told one of the presidential candidates that they will only vote in a candidate who promises better prices. A bag (100kg) of ginger fell from Shs800,000 to around Shs150,000. Although ginger intake has increased during this COVID-19 period, the prices have not gone up for the farmers. Today, you have probably received an email about Hass Avocado. “Hass Avocados mature after two years and a single tree can produce 3,000 fruits (500kgs). An acre requires 166 trees, which comes to 450,000 fruits. A fruit is sold at Shs550 which means that you will make Shs1,650,000 per a year per a tree. With just an acre, you will make Shs273.9m a year,” the emails and flyers read. The cost of planting an acre to earn all this money is very minimal, they tell us. Now, many people are growing Hass Avocado in preparation of making Shs273.9m a year per acre or even double if you do the export yourself according to the promoters who are mainly seedling sellers. If you want to be respected among your peers, mention the number of Hass Avocado you own and roll out the above figures. But have we as a country learnt anything from vanilla, moringa, ginger, and pine? Have we created a value chain for Hass Avocado? What will happen when the fruits mature and a lockdown happens and nobody can export? How do we minimize post-harvest losses which are one of the challenges we face in agriculture in Africa? There is a need to invest in value addition for Hass Avocado and its value chain so that people don’t make losses when five years from today, there will be more fruits on the market than people who need them. We can make healthier edible oil from it, juice, and even snacks, among others.   The writer is a communication and visibility consultant. djjuuko@gmail.com  

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#OutToLunch The government should dispense with pride and fully open the internet

By Denis Jjuuko Rachael and her husband live somewhere in New York where she works as a nurse. Before the COVID-19 pandemic disrupted the world, she used to come to Kampala at least once a year to check on her relatives and projects. Whenever she was in Kampala, she used to stay in hotels. After some time, she got tired of living in hotels with her young kids. She decided to build a block of six apartments on the land she had earlier acquired in Najjeera. When the apartments are done, her plan is to rent out five of them and keep the sixth for herself whenever she is around. Late last year, Rachael contracted Ibra, a skilled builder to start construction. Ibra and Rachael worked out a plan where he is paid per phase. Every day, Ibra calls Rachael on WhatsApp and updates her on the progress made. Using WhatsApp’s video call feature, Rachael sees what is happening at her site in real-time, makes inquiries on issues that may not be clear and approves changes, if any. This arrangement has been perfect for Rachael as well as for Ibra. On the site at any one time, about 30 young men and a few women earn money every day. The building material hardware owner has been very happy as the site’s progress means that his business has been growing. National Water has been collecting payments for the water used. The truck driver has been delighted supplying sand, bricks, and coarse aggregate, among other materials. Sarah, a widow and neighbour to Rachel over the last few months has been feeding the 30 young men and women with porridge in the morning and posho and beans mainly for lunch. She had never seen this windfall in a while. She has been walking with a smile of recent. However, Rachael has temporarily stopped the construction of the apartments. She is not sure what is going on at the site. She has failed to get the latest update on the site as Ibra cannot send images and videos to her. The internet has been off in Uganda for days. When it was restored, the government kept social media blocked. Rachael had wanted Ibra to download the Zoom app, which didn’t work as app stores are also blocked. Ibra is a skilled builder with many years of experience. However, the internet is not his thing. He reluctantly joined WhatsApp after he felt irritated by his children and now, clients like Rachael. Until Racheal can be sure of uninterrupted communication with Ibra, there won’t be money being sent. She wants to be sure she can do spot checks at any time of the day. She wants to be involved in every stage. Racheal’s forced decision to halt her apartments’ construction means that 30 young men and women are idle, without any work. Sarah has lost her business. The smile is gone. The truck guy is now stuck with his sand. The hardware owner’s stock isn’t moving at the speed it was. The mobile money agent where Ibra withdraws money has lost some income. Ibra is stuck too, looking for other sites. The sad thing is that Ibra isn’t Ibra and Sarah aren’t the only people stuck. Many people are. A woman who works in Owino and has been selling her second hand clothing using social media can’t do much anymore. She has no easy way to reach her customers. Traditional media is out of reach for her. Social media had eased her way of doing business. Now it is off. Apparently, the government is unhappy that a few of its fake accounts were deleted by Facebook and Twitter, at least according to the foreign affairs minister. However, the government’s decision to shut down the internet and social media is affecting it as well. The Uganda Revenue Authority is missing OTT tax targets and businesses failed to file their returns on time as well as sending out invoices. The telecom companies are missing money in terms of data and levies on mobile money transactions. The internet today has become as important as food, shelter and clothing. It is the way of life of many people. It is the way through which government, businesses, individuals, and large organisations do business. Due to COVID-19, businesses are struggling to stay afloat and the last thing they need is the internet and social media being off. The government should dispense with its pride and restore the internet fully so that Ibra and Sarah and the hundreds of people who were benefiting from Rachael’s construction site can work again.   The writer is a communication and visibility consultant. djjuuko@gmail.com    

