The Independent UGANDA - Issue 488
The Independent UGANDA - Issue 488
The Independent UGANDA - Issue 488
Fall armyworms are back, How much sex Bad 2016, gloomy lebrating
but governments help isnt makes us happy? 2017 for banks Ce
Issue No. 488 Sept 22 - 28 , 2017 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Years
Behind
Museveni
land tour
confusion
Cash handouts,
secret age-limit
talks and more
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Celebrating
INSIDE: BUSINESS
Economic
POLITICS: Godber SUDAN: Matthew Musevenis vision
GOVERNANCE: FEATURE NEWS
A NALYSIS NEWS
A NALYSIS Why do experts, World Bank
anxieties
look of corruption Coast crisis freedom investment frenzy in again as major changes over HIV Teachers on Museveni can Shs 68 trillion
Tullows backyard rock force strategy new transfer save Zziwa but economy
policy what after?
Emirates Airlines in control
INDEPENDENT
Issue No. 239 November 09 - 15 , 2012 Ushs 5000, Kshs 200, RwF 1500, SDP 8
THE
You Buy the Truth, We Pay the Price Issue 144 January 07 - 13, 2011 Ushs 4000, Kshs 180, RwF 1200, SDP 6
Issue No. 230 September 07 - 13, 2012 Ushs 5000, Kshs 200, RwF 1500, SDP 8
Issue No. 347 December 12 - 18, 2014 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Obama II Win
excites
world Papal Visit
problem
Secret
As seen from the
delegates conference
Issue No. 396 Nov. 27 - Dec 03, 2015 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Issue No. 395 Nov. 27 - Dec 03, 2015 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
oil deals
New
rules
to
force
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Welcome
Inside the hunt
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Pope
for Al Shabaab
INTERVIEW NEWS ANALYSIS BUSINESS
Land grabbers
50 years of Joy & tears
All Makerere money Crane Bank
A SPECIAL INVESTIGATION
should be put in
one basket for
better staff pay
hit Entebbe
opens Malaba
Branch
Shs 234 Bn brewery opens
INSIDE:
Prof.
Frederick
Jjuko,
Prof.Daniel
Schydlowsky,
Prof.
John
Ssali,
Lawrence
Kagwa,
Mayanja
Nkangi,
Prof.
Mwambutsya
Ndeebesa,
Godber
Tumushabe,
Maj.
John
Kazoora,
Yoga
Adhola,
Eliya
Kisembo,
Andrew
Mwenda,
Abbey
Francis
Ssemuwemba,
Naomi
Wolf,
Simon
Mayende,
Moses
Byaruhanga,
Moses
Matovu,
Diplock
Ssegawa,
Ronald
Kerajo 27: 11: 2015
By Andrew M. Mwenda THE ANNIVERSARY EDITION
www.independent.co.ug www.independent.co.ug Issue No. 280 August 30 - September 05 , 2013 Ushs 5000, Kshs 200, RwF 1500, SDP 8
INTERVIEW INSIGHT BUSINESS NEWS ANALYSIS TRIBUTE: BUSINESS
Economy on Why
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Issue No. 234 October 05 - 11, 2012 Ushs 5000, Kshs 200, RwF 1500, SDP 8 Museveni Call rates stay up Independence Ali Alamin NSSFs
speech was thin but UCC says new
track- IMF on substance law will compel
Day in
pictures
Mazrui
Feb.24 1933 to
Shs 366
billion
INDEPENDENT INDEPENDENT INDEPENDENT
THE
THE
THE
Issue No. 218 June 15 - 21, 2012 Ushs 5000, Kshs 200, RwF 1500, SDP 8 Issue No. 339 October 17 - 23, 2014 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
You Buy the Truth, We Pay the Price Issue No. 154, March 18 - 24, 2011 Ushs 4000, Kshs 180, RwF 1200, SDP 6 You Buy the Truth, We Pay the Price Issue No. 157, April 08 - 14, 2011 Ushs 4000, Kshs 180, RwF 1200, SDP 6 You Buy the Truth, We Pay the Price Issue No. 158, April 15 - 21, 2011 Ushs 4000, Kshs 180, RwF 1200, SDP 6
Supplement
Uganda Health system
strengthening project
scholarships
Tight budget
scheme
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INTERVIEW: RWANDA: SUDAN: www.independent.co.ug Issue 339.indd 1 10/13/14 8:20 PM
RWANDA: SUDAN:IDanger of NEWS: Budget reading Economic turbulence War looms large in
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Can its economy NGOs providing basic Whistleblower is ritual of same wont shake the South Kordofan,
services to almost Abyei and Darfur
accommodate its exposes smuggling old promises countrys optimism COMMENT
Q&A BUSINESS
Avalanche of banks
ROAD TO 2016 NEWS ANALYSIS BUSINESS
Richard Byarugaba Dont BoU committed
spiraling birth rate? 90% of the country ring inside tax body on reducing NSSF politicise `The country Foreign
suspense account fight against
corruption
EU to lead new UN
energy initiative World Paul Kagame, Yoweri Museveni, Barack Obama, Uhuru Kenyatta, Goodluck is about to be
plunged
TV wins
to ensuring
economic
INDEPENDENT
Jonathan, Bill Clinton, Augustine Ruzindana, Olara Otunnu, Ssebaana Kizito,
mourns Gerald Ssendaula, Pope Francis, Andrew Mwenda, Yusuf Sserunkuma,
Rebecca Kadaga, Kintu Musoke, Norbert Mao, Paul Kawanga Ssemwogerere,
into chaos stability
THE
Mandela
Issue No. 167, June 17 - 23, 2011 Ushs 4000, Kshs 180, RwF 1200, SDP 6
SUPPLEMENT:
Kayihura sacks
BUJAGALI LINE
Land grabbing,
You Buy the Truth, We Pay the Price Issue No. 159, April 22 - 28, 2011 Ushs 4000, Kshs 180, RwF 1200, SDP 6
COMMISSIONED
Issue No. 384 Sept. 04 - 10,2015 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
2016
Election
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or war?
Security experts
Walk www.independent.co.ug
NEWS ANALYSIS
Corruption in
RWANDA
Rwandas
BUSINESS
NEWS ANALYSIS
Unwanted
INTERVIEW
Politics should
BUSINESS
In-flight catering
raise alarm over
to war
High costs threaten comes of age
low cost housing investors be a sacrifice -
F
C igh
Uganda business capital sector
Making
resource
rich
regions
Dr Ian Clarke Wining but not winning, yet
orr ti
INTERVIEW:
Besigye wants to
RWANDA:
Is corruption on
SUDAN:
South Kordofans up ng
in Uga
nda
American
companies
make?
inflows firm Rwanda targets medical tourism become
food
poor
ti
topple the govt - the rise in the EACs volatile governor on
Public
anger
greets
Kabushenga cleanest country? vote
Museveni
even
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before
he
is
swornin
INDEPENDENT Nelson
THE
Mandela
You Buy the Truth, We Pay the Price Issue No. 162, May 13 -19, 2011 Ushs 4000, Kshs 180, RwF 1200, SDP 6 Issue No. 261 April 19 - 25 , 2013 Ushs 5000, Kshs 200, RwF 1500, SDP 8
Issue No. 268 June 07 - 13 , 2013 Ushs 5000, Kshs 200, RwF 1500, SDP 8 Why Ugandan We want a world Big dairy
www.independent.co.ug pupils dont class, first-world opportunity
learn Police Force
1918-2013
Uganda, Sudan How Monitor was
SUDAN:
South Sudans
COMMENT: Onyango-
Obbo: Museveni won
BUSINESS:
Ugandan business SPECIAL REPORT: RWANDA: INTERVIEW:
Cut down on
ICC trial looms over Special Commemorative Issue
closed, re-opened
From bitter rivals
Kayihura, Kivejinja
free or fearful because he is bad, not women coming teargas and
good president into their own success is creating to friends - how
press? conditions for Kagame and increase teachers
his downfall Sarkozy reconciled pay- Prof. Kajubi
INDEPENDENT
THE
Issue No. 318 May 23 - 29, 2014 Ushs 5000, Kshs 200, RwF 1500, SDP 8
You Buy the Truth, We Pay the Price Issue 152 March 04 - 10, 2011 Ushs 4000, Kshs 180, RwF 1200, SDP 6
Issue No. 181, September 23 - 29, 2011 Ushs 5000, Kshs 200, RwF 1500, SDP 8
NEWS ANALYSIS INTERVIEW BUSINESS
Makerere
Issue 295 copy peter new.indd 1 12/10/13 4:04 PM
Central Bank Ministers Bank profit
Inside Umeme
to investigate have become delight
Was it under fire MTN too lazy
Big regional trade boost
News analysis
Besigye
gains
in
the
east,
Interview
WFP
launches
Business
Low
tea
price
EAC
Top
donor
shares deal
Universitys
problems
go
beyond
or stolen? pay
and
strikes
!%#$&
Issue No. 362 April 03 - 09 , 2015 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Issue No. 404 Feb. 05 - 11, 2016 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Electricity
sector
Politicians battle over
Shs800 billion
Sejusas money,
investor
%#$&
arrest
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www.independent.co.ug What Museveni
camp feared
By Haggai Matsiko
INTERVIEW: officials are lying on oil? Telecom fees to drop Health Spying Imperial Banks
Grounds exist for Museveni financial woes
Museveni is in REGIONAL: UNHCRs direction affirms Rwandas a rebellion - Col. insurance's on wrong
the midst of a stability, yet some refugees remain sceptical losing support, Online fraudsters empty promises `enemy Large consumers task Umeme
Tsunami Felix Kulayigye Besigye gaining threaten car market
BUSINESS: Greasy path for Ugandas oil industry
Issue No. 391 0ct. 23 - 29, 2015 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Issue No. 208, April 06 - 12, 2012 Ushs 5000, Kshs 200, RwF 1500, SDP 8
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Issue No. 185, October 21 - 27, 2011 Ushs 5000, Kshs 200, RwF 1500, SDP 8
Fight over
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Why is Museveni
Fina M
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Bad debts
relee qu try of
asesarte
r IV
NEWS ANALYSIS FOREIGN PRESS
UNEB In Uganda,
BUSINESS
Unhoused
News analysis
Musevenis
bread
and
bullets
Health
Unease
as
only
cancer
treatment
Business
ERA
announces
Uganda
outspends
Kenya
on
military
down Daily Monitor
choking banks experiment its bust generation
machine
breaks
down investor
quits
Besigye predicts:
Chinese plans for Uganda oil and Red Pepper
Experts warn banks
on poor due diligence goes wrong before boom
Tenant versus landlord
Musevenis
regime is Issue No. 414 April 15- 21, 2016 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
collapsing Issue No. 266 May 24 - 30 , 2013 Ushs 5000, Kshs 200, RwF 1500, SDP 8
Issue No. 355 February 13 - 19, 2015 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Museveni intervenes in
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Israel arms dealer case under siege
INTERVIEW NEWS ANALYSIS BUSINESS Concern over private
BUSINESS: PERSPECTIVE: Oil-bribes scandal agencies using security After Museveni, Kampala
Behind the
in historical perspective Lukwago Kyambogo EACs monetary
union minister, MPs, Lukwago spell
scenes at
By Andrew Mwenda
on Museveni
Universitys Mr. Fix it
Prof.
Ndiege
seeks
to
reconcile
an
of the unequal in turf wars out terms of engagement
Muhairwes exit and Musisi
Time to eat, travel less
Issue No. 189, November 18 -24, 2011 Ushs 5000, Kshs 200, RwF 1500, SDP 8
News analysis Health Business
Issue No. 294 December 06 - 12, 2013 Ushs 5000, Kshs 200, RwF 1500, SDP 8 Massacre
on
IGG
Mulyagonja
launches
Masaka
road
Issue No. 431 Aug 12- 18, 2016 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Experts
warn
of
explosion
if
they
dont
News analysis
Eastern
DR
Congo
erupts
again
Health
skin
bleaches
Business
Stanbic
Banks
Social
pounce
Issue No. 432 Aug 19 - 25, 2016 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Top lawyers reveal details
of land grab plot
over Karuma, Isimba
Muloni, Kabagambe
AmAzing
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STRATEGY & EDITORIAL DIRECTOR: Andrew M. Mwenda WRITERS:Ronald Musoke, Flavia Nassaka, Ian Katusiime,
MANAGING EDITOR: Joseph Were Agnes Nantaba, Agather Atuhaire, Julius Businge.
INVESTIGATIONS EDITOR: Haggai Matsiko CARTOONIST: Harriet Jamwa
BUSINESS EDITOR: Isaac Khisa DESIGN/LAYOUT: Ronny Kahuma, Sarah Ngororano.
PHOTOGRAPHER: Jimmy Siya
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2 Sept 22 - 28 , 2017
Offline
President Museveni
congratulating Prof.
Barnabas Nawangwe
after being installed as
the vice chancellor of
Makerere University
on September 14 at
Makerere.
Deputy Leader Of
opposition in the
parliament of Uganda,
Roland Mugume,
(R) addressing the
press at parliament
on the age limit bill.
