News analysis
Health
Business
NRM Day: Testing NRM’s big the promises numbers bad?
Scientists struggle to find new drugs?
Uganda’s bank for cooperatives a reality?
Issue No. 505 Jan 26 - Feb 01, 2018
lebrating Ce
Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Years
Should government takeover UMEME job? Karuma, Isimba power raises new questions
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KAMPALA PARENTS’ SCHOOL ‘WE STRUGGLE FOR THE FUTURE’
performance. You made us proud! We wish you success in your future endeavours.
OUT OF 257 PUPILS, 197 (76.9%) ATTAINED 1ST DIVISION
BEST PERFORMING PUPILS
AINOMUGISHA STELLA (4.AGG)
BAGIIRE PAUL TYLER (4.AGG)
KAFUMBE SHAHAM IMRAN (4.AGG)
MUGISHA ANTHONY MUGUME JEREMIAH MUTYABA TWAHA NDYANABO RYAN (5.AGG) (5.AGG) (5.AGG) (5.AGG)
KARUHURA ALBERT (6.AGG)
KIGOZI BEVERLY (6.AGG)
MATOVU JOSHUA MWESIGWA (6.AGG)
MUTEBI RIYADH (6.AGG)
NYIRANZIZA ANGEL (5.AGG)
NALULE EMILY AKANKUNDA (6.AGG)
OCAYA NYEKO EMMANUEL (4.AGG)
AHURIRA MATTHEW (5.AGG)
OKETCH PETER SEAN (6.AGG)
ARINAITWE MARVIN D. EPUDU MATTHEW JORDAN (6.AGG) (6.AGG)
RWAKIBALE CALVIN ISAIAH (4.AGG)
KORUTARO JOSHUA (5.AGG)
SONGA JOEL MATTHEW (4.AGG)
KYANKYA JOSEPH (5.AGG)
SSERWADDA BENJAMIN ACEN KELLY INNOCENT (6.AGG) WILBER (6.AGG)
MPINDI HASHIM (5.AGG)
MUGASHA BEN Jr. (5.AGG)
AHABWEMBABAZIZE JOSEPH (6.AGG)
ANZOA PRUNA (6.AGG)
KALULE EUGENE (6.AGG)
AGGREGATE ANALYSIS AGGREGATES 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 PUPILS 06 10 13 19 34 30 35 28 23 21 10 12 06 04 01 01 04
DIVISION ANALYSIS TOTAL
257
DIVISION
NO. OF PUPILS PERCENTAGES
1 2
197 58
76.9% 22.6%
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INBOX
Issue No. 505 Jan 26 - Feb 01, 2018
The Week
The Last Word
Analysis
4|Judges conference focus on extending justice to the disadvantaged
Reconsidering governance in Africa: Why our obsession with copying and pasting western institutions causes more harm than good
14|NRM’s big numbers: Ruling party’s unrivalled growth scrutinized as it marks 32 years in power
4|Under age illicit alcohol consumption increasing, study finds 4|Kitata, Boda boda 2010 leader arrested
16|Auditor General lists weak government departments: Political will to do things is zero, says civil society
STRATEGY & EDITORIAL DIRECTOR: Andrew M. Mwenda MANAGING EDITOR: Joseph Were INVESTIGATIONS EDITOR: Haggai Matsiko BUSINESS EDITOR: Isaac Khisa PHOTOGRAPHER: Jimmy Siya
Business 21|Will Uganda’s bank for cooperatives be a reality? : Cooperative banks worldwide were financed by cooperatives societies 24|Failing access to agriculture funding
Arts & Culture 43|Big is big: Art Safari finally comes to Kampala
43|5 coolest gadgets for your ride in 2018
WRITERS:Ronald Musoke, Flavia Nassaka, Ian Katusiime, Agnes Nantaba, Agather Atuhaire, Julius Businge. DESIGN/LAYOUT: Sarah Ngororano, Harriet Jamwa.
PUBLISHER: Independent Publications Limited, Plot 82/84, Kanjokya Street, P. O. Box 3304, Kampala, Uganda Tel: +256-312-637-391/ 2/ 3/ 4 | Fax: +256-312-637-396 E-mail:
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Jan 26 - Feb 01, 2018
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Makerere University graduates jubilating during their 68th graduation ceremony on Jan. 18. Fourteen thousand eight five students graduated this year. INDEPENDENT/ JIMMY SIYA.
President Museveni poses for a photo with some of the prison commissioned offers after over 900 Prisons Officers comprising 706 Warders and 213 Wardresses were commissioned on Jan 18 at Luzira prisons. He warned the graduates against irresponsible lifestyles saying they must avoid anything that would put their lives in danger. On the right is the Commission General of Prisons, Johnson Byabashaija
“I thank God I did not become FDC president again because FDC is full of contradictions”Former FDC president Mugisha Muntu
“Boda Boda 2010 fought all attempts at regulating boda bodas in Kampala. Even when we tried to put up stages for boda bodas, they fought the ideas”Minister for Kampala Beti Kamya on Boda Boda 2010
French Ambassador Stéphanie Rivoal, (3L) back row with the German Ambassador to Uganda Albrecht Conze, (3R) pose with recipients of the Franco-German peace and reconciliation award at the 55th anniversary of the Franco-German friendship treaty on Jan 22. The awardees are offering free legal aid services to victims of land grabbing in Karamoja under the legal aid project of the Uganda Law society.
“It is time for our people to stand contesting for all political and leadership positions at all levels in the country” Kabaka Ronald Mutebi urging Baganda to join politics in bigger numbers
INDEPENDENT/JIMMY SIYA
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Schools likely to be closed by KCCA in February over declining standards
22,605
Leaders in government being probed by IGG over their wealth
243,567
Congolese refugees in Uganda after a surge in the last two months
Jan 26 - Feb 01, 2018
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week
Underage illicit alcohol consumption increasing, study finds
Judges focus on justice for the disadvantaged Judges on Jan.22 embarked on a week-long conference to brain storm on how to improve Uganda’s justice system. Held at Speke Resort Munyonyo, Paul Gadenya the registrar of courts said that the gist of the conference was to look at ways how justice can extended to disadvantaged Ugandans who cannot afford for legal fees. Held under the theme, an inclusive judiciary for sustainable development, Gadenya said before the conference that they would explore informal justice mechanisms in addition to exploring how they can streamline administration of cases to make courts accessible to all. This judges’ conference comes amidst mounting criticisms regarding the
independence of the judiciary and the fact that the entity is not self- accounting. Recently the lawyers umbrella – Uganda Law Society petitioned court over failure to pass the judiciary administration bill and government actions that impend the judiciary from attaining the self -accounting status. The lawyers maintained that government has continuously violated these provisions as the legislature and the executive have failed to take action or enact appropriate laws that would enable the arm of government to operate independently. He also expressed concern that the judiciary operates with a small budget that doesn’t allow it dispense justice in a timely manner.
Dial 4
50.8% of the 600 respondents in a study conducted by a Health Communication Organisation – Straight Talk Foundation Uganda agreed to have consumed illicit alcohol, 17% of which were under the age of 18 years. Underage consumption was higher among males at 25% than among females at 9%. The study dubbed, ‘licit Alcohol Consumption, a Community’s Perspective’ was conducted in four districts – Kampala, Kabale, Soroti and Gulu Speaking at a Science Café Organised by the Health Journalists Network in Uganda (HEJNU) on Jan.17, Richard Imakit a researcher said they found a substantial 75.5% of current drinkers are under 18 years of age whereby the
Director Striaght Talk Foundation said they wanted to understand facilitating factors and therefore found that illicit alcohol is cheap and can be easily got a thing that allows for consumption of enormous litres. She called for coming up with helpful strategies just like the country did earlier when handling the AIDs epidemic.
Cancer machine resumes after two years Patients requiring radiotherapy can now get treatment at the Uganda Cancer Institute after the machine that had broken down in 2016 was officially replaced on Jan.19. The new machine is set to handle 80 patients a day. Speaking at the commissioning of the new machine at the Institute headquarters in Mulago, Prime Minister Ruhakana Rugunda said the government had acquired the new equipment at 664,000 euros. Yukiya Amano the Director General, the International Atomic Energy Agency (IAEA) a global entity that installed the new machine said the right precautions had been taken and therefore Ugandans should be confident that they will be getting the right service. He said Ugandans should be proud
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Jan 26 - Feb 01, 2018
largest proportion of 42.9% consumes illicit alcohol composed of locally produced waragi – Kasese, Enguli and Lira-lira at 18.8% and Local brew – Malwa and Ajono at 24.1%. He said the findings show that the majority of underage consumers live with an alcohol consumer where 51.9% were mothers whereas 50.7% were fathers. Susan Ajok, the Executive
of getting the cobalt machine because there are 28 countries in Africa that don’t have the machine and therefore their people can’t get such treatment. However, when the only cobalt machine that had been procured 20 years ago broke down in 2016, the country was plunged into a crisis where some of those badly in need of radiation were referred to the AghaKhan hospital in Nairobi whereas some people who couldn’t travel succumbed to their various cancers. Now, Dr. Jackson Orem, the Institute’s Executive Director says in addition to the new machine, construction of new bunkers is taking place where other forms of radiation treatment like brachytherapy will be provided.
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Week
Kitata, Boda boda 2010 leader arrested
Ronald Kibuule
Minister Kibuule grilled over grabbing land in Buikwe Ronald Kibuule, the State Minister for water resources who recently came under limelight over brawl with bank guard and against parliamentary rules entering the house with a gun was once again in the news for allegedly grabbing up to 85 acres of land from locals at Kigaya Golomola village in Buikwe district. Kibuule who appeared before the Justice Catherine Bamugemereire chaired land commission of inquiry on Jan.17 was said to have given families living on the land up to January 20 to leave or face eviction. However denying issuing such a threat, Kibuule said he bought the land in question at Shs120million and compensated the over 20 families living there. When asked whether he is aware that the land in question belongs to Buganda kingdom, the
rather arrogant minister said he has no business with Buganda land board and doesn’t know what the Namasole (queen mother of the reigning Kabaka of Buganda tasked to manage Buganda land board as the restoration law used by government to return property of cultural institutions) means because she is not an elected leader something that angered one of the commissioners – Robert Ssebunya who asked him to be humble and respect the people of Mukono North who represents in parliament. However he committed that he will not evict anybody although already some victims have appeared before the commission accusing him of deploying security personnel who arrested, detained and tortured people that some had to flee the area in fear for their life.
In a Jan.20 operation, the Internal Security Organisation (ISO) and) Chieftaincy of Military Intelligence (CMI) arrested Abdul Kitata, patron of notorious militia group Bodaboda 2010 shortly after the police boss Kale Kayihura defended the group in parliament that it had helped him wipe out criminals from the city. Kitata whose office found in Wakaliga a Kampala surburb was raided and number plates, machetes, hammers and iron bars were recovered was arrested after members of his group had confessed to having been involved in a gruesome murder of the Case Clinic accountant whose body had been discovered beyond recognition. Up to
ten other groups members were arrested too some intercepted as they left Top radio offices in Bwaise where they had been hosted for a talk show. Boda boda 2010 though started as an organization for riders in 2010, they came to the limelight during the 2016 elections when they openly campaigned for the ruling NRM. Last year the group clashed with another Boda Boda riders’ faction in Wakaliga leaving many injured and others in police custody. Also last year, at the height of Togikwatako campaign against lifting of presidential age limits, the group attacked a busload of school children for wearing red colors – a color that was being used by those involved in the campaign.
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Jan 26 - Feb 01, 2018
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Week
Suspected Case Clinic accountant murderers arrested A car belonging to Late Francis Ekalungar, a Case Clinic account was recovered on Jan.21 during an operation conducted by the military police in Kabowa, a Kampala suburb. Ekalungar who went missing only for his body to be discovered burnt used to drive a Toyota premio which was discovered at one of the homes
searched with number plates changed. Three men – Mawa Muzamir, Kandi Muhindo and Fagil Muwendo found in possession of the car have now been arrested as investigations into the murder continue. The Joint Anti-Terrorism Task Force (JATT) that were in an operation to crack down the Boda Boda 2010
25 peace corps education volunteers sworn in The US Ambassador to Uganda Deborah Malac on Jan.18 presided over a swearing in ceremony for 25 new Peace Corp volunteers specializing in educational activities. The group of the US volunteers who will be in Uganda for two years will focus on promoting reading Deborah Malac and literacy. “By encouraging said Malac. children to read – According to a even just one child statement by the – our Volunteers are US mission, the helping to unlock volunteers have the enormous spent about three potential of months in the Uganda’s youth – country where potential I have no about four weeks doubt will drive this were spent with country forward in host families to the years to come”, learn local language
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Jan 26 - Feb 01, 2018
and culture and then they received technical schoolbased training at Shimoni Core Primary Teachers’ College and Kira Primary School. The latest cohort brings the number of Peace Corps Education Volunteers serving in Uganda to 59 and the total number of Peace Corps Volunteers in-country to 162. The sectors covered include public health, agribusiness, and primary education. More than 1,700 Peace Corps Volunteers have served in Ugandan since the program was established in the country in 1964.
criminal gang ,confirmed that the vehicle belonged to Ekalungar and its original number plate had been replaced with another one. Ekalungar disappeared earlier in the year when he had gone to deposit money in the bank. His body was only discovered after his employers filed a case of missing person with the police.
Parliament week marked, participants raise money for albinos Shs75million was collected on Jan.21 in a campaign kicked off by parliament as part of events to mark its annual parliament week celebrations. The money will be used to construct a medical center and a school for people living with albinism. Speaking shortly after the Charity Walk, Speaker Rebecca Kadaga urged the Ministry of Health to put creams that albinos use to protect themselves from the effects of the sun on the list of essential drugs. She was responding to a call made by Jude Sekyanzi, Executive Director Uganda Albinos Association who said such
necessities remain too expensive for some to afford. Sekyanzi who asked government to set up a special fund for albinos just like they have done for other special interest groups said people who fail to get such essentials as creams end up getting skin cancer. He also called upon UNEB to consider printing exams for people living with albinism in larger fonts for some have visual challenges too. However, parliament targets to raise Shs5billion for funding a medical center and school project. About 15,000 people live with albinism in Uganda.
Humour
Former FDC President Mugisha Muntu has launched his nationwide consultative meetings where he will discuss the people’s views with different categories of people.
The Opposition Forum for Democratic Change has challenged the Government and Parliament to investigate the relationship between the Inspector General of Police Kale Kayihura and a local motorcycle operator’s association, Boda Boda 2010.
On Jan. 22Former International football star George Weah was sworn in as Liberia’s new president.
Did you know? 15-year old schoolboy hacked CIA, FBI
A schoolboy hacker; Kane Gamble, between June 2015 to February 2016, impersonated CIA director, John Brennan, to gain access to top secret military reports and even take control of his wife’s iPad. The 15-year old, operating from his home in Leicestershire, UK, gained access to passwords, personal information, security details, contacts lists and sensitive documents about operations in Afghanistan and Iraq. Gamble, who founded the pro-Palestinian group ‘Crackas With Attitude’, taunted the security service on Twitter about his successes. Gamble’s other targets included former deputy director of the FBI Mark Giuliano, secretary of Homeland Security Jeh Johnson and James Clapper, Director of National Intelligence under Obama. Gamble, who is autistic, boasted about phoning the communications company Verizon and setting up call-forwarding to divert all Clappers calls to the Free Palestine movement. He also boasted about carrying out ‘the best breach ever’ after accessing an FBI database to get the names of 1,000 staff. He also misdirected police into launching a ‘swat’ attack on John Holdren, a science and technology adviser to President Barack Obama. The Department of Homeland Security spent 40,000 dollars to resolve the problem and suffered ‘substantial reputational damage’, the court heard. Gamble was arrested in February 2016. The judge described Gamble’s activity as ‘torture in the general sense - he got these people in control and played with them to make their lives difficult’. Gamble also used an anonymous Twitter profile to talk to journalists. He reportedly told a journalist: “It all started by me getting more and more annoyed at how corrupt and cold-blooded the US government are. So I decided to do something about it.” Jan 26 - Feb 01, 2018
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News analysis Launch of the Mutebile centre
Panic as China stops import of plastics
Health Why blood shortage hit hospitals
Issue No. 504 Jan 19 - 25, 2018
Business Banks rollout agent banking
lebratin g Ce
Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Years
Surprises in 2018/19 budget plan
Inbox Letters are welcome ! The Editor welcomes short and concise letters from our esteemed readers on topical issues. Please send them to: The Editor, The Independent Publications Ltd, P.O Box 3304, Plot 82/84 Kanjokya St, Kamwokya. Kampala,Uganda.
