Uganda Business, Economy and Infrastructure News [Archive] - Page 2

u.g boy

September 9th, 2010, 05:37 PM

Beggars agree to get off Gulu streets
Wednesday, 8th September, 2010
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By Gillian Lamunu

There will soon be no more beggars on the streets of Gulu if they adhere to their unanimous decision to leave the streets to find alternative means of survival. The beggars made the decision yesterday at a meeting in Gulu town with the staff of Peko Rwede Peke, a local community-based organisation.

The organisation aims at helping the beggars to leave the streets and get rehabilitated in their homes. Victoria Ladoo, 70, a resident of Aywee, noted that she lost her five children in an inferno in the 1990s. “If I had someone to help me, I would not be looking for help from strangers,” she said.

Ladoo added that since the institution had come up to help them, “any beggar who will be harassed on the streets should not blame anybody”.

Terija Labwori, a resident of Layibi Techo, said although she has relatives who are well off, they are reluctant to give her assistance. “I am crippled but I have been digging all my life. I only started begging when I lost my sight,” she explained.

Dickson Okumu, 52, called on the organisation to provide the beggars with food, saying most of them are pushed to the street because they are too weak to work.

He expressed disappointment with some organisations which create little impact in their lives. “I do not work, so feeding is my biggest problem. When my relatives brought me to town during the insurgency, they went back to the village and left me behind but I do not wish to beg again from now. It is embarrassing,” Okumu said.

Many of the beggars, however, preferred to be referred to as vulnerable persons. The organisation’s coordinator, Robert Oringa, said they have decided to lobby for funds, adding that they have so far registered 25 beggars in the past two weeks.

Gulu municipal secretary for works and finance Vincent Onono said there was a rising number of beggars in Gulu town, noting that in the villages, people do not give them money, so they move to towns.

Arua to get new bridges
Wednesday, 8th September, 2010
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Workers constructing gabions for a bridge in Alido valley in Arua

By Richard Adrama

Arua district will have about 10 bridges when the ongoing construction works of the new ones and renovation of the old ones is completed.

The district engineer, Lawrence Pariyo, on Tuesday said the construction of three new bridges and six valley crossings, and the renovations will cost about sh210m.

“Following the recent floods where culverts were washed away, the works ministry intervened and gave us support to handle some of the critical cases,” Pariyo said.

“The district received 246 meters of culverts and 200 pieces of gabion boxes,” he said. The gabion boxes, Pariyo explained, are meant for emergency repairs on bridges and culverts. Gabions are used in the construction of roads and bridges in valley areas, Pariyo explained.

He said a valley-crossing will be constructed in Ullepi and bridges in Adumi Linya and Erifu. He added that a road connecting Ajia trading centre to Oci Primary School had been fitted with a culvert to control flooding.

Pariyo said gibions will be built on the Ullepi-Offaka-Nyiribu road, which is situated in a valley and is also prone to flooding. “Such valleys have been an impediment to transport and communication. The floods render the roads impassable, especially for cyclists,” he said.

“We will focus on installation works so that projects are completed before the closure of this financial year,” Pariyo added. Last financial year, the district constructed two bridges, one in Pajulu and another in Adumi.

Stanbic takes charge
Wednesday, 8th September, 2010
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By Sylvia Juuko

STANBIC Bank’s counter dominated trading in Tuesday’s session at the Uganda Securities Exchange (USE).

The bank earned sh61.5m turnover, an improvement from last week’s sh33.2m.

The bank’s share price closed at sh240, slightly higher than the previous Tuesday’s sh235.

Low liquidity continues to dog the USE, with total turnover of sh83m registered, which is a drop from sh100m last week. Over 507,600 shares changed hands, a drop from 722,636 a week ago.

The All Share Index was at 1055.6.
There was a decline in Uganda Clays’ share price to sh56, from sh60. Its turnover was at sh13.4m compared to sh20.6m the previous week. Shares traded were 241,000, from 344,491.

National Insurance Corporation’s counter was inactive. Its share price dropped to sh70, from sh75 recorded a week ago.

There was a slump in trading at the New Vision counter, with sh1.3m turnover compared to sh13m last week. Shares traded declined to 1,700 at sh814, from 16,118 at sh810.

At the dfcu Bank counter, turnover was sh6.7m with 8,400 shares traded, while the share price stabilised at sh805.

This was slightly changed from last week’s turnover of sh6.6m and volume of 8,232 shares

How Uganda plans to manage the oil money
Wednesday, 8th September, 2010
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Petroleum drillers at the exlporation area 3A near Lake Albert in Hoima district

By Ibrahim Kasita

THE Central Bank will handle and manage revenues accruing from Uganda’s nascent oil and gas industry, a senior official has revealed.

A separate fund, the petroleum fund, will be set up where all the oil money will be deposited. A portion of the funds will be invested abroad, he added.

“The Central Bank will manage our oil revenue because it already has the capacity to manage foreign reserves,” Lawrence Kiiza, a director for economic affairs in the finance ministry, said.

“Withdrawals from the fund will be strict and controlled by clear rules. The guidelines will be supported by law to be enacted by Parliament.”

Uganda had $2,520m in foreign currency reserves in May, or about four months’ worth of future imports of goods and services.

The decision to let the Bank of Uganda manage the oil money aims at ensuring transparent governance and sustainability in the management of the petroleum fund.

Kiiza said spending from the fund would be for targeted development objectives.

Uganda’s petroleum resources in the Lake Albert basin are estimated to be over two billion barrels. This is sufficient for commercial oil production for 30-years.

This could generate the countryover $2b every year.
The revenue proceeds come from licensing fees, bonuses, royalties, wellhead severance, income/profit tax, value added tax and export tariffs.

To avoid the so-called ‘Dutch disease,’ a concept that purportedly explains the apparent relationship between the increase in exploitation of natural resources and a decline in non-extractive sectors, Uganda must ensure that efficient and effective management of the oil cash.

“Integrating the oil and gas industry in the national economy is very important. Oil, like other commodities, is a finite resource associated with uncertainties and instabilities,” Kiiza explained.

“We must draw a plan and save part of the oil money, and invest the other to be able to sail through difficult times like when oil prices and volumes reduce.”

Kiiza reasoned that investing off-shore is critical because “the economy is shallow, the stock market is weak, yet the money earned from oil proceeds must earn returns.”

However, such plans present significant challenges.

On one hand, there is the need for a vehicle to invest windfall surpluses for future generations and toring-fence today’s wealth from greedy leaders.

But still, investing offshore would be political dynamite as there is an urgent need to develop infrastructure and fight poverty.

Therefore, the funds would more likely be deployed at home, according to experts.

“Oil should be integrated in the economy rather than having an oil economy. We need to understand that an oil economy will ‘over heat’ and cause trouble,” Kiiza warned.

“It could create artificial inflation, which has adverse impact on the low-income earners and the wage structure.

Oil reserves are an exhaustible resource with an uncertain and finite revenue stream.

It is important to have a sound macro-economic policy to manage the revenue stream, maintain macro-economic stability, and, through sound investments, create permanent income.

Uganda is one of the fastest-growing economies in Africa, historically driven by agricultural exports, including coffee, tobacco and fish.

For many years, the country struggled with severe poverty, corruption and civil conflict, but has seen strong economic growth in recent years because of macro-economic and structural reforms.

Indeed, the oil cash can lead to robust and sustainable economic growth.

This is only possible if coupled with economic freedom, fighting corruption and better business conditions, experts say.

This calls for effective, transparent and accountable state structures if the oil and gas resource is to translate into economic development.

“Strong safeguards should be put in place to ensure that the oil revenue is properly managed and used to reduce rampant poverty,” economists advise.

A key element that is critical for oil governance is the rule of law, enforcing the property rights law and limiting the state’s interference with the laws governing the petroleum fund.

There is also a need to ensure that oil and gas exploitation activities do not negatively affect the social, economic and environmental conditions of the regions from which the resource is extracted.

Oil is a new development in Uganda. It has the potential of transforming the country.

However, if mismanaged, it can plunge the country into abject poverty, environmental degradation, insecurity and misery amidst the plenty of petro-dollars.

The key issues to be considered in the new petroleum law should include revenue management and benefit sharing, waste management and environmental protection, and industry oversight and corporate governance, using a multi-country survey, according to sector experts.

