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News analysis Health Business

Oil money: big Is chicken healthier Inside URA’s proposed


decisions needed than beef? customs taxes

Issue No. 576 June. 14 - 20 2019 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

Museveni
locks out oil
investors
It’s Total disaster

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June. 14 - 20 2019 1
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Issue No. 576 June. 14 - 20 2019

News analysis Business Health Arts Motoring

Cover story
Besigye gives opposition pain
But does his defiance hurt help FDC or IPOD?

5 The Week
30 Comments
Student killed in Kabale school clashes
The US economy’s dirty
secret: Temporary euphoria
as weakness abroad lifts
9 The Last Word
spirits at home amidst
Museveni’s state of nation speech: Trump-era spite and malice
Why, in spite of our continued
poverty, there is good reason to
32 Health
celebrate our gains as we plan ahead
Is chicken healthier
14 Analysis than beef?
Oil money: big decisions needed:
But Museveni, Total boss talk tough

35 Arts & Culture


27 Business
Kigali photo
Inside URA’s proposed customs taxes: fest: Rwanda gets
Local consumers and businesses – not the contemporary art festival
exporting countries – will pay the price

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

PUBLISHER: Independent Publications Limited, Plot 82/84, Kanjokya Street, P. O. Box 3304, Kampala, Uganda
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2 June. 14 - 20 2019
inbox

“Forceful relocation is another option that


will have to be considered by government.
I will take it to Cabinet and see whether
we can use minimum force to ensure they
are taken to the new location.”Hilary Onek,
Minister for Relief and Disaster Preparedness

Matia Kasaija, Minister of finance flags off Kiira EVS car at City Square during
budget awareness week.
Allen Kajina
(planting), UNRA
executive director
said they have
planned to “For you to access school services, you
plant over one
million trees in must provide an immunisation card as
all major roads a requirement without fail. If you don’t
Country wide in have one, we should be informed and we
addressing the
environmental will come and immunise you.”Diana Atwine,
factors that affect Permanent Secretary, Minister of Health
the survival
rate in extreme
environmental
conditions.  THE
INDEPENDENT/
ALFRED OCHWO

Museveni at
Kasanje War
Memorial
Grounds
in Wakiso
district on
Sunday 9, “If you cannot help your people because
in Horner you are in opposition that is rubbish, you
of Uganda’s
heroes are useless. I am telling that you are only
building a disruption.”President Yoweri
Museveni during his State of the Nation Address

Residents of Acres of land needed to Expected domestic


1000 Lyantonde who face
eviction by gov’t
30000 resettle 120,000 displaced
people in Bududa
Shs20trn revenue in
FY2019/2020

June. 14 - 20 2019 3
week
Kadaga warns
government
agencies on bribery
Speaker of Parliament
Rebecca Kadaga issued
a warning to Ministries,
Departments and Agencies
during (MDAs) to stop brib-
ing MPs for committee work
saying that the practice was
eroding the credibility of
parliament. Speaking before
the President’s the State
of the Nation Address at
Student killed in Kabale school clashes Serena Conference Centre
in Kampala, Kadaga vowed
Rogers Bakashaba, a Kigezi iron bars in a fight that has Kigezi is yet to be known. Police to take action against MPs
High School student was shocked residents, teachers and has deployed at both schools who receive such bribes
killed when his school got educationists in Kabale and to prevent further attacks as disguised as facilitation. She
into a fight with Nyabikoni the western region. Bakashaba investigations into the matter added that the role of facil-
secondary school in Kabale was the lone victim in this continue. Kigezi is currently itating MPs is performed
district. The schools have a primitive confrontation that operating without a substantive by the Parliamentary Com-
years’ long rivalry. It all began left scores of students injured head teacher following the mission which she heads.
when a group of boys from who were rushed to Kabale transfer of Stephen Mugume to “Accounting officers doing
Kigezi escaped from school regional referral hospital in Kichwamba secondary school this kind of thing should be
armed with knives, machetes, critical condition. Anti-riot police in Kamwenge district. Robert reported and the conduct
clubs and sticks and invaded quelled the skirmish by firing in Katebarirwe, the current head will be treated as corrup-
a boys hostel at Nyabikoni in the air. By press time, about 31 teacher of Nyaruhanga high tion,” she said. The Address
Kanyakiriro village in central students from Kigezi high school school in Ikumba sub-county delivered by President
division in Kabale municipality. were arrested and locked up at in Rubanda district declined to Museveni was the opening
The students of Nyabikoni hit Kabale central police station. take up the appointment. of the 4th session of the tenth
back using stones, clubs and The cause of the attack by parliament.

Engineers scoff at FDC, Ogenga Latigo clash over Pan African Parliament seat
proposed new cities During the launch of now they want him recalled.
the Alliance for National Ogenga however says it is
Government’s plan to create new cities Transformation (ANT) two only parliament and not
in Mbarara, Gulu, Arua, Jinja and Hoima weeks ago, Prof. Ogenga FDC which can recall him.
does not make the grade, the Engineers Latigo had the honour FDC has already lashed out
Board has advised. This will instead create of introducing Mugisha at Muntu for targeting his
new slums which will be without modern Muntu, the founder of former party for recruitment
urban planning according to the engineers’ the party to the audience. of members. Meanwhile oth-
body. Micheal Odong, the chairperson of Ogenga said he was er sources in the party say
the Engineer’s Registration Board, made ambushed for the act but the professor was recalled
the remarks at the 24th annual technology he was still heartened by it. in August 2018 and appar-
conference at Hotel Africana. He advised Now it looks like this single ently does not represent the
government against employing incompetent act could have got him into party anymore. Felix Okot
cadres to head technical offices and become trouble with his party, FDC. Ogong, James Kakooza, Jac-
supervisors of technocrats. Citing KCCA, Sources in FDC say the par- which is based in South queline Amongin and Anifa
Odong said it will be ill-advised to appoint ty wants to recall him from Africa. FDC leaders were Kawooya served in the Par-
a non-engineering executive director to take his posting as a member of not happy with his close liament alongside Ogenga in
over the city management, which requires a the Pan African Parliament association with Muntu and the just ending term.
technical person with knowledge in physics,
chemistry, mathematics and administra-
tion. “They have come up with new cities. URA in Shs300bn surplus
Who has seen their designed master plans?
Were they made by religious leaders? Who Uganda Revenue Author- was optimism URA would the financial year with a
will design the sewerage system, their road ity (URA) has registered a hit its targets although it surplus of Shs349.3b, which
network? The cities need planning, did they revenue surplus, collecting had not collected about 10 meant that it had cut its
consult us?” he asked. He advised fellow more than Shs300b above its per cent (Shs1.6 trillion) of collection target to about
engineers to make intervention whenever Shs16.3 trillion target for the the expected revenue. URA Shs7.2 trillion.
government is going astray. 2018/19 financial year. There opened the first quarter of

4 June. 14 - 20 2019
week
Landslides kill six in Bududa Corruption rocks UHRC,
Gaming Regulatory Body
A total of 15 officials employed by
Uganda Human Rights Commission
(UHRC), Uganda Lotteries and Gaming
Regulatory Body and the Equal
Opportunities Commission are under
investigations over money laundering,
abuse of office, false accounting,
embezzlement and causing financial
loss. The officials were arrested by the
State House Anti-Corruption Unit and
have been interrogated by the Criminal
Investigations and Intelligence
Department (CIID). Reports say that
a secretary of the commission and
director were arrested and released on
police bond. Investigations on some
of the cases have been concluded and
The unending rains of gardens in 27 villages. The ty killing an estimated 40 files forwarded to the Director of the
June are causing disrup- Office of the Prime Minister people in eight villages. Public Prosecutions. Med Kaggwa,
tions across the country revealed that a 73-year old There have been attempts the chairman of UHRC is yet to issue
with severe flooding in woman and three children to resettle those displaced
a statement. UHRC officials under
Kampala and Mukono. Six died in Bugobero and by the recurring landlsides
probe are Patrick Mabiiho Nyakana
people were killed early this Bunamwamba parishes in with government providing
(Secretary), Wilfred Asiimwe Muganga,
month after a severe storm Buwaali sub-county. The houses to families. However
Acting director for regional services),
in Kampala. But the eastern victims include a seven year the government now needs
Deo Wamala (Accountant), Rebecca
district of Bududa, prone old girl who was swept an additional 30,000 acres
to landslides has now lost away at Bunango parish in of land to resettle a total of Nassuna (Head of Jinja regional
six people. The latest land- Nalwanga sub-county. Last 120,000 people. office)), Willy Agirembabazi (Head
slide hit five sub-counties year in October, landslides Kampala regional office), and Rebecca
washing away houses and struck Bukalasi sub-coun- Tino (Head Hoima regional office). All
the three are Principal Human Rights
Officers. For the Equal Opportunities
Christianity should be one community- Archbishop Odama Commission, officers are being
questioned for misappropriating
As Mary was giving birth gongo Martyrs’ Shrine. Christ only left one Christian Shs1billion. These are Lawrence
to Jesus, she gave birth to GANAL is an acronym for faith and therefore the split Mujuni Mpitsi (Secretary to the
the followers of Jesus as one Gulu Archdiocese, Nebbi, into different religious sects Commission), Harriet Byanjire (Senior
community. Don’t say only Arua and Lira, which are all is a shame. “We are gathered Accountant), James Mugisha (Senior
Catholic, it’s Christianity. under the Gulu Ecclesiastical here to celebrate the pouring Planner), and auditor John Kisembo
“Christianity is supposed Province. Odama has said of the Holy Spirit and all and Dennis Nyangweso, a human
to be one because they all the split of Christianity into those who believe in Jesus resource officer. Meanwhile the CEO of
belong to Christ,” Archbish- different smaller groups is a Christ. Many Christians the Gaming Board Edgar Agaba, CFO
op of Gulu Archdiocese John betrayal of Jesus Christ and have abandoned the teach- Patrick Kazoora and two compliance
Baptist Odama said during God, saying they create divi- ings of the Christ and resort- officers face interdiction for an
the celebration of the annual sions within Christianity. ed to their own.” unaccounted sum of Shs950m.
GANAL Mass at Namu- He told the gathering that

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June. 14 - 20 2019 5
week
Military deepens
Sudan crisis
The Sudanese army which threw
former President Gen. Omar el- Bashir
under the bus to end his 30 year rule
has deepened the country’s political
crisis with a vicious crackdown on
protestors. The security forces continue
to use tear gas and live ammunition
to disperse protesters setting up
barricades in Khartoum. Dozens are
already reported dead. Campaigners
have called for ongoing civil
Prime Minister of the Bunyoro Kitara Kingdom, Andrew Byakutaaga (L) shaking hands with disobedience to make it as difficult
Edgar Kihumuro, the brand manager for Pilsner Lager after the press conference. as possible for the military to govern
Sudan.Workers in banks, airports and
Pilsner Lager contributes Shs50m to Bunyoro fete other facilties were arrested ahead of
the strike against the military rule, the
Pilsner Lager contributed the kingdom’s palace in ensure that the Empango, main protest group said. Protestors
Shs50 million contribution Hoima town. The Empango and cultural celebrations have asked the Transitional Military
towards the 25th coronation celebration commemorates like it, get the full support Council (TMC) to step aside to avert
anniversary celebrations of the beating of the royal and recognition they very any further loss of life in Sudan.
the Omukama of Bunyoro drum (Empango), much deserve,” said Edgar Groups of young men have set up
Solomon Gafabusa Iguru which was the first ritual Kihumuro, the Brand barricades in roads as part of the civil
I which took place on performed by the Omukama Manager for Pilsner Lager. disobedience campaign. Most offices
June 11. This was during a upon being crowned on the Empango are anniversary and businesses remain shut. Protest
handover event to the Prime June 11, 1994. “25 years is celebrations done every year leaders have asked people to stay at
Minister of the Bunyoro a significant milestone and and this time it was special home. They say that demonstrations
Kitara Kingdom, Owek. as the King’s beer, Pilsner because the king took took are no longer possible because of the
Andrew Byakutaaga at Lager finds it fitting to stock of his 25-year reign. violent crackdown by the military.

6 June. 14 - 20 2019
Humour Did you know?
Your brain changes when
you give up on religion

Minister of state for finance David Bahati says Uganda’s debt which has reached $11.4b is under control.
A growing body of research
suggests a loss of faith in higher
powers may have very tangible
effects on our brains, the way they
work, and our physical health.
Losing faith in a higher power
can be one of the most profound
and formative experiences in your
life. Depending on how strong
that faith was originally, or how
central it was to your sense of self
or community, the drift to atheism
can shatter the convictions and
social systems that give your life
meaning and security.
Neurologically, the faithful
and atheists have the same
architecture, and process
information in very similar ways,
explains University of Utah
neuroscientist Jeff Anderson. But
Professor Barnabas Nawangwe declared Makerere University free from strikes and hooligans. number of studies have suggested
that faith in a higher power are
associated with less activity in
areas of the brain associated with
analytic thought and more in
areas associated with intuitive,
empathic thought. Coaxing people
into using more of their analytic
brain and thought processes
seems to lead to decreased belief
in a higher power, and vice versa.
(Damage to analytic parts of
the brain also seems linked to a
boosted sense of mysticism.)
“It’s not clear if being more or
less critical-analytic is a better or
worse thing,” cautions Andrew
Newberg, a Thomas Jefferson
University Hospital neuroscientist
and pioneer in neurotheology, the
study of the links between religious
experiences and the brain.
On June 6 President Yoweri Museveni gave the State of the Nation. Address.

June. 14 - 20 2019
News analysis Health Business
Smoke of secrecy over Type 2 diabetes and Industrial growth vs
medical marijuana high- intensity exercise environmental protection

Issue No. 575 June. 07 - 13 2019


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

Museveni’s election money


Is raiding the budget better than printing it?

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www.independent.co.ug

Letters are Museveni tells off the Opposition


Refer to: “Museveni tells would be off the street and prosperity; unless of course
welcome ! off the Opposition” (The we would appreciate that the opposition leaders use
The Editor welcomes short and
Independent online June 07). they can handle the bigger it to blackmail government
concise letters from our esteemed Tell them Mr. President. You one; government. The Holy to giving them money not
readers on topical issues. Please have actually read my mind. Bible also says that be faith- earned for and later cry over
send them to: If only opposition leaders ful with the little and you corruption in government.
The Editor, The Independent had model farms or firms to will be made custodian of
Publications Ltd, employ just 10 jobless Ugan- the many. This is not time Charles Muhigirwa
P.O Box 3304,
Plot 82/84 Kanjokya St, dans each, more than 45,000 for politicking but national
Kamwokya.
Kampala,Uganda.

Take Uganda, Uganda and Rwanda’s


Email: editor@independent.co.ug
Rwanda to EAC slippery slope
Nice move on street children Refer to: “Uganda and Rwanda’s slippery
The Ministry of Gender, Labour and slope: Why the current situation between
Social Development’s new multi-pronged Refer to: “Uganda and Rwanda’s Kampala and Kigali needs to be deescalated
approach to permanently get children off slippery slope: Why the current situation before it leads to disaster” (The Independent
Uganda’s streets is a very good idea. The between Kampala and Kigali needs May 31). It gets more bizarre when you state
Shs3.4 billion that has been invested into the to be deescalated before it leads to that the facts do not really matter. The con-
new operations by the Ministry is equally disaster” (The Independent May 31). flict has exposed the two leaders for exactly
good but money won’t help unless we deal Over the years, Uganda and Rwanda had what they stand for. Pawning the lives of
with corruption. These children are just everything to show other regional and their citizens into senseless and endless con-
trafficked from their areas of residence; Great Lakes states and far reaching East flicts for all the time they have been in pow-
meaning there are big people mastermind- African Community that they are the er. It is such an unfortunate stroke of bad
ing this business. First finding out these cause to believing that peace is possible luck to be a poor country that prides itself in
human traffickers will make it easier to at all levels. Now, with the two heads being a natural arbiter in this conflict prone
eradicate this vice. The Shs41,000 fine on of states at loggerheads, no one seems Great Lakes Region. Eventually you become
anyone caught giving street children food to understand that the protagonists in part of the problem-in the wider scheme of
and money is also a fair punishment. But we peace building and leaders with wealth of things. The Rwandese have a reason to be
are forgetting our feelings when we see these experience in internal conflicts can engage jittery. But for a war to erupt- far from it As
hungry children. This is where we all need in this mouse and cat game. Interestingly, patriotic citizens the death of the two people
to work a lot together and not let the gov- President Yoweri Museveni has been a should be highly condemned – the elites do
ernment act alone. The heart of parenthood little reserved and it appears he is more not appreciate the situation of the poor try-
is normal, but we should always consider of strategic rather than provocative. On ing to eke a living illicitly in a border area.
the outcomes of whatever actions we do. We the other hand, President Paul Kagame
seems to be so bothered by such silence Godfrey Kambere
should support government policy but the
police should place emphasis on the parents and doing all it takes to break the silence
of these children. In most cases they work of his counterparts.
Deservingly, the two leaders are widely
Banning churches,
with them or send them alone because, as
adults, they are expected to be working and known for their patriotic legacy in their mosques in schools
not begging. They should not dodge their countries. If there is war to be, then the
ugly truth shall be well understood and Refer to: “Education ministry bans con-
responsibility. struction of churches, mosques in public
Kevin Seguya Ugandans and Rwandans will be told the
truth hidden behind the two leaders. As schools” (The Independent Online June 10).
kelvinsegz@gmail.com For me the problem is not solved by this ban.
a Ugandan, I feel our territorial sovereign
integrity and freedom must be upheld Actually, the issue is about dialogue and
understanding the role of religious leader-
Museveni’s GDP figures and respected by all regional states and if
Kagame feels aggrieved, then he should ship in our education system. I sometimes
Refer to: “Uganda’s per capital income take it to the platform for which he don’t understand how our leaders reason.
up” (The Independent Online June 06). Are leads; the East African Community, for If our country is Godly; let’s not borrow
President Yoweri Museveni’s Gross Domes- redress. He should not take unfettered from secular countries where religion is not
tic Product (GDP) per capita figures correct- discretionary powers vested in his respected. In fact, Government should be
ed for inflation? For me, I would rather earn presidential immunity to kill Ugandans constructing these places of worship so that
$100 in 1986 than $200 in 2019. from their home soil. the boundaries are clear.

