News analysis
Health
Business
LC elecons held nally
Is it me to rethink chronic pain treatment in Uganda?
Why shilling may not recover soon
Issue No. 529 July 13 - 19, 2018
Good year for banks
Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Musev Muse veni’s secret
les on Kayihura
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Issue No. 529 July 13 - 19, 2018 2 018 News analysis
Business
Health
Arts
Motoring
Cover story
Museveni’s Musev eni’s secret
les on Kayihura The Week
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Riek Machar to rejoin presidency in South Sudan
Kenya’s perfect storm: Development priorities are hard to reconcile with the realities of the rainy season potholes
The Last Word
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The poverty of Ugandan elites: Bursting the bubble of our `intellectuals’ by exposing their most cherished ideals as a bunch of delusions 16
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Analysis
35 Business
Why shilling may not recover soon: Cost of doing business likely to go up in line with the weakening local currency STRATEGY & EDITORIAL DIRECTOR: Andre Andrew w M. Mwenda Mwenda MANAGING EDITOR: EDITOR: Joseph Were INVESTIGATIONS EDITOR: Haggai EDITOR: Haggai Matsiko BUSINESS EDITOR: Isaac Khisa PHOTOGRAPHER: Jimmy Siya
Health Is it time to rethink chronic pain treatment in Uganda?: Experts warn of growing danger as patients buy strong drugs such as Tramadol over the counter and use them for mild pains
LC elections fnally: Will they bring leadership or be another layer of politicians at village level?
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Arts & Culture Behind `Coat of many colours’: Veteran artists ghts to preserve cultural heritages
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July 13 - 19, 2018
OFFLINE
President Yoweri Museveni, handing over a medal of great service to Maj. Gen. Kasirye Ggwanga, during the retirement ceremony of the UPDF officers at State House Entebbe on July 5.
The Ikumbania of Bugwere, His Royal Highness, John Wayabire arriving for his 4th coronation anniversary celebrations celebr ations at Saza Saz a Ground, Budaka district on July 7. INDEPENDENT/JIMMY
“But if you say you are going to tax rich farmers, if you own 200 cows and you produce 2000 litres of milk, let us get VAT out of that. That is not bad.” Julius Mukunda of Civil Society Budget Advocacy Group on unfair tax regime in Uganda
SIYA
UPDF officers Lt. Tom Tom Maiga, (2L) receives a certificate of language proficiency from the French Ambassador to Uganda, Stéphanie Rivoal, (L) during the ceremony on July 6 at the French ambassadors’ Residence. Looking is the Embassy’s Defence Attaché Lt. Col. Col. Fabien Miclot (2R).
500
Girls deled in Kampala in the last 5 months- police report
“This nation can easily turn into another Somalia or experience a Rwanda scenario if we are not careful. We need to have focused leaders at the LC 1 level to strengthen the country’ country ’s security.” security.” NRM Vice chairperson Moses Kigongo
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Village that will miss Local Council elections because they are not in the EC data system
“US investors are shunning Uganda due a number of obstacles including corruption. So when they come into a country looking for opportunities and run into obstacles, they will go elsewhere.” US Ambassador Deborah Malac
Shs900m July 13 - 19, 2018
Money NRM gave to its LC 1 candidates for the elections 3
WEEK
Man sentenced to two years in jail over sexually harassing MP
Presidents Museveni, Omar el Bashir of Sudan and Salva Kiir of South Sudan in a meeting at State House, Entebbe regarding the peace process in South Sudan. The leader of Sudanese People’s Liberation Movement in Opposition, Riak Machar, Machar, also a ttended the t he talks.
Riek Machar to rejoin presidency in South Sudan The latest power sharing agreement between South Sudan leaders will see Riek Machar become 1st Vice president in an arrangement where President Salva Kiir will have four vice presidents in total. From high level talks held at State House Nakasero, Kampala on July 7, i t was agre ed tha thatt bes ide idess the t he two curr current ent vice presidents, the fourth
will be a woman from the Opposition. The meeting at State House Nakasero lasted nine hours and was attended by President Yoweri Museveni, Sudanese President Omar el-Bashir, Kiir, Machar and their respective delegations. The final deal has not yet been signed but optimism high that it will happen. More negotiations are going on to sort out
the issue of states and boun dari es in S out outh h Sudan S udan and there is optimism a final deal will be signed for the power sharing agreement. The parliament will also be expanded from 400 to integrate another 150 members from the opposition. The meeting in Kampala was a follow up of two others held in Addis Ababa and Khartoum.
Brian Isiko, 25, was sentenced to two years in jail for sexually harassing Kabarole Woman MP Sylvia Rwabwoogo. Buganda Road Chief magistrate’s Court sentenced Isiko after he pleaded guilty to two counts of cyber harassment and oensive communication. Isiko, a student at YMCA in Kampala had been sending incessant text messages and repeatedly calling Rwabwoogo expressing love. As she narrated her ordeal in court, Rwabwoogo wept saying she feared for her life. In a radio interview, the MP said Isiko tormented her for eight months; describing how she often cancelled meetings, changed cars to avoid detection by Isiko. Isiko was charged and convicted for violating Article 24 Section 1 and Article 25 of the Computer Misuse Act. Trial magistrate Gladys Kamasanyu said society has groomed men to demean and disrespect women, the reason Isiko continued to bother Rwabwoogo even after blocking his calls.
Lawyer challenges Kabaka on Land Bill Sam Mayanja, a senior partner at Kampala Associated Advocates, has argued that is unconstitutional for the Kabaka of Buganda Kingdom, Edward Muwenda Mutebi II, to comment on the Land Bill which is before parliament. “It was unfortunate that the cultural leader of Buganda publicly com-
mented on the proposed land Bill; so did his agents like the Katikkiro. Once a Bill is in parliament, by virtue of Articles 1(4), 59, 77 and 79 of the Constitution, the traditional ruler has no say whatsoever. He added “The institution of Cultural or Traditional Leaders Act 2011, operationalising Article
246 of the Constitution, prohibits a cultural leader from being partisan.” Mayanja made the assertion in a 14-page addendum to his earlier submission to the Commission of Inquiry over the anomalies involved in land administration and management
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July 13 - 19, 2018
WEEK
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Court orders UTL to pay ex-staff pension The Court of Appeal has upheld a ruling by the High Court ordering Uganda Telecom Limited and Uganda Post Limited (now Posta Uganda) to pay 825 former employees of Uganda Posts and Telecommunications Corporation (UPTC). Uganda Telecom and Posta Limited were created when UPTC was disbanded in the 1990s in the government’s liberalisation of the economy. UTL and Posta took up 825 of the UPTC employees. The court also ruled
that the pension benets to the beneci bene ciari aries es must be ee eecte cted d without any further delay. “Where an employee’s contract of employment is taken over, it must be taken over on the same or beer terms and continues on the same terms and conditions, where there is a change of employer,” the court ruled. The court awarded the former employees of UPTC Shs5million each as general damages with interest of 18% per annum on pension and damages and costs of the suit.
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Refugees call for skills training for survival To beat the harsh realities of living in refugee camps, refugees f leeing DR Congo and finding shelter at Kyaka II Refugee Settlement in Kyegegwa district in western Uganda are calling for the Ugandan government to introduce vocational skills training
for a better life. The refugees s ay they need to support their families with clothes, food and dressing. They are asking government to extend to them salon skills and other forms of training to earn income. Due to lack of skills or any jobs, thefts have been
rampant in Kyaka. The refugees get food and construction materials from United Nations High Commission for Refugees (UNHCR). Kyaka refugee settlement has over 40,000 refugees from DR Congo.
July 13 - 19, 2018
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WEEK
Musevenii launches campaign to fight cancer Museven cancer,, heart diseases President Musevnei launched a physical exercise campaign on July 8 to ght Non Communicable Diseases (NCDs) like cancer, heart complications which make up 40% of hospital deaths. Clad in a white
shirt, khaki pants and gum boots, Mus boots, Museve eveni ni sta starte rted da walk of 10km from Kololo Independence Grounds to other parts of Kampala at 9am with sta of Ministry of Health and other health activists. He spoke of how
British Prime Minister May under pressure to resign over Brexit crisis The resignation of British Foreign Secretary Boris Johnson has caused more unrest in the Labour government of Prime Minister Theresa May over the deepening Brexit crisis. The resignation of Johnson, hours after that of Brexit Minister David Davis and his deputy, Steve Baker, piled more pressure on May over her soft Brexit plan. May hammered out a compromise with her deeply divided cabinet
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in an all-day meeting on July 6 but after after consulting consulting friends and allies since, Johnson decided decided he could not promote the deal and threw in the towel. Two years ago, Johnson was was the face face of the Brexit campaign and was expected to be Prime Prime Minister Minister after David Cameron resigned. Now the heat is being turned on Theresa May to follow suit since there is widespread discontent of her Brexit plan.
July 13 - 19, 2018
government kicked out diseases like small pox and polio. He also gave tips on how people should have light lunch meals and early supper, two or three hours before befo re bed tim time. e.
Resolve cases of Rwandans arrested- Rwandan envoy Rwandan High Commissioner to Uganda Maj. Gen. Frank Mugambage has advised Ugandan authorities to resolve cases of Rwandans arrested in Uganda. He said there have been many arrests of Rwandan citizens and also a failure to notify the Rwandan embassy by the ir U gan gandan dan coun ter terpar parts. ts. “We have put these before the Uganda authorities and when families come to us that our people have been arrested, we do not know where they are and their cases. It is important that we resolve this”. Mugambage was speaking at Rwanda’s 24th L iberation celebrations at his residence in Kololo recently. However Oryem Oke llo, the State Minister for International Affairs, said Uganda is a law abiding country and that anything done is in conformity with the law.
Museveni launches youth skilling venture in Kyotera President Yoweri Museveni has called on the people of Kyotera and Uganda in general to embrace government’s initiative of wealth creation through commercial agriculture and the four-acre production plan so that they are able to ght household poverty. “Devel “Devel-opment does not mean wealth. Masaka - Mbarara to Kabale road has been tarmacked since independence but don’t you nd poor people along this road?” he asked. Museveni was speaking at Kalisizo Community playground in Kali-
sizo Sub-County of Kyotera district on July 6 during the commissioning of the youth who aained skills in tailoring, carpentry and Joinery, welding and weaving, among others. He launched Kasolo Foundation; a private initiative started by the area MP and State Minister for Micronance Kyeyune Haruna Kasolo, to ght household poverty in the area. The President also launched the Kalisizo Women Empowerment Group at Kalisizo Town Council.
Humour
Did you know?
Why parrots are intelligent
The Mobile Money tax effected ef fected on July 1 is forcing Mobile Money agents countrywide to shun the services as they are counting losses
Fuel pump prices are again increasing countrywide with a litre of unleaded petrol going for more than Shs4000
Judges in the age limit petition have retreated to a quiet place out of the city to compare notes and tie up loose ends before the t he final ruling can be delivered.
Parrots Parro ts are more intelligent than most birds because they have a much larger SpM than that of other birds, according accor ding to new ne w research by University of Alberta neuroscientist neuroscientists. s. But what exactly is SpM? That is a short form for medial spiriform nucleus. It is an area of the parrot brain that is quite similar to an area in the brains of primates called the pontine nuclei. Both play a major role in intelligence. The pontine nuclei in the brains of humans, for example, is the structure responsible for transferring information between the two largest areas of the brain, the cortex and cerebellum, which allows for higher-order processing and more sophisticated behaviour. In humans and primates, the pontine nuclei are large compared to other mammals. This is what explains the high cognitive abilities of humans. Apparently, birds have very small pontine nuclei. Instead, they have a similar structure called SpM that has similar connectivity. Located in a dierent part of the brain, the SpM does the same thing as the pontine nuclei, circulating information between the th e cortex and an d the cerebellum. cere bellum. “This loop between the cortex and the cerebellum is important for the planning and execution of sophisticated behaviours,” said Doug Wylie, professor of psychology and co-author on the new study. So why is the parrot so much smarter than other birds? The SpM is very large in parrots. It’s actually two to ve times larger in parrots than in other birds, like chickens,” said Gutierrez. “Independently, parrots have evolved an enlarged area that connects the cortex and the cerebellum, similar to primates.” In other words, the scientists are looking at a fascinating example of commonality between the brains of parrots and those of humans. “The more we look at the brains, the more similarities we see,” the scientists say. It starts with sophisticated behaviours, like tool use and self-awareness, and can also be seen in the brain. July 13 - 19, 2018
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World Cup
St Petersburg: A ballerina watches the World Cup quarter-final match between Russia and Croatia in which the hosts were eliminated London, UK: England fans celebrate celebrate after their team’s second goal against Sweden Sweden in a victory that tha t secured a place in the t he World Cup semi-finals England’s Harry Kane tries to control the ball against Colombia. He scored a penalty during regulation time. It was his tournamentleading sixth goal. Cristiano Ronaldo nets hat trick with brilliant free kick in closing minutes to steal a draw against Spain 8
July 13 - 19, 2018
The Last Word
OPINION
The poverty of Ugandan elites By Andrew M. Mwenda
Bursting the bubble of our `intel `intellectuals’ lectuals’ by exposing exposing their most cherished ideals as a bunch of delusions
M
any Ugandan elites have been shouting themselves hoarse denouncing the tax on social media. They also claim they are already burdened paying “too many taxes”. With a tax to GDP ratio of 14%, Ugandans are among the least taxed people on this planet. And after the abolition of Graduated Tax Ta x (or tax per head), only 621,366 people are registered to pay the direct personal income tax, Pay As You Earn, in an adult population of close to 18 million people. But let us for argument’s sake say the tax is bad. The solution is simple: organise politically and stop government from collecting it. But I know Ugandan elites are politically unreliable. They dare not stand for their beliefs. They prefer to sit in the comfort of their oces, houses, and bars and ponticate against the government as if Uganda needs the intervention of foreigners to be saved from President Yoweri Museveni. This is where Museveni outshines all of us: when he felt the election was rigged in 1980 and the country mismanaged, he did not sit idly complaining. He picked guns, organised people, mobilised resources, built a national political coalition, and rallied international forces to this struggle. After ve years of combat he triumphed. Ugandan elites lack patriotism. They want to get public goods and services for free. They do not want to pay taxes that fund such services. They see the state as a cake to eat, not a cow to feed. Everyone comes to the state in search of personal advantage. Few see it as an institution to build for the collective good. This aitude stands in stark contrast to how Ugandan elites relate to social events like weddings, funerals, and churches to which they devote so much money without demanding accountability. Some Ugandan elites claim they are too poor to pay Shs200 per day for this tax. But this tax is imposed on social media, which is used on smart phones. How come “poor” Ugandans aord expensive smart phones? The social media tax is imposed on the middleclass, not on ordinary peasants. However, these elites use the institutions of mass communication to project their peculiar interests as those of everyone. This is how democratic debate in Uganda is rigged in favour of
a few. All governments need revenue: to keep law and order, to co-opt elites, and to provide public goods and services to their citizens. When a government’s political survival depends on generating revenues from its people, it will be driven by self-interest to govern in a more enlightened fashion. It will listen to its citizens about the policies necessary for growth so that it can generate more revenues. For many years, the productive margin in Uganda’s search for revenue did not lie in the domestic economy; in our gardens, factories, and shops. It lay with foreign donors. For every scal shortage, our government would take a begging bowl to Paris, Paris, London, Brussels, and Washington. This disarticulated the state from citizens and made international donors the most important inuence in policy making. It is impossible to build a democracy where foreigners fund the government because he who pays the piper calls the tune. Uganda’s actual liberation came accidentally, when international donors cut aid over the passing of the Antihomosexuality Act. The government of Uganda could have compensated this with new taxes. It was afraid of a political backlash and went on a borrowing spree from the domestic market. In only ve years, the domestic debt has ballooned to Shs12.4 trillion, trillion, and interest payment is now Shs1.9 trillion. The same Ugandan elites who have been complaining against this growing debt do not seem to realise that only taxation can get the country out of the debt spiral. If this tax is economically destructive, it will correct itself. The advantage with a modern economy is that it has high revenue elasticity. By elasticity I mean responsiveness – the tendency to grow in the face of positive incentives and to decline in the face of negative ones. If the tax on social media and mobile money hurts the economy, it will cause a decline in the rate of growth. It will not take long for government to discover that it has harmed itself. When a government extracts revenues from its people without formulating favourable economic policies and providing public goods and services in
return, private economic agents will most likely withdraw or fail to invest. Physical capital will depreciate, the economy will decline. A government that sought short-term gains through destructive taxes will nd that in the long term it has undermined the economy and, therefore, its source of revenue. Any government facing a scal crisis will be in political decay. The claim that Ugandans do not want to pay taxes because government is not accountable is nonsense. In the last election, opposition leader Kizza Besigye got 3.5 million votes (he claims 7 million). If every one of the 3.5 million contributed just Shs 1000 per month to FDC, the party would raiseShs42 billion per year or Shs210 billion over ve years, or Shs558 billion if the 7 million votes is the correct gure. With such nancial muscle, Museveni would become history. If Ugandan elites want change, why are they not investing in the man ghting for it and who has never stolen the money they have contributed to his cause? Ugandans lack commitment to the state and its politics because they see is as a place you go to extract things, not one where you grow the wealth of the nation. That is why all our political parties are cash-starved. No one wants to contribute to politics, regardless of whether there is a precedent of their money being stolen. This sharply contrasts with Rwanda where citizens pay taxes diligently and even make voluntary contributions to the state whenever need arises. For example, Ugandans want increased wages for teachers, medical workers, and other government employees. They also want free education, healthcare, cheap water and electricity, good roads and bridges etc. But they do not want to pay for them. This shows we treasure our faith, weddings, and funerals because they are socially rewarding but we do not treasure political liberation and economic advancement. For example, if you call a wedding meeting, everyone will come and contribute generously. But if you call a meeting to raise money to begin a business, no one will show up. That is the real problem of Uganda.
