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News analysis Health Business

How undemocratic Scientists find Karuma, Isimba and


practices breed corruption HIV hiding in cells electricity tariffs

Issue No. 561 March. 01 - 07 2019 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

Why Katuntu COSASE


wrote `weak’ report
Can Kasekende, Mutebile,
Ssekabira, Bagyenda escape?

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March. 01 - 07 2019
INBOX

Issue No. 561 March 01 - 07 2019

News analysis Business Health Arts Motoring

Cover story
Why Katuntu COSASE wrote `weak’ report
Can Kasekende, Mutebile, Ssekabira, Bagyenda escape?

4 The Week
30 Comments
NRM CEC endorses Museveni
as flag bearer come 2021 Understanding economic
stagnation: A comparative
look at Museveni’s economic
9 The Last Word
performance against other long-
Fortune favours the bold: Why serving leaders in the region
government of Uganda should
heavily invest in Kiira Motors even
32 Health
in the face of many impediments
HIV hiding in cells: It can
14 Analysis now be measured. But are
we closer to a cure?
How undemocratic practices breed corruption:
Transparency International’s CPI 2018 tracks link
between corruption and lack of citizen engagement
35 Arts & Culture
27 Business
Circle Art Auction opens:
Karuma, Isimba and electricity Market place for exceptional art
tariffs: New investors could from the region to the world
trigger a drop in electricity costs

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

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 March. 01 - 07 2019
Offline

“Look my position is very clear. As long


as I am respected, I will be respectful
but if I am not respected, I will not
respect anybody.” Mwesigwa Rukutana,
Deputy Attorney General to Justice Catherine
Bamugemereire during commission inquiry

Nigeria Votes:
76-year-old
Nigerian President
Muhammadu Buhari
votes on Feb.25 as
he bid for re-election
after dozens died in “If you are called upon to mediate in
weekend violence
and monitors a land conflict and the parties fail to
voiced concern agree, yours is not to say who is right
about polling-day
problems. or wrong because this is how you have
been getting involved in stealing
people’s property” Esther Mbayo, Minister
for the Presidency cautioning RDCs
Rwandan Minister
of Environment,
Dr Vincent Biruta,
launches NBI’s latest
publication, A Long
River Journey, during
the 20th anniversary
celebrations in Kigali,
Rwanda.

Sudan on fire: Sudanese


President Omar al-Bashir “During the probe those guys (MPs) gave
on Feb.22 declared a us a lot of expectations that the report
nationwide state of would land with a bang. Instead it has
emergency as he bids
to stay in power despite landed with a whimper. The sanctions
months of protests aimed are every mild and general.” Norbert Mao
at ending his three-decade on COSASE report on BOU
long iron-fisted rule.

Children who died People still missing 15 Money Uganda needs to


4 in a house fire in
Kampala last week
206 years after the LRA
attack in Barlonyo, Lira
Shs10bn realise full potential of
Irish potato production

March. 01 - 07 2019 3
week

Workers push for expeditious NRM CEC endorses Museveni as flag bearer come 2021
set up of minimum wages Members of the ruling Museveni as the sole kick NRM out of power.
board as bill is passed National Resistance
Movement (NRM) Central
candidate saying the
move undemocratic. For
Museveni will be 76 years
old come 2021 and he will
Executive Committee met instance Lwemiyaga contesting for a sixth term
A private members bill moved in 2015 at Chobe Safari Lodge County MP Theodore in office since he has been
by workers’ MP Arinaitwe Rwakajara was in Nwoya district for a Sekikubo said that the at the helm of the country
finally passed by parliament on Feb.20. It five day retreat in which decision by CEC is selfish since 1986 when he come
seeks to have establishment of minimum they endorsed President and falls short of the to power after a guerilla
wage boards by the minister, mechanisms Museveni to once again principles of democracy war.
for determining minimum wages for each compete for presidency in that the NRM party Though he is
sector, duties, powers and functions of the the 2021 general election. subscribes to. increasingly being
board and the procedures for determining In the Feb.19 meeting that Commenting on this painted in bad light by
the minimum wage. After it was passed, was closed to the media, on Feb.25, government observers and members
workers’ unions took to the media to call it’s said government chief spokesperson Ofwono of the opposition for
for its swift implementation. whip Ruth Nankabirwa Opondo said the deteriorating democracy
“People cannot dictate what they wish made the proposal which opposition should be and torture of opponents,
to be paid and therefore live at the mercy was supported by other happy about having he won with 60.75% of the
of their employers; something we set out members. Museveni again on the votes in previous election
to correct with this bill,” he said Rwakajara However, NRM ‘rebel’ ballot since they have against 35% of his closest
who says the new law will address the gaps MPs held a press briefing branded him a tired rival Kizza Besigye who
in the current Minimum Wage Advisory on Feb.22 challenging the leader. He said this should until now alleges that he
Board Act by providing for an employee- resolution that endorsed make it easy for them to was the rightful winner.
employer led minimum wages determina-
tion, sectoral based minimum wage deter-
mination and application.
When the Bill came for second and third
reading, many legislators warmly received
it as they said it provide a solution for the
challenge that has long been faced of exploi-
tation of vulnerable workers. It now awaits
accent by the president.
The International Labour Organisation
defines a minimum wage as the minimum
sum of money payable to a worker for work
performed or services rendered within a
given period to cover the minimum needs
of the worker, his or her family, in light of
national economic and social conditions.

Rukutana, Bamugemereire clash over 24b land compensation Nigeria goes to polls
The commission of they subject others On Feb.23, Nigeria went to polls that
inquiry into land matters to. Commissions of saw 73 million eligible voters chose from
led by lady justice inquiry are guided by a pool of more than 70 presidential candi-
Catherine Bamugemereire the Commissions of dates, although two – incumbent Muham-
on Feb.20 summoned Inquiry Act and terms mad Buhari and former vice president
Deputy Attorney General of reference”, he told Atiku Abubakar attracted majority sup-
Mwesigwa Rukutana to journalists after the porters.
explain how he endorsed Incident, “I will not The ailing president Buhari last year
payment of Shs24b by allow you to bark at publicly denied social media claims that
government to a one Dr. me to show people he died and was replaced by a Sudanese
Mohammed Kasasa for 12 arrogantly something that that I know nothing. I treat clone, and also courted international con-
acres of land on Mutungo angered the lady justice and you the way you treat me. troversy in the past by suggesting his wife
Hill, which the External kicked him out. Respect me, I respect you. belongs to the kitchen
Security Organisation “You know they want to However, he had earlier By press time, although both Buhari and
occupied and the show off; they want cheap asked for a minimum of Atiku’s camps were claiming resounding
victories, partial results announced by the
shs8billion that went into popularity. They are used 30 days only for his plea
Electoral body were showing incumbent
payment of interest. to forcing witnesses into to be rejected – to Feb20
President Buhari to be in early lead. While,
But, once the questioning submission, they abuse on the grounds that it was
Buhari was campaigning on dealing with
started Rukutana who them. They are there to not commensurate with
corruption and revamping the economy,
had earlier on Feb.05 make names for themselves. the Land Probe’s terms of his counterpart was mainly tackling issues
asked for more time to I rejected that; I refused reference, which is time of unemployment.
prepare himself responded to be subjected to what bound.

4 March. 01 - 07 2019
Week

Concern as Kyaligonza’s Police blocks DP Jinja reunion


guards assault police officer Democratic Party (DP) President
Women activists petitioned speak- General Norbert Mao and others were
er of parliament Rebecca Kadaga on briefly arrested on Feb.20 as police tried
Feb.25 over among others the way to stop a party reunion in the Eastern
UPDF officials guarding Rtd Maj. Uganda town of Jinja. According to
Gen Matayo Kyaligonza manhan- the police, the party hadn’t gotten
dled a police officer in Seeta Mukono. permission to hold a gathering per
On Sunday, the media was awash the requirements of the Public Order
with condemnations after photos Management law, although party
and a video of the major looking on stalwart Samuel Lubega said the secured
as a female Traffic officer was being all the necessary clearance since they
assaulted was released. It is alleged have a roadmap for the reunions.
that a scuffle ensued after the female The party has since May last year
traffic officer allegedly tried to stop been organizing reunions focusing
the vehicle in which Kyaligonza was especially on members of the youth
travelling for allegedly breaking traf- wing – Uganda Young Democrats that
fic rules when they made a U-turn in have defied or left the party as part of in Kampala in May last year. Later, in
the middle of the road. the plan for them to be relevant in the September, another reunion was held in
By press time, the two army offi- 2021 polls. Championed by the likes the party stronghold region of Masaka.
cers had been arrested and according of former Makindye legislator Mike Opposition politicians from other parties
to spokesperson Brig. Richard Kare- Mabikke who too had left the party attended but it ended in chaos.
mire an investigation into the matter and only returned recently is to attract Mabikke told the Independent that
launched. those that had left to return and solve they had planned a number of caravans
the party’s internal wrangles. The first across the country but were briefly
reunion has held successfully at the put on hold following the violence in
Makerere University Rugby Grounds Masaka.

CCEDU’s election observation ban lifted


Until Feb.21, Civil Society Electoral commission by releasing
Organisation – Citizens Coalition information mandated to only be
for Electoral Democracy in Uganda released by the electoral body.
(CCEDU) which is the only local Now according to CCEDU’s
entity licensed to observe elections National Coordinator Crispin Kaheru,
in the country couldn’t do its work they have agreed that among others
following a suspension by the Electoral EC develops guidelines on use of
Commission (EC) in July. At that time new media in elections for election
– when by elections were being held observers and CCEDU comes up
in different areas including Rukungiri, with a robust leadership structure for
Arua and Jinja East, the electoral election observers that include a Head
body said the entity was carrying out of Mission, who will communicate the
its work in a partisan manner and observations in a timely manner to the
that they had turned themselves into relevant stakeholders.

AfricellUG @AfricellUG

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Regulated by Uganda Communications Commission

for more bundles

March. 01 - 07 2019 5
Week

State House anti-


corruption unit goes to
Mbarara, CAO arrested
The state house anti-corruption unit
headed by Col. Edith Nakalema made
an impromptu visit to Mbarara on Feb.23
after a whistleblower tipped them off
regarding irregular sale of government
land. Following interrogations, the
Mbarara chief administrative officer,
Cuthbert Esoku was arrested alongside
a surveyor Godliver Nayebare and the
district physical planner Julius Luck on
grounds of abuse of office and conniving Rapid diagnostic tests for Hepatitis B introduced
to misuse public resources.
A new rapid diagnostic test for Hepatitis aids early suppression of the virus which
The two are accused of aiding sale
B that gives results in just 15 minutes was helps in keeping at bay complications like
of a house that used to host the district
launched on Feb.21, making it possible for liver cancer.
veterinary offices by former Mbarara people who test positive to be linked to care However, Patients using the Determine
speaker Grace Muhiirwe which is said immediately or make other treatment deci- HBsAg device which can now be accessed
to have been sold to Rwampara County sions promptly. Dubbed Determine HBsAg commercially in Africa, Europe and
Member of Parliament Charles Ngabirano 2 according to its manufacturers detects Latin America would still be required to go
at Shs 25 million. Another piece of land the virus in whole blood, serum or plasma through additional confirmatory testing.
near Mbarara State Lodge, was fenced off and provides rapid and accurate results In Uganda, according to the 2016 Uganda
by a group of yet-to-be known people. quickly by identifying a hepatitis B surface Population-based HIV Impact Assessment
But according to Nakalema, the person antigen, a surface particle from the hepatitis (UPHIA) Survey results, prevalence of
who encroached on State Lodge land B virus that is found circulating in blood of Hepatitis B infection among adults stands
must be known by authorities in the an infected person. Medical experts recom- at 4.3% - 5.6% among men and 3.1% among
district who have refused to speak out. mend early diagnosis of hepatitis B for it women.

6 March. 01 - 07 2019
Humour Did you know?
New Samsung can store
300,000 selfies

DJ Koh, President and CEO of IT and


Mobile Communications, holds up the new
Samsung Galaxy Fold smartphone during
an event on Feb. 20 in San Francisco.
Mukono Municipality MP Betty Nambooze and the Democratic Party
President Nobert Mao blow up over new Besigye cabinet. Samsung has announced a smartphone
with the storage capacity to hold more
than 300,000 selfies, the company’s first
with 1 Terabyte (TB) of storage.
The 6.4-inch Galaxy S10+ supports up
to 1TB of storage, double the previous
highest 512GB storage capacity of a
Samsung phone. The 1TB of storage is
equivalent to 1,000GB: enough to store
more than 300,000 selfies taken on a
front-facing camera. It was one of three
new smartphones confirmed during an
event in New York, alongside the Galaxy
S10 and Galaxy S10e.
The new flagship Galaxy S10 features
a triple rear-facing camera set-up,
consisting of a zoom lens, a wide-
angle and ultra wide-angle lenses. The
6.1-inch device and the larger Galaxy
S10+ feature an in-screen embedded
fingerprint scanner, activated by
pressing a finger against the lower-third
NRM supreme organ has endorsed Mr Yoweri Mseveni as party sole candidate for the 2021 elections. of the handset’s screen.
Samsung’s memory division
announced last month it had begun
mass-producing 1TB flash storage chips
for phones, which it claimed would
offer a comparable user experience to a
notebook computer.
All three handsets feature Wireless
Powershare - the ability to charge other
devices, including wearables and non-
Samsung smartphones, by touching
them to the handset’s back.
Samsung also revealed further
information about the Galaxy Fold, its
foldable smartphone, which is due to go
on sale in Europe on in May.
Samsung remains the world’s largest
smartphone maker, holding around 18
per cent of the mobile vendor market
share worldwide at the end of 2018,
shipping more than 292m handsets
throughout the year, according to
COSASE bank probe report was over ruled by the Speaker of Parliament Rebecca Kadaga. analyst Statista.

March. 01 - 07 2019 7
News analysis Health Business
When elephants Is mzungu 'savior' killing Kampala’s rental rates
attack people babies in Mayuge? remain stable

Issue No. 560 Feb. 22 - 28 2019


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

Black days
at MTN
Story behind dumping of 5 bosses

Inbox
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www.facebook.com/TheIndependentMagazineUganda
www.independent.co.ug

Letters are
welcome ! Handling Crane Bank issues
The Editor welcomes short and
Refer to: “Crane Bank Crane Bank. Let’s first look killed the cow than how the
concise letters from our esteemed sale was fraudulent” (The at how and why it failed. carcass was managed.
readers on topical issues. Please Independent Feb.07). Well, Because I think it’s more
send them to: before we go to the sale of important to know what Stannley Kaahwa
The Editor, The Independent
Publications Ltd,
P.O Box 3304,
Plot 82/84 Kanjokya St,
Kamwokya. Too much at stake for Museveni, Kagame
Kampala,Uganda.
Refer to “Museveni’s AU tured the entire security the larger strategic goals of
Email: editor@independent.co.ug speech” (The Independent apparatus and got diehards a healthy neighborly rela-
Feb. 22). The solution is out (former Defence Minis- tionship and accept some
simple – President Yoweri ter, Gen. James Kabarebe). ego related collateral dam-
Museveni must get Brig. Kagame reconfigured age for taking this choice as
Minimum wage, Abel Kandiho (Chieftaincy Immigration /CMI/DMI/ minimal. There is too much
good for Uganda of Military Intelligence
boss) and other like-minded
Minister of Defence. Only
when Museveni does the
at stake.

individuals out – in the same will both leaders be George


The plan by the Ministry of Gender, same way President Paul fed with accurate strategic
Labour and Social Development to set a Kagame of Rwanda restruc- advice to get them to realise
minimum wage every year is is going to
help many workers who fall in this cat-
egory because some of them have been
cheated by their bosses. Some bosses claim On Uganda’s health services
they accommodate the workers, so salary
their needs to be low. This is going to help
them start getting some average kind of Refer to: “Wrong thinking on health irreversibly damaged the ecology of the
salary so that they can also do something services” (The Independent Feb.08). From country. However, it also needs knowledge
meaningful in their lives and plan for their the standpoint of Western ‘indoctrinational’ and ABILITY to act. So does good hygiene,
futures. Most of these workers averagely economics, this Mwenda article gets an ‘A’. sanitation, good water supply and treat-
earn Shs50,000 a month; mostly the house For even his usual critics now seem to be in ment.
maids. Sincerely this kind of money can’t line. Unfortunately friends, I am not near Now my second point of departure:
do anything solid for this person apart from 100% alignment. I quite agree on the obvi- What is this ABILITY? Don’t quickly jump
minor things like buying clothes, makeup ous issue of ‘Preventive’ health care. For is to ‘money’. Even Mwenda expresses this in
and other petty stuff. These people should that not what in my world, we have always monetary terms in this article. But mine is a
have broader expectations; like acquiring emphasised after creating assets? big NO, NO, NO. It is the taking of initiative
own land one day, renting better accommo- But there also lies one of my points of to act. That courage to clear mental laziness
dation, or taking children to a better school. departure: The assets MUST HAVE BEEN first, and follow it by physical action as
This is going to bring fairness and CREATED before they are ‘preventatively’ guided by the mental plans.
improve a lot on their standards of living. maintained. Preventive maintenance works Money is often looked at as a medium of
This law is going to be one of the key things best if there is a clearer understanding of, exchange. But more realistically, it is a way
to take Uganda to the middle income status and ABILITY to effect or modify the creative of saying ‘my creative effort is worth so
because if the people’s standards of living processes that made the assets. much of yours’. Thus, countries and societ-
get better then that means that the economy Back to preventive health care now: ies with less imaginative and creative talent
is growing. Good nutrition of a youthful, unemployed, are doomed at this alter of money. Imagi-
The Ministry needs to use a lot of media under-educated population of 40 million nation and creativity are nature’s endow-
platforms so that even a worker far away still growing at 1.2+ million a year in a ments for every human being to explore
from urban or town centers gets to know country as small as Uganda, requires mas- and exploit to sustain her/himself in this
about it. It might require the Ministry to sive production of nutritious food, which universe. Those who do it better than others
sensitise workers in their local languages in turn, needs ABILITY on part of the better will always dominate, in a competitive envi-
for better understanding. educated to do so. ronment for resources.
Vector control today could in theory be
Kevin seguya easier than in the pre-1986 days: for we have Dr. Eng. Kant Ateenyi
kelvinsegz@gmail.com

