Government of Uganda . – Page 4 – Prime Time Communications

Out to Lunch

OutToLunch: Electric mobility as a new year business option

By Denis Jjuuko One of the most trending videos last year was of a bus driver recorded having a meal while driving. He wasn’t snacking, picking on a crisp or something. He had his plate full from which he would pick some African food while driving. At one stage, he even sipped some soup direct from the plate. On seeing the video, police as usual reacted and had him arrested. Another driver was recorded WhatsApping while driving a busload of passengers. One would expect that bus drivers pay the utmost attention given the number of people on board. In most cases, they are the worst. They drive at high speeds beyond the 80kph that they emboss at the back of their buses, overtake in blind spots, or simply overtake and other road users must find their way or else a head on collusion. They install train horns in their vehicles that they sound with reckless abandon. They don’t care if they make you deaf in the process, as long as they have sounded the horn as if their lives entirely depend on it. Most times, the buses are rickety with broken centre bolts that make it impossible to move in a straight line. If you want to see impunity on the road, follow a bus on a highway. One of the major reasons they drive that way is because many haven’t received proper bus driving training. They are easily moved from lorries or even taxis to buses. Some start as cargo loaders and along the way start learning to drive. In a few years, they are bus drivers. Most bus drivers are paid per a trip so drivers consider sitting down for a meal or driving at the recommended kilometre per hour a wastage of time. The more trips they make, the more money they earn in a day, week or month. The more money a bus owner makes. I have though never understood why a businessman would spend Shs700 million or more on a bus and then hand it to the most incompetent driver ever or one who wouldn’t care about how the bus is driven. If bus owners don’t value human life, at least they should look at their investments. Many of these buses don’t have comprehensive insurance so once they are involved in an accident, that is the end of it. No compensation. That could explain why many bus companies struggle to stay in business for decades. So, I was impressed on a recent visit to Nakasongola where I met bus drivers undergoing skilling by Kiira Motors. Even though the program being implemented by Kiira is updating drivers with the skills they need to drive electric buses, it is also focusing on customer care and experience, traffic rules and regulations, routine service maintenance and repair as well as handling and operation of equipment including electric charging. If they can skill a big pool of bus drivers including those who drive internal combustion engine buses, the better for the country. Passengers eventually won’t be driven from one part of Uganda to another like bales of used clothing. But this work can’t be left to one entity and its parent ministry. Bus and taxi drivers must be equipped with regular skills they need to do a job that puts the lives of the passengers and other road users first. Not just thinking of how many trips they can make a day. Bus owners must be aligned to this necessity as well. Of course, it isn’t just bus and taxi drivers that require refresher driving courses. Many ‘my cars’ drive recklessly and don’t even know basic traffic rules and regulations. Once they have made some money, they buy a car and next day, they are driving for Christmas to the village to show it off to their relatives. Many arrive by sheer luck. Beyond the case for driving, last year saw an increase in the number of electric vehicles in Uganda albeit with nearly all of them in Kampala. Some corporate bodies, NGOs and diplomatic missions accredited to Uganda started electrifying their fleets. This heralds a new era of electric mobility. Sooner than later, there will be lots of electric vehicles without the skills to drive and maintain them. The opportunities for electric vehicles are massive and there is a lot for the private sector to play. We shouldn’t just wait when the vehicles are all over the city and then try to catch up. It isn’t just cars by the way. Some entrepreneurs have been converting boda bodas from petrol engines to rechargeable batteries. Since there are more boda bodas than cars in Uganda, that sector also has a lot of potential—from charging infrastructure, skilling, to maintenance. If you are reflecting on what to do in the new year, electric mobility is one option. The writer is a communication and visibility consultant. djjuuko@gmail.com

January 10, 2024

Out to Lunch

#OutToLunch: Chanel mobile money interest payments to pension savings

By Denis Jjuuko Some old people in Uganda receive some Shs25,000 a month from the government to enable them to “afford life.” The people who are involved in this activity claim that the elderly on this program look forward to this money as it enables them pay for some household needs. Most people would like and even pray every single day to live long lives. I don’t know though how many would love to survive on this Shs25,000 (US$6.5) a month. Nevertheless, one is better than zero. Uganda’s workforce stands at more than 18 million people today. The majority of these people will in about 30 years retire from their jobs either because they have reached their age for retirement or too old to hustle. Most of these people today are unsalaried and will remain so for all their working lives as they work in the so-called informal sector. Even though most of these people will not be able to kuyiriba (hustle), many will still be alive given the improvements in medical treatment technologies, availability of information and living generally better lifestyles. The challenge they will face will be consistent income. For decades, many people banked on their children to look after them during retirement especially those that managed to pay school fees for these offspring. Although that may have worked in the past, it is one sure way of suffering as you wait for the benevolence of the children, who themselves may not have much or may prefer to spend their money elsewhere. We are increasingly becoming capitalistic. The social system that most people in Africa depended on is getting broken as the continent urbanizes. And if millions of people retire or unable to work every year, the government cannot be able to pay those on regular pension (retired civil servants), those being retrenched from public service and the elderly. Even if they pay, the Shs25,000 a month is too little to enable anyone live a decent life. Uganda isn’t the only country that has this problem. Africa is the youngest continent where the median age is 19 but with a working population of 788 million people. Like Uganda, the majority of these people will be retiring in 20-30 years. Again, like Uganda, the majority of these people (600 million) have no pension savings. When they retire, they will become destitute. In Uganda, employers are supposed to contribute to NSSF for their workers but the reality is that many people in informal jobs can’t do this. We are known as the most entrepreneurial country in the world but the majority of these entrepreneurs are kuyiriba-ring such as hawking, being paid for work done or per a day etc. Just study those who claim to own online shops or the guy slashing your compound where he comes once a week during the rainy season and maybe once a month during the dry season. Who will pay his NSSF? They may be catered for in the law but the reality is different. What needs to be done is to create systems that can enable people to save by seeing the benefits of it. Many people are increasingly becoming members of village saving schemes, saccos or investment clubs (building societies), and Nigiina (where people raise money for one person on a regular basis until every member has received their share) among others. But these are usually short term and not looking at pension 15 or 30 years later. I recently attended the African Pension Supervisors Association (APSA) conference and as experts debated pathways to sustainable inclusive pension in Africa, I kept on thinking about mobile money and how it can revolutionarize pension in Africa. Periodically, I receive some mobile money. Little amounts. Last month, I got Shs2,695 as interest payment. There about 40 million mobile money users in Uganda. There are two major mobile money companies in Uganda and they each pay out an average of Shs5 billion per a quarter to customers like me. That is Shs10 billion every three months. In a year, that is Shs40 billion on average. Imagine if this money was instead of sending it directly to me, they opened a pension account for me linked to my National ID where it is saved and invested? Growing at a net income of about 12% annually, this pension scheme would bring in Shs4.8 billion in net profit in the first year. If you compound this for 15-30 years and telcos contributing every quarter, many people would be able to retire with something. It can also be linked to the national health insurance scheme and allow each member to voluntarily contribute. It would require innovative incentives to work such as withdraws of a certain percentage every five years or funeral covers for parents, spouses or offspring. The writer is a communication and visibility consultant. djjuuko@gmail.com

