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News analysis Health Business

Nawangwe’s mess at How to end mental MTN Uganda New fisheries law to
Makerere University health stigma troubles stir sector growth

Issue No. 557 Feb. 01 - 07 2019 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

Uganda’s big
China debt
Minister of Finance Kasaija’s
secret letter to Museveni

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Feb. 01 - 07 2019 1
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Issue No. 557 Feb. 01 - 07 2019

News analysis Business Health Arts Motoring

Cover story
Uganda’s big China debt
Minister of Finance Kasaija’s secret letter to Museveni

4 The Week
30 Comments
Museveni to judges: Decide
which state you want to serve Economic costs of increasing
debt: Understanding the high
risk burden to the economy
9 The Last Word
posed by the current debt level
Michela Wrong’s war on Kagame:
How racial prejudice led The
Guardian to publish an article that is
32 Health
basically a hit job on Rwanda
How to end mental health
stigma: Leaders must consider
14 Analysis
four critical priorities
Nawangwe’s Makerere mess:
Does university need a CEO not a
vice chancellor?
35 Arts & Culture
27 Business
When art preserves
MTN Uganda troubles: Telecom told to unique history, cultural
fulfil the National Broadband Policy as a identity of cities
condition to have licence renewed

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
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2 Feb. 01 - 07 2019
Offline

President Yoweri
Museveni on Jan.27 met
a delegation from South
Africa-based Bigen Group
of Companies led by the
Managing Director for
Energy, Rhulani Matshidze,
to discuss investment
opportunities in Uganda’s “As a party we are aware that politics is
energy sector. Speaker
of Parliament Rebecca
not static. So the debate and discussion
Kadaga attended the on the amendment of our party
meeting.  Courtesy photo constitution has started. There are
suggestions that we lining up opposed
to secret ballot be introduced”,Ruling
National Resistance Movement party
Secretary General Kasule Lumumba.
French Ambassador
to Uganda, Stéphanie
Rivoal (L) and Finance
Minister Matia Kasaija
on Jan.25 at the
signing of two loan
agreements from the
French Development
Agency (AFD) totaling
270 million euros to “Something has gone wrong and
support access to
water and sanitation needs correction. The opposition is
in the Greater Kampala seeking a meeting with the speaker to
and in South Western reach a consensus”, said Betty Aol Ochan
Uganda.
after speaker Rebecca Kadaga rejected
The contingent
Rubaga North legislator Moses Kasibante’s
commander of the appointment as Deputy Chairperson of the
Uganda Peoples Committee on Statutory Authorities and State
Defence Forces, Enterprises (COSASE).
Brig. Gen. Michael
Kabango, visited
troops in Barawe
and Maryan Gubay
Forward Operating
Bases in Somalia
this week, to check
their operational
readiness.   Courtesy
photo
“I can’t be rushed. Implementation of the
recommendations requires both legal
and administrative action”Constitutional
Affairs Minister Kahinda Otafiire told
parliament when asked about the progress in
tabling electoral reforms

Police officers not to be The amount in shillings that

49 8 billion 63,000
deployed for refusal to fishermen in Buvuma islands want People vaccinated
attend the Trainers of from Uganda People’s Defense against the Ebola
Trainees course Forces as compensation for the virus in DR Congo.
bodily harm inflicted on them.

Feb. 01 - 07 2019 3
week

NRM party
releases 2021
road map
HAPPY 33rd NRM ANNIVERSARY The ruling National Resis-
tance Movement (NRM)
The Board, Management and Staff of Pride Microfinance Limited party on Jan.23 released the
(MDI) warmly congratulate H.E.Gen Yoweri Museveni, Cabinet party’s electoral roadmap
ahead of general elections
Ministers, Officers and Men of the UPDF and all Ugandans upon in 2021. This year, the party
celebrating 33 years of NRM Government. Secretary General Justine
Kasule Lumumba says they
will engage in activities to
mobile Ugandans who don’t
have national identity cards
to get them and get their
data on the national voters
register captured. They will
also push for the enactment
of enabling electoral laws
through their parliamentary
caucus and a National Con-
ference will held in Novem-
ber after they have updated
their party national register
and held district conferences.
In 2020, she says they will
conduct their primary elec-
tions in the month of May.
They will hold another
national conference in June
2020 for the election of the
Pride Mobile national structures and
Pay your bills presidential candidate before
the launch of the party mani-
at your festo by August 2020 and go
convenience into full blown campaigns
in preparation for general
elections.
In December, the Electoral
Commission released its
+256 702 096 300 roadmap setting to conduct
presidential, parliamentary
and local council elections
between January 11 and Feb
9, 2021 and is set to cost the
country Shs860billion.
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4 Feb. 01 - 07 2019
Week

Museveni to judges: Decide


which state you want to serve
At the 21st annual judges conference since become a modern independent state.
held at Kampala Serena Hotel, President “Many of the neo colonial states did not
Museveni told judges and magistrates that have a clear historical mission,” he said. “We
Uganda had evolved from various stages fought the colonial state and its army and
of state development and added that the created a new army. This created a new
judiciary should make its demands ranging pillar of the state.” He was reacting to the
from salary increment to more staffing Chief Justice Bart Katureebe who decried
in the context of how the Ugandan state
has evolved. As he opened the conference
the low levels of staffing in the judiciary
which also affecting its work. “Even the
CCEDU demands electoral
held from Jan 28-Feb 1, Museveni said judiciary must decide what kind of state reforms in letter to President
Uganda was initially a feudal state then a it wants to serve; a colonial state, neo-
colonial state, neo-colonial state and has colonial state or a new state? Civil Society Organisation – Citizens
Coalition for Electoral Democracy (CCEDU)
has written an open letter to president in
which they list what should be in place as
the 2021 General Election season sets in.
The letter that highlights three key chal-
lenges that have afflicted Uganda’s elections
in the recent past including monetization
of elections and corruption in electoral pro-
cesses, integrity of the national voters regis-
ter and violence during elections proposes to
the President remedies that require prompt
action to restore the integrity of elections in
Uganda.
“ as a fountain of honour, champion laws
and practices that guarantee a level playing
field for electoral contestations in Uganda,
support the establishment of a binding code
Controversy over Kasibante’s appointment to COSASE of conduct for political parties as well as
rebuilding public confidence in institutions
The speaker of parliament Rebecca Kada- Among who are currently investigating the that are charged with dispensing democ-
ga has confirmed Kawempe South legislator takeover of commercial banks by Bank of racy”, reads the letter in part.
Mubarak Munywagwa as the chairperson of Uganda to handover before concluding. He At the beginning of 2018, the consortium
the parliamentary Committee on Statutory said the leadership had under performed. of civil society organisation had written a
Authorities and State Enterprises (COSASE) Now, despite calls by the opposition similar letter asking the president to estab-
and rejected Moses Kasibante as his deputy. whip Ibrahim Semujju Nganda to let him lish an independent constitutional review
She instead posted the Rubaga north legisla- serve as the vice in the accountability process and launch a national dialogue
tor to the appointments committee. committee, the speaker approved him for process. By the end the year, the president
Kasibante who was last year appointed the appointments committee which she had only launched the dialogue which
deputy chairperson of COSASE by the chairs. was being driven by the National Elders
opposition Forum for Democratic Change However, no one has been named yet Forum. Although it faced major criticism
party (FDC) was very vocal during an to deputise Munywagwa although the among especially members who were
impasse in parliament in which sections new members named to the committee questioning what effect it’s likely to have
were calling for the leadership of COSASE – include Rubaga’s South’s Kato Lubwama on the current status quo. Many antici-
Bugweri county’s Abdul Katuntu and Anita and Judith Babirye. pated it may not yield much.

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Feb. 01 - 07 2019 5
Week

Regional experts discuss immunisation Nile Bridge cracking


Global immunization experts on the implementation status
attracts criticism
attending the biannual Regional of the 10  commitments out- The Uganda National Roads
Immunization Technical Advi- lined in the Addis Declaration Authority (UNRA) has come
sory Group (RITAG) meeting will be released later this year. out to clear the air about allega-
in Congo Brazzaville on Jan.23 It will take stock of progress tions and criticisms over the
noted that over the past five made over the past two years, cracking of the newly launched
years, immunization coverage highlight gaps and issue recom- cable stayed bridge in Jinja,
in sub-Saharan Africa has stag- mendations to guide progress Eastern Uganda.
nated at 72%, exposing popula- towards stronger immunization The bridge, UNRA said on
tions to vaccine-preventable systems. Jan.28, is being finished and
diseases and outbreaks. They Even without the report, that the contractor is in the
said there was need for gov- WHO data already shows ill- process of applying permanent
ernments to invest more in ness and deaths due to vaccine- asphalt on the bridge deck.
disease surveillance and engage preventable diseases cost sub- “The wearing course seen
communities to drive vaccine Saharan Africa US$13 billion and referred to as ‘bumpy’ or
deployment during outbreaks. each year, this might reduce cracked by a section of the pub-
RITAG Chair, Professor Hel- with some of the diseases lic is a non- structural attach-
Helen Rees ment and therefore not a defect
en Rees said, “We have mapped being at the brink of being
out what can and must be done the vaccines they needed. eradicated. For instance, the on the bridge”, they said.
to secure the future of millions In 2017, Heads of State from last case of wild poliovirus in Officially launched by Presi-
dent Museveni in October, the
of children on this continent.” across Africa endorsed the Africa was reported in August
525 meter-long bridge is the
In sub-Saharan Africa, nearly Addis Declaration on Immu- 2016 in the north-eastern state
second cable-stayed bridge in
31 million children younger nization, a historic pledge that of Borno, Nigeria. If no new
East Africa crossing Victoria
than 5 years suffer from vac- envisions an Africa in which cases of wild poliovirus are
Nile and linking the Northern
cine-preventable diseases every every child, no matter their eco- detected by August 2019, Afri-
Corridor that connects Kenya
year. More than a half million of nomic circumstances, has access ca will attain the wild poliovi- with the Democratic Republic
them die due to lack of access to to vaccines. A progress report rus eradication goal. of Congo (DRC).

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6 Feb. 01 - 07 2019
Humour Did you know?
Your heart affects
what you see

A team of researchers from Ecole Polytech-


nique Fédérale de Lausanne in Switzerland
that was trying to figure out why we do not
hear our heart beat, has made a surprising
discovery; that our heart affects what we see.
They explain that humans have spectacu-
larly complex internal systems, including
President Yoweri Museveni has cautioned Ugandan against reminding him of his unfulfilled pledges some some pretty impressive plumbing and plenty
of which, he made during the early days of the National Resistance Movement government. of moving parts. If we were to hear them at
work all the time, we would become distract-
ed by all the internal commotion, and run the
risk of missing more important activity going
on around us –which could have disastrous
consequences. So the conclude, the brain
filters it out the heart beat as inconsequential
noise.
As lead researcher Roy Salomon explains,
the brain itself decides which information to
bring to awareness,” automatically ignoring
unimportant stimuli originating within the
body – known as interoceptive signals – and
prioritizing exteroceptive signals coming
from the external environment.
Previous studies have also shown that
a brain region known as the insular cortex
coordinates and integrates these two types of
stimuli.
Publishing their findings in the Journal
of Neuroscience, the study authors describe
The Minister of Justice and Constitutional Affairs Otafire Kahinda how they used functional magnetic reso-
forgives people who voted him out of parliament. nance imaging (fMRI) to monitor the activity
of volunteers’ brains when viewing flashing
images on a screen.
Amazingly, they found that when these
images flash exactly in sync with one’s
heartbeat, activity drops dramatically in the
insular cortex, as the brain attempts to filter
out this visual stimulus. When this occurs,
one may become less aware of the images, in
some cases failing to see them at all.
The researchers conclude that the brain
somehow mixes up this visual stimulus with
the heartbeat, and therefore automatically
suppresses its awareness of it by reducing the
activity of the insular cortex when processing
the image.
Summing up these remarkable findings,
Salomon explained that it came as no shock
to discover that the insular cortex plays a role
in forcing our brains to ignore our heartbeats,
Makerere University committee to investigate Vice but that “what’s surprising is that our heart
Chancellor Barnabas Nawangwe’s decision and report. also affects what we see!”

Feb. 01 - 07 2019 7
News analysis Health Business
Cholera gives city Superfood scientists say Chinese, French firms top foreign
a wakeup call can make you live longer oil and gas suppliers’ database

Issue No. 555 Jan. 18 - 24 2019


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

Uganda’s growing
public debt
Separating facts from fiction and

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Letters are URA tower is great


welcome ! The Uganda Revenue Authority (URA)
multibillion 22-floor headquarters in Naka-
The Editor welcomes short and wa will improve its operations. The URA has
concise letters from our esteemed been renting offices scattered all over Kam-
readers on topical issues. Please pala and it has inconvenienced taxpayers.
send them to:
The Editor, The Independent Many were forced to travel in jam to access
Publications Ltd, services.
P.O Box 3304, We have had very many projects as a
Plot 82/84 Kanjokya St, country and many of those have always
Kamwokya. been funded by donor countries and World
Kampala,Uganda.
Bank but this Shs139 billion tower was built
Email: editor@independent.co.ug using strictly taxpayer’s money. This shows
that Ugandans now pay their taxes.
This building will reduce cost of doing
business through provision of a One Stop
Kudos Police on gun crime Service Centre, save on rent, transport, ICT
connectivity, security, and the courier ser-
I thank the flying squad and the Criminal vices.
Investigations Directorate for the good work
recently accomplished towards the security Sarah Agwere
of this country. They recovered 23 guns, cars
and arrested 380 suspected criminals.
If from July 01 to December 30, 2018 you URA headquarters URA headquarters
were able to recover 15 SMGs, 3SARs,3 toy
guns, 2 pistols, 181SMG bullets, 27 pistol bul-
a bad example are necessary
lets, and 15 SAR rounds of ammunition and Refer to: “URA’s unnecessary headquar-
more, it means Uganda’s security system has Refer to: “URA’s unnecessary headquar- ters” (The Independent Jan.25). Honestly, I
greatly developed. ters” (The Independent Jan.25). All your see nothing wrong with Uganda Revenue
I am convinced that a lot of killings last arguments are right. Challenge is our real Authority building and moving into its own
year were due to wrong people without estate business by private businessmen will headquarters.
licenses owning weapons that are a preserve stagnate especially if all government depart-  Is saving 7billion a year a profit or loss
of armed forces and ammunitions. ments, agencies, and ministries follow the to URA? I thought it was a saving.
But now the question remains one, where example of Uganda Revenue Authority and  Did URA borrow money to build its
do these people get the ammunitions from? build own offices. The economy grows by headquarters or it was in their long-term
What Vincent Ssekatte, the spokesperson of government spending. plan?
CID suspected is very true; that illegal guns  Mwenda, don’t you think that service
being sneaked into Uganda from our war- Michael Lwerere providers like cleaners, caterers, sta-
ring neighbors. So border security needs to tionery dealers will get some business
be increased. in that building resulting into employ-
For car robbers, what the police said is ment?
true; security guards in parking areas deal  During construction don’t you think
with the robbers. Owners of these parking Renting bad for thousands were employed?
lots need to pay our security guards salary
worth the work they do so that they don’t government bodies  Don’t you think that companies that bid
to provide services like electrical, ICT,
engage in such activities. Refer to: “URA’s unnecessary headquar- and plumbing paid taxes?
The 15 drums of bitumen recovered really ters” (The Independent Jan.25). Mwenda  Don’t you know that it’s always pres-
amused. Do we really want the government is always negative but let me inform him tigious for any company to own an
to employ security guards to protect road that renting by government bodies increases office? Actually it’s a sign of progress.
construction materials yet the same roads are safety risks of organisations. A lot of money  How was URA going to benefit by rent-
constructed for our very own beneficiaries? has been embezzled and still inflated in ing?
Such criminals need to be caught because rents of government departments and orga-  Why do you doubt URA’s announce-
they hinder the rate at which our country nization. I support the Uganda Revenue ment of savings on rent?
develops. Authority owning its headquarters building  In terms of savings time by businesses,
Kevin Seguya and Iam waiting for the judiciary to follow. don’t you think a one stop centre is
kelvinsegz@gmail.com good for business?
Charles Ssebina Tina

8 Feb. 01 - 07 2019
The Last Word Opinion

Michela Wrong’s war on Kagame


By Andrew M. Mwenda
How racial prejudice led The Guardian to publish
an article that is basically a hit job on Rwanda

O
n January 14, The Guardian convinced Karegyeya was involved in ter- and would soon return home. The South
newspaper in England published rorism, wouldn’t they be justified to assas- African intelligence had been involved
a 5,800 word long article by Mi- sinate him just like the government of the with Karegyeya in anti-Rwanda operations,
chela Wrong titled “Rwanda’s USA was justified in killing Bin Laden? themselves linked to rich mineral deals in
Kashogi.” It accused President Paul America, Britain and Israel are everyday DR Congo. This source told me that South
Kagame of Rwanda of complicity in the hunting for terrorists and assassinating African intelligence feared if Karegyeya rec-
murder of former Rwandan spy chief, Pat- them. In all these cases, the government onciled with Kigali and revealed their deal-
rick Karegyeya. Wrong makes no effort to is the investigator, the prosecutor, the ings he would cause them a lot of embar-
substantiate her claims with even the most judge and the executioner of the sentence. rassment. They moved quickly to eliminate
rudimentary evidence. She relied on a litany Wrong’s article is silent on this vital issue. him. I shared this theory with Wrong in
of rumours. It is possible Rwanda had wrong intel- London. My source was an American
The article is silent on why it has taken the ligence on Karegyeya’s involvement in intelligence officer, and I shared this with
South African authorities five long years terrorism. However, governments act on Wrong. Why did she ignore this?
to bring the case to court. Karegyaya was the basis of the intelligence they believe, not This is where Wrong and other Western
killed in Michelangelo Hotel in Sandton, an on objective truths. Therefore, even if the journalists reveal their true colours of racial
upscale area of Johannesburg. From the car government of Rwanda killed Karegyeya, prejudice. When Obama kills Osama, it
park to the reception of the hotel, one goes it would only have done so because it does not make him a murderer. Indeed
through four cameras, from the reception believed he posed a severe and immediate during his presidency, Obama’s regime
through the elevators to the rooms, another threat to her national security. Wrong announced proudly almost daily and rou-
three to four cameras. Is it possible that the ignores this. tinely its assassination of “terrorists.” In all
murderers of Karegyeya would walk into Karegyeya had been a chief of intelligence these cold-bloodied killings, Obama and
the hotel, kill him and leave without being in Rwanda. During his tenure he built a his CIA were investigators, prosecutors,
recorded on the CCTV cameras? close relationship with then South African judges, the jury and the executors. No single
The article only suggests that the South vice president, Jacob Zuma and the Tanza- Western media or journalist referred to
African authorities will present 30 wit- nian foreign minister, Jakaya Kikwete both Obama as a cold bloodied murderer, never
nesses. But does not mention any evidence of who later became presidents of their mind in Libya and Iraq, these guys can be
from CCTV recordings. Did Rwanda have respective countries. When he fled Rwanda, legitimately accused of mass murder.
capacity to destroy this evidence in a South he went to live in these countries causing While journalists like Wrong see them-
African hotel? This is where Wrong’s biases their relations with Kigali to turn hostile. selves as holding their governments to
blind the journalist in her. Shouldn’t an article on Karegyeya’s death account, they actually promote the racial
Secondly, Wrong disregards accusations attract a sentence on what nations do to prejudices of their societies and the sadistic
government of Rwanda has made against their intelligence officials who turn rogue? imperial policies of their governments
Karegyeya i.e. that his political party, the Wrong is blind to the existence of other against people in poor countries. The con-
Rwanda National Congress (RNC), works threats to Karegyeya’s life. For example, he stant projection of governments in Africa
with the FDLR rebel group; remnants of had been a chief of intelligence in Rwanda as corrupt and murderous only reinforces
those who committed the 1994 genocide and in that capacity he must have stepped the racial prejudices of their societies and
and which it accuses of terrorism. I met on many people’s toes. Didn’t these people justifies their government interventions in
Wrong in London in 2014 and gave her have motive to kill him? Besides not long poor countries to promote regime change
information I had acquired privately about before his death, the family of a Rwandan- with disastrous consequences as we have
the link between RNC and FDLR. She did Burundian musician, Chris Matata, accused witnessed in Libya and Iraq.
not mention it even once in her long article. Karegyeya of killing the musician over a Karegyeya introduced me indirectly to
It is possible Wrong did not trust me, woman. Didn’t this family have motive to Wrong by suggesting I read her book, `In
which is fine. But it is intriguing how she kill him? the Footsteps of Mr Kurtz’. I loved it in
disregards accusations of the government The time it has taken the South African large part because she demonstrated that
of Rwanda against Karegyeya and his RNC. authorities to bring this case to court even the claims that Mobutu Sese Seko looted
It is clear from the article that Wrong thinks further suggests the possible involvement of $8 billion from Zaire were spurious. This
Kagame personally and those he works Pretoria in Karegyeya’s death. I did explain led me to believe she is free of the stereo-
with generally are bloodthirsty. That is this theory, backed by circumstantial evi- types on Africa that blind her colleagues
why she accuses them of killing Karegyeya dence, to Wrong when we met in London. from assessing governments in Africa with
and without any compelling reason. It also Someone tipped me off that Rwanda intel- impartial lenses. But her articles on Rwanda
leads her to compare Karegyeya with Saudi ligence had been involved in a misinfor- expose that even she is not free of the racial
journalist, Jamal Kashogi. Yet while Kashogi mation campaign against Karegyeya with prejudices of Western journalists on Africa.
was only voicing dissent against the Saudi South African intelligence. On Rwanda, she has done a hit job.
government, Karegyeya is accused by Apparently Rwandan intelligence
Rwandan intelligence of involvement in deliberately leaked information to South amwenda@independent.co.ug
terrorism. African intelligence suggesting Karegyeya
If the government of Rwanda were was working on reconciling with Kigali

