Government of Uganda .

#OutToLunch: Xenophobic attacks call for investments in home countries

By Denis Jjuuko In the early 1990s, the world started to witness the dismantling of one of the most antediluvian official racist regimes ever assembled. Nelson Mandela, leader of the African National Congress would be released from prison in 1990 after 27 years of inhumane confinement on Robben Island. A new South Africa was on the horizon. Mandela would win the country’s first multiracial presidential elections in 1994 after his ANC won a large majority of parliamentary seats. Mandela and his ANC’s victory marked the end of official apartheid in South Africa. Mandela mentioned from the beginning that he wasn’t replacing official white racism with official black racism. He called the new South Africa, a rainbow nation. A country that embraced you regardless of the color of your skin. Unlike the majority of the so-called revolutionaries, Mandela ruled for one term. He ended up as one of the world’s most revered statesmen and even became a celebrity! At home, after the euphoria of the 1994 elections, many black South Africans realized that the end of apartheid didn’t mean that they would move from their shebeens in the townships to white homes in leafy suburbs and take over white businesses and send the whites to wherever. South Africa wasn’t Idi Amin’s Uganda. They realized that the rainbow mantra meant co-existence. They rejected it but they were still a bit hopeful. The ANC understood the sentiments of many black people and created policies like black economic empowerment (BEE), which provided opportunities for blacks and other people of color. If a white owned a business, they needed some black people in top management and on the board. Some black people also needed to own shares. Government tenders were reserved for business that embraced BEE. But such opportunities were of course reserved for elite blacks — educated in Europe, America or even in the exclusive South African universities. The majority of the beneficiaries of BEE were ANC stalwarts and that is how they became billionaires and today’s captains of industries. Others became tenderprenuers (influencing government tenders). Apartheid had denied the majority of blacks quality education and other opportunities. They didn’t have skills. The apartheid regime preferred to import professionals from elsewhere to work in black communities or do jobs the whites didn’t want to do. That is how Ugandan teachers and medical doctors ended up in South Africa in the 1980s. They settled there quickly and established themselves as hard working, set up private practices and generally built better lives than many of those they left at home. South Africa had (still does) world class universities and when they opened up the country in 1994, many people started attending school there. I would also end up at an elite South African university 10 years after Mandela had been elected for my graduate education. South Africa was and remains the continent’s most sophisticated and largest economy. As economies of many African nations crumbled, South Africa’s soared. Many Africans unable to be externalized to America or Europe for kyeyo saw it as the next perfect frontier and arrived in droves. Many had seen the doctors and teachers who had migrated earlier living better lives. Those who visited Johannesburg, Cape Town, Durban or Pretoria saw a modern country where they wished to work and live. South African TV soap operas Egoli, Generations and Isidingo created a desire that many people wanted to experience themselves. Those who had made it to South Africa arrived back in Kampala every December with fancy cars and threw white-dress themed parties. Another Bantu migration of sorts had to happen but this time to kuyiriba (hustle) including becoming Sangomas (fake traditional healers). In South Africa, ANC riddled with corruption forgot to create jobs for the majority of blacks who were largely uneducated and unskilled. Populist politicians like Julius Malema saw an opportunity and fanned the flames that lead to today’s xenophobic attacks against blacks from outside South Africa. Hundreds have been evacuated back home in Uganda. They are now chilling in Kyankwanzi, ostensibly undergoing orientation. I am not sure what that means. But the xenophobic attacks should be a wake up call for migrants as well as governments of their home countries. People largely migrated to South Africa to find better opportunities for themselves. If we created jobs here, the majority wouldn’t have left. There must be a deliberate way to encourage migrants to invest back home. NSSF should be pushing them for voluntary savings. Capital Markets Authority should be doing drives for collective investments. National Housing should be building houses they can buy. Uganda Investment Authority should be making presentations on where to invest. It used to happen until when politicians hijacked platforms like the Uganda North American Association Convention. Buganda Kingdom is trying with its Buganda Bumu Convention but it is a drop in the ocean. If we refocused, people wouldn’t be evacuated or even deported and returned home with nothing. And lastly an enabling environment that enables businesses to thrive. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch: Skills and investment portal could help those fleeing xenophobia