Paul Muwanga Adrhis Lamster Oyang Rev. Innocent Mark Nabimanya

8 June. 14 - 20 2019
The Last Word opinion

Museveni’s state of nation speech


By Andrew M. Mwenda
Why, in spite of our continued poverty, there is good
reason to celebrate our gains as we plan ahead

L
ast week, President Yoweri Museveni it is 11th globally, first in Africa. Without Thus, according to the latest IMF
gave his State of the Nation (SOTN) having to repeat Museveni’s speech, estimate, one dollar in Uganda has a
speech. He gave interesting facts the geographical context of Uganda in a purchasing power of $3.45 in America. So,
about Uganda’s economy, which troubled region makes this achievement if we take a basket of goods and services
many of our “intellectuals” deny. Between remarkable. that people buy, prices would be the same
1986 and 2015 (when I have reliable data), Historically, few countries have in Uganda and America if the exchange
Uganda’s economy grew at an annual sustained the GDP and per capita GDP rate were Shs1,100 to the US dollar. This
average rate of 6.92%. Given that population growth that Uganda has enjoyed over is, therefore, the “correct” exchange rate
growth has been 3.3% over the same period, 30 years. Only West Germany after that should inform our calculations.
per capita output has grown at an average World War Two did an average of 3.8% PPP is a more reliable estimate because
annual rate of 3.62%. This is an excellent in per capita income growth over 30 Ugandans spend their income in Uganda
performance by both contemporary and years. Uganda is beaten by the Asian and on things whose prices are really low.
historical standards. economies, which averaged 5.6% between Market exchange rates are volatile.
Some Ugandans have argued that this 1960 and 1990. But this is largely on For instance, about two months ago, the
rate of growth is below our country’s account of our exceptionally high rates of exchange rate of the shilling to the U.S.
potential. One economist has even population growth. If we had averaged dollar fell from Shs3,800 to Shs 3,500 i.e.
wondered why we should be celebrating 2% population growth rates as Asian by about 7%. That is big, but did it really
6.92% growth when that is considered nations did, our per capita growth would change much in the prices Ugandans
slow-down in China. But surely, should have been 5%. pay for most of the things they depend
every good runner be judged by the Yet in spite of her impressive on the live – food, transport, medicines,
standards of Usain Bolt? Should we performance, Uganda is still extremely haircuts, school fees etc.? Today, it has
consider Mo Salah a poor player because poor. With a per capita GDP of $724, we again appreciated to Shs3,780 without
he has not reached the heights of Messi are among the bottom poorest countries significantly impacting prices of most of
and Ronaldo? In any case, what is in in the world, 176th out of 187 countries in the goods and services that Ugandans
Uganda’s potential that would have made the International Monetary Fund (IMF) spent on. The advantage of PPP is that
our country perform better than China in rankings in nominal dollars. However, it is much more stable than market
economic growth rates? when measured using Purchasing Power exchange rates and deals with values as
Nearly all the rich countries of today Parity (PPP), which Museveni wrongly opposed to prices.
are rich not because they grew fast but called a “shortcut” during SOTN, our per As a caveat, I am aware that there are
because they grew slowly and steadily capita output is $2,500 and our rank is many weaknesses with the PPP method,
over a very long period of time, lasting 159th out of 187 countries. which I should not delve into because
generations. For instance, the USA has In fact, using nominal dollars to they will divert us unnecessarily. Suffice
one of the highest per capita GDP in the calculate a nation’s income is lazy. Just it to say that some economists give PPP
world. But its annual average rate growth imagine a person earning $1,000 in a margin of error to the tune of 5-10%
rate between 1900 and 2000 was only Kampala and another earning the same and sometimes more. Yet even with all
2%. Between 1913 and 2012 (a whole 100 amount in New York. On the face value its weaknesses, PPP is not a shortcut as
years), average annual GPD per capita of the dollar bills (which economists Museveni said. It is a much more realistic
growth of Europe was 1.6%. Ugandans call “nominal”), the two earn the same measurement than nominal dollars.
are asking their country to perform income. But when it comes to the basket To illustrate this point further, if
miracles. It is good for us to aspire to of goods and services the same dollars Uganda ended its absurd tax claims on oil
have per capita income growth of 10% can buy in Kampala and in New York, it companies, and let them move towards
over 100 years. But such aspiration in is different. the Final Investment Decision (FID), that
very unrealistic since no country has One way of expressing this is to say will ensure an influx of huge volumes of
ever performed such a feat. The lesson that the cost of living in Kampala is dollars into the country. This investment
is simple but fundamental: there are no lower than in New York i.e. most of the will be to the tune of US$12 to 15 billion.
shortcuts to development. things a person needs to live on (like Even with high import content, such
The best measure for Uganda is paying rent, buying food, hiring a maid investment can appreciate the value of
to look at its position in global and at home etc., renting a boda, eating in the shilling to $2,700 to the dollar. Hence
regional rankings; both historical and fancy restaurants, getting a haircut, even without changing anything on the
contemporary. Between 1986 and 2015, consulting a doctor, etc. are much cheaper ground, our per capita GPD in Uganda
Uganda was the 17th fastest growing in Kampala than in New York. When we would rise from the current $724 to $1,018
economy in the world, 4th in Africa. If we convert $1,000 at market exchange rates, a i.e. we would achieve the proverbial
exclude mineral rich countries from the Ugandan earning Shs3.8 million can buy “middle income status.”
sample (for the simple reason that they much more than his/her counterpart in
are enjoying God’s or nature’s bounty), New York. amwenda@independent.co.ug

June. 14 - 20 2019 9
COVER STORY

Museveni
locks
out oil
investors
It’s Total disaster

10 June. 14 - 20 2019
COVER STORY

President Museveni (C), Energy Minister Irene Muloni (R) Total SA’s Patrick Pouyanne (L) and other officials.   NET PHOTO

U
By Haggai Matsiko At the meeting, the oil executives wanted is over recoverable tax costs that the oil com-
Museveni to direct URA on what to do to panies are claiming, and Capital Gains Tax
ganda’s oil sector has be resolve a tax dispute. But Museveni report- (CGT) that the government wants.
thrown into another toss edly insisted the oil firms had to go and Initially, the CGT dispute was over a
up after President Yoweri resolve the issue with URA not him. At that US$167 million (Approx. Shs625 billion) bill
Museveni cancelled a highly point, one of the oil executives reportedly that the Uganda Revenue Authority (URA)
anticipated meeting on June bluntly told Museveni that, in that case, there slapped on Tullow for its sale announced in
05 between him and oil pro- would be no movement. January 2017 of US$ 900 worth of assets to
duction company executives; The Independent By no movement, the oil executive meant Total E&P and the Chinese oil firm CNOOC.
can exclusively report. the company would freeze its activities in Tullow had refused any of it insisting given
The meeting was to be a follow up of one Uganda. It appears this did not go well with the costs it had incurred, the cost didn’t
on April 29 that went badly as the oil execu- Museveni and the meeting reportedly ended arise—sparking a stalemate.
tives attempted to squeeze a breakthrough prematurely. But since Total and CNOOC want to
from Museveni but he left them empty At the centre of the disagreement between move on to the next stage; the Final Invest-
handed and, according to highly placed Museveni and the oil companies are several ment Decision (FID) into production with
sources, pushed hopes of Uganda’s first oil issues including; new regulations for mid- even bigger money at stake, they offered to
farther. stream activities that include processing, clear the US$82 million in dispute and got
Museveni’s cancellation sinks any hope storing, marketing, and transport the oil. Tullow to offer the remaining $ 85 million.
of early or easy resolution of disagreements. There are potentially lucrative deals in this However, they also offered tough condi-
According to insiders, it shows Museveni is sector, which the oil companies are anxious tions, which URA has refused to accept and
still seething from the outcome of the April to retain but the government insists it must it appears Museveni has now also rejected.
29 meeting. be a player. The other point of disagreement The June 05 was seen as an opportunity to

June. 14 - 20 2019 11
news analysis
push the past behind and move on. Securing a Fair Share of Ugandan Oil Reve- (EACOP). Total E&P is the main investor in
Museveni instead fired off a letter to Total nues: A Revenue Risk Assessment Focused on the pipeline.
E&P, the oil giant leading negotiations on TOTAL SA concluded that while Uganda Total E&P sees these new rules as regu-
the side of the oil companies, indicating that has already demonstrated a strong com- latory overreach partly because they grant
he rejected all their demands and, therefore, mitment to protect its revenue interests government more control on the costs of
there was no point of meeting. By presstime, during the exploration phase, mega risks midstream infrastructure, specifically, in
it wasn’t clear how the negotiations would lay ahead. Uganda won the Capital Gains the case of the French oil giant, the costs of
move forward. Tax dispute with Heritage, the stamp tax the pipeline.
President Museveni has remained over- dispute with TOTAL. It has also reviewed However, the Midstream Act empowers
ly cautious at every point in the journey Double Tax Agreements, and its Office of government to approve the pipeline tariff
towards Uganda becoming an oil produc- the Auditor General has done recovery cost (now set about $ 12.7 per barrel of oil) and
ing. This could be partly because of lessons audits. Museveni’s technocrat see this as a basis to
learned from elsewhere—where poor deci- But the money in the next phase, the have a say on the investment costs of the
sion making around oil extraction has hurt development phase, the study noted, will EACOP. Apart from this, experts say since
more than developed economies. He is also dwarf those of the exploration phase. government will own a stake in the pipe-
surrounded by technocrats who appear Oxfam, which is headed by Winnie line, it has fair ground to claim a say on the
keen to squeeze out the best deal for the Byanyima; a Ugandan, did not stop at com- costs as these have a bearing on the com-
country. missioning this study—it shared findings mercial viability of the project. That fight is
The hardball stance has strong backers; with Museveni and his army of technocrats still raging. Insiders say negotiations could
especially at the Petroleum Authority of at Finance, Energy and even URA, insiders soon resolve it.
Uganda (PAU), the Ministry of Energy, and say. A source who attended one such meet-
taxman, URA. ing at State House Entebbe said the Presi- Fight over taxes
But it frustrates oil companies which are dent couldn’t stop taking notes. But at another level, government and oil
equally looking for the best deal, and the “Many hundreds of millions of dollars companies are involved in hot exchange
Uganda National Oil Company (UNOC), are at stake,” an Oxfam study noted, add- over three tax issues.
who partly owing to their business ing that Uganda faces major revenue loss One, government insists Total E&P
approach, want the government to get the risks through treaty shopping, the mispric- cannot deduct tax costs worth over $600
oil cash now and invest it in other ventures ing of oil sales, the inflation of project costs million arising from the Tullow oil farmout
to make even more money. and potential profit shifting to the pipeline. deal. The URA and officials at the Energy
Indeed, when the UNOC boss, Jose-
phine Wapakabulo, announced early May
that she would quit the job within three
months, some cited frustrations surround-
ing delayed decision-making.
Pro-business experts warn that Uganda
is also discouraging future investors with
its decision gridlock. Indeed, the last time
the country put up fresh oil blocks for
exploration in 2016, it only attracted small
and in some cases dubious companies.
Some pessimists insist more exploration
blocks offered last year could equally suf-
fer.
Uganda first discovered commercially Josephine Wapakabulo CEO UNOC Ernerst Rubondo ED PAU Robert Kasande PS Energy
viable quantities of oil—now totaling 6.5
billion barrels with over one billion of these And it appears officials are keen to limit Ministry cite the tax laws to insist that
recoverable—in 2006 but delays in estab- these potential leaks. Tullow Oil had already booked the same
lishing the necessary laws and institutions, President Museveni firmly belongs in the as losses and as such these cannot be trans-
erecting the requisite infrastructure, dis- camp that plays hardball in negotiations. ferred.
agreement over route to production, and And the situation is not helped by the lead Apparently, according to the law,
major tax wrangles have delayed the start negotiator for the oil executives, Patrick these losses can only be inherited if the
of production for 13 years now. Pouyanne, the Total SA chief executive. buying company is buying shares. Total
The government’s failure to resolve Pouyanne has built his executive manage- and CNOOC are not buying shares—they
disputes quickly delays the FID by oil ment reputation around one issue; cutting are buying assets. The companies are also
companies. This in turn delays everything costs. insisting that they are incurring these costs
else—the oil pipeline through Tanzania, the Within Total, Pouyanne has built his and therefore, they should be treated as
refinery, and all the critical works on the oil career partly by cutting costs. tax losses the same way they were treated
fields. Since he took over in 2014, Pouyanne has under Tullow.
Last year, the hope was that the investors elevated the company’s financial perfor- Two, government insists the companies
would reach FID in the first quarter of this mance, partly through cost cutting. Given should pay income tax on first oil, meaning
year. But going by what is happening, it this, Pouyanne is not likely to be any softer immediately oil starts flowing. This stems
will take a miracle to reach FID this year. on any of these issues that rotate around from a 2017 amendment of Income Tax Act.
That is why Museveni’s cancelling this cru- costs of the oil projects. As a result of this amendment, government
cial meeting is a major setback. Total E&P, has already sued over order demands that oil companies pay income tax
a government order (statutory instrument) immediately oil starts flowing. Ordinarily,
Big money at stake seeking to control key decisions on mid- income taxes are imposed on profits, experts
A 2017 internal study commissioned by stream activities; including over the $ 3.55 say. According to Production Sharing Agree-
local office of the UK Charity, Oxfam, titled billion East African Crude Oil Pipeline ments (PSAs), oil companies are supposed to

12 June. 14 - 20 2019
news analysis

start paying such taxes after recovering their The trio control 100% of Uganda’s oil are reading into anything they can find to
costs, which according to some estimates fields currently under development; initially give a sense of the direction of things.
could be in like six years of steady oil pro- with 33% each for Tullow, CNOOC, and So when on June 6 while reading the state
duction. Total. of the nation address President Museveni
Experts say that companies in other sec- Tullow’s share was cut in January 2017 said the commencement of oil and gas pro-
tors are allowed a full deduction of their when it offered 21.57 % of its share for sale. duction and work on the oil pipeline and the
business costs in determining their income Initially, the deal was to sale to Total E&P; refinery “will be starting soon”, it was seen
tax liability. They argue that denying oil however, CNOOC insisted on its rights and as a hint of optimism.
companies full deduction of their annual they shared the Tullow offer 50/50. That left The President also said that work on
business expenses, as government seeks Tullow with 11% of the oil fields. three key oil roads-- Karugutu-Ntoroko and
to do, is contrary to normal principles of At this stage, however, another challenge Kabwoya-Buhuka (98km), Masindi-Biso;
income taxation. appeared. Since Tullow would stop operat- Hohwa-Nyarongwa-Kyarusheshe-Butore
Three, the government wants the pipe- ing its assets; the question arose around who and Kabale-Kiziramfumbi, and Lusali-
line holding company, the Special Purpose would operate these assets. ra-Nkonge (97km), would commence in the
Vehicle (SPV) for the pipeline, which will be This became contentious because, since new financial year.
registered in the UK to be a tax resident in Tullow first negotiated with it, Total E&P Stakes are high. Uganda’s ability to dig
Uganda, where it will have to pay taxes on had already integrated these assets into its itself out of the current debt hole and guar-
its operations. bigger project also known as Tilenga. antee future economic growth prospects
On top of this, government wants the But CNOOC again insisted on its rights have been pegged on activating oil invest-
same company to pay withholding tax (15 until President Museveni intervened and ments by the World Bank, International
%) on dividends before they are paid to the offered CNOOC another deal—an explora- Monitory Fund (IMF) and the officials at the
UK Company. The companies are saying tion block. That got them to surrender the Finance Ministry.
no. operatorship to Total E&P. Then the dispute Indeed in the state of the nation address,
This is all part of on-going negotiations for over a $ 167 million tax bill emerged. This President Museveni cited the commence-
the Host Government Agreements (HGA). too appeared resolved in January. ment of oil as part of the basis for the
The oil companies have to enter HGAs Insiders say both government and the oil country’s “very positive” economic growth
with both Uganda and Tanzania, where the companies were in the midst of concluding outlook.
biggest portion of the pipeline passes all the documentation on how this $ 82 million Despite economic growth picking up
way to the coast in Tanga. The agreements (exgratia pay) would be treated when yet from 4.5% in 2016 to 6% since last year, it can
spell out obligations of the two governments another huddle emerged. only be sustained and possibly improved
and the oil companies, amongst others. The oil companies want to inherit Tullow by the expected dividend from oil related
Insiders tell The independent that the mat- oil’s recoverable costs. Most importantly, investments; in infrastructure projects like
ters before court case could be resolved soon. this means that if Total and CNOOC start oil roads, pipelines, refinery, and other oil
But the tax issues could drag on because making income, they would not be charged processing facilities. This could gradu-
they are many and have long term impact. tax until all these costs are deducted. The ally bring in some estimated $ 20 billion
government has refused this position. (Approx. Shs75 trillion). While the oil
Details of main dispute Museveni brings optimism companies will be the spenders, they also
The main disagreements, which needs to stand to make a big chunk of their money
be resolved with the oil companies stems As the negotiation, posturing, and court in this phase as some of the work will be
from Total E&P and CNOOC’s purchase of cases rage, President Museveni and execu- subcontracted to their sister companies.
majority of Tullow’s stake in Uganda’s oil tives of oil companies are keeping their cards Continued delays, therefore, hurt both
fields. close to their chests. But industry observers these companies and the country.

