News analysis
Health
Business
Sembuya’s chocolate dreams
New cancer machine restores patients hope
State-owned enterprises saddled with losses
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'Saleh proposal on ministries will fail' Museveni is the problem, insiders say
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Issue No. 507 Feb 09 - 15, 2018
The Week
The Last Word
Analysis
4|DPC Kirumira transferred to Nalufenya
Fashionable nonsense: How the debate on governance in Africa is a toxic combination of high emotion and little knowledge
14|Sembuya’s chocolate dreams: Young entrepreneur exploits well-kept secret
4|Bridge schools, Ministry in licensing controversy
4|EU gives 100,000 Euros aid to Congolese refugees
16|`Uganda’s oil sector is on the right track’: Susan Eckey is Norway’s ambassador to Uganda. She spoke to The Independent’s Ronald Musoke on the growing bilateral relations between the two countries.
STRATEGY & EDITORIAL DIRECTOR: Andrew M. Mwenda MANAGING EDITOR: Joseph Were INVESTIGATIONS EDITOR: Haggai Matsiko BUSINESS EDITOR: Isaac Khisa PHOTOGRAPHER: Jimmy Siya
Business 21|State-owned enterprises saddled with losses: BoU, UEDCL and Mandela National Stadium listed amongst those in red 24|New accounting standard to make loans, insurance more expensive: Experts say financial institutions to prefer extending short term loans
Arts & Culture 43|Cultural integration through art: East African biennale Kampala focuses on commonality 43|Top Peugeot designer dies: Gérard Welter modeled cars like the Peugeot 604, 304, and 406
WRITERS:Ronald Musoke, Flavia Nassaka, Ian Katusiime, Agnes Nantaba, Agather Atuhaire, Julius Businge. DESIGN/LAYOUT: Sarah Ngororano, Harriet Jamwa.
PUBLISHER: Independent Publications Limited, Plot 82/84, Kanjokya Street, P. O. Box 3304, Kampala, Uganda Tel: +256-312-637-391/ 2/ 3/ 4 | Fax: +256-312-637-396 E-mail:
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Feb 09 - 15, 2018
Offline
Dex Agourides, (L) Head of programs, Africa and the Middle East Green Growth Planning and Implementation with Patrick Ocailap, deputy secretary to the Treasury during the official launch of the Uganda Country Planning Framework 2017-2021 at the Ministry of Finance on Feb. 2. INDEPENDENT/ JIMMY SIYA
“In my career, I have never withdrawn from the battlefield for the last 39 years, and I like training which I am going to do with the Somali National Army.” Lt. Gen. Jim Owoyesigire, new AMISOM Force commander
Hundreds arriving at Kololo Airstrip with the body of the fallen artist Mowzey Radio for public viewing on Feb. 2. INDEPENDENT/ JIMMY SIYA
“Museveni is the last president I am opposing. In the next government, I will oppose from within. I am tired of living like this.” Aruu County MP Odonga Otto
President Yoweri Museveni, (M) at the 83rd birthday celebration of Constance Kabakaali Muhangazima Adyeri, (2R) the mother of Burahya County Margaret Muhanga, and Andrew Mwenda M.D of The Independent Publications Limitedww at Kanyandahi village, Ruteete subcounty in Kabarole district on Feb. 2.
100
Employees that were sacked by National Identification Registration Authority
1444
Schools government has licensed since last year
“Celebrities need to learn how to manage fame. Artistes, you need professional managers. They will guide you and you should listen to them.” Katikkiro Charles Mayiga at singer Mowzey Radio’s funeral
Shs453b Feb 09 - 15, 2018
Money government will pay to Ugandan traders who 3
week
EC, petitioners asked to settle LC elections case out of court On Feb, court cleared the Electoral Commission (EC) to conduct Local Council Elections after settling the grievances raised by petitioners amicably. The electoral commission had scheduled to conduct the elections last year but a number of people petitioned court faulting the manner and circumstances under which the polls were to be conducted. One petitioner – James Tweheyo said senior six candidates most of whom are eligible voters who were still at school doing final exams would be left out. Speaking to journalists last week, EC chairperson Justice Simon Byabakama said the commission will soon set a date for the polls although he noted that they still lacked funds to deploy electoral officials on the ground. Earlier however, several people had opposed the method of voting by lining up behind the candidate that it would groom conflict within the people. Uganda has not held LC elections for the last 16 years.
DPC Kirumira transferred to Nalufenya Defiant former Buyende District Police Commander Mohammed Kirumira was on Feb.02 transferred from Railway Police Station where he had been held upon arrest a day before to Nalufenya police station in Jinja, an entity that has been associated with gruesomely torturing suspects. Kirumira who last week took to the media to announce that he was leaving the force because of what he referred to as double standards and persecution was only arrested after police broke into his home in Bulenga Wakiso district. He was thereafter paraded before the force’s tribunal and charged with misconduct. Meanwhile the Inspector General of Police Kayihura has replaced him with Assistant Superintendent of Police Edgar Akankwasa as the DPC for Buy-
Nansana when he commanded operations that rid the area which was hither to haven for wrong doing of criminals. After his time in Nansana, he was transferred to Old Kampala for a short time before being sent to Buyende.
Trial of pine car bond boss starts
Muhammed Ssebuwufu the boss of Pine Car Bond
Dial 4
ende and is therefore expected to handover office on February 09. Kirumira who was recently charged with extortion, corruption, torture and excessive use of authority came to the limelight in 2013 while still in
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Hearing of the murder case involving Muhammed Ssebuwufu the boss of Pine Car Bond started at the high court in Kampala on Feb.05. Ssebuwufu is accused of killing a business woman Donah Katusabe who is said to have been tortured to death for failing to clear a Shs9million debt after buying a car from the bond two years ago. The case in which Ssebuwufu is co-accused with seven others had sunk in the Kampala Central Police Station Aaron Baguma who was relieved of
the charges recently after the Director of Public Prosecutions Mike Chibita dropped charges against him. The eight are accused of murder, aggravated robbery and kidnap with intent of murder. Meanwhile some critics irked by the DPP’s decision on dropping charges against Baguma saying the crime was committed just a stone throw from the police station and that the deceased pleaded with him to rescue her from the tormentors but he ignored her.
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Week
Ugandan named new AMISOM commander Uganda’s Former Air force commander, Lt Gen Jim Owoyesigire has taken over from Burundi’s Lt. Gen Osman Noor Soubaglesh as the commander of the African Union Mission in Somalia (AMISOM) forces, a peace keeping mission operated by the African Union in Somalia. Owoyesigire was handed over power in a function held on Jan.31 at the mission’s headquarters in Mogadishu and presided over by the
Special representative of the Chairperson of the African Union Commission [SRCC] and Head of AMISOM – Francisco Caetano Madeira. ‘’The main objective is to defeat AlShabaab terrorists and stabilize Somalia and the region at large as the effects have always spilled over to other countries in the region for example Uganda and Kenya”, said Lt Gen Jim Owoyesigire in his accep-
tance remarks according to a Statement to the media. The statement also reads that the General brings 39 years of military and diplomatic experience to AMISOM and is expected to spearhead efforts to further boost the capacity of the Somali National Army to facilitate the exit of AMISOM from the country. Noor has been in office since July 2016.
Suspected Mowzey Radio’s killer arrested Reports just in indicate Uganda Police has arrested a person key in resolving the circumstance under which popular vocalist Moses Ssekibogo aka Mowzey Radio of the Goodlyfe Crew was assaulted after an altercation at Entebbe town based spot De Bar on Jan 22. “Katwe Police has arrested the suspected killer of singer Radio Mowzey. The suspect Godfrey Wamala was found at a friend’s home in Kyengera where he had been hiding,” Uganda Police confirmed on
Feb.05 saying that the suspected would be transferred from Katwe police Station to Entebbe Police Station. Ten days after being beaten into a coma, Mowzey Radio died on Feb.01 at the intensive care unit at Case Hospital in Kampala and was buried on Feb.03. The bar where the brawl happened was closed by the Entebbe Town Clerk, Lutaaya Dan Fred immediately when news of the singer’s demise started circulating.
Bridge schools, Ministry in licensing controversy Ahead of the official opening of second term on Feb.05, Dr. Daniel Nkaada, the commissioner Basic Education at the Ministry of Education on behalf of the permanent secretary wrote a letter warning Bridge International Academies not to dare open without operating licenses. “I note that you are comforting your over 30,000 parents, communities and invariably the 14,000 pupils you serve in your
63 schools that we are working tirelessly around the clock to issue you licenses ahead of the new term. I am afraid you are feeding your clients on false hope”, Nkaada wrote to Bridge academies, a network of schools established in various countries to deliver local cost and quality education. But, Morrison Rwakakamba the schools’ Country Director rubbishing the Ministry’s claims said the schools would
open for the new term. Some of the concerns pointed out by the Ministry are that the academies have no qualified teachers and that their curriculum and structures have not been cleared for operation. The controversy between the schools and the Ministry started a year ago that led them to go to courts of law where they agreed to abide by the Ministry’s requirements in order to operate.
EU gives 100,000 Euros aid to Congolese refugees Congolese refugees living in Uganda are set to benefit from aid to the tunes of 100,000 Euros from the European Union. According to a statement by the EU, the money will be available to the International Federation of Red Cross and Red Crescent Societies and that initially assistance will go the fields of health, sanitation, water and hygiene where Red Cross staff will engage in outreaches and providing psycho social support. “Renewed fighting and atrocities in DRC are driving thousands of Congolese from their homes. After the long journey, many of them arrive in the refugee settlement weakened and destitute. EU funding is being released to increase the safe water supply and improve sanitation, hygiene and health services. It is crucial that we provide dignified living conditions and prevent disease outbreaks,” said Isabelle D’Haudt, head of office for EU civil protection and humanitarian aid in Kampala. Uganda is host to about 240,000 Congolese refugees whereby just between December and January this year over 14,000 refugees arrived in the country via Kisoro, Kanungu and Lake Albert. The refugees say that they fled the country following the springing up of violence that left some dead and property looted. Most of the refugees are from Congo’s North Kivu and Ituri provinces.
Feb 09 - 15, 2018
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Week
Lord Mayor cancels council meetings Kampala city Lord Mayor Erias Lukwago on Feb.05 suspended all council meetings until a work plan for the Kampala City Council Authority is developed. Speaking to journalists, Lukwago said the technical team had resolved to boycott council meetings and that it didn’t make sense for him to continue convening meetings without them. He therefore said the meetings will resume after management reaches a decision on how business of the authority will be handled. This move comes two weeks after a melee ensued at city hall when councilors tried to bar the technical team from moving out of the meeting following an announcement by Minister for Kampala Beti Kamya that the meeting was illegal. The Minister had earlier announced that her office would evaluate all meetings that have taken place both at KCCA and division councils since May 2016 when the lord mayor took over office for a new term. However, there has been ongoing controversy between the technical and political team at the authority regarding how decisions are made. It’s because of disagreements, Samuel Sserunkuma the Acting Deputy Executive Director said that they resolved not to engage in any meetings until their grievances are ironed out. In a January 29 letter to Lukwago, Sserunkuma complained that the conduct by councilors when they held technical staff hostage was dishonorable and disconcerted members of management.
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Government responds to OPM refugee corruption scandal allegation Musa Ecweru Minister of Relief, Disaster Preparedness and Refugees on Feb.05 released a statement acknowledging that government is investigating an allegation of corruption in the office of the Prime Minister whereby officials are accused of mismanaging and diverting funds meant to cater for refugees who live in Kampala. “We take these allegations seriously. As such the leadership in the Office of the Prime Minister which oversees refugee issues in the country in collaboration with partners is
already seized of the matter and is working with stakeholders including the United Nations system at different levels,” the statement reads. The UN and other big donors have tasked the government to take action on the culprits after investigations revealed that the number of refugees is being inflated. In Kampala for instance, it’s said the office has more than 26,000 refugees registered to benefit from the various donations but when they were asked to turn up physically to pick their share only 7000
appeared. However, Uganda has been rated highly as a one of the most hospitable host to refugees and asylum seekers with the number of refugees living in the country estimated to be up to 1.2million. Most of the refugees come from the war torn neighboring countries of South Sudan, Burundi, Democratic Republic of Congo and Somalia among others. The country has an unusual open policy that allows refugees to attend school, do business and owning land.
Makerere ordered to defend self over sexual harassment case A student whose identity has been withheld through lawyers Isaac Ssemakadde and Sheila Namahe recently sued Makerere University for failing to protect her from sexual harassment for the period 2012 to 2017 when she was at the university. Hearing the application on Feb.05, Justice Lydia Mugambe issued a directive for the university to file its defense
Feb 09 - 15, 2018
in two weeks. In response, Kibeedi and CO. Advocates, the lawyers representing the university asked for more time to study the application in order for them to fail a defense. They say they were served late. Meanwhile, in failing to protect her, the student contends that the university violated her rights to dignity, health,
education, equality and nondiscrimination. In her application, she asked court to prohibit any person or organization from publishing, telecasting or broadcasting any information connected to the subject matter that may be used to establish her identity. The case is set to be heard again on February 19
Humour
Singer Mowzey Radio passed away on Feb 1 after sustaining head injuries in a bar incident
The Speaker of Parliament, Rebecca Kadaga, has protested what she called the ‘interference’ of the Judiciary in the workings of parliament. She asked the judiciary to stop intimidating the legislature.
President Museveni and Cabinet have approved a Bill allowing 78 retiring judges to remain with their full benefits, including salaries, as a way of appreciating their contribution to the country
Did you know? Phone use even when parked by road in France is illegal
It’s illegal to hold your phone on public roads in France even when you’re pulled over to the side of the road, whether you’re blocking traffic or not. A recent high court ruling means that taking what some consider to be a safe step -- pulling over to talk on the phone -could still result in points and a fine of 135 euros (Approx.Shs600,000). The High Court ruling is not a new law, but it clarified exactly what it means to be “circulating in traffic.” Now, it’s not enough to pull over and cut the motor in order to use your phone; you have to be parked in a designated spot. When you’ve had an accident or breakdown, however, you are allowed to call or text. There has recently been a rise in road deaths in France and with nothing much else to pin it on, authorities are going after scofflaw drivers who text or call. Feb 09 - 15, 2018
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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
lebratin g Ce
Years
The fall of Kayihura's men How the war between Kayihura and CMI crashed Boda Boda 2010
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.