December 19, 2023

Out to Lunch

#OutToLunch: Predictable incomes, culture of paying debt key in lowering interests on loans

By Denis Jjuuko You have probably heard somebody say these not very magical words; “It is very little money,” especially when they are being asked to pay back some money, they were so desperate to borrow. Or somebody has accosted you for depositing money on a particular mobile money line without asking them first as they had a debt on a line on which you deposited. You also probably know somebody who came crying to borrow some money and has since switched off their phones or no longer answers your phone call. Some wise people have advised Ugandans to only lend people money that they can afford to lose. Imagine! This habit of failure to pay back is extensive. I saw a post with a quote attributed to the Bank of Uganda Deputy Governor saying that the Uganda Bankers Association had told him that commercial banks in the country have Shs5 trillion of loans in courts. Apparently, once some people borrow money from the banks, when payment time comes, they run to court disputing the amount to pay or the legality of the lender. As you know courts take their time to decide non-political cases. It can be years before a judge is allotted the case and then the scheduling and adjournment can take forever. As the judge is about to give his judgement, he is transferred and another judge is appointed to hear the case. Adjournment of cases is the norm in Ugandan courts. In the meantime, the lender is losing money and the borrower is in court purposely to play the long game. It’s perhaps one of the explanations for the high interest rates we pay on loans thereby affecting the country’s economic growth. Usually, we only complain about the banks and not our failure to honor our loan obligations. Failure to pay debt is one of the major impediments to growth. In his top selling autobiography, legendary businessman, Bulaimu Muwanga Kibirige (BMK) and now deceased, credited his growth on supplier’s credit where he received goods on credit and paid back. He said that many of his colleagues who always found ways not to pay back suppliers had their businesses collapse within a few years. Some of these people, he said, had been wealthier than him. By the time of his death, some used to call him for financial assistance. Of course, debt payment issues aren’t squarely on the shoulders of the debtors. The banks aren’t innocent either but there are also other issues why interest rates are high in Africa. The size of the economy, political instability, high levels of poverty and high inflation rates among others could provide richer explanations. But the borrowers can’t always be absolved. The majority of people in Africa have no predictable income since they largely work in subsistence agriculture, growing food for household consumption with the little surplus left to sell. Even those who practice commercial agriculture, the majority have small gardens and always unsure of their income. Today the tomato harvest is good but everyone has had a bumper harvest thereby crushing the prices. Next season, few farmers have remained in the business and the prices are high prompting everyone to grow the tomatoes the following season. By harvest time, there are simply too much tomatoes and the prices are down again. That is the circle most smallholder farmers operate in. Banks looking for somebody to lend money won’t even bother giving them a call. They know that chances of a borrower not being able to pay back are high. If they are to lend, they extend as little as possible (at high rate) which is unable to help get a farmer out of poverty. Yet 50km away, in the country’s capital, the tomatoes are on high demand that some are being imported into the country either as fresh tomatoes or factory processed tomato paste (look at the shelves in your local supermarket). This being the rain season, there are reports that farm gate milk prices have crushed by more than 50 percent. In December, at the first sign of a dry season, the prices will go up again. But farmers have no alternatives to preserve their milk and wait for the prices to go up. The money they would have made due to increases in the prices in the dry season will go into looking for water for the cows. You can say that about almost every crop or produce. If we want lower interest rates on loans, there is a need to ensure that the majority of our population who are involved in agriculture earn a predictable income, the judiciary must become efficient in disposing cases (Katikkiro Mayiga writes about this in his book Uganda:7-Key Transformation Idea), and cultivate a culture of people paying back their debts and stabilize the economy and the politics. The writer is a communication and visibility consultant. djjuuko@gmail.com

December 7, 2023

Out to Lunch

#OutToLunch: Nyege Nyege and the case for local governments to identify their niche attractions