Email:
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Great read on intellectualism Refer to: “The poverty of Africa’s elites” (The Independent Jan.12). If you have not yet read it, read a book titled `Hive Mind: How Your Nation’s IQ Matters So Much More Than Your Own’. Nowa Lubega
Janet Museveni on moral deficiency Refer to: “Janet Museveni releases PLE results” (The independent Online). Mama Janet I have respect for you especially for your dignity and that of your children, which I credit to you too. However, I was a bit surprised by your reference to moral deficiency as if new to you. In my view it defines the Ugandan and African societies and is the single most significant impediment to peace and prosperity. Sort this and you will be on the road to Heaven on earth. Hope you get this message. Ruganzu Ndoli
Tourism buses boost
Refer to: “Uganda tourism sector gets buses boost” (The Independent Online Jan.09). While this may be an innovation in the tourism industry, I doubt its sustainability. The buses seem large and luxurious, whose full capacity utilisation and cost of maintenance can turn into a nightmare. Otherwise, except schools or International Conference attendance, how many Ugandans and/or international tourists have group sight-seeing? Anyone’s guess is as good as mine. But all the same good luck. Raymond Otika 8
Jan 26 - Feb 01, 2018
Finance Ministry makes right moves, but timing could be wrong
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Trump simply being honest Refer to: “African Union slams ‘hurtful, upsetting’ Trump remark” (The Independent Online Jan.12). Guys! Let’s be proactive about ourselves as countries, continent,
nations… what have you. Whatever ‘others’ might label us, the responsibility lies with us! U.S. President Donald Trump is simply honest; albeit rudely, about
what ‘others’ and not an insignificant part of us do think about us; isn’t it!? Why do we emigrate often ‘shamelessly’?! Tesfaye
Trump’s Africa sh**holes Refer to: “African Union slams ‘hurtful, upsetting’ Trump remark” (The Independent Online Jan.12) Instead of our rush to condemn U.S. President Donald Trump, I suggest we all take an honest “man in the mirror” look at ourselves. Many African countries are indeed “shitholes”. Take a really good look at our continent; is there, with the exception of Senegal, any really functional francophone African state? Let’s start: Burundi, DRC, CAR, Congo Brazzaville, Cameroon, Mali, Niger,
Togo etc… Let’s take a look at other states: Uganda, Eritrea, Somalia, South Sudan, Sudan, Malawi, Zambia, Zimbabwe – the list goes on. Most of our countries are completely dysfunctional (essential services like health care are largely non-existant, the state only serves the interest of the thugs in power and their families and hangers-on) – they can barely support themselves and their people without continuously begging for handouts – which by the way are also mismanaged, and we are governed by a seemingly incom-
petent and corrupt leadership. Maybe the ‘orange lunatic’ occupying the White House isn’t wrong. He is just saying what is on the minds of people all over the world but they are too afraid to voice that particular opinion. If indeed our countries weren’t “shitholes”, our people would not be facing the humiliation of slavery in Libya, they would not be drowning in the Mediterranean – while in a desperate bid to reach Europe. I can only hope that Trump’s description can spur our leadership in a direction geared to grow our countries for Africans. Other regions (specifically Malaysia, Singapore, Thailand, South Korea and now Vietnam) have done it. Why can’t we? Dan
No country should be called that! Refer to: “African Union slams ‘hurtful, upsetting’ Trump remark” (The Independent Online Jan.12). Different countries have different problems, many are trying in their little ways to make a difference, but things have not been easy sometimes because of reasons beyond their control especially like connivance from you know who. I didn’t think Libya
was a “shithole” before they destroyed it! I don’t think God created shithole countries. Congo was no a “shithole” country before it became a “property” of the king of Belgium! Poor Haiti had to pay millions in compensation to France for decades for becoming independent.Whatever problems it has, no country should be called that! It’s akin to insulting your
mother.This great country whose leader is a disgrace, resents being called the “evil empire”, may be the “dotard” should be reminded that his “shithole” mouth ought to be closed for repairs, enough is enough. Deposed former president of Zimbabwe, Robert Mugabe, used to tell them off, that’s why they “fixed” Zimbabwe. Joe
The Last Word
Opinion
Reconsidering governance in Africa By Andrew M. Mwenda
Why our obsession with copying and pasting western institutions causes more harm than good
I
f you follow debate on Africa anywhere in the world, everyone will tell you that the main problem with our countries is governance. Yet this claim is new, picked from the World Bank’s World Development Report of 1989. Now it has entered the lexicon of politics as a religion; the very reason we need to focus on it. In the 1960s and 70s, the main issue was that African countries are poor because of their integration into the world economy as producers of unprocessed raw materials. We African elites have learnt about the governance principles of the western world largely through books, media and in class. Often these sources give us the governance ideal, which, while reflecting an aspect of reality in the West, do not give the full practical application of the ideal. The actual practical politics of the West diverges quite significantly from the ideal. Let us also remember that the governance strategies of the West evolved organically out of their own experience – their political and social struggles. These struggles themselves were rooted in a particular culture and were nourished by nutrient norms, values, habits and shared mentalities. So the governance strategies, principles and institutions of the West reflect a particular historic experience that cannot be universalised. To now transplant them from their habitat and treat them as universal has two major problems. First being neophytes, we seek to transplant the ideal, not the actual practice. We are blind to or ignorant of the myriad accommodations and adjustments Western societies have to make daily for the ideal to work. Second, we superimpose this governance ideal on a society with entirely different social structures, history, culture, norms, values and shared mentalities. We then imagine such a transplant will work just fine. Just imagine we get the governance strategies, principles and institutions of Buganda kingdom in 1880 and take them and superimpose them on the people and society of United States of America today. Then Americans have to travel to Uganda to learn in Luganda about how to manage their own industrial society. How would they work? Karl Marx argued that every society is built on an economic base – the hard reality
of human beings who must organise their activities to feed, clothe and house themselves. That organisation will differ vastly from society to society and from epoch to epoch. It can be pastoral or built around hunting or grouped into handicraft units or structured into a complex industrial whole. For Marx, whatever form in which people solve their basic economic problem, society will require a “superstructure” of noneconomic activity and thought. It will need to be bound together by customs or laws, supervised by a clan or government and inspired by religion or philosophy. Marx argued that the superstructure cannot be selected randomly. It must reflect the foundation on which it is raised. For example, no hunting community would evolve or could use the legal framework of an industrial society; and similarly, no industrial community could use the conception of law, order and government of a primitive hunting village. If Western governance strategies, principles and institutions work well in the West, it is because they reflect the historic reality of the societies. If they are failing in our nations, it is not because the leaders are not committed. It simply means that these strategies, institutions and principles do not fit the context. We have peasant societies still living at subsistence level trying to run affairs of government using governance strategies, principles and institutions of an industrial society. And we complain that they are not working. They cannot work. For these borrowed governance strategies to work they need a lot of domestication. Every day, Africa leaders and elites are domesticating them. But we call such domestication dysfunction. Yet “dysfunction” is the way such copy and paste institutions work, not the way they fail. Our political struggles are always over whether we are running the systems as described in books. Most of our political and constitutional struggles are over how “correctly” we are applying the ideal. Consequently we have spent over 50 years changing leaders for not upholding these governance ideals without ever fundamentally changing the quality of governance itself. President Yoweri Museveni who came to power pontificating how the problem of Africa is leaders staying too long in power is trapped in power. He has been in it for
32 years and doesn’t seem to have a plan to leave. Now he has to find new explanations for his original statements. His critics consider him power hungry. That is only partly true. Critically, Museveni finds himself also a hostage of that power. To avoid being misunderstood, let me be clear: our problems are largely local. Even the demands to solve them are largely locally generated. This is not to deny the external pressures and influences which come through NGOs, donor pressure, ideological capture etc. That is why I have used the word largely. Yet in spite of the local origins of our problems, the problem begins when it comes to designing any framework through which we can solve them. We don’t examine our specific circumstances. Instead we retreat to a theory in a textbook published at oxford or Harvard, itself developed out of the experience of Britain or USA. One of the factors behind our many frustrations and failures is this mismatch between demands and solutions. Today, Rwanda could be the most successful country in Africa in terms of the functioning of public institutions. The leadership of Rwanda is also deeply modernist. But in spite of its modernist ambitions, it has tapped deeply into its culture, norms, values and traditions to design her governance architecture. This could also have been facilitated by two things. First a shared culture and history means there is something to appeal to. Uganda and most Africans countries don’t have such a shared history and traditions given our ethnic heterogeneity. It becomes difficult to mould common and shared values among so many nationalities. Second, the 1994 genocide offered Rwanda an opportunity for a fresh and clean start. The destruction it wrought was so deep and comprehensive that it practically obliterated old forms of social control, and left society too weak to resist reform. The group that captured state power was tightknit and strong and could therefore mount relatively unified action without generating significant secondary contestations from other societal forces. The circumstances that have created Rwanda’s success are rare to find and difficult to recreate.
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cover story
Should government takeover UMEME job? Karuma, Isimba power raises new questions
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Jan 26 - Feb 01, 2018
cover story
Inside the 600MW Karuma power dam, which is expected to be commissioned this December
O
By Haggai Matsiko
n the face of it, Uganda’s sole national electricity distributor, Umeme Ltd, has a stronghold on the sector. It has seven more years on its concession, has recently posted stellar financial and operational performance, and – with workers’ pension fund NSSF as the majority shareholder – is largely a company with conc Ugandan flavors. So why has the renewal of its concession become a hot fighting topic in the corridors of its head office in Kampala, Ministry of Finance and State House? Apparently, after years of focusing on increasing electricity generation capacity, the government is now desperately looking at how to transmit and distribute the power expected from the new 600 MW Karuma and the 183 MW Isimba. The two dams are expected to be commissioned in December and August respectively. And the new power must find where to go profitably or else the projects risk becoming white elephants. An official at the Finance Ministry intimated to The Independent that the plans for distribution of the new power are
already behind schedule. Although the urgent need to find means of transmission and distribution of the new power is clear, the choice of who will implement it is less clear. Umeme wants the deal because it would mean a doubling of its business. In fact, Umeme has over the years invested $500 million to show readiness for this moment. It has also already carried out studies which indicate that it needs to invest between $1.4billion and 2 $ billion. But for it to get the new deal, it says, its concession must be extended from expiring in 2025 as per the 2005 concession. And its arguments make sense – from a purely business perspective. A sector insider told The Independent that for every dollar spent on generating a unit of power, another dollar is required to transmit and distribute it. Government estimates that some $3 billion is required to transmit and distribute the new power being generated. While transmission requires 30 percent of this, distribution requires a whopping 70 percent. The power distributor says, if the billions of dollars it needs to raise and invest into the network to distribute the new power are to be recovered within the remaining seven years, the lenders will be very
expensive. The more practical way would be for it to raise funds to be recovered over 15 years. However, even this has a catch no lender would be ready to lend Umeme money to be recovered over 15 years if it has only a seven year concession. It must table a 15 year concession, at least. Luckily for Umeme, officials at Ministry of Finance appear to agree with its argument. But they also have strict instructions from President Yoweri Museveni—to ensure that any new deals result in cuts in the cost of power to consumers; especially industrialists. That is where the overseers of the Umeme concession, the Uganda Electricity Distribution Company Ltd (UEDCL) come in with what they say is a proposal that could easily guarantee the lower tariffs Museveni wants. Instead of Umeme, UEDCL says, the government should invest in the distribution network. Clearly, judging by correspondence coming out of UEDCL which leased Umeme the concession, it appears not everyone is impressed. UEDCL’s managing director, Joseph Katera, last December wrote to Secretary to the Treasury, Keith Muhakanizi laying out options for financing the distribution network. Jan 26 - Feb 01, 2018
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cover story In summary, Katera noted that it was more affordable for government to invest in the network than for Umeme to do the same. UEDCL appears to have got inspiration from generator UEGCL, which wrestled control of the construction of Karuma and Isimba and is angling to wrestle the control of Nalubale and Kiira dams from Eskom and become the dominant power generator. Already, UEGCL is pushing for a takeit-all deal on Karuma and Isimba power, akin to what that government awarded the proprietors of the 250 MW Bujagali power in order to be in position to make them profitable ventures. Under this arrangement, the government would pay for all the generation capacity of the dams. This means all the 250 MW from Bujagali, plus Karuma and Isimba 783 MWs. But UEDCL might not be as lucky as UEGCL because officials at Finance, it appears, are not overly enthusiastic about the proposal that involves government raising more money – through borrowing. They are more inclined to support the option in which Umeme invests its own money and carries on the status quo. Finance officials point out that these dams have been constructed using borrowed money—over $2billion from China’s Exim Bank, which needs to be paid back before more debt is pumped into the sector. That is why focus is more on ensuring government or specifically, UEGCL, pays back by being able to sell the power. For that to happen, the distribution network needs to be overhauled but not by accumulating more debt, officials say. As the jostling continues, insiders say Museveni has added his voice to these discussions – in support of Umeme. In mid-December at a meeting with investors and government officials, Museveni reportedly urged authorities involved to fast-track the renewal of Umeme’s concession. Despite Museveni’s green light, however, Umeme must wait until negotiations are concluded amongst the distributor and officials at the Energy Ministry, the UEDCL, Electricity Regulatory Authority and Finance Ministry. At the heart of these negotiations are the two sticking issues—how to raise some $ 3 billion required for investment in distribution and how to review terms of major players in the power sector including Umeme in order to bring down the costs of power. Even as these discussions go on, insiders say, Umeme appears to have an upper hand. For one, it already operates the concession, is increasingly seen as 12
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Keith Muhakanizi
Umeme MD Selestino Babungi a Ugandan company—the NSSF is the majority shareholder with 23 percent shares. But mostly, the company is seen as the government’s best bet as far as raising billions of dollars required to be invested into the distribution network, badly needed ahead of the commissioning of new power plants that are expected to more than double Uganda’s generation capacity.
Impressive numbers
At the moment, the country’s electricity installed capacity stands at about 850MW, with Bujagali Energy Limited alone generating 250MW and the rest by Kiira, Nalubale and other small power stations. An additional 718 MWs stands to bring the total to 1468 MWs.
Umeme projects that in 2018, the demand will be 877MW and will have hit 1, 364MW by 2021. On its part, government projects that new demand from projects like the Standard Gauge Railway, Namanve Industrial Park, the mining sector among others, could come up to 1, 630MW. This would be in addition to existing demand, which is easily about 2, 500MW. Although some remain skeptical about the numbers, insiders say, jostling for the distribution deal shows how lucrative the sector is becoming. Umeme today also appears more confident and is fronting its performance as it garners for a renewal. As of last year, the company had increased connections to 1, 064,547, reduced energy losses to 17.5 per cent and increased collections to 99.9 per cent. The same year, Umeme’s revenue grew by 6.9 percent to Ushs 704.4 billion, driven by a 6.7% increase in units sold (GWh) and price adjustments. To make that money, the entity sold GWh (GigaWatthour) 1,630. If this doubled given the new supply and demand projections, the utility would be looking at over Ushs. 1.4 trillion a year. The only huddle for Umeme appears to be Museveni’s determination to reduce the cost of electricity for consumers. Museveni already has been firmly pushing for cuts from Umeme on Bujagali power and is unlikely to be swayed. He has directed officials at Finance to negotiate with lenders of Bujagali investors to extend the loan repayment period and a tax waiver as a measure to bring down the cost of electricity. Museveni, according to sources, wants the US$900 million loan facility, which was to be paid by 2023, to be extended by 15 years. He has also offered a tax waiver over the same period if the tariffs come down. On Umeme’s part, President Museveni and his technocrats at Finance want Umeme to cut Return on Investment (ROI) from 20 to 12 percent. Umeme has been pushing to keep it at least 15 percent, insiders say. They believe the two parties might settle for a middle point. Those against the 20 percent ROI say it was premised on the risk profile of the country in 2005, which has since changed. “We are saying that Uganda is less riskier,” an official at Finance told The Independent. Indeed, in 2005, the situation was very different. At the time, when government decided to unbundle Uganda Electricity Board (UEB) into three separate entities to manage electricity generation, transmission and distribution, it hired an international company called Fieldstone Private Capital Group Limited to help handle the matter. Two years later, government put out a tender for generation and distribution
cover story
The 183MW Isimba power dam under construction concessions. Five companies expressed interest and came to Uganda to do a due diligence on the sector. After studying the obtaining circumstances, all of them pulled out without submitting a bid. Part of the problem was that Uganda’s electricity tariff was being deliberately kept low by government subsidies and had remained unchanged from 1993 to 2002. It was far below the actual cost of generating, transmitting, and distributing electricity. Besides rampant power thefts, defaulters had also shot nontechnical losses through the roof. The situation was compounded by the fact that UEB had spent decades without properly investing in improving the distribution network, which led to high technical losses. The Commonwealth Development Corporation (CDC), which would later acquire the distribution concession, raised these issues noting that if they were addressed, they could bid. The negotiations between government on one hand and CDC and Eskom, which later took up the generation concession, on the other, lasted three years. Government promised to protect the investor from regulatory and political risks and the concession was designed by escalating the penalties government would pay in case of a breach. CDC and Eskom feared that if anyone attempted to increase the tariff, especially at a steep rate, it would cause thefts, defaults and illegal connections. The concession made it clear the tariff would not raise more than 10% in any
Umeme’s revenue grew by 6.9 percent to Ushs 704.4 billion, driven by a 6.7% increase in units sold (GWh) and price adjustments given year and not more than 20% in any three consecutive years. But even after government had agreed to these demands, Umeme was reluctant to join and asked for an 18 months concession as a trial run to see whether government would honor its word. They agreed to invest a nonrefundable $5m in these 18 months. Five months to the end of that period, in March 2005, power supply declined by 50 percent due to low water levels in Lake Victoria. This forced government to bring in thermal generators, which escalated the cost of electricity and increased the cost of subsidies. Amidst these financially crippling circumstances, in less than two years, government increased the tariff by 98 percent contrary to the concession
agreement. Umeme threatened to terminate the concession, triggering negotiations. Umeme argued that such a sudden hike in the tariff was going to increase illegal connections and defaults, making it difficult for the company to reduce nontechnical losses. Government was forced to suspend the loss reduction targets to keep Umeme involved. It is only after electricity supply constraints were eased in 2009 that ERA began to set collection and loss reduction targets. In 2009, losses fell from 35 percent to 30 percent and in 2010 they fell to 28 percent. Under the concession agreement, Umeme was supposed to have reduced electricity losses from 38 percent to 28 percent in the first seven years of the contract. By 2011, they had reduced them to 24 percent. They were supposed to have invested US$65m in the first seven years; they had invested $130m. They were supposed to make 60,000 new connections in the first seven years; they had made 220,000 connections. They were supposed to increase collection of revenue from 75 percent to 95 percent; they were collecting 98 percent of total electricity sold as per 2013. Despite all this, a parliamentary committee investigated the power sector and recommended that Umeme’s concession be suspended. As a result of this turbulent history, Umeme, has learnt to wear protective gear when dealing with electricity concession issues. Jan 26 - Feb 01, 2018
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news analysis
NRM women leaders at a conference in Wakiso district in January 2017. INDEPENDENT/JIMMY SIYA
NRM’s big numbers
Ruling party’s unrivalled growth scrutinized as it marks 32 years in power By Ian Katusiime
I
n 2006, after the first election since the country adopted the multiparty system of government in 2005, the ruling National Resistance Movement (NRM) had 205 MPs, after the 2011 elections that shot to 263 and after the latest 2016 polls, that number hit 294. By contrast, the number of MPs from the biggest opposition party, the Forum for Democratic Change (FDC) has remained almost static. After the 2006 election, the party had 37 MPs, after 2011 it had 34 legislators, and after 2016 it has 36 MPs. The small parties have shrunk even farther. Only the Independents; MPs without party affiliation, have grown to 66 – most of whom are sympathetic to and vote with the ruling party. In the last ten years, the government created a number of new districts, increasing the number of constituencies at parliament, LC5, and LC3 levels. And the NRM dominated most of the elective positions. As a result of this dominance, the NRM celebrates 32 years since it captured power on January 26, 1986. A debate is raging about whether the party has grown too big to be good for Uganda. Richard Todwong, the Deputy Secretary General of NRM, is not among those wishing the party was smaller and opposition a little bigger to create a semblance of democratic competition. He says the party’s big numbers are proof of NRM’s invincibility 14
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and is happy that the growing trend is unlikely to be reversed soon. ”This country has 40 million people of whom 16.5 million are registered voters. Of those 16 million, 13 million are NRM voters. So we have three quarters of the national register,” Todwong brags. He adds, “We have flag bearers in all positions and we are just waiting for the LC 1 elections date to be clarified and we field our candidates.” Todwong says 75% of the LC members at LC 3 and LC5 level are NRM in addition to the 13million voters who he says are NRM supporters on the national register, and he also makes mention of the party’s vast majority in parliament. “Let us just look at the recent by election in Ruhaama county (Ntungamo district), the opposition did not field a single candidate, so an NRM candidate was running against an NRM leaning independent in the race,” Todwong told The Independent. During the 2016 general elections, NRM had 289 candidates in the available 290 constituencies while FDC managed only 201. At the district level, NRM fielded candidates for all the 112 districts for the woman MP position while FDC had 61 candidates. Of the 66 Independent MPs, 44 are allied to the NRM while only 2 have an association with FDC. President Museveni has also not rested on his laurels when it comes to boosting NRM’s strength. He hits the stump regularly for NRM candidates in by-elections including those
vying for the district chairpersonship. But has NRM’s majority helped the party to improve governance?