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COVER STORY
Musev Muse veni’s secret
les on Kayihura By Haggai Matsiko That President Yoweri Museveni deploys different layers of spies against some of his most senior security chiefs is no secret; what is unknown is how this process sometimes works . Take the case of the former Inspector General of Police, Gen. Kale Kayihura, who is now in detention in Makindye Military Barracks in Kampala. Altho Alt houg ugh h many many rep repor orts ts cla claim im tha thatt Kay Kayihu ihura ra is in det deten entio tion n ove overr the the Ma March rch 17 17,, 2017 murder of the Assistant Inspector General of Police Andrew Felix Kaweesi, insiders say Museveni was, in fact, acting on information that Kayihura was using crime preventers to train rebels in Mubende with the backing of Rwanda.
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COVER STORY
President Museveni shakes hands with Kayihura as other of ficials look on in 2017
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resident Museveni was convinced the police chief was up to some mischief and that he had the money to implement it. According to sources close to State House, the President received reports that Kayihura and the President Principal Private Secretary (PPS) Molly Kamukama had allegedly received a kickback of Shs17 billion each—from a police arms deal. For critics, the allegations sounded outrageous because for anyone to give a kickback of Shs. 34 billion, at the very least, the deal needed to be Shs.340 billion or even double this gure as kickbacks tend to be 5-10 percent of the total value of the deal. Such a deal would have easily wiped police’s budget, which is about Shs. 500 billio bil lion. n. However, insiders say President Museveni rarely leaves anything to chance and pays aention to these reports, however outrageous they may seem. For instance, in May last year, The Independent reported how President Museveni had been told that senior government ocials had hacked the central bank system and stolen some $38 million. After reading this report, President Museveni is said to have met the agents behind these reports. Apparently, one of the agents told him that he was involved in transporting huge sums of money for ocials looking to sponsor rebel activity. The agent claimed he had dropped US$ 1.5 million in Mbarara, US$ 1 million in Masaka and another US$ 1.5 million in Mbale to coordinate rebel activity. When the president probed further, the agent said he had given the money to someone at Agip Motel in Mbarara. But it seemed suspicious that an agent would just
hand US$ 1.5 million to someone they did not know just like that. The central bank governor would also later report to President Museveni that these allegations were a hoax as no such money had been stolen from the bank. For insiders, this case was one of the clearest examples that President Museveni will not simply dismiss any intelligence, however, unbelievable it may seem. In the Shs.34 billion kickback case, those behind beh ind thi thiss info informa rmatio tion n told told the pre presid sident ent that Kamukama invested her cut in real estate, insiders say. But apparently, when Museveni tried to trace where Kale had
That boy is very dangerous,” Kayihura reportedly told Kamugisha, “stay away from him
put his loot, he could not put a nger on it. Could it be in a secret war chest for nancing an impending rebellion? What critics insist are “fake intelligence reports” before bef ore the pres preside ident nt sug suggest gested ed it cou could. ld. Against this background, The Independent has learnt that on June 11 - two days before he was arrested, Kayihura travelled to Kampala and met the president’s son, Maj. Gen. Muhoozi Kainerugaba. Kayihura had got information that he was to be arrested and his plan was to lobby Muhoozi to intervene. Maj. Gen. Muhoozi had over the years become bec ome Kay Kayihu ihura’ ra’ss close close all ally y in in the the enti entire re security establishment and Kayihura hoped to get him to help clear his name before President Museveni. It did not work. Part of the reason was what Kayihura already knew – that the allegations against him—specically, that the Rwandan leadership was using him to aempt to overthrow Museveni, were of a serious nature. Besides, he had watched as the Chieftaincy of Military Intelligence (CMI) operatives drew the dragnet around him. In one swoop, CMI had arrested his close aides; Senior Superintendent of Police Nixon Agasirwe, the former commander Special Operations Unit, Senior Commissioner of Police Joel Aguma, the commandant of the police Professional Standards Unit, Assistant Superintendent of Police Magada, crime intelligence; Benon Atwebembeire, Atw ebembeire, Sgt Abel Tumukunde, the Kampala Metropolitan Police ying squad commander, Faisal Katende, ying squad and Amon Kwarisima. These had been taken to the Court Martial and charged with unlawful possession of rearms and grenades July 13 - 19, 2018
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COVER STORY
President Yoweri Yoweri Museveni and Gen. Kale Kayihura before the fallout.
ordinarily a monopoly of the Defence Forces. The group was also charged with handing to the Rwanda government two prominent persons; one Lt. Joel Mutabazi; a former presidential guard for Rwanda President Paul Kagame who had sought refuge in Uganda, and Jackson Kalemera. According to court proceedings, the two ocials were handed to Rwanda without their consent. But Rwandan authorities say these were handed to them through ocial channels. The Independent has seen a document showing a list of persons, cars, cash, cows and phones that Ugandan and Rwandan police authorities ocially handed to each other. Mutabazi is listed amongst those handed to Rwanda. In another swoop, CMI had picked Abdullah Kitata, the self-appointed patron of Boda Boda 2010. While Kitata was arrested as part of the investigations into the murder of the Case Clinic accountant, Francis Ekalungar, his outt—Boda Boda 2010 would later be linked to the issues with Rwanda. In yet another swoop, CMI rounded up; Richard Ndaboine, the former head of cyber intelligence, Col. Ndahura Atwooki, the former head crime intelligence, and Herbert Muhangi, the former head of Flying Squad, among others.
Kamugisha flees, Omondi arrested By this time Kayihura knew that his turn was fast approaching. The Independent has learnt that since Kayihura’s arrest, several of his close functionaries have been living in fear of imminent arrest. One of these, Blaise Kamugisha who is the head of the once powerful National Crime Preventers Forum, was last month 12
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forced to ee to Kenya after a tipo that Internal Security Organisation (ISO) and CMI operatives were looking to arrest him over allegations that crime preventers were working with Kayihura to organize armed rebellion against Museveni. Insiders say while in Kenya, Kamugisha contacted President Museveni who advised him to return to Uganda. By press time, The Independent had learnt that Kamugisha had returned but then again went into hiding unsure if he can survive the clutches of ISO – that is he cannot feel safe unless and until he meets Museveni directly. Given that Kayihura was the main benefa ben efacto ctorr of of the the cri crime me pre preven venter ters, s, who whose se numbers he personally put at 11 million, it is clear to see how any suspected rebel activity by the group can easily be connected to him. Kamugisha was a close Kayihura associate and had been given the lucrative billio bil lion n shil shillin ling g deal deal of sup supply plying ing foo food d to to the the police force. Now, state media report that this contract is part of the investigations government is conducting linking Crime Preventers with plans to organise a rebel group. Kamugisha’s case becomes even more interesting when it is connected to that of another young man, Michael Omondi; a Kenyan student of Makerere University. In April last year, police’s defunct Flying Squad intercepted the 21 year-old student at the Uganda-Kenya border post of Busia. Omondi, a Kenyan, was returning from his home in Kisumu. According to sources, police was interested in him because of the message he had reportedly carried on his way out of Uganda - for Kenyan opposition politician Raila Odinga. It was assumed he was returning with feedback. When he was intercepted, Omondi
reportedly called Kamugisha, who was known to have a direct line to then Inspector General of Police (IGP), Kayihura. Omondi had studied with Kamugisha and knew his connections. He now wanted him to call Kayihura and secure Omondi’s release. But when Kamugisha called Kayihura, what the general told him reportedly stunned him. “That boy is very dangerous,” Kayihura reportedly told Kamugisha, “stay away from him.” So what could have made Omondi, a 21-year old university student, very dangerous? At the time, police had accused Omondi of driving Kaweesi’s killers to the spot where the murder took place. From the Busia border, they had driven him to Jinja and he was now in detention at Nalufenya detention facility, which had become infamous for torture. So Blaise also called Omondi’s sister, one Mariam Awino, and told her that Police Flying Squad had arrested her brother from the border and taken him to Nalufenya Police Post. But Omondi’s sister easily dismissed this becaus bec ause, e, she sai said, d, her bro brothe therr did did not kno know w how to drive. Indeed, it would later emerge that Omondi’s arrest had very lile or nothing to do with the Kaweesi murder. But the scheme he was involved in appeared extremely dangerous for President Museveni. It turns out, intelligence operatives and some agents at State House had approached Omondi proposing to him to carry sensitive information to Kenya’s opposition politician honcho, Raila Odinga. The information, they said, would have a major bearing on the Kenya presidential election of August 2017. The agents claimed that they had a database compiled by President Museveni’s people, which had details of Ugandans who would vote for Uhuru Kenyaa to give him an edge against Odinga. Around this time, campaigns for the 2017 Kenyan elections had already heated up and the two main contenders— Kenyaa and Odinga were already trading accusations against each other and the fear of election violence was already hanging in the air. Stakes were high. This would be the fourth time Odinga was contesting for the highest oce in the land. Whoever was vending information pointing to possible rigging by Kenyaa, therefore, knew he would have his competitor’s undivided aention. Omondi, who is said to be close to Odinga, immediately travelled to Kenya to relay this information and to get a down payment the agents had requested.
COVER STORY
But Odinga appeared skeptical and was unwilling to deposit any money until he was given a sample. Apparently, he asked Omondi to tell the agents to give him a sample of the data. However, after meeting Omondi, Odinga called President Museveni and told him about it, insiders say. As Omondi returned from Kenya, police’s Flying Squad intercepted him at the Busia border. But given how politically sensitive the issue was, police could not say they had arrested him because of that issue. This was April, a few weeks after Kaweesi’s murder on March.17. Kaweesi was killed in a suburb of Kampala City in a hail of bullets that also killed his bodyguard Kenneth Erau and driver Godfrey Mambewa. The incident saw Police, the Chieftaincy of Military Intelligence, and the Internal Security Organisation (ISO) in a urry of arresting all sorts of suspects. susp ects. At one point the number of arrested suspects was over a hundred. It now appears that the Kaweesi case had become bec ome a carr carry-a y-all ll for all arr arrests ests;; incl includi uding ng those – like Omondi, that were totally unrelated. Apparently, after receiving information from Odinga, President Museveni directed the arrest of several intelligence ocials who were involved. Apart from this, security agencies also sent operatives to Nalufenya disguised as suspects in the Kaweesi murder. The idea was to spy on the suspects and get them to voluntarily confess. It would not be the rst time this kind of thing is happening. For instance, when Mathew Kanyamunyu and Cynthia Munwangari were arrested over the murder of child rights activist, Kenneth Akena on Nov.12 2016, another woman was also arrested. This woman would be detained with Munwangari wherever police or the prison authorities took her. The idea was to get Munwangari to conde in her about what really happened that day. Likewise, security agencies had planted spies; including soldiers from the Special Forces, to spy on the Kaweesi suspects. At the time, Kayihura had camped in Jinja and would be at the facility sometimes participating in the interrogations of the suspects. President Museveni would call Kayihura and then Kayihura would connect him to the SFC operatives. One of the SFC operatives kept in touch with President Museveni. So Kayihura possibly knew about the Omondi case and might have been surprised when Blaise brought it up. The other view is that Omondi, through his State House connections, had other hot information which he shared.
Kenya's President Uhuru Kenyatta
Raila Odinga
Uganda, Rwanda suspicions Going through some of these reports, it is hard to sort fact from non-fact. But they show a clear thread of a concerted eort to implicate Kayihura. Even if the reports may appear inaccurate or “fake” as some insiders are referring to them, those who have worked closely with President Museveni say that he hardly dismisses them before interrogating or investigating them further. Indeed, it is important to note that in the past, President Museveni has acted on such reports, especially when dealing with issues Rwanda. For instance, in the past The Independent has reported how in January 2011, Museveni once summoned Rwanda’s High Commissioner to Uganda, Brig. Gen. Frank Mugambagye for a brieng at State House Entebbe. At the time, tensions between the two countries had been heating up. Ugandan military intelligence had
arrested a young Rwandan travelling through Ntungamo, brought him to Kampala, and detained him under accusations that he had been sent by Rwanda to kill the First Lady, Janet Museveni. But this was just one of any reports that were geing to Museveni’s desk almost on a weekly basis. Another intelligence report to Museveni claimed the Rwandan president was heavily funding the election campaign of Uganda’s main opposition leader, Forum for Democratic Change (FDC) party president, Dr Kizza Kizza Besigye. Then another said Kagame had held a meeting with Libyan leader Muammar Gadda in Sirte, Libya, during which the two agreed to organise and nance an armed insurrection against Museveni originating from the eastern region of the Democratic Republic of Congo (DRC). Museveni reportedly told Mugambagye he had concerns arising from intelligence reports he had received - and wanted to send a verbal message to President Paul Kagame of Rwanda regarding them. But such reports were not one way. Kagame, sources say, had also been bee n rece receivi iving ng rep report ortss of of plots plots by Musev Museveni eni to destabilise Rwanda or even kill him. Indeed, around the same period, the Rwandan security services reportedly got evidence that the Coordinator of Intelligence Services in Uganda, Gen. David Tinyefuza, had sent the Director General of the External Security Organisation (ESO), Robert Masolo, to South Africa to speak to Rwandan dissident generals Patrick Karegyeya and Kayumba Nyamwasa. Masolo had then wrien a report to Museveni, largely based on information given to him by Karegyeya and Kayumba, telling tall tales of how Kagame was heavily funding Besigye using Sudhir Ruperelia’s defunct Crane Bank. It would take reassuarances from President Kagame that his leadership was not involved in any of these things for President Museveni to ignore the reports. Back then, at a meeting with Mugambagye where Kagame replied to Museveni, the Rwandan president said: “Please inform President Museveni that I personally or the government of Rwanda generally have no desire, intention or plan to inuence the election outcome in Uganda,” Kagame said, “Whoever is writing such intelligence reports must be harbouring an interest to cause mistrust betwee bet ween n our our two cou countr ntries ies.” .” Reconciliation between the two presidents in 2011 further buried all these allegations and counter-allegations. Even the young man who had been arrested was later released and sent back to Rwanda. But, it now appears, the Kayihura case has once again led to a slew of “fake” intelligence reports about Rwanda hiing President Museveni’s desk. July 13 - 19, 2018
13
NEWS ANALYSIS
By Flavia Nassaka
D
avid Kizza Kakobogo died on July 07 under mysterious circumstances. He had been drinking with his supporters when he all of a sudden developed stomach aches that he later succumbed to. The death of the aspiring Local Council One (LC 1) chairman for Gganda village in Nansana municipality was not taken lightly. With suspicions of poisoning, many of his supporters declared that, in protest, they were not going to participate in the election that would be held days later on July 10. Former member of the Constituent Assembly and NRM historical Francis Babu watched the news of the rioting villagers from his plush home in the upscale Naguru suburb. “I asked myself, Is this really necessary?” he told The Independent as he spoke of the hype that the election was given. The posters, public address systems and procession of cars are typical of a political event according to him and not a leadership one - like an LC is supposed to be. According to the Chairman of Electoral Commission, Justice Simon Byabakama, 17million people were registered to cast their votes and elections took place at 28,749 polling stations in the 60,800 villages. Contrary to Babu’s view, LC elections have become a big political event, almost at the level of parliamentary and district elections, if not presidential elections. Part of the reason is that Ugandans had waited 17 years to choose their LC leaders again – and most are unhappy about the old set. The last LCI elections were held in 2001. Back then, the country was being governed under a de facto one party system called the “Movement System” but it has since 2005 been under a multiparty system. In 2006 the LC I elections were frustrated by a Constitutional Court ruling on the petition by then opposition member of Forum for Democratic Change (FDC), Rtd Maj Rubaramira Ruranga, who challenged the legality of the incumbent Local Councils because they were set up under a dierent governance system. He argued that ushering in the multiparty system required amending the law. The law was never amended and the country has under gone over three cycles of general elections without choosing these grassroots leaders. The dates would be set several times and cancelled. Many explanations have been made as 14
July 13 - 19, 2018
LC 1. contestant for Kifumbila zone Bukasa, John Kaddu campaigning for the position of the chairperson on July 8. INDEPENDENT/JIMMY SIYA
LC elections nally Will they bring leadership leadership or be another layer of politicians at village level? to why the country was not conducting the polls. First the government always said there was no money to conduct the elections until December 2016 when they resolved to have the Local Government Act amended such that people could now line up behind their candidates during elections of chairpersons for village (LC1) and parish (LC2) levels instead of the ballot box style. The mode was rejected by; especially, members of the opposition and some civic organisations. For instance, the Citizens’ Coalition for Electoral Democracy (CCEDU) wrote an open leer to President Museveni protesting the mode of voting. The coalition of some 800 members across Uganda argued that voting by lining behind candidates fails to meet constitutional and international standards for public elections and could foment conict and discord in
communities. After successfully amending the law in parliament, the commiee on Public Service and Local Government recommended that the elections be held not later than March15 last year. But, B ut, it has taken more than a year for this to nally happen. Although this can partly explain why there was unanticipated interest in LC oces, if not the voting, some like Makerere University Political Historian Mwambutsya Ndebesa say the interest is not in the vote but the relevance of the oce. For him, the oce is the rst court arbitrating on issues that aect the village. Research by a local NGO Barefoot Law Uganda has put the percentage of people who seek justice through the informal court system; like the LC, at 80%. His view was shared by the president when he released a statement
NEWS ANALYSIS
encouraging voters to take part calling the LC oce a cornerstone of government planning and mobilisation for development and stability. Museveni said the country needs the right people to head village units if problems like land wrangles, insecurity, and theft are to be nipped in the bud. Museveni and his NRM party had given each of their loyal MPs Shs3 million to spend on LC elections in their respective constituencies. In addition to that, they appointed regional mobilisers to ensure their party wins the most LC positions. For Babu, this is exactly where his party went wrong. “Community elections shouldn’t be about parties and politics. It should be about leadership. People should vote for a person they respect. Leadership has no aliations.” Babu has held LC positions before. As the Resistance Council (RC) Chairman for Water Board Village in Nakasero parish in the 1980s, Babu says he was leading a village of about 250 people and he would deal with their issues without consideration for their political beliefs. He only cared for the interests of the village. The voting would take a similar form, he recalls. “I had gone for prayers at All Saints Church and they said we are choosing
Key gures
600,800 villages that voted
17 million people registered to vote
28749 polling stations
3821 villages excluded from the polls. They were not captured in the Electoral Commission’s national data system.
