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News analysis Health Business

Controversy erupts over Latest research on Umeme gets new Gov't tipped on how to
tragedy on Lake Victoria eradicating malaria connection targets stir industrial growth

Issue No. 549 Nov 30 - Dec 06 2018 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

Justine Bagyenda
Why former BoU supervision
director defied parliamentary probe

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Nov 30 - Dec 06 2018
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Issue No. 549 Nov 30 - Dec 06 2018

News analysis Business Health Arts Motoring

Cover story
Justine Bagyenda
Why former BoU supervision director defied parliamentary probe

4 The Week
30 Comments
Wandera sails through
Busia LCV race When leaders won’t leave:
For every leader, managing
your succession is a key
9 The Last Word
task and one that must not
Uganda’s performance paradox: be left until it is too late
How Museveni behaves like
his critics in undermining the
32 Health
credibility of his own government
Eradicating malaria: Scientist
develop vaccine technique that
14 Analysis could block mosquitoes from
transmitting disease
Tragedy on Lake Victoria: Marine safety
concerns raised again as over 30 die on
unsafe cruise boat
35 Arts & Culture
27 Business
Value of our old buildings:
Umeme’s new target: ERA wants Exhibit rediscovers
the power distributor to connect modernistic architecture in
more customers, cut losses five African cities

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

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

2 Nov 30 - Dec 06 2018


Offline

President Yower
Museveni and his
Somali counterpart,
President Mohamed
Abdullahi Mohamed on
Nov.24 after talks at
State House Entebbe.
They discussed “I would like to thank all of you who
areas of cooperation have reached out to me. By God’s
between the Somalia grace I am still alive, safe and getting
and Uganda particularly
in the areas of peace, medical attention but so traumatised.
security, defence, My deepest thoughts to our comrades
education, trade and who didn’t make it and condolences
investment.
to the bereaved families. What can I
say?”Iryn Namubiru after surviving the Lake
Victoria Boat tragedy
A boy plays on the
glass at Thailand’s
first skywalk. The
platform is 314
metres high, on
top of Bangkok’s
78-storey King
Power Mahanakhon
building.
“Some people think it is a miracle to
reach the mandatory age of 55 years
in order to access their savings, but
we have realised that only 2 per cent
of our clients die before that age.”
NSSF MD Richard Byarugaba

US President Donald
Trump and First
Lady Melania Trump
take part in the
annual tradition
of pardoning the
National Thanksgiving
Turkey. Following the
ceremony, pardoned
turkeys take up “I want to see someone arrested
residence at Gobbler’s for cutting a tree, all I see is people
Rest in the Virginia arresting those with bananas,
Polytechnic Institute yet our environment is being
degraded.”Speaker Rebecca Kadaga
calling KCCA to restore green belts

The only marine inspectors Boarding schools in Famers in Acholi who will
8 the Ministry of Works and
Transport has
70% Uganda operating
illegally
72000 get World Bank support
in an agricultural project

Nov 30 - Dec 06 2018 3


week

Correction
The Independent’s cover story, issue 53
(7th-13th September) contained incorrect
information regarding Ms. Rosa Whitaker,
CEO of The Whitaker Group and former
Assistant US Trade Representative for Africa.
The Independent reported that President
Yoweri Museveni received a list showing
that officials working on the process of
awarding a contract to construct the Stan-
dard Gauge Railway had received payment
from a Chinese contractor.
Rosa Whitaker has written to us noting
that contrary to our report, “she was not then
and at no time has received payment from
Wandera sails through Busia LCV race
CHEC”. Rosa also noted that she did not fall On Nov.26, the Electoral Commission him too.
out with President Museveni as reported in (EC) in Busia district declared Independent Both parties had filed petitions challeng-
our story. candidate Geoffrey Wandera newly elected ing each other’s nomination. Earlier in the
Specifically, she said that the claims that LC V of Busia district after he went through campaign there was some controversy over
she sought to “meet the President in Nairobi unopposed. This was after nomination for a rumor that the DP candidate Njoki had
on the sidelines of the Northern Corridor Democratic Party and National Resistance been appointed by the government for a
Integration Project meeting” and “was Movement Party candidates was cancelled. job at the Uganda Human Rights Commis-
unsuccessful” and subsequently in Kampala In two statements, EC chairperson Justice sion. His supporters said this was being
are false. Simon Byabakama said the nomination used as bait by the ruling party to keep
She told The Independent in a written of Paul Boniface Oguttu of the NRM had him out of the race. Calm only returned
message that she was not in Nairobi at that been cancelled on grounds that the names when he declared that he had rejected the
time neither was she afterwards in Kampala. in the nomination papers he presented government’s offer. “I thank the appointing
She noted that she and the President did not match the names on the requisite authority for considering me to serve on
Museveni have met several times to discuss academic documents accompanying his the UHRC but considering the time when I
infrastructure projects since and before the nomination papers. He also noted that DP received the appointment letter on Novem-
publication of the article. We regret any candidate Deogratius Hasubi Njoki was not ber 8, just a day after closure of nominations
inconvenience caused by our story. a registered voter under the national voters in Busia, I can’t make any change,” he told
register and thus overturned the returning his supporters.
Editor officer’s decision to have him nominated

Museveni receives special message from Burundi


President Museveni chats with spe- refuge elsewhere return.
cial envoys from Burundi led by For- This was shortly after Michel Kaf-
eign Affairs Minister Ezechiel Nibigira ando, the UN Secretary-General’s
(C) who delivered a special message Special Envoy for Burundi told the
from President Pierre Nkurunziza. Security council that the situation in
Though the contents of this special Burundi was calm but fragile and that
message were not revealed, the delega- after supporting a regionally-led inter-
tion came in shortly after Museveni Burundian Dialogue process for more
recommended that the conflict ravaged than three years, he felt it was time for
country needs a new constitution that partners to re-evaluate how best to help
can see the country return to stability the country out of its long-standing
and have their citizens that had sought political impasse.

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4 Nov 30 - Dec 06 2018


Week

Mengo agrees to pay Uganda ready to host chemical management academy, Bigirimana
couple Shs35million The Uganda Government trainings and first responders
for negligence has asked States Parties to the
Chemical Weapons Conven-
to toxic chemical emergencies
in the region.
Mengo hospital agreed on tion to consider establishing an Bigirimana said the pro-
Nov.23 to take Responsibility academy in Uganda to build gramme had continued to
and agreed to pay Shs35million local and regional capacity in infuse the necessary skills and
to a bereaved couple that lost handling chemical, biological, capacity building within the
their baby boy when an intern radiological and nuclear-related implementation of the Con-
doctor gave him an injection affairs. The appeal was con- vention.
that took his life. According to tained in a statement delivered “My delegation (therefore)
the consent judgment, the hos- on Nov.23 by Pius Bigirimana, requests for support from
pital agreed that they failed to Permanent Secretary, Ministry State Parties in order to realise
implement Uganda Medical and of Gender, Labour and Social the idea of the academy and
Dental Practitioners Guidelines Development at the ongoing centre of excellence being
to supervise medical interns in fourth special session of the established in Uganda.” Bigiri-
their Hospital as per the attached conference of states parties to mana said.
Consent Judgment we arrived at. review the operation of the Pius Bigirimana Uganda ratified the chemi-
The couple went to court in chemical weapons convention. cal weapons convention in
2015 and filed a case claiming The high level conference technologies. 2001, after which, the Gen-
violations including right to kicked off last week and runs Uganda has been hosting der Ministry was appointed
quality healthcare, health infor- until today – Nov.30, at The the regional operational train- National Authority for
mation and life after a student Hague, Netherlands. Bigiri- ings under the Convention, domestication of the conven-
nurse approached Nantubwe mana noted that the academy with the latest training having tion. Although Uganda does
Rita the mother of the baby with would be an elevation of the taken place from 24thOctober not possess, produce or have
a rather large injection with a Africa technical support – 1stNovember, 2018 in Jinja. stockpiles of chemical weap-
drug that she assumed was her programme through which A total of 36 participants ons, several of the chemicals
own only for it to be used on African countries, including from Burundi, Kenya, Tan- used in local industries are a
the baby. He later developed Uganda, are benefiting from the zania, Rwanda and Uganda great threat to the population
strange signs like body color exchange of knowledge, provi- were trained as a pool of and require skilled handling.
change and later died. sion of equipment and related experts to conduct downward

MPs talk tough as Bagyenda snubs COSASE hearing


Members of parliament sitting on Bagyenda who had appeared before This angered chairman of the
the parliamentary Committee on the committee a day before, Central committee and Bugweri county MP
Commissions, Statutory Authorities Bank staff informed the committee Abdu Katuntu who adjourned the
and State Enterprises (COSASE) on Nov.23 that she had written to the meetings and warned that if she
expressed displeasure when they were governor notifying him that she would doesn’t appear a warrant of arrest
informed the former executive director be away to attend some engagements would be issued against her.
in charge of supervision at Bank of which she had confirmed before Bagyenda was forced out of her
Uganda (BoU), Justine Bagyenda receipt of his letter Ref Gov.902 dated BOU position early this year but
had flown out of the country at a 19/11/2018 regarding Cosase meetings. has since been quoted by the media
time when she was needed to answer But, Governor Emmanuel Mutebile claiming that some businessmen are
questions relating to the closure and said he had only received her letter paying the press to malign her.
sale of seven commercial banks. early that day.

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Nov 30 - Dec 06 2018 5


Week

Parliament rejects zoning as sugar bill is passed Tycoon Shumuk fraud


Parliament has passed the Sugar Bill that file goes missing
seeks to regulate the industry. In the new
piece of law passed on Nov. 23, the MPs Kampala tycoon Shukla Babub-
rejected a government proposal to provide hai Mukesh was last week charged
operating zones for mills which they had put with fraud and now his file has
at a distance of 25kms apart. gone missing from police, reports
Instead of zones proposed by government, say. Mukesh commonly known
the Committee on Trade that considered the as Shumuk is the boss behind
Bill, proposed to have a nucleus operating Shumuk Aluminium Industries
area of 2,000 hectares. The Chairperson of the and was facing 13 counts ranging
Committee, Robert Ssebunya, conversely not- from forgery, uttering false docu-
ed that the committee proposed an amend- ments and conspiracy to commit
ment that a sugar mill or plant has a nucleus Koboko’s district’s Margaret Baba Diri said a felony. Makindye Magistrates
estate instead of a zone of 2,000 hectares from it’s unrealistic to leave government to dictate Court was forced to adjourn after
a 25km radius. the size of the area where a mill will be estab- the prosecutor admitted there was
“This will be able to address the issue of lished because 2,000 hectares is too much and no police file. Prosecution alleged
scarcity of sugarcane, create order and will gives the miller a big expanse to have control that on April 17, 2015 in Kampala
help mills to operate optimally and break over,” she said. District, Shumuk forged a letter
even,” he said. Among other things that the MPs voted on for official hand over of Hotel
However, MPs noted that the nucleus is doubling the number of out growers on the Diplomate in Muyenga, a Kampa-
would raise a number of issues concerning Uganda Sugar Board from two to four consid- la suburb. The hotel belongs to the
the availability of land. ering that they are the majority. Katatumba family although Shu-
“You cannot easily get 2,000 hectares today; The bill seeks to provide for the develop- muk and the late Bonney Kata-
secondly you will be creating a monopoly in ment, regulation and promotion of the sugar tumba were engaged in a long
that area because this restricts out-growers industry to ensure that there is a sustainable, running feud over the ownership
to selling sugarcane to only that mill,” said diversified, harmonized, modern and com- of the hotel.
Iganga legislator Brenda Asinde whereas petitive sugar sector.

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6 Nov 30 - Dec 06 2018


Humour Did you know?

The difference between


green and black tea
Both green and black tea come
from the leaves of the Camellia
Federation of Uganda Football Association (FUFA ) has expressed frustration at
failure to meet the Minister of Education and Sports and First Lady Janet Museveni. sinensis tea bush. Whether
these tea leaves end up green or
black depends on how they are
processed or in other words how
they are ‘finished’ after being
picked.
Green tea is made from tea
leaves that are simply steamed
and dried soon after harvest.
Black tea is dried and crushed
which allows the action of
enzymes (which occur naturally
in the tea leaves) to convert some
of the simple catechins of green
tea to more complex forms known
as theaflavins and thearubigens.
These compounds are responsible
for the distinctive flavour and
darker colour of black tea.
They are also the well-known
‘antioxidants’ in tea responsible
Tribute to the Lake Victoria tragedy victims that passed in for much of its benefits.
a divesting boat accident that took place on Nov 24. Many people drink green tea in
the belief it is caffeine free
Because it looks and tastes
more like a light herbal
tisane such as peppermint or
chamomile, many people wrongly
believe green tea to be caffeine-
free. It’s not. Because it’s derived
from the SAME plant as black tea,
green tea contains similar levels
of caffeine (range 10 to 50 mg
caffeine per cup).
So green tea is not the thing
to drink before bed if caffeine
disturbs your sleep. However,
on a positive note, the caffeine
content of all teas is only around
one-third to one-half of that
found in coffee so you don’t get
such a ‘jolt’ of adrenalin when
The Attorney General Mwesigwa Rukutana took to social you drink it.
media to defend the picture of him holding an AK-47.

Nov 30 - Dec 06 2018 7


An employee selects a book from the shelves of the Royal Portuguese Cabinet of Reading in Rio de Janeiro, Brazil. Founded in 1837
by a group of Portuguese immigrants, the library has been open to the public since 1900 and houses many rare and valuable books.
The Last Word Opinion

Uganda’s performance paradox


By Andrew M. Mwenda
How Museveni behaves like his critics in
undermining the credibility of his own government

T
here is a suffocating sense among government. Yet drumming this story from It is not the job of Museveni’s critics to
a large cross-section of educated hilltop to hilltop across Uganda is important polish the image of his government but his.
urban Ugandans that our country is for building our national pride, uniting our But he does the opposite. Take the recent
falling apart. In my frustrated mo- people and improving our mood. Ironically cabinet decision to merge some public
ments, I too feel the same way. The growing many Ugandans would prefer Makerere entities or disband others “to save money”
potholes and traffic congestion in Kampala, to be ranked the worst university in Africa as an example. Government resolved to
the impunity of boda boda riders, and if only to get an opportunity to denounce abolish the Uganda Wildlife Authority
the general lack of a vision around which President Yoweri Museveni for the corrup- (UWA) and take it back to its parent min-
people can be mobilised ensure a grim na- tion and incompetence of his government. istry as a department. Yet government
tional mood. One, therefore, understands Indeed, had it be so badly ranked, the noise stopped funding it many years ago. Today
why some Ugandan elites rally behind on social media would have been as deaf- UWA collects more money than it can
demagogues that denounce the status quo ening as the silence on these good results. spend. This financial year, its projected
and call for radical change. Yet celebrating our accomplishments does revenue is Shs100 billion against a budget of
Yet, this general sense of crisis is mostly us much better than grumbling over our Shs70 billion.
based on emotional conviction and not on failures. Our government also resolved to abolish
evidence. On most of the critical state func- Makerere is not alone. Uganda’s water the National Registration Bureau and
tions, evidence contradicts these popular and energy utilities rank best in Africa. The take it back to the Ministry of Trade as a
feelings. Take the example of Makerere National Water and Sewerage Corpora- department. Since it was created in 2011,
University Kampala; an institution I often tion (NWSC), a government run utility, this bureau has reduced the time it takes
criticise, calling it a casino. It is characterised has been voted best water utility in Africa to register a business from two months to
by incessant strikes – one month it is by consecutively for the last four years. In a less than an hour and increased revenue
academic staff over wages, the next by non- country where service delivery is consid- from business registration from Shs3 billion
academic staff, and the third by students ered Museveni’s signature failure, this is a to Shs50 billion. Given that it budgeted to
over fees or food. The halls of residence are paradox of the first rank. It is not. In 2016, spend Shs25 billion this financial year, it has
rotten and lecture rooms dirty. the World Bank produced a report showing huge surpluses that can fund the national
Makerere has many students that are that only two countries in Africa are able to budget. Yet the Museveni administration
intellectually curious and question conven- pay for the operational and capital expen- intends to deliberately abolish its own sig-
tional wisdom i.e. have the foundation for diture on electricity in Africa – Uganda and nature achievement.
learning. Yet most of the students from that Seychelles. In fact, most of the institutions cabinet
university that I interact with, especially According to this World Bank report, decided to abolish or merge are equally
on social media, depress me by their utter power utilities in Africa are all malfunc- some of the most successful; such as the
intellectual ineptness, close-mindedness tioning and depend on government sub- Uganda National Roads Authority, the
and propensity for mistaking political slo- sidies to survive. In Uganda, Umeme has Insurance Regulatory Authority (which is
ganeering for intellectual analysis. These created business efficiencies that have made self financing), etc. Why? The committee
are the young Ugandans who gave up on investment in our energy sector attractive. that made these recommendations was
thinking long ago – or perhaps they grew Ironically, Museveni often joins his critics to composed of the Ministry of Public Service;
up in homes or studied in schools where call for Umeme to be kicked out of Uganda. the most incompetent ministry in Uganda.
they were never challenged to think outside Contrary to popular belief, Museveni So government asked a blind man to search
the box. invests little or nothing in trying to improve for a pin.
It was with this later frustration, therefore, the image of his beleaguered government. But why recommend the abolition of the
that a young friend and first year student Instead, with his reckless statements, he most successful government entities? Here
of law, Joel Mukisa, gave me an inaugural often personally contributes to damaging vested interests that lost access to public
lecture by Prof. Sylvia Tamale on Nudity, its image. resources through the creation of these
Protest and the Law in Uganda. And boy, The National Social Security Fund (NSSF), independently run government entities
it was one of the most intellectually stimu- run by the government of Uganda, is East united with political sloganeering to create
lating pieces of writing I have read. Tamale Africa’s largest and most liquid provident a toxic mixture of bad policy and corrupt
reminds me that Makerere has some of the fund. Last year it paid interest of 15% to its politics. The most successful public entities
best brains in the world. Indeed, The Times subscribers, favourably competing with are equally the ones with the most money.
of London does an annual “Literary Supple- private firms in giving a good return on Some people in and around government
ment” where it ranks the world’s universi- people’s savings. The Uganda Cranes has want their fingers on this money; the better
ties. It ranks Makerere fourth best university twice in a row qualified for the Africa Cup to take them back to parent ministries
in Africa. Outside of South Africa, no other of Nations. Critics rave and fume against where it can easily be stolen because of the
country on our vast continent has a univer- our health system but the taste of the pud- confusion there. Sad!
sity better than Makerere. ding is in the eating. Life expectancy in
But no one sings this sweet music to our Uganda is consistently rising. Indeed, today amwenda@independent.co.ug
national ears – not Makerere or our inept Mulago is doing heart and brain surgery.