June. 14 - 20 2019 13
NEWS ANALYSIS

Besigye
gives
opposition
pain
But does his defiance
hurt help FDC or IPOD?
By Agather Atuhaire

L
ydia Wanyoto knows how to kill boredom
and keep stress away. Dance. And she did
exactly that on May 20 at the Protea Hotel
in Entebbe when President Yoweri Musev-
eni kept delegates to the 2nd Summit of the Inter-
party Organisation for Dialogue (IPOD) waiting
for over 10 hours.
Wanyoto took to dancing when the summit
failed to start as scheduled at 9.30am. Most leaders
of political parties represented in parliament and
organisers from the IPOD secretariat arrived
promptly by 8am. They included the holder of the
rotational chair of the summit, Norbert Mao of the
Democratic Party (DP), Jimmy Akena of the Uganda
Peoples Congress (UPC), and Kibirige Mayanja;
from the Justice Forum party (JEEMA), and their
delegations. Wanyoto was on Museveni’s team.
But where the other delegates yawned, cursed,
and loafed around, Wanyoto danced.
Eventually, President Museveni arrived
past 6pm and the meeting started at
6.48pm. It ended at 11.30pm.
Museveni’s late coming has now
become another headache for IPOD.
The biggest opposition party, the
Forum for Democratic Change (FDC),
which is next in line to hold the rotational IPOD
Summit chair, is citing it as one of the reasons why
holding any dialogue with Museveni and NRM is
pointless. “What does it help us, for example, to go
and sit and wait for Museveni for hours?” says Patrick
Oboi Amuriat. Not that FDC would have been keen
to attend the next IPOD summit if Museveni arrived
promptly. The FDC had already boycotted the May
20 summit any way. And it had boycotted the first

14 June. 14 - 20 2019
NEWS ANALYSIS
IPOD Summit in November last year. In studies (GLISS). Tumushabe says the FDC is Amuriat, “If we already see that there is no
fact, Amuriat was trying to explain to The right to protest the violation of its rights by goodwill to implement what is agreed upon;
Independent why they keep boycotting the the NRM government. why should we continue wasting our time?
summits when he spoke against Museveni’s “I believe in dialogue but I fully For us as FDC we want to spend our time
late coming. understand the grievances of FDC,” he told more meaningfully.”
Amuriat says FDC party officials have The Independent, “What is important, to Tumushabe again agrees with Amuriat
decided to stop wasting their time since it is take the dialogue forward, is to address the that IPOD is not very helpful.
clear that there is no willingness on the part FDC’s grievances.” “I have reservations about IPOD too and
of NRM to remove the sticking issues. Like Amuriat, Tumushabe says if you want to understand how unhelpful
“We as FDC can’t go into a time wasting compliance with the law is not something to IPOD is, you need to remember that
venture,” Amuriat says, “We get into negotiate about. they failed to take their electoral reform
activities that are of direct benefit to us When IPOD was mooted in 2010 by proposals to Parliament yet they constitute
as a party and we don’t think there can the Netherlands Institute for Multiparty parliament,” he says.
be a meaningful dialogue in this kind of Democracy (NIMD), the idea was to But some analysts say FDC’s position is
environment. Our argument is why go for promote dialogue and reduce animosity a total misconception of IPOD’s mandate
dialogue when there are things that need to between Uganda’s political parties. The and objectives. They say FDC is demanding
be corrected first that the other party isn’t organisation had observed that the political negotiations when IPOD was set up as a
willing to correct.” party system in Uganda is characterised by platform for interparty dialogue. They cite
He adds: “You can imagine today we are mistrust and antagonism between the ruling the FDC’s insistence that there cannot be any
teargassed and tomorrow we are expected to National Resistance Movement (NRM) party meaningful dialogue if it excludes the issue
sit and discuss with our tormentor!” and the opposition parties. of transition of power from Museveni to
Besigye, who is the de facto leading But the persistent boycott of the IPOD another leader as insistence on negotiation.
ideologue of FDC, while appearing on Summit meetings by the biggest opposition Frank Rusa, IPOD’s Secretary General,
NTV’s `On the Spot Show’ on May 30 also political party, FDC, now threatens that shares this view.
said that IPOD is meaningless. agenda. “I am afraid these parties do not
The conditions the FDC officials, Besigye The summit meeting of May 20 was the understand the objectives of IPOD,” he
and Amuriat talk of include the curtailing second the FDC has shunned saying that told The Independent in an interview, “A
of their assemblies and arrest of its officials the conditions that prevented the party from dialogue is not a negotiation where some
among others. attending the first summit in December 2018 form of settlement is expected to be arrived
They point at how state security personnel had not changed. at. It is just a conversation to moot ideas on
have dragged FDC officials and Besigye, “My view is that IPOD is a non-starter,” how to change the political environment.”
who is its former president, out of several says Besigye, “It will never achieve what it He explained that the purpose of IPOD is
radio stations in various parts of the country; thought it would achieve.” to promote constructive engagement and to
including in Kabale, Jinja and Mubende. strengthen multipartism.
The security agents and NRM officials IPOD future uncertain “But it seems the FDC wants to have their
routinely switch off transmitters of radios The future of IPOD is possibly at stake. own agenda because I saw Besigye on TV
that dare host Besigye. Many radio stations While NIMD might not be shaken because talking about issues like who is in charge
are threatened with being switched off if it has programmes in 18 countries across of the negotiations and things like that,” he
they hosted Besigye or other FDC officials. Eastern Europe, the Arab World, South Asia, said.
This is sometimes followed by arrests of Latin America, and seven other African Tumushabe says Rusa’s view reinforces
Besigye and other FDC officials; including countries, IPOD needs FDC’s endorsement his view that IPOD is not really helpful.
Amuriat, in various parts of the country for credibility. He dismisses Rusa’s explanation of IPOD’s
where they have attempted to hold public For example, one of the major points reason to exist.
allies. agreed at the Entebbe Summit is that the “I find this argument lazy,” he says, “that
government of Uganda shall increase IPOD is a platform where people meet and
FDC will not `beg’ from Museveni funding to political parties and IPOD from have coffee and talk about themselves and
The question many people ask is why the current Shs10 billion to Shs35 billion in then what?”
FDC leaders do not use the IPOD Summit financial year 2019/2020. Such views from political analysts are
as an opportunity to sit across the table with Up to 15% of this money; about Shs5 weighing heavily on the future direction of
President Museveni and pin him face-to-face billion, will go to IPOD. The balance will IPOD.
on these issues? be shared by all parties in parliament. Each In its internal mid-term review done in
Amuriat says that would be begging party will get an equal share on one portion 2013, IPOD showed awareness that there
and the FDC does not need to beg for their and another portion will be distributed are feelings of frustration over its failure to
inherent rights from Museveni. According to based on numerical strength in parliament. change the broader political environment.
him, belonging to an opposition, holding a The leaders of opposition parties will also The report predicted that failure to get the
political rally, or airing political opinions are get a specific sum based on numerical political players to dialogue could make
inherent rights of citizens which Museveni strength in parliament. NIMD will also give IPOD lose momentum to carry on its
and NRM are trampling. parties about Shs1 billion. But IPOD does mission.
“We are not going to negotiate for our not look good to be handling this money The report noted: “It seems unlikely that
inherent rights. The NRM doesn’t give these when one of the biggest players discredits any of the political parties will leave the
rights to us as a favour. In any case, we have the IPOD process. forum, and thus bring an end to multi-party
written to IPOD in respect of our concerns Already, the other reason FDC gives for dialogue, but there does appear to be a
before the first summit meeting but no one shunning IPOD meetings is that they are not danger that it could lose momentum unless
has bothered to respond to our issues.” binding on any of the parties and, therefore, it can find ways of showing progress”.
Some people agree with the FDC position, are a complete waste of time. With FDC persistently boycotting the
among them Godber Tumushabe, the “Their resolutions lack the force of IPOD Summits, pressure is mounting on
respected political pundit who is the director law. We don’t want to waste our time on IPOD to do something to change that.
of an NGO; the Great Lakes Institute for things that will not be implemented,” says

June. 14 - 20 2019 15
NEWS ANALYSIS
Museveni using IPOD the aces. The party leaders in uncomfortable with partaking of supporting parties to develop
Analysts say IPOD is Entebbe, for example, resolved a meal one has participated fully organisational skills under
currently thriving on a think that “securing FDC attendance in preparing?” Mao said, “We the Political Party Capacity
lifeline thrown at it by President at IPOD must be a top priority call upon our colleagues who Strengthening Project (PPCSP)
Museveni because of his own ahead of the next Summit”. have consistently denounced started this year.
political agenda. Museveni That might not be easy IPOD Summit meetings simply Amuriat explains there are
has previously also shunned because FDC appears to because they feel that sitting some activities of IPOD that
IPOD meeting, preferring the have calculated their boycott in a meeting with President FDC values; for instance the
NRM secretary general to be carefully. The FDC officials Museveni waters down their trainings, and strengthening
the lead person. Now, however, attend attend other activities image as an opposition party to capacity of party staff.
Museveni needs the support of of IPOD; including the IPOD change their attitude.” “But once we see that a
other political party leaders to Council meetings and various Even Citizens Coalition for program doesn’t suit our needs,
collectively block the emergence training activities. The FDC’s Electoral Democracy (CCEDU) we don’t participate in it,” he
of powerful political players decision to shun IPOD summit coordinator Crispin Kaheru says.
outside of political parties; meetings has, therefore, left calls the non-attendance of FDC Strangely, the FDC
the so-called independents. many people confused. political posturing. supported the establishment
Museveni is battling the growth Rusa says FDC’s stance “Why does FDC lend of IPOD saying it would be
of the bloc of independent could be perceived as double credence to background IPOD an opportunity for opposition
MPs in parliament and the standards. processes and then posture party leaders to talk to Museveni
emergence of popular musician “The council of secretaries when it comes to summits?” he directly. But they appear to want
Bobi Wine (real name Robert general is where most of the asks. Kaheru says FDC’s absence him to behave as the chairman
Ssentamu Kyagulanyi), who is of NRM and not as President of
MP for Kyadondo East. Uganda on IPOD activities.
Bobi has already declared Many say this objective
intention to run against has so far not been achieved.
Museveni in the 2021 Tumushabe says Museveni
presidential election. Since Bobi comes to the summit as
Wine is not shackled by party President of Uganda. That is
rules, the restrictions imposed why he arrives hours late for the
by the current legal regime meeting and the others have to
which disadvantages opposition sit and wait for him.
political parties and favours But Tumushabe also sees
NRM appear not to completely Besigye as a problem.
affect him. He acts on personal “There is the internal
whims, without known governance structure in FDC;
organisational backing, and is where Besigye still wields
loose cannon. Yet Bobi Wine, influence and his views on
together with Besigye and FDC dialogue are clear; he doesn’t
(L-R) Norbert Mao, Kibirige Mayanja, President Museveni and Jimmy Akena
generally appear to be setting at the IPOD Summit in Entebbe on May 20.   COURTESY PHOTO trust Museveni as a person,” he
the political agenda. says, “So I think the FDC has
For example, independent business happens and in the from IPOD has the overall effect to align its decisions with those
candidates will now be council FDC has been very well of benefiting Museveni and of Besigye and his people’s
required to resign from any represented at this level and the NRM. government.”
political party 12 months prior decisions taken to the summit “Of course NRM is going Rusa meanwhile is confident
to general elections, and they had the input of FDC,” he says. into IPOD with purely vested the misunderstandings will be
will be required to go through Rusa also says FDC’s stance interests; to finish off the resolved.
the tough task of collecting is causing conflict with other opposition, to obtain an extra “The missing of FDC in
signatures of endorsers from parties. lease of life and to galvanise these meetings does not
their electoral areas while “I think the challenge FDC is parties against independents, spell doom for IPOD,” he
candidates backed by parties are facing is the political pressure their particular target being Bobi told The Independent, “It is
exempted. that they might be seen as a Wine.” just a challenge and it is not
The push for the repeal or at sellout if they talk to Museveni,” But some analysts say insurmountable. So I don’t share
least review the Public Order he says. although FDC officials do not the general sentiment that this
Management Act (POMA) That could be indirect want to sit at the same table is the end of IPOD but I don’t
which is sometimes interpreted reference to FDC president, with President Museveni, they downplay it either.”
to give the police discretionary Amuriat, because Besigye who attend other IPOD activities FDC is supposed to be the
powers to deny opposition is the most outspoken against because FDC wants to enjoy the next chair of the summit as
parties, especially Bobi Wine, meeting with Museveni, is not benefits of participating in other the position is rotational but
Besigye, and FDC their right to party president and, therefore, IPOD activities. IPOD gives Amuriat has stood his ground.
assemble also remained top of cannot be in the IPOD Summit. both financial and logistical “We are going to press for
the agenda. Rusa is right; however, about support to the parties in terms better terms of engagement
Reforms of this law have been the FDC decision is pitting FDC of institution building and before we participate in these
discussed at the two summit against other opposition parties. conflict resolution. In any case, meetings. We will not assume
meetings and regulations agreed At the May 20 summit meeting, NIMD in Uganda works rough the chairmanship of the
but it remains to be seen if they DP’s Nobert Mao called FDC IPOD works in two ways; by summit before our issues are
will be implemented. out for what he called “ playing facilitating dialogue between addressed,” he says.
Despite all the tough talking, politics of pretense”. the parties represented in
the FDC appears to be holding “Why would one be parliament, and secondly by

16 June. 14 - 20 2019
NEWS ANALYSIS

Janet Museveni Amelia Kyabadde Irene Muloni Janat Balunzi Mukwaya Mary Karooro

Women in power
Why cabinet matters more than parliament
By Melinda Adams & John Scherpereel the International Parliamentary Union’s data system.