Denis Jjuuko Just like that, we are already in the second half of 2026. Six months to the end of the year. Time really flies fast even when you may not be having a great time. The year kicked off with presidential and parliamentary elections in Uganda and a war in Iran that disrupted global economies. Skyrocketing fuel prices mean a tough economy for ordinary people. As if that wasn’t enough, an Ebola outbreak was declared in Democratic Republic of Congo (DRC) and a few cases in Uganda. Some countries reacted by banning Ugandans from entering their countries. Businesses and opportunities were lost. Covid-19 taught people that travels can easily be disrupted. Yet if you live in Kampala, you won’t tell there is any Ebola outbreak. Life as far as Ebola is concerned is normal. Anyway, a new government is now in place. More ministers than Uganda has ever had and a few acting ones, holding more than one docket. They have promised an economy that jumps from USD50-60 billion to a USD500 billion one annually. Government says it will do a lot of stuff to achieve this. Sometimes though, government is government. We pray to be alive to enjoy this. The end of the first half of the year in Uganda means the start of a new financial year. As you may notice, your fuel pump prices are going up as the government has increased the tax it charges on each litre of fuel. The fuel prices have been high already due to the closure of the Strait of Hormuz due to the war in Iran, now they will even be higher. Time to implement some austerity measures at home. Life is for the brave, not so? You probably made some resolutions at the beginning of 2026. Hope you have already achieved them or you are half way there. If you haven’t started on them, you can still adjust a few things. A clip on social media shows somebody whose goal this year was to buy a car but has easily added the letters p.e.t at the end of car to mean carpet. That is what he will buy. The car is out of reach now but the carpet shouldn’t be. Creative way of achieving some resolutions. Whatever resolutions you may have made, starting a new life in South Africa may have to be reconsidered. Ordinary black South Africans unable to find jobs have turned to other Africans who migrated there accusing them of depriving them of their apartheid inheritance. Some people have already lost their lives and/or properties. The government of Uganda is evacuating Ugandans facing xenophobic attacks in South Africa. Hundreds have been flown home already. They have had enough of it. I hope the government of Uganda has a plan for them upon arrival from the country that once had leaders like Nelson Mandela. Have the impending returnees gained any skills that can help Uganda drive the economy to the promised land of USD500 billion a year? Do they have some capital they would like to deploy? Those who have some needed skills could be linked to those who need them. A digital portal could be designed where they register indicating the skills and expertise they possess so those who need them could easily find them. Those looking for businesses to invest in could also do the same. Matching businesses with the skills and even capital is a necessity to grow the economy. The portal would of course not be for only those returning from South Africa but for all people to ensure inclusivity. I think some recently returned from Iran and there are always many returning from other countries as well. Millions of others are here in Uganda. They have some skills, but they don’t know how to reach those who need them. Many others have the required capital businesses need to scale but don’t know how to invest. That is how they fall to charlatans promising abnormal returns on investment. Of course, investing in other people’s business would require some sort of public oversight so that people don’t lose their money easily after investing but it shouldn’t be as difficult as going to heaven or listing on the stock exchange. A standard legal agreement or registration of this investment with a public entity like the Capital Markets Authority or Uganda Registration Services Bureau could help. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch: Africa must level up if the continent is to create a trillionaire

