Government of Uganda . – Page 4 – Prime Time Communications

Out to Lunch

#OutToLunch: Survival by borrowing entrenching household poverty

By Denis Jjuuko Somebody told me that to survive in Kampala, you need to learn a few tricks. One of them that caught my attention is on lending money to friends and relatives. Like almost everyone in Kampala, he receives several requests. A relative who needs to borrow to pay school fees, buy food for their family, pay rent, take a sick child or parent to hospital or enjoy a night out in the bars with the most dazzling lights. When he had just started working, he told me, he almost realized that he didn’t have any money left after he had met most of the borrowing requisitions sent his way. Years later, he came to realize that those who borrowed never paid back. In fact, some even returned to borrow more. He had to be ingenious if he was to survive in the city. He devised a method of only lending without expecting anything in return. So, if a friend, co-worker or relative called to borrow, he would only lend what would not affect him significantly. If somebody called to borrow say Shs200,000, he would offer to lend them Shs50,000. He never expected this money to be paid back. He never calls them to remind them of their obligations. If anyone paid back, he considered it a bonus. This method also worked as a deterrent. The majority of those who borrowed never came back to borrow again. Those who did, he would remind them that they hadn’t paid back what they had borrowed earlier. Many would pretend to be ashamed but at least he knew that person would never disturb him again. He says this model has worked for him and saved him the anguish of expecting money from people who had no intentions of paying back. I was reminded of this last week when a study funded by the central bank indicated that the majority of adult Ugandans or 17.2 million people out of 24.6 million survive by borrowing. The snippets from this study have made national headlines in some of the daily newspapers. For a country to have 70% of its adult population surviving on borrowing should be worrying. Uganda being such a young population, it means that most of these people are unemployed or earn so little to “afford life.” And when they retire or unable to work, they won’t have any pension to depend on. Many adult Ugandans who aren’t borrowing have become beggars. Parents begging their children. Couples begging their partners. Parents begging their sons and sometimes daughters in law. When we talk about borrowing, it gives a connotation that at one stage, money will be paid back by the borrower. Although it wasn’t clear in the report who lends these Ugandans money, many borrow from friends and relatives as the case of my friend. Money that is usually not paid back. To be honest, many of the borrowers have genuine problems largely based on our lack of good public schools and health facilities. Many are dehumanized to borrow and if they had a chance to find employment, they would diligently work. That is why Entebbe airport departure lounges are full of young people going abroad to seek employment. Had they been lazy as some people (especially politicians) allege, they wouldn’t be frequenting the Arabian deserts. Since the money borrowed is largely never paid back, the lender is denied an opportunity to invest it in worthwhile ventures which could provide a return on investment. That is why one of the reasons people end up without sustainable pension. They spend a lot of their resources while working to look after other adults, thereby playing the role of a government without the resources of a government. When time for retirement comes, they have nothing sustainable to rely on. The borrowing cycle continues for generations thereby entrenching household poverty. Some people call this “black tax” — money black people pay to sustain their extended family and a host of friends. It also fuels corruption. Few people are going to do the right thing when they have a sick mother at home and are struggling with hospital bills or when the children are home instead of school. Government needs to find a way for the majority of people to find sustainable jobs, provide at least affordable public health and education services so that they don’t depending on borrowing from people who also don’t have much. That would require the reduction on the largesse of government officials on stuff that provide no real value, provide incentives to local businesses to thrive instead of employing methods that lead to their closure while at the same time attracting the elusive foreign direct investment to spur economic growth. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2024

