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News analysis

Behind Constitutional Court decision


to remove age limit, annul 7 year term

Issue No. 532 Aug 03 - 09, 2018 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

Did Kayihura
kill Kaweesi?
Details of murder investigations report
Museveni refuses to
meet Kayihura
Former IGP accused of
plotting to kill Muhoozi
Findings: allegations
baseless
Recommendation:
Release Kayihura men

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Issue No. 532 Aug 03 - 09, 2018

News analysis Business Health Arts Motoring

Cover story
Inside Kayihura investigations

4 The Week
29 Comments
Observers report high turnout
in first post Mugabe polls Judges without substance: The
Judges should have taken into
consideration the recent L.C 1 and
9 The Last Word
Women Councils elections which
Africa over the last 30 years: NRM won
Why the claim that our continent’s
problems are caused by “poor 33 Health
governance” is a lot of baloney
Face-to-face with medicine smugglers
of the DR Congo: Uncovering the
16 Analysis underworld of how Uganda’s marked
Paying more to avoid a tax: medicines are stolen and sold
What reactions to social media
tax reveals about attitudes
35 Arts & Culture
23 Business
Nkole’s 5 minutes of history
Uganda Airlines and the ‘orphaned’ Airbus And its monument gaining
A300-800 neo: Aircraft might be difficult to international significance
maintain, finance or resell

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

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 Aug 03 - 09, 2018


Offline

President Museveni
with Narendra Modi,
the Prime Minister
of India. after
addressing members
of Parliament on
July 25.
“Therefore, I find that the action of
the Police and the army in forcefully
evicting MPs from the chambers and
arresting them after manhandling
them violates the constitution.” Justice
Kenneth Kakuru in his ruling on the age limit
petition

Rebecca Kadaga, (L) the


speaker of Parliament (L)
officially unveiling Pats
journal a project website on
Albinism by Source of the
Nile Union of Persons with
Albinism IN Jinja on July
25. Looking on is singer “The problem is that people think
Jenneth Prischa (2R) . FDC is JEEMA. We are political parties
and we can compete at any point. We
are going to compete against each
other in Arua by-election where our
own, Kassiano Wadri is running as
an independent.”Ibrahim Semujju, FDC
Spokesperson

Sarah Oprndi, Minister


of Health posing next
to the mammography
van that was donated to
Uganda Cancer Institute
by the Honorary consul
of the Republic of India
Madhusdan Agrawal on
July 25.   INDEPENDENT/ “I am happy with the court ruling.
JIMMY SIYA It is a victory for Ugandans. Now
all the arms of government
have pronounced themselves on
the matter and their verdict is
known.”Raphael Magyezi, Igara West
MP and mover of motion to amend
presidential age limit

Friesian cows residents

19 50 19 100
Ugandan women Years Mbrara-
based Radio of Kalungu district
who are trafficked
West is marking revived from Operation
daily- police report
Wealth Creation

Aug 03 - 09, 2018 3


week
No vaccine derived
polio outbreak,
Ministry
Following media reports that
there’s an outbreak of vaccine
deprived polio, the Ministry
of Health said on July27 that
despite the fact that there has
been an outbreak in the neigh-
boring Democratic Republic of
Congo, Uganda has not regis-
tered a case since 2010.
This strain is rare and emerges
after prolonged multiplication
of attenuated strains of the virus
contained in the oral polio vac-
cine (OPV) in the guts of chil-
dren with immunodeficiency
or in populations with very
low immunity. After prolonged
multiplication, this vaccine virus
derived strain changes and
Zimbabwe’s opposition leader Nelson Chamisa casts his vote. reverts to a form that can cause
Observers report high turnout in first post Mugabe polls paralysis in humans.
The vaccine – OPV is on the
ministry of health schedule and
International observers have Democratic Institute, told also the first election to be is given thrice before a child
reported a high voter turnout the BBC that the long queues held in over 30 years without makes a year. The Ministry says
in the July30 vote in Zimba- showed that Zimbabweans President Robert Mugabe on the vaccine is safe and is in use
bwe. The vote which saw 22 were enthusiastic about vot- the ballot. However, he came in over 190 countries.
candidates competing had ing, without any kind of out a day before to say that he
people lining up at polling repression. wouldn’t participate. He had
stations before sunrise. Also, the European Union been president of Zimbabwe
Liberia’s former President was among the observers. since 1980 when he was forced
Ellen Johnson-Sirleaf, who is The US and the EU have not out of office in November last
monitoring the poll on behalf observed elections in the year by the military.
of the US-based National country for 16 years and it’s

Somalia, Eritrea restore ties


After close to 15 years, Somalia and July28 on invitation of President Isaias nomic integration. Eritrea strongly sup-
Eritrea announced on July 30 that they Afwerki. ports the political independence, sover-
had restored their diplomatic ties and that Eritrea’s information minister shared eignty & territorial integrity of Somalia”,
embassies will soon open in their capitals. the joint statement on Twitter where the it read.
The decision was reached during a sum- two presidents were calling upon the UN At the summit a number of issues were
mit in Asmara, Eritrea, where Somalia to lift the embargo it had put on Eritrea. discussed including regional security and
President Mohamed Abdullahi Farmajo “Eritrea & Somalia will work in unison changing relations among Horn of Africa
was in the country for three days from to foster regional peace, stability & eco- countries.

*terms and conditions apply

4 Aug 03 - 09, 2018


Week

Hope as a Sheema North MP seat falls vacant after Tumwesigye win


donation of two
cancer machines 27.
“I’m the first person in the
is announced whole of Africa to be chairman
of the party at district
level, minister and again
Mbarara and Gulu hospitals represent two constituencies
will soon start offering in parliament at once, I will
radiation services after the settle down and I write a
country got a donation of book about myself because
two Cobalt 60 Radiotherapy this is un usual”, he spoke to
machines from India. The his supporters shortly after
donation announced at a press being announced winner of
briefing on July 30 was one the highly competitive poll
of the donations including a in which he garnered 13,
mobile mammography van for 590 votes against the 11,489
breast cancer screening that garnered by his closest rival
were unveiled during the visit Dr. Elioda Tumwesigye in yellow of the opposition’s Forum for
of the India Prime Minister Democratic Change (FDC)
Narendra Modi. For the first time in the for Science, Technology and party.
Dr. Jackson Orem, the country, a sitting member Innovation was representing He said he would soon
Executive Director at the of parliament was cleared Sheema North Constituency vacate the Sheema North post.
Uganda Cancer Institute said to contest for the same post until last month when he This means, soon, the Electoral
to decongest the Mulago based in another constituency. contested in a newly created Commission will organize a
radiotherapy division and to Dr. Elioda Tumwesigye Sheema municipality and won by-election to fill the vacuum.
take services to the country who doubles as Minister the seat in a poll held on July
side they have resolved to
have the new machines in the
West and Northern region. Chaos in Nebbi as NRM candidate is declared winner
Once they arrive, the country
will have a total of three There was chaos after the However, no sooner had live bullets and tear gas to dis-
which will in turn increase NRM party candidate, Hashim Fungaroo and other opposition perse the rowdy supporters.
access to treatment. Now, Sulaiman was declared win- supporters started raising their Earlier in the evening, oppo-
with the only machine in the ner for the Nebbi Municipality complaints to the media, police sition members accused police
country delivering up to 180 MP seat on July27. Sulaiman and other security personnel of using its regional medical
radiotherapy sessions every defeated his closest rival Robert roughed up Journalists and service vehicle to carry pre-
day, many of the hundreds of Onega of the FDC party with opposition supporters, forcing ticked ballot papers, an allega-
people requiring this treatment 4483 against Onega’s 4159 them out of the tally centre. tion that was denied by the RPC
are left out where some die as votes. The chaos at the tally After being forced out, the Neb- West Nile Jonathan Musinguzi.
a result. Since January when centre started when Obongi bi Returning Officer Raymond Other candidates in the race
the services resumed, Orem County MP, Kaps Hussein Fun- Kasirale declared Suleiman the included Patrick Okumu Ringa
says, 31000 sessions have garoo, complained about the winner. who polled 1,270 votes, Opio
been delivered. This machine disparity of votes at Tata polling However, this did not go on Enrico 143, Betty Odongo
replaced an old one that was station. He said that the votes well with Suleiman’s support- Pacutho 46 and Berocan Okuro-
installed more than 22 years ago for MP exceeded those of the ers who tried to force their way cal 59 votes, all independent
before it crashed in March 2016. Mayor and the directly elected into the tally centre. The police candidates.
councillor by over 100 votes. and the army were forced to fire

Aug 03 - 09, 2018 5


Week

Correction Asantehene at Kabaka’s coronation anniversary


In our Independent Maga-
zine issue No. 513 March 23-29,
2018, we ran an article entitled
“Exposed: Dirty secrets of
200bn Crane Bank Sale” where-
in, we reported that “in just
a few months the three firms
MMAKS, Bowmans and Sebalu
& Lule Advocates had earned
an estimated UGX 5.4 Billion
from BOU”. While is it true
that all the three mentioned
law firms (including Sebalu &
Lule Advocates) appeared in
court to represent Crane Bank
Limited in Receivership (Bank
of Uganda as Receivers) in the
suit against Sudhir Ruparelia
and Meera Investments lim-
ited, Subalu & Lule Advocates
were not beneficiaries of the
initial UGX 5.4 Billion payment
referred to in our article. We
would like to correct the record Ghana’s cultural leader, can cathedral in Namirembe Just like Buganda, the Ashan-
and state that the UGX 5.4 Bil- Asantehene Otumfour Nana where they prayed for God’s ti Empire has a history of being
lion referred to in our above- Osei Tutu II arrived in the coun- guidance as the kabaka contin- fierce and a conqueror as they
mentioned article, was paid by try on July29 two days before ues to provide leadership in the acquired vast lands during the
Bank of Uganda to MMAKS the 25th coronation anniversary country’s biggest kingdom. pre-colonial era in West Africa.
Advocates and Bowmans (AF celebrations of Kabaka Ronald On July31, King Tutu who Also, like Buganda Asganti
Mpanga Advocates). Any Mutebi. was coroneted in 1999 officiated kings fell out with colonialists
inconvenience the error might The two cultural leaders had as a chief guest at the Jubilee where two of their kings were
have caused Sebalu & Lule dinner together and attended a celebrations held at the King’s forced into exile.
Advocates is highly regretted. prayer ceremony at the Angli- palace in Mengo.

Women activists call for a sexual offenses bill as Rwabogo tormenter appeals sentence
Brain Isiko, a student of YMCA Jinja he on July30 petitioned court to appeal avenues like blocking his phone numbers
campus became popular recently espe- this sentence. Isiko’s sentence had caused and social media didn’t help.
cially on social media after Kabarole uproar in July where several people Following this, women activists are
district woman Member of Parliament blamed the legislator for dragging a now calling for the enactment of a sexual
Sylivia Rwabogo wept in court where 25 year old to prison over mere sexual offenses law so that it becomes clear of
she had dragged him for torturing her advances but came out to defend herself what punishments are given to people
with love advances. Isiko was sentenced that she feared for her life as the tor- who engage in such sexual harassment
to two years in prison for the offence but ture went on for months and yet other acts.

6 Aug 03 - 09, 2018


Humour Did you know?

The sun is
changing shape
According to a new paper in The
Astrophysical Journal, the Sun
grows and shrinks every 11 years
Ministry of Finance has promised to sack any accounting officer implicated in abuse of public funds by 1 to 2 kilometers (0.6-1.2 miles).
Colloquially, you could very well
say that it breathes, albeit very
slowly.
It’s a very faint “inhale” and
“exhale” though, with those extra
kilometers increasing the radius of
the Sun by just 0.00029 percent at
most. With that in mind, then, it’s
incredible that the team from the
New Jersey Institute of Technology
and the University of Cote d’Azur
managed to detect it at all. So how
did they?
As with several recent studies,
the team zeroed in on the plasma
streams escaping and returning
to the solar surface – highly
energetic ionized gas strands.
Turns out that the frequencies of
the plasma waves that slosh across
the star aren’t too dissimilar from
the sound waves given off by a
A report about governance indicates people’s inadequate awareness of institutions that dispense musical instrument.
justice, with more Ugandans indicating a preference for Local Council when seeking justice
Say you’ve got a saxophone,
because you fancy some jazz. You
play a note, noise comes out, and
all’s well. Now, if the tubing inside
the saxophone suddenly expanded
outwards, the pitch of that note
would drop. Squeeze it all in, and
the pitch would be higher.
The Sun’s a bit like a magical
saxophone in that sense. The
frequencies of those waves change
depending on how sizeable the Sun
is, and this can be measured rather
precisely by scientists on Earth.
It wasn’t easy, though; after all it
did take 21 years of observations
using two separate NASA space
telescopes to make this discovery.
Eagle-eyed solar science types
among you may have already
guessed what the “breathing” is
On 30 July, general elections were held in Zimbabwe to elect related to, and you’d be right: it’s
the president and members of both houses of parliament to do with the solar cycle.

Aug 03 - 09, 2018 7


The Kabaka’s 25th Coronation anniversary
marked with pomp on July 31.
The Last Word Opinion

Africa over the last 30 years


By Andrew M. Mwenda
Why the claim that our continent’s problems are
caused by “poor governance” is a lot of baloney

I
have just re-read the 1989 report of the 1.014 billion today. Therefore, even after remained stagnant or even declined. This
World Bank titled “Sub Saharan Africa: adjusting for inflation, our region’s GDP means there has been little or no structural
From Crisis to Sustainable Develop- has expanded six fold thereby tripling per transformation i.e. a shift in most people’s
ment.” It is a rich document in terms of capita income. Better still, only four out of livelihoods from depending on agriculture
the data it gives about Sub Saharan Africa the region’s 46 countries have a debt to GDP to industry and services. Growth has been
(hereinafter called Africa). It is also in this ratio above 100%, the average is 50%. Of sustained by export of primary commodi-
report that the World Bank introduced (for course Africa’s economic performance is not ties like minerals and agricultural produce.
the first time) the argument that one of the as dramatic as what we have seen in China I am inclined to believe that more than
powerful causes of Africa’s poor economic but it is fairly good nonetheless. improved governance, the biggest driver
performance was “governance.” The report Even when we use Belgium as our refer- of growth in Africa over the last 30 years
itself did use the expression “good gover- ence point (as the World Bank did), there is has the rapid growth of China. This has
nance”. That was in the Foreword by the some smell of good air compared to 1988. increased the demand for the raw materials
World Bank president. Belgium’s population has grown from 10 Africa produces, thereby increasing their
However, in subsequent documents, million people in 1988 to 11.4 million people value on the international market. Indeed
the World Bank began to use the expres- in 2018 while its GDP has less than doubled the recent decline in growth in China has
sion “good governance”. Since then, it has from $276 to $500 billion today and so has led to a significant decline in the rate of
entered the modern political lexicon as been its per capita income which has grown growth of Africa.
almost the singular explanation for every- from $28,000 to $48,000. It seems Africa In the 1960s, Africa grew rapidly because
thing that has gone wrong with Africa. has since the gloomy 1980s taken a turn for the economies of Western Europe were
Everywhere you turn – African elites, the better. But what explains the region’s growing rapidly and demanding a lot of
academics, journalists, politicians, and change of course from economic decline to our raw materials for their reconstruction
“experts,” – all attribute all failure in Africa sustained growth? after World War Two. As the West entered
to a lack of “good governance.” While the The IMF and World Bank would say that a period of slow growth precipitated by
Bank presented this as one among other “good governance” (the quality of institu- the oil shocks of 1973 and 1979, Africa’s
causes of Africa’s decline, over time it has tions) has significantly improved and that economies also began to decline. This led to
been transformed into “the only” explana- economic policies are better. Governments shrinking state revenues, which led to poor
tion. in Africa have since began to respect central public sector wages. I believe this is what
The 322 pages report gives a grim but bank independence, introduced more dem- worsened governance in Africa.
insightful account of where Africa had ocratic governance etc. Countries have since As already noted, Africa’s growth is not
sunk. It says our region enjoyed a brief reformed the civil service, privatised public driven by innovation but China buying our
period of economic growth in the 1960s, enterprises, liberalised the economies, con- raw materials. Our economies continue to
entered a period of stagnation in the 1970s trolled inflation, etc. This is only partly true depend on nature’s (or God’s) bounty for
and began rapid economic decline in the but I don’t think it has been fundamental. I export revenues. Economic history shows
1980s. By 1987 with 450 million people am more inclined to believe that governance that it does not really matter how a country
(double the population at independence) has improved due to sustained economic is governed: whether it is a democracy or a
Africa was as poor as (or even worse than) growth, not vice versa. Why? dictatorship, has an honest or corrupt gov-
the early 1960s. The report further says that Countries that have exhibited rapid ernment. For as long as it has appreciating
the region’s Gross Domestic Product (GDP) growth over the years have widely differing terms of trade (what it sells abroad brings in
of $136 billion was almost equal to that of governance systems. Some are seen as being more money than what it buys from there),
tiny Belgium with only 10 million people. fairly democratic (Ghana, Zambia, Sen- such a country will prosper.
To maintain investment amidst declining egal), others are categorised authoritarian This explains why Equatorial Guinea with
growth, governments in Africa had bor- (Ethiopia, Rwanda, Equatorial Guinea, vast oil revenues but horrible governance
rowed heavily from abroad. By 1988 foreign Angola) while many are referred to as high- has had the fastest growing economy in the
debt was 100% of the region’s GDP. Con- breed (Uganda, Tanzania). Some are civilian world over the last 30 years. Today it has
sequently, debt service obligations were others are military; some have long serving one of the highest per capita incomes in the
47% of total foreign exchange earnings and leaders others short lived ones. Some have world – $35,000 at purchasing power parity.
only half were being paid. To contain this withdrawn the state from business entirely The debate on the economic development
problem, the IMF and World Bank had (Uganda, Zambia,) while others have of Africa has been focused on peripheral
negotiated over 100 debt-rescheduling yet retained a strong role (Kenya, Rwanda and issues (“good governance”, corruption, etc.).
arrears were accumulating. Ethiopia). Some have accepted central bank This has obscured fundamental ones like
Looking back 30 years later, one can say independence while others have not. the dominance of multi national capital in
Africa made a turn for the better. Its GDP However, regardless of regime type, the our nations and poor terms of trade.
has grown from $136 billion (or $276 bil- quality of institutions and the mix of poli-
lion in 2018 dollars) in 1988 to $1.645 trillion cies, the region has been de-industrialising amwenda@independent.co.ug
today, the population from 450 million to i.e. ratio of manufacturing to GDP has

Aug 03 - 09, 2018 9


cover story

Inside
T
By Haggai Matsiko

he committee investigating
former Inspector General of

Kayihura
Police, Gen. Kale Kayihura,
for allegedly killing his for-
mer deputy, AIGP Andrew
Felix Kawesi, has found that
the allegations are baseless. According to
well-placed sources at State House, the joint

investigations
investigations committee handed over their
report to President Yoweri Museveni last
week on July 27.
The Independent has learnt that the joint
investigations committee made up of four
police officers and two officers from the
Internal Security Organisation (ISO) and

Museveni refused to
another two from the Chieftaincy of Mili-
tary Intelligence (CMI) finished their report
last week.
According to contents of the report, parts
of which have been seen by The Indepen-
dent, the joint investigations committee
meet Kayihura
recommended that all the officers close to
Kayihura arrested over alleged involvement
in the murder of Kawesi should be released
forthwith. The fate of Joseph Baroza, the
Former IGP accused of
former Kayihura ADC who escaped arrest
and went into hiding was not handled in
the report.
plotting to kill Muhoozi
Findings: allegations a
In a related development, The Inde-
pendent has reliably learnt that following
his arrest, Kayihura requested the Chief
of Defence Forces (CDF), Gen. David
Muhoozi, to secure an appointment for him
to meet Museveni.
hoax
According to a highly placed source
at State House, Muhoozi presented this
request to Museveni during a meeting of
senior army officers with the president.
Recommendation:
Insiders say Museveni declined to see
Kayihura. He told the army officers that he Release Kayihura men
preferred to keep emotional distance. He
said that if he met Kayihura personally, he
could be swayed by kindness and emotion
towards him.
In their heydays, Museveni always
praised Kayihura as a loyal cadre, and it
appeared understandable that he felt seeing
Kayihura could affect him that way. The
statement also revealed that Museveni was
taking the investigations against Kayihura
seriously.
Sources further told The Independent
that even before Kayihura was removed
as IGP, Muhoozi had led a team of army
officers to meet Museveni where they
expressed concern regarding the position
of the IGP whose powers had been signifi-
cantly trimmed.
A source at State House told The Inde-
pendent that Museveni took time to explain Brig. Abel Kandiho Grace Akullo, Col. Kaka Bagyenda,
to the officers that he considered Kayihura
a good cadre who had transformed the – and then as an afterthought added: “and had killed Kawesi in order to forestall a pos-
police from an anti-NRM institution into a foreigners.” sibility of the latter becoming a successor.
“progressive force.” However, Museveni Later in June, the Director General of ISO, According to an impeccable source at State
added that Kayihura’s problem was that he Kaka Bagyenda, presented a report to the House, the report had an audio recording,
had allowed criminals to infiltrate the police president, which claimed that Kayihura which appeared to prove this accusation.