Fiscal management must keep a strong focus on the non-oil economy because it is hard to predict with accuracy the oil revenues. These should be separated from non-oil revenues for fiscal planning purposes.

Uganda should resist from the tendency of over-estimating the value of petroleum resources or under-estimating the non-oil economy.

Effective, far-reaching legislation is essential if Uganda hopes to benefit from its oil reserves and avoid the oil curse. The oil and gas resource presents a mixture of promise and uncertainty.

With a struggling but slowly growing economy, Uganda could take advantage of the anticipated oil and gas revenue windfall to exploit other resources, invest in public and social infrastructure, giving the economy a significant boost.

Makerere in value addition
Wednesday, 8th September, 2010
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Dr Yusuf Byaruhanga (left) explains the use of the machines at the faculty’s incubation centre

By Sylvia Juuko

INCUBATION centers that nurture budding and youthful entrepreneurs is what higher learning institutions need to produce job creators.

Makerere University’s department of food science and technology set up such a centre to nurture business start-ups for continuing students.

Professor John Muyonga, head of department is optimistic that the stage has been set to create 200 direct jobs annually.

“We want to facilitate commercialisation of research and knowledge. Under this initiative, an incubator centre was created for nurturing start-ups,” he explains.

He says the core clientele are students, researchers and in some unique cases, non-students.

As an incentive to churn out different ideas, the faculty has engaged students in competition in which experts are brought in to evaluate products and award marks.

“The winners are given money to market, test and tell us where the product has been sold and the level of capacity,” he explains.

The students are also trained in entrepreneurship which is not a core part of the food science and technology course.

“This training supports their efforts and because of this, many products moved from books to the market; most of them at a small level,” he said.

At the end of last year, about 50 jobs were created out of the incubation centre initiatives.

He said there were a range of products that have been produced under the food, technology and business incubation centre.

Some of the projects that have created jobs include a group that has made bushera (fermented non-alcoholic drink) which is well packaged, cheaper but filled with nutrients.

Another equally interesting product is the Tofu, also know as Soya bean curd that can be substituted for meat. It has a meat like taste. It is a source of protein with no cholesterol and low in saturated fat.

Nutrient rich cookies i.e. vitamins, minerals, groundnuts which adds nutrition

Others include sausages, flour-nutrient enhanced mixture (beans, millet, Soya) or (rice, Soya and grains) that can be used to make cookies, Juice and jam from goose berries.

Plans are underway to create a forum that will link technology developers and entrepreneurs and funders that will facilitate turning research ideas into products

“We want to liaise with the Private Sector Foundation (PSFU) and the Uganda Investment Authority (UIA) and link them to technology developers on how to move forward. Options include either selling off the technology or the developer could become a shareholder which will help us produce practical graduates,” he stressed.

Muyonga says the department has 12 different types of technologies that are being fine-tuned and will be available for scaling up into projects.

Some of these include oil made from fish for vitamins, grain amaranth from seeds, producing noodles, syrup from maize that can be used as a sweetener, highly nutritious pudding, standardising banana beer.

Work is on to make sweet potatoes last longer without peels and water, fruit based toffee with high nutrition content, ready to cook vegetable, technology that can enable passion fruit have a longer shelf life, among others.

“The concept is to modernise traditional technology or foods or put science into traditional technology or foods. We have not contributed to international cuisine because we have not applied technology to our products,” he said.

The plan is also to roll out from the department to take the technology to areas that supply the raw materials.

Following President Yoweri Museveni’s visit last year, the department was allocated some funds from the National budget for its reach and technology activities.

The Department is in the process of procuring a mobile fruit processing unit that can be located in fruit producing areas.

“We want to set up micro projects away from Makerere but they must fit within the budget. We want to facilitate entrepreneurs but not turn Makerere into a business model,” he emphasised.

He pointed out the importance of venture capital that can be used as a source of funding to scale up the small enterprises set up by students to allow them to expand.

“Our primary role is social marketing. If we substituted 30% of artificial drinks on the market with our products that have high nutritional value, we would have made a contribution,” he said.

u.g boy

September 10th, 2010, 05:25 PM

Entrepreneurs to bag sh600m
Thursday, 9th September, 2010
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By David Ssempijja

EIGHTEEN up-coming entrepreneurs, with brilliant business ideas, will share sh600m among themselves at this year’s annual Start your business competition.

The competition, organised by Private Sector Foundation Uganda (PSFU), seeks to help people establish and run businesses successfully.

“These competitions are intended to stimulate business mind and encourage creative innovation. We need to support brilliant ideas and help the people behind them bring them to life,” Gideon Badagawa, PSFU executive director, told journalists at the foundation’s head office in Nakasero recently.

The winners will be selected from 3,400 entries at a function to be held tomorrow in Kampala.

private sector told to go long-term
Thursday, 9th September, 2010
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By Prossy Nandudu

THE private sector should aim at long-term projects of between 10 to 15 years in order to sustain and develop the industry.

Because the private sector is dominated by small-and-medium enterprises, it does not have the financing capacity needed for growth.

“If you are going to think long as the private sector, we should be able to finance long-term projects.

“You can not think long and finance short using the commercial banks,” Gideon Badagawa, the Private Sector Foundation chief, said.

Badagawa disclosed that most small enterprises were ill-prepared in terms of skills development and capital for technology and market intelligence required to enhance productivity.

He said while commercial banks offered short-term financing, interest rates were still high at 18 to 20%.
This, he explained, was too high compared to the neighbouring countries.
Kenya and Tanzania charge between 12 and 13%.

“For our neighbours, the rates are this low because they are not looking at only commercial banks, but have spread out to agriculture and development banks,” the private sector executive director added.

Badagawa said there was need for the private sector to work with the Uganda Development Bank, the East Africa Development Bank and other funding organisations to make it easy for the micro-enterprises to acquire funding.
“Uganda’s banking sector is dominated by the commercial banks.

“We want to break away from this if we are going to compete effectively in the regional market,” he said.

“We want to see the development of long-term financing for the micro-enterprises to grow to macro, and eventually become bigger enterprises,” Badagawa pointed out last week during the announcement of the 18 winners of the foundation’s business plan competition in Kampala.

Flower workers sign union deal
Thursday, 9th September, 2010
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deal: Barasa (left) exchange documents with Schrier

By Francis Emorut

OVER 8,000 flower workers have gained bargaining power for their entitlements following the signing of a collective bargaining agreement with 20 flower firms.

The agreement, signed on Wednesday between Uganda Flower Exporters Association and the Uganda Horticultural and Allied Workers’ Union, is aimed at maintaining good and harmonious working relations in the industry.

“The agreement has put in place better arrangement for improvement of working conditions, salaries, wages and other benefits,” Stephen Barasa, the secretary general of the Uganda Horticultural and Allied Workers,” said.

Barasa said methods of settling grievances among the workers would be reached peacefully.

Jacques Schrier, the chairman of the Uganda Flower Exporters Association, assured flower workers that flower firms would implement the agreement.

Schrier said the association considers workers as an asset in the flower industry.

u.g boy

September 10th, 2010, 06:19 PM

the road katine -lira road
http://static.guim.co.uk/sys-images/Guardian/Pix/pixies/2010/9/10/1284113660373/katine-lifeline-new-road-006.jpg

u.g boy

September 11th, 2010, 02:22 PM

EAC, Turkey to discuss free trade pacts

By Dorothy Nakaweesi (email the author)

Posted Friday, September 10 2010 at 00:00

The East Africa Community and Turkey will discuss trade partnerships when they meet in a business forum between September 28 and 30.
The two trading partners will discuss the possibility of a Free Trade Agreement and a Trade and Investment Framework Agreement.

The benefits of this development will see EAC expand and diversify her exports; through tapping into the Turkish market and its expanded reach.

A communication issued to Daily Monitor from the EAC secretariat on Wednesday said: “The forum will see matching of projects and investors – between EAC and Turkish investors looking to establish businesses in the region; complementary industries and joint ventures.”

Understanding business
Other issues to be discussed include improved understanding of the business and investment opportunities and incentives in both Turkey and the EAC region.

The forum will have detailed presentations on key sectors including; textiles and clothing, agriculture and agro-processing. Construction and real estate development, infrastructure development, mining and natural resources and tourism will also be considered.

Recently, Turkish Airlines opened routes in the region including Uganda, Tanzania and Kenya to focus on the improvement of trade and economic relations.