you to be our leader,” he said and another person seconded another name to contest against Babu. “We spoke for ve minutes each,” he says, “At “At the end of the speeches; s peeches; my colleague stepped down for me. Then we elected members of the commiee by lining up behind them.” He speaks of how the new system
should have emulated the old RC method since the LC oce is more than a political oce but an entity that gives the village direction. According to local government guidelines, a village should comprise 60 households and a parish, 300 households and the LC I is the administrative unit at that level. It is involved in maintenance m aintenance of law, order and security, mobilising people for self-help projects, recruitment into the police, army, and other security agencies, and monitoring of activities undertaken in the area by the central government, local government, and NGOs. The LC 1 chairman; who works with a commiee of eight members, witnesses transactions such as sale of land, houses, cows or goats, and is a signatory on most ocial documents which require local council stamp. These functions give the LC I immense power in the day-to-day lives of citizens. That is why, Babu says, if things go wrong here, it is likely to impact the operations of the whole country. He, for instance, notes that it’s also wrong to have the LC chairman; especially now under the era of multiparty politics, to choose members of his executive. For Babu, this means members who do not agree with the oce holder will have nowhere to run to. He says conducting this election just three years to 2021 when the country is to go to general polls again is a test to show whether Ugandans are able to evaluate the kind of leader they want and put them on the steering wheel. Ndebesa says unfortunately the runup to the LC vote had become very polarising. When we spoke before the election he feared there could be chaos - based on the intimidation and intrigue considering that the method of voting by lining was feared to cause. Ndebesa spoke about people staying away “because they are already disgusted “. He said this means the government will have to conduct a lot of civic education on the role of an LC leader if the country is to reap anything from the LC elections. Babu agreed. He warned that because a crop of people who do not command respect might end up in vital positions, there should be constant supervision and education to give villages direction on; especially, how the justice system works if they are to eliminate the vice of people taking advantage of their positions to break the law. For instance he says it’s time for people to know perks such as giving leaders monies in case of a land purchase being illegal. July 13 - 19, 2018
15
NEWS ANALYSIS
By Ronald Musoke
U
gandans might be blessed with many lakes, rivers and streams on top of being one of only 13 countries in the world able to receive rainfall for at least eight months every year but a recent study has found that more citizens think their access to water is geing worse. The study titled, “Clean and safe? Ugandans’ experiences and opinions on aordable access to clean and safe water,” was released on June 27 in Kampala by Twaweza East Africa. Twaweza’s Tw aweza’s survey under their Sauti za or “Citizen Voices” programme Wananchior Wananchi sought to gauge Ugandans’ experiences and opinions on aordable access to clean and safe water. The ndings are based on data collected from 1,971 respondents across Uganda between January and February 2018. The survey sought to nd out how Ugandans are able to access water from a piped network or from any other improved source; how widespread—and how eective rainwater harvesting as an alternative source is and, how long it takes for people to collect water, and who bears this responsibility. The study found that in both rural and urban areas, many people are forced to make dicult choices around cost, time, and convenience against health and hygiene. Interestingly, the survey notes that access to improved water sources is improving in rural areas with no major change in urban areas. Three out of four Ugandans (74%) have access to an improved water source, meaning one that provides cleaner and safer water. Still, Ugandans in urban areas (86%) are more likely to use improved water sources than those in rural areas (69%), as are richer Ugandans (84%) compared to poorer ones (71%). Overall, one out of four citizens (24%) have access to piped water but this is much higher in urban areas (46%, compared to 15% for rural citizens) and among richer Ugandans (51%, compared to 14% of poorer citizens). Still, in both urban and rural areas, boreholes are the main source of drinking water for more households (rural 38%, urban 23%) than any other type of source. Just 2% of households have water piped into their dwelling. One out of six rural households (15%) depends on surface water sources such as rivers, streams, dams and lakes, though this water can by very unclean. Rainwater can provide an aordable and accessible alternative source of clean water; and eight out of ten households (78%) harvest it. 16
July 13 - 19, 2018
A boy fetches water in Budaka Town Town Council. Budaka Budaka in eastern Uganda Uganda is one of the few town councils supplied with piped water. INDEPENDENT/JIMMY SIYA
Uganda’s water challenge Why Ugandans are struggling nding water yet it is everywhere Citizens in both rural and urban areas said there are fewer water points (43%) and distance to water points (39%). In the urban areas, although there is access to piped water, many households cannot aord this water. There is also the issue of irregular supply. As a result, four out of ten citizens or 40% of Ugandans say their access to clean and safe water has worsened over the last 12 months, compared to three out of ten who say it has actually improved. Further, for most households (69%), the rainwater they are able to harvest runs out after a week or less, the last time they collected it. Only one out of ten
households (7%) was able to use it for a month or more. When it comes to the amount of time spent fetching water, citizens in the rural areas are the most disadvantaged as it takes them one hour and 11 minutes on average to collect water in rural areas compared to 49 minutes in urban areas. Despite these dierences, a similar and substantial proportion of rural (14%) and urban households (10%), as well as richer (10%) and poorer (15%) households have to spend over two hours collecting water. In one out of four households (25%), the responsibility for collecting water falls on the women, the female head of
NEWS ANALYSIS
Sa mm-Cheptoris
Mary-Goret titi Naka bu bugo
(28%). As a result, half of the citizens (47%) are not satised or not at all satised with the performance of their local government in terms of providing water services. A minority—one out of four households (28%)—are satised with their local governments water services.
Few water sources
households or the wife of the household head. And in nearly two out of four households (48%), children are fully or partly responsible for this task. Nationwide, and in rural areas, the two main challenges cited by citizens in accessing clean drinking water are linked; a shortage of water points (43%) and distance to water points (39%). In urban areas, the cost of water (36%) and irregular supply (29%) are mentioned the most. A large majority of Uganda’s households (70%) treat their water before drinking, to make it safer. This is again higher in urban (82%) than in rural (65%) areas. It is also higher among wealthier households (89%) than among the poor (52%). Most of these households boil their water (60%). Overall, citizens are not satised with the trends in access to water. Four out of ten citizens (40%) say their access to clean and safe water has become worse over the past 12 months, compared to three out of ten (30%) who say it has improved. However, more citizens say their access to water is geing worse than it is geing beer. Poor Ugandans (46%) and those ones who live in rural areas (44%) are more likely to say the situation is geing worse than those in urban areas (30%), and those who are relatively rich
Nationwide, the two main challenges cited in accessing clean drinking water are linked: a shortage of water points (43%) and distance to water points (39%). In urban areas, the cost of water (36%) and irregular supply (29%) are mentioned most. The average time required by rural households to collect drinking water is 71 minutes, of which 30 minutes are spent waiting at the source. The times are a lile lower in urban areas: 49 minutes total collection time, of which 23 minutes are spent waiting. Two out of ten urban households (20%) and a similar number of wealthy households (25%) need less than ve minutes to collect water. In comparison, in the rural areas, 14% of households need over two hours to collect water, and even in urban communities, 10% of households take more than two hours to collect water. Marie Nanyanzi, Sauti za Wananchi Ocer at Twaweza, said “On the positive side, rates of access to improved water sources are high by regional standards and, according to other data sources, appear to have been steadily rising in both urban and rural areas. Nanyanzi says the distance to a water source plays into the time it takes one to collect this water, the cost, and safety of this water. In the rural areas, it takes over an hour to collect water and half of that time is spent waiting in the queue. In the urban areas, the time is much shorter (less than an hour) but still people will take an average of 20 minutes in the queue. About 20% of households collect water under 5 minutes and 25% of people in urban areas spend under 5 minutes. These perceptions appear to contradict
the ndings from the Uganda Bureau of Statistics (UBOS) that access to water is improving. Looking at longer term trends, using data from surveys conducted by the Uganda Bureau of Statistics (UBOS), we can see a clear increase in access to improved water sources in rural areas since 1989, from around 40% of rural households in the early 1990s to around 70% now. In urban areas, the increase has been less dramatic, from around 80% in the 1990s to around 90-95% now. Dr. Mary Gorei Nakabugo, the Uganda Country Lead of Twaweza and Regional Manager, Uwezo East Africa noted that despite some important successes, the story around access to water is one of inequity, with rural areas facing more marked challenges than urban areas. “The slower rate of growth in access to improved water in urban areas presents challenges for the future with population growth and increased rural to urban migration,” she said. Nakabugo says the government will need to double down on eorts in both rural and urban Uganda to ensure that the hard-won gains of the last 20 years are not eroded.
Inconvenient water sources Responding to the ndings, Eng. Joseph Oriono Eyatu, the commissioner in charge of rural water supply and sanitation at the Ministry of Water and Environment said although the distribution of water sources appears to be everywhere on the map but once you reduce it to the micro level, it is not evenly distributed. Eyatu said over 30 million Ugandans live in rural areas yet there are up to 122,737 water sources scaered across the country and these are not distributed evenly. Eyatu said there are up to 12,000 LC villages that do not even have a single source of water but we also have villages that have over 10 sources. Some of those villages don’t even have a spring or borehole. “It is the level of convenience which has gone down. This is why people are saying their access to water is geing worse,” he said, “Everybody wants a high level of water service. Everybody wants a borehole in their compound but it i t costs cos ts ab out Shs8m S hs8million illion to sink si nk one.” “It could be cheaper to invest in a piped scheme but still this is beyond our reach at the moment,” he said, “We need to accept that Uganda is still a poor country.”
July 13 - 19, 2018
17
INTERVIEW
This year marks the 229th anniversary of Bastille Day and you are celebrating it under the theme: “1968: a new era for women.” Explain the motivation behind this theme. his year’s Bastille Day reects on a particular moment in 1968 which brought about a cultural revolution in France. University students started a movement saying they wanted a less conservative society with more freedoms.The trend was soon picked up by factory workers. At the time, workers were working in a “Fordism” manner—working along a chain, doing the same work in a systematic way which became boring. They wanted to have something dierent. The workers and students’ movements turned into massive demonstrations in the streets and even went into violence. Then women also picked up. At the time, women were seen as stayhome mums. They were there to have and raise children. They had very limited access to contraception and they were stuck in a certain box. Women needed the authorisation of the husband to have a bank account and to work. A woman needed to refer to a male colleague to have access to her own money. Women were even forbidden to wear trousers. So women wondered why they have to submit to men. So this year’s Bastille Day is celebrating the start of this new era for women. We gained more rights, more independence and more emancipation. My message is this ght is not nished yet as statistics still show that women are yet to realise true equality in terms of rights and
More French companies T coming Stephanie Rivoal, the French Ambassador to Uganda spoke to The Independent’s Ronald Musoke on the relevance of this year’s Bastille Day theme and the current Uganda-France relations
18
July 13 - 19, 2018
opportunity. Certainly this theme rings true for Ugandan women too. As an outsider, I am amazed by the place of women in Ugandan society; the Speaker of Parliament is a woman, the First Lady is a minister. There are many more powerful ministers, powerful female MPs and powerful ladies who are running companies. I know many of them personally so I feel women have a strong place in Uganda but this is mostly in the urban areas. In the rural areas, it is a slightly dierent story. The women are still very involved with collecting the rewood, cooking, and doing the work in the elds. When I visited Karamoja I discovered that culturally women also do the construction of houses and I was wondering what men do in that case. I nd that women in rural Uganda work harder and they have probably too much on their shoulders. They are also exposed to gender based violence very much. This is unacceptable as it is everywhere else in the world. When you put down women, the entire society suers. It is in the interest of everyone to respect women and give them some economic opportunity. Why, do you think, women are still underrated the world over? It takes a deep cultural change on the men’s part to understand that women will never be a threat to them. We are their partners in life and in the development of society and once men understand that sharing power would mean that everyone benets and that domination is not necessary and does not lead to the right progression of society, it will make a big dierence. What explains the popularity of Bastille Day among modern French people? The French people have always liked ghting and demonstrating for their rights, justice and equality. It is
INTERVIEW
deeply ingrained in them. From a very symbolic standpoint, Bastille Day is a day of freedom and liberation. I think the French people understand that rights, justice, and equality require require constant aention, constant energy, and constant ght and we should never sit back and think that everything is ne. We should always try to improve our society. So we celebrate Bastille Day in a very joyful way with one important concept: freedom. Away from Bastille Day, how have you found your stay in Uganda so far? The more I am in Uganda, the more I love it. I have been to Karamoja twice and I am going back in a few weeks after Bastille Day. I have been to the north. I visited the Gorillas which was a “wow” experience for me. I absolutely loved it. I went to see the chimps in Kibale National Park. I also went to see Queen Elizabeth National Park. I have visited all the countryside and I am amazed by Uganda’s beauty. I can relate to Sir Winston Churchill’s quote about the Pearl of Africa. The Ugandan people have been warm and welcoming to me and I enjoy a lot the rapport with the Ugandan people. So I feel adopted by Ugandans and I nd it extremely nice to work here. What still does not work for you though? Well, it may seem anecdotal but I think the pollution in Kampala is tough. I think people should stop burning things in the open air. We all complain about the trac jam although the quality of roads has vastly improved. I am a very impatient lady, so I don’t think there is one country that can keep up with my pace. But I wish everything would be done quicker here. Most of the time when I work with Ugandans, I put a lot of energy and then things move a lile faster. So it is possible. How would you describe the current relations between France and Uganda? I believe we are enjoying very friendly, protable and frank relations. I hope that the authorities and the Ugandan people are enjoying our presence and see benets. We are very very pleased with some developments; military cooperation, the development projects, and the business that we are bringing. We will continue to help with the infrastructure, water, waste management, and other priority projects. What remains very important is respect: respect of the country, respect of the elected people and respect of leaders and respect of all Ugandans in every capacity. But I hope that even with my acknowledgement of this, it does
not prevent me from making statements about issues which I feel strongly about; like the women, for example. At the start of your tour of duty in late 2016, you said that you were particularly aracted to Uganda because of its geo-politics, business prospects, and humanitarian challenges. Have these sentiments changed in any way? Uganda is very much involved in solving the crisis in South Sudan. Of course there is Congo; Burundi and Rwanda in the southern part and the business relations with Tanzania Tanzania and Kenya. So I still believe Uganda is central geographically but also in terms of conict resolution and building the East African Community. In terms of security,
I believe we are enjoying very ve ry fr frie iend ndly, ly, profitable and frank relations. I hope that the authorities and the Ugandan people are enjoying our presence and see benefits
I know that AMISOM is staed vastly by the UPDF. We also know that terrorism is still a threat in Somalia and it is one of the top priorities of my government to ght terrorism in any shape or form and we will continue supporting Uganda on that front. As far as humanitarian issues are concerned, unfortunately, the crisis is still there with the South Sudanese refugees in the north but also now with the Congolese, not forgeing the historical refugees from Burundi and some from Rwanda. The situation remains fragile and we continue to see how Uganda is trying to help yet they have their own development concerns. What do you make of the eternal tension in the Great Lakes region? Relationships among neighbouring
countries are up and down. But when you have strong economic links you will have peace. Europe was built initially on a treaty based on steel. We agreed not to compete on steel and we agreed to have an agreement between ourselves of an economic nature and that was the rst pillar of Europe’s (stability). So I am inclined to think that economic links between countries would ensure that these countries don’t ght each other. How have you been promoting French business interests in Uganda? Total is now leading the oil project in Uganda. It is good news for France. We are hoping that would bring more companies into Uganda. On the infrastructure front, SOGEA SATOM has been very active in Uganda on roads but also on water treatment. They have have a strong appetite to do more work in Uganda. For the rst time, last year, there was a delegation of 40 companies to Uganda. They were from a variety of sectors and they were led by the head of the government’s syndicate business union—the Mouvement union—the Mouvement des Entreprises Entreprises de France (MEDEF). France (MEDEF). That was extremely positive. They will come again next year. So over the last 12 months and 12 months ahead, I think we will have over 100 new companies come into Uganda to have a look and see what they want to do here. The numbers are growing and we are very hopeful. There is defnitely a growing interest from French companies to come and invest in Uganda but what specifc challenges do they face once they are here? I shared their concerns the last time we had a meeting with the President. The number one thing that a businessman needs in a country is stability; in legislation and the tax regime. Things need to be clear from the start. If they believe that rules are going to change every other year—on tax, work permits, investment decisions, they get put o. Right now, the rules are very clear and there are many incentives. The second thing they don’t like at all is the bureaucracy—lost papers, delays. The last thing is about keeping your commitments. When you sign a contract with whomever and you agree on a schedule, this ought to be respected, meaning that overturning a signed contract or not respecting a timetable kills trust. This is not me talking, it is the investors talking and because becau se I come from a busines bus inesss side, si de, I understand them. Why should I invest two years negotiating a contract and when it is signed I don’t know whether it will be honoured? July 13 - 19, 2018
19
RWANDA
Parliamentary polls Seven parties seek alliance with RPF-Inkotanyi By John Mbaraga
A
s preparation for the forthcoming Parliamentary elections continue; with political parties conducting civic education and electing ag bearer bea rerss to to repr represen esentt them, them, it has emer emerged ged that some of them could form a coalition with the ruling Rwanda Patriotic Front (RPF)-Inkotanyi. Their strategy is simple; to ride on RPF’s support to secure seats in parliament. Rwanda has 11 registered political parties and four have so far conrmed they are ready to take on RPF in the polls the National Electoral Commission (NEC) scheduled for September. They include the Liberal Party (PL), the Social Democratic Party (PSD), the Democratic Green Party of Rwanda (DGPR), and the RPF. The other seven political parties are said to be in talks with RPF. The Solidarity and Progress Party (PSP) is one of these parties, and its chairperson, Phoebe Kanyange, told The Independent that they have already discussed the maer of forming an alliance with RPF ocials. “We also gave them a list of 36 members 20
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that will contest in the elections; and we are targeting win at least ve seats,” she said. She said PSP prefers to ally with RPF to benet ben et fro from m its its sup suppor portt to to get get the desi desired red seats in parliament. “If we campaign independently, it will aect the party’s performance,” she said. Kanyange said that the party had already conducted its primaries from village to district levels to elect ag bearers, adding that the idea of forming a partnership with RPF was approved at the party’s May general assembly, where the nal list of contenders was also announced. Parliamentary elections are scheduled to kick o on Sept. 02, with Rwandans living abroad casting their ballots rst, and on September 03, the exercise will be carried out within the country.