Looking on is Julius If I were you I consider mediation. If
Ocen MP Kapelebyong you can settle this matter out of court,
County Amuria
District INDEPENDENT/ you would retain the relationship you
JIMMY SIYA had before. Otherwise, at the end of it
all, one of you will be hit hard.Justice
David Wangututsi on the Sudhir- Bank of
Uganda case
Richard Ssewakiryanga,
Executive Director NGO
Forum and president of
the Economic, Social
and Cultural Council
at the African Union
speaks during the CSOs
engagement with AU
advisory board on
corruption at Serena People are interested in farming on
Hotel on September a large scale but the people with the
15. He urged the board degrees in agriculture are not helping
to come up with tough
laws against corruption
out.Gen Moses Ali, Deputy Prime Minister on
in Africa. INDEPENDENT/ agricultural extension workers
JIMMY SIYA
10 44 Shs13bn
Brain surgery patients Doctors whom government Money government has
who have been discharged has sent abroad for training in availed for innovations
from Mulago Hospital gynaecology and other disciplines in ICT sector
Sept 22 - 28 , 2017 3
The week
Military Police codon off Constitutional Square Park in Kampala CBD on Sept. 19 in anticipation of protests against the age limit bill. INDEPENDENT /JIMMY SIYA
Anti age limit MPs summoned for interrogation Parliament chooses firm to
After an NRM legislators meeting
organized by Kassanda South representa-
oppose the proposed amendment saying
that the MPs in support had been paid. audit auditor generals office
tive Simeo Nsubuga proposed the tabling However, MPs Ssewanyana, Sseki-
of a private members bill to amend article kubo and Nsereko on Sept.18 received A local audit firm Kisaka and Company
102 (b) of the constitution which puts pres- letters from the Police Criminal Investiga- Certified Public Accountants has been
idential age limit at 75 years, some mem- tions Department headquarters in Kibuli selected to audit accounts of the Office of the
bers of parliament called a press confer- to be interrogated about the statements Auditor General. The records to be audited
ence to announce that they were against they made during the press conference. are from financial year 2005/6 to date.
the move. MPs Theodore Ssekikubo According to the police, the statements The firm set to do the work at a rate of
of Lwemiyaga, Muhammad Nsereko of were inciting violence. But, Ssekikubo said Shs965million will after the research present
Kampala Central, Barnabus Tinkasimire these summons were unconstitutional its findings to parliament. Kakumiro woman
of Buyaga West and Allan Ssewanyana since as parliamentarians they have the MP Robinah Nabbanja who presented the
of Makindye East on Sept.14 took to the liberty to express themselves freely while motion proposing that the public audits
media to warn and call upon the public to in the precincts of the house. body be audited said the local firm was
preferred of the three including BDO
East Africa and Thomson & Co that had
expressed interest in the contract.
The [evaluation] committee noted that
Kisaka & Co. had the highest total, technical
and financial scores of 90.6 per cent, she
said.
While Section 36 (1) of The National
Audit Act, 2008, provides for the auditing
of the accounts of the Office of the Auditor
General by an auditor appointed by
Parliament, it had taken the body more than
ten years to be audited yet the same act
provides that the Auditor General submits
its accounts to the auditor appointed by
parliament within three months after the
end of every financial year.
L-R MPs- Barnabas Tinkasimire, Theodore Ssekikubo and Muhammad Nsereko.
4 Sept 22 - 28 , 2017
The week
Museveni woos Qatar investors DPP appeals Kamoga and
President Yoweri
Museveni has said Uganda
services and ICT, he said.
Museveni was meeting
reduce the cost of electricity
and business transaction
five others acquittal
is fast becoming a middle- a delegation from Qatar in Uganda and promote
income country with vast Investment Fund, led by industrialisation as Uganda The Director of Public Prosecutions
investment opportunities the CEO Sheikh Abdulla moves to becoming a middle Mike Chibita has appealed the acquit-
in agro-processing, bin Mohammed bin Saud income country. Sheikh tal of the former Tabliq Sect leader
industrialization and the al-Thank at Park Hyatt Abdulla expressed interest Sheikh Yunus Kamoga and 5 others on
service based sector. Hotel at the sidelines of the to invest in infrastructure charges of murdering Muslim clerics.
Uganda is moving United Nations General development projects in This comes after three Justices of the
towards becoming a fast Assembly in New York. The Uganda such as electricity, International Crimes Division Court
world country based on President said investment agro processing industries led by Ezekiel Muhanguzi in August
four sectors; commercial in the four critical areas and the hospitality business. ruled that they didnt find sufficient
agriculture, industries, including in ICT would evidence implicating them to the
murder of Shiekh Mustafa Bahiga and
Shiekh Ibrahim Hassan Kirya.
However the notice of appeal lodged
in the Court of Appeal by the DPP
maintains that the evidence he brought
before the High court was sufficient
enough to find guilty Sheikhs;
Yunus Kamoga , his brother Multabh
Bukenya, Siraje Kawooya, Yusuf
Kakande, Abdul-Salam Ssekayanja
and Fahad Kalungi of murder of the
said Sheikhs in December 2014 and
June 2015 respectively. Sheikh Kamoga
has already appealed the courts
decision to convict him of terrorism
and sentencing him to life in prison
saying the punishment was harsh.
President Museveni (R)with Sheikh Abdulla bin Mohammed bin Saud al-Thani (L) CEO of Qatar Investment Fund.
Dial *133 * 8#
Sept 22 - 28 , 2017 5
The week
6 Sept 22 - 28 , 2017
The week
Accountants institute release August CPA exams FDC launches campaign against
available for students to prepare for
age limit removal
these examinations. They said that most
During a weekly
candidates who sit for the August exam- press conference
inations are ones that fail ones (exams) held at their party
for June. As such, Protazio Begumisa, headquarters in Naj-
the president of ICPAU urged students janankumbi, leaders
to improve performance by reading of the opposition
widely, getting practical training from Forum for Democratic
resourceful institutions and utilising Change (FDC) party
skills of experienced lecturers. The on Sept.18 launched a
Begumisa (R) and the PAEB Chairman Uthman August examinations had 97 candidates countrywide campaign
Mayanja (L) at the release of the results. compared to 107 candidates recorded Nandala Mafabi
to advocate against the
in June 2017. our training is good, planned amendment when they start hold-
The Institute of Certified Public Begumisa said. There are not so many of article 102 (b) of the ing processions in dif-
Accountants of Uganda (ICPAU) ICPAU members on the street; they constitution that seeks ferent areas. He added
released the August 2017 Certified Pub- are competitive. Derrick Nkajja, the to remove presidential that they are planning
lic Accountants of Uganda CPA (U) ICPAU chief executive officer said that age limits. to petition the speaker,
course results indicating 3.1% pass rate the examinations being released and the The partys secre- the Director of Public
decline when compared with the June training offered were the foundation of tary General Nandala Prosecutions and the
2017 examinations. Under the manage- the accountancy profession and needed Mafabi told journalists Inspector General of
ment of the Public Accountants Exami- to be handled well for the betterment of that they had com- Government to help
nations Board (PAEB), the results for the the profession and the economy. Offi- municated to security them investigate pos-
18 papers showed that the average pass cials said the Institute aims to increase bodies to provide them sible crimes committed
rate for August examinations was 31.9% the number of professional accountants with protection just like in the current push by
down from 35.0% in June 2017. Officials from the current 3,000 to 5,000 in the they have been doing different groups for
said that the decline in performance next three years to match the countrys for their counterparts and against amending
was partly attributed to limited time development strategy. in the ruling NRM the article.
Sept 22 - 28 , 2017 7
News analysis Health Business
Nalufenya Whats wrong Sanlam moves to take- lebratin
torture latest with the men? over Lion Assurance Ce g
Issue No. 487 Sept 15 - 21 , 2017 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Years
20 women
killed
What security is
Inbox
doing wrong
Humor www.independent.co.ug
Sserukeera
L
ast week the NRM caucus did of a constitutional provision which is that Museveni can remain president were
the expected and recommended good for many aging Ugandans simply drafted by Kizza Besigye. The second
the removal of age limits on the because Museveni will benefit from it. came in 2003 when term limits of the 1996
presidency so that President The issue that is agitating many Ugan- constitution stood in his way. This time
Yoweri Museveni can rule for life. With dans is not the age limit, even though it the battle to remove them was led by
NRM controlling 82% of parliament, has becoming the rallying cry. Rather it Amama Mbabazi. One of the leaders of
the amendment will sail through easily. is Musevenis seeming permanence in the remove age limits crusade will most
There was a hue and cry among Ugan- power. Many people in Uganda are tired likely run against Museveni is 2031.
dans elites with some people even threat- of Museveni and want him to leave. This The anti age activists want to use the
ening violence. Yet those fighting this is a political not a constitutional issue. constitution to secure their political
constitutional amendment are fighting a Rather than hide behind some preten- objective of getting rid of Museveni,
wrong war. tious defense of the constitution, activists which their political mobilisation and
During the Constituent Assembly, should mobilise people for change. It will organisation has failed to do. This is utter
Ugandas current opposition leader, be easy for Museveni to buy 350 MPs. stupidity. No constitution can protect
Kizza Besigye, opposed the entrench- But it is much harder for him to buy off anyone from any harm. Constitutional
ment of age limits in the constitution. 20 million Ugandans who will be eligible provisions can only work when backed
Now he has joined the bandwagon to vote in 2021. by politics. But as we have seen with the
opposing the removal of this provision. Opposition activists claim that their NRM caucus, age limits lack a politically
Of course Besigye has a right to change position against the amendment is a weighted majority to protect them. So the
his mind. But he and his supporters moral argument and not partisan. They constitution will be amended.
should also remember that Museveni has accuse those supporting lifting of age Law is a creature of politics and con-
a similar right! limits of being unpatriotic sycophants stitutional provisions cannot ensure
Besigye now claims, and his supporters bribed by Museveni, fighting for their their survival because constitutions are
agree, that he opposed age limits because stomachs rather than the good of the created and destroyed by political deci-
he knew the constitution had term limits, country.This is downright hypocrisy or sions.Museveni wrote this constitution
which would limit Musevenis stay in delusional or both. to serve him. Anyone who wants to stop
power. He is qualifying his argument Their ideological cloak is to claim that him must not rely on the constitution but
after the fact. Museveni has also said their politics is not really political; that on politics. They must go out and rally
that when he said the problem of Africa rather it is a reflection of universal values a politically weighted majority for their
is leaders who cling to power, he meant of democracy. They also claim that their beliefs. NRM supporters have every dem-
those leaders who are not elected.These partisanship is really not partisan, but just ocratic right to seek to amend the consti-
changes of convenience only demon- a reflection of some objective moral truths. tution to serve whatever political purpose
strate the opportunism of politicians. They present their case in a way that says they like. Those who disagree with them
Besigye and his supporters have always it is Musevenis supporters politics which should learn this message and instead of
argued that the constitution should be is political and partisanship. This twisted using threats, intimidation and blackmail
about principles not individuals. As a illogic is the problem with opposition on social media, they need to go to the
matter of principle, why should anyone activists and their messiah. villages rally the masses.
above 75 years be denied a chance to Ugandan elites argue without a sense Musevenis opponents have always
serve Uganda as a president? Therefore, of perspective and history. The provision wanted luck to do for them what they
to oppose lifting of age limits because limiting the age at which one can run for have failed to achieve through political
such an amendment would benefit president was not put in the constitution organisation and mobilisation. No consti-
Museveni is placing a person above a because there was evidence that people tutional provision will remove Museveni
principle; and subjecting our constitution aged 75 and above are not capable of gov- from power. Only political mobilisation
to the benefits some individuals may get erning the country. Rather it was meant to by his opponents and nature (when he
rather than to values that transcend those block one person; former president Milton dies) can. Appealing to his moral sense
individuals. Obote, from running for president in case when he has committed himself to ruling
If Besigye really believes people he returned. To argue therefore that the for life is nave. And claiming that their
above 75 years are competent to run constitution should not be amended to fit partisan struggle to get rid of him is an
for president, he should defend this one persons preferences is stupid when it act of patriotism only demonstrates how
principle even if Museveni would be was written to do exactly that. delusional our elites have become. None
the first to benefit from it. Museveni Since he came to power, Museveni has of these politicians whether in NRM
is mortal.Whatever his machinations, been consistent. Each time a constitution or in the opposition is driven by any
there is one inexorable huddle he will provision has stood in his continued stay higher moral purpose; instead all of them
never cheat nature. Museveni will die in the presidency, it has been removed. are driven by greed for power.
and Uganda will remain for a very long The first time it was in 1989 when his
time after his death. Therefore, it doesnt first four years interim period came to an
[email protected]
make sense to oppose the amendment end. The proposals to change the rules so
Sept 22 - 28 , 2017 9
Cover story
Behind
Museveni
land tour
confusion
Cash handouts, secret
age-limit talks and more
By Ronald Musoke
President Yoweri Musevenis countrywide tour
that he says is aimed at defusing what he called
toxic information about the Land Amendment
Bill before Parliament has run into trouble with
experts and opposition politicians. Edmond
Owor, the executive director of the Uganda Land
Alliance (ULA) told The Independent that the
Presidents tour is not only irrelevant, it is also
suspect.