10 Aug 03 - 09, 2018


cover story
Some of this “evidence” was openly
put to Kayihura on June 13 after Deputy
Chief of Defence Forces, Lt. Gen. Wilson
Mbandi, and the head of CMI; Brig. Abel
Kandiho, arrested him from his farmhouse
in Kashagama, Lyantonde District, and flew
him to Entebbe in helicopter and immedi-
ately drove him to Makyindye Military Bar-
racks, where he remains detained.
After his arrest, Museveni instructed that
a joint investigations team comprising of
police, ISO and CMI be set up to handle
the matter. Initially it comprised 12 officers
who were later reduced to eight to make the
work faster.
Those from police are Grace Akullo, the
Director Criminal Investigations and Intel-
ligence Department (CIID), who also chairs Kaweesi murder scene
the team, her deputy; Senior Commissioner had Museveni. In fact, sources say it was found it hard to believe that such a sensitive
of Police (SCP) Elly Womanya, and two this recording that led Museveni to order murder could have been discussed at a bar
other police detectives. From ISO, it is Lt. the arrest and detention of Kayihura. But counter. They began to develop suspicions.
Churchill Mutatina and another, and from when the recording was taken to Makerere The investigators also learnt that ISO’s
CMI, it is the Joint Anti-Terrorism Task University’s digital laboratory to check its Kaka called Mbabazi for a meeting at a
Force (JATT) Director, Charles Asiimwe, authenticity, they found a lot of issues. hotel in Kampala and asked her to impli-
and another agent. The recording was found to comprise cate Kayihura. Mbabazi said Kaweesi had
three different pieces of communication told her that there had been people trailing
Fake evidence that were edited to sound as one. The first him and his relationship with Kale was not
According to sources close to the investi- bit was of Muhangi telling Kayihura that good.
gations, the team has found that all the evi- Kawesi is dead. The second part of “the When Kaka brought the same witness
dence against Kayihura and his associates mission has been accomplished” was from who claimed to have been in the meeting at
was fabricated. These associates include; Muhangi to Kayihura but many months Kati Kati, in handcuffs, to another meeting
Richard Ndaboine, the former head of cyber before the Kaweesi murder. The last bit of to identify Mbabazi, the witness started yell-
intelligence, Col. Ndahura Atwooki, the Kayihura saying, “thank you very much” ing at Mbabazi; “You don’t know me? You
former head crime intelligence, and Herbert was picked from his closing statements at a don’t know me?” Mbabazi said she didn’t
Muhangi, the former head of Flying Squad, press conference. know him.
among others. CMI picked up these offi- Apparently, ISO operatives had gotten The other witness, a one Kimbowa,
cers around the same time Kayihura was different voices from different times and also claimed he had been riding the other
arrested. occasions and creatively fabricated evidence shooter—a one Sergeant Abel Tumukunde.
The Independent understands that most to pin Kayihura. The Makerere software, But when pressed, he confessed that they
of the evidence, the investigating team however, is able to establish the date when coached him to claim that he rode a bike on
was relying on was supplied by ISO led any voice or image was recorded or taken. which the alleged second shooter was.
by Col. Kaka Bagyenda. The Independent This is exactly what happened when the
also understands that CMI’s Abel Kandiho audio was taken to Makerere University Witnesses unmasked
and Police’s Akullo are furious that ISO got digital lab for proper authentication and Apart from this, from his phone call
them involved in a scheme largely driven factual verification. That is how the record- records, the committee found that the first
by fabricated evidence. ing collapsed. witness was in Mubende at the time of the
The evidence involved about four ele- But ISO still had its two alleged key wit- shooting of Kaweesi. He had left Kampala
ments; a recording in which Kayihura was nesses. One of them, Rwoga-omugatyarize at 7am and reached Mubende at 9:00am.
said to be talking to the killer of Kawesi, Kiiza aka Rasta, claimed that he had been Kaweesi was shot at 9:15am. When pressed
witnesses who claim to have driven the at a meeting at Kati Kati Restaurant along further, he even confessed that he had met
assassin to the scene of crime, and a meeting Lugogo bypass with senior police officers and talked to Kaka.
at which the murder was allegedly planned, who planned and executed the murder. The Independent has learnt that all the
among others. Apart from Muhangi, this witness claimed witnesses confessed that they had been
ISO agent Simon Peter Odongo, who that others were; former Kampala Metro- coached. Who was couching them?
recently led a raid on telecom giant, MTN politan Police Commander, Frank Mwesig- It turns out that it was all the work of one
Uganda and carried away some servers, is wa, Col. Ndahura Atwooki, the former head Paddy Sserunjogi aka Sobi, a self-confessed
said to have been the source of the record- crime intelligence, Muhangi and Christine criminal turned ISO operative, and a one Lt.
ing. In the recording Kale is said to be talk- Mbabazi, who is said to have been Kaw- Abdul Juuko Serwanga, a former Wembley
ing to Herbert Muhangi, the former Com- eesi’s girlfriend. Operation operative, who had been fired
mandant of the defunct Flying Squad in the This witness claimed that Mwesigwa was from ISO only to be re-hired by Kaka.
recording. the strategist of the murder and Muhangi Last year, Sobi, confessed on camera to be
“Kaweesi is dead, the mission has been executed it. the leader of the notorious Kifeesi criminal
accomplished,” Muhangi allegedly says in The said witness claimed he rode gang. At a meeting attended by the then
the recording. Muhangi on the bike and the latter shot and police commandant for Kampala East, Siraje
murdered Kaweesi. However, when they Bakaleke and Kampala Metropolitan Police
“Thank you very much,” Kale replies. took him to Kati Kati to point to the place commander Frank Mwesigwa, the Kifeesi
Initially, those involved in the investiga- where the meeting took place, he showed criminal gang agreed to work with police.
tions appeared to believe the recording as them the bar counter. The investigators However, following public backlash, Sobi

Aug 03 - 09, 2018 11


cover story
was arrested and detained in Nalufenya, that this was a Shs4 billion deal. He bragged for Kampala Mayor was a key contact of
the defunct notorious torture centre. Insid- that he had been recruited into ISO, has a former Security Minister, Lt. Gen. Henry
ers say Sobi was arrested at about 10:00am double cabin pickup complete with body- Tumukunde. He had helped in the fight
and had already been released by 5:00pm. guards. against Boda Boda 2010. Together they
According to an impeccable source, Musev- The witnesses mentioned Sobi in their were fronting another boda boda associa-
eni called Kayihura and ordered him to statements, which are both video recorded tion called Century to rival boda boda 2010.
release Sobi. and written. Insiders say that Kaka thought Ragga Dee was its patron and they wanted
Sobi had earlier on told journalists that he that if he worked with criminals, he would to neutralise Kale politically in Kampala.
wanted to give up crime earlier and tried to apprehend all criminals in the city. In Mutundwe, Kaka and Ragga Dee
work with police but was disappointed to Away from the Kaweesi case, one of asked Kitagenda to collaborate with them
find even more criminals in police. He later the witnesses also claimed that Kayihura and implicate Kayihura in the murder of
met a general who convinced him to aban- had hired him to kill the President’s son, Kaweesi. When he refused, he was arrested
don criminality and get his colleagues to do Maj. Gen. Muhoozi Kainerugaba at a bar for about two months.
the same, Sobi claimed. in Kololo. He added, however, that when While in ISO detention, Kitagenda was
When Museveni ordered Kayihura to they reached there, they found it had CCTV not able to show up for his bail. As a result,
release Sobi, the then IGP obliged and surveillance cameras and Muhangi ordered they took him to Makindye and said he was
handed him over to ISO. Upon his release, them to abort the mission. jumping bail and military police put him
Sobi was driven away from Nalufenya like a back in jail.
VIP in two heavily armed military vehicles ISO’s Kaka under fire As the investigations began to close in on
allegedely provided by a general who was Having interrogated these witnesses, the entire hoax, Kaka got jittery at ISO and
also a cabinet miniser. all the members of the committee came tried to salvage it. In the last frantic effort,
When Kale appeared before parliament, to a conclusion that these allegations are insiders say, ISO’s Simon Peter Odongo
MPs asked him why he released Sobi. mere fabrications. Why did Kaka allow this raided MTN and confiscated their servers.
Kayihura said he had not released him but investigation clearly knowing ISO did not According to sources deep inside ISO, the
handed him over to ISO adding,"He still aim was to try and manipulate call data so
has files with us but there is a sister security as to place the witnessed and the accused
agency that has issues to either question at the crime scenes in order to validate the
him (about) or work with him and that is allegations.
how we work,” Kayihura told parliament, Odongo raided MTN together with other
“Perhaps they want to interrogate him or operatives together with whom they work
work with him, it might be an intelligence with Kaka. Unknown to them, the wit-
operation and they requested us (for him) nesses had already made confessions to the
and we handed him over”. This was true. joint investigations committee regarding the
It later emerged that Sobi had stopped places they were at the time of the murder
working with police months ago and had of Kawesi, which rendered all evidence
joined ISO. He had worked with police for valueless.
years following his release from Luzira pris- This is not the first time ISO is generat-
on where he had spent years on remand. ing what critics call fake intelligence. For
At ISO, insiders say Sobi is a real heavy- instance, in May last year, The Independent
weight; he is driven in an SUV and even has Kale Kayihura reported how Museveni had been told that
an escort pickup with soldiers that guard senior government officials had hacked the
him. have any evidence to prove Kayihura was central bank system and stolen some $38
Juuko, on the other hand, was in ISO involved in the murder of Kawesi? million.
during Elly Kayanja time. But in the early Insiders suspect that Kaka had thought After reading this report, Museveni is
2000s, according to court records, while an that these would be desk investigators. But said to have met the agents behind these
ISO agent, Juuko was remanded on charges when committee members began going to reports. Odongo was one of these agents.
of assisting a Pakistan drug trafficker, Nisar the crime scene, gather large volumes of One of them told Museveni that he was
Ahmed, found in possession of 2.103kg technical evidence, and visit many other involved in transporting huge sums of
of heroin valued at Shs113 million, escape places, Kaka’s allegations were quashed. money for officials looking to sponsor rebel
arrest. Investigators discovered that it was all a activity. The agent also claimed he had
Amos Makumbi and Brig. Ronnie Balya, hoax. Insiders say he has been briefed and is dropped US$ 1.5 million in Mbarara at Agip
who succeeded Kayanja later, did not toler- under intense stress. Motel, US$ 1 million in Masaka and another
ate him. During their tenures, they refused Akullo, who was heading the team, insid- US$ 1.5 million in Mbale to coordinate rebel
to work with him and kept him away from ers say, was upset about the fabrications. activity.
the institution. When Kaka came into ISO, Every witness was video recorded, so they When the President probed further,
Kayanja, who is a close friend of Kaka, cannot claim they did not say those things. Odongo said he had given the money to
introduced Juuko to the new DG who he Apart from this, one of the suspects, someone at Agip Motel in Mbarara. But it
re-hired him. Abbey Kitagenda, the former Commandant seemed suspicious that an agent would just
Today, Juuko runs the Kyengera safe Flying Squad in charge of Kampala North, hand US$ 1.5 million to someone they did
house where ISO allegedly tortures people. who had been arrested with other police not know just like that.
The safe house is called Value Addition. A officers, was released because the Court The central bank governor, Emmanuel
squad commanded by Juuko controls it. Martial did not find any evidence against Tumusiime-Mutebile, would also later
They arrest people there, torture then and him. report to President Museveni that these
extort money from them, sources in security According to highly places sources allegations were a hoax as no such money
claim. inside ISO, he was taken to Serene Suites had been stolen from the bank. In this case,
The witnesses confessed that Sobi and in Mutundwe where he met Kaka and the Museveni just ignored the matter. It remains
Juuko were the ones coaching them. Appar- businessman cum musician Daniel Kazi- to be seen how he will react to ISO’s intel-
ently, Sobi had told one of the witnesses bwe aka Ragga Dee. Ragga Dee, who ran ligence in the Kale case

12 Aug 03 - 09, 2018


news analysis

The coram of Judges; (L-R) Barashaki, Kasule, DCJ Dollo, Kakuru, and Musoke.   FILE /PHOTO

Courts of fear
Behind Constitutional Court decision to
remove age limit, annul 7 year term

T
By Agather Atuhaire that similar rumours of the President calling Museveni. This twist added more anticipa-
judges circulated. tion of a judgment tough on Museveni. But
wo days before the July 26 Kanyeihamba writes: “It was said that the it was proved wrong.
decision of the Constitutional Chief Justice had been summoned by the The day’s grapevine had another tale;
Court to uphold the constitu- highest political authority, which controlled that the coram of five justices would allow
tional amendment by parlia- the then prevailing constitutional order of the removal of age limits but disallow the
ment to remove the Presiden- governance, and told in no uncertain terms extension of the term of members of parlia-
tial age limit and quash the that the authority could not be trusted to ment from five years to seven. This was
amendment for a seven-year term for MPs contain possible actions by the Uganda proved right.
and return of presidential term limits, word Defence Forces when rejecting any orders But even this had another twist; that
circulated that President Yoweri Museveni allowing the petition.” the court would rule that a referendum be
was calling some of the judges on the coram Kanyeihamba writes that all seven judges conducted to determine whether to change
– to ensure a favourable decision. on the coram, including then-Chief Justice the length of terms. The court discussed the
Nothing unusual there. As far back as Benjamin Odoki, denied they had been referendum issue but did not rule on it.
2012, one of Uganda’s top justices, George called. But he reveals on page 386, that a Finally the word had it that the justices
Kanyeihamba who has been involved in year or two later, Odoki –in a judicial slip would rule 3:2 in favour of lifting the age
similar decisions had, in his book `The of tongue - revealed that the President had limit and retaining the five year terms and
Blessings and Joy of Being who You Are’, summoned him and warned him of the return of presidential term limits. This was
written about President Museveni calling possible consequences of their 2006 verdict. also proved wrong. The justices ruled 4:1 on
judges just before important rulings are He says it was later confirmed by several the former and 5:0 on the latter two.
made. soldiers on the army high command.
Kanyeihamba, who was on the coram But the word that circulated two days Sitting on a time bomb
that heard the election petition by opposi- to the Mbale Constitutional Court deci- Those happy with this decision cel-
tion candidate Kizza Besigye against Presi- sion had an unusual twist; it alleged that ebrated.
dent Yoweri Museveni’s win in 2006 writes one of the judges on the coram had told off But many others said the judges exhib-