Nov 30 - Dec 06 2018 9


cover story

Justine Bagyenda
Why former BoU supervision
director defied parliamentary probe
By Haggai Matsiko
A sitting of the Parliamentary Committee on Commissions, Statutory Authorities and
State Enterprises (COSASE) which is probing Bank of Uganda’s dissolution of seven
commercial over 23 years turned dramatic on Nov.20 when central bank officials
contradicted each other and traded accusations.
They were eventually kicked out of the hearing amidst allegations that they were
deliberately withholding vital information on the movement of assets, including cash, of
some of the sold banks.

10 Nov 30 - Dec 06 2018


T
cover story
he former Director for Supervi- “It is true that the governor may not have draft. You handed over special audit final
sion at BoU, Justine Bagyenda received the reports because Ssekabira does report…
had specifically been sum- not report to the governor,” Ssekabira said. Now, we are talking about two files
moned to shed light on some He said he was appointed as an agent because what Mrs. Bagyenda is talking
missing files said to contain of the liquidator and was reporting to about, could only be related to those two
critical information. somebody far below the governor. “Those files. That is the sale of movable assets
This was after a ploy by BoU officials to reports exist,” Ssekabira said. and transaction audit interim progressive
hide under shifts in banking regulations Katuntu: “You said there were no reports. report.”
to claim they were not required to keep an Now you are saying there are reports, It is at this point that Katuntu directed
inventory of assets and liabilities of closed which is a contradiction. That is why mem- that Bagyenda and the BoU team provide
banks. bers are wondering what you are talking all the other documents at the next sitting.
The seven banks whose closure by BoU about. We want to know the asset move- At the said sitting Bagyenda was no show.
is under scrutiny include; Teffe, Greenland ment schedule from Shs117 billion to Shs19 The committee only learnt through a letter
Bank; formerly owned by the late Sulaiman billion. Do we have documentation to show that she had travelled outside Uganda.
Kigundu, National Bank of Commerce movement of these assets?” Infuriated by this, Katuntu adjourned the
(NBC), formerly owned by tycoon Amos At that point Mutebile also jumped in. meeting with Bagyenda and warned that
Nzeyi and former Prime Minister, Amama “Mr Ssekabira said he had no reports to me if she failed to appear, a warrant of arrest
Mbabazi, among others, International Bank, because he was too far from me,” the Gov- would be issued against her.
formerly owned by the Thomas Katto fam- ernor wondered, “He did not say which Interest in Bagyenda appears to be high
ily, Cooperative Bank, Global Trust Bank, person that was. Who is this person whom because on Feb.10, she was captured on
and Crane Bank which was owned by Sud- he is not naming?” BoU CCTV cameras while appearing to
hir Ruparelia. “It was Mr Apollo Obbo, Ms Margaret carry out of the bank various documents in
Initially, Benedict Ssekabira, the Direc- Matovu and Ms Justine Bagyenda,” Ssek- green polythene bags.
tor Financial Markets Development at BoU abira responded. The documents were many and too
insisted there are no reports. He explained heavy for her to carry alone. She had her
that ICB was closed in September 1998 and
that KPMG, who was appointed as a liqui-
dator agent by BoU, submitted a report only
once throughout that time. That final report
is dated September 30, 2001.
Similarly, he added, under Co-operative
Bank, KPMG also reported only once in
August 2001 and that was their exit report.
In Greenland Bank, Ssekabira explained,
Delloite Touché were engaged from day
one.
“The issues in Greenland were heavier
and more challenging. As for the terms of
their engagement, they were required to Louis Kasekende Tumubweine Twinemanzi Benedict Ssekabira
issue frequent reports. That is why you see
frequent reports from the Central Bank,”
Ssekabira told the committee, “In KPMG Enter Bagyenda driver and bodyguard help her carry some
where frequent reporting was not required, of them. This was days after her former
they sat in there and only did reports when That is when the committee decided to boss Emmanuel Tumusiime Mutebile had
it was required. These are the differences summon Bagyenda to appear at the next relieved her of her duties in a major reshuf-
that existed.” sitting. When Bagyenda appeared, she fle on Feb.08 in which he moved around
Following the takeover by BoU, which appeared to have well-scripted answers about 50 high level staff of the central bank.
happened in 2001, BoU did not want to to questions on the missing reports. She The Independent understands that at the
report to itself because at that time, BoU was repeatedly insisted she is no longer an time, a decision was made at BoU to have
in charge of the liquidation and being in employee of BoU and, having handed over her house searched.
charge, it would not issue a report to itself.” to her successor all the required reports as Even a search warrant had been issued, a
He said that what BoU did was appoint part of her handover report, she was no source knowledgeable about the issue told
auditors in 2002 to audit the situations in longer answerable for them. The Independent on conditions of anonym-
2002 and that indeed there is a statement of But her successor, Twinemanzi ity because of the sensitivity of the matter.
affairs for each bank that was submitted to Tumubweine, told the committee that However, this information leaked before the
this Committee. Bagyenda never handed over the said docu- search was conducted and Bagyenda trav-
At this point, Katuntu pressed Ssekabira. ments. elled outside Uganda for four days.
“Which department was handling this Then Bagyenda insisted: “When you go When the security personnel at BoU later
particular exercise,” Katuntu asked. through each closed bank, all the informa- asked Bagyenda to explain the situation, she
Ssekabira responded that it was the Bank tion is there. Every file. When you look at said that over the years, she had kept some
supervision department. that, I said in that handover report, I sent in of her personal documents and that these
“Which organ of the bank was it report- your office, there’s file A, Greenland bank, are the ones she was taking home.
ing to?” Katuntu fired again. UCL please take time to read them, it’s in Bagyenda’s departure from the bank was
When Ssekabira said it reports to the my handover report.” not smooth. When Mutebile reshuffle staff
Governor, Katuntu asked him where the However, Katuntu read out what Bagy- on Feb.08 and left her without an office,
reports they had submitted to the governor enda handed over: “You handed over protested.
saying they were doing this and this was Greenland bank legal audit report. You She told the Governor that she could not
the status, were. handed over handover assignment final be fired because she was permanent and

Nov 30 - Dec 06 2018 11


cover story

Benedict Ssekabira hands a document to COSASE's Anita Among as other officials look on .

pensionable and her rights needed to be The Independent, “now the AG is asking GTB, NBC and CBL; lack of documents on
respected. for documents and they are no where to be sale of assets for Greenland Bank, ICB and
“Process your handover,” Mutebile seen.” Cooperative Bank; poor sale of assets; and
insisted, “you are due to retire.” Muwanga requested BoU to furnish them poor recovery of non-performing loans.
So Bagyenda did not leave the bank and with documents. On Teefe, BoU did not avail the AG with
stayed until months later when she hit “I shall be pleased to discuss the matters the inventory report, loan schedules, cus-
retirement age and left. mentioned in this report with you at Audit tomer deposit shedules and statements of
These incidents happened between mid- House on 4th April 2018,” Muwanga wrote, affairs.
February and Mid-March but have become “Meanwhile, I await your responses which “Due to this limitation, I could not assess
the centre of debate because at the time, the should reach this office by 30th March the status of the assets and liabilities of Teefe
auditor general’s office was carrying out the 2018.” Trust bank from closure to-date,” Muwan-
investigation on the seven closed banks. But months later, when the final audit ga’s report observes.
Most importantly, COSASE, which report came out, it became clear that the Katuntu wrote to Governor Mutebile
directed the AG to carry out this audit, has auditor general had not received the infor- demanding the said documents. BoU
started its probe and is grappling with the mation they needed. responded that Teefe Trust bank was closed
issue of missing documents on the process- in February 1993 under the provisions of the
es surrounding the closure of the banks. Probe needs experts Banking Act of 1969, which did not contain
Indeed, when on March.23, AG John Indeed, as the COSASE investigation substantive provisions on reports that the
Muwanga wrote to Governor Emmanuel rages, the question of missing documents liquidator was required to compile.
Tumusiime Mutebile raising concerns that has taken centre stage and Bagyenda finds In a follow up meeting on Nov.12, the
among others, he had not been furnished herself on the spot over the same issue. legislators again demanded for the docu-
with certain critical documents; Bagyenda’s So far the committee has explored only a ments. In this meeting legislators directed
moving documents out of the bank came tiny fraction of the issues raised in the AG’s Twinemanzi Tumubweine, the current
up. report. Some of these issues include; miss- executive director supervision to pass on
“A senior official was seen carrying loads ing records on the closure of Teefe Bank; the question to Ssekabira, who was a staff at
of documents out of the bank,” a source told missing records on the transfer of assets on BoU when Teefe was closed.

12 Nov 30 - Dec 06 2018


cover story
the AG could not verify the movement of
assets,” Katuntu said,“Why are there no
“Why are there reports during the time you are managing
the process of liquidation of assets?”
no reports That is when the Bagyenda affair flared.
At the investigation rages, it is becoming
during the clear that at a very twist and turn in the
process of closure of banks, BoU officials
time you are either lack critical documents to explain
their decisions (and therefore, did not do
managing the their job as per the law) or are withhold-
ing these documents, which according to
process of critics, raises a question: what could be the
motive?
liquidation of Amidst all this, questions remain as to
whether COSASE has the capacity to navi-
assets? Katuntu gate these waters and fully interrogate the
complex issues surrounding the closure of
asked banks.
Some critics feel that while COSASE
could deal with administrative issues, to
get to them bottom of the crisis around
closures and come up with a strong
report, government needed to get experts
from international institutions, which are
mature like the Bank of England to investi-
gate the central bank.
In the past, government has engaged
an international institution to identify
The committee wanted to know how the experts that could study the central bank’s
assets reduced. Governor Mutebile first capital inadequacies. This study took place
said BoU does not have the reports. between 2010 and 2012.
In more specific terms, the current What is clear, though, is that COSASE
executive director Banking Supervision, has further opened up the central bank for
Tumubweine Twinemanzi, told the com- public scrutiny and broadened the debate
mittee that starting 2002, when BoU was beyond the squabbles within its leadership
the liquidator, there were no reports detail- ranks.
ing the movement of assets for the three For instance, before the investigation
closed banks. started, some had concluded that reports
But The Independent has been told that about the crisis at the central bank were
when the central bank closes a bank, it is merely the handiwork of detractors look-
Initially, Ssekabira said that the invento- required to prepare several reports. One ing to discredit senior officials at the bank.
ry report was provided as a summary but of these reports is called the statement But since officials started appearing
later conceded that BoU never prepared an of affairs. It provides an overview of the before the committee and contradicting
inventory list before closing Teefe. bank’s assets and liabilities. each, it is increasingly becoming clear that
Deputy Governor Louis Kasekende, at For instance, while the statement of several officials at the bank have a few
that point told COSASE that when Teefe affairs of June 30,2016 indicated that all the questions to answer.
was closed, there was no legal requirement physical loans and customer assets had The main question now is whether
to maintain an inventory list. been sold, it later emerged that the liqui- Katuntu’s team can ask these questions,
But it emerged that even the Financial dator did not sell all the assets previously press the officials for answers and once
Institutions Statute of 1993 under which owned by one of the banks—Co-operative they find them culpable of any wrong
Teefe was closed required the central bank, Bank. doing, push for action against culpable
among others, to as soon as possible after These titles remain in the custody of the officials.
taking possession of a financial institution, Central Bank. Officials explained that the Even here, many remain pessimistic
make an inventory of the assets of that three title deeds for Co-operative Bank mainly because many investigations by
financial institution. were not sold because of ownership dis- committees of parliament including those
Pushed to a corner, BoU provided more putes over them. of COSASE under Katuntu, have tended to
information regarding the Teefe closure. BoU officials noted that in their view be ritualistic and not translated in any con-
Away from Teefe, the committee the information they had provided the AG crete actions against any officials.
embarked on another aspect—the lack of was adequate to explain the movement of Despite this, many will be looking at
reports on the transfer of assets for Green- assets. how the outcomes of the probe will affect
land Bank, Cooperative, and ICB Bank. However, Katuntu insisted that while Mutebile, his deputy Kasekende, and the
The three banks had assets worth during the period when others performed central bank’s board, who are responsible
Shs117.7 billion at closure. However, as the role of liquidation, there were regular for carrying out the oversight role on the
at June 30, 2016, the asset position had reports which showed clear movement of operations of the central bank and under
reduced to Shs19.7 billion. Because the AG assets, when BoU directly took over, those whose watch all this transpired.
was not availed with reports on how this reports are not there.
happened, he noted that he could not verify. “Now that those reports are not there,

Nov 30 - Dec 06 2018 13


news analysis

Tragedy on Lake Victoria


Marine safety concerns raised again
as over 30 die on unsafe cruise boat
By Ian Katusiime and Flavia Nassaka government has responded to the tragedy was sinking.

