News analysis Health Business

DP reunion excites Martyrs day tests Insurance market beckons Boom or bust in Uganda’s
party faithful faith – and health with huge opportunities property market?

Issue No. 523 June 01 - 07, 2018 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

Kidnappers
Why police is catching them now

www.independent.co.ug
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INBOX

Issue No. 523 June 01 - 07, 2018

News analysis Business Health Arts Motoring

Cover story
Kidnappers
Why police is catching them now

4 The Week
29 Comments
Shs25m worth of
drugs recovered Women4Women:
Influential women in
Uganda take charge of the
9 The Last Word future of women in Uganda
Inside the Rwanda-Arsenal deal: How
ignorance and stupidity combined to
make the UK press hostile to a highly 33 Health
profitable sponsorship
Martyrs day tests faith – and
health: Experts give pilgrims
16 Analysis tips as celebration happens
amidst disease outbreaks
Gaagaa: Bus to hell?:
After May 25 accident in which 22 perished,
company’s record on the road is under scrutiny
35 Arts & Culture
23 Business Art master innovates with
barkcloth: Fred Mutebi’s eco-
Boom or bust in Uganda’s property market?: canvases preserve an ancient
What experts say about real estate prospects tradition using current techniques

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

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

2 June 01 - 07, 2018

 Offline

President Yoweri
Museveni (R) shaking
hands with Roberto
Ridolfi Special
Adviser on Strategy
and Financing
Development of
Food and Agriculture
Organisation (FAO) “The closure of Nalufenya is not an end
of the United Nations in itself. There should be a deliberate
(UN) on May 23.
effort to professionalise the police
and have zero tolerance for acts of
torture”Prof. Med Kaggwa, Chairperson of
Uganda Human Rights Commission at the
release of a new report

Florence Nakiwala
Kiyingi, Minister of
State for Children and
Youth Affairs, speaking
at the opening of the
youth in action learning
event at Munyonyo
Commonwealth Resort
on May 23. She urged
the youth to sustain and “Police have taken a stand to suspend
develop their business.  
INDEPENDENT/JIMMY SIYA
the issuance of private firearms. We are
carrying out an audit to find out the
number of guns in private hands.” Emilian
Kayima, Police Spokesperson

Hajjat Aphwa
Ssebyala, (R) hands
over a tree plant
to Jean Phillippe
Bittencourt,
general manager
Sheraton as a
sign of keeping
the Hotel green
during an iftar
dinnerdinnerdinner.  “If ADF is a terrorist group, why
INDEPENDENT/JIMMY is the government offering it
SIYA logistical support and money every
month?”Jamil Mukulu, ADF rebel leader

20 22 150
Self kidnap cases People who perished Tax defaulters
that have taken place in a car accident in whom URA is going
according to Police Kiryandongo district to prosecute

June 01 - 07, 2018 3

week

LC elections Shs25m worth of drugs recovered Ministry considers

set for July 10 scrapping Septrin
After several postponements, for HIV patients
local council elections may take
place on July 10. The date was People living with HIV who
announced by the Chairman of have managed to suppress
Electoral Commission Justice the virus to undetectable
Simon Byabakama on May.25. levels could soon stop
He revealed that the government taking daily septrin – an
had released Shs6.5billion for the antibiotic they take to
exercise. prevent opportunistic
Byabakama who said the infections along with their
money is to cater for final anti-retroviral drugs.
preparations for the elections to
be held said most of the activities According to a May25
such as display of registers and statement released by the
verifying voters have already Ministry of Health, they are
been finished. Nomination of reviewing evidence for the
candidates has been scheduled continuing use of the drug
for July 04 and 05 which will in the era of test and treat.
be followed by three days of The policy of providing
campaigning. the drug for HIV-infected
The other activities like Jackson Ojera, Director Health Monitoring Unity displays some of the stolen individuals was adopted in
campaigning were done late last health supplies at their office on May 29.   INDEPENDENT/JIMMY SIYA 2005based on recommenda-
year in preparations for the polls tions from World Health
in November only for a court 16 boxes of coartem, over second case being registered Organization (WHO) and
injunction a day before women 60 boxes of gloves, 6 boxes of in one week with the previous UNAIDS. Now, the Min-
council representatives’ elections cannula, tins of septrin, chlo- being equipment estimated istry’s Dr. Charles Olaro
to stop them. Before this, prior roquine, panadol and Fragyl to cost shs28million. “A says once the policy review
preparations had been halted were on May 28 discovered in suspected stolen CD4 machine is concluded, the Ministry
by either lack of funding or a private home in Nsooba near was on 24th May found in a may consider prioritizing
disagreements over which form Mulago hospital in Kampala. bar in Kampala. It was in the patients such as pregnant
they should take where some While parading the drugs process of being sold when women, children and those
were against the idea of standing before journalists, the Health the unit was tipped off and we new on ARV treatment
behind one’s candidate of choice. Monitoring Unit director intercepted the transaction”. to ensure rational use of
Uganda has not elected local Dr.Jackson Ojera Abusu A hospital where the equip- resources.
council leaders for over 17 years. said three people including ment was stolen has according This came amidst a
a one Hassan Gudhugo, the to HMU reported a breakage Septrin shortage in some
head of the house have been in which a microscope was public facilities especially in
arrested for being found also stolen. Ojera said four Eastern Uganda. However,
with supplies labeled ‘Gov- people – three from Bushenyi though the Ministry says
ernment of Uganda, Not for and one in Kampala have been the drug will be available in
Sale’ which are supposed to arrested in connection to this these facilities by July, those
be given out to patients visit- case who were all discovered who need it now have to
ing public hospitals. by a whistleblower. buy it from private facilities.
Abusu said this is the

*terms and conditions apply

4 June 01 - 07, 2018

 Week

New report reveals most disputed land

WE ARE
A survey involving 465 Kaggwa, said land disputes
respondents interviewed on are the country’s biggest
land cases across 12 districts source of human rights
in the Karamoja, Northern, violations with the central

HIRING!
Eastern and Central regions region being the most affected
has revealed that districts as it has the highest influx
of Mubende, Amuru and of settlers who at times find
Katakwi have the biggest themselves in land fights with
number of disputed land. those they find already living
The report titled, ‘Land on the land.
Disputes and Human Rights The aim of this study Are you a Graphics designer?
in Selected according to
Regions of UHRC was We are looking for someone creative and up to date
Uganda’ was to enable
launched on government with the latest trends in design tools.
May.24 by gain a deeper
the Uganda understanding Send CV to:
Human Rights of why land E-mail: jwere@independent.co.ug
Commission disputes
(UHRC) arise and the Tel: +256-312-637-391/ 2/ 3/ 4
showing in human rights
the districts Catherine Meddie Kaggwa challenges that
Bamugemereire
under survey they come along
479 cases were with. The report
reported in 2014, 508 in 2015, was launched at the time
393 cases in 2016 and 510 in when several top government
2017 with many being cases officials have been exposed
of land grabbing, border by the lady justice Catherine
disputes, land compensation Bamugemereire led Land
disagreements and family Commission of Inquiry
related disputes. of being involved in land
At the launch of the report, grabbing and other illegal
UHRC chairman Meddie land dealings.

Another case of Crimean Congo fever confirmed

Five people were by May.27 still quaran- transferred to Mubende where he received continue when another tick bites. Human
tined at Mubende Regional Referral hospi- intravenous fluids until he succumbed. transmission occurs when human
tal for they got in contact with a 35 year old The fever is caused by infection with a beings get into contact with infected
man who has since succumbed to Crimean tick-borne virus and its hosts are mostly ticks through tick bites or direct contact
Congo hemorrhagic fever. wild and domestic animals including cattle, with blood or tissues of an infected
Sarah Opendi, the Minister of Health in sheep and goats. These animals become animal. There has been an outgoing
charge of general duties said the man had infected after being bitten by infected ticks outbreak of the fever since late last year
presented to a clinic in Kakumiro district and the virus remains in their bloodstream when it was reported in Nakaseke and
with a high fever and vomiting and was for about two weeks after infection, Luweero districts.
admitted there for two days before being allowing the tick-animal-tick cycle to

June 01 - 07, 2018 5

Week

Hostel, hall on fire

Just a day after fire gutted
Mary Stuart, a female hall
of residence at Makerere
University, a hostel at the
Makerere University Business
School (MUBS) also went
ablaze. The fire at Baheesi,
a private mixed sex hostel
started at the top floor of the
four storey building. Though
the real cause of the fire was
still unknown, just like at Mary
Stuart it was suspected to be
an electricity wiring fault.
However, while no injuries
were recorded at the hostel, Real Madrid win record 13th Champions League trophy
three students at Mary Stuart
got injured as they tried Two brilliant goals from Gareth Bale saw Salah was taken off a few minutes into the
to escape the fire. While Real Madrid rewrite history by winning game when he suffered a shoulder injury,
at the hall, Kampala City the third Champions League trophy in and then two startling blunders from
Lord Mayor Erias Lukwago a row. It was also the 13th trophy for the goalkeeper Loris Karius sucked momentum
urged the government and Spanish side which cemented their status as out of the Reds after an impressive start. The
private property developers Europe’s most successful club. Bale’s bicycle 3-1 victory also saw Madrid coach Zinedine
to ensure that tall buildings kick has been hailed as one of the greatest Zidane enter the history books as one of the
have emergency exits so that goals scored in a Champions League final. greatest club coaches for steering his side to
people’s lives can be saved For Liverpool however it was a night of three consecutive trophies in Europe’s elite
when such incidents happen. misfortune as their star player Mohamed club competition.

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6 June 01 - 07, 2018

Humour Did you know?
Robot submarine has
found ancient shipwreck
worth billions

Spanish treasure fleets that

Police have established a 24/7 emergency call centre on which kidnap cases should be reported. traversed the Atlantic Ocean
to the Americas and back were
a 16th-century invention as
important as free two-day
shipping. Organized 70 years
after Columbus’s first voyage,
the fleet was made up of several
specialised ships with one
primary goal: Exploiting the
riches of the New World as
efficiently as possible.
The San José, the largest galleon
and the flagship of one group of
Spanish ships that started sailing
in the 16th century, was big and
— thanks to 62 bronze cannons
engraved with dolphins — deadly
enough to deter or destroy ships,
whether pirates or rival nations.
Except when it didn’t. On June
The former security minister Lt Gen Henry Tumukunde says government 8, 1708, during the War of the
should not target muslins when fighting terrorism. Spanish Succession, the San José’s
gunpowder ignited during a
battle with British ships, sending
600 sailors to the bottom of the
Atlantic Ocean — along with
gold, silver and emeralds from
mines in Peru, a total haul valued
at some $17 billion in today’s
dollars.
It stands as one of the most
expensive maritime losses
in history. After staying
underwater, undiscovered for
more than 300 years, wreckage
of the San José was discovered
two years ago, but the location
off the Colombian port town of
Cartagena and other details have
been closely held secrets. They
Former Members of Parliament from the first to sixth Parliament will were released May 28.
each receive a handshake of Shs100m if the proposal is approved.

June 01 - 07, 2018 7

 News analysis Health Business
How university rape Why Mulago needs Banks unveil new Bidding starts for US$1bn
victims are silenced Shs28Bn to re- open oil and gas strategy Kampala-Jinja Expressway

Issue No. 522 May 25 - 31, 2018

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

Is economy
alive or dead?
UBOS, Finance, BOU experts disagree

Inbox
Follow us on Twitter @ Foreigners
dominate the

http://twitter.com/#!/ugandatalks
services sector,
which grew by GDP
9% Shs90Trillion
Other sectors didnt grow
.

Last year, the

sector contributed as much as Services,
Last year, the economy grew by 4.5 percent.
Shs43tn to GDP Critics say the growth rate is too low for a Industry and Agriculture
population that grows at 3.5 % every year
70 %
of Ugandans
depend on
agriculture,
which only
grew by
3.5 % and
contributes
about Shs22tn
to GDP

Follow us on Facebook @
www.facebook.com/TheIndependentMagazineUganda Foreigners also dominate
the industry sector, which
grew by 7.3%. Last year,
the sector contributed
Shs18tn to GDP

www.independent.co.ug

Thank you Dott Services for intervention on Mbale-Tirinyi road

Letters are
Heavy rains recently washed supposed to be. Now that both and doing the preliminary road
welcome ! out parts of the Mbale Trinyi Dott Services and UNRA are works that involved fixing very
road at Km77 on Nakalama speaking from the same page, bad spot such that the road is
The Editor welcomes short and
concise letters from our esteemed - Tirinyi - Mbale Road. Just we hope that works should fully usable as full construction
readers on topical issues. Please before 24 hours elapsed, how- resume soonest and we enjoy a takes place. As regular users
send them to: ever, the contractor Dott Ser- superb road that connects the of this road, we can pat you on
The Editor, The Independent vices arrived and made good whole of eastern and northern the back but also demand that
Publications Ltd, of the section that had been Uganda. you give us a very good road
P.O Box 3304,
washed away. Traffic flow The road reconstruction like the one you built in Bush-
Plot 82/84 Kanjokya St,
Kamwokya. soon resumed. works are estimated to last for enyi ie the Ishaka – Kagamba
Kampala,Uganda. Dott Services has been con- 22 months and works have Road.
tracted by UNRA to make the already began; especially the By David Serumaga
Email: editor@independent.co.ug road a superb highway it is moblisation of the equipment serumagadavid916@gmail.com

Summoning journalists over Budget increase bad

Explore reasons why Bagyenda leaks is defeatist amidst growing debt
civil servants are The police recently summoned some The World Bank, in its recent report, under-
absent from work journalists to appear before it after receiv-
ing a complaint from former central bank
scored the need to reduce expenditures and
enhance taxes to stimulate growth. Contrary to
The government of Uganda has executive director (supervision) Justine this, next fiscal year (2018/2019), the budget is
moved to reduce absenteeism in pub- Bagyenda in respect of publications of her poised to beShs.31.89 trillion up from Shs.29 tril-
lic health and educational institutions private bank details by some media houses. lion. This at a time when Uganda’s economy if
using the clock-in, clock-out of work- The banks acknowledged the authentic- faced with sky rocketing debt, at 37% of GDP,
ers at their duty stations. ity of the bank details, so one wonders why almost surpassing the threshold of 50 percent.
But, I believe it should have first the journalists are being summoned. There As usual financing of our budget has been
improved the conditions in which is no justice if people cannot see what is majorly out of borrowing, both domestic and
most of them operate. There is need happening. Media houses in most countries foreign markets because out tax collection is only
to explore why these people absent fulfill the first act of justice, and will help 13% of GDP which is below the IMF benchmark
ordinary citizens know what is happening. of 24%.
themselves from duty. I have got an
Bagyenda, under the law, is entitled The surge of the expenditure in the forthcoming
opportunity to monitor service deliv-
to seek redress if and when she feels her budget would make one seem optimistic about
ery at different government aided
rights have been violated. But police should increase in service delivery in the future but much
schools and health facilities. The situ-
steer clear of fears and public perception of that will be for servicing debt accrued from the
ation there is so alarming. previous fiscal year (2017/2018). Another huge
There are limited and in some cas- that they are being used by the official to
intimidate and gag the media, whose only chunk is to meet recurrent expenditures majorly
es no staff quarters which means staff salaries in government Ministries, Departments,
have to trek long distances from their “crime” is exposing alleged illicit enrich-
ment. In democratic and technologically and Agencies and sub-national governments.
homes to the service centers, they Economics theory informs us that there are
feed poorly at work, coupled with developed societies the media is an effec-
tive weapon in exposing corruption. usually pro-cyclical fiscal tendencies with Debt to
very meagre pay, overwhelming GDP ratios. As the GDP increases like for the case
number of patients for health work- Police should remain professional, neu-
tral and handle with utmost integrity and Uganda (our GDP rebounded to 5.5% from about
ers, and pupils in schools who study 4% in the last quarter of 2017), countries are most
on empty stomachs, with no proper regard to public interest which we think
overrides the merits of Bagyenda’s com- likely to go into the market to borrow thinking the
infrastructure to enjoy teaching and economic outlook is good. When things fail, they
plaint in so far as the public has to know.
studying. These challenges force pub- remain stuck with soaring debt levels.
We also urge the Inspectorate of Govern-
lic servants to look for other ways of To sum it up, debt is only good if it translates
ment together with the Uganda Police to
survival like riding ‘boda bodas.’ into public investments in productive assets like
follow up and thoroughly investigate the
I wish the money the British gov- human capital, roads, airports, railways, ports and
allegations as published by the media hous-
ernment money used to purchase es against Bagyenda. We salute the gallant more. These have a multiplier effect – they will
the biometric machines was used to men and women of the press for their fear- generate money that will help sustainably repay
contribute towards staff well-being. less contribution, within the confines of the the debts incurred. However, using debt to service
I believe there would have been a law, to the continued struggle of a corrup- loans and pay salaries is not prudent finance and
reduction in absenteeism. tion free country. exacerbates the dependency the debt.
Lilian Zawedde Senteza Cissy Kagaba, works with the Anti- Ronald Ochen
Transparency International Uganda/ Corruption Coalition Uganda Economics Researcher
Information/Communication Officer ochenronald@gmail.com

