News analysis Health Business

US$78 billion regional Expired drugs; Stanbic seeks to become lebrating

infrastructure projects who is to blame? Bank Holding Company Ce

Issue No. 510 March 02 - 08, 2018 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Years

Kasaija, Muhakanizi
in tight corner
Finance under attack over fresh
borrowing, faces tough IMF

www.independent.co.ug
INBOX

Issue No. 510 March 02 - 08, 2018

The Week The Last Word Analysis Business Arts &

Culture
4|Judiciary signs Why 14|Opting out of 24|Stanbic Bank
MOU to set up A-Level: Uganda seeks to
Shs1.5b e - court
Ugandans feel More students are become a Bank
35|Lecturers
step out of the
case management poor: joining technical Holding Company:
comfort zone
system The irony institutions, many The new move
after 22 years
more might be will see the lender
is that as simply falling off venture into non-
4|Kayihura gags economic banking business
officials from sharing
intelligence
growth picks
speed and 16|Big projects in 25|Inside the SGS 37|Toyoto
people get pipeline, no money: contract saga: Corolla set for
better off, 19th ordinary The government new 126kW
4|Alarm as is yet to decide engine
Cholera breaks
they also feel summit of the EAC
on whether or
in Kampala opens
out in Refugee poorer not to terminate
up opportunities
camp the motor vehicle
but implementation
inspection deal
delays persist

STRATEGY & EDITORIAL DIRECTOR: Andrew M. Mwenda
MANAGING EDITOR: Joseph Were
INVESTIGATIONS EDITOR: Haggai Matsiko
BUSINESS EDITOR: Isaac Khisa
PHOTOGRAPHER: Jimmy Siya
WRITERS:Ronald Musoke, Flavia Nassaka, Ian Katusiime,
Agnes Nantaba, Agather Atuhaire, Julius Businge.
DESIGN/LAYOUT: Sarah Ngororano, Harriet Jamwa.

PUBLISHER: Independent Publications Limited, Plot 82/84, Kanjokya Street, P. O. Box 3304, Kampala, Uganda
Tel: +256-312-637-391/ 2/ 3/ 4 | Fax: +256-312-637-396 E-mail: editor@independent.co.ug | advertising@independent.co.ug
circulation@independent.co.ug | Website: www.independent.co.ug

2 March 02 - 08, 2018

 Offline

Presidents; Yoweri
Museveni and Uhuru
Kenyatta shake hands
after commissioning the
Busia One Stop Border
Post on Feb. 24.

“I hear some bit of fraternal quarrel

between Gen Tumukunde and Gen
Kayihura. Unfortunately they put it in the
open. I had differences with my brother
Amama Mbabazi, the former Prime
Minister and NRM Secretary General but
for us we were civilised.” Kahinda Otafiire,
Minister for Justice and Constitutional Affairs

The best A-Level

students of Light
Secondary and
Vocation School
Bulenga jubilate
after receiving
their UACE
results which
were released
by UNEB on Feb. “The secretary general is a good
21.   INDEPENDENT/ mobiliser who knows how to dance
JIMMY SIYA when she is canvassing for votes, but
she is not an administrator.” Tanga Odoi,
NRM Electoral Committee Chairperson on
Lumumba’s restructuring of NRM secretariat

Grounded vehicles at Kibuku

district head quarters. The
district is one of those
dealing with the problem
of vehicle maintenance.  
INDEPENDENT/JIMMY SIYA

“There are people here who are talking

about democracy and transparency
but I do not believe them. Do not
accept what they are saying; if they
are oppressors, they are the most
oppressors.” President Salva Kiir of South
Sudan raps the US over sanctions on his
country

8 19 Shs3trillion
Firms being probed by MPs Teachers in Mbarara Money Uganda
over accountability of Shs4bn who face punishment loses to traffic jam
for agricultural inputs over excessive drinking annually

March 02 - 08, 2018 3

week

Judiciary signs MOU to set up Shs1.5b e - court case management system

The Judiciary on Feb.21 signed a
Memorandum of Understanding (MoU)
with the United Kingdom government
for the design and pilot of an 18 months
automation project aimed at consolidating
Uganda’s efforts in fighting corruption.
The British Government's Department
for International Development (DFID)
through Strengthening Uganda's Anti-
Corruption Response (SUGAR) project
will provide £290,000 (about Shs1.5b) to
automate the Anti-Corruption Division
of the High Court, the Court of Appeal
and the Supreme Court. The funds will
mainly be used for the installation of
an Electronic Court Case Management
Information System to be used within the
judiciary.
At the signing event British High
Commissioner to Uganda Peter West
said it was important to give people
confidence in systems. He said the
provision of the money would help
Judiciary do its job more efficiently.
The system will record all court case
information (Online) from the time a
plaintiff files a civil case on-line; or in
criminal matters, from the Directorate
of Public Prosecution (DPP) through
sentence and execution; efficiently sharing
that information among all relevant
Parties in the case including the Public.

MPs call for overhauling party leadership Kayihura gags officials

as Tanga Lumumba row deepens
Kasule Lumumba
The move to cut staff at
the National Resistance
Movement (NRM) party
has exposed and intensified
the fights between Secretary
General Kasule Lumumba
and chairman of Electoral
Commission Dr. Tanga
Odoi with each accusing the
other of mishandling the
matter. This was after about
Tanga Odoi
400 staff members were dis-
missed after the party failed
to effectively facilitate them.
Tanga for instance said
that the Secretary General
lacked administrative skills
and that majority of the
employees left at the secre-
tariat were serving her and
not the party. But, Kasule
says Tanga has a personal
grudge on her and that the
problems at the secretariat
are caused by the fact that
the top leadership has failed
to intervene as the lecturer
mistreats her.
It’s upon this background
that a section of members
of parliament belonging to
the party have called for an
overhaul of the leadership if
sanity is to return to the par-
ty. John Baptist Nambeshe
who has been named an
NRM rebel MP for going
against the party decision
to vote against removal of
presidential age limits in
the constitution said the
problem at the secretariat
is an inherited one which
started with the unfortu-
nate removal of former
Secretary General Amama
Mbabazi. This according to
him didn’t solve the party’s
problems but divided them
and intensified bickering
which can only be resolved
by appointing new leaders.
from sharing intelligence
In a Feb.21 memo, Inspector
General of Police Gen. Kale Kayihura
warned police officers against sharing
information with other security
agencies without his authorization.
Kayihura who said any official who
goes against his directive would
be prosecuted added that doing so
contravenes the force’s code of conduct
and secrecy laws.
“Police officers conspire on their
own or are summoned by sister security
agencies and divulge information
without official authority. Such conduct
undermines the authority of the police
administration and contravenes the
police disciplinary code of conduct, the
official oath and oath of secrecy” read
the memo in part.
The police’s sister security agencies
include Internal Security Organisation
(ISO), Chieftaincy of Military
Intelligence (CMI) and the investigative
arm of Uganda People’s Defense Forces
(UPDF). Recently especially in the lead
to the 2016 general elections, these
security bodies were seen conducting
joint operations.

*terms and conditions apply

Dial *134 * 7#
4 March 02 - 08, 2018
 Week

South Sudan court sentences South African ex- colonel to death

On Feb.23, court in South
Sudan sentenced a South African
ex-colonel to a punishment
of death by hanging after he
was convicted of trying to
bring down the government, a
sentence that can appeal in 15
days. Retired Colonel William
Endley, 55, had been providing
advice to former-vice-president-
turned-rebel-leader Riek Machar,
whose forces have been fighting
a civil war since 2013.
In addition to charges of
conspiracy and the supply of
weapons, Endley was convicted
of espionage, waging an
insurgency, sabotage, terrorism
and illegal entry into South
Sudan.
During the trial, Endley
attempted to call six witnesses in
his defense but none showed up
to testify.
Meanwhile, Machar fled to the
Democratic Republic of Congo
after fierce fighting broke out in
Juba in July 2016. He is now in
South Africa under house arrest.

Alarm as Cholera breaks out in Refugee camp Police deep in debt,

The Ministry of Health has
confirmed an outbreak of
cholera in Uganda’s biggest
refugee camp in Kyangwali.
According to a statement,
668 cholera cases had been
identified in the camp by Feb.22
whereby 26 died. The disease is
believed to have been spread by
migrating refugees from Congo
who picked the disease from
their place of origin.
Dr. Julius Kasozi a Public
Health Official working with
the UNHCR confirmed that
some of the patients crossing
into Uganda over Lake Albert
by boat present symptoms
like diarrhea and severe
dehydration on arrival.
“It is possible that bacteria is
spread through disease carriers
who do not present symptoms,
or through unhygienic practices
like open defecation and
drinking unsafe water from the
lake,” he said.
However, in addition to
those confirmed in Kyangwali,
another patient tested for
positive for cholera in Kyaka
II Refugee Settlement in
Western Uganda. To curb the
situation, the ministry deployed
a Rapid Response Team of 10
cholera control specialists and
medical supplies where some
are stationed at the lakeshore
whereas some are at reception
areas in the different settlement
camps.
In addition, UNHCR and the
Office of the Prime Minister are
relocating new arrivals from
Kisoro, Mitondo and Sebagoro
to Kyangwali and Kyaka II
Refugee Settlements in Mid-
West Uganda.
This year more than 42,000
people have crossed Lake
Albert, bringing the total
number of Congolese refugees
in Uganda to over 251,000.
seek government
intervention
At a function held at
the marine police base in
Kigo on Feb25, Inspector
General of Police Kale
Kayihura revealed that
the force is grappling with
Shs125billion debt for
utilities.
Kayihura who asked
government to intervene
and write off the
debt told Minister for
Internal Affairs Gen. Jeje
Odongo that most of the
accumulated money is
for water, electricity and
police uniforms among
others.
At the same event where
the strategic policing plan
was launched, Minister
Odong urged the police to
work on its public image
saying it has been cited in a
lot of wrong doing something
that Kayihura rubbished
saying the force is under
attack by people seeking their
own selfish gains.

Justice Lillian Tibatemwa elected to international court

Following an International
Commission of Jurists (ICJ)
vote conducted between
December and January,
Supreme Court judge,
Justice Lillian Tibatemwa
Ekirikubinza has been
awarded a five year term to
work as a commissioner at the
International Court of Justice.
She was elected together with
seven judges from across the
globe including Kenya’s former
Chief Justice Willy Mutunga.
Ekirikubinza joins two
other women from Africa,
Justice Qinisile Mabuza from
Swaziland and Justice Yvonne
Mokgoro a former justice of the
constitutional court of South
Africa who doubles as the first
black woman to serve on the
bench in South Africa. The two
are serving their second term
on the Commission.
The ICJ is composed of 60
eminent judges and lawyers
from all regions of the world.
The International Commission
of Jurists promotes and
protects human rights through
the Rule of Law, by using
its unique legal expertise
to develop and strengthen
national and international
justice systems.

March 02 - 08, 2018 5

Week
Pro-age limit MPs declared ‘historicals’ Nurses threaten to sue
The National Resistance on nationwide campaign to to extending the term of company over botched
Movement (NRM) held a popularize a move to extend office for MPs to seven. The
fete in Kiboga district on the presidential term of presidential term was left Benghazi deal
Feb.25 to thank the 317 office from the current five at five but added a clause
MPs who at the end of to seven years. for this to change through Popular employment sourcing
last year voted in favor of After a number of scuffles a referendum. Nankabirwa company Middle East Consultants
removing presidential age that led to some MPs says what’s in plan for the has been put on spot by a group
limits from the constitution. opposing constitutional party now is consult the of medical workers that had
While at the event, President amendments being electorate regarding the been promised jobs in Benghazi
Museveni declared the MPs clobbered, in December referendum which will be Libya. The company is said to
historicals for what he called 2017, the amendments were organized by the Electoral have promised a starting salary
a fundamental decision done amidst controversy. Commission. of Shs3.6million for nurses
that they made. Also at the Then, President Museveni’s Already, cabinet has and laboratory technicians and
event, Ruth Nankabirwa the only hurdle for not standing approved the move to go Shs7million for doctors.
Government Chief Whip for presidency in 2021 into a referendum. The company Executive Director
spoke of a plan to embark was removed in addition Gordon Mugyenyi said the nurses
were never deployed because
of the government directive to
halt the exercise with immediate
effect. He said they had planned
to export 365 nurses who had
been taken through a registration
procedure which called for some
administrative fees.
“We follow orders from
government. We did not take
the nurses because we didn’t get
clearance from the ministry of
gender”, he said. Now, through
their lawyer Isaac Semakadde,
the nurses want Middle East
Consultants to compensate them
for the costs they incurred in the
The President Yoweri Kaguta Museveni arrives for the rally celebrating the 317 members of Parliament and process.
also the launch of the mobilisation campaign for the upcoming referandum at the Kiboga Disrict headquater
grounds in Kiboga District on Sunday 25th February 2018.

Over 30 wounded in Somali blasts

By Feb.24, the number of people
injured by two suicide car bomb blasts
that went off last Friday in the Somali
Capital of Mogadishu had risen to 35
whereby the majority were civilians.
According to Abdulkadir Abdirahman
Adan of the Aamin Ambulance Service,
the bombings where one went off near
the Intelligence headquarters and the
other near the presidential palace had
been targeted to hit the palace and a
hotel as the al-Shabab Islamist militant
group claimed responsibility that the
attack was in line with their current
plan of targeting the government and
security services.
It’s reported that before the
explosions, there was some exchange of
gun shoots between security operatives
and the militants.

6 March 02 - 08, 2018

Humour Did you know?
Australia is the only continent
with no active volcanoes

The land down under is

known for many things –
MPs attacked the Secretary to the Treasury Keith Muhakanizi for branding them
‘ignorant’ over their criticism of the Shs700b loan from PTA bank beautiful coastlines, surfing
paradise, and punchy
kangaroos to name just a
few – but what the mainland
is not known for are active
volcanoes, which can also
be categorized as dormant
or extinct. Even though
Australia is home to nearly
150 volcanoes, none of them
has erupted for about 4,000 to
5,000 years!
The lack of volcanic activity
is due to the island’s location
in relation to a tectonic plate,
the two layers of the Earth’s
crust (or lithosphere). These
IGP Kale Kayihura has banned police officers from sharing information with the army. plates move, float, and
sometimes fracture; and,
when they shift, they can
cause natural occurrences
like volcanic eruptions,
earthquakes, and continental
drift. Since the mainland of
Australia is situated in the
middle of the Indo-Australian
Plate, it’s removed from any
major geological faults.
However, Australia’s
external territories, Heard
Island and McDonalds Islands,
are home to the  continent’s
only active volcanos whose
The ruling party cannot afford to pay its own staff as the NRM secretariat had to most recent eruption occurred
lay off more than 300 staff after accumulated salary arrears of seven months. just last year!

March 02 - 08, 2018 7

 News analysis Health Business
Ugandan traders battle Mulago’s breakthrough Coffee’s future lebratin
Indians over fish maws heart bypass surgery in dilemma Ce g

Issue No. 509 Feb 23 - March 01, 2018

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

Years

Fight over Shs44 trillion

mobile money
Telecoms protest State House move
to monitor business

Inbox
Follow us on Twitter @ Money
60m
http://twitter.com/#!/ugandatalks transfered
MTN
Mobile
Money

Follow us on Facebook @ 55 m
Airtel

www.facebook.com/TheIndependentMagazineUganda Money

www.independent.co.ug

Letters are
welcome !
The Editor welcomes short and
concise letters from our esteemed
readers on topical issues. Please
Bit coin craze
send them to:
The Editor, The Independent Refer to: Whether or and you make massive of money you are
Publications Ltd, not to invest in Bit coin returns, or for some comfortable losing.
P.O Box 3304, (The Independent Feb.16 reason, it sinks and you
Plot 82/84 Kanjokya St, Online). Bit coins could lose it all. You have got Yanni
Kamwokya. either be the future to put in an amount
Kampala,Uganda.

Email: editor@independent.co.ug
Saleh proposal on ministries
Refer to: Saleh This is good analysis. stakeholders in public
proposal on ministries I hope these good administration sections.
Patronage akin to will fail (The observations are taken Marjorie Gasparotti
Independent, Feb.12). into consideration by all
breastfeeding babies
Refer to: the challenge of state
Muhakanizi, Kasaija
legitimacy (The Independent, Feb.19).
Patronage just like crime (yes crime) is
Shs 700bn saga
supposed to be like breast feeding; it
should be for a short time to give one Refer to: “The Shs the very predictable
a head start. No one breast feeds or is 700bn loan saga and “protectionist” tactics
spoon fed for life, except those who die calls to censure the come into play by the
in infancy or those who are disabled. Minister of Finance, extremely partisan
Unfair as patronage may be at some Matia Kasaija, and minded Speaker of
point, the beneficiary is supposed to the PS/Secretary to Parliament as she goes
wean themselves off it. One of the
prominent businessmen in town, it is
the Treasury, Keith
Muhakanizi (The
about fulfilling her
role to do what she
Could male
claimed, got their initial wealth (capi- Independent Feb.16). does best. circumcision lead
tal) through a heist they carried out Once again, Ugandans
with a group of friends in the 1960s. are going to witness Dr.Andrew Agona to bad sex?
The friends were arrested and carted
off to jail where they served time. He,
on the other hand, was not implicated Refer to: Male
in the heist and did not go to prison. circumcision: Could
He went on to (wisely) invest the it lead to a bad sex
money and did not only look after the life? (The Independent,
families of his partners but gave them Feb. 12). Then why
their due share upon release. Today, the hullabaloo
he is a respected and prominent busi- about millions of
nessman who has gone on to invest advertisements about
in several businesses. To the best of the need for male
my knowledge, he weaned himself off circumcision if these are
the criminal activity, only that as they the after effects. Sorry
say, certain things run in the blood, for those who have
a younger brother carried out a heist already fallen prey and
with disastrous consequences and is a watch out call to those
either serving life or is on death row. not yet (circumcised).