8 March. 01 - 07 2019
The Last Word Opinion

Fortune favours the bold


By Andrew M. Mwenda
Why government of Uganda should heavily invest in
Kiira Motors even in the face of many impediments

U
ganda wants to manufacture cars. disaster and after three years and severe that this KMC was a pipe dream, a pet
It doesn’t have any comparative losses it withdrew the model it had taken project by President Yoweri Museveni
advantage in this field. It does not there. Three times in its life in the 1950s it to steal or misuse public funds. Or we
produce iron ore from which to came close to bankruptcy, three times the can choose to see such problems as
make steel, an important input into the car government of Japan rescued it. Toyota opportunities to learn and improve how we
manufacturing industry. It is landlocked. It grew to become number one (now number do business.
has no prior experience in manufacturing two) because the Japanese people and The difference between successful and
anything significant. And it is trying to do it government believed in it. failed countries is their attitude to the
using a state owned enterprise, Kiira Motors The story of Japan’s rapid economic challenges they face in the initial stages of
Corporation (KMC), in a government development is a story of many improbable developing an industry. For instance, it is
riddled with corruption and incompetence. journeys. When it entered the computer politically appealing and psychologically
For many observers, this is a toxic industry in the 1960s, Japan seemed to be gratifying to take a populist stand on such
combination that produces economic undertaking a mad man’s dream. American issues and condemn public officials for
disasters, right? Yet I think Uganda computer companies like IBM were the misusing public funds and call for an end
should try. The heading of this article is world champions. Japan’s companies to public financing of a government project.
drawn from the title of a 2003 book by an like Toshiba were mere mosquitoes, to But this is rarely the right thing to do. On
economics professor at the Massachusetts use the words of Peter Evans in his book, the other hand it requires quiet tenacity and
Institute of Technology (MIT), Lester Embedded Autonomy: States and Industrial patience to build an industry from scratch;
Thurow. It is MIT that initiated the project Transformation. But again, Japan took especially when the journey is riddled with
that produced the innovation that Kiira is the bold step and by the 1990s it was fraud and incompetence.
trying to turn into a product and a business. dominating this industry. Yet the history of all successful projects,
Kiira’s journey seems improbable but that The story of Japan’s industrial even political ones, always seems
is how transformative projects that have transformation is the story of all late improbable. Take Museveni’s political
altered the course of history initially seem. developers. Comparative advantage is not journey as an example. Imagine him and his
Take the example of Japan, the country just based on initial endowments. It can be motely crew of 42 youths with 27 guns and
from where I am writing this article. When actively constructed. When South Korea hardly any experience in war heading to the
it sought to enter the automotive industry in sought to enter the automobile industry in bush to begin a revolution against a trained
the 1930s, it seemed improbable. Japan did the 1960s, it established the Pohang Iron army backed by a foreign power, Tanzania.
not have iron ore. It lacked technology. It and Steel Corporation (POSCO), a state Their first attack on Kabamba was a failure.
had to first pass a law that only companies enterprise. Its American benefactors said Their initial years were characterised by
majority owned and controlled by its the country lacked iron ore and technology little progress. By 1983, they came close to
nationals could sell cars in the country. Yet and was using the state to produce steel, a annihilation and even discussed leaving
it did not have a comparative advantage recipe for disaster. South Korea insisted and Luwero for the Rwenzori Mountains. But
in manufacturing cars. American and forged ahead. By 2000 when I visited the they persisted and finally won.
European automobile firms were so country, POSCO was the most successful Museveni has proved daring in his pursuit
advanced they could supply Japan with steel company in the world, knocking the of power but been excessively cautious
high quality cars at lower prices. living daylights out of privately owned in his pursuit of economic development.
Yet Japan took the bold step. In American steel firms in global market. Where he believed in the capacity of
1932 it banned American Automobile Today we look with awe at Sam Sung, Ugandans to liberate the country politically,
companies, Ford and General Motors, Hyundai and LG, forgetting that when it he believes in foreign investors – Indians,
from establishing assembly plants in the started her journey, it seemed a pipe dream. Europeans, Americans, Chinese and
country. Look at Toyota, the world’s second Fortune favours the bold. There are one Arabs – to liberate Uganda economically.
largest automobile company. According million reasons why Kiira may fail. There Instead of using the state to support private
to David Magee’s book, How Toyota are three reasons why it should succeed. business initiatives by Ugandans, he has
Became Number One, its first vehicles had Kiira should be given a chance for only been giving tax holidays, prime land and
numerous quality issues, the manufacturing those three reasons. Uganda needs to be other state benefits to foreign investors. In
process was rudimentary and the company bold and throw everything at it and at other venture capital, only one in ten projects they
was not competitive in global markets. projects. finance succeed. If the failure rate by private
Its first products were a little more than There will be mistakes and blunders venture capital is 90%, why should the state
modified versions of Chrysler, Ford and along the way. There will be corruption, in Uganda not take a risk on Kiira and other
General Motors vehicles. incompetence and fraud. It is not these innovations by our youths?
For the first 20 years Toyota could not scandals that will kill Kiira but how
break-even. So it depended on subsidies we respond to them as a country. We amwenda@independent.co.ug
from the Japanese government. In its first can choose to use such problems as
seven years, it produced only 1,500 cars. opportunities to grandstand and score
Its first entry into the USA market was a political points and prove our initial claims

March. 01 - 07 2019 9
cover story

Why Katuntu COSASE


wrote `weak’ report
Can Kasekende, Mutebile,
Ssekabira, Bagyenda escape?
By Haggai Matsiko
cover story

Former BoU EDS Justine Bagyenda, her former deputy Benedict Sekabira and other officials while appearing before COSASE

F
By Haggai Matsiko COSASE, BoU was already under
intense public scrutiny following the
ire. Prosecute. Jail. These 2017 purchase of 350 ballpoint pens
appear to be some of the at a whopping Shs357,000 each and
recommendations many the February 07, 2018 staff changes by
expected to be in the report that Mutebile that sparked an internal fight.
Abdul Katuntu, the Bugweri The bank staff formed camps pitting
County legislator and chairman Mutebile and those loyal to him against
of the Parliamentary Committee on his deputy, Loius Kasekende and those
Commissions, Statutory Authorities, and loyal to him. The bank board of directors
State Enterprises (COSASE) tabled before got sucked into the wrangles and
the House on Feb.18. whistleblowers petitioned the Inspectorate
Instead, the key recommendations of Government and parliament.
include; all Bank of Uganda (BoU) officials Amidst all this, on November 05, 2018
who failed to properly execute their duties Sudhir Ruparelia some anti-corruption activists attacked
in accordance with the law should be BoU’s premises and let-loose piglets
held responsible; BoU should address draped in placards with the pictures of
the probable financial loss occasioned. Mutebile and Juma Kisaame, the managing
BoU should make good of the losses director of DFCU bank, which BoU hand-
occasioned by the negligence of its officers. picked to acquire assets of the defunct
The appointing authority should consider Crane Bank.
reviewing the BoU Board.
As a result, “boring”, “toothless”, “a In the past, piglets painted in yellow —
complete waste of resources” are some of the colour of the ruling party NRM—and
the words and phrases many critics are tagged with names of certain legislators,
heaping on Katuntu and his team’s report. had been dumped at parliament to protest
The anticipation of what the report the “greed” of legislators belonging to the
would look like has been so intense that ruling party.
some insiders fear this is a redacted This explains why the dumping of pigs
report—for the eyes of the public. “The at BoU was seen as the lowest moment in
president has been given the more detailed the history of the central bank and a major
report,” claimed one insider, “it is more Juma Kisaame protest against its leadership over their
biting.” The Independent could not mishandling of the financial sector.
confirm the claim. Kasekende for failing to turn up with the
But true or not true, this claim shows requisite documents. At another point, BoU blamed
that many see Katuntu’s report as Katuntu threatened to have the former In summary, the report pins BoU
underwhelming; especially having Executive Banking Supervision, Justice officials for the entire mess surrounding
watched how he together with his team Bagyenda, arrested if she did not turn up the take over and liquidation of seven
of legislators summoned and aggressively for the meetings. She was being grilled for defunct commercial banks and appears to
quizzed officials at BoU. allegedly spiriting critical documents out either absolve shareholders of these banks
At some point, the committee threw of the central bank in the wee hours of the or downplay their perceived misconduct.
out of the meeting Governor Tumusiime night. BoU took over and liquidated the seven
Mutebile and his deputy Louis Even without being exposed by commercial banks between 1993 and

March. 01 - 07 2019 11
cover story
taking an interest in the finding.
It is not the mandate of parliament
to conduct a criminal investigation and
anyone demanding that is ignorant of
the doctrine of separation of power in a
democracy, Katuntu has argued.
“We risked being misunderstood if we
had gone outside our terms of reference,”
he says.
But it appeared he was reading more
into his report than most of its readers
saw.
“We have indicted the entire board,”
Katuntu said at one point while explaining
how his committee had held officials
accountable.
He was referring to the committee’s
observation that the board did not
Benedict Sekabira hands a document to COSASE deputy chairperson Anita Among as Governor
Mutebile and EDS Tumubwiine Twinemanzi look on during one of interfaces with the committee. adequately supervise management in
the process of liquidating the financial
institutions.
2016. The defunct banks include: Teffe, special report on the seven defunct banks, As a result, his committee recommended
Greenland Bank; formerly owned by the “In the absence of guidelines of the sale that; “the appointing authority may in
late Sulaiman Kigundu, National Bank of banks, there is a risk that bank assets the event of any failure on the part of
of Commerce (NBC), formerly owned may be sold at a loss arising from conflict the Board in effective supervision of
by tycoon Amos Nzeyi, former Prime of interest between BOU staff and the the management of the Bank consider
Minister, Amama Mbabazi, among others, potential buyers.” reviewing their appointment”.
International Bank, formerly owned by COSASE based its probe on the Special Usually, an indictment is a criminal
the Emma Kato family, Cooperative Bank, Audit it asked the AG to undertake accusation against an individual or group,
Global Trust Bank, and Crane Bank. following the controversy surrounding in this case, the crime is clearly unclear.
Shareholders of these banks appear to have the takeover of Crane Bank on October 20, Governor Mutebile is the BoU board
won the sympathy of whoever heard their 2016 and eventual sale of Crane Bank to chairman and Louis Kasekende is the
revelations. DFCU on January 27, 2017. deputy.
“Highhanded, reckless and ill- Katuntu’s team also recommended that
motivated” said Elias Edu, the former Katuntu’s defence other BoU officials be held accountable
company secretary for GTB as he explained Critics say they expected Katuntu’s for their commissions and omissions in
to COSASE how following a demand on committee to name names, causes arrests liquidation banks.
the July.4, 2014 to recapitalise the bank, and resignations. The committee concluded that in
the central bank did not give them time to Governor Tumusiime Mutebile, his liquidating the seven banks, BoU officials
comply—it shut down the Bank on July 25. deputy Louis Kasekende, former Executive did not follow or severally breached the
“You see the crisis you have caused the Director Banking Supervision and her provisions of the Financial Institutions Act
nation,” an infuriated Katuntu charged deputy, Benedicto Ssekabira are some of (FIA).
at one point while staring at Bagyenda the names many expected Katuntu to list According to the FIA, BOU is obliged to
who was not providing the answers the and hold accountable. take certain steps before selling off assets of
committee was demanding, “You caused “The first person who should be put a financial institution.
a crisis because you did not do things the on firing squad is Mutebile,” said former The FIA, for instance, demands that
way they are supposed to be done.” COSASE chairman Semujju Nganda, the sale of assets of a bank taken over by
Earlier on Nov.20 COSASE had kicked “How did all this happen under his nose?” BoU should be done in a way that results
BoU managers out of the hearing amidst Katuntu, after tabling the report to in marshaling the greatest amount of the
allegations that they were deliberately parliament, appeared keenly aware of the financial institution’s assets and protects
withholding vital information on the growing criticism against his committee the interests of depositors; including
movement of assets, including cash, of report. He went on an explanatory tour of their interest in the unprotected deposit
some of the sold banks. Special mention radio and TV talk shows. amounts.
was made of Bagyenda. We were guided by the terms of It should also minimise costs to the
These sorts of scenes appear to have reference, Katuntu has pleaded. Deposit Protection Fund and losses to
created an impression the COSASE A committee of parliament such as other creditors, and ensure stability of the
investigation would make heads roll. And COSASE, he said, must do four things: financial sector.
it appears these expectations have not been propose requisite policy changes, In determining the amount of assets
met. recommend legal reforms, suggest likely to be realised from the financial
The Katuntu committee report is the measures to improve the governance, and institution’s assets, the FIA states that the
second to indict BoU for its handling of the ensure accountability. receiver shall, (a) evaluate the alternatives
sale of the seven failing commercial banks. He said his team had done all four for on a present value basis, using a realistic
The first was the September 2018 report by Bank of Uganda. Then he listed what he discount rate, and (b) document the
Auditor General John Muwanga. said were the main achievements of the evaluation and the assumptions on which
“I observed that there were no COSASE probe. the evaluation is based, including any
guidelines/regulation or policies in place to In his view, the next step involves assumptions with regard to interest rates,
guide the identification of the purchasers the COSASE report being debated in asset recovery rates, inflation, asset holding
of defunct banks,” the AG noted in his parliament and other arms of government and other costs.

12 March. 01 - 07 2019
cover story
Bagyenda, Ssekabira cut deal interest of between 21-25 percent on these behalf of BoU came out.
COSASE found that BoU rarely followed loans. Nile River, which was incorporated According to the law, this is the
this and as a result in some of the cases on Sept. 26 2007 in Mauritius was now document BoU should have prepared
marshaled the least amount of the financial defunct. before engaging any buyers of Crane Bank
institution’s assets. When COSASE pressed BoU and SIL assets. BoU should then have based on this
For instance, COSASE found that to provide evidence of Nile River’s legal document to resolve Crane Bank.
assets of three banks--ICB, Greenland and existence, they could not. Instead, having granted access to dfcu
Co-operative Bank—worth Shs145b were Both companies, the committee bank for it to do its own valuations and
discounted by 93 percent and sold to an discovered, were not VAT registered and due diligence, BoU then relied on the
unregistered entity. had never remitted any taxes out of its valuations of dfcu to move to it assets of
The report notes that BoU hired a income earnings. Crane Bank.
company called M/s JN Kirkland and “The committee concludes that the COSASE observed that by allowing
Associates to sell the assets of the three transaction between BoU and M/s this, BoU flouted the FIA. The committee
banks. Octavian Advisors Plc. and her agents wondered why BoU transferred the bad
Kirkland then found another entity lacked transparency and the officers book to dfcu in the case of Crane Bank yet
called Octavian Advisiors Plc, which involved should beheld responsible in the case of NBC and GTB, the bad book
incorporated a company in Mauritius as for commissions and omissions which was never transferred to the purchaser.
a special purpose vehicle for purposes of resulted in marshaling the greatest amount Given that the Shs200 billion differed
entering into contract with BoU over the from the assets of the distressed financial cash consideration was to be paid from the
assets in question. institutions,” the report recommends. recoveries from the bad book estimated by
JN, which was a consultant DFCU in its bid (Dec. 20 2016)
for BoU, then ended up as to be in the region of Shs 500
the local agent for Nile River billion was fully provisioned
with rights to run an account by CBL, the committee added,
in Citi Bank in which all the only prudential decision
recoveries of the sold loan would have been to treat the
portfolio are deposited. bad book like in the case of
It emerged that Nile River GTB and NBC.
was not registered as a local Secondly, the committee
or foreign company, a clear further observed, where as
violation of the Companies the outstanding liability owed
Act. Octavian was also not to BoU by CBL was Shs478
registered in Uganda. billion, dfcu only assumed
Interestingly, Ssekabira liability to the extent of Shs200
who was the Director billion whose value was to be
Commercial Banking and recovered from the bad book.
was as a result the agent of Former shareholders of National Bank of Commerce Amos Nzeyi This is in the committee’s
BoU, the seller, was also the and Amama Mbabazi while appearing before COSASE considered opinion resulted
agent of Nile River, the buyer. in a financial disadvantage to
In 2007, Ssekabira and both BoU and CBL.
Kakembo; lawyers of the buyer, travelled Katuntu’s team also called upon the The committee notes that a BoU
to the U.S. to meet the management of Inspector General of Police to immediately Board sitting on December 15, 2016
Octavian Advisors Plc. But when the seize land titles and other securities from had resolved that the Buyer of CBL
committee asked him why he had travelled Mr Kakembo Katende of JN Kirkland and would take all the assets and liabilities.
to the U.S., he said he did not know the Associates and SIL Investments arising However, BoU management concluded
purpose. from the management of the loan portfolio an agreement with dfcu that excluded
After Ssekabira’s USA trip, however, previously managed under Nile River. some assets and liabilities from the deal.
Octavian which had offered to pay $ 10 COSASE also called on the Uganda COSASE concluded that these exclusions
million for the loan book of the three banks Revenue Authority to pursue the named disadvantaged BoU and CBL.
ended up paying only $5.2 million. firms and recover unremitted taxes. “BoU having failed to value the assets
The BoU ensured this by granting In the case of Crane Bank, COSASE also and liabilities of GTB, NBC and CBL
Octavian exclusivity in the dealings. found that BoU officials flouted the FIA. and considering the lapse of time and
Katuntu’s committee learnt that The committee had heard that when impossibility in revaluation of assets
Bagyenda, who was Ssekabira’s boss, Bagyenda, made a decision to sell Crane should address the probable financial loss
single-handedly handled this transaction. Bank, she just picked her phone and called occasioned,” the committee recommended,
She only notified Governor Mutebile the then Managing Director of dfcu, Juma “All BoU officials who failed to execute
after the transaction had been concluded. Kisaame and invited him to her office at their duties in accordance with the law
Octavian had already been awarded BoU. should be held responsible for their
exclusivity rights on the deal at pre- Kisaame told the committee that commissions and omissions.”
bidding stage. The committee concluded dfcu was then granted access to Crane Overall, the report has attracted mixed
that this action blocked any competition, Bank assets between November 30 and feelings. For some, the recommendations
which would return the highest possible December 20 2017. in the report could completely change the
bidder. On December 9, BoU then invited dfcu central bank for the better.
Then somehow Nile River got out to bid for the assets and liabilities of Crane But for many others, the report is
of the picture and a new entity called Bank. Dfcu then submitted its bid on “toothless” and it has made the entire
SIL Investments Ltd started managing December 20. investigation appear “a complete waste of
the assets of the three banks. SIL, the It was not until January 13 that a report time” and “resources”.
committee found, has been charging an prepared by PriceWaterHouseCoopers on