O
with speculation, finger pointing, and wild Some people agreed to be rescued on
n the evening of Nov. 24, news promises of reforms. the small fishing boat. But, the survivor
filtered through about a boat It is now claimed that the boat was in said, many were already intoxicated by the
that had sunk on Lake Victoria. poor mechanical condition and had been time the boat started filling with water, and
Nothing unusual, it appeared, dry-docked for maintenance and that the many calls for safety went unheeded.
since tiny rickety fishing vessels sink often organisers of the cruise defied a marine As the boat started rolling from side
on Ugandan lakes. But then a figure of police order not to take to water on a to side, and gushes of water made their
over 120 people on board started being suicidal late evening cruise. way onto the boat deck, panic ensued.
mentioned. Soon it was mentioned that None of this could be verified by press Pandemonium increased when a speaker
this was in fact a cruise boat, ferrying time. What is clear is that this was not blaring music fell into the water, followed
revelers from one beach on the edges of an impromptu decision as the revelers by the generator, automatically killing the
Kampala City to another in neighbouring included close-knit groups of Kampala boat engine. All on board knew danger
Kyaggwe County in Mukono district. city elite and appeared preplanned. Social was imminent. The unnamed survivor
The boat sail normally takes 20 minutes. media messages announcing it circulated says he told his friend “We are going to
Sometimes, however, boat cruises stop in well before the ill-fated evening. die.”
the middle of the lake for revelers to have The boat with fishermen left with about
more fun time. But this one did not make Survivors’ tales 15 people and minutes later disaster struck.
it. According to survivors, trouble started She says by the time they docked, they
By press time, two days later on Nov.26, when the boat which had been sailing for received news that the original boat had
up to 30 people; 15 male and 15 female, some time, appeared to be hit by a strong sunk.
had been confirmed dead and the search wave. When the boat capsized, it was survival
for more bodies was ongoing. It was all According to one survivor’s tale, for the fittest. Some good and strong
guess work as no passenger manifest was someone shouted “Balance the boat, swimmers dived for a nearby beach that is
made. It was also unclear if the boat, which balance the boat” over the public address said to be about 100 metres from the scene
keeled over the side before sinking, had system. It appeared that balancing the of the accident. Most survivors say there
trapped any passengers under it. That boat was complicated as people in the were a few people with life jackets. But
would take time to unravel because there partying frenzy crowded to one side of the some of them drowned when desperate
appeared no plans to right or float the boat. drowning passengers clung onto them.
vessel. A fishing boat had detected danger and Some of the ordeal was captured in
Instead of facts and information, the its occupants shouted that the cruise boat recordings. One can hear desperate cries

14 Nov 30 - Dec 06 2018


news analysis

as other smaller boats rushed in to rescue rigorous safety protocol that cruisers started a process to present a bill in
people. One of them, with most of a group should go through. He says it matters parliament to regulate all transport
of about 20 people who had crammed into how passengers are notified in case of an operations on Uganda’s water bodies. The
it, sank. emergency and this also needs some form plan was to merge all the laws governing
of training or expertise. water transport – the Inland Water
Safety measures For any vessel to be allowed on the lake, Transport (Control) Act revised edition
John Opiro, the Managing Director, he says, it should be of known capacity 1964 and The Vessel (Registration) Act 1904
Kalangala Infrastructure Services (KIS) and with life jackets that fit that capacity and the Ferries Act into one law.
Limited which is one of the bigger marine and an additional 20% for reserve. The law would put into consideration
operators, says these deaths could have Inspection of vessels according to all the issues in that industry since the old
been avoided if only the marine regulators international guidelines should be done ones are considered obsolete, something
were skilled. He says such a boat under every year and if maintenance works are that continues to compromise maritime
proper circumstances should not have done before a year elapses, there should be safety. But since then, nothing much has
been allowed on the lake. re-inspection. happened even after a consultant was
“You can’t use a fishing boat for a cruise. He says ensuring that the boat has hired to study the old laws and advise
It’s not the kind where such happens. A marine insurance is also key since this accordingly.
fishing boat has different stability on the cannot be issued unless the Ministry Opiro says Lake Victoria is the only
water because of the kind of load it carries. has granted the boat a certificate of sea water body in Uganda on which transport
People spreading makes such a boat worthiness. operations are regulated by the Lake
unstable”, he adds, “these deaths could Mark Sali, the communications manager Victoria Transport Act, a relatively new
have been easily avoided”. of Uganda National Roads Authority law.
Opiro says most of the staff at the (UNRA) which operates all government He adds that this law was enacted
Ministry of Works do not have the ferries told The Independent that they at the regional level in 2009 by the East
capability to identify whether a boat has are insured and have sea worthiness African Community partner states. This
a mechanical problem or not because certificates. “Our challenges come on law, in addition to regulating passenger
they are not trained to do so. “There’s no market days but our ferries have life and cargo safety, also looks into issues of
training school for marines in the country,” jackets, life rafts, and life rings,” he said. the competence of the crew and licensing
he tells The Independent. Opiro adds that because of low capacity of vessels. “But even if it is there on paper,
World over he says cruise liners earn by the regulators since marines are just a theirs is no enforcement,” he says.
big because boat cruises are one of the best small department, some vessels delay to Hours after the boat sank, images on
tourist activities where people camp on get permits even when they conform to all social media of the Ugandans on the
boats for months having fun and clearly standards. boat cruise making merry were being
this boat was not fit for that purpose. He cites an example of MV Pearl and juxtaposed with pictures of some of their
The ideal thing that should have been MV Ssesse ferries, under KIS, which have lifeless bodies ashore after they were
done in such a situation where the boat over seven months failed to get a permit retrieved by first responders.
was in poor condition is issuing reserve even when they meet all the requirements. A statement from the Office of the
boats to follow the main one to cater to any “These regulators are killing the marine Prime Minister on Nov. 25 said marine
likely emergency. sector. They seem to be focusing their units of the Uganda People’s Defence
Apart from over loading, the other energy in wrong places. Let them improve Forces (UPDF) and Uganda Police had
consideration is how equipped the boat is their positions. People should meet basic rescued 26 people.
for extreme weather. standards”.
Opiro stresses there should be a The Ministry of Works had in 2014

Nov 30 - Dec 06 2018 15


interview

An AIDS cure
Global Researcher speaks out on why
he cannot predict when it will come
American immunologist and Director at the National Institute of Allergy and Infectious Diseases at the
National Institutes of Health in the U.S., Dr. Anthony Fauci was a young doctor when he saw his first HIV/
AIDS case. This was in 1981, and they were treating a strange illness that had no name. The now 78 year
old and colleagues moved to treating opportunistic infections until 1987 when he took part in the study that
gave the world the first HIV drug. He recently spoke to The Independent’s Flavia Nassaka on the sidelines
of the Global Biomedical Research for HIV Prevention conference in Madrid, Spain.

You have headed the National Institute


of Allergy and Infectious Diseases at the
National Institutes of Health (NIAID) that
oversees research into infectious diseases
globally since 1984. This means you have
been involved in the AIDS journey since

I
its infancy. How has it been like?
first learnt about HIV in June 1981
when a weekly report came in at the
office showing five gay men from Los
Angeles had reported to the clinic with
strange symptoms of severe pneumonia.
These symptoms were not new. We were
already seeing them in cancer patients that
had suppressed immune systems. But, the
numbers kept increasing. When another
report came out a month later, they were
26 and all gay men but this time from
New York and San Francisco too. We were
scared; we wondered what this strange
illness was. We realised we needed to act
and very fast because our patients would
die only in a matter of weeks. That marked
the beginning of my close relationship with
HIV/AIDS.
We stormed the laboratories in panic
with very little knowledge and after about
five years of trial and era, Zidovudine
or AZT, the first antiretroviral drug was
approved for treatment of HIV in 1987.
Patients first used it as a single drug but
with more research, drug combinations
were also proven to work and approved.
That is how we moved into rolling out
antiretroviral drugs to different parts of
the world. By 1996, even developing
countries like Uganda could now
access treatment either in clinical
trials or those who could afford
to buy their doses. That
closed the dark age
of HIV, people
started

16 Nov 30 - Dec 06 2018


interview
opening up, and there was scientific It’s a scientific problem. Vaccines for
evidence of what really causes infection HIV are one of the most difficult scientific
and how to avoid it. We started telling We started challenges that we have because of the
people that everything is under control
and here we are now speaking about looking for following reasons. When you look at all
the other vaccines that we have developed
innovations such as Dapivirine rings,
Carbotegravir injections and we are telling
a vaccine in for hepatitis, polio, small pox or measles,
what happens is that you use the natural
people that you can have a HIV positive 1987 all of infection as a proof of concept. So we
partner but you will remain negative.
which failed. know that whether you get infected with
polio; that even though there is degree of
With so much research into prevention
and the new devices that have been
It’s impossible morbidity and mortality, at the end of the
day most of the people recover and they
proved to be effective, what’s challenging to make a have an immune response that contains

prediction
policy makers in Uganda now is dividing the virus. With HIV unfortunately, that’s
up the little resources to ensure both not the case. The body doesn’t make an
treatment and prevention are catered for.
What choice would you recommend that
because it’s adequate protective response against
natural infection. So it’s difficult to get a
they make? a scientific vaccine that can do what natural infection

unknown
They should try to strike a delicate can’t. But, what we are trying to do right
balance because you to can’t choose to do now with a vaccine is trying to get parts
one and ignore the other. There is PEPFAR of the HIV virus in a form that the body
and the Global Fund providing some of recognises it and makes a response better
these interventions but countries should initial focus was to provide treatments to than the response that it would make
make more investment in treating and high prevalence countries. against natural infection. We say that we
preventing infection in their own countries. have to do better than natural infection
They can’t pick one against the other but One of the newest additions to the because this is very unique from the
have to do more of both. treatment plan in Uganda is a new viruses that we have been dealing with.
combination drug – TLD that was
You are one of the global researchers launched in September but, already, in So when do we get a HIV cure?
considered very instrumental in the other African countries like Kenya it was We don’t know. It’s impossible to predict
establishment of PEPFAR. What exactly abolished shortly after its introduction. when you don’t have a scientific answer.
was your role? In Botswana, studies have showed some There is a lot of activity that is going on
Even as antiretroviral drugs were evidence of it being harmful to pregnant around the world but there are two major
quickly becoming available for all, many women. This comes at a time when studies taking place in South Africa. One is
Africans were still dying in the 1981 there’s talk of Africans being used as using Clade C which is a predominant HIV
strange style. So in 2002 I was asked by guinea pigs to test new medicines. What sub type in Africa mostly among women
President George W. Bush to go to Africa would be your views about this drug? and the other is the Imbokodo vaccine
to put together a proposal for a program Dolutegravir is an intergrase inhibitor. candidate both being tested to see if they
to fight AIDS there. He was specific. He It’s one of the best drugs being used will be able to work. We started looking
needed something that would offer both around the world including in the U.S. for a vaccine in 1987 all of which failed. It’s
treatment and prevention. I spent most of in combination with Truvada and it’s impossible to make a prediction because
that year putting together mathematical just a good regimen. The World Health it’s a scientific unknown.
models to help us execute this assignment. Organisation and other institutions have
We knew there would be a lot of questions, carefully looked at it and approved that it’s And it’s still costing the world billions
so we had to work out a procedure to good. I am puzzled by those who think it’s of dollars trying to find. Why can’t
determine things like cost, which countries not a good regimen. researchers abandon it and put all your
to benefit and why and whether to focus One of the problems we have faced over energy and money in innovations that
more resources on prevention or treatment. the years and is not specific for Uganda is have been proven to work?
We had to do a lot of consultations with that whenever therapies are developed; We can do both because clearly even with
people already doing something in these especially by the western world to be the non-vaccine prevention methods we are
countries. When we came to Uganda, used in the developing world, because not decreasing incidence dramatically even
we consulted a researcher called Peter of many years of history of oppression, as science has given us the tools we need
Mugyenyi. He already had a model for there’s always lingering distrust. The only to change the course of the pandemic and
providing treatment where he had come problem is that you have got to make sure ultimately end it. Any argument that this
up with a central core of treatment but that this distrust doesn’t get in the way of cannot be achieved because we do not have
with affiliated clinics to provide care on major benefits for the country. To say that evidence-based tools is no longer valid.
behalf of the center. We compared they are being used as guinea pigs I would Science has given us the tools. They must
notes a lot which of course say is understandable but is just not true. all be applied because ending the pandemic
meant going back and forth, One of the things one has to know is that is a multifaceted challenge, but we know
making presentations all therapies that are proven elsewhere to it is possible. Yet it will not happen
to president Bush be important is not taking advantage of the spontaneously. It will require a global
until he accepted country that is helping. commitment of countries, governments and
the proposal communities to strengthen their health-care
for making a You have been in the laboratory for 30 systems and build the capacity to provide
contribution of years trying to find an HIV vaccine. both treatment and prevention.
$15 billion over Why has it taken you so long to find an
five years. Our effective one?

Nov 30 - Dec 06 2018 17


NEWS ANALYSIS

Opposition politicians say police brutality complicates the process of a national dialogue.

Which way for


national dialogue?
Organisers insist December 12 meet is on but party
leaders bicker over hostile political environment
By Ian Katusiime ment; NRM, FDC, DP, UPC and JEEMMA mitted that their secretary general Kasule

J
has also been conducting several meetings; Lumumba, Director of Legal Affairs, the
ustice James Ogoola is determined to including one at State House Entebbe with Prime Minister Ruhakana Rugunda,; an
have the national dialogue take place. President Museveni, on the same issue. NRM historical, will also attend the meeting
He is the chairperson of The Elders The Netherlands Institute for Multiparty to be held at Commonwealth Resort Mun-
Forum; a group that advocates for Democracy (NIMD), an NGO with offices yonyo on Dec. 12.
healthy politics. It was behind the first ever in Ntinda, Kampala that works to promote Rusa says the Munyonyo meeting will
presidential debate in Uganda in 2016. peaceful and inclusive politics worldwide adopt an agenda for engagement between
The former Principal Judge has traversed gives IPOD a secretariat. Frank Rusa, the the various party leaders.
the country preaching the essence of a NIMD Country Representative, is the Exec- “In any healthy multiparty system, we
national dialogue and he is set on a major utive Secretary of IPOD and is immersed in need to have room to cooperate. We want
meeting of party presidents taking place on the process of the dialogue. this to be a constant feature of our politi-
Dec. 12. However Ogoola and colleagues Rusa acknowledges that Ugandans are cal space where we routinely engage each
in the Inter Religious Council of Uganda always doubtful of the dialogue process other,” he says.
(IRCU), another group pushing for the because of the ruling party. He says they He says the dialogue process started after
dialogue, face invincible odds because of should not be this time. He says this time the contentious 2016 presidential election
controversy sparked by the unprecedented the situation is different and all players rec- although it is just picking up now. Meetings
proposition. ognize that the proposed dialogue between were held between cultural institutions,
Ogoola has found himself in a position the topmost leaders of political parties is civil society, academia but along the way,
where one day, he is announcing how important. momentum was lost. It got worse in 2017
many politicians they have on board for “This time it will be different because when no activity took place as the highly
talks or the number of Ugandans they have there has never been demonstration of a divisive campaign to amend the constitu-
so far consulted and the next day he has to political will like now; the Head of State has tion to enable President Museveni run again
deal with another episode of violent arrest confirmed attendance,” he told The Indepen- neutralised any room for the dialogue.
or torture and its implications for the dia- dent in an interview. But despite his optimism as a facilitator,
logue. Rusa says there is momentum after a Rusa is aware of the political terrain he is
The Inter Party Organisation on Dialogue lull of two years since the 2016 presidential operating in. The torture cases that have
(IPOD); a grouping of five parties in parlia- election. He adds that the NRM has com- been highlighted this year, against opposi-

