Kampala

Out to Lunch

The industry of bolts and nuts and what small businesses can make on a car

By Denis Jjuuko In one of the dingy alleys of Nakasero at hitherto Kampala’s major hardware market area existed a very tiny shop that seemed to attract lots of customers. The customers, largely contractors would come with a piece of metal that they showed to the lady owner. The customers wanted the exact same part. Many times, the seller didn’t know where the part was. She was sure she had it but she didn’t know where to find it. However, she knew how to find it. This meant emptying her sacks or baskets on the ground floor and start going through hundreds of pieces of metal to find the part. As more customers came over, she would task the buyer to carefully look for what he was looking for as she attended to another customer. It was tedious but her customers never complained. They knew the modus operandi and most importantly they were sure they would find what they were looking for. The shop owner used to go to Dubai, Japan and such other places to source her wares. Most of them were old stuff, discarded from motor vehicles, towers, and machinery. Here people would use her wares as replacement parts in vehicles and even factories, construction and fixing whatever needed fixing. The materials she was selling aren’t unique at all. Simply, bolts and nuts. Yes, different sizes of bolts and nuts. As her business boomed and she became the reference point for bolts and nuts in Kampala, other people started similar shops in Shauri Yako and Kisekka markets. I don’t know whether her tiny shop still exists but there are many other shops today that sell bolts and nuts. They are usually in high demand as replacement parts for vehicles and factories, construction and for fixing lots of things. The funny thing is that the last time I checked, there was no factory making bolts and nuts in Uganda. I was once directed to one in Namanve industrial area. The warehouse was well decorated with all sorts of bolts and nuts and other materials that form the fastening industry. I realized the warehouse was a store and wholesale selling point. The owner was simply importing them from China and India. Though of course, my research may not have been thorough and was done several years ago. There could be guys making them today. I have googled several times how bolts and nuts are made and saw several videos from India and China. There was nothing sophisticated about making a bolt or nut. Largely, it involved an iron or steel bar that fed into a machine that sized it, created threads and the shape at the top. Nothing special to be honest. This story came to mind over the weekend when Kiira Motors announced that it had made eight electric buses from its temporary premises at Luweero Industries in the precinct of the UPDF barracks in Nakasongola. Like every time Kiira Motors makes such an announcement, the story that trends on social media is whether the parts were made in Uganda or not, followed by the argument that we cannot make things. But nobody manufactures a car in its entirety. It is small parts made by so many players that are put together to make a car. Same way a 5-star hotel makes a buffet. They get ingredients for the buffet from several suppliers who also get them from several farmers. It is called a value chain. Anyway, most motor vehicles have more than 30,000 parts. Buses, sometimes have as many as 70,000 parts. Many of them have to be fixed together using bolts and nuts. If our argument is that we can’t make a car, why then can’t we at least make bolts and nuts? It isn’t just bolts and nuts that we can make. There are many things that we can make on a vehicle that don’t require significant investment. Individuals asking what are we making on a vehicle can easily invest some little money in such areas — same amount they invest in a plot of land that remains idle and bringing no income in places like Kira (no pun intended). The beauty of car parts is that the majority can be used in other sectors. For example, we can make car seats but if you can make car seats, you can also make seats for technical benches at stadiums (Hoima stadium is coming up), dental clinic chairs, waiting room/reception chairs and basically any upholstering. We already have an industry here in Kisenyi where taxi seats are made. We simply need to deploy slightly better technologies. Fiber parts like face and rear. If you can make translucent sheets used for roofing shades and pergolas, you can make car fenders and bumpers. Brackets are used a lot to attach a range of car systems. All one needs is a bender and cutter to turn iron bars into such parts. Anyone making stainless steel balconies can make bus hand holds and cabin rails. Internal aluminum moldings should not be so difficult either. Cars are very sophisticated as a finished unit but many parts that make a car are not that sophisticated to make. And like I said earlier, most of these parts can be used in all sorts of industries and sectors. Instead of spending our bandwidth on the argument that we cannot make a car, what about, as small businesses, we started with those basic parts like bolts and nuts? The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch: What are you doing with the space above your house?

By Denis Jjuuko When I left university, my friends and I rented a three-bedroom house somewhere within a walkable distance of the Kampala central business district. Each of us had a bedroom but we shared the living room, kitchen and bathrooms. We equally shared the costs but also avoided stuff we couldn’t individually afford at the time. One TV set was, for example, enough for all of us. One of our cheeky friends named it Ujamaa house—after Julius Nyerere’s socialist model. I was thinking of a better way we can have ‘Ujamaa’ in Uganda today but at an individual level. As individuals, it is easier to do certain things than always waiting for government to organize us. There is increased pressure on land in Kampala and its surrounding areas due to population pressures and the concentration of meaningful economic activity within the radius of about 80km of Kampala. So many people are buying land further away from the city where it (land) is more affordable largely to build residential houses and even commercial structures. The nearer the land to Kampala city, the more expensive it becomes. Many people with land nearer Kampala struggle either to develop it or sell it. This is because, the tradition has been largely to buy land which is either empty without any structures or taking over the land and its structures. But these expensive areas are full of incomplete structures. It is very common to find somebody who built a house or commercial structure and failed to complete it. Others take years to complete which means tying up capital which would have been used in other ventures. Yet we now have the condominium law which allows multiple ownership of structures on the same piece of land. The most common application of the condominium law has been the construction of apartments where units are sold to different people. However, we can flip this even where we don’t have the resources to build structures with multiple floors and many apartments. Imagine if you bought a plot of land today anywhere in metropolitan Kampala or any major town where you live to build a residential house for your family. It may be a bungalow or even a storied house. But the area in which you are building is increasingly becoming expensive. So, what if you designed a house that can allow you to build for yourself but then sell the space above what you don’t need to somebody else? This would require constructing a storied building with the foundation strong enough to enable other people to build on top. This would have to be planned with the architect and the civil and structural engineers. You build the house you need and as the city expands and the area in which you live becomes more valuable, you sell to somebody else to build their house on top. This would be attractive to people who may not want to live far away from the city and don’t necessarily have the resources to buy an empty plot or a house from scratch. Imagine if you owned a building in Ntinda or Muyenga today that you can sell to somebody and still remain a part owner. There are people who live in expensive neighborhoods today yet without much money and at the same time don’t want to sell and relocate to Ziroobwe or Bujjuuko. This model would enable them have money to cater for their other needs or live their dreams without shifting to a ‘poorer’ neighborhood or living far away from the city, in an area that they may considered beneath their status. Many people can end up owning a high-rise building without each spending so much money to acquire land and all that is required. And each of the owners would have their condominium certificate of title. Friends or families can come and do this together. Each floor of the house built increases the value of the property yet lowering the cost of maintaining the building since such costs are shared by the owners or tenants. Owners of incomplete buildings would be able to release their equity from a single building and avoid the wastage of space for storied buildings like it is in Kampala today. Those who may have been struggling to complete their buildings would now be able to do so while spreading their risk. To be honest, this isn’t even such a novel idea. If you usually watch Asian movies, this model of living is common. Many families end up living on a same plot each with their unit within a single big building. Hotel chains do so as well where they sell rooms to different people and charge a management fee. Each time a hotel room or suite is booked, the owner makes money less taxes and service fee. As individuals, we can plan for this and commercialize the space that we aren’t occupying. The writer is a communication and visibility consultant. djjuuko@gmail.com

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