H
on women’s legislative representation in In spite of this, women have had a
ow do we know whether women African countries over that period. relatively strong presence in the Ghanaian
are achieving equitable levels of In aggregate, we found that the trends cabinet. There are numerous reasons for this.
political representation? For many for legislators and cabinet members were Ghana’s constitution allows the president
years, scholars have focused on relatively similar. Women’s legislative to put together cabinets from up to 49% of
women’s representation in legislatures. representation grew from a continent-wide members who are not MPs. In addition,
But in many African states power is in fact average of 7.2% in 1979 to 18% in 2009. the country’s repeated international
concentrated in the executive branch. Women’s cabinet representation rose from commitments to gender equality appear to
In most African countries heads of state 3.5% to 18.7% in 2009. have influenced the appointment of women
and cabinet ministers enjoy significant But the aggregated data masked cabinet ministers.
discretion over resource distribution important country-level variation. Ghana’s autonomous women’s movement
and policy agendas. This means that it’s For each year from 1979 and 2009, we has used these commitments to pressure
important to pay close attention to who compiled two “African top 10” lists. The presidents to include women on their
holds executive posts when trying to first list identified the 10 countries with the executive teams.
work out the role of women in a particular highest percentages of women legislators.
country. The second list identified the 10 countries Significant policy implications
Ethiopia and Rwanda stand out head and with the highest shares of women cabinet Political scientists Amy Atchison and Ian
shoulders above other African countries. members. We found that just four countries Down have shown that women’s cabinet
Last year both appointed cabinets with 50% per year, on average, appeared on both lists. presence matters. The larger the share of
women representation. This meant that they The number of overlaps ranged from ministerial seats that women control, the
joined eight other states in the world that two to six across the 16 examined years. more likely a state is to promote policies that
have achieved at least 50% women in the But updated data continue to demonstrate improve women’s lives. Atchison and Down
cabinet. such misfits. In 2017, for example, just four found that this effect is stronger than the
Rwanda and Ethiopia have also received countries – Rwanda, South Africa, Uganda, effect of women’s share of legislative seats.
attention for their gains in women’s and Namibia – appeared on both lists. We expect it to be stronger still in
legislative representation. They rank The inclusion of Ethiopia, which increased cases where executive actors dominate
1st and 18th in the world for women’s women’s cabinet representation last year, legislatures. In addition, the symbolic effect
representation in national parliaments. would still mean that only half of the of observing a female defence minister
This makes it tempting to view women’s countries on the lists overlap. directing a “sea of generals” can be
legislative and cabinet representation as In strong executive countries where transformative.
linked or correlated. But the findings of a women’s legislative gains are not matched That’s why keeping keep a close eye on
paper we wrote with political economist by women’s cabinet gains, women MPs women’s inclusion in the executive branch is
Suraj Jacob suggest it’s best to avoid making are likely to encounter serious barriers. On important.
this link. We found that African countries the other hand, women cabinet members Recent data from across the continent
with high levels of women’s legislative in strong executive countries with male- show an overall dip in women’s cabinet
representation didn’t necessarily have high dominated parliaments may be able to effect representation. This suggests that while
levels of women’s cabinet representation. significant change. cabinet seats have substantial political
Our findings suggest that even in contexts upside, they may also be more tenuous
where pathways to women’s legislative The case of Ghana than legislative seats. Women’s legislative
representation are blocked, there can still Our study took a close look at trends in gains are often locked in via quotas, but
be breakthroughs in women’s cabinet Ghana. The country is a laggard in women’s women’s presence in cabinets is often tied
representation. Such breakthroughs can legislative representation. But it has achieved to the party in power and the leader of
influence policies. relatively high levels of women’s cabinet the government.
representation. We believe that women’s
The top 10 gains in parliament have been limited by Source: theconversation
Our study put together data on women’s a number of factors. These include the
cabinet representation in all African incremental change from military rule to
countries from 1979 to 2010. We also used democracy as well as the legislative electoral

June. 14 - 20 2019 17
NEWS ANALYSIS

A jovial Museveni during the State of the Nation Address

State of the Nation Address


An assessment of the President’s annual speech
By Ian Katusiime deal with job creation and present an da’s economy stands at Shs109trillion

A
impressive performance of the economy. ($29.5 billion) in FY 2018/2019 with per
lot has happened in the last The president spoke with the feeling that capita income at Shs3 million.
one year; the standoff between Ugandans do not appreciate his efforts. “Although this is below the level
Uganda and Rwanda has esca- “Those are the facts, you can go and required for the attainment of middle
lated into a full-blown crisis and hang,” Museveni said cheekily as he income status, the renewed impetus of
there are fears over what could happen belted out some of the economic statis- the economy and the large economic
anytime due to the tension at the com- tics from his speech to the audience at base being created will catapult the econ-
mon border. the Kampala Serena Hotel. omy to prosperity within a short period
Therefore many Ugandans expected Museveni, however, found time to in the future,” he said.
President Yoweri Museveni to hint about elaborate on subjects he has been vocal Ordinarily, the State of the Nation
the tiff the country has with its south- about lately like land fragmentation. He Address is the annual accountability
eastern neighbour as he delivered his lamented that land could be of no value exercise from the Head of State with
annual State of the Nation Address. He, if the activity is unchecked. “The Idea each year bringing different expectations
however, did not. of land fragmentation is equivalent to from the public. And despite the weari-
It was a long three hour speech of diz- disabling the land. Land that could pro- ness of some of the public to a president
zying statistical overload about econom- duce a lot for generations ago can now who has delivered it for 30 years, there is
ics, growth and projection. An analysis barely produce anything because it has still expectation from this speech.
of the speeches by Museveni in the last been fragmented into small pieces. We’re Last year was no different as many
few years shows a mix of monotony, now having land with disabilities,” he were disappointed by the manner in
distractions and lofty promises and with remarked. which Museveni glossed over the then
a strong focus on infrastructure and And what is Museveni’s annual state of the nation- one of fear caused by
growth of the economy. address without touting economic per- the high profile shootings and the inces-
For the average Ugandan and perhaps formance? The President stressed that sant kidnappings, the latter happening
those in the opposition, it was the same Uganda had grown its per capita income on a near daily basis.
story; a glossing over of events, a weak faster than most European countries in Museveni revealed that the Allied
hand on security and a fitful attempt to the last thirty years. Adding that Ugan- Defence Forces (ADF), a shadowy reb-

18 June. 14 - 20 2019
NEWS ANALYSIS
el group based in eastern Democratic received Shs39billion in total since the 2016 & 2017
Republic of Congo (DRC), was behind first capital injections started coming in Since his fifth term, President Musev-
the killings in Kampala in the last few in 2015. eni has been kicking off his annual
years. The statement, however, appeared At the end of his speech, Museveni address with one major topic like he did
ironic since Museveni said the ADF were touched on another of his pet projects; with the economy last year and focusing
in DRC being protected by the UN and the East African Federation which he on it this year. In 2016, after facing a
that if the ADF dared to re-enter Ugan- said he was happy to champion with the grueling election and capping 30 years
da, they would be defeated. blessing of the current EAC chairman, in power, Museveni started off with a
In 2018, Museveni laid emphasis on Rwandan President Paul Kagame. lecture on democracy telling off those
the wide reach of roads and electricity, It was surprising when Museveni agitating for political reforms in Uganda.
in typical Museveni fashion. “There is delved into political economic inte- After a highly disputed election with his
tarmac connecting all border points from gration given that Kagame closed the main challenger Dr Kizza Besigye in jail,
Koboko to Kisoro,” he stated. In 2018, Rwandan border to Uganda and it is Museveni said that he was not aware of
Museveni surprised the audience when now four months since. It was even more any society “more democratic” mention-
he named a new committee to fight cor- surprising because the EAC is marking ing that Uganda has special representation
ruption which to some looked like a dis- the milestone of twenty years later this for the women, for the youth, the disabled,
traction because of the tenuous security year in November with the EAC in such the workers and soldiers. He added that
situation in the country then. a fractured state. Uganda had MPs for vanishing tribes.
This year, he reveled in the revival of The reactions to the speech reflected In 2017, Museveni’s address focused
Uganda Airlines in addition to a total of a not so enthusiastic tone. Norbert Mao, on security concerns since a few months
4,900 factories employing an estimated president general of Democratic Party, before, AIGP Felix Kaweesi had been
700,000 people. commenting on the address joked that killed outside his home in addition to
Some of the issues he addressed, Museveni had put his 2018 speech in criminal gangs hacking residents of
however, like government focusing on a microwave and served it for his 2019 Greater Masaka after dropping leaflets in
ICT, services, industrialisation are car- edition. their homes. Lamenting on the absence
ried over from previous years. So is the Masaka Municipality MP Mathias of CCTV cameras in towns and high-
recapitalisation of Uganda Development Mpuuga told journalists that the speech ways, Museveni said it was difficult to
Bank (UDB), meant to give soft loans to was a “catalogue of selected lamenta- catch assassins by just depending on eye
businesspeople in agriculture and those tions.” This could be due to Museveni’s witnesses.
in small industries. Museveni said UDB persistent complaints about Uganda In the same speech, Museveni rapped
has so far received Shs272billion; includ- importing a lot of items. The President the police for poor intelligence gathering
ing Shs53billion which came in this also complained about the lethargy of and protection of criminals, citing the
financial year. government officials and in one particu- latter as a reason for the spike in crime.
When The Independent interviewed lar example, the low voltage of electricity
then UDB chairman, Samuel Sejaaka, which frustrated a new factory estab-
in 2017, he revealed that the bank had lished in Karamjoa sub-region.

June. 14 - 20 2019 19
NEWS ANALYSIS
By Andrew M. Mwenda different cities I visited. These

I
people were working for a pri-
n February and March of vate company that the Japanese
this year, I visited Japan ministry of foreign affairs (my
and travelled extensively hosts) had hired. I do not know
across that country’s major whether it is their culture or
cities – from Tokyo to Kyoto their training. However, each
and Hiroshima to Osaka, the time the car stopped, the driver
commercial capital of Japan. I would race at breakneck speed
was intrigued and impressed by from his seat in the front of the
the orderliness and cleanliness car to the opposite rear door
of the country. Many people where I sat to open for me.
argue that Kampala is dirty and I have never had the privilege
disorganised because it is large; of having my car door opened
with many people (1.5 million) for me. In any case I always
living in it. Osaka is a city of drive myself. But I also find it is
19 million people (counting its unnecessary to have someone
entire urban area) while Tokyo open the door of the car for me,
is 14 million people. The streets even when I am chauffeur driv-
of these cities remain spotless en. So in Japan, I tried consis-
clean. tently to open my own door to
The difference between Kam- discourage my chauffeurs from
pala and Tokyo is in each city’s doing it. But each time the driv-
sense of community and the er would increase his running
attitude of the public towards speed in order to reach the door
their cities. My friend Timothy before I could touch it. I found it
Kalyegira would argue that strange and while still in Tokyo,
Japanese are more dedicated asked him not to. He said it is
to their work than Ugandans. his work.
Therefore, city authorities and I had an escort, also working
ordinary city workers in Japan for a private company, which
work harder at ensuring clean had been hired by the ministry
cities than their counterparts of foreign affairs of Japan, to
in Kampala who are lazy and take me wherever I had official
uncommitted. engagements or private meet-
Yet every morning when ings. She was, like all Japanese,
Mwenda in traditional
I am walking or jogging on Japanese attire punctual and polite to a fault.
Kampala streets, as early as She was surprised I always kept
5am, I get intrigued by the time and told me a story of a

Inspired by
punctuality and dedication of Ugandan lady she once escort-
the men and women who clean ed. The lady never kept time
our city’s streets. I wonder what even once. This Ugandan (she
motivates these ordinary folks did not name her) would come

Japan
and their supervisors to wake 20 or even 30 minutes late, yet
up this early to work in horrible seemed not to recognise she had
conditions – dust, traffic, dirt done anything wrong.
etc. This is the more intriguing I spent nine days with this
because their effort is never lady, driving in the same car,
recognised. Instead it is abused Where people, values, having meals together, visiting
by us the residents of the city at museums, factories, theatres,
every twist and turn when we
continue to throw more garbage
mentalities, and habits create libraries, site seeing around
the different cities etc. She was
on the streets.
My many and long walks on
pure harmony very kind and patient with me,
and friendly – a great host so to
Kampala streets have taught me speak. Finally when I had to say
that the difference is not in effort Ugandans, especially those talities of their people. Short of bye to her, I behaved like a good
of the workers in Japan’s cities as frustrated with President Yoweri this, the cost of enforcing rules American (or human being)
opposed to the ones in Kampala. Museveni, would like to claim would be excessively severe and would do. I went to a shop and
Rather it is in the attitude of the that the city is dirty because of exceed the benefits sought. bought her a gift. In America,
general population in our two bad leadership. But what is the The Japanese are exceptional- tipping someone for a good
countries. People in Uganda contribution of each one of us to ly efficient and dedicated. This service is basic courtesy; in fact it
throw garbage wherever they ensuring cleanliness? A country is a shared value and mentality. is impolite not to do so. But my
please because they do not value that needs leaders to instruct They respect authority and obey Japanese escort was horrified
cleanliness in their city. And this people on how to behave for it superiors, something I see in (and I mean horrified) by this
could be because there is little to achieve its goals is doomed. Rwanda. People keep time and gesture and turned it down.
sense of community in Kampala. Leaders’ instructions are only race to achieve their goals as if She told me I did not need
This undermines the efforts of effective when they are in sync inspired by the gods. Take the to give her anything because
hardworking city workers. with the values, habits and men- example of my chauffeurs in the this was her job. Then a battle

20 June. 14 - 20 2019
NEWS ANALYSIS
ensued where I insisted that founded. To many Africans
in my culture this is a courtesy obsessed with Western democ-
I had to do while she insisted racy where political parties in
I didn’t have to do it. After a power change hands regularly,
few minutes of back and forth, Japan looks like the quintessen-
she realised I was determined tial one party dictatorship. The
to have her accept the gift and only difference of course is that
she relented. She opened the in Japan, prime ministers do not
gift and expressed such appre- last long, often they rule for two
ciation beyond whatever value or three years. Only Eisaku Sato
was in the gift. I promised to (1964-72) did eight years, and
return to visit Japan later this Abe has done more than six.
year in July and that I would Secondly, Japanese easily and
look for her so that we can meet quickly embraced and mastered
again. Western technology without
Throughout my stay in Japan abandoning their religion and
and having visited about seven culture. The country remains
cities I could not find an obese predominantly Buddhist and
person. Yet this is a rich coun- Mwenda and and his escort Shinto. This is different from
try with a per capita GDP of Uganda where Christianity
$39,000 ($44,000 by Purchasing and Islam actively fought and
Power Parity). There are many overwhelmed out traditional
countries in this income bracket, religions. Japan is also the only
but most especially the USA, country I have visited where
have high percentages of their hardly anyone speaks English.
people over weight. I searched I had to rely on interpreters for
online and found that only 3.6% most of the time. While most
of Japanese are obese. Indeed, Western liberal democracies
66.5% of Americans have a have increasingly become
Body Mass Index (BMI) above multicultural, Japan remained
25 (making them overweight) ethnically and culturally homo-
compared to 25% in Japan. geneous. Even in the face of a
Good diet makes Japanese declining population, I did not
look much young than their see much desire to admit many
age. For all the time I spent in foreigners into the country.
Japan, I hardly saw old people. Japan is similar to Uganda on
Most people I met in offices, cultural preservation yet differ-
restaurants, markets, streets, ent on openness to foreigners.
museums etc. looked young. Ugandans have embraced
This was contrary to my first Mwenda and and his driver Western education and religion,
experience when I first visited yet retained a lot of their cultures
Europe, the USA and Canada in the mid embraced many aspects of western culture (look at our marriage ceremonies that mix
1990s. Coming from a young country (the yet at the same time retained many aspects traditional marriage –kwanjula, gubaba,
median age in Uganda is 14) where seeing of their traditional systems. In this regard kweranga etc. – with church weddings).
elderly people is a rarity, I was intrigued Japanese are very much like Ugandans. For We have also retained our cuisines (at our
by the mass of old people in airports – in instance, Japanese eat their local cuisines yet weddings we mix Western and traditional
Brussels, Paris, London, Toronto, New York, they abandoned their traditional clothing cuisines into one package) and have also
Washington DC etc. I wondered what pos- (which I find elegant) for the Western suits, retained our languages. However, Uganda
sesses these elderly people to be traveling trousers and skirts and shirts and blouses. is more accepting of foreigners: Rwandans,
this much. Equally, the political system in Japan is Congolese, Ethiopians, Eritreans and South
With time I realised that these nations Western liberal democracy but I guess it is Sudanese all come and settle in our country
have large percentages of their people in old held together by specific Japanese traditional with little or no hostility.
age compared to Uganda. Therefore, the values and norms. Japan does not have term Japanese are exceptionally polite and treat
issue was not that old people in Uganda do limits; an obsession Africa borrowed from one another and even strangers with courte-
not “roam around”. They are too few to be the USA which its intellectual elites worship sy. I have not encountered a people as polite
seen, only 4% of our population is above 60 like God. However, the ruling party, the Lib- as the Japanese, perhaps South Koreans. The
years, 49% are below 14 years. Consequently, eral Democratic Party (LDP) of Japan, used common feature of Japanese and Koreans is
at every event little kids below 10 will out- to have term limits. Two years ago, however, the speed in doing things. You call a waitress
number the octogenarians by a big factor. Yet its current president, Shinzo Abe, amended in a restaurant and she literally comes run-
Japan, even with the highest population of the party constitution and removed term ning at full speed to address your concern. It
elderly citizens in the world (33% are above limits so that he can remain prime minister is rare for people to be polite and also quick.
60 years), does not look old. I was intrigued. longer. There was hardly a hue and cry that Yet Japanese (like Koreans) do things
I guess the trick is in Japanese diet, which he is power hungry. quickly and yet retain politeness. Is this a
is low on fat and high on protein. Being an More than that, the LDP has ruled Japan cause or consequence of their rapid devel-
island nation, Japanese eat largely fish and continuously since it’s founding in 1955. It opment? This is a subject I will address in
their cuisine has not suffered the introduc- has lost power – and only briefly – twice: my next article.
tion of oils and other fattening aspects. In 1993-94 and from 2009-2012. So it has ruled
fact Japanese are a contradiction: they have Japan for 59 of the 63 years since it was

June. 14 - 20 2019 21
NEWS ANALYSIS

Food safety in markets


Why it must be driven by consumers
By Arie Havelaar & Ashagrie Zewdu in processed meat products from South This is on course to become
Woldegiorgis Professor, University of Florida Africa, E. Coli in romaine lettuce in the even worse as income growth and
Ashagrie Zewdu Woldegiorgis Assistant U.S., Salmonella in eggs across Europe urbanisation in Africa are enabling
Professor, Addis Ababa University and Campylobacter in chicken liver better, more diverse diets. Ironically,

D
pâté in Australia. These are some of the these healthier foods – such as dairy,
irty food kills about 140 000 recent food safety crises worldwide, eggs, meat, fruits and vegetables – are
people every year, and leaves estimated to impact as many people as more likely to be contaminated.
91 million more suffering infectious diseases such as HIV/AIDS, Because the food system across
from diarrhoea, tapeworm, malaria and TB. most of Africa is largely informal and
hepatitis and even dysentery and But while deaths and illnesses from unregulated, pinpointing the source of
typhoid in Africa. unsafe food hit countries worldwide, food illness, critical to its eradication,
Many of the pathogens and foods the incidences of these illnesses and is challenging. It could be meat
at the centre of the crisis also strike lost lives are disproportionately high contaminated in an abattoir, listeria-
elsewhere around the world. Listeria in Africa. tainted food doled out from a food