18 Nov 30 - Dec 06 2018


NEWS ANALYSIS
tion MPs and other political activists are not his view, youth participation should be a
lost on him. central theme of the talks.
“Of course the spirit of the dialogue is He says the same about individuals
undermined when such things happen behind the dialogue. “Some of them are
because dialogue is built on ongoing trust, supporters of Museveni. In IRCU, we have
he explains, “We cannot dialogue in the [Mufti] Mubajje and we also have Ndi-
room, when outside the room you are langwa of the Kibuli faction,” he tells The
kicking me. We are working with all state Independent.
agents.” According to Siranda, the personalities
of individuals behind the dialogue is also
Party leaders speak a sticking issue. He says members of the
James Akena, the president of the National Fellowship of Born Again Church-
Uganda People’s Congress (UPC), and the es, another member of the IRCU, is full of
current chairman of IPOD is optimistic and James Akena Gerald Siranda factions. He adds that some of the bishops
he believes dialogue is best for Uganda’s are too close to Museveni. “There are many
politics going forward. issues; who is the funder of the dialogue? If
He says that any political actor who ment will sit and take a decision,” he said. we are going to ceasefire, can we mobilise
is not interested in the talks either has to Norbert Mao, the president-general freely?”
come up with a Plan B or a formula to alter of the Democratic Party (DP), initially He adds: “We cannot dialogue when
the status quo outside of the processes was enthusiastic about the dialogue but Kawooya, our member is being beaten in
offered by dialogue. switched to say his party was pulling out broad daylight.”
“Sitting and waiting for a changed situ- of the process. Recently, however, DP’s Siranda says the issues they raised have
ation is the least interactive route but may Secretary General Gerald Siranda, told The not been answered a month since they
be construed as simply burying your head Independent that the DP leader will attend wrote to The Elders Forum.
in the sand,” he states in an email to The the upcoming meeting although a number Opposition parties view the ruling NRM
Independent. of issues remain unresolved. party with a lot of suspicion; especially its
Akena agrees with some of his col- “We gave conditions so that the dialogue chairman President Museveni. And Musev-
leagues in politics and observers on the does not turn out like the Nairobi Peace eni’s position will inevitably be a point of
many valid and justifiable reasons why Talks or those in Moshi, Siranda explains, discussion in the dialogue and it remains to
there should not be talks but he is more “We want a dialogue where there is an be seen on the reactions of those attending.
concerned about the uncertainty of the agreeable agenda.” Richard Todwong, the NRM deputy
future. Siranda says the way parties were con- secretary general says any questions of
“Viable and functional political par- sulted by the conveners leaves a lot to be violence or any inappropriate acts the NRM
ties which are able to hold a principled desired. He is critical of the way the con- is accused of should be discussed in the dia-
dialogue across political lines provide an veners acted after they secured the atten- logue. “NRM and all its members have all
institutional mechanism to overcome and dance of President Museveni. committed to the structure of the dialogue,”
mitigate unplanned transitions, even if the “They started waving to all how NRM he says.
desired well managed transition proves was part of the talks. Even the NRM Secre- “This will be an issue of brainstorming,
unassailable.” tary asked them; have you consulted us as all issues will come up. It is too early for
FDC as the largest political party in the a party? That is why you saw the deputy anyone to accuse the NRM of not being
opposition has been open about its dis- attorney general saying contradictory committed. All issues shall be dealt with.”
comfort with some aspects of the dialogue things about the dialogue? I don’t want It is proposed that after meeting in
although sources in the party say President my party whip to say something different December, the respective Secretaries
Patrick Amuriat will join his counterparts. from me.” General of the parties will be meeting often
Party spokesperson, Semujju Nganda, He says in the meeting of Dec. 12, the between January and May next year.
who doubles as the Opposition chief whip position of Museveni should remain as All seems to be in place for the big meet.
in parliament issued a statement saying party chairman strictly. “The overall goal is But it is a longtime between now and
the party does not regard Museveni as the multiparty growth,” he says. Dec. 12, especially in Uganda’s political
legitimately elected President of Uganda. Siranda adds that beyond constitutional environment which can be quite volatile.
“If that issue is part of what will be dis- and electoral reforms, the goal should be
cussed in December, then FDC manage- how to build capacity of political parties. In

Nov 30 - Dec 06 2018 19


news analysis

Black Friday
By Colleen P. Kirk

B
lack Friday, the most
celebrated shop-
ping day of the year,
abounds with tales
of fistfights over discounted
Why do shoppers throw punches over bargains?
televisions or even stampedes
as consumers rush to get that
A marketing expert explains the psychology
low-priced sweater they saw in
an ad. brag about our purchases, valu- suggest and vote on new chip edge. If you grew up with a
Many people chalk it up to able word-of-mouth advertising flavors. By tickling custom- product, have always used it or
bad behavior. But marketers for those brands. ers’ sense of ownership in the have a special or unique way of
like me have a term to describe While the concept itself is product and the brand, it was a using it, the odds are good you
one feeling that contributes to it: well-known, there’s been little remarkable success in markets feel psychological ownership
psychological ownership. research on how people actu- around the world. over it.
Have you ever felt as if ally react when someone seems But it doesn’t have to be a Furthermore, you can feel
another driver stole your park- to infringe on their psychologi- major campaign. A simple ad or psychological ownership over
ing spot? Or were supremely cal ownership. My colleagues invitation to touch can have the pretty much anything that
miffed when someone else Joann Peck and Scott Swain and same impact. doesn’t legally belong to you,
nabbed the last red sweater that I conducted several studies to There are three factors that from the last chocolate truffle
you had your eye on? And isn’t find out. foster psychological ownership: in a display case to the dream
it irritating when someone else If you can touch or control home you found on Zillow,
receives credit for your idea? If That feeling that something something or even imagine and even intangible things like
so, you experienced psychologi- is yours doing so. An example is putting ideas.
cal ownership. something in your shopping
In other words, we often Psychological ownership is cart – whether physical or vir- Psychological ownership in
take ownership over a thing an important concept in mar- tual online. If you have cus- action
or service in our minds before keting. Sellers are motivated to tomised something or invested
we actually give up the cash elicit it because having it makes your efforts in designing it. To find out how people react
that makes it legally ours. And you want to buy their goods. When the server brings the when their psychologically
retailers use this psychological An example of this is potato food to your table and places owned property is threatened,
trick to get us to buy more of chip maker Lay’s “Do Me a your dish in front of someone my colleagues and I conducted
their stuff – or spend more. It Flavor” contest, which began in else, you’re quick to say, “That’s a series of experiments. Each
also makes us more likely to 2008 and invited customers to mine.” And intimate knowl- was designed to elicit or manip-

20 Nov 30 - Dec 06 2018


news analysis
tipped the server 25 percent less. In a sub- territorially.
sequent survey, these participants reported In a separate experiment, we wanted to
that they felt the server had infringed on see if more narcissistic people were more
their territory and said they would be less likely to respond territorially when some-
likely to return to such a restaurant. one infringed on their “property,” in this
A second experiment extended this ter- case a delicious-looking pizza. We elicited
ritorial feeling to something less tangible: psychological ownership of the pizza by
an artistic design. As part of volunteer work asking participants to imagine they had
for a local nonprofit, 162 university students traveled a long distance just to get it.
decorated folders for children’s educational As they were standing in front of the
materials. They either copied a design onto pizza stand, a stranger came up and said
the folder – which elicits low psychological either “I am not familiar with this pizza”
ownership – or created their own design – or “I know this pizza well. I call this pizza
leading to high psychological ownership. ‘Antonio’” – the latter phrase meant to sig-
After they finished, a staff member walked nal ownership. At the end of the survey,
up to half the participants and said, “That we measured narcissism using a common
looks like my design!” personality scale.
Later, as the staff member left the room, We found that customers who scored
she “accidentally” dropped a pen, sup- high on narcissism expected others to be
posedly without noticing. We found that more aware of their feelings of ownership.
participants who designed their own folder Thus, they were more likely to feel infringed
and were told by the worker that it looked upon and respond territorially to the strang-
like hers were 66 percent less likely to pick er who signaled ownership.
up the pen and return it.
A later survey showed that these par- How to cope
ticipants indeed felt that the staff member Together, these studies demonstrate
infringed on what they considered theirs. we really don’t like it when others show
As a result, they were also less likely to signs of ownership of something we feel
donate to the nonprofit or volunteer again. is “ours,” particularly if we believe they
Interestingly, they reported they would should know of our prior claim. Further-
be more likely to post a selfie with their more, we might retaliate when given a
folder on social media – in other words, chance.
they tried to defend their psychological Consumer responses when this happens
ulate feelings of ownership in consumers ownership by communicating their own can vary from simply abandoning the loca-
and then have other people communicate, claim to ownership. tion to talking badly about the business or
or signal, psychological ownership of the person involved. In other words, companies
same product. Limits of psychological ownership that play on this feeling of psychological
In the first one, 58 college students par- Other similar experiments showed there ownership to spur sales should bear in
ticipated in a simulated dining study in are some limits to psychological ownership mind that there’s a cost as well, particularly
our lab. At one point, they each poured and who’s more susceptible. when a product or its low price is scarce,
themselves a cup of coffee from a bar and One such experiment, conducted online, such as on Black Friday.
customised it with condiments like sugar, involved asking participants to imagine So as you hunt for bargains next time,
frothed milk and syrup, which helped they were queuing to buy a comfy sweater bear in mind that psychological ownership
create strong feelings of ownership of the for an upcoming social event and told to sets in long before a cashier puts your stuff
coffee. close their eyes and picture themselves – or a fellow shopper’s – in a bag. My best
Later, after serving participants a piece of wearing it. They were then told, at random, advice is be polite.
cake at their table, a waiter asked, “Is every- to imagine either that another customer
thing OK?” The waiter also, in half the cas- reached out and touched the sweater or Colleen P. Kirk is Assistant Professor of
es, moved their coffee cup for no apparent asked permission to do so. We found that Marketing, New York Institute of Technology
reason. After the “bill” came, we found that asking first reduced the participant’s feeling Source: The Conversation
participants whose coffee cup was moved of infringement and tendency to respond

*terms and conditions apply

AfricellUG @AfricellUG

Nov 30 - Dec 06 2018 21


news analysis

Morocco launches Africa’s


first high-speed train
By Agencies
Morocco’s King Mohammed VI
and French President Emmanuel
Macron launched on Nov.15 the
first high-speed train in Africa.
The Moroccan king and Macron
took the train from the northern city
of Tangier to arrive in the capital
Rabat, in a ride that lasted 80
minutes, compared to around four
hours for a normal train ride before.

C
alled Al Boraq, the 200-km high-
speed rail line has been built
with a budget of more than US$2
billion (Approx.Shs7.5 trillion or
Shs37 billion per km).
In addition to over US$600-million
financing from Morocco, several At that time, project was set to go company’s pride to be selected to deliver
foreign countries contributed to the around 15 per cent over budget, but Africa’s first high-speed train.
implementation of this project. ONCF head Rabii Lakhlii said the project “This inauguration is a significant
France contributed half of the total had still cost “less than €9 million euros milestone for this prestigious project
budget of the project, while the rest was per kilometre (£13million per mile), which will allow Moroccan people to
mobilised by loans from Gulf countries, compared to a European standard of €20 benefit from an incredible passenger
namely Saudi Arabia, Kuwait, and million euros per kilometre”. experience. Alstom is committed to
the United Arab Emirates. The French Alstom’s Avelia Euroduplex trains remaining a close and long-term partner
Development Agency and Morocco’s are articulated double-deck units that for Morocco, addressing its mobility
national railway operator, the ONCF have been built with Morocco’s climate needs and supporting its upcoming
signed the deal. in mind. Each train comprises eight cars, transport projects.”
The new train exceeded a speed of 220 including a catering carriage, and will It currently costs in the region of 136-
miles (352 km) per hour in the tests, but able to hold more 533 passengers. The 261 Moroccan Dirham (US$15-US$28) to
it will travel at a speed of 320 km per director general of ONCF, Mohamed take the line all the way from Casablanca
hour during normal operation. Rabie Khlie, has stated on record of to Tangier on the ONCF’s existing
As a result, the journey time between the country’s aim to double the current service, and Lakhlii said that tickets will
Tangier and Casablanca will be reduced annual ridership figures to six million cost about 30 per cent more on the speed
from five hours to two hours and 10 people. train.
minutes. With the line, Morocco is hoping to Moroccan leaders have heralded the
Morocco becomes the first African give its economy a boost by effectively project as a key step in modernising the
country to operate high-speed trains. bringing business centres closer together country’s infrastructure.
The first of the trains received by the and improving connections for the But opponents argued that the money,
Office National des Chemins de Fer country’s well-established tourism the total cost of which is around €2
Marocain (ONCF) are manufactured industry. billion, could have been better spent in a
by Alstom; a French rail transport It has also been reported that the country where many live in poverty.
multinational. Up to 14 high-speed trains French car manufacturer, Peugeot, is Morocco - which gained its
in total were proposed to be supplied considering building a manufacturing independance from France in 1956 - has a
by Alstom, 14 in total, each capable of plant in Kenitra – one of the stops on the gross national income of just 26,800MAD
carrying 533 passengers. new high speed line. (US$2,825) per capita, according to the
The line has been eight years in the Alstom has said that the new trains World Bank.
making. The route, first mapped out will offer passengers with mobility issues Supporters argue, however, that if
in 2005, was made more complex by big benefits owing to the open-plan the new high-speed railway succeeds
hilly terrain and strong winds and layout, while passenger information in attracting more tourists, it will boost
required the building of several viaducts have also been given an upgrade with what is already one of the most lucrative
including some more than two miles Arabic- and French-enabled systems sectors in the Moroccan economy.
long. Engineers in Morocco started on board every train. Henri Poupart-
testing the in 2017. Lafarge, the Alstom CEO, spoke of the

22 Nov 30 - Dec 06 2018


Umeme workers erecting electricity poles.

Umeme’s new target


ERA wants the power distributor to
connect more customers, cut losses

S
By Julius Businge the total excess revenue earned as According to ERA, the company has
per modification number five of their consistently reduced losses for the ending
elestino Babungi, the contract. period but performed below the target;
managing director of The public hearing is one of the 27.3% against a target of 27.0% for 2011,
Uganda’s largest power consultative meetings that ERA is 26.1% against a target of 25.5% in 2012,
distribution company, conducting in accordance with section 24.5% against a target of 23.0% in 2013,
Umeme, wants the industry 44 of the Electricity Act, 1999 to set new 21.3% against a target of 20% for the year
regulator, Uganda Electricity targets for Umeme. 2014, 19.5% against a target of 18.3% for
Regulatory Authority (ERA) to set for According to ERA’s Secretary and 2015, 19.1% against a target of 16.9% in
them fair targets amid high consumer legal expert, Harold Obiga, focus group 2016, 17.2% against a target of 15.7% in
expectations. discussions amongst other stakeholders 2017 and 16.5% against a target of 14.7%
Babungi said fair targets benefits all will continue and that the final decision of in 2018.
players in the industry arguing that this matter will be made in January 2019 The other targets are in regards to
aggressive targets would require more and effected on March 1, 2019. Distribution Operation and Maintenance
resources to invest in the network hence Costs (DOMC).
causing unwanted increases in the power Umeme’s application The company wants these set as follows
tariff. According to its application dated for the new six years; Shs235.2bn (for
He was speaking to The Independent March 28, 2018, the company was 2019), Shs255.5 (2020), Shs274.2 (2021),
on the sidelines of a half day public supposed to present performance for the Shs287.4 (2022), Shs299.0 (2023), Shs317
hearing in respect of its application review period 2012 –2018 and anticipated (2024) and Shs338.2 (2025).
for modification of License No.048 or trajectory performance for the coming In the ending period, according to
specifically relating to the performance six years to partly inform the decision on ERA, the company incurred higher costs
parameters for the coming six years from new targets – to be set by ERA. [DOMC] compared to the target with
March 2019 to March 2025, following The company’s proposed energy loss the variances being Shs12.5bn in 2012,
the expiry of the current targets come trajectory for the year 2019 is 15.24%, Shs27.6bn in 2013, Shs34.4bn in 2014,
February 28, 2019. in 2020 (14.63%), 2021 (14.75%), 2022 Shs32.1bn in 2015, Shs13.8bn in 2016 and
The company also wants amendments (14.50%), 2023 (14.23%) and 2024 Shs18.3bn in 2017.
done in respect to computation of (14.36%). The other area of targets will be on

Nov 30 - Dec 06 2018 23


business
revenue collection though Umeme or we have the most qualified competent For instance, he said, in 2005 the
ERA did not indicate what the former experts on the continent,” she said. industry was collecting Shs160bn in
would prefer for this target. Commenting on the power distributor’s addition to costing government in
Available figures, however, shows that performance, she said the regulator terms of subsidies but last year alone
the company performed above target would want Umeme to improve in all (2017), it collected Shs1.6tn and paid the
for the ending period. For instance, the areas. transmission company Shs1tn.
company hit the 99% collection target for She, however, said the company has He asked government to deliver on
2011, 94% in 2012 and 100% against 97.3% performed well as “we were coming from their promise of increasing electricity
at some point in the ending period. a vertical organisation (UEB) when all access through free connection policy,
In 2014, the company recorded a 99.1% parameters were low.” increasing uptake by directing power to
collection point against a target of 97.50%, “What we need is to balance the industrial zones, increasing affordability
a 98.2% collection against a target of investment we are putting in to bring by brining onboard more generation
97.7% in 2015, 98.4% against a target of down the losses and the tariff so that we plants and investing more in transmission
97.9% in 2016 and 98.9% against a target arrive together,” she said adding, “our lines.
of 98.2% in 2017. ERA set the target for demand is improved efficiency, improved He said the company needs regulatory
2018 at 98.5%. performance and that is why we are here support during this period and the
Participants, however, raised concerns to tap into the public’s input by way of amendment in the electricity act to curb
on whether ERA had capacity to comments.” power theft so that they can achieve the
verify Umeme’s set targets and actual She added that part of ERA’s work is targets that are set.
performance. to represent the views of other Ugandans “My message is we need to continue
The other issues were the high who are unable to interpret the numbers investing in the network to improve
electricity costs, existence of power to ensure they get value for the money reliability. We need a very strong
outages and or unstable power amidst they are paying. backbone to deliver power so there is
excess power generation capacity, and In terms of outages, Tibalwa said reliability in the country,” Babungi said.
whether the distributor would provide it is being handled at two levels – at He added that the public hearing was
bulky or aggregate meters for large generation and distribution. an opportunity for them to highlight on
consumers. “The beauty is that when they (Umeme) the achievements for the last five or six
Poor quality of prepaid metres, do not achieve their target the consumer years as well as respond to consumer
opaqueness in computation of the tariff does not compensate them; they dig into queries.
also took a center stage in the discussion. their return and their profit and that “For us the last period has been great,”
incentivises them to run around to ensure he said citing introduction of prepaid
ERA, Umeme responds that they achieve the target,” she said. metering, cashless payment, staff training
In her response, the ERA Chief Officer She said the company has the and growing the distribution network.
Eng. Ziria Tibalwa Waako, said they have responsibility to ensure that power supply He said the company plans to continue
more than enough capacity in terms of is reliable in line with the concession pressing forward to achieve more
human resource and technology to verify agreement with the government. efficiency in electricity distribution to more
Umeme’s performance targets. On his part, Babungi said they have than 1.3million customers that it serves.
“We have the experts that are being performed well and they expect fair
benchmarked even internationally….and targets in the coming six years.