Aug 03 - 09, 2018 13


news analysis
ited double standards in finding that some as a once renowned member of the opposi- lone demolisher of the amendment remov-
parts of the same law are null and void tion Democratic Party (DP) was expected to ing the presidential age limit from the con-
while others are legitimate. They appeared “fear” to challenge Museveni. stitution.
unconvinced by the argument of the justices 70-year old Kasule’s views carry weight Kakuru, of all the justices, sought to con-
that, under the severability doctrine, some as he is also the current Chairman of the textualise his ruling on Uganda’s turbulent
sections of a law that are unconstitutional Uganda Law Council and, as he is due to political history and the spirit and intent of
can be severed and those that are not are retire this year; he was expected to want to the framers of the 1995 national constitution.
saved. go out with a bang. “The history of the country and the leg-
The analysts say the justices had a perfect Kasule and Museveni also have a check- islative history of the Constitution is also
opportunity to forestall a looming political ered history. When he ascended to the relevant and a useful guide in constitutional
crisis surrounding Museveni’s continued Court of Appeal in 2011 many recalled that interpretation,” he said adding that, in the
clinging to power and missed it. his name had been first nominated in 2002 preamble to the constitutional, the people
“What their decision means is life presi- but rejected by Museveni who preferred of Uganda emphasised the country’s his-
dency and that means no peaceful transfer the outgoing Deputy Chief Justice Steven tory, acknowledging sadly that it has been
of power which means we are sitting on a Kavuma. characterised by political and constitutional
time bomb,” said Wandera Ogalo, the law- Even when Museveni accepted Kasule instability.
yer for the petitioners, in an interview with in 2011, many of his advisors said he was “Lest we forget,” he said, “My attempts
the Independent. misadvised. And they appeared vindicated to recount the constitutional history was to
The Citizens Coalition for Electoral when Kasule was only one of the five jus- re-echo the people’s cry, in the preamble to
Democracy in Uganda (CCEDU) Coordina- tices of the Court that ruled in favor of the the Constitution. We must always recall our
tor, Crispin Kaheru, also says the decision of rebel MPs when NRM sought to throw history. “Lest we forget.”
the court spells doom for democracy. them out of Parliament after their expulsion He added, regarding the motive behind
“The judgment may have substantially the lifting of the presidential age limit which
and inadvertently reversed the country the other justices fudged: “Born in 1944
from a multi-party political dispensation to President Museveni will not have been
an individual-based political system,” he qualified for election as President under the
said, “The fear to hurt the interests of Presi- Constitution as it stood in 2017, as he would
dent Museveni could have compromised have attained the age of 75 years in 2019, the
the objectivity of the judges.” next General Elections being due in 2021.”
For the purveyors of the grapevine drivel,
all the detail was of little consequence, it is And Kakuru went a step further.
the substance that mattered. He invoked the Basic Structure Doctrine;
To them it was enough confirmation of a legal principle originating from India that
the rumours that four out of the five justices says that national constitutions have funda-
of the court held that the constitutional mental features that go to the very root of
amendment Act, which was passed amid the constitution and should never be altered
controversy and police and army brutal- through a parliamentary amendment
ity; including the invasion of parliament because that would amount to destroying
and battery and detention of some MPs in the foundation and structure of the constitu-
December last year, was valid. Clearly, the tion.
justices were determined to allow Museveni Kakuru stated that there are provisions of
to run for presidency for the sixth time in the Constitution which parliament does not
2021 when he will have been 35 years in have power to alter even if it followed all
power. the required procedures of amendment.
“Parliament, in my view, has no power
So how did it happen? to amend alter or in any way abridge or
The turning point appears to have been remove any of the above pillars or struc-
reached at Justice Remmy Kasule’s verdict. tures of the Constitution, as doing so would
He ruled that the framers of the 1995 Con- amount to its abrogation,” he said.
stitution did not put the article on presiden- He added: “In this regard therefore, I find
tial age limits among articles that require a Kenneth Kakuru that the basic structure doctrine applies to
referendum to change. They left that to Par- Uganda’s Constitutional order having been
liament which, in his view, was within its deliberately enshrined in the Constitution
powers to amend them together with those from the party. by the people themselves.”
of District Chairpersons. In an elaborate dissenting judgment, Kakuru ruled that MPs have no power,
Kasule cited the Odoki Constitutional Kasule said that expulsion from a party including legislating on extending their
Commission Report proposing that only does not mean an MP automatically loses term from five to seven years.
proposed minimum age limit of 40 years for the seat in Parliament. The rebel MPs based “The power to legislate belongs to the
one standing for the office of President and on his ruling to challenge the decision of people of Uganda, who every five years del-
never put a maximum age limit of the Presi- the majority in the Supreme Court which egate it to some amongst themselves under
dent, reasoning that: confirmed Kasule’s judgment. Many of Article 1 of the Constitution. This power
“Since we have proposed the minimum those that sought dissenting voices in the therefore delegated as it is very limited in
age, we are of the view that there is no need Mbale ruling based on such rulings and both in time and scope.”
to fix the maximum age; the electorate will his pedigree in the opposition DP to bet on He concluded that the contravention
decide on the appropriate candidate.” him. They lost. of several articles of the Constitution and
So why were many surprised by Kasule’s omission defeated the whole amendment.
decision? Counting on Kakuru He ruled: “The entire Constitution
Partly, it must have been because Kasule, That left Justice Kenneth Kakuru as the (Amendment) Act 1 of 2018 is unconstitu-

14 Aug 03 - 09, 2018


news analysis
tional and is therefore null and void. All its
provisions ought to be expunged from the
Constitution of Uganda.” But Kakuru was
outnumbered 4:1.
In the end, several renowned constitu-
tional lawyers say the judgment reached
was technically unimpeachable not substan-
tially unconvincing.

Shallow interpretation of
constitutionalism
Prof. Oloka Onyango of Makerere
University Kampala whose latest book
is `When Courts Do Politics’, says on the
technical questions, it is hard to fault the
judges because whether the age limit can be
removed or not is not a legal issue.
“In the black letter of the law, there was
no problem with the removal of age limit,”
he told The Independent in an interview
“Article 102 (b) is an article like any other
which can be amended by parliament.” But,
he added “You need to contextualise it.”
“The age limit is not an event,” he said, Wandera Ogalo (L) and petitioner Male Mabirizi
“it had to be put into context.”
He says the Justices by their decision cre-
ated a life presidency. power and elections with meaning. qualifications include but are not limited
“In a country where you have never had “The judges know very well that there to citizenship, age, and 10 academic quali-
a free and fair election, where there has nev- is a problem with the election process,” he fications. The same ought to apply to the
er been peaceful transfer of power, where told The Independent in an interview and disqualifications of the same leaders. It may
there are no functional institutions, you can- reeled off a list of recent flawed election. be, for example, found necessary in future
not afford to create a life presidency.” He cited the Rukungiri Municipality to require every Presidential candidate to be
He says the Judges should have based by-election where President Museveni computer literate, fluent in both English and
their decision on the context within which sought to influence the vote by splashing Swahili and at least two local languages the
Uganda finds itself and the implications of a over Shs5 billion worth of freebies to voters list is endless”.
life presidency. Instead, he says, the court’s with a stern warning: you either vote So, it appears Ogalo and Oloka might not
decision depicted the justice’s shallow inter- the NRM candidate or you will not get have convinced Kakuru on that one.
pretation of constitutionalism. government services. Still, Ogala says removing age limit is
“A constitution is not a statute,” he “Term limits and age limit are a disastrous for democracy in Uganda. But
said, “You cannot interpret a constitution conscious process to ensure democracy in he says the Mbale Judgment is good for the
as just a legal document. It is a political Uganda because these other institutions, growth of constitutionalism and enrichment
document, a social document, a cultural for instance the Electoral Commission are of jurisprudence.
document.” too weak,” Ogalo said. He says the Judges “The Judgment, particularly of Justice
He says Judges needed to refer should have pronounced themselves on Kakuru and Remmy Kasule which delved
to Uganda’s history of coups and the implications of the removal of age limit into our history was good,” he says.
militarism, the flawed elections, and the in Uganda’s context. Ogalo is happy that the Basic structure
malfunctioning institutions. He says such But even Justice Kakuru, the lone Doctrine has been introduced in Uganda’s
a context renders the judges’ unanimous remover of the age limit did so without law.
condemnation of the extension of terms for pronouncing himself on the issues Ogalo But Oloka says the reference to the Basic
MPs and local government leaders while and Oloka wanted addressed. Structure doctrine by the justices was point-
promoting a life presidency inconceivable. And it appears, Kakuru anticipated the less if in the end they upheld an amend-
He attributes the decision of the justices Ogalo and Oloka challenge. ment that completely violates all the tenets
to fear. He ruled: “I have found nothing to of the doctrine.
“What we are seeing in this country suggest, let alone prove that Parliament Ogalo disagrees. He says if the Judges
is structural fear,” he says. “People have cannot, through the established had applied the doctrine to the present
lived in a context of a dictatorship and constitutional process, vary the dispute, there would be a risk of it being
have gotten accustomed to not questioning qualifications of the President or that of the struck out by the Supreme Court on
anything. That is why the Judges can District Chairperson. The qualifications of appeal.
challenge life MPs but not life presidency.” the President and those of Chairpersons “That is why I didn’t even argue it,” he
Oloka calls this a structural fear which, District local governments do not in my says, “I feared it because it was rubbished
he says, is not only in politics but even in view form part of the basic structure of the in Tanzania but Lukwago (Erias) argued
the social life of Ugandans. Constitution which I set out earlier in this it.
Lead lawyer for the petitioners, Wandera Judgment. “Even though they did not apply it to
Ogalo, agrees with Oloka that the Judges “The people of Uganda, through their the present facts”, he adds, “I am more
needed to show what they understand will Constitution, should be able to freely, than happy that it is now part of our
be the impact of their decision on a country whenever it is absolutely necessary to do so, law and that to me was a plus.” And the
that is yearning for a peaceful transfer of vary the qualification of their leaders. These debate goes on.

Aug 03 - 09, 2018 15


rwanda

RDB chief tourism officer Belise Kariza cut ribbon tocommission the houses.   Courtesy/ PHOTO

Gains from protecting wildlife


Villagers get new houses, mobile clinics, solar systems
By Independent Reporter Revenue Share Programme are about event is ‘Conservation is Life’ and the

S
improving people’s lives. naming ceremony will take place in
upporting and engaging in “This project is one of a kind. Kinigi, Northern Province on Sept.07. In
wildlife conservation pays. But It demonstrates our commitment addition to the launch of the Kwita Izina
for communities living on the to preserving biodiversity while community projects, the ‘Conversation
fringes of national game parks contributing to improving the on Conservation’ (CoC) Forum that will
this is always a hard choice. For close to livelihoods of people living adjacent take place alongside it on Sept.04-05
50 people in Kitabi sector, Nyamagabe to our national parks and the overall will focus on conservation trends and
district, the conservation choice is development of the country,” she said. practices.
paying off. Marie Rose Mureshyankwano, the It will bring together tourism
On July 27 the Rwanda Development governor of Southern Province, who and conservation partners from
Board (RDB) handled them keys to 10 presided over the function, noted that Uganda, Kenya, Tanzania to showcase
modern housing units valued at Rwf36 good housing was essential for the conservation efforts and avail
million. This is under the government’s development of the family. “Our future educational materials to the general
revenue sharing programme, where depends on the stability of family public and global conservation leaders.
communities bordering parks get a institution and it is, therefore, important It will provide a unique platform
share of monies raised from the game that we continue to protect the general linking conservation with sustainable
park. The current beneficiary families welfare of families, especially children,” tourism by embracing all layers of the
had all previously lived in the buffer she said. value chain.
zone of Nyungwe National Park, Initiated in 2005 by the government, As a result of conservation efforts
according to RDB. the revenue sharing programme such as Kwita Izina, the population of
The modern houses will aims to guide investment in the the endangered mountain gorilla has
accommodate 48 occupants, including areas surrounding the various increased to 604 in 2016 in the Virunga
children, a statement from RDB shows. national parks in Rwanda in order to Massif compared to 480 in 2010. The
The donation is the first community enhance awareness of importance of Virunga Massif is comprised Mikeno
project of the Kwita Izina 2018 activities. conservation to communities living Sector of Virunga National Park in
The second donation of a mobile clinic, around national parks. Following a the Democratic Republic of Congo,
solar lighting systems and solar water Cabinet decision in 2017, the funds Volcanoes National Park in Rwanda
pumps will be given to residents of available to support the revenue sharing and Mgahinga Gorilla National Park in
Karambi and Sangano villages in Ndego programme were increased from 5% to Uganda. Mountain gorilla numbers in
sector, Kayonza District on Sept. 05. 10% of all tourism revenues in 2018. the entire area had fallen to a low of 242
Speaking at handover event, the chief 2018 Kwita Izina in 1981.
tourism officer at RDB, Belise Kariza,
said the programmes funded by the The theme of this year’s Kwita Izina

16 Aug 03 - 09, 2018


rwanda

RDB partners with


By Julius Businge

A
ndela, a global engineering firm
based in New York, has raised

global IT firm, Andela


US$80million in venture funding
to mentor software developers
in the four African countries where it
operates; Rwanda, Uganda, Kenya and
Nigeria.
The firm invests in Africa’s most talented US$80million available for
software developers and pairs them with
engineering firms around the world.
Officials say the goal is to solve the tech
specialists in 4 African countries
talent shortage by accelerating the growth
of tech ecosystems on the continent. Uganda), the company has mentored more
Four days after launching its operations than 700 software engineers across the
in Uganda on July 19, Andela issued a continent that collectively help power the
notice on July 24 announcing its entry technology teams of more than 150 global
into the Rwandan market where it aims to companies including Viacom, GitHub,
establish a pan-African technology hub. Pluralsight and more.
Andela’s co-founder and Chief Speaking to The Independent on the
Exectuve Officer, Jeremy Johnson sidelines of Andela’s inaugural developer
said they are partnering with the conference at its new hub in Kampala,
Government of Rwanda through the Jackie Ochola, the firm’s country director
Rwanda Development Board (RDB), an for Uganda, said that when one joins and
organisation responsible for transforming finishes Andela’s four year fellowship,
the country into a dynamic global hub for their human potential will have advanced
business, investment and innovation. a lot faster than it would anywhere else.
Kigali was chosen due to its strong She said after the fellowship,
existing infrastructure and ease of doing beneficiaries could become tech-
business and access for developers across entrepreneurs or join world class
the continent. companies in senior level roles.
Jeremy said that through the Speaking at the official opening of
partnership, RDB will support Andela’s Andela’s operations in Kampala on July
efforts to build a pan-African workforce 19, Micheal Niyitegeka, an IT expert
and support the development of Rwandan based in Kampala said, Andela’s coming
and other African talent. into the market will positively impact
He added that this will catalyse on the general ICT sector through skills
Andela’s mission to invest in Africa’s most Jackie Ochola, Andela’s country director for Uganda development.
promising talent and build the continent’s He said retooling and skills
future technology leaders, adding to Through Andela’s distributed model of development of IT specialists is important
over 700 Andela developers based in the work, developers gain global experience because of the changing dynamics of the
company’s existing locations in Lagos, with the world’s top technology firms entire sector. He said trainees must be
Nairobi, and Kampala. while working remotely from an Andela eager to learn and practice what they learn
“We are thrilled to have found a partner campus. if they are to move things.
in the Government of Rwanda whose Sulyman said this enables them to Indeed trainees of Andela appears to be
mission is so closely aligned with our own actively contribute to the growth of their ready to show what they have and benefit
which is to grow and sustain a pan-African local tech ecosystems by leading developer from the gains of the sector.
elite tech workforce,” he said. groups, mentoring junior technologists, Nickson Kamugisha, a third year
Jeremy said in Kigali, they found a and serving as an example of how local student of computer science at Uganda
location that makes travel to-and-from developers can compete on a global level. Christian University (UCU) told The
other African countries seamless and Clare Akamanzi, the RDB chief Independent that he joined the Andela
also has the modern and connected executive officer said the partnership with fraternity in 2016 and he hopes to benefit a
infrastructure they require to collaborate Andela will help Rwanda build the next lot from it.
with a global workforce. generation of technology leaders who will Kamugisha wants to develop mobile
Seni Sulyman, Andela’s vice president lead innovation in Kigali and beyond. apps and other desktop applications in the
in charge of global operations described “Through partnerships, such as the near future.
Kigali as a 4G African city that continues one we are announcing today, we are “So far they are already training us and
to push towards ICT excellence and is fast accelerating Kigali’s growth as a global we do expect to enhance our skills that
becoming one of East Africa’s key tech technology hub while also advancing we do get from schools and colleges,”
hubs. skills development and employment Kamugisha said. The entire fellowship
“Connecting talent with opportunity on opportunities for young, talented programme lasts for four years.
a global scale is Andela’s ethos, and with Africans,”Akamanzi said. Going forward, Andela targets to mentor
the opening of our Kigali hub, we expect Four years ago, Andela first launched 100,000 software developers by 2024 in the
to extend opportunities to thousands operations in Nigeria and has since four markets of Rwanda, Uganda, Kenya
more software engineers from across the mentored slightly over 500 software and Nigeria.
continent that will make their mark on the developers.
global tech scene via Kigali,”Sulyman said. In the three markets (Nigeria, Kenya,

Aug 03 - 09, 2018 17


RWANDA

Indian PM Modi and President Ka game.   COURTESY/ PHOTO

After Indian PM Modi’s visit


Opportunities open but challenges
loom for Rwanda businesses
By Stephen Nuwagira business community during the India- a marked increase in Indian visitor

J
Rwanda Business Forum in Kigali on arrivals.
ust days after the July 23-24 visit to July 24. The official, who is also co-chair of
Rwanda of Indian Prime Minister Now, Clarence Fernandes, the the Travel, Tourism and Hospitality
Narendra Modi, there is already chairman Rwanda Renaissance, Committee at the IMC Chamber of
increased interest in the country which markets Rwanda in India, says Commerce and Industry, said Indian
among Indian business people. following this, Indian business people investors are attracted by Rwanda’s
Modi’s two-day state visit was the first are increasingly exploring opportunities impressive credentials in good
by an Indian Prime Minister despite the in trade, tourism, and other investment governance, ease of doing business and
long-standing cordial relations between areas in ICT, healthcare, manufacturing the country’s policy on zero tolerance to
the leaders of the two countries. and finance. corruption, coupled with high levels of
“In Rwanda, every window of Modi visited Rwanda with a high safety and security.
opportunity leads to another window powered delegation of 100 business
of opportunity, which leads to a palace leaders and Clarence Fernandes says Indians already in Rwanda
of opportunity,” Modi told the Indian the country should be gearing up for According to Rwanda’s Private Sector

18 Aug 03 - 09, 2018


RWANDA
Federation (PSF) chairman, Robert countries and the rapid socio-economic be competitive on the local regional and
Bafakulera, 197 investors from India transformation that we both seek”. global markets,” he says.
have opened shop over the past six years, He said direct flights to Mumbai by He said poor quality and lack of
mainly in health, education, ICT, and the national carrier, RwandAir, were proper packaging have been some of
agro-processing. already facilitating travel and business. the main challenges which have affected
Dr. Jatin Uppadhyay, an academic Kagame said a pledge by Modi to market entry of local manufacturers and
cum businessman in Rwanda, is typical. open an Indian embassy in Rwanda SMEs over the years.
He has been in Rwanda for over 10 years soon will further strengthen the existing He said, however, he is confident that
and has invested in the hospitality sector. good bilateral relationship between the with support from Rwanda Standards
He mentions incentives for Indian two nations. Presently, the Indian High Board, issues of quality will soon
investors; including the government Commission in Kampala is also in charge be addressed through certification;
willingness to support investors to setup of Kigali. particularly products and firms targeting
in the country by requiring no security The President added that the the export market.
deposit or guarantee except for the RDB African Continental Free Trade Area The business leader says the
requirements, the use ICT in all areas of provides even greater opportunities for government has subsidised standard
business registration, tax filing or paying
taxes using mobile money.
“All these make it easy and cost
effective to do business in Rwanda,” he
told The Independent.
Clarence Fernandes added that
Indians who want to open businesses
in Rwanda are happy to easily get a
visa as long as they meet the minimum
requirements.
He, however, wants immigration to
clarify on how SMEs can recruit workers;
especially for skills that might not be
available in the local market
And Modi’s visit is being seen as a
trigger to greater trade relations between
Rwanda and India, and easing of
restrictions on local businesses exporting
to the vast Asian country, according to
the local private sector body.
“The visit marked a new dawn for
Rwanda,” says Bafakulera. “After the PM
Modi’s visit, we expect this number to
increase significantly.”
He says also expected are more Indian
tourists to Rwanda in coming years.
Bafulera says in meetings with
their counterparts from India who
accompanied the PM, they agreed
on future interactions with them and
how entry into the huge Indian market
could be eased from what it has been
previously.
Bafakulera says the private sector Indian Prime Minister Modi is entertained at Girika ceremony where he donated 200 head of cattle.
will take advantage of the growing
relations between Rwanda and India to
export more local products; especially investment and trade between Africa and certification charges for SMEs by 50%
agricultural produce and minerals. India in the years ahead. to encourage and enable more small-
Speaking at the business forum, and-medium enterprises to meet quality
President Paul Kagame said that as Determined to succeed requirements of export markets.
the country implements the Made-in- But as many local producers, This, Bafakulera says, will go a long
Rwanda initiative, it welcomes Indian particularly from Small and Medium way in helping the government to realise
investment, especially in manufacturing, Enterprises (SMEs) gearing to enter the its goal of increasing Rwanda’s exports
where India has great experience and Indian market, Bafakulera says they are by 17% by 2022.
know-how. struggling to meet quality standards. Meanwhile, the Indian Prime Minister
“Rwanda is keen to learn from the “There is now no option but to took off time to tour Rweru Model
renowned `Made-in-India’ experience, as improve production processes and Village in Bugesera District, Eastern
we implement our own Made-in-Rwanda product quality as well as packaging Province during the visit, where he
policy, particularly in the manufacturing, to benefit from markets like India that donated 200 cows to residents as part
construction and ICT sectors,” he boasts of 1.2 billion people,” he said. of his country’s support to the Girinka
said, “We are eager to get going and “We are working hard to ensure that programme. He was accompanied by
to maximise these opportunities for manufacturers and SMEs acquire the President Kagame.
the benefit of the people of our two necessary standards and quality for us to