NRM caucus overshadows parliament
Thanks to numbers, the NRM caucus has now been turned into a de facto parliament. On a number of occasions, the NRM caucus sitting at either State House Entebbe or at the National Leadership Institute (NALI) in Kyankwanzi district passes resolutions that in turn are passed by parliament. For instance, NRM selected its six candidates for East African Legislative Assembly (EALA) which is based in Arusha at a caucus gathering at State House Entebbe. The proposal extending the parliamentary term from five to seven years was adopted at an NRM caucus meeting. Other controversial amendments have been passed after the NRM invoked its strength. In December 2012, NRM used its majority to pass an oil law with a contentious clause that empowered the line minister to grant and revoke licences, negotiate and endorse petroleum agreements. The law was passed despite criticism that it concentrates so much executive power in the minister, making the individual susceptible to bribery considering the amount of finances involved in oil transactions. Dr. Livingstone Sewanyana, the Executive Director Foundation for Human Rights Initiative (FHRI) and member of the Uganda Governance Monitoring Platform (UGMP), an entity that monitors the coun-
news analysis
NRM numbers
Composition of Parliament 2011 9%
11.5% 24.3% 64.2%
2016
20.8% 70.2%
15.4%
6.2%
2006
8.45% 70%
NRM LC3 and LC5 members
289
NRM MP candidates who contested in the 290 constituencies in the 2016 polls
13m
NRM registered voters
NRM
NRM
NRM
FDC
FDC
INDEPENDENT
OTHER
OTHER
OTHER
try’s governance trends describes a situation akin to a tyranny of numbers. “The NRM majority in parliament has adversely affected governance and has been used to the detriment on public policy. The majoritarian principle as advocated for in a democracy has been misunderstood to mean that they can pass anything even when it is unpopular yet in a democracy promoting the will of the people is key.” He cites the Public Order Management Act (POMA), the age limit amendment and the NGO Act as some of the laws that have been passed just because NRM enjoys a majority and adds that the ruling party is in a lame duck position. “Now that the NRM has reached a point where they have nothing much to offer, the NRM caucus instead of working to promote wellbeing and good governance, their sole preoccupation now is how the regime survives longer in power.” The NRM is marking its 32nd anniversary on the back of a major legislative achievement- amending the constitution to enable its founder and longtime leader, Yoweri Kaguta Museveni, run for president for as long as he lives. The amendment was considered a gift to Museveni who signed it on Dec. 27, a week after its passing. The party won a hard fought campaign last year over the amendment as some NRM MPs even faced humiliation as their constituents warned them publicly against voting for the amendment. Critics and those in the opposition say NRM has regressed and turned on many of its founding principles but some of its members hail this as a mark of the party’s popularity. Francis Babu, a former NRM MP for Kampala Central, is irked when people say NRM has used its big numbers to pass oppressive laws, specifically the POMA and the recent constitutional amendment on the
75%
FDC
presidential age limit. “That is a cheap shot,” he says. POMA requires anyone willing to hold a public assembly to notify the Inspector General of Police or an authorised officer three days before the event. The law was heavily criticised by activists and those in opposition. Babu says it was inevitable for a law like POMA to pass due to the trend opposition politics had taken in recent years. “These people would go and hold rallies in the middle of Luwuum Street and people’s property would be looted. But anyway every country has a way it manages its public spaces whether you go to the UK or South Africa, you cannot just go causing insecurity and you expect a government to look on.” Babu says, however, to assess the NRM’s legislative record, all Bills passed in parliament need to be considered. “How many Bills have been passed?” he asks, “And how many of those have been good for the progress of the country?” He says progressive Bills have been passed over the years in agriculture, liberalisation of the market and economy and other sectors. The 9th parliament (20112016), which passed the POMA, also passed another 90 Bills. “You can’t just pick out the POMA because you do not like it,” Babu says. But Mwambutsya Ndebesa who teaches political history at Makerere University, says NRM‘s majority is a result of ‘manufactured numbers’ which are bought for political expediency and that this has added to commercialization of politics and helped Museveni strengthen his grip on power. “Even with the numbers, the fact is Museveni and his NRM MPs are now very unpopular. Because they can’t do anything about it, that’s why you see Ugandans are now resigned and don’t care what happens because there is nothing much they can
change as long as Museveni controls this vital group,” he says. “Democracy is a good thing but this majority thing has shown that it can actually have a bad taste. Now the opposition has no purpose in our parliament. They can never pass anything however good the issue is.” He says NRM has used its numbers to subvert democracy and breed impunity. He says the voice of the people is no longer listened to as government knows that what it wants will easily sail through parliament even when it is unpopular among the public.
Rebel MPs
The most recent example of the antidemocratic tendencies within NRM, according to critics, are the attempts by the NRM secretariat to take disciplinary action against the 27 NRM MPs who refused to toe the party line by voting for the presidential age limit to stay. With its big numbers, NRM attempts to beat dissenters against party position into line. Days before the age limit amendment, President Museveni said he would consider MPs against the amendment as those who are opposed to him. Shortly after, he criticised the secretariat for failing to take action against those who rebelled against the amendment. Earlier in 2013, the party expelled four MPs and suspended one whom it deemed indisciplined; Theodore Sekikubo, Mohammed Nsereko, Wilfred Niwagaba, Barnabas Tinkasiimire and Vincent Kyamadidi who was suspended. Museveni felt personal about it, another sign that he and the party that has ruled Uganda for 32 years, does not take its grip on power lightly. Whether the party can command the big numbers without Museveni is another question. Jan 26 - Feb 01, 2018
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news analysis
Testing NRM’s
promises After 32 years in power, has party lost its ideology? By Flavia Nassaka
Museveni during a campaign tour to Bugisu. Critics say the NRM ideology has been watered down.
E
very politician makes great promises to win and retain power and President Yoweri Museveni has mastered that. Every year during the National Liberation Day celebrations, he revises old promises and makes new ones. While the slew of figures of kilometers of new tarmac roads, growth in GDP figures, extension of electricity generation and more excite many, some analysts are more interested in the ideological direction of Museveni and the ruling NRM party. And NRM Day, which marks the day in 1986 when Museveni, then a rebel army leader of the National Resistance Army (NRA) became President of Uganda when his forces captured power and declared a government in the capital Kampala even as they continued fighting in the rest of the country, is a perfect moment. The euphoria of that day has since normalised into a daily grind to cope with escalating costs of living and social services; especially education and health, battles over resources; especially land, corruption, and increasing insecurity and repression of political dissent. The political opposition has sought to capitalise on the anger, but Museveni and his party have trounced them – in election after election, the opposition says are rigged. Anti-Museveni campaigners often reference Museveni’s inaugural speech on January 26, 1986 at the steps of parliament after being sworn-in. He promised a “fundamental change” in the politics of Uganda built on “a clear-headed movement with clear objectives”. He said the first point of the NRM programme; the restoration of democracy would be built on elected Resistance Com16
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mittees at village, muluka, gombolola, and district level for peoples’ voices to be heard. The second point was security of person and property, and the third was unity of country and end of religious and tribal divisions. Finally, he promised East African cooperation in economic matters. Since then, the President has been making similar speeches explaining the NRM ideology. The most significant was one he gave on July 26, 2016 to a joint meeting of the NRM central executive committee, cabinet, and permanent secretaries at the National Leadership Institute (NALI) in Kyankwazi titled “Re-focusing on the National Resistance Movement (NRM) Ideological Orientation”. In it, Museveni reiterated the original “NRM 10 Point Programme” of restoration of democracy, restoration of Security, consolidation of national unity and elimination of all forms of sectarianism, and defending and consolidating national independence. Point number five was building an independent, integrated and self-sustaining national economy, sixth restoration and improvement of social services and rehabilitation of war ravaged areas, seventh elimination of corruption and the misuse of power, and eighth was redressing errors that have resulted in the dislocation of some sections of the population. Point nine was cooperation with other African countries, and ten was following an economic strategy of a mixed economy. The President, however, based the speech on what have become the “Four NRM Principles”, namely: patriotism (anti-sectarianism and anti-gender-chauvinism), pan-Africanism, socio-economic transformation, and democracy. He said Ugandans have internalised, generally speaking, all principles of the NRM except socio-economic transforma-
tion. He said this is still problematic. He described it as the evolution of society from lower forms of social organisations to higher forms or middle-class and skilled working class societies. He said enabling Uganda to become a Middle Income status country by 2020 and a First World country in the next 30 years if not less “is now the single most important task of the NRM”.
Museveni has diverted
But in the run up to the NRM Day celebrations this year, Livingstone Sewanyana, the executive director of the Foundation for Human Rights Initiative (FHRI), says the NRM has diverted from their own set indicators in the 10-point programme, including the prosperity for all project, and delivering Uganda to the middle income status by 2020. “Now they are concentrating on how the party and Museveni survive longer in power,” he says. Sewanyana, who is also a member of the Uganda Governance Monitoring Platform, says the NRM is not willing to discuss any post-Museveni agenda. He says the issues Museveni noted while coming to power in 1986, including ideological disorientation, a weak state, suppression of the private sector, under developed infrastructure, underdeveloped social services, and an attack on democracy, are once again increasingly defining the country. “With his long stay he is even undoing the promises he had fulfilled,” Sewanyana says. He cites the concept of popular democracy, where Museveni came in promising more inclusive politics and upholding the will of the people and yet he now appears determined to oversee attacks on democracy. “What pre-occupies them now is how
news analysis
NRM party in panic?
the regime survives. After removing age limits from the constitution, cabinet has now passed a resolution for a referendum so that the presidential term can be increased to seven years,” he says. Even senior NRM party cadre, Francis Babu, who is a former minister and MP, told The Independent that now is a good time to reflect on how the NRM and Museveni’s ideological positions have evolved over the last 32 years. He says NRM is declining in popularity because of what he calls “a lot of unfortunate changes” – including Museveni’s move to recruit people from the opposition into senior government positions. “NRM people now just sing the ideology, there is no practice. People have lost confidence in us, they are shattered. We are not serious,” he told The Independent in an interview. “We need to review the system. Otherwise what constitutes NRM ideology today is something hazy. It needs to be resuscitated.” Babu reminisced about his time as Resistance Council (RC) chairman of Nakasero Village in Kampala in 1988. He described how the newly elected LCs registered all people on the village, resolved their grievances, provided security and served as the platforms of the party ideology. “Those days if you wanted to know anything about the village, you could ask the secretary, or the chairman. Right from the grassroots, there was an ideological foundation. Now they killed it and brought Mayumba Kumi championed by crime preventers”. The Resistance Council, which later became the Local Council (LC) was the foundation of the NRM and it helped identify
leaders. Through the Councils, people were elected at each level right from the villages and it was not on partisan grounds. “The party had a good ideology when they had just captured power,” he said, “The spirit we had at the time has been killed both through legal and other means.” The Makerere University Kampala political historian, Mwambutsya Ndebesa, says by the government not conducting according to him the biggest political event of electing local council representatives for more than 15 years means NRM has scored a zero on popular democracy. He said this is an important office as it’s where popular justice is delivered. “The NRM has failed on upholding democracy, a promise they campaigned on while ascending to power,” he says. Regarding representative, Mwambutsya says the elections; even at the parliamentary and presidential level, have become a ritual held under controversy and marred by rigging. “In his own party, Museveni has failed anybody who tries to stand against him. He looks at himself as the only one capable of leading this country,” Mwambutsya says. As an example, he points at the way Museveni’s former confidant and NRM party secretary General and Prime Minister Amama Mbabazi was kicked out when he expressed interests in running as a party flag bearer in the 2016 general elections. As a result, Mwambutsya says, whoever comes up is either despised as a joker or mistreated. He cites a recent move by Workers’ MP Sam Lyomoki who announced that he would stand for presidency, and the news was portrayed as some kind of comedy.