Afreximbank seeks to recruit


700 banks as agents
By Isaac Khisa Morocco. is in talks with South African lender Absa

C
Kamel said the new initiative was to about selling its local unit as the French
airo-based African Export-Import bridge the gap created as international bank prepares to pull out of Africa’s most
Bank (Afreximbank) is seeking banks pull out of the continent and that it industrialised economy.
to recruit at least 700 commercial is intended to promote intra-African trade, Obi Emekekwue, Head of Global Com-
banks as agents across the continent which currently stands at 16%. munications at the bank, said interested
to extend financial services to Small and Last year, UK-based Barclays Bank pulled African banks should make application to
Medium Enterprises (SMEs). out of the African market seeking to concen- Afreximbank for consideration.
Amr Kamel, the Bank’s Executive Vice trate in Europe. “These banks will have access to a vari-
President, Business Development and Cor- The French bank, Groupe BCPE, said it is ety of credit lines, enabling them meet the
porate Banking, said the multi-lateral lender considering divesting its banking interests needs of their customers,” he said, adding
has on board about 170 African banks and in Africa to the Moroccan banking group that a small fee will be charged upon dis-
that the target is to have 700 banks by the BCP which is in line with Groupe BPCE’s cussion.
end of next year. strategy of refocusing on sectors and This development comes as Afreximbank
“The purpose of this is to ensure that regions considered to be priorities for devel- plans to disburse $25 billion to support
our services reach too many business and oping the group’s business lines. BCPE intra-African trade for five years ending
SME’s,” he said during the 18th edition of has operations in Cameroon, Madagascar, 2021. Last year, the bank approved more
Afreximbank’s Annual Seminar on Struc- Congo and Tunisia. than $60 billion in credit facilities to African
tured Trade Finance held in Casablanca, Similarly, French-based Societe Generale businesses.

24 Nov 30 - Dec 06 2018


business

How to stir industrial growth


Friedrich-Ebert-Stiftung offers suggestions
ahead of new policy launch
By Julius Businge Government should also increase public

P
investment to crowd-in private investments
olicy documents alone will not in addition to developing guidelines for
industrialise Uganda. The gov- accessing industrial development incentives
ernment should lead this agenda such as tax exemption schemes and duty-
by acting and learning from the drawbacks for manufacturers.
mistakes and failures. Also industrial devel- To successfully implement agro-based
opment should become a political priority industrialisation, the issues paper says that
in action and funding, not in talking and government should holistically invest in
policy papers. smallholder farmers along the entire value
That was the summary of issues that chain.
emerged from the half day meeting organ- This is through increasing the agriculture
ised by the Office of the President and budget to 10% and organise the smallholder
Friedrich-Ebert-Stiftung Uganda office at farmers into cooperatives.
the Kampala Serena Hotel on Nov.20. President Museveni Amelia Kyambadde The other area is on legislating and
Attended by close to 200 people from enforcing competition and anti-trust laws to
government, private sector, academia and promote and regulate competition among
research and development partners, the of industrialisation by ensuring capitalisa- the private sector players and ensuring that
meeting themed ‘an inclusive industrial tion of Uganda Development Corporation other sectors like energy, oil and gas and
policy review dialogue – to inform policy by the state and giving it full support to agriculture are complemented.
development’deliberated on the country’s incubate industries. The policy should also consider the pro-
industrial policy journey and plans ahead. It adds that investments should be in stra- motion of exports while satisfying the local
It comes as government through the Min- tegic industries such as textile and leather, demand in addition to promoting local
istry of Trade, Industry and Cooperatives is iron and steel, cement, petroleum, chemical, content through encouraging equity and
in the final stages of completing the review pharmaceutical and metal industries. shareholding.
of the 10-year National Industrial Develop- They say these industries are strategic in
ment Policy building on the old one whose the sense that they act as stimuli to econom- President’s office ready
implementation stood at only 30%. ic transformation due to their importance in Wills Bashasha, the acting secretary in the
FES’ Resident Representative for Uganda, economic development, linkage with other Office of the President welcomed the rec-
Mareike Le Pelley, said the policy review industries, and ability to create productive ommendations.
process is vital for Uganda’s development jobs. He said the 10-year year industrial
as it will connect with key local, regional FES also calls on government to harmo- policy will provide the strategic direction
and international development goals. nise the National Industrial Development for industrial development in Uganda and
This includes among others; Uganda Policy (NIDP) with other policies and bring about the required transformation
Vision 2040 – where the government seeks strengthen the monitoring framework. Also that will propel Uganda to a modern and
to reform and optimise the industrial struc- revise the key national policies, including prosperous country by 2040.
ture through establishing a modern indus- but not limited to: Investment Code, 1991; He added that the policy will build on to
trial system, the National Development Plan National Trade Policy, 2007; National Land what the old one achieved especially on the
II that prioritises the development of the Policy, 2013; and National Agricultural legal and policy framework where a num-
industrial sector, Sustainable Development Policy, 2013 among others to refocus them ber of bills and policies were developed to
Goal No.9 that calls for the promotion of towards development of home-grown guide its implementation.
inclusive and sustainable industrialisation industrialisation. He outlined these as: the National SME
and the East African Community Industri- They suggest the need to re-orient the Policy 2015, National Grain Trade Policy
alisation Policy 2012 – 2032. macro-economic framework (fiscal, mon- 2015 and Packaged Water Policy, 2015 as
The organisers also sought to use the etary, exchange rate, capital account and well as the passing of Uganda National
meeting to find solutions to sector challeng- labour market policies) towards supporting Bureau of Standards (UNBS) Act (Amend-
es including; poor coordination, planning the country’s industrialisation agenda. ment 2013) and Uganda Development Cor-
and budgeting processes, lack of compe- “The lending and exchange rates that that poration (UDC) Act 2015.
tences within the relevant institutions, poor have consistently remained high should be Bwanga George, the head of infrastruc-
communication, corruption, bureaucracy, reduced to increase capital to manufactur- ture, industry and physical planning at
low levels of technology, limited financial ing firms and reduce the cost of importing National Planning Authority said they
resources and infrastructural bottlenecks. industrial raw materials,” the paper says would support the implementation process
in part, adding that perpetual restrictive of the policy so that the country can achieve
FES recommendations monetary and fiscal policies at a time of GDP per capita of US$9,500 embedded in
The Issues paper that was drafted by industrial establishment and upgrading Vision 2040 and industrial sector contribu-
FES and the Makerere University Business should be avoided since they tend to reduce tion to GDP would increase from the cur-
School economics lecturer, Ramathan Ggoo- the growth of domestic demand and pro- rent around 9% to 31% by 2040.
bi, say there is need to go beyond facilitation duction.

Nov 30 - Dec 06 2018 25


business

New e-passport: All


you need to know
The document is set make customs clearance faster
By Isaac Khisa Fees:

T
The new International
he Directorate of East African e-passport
Citizenship and shall cost Shs250, 000 for
Immigration Control the Ordinary e-Passport
is set to rollout a category under the normal
new International East service standards of seven
African passports to replace days. Those who want the
the current ones. Express service that takes
The exercise that starts in two days will be required to
January 2019 is an initiative pay an extra fee of Shs150,
of the EAC Heads of State 000. Official passports
to synchronise passports shall cost Shs400, 000 while
across the region. The Diplomatic Passport shall
e-passport is expected to cost Shs500, 000.
comply with guidelines set New applicant’s who
by the International Civil paid Shs 150,000 and are yet
Aviation Organisation, to receive their passports
making it acceptable will be required to top
around the world. up Shs 100,000 for the
Kenya is already issuing e-passport. Those who paid
the latest passports in an through the Express service
exercise that started last scheme will get the new
year while Tanzania plans e-passport at no additional
to do so in 2020. cost.

Here is all you need to How transition is to be


know about the planned managed:
and National Machine Temporary Movement
e-passport. readable passports (Black, Permits and Certificates of In the interest of
Distinct features: The Red and Green). Identity. providing un-interrupted
new International EAC Application/Renewal: service during the
e-passport will be a Applicants for the How it works: transition, some e-passports
physical passport like the e-passports will be required The new passport will will be issued to citizens
current ones but will be to appear in person at the ease clearance at the during the pilot period
embedded with a secure Passport Offices and have entry/exit points. It will prior to commissioning the
electronic chip that will their facial and finger facilitate use of e-gates for e-Passport System. These
contain more details prints taken. Ugandans self clearance, automated e-passports, according
including a bio data page with a valid National issuance of Boarding Passes, to Benon Mutambi, the
that will have special Identification card will and quicker processing permanent secretary in the
security features. not need to go to the Local across airports worldwide Ministry of Internal Affairs,
The new passport will Council for clearance. where e-passport reader will be valid and can be
also have more security Those without IDs will be equipment is installed. used for travel, but their
features like the Coat of required to register with chips will be inactive.
Arms, the Crested Crane, NIRA prior to applying for Issuing periods: Those who will be issued
the Mountain Gorilla, the the Passport. e-passports will be issued with e-passports during the
Independence Monument, Those intending to apply for a period of two years pilot phase will be required
Murchison Falls and the for new passports or to do from 2019 2021. to return to immigration
fishing man. renewal are encouraged to headquarters to have their
Phase out East African do so in January 2019 unless Diaspora community – biometric features taken
Passport: The new there’s an urgent need to Ugandans in the so that their chips are
International East African travel within the remaining Diaspora will be able to activated. This will be done
e-passport will replace and period. Those travelling make applications for the after January 2019 but not
eventually phase out the to Kenya and Rwanda are e-passports at seven missions later than January 2021.
current East African (Blue) advised to use their ID, abroad by November 2019.

26 Nov 30 - Dec 06 2018


Executive Style

International money
transfer costs set to drop
How big is your business How does Uganda compare

W
at the moment? Catherine with other markets in this line
orldRemit Wines is a of business?
processes Uganda is one of the top five
Co-founder of
more than remittance receiving countries
one million WorldRemit - a in Africa for WorldRemit, in
transactions a month and global money addition to Ghana, Nigeria
has 3.5 million customers. transfer and Kenya. The World Bank
Our business in Uganda is company. She estimates that the country
growing rapidly, driven by spoke to The received over US$1.4billion in
our partner network. We remittances in 2017, accounting
are proud to partner with
Independent’s for 5% of its GDP. This figure
11 major Ugandan financial Julius will continue to rise, and Worl-
institutions including lead- Businge dRemit will play a key role in
ing banks like Centenary about the driving this growth. Top send
Bank, Standard Chartered, trends in the countries with WorldRemit to
and Stanbic Bank; mobile international Uganda include the UK, Swe-
money services like MTN den, Australia and the United
mobile money and Airtel money States. Now having secured all
money as well as a range transfer 50 state licenses in the US, we
of microfinance partners market. expect remittances sent from
offering cash pick-up ser- the US to Uganda to continue
vices. We have noticed that accelerating. We are continually
Ugandans are increasingly expanding our partner network
sending mobile-to-mobile re- with more than a third of our Why should people trust your to meet our goal of connecting
mittances, which have grown global transfers and just under service? 10 million people in emerging
by over 150% between October half of our transfers to Africa Once you have made a markets by 2020.
2016 and October 2018 reflect- going to mobile money ser- money transfer, you can easily
ing East Africa’s status at the vices. track exactly where your money What new offers should your
top destination for mobile has gone. You can call customer customers expect in the near
money remittances worldwide. The average cost for send- service or even more quickly future?
ers of remittances stands at take advantage of our new ‘track WorldRemit has launched
Of what importance was the around 7% which is higher your transfer’ feature on the inter-African money transfers,
financial inclusion week that than the average 4% cost that WorldRemit app. You have to enabling customers in Africa to
you attended in Kampala re- is recommended by the G20 simply tap on the ‘track your send as well as receive money
cently to your business? and the UN. When should transfer’ on the transfer confir- transfers to 145 markets to drive
I co-founded WorldRemit customers expect the 4%? mation screen and then be taken down the cost of remittances
in 2010, and over the last eight The global average cost to the transfer status screen to (an average cost of 9.4% for
years we have disrupted an for sending money is around check the transfer status. Our sending US$200, according to
offline sector that has under- 7.1%. To send to Sub-Saharan system gives customers instant the World Bank) and advance
served millions of migrants Africa, it is 9.4% according to notifications on the status of regional integration. This new
across the globe by bringing the World Bank. Money trans- their transactions. service will first launch in East
it online. It is our vision to fer services like this were built What opportunities does digi- Africa.
accelerate financial inclusion for a different time - an offline tisation of businesses offer to
through our digital service. world. At WorldRemit, we money transfer ventures like What is the appropriate strat-
Attending Kampala’s Financial want to use our digital model WorldRemit? egy for running a global busi-
Inclusion Week strengthens to drive down these costs. Whilst the US$600 billion ness?
our resolve to accelerate inclu- When using the WorldRemit (Shs2trilion) remittance market To build a global business,
sive finance for the benefit of app or website to send US$200 remains predominantly cash- you must follow global trends.
our customers across the globe. to MTN or Airtel mobile wal- based, this market is beginning South-South trade, migration
One billion of the 1.7 billion lets in Uganda it costs our cus- to move online. By 2021 it is and remittances are on the rise,
unbanked people in the world tomers US$2.99, which is 1.5% estimated that around 60% will and regional integration within
already have access to a mobile of the total transaction. This fee be online. Increasing cellular the global South is accelerating.
phone – meaning they poten- is significantly lower than the subscriptions, the rise of mobile- We see this as a key strategic
tially have access to financial average cost. Competition and to-mobile remittances and the area of growth for our business.
services for the very first time. digital innovation will continue convergence between social To capitalise on these trends we
Mobile money is an expanding to bring down the costs for the media and money transfers are are launching receive countries
industry and is an extremely benefit of the customer. the main factors driving the digi- as send countries.
strategic part of our business tisation of the remittance space.