Shared vision The Democratic Union of Rwandese People (UDPR) party, which is also seeking a coalition with RPF-Inkotanyi, says they have encouraged their members to vote for RPF in forthcoming Parliamentary elections whether RPF accepts the UDPR proposal or not.
Pierre Nizeyimana, the chairperson said UDPR and RPF already have “mutual collaboration”. He added that the party executive council has already communicated the decision to members. The youth party leader says UDPR supports Rwanda’s Seven-Year Development Programme spearheaded by RPF, and wants to contribute in its implementation process. “Based on RPF and its Chairman Paul Kagame’s vision to promote youth, we want to combine eorts in youth promotion since our party is dominated by young people… we want their active participation in national reconstruction eorts,” he added. The party has already named four ag bearer bea rers, s, two two men and two wom women. en. Cur Curren renttly, UDPR has one senator in parliament. The Labour Party of Rwanda (PSR) says it is also looking to partner with the ruling party in the forthcoming polls “because it has good societal projects and political programme which we want to support”. While conrming the move, PSR presipresi dent Jean Baptiste Rucibigango, an MP in the current parliament, said RPF’s political programme is “unquestionable and the
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party has helped contribute a lot to Rwanda’s socio-economic development; that is why we want to compliment them”. He added that campaigning under the RPF ag will help them secure more seats in parliament. Rucibigango revealed that RPF has promised them two seats. Another party seeking to ride on RPF’s back is Ideal Democratic Party (PDI) that has one seat in parliament, which they also got through a coalition with RPF, making their decision to continue in the marriage of convenience not surprising. In the 2017 presidential elections, all political parties, except Democratic Green Party, supported RPF’s candidate, Paul Kagame who won over about 99% of the total votes cast. RPF was cagy on the issue of numerous parties seeking to contest parliamentary elections under its ag, with the party’s Secretary General’s clerk saying that the details of election preparations would be announced during the general assembly scheduled this month.
We will go it alone As other small parties seek the backing of the ruling party, Centrist Democratic Party (PDC) is still on the fence, weighing their options, in the meantime. Party president, Agnes Mukabaranga, told this publication that preparations were going on well. “We are a political party, and we wish to be represented in Parliament,” she said. Currently, the party has two law makers, one in lower house and another one in the upper house. In 2013 Parliamentary elections, the party had joined RPF. The party chief, however, said they would announce their position at the party’s general assembly next week. There are 80 seats in the Lower Chamber that are up for grabs, 53 of which are for directly elected MPs belonging to dierent political organisations. A total of 24 seats are reserved for women representatives, who are elected through the National Women Council structures, while two seats are for youth representatives, and one goes to an MP for people living with disabilities.
Mobile money links Rwanda, Tanzania New cross-border mobile money hub enables international transfers By Stephen Nuwagira
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ocal traders doing business with w ith Tanzania Tanzania and other Rwandans can now conduct transactions with their business partners or relatives in the neighbouring country via mobile following unveiling of new cross-border money transfer service by MTN Rwanda on July 05. The mobile-to-mobile remiance service between betw een Rw Rwand andaa and and Tanz anzani aniaa will will als also o enab enable le the telecom’s Mobile Money subscribers to send money to Airtel Tanzania subscribers seamlessly through the MFS Africa Hub. The Hub connects mobile wallet customers across networks and countries in sub-Saharan Africa, enabling convenient and aordable mobile-to-mobile international money transfers. Already, MTN subscribers can conduct cross border bor der mob mobile ile mon money ey tra transfe nsfers rs to Ugan Uganda, da, Ken Kenya ya and Zambia. MTN chief business and corporate aairs ocer Chantal Kagame said the service brings the convenience of instant cross-border money transfers directly to customers’ mobile wallets. The mobile money service has deepened nancial inclusion among Rwandans, supports the push for a cashless economy, and will help to drive economic growth. “MTN Mobile Money services have improved the lives of customers, and also supported the developing Rwanda’s nancial infrastructure. The eciency of regional remiance will see customers transfer money easier, faster and more conveniently across borders at a fraction of current costs,” she said. The launch of regional remiance with w ith Airtel Tanzania Tanz ania follows the recent reduction of MTN MoMo taris by up to 80%. Customers can
now send small amounts of money, even below Rwf100, with transfer fees that start from as low as Rwf3. Tigo (now Airtel Tigo) pioneered cross-border mobile money transfer services over four years ago, when it launched the service between Tigo Rwanda and Tigo Ta Tanzania nzania in 2014. Airtel provides similar services across all its operations in Africa. Over Rwf3,385 million was pushed through cross-border mobile nancial services between January and December 2017, central bank gures show, and the service is one of the areas telecoms are targeting to drive growth and expand their footprint.
How it works
The MTN Mobile Money ecosystem has expanded extensively, enabling users to pay for moto taxi fares in partnership with Yegomoto; and sele parking fees in partnership with Kigali VetVeterans Cooperative Society. Kagame added that the rm has also partnered with local banks to facilitate push & pull services between betw een na nanci ncial al ins instit tituti utions ons and cus custom tomers’ ers’ mobile wallets. “We are now registering about Rwf130 billion in monthly transactions and we continue to lead Mobile Money in Rwanda with 1.7 million active subscribers,” she said. To send money to Airtel Tanzania, Tanzania, MTN Rwanda customers will be required to dial *830# from their handsets and follow the prompts, where they will also view the equivalent amount to send based on prevailing foreign exchange rates. They will then be prompted to approve the transaction with their MoMo personal identication number (PIN). Upon sending they will receive a conrmation message that the transac tion has gone through. July 13 - 19, 2018
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A solar powered grain drier at the agri expo last week. week.
STEPHEN NUWAGIRA.
Farmers ght climate change Annual show exposes what must be done to make agriculture protable By Elias Hakizimana and Stephen Nuwagira
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ugesera District, like other areas of the Eastern Province in Rwanda, experiences long and severe dry spells these daily because of climate change. But it is the home of Jean Pierre Hategekimana, a farmer – and he must survive. He grows maize, maize, vegetables, and beans. bea ns. Until recently, for Hategekimana and the other farmers in the Gashora sector, eking a living as a farmer has been a gamble; plant crops and the rain is plentiful and you will get a good harvest. Plant crops and there is a prolonged drought, and you lose everything. Last year, however, Hategekimana got something that has quickly proved to be a life saver - his mobile phone. With it, he now receives up-to-date weather forecasts and is able to properly plan when to plant. The weather updates are supported by the International Center for Tropical Agri22
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culture (CIAT), (CIAT), Meteo Rwanda, and the Rwanda Agriculture Agriculture Board (RAB) and are part of several interventions undertaken by the Rwanda government to improve agriculture production and value chains. Frank Rusanganwa, a senior weather forecaster at Meteo Rwanda, says when farmers can get weather information on their phones, it is like they have an “automatic weather station”. When farmers can predict the weather, it helps them safeguard against its eects. The weatherman says the initiative is currently covering less than 50 per cent of country, but would soon be rolled out serve the majority of farmers in all 30 districts of Rwanda. Such innovations aim at making agriculture more climate change resilient and sustainable to ensure food security and boost household earnings. Most of these were on show by farmers and experts who participated in the
recently-ended 13th Kigali Agriculture Expo at Mulindi show grounds in Gasabo District. The Agriculture and Animal Resources minister, Dr Geraldine Mukeshimana told the gathering that climate resilient strategies will be the bedrock on which the agriculture sector’s transformation will be built. She was speaking on the theme of the annual agri-show which was “Investing in innovation and agribusiness to transform agriculture”. The agriculture sector employs over 72% of the Rwanda population of more than 12 million people, especially in the rural areas. The sector has recorded major gains with more farmers adopting new innovations that have helped improve production and value chains, but a lot still needs to be done to make the sector more sustainable, more productive, commercialoriented, and protable. Solar-power irrigation technologies, and solar-powered grain driers, improved seeds, mechanisation, and irrigation and agro-processing technologies were all showcased. Farmers like Hategekimana were also on hand to narrate their success stories from using climate resilient approaches to reduce
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Iterambere potato pot ato varies t hat can weigh over 10kg per tuber. tuber.
the eects of climate change, ensuring sussus tainable crop and animal production, and food security, while improved value chains have supported market entry and made the sector more competitive. Hategekimana says the new practices have helped make his farming activities more sustainable and he now harvests 500kg of beans per a hectare compared to 200kg previously. Several innovators, including university students, exhibited farming tools like walking tractors, ploughs, and harvesters. Locally-fabricated farm implements like planters and sprayers were also showcased, raising hope of easing access to aordable equipequip ment to support growth of the sector. “These tools will enable farmers to increase acreage under crop production and boost boo st yiel yields,” ds,” sai said d Univ Univers ersity ity of Rw Rwand anda’s a’s College of Agriculture, Animal Science and Veterinary Medicine student, Sabrine Mpozwanagusenga. The Agriculture mechanisation university student showcased a seed planting machine she created. She said locally-fabricated small farm implements are instrumental in increasing crop yields.
Improved seed varieties
Nasson Twagiramungu, a banana grower in Nyamasheke district, showcased an improved banana variety locally known as “ingoromoko,” which was almost taller than him and weighs over 150kg. He was able to increase production, harvesting
STEPHEN NUWAGIRA
Twagiramungu grows high-yielding Ingoromoka banana variety.
about 30 bunches of bananas each month from his half hectare piece of land, which is ve times more yields compared to when one grows local banana breeds. A bunch of the “ingoromoko” banana variety costs Rwf20,000 each presently, and Twagiramungu Tw agiramungu says the variety has enabled many farmers to become food secure and also improve their household incomes. Jean Jea n Pier Pierre re Aho Ahomur muremyi emyi,, a pot potato ato researcher at RAB, says they have been able to develop varieties that are resistant to pests and diseases, and can also be used to make other products like biscuits, “mandazi” (dough nuts), wine and juice. Known by their Kinyarwanda names – “iterambere” and “gihingamukungu” improved varieties are bigger in size, with some potatoes weighing up to 10kg each, and a farmer can harvest about 20 tonnes per hectare. These varieties are more nutritious and take just four months to mature, Ahomuremyi explains. “It is important to continue innovating and developing new varieties, which are drought and disease resistant, to make the
sector more productive, sustainable and resilient,” says Ahomuremyi. Mpozwanagusenga says more should be don donee to to rev rev up inn innov ovati ation on in the sec sector tor and improve uptake of modern farming technologies. “People’s mind-sets also need to change for them to adopt these technologies,” she said. For Alphonsine Uwimbabazi, third year university student of Animal Production, aordability and lack of necessary infrastructure and facilities should also be addressed because they aect uptake of modern agriculture practices, like use of articial insemination. Raissa Akimana, agriculture specialist in Solar Irrigation Rwanda project, says use of new technologies like solar energy-powered irrigation equipment was supporting many farmers to reduce the impact of prolonged droughts that characterise the second part of the year in Rwanda. Irrigation plays a vital role in transforming farming and is one of the key solutions to the eects of climate change. July 13 - 19, 2018
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Liberation Day Kagame rallies Rwandans on unity, rebuilding country By Francis Byaruhanga
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wandans should continue working together as the country moves onto the next stage of liberation; one that will ensure beer social welfare for all citizens and achieve its transformation targets. “The liberation struggle was the starting point toward our economic development, which gave us the foundation on which we should build to realise the development aspirations of our country,” said President Paul Kagame while presiding over the 24th Liberation Day (Kwibohora24) celebrations at Rongi, Muhanga District in Southern Province on July 02. Kagame, who inaugurated the two model villages and the dierent facilities built by Rwanda Defense Forces (RDF) during the event, said continued collaboration and hard work are essential in the this phase of rebuilding Rwanda. “The struggle was successful majorly becaus bec ausee coll collabo aborat ration ion;; so so we we shou should ld continue this collaborative approach to improve the welfare of all Rwandans, as well as be able to continue rebuilding the country, including access to electricity by 24
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all citizens, aordable housing, and beer infrastructure,” he said. He added that liberation is about giving citizens their dignity, and urged the security forces, including police ocers, to “tighten their belts” and ensure the citizens and their properties are safe and secure. You must address cases of human tracking and insecurities that are rampant along border areas because we cannot speak of liberation without security, peace, and improved welfare of citizens, the president added. “You “Y ou have a right to access to electricity, water and other services provided by government; so you should hold us accountable and demand that we deliver; don’t pay anyone to give you these services or anything else because it’s our duty as leaders to serve you,” he added.
Don’t misuse facilities The president urged residents of the two model villages commissioned to use the houses and other facilities in the area appropriately, challenging them to work hard and ensure they aain sustainable development. Liberation would be meaningless,
according to the RDF, if citizens and survivors of 1994 genocide against the Tutsi continue to struggle to get basic needs, such as housing, or realising economic development. “Human security forms the basic foundation of national defense and stability,” said Minister of Defense James Kabarebe, “This forms the rationale for the defense intervention in various areas of human security that continue to pose threats to people and impede their advancement.”
Beneficiaries speak out Antonia Musabyimana, a mother of four and one of the beneciaries of the new homes, thanked president Kagame and the government for the support that “will improve our standards of living”. Musabyimana explained that her family used to live in a high risk area. “Floods would destroy my house during the rainy season and my children would struggle while trying to go to school during the rainy season,” she said. Rwanda is ranked globally as one of the safest places to live and also one of the best places for women to live, among others.
By Isaac Khisa
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hen the shilling slid against the dollar in March 2015, hiing a 10- year low, the drop was perceived as minor and the local currency would recover fast. Sadly, those who had this view were mistaken. Nearly four years down the lane, the shilling has lost approximately 13% of its value to Shs3, 880 against the popular United States dollar – the currency that many countries and companies use to participate in international trade and to borrow bor row.. The problem appears to be shared by the world’s emerging markets, making governments unable to plan ahead. Locally, this trend come at the time a section of government executives and the private sector players still argue that the current trend is aributed to consistently low value in the country’s exports compared with imports. But research by The Independent and Independent and the nancial experts paint a dierent picture. Statistics from the Bank of Uganda (BoU) show that the level of trade imbalance has remained relatively the same over the past four years but the local currency has ceded ground from Shs 2,860 in January 2015 to Shs3, 631 in January 2018. By press time (July 06), it was trading at approx.Shs3, 850 against the US dollar, according to Bank of Uganda. Meanwhile, statistics from BoU show that as at January 2015, the country imported goods worth US$510million compared with US$ 529million in January 2018. On the other hand, the value of exports stood at US$219.5million compared with US$337million during the same period under review. This presents a trade decit of US$290.5million in January 2015 and US$192million as at the end of January this year – representing a 52% drop. In terms of monthly imports, Uganda imported goods worth US$2,004million during the rst four months of the year to April 2015 while export values stood at US$910million. This represents a trade decit of US$1,084million. However, the country imported goods worth US$2,252million during the rst four months to April 2018 whereas the imports stood at US$1,180million, representing a trade decit of US$1,072million. Paul Emasu, a research analyst and operations manager at a brokerage rm, Crested Capital, told The Independent in Independent in an
Why shilling may not recover soon Cost of doing business b usiness likely to go up in line with the weakening local currency
Gideon Badagawa
Louis Kasekende
interview that the shilling has been under immense pressure in the recent past with most of it driven by the growing strength of the dollar against other currencies. “This also wasn’t helped by our frail balanc bal ancee of of payme payment nt pos positi ition on giv given en the fac factt that we are a heavy net importer,” he said.
America factor Suzan Khainza, a nancial advisor
working with the Kampala Serena Hotels re-echoes Emasu’s views. She said the US decision to raise interest rates has made foreign investors consider investing in the US due to high returns rather than take the risk in the emerging markets such as Africa. Last month, the US Federal Reserve raised short-term interest rates by a quarter of a percentage point, its second rate hike this year and the seventh since late 2015. The Fed decided to increase interest rates to encourage investors to continue to invest in the US economy and create jobs following recovery from the 2008 nancial crisis. The Fed said the US labor market has “continued to strengthen” and economic activity has been “rising at a solid rate” with household spending picking up and busine bus inesses sses in xe xed d inve investm stment ent gro growin wing g strongly. The Fed also said both overall ination and so-called core ination for items other than food and energy “have moved close to 2%” suggesting that Fed ocials are geing increasingly condent about ination reaching its 2% target. In its latest forecast, the Federal bank expected the U.S. economy to grow at 2.8% this year, a lile higher than 2.7% estimated in March. The U.S. unemployment rate is expected to drop to 3.6% by the end of the year, lower than 3.8% previously estimated. Fed executives envisioned four rate hikes this year, up from three estimated in March, according to the median forecast for the federal funds rate. Fed policy makers also pencilled three rate increases in 2019 and one in 2020. “This coupled with reduced r educed interest rates have made us (Uganda) less aractive for foreign investors to invest in our treasury bills and bonds,” she said adding “Kenya, with a more steady currency, is oering more aractive interest rates on short-term making Kenya a preferred destination.” Khainza said the dollar denominated July 13 - 19, 2018
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debt also has an impact as it increases the government’s need for dollars. The government has in the recent past acquired billions of shillings from external sources especially China to fund various development projects including roads, power dams and airports.