By Denis Jjuuko For many years, Jinja had lost its status as the industrial hub of Uganda when many factories closed following their privatization to private entities. The private investors preferred setting up in Kampala near to the market or executives didn’t want to abandon their Muyenga mansions for life on Kiira Road on the banks of River Nile. Jinja, with its wide streets, became somewhat sleepy, eventually known for making chapattis! But the picturesque location that is Jinja was always going to be key for its revival. Residential houses where once factory executives resided became bed and breakfast lodges. And tourism players started building hotels and lodges on cliffs where people could see the majestic Nile flowing towards the Mediterranean. Sports such as kayaking and bungee jumping were introduced. Someone brought in quad bikes and horse riding. Soon, Jinja became a preferred destination for tourists, honeymooners and those seeking a nook to break away from the hustle and bustle of Kampala. Many young people spend their weekends in Jinja. Located a mere 80km away from Kampala, the town is a cheaper option for those seeking gateways. Transport fares are reasonable and accommodation is affordable and there are lots of stuff to see and enjoy on budget. Eventually, factories returned to Jinja and many are being set up increasing the number of people in town. But also, Jinja still has big open spaces where big events can be staged. The agricultural show is a parmanent fixture on the town’s calendar and of recently, the famous Nyege Nyege that took place over the last weekend. There is no event that divides opinion like Nyege Nyege in Uganda. It has been debated in parliament and at one stage, MPs wanted to ban it even though people questioned if they had the legal mandate to do so. The ethics ministry termed it an immoral event. Busoga political stalwart Rebecca Kadaga showed up to preside over its opening ceremony, like she did again this year. Pictures and videos will emerge of a few people who have drunk a little too much or who are dancing seductively or dressed in clothes the size of handkerchiefs. Those against the four-day music festival will use such images to justify their opposition to the event as one that is leading to the erosion of the country’s moral compass. Regardless, young people arrive in Jinja in droves to enjoy the event. Many fly in from overseas and turn the town upside down for four days to the chagrin of the country’s morality police. Wherever people converge in large numbers, some may do certain things that many won’t approve of. People ‘misbehave’ at workplaces or even worship ‘crusades.’ There is no way, a few people wouldn’t let their passion take over during a musical festival. Anyway, it is during this event that Jinja experiences some bit of traffic gridlock and have the many lodges filled up. Some people turn their homes into temporary hotels while those in the camping tent business make a killing. Boda boda riders, chapatti makers and all sorts of small businesses make lots of money during this festival. Jinja local government authorities and the Uganda Revenue Authority must be smiling all the way to the bank. Banks themselves are smiling as well. However, if you are a local government in one of the major towns or cities as some are called, you should have taken keen interest in Nyege Nyege. Local governments need to promote their towns so that businesses can blossom which in turn will mean increased revenues. They don’t necessarily have to do music festivals. Masaka, for example, could do more about grasshoppers during the two seasons a year (hopefully they return). They can promote the season and open up collection or gathering centres where at night, people can get involved. They can make the exercise a fun event for four days each season. Uganda is food rich. Another town can do a food festival. Actually, that can be done in each region of the country given our peculiarities when it comes to culinary stuff as long as we portray it as fun event. Packwach’s Nang Nang fish is delicious just like the cassava in Kafu. Malewa in Mbale. Malakwang in Gulu. Firinda in Tooro and potatoes (chips festival?) and Enturire in Kabale. What about games? Wrestling (ekigwo), board games (mweso, dduulu), okwepena (what is it in English?), skipping the rope, and blend it with modern ones people have come up with these days like Otyo and a town’s fortunes may change forever. Towns like Arua have golf courses. They also don’t have to be events held once a year. Local governments with support from their mother ministry or that of tourism or the Uganda Investment Authority may help towns identify their niche attractions and work on a plan to promote them. The writer is a communication and visibility consultant. djjuuko@gmail.com

December 7, 2023

Out to Lunch

#OutToLunch: If people can contribute to Kyabazinga wedding, they can do so for impactful causes too

By Denis Jjuuko Many times, the Busoga region appears in the press for the wrong reasons. High levels of poverty largely blamed on sugar cartels that disenfranchise farmers and even higher cases of teenage pregnancy that are sometimes above the national and East African average. But earlier this month, the focus was on the royal wedding. Globally, people love weddings and more so if it involves royals or very famous people. Television stations left no stones unturned in broadcasting the event live. Many people on social media claimed to have spent the day glued to their TV sets to capture every aspect of the ceremony. Jovia Mutesi, the Queen Consort, had done a great job of ensuring there wasn’t much known about her before the wedding. There were no previous social media posts of her past circulating everywhere. No groupies claiming, she is their bestie. At least I didn’t see them. Not even her kwanjula photos. The first images we saw were of her farewell ceremony on the day of the wedding. Kudos to her and the team. For the past nine years of William Gabula Nadiope as the Kyabazinga of Busoga, it has been hard to tell what the kingdom is doing from an outsider’s perspective. He seemed to be largely holed up in his palaces, appearing once in a while at events before disappearing from the public view. We even heard at one stage that he had been appointed an ambassador by the central government. And when his prime minister announced the wedding date and unveiled the future queen consort, everything seemed to be going awry. A corporate bank issued a famous letter that they have no money to contribute followed by an audio allegedly of a woman he married in a small island country in Europe. But the kingdom didn’t panic. They stayed on course with their strategy, only issuing a statement when some lawyers had written about the existence of another marriage albeit without any iota of evidence at least for us watching from the distance. Undeterred by such allegations, organizations and even individuals continued to line up to the prime minister’s office to donate and wish the king and his future wife happy nuptials. That confidence that people had in their king even when many allegations were flying on social media and even in some newspapers is something Busoga Kingdom must build on. Kingdoms today don’t have the mandate to fight poverty and provide social services to their people. That is the sole responsibility of the central government, which enjoys absolute authority yet the people demand social services from the kingdoms — at least the kingdom that have legitimacy. It is not possible for these legitimate kingdoms to sit back and tell the people who are desperate that your social contract is with the central government. The people actually know that but they have learnt to manage their expectations. So, for Kyabazinga to continue enjoying his legitimacy, he must do something. The wedding has shown him what is possible. If people can contribute billions to a wedding, they can contribute to kingdom programs that alleviate people from biting poverty. The organizing committee of the wedding already know this and I saw that they committed themselves to do something in the first 100 days of this wedding. It is good that they don’t lose momentum but they should also be thinking long term. You can’t significantly reduce teenage pregnancy in 100 days. They also committed themselves to ensuring the people of Busoga participate in the parish development model. Good stuff. But they should avoid portraying themselves as an extension of the central government or ruling party. They wouldn’t want to be blamed for its excesses. At one stage during the wedding, it looked like a political party event. Towing an independent line would ensure that they don’t alienate the Kyabazinga’s subjects that belong to other political parties. They should work with all people across the political divide. For many reasons, they can look west to Buganda which manages to deliver social services to its people without the resources from the public till. If corporate bodies see value in the work of Busoga Kingdom, they will partner with it just like they collaborate with Buganda. The Kyabazinga already has a team that he can rely on and he shouldn’t allow them to go into hibernation mode after the 100 days they talked about. It will also be important to put administrative structures in place that are watertight to safeguard the interest of the kingdom. Since the Nnabagereka of Buganda was Inhebantu Mutesi’s witness in church, she now has a direct line she can use to learn how she can create an office that can address some of the challenges children and young women in Busoga face today. Just like her husband, she already has the will of the people. The writer is a communication and visibility consultant. djjuuko@gmail.com