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When a country deserves Trump’s description Refer to: “Is America a shithole country?”(The Independent Jan.16). When the rule of law is frowned upon When the most vulnerable of us are not protected When corruption is abated at the highest levels of government When plunder of the scarce resources goes unrestrained When dictatorship is enshrined in the constitutions When state tools of enforcements are used to pillage, maim and murder of their own citizens When the hospitals lack the basic sanitation needs but the elite go abroad at the expense of the taxpayer When the political elites live lavish lifestyles paid for by the taxpayer When local media houses are coerced to air the leader’s address without compensation When goons work hand in hand with the police force to clobber political dissent When a country has to borrow to construct a public latrine When…….. That country deserves Trump’s descriptive phrase. Mulumba 8
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What is a shithole anyway? Refer to: “Is America a shithole country?”(The Independent Jan.16). This article reeks of fallacies of diversion: The straw man and the red herring. You can’t just make up your own definition of American slang words and terms and then argue according to your own personal made up definitions. Learn the lingua franca before you go down a
certain path. “Shithole”:/nounvulgar slang noun: shithole; plural noun: shitholes; noun: shithole; plural noun: shit-holes “An extremely dirty, shabby, or otherwise unpleasant place.” “This place is a shithole, I hope you know that” If most African countries were not shitholes you would
not have so many of its citizens risking life and limb to go to the western world. Uganda is extremely dirty and shabby. For many it’s unpleasant. Please stick to the proper definition of the word “shithole” instead of diverting us with arguments based on your own made up version of common terms. Nowa Lubega
Mowzey would have lived Refer to: “Ugandan top musician Mowzey Radio is dead” (The Independent Online Feb. 01). That injury that involved trauma and coma needed serious management from UK hospitals instead of those fool clinical
officers of Case Hospital who should have forwarded the patient immediately. Am so so so angry with Case Hospital management which scientifically knows the meaning of traumas on a patient. Our man died out of poor decisions by
the poor local scientists. I wish he was not in coma, he would have decided to go to abroad for treatment and he would have lived. RIP my bro. Binobusingye Yoas
Mowzey: What’s killing musicians? Refer to: “Ugandan top musician Mowzey Radio is dead” (The Independent Online Feb. 01). But how many of these young talented Ugandan artists are going to be sacrificed through beatings; unknown assailants doing whatever they do to kill one by one? First it was AK 47, now it is Radio, there have been frequent attempts on Bebe Cool. These kind of killings, we the people of Africa; the people of East Africa; we the black people, are tired to see these kind of killings done in broad day light and we end up not seeing
action taken whatsoever. All we see and hear is arrests that amount to nothing productive. We are so scared to enjoy the night moments in places where these music stars have come to because we are going
to start thinking that anytime a killer could come and mass murder by shooting or using grenades or bombs to kill these stars and we, the ordinary people, become victims as well. What is the police and all other security operatives in Uganda doing to stop this insanity? My sincere condolences to the family of Radio, his crew, his music base, his fans and to all Africans and all people who love this young man and the Ugandan talent at large. For those keeping silent, you should all be ashamed! Abd El Hamiid
Lessons from Mowzey death Refer to: “Ugandan top musician Mowzey Radio is dead” (The Independent Online Feb. 01). We shall miss his wonderful vocals, but it has become too much; some-
Feb 09 - 15, 2018
thing has to be done the way musicians are being killed. You can imagine AK47, Dance kumapessa, now Mozey. Most musicians have been beaten and just survived by God’s
mercy. Remember Jose Chameleon, Bebe Cool and others. It’s high time you musicians watched your movements. R.I.P Moses. Isaac Kirunda
The Last Word
Opinion
Fashionable nonsense By Andrew M. Mwenda
I
How the debate on governance in Africa is a toxic combination of high emotion and little knowledge
t is fashionable across our continent to condemn governments for poor delivery of public goods and services. This, it is argued, is caused by corruption, incompetence, and greed by our leaders. This is captured in the modern lexicon as “bad governance”. Yet in spite of many changes of government, and with the exception of post genocide Rwanda, no poor country can avoid this accusation. I argued in this column last week that what we call “bad governance” is not only the most cost effective and cost efficient way of managing power relations in the context of poverty, it is actually the only affordable way of doing so. But first let me make a caveat. My argument that poor countries have poor delivery of public goods and services because they lack sufficient funds to do better is a statement of fact, not a call for inaction. For every poor country (or even a rich one) there is always room for improvement. Allegations of corruption and greed are not false. But they are not the fundamental reason our nations perform poorly. The way our politicians manage our nations has very little to do with their character and much more to do with our context of poverty. Imagine the profile of the median voter in a poor country. His/her income per year is about $700 to $1,500, lives in a mud house with rammed earth floor, has two poor quality meals a day, buys clothes twice in a year, eats meat once in a month and has limited access to poor quality education and health services. These circumstances give such communities a set of moral values and expectations of what better off people are supposed to do for them. Equally the better off in such communities have a clear sense of obligation when people come to them seeking personal favours. Now imagine two politicians seeking the attention of this voter. Politician A is public-spirited and promises improved health and education services, water supply and better roads to constituents. Politician B is self-interested. He has sold his house or depleted his savings or even borrowed from the bank to run his campaign. He also promises improved public goods and services – because anyone can do that. But he goes a step further and also buys meat, rice or alcohol, t-shirts etc.
which he distributes to voters. Promises of public policy can only be delivered at a later date. So they are uncertain. And voters know from experience that such promises rarely materialise. This is largely because – even with the best of intentions – our nations are too poor to deliver on such promises. Politician B has added value to his campaign by addressing the existential needs of his constituents. So he has already delivered something. For many years, I have wrestled with the morality of such politicians. For most people, Politician A is preferable. Politician B is corrupt because he “bribes” voters. Here is the moral dilemma: when Politician A campaigns at a rally of impoverished voters, many of whom are hungry, but does not address their immediate existential needs and instead promises them public goods and services, to be delivered at some later date, is he being moral? Whose morality are we talking about? Contrary to fashionable attitudes, Politician B could be more moral within the context of a poor rural community. By giving voters rice, salt, and soap, he is actually addressing their immediate existential needs, something the state has criminalised. Why? The morality of our political institutions is borrowed from Western countries. It is not rooted in the values of our people. Do voters consider a politician who gives them food during an election campaign, corrupt? In any case, we know that it took very long for Western nations to outlaw voter bribery. They did so after the median income had crossed a particular threshold. Studies by sociologists and political anthropologists across Asia, Africa, Latin America and even preindustrial Europe show that voters do not see politicians who “bribe” them as acting wrongly. Indeed, in poor communities, the rich legitimise their wealth by exaggerated demonstrations of generosity. A leader who is not generous loses legitimacy. And giving is not only done during elections. Once elected, politicians are inundated with requests for personal assistance from their constituents – to meet burial expenses, pay medical and education bills, and transport costs, etc. This thesis has powerful implications
on “governance.” How do politicians meet these demands of their voters? Their personal income is insufficient to pay for them, so they must have alternative sources of income; hence corruption. Therefore, the more democratic competition a poor country has, the more corrupt its politicians will be. Simon Denyer’s book, `Rogue Elephant; Harnessing the Power of India’s Unruly Democracy’ is a classic statement of this problem. In a poor country, because delivering public goods and services to all citizens is not affordable, it is cheaper to win the hearts of voters with gifts of rice, meat, salt, and soap. This incentive structure works in reverse in rich countries. Imagine Norway, where the income of the median voter is about $73,000. Here the voter has a decent job, lives in a nice apartment with all modern appliances – a refrigerator, a washing machine, a drier, television, cooker, running water, electricity, a car, etc. If he was to accept the indignity of selling his vote, he may ask for half a million dollars. If one has to bribe 20,000 voters in a constituency, it would cost $10 billion. This makes voter bribery unaffordable. Hence politicians in rich countries do better by campaigning on the platform of service delivery because the state can deliver that, given its high public spending per person. And because their voters are well off they don’t need personal favours from individual politicians. These can be affordably paid through the state. Politicians in poor countries face impoverished voters who demand the aforementioned small favours. These can be paid for from the pocket of a politician better if they have access to unofficial income to pay; hence corruption. The state is too poor to pay for universal access to public goods and services, even if politicians genuinely desired to. Therefore, it does better by allowing elites to steal public funds and bribe voters. That is the context in which we must wonder how Rwanda, a very poor country, has good service delivery. My cousin, Jude Kagoro, a professor at Bremen University, calls Rwanda’s political leaders magicians. He is right.
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cover story
Saleh proposal on ministries will fail Museveni is the problem, insiders say By Haggai Matsiko
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E
fforts by an undercover team to study areas of wastage in government departments with a view to make public service delivery leaner, less costly, and more effective fear running into trouble from an unlikely source; President Yoweri Museveni. This is after several heads of government ministries, departments, and agencies (MDAs) named among the most wasteful dismissed the findings and recommendations of the undercover team led by President Museveni’s brother and confidante, Gen. Caleb Akandwanaho aka Salim Saleh. According to government documents that The Independent has seen, all government MDAs and projects named among the most wasteful should have their contracts terminated by June 30, 2018 in line with a government directive under the Government Rationalisation Plan (GRP). According to the documents, the Rationalisation Plan is to be implemented over three years in three phases. Phase One, lasting six months to June 30, 2018, is the most critical and will involve six main activities. Activities include cabinet approval, which has been done and President Museveni setting up a Technical Adhoc Committee to oversee the implementation of the rationalization, which is pending and seen as the main stumbling block. Other activities include abolition of agencies with expired mandates and implementation of new salary structures. Makerere University Kampala, Uganda Revenue Authority, Kampala Capital City Authority, and Uganda National Roads Authority (UNRA) were named among the centres of wasteful government expenditure. Other wastage, experts say, manifests in how roles are duplicated. For instance on promoting investment alone, Uganda has the Uganda Investment Authority (UIA), the Exports Promotions Board, the Uganda Free Zones Authority and the Uganda Tourism Board. Proponents of the Saleh proposals say one entity can have departments that do what all these entities do and thereby save the taxpayer a lot of funds that goes into cars, fuel, salaries and allowances of hundreds of officials employed by all these entities that duplicate each other’s work. The same applies, they say, to registration services. Here, Uganda has the Electoral Commission, the Uganda Registration Services Bureau (URSB), the National Identification and Registration Authority (NIRA) and the Directorate of Citizenship and Immigration under the ministry of internal affairs. But a head of one of the authorities who agreed to speak to The Independent only on condition of anonymity noted that the problem of wasteful government expenditures was not with the existing institutions but
cover story
President Museveni listens to former Prime Minister Amama Mbabazi at a meeting before the two fell out
Museveni’s government swallows a total
Shs3.36tn in wages
with the government’s tendency to “mix up its priorities”. The head said the government also either lacks the capacity or is not interested in monitoring the implementation of established plans. “It is not because of these mushrooming agencies that we have failed to follow our national development plans,” the official said. Even officials who support Gen. Saleh’s findings and recommendations and also spoke on condition of anonymity expressed fears the proposals would fail. They said President Museveni has not showed too much interest in reforming public service over the years. “The dossier’s good proposals will die a
natural death,” one of them said. It should be remembered that in 2002, President Yoweri Museveni appointed a committee of experts to study the problem of the high cost of public administration. The committee wrote a report on how Public Administration budgeting could be made more effective. “There has been a proliferation of expenditures on activities that escape the full rigors of discipline through the annual budgeting exercise,” the report noted, “Whereas spending on the core civil service has been restrained, there has been an undisciplined growth in spending on commissions, semiautonomous agencies and political appointments. At the time, by 2000/01, Public Administration accounted for 20.2 percent of the total budget outturn (excluding donor aid). Months after Museveni’s directive, on May 21, 2002, then Finance Minister, Gerald Sendaula, at a Public Expenditure Review workshop in Kampala also called for stronger controls over the expenditures of Public Administration. “The Public Administration sector is currently the second largest sector in the government budget,” said the late Chris Kasami, then-Secretary to the Treasury to an audience of donors, private sector executives and government officials on May 21 2002. The following year, the governor of the Central Bank, Emmanuel Tumusiime-Mutebile also called on government to reduce the fiscal deficit, which was being driven by ever increasing Public Administration expenditure and thereby increasing inflationary pressures. Despite being raised severally, these Feb 09 - 15, 2018
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cover story concerns remained largely ignored and the public administration sector has only continued to expand. It is on the basis of this that many remain pessimistic about Saleh’s proposals.
Details of Saleh Dossier
Sources have also told The Independent that the Saleh team was aware that their proposals would attract backlash, and had plans in place to defeat any opposition. They also proposed that the reform of the public service is phased. But since it came out, the dossier has attracted reactions the team did not anticipate. One of the main recommendations of the Saleh team was that government ministries, departments, and agencies whose functions are undesirable, overlap, or are duplicates should be dissolved or merged and only those that are unique in nature are retained.
highly irrationalized wage bill, and how government has been turned into projects and consultancies. The dossier notes that while government had in early 1990s decided to shift public service delivery and regulatory oversight to semi-autonomous agencies on the urging of donors, Uganda’s experience with the mushrooming agencies has not been good. “Service delivery is poor, the cost of running government has increased, and agitation for higher wages has heightened,” the dossier notes, “More worryingly, political leaders who account to the public have lost control over the technocrats.” It added that while other countries that implemented similar reforms had experienced similar problems, they had since reformed to improve public service delivery. Amongst these countries, the dossier
missions and parliament spend over 66% of their budgets on salaries and allowances. As debate on reforming these entities goes on, parliament is constructing chambers that can accommodate about 500 legislators. “Why should small Uganda have 500 legislators,” one of the backers of Saleh’s proposals wondered, “Our economy is too small, we cannot afford these sorts of things.” Mainstream government spends a relatively lower proportion of their budgets on workers. It showed that general staff salaries in Ministries are dwarfed by salaries for contract staff. As an example, the dossier shows that the Finance Ministry spends Shs4.3bn on staff salaries and a whopping Shs.18.7bn on contract staff salaries. While the Health Ministry’s staff salary bill was Shs 5.8bn, contract
cites, Australia, New Zealand, USA, the United Kingdom, Jamaica, and Ethiopia among others. As a result of a bloated government, the Saleh dossier shows that Museveni’s government swallows a total Shs3.36 trillion in wages, of which Shs1.7 trillion (51%) is paid to workers in central government (including agencies) and Shs1.6 trillion (49%) to Local Government workers. It revealed that agencies spend 10% more on salaries than the mainstream public service, yet they employ fewer people. It noted that what it termed as the ‘money-consuming’ Agencies are spending 15 times more on their employees compared to the money-generating Parastatals. In absolute terms, MUK, URA, KCCA and UNRA are the top spenders on salaries. Universities, research institutions, com-
staff swallowed a whopping Shs16.7bn. The report also revealed that duplication of functions was spreading limited resources so thinly. In agriculture, for instance, the dossier shows that resources meant for provision of inputs to farmers, totaling UGX 482.9 billion, were scattered among 17 MDAs in FY 2016/17. According to the dossier, government interventions in the agricultural sector are scattered across 8 Directorates, 20 departments and 37 projects across 5 ministries, at a total annual cost of Shs1.2 trillion. Duplication had also affected skills development, the paper revealed. Government, it noted, spent a total of Shs461 billion on skills development in 2016/17. This was duplicated by the Education Ministry (Shs216.3Bn), Gender
President Museveni's cabinet It was also recommended that since these agencies are established by law, they should be legally dissolved through an act of parliament called a “Unitary Public Agency Law”. It was further proposed that all Agencies, Authorities and Commissions would henceforth be subject to this law. The Saleh team made these recommendations after finding that most of the wasteful agencies were designed to “limit political interference” in their operations. “Agencies took advantage of this to detach themselves from effective supervision and control of their mother ministries,” the Saleh report noted, “They defied coordination and caused ‘Mandate Wars’ leading to poor service delivery.” The Saleh memo exposed duplications and overlaps in ministries, departments and agencies, wasteful spending, a bloated and 12
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cover story (Shs.178.3Bn), and Local Government (Shs.66.3Bn). The dossier also revealed that core implementation of public sector business across government is being undertaken through projects. In 2016/17, the projects totaled 209 and were worth Shs4.9 trillion. The dossier revealed that a huge portion of this money was being spent on non-cores. “Government spent UGX 380.7 billion in FY 2016/17 on consultancies, the dossier noted, “Public servants are using this channel as a coping strategy to top up incomes. The work they are supposed to do within the Ministries is channeled to the consultancies.” The report added that public servants also use consultancies as a sanctuary to conceal their poor requisite skills for the work they were employed to perform. “In the ‘old’ system, policy and imple-
The proposals have already been tabled before President Museveni who is said to be in full support. They have also been discussed by cabinet and related laws are expected to be tabled in parliament to enable enactment of the reforms. Saleh assembled a team that studied government and proposed the reforms. Those close to him say the study was inspired by in-fighting amongst government bodies and a general sense of frustration about poor government service delivery. This had been a subject of intense debate within the ruling party including in cabinet meetings and caucus meetings at the Kyankwanzi-based National Leadership Institute even before the 2016 elections. In all earnest, the president’s brother started working on these reforms after the 2016 elections. Saleh had helped form the new government as several would be
Amama Mbabazi. At the time, many insiders felt that Rugunda who is not known to be a workhorse, is 70-years old, and a known lover of calm diplomatic life, would have difficulty getting his hands dirty with implementing government projects or sifting for corruption in the murky corridors of government. Some attributed this to Rugunda’s calm demeanor. Others said that over the years, Mbabazi had accumulated a lot of powers that his word and directives carried as much weight as Museveni’s. For instance, in cabinet meetings, it was not unusual for Mbabazi to rebuke ministers who were not doing their job. With Mbabazi out, Saleh became a de facto fallback counterweight for Prime Minister Rugunda’s perceived weak points. Smart ministers and head of government departments know that they occasionally
appointees and then serving ministers met and were interviewed and vetted by him in anticipation for appointment or reappointment. Individuals like Brig. Henry Tumukunde, who became Security Minister, and Col. Kaka Bagyenda, an old contact of Saleh, who turned up as the new Director General of the Internal Security Organisation (ISO) are reported to be among those who worked with Gen. Saleh on the public service reforms. The Gen. Saleh memo was finalized in a November memo that became public in December through an Internal Security Organisation (ISO) agent assigned specifically to publicise it. It is said that Saleh had for long been reviewing government performance, especially from the time Prime Minister Ruhakana Rugunda was appointed to replace
have to seek Gen. Saleh’s approval. In turn, Gen. Saleh knows that he must seek President Museveni’s approval to implement certain programs since he does not have the proper legal mandate to act on his own. In any case, Saleh knows that Museveni is a micromanager who does not like any activity – good or bad – to be under taken without his express approval and involvement. For Museveni, however, implementing the reform in government entities to remove duplicates, wasteful spending, and the bloated and highly irrationalised wage bill, is a political hot button. Museveni will either not touch it or decide personally which ministries, departments, agencies, and individuals to touch.