Lyomoki on Jan. 05 said he and others had agreed that this is the time for new Movement leaders to stand and offer credible leadership for the country. He also proposed to Parliament to discuss how to handle the post-Museveni era, taking into consideration possible immunities and emoluments Museveni could be offered once he was out of power. The increasing repression of dissenting voices, according to Mwambutsya, is a sign of panic not strength, within the ruling clique. He says the NRM Day this year “will be remembered as one that happened when the party was in panic mode after passing largely unpopular laws so they can consolidate themselves in power”. “Museveni is panicking and aware that his party has lost popularity; that’s why he has chosen to fuse the army in all key installations. It happens at the time when they have a lot of explanations to make. Though the economy is growing, many Ugandans are still vulnerable,” he says. He says the party has not addressed the fundamentals. “They came to fight for freedom but they are now fighting freedom. People cannot assemble any more. There is no Ugandan bank to talk about,” he says. According to him, 2017 was particularly challenging for the NRM when members publically showed they were against the position of the party. He speaks of the 27 members who voted no to lifting of presidential age limits and have now been summoned by the party to explain why they took that stance. Mwambutsya warns that people’s resentment is mounting as the NRM continue making promises they cannot keep, starting with the Prosperity-for-all pledge which promised to improve incomes of ordinary people through the number of interventions but poverty has only been on an increase. In fact, results of the most recent survey done by Uganda Bureau of Statistics on Jan.17 show the proportion of poor people increased to 21.4% in 2016/2017 from 19.7% in 2012/13. However, party ideologues say their critics are mistaken. “The party ideology hasn’t been watered down,” Richard Todwong, the NRM Deputy Secretary General, told The Independent, “it is only that the 10 Point Programme that they came with has been modified.” Then, like Museveni, he reeled off the four core pillars; Pan – Africanism, patriotism, social economic transformation and democracy. Todwong is one of the new NRM leaders that the old-guard like Babu spoke about. It’s not easy to see, however, whether he is merely singing the party ideology or his heart is in it. Jan 26 - Feb 01, 2018
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news analysis
Auditor General lists weak government departments Political will to do things is zero, says civil society By Julius Businge
T
he 2017 Auditor General’s (AG) report is out. And its findings and recommendations for the year ended June 30, 2017 expose weaknesses in many government departments. Uganda Revenue Authority, the National Agricultural Advisory Services (NAADS), Ministry of Finance, Ministry of Public Service, Ministry of Lands, public universities, the Uganda Electricity Generation Company Ltd (UEGCL), district local governments and more are mentioned. The weaknesses noted include corruption, poor planning, and poor budget performance, failure to hit targets, unapproved expenditure, and more. The cases listed have caused problems like low absorption capacity of funds, poor accountability, poor corporate governance, low tax remittances, increasing domestic arrears, offering wrong investment incentives, staff shortage in government and more. Following the release of the report, the Parliamentary Accounts Committee (PAC) plans to start conducting hearings on the AG report next month. Coming at a time when the budget making cycle has just turned a mid-cycle corner, there are also questions about whether the AG’s recommendations on the listed weak government departments can be fixed in the 2018/19 budget. Part of the fear is that similar issues keep recurring annually in the AG reports and are not addressed, leading some expert observers to cast doubt on the government’s commitment to fix them. Take the case of the upward trend curve for domestic arrears – the money that the government has failed to pay to businesses that supplied it goods and services, civil servants who have retired and are not getting their pensions and those in service but not earning salary, and of complainants against the government who have won court awards. The AG notes that in just three 18
Jan 26 - Feb 01, 2018
John muwanga NAADS (corruption), Ministry of Finance (domestic arrears, funding shortages) Public universities (unapproved salaries) Local governments (low absorption), URA (tax exemption follow-up, low targets, missed royalties gold) Ministry of Lands, Housing and Urban Development (land registration) Youth Livelihood Programme ( Shs150 billion funding gap) Public service (staffing gaps) UEGCL (dams supervision)
years, the unpaid arrears have swollen from Shs1.3 trillion in 2014/15 to Shs2.2 trillion in 2015/16 and Shs2.9trillion in 2016/17. The AG says the situation is getting beyond manageable levels. For example, although the domestic arrears were at Shs2.7trillion at the time the 2017/18 budget was drawn up, the government only allocates Shs300 billion to service the debt. That meant that Shs2.4trillion or 90% of domestic arrears were rolled over to the next year and new debt piled on. But the AG notes another problem. About Shs1.1 trillion or about 50% of the debts were not got through proper channels. Many were got outside the budget approved by Parliament. Cumulatively, over Shs81 billion was acquired in this way. In some case, government departments, such as public universities, increase the salaries of their staff without matching resources. The AG says this happens because of weak and ineffective control systems at the Ministry of Finance, including early closure of the Integrated Finance Management System (IFMS). However, even after the ministries, departments, and agencies (MDAs) incur the debts, the government sometimes does not make any effort to pay it – leading to unsustainable increase in arrears. The AG notes that in FY2016/17, there was no budget provision for paying Shs87 billion arrears. The AG warns that failure to budget could lead to diversion of funds from service provision to settling debt. The AG says failure by the Ministry of Finance Planning and Economic Development (MoFPED) to release money as planned has led to poor service delivery. Up to 38 entities which had a total approved budget of Shs3.9 trillion, only got Shs 3.4 trillion. Generally, out of the planned expenditure of Shs19.5 trillion, only Shs17.6 trillion was released.
Tax issues
The AG notes that the Uganda Revenue Authority (URA) is performing quite well and collecting up to 96% of
news analysis planned tax revenue and non-tax revenue (NTR) in the period under review. But the AG says this is possibly because URA has very low targets; especially regarding NTR which more than doubled the set target. The AG is also concerned about tax exemptions offered to investors. The report notes that there are no clear guidelines on why some investors get exemptions and others are denied, especially within the same investment sector. The AG also notes that there is no follow-up to assess whether investors create the jobs and economic benefits they claim the tax holiday would enable them to. Instead, the AG warns, tax exemptions might lead to industrial distortions or even encourage unscrupulous companies to close shop at the expiry of the tax holiday and register new investments for consideration for fresh tax exemption. The AG says during the financial year, the country lost revenue ranging from US$3.39 million to US$ 16.95 million in royalties from the undeclared gold exports and imports- the second year in a row it happens. Now the AG wants government to expedite recovery of the prescribed royalties.
Project management
The AG notes that the government needs to supervise contractors to avoid wastage of funds. The report notes the case of Shs6billion that was borrowed for construction of 14 bridges in Northern Uganda but was not used and was instead returned to the lender – Islamic Development Bank. The report also reported that NAADS
paid Shs1.4trillion to two lead agencies in the districts of Kisoro and Kanungu to provide extension services to farmers but all the farmers interviewed indicated that no extension services were provided during the planning period. The AG advises Uganda Electricity Generation Company Limited (UEGCL) to closely monitor and supervise the works on the 183MW Isimba dam after it emerged that the dam’s supervisors were not doing a good job. He said that failure to tame anomalies may lead to high maintenance costs for the projects. He also advised management of UEGCL to enforce compliance to the Concession and Assignment Agreement (CAA) for Nalubale and Kiira Hydro Power Complex which had non-repair works at two turbines, ASR cracks on Nalubale dam and the Power house.
of the project in line with the regional partners. He also noted that 51 entities with a budget of Shs 4.4 trillion did not have strategic plans and so it was difficult to assess their performance. He said that must be fixed.
Public service staff
He also reported that the Youth Livelihood Programme (YLP) had recorded a Shs150 billion funding gap, representing 56.7%. He warned that inadequate funding of the programme may constrain the achievement of the intended programme objectives of improving livelihoods of the poor and unemployed youth.
The AG also noted and advised on a review of the approved staffing structures of seven government entities where he found a total of 38,572 vacant posts. These included key staffing posts like Deputy Solicitor General, Director Civil Litigation, Principal State Attorney in the Ministry of Justice and Constitutional Affairs. The biggest shortfall in the staffing out of the seven entities was in the Uganda Police Force (UPF) with a staff shortage of 28,791.
Standard Gauge Railway
On the construction of the Standard Gauge Railway, the AG noted that government should ensure that the land acquisition process – which had delayed by the time of compiling the report – is expedited so as to enhance progress
Civil society reacts to auditor general’s report Ugandans need to politically punish people they vote into power and they fail to deliver to them the required services. That is the view of Sebastiano Rwengabo, a research fellow at The Advocates Coalition for Development and Environment (ACODE) while commenting on weaknesses in service delivery as noted in the recently released report for the year ending June 30, 2017. Rwengoba told The Independent that every financial year the AG notes irregularities in all sectors but the government has failed to fix them. “Uganda has reached a point where the political will to do things is zero,” he said, “but the technical will is there,” he added. For higher offices, like the Presidency, he said that it takes the will of the President himself and those around him to do things differently and in the right way. “If political leaders don’t have that we
are in trouble,” he said. Rwengabo said that there is need to enforce the standards and legal framework for government services to yield results. Rwengabo was particularly concerned about land, and said that Civil Society needs to come out strongly and advocate for fair laws and policies on land. Jane Nalunga, the country director for Southern and Eastern African Trade, Information and Negotiations Institute (SEATINI), was concerned about the lack of policy for tax incentives. She told The Independent that the government needs to penalise investors who breach contracts they sign with government at the time of getting an incentive. She said carefully thought about incentives – tax, land, credit and more – have capacity to attract foreign direct investment and boost economic growth
Ministry of Lands
The AG also noted that the Ministry of Lands, Housing and Urban Development had a number of weaknesses that require redress and these include; delays in processing land registration documents ranging from 13 to 134 days contrary to the prescribed period of two to 20 days, low level of registration of land which is as low as 5% in rural areas, delay in completion of revision of land policies, laws and regulations and more.
Youth Livelihood Programme
Improvements made
Commenting on the AG report, Henry Musasizi, the MP for Rubanda County East who has been a member of Public Accounts Committee (PAC) for seven years, described the 2017 AG report as “not worrying”. He said there has, in fact, been a general improvement in adherence to laws and policies. He cited an increase in the number of entities now producing financial reports and government programs that are being implemented in line with the National Development Plan (NDP). Musasizi attributed the poor performance of some sectors of government to lazy public servants who do not want to put in extra work to deliver “surplus” results. He also blamed it [poor performance] on poor planning and prioritisation. He supported the AG’s recommendations on widening the tax base to collect more revenue, ensuring value for money for the YLP and Operation Wealth Creation (OWC). He said the AG also needs to tailor their report to target outcomes by government agencies to ensure compliance and value for money. “It is high time government started implementing the AG’s recommendations without even waiting for PAC to push for them,” Musasizi said . Jan 26 - Feb 01, 2018
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NEWS ANALYSIS
President Museveni at the judges conference on Jan. 22 at Speke Resort Munyonyo. COURTESY PHOTO
Museveni and the death penalty President says it’s his way of dealing with the rampant killings happening in the country By Ian Katusiime
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resident Yoweri Museveni has repeated his determination to sign death warrants for those who commit offences like murder. He says it is his way of dealing with the rampant killings happening in the country. While addressing the 20th Annual Judges Conference at Speke Resort Munyonyo on Jan.22, Museveni regretted not signing the death warrants over the years for convicts of murder. “For us we believe in the old law of Moses of an eye for an eye, and a tooth for a tooth,” he said, “I will support the death penalty until I retire from leadership.” This was the second time Museveni was citing the death penalty after he said those who kill should be hanged during a commissioning ceremony for prison warders a few days ago. The judges’ conference which ran from Jan.22- 25 was held under the theme ‘An inclusive judiciary for sustainable development’ and was attended by judges, magistrates, registrars and officials of Evolve; an organisation of lawyers based in the U.K. Museveni also said he was disappointed by the sentence of eight months handed out by City Hall Court to six butchers found guilty of using chemicals to preserve meat and fish. “How do you hand out eight months? People who use formalin to preserve meat, those ones deserve twenty years,” he said. The President also rejected calls for appointment of more judges and their demands for higher pay and retirement benefits saying Uganda was still a recovering society unable to take care of all the demands of civil servants. “How do you fund institutions in a post recovery phase of a formerly failed state?” 20
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He said the country had other competing needs and added it was a deliberate policy for Uganda to prioritise road infrastructure where the Works sector gets Shs4 trillion and the Judiciary Shs134 billion per annum. Museveni told the judiciary to address the problem of wastage in its sector and that in the wider government manifested in constant travel on so-called benchmarking trips.
Judges’ demands
The Chief Justice Bart Katureebe laid out a list of demands he said were vital for the judiciary to effectively perform its duties. Katureebe said the judiciary needed 532 Grade 1 Magistrates but only 192 are available and 100 Chief Magistrates yet only 42 are present. He said the country needed 82 High Court judges yet there are only 50 and also said that Court of Appeal judges needed to be doubled from the current number of 14. Katureebe also reminded the president about the promises he made to judicial officers in September 2015 that remain unfulfilled. These include retirement benefits for judicial offers, houses for judicial officers, vehicles for magistrates handling land disputes, and Shs10 billion for the Uganda Judicial Officers SACCO. The chief justice called for the reinstatement of Local Council Courts which he said provide justice for rural communities. “LC Courts will shoulder the millions of unmet needs. If this institution is reintroduced, it will help a great deal in solving cases in villages because there are fewer negative emotions involved.” The head of the judiciary lamented the perennial problem of case backlog that is most common in land, family and criminal cases. “An average land case takes 15 months to resolve”. However, Katureebe noted that the judiciary had made some strides with the
automation of courts, introduction of small claims procedure, plea bargaining; the latter two which have lessened congestion in detention centres.
Magistrates cry out
Godfrey Kaweesa, the Chief Magistrate of Iganga and president of Uganda Judicial Officers Association told The Independent that Iganga currently has no resident judge yet it has a High Court circuit and therefore judges have to come from Jinja to handle cases. “When the judge comes, he has to sit in the chambers of the chief magistrate and the chief magistrate sits in the library.” Kaweesa also lamented a discrepancy between the welfare of judges and magistrates even though the entire judiciary is grappling for more resources altogether. He says after the Penal Code Amendment Act in 2009 and the Magistrates Courts Amendment Act, the jurisdiction of the chief magistrates were enhanced but it is yet to be translated into practice because it did not come with a budget. Under the State Brief funds, chief magistrates handle semi-permanent cases like defilement, arson where maximum sentence is life imprisonment. “In this arrangement, accused persons must be represented by the state yet money under State Briefs is so limited and the sessions have 40 cases per month”. He says lawyers are shunning the chief magistrate’s court to represent accused persons in this scenario and subsequently suspects are languishing in jail. “There is only Shs1 million per month for all cases, yet the judges were getting Shs40 million for the cases; this is form of a discrimination”. He also said the judges are more privileged through benefits like security and yet magistrates dispose of 80% of judiciary work but with a much smaller budget.
RWANDA
Volkswagen in Rwanda German carmaker eyes nation’s e-mobility By Agencies
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f everything goes according to plan, the first car “made in Rwanda” could be on the streets as early as May, according to the German automobile giant. After South Africa, Nigeria and Kenya, Rwanda is the fourth African country in which VW has invested. “I think we have come to the right place,” said Thomas Schäfer, managing director of VW in South Africa. “The attention, the focus and the will is here to implement this.” Moreover, Schäfer said, he was impressed by the support from Rwanda’s government right from the signing of the letter of intent in December 2016. He spoke of the government’s anti-corruption drive and Rwanda’s tech savvy younger population. The investor-friendly climate is one of the reasons why Rwanda is often treated as a “darling of the West,” despite its democratic deficits.
The future is electric
As with the Kenyan plant which was opened in late 2016, VW only plans to assemble the cars in Rwanda. The parts will be imported from a manufacturing plant in South Africa. In the first production phase, which will last approximately one year, VW hopes to assemble 1,000 cars, which will include the Polo, Passat and SUV models. The automaker plans to create between 500 and 1,000 jobs and it says that it will invest $20 million (€16 million). For Rwanda, this is an important move. “Volkswagen’s investment that they just announced is extremely important for Rwanda,” said Clare Akamanzi, CEO of the state-run Rwanda Development Board. “It demonstrates that a global company like VW can find a vital business in Rwanda. One; that they can begin to assemble motor vehicles in Rwanda, which is something that has not been done in Rwanda before. And secondly that it can actually help to solve a transport problem in our country.” Indeed, VW does not just plan to sell cars in Rwanda, it also wants to sell mobility. The plans are part of what is being called the Volkswagen Integrated Automotive Mobility Solution in Rwanda by Volkswagen Group South Africa. Schäfer knows that only a small section of the population will actually be able to afford new cars. And so he plans to introduce car sharing and renting vehicles in the capital Kigali – all of which will, of course, be organised via an app and smartphone.
A Rwandan software development startup company Awesomity Lab has been appointed to develop the mobility App. If everything runs as planned, Rwanda will also soon witness the introduction of the first electric cars on its roads. “In developing countries like Rwanda, we often skip development steps,” Schäfer said. “We’ll start with what we have already announced. But of course we’re already looking at the next phase and I think that this should be easy to implement in a country like Rwanda and a city like Kigali.” Rwanda has a good network of roads and, due to its small size, setting up charging stations across the country should not be a problem. Rwanda seems very open to Schäfer’s ideas. The country aims to become a leading example of environmental protection and sustainability on the continent. Electric cars fit well in this plan. Young, tech savvy and easy to do business with, that’s how investors view Rwanda
Cobalt is the key
Electric cars also mark a major change within VW itself. The carmaker plans to invest 34 billion euros in the development of electric cars in the next five years. It hopes to become the leading electric car maker by 2025. To achieve this, the company needs one major component: cobalt. And the biggest reserves of the rare metal can be found in Rwanda’s neighbor, the Democratic Repub-
lic of Congo (DRC), which produces 60 percent of the world’s cobalt. In 2016, car makers felt the squeeze after Amnesty International visited mines in DRC and came back with alarming reports. “The miners are extracting cobalt using very rudimentary hand tools and no protection. The pits they dig are often deeper than the 30 meters (3.2 feet) legally stipulated. They could go to 60 or 70 meters. They have no supports. These people are working in really dangerous conditions where pit collapses and deaths is a common,” said Amnesty’s Lauren Armistead. The batteries for electric car require much more cobalt than, for instance, smartphones. For Armistead, this means a leading carmaker like Volkswagen should take responsibility for this. “If they want to become the major player in e-vehicle production, they need to position themselves as a leader in terms of their cobalt sourcing practices,” she says. “It is really paramount that the electric vehicle revolution is not built of the backs of children and adults in hazardous conditions in the DRC,” she added. While it might still be a while before electric cars hit the streets of Rwanda, cobalt is already a central component for VW’s future plans. Schäfer, however, denies that the company’s investment in Rwanda has anything to do with its proximity to the DRC. Source: DWD Jan 26 - Feb 01, 2018
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INTERVIEW
`We demand explanations about illegal and unjust arrests of Rwandans in Uganda’ Maj. Gen. (Rtd) Frank Mugambage is Rwanda’s ambassador to Uganda. He spoke to The Independent’s Ronald Musoke on a range of bilateral issues between Rwanda and Uganda. How would you describe the current relations between Uganda and Rwanda? ilateral relations (between states) usually look at a very broad range of issues and these take into consideration building of cooperative arrangements in diverse spheres. When you are doing that even with neighbouring states, you should give it the consideration that there are historical relations involving people and the conduct of these relations are done in a certain way. That is why we are here and that is why Uganda has an embassy in Kigali. For all those relations to be built and maintained, a lot of work has to be put in. One of the areas that have to be taken care of is the fact that we always point out what is working well and what is not; what is going right and what’s going wrong. There is no doubt that over the years, Rwanda and Uganda have developed those mechanisms to deal with those challenges. We have a memorandum of understanding in different sectors including; trade, security, education where our people work together. We even have a framework—the Joint Permanent Commission—which is headed by the two states’ ministries of foreign affairs. These are supposed to meet regularly and make sure the different sectors keep in touch and work for the mutual benefit of the people in the two countries. So (when) you raise issues that you say have been in the media; these are happening in Uganda, they didn’t happen in Rwanda. These are issues that involve the illegal and unjust arrests of Rwandans in this country. We have come to learn about the people who get arrested through very illegal processes, taken to places that even their families don’t know; and there is no communication between the two states. We only discover that those behind the arrests are agents of the Ugandan state because we find information from those arrested that they have been held by institutions of the Ugandan state—particularly the Chief-
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taincy of Military Intelligence (CMI). People are held there and I am sure you have learnt that some of them have since been extradited with all sorts of stories talking about how they were harassed and tortured. But all this has been happening outside the formal arrangements that were put in place to deal with issues like this. And like I said earlier on, in our effort to build relations, we demand explanations so that these issues do not interfere with the positive things that we are doing together. So, if I may ask again, what do you think about the current relations between the two countries? I have told you that the conduct and the building of relations between states is something that is not built on a spark. I have told you that it is a broad reality. Rwanda and Uganda will be here; Rwanda and Uganda are going to be neighbours and Rwanda and Uganda have a long term relationship. Rwanda by the way is not talking about working
towards building strong relations with Uganda alone—its immediate neighbour. I think Rwanda is fully committed to the whole idea of the East African Community integration or even African integration. But like I said, to be sure that that works, you also have to come out and talk about what might undermine those positive efforts of building relations.