The developments reflect the momentum gained by EAC and Turkey relations, which places the two countries in a comfortable position to enter fruitful economic and cultural relations.

Turkey, being the only pluralist secular democracy in the Muslim world, offers the EAC region a physical and cultural bridge to Europe and Asia, North and South, in the heart of Eurasia.

Big donor
The 16th largest and 4th fastest growing economy in the world, Turkey’s GNP is about 798 billion dollars. Turkey is also the 4th biggest donor in the world with respect to its GNP. Its economy is service sector driven, accounting for 59.3 per cent of GDP in 2007.

The agricultural sector accounts for 8.9 per cent of the GDP, while the industrial sector accounts for 30.8 per cent. The EAC region offers investors and potential exporters the 2nd largest single market in Africa of around 130 million consumers.

The region through Kenya, Uganda, Rwanda and Burundi, investors have access to the COMESA market of 385 million consumers and, through Tanzania, to the SADC market of 215 million people.

u.g boy

September 11th, 2010, 09:13 PM

Uganda’s Broadband Revenues to Surge With Arrival of New Cable Capacity
9 September 2010 41 No Comment

Cambridge, Massachusetts — The telecom market in Uganda generated $638 million in 2009, almost exclusively through mobile services. Fixed broadband services is expected to join the mobile segment as a strong driver of growth as the new undersea cables land in the coasts of East Africa and the terrestrial fiber rings start reaching the landlocked country. Uganda is predicted to grow at an impressive CAGR of 11.5 percent over the next five years, reaching $1.23 billion by 2015, according to a new report from Pyramid Research (www.pyr.com).

Uganda: Broadband Revenues to Surge With Arrival of New Cable Capacity offers a precise profile of the country’s telecommunications, media, and technology sectors based on proprietary data from our research in the market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies. Download an excerpt of this report here. Purchase the report here.

The Ugandan mobile market is highly competitive, but the low level of mobile penetration at 32.8 percent in 2009 indicates that there is still much demand to be fulfilled. “The main obstacle to increasing penetration has been the provision of affordable last-mile access to rural areas, where the majority of the Ugandans live and where income levels are too low to justify individual subscriptions and handset ownership. However, forms of centralization are emerging to solve this problem,” says Kerem Arsal, Analyst at Pyramid Research and author of this report. “We expect mobile subscriptions in Uganda to double during our forecasting period and grow from 10.7 million in 2010 to 20.9 million in 2015, with a penetration rate of 52.7 percent,” he adds.

The real opportunity, however, lies in the broadband segment. “Data revenue and adoption in East Africa will grow fast with the decline in the costs of international bandwidth due to the new undersea cables,” indicates Arsal. Adding to this the unfulfilled demand for Internet, the broadband market will comprise a quarter billion dollars in 2015. Fixed broadband will be the primary source of revenue growth in Uganda and will generate US$229 million in 2015.

Uganda: Broadband Revenues to Surge With Arrival of New Cable Capacity is part of Pyramid Research’s Africa and the Middle East Country Intelligence Report Series and is priced at $990

u.g boy

September 12th, 2010, 02:05 PM

Development Plan can be achieved - expert
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FOCUSED: Prof. Nuwagaba. FILE PHOTO
(email the author)

Posted Sunday, September 12 2010 at 00:00

In Summary

Key outlines of the NDP

The National Development Plan which was launched by President Museveni in April aims at transforming Uganda from a peasantry to modern society within 30 years. It aims at addressing structural bottlenecks in the economy in order to accelerate social economic transformation for prosperity.

* The plan replaces the Poverty Eradication Action Plan (PEAP) and will guide the country’s development programmes over the next five years. Its successful implementation will ensure that on average, every Ugandan earns at least Shs1.8 million, up from the current Shs1 million, per year.
* The plan is to be achieved through a quasi-market environment where the private sector will remain the engine of growth and development.It will be achieved through four key sectors. Primary growth sectors that directly produce goods and services like agriculture development, forestry, tourism, mining, oil and gas, manufacturing, infrastructure and communication development and housing development will be emphasised.
* Complementary sectors which will provide institutional and infrastructural support for the plan will focus on science and technology, transport, energy, water for production, land management and urban development.
* Social sectors will focus on population, labour and employment, education especially skills development, health improvement, HIV/Aids, water and sanitation and social development.
* Enabling sectors to achieve the NDP include legislature, justice, law and order, defence and security, climate change and environment.
* Through the plan, government hopes to create employment, raise per capita income levels, increase labour force distribution, raise the country’s human development and gender indicators and improve the country’s competitiveness to levels associated with middle income countries.
* According to the plan outline, investment priorities will include physical infrastructure development especially energy, railway and air transportation, human resource development like education, skills development, health and water
* During that period, the proportion of people living below the poverty line is expected to decline from the current 31 per cent to about 24.5 by 2014/15-above the MDG target of 28 per cent.
* Based on the economic forecasts, GDP growth over the plan period is expected to average 7.2 per cent per anum. At this GDP growth rate, nominal per capita income is projected to increase from $506 in 2008/9 to $850 by 2014/15(the average gdp for people out of urban areas.)
* The plan is largely financed through domestic taxes and the private sector.

Early this year, the government unveiled a Shs54 trillion National Development Plan meant to transform the country from a predominantly peasant to a middle income nation. Development expert Prof. Augustus Nuwagaba gives his assessment of the plan and the challenges it might face in an interview with Sunday Monitor’s Evelyn Lirri:-

How significant is the NDP?
It’s a departure from the way we used to plan because we have been planning on an ad hoc basis. Now the NDP provides a relatively long term framework for planning because it’s a five-year plan but rolled out under six major phases to realise a 30-year vision.
Is this kind of planning good for Uganda?
This is the kind of planning that the World Bank and the International Monetary Fund opposed in the last 40 years but it’s now very surprising and gratifying that it has been adopted. The framework is long enough to allow projections to be made and targets to be achieved.
Can we achieve the vision of transforming from a peasant to middle income country within the given period?
In order to achieve a vision, it must be clearly understood. The vision holder must sell it to the people whom he wants to move this vision with and the people must buy it. This is what happened in Singapore and we can do it here. The challenge here is the binding constraint of resources.
The Plan is estimated to cost Shs54 trillion. Is this money enough?
It should be enough if there was no corruption. It’s the kind of money that should be found and it’s not much because our budget is about Shs7 trillion annually.
We also have development partners but I don’t want to say we can depend on them entirely for financial resources but they could provide substantial input. The problem will be leakage because even with the little money that is available to us, it’s difficult to ascertain if it will be used to carry out the planned activities.
How does an under-developed region like Karamoja fit and benefit from this plan?
Karamoja is listed in the sub national development category. What we said is that there must be some core projects to dealing with sub-national development areas because you cannot have a country with an economy purportedly growing at 8.5 per cent yet most of the people are not identifying with this growth.
Most of these areas are hard to reach, affected by civil strife and are remote in terms of infrastructure. So under the sub-national development approach, these challenges should be addressed by putting in place development programmes that fit the circumstances.
What lessons can Uganda learn from Cape Verde - an African country recently affirmed middle income status by the African Development Bank.
The case of Cape Verde and Mauritius which are some of the African countries that are ranked as middle income nations is an issue of governance, accountability and cost effective spending. This means that these countries spend their budgets on areas which have generally been regarded as stimulants for economic growth. This is what is called strategic planning approach where you flagship certain sectors and spend most of your resources on these priority sectors.
Flag-shipping the economy; would this work for Uganda?
This is something that Uganda should consider because the resource envelope is very small. You cannot continue with a very thin resource envelope and spread it like we did with the Poverty Eradication Action Plan-over 35 interventions. In the NDP we argued that lets have priority areas which we can flagship that will eventually stimulate economic growth and all other areas will ride on these specific cases.
I had proposed education and training, agriculture and infrastructure; particularly energy as major priority areas. If you flagship say agriculture, modernise and mechanise it, abolish small holder farmers and ensure low cost of production in terms, infrastructure and link production areas to consumption areas then you will have improved the well being of majority of the population.
[Editor] flagship basically means making a particular sector a priority and then put most of the resources/investing in that particular sector that has been outlined as a priority area.