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#OutToLunch Amazon and the culture of succession planning

By Denis Jjuuko Jeff Bezos, founder of the global unicorn that is Amazon, stepped down from the role of Chief Executive Officer to become executive chairman. Bezos founded Amazon in 1994 and built it into one of the biggest and most profitable companies in the world. After 27 years at the helm and USD200 billion letter in personal wealth, he decided to call it quits. He says he doesn’t have the time he needs to run this giant as he wants to concentrate on other interests, including charity. In doing so, Bezos is walking in the shoes of fellow billionaires such as Bill Gates who left the companies they founded in their prime to do something else. Bezos is just 57 years old. He could have stayed on for another 30 years but that is what we need to learn from these entrepreneurs. Like Bill Gates before him, Bezos will soon leave the role of executive chairman. He just took it up to ensure the Amazon stock doesn’t take a considerable beating, if he had decided to leave the company at once. It is part of transition planning. The main reasons these billionaires leave their legacy companies is not because they don’t have time or the drive to carry on. That is usually for public relations. The founders go because they want to create a culture of succession from one chief executive to another and see their businesses live on forever. The Americans and Europeans usually hand over the businesses to leaders who aren’t necessarily their relatives while the Asians mainly hand over to their offspring. For us in Uganda, we rarely want to hand over the business to anyone. Although we prefer the Asian model of handing over the company to the offspring, many do so without proper succession planning. A parent dies and a child who was not involved in the business at all and who has no experience running anything finds himself in the swivel chair as CEO and Chairman. That perhaps explains why companies that were household names just 25 years ago are now as quiet as a cemetery. The children who inherited them run them down as fast as they got them. Not because they necessarily wanted to but because they were not prepared to run the businesses in the first place. Instead of paying creditors, they buy a fancy SUV and install blue and red grill flashing lights to announce their arrival as the next big thing. The creditors take them to court and the next time you hear about them is when company assets are being sold on the cheap through auctions. Of course, not all Ugandan businesses have ended up that way. The Mulwana Group still stands successful many years after its founder’s death and the children and their mother seem to be doing a great job. The Madhavanis have been fine though last year there were some squabbles in the press over some assets. Succession planning shouldn’t be only for big companies. How do we ensure that small and medium enterprises can survive beyond their founders? The founders need to let go of many things including decision making to people they can groom and trust well in time. The guy who is replacing Bezos at Amazon had been at the firm since 1997, which makes him understand the business. He wasn’t simply parachuted into the CEO role. He had been running Amazon Web Services, the company’s cloud computing arm, which is one of Amazon’s most profitable divisions. Amazon as successful as it is, its founder could easily have claimed that he is the only one who understands its problems and challenges and therefore should be its CEO for eternity but he didn’t. He understood that his legacy, his company’s success will be determined long after he has stepped down. Given Amazon’s success, nobody was itching for him to leave but he decided that after almost three decades, the business needed new leadership. That is leadership. If we want our businesses to become as successful or even a quarter as successful as the Amazons and Microsofts of this world, the leaders must adequately plan for the day they won’t be there to run them. This should be done by identifying and grooming leaders and then stepping away when they can still offer advice to the new leaders.   The writer is a communication and visibility consultant. djjuuko@gmail.com   

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#OutToLunch Make MPs’ cars here to create a real manufacturing sector

