THE INDEPENDENT Issue 506

News analysis $3.55 billion pipeline deal

Odinga swears in as ‘People’s President

Health

Business

‘Panty Condom’ hits Ugandan market

Rough terrain for Pioneer Easy Bus

Issue No. 506 Feb 02 - 08, 2018

Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

lebrating Ce

Years

The fall of Kayihura's men How the war between Kayihura and CMI crashed Boda Boda 2010

www.independent.co.ug

Happy 32nd NRM Anniversary “The NRM Government is committed to improving electricity generation and supply to support industrialisation as well as ensuring universal access to affordable, reliable and modern energy. We have already made commitments at regional and international level to improve Dr. Dr. Eng. Eng. Harrison Harrison E. E. MUTIKANGA MUTIKANGA H.E H.EYoweri Yoweri K. K. MUSEVENI MUSEVENI Chief Chief Executive Executive Officer Officer Preseident Preseident of of the the Republic Republic of of Uganda Uganda

electricity generation and sharing among partner states through the Eastern Africa Power Pool (EAPP) in a bid to rationalise the generation and use of modern energy.” - Page 236, NRM Manifesto 2016 2021

183MW 183MW Isimba Isimba Hydro Hydro Power Power Project Project (Commissioning (Commissioning date: date:August, August, 2018) 2018) 600MW 600MW Karuma Karuma Hydro Hydro Power Power Project Project (Commissioning (Commissioning date: date: December, December, 2018) 2018)

The Board, Management and Staff of UEGCL congratulates H.E Yoweri Kaguta MUSEVENI, President of the Republic of Uganda, NRM government and the People of Uganda on this occasion to mark 32 years of NRM. We also commit to staying true to our Mission of sustainably generating reliable, quality and affordable electricity for socio-economic development. Generating for Generations.

VISION To be one of the leading power producers in the Great Lakes Region MISSION To sustainably generate reliable, quality and affordable electricity for socio-economic development.

Uganda Uganda Electricity Electricity Generation Generation Company Company Limited, Limited, Block Block C, C,Victoria Victoria Office Office Park. Park. Plot Plot 6-9, 6-9, Okot Okot Kiwanuka Kiwanuka Close, Close, Bukoto. Bukoto. P.O P.O Box Box 75831, 75831, Kampala, Kampala, Uganda Uganda Tel: Tel: +256 +256 312 312 372 372 165 165 Fax: Fax: +256 +256 414 414 251 251 057 057 Email: Email: [email protected] [email protected] UEGCL UEGCL

UegclOfficial UegclOfficial

www.uegcl.com www.uegcl.com

INBOX

Issue No. 506 Feb 02 - 08, 2018

The Week

The Last Word

Analysis

4|Shs100bn industrial skilling centre launched

Losing my innocence: How my hubris to become president of Uganda pulled me from the trees of utopia to the hard rock of reality

14|$3.55 billion pipeline deal: Contractor, gov’t offer pointers, urge suppliers to get ready

4|Police open fresh investigation into former Crane Bank staff

4|US, AU pile pressure on South Sudan leaders

16|Uganda’s faltering fight against poverty

STRATEGY & EDITORIAL DIRECTOR: Andrew M. Mwenda MANAGING EDITOR: Joseph Were INVESTIGATIONS EDITOR: Haggai Matsiko BUSINESS EDITOR: Isaac Khisa PHOTOGRAPHER: Jimmy Siya

Business 21|Rough terrain for Pioneer Easy Bus: Creditor plan to auction buses to recover Shs 151 mn debt

24|Uganda could hire expatriates for oil jobs: Kigumba Petroleum Institute has trained just 133 locals with certificates and diplomas in oil and gas

Arts & Culture 43|Top five artists on the Kampala Art Scene

43|Kia reveals upgraded K5 sedan

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: [email protected] | [email protected] [email protected] | Website: www.independent.co.ug

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Feb 02 - 08, 2018

Offline

Allen Kagina, the Executive Director UNRA, briefs the press on Jan. 24 about UNRA’s 2018 plans on road maintenance and development programs for road networks. She said a total of 27 road projects (1,964km) have their designs ready and waiting allocation of funds in this FY.   INDEPENDENT/

“Please continue and do not speak back at me. In case you are used to speaking back at Africans, think again.”Justice Catherine Bamugemereire, chair of the land commission inquiry to Parful Patel, Mbale businessman during a hearing

JIMMY SIYA

Charles Wana Etyem, (L) Chairman Makerere University Council talks to Stephanie Rivoal, the French Ambassador to Uganda during the grand opening of Campus France Uganda academic programs at Makerere University on Jan 30.   INDEPENDENT/

“I love [Donald] Trump because he speaks to Africans frankly”President Museveni

JIMMY SIYA

President Museveni, being welcomed by Elly Karuhanga, (2nd) chairman Uganda Chamber of Mines and Petroleum during a forum on skilling and local content at Sheraton Hotel on Jan 23 .

“The Inspectorate of Government has 150 technical staff; how do you expect them to fight corruption in 113 districts and with only 16 regional offices?” IGG Irene Mulyagonja

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Chinese construction companies that were summoned by PPDA over fraud

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employees who were conned by a fake Turkish investor in Kampala

Shs90b

Extra money needed for completion of Nile Bridge in Jinja district

Feb 02 - 08, 2018

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week

Kutesa meets German Ambassador Albrecht Conze Ambassador Conze (L) delivered a special invitation to Sam Kutesa, Minister for Foreign Affairs, to attend the Berlin Energy Transition Dialogue 2018, which will be hosted at the Federal Foreign Office in Berlin in April.

Shs100bn industrial skilling centre launched A National Industrial Skills and Training Centre has been launched in Namanve Industrial Park to boost employment and industrialisation. The project is being funded by the Chinese at a cost of $30million (108billion) and will run until the end of 2019. The facility consists of 17 blocks, a manufacturing and electrical centre and the government is hailing it as a centre as a mechanism for reduction of poverty and promotion of inclusive economic growth. The project is contracted to Chinese contractor Jiangsu Jiangdu Construction Group Company which started work in November last year. President Museveni, in a speech read out by Prime Minister Ruhakana Rugunda, said the project is intended to address the issue of appropriate technology and human capital by introducing modern methods and practices for machining and manufacturing.

Dial 4

Police open fresh investigation into former Crane Bank staff The Police have opened fresh investigations into fraud at the defunct Crane Bank and summoned two of the bank’s former Information Technology (IT) staff. Zaki Syed, a senior IT manager and Samuel Mutunga, another IT manager were summoned by Criminal Investigations Department (CID) over hardware and software procurements. A total of Shs400billion was lost in various transactions Crane Bank was involved in. The bank was eventually sold to DFCU bank although the sale itself remains

*134 * 7#

Feb 02 - 08, 2018

a highly debated issue. A letter summoning the two officials signed on behalf of CID Director Grace Akullo by William Kototyo, senior commissioner of Police, read “They should report with details of the

software and hardware supplied by Technology Associates and its principals to Crane Bank in March and September 2013 supported with evidence of installation, invoice and payment”

*terms and conditions apply

Week

Salim Saleh under fire over sand mining Gen Salim Saleh, national coordinator of Operation Wealth Creation and President Museveni’s brother has been criticized for his comments, encouraging the various sand mining activities happening in Lake Victoria. Saleh told

US, AU pile pressure on South Sudan leaders The African Union has joined the United States in considering sanctions against those blocking peace in South Sudan. African Union chief Moussa Faki Mahamat said that “the time has come” for sanctions as a way of ending war in the central African country. Mahamat made the announcement at the opening of the 30th annual African Union summit in Addis Ababa, Ethiopia. His comments rhyme with those of the US Ambassador to the United Nations, Nikki

Salva Kiir Haley, who has repeatedly spoken out against South Sudan president Salva Kiir. Haley told the UN Security Council that Kiir’s government was “increasingly proving itself to be an unfit partner” in efforts to restore

Nikki Haley peace. Haley visited South Sudan in October last year where she strongly criticized Kiir. South Sudan has been at war since December 2013 when forces loyal to former Vice President Riek Machar and those of Kiir

environmentalists to stop harassing Mango Tree Group, a Chinese company dredging up part of Lake Victoria. Following his comments, The Parliamentary Committee on Natural Resources summoned the former army

commander to explain his comments, which they deemed harmful to the environment. There has been growing concern over sand mining on the lake which has seen both local businessmen and foreign contractors take part in the activity.

Red Pepper back After a two month shutdown, Red Pepper, a tabloid newspaper, is back on the stands in Kampala and across the country. Its first edition on Jan 29 after the shutdown read ‘Our Story’ and was bent on explaining its side of the story. President Museveni pardoned the directors and editors of Red Pepper after a meeting at State House Entebbe where he cautioned them to be more professional in their work. Red Pepper put out a statement after the meeting at State House, “The Directors and Senior Editors pledged to the President and the nation, a more transformed and professional publication going forward.” On Nov 21, Police shutdown the offices of Red Pepper after it published a headline incit-

ing war between Uganda and its south eastern neighbor, Rwanda. The directors and editors were charged with libel and offensive communication. It is widely expected for the charges to be dropped. African Centre for Media Excellence, a media NGO, said it was “disturbed” by the manner in which the tabloid was re-opened.

Cheers over first bypass heart surgery at Uganda Heart Institute Doctors at the Uganda Heart Institute registered a milestone when they conducted the first ever highly specialized bypass heart surgery on a Ugandan patient, Edward Kayondo. A team of 14 Ugandan medics comprising cardiologists, perfusionists, anesthesiologists and theatre nursing officers took part in the operation that lasted 10 hours. Dr William Manyilirah,

the lead consultant cardiothoracic surgeon, said the surgery was made possible after the heart institute acquired advanced equipment. He told Daily Monitor in an interview: “The coronary artery bypass grafting is done in three stages; one involves transferring grafts from one part of the body. The grafts are veins that we get from the legs and arteries from behind the breastbone.”

Feb 02 - 08, 2018

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Week

AU rocked by China spying allegations

Unrest after Boda Boda 2010 crackdown The arrest of Abdullah Kitatta, the leader of of Boda Boda 2010, an association of boda boda riders registered in 2010 seems to have created more unrest and confusion in the boda boda community. Rival boda boda groups launched reprisal attacks on Boda Boda 2010 claiming the latter group was responsible for robberies, violence and killings in Kampala. Recently, Lt. Gen. Henry Tumukunde, Minister for Security, met 17 boda boda groups in Kampala and called on those who are behind Boda Boda 2010 to come forward and they face off

after they raised issues against the latter group. “That talk of ‘above’, behaving with impunity has no place in Uganda today. I want to see he who calls himself big -Godfather to Kitatta- to come out” he was quoted. The comment was interpreted as a jibe at Police boss Kayihura who praised Kitatta, a week before he (Kitatta) was arrested. Meanwhile on Jan. 24, Mwanga II Magistrates Court remanded 8 boda boda riders, (rivals to Boda Boda 2010) over criminal trespass and malicious damage.

The African Union has been rocked by allegations that China bugged the building that houses the headquarters of the African Union in Addis Ababa, Ethiopia. The headquarters were built by China and opened in 2012. A French newspaper, Le Monde, reported that various AU officials said data from computers in the building had been transferred every night to

Former Nansana Police boss Kirumira charged with torture, extortion Buyende District Police Commander (DPC) Muhammad Kirumira is facing six charges for crimes he allegedly committed while he was in charge of Nansana Police Station and Old Kampala Division Police Commander in 2013 and 2014. The charges are torture, extortion, corruption, bribery, unlawful arrests and excessive use of arrests. The Police tribunal read out the charges to Kirumira on Jan 23 at

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Police headquarters in Naguru, Kampala. Senior Superintendent of Police Catherine Kusemererwa, as prosecutor, alleged that Kirumira used his powers as to torture civilians and extort money from them. Kusemererwa alleged that Kirumira as Division Police Commander arrested Aramathan Kakooza and tortured him until he paid Shs350, 000. She also alleged that Kirumira released a suspect in a drug syndicate after

Feb 02 - 08, 2018

he reportedly paid Shs4.8million. However some sources say there could be a witch-hunt stating that when Kirumira was in charge of Nansana, he had become popular for dismantling crime rackets and could be seen personally arresting suspects, a factor that sources say caused his transfer. He is however yet to be recalled from duty in Buyende since the charges were announced.

Chinese servers for five years. The newspaper reported that after AU discovered the bugs, it ordered for a clean sweep of the entire building. However AU Chairman Paul Kagame downplayed the incident and wondered why the continent allowed outsiders to put up the building. “We should have built it ourselves,” Kagame said.

Humour

Did you know? 8% of people have an extra rib?

0n Jan. 16, Prime Minister Ruhakana Rugunda put out a notice restricting foreign travel stating that the government is spending a lot on foreign trips for public servants

Army take over fighting crime and have vowed to arrest more members of Boda Boda 2010; a group that has been linked to robberies and murders in Kampala. The army has taken over some roles of police, leaving people wondering whether police has failed in its duty.

Extra rib is also called cervical rib , sometimes known as “neck ribs”. It is estimated to occur in 8% (8 in 100 people) of the population and it is a congenital abnormality located above the normal first rib. It can create different problems like chest infection, pain in neck and upper arm(mostly left side).

Senior 1 cut-offs stay high because of the improved performance across the country in last year’s PLE.

Feb 02 - 08, 2018

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News analysis NRM Day: Testing NRM’s big the promises numbers bad?

Health

Business

Scientists struggle to find new drugs?

Uganda’s bank for cooperatives a reality?

Issue No. 505 Jan 26 - Feb 01, 2018

Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

lebratin g Ce

Years

Should government takeover UMEME job?

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: [email protected]

Hydro power dam puzzle Refer to: “Power dams puzzle” (The Independent Online Jan.23). Uganda used to have annual rainfall of 2,200mm but now it has dropped to 1,600mm of annual rainfall. The trend is continuing given the high rate of deforestation vis a vis the rate of reforestation. Imagine such discrepancy. With this state of affairs, Uganda will continue facing interruptions in hydro electric power supply due to low rainfall. Therefore, we need to have a deliberate and strong insistence on tree planting for deliberate climate control. There should be a government policy with stern enforcement and monitoring of tree planting.

Karuma, Isimba power raises new questions

Follow us on Twitter @ http://twitter.com/#!/ugandatalks Follow us on Facebook @ www.facebook.com/TheIndependentMagazineUganda www.independent.co.ug

UWA’s domestic tourism initiative Refer to: “UWA boosts domestic tourism with buses” (The Independent, Jan.21 Online). The UWA new buses are a good gesture to enthusiastic Ugandans who wish

to travel. Buses to attractions like Maramagambo, Mt. Elgon (Kapkwata), Queen Elizabeth National Park (Ishasha), Lake Mburo National Park and Kidepo National

Refer to: Kenya Airways’s ready for non-stop daily flight from Nairobi to New York (The Independent Online Jan.13). To my knowledge Ethiopian Airlines was the pio-

neer African carrier that connected Africa to North America. And currently it reaches Washington DC, New York, Los Angeles and Canada using the ultramodern fleet, B787

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Feb 02 - 08, 2018

Dreamliner. For your information, Ethiopian Airlines started its operation to Washington DC in 1998. Dorthy K.