Aug 03 - 09, 2018 19


news analysis

Paying more to avoid a tax


What reactions to social media tax reveals about attitudes

By Ronald Musoke levy on mobile money deposits and MP for Hoima Municipality, adding

F
withdrawals. Although this attracted that new taxes are needed if the
rank Tumwebaze, the Minister fewer furors, President Yoweri country is to develop.
of ICT and National Guidance Museveni ordered the tax rate down Compared to other EAC countries,
is puzzled by the current to 0.5% and only on mobile money Uganda’s tax to GDP ratio is one of
resistance to the social media withdrawals. the lowest at around 14%; Kenya’s
tax which his government recently The government expects to collect stood at 20%, Rwanda’s at 14.7%, and
introduced. between Shs 400bn and Shs 1.4bn Tanzania’s at 21.0% as per 2013/14
“Why don’t you want to contribute every year from the social media tax figures.
to your economy?” says Minister according to finance minister’s 2018/19 Bategeka says Ugandans have a bad
Tumwebaze, “Ask yourself how much budget speech of June 14. attitude to paying taxes.
you are spending on data for you to But many Ugandans are resisting “We have a culture of not wanting
download VPN to enable you bypass the new tax and some have resorted to pay taxes and (yet) the same people
capacity. If you are really a committed to using the Virtual Private Network want to live a good life,” he says, “If
Ugandan and want services from your (VPN) which remains out of reach Ugandans don’t want to pay taxes,
government, why are you motivated of the government. Many of those then we need to have a discussion and
to contribute money 30 times higher opposed claim the tax is double find an alternative, and in this case,
than the OTT tax to the innovator of taxation that also infringes on their that alternative is to downgrade our
the VPN?” lifestyles. ambitions as a country.”
Tumwebaze was on July 17 reacting Supporters of OTT tax say it is an But Albert Mucunguzi, the
to the evasion with which most opportunity for the government to chairperson of the ICT Association of
Ugandans have reacted to a Shs200 raise money internally and avoid Uganda says Ugandans do not have
(approx. 5 U.S. cents) daily tax on borrowing and reliance on donor aid. poor attitude to paying taxes. Rather,
the use of social media platforms like “We have a budget of Shs 33 trillion they rushed to install VPNs as a form
Facebook, WhatsApp, Twitter, Viber, and and we are only collecting Shs 16 of protest and to make a point to the
LinkedIn. trillion – the rest we borrow,” says government.
The government also imposed a 1% Lawrence Bategeka, an economist and Days before the government

20 Aug 03 - 09, 2018


news analysis
introduced the social media tax, the attitudes of Ugandans to being taxed, A 2013 Afrobarometer paper titled,
Makerere Institute of Social Research and their low compliance rates is `To Pay or not to Pay? Citizens’
(MISR) weighed in on the debate with widely shared. Attitudes towards taxation in Kenya,
a panel discussion on: “Tax Fairness: Julius Kapwepwe, the director for Tanzania, Uganda and South Africa’
How do government’s new tax programmes at the Uganda Debt also noted that tax compliance attitude
measures advance tax fairness?” Network says at this moment in time is positively correlated with the
Dr. Grace-Edward Galabuzi, a senior “Ugandans cannot afford to have a provision of public services in the four
research fellow at the institute argued state whose role is to cross its legs on countries.
that tax fairness is one of the attributes the other side, watch citizens suffer The researchers said attempts to
of a good policy because it plays a day and night to earn an income and broaden the tax base should build on
good role in tax reporting behaviour. then simply come to pick taxes”. insights into how citizens experience
“If a tax system is perceived to be “It is high time the state made its and perceive the tax administration
unfair or inequitable, it can breed tax and enforcement, and whether and
evasion and turn out less successful how their tax behaviour is correlated
and illegitimate,” he said, “Tax with their perceptions.
payers who are not satisfied with the The researchers noted that tax
treatment from the tax authorities and compliance is influenced by the
also from the government in terms extent to which citizens trust their
of return on taxes may seek ways of government. The researchers defined
evading those taxes.” legitimacy as “belief or trust in the
“Levying taxes on social media for authorities, institutions and social
instance may represent a real revenue arrangements to be appropriate, just,
boon, but is it fair or is it seen to be and work for the common good.”
fair? Are there alternatives that may The link between tax compliance
be better sources of revenue that the attitude and public service provision
government desperately needs?” depends on the specific service in
Dr. Galabuzi said if tax payers are question. For instance, while access
given voice and allowed to contribute Frank Tumwebaze to infrastructure such as roads and
to the process of decision making, it electricity encourage tax compliant
would suggest tax payers are valued attitude in Kenya, respondents
and respected by the authorities and in Tanzania and Uganda refer to
the government. education and health services as key
At the same discourse, Dr. Fred to their tax compliance.
Muhumuza, a development economist A 2013 OECD policy paper on tax
said a tax regime begins to be unfair and development also notes that
if the government brings taxes that citizens are more likely to perceive
are not pegged on the logic of fairness tax obligations more favourably when
but only inclined on one argument of their government is seen to be acting
revenue collection. in a trustworthy manner.
But for many others, like Adventino “A government seen to be making
Bajwa, a graduate student at the good use of tax revenue is associated
Makerere Institute of Social Research with higher levels of trust and tax
(MISR) in Kampala, the issue is clear; morale,” the OECD paper states in
taxation should go hand in hand with Lawrence Bategeka part, “Tax morale is at the heart of
the state’s role of providing public state building and the citizen-state
goods such as good quality education, relationship.”
health and security. fair share of investment upon which Minister Tumwebaze also sees the
Bajwa says currently, while the it earns its own income and then link between taxes and the services
government has privatized many of it can ask the rest of us to make a from the government. But he insists
these public goods, it continues to contribution.” Ugandans should pay the tax first if
demand taxes. He says that is unfair. Their views fit in with the findings they want to demand services from the
“At a time when former public goods of a recent study on taxation in government.
are going private full scale and we Uganda by the Southern and Eastern As the debate rages, however, some
are yet to pay for roads in Uganda, it Africa Trade Information and officials say the government’s next
is perplexing that the debate around Negotiations Institute (SEATINI) move will be to block the VPN.
taxation proceeds as though the state that Uganda lacks such fiscal Godfrey Mutabazi, the
has not changed a single bit since the contract between the people and executive director of the Uganda
colonial days. the government. The researchers Communications Commission (UCC)
“More than ever before in our concluded that as a result, tax morale which regulates social media says
history, the most urgent debate today is either non-existent or very low. the government already has the
is not on whether taxes are fair or not Instead, the researchers said, required software. Mutabazi adds
but whether there is still need to pay high levels of corruption and that individuals who circumvented
taxes,” he says. mismanagement of tax revenues, the Over the Top (OTT) services tax
Bajwa’s views may be more extreme uncertainty and a lack of system could also be penalized with
than most and he may have spoken communication about the use of surcharges. To this camp, it appears,
before the recent taxes, yet his tax revenues, and poor delivery of better tax compliance enforcement and
insistence on a link between the low public services, contribute to citizens’ not attitude change is required.
government service delivery and the unwillingness to pay taxes.

Aug 03 - 09, 2018 21


news analysis
clarified earlier in June on his support for
Basalirwa. “We have seen him crisscross courts
of law- from the lowest to the highest, defend-
ing opposition leaders, representing activists
and arguing the case for good governance and
human rights for all. In 2016, we saw him
aggressively argue the presidential election peti-
tion,” he wrote.
From the Bugiri election, Kyagulanyi has
emerged as a political force to reckon with
even though Basalirwa seems to downplay
it.
“Bobi Wine found me in the struggle
which I joined in 1998, what people need to
know is that we have been around for some
time. There’s nothing like a third force but
he represents a generation that believes,”
the former Guild president at Makerere
University said when asked about the influ-
ence of the singer turned politician on his
election victory.
However some sources in Bugiri say
Basalirwa has Kyagulanyi to thank for his
new fortunes. “He was not popular. He
only won because of the Bobi Wine effect,”
Asuman Basalirwa and Bobi Wine in Bugiri. Waiswa Batambuze, who hails from Bugiri

Bobi Wine beats


told The Independent.
After leading a social media tax protest
in Kampala streets and helping Basalirwa
clinch a parliamentary seat in one month,

Besigye in Bugiri
observers are looking out for the next card
Kyagulanyi will play in a field dominated
by Museveni and Besigye.

Tumwesigye takes Sheema


Meanwhile, Elioda Tumwesigye, the
NRM takes Kotido, Ibanda, Sheema, Nebbi Minister for Science and Innovation, was
declared MP-elect for Sheema municipality
after beating FDC’s Virginia Plan Mugyenyi
By Ian Katusiime formed dismally in several parliamentary with a comfortable 2000 votes. In his first

A
elections held in municipalities on the same press conference after the victory, Tum-
suman Basalirwa, the MP-elect for day, July 27. wesigye accused the FDC of rigging votes
Bugiri Municipality, confesses that The Bugiri municipality election got extra whenever it takes part in elections.
people had always addressed him attention because of the actors involved. Tumwesigye’s win means there will be
as a Member of Parliament before When Kyadondo East MP Robert Kyagu- a by-election in Sheema North which he
the just concluded election that sent him to lanyi backed Basalirwa three months ago, represents.
the August House for the first time. During it set the tempo for the election because he But the FDC team protested the election
a television interview on the morning of was going to lock horns with FDC, a party outcome. Supporters of Mugyenyi say she
July 30, Basalirwa revealed that officials in he allied with to defeat the ruling NRM in was in the lead in the night of the election
government and those who meet him in the two by-elections; Jinja Municipality East count only for Tumwesigye to be declared
various places his political work takes him, and the Rukungiri Woman MP seat. winner shortly.
constantly addressed him as “Honourable”. The contest in Bugiri was also seen as a Mugyenyi issued a statement a day after
He mentioned the times when he turf war between Dr Kizza Besigye, former the poll decrying a heavy presence of the
appeared in court and was addressed as an FDC president and four time presidential army, arrests of her agents, intimidation
MP and at various events organised by the flag-bearer, and Kyagulanyi also known as and bribery of voters.
Opposition. However he had stood three Bobi Wine whose popularity as a musician In Ibanda, Tarsis Rwaburindore of the
times unsuccessfully for the parliamentary saw him romp to victory in 2017 in a parlia- NRM was declared winner of the Ibanda
seat of Bukooli North, in Bugiri district, and mentary by-election. municipality parliamentary election with
lost. Before the nominations, JEEMA and a total of 13,331 votes. Peter Agaba, an
“Winning an election is a very exciting FDC were in talks to have Basalirwa as the independent candidate came second with a
and satisfying thing because we go through joint candidate but the talks yielded noth- total of 12,850 votes and Alex Byarugaba of
a lot,” he says now. ing and the two camps traded some harsh the FDC came third. The ruling party also
Basalirwa who is the president of the little words against each other. Basalirwa’s camp won in Kotido with Peter Abrahams Lokii
known JEEMA party bagged 3,928 votes to felt betrayed by FDC, saying Basalirwa scooping 4,248 votes against a measly 137
beat his closest challenger, Francis Oketcho, had always fought FDC legal battles on of FDC’s Moses Oriono Okot. In Nebbi, the
of the NRM who polled 3,267 votes. The the many instances party supporters were NRM’s Hashim Sulaiman trounced FDC’s
FDC candidate Eunice Namatende came detained on frivolous charges. Robert Onega by 324 votes when he polled
third with 928 votes and the party per- On the other hand Kyagulanyi had 4,483 against the latter’s 4,159 votes.

22 Aug 03 - 09, 2018


comment
By Andrew Mold
Africa’s narrow growth path
That over 60 years Africa’s economy has been outperforming
the global average should be a cause for celebration

T
his year marks the 60th anniversary not income per capita growth, which has never grew in excess of 2-3 percent –
of the establishment of the United been below the global average for the barely enough to keep up with the demo-
Nations Economic Commission period (2.5 vs. 3.2 for the world). When graphic growth of the country. Only in
for Africa (UNECA). Against the we compare this performance to the so- the 1990s did the economic performance
opposition of the former colonial powers, called ‘Asian giants’ (China and India) of India start to take off.
UNECA was set up in Addis Ababa in over the same period, that trajectory has So the performance of the two Asian
1958 to provide technical support and as been much less satisfactory - the average giants does suggest that, in the face of
a platform for African countries to discuss per capita income in China today is 13 setbacks, rapid catch-up can be achieved
and find solutions to mutual challenges and times larger, and India 6 times – com- with subsequent bursts of sustained
problems. It was an auspicious time. The pared to incomes in 1958 (see Figure 1). growth.
year before, Ghana had become the first
Figure 1: Growth of Population, Economy and Incomes 1958-2018
African state to achieve independence, in (multiple times 1958 values, calculated using constant prices)
what was soon to become a tidal wave of The other big difference between the
African countries reclaiming their sover- African continent and the Asian Giants
eignty. Yet at UNECA’s inaugural meeting is that for India and China, the demo-
in December 1958, there were still only 10 graphic contribution to growth has been
independent African countries represented small - just a quarter of all Chinese and
on the continent – the four African founding a third of Indian growth, compared
member states of the UN – Egypt, Ethiopia, with nearly two-thirds in the case of
Liberia and South Africa, plus six newly Africa (Figure 2). Income growth for the
independent countries – Ghana, Guinea, Asian Giants has clearly been driving
Libya, Morocco, Tunisia, and Sudan. The the expansion of the economy in a way
population of the whole continent in 1958 which has been far more subdued for the
was just 270 million. African continent.
Source: UNECA, calculated from data
How times have changed! Sixty years from the Maddison Project (2018) Figure 2: Percentage Contribution of Income and Population
later, Africa now comprises 55 indepen- Growth, Africa, China and India Compared, 1958-1960
dent member states – and a combined
population of 1.2 billion - four times In defence of that performance, it could
larger than in 1958. But the economy has be argued that Africa has suffered during
expanded even more rapidly, and is 11 the 1980s and 1990s from several decades
times larger (measured in real terms - i.e. of lost growth, when the continent suf-
discounting the effect of inflation). Our fered from a pernicious combination
economies are also more dynamic. of an adverse international economic
According to the World Bank , six of climate (particularly low commodity
the ten fastest growing economies in the prices), a period of politically instability
Source: UNECA, calculated from data from the Maddison Project (2018)
world are currently located in Africa – and heightened conflict against the back-
and Eastern Africa is especially blessed, drop of the Cold War, as well as exter-
with three of those economies being nally imposed programmes of austerity This last point is of course the real chal-
located in our sub-region (Ethiopia, (in the guise of Structural Adjustment lenge. While the African economy has
Djibouti, and Tanzania), with Rwanda Programmes). Per capita incomes during expanded massively since the late 1950s,
not far behind. It would not be too pre- this period actually declined for the by global standards continental income
sumptive to claim that today the African majority of countries in Africa – living growth has still been modest. To achieve
economy is stronger and more resilient standards were, in effect, deteriorating. higher living standards and meet the
than at any other time in its history. But those explanatory arguments can developmental aspirations embodied in
This is a useful juncture to look back only be taken so far. India and China the African Union’s 2063 Agenda, over
at some of the economic and social also suffered comparable ‘lost decades’ the coming decades the growth of the
trends which have got us where we are – in the 1960s and 70s, China suffered African economy should not be primarily
today. Between 1958 and now, while all the dislocation associated with the population but rather income-driven.
the African economy has expanded in ‘Great Leap Forward’ and the ‘Cultural Over the long-run, that is the true conun-
real terms 11-fold, the global economy is Revolution’. After the death of Chairman drum which the continent must confront
only 8 times larger. This in itself should Mao in 1976, it took several years before and resolve.
be a cause for celebration, as Africa has political stability was re-established
clearly been outperforming the global and a reform-minded President (Deng Andrew Mold is the Acting Director Sub-
average. Xiaoping) finally took over. Regional Office for Eastern Africa of the
There is an important caveat, however. In India, up until the early 1990s, the United Nations Economic Commission for
The better performance of Africa com- country was considered to be suffering Africa
pared to the global average is explained from the ‘Hindu rate of growth’ whereby
principally by our demographics, and an overregulated and sluggish economy

Aug 03 - 09, 2018 23


news analysis

Musician turned politician Robert Kyagulanyi (C) is joined by other activists on July 11, 2018 in
Kampala, Uganda during a protest against a controversial tax on the use of social media. /AFP

Africa’s attack on
internet freedom
While Washington turns a blind eye, autocrats across
the continent are muzzling their citizens online
By Hilary Matfess, Jeffrey Smith country was not there yet. muzzle free speech and dissenting

I
Less than one year later, a number of political views.
n August 2017, during a new media popular Tanzanian websites that had Tanzania and Uganda are the latest
roundtable between leaders from been critical of the government were nations to fall victim to a wave of
China and Tanzania, the Tanzanian taken down in June to avoid hefty fines internet censorship that has been
deputy communications minister imposed as a result of the country’s new inspired and exported by autocratic
praised the Beijing government for internet regulations that were passed powers such as China and Russia, as
blocking social media platforms in March. The new laws, including well as totalitarian regimes like North
in China and replacing them with similar ones imposed effective July Korea. These restrictions are often
“homegrown sites that are safe, 01 in Uganda, are the latest in a long implemented under the guise of public
constructive, and popular.” The and troubling succession of restrictive order and security. These days, abusive
Tanzanian minister lamented that his measures enacted across Africa to leaders with authoritarian tendencies