Ejakait Engoraton Odongkara

8 March 02 - 08, 2018


Why Ugandans feel poor
By Andrew M. Mwenda
The irony is that as economic growth picks speed
and people get better off, they also feel poorer
A
couple of months ago, the Uganda
Bureau of Statistics (UBOS) pro-
duced its survey showing that be-
tween 2012 and 2017, the number
of people living in poverty increased from
19% to 27%. I think these studies obscure,
rather than highlight the actual problem of
Uganda.
Our country should aim at structural
transformation, not poverty reduction.
Making peasants earn more is not a solu-
tion to Uganda (and Africa’s) economic
backwardness. There is no country in the
world where the majority of people depend
on agriculture for a livelihood, which is rich.
But that is a debate for another day.
For now, it is intriguing that critics of
government are relying on UBOS statistics
as evidence that poverty is increasing in
Uganda. Previously they dismissed them as
propaganda insisting that we can use our
eyes to measure poverty.
As someone who has always defended
Uganda’s economic growth story, I have
been a subject of attack. Critics have been
mocking me, asking what happened to the
“rosy picture” of Uganda’s poverty situa-
tion that I have “always painted.”
Yet UBOS figures actually prove the point
that economic growth is critical for poverty
reduction. For example, over the last five
years, Uganda’s growth has slowed down
from an average of 7.4% between 2001 and
2010 to an average of 3.9% between 2012
and 2016.
The more important point, however, is
that most people grossly misunderstand
the challenge of economic development.
For this to occur, a country needs to sustain
GDP growth over a very long period of
time, usually generations.
Economists and statisticians use the “rule
of 72”. This rule says that if an economy
(or anything else under measurement)
grew at an annual average rate of 1%, it
would double every 72 years. If it grew at
an annual average of 7%, it would double
every ten years. It is not accurate but gives
us a good idea.
Now 7% is about the highest rate of
growth any country has ever enjoyed in
history. Of course some outliers like South
Korea did 9.4% between 1960 and 1990 and
China 10.2% between 1980 and 2010 among
a few others.
The Last Word
I tend to remove from the sample coun-
tries that have relied on natural resources
to grow because they are enjoying God’s
(or nature’s) bounty. Equally, I remove
city-states like Hong Kong and Singapore
because, lacking a hinterland, they did not
have a peasantry to transform from agricul-
ture to industry.
Let us assume a country had a per capita
income of $150 as Uganda did in 1986. Let
us assume its per capita income grows at
a supersonic speed of 7% per annum. This
country would reach $300 after ten years,
$600 after twenty years and $1,200 after 30
years i.e. it would still be a poor country. It
would take 70 years to reach a per capita
income of $19,200 – which is the lower
rungs of rich countries.
Uganda’s per capita income growth has
been made worse by a very high rate of
population growth. Remember that per cap-
ita income growth is calculated by subtract-
ing the population growth rate from GDP
growth rate. From 1986 to 2016, Uganda’s
GDP grew at an annual average of 6.74%
while its population grew at 3.2%, giving us
a per capita income growth of 3.5%. Now it
may be surprising to many that no country
in Europe ever achieved this over 30 years,
except West Germany between 1950 and
1980, which did 3.8%.
Let me give another example: the USA
has the second highest per capita income
of any country with a hinterland – after
Norway. Note that I have eliminated city-
states like Singapore, Luxembourg and
Hong Kong, and mineral rich countries like
Saudi Arabia, Kuwait, Oman, Qatar, Brunei
and the United Arab Emirates from the
sample. The USA’s per capita income grew
at an annual average rate of 2% from 1900
to 2000. So, Uganda’s per capita income
growth record is good.
The fast growth economies of East Asia
performed much better than this between
1960 and 1990. Combined, their annual
average rate of growth of their per capita
income was 5.6%. That difference of 2.1%
between them and Uganda is huge when
compounded over three decades.
Uganda would have achieved similar
figures if its population grew at 1% per
annum. Yet I do not think population is the
problem. I will discuss the value of a larger
population another day.
Opinion
The Nobel laureate in economics, Michael
Spence, did a study of all economies of the
world from 1955 to 2005 to find out how
many countries sustained an annual aver-
age growth in GDP at 7% and above for 30
years. He found only 13, which he calls the
“elite club.” In doing 6.74% between 1986
and 2005, Uganda was the 17th fastest grow-
ing economy in the world. If you remove
mineral rich countries from the sample,
Uganda becomes ninth in the world, first in
Africa.
So why are urban Ugandans angry when
their country has been doing this well? The
paradox of economic development is that
as growth picks apace and poverty begins
reducing, people feel poorer.
Why? Growth begins in cities where a
few enterprising individuals create busi-
nesses. These attract people from rural
areas to partake in the opportunities. But
the number of immigrants into the cities is
always higher than available opportunities,
leading to destitution and slums.
Yet people who come into cities (even
when living in slums) do better than those
in villages. Urban poverty is therefore a sign
of vitality and social change. UBOS figures
prove this point. For example the number
of people living in poverty around Kampala
is 5.9% and its surrounding Wakiso district
is only 7.5%. This is much lower than 11.5%
in the richest region of Ankole or Karamoja,
which is 60%.
So why is poverty felt much more deeply
in cities where people are better off than
in villages where they are worse off? It is
because people in cities are more exposed
and therefore aspirational. They see extreme
wealth, which they compare with their
own lives. This makes them feel left behind.
When urban people complain about pov-
erty, they are referring to relative poverty,
not absolute poverty.
Therefore the belief that excellent eco-
nomic performance will create a happy
population is an illusion. Those with
knowledge of history know that in Europe,
this transformation created a lot of anger.
Indeed, it led to the development of radical
ideologies and movements such as com-
munism, socialism, anarchism and nihilism.
Uganda is no exception.
amwenda@independent.co.ug
March 02 - 08, 2018 9
 cover story

Kasaija, Muhakanizi in
tight corner
Finance under attack over fresh
borrowing, faces tough IMF

Keith Muhakanizi (L)

Matia Kasaija (R)

10 March 02 - 08, 2018


M
By Haggai Matsiko
atia Kasaija and his team
at the Finance Ministry
find themselves in a
very tight corner as they
look for Shs29.2 trillion
to finance a new budget.
Previously, finding cash did not present
as a big problem—the taxman would have
met its revenue collection targets or Finance
officials would easily just borrow domesti-
cally or internationally.
But it now appears as if all the three ave-
nues have all connived against the team at
Finance. Uganda Revenue Authority (URA)
has already recorded a huge tax revenue
shortfall. Kasaija’s recent decision to borrow
Shs.750 billion from the domestic market is
being criticized as a “mistake” likely to fur-
ther hurt the economy. Yet borrowing from
the international market is also becoming
tough and could get tougher.
The Independent can reveal that while
Kasaija was busy defending his decision
to borrow domestically, at the back of his
mind were the intractable negotiations
between officials at the Central Bank and
Finance Ministry on one hand and a team
from the International Monetary Fund
(IMF). The negotiations are being seen as
the latest window into the tough times the
managers of Uganda’s economy find them-
selves in.
By press time, details remained scanty
but insiders said the two parties had not
made much head way. Several attempts
to get Kasaijja to comment were futile—he
told this reporter severally that he was
locked in meetings. IMF Resident Represen-
tative for Uganda, Clara Mira told The Inde-
pendent in an email response that a “small
team” and not the “full mission” was in
the country looking at the implementation
of the current budget, the preparation of
next years’ budget and “just understanding
ongoing developments and pressures”.
She pointed out revenue mobilization,
government expenditure and debt manage-
ment as sticking issues for the IMF team.
“Despite progress Uganda still has a low
tax to GDP ratio compared to other coun-
tries in the region,” the IMF representative
noted.
The budget, she added, should effectively
and realistically prioritize expenditures,
including all unavoidable expenditure, con-
tractual etc.
“Supplementary budgets should not
become the norm,” Mira added, “And
finally, the key guiding principle behind
fiscal policy is that government debt should
be kept within manageable levels.”
While Clara appeared overly diplomatic
in her comments, insiders say the IMF visit
and their key concerns have piled more
pressure on Kasaija and Keith Muhakan-
izi, the Secretary to the Treasury, who are
Fred Muhumuza
Ramadhan Ggoobi
already in the midst of many storms.
For instance, on debt management, the
two are already facing a probe by the Audi-
tor General over the management of the
Shs700 billion PTA loan. The probe followed
a report by parliament’s Public Accounts
Committee (PAC), which recommended
that Kasaija is censured and Muhakanizi
fired. Plans to borrow another Shs.750 bil-
lion from the domestic market, have kicked
off another storm.
On revenue mobilization, URA has failed
to collect Shs300bn in the first half of this
financial year and projections are that the
full year deficit might reach the Shs700billin
mark.
This is almost double what URA failed to
cover story
collect in the previous financial year. Similar
cash constraints in 2016 forced Kasaija and
Muhakanizi to borrow $200 million from
PTA. Sources say apart from the Governor
of Bank of Uganda Tumusiime Mutebile,
the then Director for Economic Affairs Law-
rence Kiiza, the Accountant General Law-
rence Semakula, the IMF was also opposed
to Uganda’s acquisition of the $200 million
loan.
The latest meeting with the IMF fol-
lows another meeting in which the IMF
expressed growing concerns over Uganda’s
failure to observe certain conditions that
inform the review of the country’s economic
performance under the Policy Support
Instrument (PSI) arrangement.
The PSI is an instrument of the IMF
designed for countries that do not need bal-
ance of payments financial support. The PSI
helps countries design effective economic
programs that, once approved by the IMF’s
Executive Board, signal to donors, multilat-
eral development banks, and markets the
Fund’s endorsement of a member’s policies.
Uganda’s PSI program expired in July
2017. According to Mira, IMF and govern-
ment started negotiations following the
authorities’ expression of interest in Octo-
ber/November 2017. Again, diplomatically,
Clara noted that if the authorities so wish,
they stand ready to continue the process on
the basis of the approved 2018/19 budget.
Insiders say in the past, Kasaija pleaded
with the IMF not to make a statement that
would portray Uganda as a basket case.
Economist Fred Muhumuza, a former
advisor to the Finance Minister, gave a hint
about why Kasaija was pleading.
“While the IMF doesn’t lend Uganda
money,” Muhumuza told The Indepen-
dent, “Many people have been lending to
Uganda on the strength of the IMF’s PSI.
If there is no PSI, those people will not be
lending to us. Already many people have
already decided they will not be lending to
government.”
Uganda’s PSI was last approved by the
IMF on June 28, 2013. A new one was sup-
posed to be established in 2016 but Uganda
didn’t meet the conditions and instead, a
one-year extension was approved on June
6, 2016.
After the one year, the conditions were
still not met and a further extension through
July 28, 2017 was approved on June 19,
2017. That extension has since expired
necessitating a new round of negotiations.
“I am surprised they (IMF) have stuck
that far,” Muhumuza told The Independent,
“You only extend that much if you think the
other party is ready to address the problem.
But the managers of this economy do not
seem to be going in that direction.”
Given the tensions, Muhumuza noted,
the risk is quite wide, it might be hard for
them to compromise and reach agreement
again.
March 02 - 08, 2018 11
cover story
Christine Lagarde and President Museveni at State House last year.
According to Muhumuza, the perennial
sticking issues between government and the
IMF have tended to include concerns over;
revenue mobilisation, supplementary bud-
gets, debt management.
The economist said that officials here
have continued to fail to observe these and
have instead tended to focus on addressing
the symptoms and not the problems.
Muhumuza explained that because the
economy is not doing well, it follows auto-
matically that URA cannot meet its targets.
For instance, he said, the price of fuel has
gone up, people have reduced their fuel
intake, so the tax collected automatically
goes down.
He also said that while the internal
resources are dwindling, government
appears unready to reduce expenditure,
instead they prefer to keep borrowing and
to make matters worse on a short term
basis.
“Financial management is tough,” Muhu-
muza said, “If you take a wrong turn, it is
hard to correct things. And we appeared to
12 March 02 - 08, 2018
have taken a wrong turn when we decided
to borrow extensively for long term infra-
structure there by accumulating debt with
high interest which we are now struggling
to pay.”
Economist Ramadhan Ggoobi, who
has severally interacted with various IMF
delegations to Uganda, largely agrees with
Muhumuza. But he doesn’t think the IMF’s
approach can help any more.
“When you see the way things are done
here,” Ggoobi said, “the IMF’s reliance on
carrots no longer works. I do not think they
still have the teeth to bite. With other win-
dows for multilateral and bilateral access
to credit, the government no longer cares
about the IMF.”
Only Bank of Uganda (BoU), Ggoobi
said, is still listening to them on the mon-
etary side. But even there, the gains of the
Central Bank are easily eroded by govern-
ment.
For instance, Ggoobi explained that while
the Central Bank has been trying to ease
monetary policy to bring down interest
rates and enable the private sector access
affordable credit, now you have govern-
ment coming in with a demand of Shs800
billion, 40% of the Shs.2 trillion of available
credit.
“Now the banks will get excited again,
interest rates will go up again,” Ggoobi said,
“That is the problem. Monetary policy is not
coordinated with fiscal policy.”
The economist claims that the kind of
fiscal indiscipline seen today is reminiscent
of the 1990s.
“The kind of borrowing Uganda is doing
today,” Ggoobi said, “Uganda was not
doing five years ago. In our situation, you
need both the stick and the carrot. You saw
when the World Bank pulled out a stick,”
Ggoobi said, “we acted.”
He was referring to a decision by the
World Bank in 2016 to suspend lending to
Uganda of $1.5 billion (Shs 5 trillion) bring-
ing to a grinding halt implementation of
key development projects including in the
critical education sector. World Bank financ-
ing is critical to Uganda. In the financial