10
O
Cover story
wor told The Independent Godber Tumushabe, the Associate Direc-
It is unfortunate
that the President should tor of the Great Lakes Institute for Strategic
instead be looking criti- Studies (GLISS), a Kampala-based inde-
cally at some of the people
who have been behind the
that Uganda has had pendent think tank says it is noteworthy
that Museveni decided to move around the
compensation fights that land laws which are country giving talk shows while his cadres;
being implemented at
have led to delays in some infrastructure the presidential advisors and Resident Dis-
projects. trict Commissioners, took a backseat.
It is the politicians and the technocrats
in government who already know where
only 10% yet if these Niwagaba says this shows that Musev-
enis tour is definitely not about land.
these projects are going to pass who go same laws were to Niwagaba said the people Museveni has
be implemented at
evicting people off the land expecting big been talking to are not the ones that will
moneys, he says, It is just about Musev- make the laws he wants unless he wants to
eni dealing with these people in his govern-
ment.
say, 50%, Ugandans subject the issue to a referendum. He said
all indicators are that he is already cam-
Judy Adoko, the executive director of would not be hearing paigning for 2021 with impunity.
Sept 22 - 28 , 2017 11
Cover story
12 Sept 22 - 28 , 2017
Cover story
Sept 22 - 28 , 2017 13
Rwanda
R
By Independent Team economic performance. opportunities. The 2018 report also balances
In this edition of Where to Invest in Africa economic activity against the relative ease of
wanda has re-entered the 2018, RMBs Investment Attractiveness doing business. Rwanda came in at 8th posi-
Top 10 list after having just Index, which balances economic activity tion in a report in which the East African
missed it in the past two years, against the relative ease of doing business, region managed to capture four of the top
according to Rand Merchant illustrates how subdued levels of economic ten spots.
Banks latest `Where to Invest activity have diluted several scores on the Kenya, Tanzania, and Ethiopia were the
in Africa report for 2018, re- index when compared to last year, result- other countries which made it into the top
leased on Sept.18. ing in some interesting movements within ten from the East African region.
The theme for `Where to Invest in Africa the Top 10. The report focuses on the main Uganda was, however, the only surprise
2018 is Money Talks and this edition fol- sources of dollar revenues in Africa, which absentee from the East African region since
lows the money on the African continent allows it to measure the most important South Sudan, Somalia, and Burundi are war-
to evaluate aspects crucial to each countrys income generators and identify investment ravaged basket case economies.
14 Sept 22 - 28 , 2017
Rwanda
Top 10 investment the world, with high real growth rates and
making a continuing attempt to diversify its
nations in Africa economy.
In terms of ranking, Egypt has made his-
Rank Country tory by knocking South Africa from its long-
standing top spot regarding investments in
1 Egypt
Africa. This is the first time SA has not been
2 South Africa in top spot since the report was initiated
3 Morocco seven years ago.
Nigeria, on the other hand, has for the
4 Ethiopia
first time not featured in the Top 10. This is
5 Ghana due to the erosion of its short-term invest-
6 Kenya ment appeal by recessionary conditions,
according to the report.
7 Tanzania Egypt displaced SA largely because of its
8 Rwanda superior economic activity score, while SA
9 Tunisia has shown sluggish growth rates, which
have deteriorated markedly over the past
10 Cote dIvoire seven years.
Source: Rand Merchant Banks latest While the report found that SA also faces
`Where to Invest in Africa report for 2018 mounting concerns over issues of institu-
tional strength and governance, some things
still count in the countrys favour. These
include the rand, equity and capital markets,
which the report points out are still a cut
above the rest compared to many other
African nations facing liquidity constraints.
Morocco retained its third position for
a third consecutive year, benefiting from a
greatly enhanced operating environment
brink of disaster if it continues to depend on since the Arab Spring which began in
its current economic fundamentals and does 2010.
not usher in economic diversification. This Surprisingly, Ethiopia, a country dogged
involves understanding the need to adapt by socio-political instability, displaced
to the prolonged slowdown in commodity Ghana to take fourth spot, mostly because of
prices and sluggish levels of production its rapid economic growth, having brushed
growth. past Kenya as the largest economy in East
Some countries have been more nimble Africa, according to the report.
and effective than others in managing short- Ghanas slide to fifth position was mostly
falls, explains Nema Ramkhelawan-Bhana, due to perceptions of worsening corruption
RMB Africa analyst and an author of the and weaker economic freedom.
report. But major policy dilemmas have Kenya came in at sixth position. Accord-
ensued, forcing governments to balance ing to the report, despite being surpassed
The research shows, furthermore, that economically prudent solutions with what is by Ethiopia, investors are still attracted by
Uganda is steadily closing in on the Top 10 politically palatable. Kenyas diverse economic structure, pro-
though market activity is likely to remain RMB Africa analyst and co-author of the market policies and brisk consumer spend-
subdued after a tumultuous 2016 marred by report Celeste Fauconnier adds that over the ing growth. At the same time, the report
election-related uncertainty, a debilitating past three years, some African governments found that a host of business-friendly
drought and high commercial lending rates. have had to implement deep and painful reforms aimed at rooting out corruption and
Rwandas re-entry is the more dramatic budget cuts, announce multiple currency steady economic growth helped Tanzania
because, according to the report, market size devaluations and adopt hawkish monetary climb by two places to number seven.
is a key consideration in the reports compi- policy stances - all as a result of a significant At number nine, Tunisia has made great
lation methodology. drop in traditional revenues. strides in advancing political transition,
The report, for example, points out that The last three years have sounded an according to the report. An improved busi-
countries like Botswana, Mauritius, and alarm, amplifying what is now a dire need ness climate has also been achieved by struc-
Namibia that are widely rated as invest- for the economies of Africa to shift their tural reforms, greater security and social
ment grade economies, do not feature in the focus from traditional sources of income to stability.
reports Top 10 mostly because of the rela- other viable alternatives, says Neville Man- Cote dIvoire slipped two places to take
tively small sizes of their markets. dimika, RMB Africa analyst and contributor up the tenth position, while Algeria slipped
to the report. Another RMB Africa analyst from tenth to fifteenth place.
Brink of disaster and co-author, Ronak Gopaldas, emphasises Although its business environment
Generally, the report notes: From a that there is no quick fix to infuse into such scoring is still relatively low, its govern-
global perspective, African countries are still a complex situation. Gopaldas expects tra- ment has made significant strides in
at the lower end of the global-performance ditional forms of revenue to remain a reality inviting investment into the country lead-
spectrum, which continues to be dominated for many years to come. ing to a strong increase in foreign direct
by the US, UK, Australia and Germany. According to the report, Rwandas re- investment over the years resulting in
One of the conclusions of the report is entry into the top 10 was helped by being one of the fastest growing economies in
that Africa could find itself hovering on the one of the fastest reforming economies in Africa, states the report.
Sept 22 - 28 , 2017 15
Rwanda
By Independent Team
When a team of young debaters
from Rwandas Gashora Girls
Academy of Science and
Technology (GGAST) lifted the
winners trophy at the inaugural
Africa Debate Championships in
Kampala on Sept.18, all attention
shifted to how they do it.
G
ashoras win took many by
surprise because Rwanda is not
known to be strong at speaking
English; the language of the
debate. Also, these were girls; another
usual handicap in the debating arena
according to the stereo-type. Finally,
these were science students; often taking
pride only in calculating numbers and
letting them speak.
So when Natasha Teta Semwanga
scooped the Best Speaker accolade,
Sylvie Mahoro Wairimu emerged best
country speaker, and Nikitah Isabella
emerged 3rd best speaker, the audience
at the International Conference Centre
in Kampala paid attention. They are all
students of science course like physics,
biology, chemistry, and of course the The winning team in Kampala/Courtesy photo
shine in debates
community and South Africa and
Zimbabwe from the South, where
English has a longer history of being
spoken.
Gashora Girls Academy of Science and
Technology (GGAST) is a private upper-
secondary girls boarding school located
in Bugesera District to the south of the
Spotlight on Rwandas school for
capital city of Kigali. It has only been in
operation for six years.
girls that shapes champions
Unknown to the many people in
the audience, Gashora Girls Academy, combination they will study for three critically and speaking eloquently to
actually have a history of winning years. convince listeners. Learning in a socio-
debates. The school, for example made Currently we offer the combinations economically diverse school could also
history by being the first all-girls school which include physics, computer be an advantage, according to the school.
to win Rwandas annual National Youth science, biology, mathematics, chemistry, The school is private and is affiliated
Entrepreneurs Debate Competition. engineering, and geography, according to renowned international organisations
Part of the winning streak is a result to the school website. But all students like Microsoft, Segal Foundation,
of the schools approach to teaching and study English in addition to their Newmans Own Foundation and more.
learning. combinations.They also have a strong According to the school, 100% of all
Gashora admits students starting at tradition of debating and seminars. students receive financial aid on a sliding
Senior 4 for a three year course designed The debating club has been the leading scale depending on their familys needs.
to start at the equivalent of the 10th club in the school with almost 80% of Many of girls pay less than what they
Grade (Sophomore) in U.S. to the Senior the S4 students registered under this would pay if they attended a government
year when they are about 17 to 18 club. They are trained in eloquence and school.
years old and are ready to enter higher fluency, superb speaking, and other The school is part of the Rwanda
education; including vocational schools, debate skills. Girls Initiative (RGI) was founded by
colleges, and undergraduate university Soon, the girls who are enrolled from Shalisan Shal Foster and Suzanne
study. most of Rwandas 30 Districts and Soozi Sinegal McGill, with the vision
Once in the school, the new S.4 often include foreign students from of helping children for whom education
students spend at least one week taking say Burundi and Somaliland, are soon is not easily accessible.
all our subjects before they select the experts at thinking and analyse facts
16 Sept 22 - 28 , 2017
News analysis
Maize
worm
worries
Fall armyworms
are back, but
governments
help isnt
T
By Andrew S. Kaggwa
Sept 22 - 28 , 2017 17
News analysis
18 Sept 22 - 28 , 2017
News analysis
when there was a heavy infestation of the When contacted about the escalating about 2,000 different plants, when maize is
worm, farmers were being advised to spray prices of pesticides and Striker being out of off season it feeds on the other species as it
two times a day (both morning and eve- stock in many agro vet shops on Sept. 14, lies in waiting for its best dish of maize.
ning). This would mean for the two days Ssempijja said he would return to the three Also according to Gombya reports they
a farmer with three acres of maize would companies which his ministry last year have so far got from the farmers are that the
spend Shs148,000 on the pesticides alone recommended to import the pesticides with worm is now attacking maize a few weeks
without the labour and other inputs like the questions. after germination whereas last time it was
pump and water. But for the farmers who suffered with attacking maize starting at about 8 weeks
There are several other brands of chemi- controlling this worm last season when old.
cals that Ddumba could opt for. Some of Ssempijja said he had a Shs4.5 billion bud- Gombya advises farmers to plant their
them are cheaper. And a few are said to get to fight the armyworm but ended up maize in straight rows and columns to
offer some protection. But they are a big distributing only a few litres, there is little enable them regularly check on it for any
gamble because the market is also flooded faith in the government offering any help. early signs of the attack of the fall army
with fakes. Other than Uganda, by April last year, worm.
In May last year at the height of the initial the outbreak of the fall armyworm had He explains that one of the signs is maize
fall armyworm attack there were reports of been confirmed by the Food and Agricul- leaves that looked punched with holes and
fake Striker and Rocket drugs being sold; tural Organisation (FAO) in 20 other African flour like yellowish substance which are the
especially in the Container Village, the hub countries including Nigeria, Togo, Zambia, droppings of the worm. He recommends a
of the countrys agro vet shops in Kampala Zimbabwe, South Africa, Mozambique, spacing of 30 by 75cm if one is planting one
city. When asked whether the ministry had seed per hole or 75 by 60cm if one is plant-
opened up the importation of drugs to fight ing 2 seeds per hole.
the army worm in the new season, Ssempi- He warns farmers not to use the big dos-
jja said they have not added to the original The fall army worm feeds age of pesticides they were using for the
three and other agro vet dealers have to grown up maize last season as it may scorch
buy from the three they recommended last on 80 different species, the young and tender plants. He says, for
season. which could mean about instance, if a farmer is using Rocket, which
2,000
Still, apart from the drugs recommended is one of the drugs approved by the Agri-
by Agriculture ministry, there are other culture ministry to kill the worm, they
companies advertising other pesticides they should mix 10mls in a pump of 20 litres of
say fight the fall armyworm. With Striker, water.
one of the recommended pesticides to con- As the crops grow older and stronger a
trol the worm being in short supply, it will
different plants, when farmer may increase the dosage of the pes-
not be long before the fraudsters are back maize is off season it feeds ticide as by that stage it can withstand the
with the fake products. on the other species as it strong pesticide, Gombya says.