8 June 01 - 07, 2018

 The Last Word Opinion

Inside the Rwanda-Arsenal deal

By Andrew M. Mwenda
How ignorance and stupidity combined to make the
UK press hostile to a highly profitable sponsorship

L
ast week Rwanda and Arsenal, an we can project that the deal with Arsenal All European football clubs are spon-
English Premier League football will triple these visitors in three years. sored by someone, often large corpora-
club, signed a $40m sponsorship That will give Rwanda 4.5 million visi- tions. On the chest of every T-shirt of
deal for three years. According to tors and revenues from tourism worth every football club is the logo of a spon-
the deal, a “Visit Rwanda” logo will be em- $1.2 billion. Surely investing $40 million soring corporation. Surely even an igno-
blazoned on the left sleeve of all first team, to earn an extra $800 million is one of rant journalist knows such corporations
Under-23 and Arsenal Women’s shirts be- the highest rates of return on investment are not “wasting” company revenues
ginning with the new season this summer. anyone can get anywhere in the world. and shareholder value to spend millions
Many people were impressed because Even if we cut this by 50% it still remains of dollars in sponsorship. They do it to
the country is selling itself as product and a high rate of return. promote their brands. So why would
branding itself like a private enterprise. Secondly, increasing tourist visitors Rwanda’s appearance on the Arsenal
However, sections of the British press has a direct impact on the incomes of the T-shirt be any different?
have been denouncing the deal. They poor, whom sections of the British press What Rwanda and Arsenal have done
claim President Paul Kagame (who sup- claim are disadvantaged by this deal. is a first of its kind. It is the first sleeve
ports Arsenal) spent $40m on “his club” As early as 2007 when Rwanda adopted sponsorship I have seen in European
– as if the money is a gift to Arsenal the policy of targeting high end tour- football. Indeed it may open new and
without any quid pro quo. The British ists, the Overseas Development Institute huge revenue streams for clubs in
government gives Rwanda $85m annu- and SNV did a study on the impact of Europe and beyond as countries and
ally in foreign aid. So this deal became tourism on the incomes of the poor. The companies seek to advertise themselves
part the policy debate on aid: why study looked at where the poor partici- on sleeves. I would imagine many coun-
should a country that spends $40m on pate in tourism and tried to estimate the tries that want to promote themselves as
sponsoring an English football club con- cash flowing to them. They found that investment and tourist destinations will
tinue to receive British aid. an influx of 17,000 upmarket tourists borrow something from the Rwanda-
A section in the regional talking heads generates $1.5 million as income for poor Arsenal deal.
on social media argued that Rwanda households in Kigali – that is to say the More critically, Rwanda was previously
is “wasting” $40m sponsoring a rich semi-skilled and unskilled workers, food known globally for its 1994 genocide
English football club when its citizens producers and artisans. against the Tutsi. Now it is widely recog-
are poor. It is true Rwanda is still a very The people who work in hotels where nised as the leading reformer in Africa.
poor country. It has one of the lowest tourists stay as waiters and waitresses, But this is only in circles of those who
per capita incomes in the world – sitting cleaners, cooks, bartenders, front desk care (or think) about Africa i.e. in policy
on the bottom 20 countries. Over 30% etc. are beneficiaries of the tourism circles. The deal with Arsenal positions
of its population live in poverty. But is industry because their incomes are the country differently as a place to visit
spending $40m to advertise itself on a generated by tourism. Farmers whose and have fun. Is this repositioning using
T-shirt of a major European football club food produce is purchased by hotels are a popular sports club not worth $13mil-
a waste of money? among the poor. This is not to mention lion dollars a year?
Let’s look at the facts. Rwanda wants to the crafts industry that sells its products The kind of vitriolic attacks I read
promote itself globally as a tourist desti- to tourists and even donations tourists from the usual suspects in sections of
nation. How do you attract customers to make. Rwanda needs to earn foreign the British press only demonstrate that
your product or visitors to your country? exchange to import many of the things some people have a malicious agenda
The first step is to create top of mind it needs and currently tourism is the to undermine Rwanda’s progress. That
awareness about your existence among largest foreign exchange earner. So what for such people, the bias that nothing
targeted segments of the global popula- is wrong with the country investing $40 good comes out of Africa is so deeply
tion. Now the Arsenal T-shirt is seen 35 million in an activity best positioned to entrenched that even good deals are
million times per day around the world. promote it as a tourist destination? given a satanic spin.
Arsenal has the largest fan base of any I do not like ad hominem debates, and I The inference that if Rwanda gets finan-
English football club on the African dislike arguments that pit Africa against cial assistance from the British govern-
continent. It has an even larger fan base the “racist West.” But I find it difficult to ment it must lose her independence to
around the world. Thus, placing “Visit believe that anyone of the critics in the decide what it good for the country and
Rwanda” on the sleeves of its T-shirts British press would fail to see the value its people is depressing to say the least.
gives the country a lot of visibility and of Rwanda’s investment in this sponsor- If there is anything to learn from the
has great potential to entice many people ship of Arsenal. If the benefits are this vitriolic attacks in the Daily Mail and in
to visit the country. obvious, what really could have led sec- The Independent of the UK (certainly not
Why does Rwanda need more and tions of the British media and some poli- this one), it is that Africa needs to stop
more tourists visiting it? In 2017 it got 1.5 ticians in continental Europe to denounce accepting aid from the West.
million visitors and earned $400m from the deal if it is not racism combined with
tourism. Holding many factors constant, individual ignorance and stupidity? amwenda@independent.co.ug

June 01 - 07, 2018 9

cover story

Kidnappers
Why police is catching them now
By Ronald musoke
Rose Nakisekka, a 17-year old student was kidnapped on May 10. Her
body was discovered on May 14 in Nalumunye near Kampala. Her
father had negotiated her ransom from Shs10 million to Shs1 million
which he paid. But the kidnappers had already killed the girl.
Days later, police arrested three of the kidnappers, including a
witchdoctor named Ali Ddumba Ali. A combined force of police and
military intelligence personnel linked the group to the murder of another
girl, Brinah Nalule, a student of YMCA Buwambo campus.

10 June 01 - 07, 2018

N
cover story
alule was kidnapped at In one case, for example, when on
Old Taxi Park at around May 17, 24-year old Doreen Nsimire
7pm on May 6 as she - a waitress - left home in Nakiwogo
headed back to her near Kampala and did not return, her
hostel after spending brother reported a case of suspected
two days at the home kidnap to police in Hoima. When
of a pastor, one Ronald Wambuzi, in police started investigating they found
Namwezzi, Mbikko Town Council she had eloped with a boyfriend.
in Buikwe District. Her kidnappers Still in May, police in Kibuku
wanted money that her parents did District, eastern Uganda, arrested
not have. The kidnappers had used three people suspected to be involved
her mobile phone to demand the in the kidnapping of a 24-year-old
ransom which the parents could not woman, Norah Nakoma on May 20.
raise in two days. Her badly mutilated She was found abandoned near River
body was recovered in Kibaawo Zone Mpologoma along Mbale-Tirinyi
in Mutundwe, Lubaga Division. It road. The suspects included Maria
later emerged that Pastor Wambuzi Kadondi Goretti, 50, the victim’s step
was linked to the kidnappers. He is in mother, Moses Kiirya, 32, and Fabian
jail. Wabulwa, 23, both step brothers to the
Around May 24 Police in Mbarara victim.
arrested three men suspected to be On May 25, Christine Nabasumba,
kidnappers. Late Suzan Magara 25, a mobile money agent in Busega,
They were identified as 60 year-old was feared kidnapped. Her father’s
William Kikukula, 58-year old Naboth worst fear appeared confirmed when
Musinguzi, who was masquerading on May 27 she called him saying
as a catholic priest, and 30- year old her kidnappers wanted a ransom of
Bonny Omara. They had grabbed a Shs10 million. He immediately alerted
fuel pump attendant and tied him up police. Barely a few hours later, on
but he managed to escape and tip the May 28, the police called him to say
police. Their motive was not clear and they had found his daughter – in a
their accomplice escaped. nearby guest house. She had faked her
On May 19, police arrested police own kidnap to get money from her
constable John Kalume and Moses father.
Mukiibi over the kidnap of one Before that, police had arrested one
Michael Kisinga from Bwaise Growers. Amina Mirembe after she made phone
They demanded Shs2 million as calls to her boyfriend James Mugoda
ransom from his wife who reported claiming she had been kidnapped
the matter to police. They use a by two men who were asking for a
tinted van. It later emerged that the ransom. She later told police that she
victim was a robber and the trio was had faked her kidnap to test whether
wrangling over a deal gone bad. her boyfriend could pay a ransom as a
Police on May 21 released a report sign of his love to her. He did not and,
showing it had recorded over 80 instead, alerted police.
cases of kidnap between March and Late Brinah Nalule But the bigger question people are
May. That is almost one case every asking is why, it appears, the police
day. Although the report covered the and other investigative arms of the
whole country, most of the cases were state are scoring more and credible
in central Uganda and in or near the arrests of criminals recently? Until
capital, Kampala. recently, kidnappings in Uganda
But at least 60 of the cases recorded were rare compared to countries like
turned out to be false alarms and self- Nigeria and Mexico but Police says
kidnaps. Of the 20 serious cases, eight the crime has risen over the last three
resulted in death. That is about three years.
deaths every month and a severe spike
from the normal. Over three years, Technology tracks criminals
from 2015 to 2018, police had recorded From the analysis, it appears
48 cases of kidnap. several factors are at play including
But in January and February, Police structural and operational changes in
recorded 28 kidnappings, compared the operations of security agencies,
with 24 in the whole of 2017 and three including changes in their leadership
in 2014. In February alone, six people and increased cooperation and mutual
were reported as missing following sharing of intelligence information.
kidnaps. The other, it appears, is increased
Police say many of the kidnaps are reliance on technology.
crimes of passion or relationships Before the current wave of arrests,
gone sour. Some are business deals police had made some arrests. On
gone bad. A few are what police called Christine Nabasumba faked her kidnap March 1, for example, they arrested
“utter criminality.” two men; Godie Kasenya and Sam

June 01 - 07, 2018 11

cover story
Mugula in connection with the authorities and probably someone is information on all SIM cards in its
kidnapping of children for ransom. In benefitting from this mess”. database.
one case the eight-year old boy was Jones wonders why criminals are But Bbosa of UCC told The
recovered. requesting for mobile money yet the Independent that it was wrong for
That was at the height of a major authorities seem to struggle to find people to imagine that the mandatory
police hunt for killers of Suzan them. SIM card registration should have led
Magara, the 28-year old daughter of a “How hard is it to trace the points to increased security.
prominent businessman whose body from which it (mobile money the “When you say Simcard registration
had been found a day before at Kajjansi criminals demand) is withdrawn or is going to curb crime that is a fallacy,”
in Wakiso District. Magara went services that it pays for?” asked one he said, “It can probably help in the
missing on Feb. 07, and was murdered Jones. investigation of crime.”
by her captors even after a ransom was Following Magara’s kidnap and Bbosa says SIM card registration
paid. murder in February, then-Minister of was meant to enhance the integrity
But several experts have told The Security, Lt Gen. Henry Tumukunde, of national security systems and
Independent that the government has told mourners that he was sorry that that security agencies and the
access to `location software’ which government security agencies failed to telecommunication companies already
security agencies can use to trace rescue her. had existing identification features
where any call is coming from. Some of “We plead guilty to the death of which help in arresting the kidnappers.
the technology is based on cell towers Magara because I know we could He said every genuine phone in the
which telephone companies install to have saved her but we failed to track world has that unique number and it
enable mobile phones exchange signals the kidnappers because they were uses that number to communicate.
and these are what security agencies too sophisticated,” Tumukunde told “When a phone is communicating
base on to track criminals who use to the network, it uses that number
mobile phones. for communication, meaning you can
In the Bugolobi area of Kampala always know which phone is calling,”
city, for example, one will access at Ugandans need to he said.
least three cell towers when making He added that every Simcard comes
a mobile phone call. Using a system be ready for large with a serial number which is unique

scale phone and

called triangulation; an operator is able to a Simcard called an International
to tell where one is calling from with a Mobile Subscriber Number (IMSN). It

CCTV tracking if
margin of error of about 250 metres. is this number that officials registering
“They can extrapolate the Simcards attach to one’s registration

crimes related to
coordinates you are using to portfolio.
communicate with your cell towers Bbosa says mobile phone companies

phone use are to

by using a phone-like device which also have identity registers in their
they can actually use to trace you even systems which identify active phones,

be stopped
if you are in the market,” Ibrahim those on roaming, and those that are
Bbosa, the Manager for Consumer blacklisted as stolen or otherwise.
Affairs at the Uganda Communications “This is an area which is handled by
Commission (UCC) told The the security officers and mobile phone
Independent on May 22. operators,” he said, “The fact that
Some IT savvy individuals like Jude the system is this much sophisticated
Mukundane who debated the issue means the system is capable of
on the online IT platform (I-Network) tracking these criminals.”
say the towers can narrow down one’s Bbosa told The Independent that the
location with an error of margin as low UCC’s jurisdiction does not include
as 50 metres. tracking criminals.
“You would not believe how much “UCC’s role is to enable the process,
information mobile networks have to make sure a system is registered to
on individuals,” Mukundane said, “It a person, a person who is identifiable
is clear the police are not working as in the national registry, such that in
closely with the telecom companies as case you are tracking a particular
it should.” number, you know where to start.”
Another IT expert, Green Mugerwa, “If somebody kidnaps a victim using
told The Independent that he could a mobile phone for communication,
not understand why the Uganda the intelligence personnel should be
Police, the National Identification able to apprehend the criminals given
and Registration Authority (NIRA) the existing call data records and
and telecom companies and the UCC registration details.”
have not collaborated before to nail mourners at her burial in Kitoba,
criminals using mobile phones. Hoima district. Copycat crimes?
“I have come to think that they President Yoweri Museveni soon When asked to comment,
do not know how, have refused to after issued an order that no person Luke Oweyesigire, the Kampala
correlate available data, or there is should be sold a mobile phone or SIM Metropolitan Police Spokesperson
simply no data bank at all,” he said. card unless they present a national told The Independent on May 28 that
For Emma Jones, failure to arrest identity card issued by NIRA and their analysis is yet to arrive at any
criminals can only happen when UCC came under increasing criticism conclusions.
there is “plain negligence from the for failing to track the criminals using He refused to be drawn into