year 2014/15, for instance, 57% of Uganda’s
external debt was from the World Bank.
“That is why in my view,” Ggoobi said,
“the IMF needs to revise strategy. They
need to look for more kind of explicit sanc-
tions,” the economist said.
But for now, the IMF has tended to stop
at caution.
In their last statement, which came out
last year, Tao Zhang, the deputy manag-
ing director and Acting Chair of IMF’s
Executive Board, a body that runs the IMF,
noted that macroeconomic performance
in Uganda has been sound and that per-
formance under the PSI has been “broadly
satisfactory”.
While the FY17/18 budget targets a fur-
ther revenue increase, Zhang noted, specific
measures have yet to be identified.
“The tight current spending envelope
will require strong expenditure controls
and efficiency gains to avoid the need for
supplementary budgets or renewed domes-
tic arrears,” Zhang added, “Social spending
would decline in real terms and relative
to EAC peers, requiring efficiency gains to
Clara Mira, IMF Country Representative
While the IMF
doesn’t lend
Uganda money,”
Muhumuza told
The Independent,
“Many have been
lending to Uganda
on the strength
of the IMF’s PSI.
If there is no PSI,
those people will
not be lending to us
protect the level of service delivery.”
He also noted that safeguarding debt
sustainability necessitates continued domes-
tic revenue mobilization and sound project
implementation to realize the envisaged
growth dividend from infrastructure invest-
ment. “The authorities should target the
projected debt trajectory as a fiscal anchor,”
Zhang added.
The IMF also noted that the implementa-
tion of the FY16/17 budget was mixed.
They noted that while revenue increased
by about ½ percent of GDP, recurrent
cover story
expenditures exceeded program projections
by about the same percent of GDP.
“The government cleared domestic
arrears to the tune of ½ percent of GDP of
the outstanding stock of 3.2 percent of GDP
at end-June 2016,” Zhang noted, “Domes-
tically-financed capital expenditures are on
track, but the foreign financed ones are sig-
nificantly under-executed. The government
relied again on BoU financing, complicating
monetary policy implementation.”
Zhang’s statement came several months
after another by IMF Managing Director,
Christine Lagarde, at the end of her visit.
Publicly, Largarde commended Uganda
for its growth and poverty reduction
achievements over the past three decades,
which she said was underwritten by strong
macroeconomic policies, and a reliance on
the private sector as the engine of growth.
She urged government to be more
aggressive on promoting inclusive growth
which is needed to make further progress
on poverty reduction and create jobs for the
fast-growing population.
While she hailed Uganda for scaled-up
infrastructure investment in the energy
and transport sectors to relieve key growth
bottlenecks and enhance regional linkages,
she emphasized that lifting growth will also
require complementary reforms that reduce
income inequality and support gender
equality.
“I commended the government and the
Bank of Uganda for their prudent approach
to fiscal and monetary policy,” she noted,
“Continued progress on domestic revenue
mobilization will help keep government
debt on a sustainable path. Uganda’s infla-
tion targeting framework is serving the
country well.”
Like now, Lagarde visited at a time when
the government was desperate for new
money. The country trade deficit was soar-
ing, public debt swelling and there was eco-
nomic slowdown across the region.
Since then, things appear to have gotten
worse. Poverty statistics indicate an increase
in headcount poverty from 19.7% to 27%.
Inequality stands at 40 per cent higher than
it was in 1990’s. Uganda has suffered a
US$ 500 million reduction in foreign direct
investments over the last few years.
That is partly why Museveni needs the
IMF’s seal of approval to access more inter-
national debt. Meanwhile, Uganda’s debt
burden has also continued to rise and is
projected to continue rising towards 45%
of GDP by 2020, according to the Moody’s
Investors Service, which downgraded rat-
ing of Uganda’s economy to B2 from B1 in
November 2016.
As he negotiates with the IMF
and looks for resources for the new
financial year, Kasaija must focus on
addressing these challenges and turn
around the economy. Many appear
unconvinced he is doing that .
March 02 - 08, 2018 13
rwanda
Kagame addressing leaders at the retreat in Gatsibo district.
Focus on Development
President Kagame pushes for delivery on
development targets at leadership retreat
By Independent Reporter
R
wandan President Paul Kagame’s
key message at the opening of the
country’s 15th National Leadership
retreat (Umwiherero) at Gabiro
in Gatsibo district was a call to leaders
to deliver on the country’s development
vision.
The president said the retreat was part of
Rwanda’s culture of self-assessment aimed
14 March 02 - 08, 2018
at ensuring that what leaders do helps
them deliver the government’s vision.
“It is our culture to change what needs to
be changed,” President Kagame said, “To
evaluate what hasn’t been going on well
and for what is going on well to be even
better for us to continue moving forward.”
He also explained that the retreat helps
leaders to understand whether the vision
they set is clear to them and everyone.
The President also called on the leaders
to put in practice what is discussed at the
annual retreats if things are to change.
“As this retreat goes on,” he said, “We
will find that there are things that we know
we are not doing well yet they are not
changing. This means there is a problem.”
Specifically, the President said there are
things that have been discussed for the last
15 times in the last 15 years but they keep
coming up.
“This retreat therefore is meant for us to

Government leaders at the retreat.
assess ourselves as leaders because we have
to provide leadership to the people we
lead, the people that have entrusted us and
are counting on us.”
He said Rwanda’s high rankings in
different indices mean that the country
has potential to do better if the leaders
coordinate and use available resources
efficiently.
The 15th edition of the annual
National Leadership Retreat focused
on the country’s development targets,
prerequisites for transformational growth
and improving quality of health services.
Over 300 senior leaders from the central
and local government, state authorities and
the private sector attended the event.
During the four day retreat from Feb
26 to March 1, education for a knowledge
based economy and how to position
Rwanda better was also on the agenda.
Auditor General Obadiah Biraro, said
that in terms of cooperate governance, the
retreat is like an annual general meeting of
shareholders of the Republic of Rwanda.
During his presentation, Prime Minister
Edouard Ngirente said that Rwanda
implemented at least 82 per cent of
resolutions of the 14th National Leadership
Retreat.
At last year’s retreat, 26 resolutions were
adopted. Ngirente said 15 per cent of the
resolutions were at an average rate of 50
to 74 per cent. Up to 26 resolutions were
adopted at last year’s National Leadership
Retreat.
Some of these included strategies
to fast track Vision 2020, the country’s
blueprint for development and improved
coordination between institutions of the
central government.
The Prime Minister also told the
gathering that a total of Rwf720million
which is 58 per cent of embezzled funds
had been recovered in the period between
April 2017 and January 2018.
“There is an improvement in the drafting
and management of contracts between
the Government and private operators,
and the government has stepped efforts to
hold those responsible for causing losses
to Government accountable, and finalising
recovery of embezzled funds from those
who were found guilty and prosecuting
apprehended suspects,” Ngirente told the
leaders.
He also called upon the leaders to
maintain high levels of integrity so as
to fast track the country’s development
agenda. Ngirente said low levels of self-
evaluation, deceitful reporting on the
number of citizen-oriented policies and
rwanda
activities have bogged down the path
towards development.
Anastase Shyaka, the Chief Executive
Officer of Rwanda Governance Board
(RGB), said the country is looking for a
new momentum on the transformational
agenda.
“The leadership retreat is a time
for new momentum in delivery,
coordination and focusing on things
that are transformational,” the official
noted, “We might not necessarily be
succeeding in the things we take as
resolutions but the most important
thing is that we are sure this
arrangement has an impact on our
level of delivery and advancement of
government programmes”.
The leadership retreat is a tradition
in Rwandan culture where leaders
convene to reflect on issues affecting
their communities. The event has
become a model of accountability for
Rwandan leaders.
In addition, it is a way for the leaders
to take stock of achievements and
more importantly to identify strategies
of accelerating implementation of
national policies.
March 02 - 08, 2018 15
rwanda
EIB, EU and the Rwandan government officials during the signing of the €45million loan to finance sewage and waste water project in Kigali on Feb 20, 2018.
European bank extends
US$29.6m to Rwandan SMEs
By Isaac Khisa
T
he European Investment
Bank (EIB) has extended
US$29.6million (€24million) loan
to two local banks for financing
small and medium sized firms in
Rwanda.
The bank signed the US$19million
loan with the Development Bank of
Rwanda and another one with I&M Bank
of Rwanda at US$10milllion.
In addition, the bank also signed a
US$55.4million (€45million) long term
loan with the Rwandan government to
finance sewage and waste water projects
in the capital Kigali.
The entire project, expected to cost
US$118.2 million (€96 million), will
be financed alongside the African
Development Bank and the Rwandan
government.
Present during the signing were
Maria Shaw-Barragan, the EIB
director responsible for lending
operations outside Europe and senior
representatives of the Development Bank
of Rwanda and I&M Bank of Rwanda.
Also present was the European Union
Ambassador to Rwanda, Nicola Bellomo.
Barragan said the new investment, to
be matched with the two institutions,
16 March 02 - 08, 2018
will enable the country’s entrepreneurs
and businesses seeking to expand
activity to benefit from long term loans
in Rwandan francs and the US dollars.
“The European Investment Bank is
committed to supporting private sector
investment across Africa and we are
pleased to build on previous successful
lending initiatives with two leading
Rwandan financial institutions,” she
said.
She added that the two new credit
lines represents the largest ever support
for private sector investment in Rwanda
by the long-term lending institution
of the EU in more than 40 years of its
operations in the country.
Commenting on the new credit
facility, Bellomo (the EU Ambassador
to Rwanda) said the EU recognises the
crucial role of private sector investment
to support sustainable economic growth
and reduce poverty.
“This new initiative by the European
Investment Bank, the EU Bank, builds
on a proven track record of helping
companies across East Africa to expand,
including here in Rwanda,” he said.
“Technical assistance provided
alongside the record new private sector
lending will both strengthen financial
services in Rwanda and financial skills
within the Rwandan businesses.”
Over the last years, EIB has provided
over EUR 87million for the financing of
small, medium and micro-enterprises
across the country through dedicated
lending programme managed by local
banks.
Beyond Rwanda
In East Africa, the EIB has successfully
supported private sector investments in
conjunction with leading local banks in
Rwanda, Kenya, Tanzania and Uganda
through the recently extended Private
Enterprise Finance Facility and working
with regionally active banking groups.
Last year, the bank provided
US$3.2billion (€2.6billion) for new
investment across Africa. Projects
supported belonged in the sectors of
agriculture, energy, telecommunication,
and transport and water infrastructure.
It also supported the strengthening of
microfinance lending and private sector
investment across the African continent.
For the last 10 years, the EIB has
provided more than €7.9 billion
(US$9.7billion) for private sector
investment across Africa – a move that
has been welcomed by development
oriented experts and leaders.

Ugandans should look to
Banks for financing when
constructing their homes
I
n most developed countries
building a house is a capital-
intensive venture which requires
a well-developed plan and readily
available finances. This ensures the
construction starts and is completed
on time and the quality of the build is
generally not compromised.
In Uganda however as in many
developing countries most people who
decide to build their own homes do so
incrementally overtime using business
income, personal savings and or small
unsecured loans. As a result the entire
exercise tends to take a very long time
leading to cost overruns, construction
delays and extended periods where
the house is left unfinished which
ultimately affects the quality of the end
product.
But what are the alternatives, one
might ask? After all getting formal bank
financing in a country like Uganda can
be challenging and very expensive if
you are lucky enough to get it. Many
Ugandans might be shocked to learn
that bank financing for home purchases,
construction or renovations is not as
hard as most people think and paying
a mortgage can be almost the same as
monthly rent. How can this be possible?
First of all it’s important to
remember when you consider
approaching a bank for credit, timing
is everything. The period when
you apply for a loan can be a major
contributing factor as to whether you
get the facility or not. In a high interest
rate environment the chances of getting
a loan are dramatically reduced. This
is because banks are reluctant to
lend, knowing it’s a lot more difficult
or almost impossible for people to
pay back the money they borrow. In
Uganda right now the situation is the
complete opposite, that’s because in a
bid to encourage lending and stimulate
economic growth Bank of Uganda has
over the past 15 months continuously
lowered the CBR to a point where it’s
at the lowest level ever (9.5%). Most
banks especially the larger ones will
follow the central banks lead and also
reduce their Prime lending Rates. As a
result the cost of credit will be cheaper
and banks more willing to give out
loans because they know borrowers are
better positioned to pay back the money.
Secondly borrowing can be
considerably more affordable if you do
your homework and carefully select
not only the bank that best fits your
profile but have also rationalized the
exact nature of the loan that suits your
need? Why? Because despite the CBR
being a benchmark figure of the cost
of money, not all banks offer the same
lending rates. A quick perusal of the
BOU Commercial banks tariff guide
published every quarter demonstrates
this fact. Stanbic Bank Uganda for
example has a PLR of only 17.5%,
the lowest in the market yet there
are other banks that remain as high
as 25%. Why the difference? Stanbic
follows a deliberate policy of matching
movements of the CBR with revisions to
their PLR. Not all commercial banks in
Uganda do this.
In addition the choice of type of
facility is equally important. Here we
are talking about the importance of
matching the right type of debt incurred
with the asset requirement. It doesn’t
Advertorial
make any sense taking out a 20 year
long term mortgage against your house
when all you need to do is build an
extension, here an equity release which
is easier to access and cheaper would
be more appropriate. Loan financing
takes many forms. Stanbic bank for
example offers a full bouquet of options
including long-term mortgages, Equity
release facilities, home completion,
land loans among others, each of these
products has been specifically tooled
for a particular function, with different
durations, rates and conditions which
must be well understood before the loan
is taken out.
This brings me the last point the
interest rate is not the only factor that
makes a loan expensive or prohibitive,
the terms often do. A bank X might
offer you a 20 year mortgage facility
at what seem to be friendly interest
terms and you take it but when you run
into a windfall and look to retire the
facility you discover to your horror that
you must pay 10% of the outstanding
amount as a penalty. Imagine
borrowing 500million and having to
pay 50 million as a penalty to pay off
the loan early. Terms and conditions
vary from bank to bank depending on
internal lending policies, size of the
bank and nature of the loan. Stanbic
bank for example does not charge a fee
for early settlement of secured mortgage
loans the bank is able to do so because
our objective is to encourage people to
pay back their loans.
Using a loan or facility to construct,
complete or renovate a home needs
to be encouraged in Uganda as it will
improve the quality of houses being
built and go some way towards helping
to fill the housing backlog. For this
to happen interest rates must be kept
low and the general public made more
aware of the multiple benefits of using
formal bank financing as a means of
easing the construction process.
By Jackson Emanzi Stanbic Banks Head of
Home loans
March 02 - 08, 2018 17
news analysis
US$78 billion regional
infrastructure projects
EAC leaders push for mega deals amidst concerns
of limited funds, slow integration progress
By Julius Businge
A
midst big talk on how to raise
over US$78 billion for regional
infrastructure projects, Tanzania’s
President John Pombe Magufuli
Magufuli had tough questions for the East
African Community Council of Ministers.
“I am sorry I am harsh but why did the
Secretary-General not tell us why they only
implemented 14 out of the 200 projects
earmarked in 2014?” Magufuli asked at the
recently concluded 19th ordinary summit of
the East African Community Heads of State
at Speke Resort Munyonyo, a Kampala
suburb.
His question also echoed concerns the
East African Community Integration
process has been too slow. Political will
from frontline Presidents to implement
initiatives of the integration process; the
appetite to spend on big infrastructure
projects to connect the region and ease the
cost of doing business and how to fund the
planned projects appeared the central issues
at the meeting.
This year’s retreat was the 4th on
Infrastructure Development and Financing
and it aimed at reviewing progress on the
implementation of the priority projects
agreed upon in the 3rd Retreat held in
November 2014. It also served as the 1st
Retreat on Health Sector Financing and
Development.
Apart from current EAC Chairman
18 March 02 - 08, 2018
and host President Museveni, Kenya’s
Uhuru Kenyatta, South Sudan’s Salva
Kiir, Magufuli, First Vice President of the
Republic of Burundi, Gaston Sindimwo
attended the meeting. Rwanda’s Minister of
Infrastructure, James Musoni, represented
President Paul Kagame.
The meeting was organized under
the theme ‘Enhancing Socio-Economic
Development for Deeper Integration of the
Community.’
The Presidents plan to complete 286
infrastructure projects intended to link the
region and promote trade by 2025. The
projects would entail upgrading 7,600km
of roads; lay the 4,000km Standard Gauge
Railway, and increase the combined
installed capacity of electrical power
generation from 4245MW to 6734MW.
They also plan to construct 3,000km of the
oil pipeline and an oil refinery, and improve
efficiencies at the Mombasa and Dar-es-
Salaam ports. In the health sector, they plan
to set up a regional centre of excellence for
higher medical education and research
supported by the African Development
Bank (ADB). In the region, only Kenya has
completed its first phase of the Mombasa-
Nairobi SGR line, which Museveni said has
reduced the cost of transport.
These and more projects are expected to
cost up to US$78 billion. Of that amount,
US$62 billion would be used on railways,
roads and energy projects in a bid to ease
transportation and boost manufacturing
sectors. Out of the planned expenditure,
only 6% (US$5 billion) has been committed
by the donor community including the
World Bank, Africa Development Bank,
TradeMark East Africa and the European
Union.
In their submissions, the Presidents
appeared divided on the source of financing
for these huge projects. They hinted on
issuing infrastructure bonds as one avenue
of raising the money but no further details
were shared on this. Museveni supported
the idea of issuing infrastructure bonds.
The other related avenue of bolstering
the health sector would be for drug
manufacturers to set up shops in the region,
said President Museveni.
On his part, Kenya’s Kenyatta appeared
to vouch for Public Private Partnerships
(PPPs) as the way to finance the region’s
projects.
But Museveni appeared to disagree
noting that roads should not be constructed
through PPPs to pave way for the rich to
pay road tolls while the poor get stuck on
crowded public roads. 
Similarly, Magufuli said PPPs are
too expensive for a region that is less
competitive on the international arena in
terms of trade.
He cited transport costs where he said
the average cost of transporting a 20-feet
container over a distance of 1,500km in
the EAC is $5,000 which is comparatively
the same as the cost of moving the same

