News analysis Health Business

NRM Day: Testing NRM’s big Scientists struggle Uganda’s bank for lebrating
the promises numbers bad? to find new drugs? cooperatives a reality? Ce

Issue No. 505 Jan 26 - Feb 01, 2018 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8
Years

Should government
takeover UMEME job?
Karuma, Isimba power raises
new questions

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 KAMPALA PARENTS’ SCHOOL
‘WE STRUGGLE FOR THE FUTURE’

performance. You made us proud! We wish you success in your future endeavours.
OUT OF 257 PUPILS, 197 (76.9%) ATTAINED 1ST DIVISION
BEST PERFORMING PUPILS

AINOMUGISHA STELLA BAGIIRE PAUL TYLER KAFUMBE SHAHAM OCAYA NYEKO RWAKIBALE CALVIN SONGA JOEL MATTHEW
(4.AGG) (4.AGG) IMRAN (4.AGG) EMMANUEL (4.AGG) ISAIAH (4.AGG) (4.AGG)

MUGISHA ANTHONY MUGUME JEREMIAH MUTYABA TWAHA NDYANABO RYAN NYIRANZIZA ANGEL AHURIRA MATTHEW KORUTARO JOSHUA KYANKYA JOSEPH MPINDI HASHIM MUGASHA BEN Jr.
(5.AGG) (5.AGG) (5.AGG) (5.AGG) (5.AGG) (5.AGG) (5.AGG) (5.AGG) (5.AGG) (5.AGG)

KARUHURA ALBERT KIGOZI BEVERLY MATOVU JOSHUA MUTEBI RIYADH NALULE EMILY OKETCH PETER SEAN SSERWADDA BENJAMIN ACEN KELLY INNOCENT AHABWEMBABAZIZE ANZOA PRUNA
(6.AGG) (6.AGG) MWESIGWA (6.AGG) (6.AGG) AKANKUNDA (6.AGG) (6.AGG) WILBER (6.AGG) (6.AGG) JOSEPH (6.AGG) (6.AGG)

ARINAITWE MARVIN D. EPUDU MATTHEW KALULE EUGENE

(6.AGG) JORDAN (6.AGG) (6.AGG)

DIVISION ANALYSIS
AGGREGATE ANALYSIS DIVISION NO. OF PUPILS PERCENTAGES
AGGREGATES 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TOTAL 1 197 76.9%
PUPILS 06 10 13 19 34 30 35 28 23 21 10 12 06 04 01 01 04 257 2 58 22.6%

ADMISSIONS ARE ONGOING, APPLY NOW.

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Kampala Parents’ School @Kampalaparentsschool www.kampalaparents.com

INBOX

Issue No. 505 Jan 26 - Feb 01, 2018

The Week The Last Word Analysis Business Arts &

Culture
4|Judges Reconsidering 14|NRM’s big 21|Will Uganda’s
conference focus numbers: bank for
on extending governance in Ruling party’s cooperatives be a
43|Big is big:
Art Safari
justice to the Africa: unrivalled growth reality? :
finally comes to
disadvantaged Why our scrutinized as it Cooperative
Kampala
marks 32 years in banks worldwide
obsession power were financed
4|Under age
illicit alcohol with copying by cooperatives
consumption and pasting societies
increasing, study western 16|Auditor
finds General lists 43|5 coolest
institutions weak government
24|Failing access gadgets for
causes more departments:
to agriculture your ride in
funding 2018
4|Kitata, Boda harm than Political will to do
boda 2010 leader
arrested
good things is zero, says
civil society

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

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
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2 Jan 26 - Feb 01, 2018

 Offline

Makerere University
graduates jubilating
during their 68th
graduation ceremony
on Jan. 18. Fourteen
thousand eight five
students graduated this
year.   INDEPENDENT/
JIMMY SIYA.
“I thank God I did not become FDC
president again because FDC is full
of contradictions”Former FDC president
Mugisha Muntu

President Museveni
poses for a photo with
some of the prison
commissioned offers after
over 900 Prisons Officers
comprising 706 Warders
and 213 Wardresses
were commissioned on
Jan 18 at Luzira prisons. “Boda Boda 2010 fought all attempts at
He warned the graduates
against irresponsible
regulating boda bodas in Kampala. Even
lifestyles saying they must when we tried to put up stages for boda
avoid anything that would bodas, they fought the ideas”Minister for
put their lives in danger. On Kampala Beti Kamya on Boda Boda 2010
the right is the Commission
General of Prisons,
Johnson Byabashaija

French Ambassador
Stéphanie Rivoal, (3L)
back row with the German
Ambassador to Uganda
Albrecht Conze, (3R) pose
with recipients of the
Franco-German peace and
reconciliation award at the
55th anniversary of the “It is time for our people to stand
Franco-German friendship contesting for all political and
treaty on Jan 22. The leadership positions at all levels in the
awardees are offering free
legal aid services to victims
country” Kabaka Ronald Mutebi urging
of land grabbing in Karamoja Baganda to join politics in bigger numbers
under the legal aid project
of the Uganda Law society. 
INDEPENDENT/JIMMY SIYA

Schools likely to be Leaders in Congolese refugees in

48 closed by KCCA
in February over 22,605 government being
probed by IGG over 243,567 Uganda after a surge in
the last two months
declining standards their wealth

Jan 26 - Feb 01, 2018 3

week

Judges focus on justice Underage illicit alcohol consumption increasing, study finds
for the disadvantaged 50.8% of the 600 respon-
dents in a study conducted
by a Health Communication
Judges on independence Organisation – Straight Talk
Jan.22 embarked of the judiciary Foundation Uganda agreed
on a week-long and the fact that to have consumed illicit
conference to brain the entity is not alcohol, 17% of which were
storm on how to self- accounting. under the age of 18 years.
improve Uganda’s Recently the Underage consumption
justice system. lawyers umbrella was higher among males at
Held at Speke – Uganda Law 25% than among females
Resort Munyonyo, Society petitioned at 9%. The study dubbed,
Paul Gadenya the court over ‘licit Alcohol Consumption,
registrar of courts failure to pass largest proportion of 42.9% Director Striaght Talk Foun-
a Community’s Perspec-
said that the gist the judiciary consumes illicit alcohol com- dation said they wanted
tive’ was conducted in four
of the conference administration bill posed of locally produced to understand facilitating
districts – Kampala, Kabale,
was to look at and government waragi – Kasese, Enguli and factors and therefore found
Soroti and Gulu
ways how justice actions that Lira-lira at 18.8% and Local that illicit alcohol is cheap
Speaking at a Science
can extended to impend the brew – Malwa and Ajono at and can be easily got a thing
Café Organised by the
disadvantaged judiciary from 24.1%. He said the findings that allows for consump-
Health Journalists Network
Ugandans who attaining the show that the majority of tion of enormous litres.
in Uganda (HEJNU) on
cannot afford self -accounting underage consumers live She called for coming up
Jan.17, Richard Imakit a
for legal fees. status. The lawyers with an alcohol consumer with helpful strategies just
researcher said they found
Held under maintained that where 51.9% were mothers like the country did earlier
a substantial 75.5% of cur-
the theme, an government has whereas 50.7% were fathers. when handling the AIDs
rent drinkers are under 18
inclusive judiciary continuously Susan Ajok, the Executive epidemic.
years of age whereby the
for sustainable violated these
development, provisions as the
Gadenya said
before the
legislature and
the executive
Cancer machine resumes after two years
conference that have failed to Patients requiring radiotherapy can now of getting the cobalt machine because there
they would take action or get treatment at the Uganda Cancer Institute are 28 countries in Africa that don’t have the
explore informal enact appropriate after the machine that had broken down in machine and therefore their people can’t get
justice mechanisms laws that would 2016 was officially replaced on Jan.19. The such treatment. However, when the only
in addition to enable the arm new machine is set to handle 80 patients a cobalt machine that had been procured 20
exploring how of government day. Speaking at the commissioning of the years ago broke down in 2016, the country
they can streamline to operate new machine at the Institute headquarters in was plunged into a crisis where some
administration independently. Mulago, Prime Minister Ruhakana Rugunda of those badly in need of radiation were
of cases to make He also expressed said the government had acquired the new referred to the AghaKhan hospital in Nairobi
courts accessible concern that equipment at 664,000 euros. whereas some people who couldn’t travel
to all. the judiciary Yukiya Amano the Director General, succumbed to their various cancers. Now,
This judges’ operates with a the International Atomic Energy Agency Dr. Jackson Orem, the Institute’s Executive
conference comes small budget that (IAEA) a global entity that installed the new Director says in addition to the new machine,
amidst mounting doesn’t allow it machine said the right precautions had been construction of new bunkers is taking place
criticisms dispense justice in taken and therefore Ugandans should be where other forms of radiation treatment like
regarding the a timely manner. confident that they will be getting the right brachytherapy will be provided.
service. He said Ugandans should be proud

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Dial *134 * 7#
4 Jan 26 - Feb 01, 2018
 Week

Kitata, Boda boda 2010 leader arrested

In a Jan.20 operation, the Internal ten other groups members were arrested
Security Organisation (ISO) and) too some intercepted as they left Top
Chieftaincy of Military Intelligence radio offices in Bwaise where they had
(CMI) arrested Abdul Kitata, patron been hosted for a talk show.
of notorious militia group Bodaboda Boda boda 2010 though started as
2010 shortly after the police boss an organization for riders in 2010, they
Kale Kayihura defended the group in came to the limelight during the 2016
parliament that it had helped him wipe elections when they openly campaigned
out criminals from the city. for the ruling NRM. Last year the group
Kitata whose office found in Wakaliga clashed with another Boda Boda riders’
a Kampala surburb was raided and faction in Wakaliga leaving many injured
number plates, machetes, hammers and others in police custody. Also last
and iron bars were recovered was year, at the height of Togikwatako
Ronald Kibuule arrested after members of his group campaign against lifting of presidential
had confessed to having been involved age limits, the group attacked a busload
Minister Kibuule grilled over in a gruesome murder of the Case of school children for wearing red colors
grabbing land in Buikwe Clinic accountant whose body had been
discovered beyond recognition. Up to
– a color that was being used by those
involved in the campaign.
Ronald Kibuule, rather arrogant
the State Minister minister said he
for water resources has no business
who recently with Buganda land
came under board and doesn’t
limelight over know what the
brawl with bank Namasole (queen
guard and against mother of the
parliamentary rules reigning Kabaka of Atlas Oranto | Proudly Exploring Africa
entering the house Buganda tasked to
with a gun was manage Buganda www.atlas-oranto.com
once again in the land board as
news for allegedly the restoration
grabbing up to 85 law used by Join us IN EXPLORING AFRICA. Oranto Petroleum Limited is an indigenous African oil
acres of land from government to and gas exploration company. Within the group of companies and affiliates we have
locals at Kigaya return property operations in 11 different jurisdictions spanning 22 contract concessions. Oranto
Golomola village of cultural Petroleum Limited has been operating in Uganda since 2013 and has been awarded two
in Buikwe district. institutions) means exploration concessions in Uganda. During 2018 we will expand our Ugandan subsidiary
Kibuule who because she is not and relocate our office to Entebbe.
appeared before the an elected leader
Justice Catherine something that Oranto Petroleum Limited is an equal opportunities employer. Or philosophy is to
Bamugemereire angered one of the recruit and professionally develop in country nationals to support each of our opera-
chaired land commissioners –
tions across Africa. Our new Entebbe office will be strategic for our expansion in Uganda
commission of Robert Ssebunya
inquiry on Jan.17 who asked him and as a geoscience technical base for all operations in the region.
was said to have to be humble and
given families respect the people We have the following vacancies for which we shall be recruiting during 2018.
living on the land of Mukono North
up to January 20 who represents in Oil and gas exploration vacancies at our soon to open Entebbe office.
to leave or face parliament.
eviction. However However he
 General Manager
denying issuing committed that
such a threat, he will not evict
 Exploration Manager
Kibuule said he anybody although  Administrative Secretary
bought the land already some  Communities / Public Relations Officer
in question at victims have  National Content Officer
Shs120million and appeared before  Technical Services Manager
compensated the the commission  Legal Advisor
over 20 families accusing him of  Administrative and Human Resources Manager
living there. deploying security  Finance Manager
When asked personnel who  Geophysicist
whether he is arrested, detained  Geologist
aware that the and tortured  Technical Assistant
land in question people that some
belongs to Buganda had to flee the area Visit www.atlas-oranto.com for a list of the current vacancies.
kingdom, the in fear for their life.

Jan 26 - Feb 01, 2018 5

Week

Suspected Case Clinic accountant murderers arrested

A car belonging to Late Francis
Ekalungar, a Case Clinic account
was recovered on Jan.21 during an
operation conducted by the military
police in Kabowa, a Kampala suburb.
Ekalungar who went missing only
for his body to be discovered burnt
used to drive a Toyota premio which
was discovered at one of the homes
searched with number plates changed.
Three men – Mawa Muzamir, Kandi
Muhindo and Fagil Muwendo found
in possession of the car have now been
arrested as investigations into the
murder continue.
The Joint Anti-Terrorism Task Force
(JATT) that were in an operation
to crack down the Boda Boda 2010
criminal gang ,confirmed that the
vehicle belonged to Ekalungar and
its original number plate had been
replaced with another one.
Ekalungar disappeared earlier in
the year when he had gone to deposit
money in the bank. His body was only
discovered after his employers filed a
case of missing person with the police.

25 peace corps education volunteers sworn in Parliament week marked,

The US and culture and participants raise money for albinos
Ambassador to then they received
Uganda Deborah technical school- Shs75million was necessities remain too
Malac on Jan.18 based training collected on Jan.21 in expensive for some to
presided over at Shimoni Core a campaign kicked afford.
a swearing in Primary Teachers’ off by parliament as Sekyanzi who asked
ceremony for College and Kira part of events to mark government to set
25 new Peace Primary School. its annual parliament up a special fund for
Corp volunteers The latest week celebrations. The albinos just like they
specializing cohort brings the money will be used have done for other
in educational number of Peace to construct a medical special interest groups
activities. The group Corps Education center and a school said people who fail to
of the US volunteers Volunteers serving for people living with get such essentials as
who will be in in Uganda to albinism. Speaking creams end up getting
Uganda for two 59 and the total shortly after the skin cancer. He also
years will focus on number of Peace Charity Walk, Speaker called upon UNEB
promoting reading Deborah Malac Corps Volunteers Rebecca Kadaga to consider printing
and literacy. in-country to 162. urged the Ministry of exams for people
“By encouraging said Malac. The sectors covered Health to put creams living with albinism in
children to read – According to a include public that albinos use to larger fonts for some
even just one child statement by the health, agribusiness, protect themselves have visual challenges
– our Volunteers are US mission, the and primary from the effects of too. However,
helping to unlock volunteers have education. More the sun on the list of parliament targets to
the enormous spent about three than 1,700 Peace essential drugs. She raise Shs5billion for
potential of months in the Corps Volunteers was responding to funding a medical
Uganda’s youth – country where have served in a call made by Jude center and school
potential I have no about four weeks Ugandan since Sekyanzi, Executive project.
doubt will drive this were spent with the program was Director Uganda About 15,000 people
country forward in host families to established in the Albinos Association live with albinism in
the years to come”, learn local language country in 1964. who said such Uganda.

6 Jan 26 - Feb 01, 2018

Humour Did you know?
15-year old schoolboy
hacked CIA, FBI

A schoolboy hacker; Kane Gamble,

between June 2015 to February 2016,
impersonated CIA director, John Bren-
Former FDC President Mugisha Muntu has launched his nationwide consultative meetings where he will nan, to gain access to top secret military
discuss the people’s views with different categories of people. reports and even take control of his wife’s
iPad.
The 15-year old, operating from his
home in Leicestershire, UK, gained access
to passwords, personal information, secu-
rity details, contacts lists and sensitive
documents about operations in Afghani-
stan and Iraq.
Gamble, who founded the pro-Pal-
estinian group ‘Crackas With Attitude’,
taunted the security service on Twitter
about his successes.
Gamble’s other targets included former
deputy director of the FBI Mark Giuliano,
secretary of Homeland Security Jeh
Johnson and James Clapper, Director of
National Intelligence under Obama.
Gamble, who is autistic, boasted about
phoning the communications company
Verizon and setting up call-forwarding to
divert all Clappers calls to the Free Pales-
The Opposition Forum for Democratic Change has challenged the Government and Parliament tine movement.
to investigate the relationship between the Inspector General of Police Kale Kayihura and a local
motorcycle operator’s association, Boda Boda 2010. He also boasted about carrying out ‘the
best breach ever’ after accessing an FBI
database to get the names of 1,000 staff.
He also misdirected police into launch-
ing a ‘swat’ attack on John Holdren, a sci-
ence and technology adviser to President
Barack Obama.
The Department of Homeland Security
spent 40,000 dollars to resolve the prob-
lem and suffered ‘substantial reputational
damage’, the court heard.
Gamble was arrested in February 2016.
The judge described Gamble’s activity
as ‘torture in the general sense - he got
these people in control and played with
them to make their lives difficult’.
Gamble also used an anonymous Twit-
ter profile to talk to journalists.
He reportedly told a journalist: “It all
started by me getting more and more
annoyed at how corrupt and cold-blood-
On Jan. 22Former International football star George Weah was sworn in as Liberia’s new president. ed the US government are. So I decided to
do something about it.”