German envoy’s Ugandan coffee gesture

Mengo Hospital surgery deaths

Mark Yusto

Chombo

Kenya Airways’ non-stop flight to New York

Charles Muhigirwa

Refer to: “Committee to investigate Mengo deaths set up” (The Independent Online Jan. 21). Why should the minister micro-manage the health sector? There is already a deficit of surgeons (in the country) for such major procedures. Goodwill brings people over to help and/or teach yet the best we do is criticize. Major surgeries are carried out with a higher risk of death. Cardiac surgery is not a major cause of death. Does Parliament take note of the major causes of death? What needs to be done is to leave licensing in the hands of the Uganda Medical Council. I extend my gratitude to all persons who support Ugandans in any way. Do not despair (because) you are deeply appreciated.

Park for example would be ‘miraculous’ especially during the rainy season.

Refer to: “I will fight for Ugandan coffee” (The Independent Jan.22). Mr. Ambassador, your observation about Ugandan coffee, while not new, your stated intention is noble and very considerate. I am

a coffee farmer (typical smallholder). Truth be told, it is backbreaking to reach the point of selling quality dry coffee beans. The vagaries of weather, the “dog eat dog” attitude of middlemen, the not so helpful Uganda

Coffee Development Authority and the outright capitalist greed, all conspire to keep me in poverty. That is a big turn off for our youth to venture into an otherwise lucrative farming venture. Right now a kilo of dry processed coffee is $1.50. I think that value addition to African produced items is a moral obligation for humanity and a lasting sure way of keeping “the undesirable immigrants” out of Europe. What a winwin solution. Uganda warmly welcomes you Mr. Ambassador. Joe B

The Last Word

Opinion

Losing my innocence By Andrew M. Mwenda

How my hubris to become president of Uganda pulled me from the trees of utopia to the hard rock of reality

I

want to continue with a line of thought from this column last week i.e. that African countries cannot be governed using strategies Western governments employ to govern their societies. Government legitimacy in the West is based on many things. But one critical source of legitimacy is the ability of the state to provide all its citizens with a large basket of public goods and services. Sadly, African nations do not have the money to govern that way. I want to make an even more controversial proposition: that more than the character and competences of individual leaders in Africa, it is the limited financial resources that inevitably lead our governments to rely more on patronage (to secure the cooperation of elites) and repression (to coerce obedience from the citizenry). At the risk of sounding like his apologist, I think President Yoweri Museveni has ruled like the late Mobutu Sese Seko of then Zaire and Kenya’s Daniel arap Moi because of this challenge than because it’s his character. This conclusion came to me slowly and painfully in 2010 when, in a moment of extreme hubris, I speculated on running for president of Uganda. I believed, quite stupidly I now realise, that Museveni is an incompetent manager of public affairs. I felt I was better. My plan was to develop a national budget that would ensure that my government would base its legitimacy on delivering a modest basket of public goods and services to all citizens through arms-length interactions mediated by public institutions. I am aware that there are many reasons why citizens may support a government; provision of public goods and services is only one of them, perhaps even not the most important. But space does not allow me to delve into this subject. I will return to the different bases of legitimacy next week. So let me deal with my hubris of running for president against Museveni. I decided to write a modest budget where public officials would be paid a living wage, build roads, dams, improve the textbook/teacher/classroom to pupil ratio, ensure hospitals would not run out of drugs and all the public goods and services associated with a modern state.

I did extensive research in public sector costs whose details would clutter this article. So I hope you just trust me. My annual budget came to $75 billion. Now you may think this is too much money. Yet, when you get this $75 billion and divide it by the total population of Uganda (39m people), you get public spending per person of only $1,923. This money is supposed to pay for universal education from primary to university, universal healthcare, roads, bridges, electricity dams, transmission and distribution lines, water and sewerage, agriculture extension services, trade, pensions for the elderly, justice, security, finance industrialization, sports, build sea and airports etc. Let me ignore 2011 when I would have become president and use the 2016/17 budget. Note that Uganda’s revenue for that financial year was about $4.5 billion, its budget was $6.7 billion and its GDP was about $25 billion. If you divide this by 39m people, public spending per person was a paltry $169. How much can anyone reading this article do with this money in an entire year? Even what I had thought was a modest budget was far beyond the means of my country. It became clear to me that my country simply doesn’t have the resources to govern itself the way I thought it can and should. So I checked out the USA budget for 2017 in large part because it is the most easily available online. It was $7 trillion. Divided by a population of 320 million people, it comes to $21,875 public spending per person. Now remember that this is public spending on a population with average income of $58,000 i.e. many Americans do not need government to pay for their needs because they have enough already. Relying on service delivery as a governance strategy is a viable option for the USA because it can afford it. Not for Uganda. So I decided to ask myself a counter question. How are countries in Uganda’s income bracket governed? I looked at all of them and with the exception of post genocide Rwanda, I realised they are governed using the same strategies as Museveni uses. In fact all the countries in my sample, with the sole exception of

Malawi, had per capita public spending higher than that of Uganda. Yet when you evaluate the outcomes of their public services, a subject I will go into detail another day, you find that Uganda performs as good as them and even better in many fields. One could say that these are African countries with the same “vampire” leaders and “predatory” states as Uganda. So I decided to find out when the USA had the same per capita public spending as Uganda. I found it was in the year 1860. Total public spending by federal, state and local governments was $178 million. I adjusted this to 2016 prices and it came to $4.9 billion. Then I divided it by the USA population of that year i.e. 31.4m people and it came to $159 public spending per person. Then I looked at the breakdown of the budget. Note that the USA in 1860 did not spend a penny on pensions, health, education or welfare for its citizens. How was it governed? It was through a combination of patronage and repression, just like all the poor nations of Africa today. Then an idea became clear to me: the postcolonial state in Africa adopted a governance model for legitimacy that is not suited to her wallet. The state is over developed in function but grossly under developed in capacity – especially financial. So its reach is far beyond its grasp. That is why African politicians come to power promising to deliver public goods and services to citizens. Then they discover they do not have the capacity. Unable to fulfill their promises, they retreat to old, traditional means of managing power relations – patronage (which we call corruption) and repression (which we call dictatorship). The two twin sisters constitute what are referred to as “bad governance” in the modern lexicon. In this column next week, I will argue that what we call “bad governance” (patronage and repression) is perhaps not only the most cost efficient and cost effective way to govern poor nations but also the only affordable governance strategy available to them given their meager financial resources. [email protected] Feb 02 - 08, 2018

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cover story

The fall of Kayihura's men How the war between Kayihura and CMI crashed Boda Boda 2010 By Haggai Matsiko

The circumstances surrounding the arrest of Abdullah Kitatta, the self-proclaimed patron of Boda Boda 2010, has become a talking point in security circles about how far the military is willing to go to dismantle the power structure of Police Chief, General Kale Kayihura. Kitatta, who has faced military court and was remanded together with 12 others over charges of unlawful possession of arms, was arrested by the Chieftaincy of Military Intelligence (CMI), an intelligence outfit of the military that now finds itself at the apex of Uganda’s ever-changing security infrastructure.

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nsiders say Kitatta’s arrest followed CMI’s interrogation of his brother, Huzair Kiwalabye, who was picked up in a Jan.19 sting as part of the investigations into the murder of Francis Ekalungar, the former accountant of Case Clinic. Insiders say CMI was able to locate Kitatta’s whereabouts after getting his brother to call him. Once he caught wind of the impending trouble, sources say, Kitatta made several frantic calls. He called the Inspector General of Police (IGP) Kayihura, seeking protection. In turn, the IGP called State House and the CMI boss. At State House, the switchboard handler didn’t offer much. At CMI, Col. Abel Kandiho, who heads the outfit, was not available and instead one of his handlers told Kayihura that Kitatta’s matter followed orders from above. Until recently, Kitatta, who had in a matter of years risen from a boda boda operative to the highest echelons of power with direct access to both President Museveni and the police chief, was untouchable. He had procured this power and access by controlling and organizing the association of boda boda riders and owners into a vigilante arm of the police. Kitatta and his group would scratch the police chief’s back by using his group to quell opposition demonstrations, control some gangs and in turn, the police chief would turn a blind eye to their activities, insiders who are critical of that relationship claim. Kayihura, however, defended Kitatta as a resource who helped police in dealing with crime. Now in the last minutes of Kitatta’s arrest, all this appeared useless. The man who bragged about direct and unfettered access to State House, was being hunted like a rat. Finally, when it emerged that he had been arrested, all hell broke loose. Mobs in Kampala broke into the offices of Boda Boda 2010, burnt down their furniture, documents, and even beat up leaders of the association. The mobs doing all this were also carrying placards of Museveni whom they hailed as their liberator from the group. The police was impotent and could not stop the carnage. Some of leaders of the association have gone into hiding, fearing for their life. Yet only

cover story

Abdullah Kitatta a while ago, the group’s leader, who appeared to have power over life and death, was a regular at State House. To understand the fate of Boda Boda 2010, one has to appreciate the changing power dynamics in Uganda’s security services, which are closely tied to politics. Their fate is closely tied to the fate of Gen. Kayihura. And by extension, some claim, the deteriorating relations between Uganda and Rwanda. Over the last decade, Kayihura has accumulated a lot of power. He has done this by turning the police into a political arm of the ruling National Resistance Movement (NRM). In using the police to fortify Museveni in power, Kayihura has been able to successfully divert a significant amount of budgetary resources to the force, thereby turning it from a sidelined and weak organization into the most visible institution in Uganda’s power politics. When Kayihura joined Police in 2005, the police budget was under Shs70 billion, it has since skyrocketed to over Shs400 billion. Now armed with a large array of armored vehicles and other anti-riot gear, the Uganda Police Force (UPF) has been an intimidating presence. This made Kayihura a very powerful man but equally bought him very many enemies inside and outside the system. To protect himself, Kayihura set out to use the police to break down

incessant opposition protests in Kampala and elsewhere. Indeed, although the opposition has been Kayihura’s bitterest enemies, indirectly they have been his allies. The more they hated him and campaigned for his removal, the more Museveni felt the IGP was effective and kept renewing his contract, making him the longest serving IGP in Uganda’s history. But because of the favour he enjoyed from the president and also because of the power he wielded, many inside the security and political establishment in Uganda wanted his position. For years, they have been fighting hard to clip his wings and cut down his power. But Museveni had remained steadfast in his support of his IGP. Yet it is apparent from the recent crackdown on “crime” in Kampala that Museveni has dropped Kayihura. What has changed? Kayihura’s success appeared to walk hand in hand with his doom. Some analysts claim that Kayihura’s problem is that while he became very successful dealing with the opposition, he appeared to fail miserably at dealing with crime. Knowing that the city is teeming with hundreds of thousands of unemployed and frustrated youth always ready to protest, Kayihura adopted a policy of counter political mobilization by coopting some of these youth. He infiltrated these groups, Feb 02 - 08, 2018

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cover story recruiting many to his side and turning others into his agents inside the opposition camp. This way, whenever the opposition is plotting protest, Kayihura is tipped off, well in advance. This is the strategy Kayihura has used to cripple the opposition in Kampala, insiders claim. To make it more effective, Kayihura facilitated the formation and growth of Boda Boda 2010. As an organized force, it was easy to mobilize quickly and deploy. Indeed, many times there is a protest in Kampala and police gets overwhelmed, police would call in the group to help. This strategy is neither new nor is it unique to Uganda, some of Kayihura’s handlers claim. For the NRM, it has been a long and tested strategy not only in combating urban protests but also in containing armed rebellion. Thus whenever the government has faced a challenge, it has made the civilian population part and parcel of the defense of the government. For example, they claim, while fighting rebellion in Acholi, the government recruited a civilian militia called Home Guards. In Teso, they created the Arrow Boys. In Western and Central Uganda, they created Local Defense Units. The NRM has also created many vigilante groups like Civic Defence Team, Kalangala Action Plan of Kakoza Mutale, Popular Intelligence Network (PIN) etc. All too often, these groups have relied on hardened criminals for leadership. But by its very nature, this strategy of using vigilantes to contain protests comes with inevitable costs. For a long time, it appears Museveni and his handlers were willing to keep a blind eye on the activities of these groups even amidst public outcry. Many people have accused Boda Boda 2010 of meting torture on them, confiscating their boda bodas and its leader of abusing access to power. Part of this, insiders say, is down to the fact that Kayihura listened a lot to Kitatta. This gave Kitatta confidence to even interfere in police work. Police officers were afraid to act against Kitatta when he was in the wrong because they felt he would report to Kayihura. Some claim they were instances when Kayihura would easily transfer officers on or put them on katebe because Kitatta had complained. So this gave Kitatta power over police. To this extent, critics say Kayihura subordinated a professional state security institution to an unruly militia instead of vice versa. Secondly, critics also claim, 12

Feb 02 - 08, 2018

Presidents; Museveni and Kagame in Addis Ababa, Ethiopia

To make it more effective, Kayihura facilitated the formation and growth of Boda Boda 2010

Kayihura’s management style denied him the necessary feedback loops that would have led him to create the necessary distance between himself and Kitatta; and then ensure police officers could rein in Kitatta. But Kitatta had also grown big with direct access to the President. Insiders say in meetings of the National Security Council, the highest security body that brings together security chiefs from different bodies, Kayihura was often warned of rogue elements in police but did nothing. Last year, the situation appeared

to get out of hand. When Assistant Inspector General of Police (AIGP) Andrew Felix Kaweesi was murdered in March, many pointed to rogue elements in police. The president also noted that the police had been infiltrated by rogue elements and starting with the murder of Kaweesi, asked CMI to investigate crime. In the same year, machete wielding gangs sent shock waves across central Uganda. When police carried out a sting, some of the suspects said they were working with police. As security officials were still grappling with this crisis, a spate of women murders also engulfed Kampala suburbs. Critics say police did not only appear infiltrated, it appeared helpless. To make matters worse for Kayihura, where police appeared to be failing, the military started delivering. Then the president assigned them to look into a complaint by UN officials about allegations that Rwandan operatives were kidnapping dissidents and taking them back to Rwanda. These investigations climaxed into the arrest and trial of seven police officers before the General Court Martial (GCM) on Oct.27, 2017. The seven included; Senior Superintendent of Police Nixon Agasirwe, the former commander Special Operations Unit, Senior Commissioner of Police Joel Aguma, the commandant of the police Professional Standards Unit, Assistant Superintendent of Police

cover story

Nixon Agasirwe (left) at the General Court Martial.