By Denis Jjuuko There was hullabaloo recently when the world’s richest man, Elon Musk, yet again launched another initial public offer (IPO) this time for his space exploration, satellite internet, artificial intelligence and social media company SpaceX. The IPO made him the world’s first trillionaire in US, not Zimbabwean, Dollars! It didn’t take long before the usual commentators in Uganda and elsewhere on the continent went into overdrive with many of them running out of superlatives in praise of Musk. Some owned him as an African, since he was born in South Africa while others blamed everyone else but themselves on the state of innovative companies on the continent. Why aren’t Africans developing AI products and companies, many wondered. Many people have probably tried but to scale them is difficult. Look at how many Africans have developed payment applications. In every innovative hub in Kampala, Nairobi, Lagos or Johannesburg, there are many people developing all sorts of payment apps but they remain relatively unknown outside the ecosystems in which they are being developed. Once in a while, a founder will get some funding and there will be some noise evidenced by billboards in various capitals featuring Nigerian musicians and once the rental fees are done, you will hardly hear about them. Until when they receive another round of investments. I have a feeling many founders’ dream ends at raising a certain amount of funding. Once they have money to pay bills, they sit and relax a bit. I hope I am wrong. But I wouldn’t blame many founders or entrepreneurs on the continent. Creating innovative products like building re-usable rockets or even AI applications that can be scaled requires enormous resources that are hard to realize. How many founders or entrepreneurs will refuse a job that pays money immediately to work on a product whose success can’t be easily determined? They need to pay bills and can’t always look on when their beautiful ex-girlfriends remind them that they couldn’t “eat potential.” Many American innovators have become successful because the government provides them tax breaks and subsidies. Elon Musk wouldn’t have been able to scale Tesla and SpaceX if he wasn’t receiving a lot of subsidies, soft loans and even contracts from the US government. How many African governments offer contracts to a start up? How many provide soft loans and subsidies? Nobody wants to do so. We easily run to Indian multinationals to develop simple things like an integrated website for tax collection. Had SpaceX or Tesla been founded on the African continent, most likely Elon Musk would still be operating in a shared space at an innovation hub at Ntinda Complex or Motiv around Bugoloobi. Unless of course if he knew someone who knew someone whose relative worked in the presidential palace. If he was lucky, he would have been given a flyer to borrow money at 10% payable in four years and he would need to be super lucky to actually get the loan amount credited on his account. Banks don’t look at you if you don’t have a statement that shows a lot of cashflow. I won’t talk about collateral today. That is why you find many people going to Guangzhou in China, bring in whatever that can fit in their checked in luggage, clear taxes, sale and repeat. A few trips over a period of 5-10 years and loan officers are knocking on their doors every day. By this time, the innovator at the innovation hub is most likely still scavenging for the next investor, prompting AI to design some fancy slides for the virtual seed funding presentation to potential investors. The investors listen, love the idea, but they are more likely to get their money back if they backed an 18-year-old kid working from his father’s basement somewhere in California. If they decide to invest in an African’s start up, it is very little money. The Africans who have some money don’t want to invest in “weird” things like space exploration or even AI data centres. They rather invest with a guy claiming to be rearing goats or keeping poultry as long as he promises a huge monthly return. The innovator capable of developing an AI product or a rocket sees the chicken guy rolling on Bandali Avenue in a Subaru with some bimbos and wishes he did the same. If he is a honest person, he would join those opening salons and boutiques in Kyanja Mall. No need to reinvent the wheel, he would console himself. I know that some African governments have funded some startups but they are really few and founders are usually well-connected people. Would an African stock exchange list a non-profitable start up? There is a need to level up to create a critical mass of innovators. If we do, once in a while we’ll have an African Elon Musk, Jeff Bezos or another Aliko Dangote. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

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

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

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Out to Lunch

#OutToLunch: English soccer fanaticism provides opportunities for business

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

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Out to Lunch

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

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

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Out to Lunch

#OutToLunch: Bank of Uganda’s small business fund good but….