Jan 26 - Feb 01, 2018 7

 News analysis Health Business
Launch of the Panic as China stops Why blood shortage Banks rollout lebratin
Mutebile centre import of plastics hit hospitals agent banking Ce g

Issue No. 504 Jan 19 - 25, 2018

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

Years

Surprises in 2018/19
budget plan
Finance Ministry makes right
moves, but timing could be wrong

Inbox
Works &
Agriculture

Follow us on Twitter @
transport
831.7 Bn
4,706.7 Bn

Accountability Interest

http://twitter.com/#!/ugandatalks
payment
866.4 Bn
2,700.7 Bn

29.2
Justice/Law Energy &
order mineral
1,104.2 Bn
Trillion development
2,529.2 Bn

Security

Follow us on Facebook @
1,356.6 Bn Education
2, 419.2 Bn
Public sector
mgt Health

www.facebook.com/TheIndependentMagazineUganda 1,448.9 Bn 1,636.1 Bn

www.independent.co.ug

Trump simply being honest

Letters are Refer to: “African Union nations… what have what ‘others’ and not an
welcome ! slams ‘hurtful, upsetting’
Trump remark” (The
you. Whatever ‘others’
might label us, the
insignificant part of us
do think about us; isn’t
The Editor welcomes short and Independent Online responsibility lies with it!? Why do we emigrate
concise letters from our esteemed Jan.12). Guys! Let’s be us! U.S. President Donald often ‘shamelessly’?!
readers on topical issues. Please proactive about ourselves Trump is simply honest; Tesfaye
send them to:
as countries, continent, albeit rudely, about
The Editor, The Independent
Publications Ltd,
P.O Box 3304,
Plot 82/84 Kanjokya St,
Trump’s Africa sh**holes
Kamwokya.
Kampala,Uganda. Refer to: “African Union Togo etc… Let’s take a look petent and corrupt leader-
slams ‘hurtful, upsetting’ at other states: Uganda, ship.
Email: editor@independent.co.ug Trump remark” (The Inde- Eritrea, Somalia, South Maybe the ‘orange luna-
pendent Online Jan.12) Sudan, Sudan, Malawi, tic’ occupying the White
Instead of our rush to con- Zambia, Zimbabwe – the House isn’t wrong. He is
demn U.S. President Don- list goes on. just saying what is on the
Great read on intellectualism ald Trump, I suggest we all Most of our countries minds of people all over
Refer to: “The poverty of Africa’s elites” take an honest “man in the are completely dysfunc- the world but they are too
(The Independent Jan.12). If you have not yet mirror” look at ourselves. tional (essential services afraid to voice that particu-
read it, read a book titled `Hive Mind: How Many African countries like health care are largely lar opinion.
Your Nation’s IQ Matters So Much More are indeed “shitholes”. non-existant, the state only If indeed our countries
Than Your Own’. Take a really good look at serves the interest of the weren’t “shitholes”, our
Nowa Lubega our continent; is there, with thugs in power and their people would not be facing
the exception of Senegal, families and hangers-on) the humiliation of slavery
any really functional fran- – they can barely support in Libya, they would not be
Janet Museveni on cophone African
state?
themselves and
their people
drowning in the Mediterra-
nean – while in a desperate
moral deficiency Let’s start: without bid to reach Europe.
Burundi, continu- I can only hope that
Refer to: “Janet Museveni releases PLE DRC, CAR, ously beg- Trump’s description can
results” (The independent Online). Mama Congo ging for spur our leadership in a
Janet I have respect for you especially for Brazzaville, handouts direction geared to grow
your dignity and that of your children, Cameroon, – which by the our countries for Africans.
which I credit to you too. However, I was a Mali, way are also mis- Other regions (specifically
bit surprised by your reference to moral defi- Niger, managed, and we Malaysia, Singapore, Thai-
ciency as if new to you. In my view it defines are governed land, South Korea and now
the Ugandan and African societies and is the by a seem- Vietnam) have done it. Why
single most significant impediment to peace ingly can’t we?
and prosperity. Sort this and you will be on incom- Dan
the road to Heaven on earth. Hope you get
this message.
Ruganzu Ndoli
No country should be called that!
Tourism buses boost Refer to: “African Union was a “shithole” before mother.This great country
Refer to: “Uganda tourism sector gets bus- slams ‘hurtful, upsetting’ they destroyed it! I don’t whose leader is a disgrace,
es boost” (The Independent Online Jan.09). Trump remark” (The Inde- think God created shithole resents being called the
While this may be an innovation in the tour- pendent Online Jan.12). countries. Congo was no a “evil empire”, may be
ism industry, I doubt its sustainability. The Different countries have “shithole” country before the “dotard” should be
buses seem large and luxurious, whose full different problems, many it became a “property” of reminded that his “shit-
capacity utilisation and cost of maintenance are trying in their little the king of Belgium! Poor hole” mouth ought to be
can turn into a nightmare. Otherwise, except ways to make a difference, Haiti had to pay millions closed for repairs, enough
schools or International Conference atten- but things have not been in compensation to France is enough. Deposed former
dance, how many Ugandans and/or inter- easy sometimes because for decades for becoming president of Zimbabwe,
national tourists have group sight-seeing? of reasons beyond their independent.Whatever Robert Mugabe, used to tell
Anyone’s guess is as good as mine. But all control especially like con- problems it has, no coun- them off, that’s why they
the same good luck. nivance from you know try should be called that! “fixed” Zimbabwe.
Raymond Otika who. I didn’t think Libya It’s akin to insulting your Joe

8 Jan 26 - Feb 01, 2018


Reconsidering governance in Africa
By Andrew M. Mwenda
Why our obsession with copying and pasting western
institutions causes more harm than good
I
f you follow debate on Africa anywhere
in the world, everyone will tell you that
the main problem with our countries
is governance. Yet this claim is new,
picked from the World Bank’s World Devel-
opment Report of 1989. Now it has entered
the lexicon of politics as a religion; the very
reason we need to focus on it. In the 1960s
and 70s, the main issue was that African
countries are poor because of their integra-
tion into the world economy as producers
of unprocessed raw materials.
We African elites have learnt about the
governance principles of the western world
largely through books, media and in class.
Often these sources give us the governance
ideal, which, while reflecting an aspect
of reality in the West, do not give the full
practical application of the ideal. The actual
practical politics of the West diverges quite
significantly from the ideal.
Let us also remember that the governance
strategies of the West evolved organically
out of their own experience – their political
and social struggles. These struggles them-
selves were rooted in a particular culture
and were nourished by nutrient norms,
values, habits and shared mentalities. So
the governance strategies, principles and
institutions of the West reflect a particular
historic experience that cannot be univer-
salised.
To now transplant them from their habitat
and treat them as universal has two major
problems. First being neophytes, we seek to
transplant the ideal, not the actual practice.
We are blind to or ignorant of the myriad
accommodations and adjustments Western
societies have to make daily for the ideal to
work.
Second, we superimpose this governance
ideal on a society with entirely different
social structures, history, culture, norms,
values and shared mentalities. We then
imagine such a transplant will work just
fine. Just imagine we get the governance
strategies, principles and institutions of
Buganda kingdom in 1880 and take them
and superimpose them on the people and
society of United States of America today.
Then Americans have to travel to Uganda
to learn in Luganda about how to manage
their own industrial society. How would
they work?
Karl Marx argued that every society is
built on an economic base – the hard reality
The Last Word
of human beings who must organise their
activities to feed, clothe and house them-
selves. That organisation will differ vastly
from society to society and from epoch to
epoch. It can be pastoral or built around
hunting or grouped into handicraft units or
structured into a complex industrial whole.
For Marx, whatever form in which people
solve their basic economic problem, society
will require a “superstructure” of noneco-
nomic activity and thought. It will need
to be bound together by customs or laws,
supervised by a clan or government and
inspired by religion or philosophy.
Marx argued that the superstructure
cannot be selected randomly. It must reflect
the foundation on which it is raised. For
example, no hunting community would
evolve or could use the legal framework
of an industrial society; and similarly, no
industrial community could use the con-
ception of law, order and government of a
primitive hunting village.
If Western governance strategies, prin-
ciples and institutions work well in the
West, it is because they reflect the historic
reality of the societies. If they are failing in
our nations, it is not because the leaders are
not committed. It simply means that these
strategies, institutions and principles do not
fit the context. We have peasant societies
still living at subsistence level trying to run
affairs of government using governance
strategies, principles and institutions of an
industrial society. And we complain that
they are not working. They cannot work.
For these borrowed governance strate-
gies to work they need a lot of domestica-
tion. Every day, Africa leaders and elites
are domesticating them. But we call such
domestication dysfunction. Yet “dysfunc-
tion” is the way such copy and paste insti-
tutions work, not the way they fail. Our
political struggles are always over whether
we are running the systems as described in
books. Most of our political and constitu-
tional struggles are over how “correctly” we
are applying the ideal.
Consequently we have spent over 50 years
changing leaders for not upholding these
governance ideals without ever fundamen-
tally changing the quality of governance
itself. President Yoweri Museveni who came
to power pontificating how the problem of
Africa is leaders staying too long in power
is trapped in power. He has been in it for
Opinion
32 years and doesn’t seem to have a plan to
leave. Now he has to find new explanations
for his original statements. His critics con-
sider him power hungry. That is only partly
true. Critically, Museveni finds himself also
a hostage of that power.
To avoid being misunderstood, let me be
clear: our problems are largely local. Even
the demands to solve them are largely
locally generated. This is not to deny the
external pressures and influences which
come through NGOs, donor pressure, ideo-
logical capture etc. That is why I have used
the word largely. Yet in spite of the local
origins of our problems, the problem begins
when it comes to designing any framework
through which we can solve them. We
don’t examine our specific circumstances.
Instead we retreat to a theory in a textbook
published at oxford or Harvard, itself devel-
oped out of the experience of Britain or
USA. One of the factors behind our many
frustrations and failures is this mismatch
between demands and solutions.
Today, Rwanda could be the most suc-
cessful country in Africa in terms of the
functioning of public institutions. The lead-
ership of Rwanda is also deeply modernist.
But in spite of its modernist ambitions, it
has tapped deeply into its culture, norms,
values and traditions to design her gover-
nance architecture. This could also have
been facilitated by two things.
First a shared culture and history means
there is something to appeal to. Uganda and
most Africans countries don’t have such
a shared history and traditions given our
ethnic heterogeneity. It becomes difficult to
mould common and shared values among
so many nationalities.
Second, the 1994 genocide offered
Rwanda an opportunity for a fresh and
clean start. The destruction it wrought was
so deep and comprehensive that it practi-
cally obliterated old forms of social control,
and left society too weak to resist reform.
The group that captured state power was
tightknit and strong and could therefore
mount relatively unified action without
generating significant secondary contesta-
tions from other societal forces. The circum-
stances that have created Rwanda’s success
are rare to find and difficult to recreate.
amwenda@independent.co.ug
Jan 26 - Feb 01, 2018 9
cover story

Should government
takeover UMEME job?
Karuma, Isimba power raises new
questions

10 Jan 26 - Feb 01, 2018


Inside the 600MW Karuma power dam, which is expected to be commissioned this December
O
By Haggai Matsiko
n the face of it, Uganda’s
sole national electricity
distributor, Umeme
Ltd, has a stronghold
on the sector. It has
seven more years on its
concession, has recently posted stellar
financial and operational performance,
and – with workers’ pension fund NSSF
as the majority shareholder – is largely
a company with conc Ugandan flavors.
So why has the renewal of its concession
become a hot fighting topic in the corridors
of its head office in Kampala, Ministry of
Finance and State House?
Apparently, after years of focusing on
increasing electricity generation capacity,
the government is now desperately
looking at how to transmit and distribute
the power expected from the new 600 MW
Karuma and the 183 MW Isimba.
The two dams are expected to be
commissioned in December and August
respectively. And the new power must
find where to go profitably or else the
projects risk becoming white elephants.
An official at the Finance Ministry
intimated to The Independent that the
plans for distribution of the new power are
already behind schedule.
Although the urgent need to find means
of transmission and distribution of the
new power is clear, the choice of who will
implement it is less clear. Umeme wants
the deal because it would mean a doubling
of its business.
In fact, Umeme has over the years
invested $500 million to show readiness
for this moment. It has also already carried
out studies which indicate that it needs to
invest between $1.4billion and 2 $ billion.
But for it to get the new deal, it says,
its concession must be extended from
expiring in 2025 as per the 2005 concession.
And its arguments make sense – from a
purely business perspective.
A sector insider told The Independent
that for every dollar spent on generating
a unit of power, another dollar is required
to transmit and distribute it. Government
estimates that some $3 billion is required
to transmit and distribute the new power
being generated. While transmission
requires 30 percent of this, distribution
requires a whopping 70 percent.
The power distributor says, if the billions
of dollars it needs to raise and invest into
the network to distribute the new power
are to be recovered within the remaining
seven years, the lenders will be very
cover story
expensive. The more practical way would
be for it to raise funds to be recovered over
15 years. However, even this has a catch -
no lender would be ready to lend Umeme
money to be recovered over 15 years if it
has only a seven year concession. It must
table a 15 year concession, at least.
Luckily for Umeme, officials at
Ministry of Finance appear to agree
with its argument. But they also have
strict instructions from President Yoweri
Museveni—to ensure that any new deals
result in cuts in the cost of power to
consumers; especially industrialists.
That is where the overseers of the
Umeme concession, the Uganda Electricity
Distribution Company Ltd (UEDCL) come
in with what they say is a proposal that
could easily guarantee the lower tariffs
Museveni wants. Instead of Umeme,
UEDCL says, the government should
invest in the distribution network.
Clearly, judging by correspondence
coming out of UEDCL which leased
Umeme the concession, it appears not
everyone is impressed.
UEDCL’s managing director, Joseph
Katera, last December wrote to Secretary
to the Treasury, Keith Muhakanizi laying
out options for financing the distribution
network.
Jan 26 - Feb 01, 2018 11
cover story
In summary, Katera noted that it was
more affordable for government to invest
in the network than for Umeme to do the
same.
UEDCL appears to have got inspiration
from generator UEGCL, which wrestled
control of the construction of Karuma
and Isimba and is angling to wrestle the
control of Nalubale and Kiira dams from
Eskom and become the dominant power
generator.
Already, UEGCL is pushing for a take-
it-all deal on Karuma and Isimba power,
akin to what that government awarded the
proprietors of the 250 MW Bujagali power
in order to be in position to make them
profitable ventures.
Under this arrangement, the
government would pay for all the
generation capacity of the dams. This
means all the 250 MW from Bujagali, plus
Karuma and Isimba 783 MWs.
But UEDCL might not be as lucky as
UEGCL because officials at Finance, it
appears, are not overly enthusiastic about
the proposal that involves government
raising more money – through borrowing.
They are more inclined to support the
option in which Umeme invests its own
money and carries on the status quo.
Finance officials point out that these
dams have been constructed using
borrowed money—over $2billion from
China’s Exim Bank, which needs to be
paid back before more debt is pumped
into the sector. That is why focus is more
on ensuring government or specifically,
UEGCL, pays back by being able to sell the
power.
For that to happen, the distribution
network needs to be overhauled but not by
accumulating more debt, officials say.
As the jostling continues, insiders say
Museveni has added his voice to these
discussions – in support of Umeme.
In mid-December at a meeting with
investors and government officials,
Museveni reportedly urged authorities
involved to fast-track the renewal of
Umeme’s concession.
Despite Museveni’s green light,
however, Umeme must wait until
negotiations are concluded amongst
the distributor and officials at the
Energy Ministry, the UEDCL, Electricity
Regulatory Authority and Finance
Ministry.
At the heart of these negotiations are
the two sticking issues—how to raise
some $ 3 billion required for investment
in distribution and how to review terms
of major players in the power sector
including Umeme in order to bring down
the costs of power.
Even as these discussions go on,
insiders say, Umeme appears to have an
upper hand. For one, it already operates
the concession, is increasingly seen as
12 Jan 26 - Feb 01, 2018
Keith Muhakanizi
Umeme MD Selestino Babungi
a Ugandan company—the NSSF is the
majority shareholder with 23 percent
shares.
But mostly, the company is seen as the
government’s best bet as far as raising
billions of dollars required to be invested
into the distribution network, badly
needed ahead of the commissioning of
new power plants that are expected to
more than double Uganda’s generation
capacity.
Impressive numbers
At the moment, the country’s electricity
installed capacity stands at about 850MW,
with Bujagali Energy Limited alone
generating 250MW and the rest by Kiira,
Nalubale and other small power stations.
An additional 718 MWs stands to bring the
total to 1468 MWs.
Umeme projects that in 2018, the
demand will be 877MW and will have hit
1, 364MW by 2021.
On its part, government projects that
new demand from projects like the
Standard Gauge Railway, Namanve
Industrial Park, the mining sector among
others, could come up to 1, 630MW. This
would be in addition to existing demand,
which is easily about 2, 500MW.
Although some remain skeptical about
the numbers, insiders say, jostling for the
distribution deal shows how lucrative the
sector is becoming.
Umeme today also appears more
confident and is fronting its performance
as it garners for a renewal. As of last year,
the company had increased connections
to 1, 064,547, reduced energy losses to
17.5 per cent and increased collections to
99.9 per cent. The same year, Umeme’s
revenue grew by 6.9 percent to Ushs 704.4
billion, driven by a 6.7% increase in units
sold (GWh) and price adjustments. To
make that money, the entity sold GWh
(GigaWatthour) 1,630. If this doubled
given the new supply and demand
projections, the utility would be looking at
over Ushs. 1.4 trillion a year.
The only huddle for Umeme appears to
be Museveni’s determination to reduce the
cost of electricity for consumers. Museveni
already has been firmly pushing for cuts
from Umeme on Bujagali power and is
unlikely to be swayed.
He has directed officials at Finance to
negotiate with lenders of Bujagali investors
to extend the loan repayment period and a
tax waiver as a measure to bring down the
cost of electricity.
Museveni, according to sources, wants
the US$900 million loan facility, which was
to be paid by 2023, to be extended by 15
years. He has also offered a tax waiver over
the same period if the tariffs come down.
On Umeme’s part, President Museveni
and his technocrats at Finance want
Umeme to cut Return on Investment
(ROI) from 20 to 12 percent. Umeme has
been pushing to keep it at least 15 percent,
insiders say. They believe the two parties
might settle for a middle point.
Those against the 20 percent ROI say
it was premised on the risk profile of the
country in 2005, which has since changed.
“We are saying that Uganda is less
riskier,” an official at Finance told The
Independent.
Indeed, in 2005, the situation was very
different. At the time, when government
decided to unbundle Uganda Electricity
Board (UEB) into three separate entities to
manage electricity generation, transmission
and distribution, it hired an international
company called Fieldstone Private Capital
Group Limited to help handle the matter.
Two years later, government put out
a tender for generation and distribution