March. 01 - 07 2019 13
news analysis

How undemocratic practices


breed corruption
Transparency International’s CPI 2018 tracks link
between corruption and lack of citizen engagement

Lt. Col. Edith Nakalema, the head of the State House Anti-Corruption Unit chats with officials of Mbarara District Local Government on Feb.22. Her team arrested
several district officials following a tip-off from a whistleblower regarding several pieces of land that have allegedly been grabbed by senior district officials

By Ronald Musoke Intelligence Unit. scoring 10, 13, and 13, respectively. North

W
Whereas full democracies scored an aver- Korea and Yemen were next, each with a
hen Transparency International age of 75 on the index; flawed democracies score of 14.
released its 2018 global cor- scored an average of 49; hybrid regimes—
ruption perceptions index on which show elements of autocratic ten- Countries to watch
Jan.29, it found one damning dencies—scored 35; autocratic regimes According to Transparency International,
indictment: corruption is flourishing more performed worst, with an average score of Angola, Nigeria, Botswana, South Africa
in countries where democratic foundations 30 on the CPI. and Kenya will be “important countries”
are weak. More than two-thirds of countries sur- to watch, this year, given some promising
While releasing the results in Kampala on veyed scored below 50, meaning that cor- political developments. The agency says the
Jan.29, Peter Wandera, the executive direc- ruption is a more than average problem real test will be whether these new admin-
tor of Transparency International Uganda across the globe. istrations will follow through on their anti-
said the annual Corruption Perceptions Western Europe scored best among corruption commitments moving forward.
Index (CPI) ranks countries based on how regions, with an average score of 66 while In both Kenya and South Africa, citizen
corrupt a country’s public sector is per- Sub-Saharan Africa performed the worst engagement in the fight against corruption
ceived to be by experts and business execu- with an average score of 32. Only eight of is crucial. For example, social media has
tives. But the 2018 report included a cross 49 countries here scored more than 43. The played a big role in driving public conversa-
analysis of the CPI with different global global average score was 43; the same as in tion around corruption. The rise of mobile
democracy indices. 2017. technology means ordinary citizens in
The CPI is based on perceptions because Interestingly African leaders declared many countries now have instant access to
corruption generally comprises illegal 2018 as the “African Year of Anti-Corrup- information, and an ability to voice their
activities, which are deliberately hidden and tion.” opinions in a way that previous generations
only come to light through scandals, investi- Denmark was named the least corrupt did not.
gations or prosecutions. country worldwide with a score of 88, fol- Government officials in Kenya and South
Using a scale where zero is highly cor- lowed by New Zealand (87), while Finland, Africa are also reaching to social media to
rupt and 100 is very clean; the CPI is based Singapore, Sweden and Switzerland tied at engage with the public.
on surveys and assessments of corruption third place with a score of 85. On the other The Corruption Watch chapter in South
by bodies such as the World Bank, the Afri- hand, Somalia, Syria, and South Sudan Africa has seen a rise in the number of
can Development Bank, and the Economist remained at the bottom of the rankings, people reporting corruption on Facebook

14 March. 01 - 07 2019
news analysis
and WhatsApp. However, it remains to be “The same needs to happen here. We also put in the mechanisms that are going to
seen whether social media and other new need to respect systems that have been put ensure that the laws and policies are going
technologies will spur those in power into in place,” Odoy said shortly after the release to be enforced.”
action. of the 2018 corruption index in Kampala, Odoy appears to be referring to the inef-
Patricia Moreira, the Managing Direc- “The participation of citizens is also impor- fectiveness of the many anti-corruption leg-
tor of Transparency International said that tant in the fight against corruption; every- islations, policies, and institutions; including
with many democracies under threat, often body must participate in the fight against the Inspectorate of Government, the Audi-
by leaders with authoritarian or populist corruption.” tor General and the anti-corruption court,
tendencies, the world needs to do more to “We also realise that change of leader- that the government has come up with since
strengthen checks and balances and protect ship seems to be helping in the fight against President Yoweri Museveni assumed power
citizens’ rights. corruption,” he adds and points at the CPIs 33 years ago.
“Corruption chips away at democracy to of Namibia, The Gambia, and South Africa Just last December, Museveni unveiled
produce a vicious cycle where corruption which are improving. Lt. Col. Edith Nakalema to the Ugandan
undermines democratic institutions, and in Peter Kiwumulo Kabala, the Vice Chair- public as the newest anti-corruption captain
turn, weak institutions are less able to con- person, Transparency International Uganda in State House.
trol corruption.” Board says democracy goes beyond merely Museveni appointed Nakalema at the
having elections; which is what Uganda is time Uganda was commemorating the Anti-
Corruption paralyzing democracy very good at. He says, instead, democracy is Corruption Day, celebrated on Dec. 09 and
Transparency International says Sub- about empowering people. said she was “additional fuel” in the fight
Saharan Africa remains a region of stark According to him, Uganda is witness- against corruption in the country.
political and socio-economic contrasts and ing a rolling back of democracy through But Cissy Kagaba, the executive director
many longstanding challenges, with civil the recentralization of local governments. of the Anti-Corruption Coalition Uganda
strife, weak institutions and unresponsive The decentralization process, he says, was (ACCU) told The Independent that Uganda
political systems continuing to undermine aimed at empowering people at the grass- might have the institutions in place but the
anti-corruption efforts. roots to take decisions that are pertinent to question Ugandans should be asking is why
The global anti-graft non-profit says the realities in their communities. these institutions are not working.
while several countries have adopted demo- “When I was a local council councilor She says if the systems were working, we
cratic principles of governance, the would not have scandals like the
same countries are still governed by one in Bank of Uganda or the refu-
“authoritarian and semi-authoritari- gee numbers scandal in the Office
an” leaders. of the Prime Minister. Kagaba
It is not surprising that countries noted that the Auditor General
like Seychelles and Botswana, which continuously releases reports with
score higher on the CPI than other recommendations on how to han-
countries in the region, have rela- dle issues related to corruption but
tively well-functioning democratic these are never followed up.
and governance systems. “President Museveni has asked
Transparency International also the public to be proactive when
named Ivory Coast and Senegal for it comes to corruption but how
the second year in a row, among the empowered are the citizens?” she
significant “improvers” on the CPI. added.
These are countries that are said to Kagaba said in Rwanda, the
be pushing back against corrup- President has regular engagement
tion— with notable progress. with citizens where he, govern-
In the last six years, Ivory Coast has about 10 years ago, we used to enjoy a lot ment officials and citizens face–off, with
moved from 27 points in 2013 to 35 points of power to take decisions,” he says, “This citizens expressing their grievances openly
in 2018, while Senegal has moved from 36 is changing and we are seeing many of the as the President directs officials in charge of
points in 2012 to 45 points in 2018. critical decisions have come back to the cen- their dockets to respond.
Besides a raft of legal, policy and institu- tral government; this cannot be democracy.” In Uganda, the government has attempt-
tional reforms adopted in the two countries, Kiwumulo says if there is political will ed to replicate the initiative by coming up
political will is cited as being important in to fight corruption, Uganda can become as with the “Barazas” but these are yet to come
the fight against corruption demonstrated clean as Denmark which scores 88 while up with tangible results.
by their respective leaders. Uganda has 26 on the CPI. Going forward, Transparency Interna-
In East Africa, Rwanda is the top per- “What’s missing out?” he asks rhetori- tional says political leaders in Sub-Saharan
former with a score of 56. Rwanda is fol- cally, “They are human like us; we have the Africa; especially in Burundi, Mozambique
lowed by Tanzania (36), Kenya (27), Uganda policies and other things that can enable us and Congo need to ramp up their efforts by
(26) and Burundi (17). But what is more do a good job in this area.” demonstrating visible commitments in the
interesting is that Rwanda’s score is twice “We just need to change our attitudes, fight against corruption.
that of Uganda. Many ask what Rwanda that of the common citizen, leaders and offi- Political leaders must also show commit-
could be doing right that Uganda has failed. cers working in these institutions. It is only ment in protecting human rights defenders,
John Mary Odoy, the Chairperson of through these that we shall be able to score political analysts, anti-corruption crusaders
the board of Transparency International highly.” and investigative journalists so they con-
Uganda who also doubles as the Executive Odoy adds that in Rwanda, for example, tinue speaking out on corruption.
Director of Citizen’s Platform for Democ- citizens are sensitized on issues of corrup- “They should further improve the
racy and Accountability says when one tion and as a result, they understand the health of democratic institutions. This
follows up countries that score highly in the effects of corruption. includes supporting participation, trans-
CPI, it is clear they practice democracy and “So it is not only important to put the parency and trust, along with the neces-
good governance. legal and policy frameworks in place but sary checks and balances.”

March. 01 - 07 2019 15
feature

Lions in Queen Elizabeth National Park have the knack for climbing and resting in tree branches.  INDEPENDENT/RONALD MUSOKE

Tracking lions in
Queen Elizabeth Park
It is easier to encounter the tree-climbing lions
but efforts to protect them remain controversial
By Ronald Musoke Kisembo led us to the northern plains of the to digest the steak,” Turyamuha said, “But

L
park; only allowing us short stops to view also, their high panting rate is due to lack
ions are a must-see in Queen buffaloes swirling in a pool of mud; kobs of sweat glands; their sweat glands are
Elizabeth National Park in western rummaging on patches of dry grass and only localized around the mouth and their
Uganda and yet their reclusive na- waterbucks cooling off under tree shades. paws.”
ture sometimes makes it a frustrating About 45 minutes later, Kisembo beck- It is not clear why lions in this park climb
experience for visitors. oned us to stop and without uttering a trees but Turyamuha suggests it is probably
On a recent conservation study tour to word, he pointed us to a thicket under due to global warming.
the park, almost everyone in my group which a juvenile lion lay beside a severed “These animals are quite sensitive to
admitted to never having seen a lion in the head of a buffalo, its shredded hide and the environment,” he says, “It is possible
wild. other entrails. a warming world has made the ground a
As we embarked on our game drive in We gasped and sighed with both awe little hotter and therefore uncomfortable for
the late afternoon of Feb.6, after a chat with and excitement.We clicked away our the lions which spend a lot of time resting.”
Edward Asalu, the Chief Warden of the cameras and yet the young lion seemed “Climbing up and resting in the branches
park, we reiterated our collective frustra- unbothered by our curiosity. Just metres helps them cool off,” he adds.
tion. away, Kisembo found the bigger group of As our safari guide, Ismael Katamba,
Asalu did not promise anything to the five perched onto the knotty branches of a moved the car around for us to observe the
group but made a phone call from his office candelabra euphorbia tree. cats at close quarters, we noticed one with
at Katunguru in the north of the park. With- The day had been a hot one even for us a collar similar to one you would see round
in minutes, a youthful ranger joined us. humans but, we were told it is normal for the neck of a well-fed pet dog.
Armed with a rifle, Innocent Turyamuha lions to take a siesta after feasting on prey. That’s when Turyamuha began telling us
got into our emerald green safari van and Hours earlier, the lions had just finished why it is not unusual these days to see some
just ahead of us was, Jimmy Kisembo, devouring a big mature buffalo that prob- lions in the Queen Elizabeth Park with what
another park ranger on motorbike. With a ably weighed over 200kg. But we were also he calls“radio collars.”
rifle slung across his chest, Kisembo would surprised by their heavy panting. “The collars have batteries and are elec-
guide us on the late-afternoon game drive. “Lions feed at the top-most level of the tronically configured to certain frequencies
Driving on a flat narrow murram road, food chain and that requires a lot of energy with which the park rangers use the GPS

16 March. 01 - 07 2019
feature
system to track the lions,” he said. At 1978 sq km, Queen Elizabeth National low their health status, movement patterns
“Every morning we ensure that we get to Park is one of the biggest parks in Uganda. in our quest to preserve their status in the
find out where they are. We cannot be sure It has three main water bodies; Lake park.”
we will find them in the same place tomor- George, Lake Edward and the Kazinga Alongside this initiative is a team of rang-
row because lions range a lot.” Channel which links the two lakes. ers stationed within the communities which
Turyamuha explains that in an area of These water bodies have six landing sites is always ready to respond to whatever
low prey density, lions can range within 40 between them, including; Hamukungu, happens when they notice lion movements.
sq km and where the animals of prey are Kahendero, Katunguru and Kasenyi, on “These lions have satellite callers which
even fewer; the lions can expand their ter- Lake George and Katwe-Kabatoro and are monitored through the satellite system,”
ritorial range as big as 400 sq km. Kayanja are on the Ugandan side of Lake he adds.
“In an area that has got patches of human Edward which straddles the DR Congo. “A map has to be downloaded every
settlements, that would be dangerous for Close to 20,000 people are said to depend day to help us find how closer to the com-
both people and lions because the animals on the fishing activity from Lake George munity, the lions are. When we realise that
are not able to tell where the park boundar- and the Kazinga Channel and another esti- they are closer, especially, pastoral villages,
ies stop,” he said. mated 15,000 depend on the Ugandan side we alert the rangers and scouts who also
“By using the radio tracking devices, we of Lake Edward. alert the communities to move their animals
follow them every day; like today, yester- Edward Asalu, Queen Elizabeth National away from the lions’ range or park bound-
day and tomorrow, we will be able to know Park’s Chief Warden told The Independent aries.”
where every other group is located with that the conservation area under his watch “That means that the cows that would
respect to the distance from the community is gazetted by UNESCO as a man and have died that particular day get saved and
land where they can face challenges.” biosphere reserve, meaning that human when the people see us monitoring across
activity is permitted to go on alongside con- the park boundaries, between their land
The lion massacre servation. and protected area land, they know we are
Almost a year ago, Kisembo and Tury- But this special status has also led to in control.”
amuha were reduced to tears when they one of the most disturbing relationships This appears to be a marked improve-
discovered the remains of 11 dead lions between the beasts and man. And in recent ment from a year ago when the Hamu-
near Hamukungu fishing village on the years, it is the cats that have come off worse. kungu community told Prof. Ephraim
northern frontier of Queen Elizabeth Asalu says that in the beginning, the Kamuntu, the Minister of Tourism, Wild-
National Park. The death of the lions fishing villages were gazetted for purposes life and Antiquities in a hastily arranged
alarmed many conservationists, both local of fishing. But back then, as in many other meeting that they lived in constant fear of
and international. parts of Uganda, the human population the lions yet the UWA rangers are hardly
From the small signpost marked with was quite small. Not anymore. People have present in the communities. Whether the
big black letters reading, “Community No increased in number and they have over- presence of rangers in the communities will
Access,” Turyamuha says we are about 1km fished the water bodies. boost confidence remains to be seen.
from last year’s harrowing incident. “After depleting the lakes, the communi- As our guide on motorbike gave our
We are surprised we found these lions ties had to look for alternative sources of driver the signal for us to leave the park
within range of the death spot but the livelihood and so they started rearing goats because we are not allowed beyond 7pm, I
youthful ranger tells us that the lions cannot and cattle and this is the source of the con- stole a final look at the collared lion that was
tell where the park boundary stops. Tury- flict,” Asalu told The Independent. now awake but still in a sleeping position.
amuha has never come to terms with the “The lions have since learnt that it is I wonder if collaring lions does not take
loss of the pride of 11 lions. much easier to get a cow or goat than the away the “wilderness experience” when a
“We never imagined this situation wild animals like Kobs which are adapted first time visitor like me encounters one.
because we used to involve the com- to the jungle.” Turyamuha agrees. But, he says, those
munities in the protection of these lions,” Saving them is critical and that is why are some of the choices that conservationists
Turyamuha says, “We have community the park’s management has since come up have to weigh on a daily basis.
scouts who are trained to handle problem with several initiatives that are all geared at “What is better between an animal get-
animals once they stray in the communities, lessening the interaction between the com- ting killed and it getting inconvenienced
we get reports and we take the necessary munities and the lions. with a collar to ensure it at least survives for
responses; but that day, nothing of this sort the next 15 years?”
happened.” Collared lions He adds: “We don’t just collar any
The park has since improved its surveil- The park’s veterinary department which individual. We don’t collar pregnant or
lance to protect the lions which the Inter- monitors animal health has been working lactating individuals or even those that are
national Union for Conservation of Nature with the rangers and the Uganda Carnivore younger than two-and-half-years.”
(IUCN) describes as vulnerable. Programme officials led by Dr. Ludwig Sief- He says, in any case, collaring the lions
A study published in the journal, “Pro- ert to select individuals for collaring. in the park is an expensive venture. Just
ceedings of the National Academy of Sci- Although the radio collar programme one radio collar goes for perhaps US$ 3,000,
ences,” in 2015 noted how Africa’s lion in the park has been an ongoing initiative not to mention the expenses in constant
population is fast declining with present since the late 1990s, the Wildlife Conserva- monitoring. Turyamuha says there are
statistics putting the number across Africa tion Society, the Uganda Wildlife Authority currently 13 lions collared in the northern
at 20,000. and the Uganda Carnivore Programme has part of the park. He says it is worth the
The Oxford University scientists said recently embarked on collaring more lions effort.
there is a 67% likelihood that the number to improve their monitoring. “There are other natural forces
of lions in Central and West Africa would “We normally pick the dominant female threatening the survival of these lions; like
drop by half within two decades. In East because wherever the dominant female climate change but, if these rare animals are
Africa, for lions in Serengeti National Park, is, it is followed by many other females,” to survive, we must be active and closely
the probability is 37%. In Queen Elizabeth Turyamuha says, “Having the dominant monitor them.”
National Park, the park managers say the female collared gives us a chance of finding
number hovers around 120. out where others are and it is easier to fol-

March. 01 - 07 2019 17
interview

I disagree with Prof


Mahmood Mamdani
Deus Kamunyu Muhwezi (PhD) is the chairperson of
Makerere University Academic Staff Association (MUASA).
He spoke to The independent’s Agnes E Nantaba about the
troubles at Makerere University that led to his suspension.