Magada, crime intelligence; Benon Atwebembeire, Sgt Abel Tumukunde, the Kampala Metropolitan Police flying squad commander, Faisal Katende, flying squad and Amon Kwarisima. They were supposed to be 12 but five were yet to be netted, a source intimated. Jonathan Baroza, the former aide to Gen. Kayihura, was also targeted. Apart from these police officers, the other two suspects were; a former Rwandan soldier, Rene Rutanungira, who has been living in Uganda and a Congolese national, Bahati Mugenga. Reading from the charge sheet, Lt. Gen. Andrew Gutti, who was appointed the Chairman of the General Court Martial last year, said the officers, around October 25, 2013, while in unlawful possession of firearms and grenades, ordinarily a monopoly of the Defence Forces, conveyed Joel Mutabazi a former presidential guard for Rwandan President Paul Kagame and Jackson Kalemera without their consent to Rwanda. Since then, the arrest of Rwandans in Uganda has intensified with the

military claiming it is investigating Rwandan operatives. It is on the basis of this that some analysts say the fall of Kayihura has little to do with crime in Uganda but a lot to do with the deteriorating relations between Uganda and Rwanda. The more these tensions have worsened, they claim, the more it has become inevitable to clip the powers of Kayihura. There has always been suspicions against Kayihura whenever relations between Kampala and Kigali have soured. The IGP has confided to friends before that whenever Uganda and Rwanda are at loggerheads, Kampala accuses him of being a mole, Kigali of being a traitor. Kayihura has a strong connection with the Rwandan leadership at the highest level. President Kagame was Kayihura’s best man at the latter’s wedding. Kagame’s wife used to live at Kayihura’s home during the RPF struggle. Those who peddle this view, claim that once Museveni was convinced that Kayihura was serving Rwanda’s interests, the IGP’s job became precarious, his long stay at his post

untenable. He instructed CMI to take over many police functions including arresting and detaining police officers accused of worked with Rwanda. Being a loyal person to his subordinates who serve him loyally, insiders say, and knowing how much Kayihura has served him, Museveni has decided to clip his wings without firing him. Thus, CMI and ISO have come and taken over most of the security work in Kampala and sidelined Kayihura and the police. If Kayihura falls or is neutralized, some insiders claim, it will be because he had also become expendable. They claim that he will most likely be removed and humiliated but the strategies he employed will remain. A new group will fill the void of the old and its members will most certainly recruit from Boda Boda 2010 because their experience is invaluable. But in this war with CMI and the regional tensions, insiders agree, Kayihura stands very little chance just as the vigilante groups he has supported. Feb 02 - 08, 2018

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NEWS ANALYSIS

Uganda is looking at building such infrastructure to commercialize her oil.   INTERNET PHOTO

$3.55 billion pipeline deal

Contractor, gov’t offer pointers, urge suppliers to get ready By Ronald Musoke

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xcitement filled Hotel Africana’s spacious Nile Hall on Jan.17 as hundreds of local suppliers braced for details about the specifics of the $ 3.55 billion pipeline deal contained in the study about its engineering designs. Houston-based Gulf Interstate Engineering (GIE) carried out the year-long study at $ 11.5 million to guide Total, CNOOC, Tullow, the Uganda National Oil Company (UNOC) and the Tanzania Petroleum Development Corporation (TPDC) on investing in the project. The Africana event, officials said, was intended to share findings of what is technically called the Front End Engineering Designs (FEED) of the pipeline with potential suppliers to help them identify and prepare for business opportunities. But as Mark Lamb, a jovial elderly engineer at GIE delved into what Ugandans are 14

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expected to do to partake of the expected billions, gloom permeated the hall. “How ready do you think we are?” Elly Karuhanga, the Chairman of the oil and gas investors lobby—the Uganda Chamber of Mines and Petroleum (UCMP) asked rhetorically. He also noted that that Lamb’s presentation had filled Ugandans with fear and that he felt they might not be “field ready.” Karuhanga’s observation could also be seen in the questions that Lamb received from the Ugandan prospective service providers. “Shall we be allowed to cross to Tanzania to do business there? How are the two countries’ standards going to be harmonized? Is it possible for Ugandan service providers to bid beyond Tanzania?” The anxiety is mainly driven by the fact that the portion of the pipeline in Uganda is only about 296km which is about 21 percent of the entire route. The bulk of it, 1,149km

is in Tanzania. Given that the whole deal is $ 3.55 billion, if Ugandans were to get deals on only the portion in the country, they would be looking at a paltry $743.5 million. Patrick Odwe, a local service provider feels that this would be unfair given that Uganda is the source of the opportunity— the oil. The pipeline is set to carry oil from fields in Uganda currently being developed. So far, the fields are two—the Total E&P operated Tilenga project in Buliisa and Nwoya Districts and the CNOOC operated Kingfisher project in Hoima District. The Tilenga project will have a processing facility with capacity of up to 190,000 barrels of oil per day and the Kingfisher project, 40,000 barrels of oil per day. These processing facilities will feed into the refinery and the 1,445km pipeline terminating at Chongoleani peninsula near the Tanga Port in Tanzania. It will comprise a buried insulated 24”

NEWS ANALYSIS He said Tier-4 looks at the more technical service suppliers like Halliburton and Schlumberger and Tier-1 is looking at basic supplies like labour, security, field inspections, pipeline, safety, and electrical inspectors. “This is where a lot of opportunity is,” Lamb said. About 10,000 people are expected to be employed during the construction phase. “There will be early civil works (building camps, temporary and permanent roads for the pump stations).” About 2.6 million cubic metres of earth will have to be moved, he added and there will be need for portable power generators. There will be temporary fencing, permanent fencing, construction labour, dry land transport, and security along the pipeline. “There will be need for manual, semiskilled and skilled camp managers, foremen, drivers, supervisors, warehouse managers, equipment operators. This meeting is about business opportunities, so get ready, get ready.”

Opportunity galore

pipeline with an electrical heat tracing system associated above ground facilities, and a marine storage terminal with export facilities near Tanga. It will start from Kabaale and traverse eight districts including Hoima, Kyakwanzi, Kakumiiro, Mubende, Gomba, Ssembabule, Lwengo and Rakai. It will then enter Tanzania through Mutukula to Chongoleani in Tanga on the Indian Ocean coast.

Expect high standards

But rather than worry about whether there would be access to deals in Tanzania, Lamb appeared to urge suppliers to concentrate on their core competencies and create a track record. He said the project’s codes and standards have been borrowed from best practices around the world to ensure safety of the project and that they will have to be strictly complied with. “Every service provider including suppliers and contractors will be bound by all these regulatory requirements (safety, construction, operation and IFC regulations),” he said, “We don’t want to do it fast we want to do it right so the project survives for 25 years.” In describing the work packages that may hold interest for Ugandan businesses, Lamb said the project has four tiers of contracts.

Irene Batebe, the Commissioner Midstream Petroleum Department at the Ministry of Energy and Mineral Development explained that the Jan.17 event was intended to point out to Ugandan service providers the available opportunities for investment and supply of goods and services. “In taking forward this project the Ministry would like to emphasize the importance of collaboration and working in partnerships with all stakeholders,” Batebe said. As part of this, she noted that the ministry is in the process of putting up a national content policy that will promote participation of Ugandan labour and enterprises in the oil and gas industry. Peninah Aheebwa, the Director technical support services at the Petroleum Authority of Uganda (PAU) in charge of national content also emphasized optimal participation of Ugandans. Over the years, several studies have focused on this. A 2011 study highlighted available opportunities and challenges that would inhibit Ugandans from fully participating in the sector. In 2013, an industry baseline survey done

Elly Karuhanga

by the international oil companies, assessed 25 of the local industries in Uganda and also identified what they could and could not do. And in 2014, a capacity needs analysis also put in place a workforce skills development strategy and plan and the government was able to set targets for foreign companies. PAU has, as a result of these studies, developed the national supplier data base –a platform where the PAU, the suppliers and the buyers (IOCs) interact. The idea is to increase the local suppliers’ visibility, efficiency in the supply chain and create fair competition. So far, the database has 927 companies (both local and foreign registered) and more are expected to register in another window expected to open at the start of March. Ali Ssekatawa, the director Legal at PAU noted that the disclosure of the FEED findings was intended to further help these suppliers weigh their options in the project. On whether Ugandan businesses would get deals in Tanzania, Ssekatawa said the two governments were involved in negotiations with the view of standardizing the local content regulations of the two countries. Aheebwa also noted that the pipeline was a single-integrated project and discussions are ongoing to open it up for service providers to cross borders. Aheebwa even revealed that the government has even ring-fenced services for locals. Aheebwa was referring to the 3-tier procurement process where if an international oil company is not able to get a Ugandan company to do something, the law requires that the foreign company partners with the local company. She advised the local entrepreneurs to look beyond transporting between Mombasa and Tanga to the site. “Look out for foreign firms that are coming into the country,” Aheebwa said, “do joint ventures and prepare so the biggest portion of the investments on the project does not leave the country.” Lamb offered the same counsel before exiting the podium to head to Tanzania where he was to make a similar presentation. “Don’t be fearful to partake in the opportunity,” he said, “look at the documents and interpret the information.” Douglas Evans, the Chairman of GIE described the pipeline route, which Uganda chose in 2016 as the least cost and most robust route, as one of the “world class” projects his firm has recently worked on. “You have an opportunity here and our challenge is to inspire you and explain to you those opportunities so you take them up,” Evans said.“But the opportunities are not going to happen overnight, they will take months or even years to develop.”

Ali Ssekatawa Feb 02 - 08, 2018

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NEWS ANALYSIS

Experts say Uganda needs to invest in storage facilities to cut down on losses for farmers. 

INDEPENDENT /IAN KATUSIIME

Uganda’s faltering fight against poverty By Dicta Asiimwe

Days after it emerged that the number of Ugandans living below the poverty line has increased to levels last seen twenty years ago, debate amongst experts is raging. But while the figures have raised eyebrows, experts say they are not overly surprised given the failure to industrialise, a high population growth rate and a limping agricultural sector that has over the years received minimal and ill-advised investment. The new poverty figures are contained in the latest Uganda National Household Survey (UNHS). The number of people living below the poverty line, the survey shows, increased from 6.6 million four years ago to the current 10.1 million.

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his 53 per cent increase means Uganda is back to where it was in 1997, when there were 9.8 million people living below the poverty line. Several factors including low productivity have contributed to this situation, experts say. A recent study by the University of Denver on behalf of USAID shows that most of Uganda’s productivity is in urban areas, while rural districts where close

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to 80 per cent of the population live, are doing very little. Joseph Muvawala the Executive Director of the National Planning Authority says Uganda has only experienced economic growth because the country liberalised the economy, controlled inflation and ensured a stable shilling. But, he adds, such interventions are no longer enough.  Due to these interventions, the service and construction sectors have

been growing and spurring economic growth leading to little reduction in poverty, even if agriculture which employs majority of the population was under performing.    To return to the path of reducing poverty, economists say, Uganda would have to maintain economic growth at above 7 per cent. This has not happened since 2010. Matters are not helped by the fact that agriculture productivity, an important

NEWS ANALYSIS

UNHS shows that the average monthly expenditure for a Ugandan household is just Ush351, 600 ($96.3)

contributing factor, has been largely underperforming.  Information from the World Bank’s 2017 economic update shows that over the last seven years, agriculture has consistently grown at a rate lower than the country’s over 3 per cent population growth rate. This makes the 69 per cent of the Ugandan households that survive on subsistence agriculture vulnerable to sinking further into poverty and explains the decline. To have a meaningful reduction in the number of people living below the poverty line, Ezra Munyambonera the Head of the Macroeconomics department at the Economic Policy Research Centre (EPRC) says that Uganda and African countries will have to invest in increasing agriculture productivity through the use of fertilisers, investment in extension services, irrigation and storage facilities for when there is over production. Market systems have to also be structured to work for farmers.   “Poverty in Uganda can only be fought by increasing crop and animal productivity,” Munyambonera says, “Agriculture productivity is at 20 per cent of its potential. It is too low to eliminate poverty.” According to EPRC data, fertiliser

usage stands at 5 kilograms per hectare compared to the recommended 60 kilograms. There is also little investment in storage facilities, which leads to losses for farmers. President Yoweri Museveni has said that Uganda currently has a maize glut of 4 million tonnes. He says that Ugandans harvested 5 million tonnes of maize but the country’s prisons, armed forces, schools and the occasional household that consumes maize meal could only absorb 1 million tonnes, leaving the rest for mainly export. Yet to effectively export surplus crops, Dr Munyambonera says, proper storage facilities and a regulated marketing system are necessary so that farmers can wait out the glut. But instead of these investments, Uganda has provided seeds in an environment that is delivering very little returns. So far the ministry of agriculture has distributed 400 million tea seedlings which should now cover 62,000 hectares of land. Instead Uganda only has 16,000 hectares under tea production.  Without the appropriate investments, agriculture productivity has been poor making it impossible for Uganda to benefit from $40 billion in foreign exchange that Africa sends abroad to import food.  With investment in improving agriculture productivity, experts say, Uganda would benefit from increased income at the farm and limited industrialisation processes would start to take off. Vietnam, one of the Asian tigers is highlighted to show how investment

in agriculture now would pay off much better than the current investment in infrastructure expected to start paying off ten or so years from now.  In the 1960s, Vietnam was producing 1 million bags of coffee, which was lower than Uganda’s 3 million bags. Vietnam’s tea production has since increased to 32 million bags, which earns the country $3 billion. In comparison, Uganda last year exported 4 million bags of coffee making $490 million according to data from Bank of Uganda. Were Uganda’s coffee production to expand to the levels of Vietnam, Dr Munyambonera says the country would not only benefit from the increased income for farmers but there would also be more jobs from the processing factories. With about 400 coffee processing factories instead of the 35 licensed processors that currently exist, some Ugandans now stuck on the land, contributing very little to productivity, would get jobs.  “The Asian Tigers first looked at their domestic economy by starting with medium agro processing,” says Dr Munyambonera. An increase in jobs would increase money available for Ugandans to spend, leading to more local investors, while at the same time making the market attractive for international investors. Currently the UNHS shows that the average monthly expenditure for a Ugandan household is just Ush351, 600 ($96.3). This amount is too little to attract foreign investors, experts say. Yet according to Kasingye Kyamugambi the Coordinator of the Standard Gauge Railway (SGR) project, Uganda is investing heavily in the road, railway and electricity infrastructure to attract investors. The same view is held by officials at the Electricity Regulatory Authority who have argued that it is okay for Ugandans to buy electricity expensively. According to these officials this is necessary for Uganda to invest in electricity which will attract investors. But Dr Munyambonera says this policy is ill advised as foreign investors are attracted by several other things other than availability of infrastructure. He highlights skilled labour and market availability which Uganda doesn’t have at the moment.

Feb 02 - 08, 2018

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NRM 32nd Anniversary

President Museveni during the NRM celebrations in Arua on Jan 26.

NRM’s 32 years

President Museveni promises to fight and defeat corruption like he routed out indiscipline from the army

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n Jan. 26, Uganda’s ruling party, the National Resistance Movement, celebrated its 32nd anniversary in the northwestern town of Arua with focus on the economy, governance, the peace dividend and national unity. What was unmistakable from the celebration is the fact that although significant achievements have been garnered over the last three decades some challenges remain for the NRM leadership to tackle. President Yoweri Museveni noted in his speech that the years of neglect, apathy, mismanagement and institutional inefficiency that had eroded the country’s image no longer exist. For many years, the NRM evolved using two principles – patriotism and pan-Africanism. Patriotism meant unity within Uganda to ensure prosperity and security while PanAfricanism was adopted to promote unity in East Africa and Africa in order to guarantee the same prosperity and security. The President has on many occasions said that the unity of Uganda and its market is not enough to guarantee prosperity and strategic security. The unity of East Africa, the unity of Africa can do these two better than the mere unity of Uganda. In order for the people to benefit from Pan-Africanism and from Uganda’s unity, the society had to undergo a metamorphosis ─ a socio-economic transformation. This is

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because one cause of parochialism and sectarianism of ideology is a stunted society in terms of socio-economic transformation. President Museveni has always insisted that the middle class in the country should have a high proportion of the national bourgeoisie and not just traders especially not importers of goods and services that can, more economically, be made in Uganda.