The plan targets to reduce poverty from 31 to 25 per cent by 2015, slightly below the Millennium Development Goal of 28 per cent. Is this achievable?
It’s statistically achievable. The only problem is that the population is increasing fast and we shall be close to 40 million people by 2015.
So at a 28 per cent poverty reduction rate, in terms of numbers you will have more people in poverty, though statistically the percentage of people below poverty will be low.
Our population growth rate of 3.2 per anum is an aversive effect of any other effort. It discounts all other gains we would have made. That’s why China had to go for the one child policy after realizing that its population was the greatest obstacle to growth.
Because of this big and fast growing size, over 56 per cent of Uganda’s population is made up people below the age of 18 but they are not a productive resource.
How can we turn them into a quality population?
We could do it through skills enhancement and human capital development.
But it’s difficult because most of these people are already not a resource and can not be reverted to be a resource. We can do this with the newly-born people.
We need to change the curriculum by designing it to ensure people are creative, competitive and innovative and are able to create goods and services.
Can we benefit from a population dividend as a country?
Population dividend will come from the quality of human capital created from within this population. Uganda has highly educated people but it’s not a human capital population. To turn the population into a dividend, we must realign our education and training to ensure that people called educated are also skilled. This calls for a major transformation of the education sector.

u.g boy

September 13th, 2010, 06:38 PM

shumuk to inject $5m in its diversification into dairy sector
Sunday, 12th September, 2010
http://www.newvision.co.ug/NP/1284303946shukla.jpg
Shukla is very optimistic

By Chris Omony

ALLUMINIUM giant the Shumuk Group, is set to invest up to $5m (about sh12b) in the dairy sector, company officials announced over the weekend.

The group recently joined the dairy sector after acquiring a majority stake in the former Mbarara-based Alpha Dairies.

Speaking to journalists at the plant in Mbarara, Mukesh Shukla, the group chief exective officer, said the production process for fresh milk, yoghurt and ghee had already started.

“We launched our production process last month with mainly three products fresh milk, yoghurt and ghee.

“We are producing up to 50,000 litres of milk per day but we plan to double this figure in the next three months,” Shukla said.

“We shall also be having other related products as time goes by but those are the few products we are readily going to be having on the market at the moment,” he added.

He said the investment would be in two phases of $2m and $3m respectively.

“We have come up with very unique products and concepts under our ‘Go Fresh’ brand name, that we believe will make us very competitive in the sector,” the Shumuk boss stated.

Shukla said they had set up at over 200 milk collection centres at different parishes in the region to ensure consistent supply chain of milk.

“Because the biggest challenge in this business is the seasonal factor, which greatly affects the milk output,” he said.

u.g boy

September 14th, 2010, 05:28 PM

Arua cathedral being expanded
Monday, 13th September, 2010
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Workers demolishing a wall at the church during the expansion exercise

By Richard Adrama

THE renovation and expansion of Arua Catholic Cathedral in Ediofe is expected to be completed in time for its centenary celebrations due in 2012.

The cathedral priest, Fr. Celestino Onzima, said construction was going on smoothly and attributed the progress to Christians and well-wishers, whom he said had generously contributed to the project.

“It is through such initiatives that Christians can demonstrate the strength of their faith and their love for God,” Onzima said.

In an interview with New Vision recently, Onzima said each family in the church had contributed sh15,000 annually towards the project.

“Our target is to finish the project before 2012, when the Catholic community will be celebrating the cathedral’s centenary anniversary in February (2012),” he said.

After the expansion, the church will sit about 2,000 people. The current sitting capacity is 1,200.

Onzima said the diocese has planned a fundraising function but no date has been set.

Some of the ongoing works on the church include replacing the inside wall plastering and ceiling timber that was destroyed by termites. The floor will be fitted with marble tiles, Onzima explained.

The church will also get a parking yard and a fence. Christine Anguba, 51, a resident of Alivu parish, said she was looking forward to seeing the church’s new look.

“I have been praying in this cathedral since I was a toddler. I was baptized and confirmed here,” she said.

Charles Leku, a member of the project board, said: “The expansion will be a relief for the Christian community, since it has increased drastically.”

He added that it would particularly help in accommodating the growing number of students from schools adjacent to the cathedral.

]African airlines eye dominance[/COLOR]
Monday, 13th September, 2010
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By Osere Emojong

African airlines are positioning themselves to stay dominant on continental routes by acquiring new planes or improving the existing ones. Already, South African Airways says it would buy new aircraft and upgrade the Boeing 83306, which flies to Entebbe International Airport.

“We are going to buy three more planes and upgrade the 83306, which flies to Uganda,” Aaron Munetsi, the South Africa Airways operations boss in charge of Africa, said in Kampala recently.

This comes two months after Kenya Airways said it had leased two Embraer air planes and would open new routes. These moves signify the growing competition in the global aviation industry.

In the past year, most airlines in Africa have been buying new planes, preparing to fly to new markets to counter competition from European firms, which are eating up the African air travel market.

Entebbe Airport is becoming a regional focal point in the air travel industry apparently due to Uganda’s steadily growing tourism sector.

Uganda tourism board recently said the country was anticipating hitting over $800m by the end of the year. Despite the promising growth in the air travel sector, Munetsi said Africa’s dilapidated infrastructure had frustrated the smooth growth of the industry, giving foreign firms an edge in the African market.

He said the infrastructure was built ages ago. .and the handling capacity was over-stretched.

Jinja prepares for World tourism fest
Monday, 13th September, 2010
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By Charles Kakamwa

Preparations for this year’s World Tourism Day that will be hosted in Jinja town, are in high gear, with several companies making final touches for the big event.

Organised by the Uganda Tourism Board and the Jinja Municipal Council, the event will be held on September 27 at the Crested Crane Hotel. President Yoweri Museveni is expected to preside over the function.

Simon Kaita, the municipal tourism development officer, said the theme of the event would focus on marine tourism. Kaita said several companies and institutions, including the UPDF, banks, hotels and schools will participate in the activities as part of their corporate social responsibility.

“This is one of the events to open the gates for Jinja as one of the best tourist destinations in the world. We should beautify the town and exhibit our tourism potential,” he said, adding that a lot of tourism endowments in the district were yet to be exploited.

Muhammed Kezaala, the mayor, applauded the government for choosing Jinja to host the world tourism day, saying this will boost the sleepy former industrial hub of Uganda.

“Jinja has some of the best tourism sites like Lake Victoria, the second largest fresh water body in the world and the source of River Nile.”

u.g boy

September 15th, 2010, 05:40 PM

Uganda Travel and Tourism News: Government gives ush8bn to Kampala
First published: 20100915 6:44:43 AM EST
More on Travel and Tourism in Uganda

Kampala City Council (KCC) has received 08 billion shillings from the Central government for the maintenance of 350 kilometers of tarmac roads in Kampala district starting from November this year.

But the Mayor of Kampala, Nasser Sebaggala says the money is still not enough.

sebaggala says most roads in Kampala are in poor state, full of potholes and eight billion shillings is too little to maintain the city roads.

The Mayor says in 2007 the Central government used over 40 billion shillings to repair 15.4Kms of the tarmac roads in the city but it is giving KCC eight billion shillings to maintain over 300kms.

Sebaggala says KCC needs over 800 billion shillings to work on city road network and unblock blocked drainage systems every year.

Nakivubo vendors get sh1b loan
Tuesday, 14th September, 2010
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By Chris Kiwawulo

THE Government has extended a sh1b interest-free-loan to Nakivubo Park yard Market vendors to enable them rebuild their businesses.

This is a fulfillment of President Yoweri Museveni’s pledge to the vendors whose stalls and merchandise got burnt on February 25, 2009.

The money was channeled through the Kampala United Park Yard SACCO, a vendors’ savings, credit and cooperative society formed in 2009.

The money, to be repaid in two years, was disbursed in three installments of sh200m in September 2009, sh400m two months later and sh400m in July this year.

Microfinance state minister Ruth Nankabirwa handed over the cheque to the vendors’ SACCO chairman, Charles Lubega, on Monday at the Microfinance Support Centre offices in Kololo, a Kampala suburb.

Nankabirwa urged the vendors to join the SACCO so as to benefit from the loan, adding that this was a fulfillment of the NRM Government’s Prosperity for All programme.

Lubega commended Government for fulfilling its promise. He said the vendors would pay a 17% interest per annum as management fees.