container over the 9,000km between China
and Tanzania.
Magufuli also said the EAC region has
high electricity costs when compared with
the rest of the world partly because business
is in the hands of the private sector, which
he said is profit oriented and cares less about
the common person.
System inefficiencies
Following his tough question to ministers,
Magufuli said that the meeting needed
to analyse the challenges faced over the
past three years in the implementation
of the planned projects so as not to again
compromise future plans.   EAC economy.
He also said the region needs to collect
more taxes, use them efficiently and stop
illicit financial outflows.
James Musoni, [Rwanda’s Minister of
Infrastructure, who represented President
Paul Kagame at the summit], said the
problem with public funding for expensive
infrastructure projects is that the region’s
population is too poor to provide the
necessary taxes and a majority of EAC
partner states already have a high debt
burden.
Musoni’s view is in line with that of
experts who are cautioning the EAC
member states to go slow on borrowing to
avoid accumulating too much debt.
Available data indicates that the six
countries have a combined GDP of approx.
Museveni, Kenyatta launch Busia One Stop Boarder Post
On Feb.24, Presidents Yoweri Museveni
(Uganda) and Uhuru Kenyatta (Kenya)
launched the Shs19.5bn Busia One Stop Bor-
der Post (OSBP), the second busiest entry
point for Uganda.
OSBPs are aimed at easing clearing of
goods and passengers at once and not twice
at the border of the two countries with the
soul purposes being - reducing the time
spent on this trade.
Data from the Uganda Revenue Author-
ity indicates that for the last few months
the Busia OSBP has been in operation,
revenue collection has grown by 45% from
Shs 436bn in FY2013/2014 to Shs 798bn in
FY2016/17 - due to the faster turnaround
time with fuel imports contributing an aver-
age of 90% of the total tax revenue collected
during the period.
The time to clear goods has also dropped
by 80% –queues of trucks waiting for clear-
ance that used to be a permanent fixture
here are a thing of the past.
There has also been increased border traf-
fic of persons to an average of 23 buses or
800 passengers (inward/outwards) and 230
trucks of which 90 are fuel tankers, 140 are
imports of general goods and 85 carrying
export goods on a daily basis.
US$147billion. In terms of percentages, it is
averaging at around 40% to the GDP and
thus, a spike in borrowing would easily
compromise the bloc’s relationship with
international lenders and economy monitors
like the International Monitory Fund and
others. So, what next?
Lawrence Bategeka, an economist and
deputy chairperson of the committee on
national economy in the Parliament of
Uganda told The Independent that countries
in EAC have been borrowing and must
continue to borrow. He said the money
borrowed should be put to good use so it
can realise tangible long term benefits for the
On funding the big projects, Bategeka
said, the EAC states should consider
borrowing from emerging lenders like
Brazil, Russia, India, China and South Africa
(BRICS) which have somewhat soft terms
regarding lending policies compared to
other lenders like the World Bank.
Going forward, he said EAC countries
need to manage their economies better so
they can produce, export and earn more
and save – this would partly deal with the
dependency concept that is entrenched in
“our minds as poor countries.”
“…we need to use science and technology
to produce more for exports and attract
investments which would help us to finance
our own projects,” he said.
For Uganda, there has been 56% growth
in the value of exports through the Busia
OSBP between FY2014/15 to FY2016/17 with
top exports being maize, beans and milk.
Frank Matsaerk, the chief executive offi-
cer for TradeMark East Africa said, doing
business at the border has been cumber-
some and the launch of the Busia OSBP
would ease the process.
“This is so far the best performing border
in the East African region,” Matsaerk said,
“We are planning to spend more money on
other borders across the region to ease gen-
eral trade activities.”
On his part, President Museveni said that
for a long time, Africans have been asleep
but what “we have done today shows that
Africa is getting out of slumber”.
Lack of unity coupled with these border
separations, he said, have had catastrophic
consequences on us.
He added that the Busia OSBP facility
will be improved with new facilities like
X-ray technology to check loaded trucks
and stop using the manual method of
checking goods.
Kenyatta described TradeMark as a
practical partner in easing trade across the
region. He said EAC partners need to work
news analysis
Some of the summit resolution
 It assented to the EAC customs
management (amendment) bill
2016, the EAC supplementary
appropriation bill, 2016, the EAC
appropriation bill 2016. The sum-
mit also assented to the EAC
appropriation bill 2017 and the
EAC supplementary appropriation
bill 2017
 It received a report on the EU-EAC
Economic Partnership Agreement
from President Museveni and
decided that the EAC continues to
engage with the EU for satisfactory
clarification of concerns of some
partner states on the EPAs.
 The summit directed the council of
ministers and partner states to fully
implement the single customs
 Concerning the monetary union,
the summit directed the council to
expedite the establishment of the
monetary institute and other insti-
tutions according to the roadmap
of the East African monetary union.
 The summit directed Tanzania
and Burundi to ratify the EAC
double taxation agreement
and deposit the instruments of
ratification by July 2018
together alongside partners like TradeMark
to increase production instead of increasing
consumption.
“If we are to compete with giants,”
Kenyatta said, we have also have to be
giants and fight poverty.”
The launch of the Busia OSBP effec-
tively added the major entry and exit point
between the two countries to those already
operating under the Coordinated Border
Management concept.
This particular post is approx. 200km,
east of Kampala and 431km west of Nairobi
cities. It handles transit traffic to and from;
Uganda, Kenya, Rwanda, Burundi, Demo-
cratic Republic of Congo and South Sudan.
Its construction started in 2012 and was
completed in 2017 with funding from
TradeMark EastAfrica. It is part of the
US$120 million that TradeMark has sunk
in similar facilities at Malaba, Mutukula,
Mirama Hills/Kagitumba, Katuna/Gatuna,
Cyanika over the years. TradeMark also
plans to fund other OSBPs at the borders
with the DRC and South Sudan.
(By Julius Businge)
March 02 - 08, 2018 19
news analysis
Mugisha Muntu during consultations in Gulu.   COURTESY PHOTO
Muntu presses on
with consultations
Critics say he is entrenching FDC
contradictions he seeks to cure
By Ian Katusiime
F
ormer Forum for Democratic
Change (FDC) President Maj.
Gen. Mugisha Muntu is growing
more resolute in his pursuit
for a solution to what he calls internal
contractions in the party despite criticism
that his approach is making the situation
worse.
“If we are not able to resolve those
contradictions,” he told The Independent
on Feb. 15, “we shall not be able to
manage power.”
Muntu who says his main focus
is on the political management of
change, notes that Uganda is in a state
of crisis because of the constitutional
amendment last year that gave President
Museveni carte blanche to a potential life
presidency.
20 March 02 - 08, 2018
“We want to develop consensus, the
beauty is that the atmosphere is always
good and people are voicing their
concerns,” Muntu said, “we are also
dealing with actors at a national level.”
At the time, Muntu said his team had
just covered Arua, Koboko, Maracha,
Yumbe and other parts of the West Nile
region. They were headed for Kitgum
after a day in Gulu.
In these places, he explained that
his team conducts town hall meetings
with leaders of FDC and those who are
independent minded. Their aim, he said,
is not to propose what direction they
should take but to gather views and
do an analysis of these views once the
consultative process has ended, and then
engage the party leadership on the issues
that would have been raised.
This sounds fair enough to his
supporters and a few of his opponents.
FDC President, Patrick Amuriat, who
beat Muntu to the post, for instance,
prefers to be cautious about the issue.
“He is consulting as any other citizen
and he is on his own,” Amuriat told The
Independent emphasizing that anyone
in FDC is free to consult. “Dr (Kizza)
Besigye goes and does his consultations
and there is no problem. As far as we are
concerned, Muntu is doing it as a free
citizen. To consult is not a problem.”
Amuriat prefers to be diplomatic
perhaps because now that he is in charge
of the party, it is in his interest to ensure
that he doesn’t amplify the tensions that
already exist. He told The Independent
that it would be unfortunate if Muntu
eventually leaves the party after the
consultations.
But Amuriat’s ardent supporters and
members of the defiance camp, who don't
share the same obligations, have no kind
words for Muntu.
One of them, Brian Atuheire, says that
while consultations are okay, Muntu’s
motive is suspect given the timing—after
he had lost an election.
“He (Muntu) has always claimed he
is a democrat however he seems to have
come to the election thinking it was
a must win for him,” Atuheire noted
emphasizing that Muntu’s consultations
should be dealt with carefully and party
members should only go knowing that
they are personal.

“Using a party name to consult
its members while planning to build
another force is what is unacceptable,”
Atuheire added, “There is no company,
political party, organization worth its
name that should recognize people who
want to form a splinter faction to steal
its members. I therefore think that such
consultations should be treated with
contempt.”
Apart from Atuheire, FDC secretary
general, Nandala Mafabi has also been
openly against Muntu’s consultations.
When the consultations had just started,
Nandala wrote Muntu a letter saying his
consultations were not approved and
passed by the party’s National Executive
Committee.
“This is for purposes of harmonizing
party activities,” the letter read in
part, “All activities of the party will be
communicated to you by my office.”
The letter was largely ignored and seen
as biased. Muntu and Nandala have not
been great friends since the former beat
the latter to the party presidency in a
highly divisive election in 2012.
Indeed, the current rifts in the
party partly stem from that election.
While Muntu managed to hold the
party together during his reign, the
contradictions within FDC appear to
have reached a breaking point during the
November 2017 polls in which members
loyal to Kizza Besigye who identify as
the defiance camp voted in Amuriat and
A participant at the consultations in Tororo district.
against Muntu’s side referred to as the
organization camp owing to Muntu’s
leadership style that prioritises nurturing
organizational capabilities. Defiance on
the other hand seems to focus on radical
opposition to government.
After the November elections, many
urged Muntu to form a new political
claiming that he no longer had a place in
the party. However, he defied these calls,
started the consultations, which he says
promise a carefully managed process.
Despite insisting his focus is on
resolving contradictions within the
FDC, occasionally, Muntu drops hints of
quitting the party.
“Even before we form a new party,”
Muntu says, “we must have a list of
values. We must resolve whatever exists
first. If the process is managed well, you
can have a separation in a smooth way.
The overall objective is to take power and
manage it better.”
Muntu also maintains that not all hope
is lost; the two methods of defiance and
building capabilities are not in conflict,
and can be pursued simultaneously.
“In a country without a critical mass of
mature leaders, you do not want to create
paralysis,” Muntu told The Independent,
“Even when you are going through a
divorce, you try to save the relationship.”
So far, many of his followers have been
very supportive with insiders saying that
the funds to conduct the consultations are
raised by supporters.
news analysis
Goldino Nyamugabwa, the FDC youth
chairperson of Ibanda district and an
advisor of Muntu who is travelling with
him says the consultations are about
harmonizing the three competing voices
within the party.
“There are those who believe in
defiance only, those who believe in party
development, and the third group, which
believes the two approaches can work
together,” Nyamugabwa explained.
Like Muntu, he emphasizes the
importance of dealing with the
contradictions afflicting the party to
achieve unity.
However, analysts and even FDC
members argue that it is hard to achieve
common ground with the different
factions in the party.
The attendance of the consultations
is by invitation and civil society actors,
religious leaders, elders, FDC members
and NRM members who are pro-change
have been a part of the meetings.
Nyamugabwa says they hope to
be done with the consultations in a
month’s time and then engage the party
leadership. He explains that they looked
for a way of avoiding situations where
one leader in the party takes power and
then the other goes into the trenches.
However to Atuheire, it is
Nyamugabwa, Muntu and the rest on the
consultative team who seem like they are
not toeing the party line, and therefore
entrenching the contradictions.
March 02 - 08, 2018 21
news analysis
Students of Nakawa Vocational Institute doing a motor vehicle repair practical .   INDEPENDENT/JIMMY SIYA
Opting out of A-Level
More students are joining technical institutions,
many more might be simply falling off
By Ronald Musoke
A
growing number of students is in-
creasingly opting out of Advanced
Level education stirring mixed
reactions amongst educationists
and officials at the Uganda National Ex-
aminations Board (UNEB), The Independent
reveals.
Speaking during the release of the 2017
Uganda Advanced Certificate of Education
(UACE) on Feb.21 in Kampala, Prof. Mary
Okwakol the UNEB chairperson noted that
the trend has persisted since 2014.
Last year, the number of candidates who
registered to sit the A-Level examinations
were 102, 269 compared to 104,243 in 2016.
This represented a reduction of 2,974 candi-
dates or 2.9%, she said.
“The reason is not quite clear, but could
be due to the availability of other post-
Uganda Certificate of Education (UCE) pro-
grammes,” Okwakol said.
Meanwhile, the candidates who went
ahead to sit the examination were 100,066
compared to 102,858 in 2016, a decrease of
2,792 candidates (-2.7%).
According to John Chrysostom Muyingo,
the Minister of state for higher education,
although the number of students at A-Level
has declined since 2014, this should not be
22 March 02 - 08, 2018
interpreted as a case of students dropping
out.
Information available at the Education
Ministry, Muyingo explains, shows that the
number of students at technical and voca-
tional education and training institutions,
teacher training colleges, nursing and mid-
wifery institutions which take UCE gradu-
ates has been increasing.
“It is clear that many students are now
taking this other career path than the UACE
course,” Muyingo said.
Dr. Wilfred Nahamya, the deputy execu-
tive secretary at the Uganda Business and
Technical Examinations Board (UBTEB), the
agency mandated with streamlining, regu-
lating and coordinating examinations and
awards in the business and technical profes-
sion in Uganda supported Muyingo’s view.
He said the number of students pursu-
ing diploma in business and diploma in
technical fields such as engineering and
other specialized fields of agriculture, land,
meteorology and fisheries has been going
up over the last five years.
But available statistics do not appear to
wholly support this view. There is a big dif-
ference between the number of candidates
who sat the UCE and those who sat UACE
the same year over the last three years.
In 2017, close to 320,200 sat UCE com-
pared to 100,066 who sat UACE; in 2016,
there were 316,624 candidates who sat UCE
compared to 102,858 (UACE candidates)
and in 2015, the UCE candidates were
306,507 compared to 99,847 (UACE candi-
dates).
Going by Muyingo and Nahamya’s
view, the bulk of those who did not make
it for UACE should have gone to technical
schools.
Yet the Education Ministry’s report on
the 2012/13—2021/22 “Skilling Uganda”
strategic plan says there is relatively few
school leavers and fewer adult drop outs
accessing organized training especially in
the close to 1000 private and public formal
business, technical, vocational education
and training (BTVET) institutions around
the country. Over all, the current enrollment
in these institutions is projected at slightly
above 110,000.
The report noted that these institutions
are currently taking in only about 1% of P7
leavers; 3% of O-Level and 7% of A-Level
graduates.
During the release of the 2017 Uganda
Community Polytechnic Certificate exami-
nation results on Jan. 30, Prof. Venansius
Baryamureeba, the UBTEB board chairman,
noted that the percentage of students doing
BTVET courses had gone up by 9.7%.