24 Aug 03 - 09, 2018


news analysis
as Museveni — who has been in power ability to intercept and delete images
for 32 years — are exploring new being sent electronically in one-to-one
methods to block opposition forces and chats. Turkish President Recep Tayyip
halt political mobilisation. Erdogan called Twitter a scourge and
The Tanzanian and Ugandan promised to eradicate it at a rally in
governments demonstrate that 2013; since then, his government has
illiberal governments will go to overseen multiple suspensions of access
great lengths to restrict speech in the to social media sites and prosecuted
digital realm. By doing so, they are citizens for political speech online.
strengthening negative norms and Across sub-Saharan Africa, free
landing a formidable counterpunch expression is being unjustly curtailed,
to the once perceived inevitability of and the internet is increasingly being
online mobilisation and the widening used by authorities to censor and
of democratic space. No amount of surveil citizens, often with a focus on
technological innovation will stop independent journalists, civic activists,
anti-democratic governments from and vocal opposition leaders who are
co-opting and manipulating the internet seen as threats to the government.
to entrench their power. This sort of manipulation presents a
When legal restrictions — and old- clear threat to democratic values by
fashioned economic intimidation constraining the internet’s potential to
— have failed to muzzle dissent and act as a virtual public square and by
popular mobilisation, governments preventing the rise of a robust digital
have turned to more extreme methods: fourth estate.
internet shutdowns. From January 2016 There was a time when democracy
to December 2017, the internet advocacy activists in these countries could have
group Access Now documented more expected backing from Washington.
than 180 such instances worldwide, But despite mounting evidence of
including a 93-day blackout in authoritarian regimes flexing their
Cameroon, the longest recorded over collective muscle online, the United
States has been asleep at the wheel.
The U.S. government — under
both Democratic and Republican
There was a administrations — has traditionally
been a global standard-bearer for
time when freedom of expression. Today,
Washington’s failure to speak out and
democracy stand up for internet freedom has global

activists
consequences.
are no longer compelled to rely heavily In addition to the harsh new laws
on baton-wielding security forces and
brute violence to entrench their personal in these in Uganda and Tanzania, Zambia also
now requires WhatsApp and Facebook
power and prevent criticism. This
“rule by law” method, popularised by
countries group administrators to register with
the government — and is threatening to
Vladimir Putin’s regime in Russia, allows could have punish users for promoting what it calls

expected
leaders to manipulate legal processes “false information.”
for their own purposes while avoiding In Zimbabwe, a new Ministry of
the international condemnation that
typically comes with images of brutality. backing from Cybersecurity, Threat Detection,
and Mitigation — reminiscent of the
In recent days, Uganda has seen
protests against a social media tax of
Washington North Korean model — will focus
on eliminating “abuse and unlawful
Shs200 (US5 cents) per day that would, conduct” in cyberspace like a “trap
in the words of President Yoweri used to catch rats,” according to
Museveni, put an end to “gossip.” His this time period. Importantly, these a government spokesperson. At a
real objective, it seems, is to muzzle assaults on basic human rights do not time when the country may be at
dissenting voices. Both the unrest and occur in isolation and often form part a democratic inflection point, the
the government’s harsh response to of a broader campaign against freedom continuation of such policies under
criticism (which included firing tear and democratic principles. The concept President Emmerson Mnangagwa
gas and live rounds at demonstrators) of internet sovereignty, promoted by suggests that the anti-democratic
suggest that the current governance of autocratic states such as China and tendencies developed under deposed
the internet and technology is not only Turkey, means that the web is now a President Robert Mugabe could
itself anti-democratic but might also censored spigot that can be turned on undermine the country’s democratic
facilitate other anti-democratic practices. and off at the government’s discretion. transition. This anti-democratic
It’s not surprising that elites feel China, for example, moved this year to initiative revealed that Mnangagwa is
threatened. After all, vibrant social media ban virtual private networks (VPNs), not so different from Mugabe when it
platforms, a critical and unflinching which are often used to circumvent comes to curtailing freedom of speech.
press, and free expression have the government censorship of the internet;
potential to level the political playing in 2017, it was reported that the Source: FP magazine
field. Entrenched African leaders such government had demonstrated the

Aug 03 - 09, 2018 25


interview

ICC cannot exist without


support from African states
The International Criminal Court (ICC) marked its 20th anniversary on July 17. Maria Mabinty Kamara,
the ICC Outreach Officer for Uganda spoke to Ronald Musoke on why the court remains important

How would you rate the performance of community. These include sexual violence, should be conducted, but where and when.

T
the ICC over the last 20 years? destruction of cultural heritage, and use
he creation of the Rome Statute in of child-soldiers in hostilities, to name What’s your view on the continued
1998 was a historic event in itself, a few. It took the work of thousands of accusation by some African heads of state
marking a landmark in efforts diplomats, human rights activists, and that the ICC deliberately targets African
towards justice and accountability lawyers to build a permanent International presidents yet the same violations happen
for serious crimes. The crimes under the Criminal Court and the Trust Fund for elsewhere in the world?
ICC jurisdiction are the Victims. Today, with 123 states parties, ICC’s focus is not on a specific continent,
most serious crimes with a fully-functioning ICC and very country, party, or community. Its mission
of concern to the busy Trust Fund for Victims, justice is to prosecute the perpetrators of the most
international is in motion. Our institution may serious crimes and to establish justice for the
not be perfect and more work benefit of victims and future generations.
surely needs to be done but The ICC is not a western institution
the global movement for (because) over 120 countries are states
accountability that started parties to the Rome Statute, representing
20 years ago is alive. all regions. The perception that the ICC is
People worldwide are focusing on Africa is reducing the continent
now asking for their to 20 suspects, instead of seeing Africa
leaders to be held in the face of thousands and thousands
accountable. The of victims. Of the court’s on-going 11
question is not if investigations, five were referred to the
trials court by the concerned African states
parties themselves (Uganda, Democratic
Republic of the Congo, the Central African
Republic and Mali) recognising the inability
to address the crimes at stake at the national
level, and two were referred by the United
Nations Security Council (Darfur and
Libya) where African states are represented.
In addition to that, Côte d’Ivoire voluntarily
accepted the jurisdiction of the court, giving
the prosecutor the possibility to open an
investigation. In Kenya, it was the political
scene that prevented the Kenyan authorities
from self-referring the post-elections
violence to the court, so the ICC prosecutor
opened an investigation, with the chamber’s
authorisation, but only after thorough
discussions with the Kenyan authorities.
Moreover, the ICC-Office of the Prosecutor
(OTP) has also opened an investigation
in Georgia and developments in this
investigation should be up coming. The
ICC-OTP is also conducting preliminary
examinations on other continents,
including Afghanistan, Colombia,
Iraq, Palestine, and Ukraine. The
court would not exist without
the strong support of African
states and civil society who
were actively involved in
the court’s establishment.
33 African states have
ratified the Rome
Statute, making

26 Aug 03 - 09, 2018


interview
Africa the most represented region in the concerns in the courtroom. 
court’s membership. The court has also
benefited from the professional experience What do you make of the fact that some
of Africans. At the ICC, four out of the 18 The expectations victims have died without seeing justice
current judges of the court are African.
and challenges done to perpetrators like Dominic
Ongwen and Joseph Kony?
What do you make of sentiments that until
some states that seem to be “bigger than
are high. But I We understand the feeling of anxiety
of the victims and we have deep concern
global justice” ratify the Rome Statute, the
work of the ICC will remain a farce?
hope the ICC will and sympathy for them. However, the
ICC cannot try suspects in their absence.
Ratifying an international treaty is a benefit from a The ICC has no police force and therefore,

stronger states’
sovereign matter and all states have a the cooperation of states with the court
sovereign right to decide to join or not. is highly needed to effect ICC arrest
The ICC is, however, keen on promoting
the universality of the Rome Statute and cooperation warrants. What was created in Rome was
not an autonomous court but a global
dispelling misperceptions about the ICC.
While 60 states were needed for the statute
to meet these system designed to incite states to assume
responsibility for investigating and
to enter into force, over 120 nations have challenges prosecuting the most serious crimes and
now joined the system. The referral by a to cooperate with the ICC to implement its
unanimous decision of the UN Security mandate. As noted by a community leader
Council is a demonstration of the growing from Abok at a recent ICC outreach session:
confidence placed in the ICC as an “The community screening of the trial of
independent judicial institution by those screening, medical referral and support Dominic Ongwen not only demystifies the
states.   Note that even though some states for victims who have suffered from complex judicial processes, it makes them
are not parties to the Statute, it does not gynaecological/reproductive complications) more relevant and meaningful to victims
prevent them from cooperating with the and psychological rehabilitation (such and affected communities.”
court in a number of areas such as seizing as individual and group-based trauma
and freezing of assets, witness protection, counselling; community sensitisation What new mechanisms of criminal justice
or arrest. One of the best ways to convince workshops; direct mental health services is the ICC looking at to rein in more of
states that are still reluctant to join the and clinical mentoring to counsellors). the perpetrators of gross human rights
statute is for the ICC to continue showing violations?
that it is successfully fulfilling its mandate. For many followers of proceedings at the In general, the ICC welcomes any
ICC, the process remains too technical, initiative to ensure justice for the victims
In Uganda, what would you say has been slow and quite limited for the victims through genuine national and regional
the ICC’s proudest moment in delivering of the northern Uganda war. How have judicial mechanisms as long as those are
justice to the victims of the war in the you helped ordinary people follow the compatible with the Rome Statute— the
north? proceedings in a simplified manner? court’s founding treaty. The ICC is not
The opening of the (Dominic) Ongwen ICC proceedings are indeed processes meant to replace all other courts but to
trial marked a new phase in the court’s of law that can be technical for the complement them.The ICC is already
activities in Uganda. This turning point general public. However, ensuring that cooperating with regional and hybrid
has had an impact on the intensity of our the communities most affected by the courts, such as the recently-created special
outreach activities in Uganda. While they cases before the ICC have access to and court in the Central African Republic, in
had started long ago, our activities have understand the judicial proceedings the extent possible and in full respect of its
intensified with an actual trial ongoing at all stages, is a priority for the court. mandate and independence. 
regarding alleged crimes in the region. Special efforts have been made by the
court to render the proceedings accessible Going forward, what will be the focus of
Any personal reflections from your to communities in northern Uganda. the ICC over the next 20 years?
outreach work? While they had started long ago, our  The expectations and challenges are
On a personal level, it brings me a activities have intensified with an actual high. But I hope the ICC will benefit from
sense of pride to note the progressive trial ongoing. We have launched the a stronger states’ cooperation to meet these
understanding communities have “Access to Justice” project to respond challenges. For example, regarding the
reached on the ICC mandate and the to the information demands of affected situation in northern Uganda, one suspect
trial of Dominic Ongwen. We have been communities on the ongoing trial, including is still at large, and the cooperation of states
together in this journey for over ten through video screening equipment at 23 with the court is highly needed to effect this.
years. I have witnessed an evolution of locations; interactive radio programmes This is the same for all other suspects who
questions and trends from the basic to the and listening clubs with the affected people; have pending arrest warrants against them.
sophisticated as well as growing interest as well as activities with cultural, religious I hope the ICC will continue developing
to follow ICC judicial proceedings. But leaders as well as journalists.  Furthermore, as an innovative and impartial court of
the other important aspect of the Rome as we have done in the past few years, the law and acting as a model for the highest
Statute impact in Uganda is the ongoing ICC continues working in partnership with standards of fair trials. Governed by the
activities of the Trust Fund for Victims, local and international actors present in the complementarity principle, the ICC can
with nine projects in 18 districts of northern north to ensure the timely dissemination play a role in inciting the governments to
Uganda. Those projects developed of the information at different levels. strengthen their national judicial systems to
together with implementing partners have The victims formally participating in the build, collectively, a more just world.While
included physical rehabilitation (such as proceedings also have a privileged and the ICC has two-thirds membership of
reconstructive surgery, general surgery, regular contact with their lawyers, helping sovereign states, it would need more states
bullet and bomb fragment removal, them to better understand the proceedings to join to become truly universal.
prosthetic and orthopaedic devices; but also to bring back their views and

Aug 03 - 09, 2018 27


Uganda Airlines and the
‘orphaned’ Airbus A300-800 neo
Aircraft might be difficult to maintain, finance or resell
By Isaac Khisa Experts said Hawaiian Airlines was trad- need a concerted effort to further liberalise

O
ing cautiously arguing that managing such to promote growth of intra-Africa connec-
n July 18, Uganda’s aviation sec- ‘orphan’ aircrafts is more difficult to main- tivity.” In addition, competition is grow-
tor marked a new beginning. The tain, finance and resell. ing as other African countries revive their
government signed agreements But Monica Azuba Ntege, the minister national carriers and plan major expansions.
with two aircraft manufacturers, for works and transport insists that Uganda For instance, Air Tanzania, which is
Airbus and Bombardier, for delivery of made the right choice following a careful barely two years in operation, plans to start
six airplanes during the Farnborough Air analysis of technical and financial speci- direct flights from Dar es Salaam to Entebbe
Show, ahead of the planned launch of a na- fications of the companies that expressed and Bujumbura later this month, the routes
tional carrier next year. interest. She said government received that have been dominated by Kenyan and
The Airbus is set to deliver A330-800 New proposals from Airbus, Bombardier, and Rwandan national carriers.
Engine Option abbreviated as A300-800neo Boeing but after careful analysis, they chose Air Tanzania said it will charge US$363
while Bombardier will deliver CRJ900. the first two. She said the government has for a return ticket to Entebbe, flying on
But the announcement has elicited both already paid US$400,000 to Bombardier and Monday, Wednesday, Friday and Sunday.
excitement and questions in equal measure US$800,000 to Airbus to facilitate the aircraft Its Bujumbura customers will pay US$358
with regard to the choice of A300-800neo manufacture. The government plans to for Tuesday, Thursday and Saturday flights.
aircraft. Launched at the Farnborough purchase the A330s at US$293 million and This is lower than the average of US$390
Airshow in 2014, the A330 neo aircraft is a CRJ’s at US$190 million each. that travellers to Bujumbura and Dar es
replacement for A330-200, powered by new On cancellation of the A300-800 orders by Salaam via Nairobi, Kigali or Addis Ababa
Rolls-Royce Trent 7000 engines and also fea- earlier carriers, Azuba said there are many pay, with an additional three to six hours
tures zero-splice nacelles, titanium pylons reasons as to why an airline may cancel an connecting time.
and new winglets. aircraft order. “The change of order by the
While the aircraft was designed simul- (Hawaiian) Airline was mainly on political Enter President Museveni
taneously with the A330-900 – the better- grounds according to our sources,” she said. Plans to revive the national carrier gained
selling of the two, with 214 orders – the 800s She said the A330-800 variant will have momentum on Dec 31, 2016 when President
have failed to attract buyers. a shorter fuselage (the main body of an Yoweri Museveni said in his New Year
The 257 seater aircraft flies longer and aircraft) allowing it to fly longer and further message that the government had finalised
at less fuel compared with the A330-900, than the current 900 version. a plan to revive the carrier in a bid to ease
although the latter carries 50 more passen- This performance, she says, will enable travels in and out of the country and reduce
gers. The sole customer -Hawaiian Airlines, Uganda Airlines to operate non-stop flights on Ugandans’ expenditure on foreign air-
which had ordered six A330-800s in 2014 as on long routes to China and the Middle lines. Started nearly four decades ago, the
a strategy to replace its aging fleet cancelled East. Uganda’s move to revive the national Uganda Airlines, then popularly known by
the deal in March this year, in favour of carrier comes at the time the airline indus- its slogan ‘Flying Crane’, was liquidated by
Boeing 787-9s. try in Africa is projected to make a loss Museveni’s government in 2001 as a result
Hawaiian Airlines, which operates an of US$100million this year, the same loss of mismanagement and an accumulated
existing version of the A330 on flights to recorded in 2017, according to the Interna- debt of $6million.
Asia and the US, cited lack of interest for tional Air Transport Association (IATA). Government officials argue that more
the aircraft by other carriers as the main “While traffic is growing, passenger load Ugandans are now spending on air travel
reason for cancelling the deal. This followed factors for African airlines are just over 70% amounting to US$420million per annum
previous cancellations of similar aircraft by which is over 10 percentage points lower and that it is time to tap into the sector.
TransAsia Airways before collapse. than the industry average,” the report states Uganda’s international annual air traffic
The Boeing 787-9 is a stretched variant of in part. “With high fixed costs, this low has grown more than 10 fold to 1.5million
the 787-8 aircraft. The aircraft, with a seat- utilization makes it very difficult to make a in 2017 and is projected to reach 7.6million
ing capacity suitable for 250-290 passengers, profit. Stronger economic growth will help by 2033, according to the sector regulator,
consumes 20% less fuel than any other air- in 2018, but the continent’s governments Civil Aviation Authority.
craft in its class.

28 Aug 03 - 09, 2018


Business

Africa-India trade declines


to US$55bn-Report
Uganda plans to intensify relations in trade and investment
By Julius Businge

T
rade between Africa and India has
recorded a 30% decline in volume
from US$78billion in 2014 to about
$55 billion in 2017 citing a tough
economic environment.
However, this was more than seven times
higher 17 years ago when the trade volumes
stood at merely US$7.2bn.
These figures are contained in a report
jointly produced recently by the African
Export-Import Bank (Afreximbank) and
Exim Bank of India (Exim India) titled;
Deepening South-South Trade: An Analysis of
Africa and India’s Trade and Investment.
According to the report, these latest
figures make India, Africa’s fourth-largest India's Prime Minister Narendra Modi (L) and President Museveni at State House Entebbe
national trading partner.
More trading by the two counterparts this rose from US$11.9billion in 2010 to Yoweri Museveni held bilateral talks on
means increased demand for goods and US$15.2 billion in 2014. Over the same trade, investment and tourism among other
services, creation of job opportunities, tech- period, Africa’s FDI stock in India increased areas. Modi also met the Indian business
nology and skills transfer which all feed into from US$57billion to US$73.3billion, with community in Uganda and also addressed
the performance of the two economies. investments in such sectors as oil and gas, Members of Parliament on trade and related
The report notes that trade accounted agriculture, retail, healthcare and telecom- matters.
for more than 6.8% of total African trade munications.         Observers lauded Modi for his visit and
in 2017, up from 2.7% in 2001, with trade In addition, India’s development coop- were optimistic that his coming would
with Africa now accounting for about 8% of eration with African countries has evolved strengthen bilateral relations between
India’s total trade. to incorporate varied avenues such as trade Uganda and India. The same is expected
The report says that Africa’s exports to and investment, capacity building, technol- between Indian and Rwanda, and South
India remain essentially concentrated in ogy transfer, and grants and concessional Africa where, Modi met the presidents, the
crude oil and primary commodities while loans. Indian Community, other groups and dis-
India’s exports to Africa are more diversi- cussed trade and related issues.
fied and include more manufactured and Below potential Modi announced that India would
technological-content products. Despite the growth in trade numbers extend credit worth US$200million to boost
It says that Africa’s ongoing efforts since 2001, the report indicates that the two Uganda’s investments in key sectors of
at diversifying sources of growth and partners were not yet operating at their energy, infrastructure and manufactur-
structural transformation would see the full potential, attributing this to a number ing. Analysts welcomed this facility which
composition of trade evolve to include a of constraints, including finance, infra- would support priority sectors of develop-
greater proportion of manufactured, non- structure, capacity and market access, with ment detailed in the National Development
traditional and agro-processed exports from access to finance singled out as a major Plan II and Visions 2020 and 2040.
Africa to India. inhibiting factor to trade. Critics however, say government should
An assessment conducted as part of the The joint study was conducted by strengthen mechanisms of spending and
study estimated the value of the bilateral Afreximbank and Exim India as part of monitoring projects that will be funded by
trade potential between Africa and India to the ongoing collaboration to accelerate the this credit facility so as to achieve desired
be in excess of US$42 billion per annum. transformation of the economies of their results.
The study also showed that the attractive- member countries through innovation in For many years, Uganda has been a key
ness of Africa and India as investment desti- trade finance and expansion of South–South trading partner with India having recorded
nations had risen in recent years, driven by trade. about US$58million as total value of exports
strong economic growth, an improved busi- for the last five years, according to data
ness environment and better investment The timing from Bank of Uganda.
climate and regulations, high rates of return The report was released ahead of the visit Similarly, the value of exports to Ugan-
on investment, and a rising consumer mar- of India’s Prime Minister, Narendra Modi to da from India have totalled to approx.
ket, among others. a few selected African countries – Uganda, US$1.5billion in the same period.
In terms of India’s foreign direct invest- Rwanda and South Africa.
ment (FDI) stock in Africa, the report says, While in Uganda, Modi and President Additional reporting by Isaac Khisa