Uganda's parliament has over 400 legislators mentation were both performed by Departments and Desks within the Ministries, under close executive supervision,” the dossier noted, “The current system shifted regulatory and public service delivery functions to agencies. Mainstream government was restricted to the less visible role of policy making.”
Museveni approves
In spite of the reservations surrounding the recommendations, The Independent has learnt that the Saleh team and its backers are clandestinely lobbying for laws to implement it. The move has sparked panic within government circles, especially in the so-called “wet” ministries, departments, and agencies that have some of the biggest budgets and opportunities for wasteful expenditures.
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interview
`Uganda’s oil sector is on the right track’ Susan Eckey is Norway’s ambassador to Uganda. She spoke to The Independent’s Ronald Musoke on the growing bilateral relations between the two countries. Tell us about your impressions of Uganda since you arrived in 2015? ganda is my first posting as a bilateral ambassador. I am a career diplomat and I started my foreign service in 1991. I have brought family and friends here to see all the beauties of Uganda. I love it very much here. My biggest impression has been meeting and speaking with people around Uganda to get an idea of what life is like for Ugandans and I have found that very interesting.
U
How would you describe the current relations between Norway and Uganda? Our bilateral relations are excellent. We opened our embassy here in 1996 but we had had relations with Uganda since the 1960s when young Norwegian Peace Corp volunteers came here and made life-long friends. Uganda is a well-known country (in Norway) and there are many families and private citizens who have friends and relations with their counterparts in Uganda. We cooperate very well at the United Nations and in the regional organizational frameworks. In terms of bilateral cooperation, we have supported Uganda in many sectors; especially in the energy sector, and also have engagements in human rights, good governance, democracy and women’s and girls’ rights. In terms of trade and investment, that too is increasing. We see more Norwegian companies, in particular those in the renewable energy field, looking for opportunities in Uganda. We have had several trade and investment delegations to Uganda over the past two years. We have a Norwegian company that has shown interest in exporting Ugandan coffee to Norway in an innovative way – by subscription. They want to have as much as possible of the value added here. Instead of just exporting the beans, they want to roast the beans here, package and market so Norwegians can pick the coffee in their mail boxes. There is also a company with Norwegian investors which provides sophisticated software to the financial sector in Uganda and in Norway.I am very much excited about all these commercial contacts. 14
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How else have you been promoting trade between the two countries over the time you have been here? In Norway, there is what we call the Nordic African Business Association (NABA) which gathers high level participants from Africa every October. This association is very active and they really try to promote Africa in the Nordic countries. I know that Uganda gets invited and Ambassador (Zaake Wanume) Kibedi who is based in Copenhagen is very active. In 2016, Hon. Peter Lokeris, the Minister of State for Energy represented Uganda as well as the State minister in charge of Kampala. This year the Minister for the Presidency was among the invited dignitaries. We have had trade and investment delegations come
here in both 2016 and last year. But don’t forget that many more Norwegian companies come in just on private initiative. In Uganda, the Nordic Embassies (Norway, Sweden, Denmark and Iceland) cooperate very well with the Nordic Business Association (NBA), composed of Nordic business interests. It has been 25 years of Norway assisting Uganda develop its electricity sector. What have been some of the highlights of this cooperation? We have been in Uganda’s energy sector contributing to the generation, transmission, distribution as well as the legal framework and technical cooperation. We have had Norwegian experts
interview advising the Ugandan government in terms of the energy and petroleum and environmental laws. Norwegian companies, with or without Norwegian aid money, have assisted in the work on the Bujagali, Karuma projects and many other hydro power developments here in Uganda. We have financed quite a bit the renewable energy sector, including transmission and distribution, such as the Nkenda-Hoima line. Lines must not just go from one part of the country to the other, but also reach the people. This is of great need for Uganda so we hope that we will continue to cooperate with the government on those issues. I think that the bigger picture of this cooperation has been that the energy sector has been and remains a key priority for Uganda. How satisfied are you with your government’s goal of helping Ugandans access cheap and clean energy as a means of fighting poverty? Norway like Uganda has vast natural resources; hydro power in particular, so we have lots of experience and Uganda wants to tap into that expertise. That is why we are, or have been working with UEGCL, UETCL, REA and ERA. Moving forward, we would like to continue to cooperate on the technical aspects rather than the oldfashioned hardware cooperation. Last year, we entered into an agreement with UEGCL on training because we could provide the expertise needed. The Ugandan authorities know that they need to deepen and diversify the competencies of their staff and they know that we can supply that. Norway has been an integral part of Uganda’s oil story. How would you describe the journey so far? We have had the Oil for Development Programme in Uganda since 2008. It consists of technical cooperation, expert training and other advisory services. We are currently in the second phase and the third phase will start in April this year (2018-2021). Many countries are interested in learning from the Norwegian petroleum experience through our experts.You have already established many professional entities and seeing from outside we think that Uganda is well prepared. The Ugandan managers and experts the Norwegian experts meet here are highly professional, very serious and very much interested and dedicated to hearing about the Norwegian system in order to adapt and then implement elements of it here. As a result of Norwegian advice, the Uganda National Oil Company, the Petroleum Directorate and other agencies in this field have been inspired by Norway although I know that your experts have also gone to other countries like Nigeria, Equatorial Guinea, Trinidad and Tobago, Ghana, and Angola.
Uganda’s oil sector is on the right track but it is important that the rules and regulations; including the environmental and societal aspects, are respected as you move forward. Transparency on issues related to this sector is a priority in Norway, an element that also Uganda supports. How do you suggest Uganda manages its carbon footprint which will definitely shoot up with the advent of oil production? First and foremost there are new technologies of producing oil. But you also have laws and regulations and standards for producing oil in the best possible way in terms of containing Uganda’s carbon footprint. There are international systems for mitigating and addressing the challenges of such emissions. Norway, for instance, is part of the UN system of REDD (Reducing Emissions from Deforestation and Degradation). This is something we adopted in order to try to be as carbon neutral as possible even with oil and gas production. Last year, the UN joint programme on gender-based violence in Uganda, which Norway was a part of, ended. What were the learning experiences out of that programme? What we saw from that programme is that there is need to have multiple interventions if we are to succeed in combating gender-based violence. You have to engage the men; you have to engage society and the community. You also have to engage the different agencies of the UN. We can see that it is not enough to tell people that you should stop hitting or abusing someone; you have to provide a system for people to change behaviour. That programme showed that there is need to cooperate among the different Ugandan authorities; the local police, the health personnel and protection officers. When they work together, violence is reduced. How do you intend to further the gains realised out of that programme? Norway continues to support various programmes which are aimed at combating gender based violence. I just invited the United Nations and some other colleagues for a meeting on how to go forward with this programme. We agreed to continue to cooperate closely; continue to inform each other about what we do; continue to look at the many aspects of gender based violence. One is certainly in homes but we also had this terrible experience from the infrastructure project where the World Bank had to suspend the project (the Fort Portal-Kamwenge road). So I think that was a necessary and important eye opener. The World Bank is a new and committed partner and is coming in to support the government from the international partners’ side.We
have to look beyond what we have done before. We need to make sure that interventions the international community supports do not have a negative impact on women and children and even men. What we have learnt from the joint UN based programme is that it is possible to reduce gender based violence if Ugandan central and local authorities, civil society organizations and international partners work together. How do you think gender based violence impacts society? First, you will have a large section of society—those who are victims and survivors of this violence— who will have very difficult lives. The societal impact is that they will not be as active and creative. The UNFPA has tried to calculate this and they say the economic impact of gender-based violence is significant. We read almost weekly in the newspapers about defilement and maltreatment of school children, in particular girls. They may stop attending school, and even if they stay on,they are traumatized and find it hard to concentrate. And then you will have young girls who grow up without an education, you will have future mothers without basic educational skills. That of course affects society when you have a population that can hardly read and write, mothers and fathers who cannot guide their children. Education is one of the priorities of the Norwegian government and that includes assisting in terms of keeping young girls in school. Your last word? The issue that has been close to my heart throughout my career is the role of women (in society) and gender equality. There are many women here in Uganda in key positions in society, in politics, administration and business. However, I think there are still opportunities for women, at all levels, to be heard and to be seen participating even more. Women should be treated as equal citizens as men, in all aspects of life. The United Nations Convention on women’s rights (CEDAW) sets out the international legal obligations to protect and promote women. It is a key priority for my government to ensure that there are more women around the decision making tables, making sure that the protection of women happens in the construction of infrastructure projects, making sure that women have the right and access to land, making sure that girls go to school and are accessing sanitary facilities, and making sure that women get justice when they are violated. Impunity for gender based violence must end – in all countries. Women’s rights are about human dignity and human rights, and it is ultimately about what kind of society we want to have – a just and fair society for all. Feb 09 - 15, 2018
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news analysis
Sembuya’s chocolate dreams Young entrepreneur exploits well-kept secret By Andrew S. Kaggwa
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hat Uganda has the largest single owned cocoa farm in Africa is perhaps one of the best kept secrets – and Stephen Sembuya, the co-owner of the cocoa trading and processing firm Pink Foods Industries, was born into it. The cocoa farm, which is on about one square mile – or 640 acres - is in Nkokonjeru sub-county in Buikwe District on the edge of Lake Victoria in the central region of Uganda. Sembuya’s grandfather planted the trees 53 years ago and, over this period, three generations of the Sembuyas have been exporting dried cocoa seeds to Europe. But the young Sembuya who trained in marketing at the prestigious Makerere University Business School (MUBS) is determined to change that - by building of a multibillion shilling factory to process the beans into chocolate at home. Sembuya appears to have been bitten by the industrial entrepreneurship bug from his father, Christopher Sembuya. He was a partner with his deceased young brother, Henry Buule, in what in the 1980s and early 90s was once a household name; the Sembule Group of Companies which dealt in banking, steel smelting and metal fabrication, and electronics production of radios and televisions. Though no longer in existence Sembule’s name still remains as the village where the industries are located in the Nalukolongo in Kampala City’s Lubaga Division is still called Sembule Zone. Pink Foods is already producing chocolate, mainly in huge lumps for industrial use and a few bars for sale to the public in supermarkets. Volumes might rise dramatically in March this year when installation of machinery is completed at the US$1 million (Approx. Shs3.6 billion) factory being built about two kilometers from Kyanja trading centre in Nakawa Division of Kampala City. “When this factory is finished,” Sembuya who is the Chief Executive Officer of Pink Foods Industries says, “The days of people thinking of chocolate as a luxury will be over as it will be more affordable than even bread.” He was speaking from his office in a not so big building which currently serves as the production station. Later, he takes me to the storerooms and shows me one of the chocolate lumps –weighing a kilo – and says they sell it to confectioneries at Shs25,000. He says they cut similar blocks into small bars and sell to supermarkets,
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Sembuya shows chocolate before being turned into chocolate bars.
news analysis hotels, and restaurants. At present Pink Foods needs 500 kgs of cocoa beans for an eight hour shift per day and employs 120 workers both on the farm and the factory. They get most of this from the farm in Nkokonjeru. But they also have out-growers in several parts of Buikwe District.“After the completion of the factory we shall double or even triple our present input but of course we shall need more cocoa beans,” says Felix Okuye, the Executive Director and co-founder of Pink Foods. As part of the plan, Okoye says Pink Food is banking on the over nine million seedlings which the government gave to farmers under Operation Wealth Creation to increase production in the cocoa growing areas.
The dream starts
Sembuya says they got the idea of adding value to cocoa way back in 2009 but first had to research several aspects of the business; for instance on the market. He says, however, they were only able to go into production in 2014. Apart from chocolate, other products Pink Foods Industries produces are cocoa butter, drinking chocolate, and cocoa beans for export. Sembuya and Okoye say the views many people have about chocolate are misperceptions. “Many people say they can’t afford chocolate because they have not entered a supermarket to buy a chocolate bar but if one eats cakes then you know you are indirectly eating chocolate because it one of the ingredients,” he says. They explain that chocolate does not have to be expensive. “People say chocolate is a luxury because of the cost,” Okoye says. He says the reason for the high price is because Uganda, and most cocoa growing African countries, have been exporting unprocessed cocoa beans to Europe and importing chocolate from countries like Switzerland at a high cost. “Chocolate which is produced here should even be cheaper than bread,” Okoye says. He explains that, apart from the packaging materials, all raw materials they use to make chocolate at Pink Foods are locally produced unlike bread where wheat which is the main ingredient is imported. Another likely success for Pink Foods chocolate is the emphasis placed on quality. In order to maintain quality of inputs, Pink Foods insists on buying cocoa pods fresh from the farm of their out-growers and processing them. Okoye says they keep in touch with the farmers and, on a harvest day; move out with lorries, weighing scales, and containers, to collect the fresh cocoa from the farms. At the farms the cocoa pods are cut and the wet cocoa seeds with its pulp are weighed and the farmers paid on the spot. Because they get fresh cocoa beans from
the farmers, they calculate the pay at the ratio of 100 kgs of fresh cocoa to 30-40 kgs of what they would have paid if they were dry. The ratio depends on the season which has an effect on the moisture content. Therefore, if a farmer supplies them with 100 kgs of fresh beans they pay them the equivalent of what they could have paid for 30-40kgs of dried beans. Okoye says although they buy fresh cocoa pods instead of dried beans, they ensure that the farmers get a fair price because they operate under the Fair Trade arrangement where they are supposed to pay competitive prices to farmers for their produce. “Like for other products sold on the international market, we have to continuously be online to monitor the stock exchange to know what the international prices are,” Okoye explains. From the farms, Sembuya explains that the cocoa beans are taken to the factory where the pulp is removed and they are put in wooden boxes for fermentation. This process usually takes about seven days.
A girl eat chocolate produced by Pink Foods After the fermentation the beans are put out to dry or using solar driers and this process takes between five to seven days depending on the weather. After this, the husks are removed from the brown beans which are then taken to the industry for processing depending on what product they want.
The cocoa business
Sembuya says that at the moment they use about 11 tonnes of dried cocoa beans per month with four tonnes coming from their farm and seven from the outgrowers. Apart from their farm and outgrowers in Buikwe at times they have to get cocoa beans from districts as far Bundibugyo, which is the largest cocoa growing district, Luweero, Kayunga and Mukono. Under their umbrella association called Cocoa Farmers and Chocolate Processors Association they also carry out training. For those wishing to invest in cocoa growing Sembuya says you need about 400 cocoa
seedlings per acre but they advise the cocoa to be interplanted with trees preferably ‘musizi’ for shade. He explains that from the day of planting a seedling, if well looked after a cocoa plant takes only two years and is ready for harvesting. The harvesting can go on for another 80-100 years and he gives the example of the cocoa in the West African countries of Ivory Coast and Ghana which is now about 100 years since being planted when the colonialists came to Africa but they are now just talking of replacing the trees. “Another good thing with cocoa is that it has not been attacked by any serious diseases like for coffee and they only deal with the black mites; which are controlled by light spraying,” Okoye says.
Cocoa tourism
Apart from producing the cocoa pods from which the cocoa beans for the production of chocolate is made, Sembuya says they also use the farm for chocolate tourism and chocolate classes. “There are many people who don’t know that chocolate is produced from cocoa on farms so we allow them to have guided tours on our farm and take them through the process of how chocolate is produced and many are surprised when they discover the chocolate they buy from supermarkets comes from,” Sembuya says. He explains that most of the tours are organised by schools. On the way forward they say they are doing research on how to turn the husks from cocoa into chicken feed like it’s done for maize barn and rice husks. They are also looking at a possibility of turning pods into soap and the pulp juice into wine. “Our vision in 10 years is for Pink Foods Industries to be the leading food business in Africa,” Sembuya says. Since they are in the Fair Trade arrangement, where they are required to give back to the community, Sembuya says they have plans to build a health centre in Nkokonjeru Town Council.