12 June 01 - 07, 2018

 cover story
describing some of the cases as what Some cases of recent crimes
can be called copycat crimes; that
is crimes committed by people who
copy another recent crime. The police March 31: Two brothers
agree with the general perception— were arrested for allegedly
that the upsurge in kidnappings kidnapping a four-year-
rose following the kidnap of Suzan
Magara. Oweyesigire said, however,
old girl, RestyKahunde, a
the police are keeping as open-minded daughter of Beatrice Kahunde
as possible while carrying out its and Samuel Mugenyi.
investigations.
“Where the investigations lead March 19: AramazanKibirige,
us, we shall go,” he said, “Whether
it is kidnap for ransom, kidnap
of Kagoma in Nansana
for sacrifice, and self-kidnap, we Municipality, Wakiso District,
are willing to investigate it to its was kidnapped and killed
conclusion. when he was going to buy
“It is true, most of the cases are self- hardware items worth Shs73
kidnaps but that should not divert us IGP Martins Okoth Ochola million.
away from real cases,” he said.
But Paul Nyende, a senior lecturer yourself for someone to love you. You
of psychology at Makerere University just have to develop skills in attracting March 24: Charity Kyohirwe,
told The Independent on May 28 that affection; you just have to be lovable a resident of Masajja Parish
what is happening seems to be a and affectionate yourself,” he added. in Makindye Division, was
“transformation of crime” with some But James Makumbi, a software kidnapped and found killed
people appearing to be following the developer told The Independent on May
kidnap models that are reported. He 24 that Ugandans need to be ready for
after missing for a few days.
said, as psychologists, they call this large scale phone and CCTV tracking Police said she was allegedly
“behavioural example.” if crimes related to phone use are to be kidnapped and killed in a
“There are people who will look stopped. mission masterminded by her
at those kidnap experiences and try “If we want such tracking to happen, husband.
to make a living out of them,” he we need to close our eyes to large scale
told The Independent, “Some people tracking and also brace ourselves for
have decided to use this kidnap the abuse of such immense power and April 5: Elizabeth Nakato is
phenomenon as a behavioural example privilege,” he says. kidnapped and killed on April
and have developed a business model He said based on the reactions 5 by her relatives. Her body
that they are now using to extort of many people when the police is found dumped in Matugga
money from others.” and other government bodies at the border of Wakiso and
Nyende told The Independent that proposed tracking of phones under
the media could also be playing a the Regulation of Interception of
Luweero districts.
role in fanning the recent spate in Communications Act of 2010, no
kidnappings across the country. telephone network wanted to be April 14: Police arrest
“The media tends to expose ordinary known as an enthusiastic collaborator five people for allegedly
people to things that they don’t with police on phone tapping. kidnapping a two-year-
know,” he said and recommended He said the telecoms also insist old child in Kitezi, Wakiso
limited exposure of nasty and detailed on maintaining separate databases
reports of crimes to the general public. but that is part of the problem. District.
Nyende says while most kidnaps According to him, the situation around
target rich families, it is noteworthy kidnaps would not have escalated April 27: Abel Katende is
that Ugandan criminals are now if the telecom firms had reached an kidnapped from his Masuulita
asking for very small ransoms. understanding on collaboration a home and his body recovered.
“They have brought it to their few years ago when UTL, MTN and
level so that it applies in their the police had an understanding that
environment,” he said. if one’s phone was stolen on either May 7: Businessman
Nyende said poverty is a factor network and police were informed, SaakaKafeero is kidnapped
in crime because when people one’s phone could be found easily if it as he heads to Mukono
are poor and frustrated but also joined the other network irrespective Municipality to bank some
have an insatiable appetite to of the Simcard. money. He was killed.
consume, they can also be drawn “A third network which was having
into criminal behaviour. He added, growth problems refused to sign
however, that such people need to that memorandum of understanding May 21: 27-year old woman,
be what psychologists call “problem because they did not want to chase Grace Kyosimire, was arrested
personalities.” away phone thieves who were buying in Kampala for allegedly
“We can all be poor but there are their Simcards to use in stolen phones,” faking her own kidnap over
those amongst us who would resort he said. Makumbi says there is need
to crime; and probably it is what is to find a balance if criminals who use
accumulated debts.
happening at the moment,” he said. phones are going to be caught.
“You also don’t have to kidnap

June 01 - 07, 2018 13

rwanda

Africa’s war on corruption

Ambassadors mark 2018 African Anti-Corruption Year
By Julius Businge is Africa’s analyst for Transparency Inter-

A
national, said several countries are already
frica should reverse the trend consistently pushing back against corrup-
where six of the 10 most corrupt tion and with notable progress.
nations on earth are from the con- He said, in fact, some African countries
tinent because it impedes inclusive score better than some countries in the
growth and social transformation. Organisation for Economic Co-operation
That was the message from Frank and Development (OECD) in corruption
Mugambage, the Rwandan High Com- indices. He mentioned Rwanda, Botswana,
missioner to Uganda at the event to mark Seychelles, Cape Verde, and Namibia which
‘Africa Day’ on May 25 in Kampala. score better on the Corruption Perceptions
Mugambage, as Dean of African Group Index (CPI) that some OECD countries like
of Ambassadors in Kampala, led the 16 Italy, Greece and Hungary. In addition,
African Group of Ambassadors and High Botswana and Seychelles, which score 61
Commissioners in partnership with the and 60 respectively, do better than Spain
Uganda’s Ministry of Foreign Affairs to at 57. Banoba said the trend shows there is
organise a public lecture on corruption at hope for Africa in the fight against corrup-
International University of East Africa Audi- tion.
torium in Kampala. Ruhakana Rugunda Uganda’s Prime Minister Ruhakana
The African group of ambassadors and Rugunda, who represented President Yow-
high commissioners spoke under the theme eri Museveni described the event’s theme
of ‘Winning the fight against corruption; a as ‘pertinent’ for Africa’s efforts aimed
sustainable path to Africa’s transformation.’ at achieving the objectives of the African
Mugambage reminded participants that Union’s Agenda 2063 and the global 2030
2018 that has been declared by AU policy Agenda for Sustainable Development as
organs as the `African Anti-Corruption well as Uganda’s Vision 2040.
Year’. The aim is to offer an opportunity to He said in his speech that the continent
countries to consolidate gains in the fight loses over US$50bn annually through cor-
against corruption and enhance regional ruption and illicit financial flows.
and international cooperation in dealing “This is a substantial hemorrhage of
with corruption. Mugambage said it is resources that would be used for develop-
unfortunate that six of the 10 most corrupt ment,” he said.
nations on earth are from the continent. He added that the African Union
“We should also reverse the current Member States have adopted regulatory
trend,” he said. instruments and established institutions to
Rwanda is the current Chair of the Afri- combat corruption including the AUCPCC,
can Union and Mugambage said his coun- adopted in 2003, in addition to other instru-
try was willing and determined to partner ments aimed at promoting democracy,
with all African leaders in the fight against Frank Mugambage good governance and the rule of law.
corruption. However, he said the challenge remains
At the level of the AU, Mugambage said Facts about Africa Day in ensuring that institutions mandated to
the requisite legal and policy frameworks fight corruption function without fear or
notably, the African Union Convention on favour to punish the culprits and foster a
Preventing and Combating Corruption  On this 25thMay, the Organization of culture of abhorrence for corruption.
(AUCPCC) have been put in place. African Unity (OAU), the predeces- He said that many of the beneficiaries
The Convention has currently received sor to the present-day African Union of the illicit flow of resources are found
39 ratifications and increased impetus is (AU) was born beyond the continent and thus winning
required to be able to achieve universal rati-  The establishment of OAU led to the the fight against corruption requires
fication. Mugambage said more needs to be liberation of the African continent concerted action at national, regional and
done to ensure that implementation of the and that is why this special day is international levels.
Corruption Convention is enhanced at the also known as Africa Liberation Day He said Uganda is committed to
member state level. (ALD) ensuring the legal instruments including
He said Rwanda is looking forward to  This year also marks the 60thAnniver- the Anti-Corruption Act, the Public
multi-sectoral engagement with all actors, sary of the First Congress of Indepen- Finance Management Act and the
dent African States that was held in
including national anti-corruption agencies, Leadership Code are effectively applied.
1958 in Accra, Ghana that gave birth
parliamentarians, civil society organiza- “I would like to stress that the future
to Africa Day. It was this Pan-African
tions, the media, law enforcement agencies, of Africa is brighter now than ever
Congress that laid the firm founda-
judiciaries, women and the youth. before,” Rugunda said.
tion for the establishment of the OAU
While commenting on corruption in
in Addis Ababa on May 25, 1963.
Africa on another forum, Paul Banoba who

14 June 01 - 07, 2018

 rwanda

2018/19 budget
Rwandans expect more funding for job-creation
initiatives, SMEs support programmes
By John Mbaraga not access bank loans, making it hard for This will also boost people’s income, he

A
them to engage in value addition. says, adding that more money should also
s Minister of Finance and Eco- “With access to loans, firms will be able be allocated to infrastructure development,
nomic Planning Dr. Uzziel Ndagi- to improve their production processes and including water supply and electricity con-
jimana prepares to present next products as well as increase capacity to nectivity.
2018/19 financial year budget produce more to sustain market needs,” Mutarambirwa is hopeful the govern-
parliament, Rwandans want more funding says the maker of carpets, bags, sandals and ment will increase the budget for activities
to be allocated to the health sector and the fabrics. The entrepreneur says fund should that will help create more jobs for the youth.
Made-in-Rwanda initiative to create jobs also support SMEs to enter into new and “They should consider allocating
and spur national growth. better markets. increased budgets for sectors that will sup-
Ndagijimana is expected to read to the Leather maker, Emmanuel Abarikumwe, port job-creation efforts, like Kigali Employ-
nation the expanded budget proposals owner of Talon Minutes Limited, which ment Service Centre and entrepreneurship
for the coming financial year that rose to makes shoes, is optimistic that government projects, to reduce unemployment among
Rwf2.44 trillion compared to Rwf2.115 tril- will allocate some money to support leather young people,” he says.
lion this fiscal year, according to the budget tannery, saying his company sometimes Aime Sandrine Uwambaje, the executive
framework paper (BFP) and the midterm finds it hard to get materials for his prod- secretary of Gikondo Sector, Kicukiro Dis-
budget estimates for 2017-2018/2019 pre- ucts. He says the firm imports all materials trict, is happy will the proposed budget for
sented to both chambers of parliament at used in shoe making from Kenya. activities planned at sector level.
the beginning of May. Government will “We wish the government could con- “The budget is allocated based on
fund the biggest part of the expenditure struct a factory that makes leather products planned activities in different sectors, like
totaling over 67%, while donors will add because leather imports are making our good governance, economic development
16%. shoes very expensive,” he says. This, he and social welfare,” she explains, adding
says, affects business growth and ability to that all activities that were planned in four
People’s expectations expand or become competitive. pillars that guide government expenditure
Gloriose Umutesi, the founder of Shal- Francois Mutarambirwa, a university are well catered for, but if more activities are
lon Fashion, an SME that makes and sells graduate, wants the government to increase planned, then budget should be increased.
handicraft products, says government funding for areas that support the well- It now remains to be seen if Ndagiji-
should consider putting in place a fund to being of people, including agriculture. mana’s budget that is scheduled for reading
support makers of Made-in-Rwanda prod- “Such interventions will help to reduce before parliament in early June will answer
ucts. Umutesi added that most producers; poverty since the agricultural sector these concerns.
especially small-and-medium enterprises employs the majority of Rwandans,” he
(SMEs), lack development finance and can- says.

June 01 - 07, 2018 15

news analysis

Wreckage of the Gaagaa bus in Kiryandongo district

Gaagaa: Bus to hell?

After May 25 accident in which 22 perished,
company’s record on the road is under scrutiny
By Independent Reporter Gaagaa buses, which ply the north- treatment at Anaka Hospital after

T
western route from Kampala to Arua sustaining injuries when a Gaaga
he May 25 accident involving and Nebbi and the Kampala-Burundi Company bus overturned on the
a Gaagaa Bus, a tractor, and and Kampala-Kigali routes, contribute morning of December 12, 2017 at Wii
a beer truck in Kiryandongo significantly to the accident toll, Anaka village in Purongo Sub-county.
along the Gulu-Kampala including the following 12 incidents The bus travelling from Koboko
highway in which 22 passengers died and accidents: to Kampala was carrying about 60
and 14 suffered serious injuries has passengers. The police said the bus
been described as one of the deadliest May 25, 2018: Gaagaa bus kills overturned while avoiding a head-on
in Uganda in recent years. In a sign of 22, injures 14 collision with an oncoming truck.
the gravity of the accident, President
Yoweri Museveni ordered three days The accident involving a Gaagaa May 14, 2017: Gaagaa bus kills
of national mourning starting Sunday Bus, a tractor, and a beer truck in one, injures several
May 27. The next of kin of the dead Kiryandongo along the Gulu-Kampala
were also awarded Shs5million each highway in which 22 passengers died One person died and several others
by the government and Shs3million and 14 suffered serious injuries has were injured in an accident involving
each for the injured. been described as the most serious a Kampala-bound Gaagaa bus at
The Kampala-Gulu highway is ever and led to an unprecedented Iririzabu along Arua Nebbi Road.
very accident prone and contributes three days of national mourning. According to police, six passengers
a sizable percentage to the more March 09, 2018: Several injured as were seriously injured and 10
than 9,500 people who have died on Gaagaa bus is involved in an accident passengers got minor injuries.
Ugandan roads in 2015 and 2017. at Pakwach check point. The bus was
A 2017 UN report found that road heading to Arua from Kampala. August 18, 2014: Gaagaa bus
accidents cost Uganda US$1.2 billion overturns, driver killed
every year or 5% of GDP. Costs December 12, 2017: Gaagaa bus
include treatment of accident victims, overturns, 12 hospitalised The fatal bus accident on August 18,
investigation of the accidents, and 2014 occurred when a Kampala-bound
damage to vehicles and property. At least 12 people received Gaagaa bus attempted to overtake two

16 June 01 - 07, 2018

 NEWS ANALYSIS

buses that were also heading towards an eyewitness, said the driver of Four people died and at least 36
Kampala at Nakasongola along the the bus was speeding. Police traffic others sustained serious injuries when
Kampala-Gulu highway. The bus investigators attributed the accident a Gaagaa bus they were on overturned
brushed one of the other buses as it to speeding and driving in the middle at 10:30 pm on the Kampala-Gulu
tried to avoid an oncoming bus on the of the road. The Transport Licensing highway at Kakandi between
driver’s side. Board suspended the operating licence Wabigalo and Sasira trading centres in
of Gaagaa Bus Company. Nakasongola district. Police said the
August 15, 2014: Seven Dead, driver was speeding, which made it
many injured in Gaagaa bus January 23, 2011: Gaagaa bus impossible to control the vehicle after
accident kills 10 the tyre burst.
collision
At least seven people died and At least 10 people were killed after January 2010: Gaagaa bus
20 others were critically injured in a Kampala-bound Gaagaa bus they overturns, one dead
an accident involving two buses were travelling in knocked a cow and
plying the Kampala-Gulu highway rammed into a truck near Kafu Bridge In January, a passenger died
that afternoon. Scores also sustained on the Kampala-Gulu Highway. The when a Kampala-bound Gaagaa bus
injuries. The accident occurred at accident that happened at around overturned at Katalemwa in Wakiso
Wabigalo village near Nakasongola 2:30am also left 34 people seriously district. The driver missed a turn and
town when a Gaagaa Services Bus injured. the vehicle veered off the road injuring
rammed into a KK Coach which 38 people.
was attempting to overtake another August 13, 2010: Explosive found
vehicle. The KK bus was heading to on Gaagaa bus May 14, 2008: One dead in
Paidha while the Gaagaa Bus was Gaagaa bus crash
destined for Kampala. An eyewitness An explosive device was found in a
blamed the accident on a Gaagaa bus Gaagaa bus on the evening of August One person died and several others
driver who appeared impatient and 13, 2010. The bus was traveling from were injured on May 14, 2008 when
was allegedly speeding. Arua to Kampala and the explosive a Gaagaa bus heading to Arua from
was discovered at a Uganda Revenue Kampala, overturned on the Karuma-
January 09, 2012: Gaagaa Authority checkpoint at the Pakwach Pakwach road at Pachagu village,
bus accident kills six, licence Bridge. It was hidden in a first aid box about 3km from Pakwach bridge.
at the entrance to the bus. Godfrey Police said the bus was descending
suspended Babalanda, the officer in charge a slope when the tyre burst in a
Six people died on January 09, of Pakwach Police Station, says a corner. After losing control, the
2012 in an early morning accident passenger alerted the authorities about driver attempted to jump out but the
involving a Gaagaa bus and a truck the device. bus overturned and crushed him. A
at Kalule village, Luweero District, survivor, Yusuf Kavulu, blamed the
on the Kampala-Gulu Highway. The July 24, 2010: Gaagaa bus crash on high speed and a mechanical
bus rammed into a stationary truck accident kills four fault which the driver ignored.
at around 4:30am. Apollo Aluma,