Out to Lunch

#OutToLunch: Home ownership one way to a country’s development

By Denis Jjuuko More than 20 years ago, a man set up an office at the current Serena Conference Centre. He seemed to have a huge advertising budget and didn’t spare a coin in pushing his product. Newspapers featured him. Radio presenters talked about him. I was in active journalism at the time and looked out for him. He gave me an appointment at 4.30am. Any chance to change to a favorable time fell on deaf ears. 4.30am, or nothing. I agonized. How would I make it from my home to his office in the middle of Kampala? I was about to accept but he wasn’t the Pope, US President or Osama bin Laden. Why would he only have time at 4.30am? The article I was to write was to enhance his profile for free. But I also thought he was pretentious, trying to prove to a journalist that he works so hard. I gave up on him. A few months later, his property brokering business started foundering. He never owned the properties he advertised. He was a broker. But he was smart enough to set up an office at a fancy location. Most of his colleagues operated on the streets of Luwum and William. Those who had found a fortune, their Toyota Mark IIs were their offices and impressing meant wearing sharp pointed fake-crocodile skin shoes. Since he was different, with an office, people trusted him and gave him their money. Some of the people who had told him they owned the land were fraudulent. The land either didn’t belong to them or the families were fight for every square foot of it. Since he was the one making the connection between the buyer and seller and sometimes received money from clients, whoever didn’t get their land came for him. He would end up on the beaches of Luzira. Having learnt from him, another broker went a step further and set up a dingy office in Old Kampala. Although it wasn’t glamorous, he had one unique aspect about him — he and his associates owned the land. He bought large swatches of land in areas like Kulambiro, Buwaate, Kira and divided them into 50×100 feet plots (approximately 11.5 decimals). Kampala was expanding at the time beyond its original seven hills. People who had seen their retrenched or retiring parents move from fancy homes in Kololo into poverty thought to act differently. They would build houses. The economy was growing, and a semblance of a middle class was emerging. There was a ready market of people streaming to his Old Kampala office to buy land. Unlike his Serena Conference Centre predecessor, land titles were easily availed to whoever purchased from him. He too advertised heavily, promising Ugandans to live in organised estates with access roads and all that. People saw an opportunity to live in a community that was not too much of a slum at an affordable rate. Before a place sold out, another new estate would be opened. Eventually, there was an estate on every major road to Kampala to cater for every purchaser’s interests. You know how Kampalans love living near highways that lead to their ancestral villages! To further impress, he put up a mega building in Old Kampala and expanded into a quarry business along Jinja Road. A building hardware shop was set up, if you bought a plot of land, he would give you a few bags of cement so you could start building your dream home! Anyway, that growth was funded by banks which meant they would hold on to the land titles. So, people who purchased land took away agreements instead of titles. Some of the land was far away from the city yet the majority of his clients were first home owners. The others were speculators involved in land banking. The estates were not selling out at the previous rates. People who needed their titles were not getting them. That led to people stopping buying from him. The original landlords were also in some cases not fully paid. Court appearances became his preoccupation. The other week, the banks won a case against him that declared him bankrupt. It was one of the saddest stories of Ugandan entrepreneurship. A self-made man who had made it to the top. Yet he is not the only Ugandan real estate entrepreneur to go under. One of the challenges of real estate in Uganda especially the one where the model is buying land and parceling it into small plots for selling is that most of these estates are deep in areas that lack access and basic services today. First home owners shun them yet they don’t have resources to buy in their preferred areas. Second home owners already have land in areas that these estates sold 10 or so years ago. Or they are looking for bigger land for their country homes. Other investment vehicles like treasury bonds and unit trusts are competing with land banking. Wrangles over land are common as family members of the original owner always come up with counter claims against each other. Squatters are everywhere and they are more protected than the owners in some cases. Police is not competent or facilitated to investigate these cases. Courts take forever to decide these cases. Yet home ownership is one way that countries develop. People who own homes won’t wake up to burn a city down. They work hard for its development because they have something to lose. If we need to develop this country, we must devise means that enable young people to easily own homes. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2024