Other key sector interventions

For the country to overcome challenges, the NRM maintains that there is need to understand the proportions of socialeconomic transformation which is very crucial and unique. Some questions have been raised in this regard. What stimuli, for instance, did the NRM use to encourage this process? The President has been clear in answering this question. Apart from peace, he has said before that the NRM used four other stimuli – education for all (Universal Primary Education, Universal Secondary Education); liberalization of the economy; improved health (especially immunization) and improved infrastructure (roads, electricity, telephone, the ICT backbone, piped water and safe water in the villages among others). Regardless of the challenges faced, as a consequence of these deliberate steps, the literacy rate is now 75%, up from 43% in 1986. The social base for socio-economic transformation has, therefore, been laid. Going forward, this transformation is

going to be used to transform the society further. For this to happen there is need for correct policy stimuli to do so. Its effective implementation by government and other stakeholders would serve a good purpose. Meanwhile, the other policy undertaking, liberalization since the early 1990s has helped in the creation of the middle-class by removing the state (government) from doing business. The State used to monopolise the business of hotels, transport, imports and others. The state transferred these sectors to the hands of the private sector with a view that this would create efficiency and spread wealth amongst the people. To a larger extent this policy shift has yielded positive results. On democracy, NRM leadership believes strongly that much has been achieved. The democracy pushed by the NRM, is much richer than anything, anybody, has attempted to do in the world, other than the ancient Greeks who produced direct democracy, in the city states. In the process, women have been empowered, the youth, the workers, the disabled; the soldiers have all been well sucked in the country’s democratic processes.

Dealing with 10 strategic bottlenecks

Over the last 50 years, the NRM has identified 10 strategic bottlenecks which include; ideological disorientation, a weak state especially the army that needed restructuring;

Advertorial the suppression of the private sector and the underdevelopment of the human resource (lack of education and poor health). The others are; the underdevelopment of the infrastructure (the railways, the roads, the electricity, the telephones, piped water and other facilities); a small internal market; the lack of industrialization; the underdevelopment of the services sector (hotels, banking, transport, insurance); the underdevelopment of agriculture and the attack on democracy. Over the years, the NRM has aggressively been handling many of the strategic bottlenecks. This stance means that the country is better placed to convert Uganda into a middle-income country by 2020 and an upper middle-income country by 2040. Whereas recent numbers have seen a slight rise in poverty amongst Ugandans largely because of bad weather affecting the agriculture sector and a few other causes, President Museveni, being a veteran of fighting poverty and working for socio-economic transformation in Uganda, there is hope that this trend will be reversed. Agriculture remains the country’s big sector in terms of providing income to over 70% of the population. The population is encouraged to continue engaging in the growing of crops such as coffee, food crops (bananas, cassava or Irish potatoes, vegetables, tomatoes). There are also opportunities in animal rearing, poultry, piggery, fish farming and

others. These activities have potential to get 68% of the households out of poverty. The bigger picture is; agriculture continues to provide raw-materials for a wide spectrum of industries – dairy, beef, textiles, fruits, grain milling, coffee, tea, cocoa, sugar, wood products, tobacco, and medicinal herbs. This is critical because many people are getting jobs in these industries. In addition, the other industries will be based on minerals. There are also those based on human skills such as the Kiira electric car, the Kayoola electric bus, the multiple computer applications developed by computer scientists and others. Fortunately, the services sector is already providing important stimuli for modernization – tourism, transport, banking, and trading, insurance and professional services.

Capital mobilization

There are five wealth and job creation funds which the NRM has been pushing for to support groups get capital and go about businesses that would transform their lives. These funds are: the NAADS Fund, the Youth Livelihood Fund, the Women Fund, the Micro-Finance Fund and the Innovation Fund. These are expected to boost income for the people involved and have multiplier benefits for the economy. They are meant to be interest free or lowinterest loans to those who cannot borrow from commercial banks. In general terms,

these funds aim at eliminating the 68% of the homesteads that were identified by the 2002 census as being outside the money economy. The other key area of interest that the NRM is looking at is attracting more Foreign Direct Investment (FDI) and the activities of the bigger investors. This has already been happening. The country hopes to see more of this happening. There is hope that this will create bigger units ─ factories for sugar, steel, fertilizers and others. Going forward, the government will continue to ensure there is peace and security, a stable and growing economy, democracy and rule of law and above all, civil servants serve the interests of the common man. For all these to yield tangible results, however, everyone has a role to play. The President has however identified one big problem that must be dealt with. This is corruption among public servants ─ judicial staff, medical personnel, staff dealing with licensing projects as well as some elements of the political class. In his detailed speech in Arua, President Museveni assured the public that corruption will be eliminated. “There will be no equivocation on this issue. “Enjokyi, ihakuurwa omuriro” (you use fire to tame aggressive bees). The way we defeated the indiscipline of the army, is the way we are going to defeat corruption,” Museveni said.

SBI INTERNATIONAL HOLDINGS AG (UGANDA) The Management & Staff of SBI International Holdings AG (Uganda) congratulates H.E. The President of the Republic of Uganda, Cabinet Ministers, Members of Parliament and all the people of Uganda on the occasion of the 32nd NRM Liberation Day ONGOING PROJECTS

Kabaale International Airport Kikagati Hydro Power Project Mukono-Katosi-Nyenga road Lubowa Housing Project

FIL Courts, Plot 88, Luthuli Avenue Bugolobi, P.O. Box 11713 Kampala-Uganda, Tel: +256-31-2500500 | Email: [email protected] | Web: www.sbi.co.ug Feb 02 - 08, 2018

19

Congratulations Advertorial

The Board, Management and Staff of Uganda Road Fund Congratulate the President of the Republic of Uganda, H.E General Yoweri .K. Museveni and all the People of Uganda upon the celebration of the 32nd NRM anniversary.

Happy

32

Years of NRM

Financing Road Maintainance

The Uganda Road Fund (URF) 5th Floor, Twed Towers,Plot 10, Kafu Road Nakasero, P.O Box 7501, Kampala Tel + 256 (0) 414 257 072 + 256 (0) 312 178 250 e-mail address [email protected] 20

Feb 02 - 08, 2018

Uganda Road Fund

@UgandaRoadFund

www.roadfund.ug

kenya

Odinga swears in as ‘People’s President’

NASA’s Musyoka, Mudavadi skip event By Ian Katusiime

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uge crowds gathered at Uhuru Park in Nairobi to witness the swearing in of Kenya’s Leader of Opposition, Raila Odinga as the ‘People’s President’ on Jan. 30. Earlier in the day, the government shut down three television stations; Citizen TV, KTN and NTV and had also warned media houses against broadcasting the event of the leader of the National Super Alliance (NASA) swearing in. Deputy President William Ruto had told a church congregation a few days before NASA’s planed activity that the government does not recognize the swearing in of Odinga. He added that the Kenyan people had elected their leaders in 2017 and the government was now focusing on development. Odinga took the oath, administered by Ruaraka MP TJ Kajwang, in an act not lasting more than ten minutes. He was surrounded by close allies Miguna Miguna, Siaya Senator James Orengo, and Mombasa Governor William Joho as thousands of supporters cheered him. Odinga’s co-principals in NASA like Kalonzo Musyoka, Musalia Mudavadi and Moses Wetangula (NASA) were absent but Odinga said Musyoka would be sworn in another day as the deputy people’s president. “I Raila Amollo Odinga, in full

realization, of the high calling, assume the office of the People’s president of the Republic of Kenya, do swear that I will be faithful and bear true allegiance to the people and the Republic of Kenya,” said Odinga. He also swore to preserve, protect and defend the constitution of Kenya. The swearing in of Odinga had been initially scheduled for December 2017, months after his rival, Uhuru Kenyatta, took his oath as President of Kenya. For six months, Kenya has been embroiled in a political crisis that has bitterly divided the nation and derailed East Africa’s largest economy. Odinga petitioned Kenya’s Supreme Court after he deemed the re-election of Uhuru Kenyatta on Aug.8, 2017 a sham. On Sept. 1, the Kenyan Supreme Court annulled the election citing massive irregularities by the country’s election body, the Independent and Electoral Boundaries Commission (IEBC). As the country prepared for a fresh election, Odinga withdrew from the poll and asked his supporters to shun voting. The 2017 presidential election was Odinga’s fourth and the second where he was facing off with Kenyatta. The repeat presidential election happened on Oct. 26 but with only supporters of Kenyatta taking part. Since then, it has been protests and demonstrations as supporters of Odinga clashed regularly with the police.

Odinga’s oath is also happening at the time Kenyatta’s new cabinet has faced criticism over inclusiveness. The president has also been criticized over a new position he has added to his cabinet set up- Chief Administrative Secretary, which many analysts say will likely duplicate the role of Principal Secretary. Kenyan activists and journalists criticized the shutting down of the television stations. Boniface Mwangi, photographer turned activist posted on Facebook: “President Uhuru Kenyatta behaving more and more like his political father, Moi. Threatening and shutting down media houses is DICTATORSHIP! President Uhuru, your attempt to follow in the footsteps of dictator Moi, will totally fail. The year is 2018 and we shall not allow Kenya to slide back to dictatorship and censorship. Leave the media alone!” The Kenya Editors Guild also put out a statement expressing concern on the trend of media intimidation taking toot in the country. “We would like to state it with all the clarity we can that the media is not an actor in the ongoing contest between Jubilee and NASA over the outcome of the last General Election. The Media remains a mere messenger and a chronicler of any events happening in our country,” the statement read in part, signed by Linus Kaikai, Chairman of Kenya Editor’s Guild. The swearing in of Raila Odinga is likely to increase political tension in a country still recovering from a deeply divisive election. As soon as the election ended, debates and maneuvers on Kenyatta’s succession had already set forth. Constitution of the current cabinet has reportedly caused a rift between Kenyatta and his deputy and recently, Odinga told Ruto that the deputy needed him as the two strategize for the 2022 election.

Feb 02 - 08, 2018

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rwanda

Kigali City

Rwanda records US$1.67bn in investments in 2017 Over 38,261 jobs to be created in eight sectors By Isaac Khisa

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wanda recorded a 30.7% growth in investment to US$1.675bn last year compared with the previous year, data from the country’s promotion agency, Rwanda Development Board (RDB) shows. According to the data, three sectors – construction and real estate, mining and infrastructure – attracted more investments, contributing US$637.66million, US$267.34million and US$202.66 million or 38%, 16% and 12% of the total investments, respectively. Bugesera Airport Company Ltd  registered the largest individual investments worth US$ 398.68 million followed up closely by Ignite Power Rwanda Ltd worth US$ 113.84 million, Gasabo Investment Company (US$ 89.02 million and African Panther Resources Ltd ($USD 54.02 million).  Kigali View Hotel and Apartment Ltd registered US$53.2 million worth of investment. Of these, Foreign Direct Investment dominated the level of investment, contributing US$1.041billion or 62.26% of all investments. In 2016, FDIs contributed investments worth US$ 650.4 million.

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This was followed by local investments that stood at US$ 470.98 million, down from US$479.5million in the previous year while joint ventures – local and foreign investors – registered investments worth USD$ 160.47 million. Commenting on the performance, RDB Chief Executive Officer, Clare Akamanzi, said the country’s investment has increased from US$800million in 2007 to US$ 1.675bn in 2017, signalling the country’s ability to attract and retain investments. “This is evidence that Rwanda is being seen more and more as a great place to do business,” she said adding that RDB’s ambition is to create 150,000 off-farm jobs per annum. She expressed confidence that the newly recorded investments in the East African nation would have an immediate impact on the employment prospects of the young population. RDB hopes that 38,261 jobs are to be created in the last year’s investments in infrastructure, services, manufacturing, tourism, construction and real estate, agriculture, Information, Communication and Technology, and mining sectors. This represents an increase of 184% from

2016 where 13,477 jobs to be created were registered in the eight sectors. This comes at the time Rwanda has consistently recorded improvements in the ease of doing business, with the latest World Bank report on the Ease of Doing Business Index, indicating that Kigali had the biggest jump, improving 15 places from last year’s rank of 56 to 41. This is attributed to RDB’s  introduction of  a One Stop Centre for investors, which provides information and services to guide investors through the key steps of starting a business such as registration, licenses, immigration, land, utilities, environmental clearances and tax and mortgage registration services.  RDB helps investors to sort out simple and complex challenges they encounter along the way and provides any guidance required. Also, RDB has introduced investor engagement platforms such as the’ Investor Open Day’ every Friday as well as ‘CEO Forum’ four times a year where RDB senior management meets and engages with business leaders.

rwanda

Airtel’s Tigo Rwanda take-over

The merger will boost the telecom’s customer base to 5.9 million By Agencies

India’s telecom firm, Bharti Airtel, has received regulatory approval to acquire Millicom International Cellular’s Rwanda unit, Tigo Rwanda

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he Sunil Mittal-led mobile carrier said on Jan 23 that it had received approval from the Rwanda Utilities Regulatory Authority (RURA) to acquire Millicom’s Rwanda subsidiary. Last December, Bharti Airtel had inked a definitive pact with Millicom International under which Airtel Rwanda would buy 100% equity interest in Tigo Rwanda, and in turn, consolidate the Rwandan mobile market by putting Airtel as a strong No 2 carrier by revenue in the African country. Millicom’s move to sale Rwanda’s operations was in line with its strategy to focus on providing advanced fixed and mobile data services in Latin America, which contribute 86 % of its revenue, according to Millicom’s website. “The merger will result in the only negative Ebitda operating company joining 13 positive Ebitda operating companies in Africa,” Bharti Airtel said in a statement.

Meaning, all 14 Airtel units in Africa will become Ebitda positive, going forward. The Airtel-Tigo merged entity will have the largest customer base in Rwanda with 5.9 million subscribers. It will also have the largest sales and distribution network in Rwanda. The combined networks of the two companies will serve customers with voice/data services, global roaming and mobile banking services, Bharti Airtel said, adding that subscribers will not be required to change their existing Tigo telephone numbers and existing Tigo cash services will not be affected. Statistics released by RURA in Oct 2017 shows that Tigo had 40% market share of Rwanda’s total 8,675,826 active subscribers, compared to MTN’s 41 % while Airtel had 19 %. Bharti Airtel has been performing well in Africa, having reported a profit of US$76

million in the December quarter compared with a loss of US$93 million a year earlier, helped by a surge in data traffic and Airtel Money transactions. Airtel’s Africa revenues too have grown 5.3% on-year to US$783 million in three months ended December. Over the years, Bharti Airtel has been bolstering its market position to become a key player in the continent with in-country acquisitions. In the past, it has acquired assets in Uganda (Warid Telecom) and Congo B (Warid), Kenya (yu Mobile) and consolidated operations in Ghana (Millicom). In a recent interview to Economic Times, Bharti Enterprises Chairman Sunil Mittal said that the company would look at consolidation in countries like Kenya, Rwanda and Tanzania through mergers, acquisitions or both, even as the overall Africa business was turning a corner.