June 01 - 07, 2018 17

NEWS ANALYSIS

DP President General Norbert Mao (L), former party president Kawanga Semogerere (M) and
another official at the DP reunion at Makerere University on May 23.  INDEPENDENT/ JIMMY SIYA

DP reunion excites
event is an indicator of the behind
the scenes organisational jostling,
including with the government.
But Mao was clearly relishing

party faithful
having former party leader Kawanga
Semogerere who was at the helm of
DP from 1980 to 2005, and erstwhile
opponents within the party like Samuel
Lubega Mukaku, who was chairman
But what worth is short-lived excitement of the organising committee, former
acting Secretary General of the party
without strategic value? and former Buikwe MP Lulume Bayiga,
former MP and leader of splinter
faction Michael Mabikke of the Social
By Ian Katusiime Mao had promised that key figures Democratic Party (SDP), DP vice

M
to attend included Nelson Chamisa, president and MP in the East African
akerere University Rugby president of Movement for Democratic Legislative Assembly (EALA) Fred
Grounds in Kampala was Change (MDC), a major opposition Mukasa Mbidde, and MPs Muwanga
on May 23 a sea of green party in Zimbabwe, Kenya’s opposition Kivumbi, Medard Segona, Mathias
and white, the colours leaders and former Prime Minister Mpuga, and Robert Kyagulanyi. In
of Uganda’s oldest political party, Raila Odinga, and Klaus Schuller attendance also were leaders from
the Democratic Party (DP). The of the Christian Democratic Union other opposition parties, including
highly anticipated reunion had many (CDU), a party in the German coalition Mugisha Muntu; former president
anticlimaxes, including the failure of government. But they did not show up. of the biggest opposition party – the
invited foreign dignitaries to the event. Klaus Schuller, in fact, arrived in Forum for Democratic Change (FDC)
But that did not stop the host, DP the country and was received by Mao and Abed Bwanika, president of the
President General Norbert Mao from at Entebbe Airport two days to the Peoples Development Party and former
basking in the unusual show of unity. reunion. That he did not attend the presidential candidate. The last time

18 June 01 - 07, 2018

 NEWS ANALYSIS

DP supporters at the reunion  INDEPENDENT/ JIMMY SIYA

leaders who have been supporting cryptically that Mao should abide by
other parties and candidates should DP’s principle of truth and justice.
withdraw their support and rally “Right now it is within the mind of
support for DP. It was a pointed barb at Mao as to when we shall have the next
known DP leaders like Lukwago who delegates’ conference. There is no clear
was away campaigning for the FDC roadmap,” he said. Earlier, Nambooze
candidate in the Rukungiri Woman MP had also told The Independent that Mao
by-election as the DP reunion neared. should ensure that DP’s institutions,
Spoken at what was organised as including the National Council
a gathering of DP’s youth wing; the and parliamentary caucus meet as
Uganda Young Democrats (UYD), scheduled.
Mao’s message had added resonance. Nambooze and Lukwago’s focus on
UYD has been the base of some of the the next delegates’ conference is an
Mao had attempted to host anything most vibrant opposition politicians in indicator that they sees it as a forum for
close to this was in 2015, when he Uganda including Mao and his nemesis challenging Mao for the DP leadership.
was part of the so-called Democratic Lukwago and many current and former In a sign of fights to come, Bwanika
Alliance. party leaders. who is a three time presidential
Back then, the bulk of the DP Mao and other DP members accuse candidate caused a bit of a stir when
leadership opted to stay away. A few Lukwago of abandoning the party even he uttered a line that Mao dreads –
of them still stayed away this time; though he has stood for the position linking DP and Buganda. Bwanika
including self-avowed Mao opponents of Kampala Lord Mayor on the DP said Buganda is DP’s traditional base,
Kampala City Lord Mayor Erias ticket twice. Lukwago has spent the and that its members are to blame for
Lukwago and Mukono Municipality better part of his time as Lord Mayor their own stagnation. He reasoned
MP Betty Nambooze who is the DP strategizing with Besigye on how to that Buganda and DP had failed to
vice president for Buganda region. But fight the government of President capitalise on the strategic location of
Mao happily rolled with the excited Yoweri Museveni which they deem a Buganda and the huge population of
crowd present. Although, he did not dictatorship. Mao has also criticised Baganda, the largest tribe in Uganda, to
speak much, his message was clear – he Besigye’s brand of politics saying capture power.
wants to be on the ticket at the next it is not any different from that of An alumnus of UYD, Bwanika
presidential election. Museveni. was key in organising the event and
“DP should stop being the reluctant Speaking days after the event said DP should do more to realise its
party and provide leadership for the Lukwago took issue with Mao’s potential.
multitudes that hunger for change in rallying call and said the event should Based on the salvos fired at Mao,
Uganda,” he told an excited crowd, not have criticised former FDC leader including the accusations of abuse
“DP should unite and form the nucleus Kizza Besigye who is Lukwago’s of power structures and muzzling of
around which an opposition coalition political godfather. party organs, it is not clear how much
can be built.” “The message coming out of Mao gained or lost from this event.
Clearly he was looking at the Makerere is that you can see people Commenting on the event, however,
meeting as a launching pad for ganging up against Dr Besigye. The some political analysts and members
strategising on how to get out of the focus is on how Besigye is a stumbling of other opposition parties said it was
shadows as just another opposition block to some of these leaders,” he no more than a rally that would only
party and possibly capture power. said. He further accused Mao of generate short lived excitement.
He added that the many talented DP undermining party principles and said

June 01 - 07, 2018 19

NEWS ANALYSIS

The debt challenge

to African growth
It is essential that countries chasing development move
debt sustainability to the top of the policy agenda
By Abebe Aemro Selassie

S
ub-Saharan Africa is confronting
a pronounced rise in public debt.
At the end of 2017, average public
debt in the region was 57% of its
GDP, an increase of 20 percentage points
in just five years. While this is well below
the peaks of the early 2000s, the current
spike is concerning.
(See Chart 1)
Government borrowing to finance
public investments is an essential part
of any country’s macroeconomic toolkit.
Over the last two decades, countries
in Sub-Saharan Africa have used this
option often, greatly improving human
development outcomes as a result. For
example, between 1990 and 2015, average
life expectancy increased, infant mortality
rates were halved, secondary school
enrollment soared, and infrastructure
gaps narrowed. These and other gains
would have been impossible without
pragmatic spending of borrowed
resources.
But this progress could be jeopardised
if current debt trends in some countries
continue. Africa’s increasing public-debt
burden means higher interest costs,
which divert resources from education,
health care, and infrastructure. Therefore,
government debt must be reined in.
According to our most recent Regional
Economic Outlook for Sub-Saharan
Africa, six of the region’s 35 low-income
countries (LICs) are in “debt distress,”
meaning they are unable to service
external commitments. A further nine
LICs are classified as being at “high risk
of debt distress.”
In the broadest sense, three factors
account for the current debt challenges.
For starters, the region’s commodity
exporters, and particularly its oil
exporters, were hit hard by the 2014-2016
slump in prices. Africa’s lost output and
associated debt increases are comparable
to the experience of advanced economies
following the global financial crisis.
Today, eight of the region’s fifteen debt-
troubled LICs are commodity exporters.
(See Chart 2)
Additionally, most countries that

20 June 01 - 07, 2018

 NEWS ANALYSIS
have funded development revenues. In most cases, there
and infrastructure through is potential to raise revenue
borrowing have failed to by 3-5 percentage points
generate sufficient additional of GDP over the next few
tax revenues to repay that years. Reaching this level will
debt. In many cases, countries require broadening the tax
have not been effective at base, streamlining exemptions,
capturing the return on their and strengthening the
investments through their tax administration of value-added
systems. tax.
(See Chart 3) Third, efforts should be
Finally, in many Sub- made to account for off-
Saharan countries, portions balance-sheet risks, improve
of the debt build-up can debt-management capacity,
be traced to shocks in the and enhance data coverage of
migration of liabilities – such debt and debt exposure.
as losses by state-owned And, fourth, governments
enterprises – to the public- must improve prospects
sector balance sheet and for private investment. For
exchange-rate depreciations. decades, public expenditures
In a handful of countries, offset low levels of private
poor governance can also be investment. But, faced
blamed for unsustainable debt with growing public-debt
practices. vulnerabilities, it is unclear
As we have been saying for how long this trend can
some time, if governments continue. Sub-Saharan
stick to their medium-term Africa’s economies should
fiscal-consolidation and orchestrate a transition from
reform plans, debt levels public to private investment
should stabilise or decrease, by strengthening regulatory
alleviating debt-related and insolvency frameworks,
challenges. However, the increasing intra-African trade,
required adjustments have and deepening access to
been delayed repeatedly, credit.
owing to political constraints, Sub-Saharan Africa’s
social pressure for much- public-debt burden has not
needed development yet hindered investment
spending, and favorable demand. On the contrary, as
external financing conditions. a measure of GDP, foreign
This is a recipe for long-term financial flows to Africa are
pain; there is no scope to higher than those to emerging
delay the adjustment any markets, and they come from
longer. As countries work a broader range of sources.
to meet their development So-called frontier economies
goals, it is essential that they have issued record levels
move debt sustainability to of sovereign bonds, while
the top of the policy agenda. bilateral creditors, like China,
But how? continue to invest heavily.
For this to happen, four But, as we have seen
key areas will need special recently, capital flows are
attention, depending on fickle, and if Sub-Saharan
country circumstances. Africa is to take full advantage
First, in resource-intensive of the current global economic
countries, especially the upswing, policymakers
region’s eight oil exporters, must tackle public-debt
fiscal consolidation plans vulnerabilities head-on while
must be enacted without they can. Doing nothing will
delay. This should be coupled only constrain the region’s
with economic diversification, tremendous potential to
for which the recent recovery achieve sustainable and
in commodity prices provides inclusive growth.
wider scope.
In much of the rest of the Abebe Aemro Selassie is Director
region, the required fiscal of the African Department at the
adjustment is more modest International Monetary Fund.
and can be achieved through Copyright: Project Syndicate,
steady increases in tax 2018.

June 01 - 07, 2018 21

interview

When lions, elephants attack

Craig Packer, professor of ecology, evolution, and behaviour at the University of Minnesota
and Director of the Lion Research Centre recently delivered a paper at the 2018 Dawkins
Award Lecture at Oxford University titled, “The Conservation Conundrum in Africa: Why can’t
Wildlife Pay its Way?” In an email interview, he explained to The Independent’s Ronald
Musoke how Uganda and other African countries can lessen the conservation challenge.

One way African countries like Uganda disrupt any remaining wildlife migration
raise revenues from conservation is and would also reduce access to critical
through trophy hunting. What is the ratio- water sources by pastoralists. Instead, there
nale behind trophy hunting? are a number of conflict-reduction projects,
Most of Africa’s protected areas are like “Lion Guardians,” that work with local
unsuited for mass tourism – the landscape communities to improve livestock husband-
does not lend itself to the same sort of wild- ry practices by protecting against potential
life spectacle as the Serengeti or Murchison lion attacks.
Falls. So instead, the land may be better
suited for sport hunting, where a handful of You suggest that it is probably high time
visitors pay large sums of money to shoot big donors came on board to protect the
a small number of animals. However, the big conservation areas on the continent.
economics of sport hunting rarely match How is this supposed to happen?
the rhetoric of hunting advocates. The First, we need to raise awareness of the
appropriate trophy fee for shooting a lion scale of the conservation crisis in Africa – it
should be high enough to contribute about is simply too large to be solved by the usual
$1 million to the management of the hunt- NGOs. With awareness by the range-state
ing block. But trophy licenses for shooting officials, international organisations like the
Why do you think Uganda and other Afri- lions typically cost only about $25,000 – only World Bank, USAID, GEF, among others,
can countries are facing what you refer to about 2.5% of the necessary funding. Con- could be approached with formal requests

F
as a conservation conundrum? sequently, hunting blocks in many parts of for help in building fences, for example, or
or nearly a century, Africa’s national Africa are being abandoned because they enlarging Park staffs.
parks and game reserves have been are no longer profitable.
expected to raise enough funding You also recommend making conservation
from photographic tourism or sport The recent killing of 11 lions and the more profitable by African governments
hunting to cover the management costs of mauling of a game ranger’s child by a outsourcing management of neglected
wildlife conservation. However, the true leopard in Uganda’s Queen Elizabeth Na- conservation areas. Where has this been
costs of protecting animals are far higher tional Park prove that conserving wildlife pioneered and how has it worked?
than the revenues from tourism. This is is becoming very costly yet tourists are not Eco-philanthropists operate individu-
particularly problematic when Africa’s paying enough to see these iconic animals ally and through organisations like African
parks are home to such dangerous animals in their natural habitat. Why has this mod- Parks to raise the necessary management
as lions and elephants that are capable of el failed over the last 100 years? costs from western donors. These also
harming the lives and livelihoods of rural Only a few parks generate significant maintain tourism activities in the reserves
communities. In western countries, park tourism revenues, and these successful that they manage which generates revenue
budgets are covered by tax revenues rather destinations must share their income with for the governments and for local com-
than entrance fees. But Africa suffers the the remaining parks in the same country; munities. This management model is now
highest levels of poverty in the world, so tax it is difficult to alter the entrance fees, as found in Benin, the Central African Repub-
revenues could never cover these expenses. ecotourism is just one option for a traveling lic, Chad, Congo-Brazzaville, DRCongo,
family – why not go to Disneyland if travel- Kenya, Malawi, Mozambique, Rwanda,
In your paper you suggest that between ing to a game park becomes too expensive? Tanzania, Zambia and Zimbabwe.
1920 and the 1960s, the conservation equa- We also know that sport hunters are not
tion was about, “wildlifepaying its way” willing to spend a million dollars to shoot Shouldn’t countries like Uganda use the
but, between the 1960s and 2010s, it be- a lion. land to support humans instead of main-
came, “wildlife must pay its way.” Explain taining thousands of square miles to con-
what you mean by this? What would you suggest is the best way of serve wildlife?
At the beginning of the 20th Century, managing the ever growing human-wild- Countries like Uganda are going to need
Africa’s human population was so low that life problem in countries like Uganda? all the help they can get to cope with the
it seemed conservation would be relatively Where a park is bordered by farm fields, coming wave of humanity. Although wild-
easy, and very few rangers and wardens the best solution is to install an elephant- life may not pay its own way, it nevertheless
would be required. By the era of Africa’s and lion-proof fence to protect neighbour- generates considerable tourism revenue
independence in the 1960s, the human ing communities from crop damage, live- and provides much-needed employment in
population had grown, and the priorities stock losses and risks of man-eating. This rural areas. So, protect your parks, maintain
of the new nations focused on advancing tactic is widely employed in southern Africa the diversity in your economic portfolio,
the welfare of their citizens – so wildlife and is becoming increasingly common in and do not be afraid to ask for help from
would have to pay for itself if the parks and Kenya. However, if the park is bordered international agencies!
reserves were to be perpetuated. by livestock grazing areas, fencing would

22 June 01 - 07, 2018

Insurance market beckons
with huge opportunities
Increase in uptake of medical, agriculture and infrastructure
policies to drive premiums upwards in 2018
By Isaac Khisa 2017 performance According to the Africa Insurance Barom-