BoU’s view During the Annual General Meeting of the Uganda Institute of Banking and Financial Services (UIBFS) last month, Louis Kasekende, the deputy governor of BoU, said there are fundamental factors underpinning the depreciation of the shilling against the US dollar. “On the external front, the US dollar has strengthened in the international market and this is reected in the weakening, albeit with varying degrees, of currencies of most emerging market and developing economies,” he said. “On the domestic front, the balance of payments has weakened, reecting in part the strong import demand from manufacturing, energy, trade and commerce sectors.” However, he noted that some element of speculative trading has crept in, in the past few days accelerating the pace of depreciation of the exchange rate. He, however, said BoU has adequate reserve buers to support the currency whenever they deem the movements to be out of line with economic fundamentals. Gideon Badagawa, the executive director of the Private Sector Foundation Uganda told The Independent in Independent in an interview that the cost of doing business in the country is already going up as business struggles to cope with the weakened shilling against the dollar. “We buy our raw materials in dollars and therefore any decrease in the value of our local currency will lead to a rise in the cost of doing business and thus higher prices for nished products,” Badagawa said. Badagawa said it is time for businesses especially those involved in manufacturing to try out import substitution where possible to tame rising cost of production. Paul Lakuma, a research analyst at the macroeconomic department of the Makerere University based Economic Policy Research Centre told The Independent in an interview that the weakening shilling against the dollar is a wake-up call for the busine bus iness ss comm communi unity ty to pla plan n ahea ahead. d. “They (business community) need to buy and save a lot of dollars during lower low er prices for use during scarcity,” he said. He said companies also need to ensure that there is enough inventory of raw materials at all times to contain likely market shocks. 26
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NSSF backtracks on Uganda Clays debt By Isaac Khisa
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ational Social Security Fund (NSSF) does not intend to convert its debt in the Uganda Clays Limited into equity, according to its Managing Director, Richard Byarugaba. Byarugaba, who was speaking recently during the UCL’s Annual General Meeting in Kampala, said the pension fund is not interested in buying more shares in the clays manufacturing rm. “NSSF is not interested in converting its debt into equity in the UCL because you the shareholders will be diluted,” he said. “Acquiring more shares in the rm means that the pension fund will have more than 50% shareholdings in the company, placing it in a position of making majority decisions as management but we are not in clays manufacturing.” Byarugaba said the Fund, which currently owns a 32.5% stake in UCL, neither operates nor has expertise in operating clays manufacturing business, a situation that made the two entities search for new investors to inject cash into the business for growth.
Byarugaba said UCL needs at least Shs11bn to stir faster prot growth. This came amidst speculation that NSSF intends to convert its debt in UCL into equity. NSSF extended an Shs11billion loan to the company in 2010 to purchase machinery for increasing kiln output at Kamonkoli factory, located in the eastern part of the country, and purchase spares for the Kajjansi factory. However, the loan which aracted a 13-15% annual interest had swollen to Shs23.2billion. UCL’s Managing Director, George Inholo, said the rm hopes to return to protability once it gets a new capital injection. He said the company plans to optimise its Kamonkoli factory, now synonymous with losses, to widen its market in the eastern and northern region as well as venture into western Kenya. “We have also segmented the country into 5 territories. We have 17 selling points across the country and we have several innovations we are going to launch this year,” he said. Last year, UCL saw its net prot grow to Shs2.395bn compared with Shs2.375bn in 2016 and Shs1.207bn loss in 2015 citing increased aggressive marketing strategies
BUSINESS
Good year for banks Economy, stringent risk and loan management to dene 2018 performance By Isaac Khisa & Julius Businge
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ank of Uganda’s latest supervision report for 2017 is generally portraying banks as prot making when compared with the previous year. The report as usual, provides information on the BoU’s supervisory activities during the year, the reforms it has undertaken to the regulatory framework, an evaluation of the performance of the nancial system, and an assessment of risks to nancial stasta bility bil ity.. “During 2017, the performance of the bankin ban king g indu industr stry y in in Ugan Uganda da str strengt engthen hened, ed,”” BoU Governor, Prof. Emmanuel Emm anuel Tumusiime-Mutebile notes in the foreword of the 40-page report. According to the report, net aftertax prots more than doubled from Shs302.1billion for the year 2016 to Shs672.9billion for the year 2017 citing a reduction in the provision for bad debts. Return on equity (ROE) and return on assets (ROA) improved from 8.3% and 1.3% to 16.4% and 2.7% respectively, over the same period under review. However, six banks were loss-making last year, one less than the seven banks that registered losses for 2016 despite improved protability. The aggregate industry Non Performing Loans ratio (non-performing loans to total gross loans) improved from 10.5% as at December 2016 to 5.6% as at December 2017. NPLs dropped by 45.8% from UShs1.2trillion in December 2016 to
Shs652.1billion in December last year. In terms of currency, the report states that there was improvement in credit quality in the industry’s NPL ratio for both foreign currency loans and shilling denominated loans, from 12.6% and 8.8% respectively at end of December 2016, to 6.5% and 5% respectively at the end of December 2017. The agriculture sector (Shs158.2billion), and Trade and Commerce (Shs137.2billion) accounted for most of the banking industry NPLs. Notable also is that the proportion of NPLs aributed to the Real estate, BuildBuild ing and Construction sector decreased by Shs166.9 billion over the year ended. The share of total loans to total deposits, which averaged 74.2% in the four years to December 2016, reduced to 64.1% as at December 2017. In particular, banks constricted credit to the real estate and manufacturing sectors. However, the country’s total assets of the bankin ban king g sect sector or gre grew, w, in nom nomina inall term terms, s, by 12% from Shs23.7trillion to Shs26.5trillion during the same period under review. This was on account of a 204.1% increase in banks’ holdings of BOU securities, from Shs0.8 trillion in December 2016 to Shs2.5trillion in December 2017. Customer deposits grew by 12% to close at Shs18.2trillion during the same period under review, with shilling denominated deposits accounting for Shs11.6trilllion. Improved performance of the banking industry is most desired because of the importance it has on fuelling the economy
that is currently showing signs of recovery.
Bank branches Whereas there were 24 commercial banks as at the end of last year, the total number of branches declined from 570 in 2016 to 544 in 2017, and the total number of automated teller machines (ATMs) operated by commercial banks decreased from 860 to 821 during the same period under review. “This decline can be aributed to: the cloclo sure of Crane bank; and increased emphasis on electronic banking channels to provide nancial services, leading to the rationalisa rationalisa-tion of bank branches through mergers and closures,” the report says. Overall, the growth in bank loans and advances was subdued despite the easing of monetary policy during the year. In 2017, bank ban k cred credit it to the pri priva vate te sec sector tor inc increa reased sed by 1.5 1.5% % to to Shs1 Shs11.5 1.5 tri trilli llion, on, low lower er tha than n 6.1% 6.1% growth registered in 2016. The shilling denominated loans expanded by 8.3% in 2017 to Shs6.9 trillion, which was higher than the 7.5% growth registered in the previous year. However, foreign currency denominated loans fell by 7.1% in 2017, down from the 4.4% growth registered in 2016. Foreign currency denominated loans constituted 40.7% of total loans as at the end of December 2017, down from 44.4% as at end of December 2016. Banks continued to exercise caution in lending due to the high default rates suffered in 2016, even though 2017 registered signicant improvement in loan perforperformance. July 13 - 19, 2018
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Enter analysts Financial sector analysts that spoke to The Independent expressed mixed reactions about the sector’s performance and what they expect in 2018. “Going by the indicators the sector is headed in a good direction,” said Joseph Kibuuka, the head of investment banking at Crested Capital, a brokerage rm. Kibuuka said the banks learned lessons from the past years and have become more careful while selecting those to extend loans. Going forward, he said that if the economy (that was expected to grow at 5.8% in FY2017/18 – the highest in recent years), remains stable and steadily growing, it will boost performance of the sector this year. Similarly, Don Atwine, a banker working with FINCA Uganda said the 2017 performance was good but the sector still needed to do beer. “2018 is likely to be a beer year becaus bec ausee of of the the mom moment entum um gai gained ned las lastt year,” he said. Earlier, Stanbic Bank Chief Executive Ocer, Patrick Mweheire, said the bankbank ing industry was likely to experience tough times. “2018 is going to be a tough year, there’s no doubt. If you look at the yield curve…it is in the unchartered territory,” he told journalists as he announced his bank’s ban k’s na nanci ncial al per perfor forman mance ce at the She Sherraton Kampala Hotel on March 28. “Banks in this country have never had a Central Bank Rate of 9% (as it is at the moment). It is a good thing thing for the economy (as interest rates will drop) but it is very hard for banks to make money.” Mweheire said this year is also likely to be a challenging one and that banks will have to do something else to make money and grow their prots. The 2017 supervision report comes at a time Bank of Uganda (BoU) is cautioning commercial banks on tightening requirements for securing loans as they move to implement stricter provisioning standards required under the International Financial Reporting Standard 9 (IFRS9) that came into force last January. The BOU has issued a circular to banks regarding IFRS 9 and is evaluating the banks’ ban ks’ com compli plianc ancee with with the sta standa ndard rd as well as its likely impact on capital adequacy and credit growth ahead of issuing the nal guidance. Meanwhile, BoU expects the industry’s performance to improve this year as economic growth picks up and institutions [banks] clear the legacy of bad loans. The expected performance is pegged on the improving macroeconomic environment and accommodative monetary policy, which is expected to enhance the nancial position of households and corporations. 28
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One of the MTN service centres in Kampala.
Customers pull out of Mobile money New tax to hit business hard By Isaac Khisa & Julius Businge
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ganda’s latest Finscope survey shows that the adult population that has access to some form of nancial services from the formal and informal sectors has more than doubled to 78% since 2006 driven by mobile money. But the progress could soon be eroded with the introduction of tax on mobile money transfer services as government seeks to collect Shs114bn to nance the Shs 32 trillion budget bud get for the na nanci ncial al yea yearr 2018 2018/19 /19.. Albert Mucungizi, the chairperson of Information, Communication Technology Association of Uganda said in a statement that government’s recent move to impose a tax on mobile money transfer and social media will increase the cost of doing business and thus make the country a less aracarac tive destination for investment. “Additional charges added to Mobile Money in particular threaten the survival of innovative companies in the digital payments space, and make it more dicult for innovators to create new solutions within that ecosystem,” he said. “Companies and individuals engaged in
e-commerce and digital communications or otherwise conduct business, job searches among others, through social media may be negatively aected by a reduced local online audience,” he added. Mucunguzi said the new mobile money tax services will discourage people to revert to cash and the informal economy and decreases the ability of the government, busine bus inesses sses and ind indivi ividua duals ls to mon monito itorr and and account for economic activities. The government, which had initially imposed 1% tax on the value of mobile money transactions – transferring and withdrawals – in the new budget, slashed the tax by hal halff foll followi owing ng upro uproar ar fro from m the the pub public lic.. This tax is an addition of the already existing 10% exercise duty on costs incurred on mobile money withdrawals or money transfer charges. However, it maintained its stance on the Shs200 social media tax commonly known as over the top tax (OTT tax) daily, with the hope to generate about Shs.284bn. Julius Jul ius Muk Mukund unda, a, the exe execut cutiv ivee dire directo ctorr of Civil Society Budget Advocacy Group ( CSBAG) said there is need to drop the tax on mobile money arguing that 61% of MTN mobile
BUSINESS
money clients transfer less than Shs45, 000 and as such imposing a transaction value tax will negatively impact this section of the customers who use Mobile Money for basic survival. “Mobile money users still struggle nannan cially... e.g 64% do not have an emergency fund, 31% do not have enough food to eat, and 59% spend more than they earn, “he said. He said imposing the new tax will negatively aect the mobile money business and ultimately impact on the revenue collection potential (corporation tax) which telecom companies pay to government. In the neighbouring countries in the region, Kenya, which has experienced a faster growth in mobile money transfer services in the world, raised mobile money excise tax from 10% to 12% on withdrawal charges amidst protest from the telecoms that the move will hurt the poor most and undo most of the gains made in promoting a cashless economy. Unlike Uganda that simply decided to raise the tax without any specic plans pegged to the additional revenue to be collected, Kenya plans to use the funds realised from the levy to fund universal healthcare programme that aim to cover all households by 2022. Similarly, Kenya, like many other countries in the world does not impose tax on social media contrary to the blatant lie by Godfrey Mutabazi, the executive director of Uganda Communications Commission that many countries in the world impose tax to its citizens to access social media. This development comes as data from Bank of Uganda shows that mobile money transfer services recorded a 44% growth in the value of transactions to Shs63.1 trillion
as at the end of Dec. 2017 compared with the same period in the previous year due to increase in subscriber numbers. This is double the national budget for this nancial year and more than double the country’s Gross Domestic Product that now stands at US$27bn. The number of mobile money transactions also rose 23.8% to over 1.2billion during the same period under review. A section of mobile money agents that spoke to The Independent said the transactions have drastically reduced by more than half. “Even those who are coming to transact are merely withdrawing and not depositing becaus bec ausee of of the the tax taxes, es,”” John John Oko Okoth, th, an agen agentt at Arua Park, Kampala said. “To make the situation even worse, we also have to pay 10% withholding tax, up from 6% previously. All this implies that we cannot survive in this business.” He said a number of mobile money agents are now considering closing their busine bus iness ss in in sear search ch for opp opport ortuni unitie tiess citi citing ng low returns amidst surging rental costs. Responding to the uproar over the mobile money and social media tax, President Yoweri Yoweri Museveni, said there can be room to debate on the proposed 0.5% on mobile money transfer. “As to social-media tax, all the moral reasons are in favour of that tax,” he said. He said the social media users have no right to squander the dollars by endlessly donating money to foreign telephone companies through chaing or even lying. He said in 1991, tax collection to GDP stood at only 4% and these rose to 12% following the formation of Uganda Revenue Authority but it has stagnated for a long time. “Last nancial year it rose to 14.2%. In other countries in Europe, the tax to GDP ratio is 30% or more. The average tax to GDP ratio in Africa is 18%. Why is the tax to GDP ratio in Uganda so low?” he asked. He said the low revenue collection is aributed to the fact that telephone comcom panies have been under-declaring calls until recently when government acquired machines to monitor the telephone calls and other transactions. He said that many people who should be paying taxes on income from rent do not pay or underpay. In addition Museveni said absence of scanners on the borders and slowness in introducing electronic stamps to the goods imported from outside at the factory level was also a challenge.
Telecom executives speak Telecom rms said there was a drop in customer transactions but were yet to analyse the big picture. Sumin Namaganda, the communication manager at Airtel Uganda told The Independent that dent that their immediate observations are
that there is a drop in customer transactions and it is negatively impacting the mobile money business. She, however, told The Independent on Independent on July Jul y 06 06 that that it wa wass still still ear early ly day dayss to to pred predict ict what could happen to the business if the trend continued. She said they were continuing to monitor the trends along with the relevant stakeholders. Similarly Justina Ntabgoba, the senior manager for corporate aairs at MTN Uganda said the new mobile money tax was a threat to the business of the company and the agents. But she quickly told The Independent on July Jul y 05 05 that that it wa wass too too earl early y to to deter determin minee the the specics of the threat. She said they were monitoring the new developments of the mobile money and related taxes to be able to make detailed assessment of the impact on the business in two weeks’ time. Information Technology experts like Michael Niyitegeka have also weighed in. Niyitegeka told The Independent that Independent that the new taxes may not destroy but will signisigni cantly hinder the growth of IT spaces. “Simplistic as they may seem they are not progressive in nature,” he said. On the OTT tax, he said it is equally not progressive given the fact that internet penetration in this market is still on the low end. He suggested that the progressive approach would have been to have more people online, and then engage the OTT providers like Facebook to register locally so that they are able to le returns to Ugan da Revenue Authority. He said that over the last couple of years the growth rate of revenues from the telecom sector has been slow mode, and this could be aributed to a number of factors including internet charges still being high in addition to competition from amongst telecoms themselves. “…so grow numbers, encourage innovations, pay aention to digital content and digital skills,” he said. Going forward, Mucunguzi said they urge the government to ensure that all future laws and regulations related to Uganda’s ICT industry originate from a predictable, deliberate process that incorporates evidence-based research and public consultation. “The ICTAU is also engaging the ministry of ICT and National Guidance together with its agencies the UCC and NITA-U in order to push for a sectoral dialogue on this issue and await their response,” he said, adding that they envision an ICT sector that nurtures local innovation innovat ion and welcomes investment.
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Executive Style
More Ugandans seek jobs abroad What is your leadership style as CEO? am an inclusive person. I believ bel ievee that that eve everyb rybody ody at KHM is a leader. We win as a team. Our company operates with or without my presence otherwise if it was a one man’s company, then, it would have possibly collapsed owing to my frequent travels.
Ibrahim Bogere is the CEO of KHM International Consultants, a human resource frm that exports labour to the United Arab Emirates, Qatar and South Arabi Ar abia. a. He spoke to The Independent’s Isaac Khisa about the country’s labour export abroad.
I
What is your assessment of the level of Uganda’s labour export abroad? As a country, we have since 2015, exported over 70,000 workers to the Middle East alone with over US$2 million collected in remiances back home. This means that the num ber of peo people ple int intere erested sted to go and work abroad is very high owing to the high level of unemployment locally. We receive about 50 people each single day as KHM seeking opportunities abroad. Given the fact that we over 100 labour recruiting companies in the country is an indication that more and more people are interested to go work abroad. Which kind of labour do you export to these foreign markets? We recruit and send professional labour such as drivers, engineers, masons, administrators, marketing and sales, customer service, among others as well as semi skilled. Semiskilled here include domestic workers, security guards, drivers, and factory helpers. Which category aracts the highest number of applicants seeking to work abroad? At the moment, the semiskilled category such as security guards and drivers rank highest in terms of job application to work abroad. They only need basics in communication. 30
What is the criterion for selecting the applicants? We have a streamlined criterion for sending labour abroad based on the need of a prospective prospective employer. For instance, we look at the level of experience, education and medical tness. Our own set of human resource professionals carry out aptitude tests to ensure that people selected will indeed work once they reach abroad and not always think about home. We also carry out a pre-registration orientation where we interact with the prospective employee, know their expectations and inform them of our expectations. How can one get recruited with companies such as yours? For one to be recruited to go work abroad, he or she must be a Ugan Ugandan dan wit with h a Uga Uganda ndan n passport, must be medically t, good employment record if available, academic documents and able to communicate. The other is cost – we need to know who is going to meet the costs especially air fare to
July 13 - 19, 2018
the destination of the job. Currently, there are only two destinations where the applicant does not need to meet transportation costs that are Jordan and Saudi Arabia. However, these destinations cater for only domestic workers (house maids). How do you earn income from these services? Brokerage is accepted throughout the world. We normally charge a one-o moderate fee for our services that involves linking the prospective employee to the prospective employer. There are normally three charges – fare, service fee for an agent in Kampala and the service fee for the agent that is sourcing the employee for the employer abroad. How do you protect these workers while executing their duties? It is our obligation to keep monitoring persons recruited to work abroad as stipulated by the Min Minist istry ry of Gend Gender, er, Labour and Social Development until the contract expires.