Museveni pledges sh63m for energy
Tuesday, 14th September, 2010
http://www.newvision.co.ug/NP/1284481758Untitled-9.jpg
Museveni (right) greeting Richard Nyakana, the Kabarole district secretary for production and natural resources, during a meeting at State House Entebbe. Next to Museveni is Maj. Okwir Rwaboni. Centre is Rugumayo

BY VISION REPORTER

President Yoweri Museveni has pledged sh63m towards the Kabarole district energy project. The pledge is in honour of the 20% required of the Government to top up the contribution of the rural electrification agency for the commencement and completion of the project.

The Government, recognising the importance of energy in transforming the quality of life of Ugandans, embarked on the process of systematic planning to meet the energy needs of Uganda’s population for social and economic development in an environmentally sustainable manner.

The Rural Electrification Agency’s principal responsibility is to ensure management of the Fund for equitable promotion of rural electricity access and connectivity.

Museveni was on Monday meeting a delegation from Toro sub-region to deliberate on issues affecting the area’s development. The eight-member delegation, led by Prof. Edward Rugumayo, met the President at State House Entebbe.

The team raised a number of challenges that have hampered the areas’ economic growth and requested for the President’s guidance.

The issues ranged from lack of enough secondary schools in some sub-counties, water shortage and energy to corruption among public servants.

The team said embezzling of public funds and misuse of offices by government officials without legal action against them greatly affects the President’s efforts to transform the country.

Lt. Dan Rubombora, who was part of the delegation, suggested that UPDF veterans be incorporated in the savings and credit cooperatives as this can save them the frustration of delayed gratuity.

Museveni gave sh20m to Kabarole Integrated Veterans Association to help them complete their commercial centre. The centre is to be used to generate income to benefit the members of the association.

The President also promised to honour his pledge of sh4b to Mountains of the Moon University in the next financial year to improve and construct new infrastructure.

He also pledged government support towards the construction of another secondary school in Kibaale sub-county to save the students the inconvenience of travelling long distances to access free education.

The President also gave a cash donation of sh1m to Stella Auma Kezaabu for the purchase of a solar dryer. Auma is a banana farmer and member to Kimuhonde banana growers group.

URA abandons city stadia for new home ground at Nangabo
Tuesday, 14th September, 2010
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By Michael Nsubuga

URA FC has acquired a new home ground at Gayaza-Nangabo county in Wakiso district.

The former Green Valley FC ground will host all URA home games starting with the 2010-2011 second round fixtures.

Club chairman David Sserebe said during the unveiling of a 35-man squad at the ground yesterday that the change was aimed at building a fan base for the club and also contribute towards the development of football from the grass roots.

Paul Kyeyune who represented
the Commissioner General said they intend to build a strong team under the theme ‘‘One team one dream’’ in partnership with the community.

The club unveiled 13 new players in their squad as they try to reclaim the league title they last won in 2008.

The recruits unveiled before playing a friendly with Gayaza FC include five former SC Villa players Simeon Masaba, Oscar Agaba, Robert Odongkara, Feni Ali and Brian Bwete.

Others are returnee Dan Wagaluka (Azam FC), Steven Bengo (Simba TZ) ,Joel Ayoku (Arua), John Njoroge (Simba TZ), Razo Rashid (Kamwokya), Franco Oringa (KCC), Ian Kalungi (Iganga), Brian Mateke (Busia) and Justus Anene from Kenya’s Posta.

West Nile oil search on track
Tuesday, 14th September, 2010
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By Frank Mugabi

THE hunt for oil and gas in the West Nile is progressing well, Neptune Petroleum Uganda, the firm that is conducting the exploration, has said.

The firm also revealed last week it would soon release results of the recent aero-gravity gradiometry survey that sought to gather more definitive information on the earth basement.

The study, completed in June, was commissioned to specifically identify structures with more prospective oil reservoir properties.

This was after the firm hit two dry wells in its previous drilling attempts. The ‘dry’ wells are Iti-1, which was drilled in June 2009 and Avivi-1, which was in February drilled to a depth of 764 metres, but did not encounter any oil.

However, further analysis of the data from the two wells confirmed the ‘generation and migration’ of oil in the exploration area. This development prompted Neptune to hire a team of experts from the British geo-physical survey firm, ARKeX, to do a more scientific study.

Tower Resources plc, a London-based oil and gas exploration company that owns Neptune, said a final interpretation of the data that was collected is expected at the end of this month.

Also, around this time, planning for a subsequent seismic survey will be finalised, the firm said. “This update confirms that current operations are on schedule.

“The quality of information being obtained is likely to enhance interpretation of the Uganda licence,” Peter Kingston, the Tower Resources chairman, explained

The seismic interpretation would also provide the basis for selecting a third well location, Kingston added. Previously, Kingston said, the target was to be ready to drill a third well, the commitment well, as designated in the production sharing agreement, in 2011.

This would, by design, allow time for a follow-up programme, if required, since the firm’s current licence expires in March 2012.

u.g boy

September 16th, 2010, 05:32 PM

Nebbi gets sh21m project
Wednesday, 15th September, 2010
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BY BEN OKETHWANGU

Over seven groups in Nebbi town are to benefit from a sh21m grant to boost community-driven development projects. The town clerk, Stephen Anecho, said the grant is part of the Government’s support to groups that already have income-generating activities.

He said the groups will be selected basing on their abilities. Anecho said the funds will be spent on bee-keeping, stone quarrying and other agricultural activities, which have great market potential.

Among the beneficiary groups are Canjuryemo Kuryeko, which will receive sh2.5m, Ticjuryemokuryeko, which will get sh2.2m and Nebbi town Widow Association, which will get sh1.8m.

During the launch of the project last week, the Nebbi LC3 chairman, Scooter Onen, urged the beneficiaries not to spend the money on alcohol and prostitution, but use it to educate their children.

Cranes leap frog in FIFA rankings
Wednesday, 15th September, 2010
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By Swalley Kenyi and Norman Katende

UGANDA has leaped three places to the 63rd position on the latest FIFA rankings released yesterday, its best ever rating.

The national soccer team also moved two places to the 11th on the continental body CAF standings just 10 places behind leaders Egypt.

The improvement follows the Cranes 3-0 defeat of Angola in their opening match of the 2012 Africa Nations Cup qualifiers and the 1-1 draw in an international friendly match with Zambia at Namboole last month.

From their lowest ranking of 121 in 2002, Uganda reached a best position of 71 in 2008 but has steadily improved to the current position which puts them ahead of group 10 AFCON qualifier opponents Angola (93), Kenya (144) and Guinea Bissau (140).

Cranes are looking to further improvement and national coach Robert Williamson has recalled professionals Eugene Ssepuuya and Nestroy Kizito on the team to start preparations for the game against Kenya on October 9 in Nairobi.

Ssepuuya, who had been ignored and Kizito, who failed to turn up due to injury, have had telephone conversations with Williamson and confirmed their availability.

The tactician yesterday reassured the country about his dream of raising the country’s football to continental level.

While addressing a press conference, he said that his agent is in final stages of concluding his contract, but that he has reserved all his focus on seeing that Cranes fly to the 2012 Nations Cup.

“The task ahead is enormous but I am here for more matches and I have to focus on the next match. I appeal for the support of all Ugandans,” he said.

Museveni to open Lugogo
Wednesday, 15th September, 2010
http://www.newvision.co.ug/NP/1284573938lugo.jpg
Museveni receiving an American football from Prof. Jonathan Samet of University of Southern California when a team of Public Health Promoters led by a US based Ugandan Ssebugwawo Robert

By Usher Komugisha and Norman Katende

UGANDA'S President Yoweri Kaguta Museveni is expected to open the newly refurbished Lugogo Indoor Stadium.

“We are waiting for him to give us an appointment in the first week of October so that he officially opens the stadium to the public,” explained NCS boss, Jasper Aligawesa. The stadium was constructed in 1954 and officially opened by Her Majesty, Queen Elizabeth II in 1962.

It has just undergone a sh1.2b refurbishment funded by MTN.

The renovation that kicked off last November was completed three weeks ago when a Dutch firm Descol sports services finished installing the multi-purpose floor that will be used by basketball, boxing, table tennis and volleyball.

Meanwhile the national soccer federation has taken steps in improving its fitness levels by naming a new standing committee of fitness and strength which started work last Friday.