U
According to IRA-U, the industry regis- eter 2017, African insurance premium vol-
ganda’s insurance market is prom- ume dropped from Shs262.6trillion in 2014
ising as industry players project a tered a 16% growth in insurance premiums
to Shs737billion last year, up from Shs to Shs240trillion in 2015 as many key Afri-
12% growth in insurance premi- can currencies, such as the Egyptian Pound
ums to Shs825bn in 2018. 634billion 2016. In 2016 premiums were
recorded at Shs611billion. and the Nigerian Naira weakened against
This is nearly triple the amount of pre- the US dollar in 2015 and 2016.
miums earned in seven years ago though The 2017 growth was supported by
increased uptake of policies for agriculture, Of the Shs240trillion, South Africa
less than Kenya’s Shs7.2trillion and South accounted for Shs172trillion (72%) of the
Africa’s Shs 172trillion. medical, infrastructure development proj-
ects and innovations geared towards devel- total African insurance premiums – making
Ibrahim Kaddunabi Lubega, the chief it the largest players on the continent – as at
executive officer of the Insurance Regula- opment of customer-centric products.
Out of the total gross written premiums, the end of 2015.
tory Authority of Uganda (IRA-U) said on Other dominant markets include Moroc-
May 28 that the projected growth in insur- non-life insurance constituted 70% (Shs
516bn), life premiums 22.86% (Shs168bn) co, Egypt, Kenya and Nigeria, with the top
ance premiums will be driven by increased five [markets] accounting for 85% of total
uptake of agriculture, medical, infrastruc- while Health Membership Organization
constituted 7.135% (Shs52.5bn). premiums.
ture, oil and gas insurance policies as well Of these five, Kenya grew fastest in 2015,
as widened insurance distribution channels. Growth in Gross underwritten premiums achieving a compound annual growth rate
“The insurance industry is expected to of slightly more than 10% from 2011 – 2015.
800
grow further in 2018,” he said. “Enhanced “Insurance uptake is still very low in
compliance in respect to marine insurance 700 Africa due to a high poverty rate and a lack
by importers into the country, development of capital and expertise within insurance
Gross Premiums Underwritten (Shs bns)

of micro-insurance products and distribu- 600

companies that would help tap into the
tion of insurance through commercial banks market,” the report reads in part.
and mobile technologies will drive growth 500
It adds: “The lack of effective and trans-
of the industry.” parent legal, judicial and regulatory systems
So far, 10 commercial banks have been 400
in combination with immature financial
offered licenses to operate as bancassurance markets and the common usage of informal
300
agents since November 2017. types of insurance – such as local safety
Meanwhile, in the area of agriculture, 200 nets based on transfers from relatives and
it is expected that the popular Kungula 2011 2012 2013 2014 2015 2016 2017
friends rather than services of regulated and
product which was launched in 2013 by a Source: IRA
Year
supervised formal insurance – contribute to
consortium of 10 insurance firms, target- the low penetration.”
ing crop, livestock and fish farmers will Specific industry profits The report, however, notes that a number
be the silver bullet for its growth. Already, However, industry’s non-life underwrit- of factors support the outlook for a boom-
statistics show it has attracted 59,146 farm- ing profitability reduced by 14% from ing African insurance market – a very low
ers countrywide as at the end of March this Shs12.4bilion in 2016 to Shs10.7bn in 2017 insurance penetration rate means high
year. This has been supported by govern- due to the increase in claims payouts. growth opportunities and potential.
ment’s decision to unveil a Shs5billion sub- The gross claims paid for both life and Also, the continued growth of interna-
sidy, two years ago. Also, government was no-life including HMOs increased by 11.7% tional investments on the continent as well
and continues to be a major client through to Shs291billion while the industry’s net as shifting demographics, changing cultural
development projects among them is ongo- asset base increased by 15% to Shs474bn norms, and increasing urbanization and the
ing construction of 183MW Isimba and the during the same period under review. declining influence of the extended family
600MW Karuma Hydropower Dams; the Uganda has 20 non-life and nine life as a source of informal insurance are likely
Standard Gauge Railway and the USS$1bn insurance firms, one re-insurance and five to accelerate insurance sales further, the
(95km) Jinja-Kampala Expressway. health membership organizations. report says.
Another hope is in the oil and gas sector The average insurance penetration
where insurance players are eying opportu- Beyond Uganda rate for Africa is 6%, which is higher
nities. It is anticipated that investments in Uganda’s 2017 good performance come than Uganda’s (0.73%), Kenya’s (3.4%),
the region of Shs56trillion-75trillion will be at the time Africa’s insurance premium is Tanzania’s (2.3%) and Rwanda’s (1%). The
made in the next two-four years ahead of oil underperforming due to a combination of EAC’s low penetration rate means more
production in 2023. factors. work for sector players.

June 01 - 07, 2018 23

business

A housing estate in Kabowa, Kampala.   INDEPENDENT/JIMMY SIYA

Boom or bust in Uganda’s

property market?
What experts say about real estate prospects
By Julius Businge Generally, there is high demand for low scenario he describes as very good.

F
income housing estates in most parts of the In terms of property prices, Musiime said
or some time now, there have been country, according to industry players. that sometime in 2014 when there were high
two views on the performance But other reports portray the industry expectations about oil production and less
of Uganda’s real estate industry: as one in ruin. Uganda Bureau of Statistics political activity, price for prestigious office
‘Doing well’ or ‘struggling’. (UBOS) abstract report for FY2016/2017 space (premium) went up to US$20-21 per
Those advancing the view that the shows that the activities in the real estate square meter.
industry is doing well base on the new industry are estimated to have grown by However, Musiime said supply has
high-rise buildings coming up in most 5.6% during the year. since been going up albeit at a slower
of Kampala’s hilly and high end areas as This growth however is lower by 0.5 pace explaining the current decline in the
well as the thousands of residential and percentage points from the growth of 6.1% average price per square meter for premium
commercial buildings throughout the registered in the previous year. And the office space to around US$16-18.
country. share of real estate activities to total GDP However, he said that demand for low
It is on this basis that The Independent tried was 4.5% in 2016/17, lower than the 4.6% in end office space has been growing in
to find out activities in the country’s real the previous year. the last five years because of many small
estate industry and discovered a few issues. Reduced industry growth means reduced businesses opening shop.
The latest state of the economy report by income to property owners, reduced This, he says, has led to a surge in their
Bank of Uganda and Ministry of Finance opportunities related to employment and prices from an average of US$6 in 2014/15
indicates that from January – November rental tax going to government coffers. to around US$8 per square meter at the
2017, the real estate industry which moment.
comprises building, construction, and Players, expert views He added that the high interest rates for
mortgage attracted the largest share of In an interview with The Independent mortgages quoted in the region of 15% and
credit from commercial banks accounting on May 28, John Musiime, the facilities above is not supporting faster growth of the
for 21%, beating other borrowers in manager and real estate analyst at UAP industry.
the areas of trade (20%), personal and Properties Uganda, said the industry has Going ahead, he argues that government
household loans (18%), agriculture (13%) been showing positive trends in the past needs to implement policies that would
and manufacturing (12%). five years regarding demand and supply of decongest the city and see companies or
Real estate is currently dominated by property. businesses take up space in other suburbs.
the private sector investing in residential He said however, the industry is This, he said, can be done by ensuring
estates, office blocks and in medium size performing well with occupancy levels there is peace and security, reliable supply
shopping malls. currently reported at between 70-80% - a of utilities like water, electricity and

24 June 01 - 07, 2018

 business
Quick sector facts constraints which include low or stagnating
growth in household incomes, general
 Theindustry’s contribution to GDP rise in cost of doing business, lukewarm
is about 5% economic growth, and conservative
 The industry does have big investment and spending by economic
residential estates buyers.
 Majority of the residential houses He said Uganda’s formal real estate
have been put up by individuals industry is still in its infancy and that there
mainly for rental purposes are many asset classes, transaction types,
 A number of office blocks  have been financing models and other aspects of the
built in various areas around the city industry’s value chain that players are yet to
 Most of the buildings in the Central introduce into the local market.
Business District are being converted Like Kongai, Mukembo said that
into medium size shopping malls favorable legislative support is critical for
 There is only one bank which is the industry to contribute to economic
specialising in mortgage finance – growth given its interconnection with
Housing Finance Bank financial institutions, construction materials,
 There is a lot of demand for low logistics, manufacturing and utility sub-
income housing estates sectors.
 The number of players are still too “Given overall growth in effective
few and  many of them small demand in these related sectors, we can
 The conducive environment has deduce that the real estate industry is
attracted foreigners to buy houses generally growing albeit with some sluggish
other infrastructure like roads. In the next and settle in Uganda subsectors,” he said adding, “We have
five years, Musiime said the industry’s  Provision of low cost housing in observed a steady rise in properties for
performance will be determined by two Urban and semi urban areas auction dating as far back as 2012 – it is not
major factors – activities in oil and gas  Provision of construction uncommon to count over 50 advertised per
industry, and peace and security. equipment and manufacturing of weekover this financial year.”
The latest market report update from building materials He said, this scenario however, is not
Knight Frank Uganda, a real estate necessarily symptomatic of issues within
consultancy firm released in January 2018, the industry; instead, it is likely indicative
says the property market in Uganda has behavioral patterns in the community and of general strain in the economy given these
not recovered to its past glory but it is more quickly lead to economic growth in that properties being auctioned were pledged as
stable and less volatile than it was two years area. Banks, schools, hospitals and other security for credit facilities.
ago. social facilities will soon be set up,” Kongai “The net effect however, is an increase in
It added that many of the factors which explained.   supply of property on the market,” he said.
led to the slowdown of the industry leaving She cited Kampala as one example Meanwhile, Mukembo said they are
property investors exposed have been reined that has steadily grown and has a lot of observing a steady rise in supply of
in. investment taking place both by locals semi-formal and formal rental dwellings
“For example, prime lending rates have and foreign investors. “We have seen an across residential boroughs of the Greater
reduced significantly, the shilling though increasing number of modern housing both Kampala Area of Wakiso, Mukono and
still weak has remained stable, speculative commercial and residential with the city Mpigi districts as a result of rapid peri-
development of commercial property has expanding towards the suburbs,” Kongai urbanization.
reduced significantly and rental levels are said. He said the ongoing efforts to streamline
stabilising as office occupancy rates steadily and professionalise the industry like the
increase,” the report reads in part. Need for government support proposed Landlord/Tenant Bill and the soon
However, the firm cautioned government Going forward, Kongai said the industry to be introduced Real Estate Agency Bill is
on being quick to regulate the property needs support from the government in indeed good for growth of the industry.
market by offering knee jerk reactions to legislating laws that encourage growth in “These should weed out unscrupulous
complex and structural issues like the dollar the industry. actors and attract new investment into
versus shilling rental regime. “We need the industry regulated and the industry if done in keeping with
Despite the upbeat projection, the organized,” she said, adding that good international best practice,” Mukembo
consultancy says the landscape in Kampala planning and adherence to the laws further said adding, “I also believe the
faced a dramatic change in the second regarding urban planning should be sluggish economic context will improve
quarter of 2017 when Nakumatt stores enforced…zoning and coding should as we get towards and following first oil
closed, causing a dip in business and be encouraged which would promote and as the regional and global economies
consumer confidence. coordinated real estate growth where improve.”
Shirley Kongai, the president for residential, commercial, and industrial areas The prospects for demand and supply in
the Association of Real Estate Agents are properly marked.  the industry, in the medium to long term
– Uganda told The Independent that the She also said the sector needs a favorable are encouraging, he said.
industry is experiencing rapid growth and Landlord Tenant law in addition to fast He added that what is necessary for
therefore booming.  tracking the enactment of the real estate now is for players, especially developers,
However, she said that more attention agency and management laws to harmonise to form partnerships and collaborations to
needs to be focused on this industry as this real estate dealings. unlock innovations and realise economies
will definitely propel economic growth. Arthur Mukembo, the regional director of scale, streamline their operations and
“Put a good commercial building or real for RE/MAX, a property firm, told The source affordable credit. “There is a lot of
estate and infrastructure in a suburb and Independent that generally, the market money to be made in Uganda’s real estate
you will see how this will change the lives , remains robust and is evolving around its industry,” he said.

June 01 - 07, 2018 25

 Executive Style

‘New media hurting

radio industry growth’
Take us through your currently on traditional

M
management philosophy FM Radio, how can one
y philosophy create a podcast so that it is
is very simple- consumed on social media?
nothing gets These are some of the things
done unless we have to look at.
you work with people. I But overall the economy
have used it throughout in general is a challenge and
my career as a sales will continue to be a threat.
executive and a sales Issues regarding
manager and as a general regulatory environment
manager. You may have is another issue,
the best strategies, best demonstrated with the
plans, and best processes switching from analogue
but unless you have the to digital broadcasting,
right people whatever that all demands heavy
strategy you have will fail. investments. However, I
I believe in training and don’t see that happening
empowering people to in radio now but it could
ensure they deliver. happen. We have to be
mindful of that a lot.
What is the business
Peter Mungoma is the General Manager
outlook in the country’s of Capital FM – one of the first private Where do you see Capital
radio industry? FM radio stations in Uganda. He talked FM in the next ten years?
Radio industry is I see Capital FM
currently exhibiting to Ian Katusiime about the growth of the continuing to be the
traits of both growth and radio industry station and its threats. dominant station and
maturity – growth in the playing a key role in the
sense that it continues have certain parameters and proliferation of social media. entertainment landscape
to attract more players, aspects we use to determine All these have impacted on for Ugandans. I also see
and maturity in the sense the listening pattern. This consumption patterns of it continuing to be a key
that revenues seem to be gives us a better picture listeners. provider of information
relatively flat. This is a of how the audience is through exciting programmes
unique position for any evolving. What could be the threats like Capital Gang where
industry but also points to and weaknesses facing the people stay in tune with
the fact that radio doesn’t There is a general feeling radio industry in Uganda? what’s happening.
operate in isolation. It is part that creativity on air has Radio has more We will continue with
of a wider economy and died down in the present opportunities than threats our Corporate Social
therefore subject to forces times compared to 20 years because of the dynamics Responsibility (CSR) through
of demand and supply. The ago when there were about involved. Radio has been blood donation drives,
number of players in the four or five stations. What’s in existence for more than helping needy children in
industry is very big, with your comment on this? 200 years plus and has upcountry areas, proving
over 250 licensed stations It is not really creativity kept evolving. FM Radio is opportunities for people to
amidst declining advertising declining but a factor of slightly younger because it is learn about broadcasting.
revenue. This calls for change in the landscape. a new mode of broadcast so Obviously ten years from
creativity and innovation. During the era of only two it has more opportunities for now the landscape will be
radio stations, one could growth than for decline. different. We might have
What entails the research listen to only one radio What I see as a threat to a digital stream, we are
that goes on in the radio station from 8am to 8pm and radio is the current growth currently live streaming
industry? the emergence of FM radio of other media especially through the tune in app. I
That is a trade secret. We was a completely new thing. social media consumption. see us evolving to starting
have companies like Ipsos Over time, people have However, that is more of Radio on TV. It’s one of those
that do audience research transitioned to 200 plus radio an opportunity to tap into things fascinating people. I
for the industry in general. stations ranging from one the digital space so that think it will enhance the radio
However, we have our own national station to multiple the radio industry remains experience. We will gradually
research team that does our private radio and television relevant to the consumers. transition into that.
research based on what we stations broadcasting 24 For instance, if one has a
are trying to measure. We hours. There has also been a radio programme that is

26 June 01 - 07, 2018

 business
CSR HUMAN RESOURCE

CNOOC awards Hoima students UEGCL trains staff

C
The latest one-week training was held
NOOC Uganda, an oil and gas com- in Kampala from May 21-25 in partner-
pany has recognised and awarded ship with three entities – the United States
90 best performing Hoima District Agency for International Development
students at Primary Leaving Exami- (USAID), United States Energy Association
nations, Uganda Certificate of Education and and Power Africa and Chelan County.
Uganda Advanced Certificate of Education The company’s Chief Executive Officer,
under its Corporate Social Responsibility Eng. Harrison Mutikanga said during the
Programme dabbed “CNOOC Best Perform- closing ceremony that the training which
ers Award”. The programme was inaugurat- benefited over 20 staff was aimed at enhanc-
ed in 2012, with an aim of encouraging better Harrison Mutikanga (2-R), Minister Simon D’Ujanga ing capacity of staff in the area of asset man-
performance to the students in the district. (3L) alongside other officials addressing trainees. agement to be able to efficiently operate and

T
To date, the programme has rewarded 330 manage the hydropower facilities under its
students. he government agency responsible
management.
Aminah Bukenya, CNOOC Uganda’s for supervising the construction and
Simon D’Ujanga, the state minister for
senior public relations officer said a total of management of hydropower dams –
energy said trainings of this nature would
US$8,000 (Shs28.8m) was awarded to the Uganda Electricity Generation Com-
feed into the government’s development
best students this year. pany Limited (UEGCL) is optimistic that its
plans including a target of electrifying
Hoima district is currently experiencing staff will manage and operate hydropower
Ugandans up to 50% in the next three years,
rapid development in form of infrastructure dams currently under construction efficient-
up from the current 21%. Uganda currently
like roads; housing due to the ongoing oil ly upon completion.This follows a number
has approx.850MW as power generation
and gas activities and CNOOC officials of capacity building training programmes
capacity and is set to add more units from
believe supporting the education sector will it has undertaken locally and beyond for its
Isimba Hydropower (183MW) and Karuma
benefit the industry in years to come. staff in different areas.
(600MW) in the coming few months.