Feb 02 - 08, 2018

23

Pioneer buses at the Mandela National Stadium parking yard.  INDEPENDENT/JIMMY SIYA

O

By Isaac Khisa

n the road leading to the Western gate of the Mandela National Stadium, located about 8 kilometres away from Kampala City Center on the Kampala-Jinja highway, one would easily observe that something wrong. Nearly three dozens of Pioneer Easy Buses with no wheels are parked at the Stadium’s parking area, as a section of mechanics clad in oversized green and blue aprons are carrying out inspection and repairs to the buses. Some of the buses, however, appear to be degenerating towards the irreversible status. A section of the company’s staff told The Independent that lack of spare parts on the local market is one of the reasons behind the grounding of the orange-coloured buses. “The problem with these buses is that there are no spare parts sold locally,” sources told The Independent. “Management has to import all spare parts from China – where these buses were purchased.” The sources added that the bus 24

Feb 02 - 08, 2018

Rough terrain for Pioneer Easy Bus Creditor plan to auction buses to recover Shs151m debt company is increasingly facing stiff competition from the 14-seater commuter taxis that have since reduced their fares to match Pioneer’s fares. And to make the situation even worse, there is a looming auction of at least 26 buses to recover Shs141million owed to a business man, Charles Mushabe. Bonnie Rwamukaaga, a bailiff at Libra Auctioneers, told The Independent in an interview that Mushabe and his lawyers, Lex Uganda Advocates and Solicitors, are working on the paperwork required by court to have the company’s buses attached

and auctioned. He said the move follows the company’s inability to defend itself in court after securing a temporary injunction last year for the then planned auction. However, Esther Kemigisha Tayebwa, a senior partner KNT Advocates and the PEB legal advisor said she was yet to receive an update about the company’s pending court case. The company’s woes stem from a 2014 judgment delivered by Nakawa Court ordering it to pay businessman Charles Mushabe Shs141 million for

business

the supply of spare parts. James Kasiita, the company’s information systems analyst, who also doubles as the public relations officer, told The Independent that the 2-year closure of the PEB at the onset of its operations and the subsequent requirements to remit taxes and dues to Uganda Revenue Authority and Kampala Capital City Authority affected its cash flow. “Regular payments of taxes to URA and KCCA affected our cash flow to maintain buses,” he said. “We also have to pay our staff totalling 150.” URA impounded 100 buses belonging to PEB in 2013 – just after spending a year in business – for failure to clear outstanding tax debts amounting to Shs 8 billion. Though the company was allowed to operate 10 months later, after negotiation and an agreement to pay between Shs270million and Shs300million monthly within 24 months, plans to resume operations early 2014 were put on hold, pending a review of a contract signed with Kampala Capital City Authority. This was intended to accommodate the interests of authorities in Mukono and Wakiso Districts as the Pioneer buses were to ferry passengers to and from the two districts as well. And while a fresh contract was eventually drafted and agreed upon by all the four parties, it could not be signed until the government had revised its Road and Public Safety Act to regulate the activities of city commuter buses. Currently, PEB ply around a few parts of Kampala City. These are Kampala-Kireka-Banda-KyambogoNakawa-Bweyogerere route; KampalaLuzira-Kitintale-Bugoloobi route; Kampala-Kajansi and KampalaNamugongo routes. It charges range between Shs 500Shs 1, 000 depending on the distance covered by the passenger. “We operate three trips a day on each route yet we would be making five if we had a special lane for our buses as agreed in the contract with KCCA,” Kasiita said, adding that full implementation of the contract would have enabled the bus company generate more revenue. Though the executives were cagey to disclose the company’s revenue performance, The Independent analysis shows that each bus carrying 61 passengers at full capacity per trip

would generate about Shs 360,000 per day, translating into Shs 9.36 million per month and Shs112.3million per year excluding taxes and operating expenses. This implies that if all the 100 buses are in operation, PEB would be making at least Shs11.2billion in revenue per annum. Efforts to get a comment from KCCA Publicist Peter Kauju or his assistant Robert Kalumba on the issue of special lanes allocated to PEB were futile as they could not pick our repeated calls. Previously, KCCA officials have said the process to give PEB exclusive routes would be executed in collaboration with the Ministry of Works and Transport as one avenue of ensuring order in public transport in the city prevail. Towards the end of 2013, there were reports that President Yoweri Museveni had been approached by a section of people with interest in PEB business for executive advice on this matter. He was quoted as saying that he would support the proposal by KCCA to give exclusive routes to the company. It is not clear up to now why this move has not seen light of day. Is this a potential cause for PEB’s troubles or the entire business strategy was wrong?

Timelines of Pioneer Easy Bus troubles  12 Mar 2012: PEB starts  





 



Brains behind PEB

Launched in 2012, the Pioneer buses were welcomed by city residents as they were seen as a long awaited solution to reducing public transport costs and eliminating disorder created by the 14-seaters. Prior to its financial troubles, PEB had purchased 100 buses and planned to import more units progressively, until it met the 522 units that it agreed upon with the KCCA. First incorporated in 2005, the company lists former Privatization Minister and National Resistance Movement (NRM) historical cadre, Matthew Rukikaire and businessman Fred Senoga as chairman and secretary respectively, according to the registrar of companies. Rukikaire owns 45.04 % shares in the company. The other shareholders, according to available records, are former Premier Kintu Musoke, Former Deputy Premier Eric Adriko, Faizal Kasujja, a banker, Muhammed Kasajja, a real estate developer and Ida Wandendeya.







 

operating in the Kampala City 13 Mar 2012: Lord Mayor Erias Lukwago calls PEB’s operations illegal 10 Oct 2012: Pioneer bus workers strike over lack of pay; then later called off strike 20 Oct 2012: Pioneer bus attempts a move to partner with UTODA to remain in business 19 Nov 2012: PEB threatens to end operations in press release after a standoff with city and government authorities over contract issues 30 Dec 2012: Parliament wants Pioneer Easy bus deal reviewed 6 Feb 2013: Parliament orders KCCA to sign new agreement with PEB, Wakiso and Mukono urban authorities 14 Feb 2013: URA executes a warrant of distress against Pioneer Easy Bus by impounding all their buses due to failure to pay tax arrears amounting to Shs 8bn. They threatened to auction the buses 16 Feb 2013: Wakiso and Mukono authorities demands the Central Government to pay over Sh940m lost during the period PEB had operated in their areas 18 Feb 2013: PEB executives claim the company has lost Shs13.2 billion because KCCA has not fulfilled its contractual obligations. 21 Dec 2013: URA allows PEB to resume operations for the first time in 10 months after reaching an agreement over tax arrears. 2 May 2015: PEB resume operations 18 May 2017 – to-date: Kampala High Court’s Execution Division orders attachment of 26 buses to recover Shs151 million owed to business man, Charles Mushabe.

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business

Museveni addressing participants at the Forum on Jan.23 at Sheraton Hotel. 

Independent/J.Businge

Uganda could hire expatriates for oil jobs

Kigumba Petroleum Institute has trained just 133 locals with certificates and diplomas in oil and gas By Julius Businge

U

ganda will start investing in the oil and gas infrastructure ahead of the planned production in 2020 but there are indications that majority of the work will be undertaken by expatriates. This is based on the fact that the Uganda Petroleum Institute, one of the institutions mandated to impart skills to the local population interested in working in the sector, has so far trained and graduated just 133 Ugandans with diplomas and certificates. Makerere University, which introduced undergraduate courses in oil and gas in 2009, seems to have done little to address the human resource gap. Speaking during a forum dubbed ‘skilling and local content forum’ organized by Uganda Chamber of Mines and Petroleum (UCMP) in collaboration with the Ministry of Education and Sports on Jan 23, President Yoweri Museveni, said the number is ‘too’ small. He blamed the current situation on the low level of student enrolment in science disciplines. “Many Ugandans are trained in humanities but there is a sizeable group who do science and technical courses,” he told the audience. Energy Minister, Irene Muloni, however attributed the limited number of trained Ugandans in matters oil and gas to the high costs involved in the international certification, lack of internationally accred26

Feb 02 - 08, 2018

ited training centres and a mismatch of the domestic curriculum to the international industry demands. Oil and gas activities are expected to create at least 167,000 jobs at their peak during field development as well as pipeline and refinery construction, according to Muloni. Of those, 14,000 will be direct jobs, 42,700 indirect and 105,000 induced jobs. In terms of competences, 15% [of the 167,000] are estimated to be professionals (engineers and managers), 60% technicians and craftsmen and 25% unskilled laborers.

Way forward

An official from the petroleum institute said they plan to introduce six more courses related to oil and gas this year so as to attract more students. Muloni said the government would continue to push for skills development programs to close the identified gap together with development partners. “It is important that we prepare the country’s population for these new opportunities that are emerging in the sub-sector especially at the next stage of Engineering Procurement and Construction (EPC) scheduled later this year,” she said. President Museveni, however, said the activities in oil gas sector will go ahead as planned with or without the local human resource. “If we don’t have our people immedi-

ately (to do the jobs), we can go ahead and bring the ones near us…” he said. Museveni said the other options are; the government would do a cost-benefit analysis on allowing oil companies establish training institutions and thereafter get back their returns [investment] by deducting on revenues to be paid to government. The other option is to have as many private sector players starting institutions to train oil and gas skills to Ugandans who would either pay for themselves or government would foot the bill, he said, without giving the timelines for possible implementation. Elly Karuhanga, the chairman of UCMP said the government needs to wake-up, use the legal and policy frameworks in place to urgently equip Ugandans with skills so as not to allow oil companies import labour.

Quick facts

 Uganda has confirmed 6.5 billion bar-

rels of oil in about 20% of the potential area of which about 1.5 billion barrels is recoverable  Uganda expects a total investment of about US$15 -$20bn in the sub-sector in the next 3-5 years. These include about $8 billion in the upstream development, $4 bn in building the crude oil export pipeline, $3.5 bn in building a refinery and other investments in support infrastructure like the airport, roads

Executive Style

Uganda Clays pegs growth on innovation How would you describe business at Uganda Clays as we speak? alking about 2017, the key thing to note is that we had a fair year. We grew but not to our expectations. We did better than the previous year – in terms of revenue growth, cost reduction, gross margin and on the overall profitability of the business. We would have grown better but the economy was not good in the first half and our clients had to prioritize and or post-pone buying decisions of our products. This year, we started reasonably on a fair note. We opened up an outlet in Arua, Lira, Gulu and Kabale. This year, however, we have started the plan is to go into deep West and in the other areas. We will also focus our business in Kampala and Wakiso which we believe have a high per capita income.

George Inholo is the managing director of clay products maker, Uganda Clays Limited. He spoke to The Independent’s Julius Businge about their operations and industry issues

T

How has your business strategy dealt with the growing industry competition since you took over as MD in 2014? There is no rocket science on this. The key thing is visible leadership. We are selling clay products. The biggest agenda for us as a business is to increase our top line, drop costs, motivate staff and raise the bar on control environment and ensure the health and safety of our staff, our customers and the community where we do business. Yes, we feel the competition; you cannot run away from it. But we shall uphold our quality agenda and ensure that our products are available and distributed on time and rightly priced. We will continue to have customer centric attitude in addition to dropping waste in the company. In addition, we are the only company that is ISO certified in the clay business. We still

feature amongst the top 100 best taxpayers and we have improved salaries for our staff and people feel positive change in the company. How far has NSSF gone with converting the debt that you owe them into equity? That is work in progress. In principle, both the Board of NSSF and that of UCL agreed that equity swap will take place. The process is not as simple as you talk about it. The plan was to have it done last year but we had many priorities…but I am very optimistic that this year, it will be put to rest. There is a general belief that our economy will get better in the short-to medium term– how are your business plans pegged on this optimism? While the forecasts are there, we don’t use them predominantly to peg our operations and projections. There is what we call organic growth; but there is also growth that you can cause by doing certain things like road shows to influence demand.

We can’t rely on organic growth because it can only deliver single digit. What is the update on your plans to have physical presence in the regional markets? We already have people on ground that distribute our products in Rwanda. We are also doing business in Kenya, Tanzania and South Sudan. Exports to these markets account for about 3% of our sales per year. In the short term that is what we are doing there but in the long term we would love to have presence there. There has been talk about the ageing factory facility at Kajjansi and the underutilization of the Kamonkoli plant. What has changed of late? Last year we had steady production because we brought in the requisite spare parts, replacing the old ones. We spent close to € 300,000 (Shs 1.35bn) on that. We ran the factories efficiently and this ensured that we did not run out of stock. This year, we will

bring in more parts basing on the available need. What about the raw materials especially clay? We don’t have an issue with clay reserves. We are located in Kajjansi because our raw material that is underneath. We have enough of it for Kajjansiand Kamonkoli. Every year we do projections. The clay reserves that we have can last for over 20 years. Note that we always buy more land to ensure that we have enough clay for our business. What should the market expect from UCL in 2018 and beyond? We want to grow our business by double digits so we give value to the shareholder. We are going to do innovations – we want to go into other colored/glazed kind of tiles, clay paver. We will embrace passion to excel in everything that we will choose to do. We will also do a lot of marketing, geographical expansions by opening up outlets which will be stocked adequately at all times. We are going to put in place a robust advertising program. We will also have a builder’s academy that will bring architects, property developers, engineers and people in the real estate to help sharpen their knowledge about the industry and our products. We will also raise our bar on the corporate side when it comes to designing strategies to serve them well. We maintain the proven slogan that when you build using our products, you build for a life time unlike other roofing products. We are also going to raise our bar on health and safety; these are simple things but they mean a lot. We shall also do a lot of corporate social responsibility especially with coffee farmers because we use coffee husks in our firing process.

Feb 02 - 08, 2018

27

business telecom

csr

Airtel unveils 3G internet countrywide

DStv Eutelsat Awards winner to view rocket launch

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irtel Uganda has started the New Year with the launch of 3G internet to all its sites across the country. Speaking at a press conference in Kampala on Jan.24, the company’s Managing Director V.G Somasekhar, said that the upgrade in technology to 100% mobile broadband means that all their customers will have access to high speed internet regardless of their geographical location. “Today is about internet for everyone; it is about how we unlock, refine and make data available for everyone,” Somasekhar said. “Data is a new asset class, people who have it are going to be empowered, countries that have it are going to be rich.”  The company invested US$50 million in FY2017/18 in its broadband services. Currently 154 sites are being rolled out and an additional 165 sites are under implementation. It has 10 million subscribers, out of that 30% are actively using its internet, according to Somasekhar. 

Previous winners of the awards

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he 2017 DStv Eutelsat Star Awards competition is back. The awards are open to all learners from secondary or combined

schools on the continent where MultiChoice Africa maintains operations. In the awards seventh edition, the winner of the essay competition will travel to France and

Hospitality

Latitude Hotels to open new property in Kampala

H

otel chain, Latitude Hotels Group, plans to open up a new hotel facility in Kampala as it seeks presence in the East African region. This follows the opening of similar facili-

ties in Malawi and Zambia in 2012 and 2014, respectively. While no official opening is yet to be confirmed, reports indicate that the hotel to be called ‘Latitude 0‘ with 52 rooms, will start

operation in September. Reports also indicate that the hotel group plan to set up similar facilities in other African cities including Addis Ababa, Nairobi, Kigali, Dar es Salaam, Maputo and Harare.

industrialisation

Kenya bets on biotech cotton to create 50,000 jobs

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he Kenyan government is betting on mass production of genetically modified cotton to create 50,000 jobs and generate Sh20 billion in apparel export earnings this year as part of President Uhuru Kenyatta’s final term economic revival plan. 28

Feb 02 - 08, 2018

The plan, which includes policy review and crafting of new incentive schemes, is also expected to generate 10,000 jobs in the apparel sector, according to Business Daily, a local newspaper. The Treasury Secretary, Henry Rotich, says in the draft Budgetary Policy Statement that the plan will start with the training of 50,000 youth and women to engage in biotechnology (BT) cotton production. By the end of 2018, the State expects to have expanded acreage under cotton to 200,000 hectares, up from 29,000 currently. This development comes at the Uganda is still dilly-tallying with the enactment of the biotech law that will facilitate the safe of the technology in a number of crops including cotton, bananas, potatoes and cassava.

see a rocket launch into space and the student who designs the best poster will win a trip for two to South Africa and visit the South African National Space Agency as well as exploration of several heritage sites. Students can enter the competition by writing an essay or designing a poster based on the sixtieth anniversary since the first satellite, Sputnik, was launched into space. The schools attended by the two winners will also receive a DStv installation, including a dish, TV, decoder and free access to the DStv Education Package.

trade

UNBS to spend Shs 22bn on food lab

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he Uganda National Bureau of Standards (UNBS) plans to build a Shs 22bn modern food testing laboratory in in Bweyogerere, a Kampala suburb, to check distribution and sale of harmful foodstuffs in the country as well standardise Ugandan food exports. “We expect to start construction soon after signing the contract with the contractor because we are done with the procurement process,” UNBS Executive Director, Ben Manyindo said. “We hope that in the period of 18 months the facility will be in place.”