Sembuya’s business style
Sembuya says he has a good relationship with his father who gives him advice almost on a daily basis on how to run the business. “One thing he warned me about is taking on bank loans,” Sembuya says and explains that Uganda does not have development banks but only commercial banks which are only after maximizing profits and its why they charge high interest rates and end up selling off properties of people who fail to pay their loans. Indeed Sembuya and Okoye say the money they are using to construct the new factory is not a loan from a commercial bank as many banks did not understand their business plan and were asking for unrealistic security and collateral. Feb 09 - 15, 2018
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news analysis
Africa’s new man at IMF
Top job for South African Lesetja Kganyago gives African countries sway By Danny Bradlow
How can they make the most of the opportunities created by Kganyago’s appointment?
S
outh Africa’s Reserve Bank Governor, Lesetja Kganyago, has been selected as the first sub-Saharan African to serve as chair of the International Monetary and Finance Committee. The chair is appointed by consensus. The threeyear appointment is not only an impressive personal achievement; it’s also a significant opportunity for South Africa and the African continent. The finance committee plays an important role in global economic governance. Its 24 members, who are ministers of finance and central bank governors, represent constituencies of the International Monetary Fund’s (IMF’s) Board of Governors. It meets twice a year to discuss an agenda prepared by the IMF’s managing director and the committee’s chair. Its mandate is to advise the board of governors which is the IMF’s highest decision making body. The committee’s remit is to oversee the “supervision and management of the international monetary and financial system” and to provide strategic guidance to the IMF’s management and board. Kganyago is becoming chair at a sensitive time. For almost 70 years, the global economy and global economic governance institutions like the IMF have been dominated by the U.S. This dominance had been slowly eroding. Under President Donald Trump the process is accelerating. The U.S appears to be retreating from full engagement with the world and is rapidly losing its authority as the responsible leader of the global order. This fluid situation will create both opportunities and risks over the next three years. If well managed, the changing balance of forces could lead to global economic governance arrangements that are more representative and more focused on promoting a sustainable and inclusive global economy. But if mismanaged, they could precipitate a breakdown and generate a more volatile and anarchic global economic environment. The IMF will play an important role in shaping the international community’s responses to these opportunities and risks. Its views will influence the advice it gives its member states, the conditions it attaches to the financial services it offers them, and its selections of topics for its publications and research activities. They will also affect its willingness to adapt its governance arrangements to the changing global order. 18
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Gains to be made
The IMF’s high profile and the role of the finance committee in its affairs mean that Kganyago’s appointment creates the opportunity for some African gains in international economic diplomacy.
Opportunities
Given the realities of global power relations, African countries must measure progress in international economic diplomacy in millimetres, not centimetres. At its core, global economic diplomacy is about how the global economy is structured, how decisions about its functioning are made and whose interests it serves. Unsurprisingly, the rich and powerful countries have the strongest voices in global economic governance. They pay careful attention to issues that affect their interests and their control over the global economy. The realities of power mean that they are likely to get their way on these issues, regardless of the merits of their views. But developed countries also know that there is a cost to imposing their views on other states. As a result, they tend to be more open to persuasion on issues that affect them less directly. Thus, at the margins, African countries can expect to win some concessions. But this will only happen if they are clear-eyed about global political and economic realities. They will also need to carefully pick their issues to effectively make their case. The scope for making gains obviously expands if their representatives play a leading role in the institutions of global economic governance.
First, although the global economy is in better shape, it’s still subject to a great deal of uncertainty. As major central banks raise interest rates they could cause problems for sovereign and corporate debtors in developing countries. There are also significant geopolitical, technological, and environmental risks. Having an African as chair of a major global economic governance committee could help ensure that the concerns of African countries receive appropriate attention. Second, as the global order evolves, more attention will need to be paid to adapting the governance of the IMF and the other institutions of global economic governance. Inevitably, most attention will be paid to the concerns of the major powers– old and new. The interests of Africa, the most underrepresented region in global economic governance, can easily be ignored in this context. But having an eloquent and respected African as the chair of a major committee will mitigate this risk. Third, Kganyago’s appointment can facilitate better relations between Africa and the IMF. Historically, many African countries have found the social cost of its assistance extremely high. Nevertheless, there are a number of African countries, including South Africa, which could find themselves being forced to seek IMF assistance over the next three years. In this event, having a senior government official in a high profile international finance position could be very helpful in facilitating dialogue with the IMF. Kganyago can help make sure that the IMF fully understands the governance and institutional challenges that African countries face. This should help in the push to create sustainable and inclusive economies that have a realistic chance of meeting the 2030 sustainable development goals. Kganyago’s appointment creates the possibility for African countries to move global economic governance a few millimetres in their direction. It’s not an insignificant development in international economic diplomatic terms. Danny Bradlow, SARCHI Professor of International Development Law and African Economic Relations, University of Pretoria Source: The Conversation
rwanda
The pride of liberators 3 Rwandan war heroes give moving testimonies on 24th Heroes Day By Francis Byaruhanga
J
onathan Muvunyi was 18 years old but already fighting to liberate his country with the Rwandan Patriotic Front (RPF) when he was injured in 1994. He was hospitalised in Byumba from 1994 to 2008. The government built him a free house. He adopted three children and his last-born is graduating from university this year. “I am so happy for my country’s development,” he says, “We got what we fought for.” Protogene Biraguma was also 18 years old and a fighter with RPF when he was hit by enemy bullets in Kibungo, now Ngoma. He was hospitalised in Kibungo Hospital from 1994 until 2008. The government later gave him a free house to live in and start his own business.
John Ndekezi, President of the Injured Soldiers of the War, Kibaya Village, says he joined the army in 1991 and got accident while driving at Ruhengeri. However, he says, despite the resultant physical disability which led him to start using a wheelchair, he is well and looking after his two children and three that he adopted. “We really thank our leadership for always remembering us,” he says, “They didn’t let us beg for food on the street.” These are some of the moving testimonies that Rwandans heard on Feb.01 as they marked Heroes Day with celebrations organised at village level under the theme of “upholding heroism to build the Rwanda we want”. At national level, President Paul
Kagame and other senior government officials laid the wreath on the graves of the Heroes at National Heroes Mausoleum in Remera, Kigali. The Chairperson of the Chancellery for Heroes, National Orders and Decorations of Honour, former Prime Minister Dr. Pierre Habumuremyi, said heroism with a Heroes Day lies in the need to preserve the good example that was set by some of the freedom fighters and that other young Rwandans could emulate them. He said the country was liberated through the miracles and added, however, that many individuals made sacrifices and they need to be honored. Some speakers at the grassroots, such as Sylvestre Nyandwi; the Executive of Kamashahi cell in Kanombe, Kigali, said there is a Feb 09 - 15, 2018
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rwanda need to teach heroic virtues to the youth so that it could be a legacy to all Rwandans. He urged the youth present at the function to shun vices like drug abuse, prostitution, and alcoholism that could potentially ruin them and limit them from becoming Rwanda’s future heroes. “You cannot grow in the destructive lifestyle and then expect to be a hero,” he said and cited some of the Rwanda’s prominent heroes including Michel Rwagasana, King Rudahigwa and Fred Gisa Rwigema.
Legacy of heroism for youth
Aridee Ntwari , the Executive Director of the Foundation for the Youth Future; an organisation that fights drug abuse and promotes the betterment of the youth, said heroes day means conserving what was achieved. He added that the present generation must foster development through mobilising the youth to avoid vices that could hinder development of the generation of tomorrow. Felix Manzi, The program officer, National Youth Council, advised the youth against aping negative western culture that erodes the rich Rwandan culture. He named the rate at which the youth are discarding the names of their forefathers in favour of western names as a form of cultural imperialism. He said it is better to retain the names of their forefathers and urged the youth to embrace heroic values and practice them through finding solutions of their problems. For instance, he said, the main contemporary problems are the lack of jobs and unemployment. He said youth could turn these challenges into opportunities.
Protogene Biraguma
Jonathan Muvunyi
The Injured freedom fighters speak out However, as these reports show, it is the testimonies of the survivors that are the most moving. The Independent bring you some of them: PROTOGENE BIRAGUMA was injured in 1994 in Kibungo, now Ngoma. He was 18 when he was Injured by a bullet, he was hospitalized in Kibungo hospital from ‘94 until 2008. He received a house and started a business, the bar he owns. He says he was inspired by other heroes of Africa who fought and liberated their countries like Mansa Musa, Shaka Zulu,King Menelik II of Ethiopia, Mwanga of Buganda, and many more others. He says those heroes fought colonialism and, as a result, some of their countries – like 20
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John Ndekezi
Ethiopia, were never colonized. JONATHAN MUVUNYI was 18 when he was injured in 1994. He was hospitalised in Byumba from 1994 to 2008, when he received a house. He adopted three children and his last-born is graduating from university this year. “I am so happy for my country’s development,” he says, “We got what we fought for.” He says todays heroism should be shown through development and economic prowess of the country as the war of bullets has been put to an end. JOHN NDEKEZI, President of the Injured Soldiers of the War, Kibaya Village, says he joined the army in 1991 and got accident while driving at Ruhengeri. However, he says, despite the resultant physical disability which led him to start using a wheelchair, he is well and looking after his two children and three that he adopted. “We really thank our leadership for always remembering us,” he says, “They didn’t let us beg for food on the street. “When we were fighting during the war we had the right cause of ending refugee hood, seclusion, and ethnic division among other bad governance practices. Though, this meant that our brothers attacked Rwanda as a result of the need to end the dictatorial regime, on a positive note all that we were fighting for was achieved. Therefore, we have no regrets for losing the physical fitness of our bodies while liberating the country,” he says.
State-owned enterprises saddled with losses
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By Julius Businge ganda’s state-owned enterprises seem to be bleeding. The latest Auditor General’s report shows that five out of the 29 state owned enteprises recorded losses in the recent two consecutive years. They include; Bank of Uganda (BoU) whose loss reduced from Shs 164bn in FY2015/16 to Shs 72bn in FY2016/2017; Uganda Electricity Distribution Company Limited whose loss increased from Shs 9bn in FY2015/16 to Shs 16bn in FY2016/17; Mandela National Stadium whose loss almost doubled from Shs 323 million in FY2015/16 to Shs 669 million in FY2016/2017; Uganda Seeds Limited’s loss reduced from Shs 67 million in FY2015/16 to Shs 48 million in FY2016/17 and NEC Tractor Project recorded a loss of Shs 126 million in FY 2015/16 compared to Shs 31million in FY2016/2017. The Auditor General, John Muwanga, cited poor corporate governance, wasteful expenditure, and inadequate staff in some of the enterprises as some of the reasons behind the entities poor performance. He also cites government’s laxity in monitoring these enterprises.“Government is advised to review the operations of these enterprises with a view of turning them into profit making organisations,” the AG’s report reads in part. He also said management of the affected entities needs to ensure adequate financial planning and adherence to regulatory requirements in order to avoid wasteful expenditure. Beyond the five enterprises that recorded losses for two consecutive years, the report notes that 10 companies witnessed a decrease in profitability while 16 recorded improvement in profitability during the same period under review. For instance, Kilembe Mines Limited saw its profits tumble from Shs 35bn to Shs 440 million, Nile Hotel International Limited from Shs 12bn to Shs 1bn and Uganda Post Limited from Shs 1bn to Shs 4.4bn loss. Uganda Electricity Generation Company Limited saw its profits plunge from Shs 13.5bn profit to a loss of Shs 13.9bn during the same period under review. Only one state-owned enterprise, Uganda Property Holdings Limited, declared a dividend for the year under review amidst recording Shs 2.9bn loss in FY2016/2017 compared to a profit of Shs 1.4 billion recorded in the previous financial year.
John Muwanga
Cash, debt and asset use
The AG, however, said their analysis shows that the state enterprises liquidity ratio is still within the threshold and are therefore still able to meet their current or debt obligations and still be able to fund their operations. He said the higher the ratio, the better, adding that the ideal liquidity ratio threshold is one (1). “I noted that the liquidity ratio of 24 entities were above the threshold while five entities were below the threshold. I further observed that 12 out of 29 entities had improved their rations from the previous year,” Muwanga said, advising the government to ensure that liquidities are improved. He explained that although the risk levels vary from industry to industry, a debt ratio of more than 50% is not considered ideal. He noted that eight enterprises had debt ratios of more than 50% implying that their total assets were not sufficient to cover their total debt. He identified those enterprises in red in terms of debt ratios as NHCCL, UEGCL, UETCL, UEDCL and NWSC indicating that more of these enterprises’ assets are being financed by debt. On a positive note, some entities have reduced their debt-to-asset ratio in the year under review compared to 2015/16. For state entities with more than 50% debt ratio, the AG says, there is need to strengthen their internal operations and ensure proper balance of use of debt. The other indicator that the AG considered was; Return on Assets (ROA) – a measure for the profitability of an enterprise
relative to its total assets and how efficient management is using the enterprise’s assets to generate earnings. The AG report indicates that some enterprises performed worse in FY2016/17 than the previous year on ROA. These includes; Kilembe Mines Limited, Nile Hotel International Limited, NEC construction Works and Engineering. Overall, compared to the previous year (2015/16), 11 entities had improved their ROA, the AG report reads in part. “Government should review the poor performing entities with a view of coming up with a strategy to revamp performance or else recommend divesture,” he said. One of the components in the revamping strategy, the AG says, would be for government to capitalize and revamp the operations of some of these enterprises since its policy to invest in critical sectors of the economy makes a lot of sense. Responding to the issues raised by the AG, Finance Minister in charge of investments, Evelyn Anite, told The Independent that the government respects the AG report findings and would study enterprises and make necessary adjustments regarding their operations. She said that the Ministry of Finance, the Office of the Prime Minister and that of Public Service are working on proposals for possible merging of some of the state enterprises and agencies as directed by President Yoweri Museveni towards the end of last year. “The Auditor General’s report is coming as a reinforcing measure or tool in line with the President’s directive,” Anite said. Independent experts hold similar views but differ in some ways. William Nyakatura, the corporate advisor at the African Alliance Uganda Limited and Lawrence Bategeka, the Member of Parliament for Hoima Municipality and vice chairperson for the committee on national economy in Parliament told The Independent that closing non-performing enterprises would not be a viable option as it would not only increase unemployment but also create a monopoly market for private players. “State enterprises have to be there to check prices in the market,” Nyakatura said. Bategeka said: “Divesture was advanced for clear reasons and that has never gone away; instead of us having these loss making enterprises, we would rather have alternative ways of delivery of those services through private sector partnerships.”
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business
New accounting standard to make loans, insurance more expensive Experts say financial institutions to prefer extending short term loans By Isaac Khisa
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ganda’s banking and insurance industries are envisaging good times ahead as they embrace the new global accounting standards effective this year. The bad news is that borrowers and insurance buyers are going to find it more stressful to acquire long terms loans or debt facilities as the two industries increase scrutiny of their activities and requirements for worthy collateral. The new accounting standard known as International Financial Reporting Standard 9 or IFRS 9, which came into effect last month, requires banks and insurance companies to make appropriate provisions in anticipation of future potential losses, rather than the former practice, International Accounting Standard 39 (IAS 39) , of providing provisions only when losses are incurred. This signals that banks as well as insurance companies that offer their policy covers on credit will have to recognise provisions from the day they extend any loan or service or credit to minimise losses that could lead to their collapse. For that, financial experts say the cost of accessing loans and other financial services on credit are expected to go up as banks and insurance companies make potentially higher provisions, especially for clients with high credit risk profiles to cover up potential credit losses. Financial institutions will also restructure their credits, emphasising short term loans compared with long terms loans to minimise chances of default, says Paddy Mugambe, a consultant on Financial Management at the Uganda Management Institute. “Additionally, financial institutions will reduce unsecured loan facilities to customers within the transition stage of IFRS 9 replacing IAS 39,” he told The Independent in an interview. Mugambe said financial institutions will also see reduced profits being reported due to higher credit provisions being recognized, a situation that could lead to capital depletion in the short run.