CSR INSURANCE

Airtel’s Ramadan campaign Insurers association in

A
s part of its corporate social of 23 other vulnerable mosques across the life insurance campaign
responsibility, Airtel Uganda is country.
giving food stuffs and related Balunywa added that the month
items to the Muslim community presents a special time for the company
now going through the Holy Month of to communicate and interact with
Ramadan. the community through its charitable
“The campaign is aimed at celebrat- programs. Meanwhile, the company has
ing this special time of the year with the announced similar offers to its customers
Muslim local communities,” said Ali Balu- that recharge a minimum of Shs500
nywa, the sales and marketing directors at through Airtel money. It said those that
Airtel Uganda. will do an e-recharge will receive free
The campaign that begun with a hando- 100MBs, 100SMS (Airtel to Airtel SMS) Miriam Magala

T
ver of food stuffs to the Wandegeya Mus- and 30 minutes (Airtel to Airtel calls) to be
he Uganda Insurers Association
lim community on May 18, targets a total used between midnight and 6am.
(UIA) will this September reveal the
impact of its campaign on encourag-
CSR ing Ugandans undertake life insur-
ance policies.
Coca-Cola excites Mukono, Jinja residents This follows the ongoing implementa-
tion of the association’s social media ‘digital
campaign’ running on UIA’s pages aimed
are residents of Mukono and Jinja who got at creating awareness and encouraging the
over 30 prizes. Company officials gave out uptake of life insurance amongst Ugandans.
six lucky consumers brand new Hisense 32 Miriam Magala, the outgoing chief execu-
inch TV screens in Mukono on May 26. Of- tive officer of the association said on May
ficials also gave out crates of sodas, soccer 24 that the new move would feed into the
materials including balls and other items efforts geared towards increasing insur-
to winners in Jinja town on the same day. ance penetration amongst Ugandans that
“We still have exciting prizes and money to is currently less than 1%. “By focusing on
hand over to our consumers...keep drink- life insurance, UIA will help families, busi-
Some of the winners displaying brand new ing and checking under the white crown nesses, employers and other parties to pro-
Hisense 32 inch TV screens. and we shall bring the prize to you,” the tect against a financial loss that occurs when

B
Coca-Cola Uganda Marketing Manager someone dies or is no longer able to work
everage giant Coca-Cola continues Maggie Kigozi, said. Meanwhile, over five for certain reasons,” Magala said adding,
to give out goodies to participants lucky consumers have already taken home through life insurance, Ugandans will get a
of its ongoing ‘Samba Ne Coca-Cola Shs4million and two others Shs10million cushion during their old age when their abil-
promotion.’ The latest beneficiaries each in the same promotion. ity to engage in productive work is minimal.

June 01 - 07, 2018 27

business

Finally, Centenary Bank

rolls out Visa Debit Card
BY Independent “Currently we have

A
176ATM’s, 64 Points of
fter more than Sale machines, phone
three decades banking through our
in operation, CenteMobile platform
Centenary and internet banking.”
Bank has unveiled Visa Customers will be
enabled debit cards, charged Shs3, 500 for
following the footsteps using Visa enabled
of other financial services compared with
institutions including Shs 1,500 for Interswitch
Stanbic Bank, Orient linked financial services
Bank, Barclays and and Shs 550 using
Julius Mukunda (M) CSBAG National Coordinator, and other staff addressing the Standard Chartered Centenary Bank’s ATMs.
press on the alternatives to the 1% tax on mobile money at their head offices Bank that have already This new development
in Ntinda on May 28. INDEPENDENT/JIMMY SIYA done so to enhance comes two months
customer’s convenience. since the bank unveiled
Fabian Kasi, the a mobile platform for
bank’s managing micro-loan application
director, said the new known as Cente Mobile
card that operates Loan.
using Chip and Last year, Centanary
Pin technology, is Bank’s net profit fell
in response to the 8.7% to Shs100.27bn
customer’s demands for the year ended
for a flexible payment December 31, 2017 citing
options anywhere, surging Non-Performing
anytime, in and across Loans (NPLs) and bad
borders. loans written off.
“Electronic banking At the moment,
started in 2003 when it serves more than
we acquired the first 1.4million customers,
ATM and we have been which is a third of
growing since then,” he the country’s banking
said. population.

Staff of Nile Breweries and Liquid telecom at the Innovation Village in Ntinda
during the launch of the Sustainability Challenge to source the most innovative
ICT solutions in Uganda.

Weekly share price movement (May 29)

Security May29 May 14 Movement
BATU 30000 30000 00
BOBU 160 150 6.7
CENT 1,422 1,396 1.9
DFCU 896 890 0.5
EABL 8,685 9,281 6.4
EBL 1,783 1,885 5.4
JHL 18,110 19,747 8.3
KA 365 412 11.4
KCB 1,727 1,849 3.0
NIC 19 19 00
NMG 3,843 3,993 3.8
NVL 450 460 2.2
President Yoweri Museveni, (in white) posing for a photo with Miss SBU 31 31 00
Tourism Busoga Ruth Kitamirike,(L) runners up Anita Mutesi (R) and UCHM 59 72 18
Peninah Nabirye(L) during the Tourism promotion of Kagulu rock in UCL 25 28 10.7
Buyende district on May 26.
UMEME 350 380 7.8
ALSI -- -- --

28 June 01 - 07, 2018

 comment
By Godfrey Mwesigye
Protecting data and privacy
Why Parliament should pass the Data Protection
and Privacy bill 2015 to end digital exploitation

T
he digital era, which has swept weak to protect the citizens who use the intends to protect personal data and the
across the whole world, is upon internet and other forms of electronic data. right to privacy through its provisions.
us as is evident in the numbers of Whereas, Article 27(2) of Uganda’s Consti- Section 4 (1) of the Bill, provides that
people who have switched from tution provides that no person shall be sub- before anyone accesses personal informa-
analog to digital. jected to the interference of the privacy of tion, the subject from whom data is col-
Ugandans, especially the youth, have persons home, correspondence or commu- lected must consent and Section 6 stipulates
incredibly embraced the scrolling of elec- nication, the country has no comprehensive that a data collector, data processor, data
tronic pages on their smart-phones, tablets, law to safeguard personal data. controller shall collect or process data in a
and other electronic gadgets. This dispen- There is a lot of room for exploitation of manner which does not infringe the privacy
sation has lured the older generation too the right to privacy in the absence of proper of the person to whom the data relates.
with a sizeable number of this demographic regulations on how personal information is Even in cases involving national security,
going digital. collected, processed or utilised in an appro- where personal information may be needed
We have integrated social media platforms priate way which respects the rights and the for investigations and prosecutions, those in
into our day-to-day communications and dignity of the subject from which the data authority can access the personal informa-
interactions using WhatsApp, Twitter, is collected. Worse still, some of the laws on tion as provided for in Section 7 subsection
Facebook, Instagram, and more to share the books, like the Regulation of Intercep- (2)(e)(i) of the Bill.
personal information and data. tion of Communications Act (RICA) 2010 Also important to note is that Section 3 (c)
Because of this, there are unprecedented which provided for interception of commu- of the bill provides that a data collector shall
volumes of personal data that are shared nications, can easily be used by the state to collect adequate and relevant data but pro-
across these platforms, and with telecom curtail people’s right to privacy. hibits the collection of excessive and unnec-
companies, banks as well as government. Over the last few years, there have been essary data. However, how to measure that
However, the questions we do not pause increased concerns of surveillance on polit- someone is collecting adequate, relevant
to ask are; who is in control of our informa- ical dissidents, journalists, and the human and not excessive or unnecessary personal
tion? Who can access it or how dangerous right defenders without their consent and data may be challenging.
can it be if our private data falls into wrong under no clear regulations. Nevertheless, the data collector or pro-
hands? The weaknesses in the existing legal cessor should handle it in a way that does
The safety of personal data and privacy framework concerning data and privacy not cause any harm to the subject from
has increasingly come under threat. For prompted the tabling of the Data Protection whom it is collected. For exceptions such as
instance, one of the most trending concerns and Privacy bill 2015 in Parliament, which collecting personal data in order to ensure
on social media is the leakage of nudes and national security, I strongly agree that this
revenge porn. Many of the perpetrators go should be handled still within the limits
unpunished yet victims are left devastated. of the law. For instance, there should be
In September last year, Action Aid Inter-
national offices in Uganda were stormed
In September a court order calling for that and the data
should serve only that purpose for which it
by unidentified security agencies, searched last year, Action is collected.
and some of their private information on In my opinion, if the bill is passed, it will
their databases was accessed. Most recently, Aid International create harmony where personal information
in March this year, the Uganda Revenue
Authority asked the commercial banks in offices in Uganda is protected and it can only be accessed as
stipulated under the law.
Uganda to send all the financial records
they hold on all Uganda’s banked popula-
were stormed by Way to go
tion. However, commercial banks under unidentified security It’s my humble plea that Parliament passes
their umbrella body Uganda Bankers Asso- the Data Protection and Privacy Bill, 2015,
ciation defied this order. agencies, searched considering the rate at which Ugandans are
and some of their
This brings us to the critical debate on per- switching to the use electronic media and
sonal data, communication, and the right transactions, to ensure the right to privacy
privacy.
private information is protected. The International Covenant on
Civil and Political Rights categorises privacy
Where is the problem? on their databases as a fundamental human right, ratified by
Currently, Uganda does not have a 167 countries Uganda inclusive.
comprehensive policy on data protection was accessed
and privacy. This leaves many; especially Godfrey is an intern at the Centre for Policy
internet users, vulnerable. Some potentially Analysis and a Student of Masters in Research
could end up being arrested and prosecuted and Public Policy
in Courts of Law. godfreymwesigye89@gmail.com
The existing laws in the country are too

June 01 - 07, 2018 29

comment
A Joint Commentary
Women4Women
Influential women in Uganda take charge
of the future of women in Uganda

C
reated by influential women untapped development potential.  By Susan Eckey describes, women’s
in Uganda, including educating girls and reducing teenage rights pioneers advocated for family
ambassadors, heads of pregnancy, Uganda would stimulate planning, child care services and
mission, directors and leaders, economic growth, improve welfare, political participation. The possibility
the Women 4 Women Awards aim create a more inclusive society, and for women to make decisions has laid
to promote women who will change reduce malnutrition and poverty.  Can the groundwork for their fulfillment
society and make gender equality a Uganda, or any country, afford not to in Norway. Women could participate
reality for Uganda and elsewhere. do that?” fully in the workforce, which has
Together, we will build a network of been a decisive factor in our economic
influencers to support each other and development. Women in Parliament
realize our full potential. have fought for women’s rights. 
Because the Norway now has its second female
world is a Prime Minister and the succession to
better place the throne has been changed to favour
Because it makes economic sense. when women the first born, regardless of gender.
For the International Monetary Fund are recognised.
(IMF) Resident Representative for This will be
Uganda, Clara achieved with
Mira, it is in more women The United
everyone’s in positions of Nations (UN)
best interest: power. It is a in Uganda
“When women long term battle, is building
do better, built on national capacity to
we all do heritage. enact and
better; women As the implement
inclusion helps Ambassador laws on gender
build stronger of Turkey equality and
societies. in Uganda, Sedef Yavuzalp says: support the
In fact, our “Each of our countries in one way empowerment
research or another have throughout history of women and
conducted at and at present contributed, built or the girl-child,
the IMF shows influenced gender equality values. nationwide.
that gender The Turkish women obtained their Rosa Malango, the UN Resident
equality is political rights to elect and be elected Coordinator, fully supports these
the right at national levels as early as 1934, initiatives, stating: “If you have
choice not only from a social and which was a decade or more before women leaders, they will be able to
justice perspective, but from a their counterparts in other modern make sure that there are women at
macroeconomic point of view.” nations. In present day Turkey, different levels of involvement. For
in recent years, 51 % of the top example wherever I am, I always try to
administrative positions in the Turkish lift up at least one or more woman.”
Foreign Service
Cristina E. are occupied by
Malmberg Calvo, women.”
World Bank Because women
Country Manager, are productive
concurs: “According for society when
to World Bank Because empowered.
research, by ending women’s “Women’s
child marriage rights go hand productivity is
today, Uganda could in hand with worth celebrating”
save US$2.4 development. explains Josephine
billion per year In Norway, as Kaleebi, CEO
by 2030.  This is the Norwegian of Junior
big money, and Ambassador Achievement

30 June 01 - 07, 2018

 comment

Uganda. ”Women are not only world. The U.S. aims to ensure that
natural multi-taskers, their all voices - especially those of women
resilience helps them thrive beyond - are represented in all aspects of life Do you know an extraordinary
potentially damaging experiences and development. woman who is making an impact in
and stereotypes. As mothers and Uganda? Are you a change maker
managers of the basic social unit yourself? Do you excel in arts,
-the family-, their achievements and academics, sports, business, defense
ability to breakthrough are indeed Because of rights? Do you break down barriers
worth recognition. What better way an educated and push boundaries in your field?
for women to recognise, celebrate and woman can
further support fellow women. ” make a bigger
impact: Dorothy
Okello, a Apply now for the Women4Women
Senior Lecturer awards on our Facebook Page: https://
Because women at Makerere www.facebook.com/W4WAwards
with good tools University Closing date for applications: 5th
and a strong and Director June 2018. Awards Ceremony: 19th
network will make of Innovation June 2018.
the most of it. The at Resilient
Women4 Women Africa Network, This is a joint article by the
awards are not is the perfect Women4Women Awards jury:
monetary. The example. She says: “Education is
awardees will be known to lead to better social and Clara Mira, Resident Representative,
offered mentoring, economic outcomes not only for International Monetary Fund (IMF),
coaching from women themselves but for their Uganda
experts, job families and community at large. In
opportunities, and addition, women in academia add to Cristina E. Malmberg Calvo, World Bank
cultural visits. As diversity in the solution space as we Country Manager
the Ambassador of seek to strengthen the resilience of
France, Stephanie our communities and nations at large Sedef Yavuzalp, Ambassador of Turkey to
Rivoal, says: “You get money and through evidence-based innovative Uganda
money runs out. You know how to solutions.”
obtain a loan or a grant by presenting Susan Eckey, Ambassador of Norway to
a strong business plan or your activity Uganda
in a good light and you will obtain
sustainable support and funding for Finally, Rosa Malongo, UN Resident Coordinator,
your ambitious enterprise.” because women Uganda
transform
society every Josephine Kaleebi, CEO Junior
day and do not Achievement Uganda
Because helping seek fame, W4W
women succeed is Awards will put Stéphanie Rivoal, Ambassador of France
the key to a just the spotlight to Uganda
and prosperous on Uganda’s
society. The unsung Deborah R. Malac, Ambassador of the
Ambassador of heroes. Sheikh United States of America to Uganda
the United States Radhiyyah
Deborah R. Namakula Dorothy Okello, Senior Lecturer at
Malac highlights: comments: Makerere University and Director of
“As successful “I honestly Innovation at ResilientAfrica Network
women, we have thank these great women of the jury
a responsibility to for championing this far-reaching Sheikh Radhiyyah Namakula, Secretary
help others realise award that can be contested for for Women and Youth Affairs, Uganda
their full potential. by any woman in Uganda. Fellow Muslim Supreme Council (UMC).
Women4Women Ugandans, I encourage you to grab
is just one small this opportunity to associate ourselves
way to contribute to strengthening with successful women and learn
Uganda’s network of women so that from them. This award is meant to
they can help one another succeed.” bring joy to the winners, hope to
The United States government is the participants and appreciation to
committed to empowering, educating, the viewers. As women, we may not
and safeguarding the future of girls change our past but let’s take charge
and women in Uganda and across the of our future.”