The committee has CAF Fitness instructor Haruna Kebba, Maurice Matte, Hadijjah Namuyanja and national women soccer team coach Magidah Nantanda. It was named by FUFA CEO Edgar Watsonto help in training fitness.

to the national coaches, but also help set up a strength and fitness department in the federation.

“This is a modern world and sports is becoming more scientific. By having a committee of these people, we are looking at having the base for the development of the sport in the country,” explained Watson.

All the members attended the strength and fitness seminar conducted by Germany Professor Dr. Dietmar Schmidtbleicher at Namboole last month.

Watson also co-opted Innocent Asiimwe on the committee. Asiimwe has just returned from Germany where he has been undertaking a course in fitness and strength training.

City to get 10 fire stations
Wednesday, 15th September, 2010
http://www.newvision.co.ug/NP/1284568409Untitled-5.jpg
Kayihura inspecting Kisekka market

By Patrick Jaramogi
Kampala and neighbouring districts will get 10 fire stations before the year ends, the Inspector General of Police, Maj. Gen. Kale Kayihura, has revealed. Sources said the project would cost over sh10b.

Currently, Kampala has only one fire station located at the Clock Tower. The new stations will be at Bugolobi, Ntinda, Natete, Bweyogerere, Kawempe, Kabalagala, Nansana, Mukono and Kajjansi.

Kayihura was addressing Kisekka Market vendors after touring the burnt structures at the market following the August 30 fire outbreak.

A total of 98 stalls were destroyed, leaving 321 vendors jobless. The market management said at least sh2.9b was lost in the fire.

The cause of the fire is being investigated by the works ministry, the Government analytical laboratory and the Police Criminal Investigations Department.

The new fire stations followed complaints from the vendors that the Police fire fighting trucks and its equipment were archaic.

Kayihura was led by the Kampala Metropolitan Police commander, Andrew Sorowen, and the southern regional Police commander, Moses Kafeero.

Kayihura asked the management to beef up security at the market. He donated sh5m for the renovation of the market.

The vendors’ chairperson, Michael Kisembo, said following the fire outbreak, all illegal wiring had been outlawed in the market that deals mainly in second-hand motor vehicle spare parts.

He said the market management had also ordered all merchandise sold in corridors to be removed to create space in case of any emergency.

Mugyenzi makes energy saving stoves
Wednesday, 15th September, 2010
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Mugyenzi checks the stainless steel industrial vaseline mixer under fabrication

By David Ssempijja

PROTECTING the environment, conserving energy, saving time and money while doing business, are key considerations as man seeks to turn the world into a better place to live in.

This explains why Arthur Mugyenzi’s business line is slanted towards improved cooking stoves through Efficient Processing Equipment Limited (EPEL) located in Mukono industrial area.

The 10-year-old company has gained public credit for the level of technology it applies while fabricating stainless steel into energy-efficient institutional and domestic heavy duty and light cooking systems.

“This establishment was born out of the burning need to undertake the practice in innovations within the line of my academic qualification and to be self-employed,” Mugyenzi says.

“I worked for different individuals and institutions for some time until my mind succumbed to what my conscience had always needed, I decided to start this company,” Mugyenzi told Business Vision.

Mugyenzi holds a Bachelor of Science in Forestry from Makerere University, a certificate in Energy Economics from India, a post-graduate diploma in Business Management from the Uganda Management Institute and a Certificate in Energy Engineering from Nairobi.

His company is categorised as a Small and Medium Enterprise and is a member of the Uganda Manufacturers Association.

Mugyenzi’s innovations have enabled many schools, hospitals, hotels and universities in Uganda and other countries to save over 75% on cooking expenses.

Enterprise product line
The firm fabricates energy-saving multi-pan burner systems with over 12 cooking provisions, institutional water and milk 10-200-litre flasks that maintain temperatures for 24 hours, multi-litre capacity milk pasteurisers, baking ovens, industrial and domestic gas cookers, overhead water heating systems, deep friers, meat roasters and the heavy duty institutional stove-saucepan combination of 50-400 litres each with the capacity to serve up to 100-900 people.

All products are portable, giving convenience to users in case of infrastructural adjustments. For example, if the school wants to build classrooms in a place where the kitchen stands, the cooking systems can be easily shifted without causing loss on investment.

Portability has also suited interests of mobile groups like the armed forces and organisations taking care of unstable groups of people like those in internally displaced people’s camps.

“The EPEL cooking stoves are the result of vigorous research and a deep commitment to provide the best and relevant renewable energy technologies to Uganda’s institutions,” Mugyenzi says.

Products are also airlifted to Kenya, Tanzania, the DR Congo, Eritrea, Sudan, Ethiopia and other countries.
“We also undertake the responsibility of training kitchen personnel in the systems usage at no extra cost,” the director adds.

Cost effective products
Cooking stoves are fabricated in a design that enables the entire saucepan surface to be fully encased into the combustion (burning) chamber, exposing 95% of the cooked items to intense heat at the same time, unlike the case with a three-stone stove where the heat source is only at the bottom.

The heating chambers of the stainless steel stoves are made of a combination of metals and fire-resistant cement, subjected to wood or charcoal fire, leading to the production of a hotter smoke-free blue flame, yet the system is insulated to avoid losing heat to the outside environment.

The system can, for example, cause 300 litres of water to boil within 30 minutes. It would take two to three hours to boil the same amount using the traditional three-stone stoves.
The energy-saving stove also requires 70-85% less wood or charcoal to prepare the same amount of food. The reduction in the amount of wood also translates into savings in terms of the money spent on buying, transporting, preparing and storing firewood and charcoal.

Bagyenzi adds that in some instances, depending on customers’ choice, a cooking system can alternatively be fabricated with options that utilise gas, charcoal and wood. This eventually could relieve institutions of the electricity receipt burdens.

Environmentally, unlike the smoke-chocked traditional kitchen stoves, the energy savers produce smoke-free fire, creating a healthy environment for the users, not forgetting that using less wood and charcoal will require cutting fewer trees for fuel and the reverse is true.

According to business development consultant, Dr. Daniel Musaazi, it is not easy for institutions such as schools to cut expenses and improve on their cash positions by cutting staff numbers or their salaries or increase school fees or enrolments in order. But that cannot be said about the choice of energy.

“It is easy for managers at institutions to make decisions that will cut expenditure on energy and free up the much-needed cash for other school expenses. However, manufacturers must ensure the systems are affordable in terms of money,” Musaazi advises.
Dr. Nathan Twinamasiko, the executive director of the Dairy Development Authority (DDA), said EPEL’s milk pasteurisers have been serving as the recommended alternative for direct boiling of milk in saucepans.

“We banned direct boiling of milk in 2002. Since then, dealers have been using those pasteurisers, they have also complemented the cooling services DDA requires of dealers,” Twinamasiko told Business Vision.

Notable project achievements and challenges
Mugyenzi says that EPEL’s most memorable achievements have been working for the Intergovernmental Authority on Development when the firm was contracted to train over 650 people in manufacturing small domestic energy-saving stoves.

The other one was the World Food Program project code-named the National School Feeding Programme, in which the company provided cooking systems to several schools.

The director, however, says the biggest challenge facing his company is that it uses high quality stainless steel raw materials, making products slightly more expensive than those on the open market made out of aluminum.

“People need to understand that buying durable products may be a little expensive, but it becomes the cheapest in the long run because the users don’t spend much on maintenance costs,” he adds.

The other standing challenge facing, not only his company but also others involved in SME appropriate technology development, is the difficulty involved in shifting from labour to capital intensive technology.

Uganda’s millet gets market in Kenya
Wednesday, 15th September, 2010
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Jeffrey Gray, an agri-business consultant, John Tushabomwe, the Equity Bank credit manager (Oasis Mall branch) and Paul Forrest, the LEAD agri-business unit director, discussing after signing the memorandum of understanding last week

By David Ssempijja

EFFORTS to transform Uganda’s agricultural sector from subsistence into commercial production have been boosted with the signing of an agreement that seeks to stimulate millet production.

The deal was signed last week between the United States Agency for International Development (USAID) through its Livelihoods and Enterprises for Agricultural Development (LEAD) project, the World Food Programme (WFP), Equity Bank and the Kenya-based UNGA Holdings.

It aims at increasing millet production to satisfy local and foreign demand. Under the deal, about 2,000 metric tonnes are expected to be produced and exported to Kenya next year, reaching 6,000 tonnes annually by 2013.