Out to Lunch

#OutToLunch: How Kikuubo can transition from trading to manufacturing

By Denis Jjuuko A few weeks ago, I was invited for a meeting in Jinja, which is about 80km away from Kampala. In order to make a small saving, I decided to drive with a friend who was also attending the same meeting. Our meeting was scheduled for 10.00am. We decided to leave Kampala at 7.00am in order to make it to Jinja in time. We thought that two hours were enough to cover the distance. Because my friend lives around Bweyogerere and it was early morning, we didn’t anticipate any difficulty in being in Jinja well ahead of the scheduled time. We decided to use the main Kampala-Jinja Road instead of the one through Kayunga that I normally prefer. Afterall, my anticipation was that we would be driving against traffic as the majority of people who live in Mukono would be coming into Kampala. The traffic was instead bumper to bumper in Namanve and Sseeta and we thought that once we go beyond Mukono town, we would be able to move faster. We continued our drive and along the way we started realizing that we could not make the trip by the scheduled time. We arrived in Jinja about 15 minutes late. I remembered this while watching clips from a meeting between the president and the traders who are protesting the tax system. The president advised them to become manufacturers instead of importers of finished products. If you are a regular reader of this column, you would know my position on manufacturing. I am an advocate because there aren’t many countries that developed without focusing on manufacturing. Through manufacturing, countries are able to employ large numbers of the working age population. Manufacturing ensures sustainable jobs with predictable regular income, a prerequisite for economic growth and wealth accumulation. When people have a regular predictable income, and not depending on chance, they can be able to invest in long term projects such as housing. Banks can offer low interest long term e.g., 30-year mortgages. Business people would invest in sectors for long-term knowing there are people who will be able to afford their products or services. When the majority of people’s incomes depend on prayer and the intercession of the holy spirit, investors keep away. The people can’t save. You can’t save what you don’t have. Banks, instead of lending money for business, they focus on lending to the government. They are nearly sure of being paid back than when they lend to businesses who don’t have an assured market. Anyway, if Uganda is to become a manufacturing hub as the president wants it to be, there are certain things that government must put in place. One of them is the highway not only to Jinja but to the Kenyan border. There are plans to build the Kampala-Jinja Expressway but they remain largely plans todate. If you are a regular user of the road beyond Jinja, you know that jam builds up between Kakira and Iganga (Kakira and Jinja is smooth because it is a four lane road). Maybe the Kampala Jinja Expressway should become Kampala-Iganga or even Malaba Expressway. If people are spending 3-4 hours to cover a distance of about 80km, like we did for the Jinja meeting, it will become costly for manufacturers as this is the main route for their raw materials and finished products (to the port of Mombasa). But even if the road was wide and smooth, road transport is expensive for manufacturers. Railway transport provides solutions but plans about the Standard Gauge Railway (SGR) became a mirage. Yet at one stage we had a railway line that almost connected all the major parts of the country. We also have Lake Victoria; it can solve some our bulky transport woes. The majority of Ugandan traders start after dropping out of primary or secondary school. They learn trading and after a few years of frugality and tenacity, they make it big. They will never invest in stuff that are not tangible such as research and development (R&D) which is key if any country is to become a hub. What most traders know is that if you pay this amount of money, you get this amount of goods and sell them at that amount of money. That is why EFRIS is a big issue yet maybe it shouldn’t. Government needs to appreciate their strengths and limitations and invest in R&D on their behalf, showing them which sectors or products, they can invest in as manufacturers and handhold them until when they can transition from informal traders to manufacturers. It can match them with foreign investors for joint ventures and most importantly for technology transfer and support them on issues such as corporate governance. There are already traders in Uganda who have made this transition, how did they make it? It is the story government should be telling while dangling the investment incentives traders need to make the transition. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 12, 2024

