Jinja

Out to Lunch

#OutToLunch: Incentives could further switch on West Nile for investment

#OutToLunch: Incentives could further switch on West Nile for investment By Denis Jjuuko On my first visit to Arua in West Nile, many years ago, my colleagues and I decided to unwind by visiting a nightclub or something similar to it. We were young and free. We had made the long trip from Kampala, rested a bit and decided to indulge in the night, enjoy some Lingala and whatever a bustling border town has got to offer. I had seen a huge electricity generator station by the roadside, a few minutes to Arua town but hadn’t paid much attention to it. I had also not done much research about the city’s night life. It was one of those days you jump into a car, drive to a town, get some accommodation and you are ready to go. A journey to discover the unknown. Some people call it adventure. In the nightclub, I noticed something strange. As a self-confessed nocturnal at the time, I had been a ‘happening’ boy by some lousy standards. I had also worked in journalism and the entertainment sector had been part of my beat. At university, I had enjoyed the exuberance of youth through clubbing. Nightclubs, therefore, were not strange to me. In Arua, at that nightclub, everyone had a torch. If you are considered old in Uganda, you remember the silver metallic ones with a red button on the side. Those were for the sophisticated ones. Those who lacked means had plastic ones. The only revelers who didn’t have either a plastic or silver metallic torch, were my colleagues and I. The majority of the people pulling all dance strokes on Lingala music were partly ‘giving us the eye.’ Like in most places, you could tell that people realize you are a foreigner. You don’t understand the rules. I became more cautious and decided not to indulge much and be more of a casual observer, with one eye on the exit door. Sooner than later, I realized why everyone who knew Arua well had a torch. At the peak of people’s enjoyment, electricity was switched off. The entire town went dark and quieter than a cemetery! Again, if you are considered old in Uganda, loadshedding is not something new to you. Electricity was always shared. If you had power today, you didn’t have it tomorrow. Rationing. But loadshedding in most parts of Uganda at the time meant power was switched off in the early evening around 6.00pm and switched back on around 10.00pm. In Arua, power was being switched off after 10.00pm. Strange loadshedding. Once power went off, the nightclub didn’t have a generator powerful enough to enable the rotating multicolor disco lights to be switched on. The nightclub’s standby generator was only big enough to power the sound system. That is why the revelers had torches. They switched them on. Some pressed the red button on the switches which made the torches provide a blinkering light. Others tied them on their waists. As they pulled those rare dancing strokes that are synonymous with Congolese across the border, they provided a spectacular experience akin to that of customized dazzling disco lights. What a spectacle! The ingenuity of the West Nilers. I have made hundreds of trips to Arua since that night and definitely power had become a bit reliable. But it is only the other week that West Nile was switched to the national electricity grid. It is a remarkable achievement or a shame that it has taken this long depending on how you look at it. The region has unbelievable potential given its location at the borders of both the Democratic Republic of Congo (DRC) and South Sudan, some of Uganda’s biggest trading partners. Both countries are expansive and a big chunk of their populations rely on cities like Arua as the source of their goods and services. I learnt that some of those guys who were rivaling Congolese dancers in that nightclub were actually Congolese who cross the border to enjoy life. Anyway, both countries also suffer regular insecurity which means investors will always keep away apart from those exploiting the countries’ massive natural resources. But the investors could not set up businesses such as factories in Arua, to supply West Nile, DRC and South Sudan and beyond. They would rather set up in Kampala or Jinja where electricity was not such a big challenge. Yet if they set up in West Nile, they would be nearer to the market. Lack of electricity was always the challenge. Now that the problem is sorted, West Nile’s potential should now be fully exploited. West Nile is also very diverse with many different cultures, which can be a bedrock for non-animalized tourism. Even the alleged world’s smallest church is in West Nile! Nang Nang, perhaps the world’s tastiest fish is available in basketfuls. The River Nile cuts through the region, providing near perfect locations for riverside resorts and water sports. Land is still relatively affordable and fertile and some of the major towns are being connected by bituminous standard roads. Small planes can land in Arua. For those who love animals, Murchison National Park is partly in the region. Affordable trainable labour is in abundance. Electricity also means companies like Kiira Motors can now set up shop for electric buses. Or investors can think of electric vehicle chargers. An electric bus trip from Kampala to Arua would cut the cost by more than 50%. Major urban centres like Arua being border towns have populations with some bit of disposable income. But investors will need to be mobilized and incentivized so that they can set up shop. For those responsible for the country’s development, their work is now well cut out. Those selling torches, if they still existed, will have to pivot. The writer is a communication and visibility consultant. djjuuko@gmail.com

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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

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