Ben Manyindo He said the construction of the lab is part of UNBS master plan of having modern infrastructure to enable it carry out its mandatory tasks. This comes at the time the country is awash with reports of butcher operators using formalin and other deadly chemicals to preserve meat and keep away flies.

business

BATU’s tax reprieve in Uganda BY Isaac Khisa

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(L-R) Express Shipping and Logistics (ESL) Merreck Getugi, country manager, Silvester M. Kututa, Managing Director/ CEO and Martin K. Ikiara, group CFO briefing the press on Jan. 25 during their office opening ceremony in Ntinda to expand their services to Uganda and the region.   INDEPENDENT/JIMMY SIYA

Civil Society organization members, Baliraine Hakim, (R) director Eastern and Southern Africa small scale Farmers Forum, Bridget Mugambe, (M) of Alliance for Food Sovereignty in Africa and Agness Kiraba of Food Rights Alliance (FRA) briefing the press on their joint statement against genetically modified organisms (GMOs). They said that labeling of GMOs sh’d be inclusive with clarity on how it sh’d be done to cater for all consumers.   INDEPENDENT/JIMMY SIYA

Uganda Breweries Managing Director Mark Ocitti, (L) hands over a 15 years’ service award to Moses Mukama at the brewery on Jan. 22, during a ceremony to recognize and award the brewery’s longest serving employees, some of whom have been there for over 30 years.   INDEPENDENT/JIMMY SIYA

roducts of cigarette maker, British American Tobacco (BATU) manufactured at its Kenyan subsidiary in the East African Community will now be exempted from Uganda’s excise duties. This follows a ruling in the East African Court of Justice (EACJ) on Jan 25, barring the Uganda revenue Authority from imposing the tax on the company’s products from the neighbouring state due to discriminatory rates, pending the case hearing and determination. The ruling was delivered by Principal Judge, Lady Justice Monica Mugenyi. BATU filed the case at EACJ in last August, claiming that the new excise duties imposed on cigarettes imported from Kenya into Uganda were discriminatory and in contravention of regional customs regulations. BATU claims Uganda enacted the Excise Duty Act No. 11 of 2014, which made provision for an excise duty on cigarettes uniformly applied to all such

goods originating from any of the EAC Partner States. But in 2017, the said Act was amended to creat a distinction between locally manufactured goods and imported goods. Consequently, URA imposed a higher excise duty on goods imported into Uganda from Kenya and imposed a lower duty on goods manufactured in Uganda, the company claims. The EACJ also took the view that, the justice of the matter dictates that the respondent would suffer less injury from being temporarily prevented from exercising its right to collect the extra excise duty billed to the applicant if the interim orders sought in the present application were granted, than the injury the applicant stands to suffer as the consequence of paying the additional duty. BATU recorded a profit of Shs7.8 billion in 2016, down from Shs20.2 billion at the end of 2015 citing increased taxation, discontinuation of the tobacco leaf export businesses and a tough economic environment.

Weekly share price movement (Jan. 24) Security BATU BOBU CENT DFCU EABL EBL JHL KA KCB NIC NMG NVL SBU UCHM UCL UMEME ALSI

Jan 24 30000 115 1,631 680 8,758 1,524 17,730 592 1,577 12 3,758 515 29 134 29 400 --

Jan 17 30000 112 1,579 681 8,401 1,491 17,650 582 1,579 12 4,024 515 29 141 29 400 -Feb 02 - 08, 2018

Movement 00 2.6 3.3 0.1 4.2 2.2 0.5 1.7 0.1 00 6.6 00 00 4.9 00 00 -29

COMMENT

By Simon P. Kasyate

UEGCL’s strategic plan Launched in December 2017, the 5-year plan is to ensure reliable, affordable electricity

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he renowned English strategic thinker and consultant, Dr. Max McKeown, in one of his best seller books on strategic planning titled `The Strategy Book’, opines that: “With a clever strategy, each action is selfreinforcing. Each action creates more options that are mutually beneficial. Each victory is not just for today but for tomorrow.” The words sound sophisticated, but their application applies even to the most mundane of our actions. Problem is, often we just do things without a care to plan on what the results of our actions are and how better they could be if we applied a little more thought. It is also important to place an objective measure of the result. Take for example, choosing to work harder at your job by putting in more hours gives the general feeling that the rewards will be heavier and come quicker. But what is heavier and what is quicker? What is the measure of these? And so what, with heavier and quicker rewards? It’s at the point of answering these questions that one realises the need for a strategic plan in the first place. Slightly over the last three years, the mandate and obligations of Uganda Electricity Generation Company Limited (UEGCL) changed from mere concession management of the Nalubaale-Kiira hydropower complex to the development of new electricity generation facilities as well their operation and maintenance. This meant it was not business as usual and hence the need for a strategic plan. Even more, the assignment as implementing agency for the flagship government projects of Karuma (600MW) and Isimba (183MW) meant that UEGCL had to make its governance structure as well as its operations more systematic lest it falters on this noble but uphill task. 30

For the period 2015-2017, there was a strategic plan largely to address the direction the company was to take to deliver on the new hydropower plants. Subsequent to this UEGCL embarked on the formulation of a new 5-year Strategic Plan (20182023). The plan has been formulated through a rigorous and consultative process, involving various stakeholders, and the result is a concise document that enshrines the aspirations of the Company over the next 5 years. Key among the milestones for the next 5 years are the completion of the on-going flagship projects, and the commencement of operations and maintenance in line with the Government policy to provide employment, and ensure affordable Tariffs through least cost-of-energy generation. The cardinal pillars of the plan are to ensure; availability, reliability, affordability and the delivery of Quality electricity services to the people of Uganda. This strategic Plan was launched in December 2017. It is imperative for any organisation to have a longterm outlook if it is to succeed in its aspirations. It is important to note that UEGCL as a Government agency has learnt and puts into practice the Government’s policy framework which is guided by a five year National Development Plan, which is part and parcel of the Governments Vision 2040. The UEGCL Five Year Strategic Plan takes into account the aspirations of the Government, key among which is the delivery of the Key Flagship hydropower projects of Karuma and Isimba, while at the same time improving the operational efficiency of the Kiira/Nalubale hydropower complex. With a vision “to be one of

Feb 02 - 08, 2018

the leading power producers in the Great Lakes Region’ UEGCL can’t afford to transact business in a manner akin to ‘beating about the bush’. Even more, with a mission ‘to sustainably generate reliable, quality and affordable electricity for socio-economic development,” UEGCL needs nothing short of a robust strategic plan and the commitment to execute it to the letter if the Mission must be achieved and the Vision realised. The pillars of this new strategic plan are operational excellence, stakeholder and reputation management, sustainable growth and engaged workforce. Unpacking these thematic areas is at the core of executing this strategic plan

and takes impeccable leadership both at Board and management levels. UEGCL is not lacking in the composition of these two leadership levels. Drawing from Dr. Max Mckeown therefore, each theme in our strategic plan above rakes in individual benefits but the collective sum of these benefits are mutually reinforcing and are not for the short term scores but rather long term gains. We remain confident and determined to at worst achieve and or at best, exceed on the realisation of this, our new 5-year strategic plan. Simon P. Kasyate is the Manager, Corporate Affairs UEGCL.

The Management & Staff of Ham Enterprise (U) Ltd, congratulates H.E. The President of the Republic of Uganda, Cabinet Ministers, Members of Parliament and all the people of Uganda as we celebrate the 32nd NRM Anniversary.

Plot 923. Makerere Hill Road Ham Towers, Makerere 4th floor, Suite 02 | P.O.Box 2183, Kampala. Uganda Tel: +256-414 662 855 | Mob:+256-772 885 155, +256 - 772 - 507 088 | Email: [email protected] Website www. hamenterprises.co.ug

COMMENT

By Joseph Were

Museveni’s decision on Kayihura Unlike what the public is hoping for, ending criminality in the police is not the President’s biggest concern

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ollowing recent revelations of shocking criminality in the Uganda Police Force, Inspector General Kale Kayihura’s number is up it appears. Equally feeling the chill wind must be President Yoweri Museveni who must make at least three serious decisions regarding the force’s politics, loyalty, and budget. Museveni knows that 90 percent of police officers are not criminals, although the tiny 10 percent pollutes the air so badly that it is difficult to sniff the strawberry from the garlic. However, although the recent arrest of Kayihura’s ally; one Abdullah Kitata, the obnoxiously noisy leader of the so-called Boda-Boda 2010 gang set off a heavy stench, treating the other security agencies like the Internal Security Organisation (ISO) and the Chieftaincy of Military Intelligence (CMI) which were dreaded names in previous years as angels is a mistake. Their current leaders; including Security Minister Henry Tumukunde, CMI boss Abel Kandiho and ISO boss Bagyenda Kaka cannot be anticriminality altar boys. The police entanglement with the underworld has tainted Kayihura’s image and that of the police so badly that they need to be scrubbed using a very strong brush and a detergent that is ten times stronger than JIK. But Museveni knows that Ugandans have short memories and he has long term plans. While many people are surprised at the level of police criminality, Museveni possibly is not. So while many commentators are focusing on how to end the criminality, Museveni most likely isn’t. The view that Ugandan police stations are dens of criminals might be news to many but not Museveni. His intelligence network has furnished him with even the scariest bits; that the police are hiring out guns to criminals, aiding drug, ivory, and human traffickers, and using fake charges in extortion rackets and torture and killing suspects. Museveni must have seen a video that aired recently of policemen battering an NBS TV journalist reporting on criminals who confess to be police collaborators in crime. One collaborator, ex-convict Paddy Sserunjoji alias Sobi, in December shook airwaves when he confessed on TV to killing people. Another criminal had told IGP Kayihura the same thing at a suspects’

parade at Katwe police station in Kampala before he was ordered to shut up. Police collusion with the kiboko squad, Kifeesi and other goons is well documented. Museveni said as much after the murder of then AIGP Felix Kawesi. So police criminality is not news to Museveni. He could have acted already if it was his main concern. Instead, he must be devising a strategy that ensures the force remains a political tool of his government, that the army of boda-boda and other urban youth remain firmly loyal to NRM, and that the Shs530 billion budget of the police force does mainly NRM work. If Tumukunde, Kandiho, Kaka, or anyone else can guarantee these three items for Museveni, they will oversee the police. Museveni is not focusing on merely removing Kayihura because that is simplistic and will not solve the problem. That is because Kayihura is a problem only operationally. Even here, the bigger problem is systemic, and a result of our society and politics. For Museveni, Kayihura is politically impeccable. So Museveni will calculate that generally speaking, removing a police boss like Kayihura per se does not solve operational problems because the patterns of criminality in the Uganda Police force can be seen all over the world; from London to New York, Brazil to Mexico, Egypt to South Africa, and Nigeria. In fact, compared to others, the criminals in the Uganda police are babies. Consider this: Hungary gave its police the biggest pay rise in history but corruption persisted. It sacked 240 but corruption remains. In Argentina the police have been involved in terrorist bombings, murder of journalists, drug trafficking, cattle rustling and more. Police officers in Brazil are hit men for criminal gangs and aid drug traffickers. In one incident 42 policemen were paid US$1000 for each person they killed on behalf of criminal gangs in the city of Rio Branco. Another 150 policemen were hired by powerful landlords to murder hundreds of squatters on land. The cases were quashed in courts after judges were bribed. In Los Angeles, USA, up to 70 police officers went on trial for routinely beating and shooting suspects, planting fake evidence, and lying under oath. In New York City, USA, two police officers sodomised a man with a stick at a police station. The case was

reported and ignored. So the criminality in the Uganda Police Force is not unique. It will continue under new leaders or worsen because what the police require operationally is not individual change at the top but organisationwide change right to the bottom. Kayihura came to the force as a cerebral, clean operator. But he found a police force that recruits many wrong elements from our sick society, trains them poorly, and promotes some on the basis of technical know-who. The force is plagued by low pay and lack of resources, functional accountability and disciplinary mechanisms. It finds and recruits easy accomplices in crime in other state agencies and department; especially the courts. But the bigger problem is that professionalism is not demanded. Only political loyalty to Museveni and relentless effort to preserve Museveni’s power are required. This foments a culture of indiscipline, impunity, and total lack of professional standards. Kayihura initially succeeded in turning the police around; especially when he was propagating the concept of community policing. He improved facilities; including transport, regular pay, training, housing, and more. However, the project started stuttering when short-term politically expedient moves and lack of resources led to more reliance on criminal militias to catch other criminals or defeat opposition protests. Of course no police officer likes what is going on and the public expects change. Unfortunately, things are no so straightforward for Museveni. Under Kayihura, the police force has got a huge budget. Museveni cannot withdraw it overnight. Yet he cannot let it fall into untrustworthy hands. As Niccolo Machiavelli wrote in `The Prince’: “It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage, than the creation of a new system. The initiator has the enmity of all who would profit by the preservation of the institutions and merely lukewarm defenders in those who would gain by the new one.” This means Museveni will reflect deeply about the individuals to select to sort out the police. It means criminality in police will remain because Museveni’s decision will be political, not operational. Feb 02 - 08, 2018

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By Flavia Nassaka new condom said to be more pleasurable is undergoing tests to be used in Uganda. The ‘panty condom’, as it is called, has already been given a greenlight by the Uganda National Council for Science and Technology. The condom is a combination of lingerie and a contraceptive made of polyurethane and intended for a one time use. It is anti-allergic and has been made with thinner than usual layer meant to make one have a no-condom feel, says Dr. Moses Muwonge, the Executive Director SAMASHA Medical Foundation, a local nonprofit promoting the condom. Made by a Columbian manufacturer, Innova Quality, the condom is likely to hit the market by October, according to Muwonge. This will be after six months of acceptability studies expected to start at Makerere University soon. Once they are on the market, Muwonge anticipates that Uganda will be the hub of the device on the continent because his non-profit has secured a contract to supply the condom to the whole of Africa. Muwonge is excited that women will this time have something that puts them in control. “Women are frustrated by men who don’t want to use condoms,” Muwonge told The Independent, “We are now telling them that don’t remove your panty if you are not sure your man has condom. This panty is your security.” He explained that one can wear the panty all 32

‘Panty Condom’ hits Ugandan market Experts say it is more pleasurable and puts power in the hands of women day and only expose the device when about to have intercourse. “You only have to flip the slit”, Muwonge says as he demonstrates how it is used. The panty has an opening which exposes the condom that looks no different from the current male condom. Once exposed, the condom unrolls on the penis during penetration. A 2009 study on female

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condom use in Uganda by the Ministry of Health revealed that female condoms were mostly being taken up by sex workers but Muwonge is not targeting these. He is aiming for a stylish corporate lady, a young woman or an adolescent girl. This is partly why the condom is in form of a G-string, a type of panty popular among that group.

This group is also the most affected by HIV in Uganda. Preliminary results of the Uganda Population based HIV Impact Assessment survey released last year show prevalence among this group of 15 to 24 years was at 7.6% compared to males at 4.7%. But Muwonge says the new condom targets men too. For him, once men realize that if they do not

health carry a condom, a woman will have one they will also start carrying one. In addition he says, the panty looks good for both sexes.