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Emmanuel Tumusiime Mutebile
Paddy Mugambe
Fabian Kasi
He said the new reporting standard will drive credit facilities towards sectors or industries that are doing well and less to those sectors or industries suffering, a scenario that would see various sectors that are deemed riskier experience stagnation in growth. In the long run, however, Mugambe says the new reporting standard will enhance and improve on their client screening processes before the extension of especially long term loans and this will most likely reduce on the default rates on such loans. “The new standard will also lead to increased efficiency owed to the need to review the expected credit loss annually with a view of avoiding use of life expected credit loss,” he said, adding that the new financial standard will ensure that banks and insurance companies are adequately capitalised. The development of the IFRS 9 in 2014 by the London-based International Accounting Standard Board (IASB), was in response to the 2008/9 global financial crisis in which financial institutions were unable to book accounting losses until they were incurred even when they could see them coming. The new standard deals with accounting for financial instruments such as loans and advances, customer deposits, government securities, cash, borrowings, other debtors and creditors as well provides guidance in classification and measurement, impairment and hedging of these financial instruments. This is to ensure that financial institutions recognise and account for risk more prudently. The IFRS 9 also introduces a new requirement of calculating credit risk associated with credit and overdraft limits, letters of credit, performance and financial guarantees and requires that institutions recognise risk of default at the beginning and during the entire credit life cycle. “Financial sectors especially banking has been vibrant with extending loans that do not need collateral security,” Frederick Kibbedi, the vice president of the Institute of Certified Public Accountants of Uganda (ICPAU) told The Independent. “Financial institutions will now need to factor in securities held as collateral on loans
IFRS 9 is not a converged standard.
Overview of the model business
- for IFRS 9 model impairment based on changes in credit quality since initial recognition:
bearing in mind on how they will be sold in case the client fail to pay back the loan.” Kibbedi said there’s going Change in credit quality since initial recognition to be ‘too much’ pressure on customers to repay their loans or credit as financial Recognition of expected credit losses institutions strive to minimise any chances of default. 12-month expected credit Lifetime expected credit Lifetime expected credit This new development losses losses losses comes at the time the country’s banking industry anticipates a slow growth in their profits for Interest revenue 2017 as a result of slow private Effective interest on amortised sector credit uptake amidst Effective interest on gross Effective interest on gross cost carrying amount a reduction in interest rates carrying amount carrying amount (that is, net of credit allowance) from an average of 24% last February to around 18.9% at Stage 1 Stage 2 Stage 3 the moment. Latest data from Bank Performing Underperforming Non-performing (Initial recognition*) (Assets with significant (Credit-impaired assets) of Uganda shows that the increase in credit risk since banking industry’s net profit initial recognition* ) dropped from Shs541 billion in December 2015 to Shs302 billion in December 2016 citing (*) There is specific guidance on purchased or originated credit- credit, and that they must always be reduction in private sector institutions had finalised on the from the general model: purchased or originated credit-impaired assets below). adequately capitalized. credit. compliance requirements but were “There may also be a tendency to The industry’s Nonfacing challenges in obtaining Stage 1 includes financial instruments that have not had a significant increase in credit give more short term loans so as to roll performing loans (NPLs) to reliable data on credit transactions. risk since initial recognition or that have low credit risk at the reporting date. For these back the provisions sooner than later total gross loans rose from Sekabira said data on small and Under the to minimize effect on capitalization 5.3% to 10.5% in the period medium-size enterprises (SMEs) assets, 12-month ECL are recognised and interest revenue is IFRS 9, loans and of banks,” he told The Independent, between December 2015 and — the largest pool of borrowers — calculated on the gross carrying amount of the asset (that is, without deduction for credit credit will be adding that the prices of letters of credit December 2016; this led to a was only available for two years classified in three allowance). 12-month ECL are the expected credit losses that result from default events guarantees performance bonds, and slowdown in private sector whereas data covering 20 years of ‘stages’ – perthat are possible within 12 months after the reporting date. It is not the expected cash unutilised overdraft limits are likely to credit growth and a drop in inflation, economic growth rates, forming, undergo up. bank profitability. exchange rates and clients’ credit performing and Insurance firms will also tighten However, return on assets history was required. impaired. When their scrutiny prior to issuing policies for the industry declined However in Kenya, guidelines a loan is made, to individuals or companies on credit, from 2.6% in 2015 to 1.3% in issued by the Central Bank (CBK) which is stage 2016; return on equity almost last December allowed banks a one, the lender IFRS 9: Expected credit losses said Wilson Kaindi, Senior Manager PwC 2 Audit at KPMG during the insurance declined by 100% from 16% in five year transition period during must make proviindustry’s CEO meeting held in December 2015 to 8.3% in the which expected losses charged sion equivalent Kampala on Jan 25. same time in 2016. on income should be recouped to the expected At the moment, Bank of Uganda is However, on the positive to avoid eroding the banks’ loss on it over 12 preparing commercial banks on how note, the cost to income ratio core capital. It also proposed months. to absorb and conform to the new reduced by 2.2% to 67.2% in CBK provisions above the IFRS If the credit risk IFRS 9, said BoU Governor, Emmanuel December 2016. 9 requirements be charged on increases but the Tumusiime Mutebile, during the This development also reserves instead of on income. loan is still good, Uganda Bankers Association dinner in coincides with slow growth in “During the transition period, it moves to stage Kampala on Jan 31, 2018. Uganda’s insurance industry, institutions should disclose in their two, and it is “The BoU issued a Circular to all whose penetration has published results their core and where the lender supervised financial institutions (SFIs) remained below 1%, behind total capital ratios both before and has to increase on July 12, 2017 requiring them to Rwanda, Tanzania and Kenya, after the additional expected credit the provision to submit reports on their preparedness to whose insurance penetration loss provisions have been added the expected loss implement IFRS 9 as well as the impact stands at 1%, 2.3% and 3.4%, back,” the bank said. over the life of the of the standard on Capital Adequacy,” respectively. loan. What next? If the loan goes he said. Banks to be cautious with bad, it passes to Going forward, Kibbedi said The reports submitted indicated stage three, with financial institutions will be that SFIs were at varying stages of issuing loans the provision required to train their staff to preparedness with regard to putting in similar to those Fabian Kasi, the managing ensure that they do not simply place the requisite IFRS 9 Governance of stage two, but director at Centenary Bank, lend out cash but also follow Frameworks, Policies, Procedures and from then on the who also doubles as chairman up their clients as well as their Information System capabilities. The bank books less of Uganda Bankers Association activities for purposes of loan BoU will continue to assess the banks’ interest revenue (UBA), said with the new recovery. IFRS 9 implementation programs.” in proportion to financial standard, banks Earlier, the director for commercial the expected loss will be more cautious as they banking at the BoU Benedict Sekabira on the loan. extend loans and other lines of told The EastAfrican that financial
How loans will be will be classified under the IFRS 9
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business Executive
Style
Synergy Partners offer opportunities for affordable housing As Team Leader at Synergy Partners, what’s your leadership style like? ine is more macro based, where I have a certain set of mangers that are empowered to make decisions. However, there are times when we are all stretched and have to work on projects together or interchange roles with the top management. We also have time when we brainstorm on certain issues.
M
You manage six estates. What exactly does this entail? We have the Commercial Forestry and the Residential. What we did differently for Residential is to organise communities that have a certain set of order. When anyone buys land from us, they become part of our housing association. Our management entails managing associations of the different housing estates. Each single land owner pays a certain amount of money ranging from Shs6, 000- Shs7, 000 a month, which is collected into a pool and we manage the grounds. This is to ensure that when somebody finishes a house before the rest, they don’t find themselves in a bush. That money is used to manage the community parks, chemical spray the roads, among others. If you go to any of our estates, you will notice that there’s distinction between us and the typical land developer. 24
Jaffar Tonda is the Team Leader at Synergy Partners, a real estate developer. He spoke to Ian Katusiime about the real estate sector in Uganda and its prospects. There is a tree component in your housing estates. What explains this? Our primary thing is Residential. Our going into trees was us delving into social entrepreneurship. What we do is, we sell people land and there is still an aspect of land development. But we asked ourselves; how can we contribute to a sustainable environment? We thought about tree planting as a way of mitigating the risk the world is facing – climate change. And since we were good at opening up land, we created an investment
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product where people could buy land and we help them plant and maintain trees. This product has worked well because we have so far opened up about 1,000 acres. We have onboard different individuals playing their part to mitigate climate change even those living abroad that we have never met. The economy has been sluggish for the last few years. How do you keep going? In economics, there is something called effective demand – a desire backed
by people’s ability to pay. It helps create products that people can afford. Our model is incremental housing project where people buy land first in our gated housing estates and then build incrementally with our support. We therefore do things that give our customers a payment plan on land. Even if a piece of land is worth Shs10million, the typical customer will deposit Shs2million and we give them a payment period of 6 months to 1 year and that matches well with people’s income. As a result we have been able to survive this slowdown. Yes, there has been a bit of decline in sales but our product is more matched with the affordability of the people. We are not like those developers who build homes of Shs300-400 million yet there’s high mortgage and interest rates. We target people who earn between Shs2million a month all the way up. Right from the start of this company, my dream was to build a housing estate where even my maid can own a house. What is your outlook of the real estate market this year? I don’t see anything in terms of our economic growth. I don’t see any driver; agriculture which is the backbone has been hit hard by climate change. When you look at the economy, you don’t see much changing. That is how I see it but unfortunately, I am not very optimistic.
business TRADE
INFLATION
Uganda, South Africa in new trade tries deal
Amelia Kyambadde and her South African counterpart, Gratitude Bulelani Magwanishe
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ganda’s trade minister, Amelia Kyambadde and her South African counterpart, Gratitude Bulelani Magwanishe, signed a declaration on Jan 30, 2018, in Pretoria, South Africa recognising the imperative to build a mutually beneficial trade and investment relationship that supports the industrialisation imperatives of the two AVIATION
African carriers’ post 15.6% growth in freight volumes-IATA
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frican carriers’ posted the fastest growth in year-onyear freight volumes, up 15.6% in December 2017 and a capacity increase of 7.9% boosted by strong growth in Africa-Asia trade, latest data from the International Air Transport Association (IATA) shows. This contributed to an annual growth in freight demand of 24.8% in 2017 – the fastest growth rate of all regions. This is the second time African airlines have topped the global demand growth chart since 1990. Capacity in 2017 increased 9.9%. Globally, the demand for air freight grew twice the pace of the expansion in world trade (4.3%) owed to demand for manufacturing exports as companies moved to restock inventories quickly. “Air cargo had its strongest performance since the rebound from the global financial crisis in 2010. Demand grew by 9.0%,” said IATA’s Director General, Alexandre de Juniac. “We also saw improvements in load factors, yields and revenues.”
Uganda’s inflation drops to 3%
countries. The ministers met during the 2nd South Africa – Uganda Joint Trade Committee (JTC) Meeting in Pretoria that took place from Jan 20-30. The meeting followed the 1st JTC held in Nov 2015 in Kampala to strengthen trade relations between Uganda and South Africa. Kyambadde underscored the need to reduce the widening and imbalanced trade and investment flows between the two countries. She said there has been an increase in South African Companies operating in Uganda yet the number of Ugandan Companies operating in the South Africa remain minimal. Currently, there are over 60 South African companies in Uganda including Stanbic, MTN Uganda, Shoprite, Game, Eskom and Woolworth. Magwanishe said Uganda need to work harder towards improving her exports to South Africa.
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ganda’s Annual Headline Inflation for January 2018 dropped to 3% from the 3.3% registered in December last year while Core Inflation fell to 2.6% from 3% , according to the latest figures provided by the Uganda Bureau of Statistics (UBOS). This is lower than the 5.9% and 5.2% respectively, recorded in January 2017. The decline in inflation raises hope that the industry regulator, Bank of Uganda, might further lower the Central Bank Rate in the next Monetary Policy slated at the end of this month. CBR currently stands at 9.5%. This comes at the time a number of commercial banks have lately announced a reduction in their interest rates in response to the declining CBR, with Stanbic Bank now offering the lowest rate at 17.5%. Earlier, Louis Kasekende, the Deputy Governor, BoU, had indicated that the near term inflation outlook would remain subdued but core inflation projected to pick up in the Financial Year 2018/19
TRAVEL
Tanzania unveils e-passport
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n Jan 31. Tanzanian government unveiled an electronic passport to enhance national security, control illegal immigrants and play a key role in revenue collection. President John Magufuli said the new development is part of efforts to improve
productivity and simplify service delivery. He also directed the immigration officers to come up with strategies that deliver results in the control against illegal immigrants, and that hence forth disciplinary measures would be taken against regional immigration offi-
cers who fail in their duties. The e-passport will be available at a cost of TSh150, 000 valid for 10 years. The project was implemented in collaboration of the government of Ireland and the service provider the US based, HID Company at a cost of $57.82 million.
AVIATION
Kenya Airways’ Non-Stop flight to Cape Town
K
enya’s national carrier, Kenya Airways, will unveil non-stop Nairobi-Cape Town flights starting June this year in what appears to be a new wave of expansion. The airline will operate three times a week, every Wednesday, Friday and Sunday, using a Boeing B737800NG aircraft. It will also continue to operate its four flights a week route via the Zambian city of Livingstone and three flights routing via
Zimbabwe’s Victoria Falls with traffic rights on all sectors. This comes barely three weeks since the country’s
national carrier started selling tickets ahead of their inaugural flights to New York, USA, in October.
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business
Stanbic joins URA’s e-payment platform By Julius Businge
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State Minister of Finance for Investment and Privatization Evelyn Anite (R) with Chinese Ambassador to Uganda Zheng Zhuqiang (2nd R) Uganda’s Prime Minister Ruhakana Rugunda and Minister for Science Technology and Innovation Elioda Mwesigye during the unveiling of the foundation stone of the launched China - Aided industrial skills Training and Production Centre project in Uganda on Jan 25, in Namanve industrial park Wakiso district. INDEPENDENT/JIMMY SIYA
Julius Mukunda, (L) CSBAG National Coordinator and Wouter Dijstra, director and founder Trac. Fm, brief the media during the release of a survey on citizens budget priorities on Fab.1. Civil Society urged government to re-assess its expenditures priorities and ensure that they directly serve the interests of the citizens to improve their quality of life. INDEPENDENT/JIMMY SIYA
Minister of State for Trade, Industry and Cooperative Micheal Kafabusa Werikhe (3rd R) during the official launch of the ship by Mango Tree Group on Jan 24 at Entebbe. The Minister said the ship was launched to ease water transport on Lake Victoria by connecting Uganda to other countries through water transport. INDEPENDENT/JIMMY SIYA 26
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imes of visiting banking halls and Uganda Revenue Authority (URA) offices to file tax returns could be over as the tax body continues to partner with financial institutions and telecom companies to offer online payment solutions. Stanbic bank, which collects a third of URA’s annual revenue target, is the latest bank to join URA’s online platform to enable tax payers use its VISA card, MasterCard or MTN mobile money to pay taxes in the comfort of their offices, homes and other convenient places using internet enabled devices. Speaking at the launch of the platform on Feb.05 at URA headquarters in Kampala, officials said in order to use the new payment solution, one would have to log onto the URA website (https://ura.go.ug) and request for a payment registration number (PRN), then use the Stanbic payment tab by simply entering the relevant Visa/MasterCard or MTN mobile money account details and following the prompts. The new partnership comes
at a time government agencies are inventing measures to support private sector growth through easing the cost of doing business across sectors. URA’s platform with Stanbic has been operational since December last year as a pilot and has facilitated payment and collection of Shs 74 million as at Jan.31. Meanwhile, similar partnerships with other banks – United Bank of Africa, Barclays and Orient – since March last year the platform has overall facilitated collection of Shs4.5bn. Stanbic Bank CEO, Patrick Mweheire and Patrick Mukiibi, the acting commissioner general for URA said they trust the online solution. “Through this platform we are providing a gateway into URA’s payment systems; we are moving away from physical branches to using digital platforms to pay tax,” Mweheire said. URA’s Mukiibi said over 60% of the revenue collected via the platform relates to Kampala Capital City Authority licenses, National Identification and Registration Authority (NIRA) and passport fees while the rest covers direct taxes.