Feb. 01 - 07 2019 9
cover story

Uganda’s big
China debt
Minister of Finance Kasaija’s
secret letter to Museveni

10 Feb. 01 - 07 2019
cover story
Evolution of Public Debt
10 60

8 50

6 40
US$ Billions

4 30

%ofGDP
2 20

o 10
2005/6 2005/7 2005/8 2005/9 2005/10 2005/11 2005/12 2005/13 2005/14 2005/15 2005/16 2005/17

External Debt Domestic Debt Norminal Debt/GDP

Source: Ministry of Finance,Planning and Economic Development

W
By Independent Team and deposits money as security in case of rate is a miserly 7%.
default, and the holding of national assets The loan is needed to install 3,839km of
hen, on October 18, as collateral in case of loan payment failure. medium voltage networks, 5,921km of low
2018, Uganda signed “Given what is happening in our peer voltage networks, and 3,403 distribution
an agreement with countries as regards to China debt, we transfers. It would also connect 168,335
China for a US$212.6 strongly believe we should protect our single phase consumers and 4,254 three
million loan (Approx. assets from possible takeover,” Kasaija told phase consumers. That would hopefully
Shs78 billion) for Museveni. push the national electrification rate from
rural electrification, the issue of Uganda’s Kasaija is mainly concerned that China the current 15% and nearer to the 30% rate
increasing debt and the unfair terms of could potentially takeover property related targeted by the government by 2020.
some of the loans were not on the table. to defence and security, public health, Finally, if any renegotiation of the Rural
In fact, the Chinese Ambassador Zheng social services, natural resources, and assets Electrification Loan happens, it will be a
Zhuqian was cheered when he called the of cultural and historical significance to first because the general perception is the
loan “a good example for China-Uganda Ugandans. “Chinese do not negotiate”. When they
Economic Cooperation”. Kasaija’s warning suggests that the give a loan to a poor country, you either
Ambassador Zheng was right. But government should not accept the Chinese take it or leave it, most experts told The
possibly not in the way he meant because loan – unless the terms are dramatically Independent.
that loan has now become an example, renegotiated. But a renegotiation is unlikely In fact, according to Kasaija, Uganda
in discussions between the Ministry of as China already appears to be on firmer has already signed five loan agreements
Finance and President Yoweri Museveni, ground. with almost the same terms. They
of the bad side of Chinese debt, how it China has, through its China Electric include the loan for National Backbone
increases, and what makes its repayment a Power Equipment and Technology & E-Government Phase III, the Kampala-
burden. Company Limited (CET) indicated that it Entebbe Airport Expressway, the Nsimba
At the signing of the rural electrification could invest up to US$3 billion (Approx. Hydropower Project, the Aviation
loan last year, the Minister of Finance, Shs11 trillion) in Uganda’s electricity Authority project, and the Karuma
Planning and Economic Development, distribution sector. It has also been linked Hydropower Dam.
Matia Kasaija said it would enable to a rival bid for UMEME’s distribution
the government attain its target in the concession when it expires in 2025. The escrow account
electricity distribution sector. But behind Museveni is, therefore, expected to proceed Kasaija uses China’s insistence on
that facade, The Independent has now cautiously in dealing with the Chinese Uganda opening an escrow account in
seen a secret letter Kasaija has written to because the loan is urgently needed at the Beijing to show how bad the Chinese loan
Musevemi complaining about the terms of moment since the recently commissioned is.
the loan. Isimba Dam will add 183MW on the grid Under the proposed draft agreement,
“We have noted some critical issues in in March and the 600MW Karuma Dam is before China releases the loan money,
the Financing agreement,” Kasaija writes expected to come on line later in the year. Uganda must open a repayment/reserve
and lists three main areas; on China’s The government needs to raise demand or escrow account and deposit money to
insistence to supply all technology and for the added generation capacity through cover the highest annual amount of interest
materials for the project, its insistence that new connections; especially industries and and fees under the agreement as a security
Uganda opens an escrow account in Beijing in rural household where the electrification in case of any defaults.

Feb. 01 - 07 2019 11
cover story
and labour, and other locally available
Private inputs.
Kasaija’s warning to Museveni comes
Bank when concern is rising over Uganda’s
national debt; especially its China
1% component.
National debt from foreign and
domestic lenders has grown exponentially
in the last five years and there is a fear that
if the current trend of borrowing persists,
the debt could become difficult to pay.
Strident anti-debt calls have been made
by many; from the Auditor General to
the IMF/World bank and foreign donor
embassies and Civil Society Organisations
like the Uganda Debt Network (UDN).
The current Parliament, which
is mandated by law to approve all
government borrowing, has passed about
10 loans in quick succession in its two
years and another five loans are currently
under considerations, according UDN, a
civil society group that monitors national
debt performance.
“We approve a new loan every week,”
said an MP on a recent radio talk show.
As a result, the public debt has
Bilateral increased by 22% from Shs34 trillion in
June 2017, to Shs42.51 trillion by June
Creditors 30, 2018, according to the 2018 Auditor
General’s report released on Jan.04.
Multilateral 29% Although the furor over growing debt
has been simmering for some time, many
Creditors are now pointing at this latest Auditor
General’s report which appears to pour
70% fuel on it.

National assets at risk


Then after the loan money is released, III Repayment Current Reserve Current At the handover of the report to Rebecca
Uganda must deposit the annual highest Account US$311,000 (Approx. 1.2 billion), Kadaga; the Speaker of Parliament, the AG
amount of principal, interest, and fees Kampala-Entebbe Airport Expressway John Muwanga warned that Uganda has
payable. Escrow US$7 million (Approx.Shs27 taken on some significant value loans that
Kasaija warns Museveni that “this billion), Nsimba Hydropower Project have such stringent conditions that they
implies government will open an account US$9.7 million (Approx. Shs37.6 billion), could complicate Uganda’s ability to pay
in China and hold money on that account Aviation Authority US$4 million (Approx. them sustainably.
for the period of the loan”. Shs15 billion), and Karuma Hydropower He said in some cases, Uganda has
“It impounds government funding that Dam US17.6 million (approximately waived its sovereign immunity and that of
would otherwise be used for financing Shs68.4 billion). properties used as collateral in case matters
other development programmes,” he says. go to court.
He adds that, by implication, the account Local content breached He exposed how Uganda has also agreed
balance keeps on growing depending on Kasaija is also concerned about China’s to abide by foreign laws in any proceedings
the drawn and outstanding debt from insistence that “the good, technologies and to enforce agreements, and agreed to pay
beginning until loan is paid. And Kasaija services” purchased by using the proceeds all legal fees and insurance premiums on
warns, the rural electrification loan is not of the loan shall be purchased from China behalf of the creditor in such cases.
the only one to have this clause. preferentially. At the handover of the report, the
As of June 2018, Kasaija says, Uganda “We find this contrary to the cabinet Deputy AG, Keto Nyapendi Kayemba, also
had signed five agreements with Escrow directive on BUBU and Local Content expressed concern.
Account clauses. Together, they hold over policy,” Kasaija notes. “We’re taking in more loans whose
Shs150 billion. This is more money that The Local Content policy is designed to conditionalities are probably not very
some ministries, including Trade and promote participation of Ugandans and conducive for us as a country,” she said.
Industry, Tourism, ICT, and National Ugandan enterprises on projects, build Despite such warnings, the government
Guidance got in the 2018/19 nation budget. local capacity, and direct foreign companies has continued to borrow. The deafness of
And Kasaija warns that money deposited to transfer technology to locals. Under the the government now appears to have made
on the Chinese escrow accounts is expected policy, a minimum of 33% of project inputs those telling the story of Uganda’s national
to grow as the loans disburse until they are must be sourced locally from Uganda. debt to realise that for it to have the greatest
fully paid off. Areas covered under the Local Content impact, it must have a villain. They have
The current escrow account monies are Policy include earth materials like sand, chosen China to be the villain. This appears
National Backbone &E-Government Phase gravel, and aggregate, cement and steel, to be the fuel in the “China to grab Uganda

12 Feb. 01 - 07 2019
cover story
assets” war cry. is mostly borrowed from local At that point, the value of study that found that if
Its narrative is that one commercial banks. Uganda’s export of goods and the ratio exceeds a certain
of these days, the Uganda Kasaija said bilateral services was US$6.4 billion percentage for an extended
government might fail to creditors like China’s and debt service payments period of time, it slows
repay money borrowed from Exim Bank and the Japan were US$209 million ($144 economic growth. The
China and China will seize International Corporation million principle plus $70 threshold differs based on
some national assets that were Agency (JICA) offer million interest) giving a Debt the level of the economy. For
offered as collateral to the preferential terms, including Service Ratio of 3.7%. The ratio developed economies, it is 77%,
Export Import (Exim) Bank of a grant element of between 20 lies between 0 - 20% for most so-called emerging markets
China. and 35%. He did not mention countries. The Debt Service 64%, and less developed
Talk of China grabbing the interest rate but these are Ratio is the most important economies 50%. Every
Uganda assets is also fuelled sometimes as low as 2%. measure of debt sustainability percentage point of debt above
by stories elsewhere; from “China taking over assets in because it shows ability to pay. this level costs the country
Djibouti, Kenya, Zambia, Sri Uganda?” Kasaija said, “I’m That means Uganda was in a about 2% in economic growth,
Lanka, Pakistan, and others. not worried about China taking good position at the time. according to the World Bank.
In all cases, the Chinese have assets.” Based on this, the However, this does not mean
denied any asset grabs. This appears to be contrary government projected to the country automatically is in
In Zambia it was claimed to Kasaija’s position in the letter increase nominal public debt debt distress.
that China was taking over to Museveni. In the letter, he from 37% of GDP in FY2016/17 In the third quarter 2018,
the state power company to says national assets are at risk. to 40.2% in FY2017/18, before the U.S. debt-to-GDP ratio was
recover its money. In Sri Lanka “Given what is happening in peaking at 47.8% in FY2020/21. 99%. Japan’s debt-to-GDP ratio
in 2017, the Chinese actually our peer countries as regards The present value of total last year was 228%. But Japan
took over a strategic port. The
American magazine `Foreign
Policy’ said Djibouti’s China- Escrow account balances as at 30.06.2018
driven debt could soon hit Account Name Account No. Ccy Amount (USD) Ugx. Equivalent
88% of the country’s GDP. In National Backbone & E- Gov’t Project Phase 111 Repatment Reserve 9030012334027 USD 311,037.19 1,206,746,537.90
Account
December last year, reports
Mofped / kampala – Entebbe Airport Expressway Escrow 9030012338545 USD 7,116,816.11 27,611,467,302.77
emerged that Kenya had
Mfped/ Isimba Hydropower project – Escrow Account 9030010820439 USD 9,693,126.39 37,606,907,111.60
offered parts of Mombasa Port
MIN. OF FIN 7& ECON DEVT.CIVIL AVIATION AUTHORITY PROJECT 9030012334086 USD 4,013,380.44 15,570,912,762.09
as collateral for financing its ESCROW ACCOUNT
$3 billion railway. In August Karuma Hydro Power Project Escrow USD 17,638,956.42 68,434,741,170.50
2018, Malaysia cancelled three Total 38,773,316.55 150,430,774,884.86
Chinese-backed multi-billion Source: Kasaija's letter to Museveni
infrastructure projects because
the ballooning $250 billion
debt. to China debt,” he says, “we public debt was projected was obviously very able to pay
But at a press conference on strongly believe we should to follow a similar trend, its public debt.
Jan.08, Kasaija attempted to protect our assets from possible increasing from 27.1% in In 1989, according to a
alley the fear that China could takeover.” FY2016/17 to peak at 35.1% in World Bank report entitled
grab Ugandan assets. Project management FY2021/22. `From Crisis to Sustainable
He told journalists that most experts also say China debt is But two other ratios that Growth’ the Debt-to-GDP of
of Uganda’s debt has been expensive because it inflates the have dominated debate of the Sub-saharan Africa was 100%.
provided multilateral creditors total cost of the projects. debt are the Debt to GDP ratio Debt service to exports ratio
on concessional terms. They “Many Chinese companies and the Debt to Revenue ratio. was 47%.
include the World Bank, can bid for a job but they are Uganda’s debt to GDP ratio Kasaija said Uganda’s
African Development Bank, all owned by one entity; the of 41 per cent is still below the public debt, both domestic
and Islamic Development Bank Chinese government,” one International Monetary Fund and external is $10.7 billion
and others who offer relatively source said, “So they can agree (IMF) risky threshold of 50 per (equivalent to Shs41.326
low interest rates below 1.5 per to offer the cheapest kilometer cent and compares well with trillion) as of end of June 2018.
cent annually – which is almost of road, for example, at US$1.2 other East African countries. The debt-to-GDP ratio
interest free money. They also million when the open market But the Office of the Auditor is 41% and debt-to-exports
often include a grant element rate is US$800,000.” General has said the Debt is 3.27%. Based on these
of more than 50 percent, long payment to national revenue figures, it appears, Uganda is
maturity periods averaging Debating debt ratios collected ratio is bad. He said in a good position to pay its
35 years, and a grace period Fear of China has led at 54%, it is the highest in the creditors as obligations fall
before repayment starts of not to growing concern about region. due. And, according to the
less than six years. Uganda’s public debt According to AG Muwanga, `Debt Sustainability Analysis
According to official generally. According to the interest payments on domestic Report 2016/17’, the managers
Ministry of Finance figures, as `Debt Sustainability Analysis and external debt during the of the economy are putting
of June 30, 2018, multilateral Report 2016/17’ published in financial year 2017/2018 were in place measures to manage
lenders accounted for 68% December 2017 by the Ministry Shs2.34 trillion, which is 17% the debt, including improving
of Uganda’s debt, bilateral of Finance, total public debt by of total revenue collections, implementation of projects
creditors 31%, and commercial June 2017 was US$9.4 billion. which is above the limit of 15% for which money is borrowed.
banks only one per cent of Foreign debt was US$6.2 set in Public Debt Management That should, hopefully, ensure
external debt. Uganda’s billion, and Domestic debt in Framework of 2013. that China does not grab any
domestic debt, which foreign currency terms US$3.2 The Debt to GDP thresholds Ugandan assets.
comprises 33% of total debt, billion. are based on a World Bank

Feb. 01 - 07 2019 13
Uganda Electricity Transmission
Company Limited (UETCL)
The Board of Directors, Management and Staff of Uganda Electricity Transmission
Company Limited (UETCL) congratulate His Excellency the President, Cabinet Ministers,
Honorable Members of Parliament, Officers & Men of the UPDF on this occasion to mark
the 33rd National Resistance Movement Liberation Day.
In order to meet the Government’s 2020 Vision and National Development plan (2015-2020) which aims
to meet the energy need of Uganda’s population for socio economic development, UETCL has;
Energised the 220kV Nkenda-Fort Portal-Hoima transmission line
Upgraded the 132/33kV Queensway substation
Completed construction of the 220kV Kawanda-Masaka transmission line
Completed the construction of the 132kV Mbarara-Nkenda transmission line
Energized the 132 kV Isimba-Bujagali transmission line
Energized the 220 kV Bujagali-Kawanda transmission line
Acquired a 132/33kV mobile substation
These projects will improve on the reliability & quality of supply across Uganda and will also play a
key role in security of power supply in the region and regional power trade and exchange

Our Vision
“Electricity Transmission for Sustainable Regional Development”
Our Mission
“To Buy, Transmit and Sell Quality Bulk Power”
Address: Plot 10, Hannington Road| P.O.Box 7625 Kampala | Phone: +256 417 802 000/ +256 417 233 433
Email: Transo@uetcl.com | website: uetcl.com |Twitter: @uetcl

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MINISTRY OF INFORMATION,COMMUNICATION,
TECHNOLOGY & NATIONAL GUIDANCE

HE Yoweri Kaguta Museveni Hon. Frank Tumwebaze Hon. Idah Erios Nantaba Vincent Bagiire Waiswa
President of the Republic of Uganda Minister for ICT & National Guidance Minister of State for ICT Permanent Secretary

33rd NRM Anniversary


The Leadership and staff of the Ministry of ICT & National Guidance congratulate the
National Resistance and the people of Uganda on commemorating 33 years of Liberation.
The ICT sector contribution to prosperity for all and development
Introduction