We have a regional oce in Dubai that keeps on monitoring our workers and ensuring that everything is moving on smoothly such as working conditions and remuneration. We also have a regional monitoring oce in the Gulf spearheaded by the government of Uganda and under the guidance of UWERA (our umbrella organization) based in Riyadh, Saudi Arabia. How do you prepare local workers prior to taking up jobs? We normally have a pre-orientation registration where we take through prospective employees of various cultures of places they are going to be deployed. We also carry out a ve- day resiresi dential training and issue them with certicates before underunder taking work abroad. The other area involves veing these prospective employees by the security organs as well as seeking consent from the guardian or parent of that particular person. We also strive to ensure that the agent abroad is veed by the the Uga Uganda ndan n Emba Embassy ssy in those countries to ensure that they are licensed and meet all the requirements. In concluding a deal, the government also approves of and appends the signature on a given contract. Some challenges, if any, that the industry face? One of the major challenges facing our industry is human tracking. It is very dicult to identify legitimate entities that export labour abroad and individuals tracking people out of the country. For that, when an individual who was trafcked out of the country gets a problem, all the blame tends to go to the recruiting agencies, tainting its image.
BUSINESS
MANAGEMENT
AFC appoints new CEO
CSR
NBL plan to donate sanitary pads to 1,000 pupils annually
A
frica Finance Corporation, the infrastructure development nance institution in Africa announced the appointment of Samaila Zubairu as the Corporation’s 3rd President and Chief Executive Ocer, succeeding Andrew Alli who comes to the end of his tenor, having successfully served in the position since 2008. In a July 2 statement, the AFC said, Zubairu is a distinguished Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and an accomplished infrastructure development nance specialist with over 29 years of professional experience. He is the CEO of Africapital Management Limited, in which position he established a joint venture with Old Mutual’s African Infrastructure Investment Managers (AIIM) to develop the Nigerian Infrastructure Investment Fund1 (NIIF1) for infrastructure private equity across West Africa. He also recently coordinated the US$300 million acquisition of Eko Electricity Distribution Plc
NBL's Onapito-Ekomoloit NBL's Ona pito-Ekomoloit (2nd (2 nd R), others handing over sanitary pads.
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mployees of Uganda’s leading beer brewer bre wer,, Nile Nile Bre Brewer weries ies Lim Limite ited, d, plans to donate pads to at least 1,000 pupils annually, according to the company’s legal and corporate aairs direcdirec tor, Onapito Ekomoloit. Onapito, who was speaking during the handover of 300 pieces of So Sure reusable to Murchison Bay Primary School in Luzira,
CSR
BANKING
Coca-Cola rewards more soccer fans
A
s the World Cup competition neared the nals in Russia, interinter national beverage company, CocaCola promised to reward soccer fans with dierent goodies as one way of showing its support to the global tournament, it said in a notice. However, it did not state the actual amount set aside for the activity. The company was among the 2018 FIFA World Cup sponsors. It recently donated goodies to fans
and revelers at a popular hangout located in Lugogo, a few kilometers away from Kampala city centre. The company’s Brand Manager, Miriam Limo said the company has had a longstanding relationship with FIFA since 1976 and has been an ocial sponsor of the FIFA World Cup since 1978. Earlier this year, the two global bodies partnered to do the fourth FIFA World Cup Trophy Tour.
CSR
Muni Girls School crowned 2018 Stanbic champions
Stanbic Bank CEO Patrick Mweheire, handing over a solar system worth Shs20mn to Muni Girls. INDEPENDENT/JIMMY SIYA
M
uni Girls’ Secondary School from Arua in Northern Uganda emerged victorious in the third edition of the Stanbic National Schools Championship, following a highly competitive nale held in Kampala. The three other regional nalists who
a Kampala suburb, said the company’s interests is to ensure that pupils stay in school all times. “We as NBL are interested in ensuring that pupils remains in school during menstruation period. Our hope is provide at least 1,000 pupils with sanitary pads as we keep on increasing in the subsequent years,” he said. He said the sanitary support is to ensure that girls have a fair chance to play in life, as they develop into responsible citizens through education. This comes as the NBL marks seven years of providing 72 scholarship packages for secondary school education, through its Equity Scholarship programme, worth Shs 2bn. The company also provides scholarships at St. Mary’s College Lugazi to orphans of the 2010 World Cup terrorist twin bombings in Kampala.
made it to the grand nale included; Mengo Senior School, Nakanyonyi Senior Secondary School and Bweranyangi Girls’ Senior Secondary School. The nalists were tasked to create busibusi nesses, present their business plans and explain the sustainability of their business. Stanbic’s CSR Manager, Barbara Kasekende said, “the team from Muni Girls was outstanding throughout the competition and deserved to win.” The Bank’s Chief Executive, Patrick Mweheire said the lender believes that investing in education is a critical vehicle to fostering development in the country. Approximately, 6,000 students from 60 schools countrywide participated in this year’s Stanbic National Schools Competition.
CDC group to reduce its shareholdings in dfcu bank
C
DC Group has told DFCU Group, the parent of listed dfcu Bank, of its intentions to reduce its 15% stake in the Ugandan holding company which has major interests in nancial services and commercial real estate. The London-based rm is a development nance institution institution owned by the British government and has been a major equity partner of DFCU for ve decades. Irina Grigorenko, CDC Investment Director in-charge of Financial Institutions said they are “undertaking a review of its investment in DFCU Limited which may lead to the disposal or some of some or all of its shares in DFCU over the short to medium term.” “It is our aspiration to exit in a manner that causes minimum disruption to the business busi ness and ensure ensuress the orde orderly rly trad trading ing of DFCU’s shares,” she said. However, it remains unclear how this will aect the bank but CDC expressed hope that dfcu would continue to “succeed with the support of Arise B.V., its major shareholder.” Last year dfcu saw its net prot nearly triple to Shs127bn, up from Shs46.27bn in 2016 and Shs 37bn in 2015 amidst increase in Non-Performing Loans. July 13 - 19, 2018
31
BUSINESS
Uganda’s Mobile Money tran tr ansa sact ctio ions ns hi hits ts Sh Shs6 s63 3 tn By Isaac Khisa
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President Museveni Museveni (M) together with t he Director of Saachi Manufacturers Manufac turers Uganda Limited, Anand Nainani (L) and the State Ministe Ministerr for Finance in charge of investment, Evelyne Anite (R) with one of the Saachi st aff pose for a picture with some of the Products after a meeting at Sta te House Entebbe Entebbe on July 3.
Vincent Omoth (R), Marketing Manager Fresh Dairy pose for a photo with Fresh Dairy officials, and pupils of Kazo Mixed Primary School, Yogemu Primary School, Kirinya Catholic School and St. Thomas Bazadde Catholic School during the unveiling of the Fresh Dairy Yoghurt Cup Challenge held at Fresh Dairy offices on July 4. INDEPENDENT/JIMMY SIYA
elecoms mobile money transfer services have recorded a 44% growth in the value of transactions to Shs63.1 trillion as at the end of Dec 2017 compared with the same period in the previous year due to an increase in subscriber numbers. This is double the national budget for fo r this nancial nanci al year and more than half of the country’s Gross Domestic Product that now stands at US$27bilion. The Bank of Uganda’s Annual Supervision Report 2017 shows that the number of transactions also rose 23.8% to over Shs1.2billion during the same period under review. The number of registered customers across the networks increased by 8.4%, from 21.6 million as at December 2016 to 23.4 million as at December 2017, signalling the
Weekly share price movement (June 25) Security
June 25
BATU
30,000
30000
00
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155
160
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1,429
1,435
0.4
DFCU EABL
870 8,211
895 8,387
2.8 2.0
EBL
1,870
1,860
0.5
JHL
19,300
18,890
2.2
KA
437
362
20.7
KCB
1,851
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00
NMG
32
June 12
CENT
NIC
The Chairman of MTN Uganda, Charles Mbire addressing journalists on the attack of the company’s data centre in Kampala on July 09.
growing appetite for money mobile money transfer platforms. This development comes at the time the government is introducing a 1% levy on mobile money transfer aimed at raising more than Shs 115bn to fund the proposed Shs32 trillion budget bud get for thi thiss new n ew financial year. However, the report notes that there were incidents of operational risk in the mobile money payments, with several fraud cases reported, some of which were perpetrated by sta staff ff of the Mobi le Money network operators. “Therefore, this calls for proper internal controls at the MNOs to mitigate internally perpetuated fraud,” the report says in part. As at end-December 2017, there were seven mobile money service providers and include; MTN, Airtel, Uganda Telecom, Africell, M-Cash, EzeeMoney and Micropay.
17 3,606
18
5.5
3,778
4.5
NVL SBU
450 32
450 31
00 3.2
UCHM
55
62
11.3
UCL
21
25
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UMEME ALSI
300 --
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COMMENT
By Michael Niyitegeka
Employment in digital era Leverage ICT and online recruitment platforms to to get that dream job by standing out of the crowd
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ou have probably heard this before; the world’s biggest taxi rm, Uber owns no cars of their own and the world’s most popular media company, Facebook, does not create any content. Similarly, the world’s most valuable retailer, Alibaba, does not own any stock and the world’s largest provider of accommodation, Airbnb, does not own even a hotel room of its own. Back at home, we have seen the emergence of similar companies such as Jumia and Safe Boda, who transact huge volumes of business daily, but do not necessarily own the goods and services they deal in. Such is the technology revolution and it is happening everywhere; even in the world of employment- sooner than later, you will no longer need to carry physical CVs, CV s, late alone look for jobs. Jobs will be looking for you; but only if you position yourself right. In applying for jobs, just like in everything else, standing out of the crowd is very critical. So, if you have been applying for several jobs with almost no luck; and not even a reply, perhaps it because your resume is geing lost in the many other countless applications. This is because in reality, recruiters don’t have a lot of time to read through proles. Therefore, having your skills automatically matched to available jobs saves everyone’s time- yours and the employers, and increases chances of being found and hired. I have participated in a number of recruitment processes for a number of organisations and, I must say, one of my greatest frustrations is having to sift through several applications of candidates who do not and or seem not to even know what they were applying for. Many times you will call a candidate and they will mumble: “Did I apply? Which organisation is this? Which position did I apply for?” Having a couple of those responses is a pain. In others, you can clearly see there is something they are trying to submit but there is so much ambiguity which points to lack of preparation; the can-
didate has what the employer could be looking for, but when they are called to the interview, they cannot quite put their act together. But amidst this stack of confused candidates there is also quite a number of great people who have put their act together, but because of this frustration, sometimes, good candidates get caught up in this maze and lose the jobs of their dreams because of “recruiter burnout.” That’s why I have resorted to using online recruitment platforms like Fuzu and to help me deal with all the stress that comes with the recruitment process. This way I am able to meet with only those candidates that are as close to my requirements, due to the platform’s algorithms that help separate the ‘chu from the wheat’. I have used Fuzu for about two years now and I was, therefore, elated to know they opened up shop in Kampala. For the uninitiated, Fuzu (www.fuzu. com) a company that describes itself as a “platform that specialises in career development, recruitment and learning solutions” is kind of the LinkedIn of East Africa and more. However, this article is not exactly about Fuzu but rather about how to leverage technology to get found or rather let the right job to nd you. In today’s world, employers are increasingly turning to online solutions to hire and if you are in need of a job, a career change etc. it is about time you also turned to online to position yourself as that ultimate hirer. Unlike the typical job search processes which involves potential employees waiting on end for those scarce jobs to be advertised and then ood the potential employer with thousands of applications, most online recruitment platforms such as Fuzu, allow potential candidates to set up their own proles, which also double as CVs and then the available jobs are automatically matched to their qualications. Think of it as a small personal billboard in the online sphere that basically puts your CV out there to the world- opening up endless possibilities in not just
Uganda, but to the whole world. When suitable and or relevant jobs are posted, qualifying candidates receive noticanotica tions and decide whether they want to apply or not. Many times failure to get a desired job is not due to lack of experience but failure to get the brief right or selfpresentation and this needs to be emphasised in the school curriculum. Since today, it has become fashionable to have at least two social media accounts- Facebook, Twier, Instagram etc. I would like to urge everyone out there to add a third account that is perhaps more life-changing than social and that is a CV account- if that is what you want to call it. However, to fully appreciate and utilise the technology enabled platforms a certain level of digital competence is required. It is important that one has a certain level of understanding of how a given platform works, by just uploading the CV will not just deliver the job. ICT enabled platforms like these follow a given structure in proling you, and in many cases understanding the keywords that dene you is very important. Having those in your prole is very important. For platforms like Fuzu it is not the length of your CV that maers but rather what are the keywords that dene you and you can always aach your detailed CV. The same applies to the employers many have challenges in clearly stating what the job role entails or what aributes they are looking for in a candidate. For eective matching to happen it is therefore prudent that both entities ably dene themselves and digital skills play a critical role. In life, it is up to you to dene who you are and where you want to be, and you have to actively work on it. Michael Niyitegeka Niyitegeka is a Program ConsultantConsultant Applied ICT; Clarke International International University, Kampala.
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33
COMMENT
By Michael Meyer
Kenya’s perfect storm Development priorities are hard to reconcile with the realities of the rainy season potholes
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t’s the end of the rainy season in Kenya, and this year’s storms have been almost biblical, washing away not only people’s sunny disposition, but also their bridges, buses, bus es, live livesto stock, ck, and crop s. But the damage cannot be blamed on the weather alone. Roads have been hit especially hard; potholes the size of cars litter highways in the capital. Near the offices of the United Nations on Limuru Road, for example, traffic backs bac ks up f or a hal half-m f-m ile as vehi cles nudge into oncoming traffic to avoid one particularly large water-filled hole. Elsewhere, vehicles creep along slowly, bouncing from crater to crater, while the carless get tossed around in matatu minibuses as they travel to and from work. You might ask why the government doesn’t do something. After all, potholes are a basic and highly visible indicator of a country’s social and economic wellbeing. Good roads are an indicator of government effectiveness, while bad ones suggest incompetence. Any government seeking to retain the support of voters typically goes out of its way to make roads passable. Why not in Kenya? The reason is brute economics: the government cannot afford it. Consider the state of the Kenyan budget. Today, roughly half of all revenue goes to fund the inflated salaries and perks of government officials, including parliamentarians, governors, local and national bureaucrats, and endless legions of administrators. Another 40% goes to repaying interest on the country’s burgeoning international debt, which now exceeds half of Kenya’s annual GNP – a red flag for credit ratings agencies. Add to this the mysterious propensity for about a third of the national budget bud get sim ply to d isap pea pearr each e ach year, presumably into the pockets of venal politicians, and Kenya has the makings of a serious economic crisis that is fast coming to a head. The good news is that Kenya’s 34
July 13 - 19, 2018
weather-related chaos has coincided with renewed efforts to address administrative and budgetary roadblocks. For starters, President Uhuru Kenyatta recently announced a major anti-corruption drive that, unlike past efforts, is already producing results. Several senior government officials have been investigated and charged; some are already on trial, while others have lost their jobs and have been placed under house arrest. These are all firsts, and the reason is obvious: curbing theft by gove rnm rnment ent cro cronie niess is i s am ong the fastest and most effective ways to raise revenues. Of course, ending graft is also a good way to reassure lenders, and the timing of Kenya’s housecleaning is no accident. In September, officials from the International Monetary Fund will return to Nairobi to review Kenya’s financial performance – specifically, its eligibility for a $1.5 b illion standby credit facility. Kenyan officials are clearly worried, as the IMF has already put Kenya on its debt watch list and will almost certainly demand
Kenyan ofcials are clearly worried, as the IMF has already put Kenya on its debt watch list and will almost certainly demand further belt-tightening
further belt-tightening. At the very moment that Kenya needs to borrow more to bridge a yawning budget gap, its leaders are bumping up against the cold calculus of international finance. If we widen the lens further, Kenya, like the rest of Africa, is approaching a demographic tipping point that must also be addressed. According to Salih Booker and Ari Rickman of the US-based Center for International Policy, by 2035 Africa will have more young people in the job market than the rest of the world combined, and by 2050, one in every four humans will be Afri A frican can.. If suf fici ent emp loy loymen men t opportunities are created for this youth wave, the benefits to African economies will be profound. But if future generations are unable to find productive outlets for their skills, the social fallout could be severe. Kenya’s leaders understand this, which is why the government has made manufacturing, health care, education, and affordable housing top priorities in its Vision 2030 development program. But, as laudable as these targets are, the authorities’ ambitions are hard to reconcile with the realities of a Nairobi street during rainy season. Lurching along a rutted track that doubles as a m ajor urban avenue, Kenyans are all too aware that a pothole is not simply a pothole; it is a window into the deeper crises that Kenya, like much of Africa, has put off repairing for far too long. Mich ael Meye Meyer, r, a forme f orme r Ne wswe wsweek ek editor, is Dean of the Graduate School of Media Med ia a nd C ommun icat ications ions at Aga Ag a Khan K han University in Nairobi. Copyright: Project Syndicate, 2018.