Baryamureeba said the growth in stu-
dents’ enrollment for BTVET courses points
in the right direction for Uganda.
“A tree must be bent while it is young;
you cannot teach an old dog new tricks,”
Baryamureeba said.
Baryamureeba said that as a country,
Uganda needs to aggressively market
vocational education to primary leaving
examination certificate holders so that they
join these polytechnic institutions instead of
waiting for recruitment for UCE or UACE.
Uganda’s education system
The Ugandan education system follows
a 7-4-2-3 pattern; seven years of primary
education, followed by four years of lower
secondary or Ordinary Level, two years of
upper secondary or Advanced Level and a
further three to five years of tertiary educa-
tion. Academic programmes in tertiary
institutions are grouped into universities,
national teachers’ colleges, colleges of com-
merce and technology, and other tertiary
institutions.
Degree programmes are offered only in
universities where students complete a 3–5
year programme with minimum standards.
Colleges and other tertiary institutions offer
certificates and diplomas, and their pro-
grammes usually last 2–3 years.
Currently, there are at least 32 licensed
public and private universities, ten national
teachers’ colleges, 13 colleges of commerce,
seven technical colleges, one forestry col-
lege, two cooperative colleges, three hotel
and tourism institutes, 12 management
institutes, ten health and medical schools,
three agricultural and animal husbandry
colleges, one fishery training institute, one
meteorological school, and four theological
colleges. The 2016/17 Education and Sports
sector annual performance report noted last
year that the total number of primary school
enrollment stood at 8,655,924 pupils while
there were up to 1,457,277 students pursu-
ing secondary education (both O-Level
and A-Level). There is less than 100,000 in
Uganda’s universities and another 110,000
in Uganda’s business, vocational and poly-
technic colleges.
So is it true that students are increasingly
pursuing certificate and diploma courses
at college immediately after clearing their
O-Level?
Sebastian Kairania heads Iganga Techni-
cal Institute in eastern Uganda. He told The
Independent that it is possible the numbers
are increasing in training institutions like his
around the country.
He says since the government improved
the facilities at the institute, the numbers
have shot up to about 600 students, which
is twice the population of the institute, five
years ago.
Kairania told The Independent that he sup-
ports the idea of students branching into
college after S.4. He has already persuaded
his daughter to go and study a hospitality
course in Jinja after she cleared her O-Level.
“I told her that she should not waste her
time (continuing with A-Level),” he said,
“It is better you go through college and
upgrade to diploma or degree level after
you have gained a skill.”
Kairania says university education or
what he calls “the degree farce” was popu-
larized in his time because it was prestigious
to get white collar jobs back then when they
were readily available.
“These days, these kinds of jobs are very
rare,” he says, “Young people can only get
these jobs after those holding them have
either died or retired,” Kairania added with
a chuckle.
He told The Independent that he is in sup-
port of technical and vocational training
because he thinks it can help in correcting
Uganda’s distorted pyramid of skilled
labour.
“A doctor is supposed to work with prob-
ably a dozen nurses while an engineer is
supposed to be surrounded by diploma and
Chrysostom Muyingo Prof. Mary Okwakol
certificate-holding technicians but these are
so few in the country,” he says.
“This is because the institutions that train
these middle-level workers are far too few
and even the intake is quite low.”
He says more awareness is needed to
popularize business, technical, vocational
education and training programmes around
Uganda.
Kairania says most Ugandans are still
stuck with the old system where students
are expected to study from primary, second-
ary and then move onto university yet at the
end of the day, these students get qualifica-
tions but with no skills.
A-Level course a waste of resources?
For Dr. Mary Goretti Nakabugo, the head
of Uwezo— a Twaweza East Africa pro-
gramme that tracks learning and numeracy
outcomes around the region— if the recent
trend is reflected by a direct increase in the
number of students opting for technical
courses in colleges around Uganda, it is a
positive one.
“It is not a negative trend at all; especially
if it is the choice of the students,” Dr. Naka-
news analysis
bugo told The Independent on Feb.22.
“It does not matter where one starts from
because I have seen quite a number of peo-
ple who started off with certificate courses
after P7 and went on to upgrade and they
are really good today.”
“As long as the student pursues a course
where they have passion, they can always
upgrade and get the degree later in their
career.”
But Simon Atagwirweho, 35,a graduate
of laboratory biotechnology from Makerere
University told The Independent that unlike
rich parents; most Ugandan parents are
poor and when they weigh the option of
taking their children to A-Level—a course
which lasts two years—they choose to go
for the other available option (certificate or
diploma courses).
This is what Janet Babirye did in 2010.
After scoring poor grades in her UCE
exams, her hopes of continuing to A-Level
and, thereafter, pursue her dream course at
university (pharmacy) were crashed.
Normally, most Ugandans students
would choose to repeat the candidate class
hoping to do better. Babirye instead chose
to do a two-and-half year nursing and mid-
wifery course at Mengo School of Nursing
and Midwifery in Kampala.
She qualified in 2014 as an enrolled
nurse and midwife and immediately got
employed in a dispensary in Kampala.
Looking back, Babirye told The Independent
that she has no regrets for having forfeited
the two years that she would otherwise
have spent studying at A-Level.
Nakabugo says one advantage of join-
ing college after O-Level is that you can
upgrade afterwards from certificate to
diploma up to degree level in an area where
you have interest.
Nakabugo told The Independent that there
are a number of students in Uganda who go
up to A-Level and continue to university for
the sake of it.
“It is not a matter of looking for a degree;
it is looking for something where one has
interest,” she said.
Nakabugo could be right.
Supporters of vocational and technical
education say people with such skills do
not only boost local enterprises to increase
productivity and profit, such trained people
enable the economy to expand and grow.
Still, Nakabugo says it also good for stu-
dents who are keen on going for A-Level
and have the capacity to go to university.
“But we should not look at the ones
branching off into BTVET after O-Level as a
negative trend,” Nakabugo said.
“You would rather have a change in
attitude where a student says ‘I will go into
BTVET, start work, and upgrade later on in
my career.’”
March 02 - 08, 2018 23
Stanbic seeks to become
Bank Holding Company
The new move will see the lender venture into non-banking business
U
By Isaac Khisa
ganda’s largest lender,
Stanbic Bank Uganda,
is finalising plans to
become a Bank Hold-
ing Company (BHC), a
step that would enable
it access funding more easily but also
tighten capital requirements and regu-
latory oversight.
BHC is a business banking model
where a bank also owns subsidiaries
that are involved in non-banking activ-
ities such as insurance, asset manage-
ment and securities.
Patrick Mweheire, the Bank's chief
executive told The Independent that
they have already submitted applica-
tion to the industry regulator, Bank
of Uganda, for all requisite regulatory
and corporate approvals, including
the approvals of SBU’s shareholders
following the Annual General Meeting
slated for May.
“The creation of a holding company
(‘HoldCo’) that will house the bank
24 March 02 - 08, 2018
and other non-bank subsidiaries will
enable the organisation to provide both
banking and non-banking services to
our customers and ensure a sustain-
able long-term business model for our
future success,” he said.
He said the new business model
will ensure that the bank sustains its
market leadership position and attains
business growth.
He, however, declined to disclose the
type of non-banking business that the
bank plans to venture into once grant-
ed approval to become a BHC.
“Until further announcements
regarding the proposed reorganisa-
tion are made, Stanbic Bank Uganda’s
shareholders and other investors are
advised to exercise caution when deal-
ing in Stanbic Bank Uganda shares,”
Mweheire said, adding that the pro-
posed re-organisation will have no
adverse impact on the bank’s share-
holders, customers and employees.
Yiga Masajja, an executive at BoU
told The Independent the SBU’s new
step is already provided for under the
Financial Institutions Act 2016.
“This reorganization means that
the current bank is going to become
a subsidiary of a holding company in
Uganda,” he said. “Hitherto, it has
been a subsidiary of a foreign hold-
ing company- Standard Bank based in
South Africa.”
This new move follows the bank’s
Board of Directors decision on Feb 14
to recommend to the shareholders that
SBU undertakes a corporate reorgani-
zation to establish a Holding Company
group structure to enhance customer
value proposition while increasing the
returns to its shareholders.
This comes barely three months
since the Insurance Regulatory Author-
ity of Uganda granted it an operating
licence to venture into selling insur-
ance in partnership with insurance
companies.
This development also comes at
the time when the country’s banking
industry projects to register subdued
profits for 2017 owed to low private
sector credit uptake amidst a reduction

in the Central Bank Rate and the sub-
sequent decline in interest rates. Banks
start announcing their annual perfor-
mance this month.
It is on this basis that the Stanbic
Bank directors appears to be looking for
new alternatives to enlarge their scope
of the financial services through diver-
sification of business lines to control the
enterprise-wide risk, making the entity
maintain the profitable growth trend.
Last year, Stanbic Bank recorded a
27% growth in net profit to Shs191.15
billion, up from Shs150.76 billion in
2015 and Shs135.08 billion in 2014 driv-
en mainly by non-interest revenues.
The bank’s net interest income was
Shs376 billion in 2016 compared to Shs-
311billion in 2015 and Shs280 billion
in 2014 while net non-interest income
was Shs267 billion, Shs211 billion, and
Shs214 billion during the same period
under review.
This banking model, however, is not
new. Across the globe, deregulation and
financial consolidation have given way
to the development of Financial Hold-
ing Companies or Bank Holding Com-
panies—allowing commercial banking,
insurance, investment banking, and
other financial activities to be conduct-
ed under the same corporate umbrella.
In the European Union and the US,
for instance, financial conglomerates
are organised through a holding com-
pany model. Australia, based on recom-
mendations of its Wallis Commission,
allowed the holding company model
as part of liberalisation of the range of
activities that can be carried out within
a conglomerate group containing banks.
In Korea, it was the Asian crisis
which triggered the move towards the
holding company model in the financial
sector.
Back in East Africa, Equity Bank and
KCB group became holding compa-
nies with their subsidiaries in Uganda,
Rwanda, South Sudan, Rwanda and
Burundi in 2014. This followed the mid-
sized lender I&M Bank, wholly owned
subsidiary of I&M Holdings Ltd that
had become a holding company earlier.
Vighneswara Swamy’s study pub-
lished in 2013 dubbed ‘Financial
Holding Company Structure in India’
says banks all over the world are now
transforming into a BHC because it
makes it easier to raise capital than as a
traditional bank.
“The holding company can assume
debt of shareholders on a tax-free basis,
borrow money, acquire other banks and
non-bank entities more easily, and issue
stock with greater regulatory ease,” he
says, adding that the model also has a
greater legal authority to conduct share
repurchases of its own stock.
TradeMark East
Africa’s 5-year plan
TMEA hopes to raise $100m within the
next five years to pay for the projects
By agencies
C
onstruction of a new logistic hub in
Gulu, northern Uganda, completion
of a One Stop Border Post along
the Uganda-Democratic Republic
of Congo (DRC) frontier, improvements at
Entebbe International Airport and decen-
tralisation of standards laboratories across
the country are TradeMark East Africa’s
(TMEA) priority projects between now and
2023.
“When you look at the clearing system
at Entebbe Airport and compare it with
the other airports, Uganda is still lagging
behind. We are going to help in building
an automated clearing system so that there
are no delays in terms of
time and money spent at
the airport by traders,”
TMEA Country Director for
Uganda, Moses Sabiiti, said
during a news conference
recently.
Set up in 2010, TMEA is
an East African not-for Profit
Company limited by guar-
antee to support the growth
of trade – both regional and
international.
It is focused on ensuring Moses Sabiiti
gains from trade resulting
in tangible gains for East Africans. It is also
the main channel for major foreign donors
to support regional integration through
increased cross-border trade.
Sabiiti said work on the Gulu facility
is already underway in terms of designs
and plans are that upon completion it will
become a major clearing spot for exports
with the capacity to handle 500,000 contain-
ers.
“Trucks have been bringing goods in
Uganda and going back to Sudan empty
because there was no gazetted spot for clear-
ance of returning trucks. This facility will
allow major agents to clear goods for export.
This will improve on Uganda’s exports as
well as provide job opportunities in north-
ern Uganda,” Sabiiti said.
“Our aspiration is $100million for this
second phase ending 2023. We already have
$25million, but expect more especially from
DANIDA (Danish International Aid Agen-
cy). TMEA Uganda has performed best in
business
the first phase and we expect more support
for the government of Uganda.”
“The first phase of our development proj-
ects which ended last year has been success-
ful with major achievements that have seen
a turnaround in how Uganda as a country
is competing on the regional and global
market. These new projects are also aimed
at dealing with other bottlenecks that are
challenging traders like standards, delays in
processing documents and the cost of doing
business.”
TMEA aims to deliver further reduc-
tions on time and costs of doing business
in Uganda. It hopes to achieve this through
support to Information and Communication
Technology for trade, enhancing coordina-
tion among trade agencies
and up scaling success-
ful interventions such as
Electronic Cargo Tracking
Systems and Authorised
Economic Operators to the
regional level.
In addition, it will encour-
age export-led growth by
supporting the production
of higher value added trad-
able products, supporting
private sector advocacy
focusing on standards, qual-
ity and market access for
high potential products to increase export
capability of Uganda.
To complement this, the programme will
facilitate reforms in technology, skills and
data within the logistics sector to enable
agile, lean and efficient supply chains.
In an interview with The Independent on
the sidelines of the launch of the Busia One
Stop Border Post on Feb.24, Frank Matsaerk,
the chief executive officer for TradeMark
East Africa said, their [TMEA’s] investments
are good news for the region.
He said they aim at increasing trade vol-
umes, create jobs and grow the economies.
He said his next strategy led by the East
African Community is to look at the other
external borders to facilitate trade with other
EAC neighbors.
“Goods and people move across borders
at borders,” he said, adding “…if you can
unlock and reduce the cost of trade you can
really unleash local trade and achieve devel-
opment targets.”
March 02 - 08, 2018 25
business
SGS inspection point at Namboole experienced a drop in number of vehicles for inspection when Parliament started
investigating the process that led to awarding of the contract for the exercise .  Independent/jimmy siya
SGS contract saga
Government yet to decide on fate
of motor vehicle inspection deal
By Julius Businge
T
he Uganda government is in a fix.
Suspend and cancel the contract
awarded to SGS Uganda Limited,
to carry out a motor vehicle inspec-
tion and possibly pay the price for violat-
ing the agreement or stay the contract
amidst any illegality, if at all it exists, and
avoid the compensation.
This appears to have been the circum-
stance that played out during the parlia-
mentary session on Feb 15.
The Speaker of Parliament, Rebecca
Kadaga tasked the Attorney General, Wil-
liam Byaruhanga, to come up with a com-
munication showing the risks or gains that
would emerge in case the inspection exer-
cise is suspended or contract cancelled.
This followed two recently released
reports– the Majority and the Minority
Reports that were compiled by legislators
on the Physical Infrastructure Committee
– in Parliament recommending suspension
26 March 02 - 08, 2018
and cancellation of the contract respective-
ly. The fate of the exercise is expected to be
known this month.
The legislators say the events and proce-
dure that led to the signing and awarding
of the contract to SGS on March 17, 2015
were improper.
But there is a heavy cost for taxpayers to
meet in case government buys the recom-
mendations of the committee especially
one in the minority report – that recom-
mends cancellation of the contract.
According to the report, this particular
contract termination or cancellation for any
cause, except as provided in the contract,
the government would pay SGS 75% of the
value of total investments made or 100%
of the expected income of the company. So
far, SGS is said to have invested Shs51.2bn,
according to the reports, though the com-
mittee claims that it doubts the figure.
This implies that the government could
pay up to Shs38bn in case the contract is
terminated or higher in case it has to pay
all the expected income by SGS for the five-
year contract.
“The committee notes with concern that
while it may be considered prudent busi-
ness to insulate private owners of capital
from possible loss in doing business with
government, using such contractual claus-
es, there has emerged an unscrupulous
habit among public officials of saddling the
country with the risk of exorbitant costs
even when some of the clauses of such
contracts are potentially bogus,” the report
reads in part.
Key issues in the reports
Among the key issues in the contract
was that SGS was to have seven sites.
However, the reports indicate that only
three sites are operational and that SGS
would still not be ready for the commence-
ment of inspection two years after signing
the contract. This, MPs said, points to sig-
nificant capacity gaps on the part of SGS.
The other issue is the possible con-