INTERVIEW As Rwanda’s High Commissioner to Uganda, how have you been dealing with these tensions? We have been engaging the Ministry of Foreign Affairs which is our direct collaborator in Uganda. But we have also engaged with people at different levels including the institutions that are mentioned in these cases, CMI and everybody. This information has been shared and we are trying to follow up. There have been reports here that some Rwandans with refugee status have been involved in subversive activities back home. What is the truth about these reports? Well, there are elements of dissidents who try to organise themselves with the intention of trying to do something against the government and people of Rwanda. We have learned that there are elements working with enemies of the government and people of Rwanda, especially those who work with the dissident groups, people who ran away from accountability and other wrong reasons; they formed terrorist organizations like the Rwanda National Congress (RNC) headed by somebody who used to be in the government of Rwanda. In fact, sometime back the same terrorist organization (RNC) threw grenades in Kigali and killed innocent people.That is not to say that these constitute (a threat) to Rwanda because Rwanda is a country that is sovereign and is capable of guaranteeing its national security. But that does not give leeway to people to have a haven where dissidents can come and recruit with the intention of training and conducting terrorism. This is something that must not be allowed to happen; certainly not by a friendly country, and not by a neighbour. I can assure you that Rwanda will never allow that kind of thing to happen. Rwandan security officials, at least going by media reports, have been abducting some Rwandan nationals and forcefully repatriating them to Rwanda, acts which contravene international law. What explains this sort of action from the Rwandan government? The question we have asked and we will continue to ask is, why wouldn’t anybody say, let’s find that person (arresting people)? Why wouldn’t people look for those socalled agents and bring them over and say look, this one is so and he has done this and that. It is one thing to claim something, and another to prove. I mean let’s be factual. I can tell you that there is no such a thing that has happened. Whoever is talking about it is may be creating a situation where they can now react by doing the kind of things they are doing. Can we name cases of who has been taken, by who and when? This is what should be happening. I know there is
one case that has been mentioned; the case of a one (Joel) Mutabazi who came here as a dissident but had case files in Rwanda. His case was handled through the channels I talked about earlier on. His going back was something that was done under the understanding of the two countries with the involvement of the international legal framework because he had cases to answer. That happened in 2013. So why should it be coming back now to even allege that it was a kidnap? We have even shown it that, yes it was done but it was done through the legal channels and he went through the Rwandan channels and he answered his charges and the Rwandan courts handled him. So we cannot base on that to make a general claim that people are here. Look for them, get them and bring them over. Since 2011, Presidents Yoweri Museveni and Paul Kagame have worked together to fast-track some of the East African Community’s flagship projects such as the Standard Gauge Railway, the East African Tourism Visa and the national ID for travel across the region. Do you think the current tensions between the two states might have a setback on some of these regional integration projects? You are making reference to the initiative by our heads of state (Kenya, Uganda and Rwanda) on what was referred to as the (northern corridor projects). This was an initiative out of the realisation that countries of this region needed to work on the infrastructure that would help us mutually benefit from the development process that we are all involved in. You did mention the free movement of people so that citizens of these countries can move without necessarily having passports—this has been accomplished. We have other achievements like removing barriers along the trade routes. Remember that, for example, goods used to take very many weeks from Mombasa to get to Kampala and Kigali. That was reduced to, I think, six days. They were talking about internet connectivity (optic fibre connectivity) and sharing some of the resources such as electricity. So some things have been accomplished while others are still on the way. There is always need to fast-track them; especially for those projects that greatly benefit all of us. But one cannot say that that initiative has stopped, no it hasn’t. And we need to continue to engage and see how it goes. We recently saw Uganda’s Foreign Minister, Sam Kuteesa, travel to Kigali to meet the Rwandan president. Is this one of the signs of a return to normal relations between the two states? I did not attend the meeting myself but the Rwandan Foreign Affairs ministerstated that the president of the Republic of Rwandareceived Sam Kutesa, Uganda’s Foreign
Affairs minister with a message from President Museveni and they had a good discussion mainly on integration. President Kagame stressed that for integration to be successful, there has to be something for everybody— all partners must win. They further had discussions linked to the state of bilateral relations, including the continuing arrests and disappearance of Rwandan citizens in Uganda which are causing tension and many Rwandan families to petition their government to intervene on behalf of their loved ones. What’s your reaction to the issue of the Rwandan refugees currently living in Uganda who we are meant to understand will be repatriated to Rwanda very soon after Rwanda invoked the UNHCR’s cessation clause? The cessation clause is under the UN system which means that people who have left their country to seek refuge (elsewhere) can return home once the conditions that made them flee are no longer there. In the case of the UNHCR, it stops extending assistance to these people because it has no basis and for the case of Rwanda, that process has been examined for those people who left between 1959 and 1998. It is the UNHCR that came to the conclusion that, yes, we think Rwandans should not have refugee status because the conditions that existed at the time no longer exist and there is no justification for them to continue being refugees. That is when the UNHCR set the date for the application of the cessation clause. That cessation clause came into effect on 1 January 2018. In other words, for the Rwandan refugees who left Rwanda in 1959 and 1998, there is no justification for them to be considered refugees anymore and the UNHCR will withdraw its support. But what happens is that the host country could consider it appropriate to give these people permanent residence or citizenship. Those are all considerations. But the bigger issue is that Rwanda accepts and Rwanda has always been open and we have had very many former refugees returning. So, the doors are open and the facilitation is there for those who might want to come back home. Your last word? It is extremely important to emphasize the fact that Rwanda is very committed to building and reinforcing mutually beneficial relations in the neighbourhood. You are aware that in fact His Excellency our president has been given the responsibility to head the African Reform Agenda and this year, Rwanda is also taking on the Chair of the African Union. We are all for unity and solidarity, not only here but beyond. So anything that undermines that is something we take seriously and should not be allowed to happen Jan 26 - Feb 01, 2018
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Will Uganda’s bank for cooperatives be a reality? Cooperative banks worldwide were financed by cooperatives societies
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By Isaac Khisa
or some time now, Uganda’s cooperatives societies have expressed the need to re-establish the Cooperative Bank as their main source of capital for production, processing, diversification and value addition. Whereas they seem to have made a resolution to start the process of re-establishing the bank that collapsed nearly two decades ago to serve the interest of their members, the question that lingers among stakeholders is how the proposed lender will be financed. Ivan Asiimwe, the Secretary General of the Uganda Cooperative Alliance Ltd, said during the one –day national dialogue to members of cooperative societies and other stakeholders at Grand Imperial Hotel that they are looking at four financing options to re-establish the bank. These include; purchase of shares by cooperatives, a joint venture between cooperatives and a strategic investor, a joint venture between government and strategic investor, with the government offloading shares to cooperatives directly at a later stage or government financing the proposed lender and gradually selling its shares to the public through the Initial Public Offerings on the stock market. However, he was quick to point out that while the government can utilise some of the funds meant for the Uganda Development Bank (UDB) to capitalise the Cooperative Bank, a financial institution dependent on government might face high portfolio risk, sustainability issues and susceptible to unhelpful political influences. “Of particular concern is high risk of default on loans and favouritism in recruitment of staff when government is involved,” he said. He said it is time for the country’s cooperative societies to choose a financial model for the proposed commercial bank. None of the senior government officials 24
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Ivan Asiimwe,
Fred Muhumuza from the ministries of finance, trade and Bank of Uganda were present to respond to the proposed plan even when they were invited and time allocated to present their views. According to Bank of Uganda (BoU), the core capital to start a commercial bank in the country stands at Shs25bn. This excludes costs with regard to setting up
branches, technology and salaries. The cooperative societies’ move to reestablish the Cooperative Bank is based on fact that whereas the government initiated various interventions to extend financial services through Savings and Credit Cooperative Societies and the Micro Finance Support Centre following the closure of the lender in 1999, there still remains serious gaps in agricultural lending – insufficient funds, high interests rates and loan products not aligned to the peculiar needs. The cooperative societies argue that the current credit arrangement by the country’s 24 commercial banks do not favour rural communities, farmers, most Small and Medium Enterprises due to high interest rates but also due to risks involved in the production and value chains of the different products. As a consequence, the cooperatives and SMEs, say they have failed to reach their full potential due to limited access to financial services. “We believe that the re-establishment of this bank will deepen financial services, improve financial inclusion, generate revenue for cooperatives, enhance savings and increase ownership of the economy by Ugandans hence helping society for economic transformation and relieve the economy,” he said. Fred Muhumuza, a development economist and former advisor to the Minister of Finance, however, said the options of a government partnering with the strategic investor and the government financing the bank wholly and later offloading shares to the cooperative societies is impractical. “This government has its own child and for years it has failed to capitalize it’” he said, in reference to Uganda Development Bank. The government has in the past three consecutive budgets promised to inject huge capital into UDB but nothing has happened, and thus limiting its ability to extend long terms credit facilities to the population.
business Muhumuza said the national budget is already overstrained and heavily constrained and that this makes it impossible for the government to take on more responsibilities that require capital. He recommends that cooperative societies buy shares in the planned bank for ownership and membership as they seek for a strategic investor with the government as a guarantor to mobilise more capital. “It is at this stage that we shall need government not to bring in money but provide guarantee to this new investor,” he said. Yasin Nnume, the Chairman Board of Uganda Cooperative Savings and Credit Union Ltd agrees with Muhumuza’s views. He suggests that the country’s 18,000 cooperatives societies buy shares in the bank even as it strives to look for a strategic investor within or outside the country. “We saw this long time ago,” he said. “For instance, when we wanted to open up an insurance company, we partnered with Cooperative Insurance Company of Kenya.” He says the cooperative societies in the country only need to come up with a committee to carry out the feasibility studies, analyse the financing modalities and look for a strategic investor as it was the case with the establishing of an insurance company. Uganda Cooperative Savings and Credit Union Ltd (UCSCUL) and the Uganda Cooperative Alliance Ltd partnered with the CIC Insurance Kenya in 2015. UCSCUL and UCAL own 51% of the business while CIC Africa, the parent company of CIC Insurance Kenya, owns the remaining shares. This new development comes at the time when cooperative societies in Tanzania and Rwanda are also laying down strategies to unveil cooperative banks. Tanzania Federation of Cooperatives revealed end of last year that they are seeking Tshs 22bn to establish a cooperative bank. TFC Executive Secretary, Willigis Mbogoro, said the lender to be known as Tanzania Cooperative Bank was mobilising the funds from its 37 cooperative unions and individual members to raise the funds. This will follow Kilimanjaro Cooperative Bank Ltd that was established in 1996, serving the country’s Kilimanjaro region. Rwanda plans to do the same soon after President Paul Kageme ordered the Trade and Industry Minister in 2014 to establish a cooperative bank to be known as Rwanda Cooperative Bank. Research carried out by The Independent in the region and the globe indicates that cooperative banks were financed by cooperatives societies and individuals. For instance, in Kenya, the Cooperative Bank of Kenya, which was initially a cooperative society in 1965, was granted a bank licence in 1968. This was followed up by a directive from the government instructing all cooperative societies in the country to
transfer their deposits to the Cooperative Bank of Kenya and that all cooperatives buy the bank’s shares. It was until 1989 that the established bank converted to a fullyfledged commercial bank and increased its products menu. In Ethiopia, the Cooperative Bank of Oromia, registered in 2004, is fully owned by the cooperative societies, individuals, organisations and associations.
Cooperative banks elsewhere
In Europe, savings and cooperative banks started as far as 19th century after communities especially farmers failed to secure capital from conventional banks. And since then, some of the cooperative banks have been able to prosper and at times even outperform the commercial and purely shareholder oriented banks. For instance, in Austria, savings and cooperative banks’ total assets, loans and deposits stand at around 50% in terms of market share of the entire banking industry, according to a paper presented at Goethe University, Frankfurt, Germany in 2013 dubbed ‘Savings Banks and Cooperative Banks in Europe.’ The paper co-authored by Dilek Bulbul says there are two groups of cooperative banks in Austria, the larger group of Raiffeisen banks operating mainly in rural areas and the smaller Österreichische Volksbanken-Gruppe (ÖVB group) with an urban business focus. In France, Banques Populaires Caisses d’Épargne (BPCE) Group is owned by nine million cooperative shareholders, and serving more than 31.2million customers while Crédit Mutuel (CM), with 7.4million customers, is owned by association of cooperatives. Similarly, Crédit Agricole (CA), sometimes called the “Green Bank” because of its historical ties to farming, consists of 39 cooperatives and small banks. “Together they hold market shares of nearly half of total banking assets, loans to households and businesses and customer deposits,” the paper says in part. In Spain, the savings and cooperative banks are said have had an impressive and growing market share of around 50 % and were so profitable and efficient that one would not be able to see any difference in their performance to the private banks including the giant Spanish banks Santander and BBVA. However, cooperative banks have disappeared in some parts of Europe. For instance, in Great Britain, the former public savings bank (TSB) was sold to Lloyds Banking Group, and several cooperative banks, the so-called building societies, were converted into corporations and some of them sold to large private commercial banks. Similarly in Netherlands, savings banks have disappeared and the formerly inde-
pendent cooperative banks have been amalgamated into one big national bank – Rabobank. Rabobank is traditionally a farmers’ bank and it still holds 85% - 90% market share in the agrarian sector in the Netherlands.
Lessons leant from the defunct Coop Bank Charles Kabuga, the former General Secretary, UCA, said cooperatives need to avoid past mistakes similar to those that were made during the existence of the defunct Cooperative Bank. He pointed out inadequate capital for the bank since it was established in 1964, poor credit management, insider lending and poor repayment culture as some of the reasons that led to the collapse of Cooperative Bank as a result of becoming insolvent. “There were no credit manuals; credit management was weak as there were no approvals from the Board, no application forms and no financial statements from borrowers, lack of analysis, follow-up and collection efforts,” he said adding, “As the loan portfolio grew in mid 1991 given the administered funds, the quality of loans did not improve with 75% of the loan portfolio being classified as Non-Performing Loans.”
What next?
Going forward, Stephen Mukitale, who previously chaired the Parliamentary Committee on National Economy and now sits on the National Budget Committee, said there’s need for cooperative societies to petition Parliament for the establishment of Cooperative Bank. He suggests that the money paid to the Youth and Women through the Youth Livelihood Programme and Uganda Women Entrepreneurship Programme can instead, be directed towards establishment of the bank for the benefit of the wider population. Muhumuza suggests the cooperative societies need to nurture and grow the asset base of the Uganda Central Cooperative Financial Services Ltd (UCCFS) and transform it into a bank rather than starting a new entity. “Let’s find the capital that UCCFS will be required to operate smoothly, because it is already authorized to work anyway,” he said, “Then as it grows, we shall have a clear evidence, and we can apply to BoU to become a bank. We already know what the central bank needs.” Started in 2008 as a financial services provider for savings and credit cooperative societies, UCCFS has nearly 400 cooperatives countrywide, with a Shs5bn capital. Muhumuza said the proposed Cooperative Bank should also not compete with the UDB; instead should form a collaboration to share risks and facilities. Jan 26 - Feb 01, 2018
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business By Independent staff
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espite increased allocations by government, private players and the donor community towards Uganda’s agriculture financing, the sector has remained underserved. A 2017 report by the Uganda Agribusiness Alliance on agriculture financing notes that whereas several government and donor facilities have been established to provide capital for agriculture enterprises, majority of those who need the funds have not been served. The report found that agriculture remains financially underserved due to low bankability of the enterprises. This is majorly caused by high real and perceived risk levels, lack of business and investment preparedness, which experts say is due to lack of appropriate advisory services. The report notes that majority of agriculture enterprises in Uganda lack capital at the start up stage when it is most needed. But all types of financiers including grant making bodies, venture capital firms and commercial banks are all eager to finance agriculture enterprises that have taken off. Most enterprises are reported to lack capital in their first three years of establishment when investment in things like green houses, irrigation and storage infrastructure are made. Even after these investments have been made in there is still little interest from lenders, until banking history, which can take up to seven years has been established. The report notes that most financiers prefer to only fund business that are well established. This establishment can take up to ten years. In addition to the failure by financiers to lend money to enterprises that need it, Fred Muhumuza an independent researcher with expertise in Development Economics adds that the policy environment for the demand and supply of agriculture financing is also poor. Muhumuza cites the case of Bank of Uganda which currently requires banking institutions to provide for a default cost of 20 per cent of the loan, after 60 days of a borrower not paying. This amount increases to 30 per cent in the next and keeps increasing until it reaches 100 per cent. Muhumuza says that such a blanket policy requirement disadvantages agriculture enterprises, which employ majority of Ugandans and whose products should be designed according to seasons. Seasons can be anywhere between four months and a year, making it impossible for enterprises making money out of agriculture to pay their loans within the Bank of Uganda mandated period. This makes lending to agriculture costly for licensed financial institution.