By Denis Jjuuko Small and microbusinesses have always had issues of accessing capital either to grow or stay in business. Commercial lenders charge premiums and demand stuff that these small and microbusinesses can only dream of. In order not to sink, they usually stay off commercial loans preferring to remain small or turn to informal lenders if they really must borrow. Yet small businesses are the foundation on which economies are built. Collectively, they employ the majority of people in most economies. Look at the business near you, it is either small, medium or micro. The woman selling groceries near your home. The young man making street food. Your favourite boutique in the commercial complex near your office or even the eatery from which a young girl delivers food to your desk every lunch hour. It is perhaps under this background that the central bank decided to launch the small business fund (SBF). Of recent, the central bank has been advertising this facility. Under this fund, small businesses can borrow up to Shs500m at a maximum annual interest rate of 10% with a repayment period of up to four years. This sounds great. An annual interest rate of 10% sounds like manna from heaven in a market where the average rate is 20%. This kind of fund is designed to unlock the potential of small business and it is the right pathway for the economy to take. Access to capital by small businesses and individual entrepreneurs is one way through which Uganda can achieve its bold ambitions of being a US$500b economy by 2040. Currently, the country’s economy is around US$50b. Growing it by tenfold as the Ministry of Finance, Planning and Economic Development loves to proclaim nowadays is through strategic support to small and micro businesses among others. When the small businesses grow from a single employee to 10 or 100, that moves many people out of poverty. The Bank of Uganda must be commended for this step, at least for the idea. The challenge, however, with SBF is to find a bank that has this money or even willing to disburse it. The SBF brochure lists all the 21 commercial banks, 8 credit institutions, 2 microfinance deposit taking institutions and another 4 Saccos. When you contact most of these institutions, their staff will most likely feign ignorance or endlessly promise to get back to you which they don’t do. Sometimes, those which claim to have the money start changing goalposts halfway the application process. One of the promises they make is that they can get you the money immediately if you agree to forego the SBF and instead acquire one of their loans tailored for small businesses but at an annual interest rate of 20% or more. If you are desperate, this is most likely the road you will take. Remember, that application processes are not free. You have to pay commercial bank appointed lawyers and surveyors for verification and evaluation of the property or whatever will be acceptable as collateral. Usually, those lawyers and surveyors charge many times above the market rate. And then they have no shame in mentioning a low valuation as the forced sale rate. Sometimes a developed property is given a forced sale rate that is lower than an empty plot of land in the same neighbourhood. It is a fraudulent practice that the central bank must fight if it has good intentions for small and microbusinesses. There are so many other things commercial banks require which all cost money before money is or not even disbursed. I think that way their third-party service providers (lawyers, valuers etc.) get paid and keep in business. Anyway, the real reason commercial banks don’t want to disburse the SBF money to borrowers is a structural issue that the central bank must solve. The Bank of Uganda only provides 50% of the money under SBF with the commercial banks expected to provide the other half. If you borrow Shs100m, the small business fund only provides Shs50m and the commercial bank must provide the other Shs50m. The commercial bank has no interest in lending its 50% of the money at 10% annually when it can lend it at 20% while footing the cost of administration, marketing and recovery. The commercial banks aren’t charity organizations. The central bank should instead provide 100% of the money, allow banks to take 5% of the interest as their fees and remit the other 5% to the central bank. That way banks will be motivated to sell the SBF loans thereby enabling small business to access this credit. Otherwise, the current structure doesn’t solve the problems the central bank envisaged in creating the small business fund. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch Will Uganda’s newly discovered love for international airports grow the economy?