The 183MW Isimba power dam under construction
concessions.
Five companies expressed interest and
came to Uganda to do a due diligence on
the sector. After studying the obtaining
circumstances, all of them pulled out
without submitting a bid.
Part of the problem was that Uganda’s
electricity tariff was being deliberately kept
low by government subsidies and had
remained unchanged from 1993 to 2002. It
was far below the actual cost of generating,
transmitting, and distributing electricity.
Besides rampant power thefts, defaulters
had also shot nontechnical losses through
the roof. The situation was compounded
by the fact that UEB had spent decades
without properly investing in improving
the distribution network, which led to high
technical losses.
The Commonwealth Development
Corporation (CDC), which would later
acquire the distribution concession, raised
these issues noting that if they were
addressed, they could bid.
The negotiations between government
on one hand and CDC and Eskom, which
later took up the generation concession, on
the other, lasted three years.
Government promised to protect the
investor from regulatory and political
risks and the concession was designed by
escalating the penalties government would
pay in case of a breach.
CDC and Eskom feared that if anyone
attempted to increase the tariff, especially
at a steep rate, it would cause thefts,
defaults and illegal connections.
The concession made it clear the tariff
would not raise more than 10% in any
Umeme’s
revenue grew
by 6.9 percent
to Ushs 704.4
billion, driven
by a 6.7%
increase in
units sold
(GWh) and price
adjustments
given year and not more than 20% in any
three consecutive years.
But even after government had agreed
to these demands, Umeme was reluctant to
join and asked for an 18 months concession
as a trial run to see whether government
would honor its word.
They agreed to invest a nonrefundable
$5m in these 18 months. Five months to the
end of that period, in March 2005, power
supply declined by 50 percent due to low
water levels in Lake Victoria. This forced
government to bring in thermal generators,
which escalated the cost of electricity and
increased the cost of subsidies.
Amidst these financially crippling
circumstances, in less than two years,
government increased the tariff by
98 percent contrary to the concession
cover story
agreement.
Umeme threatened to terminate the
concession, triggering negotiations.
Umeme argued that such a sudden
hike in the tariff was going to increase
illegal connections and defaults, making
it difficult for the company to reduce
nontechnical losses.
Government was forced to suspend
the loss reduction targets to keep Umeme
involved. It is only after electricity supply
constraints were eased in 2009 that ERA
began to set collection and loss reduction
targets.
In 2009, losses fell from 35 percent to 30
percent and in 2010 they fell to 28 percent.
Under the concession agreement,
Umeme was supposed to have reduced
electricity losses from 38 percent to 28
percent in the first seven years of the
contract. By 2011, they had reduced them
to 24 percent. They were supposed to
have invested US$65m in the first seven
years; they had invested $130m. They were
supposed to make 60,000 new connections
in the first seven years; they had made
220,000 connections. They were supposed
to increase collection of revenue from 75
percent to 95 percent; they were collecting
98 percent of total electricity sold as per
2013.
Despite all this, a parliamentary
committee investigated the power
sector and recommended that Umeme’s
concession be suspended. As a result of
this turbulent history, Umeme, has learnt
to wear protective gear when dealing with
electricity concession issues.
Jan 26 - Feb 01, 2018 13
news analysis
NRM women leaders at a conference in Wakiso district in January 2017.   INDEPENDENT/JIMMY SIYA
NRM’s big numbers
Ruling party’s unrivalled growth scrutinized
as it marks 32 years in power
By Ian Katusiime
I
n 2006, after the first election since the
country adopted the multiparty system
of government in 2005, the ruling Na-
tional Resistance Movement (NRM) had
205 MPs, after the 2011 elections that shot
to 263 and after the latest 2016 polls, that
number hit 294.
By contrast, the number of MPs from
the biggest opposition party, the Forum for
Democratic Change (FDC) has remained
almost static. After the 2006 election, the
party had 37 MPs, after 2011 it had 34 leg-
islators, and after 2016 it has 36 MPs. The
small parties have shrunk even farther.
Only the Independents; MPs without party
affiliation, have grown to 66 – most of
whom are sympathetic to and vote with the
ruling party.
In the last ten years, the government cre-
ated a number of new districts, increasing
the number of constituencies at parliament,
LC5, and LC3 levels. And the NRM domi-
nated most of the elective positions.
As a result of this dominance, the NRM
celebrates 32 years since it captured power
on January 26, 1986. A debate is raging
about whether the party has grown too big
to be good for Uganda.
Richard Todwong, the Deputy Secretary
General of NRM, is not among those wish-
ing the party was smaller and opposition a
little bigger to create a semblance of demo-
cratic competition. He says the party’s big
numbers are proof of NRM’s invincibility
14 Jan 26 - Feb 01, 2018
and is happy that the growing trend is
unlikely to be reversed soon.
”This country has 40 million people of
whom 16.5 million are registered voters. Of
those 16 million, 13 million are NRM voters.
So we have three quarters of the national
register,” Todwong brags.
He adds, “We have flag bearers in all
positions and we are just waiting for the LC
1 elections date to be clarified and we field
our candidates.”
Todwong says 75% of the LC members at
LC 3 and LC5 level are NRM in addition to
the 13million voters who he says are NRM
supporters on the national register, and
he also makes mention of the party’s vast
majority in parliament.
“Let us just look at the recent by election
in Ruhaama county (Ntungamo district),
the opposition did not field a single candi-
date, so an NRM candidate was running
against an NRM leaning independent in the
race,” Todwong told The Independent.
During the 2016 general elections, NRM
had 289 candidates in the available 290 con-
stituencies while FDC managed only 201. At
the district level, NRM fielded candidates
for all the 112 districts for the woman MP
position while FDC had 61 candidates.
Of the 66 Independent MPs, 44 are allied
to the NRM while only 2 have an associa-
tion with FDC. President Museveni has
also not rested on his laurels when it comes
to boosting NRM’s strength.
He hits the stump regularly for NRM
candidates in by-elections including those
vying for the district chairpersonship. But
has NRM’s majority helped the party to
improve governance?
NRM caucus overshadows parliament
Thanks to numbers, the NRM caucus has
now been turned into a de facto parliament.
On a number of occasions, the NRM caucus
sitting at either State House Entebbe or at
the National Leadership Institute (NALI)
in Kyankwanzi district passes resolutions
that in turn are passed by parliament. For
instance, NRM selected its six candidates for
East African Legislative Assembly (EALA)
which is based in Arusha at a caucus gath-
ering at State House Entebbe.
The proposal extending the parliamen-
tary term from five to seven years was
adopted at an NRM caucus meeting. Other
controversial amendments have been
passed after the NRM invoked its strength.
In December 2012, NRM used its majority
to pass an oil law with a contentious clause
that empowered the line minister to grant
and revoke licences, negotiate and endorse
petroleum agreements.
The law was passed despite criticism that
it concentrates so much executive power in
the minister, making the individual suscep-
tible to bribery considering the amount of
finances involved in oil transactions.
Dr. Livingstone Sewanyana, the Execu-
tive Director Foundation for Human
Rights Initiative (FHRI) and member of the
Uganda Governance Monitoring Platform
(UGMP), an entity that monitors the coun-

Composition of Parliament
2006 2011
11.5%
24.3%
64.2%
70.2%
NRM
FDC
OTHER
try’s governance trends describes a situation
akin to a tyranny of numbers.
“The NRM majority in parliament has
adversely affected governance and has been
used to the detriment on public policy. The
majoritarian principle as advocated for in
a democracy has been misunderstood to
mean that they can pass anything even
when it is unpopular yet in a democracy
promoting the will of the people is key.”
He cites the Public Order Management
Act (POMA), the age limit amendment and
the NGO Act as some of the laws that have
been passed just because NRM enjoys a
majority and adds that the ruling party is in
a lame duck position.
“Now that the NRM has reached a point
where they have nothing much to offer, the
NRM caucus instead of working to promote
wellbeing and good governance, their sole
preoccupation now is how the regime sur-
vives longer in power.”
The NRM is marking its 32nd anniversary
on the back of a major legislative achieve-
ment- amending the constitution to enable
its founder and longtime leader, Yoweri
Kaguta Museveni, run for president for as
long as he lives.
The amendment was considered a gift to
Museveni who signed it on Dec. 27, a week
after its passing. The party won a hard
fought campaign last year over the amend-
ment as some NRM MPs even faced humili-
ation as their constituents warned them
publicly against voting for the amendment.
Critics and those in the opposition say
NRM has regressed and turned on many
of its founding principles but some of its
members hail this as a mark of the party’s
popularity.
Francis Babu, a former NRM MP for
Kampala Central, is irked when people
say NRM has used its big numbers to pass
oppressive laws, specifically the POMA and
the recent constitutional amendment on the
2016
9%
6.2%
15.4%
20.8%
8.45%
70%
NRM
NRM
FDC
FDC INDEPENDENT
OTHER OTHER
presidential age limit.
“That is a cheap shot,” he says.
POMA requires anyone willing to hold a
public assembly to notify the Inspector Gen-
eral of Police or an authorised officer three
days before the event. The law was heavily
criticised by activists and those in opposi-
tion. Babu says it was inevitable for a law
like POMA to pass due to the trend opposi-
tion politics had taken in recent years.
“These people would go and hold ral-
lies in the middle of Luwuum Street and
people’s property would be looted. But any-
way every country has a way it manages
its public spaces whether you go to the UK
or South Africa, you cannot just go causing
insecurity and you expect a government to
look on.”
Babu says, however, to assess the NRM’s
legislative record, all Bills passed in parlia-
ment need to be considered.
“How many Bills have been passed?” he
asks, “And how many of those have been
good for the progress of the country?”
He says progressive Bills have been
passed over the years in agriculture, liber-
alisation of the market and economy and
other sectors. The 9th parliament (2011-
2016), which passed the POMA, also passed
another 90 Bills.
“You can’t just pick out the POMA
because you do not like it,” Babu says.
But Mwambutsya Ndebesa who teaches
political history at Makerere University,
says NRM‘s majority is a result of ‘manu-
factured numbers’ which are bought for
political expediency and that this has added
to commercialization of politics and helped
Museveni strengthen his grip on power.
“Even with the numbers, the fact is
Museveni and his NRM MPs are now very
unpopular. Because they can’t do anything
about it, that’s why you see Ugandans are
now resigned and don’t care what happens
because there is nothing much they can
news analysis
NRM numbers
75%
NRM LC3 and
LC5 members
NRM MP
289
candidates who
contested in the
290 constituencies
in the 2016 polls
13m
NRM registered
voters
change as long as Museveni controls this
vital group,” he says.
“Democracy is a good thing but this
majority thing has shown that it can actu-
ally have a bad taste. Now the opposition
has no purpose in our parliament. They
can never pass anything however good the
issue is.”
He says NRM has used its numbers to
subvert democracy and breed impunity.
He says the voice of the people is no longer
listened to as government knows that what
it wants will easily sail through parliament
even when it is unpopular among the pub-
lic.
Rebel MPs
The most recent example of the anti-
democratic tendencies within NRM, accord-
ing to critics, are the attempts by the NRM
secretariat to take disciplinary action against
the 27 NRM MPs who refused to toe the
party line by voting for the presidential age
limit to stay. With its big numbers, NRM
attempts to beat dissenters against party
position into line.
Days before the age limit amendment,
President Museveni said he would con-
sider MPs against the amendment as those
who are opposed to him. Shortly after, he
criticised the secretariat for failing to take
action against those who rebelled against
the amendment.
Earlier in 2013, the party expelled four
MPs and suspended one whom it deemed
indisciplined; Theodore Sekikubo, Moham-
med Nsereko, Wilfred Niwagaba, Barnabas
Tinkasiimire and Vincent Kyamadidi who
was suspended.
Museveni felt personal about it, another
sign that he and the party that has ruled
Uganda for 32 years, does not take its grip
on power lightly. Whether the party can
command the big numbers without Musev-
eni is another question.
Jan 26 - Feb 01, 2018 15
news analysis
Testing NRM’s
promises
After 32 years in power,
has party lost its ideology?
By Flavia Nassaka
E
very politician makes great promises
to win and retain power and Presi-
dent Yoweri Museveni has mastered
that. Every year during the National
Liberation Day celebrations, he revises old
promises and makes new ones. While the
slew of figures of kilometers of new tarmac
roads, growth in GDP figures, extension of
electricity generation and more excite many,
some analysts are more interested in the
ideological direction of Museveni and the
ruling NRM party.
And NRM Day, which marks the day
in 1986 when Museveni, then a rebel army
leader of the National Resistance Army
(NRA) became President of Uganda when
his forces captured power and declared a
government in the capital Kampala even
as they continued fighting in the rest of the
country, is a perfect moment.
The euphoria of that day has since nor-
malised into a daily grind to cope with
escalating costs of living and social services;
especially education and health, battles
over resources; especially land, corruption,
and increasing insecurity and repression of
political dissent. The political opposition has
sought to capitalise on the anger, but Musev-
eni and his party have trounced them – in
election after election, the opposition says are
rigged.
Anti-Museveni campaigners often refer-
ence Museveni’s inaugural speech on Janu-
ary 26, 1986 at the steps of parliament after
being sworn-in. He promised a “fundamen-
tal change” in the politics of Uganda built
on “a clear-headed movement with clear
objectives”.
He said the first point of the NRM pro-
gramme; the restoration of democracy
would be built on elected Resistance Com-
16 Jan 26 - Feb 01, 2018
Museveni during a campaign tour to Bugisu. Critics
say the NRM ideology has been watered down.
mittees at village, muluka, gombolola, and
district level for peoples’ voices to be heard.
The second point was security of person
and property, and the third was unity of
country and end of religious and tribal divi-
sions. Finally, he promised East African co-
operation in economic matters.
Since then, the President has been making
similar speeches explaining the NRM ideolo-
gy. The most significant was one he gave on
July 26, 2016 to a joint meeting of the NRM
central executive committee, cabinet, and
permanent secretaries at the National Lead-
ership Institute (NALI) in Kyankwazi titled
“Re-focusing on the National Resistance
Movement (NRM) Ideological Orientation”.
In it, Museveni reiterated the original
“NRM 10 Point Programme” of restoration
of democracy, restoration of Security, con-
solidation of national unity and elimination
of all forms of sectarianism, and defending
and consolidating national independence.
Point number five was building an indepen-
dent, integrated and self-sustaining national
economy, sixth restoration and improvement
of social services and rehabilitation of war
ravaged areas, seventh elimination of cor-
ruption and the misuse of power, and eighth
was redressing errors that have resulted in
the dislocation of some sections of the popu-
lation. Point nine was cooperation with other
African countries, and ten was following an
economic strategy of a mixed economy.
The President, however, based the speech
on what have become the “Four NRM Prin-
ciples”, namely: patriotism (anti-sectarianism
and anti-gender-chauvinism), pan-African-
ism, socio-economic transformation, and
democracy. He said Ugandans have inter-
nalised, generally speaking, all principles of
the NRM except socio-economic transforma-
tion. He said this is still problematic.
He described it as the evolution of society
from lower forms of social organisations to
higher forms or middle-class and skilled
working class societies. He said enabling
Uganda to become a Middle Income status
country by 2020 and a First World country in
the next 30 years if not less “is now the single
most important task of the NRM”.
Museveni has diverted
But in the run up to the NRM Day cel-
ebrations this year, Livingstone Sewanyana,
the executive director of the Foundation for
Human Rights Initiative (FHRI), says the
NRM has diverted from their own set indica-
tors in the 10-point programme, including
the prosperity for all project, and delivering
Uganda to the middle income status by 2020.
“Now they are concentrating on how
the party and Museveni survive longer in
power,” he says.
Sewanyana, who is also a member of the
Uganda Governance Monitoring Platform,
says the NRM is not willing to discuss any
post-Museveni agenda.
He says the issues Museveni noted while
coming to power in 1986, including ideologi-
cal disorientation, a weak state, suppression
of the private sector, under developed infra-
structure, underdeveloped social services,
and an attack on democracy, are once again
increasingly defining the country.
“With his long stay he is even undoing the
promises he had fulfilled,” Sewanyana says.
He cites the concept of popular democ-
racy, where Museveni came in promising
more inclusive politics and upholding the
will of the people and yet he now appears
determined to oversee attacks on democracy.
“What pre-occupies them now is how

the regime survives. After removing age
limits from the constitution, cabinet has now
passed a resolution for a referendum so that
the presidential term can be increased to
seven years,” he says.
Even senior NRM party cadre, Francis
Babu, who is a former minister and MP, told
The Independent that now is a good time
to reflect on how the NRM and Museveni’s
ideological positions have evolved over the
last 32 years.
He says NRM is declining in popularity
because of what he calls “a lot of unfortu-
nate changes” – including Museveni’s move
to recruit people from the opposition into
senior government positions.
“NRM people now just sing the ideol-
ogy, there is no practice. People have lost
confidence in us, they are shattered. We are
not serious,” he told The Independent in an
interview. “We need to review the system.
Otherwise what constitutes NRM ideology
today is something hazy. It needs to be
resuscitated.”
Babu reminisced about his time as Resis-
tance Council (RC) chairman of Nakasero
Village in Kampala in 1988.
He described how the newly elected LCs
registered all people on the village, resolved
their grievances, provided security and
served as the platforms of the party ideology.
“Those days if you wanted to know
anything about the village, you could ask
the secretary, or the chairman. Right from
the grassroots, there was an ideological
foundation. Now they killed it and brought
Mayumba Kumi championed by crime pre-
venters”.
The Resistance Council, which later
became the Local Council (LC) was the foun-
dation of the NRM and it helped identify
leaders. Through the Councils, people were
elected at each level right from the villages
and it was not on partisan grounds.
“The party had a good ideology when
they had just captured power,” he said, “The
spirit we had at the time has been killed both
through legal and other means.”
The Makerere University Kampala politi-
cal historian, Mwambutsya Ndebesa, says by
the government not conducting according
to him the biggest political event of elect-
ing local council representatives for more
than 15 years means NRM has scored a zero
on popular democracy. He said this is an
important office as it’s where popular justice
is delivered.
“The NRM has failed on upholding
democracy, a promise they campaigned on
while ascending to power,” he says.
Regarding representative, Mwambutsya
says the elections; even at the parliamentary
and presidential level, have become a ritual
held under controversy and marred by rig-
ging.
“In his own party, Museveni has failed
anybody who tries to stand against him. He
looks at himself as the only one capable of
leading this country,” Mwambutsya says.
As an example, he points at the way
Museveni’s former confidant and NRM
party secretary General and Prime Minister
Amama Mbabazi was kicked out when he
expressed interests in running as a party flag
bearer in the 2016 general elections.
As a result, Mwambutsya says, whoever
comes up is either despised as a joker or mis-
treated. He cites a recent move by Workers’
MP Sam Lyomoki who announced that he
would stand for presidency, and the news
was portrayed as some kind of comedy.
news analysis
NRM party in panic?
Lyomoki on Jan. 05 said he and others
had agreed that this is the time for new
Movement leaders to stand and offer cred-
ible leadership for the country. He also
proposed to Parliament to discuss how to
handle the post-Museveni era, taking into
consideration possible immunities and
emoluments Museveni could be offered
once he was out of power.
The increasing repression of dissenting
voices, according to Mwambutsya, is a sign
of panic not strength, within the ruling
clique. He says the NRM Day this year “will
be remembered as one that happened when
the party was in panic mode after passing
largely unpopular laws so they can consoli-
date themselves in power”.
“Museveni is panicking and aware that
his party has lost popularity; that’s why he
has chosen to fuse the army in all key instal-
lations. It happens at the time when they
have a lot of explanations to make. Though
the economy is growing, many Ugandans
are still vulnerable,” he says.
He says the party has not addressed the
fundamentals.
“They came to fight for freedom but they
are now fighting freedom. People cannot
assemble any more. There is no Ugandan
bank to talk about,” he says.
According to him, 2017 was particularly
challenging for the NRM when members
publically showed they were against the
position of the party. He speaks of the 27
members who voted no to lifting of presi-
dential age limits and have now been sum-
moned by the party to explain why they
took that stance.
Mwambutsya warns that people’s resent-
ment is mounting as the NRM continue
making promises they cannot keep, starting
with the Prosperity-for-all pledge which
promised to improve incomes of ordinary
people through the number of interventions
but poverty has only been on an increase.
In fact, results of the most recent survey
done by Uganda Bureau of Statistics on
Jan.17 show the proportion of poor people
increased to 21.4% in 2016/2017 from 19.7%
in 2012/13.
However, party ideologues say their crit-
ics are mistaken.
“The party ideology hasn’t been watered
down,” Richard Todwong, the NRM Deputy
Secretary General, told The Independent,
“it is only that the 10 Point Programme that
they came with has been modified.” Then,
like Museveni, he reeled off the four core
pillars; Pan – Africanism, patriotism, social
economic transformation and democracy.
Todwong is one of the new NRM leaders
that the old-guard like Babu spoke about.
It’s not easy to see, however, whether he
is merely singing the party ideology or his
heart is in it.
Jan 26 - Feb 01, 2018 17
news analysis
Auditor General lists weak
government departments
Political will to do things is zero, says civil society
By Julius Businge
T
he 2017 Auditor General’s (AG)
report is out. And its findings
and recommendations for the
year ended June 30, 2017 expose
weaknesses in many government
departments.
Uganda Revenue Authority, the
National Agricultural Advisory
Services (NAADS), Ministry of Finance,
Ministry of Public Service, Ministry of
Lands, public universities, the Uganda
Electricity Generation Company Ltd
(UEGCL), district local governments and
more are mentioned.
The weaknesses noted include
corruption, poor planning, and poor
budget performance, failure to hit
targets, unapproved expenditure, and
more.
The cases listed have caused problems
like low absorption capacity of funds,
poor accountability, poor corporate
governance, low tax remittances,
increasing domestic arrears, offering
wrong investment incentives, staff
shortage in government and more.
Following the release of the report,
the Parliamentary Accounts Committee
(PAC) plans to start conducting hearings
on the AG report next month.
Coming at a time when the budget
making cycle has just turned a mid-cycle
corner, there are also questions about
whether the AG’s recommendations on
the listed weak government departments
can be fixed in the 2018/19 budget.
Part of the fear is that similar issues
keep recurring annually in the AG
reports and are not addressed, leading
some expert observers to cast doubt on
the government’s commitment to fix
them.
Take the case of the upward trend
curve for domestic arrears – the money
that the government has failed to pay
to businesses that supplied it goods
and services, civil servants who have
retired and are not getting their pensions
and those in service but not earning
salary, and of complainants against
the government who have won court
awards.
The AG notes that in just three
18 Jan 26 - Feb 01, 2018
John muwanga
NAADS (corruption),
Ministry of Finance (domestic
arrears, funding shortages)
Public universities (unapproved
salaries)
Local governments (low absorption),
URA (tax exemption follow-up, low
targets, missed royalties gold)
Ministry of Lands, Housing and Urban
Development (land registration)
Youth Livelihood Programme (
Shs150 billion funding gap)
Public service (staffing gaps)
UEGCL (dams supervision)
years, the unpaid arrears have swollen
from Shs1.3 trillion in 2014/15 to Shs2.2
trillion in 2015/16 and Shs2.9trillion in
2016/17. The AG says the situation is
getting beyond manageable levels.
For example, although the domestic
arrears were at Shs2.7trillion at the time
the 2017/18 budget was drawn up, the
government only allocates Shs300 billion
to service the debt. That meant that
Shs2.4trillion or 90% of domestic arrears
were rolled over to the next year and
new debt piled on.
But the AG notes another problem.
About Shs1.1 trillion or about 50% of
the debts were not got through proper
channels. Many were got outside
the budget approved by Parliament.
Cumulatively, over Shs81 billion was
acquired in this way. In some case,
government departments, such as public
universities, increase the salaries of
their staff without matching resources.
The AG says this happens because of
weak and ineffective control systems
at the Ministry of Finance, including
early closure of the Integrated Finance
Management System (IFMS).
However, even after the ministries,
departments, and agencies (MDAs) incur
the debts, the government sometimes
does not make any effort to pay it –
leading to unsustainable increase in
arrears.
The AG notes that in FY2016/17, there
was no budget provision for paying
Shs87 billion arrears. The AG warns that
failure to budget could lead to diversion
of funds from service provision to
settling debt.
The AG says failure by the Ministry
of Finance Planning and Economic
Development (MoFPED) to release
money as planned has led to poor service
delivery. Up to 38 entities which had a
total approved budget of Shs3.9 trillion,
only got Shs 3.4 trillion. Generally, out
of the planned expenditure of Shs19.5
trillion, only Shs17.6 trillion was
released.
Tax issues
The AG notes that the Uganda
Revenue Authority (URA) is performing
quite well and collecting up to 96% of