‘A search for a more pleasurable condom’ Vastha Kibirige, the Condom Coordination Officer at Ministry of Health, who has been in the condom business for more than twenty years is as excited and full of anticipation as Muwonge. This is exactly how Kibirige and her colleagues at PATH an NGO that specializes in health innovation felt in 1998 when a ‘Fermidome’ also known as FC 1 was introduced in Uganda. “We said finally women have got something they can control” she said,” we got a million condoms and divided them. We planned to give out half through the public sector and half through social marketing.” But he says that most of the women looked at the condom—a large slippery device with a ring at the bottom-- as something weird. “The attitude is already very bad,” Kibirige says, “Someone looks at your face and says this thing is terrible. And, yet it is a life saving commodity”. However, Kibirige is now optimistic that the panty might work because, he says, the challenge has always been finding a more pleasurable condom. Uganda has about 30 brands of condoms on the market. A condom market survey done by the Ministry of Health in 2016 shows that while there were 19 brands of condoms on the market in 2011, they had risen to 28 brands by 2016. At the end of 2017, another contraceptive giant DKT International based in the US joined the market with its KISS condom targeting the middle class. In total, the market volume has increased from 89million condoms in 2012 to 179million in 2016.

‘Only 19% can use condoms well’

However, Kibirige says that while all these brands are on the market, condom use amongst both men and women appears either stagnant or on the decrease. Between 2011 and 2016, the percentage of males and females using condoms increased slightly. In 2016, 21.5% of males and 21.3% of females reported using a condom the last time they had sex compared to only 19% of males and 12% of females five years prior. Among the unmarried youth while the figures

were higher at 41% for the males and 54% for the females in 2016, there was a decrease from 62.7% among males in 2011 and yet the percentage of females remained unchanged even after five years. Overtime, Kibirige says he has learnt that for a condom, whether male or female, to be used, there needs to be a lot of promotion activities done. She says condom programming is four times the cost of the product and thus having the product alone doesn’t help. This is partly because, she says, they didn’t have resources to dispel the myths and teach many people how to use the device that the FC1 failed to survive its fifth birthday in the country. By 2003, when the condoms were to expire, their stores were still full.

Market volume has increased from

89million condoms in 2012 to 179million in 2016

“Even in areas that were still demanding the condom,” she added, “we later found out they were not using them for their purpose. In Karamoja for instance women wanted the ring to use it as bangles. Almost no one in western region was asking for the condom” she recalls. Many other complaints came too as she recalls some saying the ring was uncomfortable, others it was noisy during intercourse. Stories that the condoms were sliding away and getting lost in the body also appeared to worsen the situation. Very soon an improved version FC2 came to the market with a smaller ring making it easy to insert and made of polyurethane, giving it a no-condom feel. But still, Kibirige and her group have failed to get women to

embrace the female condom, at least, to the success of the male condom. Of the 240million condoms needed every year, only 2million is the current need for the female condom. “Women still find it weird,” Kibirige says, “They say it’s hard to put on.” Muwonge sees no excuse in not using the panty condom. He says they inverted it after studying the flaws in all the old condoms on the market and that with it, one can be able to change positions during sexual intercourse. But Uganda Health Marketing Group (UHMG)’s Timothy Damulira is concerned about innovation and sustainability on the market. He says anything that concerns a change in behavior requires constant innovation and information because people tend to suffer from exhaustion using one product for a long time. For him, the search for a more pleasurable condom continues. Indeed, UHMG continues to innovate even when they have already built a brand in the contraceptive world. They recently ferried in a new brand of male condoms that is chocolate scented and of a golden color. Muwonge’s condom just like many on the market is planned to be sold both through the public sector, social marketing and commercially for those who can afford to buy out of the pocket. On the market, a packet of condoms costs between Shs2000 and Shs20,000 whereas the subsidized ones sold through social marketing go for as low as Shs500 per packet. A 2016 condom use study by the Ministry of Health revealed that the value of the total condom market was estimated at $88million, a 95% increase from the market value in 2011. Commercial contributes to only 2% of the condoms used in the country, 19% are sold through social marketing. The majority get their condoms free through public sector at 79%. In 2016, approximately 336 million condoms were needed to cover all risky sex acts in Uganda, about 212 million more than were needed in 2011. In 2011 alone, the need exceeded condom distribution by 67%. Muwonge hopes the panty condom will spring its own surprises .

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ART | BOOKS | SOCIETY | TRAVEL | CULTURE

By Dominic Muwanguzi

Samson Xenson Ssenkaaba

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enson is a first class graduate of the School of Industrial and Fine Arts at Makerere University and his name is synonymous with colossal experimental artwork produced from both indigenous (barkcloth) and synthetic material. He is a multi-media artist blending elements of fashion, poetry and hip-hop culture in his artistic practice. His performance of Ensi yaleta at the Johannesburg Art Festival 2015 and Musisi at the itinerary exhibit Kabo Ka Muwala 2015 held at Makerere art gallery, highlighted his creative ingenuity and elicited a standing ovation for the youthful artist. But it is GunflowerMask 2017 that got everyone talking on the Kampala art scene. In the exhibition, Xenson demonstrated his exalted proficiency at pushing the boundaries of art. He exhibited Photography, Painting and Installation in large scale and with attention to detail. His artistic narrative was largely dominated by the global current situation that includes issues of immigration, neo-colonialism, exploitation and material culture. With such energy, skill and genius mindset, Xenson is fast transforming the local art scene from a mediocre landscape to a vibrant one.

Sanaa Gateja

He is known as the paper bead King locally and internationally. The ability to recycle paper into colourful beads with a motive of inspiring a visual narrative of recycling and figurative representation of day to day life experiences, endorses him as a uniquely creative artist. He also works with barkcloth as a symbol of blending the traditional art practices with the contemporary. But it is the stories he tells with his art that capture the audiences globally. He is keenly aware of the global political and social landscape and as such, constructs his installations to respond to such conversation. His largescale installation Paths is a response to the subject of immigration that is a hot topic in Europe. Similarly, his popular figurative installation of a pair of spiritual deities: woman and man convey the message of African spiritualism in an era of neocolonialism. Sanaa has featured at the Johannesburg Art Fair, Paris Art Fair and recently at AKAA Art Fair, Paris 2017. 34

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Top five artists on the Kampala Art Scene

Immaculate Immy Mali She defies the stereotype that experience comes with age. This young artist has probably had the most illustrious art career, any artist on the local art scene would dream of. She makes art out of her own life struggles, and that perhaps is an added advantage because her stories are both genuine and heart-rending. Her installation Virtually Mine, at Kabo Ka Muwala exhibition was poignant. She worked with small glass panel inscribed on with WhatsApp messages. The dangling glass panels demonstrated her fragile relationship with her boyfriend who lives overseas. Such long distance love is delicate and is either sustained or destroyed by social media discourse. As if that was not emotional enough, she set out to perform Safe Here at Kampala Art Biennale 2016. Mali, albeit her physical inability in the right leg, struggled to find balance on a bicycle, so as she could

ride it. The performance that lasted a few minutes left her dripping with sweat as the audience looked on in disbelief. Presently pursuing an international art residence in Europe, Mali is an undisputed influence on the local art scene and beyond.

Eria“Sane” Nsubuga

The strength of this lanky artist lies in his invoking political satire in art. As such, Sane is a political satirist with a knack of fusing artistic parody with political evils. The motive for this blend is to create simple understanding and interpretation of complex subjects like immigration, neocolonialism, racism and homosexuality for his audience. Another trait of his art is to invoke academic theories of political revolutionaries in his art in order to evoke the idea of authenticity in his narratives. Exhibitions like Abaneene 2014, Black Faces, White Masks 2015 and Creases and Tears 2017 share this common characteristic. Sane’s deep conscious of inspiring such political discourse to the public through art makes him a bold artist. Few artists on the local scene are brave enough to use their craft to interrogate political injustices. It is a venture they think will land their art into jeopardy. With such brevity, the PhD student at the University of Southampton, England has showcased at the Johannesburg Art Fair, Kenya Art Fair and Paris Art Fair, France.  

Ronex Ahimbisimbwe

What Ronex cannot say in speech, he will say eloquently in his art. He is undoubtedly known as the trendsetter of technical innovation on the local art scene, and this he continuously emphasizes with art that is a creative blend of technical dexterity and the power of the subconscious. He is a multi-media artist working in painting, digital art, sculpture and installation. Nonetheless, his art is dominated with figurative contrasts of simplicity and complexity, naivety and sophistication, and beauty and ugly. This technique stimulates visual inquiry into his art culminating into a myriad of answers and questions from the audience. Unlike his contemporaries who create art to entertain and convey a particular message, Ronex primary motive is to elicit dialoguefrom the public. As such, he’s eager to move art outside its comfort zone of an elitist audience

Bank of Uganda's golden odyssey

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very book should have a purpose. And commemorative books appear to make this easy for the publisher because they are purposely obvious; especially if an anniversary is inked in. However, to produce really great work, there is catch. The guaranteed budget (whether big or small), the easy access to source material, and the collegial spirit around the project require creativity to manage team expectations. I was recently reading Bank of Uganda’s commemorative book to mark its 50th anniversary (1966-2016) when these thoughts intruded. Under the title `The Golden Odyssey’, the coffee-table style publication is a picture perfect rendition in book form of what is known in the corridors of the central bank as the `Bank of Uganda way’. It is a culture that the committed staff members describe as “the aspiration for excellence”. And this tendency shines through the book. Compiled by a joint Bank of Uganda editorial team and external consultants led respectively by the central bank director of Communications, Christine Alupo and consultant Chris Wasswa, it offers the reader a peek into the inscrutable vaults of an institution whose invisible hold on the country’s monetary sector touches everyone. It shows how, over the years, the men and women behind the walls on Plot 37/45 Kampala Road have strategised, negotiated, and plotted to ensure that the shillings retains its value in a turbulent currency environment and everyone with money in any commercial bank sleeps soundly, knowing there is a force watching over their mostly hard-earned savings. The book’s purpose is to tell the story of the bank’s evolution through the actions of its leading men (yes men, as only a few women shine through; current bank secretary Susan Wasagali Kanyemibwa and Janet Kahirimbanyi from the past and the important spouses of the period; Janet Museveni, Miria Obote, and Teopista Mubiru). Through twists and turns, and creativity, courage and tragedy, they are revealed as masterful players on a financial sector stage built on challenging political tapestry on which the mysterious murder of the Bank’s first governor; the exceptionally brilliant and brave Joseph Mubiru casts a dark cloud. Fortunately, the Mubiru murder under Idi Amin is also an emotional charge that makes any successes in the turbulent years since more poignant; especially the steering of the economy from the years of post-

Title: The Golden Odyssey: Bank of Uganda 1966-2016 Publisher: Bank of Uganda Reviewer: Joseph Were independence central planning to present day market-driven liberalism and incessant innovations in a globalised environment. From its cover page, which boasts a perfectly framed photo of the Bank’s old and new bank head office buildings to epitomise the journey, the book records mainly success. The other archival photographs tell equally amazing stories. It is a masterfully crafted tale of records, recollections, and conjectures of members of an army that has kept an eye on economic transactions with the rest of the world, ensured that commercial banks operate smoothly, and prices flow smoothly; remaining relatively stable and changing only as they should. Narration of technical, management, operational and statutory developments delves into issues of security, integrity, and continuity of financial sector. It is exciting to read about how innovations emerged to protect deposits in an environment shifting from analogue to digital and national inward-looking to increasing global interconnectivity. It is difficult to imagine that at one point, the Bank’s most hi-tech equipment was the IBM AS/400 with storage capacity of just 2GB. It covers the evolution of policy and strategies to protect deposits, including the inception of digitalisation, the emergence of mobile money and payment services, to grappling with new challenges like the Petroleum Fund as custodian of the US$250 million taxes from Tullow oil and a Petroleum Revenue Investment Fund, the credit reference bureau, Islamic banking, bancassurance, agent banking and more. The soft side of sports and culture (including a powerful choir), impeccable

book

human resource management practices, and Corporate Social Responsibility are also documented. A turning point for the bank was the promulgation in 1993 of the Bank of Uganda statute which delinked it from the public service and ring-fenced areas of its autonomy. It was a happy moment but also challenging. The team that put this book has a record of excellent work. Even when, as in this case, instances of paucity in analysis (especially in tracing how the monetary policy challenges have evolved since 1966 and some of the drama of grand decisions the Central Bank governors have had to make), and lack of rigor in expert recollection and documentation, it is clearly a resource imperative and not a dent on execution. Some laughable memories include the fuss in 1999 over the so-called year 2000 “Millennium Bug”, which was predicted to strike and wipe out all unsecured data but didn’t happen. When a speech Dr. Ngozi Okonjo-Iweala( former managing director, World Bank) gave as part of the Joseph Mubiru lectures is reproduced, it is inescapable that the interesting topic she tackles; `African Central Banks: Rethink the role or stay the course?’ would have been enriched by local nuances. Instead, it is the deftness of the editorial team that shines through as they attempt to fill the space with speeches of such distinguished financial managers. The missed opportunity for articulating the vision of Bank of Uganda is most felt in Part II: Core Mandates, Part III: External Perspectives, and Part IV: The Future. The evolution of the central bank’s core mandate from 1966 when the East African Currency Board divested its roles to the respective member states central banks. Even present day Inflation Targeting-Lite is treated fleetingly yet the switch from focusing ensuring exchange rate stability to price stability deserves more than the paragraph it’s given. The 50 year anniversary was marked as the bank was embarking on the fourth cycle of its five-year strategic planning round starting in 2017. Launched in 2002 under a new strategic planning philosophy; the current cycle runs up to 2022. Over this period, important developments are envisaged; including the establishment of a common EAC currency by 2024, through the EA Monetary Institute, an East African Central Bank. In reality, however, this book shows that nobody actually knows what will happen. Instead, it is a near perfect prototype for recording the next 50 years. Feb 02 - 08, 2018

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Schoolboy’s journal entry questions Columbus ‘lies’ A young schoolboy, King Johnson, recently challenged his teacher following a lesson on ‘the man who discovered America.’ Christopher Columbus is widely remembered in history as having discovered America. But Johnson didn’t hold back in his account, and clearly wasn’t afraid to tell his teacher exactly what he thinks about the lesson. He reacted to the class with

a powerful entry in his journal, noting that “there were lots of people who were already living on the American continent.”Today was not a good learning day,” Johnson wrote. Blah blah blah. I only wanted to hear you not talking. “You said something wrong and I can’t listen when I hear lies. Columbus didn’t find our country, the Indians did. I like to have Columbus Day

Bar bans customers from saying ‘most annoying word in the English language’ A bar has literally banned customers from using the word ‘literally’ in a bid to quash the rise of ‘Kardashianism.’ The usage of the word has risen in recent years, particularly among younger generations. The owner of dive bar Continental in New York’s East Village has been so upset by the erroneous placement of ‘literally’ that he has totally banned it from the

confines of his boozer. Grammar pendants are quick to air their disgust. These days, the word ‘literally’ is often used as a crutch word, and arrived on the scene as such around the time young people started saying ‘like’ unnecessarily. Worse still – at least in the eyes of some – is people using literally when they mean figuratively. Trigger Smith also admits that the policy is tongue-in-cheek,

Pet Chicken gets Obituary but his hatred of the word is real. Phrases such as ‘It’s all good,’ ‘You know what I’m saying?’ and ‘My bad’ also inflame his rage. “What’s annoying is people aren’t even aware they’re saying it. How could you be so unaware of your words that it’s coming out every couple minutes?” Some drinkers have come out in support of Trigger’s notice. Most fail to see the funny side.