By Denis Jjuuko One of the perks of winning an election for a Member of Parliament in Uganda is the amount of money deposited into their bank account before even work starts. To now fit into the honourable position of MP, the government gives them cash for a brand new car to facilitate their movement within the constituency and comfortably travel to Kampala, the seat of the national legislature. Because everything takes place in Kampala and some constituencies are incredibly remote, there shouldn’t be qualms with MPs get facilitated with a car that befits their status. After all, many people who don’t debate issues for the country get vehicles as well. The Minister of Finance has announced that he is looking for a whopping Shs165 billion (approximately USD44.9 million) for this. Media houses made simple calculations to mean that each MP will be receiving Shs320 million (app USD87,000). That is enough money for a brand new SUV although most MPs buy 16-year-old cars at a fraction of the money they receive. Many don’t even bother to buy a vehicle preferring to use public means between Kampala and their constituencies to save. One of the challenges the country is facing is youth unemployment. Uganda has one of the fastest-growing populations globally, with many people joining the labour market every year and unable to find work. The newly elected MPs know this very well because many campaigned on the platform of development, which in my understanding should mean creating jobs. They also saw first hand how poverty is ravaging the country as they moved from one village to another looking for votes. Many MPs will be receiving daily phone calls from constituents asking them to help connect their unemployed graduate children to jobs. Others will simply ask them to give them money. One of the newly elected MPs was seen with a 40-foot container during campaigns distributing knickers and sanitary pads. And this was in an area many people consider to be well off. If people don’t have one US dollar to buy a pack of sanitary pads (reusable ones are much cheaper), what else can’t they buy? Yet the Shs165 billion can create millions of jobs in the long run. Vehicles are the second-highest value imported goods after petroleum products in Uganda. They come in as fully built units (FBUs). This means that Uganda loses millions of dollars in foreign exchange each year importing vehicles. What about the government asking Original Equipment Manufacturers (OEMs) to make MPs’ cars here? The government would place an advert asking for somebody to supply SUVs to Uganda MPs with the condition that the vehicles would be made in the country. The winning OEM would bring in the car as either semi knockdown kits (SKDs) or completely knockdown kits (CKDs) and get a place to put the cars together. The government’s own Kiira Motors is nearing the completion of a vehicle plant in Jinja. The winning OEM could make the car from there. This would directly create many jobs by people making cars for the MPs, but most importantly, the country would create a significant mass of people with skills to make a car. Entrepreneurs would identify parts that they could easily make so that the OEMs don’t necessarily import everything. Plastic companies like Mukwano Group and Mulwana Group would easily make plastic parts. Steel companies would learn how to make the chassis. A car has on average 30,000 parts which are mainly supplied to OEMs by small independent suppliers. Within a few years, Uganda would develop an automotive industry that supplies parts to the global value chain on top of making cars here. We have most of the raw materials here. The government of Uganda, on average, buys approximately 2,000 vehicles every year. The private and development sectors buy more others. Imagine if they were made here. The UPDF makes some of its armed personnel carriers (APCs) here in Uganda. So if the army can make some of its vehicles here, why can’t we make cars for MPs and other institutions? The OEMs will partner with local entrepreneurs to develop our capacity same way Suzuki partnered with Maruti to create the iconic award-winning Maruti Suzuki in India. For the industry to kick off, this would also call for banning the importation of these old cars that are destroying our environment. Because there are many parts in a car, the parts suppliers that will set up here will make other things. Once a country can make a car, it can make anything. Make MPs cars here, and you would have a real manufacturing sector making all sorts of products in a few years.   The writer is a communication and visibility consultant. djjuuko@gmail.com   

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#OutToLunch Kiira Motors shouldn’t be selfish with Edward Hightower

By Denis Jjuuko An interesting report by the BBC titled “climate change: dangerous and dirty used cars sold to Africa” says 14 million used cars were exported from the US, Europe, and Japan between 2015 and 2018 and dumped in developing countries including Africa majority of which (80%) didn’t meet safety and environmental standards. There are about 1.4 billion cars in the world and the number is expected to reach two billion by 2040. Most of this growth is taking place in developing countries and emerging economies in Africa, Asia, and Latin America. In East Africa, the industry stood at 257,000 cars in 2015 and is expected to grow to 630,000 cars by 2030. Of these, brand new vehicles are about 15% while imported used vehicles stand at 85%. By importing these vehicles, we deny our young people the jobs they need to live meaningful lives. We have convinced ourselves that we can’t do big projects such as making cars — something that has been done for more than a century elsewhere. I have a friend who used to work as a teacher in a primary school in Kireka who made a successful US green card application and relocated to a mid-western state. Once there, she started looking for a job and within a month she had landed one and started working at a car assembly. She didn’t have any automotive skills and she had never worked in any factory before. Once she was hired, she received a one-week orientation on how to fix parts on a compact SUV. If a primary school teacher can be retooled within a week and she starts making 480 cars over an eight-hour shift, can’t that be done here and reduce the dumping that the BBC reported about? There are hundreds of graduates on our streets. However, there is a need to learn from the best and build structures and systems that can grow our nascent automotive industry. I learnt over the weekend that Kiira Motors had hired Edward T. Hightower as its automotive industry advisor. I follow Hightower on Twitter and had read some impressive reviews about him and his book, Motoring Africa. I was excited that somebody of his status can accept an advisory role in an ideally small start-up in Africa. Hightower, an engineering graduate of the University of Illinois at Urbana-Champaign and an MBA from University of Michigan Ross School of Business, has worked in several new-product design and engineering, strategy, brand marketing, and senior executive roles between Ford, BMW, and General Motors. He led GM’s $15 billion global crossovers business as the Executive Chief Engineer and Vehicle Line Executive, planning and developing the Cadillac XT5, GMC Acadia, Chevrolet Traverse and Blazer, Buick Enclave, Holden Acadia, and other platform variants. These vehicles are sold in many markets around the world. Hightower also served as Chief Engineer for Ford’s full-size SUVs – Excursion, Expedition, and Navigator as well as BMW’s Brand Manager for the 5, 6, and 7 Series models in the US. I believe his involvement with Kiira Motors will put a spotlight on our automotive industry and open opportunities for Uganda leading to localization in the manufacture of car parts and the development of the automotive value chain. Many investors in the automotive industry and emerging markets should be interested in what makes a global executive work with a small firm which is just building its vehicle production plant outside Jinja town. Global executives don’t usually just go for the money because they have names to protect and see opportunities that others don’t necessarily see. North America, Europe and some parts of Asia are already saturated when it comes to the automotive industry, so the growth like the BBC article alluded is right here in Africa. I hope that Kiira Motors won’t be selfish and make Hightower accessible to other entrepreneurs so that they (business people) can see opportunities in the automotive industry value chain. Even if you don’t believe in Uganda making cars, we already import many of them in the country and the region each year. These cars need parts but the majority are imported. The late James Mulwana learnt many years ago that the automotive industry is a key driver of the economy and invested heavily in his Uganda Batteries outfit. Today, I believe we don’t import as many car batteries as we would be had Mulwana not set up his business. Can’t we make wipers, brake pads, bolts and nuts, spark plugs, and the like? A car has on average 30,000 parts. Hightower should help us see these opportunities. The author is a communication and visibility consultant. djjuuko@gmail.com