June 01 - 07, 2018 31

comment
By Silver Kayondo
Independent inquiry into Bank of Uganda
Why it could be an opportunity for regulatory feedback
and re-examination of the central bank’s mandate

R
ecently, the debate between Bug- tions in a final report released in September in 2016 to introduce agency banking, ban-
weri County MP Abdul Katuntu 2011. Among others, it proposed that cassurance, and reform the depositor pro-
and Budadiri West MP Nandala British banks should ‘ring-fence’ their retail tection scheme. There is an ongoing process
Mafabi concerning an independent banking business from their investment to amend the Bank of Uganda Act of 1993
inquiry into the statutory powers, gov- banking operations to safeguard against (as amended in 2000). However, these inter-
ernance, and decision-making process of riskier banking activities. It also made rec- ventions are piecemeal and inadequate for a
Bank of Uganda (BoU) has been on the front ommendations on enhanced bank capital rapidly evolving and increasingly intercon-
pages of the print media. It is not a unique. requirements and increasing competition nected sector.
In almost all cases of major bank failures, in retail banking. The Government adopted The role of any inquiry should not just
both locally and internationally, the man- these proposals and Parliament passed focus on re-visiting the recent Bank failures,
date of central banks comes under intense them in the Financial Services (Banking but also examining the regulatory and
debate and scrutiny. Reform) Act of 2013. supervisory/oversight tools and internal
In the UK, three notable bank failures In South Africa, the failure of Regal Bank capabilities available to BoU to exercise its
(Barings, BCCI, and Lehman Brothers) led in 2001 and African Bank in 2014 led to mandate. The terms of reference should
to inquiry into the mandate of the Bank of a deep inquiry led by former high court also include a section on proposals to pre-
England (BoE). The fall of Barings Bank judge John Myburgh which unearthed the pare BoU for regulation and supervision of
was caused by reckless futures trading by a rot in the corporate governance structures emerging trends such as fintech, cybersecu-
young trader, Nick Leeson. On February 27, and poor banking practices that led to the rity, blockchain and cryptocurrencies, open
1995, the then Chancellor of the Exchequer, bank failures. In fact, the failure of African banking, etc. Another issue for consider-
Kenneth Clarke announced that the Board Bank led to the 2015 amendments to the ation is crystallisation of bail-in (as opposed
of Banking Supervision of the BoE would South African Banks Act to give powers to to bail-out) instruments as a resolution or
conduct an investigation into the collapse. a curator appointed by the South African rescue tool for distressed financial institu-
The results led to the development of the Reserve Bank (SARB) to restructure the tions by BoU.
compliance framework for bank supervi- failing bank. It was eventually rescued. The Lastly, the existing composition and struc-
sion and regulation as we know it today. process also informed overhaul of the South ture of BoU should also be analysed. Most
In the case of the Bank of Credit and Com- African Banking financial regime to create jurisdictions are now moving to the unified
merce International (BCCI), failure was due the new Financial Sector Regulation Act of financial regulatory system. Under this
to phony loans, concealed deposits, undis- 2017. approach, there is one regulator overseeing
closed huge losses, and a host of dubious In the Ugandan context, the judicial com- the entire financial services sector (banking,
customers. In March 1991, the BoE hired mission of inquiry into the closure of Inter- capital markets, insurance and pensions)
PwC to carry out an inquiry into the bank’s national Credit Bank (ICB), Greenland Bank and setting the prudential standards.
collapse. On June 24, 1991, PwC issued the Ltd (GBL) and Co-operative Bank focussed Recent market trends such as bancassur-
report under codename “Sandstorm” (akin more on internal corporate governance ance justify the unified regulatory approach.
to Crane Bank’s “Project Nyonyi”) con- lapses. The report also stated that weak As the Global Financial Crisis demon-
firming that there was massive fraud and supervision by BoU was a secondary cause strated, systemic risk can arise from any-
manipulation that made it impossible to for the bank failures. Out of this commis- where. For example, AIG was not a bank,
reconstruct the bank’s financial history. sion, Uganda was able to enact the current but it had a pivotal role on the crisis.
However, when the British government Financial Institutions Act, 2004 (as amended The unified approach should also consider
set up an independent inquiry chaired by in 2016) and supporting regulations such as one dedicated body responsible for market
Lord Bingham 1992, it found that the BoE the Financial Institutions (Licensing) Regu- conduct supervision (consumer protection,
had not been robust enough in dealing with lations of 2005 and the Financial Institutions market competition regulation, etc). By sep-
bank fraud that led to the collapse of BCCI. (Corporate Governance) Regulations of arating the prudential standards oversight
The final report recommended more robust 2005. role from the market conduct supervision,
and intrusive regulatory controls against However, over a decade has passed BoU will be given more flexibility to enforce
banks that shrouded their operations and without a comprehensive review of the prudential rules, safeguard financial sta-
transactions in deep secrecy. The govern- banking sector’s legal and regulatory bility, and control the monetary and fiscal
ment accepted this report and adopted the regime. BoU has tried to make a number policy.
proposals suggested by the Lord Bingham of Post-Global Financial Crisis interven- A unified regulatory approach is also
Committee. tions; such as the enactment of the Financial in line with President Yoweri Museveni’s
Most recently, Lehman Brothers, which Institutions (Revision of Minimum Capital proposal to reduce the number of regula-
had been considered “too-big-to-fail” came Requirements) Instrument of 2010, in line tory entities to save on public expenditure.
crumbling under the weight of the 2008-09 with the Capital adequacy, Assets, Manage- Therefore, BoU should see this as an oppor-
Global Financial Crisis. The UK Govern- ment Capability, Earnings, Liquidity and tunity for regulatory feedback and re-exam-
ment appointed the Independent Com- Sensitivity (CAMELS) rating. BoU also ination of the Central Bank mandate within
mission on Banking (ICB) chaired by John issued the Financial Consumer Protection a rapidly evolving ecosystem.
Vickers, a respected British Economist, to Guidelines of 2011. In 2015, BoU enacted a Silver Kayondo is a lawyer with industry
consider reforms to the UK banking sector Financial Crisis Management Framework. expertise in fintechs, blockchain and AI.
as a whole. The ICB issued its recommenda- The Financial Institutions Act was amended Email: ks@ortusadvocates.com

32 June 01 - 07, 2018

Pilgrims in prayer at Uganda Martyrs Catholic Shrine in Namugongo.   independent jimmy siya

Martyrs day tests So why do they prefer to arrive

early?

faith – and health

Aboki says she comes early so that
she has enough time for spiritual
reflection and physical healing before
the main event. But, she says, she has
learned from past experience that the
place can become quite crowded and
Experts give pilgrims tips as celebration arriving early enables her to grab a nice,
comfortable spot.
happens amidst disease outbreaks “The first time I hardly had space to
stand and had to be admitted to hospital
when I returned home,” she recalls.

G
By Flavia Nassaka starting to walk here, I would fall sick Overcrowding, which has come to be
all the time but see I am fine, my legs a major characteristic of the event, poses
race Aboki arrived at the are fine too. All I need now is resting.” several challenges for the pilgrims,
Uganda Martyrs Catholic She lifted her loose-fitting Gomesi including health ones. According
Shrine in Namugongo, robe to expose feet without any hint of to Tourism ministry officials, up to
Kampala, on May 25. swelling usually associated with long three million people are expected to
With her three litre jerry- distance walking. converge in Namugongo this year, the
can tied firmly to her It was around midday and she was largest attendance projection ever. And
overfilling rucksack, the 64-year old soon moving to the registration office the health challenges could be worse
woman could still smile easily in spite which was already filling with queues this year because the celebration is
of having walked about 200kms in 19 of arriving pilgrims although it was happening amidst on-going outbreaks
days from Tororo, in Eastern Uganda, to still well over a week to June 03 when of Crimean Congo and Ebola;
the basilica. Martyrs Day celebrations would be hemorrhagic fevers that can kill in a
“This is my third time here,” she told held. matter of days, and cholera an equally
The Independent with a smile, ““Before tough infectious disease.

June 01 - 07, 2018 33

health
Dr. David Musoke of the Makerere Republic of Congo. carbohydrates to give the body more
University School of Public Health says The DR Congo has attracted attention glucose even after the pilgrimage
such crowds as are seen at Namugongo because of an on-going outbreak of because exhaustion from such journeys
are difficult to safeguard for health Ebola there. tend to uncover underlying illnesses,”
threats. He warns that any outbreak of The Public Relations Officer of the she says.
an infectious disease in such a gathering Ministry of Health, Vivian Nakaliika, Musoke also urges pilgrims to avoid
can become a serious public health told The Independent that the usual eating cold foods and endeavoring
crisis. He adds that the onus of staying screenings done at border points will to take only properly bottled drinks.
healthy rests on the pilgrims to protect be strengthened to ensure that any sick On the part of the organisers he says,
themselves and others. person is removed. amidst this cholera scare there should
The church as host, however, is Aloysius Tibikwise, a pilgrim from be ideal places for rubbish disposal and
preaching caution not fear in the face of Isingiro district says, unfortunately, toilets with running water.
any health threats. Martyrs Day organisers at Namugongo
Fr. Vincent Lubega, the Rector of the have not screened for diseases “save for Government
Catholic Shrine, says the organizers one time when someone was offering  Ensure foreign pilgrims are properly
have set up committees to ensure pills to pilgrims without asking if screened.
everyone is safe and several hospitals they were suffering from any ailment  Keep any suspected cases out of the
are on standby to provide necessary whatsoever”. country.
assistance if required. He says even Musoke explains this saying screening  Offer vaccination against some
minor issues like dehydration, and such large crowds for disease can be infections

Organisers
 Provide places for garbage disposal
 Provide toilets with running water
and soap

Pilgrims
 Avoid shocking your body. Before
walking long distance, exercise
regularly.
 Feed well, before and after pilgrim,
including lots of carbohydrates.
 Avoid cold food
 Eat hot meals and drinks
 Drink only properly bottled water and
beverages

Disease outbreaks among pilgrims:

From Nigeria to Mecca
To understand the outbreaks worry,
one might want to go back into the early
2000 when Mecca where Muslims flock
annually to perform pilgrimage made it
Pilgrims at Uganda Martyrs Catholic Shrine in Namugongo.  INDEPENDENT/JIMMY SIYA onto the infectious diseases radar with
the spike in numbers of pilgrims with
meningitis, an infection of membranes
of the brain and spinal cord. Later it was
swollen limbs and feet that they usually tough and practically impossible. discovered that it was spread through
record now have medicines and a “The doable thing could be for overcrowding. Since then, the Saudi
medical tent set up to cater for them. government to impose self-regulations government has made the meningitis
The Ministry of Health has ambulances for international pilgrims,” he says. vaccination mandatory and a requirement
ready and teams of doctors, nurses, and Mary Nalubega, a physician says for obtaining a Hajj visa. This one
a support team on site. These will wear conscious pilgrims could get vaccinated requirement is said to have helped control
bright reflector jackets so that anyone in against diseases like cholera if they can the international spread of the disease.
need of care can easily access them. afford to pay for them. Nalubega, who Also in 2005, new cases of polio
Lubega explained that in case of is also a pilgrim, says some usually go were recorded in Asia and the Middle
pilgrims arriving from outside Uganda, back home with a cold or a cough and East only for tests to show the
the Ministry of Health has deployed urges people to ensure that they do not strain was type that had circulated
at all border points to ensure that go back with something they should among the Muslim tribe of Hausa
every one coming in is in good health. have prevented. in Nigeria. That year many of them
According to Tourism ministry officials, For her, most of the challenges of had performed pilgrimage to Mecca.
up to 330 international pilgrims from sicknesses are caused by pilgrims After that incident, again the Saudi
Tanzania have confirmed participation, shocking their bodies yet to walk such government recommended that
110 from Malawi, 300 from Kenya,40 long distances one needs to have been pilgrims be vaccinated for polio
from Nigeria, 21 from Zimbabwe, 7 doing a bit of exercises. and then went ahead to offer oral
from Japan, 63 from South Africa, 12 “They need to listen to their bodies. polio vaccination at the airport for
from USA and 524 from the Democratic They need to rehydrate, eat more especially people from Asia.

34 June 01 - 07, 2018

 ART | BOOKS | SOCIETY | TRAVEL | CULTURE

Art master innovates

F
By Dominic Muwanguzi

red Mutebi is a master of wood

cut print with his unique tech-

with barkcloth
nique of progressive reduction;
where he works from light
to dark to produce artworks
that are usually startling and
vibrant.
His technique is traditional in the sense
that it combines storytelling to the wood Fred Mutebi’s eco-canvases preserve an
curving. This can still be seen in his latest
production “Mutebi’s progressive addi-
tional exploits with barkcloth” where he
ancient tradition using current techniques
works with bark-cloth; a traditional organic
fibre produced from Mutuba tree (Ficus as road-side sellers and subjects wearing an unlucky bride, but she still has hope for
natalensis). goggles as symbols of the visionary. better days. Such optimism is illustrated by
Mutebi’s unique contribution is to In the current exhibit, Mutebi’s narrative the leopard prints in the gown. The leopard
explore the value chain of barkcloth pro- focuses on the global political and social is naturally a patient and optimistic animal.
duction; including myriad processes, its scene, including exploitation of the Africa But the leopard or giraffe patterns and veg-
preservation, and recycling. He is mostly as a continent by the west. He metaphori- etation in the paintings serve a double pur-
driven by the prejudice that places the fabric cally uses the woman dressed as a bride, pose; suggesting environment conservation
among the satanic. He wants the craft of in a leopard pattern flowing gown. The and recycling.
traditional barkcloth making understood bride stands between two female figures Mutebis is a social critic who invokes
because it was a central fabric in his ancient that look on with an expression of concern. contrasts between the negative and positive.
Buganda Kingdom. The interpretation of this painting, `Bride’, is This makes his work palatable to all audi-
The artist adopts the technique of pro- that Africa has been raped by the west like ences without being interpreted as propa-
gressive addition that entails manipu- gandist. The “open entry” approach to
lating the fabric from thick to thin with his art allows universal inclusion. This
intent to create diverse textures of the unique characteristic is influenced by his
same fabric. He ends up showcasing a relationship with the local community
diversity of eco-canvases- (bark-cloth) from which he draws inspiration for his
on which he has painted figurative art. For this project on barkcloth, Mutebi
political-social narratives. He replicates worked with artisans of barkcloth from
the allegorical narrative that occu- his country home of Bukomansimbi,
pied his wood-cut print artworks, for Masaka district, in central region of
example when he looked at the sanita- Uganda.
tion challenge Kampala city faces using The artistic ingenuity and dexterity
marabou stocks; the giant scavenger that are emblematic of Mutebi’s art can
birds that were drawn to roam the be seen in his fusion of studio expertise
city because of uncollected garbage. with traditional aspects of art making,
To depict political injustice, corrup- the contextualisation of his art in the
tion, and kleptocracy, Mutebi carved global arena, and the creation of a
pot-bellied human caricatures feast- distinct identity for his craft.
ing while the populace is scouring for
crumbs of bread beneath the table. He The exhibit on Mutebi’s recent artwork is
tackled women emancipation (activ- showing at Afriart on 7th, located on 7th
ism) through the depiction of women street, industrial area, Kampala.

June 01 - 07, 2018 35

 Man who stole World Cup finally revealed!
The riddle of who stole Eng- of which being Reg’s son Gary. Scotland Yard’s biggest ever
land’s 1966 Jules Rimet World They nicked the World Cup manhunts and when the tro-
Cup trophy has finally been from Methodist Central Hall in phy became too hot to sell on,
solved after more than five Westminster, on Sunday March they decided to get rid of it
decades - with two gangster 20, 1966, months before England quickly and quietly. A week
brothers named as the men hosted the tournament, 52 years later, a dog called Pickles
behind the infamous heist. ago in June and devised a plan to wrote his name into history
Sidney Cugullere, an armed get hold of a ransom for the cup by finding it while out on a
robber, then aged 40, stole the demanding £15,000 from Chel- walk. Cugullere died of cancer
trophy alongside his brother sea and FA chairman Joe Mears. in 2005, aged 79, having never
Reg, claim three sources, one But the heist led to one of been collared for the crime.