planned tax revenue and non-tax revenue
(NTR) in the period under review.
But the AG says this is possibly
because URA has very low targets;
especially regarding NTR which more
than doubled the set target.
The AG is also concerned about tax
exemptions offered to investors. The
report notes that there are no clear
guidelines on why some investors get
exemptions and others are denied,
especially within the same investment
sector.
The AG also notes that there is no
follow-up to assess whether investors
create the jobs and economic benefits
they claim the tax holiday would enable
them to.
Instead, the AG warns, tax exemptions
might lead to industrial distortions or
even encourage unscrupulous companies
to close shop at the expiry of the tax
holiday and register new investments for
consideration for fresh tax exemption.
The AG says during the financial year,
the country lost revenue ranging from
US$3.39 million to US$ 16.95 million
in royalties from the undeclared gold
exports and imports- the second year
in a row it happens. Now the AG wants
government to expedite recovery of the
prescribed royalties.
Project management
The AG notes that the government
needs to supervise contractors to avoid
wastage of funds. The report notes the
case of Shs6billion that was borrowed for
construction of 14 bridges in Northern
Uganda but was not used and was
instead returned to the lender – Islamic
Development Bank.
The report also reported that NAADS
Civil society reacts to auditor general’s report
Ugandans need to politically punish
people they vote into power and they fail
to deliver to them the required services.
That is the view of Sebastiano
Rwengabo, a research fellow at The
Advocates Coalition for Development
and Environment (ACODE) while
commenting on weaknesses in service
delivery as noted in the recently released
report for the year ending June 30, 2017.
Rwengoba told The Independent
that every financial year the AG notes
irregularities in all sectors but the
government has failed to fix them.
“Uganda has reached a point where the
political will to do things is zero,” he said,
“but the technical will is there,” he added.
For higher offices, like the Presidency,
he said that it takes the will of the
President himself and those around him to
do things differently and in the right way.
“If political leaders don’t have that we
paid Shs1.4trillion to two lead agencies
in the districts of Kisoro and Kanungu
to provide extension services to farmers
but all the farmers interviewed indicated
that no extension services were provided
during the planning period.
The AG advises Uganda Electricity
Generation Company Limited (UEGCL)
to closely monitor and supervise the
works on the 183MW Isimba dam after
it emerged that the dam’s supervisors
were not doing a good job. He said that
failure to tame anomalies may lead to
high maintenance costs for the projects.
He also advised management of UEGCL
to enforce compliance to the Concession
and Assignment Agreement (CAA)
for Nalubale and Kiira Hydro Power
Complex which had non-repair works
at two turbines, ASR cracks on Nalubale
dam and the Power house.
Public service staff
The AG also noted and advised
on a review of the approved staffing
structures of seven government entities
where he found a total of 38,572 vacant
posts. These included key staffing
posts like Deputy Solicitor General,
Director Civil Litigation, Principal State
Attorney in the Ministry of Justice and
Constitutional Affairs. The biggest
shortfall in the staffing out of the seven
entities was in the Uganda Police Force
(UPF) with a staff shortage of 28,791.
Standard Gauge Railway
On the construction of the Standard
Gauge Railway, the AG noted that
government should ensure that the land
acquisition process – which had delayed
by the time of compiling the report – is
expedited so as to enhance progress
are in trouble,” he said.
Rwengabo said that there is need
to enforce the standards and legal
framework for government services to
yield results.
Rwengabo was particularly concerned
about land, and said that Civil Society
needs to come out strongly and advocate
for fair laws and policies on land.
Jane Nalunga, the country director for
Southern and Eastern African Trade,
Information and Negotiations Institute
(SEATINI), was concerned about the lack
of policy for tax incentives. She told The
Independent that the government needs to
penalise investors who breach contracts
they sign with government at the time of
getting an incentive. She said carefully
thought about incentives – tax, land, credit
and more – have capacity to attract foreign
direct investment and boost economic
growth
news analysis
of the project in line with the regional
partners.
He also noted that 51 entities with a
budget of Shs 4.4 trillion did not have
strategic plans and so it was difficult to
assess their performance. He said that
must be fixed.
Ministry of Lands
The AG also noted that the Ministry of
Lands, Housing and Urban Development
had a number of weaknesses that require
redress and these include; delays in
processing land registration documents
ranging from 13 to 134 days contrary to
the prescribed period of two to 20 days,
low level of registration of land which
is as low as 5% in rural areas, delay in
completion of revision of land policies,
laws and regulations and more.
Youth Livelihood Programme
He also reported that the Youth
Livelihood Programme (YLP) had
recorded a Shs150 billion funding gap,
representing 56.7%. He warned that
inadequate funding of the programme
may constrain the achievement of the
intended programme objectives of
improving livelihoods of the poor and
unemployed youth.
Improvements made
Commenting on the AG report, Henry
Musasizi, the MP for Rubanda County
East who has been a member of Public
Accounts Committee (PAC) for seven
years, described the 2017 AG report as
“not worrying”. He said there has, in
fact, been a general improvement in
adherence to laws and policies. He cited
an increase in the number of entities
now producing financial reports and
government programs that are being
implemented in line with the National
Development Plan (NDP).
Musasizi attributed the poor
performance of some sectors of
government to lazy public servants
who do not want to put in extra work to
deliver “surplus” results. He also blamed
it [poor performance] on poor planning
and prioritisation.
He supported the AG’s
recommendations on widening the tax
base to collect more revenue, ensuring
value for money for the YLP and
Operation Wealth Creation (OWC).
He said the AG also needs to
tailor their report to target outcomes
by government agencies to ensure
compliance and value for money.
“It is high time government
started implementing the AG’s
recommendations without even
waiting for PAC to push for them,”
Musasizi said .
Jan 26 - Feb 01, 2018 19
NEWS ANALYSIS
President Museveni at the judges conference on Jan. 22 at Speke Resort Munyonyo.  COURTESY PHOTO
Museveni and the death penalty
President says it’s his way of dealing with the
rampant killings happening in the country
By Ian Katusiime
P
resident Yoweri Museveni has re-
peated his determination to sign
death warrants for those who com-
mit offences like murder. He says it
is his way of dealing with the rampant kill-
ings happening in the country.
While addressing the 20th Annual Judges
Conference at Speke Resort Munyonyo on
Jan.22, Museveni regretted not signing the
death warrants over the years for convicts of
murder.
“For us we believe in the old law of Moses
of an eye for an eye, and a tooth for a tooth,”
he said, “I will support the death penalty
until I retire from leadership.”
This was the second time Museveni was
citing the death penalty after he said those
who kill should be hanged during a commis-
sioning ceremony for prison warders a few
days ago.
The judges’ conference which ran from
Jan.22- 25 was held under the theme ‘An
inclusive judiciary for sustainable develop-
ment’ and was attended by judges, magis-
trates, registrars and officials of Evolve; an
organisation of lawyers based in the U.K.
Museveni also said he was disappointed
by the sentence of eight months handed out
by City Hall Court to six butchers found
guilty of using chemicals to preserve meat
and fish.
“How do you hand out eight months?
People who use formalin to preserve meat,
those ones deserve twenty years,” he said.
The President also rejected calls for
appointment of more judges and their
demands for higher pay and retirement
benefits saying Uganda was still a recovering
society unable to take care of all the demands
of civil servants. “How do you fund institu-
tions in a post recovery phase of a formerly
failed state?”
20 Jan 26 - Feb 01, 2018
He said the country had other competing
needs and added it was a deliberate policy
for Uganda to prioritise road infrastructure
where the Works sector gets Shs4 trillion and
the Judiciary Shs134 billion per annum.
Museveni told the judiciary to address the
problem of wastage in its sector and that in
the wider government manifested in con-
stant travel on so-called benchmarking trips.
Judges’ demands
The Chief Justice Bart Katureebe laid out
a list of demands he said were vital for the
judiciary to effectively perform its duties.
Katureebe said the judiciary needed 532
Grade 1 Magistrates but only 192 are avail-
able and 100 Chief Magistrates yet only 42
are present. He said the country needed 82
High Court judges yet there are only 50 and
also said that Court of Appeal judges needed
to be doubled from the current number of 14.
Katureebe also reminded the president
about the promises he made to judicial
officers in September 2015 that remain unful-
filled. These include retirement benefits for
judicial offers, houses for judicial officers,
vehicles for magistrates handling land dis-
putes, and Shs10 billion for the Uganda Judi-
cial Officers SACCO.
The chief justice called for the reinstate-
ment of Local Council Courts which he said
provide justice for rural communities. “LC
Courts will shoulder the millions of unmet
needs. If this institution is reintroduced, it
will help a great deal in solving cases in vil-
lages because there are fewer negative emo-
tions involved.”
The head of the judiciary lamented the
perennial problem of case backlog that is
most common in land, family and criminal
cases. “An average land case takes 15 months
to resolve”. However, Katureebe noted that
the judiciary had made some strides with the
automation of courts, introduction of small
claims procedure, plea bargaining; the lat-
ter two which have lessened congestion in
detention centres.
Magistrates cry out
Godfrey Kaweesa, the Chief Magistrate
of Iganga and president of Uganda Judicial
Officers Association told The Independent that
Iganga currently has no resident judge yet it
has a High Court circuit and therefore judges
have to come from Jinja to handle cases.
“When the judge comes, he has to sit in the
chambers of the chief magistrate and the
chief magistrate sits in the library.”
Kaweesa also lamented a discrepancy
between the welfare of judges and magis-
trates even though the entire judiciary is
grappling for more resources altogether.
He says after the Penal Code Amend-
ment Act in 2009 and the Magistrates Courts
Amendment Act, the jurisdiction of the chief
magistrates were enhanced but it is yet to
be translated into practice because it did not
come with a budget. Under the State Brief
funds, chief magistrates handle semi-per-
manent cases like defilement, arson where
maximum sentence is life imprisonment. “In
this arrangement, accused persons must be
represented by the state yet money under
State Briefs is so limited and the sessions
have 40 cases per month”.
He says lawyers are shunning the chief
magistrate’s court to represent accused
persons in this scenario and subsequently
suspects are languishing in jail. “There is
only Shs1 million per month for all cases, yet
the judges were getting Shs40 million for the
cases; this is form of a discrimination”.
He also said the judges are more privi-
leged through benefits like security and yet
magistrates dispose of 80% of judiciary work
but with a much smaller budget.

Volkswagen in Rwanda
German carmaker eyes nation’s e-mobility
By Agencies
I
f everything goes according to plan, the
first car “made in Rwanda” could be on
the streets as early as May, according
to the German automobile giant. After
South Africa, Nigeria and Kenya, Rwanda
is the fourth African country in which VW
has invested.
“I think we have come to the right place,”
said Thomas Schäfer, managing director
of VW in South Africa. “The attention,
the focus and the will is here to imple-
ment this.” Moreover, Schäfer said, he was
impressed by the support from Rwanda’s
government right from the signing of the
letter of intent in December 2016. He spoke
of the government’s anti-corruption drive
and Rwanda’s tech savvy younger popula-
tion. The investor-friendly climate is one of
the reasons why Rwanda is often treated as
a “darling of the West,” despite its demo-
cratic deficits.
The future is electric
As with the Kenyan plant which was
opened in late 2016, VW only plans to
assemble the cars in Rwanda. The parts will
be imported from a manufacturing plant in
South Africa. In the first production phase,
which will last approximately one year, VW
hopes to assemble 1,000 cars, which will
include the Polo, Passat and SUV models.
The automaker plans to create between
500 and 1,000 jobs and it says that it will
invest $20 million (€16 million). For Rwan-
da, this is an important move.
“Volkswagen’s investment that they
just announced is extremely important for
Rwanda,” said Clare Akamanzi, CEO of the
state-run Rwanda Development Board. “It
demonstrates that a global company like
VW can find a vital business in Rwanda.
One; that they can begin to assemble motor
vehicles in Rwanda, which is something
that has not been done in Rwanda before.
And secondly that it can actually help to
solve a transport problem in our country.”
Indeed, VW does not just plan to sell cars
in Rwanda, it also wants to sell mobility.
The plans are part of what is being called
the Volkswagen Integrated Automotive
Mobility Solution in Rwanda by Volkswa-
gen Group South Africa.
Schäfer knows that only a small section
of the population will actually be able to
afford new cars. And so he plans to intro-
duce car sharing and renting vehicles in the
capital Kigali – all of which will, of course,
be organised via an app and smartphone.
A Rwandan software development start-
up company Awesomity Lab has been
appointed to develop the mobility App.
If everything runs as planned, Rwanda
will also soon witness the introduction of
the first electric cars on its roads. “In devel-
oping countries like Rwanda, we often
skip development steps,” Schäfer said.
“We’ll start with what we have already
announced. But of course we’re already
looking at the next phase and I think that
this should be easy to implement in a
country like Rwanda and a city like Kigali.”
Rwanda has a good network of roads and,
due to its small size, setting up charging
stations across the country should not be a
problem.
Rwanda seems very open to Schäfer’s
ideas. The country aims to become a lead-
ing example of environmental protection
and sustainability on the continent. Electric
cars fit well in this plan.
Young, tech savvy and easy to do busi-
ness with, that’s how investors view
Rwanda
Cobalt is the key
Electric cars also mark a major change
within VW itself. The carmaker plans to
invest 34 billion euros in the development
of electric cars in the next five years. It hopes
to become the leading electric car maker by
2025.
To achieve this, the company needs one
major component: cobalt. And the biggest
reserves of the rare metal can be found in
Rwanda’s neighbor, the Democratic Repub-
RWANDA
lic of Congo (DRC), which produces 60
percent of the world’s cobalt.
In 2016, car makers felt the squeeze after
Amnesty International visited mines in
DRC and came back with alarming reports.
“The miners are extracting cobalt using
very rudimentary hand tools and no protec-
tion. The pits they dig are often deeper than
the 30 meters (3.2 feet) legally stipulated.
They could go to 60 or 70 meters. They have
no supports. These people are working
in really dangerous conditions where pit
collapses and deaths is a common,” said
Amnesty’s Lauren Armistead.
The batteries for electric car require much
more cobalt than, for instance, smartphones.
For Armistead, this means a leading car-
maker like Volkswagen should take respon-
sibility for this. “If they want to become the
major player in e-vehicle production, they
need to position themselves as a leader in
terms of their cobalt sourcing practices,” she
says. “It is really paramount that the electric
vehicle revolution is not built of the backs of
children and adults in hazardous conditions
in the DRC,” she added.
While it might still be a while before
electric cars hit the streets of Rwanda,
cobalt is already a central component
for VW’s future plans. Schäfer, however,
denies that the company’s investment
in Rwanda has anything to do with its
proximity to the DRC.
Source: DWD
Jan 26 - Feb 01, 2018 21
INTERVIEW

`We demand explanations

about illegal and unjust arrests
of Rwandans in Uganda’
Maj. Gen. (Rtd) Frank Mugambage is Rwanda’s ambassador
to Uganda. He spoke to The Independent’s Ronald Musoke on
a range of bilateral issues between Rwanda and Uganda.