I
lic universities thus-far. It has improved ate opportunities for Ugandans.
CT is among the fastest growing sectors efficiency in processing academic data to
in Uganda. The National Development the effect that students’ transcripts are now Coordinating GoU’s Communication
Plan - Vision 2040 envisages ICT as a issued by graduation time. I20 innovators Function
critical driver of inclusive economic under phase one arealso benefitting from
growth and modernization. Increase in ICT attachments to mentorship under the aus- The Ministry has streamlined govern-
uptake is contributing to the ease of doing pices of the ministry to further develop their ment’s communication functions, to ensure
business in the Private sector and efficient capacities. that information trickles down from the
delivery of essential services by govern- After the second call for ICT innovations highest echelons of decision making to com-
ment. The Ministry of ICT & National Guid- for support under NIISP which closed on munities. As such, the ministry has insti-
ance (MoICT&NG) ensures that the country 24th January 2019, the ministry received over tuted weekly press briefings through the
has an enabling legal and regulatory frame- 400 entries. These will also be reviewed government Media Center, where members
work to support continued growth and to select the applications that meet the of the Press and the public are updated on
productive use of ICT in Uganda. government’s funding criteria for support. cabinet meetings and decisions, in a bid to
The Ministry also promotes ICTs to Construction of a hi-tech innovations hub in foster transparency in government business.
improve livelihoods. High on that agenda is Kampala is now at completion stage. It will As Communication and engagement
expanding internet reach, innovations and offer a highly conducive environment with progressively goes online, the ministry has
scaling uptake of emerging technologies high-speed internet connectivity for use by constituted a Government-Citizen interac-
and e-government services. Under Digital- developers of ICT solutions. Therefore, we tion centre, as a one-stop centre for citizens
Vision-Uganda, the ministry is aligning ICT fully associate ourselves with the theme for to interact with and inquire about the vari-
to support various sectors by integrating the 33rd anniversary of the NRM govern- ous functions of government MDAs across
and consolidating ICT strategies into a uni- ment, i.e, “A moment of glory that set a new all social media platforms. The Centre
fied vision. chapter of peace, unity and prosperity for obtains feedback about government func-
Ugandans.” tioning from the public, which it follows up
Creating Opportunities for ICT with the relevant MDAs, to ensure account-
innovators The National Broadband Policy able and continued improvement in public
MoICT&NG has developed a National service delivery.
The Ministry’s policy framework pro- Broadband policy to optimize access to, The National Broadcaster – Uganda
vides for creation of market-tailored ICT and usage of spectrum by synchronizing Broadcasting Corporation (UBC) has also
solutions to create value, employment and investment in the requisite infrastructure been revamped, and its programming
wealth for innovators. Under the National by the government and the private sec- improved under new management, to
ICT Initiatives’ support program (NIISP), tor. Eradicating of duplication of infra- ensure that it produces market relevant
Government of Uganda is funding develop- structure will ensure faster expansion of content and its 11 radio and 4 TV stations
ers of ICT applications for use by the public ICT services, including those areas that effectively and more efficiently support
and the private sector. At the first call for are hitherto unreached. It should spur citizen mobilization for National Develop-
ICT innovations, 340 entries were received, increased access to internet and use of ment. A National Guidance Policy is in
112 of which were eventually funded. electronic services to deepen research, final draft, and will once complete serve
Some of these innovations are already data-sharing and creation of more as the Ministry and National blueprint
on the market. The Academic Information opportunities across Uganda. The Policy, for rallying Ugandans around a common
Management System(AIMS) developed by coupled with recently enacted Data Pro- set of values, as we seek to achieve our
young Ugandans has been well received by tection Act will ensure that content is not national vision of a Modern, Transformed
the market, and is being used by 13 pub- only shared, but used responsibly to cre- and Prosperous Uganda.
news analysis

Nawangwe’s Makerere mess


Does university need a CEO not a vice chancellor?
By Flavia Nassaka - because it was announced by the three “We were caught up in the ping pong

S
top staff associations of academic staff, non- between administration and lecturers. The
ince he was named vice chancellor teaching staff, and the National Union of VC told us to go to class, we went but there
of Makerere University Kampala, Educational Institutions. was no one to teach us. He insisted there
Prof. Barnabas Nawangwe has cast Nawangwe’s approach was also unusual was no strike but lecturers were telling us
himself as a no-nonsense, no com- because, in the past, whenever strikes that they were on strike,” he said.
promise manager. His style has earned him occurred at the university, the administra- “We have never felt this suffocated,”
several nicknames. The latest is `Ostrich’ - tors would mount a public relations cam- Salim said and described how, as someone
for his denial of obvious truths in the midst paign explaining in a series of media confer- who served as a guild representative in the
of a strike by staff of the university. ences each step they are taking in resolving era of the previous Vice Chancellor, Prof.
The strike was announced on Friday the situation. Usually it was to persuade Ddumba Ssentamu, he notices that Ddum-
Jan.18 to commence, for maximum impact, another group; the students, from joining ba was more receptive than Nawangwe of
on Jan. 19; the day students returned from the strikers.Promises would be made of alternative views.
the Christmas holiday to start the second better things and, in extreme cases, the insti- He said Nawangwe’s administration had
semester. But even as the strike entered tution would be closed and students sent not given them, as student leaders, any offi-
Day-3, on Jan.21, Prof. Nawangwe took to home. Not this time. cial notice about what was going on with
his social media handles with denials. First Instead, what was witnessed was Nawa- lecturers strike despite several attempts by
he described reports of an on-going strike as ngwe engaging in what scholars call the them to seek answers. He said that left them
`fake news’ created by the media. `ostrich effect’; the tendency of some man- with no alternative but to give the admin-
“I welcome our students to the start of agers to deny uncomfortable facts or real- istration an ultimatum to answer students’
the semester. This is to inform all students ity by deliberately thinking in error. It is a questions or they would go on strike.
that lectures started today and they should dangerous occurrence which, according to Salim added he was not sure of what the
report for lectures according to timetables” some researchers, is a factor in at least 25% consequences of talking to The Independent
he wrote on Jan 21 adding, “I thank the of sackings of managers around the world. would be on him.
Makerere lecturers and staff for a smooth But before they are fired, the researchers The VC has issued a warning that no one
start to the second semester. We will togeth- say, such managers build a culture of deny- should make statements to the public about
er raise MAK higher.” ing facts in the organisations. the university without authorisation.
He ended it with a warning: “Say NO to In an interview with The Independent on
unprincipled strikes!” Jan.25, the Makerere University Students Court cases pile up
The last line confirmed that Nawangwe Guild President Papa Were Salim described Nawangwe had, at a Jan.03 press confer-
had not missed the start of the strike – how the conflicting information added to ence, said controlling the flow of informa-
even if he was said to be abroad on leave the confusion of the strike. tion was his way of “restoring sanity in

16 Feb. 01 - 07 2019
news analysis
rules as draconian. He said Makerere Uni- he plans to build a system that ensures that
versity was now presided over by demi the administration works well with the
gods who use draconian rule other than university associations. He spoke of recon-
systems under the pretext of causing disci- ciliation. But the sweet talk comes at a time
pline. when all leaders of associations – Bennet
For him, universities should be places Magara of the Administrative Staff Associa-
where free speech thrives and people are tion, his General Secretary Joseph Kalema,
accommodative of others views. He said and MUASA’s Muhwezi have been sus-
Intellectuals debate and disagree to gener- pended.
ate knowledge and progress. When this is When asked about Nawangwe’s
branded indiscipline, he warned knowledge approach of firing, Kiggundu was cagey.
generation dies. “Tempers might have flared because he
He told The Independent on Jan.20 that (Nawangwe) felt juniors were climbing on
he was not surprised when, a week later, his table,” he said, “Every human being
he was fired. He said he knew his time was errors but management is coming up with
coming when, in April 2018, he was warned an agenda to calm this show down that has
to desist from talking about the problems at been on for long”.
Uganda’s oldest institution; especially about Without divulging into details, he said
the disrespect of their employment terms by already the chairperson of University
the Chairman of the Appointments Board. Council; the governing body had scheduled
“The letter suspending me was very meetings with various stakeholders to find
vague, harsh, in bad faith and against all a way out.
laws of this country. It even undermines
my rights as a citizen to have access to my CEO Vs Vice Chancellor
official home, public buildings and related But, education policy experts like Mor-
services. It portrays me as a criminal” he rison Rwakakamba say, meetings such as
said. He refused to hand over as the letter proposed rarely provide a permanent fix to
the institution”. He said members of staff instructed him because, he said, it was ille- the institution’s problems.
who make statements about the university gal. Instead he said he was going to court. Rwakakamba faulted Nawangwe’s top
without authorisation “endanger the insti- If he goes to court, this will be the 5th heavy mechanistic approach to administra-
tution’s image”. case in court against the university and its tion but, he said, the problem at Makerere
Days later on Jan.17, Nawangwe fired administrators. Already, four cases have might be bigger than Nawangwe himself.
Deus Kamunyu Muhwezi, the President been filed in the High Court since 2016. Two “What we are seeing is a collapse of a
of the Makerere University Academic Staff have been settled out of court. proper management system which has been
Association (MUASA). Now, pressure seems to be piling on the further aggravated by an approach of firing
Nawangwe has cast himself as a no non- 63-year old professor of architecture who lecturers and expelling students,” he said.
sense, non-compromising administrator; has only been at the helm of the institution “I am not saying that he shouldn’t crack
especially with those that do not agree with since September 2017. His denial hasn’t the whip. He should do this after all the oth-
his ideas, something that has pitted him lasted long. Demands for explanations ers have failed. Even when firing is decided
against his juniors and students. intensified, not just from his students and clear process should be followed involving
In the suspension letter, Nawangwe staff but the public too that’s why on Jan.22, giving the culprit a chance to be heard”.
accused Muhwezi of misconduct and insub- Nawangwe again took to his Facebook wall. Considering that issues of strikes always
ordination and said security reports had “It is interesting to see so many people came up even with previous administra-
revealed Muhwezi incites other staff to dis- jumping up to shed crocodile tears about tions, including Ddumba who came off soft
rupt university activities. He added that in the suspension of Deus Kamunyu. Deus spoken, calm, and accommodative, Rwaka-
order to protect the reputation of the institu- was suspended for his personal transgres- kamba says it’s time to rethink who should
tion, its activities, personnel and property sions and not as Chair of MUASA. Where preside over such institutions.
from his disruptive activities, he had made were you all when Deus was busy damag- To him universities in Africa and Uganda
a decision to suspend him. ing the reputation of council, management should now look beyond the requirement
But Muhwezi was the 46th lecturer to be and many colleagues who have worked for for one to be leader of the university being
suspended from the university by Nawa- long to build their reputation?” a professor or to have supervised a certain
ngwe in a month. The 45 others had been “Appropriate measures have to be taken number of graduate students. The leader
fired in December over either similar cases to restore sanity when aggravated indisci- of a university should be a Chief Executive
or amidst accusations of sexual harassment pline sets in,” he said in a post. Officer (CEO) with clear Key Performance
of students, fraud, and absconding duty. Now, the feeling is that Makerere’s Indicators. “If a professor also has manage-
Many of the lecturers deny the charges. problems may not be about to end under rial competencies that would be fine but
Some have sued Nawangwe and the uni- Nawangwe. They might worsen. And, the requirements such as one has to have
versity. the administration seems to be realising taught at the institution for a certain period,
Many lecturers who felt some of their col- this. This could be why he has set up a full a professor has ended. Big universities all
leagues, including Muhwezi, were unfairly directorate to manage communications, over the world are now considering CEOs,”
fired from the university resolved not to away from the Public Relations office he said.
return to class on Jan.19 when the university which is being run by Rita Namisango. He He said the current method of choosing
re-opened for the second semester unless announced on Jan.21, that the new direc- top leaders at Makerere is archaic and will
their grievances are heard by management. torate would also handle the institution’s kill the university. He said appointing a
Muhwezi who lectures in the Depart- international relations and is to be manned CEO would signal a new direction; that it is
ment of Forestry, Biodiversity and Tourism by Muhwezi’s predecessor in MUASA, an institution of higher learning determined
had given an interview to The Independent Muhammad Kiggundu. to become a top center for research, innova-
in which he referred to Nawangwe’s new In an interview on Jan.24, Kiggundu said tion and driver of the national economy.

Feb. 01 - 07 2019 17
DOTT SERVICES LIMITED
Engineering contractors

The Management and


Staff of Dott Services Ltd
congratulate the National
resistance movement and
the people of Uganda in
commemorating
33 years of liberation.

LONG LIVE UGANDA

DOTT SERVICES LIMITED P .O. Box 20005, Plot: 30, Bukoto


P. O. Box 345, Moshi, Tanzania
Crescent, Naguru, Kampala- Uganda | Tel; +256 701 700 916/918 | +256 750 566 027
P.O. Box 228, Juba, South Sudan
Email; info@dottservices.biz | www.dottservices.biz

UGANDA TANZANIA SOUTH SUDAN INDIA


Dott Services contribution to Uganda’s transformation

D
ott Services Limited traces its Currently the company is handling the The project is developed as PPP
roots back to 1994 in Uganda. between UEGCL and Dott/Hydromax
Since 1994 the company’s busi- following projects: under the names of Genmax Nyagak
ness has remained focused on  Rehabilitation of Selected National Limited.
meeting the needs of its clients by building Roads (6 Lots), Lot 6: Nakalama- Tir-  Nyagak III is being developed with a
quality into every project. inyi –Mbale Road (102.0KM), Uganda lowest tariff in Uganda of US cents 5.74.
The company is building a multi-million-  LOT 1: upgrading of mtwara-mnivata
dollar industrial facility, bridge structure, section (50km), Tanzania Company’s impact on economy
roads, electrical and water projects.  Construction of Rwengaaju Model The company has created direct and
It started small with an investment of Village Irrigation Scheme in Kabarole indirect employment opportunities to the
100,000USD and with a policy of reinvest- District, Uganda local population. It also trains and nurtures
ing the profits back into the business. To  Farm Income enhancement and for- competent Ugandan engineers and other
date, the company has grown its invest- estry conservation Programme proj- technical staff. Many of these have since
ments to the tune of US$100million ect-2; Lot 4: Doho II irrigation scheme become a backbone of the company’s
The concept and strategy of the company infrastructure and facilities in butaleja operations not only in the country but also
is; a reliable engineering infrastructure district, Uganda beyond.
service provider to be in line with the gov-  Construction of hydro power project It also provides free and clean drinking
ernment priorities. This strategy has seen 4.8 mw on river waki bulisa district, water to the families surrounding areas
the company take part in infrastructure and Uganda where it has its projects. It has also worked
energy projects and more.  Construction of hydropower project 5.5 on power supply and roads that are near
The company is a typical product of hard mw at nyagak iii –paida-uganda to the local communities – like in Semuto,
work, commitment and perseverance. Its  Construction of Rural Electrification Kachumbale, and Buseruka. This is done as
success story starts with four young Indian project in Eastern uganda under Lot:1 one way of giving back to the community
engineers who came to Uganda in 1994 Kamuli and Buyende Districts Project under its corporate social responsibility
with a dream and managed to build the Under JV of HIDELECO/DOTT JV, function.
biggest and the strongest infrastructure Uganda The company did an escarpment road
firm in East Africa. It has since become a  Construction of Rural Electrification from Buseruka trading centre to Kaiso-ton-
reference for new investors who want to schemes under lot 5: central service ter- yo landing site before constructing Kaiso-
come and invest in Uganda. ritory (nakaseke, nakasongola, luwero, Tonya road. This access road was made to
kiboga and kyankwanzi districts proj- benefit not only the community living on
Infrastructure projects ect Under JV of HIDELECO/DOTT JV, the shores of the Lake Albert but also for
Dott services has established a number Uganda the oil exploring companies while going
of stone quarries and crushing plants at  Drilling, excavation, loading, transpor- about their business.
various places in the country. These devel- tation, dumping, spreading & leveling The company actively participated in
opments include: Asphalt Plants in Semuto, etc. Project 2, India the afforestation program in conjunction
Ishaka and Kachumbala with Asphalt Pro- with Hoima district and WEF. And in these
duction capacity of 120 tons/hour. Others Energy sector achievements entire establishments and in all its con-
are Stone Quarry and Crushing Plants in  Development, own and operate a struction projects, it has been Dott services
Semuto, Ishaka and Kachumbala, Masindi hydro-electricity power plant, pro- cardinal principle that all the construction
and Arua. ducing 9MW of power, which was sites security is manned by veterans from
The company has also invested in heavy commissioned by President Yoweri Uganda People’s Defence force—starting
plant and machinery for road construction Museveni in January 2013 with a total with the implementation of Kafu-Masindi
of bituminous type to carry out at least investment of US$38million funded by Road Project way back in 2004 to date.
500KM simultaneously. Total investments Afdb and PTA (Now TDB) banks. Interestingly, where the company has
into infrastructure related businesses are  Development, own and operate a been called upon in case of disaster and
close to US$40million. hydropower plant of 4.8 MW in Hoi- emergency, it has always been readily
In addition, the company has success- ma/Buliisa districts. It is funded by PTA available – even when Government did not
fully completed several projects for Govern- bank (Now TDB) with a total invest- advance any funds. The company would
ment of Uganda, South Sudan and Tanza- ment of US$18.5million. use its resources to fix the problems before
nia in the fields of roads, water and sewer-  Development, own and operate a getting paid by the government. The com-
age, buildings (industrial and commercial), hydropower plant of 6.6 MW in Zombo pany’s consolidated turnover in 2016-2017
environmental (solid waste and landfill District. This is planned to be com- is US$82million with a current order book
sites management), bulk water dams, irri- missioned in the last quarter of 2021, value of over US$600million.
gation schemes, electrical transmission and funds from equity & Grant from GOU
distribution, street lighting, hydro-power in combination with external debt with
and solar power projects. a total investment of US$19.38million.
news analysis

Death of the death sentence


Bill to align death penalty laws reawakens
debate on punishment for capital offenses
By Flavia Nassaka noted that the convict is 43 years old. “If you kill, you are killed too. For us it’s

O
“I find the 40 years appropriate, minus that fair,”said Uganda Muslim Supreme
n Jan.22 a man who confessed the four years on remand leaving the Council’s Hajji Nsereko Mutumba. He cited
in the High Court in Kampala accused to serve 36 years,” the court ruled. Islamic teachings, which he said are similar
to have killed his wife in an acid Kakaire told court he is responsible for to the biblical “an eye for an eye”. He said
attack was sentenced to 40 years pouring concentrated sulphuric acid on his this was part of God’s law given by Moses
in prison. The sentencing of Khassim Ka- wife Josephine Namanda, who he suspect- to ancient Israel and was quoted by Jesus.
kaire who has been on remand for murder ed to have an extra marital affair. In Uganda, according to the law, people
at Luzira Prison since2015 by High Court This case gained attention as it was heard on death row are supposed to die by hang-
judge Anthony Ojok Ayuko was seen by when parliament was handling a contro- ing. Up to 149 people are currently on the
some as too lenient. Kakaire, they said, versial Bill; the Law Revision (Penalties in death row. One qualified for hanging three
should have been sentenced to death. Criminal Matters) Miscellaneous Amend- months ago.
Judge Ayuko anticipated that reaction ment Bill 2015.The Bill seeks to amend the Uganda Prisons’ Frank Baine told the
and in his ruling showed that he appreci- Penal Code Act, Cap 120, the Anti-Terrorism Independent that the 148 have either
ated the gravity of the crime and the pain of Act, 2002, the Uganda People’s Defence appealed or their cases are at the Supreme
the victims. Forces Act, 2005, and the Trial on Indict- Court level awaiting final judgment.
“This kind of offence must be discour- ment Act, Cap 23. “The prisoner who qualified is supposed
aged at whatever cost. Someone would While the Bill does not seek to scrap to be hanged in a period not later than three
rather shoot you and you die than leave you death penalty, it became a major area of dis- years,” Baine said. The law, however, pro-
in such pain,” the judge said. cussion. Some MPs proposed a referendum vides that if a convict on death row is not
But, he noted, the offender had opted to allow Ugandans decide whether or not executed in three years, then the sentence
not to waste court’s time by going into a they still need the law in place. Arguments automatically becomes a life sentence. He
full trial and had pleaded guilty under the in favor of lenience and those in favor of said many convicts have had their sentences
plea bargain arrangement, was also affected severity came up, not just among legislators reduced because executions last happened
by the attack, and was remorseful. He also but among ordinary members of the public. in 1999.