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A farmer harvest coffee
Failing access to agriculture funding Agriculture finance remains low As a result of all these problems, agriculture financing has remained low, despite several initiatives intended to change this state of affairs. Irene Sekamwa the Agrifinance Policy advisor at the Netherlands Development Agency (SNV) says that research done between 2007 and 2015, found that agriculture financing remained below 11 per cent of the total private sector credit. Although no research has been done on this subject since, as Bank of Uganda prefers to track credit to the private sector and the government funded Agriculture Credit Finance, experts say the proportion of agriculture financing can’t have changed much, as it had started to decline by 2015. Poor financing is despite different investments in this area by both government and the donor community, whose development experts have over the years, bean looking to increase capital to enterprises that employ a majority of Ugandans. Currently Uganda is spending money in different financial institutions as a way to increase agriculture production and agroprocessing. In the financial year 2018/2019, Uganda will for instance Uganda allocate Ush80 billion ($21.9 billion) to the development banks. This is in addition to the Ush50 billion ($1.4 million) provided to Uganda Development Bank for capitalisation. According to the budget framework paper, currently being discussed by parliament, the funding to the likes of the Uganda Development Bank and East African Development Bank is meant for capitalisation of these financial institutions. With cheap capi-
tal from the development banks, Uganda is supposed to register increased agriculture production and agro processing leading to enhancement of the population’s incomes. In addition to funding the development banks, Keith Muhakanizi the permanent secretary in the ministry of finance adds that due to political pressure, there are several other initiatives including the Agriculture Credit Facility (ACF), the northern Uganda social action fund (NUSAF), the women’s fund and youth fund, projects through which government disperses billions of shillings for agriculture financing. Through the ACF Uganda has so far disbursed Ush141.1 billion ($38.6 million), but would have spent more had the number enterprises in need of this money been more. Another Ush40.1 ($11 million) will be disbursed in the current financial year for the women’s fund. This is in addition to a youth revolving fund worth Ush265 billion ($72.5 million), which has been temporarily suspended due to high default rates. The government also owns credit institutions like the Microfinance Support Centre, Post Bank and Pride Microfinance all of which provide agriculture financing. Government’s efforts are supplemented by the donor community, as several other initiatives including the agricultural business initiative (aBi) which is funded by several European countries to provide capital and advice to enterprises along the agriculture value chain. Under a different initiative the European Union working with the National Social Security Fund and the International Fund for agriculture established $12 million fund for the same purpose.
Executive Style
Deiplaces boosts tourism marketing What is your management style as a manager? anagement is a very complex task. However, the easiest way to go about it is to put God fast, and the rest can always follow. Secondly, I respect colleagues. I lose nothing when I listen, advise and seek to be advised. I do not take management decisions by myself, we take decisions as a unit. So we share the developments as well as the challenges at Dei Group International which is the parent company of Dei Technologies International, the “mother” of deiplaces.
M
Recently, you unveiled a social media platform known as Dei Places. How does this platform work? How different is it compared with the usual social media platforms? To start with, the main objective of the platform is to advance Africa’s tourism potential to the rest of the world. There is so much about Africa that is not known, not even by us the natives. We focus on individuals, organizations among other entities sharing information in text, pictures, videos and audio about places. Places can be a business, a tourism site among other entities. DeiPlaces gives the user an opportunity to open up a place, which is a page within the platform. The user can then post content about anything they want to promote in that place. How can an individual join/ start using the platform? There are two ways. One can either visit the website which is www.deiplaces.com and sign up or download the deiplaces app onto their phones and sign up. The process is easy and can take
Magoola Matthias, is the CEO Dei Group International, the firm behind social marketing platform, Dei places. He spoke to The Independent’s Isaac Khisa about social marketing to drive Uganda and Africa’s tourism potential. one less than a minute. What are the key drivers for launching the platform in Uganda? Much as the platform is being used internationally, its core objective is to popularise Africa’s potential to the rest of the world. It is obviously true that Africa’s annual tourists are very low in number. Such a situation is not a proper representation of Africa’s tourism potential. Marketing Africa has been identified as the major cause for the low numbers and deiplaces is here to close that gap. What is your assessment of social marketing in Uganda? Uganda is one of the fastest-growing countries in internet penetration, which stands at 13% as of August 2017. Many more people are starting to appreciate this wave. Over 95% of the people who use internet are ardent social media users. Last year and now 2018, Uganda has seen one of the strongest digital waves ever witnessed. Companies are
now considering social media much more than they used to. As the wave continues to take toll, people should know that Dei Places has a sieved audience for business not the clattered space our other colleagues provide. On this note, we invite people and companies to sign up to Deiplaces create places and start marketing. If you say this platform is here to help people market places, how do you benefit from the innovation? Right now, we are focusing on ensuring that all the potential tourism sites on the African continent are given attention. We are focusing on ensuring that the number of tourists coming into Africa multiplies. We are in times where so many people do not have jobs. And this is not only here in Uganda but across the globe. We want people to market those places using the platform market their places to tourists. We want them to market their business for more clients, get more
connections among so many other things. How will this platform generate revenue? The platform will be able to make money through its booking option where people can book for hotels, transport, tourism sites among other facilities. Here, different facilities will strike deals with the platform where they will both arrive at a win win situation. So far, a number of facilities have already signed up and people are already using the option. However the company is not charging for it now and it’s not about to in the nearest future. Apart from this new platform, what else do you offer as Dei Group International? We are enthusiastic innovators who have introduced quite a number of successful products. About a year ago, we launched the first-ever antimalarial drug produced on the African continent. The drug has been appreciated not only here in Africa but internationally. We also have a Cross-mobile Money platform (XMM) and many other products in the offing. Very soon, we shall be coming back to give you news on another innovation. Where do you see Dei Technologies in the next five years? At Dei Group, our goal is to build one of the World’s great Companies that will positively change the lives of the African People and the World at large. We make decisions in the context of Forever! We are not making decisions for the expediency of getting through one day. We are innovating for this and the next Generations.
Jan 26 - Feb 01, 2018
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business ENERGY
REAL ESTATE
Total Uganda unveils individual fuel cards
Property market in Uganda more stable- Knight Frank
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otal Uganda has unveiled a new cashless payment solution for its customers as it strives to increase convenience at all its 128 service stations as well as enhance revenue growth. The new card that goes for Shs11, 800, will also enable customers pay for other services such as Total wash, cooking gas and solar products. Florentin de Loppinot, the managing director, Total Uganda Limited, said the new card has been designed to help individual customers plan and manage their spend better due to introduction of ceiling limits, choice of service and analytic reporting. “In the past, large companies were the only ones with fuel cards to manage their fleet but we realized the need for individuals who want to control the fuel they use
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Total Uganda MD Florentin De Loppinot (L) and the firms Retail Manager Angela Bogere launch the Individual fuel card at the Kampala Serena Hotel on Jan 18. INDEPENDENT/ISAAC KHISA for efficiency and cost saving, “he said. “We are (also) working on seeing how to reduce cash transactions at our fuel stations but transactions go on.” Presently, Total Uganda has more than 11,000 fuel cards in circulation.
AVIATION
Emirates, Flydubai moves 165,000 passengers
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op executives of Emirates and flydubai Airlines plan to offer travellers more connectivity and flight options in 2018, with new codeshare flights planned for various destinations across the globe including Entebbe. Both Dubai-based airlines currently offer customers with code-
shares to 81 destinations. The partnership of the two airlines, which started in October last year, initially began with codeshare flights to 29 cities, and this has quickly expanded to meet demand as customers realise the benefits of increased flight frequencies.
ENERGY
CSR
French firm appointed to supervise Isimba Dam construction
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n Jan 18, Uganda Electricity Generation Company Limited appointed a French firm, Artelia EAU & Environment in association with KKATT Consult Limited, to oversee the construction of 183MW Isimba Hydropower Dam, ending months of bickering between government agencies. The deal is worth US$4million. The new Owners Engineer (OE) now takes over from Energy Infratech PvT Limited (EIPL) whose contract expired in September last year. Infratectech PvT Limited (EIPL) did not have its contract renewed because it is alleged to have been responsible for the shoddy work at Isimba and Karuma. 28
he property market in Uganda has not recovered to its past glory but it is more stable and less volatile than it was two years ago, according to a market update by Knight Frank Uganda, a real estate consultancy firm. It adds that many of the factors which led to the slowdown of the sector leaving property investors exposed have been reigned in. “For example, prime lending rates have reduced significantly, the shilling though still weak has remained stable, speculative development of commercial property has reduced significantly and rental levels are stabilising as office occupancy rates steadily increase,” the update reads in part. Knight Frank, however, cautions government on being quick to regulate the property market by offering knee jerk reactions to complex and structural issues like the dollar versus shilling rental regime. Despite the upbeat projection, the consultancy says the landscape in Kampala faced a dramatic change in the second quarter of 2017 when Nakumatt stores closed, causing a dip in business and consumer confidence.
The two firms will carry out a design review, quality assurance, project supervision and ensure strict enforcement of contractual obligations by the Engineering Procurement & Construction Contractor (EPCC) for China International Water and Electric Corporation, according to the contract. “We believe the new OE will go a long way to help us make sure that going forward the ongoing site works are properly supervised so that come August 2018 we have a fit-for-purpose facility,” said Harrison Mutikanga, the executive director at UEGCL. Isimba Dam Construction is at 75% completion.
Jan 26 - Feb 01, 2018
Sadolin launches Shs 180m colour center
Officials cut the tape at the launch of the Colour Centre. INDEPENDENT/JBUSINGE
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n a bid to improve its visibility in the paint market, Sadolin Paint in partnership with Joseph Kanaaba, a local businessman has launched a colour center at Freedom City Mall along Entebbe Road. The spacious establishment will be home to all Sadolin products and services, enabling customers to get a wide array of services including paint tinting and
mixing with the latest technology and colour consultations and more. Deon Nieuwoudt, AkzoNobel’s planning and execution manager, said on Jan.17 at the launch that this was an affirmation of the company’s commitment to the expansion of Sadolin footprint and growth commitment to Uganda through firming up franchise agreements with local entrepreneurs.
business
Uganda’s financial market ranked 10th in Africa By Isaac Khisa
U SEATINI CEO Nathani Irumba (L) and Country Director, Jane Nalunga address the media on the Civil Society’s position on the 2018/19 budget allocation on Jan 21. They urged government to increase the proposed Shs 119.4bn allocated to the trade ministry. INDEPENDENT/JIMMY SIYA
Trade Minister, Amelia Kyambadde (2nd L) with the Brookside team, Benson Mwangi, Joseph Owino, Vincent Omoth and Robert Walibwa upon winning the Gold Award at the President’s Export Award 2017 under the dairy products category on Jan. 18. INDEPENDENT/JIMMY SIYA
ganda’s financial market has been ranked 10th with a score of 47%, a head of Tanzania in the East African Community in the inaugural Barclays Africa Group Financial Markets Index 2017. The survey that was conducted in 17 African countries that account for 60% of the continents’ GDP, shows that Tanzania ranked 11th with a score of 44%. Rwanda and Kenya, on the other hand, ranked 8th and 5th with a score of 48% and 59%, respectively. The index by Barclays Africa Group and the Londonbased Official Monetary and Financial Institutions Forum (OMFIF), measures six pillars of financial markets namely; depth and breadth of financial instruments, access to foreign exchange, and market transparency and regulation. Other measures are macroeconomic opportunity, legality and enforceability. It intends to drive conversations among policy-makers, investors, market participants
and other partners to address gaps and track progress in Africa’s financial markets. South Africa emerged first in the survey with a score of 92% followed up with Mauritius (66) and Botswana (65). George Asante, the managing director and head of markets at Barclays Africa Group, said Uganda’s ranking is attributed to good foreign exchange access even as liquidity in its domestic foreign exchange market remains low. He, however, said the country’s stock exchange now needs to promote greater issuance of corporate bonds to be listed on its exchange as well as focus on financial literacy, training for market practitioners, liberalisation of the pension sector, public awareness campaigns and strengthening the local and foreign investor base to grow the financial market. Louis Kasekende, the deputy governor, Bank of Uganda, said the new index will provide them with much needed data to evaluate performance of the financial sector and attract more investment.
Weekly share price movement (Jan. 17)
Vivo Energy Uganda Retail Manager, Issa Karanja (R) hands over kitchenware to winners of Shell Select campaign on Jan 19. (L-R) is Joseph Kakooza, Clare Namakula, and Noordine Umar. INDEPENDENT/JIMMY SIYA
Security BATU BOBU CENT DFCU EABL EBL JHL KA KCB NIC NMG NVL SBU UCHM UCL UMEME ALSI
Jan. 17 30000 112 1,579 681 8,401 1,491 17,650 582 1,579 12 4,024 515 29 141 29 400 --
Jan 11 30000 113 1,568 681 8,472 1,453 17,689 574 1,524 12 4,076 515 27 136 29 400 --
Jan 26 - Feb 01, 2018
Movement 00 -7.6 1.2 00 -0.8 2.6 -0.2 1.4 3.6 00 -1.2 00 7.4 -6.2 00 00 -29
COMMENT
By Urs Rohner
GDP should be corrected, not replaced Instead of seeking a new, disruptive framework, we should focus on making incremental changes
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espected economists have long pointed out that gross domestic product is an inadequate measure of economic development and social well-being, and thus should not be policymakers’ sole fixation. Yet we have not gotten any closer to finding a feasible alternative to GDP. One well-known shortcoming of GDP is that it disregards the value of housework, including care for children and elderly family members. More important, assigning a monetary value to such activities would not address a deeper flaw in GDP: its inability to reflect adequately the lived experience of individual members of society. Correcting for housework would inflate GDP, while making no real difference to living standards. And the women who make up a predominant share of people performing housework would continue to be treated as volunteers, rather than as genuine economic contributors. Another well-known flaw of GDP is that it does not account for value destruction, such as when countries mismanage their human capital by withholding education from certain demographic groups, or by depleting natural resources for immediate economic benefit. All told, GDP tends to measure assets imprecisely, and liabilities not at all. Still, while no international consensus on an alternative to GDP has emerged, there has been encouraging progress toward a more considered way of thinking about economic activity. In 1972, Yale University economists William Nordhaus and James Tobin proposed a new framework, the “measure of economic welfare” (MEW), to account for sundry unpaid activities. And, more recently, China established a “green development” index, which considers economic performance alongside various environmental factors. Moreover, public- and private-sector decision-makers now have far more tools for making sophisticated choices than they did in the past. On the investor side, demand for environmental, social, and governance data is rising steeply. And in the public sector, organisations such as the World Bank have adopted metrics other than GDP to assess quality of life, including life expectancy at birth and access to education. At the same time, the debate around gross national income has been gaining steam. Though it shares fundamental elements with GDP, GNI is more relevant to our globalised age, because it adjusts for income generated
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by foreign-owned corporations and foreign residents. Accordingly, in a country where foreign corporations own a significant share of manufacturing and other assets, GDP will be inflated, whereas GNI shows only income the country actually retains (see chart). Ireland is a prominent example of how GNI has been used to correct for distortions in GDP. In 2015, Ireland’s reported GDP increased by an eye-popping 26.3%. As an October 2016 OECD working paper noted, the episode raised serious questions about the “ability of the conceptual accounting framework used to define GDP to adequately reflect economic reality.” The OECD paper went on to conclude that GDP is not a reliable indicator of a country’s material well-being. In Ireland’s case, its
paced GDP growth whenever the domestic corporate-income-tax rate exceeded that of other OECD countries. In late December, this disconnect was addressed with the passage of the 2017 Tax Cuts and Jobs Act. By lowering the corporatetax rate to a globally competitive level and granting better terms for repatriating profits, the tax package is expected to shift corporate earnings back to the United States. As a result, the divergence between GDP and GNI will likely close in both the US and Ireland, where many major US corporations have been holding cash. Looking ahead, I would suggest that policymakers focus on three points. First, as demonstrated above, the relevant stakeholders are already addressing several of the flaws in
The Mismeasure of Prosperity
Deviation of GDP per capita from GNI per capita, select countries, 1990-2016 %
40
30
20
Ireland
10
USA Japan
0
Germany Haiti Russia Norway
-10
-20
-30 1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Source: Author's calculations
single year of astonishing GDP growth was due to multinational corporations “relocating” certain economic gains – namely, the returns on intellectual property – in their overall accounting. To address the growing disparity between actual economic development and reported GDP, the Irish Central Statistics Office introduced a modified version of GNI (known as GNI*) for 2016. The gap between GDP and GNI will likely close soon in other jurisdictions, too. In a recent working paper, Urooj Khan of Columbia Business School, Suresh Nallareddy of Duke University, and Ethan Rouen of Harvard Business School highlight a misalignment in “the growth in corporate profits and the overall US economy” between 1975 and 2013. They find that, during that period, average corporate-profit growth out-
GDP, which is encouraging. Second, publicand private-sector decision-makers now have a multitude of instruments available for better assessing the social and environmental ramifications of their actions. And, third, in business one must not let the perfect become the enemy of the good. We have not solved all of the problems associated with GDP, but we have come a long way in reducing many of its distortions. Instead of seeking a new, disruptive framework to replace current data and analytical techniques, we should focus on making thoughtful, incremental changes to the existing system. Urs Rohner is Chairman of the Board of Credit Suisse. Copyright: Project Syndicate, 2018.