According to the agreement, LEAD will search for the grain market, give grants and technical knowledge to smallholder farmer groups. WFP will provide modern warehouse facilities for the produce, UNGA, East Africa’s oldest grain miller, will buy the millet. Equity Bank will give farmers loans under the Warehouse Receipt System arrangement.

“One of the most challenging problems facing commercial agriculture progress has always been the lack of ready markets. However, this process will be fully-financed and the market is guaranteed.

“When farmers are sure of the market, they will be induced into millet farming since they will not be worried about where to sell or the price of the crop,” said the Livelihoods and Enterprises for Agricultural Development boss, Susan Corning, during the signing of the deal.
Farmers in Teso, Acholi and Lango regions are targeted. Communities in the regions grow the crop, climatic conditions are favourable and the areas’ soil texture supports the healthy growth of millet. The population there faced over 20 years of insurgency, thus the need for recovery through commercial farming.

Nick Hutchison, the UNGA managing director, said much as the company had agreed to provide a guaranteed minimum price of sh585 per kilogramme, it would adjust and pay according to the prevailing market prices, in case they rise above the minimum price.

Apollo Njoroge, the Equity Bank executive director, said the bank would finance up to 60% of the grain value in the warehouse.

“Similar deals aimed at uplifting farmers through the warehouse receipt system funding have done wonders for Kenya. We are optimistic that Ugandan millet farmers will benefit in the same way,” Njoroge said.

The warehouse receipt system allows farmers to deposit their produce with certified warehouses and wait for attractive prices. The system also helps avoid vagaries of weather. The produce is valued by managers and farmers are given receipts worth their grain value.

The receipts can even be used as collateral security in case farmers need loans before the produce is sold off.

The system helps farmers enjoy large economies of scale while selling because the pooled produce boosts their bargaining power.

WFP has begun installing cleaning and drying equipment for nine public warehouses in Uganda to help improve the country’s market infrastructure for small-holder farmer groups.

The equipment installation project is valued at a total of $2.4m (about sh5b).

u.g boy

September 17th, 2010, 05:30 PM

New test for cervical cancer launched
Thursday, 16th September, 2010
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Kato Herman, a lab technician at Mulago Hospital, showing off the new HPV test machine after it was commissioned yesterday

By Anne Mugisa

UGANDA has started using a new test for the virus that causes cervical cancer. The new technology, dubbed CareHPV, detects the Human Papilloma Virus.

Dr. Jose Jeromino, the director of the START-UP project in the US, said the tests will enable doctors to stop the development of cancer in an infected person.

Jeromino and Mulago Hospital gynaecologists yesterday launched the test, which is still in its pilot stage.

The project, which has attracted about 180 women since it began on August 18, is expected to run for two years before its rolled out to the rest of the country.

The technology, said to be 90% accurate, can detect the virus in an infected person within two hours.

Medics have been using the pap smear, which only detects the cancerous cells and is 50% accurate. The results for the pap smear take about a month.

Uganda is ranked among the 10 countries of the world with the highest cervical cancer cases.

It is the first African country and one of three in the developing world to use the new technology, according to Jeromino. Others are India and Nicaragua.

Cervical cancer accounts for 80% of the bed occupancy at Mulago Hospital’s gynaecology ward.

Doctors say most patients seek medical help too late.

The medics said women are reluctant to seek early testing because they fear undressing before health workers.

The CareHPV test, developed about seven years ago, has been in use in the US and the UK.

Uganda has since 2008, been vaccinating girls of 10 to 14 years, who are not sexually active, against the HPV in Nakasongola and Ibanda districts.

The country has already secured a donation of the vaccine for 10 more districts for two years.

The head of the Mulago gynaecology department, Dr. Josephat Byamugisha, yesterday said the new test would increase the number of women accessing early treatment.

He said women, who are infected with the HPV but have not developed the cancer, can be followed up to ensure that they stay healthy.

Byamugisha said 95% of those at
risk are not tested. Medics also said women who have not contracted HPV will be vaccinated.

He said those infected with the HPV would be tested to ascertain if they have developed the cancer.

The pre-cancer lesions can be removed before they develop into cancer. This, Byamugisha said, would enable the women to lead normal lives and have children.

Government aids Cranes Cup pursuit
Thursday, 16th September, 2010
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By Swalley Kenyi

GOVERNMENT has given national football governing body FUFA sh65m to facilitate the Cranes ahead of their next 2012 African Nations Cup qualifier against Kenya.

The government also advised FUFA to consider using part of the money to meet Cranes coach Robert Williamson’s financial obligations.

FUFA president Lawrence Mulindwa recently appealed to government to help them pay Williamson’s salary.

Mulindwa said yesterday the Ministry of Education and Sports had already approved the money and is already processing it.

“We have helped them (FUFA). But of course they (FUFA) have financial a problem of the coach. They may consider apportioning part of the sh65m to him,” said Omara Apita, the education and sports ministry assistant commissioner.

FUFA vice president (finance) Anthony Kimuli however said that they expect to use the money to prepare and transport professional players for the match against Kenya. He added it would not be able to cater for Williamsons’ salary as well.

“We expect long term government support to pay Bobby’s salary otherwise he will go,” Kimuli explained. Cranes will face Kenya on October 9.

MV Kalangala to be refurbished
Thursday, 16th September, 2010
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MARINE VESSEL: The MV Kalangala at Nakiwogo landing site at Entebbe

By Samuel Balagadde
THE MV Kalangala, which stopped operation two months ago and needed an engine overhaul, will soon be refurbished.

Mantrac Uganda will refurbish the vessel which plies Nakiwogo-Lutoboka to Kalangala and is the main means of transport to the islands.

SME training to boost the economy
Thursday, 16th September, 2010
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By David Ssempijja
SUPPORTING the development of Small and Medium Enterprises (SMEs) should be taken into account if the country is to boost the purchasing power of the population, economists have noted.

“The middle class will create a trickle-down effect by providing a market for the people running business in the informal sector,” Mustapha Mugisa, the executive officer at Summit Business Consultancy, said recently.

He was speaking to journalists at a press conference held at the Imperial Royale Hotel in Kampala on Tuesday.

The conference precedes an upcoming seminar on SME, the first of its kind, which will take place this month at the hotel.

The workshop aims to empowering small and medium-sized businesses with practical skills for success.

“Given the fact that small and medium businesses account for about 90% of all companies in Uganda, it is necessary to mobilise and empower these businesses with practical strategies and skill to enable them succeed,” Mustapha said.

Mugisa noted that efforts geared towards salvaging the country out of poverty need to involve the financial sector so that it tailors products in line with the operations of SME businesses.

Currently, an estimated 80% of all SMEs are located in urban areas with only 20% in the countryside where most of the people reside.

Their contribution to GDP is at 75%, employing approximately 2.5 million people in various occupations like retail trade, basic food processing and services.

The workshop is organised with support from the Vision media group, dfcu Bank, UBC TV, Stanbic Bank and the Uganda National Roads Authority.

Vision turnover surges to sh50b
Thursday, 16th September, 2010
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By Sylvia Juuko
THE Vision Group posted a 15.6% increase in turnover to sh50b in the year ending June 2010, from sh43b the previous year, the company’s audited results show.

“It has been an exciting year because we have managed to finish planned investments in time and on budget. We have started realising the benefits on these investments as reflected by the 15.6% growth in turnover compared to the previous year,” the statement issued yesterday said.

The results show that all revenue centres improved.
Circulation revenue surged 10%, while commercial printing revenue rose by 17%.

Because of high operational costs arising from running new media outlets, the firm’s profit margin fell to sh734.7m from sh2.1b last year.

Robert Kabushenga, the chief executive officer, said the company’s profit margin was affected by disposing of the old printing press to the highest bidder whose price was below book-value.

He added that the costs of running the new radio and TV stations, increases in fuel prices and additional depreciation and overheads on the new investments contributed to the increase in administrative expenses.

“We raised money to undertake an expansion programme and those investments have come with costs, and yet, they have not started generating revenue to cover the costs.

The investments have shown signs of growth, so profitability will improve in the coming years.”
Kabushenga has a positive outlook of the company’s performance given the anticipated buoyancy of the economy.