Out to Lunch

#OutToLunch: Ideas on how the corrupt can protect their loot

By Denis Jjuuko There is probably a high-ranking government official on every flight that departs from Entebbe going for some meeting, family holiday or benchmarking expedition somewhere in a country they consider developed. On arrival at the airport of their destination especially where there is no protocol official waiting for them on the tarmac, they follow every single rule, queueing up like everyone else to clear through immigration, customs and grab a taxi to their hotel. The trip from the airport to the hotel mesmerizes them, openly admiring how the country is so beautiful and organized. They engage the taxi driver in small talk about the country and the city. On arrival at the hotel, they realize that they don’t have to stock up on bottled water, the tap water is safe for human consumption without first boiling it. In the bar for some drinks, they see a young woman jogging at midnight alone. They see another walking in the street not worried of anyone giving them a scorpion kick so they can violently steal their smartphone. They have tried since their arrival to count potholes in the city and it ended up as an exercise in futility because they couldn’t find one. They shake their head and wonder how the country made it. In that moment, they promise to do something on their return to make Uganda better. For a few days, they note everything. On arrival at Entebbe, whatever they have learnt seem to evaporate from their head. They jump the queue at the airport. Jump into their SUVs and abuse every traffic rule in the book. At the next conference in Kampala, once they see journalists with cameras, they complain about the mafia, about corruption and talk about mindset. They forget that actually they occupy the offices where they can make a difference. They know that at their office desk, there is a heap of papers that need their signature but they have been too lazy to attend to them. Some have been there for months. In the meantime, suppliers are collapsing because they have not been paid for services and goods delivered. They are happy to work in a building with a leaking roof, a compound that isn’t being slashed and floor tiles that are bouncing and need refixing. Instead of working on these small things, their mind is on buying an apartment in the well-run country of their last visit. Yet that country is well run by their counterparts they just visited. The technocrats in the well run country aren’t special or even smarter than the Ugandans. Some even attended the same universities. They are just diligent. The law works as well. The price of being corrupt if caught is high so everyone tries their best to do their job. Some of the things that make these so-called developed countries are not even hard to do or too costly to implement for any government. For example, how much would it cost to identify a tree species that can be planted along Ugandan roads to make them a little beautiful? With Uganda’s climate, many of these trees wouldn’t even need watering. They can survive on their own. With all the stones we have everywhere, why is paving a road or walkway such a hard thing? You can cut the stone and shape it and a walkway is fixed for a century. Many technocrats have built hotels everywhere to tap into conferences and events. They can charge a premium if they made sure the country works. The country won’t attract international conferences when they see trending videos of thugs on boda bodas waylaying anyone with a bag in broad daylight in the middle of Kampala. They will wonder what will happen to them at night. The organizers would not bring a conference here unless they are sure that if any delegates had a medical emergency, they would be properly taken care of. If Nairobi is our referral hospital, then they will take the conference to Nairobi. The government technocrat who built a “fancy” hotel will not make money. Foreign investors won’t build their factories here and the local businessmen are too poor to do so as well. Many young people won’t have sustainable jobs. Apartments in Najjeera and Kyanja will remain empty or occupied by slay queens or six-packed boys who can’t consistently meet their rent obligations. Some may even offer to pay in kind. Our corrupt lot need to think of a time they won’t be in government and make sure the country works for everyone. That way they will protect their loot and most importantly create a generation that won’t have to be corrupt to live a good life. That way their grandchildren would retain what they have stolen today. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 12, 2024