By Denis Jjuuko Uganda has discovered its latest love interest — international airports. We have always had one international airport at Entebbe and some airfields in many parts of the country. But those aren’t the talk of town or dominating online discussion groups and timelines. Construction of an international airport is underway in Kabaale just outside Hoima ostensibly to support the oil and gas sector. New ones have been proposed around Kidepo National Park to support tourism and facilitate regional trade. But the one that has led to more discussions has been the proposed one at Nyakisharara outside Mbarara town. Apparently, it will enable flights to south America to refuel from there on their journeys to Asia and elsewhere. The proposers of the airport claim that this is an existing gap. I am not an aviation expert, so I don’t know why these flights aren’t able to refuel at Entebbe or even existing airports in East Africa. I am also not sure whether it makes sense to build an international airport whose main business is refueling flights from south America. What else caused debate was the release of the artistic impressions of the Nyakisharara airport. Some people claimed the airport looked exactly the same as one somewhere in the Middle East. Some people prompted artificial intelligence apps to make one at least with the famous horns of the Ankole cows incorporated into the design. This newly found love for international airports within a few kilometres of each other have led to the continuation of a debate that never stops — the lack of scheduled domestic flights in Uganda. Up to the 1990s, there were affordable scheduled flights to Kasese, Arua and other parts of the country. Some still exist but they cost an arm and leg, unlike in developed markets in Europe where people fly for a song. There are many reasons that explain the lack of affordable domestic flights in Uganda. The infrastructure is poor enabling only small aircraft to operate at these fields. But that isn’t the biggest problem. The market simply doesn’t exist. Until oil starts flowing from the wells in western Uganda, the country’s economy is largely within a radius of 80km of Kampala. Otherwise, businesses in many parts of the country are small comprised of smallholder farmers and petty traders. The majority of these people have no genuine reason to fly to Kampala and if they have, they wouldn’t afford the tickets even cheap ones that would sustain an airline business. Bus companies have tried to provide executive coaches where people pay an extra Shs10,000 or Shs20,000 to travel in comfort. After a few months or years, they usually close and return to non-executive passengers. The argument the domestic flight enthusiasts give is that the markets for air travel is of those who drive personal cars to these towns. The statistics are hard to find but how many cars arrive in Soroti or Arua from Kampala every single day? There aren’t many. Most of these towns have few hotels but you will hardly arrive in a town and find no room for a night. That is why most people who travel to these towns don’t even bother to book accommodation in advance. They know these towns with fewer than 1,000 hotel rooms will have plenty of free rooms when they arrive. A town which can’t fill less than 1,000 hotel rooms each night probably doesn’t have much business going on. Decent hotel rooms in Uganda cost on average less than Shs100,000 a night including some sort of breakfast. If people can’t fill hotel rooms of Shs100,000, how would they fill aircraft of 50-200 seats on a regular basis for the airline to make money? Look at Members of Parliament, one of the biggest categories of high earners in Uganda. Many of those who represent constituencies outside Kampala come for their weekly meetings by night bus. They can’t afford to drive on a weekly basis. Where scheduled flights exist like Kasese, they don’t use them as well. If a high earning category in Uganda can’t afford to drive every week to Kampala, what about small trader in Kasese or Arua? Although we can improve the airfields to facilitate air travel, international airports in every corner of the country won’t lead to improved incomes for the majority of Ugandans. However, if we want tourists to avoid grueling road trips to Kisoro or Kidepo, smaller airports could do, which could be expanded with increases in traffic. Though investments in agribusinesses and small-scale industries could lead to improved incomes easily for the majority of people who then could be targeted for flying. As per now, international airports could end up as vanity projects. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch: Ugandan businesses embracing the region signals good things to come