How would you describe the current rela- taincy of Military Intelligence (CMI).  People towards building strong relations with

B
tions between Uganda and Rwanda? are held there and I am sure you have learnt Uganda alone—its immediate neighbour.
ilateral relations (between states) that some of them have since been extra- I think Rwanda is fully committed to the
usually look at a very broad range dited with all sorts of stories talking about whole idea of the East African Community
of issues and these take into con- how they were harassed and tortured. But integration or even African integration. But
sideration building of cooperative all this has been happening outside the like I said, to be sure that that works, you
arrangements in diverse spheres. When formal arrangements that were put in place also have to come out and talk about what
you are doing that even with neighbouring to deal with issues like this. And like I said might undermine those positive
states, you should give it the consideration earlier on, in our effort to build relations, we efforts of building
that there are historical relations involving demand explanations so that these issues relations.
people and the conduct of these relations do not interfere with the positive things
are done in a certain way. That is why we that we are doing together.
are here and that is why Uganda has an
embassy in Kigali. For all those relations to So, if I may ask again, what do
be built and maintained, a lot of work has you think about the current
to be put in. One of the areas that have to relations between the two
be taken care of is the fact that we always countries?
point out what is working well and what I have told you that the
is not; what is going right and what’s go- conduct and the building of
ing wrong. There is no doubt that over the relations between states is
years, Rwanda and Uganda have devel- something that is not built
oped those mechanisms to deal with those on a spark. I have told you
challenges. We have a memorandum of that it is a broad reality.
understanding in different sectors includ- Rwanda and Uganda will
ing; trade, security, education where our be here; Rwanda and Ugan-
people work together. We even have a da are going to be neighbours
framework—the Joint Permanent Commis- and Rwanda and Uganda
sion—which is headed by the two states’ have a long term relationship.
ministries of foreign affairs. These are sup- Rwanda by the way is not
posed to meet regularly and make sure the talking about
different sectors keep in touch and work for working
the mutual benefit of the people in the two
countries. So (when) you raise issues that
you say have been in the media; these are
happening in Uganda, they didn’t happen
in Rwanda. These are issues that involve
the illegal and unjust arrests of Rwan-
dans in this country. We have come to
learn about the people who get arrested
through very illegal processes, taken to
places that even their families don’t
know; and there is no communication
between the two states. We only dis-
cover that those behind the arrests
are agents of the Ugandan state
because we find information from
those arrested that they have been
held by institutions of the Ugan-
dan state—particularly the Chief-

22 Jan 26 - Feb 01, 2018


As Rwanda’s High Commissioner to
Uganda, how have you been dealing with
these tensions?
We have been engaging the Ministry of
Foreign Affairs which is our direct collabo-
rator in Uganda. But we have also engaged
with people at different levels including
the institutions that are mentioned in these
cases, CMI and everybody. This informa-
tion has been shared and we are trying to
follow up.
There have been reports here that some
Rwandans with refugee status have been
involved in subversive activities back
home.  What is the truth about these re-
ports?
Well, there are elements of dissidents
who try to organise themselves with the
intention of trying to do something against
the government and people of Rwanda. We
have learned that there are elements work-
ing with enemies of the government and
people of Rwanda, especially those who
work with the dissident groups, people
who ran away from accountability and
other wrong reasons; they formed terrorist
organizations like the Rwanda National
Congress (RNC) headed by somebody who
used to be in the government of Rwanda.  integration projects?
In fact, sometime back the same terrorist
organization (RNC) threw grenades in
Kigali and killed innocent people.That is
not to say that these constitute (a threat) to
Rwanda because Rwanda is a country that
is sovereign and is capable of guaranteeing
its national security. But that does not give
leeway to people to have a haven where dis-
sidents can come and recruit with the inten-
tion of training and conducting terrorism.
This is something that must not be allowed
to happen; certainly not by a friendly coun-
try, and not by a neighbour. I can assure
you that Rwanda will never allow that kind
of thing to happen.
Rwandan security officials, at least going
by media reports, have been abducting
some Rwandan nationals and forcefully
repatriating them to Rwanda, acts which
contravene international law. What ex-
plains this sort of action from the Rwan-
dan government?
The question we have asked and we will
continue to ask is, why wouldn’t anybody
say, let’s find that person (arresting people)?
Why wouldn’t people look for those so-
called agents and bring them over and say
look, this one is so and he has done this and
that.  It is one thing to claim something, and
another to prove.  I mean let’s be factual. I
can tell you that there is no such a thing that
has happened. Whoever is talking about it
is may be creating a situation where they
can now react by doing the kind of things
they are doing. Can we name cases of who
has been taken, by who and when? This is
what should be happening. I know there is
one case that has been mentioned; the case
of a one (Joel) Mutabazi who came here as
a dissident but had case files in Rwanda.
His case was handled through the channels
I talked about earlier on. His going back
was something that was done under the
understanding of the two countries with
the involvement of the international legal
framework because he had cases to answer.
That happened in 2013. So why should it be
coming back now to even allege that it was
a kidnap? We have even shown it that, yes it
was done but it was done through the legal
channels and he went through the Rwan-
dan channels and he answered his charges
and the Rwandan courts handled him. So
we cannot base on that to make a general
claim that people are here. Look for them,
get them and bring them over.
Since 2011, Presidents Yoweri Museveni
and Paul Kagame have worked together to
fast-track some of the East African Com-
munity’s flagship projects such as the
Standard Gauge Railway, the East African
Tourism Visa and the national ID for trav-
el across the region. Do you think the cur-
rent tensions between the two states might
have a setback on some of these regional
You are making reference to the initia-
tive by our heads of state (Kenya, Uganda
and Rwanda) on what was referred to as
the (northern corridor projects). This was
an initiative out of the realisation that coun-
tries of this region needed to work on the
infrastructure that would help us mutually
benefit from the development process that
we are all involved in. You did mention the
free movement of people so that citizens of
these countries can move without necessar-
ily having passports—this has been accom-
plished. We have other achievements like
removing barriers along the trade routes.
Remember that, for example, goods used
to take very many weeks from Mombasa
to get to Kampala and Kigali. That was
reduced to, I think, six days. They were
talking about internet connectivity (optic
fibre connectivity) and sharing some of the
resources such as electricity. So some things
have been accomplished while others are
still on the way. There is always need to
fast-track them; especially for those projects
that greatly benefit all of us.  But one can-
not say that that initiative has stopped, no it
hasn’t. And we need to continue to engage
and see how it goes.
We recently saw Uganda’s Foreign Minis-
ter, Sam Kuteesa, travel to Kigali to meet
the Rwandan president. Is this one of the
signs of a return to normal relations be-
tween the two states?
I did not attend the meeting myself but
the Rwandan Foreign Affairs ministerstated
that the president of the Republic of Rwan-
dareceived Sam Kutesa, Uganda’s Foreign
INTERVIEW
Affairs minister with a message from
President Museveni and they had a good
discussion mainly on integration. President
Kagame stressed that for integration to be
successful, there has to be something for
everybody— all partners must win. They
further had discussions linked to the state of
bilateral relations, including the continuing
arrests and disappearance of Rwandan citi-
zens in Uganda which are causing tension
and many Rwandan families to petition
their government to intervene on behalf of
their loved ones.
What’s your reaction to the issue of the
Rwandan refugees currently living in
Uganda who we are meant to understand
will be repatriated to Rwanda very soon
after Rwanda invoked the UNHCR’s ces-
sation clause?
The cessation clause is under the UN sys-
tem which means that people who have left
their country to seek refuge (elsewhere) can
return home once the conditions that made
them flee are no longer there.  In the case of
the UNHCR, it stops extending assistance
to these people because it has no basis and
for the case of Rwanda, that process has
been examined for those people who left
between 1959 and 1998. It is the UNHCR
that came to the conclusion that, yes, we
think Rwandans should not have refugee
status because the conditions that existed at
the time no longer exist and there is no justi-
fication for them to continue being refugees.
That is when the UNHCR set the date for
the application of the cessation clause. That
cessation clause came into effect on 1 Janu-
ary 2018.  In other words, for the Rwandan
refugees who left Rwanda in 1959 and 1998,
there is no justification for them to be con-
sidered refugees anymore and the UNHCR
will withdraw its support. But what hap-
pens is that the host country could consider
it appropriate to give these people perma-
nent residence or citizenship.  Those are all
considerations. But the bigger issue is that
Rwanda accepts and Rwanda has always
been open and we have had very many
former refugees returning. So, the doors are
open and the facilitation is there for those
who might want to come back home.
Your last word?
It is extremely important to emphasize
the fact that Rwanda is very committed to
building and reinforcing mutually benefi-
cial relations in the neighbourhood. You
are aware that in fact His Excellency our
president has been given the responsibility
to head the African Reform Agenda and this
year, Rwanda is also taking on the Chair
of the African Union. We are all for unity
and solidarity, not only here but beyond.
So anything that undermines that is some-
thing we take seriously and should not be
allowed to happen
Jan 26 - Feb 01, 2018 23
Will Uganda’s bank for
cooperatives be a reality?
Cooperative banks worldwide were
financed by cooperatives societies
F
By Isaac Khisa
or some time now, Uganda’s
cooperatives societies have ex-
pressed the need to re-establish
the Cooperative Bank as their
main source of capital for pro-
duction, processing, diversifica-
tion and value addition.
Whereas they seem to have made a reso-
lution to start the process of re-establishing
the bank that collapsed nearly two decades
ago to serve the interest of their members,
the question that lingers among stakehold-
ers is how the proposed lender will be
financed.
Ivan Asiimwe, the Secretary General of
the Uganda Cooperative Alliance Ltd, said
during the one –day national dialogue to
members of cooperative societies and other
stakeholders at Grand Imperial Hotel that
they are looking at four financing options to
re-establish the bank.
These include; purchase of shares by
cooperatives, a joint venture between
cooperatives and a strategic investor, a
joint venture between government and
strategic investor, with the government
offloading shares to cooperatives directly
at a later stage or government financing the
proposed lender and gradually selling its
shares to the public through the Initial Pub-
lic Offerings on the stock market.
However, he was quick to point out
that while the government can utilise
some of the funds meant for the Uganda
Development Bank (UDB) to capitalise the
Cooperative Bank, a financial institution
dependent on government might face high
portfolio risk, sustainability issues and sus-
ceptible to unhelpful political influences.
“Of particular concern is high risk
of default on loans and favouritism in
recruitment of staff when government is
involved,” he said.
He said it is time for the country’s coop-
erative societies to choose a financial model
for the proposed commercial bank.
None of the senior government officials
24 Jan 26 - Feb 01, 2018
Ivan Asiimwe,
Fred Muhumuza
from the ministries of finance, trade and
Bank of Uganda were present to respond
to the proposed plan even when they were
invited and time allocated to present their
views.
According to Bank of Uganda (BoU),
the core capital to start a commercial bank
in the country stands at Shs25bn. This
excludes costs with regard to setting up
branches, technology and salaries.
The cooperative societies’ move to re-
establish the Cooperative Bank is based on
fact that whereas the government initiated
various interventions to extend financial
services through Savings and Credit Coop-
erative Societies and the Micro Finance
Support Centre following the closure of the
lender in 1999, there still remains serious
gaps in agricultural lending – insufficient
funds, high interests rates and loan prod-
ucts not aligned to the peculiar needs.
The cooperative societies argue that the
current credit arrangement by the country’s
24 commercial banks do not favour rural
communities, farmers, most Small and
Medium Enterprises due to high interest
rates but also due to risks involved in the
production and value chains of the different
products.
As a consequence, the cooperatives and
SMEs, say they have failed to reach their
full potential due to limited access to finan-
cial services.
“We believe that the re-establishment
of this bank will deepen financial services,
improve financial inclusion, generate rev-
enue for cooperatives, enhance savings
and increase ownership of the economy
by Ugandans hence helping society for
economic transformation and relieve the
economy,” he said.
Fred Muhumuza, a development econo-
mist and former advisor to the Minister of
Finance, however, said the options of a
government partnering with the strategic
investor and the government financing the
bank wholly and later offloading shares to
the cooperative societies is impractical.
“This government has its own child and
for years it has failed to capitalize it’” he
said, in reference to Uganda Development
Bank.
The government has in the past three
consecutive budgets promised to inject
huge capital into UDB but nothing has
happened, and thus limiting its ability to
extend long terms credit facilities to the
population.

Muhumuza said the national budget
is already overstrained and heavily con-
strained and that this makes it impossible
for the government to take on more respon-
sibilities that require capital.
He recommends that cooperative societies
buy shares in the planned bank for owner-
ship and membership as they seek for a
strategic investor with the government as a
guarantor to mobilise more capital.
“It is at this stage that we shall need gov-
ernment not to bring in money but provide
guarantee to this new investor,” he said.
Yasin Nnume, the Chairman Board of
Uganda Cooperative Savings and Credit Union
Ltd agrees with Muhumuza’s views. He sug-
gests that the country’s 18,000 cooperatives
societies buy shares in the bank even as it
strives to look for a strategic investor within
or outside the country.
“We saw this long time ago,” he said.
“For instance, when we wanted to open up
an insurance company, we partnered with
Cooperative Insurance Company of Kenya.”
He says the cooperative societies in the
country only need to come up with a com-
mittee to carry out the feasibility studies,
analyse the financing modalities and look
for a strategic investor as it was the case with
the establishing of an insurance company.
Uganda Cooperative Savings and Credit
Union Ltd (UCSCUL) and the Uganda
Cooperative Alliance Ltd partnered with the
CIC Insurance Kenya in 2015.
UCSCUL and UCAL own 51% of the
business while CIC Africa, the parent com-
pany of CIC Insurance Kenya, owns the
remaining shares.
This new development comes at the time
when cooperative societies in Tanzania
and Rwanda are also laying down strate-
gies to unveil cooperative banks. Tanzania
Federation of Cooperatives revealed end of
last year that they are seeking Tshs 22bn to
establish a cooperative bank.
TFC Executive Secretary, Willigis Mbo-
goro, said the lender to be known as Tan-
zania Cooperative Bank was mobilising the
funds from its 37 cooperative unions and
individual members to raise the funds. This
will follow Kilimanjaro Cooperative Bank
Ltd that was established in 1996, serving the
country’s Kilimanjaro region.
Rwanda plans to do the same soon after
President Paul Kageme ordered the Trade
and Industry Minister in 2014 to establish a
cooperative bank to be known as Rwanda
Cooperative Bank.
Research carried out by The Independent in
the region and the globe indicates that coop-
erative banks were financed by cooperatives
societies and individuals.
For instance, in Kenya, the Cooperative
Bank of Kenya, which was initially a coop-
erative society in 1965, was granted a bank
licence in 1968. This was followed up by a
directive from the government instructing
all cooperative societies in the country to
transfer their deposits to the Cooperative
Bank of Kenya and that all cooperatives
buy the bank’s shares. It was until 1989 that
the established bank converted to a fully-
fledged commercial bank and increased its
products menu.
In Ethiopia, the Cooperative Bank of Oro-
mia, registered in 2004, is fully owned by the
cooperative societies, individuals, organisa-
tions and associations.
Cooperative banks elsewhere
In Europe, savings and cooperative banks
started as far as 19th century after communi-
ties especially farmers failed to secure capi-
tal from conventional banks.
And since then, some of the cooperative
banks have been able to prosper and at
times even outperform the commercial and
purely shareholder oriented banks.
For instance, in Austria, savings and
cooperative banks’ total assets, loans and
deposits stand at around 50% in terms of
market share of the entire banking industry,
according to a paper presented at Goethe
University, Frankfurt, Germany in 2013
dubbed ‘Savings Banks and Cooperative
Banks in Europe.’
The paper co-authored by Dilek Bulbul
says there are two groups of cooperative
banks in Austria, the larger group of Raif-
feisen banks operating mainly in rural areas
and the smaller Österreichische Volksban-
ken-Gruppe (ÖVB group) with an urban
business focus.
In France, Banques Populaires Caisses
d’Épargne (BPCE) Group is owned by
nine million cooperative shareholders, and
serving more than 31.2million customers
while Crédit Mutuel (CM), with 7.4million
customers, is owned by association of coop-
eratives. Similarly, Crédit Agricole (CA),
sometimes called the “Green Bank” because
of its historical ties to farming, consists of 39
cooperatives and small banks.
“Together they hold market shares of
nearly half of total banking assets, loans to
households and businesses and customer
deposits,” the paper says in part.
In Spain, the savings and cooperative
banks are said have had an impressive and
growing market share of around 50 % and
were so profitable and efficient that one
would not be able to see any difference
in their performance to the private banks
including the giant Spanish banks Santand-
er and BBVA.
However, cooperative banks have dis-
appeared in some parts of Europe. For
instance, in Great Britain, the former public
savings bank (TSB) was sold to Lloyds
Banking Group, and several cooperative
banks, the so-called building societies,
were converted into corporations and some
of them sold to large private commercial
banks.
Similarly in Netherlands, savings banks
have disappeared and the formerly inde-
business
pendent cooperative banks have been
amalgamated into one big national bank
– Rabobank. Rabobank is traditionally a
farmers’ bank and it still holds 85% - 90%
market share in the agrarian sector in the
Netherlands.
Lessons leant from the defunct Coop
Bank
Charles Kabuga, the former General
Secretary, UCA, said cooperatives need to
avoid past mistakes similar to those that
were made during the existence of the
defunct Cooperative Bank.
He pointed out inadequate capital for the
bank since it was established in 1964, poor
credit management, insider lending and
poor repayment culture as some of the rea-
sons that led to the collapse of Cooperative
Bank as a result of becoming insolvent.
“There were no credit manuals; credit
management was weak as there were no
approvals from the Board, no application
forms and no financial statements from
borrowers, lack of analysis, follow-up and
collection efforts,” he said adding, “As the
loan portfolio grew in mid 1991 given the
administered funds, the quality of loans did
not improve with 75% of the loan portfolio
being classified as Non-Performing Loans.”
What next?
Going forward, Stephen Mukitale, who
previously chaired the Parliamentary Com-
mittee on National Economy and now sits
on the National Budget Committee, said
there’s need for cooperative societies to
petition Parliament for the establishment of
Cooperative Bank.
He suggests that the money paid to the
Youth and Women through the Youth Live-
lihood Programme and Uganda Women
Entrepreneurship Programme can instead,
be directed towards establishment of the
bank for the benefit of the wider population.
Muhumuza suggests the cooperative
societies need to nurture and grow the asset
base of the Uganda Central Cooperative
Financial Services Ltd (UCCFS) and trans-
form it into a bank rather than starting a
new entity.
“Let’s find the capital that UCCFS will
be required to operate smoothly, because
it is already authorized to work anyway,”
he said, “Then as it grows, we shall have a
clear evidence, and we can apply to BoU to
become a bank. We already know what the
central bank needs.”
Started in 2008 as a financial services
provider for savings and credit cooperative
societies, UCCFS has nearly 400 coopera-
tives countrywide, with a Shs5bn capital.
Muhumuza said the proposed Coopera-
tive Bank should also not compete with the
UDB; instead should form a collaboration to
share risks and facilities.
Jan 26 - Feb 01, 2018 25
business