Out to Lunch

#OutToLunch: Superstition and witchcraft keeping Ugandans poor

By Denis Jjuuko Many years ago, a car carrier was parked on the side of the road that connects Kireka to Kyaliwajjala on the outskirts of Kampala. The car carrier, comprising of a truck head and trailer seemed to be still in good working conditions. Days turned into weeks, months and years with the truck still in its position, on the pavement facing the direction of Kireka. Nobody seemed to know the owner of the truck though some alleged it belonged to an entrepreneur who had died in the infamous “balance the boat” accident of a few years ago. At one time, stories go, authorities tried to tow it away but they brought a weaker towing truck probably with a team that didn’t know how to disengage it so that it can free wheel. Once they failed to remove it, the truck became a legend of myths. If you used a boda boda along this route, the rider would tell you all sorts of stories — that the truck speaks at night—like a human being and can even call out your name. That it was a sanctuary of all Uganda’s spirits. The truck was not only an eyesore, it had become a road safety hazard. Last Saturday, a young man involved in the Kampala auto show perhaps in a bid to promote his upcoming event decided to do something. Working with UNRA, he brought in a team of mechanics that knew how to disengage it and make it towable. Once he arrived on the scene, a sizeable crowd formed at a respectable distance. No boda bodas were willing to work in the area. They all wanted to witness history — not of a rocket trying to go to Mars or another planet but an old truck being towed away. One of Uganda’s leading television stations sent in a crew for live coverage. Journalists from many media houses arrived in droves to cover a truck being towed away. A bigger breathless crowd waited on X (formerly Twitter) in apparent anticipation of what may happen making it one of the most trending topics on the social networking platform in Uganda. Within about five hours, the truck had been disengaged and was able to be towed away. People formed small groups and wondered in whispers whether the crew won’t be struck at night while others drove by in the morning to confirm the truck didn’t return by itself in the night. The truck didn’t have self-driving capabilities. Ironically, all this happened nearly a stone’s throw away from the Uganda Martyrs Shrine in Namugongo, a testament of Uganda’s belief in Christianity and confirmation of people’s beliefs in the underworld. Anyway, Ugandans seems to be very spiritual. Christianity or even the Uganda martyrs didn’t take away their other beliefs. The wide belief in the truck being a sanctuary for the spirits also showed one of the reasons we are poor. Many people spend most of their time praying instead of working. Every little challenge is prayed for. Visits to the witchdoctor’s office are organised on a daily. There are even taxi stages in Kampala known to lead to shrines. You have heard of Stage y’Abakyala. Western embassies accredited to Uganda claim that people submit paper applications for visas spread with blood, feathers and other fetishes. Almost every business that fails is blamed on witchcraft of the neighbours or some stepmother or co-wife. At workplaces, many people don’t greet others, shake hands or come in close contact with others in fear of witchcraft. A person who succeeds at work is believed to have performed juju on the boss. At one stage, a musician was alleged to have got his wealth and fame by making regular visits to the Lake Victoria floor. He got cheeky and released a song about it, thereby making more money from those who were spreading the rumor. Conmen send messages of how the illuminati can make you wealthy if you paid them a connection fee. The reason such conmen exist is because people believe in the illuminati. The illuminati in Uganda is euphemism for witchcraft. We hear that some national sports teams sometimes have a witchdoctor on retainer yet the performance never improves. Kids are sacrificed every day in search of wealth. Those seeking for love or a pregnancy spend countless nights at premises of witches. Witchdoctors are usually poor so how can they then make one rich if they can’t do it for themselves? Don’t they want to be wealthy too? At hospitals, especially the public ones, representatives of witchdoctors set up bases where they encourage patients with chronical illnesses to discharge themselves so that they can treat them in their shrines. Desperate for a cure, many end up realizing they have been taken for a ride when it is already too late. Businesses can’t grow when we are consumed into spiritualism, superstitions and believing every setback is a result of somebody bewitching us. Every success can’t be because your witchdoctor is doing magic. Every failure can’t because of your step mother is bewitching you. Previous failures to tow a truck, like we saw on Saturday, had nothing to do with witchcraft rather poor understanding of vehicle systems. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 8, 2024