COMMENT
By Maxwell Gomera and Edward Mabaya
The expanding killer farms Farmers expanding their areas of cultivation are destroying wildlife habitats at an alarming rate
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n April 3, the United Kingdom announced a ban on the sale of ivory that is “one of the toughest in the world.” By restricting the ivory trade, the UK joined other countries – including China and the United States in using market deterrents to discourage poaching and shield an endangered species from extinction. As British Environment Secretary Michael Gove put it in the announcement, the goal is to “protect elephants for future generations.” These are, to be sure, laudable gestures in the service of a noble goal. But ending ivory sales alone will not reverse declines in elephant populations. In fact, the biggest threat facing these and many other species is a far more ordinary human pursuit: farming. Throughout the developing world, farmers are expanding areas of cultivation in an endless quest for fertile soil. In the process, critical wildlife habitats are being destroyed at an alarming rate. According to the Food and Agriculture Organisation of the United Nations (FAO), if current trends hold, by 2050 the world’s arable land will increase by some 70 million hectares, and much of the new farmland will be on areas that are currently forested. The risk is greatest in South America and Sub-Saharan Africa, where population growth and food demand will hit tropical woodlands particularly hard. Poverty is at the root of this ecological crisis, but poor farming practices perpetuate the cycle of hunger and habitat loss. In Africa, for example, persistently low crop yields – often just 20% of global averages – are tied to low seed quality, the unavailability of fertilizers, and a lack of irrigation. As soil health declines and output drops, many farmers see no option but to look for new land to cultivate. Fortunately, there is a way to end this vicious cycle. Research shows that beerr farm ing p ractic bee ractices es and a nd te chnol chnology ogy can increase agricultural productivity while reducing habitat loss and
protecting wildlife. This approach, known as “sustainable intensication” aims to boost the output of existing farmland using techniques such as integrated crop management and advanced pest control. If applied widely, sustainable intensication could even reduce the total amount of land currently under cultivation. This is not an impossible goal. Over the last 25 years, farmers in more than 20 countries around the world improved food security while maintaining or increasing forest cover. According to one study, between 1965 and 2004, farmers in developing countries who planted high-quality seeds were able to reduce farmland by almost al most 30 million mi llion hect hectares ares – an area roughly the size of Italy. These gains could be extended further if smallholder farmers had access to modern equipment, beer data collection and analysis, and more nancing. Critics argue that increasing the productivity of smallholder farms could backre, especially if it encouraged poor farmers to expand their acreage in the hope of increasing
Poverty is at the root of this ecological crisis, but poor farming practices perpetuate the cycle of hunger and habitat loss
prots. To avoid this outcome, intensication strategies much be accompanied by strong conservation planning. At the same time, however, farmers in developing countries cannot simply be asked to stop using non-farm resources adjacent to their elds. Many people in poor communities rely on woodland products for fuel and construction materials, and government policies that prohibit use of these resources without oering adequate alternatives will likely fail. Rather, the ideal conservation approach in developing countries would link agricultural and economic support to strict limits on farmland expansion. That is far from being the case today. Around the world, billions of dollars are invested annually to address environmental degradation and poverty; many of the 17 UN Sustainable Development Goals are linked in some way to these two concerns. And yet, most programs designed to tackle these issues operate in isolation. This is a mistake: solutions to food insecurity and habitat loss must be be er in tegra tegrated ted if either ei ther chall challenge enge is ever to be solved. No one doubts that well-meaning policies like ivory bans can lessen the ecological impact of human activity. But, at the moment, farming – the activity most responsible for damaging the health of many species – is failing to aract the policymaking aention that it deserves. Until that changes government strategies to protect wildlife “for future generations” will very likely come up short. Maxwell Gomera, a 2018 Aspen New Voices fellow, is Director of the Biodiversity and Ecosystem Services Branch at the United Nations Environment Program. Edward Mabaya, a 2016 Aspen New Voices fellow, is a senior research associate at Cornell University. Copyright: Project Syndicate, 2018.
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Nabatanzi reads out prescriptions off a morphine bottle to a patient. Morphine is considered a wonder drug for people living with chronic pain
Is it time to rethink chronic pain treatment in Uganda? Experts warn of growing danger as patients buy strong drugs such as Tramadol over the counter and use them for mild pains By Flavia Nassaka
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shraf Ssebandeke is a sickle cell anemia carrier, which means that under normal circumstances, he should lead a normal pain free life. But, as he told The Independent, he has pain that never goes away and he has to depend on medication to keep it in check. 36
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“Doctors couldn’t understand my pain,” he says, “They said it was impossible to be a carrier and get crises. They rst suspected arthritis but I tested negative for it. Others said I am a sickler but all the more than 15 tests showed I am a carrier.” He is a rare case. And he says he has taken almost all the pain killers on the market until some ceased being eective, including
oral liquid morphine which is considered the miracle drug for people living with such debilitating pain. “I started with the likes of Tramadol, it didn’t work and then I was given morphine. It just intensied my pain,” he says as he narrates how his constant pains confused doctors into prescribing dozens and dozens of pain relievers for him.
HEALTH
Ssebandeke says the mere thought of geing another pain episode keeps him on guard. “I keep swallowing Brufen,” he says. Ssebandeke’s pain avoidance strategy shows that pain is not just physically challenging – it also takes an emotional toll. And, this is at the center of why Ugandans are abusing pain medications to the extent that such common pain medicines as Panadol and Aspirin are no longer eective for some people. When we spoke on July 05, Ssebandeke he had been to Nsambya hospital visiting a friend who was admied with intense pain. Ssebandeke explained that his friend was taking up to 10 tablets every day of Tramadol, a powerful opioid she had selfprescribed. The drug, doctors who prescribe it always warn, is very addictive. But Sse bandeke ban deke’s ’s fri friend end pos possib sibly ly did not kno know w that that and also missed out on a doctor’s advice. Soon, even the adult dose of two tablets a day stopped alleviating her pain and when she arrived at Nsambya Hospital, the doctors resolved to give her oral morphine after every two hours. Oral liquid morphine is also an opioid, but it is hea heavil vily y dilu diluted ted to red reduce uce its add addicictive contents. Many people living with chronic pain; especially those living with HIV, advanced stage cancer and recently sickle cell anemia have found solace in the drug for their pain. Its use is considered an innovative approach and has won Uganda and its innovator Dr. Ann Merriman praise as one of the countries that use cheap means to save people from dying in pain.
point he ever puts the drug on hold, his reply is clear. “I now can’t live without it. I take it four times every day,” he says. Instead of reducing, he has opted for the stronger Red label even though they recommend it after the basic version has failed. He only takes the green weaker strength when there is a stock out for his rst choice. Nabatanzi says people seeking pain relief are on an increase. From January to June, Jun e, she says says,, the the fac facili ility ty had reg regist istere ered d 156 new patients and yet every year they treat about 400 patients. Estimates by an American NGO; Treat the Pain Uganda, put the deaths due to pain in Uganda at a high 69, 000 annually. The rising trend is typical across the country. Up to 1800 people are treated with an opioid morphine annually. Experts in Uganda say they have heavily guarded against abuse of the drug and
‘Rethinking pain treatment’
Joseph Lukwago
Dr. Ann Merriman
Use of oral morphine Kitovu Mobile Medical Center in Masaka, is one of the facilities that has specialised in managing pain through use of oral morphine and Rose Nabantazi Mubiru who is its in-charge ocer says the drug – a mix ture of water and morphine powder comes in various categories based on strengths. If it is a green bole, then it is a basic drug and the red bole is the stronger version of the drug. It is recommended to be given in an interval of four hours. Nabatanzi says their goal in giving people morphine is not just to treat their pain but to also ensure that patients regain their wellbeing and joy. Because the medicine works to achieve this, she says when patients take it they feel they are cured of their underlying illnesses as it magically takes away the pain in just two to three days. She says hey tell patients to take the drug when experiencing pain and drop it when the pain is gone. However, this seems not what happens. Joseph Jos eph Luk Lukwa wago, go, a 73-y 73-year ear old Cat Cathol holic ic priest who has been baling advanced stage prostate cancer since 2016 is a typical patient of the facility. When asked at what
Zirimenya says, for some, the solutions are as simple as exercising. Yet people continue taking cocktails of pain relievers unnecessarily. He says the World Health Organisation (WHO) has provided guidelines for treating pain where one has to be assessed to see if their pain requires medicine or not and even when it requires medicine which class it should be. In 1986, the WHO developed a simple model for pain treatment called the analgesic ladder to guide doctors in prescription. The underlying principle, according to Zirimenya who doubles as Clinical Director at Hospice Africa Uganda the makers of oral morphine, was that analgesics should be use used d incr incremen emental tally, ly, sta starti rting ng wit with h nonnonopioids - the likes of Panadol, Panadol, progressing through mild drugs like Codeine, and nalnal ly strong opioids such as morphine, dosed in accordance with the patient’s reported pain intensity. The doctor says with advances in research, it has been realised that prescription drugs are not the only solution for people’s pain problems.
there should not be fear. The fear, according to them, should be abuse of other pain relievers whose use is not regulated. Dr Lodoviko Zirimenya, a clinician, says treatment of pain like any other illness should be after a review by the doctor. Unfortunately, many Ugandans in search of quick xes buy strong drugs such as Tramadol over the counter and use them for mild pains. Globally, death from prescription opioid overdose has quadrupled since 1999, according to the Centers for Disease Control and Prevention. From 2000 to 2015, more than half a million people died of drug overdoses and opioids account for the majority of those deaths. This seems to be mainly in America where an opioid epidemic has been declared. For Dr Zirimenya, pain treatment should have a goal. “Do you just want a quick x or you want to recover? That’s what you should ask yourself before taking that pain killer”. For back pain, for instance which is a major cause of disability - with global cases increasing by 54% between 1990 and 2015,
Techniques Techniqu es like acupuncture – alternative therapy used by the Chinese and chiropractic care are taking root in the country. The likes of Ssebandeke are already taking advantage. For his joint pains, pains, he tells the Independent, chiropractic services which he seeks twice every week have really helped. His chiropractor, Dr. Charles Sebwana, who also doubles as the in charge of the Chiropractic Unit at Mulago hospital says they manually treat several nueromusculoskeletal disorders – illnesses that aect muscles, joints and bones through; especially manipulation of the spine. Sebwana, who says most of the patients he sees have tried pain killers or are using them, adds that before handling a case, he rst establishes the source of one’s pain. For him, although people get pain because of underlying illnesses, pain is something whose risk of acquiring increases with age. Most of his patients are 40 years and above who report with back and spine problems but sometimes he gets those below bel ow 30 yea years rs old who whose se pai pains ns are cau caused sed by wea wearr and and tea tearr of of the the musc musculo uloskel skeleta etall system as result of lifting heavy weights and maintaining poor posture like those who sit in the same position at a computer every day and those who drive long distances. However, Zirimenya advises that instead of focusing on treatment and elimination of pain alone, experts should also strive to make patients understand their pain and manage it. This, for him, will not only change people’s preference for drugs even when they are not necessary but also change their mindsets into believing the fact that not all pains require medicines. July 13 - 19, 2018
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HEALTH
By Daniel C. Ntwari
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lice Mukamana, a student in Muhanga district, had a forceful sexual encounter with an older man when she was just 14-years old and she got pregnant. She decided to abort the pregnancy. Abortion is a crime in Rwanda and is punishable by law with up 20 years in jail. However, one can carry out legal abortion if the pregnancy is a result of rape, incest, and forced marriage, or if the pregnancy poses a threat to the mother and child. For this, the woman or girl must apply to a competent court of law to grant the right to abort and it requires a doctor to endorse it. But Mukamana’s case had a complication. As a minor, which in Rwanda covers anyone between the ages of 13-18 years; her case could not be described legally as rape, according to some interpretations. Her case is called delement; the act of having sex with a girl below majority age of 18 years. Mukamana went through the court process and was awarded the right to get an abortion. But by then it was already too late. She was already eight months pregnant. Under Rwanda law a legal abortion can only be done when the pregnancy is below 21 weeks or about ve months. Mukamana, a child herself, was forced to have a child due to the lengthy legal procedures. Alice Mukamana is not her real name but cases like hers come up whenever reproductive health and rights are discussed in Rwanda with civil society organisations pushing for decision-making moving away from the courts to the pregnant woman and her healthcare giver. According to Christopher Sengoga, a human rights ocer at Rwanda Health Development Initiative (HDI); a local health advocacy organization, Mukamana’s unwanted child could have been avoided if Mukamana accessed comprehensive sexual reproductive health, enabling her to make her own choices and is equipped to handle such eects. And her desire to abort could also have been handled dierently. “It shouldn’t be a taboo to talk about sexual reproductive education,” says Dr Aodis Kagaba, the co-founder and executive director of HDI Rwanda, “Having everyone equipped with all options available is the best way forward. If they choose to abstain or engage sexual activities, at least they have the knowledge and information to take right decisions.” Rwanda’s Demographic Health Survey (DHS) for 2015 indicates that complications due to unsafe abortions also contribute to maternal mortality in Rwanda. Statistics indicate that maternal deaths in Rwanda are a result 38
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`Give youth reproductive reproductiv e health services’ Civil society activists want more access to contraceptives, abortion rights
Patrick Kagaba speaking during the event.
FRANCIS BYARUHANGA.
of postpartum hemorrhage 29%, sepsis 17%, severe malaria 12%, eclampsia and abortion both at 9%. While maternal mortality had declined to 283 in 2015 compared to 750 in 2005, and estimated 300 to 400 women die annually due to complications related to unsafe abortion. About 1,700 are are treated for complications from induced abortions. “Why should we lose 210 women because of pregnancy complications? We have to nd measures to bring this number much lower,” Kagaba asked.
Call for action Now the activists are suggesting new measures to curb such deaths, including access to contraception by young people, comprehensive sexuality education for children youth, access to safe abortion services for women, decriminalization of sex work, review of the age of consent,
and access to stigma-free reproductive health services for adolescents. Women’s Link’s senior aorney, Lydia Muthiani, says Rwanda has made progre progress ss in health health but lack lack of access to adequate health services during the pregnancy; including abortion and delivery, “puts women at risk of blame and prosecution for infanticide.” On whether condoms should be allowed in schools, HDI says some schools have started realising the importance for students to have access to condoms, calling on more schools follow suit and also provide holistic training for teachers on sexual reproductive health education to avoid all dangers of unsafe sex like early pregnancy. “We have to address the issue of low access to contraceptives so that women can consistently use them; more sensitisation about reproductive health is also need especially among churches which own 40% of health facilities in Rwanda,” Kagaba says.
ART | BOOKS | SOCIETY | TRAVEL | CULTURE CULTURE
Behind `Coat of many colours’ Veteran artists Veteran ar tists ghts to preserve cultural heritages By Dominic Muwanguzi
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hen artist, Stephen Kasumba, designed a jacket jac ket in the nat nation ional al colours for Vice-President Edward Ssekandi and other NRM legislators during the inauguration of the 10th parliament in 2016, he became a focus of aention. Who is the designer behind this stripped blazer bla zer;; many many peo people ple aske asked. d. When his nam namee was revealed, many wondered how an artist who hitherto was lile-known came to design the “controversial” “controversial” aire. Not known to many, Kasumba has a long history of using his art to preserve cultural norms and forms. Therefore, making this aire was no accident for the modernist artist cum art lecturer who dominated the local art scene in the 1990s and the rst half of the 2000s. The black, yellow and red stripped blazer bla zer cam camee into into bei being ng aft after er the art artist ist had worked on a mural for the Germany International Aid organization, Bread of the World, which was celebrating its 50th anniversary. The mural symbolised the 50 years of the organisation’s activities and he was motivated to adopt a similar concept locally. He chose the medium of fabric because of his present occupation as an embroidery artist. The three colours of the national ag evoke Uganda’s diverse culcul -
tural heritage. Such composition echoes the common trait observed in his paintings to integrate African traditional motifs with cultural practices, as tool to preserve prese rve Africa’s iconography for future generations. Kasumba’s artworks have traditional motifs, such as African masks and sh, washed in a monochromic palee, instead of the bright coloured hues. More so, he will paint gothic - like creatures - like cannibals with sharp protruding teeth and long tails or horned human-beings to guragura -
tively communicate the message of Africa’s belief in the spi belief spirit ritual ual wor world ld of supe superna rnatutural beings. This is a rejoinder to George Lilanga’s (Tinga-tinga painting) style of painting that emphasized the deployment of such imagery (Msatani) in his art with a purpose to evoke the traditionalist belief in witchcraft. Nonetheless, such compositions remain a rarity, regardless of the generation of art and artists practicing because of the cultural prejudices that are perpetuated by the west and its concept of modernist art. Kasumba stands out as a bold artist who is never afraid to subject his art to harsh criticism, including that it “promotes satanic beliefs”. While his contemporaries played along to the tunes of western art patrons, his bravery dened his artistry. Some of his contemporaries wished him dead for “creating the coat of many colours” but he has never wavered in his craft. Stephen Kasumba, 57, is a former senior lecturer at Margaret Trowel School of Industrial and Fine Art. Presently he runs an embroidery unit in Wandegeya-Kubiri at the junction that joins Bwaise –Kawempe, Gayaza Road. July 13 - 19, 2018
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Man divorces wife over World Cup Big sporting events like the World Cup are supposed to bring people together in support of their favorite teams and players, but for one Russian couple married for 14 years, the 2018 World Cup was reason for divorce. 40-year-old Arsen and his 37-year-old wife, Ludmyla, are both big football
fans. In fact, they met in a Chelyabinsk sports bar during the 2002 World Cup, but their love for the two biggest rivals in modern foot balll hist bal history ory – Lion Lionel el Mess Messii and and Cristiano Ronaldo – ended their 14-year marriage. The wife, after Argentina’s disappointing debut at the 2018 World Cup, started
mocking Messi’s performance, and how he couldn’t play football. He was celebrating Messi’s goal, when his wife started mocking his idol again, and he just snapped. The very next day, Arsen went to the civil registry and led for divorce.