COMMENT
By Ladislas Ngendahimana
Kagame at African Union Hope is not lost from the man whose vision and experience helped rebuild Rwanda from the ashes
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ifty four years after her creation, the African Union is still struggling for her internal organisation and functioning. And the global Pan-African Movement which envisions driving the dignity and unity amongst Africans remains a non-operational framework. It is under such turmoil that President Paul Kagame takes the annual rotational leadership of the African Union for 2018. Analysts are busy in predicting the future of the African Union. Looking through the publications and media reports, the organisation is far from reaching the prosperous and peaceful Africa, free from wars and armed conflicts by 2020. The future of Africa shall depend mainly on its citizens. As of now, all African countries are independent. Every leader is a product of her/his society. Our leaders are African citizens. I don’t wish to look alarmist, but it looks like some Africans –not to say “many”- don’t want a strong Africa and African Union. A few days ago, a leader of a sister country reportedly said that; Africa is a “shithole” continent with “shithole” countries. I have been waiting for a strong reaction from African leaders and citizens. What transpired was that only the African Union Commission and few governments expressed their dissatisfaction. Others kept quiet as if nothing happened. I think such people and leaders don’t wish to see themselves at the high table with dignity. We should all agree that democracy and government institutions can only work if the citizens want them to deliver. Irresponsible citizens would only create non-sensitive leaders. Though “corruption is not African”, as President Kagame once said, power struggles, corruption, and political opportunism are critical in paralysing the performance of the African Union. This year, Africa shall be dominated by elections. From experience, ill-wishers are on standby to use their proxies to destabilise the concerned countries. Elections are scheduled in all corners across the Continent. Mauritius and Cameroun shall hold their presidential elections.
The youth remain a critical success factor, but they need to be nurtured and inspired
Mali, Sierra Leone, Zimbabwe, South Sudan, Madagascar and Democratic Republic of Congo shall hold their general elections, that is; presidential and legislative. Chad, Djibouti, Guinea Bissau, Gabon, Togo, Guinea, Sao Tome and Principe, Rwanda, Swaziland and Mauritania shall hold their legislative elections. Africans should all learn from the past and prepare better and peaceful, transparent and democratic elections. If Africans really need a prosperous continent, they should work together towards regional and continental integration to foster trade and investments. It can only be achieved with leadership, governance and institutions that fit and work for Africa. Can we stand firmly, as Africans, and say that we are safe? Looking at the current situation in many countries that are preparing for elections, I would respond in the negative. There are some leaders in comfort zones, who don’t care about the next generations. And, to be honest, Africa’s dignity shall never be offered as bread on the table. We need to actively struggle for it, and it requires responsibility, determination, hard work, and risk taking.
The fact that Africa suffered from slavery is not enough to claim dignity as a gift. President Kagame will have heavy tasks; including integration and migration, conflicts and wars, revitalisation of peace efforts in many countries, in addition to overseeing the African Union institutional reforms. More tasks and requests shall keep flowing on him from Africa and beyond, as we can all foresee, considering the volatile situation in several countries. Without a solid social contract with firm, stable and predictable finances from Africans themselves, the African Union –which should address Africa’s challenges - remains all but a dependent and financially handcuffed institution. But all is not of chaos, despair, and crisis. Hope is not lost. At least only twenty African countries have embarked on implementing the 0.2 percent levy on eligible imports to finance the African Union, though the majority’s resistance remains a counterproductive challenge. Another key challenge is about free movement of people, because a visa is still required for many intra-African movements, and this remains critical to trade and investments. Africans should think big to open their borders to Africans. The youth remain a critical success factor, but they need to be nurtured and inspired. The future is in their hands and the Pan-African Movement would serve the purpose but only with support from Heads of State. Africans’ hope lies in our leaders’ hands. Kagame’s vision and experience helped rebuild Rwanda from the ashes of genocide against Tutsi in 1994. I pray other Africans can join his efforts in shaping a prosperous and dignified Continent. Africa should never be considered a “shithole”. Africans deserve better at the high table, and it is time for renaissance. Team work and unity of purpose are required. Hope is not lost. The author is a Political Analyst and a member of the Pan-African Movement, Rwanda Chapter Twitter @NLadislas Jan 26 - Feb 01, 2018
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COMMENT
By Giulio Boccaletti
Water and health management Degradation of freshwater ecosystems often brings disease, water protection improves health outcomes
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ith climate change accelerating and its effects exacerbating other geopolitical and development crises, the role of environmental protection in preserving and improving human wellbeing has become starkly apparent. This recognition lies at the heart of the concept of “planetary health,” which focuses on the health of human civilization and the condition of the natural systems on which it depends. The concept’s logic is simple: if we try to deliver better health to a growing population, without regard for the health and security of our natural resources, we will not just struggle to make new strides; we will reverse the progress already made. Where things get complicated is in applying the concept, particularly when addressing the nexus of water services, health, and ecosystem integrity. Since at least 1854, when John Snow discovered that cholera was spread through contaminated water supplies in central London, humans have understood that polluted water is bad for our health. The degradation of freshwater ecosystems often brings disease, just as the protection or strengthening of such ecosystems improves health outcomes. But, while it is now well understood that progress in one area improves outcomes in another, such co-beneficial dynamics often are insufficient to spur investment in both areas. For example, investing to protect a watershed can also protect biodiversity and improve water quality in associated rivers, thereby benefiting human health. But if the goal is explicitly to improve human health, it might be more cost-effective simply to invest in a water-treatment plant. A more compelling dynamic is complementarity: when investment in one area increases the returns on investment in other areas. In this scenario, investments in protecting a watershed would aim not just to produce returns directly, but also to boost the returns of simultaneous investments in human health. Complementarity produces mutually reinforcing dynamics that improve outcomes across the board. A well-functioning water sector already attempts to balance complementary inter-
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ventions. Indeed, such a system amounts to a multidisciplinary triumph of human ingenuity and cooperation – involving engineering, hydrology, governance, and urban planning – with far-reaching complementary impacts on both human health and economic development. In 1933, through the Tennessee Valley Authority Act, the United States established an agency whose purpose was to build hydroelectric dams on the Tennessee River. That effort benefited industry, agriculture, flood control, and conservation throughout the Tennessee Valley watershed, until then one of the country’s most disadvantaged regions. Since then, governments worldwide have recognized the potential of water infrastructure to complement other economic and social policies, including those intended to improve health outcomes. It is no coincidence that one of the World Bank’s largest lending portfolios – $35 billion worth of investments – comprises water projects. But understanding the potential of complementarity is just the first step. To maximize results, we must design a coherent strategy that takes full advantage of the dynamic, at the lowest possible cost. The question is whether there is an optimal mix of environmental protection and direct health interventions on which policymakers can rely to maximize investment returns for both. A recent analysis suggests that, in rural areas, a 30% increase in upstream tree cover produces a 4% reduction in the probability of diarrheal disease in children – a result comparable to investing in an improved sanitation facility. But, if that is true, we have yet to determine at what point reforestation becomes a better investment than improving sanitation, let alone increases the returns of other health interventions by the highest possible amount. Another study found that an estimated 42% of the global malaria burden, including a half-million deaths annually, could be eliminated through policies focused on issues like land use, deforestation, water resource management, and settlement siting. But the study didn’t cover the potential benefits of employing insecticide-treated nets as a tool for fighting malaria, ruling
out a comparison of the two investments’ returns. Worldwide, around 40% of cities’ source watersheds show high to moderate levels of degradation. Sediment from agricultural and other sources increases the cost of water treatment, while loss of natural vegetation and land degradation can change waterflow patterns. All of this can adversely affect supply, thereby increasing the need to store water in containers – such as drums, tanks, and concrete jars – that serve as mosquito larval habitats. Can we show that ecological restoration of the watershed could do more than just insecticides or mosquito nets to support efforts to reduce malaria (and dengue) in cities? In all of these cases, finding the best option requires knowing not just the relative contribution of different interventions, but understanding their complementarity. In a world of limited resources, policymakers must prioritize their investments, including by differentiating the necessary from the desirable. To that end, finding ways to identify and maximize complementarity is vital. Some 2.1 billion people worldwide lack access to safe, readily available water at home, and more than twice as many – a whopping 4.5 billion – lack safely managed sanitation, severely undermining health outcomes and fueling river pollution. With a growing share of the world’s population – including many of the same people – feeling the effects of environmental degradation and climate change firsthand, finding solutions that simultaneously advance environmental protection, water provision, and health could not be more important. Global health and conservation professionals must cooperate more closely to find those solutions – and convince policymakers to pursue them. Giulio Boccaletti is Chief Strategy Officer and Global Managing Director for Water at The Nature Conservancy. Copyright: Project Syndicate, 2018.
Why is it so difficult for scientists to discover new drugs? Over-reliance on and misuse of antibiotics has led to warnings of a future without effective medicines By Agencies
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t’s a tale of scientific discovery taught the world over: the serendipitous find of a mould that revolutionised modern medicine. Almost 90 years ago, Alexander Fleming returned from holiday to find Penicillium on Petri dishes left in his basement laboratory at St Mary’s Hospital in London. By the 1950s, the golden age of antibiotic discovery, an array of new medicines was being found. Today, scientists are searching for a new breakthrough, testing microbes in sources as diverse as soil, caves and Komodo dragon blood, as well as developing new, lab-made synthetic drugs. Yet despite these remarkable advances, we are running out of effective antibiotics the drugs that fight infection and are essential for everything from organ transplants to the treatment of food poisoning. Deadly bacteria resistant to penicillin, or the more than 100 different antibiotics since developed, are already killing 700,000
people every year. Unchecked, the global toll could rise to 10 million a year by 2050. If the problem is so serious, why, in this age of incredible medical and scientific endeavour and advance, is it so difficult to get the new antibiotics the world so desperately needs?
Racing the superbugs
The answer lies partly in scientific challenge and partly in the broken economy of research and development work. Perhaps the less well known part of Fleming’s story is the long period of research and collaboration which followed, before, in the 1940s, Penicillium became the world’s first antibiotic. Or that Fleming himself cautioned from the earliest days that bacteria could become resistant to drugs. As a patient, antibiotics can seem such a simple treatment for infection, but the pills have a complex relationship with the very bacteria they are designed to destroy. All microorganisms evolve and those that develop defences against antibiotics will
survive, while the defenceless will be killed. The more antibiotics we use, the faster the process of bacteria developing resistance becomes. The result of misuse and overuse, in human and animal health, is a continual race to stay ahead of the superbugs.
Years of testing
It’s easy to find chemicals that kill bacteria. The challenge is that it’s much more difficult to discover and develop substances that are not also toxic to humans. The path from discovery to clinically approved medicine is necessarily long and the failure rate is high. The process starts with basic research to identify organisms which produce antibiotic substances. Thousands of possibilities will be screened - a process which in itself can take years. Scientists look at different chemicals, combinations of chemicals and ways to weaken bacteria. Some might try to attack the cell wall; others interfere with the way the bacterial cell functions, or with its metabolism. When a candidate is found this must be tested on known infectious bacteria. Then, if the results are promising, it will be tested for its possible toxicity to humans and must be produced at scale. Only then can the years of clinical trials begin. In total it takes around 10 to 20 years from discovery to medicine. No new discoveries Of course, with complexity and uncertainty comes cost. This is where the broken economy comes into play. Antibiotics are not only complex to develop, the most innovative new products also cannot be sold freely. Jan 26 - Feb 01, 2018
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health Instead, they must be put on the shelf in reserve for serious cases - as is the case with colistin, the “drug of last resort”. This doesn’t present an appealing investment opportunity, and over the past 30 years pharmaceutical companies have significantly decreased their work developing new antibacterial therapies. No new classes of antibiotics have been invented for decades. In fact, all the antibiotics brought to the market in the past 30 years have been variations on existing drugs discovered by 1984. Most worryingly, it was as long ago as 1962 that the last new class of antibiotics to treat those infected by the most resistant gram-negative superbugs was discovered. These include multi drugresistant bacteria which can cause severe and often deadly bloodstream infections and pneumonia. They pose a particular threat in hospitals, nursing homes and for patients treated with devices such as ventilators and catheters. Other priorities include increasingly drug-resistant bacteria that cause more common diseases such as gonorrhoea and food poisoning caused by salmonella. In recent years, as awareness of drug-resistant infections has increased and politicians have taken heed of the warnings long given by doctors and scientists, the public and private sectors have begun to work together to find solutions. As of May 2017, a total of 51 antibiotics were in the clinical pipeline around a third targeting priority pathogens, 12 families of bacteria seen as posing the greatest threat to human health. But only a small number are innovative products - those not based on existing classes of antibiotics. New drugs are vital but they are only part of the solution. 34
Not just luck We also need to explore the potential for vaccines to protect against infection in the first place. And better, more accurate diagnosis of infections could help doctors know as quickly as possible the best and most appropriate treatments. We also need a better understanding of where drug-resistant infections are spreading, not just in people, but also in animals and the environment. Improving hygiene in hospitals, clinics and communities across the world would help stop infection taking hold in the first place. If we are to succeed in getting and staying ahead of superbugs we cannot rely on Fleming’s luck in 1928. More needs to be done to ensure industry and governments work together to test promising treatments and bring them to market. Perhaps most importantly of all, we must give this miraculous and marvellous medicine the respect it deserves. Antibiotics, old and new, are a valuable resource, to be used only when necessary for protecting and improving health. About this piece This analysis piece was commissioned by the BBC from an expert working for an outside organisation.
The overuse of antibiotics A fifth of antibiotic
prescriptions are unnecessary, Public Health England says Coughs or bronchitis may take three weeks to clear on their own, but antibiotics reduce that by just one to two days, it says Thousands of people die each year as a result of drug-resistant infections Worldwide, if unaddressed, drug-resistant infections could kill more people than cancer by 2050 Animals consume a large proportion of antibiotics - as much as 80% in the US
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A type of shallot used in Iranian cooking could help “reverse the tide” of drug-resistant TB, researchers found
Onion could help fight TB antibiotic resistance
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type of onion called the Persian Shallot could help the fight against antibiotic resistance in cases of tuberculosis, a study has suggested. Researchers believe the antibacterial properties extracted from the Persian shallot could increase the effects of existing antibiotic treatment. They said this could help “reverse the tide” of drug-resistant TB, which infected 490,000 people in 2016. But they said the research was still in its early stages and clinical trials would need to follow. In the ongoing study, led by Birkbeck, University of London and University College London, the research team conducted tests on four different molecules from the shallots, which are a staple of Iranian cooking. They found all four showed a significant reduction in the presence of the bacteria in the multidrug-resistant TB - the most promising candidate of which inhibited growth of the isolated TB cells by more than 99.9%. The team concluded that the chemical compounds could be used alongside existing antibiotics to combat strains of TB which have developed resistance to antibacterial drugs. Dr Sanjib Bhakta, one of the study’s authors, from Birkbeck’s department of biological sciences, said: “Despite a concerted global effort to prevent the spread of tuberculosis, approximately 10 million new cases and two mil-
lion deaths were reported in 2016. “In searching for new antibacterials, we tend to focus on molecules that are potent enough to be developed commercially as new drug entities by themselves. “However, in this study we show that by inhibiting the key intrinsic resistance properties of the TB, one could increase the effects of existing antibiotic treatment and reverse the tide of already existing drug resistance.” Prof Simon Gibbons, another of the authors, and head of UCL’s department of pharmaceutical and biological chemistry, said: “Natural products from plants and microbes have enormous potential as a source of new antibiotics. “Nature is an amazingly creative chemist and it is likely that plants such as the Persian shallot produce these chemicals as a defence against microbes in their environment.” In October, England’s chief medical officer, Prof Dame Sally Davies, urged global leaders to tackle the growing threat of antibiotic resistance. Medical experts say these drugs are being used too much, and that 25,000 people die across Europe each year because of drug-resistant infections. Researchers said they hope the molecules, which were tested in a laboratory, could be combined with existing antibiotics to form new anti-TB drugs. The research is published in the journal Scientific Reports.
ART | BOOKS | SOCIETY | TRAVEL | CULTURE
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By Dominic Muwanguzi he East Africa Art Biennale (EASTAFAB) is finally coming to Kampala. It’s happening in February under the theme, ‘Moving art across borders’. Biennales (Italian for `every other year’), are typically large international art exhibitions held in most cities around the world. The EASTAFAB is based in Dares-Salaam where it was first held in 2003. When the Fifth EASTAFAB in 2012 moved across East Africa but did not take place in Kampala, Ugandan organisers conjured up an alternative art exhibition; KLA ART 012. After two seasons, however, it folded and local artists felt left with limited prospects of being noticed by an international audience. But others saw opportunity and swiftly moved to give birth to the Kampala Art Biennale that has since invited artists from the region and beyond to Kampala to produce works that push the boundaries of art making. Also known loosely as the Art Safari, EASTAFAB will travel to Kampala by truck, after staging in regional cities like Dar-esSalaam, Arusha, and Nairobi. The idea is for the Biennale to promote cultural integration between East African countries through art.