December 7, 2023

Affordable Housing in Urban Informal Settlements: A Catalyst for Economic Growth in Uganda

By Robert Otim A good home is a base from which one can be economically productive. Good housing improves health and productivity of the occupants who in turn have the ability to contribute to the economic growth of a country. However, about 1.8 billion people globally within urban centers are struggling to find decent and affordable housing. The lack of affordable housing is a major driver of informal settlements. These are areas characterized by a high population, small and congested housing units with limited access to water and sanitation facilities and very prone to diseases and epidemics. The demand for affordable housing especially in urban centers is one of Uganda’s biggest challenges due to its fast growing population. This is coupled with increasing urban poverty resulting into the lack of access to credit and financing options hence the inability to take on opportunities such as rental housing or mortgage-financed homes which fuels the growth of informal settlements. Land tenure issues also contribute to the proliferation of informal settlements. Many residents in informal settlements do not have secure land tenure rights, making them vulnerable to eviction and displacement. This uncertainty discourages investment in better housing, leading to the growth of informal settlements as people settle on unoccupied or disputed land. Addressing the high prevalence of informal settlements in Uganda requires a multi-faceted approach that includes affordable housing initiatives, improved urban planning, secure land tenure, poverty reduction strategies, inclusive economic development, government policies, community participation, and the collaboration of various stakeholders to tackle this complex issue. In 2008, the government of Uganda approved the National Slum Upgrading Strategy and Action Plan in an effort to slow down the growth of slums and eventually stop the creation of new ones through legal and land market reforms, revamping planning and zoning regulations. The policy is also meant to provide security of land tenure as well as building codes to make housing more affordable to the citizens of Uganda. The policy further provides for inclusiveness by bringing all housing sector stakeholders on board to pull resources together to support government in providing affordable housing for Ugandans. Organizations such as Habitat for Humanity Uganda, a housing organization dedicated to eliminating poverty housing in Uganda has on a number of occasions yielded to government’s call through collaborating with government entities, private sector partners, and communities to seek out innovative ways of providing affordable and decent housing for Ugandans. Early this year, the organization together with the Ministry of Lands, Housing and Urban Development (MLHUD) launched the Home Equals campaign, a five year advocacy campaign dedicated to achieving policy change, at all levels, to ensure that people living in informal settlements have equitable access to adequate housing. The Home Equals campaign seeks to advocate for increased collaboration with settlers of informal settlements, accessible quality services and improved land governance and leadership by local government land committees. This campaign together with other initiatives are steps to addressing the affordability challenge in the housing sector through providing a platform and foundation to access wider development opportunities that contribute to the well-being of humanity and the country as a whole. Investing in affordable housing initiatives in urban informal settlements creates employment opportunities for workforce which not only alleviates poverty but also stimulates economic growth by generating income for individuals and local businesses. During the World Habitat Day in October this year, the MLHUD and Habitat for Humanity Uganda will hold the second annual Uganda Housing Symposium under the theme: Affordable Housing in Urban Informal Settlements as a Driver of Economic Growth at the Mestil Hotel in Kampala. The symposium will seek for solutions so that affordable housing projects serve as a catalyst for micro-enterprise development within urban informal settlements. As new housing units are built, the demand for local goods and services increases. This presents an opportunity for small businesses to flourish, providing goods and services such as building materials, plumbing, electrical work, and home furnishing. By supporting these micro-enterprises, the local economy is strengthened, creating a ripple effect of economic growth. Access to affordable housing in urban informal settlements directly impacts the health and education outcomes of residents. Adequate housing provides a safe and healthy living environment, reducing the prevalence of diseases and improving overall well-being. Moreover, children living in stable housing are more likely to attend school regularly, leading to better educational outcomes. Investing in affordable housing not only improves living conditions but also contributes to the development of a healthier and more educated workforce, which is essential for economic growth. Affordable housing initiatives can serve as a catalyst for the development of infrastructure in urban informal settlements. As housing projects are implemented, there is a need for improved road networks, water and sanitation facilities, and electricity supply. These infrastructure improvements not only enhance the quality of life for residents but also attract future investments and economic activities in the area. The writer is the National Director, Habitat for Humanity Uganda. noffice@hfhuganda.org