20 Feb. 01 - 07 2019
news analysis
Four months later, he re –echoed his plan
at the commission of prison officers say-
ing that criminals are taking his leniency
Up to 149 for granted. “Criminals think they have a

people are right to kill people and then just keep their
own heads….. I am going to revise a bit and
currently on hung a few.”
He said removing the death penalty from
the death the law books of a country like Uganda

row. One
which is pre- industrial will only cause
chaos.
qualified Shamim Nalugemwa, an advocate work-
ing with Uganda Law Society agrees. She
for hanging says the penalty should stay to tame those
that are unremorseful. But, she says, the
three processes for dispensing justice should be
months ago refined to ensure that people do not get
punished for crimes they did not commit.
“It was gruesome. There was no time
limit; they could hang even after 10 years,
seven months, whenever they felt like. Do
you know the trauma that would cause?
That’s why we used to hear of someone
hanging themselves in prison,” she says.
For her, the discussion of whether or not
sentences were abolished in favour of hav- to retain the penalty started long ago having
ing each case handled individually. That is been discussed even during the SSempebwa
how, years later, Kakaire can be sentenced Constitutional Review Commission and
to 40 years in prison even after confessing should be guided by arguments of why
to murder. punishment is given.
To Baine, all this was done because the “Why do we punish? Is it to revenge or
That is when President YoweriMuseveni judicial officers realized that the death sen- to deter?” she says. According to her, those
signed a death warrant to have 28 hanged in tence is not a deterrent to crime and Article that have reformed should be rehabilitated
an execution that sunk in Musa Sebirumbi 22 of the constitution provides that every- and sent back to their communities.
who was a Uganda People’s Congress one has a right to live and no one should Her argument is supported by the mover
chairman in Luweero during the Obote II take away that right. of the amendment Bill in parliament –
government. He said as prison officers, they are Merdard Lubega Seggona (MP Busiro East)
He was hanged for the murder of Edid- reformists who believe that a convict can who said the current law on the death pen-
ian Luttamaguzi, a renowned collaborator still be useful in society whether while still alty should be left intact for the most serious
of Museveni’s National Resistance Army in prison or after they have served their crimes.
rebels during the 1981-86 bush war. sentence. He says the death penalty is considered
President Museveni has over the years the very last resort as capital punishment.
‘The price of lenience’ been seen to be in favor of the Baine argu- He says to qualify; one has to have gone
Baine says the slow execution should ment. through a lot of processes that take a lot of
speak of how unnecessary the death penalty In 2009, using his prerogative of mercy, time. That is why a convict is given a chance
has become and that Uganda should join the President in a prominent decision par- to go up to the highest court of the land –
the global crusade to abolish the sentence doned Chris Rwakasisi, a former Minister the Supreme Court to defend themselves.
completely. He said more than 15 countries for Internal Affairs in Milton Obote’s gov- He says that’s why his Bill is not about
in Africa have abolished it. ernment who had been on death row since erasing or not erasing the death penalty but
Baine speaks of the Supreme Court judg- 1985. about aligning the laws that dictate the pen-
ment in an appeal of Susan Kigula and 416 Also, at a campaign rally in Fort Portal alty with the decision of the Supreme Court
others vs Attorney General that saved a town in 2016, he hinted on the possible making death penalty discretionary.
lot of people from being hanged. Kigula, pardoning of former Tooro Kingdom Prime “That debate came up because MPs
together with her house help, Patience Minister John Sanyu Katuramu. Museveni didn’t understand what these amendments
Nansamba were sentenced to death for kill- said he had no problem with pardoning are about. It’s about harmonising all the
ing her husband. Court heard that Susan Katuramu who had been on death row for laws that talk about penalty to ensure that
Kigula, together with her maid cut her hus- assassinating Prince Charles Kijanangoma. mandatory death penalty for death sentence
band’s throat while he lay in bed. His sentence was reduced to life imprison- is removed and left to the discretion of the
But Kigula, together with 416 others, ment after the Kigula appeal judgment. judge hearing a particular case,” he said.
in a move that would rock the legal field But Museveni’s magnanimity seems to The Bill that is due for second reading
decided to appeal in order to have the have recently changed. seeks to amend the Penal Code Act, Cap
death sentence declared unconstitutional During theJudges Annual Conference 120, the Anti-Terrorism Act, 2002, the Ugan-
and abolished in Uganda. The appeal that in January last year, Museveni said he will da People’s Defence Forces Act, 2005, and
dragged on for nearly 10 years ended up soon resume executions. the Trial on Indictment Act, Cap 23.
in the Supreme Court where she lost in “We believe in the Law of Moses; eye for
her desire to have the death sentence abol- an eye”, he said “I have been making the
ished. But the case led to serious changes mistake of not sanctioning these death sen-
to the death penalty as mandatory death tences, I am repenting”.

Feb. 01 - 07 2019 21
THE MINISTRY OF WATER
AND ENVIRONMENT

HE Yoweri Kaguta Hon. Sam Cheptoris Hon. Ronald Kibuule Hon. Kitutu Mary Goretti Mr. Alfred Okot Okidi
Museveni President of the Minister for Water and Minister of State for Minister of State for PS, Ministry of Water &
Republic of Uganda Environment Water Environment Environment

THE MINISTER FOR WATER AND ENVIRONMENT, MINISTER OF STATE FOR ENVIRONMENT, MINISTER OF STATE FOR
WATER, THE PERMANENT SECRETARY AND STAFF OF MINISTRY OF WATER AND ENVIRONMENT, CONGRATULATE
HIS EXCELLENCY THE PRESIDENT OF THE REPUBLIC OF UGANDA GENERAL YOWERI KAGUTA MUSEVENI, THE
CABINET MINISTERS, MEMBERS OF PARLIAMENT AND ALL THE PEOPLE OF UGANDA ON THIS AUSPICIOUS
OCCASION AS NRM MARKS 33 YEARS IN OFFICE.

A
s we celebrate the 33rd Anniversary The Ministry pledges to continue working with a purpose to increase access to safe
of NRM, the Ministry of Water with NRM to serve all Ugandans through water coverage. As of June 2018, the
and Environment is proud to various initiatives and priority programs access to safe water in the rural areas was
have contributed to the process of that subscribe to Uganda’s development estimated at 70% while in the urban areas
transforming our Country from peasantry agenda to achieve the National access to safe water increased from 71% to
to modernity. We deeply appreciate and Development Plan (NDP II) and Uganda’s 77%. This increase is partly due to a new
congratulate H.E. President Yoweri Kaguta Vision 2040. baseline survey produced for the urban
Museveni and NRM for ensuring unity, This is being done by focusing on water areas covered by NWSC where coverage
stability and prosperity within the Country. and sanitation infrastructure development was 83.7% compared to 79% in 2017. The

H.E. Yoweri Kaguta Museveni commissioning Lirima Gravity Flow scheme


percentage of improved water of Olweny irrigation scheme
sources that are functional in and 14 Windmill powered
rural areas was at 85% and at water Supply is ongoing.
95% in the urban areas. 85% of We however need to
the households in rural areas increase compliance to water
accessed safe and effective resources regulations in terms
sanitation while 95% of the of compliance to waste water
households in the urban areas discharge, surface and ground
accessed improved sanitation. water abstraction by taking
The Umbrella Organizations legal/corrective action against
were gazetted as Water non-compliant permit holders.
Authorities in July 2017. This will reduce the on-going
They mainly focus works pollution of our water sources.
for establishing their new The construction of a model
governance, conduct related waste recycling plant for
capacity building, financial Minister for Water and Environment Hon. Sam Cheptoris laying a water Kampala Capital City Authority
management and monitoring pipe during the ground breaking ceremony of Kiwoko-Butalangu piped and rehabilitation of Kirinya
systems. water supply and sanitation system waste water treatment plant
The Ministry constructed and were completed.
expanded 140 water systems The Ministry obtained water
out of which 79 water systems quality testing/monitoring
were handed over to National equipment for toxic wastes
Water & Sewerage Corporation from oil and gas activities in
(NWSC) for operation and the Albertine Graben. The
maintenance, 21 systems are equipment is used to analyze
under Umbrella Organizations and identify any pollutants
and 35 were handed over in water which result from
to private operators. One oil and gas activities in real
major outcome of the water time. 32 surface water and 17
system expansion has been groundwater stations were
the significant increase in upgraded to transmit data.
the number of new water Compliance to waste water
connections (by new users) discharge permit conditions
thereby increasing access improved from 59% to 63%
to safe water services and Rt. Hon. Dr Prime Minister Ruhakana Rugunda and State Minister for while compliance to abstraction
also improvement in the Water Hon. Ronald Kibuule during the launch of the first ever Uganda permit conditions improved
overall sustainability of water Water and Environment Week from 73% to 77%.
services in these towns. The Water resources planning,
sustainability of water services development and management
in the small towns (outside the is being undertaken within
NWSC towns) has improved catchment boundaries, as
due to: opposed to administrative
 Back-up support boundaries and is coordinated
for operations and country-wide in four Water
maintenance which Management Zones (WMZs)
is being provided by of Kyoga, Victoria, Albert and
regionally based Umbrella Upper Nile.
Organizations. In order to prevent
 Implementation of further degradation of
catchment based our environment and to
integrated water resources ensure reliability of water
management (through the 4 supply infrastructure, the
Water Management Zones). sector institutions and other
 Implementation of water stakeholders, including CSOs
source protection activities State Minister for Environment Hon. Kitutu Mary Goretti launching are implementing a number
for new and existing water of activities which include
Wetland protection
infrastructure to ensure restoration of wetlands,
long term sustainability. the cattle corridor, operates by conveying large quantities demarcation of National
Water for Production and manages earth moving from places of plenty to Forestry boundaries and
storage capacity has increased equipment for construction of places of scarcity. There has eviction of encroachers,
from 38.86 million m3 to valley tanks which are hired been construction of 130 pilot re-afforestation in Central
39.32 million m3. To reduce out to individual farmers at irrigation schemes across the Forestry Reserves, tree planting
our dependency on rain-fed subsidized rates and controls country with one pilot scheme at community level, protection
Agriculture and to increase the bulk water transfer in every district. of major river banks, and
our food security, MWE programme which aims at 16 Small scale Irrigation water source and catchment
constructs and rehabilitates supplying adequate amounts schemes and 4 communal protection activities.
earth dams and valley tanks and quality of water all year valley tanks and were MWE demarcated over
country-wide but mainly in round for multi- purpose use completed. Construction works 283.7km of critical wetlands,
and restored 487 hectares (ha)
of degraded wetlands. Coding
of wetlands for Albert Nile,
Aswa and Victoria Nile was
completed. 446km of boundary
were demarcated with concrete
pillars; 2160ha of degraded
forests restored through planting
trees; 2,748.5ha plantations were
established by tree Farmers on
Central Forest Reserves (CFRs);
13,400ha were freed from
encroachment; 1,167ha of new
tree plantations were established
and 30,862,965 assorted seedlings
were produced and supplied.
NEMA supported the
restoration of 100ha for
Mpologoma-Limoto system
and 900 ha of Rwizi catchment
and approved 807 Environment
Impact Assessment (EIA) Bukwo Gravity Flow Scheme in Bukwo district
reports for development
projects in order to take care
of environmental and social
safeguards. The Climate Change
Bill was drafted and submitted
to Cabinet Secretariat for review.
9 staff members were trained on
specialized critical skills (GIS,
Climate Change Negotiation,
Drought and Flood Hazard
Mapping).
By June 2018, Uganda
National Metrological Authority
(UNMA) had established
automated weather observation
stations which generate data
that is used in producing early
warning information in 36 out of
122 Districts. There are 52 major
weather stations of different
categories (Synoptic, Agro met
and Hydro met); out of which
29 were functioning. 23 non- State Minister for Water Hon. Ronald Kibuule monitoring Kabembe-Kalagi-Naggalama towns water supply system
functional weather stations lack
both instruments and personnel.
The Ministry will continue
to serve the Country through
various initiatives and priority
programmes that subscribe
to Uganda’s development
agenda and Vision 2040. The
Ministry rededicates itself
to implementing the NRM
Manifesto 2016-2021 by
increasing access to safe and
clean water to all Ugandans.

For God and My Country

Hon. Sam Cheptoris


Minister for Water and
Environment
National tree planting exercise for the restoration of Mabira Forest
RURAL ELECTRIFICATION AGENCY
“The Peoples Electricity Link”
The Board, Management and Staff of Rural Electrification Agency
congratulate His Excellency the President, Cabinet Ministers, Honorable
Members of Parliament, Officers & Men of the UPDF on this occasion to
mark the 33rd National Resistance Movement Liberation Day.

Plot 10 Windsor Loop Kololo, 2nd Floor, House of Hope, P.O. Box 7317, Kampala, Uganda
Tel: +256-312-318100, Fax: +256-414-346013, Email: rea@rea.or.ug

Growing Africa
The New Forests Company congratulates His Excellency the President Yoweri Kaguta Museveni, the Government
and People of Uganda on this auspicious occasion of the 33rd NRM Anniversary Celebrations.
As a world class leader in the fields of forestry, pole treatment, profitability, employment, conservation and community
development, The New Forests Company remains committed to contributing to the development of Uganda and the
region. The supply of high-quality utility poles, pallets and sawn is sourced from the Company’s responsibly managed
plantations and manufacturing. Our commitment to our neighbour communities is reflected in our unwavering support
towards the forests for prosperity approach.
We join all Ugandans in working towards a prosperous future with renewed hope and confidence.

P. O. Box 71435 Kampala. Tel +256 414 581 249


Plot 1 Kololo Hill Drive Block B 5th Floor Office 5A Kololo Kampala
Please contact roland.nkwitsana@newforests.net if you are interested in supplying untreated poles, Buying
of treated poles, sawn timber and biomass.
interview

Ghost voters in 2021:


Register deaths to clear them
Crispin Kaheru is the Coordinator of the Citizens Coalition for Electoral
Democracy (CCEDU) which recently wrote an open letter to President Museveni
on electoral reforms. He spoke to Ian Katusiime about the issues raised.

In your open letter to the President, elections then you need a legal there a law that prohibits enormous
you talk about monetisation of framework and presently it doesn’t amounts of money in an election? The
elections but this sounds futile given exist. If we have a law to regulate answer is it doesn’t exist.
that it is the preferred method of the campaign spending, that is a first step.

I
President when he is campaigning. For example if you go to the Electoral Are there ways the national register
t is true there have been Commission (EC) and report to them a can be improved to avoid the usual
allegations that the President complaint about one of the candidates ghost voters?
thrives on the use of money and in a given constituency using It is possible. First we have made a
we have also seen his actions point lots of money to fundamental move from a manual to
in that direction. But it’s a wrong campaign, an automatic voters’ register that is
thing, you can’t depend on money the first derived from the national ID registry.
to win an election or to bribe voters. question That, we have done perfectly well;
And there is a foul effect of money in would especially with the coming into effect
elections, the reason we are appealing be: is of the Registration of Persons Act.
to the President to take steps to back What needs to happen is for us
up his words with actions. He has to clean the national ID register
gone on record denouncing the use of as the main master document so
money to win elections and we want that by the time the EC extracts
to believe his words. We are asking from the national voters register,
him to support the Campaign Finance it is doing so from a clean mother
Bill 2018 then we will know he is document.
genuine. If not we will continue to Ugandans are very keen on
doubt him. Campaign spending must registering to obtain a national
be regulated. ID because it is required at a
bank, at work, hospital but the
You talk about the Campaign Finance same Ugandans are not keen on
Bill 2018 as a solution. But we know registering deaths. Because of that
how laws are disregarded in laxity, we find so many ghosts on
this country. the national ID register and on the
That is a first level voters’ register. For us to be able to
solution. If you would clean that up, we need to run
like to secure a sustained campaign to
institutional tell Ugandans that
backing to it is important
fight illicit for Ugandans
use of to register
money in family and
friends
who have
passed
on.

26 Feb. 01 - 07 2019
interview
If you don’t, the ghosts will stay Are you really optimistic about
on the register. I think if we run the government enacting electoral
that campaign in collaboration with
National Identification Registration If nothing reforms?
I tend to remain optimistic at all
Authority (NIRA), EC, the citizens is done on times. You know the challenges
of this country, then we are actually in elections have been increasing
closer to getting a clean national electoral from 2001, they are not getting less
voters’ register. It is also important
to file reports of Ugandans who have
reforms, there and something needs to be done. I
am inclined to think that with the
forfeited their citizenship. is no purpose increasing corruption in elections, the

In spite of all this energy you have


for going to the challenges around the use of money in
elections; the increasing militarisation
to get people to register for National 2021 elections of elections, the violence and its
IDs, there is still apathy to vote in
elections. As CCEDU, how do you because we will effects, the pressure that has come
from the Supreme Court around
work around this? end up in the electoral reforms, and the logistical
The main area of interest for
CCEDU is to get more and more same place we challenges that afflicted the 2016
election all form good ground to
people to exercise their franchise. were in 2001, really move any right thinking
What we do is we run different citizen government to do something. If
and voter mobilisation campaigns. If 2006, 2011 and nothing is done, there is no purpose
you recall, in 2011 when opposition
political parties were going to boycott
2016 for going to the 2021 elections because
we will end up in the same place we
the election, our remedy was that were in 2001, 2006, 2011 and 2016.
people can pronounce themselves on That is why it is important that we
governance issues by participating they don’t have money, how do we take concrete substantive measures
rather than by staying away. So we expect them to conduct elections in regard to an electoral and political
came up with the ‘honour your vote’ without money? In any case they reform process.
campaign in 2011. In 2015 when were supposed to conduct elections
EC and government kicked off the in seven districts by July 30 2018 and By 2021, there may be well over
mass enrollment for national ID, we they did not. 400 MPs given the many new
supported the process through the constituencies. This doesn’t seem
votability campaign. And over 95% In your letter you called upon President good for a fledgling democracy like
of Ugandans that were supposed Museveni to rein in election violence like Uganda. How can we reverse this
to register went and registered. In we saw in the Arua by-election last year. trend?
2016 we had the ‘Topowa’ campaign But you know very well that this violence We just have to work on it using
where we mobilised people despite tends to be sanctioned from the highest the first level reforms that we have
the logistical challenges that affected level of the state. proposed in the past. The increasing
the election. I think 68% was a The scale of violence has been expenditure of public administration
substantial figure based on the 57% increasing when you look at is worrisome and many more MPs,
that turned up in 2011. So those are Arua for example. The effects and district chairpersons and councilors
the campaigns that we run. reverberations occurred across and come in with creation of new districts.
Now that government is launching outside the country. With regard to Previously, we have called for a
an effort at sub- county level to the perpetrator, we need to foster the moratorium on district creation and
register people for National IDs, we question of individual responsibility. representation must be rationalised.
as CCEDU are also planning to launch A person who has meted out violence Previously we have also called for
a massive nation-wide campaign to on another should be individually the rationalisation of special interest
support the process. Get your national responsible on top of an institution group representation. Why should
ID because it is your gateway to being accountable. there be representatives of the army,
exercising your voting right and we I know for sure that many people workers in parliament, and other
will launch that in February. who participated in that violence; groups on a direct vote and yet we are
especially the security officers in a multiparty dispensation.
The EC has said elections in newly have gone scot free. As the public, All these should come through
created constituencies will not take we haven’t seen the punishment political parties and not as separate
place this year because there is no being handed to them because of constituencies. We need to review the
money. What does this mean for civic their actions that violated the code representation of parliament every ten
awareness campaigns? of conduct. Whether the president years as the 1995 constitution states.
First the people in those is directly responsible or not, he Around independence time, we
constituencies are being denied a has a responsibility to call his had 14 or 15 districts and even in the
chance to have representatives as security apparatus to order and National Resistance Council (NRC),
councilors, MPs and that is a cause for to account. Whether that involves we were well represented. From
worry. I think it is in the best interest him summoning himself and his the roadmap released by the EC for
for people in those constituencies to conscience to think through decisions 2021, we will be electing 1.5million
amplify their voices around urging he may have sent out, is something people that is before you add the LC1
government to provide resources for that needs to be put on the table. and 2. If you have numbers crossing
having elections conducted. 2million, what are they leading?
EC, as an election management So we need to rationalise public
body, is in a Catch 22. If they say administration.