Some smaller scale farmers are opting for Gombya also advises farmers to destroy
exotic interventions. One woman, Agnes lies in waiting for its best all the remnants from the harvest of last
Nakintu, a resident of Katadde village in dish of maize season by burning them or burying them
Wakiso District says she has successfully deeply as they may contain eggs of the fall
used a mixture of wood ash and pepper to armyworm and leaving them in the garden
kill the fall armyworm. Nakintu also says may lead to a new attack as soon as the
she has noted that her local chicken as well new maize germinates.
as weaverbirds hunt for the worms in the Use of fertilisers right when one is
maize. planting the seed and afterwards will give
In Luweero, the District Production Man- the maize strength to even withstand the
ager, Andrew Kidda Makubuya, says some attack by the fall armyworm or the side
farmers have resorted to using of paraffin effects of the pesticides, Gombya says.
to fight off the warms and other caterpil- The Mukono District Agricultural Offi-
lars which have invaded the counties of Namibia, Rwanda, Ethiopia, Tanzania and cer, Steven Mukasa Mabira, says another
Kikyusa, Butuntumula, Zirobwe, Kamira Kenya. It was last reported in South Sudan way of controlling the fall army worm is
and Katikamu. in June. to practice crop rotation where the farmer
The Luweero district entomologist, Hen- But unlike Uganda, countries with a does not use the same piece of land where
ry Lule, explained that the increased num- functioning Integrated Pest Management he planted maize last season for the next
ber of caterpillars in the district is partly due (IPM) system like South Africa, where pest season. Since the larva stage of the worm
to the sudden change and imbalance in the outbreaks are detected early and dealt with, also burrows deep in the soil tilling where-
ecosystem which has seen the migration of were able to control the worm. by the soil is turned upside down may also
birds from these areas due to human activi- interrupt the stage of the worm, Mabira
ties and change in weather patterns. Tips new planting season advises.
We have noted the disappearance of As the farmers plant, Joseph Gombya, an Like Gombya, Mabira also tips farmers
birds in many parts of Luweero yet these extension worker with Nsanja Agro Chemi- to walk through their maize plantations
birds feed on caterpillars. The birds disap- cals which is one of the three companies regularly and, if they notice any sign of the
peared because the trees on which they use approved by the Ministry of Agriculture to fall army worm attack, to spray the maize
to perch were cut down, Lule was quoted supply pesticides to control the fall army with the approved pesticides.
in a news report in August. worm, says report are that the worm is now Mabira also advises farmers to spray the
However, exotic methods might not work attacking maize a few weeks after germi- maize very early in the morning or late in
for big farmers who have more than an acre nation whereas last time it was attacking the afternoon when the worm gets out of
of maize. Besides the birds after eating the maize starting at about eight weeks old. hiding to feed. The pumps should be point-
armyworms may turn on the maize which He said because the fall army worm feeds ed in the funnel shape of the leaves because
means it cannot be a viable alternative. on 80 different species, which could mean thats where the worm hides.
Sept 22 - 28 , 2017 19
comment
By Seth Trudeau & Keno Omu
Unprepared graduates
Why we are at a unique moment where Africas
university model requires a rethink
A
cross Africa, students arrive on giant leap forward in our understanding repeat information. Researchers such
campuses full of hope that a of how the brain works and how people as Nobel Prize winning physicist Carl
university degree will improve learn. These developments have radically Wieman have shown that this is one of
their lives. The reality is far less altered the way we think about higher the least effective ways of learning.
certain. education. Effective learning takes three things.
In 2014, a British Council study In the traditional university model, First, students must be able to reflect on
estimated Nigerias graduate learning meant access to information what they are learning. Reflection helps
unemployment at 23.1%. In Kenya, and knowledge, education resources and students assess what they know and
it takes an average of five years for a teaching expertise. Today, technology what they dont. It also helps them to
graduate to find a job. Yet business has made it easier for anyone to get integrate new ideas and concepts into
leaders frequently say there are jobs information, knowledge and learning their body of knowledge. When students
just a lack of skilled talent to do them. resources. reflect, they strengthen the neural
How can this be? The advantage retained by the pathways in their brain, and build new
There are two commonly cited traditional university is in producing pathways that link information that was
explanations. The first is that financial, and organising knowledge. But academic previously not associated. These links
human capital and infrastructure researchers form a very small percentage enable critical thinking.
constraints have a negative impact on of the knowledge workers needed in the Second, true learning happens when
the range and quality of skills students information age. students stop being passive recipients
graduate with. The second is the Universities need to rethink their of information and become active
disconnect between what universities approach to learning if they are to experimenters. When students take an
teach and the skills needed in the market. produce people with the critical thinking, active part, they take responsibility for
However, another more fundamental leadership, collaboration and problem the results and ensure that learning is
explanation has to do with how students solving skills needed for modern life. relevant to them. They develop habits
are educated, irrespective of what they Learning in many African universities that help them learn later in life, such as
study or the resource constraints they still happens in large lecture halls and self-regulation, motivation, and curiosity.
face. How students learn matters to rewards the ability to remember and Third, learning happens when students
employers because it shapes how they apply new concepts or skills. This is
think and what they do at work. the most natural test for a students
A growing number of employers are comprehension of what they are
no longer looking for graduates with the studying. Doing something, receiving
most impressive degree certificates. In
fact, trailblazers like Ernst & Young have Third, feedback about it, refining the approach
and then doing it again also builds
removed degree classifications from their
entry requirements because they do not
learning neural pathways for retrieval and
association.
believe that academic success is always a
sign of professional success.
happens Universities are the planning stage for a
societys aspirations. African universities
skills
to real problems. These abilities depend
more on how they were taught than Seth Trudeau is Director of Learning,
what they learned. African Leadership University & Keno Omu
We are at a unique moment in the is Engineering Curriculum Designer and
history of education. Information was Faculty, African Leadership University
once scarce but is now everywhere. In
the last 15 years, we have also made a
20 Sept 22 - 28 , 2017
comment
By Stuart Oramire
Debating without decorum
What happened to restraint and courtesy
in Ugandas political debates?
A
few days ago, I watched the retains a popularity that may keep procedures are adhered to. If there
Fourth Estate, a weekend him in office beyond 2021. was any mischief or oversight on the
talk show on NTV. It was The other counter-narrative part of the framers of the 1995 can
total mayhem that even a being peddled by a few is that any establish, declare and then remedy.
seasoned journalist like Joel Senyonyi amendment of Article 102(b) will Folks; mainly on various social
failed to reign in his guests who were erode the only remaining safeguard media platforms, are even now using
mostly members of Parliament. They and beacon of the sovereignty of the un-sanitised words like rape and
were debating Article 102(b) of 1995 people and the supremacy of the defilement of the constitution. This
Constitution now dubbed the Age 1995 Constitution. Such reasoning is wrong because no law has been
limit debate. Such animated political is narrow and simplistic. One of infringed. As important stakeholders
discussions have become the order of the rules of interpretation of the in the management of our country,
the day. Most are now characterised Constitution is that it must be read as we-the citizenry have an imperative
by heckling, abuses, intimidation, whole and not one part in isolation role to play; especially regarding
character assassination, intolerance, of the other. Therefore, the claim that the leaders we send to represent us
and threats. the framers of the constitution never in Parliament and beyond. These
Interestingly, it is a few rowdy and entrenched Article 102(b) is negated representatives are the anchors of
loud voices that seem to have taken by Chapter 18 and specifically Article the aspirations and interests of the
an upper hand. 260 of the 1995 Constitution that electorate in Parliament.
In civilised societies, people more provides for articles that require It is, therefore, cowardly and callous
so the elite, debate even the most amendments by way of a referendum. to threaten and blackmail Members
emotive and contentious issues with The framers of the Constitution of Parliament and other Ugandans
a degree of respect and tolerance perhaps envisaged no harm in for their beliefs and the political
despite divergence of opinion. Parliament amending sections of choices they make. The only concern
The right to an opinion, however the Constitution so long as due should be that no law is violated.
unpopular, is a constitutional right regard to the legal and constitutional Conducting ourselves otherwise is
under Article 29 of the same 1995 a recipe for instability. The people
Constitution. More so, we cannot threatening others are protected by
all always view things with the the inalienable rights guaranteed by
same lenses. There will always be
divergence of views in a fairly open One of the the same constitution. Social cohesion
and political stability can only thrive
country like Uganda. We need
therefore to exercise restraint and rules of in an environment where tolerance
and respect of each others opinion is
tolerance when debating issues;
however emotive or topical the
interpretation of exercised, however divergent.
discussion is.
Again- I have seen a section of
the Constitution Stuart Oramire is a lawyer and Human
Ugandans employing cowardly
tactics and rhetoric of blackmail to
is that it must be Rights Advocate.
[email protected].
threaten proponents of the alleged
proposed amendment of Article
read as whole
102(b). To hurl insults and threaten
to campaign against Members of
and not one part
Parliament who support the lifting in isolation of
the other
of age limit is an empty counter-
narrative to the position of its
proponents. These claim that their
opponents are running scared of their
perennial flag bearer who seemingly
remains a force to reckon with and
Sept 22 - 28 , 2017 21
O
By Julius Businge
22 Sept 22 - 28 , 2017
business
Sept 22 - 28 , 2017 23
Executive Style
How has been the performance strong enough to drive growth in the that theres no sufficient demand to
of stock market in the past eight companies to report better profits to buy or the activity in the economy to
months ending August compared offset investing in government bonds. drive these businesses is low. On the
W
with the same period in 2016? Most of the counters have experi- other hand, banks have performed
e are down by about enced either a flat or drop in well but most investors know it is cy-
50% to Shs69bn as turn- pric- es showing clical. It is as a result of high interest
over compared with rates last year that ultimately resulted
Shs123bn recorded in into the better performance. And so
the eight months to August 2016. the interim or the medium term in-
This is because of investor flight. vestors are not guaranteed of returns.
We have seen investors most espe- As a consequence, most investors are
cially foreign, reduce their invest- taking the approach of wait and see
ment on the market while locals, or hold.
who are mainly funds, holding on
their shares. What is interesting is Based on that performance, what is
that with the interest rates coming the outlook this year?
down, we would have expected I think over the next coming
more investors coming on to the months, we wouldnt expect a large
stock exchange but that has not increment. We would probably have
been the case. This means a drop in the overall turnover, year-
that investors are look- on-year, estimated a 20-30%. We still
ing at the economy expect that once Umeme (electricity
as not being distributor) provides its performance
and all companies submit their half
year results, we would see ac-
tivities resume. The periods
between October and December
are normally active. The Dfcu
rights issue should also
bring some activities on
the Dfcu counter that
has been decimal.
One of the things
we had antici-
24 Sept 22 - 28 , 2017
pated at the beginning of the year
was more companies using the stock USE market turnover, ket. What is your response to this?
There are different ways of at-
market to rise more capital but that
has not been the case. Most of them share volume & market tracting companies to come and
list on USE. We have two market
are in the pipeline and again, they
are still working on improving their capitalization for past 5 years segment one that has very mini-
governance structures to be able to mal requirements and that is the
Year Turn Over Share Market Growth Enterprise Market Seg-
come to the market. (Shs bn) volume capitalization
(millions) (trillion)
ment and the main market that is
It is nearly four years since you last stringent.
had a listing. Why are there no new 2012 200 1, 318 19 Now, many of the investors we
listings anymore? have met say, yes we have made
2013 333 2, 436 23 some money and we also have our
I would say there are bigger is-
sues. When a company is coming to 2014 310 1, 848 26
businesses. How shall we benefit
the market, there are a lot of things with sharing our companies? They
that need to be put in place. It needs 2015 187 1, 763 24 feel that theres no incentive.
to have a pre-IPO preparation. Also, The funding structure in Uganda
there are whole lots of regulations 2016 273 1, 477 20 is a bit complicated; everybody is
that a company needs to follow be- playing in the short spell. The long
cause it will be dealing with public Source: USE and CMA term fund managers with long term
funds. assets are always putting their in-
In addition, the company owners vestment in the short term because
need to ensure that they are better the government is always issuing
prepared and have good struc- treasury bills and bonds for mon-
tures. Now, a lot of these take a etary policy. Everybody is invest-
shareholder and board of directors ing in that space and they are fairly
decision, who in many times tend We are down by getting a good returns of 12-16%.
Now, the companies that need
to change their minds.
about capital at this point in time are not
50%
We also have competition from
private equity funds, who tend to using the market because they have
give loans to the companies within issues. In addition, a lot of our
three to six months in exchange businesses are family owned, and
for shares. But coming to the stock one of the challenges for such com-
market takes probably longer be- panies is that to become a listed
cause one need to come when they to Shs69bn as company, they have to open up.
are well prepared.
To make the situation even
turnover compared For instance, the chairman cannot
be the chief executive officer, have
worse, good companies are already with Shs123bn non-executive directors, which the
owners are not willing to surren-
owned by international firms which
are listed on other markets. We recorded in the der. However, we are still telling
have received two applications to
list on the stock market but applica-
eight months to companies to approach USE when
they are growing because that is
tion is one thing and meeting the August 2016. when people will have interest in
criteria is another. them. We do quite a lot of meet-
ings, gatherings with the investors
Given that share prices on the and so are other stakeholders like
counters has either dropped or re- brokers to talk to companies.
mained flat, what does that mean
to prospective investors? What is the future outlook of the
The share prices have been like How far has the Kenyan election stock market?
that since last year and it has been impacted on the Uganda Securities The outlook is quite bright; we are
the right time for one to invest on Exchange? focusing a lot on technology/ innova-
the stock market. The share prices The impact of Kenyas election on tion and also creating awareness of
have been down, banks have been USE actually started in 2016. Usu- our products. I think theres a better
performing well and therefore one ally, investors tend to pull out their look to the stock market and we
would expect them to pay better money on the stock market a year are going to be able to grow. We do
dividends. We have seen companies before the general election. On the know some listings will come though
like Uganda Clays Limited report other hand, it has been the best time are taking longer. We are also in the
profits and paid dividend for the first to buy shares on the Kenyan market process of finalisation demutualisa-
time after many years. Looking at because stocks were as low as 40-50% tion getting out the mutual organ-
that, it is good time to buy shares on down in prices. isation and become a public limited
the stock market but it is also good company. That means that USE will
for one take advice from an invest- A section of the public think that now be a profit making company,
ment advisor to be able to get the you and your team as USE arent do- making us competitive. At the mo-
best deal because the performance of ing enough to attract new listings or ment, we are simply a regulator of
the economy tend to impact different stimulate activities on the stock mar- the market.
companies differently.