October 23, 2023

Infrastructure

#OutToLunch Privatize road rescue services to reduce accidents on our highways

#OutToLunch Privatize road rescue services to reduce accidents on our highways By Denis Jjuuko If you ever pitch rides in vehicles that belong to international organizations operating in Uganda, you will notice at least two things. The first one is that many don’t move beyond 6.00pm especially on the highways. If the time is not enough to cover the distance and be parked by 6.00pm, they reschedule to the next day. The second one is that many drivers don’t usually do speeds beyond 100kph. Yet some of these vehicles are some of the most powerful on the road — V8 or V6 engines and brought in brand new. Not the usual end of life vehicle we gladly import from Japan. The reason they insist on their vehicles moving during day is largely for safety reasons. Regardless of how modern the car headlights get, there is better visibility during the day which enables the driver to make informed decisions fast. It is more likely to find a tired driver during the night than during daytime. The assumption is that the driver would have had enough rest during the night to drive carefully during the day. At night is when you find a crazy driver that has decided to do a return journey from Arua to Kampala on the same day. Driving under the influence of alcohol is more common during the night than during the day. Many people who drink alcohol don’t do so during the day. But in the evening, they grab a bottle or several after which they sit behind the steering and drive, sometimes very long distances. Also at night, there is no traffic police on the road to warn or fine drivers breaking traffic rules. It is one of the reasons vehicles especially trucks that are in dangerous mechanical conditions (DMC) or those that are wrongly loaded tend to move at night. Apart from a police patrol vehicle stopping them occasionally, they make their trips unrestricted. Many such trucks breakdown on the roads and don’t provide enough warning for other road users. Chances are higher to ram into a stationary vehicle at night than during the day. Do road accidents occur during the day? Absolutely. But it is way safer to travel during the day in Uganda than at night. Even if you put road accidents aside, it is still safer to travel during the day as you can easily get help should you have a mechanical issue to deal with. Thugs that stage illegal road blocks also do so during the night. Of course, government should not regulate the time when we can travel on the highways but we could learn a thing or two from international organizations and why they insist that their vehicles and staff should only move during daytime. They are trying to reduce the possibility of avoidable road accidents and other incidents that could put their staff in danger. Road accidents are always in the news either when many people die in a single road incident or when a prominent person dies in one just like businessman Apollo Nyegamehe popularly known as Aponye did two weeks ago. It is not clear what exactly caused the accident that claimed his life but what we know so far is that he was traveling at night and his vehicle rammed into a stationary truck. Although the government may not legislate the time we should be moving, it can make roads safer. The model being used on the Entebbe Expressway could be deployed on all the highways or at least on the busiest ones. This can be done by reinstituting road tolls. So every road user pays a fee and the money is used to maintain the road and most importantly clearing it of any obstacles that could lead to accidents as well as helping those involved in accidents. A private competent company would be hired to provide a road safety service. Once a vehicle gets a mechanical problem or runs out of fuel (like most vehicles in Uganda do), a tow truck would arrive in time to get it off the road to ensure that it doesn’t lead to traffic delays and most importantly accidents. An ambulance would also be deployed to rush those in need of medical attention to nearby health facilities. That would require several tow trucks and ambulances (including a helicopter ambulance) deployed every predetermined distance for them to be effective. Where the need may require heavy lifting cranes, the company managing the highway would be able to put measures in place for drivers to use the road carefully until the obstacle has been cleared. The company would also maintain road signage and such other furniture. This would not end all road accidents but at least it would reduce the carnage on our highways and make them safer than they are today. The writer is a communication and visibility consultant. djjuuko@gmail.com

October 18, 2023

Automotive Industry

Uganda to launch three-wheeler vehicle with irrigation and electricity generation capabilities

Farmers and rural households are set to benefit from a new three-wheeler motor vehicle on the market that enables them to transport their goods, pump water and generate electricity. President Yoweri Museveni is set to launch the trike during celebrations to mark Uganda’s 61st independence on 9 October in Kitgum District. The trike, named Bingwa, Swahili for champion, is a product of a group of self-trained innovators from the informal sectorled by Rogers Mubiru under their company Kevoton Motions Engineering Ltd. The engine casting was made at the John Lugendo Foundry in Kibuye in Kampala. Bingwa is powered by a 0.8 litre 2-stroke engine with a potentially higher power-to-weight ratio compared to traditional 4-stroke engines making it fuel efficient and easy to maneuver. This was revealed by Hon Dr Monica Musenero, the Minister for Science, Technology and Innovation (STI) in the Office of the President during a flag off ceremony held at the Kiira Motors Vehicle Plant in Jinja where the trike was built. Bingwa, the three-wheeler commonly known as Tuk-Tuk can transport 1,000kg of goods, pump 6,000 litres of water per hour for irrigation and generate 6kW of electricity every hour, thereby solving some of the farmers and rural households’ most immediate challenges. The STI Secretariat under the Office of the President provided a grant to Kevoton Motions through the National Research and Innovation Program (Innovation Fund) for the domestic manufacture of a 3-in-1 trike for mobility, water pumping and electricity generation. Kiira Motors incubated and supported Kevoton Motions to bring their idea to life. The Bingwa trike is relatively affordable for smallholder farmers while equipped with technologies that solve their most immediate challenges — transport, water, and electricity. In Uganda, 90% of the population lives in rural areas while 80% of the households are involved in agriculture according to the Uganda National Population and Housing Census of 2014. However, only 2.9% of the households use irrigation on at least one plot for the first season and 2.4% for the second season. Just 19% of households are estimated to have access to electricity for lighting on the backdrop of an electricity distribution access of 51%. A solution that addresses the household’s challenges is critical in fostering economic development. “Mobility is a fundamental component for rural development, connecting people to opportunities, services and resources necessary for their well-being and economic progress,” says Hon Dr Musenero. “Electricity plays a transformative role in rural agrarian communities by boosting agricultural productivity, improving living conditions, enhancing education and healthcare and enabling economic diversification,” Hon Dr Musenero adds. Dr Musenero committed her support to innovators. “We are behind schedule in terms of innovations and we must therefore work hard to catch up with other continents. My ministry will continue to provide the needed support to innovators to come up with such products,” she said. She further says that irrigation is crucial in ensuring consistent water supply for crops to improve yields and enhance food security. All these three functions (mobility, electricity and irrigation) are key components that the Bingwa trike can be able to execute. The Bingwa trike can lead to rural transformation if it is integrated into the Parish Development Model or other government programs. “We got the idea of developing this engine in 1998 because we didn’t have a product that we could call ours as a country at the time. After attending an exhibition, we started working with Makerere University because of our innovativeness and eventually Kiira Motors under the STI Secretariat that has led to the production of the Bingwa Trike,” says Rogers Mubiru, Founder and Director at Kevoton Motions Engineering Ltd. “We hope that this development will lead to an offtake of 600 units which can be deployed in different sub-counties across the country to enable households improve their livelihood,” Mubiru says. The flag off to Kitgum where Bingwa will be officially launched was also attended by Hon Denis Onekalit Amere, the Member of Parliament for Kitgum Municipality who pledged his support to sustainable products. “Bingwa will solve challenges of our people across the country who are predominantly farmers and live in rural areas,” he said. “This is a welcome innovation but we need to ensure that Mubiru and others innovators like him get the support they need so that our country industrializes thereby creating jobs for our people,” he added. Allan Muhumuza, Mobility Team Leader at the STI Secretariat says that the success of the project has enabled the government to validate an incubation model where a budding innovator, especially in the informal sector is placed under the mentorship of an anchor enterprise like Kiira Motors. “This enables us to transfer skills, utilize existing infrastructure, create institutional capacity and foster synergies towards industrialization,” he explains. Most of the parts used to make the Bingwa Trike are made locally and many can be made by independent suppliers in the automotive industry value chain thereby making the case for localization and value addition of products. The support from the STI, which commenced in August 2022 has led to the Bingwa trike being made with 55% local content, according to Albert Akovuku, the Director of Production at Kiira Motors. “The key parts which have been locally made are the engine, the chassis, the frame and the body panels,” Akovuku reveals. “Specifically, 70 out of 128 parts have been made locally. Mass production will be at the Kiira Vehicle Plant in Jinja with initial capacity of 1,000 units per a year growing to 4,000 per a year in the medium term,” he adds. Realizing the potential of the project, the Uganda Development Bank (UDB) has offered project preparation funding amounting to USD250,000 (approximately Shs900 million) to facilitate the development of the project business plan and production readiness. The Bingwa trike will cost Shs28 million, lower than what one would spend if they were to buy an ordinary tuk-tuk, water pump, and a power generator. The Bingwa Trike uses diesel. With an estimated total addressable market of 100,000 trikes in Uganda in