Feb. 01 - 07 2019 27
news analysis

Italy lectures France on Africa


Italian leaders irk Paris by backing the Yellow
Jackets and denouncing French colonialism
By Hannah Roberts our foreign policies,” and Foreign Minister For Raffaele Marchetti, professor of inter-

T
Enzo Moavero Milanesi. national relations at Rome’s Luiss Univer-
he 5Star Movement’s attempt to Di Maio was alluding to the CFA franc, sity, the diplomatic spat between Rome and
blame migrant deaths in the Medi- two currencies used mainly by former Paris is the result of long-term economic
terranean on Paris says more about French colonies in Africa that are pegged to and military frictions between Italy and
the dire state of the Italian ruling the euro, with the financial backing of the France that have been exacerbated by the
coalition than the French colonial legacy in French treasury. In exchange, the French immigration crisis.
Africa. treasury holds half the foreign currency of On top of that, inflammatory language
Paris was already furious with Italian these 14 countries, which critics say hinders attracts votes, and ahead of May’s European
Deputy Prime Minister Luigi Di Maio economic development. election the 5Stars are keen to burnish their
for supporting the Yellow Jackets protest Vito Petrocelli, the 5Star president of the anti-establishment credentials by taking
movement. When he then linked French Italian Senate’s foreign affairs committee, a pop at capitalist institutions to win sup-
foreign policy to the drowning of about attempted to explain the rationale behind Di port from the left and take a hard stance on
170 migrants, a Franco-Italian diplomatic Maio’s comments by referring to U.S. diplo- migration to gain favor with the right.
incident was inevitable — though France’s matic cables from WikiLeaks. “Show voters you are dealing with
Europe Minister Nathalie Loiseau has said Libyan dictator Muammar Gaddafi was migration and you will be rewarded,” said
she refuses to enter a “stupidity contest” plotting to replace the CFA franc with a Marchetti.
with Rome. pan-African currency backed by Libyan
Di Maio, co-leader of a governing coali- gold, according to a leaked U.S. diplomatic Karaoke night
tion with the far-right League that has cable from 2011. The invasion of Libya by With the 5Stars looking for potential allies
closed Italy’s ports to NGO boats carrying Western allies put an end to that plan and in the European Parliament after the May
rescued migrants, said the root cause of the destabilised the country, contributing to the election, attacking France’s Africa policy
tragedy is poverty in countries that “use migration chaos whose consequences have is also a way of reaching out to the Yellow
French currency and pay for the French Jackets by showing a shared agenda: abol-
deficit.” ishing the CFA franc is one of the activists’
“This is a colonialism that has never fin- demands.
ished,” said the leader of the 5Stars. Standing up to the French will also go
The sight of Italy’s ambassador to Paris down well with the domestic audience, said
being summoned to the foreign ministry to 5Star activist Massimo Lazzari. Di Maio
explain did little to dissuade League leader “is trying to get back some votes we have
and Interior Minister Matteo Salvini — who lost,” he said, adding that Italy has been
enjoys few things more than baiting French too acquiescent with the major European
President Emmanuel Macron — from join- powers in the past. “We have to defend our-
ing in a few days later. “The migrant prob- selves. France treats Italy as a colony, eco-
lem has many causes,” he said. “In Africa, nomically and illegally sending back child
some take away wealth from the people and been mainly borne by Italy, he said. migrants. Previous governments allowed
the Continent. France is certainly among “Luigi Di Maio had the courage to lift the this to happen. We push back,” said Lazzari.
them. Italy isn’t.” veil of hypocrisy which hid the scandalous “These comments will increase divisions
The Italian opposition dismissed Di system of the CFA franc,” said Petrocelli. with France and leave Italy more marginal-
Maio and Salvini’s comments about French In reality, most migrants who arrive ized” — Raffaele Marchetti
foreign policy as “lies” and “propaganda” in Italy originate from countries such as While there may be short-term electoral
driven by internal coalition rivalry and an Tunisia and Eritrea that don’t use the CFA gains, opposition parties point out the dan-
attempt by the 5Stars to upstage the League, franc. Among the top 10 countries of origin ger of running foreign policy like an election
which has long dominated the migration for refugees arriving by sea in Italy in 2018, campaign. The situation is “getting out of
issue with its hard-line stance. Ivory Coast is the first country using the hand,” said former Prime Minister Matteo
CFA franc to appear, at No. 8, according to Renzi from the center-left Democratic Party:
Gaddafi’s gold UNHCR figures. ‘The damage to the credibility of Italy and
But while the 5Stars are known for sup- its relations with its historic friends is huge.
Godwin Chukwu, founder of the Federa-
porting wacky conspiracy theories, this Foreign policy is serious, it’s not amateur
tion of the African Diaspora in Italy, said
looked like a calculated attempt to win back karaoke.”
Italy should remember its own colonial
votes from the populist right and left fringes Alessandro Alfieri, a Democratic Party
past in Somalia, Ethiopia, Eritrea and Libya,
ahead of May’s election for the European senator on the foreign affairs committee,
adding: “Di Maio and Salvini cannot give
Parliament. Sliding support for the 5Stars pointed out that France had supported Italy
lessons to France.”
was highlighted by a recent election in Sar- against the threat of EU sanctions over the
Chukwu cited Di Maio’s promise to
dinia, in which their share of the vote fell to 2019 budget. “We are witnessing a radical
Italian voters that foreigners would not be
29 percent from 42 percent. change in foreign policy, which betrays our
eligible for the 5Stars’ flagship campaign
That impression was reinforced by sup- national interests,” he warned.
promise of a basic citizens’ income. “Africa
port for the anti-French outbursts from Long term, such attacks are likely to leave
is here in Italy but the minister cares noth-
Prime Minister Giuseppe Conte, who said it Italy more isolated in Europe.
ing for these poor people,” he said.
is “legitimate to question the effectiveness of

28 Feb. 01 - 07 2019
Umeme, Transforming
Uganda’s Energy Sector
Investing in Uganda's energy sector to expand the distribution
infrastructure; deliver safe and reliable electricity; increase grid access;
reduce energy losses and enhance efficiencies.

Generation
Transmission and Distribution
2005 300
Megawatts 3,142 To Date

Industrial Customers on grid


To Date
930
Megawatts
(Installed Capacity)

2005
290,000
Customers
To Date
1,230,000
Total Customer Base

2005
5,000
Transformers

11,909
To Date

Transformers Installed

2005 12
Substations 2005 17,110 Kms
of Distribution lines
To Date
10 21
Newly built Refurbished
To Date
33,960 Kms
of Distribution lines (MV and LV)

38
2005
%
UGX
1.7 Tn
(June 2018)

83 %
To Date
50 %
UGX
160 Bn
(2005)
2005
16.7
To Date
%

Reduction in Increased Improved Grid Enhanced Customer Service Revenue Collection Yaka! Power in
Energy Losses Access to Efficiency through Digitalisation Increased revenue your Hands
We have reduced power losses Electricity Increased distribution Introduced various initiatives for our collections from Over 950,000
using anti-power theft Access to grid efficiencies to 83% leading to customers to reach us. We have a toll 80% to 99%. customers have been
strategies and investment in increased from 5% in minimisation of Government free call centre numbers - 0800 285285 Collections have increased converted to Prepaid
network improvement and 2005 to 22% to date. subsidies and enhancement of / 0800 385385 among various other from Ugx 160 Billion metering.
maintenance. This has led to sector financial sustainability. methods like Social media, internet and (2005) to
increased power stability, third party apps like WhatsApp. Ugx 1.7 trillion (2017)
reduced tariffs and boosted
economic growth.
MTN Uganda CEO Wim Vanhelleputte (L), UCC ED Godfrey Mutabazi (R) and other MTN executives at a recent event in Kampala.  INDEPENDENT /SILVER OFWONO

MTN Uganda troubles


Telecom told to fulfil the National Broadband
Policy as a condition to have licence renewed

I
By Isaac Khisa 23million subscribers. who served as chief marketing officer.
But something changed since 2015 This preceded deportation of
t is impossible to tell a story as the company faced multitude of another executive, Elsa Mussolini,
about the Uganda’s telecom accusations that seem not to be coming an Italian national on Jan. 23, for
revolution that began more to an end soon – ranging from being allegedly inciting violence. Mussolini
than 20 years ago without unable to protect its mobile money served as the telecom’s general
mentioning MTN. customers from fraud to allegedly manager for Mobile Money.
The South African firm undermining national security. Frank Tumwebaze, the information,
entered the country’s telecom market On Jan. 22, the government deported communication, technology and
in 1998 after the entry of Celtel, now two of its foreign expatriates for national guidance minister told
Airtel and Uganda telecom (UTL). This espionage and funding the hostile The Independent that while MTN is
was followed up with entry of other campaigns against the government, a currently in collision with a section
smaller players including Africell. situation that has placed the telecom of security agencies, cabinet in the
However, while the other companies firm in a fix – negotiating the licence previous meetings agreed to renew the
went through several ownership renewal and battling with the criminal firm’s licence subject to conclusion of
changes or closed shop, MTN investigation against a section of its negotiation with regard to the licence
aggressively expanded in Uganda expatriates. fee and sections of the new National
becoming the dominant telecom firm. The deported executives include Broadband Policy.
Today it has around 10.5million Annie Bilenge Tabura, a Rwandan “The issue that is only remaining
subscribers, and controls slightly more national who served as general was the amount of fee that MTN was
than 50% of the country’s telecom manager, sales and distribution, and supposed to pay…so we are still in
market that has approximately Olivier Prentout, a French national negotiation and hope that in about

30 Feb. 01 - 07 2019
business
two months, the issue of licence should sidelines of the recently concluded Issues under contention in the
have been concluded,” he said. World Economic Forum in Davos, National Broadband Policy that are
President Yoweri Museveni, in a Switzerland on Jan. 23, President
letter to the communication minister Yoweri Museveni said it is time for part of licensing framework:
[Tumwebaze] and the attorney general the telecom firm to list on the stock
dated Nov. 19, is said to have been market.  National coverage – An operator who
“astonished” by UCC’s decision to “We had issues of people cheating seeks a national operator license must
reduce the charge to $58 million, down our taxes and under declaring calls. be able to cover the entire geographical
from US$100million originally set to We bought our own machines and area of Uganda so as to enable universal
the 10-year renewal. were able to see all this. It is important access, promote effective competition
But in a letter dated Dec. 14, the that you float shares on the local and quality of service
minister said UCC had decided to cut stock exchange to allow for local
 Spectrum management- The spec-
trum being a scarce and finite national
MTN’s fee after MTN said it would ownership,” he said.
resource, it needs to be managed and
need to invest about $200 million to Museveni is reported to have
utilised efficiently, optimally and ratio-
meet the conditions of a new National been displeased with the fact that
nally. These resources should not be
Broadband Policy. telecom firms are ‘milking’ vulnerable
owned by the private telecom service
Godfrey Mutabazi, the executive Ugandans by not adding value to providers. This will also aim to outlaw
director at UCC, a government agency their products but instead extending hoarding of spectrum and enable realisa-
mandated to issue licences to telecom ‘talking’ services as the country loses tion of true economic value of the spec-
firms told The Independent in an foreign exchange. trum through spectrum re-farming. The
interview that they are ready to renew principle for all operators will be ‘use it
MTN licence once it agrees to fulfil Company’s revenue up or lose it’ and no operator when selling
some of the conditions as stipulated in According to the group’s half its 13 stake through ‘Mergers & Acquisi-
the policy. year results of 2018, MTN Uganda’s tions’ should have a claim on spectrum.
“The current issues surrounding revenue expanded by 8.8% to The policy also aims for unbundling of
MTN (of deporting its executives) Shs734.4bn on account of improved spectrum allocation and license
is a separate matter being handled data revenue and mobile money  National roaming - Roaming refers to
by a different entity,” he said. “Our revenue exceeding expectations. the ability of a customer to automatically
(mandate) is to grant them licence once MTN Uganda CEO, Wim make and receive voice calls, send and
they meet the conditions as stipulated Vanhelleputte, said in a notice that the receive data, or access other services,
in the policy.” company is well positioned to deliver even when travelling outside the geo-
MTN’s 20-year license expired growth in the sector despite the shake graphical coverage area of his service
in October last year. The company ups experienced in the market recently provider, by means of using the service
applied for a 10 year extension and that were occasioned by the newly of the other service provider’s network.
UCC gave it an initial interim renewal introduced excise duty tax regimes on Currently within the country, customers
lasting 90-days pending resolution of OTT and mobile money. of one service provider cannot access the
some issues with the coming on board “Our half year results ICT services of the other service provid-
of the National Broadband Policy notwithstanding, I see MTN ers. The policy aims to enable customers
before a final license is issued. ending the year on a good note,” to have seamless access and coverage
One of the key issues in the policy Vanhelleputte said. irrespective of their network. This will
is the listing on the local stock market Earlier in 2017, the revenue growth ensure universal access to ICT services
as a new licencing condition for all for Uganda was recorded at 10.7% to  Number portability –refers to the pos-
the telecoms to help mitigate capital Shs 1.68 trillion in 2017 compared with sibility for subscribers to retain their tele-
flights and ensuring that Ugandans Shs1.5trilion in 2016 supported by phone number when changing network
own part of the company. growth in demand for data and digital operator or when changing geographic
The other issues rotate around services. location. Currently the customers can-
the telecom’s rollout obligations, Its main rival, Airtel – trading as not switch from one service provider
quality of service and technological Bharti Airtel Limited, operating in 20 to another service provider, without
advancement. countries across South Asia and Africa, changing the telephone numbers. The
The policy also stipulates that recorded a 53% growth in net profit in policy aims to empower the customers
spectrum should not be owned by Uganda to Shs245bn in 2017. to choose their service provider without
private telecom providers as it is at the MTN’s Shuter, however, said the challenge of changing telephone
moment and that customers should Uganda has only 5% shareholding in numbers
have seamless access and coverage MTN and that they are in the process  Structured renewal of license – Current-
irrespective of their network work. of negotiating how to sell some shares ly there is no clear policy for renewal of
However, Valery Oketcho, the MTN to National Social Security Fund. all licensees’ and some licenses stipulate
Corporate Communications Director He acknowledged that disguised automatic renewal on expiry of the cur-
said the negotiations are still ongoing calls that led to less tax are a shared rent license. This policy aims to provide
to finalise the licence process. problem and that his company was for a structured renewal framework for
“We are simply an applicant in this committed to resolving this and the licensees taking into the consider-
ation of roll out obligations, quality of
and we wait for a regulator to make complying with the laws of Uganda.
service and technological developments
the final decision,” he said adding He said MTN is open to any
 Listing of all telecom operators on the
that UCC has granted the telecom firm investigations to resolve the issues
local stock market as a licensing condi-
another 90-days provisional licence. raised following its licence renewal
tion will help on mitigation of capital
process.
flight among other benefits of local
President meets Group CEO content development opportunities that
Meeting the company’s Group Chief come along.
Executive Officer Rob Shuter on the

Feb. 01 - 07 2019 31
business

Workers at Lake Bounty fish factory in Nakawa.   INDEPENDENT/SILVER OFWONO

Proposed fisheries law


to stir sector growth
MAAIF, FAO advance efforts towards regulation
By The Independent Team food and nutrition.  In fact, Uganda has one to the development of a favorable fisheries

U
of the largest fresh water resources in the and aquaculture sub-sector in Uganda.
ganda will soon have a new Fish- world and almost 20 percent of its surface The proposed Fisheries and Aquacul-
eries and Aquaculture law, if the area is water. ture Bill, 2018 is therefore expected to help
proposed Fisheries and Aquacul- This expansive water resource has sup- address some of these challenges and foster
ture Bill, 2018, is reviewed and ported fisheries sector, enabling both cap- a sustainable fisheries and aquaculture sub-
approved by Cabinet and Parliament. ture and farmed fisheries since 1920s. sector. 
The proposed law is a revision of the Fish  While fisheries contributes 12 % of agri- As part of the review process of the
Act of 2000 Cap 197, which only regulates cultural GDP of Uganda and supplies 50 % proposed Bill, MAAIF and Food and Agri-
capture fish and does not address aquacul- of animal proteins consumed in the country, culture Organisations, through the Food
ture activities such as management of com- a number of challenges, which seriously and Nutrition Security Impact, Resilience,
mercial fishing, fish selling, post-harvest affect the economic and social contribution Sustainability and Transformation (FIRST)
handling, fish transportation, surveillance of fisheries and aquaculture, cripple the Project, organized a National Validation
and control monitoring of fisheries units as vibrancy of the sub-sector. Workshop of the Fisheries and Aquacul-
well as fisheries research. Some of the challenges include over fish- ture Bill, 2018 o Jan.25 at Colleen Hotel in
The proposed Bill is part of efforts by ing caused by increasing demand due to Mukono.
Ministry of Agriculture, Animal, Industry population growth, use of illegal fishing  Participants who include key stakeholder
and Fisheries to provide an enabling policy gear, poor quality of fish seeds, limited in the sector have reviewed the current ver-
and regulation framework to the stakehold- access to fish seeds and feeds, as well as sion of the draft Bill, validated it and pro-
ers engaged in fisheries and aquaculture continued trade in illegal and unrecorded duced a final version of the Draft Fisheries
activities. immature fish hence costing the country and Aquaculture Bill, 2018, that will subse-
The fisheries and aquaculture sub-sectors about US$ 429million in income lost. quently be sent to cabinet for approval.
contribute significantly to Uganda’s nation-  These, coupled with weak legal and insti-  The validation workshop was held on
al economic growth, development as well as tutional frameworks are major bottlenecks the backdrop of regional and country-wide

32 Feb. 01 - 07 2019
business

Fish maw business


consultations that generated views from rel-
evant regional and local government stake-
holders, on the proposed Bill. 
Vincent Sempijja, the minister for MAAIF

now to be regulated
commended FAO and other stakeholders
for prioritizing the fisheries and aquaculture
sub-sectors and promoting relevant laws to
ensure sustainability. 
 “While the Fish Act, Cap 197, provides for
the control of fishing, fish conservation, pur-
chase, sale, marketing, processing of fish, it is
Tough regulation for fish in offing
now outdated to address current technologi-
cal advancement and the changed fisheries By Patricia Akankwasa Fish maws, also known as swim