Aug 03 - 09, 2018 29


Business

Insurer boosts Uganda’s


renewable energy projects
The African Insurance Agency will support solar PV, hydro,
wind, geothermal, biomass and cogeneration technologies
By Isaac Khisa

T
he multilateral insurer, African
Trade Insurance Agency (ATI),
will provide up to US$10million as
financial protection to new small
and medium-sized renewable energy
projects in Uganda to facilitate their
smooth operations in times of delayed
payments.
ATI Chief Executive Officer, George
Otieno, said during the signing of an
agreement with the government in
Kampala on July 27 that the prospective
Independent Power Producers (IPPs)
will benefit from this initiative upon
payment of 3% of the value of the project
as premium.
The new initiative that targets IPPs
with up to 50MW, and in exceptional
circumstances up to 100MW, will be
extended through the Regional Liquidity Minister of Finance, Matia Kasaija (L) and ATI CEO, George Otieno (C) displays agreements
Support Facility (RLSF). signed on July 27, 2018. The agreement paves way for ATI to offer protection to new small
RLSF is a US$74million joint initiative and medium-sized renewable energy projects countrywide
of ATI and KFW with funding from
the German Ministry of Economic to US$500million spent in the last decade other shareholders its first ever dividend
Cooperation and Development. It is on improvements to the grid,” he said. this year after recording a 55% growth in
intended to protect IPPs in the Sub “With this agreement, we see a RLSF net profit to US$9.9million in 2017.
Saharan Africa. providing a perfect complement to our The dividend payment came after the
“ATI, as a manager of the facility, will ongoing strategy of accelerating the General Assembly of ATI approved it at
instruct a bank to issue letters of credit to delivery of clean energy to the national the Annual General Meeting (AGM) held
approved Independent Power Producers grid.”Executives from the energy ministry in Abidjan, Ivory Coast.
(IPPs) with the backing of RLSF,” he said. said the new initiative will help remove ATI has earmarked an initial
Otieno said although the letters of liquidity risks and ensures success of IPPs. US$2.5million in payments to its
credit are traditionally valid for a year, the Since it was established in 2001, ATI has shareholders which include 14 African
bank will issue letters of credit with tenors provided insurance coverage to projects member governments inclusive of Uganda.
of up to 10 years. in virtually all sectors including energy The multilateral insurer recorded
This comes as the GET FiT programme projects in Tanzania, Kenya and Zambia, gross exposures of US$2.4billion and, in
report 2017 reveals that an installed mining and oil projects in the Democratic the same period, the company covered
capacity of 158 MW of clean renewable Republic of Congo, Malawi and Zambia, investment and trade activities across the
energy shall be added to the national grid manufacturing and infrastructure projects continent valued at US$10 billion.
from 17 projects in the coming years. in Rwanda, Uganda, and Kenya, and ATI owes its strong results in part to
The report noted that six of the 17 telecommunication projects in Burundi, growing demand from investors and
projects have been commissioned and Madagascar. In Uganda, the agency African governments for their products as
with significant construction progress specifically provided coverage to, among the continent continues to position itself as
registered on the majority of the others, Kalangala Infrastructure Services, an attractive destination for investors.
remaining projects. Pearl of Africa Hotel and the ongoing The African multilateral insurer also
Finance Minister, Matia Kasaija, construction of the 600MW Karuma announced the Indian government’s 5%
said the new development reflects the Hydropower Dam. In Rwanda, the agency shareholding worth US$10million that will
government’s commitment to ensuring provided support to RwandAir. be represented by Export Credit Guarantee
the viability of small and medium sale Corporation of India.
renewable energy projects. Profitability
“Uganda has a solid history of Last month, ATI announced that it will
supporting our public concession, with up pay its African member governments and

30 Aug 03 - 09, 2018


Executive Style

Solar is Uganda’s best


energy solution
What is the significance of agriculture, and mobile
the US$25,000 grant that you clinics where these would
received from TDB Group run completely on solar
for the people of Nakivale energy. In agriculture, we
Refugee Settlement and the are looking at solutions to

I
entire country? power milling plants.
n the refugee
settlements, access to How best can government
power, information, go about solar energy
and basic necessities in its service delivery
are inadequate. There are programmes?
numerous entrepreneurs, Like I said earlier,
students, and farmers who government has put a lot
can create opportunities for of focus on oil and gas
themselves. However, the and hydro-power. Solar
lack of basic infrastructure hasn’t got its day. There are
hinders many people in these subsidies in other sectors
camps.  With access to energy but solar does not have
and internet we can raise the such offers. If we have
standard of living for many voices pushing government
in this community. Access to for better policies, the
ICT services allows people investment in solar will
to earn income beyond the have to grow with time
confines of their communities. Esteeri Kabonero is the managing director for Powah costs will decline as more
Digital services push people Limited, a solar solutions energy company operating and more people demand
from informal to formal in Uganda. She spoke to The Independent’s Julius for solar solutions. Uganda
businesses, establish financial has the best weather for
inclusiveness, and create tools Businge about the recent grant that they obtained solar energy and we should
for self-reliance and exposure. from Trade and Development Bank (TDB) formerly utilize it.
In Nakivale alone, 80% of known as the PTA Bank to go about solar energy
refugees own a phone; of needs in Nakivale Refugee Settlement. Being a manager, what
those 26% own a smart phone. kind of management
philosophy do you
What emerging issues would embrace to move things at
you share with us regarding electricity grid hasn’t reached and do any other income Powah Limited?
solar energy business in some communities. Solar in the generating activity. We also As a leader, I inspire my
Uganda? long run is actually cheaper focus on solar installations in team and try to be kind of a
Unlike solar energy, oil and than the grid. The reason why offices, homes and farms. We visionary. I try to show people
gas and hydro-power have some people haven’t adopted have come across customers our vision mainly looking at
huge voices in terms of policies it is because the upfront cost who use solar as a backup where the company will go. I
and have a lot of government is high; however there are in the event that power from bring in a team that balances
support. Because there are companies that are trying to national grid is off. There are with my management skills.
small solar companies, there come up with friendly ways different solutions for different
has not been a push for or of payment to make it easy for people. We also do product And lastly, what two major
lobby for serious policies for people to access solar systems. distribution like affordable things do you envision for
solar. We hope with more lights, lanterns and others Powah Limited in the coming
solar companies coming into How does Powah Limited’s especially to those who cannot few years?
Uganda there will be space for work feed into the solar afford the high cost of solar I want to see Powah Limited
policy formulation and making energy sub-sector in Uganda? installations. being one of the leaders in
solar business more attractive. Powah Uganda Limited is a the energy solutions in the
Some people think solar solar solutions company. We What other partnerships are country. In Uganda, 20% of
products are fake…that is not focus on solar for productive you eying that would directly the population has access to
the case – it is the people who use – we design our own or indirectly tackle energy the grid, so if we can increase
are not informed. We need to solar solutions just like the and related problems of the that, it will be great. We intend
do more education on solar Powah hub for Nakivale. The country? to expand to neighboring
products, technology space hub is essential because it can There are numerous countries like Rwanda in the
and price. People should go help people have access to partners we are trying to look next few years.
for solar because it is more of a their computers, charge their at. We are also looking at
necessity and also the national phones, use mobile money going into health technology,

Aug 03 - 09, 2018 31


business
telecom equities

Airtel opens new service centers Cipla IPO slated


important to enhance the for August 13

D
customer experience by
ensuring our physical rug maker CIPLA-QCI
presence in as many areas will soon announce
as possible.” its IPO on the Uganda
Kyeyune said the 18 Securities during the
premium shops will first half of August with trading
further strengthen their in its stock expected to follow
footprint in the country a month later, according to the
by supplementing on the media reports.
already existing kiosks, It is believes that the company
mini shops, distributor that is currently on a roadshow
locations and super to promote its stock in Europe
agencies. will make the announcement on
Previously, Airtel Uganda August 13.
has opened premium shops The roadshow follows closed
in Kampala, Entebbe, Gulu, talks with Ugandan institutional
Airtel officials attending to customers at the Ndeeba premium shop.
Lira, Kabale, Soroti, Jinja, investors that were meant to

F
FortPortal, Mbale, Mbarara help determine the share price.
ollowing successful subscribers via premium and Arua Districts. Sources familiar with the
network expansion shops. The shops act as a plans say, the price is the only
and countrywide This announcement was one-stop center for the missing number in the prospec-
broadband made at a press conference company’s service solutions tus that will soon be submitted
availability campaigns, at the new premium shop such as SIM card purchases to the Capital Markets Authority
Airtel Uganda is expanding in Ndeeba-Kampala on July and registrations, Airtel for approval ahead of a public
its footprint across the 25. Dorothy Kyeyune, from Money, e-recharge and data announcement.
country to provide Airtel, said having invested connectivity. Experienced CIPLA’s move comes amidst
one-on-one customer heavily in infrastructure staff is in place to serve a determined push by the gov-
care experiences to its “we now feel that it is customers. ernment to get more firms to list
on the USE. Currently, USE has
only eight local firms.
csr
csr
MTN Foundation boosts NBL lights Mulago children unit
Arua’s Oriajin hospital

M
250 beneficiaries, are 250 Nutri-
TN Uganda tion in 1984. tion Kits, 100 mosquito nets, one
Foundation on “We are happy to see that solar panel unit, in total worth
July 26 donated Oriajin Hospital is playing a Shs 60million.
hospital equip- huge role in the delivery of “The kits we have provided
ment to Oriajin Hospital health and medical services to these mothers and children
based in Arua as part of its to thousands of people in the contain a rich variety of food
Access to Health Care initia- West Nile region,” she said. nutrients such as soya, silver fish,
tive project. The Arua District Medi- groundnuts, rice, posho, potatoes,
The donation will benefit cines and Supplies Inventory beans and sugar as well as soap
hundreds of patients from the Manager, Margaret Bayoru, and are to cater for their basic
West Nile region and neigh- said MTN’s donation was NBL's Onapito Ekomoloit (C) hands nutritional and wellbeing needs,”
bouring DRC who frequent timely and the first in the over a solar panel unit to Mulago Onapito Ekomoloit, the NBL’s
one of Northern Uganda’s region. Hospital adminstrators on July 25. Legal and Corporate Affairs

O
busiest public hospitals. “…we have been grappling Director, said.
During the handover cere- with poor facilities to host our n July 25, Beer maker, Reports from Mulago shows
mony, the 20 hospital beds, 20 patients and doctors’ accom- Nile Breweries limited that malnutrition is a major pub-
hospital mattresses, 20 hospi- modation for a long while through its Nutri-Kit lic health concern in Uganda yet
tal blankets and 20 mosquito now. The level of morale has project, handed over a proper nutrition is essential to
nets were received by officials been noticeably low in the solar panel unit alongside other ensure the growth, health and
from Orijuan Hospital. past, but this is starting to items to the Mwanamugimu Nu- development of children to their
MTN Uganda’s Senior look up now,” she said. trition Unit. full potential.
Manager Corporate Affairs, The MTN Foundation The annual malnutrition cam- David Nuwamanya, the prin-
Justina Ntabgoba, said she Access to Health Initiative is paign, which was unveiled last ciple administrator at the referral
was delighted with the work a Shs 500m support program year is geared towards promot- hospital thanked NBL for their
done by Oriajin Hospital in aimed at improving the quali- ing nutrition especially towards contribution saying it will con-
provision of quality health ty of health care countrywide. women and children. tribute greatly to the facilities
care in Arua since its incep- Handed over to Mwa- vision to be the leading centre for
namugimu which currently has health care services.

32 Aug 03 - 09, 2018


business

BATU half- year profit


rises to Shs6.2bn
By Isaac Khisa The Uganda

H
Securities Exchange
igh operating listed firm recorded a
profits relatively flat revenue
coupled of Shs 73.7bn and
with lower the value added tax
financing costs helped standing at Shs 40.4bn.
the tobacco maker, Nicholas Edimu, the
British American company secretary on
Tobacco, to record a behalf of the Board of
77% rise in net profit Directors said they are
to Shs6.2bn for the half still engaging with the
year ending June 30. government on how to
Brian Agaba, (L) Driver Taxify Uganda and Julian Byamugisha – Operations The latest financial improve the tobacco
Manager Taxify Uganda unveil Taxify Go, an economy category that uses results shows that the business environment.
smaller 4-seater cars to allow customers pay a base fare of UGX 800shs which company recorded “Our engagement
is 400 UGX per km, 70 UGX per minute and a minimum fare of UGX 3000 on an increase in the with the relevant
July 27.   INDEPENDENT/JIMMY SIYA operating profit from government agencies
Shs 5.3bn in June last continue to advocate
year to Shs 8.8bn this for a more stable
year due to lower taxation regime,
costs attributable to reduction in the illicit
the absence of one-off trade incidence and
incurred in the first regulation that are
half of 2017 to support sound, evidence based
compliance with the and that have gone
Tobacco Control Act, through a formal
2015. consultative process,
On the other hand, “he said
financing costs dropped The firm has declared
from Shs 291million to an interim dividend
Shs 103million during of Shs 126 per share,
the same period under up from Shs 71 in the
review. previous year.
Agnes Mubiru, (L) Manager E-Channels and Marketing with Vincent Omoth, (M)
Marketing Manager Fresh Dairy handover cartons of Fresh Dairy yoghurt to the
kids area instructor for kids as part of Fresh Dairy’s sponsorship contribution
towards the 7th CBA Classic and Vintage Auto show on July 28.   INDEPENDENT/
JIMMY SIYA

Weekly share price movement (July 31)


Security July 31 July 17 Movement
BATU 30,000 30000 00
BOBU 140 145 3.4
CENT 1,218 1,277 4.6
DFCU 950 970 2.1
EABL 8,307 7, 574 9.7
EBL 1,846 1,792 3.0
JHL 18,460 19,451 5.1
KA 374 402 6.9
KCB 1,753 1,755 0.1
NIC 17 17 00
NMG 3,304 3,456 4.4
NVL 450 450 00
SBU 32 32 00
UCHM 64 45 42
MTN and Oriajin Hospital staff pose for a group photo in one of the Wards that UCL 23 23 00
benefitted from MTN Foundations’ donation under its Access to Health Initiative.
UMEME 330 350 5.7
ALSI -- -- --

Aug 03 - 09, 2018 33


comment
By Ssabalwanyi (President Museveni)
Judges without substance
The Judges should have taken into consideration the recent
L.C 1 and Women Councils elections which NRM won

Country men and women, theatre of democracy of form without This year’s budget has focused on
addressing substance. these very issues.
 I draw your attention to my two The Judges should have taken into Those who use sectarianism
recent short speeches: one in consideration the recent L.C 1 and of religion and tribe or gender
Parliament on July 25 when HE Women Councils and Committees chauvinism are bankrupt ideologically
Narendra Modi, the Prime minister elections which gave massive victory and dangerous for the future of Africa.
of India addressed Parliament to the NRM, soon after the age limit They were the problem of Uganda
of Uganda and the second one and the seven years’ debate. This was in the past and they have no value
on july 27 when I addressed the more or less a referendum. There was economically and, therefore, socially
10th BRICS (Brazil, Russia, India, open participation by the millions. (socio-economic transformation).
China and South Africa) Summit in We shall harmonise and galvanise I went to the schools in the 1950s
Johannesburg, South Africa. All of our position. The undemocratic age and 1960s because my father was
them illuminate different angles of limit nonsense was clear. “Nibagaya able to pay the school fees of that
NRM’s four principles: Patriotism Engabo oti mwihemu abagurusi?” time by selling some of his cattle
(anti-sectarianism), Pan-Africanism (How can you say old soldiers should in the monthly auction markets of
(working for African Unity be disqualified when everybody’s Ntungamo. Who were buying the
economically and politically), cattle? It was three businessmen
social-economic transformation and none of them a Munyankore.
(modernising the African society), These were: Walusimbi-Mpanga from
and Democracy (the democracy of Our judges in Kampala, Bukyenya (Bukenya) from
substance, not mere form). We are Mbarara and Shear, a Muzungu,
making good friends all over the Uganda spend operating out of Ishaka who was
world that will help us to achieve
our goals, starting with unity of
more time on taking cattle to Kilembe to feed the
miners there. Who, then, were the
our African brothers and sisters in form and not supporters of my education apart from
the form of the EAC and CFTA in
order to unite our markets.
substance, my father? They were certainly not the
Banyankore or Church of Uganda; my
 Unfortunately, our judges in on procedure religious denomination.
Uganda spend more time on form
and not substance, on procedure and not Sectarianism is pseudo-ideology. If
we get evidence about the promoters
and not substance. My freedom substance of sectarianism, we shall act against
fighter’s sense of justice in this them politically and criminally. I also
matter (the age limit ruling) got alleged reports of importing voters
focuses more on the convenience in Bugiri as happened in Kyadondo
of seven years rather than five and Jinja East. The case of Jinja East
year terms. With the current five is in the courts on the same issue of
year term, a lot of time is spent efforts are needed because the good importing voters from other areas.
on electioneering and less time on soldiers are not enough?) Back to the question of sectarianism,
development. The first two years   I congratulate the NRM on we should never allow identity to
settling in, the third year some winning the four seats for MPs eclipse or subvert interest. Down with
work in the constituency and, then, and the five seats for mayors of the opportunists (Nalilawa, abanyaanda)
by the fourth year, electioneering seven new municipalities. The new - those who do not have positive
again. municipalities were: Apac, Nebbi, (beneficial) principles that cause our
In the end, however, the judges are Ibanda, Sheema, Bugiri, Njeru and countries to grow.
not the ones in charge of the country. Kotido. It is a shame to hear of the
If the NRM MPs follow my guidelines sectarian manipulation by some
and bond closely with the people elements of opposition in Bugiri- President Yoweri Museveni gave this
through wealth and job creation, we using religion (Islamism) and written statement on July 30 on the
can; together with the people, make tribalism (Busogaism Vs Badaama). Constitutional Court ruling of July 26 in
the necessary Constitutional reforms, Such nonsense grows when there Mbale on the so-called Age-Limit case and
judges or no judges. are weaknesses in the local area new municipalities’ elections.
The Constitution should facilitate of handling the social- economic
the modernisation of Uganda and the issues, service delivery, and lack
economic and political integration of of sensitisation. The NRM leaders
Africa for the survival of the people need to deal with social- economic
of Africa as free people, not just the issues, and the rest will be easy.