Sept 22 - 28 , 2017 25
Business
D
lin Uganda and AkzoNobel.
utch paints and Coatings Com- Last July, Sadolin Uganda filed an
pany AkzoNobel Coatings Inter- injunction in the commercial court against
national BV which owns Sadolin AkzoNobel to stop them from terminating
brand name in Uganda is locked a deal it had with Akzo Nobel saying the
in a battle for market control with Kansai move could hurt their business.
Plascon of Japan. It is not clear whether Sadolin Uganda
The case is before the commercial court was in talks with Kansai Plascon at the time
and details are scanty but experts say it and whether that sparked Akzo Nobels
could set a precedent locally for the transfer move against Sadolin Uganda. It is also pos-
of company assets of a franchisee, including sible Sadolin Uganda reached out to Kansai
the brand name, in case of a takeover. Plascon after relation with Akzo Nobel
The brand name fight started soon after soured.
Kansai Plascon announced in August that it In any case, in August, AkzoNobel won
had acquired Sadolin East Africa for about the court battle against the licensee paving
$125 million. A surge in paints and coatings way for it to engage freely with the market
demand on the back of middle class-driven to ensure that theres supply of Sadolin
construction sector growth has made the (L-R) Kansai Plascon East Africa MD Wim Bramer brand whose fate hangs in a balance.
Ugandan market quite attractive for manu- and Plascon Uganda MD Chris Nugent during a Kansai Plascon has already announced
facturers and until now, Sadolin has been a recent press conference in Kampala. plans to introduce new products, including
major player. an anti-mosquito paint and one that is more
When Kansai Plascon, which already washable and fire resistant. It has also add-
operates in Kenya and Tanzania with Plascon labels, he said adding, This behav- ed that it plans to invest in new technologies
exports to South Sudan, Burundi and Rwan- iour, amongst other activities, has left us into the US$10 million-plant at the Kampala
da, sought to enter the market, it appears to with no choice but to cancel the agreement Industrial and Business Park, Namamve,
have adopted a frontal attack approach to with immediate effect to protect our Sadolin enabling it produce high quality paint at an
annihilate the Sadolin brand. brand and ensure supply to the Ugandan affordable price. Kansai Plascon is already
Johann Smidt, the managing director for people. proclaiming that it command 60% market
AkzoNobel Decorative Paints in Sub-Sahara Schmidt says unlawful activities by share in Uganda. AkzoNobel and any new
Africa says, in accordance with the contrac- Kansai Plascon have caused recent market partner have a tough battle ahead to at least
tual agreement, Kansai Plascon was obliged disruption in supply of the Sadolin brand on match that rhetoric.
to manufacture, sell, market and advertise the Ugandan market. An almost similar case is playing out in
Sadolin brand until the end of January 2018. This has prompted us to engage in Kenya. The difference appears to be that
Instead, AkzoNobel says, Kansai Plascon conversations with a new partner, a partner Sadolin Kenya lost the right use the Sadolin
immediately announced that Sadolin is that meets the strict AkzoNobel and Sadolin name when Akzo Nobel cut them off.
migrating to Kansai Plascon. requirements and product quality stan- Akzo Nobel, which initially gave a one
The claims that Sadolin is migrating to dards. Much progress has been made in this year notice to Sadolin Paints East Africa to
Kansai Plascon are false and misleading respect, Smidt added. Meanwhile, Kansai an end on December 2019, moved it closer
the public as Sadolin has been owned by Plascon, appears to be playing a very well- to on February 1, 2018. Akzo Nobel also
AkzoNobel since 1987 and was never owned orchestrated market takeover game but they announced it would start manufacturing the
by the local licensee, Sadolin Paints East are keeping their moves secret. Sadolin products in Kenya.
Africa, Smidt told The Independent. When contacted, Kansai Plascon Manag- Akzo Nobel is said to be working with ICI
AkzoNobel, which is headquartered in ing Director in Uganda, Chris Nugent, told South Africa PTY, its South African subsid-
Amsterdam and operates in around 80 The Independent that he cannot comment on iary, to manufacture products in Kenya as
countries with Sadolin and Dulux being its the matter as he is out of the country. Akzo Nobel Kenya, a new company.
well-known brands, on Sept.13 cancelled the So far, he has only spoken to the Daily This led Sadolin Paints East Africa Limit-
licence agreement it had with Kansai Plas- Monitor, a local daily and even then stopped ed to sue Akzo Nobel seeking court to block
con citing breach of contract. merely at acknowledging that there is a fight it from soliciting for business from Sadolin
He says since Kansai Plascon acquired raging but the matter is in court for redress. clients in Kenya.
Sadolin East Africa, they engaged them to We dispute what they are doing and Under the deal with Akzo Nobel, Sado-
ensure that there is continued supply of there is a court case that was supposed to be lin Paints East Africa Limited had right to
the Sadolin brand to the market but that heard, he said. Regarding the demands and manufacture and sell products with the
AkzoNobel plan appears to have failed. actions of AkzoNobel, he said the court will trade name in Kenya, Uganda, Rwanda,
This responsibility has not been upheld determine whether they behaved legally Tanzania, Zanzibar, Burundi, South Sudan,
and actions by Kansai Plascon indicate or not. Ethiopia, Democratic Republic of Congo
deliberate breaches of the contract as evident Kansai Plascon appears to have either (excluding Kinshasa and Lubumbashi),
in the over-labelling of Sadolin packs with deliberately or inadvertently waded into a Somalia and Djibouti.
26 Sept 22 - 28 , 2017
Business
O
17 submitted applications for
n Sep 14, the Ugandan qualification.
government signed The government evaluated
a production sharing the submissions and recom-
agreement with the mended 16 companies to pro-
Australian Armour Energy Ltd ceed to the request for proposal
and issued a petroleum explora- stage, a phase which required
tion licence, the first under the applicants to carry out a num-
competitive licensing round for ber of activities that included
oil and gas unveiled two years visiting the data room, attend-
ago. ing a bidders conference and
The licence covers the Kany- carrying out field visits among
wataba Block, a 344 square others.
kilometres area, on the southern One of the major achieve-
fringes of Lake Albert near the ments from the licensing round
Democratic Republic of Congo. was the development of a state
The block was initially of the art data room to facili-
licenced to Total, Chinas Irene Muloni (R), the Minister of Energy and Mineral Development tate the first licensing room,
CNOOC, and Tullow but the and Roger Cressey, the CEO Armour Energy display a Memorandum of Kasande said adding, The
three firms, which are now over- Understanding certificate after signing the oil exploration licence on data room remains open to the
seeing the development phase of Sept. 14. INDEPENDENT/JIMMY SIYA industry to view and purchase
the countrys crude oil discoveries data, and will also be used for
reverted it to the government in 2012 after Australian oil and gas prospecting firm future licensing rounds.
failing to find oil. in the Kanywataba block. This follows an In the process, Kasande said the energy
Eng. Irene Muloni, the Minister for agreement that was signed recently between ministry generated $2.4 million from the
Energy and Mineral Development said the two entities. sale of data to bidders that was paid to the
the licence was given to Armour Energy in As such, Armour Energy plans to retain Uganda Petroleum Fund. This is in addi-
accordance with Section 58 of the Petroleum 16.82% while DGR will meet the tenement tion to US$316,000 that has been paid as
(Exploration, Development and Production) expenditure and work programme commit- signature bonus, research and training fees
Act, 2013. This is the legal regime under ments for the first two years and indemnify and annual acreage rental fees for the first
which I announced the first competitive Armour for these costs but until that trans- exploration period.
licensing round during February 2015, she fer is complete, Armour will hold DGRs Four bidders from a short list of seven
said during the signing ceremony at the 83.18% in trust, according to the Oil and Gas companies that had submitted proposals by
energy ministrys headquarters at Amber Journal, an international industry publica- the deadline of Feb. 26, 2016 emerged suc-
House in Kampala. tion. cessful and were selected for negotiations.
She said the sustained low oil prices had The tentative agreement shows that DGR They included; Walter Smith Petroman Lim-
played a role in the protracted negotiation. Global has agreed to spend as much as ited, Oranto Petroleum Limited, Armour
In 2014, the price of crude oil on the inter- US$837,000 for a performance guarantee, Energy Limited and Niger Delta Petroleum
national market stood at US112 but it is cur- US$442,000 to complete the grant of the Resources Limited.
rently trading at US50 per barrel on the back licence and $1.98 million for the first two The government has also reached an
of high production. years of the exploration programme. agreement with Oranto Petroleum Limited
Under the new PSA, Armour will pay Robert Kasande, the acting permanent for Ngassa Block and the PSA is set for sign-
royalty (8.5%--21%) based on the gross oil secretary at the Ministry of Energy and ing in three weeks time.
production in barrels per day. The agree- Mineral Development noted that since this The new PSA now adds Armour Energy
ment also has provisions for state participa- was the first competitive licensing round in Ltd to the three upstream licensees in the
tion while the cost recovery limit for petro- the country, the ministry undertook a com- country Total E&P BV, Tullow Uganda Pty
leum has been set at 65%. Other clauses prehensive process of approval of the blocks Ltd and CNOOC Uganda Ltd. Armours
in the agreement include; a performance for licensing as required by the Petroleum Chief Executive, Roger Cressey, said the
(Bank) Guarantee amounting to 50% of the (Exploration, Development and Production) exploration and development of oil in Ugan-
minimum exploration expenditure for the Act, 2013. da is a very exciting opportunity for us.
first exploration period ($990,000) and a This licensing round was based on data The government is currently in final prep-
requirement to train and employ suitably availability and prospectivity covering six aration for setting up various production
qualified Ugandan citizens. blocks with a total acreage of 2,674 square and transportation infrastructure ahead of
However, The Independent, has learnt that kilometer in the Albertine Graben. first oil production in 2020. So far, about 6.5
Armour Energy intends to work in partner- Kasande said a total of 19 potential bid- billion barrels of oil have been discovered,
ship with DGR Global Limited, another ders responded and picked the request for according to government officials.
Sept 22 - 28 , 2017 27
Business
S
senior economics lecturer at Makerere
hould the Uganda Development University Business School (MUBS) in
Bank (UDB) seek capital from the Kampala, says the more urgent question
government only? How should it about UDB should be whether there is
work around Ugandas short-term actually demand for long term financing.
investment culture? Should it operate like Nkote says development banks are the
a private sector bank or continue as the key for growth and describes how some
governments band-aid effort at mitigat- countries even have specific ones; an
ing market failures. industrial bank, an agricultural bank and
According to Ugandan financial sector more while others, like Uganda, have one
experts, answers to these questions are all-embracing development bank
becoming more urgent since two years You cannot finance long term needs
ago when President Yoweri Museveni with short terms loans, he says but a sur-
announced that UDB would be getting a vey is needed to establish whether there is
huge capital injection from the govern- demand for the much talked about devel-
ment but nothing has happened. opment financing.
In July 2015, there was wild cheering Does UDB, for instance, have more
at a UDB organized client engagement loan applications than they can give out?
forum, when Minister of Finance Matia UDB CEO Patricia Ojangole Are they oversubscribed? If their demand
Kasaija announced that UDB would get is Shs700billion and they only have 300bil-
US$1 billion. The bank was undergoing lion, that would be an issue, he says.
high-level rebranding at the time and Our bank is there to help government. Nkote says some people may be wor-
optimism was high because Museveni had Whatever we do must be a function of ried about UDB when in actual sense,
declared a month before, in a State of the government, he said. nobody is demanding for long-term loans.
Nation address, that it would be recapi- We have a strategic plan and we are UDB offers a wide array of loans; short
talised. The President, however, spoke of working within the National Development term, mid-term, long term, and trade
recapitalisation to the tune of Shs500 bil- Plan through priority sectors like value finance and equity investment. On its long
lion (US$137million) only. addition and primary agriculture. We are term loan portfolio, UDB states its purpose
So Kasaijas figure was jaw dropping looking at activities like milk production. Provision of long-term loans to finance
even by a politicians standards of lav- But some experts like Musa Lwanga, acquisition, construction, expansion, mod-
ish promises and a far cry from Musev- a research economist at Economic Policy ernization and installation of fixed assets.
enis promise. In spite of all this, Kasaija Research Centre (EPRC), says UDB should The bank is also meant to support infra-
received thunderous applause at the event not look at the government as the only structural development, industrialization
meant to foster relations between the bank source of financing. among other sectors.
and its customers. The contradiction of the Look at African Development Bank; it With the money UDB has received since
two statements, however, prompted spec- is not just financed by African countries the talk of recapitalization started, the
ulation in finance circles even back then. Is but by European partners and others from banks purpose looks out of sync. With this
there is a clear policy on stimulating UDB, the US. slow injection of capital, the banks role in
was the question. A development bank should be run on growth and development has come into
In his budget speech in June this year, business principles also. There should be a focus.