F
sector,” he said. bladder or gas bladder that keeps some
 He added that “The Fisheries and Aqua- ish maw business will soon be fish such as Nile Perch, buoyant, have
culture Bill is long awaited in Parliament and regulated to minimize exploitation been recommended for consumption
should be finalized as soon as possible” to of fish farmers and suppliers. especially in Asia as they are believed
facilitate its enactment into law. Vincent Sempijja, the agriculture to have some traditional medicinal
 FAO Representative in Uganda, Antonio minister told The Independent in an properties.
Querido said the proposed Bill will help to interview that the sale of fish maw They are also said to be used in the
regulate developments in the fisheries and has become a lucrative business for production of surgical stitching threads,
aquaculture sub-sectors, while fostering the middlemen at the expense of fish melamine plates and anesthetic drugs.
sustainable and nutritious food production suppliers. Data from the agriculture ministry
in Uganda. “That is why we want to regulate it so shows that the country exported more
 “If not regulated, aquaculture can become that our fish farmers and of course the fish than 500 tonnes of fish maws worth $35.5
a potential risk to the environment such as mongers and the fisheries sector really million in 2015 compared with 300 tonnes
increased water pollution and loss of biodi- benefits from this very lucrative business,” worth US$24.5million exported in 2014.
versity. Unplanned aquaculture can also lead he said. Fish suppliers especially fishermen
to competition among other resource users He said the government is presently have welcomed the new development as
that can degenerate into conflicts”, he said. carrying out consultation on the proposed they are destined to earn more income.
 “The proposed law will also help to Fisheries and Aquaculture Bill, 2018, to “I am paying my trade licence on
address post-harvest losses resulting from effect the regulation once it becomes law. a yearly basis. If they want to make
inadequate fish handling facilities and poor This comes in as many months after regulations for the maw business, I have
hygiene while also increasing availability a row developed between the Ministry no problem with that,” said Aggrey
of fish and fisheries products for marketing of Agriculture, Animal Husbandry and Baramiire, the managing director for
and consumption,” he added. Fisheries and exporters on one side and Allied Fish and Fish Maw Traders.
Fish production fish traders on the other over the sale of At the moment, there is no difference
fish maws. in pricing of the fish maws irrespective of
Data from the Directorate of Fisheries The row follows a directive by the the fish sizes. I therefore do not see any
Resources in the Agriculture Ministry shows agriculture ministry that fish maws problem with regulating the business.
that the total fish captured in Uganda fell by should only be sold to recognised The Lake Victoria Fisheries
14.6% from 461,730 tonnes in 2015 to 394, 224 and licensed fish maw processors and Organization in its report advises that
tonnes in 2016 as a result of reduced catches exporters. fish maw should be recognised as a
of Nile Perch. It also said fish maws should be bought tradable product separate from fish so
However, catches of Tilapia and small fish by factories in the fish and not given back as to share the profits equally among
types increased. Overall, capture of fisheries to the fish suppliers to enhance accuracy, the parties involved.
from the lake remained the major contribu- transparency, and accountability in It also says that maw trade
tor to total fish production, accounting for data gathering, food safety and overall regulation should require fish factories
77%. increased contribution to the national to return maw to fish suppliers if they
On the other hand, aquaculture produc- economy. cannot pay for it.
tion grew by 5.4% from 111,033 metric
tonnes in 2014 to 117,000 metric tonnes in
2015.
On the export front, fish volumes to the
Prices of fresh maw among different
international market decreased from 18,785 operators in the value chain
tonnes in 2015 to 16,168 tonnes in 2016, with Extractors and collectors Traders who buy from extractors Middlemen or factory agents
the majority of the volumes destined to the and collectors
Category Weight(g) Price/kg (UGX) Price/kg Price/kg (UGX) Price/kg (USD) Price/kg (UGX) Price/kg (USD)
European Union. (USD)
Consequently, this led to a decline in Small 15-49 - - 100,000-140,000 26.7-37.4 140,000-200,000 37.4-53.5
export earnings from US$134.791 million to
Medium 1 50-99 170,000-200,000 45.5-53.5 230,000 61.5 250,000-400,000 66.9-106.9
US$113.0 million during the same period
under review. Medium 2 100-199 300,000 80.2 330,000 88.3 350,000-500,000 93.6-133.7

This, however, is still far below the 36,616 Large 200-399 400,000 106.9 430,000 115.0 450,000-650,000 120.4-173.9
tonnes exported in 2005, earning the country Extra large 400-699 500,000 133.7 - - 550,000-800,000 147.1-213.9
over US$143 million. Kilo 700-1000 600,000 160.5 - - 900,000-1,000,000 240.7-267.5

Source: Food Safety Associates Limited Report 2018

Feb. 01 - 07 2019 33
Executive Style

‘Future of printing and


publishing in Uganda bright’
Following liberalisation of Uganda’s economy in the 1990’s, the private sector alongside the public
enterprises and publishers have increased investments in printing infrastructure, and the business is
now on the upward trend. The Independent’s Isaac Khisa spoke to the Irene Muwanguzi, the Managing
Director at the Uganda Printing and Publishing Corporation (UPPC) about the industry’s outlook.

There’s a perception that being at the top what differentiates leaders from manag- which these principles apply and the art
of any organisation is so lonely. What is ers. It’s not an easy road because you are of applying them might change but the

W
your view on this? seeing what others are not seeing. To lead principles are similar. Applying these
ell, view leadership like a jour- is to inspire not to manage because people principles to a particular situation or con-
ney. This journey sometimes have to accept to come with or follow text with success is what differentiates
necessitates that you walk you. Envisioning and enabling others to leadership styles. As for me, my leadership
with others, and sometimes see what you see is a huge task. It requires having been nurtured from the private
you walk alone. Hence loneliness at the resilience, persistence, patience, consis- sector; basically in International develop-
top. This happens when you as a leader tence and clarity of purpose because that ment nongovernmental organisations,
need to take personal responsi- process is tough. Brace E. Barber in No my ability to be flexible and adaptable is
bility and make difficult, excuse leadership says that leadership strong. However, I should admit that with
bold decisions that is to ‘watch the direction that the my background, leading in a public entity
others might be majority is going and you go the with different culture demands some level
afraid of making. opposite way’. This is the es- of patience and developing a muscle to
To lead is to have sence of leadership; Loneliness tussle strongly engrained difficult mind-
a vision. Vision- at the top the package of the sets and attitudes. So, it can be frustrating
ing is seeing and leadership journey. You must at times. But like I said, the mastery and
standing in a clear distinguish yourself from the applicability of one’s leadership style to a
future and walk- crowd. contextual change is what differentiates
ing backwards to gifted leaders.
bring people with How do you exhibit leader-
you to that future. ship as the MD for a public Leading one of the biggest printing firms
Now that process is entity as compared to where in the country means that you do clear
you were in the private sector? follow ups on issues in the industry.
What I can say is that leader- What is your assessment of commercial
ship principles are universal and business in Uganda?
can be applied wherever one Printing business in Uganda is quite
finds opportunity to put competitive. It is growing by day. Since
them in practice. It the 1990s, when the liberalized economy
is about flexibility facilitated private players into various sec-
and adaptability. tors alongside the public enterprises and
The context in publishers, it was to add more value to the
industry. Competition has grown includ-
ing in the printing sector. Businesses are
thriving although some people are saying
the economy is going down. I don’t under-
stand. Perhaps the statisticians should help
to provide figures. As for me, speaking for
the printing sector, I believe that today,
the fruits of this policy (liberalisation)
are reflected in the over ten publishing
companies and more than 100 printing
companies in the country engaged in
this business which was not the case
before.
Printing and publishing is now
one of the major eco-
nomic activi-

34 Feb. 01 - 07 2019
ties carried out in full swing in Uganda. Last year, UPPC through the govern- UPPC beyond the life of the joint venture
Though concentrated in Kampala to a ment signed a joint venture deal with the company. Digital printing and the use of
great extent, printing has the potential to German-based Veridos. How does the the latest technology, graphics designs,
spread to spread to over 108 towns across joint venture impact on the company’s sophisticated pre-press printing and post
the country beyond. operations? production equipment will be used to offer
And by the way, this competition is not The joint venture was signed between our customers the best quality printing
only limited to Ugandan based companies the Government of Uganda through UPPC services as we grow our business.
but it is global. Many Ugandans, for one and a consortium of German based compa-
reason or the other, are procuring printing nies Veridos Gmh and G& D. In this Joint What are some challenges, if any, that
services abroad- in most cases due to qual- Venture, UPPC owns 51% of the shares UPPC faces in conducting its business?
ity issues. So the competition is real. As a while our consortium partners own 49%. Financial limitations have been a chal-
state owned printing corporation we have The impact that this arrangement has on lenge to UPPC’s work. This has been
a mandate to offer not only Security print- UPPC’s operations once put in effect is aggravated by historical factors including
ing for Ministries, Departments and Agen- twofold: First, shifts most of the original inherited liabilities of debt, poor machin-
cies but also to non-government actors mandate of UPPC in undertaking direct ery, non-compliance by previous manage-
and individuals. We thus, find ourselves, printing and publishing of all govern- ment, among others. New avenues for
entangled in stiff competition from the ment sensitive information for Ministries, financial increase have ended up meeting
numerous commercial printers. departments and agencies to the joint the historical commitments of the corpora-
venture company; the Uganda Security tion hence stifling its growth and progress.
UPPC has over the years performed poor- Printing Company Ltd (USPCL). This is Secondly, until the full operationalisation
ly in terms of revenue generation. What to enhance efficiency and effectiveness in of the new Joint venture company and
strategies are you putting in place to grow government business. rehabilitation of UPPC to undertake its full
the business amidst the stiff competition? Secondly, it indirectly expands the man- mandate, there are still systemic and struc-
Strategic partnerships are underway. date of UPPC by bringing on board other tural challenges. The good news is that a
We recognise the various players in the highly sensitive documents such as e-pass- sustainable solution has now been found
industry and so, we need to tap on each ports and banks cheques, which have through the USPCL.
other’s strengths. Competition should historically been printed from abroad back
bring us together as we tap onto each to UPPC through its venture company. What is the future outlook of printing
other’s potency in growing our businesses. The deal is that once UPPC is revamped business in Uganda?
We need partnerships and synergies. For and put on full functioning capacity all The future of printing and publish-
instance, we are in discussions to develop operations of the JV will be handed back to ing in Uganda is bright!! More and more
and sign MOU’s with likeminded institu- UPPC. It’s an exciting future. Ugandans are getting literate and therefore
tions like the Law Reform Commission, in need of literature to read. The young
Parliament of Uganda, Uganda Registra- What progress has been made since the generation which forms the majority of our
tion services bureau, Makerere University government entered into partnership population is embracing new technologies,
among others, to expand our revenue base. with Veridos? most of them are digital. This will aid and
This is coupled with various proposals to Well, the partnership agreement was promote the reading culture. The printing
different institutions for gazette sales and formerly signed on October 4, 2018. Since industry in Uganda stands to benefit when
subscription. then, some activities like registering the it embraces technology. Uganda now has
Innovation, creativity and finding alter- company, payment of shareholder capital, only 38% of illiteracy rate and it is fast
native sources of revenue are other strate- supply of initial e-passports to Ministry of catching up to reduce it to zero, thereby
gies to business growth. Operationally, we Internal Affairs by the company and a few making it the most literate country in the
are establishing revenue centres to provide other activities are taking place as stake- African region. Statistics show that every
reports on each product on a weekly basis holder alignment to the vision and mission 5% periodical rise in literacy is sufficient
and our new finance team has established of UPPC and its strategic partner, USPCL for the printing and publishing industry
products with high profit margins espe- continues to take place. In the meantime, in Uganda to grow by leaps and bounds.
cially the Uganda gazette. We are planning UPPC continues to operate normally until In addition, there is eagerness on the part
to improve market coverage by using busi- the JV Company’s activities become fully of the country to improve its packaging
ness executives as well as use of outlets to operational in the country...at UPPC head- sector through the emergence of supermar-
sell our products such as copies of Vision quarters in Entebbe. kets and other business ventures. Printing
2040 and others. We have improved capa- and publishing are inseparable. So, print-
bility for our sales team and more training The increase in technological advance- ing and packaging too is another pair of
will be conducted to ensure effectiveness. ment has impacted on various sectors inseparable ventures. The industry for
We are consolidating the laws into with the printing industry being unex- publishing on one hand and packaging on
compendiums as requested by our clients. ceptional. What initiatives is the company the other is printing. It has the potential to
We plan to have these and other products undertaking to ensure that it remains grow to unlimited levels.
accessed electronically as we improve our relevance in the digital era?
soft and hardware infrastructure such as Our broader vision for the joint venture Where do you see UPPC in the next five
the website and partnerships with compa- company –USPCL is to revamp UPPC. years?
nies such as LexisNexis that have already This means a total refurbishment and I see UPPC positioned as leader in secu-
developed online systems of distribution. face-lift of UPPC to be able to undertake rity Printing and Publishing in Uganda and
Optimising on technology through online its entire mandate effectively as reflected in the region with a full competitive advan-
platforms will definitely increase access in UPPC Act. By this, I envision a well- tage, influencing trends in the global Print-
to our products. We also trying to be on equipped and facilitated state of the art ing and Publishing industry. We will be
top of our game by increasing productiv- printing press, strong and improved oper- positioned to regain the market share. I look
ity through ensuring that our teams are ating systems and technology transferred forward to be a part of this exciting future.
accountable. to Ugandans to guarantee continuity of

Feb. 01 - 07 2019 35
Business
real estate motoring

Bonastore Uganda rewards partners Nissan Renault


Uganda now boasts of 52 fallout deepens

T
franchisees countrywide that
supply a combined product he fallout between car makers,
range of over 4,000 Stock Nissan and Renualt has deep-
Keeping Units (SKUs). ened with Carlos Ghosn now
Speaking at the event, stepping down as Chief execu-
Nicola George, country CEO tive and Chairman of Renault.
Hima Cement, commended Ghosn was arrested and detained in
Bonastore suppliers for their November 2018 in Tokyo, Japan due
dedication and for choosing to under declaration of his income
to partner with the franchise. taxes. At the time he was also Nissan
As part of the celebrations, chairman and the Japanese-owned
an award ceremony was held Nissan ousted him immediately.
to recognise three franchisees Ghosn was the brains behind the

S
A Bonastore (R) official hands a prize to a franchisee representative for their exceptional perfor- Renault-Nissan-Mitsubishi alliance
olutions provider, support more local franchi- mance during the year 2018. widely hailed in the auto indus-
Bonastore Uganda, sees. Modern-Ultra Hardware, sit- try. Ghosn stepped down after his
held its first ever A franchise of Hima uated on Namugongo Road bail request was repeatedly denied
Bonastore Franchise Cement, Bonastore Uganda received the Compliance in Tokyo. Thierry Bollore is set to
Appreciation Day. The event was established in November Award; Kasujja Hardware become the new CEO of the French
held at Golf Course Hotel 2016 as a building solutions located in Buwama, South auto manufacturer while Jean-Domi-
was organised to give a plat- provider offering services like Western Uganda received the nique Senard, chief executive of tyre-
form to Bonastore suppliers, architectural support, finance Finance Excellence Award maker Michelin has assumed duties
partners and establishments and credit advice, contractor and PANF Hardware Depot as Renault chairman. Some observers
to boost their knowledge and material sourcing among located in Nyendo, Masaka have interpreted the fall of Ghosn as a
of the business model, and others. Having been in oper- received the Sales Growth move by Japan to pre-empt any con-
strengthen relationships to ations for one year, Bonastore Award trol of Nissan by French authorities.

aviation aviation

Emirates appoints new Emirates introduces on-board entertainment playlist

E
manager for Uganda mirates has introduced rience by using the Emirates Emirates Airline said: “In keep-

E
an innovative new app to browse the expansive ing with our ‘Fly Better’ prom-
mirates, which flies daily function on its app to entertainment catalogue at any ise, our teams work tirelessly
from Entebbe to Dubai, allow every Ugandan time. to provide ever better world-
has appointed John Ge- to create bespoke playlists Ice, Emirates’ award-win- class travel experiences. Every
min as its new Country ahead of their flight and sync ning inflight entertainment detail is carefully considered
Manager for Uganda. Gemin will it to their seats once on board. has reached a new milestone as we continually enhance and
oversee sales and service func- All customers can plan their of over 4,000 channels of on- develop innovative products
tions for the airline’s passenger, trip more effectively, and demand entertainment. and services for our customers.
cargo, management and airport maximize their onboard expe- Sir Tim Clark, President,
operations. He holds a bachelor’s
degree in International Busi- csr
ness and Management Studies
obtained from the Amsterdam
University of Applied Sciences in
22-yr-old thrills in dfcu ‘Rising Woman’ competition

F
Netherland.
He has worked with Emirates our years ago, San- was young. For this,
for four years, during which time dra Nakayenze set Nakayenze emerged
he served as Business Analysis out to change the third runner up in
Manager within the Commercial lives of women cof- the Rising Woman
Operations covering mainly the fee farmers in the hills of proposal writing
Latin American markets. Sironko district. The social, competition and won
Commenting on his appoint- economic, religious and Shs5m and a study
ment, Gemin said: “I am hon- cultural hardships encoun- tour trip to Nairobi.
oured and very excited to be tered by both young rural The competition was
leading the Emirates operations women and the girl child run by dfcu bank
in her village compelled Nakayenze receiving the dummy cheque during the in partnership with
in Uganda. I look forward to awards dinner.
working with our local team of Nakayenze to form Kalaa Daily Monitor and
dedicated and talented staff to Mugoosi Women Empow- men and facing multiple chal- Uganda Investment
ensure Emirates growth and con- erment Limited. At 22 years of lenges on account of her age. Authority (UIA) Nakayenze
tinued success in the market.” age, she ventured into a trade She says people really never Sandra emerged as the. Below
predominantly occupied by took her seriously because she is her story.