Weekly share price movement (Feb 02) Security BATU BOBU CENT DFCU EABL EBL JHL KA KCB NIC NMG NVL SBU UCHM UCL UMEME ALSI
Feb 02 30000 115 1,627 681 8,928 1,538 17,962 558 1,618 13 3,663. 510 29 122 29 400 --
Jan 24 30000 115 1,631 680 8,758 1,524 17,730 592 1,577 12 3,758 515 29 134 29 400 --
Movement 00 00 0.2 1.0 1.9 0.9 1.3 5.7 2.6 8.3 2.5 1.0 00 8.9 00 00 --
COMMENT
By Gerald Mbanda
African Renaissance at last Reports of African economies among fastest growing show long dream turning into reality
T
he concept of African Renaissance has been on the lips of progressive Africans for decades as a renewal of the way of doing things to overcome Africa’s challenges and advance the wellbeing of the African people. In 1946, Senegalese scholar Cheikh Anta Diop wrote extensively on African renaissance in his books; `Towards the African Renaissance’ and `The Cultural Unity of Black Africa’. Diop rightly believed that cultural unity of the African people was a strong weapon to defeat colonialism. On the other hand, colonialism succeeded by breaking the cultural identity and Unity of the colonised. Though colonialism was eventually defeated, the African continent remained divided; making it difficult to achieve a common agenda to collectively tackle challenges and build consensus on developmental strategies. The 30th Ordinary session of the African Union assembly held between Jan.22 and 28 in Addis Ababa was historical in many ways as a second liberation and the beginning of the long awaited African Renaissance. First, it was the first time in 54 years’ history of the continental body, that the African leaders made anti-corruption the subject of discussion and the theme of the summit. Corruption is one of the chronic cancers that affects Africa and has dangerously retarded its growth. During the summit, the Nigerian President Muhammadu Buhari presented a report to the AU on corruption in Africa, showing that the continent loses $148 billion annually in corruption which accounts for 25 percent of Africa’s average GDP! If Africa stopped corruption, this amount of money can build modern roads and railway networks which are lacking to facilitate intra trade and movement of people, and poverty levels would be reduced tremendously. Secondly, a Single African Air Transport Market (SAATM) was finally launched with 23 members states pledging their commitment to immediate implementation after almost three decades after it was proposed. Once implemented it is expected to bring down the cost of air tickets by 25 percent, boosting intra- African trade and tourism. A study by International Air Transport Association (IATA) carried in 2014, shows that by liberalising routes for only 12 key African countries, about $1.3billion will be added to
the continent’s GDP, while creating more than 150,000 jobs. The ease of visa rules embraced by African countries in recent years has also had an impact on promoting trade and tourism. The 2014, African Development Bank report on ease of visa rules mentions that when Rwanda adopted the visa-on-arrival policy, and cut the fee by half to $30, African visitors increased by 22 percent annually, while tourism income increased by 4 percent. Rwanda has further relaxed her visa regime by allowing travelers to receive visas upon arrival. Other African countries have to open up and maximise opportunities for regional integration and attract foreign investment and tourism. Rwandan President Paul Kagame has been entrusted by his peers with a double role; to lead the African Union as the chairman and also spearhead the continental body reforms. These tasks assigned to the Rwandan leader are a manifestation of the confidence and trust that he has the ability to make a difference in bringing together Africa towards realising an integrated, prosperous, and peaceful Africa and ultimately the realisation of Agenda 2063. Kagame is admired by many as a pragmatic and transformational leader who finds solution from within through homegrown initiatives and a strong advocate of a selfreliance rather than aid- dependent Africa. The current neo- colonial economic model for Africa’s dependency on export of raw
Corruption is one of the chronic cancers that affects Africa and has dangerously retarded its growth
materials continues to make the continent a source of raw materials for developed countries, a trend that has to be reversed. Tom Burgis, the author of an interesting book: ‘The looting Machines: Warlords, Oligarchs, corporates, smugglers, and the theft of Africa’s resources’, says that, “ Outsiders think of Africa as a great drain of philanthropy, a continent that guzzles aid to no avail and contributes little to the global economy in return”. Burgis, however, goes on to say that this is a big misconception because when you look closely at the resource industry and the relationship between Africa and the rest of the world; the picture is different. He further notes that, “In 2010, fuel and mineral exports from Africa were worth $333 billion; more than seven times the value of the aid that came to Africa”. Additionally, multinational corporations operating in Africa are reported to be syphoning about $203bilion annually in tax evasions and other illicit financial flows. Africa is therefore not poor, but her resources are stolen both domestically and internationally. In 2017, the African Development Bank reported Africa to be the world’s secondfastest growing economy and a number of international business observers have also named Africa as the future economic growth engine of the world. This counteracts the second scramble for Africa. But this time the AU must also be well organised to be in-charge; unlike the first colonial scramble that stole Africa’s resources with impunity and turned around to lecture African people about how poor they are! As the first liberation to attain independence required sacrifice, the second liberation too needs much more sacrifice and bold decisions to disrupt the sophisticated exploitation of Africa’s resources. The African youth must have hope in their continent as the next source of wealth and jobs. With the new resolve by African leaders to stay united than ever before, having a common developmental agenda, there is no doubt that the long awaited African renaissance is beginning to take shape. Gerald Mbanda is a Political commentator and a Pan-Africanist Twitter: @GeraldMbanda Feb 09 - 15, 2018
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COMMENT
By Morris Komakech
Uganda’s state of violence The killing of Mowzey Radio shows how excessive state violence has alienated Ugandans from good governance
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he extreme violence where President Yoweri Museveni and his NRM enthusiasts have taken Uganda’s politics will alienate many people from meaningful participation in society’s affairs. Already, Ugandans feel helpless – that their votes mean nothing, and their voices, at every level of decision-making, is muzzled by violent repression. Uganda is no longer for Ugandans and it is high time the mockery constituted in Article 1 of the overly adulterated 1995 Constitution, that power belongs to the people, got amended to state unequivocally that “power belongs to the State managers who own the guns”. Excessive state violence is alienating citizens from governance. The NRM mindset of violence is constituted horizontally and vertically. This serves to diminish legitimate interests in collective ownership of the State, and dehumanises agents outside the shades of the repressive state. The taming of the Police, militarising, and criminalising it, serves the symbolic purpose of also militarising the sociopolitical dimensions of society. This is how power is primarily courted in NRMO and applied to deform society. Ugandan society is now inverted deformed, instead of being transformed. Uganda is deformed from a peaceful, hopeful, and a united nation, into a criminal, immoral, unconscionable, and violent society. Public consensus is now by violence; from ridiculous marriage requirements to bar brawls, decisions are coercive and fatal at any slight resistance. People now contend with marrying worthless partners for a fortune under family duress. Everything is overpriced, inflated and that is, on its own, a form of violence on our conscience! We just lost a young talent, Mowzey Radio – a musician, whose death incidentally bound the nation together in awe of the degree of cruelty, violence, and the propensity to which all of us are culpable to this violence. When Mathew Kanyumunyu reportedly gunned down that youthful social worker, Keneth Akena, the nation was
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engulfed in a ball-fire of grief and rage. It seems violence at every level is inescapable in this society. Today, many violent attackers lurk on the street, waiting to strike again on the next victim. But, the attackers are protected by the state and persons who associate with the violent state. They are at liberty to defend the morally indefensible acts of blatant murder. The big question that remains unanswered to this date is how weapons have permeated civilian realms in an era of terrorism. Violence in Uganda cannot be divorced from the genesis and corpus of this regime - its formation, survival, and molding of society through decades and counting. Violence as an enterprise definitely is the modus operandi through which NRM has survived for decades.
Every Ugandan today is familiar with, or has been violated by sectarianism, whether in the private or public sector
The Foucaultian governmentality has come to full bearing – policies, constitutionalism, and delivery of social services are all designed on the basis of aggression - repression. State agency is associated with aggressive and violent acts. Many Ugandans subsisting outside the shade of the state are increasingly being physically deformed as a result of state abuse of power. They are dehydrated, malnourished, sicker, fearful, shorter, and smaller than those protected under the violence of the state. In comparison, those within the nexus of the violent state realms are bulkier, greedy, fierce, armed, egoistical, and crooked. For the most, social status is borne out of the violence of sectarianism. Ugandans now weigh their life circumstances with each other based on their tribes, not education or enterprises. There are those who work so hard but remain poor, and those that hardly labour but accumulate wealth quickly, or gain promotions faster than they deserve, just on accounts of their tribe. I think the incarcerated former DPC Muhammad Kirumira alluded to this unfortunate reality. However, the UPDF and government ministries offer the best case study of sectarianism under this Museveni regime. Every Ugandan today is familiar with, or has been violated by sectarianism, whether in the private or public sector. Sectarianism is a form of tribal violence wreaked on others by the groups that hold power. It is the reason some groups might hate others more than has ever been witnessed in this country when this regime falls. Morris Komakech is a Ugandan Social Critic and Political Analyst based in Toronto, Canada. Contact via
[email protected]
COMMENT
By Dani Rodrik
On economic populism and political populism
Why one is almost always harmful, but the other can sometimes be justified in exceptional times
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opulists in power have one thing in common: they regard limits on their power as undermining the will of the people. For many, this aversion to institutional constraints extends to the economy, which explains why populists are so often at odds with regulatory agencies, central banks, and global trade rules. But while populism in the political domain is almost always harmful, economic populism can sometimes be justified. Economists tend to have a soft spot for limiting politicians’ discretion, because policymaking that is too responsive to short-term domestic politics can hurt long-term outcomes. Politicians with the power to print money, for example, may generate “surprise inflation” to boost output and employment in the short run – say, before an election. The solution is an independent central bank, operating free from politics to maintain price stability. But controls on economic policy are not always beneficial. Restraints may be instituted by special interests or elites themselves. In such cases, delegation to autonomous agencies or signing on to global rules does not serve society, but only a narrow caste of insiders. Today’s populist backlash is rooted partly in the belief that economic policymaking has been hijacked by such interests. Multinational corporations and investors have shaped the international trade agenda, resulting in global regimes that benefit capital at the expense of labour. Banks and other financial institutions have been especially successful at instituting rules that give them free rein. And what benefited society in one era may not benefit it in another.
Independent central banks played a critical role in bringing inflation down in the 1980s and 1990s. But in the current low-inflation environment, their focus on price stability imparts a deflationary bias to economic policy, and is in tension with employment generation and growth. Such “liberal technocracy” may be at its apogee in the European Union, where economic rules and regulations are enacted without deliberation at the national level. This gap has given rise to populist, Euroskeptical political parties. In such instances, returning economic autonomy to elected governments may be the right move. Exceptional times require the freedom to experiment in economic policy. Political populism that stifles pluralism and undermines liberal democratic norms is a menace to be avoided. But economic populism is occasionally necessary. In some cases, it may even help forestall the arrival of its more dangerous cousin. Dani Rodrik, Professor of International Political Economy at Harvard University’s John F. Kennedy School of Government, is the author of `Straight Talk on Trade: Ideas for a Sane World Economy’. Copyright: Project Syndicate, 2018.
Overheard
Ramaphosa, Malema on Zuma’s exit In what appeared to be the first strongest indication on Jan.06 that President Jacob Zuma could soon to exit office, African National Congress (ANC) president Cyril Ramaphosa said the matter must be addressed but that Zuma must not be embarrassed. Ramaphosa made the remarks during an interview with eNCA on Sunday night. “We need to deal with this matter with the level of maturity it requires, with the proper decorum and I’ll say we should never do it in a way that’s going to humiliate President Zuma. We should never do it in a manner that’s going to also divide the nation.”
I didn’t do anything wrong to the country Ramaphosa conceded that people were eager to know if Zuma would stay on until the end of his term in 2019, or be asked to leave early. But Zuma was thinking different. “He refused to resign and he told them to take a decision to remove him if they so wish to do so because he didn’t do anything wrong to the country. He’s arguing that he complied with all legal instructions including paying back the money‚ what more do they want from him‚“ the EFF’s opposition leaders Julius Malema tweeted on Jan.05 before things heated up.
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The New Cobalt 60 Radiotherapy machine. Independent Jimmy Siya
New cancer machine
restores patients' hope
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By Flavia Nassaka gnes Atiang was in line for a breast operation at the Uganda Cancer Institute in Kampala when we spoke. Her story should have been one of double tragedy. Instead, it was one of hope. An X-ray at Mbale Regional Referral Hospital had revealed that the 31-year old had tumors in her right breast. Medically, her cancer is stage 2; meaning it is growing but is still contained in the breast or growth has only extended to the nearby lymph nodes. But that was half the story. The other was that this was the second time fate was bringing Atiang to the Uganda Cancer Institute – in two years. In 2015, she was at the institute; nursing an uncle who was battling cancer of the rectum. She recalls that instead of her uncle being treated, she was many times advised to take 30
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him back home to die because the treatment he required at the time was unavailable. “He needed radiotherapy. There was nothing,” she said in a brittle voice, “We chose to stay but they were telling us to go back home and die.” That December, her uncle collapsed in pain and died while she was away searching for painkillers from nearby private pharmacies. Then just three months after her uncle’s death, the Cancer Institute was plunged into a major public relations crisis as news spread that its only cobalt 60 radiotherapy machine – the only radiotherapy machine in the country – had broken down beyond repair. The country was in panic mode. Many other patients died. Some were referred abroad. The institute was seen by many as a death trap. But today, instead of dwelling on that grim past, Atiang is optimistic. “Our hope is down there,” she said,
pointing at an aging house fenced off with a wire mesh with a banner that reads, ’Restricted Area’ at the entrance.
Hope arrives
The old house is where a new radiotherapy machine acquired by the government for about 630,000 euros is housed. Though only physicians and patients are allowed beyond the entrance because exposure to radiation can be dangerous to humans, we gained special access. We were first ushered into the IT room where several computer screens and wires are fixed to operate and monitor whatever happens in the next room where the new cobalt machine is fixed. It is a huge blue and white colored machine in two parts. The main visible part is a huge wall--hang neck on whose head is a huge lighting assembly that beams down a tiny bed on a pneumatic base, the second part, on which a patient lies. The third part is hidden behind the
health wall. “We put a false wall not to scare patients,” says Dr. Daniel Kanyike, the Head of Radiotherapy. He explains that the machine has two cameras; one for monitoring the patient and the other the environment around the patient during treatment. There was no patient being treated, but Kanyike said the 7000kg machine that works 24/7 from Monday to Friday can handle 80 patients per day. Just like Atiang, Kanyike also sounded excited about the new machine, describing it fondly as “a machine that has everything modern and almost comparable to the linear accelerator, the most advanced radiotherapy machine in terms of treatment time”. “There are special laser beams to treat the patient precisely,” he said as he tilted it to various corners making the red lines of radiation markers to beam neatly on various parts of the neat white walls. “It can rotate everywhere. It will tell you when you enter something wrong or inconsistent with the patients details entered initially. It’s electronically controlled.” Dr. Ausi Kavuma, a senior physicist who has worked at the department for the last 23 years and has used the new machine says it quickens work. “With the old one we used 260 seconds to treat one grade but with this we use 46 seconds to treat the same.” Despite being ordered in 2013, the machine only arrived in the country in December and was commissioned on Jan.19 at an event attended by Prime Minister Ruhakana Rugunda and the Director General of International Atomic Energy Agency, Yukiya Amano. Dr. Jackson Orem, the Institute’s Executive Director tells The Independent that it could have arrived earlier considering the need but they had to go through a lot of certifications and checks for safety and effectiveness before the machine that cost the country about 630,000 euros could be ferried in. He said they also needed a lot of technical support from the agency even though they got a warranty from the manufacturer to train and build capacity of staff. “It’s new. It’s not like people have been saying it’s an old thing. It’s not about just the machine it’s about a system; including staff, facility and the safety features we have for utilisation”. For instance, he says, they had to build the walls to about 1.3meter thickness to ensure that the radiation emitted is absorbed within the walls. But initial efforts at finding a competent company in the country to design it were unsuccessful and the process of designing alone took them close to two years. They also had to do several tests to
ensure that likely radiation leakages are at almost zero and after that they would periodically send samples to the Vienna based Atomic Agency headquarters for intercomparison. “Now Ugandans don’t need to worry,” says Orem, referring to the March 2016 scenario when the only machine got in 1995 as a donation from the Atomic Agency broke down. He says once a new bunker currently under construction is complete, more similar machines will be procured so that the up to 75% of the over 200,000 patients who report to UCI requiring radiotherapy will have options and will no longer need to stay weeks or months waiting for a chance of treatment. When she spoke to journalists ahead of World Cancer Day celebrations on Feb.04, Health Minister Jane Ruth Aceng said construction of the modern bunkers with six chambers which will house a radiotherapy machine each was 90% complete.