October 4, 2023

Housing

#OutToLunch: Extended infrastructure will lead to affordable housing in urban areas

OutToLunch: Extended infrastructure will lead to affordable housing in urban areas By Denis Jjuuko The community in Wakiso is stuck with three children whose father abandoned after failing to clear rent for nine months totaling to Shs630,000 or approximately US$160. The father woke up one morning and never returned according to an article that appeared in the New Vision newspaper last week. The eldest of these children is nine years old! When contacted on phone, the father said he couldn’t afford to clear the arrears, the newspaper further reported. As this story was unveiling, the Uganda National Roads Authority (UNRA) posted on its X (formerly Twitter) handle of the ongoing asphalting of the Buwaate-Najjeera Spur as part of the construction of the Kyaliwajjala-Matugga Road. Buwaate had become famous for dust and social media trolling for those who live in this part of the ever-expanding Kampala. Buwaate is about 15km from the main post office in Kampala’s central business district. Since the construction of the road commenced in Buwaate, landlords have been licking their lips with glee in anticipation of increased incomes from their properties. Politicians will claim it is their ability to lobby that led to the construction of the road as they campaign for votes in the 2026 general elections. The construction of a road changes everything in this part of the world, an indicator of how far we need to go to achieve some elusive status as a country. The lack of roads, piped water and electricity is one of the reasons why land is very expensive in greater Kampala and in many other urbanizing areas in Uganda. So, where the roads, electricity and piped water have been extended, property prices go up. In Buwaate, a plot of 50×100 feet or 0.12 decimals is going to nearly double once the road is complete. Landlords will increase rents as people seek to move into this part of the city. So how does that make land expensive? Because few areas have proper infrastructure, areas that end up getting a road become extremely expensive. Areas that have a bitumen standard road, water and electricity make life easy for those living or planning to settle there. They don’t have to pay much to extend electricity to their homes or suffer fetching water due to lack of access to piped water. In an area like Buwaate, if a 50×100 feet plot has been selling for Shs70m, it will go to Shs100m or more by the end of this year if it hasn’t gone up already. This means that people who can’t afford there, will now buy further away. Some will sell in Buwaate and look for land in Kalagi or Busiika thereby creating demand in those area. Simple economics teaches us that increased demand leads to increases in prices. As demand increases in these areas, landlords will increase the price of land and rent too thereby making it difficult for men like that father of Wakiso to afford a decent house for their children. So, if we want decent affordable houses, what do we have to do? Extend asphalt roads, electricity and piped water to every little part of greater Kampala. Have good hospitals and schools that are affordable in those areas too and have a plan on reliable and affordable public transport. If we had those everywhere, asphalting a road would cease to be news. It would stop landlords from smiling every time they see a grader in their area. Electricity and piped water would cease to be part of texts in property adverts and promotion campaigns. If there is a good road everywhere, a compactor in an area wouldn’t lead to increased property prices. Electricity poles or trenching earth for piped water wouldn’t lead to abnormal increases in prices. People would easily live in Kiringente in Mpigi town or Namagunga near Lugazi and still be at their desks at 8.00am on Kampala Road. Greater Kampala isn’t a very big area where the government can’t do this kind of work. The Buwaate-Najeera Spur that is causing all sorts of excitement is just 5km long. The Kulambiro Ring Road that caused much more excitement earlier is approximately 3.5km. Spear Motors to Ntinda is just 2.2km. So, imagine if government constructed just 10km every year in greater Kampala, the price of land would significantly go down thereby making houses affordable. I have seen some social media posts by the Ministry of Lands, Housing and Urban Development and its partners notably Habitat for Humanity promoting the upcoming annual Uganda Housing Symposium and the theme is on affordable housing. I hope that they can look at how extending infrastructure as mentioned above could solve the affordable housing issue especially in urban areas, obviously one of the most significant challenges our country is facing today. Children who are worried of a landlord throwing them out of a house will be affected mentally, denying them the ability to develop to their full potential. In fact, they would also be suffering physically as well. The writer is a communication and visibility consultant. djjuuko@gmail.com

September 21, 2023

News

Help! How do I revive my dying project of housing for 30 families?