36 Feb. 01 - 07 2019
Business

Uganda Airlines’
pilots starts training
By Agencies qualified on the CRJ-900 will

U
undertake recurrent training
ganda’s planned while those rated on different
national carrier, models of the CRJ will be
Uganda Airlines, going through a differences
has handed over course to get rated for the
the first cockpit crew sets CRJ-900,” said a source
to Bombardier for training close to the Uganda Airlines
a head of the carrier’s project team.
comeback mid this year. He added that it is those
The first set of eight pilots pilots transitioning from
are reported to have been other aircraft types that will
training facility in France undergo the full type rating
while another group has been course that can take up to 28
Lynda Nabayinda, the Airtel’s Customer Service Director, and Nelson sent at the manufacturer’s days before they are qualifies
Babmwine, the Operations Manager, Pegasus Technologies, hand over cash site at Mirabel just outside to fly the new type as first
prizes to some of the winners of the Beera Millionaire with Airtel Money Montreal, according to officers.
promotion at the company offices in Kampala on Jan. 25.   Courtesy Photo. 256businessnews .com Training for the pilots
Uganda Airlines will be was supposed to start last
receiving four Bombardier November but was held
CRJ-900 series that will form up by delays in concluding
the core of its regional fleet. employment contracts.
A pair of Aibus’ rejigged Delays in recruiting
A330 dubbed the -800neo is key position holders are
expected to arrive towards responsible for a shift from
the end of 2020 to serve the the initial April 2019 launch
long haul services. of commercial operations to
Twenty four of an eventual June.
complement of 36 pilots have Sources however, say
been recruited so far and will delivery of the first aircraft
undergo training at different will go ahead as planned
levels depending of their around February 23 followed
current professional status. by others in March, May, July
“Those that already and September.
Some of the Orient Bank staff participate in a blood donation drive
recently.   Courtesy Photo

Weekly share price movement (Jan. 14)


Security Jan. 14 Jan. 04 Movement
BATU 30,000 30000 00
BOBU 135 138 2.2
CENT 1,049 1,071 2.0
QCL 174 190 8.4
DFCU 822 822 00
EABL 5,941 6,313 5.8
EBL 1,346 1,242 7.7
JHL 15,135 15,259 0.8
KA 290 319 9.0
KCB 1,345 1,350 0.4
NIC 14 14 00
(L-R) Amos Otieno, the Deputy General Manager Golf Course Hotel, Walter Wafula,
NMG 2,296 2,386 3.7
Business Unit Head PR Brainchild Murson Cohn & Wolfe (BCW), Alex Bazirake,
NVL 338 338 00
Roke Telkom’s Third Party Account Manager and Rinaldi Jamugisa, PR, Digital and
Comms Manager, brainchild Burson Cohn & Wolfe (BCW) at the launch of the third SBU 30 30 00
edition of Innovation Series at Golf Course Hotel Kampala which is set to focus on UCHM 31 29 6.8
the Hospitality Industry.   Courtesy Photo UCL 19 19 00
UMEME 300 320 6.2
ALSI -- -- --

Feb. 01 - 07 2019 37
Ending mental health stigma
Leaders must consider four critical priorities

T
By Bernard J. Tyson To succeed, efforts to tackle major global mental and physical health later in life. The
problems such as mental health must be game-changer will be found not in hospitals
he world faces an epidemic of collaborative and sustainable. In this spirit, I or clinics, but in communities that nurture
mental health problems that urge leaders to consider adopting four criti- rather than traumatise the next generations.
cuts across borders, economies, cal priorities to support mental health and For companies such as ours, this means
and cultures and carries a stig- wellness. learning how best to deliver health, not just
ma that leaves people suffering First, we need to reduce the stigma sur- health care.
in silence. Tackling the problem rounding mental health in the workplace. Last, and most relevant for health-care
requires political, business, and civil society No one should suffer in silence with a leaders, we must redouble our efforts to
leaders to make mental health and wellness condition that can be treated and even pre- connect mind and body. By better integrat-
a global priority, starting with the Globalisa- vented in some cases. By acknowledging ing mental health services into primary care
tion 4.0 discussions at this month’s annual mental health and wellness issues at work, systems, we can show that a mental health
meeting of the World Economic Forum. we can make a difference in our homes, condition is no different from a respira-
Davos is clearly an appropriate forum schools, and communities as well. Seeking tory, endocrine, or heart issue. And people
in which to raise the issue. According to a mental health care should be as routine and needing treatment beyond what can be
study by the World Health Organisation, unremarkable as seeking treatment for high delivered in primary care should be able to
depression and anxiety disorders cost the blood pressure, diabetes, or a heart condi- see a specialist in the same way they would
global economy $1 trillion every year in lost tion. be referred to an orthopedist or cardiologist.
productivity. Yet the same study also sug- Furthermore, we must reduce mental A healthy mind is just as important to our
gested that every dollar invested in scaling health inequity, a frequently ignored issue. overall health as strong bones and hearts
up treatment for depression and anxiety – This is often a problem in lower-income are.
the two most common mental health condi- communities, where populations may be For the past three years, I have sought to
tions – can generate a return of $4 in terms at greater risk of pathology and often face use the World Economic Forum to make
of improved wellbeing and increased ability the highest obstacles to getting care, in part mental health and wellness a global prior-
to work. owing to a lack of the specialised resources ity. This year, I was encouraged and grati-
The WHO study is a welcome interven- available in wealthier areas. There are some fied to see that mental health was a larger
tion. For too long, we have detached the innovative approaches to addressing this part of the discussions in Davos.
mind from the body and regarded mental problem, such as Zimbabwe’s Friendship By bringing together global leaders from
conditions as something separate from our Bench, and I look forward to learning more all sectors, we can make further progress
overall health. As a result, millions of people about this project from one of its representa- toward ending the silent stigma surround-
needing mental health support have been tives. ing mental health issues. We can devise
ignored, with a dramatic impact on eco- Third, our health systems must shift from innovative ways to improve mental health
nomic resources, productivity, and output. “sick-care” to “well-care.” To move mental services, as well as people’s access to them.
The reality, of course, is that mental and wellbeing into the mainstream of health And we can help to ensure that mental
physical health are closely connected, with care and pursue primary prevention as the health joins physical wellbeing as an essen-
each contributing to overall wellbeing. We most efficient approach, we must under- tial component of Globalization 4.0.
must recognise this if we want the world to stand how to counteract and ameliorate the
be a happier and more prosperous place for effects of adverse childhood experiences, Bernard J. Tyson is CEO of Kaiser Permanente.
future generations. which are highly correlated with poor Copyright: Project Syndicate, 2019.

38 Feb. 01 - 07 2019
obituary

Music icon Oliver


Mtukudzi dies at 66
By Agencies
The death of famed Zimbabwean musician and social commentator lovingly
known as “Tuku” on Jan.23 plunged the African continent in mourning. He
died at Harare’s Avenues Clinic after battling diabetes for years.

A
n inimitable lyricist and charis- Mapfumo. Soundtrack in 1992. The legend went on
matic performer, he was a shining In 1979, he broke away from the group to write and direct the musical production
beacon on the African continent with some of its members and formed the Was My Child. Tuku’s biggest break on
and abroad, not only for creatives Black Spirits. They released their debut the international music scene came in 1999,
but for politicians too. This devoted fighter single, “Dzandimomotera”, which sold when he released the album Tuku Music.
for the rights of women and children was a enough copies to qualify for gold record sta- From there on, he started touring all over
trailblazer on the Zimbabwean music scene, tus. When Zimbabwe got her independence the world, performing to thousands at some
who set a high musical standard that can in 1980, Mtukudzi and the Black Spirits of the world’s biggest music festivals.
only be matched by a few brave hearts who released their fourth album, Africa, widely Despite all the fame and wealth acquired
preserve African cultural heritage by boldly seen as one of the most important albums of in his life, Samanyanga, as he is called
expressing themselves through their craft its time. The album contained the hit track according to his totem, remained a tolerant
without thinking they are inferior to any “Mazongonyedze”. and humble man.
other culture. While Tuku rose to prominence for his “Tuku was the very epitome of hunhu/
Tuku, as he was affectionately known by outspoken criticism of white oppression, he ubuntu. His greatest gift to mankind, espe-
fans and music lovers the world over, was continued his social commentary after Zim- cially Africa, was humility, honesty,
born on September 22, 1952 in Highfield, babwe’s independence. His criticism of thoughtfulness and care, which he
one of popular and oldest high-density poor and corrupt governance saw some pushed for to the last breath in his
suburbs of the Zimbabwean capital Harare. of his songs being banned in his home craft and conversations. These
He was the oldest of seven children and country. are qualities we all struggle
because of the untimely death of his father; With his music career shaping up well, for,” said veteran theatre
he had to quickly evolve from being a the singer spread his wings and ventured practitioner and current
young lad to the leader of his family. He into film. He featured in the president of Arterial Net-
went on to become a renowned singer- films; Jit (1990), Neria (1993) work, Daves Guzha.
songwriter, businessman, philanthropist and Zimbabwe-Respect He is survived by his
and filmmaker. He released his 66th album for Africa (1994) for wife, Daisy, four chil-
last year. In the course of his career he per- which he also com- dren and two grand-
formed across the length and the breath posed and children.
of the world, dazzling millions on all five arranged the
continents. soundtrack.
His unique artistry, characterised by his The bril-
husky voice and dexterous strumming of liance of
the acoustic guitar, saw him scoop numer- Neria saw
ous accolades around the globe, being him scoop
awarded honourary degrees and being M-Net’s
incorporated into the Afro Pop Hall of award
Fame. This placed him alongside other for Best
legends such as Salif Keita, Habib Koite,
Youssou N’Dour and his fellow country-
man Thomas Mapfumo and his group,
Mokoomba.
Tuku believed in the power of collabora-
tion and performed superbly with the likes
of Lady Smith Black Mambazo, Berita,
Grammy winner Joss Stone, Afro Tenors,
Hugh Masekela and Louis Mhlang. One of
his biggest hits, the song “Into Yami”, was
with Ringo Madlingozi.
He started his music career way back
in 1975 with the single titled “Stop After
Orange”. However, in 1977 he ditched his
solo career and started performing with the
group Wagon Wheels alongside Thomas

Feb. 01 - 07 2019 39
comment
By Ezra Munyabonera
Economic costs of increasing debt
Understanding the high risk burden to the
economy posed by the current debt level

D
ue to high borrowing costs—es- public that public investments are falling external financing (including grants)
pecially domestically—Uganda’s short of generating the desired economic implying that government is prone to
debt burden may reach unsus- return. Some of the major challenges to accepting tough conditions from credi-
tainable levels in the medium continued debt accumulation include: tors and donor partners for infrastruc-
term, unless government slows down on High cost of public debt: The cost ture development. The infrastructure
accumulation of new debt. Since the start of of servicing the public debt has con- appetite could further deepen the risk of
implementing infrastructure projects within tinued to rise— from 5.2 percent of the debt distress to the economy.
the National Development Plan in 2010, budget in FY 2010/11 to 12.3 percent of Poor feasibility analysis of the projects:
Uganda’s appetite for debt has increased the budget by 2018/19. Even within the The Public Finance Management Act,
tremendously. During the past year, there limits of debt sustainability (i.e. less than (PFMA, 2015) emphasises that Parlia-
has been a surge in debt accumulation. The 50 percent of GDP), debt repayment is ment should analyse the economic impli-
recently released Auditor General’s annual attained at a very high cost to the coun- cations of budget proposals, approve
report for 2018 showed that Uganda’s debt try’s development—given the proportion acquisition of external financing, and
had increased by 22 percent within one of the budget allocated to debt repay- monitor utilisation. However, the pre-
year—from Shs34 trillion at end of June ments, as compared to other priority vious audit reports consistently show
2017 to Shs41.5 trillion by the end of June development sectors like education, that very few loans are technically evalu-
2018. health, and agriculture. Although the ated. Similarly, many expensive loans
This places Uganda’s debt to GDP ratio overall absorption of external debt has are secured on non-concessional terms
at 41 percent—which is still below the improved compared to previous years, and have no backing assessment docu-
risky threshold of 50 percent identified the 2018 Auditor General Report shows ments of the economic and financial rate
by the IMF and this level compares with that some loans are at absorption levels of return as required by the country’s
other East African countries. However, as low as 10 percent and below; thus cre- Public Debt Management Framework.
the above debt level may be considered ating a high cost to government in terms This portrays inadequate transparency in
unfavourable when debt payment is of interest rate payments. disseminating key information on loans
compared to national revenue col- Over dependency of infrastructure and also impairs the picture of economic
lected—Uganda’s rate of 54 percent is investments on external debt: External returns the country would obtain. It is
the highest in the East Africa region. resources are financing a bigger part of noteworthy that the non-functionality
The 2018 Auditor General’s report also infrastructure development in Uganda. of the Project Appraisal Department has
cautions that if government is to service The three sectors of works and transport, contributed to poor project planning,
the loans as projected in the next finan- energy and mineral development jointly appraisal and design.
cial years (2018/2019 and 2019/2020), it account for about 66 percent of the total Overall, Uganda’s public debt level
would require more than 65 percent of has continued to grow with a surge
the total revenue collections which is witnessed during FY 2017/18. Public
over and above the historical sustain- debt seems to be growing faster than the
ability levels of 40 percent. This is likely
to have adverse effects on Uganda’s
Many expensive economy which necessitates the adoption
of a medium term fiscal adjustment by
ability to finance other development loans are government to ensure sustainability. The

secured on non-
activities. debt level poses a high risk burden to
On the other hand, Uganda’s Medium the economy if other feasible options for
Term Debt Management Strategy
(2018/19 – 2021/22) shows that some per-
concessional financing the budget are not exploited.
Government should strengthen systems
sistent challenges will continue to con- terms and have for efficient and effective loan utilization
strain public debt. These include: low
no backing
amongst institutions. The medium term
debt absorption, unfavorable exchange fiscal framework should also pursue debt
volatility which may increase debt repay-
ment costs, slow export growth and con- assessment restructuring to ease the high cost of the
domestic debt burden.
ditional external loans.
Others identified in the Office of the
documents of the
Auditor General (OAG) reports include: economic and Ezra Munyabonera is a Senior Research
unapproved loans by parliament, priori-
tising public debt over social and devel- financial rate of Fellow Economic Policy Research Centre
(EPRC)
opment sectors like health, education,
agriculture in the budget and poor public
return
investment management. With these
challenges, there is renewed concern by
the Civil Society Organisations and the

40 Feb. 01 - 07 2019
comment
By Guy Standing
Ensuring basic income
The breakdown of welfare state income distribution
systems has created 8 giants to be battled

I
n 1942, William Beveridge issued an causes. Moreover, today’s economic warming and the ecological catastrophe
epoch-defining report that established a insecurity is characterised by uncertainty is the seventh giant that must be con-
model for welfare states in the post-war about the future rather than known risks. fronted, and it may prove to be the most
era. He recognised that the old social People feel threatened by “unknown decisive in mobilising support for a basic
protection system had broken down and unknowns” that, by definition, cannot be income. The threat must be combated
that it was “time for revolutions, not for insured against. In an open, globalised with new and increased eco-taxes or
patching.” The challenge, Beveridge said, economy, only a basic income can guar- levies. Returning the proceeds of “green”
was to slay five giants: disease, idleness, antee basic security. levies to people as equal common divi-
ignorance, squalor, and want. The next giant, and closely related to dends – a form of basic income – would
Today, it is the post-1945 income dis- the first two, is debt. Millions are living turn unpopular regressive measures into
tribution system that has broken down on the financial edge, with unpaid rents, progressive ones. This is already hap-
irretrievably, threatening economic utility bills, and high-cost credit cards. A pening in Canada, led by a successful ini-
failure and jeopardising what Klaus significant rise in interest rates or an eco- tiative in British Columbia. What’s more,
Schwab calls “Globalisation 4.0.” Today nomic downturn could trigger an ava- our research shows that a basic income
we must fight eight new giants. To do so, lanche of distress. True, a basic income would tilt economic activity toward
we urgently need a twenty-first-century would not solve the debt problem, but personal services, community, and vol-
income distribution system in which a pilot projects show that when people untary work, reducing the yawning “care
basic income plays a central role. Such know a regular amount is coming in, deficit” in aging societies.
a system might not slay today’s eight they are likelier to pay down debts and The eighth giant blocking the way to a
giants, but it would significantly weaken gain greater control of their finances. flourishing, inclusive economic system
them. Fourth, and again related, is stress. This is populism, which in some cases – as in
The first giant is inequality – the huge is a global pandemic, with an increasing Brazil under President Jair Bolsonaro,
growth in income and wealth disparities number of people suffering from depres- if not the United States under Donald
within countries that goes well beyond sion, mental illness, suicidal tendencies, Trump – is fast becoming neo-fascism.
what is captured by measures such as and physical ailments linked to job pres- Support for populists also has grown
the Gini coefficient. An increasing share sures, insecurity, inequality, and feelings dramatically in Europe, no doubt owing
of total income is being captured as rent of inadequacy among many people who to chronic economic inequality, inse-
by owners of physical, financial, and so- perceive themselves to be just “licking curity, debt, stress, and anger. A basic
called intellectual property. Meanwhile, at the window” of consumerism. A basic income would make many more people
real wages have stagnated or fallen, and income would not cure the stress pan- feel like valued citizens with a stake in
ever more people are falling through demic, but it would reduce its intensity democracy.
widening holes in the social safety net. and prevalence. I have worked on basic income policies
Traditional redistributive tools such as The fifth giant is the ever-growing pre- for three decades, and I have been
direct taxes, collective bargaining, and cariat – the millions of people who face involved in piloting variants on four
labour regulations cannot reverse these a bits-and-pieces life of unstable, often continents. As the economic, political,
structural shifts, however much those on unpaid labour, having to rely on money and environmental threats to our
the left might wish. wages alone. They are supplicants, future multiply, rolling out a universal
What is needed is a new income distri- without what sociologists call “agency,” individual basic income is more
bution system that restores the market who depend on discretionary favours important than ever.
economy rather than distorting it. By from bureaucrats, family members, and
recycling rents currently taken by the occasional employers. A basic income Guy Standing is a professorial research
plutocracy and elite to everybody, a would offer much-needed respite to associate at the School of Oriental and
basic income paid as a common divi- these people and make them feel less like African Studies (SOAS), University
dend would be the anchor of a reformed beggars. of London, co-founder and honorary
system. Contrary to what some critics Robots are the sixth danger. I am co-president of the Basic Income Earth
assert, a basic income would not be skeptical about the alarming predic- Network (BIEN), and council member of the
regressive. Paid equally and quasi- tions of tech gurus and economists who Progressive Economy Forum.
universally from rentier income, it would believe that artificial intelligence and
necessarily be progressive. technological wizardry will soon lead to Copyright: Project Syndicate, 2019.
The second threat is economic insecu- mass displacement of humans. Still, the
rity. The welfare state was supposed to ongoing tech revolution is undoubtedly
insure workers against contingent risks disruptive and, although it may accel-
and shocks. But it is failing because of erate growth, it will continue to intensify
reduced social insurance coverage, flex- inequalities. A basic income would help
ible labour markets, and widespread to share the gains more widely.
technological disruption, among other The threat of extinction from global

Feb. 01 - 07 2019 41
ART | BOOKS | SOCIETY | TRAVEL | CULTURE

When art preserves unique


history, cultural identity of cities
Cliff Kibuuka is known for his startling images of Kampala landscape; especially
Kampala under night- fall with the dimming light illuminating compacted settlements.
Dominic Muwanguzi interviewed him on what these motifs mean and his recent work.

Y
ou document Kampala like before. Similarly, my recent work or European sceneries like Lamu and
city landscape: the shanty includes a specific concentration on Norway respectively. What fascinates
and compacted housings, cloud formation that has been absent you about these places?
the monumental in my previous artworks. The reason They carry a special identity in
buildings like the old for this inclusion is to inspire the terms of originality and the historical
Kampala mosques and concept of the unique Kampala skyline heritage. Lamu is a small town
the clear skyline. How important is that I believe is spectacular and cannot along the East Africa Coast that
archiving in your art? be found anywhere else. I capture this has maintained its Arabic culture,
There is need to preserve this as a way of documenting the character architecture and primal activity of
identity of the city for the future of the city that is fast transforming. fishing with dhows; not to mention
generation to see how Kampala looked Your recent art includes regional the sedated lifestyle along the Island.