Out to Lunch

#OutToLunch Business bet: Grow food within 120km of Kampala

By Denis Jjuuko Last week we predicted that most parts of greater Kampala will be urban in 30 years. Before that, Kampala’s population is estimated to grow to approximately 7.5 million people in the next 10 years according to the World Population Review. Urbanization means that they will be less land devoted to agriculture within Kampala’s 40km radius. Yet people still need food. Africa imports food worth approximately US$35 billion a year according to the African Development Bank and is estimated to grow to more than US$100 billion in the next 10 years. This is a result of “population growth, low and stagnating agricultural productivity, policy distortions, weak institutions and poor infrastructure,” says a report by the Food and Agriculture Organisation (FAO), a United Nations agency. Many of African dollar or even shilling billionaires are involved in food. In Uganda, we even import cabbages, onions and such other things! Yet our land is so fertile and the climate still favours agriculture. Uganda has a water body almost everywhere and even if you are to sink a borehole, the water isn’t that deep in most parts of the country. As Kampala expands and its population grows, there will be more demand for food than ever. The government is pushing industrialization as one of the ways to create the elusive jobs. With the internet and advancements in technology, many non-traditional jobs will be created leaving many youths working outside the agriculture sector. As Kampala expands, some people will become middle class. The middle class will demand more organic foods. They also don’t work in the gardens. Over the last few decades, many people have abandoned agriculture preferring to look for jobs in urban areas. The declaration that now some towns are cities will also lead to more people migrating to urban areas in search of jobs. At the end of the day, they will need food. There is a news video circulating online that the price of Matooke, the staple food in many parts of Uganda especially the populous central region has significantly gone down over the last few months. This has been largely attributed to the COVID-19 pandemic. However, the market and generally demand for food is enormous in central Uganda given the way Uganda’s economy is structured and the level of urbanization. One way farmers can cut costs and increase their incomes is by growing food that is needed in a particular market. If, for example, you grow a particular food crop where the market isn’t available it becomes expensive to transport it to the market. Let us take an example of Matooke. If you grow Matooke in western Uganda, the transport costs are enormous to bring it to Kampala where the market is. This means that the farmer will get less as the traders have to factor in the cost of transport. In the news video I referred to above, the farmers in Isingiro say the price of a bunch of Matooke is now between Shs500 and Shs3,000 instead of Shs15,000 on average they were being paid recently. In Kampala, a bunch of Matooke costs between Shs5,000 and Shs15,000 today from about Shs12,000 to Shs30,000 a few months ago. This means that most of the money the farmer could get is now taken by the transport man. With increments in taxes levied on fuel, the farmer will get much less. As you know, our value addition on Matooke is still in its infancy even though there is a factory that is being set up to make flour among other products. So the best bet for a farmer now to increase their profit is to grow food within a radius of about 120km from Kampala. This will cut down the cost of transport significantly and avoid price fluctuations that result in flooding the market. When a farmer is far away from the market, they may not be able to predict the market as they need much more time to bring the product to Kampala. A farmer within 120km of Kampala can easily monitor the market in Kampala and decide whether to bring the Matooke to the market or not since the delivery period is short. In two hours, a farmer can have his Matooke on the market if the plantation is within a radius of 120km. This calls for zoning the country so that farmers whose products are perishable like Matooke grow it near their biggest markets. Produce with a long shelf life can be grown anywhere even though the transport challenges would remain. So for those who are looking for post-COVID-19 business opportunities, growing food within a radius of 120km from Kampala is a smart bet. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 8, 2024

Automotive Industry

Kiira Motors unveils the 2024 8-Meter Kayoola EVS Model

6th June 2024 – Kiira Motors Corporation today delivered a batch of eight (8) 8-Meter Kayoola EVS buses produced at Luweero Industries Limited in Nakasongola to the Kiira Vehicle Plant in Jinja, bringing the total stock of Electric Buses produced in Uganda to fifteen (15). This has signalled Kiira Motors’ readiness for delivering bespoke electric mass transit solutions for the African market. The 2024 8-Meter Kayoola EVS is a fully electric city bus with a nominal range of 200 kilometres on a full charger and capacity of 56 passengers. It forms the latest offering from Kiira Motors’ rich portfolio of state-of-the-art Ugandan-made buses. The bus is built to offer the utmost comfort and convenience with features like infotainment systems, CCTV cameras, E-Ticketing & Cashless Payment Systems, Wi-Fi, inclusive design for the elderly and persons with disabilities, USB charging, ample carrying capacity, and the highest quality and safety standards. The convoy of 8 buses caused a stir as they weaved through traffic from Luwero to Kawempe, across the Northern Bypass for a brief stopover at the Kisaasi roundabout before proceeding to Bweyogerere and finally to Jinja covering a distance of 236 kilometres. Hon. Prof. Sandy Stevens Tickodri-Togboa, Kiira Motors’ Executive Chairman, said, “Uganda’s push towards becoming a net source of e-Mobility Solutions in Africa is steadily getting closer and we are proud to be contributing to this agenda. This progress has been made possible by the strategic partnership we have fostered with National Enterprise Corporation and its Luwero Industries Limited subsidiary.” He added that following World Environment Day – which is celebrated internationally on the 5th of June every year – and with the knowledge that Kampala’s air is nine times more polluted than the World Health Organisation (WHO)’s recommended limit[1] – more Ugandan public and private sector players need to embrace environmentally sustainable means of mass transit for the good of the environment with solutions that offer quality and value for money like the Kiira Motors portfolio of products. The company is also looking to mainstream the deployment and distribution of its fast-charging infrastructure to cater to its customers and other Ugandans who have embraced the electric vehicle transition. Eng. Ian John Kavuma, Kiira Motors’ Quality Inspection and Testing Manager added, “We are in the process of onboarding several partners with whom we shall work to ensure that a robust charging network is established across the country in line with the National E-Mobility Strategy for a seamless electric vehicle ownership experience.” Kiira Motors offers fast-chargers ranging between 60kW and 360kW. The 2024 Kayoola EVS comes in the following variations: 18-meter EV with capacity of 120 passengers; 12-meter EVS with capacity of 90 passengers; 10-meter EVS with capacity of 70 passengers, and 8-meter EVS with capacity of 56 passengers. ENDS For orders, go to: https://bit.ly/kmcproducts For any inquiries, send an email to: sales@kiiramotors.com | info@kiiramotors.com [1] https://globalpressjournal.com/africa/uganda/trouble-breathing-kampala-quite-likely-air/