22 June. 14 - 20 2019
NEWS ANALYSIS
system was completely overhauled to
A 2015 report win back trust.
And in South Africa, the company
offering the first- responsible for the Listeria-tainted

ever estimates
bologna that killed 200 people faces
class action lawsuits from the families
of the incidence, of the victims.
In Ethiopia, new research – jointly
mortality funded by the UK Government’s
Department for International
and disease Development and the Bill & Melinda

burden due to Gates Foundation – underway is


trying to determine how consumers’
31 foodborne relationship with food can be
transformed to improve food safety in
hazards informal markets for vegetables and
poultry. We’re focused in areas where
worldwide monitoring and regulation is difficult
marked a to achieve.
While previous efforts to weed out
turning point in bad food have focused on training
producers or regulators, this project
this thinking also seeks to harness the voice of
consumers.
Related studies in the country are
devising how to manage the health
food and regulates those who don’t risks of raw foods. Other factors being
deliver standard food products. looked into are foodborne disease
But Ethiopia, and countries like epidemiology, surveillance and control.
it, won’t conquer the complex food A central aim is to build the know-
safety challenges that come with how Ethiopian government officials,
informal food systems until everyday academics and consumers need to take
consumers are empowered to become on foodborne illnesses.
the first line of defence against unsafe These initiatives demonstrate that
food. policymakers, donors and researchers
In many countries across the are increasingly asking themselves how
globe, well-informed consumers — they can tackle food safety challenges
often with the help of lawyers and to ensure food is not just plentiful and
NGOs - have successfully used their nutritious, but also safe.
purchasing power to compel bad-
acting companies to fall in line with Turning point
food safety standards. A 2015 report offering the first-
African consumers could likewise ever estimates of the incidence,
become catalysts for better food. But mortality and disease burden due to 31
before this power can be unlocked foodborne hazards worldwide marked
cart or mold-infected grain baked into citizens need a crash course in food a turning point in this thinking.
bread. safety. Right now, this knowledge is Fuelling this momentum, the Food
Contaminated food will continue limited. This is certainly the case in and Agriculture Organisation of the
to be a public menace until countries Ethiopia where we are involved in United Nations, the World Bank and
implement systems ensuring the safety ongoing research. the African Union co-hosted two of
and quality of food throughout the The country’s consumption of raw the largest international gatherings on
food chain — from the farm to the foods illustrates the case. Raw beef is food safety this year, which took place
table. deeply embedded in Ethiopian food in Switzerland and Ethiopia.
culture. People are aware it could make Clearly, international and national
Limited knowledge them sick, yet they don’t know how actors are moving in the right
Ethiopia is among the first to ensure it’s safe — and they don’t direction, but more must be done
African countries to prioritise food want to give it up. Raw milk is also to maximise the role of consumers
safety. Deaths and illnesses from a beloved. But a study found that most — where they buy and eat the food,
range of food borne pathogens are households were unaware of milk- whether it’s in markets, food stalls or
commonplace. Adulteration is also borne diseases. at dining tables.
rampant. Producers of the beloved A bottom up approach that educates
national dish, injera, have even been Lessons from elsewhere and empowers consumers is the only
caught mixing sawdust with teff flour In the UK and elsewhere in Europe, way to ensure that the drive toward
for economic gain. consumer faith in beef collapsed after healthier, more sustainable diets
The Ministry of Health is developing an outbreak of Bovine Spongiform delivered through agriculture doesn’t
a functional food safety system that Encephalopathy. The result was that neglect the role of food safety in
incentivises companies to deliver safer the European Union’s food safety securing the health of millions.

June. 14 - 20 2019 23
Inside URA’s
customs taxes
Local consumers and
businesses – not the exporting
countries – will pay the price

T
By Isaac Khisa

he good news coming from


the Nakawa-based Uganda
Revenue Authority (URA) is
that local firms, will effective
July this year, be protected
from external competition as
government increases taxes on imported He cites countries such as the US, China 35% tax, up from 10%, a step URA says
products similar to those produced locally. and Japan. is intended to boost local production of
However, the concern with the new move However, Shinyekwa says URA should motorcycle tyres.
is that the taxes will be applied to goods have done a thorough analysis of the local Steel related products too, have not
coming in, and the local businesses are the demand viz-a-viz local production to ensure been spared. Flat rolled products of iron
ones that will be responsible for meeting the that there is no supply shortage that might or non-alloy steel will attract US$250 per
obligation and eventually pass them onto push up prices. metric ton or 25% whichever is higher for
consumers in form of higher prices. Local firms says the new development a year as tax. Soap and organic surface
URA executives said the step is in is welcome as it will boost local production active products including Dettol, blankets,
response to the amendments in the customs that have for a long time faced stiff furniture, mattresses, pictures, designs and
laws for the financial year 2019 /2020 that competition from imported products. photographs and toilet will also attract a tax
comes into force on July1. In a notice issued to the newsrooms of 35%, up from the current 25%.
As such, a section of economic experts recently, URA said it will increase taxes on a Critics say the move contravenes the East
told The Independent that the move will push number of products to protect the interest of African Common Market Protocol that
up the price of products and possibly affect local producers of similar products. allows free movement of goods and services
people’s lives. For instance, importers of ball point pens, within the region.
“The price (of these products) is likely to exercise books, and tooth brushes will be To make the situation worse, critics say, it
go up as manufacturers in the local market required to pay 60% as tax, up from the is coming at the time the African Continental
still experience high production costs,” Fred current 25%. This represents approximately Free Trade Area (AfCFTA) is expected to
Muhumuza, an economist and lecturer at 140% increase in tax. take shape starting July 07.
Makerere University told The Independent in Similarly, chicken, peanut butter, Critics also argue that increasing taxes on
an interview. processed tea, coffee, ginger, cooked imports could trigger retaliation, making
“….and given that producers will not be potatoes fresh or chilled, potato and other consumers pay high prices for the products
in position to respond quickly to meet the crisps, bread spreads including Nutella as as the local firms struggle to meet the
market demand given the shorter timelines well as onions, shallots and garlic, will see demand within the shortest available time.
there will still be imports that the consumers importers pay 60% tax, up from the current They cite the case with the US, in which
will pay at a high price.” 25%. consumers are the biggest losers in the
Muhumuza said the surge in prices could The same tax rate will apply to importers current US-China tariff feud. For instance,
force the poor population to abandon a of refined sunflower seed or safflower oil, a paper published by the London-based
number of various products which might chocolate and other food preparations Centre for Economic Policy Research (CEPR)
negatively affect their living standards. containing chocolate contents, refined shows that American consumers and firms
Isaac Shinyekwa, the head of Trade and cotton seed oil, butter and other fats and oils paid more than US$19.2bn and are still
Regional Integration Department at the derived from milk. counting since President Donald Trump
Makerere University-based Economic Policy On the other hand, toothpaste including imposed taxes on $283 billion worth of
Research Centre (EPRC), however, said the Colgate and other mouth wash will attract imported goods, including steel, washing
decision is welcome arguing that there is a tax of 35%, up from 25% and so will machines, and solar panels in 2018 from
no country in the world that has developed television sets with the same margin. China.
without protecting its local firms. Importers of motorcycle tyres will pay The study says the prices went up, as

24 June. 14 - 20 2019
business
expected, disrupting supply chains and Proposed taxes for the new financial year
budgets.Though the results were still
preliminary, the evidence suggested that Commodity/product Old customs tax New customs tax
Trump’s protection wasn’t working. Cooked Potatoes fresh or chilled, other than seed, Refined cottonseed 25% 60%
oil, refined Sun flower seed or safflower oil, Cocoa powder
The authors – Mary Amiti, assistant vice
president of New York’s Federal Reserve Honey, potato and other crisps, Onions,shallots, garlic,leeks...
etc,fresh or chilled
25% 60%
Bank, Princeton Professor Stephen
Granite, Marble, and Clay (ceramic) tiles 25% 35%
Redding, and Columbia professor David
Weinstein – said prices for the affected Tomato Paste and other Preserved tomatoes 25% 35%
goods responded quickly to the taxes, Ready to drink juices 25% 60%
increasing between 10% and 30%. Television sets Toys, Colgate 25 35%
The jump closely matched the tax
Processed Coffee/tea/ginger 25% 60%
levels, which suggests that buyers –
American consumers and importers Show polish-Kiwi 25% 35%

– absorbed the increase, not the foreign Semi Processed Edible Oils 10% 25%
sellers of those goods. Chicken 25% 60%
At the same time, US firms increased § Bovine animals
§ Meat of swine
prices for their own goods, given the § Meat of sheep
higher prices for their foreign competitors’ Peanut Butter/Bread Spreads-Nutella 25% 60%
products. Wigs, false beards, eyebrows and eyelashes - 35%
However, as prices increased, demand
Doors, windows and their frames and thresholds 25% 35%
for the taxed products fell by 25% –30% in
the total value of imported goods as firms Butter and other fats and oils derived from milk; dairy spreads 25% 60%

and consumers had less choice. Mixes and doughs for the preparation of bakers’ wares 25% 35%
The researchers calculate Americans to Tarpaulins 25% 35%
have paid more than US$12.3 billion to the Buses for transportation of more than 25 persons 10% 25%
US government in taxes, and lost US$6.9
New pneumatic tyres of rubber, of a kind used on motorcycles. 10% 35%
billion in income due to trade-war-related
market disruptions. Flat Rolled Products of Iron or non-alloy steel products of Iron or
Non-Alloy steel
- USD 200/MT

For that, the study says the tax revenue


Flat rolled products of iron or non-alloy steel - 25% or USD 250/MT
the US is collecting is not enough to cover
the losses to consumers and companies. Flat rolled products of iron or non-alloy steel 25% or USD 250/MT

More research released by economists Chewing gum 25% 35%


from the Federal Reserve Bank of Other sugar confectionery (sweets), Chocolates 25% 35%
New York, Columbia University and Biscuits, Tomato sauce, Mineral water 25% 60%
Princeton University found that the
Partly refined base oil 0 10%
burden of Trump’s tax fell entirely on
U.S. consumers and businesses that buy Lubricants in liquid form 25% 35%
imported products. Lubricating greases 25% 35%
By the end of last year, the study says Soap and organic surface active products for use as soap 25% 35%
companies were paying $3 billion a month
Cartons, boxes, cases, bags and other packing containers of paper 25% 35%
in higher tariffs and absorbing $1.4 billion
a month in higher costs. Toilet paper, Exercise books 25% 60%

The researchers noted “that US Trade advertising material, Pictures, designs and photographs 25% 35%
responded to reduced import competition Instructional charts and diagrams 25% 35%
by raising their prices.” Blankets 25% 35%
Similarly, US introduction of taxes on
Steel articles of chapters 72 and 73 comprising of; 25% or USD 350MT
other countries has also led to retaliation · Corrugated iron sheets (galvanized and preprinted)
from member states of the European · Pre painted coils
· Galvanized coils
Union (EU). Others include Mexico, · Hoop iron
· Twisted bars
Russia, and Turkey, who all began levying · Flat bars
· Mild steel plates
retaliatory taxes on U.S. exports.
Gideon Badagawa, the executive Furniture and parts thereof 25% 35%
director at the Private Sector Foundation Mattress supports and mattresses 25% 35%
of Uganda (PSFU) told New Vision that the Toothbrushes, Ball point pens 25% 60%
move is good as long as it does not work
Electric accumulators 25% 35%
at the expense of the consumers.
He said the move could either cause Wheat (Wheat grain) 35% and apply a duty
rate of 10% for one
scarcity or push prices up, leading to year
inflation. Iron or steel wool; pot scourers and scouring or polishing pads, EAC CET rate and
Going forward, Shinyekwa said the gloves and the like apply a duty rate of
35% for one year
country should also work on creating
Coated electrodes of base metal, for electric arc-welding EAC CET rate and
conditions that will lower operational apply a duty rate of
35% for one year
costs to boost competitiveness.This,
he said, would make the country’s Safety matches EAC CET rate and
apply a duty rate of
products compete favourably with the 25%
imported products. Odoriferous mixtures of a kind used as raw materials in the food or 0 10%
drink industries

June. 14 - 20 2019 25
business

The newly open Kingdom Mall Kampala

Sudhir’s Kingdom
Construction on Kingdom Kampala start-
ed off in 2006 after Saudi investor Prince
Alwaleed bin Talal leased 15 acres of prime
land in the center of Kampala from the gov-

Kampala Mall
ernment of Uganda for 99 years.
Alwaleed’s company, Kingdom Holding,
was supposed to build a five star hotel to be
opened in 2009. But because of the 2008/2009

The US$300 million property is already financial crisis, Kingdom Holding failed to
mobilise financing to complete the Hotel,
and in 2016, Ruparelia’s Crane Management
attracting top corporate clients Services acquired the property and restarted
construction work.
The project is a blend of light retail as well
By Julius Businge Mall and Crested Towers that houses Ugan- as 10 floors of office space offering 22,000m2

T
da’s largest bank, Stanbic. of let table space – 18,000metres square of
he recently opened Kingdom Kam- This comes as the latest Knight Frank’s office space and 4,000 metres square of retail
pala Mall is already attracting top Kampala Market Update for the first half as well as parking for up to 450 cars.
clients that consist of corporate com- of 2018 shows that there is limited vacant The building has 2-floors of retail space,
panies, civil society organisations Grade A space in the core central business altogether, a total of 47 units, linked by an
and government agencies and ministries, district and secondary office locations avail- elevator. The building has been fitted with
according to Prabhat Mishra, the General able on the market. a modern sprinkler fire suppression system
Manager at Crane Management Services The market update says, the market consisting of a 200,000-litre water tank and
Limited. expects the supply gap in Grade A office two fire pumps with a back-up generator.
Crane Management Services Limited space to narrow in the medium term given There is a separate holding water tank
is a subsidiary of the Ruparelia Group of the number of good quality developments with a capacity of 150,000 litres.
companies that offer property management in the pipeline.The report said the yields for The building is also equipped with six lifts
services. Grade A space were recorded at 9%-10% – four with a capacity of 13 passengers and
Speaking to The Independent in an inter- during the fast half of 2018, with the average two with a capacity of 20 passengers.
view on June.08, Mishra said they are net rent per square meter standing at $15- It also has three 500kva backup generators
impressed with the bookings so far and are $16 in the period under review. and has been fitted with 400 CCTVs for secu-
ready to offer first class service to tenants. Mishra said they are not worried about rity management.
Located along Nile Avenue in Kampala the competition from the surrounding Rajiv Ruparelia, the managing director
city, the Kingdom Towers is an additional facilities. “We have set our standards; the of Ruparelia Group, said the rent fees in
investment to Ruparelia Group of compa- building meets international standards and the Mall are affordable and determined by
nies. The Mall sits on a 14-acre piece of land rules,” he said. negotiations between the client and the man-
located on Nile Avenue, Yusuf Lule Road He added that the site has excellent agement.
and Dewinton Road, just to the North-East visibility and access which will be further He said the building has been designed
of Kampala Central Business District. improved by planned road upgrades. to create unmatched shopping and work-
The facilities at the Mall are expected to He added that they have laid fiber optic ing environments in line with the group’s
compliment the ones already existing nearby cables for MTN Uganda and Airtel to ease philosophy of satisfying the unmet need for
which include Garden City, Nakumat Oasis communication around the facility. affordable modern space.