By Independent staff

D
espite increased allocations by
government, private players and
the donor community towards
Uganda’s agriculture financing,
the sector has remained underserved. A
2017 report by the Uganda Agribusiness
Alliance on agriculture financing notes that
whereas several government and donor
facilities have been established to provide
capital for agriculture enterprises, majority
of those who need the funds have not been
served.
The report found that agriculture remains
financially underserved due to low bank-
ability of the enterprises. This is majorly
caused by high real and perceived risk
levels, lack of business and investment pre-
paredness, which experts say is due to lack A farmer harvest coffee

of appropriate advisory services. 
The report notes that majority of agricul-
ture enterprises in Uganda lack capital at
the start up stage when it is most needed.
But all types of financiers including grant
making bodies, venture capital firms and
commercial banks are all eager to finance
agriculture enterprises that have taken off.
Most enterprises are reported to lack
capital in their first three years of establish-
ment when investment in things like green
houses, irrigation and storage infrastructure
are made. Even after these investments have
been made in there is still little interest from
lenders, until banking history, which can
take up to seven years has been established.
The report notes that most financiers
prefer to only fund business that are well
established.  This establishment can take up
to ten years.
In addition to the failure by financiers to
lend money to enterprises that need it, Fred
Muhumuza an independent researcher
with expertise in Development Economics
adds that the policy environment for the
demand and supply of agriculture financ-
ing is also poor.
Muhumuza cites the case of Bank of
Uganda which currently requires banking
institutions to provide for a default cost of
20 per cent of the loan, after 60 days of a
borrower not paying. This amount increases
to 30 per cent in the next and keeps increas-
ing until it reaches 100 per cent.
Muhumuza says that such a blanket
policy requirement disadvantages agricul-
ture enterprises, which employ majority of
Ugandans and whose products should be
designed according to seasons.
Seasons can be anywhere between four
months and a year, making it impossible
for enterprises making money out of agri-
culture to pay their loans within the Bank
of Uganda mandated period. This makes
lending to agriculture costly for licensed
financial institution.
Failing access to
agriculture funding
Agriculture finance remains low
As a result of all these problems, agricul-
ture financing has remained low, despite
several initiatives intended to change this
state of affairs.
Irene Sekamwa the Agrifinance Policy
advisor at the Netherlands Development
Agency (SNV) says that research done
between 2007 and 2015, found that agricul-
ture financing remained below 11 per cent
of the total private sector credit.
Although no research has been done on
this subject since, as Bank of Uganda prefers
to track credit to the private sector and the
government funded Agriculture Credit
Finance, experts say the proportion of agri-
culture financing can’t have changed much,
as it had started to decline by 2015.  ber enterprises in need of this money been
Poor financing is despite different invest-
ments in this area by both government and
the donor community, whose development
experts have over the years, bean looking to
increase capital to enterprises that employ a
majority of Ugandans.
Currently Uganda is spending money in
different financial institutions as a way to
increase agriculture production and agro-
processing. In the financial year 2018/2019,
Uganda will for instance Uganda allocate
Ush80 billion ($21.9 billion) to the develop-
ment banks. This is in addition to the Ush50
billion ($1.4 million) provided to Uganda
Development Bank for capitalisation.
According to the budget framework
paper, currently being discussed by parlia-
ment, the funding to the likes of the Uganda
Development Bank and East African Devel-
opment Bank is meant for capitalisation of
these financial institutions. With cheap capi-
tal from the development banks, Uganda is
supposed to register increased agriculture
production and agro processing leading to
enhancement of the population’s incomes. 
In addition to funding the development
banks, Keith Muhakanizi the permanent
secretary in the ministry of finance adds
that due to political pressure, there are
several other initiatives including the Agri-
culture Credit Facility (ACF), the northern
Uganda social action fund (NUSAF), the
women’s fund and youth fund, projects
through which government disperses bil-
lions of shillings for agriculture financing.
Through the ACF Uganda has so far
disbursed Ush141.1 billion ($38.6 million),
but would have spent more had the num-
more. Another Ush40.1 ($11 million) will be
disbursed in the current financial year for
the women’s fund. This is in addition to a
youth revolving fund worth Ush265 billion
($72.5 million), which has been temporarily
suspended due to high default rates. The
government also owns credit institutions
like the Microfinance Support Centre, Post
Bank and Pride Microfinance all of which
provide agriculture financing. 
Government’s efforts are supplemented
by the donor community, as several other
initiatives including the agricultural busi-
ness initiative (aBi) which is funded by sev-
eral European countries to provide capital
and advice to enterprises along the agricul-
ture value chain. Under a different initia-
tive the European Union working with the
National Social Security Fund and the Inter-
national Fund for agriculture established
$12 million fund for the same purpose. 

26 Jan 26 - Feb 01, 2018

Executive Style
Deiplaces boosts tourism marketing
What is your management
M
style as a manager?
anagement is a
very complex
task. However,
the easiest way
to go about it is to put God
fast, and the rest can always
follow. Secondly, I respect
colleagues. I lose nothing
when I listen, advise and
seek to be advised. I do not
take management decisions
by myself, we take decisions
as a unit. So we share the
developments as well as
the challenges at Dei Group
International which is the
parent company of Dei
Technologies International,
the “mother” of deiplaces.
Recently, you unveiled
a social media platform
known as Dei Places.
How does this platform
work? How different is it
compared with the usual
social media platforms?
To start with, the main
objective of the platform is
to advance Africa’s tourism
potential to the rest of the
world. There is so much
about Africa that is not
known, not even by us the
natives.
We focus on individuals,
organizations among other
entities sharing information
in text, pictures, videos and
audio about places. Places can
be a business, a tourism site
among other entities.
DeiPlaces gives the user
an opportunity to open up
a place, which is a page
within the platform. The
user can then post content
about anything they want to
promote in that place.
How can an individual join/
start using the platform?
There are two ways. One
can either visit the website
which is www.deiplaces.com
and sign up or download
the deiplaces app onto their
phones and sign up. The
process is easy and can take
one less than a minute.
What are the key drivers for
launching the platform in
Uganda?
Much as the platform is
being used internationally, its
core objective is to popularise
Africa’s potential to the rest of
the world. It is obviously true
that Africa’s annual tourists
are very low in number. Such
a situation is not a proper
representation of Africa’s
tourism potential. Marketing
Africa has been identified as
the major cause for the low
numbers and deiplaces is here
to close that gap.
What is your assessment of
social marketing in Uganda?
Uganda is one of the
fastest-growing countries in
internet penetration, which
stands at 13% as of August
2017. Many more people are
starting to appreciate this
wave. Over 95% of the people
who use internet are ardent
social media users.
Last year and now 2018,
Uganda has seen one of the
strongest digital waves ever
witnessed. Companies are
Magoola
Matthias, is the
CEO Dei Group
International,
the firm behind
social marketing
platform, Dei
places. He
spoke to The
Independent’s
Isaac Khisa
about social
marketing to
drive Uganda
and Africa’s
tourism potential.
now considering social media
much more than they used to.
As the wave continues
to take toll, people should
know that Dei Places has a
sieved audience for business
not the clattered space our
other colleagues provide. On
this note, we invite people
and companies to sign up to
Deiplaces create places and
start marketing.
If you say this platform is
here to help people market
places, how do you benefit
from the innovation?
Right now, we are focusing
on ensuring that all the
potential tourism sites on the
African continent are given
attention. We are focusing on
ensuring that the number of
tourists coming into Africa
multiplies. We are in times
where so many people do not
have jobs. And this is not only
here in Uganda but across
the globe. We want people
to market those places using
the platform market their
places to tourists. We want
them to market their business
for more clients, get more
Jan 26 - Feb 01, 2018
connections among so many
other things.
How will this platform
generate revenue?
The platform will be able
to make money through
its booking option where
people can book for hotels,
transport, tourism sites
among other facilities. Here,
different facilities will strike
deals with the platform
where they will both arrive
at a win win situation. So
far, a number of facilities
have already signed up and
people are already using
the option. However the
company is not charging for
it now and it’s not about to in
the nearest future.
Apart from this new
platform, what else do
you offer as Dei Group
International?
We are enthusiastic
innovators who have
introduced quite a number of
successful products. About
a year ago, we launched the
first-ever antimalarial drug
produced on the African
continent. The drug has been
appreciated not only here in
Africa but internationally.
We also have a Cross-mobile
Money platform (XMM) and
many other products in the
offing. Very soon, we shall be
coming back to give you news
on another innovation.
Where do you see Dei
Technologies in the next five
years?
At Dei Group, our goal is
to build one of the World’s
great Companies that will
positively change the lives of
the African People and the
World at large.
We make decisions in the
context of Forever! We are
not making decisions for
the expediency of getting
through one day. We are
innovating for this and the
next Generations.
27
business
ENERGY REAL ESTATE

Total Uganda unveils individual fuel cards Property market in Uganda

T
otal Uganda has unveiled a new more stable- Knight Frank

cashless payment solution for its
customers as it strives to increase
convenience at all its 128 ser-
vice stations as well as enhance revenue
growth.
The new card that goes for Shs11, 800,
will also enable customers pay for other
services such as Total wash, cooking gas
and solar products.
Florentin de Loppinot, the managing
director, Total Uganda Limited, said the
new card has been designed to help indi-
vidual customers plan and manage their
spend better due to introduction of ceiling
limits, choice of service and analytic report-
ing.
“In the past, large companies were the
only ones with fuel cards to manage their
fleet but we realized the need for individu-
als who want to control the fuel they use
AVIATION
Emirates, Flydubai moves 165,000 passengers
Total Uganda MD Florentin De Loppinot (L) and
the firms Retail Manager Angela Bogere launch
the Individual fuel card at the Kampala Serena
Hotel on Jan 18.  INDEPENDENT/ISAAC KHISA
for efficiency and cost saving, “he said.
“We are (also) working on seeing how
to reduce cash transactions at our fuel
stations but transactions go on.” Presently,
Total Uganda has more than 11,000 fuel
cards in circulation.
T
he property market in Uganda
has not recovered to its past
glory but it is more stable
and less volatile than it was
two years ago, according to a market
update by Knight Frank Uganda, a
real estate consultancy firm.
It adds that many of the factors
which led to the slowdown of the
sector leaving property investors
exposed have been reigned in.
“For example, prime lending
rates have reduced significantly,
the shilling though still weak
has remained stable, speculative
development of commercial property
has reduced significantly and
rental levels are stabilising as office
occupancy rates steadily increase,”
the update reads in part.
Knight Frank, however, cautions
government on being quick to
regulate the property market by

T
op executives of Emirates and fly-
dubai Airlines plan to offer travellers
more connectivity and flight options
in 2018, with new codeshare flights
planned for various destinations across the
globe including Entebbe. Both Dubai-based
airlines currently offer customers with code-
shares to 81 destinations.  The partnership of
the two airlines, which started in October last
year, initially began with codeshare flights
to 29 cities, and this has quickly expanded to
meet demand as customers realise the ben-
efits of increased flight frequencies.
offering knee jerk reactions to
complex and structural issues like the
dollar versus shilling rental regime.
Despite the upbeat projection, the
consultancy says the landscape in
Kampala faced a dramatic change
in the second quarter of 2017 when
Nakumatt stores closed, causing a dip
in business and consumer confidence.

ENERGY CSR

French firm appointed to supervise Sadolin launches Shs 180m colour center
Isimba Dam construction

O
n Jan 18, Uganda
Electricity Gen-
eration Company
Limited appointed
a French firm, Artelia EAU
& Environment in associa-
tion with KKATT Consult
Limited, to oversee the con-
struction of 183MW Isimba
Hydropower Dam, ending
months of bickering between
government agencies. The
The two firms will
carry out a design review,
quality assurance, project
supervision and ensure
strict enforcement of con-
tractual obligations by the
Engineering Procurement
& Construction Contractor
(EPCC) for China Interna-
tional Water and Electric
Corporation, according to Officials cut the tape at the launch of the Colour Centre.  INDEPENDENT/JBUSINGE
the contract.

deal is worth US$4million.
The new Owners Engi-
neer (OE) now takes over
from Energy Infratech PvT
Limited (EIPL) whose con-
tract expired in September
last year. Infratectech PvT
Limited (EIPL) did not have
its contract renewed because
it is alleged to have been
responsible for the shoddy
work at Isimba and Karuma.
“We believe the new OE
will go a long way to help
us make sure that going for-
ward the ongoing site works
are properly supervised
so that come August 2018
we have a fit-for-purpose
facility,” said Harrison
Mutikanga, the executive
director at UEGCL. Isimba
Dam Construction is at 75%
completion.
I
n a bid to improve its visibility
in the paint market, Sadolin
Paint in partnership with
Joseph Kanaaba, a local busi-
nessman has launched a colour
center at Freedom City Mall along
Entebbe Road. The spacious estab-
lishment will be home to all Sado-
lin products and services, enabling
customers to get a wide array of
services including paint tinting and
mixing with the latest technology
and colour consultations and more.
Deon Nieuwoudt, AkzoNobel’s
planning and execution manager,
said on Jan.17 at the launch that this
was an affirmation of the compa-
ny’s commitment to the expansion
of Sadolin footprint and growth
commitment to Uganda through
firming up franchise agreements
with local entrepreneurs.

28 Jan 26 - Feb 01, 2018

 business

Uganda’s financial market

ranked 10th in Africa
By Isaac Khisa and other partners to address

U
ganda’s financial
market has been
ranked 10th with a
score of 47%, a head
of Tanzania in the East African
Community in the inaugural
Barclays Africa Group Finan-
cial Markets Index 2017.
The survey that was con-
ducted in 17 African countries
that account for 60% of the con-
SEATINI CEO Nathani Irumba (L) and Country Director, Jane Nalunga address tinents’ GDP, shows that Tan-
the media on the Civil Society’s position on the 2018/19 budget allocation zania ranked 11th with a score
on Jan 21. They urged government to increase the proposed Shs 119.4bn of 44%. Rwanda and Kenya, on
allocated to the trade ministry.  INDEPENDENT/JIMMY SIYA the other hand, ranked 8th and
5th with a score of 48% and
59%, respectively.
The index by Barclays
Africa Group and the London-
based Official Monetary and
Financial Institutions Forum
(OMFIF), measures six pillars
of financial markets namely;
depth and breadth of financial
instruments, access to foreign
exchange, and market trans-
parency and regulation. Other
measures are macroeconomic
opportunity, legality and
enforceability.
It intends to drive conversa-
tions among policy-makers,
investors, market participants
Trade Minister, Amelia Kyambadde (2nd L) with the Brookside team, Benson
Mwangi, Joseph Owino, Vincent Omoth and Robert Walibwa upon winning
the Gold Award at the President’s Export Award 2017 under the dairy products
category on Jan. 18.  INDEPENDENT/JIMMY SIYA
gaps and track progress in
Africa’s financial markets.
South Africa emerged first in
the survey with a score of 92%
followed up with Mauritius
(66) and Botswana (65).
George Asante, the manag-
ing director and head of mar-
kets at Barclays Africa Group,
said Uganda’s ranking is attrib-
uted to good foreign exchange
access even as liquidity in its
domestic foreign exchange
market remains low.
He, however, said the coun-
try’s stock exchange now needs
to promote greater issuance of
corporate bonds to be listed on
its exchange as well as focus
on financial literacy, training
for market practitioners, liber-
alisation of the pension sector,
public awareness campaigns
and strengthening the local and
foreign investor base to grow
the financial market.
Louis Kasekende, the deputy
governor, Bank of Uganda,
said the new index will provide
them with much needed data
to evaluate performance of
the financial sector and attract
more investment.

Weekly share price movement (Jan. 17)

Security Jan. 17 Jan 11 Movement
BATU 30000 30000 00
BOBU 112 113 -7.6
CENT 1,579 1,568 1.2
DFCU 681 681 00
EABL 8,401 8,472 -0.8
EBL 1,491 1,453 2.6
JHL 17,650 17,689 -0.2
KA 582 574 1.4
KCB 1,579 1,524 3.6
NIC 12 12 00
NMG 4,024 4,076 -1.2
NVL 515 515 00
Vivo Energy Uganda Retail Manager, Issa Karanja (R) hands over kitchenware SBU 29 27 7.4
to winners of Shell Select campaign on Jan 19. (L-R) is Joseph Kakooza, Clare
UCHM 141 136 -6.2
Namakula, and Noordine Umar.   INDEPENDENT/JIMMY SIYA
UCL 29 29 00
UMEME 400 400 00
ALSI -- -- --

Jan 26 - Feb 01, 2018 29

COMMENT
By Urs Rohner
GDP should be corrected, not replaced
Instead of seeking a new, disruptive framework, we
should focus on making incremental changes
R
espected economists have long
pointed out that gross domestic
product is an inadequate measure
of economic development and social
well-being, and thus should not be policy-
makers’ sole fixation. Yet we have not gotten
any closer to finding a feasible alternative to
GDP.
One well-known shortcoming of GDP is
that it disregards the value of housework,
including care for children and elderly family
members. More important, assigning a
monetary value to such activities would not
address a deeper flaw in GDP: its inability
to reflect adequately the lived experience of
individual members of society. Correcting
for housework would inflate GDP, while
making no real difference to living standards.
And the women who make up a predomi-
nant share of people performing housework
would continue to be treated as volunteers,
rather than as genuine economic contribu-
tors. Another well-known flaw of GDP is that
it does not account for value destruction, such
as when countries mismanage their human
capital by withholding education from cer-
tain demographic groups, or by depleting
natural resources for immediate economic
benefit. All told, GDP tends to measure assets
imprecisely, and liabilities not at all.
Still, while no international consensus on
an alternative to GDP has emerged, there has
been encouraging progress toward a more
considered way of thinking about economic
activity. In 1972, Yale University economists
William Nordhaus and James Tobin pro-
posed a new framework, the “measure of
economic welfare” (MEW), to account for
sundry unpaid activities. And, more recently,
China established a “green development”
index, which considers economic perfor-
mance alongside various environmental
factors.
Moreover, public- and private-sector
decision-makers now have far more tools for
making sophisticated choices than they did
in the past. On the investor side, demand for
environmental, social, and governance data
is rising steeply. And in the public sector,
organisations such as the World Bank have
adopted metrics other than GDP to assess
quality of life, including life expectancy at
birth and access to education.
At the same time, the debate around gross
national income has been gaining steam.
Though it shares fundamental elements with
GDP, GNI is more relevant to our globalised
age, because it adjusts for income generated
30 Jan 26 - Feb 01, 2018
by foreign-owned corporations and foreign
residents. Accordingly, in a country where
foreign corporations own a significant share
of manufacturing and other assets, GDP will
be inflated, whereas GNI shows only income
the country actually retains (see chart).
Ireland is a prominent example of how
GNI has been used to correct for distortions
in GDP. In 2015, Ireland’s reported GDP
increased by an eye-popping 26.3%. As an
October 2016 OECD working paper noted,
the episode raised serious questions about
the “ability of the conceptual accounting
framework used to define GDP to adequately
reflect economic reality.”
The OECD paper went on to conclude that
GDP is not a reliable indicator of a country’s
material well-being. In Ireland’s case, its
The Mismeasure of Prosperity
Deviation of GDP per capita from GNI per capita, select countries, 1990-2016
%
40
30
20
10
0
-10
-20
-30
1990 1992 1994 1996 1998
Source: Author's calculations
single year of astonishing GDP growth was
due to multinational corporations “relo-
cating” certain economic gains – namely,
the returns on intellectual property – in their
overall accounting. To address the growing
disparity between actual economic develop-
ment and reported GDP, the Irish Central
Statistics Office introduced a modified ver-
sion of GNI (known as GNI*) for 2016.
The gap between GDP and GNI will
likely close soon in other jurisdictions, too.
In a recent working paper, Urooj Khan of
Columbia Business School, Suresh Nal-
lareddy of Duke University, and Ethan
Rouen of Harvard Business School highlight
a misalignment in “the growth in corporate
profits and the overall US economy” between
1975 and 2013. They find that, during that
period, average corporate-profit growth out-
paced GDP growth whenever the domestic
corporate-income-tax rate exceeded that of
other OECD countries.
In late December, this disconnect was
addressed with the passage of the 2017 Tax
Cuts and Jobs Act. By lowering the corporate-
tax rate to a globally competitive level and
granting better terms for repatriating profits,
the tax package is expected to shift corpo-
rate earnings back to the United States. As a
result, the divergence between GDP and GNI
will likely close in both the US and Ireland,
where many major US corporations have
been holding cash.
Looking ahead, I would suggest that poli-
cymakers focus on three points. First, as dem-
onstrated above, the relevant stakeholders
are already addressing several of the flaws in
Ireland
USA
Japan
Germany
Haiti
Russia
Norway
2000 2002 2004 2006 2008 2010 2012 2014 2016
GDP, which is encouraging. Second, public-
and private-sector decision-makers now
have a multitude of instruments available for
better assessing the social and environmental
ramifications of their actions.
And, third, in business one must not let the
perfect become the enemy of the good. We
have not solved all of the problems associ-
ated with GDP, but we have come a long
way in reducing many of its distortions.
Instead of seeking a new, disruptive frame-
work to replace current data and analytical
techniques, we should focus on making
thoughtful, incremental changes to the
existing system.
Urs Rohner is Chairman of the Board of Credit
Suisse.
Copyright: Project Syndicate, 2018.