June 7, 2024

Out to Lunch

#OutToLunch: Patching up potholes and lighting ip expressways shouldn’t wait NAM/G77

By Denis Jjuuko In the early years of the National Resistance Movement (NRM), Dr Samson Kisekka was appointed Prime Minister and then Vice President. Kisekka was said to be a rich man who even had a certain part of Kampala named after him. He had built a modern private hospital in the 1970s in Makerere Kivulu/Kagugube area near Old Kampala. When traders of motor vehicles set up shop nearby, the market became known as Ewa Kisekka or Kisekka Market as we know it today. Dr Kisekka is said to have been a man of means who is rumored to have provided significant resources to Museveni’s rebel outfit, the National Resistance Army or NRA which would capture power in 1986. Kisekka was rewarded with the influential position of Prime Minister and later Vice President. Vice Presidents all over the world usually play the role similar to that of a bridesmaid — be near the bride but not do too much to outshine the bride. May be because of boredom, Dr Kisekka perhaps became the first Vice President in history to hold a weekly radio show. In the days before 1993, Uganda had only one radio station. So, every Tuesday evening, Kisekka did his radio show on Radio Uganda. He was boisterous, boastful, funny and engaging with a deep voice that was actually meant for radio despite his old age. He boasted about his farm in Temangalo near Kampala. He talked about the good life he lived. He reminded whoever cared to listen that he was “Omusawo Omutendeke” translated as a professional medical doctor. As a “Doctor Omutendeke”, he urged his audience to listen to the advice he was giving them if they wanted to live a similar good life like the one he was living. One of Kisekka’s pet subjects was on how Ugandans prepare for visitors. How they leave no stone unturned because visitors were expected at their homes or in their communities. On a tour somewhere in Uganda, Kisekka realized that the community had just worked on the road so that he could use it. They had filled the potholes, dug the trenches and had the road reserve slashed of any bushes days before his arrival. In his speech, which was played on Radio Uganda, Dr Kisekka deeply laughed at the community telling them in their faces that they were an unserious lot. He said they didn’t need to dig up the road for him because he was arriving in a monster vehicle as VP and most importantly, he was also wearing designer shoes. There was no way thorns would pierce his feet. He reminded them, that his car had been driven all the way to the platform where he was standing to give the speech. He then delivered the punch. “Unlike me, you and your children have no shoes. You have no vehicles so thorns will always be piercing you. What about ensuring that your community road is always well maintained even when you are not expecting me?” he said and then let out his signature laugh. On another time, he refused the gifts of goats and chickens the community was giving him. He told them his farm in Temangalo had lots of goats, cows and whatever food he wanted to eat. Yet when he looked at the people giving him the chickens and eggs, they looked like they lacked proteins and hadn’t eaten eggs or meat in a year. He laughed again, boisterously with a lot of pride. Kisekka must be turning in his grave that decades after his speeches and even death, his NRM-beloved is doing exactly what he was telling people not to do — preparing everything for visitors as they starve. Patching up potholes and lighting up expressway spurs just because visitors are coming. The visitors would tell a mature palm tree that was planted the other day. They would tell a road patched up for them. They would know that the lack of traffic jams is because roads are blocked and the citizens are told to use the dusty Nakawuka road to access Entebbe International Airport. Imagine if we had built the Nakawuka road without waiting for the visitors? Businesses would prosper in that area. Uganda Revenue Authority would collect more taxes. We would decongest Kampala of traffic jams. If we hadn’t waited for visitors to patch up potholes, we would have created a culture where roads are well maintained throughout the year. The visitors would then come and see a well-managed country and would wish to return or invest. We may create the impression for visitors from Entebbe to Munyonyo and some parts of the city centre but what if they venture out of their hotels and visit bars in Najjeera on their own? Won’t they see the messed up roads? What if they visit Kabalagala (which many will do) and then realize that not everything that glitters is gold? Will they still be impressed? As Kampala and Entebbe were put on a standstill so that Uganda hosts delegates attending the Non-Aligned Movement (NAM) and the G77 conferences, let us a create a culture that impresses the citizens and residents first. That is how countries and cities develop. Remember what Kisekka said more than 30 years ago. The writer is a communication and visibility consultant. djjuuko@gmail.com