26 June. 14 - 20 2019
business

Kasaija’s budget
transparency initiative
It aims at putting citizens at the centre
of its formulation, implementation
By Julius Businge significant role in financing the

T
country’s development,” Akol
he budget is no longer said.
interesting to us. We In another speech read for
no longer listen to it him by Junior Finance Minister,
because it does not give Evelyn Anite, Kasaija said that
information that we want as over 120 government ministries,
farmers. Many years ago, the departments and agencies and
minister would read the budget around 17 civil society organisa-
and inform us about the chang- tions showcased their products
es in the price of coffee and and services during the three
other commodities. Today the day exhibition event. That 2400
budget does not target majority people received the Yellow
of us people in the agriculture Fever Vaccine, 248 units of
sector.” blood were collected and 3000
These were the words of a litres of milk were distributed.
man seemingly in his late 50s Minister Kasaija speaking at the service exhibition week on June 05. He said that the national
hailing from Buwama in Mpigi budget month activities in gen-
District who took part in the after South Africa. for accountability from the gov- eral and the service excellence
budget service exhibition week Prime Minister, Ruhakana ernment in order to improve the activities have facilitated public
held at the Kololo Independence Rugunda said budget events are delivery of services. awareness and understanding
Grounds from June 5-7, ahead of critical for the people to know of how the national budget has
budget reading on June 13. their budget and participate Creating opportunities been spent by various ministries,
Matia Kasaija, the minister for in its formulation and perfor- Gideon Badagawa, the exec- departments and agencies.
Finance, Planning and Economic mance. utive director of the Private The activities have created
Development said gone are the He said the implementation Sector Foundation Uganda said and inspired inroads in public
days when the budget making of the budget has over the years the budget transparency initia- ownership of the national bud-
process was for only the Pres- been successful because of the tives are important for creating get and buy-in for government
ident, the Minister of Finance proper designing of government opportunities and strengthening programmes. There has also
and a few technocrats. programmes and good coor- governance. been improved collaboration
“We have now changed that; dination between government “The private sector has been between the different govern-
the budget making process is agencies and supporting part- deeply involved in the process ment agencies in demonstrat-
now transparent,” he said. ners. and we will continue to support ing accountability for public
Kasaija said the new initiative For instance, Rugunda said it,” he said. resources and there is increase in
is aimed at enhancing budget lit- the number of kilometers of Badagawa said most govern- public awareness about the key
eracy and citizens’ engagement tarmac roads increased from ment officials at local govern- government programmes and
in prioritization, budgeting and 3, 050 in 2017/2018 to 4,551 in ment level needed to interrogate how the public can get involved
oversight for poverty-reducing 2018/2019; electricity genera- the budget and understand it in demanding better services.
interventions. tion increased to around 1,200 because they are the core in ser- Kasaija said the public needs
It also intends to strengthen MW with the coming onboard vice delivery to the people. more sensitisation on govern-
budget transparency by dissem- of Isimba hydropower dam Doris Akol, the commissioner ment programmes; there is an
inating budget information and (183MW) and other mini-hy- general of the Uganda Revenue even greater demand for gov-
generating feedback from citi- dros. Authority, said the taxman is in ernment interventions in the
zens and thus enhance account- He also said tremendous support of budget transparen- everyday lives of Ugandans in
ability for improved public achievements have been record- cy initiatives because it would the areas of health and agricul-
service delivery. ed in the education, health, agri- fill gaps in revenue collection, ture.
It is partly due to these culture and other sectors. budget expenditure and overall Kasaija said that through the
initiatives that Uganda was Going forward, Kasaija said service delivery. exhibition week, government
recognised by the Open Budget budget service exhibition week She said the URA has invest- had been able to account to the
Survey of 2017 conducted by would be held annually target- ed heavily in automation of public and to obtain feedback
the Uganda Debt Network and ing different regions country- systems to easily facilitate their that will lead to an improvement
International Budget Partnership wide. engagement with the taxpayers. in the delivery of services.
(IBP) for having the second most He urged the members of the “We are now better placed to
transparent budget in Africa public to follow up and demand render services and playing a

June. 14 - 20 2019 27
business

So, we have an African free


trade agreement. Now what?
The devil lies in the complicated negotiations for implementation
By Yinka Adegoke

M
ay 30, 2019 was a notable
date in African economic
history as the day the
African Continental Free
Trade Area (AfCFTA) came into effect,
after which it comes to market on July
7.
In a nutshell, it means a single
market of goods and services for 1.2
billion people with an aggregate GDP
of over $2 trillion. UNCTAD, the UN’s
trade body, predicts reducing intra-
African tariffs under AfCFTA “could
bring $3.6 billion in welfare gains
to the continent through a boost in might not be, well, straightforward. diversified large economies, led by
production and cheaper goods.” The concern is they could instead add South Africa and Egypt, would benefit
One of the more stark economic complexity to existing agreements much more.
data points about Africa is just how across regional bodies like ECOWAS in One of the realities of implementing
little African countries trade with each West Africa or EAC in East Africa. an agreement like AfCFTA is that it
other—just 16% of total continental And while many of the trade requires not just the governments
trade in 2014. The UN Economic discussions are often about moving but crucially the input of African
Commission for Africa thinks AfCFTA goods around the continent it’s worth businesses and everyday Africans.
has the potential to raise intra-African noting exports of African services And not many institutions are asking
trade by 15% to 25%, or $50 billion to grew more than six times faster than them, so Kasi Insight, which carries out
$70 billion, by 2040. merchandise exports between 1998 consumer insight studies across some
Brookings’s analyst Landry Signé and 2015. Services could be expected of Africa’s larger economies, did just
estimates that if AfCFTA works as to grow even faster across borders as this with consumers.
intended, Africa will have a combined more African start-ups gain traction Among the key findings was that
consumer and business spending of offering everything from fintech many respondents were skeptical
$6.7 trillion in 2030. services to online education as they about what AfCFTA represented or
But Signé also notes the devil will be disrupt traditional sectors. as Kasi describes it, “a significant
in the detail of ongoing complicated It’s also worth remembering the indecisiveness.” 
negotiations for implementation. continent’s largest economy Nigeria— That said, it varied on a country
Among issues to be ironed out include alongside Eritrea and Benin—has yet spectrum, with respondents in Côte
understanding how “most favoured to sign up as the Buhari government d’Ivoire much more positive (85%)
nation” (MFN) deals get worked out figures out how to salve the concerns than South Africans (45%), who were
between all the countries given the of powerful labour unions and big the least positive.
near total reciprocity this deal would business. And while many believe But the survey also found
need. Africa’s largest oil producer could respondents weren’t so much skeptical
Another sticking point will be benefit, analysts believe more about AfCFTA specifically as they
the “rules of origin” issue which were about benefiting from
decides which products get the multi-country agreements overall
preferential tariffs depending on given past or current regional
its classification. “Is a blouse made agreements.
from Chinese silk, designed and That said, when the question
stitched in China, but packaged in was asked in the context of a
Kenya eligible to receive AfCFTA comparison with the benefits of
preferential tariff rates? What if it is European Union membership,
made of imported Chinese silk, but those who understood how the EU
stitched together in Kenya?” ask the works were much more positive
Brookings analysts. about the potential of AfCFTA.
But the more straightforward
concern about the negotiations for Adapted from Quartz Africa
AfCFTA implementation is that they

28 June. 14 - 20 2019
business
AVIATION TECH

Uganda Airlines selects Nairobi for maiden flights Kaspersky Lab


is also expected to ‘eat into’ the
RwandAir market.
to open regional
“Ready to fly with us on our
maiden flights? Well, pack your
office in Rwanda

G
bags Uganda; for we are head- lobal cybersecurity
ing to Nairobi,” said the airline
firm, Kaspersky
on its official tweeter account.
Lab, plans to open
The Kenya Civil Aviation
a regional office in
Authority (KCAA) director
Rwanda to support the rapid
general Gilbert Kibe, however,
growth of its business in East
told Shipping and Logistics that
Africa.

A
the agency has not received the
ir passengers are ex- The carrier said on its twitter request from Uganda Airlines, This follow a meeting
pected to enjoy lower account that it is making prepa- according to Kenya’s Business between the firm’s CEO,
fares as Uganda Air- rations to commence its first Daily. Eugene Kaspersky, and Rwan-
lines launches its oper- flight at the Entebbe-Nairobi Uganda Airlines acquired da’s President Paul Kagame,
ations in the region. The Ugan- route. two aircraft in April this year as at the Transform Africa Sum-
da’s national carrier announced The move will come as the it started plans of reviving its mit.
plans to commence the maiden biggest challenge for Kenya Air- national carrier to ply regional “Governments and enter-
flights to the Jomo Kenyatta In- ways and its subsidiary Jambojet routes before expanding to prises across Africa need
ternational Airport soon. that ply the route. The carrier Europe and other destinations. an integrated approach to
complex threat detection and
response as they fight cyber-
CSR criminals who have significant
financial resources and are
Kotido residents receive free health services constantly looking to exploit

A
any vulnerability,” Kaspersky
irtel Uganda camped hygiene, antenatal and postnatal “Having achieved network said.
in Kotido District for a checks, family planning services, leadership across Uganda, we The Kigali office will serve
two-day health camp screening for hypertension, dia- are committed to ensuring that the requirements of the
as part of its continued betes, breast, prostate and cer- Ugandans use this connectivity growing number of partners
efforts to boost socio-economic vical cancer, immunization and to empower themselves. One of and customers in the region.
development in communities health education with a focus on the biggest hindrances to this is Kaspersky Lab’s solutions and
across Uganda by ensuring ac- nutrition, safe water and disease lack of proper health care ser- services will be offered to all
cess to health information and prevention. vices and information,” she said. industries and for all kinds of
services. Airtel Uganda Corporate Tony Ajuma, an official from businesses in Rwanda and the
Held at Nakapelimoru Health Social Responsibility Manager, the Kotido district health office wider region.
center III, the health camp Charity R Bukenya, said the said many residents are still Currently, Kaspersky Lab
offered free health care services health camp is yet another spoke suffering from malaria, typhoid has operations in almost 200
such as dental and eye care, in Airtel’s major plan to improve and hepatitis B. countries and 35 representa-
blood donations, menstrual the lives of its subscribers. tive offices around the world.

FINANCE AVIATION

Stanbic contributes Kenya Airways CEO Mikosz quits

K
Shs50M to NSSF’s enya Airways, able in 2022, though
CEO, Sebastian this is dependent on
symposium Mikosz will step gaining government

S
down from the approval to become
tanbic Bank Uganda, troubled state airline five the operator of Nai-
Liberty Life Assurance months before the end of robi Airport.
Uganda Limited and his three-year contract. Kenya Association
STANLIB Uganda “I have made the deci- of Travel Agents
Limited made a significant sion to shorten my contract said they
contribution of Shs50 million term and I have decided to welcome the new
towards the NSSF Money Talk resign on personal grounds development. “We
symposium that took place on effective Dec. 31,” Mikosz need a CEO who
June. 10. said in an internal memo losses to Kshs6 billion shillings understands Kenya,
This was the first time sent to employees, without giv- in the year through March 2018 who is not losing touch with
NSSF held the Investment ing a reason. from a record Kshs 26.2 billion the market, who engages with
and Wealth management The decision by the for- shillings two years earlier. key stakeholders, who works
symposium aiming at mer CEO of Polish govern- Sub-Saharan Africa’s closely with travel agents,” a
equipping prospective retirees ment-owned carrier LOT comes third-biggest carrier by passen- leading travel agent in Nairobi
with financial literacy skills. after Kenya Airways reduced ger traffic has a plan to be profit- to ATCNews.

June. 14 - 20 2019 29
business

Stanbic’s PMI shows


improved business activities
By Julius Businge indeed support growth in the

T
private sector.”
he Stanbic headline Pur- In addition, the report says
chasing Managers Index that despite ongoing new order
(PMI) posted 57.3 for the growth, companies were able
month of May, up from to keep on top of workloads in
54.7 in April. May, as signaled by a further
Improving business condi- reduction in backlogs of work.
tions were seen across all five This was achieved in part due
sectors – agriculture, industry, to continued job creation, with
construction, wholesale nd some companies indicating they
retail and services. had specifically raised staffing
New business increased levels to make sure that projects
again in May, with panelists were completed on time.
linking this to improving cus- Benoni Okwenje, the Stanbic
tomer demand. Firms remained Bank fixed income manager
Airtel Uganda Public Relations Manager (R) together with the Hinds optimistic that output would said that overall, input costs
Feet Director Sandra Muhanuka (L) volunteer at the Airtel quarterly increase further over the com- rose in May. He said the higher
health camp. Airtel Uganda recently held its signature Airtel ing year, amid business expan-
Quarterly free health outreach at Nakapelimoru Village in Kotido purchase prices and staff costs
sion plans, investment and were also recorded.
District. More than 2,800 residents of Kotido District received advertising.
medical attention.   COURTESY PHOTO. This comes as the latest
Jibran Qureishi, the regional Uganda Bureau of Statistic’s
economist for East Africa at Consumer Price Index (CPI)
Stanbic Bank said private sector shows that short to medi-
activity remains solid. He said um-term conditions are expect-
despite higher input costs, the ed to remain positive with
rise in new orders has support- inflation confined within the
ed overall output. 3.0% - 5.0% range.
“Of course, once poor weath- The PMI is a composite
er conditions are behind us, index, calculated as a weight-
agricultural output could some- ed average of five individual
what recover in the second half sub-components – New Orders
of the year,” he said. (30%), Output (25%), Employ-
“This also may coincide with ment (20%), Suppliers’ Delivery
a rise in investment mainly in Times (15%) and Stocks of Pur-
the energy sector which will chases (10%).

Centenary Bank rewards customers with shopping vouchers


worth Shs 4 million in the ongoing Centenary Bank Visa
promotion.   COURTESY PHOTO

Weekly share price movement (June 10)


Security June 10 May 13 Movement
BATU 30,000 30000 00
BOBU 128 129 0.8
CENT 1,225 1,178 4.0
QCL 170 170 00
DFCU 670 700 4.2
EABL 7,593 7,944 4.4
EBL 1,474 1,553 5.0
JHL 14,666 15,229 3.6
KA 132 143 7.7
KCB 1,470 1,544 4.7
NIC 14 14 00
NMG 2,023 2,154 6.0
NVL 330 334 1.1
(L-R) MTN Uganda General Manager, Corporate Affairs, Enid Edroma, CEO
Wim Vanhelleputte handover a contribution to Bunyoro Kingdom 2nd SBU 29 30 3.3
Deputy PM, Apollo Rwamparo, and Minister for external Affairs, Phillip UCHM 18 12 50
Katahoire, towards the Bunyoro Kingdom 25th Empango celebrations UCL 15 16 6.25
slated for June 11. Dr. Solomon Gafabusa Iguru, the reigning Bunyoro King UMEME 300 300 00
ascended to the throne on June 11th 1994.  INDEPENDENT/ALFRED OCHWO. ALSI -- -- --

30 June. 14 - 20 2019
comment
By Todd G. Buchholz
The US economy’s dirty secret
Temporary euphoria as weakness abroad lifts
spirits at home amidst Trump-era spite and malice

T
here is a dirty little secret in ideological. Rather, global interest borrowing costs and new tax write-
economics today: the United rates are scraping the floor because offs, the U.S. economy added 215,000
States has benefited – and GDP growth outside the U.S. is so new machine manufacturing jobs in
continues to benefit – from sluggish. 2018. And foreign investors realise
the global slump. The U.S. economy Persistently low interest rates and that new equipment will make US
is humming along, even while weak inflation bring multiple benefits companies more competitive.
protesters in the United Kingdom to the U.S. economy. For starters, But surely, the textbooks insist, a
hurl milkshakes at Brexiteers, French American consumers, whose real hobbled global economy will squeeze
President Emmanuel Macron confronts (inflation-adjusted) wages are finally U.S. exports. That is true – especially
nihilist yellow-vested marchers, and increasing after decades of stagnation, when combined with China’s new
Chinese tech firms such as Huawei fear are seeing all sorts of bargains. When I tariffs on American goods and a strong
being frozen out of foreign markets. visited an Apple store a few days ago, dollar, which makes U.S. exports more
Last year, the U.S. economy grew by an employee at the repair counter told expensive internationally.
2.9%, while the eurozone expanded me that I could finance a new iPhone Still, exports make up only 12% of the
by just 1.8%, giving President Donald at 0% interest. Car dealers are offering US economy, and nearly one-third of
Trump even more confidence in his zero-interest financing, too. them go to Canada and Mexico, whose
confrontational style. But relatively Moreover, the U.S. stock market economies have been doing okay.
strong U.S. growth amid sluggishness has soared because yields on bank Moreover, many of the most valuable
elsewhere is not what economics certificates of deposit (CDs) look so U.S. exports are “must-have” items
textbooks would predict. Whatever puny. When I was a kid in the 1970s, (or oligopolistic goods made by only
happened to the tightly integrated my mother placed our family savings a few companies), such as Boeing jets,
world economy that the International in a bank and received not only a 6% Qualcomm chips, or Apple iPhones. It
Monetary Fund and the World Bank return, but also a blender. Today, a six- is hard even for dejected Frenchmen or
have been advocating – and more month bank CD might pay only one- angst-ridden Germans to do without
recently extolling – since World War II? third of a percentage point. And my these.
The U.S. economy is in a temporary mother can no longer expect a blender The buoyancy of the U.S. economy
but potent phase in which weakness or even a lollipop from the bank in worries policymakers in other countries.
abroad lifts spirits at home. But this return for parking her money there. They would prefer if the U.S. stumbled
economic euphoria has nothing to do Finally, low interest rates mean that along beside them and was forced to
with Trump-era spite and malice, and U.S. businesses can obtain nearly concoct cooperative ways of boosting
much to do with interest rates. free financing when they purchase global growth. Instead, Trump needles
Borrowing costs are currently lower equipment. As a result of low rather than wheedles for trade deals,
than at any time since the founding and happily pockets the benefits to the
of the U.S. Federal Reserve in 1913, US economy that result from doldrums
or in the UK’s case since the Bank of abroad.
England was established in 1694. The They would No one knows when Trump’s trade
ten-year US Treasury bond is yielding
about 2.123%, and in April, the prefer if the U.S. needling will stop, of course. But as long
as inflation remains a distant specter,
streaming service Netflix issued junk
bonds at a rate of just 5.4%.
stumbled along America’s economy will continue to
enjoy this unusual type of growth.
If a Rip Van Winkle economist were beside them
and was forced
to wake up today after a decades-long Todd G. Buchholz has served as
sleep and see only those numbers, he director of economic policy under
or she would assume that one-fifth
of Americans were unemployed and to concoct President George H.W. Bush and
as managing director of the Tiger
standing in lines outside soup kitchens.
Instead, the U.S. jobless rate is at its
cooperative hedge fund. He was awarded Harvard
University’s Allyn Young Teaching
lowest level since Neil Armstrong took ways of Prize in economics and is the author of

boosting global
his famous first step onto the Moon’s `New Ideas from Dead Economists’ and
surface 50 years ago. `The Price of Prosperity’.
The idea that the US wins in a global
slump might sound like the sardonic
growth Copyright: Project Syndicate, 2019.
musing of some unreconstructed
Marxist in the dingy corner of a
faculty lounge. But such a view is not