What does the suspension mean to you sues and processes that serve the common source manual, what are the other key

T
and MUASA? good. There were already formations who challenges cited by MUASA?
his is my greatest challenge as chair- were aligned to take up future council The hostility of management to opinion
person MUASA because I was sus- positions and yet the Rwendeire Report and the performance of the former council
pended as a lecturer for performing demanded for the reconstitution of council are some of the other challenges. Our argu-
my duties as MUASA chairperson. members; something that we have always ment is that this hostility should end and
What gave birth to this conflict was the sus- pushed for but didn’t go well with some allow for more engagements that mean
pension of leaders of staff associations and leaders. We, however, appreciate that at well and build our society together. We
that caused stampede which resulted into a least the government responded and gave don’t want to be part of management but
one month strike. But in the circumstance, us representatives under the leadership of we are stakeholders and we must therefore
staff felt that it’s not good to hold students Lorna Magara whom we believe will ef- be understood from that angle. The issues
and parents at ransom now that issues fect improvements in the system. With the also stem from bad governance that had
have been forwarded to council in place, there will be stability, some taken root in the institution; including
council. It’s reforms and systems will begin to work and poor management of resources. All these
challenging government shall be served with the right undermine the way we work as associations
but as a reports going forward. - squeezing us on the wall. Once that has
leader, I been attended to and we begin to tolerate
expect- Does that mean that the issues of Maker- and appreciate opinions, there will no more
ed an ere University are leadership oriented? issues. For instance, the law school just gave
uphill Makerere problems arise from leadership. a mere opinion but it caused someone to
task For instance, the manipulation of the human threaten closure. That proves intolerance
arising resource manual is leadership oriented. and hostility. We have also heard some peo-
from That is why I disagree with Prof Mahmood ple declare that it is time for propaganda
talking Mamdani who is going around painting and that is partly what we see everywhere
about is- MUASA as a bad group. He is a part of including the media. This is just a simple
the problem because the human resource industrial dispute about rights and wellbe-
manual was partly amended to accom- ing of workers. From my side, it has noth-
modate him. I would rather he thinks ing to do with regime change as invented
about how that could undermine the by some people and we can’t be part of the
way we feel about our employment propaganda theory to this level.
system not as individuals but as a
team. MUASA is expected to ask MUASA has focused on the unlawful
questions that would enable suspension of its chairman and leaders of
us to be fairly treated in an other staff associations. What are the un-
employment system. If rules derlying issues in the suspension process?
are changed for the benefit On the advice of lawyers, we have been
of one person, it complete- told that the vice chancellor has no powers
ly undermines the trans- or direct responsibility to suspend an asso-
parent functionality of ciation leader or academic staff. The head
the system. of department should have been involved
in the whole process. However, what we
Apart from see are our activities being misconstrued to
the manipu- mean our personal engagements with the
lation of Vice chancellor as workers; forgetting that
the hu- the Unions Act and other Acts provide for
man our positions and that sometimes we have
re- to ask the hard questions as part of our
mandate. That is where the Vice chancellor
misinterprets our activities as association
leaders to be personal engagements;
forgetting that we are merito-
riously in office and that as
leaders, sometimes we have to

18 March. 01 - 07 2019
interview
ask the hard questions for the good of the By Sarah Stitzlein
university.

How best should the suspension have been


handled?
Teach students to dissent
I don’t think the law provides for my In a democracy, dissent offers the opportunity
suspension as MUASA chairperson. There
are established procedures for removing a
to determine if a law and system is just

I
leader of an association including petitions,
call for general assembly and disposal of n scenes unprecedented in previous ignites change to better align practices
errant leaders all of which never happened. school shootings in the USA, March 2018 and policies with the wishes and needs of
That was a mandate of fellow members and was marked by students taking to the the people. It keeps democracy vibrant.
if they wanted, that would have been the streets, to the media, to corporations and
path. To suspend me as a representative of elected officials in protest over gun practices Dissent is a democratic tradition
the staff is going off the board. If I erred as and policies. Often, we think of student protest as a
a lecturer, my head of department should Responses to these teens have been type of public self-expression that should
mixed. Some have celebrated their pas- not be hindered as long as it meets cer-
have been the originator of the suspension
sion. Some concluded that the students tain criteria, like not preventing other
being my direct supervisor. There is a fusion
are immature and don’t yet fully grasp children from learning. Democracy
of things that keeps us wondering how we
longstanding issues over gun practices requires the consent of the governed.
got here and yet the university has a whole
and policies. Some questioned the voices The American Declaration of Indepen-
directorate of legal affairs.
and perspectives of the teens. Still others dence even says that when we are not in
see the protests as an inappropriate use agreement or when our well-being is in
Where does the suspension of staff leaders jeopardy, we have a duty to speak up. It’s
of time that might be better spent.
and the strike leave the glory of Makerere Some schools even threatened to take the American way and has been from the
University? disciplinary action against students for time the nation began.
It sets a precedent which staff were trying engaging in protests during school hours. It is only with the opportunity and
to fight against. It shows that if manage- This prompted universities like my own capacity to dissent that we can deter-
ment can hack MUASA and other staff to promise students that disciplinary mine if our laws and systems guiding
associations leaders because of an academic actions that stem from peaceful protest us are good or just. Further, in order to
exchange and a difference in opinion, then will not be held against them when they invoke our right to dissent, citizens have
they can do it to anyone else. We can’t allow seek college admission. to know how to dissent, which calls into
connecting politics to it and stampeding play the role of schooling.
people. Makerere cannot be stampeded by What schools should do As a scholar in the philosophy of educa-
one decision maker because it’s a university Immediately after the Parkland shoot- tion, I would argue that our children, as
with a legacy that will continue to shine. ings, some scholars urged society to burgeoning citizens, are entitled to such
consider “the nature of education and an education in our schools.
Now that the staff grievances have been schooling in American society.” Indeed, There, they should learn the skills of
escalated to be handled by the University we need an educational response to the dissent, including consciousness-raising,
Council, what does it mean to the entire shootings. This response should account coalition building, persuasion, public
review process? for the purposes of schools within a demonstration and pursuit of traditional
The council committee would have been democracy and offer students opportuni- government avenues for change. This
the rightful organ to handle the cases if I was ties to learn, even in the face of tragedy. type of instruction is happening in some
lawfully suspended. I have always respected As the author of a new book on how schools, but not systematically enough
the rules and if that is where we go next; let’s schools can get students to become more across all schools, as courses in civics
go there and see what comes out. But also, civically engaged, and a 2012 book on and social studies have been cut in order
let’s attend to other matters arising from how schools can cultivate the skills nec- to focus on testing and such. Students
court because there is a case that requires essary for political dissent, I contend that receive even less of this kind of instruc-
court to look into the circumstances under the student protesters that have emerged tion in poorer schools.
which I was suspended. in the wake of the Parkland shooting And, our students must learn about
offer insight into a worthwhile response. the responsibilities of citizenship that
What is your next step? While seldom acknowledged, students correlate with their right to dissent. This
Suspension expired after one month and have a right to engage in political dissent includes learning how to evaluate the
within that time; I should have been given and, more significantly, the entitlement justice of laws, how to distinguish effec-
a report by a competent committee which to an education that nurtures their ability tive dissent from simple rabble-rousing,
never happened. We are waiting for the to do so. In the 1969 landmark Tinker and how to protest in ways that do not
appointments board to consider us in the case, the Supreme Court ruled that stu- unduly infringe on others.
circumstance and see how we will go for- dents do not “shed their constitutional Teaching children how to dissent
ward. Staff gave one month for these issues rights to freedom of speech or expression in response to a violent situation that
to be addressed and we hope that they will at the schoolhouse gate.” But, the court they feel threatens their well-being is
be resolved competently by Council. We held, it is reasonable to limit protest aligned with the purposes of democratic
rejected the committee formed by the vice activities that interfere with the oppor- schooling. Indeed, a flourishing democ-
chancellor; especially him being the com- tunity for others to learn. The right to racy depends on such an informed and
plainant, prosecutor and judge because it dissent is not explicitly stated in the Con- active citizenry who will speak out when
wasn’t appropriate. Now that it’s been taken stitution, but rather is a civil right that they find laws to be unjust.
to appointments board, we have confidence arises out of how we understand good Sarah Stitzlein is Professor of Education and
citizenship and thriving democracy. Dis- Affiliate Faculty in Philosophy, University of
that the merits of the case will be handled
sent allows for a proliferation of views on Cincinnati
appropriately.
the good life. It sparks conversation and Source: theconversation

March. 01 - 07 2019 19
advertorial

Umeme is an exemplary
company in East Africa

N
ational Social Security Fund (NSSF) should lead to higher earnings for the
is the single largest shareholder of company.
power distributor, Umeme. It has In addition, according to NSSF, the
earned Ush32.1 billion in dividends demand for electricity is growing at over
     $   10%, a faster pace than supply, and with
the power utility. more energy projects coming to fruition

$     in the next few years, the company
in 2012 and four years later, increased the is well positioned to take advantage

23%
stake to 23%, making it the single biggest of that opportunity. And Umeme has
shareholder in the power distributor. STAKE IN demonstrated competency to do this.
“Umeme is one of the Fund’s best UMEME The Fund primarily would like to
performing equity investments, and one MAKES NSSF THE SINGLE invest more in Uganda, so investment in
of the best performing listed companies in Umeme Limited provided us with a great
East Africa,” says NSSF’s Managing Director, BIGGEST SHAREHOLDER opportunity to invest at home, notes
Richard Byarugaba. Byarugaba.
The Fund’s investment into Umeme was also driven by Most importantly, Byarugaba explains, “the investment was
the desire to increase access to electricity, which has a direct in line with our statutory mandate to judiciously invest NSSF
impact on the country’s socio-economic development. members’ savings, and our Investments Strategy, to enable us
pay a competitive return to our members.”
“We see the role Umeme Limited plays in enabling
access to electricity as very critical in Uganda’s development Byarugaba adds that the investment into Umeme also
journey,” Byarugaba adds. “Uganda still has one of the lowest $  

"  !  !  


electricity consumption per capita levels in the world, with portfolio, a key component of their Corporate Strategy to
only an estimated 23/26% of the population having access to grow the Fund to Ush20 trillion by 2025.
electricity.” # $   !   
Owing to this, NSSF sees Umeme’s future as a successful areas like the energy sector,” Byarugaba adds.
business because the ever-increasing demand for electricity

12 UMEME POWER: Transforming Uganda

UMEME 20
Power Book.indd 12 March. 01 - 07 2019 12/8/18 10:1
advertorial

 
 





 
 

UMEME
March. 01 POWER: Transforming Uganda 2113
- 07 2019
Isimba Dam

Karuma, Isimba and


U
By Isaac Khisa

ganda’s planned commis-


sioning of the multi-million

electricity tariffs
dollar Isimba and Karuma
Hydropower projects on the
downstream of River Nile is
expected to put government
on the spot as sector players expect electric-
ity tariffs to reduce.
The two dams with a combined capacity
New investors could trigger a
of 783MW will see the country nearly dou-
ble its electricity generation to 1,633MW,
drop in electricity costs
a development that the government has
consistently said will ease electricity tariffs the more than 200MW of electricity that is kWh while tariffs for street lighting
for consumers. unutilised. dropped by Shs51 to Shs701.9 kWh.
However, a section of consumers say Agaba said consumers were promised But the current electricity tariffs are still
chances of reduction in electricity tariffs are lower tariffs for electricity when Bujagali higher compared with five years ago. In
minimal owing to the lop-sided terms and was commissioned but nothing of the sort 2014, domestic consumers whose usage is
conditions in the power generation agree- has so far happened. more than 15 units per month were paying
ments that favour investors. “The prices of electricity might even Shs518.6 kWh. Similarly, commercial con-
“Many concession agreements between increase given that the conditions for the sumers were paying Shs452.5 kWh while
Uganda and generation companies have earlier debt for Bujagali remains and now medium and large industrial consumers
constant costs like generation, transmission, add on the Chinese debts that will also were paying an average of Shs450.1 and
debt service and staff costs that still have be required to be paid at the same time,” Shs308.5 KWh respectively.
to be paid whether power is consumed or another source said.
not…it is these costs that inform the final This is happening at the time the govern- Private sector remains optimistic
price determination paid by the end users,” ment plans to launch the US$570million The private sector that includes big
said Denis Dan Agaba in reference to the Isimba Hydropower Dam in March and the consumers like manufacturers, however,
250MW Bujagali Hydro Power project. US$1.7billion Karuma Hydropower Dam say the electricity tariffs are likely to ease
The current electricity tariffs are structured later this year. The two dams were funded but only if government continues to attract
in such a way that even if electricity is not pur- with a loan from the China Export Import more investors into the country to consume
chased, the money for the Bujagali power dam Bank (China Exim Bank). the excess power generated.
must be paid. It also coincides with the latest consumer “It is true that the additional electricity
The US$900million Bujagali Dam was com- tariff schedule of Electricity Regulatory from the two dams could drive electricity
missioned in 2013 and the investors includ- Authority (ERA) for the first quarter of tariffs downwards. However, this will also
ing the Aga Khan Development Network this year that saw domestic consumers depend on how government sources for
have up to 15 years to recoup their capital. pay Shs718.9, down from Shs771.1 kWh, more investors so that more electricity is
Available data shows that Uganda’s small scale industries at Shs648.3, down consumed,” said Moses Ogwal, the policy
installed generation capacity is currently from Shs687 kWh and medium industrial and advocacy officer at the Private Sector
about 850MW – including 100MW from consumers paying Shs592.5, down from Foundation Uganda.
the heavy fuel generators – but effective Shs615.3 kWh. Martin Kyeyune, the finance and economic
demand is about 600MW. Electricity tariffs for large scale industrial advisor at the Uganda’s Roofings Group, the
This implies that the government pays for consumers fell from Shs383.8 to Shs375.5 producer of steel products supplied across

22 March. 01 - 07 2019
business

UEGCL implements
CDAP a head of
Isimba Dam launch
By Isaac Khisa that the extension of water services in

T
their areas has eased their lives.
he multi-billion dollar Commu- “We have indeed been suffering
nity Development Action Plan over the past period struggling to look
at Isimba Hydropower Project for since the dam construction started
has started, clearing the way for because they could not allow us near
construction and upgrading of schools, the river,” she said.
health Centres, latrines and clean water Another resident found at Buluya
supply in Kayunga and Kamuli Dis- Health Centre II in Kamuli District
tricts. revealed that it has been tough for them
The two districts shares the dam on to access various health services espe-
the downstream of River Nile, and it is cially those that required specialized
slated for commissioning next month. treatment.
East Africa, said the mushrooming industries coun- Uganda Electricity Distribution Com- Isimba Hydropower Dam is current-
trywide gives them hope that tariffs will drop once pany, a government agency responsible ly undergoing test trials ahead of com-
the two dams come on board. for development and operation of missioning next month and subsequent
“We are seeing many companies coming up. This Isimba Hydropower Dam, broke the handover of the facility to UEGCL for
is in Kapeeka, Tororo, Namanve, Mbale, among ground for classroom works, health operation and maintenance in April this
others and we hope this will see electricity tariffs centres and boreholes, estimated to cost year.
ease,” he said. Shs 5.5billion. The commissioning of the Dam is
Musa Mayanja Lwanga, the Head of Research CDAP is a government programme expected to boost the country’s electric-
and Market Development at Uganda Bankers’ Asso- whose aim is to mitigate the social chal- ity to the national grid to 1033 to meet
ciation says evacuation of the additional electricity lenges that arose from the construction the growing demand that is said to
to the national grid coupled with creating an envi- of the 183MW Isimba Hydropower be growing at 10% per annum. The
ronment that will attract investments could drive Dam. dams is also expected to provide reli-
the electricity tariffs downwards. The scope of the Plan includes provi- able electricity and energy output for
He said there is a possibility of the low-priced sion of improved health care, educa- Uganda and the neighboring countries.
electricity supply in the new dams to subsidise the tion, clean water, latrines and electricity. This new development comes at
already highly priced electricity generated from UEGCL Chief Executive Officer, Har- the time electricity consumption in the
other dams and therefore a reduction in tariffs. rison Mutikanga, said the community country at the current 215kWh per per-
The electricity from Isimba and Karuma hydro- developments are aimed at ensuring son per year remains lowest in Africa.
power dams is expected to be sold at US$4 cents that the lives of the people living near On average, the poorest people in sub-
kWh compared with the US$8 cents from Bujagali the dam is not affected. Saharan Africa consume 552kWh per
hydropower dam. “Prior to implementation of this person per year.
“The additional electricity could also be exported project, a section of people near the However, it remains unclear on how
to the neighbouring countries leading to increase in dam depended on fetching water in R. much consumers will pay for the elec-
Nile. Now they cannot do that because tricity generated even as UEGCL plans
consumption and a drop in tariffs,” he added.
after embankment, it looks less like a to sell electricity to the national grid at
ERA’s view on electricity tariffs lake and people can’t fetch water from US4 cents per unit lower than the cur-
there,” he said. “So, the best alternative rent US$8 cents being offered by the
Julius Wandera, the Communication Manager
was for us to drill for them boreholes.” Bujagali Hydropower Dams.
at the ERA, a government agency responsible for
He said the company also decided to
setting tariffs, told The Independent that the electric- extend other social services including
ity generation coming on board from Isimba and schools and health services as a way
Some CDAP beneficiaries in the
Karuma could drive the tariffs downwards as the of giving back to the communities that two districts
debt repayment for their construction is not embed- were affected by the dam project.  Nakandulo Primary School
ded to the tariffs. Rebecca Kadaga, the Woman Mem-  St. Peter’s Kibuzi Sec School
“Money for repayment of the loan will come from ber of Parliament for Kamuli District  Busaana Sec School
the treasury and not through the electricity tariffs,” and Speaker of the Uganda Parliament  Busaana Health Centre II
he said. Even if it is to be embedded on the electrici- as well as Amos Lugolobi, the legisla-  Nakakandwa Primary School
ty tariffs, Wandera said the government is putting in ture for Ntejeru South Constituency in  Namusara Health Centre II
all efforts to attract more investors into the country Kayunga District applauded UEGCL  Lwanyama Teachnical Institute
so as to increase electricity consumption and drive for the new community development  Kayunga Health Centre II
the tariffs south. in their areas.  Mbalamuti Health Centre II
He said the electricity distributor, Umeme, has Daisy Kisakye, a resident of Nampa-  St. Andrews Primary School
also intensified efforts to improve the quality and nyi Village, Busaana Town Council in  Bukamba Health Centre II
reliability of electricity to the industries so as to Kayunga District told The Independent  VIP latrines and toilets in both
increase on the electricity consumption. districts