Kasaija said he had provided an additional level of business orientation because it is a Although the current consensus is that
Shs50billion to the bank in this current driver of growth, he says. UDB should fill gaps left by private finan-
financial year 2017/2018 bringing the total Lwanga says that if the government is cial institutions, which are often geared
recapitalisation so far to Shs150billion but the only financier of a development bank, towards commercial activities, former
the bank managers have a different story it may lead to political capture which is a president of the African Development
to tell. slow way of killing the bank. Bank, Donald Kaberuka, says develop-
But Board Chairman Samuel Sejaaka Lwanga adds that the slow pace of fill- ment banks should be managed on private
says the bank received Shs8billion in ing up UDBs coffers portends bad news sector basis.
2015, Shs4billion in 2016 and Shs17billion for the economy. They should not respond to market
in 2017. Total Shs39 billion. So should The incentives of the private sector failures. If a government wants to achieve
UDB not look for alternative sources of failed to align with those of the countrys certain objectives with development banks,
financing other than government which is development needs. The private banks the Treasury should pay for it, he said at
always cash strapped? have remained focused on short term a meeting of regional central bank gover-
Patricia Ojangole, the UDB CEO has loans, they remain skeptical about lending nors last year to mark Bank of Ugandas
been reluctant to publicly address these long term because of the risks, he says. 50 years.
questions. He says the current high interest rates A year later, the debate rages as the
I cannot comment on the issues, she should be the motivation for a strong unavailability of capital remains a key
curtly told The Independent. development bank as an alternative; espe- challenge for UDB.
But Sejaaka said UDB acts on the gov- cially in long term financing for agriculture
ernments bidding. and industry.
28 Sept 22 - 28 , 2017
Business
airlines assembly
RwandAir looks forward to welcome
airline top executives and other aviation
stakeholders to Remarkable Rwanda - the
land of a thousand hills, he said.
In addition to the provision of an excel-
November event expected to attract lent platform for brand visibility through
sponsorship, the General Assembly and
500 high profile delegates Summit of AFRAA will present exhibition
opportunities for aviation companies to
showcase their services, equipment, compo-
nents, supplies and IT solutions.
By Independent Team Africa. Annually, the AGA brings together Some of the confirmed sponsors include:
R
global aviation leaders and stakeholders Accelya & Mercator, Airbus, Amadeus, Boe-
wandas national flag carrier, to take stock of aviation milestones and ing, Bombardier, Embraer, Rwanda Civil
RwandAir, has finalised prepara- plan the future for the development of Aviation Authority, Nexus, RwandAir and
tions to host the 49th Annual Gen- African aviation, he said. The Secretary SITA.
eral Assembly (AGA) and Summit General was in Kigali on an advance visit RwandAir has one of the youngest fleet
of the African Airlines Association (AFRAA) to the event. He met various stakeholders on the African continent. But from its hub
this November. in Rwanda who looked forward to a suc- at the heart of Africa at Kigali International
The three-day event from Nov.12 to 14 cessful event in November. AFRAA and Airport, it has built a reputation for its
will be held in the prestigious Kigali Con- RwandAir teams are dedicated to ensure excellent on-time performance, customer
vention Centre in the capital Kigali. that delegates will experience yet another service and safety, and. With a fleet of 12
Up to 500 high profile delegates from the memorable AGA this year, he said. aircraft; including two wide-body Airbus
aviation industry in Africa, Europe, Middle The African Airlines Association A330 acquired last year, the airline currently
East, Asia and North America are expected (AFRAA) is a trade association of airlines reaches out to twenty-three destinations
to attend. from the member states of the African across East, Central, West and Southern
The AFRAA AGA will be attended by Union (AU) with headquarters in Nairobi, Africa, the Middle East, Europe and Asia.
Chairmen and CEOs from African airlines, Kenya. Its primary purpose is to foster com- This year, RwandAir started flights to
ICAO, IATA, AFCAC, civil aviation authori- mercial and technical co-operation among Mumbai, Harare, London (Gatwick) and
ties, airport companies, air navigation African airlines and to represent their com- Brussels. RwandAir introduced flights to
services providers as well as aircraft and mon interests. Abidjan, Libreville and Brazzaville from its
engine manufacturers, component suppli- Its membership of 37 airlines cuts across new hub in Cotonou and will start opera-
ers, and many other service providers. the continent and includes all the major tions to Bamako, Conakry and Dakar from
The AFRAA Secretary General, Elijah intercontinental African operators. The the same hub by the beginning of October
Chingosho, told journalists in Kigali on Association members represent over 85% of this year. Later this year, the airlines ever
Sept.18 that the AGA will discuss issues on total international traffic carried by African growing network will spread to Guang-
the development of air transport in Africa in airlines. Chance Ndagano, the president zhou and in 2018, RwandAir plans to enter
general and development opportunities for of AFRAA who is also the acting CEO of the American market with flights to New
African airlines in particular. RwandAir, told the journalists that host- York, in the USA.
The AFRAA AGA is the premier gather- ing such an event was a great opportunity
ing of senior global aviation executives in and he thanked AFRAA for it. He said the
Sept 22 - 28 , 2017 29
Business
Banking AVIATION
Standard Chartered Bank in new services deal with MTN KLM outs WhatsApp
S business account
tandard Char- bank for our customers
tered Bank and and this commitment is
MTN Uganda reaffirmed by the launch Royal Dutch Airlines KLM and What-
signed an agree- of the Straight2Bank sApp are offering customers around the
ment on Sep 14 to allow Wallet Collections solu- world booking confirmation, check-in
MTN Mobile Money tion, he said. We will notification, boarding pass, flight status
collections for corporate continue to invest in tech- updates and asking questions in 10 differ-
and business clients di- nology to keep pace with ent languages using a verified WhatsApp
rectly into their Standard local and global develop- business account, according to a press
Chartered Bank accounts ments. Wim Vanhel- notice issued on Sept. 08.
on a real time basis. This leputte,the CEO MTN I am very proud that KLM is the
solution dubbed Straight- Uganda said since incep- worlds first airline with a verified What-
2Bank Wallet Collections tion, MTN Mobile Money sApp account; this unique partnership
will be delivered through has played a remarkable with WhatsApp underlines our position
the Banks Straight2Bank role in fostering financial as an aviation pioneer, said KLM Presi-
electronic banking plat- inclusion in the country. dent and CEO Pieter Elbers. He said this
form. Albert Saltson, the He said the platforms is a major next step in their social media
Banks CEO said the col- service offering has strategy. The service is available to custom-
laboration with MTN will undergone several ers who book tickets or check in via KLM.
enhance the Banks client modifications to include com and opt-in to receive information via
proposition and ability bills and taxes payment, WhatsApp. Customers can also directly
to extend its world-class purchase of goods and contact KLMs social media service agents,
Standard Chartered Bank Speke Road
financial services to cli- services, defied existing branch, Kampala.
24/7, via the platform. The service comes
ents countrywide. geographical borders to in handy as the Airline grows its social
One of our strategic enable customers to send media population noted as over 25 million
aspirations as the Bank and receive money inter- fans and followers on various social media
is to be the main digital nationally in real time. platforms.
INSURANCE ICT
IRA sets guidelines for TerraPay to serve Uganda and South Africa
bancassurance in the new expansion
The Insurance Regulatory Authority has set South Africa will soon from South Africa to tomers to send and receive
Bancassurance guidelines, 2017, paving way for be accessible for Ugandans mobile wallets in Uganda, money real-time. How-
licensing of bancassurance agents, according through a money transfer Zimbabwe, Nigeria and ever, it does not directly
to regulators communication officer, Mariam network being offered by Mozambique. serve end consumers. It
Nalunkuuma. Bancassurance is about commer- TerraPay. The company is said works with mobile pay-
cial banks offering insurance products to their This follows the South to have already received ment solution providers
customers on behalf of insurance companies. It is African Reserve Banks approval from Bank of like MTN Mobile Money,
hoped the move will deepen insurance penetra- approval of an application Uganda. TerraPay pro- Airtel Money, M-Pesa,
tion in Uganda currently noted at around 1%. by the Indian company, vides inter-operability Tigo Pesa and to ensure
The applicants are required to issue a resolution to allow money transfers facilities that enable cus- transfers are made.
of the governing body of the financial institution
and a letter of no objection issued by the Bank ICT
of Uganda. The Bancassurance agency is also
required to secure an agreement with insurers
they will be dealing with. A minimum of three
DPO receives payment card security standards
non-life insurers and two life insurers shall be Kenyan-based online store, process or trans-
required. Under the guidelines, the agent may payment service pro- mit cardholder data or
develop or package insurance services with the vider, Direct Pay Online sensitive authentication
insurer specified in the agency agreement. The Group has received the data. The certification
agent shall provide all information to the prospec- Payment Card Industry is administered by
tive policy holder for the proper understand- Data Security Standard thePCI DSS Coun-
ing of the services offered by the agent. (PCI DSS) Level 1 cer- cil,which was founded
On policy issuances, the insurer shall be tification in 12 African by Visa Inc, Master-
required to issue a non-life insurance countries. Card Worldwide,
policy within 10 working days from This follows successful completion American Express, Discover Financial
the date of payment of premium of comprehensive audits in the Groups Service and JCB International. The solu-
whereas a life policy shall be issued global headquarters and all its other mar- tion features real time monitoring, fraud-
within 20 working days from date kets including Uganda, Kenya, Tanzania ulent patterns detection, scoring module,
of fulfillment of all the underwriting and Rwanda. PCI DSS is the highest blocking and blacklisting. This is also
requirements. privacy and security standard in the pay- supported by a 24-hour fraud prevention
ments industry and applies to entities that team that monitors real time transactions.
30 Sept 22 -IRA
28Boss
, 2017
Kaddunabi Lubega
Business
Hima Cement changes
tack to grow sales
By Julius Businge cient construction.
L
We recognise that building
afarge Groups subsid- is a complex and stressful pro-
iary in Uganda, Hima cess and that is why the main
Cement, seems to be objective of these service centers
looking at various inno- is to guide people in their con-
vations to drive its growth sales struction projects, Mirembe
ahead of the anticipated stiff said, adding, Our goal is to
competition in the countrys deliver a range of building solu-
cement industry. On Sep.14, tions through multiple channels
the company started rolling out to meet the various needs and
its franchise firm, Bonastore, lifestyles of our customers.
in partnership with owners of She added the new innova-
hardware shops to offer cus- tion is expected to also drive up
Elly Twineyo Kamugisha, the CEO Uganda Export Promotion Board tomers advice such as architec- Hima Cement sales. This new
speaking at the 1st innovation series event on packaging for the 21st tural support, finance and credit development comes at the time
century customers on September 13 at Africana. He said packaging advice, contractor and material the countrys cement industry
will keep you in the market or take you out for its the identity of ones sourcing and bill of quantities. seems to be heading for tough
business, therefore packaging must be very appealing to your target The franchise firm also times as firms increase produc-
consumers. INDEPENDENT/JIMMY SIYA consists of retail network for tion capacity next year beyond
construction material makers the available demand.
including Roofings Uganda Currently, the countrys
Limited as the steel partner, cement firms Hima, Tororo,
Regal Paints for paint and Total Kampala Cement and the
Uganda as the provider of solar Kenyan-owned National
lamps, aimed at serving end- Cement are expanding their
users, self-builders and masons plants, a move that could see
countrywide. their production increase from
Sophie Mirembe, the com- 3.6million tonnes to 6.8mil-
panys channels development lion tonnes per annum amidst
manager, said the centers demand that stands at merely
would help the ordinary person 2.4million tonnes annually.
to build better by providing Hima Cement has already
a range of services that will rolled out Bonastore franchise to
streamline the building process, 20 locations.
ensure speedier and more effi-
John Paul Okwi, the president Uganda marketers association briefs the
media at the marketers fireplace event at Serena hotel on September 15. He
urged SMEs to take on the marketing strategies to suit in the market and be
competitive. INDEPENDENT/JIMMY SIYA Weekly share price movement (Sep 15))
Security Sep 15 Sep 08 Movement
BATU 30000 30000 30000
BOBU 110 110 110
CENT 1,460 1,465 1,465
DFCU 754 759 759
EABL 8,708 8,685 8,685
EBL 1,364 1,396 1,396
JHL 16,751 16,603 16,603
KA 159 155 155
KCB 1,469 1,474 1,474
NIC 12 12 12
NMG 3,917 3,907 3,907
NVL 538 538 538
SBU 27 27 27
UCHM 135 140 140
Michael Werikhe (C) State minister of energy and mineral development gives
a plaque to Julian Omalla, (2L) CEO Delight Uganda limited and her family UCL 15 14 14
after she emerged champion winner for community best category at PSFU UMEME 451 451 451
offices. INDEPENDENT/JIMMY SIYA ALSI -- -- --
Sept 22 - 28 , 2017 31
12 strategies for health
Lancet report shows the path to healthier
lives for Africans is within reach
T
By Alex Ezeh, Nelson Sewankambo & Peter Piot
32 Sept 22 - 28 , 2017
health
a 10 to 20-year strategic plan for national By Raj Persaud and Adrian Furnham
health research. This should be coupled
with a financing strategy for creating and
strengthening departments and institutions
responsible for all areas of research.