By Ladislas Ngendahimana
Kagame at African Union
Hope is not lost from the man whose vision and
experience helped rebuild Rwanda from the ashes
F
ifty four years after her creation, the
African Union is still struggling for
her internal organisation and func-
tioning. And the global Pan-African
Movement which envisions driving the dig-
nity and unity amongst Africans remains a
non-operational framework.
It is under such turmoil that President
Paul Kagame takes the annual rotational
leadership of the African Union for 2018.
Analysts are busy in predicting the
future of the African Union. Looking
through the publications and media
reports, the organisation is far from
reaching the prosperous and peaceful
Africa, free from wars and armed con-
flicts by 2020.
The future of Africa shall depend
mainly on its citizens. As of now, all
African countries are independent. Every
leader is a product of her/his society. Our
leaders are African citizens.
I don’t wish to look alarmist, but it
looks like some Africans –not to say
“many”- don’t want a strong Africa and
African Union.
A few days ago, a leader of a sister
country reportedly said that; Africa is
a “shithole” continent with “shithole”
countries.
I have been waiting for a strong reac-
tion from African leaders and citizens.
What transpired was that only the
African Union Commission and few
governments expressed their dissatisfac-
tion. Others kept quiet as if nothing hap-
pened. I think such people and leaders
don’t wish to see themselves at the high
table with dignity.
We should all agree that democracy
and government institutions can only
work if the citizens want them to deliver.
Irresponsible citizens would only create
non-sensitive leaders.
Though “corruption is not African”,
as President Kagame once said, power
struggles, corruption, and political
opportunism are critical in paralysing the
performance of the African Union.
This year, Africa shall be dominated by
elections. From experience, ill-wishers
are on standby to use their proxies to
destabilise the concerned countries.
Elections are scheduled in all corners
across the Continent. Mauritius and
Cameroun shall hold their presidential
elections.
The youth
remain a
critical
success
factor, but they
need to be
nurtured and
inspired
Mali, Sierra Leone, Zimbabwe, South
Sudan, Madagascar and Democratic
Republic of Congo shall hold their gen-
eral elections, that is; presidential and
legislative.
Chad, Djibouti, Guinea Bissau, Gabon,
Togo, Guinea, Sao Tome and Principe,
Rwanda, Swaziland and Mauritania shall
hold their legislative elections.
Africans should all learn from the past
and prepare better and peaceful, trans-
parent and democratic elections.
If Africans really need a prosperous
continent, they should work together
towards regional and continental inte-
gration to foster trade and investments.
It can only be achieved with leadership,
governance and institutions that fit and
work for Africa. Can we stand firmly, as
Africans, and say that we are safe?
Looking at the current situation in
many countries that are preparing for
elections, I would respond in the nega-
tive. There are some leaders in comfort
zones, who don’t care about the next
generations.
And, to be honest, Africa’s dignity shall
never be offered as bread on the table.
We need to actively struggle for it, and
it requires responsibility, determination,
hard work, and risk taking.
COMMENT
The fact that Africa suffered from
slavery is not enough to claim dignity as
a gift.
President Kagame will have heavy
tasks; including integration and migra-
tion, conflicts and wars, revitalisation
of peace efforts in many countries, in
addition to overseeing the African Union
institutional reforms.
More tasks and requests shall keep
flowing on him from Africa and beyond,
as we can all foresee, considering the
volatile situation in several countries.
Without a solid social contract with
firm, stable and predictable finances
from Africans themselves, the African
Union –which should address Africa’s
challenges - remains all but a dependent
and financially handcuffed institution.
But all is not of chaos, despair, and
crisis. Hope is not lost.
At least only twenty African countries
have embarked on implementing the
0.2 percent levy on eligible imports to
finance the African Union, though the
majority’s resistance remains a counter-
productive challenge.
Another key challenge is about free
movement of people, because a visa is
still required for many intra-African
movements, and this remains critical to
trade and investments. Africans should
think big to open their borders to Afri-
cans.
The youth remain a critical success
factor, but they need to be nurtured and
inspired. The future is in their hands and
the Pan-African Movement would serve
the purpose but only with support from
Heads of State.
Africans’ hope lies in our leaders’
hands. Kagame’s vision and experience
helped rebuild Rwanda from the ashes
of genocide against Tutsi in 1994. I pray
other Africans can join his efforts in
shaping a prosperous and dignified Con-
tinent. Africa should never be considered
a “shithole”. Africans deserve better at
the high table, and it is time for renais-
sance. Team work and unity of purpose
are required. Hope is not lost.
The author is a Political Analyst and a
member of the Pan-African Movement,
Rwanda Chapter
Twitter @NLadislas
Jan 26 - Feb 01, 2018 31
COMMENT
By Giulio Boccaletti
Water and health management
Degradation of freshwater ecosystems often brings
disease, water protection improves health outcomes
W
ith climate change accelerating
and its effects exacerbating
other geopolitical and de-
velopment crises, the role of
environmental protection in preserving and
improving human wellbeing has become
starkly apparent. This recognition lies at the
heart of the concept of “planetary health,”
which focuses on the health of human
civilization and the condition of the natural
systems on which it depends.
The concept’s logic is simple: if we try to
deliver better health to a growing popula-
tion, without regard for the health and secu-
rity of our natural resources, we will not
just struggle to make new strides; we will
reverse the progress already made. Where
things get complicated is in applying the
concept, particularly when addressing the
nexus of water services, health, and ecosys-
tem integrity.
Since at least 1854, when John Snow dis-
covered that cholera was spread through
contaminated water supplies in central
London, humans have understood that
polluted water is bad for our health. The
degradation of freshwater ecosystems often
brings disease, just as the protection or
strengthening of such ecosystems improves
health outcomes.
But, while it is now well understood that
progress in one area improves outcomes in
another, such co-beneficial dynamics often
are insufficient to spur investment in both
areas.
For example, investing to protect a
watershed can also protect biodiversity and
improve water quality in associated rivers,
thereby benefiting human health. But if the
goal is explicitly to improve human health,
it might be more cost-effective simply to
invest in a water-treatment plant.
A more compelling dynamic is comple-
mentarity: when investment in one area
increases the returns on investment in other
areas. In this scenario, investments in pro-
tecting a watershed would aim not just to
produce returns directly, but also to boost
the returns of simultaneous investments
in human health. Complementarity pro-
duces mutually reinforcing dynamics that
improve outcomes across the board.
A well-functioning water sector already
attempts to balance complementary inter-
32 Jan 26 - Feb 01, 2018
ventions. Indeed, such a system amounts
to a multidisciplinary triumph of human
ingenuity and cooperation – involving
engineering, hydrology, governance, and
urban planning – with far-reaching comple-
mentary impacts on both human health and
economic development.
In 1933, through the Tennessee Valley
Authority Act, the United States established
an agency whose purpose was to build
hydroelectric dams on the Tennessee River.
That effort benefited industry, agriculture,
flood control, and conservation throughout
the Tennessee Valley watershed, until then
one of the country’s most disadvantaged
regions.
Since then, governments worldwide have
recognized the potential of water infrastruc-
ture to complement other economic and
social policies, including those intended to
improve health outcomes. It is no coinci-
dence that one of the World Bank’s largest
lending portfolios – $35 billion worth of
investments – comprises water projects.
But understanding the potential of
complementarity is just the first step. To
maximize results, we must design a coher-
ent strategy that takes full advantage of the
dynamic, at the lowest possible cost. The
question is whether there is an optimal
mix of environmental protection and direct
health interventions on which policymakers
can rely to maximize investment returns for
both.
A recent analysis suggests that, in rural
areas, a 30% increase in upstream tree cover
produces a 4% reduction in the probability
of diarrheal disease in children – a result
comparable to investing in an improved
sanitation facility. But, if that is true, we
have yet to determine at what point refor-
estation becomes a better investment than
improving sanitation, let alone increases the
returns of other health interventions by the
highest possible amount.
Another study found that an estimated
42% of the global malaria burden, includ-
ing a half-million deaths annually, could
be eliminated through policies focused on
issues like land use, deforestation, water
resource management, and settlement sit-
ing. But the study didn’t cover the potential
benefits of employing insecticide-treated
nets as a tool for fighting malaria, ruling
out a comparison of the two investments’
returns.
Worldwide, around 40% of cities’ source
watersheds show high to moderate levels
of degradation. Sediment from agricultural
and other sources increases the cost of water
treatment, while loss of natural vegetation
and land degradation can change water-
flow patterns. All of this can adversely affect
supply, thereby increasing the need to store
water in containers – such as drums, tanks,
and concrete jars – that serve as mosquito
larval habitats. Can we show that ecological
restoration of the watershed could do more
than just insecticides or mosquito nets to
support efforts to reduce malaria (and den-
gue) in cities?
In all of these cases, finding the best
option requires knowing not just the rela-
tive contribution of different interventions,
but understanding their complementarity.
In a world of limited resources, policy-
makers must prioritize their investments,
including by differentiating the necessary
from the desirable. To that end, finding
ways to identify and maximize complemen-
tarity is vital.
Some 2.1 billion people worldwide lack
access to safe, readily available water at
home, and more than twice as many – a
whopping 4.5 billion – lack safely managed
sanitation, severely undermining health
outcomes and fueling river pollution.
With a growing share of the world’s
population – including many of the same
people – feeling the effects of environmental
degradation and climate change firsthand,
finding solutions that simultaneously
advance environmental protection, water
provision, and health could not be more
important. Global health and conservation
professionals must cooperate more closely
to find those solutions – and convince
policymakers to pursue them.
Giulio Boccaletti is Chief Strategy Officer
and Global Managing Director for Water at
The Nature Conservancy.
Copyright: Project Syndicate, 2018.
Why is it so difficult
for scientists to
discover new drugs?
Over-reliance on and misuse of antibiotics has led to
warnings of a future without effective medicines
By Agencies
I
t’s a tale of scientific discovery taught
the world over: the serendipitous find
of a mould that revolutionised modern
medicine.
Almost 90 years ago, Alexander Fleming
returned from holiday to find Penicillium
on Petri dishes left in his basement labora-
tory at St Mary’s Hospital in London.
By the 1950s, the golden age of antibiotic
discovery, an array of new medicines was
being found.
Today, scientists are searching for a new
breakthrough, testing microbes in sources
as diverse as soil, caves and Komodo
dragon blood, as well as developing new,
lab-made synthetic drugs.
Yet despite these remarkable advances,
we are running out of effective antibiotics -
the drugs that fight infection and are essen-
tial for everything from organ transplants to
the treatment of food poisoning.
Deadly bacteria resistant to penicillin,
or the more than 100 different antibiotics
since developed, are already killing 700,000
people every year.
Unchecked, the global toll could rise to 10
million a year by 2050.
If the problem is so serious, why, in this
age of incredible medical and scientific
endeavour and advance, is it so difficult to
get the new antibiotics the world so desper-
ately needs?
Racing the superbugs
The answer lies partly in scientific chal-
lenge and partly in the broken economy of
research and development work.
Perhaps the less well known part of Flem-
ing’s story is the long period of research
and collaboration which followed, before,
in the 1940s, Penicillium became the world’s
first antibiotic. Or that Fleming himself cau-
tioned from the earliest days that bacteria
could become resistant to drugs.
As a patient, antibiotics can seem such a
simple treatment for infection, but the pills
have a complex relationship with the very
bacteria they are designed to destroy.
All microorganisms evolve and those that
develop defences against antibiotics will
survive, while the defenceless will be killed.
The more antibiotics we use, the faster the
process of bacteria developing resistance
becomes. The result of misuse and overuse,
in human and animal health, is a continual
race to stay ahead of the superbugs.
Years of testing
It’s easy to find chemicals that kill bac-
teria. The challenge is that it’s much more
difficult to discover and develop substances
that are not also toxic to humans.
The path from discovery to clinically
approved medicine is necessarily long and
the failure rate is high.
The process starts with basic research to
identify organisms which produce antibi-
otic substances. Thousands of possibilities
will be screened - a process which in itself
can take years. Scientists look at different
chemicals, combinations of chemicals and
ways to weaken bacteria.
Some might try to attack the cell wall;
others interfere with the way the bacterial
cell functions, or with its metabolism.
When a candidate is found this must be
tested on known infectious bacteria.
Then, if the results are promising, it will
be tested for its possible toxicity to humans
and must be produced at scale.
Only then can the years of clinical trials
begin.
In total it takes around 10 to 20 years
from discovery to medicine.
No new discoveries
Of course, with complexity and uncer-
tainty comes cost.
This is where the broken economy comes
into play. Antibiotics are not only complex
to develop, the most innovative new prod-
ucts also cannot be sold freely.
Jan 26 - Feb 01, 2018 33
health
Instead, they must be put
on the shelf in reserve for
serious cases - as is the case
with colistin, the “drug of
last resort”.
This doesn’t present
an appealing investment
opportunity, and over the
past 30 years pharmaceuti-
cal companies have signifi-
cantly decreased their work
developing new antibacterial
therapies.
No new classes of antibiot-
ics have been invented for
decades. In fact, all the anti-
biotics brought to the market
in the past 30 years have
been variations on existing
drugs discovered by 1984.
Most worryingly, it was
as long ago as 1962 that the
last new class of antibiotics
to treat those infected by the
most resistant gram-negative
superbugs was discovered.
These include multi drug-
resistant bacteria which
can cause severe and often
deadly bloodstream infec-
tions and pneumonia.
They pose a particular
threat in hospitals, nurs-
ing homes and for patients
treated with devices such as
ventilators and catheters.
Other priorities include
increasingly drug-resistant
bacteria that cause more
common diseases such as
gonorrhoea and food poi-
soning caused by salmonella.
In recent years, as aware-
ness of drug-resistant
infections has increased
and politicians have taken
heed of the warnings
long given by doctors and
scientists, the public and
private sectors have begun
to work together to find
solutions.
As of May 2017, a total
of 51 antibiotics were
in the clinical pipeline -
around a third targeting
priority pathogens, 12
families of bacteria seen as
posing the greatest threat
to human health.
But only a small number
are innovative products
- those not based on exist-
ing classes of antibiotics.
New drugs are vital but
they are only part of the
solution.
34 Jan 26 - Feb 01, 2018
Not just luck
We also need to explore
the potential for vaccines to
protect against infection in
the first place.
And better, more accu-
rate diagnosis of infections
could help doctors know as
quickly as possible the best
and most appropriate treat-
ments. We also need a better
understanding of where
drug-resistant infections are
spreading, not just in people,
but also in animals and the
environment. Improving
hygiene in hospitals, clinics
and communities across the
world would help stop infec-
tion taking hold in the first
place.
If we are to succeed in
getting and staying ahead of
superbugs we cannot rely on
Fleming’s luck in 1928.
More needs to be done to
ensure industry and govern-
ments work together to test
promising treatments and
bring them to market. Per-
haps most importantly of all,
we must give this miracu-
lous and marvellous medi-
cine the respect it deserves.
Antibiotics, old and new,
are a valuable resource, to be
used only when necessary
for protecting and improv-
ing health.
About this piece
This analysis piece was
commissioned by the BBC
from an expert working for
an outside organisation.
The overuse of antibiotics
 A fifth of antibiotic
prescriptions are unnec-
essary, Public Health
England says
 Coughs or bronchitis
may take three weeks to
clear on their own, but
antibiotics reduce that
by just one to two days,
it says
 Thousands of people die
each year as a result of
drug-resistant infections
 Worldwide, if unad-
dressed, drug-resistant
infections could kill
more people than cancer
by 2050
 Animals consume a
large proportion of anti-
biotics - as much as 80%
in the US
A type of shallot used in Iranian cooking could help “reverse the
tide” of drug-resistant TB, researchers found
Onion could help fight
TB antibiotic resistance
A
type of onion called the
Persian Shallot could
help the fight against
antibiotic resistance in
cases of tuberculosis, a study has
suggested.
Researchers believe the anti-
bacterial properties extracted
from the Persian shallot could
increase the effects of existing
antibiotic treatment.
They said this could help
“reverse the tide” of drug-resis-
tant TB, which infected 490,000
people in 2016.
But they said the research was
still in its early stages and clinical
trials would need to follow.
In the ongoing study, led by
Birkbeck, University of London
and University College London,
the research team conducted tests
on four different molecules from
the shallots, which are a staple of
Iranian cooking.
They found all four showed
a significant reduction in the
presence of the bacteria in the
multidrug-resistant TB - the most
promising candidate of which
inhibited growth of the isolated
TB cells by more than 99.9%.
The team concluded that the
chemical compounds could be
used alongside existing antibiot-
ics to combat strains of TB which
have developed resistance to anti-
bacterial drugs.
Dr Sanjib Bhakta, one of the
study’s authors, from Birkbeck’s
department of biological sciences,
said: “Despite a concerted global
effort to prevent the spread of
tuberculosis, approximately 10
million new cases and two mil-
lion deaths were reported in 2016.
“In searching for new anti-
bacterials, we tend to focus on
molecules that are potent enough
to be developed commercially as
new drug entities by themselves.
“However, in this study we
show that by inhibiting the key
intrinsic resistance properties
of the TB, one could increase
the effects of existing antibiotic
treatment and reverse the tide of
already existing drug resistance.”
Prof Simon Gibbons, another
of the authors, and head of UCL’s
department of pharmaceutical
and biological chemistry, said:
“Natural products from plants
and microbes have enormous
potential as a source of new anti-
biotics.
“Nature is an amazingly cre-
ative chemist and it is likely that
plants such as the Persian shallot
produce these chemicals as a
defence against microbes in their
environment.”
In October, England’s chief
medical officer, Prof Dame Sally
Davies, urged global leaders to
tackle the growing threat of anti-
biotic resistance.
Medical experts say these
drugs are being used too much,
and that 25,000 people die across
Europe each year because of
drug-resistant infections.
Researchers said they hope the
molecules, which were tested in
a laboratory, could be combined
with existing antibiotics to form
new anti-TB drugs.
The research is published in the
journal Scientific Reports.
 ART | BOOKS | SOCIETY | TRAVEL | CULTURE
T
By Dominic Muwanguzi
he East Africa Art Biennale
(EASTAFAB) is finally coming
to Kampala. It’s happening
in February under the theme,
‘Moving art across borders’.
Biennales (Italian for `every
other year’), are typically large international
art exhibitions held in most cities around
the world. The EASTAFAB is based in Dar-
es-Salaam where it was first held in 2003.
When the Fifth EASTAFAB in 2012
moved across East Africa but did not take
place in Kampala, Ugandan organisers con-
jured up an alternative art exhibition; KLA
ART 012. After two seasons, however, it
folded and local artists felt left with limited
prospects of being noticed by an interna-
tional audience. But others saw opportunity
and swiftly moved to give birth to the Kam-
pala Art Biennale that has since invited art-
ists from the region and beyond to Kampala
to produce works that push the boundaries
of art making.
Also known loosely as the Art Safari,
EASTAFAB will travel to Kampala by truck,
after staging in regional cities like Dar-es-
Salaam, Arusha, and Nairobi. The idea is for
the Biennale to promote cultural integration
between East African countries through art.
Big is big
Art Safari
finally comes
to Kampala
Since its inception in 2003, the multi-
disciplinary EASTAFAB has been a podium
for both upcoming and established artists
to showcase art to diverse audiences across
the region. As part of this benefit of cultural
exchange, in subsequent years, a series of
exhibitions have been organised across the
borders of these countries. The Tigatinga
exhibition involving Tanzanian modernist
and contemporary artists that was mounted
at AKA gallery in Kampala in March 2017
is an example. Conversely, Ugandan artists
like Anwar Sadat Nakibinge, Jjuuko Hood,
Collin Sekajungo and Ismael Kateregga
have held either solo or group exhibitions in
Nairobi, Dar-es-Salaam, and Kigali.
In an attempt to build links between
regional artists and inspire cultural
exchange, the biennale also highlights the
vibrancy of the East Africa art scene.
Through its nature; accepting multi-dis-
ciplinary artworks like painting, sculpture,
video art, digital art and installations, the
festival demands that artists are creative
and innovative.
The resultant diverse exploration in tech-
nique and style positions artists from the
region in the global art world and the ste-
reotype type “African art” being primitive
art debunked.
Participating artists and organisations
involved have an opportunity to broaden
their knowledge on art making and man-
agement which sustains the art scene.
The EASTAFAB is a non-profit associa-
tion registered by the Tanzania National
Arts Council (BASATA). The East Africa
Biennale will take place in Kampala from
Feb. 02 to 08at AKA gallery. It is supported
by the Goethe Zentrum Kampala, Alliance
Francaise Kampala and AKA gallery.
Ugandan artists who have participated
previously in the East Africa Art Biennale
include, Eria Sane Nsubuga, Ahmed Abush-
ariaa, Ronex and Henry Mzili Mujunga.
Jan 26 - Feb 01, 2018 35
 ‘Selfieccino’ - self-portraits in froth!
A cafe in London is taking barista art to
a new level by giving customers the chance
to sip on their own self-portraits. The Tea
Terrace has become Europe’s first location to
deliver the “Selfieccino,” which features an
image of customers’ faces on the frothy top-
ping of their drinks.
Patrons send their headshots via an
online messaging app to the barista and are
given the choice of either a cappuccino or
hot chocolate as their canvas.
The image is uploaded to the “Cino”
machine while the drink is placed in
position. The picture is then scanned
and reproduced onto the froth using a
flavourless food colouring. The process
takes around four minutes before an
image is presented on the froth, ready to
be photographed and sent to all points via
social media before drinking. It costs around
5.75 pounds (Approx. Shs28 million).