34 Aug 03 - 09, 2018


comment
By Morris Komakech
Behind the Mbale constitutional ruling
The decision shows that in Uganda now, one can buy
parliament and get the judiciary for free as bonus

T
imes for seasonal sales are known
for cost cutting and savings. Some
stores urge consumers to “buy one
and get one for free.” This sales
principle seems to be the modus operandi
between the three arms of government -
The Executive (Museveni), Legislative (Par-
liament) and Judiciary.
There is a trade of conscience going on
between the three arms of government with
the masses standing by to watch helplessly.
The just concluded Constitutional Court
proceeding in Mbale is one case which
demonstrates that Ugandans are far from
getting either justice or good governance.
The ruling on the removal of age limit for
President (allowed), and arbitrary exten-
sion of Parliamentary term from five to
seven years (quashed) is a demonstration
that even the Judiciary is on sale. In law,
Machiavellianism is an exception, not the
rule. The general consensus is that the entire
process of Constitution amendment, the dictatorship. In short, both the legislature
subject of the Mbale contention was flawed. and judiciary have become the instrument
The outcome of a flawed process cannot
partially be valid. Period! The legislature for legitimising the impunity of a dictator-
ship.
The turn of events occasioned by this and Judiciary The legislature and Judiciary now feed
Mbale edict may call for a radical transfor-
mation of our society to reset our society to now feed the the monster which often plays them in the
manner a jilted lover plays his guitar. It is
a proper legal order. The way our society monster which here that we see the MPs taking cheap bait
is organised or disorganised does not serve to rubber stamp a lifelong tyranny over
the interests of Ugandans. In fact, the order often plays them Uganda, and the Judiciary, without fear
of business in Uganda militates towards a
shared vision for this country. Both the Leg-
in the manner a of contradiction, legitimizing a fraud for
free. Museveni feels no remorse because
islature and Judiciary are in the belly of the jilted lover plays he paid beforehand for his purchase - life
same beast, and are incapable of performing
their traditional roles for their pay grade.
his guitar Presidency.
And, the folly goes to the grassroots. If
Many commentators have questioned you won the grassroots election and lost
whether former regime ministers, ideo- the mind and heart of the people who once
logues, and cadres can exhibit impartiality cherished you; where else do you go? We
before the law which threatens the status now see that the army, parliament, judi-
quo. In the past, I likened such expectations depend on externalities because we exist ciary, investors, and local governments all
to whether monkeys could willingly agree because we have values. It is our values as tucked under the spell of the tyranny. That
with each other to cut down their forest. It humans that make us act rationally, with is how the man hoards power. But power
may never happen. respect to reason and purpose in acting. is not a currency for immortality. To the
Without going into the merits of the case In the circumstance under which Ugan- contrary, excessive power can mediate mor-
or its controversial ruling, the wise words dans subsist now, no one will openly con- tality when we start buying one with the
of Immanuel Kant, the 18th century German cede that they all live, and are governed by hope of getting two for free.
philosopher who argued that reason is the fear of obliteration by the system of dictator-
source of morality, should suffice. Kant ship presided over by, and for the person of Morris Komakech is a Uganda social critic
observed that rational humans should be Mr. Museveni. As such, we stand a terrible living and studying in Canada. Can contact via
treated as an end to themselves and not as a risk to expect either parliament or the judi- mordust_26@yahoo.ca
means to anything else. Kant explains that ciary to act rationally or virtuously so as to
if a person is an end, his existence does not counter the surging boundlessness of the

Aug 03 - 09, 2018 35


comment
By Kaushik Basu
A currency crash course for politicians
Why exchange-rate management is one of the
most complex areas of economic policymaking

O
ne major impetus behind U.S. a study examining different exchange- it certainly allowed domestically based
President Donald Trump’s pro- rate policies across a wide range of coun- firms to export more, but only because
tectionist policies is his belief that tries. We found that almost all countries they were selling at below-cost prices,
China has artificially weakened occasionally buy and sell on foreign- thus incurring losses. This approach
its currency in order to dump goods in the exchange markets in order to increase or makes sense if one is selling habit-
United States. Trump harped on this issue boost the value of their own currency. forming goods, because you can raise
often during his presidential campaign. In most cases, this is not done directly, prices and make up for earlier losses
But now that he is taking action to reduce but rather by commercial banks acting at once the customer has become depen-
America’s bilateral trade deficit with China, central banks’ behest. dent on the product. Hence, if you were
there could be grave consequences for the China, for its part, has pursued an starting a newspaper in the print era, it
world economy. interesting exchange-rate policy over was generally wise to underprice it until
Trump is making a mistake. And the decades. Through the 1980s and you had built up a large base of loyal
yet his views about China’s currency 1990s, there is no doubt that China kept readers.
should not come as a surprise, given that its currency artificially undervalued so Like certain products, buying from a
exchange-rate management is one of the that it could sell more goods interna- country can also be habit-forming. Once
most complex areas of economic policy- tionally. From the mid-1990s to 2005, you have mastered all of the rules and
making. the renminbi was virtually pegged to regulations, as well as the culture and
I learned this the hard way while the U.S. dollar in nominal terms, and politics, of a trading partner, you have an
serving as an adviser to the Indian the dollar did experience real apprecia- interest in continuing to do business with
government from 2009 to 2012. After tion. The logic was simple: by buying that country.
Standard & Poor’s downgraded U.S. dollars, China could cause the relative With the U.S. and many other nations
long-term sovereign credit from AAA to value of the dollar to rise, which meant now hooked on buying from China,
AA+ on August 5, 2011, I was surprised that the value of the renminbi would fall. Chinese policymakers no longer need
to see the dollar begin to strengthen. It Accordingly, the People’s Bank of China to maintain an undervalued currency.
took me a while to understand what was accumulated enormous dollar reserves And, indeed, China has been spending
happening. during this time. down its foreign-exchange reserves since
Investors were worried that the down- As it happens, Switzerland pursued a mid-2014. Though the renminbi was
grade could cause global turbulence similar – albeit shorter-lived – strategy once kept artificially weak, there are now
and began to pull their money out of after the 2008 global financial crisis, many economists who believe that it is
emerging markets. In earlier times, inves- and particularly after September 2011. actually overvalued. That, after all, is
tors would then have parked some of During that time, the Swiss National what one would expect for the seller of
their money in strong European econo- Bank managed to hold down the Swiss an addictive good.
mies. But, because most of those coun- franc’s value while accumulating a huge In this context, Trump’s tariff war
tries had handed over monetary policy to volume of foreign-exchange reserves. comes far too late, and will prove utterly
the European Central Bank and could no Is this a good strategy? In China’s case, self-defeating. But let’s assume that
longer print their own money there was Trump is right – that China is still selling
a heightened risk of default. its products to U.S. consumers at a loss.
By contrast, the U.S. had its own cur- In that case, my advice to him is simple.
rency and central bank, allowing it to Investors were He should send a thank-you note to Chi-
worried that the
make good on its debt under almost any nese President Xi Jinping.
circumstances. And investors were also
reassured by the fact that the world’s downgrade could
second most powerful economy, China, Kaushik Basu, former Chief Economist of
had a vested interest in a relatively cause global the World Bank and former Chief Economic
strong, stable dollar, owing to the fact
that a large portion of its massive stock
turbulence and Adviser to the Government of India, is
Professor of Economics at Cornell University
of foreign-exchange reserves was held began to pull and Nonresident Senior Fellow at the
in dollars. Hence, the paradox: though
the source of the problem was the
their money out Brookings Institution.

U.S., money went rushing to the U.S., of emerging


strengthening the dollar.
I have had a keen interest in exchange- markets Copyright: Project Syndicate, 2018.

rate management ever since that episode.


In May 2013, when I was Chief Econo-
mist at the World Bank, my colleague
Aristomene Varoudakis and I published

36 Aug 03 - 09, 2018


Face-to-face with medicine
smugglers of the DR Congo
Uncovering the underworld of how Uganda’s
marked medicines are stolen and sold
By Flavia Nassaka

W
e have been waiting for close
to two hours when a man
emerges from a nearby thicket
with water from the afternoon
drizzle dripping like white beads off his
very dark face and compact body. He sig-
nals his colleague to join him at the other
side of the road from where we are standing
and they speak for about 20 minutes.
It’s July 25, and I am in Opia, a deserted
village in Vurra Sub County at the Uganda
– Democratic Republic of Congo border in
Arua district. My mission is to find out how
medicines and sundries from Uganda gov-
ernment stores end up in the DR Congo.
Finally, an agreement appears to have
been reached between the two men. The
man from DR Congo has agreed to talk to
me but with some conditions; including no
use of names or cameras. He asks to con-
firm that I am a journalist and I give him my Dr. Ojera displays stolen drugs to journalists in April
identity card.
come to his health facility and find he ties deeper in the DR Congo that buy them.
Finally, he suggests that we find a more
doesn’t have drugs, they will run away to Every month, he says, he buys fresh sup-
comfortable place, out of the drizzle, for the
other clinics. “That’s why I decided to get plies of medicines of up to Shs800, 000 from
interview. But as we ride on his number
an agent from Arua hospital,” he explains in Uganda. He wants more medicines.
plate less yellow bike on the Ugandan side
the difficult Congolese English. “You know Uganda drugs are cheap,”
of the border, the man from DR Congo
When we arrive at our destination, he he says, “They also tell us the expiry dates
is already telling me stories about how
opens a box which is covered in several when selling to us.” He says the Congolese
Ugandan drugs have become a savior in the
jackets in a sack. He has just purchased a trust Ugandan medicines and medical facili-
neighboring country – and a money maker
box full of, largely, the antimalarial drug ties. “My friends also ask me whether the
for him. The man confirms that he is Con-
Coartem, antibiotics, straps of Paracetamol, person bringing the drugs is a doctor,” he
golese and works for a health facility called
and gloves. All are labeled ‘Government of says.
Yofenyiri Health Center, just across the
Uganda, Not for Sale’.
border in DR Congo. He says drug short-
ages have worsened since the government
“These cost me 400,000 shillings,” he says. Threats to Uganda
The man from DR Congo says 80% of As he constantly combs West Nile
there contracted the supply to hospitals
cases at his Yofenyiri facility suffer from health facilities for these drugs, he appears
and health facilities in the Ituri province to
malaria and the medicines he has bought oblivious that their rightful beneficiaries in
an NGO of the Catholic Church – Malteser
so far are not enough to meet the demand. Uganda are going without their doses. He
International, from the island nation of Mal-
Yet, he says, his colleague from Ikara health might be a very small player in a very big
ta located in the Mediterranean Sea between
facility also in Ituri province of DR Congo racket, but does he even know that his busi-
North Africa and Italy.
had called him two days ago requesting for ness presents a serious threat to the already
Ituri province is huge; about the size of
anti-malarial medicines. fragile Ugandan health system?
northern Uganda and riven with warlords
“I will not be able to supply them,” he This financial year, the government of
and bandits – making it difficult for Malte-
says. His facility, he says, is located just Uganda plans to spend Shs277 billion on
ser to deliver medicines.
eight kilometers away from the border and drugs. It is not clear how much of that the
“You make an order today they will bring
he has used this proximity to his advantage. country will lose to theft as there is cur-
the drugs after two months, three months,”
He is now the link person between Ugan- rently no published data to show the exact
says my man, who adds that when patients
dan medicine dealers and the health facili- extent of the drug theft problem. However,

Aug 03 - 09, 2018 37


health
anecdotal evidence indicates a lot of drugs recorded to ensure accountability. State House, the Director Dr. Jackson Ojera
are getting stolen. In addition to this, a medical worker is says their investigations have revealed that
At the Ministry of Health headquarters in supposed to sign a drug requisition form drugs are mostly stolen at hospital level. He
Kampala, for instance, Dr Jimmy Opigo; the which is authorised by the facility in charge gives an example of Kapchorwa where the
Manager of the Malaria Control programme before being given medicines. DHO was conniving with in-charges and
says last year, 21 million doses of antima- Odur says they follow this religiously. they would hide drugs in mattresses and
larials were procured and only 14.5 million But he also admits they have had recording drive them out without raising any suspi-
doses were reported as used. gaps he calls minor that they keep improv- cions until they got a tip off about this theft.
“We don’t know where the six million ing when they spot them. In its latest investigation, the HMU has
treatments went,” he says, “There was a big He appears unaware that the criminals recovered stolen drugs and sundries esti-
stock out.” could also be taking out drugs in very small mated at Shs25 million. The items were
The Ministry of Health has since 2017 quantities to to be noticed. A package seen found in a house in Nsooba; a village locat-
been subsidising anti-malaria drugs sold in by The Independent had medicines that ed just a few meters away from Mulago
some private pharmacies. The medicines were not packaged in the usual dispens- National Referral hospital in Kampala. They
which bear a green leaf are recommended ing boxes or tins. The various medicines included antimalarials Chloroquine and
to be sold at US$1 or less per dose. Up to appeared to have been poured randomly in Coartem, gloves, cannulas, antibiotics, and
US$4 million provided by the Global Fund one big package. gauze. It was not clear, whether the suspects
is to be spent on the subsidy each year until found with the drugs were government
2019. Another US$3.2million is to be spent Arua not alone workers or where they were going to sell
on monitoring supply and providing infor- And Arua is not the only Ugandan bor- the drugs.
mation on malaria patient care. der town with the DR Congo via which What is clear though according to observ-
If Dr Opigo’s numbers are correct, the stolen medicines and sundries are smug- ers is that at the root of this trade are poor
missing six million treatments represent gled out. Kasese district in South Western management and security lapses in the
an addition US$6 million (Approx. Shs22 Uganda is another one. country and the healthcare system that hos-
billion). That is money going to medicine Here, the Resident District Commissioner pital staff and medicine smugglers exploit.
smugglers like my man from the DR Congo. (RDC), Lt. Col James Mwesigye, told The Speaking to The Independent on July27,
After our meeting, I headed to Arua Independent that he has battled medicine Moses Kamabare; the General Manager of
Regional Referral Hospital, where he claims thieves at the Congo - Mpondwe border in National Medical Stores, said medicine theft
to be getting some of his drugs. But its Prin- the district. can be countered with simple practices. He
cipal Administrator, Michael Odur, says the says to counter any leakages at the time
hospital is not connected to the DR Congo when drugs are transported to health facili-
medicine racket. ties, NMS has developed a tracking system
“I’ve been here since November (last in their trucks that monitor movement of
year). None of our hospital staff has been the vehicle and the system will be notified
arrested,” he says, “We only hear that Ugan- incase anything happens along the way.
da drugs are on sale in Congo but we have “If you take a wrong route the vehicle
not had a case here.” will be disabled. Once an order is made,
Odur says Arua hospital, like many oth- the in charge at the facility will be notified
ers around the country usually gets stock Dianah Atwine Dianah Atwine about when the deliveries will be made.
outs of the malaria drug, Artesunate and They are also informed when the truck
others like Fragyl and antibiotics Amoxyl leaves NMS,” he says. These constant
and Ceftriaxone injection in addition to He said he has encountered techniques notices, he says, give no chance to the crimi-
gloves and stitchers. where hospital workers would move out nals to interfere with the stocks because the
But, he says, the constant stock outs are with a small package each day, meet at in charges are expected to sign the delivery
not because drugs are stolen. some point, and put the different medicines notes confirming receipt.
“We get a high number of unbudgeted together in one package for sale. Ojera also recommends more regular
for patients from neighboring Congo and of “We increased surveillance and held audits at facilities. He says currently audits
late refugees from South Sudan,” he says. operations every day,” Mwesigye said, are mainly done when there is suspicion
Every day, he says, the hospital handles “One day we unpacked a truck full of fish of theft. Also, to solve the problem of drug
around 400 out patients and 350 in patients only to find medicines below them.” theft and stock-outs, the Ministry of Health
and 33% of these are Congolese seeking He says, in his view, solving the problem has been piloting a programme dubbed
mostly care for HIV, Malaria, pneumonia or requires strict checking at border points ‘Results based Financing’ in West Nile and
maternal and child health services. Because since not much can be done at the hospital parts of western Uganda.
of the patient pressure, Arua hospital was level. During a post budget meeting at the Min-
this year given an extra Shs240million on Dr. Patrick Anguzu, the Arua District istry of Health in June, Dr. Sarah Byakika,
top of its annual Shs1billion budget. Health Officer agrees. He says hospitals are the commissioner planning at the Ministry
Odur says the Uganda-Congo border is constantly working to tighten security mea- of Health said, under the programme,
porous and given that the hospital is just sures against drug theft; including surveil- whatever medicine is dispensed is properly
7kms away makes it very easy for them to lance, regular pill counts and room restric- accounted for as health facilities are obliged
be targets by criminals. But he says he can- tions. But he says these are never enough to to carryout quarterly assessments of the
not tell how, if at all, drugs could be stolen stop drug thefts. outputs.
from the hospital. “It can be hard to anticipate the strategies For Odur in Arua, however, this is a prob-
He speaks of a system innovated by the that criminals use,” he says. lem without quick fixes. “The Congolese
Ministry of Health to control any leakages He says the stolen drugs from Uganda will be coming here anyway,” he says citing
at the hospital. It is called the ‘Daily Dis- are now being sold in the DR Congo the many panya routes from DR Congo into
pensing Log’ where all patients that come to because all efforts required to make it Uganda where there are no checks at all.
the facility in a day are registered and given impossible for these drugs to be sold in All one needs is a numberless Boda Boda
patient numbers. The same log has provi- Uganda have been done. like the one of my man in Opia village.
sions where drugs and their quantities are At the Health Monitoring Unit (HMU) of