42 Feb. 01 - 07 2019
arts

On the other hand, Roros, a small this is important because, the way I familiar to the local audience because
Norwegian town, is traditionally work, I am more conceptual in my it involves indigenous art motifs. Do
known as a mining town inhabited approach: I spend more time working you feel this draws you to the average
by diminutive humble settlements on one piece. This means that I will Ugandan on the street or you are still
that remind visitors of the size and supply less to the market, and yet my grappling with the issue of identity
character of the miners from yester- audience may be yearning for more. as an artist who is creating art to be
year. Incidentally, both towns- Lamu Lastly, I am able to preserve a special consumed by white expatriates and
and Roros- are UNESCO world painting that I may never be able to not your own?
heritage sites, and I find it critical to reproduce. It is difficult for me to have an
document their traditional personality What is your palette about and how audience in mind when I am working,
in my art. effective is it to evoke the narrative because I work conceptually. This
You print your artworks on a you want to pass on to your audience? means I paint what I feel inside and
specific type of paper. Is this in way I use oils alongside a palette knife not necessarily to capture the attention
experimental or it’s for aesthetic to achieve sharp or strong contrasts of the average person; although I
reasons? in my paintings. They’re obviously must say, it is important to engage
The idea to print on etching rag difficult to work with- building one them on issues that are at hand. This
paper was suggested by a Norwegian layer onto another, and it takes long to explains why I have been able to cross
friend of mine who is a specialist in dry - but it is crucial to reveal the way over to other spaces like Norway or
the discipline of printing artworks I feel about a specific subject matter Lamu. I am not essentially looking
on unique paper. I then realised and to showcase the special attribute forward to have my work draw me to
that I could benefit from it firstly, embedded in it. Here, the viewer is the local masses, but to interrogate or
to create an alternative for those able to realise that the pigments are document the historical and cultural
who want to buy my art, but cannot strong: a yellow is a yellow and a aspects of these specific sceneries.
not afford the original artwork; blue is a blue. There’s no room for
secondly, to undercut the idea of mediocrity.
commercialisation of my practice- The art you produce is obviously

Feb. 01 - 07 2019 43
Bill Gates best ever investment isn’t what you think
Writing for The Wall Street Journal, Bill “Technology is a boom-or-bust even boring, but it isn’t,” he continued.
Gates disclosed his best ever investment business, but it’s mostly busts. I’ve “Saving lives in developing countries
and no, it’s not Microsoft. The philan- always assumed that 10% of my often means getting medicines to remote
thropist and technology magnate says the technology investments will succeed villages and war zones.”
money funneled into global health groups – and succeed wildly. The other 90% And over the last 20 years, the Bill
who buy and distribute medicine has I expect to fail,” he wrote.“Buying and Melinda Gates Foundation has com-
paid off the most in the long run – both in medical supplies and getting them mitted $10 billion to doing just that.
terms of lives saved and money spent. where they’re needed may sound easy,

Woman takes
clothes off in front
of bank manager
to secure loan
After being refused a loan at a
bank in Kazan, Russia, a young
woman tried to convince the
bank manager to approve the
loan by stripping in front of him.
Yulia Kuzmina, who is report-
edly in her mid-20s in Kazan;
capital city of The Republic of
Tatarstan in western Russia, first
pleaded with the loan manager Russians to launch giant ad billboards in earth orbit
before deciding it was time for
desperate measures and started Imagine looking up to gaze introduce orbital advertising seen from just about anywhere
taking her clothes off in front at the moon on a clear summer billboards made up of a grid of on the planet. Experts have
of him. In a video that has gone night only to see the sky full of tissue box-sized satellites called argued that the bright ad ban-
viral, the manager - a young glowing advertising billboards. CubeSats. These tiny satellites ners could interfere with the
male, first keeps his cool, shakes That’s the future envisioned by will orbit 400-500 kilometers ability to study the skies, or
his head, before showing the a Russian start-up which plans above the Earth and use reflec- that the grid of satellites will
woman out. Kuzmina confirmed to launch billboard advertise- tive Mylar sails around 30 feet eventually become space junk
the incident to the press, telling ments into low-Earth orbit as in diameter to catch and reflect and potentially interfere with
reporters: “I am in a difficult early as 2021. sunlight, creating a pixelated more significant space activity
situation. Those who judge me Russian company Star- matrix. The ads would only or aviation safety.
do not know what they would tRocket announced plans to be visible at night but could be
do in my shoes”.

Doctors save man by pumping 15 cans of beer into stomach MP wants dress code
for parents at schools
A man at risk of is contained in most A representative from Tennessee is plan-
dying from alcohol alcoholic beverages, ning to introduce a Bill for schools statewide
poisoning had 15 cans while methanol is found that would make parents and visitors follow a
of beer pumped into in bootlegged liquor. dress code when visiting campuses. Rep. Anto-
his stomach by doctors Methanol poisoning nio Parkinson is drafting the Bill in response to
in order to save his life. can cause permanent concerns from parents, educators, and princi-
Nguyen Van Nhat, 48, blindness and death. By pals about visitors who show up to their chil-
was unconscious in a pumping beer, which dren’s schools dressed inappropriately. “They
hospital in Vietnam. Doctors used three contains ethanol, doctors say you’d be surprised at some of the stuff that
Every hour he was out, cans of beer initially were able to perform we see,” Parkinson told reporters, “I visualise
doctors pumped a can to slow the processing a proper dialysis clothes that are not sexually suggestive.”
of beer into his stomach of methanol. Dr. Lam before the man’s liver “This is the reason you have adults fight-
— for a total of 15. Dr. explained that alcohol processed the entire ing at the schools, cursing teachers out,
Le Van Lam told local comes in two forms; methanol in his system. wearing sexually suggestive clothes in front
media that the level of ethanol and methanol, He eventually regained of little kids, smelling like ‘loud’ when they
methanol in the man’s and that the body consciousness. It’s not show up and more,” he wrote on Jan. 22.
blood was 1,119 times breaks down ethanol known what he had Not everyone is happy
higher than the limit. as a priority. Ethanol been drinking.

44 Feb. 01 - 07 2019
Toyota HiLux Rogue Vs
Toyota HiLux Rugged
Which HiLux variant is a better buy; the cheaper more
off-road biased Rugged or the town-oriented Rogue?
By Agencies the Rogue and the Rugged. The Rogue’s

O
interior mirrors that of the Rugged X and
n the surface, it might appear as offers more extensive use of gloss black trim
if these two vehicles are aimed panels, gets a larger information screen set
at different buyers. At least that’s between the analogue dials and has leather
what Toyota would like for you to seats and a more modern climate control
think but the truth is they’re both HiLuxes! interface. The HilUx variants are mechani-
And that means, if you’re interested in one cally identical to their donor vehicles and
then you’ll be interested in the other. that means they run a 2.8-litre turbocharged
Okay, justification out of the way, let’s get four-cylinder diesel engine making 130kW
into this. at 3400rpm and 450Nm of torque from
1600-2400rpm.
What’s the price and what do you get?
The Rogue adds accessories that bump What are they like on the road?
the price higher than the Rugged. They The Rogue’s ride is firm and that’s in part
include a revised front bumper and grille, due to the fact it’s a ute with a cart-spring
grey rear bumper with wider step, tow bar, rear end and because the thing rides on
load-rated sports bar, hard tonneau cover 18-inch alloys with less ‘give’ in the tyre
with integrated light, tailgate dust-sealing sidewall. The Rugged, however, rides on
kit, marine-grade carpet tub liner, 18-inch 17s with a higher sidewall and thus a little
‘Rogue’ alloy wheels, and the same interior more ‘give’ across bumps. It’s also had its
features and trim as the Rugged X. The suspension tuned to handle the additional
Rogue is an automatic-only model, the other What about safety features? weight of the accessories it carries. The
variants offer both manual and automatic The HiLux carries a five-star rating from
when it was tested back in 2015. But because Rugged is more comfortable both on- and
transmission options. While the Rogue is off-road.
based on the SR5, as is the Rugged X, the the HiLux lacks active safety, if it was tested
Rugged is based on the SR and, so, is quite today by ANCAP it would fail to achieve
a bit cheaper than the Rogue even when a five-star rating. Standard safety features Which one wins and why?
include seven air bags, vehicle stability con- This is an interesting-ish question. If
accounting for the ‘practical’ extras it gets. you’re a poser who doesn’t care for driv-
The Rugged, claims Toyota, is aimed at trol, active traction control, hill-start assist
control, trailer sway control and reversing ing off-road at all, then the more expensive
buyers who need the protection of a more Rogue is for you. But, if you’re looking for
traditional steel bull bar, with six-speed camera.
a cheaper HiLux variant with a whole heap
manual gearbox (the auto adds to cost), of legwork already done in terms of practi-
which is a premium over the HiLux SR What’s the interior and practicality like? cal accessories then the Rugged is the much
Double-Cab Pick-Up on which it’s based. The interior is one of the areas where
there are a handful of differences between better buy.
Source: Internet

The Largest 7 seater 4x4 In Uganda


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Mercedes Benz GLS Driving you into the Future

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Feb. 01 - 07 2019 45
Nshuti Mbabazi: The girl
who covers the greats
`If the music is good, I fall in love and do a cover for it’
By Agnes E Nantaba played the guitar. But it is South

N
African singer-writer and guitarist
shuti Sarah Mbabazi has Bulelwa Mkutukana - best known
become famous for doing by her stage name Zahara, who
cover versions of songs inspired her to play. Back then she
by some of Uganda’s top did not own a guitar but she got
musicians. Her Facebook videos one in 2016.
have become a sensation. She has “I didn’t know what to do with
covered Elly Wamala, Mowzey it or which chord to start with,”
Radio, Juliana Kanyomozi, Bobi she says.
wine and Irene Ntale among So she took on to self-training
others. Her talent is evident in and watching video clips of lessons
how show is able to switch style on YouTube. Initially, she had
and rendition to suit the artistic to read through the chords to
attributes of the greats. She also produce a perfect cover. Today, she
takes it a note hire by strumming can play the guitar without having
a guitar during performance of the to first look at the chords.
popular tunes. She took the decision to do
Her breakthrough cover was covers at the beginning of 2017
‘Nga Bwewakolanga’ tune by and says right from her first post
Elly Wamala. The feedback was of songs like `Silent Night’ and
overwhelming and some of her `Amazing grace’, her clips have
fans pointed her to doing her own received progressive reviews on
music. YouTube and Facebook.
She says, “The feeling was “The reactions are good and
different and being the pioneer pushed me to do more with
of live covers with my voice and improvements,” says Nshuti, “I am
guitar, I was inspired to do more”. made to understand that there is
Two years later, Nshuti is the something that people love to
popular cover gal on social media keep hearing from me.” She also
platforms. finds inspiration in the work
To Nshuti, the choice of a song is of other women.
a feeling that pushes her to grasp Nshuti is social
the lyrics within a onetime play. worker but in
She says, “If the music is good, I December 2018, she
fall in love and do a cover for it”. decided to pursue
Nshuti has done several covers music as a career.
for songs like `Tambula Nange’ by “Music needs
Mowzey Radio (RIP), `Situka’ and time,” she says, “I feel
`Tuliyambala Engule’ by Bobi Wine like I can do something
and `Halleluyah’. good and unique.”
Although she has broken through Her mission is to release
recently, Nshuti has a long connection her own music soon.
to music, having been to it an early She believes as the local
age of five by her mother who was a music industry progresses,
member of the choir at the Adventist more professional people, and
Centre in Makerere, Kampala. They live performances are the
lived in the adjacent Wandegeya future.
suburb. Nshuti has three siblings “Live music is the real
although she insists on identifying music and every musician
with her larger family beyond the should stand this test.”
nuclei.
As an adult, she says, she
admired Ugandan guitarists like
Aziz Azion and Irene Ntale who

46 Feb. 01 - 07 2019
Q&A

Nshuti Mbabazi’s Liteside


Any three things that we I have managed to What is the quality you should at least afford a

I
don’t know about you? inspire many people most like in a man? meal a day.
am a loving person, through my covers and Being real.
reserved but I love it’s a blessing that I am What is your favorite
people a great deal. so proud of. What or who is the occupation?
It is a character that greatest love of your I want to be an
I picked from my late What is your current life? entrepreneur alongside
father. I also believe that state of mind? My mother is music.
I am an honest person. I am very happy. everything.
What do you most value
What is your idea of What do you consider When and where were in your friends?
perfect happiness? the most overrated you happiest? Honesty, openness,
It’s all about good virtue? In 2017 when I bought and loyalty.
music. In music lies my Socially, people waste my first guitar, my
greatest happiness. a lot of time on others. birthday of 2018 was a Who are your favorite
If people could focus surprise that I eventually writers?
What is your greatest on building their own fell in love with although I read anything that
fear? capacity than being I don’t like to be can add value to me.
I fear to be a failure. nosy in other people’s surprised.
That explains why when business, this world Who is your hero of
I choose to take on could really be a better Which talent would you fiction?
something, I can even place for us all. most like to have? Angelina Jolie; she is
forego sleep. I would love to learn a very flexible character
What does being more about other music who can put her mind
What is the trait powerful mean to you? instruments to make my and hands to anything
you most deplore in Knowledge of God music richer and more around acting and it
yourself? because from Him, we unique. turns out perfect.
Sometimes I am too get everything including
reserved and silent for wisdom, understanding, If you could change one Which historical figure
a long time something influence and wealth. thing about yourself, do you most identify
doesn’t go well with There is no power away what would it be? with?
some people including from God. I prefer to keep the Elly Wamala; apart
my fans. Some consider same. from being a good
it as pride and yet it’s On what occasion do musician, he was very
just a character. It is you lie? What do you consider humble. He never let
something that I would I try to keep away your greatest fame get over his head. I
like to change a little. from telling lies and even achievement? would love to keep like
when I do, I endeavor to I have met so many him.
What is the trait you correct with the truth. people from different
most deplore in others? walks of life and it’s all What is your greatest
Lying and dishonesty. What do you most because of the music regret?
dislike about your covers. I don’t regret the past.
Which living person do appearance?
you most admire? I love everything about Where would you most How would you like to
I admire my mother; I me because I believe like to live? die?
have come to realise that that God created me Uganda has good and In my sleep but the
she loves selflessly and purposefully. hospitable people. most important thing
sets a good example to should be at a time when
me and to the world. Which living person do What is your most everyone can turn and
you most despise? treasured possession? say, ‘Nshuti did her
What is your greatest I don’t despise people My guitar is something best’.
extravagance? because there is no special that I treasure.
I love to look good so reason for me to do so. What is your motto?
everything good take Despising also consumes What do you regard I have to do it.
a little bit more of my too much time and as the lowest depth of
money. energy. misery?
Being very poor
What is the greatest What is the quality you deprives people of joy
thing you have ever most like in a woman? and the ability to reason
done? Being real. effectively. Everyone

Feb. 01 - 07 2019 47
Global comment
By Edmund S. Phelps
Three revolutions economics needs
The underlying causes of current crises point to a need
to reshape how economics is taught and practiced

T
he West is in crisis – and so is phenomenon overlooked by economists. As they reached a critical mass, these
economics. Rates of return on Overestimation by workers of wage rates values produced indigenous innovation
investment are meager. Wages – and outside their towns brings inflated wages throughout the labor force. The
incomes generally – are stagnating and thus abnormally high unemployment; phenomenon of grassroots innovation by
for most people. Job satisfaction is down, underestimation brings bargain pay levels virtually all sorts of people working in all
especially among the young, and more and thus abnormally low unemployment. sorts of industries was first perceived by the
working-age people are unwilling or unable When workers lose their jobs in, say, American historian Walt Rostow in 1952
to participate in the labour force. Many in Appalachia they have little idea – no well- and described vividly and voluminously by
France decided to give President Emmanuel based estimate – of what their wage would the British historian Paul Johnson in 1983.
Macron a try and now are protesting his be outside their world and how long it I discuss its origins in my 2013 book Mass
policies. Many Americans decided to might take to find a job; so they might Flourishing.
give Donald Trump a try, and have been remain unemployed for months or even So it was by no means clear that
similarly disappointed. And many in Britain years. There is a deficiency of information, not the Schumpeterian thesis would be
looked to Brexit to improve their lives. “asymmetric information.” incorporated into economic theory. But
Yet economists have been largely mute More than that, the volume sees every when MIT’s Robert Solow introduced
on the underlying causes of this crisis and actor in the economy as being thrown back his growth model, it became standard
what, if anything, can be done to restore on whatever sense he or she can make of it, to suppose that the “rate of technical
economic vigour. It is safe to say that the as Pinter depicted, and to do the best they progress,” as he called it, was exogenous
causes are not well understood. And they can, as Voltaire urged. But theorists at the to the economy. So the idea that people
will not be understood until economists University of Chicago created a mechanical – even ordinary people working in all
finally engage in the task of reshaping location model in which unemployment is industries – possess the imagination to
how economics is taught and practiced. merely frictional and thus transitory – the conceive of new goods and new methods
In particular, the profession needs three so-called island model. As a result, the was not considered. And it would have
revolutions that it still resists. Information Revolution has not yet been been dismissed had it been mooted. The
The first concerns the continuing neglect absorbed. Dynamism Revolution in economic theory
of imperfect knowledge. In the interwar The last great challenge is the utter was put on hold.
years, Frank Knight and John Maynard omission from economic theory of economic With the great slowdown and a decline
Keynes launched a radical addition to dynamism. While economists have come of job satisfaction, however, there now
economic theory. Knight’s book Risk, to recognise that the West has suffered a appears to be a chance to introduce
Uncertainty, and Profit (1921), and Keynes’s massive slowdown, most of them offer dynamism into economic modeling. And
thinking behind his General Theory of no explanation for it. Others, wedded to doing so is imperative. The importance
Employment, Interest, and Money (1936) Schumpeter’s early thesis on innovation of understanding the newly stagnant
argue that there is no basis – and could be in his classic 1911 book `The Theory of economies has sparked an effort to
no basis – for models that treat decision- Economic Development’, infer that the incorporate imagination and creativity
makers as having correct models with torrent of discoveries by scientists and into macroeconomic models. I have been
which to make decisions. Knight injected explorers has shrunk to a trickle in recent arguing for a decade or more that we cannot
an uncertain future, Keynes added the times. Schumpeter’s theory operated on understand the symptoms observed in the
absence of coordination. But subsequent the explicit premise that the mass of people Western nations until we have formulated
generations of economic theorists generally in the economy lack inventiveness. (He and tested explicit hypotheses about the
disregarded this breakthrough. To this famously remarked that he never met a sources, or origins, of dynamism.
day, despite some important work on businessman with any originality.) That theoretical advance will give us hope
formalising Knight’s and Keynes’s insights This was an extraordinary premise. One of explaining not only the slow growth
(most notably by Roman Frydman and his can argue that the West as we know it – the of total factor productivity, but also the
colleagues), uncertainty – real uncertainty, modern world, we might say – began with decline of job satisfaction. America cannot
not known variances – is not normally the great scholar Pico della Mirandola, be America again, France cannot be France
incorporated into our economic models. who argued that all mankind possesses again, and Britain cannot be Britain again
(An influential calculation by Robert J. creativity. And the concerns of many other until their peoples are once again engaged
Barro and Jason Furman, for example, made thinkers – the ambitiousness of Cellini, in thinking of better ways to do things and
predictions of business investment resulting the individualism of Luther, the vitalism excited at embarking on their voyages into
from Trump’s corporate profits tax cut of Cervantes, and the personal growth of the unknown.
without bringing in Knightian uncertainty.) Montaigne – stirred people to use their
The Uncertainty Revolution still has not creativity. Later, Hume stressed the need for
succeeded. imagination, and Kierkegaard emphasized This commentary was adapted from a speech
Second, there is still a neglect of imperfect acceptance of the unknown. Nineteenth- given at Paris Dauphine University on January
information. In what has come to be known century philosophers such as William 15, 2019.
as the “Phelps volume,” Microeconomic James, Friedrich Nietzsche, and Henri Copyright: Project Syndicate, 2019.
Foundations of Employment and Bergson embraced uncertainty and relished
Inflation Theory, we brought to light a the new.

48 Feb. 01 - 07 2019
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