By Joachim Buwembo …possibly, the only person Ugandans despise more than a pedophile is a male aged above forty who doesn’t own his shelter… Fellow Ugandans! Let me share my ongoing painful experience that started with a lot of hope six years ago when I decided to organize 30 residents mostly in Kampala’s Nakawa Division to build a modern housing estate on cooperative basis. In 2017 after 25 years of practicing journalism in different countries and capacities, I believed I was done with formal employment and when I saw an opportunity to serve humanity while enjoying it at the same time, I went for it. As a consultant helping to develop content for the youthful Urban TV then, I had commissioned and directed a series on the fate of the cooperative movement in Uganda. It wasn’t very exciting for the young Urban audience but it was so deep and insightful that the parent company’s newspaper, The New Vision, adopted it for print and it caught the attention of some interested stakeholders. One morning, a beautiful young lady of small build turned up at the New Vision reception asking for me. She looked really young and I mentally started dismissing her thinking she wanted an opportunity to appear on TV as a presenter of some social programme (there are always so many of those). But Miss Petite turned out to be the general manager of the only cooperative union our series hadn’t touched and the reason was simple: Just like its GM, the Uganda Housing Cooperative Union was too young to have existed during the period under review of our series when the cooperative unions (umbrellas of primary cooperative societies) were mostly about agriculture. For the next two hours, I set aside my schedule and listened attentively as Fiona – that is her name – introduced me to the concept of housing development on cooperative basis. By the time I saw her off, I had already decided what I was going to do besides supporting the union with publicity: organize people to build quality houses affordably. I already had a relatively nice house myself and was trying to figure out how to protect or dispose of another one I had built for my then freshly deceased mum, but I knew of so many people working at steady jobs who did not own their homes. Fiona had promised to take me on a tour of an estate (she soon did) built by a cooperative of poor urban women who were living with a lifelong health condition, of course under guidance of her union. I decided there and then to organize people and help them build a modern estate on cooperative basis. Apparently I was a Rotarian at heart five years before joining Rotary. I needed to help people, because all Ugandan cultures equate maturity to ownership of one’s shelter. The natives of Kyadondo say akezimbira tekaba kato (one who builds for himself is not young) and possibly, the only person Ugandans despise more than a pedophile is a male aged above 40 who doesn’t own his shelter. The preparation took about three months. First Fiona’s team came and started training the people I mobilized who included some civil servants, ‘corporates’ business people of medium to small scale. At the end, everyone knew fundamental and principles of cooperatives, and the basic laws governing them in Uganda. We ended up with about 50 willing members. To register, we needed at least 30 members with national IDs and these readily signed up. We agreed to pay annual subscription of Shs20,000 each for administration and a monthly Shs200,000 per member for the actual project. Members seemed excited especially when working out different scenarios with numbers, it was clear that building a smart, modern house would cost much less when done with economies of scale in a group that would be buying materials from the factory, shared utilities and facilities like sewerage, recreation areas and roads, while the union was providing technical assistance with architecture, civil engineering supervision and accounts. One year later, the group had raised enough cash to buy four acres complete with a title, some 30km from the city on one of the highways. But for years after, it is still just that – a piece of land. What happened? Or what did not happen? The first sign of trouble sounded like a joke: “But when will ‘they’ come and help us?” someone asked at a meeting. “They” must have meant either government or some donor organization. In meetings, some members started mentioning government programmes like operation wealth creation, which the group should try and benefit from. Then contributions started dwindling and by the time the land was bought, only half of the original 30 were upto date. This meant that after 12 months, some people had contributed the expected Shs2.4m each while others hadn’t. By the end of the third year, only eight members were up to date with a contribution of Shs7.2m. The Executive decided to stop coxing people to pay up and urged everybody to first build their contributions to Shs7.2m, so that they can participate in the next level. Ideas being mooted include diving the membership into clusters of every five that attain the Shs7.2m per person to develop their mini estate within the estate. Challenges now faced include the law – which requires a minimum of 30 to remain and enjoy the privileges of a cooperative society; members wanting out that “the coop isn’t working for me” (as of they are working for it); the likelihood that the clusters of 5 mini estates will not enjoy the economies of scale that the whole 30 would have; silence by dormant members who are not saying what they want or don’t want. By the way, you can’t terminate dormant members whose IDs you used for registration as the society will cease being legal, and recruiting new ones is tough given the inactivity. So dear Ugandans, I bring my dilemma to you. As initiator