Woman pronounced Wife trouble trouble for World World Cup official The head of a Russian tall facades to pay tribute to his dead, found alive advertising agency tasked with wife, by using her as the model. creating large building facades Ivan Panteleev commissioned four inside morgue to promote the 2018 World Cup murals funded by the Moscow refrigerator in Russia has come under re for city budget, including that of wife. A South African woman was found alive and breathing inside a morgue refrigerator, despite paramedics pronouncing her dead. A worker discovered her after he went to check on the body bod y and and not notice iced d the the wom woman an was breathing, according to the BBC. She had been in a car crash that killed two others on June 24, with the ambulance company claiming she showed “no form of life,” Times Live reported. She was taken to hospital and is recovering. An investigation is underway as family members are demanding how such a crucial oversight could happen.
using one of the nearly 50-meter-
Wearing a tie might be limiting your thinking According to a new report published in `Neuroradiology’, wearing a tie might be limiting workers’ creative abilities. The scientists claim that wearing a tie squeezes the neck veins and limits the blood ow, potentially slowing down the brain’ bra in’ss proce processin ssing g and limiting your thinking skills. They scanned the brains of 30 40
healthy young men, 15 of whom were instructed to wear comfortable open collared shirts, and the other 15 who were asked to wear ties in a Windsor knot, tightened to a point of slight discomfort. They found that the group wearing ties had 7.5% less blood blo od ow to their brain. Whoa. Now you know. July 13 - 19, 2018
Some people didn’t like that.
Iran accuses Israel of stealing its rain Israel has been stealing Iran’s clouds while also working to ensure that whatever clouds do make it into Iranian air space are unable to release rain. Brigadier General Gholam Reza Jalali, head of Iran’s Civil Defense Organisation, recently revealed that to journalists.Relations betwee bet ween n Iran Iran and Israel have always been bee n tense tense,, but but I doub doubtt anyone imagined one side would go as far as to accuse the other of stealing their clouds. Gen. Jalali was explaining his country’s prolonged drought. Jalali Jal ali tri tried ed to bac back k up up his claims by citing a survey showing that all mountainous areas above 2,200 meters betwee bet ween n Afgh Afghani anista stan n and the Mediterranean are covered in snow, except those in Iran.
Woman dumps boyfriend over cheap car They met at a party and whe n he offered to drop her at home in his Porsche Cayenne, she was wowed. A Porsche Cayenne costs about US$220,000 (Approx. Shs840 million), so she figured he was rich. Even when they went on dates in cheap restaurants and he wore cheap clothes, she thought he was rich but humble – which made her like him even more. Trouble erupted when she uploaded a video of the Porsche Cayenne and, while some congratulated her on her catch, one friend wrote “That car is not Porsche Cayenne!” It was a Zotye, a Chinese copy of the Porsche Cayenne, costing around US$18,000 (Shs70 million). She ditched him and wrote: You are a disgusting man. I must have been bee n blin b lind d to have ever love d you,” y ou,”
and warned other women about “Fake Porsche Dudes”. But she got some negative feedback. What happened to all those feelings she had developed for him?
Michelin calls for worn tyre testing If Michelin is right then the world could be about to change the way it looks at tyres By Paul Gover
M
ichelin wants buyers to use braking brakin g perfo performa rmance nce wit with h worn tyres on a wet road — not dry-road grip on a new tyre — as their primary consideration for rub ber cho choice ice.. It’s It’s als also o keen keen to see rea real-w l-worl orld d testing of tyres, in a similar style to NCAP crash tests and Europe’s new WLPT fuel consumption tests, to give consumers a better chance of choosing the safest rubber for their vehicles. “The problem is that all testing is now done with new tyres. We need testing with worn tyres,” says Cyrille Roget of Michelin. “The only time a tyre is new is when it is on the shelf. After that it is always worn to some degree.” Not surprisingly, Michelin has a vested interest in a new scoring system and Roget; the company’s worldwide director of scientic and innovation communication, is pushing the message. It is about to launch its new Primacy 4 tyre after extensive research and development that’s reected in the slogan ‘Safe when new, safe when worn’. It’s a point Michelin proves during a press preview in Thailand, where the Primacy 4 comprehensively outscores rivals from Dunlop and Bridgestone during wetweather braking exercises, which are the toughest challenge for any heavily-worn tyres. In an 80km/h panic stop on a soaked road, a heavily-worn Michelin even outscores brand-new tyres from one of its rivals. But there is no real chance to test the other claims for the Primacy 4, which include more comfort and less road noise. We do get a chance to speed around a motorkhana in a Mercedes-Benz wearing the Primacy 4, and about 5km in a Toyota Camry — including a 200-metre ‘comfort test’ — but there is zero chance for a realistic assessment of the tyre. The Primary 4 is a mid-level tyre in the Michelin range — not nearly as grippy as its headliner Pilot Cup Sport 2, but intended for regular family cars and oering mileage in the 40,000-50,000km range. But it has a stronger focus on safety and particularly wet braking, which Michelin
research shows is a signicant worry for owners who — it says — can feel the dier ence well before the tyre is worn down to the legal limit. “A lot of people pe ople have anxiety about the safety of used tyres. As soon as you start to drive the tyre performance changes. A lile bit at the sta start, rt, the then n fast faster er and fast faster, er,”” says says Roget. But there are a couple of advantages to worn tyres. “When worn, grip will improve on a dry road. This is like a racing tyre. “When worn, the fuel consumption also improves. improv es. One tank of ve is consumed by the tyres because they are generating heat. There is less heat in a worn tyre from the tread.”Michelin spends more than $1 billion a year in research and development by around 6000 technical experts. It has 11,700 active patents and led for 416 in 2017 alone. It says its ‘innovation’ program now covers everything from replacing oil in tyres with wood and futuristic 3D-printing of tyre treads to cut environmental impact and improve safety. “We need to think about the future. Tyres should be designed to perform well throughout the useful life,” says Roget. Improving worntyre performance, so that people can get closer to the 1.6mm safety level than the 3mm level where most people currently replace their tyres, could save 35 million tonnes of CO2 a year, says Michelin. “That’s enough to run New York City for six months. It’s a big city,” says Roget. The research that resulted in the Primacy 4 included everything from beer silica
bonding bondin g in in the the rub rubber ber to an imp improv roved ed tread design, which protects the piping and grooves that remove water, as well as slightly beer wear and quietness. It talks about ‘Evergrip’ technology that boosts boo sts the pum pumpin ping g of of wate waterr by by 50 50 per per cen centt when worn, compared to a worn Primacy 3. Testing was originally focussed on Europe but now includes China and Thailand, using cars including the Camry and Honda Accord, including comparative testing with other Tier 1 and Tier 2 brands — which Michelin does not conrm ocially but inc includ ludee Brid Bridgest gestone one,, Dunl Dunlop, op, Han Hankoo kook k and Goodyear. Michelin is chasing original-equipment contracts for the Primacy 4 but is currently focused on the aftermarket with plans to sell the tyre in more than 170 countries with an extensive advertising program that focuses both on the tyre’s wet strengths and the concerns of ordinary drivers. “Michelin starts a discussion around the worn-tyre performance. We think it is important, as an industry,” says Roget. Source: motoring.com
July 13 - 19, 2018
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Prole
Freddie David Egesa: The private crime investigator By Agnes E Nantaba
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rivate investigation remains scarcely known to majority Ugandans not because there are no private investigators but rather due to the thinking that it is the job of the government security agencies. But this is a job that Fred Egesa has done for the last 24 years and he is still going. He has kept at his childhood dream of pursuing justice. “I have done many cases where I am not paid because I love to pursue justice,” he says adding that lile was known about private investigation until he hit the biggest case of the time - the murder of Warren Bantariza in 1994. Egesa says he picked the trait from his mother, Jane Nansubuga, who was always pursuing justice. “She was very kind and went into the details of a case to seek justice and would only punish after conrming the crime and the criminal.” “I look at investigation as a way of learning and the search for answers to many puzzles and questions,” he says. He has investigated several cases; including one where government was alleged to have a hand in the murder of then Bukomansimbi District Woman MP, Susan Namaganda in 2015, until the murderer was arrested in Ssese Islands. But even with the more than two decades in practice, Egesa maintains that the world is too big for private investigation thus the need for more; especially in Uganda. And to him many cases are handled by learners on the job while others are unaended; which creates a backlog. Unlike before, in Uganda today there is a statute under the Private Security Organisation’s Act under the police which guides the work of people like Egesa. And with this in place, other people have also joined in private investigation. His work leans more into investigating government ocials and undoing cases like frame-ups done by police. He says he saved a man who was falsely accused of killing his own father and had been indicted for trial. Egesa’s journey dates back to as far as 1981 when he joined the police under an intelligence ocers’ programme during Obote II government. It was a special government course that took only about 20 trainees. Two years later, Obote’s government was shaken by power struggles and, 42
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Egesa says, he realised that although he had trained so much, he would not be able deliver any form of justice in the circumstances. In 1994, he registered and applied for guns, recruited ex-service men from the army and the police under Missing Link Investigators and business started. Egesa cites some of the challenges along the way including clashing with security organisations like the Internal Security Organisation. “The army and other security organisations thought they were monopolies in investigation work but were forced to feel our presence,” Egesa says, “We were fairly read so at times, they would request to look through our les.” Egesa says private investigation should be considered as supplementary investigation. As a career, it can be an avenue for exservice men. “They are very knowledgeable and want to survive so they must be handled carefully becaus bec ausee some some may eve even n star startt advising criminals,” he says. It was not only opposition from government security organizations but family as well. Egesa’s
father, George Wilson Egesa Ogoola, tried to stop him for fear that he would be killed for taking on something that involves nosing in people’s lives. Egesa followed his passion and as he prospered, he says he once employed his father to manage the accounts of the company having been a business man and a strong pillar in business. Egesa says he has gone through trainings and is a qualied Investigative Specialist. He went to Najjanankumbi Seventh Day Adventist, Kitante Secondary school, and Light College Katikamu Light Secondary School. He is a middle child among the 13 children, was born bor n and and rai raised sed in Kampala although he is a Samia Mugwe from Busitema. He has been married for more than three decades with children. He envisions retiring after establishing a College for private investigation to o load his knowledge and experience to the young people.
Q&A Q& A
ADVERTORIAL
Freddie Egesa’s Liteside Any three things that we don’t know about you? am a Pentecostal who accepted the Lord Jesus Christ as my savior at only 11 years. Although some people claim that it contradicts my profession, they should know that the best spie spiess were wer e Jos hua and a nd Caleb in the Bible because they always had a proper assessment and right reports. Intelligence is about proper analytical assessment and drawing conclusions. I am also the author of books like ‘Satan is a liar’ and ‘The holy spirit our friend’ because becau se the t he Holy Ho ly Spirit S pirit has really given me a boost of wisdom.
I
What is your idea of perfect happiness? I wish I could have more children because I love carrying them and they give me a lot of consolation. They are genuine souls and most times innocent. It is a trait that I pick from my mother. What is your greatest fear? I am a simple but brave person. There is no amount of threat that can push me o an issue that I am passionate about. What is the trait you most deplore in yourself? I am too good and soft; ordinarily, people think that they can drive me around or take advantage of me. What is the trait you most deplore in others? Unfairness; fairness is the basis for doing d oing what you would wish others to do to you. Which living person do you most admire? I have respect for John Nagenda; he says what he thinks and never bends to
survive, What is your greatest extravagance? I have so many les and cases of poor people who are unable to aord justice. What is the greatest thing you have ever done? Writing the book ‘The holy Spirit our friend’. I believe belie ve that th at I gave it i t my all and tore my life.
of the president, powers and love of all Ugandans but betrayed betra yed it i t all. The sign signals als of what he did to this country are only vibrating. What is the quality you most like in a woman? Being half woman. What is the quality you most like in a man? Responsibility, fairness and truthfulness.
What is your current state of mind? I am at peace.
What or who is the greatest love of your life? My children.
What do you consider the most overrated virtue? The urge to always hear new things and eventually lies come in handy. We are not very analytical because we want to feed on new stu everyday.
When and where were you happiest? In 1971, when I met Rev. John who prayed for me because I had been a sickly child spiritually and physically. In 1974, when my father was released from prison and in 1987 when I married because I was the smallest among the 11 couples of the day.
What does being powerful mean to you? Having a positive inuence on your people without being deceptive. It’s also being able to recognise the problems of your people and them knowing that you can oer genuine help. On what occasion do you lie? Investigatively, if you are probing a maer, you can frame up or window dress to captivate the mind of suspected criminals. There are times we lie out of respect but not to take advantage of others. What do you most dislike about your appearance? I am a fairly presentable person. Which living person do you most despise? Gen Kale Kayihura got what all of us may never get; the aention and trust
Which talent would you most like to have? I love singing even when I am not very good at it. I also love reading and writing. Where would you most like to live? I have all chances of leaving Uganda but I have children to guide and they need me. What is your most treasured possession? I treasure everything that I have worked for and remember how I acquired each one of them. What do you regard as the lowest depth of misery? Detaining innocent people deprives them of what they are entitled to. Such individuals die every day just from the t hough houghtt of
being bein g inn ocent ocent.. What is your favorite occupation? I am living my childhood dream of being an investigator. I feel good when people come to me and have their cases dealt with. What do you most value in your friends? I only have acquaintances because beca use if i f I have h ave a frien d, I want to always live their life. Who are your favorite writers? I read mostly on security and intelligence which have no specic writers. Which historical fgure do you most identify with? Pinto Emmanuel lived in his own shadow. I love Gandhi’s nonaggressiveness yet empathic way. He could drive the nail home in the simplest of all means and was even sympathetic to his detractors. Who are your heroes in real life? Mahatma Gandhi, Martin Luther King, and Pinto Emmanuel What is your greatest regret? I regret the day I arrested a wrong person. I had just started investigation and out of inexperience, I got him detained. Although he was released and we eventually became beca me friend f riends, s, I still regre t it. How would you like to die? I don’t want a long illness. What is your moo? Fairness is Godliness.
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GLOBAL COMMENT
By Koichi Hamada
Retaining benets of globalisation Today’s globalised world is far from perfect, but protectionism and isolationism will worsen things
I
n the last few years, for many people and their leaders, globalisation has become a scourge to be purged in favour of greater protectionism and unilateralism. This represents a sharp departure from the recent past when globalisation was widely regarded as a positive force. What changed, and why? Key components of globalisation include greater cross-border mobility of goods, labour, and capital, each of which promises signicant overall benets for economies. Free trade enables countries to capitalise on their the ir comparative advantages, boosting all participants’ economic performance and prospects. Migration can inject diversity and dynamism into, say, an aging society, while helping to reduce poverty in source countries, such as through remiances. And foreign direct investment (FDI) can create employment, spur research and development, generate tax revenues, and enhance competition. The problem is that these benets are not necessarily broadly shared. For example, migration can put wage pressure on lower-skill workers in destination countries. By enabling companies to move operations to lower-wage markets, the elimination of trade barriers can have a similar eect. Even cross-border investinvest ment has its downsides, as domestic players may struggle to compete with foreigners. Such factors have contributed to rising inequality in many countries. In the United States, for example, lower-skill workers in the Rust Belt – the manufacturing region stretching from Michigan to eastern Pennsylvania – have faced decades of stagnant wages, while highskill workers in nance and technology – Wall Street and Silicon Valley – have enjoyed soaring compensation. While economic openness boosts economies as a whole, there is an obvious need to ensure that the benets are more equi tably distributed or, at least, that some groups are not inordinately hurt by it. Many economists argue that the key to success on this front is to adopt redistributive policies, typically via the tax system. But such policies are very dicult, if not impossible, politically. That lesson has been learned by many 44
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a progressive politician, including US Senator Bernie Sanders, who tried and failed to secure the Democratic nomination for the 2016 US presidential election on a platform that focused on addressing people’s frustrations with the increasingly unequal status quo, largely through redistribution. More politically eective, but eco nomically and socially damaging, is the approach of populists like U.S. President Donald Trump, who oer simsim plistic explanations that play on voters’ fears and frustrations (for example, by blaming immigrants or countries with trade surpluses) while pretending that there are easy xes (say, erecting walls and import barriers). Trump blamed the struggles of Rust Belt workers on international competition. But that is only part of the story: technological displacement has played a larger role, though this has often been ignored, not least because it is harder to demonise. Meanwhile, the Trump administration has pursued extreme and morally unconscionable anti-immigration policies, such as the recently reversed policy of separating migrant children from their families at the southern border with Mexico.
The problem is that these benets are not necessarily broadly shared. For example, migration can put wage pressure on lower-skill workers in destination countries
Similarly, in many European countries, the backlash against globalisation has translated into virulent opposition to migration, not to mention increased resistance to European integration. Voters in Austria, Hungary, and Italy have elected politicians who campaigned explicitly against immigration. In the United Kingdom, the 2016 Brexit referendum partly reected a rejection of the free movement of people within the European Union. By encouraging unilateralism, and to some extent even authoritarianism, the backlash against globalisation threatens not only to prevent countries from reaping the economic benets of openopenness, but also to undermine the structures of international cooperation that have supported nearly three-quarters of a century of relative peace since World War II. Reversing this trend will require, of course, the unequivocal rejection of policies that out democratic values and repudiation of the leaders who advocate and implement them. But it will also demand eorts to address globalisation’s real negative eects – beginning with an excessively unequal income distribution. Here, measures like a carbon price or a “Tobin tax” on international nancial transactions could help. In my country, Japan, Prime Minister Shinzo Abe’s administration may need to consider direct wage hikes. Today’s globalised world is far from perfect. But protectionist and isolationist policies will only make things worse, especially if they are used as an excuse to deny basic human rights to immigrants, among others. Balanced policies aimed at reaping the benets of openness – and ensuring that those benets are broadly shared – may not be the most politically expedient option today; but they would do economies and societies a lot of good tomorrow. Koichi Hamada is Professor Emeritus at Yale University and a special adviser to Japanese Prime Minister Shinzo Abe. Copyright: Project Syndicate, 2018.
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