nivance between the ministry of works
officials and SGS staff for material gain. To
make the situation even worse, the Solici-
tor General was not involved in drawing
the contract which is unlawful.
The MPs also noted inadequate intra-
governmental coordination in the imple-
mentation of the contract; the absence of
a master centre that would provide an
avenue for arbitration and adjudication
in case of disputed test or allegations of
fraudulent cases.
In addition, the legislators were not com-
fortable with the clause in the contract that
suggests automatic renewal of the contract
for five years. Instead, they recommended
that the clause be revisited with a view
of cancellation of the automatic renewal
clause so as to guard against any potential
losses to the country in the event of failure
by SGS to meet the agreed upon perfor-
mance targets.
On creating jobs to Ugandans, the legis-
lators say, the eight envisaged inspection
sites would only create around 150 jobs,
meaning that the multiplier effect of job
opportunities accruing to such machinery
intensive exercise is grossly limited and yet
the monopoly of the service provider takes
home their entire profit from the 90% gross
revenue since only 10% is transferred to
government.
The committee also recommends that
the 10% fee that is remitted to government
through the ministry of works should,
instead, be remitted directly to the consoli-
dated fund.
They also recommend that inspection
fees – which range between Shs 944 to
Shs 147, 500 depending on the type of the
vehicle – be reduced to ensure affordability
and equity for all vehicles, in addition to
liberalising the system of motor vehicle
inspection.
The other recommendations are that the
AG should be cleared to audit the invest-
ments by SGS to verify the figures submit-
ted to Parliament so as to attain value for
money, physical and financial performance
and that other government agencies –
Uganda National Bureau of Standards,
Uganda Police Force and National Envi-
ronment Management Authority be
involved in supervising the works.
“…we recommend that the implemen-
tation of the contract is immediately sus-
pended for a period of not less than three
months to enable review and renegotiation
of the contract by the ministry of works,”
the majority report concludes.
Similarly, the minority report summarily
among other things says the main reasons
behind the exercise were not well thought
about. It notes that the defective motor
vehicles, which SGS is inspecting, account
for only 2.1% of the road accidents, accord-
ing to Uganda Police Force data, which is
far below the 10% which the ministry of
Rebecca Kadaga
''We recommend
that the
implementation
of the contract
is immediately
suspended for a
period of not less
than three months
to enable review
and renegotiation
of the contract ''
works used in justifying continuity of the
inspection exercise.
“Far from suspension, the contract with
SGS requires immediate termination to
pave way for a total overhaul of the defec-
tive vehicle inspection environment char-
acterized by the absence of a master test
centre, inept monitoring and supervision,
exorbitant pricing and the absence of func-
tional synergies with other key actors,” the
minority report says.
Purpose of the inspection
The whole idea of Motor Vehicle Inspec-
tion exercise is to improve road safety and
reduce road accidents caused by vehicles
in dangerous mechanical condition.
It is also about keeping the environment
safe by addressing key aspects like emis-
sions testing in accordance with the current
recommended emissions standards.
The other big objective of the exercise
business
is to ensure that vehicles comply with
the traffic and road safety (Motor Vehicle
inspection) regulations of 2016 and the
standards set by the ministry of works and
transport in the “Manual of Vehicle Inspec-
tion” as well as other recognised interna-
tional road-safety standards.
Vehicle owners were given up to June
2017 to have successfully gone through the
inspection exercise and obtained certifi-
cates of inspection to avoid being inconve-
nienced by traffic police on the road.
But the deadline was extended until
further notice as Parliament went about
investigations into circumstances that sur-
rounded the awarding of the contract to
SGS Uganda Ltd.
SGS boss speaks out
Christophe Dubois, the country manag-
er for SGS told The Independent on Feb.23
that they are waiting for an important com-
munication.
“We are yet to receive official commu-
nication from the Government of Uganda
regarding the result of the parliamentary
review that has taken place since June
2017. In the meantime, SGS remains com-
mitted to contribute to the national road
safety program by offering a state of the
art service with a view to improving road
safety in Uganda,” he said.
Without specifics Dubois, however, said
Parliament’s proceedings on the matter
had affected the exercise with the inspec-
tion numbers significantly dropping to a
handful of cars per day.
He said that by February 2018, they had
inspected approx. 35, 000 vehicles – out of
those, 78% had passed the test and 28%
failed. It is estimated that Uganda has over
1 million motor vehicles on the road.
But as the SGS waits for government’s
official communication on the matter,
opponents of the exercise have welcomed
the two reports from Parliament.
Andrew Karamagi, a lawyer who in
the past attempted to block the exercise in
courts of law told The Independent that
he ‘disagrees with the majority report’s
proposition to halt the exercise for three
months because nothing can be done to
salvage that contract.’
“It was and still is so badly steeped in
outright illegality, collusion and fraud that
the only remedy is to terminate the same,”
he said, adding that the government need
to stop the trend of the so-called investors
coming into the country and threatening
with compensation claims in case the gov-
ernment pulls out of contracts.
Karamagi said that individuals respon-
sible for such dubious dealings must face
the full force of the law.
“It can’t be business as usual…terminat-
ing that contract will sound a warning shot
which will be loud and clear,” he added.
March 02 - 08, 2018 27
 Executive Style
Slow oil and gas development
hurts logistics industry
What is your management
style as the managing di-
I
rector?
am a strong believer in
human resource in an
organisation, and as
such, I spend a lot of my
effort and focus in ensuring
that we attract, develop and
retain the best talent.
What is your assessment
of the performance of the
logistics industry in Ugan-
da and the East African
region?
The past two years have
not been good for the
logistics industry due to a
number of factors ranging
from political instability in
the neighbouring countries,
elections in Kenya, breakdown
of the rail operations and gen-
erally the slow growth in our
economy. Many companies
in the industry had invested a
lot in anticipation of increased
activities and projects in the
region but this did not come to
fruition rendering vital assets
idle and reduced profitability.
However, the tide is slowly
changing though along with
another trend of new global
players entering the market in
preparation for the production
phase in the oil and gas sector.
What products do you offer
as Kenlloyd Logistics Uganda
Limited? Who are the target
clients?
Kenlloyd Logistics Uganda
Limited is a network partner
of the German’s logistics
global giant, DB Schenker,
and being part of this global
network enables us to provide
a number of services including
door to door services with air
or sea, road and rail options,
warehousing and distribution
and customs clearance and
consultancy. Our target clients
are but not limited to project
contractors, manufacturers,
and companies involved in oil
28 March 02 - 08, 2018
and gas.
The East African countries
are currently investing in the
Standard Gauge Railway.
Does that worry your opera-
tions in the region?
SGR is another measure of
facilitating trade in the region.
Therefore it cannot be a worry
to freight forwarders instead
it will make cost of doing
business lower in the region
in the long run. SGR will also
increase our carrying capacity
for both imports and exports
thus enabling us to move more
cargo within a short period.
How are you prepared to
venture into the oil and gas
sector as a logistics firm ahead
of production few years to
come?
Being a 100% Ugandan
owned company with a
partnership with a Global
player – DB Schenker known
for experience in the oil and
gas sector elsewhere, we are
in good position to offer the
needed services during the
production.
Together with our partners,
we have embarked on put-
ting together experienced and
Joram Nyanzi
is the managing
director of
Kenlloyd
Logistics
Uganda Ltd. He
spoke to Isaac
Khisa about the
performance
and prospects
of the region’s
logistics industry
competent teams, worked on
our work procedures to get
the right certification as well as
come up with plans to increase
or improve our capabilities.
We are continuously net-
working locally, in the region
and internationally so that we
are able to put together com-
bined resources good enough
to service the expectations of
our clients during this oil and
gas production.
Customs across the region
have worked on a number of
initiatives including seamless
customs clearance and cargo
tracking online. How have
these initiatives impacted on
your operations and so is the
revenue growth?
These initiatives have made
our work easier and faster thus
reducing on the extra costs to
us and our Clients. At locations
where customs is working
24 hours, we are able to turn
around more customs entries
than before as well as access
the customs system anytime.
With increased number of
transactions comes increased
revenue collected. Though
there are teething problems to
these initiatives, I would say
we are moving in the right
direction when it comes to
Customs facilitation to our
business.
What are your key strate-
gies for the growth of Kenl-
loyd logistics in Uganda?
We intend to strengthen
our business partnerships so
that we remain strong and
improve on our combined
processes so as to serve our
clients better. Kenlloyd has
embarked on investing in it’s
human resource by attract-
ing the best in the market,
training and extending their
exposure to foreign best
practices in the market so as
to enable our team to be at
par with other teamsworld-
wide.
What are some challenges, if
any, that Ugandan logistics
industry face as it strives for
growth?
Political instabilities in
South Sudan and DRC tend to
reduce the volume of cargo we
move in and out of the coun-
try. High financing costs also
affects growth of indigenous
companies such as ours.
What is the future outlook of
the region’s logistics indus-
try?
The region’s logistics
industry is going to be about
coming up with the right part-
nerships than compete against
each other. The challenges
ahead demand huge invest-
ments and few companies
are in position to risk it all
on their own. The upcoming
projects are too big for one or
two logistics players to do on
their own. Dependence on
modern technology is there-
fore going to increase and
those who are better equipped
will dominate the market.

Retail
Uchumi Supermarkets’ losses increase
B
usiness seem to be worsening at the
retail chain, Uchumi Supermarkets.
Latest data shows that the retail
chain recorded a 63.5% growth in
net losses to US$8.95million for the half year
Finance
Kenya raises US$2bn in new Eurobond
O
n Feb 22, Kenya’s Treasury said
it raised US$ 2 billion in a new
sovereign bond issue listed at the
London Stock Exchange (LSE).
The Treasury said the Bond attracted a
significant level of interest leading to over
subscription.
“This issue was seven times
oversubscribed. And makes it one of
the highest order book for an issue from
Africa,” it said in a statement.
trade
Tanzanian loses appeal
to block EPAs
T
he East African Court of Justice has
dismissed an appeal filed by Castro
Pius, a Tanzanian national, seeking
to block the East African Commu-
nity from signing the Economic Partnership
Agreement (EPA) with the European Union.
The Court said the appellant’s conduct in
seeking to communicate to through the hotel
is a disrespectful attitude and it amounts to
the abuse to the Court process.
Castro had also sought the countries
which had already penned their signatures
to the agreement be stopped from carrying
out any further procedures and processes.
The case was earlier dismissed by the
First Instance Division of the Court last July
which led to the applicant to file an appeal to
the Appellate Division.
This comes at the time EAC coun-
tries are still in negotiation on wheth-
er or not to append their signatures on
EPAs with the EU.
ended Dec 2017 citing reduced sales.
The listed company recorded a net loss
of US$ 5.47 million the same period in the
previous year. The retails chain’s revenues
declined 71.4 % to $5.27 million from $18.5
million similar period in 2016.
However, administrative expenses fell
15.5 % to $10 million. Uchumi has struggled
to raise new capital to fund its operations
which have been hit by closure of branches
and stock-outs.
Since 2015, it has closed 24 out of 40
outlets including exiting the Tanzania and
Ugandan market where it had four and six
outs respectively citing prolonged periods
of loss making.
“The successful issuance confirms the
continued vibrancy of our economy, and
the fact that investors consider Kenya a
go-to destination for their investments.”
The bond was arranged by a consortium
of banks including the Citibank, JPMorgan,
Standard Bank and Standard Chartered
Bank. This was the second time that the
East African nation was issuing a Eurobond
in four years. In 2014, Kenya raised
US$2.8billion from international investors.
banking
Kenya plans to repeal rate cap law
Henry Rotich
K
enya’s Treasury Secretary,
Henry Rotich, has indicated
plans to repeal the rate
cap law as part of the
contentious reforms demanded by
the International Monetary Fund to
extend a frozen Kshs 153bn emergency
business
trade
COMESA to boost
regional seed trade
T
he Common Market for Eastern and
Southern Africa, is set to introduce
the use and distribution of seed labels
and certificates as a way of improv-
ing access to quality seeds in the region.
This is because more than 130 million
people in the region are currently food
insecure and experiencing chronic poverty
and hunger for failure to get quality and
improved seed.
The Assistant Secretary General in charge
of Programmes at COMESA, Kipyego Chel-
uget, said out of 80 million small-holder
farmers in the block, only 20% have access to
quality and improved seed.
“The potential total seed market in
COMESA is at two million metric tonnes of
quality and improved seed,” he said.
“However, the region is currently produc-
ing and accessing less than 520, 000 metric
tonnes of quality and improved seed. This
has continued to impact negatively on the
people.”
This challenge, he says, is attributed to
the fact that, the regional seed market is
fragmented into small national markets,
whereby each country operates its own seed
policies and regulations different from other
COMESA Member States.
As a result, seed companies enter any of
the national seed markets available. This is
not only costly to the private sector but also
results in prolonged delays before good
quality seed can find its way to the farmers.
standby facility that expires this
month.
The facility, which is designed to
alleviate a balance of payments crisis,
had been suspended in June last year.
Jan Mikkelsen, the IMF’s Kenya
resident representative, said a cut
on the budget deficits and review of
the legal lending cap were “key” to
extending the facility.
The Kenyan government in
September 2016 capped commercial
lending rates at four percentage points
above the central bank’s benchmark
rate, which stands at 10%, and put a
minimum deposit interest rate of 70 %
of the benchmark.
This followed the review of the
Banking (Amendment) Act 2016 at a
time when the average interest rate
stood above 18 %, a level that was seen
as unaffordable for the dominant SMEs.
March 02 - 08, 2018 29
business

Uganda’s telecom market too

small for seven players?
By Isaac Khisa rolled out 4G data services.

S
enior executives in
Uganda’s leading tele-
com companies have
always said that the
country’s mobile phone mar-
ket has room to grow but it is
too small to support all of the
seven telcos.
And the assertion seem to
have come to pass, with the
British based telecom, Voda-
fone, securing a bankruptcy
USPA president, Sabiiti Muwanga (R) congratulates one of the winners of protection.
the 5th Dubai Desert Challenge draw, Henry Kironde, at City Oil, Nakawa The High Court Civil Divi-
on Feb 23, 2018.   INDEPENDENT/JIMMY SIYA sion in Kampala issued a
protective order on Feb 15 to
enable the ailing company
explore options for recovery.
The same order confirmed
the appointment of Donald
Nyakairu as the company’s
provisional administrator.
This comes barely three
months since the company’s
management including the
Chief Executive Officer,
John Ndego and Marketing
Director, Progress Chisenga,
resigned at the end of last year.
Vodafone Group entered
the Ugandan market in 2015
in partnership with Afrimax
Group, and subsequently
Passengers aboard a train at the Kampala Railway Station on Feb 26, 2018. The
railway services was reverted to the Ugandan government upon cancelling the
concession with the Rift Valley Railways last year.   INDEPENDENT/JIMMY SIYA
Vodafone’s new move
comes nearly a year since
Uganda Telecom was placed
under receivership in April
2017 to save it from folding
Whereas its subscriber base
and revenue remain scanty,
MTN and Airtel controls about
21 million out of the country’s
23 million mobile subscribers,
according to the Uganda Com-
munication Commission.
MTN recorded a 6.2%
growth in revenue to Shs-
715bn while Airtel net profit
grew 85.6% to Shs 160.5bn in
2016 owed to high uptake of
mobile money, value added
services and data.
Vodafone’s new step could
signal easy prey for acquisi-
tions as it has been the case
with the previous companies –
Warid and Orange Telecom.
Airtel bought Warid
Uganda in 2013 to become
Uganda’s second-biggest tele-
com operator after MTN.
Orange Uganda, owned
by French company Orange,
was sold to Africell in 2014,
and there are indication that
more could be on their way for
acquisitions as stiff competi-
tion erode their profits.

Weekly share price movement (Feb 27)

Security Feb 27 Feb 20 Movement
BATU 30,000 30000 00
BOBU 120 109 10
CENT 1,704 1,650 3.3
DFCU 683 682 0.1
EABL 8,611 8,862 2.8
EBL 1,542 1,533 0.6
JHL 17,975 17,940 0.2
KA 556 574 13.1
KCB 1,632 1,632 00
NIC 15 15 00
NMG 3,695 3,767 0.7
NVL 510 510 00
SBU 29 29 00
Guests view a lion at the Kampala Sheraton Hotel during the Pearl of Africa UCHM 107 111 3.6
Tourism Expo on Feb 25, 2018..  INDEPENDENT/JIMMY SIYA UCL 29 29 00
UMEME 405 410 1.2
ALSI -- -- --