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#OutToLunch The car industry is ready for the taking.

By Denis Jjuuko Cars are the second-highest value import in Uganda after petroleum products. It goes without saying that the majority of the petroleum products imported are used in cars, making the automotive industry one of the biggest in the country. In many countries, the automotive industry is a key actor in the economy where many independent small and large enterprises supply parts that put together to make a car. Cars also naturally use a lot of consumables once they are off the assembly lines — fuel and oil to grease the parts of internal combustion engines and many other parts. We saw during the 2008 economic meltdown that the United States moved swiftly to bail out their auto industries as they create millions of jobs directly and indirectly. With poor infrastructure and lack of reliable public mass transport, the automotive industry has enormous potential. Once many people in Uganda get a somewhat meaningful job, one of the first assets they spend their money on is a car — many times a fifth hand they spend more time under repairing than inside enjoying. A few years ago, I witnessed a transaction that amused me where somebody bought a very old car. The transaction took place in a famous restaurant in Kampala in the evening. The buyer came with about five friends and once he received the car logbook and keys, the party started. His friends high-fived and hugged him and all admired the car after which several drinks were opened and enjoyed. The buyer sat in the middle cross-legged, like a prince. You could tell his friends admired him immensely wondering when they will be able to achieve as much as him. One of their own had become “middle class,” he was now a “my car.” Young men tell me that these days girls of their dreams first inquire whether they have cars before they decide whether to date them or not. Once they own a car, the question of which car is also asked. I don’t know why one would be so interested in a car that doesn’t belong to them but I think I have heard that it is easier to cry in a car than on some ramshackle bicycle! A car isn’t just a means of transport; it is a status symbol. You may argue that we are exchanging values for possessions but that is the reality today. You have heard about washing bay workers in Wandegeya crashing their clients’ cars around hostels where female university students reside or those who thought they had landed on a young millionaire just because he had access to car keys. I remember during my university days, a young man who bought a car key and dropped it on the table the moment he sat down to create an impression that he had a car whereas he didn’t even know what a gear lever was. We always laughed at his theatrics. As long as people migrate from rural to urban areas to escape poverty and the cities or towns remain with poor public mass transport, a car will be one of the most important assets people will ever buy. We won’t be like in some countries in Scandinavia where a prime minister rides a bicycle to office. Ugandans also love buying and building their own houses which are now located 20km or more from their workplaces. Those who are joining universities today will live further away from the city. They will need cars to ease their mobility unless significant investments are made in public mass transport. The majority of the imported vehicles are very old and susceptible to frequent breakdowns, which creates massive opportunities. Uganda is also developing its automotive industry with the construction of a plant in Jinja nearing completion. With poor or non-existent mass public transport as mentioned above, Uganda’s automotive industry potential is enormous and due for disruption. Technology advancements in 3D printing and availability of machinery on the world market mean that an entrepreneur can start looking for opportunities to make some of the parts right here in the country. We have the raw materials and a market that is so huge and ready for disruption. What one needs is to think of ways to disrupt the industry as it is ready for the taking. The writer is a communication and visibility consultant.djjuuko@gmail.com

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