Challenges and hope
However experts like Dr. Ian Clarke, the proprietor of the Private International Hospital Kampala, hold reservations about the said radiotherapy machines. In an earlier interview with the Independent, Clarke, for
prerogative in treating cancer, yet there are hospitals coming up which can also offer such treatment. He says the private facilities cannot easily invest in a Linear Accelerator, especially if one knows that patients will not be able to afford the treatment, while the rich people will still go out of the country. He says it would be best if the government allocates a subsidy, either to the setting up of the equipment or by subsidising the bills for the patients. Clarke says with advancements in technology, however, treatment has become more complex and very soon Uganda will require more than just a radiotherapy machine. Already elsewhere, techniques such as positron emission tomography and computed tomography (PET/CT) in one machine and Positron emission tomography–magnetic resonance imaging (PETMRI) scans are being used in treatment. He says these machines require a radioactive material with a short half-life which must be manufactured in the country or at the very least in the region, since the short half-life means that it will break down and be useless within six hours. The manufacture of this radioactive material requires a machine called a Cyclotron which has not yet been
Dr. Daniel Kanyike, the head of radiotherapy department showsoff the IT room. instance, said the new one is just a newer version of the old machine they had. He explains that the challenge with that type of machine is that it’s not as specific as the Linear Accelerator would be in terms of where the radiation goes. He advises that the government should consider procuring a Linear Accelerator estimated to cost at least $5million, approximately the price of six of the new machine. Clarke, a cancer survivor who is an advocate of health insurance says, to afford top-notch cancer care, public and private health providers need to cooperate. He says this has failed to happen because the public facilities such as the Uganda Cancer Institute feel that they have the major
independentJimmy Siya
installed in Uganda and the East African region. For now, however, patients at the Uganda Cancer Institute are happy that they can at least get treatment. When we spoke, Atiang had been undergoing chemotherapy, another form of treatment involving use of drugs to shrink the cancer tumor. But her doctor had already briefed her about what to expect after the surgery, including radiotherapy; a form of cancer treatment that involves hitting cancer cells with a beam of radiation to kill off cancerous cells. “After surgery the doctor said I might be here for more three to four weeks,” she said, “You know these days they put you on the list for the machine quickly.” Feb 09 - 15, 2018
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health
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By Niels Ebdrup
ircumcised men have more difficulties reaching orgasm, and their female partners experience more vaginal pains and an inferior sex life, a new study shows. If a man is circumcised, he faces an increased risk of experiencing delayed orgasm, and his female partner has an increased risk of not feeling sexually fulfilled. This is the clear-cut conclusion of a new Danish research article, which has received international attention. Some 5,000 sexually active men and women were surveyed about their experiences and possible problems with their sex lives. With a specific focus on circumcised men and their women, the results are startling. “Circumcised men are three times as likely to experience a frequent inability to reach an orgasm,” says one of the researchers, Associate Professor Morten Frisch from Danish research enterprise SSI.
Research into the effects on women is unique
This is one of only a few studies of the sexual consequences of male circumcision, and in one area in particular it is groundbreaking: “Previous studies into male circumcision have looked at the effects it has on the men. But scientists have never really studied the effects this has on the women’s sex lives,” says Frisch. “It appears that women with circumcised men are twice as likely to be sexually frustrated. They experience a threefold risk of frequent difficulties in achieving orgasm, and an eight-fold risk of feeling pain during intercourse – also known as dyspareunia.”
Circumcised men prefer it rough
There appears to be a very simple reason why circumcised men and their partners are having problems with their sex lives. The circumcised man develops a thin layer of hard skin on his penis head, which decreases the sensitivity. This means that in order to reach an orgasm, he needs to work harder at it, and that can lead to a painful experience for the woman. “We conducted a survey, but the data does not explain why these problems occur. There are, however, some good suggestions in the scientific literature,” he explains. When the penis enters the vagina, the foreskin is pulled back. And on its way out again, the foreskin goes back to cover the penis head. This way the foreskin stimulates both the man and the woman. The gliding in-and-out movement of the foreskin, combined with the in-and-out movement inside the vagina, constitutes 32
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Male circumcision Could it lead to a bad sex life?
what is known as ‘the gliding movement’. “When a circumcised man moves in and out of a woman without ‘the gliding movement’ caused by the foreskin, it can have a painful effect on the woman’s mucous membrane. This could explain the pain and the tendency towards dryness that some women with circumcised men experience.”
Sources of error were filtered out
A vast majority of the circumcised men in the study were circumcised based on a doctor’s estimate. “Only five percent of all Danish men are circumcised, yet we have statistically valid evidence that male circumcision can be associated with sexual problems. The study did not involve many religiously circumcised men – Jews and Muslims, for example. But even with these factors taken into account, the data pointed in the same direction. The statistical analyses also took a long list of additional relevant factors into account, including: Age Cultural background Religious background Marital status Levels of education Household income Age at first intercourse Number of sex partners Frequency of sexual activity with one partner in the past year “We adjusted for all these factors in an attempt to ensure that circumcision is the actual cause, and that the link isn’t attributable to other factors.”
Bottom-line results were clear
Frisch mentions an example of how things get muddled up if researchers do not adjust for possible sources of error when they work with statistics:
“If, for instance, you look at people who drink lots of beer, you’ll see that they face an increased risk of developing lung cancer, compared to those who don’t drink much,” he says. “But it’s not the drinking itself that causes the lung cancer. There just happens to be a correlation between drinking and smoking, and it is actually the smoking that causes the lung cancer.” These kinds of error sources were taken into account, and the bottom-line results were clear: “We’re seeing a consistent picture. Even though most circumcised men – and their women – do not have problems with their sex lives, there is a significantly larger group of circumcised men and their female partners who experience frequent problems in achieving orgasm, compared to couples where the man is not circumcised.” In addition, there are significantly more women with circumcised men, who experience vaginal pains during intercourse or feel that their sexual needs are not met.
Further studies needed
Frisch hopes this new study will be replicated by researchers in other countries and cultures. “That way we can ascertain whether this phenomenon applies to Danes only or whether it extends into other cultures too,” he says. “All in all, I have a humble approach to our findings, so I would also like to see whether other Danish studies would reach the same conclusions.”
Study resonates internationally
According to Frisch, the study has received a great deal of international attention. For example, he has been contacted by politicians in California, who are very pleased with the results of the study because they want to ban circumcision in their federal state. Others are less excited, saying the research is controversial. “This is a highly sensitive issue, and some people oppose the publication of this kind of research. Some people have actually tried to stop the publication of our article,” he explains.
A question of ethics
Certain groups and individuals are lobbying in favour circumcising all men, explains Frisch. Not necessarily out of religious concern, but because they believe that circumcision has a health-promotional effect. In Africa, for instance, there are indications that circumcision could reduce the risk of HIV infection. Source: NordicScience
ART | BOOKS | SOCIETY | TRAVEL | CULTURE
Cultural integration through art East African biennale Kampala focuses on commonality
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By Dominic Muwanguzi rt has a universal language. That is why five East African countries can showcase as part of the East Africa Art Biennale currently running at AKA Gallery in Kamwokya,
Kampala. The artworks, by different artists, from different countries and in different media and technique, communicate a common language of cultural integration. Incidentally, cultural integration is the inspiration of this itinerary exhibit that started moving from Dar-es-Salaam, Arusha, Nairobi and is now in Kampala. Regardless of the touring schedule, artists have produced art that symbolises that East Africans share a common culture and aspirations. As such, the drawings of Ugandan artists participating in the festival like Ibra Muwanga, explore the same themes like their counterparts from Rwanda, Kenya and Tanzania. Muwanga’s artistic narrative concentrates majorly on the subject of children in deprived communities that are loosely known as slums. The drawings of children going about their routine activities more
often with smiles lighting their faces; figuratively connotes their innocence and the artist’s advocacy for their rights. Similarly, Tanzania artist, Stephen Mchomvu drawings of children in squalid situations is a metaphor to the struggles of the rural poor. Notwithstanding, the heartrending drawings of children with a common trait of bright-wide stare, the images provide optimism for both the subject in the painting and the audience. Technically, Ronex Ahimbisimbwe’s technical innovation with adoption of different styles and techniques in his paintings that include collage, printmaking and sculptural elements like form and depth, resonate with Victor Binge, a Kenyan artist, who is eager to experiment with diverse media. Ronex’s intent to query the status quo with art, but with more emphasis on the power of the subconscious, captivates the attention of his audience. On the other hand, Binge’s exploration between the known and unknown culminate into his making art that is both intuitive and sublime. His colours on canvas are dazzling; invoking an analogy of art that is crawling with life. However, such similarities should not be taken for granted. The artists’ assertiveness and urgency to communicate a particular
message is central here. In this regard, the audience keenly observes the adventurous characteristic of artists in the exhibit; showcasing art on diverse themes like wildlife, waterscapes, personal- identity (LGBTQ) and rural lifestyle. These topics are crucial to the cultural practices of the African in the region. It is through such drawings that these topics can be honestly and objectively be addressed. The EASTAFAB is an important podium to promote cultural integration because it focuses on the ordinary citizenry who is not necessarily interested in politics or academics. In light of such approach, it is easy to bring communities of the East African region together. Nonetheless, to some critics who many counter that such a project may be futile, it is important to acknowledge the genesis of art as rock art that has been traced in African ancestry over forty thousand years ago. This fact is enough to legitimise such initiative of cultural appreciation and integration through art. AKA gallery is located on Bukoto Street next to the Alliance Francaise Kampala and Goethe Zentrum Kampala offices. The East Africa Art Biennale exhibition moves to Rwanda and Bujumbura after Kampala. Feb 09 - 15, 2018
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obituary
Remembering Hugh Masekela The horn player with a shrewd ear for music of the day By Gwen Ansel
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rumpeter, flugelhorn-player, singer, composer and activist Hugh Ramapolo Masekela has passed away after a long battle with prostate cancer. When he cancelled his appearance last year at the Johannesburg Joy of Jazz Festival, taking time out to deal with his serious health issues, fans were forced to return to his recorded opus for reminders of his unique work. Listening through that half-century of disks, the nature and scope of the trumpeter’s achievement becomes clear.
Masekela had two early horn heroes. The first was part-mythical: the life of jazz great Bix Biederbecke filtered through Kirk Douglas’s acting and Harry James’s trumpet, in the 1950 34
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movie “Young Man With A Horn”. Masekela saw the film as a schoolboy at the Harlem Bioscope in Johannesburg’s Sophiatown. The erstwhile chorister resolved “then and there to become a trumpet player”. The second horn hero, unsurprisingly, was Miles Davis. And while Masekela’s accessible, storytelling style and lyrical instrumental tone are very different, he shared one important characteristic with the American: his life and music were marked by constant reinvention. As Davis reportedly said: “I don’t want to be yesterday’s guy”. Much has already been written about Masekela’s life and its landmarks: playing in the Huddleston Jazz Band in the 1950s on a horn donated by Louis Armstrong; performing in the musical
“King Kong” in the 1960s and at the Guildhall and then Manhattan schools of music with singer Miriam Makeba; U.S. pop successes in the 1970s and then touring Paul Simon’s “Graceland” in the 80s and 90s. What is less discussed is the music, and the innovative imagination he has periodically applied to draw it fresh from the flames.
Breaking new ground
The Huddleston band, plus time as sideman and in stage shows, were the traditional career path for a young musician. But then Masekela broke his first new ground. With fellow originals, including saxophonist Kippie Moeketsi, pianist Abdullah Ibrahim and trombonist Jonas Gwangwa, as The Jazz Epistles
obituary they cut the first LP of modern African jazz in South Africa. “Jazz Epistle: Verse One” (1960) featured band compositions marked by challenging improvisation – “a cross between mbaqanga and bebop”. Mbaqanga is form of South African township jive and bebop an American jazz style developed in the 1940s. Masekela had also joined the pit band and worked as a copyist for South Africa’s first black musical, “King Kong”. This exposure attracted attention to his talent from potential patrons at home and abroad. Pushed by the horrors of the Sharpeville massacre when the South African police shot and killed 69 people on 21 March 1960, and pulled by donated air-tickets and scholarships, Masekela left for London, and then New York. In the next two decades, Masekela’s re-visioning of his music took many forms. He found America hard, but with wife Miriam Makeba (the marriage lasted from 1964 - 1966), the production skills of Gwangwa, and the support of American singer Harry Belafonte he proactively introduced audiences to South African music and the destruction of apartheid. On the ironically titled 1966 live “Americanisation of Ooga Booga”, he demonstrated the creative possibilities of “township bop”. Masekela did this by mashing up repertoire and playing styles from the South Africa he had left and the America he had landed in. But he was also looking in other directions: in collaborations with other African musicians; towards fusion (with The Crusaders), rock (with The Byrds) and even pop at the Monterey Pop, festival. That list captures only a fraction of his projects in the 1960s. Some bore instant fruit: his 1968 single, “Grazin’ In the Grass”, topped the Billboard Hot 100 list and sold four million copies; the previous year’s “Up Up and Away” became an instant standard. In 1971, he teamed up with Gwangwa and Caiphus Semenya for another panAfrican vision: The Union of South Africa. In 1972 he explored a stronger jazz orientation on “Home is Where The Music Is” with, among others, sax player Dudu Pukwana, bassist Eddie Gomez, keyboardist Larry Willis and Semenya.
Sixties counterculture
But as the title of “Grazin’ In the Grass” suggests, Masekela was also bewitched by other aspects of Sixties counterculture. He dated his addiction back to the alcohol-focused social climate
of his early playing years in South Africa, but by the early Seventies he admitted: “I had destroyed my life with drugs and alcohol and could not get a gig or a band together. No recording company was interested in me…” That depression inspired the song that achieved genuinely iconic status back home in South Africa: the 1974 reflection on migrant labour, “Stimela/Coal Train”. Foreign critics have handed that status to other Masekela songs, such as “Soweto Blues”, “Gold” or the much later “Bring Him Back Home”. Yet powerful though those are, it is Stimela, with its slow-burning steam-piston rhythm that captured the hearts of South Africans in struggle back home, and still does today. And of course the
That depression inspired the song that achieved genuinely iconic status back home in South Africa: the 1974 reflection on migrant labour, “Stimela/Coal Train” lyrics: ”There’s a train that comes from Namibia and Malawi /there’s a train that comes from Zambia and Zimbabwe/ from Angola and Mozambique… Masekela said: ”For me songs come like a tidal wave … At this low point, for some reason, the tidal wave that whooshed in on me came all the way from the other side of the Atlantic: from Africa; from home”. Shortly afterwards, Masekela headed
off to Ghana, hooked up with Hedzoleh Soundz, and was soon back in the charts. “Stimela” received its first outing on the album “I Am Not Afraid”, with West African and American co-players including pianist Joe Sample. By the mid ‘80s, the hornman was back in southern Africa, recording “Technobush” at the mobile Shifty Studio in Botswana, and performing for the Medu Arts Ensemble with a Botswanan/South African band, Kalahari. His music shifted again: roots mbaqanga came strongly to the fore to speak simply and directly to people now openly battling the apartheid regime just across the border.