How much sex
Increase research and development fund-
ing to at least 1% of GDP and to allocate at
least 2% of national health expenditure and
makes us happy?
at least 5% of external aid for health projects
and programmes to research and research
Sex is like money, but these
capacity building. experts explain exactly how
Invest in internationally competitive
S
centres of scientific excellence and expand
post-doctoral programmes to raise the qual- ex is like money, John Updike that happiness is positively correlated with
ity of higher education and research. wrote, only too much is enough. ones own sexual frequency, but negatively
Expand research and education col- As it turns out, that is not strictly correlated with the sexual frequency of oth-
laborations, particularly within Africa, and true, at least not in the context of ers.
reshape international research partnerships monogamous relationships. So how much But, beyond a certain point roughly once
around mutual agenda setting and benefit. sex is enough? In 2015, a group of University per week, apparently the benefits that a
Academic institutions in sub-Saharan of Toronto-based psychologists set out to couple derives from sex wane. This suggests
countries to invest in the development of find out. In their study, Sexual Frequency that there is more to the relationship between
contextually relevant health sector gover- Predicts Greater Well-Being, But More is Not sex and happiness than keeping up with the
nance and leadership programmes. Always Better, Amy Muise, Ulrich Schim- Joneses. And, in fact, by putting pressure on
Finally, the report recommends that mack, and Emily Impett revealed that there couples to have sex as often as possible, the
international agencies should support the is, in fact, a precise rate of sex that, for the sense of competition may be doing more
strengthening of higher education and average couple, optimally benefits the part- harm than good.
research institutions by incorporating core ners wellbeing: once per week. A recent study More Than Just Sex:
funding and removing arbitrarily low caps The study found that the difference in Affection Mediates the Association Between
on overheads on project grants. wellbeing for people in relationships who Sexual Activity and Well-Being offers a
engage in sex once per week, compared novel theory regarding the link between sex
Research collaboration with those who have sex less than once per and happiness. Its authors Anik Debrot,
With the lack of critical mass of skilled month, was greater than the difference in Nathalie Meuwly, Amy Muise, Emily
researchers in many African countries, wellbeing for those earning $75,000 versus Impett, and Dominik Schoebi contend that
strengthening regional research collabora- those making $25,000. In other words, hav- the true power of sex in a relationship lies in
tion could be a strategic priority for the ing sex four times as much boosted par- the capacity of sex to foster a stronger con-
region. African countries could consider ticipants moods as much as an additional nection between partners through shared
creating a basket of funding for research $50,000 per year would do. affection, not just shared pleasure.
which countries could contribute to. But, just as having sex too infrequently The authors even suggest that sex and
Researchers within the contributing coun- can leave couples less happy, having sex too affection could compensate for each other in
tries would then compete for funding from frequently can end up being more stressful supporting wellbeing, with increased affec-
the pool. Development partners can be than pleasurable, particularly if busy couples tion counterbalancing reductions in sexual
invited to provide matching funds thereby feel under pressure to do so. Yet such pres- activity during some life phases, such as just
increasing the size of the basket. sure stemming, at least partly, from social after childbirth a period sometimes associ-
The African Development Bank or some expectations and comparisons is very real. ated with higher risk for infidelity in male
other continental body could centrally The University of Colorado sociologist partners. The idea is that more alternative
manage the funds and underwrite the Tim Wadsworth, in his 2014 study, Sex expressions of affection may help to sustain
associated administrative costs. Further and the Pursuit of Happiness: How Other wellbeing, thereby decreasing the tempta-
requirements can be introduced. For Peoples Sex Lives are Related to our Sense tion to stray (though, because men generally
example, applications could be limited to of Well-Being, repeats Updikes assertion report higher sexual desire, they may rely
collaborative research involving researchers that sex is like money. But, in Wadsworths more on sex as a way of experiencing affec-
from at least two countries or sub-regions. argument, what they have in common is that tion than the average woman does).
Preference could also be given to applica- they both derive value from comparison. It seems that psychology may rebut
tions with collaborators from countries with As Wadsworth points out, past research Updikes dictum that only too much sex is
weak national research systems. has shown that it is not absolute income enough. In fact, while regular sex is vital
These measures, together, will represent levels that determine happiness, but rather to promote intimacy and foster happiness
a serious shift in mindsets, which the income levels relative to those around you through shared affection, more is not always
commissioners argued is key to achiev- the colleagues, neighbours, former class- better. So sex may be like money, but only in
ing meaningful and sustainable change in mates, and others who form your reference that too little is bad.
health in sub-Saharan Africa. group. That is why a rising income does not
necessarily bring a corresponding increase Raj Persaud, the author of Simply Irresistible:
Alex Ezeh is Executive Director, African in happiness: it is crucial that the incomes of The Psychology of Seduction, is a consultant
Population and Health Research Center, Nelson ones reference group arent also rising. psychiatrist in Harley Street, London. Adrian
Sewankambo is Professor of Internal Medicine, Similarly, Wadsworths survey found Furnham is Professor of Psychology at University
Makerere University & Peter Piot is Director that respondents who believe that they have College London and the author, with Viren
and Handa Professor of Global Health, London more sex than their reference group are Swami, of The Psychology of Physical Attraction.
School of Hygiene & Tropical Medicine happier, while those who believe that their
cohorts are having more sex than them are Copyright: Project Syndicate, 2017.
Source: The Conversation less content. Wadsworth therefore concludes
Sept 22 - 28 , 2017 33
comment
By Enock Nyorekwa Twinoburyo
Bank of Ugandas task
Tackling high leverage in commercial banks
which poses pronounced risks in sector
R
ecently, Bank of Uganda (BoU) the total deposits. ment in government securities reaching
published the seventh issue of the The deposits imperatively offer Shs5.1 trillion in 2016 from Shs4.1 trillion
Annual Supervision Report cor- leverage for the banking sector as they in 2015 representing a 25.6% increase.
responding to the year ending account for 70% of the total assets (an This may be suggestive of the crowding
December 2016. BoU reiterates that the equivalent of 81% of the total liabilities). out of the private sector whose growth
banking industry remains sound, well capi- However, the deposits are mainly of in the last five years has been lower than
talised, liquid, and profitable. This indeed is short term nature implying arguably the historical average. Also total private
critical information for restoring confidence the banks do not offer long term lending. sector credit at Shs11.5 trillion represents
to the sector following the takeover of Crane The ratio of total deposits to loans 13% of GDP which is low compared to
Bank in October 2016 and the subsequent remains above 1, and grew to 1.4 largely Sub Saharan Africa average of over 20%
disposal of some of its assets and liabilities representing the sluggish growth (6.1%) and the East African Community average
to DFCU bank in January 2017. in credit in 2016. Loan approvals were of 25% - which illustrates low credit
In the same report, it is underscored at less than 60%, implying for every 10 penetration and that the private sector is
that the handling of Crane Bank by BoU loan applications only 6 were granted. not optimally leveraged yet the banks are
was without any contagion despite the While credit to personnel and house- seemingly so. This also corroborated by
regulatory weaknesses, fraud in the holds increased to Shs1.9 trillion (16% the cumulative number of financial cards
bank, and the associated misreporting of the total loan book), some banks are reaching 1.38 million in December 2016.
by then a domestic and systematically re-adjusting their portfolio either in safer Low credit penetration is attributed
important bank. assets, areas of comparative advantage inter alia to information asymmetry on
On profitability of the sector, the report (for example Housing Finance Bank the borrowers, small middle income
indicates a reduction in profits after tax exclusively for mortgages) and others class, and the slowing economic activity,
from Shs541 billion in 2015 to Shs302 bil- like Equity Bank have indicated they will employment and the reducing household
lion in 2016 the lowest in five years. stop personnel lending. Credit to real income in real terms. Household income
However, this is inconsistent with estate and trade sectors has remained data remains desperately needed and to
the published information by the 24 stagnant over the last couple of years. be frequently updated for proper and
commercial banks that reveals that the Banks instead increased their invest- effective economic planning. The last
net profits increased to Shs677 billion. household data available is from 2012/13
The difference (Shs375 billion) is argu- and yet the economy has since encoun-
ably attributed to Crane Bank losses tered numerous shocks and changes.
which accounted for nearly 50% of the In conclusion, with total shareholders
industry non-performing loans (NPLs) in
December 2016. Credit to real equity at Shs3.7 trillion (16% of the
total bank assets) implies that banks are
The asset deterioration depicted by the
rise in NPLs (10.5% of total loans) and
estate and highly leveraged by deposits. Despite
the high interest rate spread (difference
bad loans (Shs574 billion) in December
2016 imply that the sector risks remain
trade sectors between loan and deposit rates), banking
profitability remains unpropitious par-
pronounced. The stress tests reveal that
if each banks largest three borrowers
has remained ticularly for the bottom 15 banks (five
were loss making in 2016). The high
were to fully default, 13 banks would
become undercapitalised with the cumu-
stagnant over deposit share of bank assets reiterates
the need for heightened supervision to
lative shortfall of Shs512 billion. Together the last couple mitigate the recurrence of Crane Bank
with NPLs and bad loans, they com-
of years
and restore full confidence in the sector.
pare unfavourable to the commendable The alternative is client panic and bank
Deposit Protection Fund (DPF) of Shs405 runs and this could adversely strangle
billion end of December 2016. The DPF the economy.
capitalisation is through premiums paid
by the respective banks - of which 95% is Dr Enock Nyorekwa Twinoburyo is an
invested in government securities. Addi- Economist
tionally, DPF only accounts for 2.5% of
34 Sept 22 - 28 , 2017
ART | BOOKS | SOCIETY | TRAVEL | CULTURE
loud message
at above one million, it is high time that
they are involved in every aspects of life.
One approach to their inclusion is the arts
and culture one since these disciplines con-
tribute to the political-social and economic
T
By Dominic Muwanguzi depicts a contorted human figure battered opportunities for the sidelined to express
by disability. The artist appeared, like many themselves freely and opens up the door for
he view that disability is people, to subscribe to the narrative that dis- further creative prospects.
inability is nowhere more ability is a synonym for dependence. The exhibition was organised belatedly
entrenched than in the contem- A recent exhibition at Makerere Art Gal- as part of the International Awareness Week
porary arts. lery sought to debunk that. Staged under of the Deaf (IDAW) that took place from 21
Reference can be made to a the theme of Disability is not a synonym to 26 August. The exhibit was organised in
famous sculpture by the late for Dependence, it aggressively pushes for partnership with CEDAT, Margaret Trowell
Prof. Pilkington Ssengendo titled `Maskini inclusion of the PWDs in the contemporary School of Industrial and Fine Art, Uganda
(1962) that depicted a Person with Disabili- arts. On show were works done by this National Association of the Deaf (UNAD)
ties (PWD) and evoked debate on stereotyp- marginalised group with the aim of re- and SiSi Foundation.
ing them. The sculpture molded out of clay emphasizing their contribution to society.
Sept 22 - 28 , 2017 35
Profile
Eleanor Nansibo Nabwiso: Young
actress eyes global success
By Agnes E Nantaba production company. `Rain is
E
their first gig but she says more
leanor Nansibo are lined up.
Nabwiso is an actress Nansibo is the third of the
and producer known five children of the retired
for roles in `Watch Over politician, Rev. Dr. Kefa
Me (2013), `Rain (2016) and Sempangi who founded
`The Hostel (2011). `Rain, a the Presbyterian Church in
movie about keeping hope Uganda. Sempangi was also
alive against all odds, is her an instrumental figure in
first production under the the ministry to the street
Nabwiso brand. children in Uganda in
Her acting and film 1971 under the banner of
producing journey dates The Africa Foundation.
back to when as a young She went to Namagunga
teenager, she always dreamt Boarding Primary School,
of appearing on TV screens Seeta High School and Sikkim
as either a presenter or an Manipal University where she
actress. She got her first taste graduated with a degree in
of fame during her Senior science in IT.
Six vacation when she was Nansibo has her sight on
picked to present a weekend international success.
programme, K-Files on The industry can only be
WBS TV. She saw this as financially rewarding with
an opportunity to prove to quality work that not only
her mother, Jane Frances targets the local
Nakamya, who wanted her market but
to take a different career globally,
path, that acting or the media she says.
industry pays. He mother
mainly feared the late night
movements and sought a
banking job for her.
While hosting K-Files,
Nansibo continued to feature
in plays as one of the extra
characters in the Obsessions
music and drama group. On
one of those lucky days, Kwezi
Kaganda the director and
writer of the famous Hostel
miniseries under Fast Track
productions scouted her for
role of Hope.
While it takes years if not
decades for most Ugandan
actors and actresses to
command recognition in the
industry, Nansibos case was
different.