March. 01 - 07 2019 23
business

Mobile Money tax regressive-


Tanzania’s Benno Ndulu
Good innovations but utilization needs to be boosted
By Ian Katusiime gateways like Payway, micro insurance,

W
digital micro credit and loan disbursements
hen one talks about financial like MoKash, and mobile money cross
inclusion in Uganda, it is al- border payments such as the collaboration
ways mobile money that comes between MTN and M-Pesa.
into their minds first. The mo- However in spite of all these wonderful
bile money system is now entrenched and is innovations, he says, there is still a usage
even a substitute for banks. problem that follows all of them. “Of all
Mobile money has successfully brought the 690million mobile money accounts in
on board ordinary people involved in the the world, less than a quarter are ‘active’”
informal sector in the money transfer busi- Ndulu regretted.
ness. This measure of being active is for those
So when Prof. Benno Ndulu, the former who use the accounts over a ninety day
Governor of the Central Bank of Tanzania period.
took to the podium as the Guest Speaker
at the 26th edition of the Joseph Mubiru Low utilisation
Memorial Lecture on Feb.20, he knew the In spite of the all the wonderful financial
magnitude of the mobile money sector to innovations, there is a problem of utilisation
most of the members of his audience at with almost every product. “Despite the
Kampala Serena Hotel. cellular expansion, there is less than 12% of
Prof. Benno Ndulu
Ndulu has been a regular visitor to Kam- population in low income countries who
pala and was therefore familiar with most “regressive”. He noted, “They do not use the internet, notwithstanding the high
of the topical issues in the financial and eco- discriminate across ability to pay”. ownership of smartphones.” Ndulu said.
nomic sector of Uganda. He cited the cost of the smartphone
Ndulu’s speech had a great deal of an Impressive statistics & innovations that has dropped by 50% across the region
East African context and it was not sur- With the aid of a PowerPoint compared to about five years ago yet those
prising when he labelled the region as the presentation, Ndulu spoke glowingly who own smartphones, only a measly 15%
“cradle of mobile money”. M-pesa that is about the strides Uganda has made in use them for financial services.
founded in Kenya is a trailblazer across the financial inclusion and innovation. He was This was also related to his earlier
continent when it comes to mobile money impressed that Uganda had made a leap concern of inactive mobile money accounts.
services. from 52% in 2013 of people using formal The utilisation shortfall was elaborated by
Speaking under the theme “The role of financial services to 58% in 2018 according Rashmi Pillai, the Acting executive director
financial innovation and inclusion in scal- to Finscope, a financial data aggregator. of Financial Sector Deepening Uganda
ing up growth in Uganda,” Ndulu gave a In 2009, the percentage stood at 28%. The (FSDU) who was the discussant of the
preamble of thoughts before he delved into former governor was happy to point out speech.
the achievements of financial innovations in that six out of ten Ugandans are able to use She wondered why most of the financial
Uganda. a digital payment today. transactions were person to person and
First, he urged a move from financial Ndulu said there was a lot to celebrate why there was not more sophisticated use
inclusion to universality to bring on board about innovation in terms of growth such as of financial technology and other services.
the 22% that are financially excluded. the rise of agent-based services in contrast “There is a huge access and usage gap,”
Secondly, he called for more utilization, to the brick and mortar businesses. Pillai commented.
stressing that even those who have mobile “Previously a bank needed a certain level She added that agents tend to coalesce
money, only a small fraction are active. of investment to set up a branch now thanks around areas of economic activity in the
Thirdly was taxation, a statement that to this innovation, which is not the case urban areas denoting another aspect of the
elicited a wild applause. “When there is a anymore,” he said. access-usage gap. She paused questions
momentum of leapfrogging success, there Related to the agent based services, he on whether this gap can be reduced. “Are
is a temptation to tax it like hell,” Ndulu hailed the reduction of face to face cost people incentivised to have mobile money
remarked. “By overtaxing, you are discour- thanks to digitization. savings? Are we building financial markets
aging this set of services and you under- He also cited the use of big data in for big volume digital payments?”
mine the tax base,” he added. banking and block chain technology, the Pillai described Ndulu as a “forward
His third sentiment resonated well due latter being the latest controversy to roil the thinking central banker” and lauded him
to the controversial tax that was levied world of financial technology in the last for the various innovations he introduced
on mobile money at the beginning of the year. when he was at the helm of the central bank
current financial year. He also bemoaned Ndulu applauded the innovations in in Tanzania.
the fact that mobile money taxes are the financial market such as mobile money

24 March. 01 - 07 2019
business

Kenya’s pension firm


enters Uganda market
By Julius Businge lio and the rest controlled by small schemes. Managing Director Richard Byarugaba said

A
With more players joining the market, the pension sector currently faces challenges
new pension administrator, En- Martin A. Nsubuga, the acting chief execu- relating to low investment and savings
wealth Financial Services, has tive officer for URBRA said, more products culture, informality of the economy, lack of
entered Uganda’s pension market would be put to the market and regulation liquidity, poor infrastructure, limited under-
upon securing an operation license will be enhanced. standing of insurance and pension sector
from the regulator, Uganda Retirement Ben- “We are also adapting to modern super- opportunities.
efits Regulatory Authority (URBRA). visory tools to ensure that people’s sav- He said partnerships amongst key play-
The firm that joins nine other pension ings are secure,” Nsubuga said, adding ers, and support from the regulator could
administrators in the country plans to offer that this development is also expected to help reverse the trend.
pension retirement services, training and increase people’s appetite for saving that He, however, said more entrepreneurship
consultancy services. has remained low. The 2016 World Bank innovations and the move from mandatory
Founded in 2011 in Kenya, it currently figures shows that Ugandans save around schemes to voluntary schemes are slowly
manages pension assets worth over Shs2tril- 5% of their monthly earnings compared to defining the current and future status of the
lion for 120 clients in 12 countries within 23% for Kenya, 13% for Tanzania and 18% pension sector. Currently, only about 2.4
Africa. for Rwanda. million (14%) of Uganda’s workforce is cov-
Nelson Kuria, the company’s chairman Nsubuga said that they did due diligence ered by National Social Security Fund, Pub-
Board of Directors said at the unveiling on the company and its top managers lic Service Pension Scheme, Parliamentary
event held at Sheraton Hotel in Kampala on before granting them a license. Pension Scheme, Supplementary Voluntary
Feb.21 that they are bringing to the market He said the new pension administrator Occupational Schemes and Supplementary
innovative social security financial ser- Voluntary Individual Schemes.
vices powered by new information tech- The low coverage is attributed
nology functions. They are also offering to the current retirement benefits
financial literacy education programmes system that was designed to cover
to the small and medium enterprises. workers in formal employment.
“We are passionate about value propo- Yet, the country’s informal sector
sition,” Kuria said adding, “We have done accounts for more than 86% of the
visibility studies to inform sustainability country’s total workforce, according
of our business. Our products and services to the Uganda Bureau of Statistics
are driven by research.” of 2017.
For now, Kuria said they are not look- It is estimated that by 2050, the
ing for profits. ageing work force in Uganda will
“Our driving force is a long term per- comprise of, for the most part, the
spective; we have confidence in Uganda’s self-employed and laborers in the
economy which has potential to grow,” URBRA’s Acting CEO, Martin Nsubuga (2-L) leads other officials at informal sector, to whom retirement
he said. the unveiling ceremony of Enwelath’s services in Uganda. benefits and old age security provisions
The company is targeting 60% clients in are unavailable.
the corporate arena; 30% in the small and
medium enterprises space and 10% operat- would bring in high level of professionalism Enwealth products at a glance
ing within the informal sector space. that will boost the sector’s growth. “This is  Post-retirement healthcare fund: This
value addition to the sector,” he said. “They enables retirees to access good quality
The products are ranked highly in other markets.” healthcare during retirement
The firm’s executives said they are intro-  Enwealth personal pension scheme: it
He said that based on their research,
ducing sustainable retirement investment is a long term investment product that
Enwealth is bringing in the market exper-
options that provide a regular cash-flow allows individuals to contribute to build
tise, innovation, and a culture of integrity
during retirement such as income draw up their retirement fund
and compliance to the regulatory provi-
downs, diaspora and expatriates fund as  Enwealth umbrella fund: it is a fund
sions.
well as post-retirement healthcare fund to whereby many employers decide to
Beyond Enwealth, he said URBRA is
guarantee security in retirement. participate in retirement investments
currently encouraging players to enhance
Currently, Uganda’s pension sector together as a pool for cost cutting/shar-
corporate governance function in order to
covers only about two million of the popu- ing
strengthen the sector’s growth by protecting
lation, representing less than 10% of the  Income draw down fund: it gives pen-
assets of owners.
country’s 34.5 million people. The sector sioners an alternative to the annuities,
In addition, he said that they are confi-
contributes slightly more than 9% to the where the retiree is able to draw down
dent Enwealth will provide well researched
country’s Gross Domestic Product. on their pension while the residual is
information on issues affecting financial ser-
This new development comes as the lat- still being invested
vices, social security and employee benefits
est data from URBRA shows that the sec-  Enwealth diaspora and expatriates fund:
in Uganda through their regular research
tor’s asset portfolio stood at Shs10trillion as it provides a saving and investment solu-
based report and debate dubbed ‘Enwealth
at the end of 2017, with the National Social tion for the diaspora community both
Conversations’.
Security Fund controlling 90% of the portfo- within and out of the country
Speaking at the same event, the NSSF

March. 01 - 07 2019 25
Executive Style

Commercial bank status is


top on our agenda – EFC MD
What is your description of given where we have come

O
EFC as a business as we speak? EFC Uganda from. The market should
ur business model know that interest rates are
focuses on small and
Limited also driven by the cost of doing
medium enterprises. known as EFC business which is relatively
We acquired our MDI Uganda is a high in Uganda. With agent
license from Bank of Uganda microfinance banking however, we
in 2014, before then we were deposit-taking should begin to see the cost
licensed as a money lending in- institution in of doing business come
stitution under the magistrates’ down. We are pushing the
courts. Our focus is entrepre- Uganda and has central bank to open agent
neurs with verifiable businesses been operating banking space to all players
who wish to grow them. We since 2012. in different tiers. With infla-
therefore do not do consumer The company’s tion targeting, we think the
lending. Our customers range Managing central bank has done a very
from those requiring microfi- good job in containing infla-
nance solutions say small loans
Director Shem
tion below 5%. The economy
all the way to lower tier of Kakembo is projected to grow by
banking. We think ourselves to spoke to The about 6.3% this year and
be a quasi-microfinance player Independent’s these are very healthy
because we do not exactly do Julius Businge growth figures.
the very small loans or what about their
you would call bottom of the What are the top three sec-
pyramid lending. We do not do
business tor challenges that you face
loans below Shs5 million. We as a business and how best
lend up to Shs100 million which should those with authority
was made possible by a capital grew in excess of 120% in 2019 around times in the industry. intervene?
injection of Euros 2 Million largely because of the way we We appraise a business in a few The cost of doing business is
which was made by our share- approach the market and serve hours to make a decision to still high because of expensive
holders in March, 2018. We are our customers. We are growing lend to you. The kind of risk we inputs e.g. power the supply of
currently largely playing in by leaps and bounds because take on our customers, many which is also sometimes unreli-
the Kampala and the greater of our fast service. The number of the banks in Uganda do not. able. The other is the high cost
Kampala metropolitan area. We of players has increased but so We are big on digitization. This of internet and because, a lot
have plans to expand to other have the number of custom- year, our customers will be able of services that we do require
places. ers. One of the reasons that the to apply for loans via an app. internet we feel the pinch.
government proposed was the We understand that our cus-
What have you achieved so introduction of a regulator for tomers are busy and they have How is EFC embracing the
far? microfinance players not super- limited time to move physically popular talk of digital revolu-
In 2014 we received an MDI vised by BOU. to our service points. tion?
license from Bank of Uganda With the digital revolution
which we recorded as a big What is your position on the Profitability of the financial and how we are planning
achievement because it allowed proposed regulator? sector in the past five years to deliver our products and
us to mobilise deposits from the It is a step towards the right has been negatively affected interact with our customers,
public and it continues to give direction. Persons who inter- by the upward trend of non- the requirement of a physical
us an opportunity to grow the mediate other people’s money performing loans. How have branch is shrinking. But given
organisation. In March 2018, we ought to be regulated because you fared? our business model, a presence
raised additional capital in the in Uganda we have experiences The country has been going in an area is still important. We
amount of Shs9billion which of SACCOs and other small through interesting cycles. want to go paperless in 2020.
made us one of the most capi- financial institutions disap- In 2011, interest rates went
talized supervised institution in pearing with people’s money. through the roof because of What should the market expect
the land. We hope that whoever ends up political and other factors. But from EFC in 2019?
regulating this sector is com- in 2016 this situation was better In late 2019, we will be apply-
What is your general assess- petent enough to deliver the managed. We saw interest rates ing for a commercial banking
ment on the uptake and per- service. starting to come down which license to be able to add new
formance of the microfinance means the central bank had products and services to our
sub-sector in Uganda? Why should one consider ac- learnt their lessons and did a current offering. The new prod-
This market grew at about cessing your services in this very good job. Industry NPLs ucts would include forex and
8% in the second last quarter competitive market? are now in the region of 3-5% other trade related services.
of 2019. Our own business We have the fastest turn- of total loans which is not bad

26 March. 01 - 07 2019
Business
CONFERENCE

Top executives to attend 11th ICT4D conference in Kampala

P
rivate sector players will be part 11th session, the conference provides a DAI Global, ICRISAT, International Rescue
of the over 200 speakers from forum for the global digital development Committee, Mercy Corps, NUDIPU, Plan
the Government of Uganda, community comprising of hundreds of International, SOS Children’s Villages,
International and Ugandan NGOs participants to gather and share, learn and UNCDF, and World Vision among other
who will be attending the annual ICT4D innovate on issues regarding the sector. It is sponsors. It will feature over 300 sessions
conference, scheduled for April 30- May 3, organised in partnership with international tackling issues about agriculture, digital
2019 at Speke Resort Munyonyo. Founded and regional partners, including NetHope, financial inclusion, humanitarian response
by Catholic Relief Services and now in its Norwegian Refugee Council, Chemonics, and resilience, education and more.

CSR INSURANCE

Fresh Dairy 2019 Insurance broker MINET trains

I
School Games on nsurance broker under their various

T
Minet Uganda umbrella bodies to
he 2019 Fresh Dairy Sec- Limited in understand the oil
ondary School Games partnership industry as well as
have officially been with AON from the train their personnel
launched and flagged United Kingdom, to appreciate the
off. They started on Feb.13 and conducted an oil and risks that might
will go up to May 11. The Gen-
gas training aimed at manifest in this new
eral Secretary for Uganda Sec-
equipping insurers market,” Maurice
ondary Schools Sports Associa-
with knowledge Amogola, Minet’s
tion Christopher Mugisha said
about oil and gas CEO said. He added
at the launch event on Feb.21
risks. Around 40 that the training
in Kampala that the games,
also commonly known as ‘Ball insurance industry when Uganda is Oil in two years would help local
Games 1’ will attract over 2,500 executives attended commencing the time. “Just like other Ugandan insurers
secondary school students the workshop held stage of development potential support and reinsurers
across the country who will in Kampala, the and construction sectors, insurance prepare themselves
compete in various disciplines.’ company said on of oil production companies in Uganda to ably cover the risks
The disciplines to be competed Feb. 22. The training facilities as the are doing all they can, associated with the
in include basketball, rugby, comes at a time country eyes First both privately and oil and gas sector.
football, hokey, table tennis and
banking
Bad Minton. The Marketing
Manager at Fresh Dairy Vin-
Dfcu’s new loan facility

D
cent Omoth said, they signed a
five year contract with Uganda fcu bank customers money on their account within and affordable way to borrow
Secondary Schools Sports Asso- will, for a limited a day. “The uncertainties of money.” This campaign will be
ciation worth Shs3.8billion for time access personal life will require that customers running until the end of March
this exercise. unsecured loans seek credit facilities in a timely 2019. The same campaign has
of up to Shs150 million at a manner and at a competitive additional benefits including
competitive interest rate of cost,” Musoke said. He added a maximum of Shs800 000
17.5% per annum, it said on that by offering personal salary protection cover for up
Feb.19. According to dfcu unsecured loans of up to to three months (for salaried
bank’s Head for Personal Shs150million at 17.5% interest customers); hospital cash of
Banking, Miranda Bageine rate within a day “we are Shs50, 000 per day for 10 days,
Musoke, customers will be able meeting the needs of today’s funeral expenses of Shs2million
to apply in minutes and have customers who want a safe, fast and more.