30 March 02 - 08, 2018


By Biniam Bedasso
Africa’s fallen liberators
South Africa and Ethiopia's dominant political parties
grew complacent and corrupt, and suffered decay
T
he leaders of two key African coun-
tries resigned their posts within 24
hours of each other recently.
South Africa’s Jacob Zuma finally
buckled under pressure from his own party
to resign the presidency on Feb.15. The
following day, Ethiopian Prime Minister,
Hailemariam Desalegn, announced his deci-
sion to step down in the face of sustained
mass protests and political turmoil.
But whereas post-apartheid South Africa
created robust institutional safeguards,
Ethiopia, after the end of Mengistu Haile
Mariam’s dictatorship, never built national
institutions that could save the country
from its rulers.
In both cases, two of the oldest liberation
parties in Africa, which have remained in
office since first coming to power a quarter-
century ago, were forced by deep popular
discontent to push their leaders aside.
The historical trajectories of both parties
are largely similar. Nevertheless, the effects
of their leaders’ exit could not be more dif-
ferent.
Yes, both the African National Congress
(ANC) in South Africa and the Ethiopian
People’s Revolutionary Democratic Front
(EPRDF) grew complacent and corrupt,
and suffered political decay, over the past
quarter-century.
But whereas South Africa had put in place
a robust set of institutional safeguards in the
wake of its transition from apartheid, Ethi-
opia, after the overthrow of Mengistu Haile
Mariam’s dictatorship, never managed to
build national institutions strong enough to
save the country from the ruling party.
Despite obvious differences in the two
countries’ histories and economic condi-
tions, the way their dominant parties
conduct business, and the economic model
they claim to have adopted, are strikingly
similar.
Both the ANC and the EPRDF espouse the
Leninist principle of democratic centralism,
according to which party members are
expected to abide by the policies established
by the central party leadership.
Both parties deploy cadres widely to
ensure that the civil service carries out polit-
ical decisions. More recently, party elites
in both countries have moved to embrace
heterodox economic policies.
The ANC has been accused of losing
touch with its impoverished voters in one
of the most unequal countries on earth.
Making matters worse, the massacre in 2012
of 34 miners by Police in Marikana revived
memories of the apartheid regime’s con-
tempt for blacks.
Regardless, the ANC, accustomed to win-
ning well above 65% of the vote (mainly
owing to its liberation credentials), con-
tinued to back the embattled Zuma, who
faces accusations ranging from bribery
to rape. Governance deteriorated as the
economy stagnated and corruption and
state capture proceeded apace. The party
of Nelson Mandela risked succumbing to
internal rot – and taking the country down
with it.
Meanwhile, in Ethiopia, the EPRDF
harangued the public about how it freed the
country decades ago from a brutal military
dictatorship, even as millions of young
people born and raised under the party’s
rule face crippling unemployment.
The EPRDF continues to imply that any
failure by its leadership does not under-
mine its right to govern the country, while
political challenges by opposition groups
are portrayed as treasonous. Like the ANC,
the longer the EPRDF remained in power,
the less it could imagine Ethiopia without it
at the helm.
When Zuma announced his resignation,
the South African Rand jumped to a three-
year high. But after Desalegn announced
his decision to step down, Ethiopia’s dollar
bond fell to a six-month low. These indica-
tors, however, are just the start of the diver-
gent implications the two resignations have
had for their respective countries’ politics
and economics.
The ANC and EPRDF, like many of
Africa’s liberation movements in the 1960s,
stopped responding to evolving political
and economic demands, while predatory
politicians and their cronies hid behind the
party’s banner.
But while Zuma’s successor, Cyril Rama-
phosa, promised a “new dawn” for South
Africa when he addressed Parliament
within days of Zuma’s resignation, Ethiopia
declared a state of emergency around the
same time, amid widespread concern about
whether the state would survive the ethni-
cally charged power struggle to succeed
Desalegn.
COMMENT
The crucial difference is that South Africa
had visionary leaders who were aware of
the danger that an out-of-touch dominant
party could pose. Mandela reportedly
urged newly enfranchised black South
Africans, “If the ANC does to you what
the apartheid government did to you, then
you must do to the ANC what you did to
the apartheid government.” This sentiment
was reflected in the democratic checks and
balances enshrined by South Africa’s post-
apartheid constitution.
Ethiopia, however, has not been so
fortunate, particularly because the cur-
rent regime spent its first decade in office
shoring up its precarious power base and
fighting a war with neighboring Eritrea.
But the EPRDF made matters worse by
undermining the constitution that it helped
promulgate, and appearing to have no plan
for nation building beyond supposedly
rectifying historical inequalities between
ethnic communities (though it succeeded
in stimulating faster economic growth than
the country had ever recorded in modern
times).
The most telling indicator of how differ-
ently the two countries’ democratic institu-
tions responded to the perceived decay of
their dominant parties is the recent election
results. The ANC kept losing electoral
ground to rival parties as its leadership
failed to manage South Africa’s multifac-
eted problems. It was to stem further elec-
toral losses that the party decided to push
Zuma aside.
The EPRDF, by contrast, turned Ethiopia
into a de facto single-party state. The country
began its descent into political turmoil a few
months after the party claimed to have won,
together with its allies, all parliamentary
seats in the 2015 elections.
South Africa’s democratic institutions
appeared to have saved the ANC from
itself. Ethiopia is unlikely to be so fortunate.
Too few institutional guardrails have sur-
vived the neglect or active dismantling that
the EPRDF brought about.
Biniam Bedasso is a Global Leaders Fellow at the
Blavatnik School of Government, University of
Oxford
Copyright: Project Syndicate, 2018
March 02 - 08, 2018 31
COMMENT
By Herbert Lugaba
RDF’s socio-economic model lessons
How the Rwandan army has played a
pivotal role in rebuilding the country
R
ecently I stumbled upon an article
detailing how Shyira Hospital in
Nyabihu District, Western Province
came to be and I could not help
but be enthused and humbled by the way
Rwanda as a country has been able to deal
with insurmountable challenges over the
years.
From the story, I understood that in
March 2016, President Paul Kagame
pledged a state-of-the-art hospital to
the people of Nyabihu to save them the
trouble of traveling long journeys to
access healthcare in far-flung parts of the
country.
There was very little time to deliver
the project. When the Ministry of Health
called for bids, the bidder who would
deliver the project at the earliest wanted
at least 36 months to have it done, and at
a humongous cost of Rwf9bn.
It almost proved impossible to have
the hospital built within the desired
timeframe and at a reasonable cost that
would not stretch the country’s ‘bud-
geted’ resources.
In came Rwanda Defence Forces (RDF)
Reserve Force and it offered to build the
hospital in a record time of 12 months
and guess what? At a cost less than half
of what the lowest bidder was asking for.
Indeed, the government handed the
project to the armed forces and 12
months later, on July 4, 2017 –Liberation
Day, the Head of State unveiled the state-
of-the-art health facility which is cur-
rently serving over 200, 000 people from
Nyabihu and beyond.
The RDF Reserve Force completed the
project at a cost slightly above Rwf4bn
saving the country at least Rwf5bn, had
the state considered handing the task to a
private contractor.
I recently visited the facility and I can
confess that it is not just a health facility
but it is also an architectural marvel.
The quality of the infrastructure is
unmatched and it is hard to believe that
it was achieved at the aforementioned
cost.
As we approach the 24th Commemora-
tion of the 1994 Genocide against the
Tutsi, one has to look at Shyira Hospital
and hundreds of other projects RDF has
executed over the last 23 years, to under-
32 March 02 - 08, 2018
stand the contribution of the army to
the socio-economic development of the
country.
When we were growing up, the stories
and experiences we had were such that
the armed forces of the past, were per-
petrators of terror in most African coun-
tries. Soldiers used guns to have their
way, robbing innocent civilians, shed-
ding blood with impunity or engaging in
all forms of corruption.
RDF has singlehandedly changed the
way the army is viewed by the public
not only on the continent but worldwide,
and I can personally confess that if it was
not for the aspect of age, I would gladly
enlist myself into the armed forces and
serve my country.
Right after ending the 1994 Genocide
against the Tutsi, RDF knew one thing
–Rwanda did not have a lot of resources
and neither would it depend on for-
eigners to reconstruct the nation which
was in shambles.
The army played a leading role in
rebuilding the country –from roads and
bridges to schools, health facilities and
preserving the environment, the work of
RDF has been outstanding all through.
Even today, the RDF still plays a piv-
otal role of bridging the gaps whenever
they are called upon, including emer-
gencies. As such, the army has built
over 500km of roads across the country,
thousands of classrooms, health centres,
health posts and biogas projects, to men-
tion but a few.
RDF’s niche has been delivering proj-
ects where everyone else has failed and
in a very short time as was the case for
Shyira Hospital.
It is this experience and commitment
that ensures that the RDF is called upon
whenever landslides sweep away vital
roads and bridges because they will
restore them quickly.
As records would show, over the
last two decades, the government has
encountered challenges in its efforts to
provide shelter for genocide survivors
and vulnerable households mainly
because private contractors would col-
lude with local government officials to
do substandard work, costing the state
billions.
It was not until RDF was handed the
task of building houses for genocide
survivors and Intergraded Development
Programme (IDP) model villages across
the country that this challenge was
addressed.
Since then, thousands of houses have
been built, complete with cattle sheds
and good roads.
The RDF has also been pivotal in
preserving the country’s environment,
planting millions of trees, putting in
places thousands of hectares of radical
terraces and ravines as well as water
sheds on rivers.
This laborious work of the armed forces
has also tremendously contributed to
agricultural transformation in Rwanda
over the last 23 years, making the
country food secure.
As a matter of fact, the army has con-
tributed over Rwf215m to the One Cow
per Family -Girinka programme.
One cannot assess RDF’s contribution
to Rwanda’s socio-economic develop-
ment without assessing the role of the
army in healthcare provision. In fact
today, one can rightly argue that the
army is at the forefront of ensuring
access to healthcare.
Thousands of Rwandans have benefited
from outreach services and free surgeries
offered by army doctors during the army
week,while Rwanda Military Hospital
(RMH) continues to offer tertiary medical
care at an affordable cost for ordinary
Rwandans.
While RDF has a constitutional man-
date to participate actively in the coun-
try’s development, it is not often that
we see the army contribute effectively to
national development in many countries.
As we approach 25 years of the
existence of RDF next year, many
countries should think of how they can
replicate the ‘RDF model’ because it has
become more apparent to us that the
role of the army goes beyond ensuring
safety and security.
The writer is a publisher, consultant and free
thinker.
Email: hlugaba@gmail.com
National Medical Stores’ Kamabare guides American ambassador Deborah Malac on a tour of the facility in Entebbe. Obsolete medicines will be
temporarily deposited at the facility before being taken for incineration.   Independent Jimmy Siya

Expired drugs; who is to blame?

NMS innovates as critics call for improved forecasting of drug needs

A
By Flavia Nassaka
Feb.12 Ministry of
Health announcement
that expired drugs to
the tune of 1500 tons
in stores at 6619 health
facilities across the
country would be incinerated has
incensed many. Critics wonder how
such a volume of drugs can expire in
a country that suffers constant stock
outs.
The previous month, Civil Society
Organizations that advocate for
people living with HIV had held a
press briefing calling on government
to provide people with Anti-retroviral
drugs (ARVs) warning of a bigger
danger of drug resistance.
Many patients were skipping their
doses for they couldn’t find these
lifesaving drugs at their facilities.
Those in need of ARVs were perhaps
the loudest. But many people continue
going to especially public health
facilities only to be given prescriptions
to buy drugs from private pharmacies.
The ministry’s announcement,
therefore, has raised questions of why
and what exact drugs were expiring in
stores.
When asked, Moses Kamabare,
the General Manager National
Medical Stores (NMS), an entity that
is mandated to procure and supply
drugs to public health facilities across
the country said they were not sure
of what exact medicines had expired
as they were yet to collect them from
facilities.
“We are not sure,” he said, “They
might be supplies like syringes, gauze
or gloves. Medicines expire because
they have an expiry date. Everything
that has an expiry date is prone to
expire and we just can’t have 100%
consumption.”
Apart from Kamabare, Dr. Diana
Atwiine, the Permanent Secretary in
the Ministry of Health, also said it is
naturally expected that about 5% of
pharmaceuticals in the distribution
chain end up expired.
But, a report released in January
from an internal audit – Statutory
Internal Audit Report for the first
quarter 2017/18 commissioned by
Kampala City Council Authority
(KCCA), pointed to what tends to lead

March 02 - 08, 2018 33

health
to these sorts of problems.
The study found that most of the
drugs that were expiring in health
facilities managed by the authority
had been delivered to them just a few
months from their expiry dates.
Some of the medicines that were
found expired included a HIV drug
– Nevirapine syrup that had been
supplied to Komamboga Health
Facility in October 2016. Of the 810
bottles supplied, 599 bottles had
expired before use by November 2016.
Also, according to the report, NMS
had supplied 36 units of a laboratory
reagent HumaCount to Kisugu Health
Center III but only one unit was used
and the rest expired a few months
later.
While appearing on a TV talk
show, Kamabare said this continues
to happen across the country because
facilities cannot anticipate with
exactness what they will need and,
therefore, rely on their best estimates
from previous experiences.
“NMS respects the signature of the
in-charge of the facility for every order
that they place,” Kamabare said, “We
give them what they ask for and they
use the raw data that is available to
them to make orders.”
He noted that there has been good
progress with their forecasts that now
the medicines they are incinerating are
much lower quantities than they used
to.
The country last incinerated
medicines and medical supplies
in 2012 and about 6000 tons were
disposed of at Luwero industries in
Nakasongola. The current 1200 to
1500 tons to be disposed according to
Kamabare shows progress in making
appropriate predictions.
But according to Dennis Juuko a
Programs Director at a local NGO
Center for Health Human Rights and
Development (CEHURD), a situation
where thousands of drugs expire, is
alarming for a resource constrained
country like Uganda. He says it shows
a gap in planning and that healthcare
managers are putting money in wrong
priorities.
Juuko has also refused to accept
excuses by officials that some of the
drugs expire because they are donated
by donors irrespective of what the
country needs and can absorb. He says
government needs to work with donors
to identify areas most in need so that
they can send medicines that will be put
to use.
“It is true that NMS supplies
depending on what health facilities are
ordering but are these people doing
the right quantifications? Do they
34 March 02 - 08, 2018
Dr. Diana Atwiine
Moses Kamabare
have the capacity to forecast? Juuko
wondered adding that sometimes
orders are made without considering a
facility’s real absorption capacity.
But Kamabare explains that the
issues surrounding the expiry of drugs
are sometimes beyond their control.
He, for instance, says at times drugs
imported in the country especially to
be used in medical camps are left over
medicines that are about to expire.
Although these have no harm, he says
they raise a risk of the government
spending on their incineration.
He notes that another challenge is
that some new drugs have a shorter
life span—made to be in use for
six months—unlike others that are
designed to expire in three years.
Because of the challenges of drug
lifespan, the government last year
released new guidelines requiring drug
dealers and procurement agencies not
to import drugs that have less than a
year to expire such that it allows them
a longer time to be used in the country.
NMS to launch forecasting tool
With such challenges, NMS has
come up with more innovative ways
of forecasting drug needs. Among the
solutions, is an IT tool that they say
will be in use this financial year. The
tool will be used to retrieve data about
a particular facility and its drug needs,
in as short as just five minutes.
Although the tool won’t solve all
the challenges, Kamabare told the
Independent its additional ammunition
for it will increase visibility since it
will be easy to see which facilities have
excess and which ones have shortages
because the medicines being supplied
will be easily traced.
For now, critics and officials
agree that having expired drugs in
circulation poses a risk of public
health hazards, pilferage, and
re-labelling as a result of keeping
such items in health facilities for long.
Atwiine says expired pharmaceuticals
are a growing concern in the country
and she fears it can result into a risk to
national security.
 ART | BOOKS | SOCIETY | TRAVEL | CULTURE
Lecturers step out of the
comfort zone after 22 years
T
By Dominic Muwanguzi
he board game (Omweso) is a
gendered installation that high-
lights the patriarchal nature of
the African traditional society.
As such, it is a game that is
only reserved for the male spe-
cie and women are forbidden from playing
it because they have to perform household
duties.
This form of gender inequality is an
extension of the many taboos women face
in traditional African household.
In response to this traditional stereotype,
Dr. Rose Namubiru Kirumira sculpts an
installation of saucepans titled Entamu,
Esefuliya,Essepiki to demonstrate both the
notion of gender inequality in the home
and  how traditionally women played the
Omweso in the kitchen using cooking pots
without the knowledge of their husbands.   the woman,
Incidentally, the latter manifests, how
intelligent women were, albeit the stereo-
type that they were not smart enough to
play the game. While navigating the rela-
tionship between Omweso and the home
space, the artist deploys new and burnt
sauce-pans, and barbed wires to evoke a
figurative narrative on the subject of gender
imbalance to the audience.
The burnt sauce-pans contribute to the
common-placed belief that by playing the
board game, women would neglect their
household chores including cooking. The
burnt cooking pot is a symbol of that negli-
gence in the home.
The barbed wire on the saucepans,
demonstrates the idea of restriction,
and the new sauce-pans in the instal-
lation are a metaphor to opening up
new possibilities of women playing the
Omweso, which incidentally the artist’s
mother played in secrecy in the kitchen.    not only fresh works, but in emphasizing
Such imagery is also evident in Dorah
Kasozi’s installation of paper beads titled
Rejection Strikes Back 2018. The artwork
is an inspiration from the women beaders;
those who get contracts from corporations
to make paper-beads to sell in the external
market.
Often times, those beads that do not
meet the standards of these companies are
rejected, yet the women end up selling them
to individual buyers on the city streets. Such
experience can be interpreted as a figurative
narrative to the subject of women empow-
erment socially, economically and some-
times politically. Through sculpting these
paper beads, women are able to negotiate
for power in positions that are tradition-
ally specified for  men. More so, the idea of
adopting the discarded materials into their
personal life- selling them to individuals to
make ends meet- resonates with the concept
of how women can play crucial roles in
society, in spite of being considered worth-
less or inferior by the male.   The technique of dressing him in military
Nonetheless, the different textures
deployed in the installation immediately
conjure the diverse potential women have
in the community,
and also provide a
narrative on
the beauty of
regardless of
the gender
stereotypes.
Besides
the affir-
mative
artistic
narrative
that permeates in the female dons artworks,
Jacob Odama’s bust of Idi Amin titled Field
Marshall Idi Amin Dada evokes the notion
of studio dexterity that is much familiar
with the university dons.
The artist employs the medium of fibre
glass to sculpt a sturdy head figure of the
former president who courted both contro-
versy and admiration globally. In building
the stocky figurine, the artist sought to
explore the double edged character of the
ex-president, with specific attention to his
much- feared demeanor.
garb complete with a dreadful countenance,
serves the purpose of emphasizing how he
was perceived on the global political arena.
In exploration of the aesthetic aspects of
art, Stephen Gwoktcho’s painting The life
of a Slum Child, emphasizes aspects of per-
spective, light, tonality and texture that are
essential in the area of picture construction.
The oil painting is a figurative showcase
of the life of children in slums like Ki-Mom-
basa where the drawing was set. In the pic-
ture a young boy stands in the foreground
with an open smile, perhaps unaware of the
plight of poverty, disease and alcoholism
that surrounds him. In the background, the
full glare of social deprivation stares at the
audience.
The abodes are worn out with cracks
eating away the muddy walls of the settle-
ments; a sea of filthy water covers the court-
yard with objects floating in the open space;
while a woman sits idly on a stool.
The picture will immediately spark con-
versation on the subject of social ills that
go on in such communities, but also will
remind the audience of the obvious social
imbalances that are prevalent today.
Unlike the previous editions of Different
But One, this episode prides in showcasing
the research processes that were undertaken
by the lecturers during the production of
their artworks.
Such vibrancy hopefully, can be reechoed
in the coming editions to highlight the inno-
vative skills of the dons.
The exhibition is showing now at the Makerere
Art gallery.
March 02 - 08, 2018 35
12 year-old girl sings in 102 languages, breaks two world records
A twelve- year old Indian girl, who is in seventh grade, started an opportunity to learn as many
Suchetha Satish, who lives in preparing for the world record feat languages as possible to enable her
Dubai, recently shattered two almost a year ago. She was already “leave her mark on the world.”
Guinness World Records at the singing in several Indian languag- On Jan. 25, this year, Suchetha
same time by singing songs in es like Hindi, Malayalam and Tam- stunned her audience at the Indian
102 different languages during an il, as well as English although she Consulate in Dubai by singing in
impressive concert that lasted six says she was always fascinated by a whopping 102 languages for six-
hours and 15 minutes. Suchetha, foreign languages. To her, this was and-quarter hours.