By Denis Jjuuko For many years, Ugandan businesses relied on many things Kenyan. Employees in the hospitality industry, advertising, creative, transport, logistics and even banking among others. Of course, Kenya is a bigger economy which has also not been largely disrupted by war. They had expertise that we lacked. So, it must have been easier for them to set up here or sending their goods to Kampala. Of course, there were Ugandans doing lots of stuff in Nairobi. In the 1970s and 1980s, many Ugandan experts were exiled in Kenya working as medical doctors, lawyers, teachers, businessmen, and political ‘external wingers’ among other jobs. Singers Jose Chameleon and Bebe Cool got their breakthroughs after recording in Nairobi studios. Later, Ugandan radio presenters made Nairobi home. Private radio had developed faster in Uganda after the liberalization of the airwaves in 1993 than in Kenya. However, if you needed technical expertise on many things, Kenya seemed to be the ideal destination. Ugandan entrepreneurs like James Mugoya and Bulaimu Muwanga Kibirige (BMK) had set up businesses there in the construction and automotive sectors among others. But still, there was an imbalance. Kenyan businesses set up more in Uganda than Ugandan businesses did in Kenya or elsewhere. That trend seems to be changing. First, many Ugandan big businesses like banks were run by Kenyans and other foreigners. There was a time a few years ago when almost all the banks in Ugandan had foreign CEOs. Today, the majority of banks are run by Ugandans. And some Ugandan executives are now running big businesses in Kenya, like Bamburi Cement. Second, in recent years, we saw Omar Mandela set up his popular Café Javas in Nairobi. It became an instant hit with the hippy Nairobians looking for a place that is well known for its customer care and great food. Kenyan managers had been running the hospitality industry in Uganda and now, a Ugandan businessman was taking the game to their capital. Café Javas today has more outlets in Nairobi than Kampala and Entebbe combined. Perhaps, other Ugandans are learning from Mandela. Since last year, we have had at least three Ugandan businesses in the entertainment and marketing world set up in Nairobi. Fenon, Swangz Avenue and Talent Africa Group all now have offices in Kenya. Previously, the entertainment and marketing businesses relied somewhat on Kenyan experts and even equipment to pull off events and marketing campaigns. Ugandan businesses are now playing on their grass. In tourism, we are also seeing Amos Wekesa’s Great Lakes Safaris operating a hotel in Tanzania. A few years ago, we saw Centenary Bank starting operations in Malawi. Many other Ugandans are also doing business in southern Africa. The BMK Group has operations in Zambia and many others have taken the same route. Rwanda, South Sudan, Burundi and the Democratic Republic of Congo are some of the other markets where Ugandan businesses are operating. It is remarkable that Ugandan businesses are growing and expanding in the region. Previously, we looked on haplessly as largely Kenyan businesses took over markets even after the Ugandan army had pacified some of those countries. South Sudan comes to mind. Ugandans for example in South Sudan operated the smallest of businesses — curio shops, barber kiosks and roadside restaurants. Kenyans operated banks and other big stuff thereby gaining more from regional trade. Uganda’s economy is largely concentrated within a radius of 80km of Kampala. That limits growth for some of the businesses yet economies like Kenya are way bigger than ours. The East African Community has a population of nearly 350 million people with a nominal GDP of about US$350 billion making it a market that we can’t simply ignore. Uganda has been pushing for exports into these regions while facing many barriers including infrastructural ones in countries like the DRC. And if we only export there after even constructing their roads, we miss out on some opportunities that are extended to registered businesses in those markets. However, we shouldn’t be limited to only the region. With geopolitical pressures across the globe, there is even more need to expand to take on sectors that may not be well catered of as global players concentrate on their main markets or scale down in others. Businesses which may not be ready to go it alone should look for companies they could merge with or acquire to get a footprint in those particular markets easily. The writer is a communication and visibility consultant.

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Out to Lunch

#OutToLunch: Had Iran been Uganda, what would we have done?

By Denis Jjuuko When the planners of the war on Iran sat to make the final decision, they perhaps envisaged a quick win. Fly in, kill the leader and a few others and the country would collapse. Your chosen leaders would then take over and pledge allegiance, after all you are the world’s super power. Oil would flow to wherever you want it. As the leader of America, Donald Trump would be expected to stand somewhere in the White House and announce how the greatest military on Earth has performed. The new leaders in Tehran would repost his every post. A red carpet would soon be rolled out at the White House where the new leaders in Tehran commit to pay allegiance to the Americans and their Israeli backers. Washington would announce the end of sanctions and beckon American companies to take on the reconstruction of Iran. A date for a return visit to Tehran would be announced. Donald Trump would step on the improvised steps of Air Force One and utter the word ‘freedom’ while clenching his fist. At a speech in Tehran where school kids are waving paper flags of Iran and USA, he would warn others of what will come if they don’t fall in line. Fox News would declare him the greatest leader America has ever had. Trump would demand the Nobel Prize committee to award him. He has saved the world of potential nuclear weapons. Hollywood writers would scramble for pieces of paper to script a blockbuster. However, Iran seems to have had different ideas. The writers must now be writing but not the grand movie. American contractors are waiting, unsure when their reconstruction deals will be inked. Trump posts one thing after another, perhaps once in a while, remembering the famous quote from Sun Tzu’s the Art of War: the best way to win a war is not to fight. Iran defied the odds. Two military powers have dropped thousands of bombs on its facilities and leaders but it has been able to somewhat fight back and even forced ceasefire talks in Islamabad, Pakistan even if they ended without any deal. When you think of Iran, you always want to think of Africa or at least one country in Africa since the continent is not homogenous. Is there one that can stand up to the world powers? Perhaps none. Our natural resources are not used strategically. In fact, they have been a source of endless wars. Look at the Democratic Republic of Congo for example. I consider them the richest country on earth but they can’t even complete their Inga Dam or construct bitumen standard roads. Uganda, a potholed nation, is helping them in the eastern parts of the country. Nigeria had to wait for a private person to build a mega oil refinery. They preferred to export crude and import the refined products. If an individual businessman can mobilize resources and build a refinery, what about a country? And you can say that about all oil producing countries on the continent. We have conditioned ourselves to export raw materials and import everything. The Iranians didn’t wait to import everything. They made their Shahed drones, they developed their missiles program and created a system that wasn’t depending on a single strongman whose assassination would lead everything to crumble. They built universities and given that they are forcing Americans to sit on a negotiation table, it means they didn’t fill their key positions based on blood relationships or who could praise their leaders loudest. They also understood leverage. Their location provided them with the Strait of Hormuz through which 20 percent of the world oil passes. They understood that 20% of the world’s oil can’t be ignored. They understood that their location gives them an opportunity to fight back or take the war to the enablers of their adversaries. They didn’t spend half their time blaming the Americans for the economic sanctions imposed on them. They found a way to prepare themselves for a war that they knew that one day would come. Had the Iranians been some of the African leaders, they would be blaming colonialists while sending their kids to western universities and keeping whatever money they land on in Swiss banks. Research and development would mean nothing. The most energetic labour force would be carted off to find jobs as domestic workers while being urged to save and come back and be job creators. Had we been Iran, how would we be strategically using River Nile, Lake Victoria, the near perfect weather we sing about and all the resources we have? The writer is a communication and visibility consultant. djjuuko@gmaio.com