38 Aug 03 - 09, 2018


ART | BOOKS | SOCIETY | TRAVEL | CULTURE

Nkole’s 5 minutes of history


And its monument gaining international significance

A
By Dominic Muwanguzi to folklore, Bunyoro had raided Buganda within the hair and wearing bracelets
with intent to bring back Buganda to Kitara. around their waists.
bout 600 years ago, in In the centre of the monument, on top, is The traditional wall patterns on the
1520AD, three powerful an orange round figurine, symbolising the Nkole households- huts- suggested the resi-
kingdoms thrived in pres- sun that is synonymous with the eclipse. dents’ lifestyle in the aspects of medicine,
ent day central and western On the upper exterior of the monument are astronomy, entertainment and spiritualism.
Uganda. Located in triangu- Ankole wall patterns that give it cultural The huts decorated with such imagery,
lar formation with Buganda, quality. The theme of cultural identity and were often used for official celebrations like
which occupied a long a narrow swath significance is very much on display in the giving away a girl into marriage and, there-
along the shores of Lake Victoria facing neighbouring Igongo Cultural Museum fore, signified an element of purity and holi-
Bunyoro-Kitara to the northwest and Nkole which features cultural norms and practices ness. They are true testimony to the overall
to the southwest. of the Ankole people in figurative and real- early civilization of this region.
Bunyoro was the biggest but its mar- istic forms. For example, the museum pre- The Ankole people were well organised
tial King; Olimi 1 Rukidi Rwitamahanga serves many utilitarian objects used by the in four clans; Abahinda, Abashambo, Aba-
wanted more. So he raided tiny Nkole and two Nkole tribes; the Bahingi (crop- farm- gahe and Abaishikatwa, a symbol of cul-
easily overrun it; pillaging its cattle and ers) and Abarisa aka “Omutungi w’e nte” tural dynamism and commonality visible
women, and causing a great famine called (cattle-keepers) in their households. The African monarchs that decentralised politi-
“ijunga nyonga” within the Kingdom. dissimilarity of objects they used in their cal powers through chiefs. Like Buganda,
Nkole continued to fight back and during day to day life is striking. For example, in the kings of Nkole distributed their political
one of the battles in broad daylight, some- the Bahingi household the women grinded powers through a prime minister and chiefs
thing unheard of and never seen before millet as the daily menu and there was a who also wielded authority. The hairstyles,
happened. Darkness fell on the battlefield at fire-place to prepare it. On the other-hand, thrones (chief’s official seats) and gourds
Biharwe hill. within the Abarisa home, the inhabitants evoked such supremacy in their day to day
The Bunyoro soldiers, fearing that it was fed only on milk and roasted meat, hence life. The Biharwe Eclipse monument and
an apparition of Ankore spirits intervening the dominant presence of the milk gourd installation might have been constructed
on the side of the Nkole fighters, fled from used to carry and preserve the milk. The as a cultural museum, to bring to life the
battle and out of the kingdom. The Nkore women from this household cultural history of Nkole that mirrors their
kingdom soldiers celebrated the unusual were also very ornamen- cherished traditional norms and beliefs and
victory and the battle became etched in the tal in their physical attract tourists to view their cultural iden-
kingdom folklore. Today, of course, we presentation, evi- tity and values. But in this post- modern
know that was the total eclipse of 1.30PM denced by their era of globalisation, Biharwe
on April 17, 1520 that lasted 5 minutes and hairstyles that monument is acknowledged
15 seconds. But that has not stopped the involved shav- internationally. The auspi-
Nkole people from celebrating Biharwe hill ing concen- cious date is, for example,
as a “sacred and historic site” at the Biharwe tric designs used to calculate periods in
Eclipse monument shows. Constructed to which the different Kings
commemorate the incident, it stands atop of the Great Lakes region
Biharwe hill approximately 6kms from reigned. The monu-
Mbarara town on the Mbarara- Masaka ment was constructed
highway. by Joseph Ssematimba,
To reflect the present day unity between a Makerere University
the once-warring kingdoms, the monument senior Lecturer in the
is built in lineal form, with three pillars Department of Indus-
symbolising the three kings of the period; trial and Fine Arts.
Olimi of Bunyoro, Ntare1 Nyabugarobwera
of Nkole, Nakibinge of Buganda. According

Aug 03 - 09, 2018 39


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You might not know his faces. The talent manager was is for making important
name, but he’s one of the also joined by Woody Har- calls, such as negotiating
world’s most well-connected relson, McConaughey’s model a pay rise. Afternoons are
men. And Madonna’s man- wife Camilla Alves and French most unproductive, 8pm
ager Guy Oseary, 45, showed photographer JR for the star- is the happiest point, and
off his influence recently in a studded getaway to Château La the best time to have sex is
remarkable Instagram snap Coste, in the country’s southern 10pm if you are in your 50s
from his summer vacation in region. Others were Madonna, and 10.20pm if you in your
France, surrounded by his A-list Helena Christensen, Dakota 40s, according to circadian
pals. Sacha Baron Cohen and Johnson, and Tobey Maguire’s rhythm expert Dr Paul
Bono were joined by Matthew ex-wife Jennifer Meyer, and Kelley. Avoid midnight – it
McConaughey, Chris Rock and Oseary’s wife, Brazilian model is a time of anger and 1am to
Isla Fisher among a staggering Michelle Alves. 4am is peak sleep time.
array of many more famous

Catholic Church suspends rapping priest


On a typical Sunday at the St. Monica mic. Popularly known as ‘Father Masaa,’ agreed. Speaking to CNN, Bishop Philip
Catholic Church in southwest Kenya, Father he said music was to attract a young people Anyolo, who heads the diocese in Migori
Ogalo would be draped in his usual church to his church, spread the message against County where Father Ogalo serves, said the
vestments for morning mass. Later in the drug abuse, and bridge the generation gap. antics had earned the priest a suspension.
day, he would change into shorts, a long But his unconventional preaching style “The use of rap music is not allowed in
t-shirt and tie a red bandana tied around has landed him in hot water with Catholic preaching,” he said.
his head, spitting hip-hop rhymes into his Church heads. However, his bosses dis-

Sadness in marriage is If you don’t have


no ground for divorce a Zebra, fake it!
A woman who has been trying to divorce A new zoo in Cairo’s International
her husband for three years was recently Garden municipal park has come under
denied the right to do that by the UK’s fire for trying to deceive visitors by paint-
highest court, which ruled that an unhappy ing a donkey black and white to make it
marriage that had broken down for years look like a zebra. The fake was spotted
was not grounds for divorce. 68-year-old on July 21 by Mahmoud A. Sarhani, a
Tini Owens had been hoping to finally end decision has been met with criticism from student who posted a photo of a strange-
her 40-year marriage to Hugh Owens, 80, divorce lawyers. Tini claims the father of looking zebra on his Facebook page after
but the five judges at the UK’s highest court her two children, Hugh Owens focuses only hot weather caused the paint to smudge.
unanimously upheld rulings by a family on his job rather than his home life, doesn’t Most people found it hilarious, but some
court and the court of appeal that the two show her love and affection, and is always were outraged. But the zoo’s manage-
must stay married at least until 2020. The moody and argumentative. ment denied the Zebra was a fake.

40 Aug 03 - 09, 2018


Buy this bullet-
proof car for MPs

S
ince President Yoweri The course is, of course, mind- where it goes for between US$75,000
Museveni ordered the blowing. But what got me really and 100,000).
Ministry of Finance to thinking is the image of a typical MP, Meanwhile, depending of security
provide army snipers and cruising along the Kampala-Mbarara plan; either behind or in front the
bullet-proof escort cars for Highway in their favourite vehicle, MPs second-hand jalopy would be
MPs, the Daily Monitor the Toyota Land Cruiser TX – which the bullet-proof Land Cruiser pick-up
newspaper has been running stories might be anything from the Third which costs Shs1.9 billion. Really, does
unpacking the implication of the Generation Prado of 2002-2008 or the that make sense?
directive. newer Fourth Generation Prado of A look at President Museveni’s own
One of the stories pointed out 2009 to present which are bigger in the security detail makes clear the sheer
that the government could end up five-door version and are in the TXL or senselessness of the deal. Of course,
spending as much as Shs866 billion to VXL grade. These luxury SUVs have a the President’s security is top secret.
protect the MPs. base price of US$85,000 (About Shs320 But at one point the President acquired
The newspaper said in interviews, million) minus taxes, insurance, and a Mercedes Benz Pullman, a limousine
some manufacturers had revealed that freight charges (which could double that combines top security functions
a 2017/18 model bullet-proof Land the cost and explains why most MPs and luxury. This huge vehicle looks
Cruiser pick-up could cost about buy from the local used market at ordinary but it can withstand bullets
$520,000 (Approx. Shs1.9 billion) while between Shs50 million and Shs100 and explosives and its interior can act
a 2017/18 model bullet-proof Hilux million). The local Toyota dealership as a bunker in case of attack. In this
pick-up costs about $166,000 (Shs630 in Namanve has the Land Cruiser 200 case, the President’s guards, with their
million). VX-R, most likely from South Africa open pick-ups, have far less protection.
That means there is an easier way
to protect MPs – simply buy them
armoured vehicles which look like
civilian vehicles. My pick for them
is the Range Rover series since some
MPs already drive some ordinary ones.
They can upgrade to the 5.0-litre V8
armored version which has a bullet
resistant exterior and is capable of
still operating on flat tyres, with
self-sealing gas tank, and side blast
grenade and high caliber
bullet protection.

Aug 03 - 09, 2018 41


Profile
Prof. Ssentamu on his time
as VC Makerere University
By Agnes E Nantaba continental ranking because research at the to pursue his doctorate degree, graduating

P
college of health sciences greatly improved. with the degree of Doctor of Philosophy
rof John Ddumba Ssentamu is one He also points at the improved road system (PhD), also in Economics
of Uganda’s long practicing econo- and the initiation of the construction of part Prof Ddumba was born and raised in
mists. He is best known, however, of the university perimeter wall. Masaka present day Lwengo district to
for serving as the Vice Chancellor Today, he still lectures at post graduate Edward Patrick Ssentamu and Teresa
(VC) of the country’s oldest university, level at the university and also is the chair- Ssentamu Nakalema both deceased. He
Makerere University Kampala from 2012- man of the governing council for Kisubi went to Villa Maria Primary School and
2017. He chose to bow out upon completion University. Kabojja and Savio Junior School in Kampala
of one term. He prides in being a teacher who has and Wakiso districts, and St Mary’s college
He says “I would have loved to continue shared and imparted knowledge with Kisubi for secondary school.
but, judging the situation ahead and the many lovers of economics both in Uganda
politics within the recruitment procedures; I and other countries.
chose to end it there”. It’s a journey that he embarked on in 1977
Ssentamu is an alumnus of the same after being retained as a special teaching
university founded in 1922 and he spent assistant at Makerere University. He had
most of his working life, more than 35 just graduated with a bachelor’s degree in
years, here. He rose from academic ranks economics at the same institution for which
to administrator and finally to VC. Prior to he emerged the second best student. The
his appointment as VC, Prof. Ssentamu was same year, he started teaching on part-time
the Principal of the College of Business and basis at Caltec Academy.
Management Science at the university. He says, “That is when I started enjoy-
Meanwhile, for the last 15 years, he has ing teaching and those are the years that
served as chairman of the board at Cente- made me famous in economics because
nary Bank, the second-largest indigenous I taught many students from different
commercial bank in the country with the schools; especially during holidays”.
majority shareholding of the Catholic About the same time, he furthered
Church. He has also been Caretaker VC education graduating with a Master of
for Ndejje University; an Anglican Church Arts in Economics at the University of
founded institution and is vice chair of the Waterloo in Ontario, Canada. He returned
council of Muteesa 1 Royal University; a to Maker- ere to fill-up the shortage of
Buganda Kingdom founded institution. His teaching staff at the time.
role is to steer the process of enabling the He married in 1983
university to acquire a charter. but unfortunately his
His tenure at Makerere University was wife passed on seven
characterised by having the highest number years later leaving him
of strikes but he says some were engineered with two young children.
by people within the system because of He then returned to
internal fights. Makerere
He cites an instance when he made a
decision to suspend some of the students
who led a strike but unfortunately some-
body within the system overturned the
decision.
He says this is why, at some point in
time, he appeared not to be moved by
student demands expressed through
strikes.
He prefers to dwell on his biggest
achievements at the great institution.
“I worked with the council to intro-
duce a system of external service pro-
viders for food so the strikes during
my reign were never about food,”
he says.
The other is that under him,
Makerere never went lower
that the 8th position on

42 Aug 03 - 09, 2018


Q&A
advertorial

Prof Ddumba’s Liteside


Any three things that we don’t spiritually right. I recall Being morally upright, Uganda is my country

I
know about you? one day when he invited honest and having integrity. so I have to live here
am proud of integrity; me to his office requesting Unfortunately such people although I would love a
everywhere I have a me to take on the position are few in Uganda. better Uganda, very well
trace, the team can ac- of board chairman of organized.
knowledge it. I am an Centenary Bank; I still On what occasion do you
open person who would admire his humility. lie? What do you regard as the
not mind breaking it face to I hardly tell lies. lowest depth of misery?
face when things go wrong. What is your greatest As an economist, living
I am also a straight forward extravagance? What do you most dislike below the poverty line is
person. I hate being shabby; about your appearance? too much suffering. It hurts
therefore, I spend some I am not bothered about that as an individual, I can’t
What is your idea of good money on good my appearance. do so much to get such
perfect happiness? dressing. people out of such abject
Seeing things going right. Which living person do poverty.
What is the greatest thing you most despise?
What is the trait you most you have ever done? Anyone who changes What is your favorite
deplore in yourself? In 1998, I was on goal-posts every time occupation?
Not being aggressive a council for Ndejje and those are quite many Being an economist
enough because people University and about the individuals. although the challenge is
talked too much during my same time, the then vice that our work is sometimes
tenure as VC of Makerere chancellor Prof Walusimbi What or who is the greatest not taken seriously because
University but I kept a deaf (RIP) had his contract love of your life? of politicking in everything.
ear. My predecessor was ending. My name was It has to be my children.
very aggressive and I only forwarded to take over What do you most value in
got to understand why he from him in acting capacity When and where were you your friends?
acted that way during my to which I agreed and my happiest? Sharing with them ideas
term of office. I wish I was first task was to organise The day I got married and issues let alone money.
also more aggressive. the first graduation. I did it in 1983. I was also happy
successfully regardless of graduating with a PhD that Who are your favorite
What is the trait you most working in a very hostile I pursued in very trying writers?
deplore in others? environment characterised times when my wife had Chinua Achebe wrote
Dishonesty. by opposition from some just passed on and being things that touch our lives
sects of the Anglican torn into raising our very as well as those that we
Which living person do leadership since I was a young children that she appreciate.
you most admire? catholic. However, I was left behind. I was also very
Cardinal Emmanuel very much appreciated happy being part of the Which historical figure do
Wamala is a straight at the end of the tenure team that took a decision you most identify with?
forward person, listens and up to today, I am to construct Mapeera Cardinal Emmanuel
and I believe that he is remembered for turning house and witnessing its Nsubuga was a straight
around the university. The construction as well as forward man, very
people of Ndejje University official opening. hardworking and made
still appreciate me. genuine statements without
If you could change one fear or favour.
What is your current state thing about yourself, what
of mind? would it be? What is your greatest
Many times, I am a happy I am too soft and some regret?
man. people take me for granted. My regrets come in at
So I wish I could be more Advanced level; may be if I
What do you consider the aggressive. hadn’t wasted so much time
most overrated virtue? in social activities I would
We waste too much time What do you consider your have become a medical
and money on luxurious greatest achievement? doctor.
functions. We are wasting Being a part of the
this country and yet we growth at Centenary Bank What is your motto?
could devote the resources and turning around Ndejje It’s about time.
elsewhere. University.

What does being powerful Where would you most


mean to you? like to live?

Aug 03 - 09, 2018 43


Global comment
By Mahmoud Mohieldin and Svetlana Klimenko
Unlocking private-sector funds
One way to close the funding gap and catalyse
substantial investment for Sustainable Development

F
or the last three years, dozens of trillion, and the US total was $8.7 trillion, their chosen ESG criteria.
countries have gathered each July though the highest growth rates were in By reviewing data on companies’ ESG
to present their national plans to Japan and Oceania. performance, investors can see how their
achieve the Sustainable Develop- Viewing ESG awareness as a way to miti- funds are contributing to achieving the
ment Goals (SDGs). At the latest of these gate risk and even as a source of upside SDGs. Based on this information, they may
United Nations High-Level Political Fo- opportunities, institutional investors are decide to reallocate their resources or to
rums, governments rolled out impressive seeking to bring this approach into their engage with better-performing companies.
blueprints – almost none of which included mainstream activities. This bodes well In 2016, Mozaffar Khan, George Sera-
realistic budgets or revenue sources. for the SDGs, but there are still important feim, and Aaron Yoon created portfolios
Estimates of the development investment challenges to overcome, beginning with of companies that were performing well
gap are typically in the trillions of dollars, an inadequate understanding of the link and poorly on the material issues in their
while official development assistance is between ESG standards and the SDGs. industry. The firms with the highest annu-
hovering around $140 billion per year. One Only a few investors and businesses alized active return (alpha) of 4.8% were
effective way to help close this funding gap are currently using SDGs as the basis for performing well on the material issues and
is to catalyse substantial investment from sustainability-focused strategies. But the poorly on the immaterial issues. Those with
the private sector. only way to boost shareholder value and the lowest alpha, -2.2%, were performing
The private sector has long played an contribute to meeting the SDGs is for com- poorly on both. Critically, however, the
integral role in poverty reduction and eco- panies and investors to ensure, in advance, divergences did not start to appear until
nomic development – a role that extends that they focus on ESG standards that are after 7-8 years.
well beyond finance. Private companies both material to their industry or business This demonstrates that executives must
create 90% of jobs (the most effective way to and useful to advance the SDGs. balance attention to short-term performance
lift people out of poverty) in the developing In a recent paper, Gianni Betti, Costanza with a long-term perspective. That includes
world and facilitate improved efficiency, Consolandi, and Robert G. Eccles map an understanding of which ESG issues will
technological adoption and innovation, and the relevant ESG issues identified by the be material to their industry in the future,
the distribution of goods and services. Sustainability Accounting Standards Board and which SDG efforts in those areas they
Private-sector financing of the SDGs (SASB) in 79 industries in ten sectors, may serve to advance.
would occur via established institutional grouped by SDGs. Companies that use this Investors could consider taking a long-
investors, including pension funds, sov- kind of mapping will understand to which term view with regard to the financial
ereign-wealth funds, and insurers, which SDGs they would be contributing – down performance of their ESG-based portfolios.
together represent trillions of dollars of to the target level – by performing well on They can expect periodic reports on ESG
“patient capital.” Yet, as it stands, institu- performance and its contribution to the
tional investors allocate only a small share relevant SDGs – just as they receive periodic
of assets to so-called impact investing, while reports on financial performance – in order
channeling huge sums toward a relatively to monitor progress and make adjustments
small number of public companies. if needed.
The key to achieving the SDGs is thus In many ways, private firms are already
to impel public companies – especially Investors could contributing to the SDGs, but they are
the large firms that receive the majority of
institutional investment – to account for consider taking doing so in an ad hoc manner that is not
adequately labeled or targeted. By creating
environmental, social, and governance a long-term view smart, comprehensive, and clearly defined
(ESG) criteria relevant to the SDGs in their strategies, private companies can not only
decision-making. This approach recognises with regard to get credit for their efforts; they can also help
the need to adopt a long-term perspective
when implementing the SDGs, even as we
the financial governments to establish realistic budgets
and clear financing plans for the SDGs.
respond to their urgency. performance of
The good news is that ESG-anchored
investing is already on the rise, with most of
their ESG-based Mahmoud Mohieldin is Senior Vice President
at the World Bank Group. Svetlana Klimenko
the major institutional investors integrating portfolios is Lead Financial Management Specialist at the
ESG factors into their investment strategies, World Bank Group.
at least to some extent. The 2016 Global Sus-
tainable Investment Review reported that Copyright: Project Syndicate, 2018.
$22.89 trillion worth of assets were “being
professionally managed under responsible
investment strategies” worldwide, up
25% from 2014. Europe accounted for $12

44 Aug 03 - 09, 2018


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