Big is big Art Safari finally comes to Kampala
Since its inception in 2003, the multidisciplinary EASTAFAB has been a podium for both upcoming and established artists to showcase art to diverse audiences across the region. As part of this benefit of cultural exchange, in subsequent years, a series of exhibitions have been organised across the borders of these countries. The Tigatinga exhibition involving Tanzanian modernist and contemporary artists that was mounted at AKA gallery in Kampala in March 2017 is an example. Conversely, Ugandan artists like Anwar Sadat Nakibinge, Jjuuko Hood, Collin Sekajungo and Ismael Kateregga have held either solo or group exhibitions in Nairobi, Dar-es-Salaam, and Kigali.
In an attempt to build links between regional artists and inspire cultural exchange, the biennale also highlights the vibrancy of the East Africa art scene. Through its nature; accepting multi-disciplinary artworks like painting, sculpture, video art, digital art and installations, the festival demands that artists are creative and innovative. The resultant diverse exploration in technique and style positions artists from the region in the global art world and the stereotype type “African art” being primitive art debunked. Participating artists and organisations involved have an opportunity to broaden their knowledge on art making and management which sustains the art scene. The EASTAFAB is a non-profit association registered by the Tanzania National Arts Council (BASATA). The East Africa Biennale will take place in Kampala from Feb. 02 to 08at AKA gallery. It is supported by the Goethe Zentrum Kampala, Alliance Francaise Kampala and AKA gallery. Ugandan artists who have participated previously in the East Africa Art Biennale include, Eria Sane Nsubuga, Ahmed Abushariaa, Ronex and Henry Mzili Mujunga.
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‘Selfieccino’ - self-portraits in froth! A cafe in London is taking barista art to a new level by giving customers the chance to sip on their own self-portraits. The Tea Terrace has become Europe’s first location to deliver the “Selfieccino,” which features an image of customers’ faces on the frothy topping of their drinks. Patrons send their headshots via an online messaging app to the barista and are given the choice of either a cappuccino or hot chocolate as their canvas.
The image is uploaded to the “Cino” machine while the drink is placed in position. The picture is then scanned and reproduced onto the froth using a flavourless food colouring. The process takes around four minutes before an image is presented on the froth, ready to be photographed and sent to all points via social media before drinking. It costs around 5.75 pounds (Approx. Shs28 million).
Boy sues mum for posting photos on Facebook An unnamed 16 year-old Italian boy has sued his mother to court for constantly posting photos of him on Facebook without his consent. The boy claimed that his mother’s actions had such a serious impact on his social life that he was
Couple has sex once a year – for very odd reason When they were dating, the unnamed man had some issues about the woman – she bathed only once a week – when they had sex. Nonetheless, the couple from the Taiwanese city of New Taipei married. But the questionable hygiene of Lin, the woman, worsened after their wedding. Her weekly showers became monthly showers, then twice a year. It was when she started bathing only once a year that he just couldn’t take it anymore. It meant that they only had sex once a year. The couple does not have children in their decade-long marriage. The man has petitioned court for divorce claiming psychological torture due to his ex-wife’s hygiene habits, or lack thereof.
Pope wades into airplane wedding uproar Pope Francis recently grabbed headlines by pronouncing two flight attendants man and wife while flying 36,000 feet over Chile. After serving breakfast, Paula Podest and Carlos Ciuffardi approached the Pope for a blessing. They told him that they had been married civilly in 2010, but that their plans for a church wedding fell through when an earthquake hit. The pope immediately proposed that he marry the couple right there. But the conservative Catholic commentariat has questioned the legitimacy
Sunion: an onion to chop without tears If you’ve ever had to chop an onion, you probably know that it’s one of the most annoying cooking experiences. It just fills your eyes with tears and, apart from wearing goggles, there’s not too much you can do about it. Scientists have apparently come up with a tearless onion. Called the “Sunion”, it is a sweet, mild-tasting onion that also doesn’t leave that strong, pungent aftertaste. 36
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considering transferring to a high-school in the United States so he could “start over”. The judge in Rome made a historical decision, in favor of the teen, and ordering the mother to delete all references of him from her social media account.
of the impromptu sacrament and warned it could cheapen the church’s marriage preparation down the line. “Do you know what’s a ‘marriage’ ripe for annulment?” tweeted the tradi-
tionalist blog Rorate Caeli. “One celebrated apparently on a whim in an airplane whose celebrant cannot even be sure if parties are validly baptised.”
Man ruptures throat by stifling a sneeze Stifling a sneeze by clamping your nose and mouth shut can cause serious physical damage, doctors are warning. Medics in Leicester, UK, treated a 34-year-old man who ruptured his throat while trying to stop a high-force sneeze. With nowhere to escape, the pressure ripped through the soft tissue, and although rare and unusual, they say others should be aware of the danger.
The man had to be fed by a tube for the next seven days to allow time for the tissues to heal.Trapping a sneeze could also damage the ears or even rupture a brain aneurysm, they warn in journal BMJ Case Reports. Sneezes can spread diseases, so although it is good to “let them out”, make sure you catch them in a tissue, say experts.
6 coolest gadgets
for your ride in 2018 Wireless smartphone charger
Seat organiser
utomakers are beginning to include wireless smartphone chargers, either standard or optional, in their newest models. However, you don’t have to upgrade to a new set of wheels to get one. Ventev’s Wireless Pro replaces the traditional (and often painfully slow) USB charger with a device that delivers fast, wireless charging while doubling as a cradle. It’s three times faster than a standard wireless charger.
Now that you’ve amassed an arsenal of useful gadgets, you’ll need a place to stow them. The High Road Car Seat Organiser is a solid storage option for families and hoarders alike. The unit is made of durable mesh and polyester, and comes with an array of compartments and flexible pockets. The adjustable headrest strap also easily fastens to virtually any seat back, allowing you to keep all of your belongings within arm’s reach.
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Bluetooth key tracker Our forgetfulness costs us thousands of dollars over the course of our lifetimes. Unsurprisingly, one of the most commonly misplaced items are our car keys. Thankfully, the Bluetooth-equipped Tile Mate easily slides onto a keychain, allowing you to track the whereabouts of your keys using an accompanying mobile app — even if they’re locked inside your car. Tile is one of the best Bluetooth trackers on the market, and it’s compatible with several infotainment systems.
RearVision backup camera The Pearl’s RearVision backup camera ensures you’ll never again bring your car home with a dent — at least not one you’re directly responsible for. Easy and quick to install, it consists of a small camera integrated into a frame you need to mount over your rear license plate. It relies on Bluetooth and Wi-Fi to transfer live footage straight to your smartphone. Note the RearVision doesn’t work with cars built before 1996.
The Stinger
Self-powered jumpers
The Stinger is a handy device to have at your disposal after an accident. If your car windows or doors are jammed, the Stinger is designed to shatter the dashboard or car window, thus allowing you to quickly exit your vehicle. The device also incorporates a slim blade on the backside, which allows you to slice through a jammed seat belt.
Jumper cables are great if you have another vehicle to give you a friendly jolt. However, if you’re in a more isolated area, jumper cables are essentially useless. The self-powered Bestek Jump Starter is ideal for this exact scenario, and it features two USB ports for your mobile devices as well as a flashlight.
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Profile
Dennis Katongole’s passion for radio and TV By Agnes E Nantaba
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ennis Katongole alias Omutongole Mubatongole has for over a decade been a popular name on most local radio and TV stations; especially Radio Simba, Beat FM, Bukedde TV and radio, Record and Delta TV in Kampala. He says he believes he was created and made for the media industry. He loves and enjoys doing. His media personality career dates back in 2001 during his Senior Six long holiday when he majestically walked into the studios of Radio Simba seeking a job as a presenter. “I wanted to work with Capital as an English station because I thought I was really fluent with English only to be told that my English was lacking for a station like that,” he says. He got the gig - as an all-round presenter. This meant sitting in for presenters who were either away on leave or had urgent errands to attend to. It also meant putting in long rehearsals for a job he had no experience at but only passion. Even when he got a permanent show of his own to host, pressure persisted to attract a bigger audience. For almost five years, Katongole kept in there as a darling for many listeners hosting the Early Morning Show until he moved. He says the decision to leave Radio Simba was tough. It had molded and trained him into who he is. “My breakthrough in life is acknowledged to Radio Simba who took me on when I was nothing,” says Katongole. “I am also grateful because I have been on the airwaves for more than a decade but the audience still yearns for more since it is not easy to maintain relevance in Uganda’s media industry”. In 2006, he joined Beat FM and later Bukedde FM. In 2011, he returned to Beat FM where he still hosts the breakfast show dubbed ‘Sisimuka’. He is also a programmes director for the station. In a bid to grow his audience and retain relevance, Katongole sought a stint on TV. He started at Record 38
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TV in 2007 with a political talkshow called ‘Moment of Truth’. “I usually want to start with new stations because they offer wide opportunities and challenge me to come up with new programmes,” said Katongole. After three years, he switched to Bukedde TV which was also a new station then for a musical show until he moved on to Delta TV where he currently hosts a late night music show. Katongole has also dabble in elective politics but has so far not succeeded. Katongole was born 38 years ago in Kampala where him and three others stayed under the custodian of a single mother, Justine Mutegyereize. She would later pass on two weeks to Katongole sitting his PLE. He explains this as one of the toughest experiences in life having been so close to her. It also meant transitioning from city to village life staying with a rural father, John Kakooza (RIP) and siblings. He went to Mengo Primary School, Kitatya Secondary School in Kayunga and Yale High School. He later did a diploma in Journalism and degree in Mass Communication a Kampala International University. For his long service in the media, Katongole wishes to be remembered as a very strong and influential media personality who shook the airwaves.
Q&A
Dennis Katongole’s Liteside Any three things we don’t know about you? often strive to be an honest person. Some people have been made to believe that I am a womaniser but I end up surprising them. I am a twoin-one person: I am exhibit a different character in the media and when it comes to my real life I am a very quiet and family person.
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What is your idea of perfect happiness? Family time is my happiness What is your greatest fear? Just thinking about the day I will wake up without a job makes me freak. It is the very reason I work so hard and treasure whatever earns me a penny. What is the trait you most deplore in yourself? I can’t explain how it happens but I end up being an imperfect time keeper. It bothers me a lot because I put in a lot of effort to manage time. What is the trait you most deplore in others? I strive to tolerate people of different characters but drug addicts don’t work for me. Which living person do you most admire? I admire someone who has been in the media industry for sometime ad moved on to a higher level. Someone like Kato Lubwama has taken on new and greater challenges. My goal is to retire from radio at some point in time and take on new challenges like representing my people in parliament. What is your greatest extravagance? I spend on someone I love dearly and that can be my children.
What is the greatest thing you have ever done? I have done a lot on radio and being there for many years is not something small. We have worked with some people who have worn out after just five years but I am so grateful to God that I have kept in there with an audience and of relevance. What is your current state of mind? I am happy. What do you consider the most overrated virtue? It has to do with exorbitant and unnecessary spending by many Ugandans. Some people even go out of their way to borrow and spend on useless things. What does being powerful mean to you? Money is power so anyone who has the money has the power. On what occasion do you lie? I strive to be an honest person but end up throwing in a lie or two. What do you most dislike about your appearance? I am very happy the way I was created but also with my current appearance. I am not even bothered by the little flesh because I wouldn’t want to grow any bigger. Which living person do you most despise? There is someone I hate so much but I can’t disclose him. He is too selfish to the extent that he never wishes good for others. What is the quality you most like in a man? Respect of self and others. What is the quality you most
like in a woman? Being caring and trustworthy. What or who is the greatest love of your life I love my son, Dennis Delmar Sserugo. When and where were you happiest Every time I put my mind and hands to something and succeed. Which talent would you most like to have? There is one more thing I would wish to do in my entire career and it has to do with acting a movie in Hollywood. I don’t know how I will do it but I believe that I can make it. If you could change one thing about yourself, what would it be? Absolutely nothing. What do you consider your greatest achievement? I have managed to build a brand out of myself something that cannot be underrated. It is that brand that makes many people believe that I can be their representative politically. Other achievements are personal. If you were to die and come back as a person or a thing, what would it be? I am okay coming back the same person and doing the same things. Where would you most like to live? Uganda is the best country to live in with the best climate. It is only after travelling to other countries that you can treasure the gold in our talent. What is your most treasured possession? Nothing equates to my good
health and voice. What is your favorite occupation? Being a media personality is something I do out of love. It is something that fulfils me. What do you most value in your friends? I value friendship that gives back to me. Some friends only work to take away from others so I value those who reciprocate. Who are your favorite writers? I am not an ardent reader so I can’t point to any writer. Who is your hero of fiction? I am not attached to a character. I am taken by action movies. Which historical figure do you most identify with? One gentleman who worked so hard in the media industry was Mulindwa Muwonge. Many media personalities looked up to him for his hard work. I also loved the way Nelson Mandela did his thing which is the reason he is still loved even when he is gone. Who are your heroes in real life? My number one hero was my father because I looked up to him for so many things. What is your greatest regret? There are things that I wish to have done; for instance I was very good at soccer which makes me regret to not having taken that path. I am however grateful where I am. How would you like to die? I just want to sleep away. What is your motto? God first in the morning.
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Global comment
By Simplice A. Asongu
Liberal democracy can wait Food, shelter, health, and good sanitation should be more relevant for Africans than the vote
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frica’s policymakers understand that strong economic and political leadership is essential to growth and stability. For years, African economies have fared better than expected, owing to a commitment to improving governance. The question now is how to sustain the momentum. Current strategies do not provide an adequate answer. Although leaders at a recent African Economic Conference in Addis Ababa, Ethiopia, committed to keeping governance reforms at the top of Africa’s agenda, they offered no blueprint. From my perspective, this void presents an opportunity to consider new governance paradigms, including those that borrow from two commonly discussed models: the “Washington Consensus” and the “Beijing Model.” Development practitioners have long debated which model offers the best framework for reform. Put simply, “governance” refers to a dynamic framework of rules, structures, and processes that help a government manage its economic, political, and administrative affairs. But which principles a government focuses on varies by approach. The model championed by the West places a premium on human rights and democracy, while the one advocated by China is more concerned with political stability and economic growth. Since the election of President Donald Trump, the United States, which remains one of Africa’s top donors, has focused more on the principles China favors – like political stability, trade, and counterterrorism – than on human rights. The rationale is that the Beijing Model is better for Africa in the short and medium term. And, while it might not be popular to admit, Trump has a point. Simply put, food, shelter, health, and good sanitation are more relevant for most Africans than the right to vote. Moreover, only a moderately wealthy population, with a healthy middle class, can adequately demand the rights that democracy provides. Paradoxically, the fastest way to build a strong middle class in Africa would be to move toward the hierarchy of principles that China’s
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model promotes. For Africa to reorient its governance approach, and embrace a post-Washington Consensus, its leaders must commit to improving institutional effectiveness and economic management. The first set of reforms would involve establishing clear lines of sovereignty with international partners. Africa’s relationship with Western donors, for example, has historically placed individual rights over national rights. But in my view, individual rights should not supersede sovereign ones. Punishing entire countries for laws that affect a minority is counterproductive. An example of such collective punishment occurred in Uganda in 2014, when the World Bank froze some $90 million in loans following the government’s enactment of legislation criminalising homosexuality. As a Ugandan government spokesman said at the time, the bank “should not blackmail its members” to adopt Western values. Yet, when governance models are judged solely through the lens of the Washington Consensus, there is very little alternative. Along the same lines, the second set of reforms pertains to prioritising economic rights over political rights. For example,
An example of such collective punishment occurred in Uganda in 2014, when the World Bank froze some $90 million
politicians who manage an economy well should not be subject to term limits. Neither Singapore nor China is a democracy; but leaders in both countries have used their political power to improve living standards. Forcing leaders to step down in the middle of economic reforms seems counterproductive. These are not far-fetched ideas. Today, leaders in Rwanda, which is widely considered an African success story, have improved stability by moving away from the Washington Consensus approach to governance. Politically, Rwanda is strong, disciplined, and organised, but it is not liberal. The landslide reelection of President Paul Kagame last year had more to do with power than democracy. Although Kagame remains popular, his government was criticised for stifling free speech and human rights in the run-up to the vote. The conclusion I draw is not that human rights don’t matter, but that political discipline and imperfect forms of democracy are acceptable if the tradeoff is sustained progress in economic and institutional governance. We should be intellectually honest and call a spade a spade. Rwandans should not be ashamed to value economic and administrative strength more than fair elections. The question for other African states seeking to reform their governance models, then, is how much of Rwanda’s approach to emulate. Neither the Washington Consensus nor the Beijing Model has all the answers. But, as Rwanda has demonstrated, if discipline and strong leadership are improving lives and delivering public goods, perhaps liberal democracy should be a long-term priority. Simplice A. Asongu is Lead Economist in the research department of the African Governance and Development Institute. Copyright: Project Syndicate, 2018. www.project-syndicate.org
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