Nov 30 - Dec 06 2018 27


Business
PENSION HOSPITALITY

NSSF unveils new payment plan Hilton Garden Inn to open


qualify for age and 13 properties next year

H
withdrawal benefits.
ilton Garden Inn has announced
Once embraced by the
the opening of 13 new properties
members, Ayota said
in six countries across the world in
it will enable the Fund
the following months, several of
to have more funds to
them in Africa.
invest in different areas.
Hilton’s upscale brand plans to tap into
Currently it has slightly these new destinations by offering guests
over Shs10tn worth of their signature combination of “warm hos-
assets. pitality, featuring enhanced food and bever-
Meanwhile, the Fund age offerings, modern and contemporary
was on Nov. 14 declared decor, and the brand’s hallmark bright and
the overall winner of the airy design.” The brand has experienced
NSSF Head of Marketing Barbra Arimi (L) and NSSF Deputy MD, Patrick 2018 financial reporting significant successes in the run up to this
Ayota addressing media during the launch.   Courtesy Photo. awards organised by year’s fourth quarter, and during the first

A
the Institute of Certified three quarters Hilton Garden Inn opened
fter consulting a avoid misappropriation Public Accountants of an incredible 38 properties in 16 different
good number of of their savings. Uganda (ICPA-U).  It countries including one near Jomo Kenyatta
its members, the The Deputy Managing was recognised for International Airport in Nairobi,Kenya.
National Social Director of the Fund having presented an A number of these new hotels are virgin
Security Fund has put in Patrick Ayota unveiled impressive and highly ventures for the Hilton Garden Inn in Ugan-
place a benefits payment the product on Nov.21 in innovative annual da, France, Zambia and Albania.
plan that will allow Kampala dubbed ‘NSSF report that showed high The beauty of these new hotel openings,
qualifying members Draw Down Payment standards of financial apart from expanding the brand’s portfolio
to retain part of their Plan’. reporting covering areas into new destinations, is that guests will
savings with the Fund at He said it would of environment, social be encouraged to travel and explore some
the point of exit so as to benefit members who aspects and more.  locations that they may not previously have
thought of.
aviation Construction

Ethiopian Airlines ups Hima cement launches new cement brand


Mogadishu flights
O
n Nov.9, Hima “Our products adhere to
Cement an- the stringent quality stan-

E
nounced the dards and undergo very
thiopia’s national car- launch of Supa- strict testing procedures
rier, Ethiopian Airlines, set cement brand which it to ensure reliability,” Sse-
has announced plans said comes to reinforce the makula said.
to have daily flights company’s commitment to He said that SupaSet is
between Addis Ababa and market innovations. suitable for high strength,
Mogadishu starting Dec.01, Launching the brand at medium and low strength
less than two weeks since the the company’s offices in concrete projects that
Kampala, the Marketing include among others,
carrier re-launched flights on
Director, Allan Ssemakula flooring for both domestic
the route.
said Supaset 32.5R is one of and industrial purposes,
Presently, Ethiopian Airlines
Hima Cement Marketing Director, Allan Ssemakula the brands buyers can rely making foundations and
operates three weekly flights.
(R) and others unveil new Supaset 32.5R cement. on during construction. blocks.
Seeing neighbours Kenya
Airways also jump on the aviation
bandwagon a few days ago
with Mogadishu flights has Fastjet now majorly owned by Solenta

S
Ethiopian promptly upped the
ante with the announcement outh Africa’s Solenta Aviation has become daily operations between Harare and Bulawayo
of daily flights via their hub in the majority shareholder in Fastjet but to also enhance on time dispatch reliability
Addis Ababa. PLC following the recent acquisition of on the other routes from Harare to Johannesburg,
Meanwhile has Ethiopian additional shares. Harare to Victoria Falls and Victoria Falls to
also taken delivery of the 4th Solenta Aviation increased its shares from 29.8% Johannesburg. For Fastjet Mozambique are
of 26 on order Boeing B737Max to 54.3% automatically placing it in the driving the prospects now bright as new routes are
aircraft earlier this month, able seat of fastjet and its operations in operations in reportedly being lined up, not just domestic
to uplift 160 passengers in the Zimbabwe and Mozambique. but also into the region. Fastjet Tanzania will
dual cabin configuration of It is also understood that the Fastjet Zimbabwe remain with two Embraer E190 aircraft while
business and economy classes. shareholders will sell their majority share to a new the planned introduction of three ATR72-600
The delivery has brought the Solenta controlled company, according to media aircraft has been shelved and the planes will be
Ethiopian Airlines fleet to now reports. Fastjet Zimbabwe’s fleet has been boosted redeployed elsewhere.
105 operating aircraft. with another Embraer ERJ145 to cater for double

28 Nov 30 - Dec 06 2018


Business

Stanbic to open three


more incubation centres
By The Independent port and lack of skills includ-

S
ing entrepreneurial, manage-
tanbic Bank is set to ment, marketing and financial
open three more busi- planning.
ness incubation centres “Stanbic Bank, through this
countrywide as it seeks incubator, is nurturing SMEs
to tap into investments in the in order for them to develop
oil and gas industry ahead of and grow by bridging the
the production. identified gaps,” he said.
Patrick Mweheire, the He said it is prudent that
bank’s Chief Executive, said local companies grab a share
the lender will open the three of the oil and gas investment
training centres in Mbarara, to stimulate economic growth
Gulu and Mbale next year. and development.
“This is meant to extend Uganda hopes to invest
MTN Uganda CEO Wim Vanhelleputte (L) flags off runners for the MTN services closure to the people nearly US$15-20bn in oil and
Kampala Marathon on Nov. 25. The proceeds of the 2018 MTN Kampala who need this kind of train- gas infrastructure that among
Marathon will support maternal health countrywide.   Courtesy Photo. ing,” he said at the Stanbic’s others includes a refinery and
business incubator in Kololo, pipeline ahead of oil produc-
Kampala, in which 420 entre- tion slated for the next two-
preneurs from 119 SMEs were four years.
awarded with certificates upon The bank’s Head of Enter-
completing various courses. prise Development, Tony
Mweheire said SMEs are Otoa, said it is the lender’s
key engines of economic interest that majority of the
growth in the country employ- Ugandan SMEs are equipped
ing approximately 2.5 million with the necessary skills,
people, contributing 20% of knowledge and understand-
Gross Domestic Product and ing of the requisite standards
producing 80% of Uganda’s required to successfully
manufactured output. participate in the oil and gas
He, however, said they con- sector, and to run their busi-
tinue to be plagued with chal- nesses in a sustainable and
lenges that limit their potential, profitable manner.
Irene Muloni (centre) flanked by Vivo Energy top executives including lack of financial sup-
performing a traditional activity during the official launch of the
company’s new fuels with dynaflex technology at Serena Hotel on
Nov.22.   THE INDEPEPENDENT/JULIUS BUSINGE

Weekly share price movement (Nov 19, 2018)


Security Nov 19 Oct. 26 Movement
BATU 30,000 30000 00
BOBU 139 140 0.7
CENT 1,015 918 10.5
QCL 255 253 0.8
DFCU 845 849 0.5
EABL 6,017 6,644 9.4
EBL 1,422 1,438 1.1
JHL 15,225 15,850 3.9
KA 349 426 18.0
KCB 1,413 1,484 4.8
NIC 15 16 6.3
NMG 2,519 2,579 2.3
NVL 340 350 2.8
dfcu Executive Director, William Sekabembe (L) hands over a dummy
SBU 32 33 3.0
cheque to the Minister of State for Foreign Affairs, Henry Oryem
UCHM 23 24 4.1
Okello on behalf of Kitgum All Saints Cathedral Bisho consecration
on Nov.23.   Photo by Silver Ofwono. UCL 20 23 13.0
UMEME 340 347 2.0
ALSI -- -- --

Nov 30 - Dec 06 2018 29


COMMENT
By Bill Emmott
When leaders won’t leave
For every leader, managing your succession is a key
task and one that must not be left until it is too late

T
he spectacular rise and fall of Carlos directors. Such a sudden, belated disclo- The main moral of this tragic tale,
Ghosn, “Le Cost Killer” who saved sure of executive malpractice casts a dark however, does not stem from a struggle
Nissan after 1999 and built a pow- shadow over the entire firm. between Japanese and European prac-
erful partnership of the Japanese That shadow extends to the claim tices, much less from a pay squabble and
carmaker, its big French shareholder, that corporate governance in Japan has dodgy corporate practices. It is that unless
Renault, and Japan’s Mitsubishi Motors, been improving substantially, following you own a company, you had better not
resembles a Kabuki play, with the Japa- reforms encouraged by Prime Minister think you can stay at the top of it forever.
nese powers-that-be asserting themselves Shinzo Abe’s government. And yet that Ghosn had remained chairman of
in the end. But Ghosn’s downfall is really failure may be overlooked thanks to a Nissan after he stood down as co-CEO
more like a classic Greek tragedy, with further feature of this tale, evident after last year, and he evidently believed he
contemporary German elements. This is a the arrest when the man who had been could still call the shots. Managing your
story of Hubris meeting Nemesis. And the Ghosn’s co-CEO, Hiroto Saikawa, brutally succession is a key task for any leader,
best parallel to Ghosn is German Chan- ejected him: Japanese managers have one that must not be left until it is too
cellor Angela Merkel. reasserted their traditional solidarity at late. He failed to do this, in part by failing
Even superstar managers or political the firm in an effort to shift the balance of actually to leave.
leaders risk disaster if they overestimate power in the Nissan-Renault-Mitsubishi That is also what, if you take her liter-
their power and outstay their wel- Motors alliance away from Renault and ally, Merkel is doing now. In October, she
come. That is what Merkel has done by back toward Nissan. announced that she would not stand in
remaining in office for 13 years, making This shift risks destabilising the alliance, December for re-election as leader of the
her the longest-serving chancellor since but Nissan managers appear to regard Christian Democratic Union, but claimed
Helmut Kohl held the post, from 1982 to that as preferable to being subsumed in she would stay on as Chancellor until
1998. a de facto merger – which is what the 2021. Yet as soon as her successor as party
Within recent memory, Merkel was stories emerging in Tokyo suggest Ghosn leader is chosen, the drums will begin
seen, rightly or wrongly, in heroic terms was plotting. Renault currently owns a beating for her immediate retirement –
for her role in stabilising the euro single 43% stake in Nissan, while Nissan holds especially if the victor turns out to be her
currency. But when she leaves office, 15% of Renault and 34% of Mitsubishi old rival, Friedrich Merz.
probably in the next few months, she will Motors. Crossholdings of that sort are She would do far better to pre-empt
cut a much-diminished, perhaps even common practice in Japanese business, that pressure by taking the initiative
humiliated figure. but full ownership may well have looked in announcing her own departure in
At least her fate looks to be better than like a more sustainable long-term model December. It is too late for her to alter
that of Ghosn, who was arrested in Tokyo to Ghosn and to Renault. her legacy, which will always be domi-
when he landed there in a private jet, and nated by her controversial decision in
now faces accusations that he misappro- 2015 to throw open Germany’s borders
priated company funds and paid himself to more than a million asylum-seekers
millions of dollars in hidden compensa- from Syria and other Middle Eastern
tion. Whatever facts eventually emerge,
the Brazilian-Lebanese-French executive’s
Ghosn’s arrest countries. Her last chance to influence
what historians write about her will be
career, which included 18 years running holds many to choose the moment and manner of her

lessons. One
Nissan and 13 years running Renault, has exit from the political stage.
come to an abrupt end. Ghosn, by contrast, can now affect his
Ghosn’s arrest holds many lessons. One
is the newly prominent role of whistle- is the newly legacy only through what his lawyers
can prove in whatever trial eventually
blowers in Japan’s corporate sector. As
in the 2011 accounting scandal involving
prominent role takes place. If only he had bowed out a
lot sooner, handing over the reins grace-
Olympus Corporation, Ghosn’s alleged
misconduct was revealed to the compa-
of whistle- fully and completely, his story would
have remained one of great achieve-
ny’s management by an inside source. blowers ment. And a lot less damage would
Another lesson, however, is that big
Japanese firms’ auditing and other corpo- in Japan’s have been done to the companies he
once served so well.
rate-governance safeguards remain weak.
If Ghosn truly has been hiding his real corporate sector
income from Nissan’s published accounts, Bill Emmott, a former editor-in-chief of The
there must have been collaborators in the Economist, is the author of ` The Fate of the
company’s finance department, and such West’.
practices ought to have been identified by Copyright: Project Syndicate, 2018.
auditors and investigated by independent

30 Nov 30 - Dec 06 2018


COMMENT
By Michael Mugabira
Behind new Sugar Act
Thank you parliament for ensuring that new law on sugar
shifts from ‘bitter’ Sugar Bill to new ‘Sweat’ Sugar Act

T
he Parliament of Uganda delivered ment representative voting rights and top-up payment i.e., at start of the year
a land mark victory on Nov.21 by an independent chairperson. The main farmers receive interim or advance pay-
passing the Sugar Act to streamline Plenary addressed the issue of power ment. R simply means quantity of sugar
the affairs of the sugar industry. imbalance by proposing that since gov- recovered per tonne of cane milled, i.e.,
The Sugar Bill 2016 had bitter clauses/areas ernment representatives tend to side simply this is a reflection of cane quality
and if they had been passed into law, the with powerful millers, then the growers which is a result of cane maturity. There-
Ugandan cane farmer would have been should be four (4) and millers three (3), fore, immature cane is discouraged as
rendered ‘a slave’ to the sugar barons. The and maintained that the Chairperson to recovery from it is low. For example,
contentious issues addressed are as follows: be appointed from the private sector and cane maturity of 18 months mainly gives
Sugar Board Vs Advisory Sugar non-aligned to the sugar industry. a recovery of 90-110 kg raw sugar per
Council and Representation: Lack of Zoning: the most contentious bitter pill tonne of cane compared to cane of 12
leadership was being demonstrated in the bill.  The entire plenary (save a few months which can give recovery of 60-70
by proposals for an Advisory Council ‘the prodigal sons/daughters’) quashed kg raw sugar per tonne cane crushed. D
instead of establishment of a Sugar Board zoning arguing that Uganda is a liber- = minimum percentage guiding negotia-
with full powers. The argument being alised economy, then why create monop- tions between both parties and for the
advanced was that a Sugar Board will be olies to enrich a few ‘sugar barons’ and case of Uganda this has been set to be 50
expensive and bureaucratic to manage. enslave our own people through discrim- percent of sugar sales and by-products.
As farmers before the Parliamentary inatory clauses such as zoning, which are Worldwide most farmers earn in range
Trade, Tourism & Industry Committee, unconstitutional. of 50 to above 70 percent of the sugar
we did object to the proposal of an Advi- Price Sharing Formulae: as with zoning, industry proceeds and by-products
sory Council as this would be subject to this issue had been misinterpreted by i.e., molasses, power generation etc.,
power abuse; that is, it could be ‘remote- Members of Parliament as price setting (see World Association of Beet & Cane
controlled’ by those intent to serve the and/or controls and therefore arguing Growers Association, Report 2015). 
interests of the sugar barons. for its deletion. As growers who were Therefore, the 40% which had been
Our argument was that putting a listening to the arguments from the gal- set in the bill and so far based on mill
structure that does not have full power, lery, our hearts started sinking because sugar alone (exclusive of sugarcane other
such as the proposed Advisory Council if removed then the Contracted growers products) was implying that Ugandan
was actually an expensive option when (receiving inputs) from milers would farmers would be earning  less than 40%
we consider the real issue that we are be at the mercy of the millers with con- of the sugarcane proceeds.
attempting to address, such as inequi- tinued exploitation since they have con- Therefore, on behalf of Uganda Sug-
table distribution of value within the tractual obligations. arcane Growers we wish to extend
industry. For clarity, internationally the sugar our magnanimous appreciation to the
The farmers argued that such a body sector is governed by price formulae Speaker of Parliament, Trade Com-
was unlikely to effectively represent that determine the sharing of proceeds mittee Members (endorsed majority
the interests of the Ugandan sugarcane between millers and growers as a result report), Hon. MPs in Plenary debate for
growers, which has the effect of perpetu- sales of sugar and its by-products in the re-shaping the ‘Bitter’ Sugar Bill 2016
ating the current inequitable distribution market for a whole year. The formula transiting to the ‘Sweat’ Sugar Act, hence
of sugarcane value in favour of millers, basically sets the minimum price for for the first time cane growers will test
while at the same time burdening the negotiations between the two parties. the sweetness of the sugar industry value
farmers with the huge cost and risk of In our Sugar Act, the formula for chain. Further, we are also humbled and
growing sugarcane for two years before sugarcane is prescribed as (Pc = Ps x yet exalted that H.E. Gen ‘Sabalwanyi’
marketing. R x D) where Pc = Average price of Y.K. Museveni, put the Country First and
We emphasised that this should be sugarcane paid to farmers per tonne, we do pray and implore him to assent
the real cost under consideration here, Ps = Average price of raw sugar per to The Sugar Bill to be The Sugar Act as
and not the cost of having an effective tonne (for simplicity this is sugar sold a Christmas gift for his voters 2018 as
body such as the Sugar Board. We also to market at factory gate prices based this period coincides with the famous
recommended an equal representation on supply and demand market forces, Christmas amended constitutional gift of
with millers on the board on condition for instance in the first quarter of year last year 2017.
that the position of chairperson will be a bag can be sold at Shs150,000, second
rotational between growers and millers. quarter can be Shs165,000, third quarter  DR. Michael MUGABIRA is the
Finally, government representatives will can be Shs185,000, and last quarter say Coordinator, Uganda Sugarcane Growers
have no voting rights. Shs160,000 at the end of year an average Associations’
The Trade Committee generally upheld price is computed to determine Ps
our position save maintaining govern- and, therefore, cane farmers receive a