June. 14 - 20 2019 31
comment
By Ambrose Byamugisha Muhoozi
Jobs are critical for economic growth
With an unemployment rate below 5%, it is apparent that
Ugandans are working hard, but with low productivity

C
reating quality jobs is a challenge the labour force’s transition from a pre- a matching grant that provides capital and
for the Ugandan government, but dominant involvement in low productivity workstations, and also enables these entre-
implementing policies to ensure in- subsistence agriculture to increased involve- preneurs to raise their skills.
clusive growth will help the country ment in higher productivity manufacturing Ensuring that the labour force has the
reach middle income status. and services sector.” appropriate skills will increase productivity.
Agriculture is the core of the economy Uganda’s economy is recovering from Skills allow firms to operate at a higher level
and the primary source of employment. years of unstable economic growth and is of productivity and empower the labour
Therefore, creating better jobs on the farm expected to achieve a growth rate of 5% force to participate in higher productivity
and promoting agribusiness are critical to per annum. Instability in economic growth jobs. Providing foundation skills through
improving productivity. attributed to the lack of discipline in public high quality primary education and a higher
The budget should have focused on the expenditure has caused withdrawal of donor rate of transition to secondary education,
importance of jobs in the context of Ugan- aid from the national budget and delays in and encouraging the private sector to partic-
da’s economic growth. As it is for other the implementation of major investments ipate in upgrading of Uganda’s labor force
countries around the world, jobs are essen- projects. However, the economy is progres- are necessary.
tial for Uganda’s development because sively recovering; driven by renewed macro- Improving survival, growth and produc-
they determine the living standards of economic stability, export policies, increased tivity in the formal sector increases inno-
individuals and households, support eco- access to credit, and low inflation. vation. The formal sector, which is largely
nomic transformation, and promote social Like in other African countries, creating concentrated and urban-based, will be the
cohesion. quality jobs is a major policy challenge source of innovation and the driver for
While Uganda’s economy has grown for Uganda government. With an unem- shifting Ugandan workers from relatively
significantly over recent years and could ployment rate below 5%, it is apparent low-productivity activities to higher ones.
continue to do so into the future, presently that Ugandans are working hard, but too The large number of firms setting up in
a significant proportion of the country’s many of them are involved in low produc- Uganda suggests that there are no barriers
population are not benefiting optimally tivity formal and informal sector activities. to starting a business. Survival and moving
from this growth. Rather, the vast majority This hinders the structural transformation up the production value chain are key chal-
of Uganda’s labour force remains employed required to drive Uganda’s economic devel- lenges that need to be mitigated by man-
in low productivity activities. This is largely opment. The government needs to imple- aging infrastructure costs, improving access
because the most productive, rapidly ment proper policies and the creation of a to finance and enhancing appropriate labour
expanding economic sectors are often more greater number of productive employment skills through the education system, on the
capital intensive than labour-intensive and opportunities to ensure an inclusive growth job training and private sector interventions
employ only a small proportion of the work- that will enable Uganda to fulfill its aspira- tailored to specific skills for particular indus-
force. tion of becoming a stable, integrated middle tries.
In particular, the bulk of the population income country. Promoting a more efficient urbanisation
continues to work in the agricultural sector, Agriculture is the core of the economy process will support firm growth and job
often engaged in subsistence activities, and the primary source of employment, creation in urban areas. Firms concentrate
with only a small proportion of agricultural engaging 73% of the country’s labour force in urban areas because they value the
workers engaged in the cultivation of high- primarily in the rural areas. But, other forms cluster benefits of information sharing, pro-
value, commercialised crops. In the urban of employment are growing faster; espe- cess and product innovation and produce
areas, a significant proportion of the popu- cially in the urban areas where jobs are more amenities such as business services, finance,
lation works in the informal sector, which diversified. Exploiting agribusiness opportu- logistics, banking, advertising and legal
faces particular constraints that prevent it nities and improving farmers’ access to mar- services. The process can be made more
from achieving high levels of productivity, kets, credit and lower cost inputs, better land effective by reforming land policies and
including limited access to capital, limited policies such as expedited issuance of titles, institutions to a credible system for docu-
support and recognition by the authorities, extension of research and advisory services menting and valuing land. Urban transport
and limited access to workspaces and other will increase productivity and create better systems should be better reformed to ease
facilities. quality rural jobs. the movement of people and resources in
“With Uganda’s labor force growing above Although they are usually seen as a the urban areas and ensure a high level
four percent per annum, Uganda can add burden, farm jobs have the potential to drive of coordination with land use planning to
over 10 million potential workers into the job creation and revenue if operators in reduce urban congestion.
labour market by 2020, adding to the chal- this sector have access to capital, raise their
lenge of creating goods jobs and achieving technical and entrepreneurial skills and Ambrose Byamugisha Muhoozi is a students
equitable growth,” . “The challenge for have an enabling work environment. This support officer at Victoria University, Kampala
Ugandan policy makers will be to manage can be achieved through implementation of

32 June. 14 - 20 2019
Is chicken healthier than beef?
New research challenges the widespread belief that white meat, such as chicken,
is better for cholesterol levels than red meat, such as beef, pork, or lamb

A
By Agencies mass index of between 20–35 kilograms/ lipid and lipoprotein effects, do not provide
square meter — consumed the allocated evidence for choosing white over red meat
new study breaks some bad foods for 4 weeks. for reducing (cardiovascular disease) risk,”
news for meat eaters, as After the intervention, the researchers write the researchers.
researchers find that white measured low-density lipoprotein (LDL) Dr. Krauss and colleagues conclude, “the
meat is just as harmful to cho- cholesterol (“bad” cholesterol), levels of present study is the first to show that both
lesterol levels as red meat. apolipoprotein B, small and medium LDL categories of meat protein result in LDL
The paper counters the particles, as well as total and high-density concentrations that are higher than those
widespread belief that white meat is more lipoprotein (HDL) cholesterol (“good” cho- resulting from vegetable protein sources in
healthful than red. This belief relies on a vari- lesterol). otherwise comparable diets”.
ety of observational studies that have found
a link between red meat intake and a higher Red and white have ‘identical’ effects Health tips
risk of cardiovascular disease. The study found that abstaining from Cholesterol levels vary by age, weight,
However, the authors of the new research eating meat altogether lowered blood cho- and gender. Over time, a person’s body
argue that the connection between white lesterol much more than researchers had tends to produce more cholesterol, meaning
meat and cholesterol has not received previously believed. that all adults should check their cholesterol
enough attention in specialised literature. Consuming both red and white meat levels regularly, ideally about every four to
So, a team of researchers — spearheaded raised blood cholesterol levels more than six years.
by senior author Dr. Ronald Krauss, senior consuming equivalent levels of plant-based Cholesterol is measured in three catego-
scientist and director of Atherosclerosis proteins. “This was due primarily to increas- ries: total cholesterol, LDL, or ‘bad cholester-
Research at the Children’s Hospital Oakland es in large LDL particles,” note the authors. ol”, and HDL, or ‘good cholesterol”.
Research Institute in California — set out to The raised levels of cholesterol did not The struggle for most people is balancing
investigate this link in more detail. depend on whether the diets also had high these levels. While total and LDL cholesterol
Dr. Krauss and colleagues tested how levels of saturated fats. levels should be kept low, having more HDL
different meat intakes affected the levels of “When we planned this study, we expect- cholesterol can offer some protection against
lipids and lipoproteins that can cause fatty ed red meat to have a more adverse effect on a person developing heart-related illnesses
deposits to form on the arteries. They pub- blood cholesterol levels than white meat, but including heart attacks and strokes.
lished their findings in the American Journal we were surprised that this was not the case These risks only increase over time, espe-
of Clinical Nutrition. — their effects on cholesterol are identical cially for adults who are not taking action to
The researchers divided healthy men when saturated fat levels are equivalent,” reduce their cholesterol buildup. All adults
and women into two groups, according says Dr. Ronald Krauss. should stay active and maintain regular
to whether they regularly consumed high The senior author adds that non-meat exercise routines.
levels of saturated fatty acids or low levels of protein sources, such as vegetables, dairy, Generally, the earlier an adult starts living
saturated fatty acids. and pulses, have the most beneficial effect on a healthful lifestyle, the better for their cho-
Within these two arms of the study, the cholesterol levels. However, the authors also lesterol levels. Cholesterol levels build over
researchers randomly assigned the partic- note that the study did not include grass-fed time. A sudden change in lifestyle will help
ipants to a red meat group, a white meat beef, fish, or processed meats. eventually, but the older a person is, the less
group, and a nonmeat protein diet group. “The findings are in keeping with recom- impact they will see in cholesterol levels.
Within each group, the participants — mendations promoting diets with a high
who were 21–65 years old and had a body proportion of plant-based food but, based on

June. 14 - 20 2019 33
health
participated.
The results from Stage 1 show that the
shorter regimen is as good as the 20-month
regimen.
Nearly 80% of patients in the trial showed
a favourable outcome after two and a half
years of follow-up from entry into the trial.
The percentage was 79.8% in the 20-month
regimen. In the nine to 11-month regimen
the percentage was 78.8%.
Results in participants with HIV, although
not as good as in those who were HIV-nega-
tive, were very similar in the short and long
regimen.
The findings on side-effects were also
interesting. There were very similar rates of
severe side-effects during treatment and fol-
low-up between the two regimens. But there
were differences in the types of side-effects.
The most common side-effects were cardiac
conduction disorders, which increase the
risk of serious and potentially fatal arrhyth-
mias, in the nine to 11-month regimen. In the

Drug-resistant TB
20-month regimen the most common side
effects were metabolic disorders, particularly
hypokalemia.
A health economics data analysis is ongo-
ing and will assess potential cost savings to
A new study offers new hope patients and health systems when the nine
to 11-month regimen is compared to the
By Andrew Nunn & I.D. Rusen 11 months – is as effective for the treatment 20-month regimen.

T
of multidrug-resistant TB as the longer,
uberculosis (TB) is the leading cause 20-month treatment recommended by the Conclusions
of death in the world from a single WHO in 2011. The final results from the trial are encour-
infectious disease, causing more The STREAM trial presents robust evi- aging because they show that the nine to
deaths than HIV/AIDS. In 2017, 10 dence for the effectiveness and safety of the 11-month treatment regimen is comparable
million people developed TB disease global- nine to 11-month regimen when compared in efficacy and safety to the 20-month regi-
ly and an estimated 1.6 million died. to the much longer 20-month regimen. The men. This supports the use of a shorter reg-
One of the biggest blocks to beating the results are as good and the fact that the imen for patients with rifampicin-resistant
epidemic is the growing resistance to drugs regimen is shorter should make it much TB.
that have previously cured TB. more acceptable to patients. It is also likely The nine to 11-month regimen presents
The World Health Organisation (WHO) to result in cost saving to both patients and substantial advantages. It reduces treatment
has declared drug-resistant TB a global health services. times, may improve patient retention under
health crisis. Worldwide in 2017, an estimat- programmatic conditions, and reduces the
ed 558,000 people developed TB that was The trial number of pills patients have to take.
resistant to the most effective first-line drug The STREAM trial (Standardised However, the required ECG monitoring is
– rifampicin (RR-TB). Of these, 82% had Treatment Regimen of Anti-TB Drugs for an important consideration.
multidrug-resistant TB. Patients with MDR-TB) is the world’s first In its latest guidelines issued last year the
But treating drug-resistant TB is still hope- multi-country randomised phase III clinical WHO again highlighted the need to con-
lessly inefficient. The 20-month to 24-month trial to test the efficacy, safety and economic tinue to look for regimens that are not only
regimen used in many countries to treat peo- impact of shortened MDR-TB treatment shorter, but are also less toxic for the patient.
ple is costly and has significant side effects. regimens. The randomised nature of the The STREAM Stage 1 results suggest that
In addition, the length of the regimen makes trial means that patients were assigned to some progress is being made.
it hard for patients to adhere to, as well as for the long or short regimen in such a way as STREAM Stage 2 is currently evaluating
health systems to sustain. Globally, the regi- so as to avoid bias. Treatment allocation is an all-oral regimen that is potentially
men has an average treatment success rate of determined by chance not by the choice of a as effective and more tolerable than the
little more than 50% in real-world treatment physician. injectable-containing regimens currently
settings, although there is considerable varia- Phase III trials are designed to assess the used some countries. This, too, would be
tion from country to country. effectiveness and safety of a new interven- another major step forward in the battle
As a result researchers around the world tion in practice. against MDR-TB.
have been urgently exploring shorter, more Stage 1 of the trial was designed to assess
effective, and safer treatments for patients whether a nine to 11-month treatment regi- Andrew Nunn is Senior scientist, MRC
who have drug-resistant TB. men that demonstrated promising cure rates Clinical Trials Unit at UCL, UCL & I.D.
One of these efforts has begun to bear during a pilot programme in Bangladesh, Rusen is Adjunct Professor, Dalla Lana
fruit. Results from Stage 1 of a clinical trial is as effective as the longer regimen when School of Public Health , University of
have recently been published. The news is assessed in other settings under rigorous Toronto.
encouraging. The trial provides evidence control trial conditions. Seven sites in Viet-
that a shorter treatment regimen – of nine to nam, Mongolia, South Africa, and Ethiopia

34 June. 14 - 20 2019
ART | BOOKS | SOCIETY | TRAVEL | CULTURE

Kigali photo fest


Rwanda gets contemporary art festival

P
By Dominic Muwanguzi events and not through death. The notion (RIP) was the founder of the Lagos Centre
of keeping memories alive through pho- for Contemporary Art and acclaimed cura-
hotography is more than the tography resonates with archiving the past tor of Contemporary Art from Africa. Her
art of taking a picture. It is a and present that saturates around the world artistic practice has been credited to inspire
powerful story-telling tool. It is, today. The thousands of migrants separated many already and upcoming artists, not
therefore, not surprising that it from their families are able to relive those to mention the numerous art festivals she
is increasingly being courted as happy moments of yesterday by a single curated in and beyond the continent. In
a medium to narrate the di- picture taken before the migration. providing a stage at the KPF to celebrate her
verse African experience on one stage called Still, the nature of the program for the work, the organisers are playing a critical
the festival. festival offers intriguing approaches to the role in the art: keeping her memory alive
The Kigali Photo festival is the latest addi- appreciation of the objectives of this biennial. and also transmit her valuable knowledge to
tion on the African contemporary art scene; The program meanders through guided the young generation of female curator she
after the Lagos Photo Fest and Addis Foto tours of the main exhibition by the event’s inspired along the way.
Fest. curator, Robinah Nansubuga (Uganda) to The Kigali Photo Fest is another step
Hosted under the theme: `In Search of workshops with groups of photographers forward in propagating a new chapter of
Relevance: Locality and Remediation’, the and writers on topics like human rights and Africans taking part in their destiny, and
festival will bring together bodies of work culture (Rwandan culture); through panel therefore undercut the notion of cultural
that celebrate Africa’s diversity and foster discussions with key figures like Chris imperialism that dominated the arts for the
learning. It will involve workshops on issues Schwagga, Bathsheba Okwenje and Yves first part of the 21st century and before. If
that matter on the continent. Manzi in the photography discipline on how sustained, it will continue the tradition of
The idea is to contextualize the exhibitions ones identity and past connections with interactive and collaborative artistic practices
and workshops in the global setting. Such different places layer over their positioning on the continent that includes art festivals, in
context enables varied consumption and at the precise moment. Such interactive order to genuinely grow the Art scene with-
understanding of the specific themes interro- engagement seek to find answers to some in the region and beyond.
gated to different audiences across the globe. of the complex questions photographers The Kigali Photo Festival is organized by
An example of such approach is the film encounter in their daily artistic practice, but the Kigali Centre for Photography is a collab-
‘The Faces We Lost’ that explores the impor- more so, create inclusiveness for the public orative initiative by Artistic Photographers
tance of family photographs for the survi- for future sustainability of the festival. in Rwanda. The festival started on 7th- 16th
vors of the Rwanda genocide. After 25 years With intent to validate this fete to an June 2019 in Kigali.
of the genocide the survivors remember international stage of contemporary art, the
their beloved ones through family portraits organisers deliberately choose to evoke Bisi Image courtesy of the Kigali Photo Fest
taken during celebrations of different family Silva’s memory in the festival. Bisi Silva

June. 14 - 20 2019 35
Millionaire uses roadside billboards to find love Stolen beer van returned
for his wife,” and invited
potential candidates to after free beer offer
sign up for an “exclusive The firm put the appeal on social media
VIP event” on June 7, via after CCTV showed three people stealing the
a custom website. Many vehicle from Charlotte, North Carolina in the
thought they were a early hours. The Unknown Brewery Company
joke. But self-proclaimed posted: “Whoever finds it, Brad will buy you a
“LDS matchmaker”, Erin keg party! If you stole it and bring it back, you
Schurtz, described her cli- will also get a keg party (smile for the camera).
ent as a 30 to 45-year-old Please DM us if you see it.” The distinctive
“handsome” millionaire. black and green van was tracked down in
A mysterious million- mysterious millionaire is “This person has tried under an hour after 15 people contacted
aire has been making a Mormon - a mysterious lots of different avenues them with tips, with Instagram user Caroline
news headlines for his member of The Church of and hasn’t been suc- Klimowski the first to spot it. To celebrate
unusual approach to Jesus Christ of Latter-day cessful yet. He’s a great the van’s speedy recovery, the brewery said
finding a new wife – post- Saints - and the billboards guy and has so much to it would produce a special beer named “Van
ing large ads on roadside sprung up in Salt Lake offer,” she said. By May Theft Auto”, selling for 25 cents a pint (20p) to
billboards asking women City, Utah in USA in 7th, 326 women had cover the taxes. “That’s as close to a free keg
to audition for an exclu- May. They read simply: signed up and thousands party as we can do for you,” said the brewery.
sive group date. The “LDS Millionaire looking probably did later.