FINANCE

ICPA-U president urges on audit fees

T
he President of the Institute by the Institute at Imperial Royale ing business must have a thriving
of Certified Public Accoun- Hotel in Kampala on Feb.21. Nkajja finance team,” he told the audience
tants of Uganda (ICPA-U) said that some CFOs and their top of around 200 participants. He also
Derick Nkajja (Pictured) managers were poor at negotiating said that the institute supports all
(CPA) has urged Chief Finance fees, which he said, might com- efforts geared towards growing the
Officers to be clear while negotiat- promise the quality of audits and number of accountants and improv-
ing audit fees with their clients in negatively affect the profession in ing their skills to better serve busi-
order not to kill the profession. He general. He added that good audits nesses. Uganda currently has a total
was speaking at the Chief Finance support growth of businesses and of about 3,516 qualified accountants
Officers (CFOs) forum organised the economy in particular. “A thriv- and slightly above 2000 are active.

March. 01 - 07 2019 27
Business

Coffee exports earnings falls


Uganda Electricity million bags.
Generation Company By Patricia Akankwatsa Last year, Uganda’s coffee

U
Limited CEO Eng. export volumes grew 7%
Harrison Mutikanga and ganda’s coffee to 4.5million 60-kilo bags
Speaker of Parliament exports dropped worth US$492million for
Rebecca Kadaga flags for the three the 2017/18 season (Oct-
off construction of months to Sep) compared with the
classroom blocks at December 2018 citing low previous year – due to
Nakandulo Primary commodity prices on the increased yield from the
School, Kamuli District international market on newly planted crops as well
on Feb. 21. The the account of high crop as good flowering and beans
classroom construction production in Brazil. development.
is under the community Latest data from This is the second
development action plan the Uganda Coffee consecutive year that the
(CDAP) a head of Isimba Development Authority country recorded the highest
Dam launch on the shows the country’s coffee coffee export volumes since
downstream of River exports from October to 1996 when it recorded
Nile.   Courtesy Photo. December 2018 totaled to 4.15million bags. In 17/18
1.06million bags worth season, the country exported
$109.59million compared 4.2 million bags worth
to 1.21million 60-kg worth US$490million.
$135.81million recorded Uganda exports most
in the previous year. This of its coffees Germany,
represents an 11.19% and Switzerland, India, and USA.
19.30% drop in quantity and UCDA has since 2012
value, respectively. distributed more than
Overall coffee production 317,000 coffee seedlings
in Brazil was up 16% year to farmers across the 98
on year in 2018/19, with the districts that grow the crop,
total global ending stocks though low productivity,
set to increase 12% pushing unpredictable weather
prices southwards. conditions, inadequate
Global coffee production agricultural extension
is expected to be 167.47 officers, and limited use
million 2018/19 exceeding of fertilizers remains a big
world consumption at 165.15 hindrance to productivity.
Trade Minister Amelia Kyambadde addressing members of the
8th National Standards Council (NSC) in Kampala recently. She
appointed 10 members of the 8th NSC for three years. NSC is
a supreme governing body of the Uganda National Bureau of
Standards responsible for providing oversight and policy guidance to
management to ensure effective service delivery.   Courtesy Photo.

Weekly share price movement (Feb. 15)


Security Feb. 15 Feb.08 Movement
BATU 30,000 30000 00
BOBU 134 134 00
CENT 1,242 1,298 4.3
QCL 200 200 00
DFCU 690 690 00
EABL 8,154 7,838 4.0
EBL 1,568 1,575 0.4
JHL 16,090 15,622 2.9
KA 328 327 0.3
KCB 1,607 1,589 1.1
NIC 14 14 00
NMG 2,526 2,280 10.7
NVL 336 337 0.3
Allen Ayebare (2nd R), Chief Manager Corporate Affairs and SBU 28 29 3.4
Communication at Centenary Bank with a bank official handing over UCHM 27 29 3.4
a dummy cheque worth Shs 1 million to some of the clients who took UCL 18 18 00
part in the Valentines with Cente Visa campaign. The event was held at UMEME 300 300 00
the bank’s head office on Feb. 14.   Courtesy Photo. ALSI -- -- --

28 March. 01 - 07 2019
The inactive form of HIV that rests hidden in people’s cells can now be accurately measured.

HIV hiding in cells


It can now be measured. But are we closer to a cure?

T
By Agencies pies may be less of a shot in the dark. researchers would see just how much
This new work comes out of the the presence of the virus dropped, and
he road to a cure for HIV Maryland lab of Howard Hughes whether or not the drugs themselves
is long, winding, and with Medical Institute investigator Dr. Rob- produced this decrease.
no definite end in sight. ert F. Siliciano, PhD, a leader in the “It really accelerates the develop-
That said, a new study HIV cure world. He said that while ment of antiretroviral therapy if you
published in January in current drugs out there are doing a have a simple assay (a lab test used to
the journal Nature is shed- good job of attacking and suppressing analyze the effectiveness of a drug, for
ding light on a way to measure what the virus, none of them are able to get instance) that measures the key quan-
is considered an inactive form of the rid of this persistent latent form. tity that indicates how much virus is
virus that rests hidden in people’s Over the years, Siliciano and his col- there,” he added. “It should be very
cells. leagues have attempted various meth- helpful.”
This so-called “latent reservoir” of ods to try to get around this problem,
HIV has stood as a roadblock to eradi- essentially “waking up” the latent How HIV attacks cells
cating the virus, stubbornly staying virus and killing the bad actor cells. For those unfamiliar with how HIV
put despite being attacked by increas- He said, while there are a lot of attacks a body’s cells, the idea of a
ingly sophisticated antiretroviral clinical trials underway to do this, you hidden stash of the virus evading the
drugs used to treat the virus. won’t know whether or not they’re attacks of drugs can sound hard to
For researchers in the HIV cure working unless you can clearly mea- grasp.
field, this new technique is a signifi- sure this drug-resistant reservoir. Basically, HIV treatments consist
cant development because it offers a “Measuring the latent form is going of a combination of drugs that hit the
clearer look at how to pinpoint this to tell us whether we are closer to a virus at a specific stage of its lifecycle.
viral reserve. cure or not,” Siliciano, professor of If drugs cut the virus off at two or
medicine at the Johns Hopkins Univer- more of these stages, the virus can’t
Why is this important? sity School of Medicine, told Health- make copies of itself. It then cannot be
Past tools are said to have greatly line. “You can’t know whether you are detected in a person’s bloodstream.
overestimated how much of this making progress unless you can mea- In 2017, the Centers for Disease
under-the-radar cache of virus existed sure before and after an intervention Control and Prevention (CDC)
in any given cell. and say ‘Aha, this went down.’ “ announced that people with HIV who
Now, measuring the reservoir to see Siliciano said that in clinical tri- strictly stick to their antiretroviral
how it responds to experimental thera- als of new antiretroviral treatments, therapies, can reach this “undetect-

March. 01 - 07 2019 29
health
able” viral count. how fast the virus didn’t come back. allow researchers to eventually be able
This means they’re unable to trans- Over those two decades, we fought to identify them mixed in with a popu-
mit the virus to their sexual partners. with each other what is the best way lation of the defective cells.
While current treatments mean people to measure this. Everything fell short, “Right now, our lab is using a lot
with HIV can lead healthy, long lives, in my opinion.” of approaches to drill deep down to
this isn’t a cure. O’Doherty said sequencing the mass see how these latently infected cells
The latent reservoir remains stowed of proviruses in an infected person is look different from their neighbors,
away in the genes of CD4 cells, which heavily labour intensive. She said the to identify biomarkers and molecular
are what HIV infects. field has to “get much better at pro- mechanisms in cells allow the virus to
People who hit “undetectable” sta- cessing big data” if it can effectively be in this latent pharmacological state
tus must remain on their antiretroviral do this. in infected cells,” Pillai explained.
drugs because, even when infected Satish K. Pillai, PhD, associate
CD4 cells go dormant, they hold on professor of laboratory medicine at The need for a cure
to their genetic record of the virus. University of California, San Francisco Siliciano said we can’t really say
You might say they’re in hibernation. (UCSF), told Healthline that better that we can see a “light at the end of
If a person goes off their treatment, understanding and quantifying the the tunnel” when it comes to an actual
the infected cells wake up and the latent reservoir is the “heart and soul HIV cure. But, this research gives
stored HIV information generates new of where the HIV cure field is going.” scientists a step in the right direction
viruses. He said his own lab right now is in better measuring HIV levels in the
working on quantifying the size of the human body.
Attempts to measure the reservoir and trying to “biologically The need for a cure is certainly
reservoir characterise the latent cells” and how there. Since the start of the HIV/AIDS
epidemic, more than 70 million people
In 1995, it was Siliciano’s lab that have been infected with HIV and
first officially showed the existence of about 35 million have died from it.
the reservoir itself. That research was
published in Nature, too. Now, with Right now, countries in sub-Saharan
Africa are most impacted. The World
Since then, efforts to effectively
measure the reservoir have most- therapies leaving Health Organization reports that, in
the region, one out of every 25 adults
ly been trial and error. Dr. Una
O’Doherty, PhD, associate professor of many with such live with HIV.
In the U.S., about 1,122,900 adults
pathology and laboratory medicine at
the Hospital of the University of Penn-
low amounts of and adolescents were reported to have
the virus by the end of 2015, according
sylvania at the Perelman School of
Medicine, told Healthline that before
the virus that it’s to the Centers for Disease Control and
Prevention.
the advent of antiretroviral therapy, it
was fairly easy to measure a person’s
undetectable, it’s “The new study and this method is
an incredibly elegant and intuitively
HIV viral load and CD4 count.
Now, with therapies leaving many
hard to come up interesting and promising approach,”
Pillai said of Siliciano’s research.
with such low amounts of the virus
that it’s undetectable, it’s hard to come
with an accurate “At end of day, we need to see if this
approach can actually tell us anything
up with an accurate measure.
She explained that the majority of
measure — can this approach predict some-
thing in the clinic that we care about?”
HIV in the human genome — or pro- He further explained, “What we
viruses — becomes damaged, most care about is what happens when the
likely due to the virus’s inaccurate antiretroviral treatment stops. Can we
replication cycle. use this approach to characterise the
Given that so much of this damaged genetics of HIV in a clinical sample,
HIV DNA is in the bloodstream of they look different from unaffected and make reasonably accurate predic-
infected people, it’s difficult to some- cells and “productively infected cells.” tions about how long it’s going to take
times parse the defective HIV from the “This is another challenge in the for the virus to come back?”
latent reservoir of HIV genomes that field, knowing more about how latent- O’Doherty said it will be interesting
have the potential to make new, active ly infected cells look. If you know how to see what happens once Siliciano’s
viruses. they look, you have a better chance method starts being applied widely in
Research out of Siliciano’s lab by Dr. to actually destroy them,” Pillai said. HIV research labs.
Ya–Chi Ho, PhD, assistant professor of “We have a limited understanding “I want to reinforce something — I
microbial pathogenesis and medicine of how latently infected cells behave don’t think the study makes ‘a cure’
at Yale School of Medicine, revealed 93 in vivo (in an actual person). We more possible,” she stressed. “I think
percent of all proviruses are damaged don’t have much information on how it makes it more possible to reevaluate
and defective, which offers up a con- they are different from productively trials. But I think that’s huge. We were
fusing smokescreen of sorts for scien- infected cells in actual infected human caught being in the darkness and now
tists in trying to find this reservoir. beings. The reason being is that the we will have a better understanding.”
“It feels very much like looking into cells hang out for so long with the
the darkness,” O’Doherty said. “When virus sitting in them, so that they are Source: healthline
you are testing clinical trials, did these immunologically invisible.”
measures of HIV DNA increase or He said that increasingly more
decrease? Some people would take research suggests that “signature char-
patients off therapy to try to measure acteristics” of cells with HIV should

30 March. 01 - 07 2019
comment
By Dani Rodrik
The good jobs challenge
Every economy today has patterns of inequality, exclusion,
and polarisation due to labour force segmentation

A
round the world today, the central very difficult for poorer countries to com- room for factor substitution: using less-
challenge for achieving inclusive pete in world markets without adopting skilled labor instead of skilled professionals
economic prosperity is the creation skill- and capital-intensive techniques sim- or physical capital. The demanding quality
of sufficient numbers of “good ilar to those of the advanced economies. standards needed to supply global value
jobs.” Without productive and depend- The result is the intensification of chains cannot be easily met by replacing
able employment for the vast majority of economic dualism. Every economy in machines with manual labor. This is why
a country’s workforce, economic growth the world today is divided between an globally integrated production in even the
either remains elusive or its benefits end up advanced segment, typically globally inte- most labor-abundant countries, such as
concentrated among a tiny minority. The grated, employing a minority of the labour India or Ethiopia, relies on relatively capital-
scarcity of good jobs also undermines trust force, and a low-productivity segment that intensive methods.
in political elites, adding fuel to the au- absorbs the bulk of the workforce, often This leaves a broad range of developing
thoritarian, nativist backlash affecting many at low wages and under poor conditions. economies – from middle-income coun-
countries today. The shares of the two segments may differ: tries such as Mexico and South Africa to
The definition of a good job obviously developed countries obviously have a low-income countries such as Ethiopia – in
depends on a country’s level of economic greater preponderance of highly produc- a conundrum. The standard remedy of
development. It is typically a stable formal- tive firms. But, qualitatively, the picture improving educational institutions does not
sector position that comes with core labour looks quite similar in rich and poor coun- yield near-term benefits, while the econ-
protections such as safe working conditions, tries – and produces the same patterns of omy’s most advanced sectors are unable
collective bargaining rights, and regulations inequality, exclusion, and political polariza- to absorb the excess supply of low-skilled
against arbitrary dismissal. It enables at tion. workers.
least a middle-class lifestyle, by that coun- Logically, there are only three ways to Solving this problem may require a third
try’s standards, with enough income for reduce the mismatch between the struc- strategy, which is perhaps the one that gets
housing, food, transportation, education, ture of productive sectors and that of the the least attention: boosting an interme-
and other family expenses, as well as some workforce. The first strategy, and the one diate range of labor-intensive, low-skilled
saving. that receives the bulk of policy attention, economic activities. Tourism and non-tra-
There is much that individual enterprises is investment in skills and training. If most ditional agriculture are the prime examples
all over the world can do to improve workers acquire the skills and capabili- of such labor-absorbing sectors. Public
employment conditions. Large firms that ties required by advanced technologies, employment (in construction and service
treat their employees better – by providing dualism would eventually dissipate as high- delivery), long scorned by development
them with higher pay, more autonomy, and productivity sectors expand at the expense experts, is another area that may require
greater responsibility – often reap benefits of the rest. attention. But government efforts can go
in the form of lower turnover, better worker Such human capital policies are of course much further.
morale, and higher productivity. As MIT’s important, but even when they are suc- Such intermediate activities, chiefly non-
Zeynep Ton has long argued, “good jobs” cessful, their effects will be felt in the future. tradable services carried out by small and
strategies can be as profitable to firms as They do little to address labor-market reali- medium-size enterprises, will not be among
they are to workers. ties at present. It is simply not possible to the most productive, which is why they are
But the deeper problem is a structural one transform the labor force overnight. Besides, rarely the focus of industrial or innovation
that goes beyond what firms can do on their there is always the real risk that technology policies. But they may still provide signifi-
own. Developed and developing countries will advance faster than society’s ability to cantly better jobs than the alternatives in the
alike are suffering today from a growing educate its labor-force entrants. informal sector.
mismatch between the structure of produc- A second strategy is to convince successful Government policy in developed and
tion and the structure of the labor force. firms to employ more unskilled workers. In developing countries alike is too often pre-
Production is becoming increasingly skill- countries where the skill gaps are not enor- occupied with boosting the most advanced
intensive while the bulk of the labour force mous, governments can (and should) nudge technologies and promoting the most pro-
remains low-skilled. This generates a gap their successful firms to increase employ- ductive firms. But failure to generate good,
between the types of jobs that are created ment – either directly or through their middle-class jobs has very high social and
and the types of workers the country has. local suppliers. Governments in developed political costs. Reducing those costs requires
Technology and globalisation have con- countries also have a role to play in affecting a different focus, geared specifically toward
spired to widen that gap, with manufac- the nature of technological innovation. the kind of jobs that are aligned with an
turing and services becoming increasingly Too often, they subsidize labor-replacing, economy’s prevailing skill composition.
automated and digitised. While new tech- capital-intensive technologies, rather than
nologies could have benefited low-skilled pushing innovation in socially more ben- Dani Rodrik, Professor of International
workers in principle, in practice techno- eficial directions, to augment rather than Political Economy at Harvard University’s
logical progress has been largely labour- replace less skilled workers. John F. Kennedy School of Government, is
replacing. In addition, global trade and Such policies are unlikely to make much the author of Straight Talk on Trade: Ideas
investment flows, and global value chains difference to developing countries. For for a Sane World Economy.
in particular, have homogenised production them, the main obstacle will remain that
techniques around the world, making it existing technologies allow insufficient Copyright: Project Syndicate, 2019.