Boy sues mum for posting photos on Facebook

An unnamed 16 year-old Italian boy has
sued his mother to court for constantly
posting photos of him on Facebook
without his consent. The boy claimed that
his mother’s actions had such a serious
impact on his social life that he was
considering transferring to a high-school in
the United States so he could “start over”.
The judge in Rome made a historical
decision, in favor of the teen, and ordering
the mother to delete all references of him
from her social media account.

Pope wades into airplane wedding uproar

Couple has sex once a year –
for very odd reason
When they were dating, the unnamed
man had some issues about the woman –
she bathed only once a week – when they
had sex. Nonetheless, the couple from the
Taiwanese city of New Taipei married. But
the questionable hygiene of Lin, the woman,
worsened after their wedding. Her weekly
showers became monthly showers, then
twice a year. It was when she started bath-
ing only once a year that he just couldn’t
take it anymore. It meant that they only had
sex once a year. The couple does not have
children in their decade-long marriage. The
man has petitioned court for divorce claim-
ing psychological torture due to his ex-wife’s
hygiene habits, or lack thereof.
Pope Francis recently
grabbed headlines by pro-
nouncing two flight atten-
dants man and wife while
flying 36,000 feet over Chile.
After serving breakfast,
Paula Podest and Carlos
Ciuffardi approached the
Pope for a blessing. They
told him that they had been
married civilly in 2010, but
that their plans for a church
wedding fell through when
an earthquake hit. The pope of the impromptu sacra- tionalist blog Rorate Caeli.
immediately proposed that ment and warned it could “One celebrated apparently
he marry the couple right cheapen the church’s mar- on a whim in an airplane
there. But the conservative riage preparation down the whose celebrant cannot
Catholic commentariat has line. “Do you know what’s even be sure if parties are
questioned the legitimacy a ‘marriage’ ripe for annul- validly baptised.”
ment?” tweeted the tradi-

Sunion: an onion to chop without tears
If you’ve ever had to chop an
onion, you probably know that
it’s one of the most annoying
cooking experiences. It just fills
your eyes with tears and, apart
from wearing goggles, there’s
not too much you can do about
it. Scientists have apparently
come up with a tearless onion.
Called the “Sunion”, it is a
sweet, mild-tasting onion that
also doesn’t leave that strong,
pungent aftertaste.
Man ruptures throat by stifling a sneeze
Stifling a sneeze by clamping
your nose and mouth shut can
cause serious physical damage,
doctors are warning.
Medics in Leicester, UK,
treated a 34-year-old man who
ruptured his throat while trying
to stop a high-force sneeze.
With nowhere to escape, the
pressure ripped through the
soft tissue, and although rare
and unusual, they say others
should be aware of the danger.
The man had to be fed by a
tube for the next seven days
to allow time for the tissues to
heal.Trapping a sneeze could
also damage the ears or even
rupture a brain aneurysm,
they warn in journal BMJ Case
Reports.
Sneezes can spread diseases,
so although it is good to “let
them out”, make sure you catch
them in a tissue, say experts.

36 Jan 26 - Feb 01, 2018

 6 coolest gadgets
for your ride in 2018
Wireless smartphone charger
A
utomakers are beginning to include
wireless smartphone chargers,
either standard or optional, in their
newest models. However, you
don’t have to upgrade to a new set of wheels
to get one. Ventev’s Wireless Pro replaces
the traditional (and often painfully slow)
USB charger with a device that delivers
fast, wireless charging while doubling as a
cradle. It’s three times faster than a standard
wireless charger.
RearVision backup camera
The Pearl’s RearVision backup camera
ensures you’ll never again bring your car
home with a dent — at least not one you’re
directly responsible for. Easy and quick to
install, it consists of a small camera inte-
grated into a frame you need to mount over
your rear license plate. It relies on Bluetooth
and Wi-Fi to transfer live footage straight
to your smartphone. Note the RearVision
doesn’t work with cars built before 1996.
Seat organiser
Now that you’ve amassed an arsenal of
useful gadgets, you’ll need a place to stow
them. The High Road Car Seat Organiser
is a solid storage option for families and
hoarders alike. The unit is made of durable
mesh and polyester, and comes with an
array of compartments and flexible pockets.
The adjustable headrest strap also easily
fastens to virtually any seat back, allowing
you to keep all of your belongings within
Bluetooth key tracker arm’s reach.
Our forgetfulness costs us thousands
of dollars over the course of our lifetimes.
Unsurprisingly, one of the most
commonly misplaced items are our car
keys. Thankfully, the Bluetooth-equipped
Tile Mate easily slides onto a keychain,
allowing you to track the whereabouts
of your keys using an accompanying
mobile app — even if they’re locked inside
your car. Tile is one of the best Bluetooth
trackers on the market, and it’s compatible
with several infotainment systems.
The Stinger
The Stinger is a handy device to have at
your disposal after an accident. If your car
windows or doors are jammed, the Stinger
is designed to shatter the dashboard or car
window, thus allowing you to quickly exit
your vehicle. The device also incorporates
a slim blade on the backside, which allows
you to slice through a jammed seat belt.
Self-powered jumpers
Jumper cables are great if you
have another vehicle to give you a
friendly jolt. However, if you’re in a
more isolated area, jumper cables are
essentially useless. The self-powered
Bestek Jump Starter is ideal for this
exact scenario, and it features two
USB ports for your mobile devices as
well as a flashlight.
Jan 26 - Feb 01, 2018 37
 Profile
Dennis Katongole’s passion
for radio and TV
By Agnes E Nantaba TV in 2007 with a political

D
talkshow called ‘Moment
ennis Katongole alias Omu- of Truth’.
tongole Mubatongole has “I usually want
for over a decade been a to start with new
popular name on most lo- stations because
cal radio and TV stations; especially they offer wide
Radio Simba, Beat FM, Bukedde TV opportunities and
and radio, Record and Delta TV in challenge me to
Kampala. He says he believes he was come up with new
created and made for the media in- programmes,” said
dustry. He loves and enjoys doing. Katongole.
His media personality career dates After three years,
back in 2001 during his Senior Six he switched to Buke-
long holiday when he majestically dde TV which was also
walked into the studios of Radio a new station then for a
Simba seeking a job as a presenter. musical show until he
“I wanted to work with Capital as moved on to Delta TV
an English station because I thought I where he currently
was really fluent with English only to hosts a late night
be told that my English was lacking music show.
for a station like that,” he says. Katongole has
He got the gig - as an all-round also dabble in elective
presenter. This meant sitting in for politics but has so far not
presenters who were either away on succeeded.
leave or had urgent errands to attend Katongole was born 38 years
to. It also meant putting in long ago in Kampala where him and
rehearsals for a job he had no experi- three others stayed under the cus-
ence at but only passion. todian of a single mother, Justine
Even when he got a permanent Mutegyereize. She would later pass
show of his own to host, pressure on two weeks to Katongole sitting
persisted to attract a bigger audience. his PLE. He explains this as one of
For almost five years, Katongole kept the toughest experiences in life hav-
in there as a darling for many listen- ing been so close to her. It also meant
ers hosting the Early Morning Show transitioning from city to vil-
until he moved. He says the decision lage life staying with a rural
to leave Radio Simba was tough. It father, John Kakooza (RIP)
had molded and trained him into and siblings.
who he is. He went to Mengo
“My breakthrough in life is Primary School, Kitatya
acknowledged to Radio Simba who Secondary School in
took me on when I was nothing,” Kayunga and Yale
says Katongole. High School. He
“I am also grateful because I have later did a diploma
been on the airwaves for more than a in Journalism and
decade but the audience still yearns degree in Mass Com-
for more since it is not easy to main- munication a Kam-
tain relevance in Uganda’s media pala International
industry”. University. For his
In 2006, he joined Beat FM and lat- long service in the
er Bukedde FM. In 2011, he returned media, Katon-
to Beat FM where he still hosts the gole wishes to be
breakfast show dubbed ‘Sisimuka’. remembered as a
He is also a programmes director for very strong and
the station. influential media
In a bid to grow his audience and personality who
retain relevance, Katongole sought shook the air-
a stint on TV. He started at Record waves.

38 Jan 26 - Feb 01, 2018


Dennis Katongole’s Liteside
Any three things we don’t
I
know about you?
often strive to be an honest
person. Some people have
been made to believe that I
am a womaniser but I end
up surprising them. I am a two-
in-one person: I am exhibit a
different character in the media
and when it comes to my real
life I am a very quiet and family
person.
What is your idea of perfect
happiness?
Family time is my happiness
What is your greatest fear?
Just thinking about the day
I will wake up without a job
makes me freak. It is the very
reason I work so hard and
treasure whatever earns me a
penny.
What is the trait you most de-
plore in yourself?
I can’t explain how it hap-
pens but I end up being an
imperfect time keeper. It both-
ers me a lot because I put in a
lot of effort to manage time.
What is the trait you most de-
plore in others?
I strive to tolerate people of
different characters but drug
addicts don’t work for me.
Which living person do you
most admire?
I admire someone who has
been in the media industry for
sometime ad moved on to a
higher level. Someone like Kato
Lubwama has taken on new
and greater challenges. My goal
is to retire from radio at some
point in time and take on new
challenges like representing my
people in parliament.
What is your greatest extrava-
gance?
I spend on someone I love
dearly and that can be my chil-
dren.
What is the greatest thing you
have ever done?
I have done a lot on radio
and being there for many years
is not something small. We
have worked with some people
who have worn out after just
five years but I am so grate-
ful to God that I have kept in
there with an audience and of
relevance.
What is your current state of
mind?
I am happy.
What do you consider the
most overrated virtue?
It has to do with exorbitant
and unnecessary spending by
many Ugandans. Some people
even go out of their way to
borrow and spend on useless
things.
What does being powerful
mean to you?
Money is power so anyone
who has the money has the
power.
On what occasion do you lie?
I strive to be an honest per-
son but end up throwing in a
lie or two.
What do you most dislike
about your appearance?
I am very happy the way I
was created but also with my
current appearance. I am not
even bothered by the little flesh
because I wouldn’t want to
grow any bigger.
Which living person do you
most despise?
There is someone I hate so
much but I can’t disclose him.
He is too selfish to the extent
that he never wishes good for
others.
What is the quality you most
like in a man?
Respect of self and others.
What is the quality you most
like in a woman?
Being caring and trustwor-
thy.
What or who is the greatest
love of your life
I love my son, Dennis Del-
mar Sserugo.
When and where were you
happiest
Every time I put my mind
and hands to something and
succeed.
Which talent would you most
like to have?
There is one more thing I
would wish to do in my entire
career and it has to do with
acting a movie in Hollywood. I
don’t know how I will do it but
I believe that I can make it.
If you could change one thing
about yourself, what would
it be?
Absolutely nothing.
What do you consider your
greatest achievement?
I have managed to build a
brand out of myself something
that cannot be underrated. It
is that brand that makes many
people believe that I can be
their representative politically.
Other achievements are per-
sonal.
If you were to die and come
back as a person or a thing,
what would it be?
I am okay coming back the
same person and doing the
same things.
Where would you most like
to live?
Uganda is the best country to
live in with the best climate. It
is only after travelling to other
countries that you can treasure
the gold in our talent.
What is your most treasured
possession?
Nothing equates to my good
Jan 26 - Feb 01, 2018
Q&A
health and voice.
What is your favorite occupa-
tion?
Being a media personality is
something I do out of love. It is
something that fulfils me.
What do you most value in
your friends?
I value friendship that gives
back to me. Some friends only
work to take away from others
so I value those who recipro-
cate.
Who are your favorite writers?
I am not an ardent reader so I
can’t point to any writer.
Who is your hero of fiction?
I am not attached to a char-
acter. I am taken by action
movies.
Which historical figure do you
most identify with?
One gentleman who worked
so hard in the media industry
was Mulindwa Muwonge.
Many media personalities
looked up to him for his hard
work. I also loved the way
Nelson Mandela did his thing
which is the reason he is still
loved even when he is gone.
Who are your heroes in real
life?
My number one hero was
my father because I looked up
to him for so many things.
What is your greatest regret?
There are things that I wish
to have done; for instance I
was very good at soccer which
makes me regret to not having
taken that path. I am however
grateful where I am.
How would you like to die?
I just want to sleep away.
What is your motto?
God first in the morning.
39
Global comment
By Simplice A. Asongu
Liberal democracy can wait
Food, shelter, health, and good sanitation should
be more relevant for Africans than the vote
A
frica’s policymakers understand
that strong economic and political
leadership is essential to growth
and stability. For years, African
economies have fared better than expected,
owing to a commitment to improving gov-
ernance. The question now is how to sustain
the momentum.
Current strategies do not provide an
adequate answer. Although leaders at
a recent African Economic Conference
in Addis Ababa, Ethiopia, committed
to keeping governance reforms at the
top of Africa’s agenda, they offered no
blueprint. From my perspective, this
void presents an opportunity to consider
new governance paradigms, including
those that borrow from two commonly
discussed models: the “Washington Con-
sensus” and the “Beijing Model.”
Development practitioners have long
debated which model offers the best
framework for reform. Put simply, “gov-
ernance” refers to a dynamic framework
of rules, structures, and processes that
help a government manage its economic,
political, and administrative affairs.
But which principles a government
focuses on varies by approach. The
model championed by the West places a
premium on human rights and democ-
racy, while the one advocated by China
is more concerned with political stability
and economic growth.
Since the election of President Donald
Trump, the United States, which remains
one of Africa’s top donors, has focused
more on the principles China favors –
like political stability, trade, and coun-
terterrorism – than on human rights.
The rationale is that the Beijing Model is
better for Africa in the short and medium
term. And, while it might not be popular
to admit, Trump has a point.
Simply put, food, shelter, health, and
good sanitation are more relevant for
most Africans than the right to vote.
Moreover, only a moderately wealthy
population, with a healthy middle class,
can adequately demand the rights that
democracy provides. Paradoxically, the
fastest way to build a strong middle
class in Africa would be to move toward
the hierarchy of principles that China’s
40 Jan 26 - Feb 01, 2018
model promotes.
For Africa to reorient its governance
approach, and embrace a post-Wash-
ington Consensus, its leaders must
commit to improving institutional effec-
tiveness and economic management.
The first set of reforms would involve
establishing clear lines of sovereignty
with international partners. Africa’s
relationship with Western donors, for
example, has historically placed indi-
vidual rights over national rights. But in
my view, individual rights should not
supersede sovereign ones. Punishing
entire countries for laws that affect a
minority is counterproductive.
An example of such collective punish-
ment occurred in Uganda in 2014, when
the World Bank froze some $90 million in
loans following the government’s enact-
ment of legislation criminalising homo-
sexuality. As a Ugandan government
spokesman said at the time, the bank
“should not blackmail its members” to
adopt Western values. Yet, when gover-
nance models are judged solely through
the lens of the Washington Consensus,
there is very little alternative.
Along the same lines, the second set of
reforms pertains to prioritising economic
rights over political rights. For example,
An example of
such collective
punishment
occurred in
Uganda in 2014,
when the World
Bank froze some
$90 million
politicians who manage an economy well
should not be subject to term limits. Nei-
ther Singapore nor China is a democracy;
but leaders in both countries have used
their political power to improve living
standards. Forcing leaders to step down
in the middle of economic reforms seems
counterproductive.
These are not far-fetched ideas. Today,
leaders in Rwanda, which is widely con-
sidered an African success story, have
improved stability by moving away from
the Washington Consensus approach to
governance.
Politically, Rwanda is strong, disci-
plined, and organised, but it is not lib-
eral. The landslide reelection of President
Paul Kagame last year had more to do
with power than democracy. Although
Kagame remains popular, his govern-
ment was criticised for stifling free
speech and human rights in the run-up
to the vote. The conclusion I draw is not
that human rights don’t matter, but that
political discipline and imperfect forms
of democracy are acceptable if the trad-
eoff is sustained progress in economic
and institutional governance.
We should be intellectually honest and
call a spade a spade. Rwandans should
not be ashamed to value economic and
administrative strength more than fair
elections. The question for other African
states seeking to reform their governance
models, then, is how much of Rwanda’s
approach to emulate.
Neither the Washington Consensus nor
the Beijing Model has all the answers.
But, as Rwanda has demonstrated, if
discipline and strong leadership are
improving lives and delivering public
goods, perhaps liberal democracy should
be a long-term priority.
Simplice A. Asongu is Lead Economist
in the research department of the African
Governance and Development Institute.
Copyright: Project Syndicate, 2018.
www.project-syndicate.org
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