February 5, 2024

Out to Lunch

#OutToLunch: There is more to learn from Joseph Yiga than just his mega country home

By Denis Jjuuko In the early evening of the second day of this year, a video started trending on various social media platforms in Uganda. A guest attending a house warming party had recorded the video while narrating what the amenities were in the house. He concentrated on the visitors’ toilets, guest house, flowers and the sheer size of the compound. Although he exaggerated the acreage of the land on which the house sits, the picture was clear for everyone. Photos eventually emerged as well. For the next few days, social media discussions were centered on the house. Its sheer size and architectural beauty. One person tweeted that at least Kampala’s billionaires were finally building something Hollywood-esque. Others compared it to a five-star hotel in Kigo. Both the hotel it was compared to and the mansion borrow from the Mediterranean architectural themes. A well-traveled friend who was among the guests at the house warming party told me that he hadn’t entered a house that big before and commended the owner’s taste. On social media, eventually everyone asked who the owner was. It turned out, the house on the shores of Lake Victoria in Kasanje Buwaya belonged to Kampala businessman and papal knight Joseph Yiga and his wife Regina. Many people had never heard of Joseph Yiga before and many actually confused him with a dealer in real estate with whom he shares both names. Yet Joseph Yiga is the founder of one of Uganda’s most known brands — Steel and Tube and before that, Hardware Deals. I would never blame them for not knowing him. I have been to events where Yiga has attended but he keeps a low profile. He will never arrive at an event where he would ask the protocol people whether they knew who he was. That is for wannabes who actually have nothing to their name or have just fallen into things the other day. Yiga didn’t become a captain of the industry the other day. He has been in the trenches of business for the better part of his life. Before he founded Hardware Deals, the precursor to Steel and Tube, Yiga had been involved in the cosmetics business among others. As Kampala expanded, he saw opportunities in the construction sector and eventually started his steel manufacturing empire. Steel and Tube is said to be among the top five steel manufacturing businesses in Uganda. That means he can afford the mansion in Kasanje that rivals some of the best five-star hotels in Kampala. But I don’t want to write about his mansion. We know he can afford it. But what do we learn from him? The story is in his move from a hardware stockist to a large manufacture of steel products. He was never contented with playing second fiddle to businessmen from Asia who came here and set up manufacturing businesses and controlled the market. Many Ugandan businesspeople travel to Asia, particularly China, for decades importing stuff and stocking them. Most of the stuff they import can easily be made here but they don’t look at business that way. Countries develop when nationals can control some of the sectors of the economy. If we concentrate on being traders of stuff we can make, we are always at the mercy of those who manufacture them. Manufacturers set the price of their products. They determine the quality and quantity you can get. They can even remove the business from you and start dealing with another trader who may be can deposit more money with them than you. There is nothing you can do about it. That way they determine how much money you can make and you will never make more than them. Many times, they use your money. Had Yiga remained a hardware dealer in Nakasero in the Kampala Central Business District, he would have been wealthy but not able to control any percentage of the steel market in Uganda and the region as he does today. He would probably have built a mega country home but not as luxurious as the one he built in Kasanje Buwaya. He would have employed many people but not the thousands that work in his factories today. If there is anything Ugandan businesspeople can learn from Joseph Yiga, it is the need to move from trading to manufacturing and of course other sectors like banking. We can’t be leaving this to only foreign entities. The writer is a communication and visibility consultant. djjuuko@gmail.com

February 5, 2024

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