Nansibo describes herself
as boyish, outgoing and a
total contrast of the Hope she
played for three years. On set
she met and married Mathew
Nabwiso with whom they
opened Nabwiso Films, a
36 Sept 22 - 28 , 2017
Q&A
W
know about you? hundreds of others and still Some time back, I was for Ugandas filming industry.
hen I am angry balanced their roles as parents. very uncomfortable with the
I clean up a lot I look up to such people who birthmark on my left side of If you were to die and come
which helps me never give up in life. the face until I made myself to back as a person or a thing,
relieve off the believe that it is a beauty spot. what would it be?
stress. I also talk a lot and most What is your greatest I only wish to live the first
times, I am real; something extravagance? Which living person do you coming to my best.
that doesnt go well with some Travelling and partying; most despise?
people. I exhibit a boyish for me fun is everything and I I dont judge people because Where would you most like
character to the extent that would spend on it in anyway their lifestyles may not be of to live?
even when I am out there, I and at any time. their own making. I love Uganda but I wouldnt
am free of makeup and most mind leaving to a bigger
artificial stuff. What is the greatest thing you What is the quality you most country where I am widely
have ever done? like in a man? exposed.
What is your idea of perfect Starting a film productions God fearing; no matter the
happiness? company; for so long I had a religion because a God fearing What is your favorite
My happiness is my family small book where I noted ideas man will be barred from doing occupation?
and that is the peak of it all. and story lines but when I met certain evil things. Being I cant trade acting for
Even after a long day, as long my husband, we chose to settle respectful is also key for a good anything.
as my husband and children for where our interests fell and man.
are there to say all will be well, that is film. It was great taking What do you most value in
I am happy. that step even without being What is the quality you most your friends?
sure of the returns. like in a woman? True friendship that comes
What is your greatest fear? For a woman, it is more of with loyalty.
Being a risk taker, I am a What is your current state of respect and God fearing.
fearless person. mind? Who are your favorite writers?
I am happy Which words or phrases do Stephanie King and Sydney
What is the trait you most you most overuse? Poitier; they make reading
deplore in yourself? What do you consider the I like encouraging my friends appear as if the characters are
Sometimes I get boyish most overrated virtue? and children with the word within close proximity.
which irritates some Everyone has their own gogo.
people. rating but as Ugandans, we Who is your hero of fiction?
havent really got to the level of What or who is the greatest Taylor Perry; seeing him act
What is the trait you most customer satisfaction. We have love of your life? male and female roles in one
deplore in others? invested in so many areas but I love my parents, children movie. I also like Angelina
I cant stand liars or customer care is still a lacking and husband all in good Jolie and Halle Marie Berry for
bad communicators, area that we need to embrace measure so I dont have the grabbing the audience.
those who are not real and make better. greatest.
or the double- faced Who are your heroes in real
people. What does being powerful When and where were you life?
mean to you? happiest? My parents but my children
Which living person Power is measured at July 21, 2012 when I had are also my heroes because
do you most admire? someones milestone in life my traditional wedding was they change me to their
I dont look up and his or her ability to balance a glory in itself. It was crazy perspective and always look up
to other people but other roles alongside that happiness the day I had my to me.
myself because I landmark. Being powerful first child.
work to see the best therefore comes with the ability What is your greatest regret?
in myself. If I looked to strike a balance between the Which talent would you most No regrets.
up to somebody, different roles. like to have?
I may not know God has given me the talent How would you like to die?
their flaws and I On what occasion do you lie? of acting and if for anything, I dont have a plan for death .
fear that they may I am not good with lying I would just ask Him to make
disappoint me because I cant sustain it unless me the best . What is your motto?
along the way. its a tricky political situation Make your good better;
However, my that involves saving lives. What do you consider your never let it rest until your
parents, in both greatest achievement? better is best.
their different What do you most dislike With Nabwiso Films, we are
Sept 22 - 28 , 2017 37
Marriage proposal goes Grannies fix their
horribly wrong own road
Preparing to get down on one
knee can be an extremely nerve-
racking experience. Getting the
moment just right is important, but
the potential for slip-ups is huge,
which is what one poor guy found
out when he went to propose to the
woman of his dreams.
Seth Dixon had chosen a roman-
Crazy things people do for love tic location at Loose Park in Kansas
City, Mo., on top of a quiet wooden
A young man in the Sibe- mark her 29th birthday, while bridge. After pouring his heart out A group of Russian grand-
rian city of Biysk has made up a saxophonist below played in a romantic speech, he looked set mothers grew so tired of waiting
with his girlfriend in spectacu- her favourite song - the Aeros- for a beaming yes from his part- for the local authorities to fix
lar fashion by serenading her mith hit `Dream On. ner of four years, Ruth Marie Salas, their road that they hired the
from a van - suspending by a She told Russias Metro when the unthinkable happened. necessary equipment and did
crane outside her third-floor newspaper that Alexander Somehow the ring slipped from his the job themselves.
bedroom window. often surprises me with hands and by a cruel twist of fate After being told by officials
Neighbours on Leningrad- presents, but never before like slid right through a slit in the tim- that the pothole-covered road
skaya Street initially called this! She said they split up ber bridge and into the river below through the village of Svedniy
police to arrest the crane three weeks earlier after going and the entire unbelievable inci- Bugalish in the Urals was fine,
driver, but it soon dawned that steady for a year, and the dent was captured on camera and the group took up shovels and
this was a special occasion, as romantic gesture has persuad- witnessed by friends. wheelbarrows and seemingly
the van was decorated with ed her to make up with him. put the local authority to shame.
balloons. And when Yelena Not everyone is a romantic. The group - including a
Gorbunova opened her win- One social media cynic muses 90-year-old babushka - chipped
dow to see what was going on, just imagine - you reach her in 500 roubles (Approx.
she came face to face with her window in your van, and Shs36,000)each for a truckload of
ex-sweetheart Alexander bear- theres some other bloke star- gravel and set to work with the
ing flowers, gifts and a card to ing out at you in his pants. help of two men.
38 Sept 22 - 28 , 2017
This car runs on firewood
Drivers convert their cars to burning
wood instead of petrol or diesel
By Motoring Guru ing number of Ukrainian drivers turned to Depending on the quality of the wood used
I
wood to power their cars to save money and how dry it is, the car can reach speeds
t sounds spooky at first but a quick on fuel. The most covered movers of the of up to 60 miles per hour, which is pretty
Google search reveals dozens of photos wood-car trend were Eugene Chernigov and decent. Chernigov says that he can use plas-
of cars with wood-burning systems fitted Sergey Iagoon tic bottles as fuel, as well, but nothing com-
either inside vehicles or on the outside. 36-year-old Eugene Chernigov converted pares to dried mulberry.
People have apparently been creating wood- his old Opel into a wood-powered vehicle in Believe it or not, Chernigov says that his
powered cars for decades, and they were 2014. Rising gas prices made driving to work old Opel is now not only cheaper to drive,
actually quite popular during World War every day an expensive affair, so he decided but also more environment-friendly. Instead
I, but in modern times, people have mostly it was time for an alternative. of polluting fumes, the exhaust now expels
built them as experiments, to prove that it A teacher of physics and mathematics by only water vapour and carbon dioxide.
can be done. profession, Chernigov, learned about using Sergey Iagoon, from the Donbass region,
Ukranian media in 2015 extensively cov- wood as fuel from the internet and spent designed his first wood-burning car a few
ered stories of drivers converting their cars two months reading up on the topic and dig- years ago, and says that after his success
from running on petrol or diesel to wood. ging up literature on the subject dating back many others followed in his footsteps. He
Chernigov and Iagoon were covered by to 1939. He says building the alternative fuel first converted an old Lada and then moved
Ukrainian media, but its believed many system was a simple affair once he got a firm on to a Volga. Because he fitted the alter-
other drivers have turned to wood to save grip on the concept. native fuel system in the trunk of the car,
money. Chernigov told Segodnya News that He attached a wood-burning stove and a Iagoon says he never once had trouble with
he knows at least six other people who metal canister to the back of his car, the police.
made the switch. which connect to the engine of It is believed many other drivers have
This was the height of the the car. The gas emitted from turned to wood to save money. Chernigov
so-called `Donbas war which the wood combustion is told a newspaper that he knows at least six
pitted pro-Russian Ukra- stored into the metal can- other people who made the switch.
nian separatists against the ister, filtered, cooled and With the automobile industry slowly
Ukrainian government fed into the engine. His going electric, using wood as fuel hardly
in the regions of Donetsk car consumes around seems like the most practical solution. The
and Luhansk. The war 18kgsof firewood per technology isnt exactly new.
sparked an energy crisis 100 kilometers, which Remember, using unregistered energy
in Ukraine and the rising costs him only 50 U.S. units to power cars is against the law. Such
cost of gas send people to cents. By comparison, a technology has to be studied to ensure that
becoming interested in alter- liter of gas has an average it poses no danger either to the people in the
native forms of energy. A grow- cost of about 1.0 U.S. dollars. car or others.
Sept 22 - 28 , 2017 39
Global comment
By Selim Jahan
What counts in development
Why the Human Development Index metrics do
not tell the entire story of development
T
o most people, development such as dementia, which the World comparisons. The results for 2015 paint a
is best measured by the quantity Health Organisation now estimates affects much richer picture of educational perfor-
of change like gains in average 47.5 million people worldwide. mance across participating countries, while
income, life expectancy, or years While life expectancy can be calculated highlighting stark disparities. For example,
spent in school. The Human Development based on birth and death records, indices PISA found that socio-economically dis-
Index (HDI), a composite measure of na- that measure quality of life, like the WHOs advantaged students across OECD coun-
tional progress that my office at the United disability-adjusted life year estimates, tries are almost three times more likely
Nations Development Programme over- require considerable amounts of infor- than advantaged students not to attain the
sees, combines all three statistics to rank mation on a wide range of illnesses and baseline level of proficiency in science.
countries relative to one another. disabilities in every country. And, unfortu- Data on employment critical for policy-
What many do not realise, however, is nately, the difficulty of gathering such data makers, as they prepare for the future tell
that such metrics, while useful, do not tell means that many life-quality datasets are a similar story. The 2015 Human Develop-
the entire story of development. In fact, to incomplete or infrequently compiled. ment Report recognised that as the world
understand how developed a country is, Its a similarly mixed picture for educa- moves toward a knowledge economy, low-
we must also grasp how peoples lives are tion. The world is no doubt making prog- skill or marginal workers are at greater risk
affected by progress. And to understand ress in extending access to schools, with of losing their jobs, and opportunities for
that, we must consider the quality of the more children enrolled and attending than exploitation of informal or unpaid workers
change that is being reported. ever before. But how do we measure the increase.
When statisticians compare countries, gaps in educational quality? Some 250 mil- To put this in perspective, consider
they require commensurate data. To lion children worldwide do not learn basic employment projections for the European
compare school attendance, for example, skills, even though half of them have spent Union, which foresee the addition of 16
researchers would count the number of at least four years in school. It will come as million new jobs between 2010 and 2020.
registered students in each country, rela- no surprise that in most countries, schools But over the same period, the number of
tive to all school-age children (although in wealthier neighborhoods typically have jobs available for people with the least
even this can be a challenge in many devel- better facilities, more qualified teachers, formal education is anticipated to decline,
oping countries, where record keeping is and smaller class sizes. Addressing by around 12 million.
not always standardised). inequality requires measuring educational Not everything that can be counted
But to gauge the relative quality of a outcomes, rather than school enrollment counts. Not everything that counts
countrys education system, researchers rates. can be counted, the sociologist Wil-
would want to determine whether stu- The OECDs Program for International liam Bruce Cameron wrote in 1963. His
dents are actually learning. For those num- Student Assessment (PISA), which relies dictum remains true today, though when
bers, statisticians would need to test stu- on tests not directly linked to curricula, it comes to measuring human develop-
dents across a range of subjects, a project is one approach to making cross-country ment, I would suggest a slight revision:
that is far more ambitious than simply Not everything that is counted counts for
taking attendance. everything.
Statisticians have always recognised that Equitable human development requires
comparing quantities is far easier than that policymakers pay more attention
comparing quality. But, because existing The 2015 Human to the quality of outcomes, rather than
measures are all we have, the weaknesses
are often overlooked when ranking rela-
Development Report focusing primarily on quantitative
measures of change. Only when we
tive gains or making policies, even though recognised that as the know how people are being affected
progress according to a given indicator world moves toward a by development can we design policies
is not necessarily genuine. If the world is that bring about the most valuable
ever to reach parity in development, we knowledge economy, improvements in their lives. The intention
must change how we gauge and catalogue low-skill or marginal to live as long as possible isnt one of the
the quality of policy initiatives. minds best intentions, the author Deepak
Consider the statistics measured by the workers are at greater Chopra once observed, because quantity
HDI life expectancy, education, and per risk of losing their jobs, isnt the same as quality.
capita income. Life expectancy statistics
suggest that the world is getting healthier, and opportunities for
and data show that people are living exploitation of informal or Selim Jahan is Director of the Human
longer than ever before; since 1990, average Development Report Office and lead author of
life expectancy has increased by around six unpaid workers increase the Human Development Report.
years. But the increase in quality of life has
not been as dramatic. Those extra years are Copyright: Project Syndicate, 2017.
often accompanied by illness and disability
40 Sept 22 - 28 , 2017
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