August 17, 2023

Out to Lunch

#OutToLunch: Government can replicate model of commercial banks

By Denis Jjuuko Uganda’s commercial banks have over the last few days been releasing their annual results, some registering record profits. One of them led the pack with an annual after-tax profit of US$100 million! It must be great time to be a banker! But then if you’re an ardent reader of Ugandan newspapers, you will notice that some dailies carry at least two pages of properties and assets being advertised on forced sale by auctioneers working for the same banks. On Facebook and Instagram, once you get your way past Ugandan authority access restrictions, you will notice many properties are on sale, coerce-fully. In many suburbs, many properties have been, in the boldest of letters, an declared bank properties and are up for sale. Of course, policy makers argued that government had no business running banks and that banking wasn’t profitable so we quickly sold them off for a song. Just like other industries. The private players who bought them simply reorganized them — sold off the fat such as properties and remained with the lean meat. They became a little bit more efficient, cutting off government fat cats and their relatives that were getting loans and not paying them back. Perhaps, that explains the number of properties that are being advertised for failure to pay back. Nobody should begrudge banks for being able to turn a profit. Like all commercial enterprises, they are in it for profit. Having seen what is possible, government is arguing that they made mistakes and they want to put their right foot back in. I must commend them for seeing the light though they would need to still use the same efficiency or better that commercial banks have deployed that have enabled them to become so successful. And the talk that they want to get back in must end so that we see action. However, they should do more than commercial banks. Since they will be using public money to set up, how can they provide affordable loans so businesses can thrive? The most common way of lending in Uganda is through providing a property as security that is higher in value than the loan amount being advanced. This model ensures that people will do everything to pay back so that they don’t lose their valuable assets. This model doesn’t necessarily put into account the actual situation young entrepreneurs face. Young people and even women rarely have assets to mortgage so they are naturally excluded from accessing capital. They are beaming with ideas and have the energy to work but don’t have the means that can lead them to access capital. Banks also know that it is a high risk to lend in Uganda so the rates are naturally high. They also spend a lot of time trying to avoid lending the money (they make more by lending to government where the risk of non-payment is low). So if private banks are making hundreds of millions of dollars, a government commercial bank can also make that money but invest it in its people affordably. Also, government can invest in sectors where commercial banks may not want to do so. Take an example of Kampala. I don’t think there is any proper city anywhere in the world where the major vehicular form of public transport is a matatu — a 14-seat passenger vehicle (that was previously a cargo van in Japan). Cities use bus transport that can carry at least 90 people. Of course, trains, trams and other means of public transport help to ensure that people move easily. A few private players have tried to introduce buses in Kampala. City, Pioneer, Awakula Ennume and now Tondeka. Kalita has been operating electric buses from Kiira Motors on the northern bypass. Kampala is one of the first cities on the continent to have public fully electric buses but they are just too few and only operating on one part of the city. The cost of an electric bus is higher than a diesel or internal combustion engine (ICE) bus of the same size. That perhaps explains why Tondeka is operating ICE buses. If they approached a commercial bank to lend them money, the bank manager would have the experience of Pioneer and City at the back of their mind. With Pioneer buses being eaten by termites around Namboole, a bank manager would think that public transport is not profitable and then stay away. Yet if you want to develop a country, you have to ensure that its population’s cost of living is low or affordable. It is the same issue farmers face. The rains are here. Can they afford inputs? Agriculture which is touted as the sector that can get Africa out of poverty is left to subsistence farmers, whose activities cannot meaningfully change their fortunes. That is why we cry to Ukraine, a country at war, to continue supplying us food when we are largely peaceful and rains dropping from the sky with reckless abandon. The writer is a communication and visibility consultant. djjuuko@gmail.com

June 19, 2023

Out to Lunch

#OutToLunch: How government of Uganda can solve its motor vehicle problem

By Denis Jjuuko One way to tell that you have arrived at a government of Uganda facility such as a local government district or even ministry headquarters is the sight of motor vehicles rotting away in the compound. The government seems to find it easy to procure new vehicles than maintaining and servicing their existing fleet. Some of these vehicles such as tractors, rollers, excavators and such other equipment cost billions each to buy but even the usual ordinary standard pick-up truck is expensive. One would think that maintaining and servicing these vehicles is cheaper and indeed more prudent than to buy new ones but this is Uganda. This could have prompted the Ministry of Finance to announce that they wouldn’t be a budget for new vehicles for the next financial year. The news articles that announced this revelation didn’t mention whether there will be a budget for maintenance and service! There is perhaps nothing that public servants love than a vehicle that comes with their offices. A car is a status symbol in Uganda for many since the majority of people come from poverty-stricken families. A car announces their arrival. One with the red or even blue license plates puts them on a pedestal they couldn’t probably have imagined while growing up. In the 1990s, a fight erupted among the highest members of the judiciary. One judge was fighting with his superior over an official car — a Mitsubishi Pajero with a turbo engine or known as an Intercooler then. One judge wondered why his car wasn’t an Intercooler and created such a public circus over it. Politicians once appointed in office, the first thing they want to know is which car has been assigned to them and if they can upgrade with the latest version. When the current cabinet was appointed, rumors surfaced that some ministers claimed their predecessors had put juju in the vehicles and therefore needed new ones! I don’t know for how long Ramathan Ggoobi, the finance permanent secretary and secretary to the treasury, will be able to withstand pressure from politicians and public servants who want to buy new vehicles. Admittedly, this isn’t the first such directive government has ever issued. But I don’t remember if this was ever implemented. We shall wait and see. Though the obvious thing if the ministry of finance wants to control its expenditure is by ensuring that its motor vehicle fleet is in good working mechanical conditions. Largely, the government buys these vehicles when they are brand new and if they are serviced well, they should be able to serve beyond five years. I was told that government also doesn’t do comprehensive insurance for its fleet. This means if a car is involved in an accident, there is no compensation for it. So instead of getting insurance companies to replace the vehicle, government simply procures an new one. Buying vehicles all the time is more expensive than insuring them. But does the government need to provide cars for all its officials? In many countries and even companies in Uganda, officers are facilitated to buy their cars. This can be done by providing interest free loans where the officer buys a car that they use for their official duties. The payment is deducted every month until the car has been paid off. The officer is then paid mileage every time they use the car. So the government wouldn’t be involved in maintaining and servicing the vehicle or selling it on the cheap just because the car has done five years. The officer knowing that this is their car, they will handle it with utmost care. Many wouldn’t demand for the expensive SUVs that they use today. To make these cars cheaper, government can do a partnership with some of the vehicle manufacturers to assemble the cars in Uganda. Already, Kiira Motors has a plant nearing completion in Jinja. This would also create millions of jobs and kick off Uganda’s nascent automotive industry. Alternatively, government can do what many organizations are doing. Hiring and leasing vehicles for its officers. Many companies and development organizations don’t own cars even those that are branded with their logos. They simply lease them and once they make about 150,000km on the odometer, they return them to the lessors and get new ones. This minimizes a company’s capital and operational expenditures. Maintenance and service is handled by these companies, freeing the lessee from the hustle of fleet management. Of course, there are vehicles that government may still have to buy such as police and military vehicles and ambulances. But also, it can still lease them. The writer is a communication and visibility consultant. djjuuko@gmail.com

June 19, 2023