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Out to Lunch

#OutToLunch: Municipal bonds could help resettle kiosk businesses removed from road reserves

By Denis Jjuuko A few weeks ago, the internet in Uganda went gaga with a photo of a woman raising her hand, while another holding a toddler who was busy breastfeeding. The woman was in distress as her kiosk was being loaded on a truck with Kenyan motor registration license plates. People said it was photo of the year. To be honest, it is a very powerful image and lives to the axiom that a picture says a thousand words. Some people offered to help the woman. Others said a lot of stuff about the ongoing countrywide campaign to remove informal structures from road reserves and elsewhere. The photographer was the “most wanted person.” It turned out the image was made through prompting artificial intelligence applications. What AI won’t do!! Anyway, Uganda is one of those countries where everyone is either a business owner or trying to start one or has ever started one. We are labelled, by some international organisations, the most entrepreneurial country in the world. But most of our businesses are small, micro small or something lower. A kiosk here, a stall there, a bench where you can polish and shine shoes or simply sit and wait for customers and sell them something that you pick from a shop that you pretend to own. It is called kuyiriba in Kampala speak. With the coming of age of the internet, kuyiriba is also very much alive online. However, kiosks and stalls on streets, road reserves and everywhere you turn, although a big source of employment in the informal sector, are also an eyesore. They create a slummy and unsafe environment for both the people who own them and their customers. The government decided that it had seen enough and instructed their removal (though that order has since been halted). Imagine you are driving on a highway that connects Uganda to Kenya, and perhaps the busiest in the country given our reliance on the Kenyan port of Mombasa, and all of sudden you see hundreds of stalls selling waragi between Kakira and Magamaga where largely taxis and trucks stop, “recharge” and continue to wherever. What message would visitors to Uganda through that route be thinking? Drink driving makes our roads unsafe. What about those visitors who were using the old Kampala-Entebbe Road? They give an impression of a very poor economy. Most of the remaining shops won’t do us any justice either. Impression is sometimes everything. In the meantime, I hope they can ask the property owners to at least pave their front yards and apply some fresh coats of water-resistant paint. The aging roofs could be replaced too. Those who can’t improve these properties could be asked to sell them to those who can. Alternatively, government can acquire them through fair compensations, similar way they do with the right of way while constructing roads. The government would then make a masterplan of the area complete with architectural plans and invite those with money to buy the land from the government and invest. The new investors would not be allowed to change the plan to whatever they want. The government would get the money by issuing municipal or infrastructure bonds. Saccos and investment clubs, individuals and others players would oversubscribe. And then they would find the money to buy the masterplans and do the investments in record time. Tax incentives could be provided. The masterplan would include acquisition of large areas where markets would be established so the kiosk and stall owners would be shifted there. Flea and mobile markets would also operate in such areas instead of doing so in road reserves. Taxi and bus stop areas would be identified and even future train stations. Cycling lanes in some areas as well. Kampala and many upcoming urban areas don’t have open areas. This way, some areas would be dedicated to that among other amenities that make cities livable. Ugandans would have to accept that they can’t get whatever they want around the corner. Every little corner can’t be boda stage or taxi park or a temporary eatery every 7.00pm. People would have to learn to walk or even drive a bit for what they need such as boarding a taxi or getting some groceries. Every little front yard can’t be a kiosk or boutique of used dresses. The global cities we admire are designed that way. We have the tools to do that. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch: UEDCL review should include self-funded connections