March. 01 - 07 2019 31
comment
By Alan M. Collins
Understanding economic stagnation
A comparative look at Museveni’s economic performance
against other long-serving leaders in the region

T
he word “stagnation” often the developing nations implement applied here.
follows the word “economic”, reforms that see modest growth, the Only three African presidents have
followed by period, decline, developed nations continue their been in power longer than Museveni.
and unemployment according exponential climb and continue They are Teodoro Obiang of Equatorial
the British National Corpus. The word to widen the socio-economic gap Guinea (1979-present), Cameroon’s
stagnant is often used in reference between rich and poor. Paul Biya (1982-present) and Congo’s
to the Ugandan economy. However, Now it is time to look at the next (Brazzaville) President Denis Sassou
it isn’t a completely fair term, to be factor for economic stagnation, which Nguesso (1979-1992, 1997-present).
honest. Since Uganda negotiated is GDP growth. This is where things What is interesting about Africa’s
a policy framework with the IMF start to become either a little murkier longest serving president, Obiang, is
and the World Bank in 1987, it has or a little clearer, depending on which that he has fulfilled his social contract
experienced steady, if slow, economic side you happen to be looking at it by taking a GDP that was lower than
growth. In fact, there are only a from. Uganda’s in 1979, and growing it 50
handful of African countries that Uganda’s GDP per capita when times larger over the course of his
have managed to exceed Uganda’s President Yoweri Museveni’s NRM presidency. This is largely due to
slow climb over the period: Angola, took over in 1986 was US$258, exploitation of the world’s continued
Botswana, Equatorial Guinea, which at the time was higher than reliance on fossil fuels. Jose Eduardo
Mozambique, and nearby Sudan. So neighbouring Tanzania, as well dos Santos did the same to a lesser
why the need for the term stagnation, as Equatorial Guinea and Eritrea, extent in Angola to legitimize his
when the economy seems to be doing among others, with these being the 38-year reign that only recently ended
so well? most relevant for comparison. That is a little over a year ago.
A deeper look reveals that economic because But the next three presidents in the
stagnation is defined as, “a prolonged Museveni has been in power for list, rounded out by Museveni, have
period of slow economic growth 33 years. And, if someone maintains not so unquestioningly fulfilled their
(traditionally measured in terms of the power for a long period of time, it social contracts. Cameroon, Congo,
GDP growth), usually accompanied
by high unemployment” (emphasis Country Name Code Year Presidency Initial GDP per Current GDP Growth
added). assumed length capita (USD) per capita multiplier
Before we look at the figures, it must power (USD)
be mentioned that economic growth is Equatorial GNQ 1979 39 years 198 9850 49.7
a relative term; especially considering Guinea
the unique impact colonialism and Gabon GAB 1967 41 years 520 7603 14.6
imperialism have had on Uganda and Angola AGO 1979 38 years 664 4170 6.3
other parts of the world.
This world is economically Swaziland SWZ 1986 32 years 611 3224 5.3
unbalanced and the term economic Sudan SDN 1989 29 years 605 2898 4.8
growth is relative too. So, Uganda’s
Eritrea ERI 1993 25 years 151 582 3.9
meager 5% growth rate over
each 5-year period of Museveni’s Congo, Rep. COG 1979 34 years 670 1658 2.5
presidency could be seen as
Chad TCD 1990 29 years 291 669 2.3
admirable, until it is realised that at
that rate of growth, it would take an Uganda UGA 1986 33 years 258 604 2.3
eternity to get on equal terms and Cameroon CMR 1982 37 years 799 1446 1.8
compete with the imperial powers. It’s
a mathematical impossibility.
A 5% economic growth rate is simply could actually be assumed by Western and Chad all have long-serving
insufficient to close the widening gap philosophy like Hobbes, Locke and presidents in charge of nations that
between the so-called developing Rosseau that he is fulfilling his social have seen marginal growth.These
and developed nations. There are contract, or would otherwise be presidents have only managed to
indications that the economic reforms deposed. But that is not the case for double their countries’ GDPs over the
dictated by the IMF and World Bank Museveni. And this is an objective course of roughly 25-35 years.
that have aided Uganda’s growth over look at Uganda and the occasional Again, resisting the temptation to
the past three decades have largely western argument on the impact compare with western nations, it is
failed to see any developing nation of democracy versus dictatorship worth mentioning the first example
transition into a developed one. While on economic growth should not be of Africa’s longest-serving president

32 March. 01 - 07 2019
comment
having grown his country’s GDP 50 By Derrick Majanga
times larger, not merely doubled.
The difference between the three
aforementioned nations and Uganda is Museveni not to blame
for all your problems
that the former all began their journey
from where Uganda is currently at,
albeit 30 or so years prior. This places
Museveni almost at the very end of
all long-serving African presidents, Although it is tempting to blame him

A
save for Eritrea. In the case of Eritrea,
although, it lags behind Uganda in s it stands, there is a section of researched idea? Do you have a plan
GDP per capita terms, it will soon pass people who are praying that written down on how you want to get to
it as well. That is because along with government changes. Their claim where you want to get?
Sudan and eSwatini, where Museveni’s is that if government changes, As you blame the police officers for
seen his GDP double, the former everything will get back to a wholesome being violent, are you willing to join the
nations have seen it multiplied by five, state. I am quite certain that one day, soon army and police and make a better and
with Eritrea’s having quadrupled in the or later, President Yoweri Museveni will more disciplined force? Do you ever thank
same time period. not be President of Uganda. the few good officers you meet standing
Finally, in the name of fairness, Whether that happens now, tomorrow under the brutal sun to manage traffic?
Museveni deserves regional or 20 years from today, it remains a This would encourage and make them
comparison. This is because widely constant and it will surely happen. That feel loved and motivated.
varying socio-economic factors means his departure is not a question of if, Assuming this government never
contribute to GDP growth in the vast but when. However, it is my prayer that changes, what is your plan B? It is very
landscape that is Africa. And since when that time you yearn for surfaces, tempting to always find an external cause
Sudan’s growth 25 years ago from you are the best doctor, engineer or what- of our problems but harder to look within
where Uganda is now was already ever and that if the system starts working and see what our own weakness could be.
mentioned and GDP data for South as you wish it to, you will be the person Some of you ask government to care
Sudan is not available for the length that society will offer the job or contract. about you; which it does anyway, but do
of Museveni’s presidency, we will While some of you may fully attribute you care about your own family? When
avoid this particular comparison. We all your problems to President Museveni’s was the last time you called your sister or
will only remind ourselves that the regime, you have to also do some self- brother to check on them, except when
Sudanese GDP has grown 5 times over inspection and find out if we are fit to soar communicating important/official or
the last 25 years. high in the event that the opportunities we unavoidable information? When was the
With much more similar GDP starting believe will exist are made available. last time you volunteered?
points in 1986 and similar growth in Let us assume government changed In developed countries, young people
Rwanda and DR Congo, Museveni tomorrow; are you sure you would be are doers because they read, research, and
seems less at odds with East African the best candidate at an interview? How are thirsty for knowledge. When was the
expectations for economic growth prepared are you? Do you have the best last time you bought a newspaper of as
in terms of GDP. However, when papers and skills? Are you learning from low as Shs2000 and read it? When was the
compared with Kenya and Tanzania’s other people? What is the one thing you last time you read a book out of search
quadrupled GDPs, we can see that do or can do that no one else can do as for knowledge and not because you were
Museveni’s NRM government has best as you do? Do you have any skill for meant to sit an exam? If you are not inter-
only outperformed DR Congo with which people look for you because it’s ested in reading then one of the qualities
you who does it best? I propose that as a that make for success in life elude you.
its never-ending wars that do not
young person you should start sharpening Our counterparts in developed countries
plague Uganda in the same way.
your skills, attitude and knowledge to be have to part with rent in order to stay with
Second-to-last in the region ahead of
the best there is in your field. Use this time their parents. They are forced to work
DR Congo and second-to-last ahead of
to learn, accumulate knowledge, read, and because nothing comes free while for us
Cameroon in the list of longest-serving
research, volunteer, make good contacts, we want to carry iPhones when we hardly
presidencies, Museveni is objectively and learn humility. have a job and dress like we are million-
and undoubtedly keeping Uganda As you ask government to be cautious aires. We want to have a 200 million wed-
in economic stagnation, in complete with resources, have you thought about ding yet we have no plot of land where we
agreement with the definition given at how you are saving at a personal level? can build a small house for the children
the beginning. Do you have any savings? This does not that we shall have.
require you to have a big income. You can I hope and pray that you reflect on the
even save 10% of all you get and still have fact that the day you are praying for will
Country Code 1986 GDP 2018 GDP Growth
pocket change to keep you going. come but unless you prepare for it, it will
Name per capita per capita multiplier Also as you ask government to be make you even more frustrated as others
(USD) (USD) honest, are you honest with yourself? move up while you remain where you are.
Sudan SDN 605 2898 4.8 Can you return money if someone gave Food for thought for me and you is that
Tanzania TZA 219 936 4.3
you extra change? Can you do the right there are two people in this country; those
thing if you had an opportunity to do a who are buying and those selling. Do you
Kenya KEN 355 1507 4.2
wrong thing without anyone knowing or have anything to sell? As you reflect on
Rwanda RWA 303 748 2.5 catching you? It is possible that you may these very many bitter rhetorical ques-
Uganda UGA 258 604 2.3 sink to where the current leaders are. tions, take care, keep safe and upgrade
Congo, ZAR 263 457 1.7
Do you have a business plan? Assuming yourself because the unedited truth is that
Dem. some business mogul asked you to table you must work hard and smart if you
Rep. your business idea with accurate fig- wish to make it to the finish line whether
ures, would you relay a good and well under this regime or any other.

March. 01 - 07 2019 33
comment
By Prue Clarke
Foreign aid fuels media’s pay problem
Development agencies fork out vast sums to sway
African journalists to ensure coverage will be positive

A
t a recent press conference, a small nalists go from workshop to workshop, the station has been widely credited with
group of Liberian journalists made turning up long enough to collect their per helping lift the standard of journalism in
a courageous admission: they diems and write a puff piece. the country. In the past, Nigerian journalist
confessed they were all “on the This approach is as costly as it is regret- Dele Olojede lured top graduates in busi-
take.” To supplement salaries as low as $40 table. In one African country, a media- ness, medicine, and law to the profession
a month, the journalists said they often rely development organisation with which I with higher wages and an inspiring mis-
on payments from the very people they have worked spent more than $1 million sion. In 2011, journalists whom he men-
write about. of taxpayer money to produce a one-hour tored founded Premium Times, which has
The revelation confirmed a dirty secret program on governance, which was then earned a reputation as an impartial political
of African journalism: reporters earn most aired on community radio, its content so watchdog. Liberia’s Front Page Africa has
of their income from payments by their sanitised to appease local officials that few played a similar role, as has the Daily Mav-
sources. And the dirtiest secret of all is that people tuned in. But even more problematic erick in South Africa.
the international aid community is among was the distortion to the domestic media To make further progress, African news
the most prolific payers. market. To produce the program, the NGO outlets should emulate their counterparts in
Development agencies fork out vast sums recruited ten top journalists from estab- advanced economies by developing sustain-
to sway African journalists. While outright lished outlets and paid them as much as ten able revenue streams though e-commerce,
bribery is rare, insidious payment is ram- times their normal salary. Once the project subscriptions, sponsored content, supple-
pant. Many schemes – from “transport” was over, most of the journalists quit their ments, and multimedia. This is where
refunds that far exceed reporters’ travel old jobs in search of better pay in the aid donors can be helpful: rather than host use-
costs to exorbitant per diems – come with and government sectors. less trainings, they should enable innova-
a tacit understanding that coverage will be From my experience, most African jour- tion by pairing African media outlets with
positive. Aid groups insist that payments nalists know how to report a well-sourced experts in business, technology, and adver-
are not inducements; in reality, poorly story. What they lack are the resources to tising. In particular, tech companies should
remunerated journalists cannot easily tell put this knowledge to use. The deficiencies help media organisations take advantage of
the difference. of African media are best addressed as a platform innovations and find opportunities
For media bosses, bribery rationalises business challenge, not a training problem. to monetise diaspora audiences.
costs: as long as they publish, sources Some media organisations already Donors have already shown that they
will foot the bill. Although it is difficult to recognise this. In Ghana, Joy FM owner can pursue development priorities while
know for certain what percentage of media Kwasi Twum told me that he pays his staff also making smart investments in media.
budgets derive from unethical payments, “enough for a car and a mortgage,” and The Bill & Melinda Gates Foundation, for
in Liberia, where I do most of my work, example, funds health-related reporting
anecdotal evidence suggests it is a majority at South Africa’s Mail & Guardian and at
of reporters’ pay. For example, two leading Premium Times. Aid has also been key to
media companies told me that they have
not paid their staff for at least a year, yet
Donors have sustaining the organisation I lead, New
Narratives, which uses funding from gov-
they continue to publish with no noticeable already shown ernments and foundations to support inde-
change in output. pendent local media. Reporting we sup-
The implications of this journalistic busi- that they ported helped bring about a ban on female
ness model are profound. For starters,
stories are typically poorly written, based can pursue genital mutilation and uncovered numerous
cases of corruption and mismanagement.
on a single source, and inspired by a press
conference or press release, rather than a
development As these and other efforts demonstrate,
supporting independent media is among
thorough and objective assessment of issues priorities the most important investments donors can
affecting readers. Journalism as a career is
also debased, and most top university grad- while also make in Africa’s future. But support should
never come with strings attached. To build
uates avoid the profession entirely.
Ironically, aid agencies’ efforts to improve
making smart strong communities, Africans need news
they can trust. To deliver it, journalists need
African media have only exacerbated the investments in to come by their funding honestly.
problem. That’s because today, a typical
journalist in Africa is a professional work- media Prue Clarke is Executive Director and Co-
shop attendee. NGOs from every sector Founder of New Narratives, a non-profit
“train” journalists in their subject matter, organization supporting independent journalism
often with content conceived in Western in Africa.
capitals by people with no experience in
journalism or in the target countries. Jour- Copyright: Project Syndicate, 2019.

34 March. 01 - 07 2019
ART | BOOKS | SOCIETY | TRAVEL | CULTURE

Circle Art Auction opens


Market place for exceptional art from the region to the world

T
By Dominic Muwanguzi also rare and exceptional
works from artists like
he much Fabian Mpagi and Samuel
anticipated Wanjau. Waswad this time
auction for the has hardwood sculptures
East Africa art of elephants that evoke the
scene dubbed narrative of environment
`Circle Art sustainability through
Auction’ is here. This year conservation.
is the 6th edition and it has Jak Katarikawe’s
more bidding lots; 59, and “Untitled” (undated)
new entrants from seven painting is a cheeky
countries. The expansion composition of a rural scene
indicates growing interest in where nubile women are
Modern and Contemporary entertaining an audience
East African art from of male figures who are
both the continent and sipping on a local brew.
international. The party mood in the
The Auction seeks countryside and the men
to propel the industry gawking or whispering
by fostering positive mischievously at the sight
competition among artists of sharp-piercing breasts
and exposing them to bouncing off the chests of
the international market. the dancers is conveyed
For Ugandan artists like with subtle imagery.
Geoffrey Xenson who have In contrast, Mukasa’s
consistently participated painting of `The artist’s
and sold their art at the Home’ (1993) is a study of
auction, it is a scene of the lush vegetation with
endless opportunity. Art wild trees and thick canopy
buyers looking for art that almost shielding the small
is fresh and affordable are house sitting idly in the
expected from all over the background. The painting
world. is dreamy, with romantic
It is opportunity allusions. `Under Palm
for young or “not too Leaf’ (2003-5) is a still life
experienced artists” to execution of regular and
find new markets. Artists irregular objects done in
like Wasswa Donald aka amateurish fashion, possibly
Waswad (UG) and Wilson Self Portrait, Ian Mwesiga 2017,courtesy of Circle Art Auction Archive 2018 the artist way of suggesting
Mwangi (KE) share the same simplicity is the ultimate
space with masters like artworks. Ian Mwesiga Last year, they sold almost sophistication.
Jak Katarikawe, Geoffrey participated as a young US$2 million. This time, The annual Circle Art
Mukasa and George Lilanga artist in 2018 and his art Jak Katarikawe- recently Auction also known as the
of the Tingatinga fame. has since emerged at the deceased and featuring a Modern and Contemporary art
It is a rare that the little frontline of major auctions single entry titled “Untitled” auction is organised by Circle
known artists will sell but like the PIASA Auction in is in the mix. He is at Art Agency. This year the
their participation signals Paris. Lot 38 against seasoned auction takes place on March
their potential. They will In the past, artists like coveted artist –also 5 at the Radisson Blu Hotel in
be accomplished artists Geoffrey Mukasa, Xenson, deceased- Geoffrey Mukasa Upper Hill, Nairobi.
tomorrow. Peterson Kamwathi and the whose two entries into the
Some are already Tingatinga masters have competition are at Lot 6 and
showcasing impressive dominated the auction. 7 respectively. There are

March. 01 - 07 2019 35
China unveils world’s first AI news anchor
China’s state-run news generated model powered by as news anchor in March. In
agency, Xinhua, has unveiled advanced AI technology. her introduction video, the
its newest news anchor, The perfectly coiffed Xin perfectly coiffed AI news
Xin Xiaomeng. Why is this Xiaomeng introduced herself anchor spoke only in Chinese,
newsworthy? Well, because to Xinhua’s viewers in a short and it’s unclear if she’ll be
Xin isn’t a real person, but clip, announcing that she will able to tackle English news
an ultra-realistic computer make her professional debut reports as well