Doctors baffled Wauconda villagers bothered by Black Panther

as 14-year-old
boy lays egg
Akmal, a 14-year old boy
from Gowa, Indonesia, has
“laid” an egg in front of
doctors, which is the 20th
his family claims he has
produced over the past two
years. Akmal was allegedly
brought to the clinic by his
family who claims he has
laid 20 eggs over the past
two years. His dad said: “In
two years he laid 18 eggs
and two today, so in total
there have been 20. I cracked
the first egg and its content
was all yellow, no white. “A
month later I cracked another
one, and its content was all
white and no yellow.” Akmal
was X-rayed so his family’s
claims could be scientifically
proven. Medics have said it is
almost impossible for poul-
try eggs to develop inside
a human and they suspect
the eggs were put inside
the youngster. Muhammad
Taslim, a spokesman for the
hospital, said: “Our suspicion
is that the eggs were delib-
erately shoved into Akmal’s
rectum.”But we did not see
it directly. “Scientifically
chicken eggs cannot form
inside the human body. It’s
impossible, especially in the
digestive system.” The teen-
ager has been placed in quar-
antine in the Syekh Yusuf
Hospital in Gowa, so doctors
can watch him.
Residents of a small bog (a nature park) and
American village have
been left baffled and puz-
its annual two-day rodeo.
But since the new Black
zled by prank calls from Panther movie hit cinemas,
people claiming to have fans have been calling
discovered the home of up to ask where they can
Black Panther superhero, get their hands on some
T’Challa the Marvel. The Vibranium. “At first, I was
hero is king of a fictional like, is there a full moon
African country of Wakanda out?” Alise Homola, an
– outwardly ordinary, but assistant to the village
secretly home to an El Dora- mayor, told the Hollywood
do-esque kingdom, hidden Reporter. “Someone called
from the outside world and and asked how we pro-
rich in a fantastical min- nounced the village name been requests to change
eral called Vibranium. The and when I told him, he the school mascot from a
village of Wauconda (pro- began yelling, ‘Wakanda bulldog to a Black Panther.
nounced “Wakanda”), Illi- forever!’ which I am guess- A Wikipedia editor recently
nois, certainly fits the ing is from the film,” she updated the online ency-
“outwardly ordinary” part. said. Dan Klett, principal of clopedia to include King
Until now, the village was the local high school, told T’Challa among a list of
best known for its swampy the office there had also famous local residents.
Single women get married to trees in ceremony to save them
Women in and kissing but they do need
Mexico have their beloved our protection.
given up on men trunks as they ‘Marry a tree’
and decided pledge their began as a ritual
to marry devotion forever. of giving thanks
trees instead. There was even to Mother Earth
Apparently, their a bouquet to carried out by
new grooms throw – though the organization
are not very presumably one ‘Bedani’, and
talkative, but of the humans later gave way
they are tall, do caught it, rather to a symbolic
great things for than a guest wedding based
the planet and from the trees’ on Inca customs
are renowned side of the where women
for their wood. family. But the and men ‘marry’
Photos from the weddings are not trees in a rite
mass ceremony legally binding led by Peruvian
in Mexico show because trees actor and
brides dressed in cannot consent to environmentalist
white hugging marital union – Richard Torres.

36 March 02 - 08, 2018

T Toyoto Corolla set for
oyota has plans of replacing the
engines of one of its most popular
cars- the Corolla. The company has
announced two new engines, two
new gearboxes and two new all-wheel drive
systems that will play significant roles in
several upcoming vehicles.
Expected to make its way first into the
2019 Toyota Corolla that was teased on Feb.
26 and will go on sale in Australia this year,
Japan’s largest car-maker has confirmed its
new 2.0-litre engine will pump out up to
126kW of power and 205Nm of torque.
Likely to replace the ageing 1.8-litre
four-cylinder engine that powers the cur-
rent Corolla, which is good for 103kW and
173Nm, the new 2.0-litre engine represents
significant power and torque hikes of 23kW
and 32Nm.
The new powertrain products are
designed to slot into Toyota’s new global
architecture (TNGA), which will under-
pin almost every new Toyota vehicle and
already supports the Toyota C-HR and
fourth-generation Prius.
Dubbed ‘Dynamic Force’, the new engine
brings direct fuel injection (D-4S) and deliv-
ers “world-leading thermal efficiency” of
40 per cent, claims Toyota. Importantly, the
new engine will comply with upcoming
global exhaust emissions regulations.
There’s also a 2.0-litre Toyota Hybrid
System or THS II, which pumps out 107kW
and 180Nm from the petrol side and anoth-
er 80kW and 202Nm from the electric side.
The THS II gets a lighter nickel-metal
new 126kW engine
hydride battery pack and the new hybrid
powertrain will deliver “improved driving
performance while retaining superior fuel
efficiency” according to Toyota.
It may sound a little dull – a pair of new
2.0-litre four-cylinder petrol engines – but
the amount of research and development
dollars that have been sunk into these sys-
tems make them critical to Toyota’s future
products, and especially its top-selling
Corolla.
New transmissions
Toyota has also confirmed a pair of new
transmissions, including a six-speed manual
gearbox that is lighter and smaller than
before, and a ‘Direct Shift-CVT’ or continu-
ously variable transmission.
The latter adopts a separate launch gear,
which is designed to improve acceleration
off the line. It then switches to the regular
CVT pulley system for cruising, enabling a
more efficient ratio at cruising speeds.
Lastly, Toyota will deploy two different
all-wheel drive systems, Dynamic Torque
Vectoring AWD and E-Four 4WD.
The former is a true-blue vectoring sys-
tem that uses a unique mechanism – not the
brakes – to transfer torque between the rear
left and right wheels.
It can also shuffle engine power between
the front and rear axles by using what
Toyota claims are the “world’s first ratchet-
type dog clutches on both the front and rear
wheel shafts”.
Toyota talks up the system’s “high off-
road performance even on the toughest
roads” and says the “clutches stop the drive
system rotations, which transmit driving
force to rear wheels when in 2WD mode,
significantly reducing energy loss and
improving fuel efficiency”.
The E-Four AWD system is for hybrid
vehicles, shunting electric power to the rear
wheels. It is also touted as providing “high
[levels of] off-road performance”.
Stay tuned for more details on
Toyota’s upcoming new powertrain
options, which will join its relatively new
310kW/600Nm 3.5-litre twin-turbo V6
and 10-speed automatic powertrain in
the new Lexus LS limousine
Source: motoring.com.au
March 02 - 08, 2018 37
 Profile
Daniel Omara; the teacher
turned comedian
By Agnes E Nantaba Omara also says his character

D
explains what he describes as “aca-
aniel Omara, is an actor, Tele- demic nomadism” that saw him walk
vision and Radio host but he through the gates of seven schools
is best known as a stand-up before completing Ordinary and
comedian, a job he started Advanced Level education. He eventu-
nine years ago. ally completed high school at St Law-
When he started, he was still a stu- rence.
dent at Uganda Christian University Along the way, Omara sought a
Mukono pursuing a Bachelor’s of Arts break in comedy in 2012 and joined
with Education in English and litera- Urban TV, doing ‘Business Unusual’
ture. until he made a u-turn in 2014 with
Since his childhood, Omara says he Comedy Files.
has always been a comedian but seri- “That was after understanding what
ous comedy started at theatre Labonita the industry wanted,” he said, “It was
where he braced the stage for auditions also a wakeup call for other comedi-
with colleagues like Patrick Idringi alias ans to up the game”.
Salvador and Alex Muhangi. Three years later, the
Perhaps, he says, this might explain group is still running. But
why he has an attachment to the place. Omara is not just an ordi-
“Theatre Labonita is the place where nary comedian; he seeks
I first stood on stage for comedy audi- to address social issues
tions,” he said. “There were over 100 and educate people in a
empty chairs and the target was to simple way. The educa-
make them all covered with people and tive messages, he says,
ensure that they are all happy”. are embedded into
His signature dress code, a combina- comedy, after observ-
tion of a black shirt, red trouser and ing normal happen-
grey shoes would be the first to impress ings, edited through a
the growing crowd. That would be the set of like two to five
beginning of his nine-year long career. minutes pieces tested
Eventually, he made it to the compe- on an audience. If
titions and as a result landed a slot with the tested version
Stand Up Uganda comedy group, as exceeds a certain
one of the proprietors. potential, it is taken
The group later started Crackers and on for the bigger
Mic Checks until they broke up in 2012. audience.
But close to a decade later, Omara says, As for comedy
his plan of building an international in Uganda as a
market for Ugandan comedy has been whole, Omara is
realized as him and many other comic not happy that the
stars have graced both national and industry is largely
international platforms. dependent on
It is not just a job—since his child- musicians’ follow-
hood, Omara, the sixth of the seven ing.
children of Julius Jasper Pkwiiyulli and “It is injustice to
Rose-Mary, born and raised in Kam- the industry that
pala, has always been a comedian. has stood the test
“Even as a kid, I was always told that of over nine years,”
I was funny,” Omara says, “I had the said Omara. “We
most random opinions.” should focus more
As a pupil at Shimoni Demonstra- on building an audi-
tion School and Green Hill Academy, ence for comedy as
Omara was always the crazy one. opposed to relying
His comic character would later on the music audience
grew into a passion for poetry, which to indicate industry
he says, guides his work life today. progress”

38 March 02 - 08, 2018

 Q&A

Daniel Omara’s Liteside

Any three things we don’t happens to be an engine for What is the quality you What is your favourite

I
know about you? many like me. most like in a woman? occupation?
love poetry, which The ability to balance Being a standup comedian
partly explains why What is your greatest imperfections and try to
I have a job as a copy extravagance? make a good out of it What do you most value in
writer. I am also a I spend a lot on utilities your friends?
gamer because it helps me like power because I always Which living person do you Being understanding; I
deal with stress. When I am have electronics switched on. most despise? like friends who know what
annoyed, I beat off the anger Besides that, I love jackets. I Thieves, especially of I stand for
by playing games. I am buy jackets based on design, public funds; we are a nation
also still single and my love warmth and color that is always drowned in Who are your favourite
for solitude explains that. debts yet we are funded but writers?
Depending on the situation, What is the greatest thing because the money doesn’t Terry Pratchett may not
I am at times social, other you have ever done? get to the rightful use be the best writer but he’s
times, I prefer to be a loner. Starting comedy files is word play and phrasing is
something I was hesitant for When and where were you something that I really like
What is your idea of perfect so long to do happiest?
happiness? The most significant one is Which historical figure do
Family and that has to What is your current state every time I see my mother you most identify with?
be my parents, siblings, of mind? because she is a very special I would give it to Dr
nephews and nieces. I I am happy person in my life. No one Matthew Lukwiya who died
usually go home once or is obliged to do the job of saving the country from
twice to recharge. What does being powerful a mother but she made the an epidemic. He gave his
mean to you? choice to carry me for nine life to save a nation and yet
What is the trait you Power comes with a lot months, delivered me and he doesn’t receive much
most deplore in of responsibilities and self raised me for lifetime. It recognition for it. He was a
yourself? control. But you cannot have should actually be the most brilliant scientist who will
I am the most power without self control valued job especially in an never be replaced
impatient person because power is an internal African setting where the
sometimes. control that starts with you mother is meant to balance Who are your real life
that role with work. heroes?
What is the trait On what occasion do you I also like hanging with My father
you most deplore lie? my nephews and nieces
in others? Some people take comedy because they are a source of Who is your hero of fiction?
Theft; I can to be lies but it is just fan. Abbey Mukiibi is
stand anything fictional humor. Everybody really good and from a
else but not lies and Ugandans lie mostly If you could change one performance perspective, he
theft, which about location and I am not thing about yourself, what is very inspirational.
is why I have one of those. I just downplay would it be?
been on things a little because I hate Nothing What is your greatest
an online lies regret?
rampage Which talent would you I regret not having
against What do you most dislike most like to have? embraced the fame earlier.
comedians about your appearance? I can rap but it’s not I always had a problem
who steal I am quite comfortable something that I have dealing with the fame so
other with my body developed there was an age where
people’s I would have been the
work What is the greatest thing What do you consider the maddest comedian. Fame is
you have ever done? greatest achievement? hard to deal with
Which I will always remember It’s still work in progress.
living the day I stood on a dark- I am also proud to be one How would you like to die?
person do deem lit theatre looking at of the founders of stand-up I just want to have a
you most thousands of chairs that I comedy in Uganda chance to repent and bid
admire? had to fill and entertain farewell to my loved ones
For me, a lot What is your most treasured
of things run What is the quality you possession? What is your motto?
with proximity. most like in a man? After my legs, it is my You either do it right or
There’s a The ability to balance voice. Everything I have you don’t do it at all
colleague called character done in the last nine years is
Isaac Kaizen who attached to my voice

March 02 - 08, 2018 39

Global comment
By Linus Blomqvist
The future of fish farming
How aquaculture can achieve long-term sustainability
both in terms of conservation and energy usage
D
emand for seafood is skyrock-
eting, and will continue to rise
throughout this century. The only
way to meet it will be through
aquaculture.
Yet, while next-generation aquaculture
will be far more ecologically responsible
than its predecessors, it will also use far
more energy. If that additional energy
is not clean and cheap, new aquaculture
technologies cannot serve our broader
environmental and climate goals.
The rise in demand for seafood is a
good thing, to a point. Fish are more
efficient than pork and beef, because they
require fewer inputs to yield the same
amount of protein. So, as global meat
consumption continues to rise, it makes
sense for a sizeable share of it to come
from the sea.
On the other hand, rising demand
for seafood poses significant ecological
risks. According to the United Nations
Food and Agriculture Organization
nearly one-third of global fish stocks, are
already harvested at an unsustainable
level, meaning wild populations cannot
regenerate quickly enough to make up
for the rate at which they’re fished. And,
because wild populations lack the car-
rying capacity to meet the increase in
demand, more fish have to be farmed.
For that reason, aquaculture is already
the leading mode of fish production for
human consumption. But, like fishing, it
also poses ecological risks.
Because aquaculture systems often
operate on coastlines or near inland
rivers or ponds, they tend to disrupt
natural habitats, contribute to nitrogen
pollution, and add undue pressure on
feeder fish stocks. For example, fish
farming is one of the main drivers of
mangrove deforestations in Southeast
Asia.
But even with these conservation chal-
lenges in mind, aquaculture remains the
only option for meeting future demand.
The path that the industry takes today
will thus have far-reaching environ-
mental implications for years to come.
In the near term, fish farms can in fact
be made cleaner. A few responsible pro-
ducers have introduced new techniques
40 March 02 - 08, 2018
and technologies to combat pollution,
from monitoring feed uptake with video
cameras to integrating filter feeders like
shellfish and seaweed into their systems.
Others are attempting to reduce their
reliance on forage fish by replacing fish
meal with plant proteins, or by adopting
new biotechnologies to produce fish feed
more sustainably. But so long as these
aquaculture systems are embedded in
coastal or freshwater environments, they
will continue to contribute to habitat loss
and ecological disruption.
For the long term, then, experts gener-
ally offer two ways forward: land-based
recirculating systems and offshore aqua-
culture. Both could potentially mitigate
the negative externalities of aquaculture
and make fish production sustainable
well into the future.
In the first approach, fish farms would
be moved from the ocean to recirculating
aquaculture systems (RAS), in which fish
are housed in indoor tanks that are regu-
lated by pumps, heaters, aerators, and
filters. One of the biggest advantages of
this approach is its adaptability: an RAS
can be located almost anywhere; from
urban lots to retired hog barns.
Better yet, these systems are designed
to recycle nearly all of the water they
use, which eliminates the problem of
coastal pollution. Accordingly, the advo-
cacy organization Seafood Watch cur-
rently gives all RAS-farmed fish a “Best
Choice” tag.
The other option is to move aquacul-
ture in the opposite direction: out to
sea. Offshore systems harness the forces
of the ocean, by using deeper waters
and stronger currents to funnel excess
nutrients and waste away from sensitive
coastal ecosystems. As a result, they have
no need for mechanical pumps or filters
(although motorized pens may eventu-
ally take to the seas).  ability – be it on land or in the sea.
In the United States, the aquaculture
industry has started to move toward
RAS production. For example, a Nor-
wegian firm has just announced plans
to build a huge new land-based salmon
farm in Maine. And examples of off-
shore projects can be found off the coasts
of Norway, California, and Hawaii. But
both systems are still a niche, rather than
the norm.
One of the primary problems with
cleaner approaches to aquaculture is that
they are energy-intensive. With land-
based systems, natural processes such as
filtration and water exchange and dis-
persal must be carried out mechanically,
which requires a lot of electricity. That
isn’t necessarily a problem in places with
low-carbon electricity grids, like France,
but it would be in a place like Nova
Scotia, which relies heavily on coal.
Likewise, offshore operations require
diesel fuel for transport and mainte-
nance, and that will remain the case until
electric boats or low-carbon liquid fuels
become more viable. Although open-
ocean aquaculture should still require
less diesel fuel than commercial fishing
– and could run on renewable energy
sources like solar, wind, or waves – off-
shore aquaculture is more energy-inten-
sive than conventional fish farms.
And even if newer aquaculture systems
can overcome their current operational
and regulatory challenges, their big-
gest hurdle will be the unavailability
of cheap, low-carbon energy. As long
as fossil fuels account for most global
energy use, the environmental promise
of next-generation aquaculture will go
unrealized.
This is true for a wide range of indus-
tries. Without cleaner and cheaper
energy across the board, we will not be
able to meet our broader environmental
and climate goals.
Our current energy technologies
– nuclear and renewables included –
still have a way to go to meet energy
demand. In the meantime, the aquacul-
ture industry will need to make further
investments and develop new innova-
tions to put itself on a path to sustain-
Linus Blomqvist is Director of the
Conservation Programme and the Food and
Farming Programme at the Breakthrough
Institute
Copyright: Project Syndicate, 2018
We are live everywhere, Always