Returning home
After liberation and his return home, Masekela once more chose fresh directions. In 1997 he banished his addictions and began to showcase the virtuoso player he could have been 30 years earlier without the distractions of the West Coast. He fronted big European jazz bands, and benchmarked a long musical friendship with Larry Willis with the magisterial Friends. But his shrewd ear for the music of today, rather than yesterday, also took him into younger company. He collaborated with current stars – including singer Thandiswa Mazwai – often encouraging them to take centre stage. Just before the recurrence of his cancer, he was planning a festival collaboration with rapper Riky Rick. To cap the transformation, the individualistic rebel of the 60s and 70s became an elder statesman of social activism. In 2001, he established a foundation to help other musicians escape addiction. Once more he foregrounded the music of continental Africa, to campaign against xenophobia. And the return of his own illness became the cue to exhort other men to get checked for prostate cancer. Other South African musicians have succeeded overseas; many have made one mid-career image switch – but few have shown us, in only one person but more than 30 albums, so many of the faces and possibilities of South African jazz. Hugh Masekela, musician, activist. Born: 4 April 1939; Died: 23 January 2018 Gwen Ansell, Associate of the Gordon Institute for Business Science, University of Pretoria Source: The conversation
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obituary
Mowzey Radio off air (January 25, 1985 – February 1, 2018) By Ian Katusiime
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hat happens when an artiste dies is a question often asked when a creative dies. Unlike many people, artistes are expected to have obvious legacies because works of art never die. This can be said of Radio, singer and songwriter who passed on at 33. He was hailed for his unique vocal abilities and lyrical finesse that produced some of the most popular ballads in Uganda. But Radio’s talent was not just felt in Uganda, music lovers across the continent and beyond mourned a star whom they described as an icon. Born Moses Nakintije Ssekibogo but known to a legion of fans as Mowzey Radio, the voice of the tall, thin and jolly musician blasted radio airwaves and rocked hangout spots for a decade as one half of the Goodlyfe Crew with his partner Weasel, real names Douglas Mayanja. Through songs like Nakudata, Bread and Butter, Magnetic, Ability, Nyambura, Talk and Talk, Radio broke the orthodoxy of the Top Three artistes in Ugandan music; Jose Chameleone, Bebe Cool and Bobi Wine and clearly established himself as a force to be reckoned with. His lyrics usually revolved around themes of beauty, an unreciprocated love or a love that he never gives up chasing. And the latter part is something that defined Radio’s career. There are times when the Goodlyfe Crew would release hit after hit, nearly every month and people wondered whether they would not suffer quick burn out musically. But they did not. Instead they wowed their fans with more hits.
Early life
Radio was born on January 25, 1985 and went to Kibuye Primary School among many others before he joined
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secondary school. He attended Lake View Wanyange and Kiira College Butiiki for his O and A-level studies and opted to study psychology at Makerere University after an inspirational talk in his last year at secondary school. Like many musicians, Radio started singing at a tender age. “My mother used to ask me to learn Luganda songs and she would also ask me to sing for visitors at home,” he said in an interview with Sanyu FM radio. As a child, he sang Fred Sebatta’s songs and his love for singing just blossomed further.
obituary
Growing up, Radio’s journey followed a familiar pattern for most artistes- he was active in the school choir and wrote songs for it as well. It helped him hone his talent at song writing. Radio first garnered attention as an artiste after he released Sweet Lady in 2006; a ballad about pursuing a love interest. It is on this single that his unique voice got a chance to be heard at some events around the country. However his first song was Jennifer, released in 2005. Jose Chameleone, already an established artiste then, recorded the song at his Leone Island studios and Radio’s meeting with Chameleone opened many doors for the aspiring musician. Radio met Chameleone through another artiste, Chagga. At the time, Radio was juggling his young music career with his university studies while also working as a barber in Ndeeba, in the outskirts of Kampala.
Goodlyfe Crew
During his time at Leone Island crew, Radio worked as a back-up singer for Chameleone as well as a driver. It is here that he met Weasel and the famous duo ‘Radio and Weasel’ was born. Weasel, a younger brother to Chameleone, worked as a backup singer too. One day as the two milled around bored, they hit the studio and recorded Nakudata their first song as a duo. The song was an instant hit, bringing them overnight stardom. Shortly after, fans were singing along to Zuena, Ability, Potential and many more and the two started trading as the Goodlyfe Crew. Their musical success pitted them against their mentor Chameleone, and they renounced their membership with Leone Island. Fights both musical and physical became a staple of the two singers’ lifestyles and also fuelled their creativity. In their break out year in 2008, Nakudata won them Song of the Year at the defunct Pearl of Africa Music Awards. They also collected Best New artiste/group and Best Afrobeat single for ‘Zuena’ at the event. The dynamic duo, as they referred to themselves, did not survive the folly of fame. Fans would be astounded by their rivalry with Chameleone since the latter was Weasel’s brother. The group’s fights
with Bebe Cool were more acrimonious; they traded insults, fought in bars, and often sucked in relatives. In December 2013, the duo faced off with Bebe Cool in a concert dubbed Battle of the Champions at Kyadondo Rugby Grounds. Their quest for domination seemed to cement their position further as Uganda’s finest music duo. Although they had long made up with Chameleone and Bebe Cool, the group was at loggerheads with their former manager Jeff Kiwanuka. Radio and Weasel were plagued by unending rumours of a split. No sooner would a rumour be doing the rounds than another chart topping hit was churned from their Makindyebased studios. As is wont with musical crews, there would be fights over song releases, performance fees, booking negotiations but the duo’s creativity invariably put the rumours to rest. In 2013, the duo registered a milestone when they earned a
During his time at Leone Island, Radio worked as a back-up singer for Chameleone as well as a driver. It is here that he met Weasel and the famous duo ‘Radio and Weasel’ was born
nomination in the Black Entertainment Television (BET) Awards for Best International Act Africa. Last year in November, Goodlyfe crew staged a concert marking their ten years in the music industry where they took their fans on a memory lane of their unforgettable hits. However Radio seemed to shine more than his counterpart. Fans were often awed by his sharp silky voice that always belted out the chorus on Goodlyfe hits. He also distinguished himself as a song writer, penning hits for many of his colleagues. Many saw him as the lifeblood of Goodlyfe but Radio was always at hand to acknowledge Weasel as a vital partner. Benon Mugumya, the founder of Swangz Avenue, a music production house, says Radio was peerless. “We have not just lost Radio but music. There is no one like him. There is no one who crafted lyrics like him; the passion and feeling he had, it is such a loss.” Mugumya says he worked with Radio on Dagala, one of Radio’s very first songs. “He played a big role in the establishment of Swangz Avenue,” he told The Independent. Singer after singer eulogized Radio for his artistry. Bobi Wine wrote: “Radio was an icon. He was a bright shining star. He held Uganda’s flag high on the national and global scene. He defied the odds and proved that one can rise from the ghetto and become an international celebrity.” Jose Chameleone said he was Radio’s number one fan because of his obvious talent. “He came to me and sung to me first. We fell out, fought and reconciled.” Radio died on February 1 from severe head injuries. He had spent more than a week at Case Hospital after a pub brawl in Entebbe. The musician turned 33 on his deathbed and is survived by three children; two from fellow artiste Lillian Mbabazi. His last song, Tambule Nange released a few weeks before he was hit, sounded like a valedictory to his multitude of fans. In the song, Radio was asking God to take charge of his life and as fate would have it, Mowzey Radio was gone.
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Woman 38, pays billions to marry young man
A newly married Chinese couple has been making waves on the internet for their unorthodox matchshe is a wealthy 38-year-old mother of one, and he is a 23-year-old whose mother is only a year older than his
bride. The woman apparently fell pregnant after a romance with the younger man, after which he proposed marriage. Initially, the groom’s parents opposed the wedding,
citing the 15 year age difference between them, as well as the bride’s 14-yearold child from a previous marriage. However, the bride – a wealthy real estate businesswoman – offered them a dowry of 660,000 yuan (Approx.Shs380 million) in cash, a real estate plot, and a Ferrari sports car, altogether worth an estimated a 5,000,000 yuan (Approx. Shs2.9 billion). The parents gave their blessing immediately following the generous offer.
Trump apology to Africans? African leaders who met recently at the African Union summit in the Ethiopian capital, Addis Ababa were initially set to demand an apology from U.S. President Donald Trump over his alleged reference to their nations as “shithole countries”. Trump denies
making the comment. At the summit, ministers even drafted a resolution calling on Trump to “publicly apologise to all Africans”. But a Jan. 25 letter sent by Trump prompted a change of tack at presidential level. “I want to underscore
Nissan creates self-driving bathroom slippers Japan has long been known for both its strong traditions and being on the cutting edge of technology. So it is not surprising that Nissan Motor Co. has partnered with a traditional inn, called ‘ProPilot Park Ryokan to create high-tech, self-driving slippers. The slippers park themselves at the entrance of the traditional inn waiting for guests to use them upon arrival. When guests have finished using them, the slippers will drive themselves back to their original position. Each slipper features two tiny wheels, a motor, and sensors to drive it across the lobby’s wooden floor using a simplified form of Nissan’s ProPilot Park technology.
that the United States deeply respects the people of Africa and my commitment to strong and respectful relationships with African states as sovereign states is firm,” Trump said. Secretary of State Rex Tillerson would “travel to Africa for an extended visit,” he said.
Smart toilet cancels embarrassing noises
Don’t wear expensive stuff in Rotterdam – unless you can prove you bought it! `Fashion Police’ in the Dutch city of Rotterdam is rolling out a new and highly controversial pilot program aimed at reducing crime. The program will target young men wearing designer clothing or expensive jewelry who supposedly look like they’re too poor to afford the 38
items in question. If they’re unable to adequately prove to the police how they were able to purchase their clothes and/ or accessories, the items will potentially be confiscated on the spot, with suspects expected to strip down in the street.
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Japan is known as the most polite nation on Earth, and that extreme politeness extends to all aspects of life, including bathroom etiquette. Many public toilets feature a wall-mounted device that, when pressed, creates a sound that masks that of urination. However, Japanese homeware brand Lixil has partnered with instrument maker Roland to address the sensitive issue of bathroom noises. They’ve created a new device
called the “Sound Decorator”, which, unlike current solutions that only try to mask noises by emitting another sound, generates a pattern that makes the original sound less audi-
ble altogether. There is no word yet on whether the technology will expand to include the infinitely more embarrassing noises produced by gas and defecation.
Top Peugeot designer dies
Gérard Welter modeled cars like the Peugeot 604, 304, and 406 By Motoring Guru
I
f you are a Ugandan of a certain age, your heart certainly misses a beat whenever you encounter a Peugeot. The Peugeot was the hottest car on Ugandan roads from the 1960s, 1970, to the 1980s. And the sight of the Peugeot badge – the silver lion on a blue background, makes the heart race even on current models like Peugeot 3008 or even the Peugeot 207. It is a pity the Peugeot global sales website does not even cover Uganda. At least the Kenya National Police uses some Peugeots -4008 models. So, when one of Peugeot’s most renowned designers, Gérard Welter, died this Jan.31 of natural causes at the age of 75, it is probable nobody thought of informing Ugandans. But now you know. Welter designed one of the most posh limousines on Ugandan roads in the late 1970s; the Peugeot 604. At the time, there was the ubiquitous Peugeot 404 estate (station wagon) for taxi and saloon for family. Then there was the Peugeot 504 (also estate and saloon) for the official use (Idi Amin’s security agents loved to put their victims in its boot). Finally, after 1975, the posh 604 arrived. It was really a longer version of the 504 saloon and fooled no one in spite of new turbo-diesel 2.3 litre engine which promised a faster pace but rarely delivered. Peugeot were hot cars – winning the East
African Safari rally many times, including 404 (1961, 63, and 65 to 68). They competed against top brands of the period including, Volkswagen Beetle, Ford Zephyr, and Mercedes Bezi 219 and 220. Anyway, Welter – over 47 years, designed cars like the 304, 305, the 405 and the 406. He passed away after penning some of the most legendary Peugeots of the last half a century. His last production Peugeot design was the RCZ coupe, with its complex doublebubble glass roof.
He is most famous, though, as the designer of the iconic 205 hatchback. The 205 exploded onto the motoring scene in 1983 and Peugeot built 5.3 million of them in seven countries over a 14-year production run. It gave birth to the 205 GTi, which was the first hot hatch to best the Volkswagen Golf GTi in performance, if not sales. He didn’t isolate himself with conventional projects, though, and he teamed up with fellow Peugeot designer Michel Meunier to create the WM-Peugeot sports racing car. Its top speed of 405km/h on the Les Hunaudières section of the Le Sarthe circuit in 1988 remains the speed record ever recorded at Le Mans. While Roger Dorchy’s lap in the WM P88 is widely remembered (the car was parked almost immediately after recording the record speed), Welter’s racers competed at Le Mans every year from 1976 until 1989, with part support from his employers. He also designed the most successful rally car of the Group B era, the Peugeot 205 T16, the Paris Dakar-winning 205 and 405 Coupe and the 405 Coupe that rose to fame in the Climb Dance short film that covered Ari Vatanen’s Pikes Peak victory in 1988. Source: Additional reporting from the internet.
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Global comment
By Larry Hatheway
What I learned at Davos It’s no surprise that as the Davos consensus has ebbed, a wave of populist nativism has rushed in
T
he World Economic Forum’s annual flagship meeting in Davos has always been an easy target for caricature, even ridicule. Over the years, it has gained a somewhat deserved reputation for gathering a bunch of global elites in a posh Swiss resort for a week’s worth of self-congratulatory speeches – a sort of affirmation that the elite’s values and successes epitomise the triumph of democracy and capitalism. That is not to say that dissent has not been tolerated; but, more often than not, it was mere quibbling at the margins, never a genuine reflection on what might be flawed or missing. Until the financial crisis of 2008, Davos never wavered in its cheerleading for democracy, markets, and globalisation. Today, Davos man (and it remains mostly men) isn’t so supremely confident. The challenges he faces are on many fronts, and they aren’t all called Trump. For years, Davos was a reflection of the world that Francis Fukuyama proclaimed had reached the “end of history,” a community of nation-states drawn ever closer by trade and liberal-democratic values. That might have been true about the history that was made in 1989 and immediately afterwards. Communism lost. But capitalism’s (or democracy’s) victory began to look less complete against the backdrop of ethnic and religious strife – and soon sectarian terrorism – that filled some of the vacuum left by the demise of the Soviet Union. Davos was also about faith in rational economic behavior. That belief, too, seems quaint in the aftermath of the credit bubble that fueled the global financial crisis, which exposed economic models based on rational decision-making to stinging intellectual attack from the behavioral economists. Finally, Davos was about a belief that globalisation, abetted by information technology, would not be just an engine of growth, but also a leveler of cultural and historic divisions. Clearly, that, too, has not worked out the way Davos man had thought. It should come as no surprise that as the Davos consensus has ebbed, a wave of populist nativism – often suffused with 40
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racism, religious or ethnic intolerance, misogyny, and gender bias – has rushed in. Davos man is not ready to succumb. Too much is at stake for surrender. But one thing I didn’t hear at Davos this year was an ability to articulate the globalist answer to nativism. It isn’t enough to disparage the other’s values. Negativity may win the battle, but it’s unlikely to win the war, much less secure long-term peace and prosperity. Davos man is beginning to learn a muchneeded lesson in humility, requiring him to ask which of his beliefs are foundational, and which need revision. My sense is that the answer will reaffirm that democracy, a market economy, and globalisation are the foundations of human progress. So, too, are acceptance of diversity, logic, and science. Those always were Davos man’s core tenets. But his successor – perhaps we should say Davos woman – understands that they are both necessary and insufficient. Equality of opportunity – who knows, perhaps even a fairer distribution of income – is what the formerly smug, self-assured Davos man left out of the
Davos was also about faith in rational economic behavior
equation. If the nativists today stand for anything, it is that Davos 1.0 didn’t work for them. But it is important not to lose sight of what Davos should reaffirm. I heard the passion and determination of a young man, barely out of his teens, who spoke about his efforts to devise a simple technology that in several decades may rid the oceans of 90% of the plastic waste that now floats in masses half the size of continents. I listened to a professor of materials science describe how teams of researchers are using nanotechnology to address myriad challenges. One team has developed degradable packaging to replace plastics. Another is advancing drug therapies tailored to the needs of individual patients. And yet another team is collaborating with biotechnology experts to find ways to regenerate human tissue, giving hope to those paralyzed by spinal cord injuries that they may one day walk again. Those stories of creativity and the power of science belong to the best of Davos. The young man working to clean the world’s oceans is the son of immigrants. The materials scientist is a woman. Both work freely across borders and disciplines. Their ingenuity is supported by the public and private sectors, and though their accomplishments may one day be handsomely rewarded, their motivations are more a mix of intellectual curiosity and altruism. Davos man must change. But that cannot mean rejecting the core commitment to the view that human ingenuity, fostered by open societies and rewarded by markets, remains the sturdiest foundation for the advancement of humankind. Rather, it means ensuring inclusion, so that no one is denied the opportunity to participate in the betterment of their lives and their communities. Larry Hatheway is Head of Investment Solutions and Group Chief Economist at GAM. Copyright: Project Syndicate, 2018. www.project-syndicate.org
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