Iconic WW2 photo kisser dies aged 95


The US sailor who of the war, in 2014 Time
was photographed kiss- Magazine said many today
ing a woman in Times view it as “little more than
Square while celebrat- the documentation of a
ing the end of World very public sexual assault”.
War Two has died. The In a 2005 interview with
black and white image the Veteran History Project
of George Mendonsa confirmed that it wasn’t
Has Cristiano Ronaldo and Greta Friedman, her choice to be kissed.
best known as “The She told the Library of
had plastic surgery? Kiss”, is one of the most Congress: “The guy just
Stories have popped up famous photographs came over and kissed or
throughout CR7’s career sur- of the 20th century. grabbed. I felt that he was
rounding his self-admiration The photograph of him very strong. He was just
time and time again. One such kissing Ms Friedman holding me tight.” She
story was shared by ex-England was captured on VJ added: “It was just some-
striker Peter Crouch after Rio Day on 14 August 1945 body really celebrating.
Ferdinand told him about by Alfred Eisenstaedt But it wasn’t a romantic
Ronaldo’s vanity whilst at Man- and was first pub- the United States. Mendonsa event.” The photo of the
chester United. “Rio Ferdinand lished in Life magazine. People gripped and kissed Friedman kiss is often seen on posters and
would tell us stories about how had spilled onto the streets of despite having never met her is popularly recreated by tour-
Cristiano Ronaldo would stand New York City to celebrate before. Although revered as a ists in New York. Ms Friedman
in front of the mirror naked, run- after Japan surrendered to representation of joy at the end died in 2016 at the age of 92.
ning his hand through his hair,
and say, ‘Wow. I’m so beauti-
ful!’”
“The other United players
Fake plane challenge Kaluuya to star as Black Panther
would try to wind him up, (say- takes off Party’s Fred Hampton
ing) ‘Whatever. Leo Messi is a
better player than you’. And he Over in China, the hashtag ‘pretend- Ryan Coogler is to pro- blockbuster hit Marvel’s
would shrug his shoulders and ing to be on a plane’ has received more duce a movie based on Black Panther – not based
smile again. ‘Ah yes. But Messi than 20 million views on social media the life and death of the on the now-dissolved
does not look like this...’” site Weibo and videos appearing all over Black Panther Party’s Fed political party – which
So, would football’s biggest TikTok. The challenge is simple: Use Hampton. Get Out co- also starred Kaluuya. Fred
superstar splash cash on plastic whatever household possessions you can stars Daniel Kaluuya and Hampton, a revolutionary,
surgery to make himself feel grab to pretend you’re on a plane. The Lakeith Stanfield are in died aged 21 on 4 Decem-
even better when he looks at trick is to get crafty and fake the classic talks to join the film, with ber 1969 at the tail end of
his reflection? Experts certainly plane window photo or video. You know Kaluuya set to play Hamp- the civil rights movement
think so. Cosmetic surgeon Alex the one: a shot of the clouds or the city ton and Stanfield slated in the USA, when he was
Karidis says he possibly has had below through the curve of a plane win- to play William O’Neal, shot in the head during
Botox around the eyes and fore- dow, to show everyone that you’re a cool the undercover FBI infor- a raid con-
head, and his skin is now almost travelling type. The brilliant part of this mant who infiltrated the ducted by
immaculate. He could have had challenge is the big reveal, where people BPP and who is said to be Chicago
his nose done. Ronaldo was pan out to show how they’ve faked their instrumental in assisting Police and
once pictured with signs of a journey. Some of the excellent attempts with Hampton’s assassina- the FBI.
receding hairline, a normal thing we’ve seen use mug handles (the curve is tion. The film titled `Jesus
for many men as they age, but it perfect to replicate a plane window), toilet Was My Homeboy’, will
had seemingly vanished upon seats, and detergent bottles held in front of look at the rise and death
his next public appearance. iPhone screens. The key is to get creative. of the African-American
activist. Coogler directed

36 March. 01 - 07 2019
drivers and new technologies
should improve grip, reduce
wear and improve safety, the
Autocar article concluded.
Elsewhere, it has been noted
that vehicle tyres are getting
attention in part because they
have to play catch-up to the
new gadgetry found under the
hood or on the dashboard of
vehicles. Sensors embedded in
them can provide users with
more data than what today’s
tire pressure monitoring system
(TPMS) offers. These sensors
can signal when it’s time to
change a tire or report details
about uneven and dangerous
tire conditions. The tyre is able
to provide real-time informa-
tion on road conditions, tread
wear and depth, pressure and
temperature, load detection,
and other factors.
In March, 2017, Italian tyre

Tyres of the future


manufacturer Pirelli unveiled
its Cyber Car system, which
features tire sensors that can
track the status of the tire and
transmit data to an electronic
They will be smart and communicate control unit inside the car.
Information about pressure,
internal temperature, and tread
depth is integrated into the

A
By agencies efficient for longer, with bet- ted with a sensor network that Cyber Car system, which is
recent article in Au- ter wet grip performance, and allows it to check on its own then able to work with the car’s
tocar noted how tyre Active Tread technology that status and cull information on onboard computers to adjust
manufacturers some- senses road conditions and the environment, including the the anti-lock braking system
times come up with detects moisture and cold tem- road surface. The tire could also and stability control to suit the
wacky-sounding concepts. But, peratures, allowing the tread to activate built-in actuators in real tyre conditions.
it said, one idea consistently adapt to the conditions. time to change the shape of its These are the kind of data
touted has been the value of Goodyear’s intelligent tyre surface and tread depending vital to increasingly sophis-
smart tyres that can communi- prototype, shown in 2017, on the current state of the road ticated vehicle management
cate their condition and wear offered more with applications, beneath it. Continental is also systems. Remember, one of
status. It described a Smart including interaction with an experimenting with smart tyres the most common causes of
Tire; with treads made from autonomous car system in real and embedded sensors. car crashes is insufficiently
Liquid Farnesene Rubber (LFR) time. The 3D-printed Eagle 360 The importance of tyres is cared-for tyres.
which helps the tyre to remain Urban, whose skin is outfit- sometimes underestimated by

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March. 01 - 07 2019 37
Deus Kamunyu Muhwezi:
I cannot kneel before man
`My biggest fear is if the unlawful suspension sets a precedent
that is allowed to undermine the association and rights of workers’
By Agnes E Nantaba elor of Hotel Management programme and accountability and talks with sincerity and

D
was shortly elected chairman welfare com- honesty.
eus Kamunyu Muhwezi (PhD) mittee for Makerere University Business His values resonate with her mother’s
is the chairperson of Makerere Academic Staff Association (MUBASA). motto: “I cannot kneel before God in the
University Academic Staff As- When he started agitating for staff rights, evening and wake up in the morning to
sociation (MUASA). He is also he was axed. That left him with a part-time kneel before men for a living. I will work
the Publicity Secretary for the University teaching position at Makerere University hard with my hands”.
until he became full time staff in May 2006 Kamunyu is the seventh in the family of
Convocation (Alumni Association) and
as an assistant lecturer in the department 13 born in Nyabwiina village on the border
a lecturer for Hospitality and Tourism
of geography which was later transferred of Buhweju in Sheema district just below
management at the University. Kamunyu
to the school of forestry in the college of the mountains. His recalls his father being
made headline news following his suspen-
agriculture. Kamunyu was later confirmed committed to education and supporting
sion which led some university staff to go
into university service. He later embarked the establishment of community projects;
on a strike that lasted close to a month and on his PhD in destination marketing at including schools and churches.
stalled work at Uganda’s premier univer- Makerere University graduating in 2015. He started school at Nyabwiina Model
sity. In 2014, when the Public Relations office Primary School, joined Masheruka Second-
Kamunyu was suspended by University position for MUASA fell vacant, he applied ary School and St Joseph’s Secondary
Vice Chancellor Prof Barnabas Nawangwe and got it. School for advanced level. He went to do a
for allegedly persistently engaging in acts “That is when I started articulating Bachelor of Science in Nutri-
of misconduct and incitement with the positions of MUASA,” he says, “I tion and Dietetics in
intent to cause disobedience and strikes believe in transformative practices Morogoro Tanzania
among other cases. committed to good ethical deci- graduating in
Kamunyu denies the charges, arguing sions”. 2000. He is mar-
that the disputes at Makerere University In 2017, Kamunyu ried with three
would not have happened if leaders up- competed for MUASA children.
held the rule of law and embraced decision chairperson in a heated
ethics at all times. election, won and started
“When a leader of Africa’s premier on a contract that expires in
university chooses draconian rule other November 2019.
than systems under the pretext of caus- Kamunyu says he does
ing discipline, then, we must worry,” says not regret fighting for the
Kamunyu. transformation of Maker-
“If all Public Leaders worked hard ere University. He says his
to build corruption proof institutions, actions are guided by the
processes and served common interests, recommendations made in
we would have less wasteful agitation and the 2017 Rwendeire Report
save the best for our children”. which, among others, include
Business resumed at the university after reforming the University Coun-
the University Council offered to resolve cil. Kamunyu notes that the
the dispute between MUASA and the VC. struggle has caused him trouble
Kamunyu says he is committed to duty and because it threatens the status-
seeks to achieve transparency and account- quo. He says he fights
ability at all levels. for transparency,
He says, “If it’s a sin to believe in that,
then I would rather dwell in the sin as a
person because it facilitates my wellbeing
and it makes me the person I am”.
The same values he stands for caused
him to be expelled from Makerere Univer-
sity Business School (MUBS) in 2005 after
a battle in Kangaroo courts fighting for the
rights of fellow staff members. Kamunyu
had just returned from pursuing a Master
of Science in Hospitality Management from
the Technological University of Dublin. He
resumed lecturing at MUBS on the Bach-

38 March. 01 - 07 2019
Q&A

Deus Kamunyu’s Liteside


Any three things that we don’t What is the greatest thing you What is the quality you most What do you regard as the

I
know about you? have ever done? like in a man? lowest depth of misery?
am a positive thinker so I One thing that makes me Responsibility. As a little boy, I fell sick and
don’t like regression. I am very proud of myself is when became depressed because I
zero tolerant to corrupt de- I offered to teach mathematics Which words or phrases do had wanted to go to my dream
cisions and those that un- to young people in my village you most overuse? school but was unable to adapt.
dermine others but that doesn’t during my S.4 vacation for free. I am used to talking about Depression can be the lowest
mean that I can’t be party to a Many of my friends wanted ‘values’, knowledge’, ‘love’, for anyone.
process that takes people from me to charge them a fee but I ‘humility’ and ‘foundations’.
one place to another as long as refused. My Father applauded What is your favorite occupa-
it is justified. me and allowed me to take off What or who is the greatest tion?
time every day between 2 - 5 love of your life? I love teaching.
What is your idea of perfect pm. I’m also proud of my role My thoughts are always
happiness? in the Perimeter Wall Project at with my mother, wife and our What do you most value in
Happy people. Makerere University spear- children even when I don’t see your friends?
headed by Makerere University them or talk to them every day. Honesty and commitment.
What is your greatest fear? Convocation (2015 - 2019).
At the moment, my biggest What do you consider the most When and where were you Who are your real life heroes?
fear is if the unlawful suspen- overrated virtue? happiest? I always look up to the values
sion sets a precedent that is The wave of prosperity even The fall of Obote 11 govern- that my Parents espoused.
allowed to undermine the as- when many people are doing ment in 1985 because that is Mwalimu Julius K. Nyerere
sociation and rights of workers nothing about it is overrated. when as a young boy, I saw my is my Leadership Hero and I
at Makerere University. Everyone claims to prosper family; especially mum and enjoy reflecting on his virtuous
at some point and some have dad happy after many years of life.
What is the trait you most de- gone as far as murdering values anguish. My Bachelor’s degree
plore in yourself? to become prosperous. graduation in Tanzania was Who are your favorite writers?
Sometimes I have too much momentous because I had time I read Prof. Phares Mutib-
internal energy; especially What does being powerful with my father staying together wa’s book. It reveals our history
when I know that what I am mean to you? for a week and he was happy and the circumstances in which
trying to do is lawfully right Your ability to function. all through. The day I married we became who we are today. I
and helps me and others. It One’s ability to use their God my long-time friend Miriam. loved reading about my history
worries me sometimes. given talents to add value to from that perspective and the
anything or others. Power Which talent would you most fact that what finally gets us
What is the trait you most de- should be used for transforma- like to have? here is revealed.
plore in others? tion, preservation or sustenance I would be happier if I
Having a corrupt mind and and not destruction. became more innovative to Which historical figure do you
aiming to create every good mentor more young people. most identify with?
thing out of a situation for On what occasion do you lie? Mwalimu Julius Nyerere.
personal interest. I may be caught up in a nar- If you could change one thing Having studied in Tanzania, he
rative that I didn’t create and about yourself, what would remains my inspiration. I really
Which living person do you find myself in some falsehood. I it be? admired his selflessness and
most admire? however try to avoid telling lies. We were never belittled as meekness and yet with power
At 80 years, my mother, children to feel insecure. I am, full of guidance.
Maria Kamunyu, only opens What do you most dislike therefore, proud with where I
her mouth to speak sense. I see about your appearance? am because it comes from my What is your greatest regret?
a very big contribution of my My physical being doesn’t upbringing. It has been a very good life in
mother in my life. Often times, really matter. a way that God has used me to
she has advised me and Where would you most like transform minds. The journey
I don’t regret the deci- Which living person do you to live? has been momentous and I
sions taken. I admire most despise? I feel more relevant in Ugan- don’t regret the calling.
her the most. I despise the corrupt. How da at this point in its revolution.
I wish they knew that their ac- How would you like to die?
What is your great- tions destroy innocent lives and What is your most treasured Peacefully in my sleep.
est extravagance? undermine development. possession?
I am focused As a family, we started a What is your motto?
on innovation, What is the quality you most small enterprise which we I cannot kneel before God in
creativity and like in a woman? strive to get somewhere and the evening to worship Him
people’s ability Virtuous and loving, recog- once it is there, it will be my and then kneel before men in
to be part of a nizing that her role is not in greatest possession. the morning for a living, I will
changing world. competition with others work hard.

March. 01 - 07 2019 39
Global comment
By Kaushik Basu
Ending America’s World Bank monopoly
While is has always had an American president,
there is no official reason why this must be the case

T
he nomination earlier this month to financial or economic crises, the Bank the case.
of David Malpass, a senior U.S. focuses on long-term solutions to long- At the World Bank, the United States has
Treasury Department official, for the standing problems, such as chronic poverty, the largest share of the vote – 15.98% – fol-
post of World Bank president came malnourishment, and the retreat of water lowed by Japan (6.89%), China (4.45%),
as something of a relief. Malpass is, after all, tables. That explains why four former Germany (4.03%), and the United Kingdom
the choice of US President Donald Trump, World Bank chief economists were among and France (3.78% each). Given this, the
who is known for backing extreme and the 13 economists from around the world US need persuade only another nine or ten
unqualified job candidates. But that does who issued the 2016 Stockholm Statement, countries to support its nominee.
not mean that Malpass is the ideal choice for which summed up many of the views This would be easy enough. But, histori-
the job. reflected in the shift away from the Wash- cally, Western European countries have
In fact, while it could have been worse, ington Consensus. always supported the U.S. candidate, while
Malpass’ nomination was a distinct disap- Under Malpass, however, this progress the U.S. has always backed a European to
pointment. For one thing, his skepticism could be undone, with the World Bank once head the IMF. These countries owe it to the
toward multilateral institutions runs deep. again guided by the mantra of economic world to rethink this arrangement, in order
For another, he is a Trump loyalist who has growth above all else. There is no reason to ensure that the head of such an important
often stressed the paramount importance of to think that Malpass would uphold the global institution is chosen on the basis of
economic growth – especially U.S. growth. World Bank’s commitment to fighting cli- merit alone.
More fundamentally, Malpass is conserva- mate change, or that he would encourage To U.S. President Barack Obama’s credit,
tive, and the World Bank is not. consideration of local realities, inclusive- he appointed Kim, who beyond being a
To be sure, the World Bank was once the ness, or equitable distributive outcomes less-than-typical American (his father hailed
standard-bearer of economic orthodoxy, in creating policies. It is far from clear that from North Korea), had a track record of
reflected in the post-Cold War policy cock- he would treat the world’s poor and poor global engagement and a passion for devel-
tail of privatisation and deregulation known countries with the appropriate respect or opment in some of the poorest regions of
as the Washington Consensus. The institu- empathy. the world. Unfortunately, Kim left his post
tion codified a set of archconservative rules What the World Bank needs is someone prematurely.
on trade, capital flows, and fiscal and mon- loyal not to the US president, but to certain In this context, Europe, China, and India
etary policies, with which it then compelled ideals and ideas. And, while the World should be putting forward candidates as
developing economies around the world to Bank has always had an American presi- well, without regard for nationality. From
comply. dent, from Eugene Meyer to Jim Yong Kim, Nigeria’s Ngozi Okonjo-Iweala to India’s
But, over the years, the Washington Con- there is no official reason why this must be Raghuram Rajan, there is no shortage of
sensus has come under fire, with some options.
of the most cogent attacks coming from a If Malpass does end up getting the job,
former World Bank chief economist, the we can only hope that he will surprise us
Nobel laureate Joseph E. Stiglitz. Among – and Trump – by standing up for global
other things, Stiglitz pointed out that the At the World Bank, values and interests instead of American
Washington Consensus was not a con-
sensus at all. Instead, it was “a set of policies
the United States exceptionalism, and by prioritizing equity,
poverty reduction, and sustainability
formulated between 15th and 19th streets” has the largest over short-term growth. After all, Robert
in Washington, DC, by the US Treasury,
the International Monetary Fund, and the
share of the vote – McNamara came from the killing fields of
Vietnam to become one of the most progres-
World Bank. 15.98% – followed sive heads of the World Bank.
By now, the World Bank, the IMF, and by Japan (6.89%), But that does not mean that Malpass
economists have moved away from the should simply be handed the World Bank
Washington Consensus. It is now widely China (4.45%), presidency. It is too important a position to
recognised that devising effective economic Germany (4.03%), be filled by default.
policies demands sensitivity to the local
culture and mindset, and that beyond and the United Kaushik Basu, former Chief Economist of
reducing poverty, efforts must be made Kingdom and the World Bank and former Chief Economic
to curb inequality. After all, by stifling the Adviser to the Government of India, is Professor
voices of the poor – and giving the wealthy France (3.78% each) of Economics at Cornell University and
undue political influence – high inequality Nonresident Senior Fellow at the Brookings
undermines democracy. Institution.
This is particularly important for the
World Bank. Unlike the IMF, which is Copyright: Project Syndicate, 2019.
responsible for headline-grabbing responses

40 March. 01 - 07 2019
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