By Denis Jjuuko The cost of land in greater Kampala and indeed other urban areas of Uganda skyrockets all the time making it hard for the majority of people to become homeowners. This increases the country’s housing deficit annually. Currently, the housing deficit stands at approximately 2.4 million units. One of the major reasons for the high cost of land is lack of utilities or actually their availability. If an area gets connected to the national electricity grid and water mains, the prices of land shoot up. If a road is built, the prices triple or even quadruple. The land owners know that availability of utilities like electricity and water is an attraction because where they are not available, the costs to get them can be huge. For example, a new connection may cost you less than Shs100,000 where you don’t need a pole and willing to wait for the government subsidized one or more than Shs500,000 for a self-funded connection. Should there be no pole near you, the costs become excessive as they run into millions of shillings. A single-pole connection costs in excess of Shs2.8m. Should you need more than one pole, the costs become limiting and you have to look for a private company to build that line for you. There is no guidance on how much that costs. Each company charges as they wish. When it comes to a factory or business that needs three-phase electricity and a transformer, the costs could be humongous. The alternative land in areas where electricity is available like the industrial parks is not affordable for small businesses leaving them without any options but to incur high startup costs. Water isn’t any different. If there are no major water pipes near you, you suffer the same fate by installing them at your cost. I think it is these costs that enraged the outgoing Mawokota South Member of Parliament Yusuf Nsibambi to cut down the poles he had installed when the voters rejected them in the January 2026 polls. He claimed on live television that there was no return on investment after getting the fewest of votes from areas where he had installed electricity and sunk boreholes using personal resources. He has since crossed from the opposition FDC to the ruling NRM. Nsibambi may have been lucky not to be arrested for cutting down ‘his’ electric poles and vandalizing the power lines. This is because once you install them, the government agency, UEDCL and Umeme before them, maps them and registers them as their own assets. They include them in their inventory. When electricity and water utilities are publishing their achievements and investments on glossy paper, they include the kilometres of electricity lines, transformers and water mains installed. What they don’t tell you is that some of those aren’t built by them and therefore shouldn’t claim them. If I build my own electricity line or install water or a transformer, why should the government utility claim them? Just because they sent a guy or two on a motorcycle with a GPS machine and wrote down the coordinates? The cost of taking down GPS coordinates is insignificant compared to the cost of building the line, buying the transformer and all the stuff. Now, over the weekend the Minister of Energy and Mineral Development terminated the services of the board chair of UEDCL and sent the managing director on forced leave. The newly appointed acting board chair was swift in naming an acting managing director. Everyone hopes that services will improve. One of the issues should be reviewing new connections especially where there is no pole or transformer. The minister and the regulator need to instruct UEDCL not to demand payment from people who buy a pole, build a line or install transformers until their investment is covered. The surveyors they send to establish that a pole, three-phase or transformer is required can put it in their report and come up with workable cost. When the person goes ahead and funds this connection, then they can credit the customer’s account with the money spent. Every month, they can deduct what the customer has consumed until the credited amount is used up. Thereafter, the customer can start paying for the service. That way, the utility company has not ‘stolen’ a private line or transformer and passed it as their own. The homeowner or business would have their money back and that would lead to lower costs of land and/or doing business. The writer is a communication and visibility consultant. djjuuko@yahoo.com

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