Woman answers marriage advert on Facebook as a joke, gets married a week later

Nigerian makeup artist, Sophy Ijeoma decided to comment on an acquaintance’s Facebook marriage advert as a joke but she never imagined she would marry the man seven days later. The day before New Year’s Eve, Nigerian furniture maker, Chidimma Amedu, decided it was time to find a wife and posted an advert on Facebook, asking all women interested in becoming his wife to reply to his post. It read: “Am of age and I am ready 36

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off but I want you to not teach me lies. That is all. My question for the day is how can white people teach black history?” Apparently, the teacher appeared unimpressed with Johnson’s takedown, and wrote in red pen about being “disappointed” by Johnson's efforts. While Johnson’s teacher might not have thought much of his thoughts - everyone else thinks he’s done a good job

to say I do and I am wasting no time. Send in your applications.” The most qualified will be married on 6 January, 2018. Application closes 12 midnight, December 31, 2017. I am serious about this and don’t say you did not see it on time. Goodluck.” Amedu received a few responses from interested parties, but the one that caught his attention came from Sophy Ijeoma, an acquaintance he barely knew. “Am interested, just DM me…lols.” After two hours of conversation, Amedu asked Ijeoma to meet his uncle. It was after we met the uncle and his wife, that I realized that this could actually happen and I wanted it.” The couple decided to keep their momentum and seek the approval of Ijeoma’s family on the same day. It was official – Amedu and Ijeoma were engaged to be married all within hours of meeting. All went well, and on January 6, 2018, the couple officially became husband and wife, in a traditional Igbo ceremony.

A Texas chicken has received an honour few, if any, other birds get — a formal obituary. The obituary of “Big Mama”, a 6-year-old Rhode Island Red, appeared recently in a local newspaper based in Bryan, Texas. The obituary noted that Big Mama initially had been raised in an apartment in Houston. It is here that her previous owners took her to be euthanized in 2013, when a compassionate veterinarian instead had them relinquish their rights to the chicken so she could find a new home. Big Mama was adopted by Stephanie and Gregory Sword and their two sons, who live in College Station. The family said in the obit they were “hooked instantly” after seeing a photo of the bird. The chicken recently died in her sleep, at her favorite spot in the chicken coop, the Swords told local media. “We’re just hoping that the story of Big Mama will remind others that every life, even that of a chicken, is valuable and worth saving.”

Kia reveals

upgraded K5 sedan Car maker, Kia has revealed an upgraded K5 sedan in South Korea offering a new look of the new 2018 Optima.

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ringing fresh front and rear designs, new alloy wheels and more technology, the facelifted mid-size sedan features a more aggressive front bumper with three-part lower LED lamps instead of foglights and a revised grille with vertical slats. Out back there are fresh LED tail-lights atop a reshaped rear bumper with relocated reflectors and new contrasting-colour diffuser element with twin oval exhaust outlets. Inside, there’s a different four-spoke multifunction steering wheel, new LED ambient interior lighting and revised trims including a luxurious quilted leather option. Finally, Kia has fitted an updated infotainment system with surround-view functionality and new driver aid called Highway Assist, which works with the adaptive

cruise control and lane assist systems to provide semi-autonomous high-speed functionality. However, despite the fact the Optima was the only Kia model to decline in popularity last year, when the new Stinger large sedan was launched with a $45,990 starting price, it’s clear that Kia’s direct rival for the Toyota Camry and Mazda6 will not be discontinued. Chief operating officer Damien Meredith recently told motoring.com.au that Kia Australia was currently rethinking its Optima strategy, in light of the Stinger’s success and the mid-year arrival of the Korean carmaker’s larger new Cerato sedan, which debuted at the Detroit motor show earlier this month. “There’s two issues we’ve got to look at,” said Meredith at the time. “One is that

we did have a strategy in place for Optima; how we’re going to handle it, put it back into the market and make it more competitive. “I think that we will have to review that with what we saw in Detroit, with the new Cerato sedan. It’s a big car. I think the top end of the Cerato sedan will put pressure on the Optima, so we’ve got to rethink that. “Personally I don’t want to cut it [Optima] loose at all, but we’ve got to make sure it fits in between the new Cerato sedan, which is a bigger car, and obviously the Stinger. “We’ve got a bit of homework to do on itIt’s not as easy as just re-pricing the car and de-speccing it and things like that. We’ve got to work smarter than that.” Source: Motoring.com

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Profile

Male Mabirizi on managing a contentious life By Agnes E Nantaba

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assan Male Mabirizi Kiwanuka was largely unknown until Aug.29, 2016 when he sued Buganda’s King Ronald Muwenda Mutebi II over the land registration rationale in Buganda. Being a Muganda and as such the King’s subject, to many, Mabirizi did the unthinkable when he accused the former of illegally collecting land fees through the Buganda Land Board (BLB). Mabirizi says he had to follow his conscience even though the move appeared too contentious. Perhaps, it is the very reason he could hardly find any lawyers to represent him in court. Luckily, Mabirizi was a lawyer and decided to represent himself. “The Kabaka has so many subjects and supporters some of whom believe that suing him is demeaning,” said Mabirizi, “Many fear to be associated with such a case”. Born in 1987 to Mohammed Mutumba and the late Ndwaddewazibwa Mastula, Mabirizi has never been the kind to back down. Apart from the that case, in December last year, Mabirizi petitioned the Constitutional Court challenging the process through which Parliament passed the controversial Bill on the amendment the Constitution to remove the presidential age limit. Mabirizi filed the suit against the Attorney General in his own capacity as a concerned citizen, contending that the actions of Parliament to consider and grant leave to Mr Raphael Magyezi [Igara West MP] to table a Private Member’s Bill when the Leader of Opposition in Parliament, Opposition Chief Whip and other opposition MPs were not in the House, was in contravention of the Constitution. While Mabirizi has just caught the attention of many people for this fearlessness, he says he has always been like this. In his early days in secondary school, he refused to apologize to his step mother on the orders of his father and other relatives. The stepmother accused him of disrespecting her and when he refused to apologise, the relationship between them got worse. As a result, Mabirizi was chased away from home and his father also refused to continue paying his school fees. In an effort to stand up for his rights, the 16 year old decided to sue his father for negligence and neglect of his fatherly duties. But being a minor, Mabirizi was advised by the 38

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family division court to forward his complaints through an adult. “My father was summoned after which he agreed to pay the fees but still banned me from returning to his home,” Mabirizi said. Despite being banned from home, Mabirizi continued with school when the then head teacher at Crane High School in Kampala offered him a vacancy in the boarding section. This meant hard work and perseverance for the half orphan whose mother had passed on while he was still in Primary Two. At the end of the four years, Mabirizi was the best candidate at the centre with eight aggregates in the best six subjects. This performance earned him a place at Kawempe Muslim Secondary School and also made his father offer him financial and other logistical support. While here, Mabirizi worked even harder in order to qualify for government sponsorship and pursue his dream course of Bachelors of Laws at Makerere University. Indeed, Mabirizi was among the excellent performers with 25 points, which earned him a place at Makerere University. During his second year at the university, Mabirizi started a money lending business from his savings as a taxi conductor during the long senior six holidays. He still earns from that money lending business on top of his legal profession

Q&A

Male Mabirizi’s Liteside Any three things we don’t know about you? am always ready to stand up for my rights. I so much want to defend my conscience and I don’t mind what others say. Even when I loose, my conscience will be clear that I fought and lost the war. I can only do business because I can’t imagine how I can survive in a public office where many are prone to corruption.

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What is your idea of perfect happiness? If I do something which is up to my conscience, I am happy. What is your greatest fear? There could be challenges but I am not scared to encounter them and once done tactfully, you win. What is the trait you most deplore in yourself? My voice tends to be so loud, which makes some people think that I am so arrogant. At times, I am quick to anger and never hold back to my

reservations. What is the trait you most deplore in others? Some people don’t mind selling their conscience and that practice is hard for me to tolerate. Which living person do you most admire? I may not be able to point to one person because I pick a few good points from an individual. I don’t know of any individual who I admire wholly. What is your greatest extravagance? I spend a lot on my clan activities. What is the greatest thing you have ever done? Standing up for my rights while holding onto my conscience. What is your current state of mind? I am happy. What do you consider the most overrated virtue? Some people speak more than they act. For instance, on this Kabaka land issue, many people were aggrieved but few could stand up to take action. At the end of the day, it doesn’t solve the problem at hand. What does being powerful mean to you? You only become powerful when you comply with what the law says. On what occasion do you lie? All individuals lie for one reason or another. What do you most dislike about your appearance? I am perfectly made. Which living person do you most despise? I don’t despise people.

What is the quality you most like in a man? Being straightforward and honest.

What is your most treasured possession? It has to be my conscience. What do you regard as the lowest depth of misery? A child losing a mother is incomparable. It comes with so many challenges and determines the future regardless of whether your father and paternal relatives have the resources or not. Every child needs a mother’s guidance.

What is the quality you most like in a woman? Being straightforward and honest. What or who is the greatest love of your life In my grandmother, I had a confidant but she has since passed on and no one has replaced her. When and where were you happiest The moment I scored 25 points in my A-level exams was not only definitive but also an assurance of admission to Makerere University to pursue law. I had gone through a lot so it was a very big climax. On May 6, 2017 when I won Kabaka in the discovery application when Court ordered to produce the documents. So much had been said with a lot of scary utterances on how the Kabaka can never be challenged. It was a very big milestone. Which talent would you most like to have? No other. If you could change one thing about yourself, what would it be? Absolutely nothing. If you were to die and come back as a person or a thing, what would it be? As a human being and the same person doing the same things. Where would you most like to live? Uganda is my country and even if it has challenges, the duty is upon us to solve them and make it a better habitable country.

What is your favorite occupation? Being a money lender. What do you most value in your friends? Once transparency and honesty are breached, I close that chapter. Who are your favorite writers? I am an ardent reader of legal documents so I am not attached to any writer. Who is your hero of fiction? I am a fan of physical fiction and Charles James Ssenkubuge does it for me. Which historical figure do you most identify with? Nelson Mandela did it: he stood to his word, suffered a lot and at the end of the day, he wasn’t too greed to rule for life. What is your greatest regret? I am a perfectionist. So, once I make a decision to do something; I offer my best to leave no room for regrets. How would you like to die? I wish I could die past at least 70 years just in my sleep but not outside Uganda. What is your motto? Make transparency and consistency your own

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Global comment

By Kaushik Basu

Africa’s arrival The latest African Development Bank (AfDB) Economic Outlook for 2018 predicts 4.1% average growth

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he African Development Bank (AfDB) has just published its African Economic Outlook for 2018. This year’s revamped publication – shorter than usual, analytically wellstructured, and written in lucid prose, without hyperbole – in some ways mirrors Africa’s own transformation, as it raises hopes that we may at last be witnessing the continent’s long-promised economic arrival. Africa’s rise has been a long time coming. In the 1960s, hopes were high. The remarkable leaders of the independence generation – such as Ghana’s Kwame Nkrumah and Kenya’s Jomo Kenyatta – received advice from the world’s top economists. The Caribbean-born Nobel laureate Arthur Lewis became Nkrumah’s Chief Economic Adviser. In India, we read about these leaders’ friendship with our own postindependence prime minister, Jawaharlal Nehru, and the hope for a new dawn for all emerging economies. And many emerging economies did indeed take off. In the late 1960s, some East Asian economies surged ahead. Beginning in the early 1980s, China began its decadeslong rise. And, from the early 1990s, India’s economy also began to grow robustly, with annual rates reaching the 9% range by 2005. But Africa remained stagnant, mired in poverty. Ironically, it was the continent’s resource wealth that hampered economic progress, as it fueled conflicts among governments and insurgents eager to control it. The resulting political instability attracted outsiders keen to exploit governments’ weakness. As the Indian poet and Nobel laureate Rabindranath Tagore put it in his 1936 poem “Ode to Africa,” which played on perceptions about who is “civilized,” the continent fell prey to “civilization’s barbaric greed,” as the colonists “arrived, manacles in hand/Claws sharper by far than any of your wolves.” Finally, at the turn of the twentyfirst century, things began to change for Africa. A few dynamic leaders, democratic stirrings, and emerging

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regional cooperation led to a decline in poverty and a pickup in growth. Commodity exporters faced a setback around 2014, when prices plummeted. But this turned out to be a blessing in disguise, because it forced countries to diversify their economies and increase production – factors that supported renewed growth. According to the AfDB report, Africa’s 54 economies grew by 2.2% in 2016, on average, and 3.6% in 2017. In 2018, the AfDB predicts, average growth will accelerate to 4.1%, while the World Bank expects Ghana to grow by 8.3%, Ethiopia by 8.2%, and Senegal by 6.9%, placing these countries among the world’s fastest-growing economies. And these figures are not wishful thinking: in 2016, Ethiopia’s GDP grew by 7.6%. Of course, serious challenges remain. South Africa, the continent’s strongest economy, is now facing the difficult task of tackling its deep-rooted corruption. Yet, with the African National Congress now apparently determined to replace President Jacob Zuma’s scandal-ridden administration with one led by the party’s new leader, Cyril Ramaphosa, there is reason for hope. More broadly, many African countries need to find ways to create more employment – and fast. The share of the working-age population is rising faster in Africa than in any other region. This “demographic dividend” has immense potential. But if job creation stalls, the unemployed or under-employed are likely to become frustrated – a recipe for conflict. Consider the case of Tanzania. Thanks to President John Magufuli’s effort to mobilise more domestic revenue to support increased development spending, the economy is doing well. But, with roughly 800,000 individuals entering the labour force each year, Tanzania needs much more working capital, better infrastructure, and educational reform aimed at ensuring that workers have the skills, resources, and opportunities to secure decent jobs. The same is true of Ethiopia. In the

last couple of decades, the country has made great strides in export-led growth, supported by a growing industrial sector and large investments from China. Now, it is poised to take over as the economic powerhouse of East Africa. Yet the urban youth unemployment rate stands at 23.3%. Left unchecked, this situation could easily end up fueling ethnic conflict and political turmoil. Another, related challenge concerns resource mobilisation: countries need funds to invest in infrastructure, human capital, and the creation of trade and digital links within and beyond Africa. The AfDB report estimates that, for infrastructure investment alone, the continent needs some $170 billion per year, which is $100 billion more than is currently available. As it stands, Africa receives a total of about $60 billion in foreign direct investment each year. To close the gap, African governments must attract more money. That will require establishing effective regulatory structures that facilitate long-term borrowing and repayment, while ensuring that lenders do not exploit borrowers, as has occurred everywhere from rural India to the United States mortgage market. The challenges are daunting, to say the least. But there are lessons that African countries can learn from one another. For example, Ghana’s smooth transfer of power after the December 2016 election set a positive democratic example. Nigeria’s Lagos State and Tanzania have done a good job of mobilising internal resources for development. Add to that the emergence of an indigenous intelligentsia in the region, exemplified by organizations like the AfDB, and it seems that Africa’s moment may have arrived at last. Kaushik Basu, former Chief Economist of the World Bank, is Professor of Economics at Cornell University and Nonresident Senior Fellow at the Brookings Institution. Copyright: Project Syndicate, 2018.

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