Nov 30 - Dec 06 2018 31


COMMENT
By Joseph Were
Katuntu’s BoU snake-beating committee
The danger of hunters of personal gain forcing an indecisive
executive to dance to their tune in the legislative gallery

F
or some smart minds, the parlia- hide all documents and refuse to cooperate. parliament, it might become prudent for
ment probe into Bank of Uganda’s This is a political inquisition not a forensic another committee to handle future BoU
sale of seven commercial banks over investigation. And some people smiling issues. For expertise, the Committee on
23-years from 1993 is the peak of and acting untouchable today might be National Economy might be considered.
absurdity. That seeing the once invincible licking dry lips tomorrow. The debate on central bank independence
Governor Tumusiime Mutebile humbled Significantly, earlier in March 2017, might also reawaken. In the past, some
before the Parliamentary Committee on President Yoweri Museveni uncharacteristi- experts, including renowned banker and
Commissions, Statutory Authorities and cally handpicked Katuntu – an opposition financial sector scholar Ezra Suruma have
State Enterprises (COSASE) but mum- stalwart, to head a secretive, non-official argued that problems such as seen at BoU
bling “I don’t remember” to every query, general investigation into the affairs of today result from meddling by politicians
is a circus. They say it is absurdly similar BoU. This committee reportedly handed and wrong policy directives from the IMF/
to Justice James Ogoola’s 1999 Judicial Museveni its report in October. World Bank. Suruma’s position is imputed
Commission of Inquiry into the closure of So the executive, and Katuntu as its proxy, from his views in his 2014 book `Advancing
banks. Some even wish playwright Robert could be mistakenly floating on delusions the Ugandan Economy: A Personal
Serumaga was alive today to write a sequel of COSASE as another grand circus where Account’.
to his absurdist 1974 play `Majangwa’. It a hot potato could be parked until it cools Others, like Mutebile, have argued for
could depict the hopelessness of today. But down but a new game has emerged; of more power for BOU. In fact, the champion
all that is a mistake. using the committee to implicate, tarnish, of this camp, Prof. Phares Mutibwa, wrote
This COSASE is different and the many and embarrass job holders at BoU. a book; `Bank of Uganda (1966-2006); a His-
invisible forces around COSASE will be The mission is to render tenures unten- torical Perspective’ which was a centerpiece
revealed when it is done with hanging able, stymie some careers, and make some of activities when BoU marked 40 years.
BoU’s dirty laundry in parliament’s public money. It is a bid to create a new order via They pushed and got the Financial Institu-
square. For now, it is enough to note a grand ruse erected on fascinating subter- tions Act (2004) and later the FI (Amend-
Ogoola’s investigation was on whether the fuge. Seeing the executive is indecisive, the ments) Act of 2016.
banks were rightly closed. COSASE’s target hope is that the public’s hue and cry will Mutebile, an economic ultraliberal, even
is the individuals who closed them. It is a compel action. developed a mantra of commercial bank
subtle difference whose outcome might be Big business players, State House, the supervision. “Bank regulators cannot be a
as different as popping corn is from pop- Buganda kingdom, the Catholic Church, substitute for bad bank managers,” he often
ping dynamite. and the ever lurking officials of the World pipes.
Secondly, although COSASE Chairman Bank/IMF have a stake. It gets murkier But many note that by the time he was
Abdu Katuntu likes to affectedly scratch his when opposition stalwart Nandala Mafabi appointed in 2001, four of the banks under
goatee and invoke a supercilious awareness and NRM’s Raphael Magyezi of Remove scrutiny today had been `neatly’ sold or
of his responsibility, it is not clear to what Age-limit Bill fame bat on the same side. closed. So, for years, Mutebile opined that
extent he is in charge of this mission. That The probe is a consequence of the special “in many of the failed banks, a dominant
depends on how entrenched he is in the audit into BoU’s closure of the banks that shareholder or group of shareholders
ranks of today’s puppet masters. It could COSASE ordered the AG to undertake in was able to exert undue influence over
also explain why some members of the a letter dated November 28, 2017. But it the management of the bank which
30-strong COSASE, like Medard Ssegona, is Nandala Mafabi who in July 2017 peti- resulted in abuses such as pervasive
Mbabali Muyanja,Muhanga Margaret, tioned COSASE to launch it over alleged insider lending.
Michael Tusiime, and others who are usu- negligence and unethical conduct, collusion, And he even devised a four-point survival
ally either quite informed or voluble are and corruption by individuals. Mafabi’s formula for commercial banks; including:
quiet. move appeared well-orchestrated as it Appointing skilled and competent board
Katuntu is in this position because he pro- was seconded by Magyezi from across of directors, ensuring independence of
motes himself as what is technically called a the aisle. Deputy Speaker Jacob Oulanyah management, managing risk, and ensuring
“sound” legislator; someone the public can appeared to halt it on August 1, 2017 fol- independent audits. The question is why
trust to effectively dig into any dirty pile, lowing protests from MMAKS Advocates, the three bank closures under his tenure
and the government trusts to have enough the sharp-suit lawyers for BoU from the have caused such a stench. Could there be
sense not to expose too much stench. But is powerful Buganda kingdom. The Solicitor forces that Mutebile cannot handle beyond
he a coopted outsider or a complicit insider? General Francis Atoke also weighed in on his theories?
Katuntu’s mission is clear; pin the BoU the blockers side. But the AG resurrected Anyway, when the late Idi Amin’s
officials on the missing inventories of the it in an April 23, 2018 letter to Speaker of Uganda was at its bleakest, Alex Mukulu
assets and liabilities of the banks, how they Parliament Rebecca Kadaga and on May started his Africa Social and International
mismanaged them and unscrupulously 10, 2018 got the go ahead. This ping pong Theatre of the Absurd. Today he is quiet. In
transferred some of them. The mission signals the high states game with COSASE the ensuing silence, smart minds might con-
mirrors the seven TORs COSASE gave the as a tiny part. clude that although the BoU probe appears
Auditor General John Muwanga. It, there- Finally, heads will roll when COSASE pointless, it pointedly mirrors many current
fore, does not matter whether BoU officials is over. But does jail await some? And for political contradictions.

32 Nov 30 - Dec 06 2018


By Wei-Chiao Huang & Jonathan
Lovell

Is it possible to eradicate

I
malaria?
t is a question with
which many researchers
have grappled, and
many ideas have been
proposed. The reason
malaria has garnered so
much attention is that
it is one of the deadliest
diseases, infecting 200
million people and killing
more than 500,000 annually,
with infants in Africa
suffering the majority of
fatalities.
The disease is a huge
burden for humanity,
damaging economies
and social development.
According to the Centers
for Disease Control and
Prevention, malaria
treatments cost Africa
nearly US$12 billion per
year. Reports have shown
that nearly 1,700 cases are

Eradicating malaria
diagnosed annually in the
United States, usually in
people who have recently
traveled to regions of
Asia and Africa where the
disease is endemic. Scientist develop vaccine technique that could
For some decades,
researchers have being
working on a novel idea
block mosquitoes from transmitting disease
called a “transmission-
blocking vaccine.” This its development. This parasites. When another of the invader so that it can
vaccine is different from prevents the mosquito from mosquito feeds on the prepare antibodies that will
traditional vaccines that transmitting the disease to infected individual, it tag the microbe and label it
protect the recipient from another person. slurps up the malaria for destruction.
getting the disease. Here, The concept is bold but parasite and the antibody. To develop a potent
the vaccine blocks the has not yet been tested in The antibody prevents the vaccine that induces a
transmission of the parasite large-scale trials. immature parasite from strong antibody response,
that causes malaria from How the transmission developing, which means the choice of protein
an infected human host to blocking vaccine works. that this mosquito is unable from the disease-causing
mosquitoes. The cycle of disease begins to transmit the disease. organism is critical.
When a human receives when a mosquito carrying Wei-Chiao Huang, CC Scientists home in on
such a vaccine, specific the malaria parasite BY-SA particular proteins that the
antibodies are generated in bites the first individual, microbes produce to spike
the blood. When a mosquito infecting him with the Liposomes: A vaccine the vaccine. For our work,
bites and ingests the blood disease. The parasite then carrier we chose a well-studied
of an infected human, replicates in the liver and protein called Pfs25, which
both the parasite and spreads into the blood. A vaccine works by is found on the surface of
antibody are taken up into When the vaccine is injected showing the body a piece the malaria parasite.
the mosquito’s stomach. into the infected person, of the disease-causing The parasite displays
Once inside the mosquito, it stimulates the body to microbe. The part itself this protein on its surface
the antibody attaches to produce antibodies that does not cause disease but when it is developing
the parasite and inhibits then attach to the new gives the body a preview in the midgut of the

Nov 30 - Dec 06 2018 33


health

mosquito. Pfs25 as target protein for the animals continued to produce


transmission-blocking vaccine has antibodies for more than 250 days.
been clinically tested in Phase I trials; These antibodies produced throughout
however, progress has been limited. this period prevented the development
That is because, by itself, the Pfs25 of the malaria parasite throughout this
protein triggers only weak production period.
of specific antibodies.
In other approaches, researchers Moving forward
have taken steps to genetically Another valuable feature of the
engineer a modified and more cobalt liposome is that we can attach
potent Pfs25 for other clinical trials. a variety of proteins from different
In general, such approaches are stages of parasite development
promising, but there is some potential to create a particle that triggers
risk that the target protein does not the production of many types of
exactly mimic the natural protein on Eliminating the spread of malaria antibodies – each targeting a unique
the parasite. part of the parasite. Our results
We believe that a new type of The Lovell lab developed a cobalt- showed that five distinct malaria
vaccine that incorporates liposomes laced liposome-based vaccine that proteins could be attached to the
may be a promising candidate for displays the parasite proteins on its liposome surface.
a transmission-blocking vaccine surface. The antibodies from mice
adjuvant. An adjuvant is another Making a liposome vaccine: The immunised with liposomes carrying
vaccine component that potentiates Pfs25 protein is tethered to a histidine multiple proteins recognised many
the immune response. Liposomes tag (green) and mixed together with a stages of parasite development. The
are hollow spheres made from fat cobalt-containing liposome. The two results seem promising. In the future
molecules. parts combine to make a vaccine that we plan to explore the safety of this
The advantage of the liposomes, is injected into the mouse. The insert vaccine and whether it will work for
compared to just the Pfs25 protein shows how the histidine tail interacts different species of malaria.
alone, is that they can help deliver with the liposome to keep the proteins Our next step is to test our vaccine
more parasite protein to immune firmly attached. CC BY-SA in other animals. Eventually the aim is
cells. These cells uptake the liposomal Making this vaccine is simple. Once to translate this technology to human
vaccines and trigger the production of we have the cobalt liposomes and clinical trials and assess whether
more antibodies which then target the the Pfs25-histidine molecules, we the liposome technology and the
parasite for destruction and block the simply mix these parts together, and transmission blocking vaccine strategy
disease. the structures form spontaneously. is an effective tool for preventing the
Jonathan Lovell’s team has When this Pfs25 liposome is injected spread of malaria.
developed a liposome as a vaccine into mice, it triggers high quantities of
to fight against malaria. In 2015, Dr. antibodies. Wei-Chiao Huang is a Ph.D. Candidate
Lovell’s team figured out how to The antibodies in the mice blocked in the Biomedical Engineering
anchor proteins to the liposome by development of parasites in the gut of Department, University at Buffalo, The
attaching them to a string of amino the mosquito. So we expect that when State University of New York & Jonathan
acids called a histidine tag. The tag an uninfected mosquito bites a person Lovell is Associate Professor of Biomedical
works like an anchor which attaches infected with the malaria parasite, Engineering, University at Buffalo, The
the protein to the liposome. the blood it sucks up will carry the State University of New York
Adding a cobalt-containing parasite and the human antibodies
molecule with a structure similar that will prevent the parasite from
to vitamin B12 made the liposome- multiplying in the insect’s gut.
protein structure stable. When we tested this vaccine in mice,

34 Nov 30 - Dec 06 2018


ART | BOOKS | SOCIETY | TRAVEL | CULTURE

Value of our old buildings


Exhibit rediscovers modernistic

T
By Dominic Muwanguzi ments on these structures. This
has inspired the trend of demol-
he conversation on
the preservation architecture in five African cities ishing them to pave way for
“better constructions” around
of old building in the city.
Kampala has been Such hasty developments;
recently renewed in outside world. Buildings like Uganda House
with no reference to already
an itinerary photog- In light of this grand oppor- add character to the urban land-
existing architecture, risks
raphy exhibition titled `Africa tunity, magnificent buildings scape making it attractive and
to erode the political –social
Modernism’ showing at the like Kenyatta Conference Cen- unique. The buildings are also
context that influenced such
Makerere Art gallery in Kam- tre (Nairobi), Coffee Marketing a splendid sight with towering
constructions. In fact, many
pala, the capital of Uganda. Board Complex (Kampala), the apartments and designs that are
building constructed today,
The exhibition documents Stadium at Kwame Nkrumah symbolic of cultures and tradi-
lack cultural- social significance
over 80 buildings in five cit- University of Science and Tech- tions of a specific locale. For
to the locale.
ies on the African continent nology (Kumasi) sprung up example the Uganda National
So this exhibit plays a crucial
namely Kumasi (Ghana), Nai- to mirror the forward looking Theatre building was shaped
role in rediscovering some of
robi (Kenya), Abidjan (Côte spirit of the continent and the like a bow to reflect the socio-
the best architecture on the Afri-
d’Ivoire), Lusaka (Zambia), and heroism that accompanied it. cultural, religious, political
can continent that needs to be
Dakar (Senegal) built mainly Incidentally, most structures and economic significance of
preserved against the urgency
during the post – colonial were designed by colonial Uganda as a country. Similar
to court new trends in construc-
period. However, an additional firms. In Kampala, it was the significance is mirrored in the
tions that come with globalisa-
chapter documenting Kampala British firm Peatfield & Bod- architecture of national confer-
tion. It recognises that pressure
architecture inspired during gener that designed most of the ence centres, banks, and legisla-
to be part of a wider African
that period is included - to monumental building gracing tive buildings.
identity. Without preserving
create a local narrative for the the city landscape. This was an Also, the fact that most of the
them, certain histories and heri-
audience. ironical aspect that somehow information on these old build-
tage of many African societies
The modern architecture reflected the dilemma of the ings, in the Uganda context, is
will be lost.
showcased here captures new independent states. Natu- stored in the British Archives
The show is curated by
the vibrancy of the African rally, the design and construc- in the UK poses a serious prob-
German architect and author
economies at the time and their tion of these colossal buildings lem in terms of research on
Manuel Herz. The exhibition
optimism about the future. It would have been undertaken them. Who was commissioning
in Kampala is supported by
should be noted that this period by the locals, perhaps only these buildings? Who were the
the Goethe Zentrum Kampala/
(1950s-1970s) was not only a supervised by the west. architects? Who governed their
UGCS and will remain open to
time of economic boom for Afri- Yet this predicament does not design choice? Without quick
the public until 18 January 2019
can countries, but a moment to compromise on the aesthetics and easy answers, current gov-
at the Makerere Art Gallery.
flaunt their new national iden- of this modern architecture nor ernments are ill- equipped to
Images are courtesy of Goethe
tity as independent states to the its functionality to the public. make further possible develop-
Zentrum Kampala.