Millionaire lines up Cobra man lets them bite him every Does more sex
2,000 women, lets week for immunity really improve your
kids pick his new wife ized he was special when memory?
54-year-old Konstantin at 14-years-old a cobra bit Research shows that sexually
Scherbinin, a Russian multi- him and instead of going active couples perform better
millionaire who made his to the hospital, he got on on memory tests in comparison
fortune in the oil business, is with his day as if nothing to their loveless peers. Kissing,
letting his children pick out his had happened. Most people touching, and doing the deed
next wife on a controversial would have died but not were seen as positive signs and
reality show called ‘Millionaire Joe. He spent the following indicator of a good, healthy
for Marriage’. The women years trying to become com- memory. But you’ve got to do it
are brought out in groups to pletely immune to venom regularly, says science.
stand in front of the young after suffering hundreds of The long-term study by the
Scherbinins for a few seconds, snake bites, some of which University of Wollongong in
while they look them up and landed him in hospital. When Australia, spanned two years
down and comment on their Joe’s blood was sent to the and looked at the lives of 6,000
appearance and age. Most of Joe Quililan, a young snake Research Institute for Tropical adults aged 50 and over, track-
them get rejected in a rather catcher from the Philippines, Medicine for analysis, results ing everything from their diet
brutal and humiliating fashion. has been dubbed “Venom confirmed that his antibodies to their sleeping habits. There
“What is she doing on this Man” for his unusual habit of can neutralise cobra venom. was overwhelming evidence to
show?” Scherbinin’s 16-year- allowing poisonous snakes to “This is the first time show that young people who
old daughter asked about a bite him every week and even that we found a person who engaged in sexual activity had
40-year-old candidate. “Dad injecting small quantities of can do that and had his better memories as they recalled
loves young and hot ones, I venom into his body in order blood tested,” said Eleonor things with better clarity. By old
think he’ll get bored with her.” to boost his resistance to it. Cervantes, a senior science age, there was no correlation
“You are not suitable for 31-year-old Quililan real- research specialist. between memory and sex.
us,” the millionaire’s other
daughter, 20-year-old Olga
told 6ft 2 inch volleyball player
Ekaterina. “Dad loved tall
Man runs 15,000 miles across the US to recreate Forrest Gump’s route
girls, but not that tall. You are If even the more than 19 London marathons,
not suitable for us, good-bye.” thought of running months running making it 600
Olga later commented: “I a marathon makes across the country marathons overall.
was very strict. We do not you feel tired, then and finally finished He’s also been
need freaks in our house.” spare a thought his incredible feat raising money for
The show has been criticised for Rob Pope. on 11 May. He the two charities
by Russian viewers for turning He’s a 39-year-old reckons to have run that he supports –
a show that is supposed to be marathon runner 15,607 miles in 422 the London-based
about love into a battle for a from Liverpool days, working out Peace DIrect and
sugar daddy. The millionaire who has just run at 37 miles a day – WWF. So far he’s
has reportedly been married more than 15,000 culminating in 24 raised £32,237 of
and divorced five times, miles across million steps. Oh, his £50,000 target
and had three other serious America to create and he also ran the (Approx. Shs2
relationships that didn’t work Forrest Gump’s Boston, Manchester, billion).
out in the end. run. Rob has spent Brighton and

36 June 01 - 07, 2018

Unhappy with your
motor vehicle repair?
Resolving any issues regarding repairing a motor vehicle gone wrong can
be very difficult and time consuming. But these are the basic dos and don’ts.
By Motoring Guru possible and this should include when is finished. The mechanic should know
you will get your car back. However, how to handle situations like this better
you must give the garage reasonable than you.
The basic dos and don’ts

A
amount of time.
lways look for a garage that is well  Tell the garage to call you for authorisa- Note:
established. It must be a registered tion before including other unexpected  Any work that’s been done for you
company, with proper premises, work they deem needed. should be done using the correct materi-
and able to process proper contract  Agree in writing what the fault or als, free from defect and should reach
documents. Dealing with repair shops or symptoms are and how the garage the standard of a competent motor
individuals that are not properly established proposes to fix them. Fortunately, these vehicle mechanic. If a repair’s fallen
as a business complicates the process if days most garages have computerised below that standard, the garage may be
something goes wrong. Don’t simply diagnostic machines which clearly indi- in breach of contract or negligent.
depend on references by others who have cate many faults. However, understand
used their service. Each situation is different. that additional problems can arise dur- New problem?
 Ensure you get a firm quote or written ing repair and costs can increase even You may get your car back only to find
estimate before you authorise repairs. when the mechanic’s working carefully. that the garage has caused a new problem.
Some unscrupulous garages like to open  Give the garage a chance to correct a Generally, the garage would be respon-
up your car, effectively starting on the repair that turns out to be faulty. sible for any additional fault or damage, but
job before you agree on the basics. Don’t  Don’t lose your temper. it’s up to you to prove that this happened
allow this because (1) the garage can  Don’t expect miracles – intermittent while the car was in the garage’s care.
charge you for that `diagnostic’ work faults can be very difficult to pin down, It’s possible that the new fault could be
even if you decide to move your car to and components can break when being completely coincidental and unrelated to the
another garage (2) some parts can get dismantled no matter how much care is original fault or repair. In all cases, always
damaged when opened, however care- being taken. try to negotiate with the garage first as all
fully a mechanic is (3) some parts may  When you buy parts to fit in your other avenues, including the legal process,
not be able to be reassembled in case vehicle, don’t expect the garage to take can be tedious and elaborate and not yield a
you disagree (4) the action frustrates responsibility if the fitting fails. Nei- positive outcome for you.
your right to get several quotes before ther can you return them to the dealer.
signing any contract. Therefore, it is better where possible, to NB. This article contains material from the
 Ensure you have a written contract if negotiate to pay for the work when it internet

June 01 - 07, 2018 37

Profile
Rogers Mulindwa on when a
bull nearly killed Museveni
By Agnes E Nantaba story about the life of the people who stay club with my students and could carry the

R
on the floating islands of Lake Kyoga. stories to the Daily Monitor offices,” said
ogers Mulindwa has been the Writing that feature gave Mulindwa his Mulindwa.
spokesperson of the ruling first time sailing in a canoe and living in a Five years in teaching, Mulindwa sought
National Resistance Movement place without toilets. to concentrate his efforts in journalism.
(NRM) party since 2015 but At the time he wrote these stories; He quit full time teaching in 1999. Around
his name remains familiar in the sports Mulindwa was still a primary school the same time, he had took on writing
circles and in journalism. He says one of teacher at Wobulenzi Primary School a sports column dubbed ‘Inside FUFA
his greatest memories as a journalist with which was his first job. house’ something which would later earn
the Daily Monitor newspaper, he once “I would see a lot the attention of then FUFA presidency.
wrote 23 stories in a single publication; of things happen Then FUFA president Lawrence Mulindwa
running from the front to the back in Luwero advised him to join the house, something
cover. that went he took on without hesitation. As a delegate
“It was my greatest unreported of the National Football Assembly from
achievement and I have so I started Luwero, Mulindwa was named FUFA
kept the paper until I a writer’s spokesperson, a position he held for eight
find a journalist who years. Under sports, Mulindwa also became
will make it up to that the first Ugandan journalist to make it to
level,” he says. the CAF as well as CECAFA spokesperson.
Over the years, his But prior to quitting the teaching job,
news coverage had Mulindwa joined elective politics and
interesting stories, contested as a youth chairperson on the
some of which he NRM ticket and several other positions. He
prides in; including climaxed with district councilor, a position
one about a bull that earned him an accolade as the best
that almost councilor in the country from ACODE.
attacked the He treasures the one-on-one 60 minutes
president and of meeting the King of Buganda in 2006
a feature a moment he treasures to the point of
framing the letter of invitation. But his
turning point was choosing to convert to
the Adventist faith in 1994 upon being
convinced that the seventh day of the week
was Saturday.
In 2013, when Lawrence Mulindwa
bowed out of the FUFA presidency,
Mulindwa followed suit and resigned to
concentrate on farming. Two years later,
he joined the NRM leadership as the
spokesperson of the party a position he
holds to date.
Mulindwa is the fourth born of Francis
Galiwango (RIP) and Satiya Nakiganda,
born in a remote village of Kakabala in
Luwero District.
“It was peasantry family where both my
parents were typical farmers who would
just grow food for home consumption,” he
says.
Three years after home schooling,
Mulindwa joined Kasaala Catholic Primary
School where he completed primary seven
before pursuing ordinary level and grade
three teaching. He later upgraded through
to grade five, a bachelors of arts with
education and diploma in journalism. He
is married to Olivia Namuli and has five
children.

38 June 01 - 07, 2018

 Q&A

Rogers Mulindwa’s Liteside

Any three things that we What is the greatest thing What is the quality you children; other things can

I
don’t know about you? you have ever done? most like in a man? go but not my children.
am a very talkative Standing for elective Attaching respect to
person. I hate dull politics where people had family. What do you regard as the
people so I love to stay to line behind me. If there lowest depth of misery?
with those who open was an opportunity to What or who is the Failing to find a meal in
up. I am very ambitious keep away the contestants, greatest love of your life? a day.
and when I put my I would support it but My children are number
hands onto something, I I had to do it. It was a one in my life because What is your favorite
strive to achieve because bold decision that I have after my death, they will occupation?
I have almost done it since built on to currently remain orphans for life, my Teaching exposes you
all from being a causal vying for MP in the next mother who made me up to all sorts of people and
labourer in the village to a elections. to where I am and my wife. relating with innocent
spokesperson of the ruling children is priceless. I
party. What is your current state When and where were you actually got most of my
of mind? happiest? friends through teaching
What is your idea of I am happy. Taking my first flight and sports.
perfect happiness? in 2008 as the leader of
Seeing my family happy. What do you consider the delegation to play in What do you most value
most overrated virtue? Angola having come from in your friends?
What is your greatest fear? Alcoholism; the way a very poor family and Their paths for survival
I fear fighting physically people attach time, respect since then, I have taken 89 and success must be
which explains why I and pride to alcohol is just more flights. straight and sustainable.
have never fought since too much. We can allocate My wedding day in
childhood but in 2015, a such time elsewhere 2009 was another happy Who are your favorite
certain journalist dragged because it’s becoming a big moment. writers?
me to court for allegedly problem in the country. My baptism into the SDA I prefer reading
fighting him and I kept church in 1994. something for a particular
asking God to prove who What does being powerful purpose and not just
was wrong or right. I mean to you? Which talent would you writers.
eventually won the case. Offering acceptable most like to have?
service at any level to those I survive on words Which historical figure do
What is the trait you most in need. which is where my you most identify with?
deplore in yourself? strength lies. Nelson Mandela
Being talkative is On what occasion do you embraced suffering even
something I am trying to lie? If you were to die and when he had an escape
reduce but with minimal When it involves saving come back as a person or a window only for the sake
success. the life of others. thing, what would it be? of fighting for the black
As a religious leader race. He had a purpose for
What is the trait you most What do you most dislike because the issues we are suffering and God never
deplore in others? about your appearance? battling with as a country cheated him.
Being negative about life. Nothing at all. are partly attributed to the
failure by religious leaders What is your greatest
Which living person do Which living person do to prepare us morally. regret?
you most admire? you most despise? I have a big regret that
Lawrence Mulindwa has Col. Kizza Besigye for Where would you most lives with me and keeps
a kind heart. He is one man being unappreciative; I like to live? haunting me.
whose hand has almost hate people who don’t At one time, I had an
touched everybody in the appreciate and never see opportunity to go for How would you like to
sports fraternity including good in others. foreign services, but I die?
those that hate him. chose to stay here because During a church service
What is the quality you it’s my country and has the on Sabbath.
What is your greatest most like in a woman? best weather.
extravagance? Attaching respect to What is your motto?
The biggest percentage family and loyalty to What is your most Life doesn’t end where
of my income goes to my husband. treasured possession? you are.
children. Everything about my

June 01 - 07, 2018 39

Global comment
By Kaushik Basu
Value of measuring financial inclusion
In case of downward income shock, households
linked to the formal financial sector fare better

I
n modern economics, the interaction be- cards instead of cash. cially included, and Afghanistan, where
tween supply and demand with regard But, beyond providing evidence to 15% are.
to goods and services is well under- support effective policymaking, the Between these two poles lie Pakistan
stood, thanks to the pioneering work of Global Findex report has another crucial (21%), Tanzania (47%), Indonesia (49%),
the late Kenneth Arrow and Gérard Debreu. benefit: it spurs healthy competition Bangladesh (50%), China (80%), and
But the links between the domain of goods among countries in areas that ultimately Kenya (82%). The United States has
and services and that of money and finance improve citizens’ wellbeing. After all, it a score of 93% – decent overall, but
are so mathematically complex that, despite is an unavoidable human trait that cred- rather poor for a rich country. Indeed,
repeated attempts, our understanding of ible and prominently displayed charts it trails behind Singapore (98%), the
them remains rudimentary. As a result, and rankings can stir up aspirational United Kingdom (96%), and Hong Kong
most policy decisions in the domain of spirits. (95%). This should provide incentive for
money and finance are based on observed Mainstream neoclassical economics stronger efforts to raise the US score.
regularities in the data. largely ignores this fact, instead sug- The Global Findex report also quanti-
That is why the World Bank’s triennial gesting that our “utility function,” or that fies and ranks countries according to
Global Findex report is so important. which we aspire to maximize, is exog- the gender gap in financial inclusion.
Based on a survey of more than 150,000 enous. But if that were true, there would Here, Jordan does the worst, followed
representative individuals, the report not be so much jockeying over credit by Turkey. Interestingly, there are six
provides a birds-eye view of patterns and ratings, the World Bank’s Doing Business countries where more women than men
regularities in data pertaining to finance rankings, or even Olympic medals. have bank accounts: Argentina, Georgia,
and financial inclusion – such as saving The competition prompted by the Indonesia, Laos, Mongolia, and the Phil-
behavior, use of mobile money, and pre- Global Findex rankings could be par- ippines.
ferred modes of sending and receiving ticularly valuable, especially with regard Of course, current rankings are not the
remittances – in 140 economies. The to financial inclusion. According to the only valuable insights the Global Findex
insights gleaned from these data provide latest report, the world’s most finan- report provides; the data are much more
vitally important help in shaping effec- cially inclusive economies are the Nordic nuanced than that. For starters, it shows
tive policy. countries, as well as Canada and the change over time. India, for example, has
The latest Global Findex report informs Netherlands, all of which have a score of made huge strides in expanding financial
us that 515 million individuals opened a 100% (meaning virtually everybody has inclusion. In 2011, only 35% of adults had
“bank account” at a traditional financial an account). At the other end of the spec- bank accounts. By 2014, that figure had
institution or through a mobile money trum are the Central African Republic, risen to 53%. Today, it stands at 80%.
provider between 2014 and 2017. As a where just 14% of residents are finan- Yet it should also be noted that 48% of
result, 69% of adults worldwide now accounts in India are “inactive” – that
have bank accounts, up from 62% in 2014 is, they have not been used at all in the
and 51% in 2011. This rise in financial previous 12 months. That is the highest
inclusion is welcome news, not least share of inactive accounts in the world,
because, in the event of a downward More broadly, and exactly double the developing-

access to
income shock, a household’s consump- country average of 24%.
tion will fall much less if it is linked to Simply put, the Global Findex report
the formal financial sector.
The latest Global Findex report also mobile money gives policymakers both the information
and motivation they need to take action
underscores the benefits, especially for
women, conferred by access to mobile
supported a that genuinely improves citizens’ well-
being. In lieu of a solid theory explaining
money. According to a study – cited
in the World Bank report – by MIT’s
20% increase the relationship between goods and ser-
vices, on the one hand, and money and
Tavneet Suri and Georgetown Univer- in the savings finance, on the other, this could not be
sity’s William Jack, mobile accounts have
enabled 185,000 Kenyan women to leave of women- more beneficial.

farming and start more remunerative

small businesses and retail activities.
headed Kaushik Basu, former Chief Economist of
More broadly, access to mobile money
supported a 20% increase in the savings
households the World Bank and former Chief Economic
Adviser to the Government of India, is
of women-headed households in Kenya. in Kenya Professor of Economics at Cornell University
and Nonresident Senior Fellow at the
And, as the Global Findex report, using
Brookings Institution.
data from India, shows, leakage of funds
for pension payments declines sharply
when the payment is made with smart Copyright: Project Syndicate, 2018.

40 June 01 - 07, 2018

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