Human mouth-shaped Wife parades cheating


purse is freaky! man naked on top of car
A Japanese amateur artist has decided to A Colombian man recently
give the popular phrase ‘to put your money became the laughing stock of the
where your mouth is’ a literal sense by creat- internet after allegedly agreeing to be
ing an ultra-realistic coin purse shaped like a paraded naked on the roof of a car as
human mouth. Complete with stubble beard punishment for cheating on his wife.
and soft pink lips, the coin purse designed
by Japanese music producer and amateur
A video of a naked man lying
on top of a white car and being
Music star eyes
artist ‘Doooo’ is one of freakiest things I’ve
ever seen. Not only does it look like the low-
paraded around the Colombian presidency in Ghana
city of Barranquilla has been doing
er half of a man’s face, but it even opens up the rounds worldwide. The bizarre Popular Ghanaian dancehall musician
like a human mouth, revealing ultra-realistic scene reportedly occurred on May Shatta Wale has revealed plans concerning his
teeth and pink, wet-looking gums. 15, when the man’s wife caught him ambition to stand for president in Ghana in the
in bed with another woman at a local next elections in 2020. The A self-proclaimed
motel. He begged for forgiveness, king of African dancehall is already asking fans
but the scorned wife told him that to vote him on several occasions. It is not clear
the only way to save their marriage if the ‘Gringo’ hitmaker is really serious about
was for him to accept a humiliating getting into politics or he is just making fun.
punishment. He was to agree to
Shatta Wale is one of the most popular figures
lie naked on top of their car as she
in Ghana as he has been used as a campaign
drove home, with nothing but a
tool by some political parties.
towel to conceal his face with.

Company sells `Young woman aroma” deodorant


Deoco, a range of women’s beauty prod- company Rohto Pharmaceutical announced working on Deoco, a line of body soaps and
ucts that allegedly captures the coveted that it had successfully isolated two fragrant deodorants rich in Lactone C10 and C11.
“young woman smell”, has become a huge chemical compounds, called Lactone The beauty products are being snatched up
hit in Japan, among both older women who C10 and C11, which younger women’s by single men, because the sweet aroma –
want to smell younger and lonely men who bodies seemed to produce in much larger described as a fruity combination of peach
crave the fragrance of a younger woman. quantities than those of older women. and coconut – makes them feel like there is a
The story of this intriguing line of After making the discovery and isolating young woman in close proximity.
cosmetics began last year, when Japanese the two compounds, Rohto quickly started

36 June. 14 - 20 2019
Kampala driving
needs courtesy
It means you give up your right for the sake of safety

Motorist face it tough to join the Logogo bypass through Prince Charles drive junction

By motoring Guru was in lane three, I indicated right turn and Courtesy on the road also involves recog-

T
assumed he would understand my situation nising and accepting some responsibility for
here is a junction in Kampala City and let me squeeze into lane three (It is the the actions of fellow road users. I was clearly
that should be called the `devil’s only way to drive here and most drivers in the wrong lane for my turning, right
death trap’. It connects Prince easily understand this). Not Volvo Monster next to the Kira Road police cross junction.
Charles Drive to Lugogo Bypass although he had left a gap. But by the time I But it was because of the bad road design
in the Bukoto area. The junction was not understood he was not giving me way and I not by choice. The cross junction used to
designed for faint-hearted drivers. Driving stopped, our vehicles were almost touching be a roundabout which we would circle to
here often involves entering and sharply side by side (because Monster Volvo had Naguru. Now we have to cut through night-
cutting through three lanes of thick traffic accelerated to close the gap!). Too late – driv- marish traffic. Too many crashes are caused
to reach the right turn to Naguru. Not to ing mirrors flew off cars. Unfortunately his; by lack of courtesy and impatience.
mention crisscrossing boda-bodas, fruit ven- not mine. And fortunately, he just drove off. Driving courtesy is required mostly when
dors, and pedestrians. I can only compare Still, I wonder – should changing a lane someone is overtaking, driving slower or
it to the wildebeest crossing of the crocodile in heavy jam have led to flying side mirrors faster than normal, is aggressive, distracted,
infested waters of the Masai Mara River in and rising heart rates? Absolutely not. All or merges badly. In most cases, our roads
Kenya. It requires desperation, courage, and that was required was a little driving cour- have traffic congestion, have no passing
recklessness. But success depends on luck tesy. lanes, and are narrow, full of potholes and
and courtesy of other drivers. Driving courtesy in many situations hazards, and are known high crash roads
On a recent trip, I almost got clobbered by means you give up your right to be where like the Masaka highway.
a no nonsense driver of a huge Volvo SUV. I you are on the road, to the person trying In spite of this, simple courtesy and
had cleared two scary lanes and was desper- to be there. It is about being forgiving and respect for fellow road users would make
ate to go into the third and fortunately last making allowances, recognising that you driving more enjoyable even in these condi-
lane for my turning. Since I was in lane two will benefit when this goodwill is recipro- tions. More importantly the `devil’s death
but slightly ahead of Monster Volvo who cated. trap’ junction would be safer.

June. 14 - 20 2019 37
Basemera Stella Maris makes math fun
‘Parents sometimes feel sympathy for their
children and deny them chance to explore’
By Agnes E Nantaba from the neighborhood and family until

S
it started hitting me that it is something I
tella Maris Basemera Stella Maris could do professionally,” she says.
is a private tutor, academic coach, She graduated as a teacher with a
creative learning methods re- Bachelor of Science with Education and a
searcher and C.E.O of Creative Certificate in Guidance and Counseling
Learning AfricA+; a learner support Com- both from Makerere University Kam-
pany. Basemera is also an inaugural am- pala. Her interest was, however, not to
bassador of Connections Based Learning go to class but offer learning support to
by Sean Robinson, Canada.  students and teachers.
For private tutoring, Basemera trains The best platform to use was social
both teachers and students through media and particularly Facebook.
teaching aids and learning materials that She displayed how good she was
make mathematics simpler and enjoyable with calculations and would make
to learn. She says that her basic target for herself visible by commenting
teachers is mindset change and getting on especially issues related to
them think outside the box and be cre- education. Noticing that some
ative through research. parents had a negative attitude
“Teachers shouldn’t only look at what towards mathematics, Basemera
is written in books because the 21st centu- introduced her tutoring services.
ry needs more creative thinkers to be rele- Her first assignment was to prepare
vant to the learning needs of pupils,” says some students for transition into a
Basemera, “It’s a way of making learning new school. She operated on social
fun and real.” media for two years without a physical
As part of making learning more fun office. She has since worked with a wide
and enjoyable, she makes use of the out- range of learners, teachers, schools and
side environment because, she says, learn- organisations. She has done a series of
ing shouldn’t be tagged to classrooms professional development courses and
only. She encourages use of learning has recently done a curriculum develop-
materials made from the environment ment support role for Rutindo Math +
such as leaves, tree branches. Culture project. 
She says, “Sometimes classrooms get She says, “It was a ripple effect
boring to the learners”. from happy clients as well as being
For some children, Basemera says she relevant on Facebook”.
works through their school homework Basemera is the last child of
assignments while others are given Christopher Kaliisa Bwanswa
individual exercises through use of the (RIP) and Scolastica Aku-
available resources in line with existing gizibwe Kaliisa. Born in
cultures. Mulago Kampala, she
For the love of math, Basemera has also went to Shimoni demon-
published a logical reasoning book for stration school and
learners, “Fun Math Activities” and is Taibah High School
soon releasing another for parents and before joining Mak-
teachers called “My Top Secrets To Mak- erere University.
ing Learners Love Math”. The books are She says she
guides to enabling students love math. has found that
She also plans to make tangible play parents some-
learning materials for those in pre-school. times feel sym-
Basemera’s love for teaching and math pathy for their
is a childhood dream. She says she loved children and
to teach fellow children and everything push them away
in her surrounding - including chicken! It from math, but
was, however, during her Senior Six Vaca- she says it is bet-
tion that Basemera’s love to help students ter to give chil-
who had difficulties with math pushed dren a chance
her to explore her teaching skills. to explore.
“I used to just help needy students

38 June. 14 - 20 2019
Q&A

Basemera’s Liteside
Any three things that What is your greatest What is the quality united.
we don’t know about extravagance? you most like in a

I
you? I love shoes and woman? What do you regard
am so passionate bags. I also like movies. Caring and honest as the lowest depth of
about what I do women usually stand misery?
and have a strange What is your current out. My father passed
determination that state of mind? away at a very critical
pushes me to achieve I am happy. What is the quality moment; it is the most
what I set out to. I am you most like in a disorganised year I
very honest about life What do you consider man? have ever had and
and the surrounding; I the most overrated Caring and honest. wouldn’t wish anyone
will not tell you what virtue? to lose a parent at a
you want to hear but Failure and the What or who is the young age.
what I must tell you. whole blame game greatest love of your
towards government; life? What is your favorite
What is your idea of we have focused so I love my family; occupation?
perfect happiness? much on expecting they are very Being a teacher is
There is nothing too much from the supportive people. the best job in the
like perfect happiness; government and yet world because it’s very
only happiness and it’s as individuals, we When and where were flexible and fulfilling.
about accepting the can do a lot more. you happiest?
world the way it is and Government and other Everything has a What do you most
going with the right authorities can come in different degree of value in your friends?
choices. We all have later. happiness; I am happy Unity, reliability and
a conscience and that on my birthday and support for each other.
usually dictates what is What does being moments with my
right or wrong. powerful mean to you? family. I look at every Who is your hero of
Being powerful has day as one to celebrate fiction?
What is your greatest got to do with being life and enjoy. I like avengers and
fear? able to make a positive marvel related things.
Fear of not being impact on others. Which talent would I normally look out for
informed. you most like to have? the latest releases. They
On what occasion do Talent is inborn but make me laugh which
What is the trait you lie? I want to add a skill is healthy.
you most deplore in I strive to be honest of sign language. I am
yourself? and that has gotten me just giving myself time What are your favorite
I don’t like into trouble sometimes but will soon embark names?
disappointing so with the kind of work on that journey. I love the names
sometimes I make I do. I however ensure Raphael and Michelle.
programmes even after that I strike a balance. If you could change
knowing that I can’t Lies usually come back one thing about What is your greatest
have extra hours. to you and you know yourself, what would regret?
that whatever you do it be? I normally turn
What is the trait or tell in the dark will We are all imperfect challenges into
you most deplore in always find a way humans so I wouldn’t learning experiences.
others? through the light. want to change I turn regrets into
I am a very flexible anything about myself. motivations.
person so I try to What do you most
match up. dislike about your Where would you How would you like
appearance? most like to live? to die?
Which living person I am enough so I I am very I prefer when I am
do you most admire? don’t wish for things I comfortable in Uganda very old and just sleep
Dr Nanyonga don’t have. because there is away.
Kivumbi; I admire everything you need to
her smartness and Which living person live well. What is your motto?
ability to teach math do you most despise? ‘Be open minded
in a simple way. I also I prefer not to mention What is your most and face anything’
admire Prof. Maggie names but generally I treasured possession? and ‘Always try to be
Kigozi; I like the way have issues with arrogant I love my family so different’.
she has earned it all people although I try to much and especially
but remains humble. be flexible. the fact that we are

June. 14 - 20 2019 39
global comment

By Alzbeta Klein
Climate-smart investment in Africa
Emerging-market cities could attract $29.4 tn in
cumulative climate-related investments by 2030

O
n the evening of March 14, tropical aimed at accelerating climate action that represents. In 2016, the IFC created the For-
cyclone Idai slammed into the serves the continent’s people. ests Bond, a first-of-its-kind instrument that
southeastern coast of Africa. On As part of the Africa Pledge, the World gives investors the option of being repaid
the same day, some 1,700 miles Bank announced that it will deliver $22.5 in cash or carbon credits that can be used to
due north, I gathered with global leaders billion in new climate financing to Africa support forest conservation. And last year
and climate experts at the third One Planet from 2021-2025. This financing, combined the IFC launched the world’s largest green-
Summit (OPS) in Nairobi, Kenya. The two with the World Bank Group’s Action Plan bond fund dedicated to emerging markets,
scenes could not have been more different – on Adaptation and Resilience, better posi- the Amundi Planet Emerging Green One
or more closely linked. tions African countries to unlock investment fund, committing $256 million to increase
The humanitarian emergency triggered opportunities and manage the risks of a the capacity of emerging-market banks to
by Idai continues to unfold. Beira, Mozam- changing climate. fund climate-smart investments. Such efforts
bique, with its 500,000-plus residents, bore Even with such financing from interna- earned the IFC the title of Green Bond Devel-
the brunt of the cyclone’s impact. But the tional institutions, however, the costs of opment Bank of 2018 at this year’s Green
consequences extend much further, not least building climate resilience will far exceed Bond Pioneer Awards.
because Beira is home to the main port for public budgets. Mobilising private capital But even with the most innovative instru-
some of its regional neighbours, including will be crucial to close the financing gap, and ments, sufficient private investment will not
landlocked Malawi and Zimbabwe. An here the role of the International Finance be forthcoming if governments do not create
inland lake the size of Luxembourg is now Corporation – the largest global develop- the right conditions. To attract private invest-
displacing hundreds of thousands of people ment institution focused exclusively on the ment to climate-smart projects and generate
across all three countries. private sector in developing countries – is a viable project pipeline, African cities and
At a time when climate change is making essential. In particular, the IFC, a member of countries must improve their creditworthi-
catastrophic weather events more common, the World Bank Group, has been developing ness and boost project bankability.
Idai amounts to a stark reminder of our and implementing innovative financing The rewards of such efforts would be
collective responsibility to boost resilience, products, such as green bonds and carbon enormous. A recent IFC study, Climate
especially in the most vulnerable areas. After credits, to enable private-sector actors to Investment Opportunities in Cities, esti-
all, as Beira’s severely strained budget makes invest in climate mitigation and adaptation mates that emerging-market cities could
clear, the costs of waiting for disaster to efforts. attract more than $29.4 trillion in cumulative
strike are much higher. According to Lloyd’s The green-bond market alone, after a climate-related investments by 2030 in six
City Risk Index, even in a conservative sce- decade of rapid growth, is poised to exceed key sectors: green buildings, public transpor-
nario, climate-related risks could cost cities $180 billion this year, and the IFC is eager to tation, electric vehicles, renewable energy,
$123 billion annually, on average, in lost help the world seize the unrivaled oppor- climate-smart water systems, and waste
GDP. tunity in climate finance that this market infrastructure and management. Of that, $1.5
The challenge will be compounded as the trillion would go to Sub-Saharan Africa.
adverse effects of climate change on agricul- Of course, the specific composition of
ture and other rural livelihoods accelerate investment opportunities depends on local
already-rapid urbanisation. In Sub-Saharan
Africa, the number of urban dwellers, In Sub-Saharan contexts. For example, this year’s OPS host,
Nairobi, has investment potential of $8.5 bil-
already in excess of 470 million, is set to
double over the next 25 years. By 2050, the
Africa, the lion, including $5 billion in electric vehicles.
Some governments might be tempted to
region is expected to account for 20% of the number of channel investments toward other devel-

urban dwellers,
world’s urban residents. opment objectives that promise tangible
But rapid urbanisation can also serve as an short-term benefits, such as poverty erad-
opportunity to build climate-resilient cities.
To make the most of it will require mobil- already in ication and education. But, if these gains
are to last, they must be secured along-
ising large amounts of investment in areas
like climate-smart water management, clean
excess of 470 side progress on building climate resil-
ience. Otherwise, disasters like cyclone
transport, and green buildings. million, is set to Idai will continue to wash away people’s

double over the


Mobilisation of climate finance was a cen- lives, livelihoods, and futures.
tral theme at this year’s OPS, with Africa
being the main region of focus. The partic-
ipants, who included some of my World
next 25 years Alzbeta Klein is Director and Global Head of
Climate Business at the International Finance
Bank Group colleagues, as well as heads Corporation.
of state, civil-society organisations, and
private-sector actors, proposed the Africa Copyright: Project Syndicate, 2019.
Pledge, which contains a set of commitments www.project-syndicate.org

40 June. 14 - 20 2019
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