Nov 30 - Dec 06 2018 35


Cheese maker plays music to Woman `vampire’
his cheese for better taste! jailed
Beat Wampfler , a cheese genres. Some cheeses are aging
maker from the Emmental to techno beats, others to ambi-
region of Switzerland has been ent music, or classic pieces
experimenting with various like Mozart’s Magic Flute. The
musical genres to see if they effects of rock and hip-hop on
can make his cheese taste bet- the taste of cheese are also being
You can now pay to ter. While his idea may sound a
bit crazy, he actually managed
tested, with some wheels of
cheese “listening” to Led Zep-
attend strangers’ to get some scientists from the
University of the Arts in Bern
pelin or A Tribe Called Quest.
“Will the cheese taste better?
weddings in India involved in his experiments It’s hard to say,” Wampfler said,
after they learned that there is a adding that if it turns out that a
Paying hundreds of dollars A 22-year-old female fan of
field called sonochemistry that certain music genre can make
to attend the wedding of two the hit TV show “The Vampire
looks at the impact of sound his Emmental taste better he
total strangers in a foreign Diaries” who considered herself
on solid bodies and chemi- hopes it will be hip-hop.
country may seem strange the real-life vampire heroine
cal reactions. To test out his A jury of expert cheese tasters
to some, but according to Elena Gilbert was recently sen-
theory, Beat Wampfler has been will assess the effect of the vari-
JoinMyWedding, a company tenced to two and a half years in
installing small speakers under ous musical genres on Wamp-
specializing in wedding prison after stabbing a man that
the large wheels of Emmental fler’s wheels of Emmental
tourism, it’s “the ultimate she allegedly considered a were-
cheese and split them into cheese, next year, on March 15.
cultural immersion” for wolf. The bizarre attack occurred
several groups, by musical
tourists looking to experience in the Russian city of Novosi-
as many elements of Indian birsk, back in February. Ekateri-
culture in the shortest time na Tirskaya, met her unnamed
possible. Clients get to victim on social media, and, after
put on traditional Indian hitting it off online, the two went
clothing, taste exotic food, for a date and ended up spend-
ing the night together. But things
witness and take part in
got weird the following morn-
beautiful wedding customs,
ing, as the man later told police
and soak up the unique
that the woman he woke up
atmosphere. As for the
and out of the blue told him that
couples getting married, they
she was a vampire and wanted
get to share the happiest day blood. She grabbed a knife and
of their lives not just with stabbed him in the chest with it.
family and friends, “but with He run out of his apartment and
the world” and make some was rescued by neighbors. A
extra money in the process. psychiatric evaluation concluded
Tourists pay $150 (Approx. that Ekaterina Tirskaya was of
Shs550,000) for one day’s sound mind, and the supernatu-
attendance, or $250 (Approx. ral fan was convicted to two and
Shs930,000) for two days. a half years in prison.

This heelless running shoe allegedly prevents injuries


Looking at the new running shoes not require the support of the heel,
unveiled by Spanish start-up FBR but instead relied on the Achilles
you would be forgiven for thinking tendon, plantar arch, soleus and calf
it incomplete, but the missing heel in muscle. A few months later, Beneyto
the sole is actually by design. Athletic met Javier Gámez, a renowned doctor
trainer Franc Beneyto came up with in biomechanics who recognised the
the idea for a heelless running shoe potential of his heelless running shoe
five years ago, after reading the book concept and Beneyto founded Faster
`Running with the Kenyans’, by & Better Runners (FBR), the company
Adharanand Finn, a journalist and able to run more, faster and get injured that produces the heelless running
amateur runner who lived for a few less frequently than others. In the book, shoe. A pair of FBR costs 139 euros
months in Kenya with athletes and Finn wrote that Kenyans had refined (Approx, Shs600,000).
coaches to investigate why they were a natural running technique that did

36 Nov 30 - Dec 06 2018


2019 Range Rover
By Agencies

T
he Range Rover Evoque pretty
much invented the idea of a style-led

Evoque revealed
baby crossover, back in 2012. Plenty
of critics said it seemed a bit frivo-
lous, but three-quarters of a million buyers
around the world prove they were wrong.
It’s been a massive success, selling three-
quarters of a million copies. Driveline technology hasn’t been over- aim was to improve boot space. It’s now 591
This new one launches in 2019. It’s got looked. Like rivals, the engines are 2.0-litre litres. The box under the centre armrest can
some clever technologies to make sure four-cylinder units, but there’s a mild take big bottles or tablets.
there’s substance behind the style. Its sur- hybrid system attached to all the AWD ver- Also the fuel tank is bigger, at 65/67 litres
prisingly serious off-road chops are given sions. This is a 48-volt motor-generator that for diesel/petrol, and the AdBlue tank rises
another leg-up. But it’s also got some canny harvests energy during braking and feeds it to 17.2 litres, cutting the need to stop for that
gadgetry and furnishings to serve the real back in as a helping hand of torque in gentle emissions fluid.
majority of its buyers: smart city couples. slow acceleration. It saves about 6.0 per cent By the way, this new platform means the
It’s been given an-all-new platform with fuel overall, the maker claims, and helps Evoque now has few under-skin similarities
amazingly little carried-over hardware. That especially in town. On the highway, thirst is with the Jaguar E-Pace or Land Rover
should make it stronger, safer, quieter and trimmed back because of a lower aero drag. Discovery Sport, though obviously when
better-driving than before, as well as slightly The longer wheelbase means a little more those cars get replaced they’ll move onto the
roomier – all within the same city-friendly rear legroom than before, so it feels just new hardware.
overall length and width. about adult-sized. But Evoque owners sel-
dom carry people in the back, so the main Source: Internet

The Largest 7 Seater 4x4 In Uganda


Only available at Spear Motors Limited

Mercedes Benz GLS


0783 614601/ 0753 614601 sales@spearmotors.co.ug www.spearmotors.co.ug
Nov 30 - Dec 06 2018 37
Profile
Ramathan Ggoobi on `simplicity
as the ultimate sophistication’
By Agnes E Nantaba complaining about the teaching load, he is school environment as the family spent

R
happily asking for more although he con- many years residing at the school campus.
amathan Ggoobi is Policy Ana- fesses that his only challenge comes at the He also recalls visiting some relatives in
lyst, and political economist who time of examining and marking thousands Kampala during holidays and getting
spearheaded the arm ‘economics of scripts. actively involved in some work to earn
that works in Uganda. He lecturers “Many people have tried to get me out some money.
economics at Makerere University Business of teaching; including the government but Ggoobi has a partner; Stella Nakamya,
School (MUBS) and has co-authored several I maintain my stand,” Ggoobi says, “I want with whom they have two children.
studies on Uganda’s economy. Aside from to keep changing the mindset of young
living his career dream, he is also passionate people which contributes to the betterment
about imparting and sharing knowledge of the country.”
with others; especially young people. He Ggoobi is pursuing his PhD at Walden
set off to change the face of economics in University and works on several projects.
the country from a complicated and math- But he always avails time for teaching.
ematised discipline to make it user friendly. He says his passion for economics was
That was more than ten years as an under- inspired by former Bank of Uganda Gov-
graduate student of economics at Makerere ernor and proprietor of defunct Greenland
University. Although he had chosen to be Bank, Sulaiman Kiggundu who visited his
an economist as early as senior three, Ggoo- secondary school a couple of times during
bi was tasked with a tough course which he fundraising drives and other ceremonies.
says appeared like rocket science. “I would listen to some of his stories of
“The way it is taught makes it appear how he had travelled the world and from
like rocket science yet it deals with real life then, I set out to be like him as an econo-
and everybody would be interested,” says mist,” Ggoobi said.
Ggoobi. Ggoobi even volunteered to craft Kig-
“I had a critical mind and vowed that if I gundu’s image as an art piece.
ever become a teacher, I would change the Ggoobi possibly picked his teaching traits
way it is taught”. from his parents, both teachers. Two of his
Upon graduation in 2003, Ggoobi was other siblings are also lecturers.
among the best students of economics and Ggoobi was born in Butambala Kitagobwa
was recalled to offer lecturing services at Ngando to teaching parents although his
Makerere University. But before the process father crossed over to civil service after
of induction would be completed, Ggoobi some time of teaching. His mother, Lucy
was contacted to offer the same services at Nakibuule taught until retire-
Kampala International University (KIU). ment. He studied at
A month later, Kampala University was in Kitagobwa UMEA
need of his services which he also offered to primary and sec-
deliver. Ggoobi says that he juggled both to ondary school.
make ends meet until he was contacted by Most of his child-
MUBS. hood memo-
This would finally be his best and for the ries revolve
last ten years, he has taught economics at around the
the institution.
“I must confess that it has been a very
beautiful journey,” he says, “Most of my
students have testified that my way of
teaching helped them to love economics.”
Ggoobi also got involved in the global
debate of why economics teaches more
neo-liberalism. He says that he drew his
inspiration from Prof. Patrick Kabunakuki
who advised him to pursue economics that
works.
As many teachers continue to abandon
the profession in pursuit of better pay-
ing jobs, Ggoobi is not about to drop his
passion. As some of his colleagues are

38 Nov 30 - Dec 06 2018


Q&A

Ramathan Ggoobi’s Liteside


Any three things that we Which living person do this life are those who If you could change one

I
don’t know about you? you most admire? have brought in something thing about yourself, what
am a simple guy; I I admire economists positively new in the way would it be?
believe that simplicity but one who stands out people view life. Nothing.
is the ultimate is Amartya Kumar Sen.
sophistication although He is a professor of On what occasion do you Where would you most
some people take me to be economics and is like the lie? like to live?
unserious. I am so obsessed grandfather of economics Telling lies is inevitable;
with happiness. I love that works. He introduced especially if it’s going to What is your most
people a lot which explains the aspect of development keep relationships good treasured possession?
why I share a lot . as freedom and he helped and going. Being able to impact lives
so much to switch the of young people
What is your idea of mindset of economists What do you most dislike
perfect happiness? who used to think that about your appearance? What do you regard as the
Freedom of choice, self economic development is God was very generous in lowest depth of misery?
esteem, and having a stable about countries getting my creation. Losing a person who is
income infrastructure. Like him, I so close to you and it might
believe that development Which living person do not be a family member.
What is the trait you most is about people and in that you most despise? For instance, I lost a friend
deplore in yourself? education and health are I despise politicians who in Gen. Aronda Nyakairima
Sometimes I am over very important. change goal posts. (RIP).
generous; my people have
actually told me to lessen. What is your greatest What is the quality you What is your favorite
extravagance? most like in a woman? occupation?
What is the trait you most I buy books a lot and Simplicity, happiness, Being an economist
deplore in others? sometimes I buy those I will and beauty.
Loose talk; there are never read. What do you most value in
people who can’t observe What is the quality you your friends?
something and keep it to What is the greatest thing most like in a man? Availability and
themselves. There are also you have ever done? Ability to give people dependability.
those who are not objective Turning my life into what their freedom and respect
in their thinking and it is now. I am a self-made their emotions. Who are your favourite
conversation. I don’t like person who had to trade writers?
people who use their own certain things to get where I What or who is the greatest William Russell Easterly
biases to judge others. am. I traded my teenage life love of your life? is a man who brought
for what I am today. My mother Lucy political economy to
Nakibuule comes up in another level. He has
What is your current state number one position. My written a number of books
of mind? partner Stella Nakamya that point out a correlation
I am a happy person. is also a very special between politics and
person. My boss, Patrick economics.
What do you consider the Kabunakuki introduced me
most overrated virtue? to the world where I am Who is your hero of
The institution of now. fiction?
marriage and weddings; I am a realist.
some people think that their When and where were you
lives will stop if they don’t happiest? What is your greatest
get married to a certain February 2013 when I had regret?
person or in a certain way. my first son. I was also very I don’t regret because I
We also overrate religious happy graduating with my love what I do. Life is not
practices. first degree in 2003. yet perfect but is near there.

What does being powerful Which talent would you How would you like to
mean to you? most like to have? die?
Being powerful means I love singing and it is I can’t think about death.
being knowledgeable something I picked from
buttressed with money. The my mother but have a bad What is your motto?
most powerful people who voice. Simplicity is the ultimate
are believed to have walked sophistication.

Nov 30 - Dec 06 2018 39


Global comment
By Tony Blair
Uniting Africa for power
Integration is essential to scale and connect markets
where lack of electricity is holding back progress

A
frican countries are increasingly these costly electricity imbalances would But to realise the potential of power
coming together. A landmark be through a common energy market. trading, four conditions must be met.
free-trade agreement was Much like the European Union’s internal For starters, the politics of trying to align
concluded earlier this year. East market for electricity, power trading national policies with a regional vision
Africa has made great progress on free would ideally extend across Africa and must change. Those of us with a long
movement of people. And a commitment form part of the continued evolution history in the EU will understand the
to a single market for air travel has been of the African Union, which Rwandan difficulties of this better than most, and
revived, potentially connecting countries President Paul Kagame is so admirably for some West African countries, rolling
better than ever before. pushing forward. But high-volume back costly and inefficient but politically
Each step toward greater cooperation power trading from Ethiopia to Lesotho popular subsidies will be difficult. The
and unity on the continent is, on its is unlikely in the foreseeable future, and gains from trade would offset the effects,
own, an important one. Together they a more realistic path forward would be but this is likely to be a hard sell for
show how a new generation of African at the sub-regional level. politicians to make to their publics.
leaders understand that power in the One such opportunity is through the Second, infrastructure needs to be
twenty-first century reflects strength in West Africa Power Pool. Little more developed to connect national markets.
numbers. than half of the region’s population has International donors already are
But, for Africa, power requires power access to electricity, and only around 3% supporting much of this work. It is
in another sense: a lack of electricity of power generation currently crosses crucial to complete it, so that isolated
continues to hold back the continent’s borders (based on current capacity grids are integrated into a unique
progress. And here, too, integration is levels). With an integrated market, regional market.
essential to scale and connect markets, however, power demand could be Third, gas must become increasingly
reduce consumer costs, and drive met as countries such as Ghana, Côte available. Nigeria is the most likely
growth. d’Ivoire, and Guinea produce surpluses, source; another is imports of inexpensive
Despite advances in recent years, while others such as Burkina Faso and Liquefied Natural Gas. Without the
more than 600 million Africans still lack Mali are in deficit and reliant on costly development of reserves, countries
access to electricity. Solar technology liquid fuels. will need to revert to liquid fuels, at
has improved, and its declining cost has Such a sub-regional market would higher cost and larger carbon dioxide
made it a viable option. Rising inflows of yield significant benefits not only for emissions.
private capital have been accompanied families, but also for governments Lastly, regulatory harmonisation is
by large-scale national energy-sector and investors. More people would be essential to ensure the right enabling
reforms, which should help increase the connected, exporting countries could environment. But so, too, is support for
availability of electricity. But pushing generate more revenue, and imports first-time, specific transactions – such
down the price of power and making it would become less expensive, more as that along Africa’s west coast all the
available across growing cities and vast reliable, and cleaner. According to way from Côte d’Ivoire to Mauritania –
territories remains a daunting, and yet modeling by the Africa Governance which can help countries to overcome
central, task. Initiative (part of the Tony Blair obstacles and open the door to future,
All of the African leaders with whom Institute for Global Change) and the more expansive power trading.
I speak tell me that making electricity U.S. government’s Power Africa, Developing this internal market is
affordable is a top-priority issue, and an integrated energy market would key to West Africa’s energy future.
most have set ambitious targets for save the region $32 billion in energy Over the next decade, it could have a
power generation and transmission. costs in the next decade. With better major impact on the lives of more than
But achieving these targets requires infrastructure and increased supply, this 300 million people. It would also be
adopting a mix of technologies, which is figure could be many times more. a significant step in Africa’s push for
hard enough in the best circumstances, Developing a sub-regional market greater unity, more self-reliance, and
but even more so when countries try to would also spur economic growth, an economy driven more by trade and
go it alone. create jobs, and boost income for less by aid. And it would reinforce the
The fact is that resources are not evenly millions of people. Private capital progress African leaders are making
distributed among countries. Some would be attracted to new opportunities toward projecting strategic power in the
have gas, others hydrological resources. as national markets open up for world today.
Some have no particular resources and economies of scale in the production
build thermal power plants or import and transmission of electricity. From an Tony Blair, Prime Minister of the United
expensive liquid fuels to meet their environmental perspective, an integrated Kingdom from 1997 to 2007, is Chairman of
needs. Added to this are planning issues, market would save around 23 million the Africa Governance Initiative.
which usually go one of two ways: either tons of fuel oil – roughly the equivalent
too much or too little supply. of the United Kingdom’s annual fuel Copyright: Project Syndicate, 2018.
The most efficient way to overcome consumption by diesel vehicles.

40 Nov 30 - Dec 06 2018


LIVE AT 9
We tell the story beyond the story.

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