“Uganda’s economy and that of East Africa will grow, and demand is expected to increase, therefore, fueling competition.

With competition in an economy, advertising is a place where this competition plays out and New Vision has the capacity to respond to those business opportunities.”

Meanwhile, the directors have proposed a payment of sh15 dividend per share.

u.g boy

September 17th, 2010, 05:33 PM

u.g boy

September 19th, 2010, 03:53 PM

Mbale praises bosses on litter
RESIDENTS of Industrial Division in Mbale municipality have hailed the division authorities for introducing trucks that collect garbage from their residences.

According to Kevin Nandudu of Maluku estates, residents used to send their children at night to throw litter on the streets. She said the trucks collect the garbage once a week. Residents pay between sh200 and sh500 per garbage heap collected.

u.g boy

September 20th, 2010, 07:14 PM

Govt plans national communication strategy
Sunday, 19th September, 2010
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By Joel Ogwang

THE Government is in the final stages of developing a national communications strategy to streamline the flow of information among state organs as well as harmonise the media role in sensitising the public on matters of public interest, the information and national guidance minister, Kabakumba Matsiko, has said.

The minister noted that there has not been a coordinated channel responsible for the flow of information from the Government to the public.

“But we (Cabinet) are developing one. It will be out soon,” Kabakumba said at the launch of the Rural Financial Services Programme’s communication strategy at Hotel Africana in Kampala on Thursday.

Article 41 of the Constitution empowers Ugandans to have access to information, especially from the state.

However, this is still limited since the media, in its quest to execute its traditional watchdog role, faces harassment, torture and concealment of information from the Government.

Microfinance state minister Ruth Nankabirwa noted that the communication strategy would go a long way in disseminating information about cooperatives.

“The Government ought to have a national communication strategy, but we don’t have it. This is why most Ugandans suffer from poverty of knowledge. Policies are passed, but not communicated,” she said.

Construction of Luwero fruit plant stalls
Sunday, 19th September, 2010
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By Frederick Kiwanuka

A five-acre plot of land worth sh115m, which the Government bought for the construction of a fruit processing plant in Luwero, is lying idle due to confusion among the implementers.

The confusion came after the Austrian co-investor, Prisch Karl-Eine, who was supposed to contribute 30% of the project cost, pulled out of the joint venture. The Government also failed to fulfil its part.

President Museveni had ordered that the project be funded under the National Agriculture Advisory Services (NAADS) in 2008.

The Uganda Government on February 5, 2009 signed a memorandum of understanding with Nature Uganda Co-operative Society Limited (NUCSL), a cooperative entity under the Kasana-Luwero Catholic Diocese, to set up the joint venture.

Under the joint venture, the Government, through the finance ministry, was to contribute 400,000 euros (70% of project total cost), while NUCSL and the Austrian investor would provide 177,980 euros (30%).
However, NUCSL later said it was unable to raise the 30% after the Karl-Eine, with whom they had formed the cooperative entity, pulled out.

According to a follow up report by a team deployed to monitor the progress of the project, the Government paid sh115.2m in February 2009. It was used to buy a five-acre plot of land in Luwero town.

The team noted that after using the sh115m, NUCSL requisitioned for the second and final installment of sh588m, which the finance ministry has not honoured to date.

The team observed that the impasse was partly caused by failure to harmonise information between the agriculture ministry, which is supposed to supervise the implementation of the project, and that of finance, which is supposed to fund the project.

Kasese coffee farmers join to form 250 groups
Sunday, 19th September, 2010
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VISIT: Mumbere receiving coffee packets made by Good African Coffee from Jimmy Baluku, the Uganda Coffee Development Authority Rwenzori region coordinator, at his palace in Kasese municipality

By Michael Karugaba

A total of 14,000 Arabic coffee farmers in Kasese district have formed into 250 groups with an aim of improving their farming methods and boosting incomes.

Idrisa Sendagire, the Kasese branch manager of Good African Coffee, said his company helped the farmers form the groups.

Sendagire and other employees had paid a courtesy call to the Rwenzururu king, Charles Mumbere, at his Buhikira palace in Kasese last week.

Sendagire said the group would soon sell their coffee in European markets.
Mumbere thanked the company for promoting coffee farming in the Rwenzori region and for saving farmers from exploitation by middlemen.

The firm buys and processes Arabica coffee in Rwenzori region and eastern districts.

Agric sector needs sh545b for growth
Sunday, 19th September, 2010
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By Ronald Kalyango

UGANDA’s agricultural sector requires sh545b annually to fund its newly-formulated Development Strategy and Investment Plan, the agriculture minister, Hope Mwesigye has said.

The strategy which aims at increasing agriculture growth to 6% from the current 2.6% will cost sh2.49 trillion at the end of the five-year journey.

“The financial gap needs to be filled with extra resources beyond those available in the medium-term expenditure framework if the plan is to be effectively implemented,” Mwesigye said.

The programme was developed in line with the objectives of the National Development Plan and guided by the principles of the comprehensive Africa Agriculture Development Programme and was approved by the Cabinet in March.

The programme commenced implementation in July.

Mwesigye said the Government had made available an average of sh409b annually leaving a finance gap of sh136b.

The agriculture minister was speaking at at a high level businsess meeting held at the Imperial Royale Hotel in Kampala recently.

The Plan for Modernisation of Agriculture,director, Godfrey Bahiigwa, said the meeting was organised to mobilise resources for funding the gaps in the strategy’s budget.

“We expect donors to make commitments towards funding the programme, we have already started its implementation though we need extra resources,” Bahiigwa said.

To achieve the growth, the bulk of the funds (64.6%) will go to enhancing production and productivity while improving market access is expected to be allocated 23.7% of the resources.

Creating an enabling environment for the sector will take 7.3%, while the budget and institutional strengthening will be allocated 3.9%.

When the resources are made available, the largest investment area will be advisory services at 28.4% of the total investment plan budget.

The next biggest areas will be promoting value addition at 22%, technology development and research will be allocated 10.4% while pest, vector and disease control at 7.3%.

Capacity for quality assurance and regulation will get 5.9% and water for agricultural production will get 4.8%) of the budget.

In a statement read by Jerry Lanier, the US ambassador to Uganda, donor community expressed the commitment towards funding the agricultural sector.

“Development partners strongly support the Government’s effort to improve management, accountability and value for money in the delivery of agricultural services to farmers,” indicated the statement.

u.g boy

September 21st, 2010, 05:44 PM

Kasubi tombs reconstruction to be completed by 2012
Monday, 20th September, 2010
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By Pascal Kwesiga

THE reconstruction of Kasubi tombs, which were destroyed by fire on March 16, will be completed in 2012, the Government has disclosed.

Addressing a press briefing at the Media Centre in Kampala yesterday, Gabriel Opio, the Minister of Gender, Labour and Social Development, said the Government will ensure that the new site is inaugurated on March 16, 2012.

“It is our expectation that the site will be inaugurated on March 16, 2012, the same date it was destroyed,” Opio read from a statement.

Opio, who is also the chairperson of a Cabinet committee that was appointed by President Yoweri Museveni to probe the cause of the fire, added that the project is estimated to cost over sh2b.

The project, he said, was being handled through a tripartite agreement between the Buganda Kingdom, central government and UNESCO.

The minister, who led a team of the kingdom and Government officials on a trip to Brazil to attend the world heritage committee in July, said Uganda had received overwhelming support from the international community to reconstruct the tombs.

He said the judicial commission of inquiry, which was appointed to investigate the fire, could not commence work because one of its member, Godfrey Lule, had been sick.

Opio said Damiano Lubega, who has been fronted by Mengo to replace Lule, will be sworn in together with the legal team today at the High Court library.

“We are ready to begin investigations once the team is sworn in. We want an independent inquiry,” he said.

Tony Kaggwa, Buganda’s lands minister, who is also the chairman of the technical and building committee of the tombs, said they had so far collected sh500m from the kingdom royalists and well-wishers to reconstruct the tombs, which were declared a world heritage site by UNESCO in 2001.

“More money is still coming in from within and outside the kingdom,” Kaggwa said.

The money, he said, is being deposited on the kingdom’s bank account that is managed by Pricewaterhousecoopers.

Kaggwa, however, said it was not yet clear when the reconstruction will begin, although works on other structures in the complex had began.

“We thank the Government for its cooperation and we hope its efforts will not be wasted,” Kaggwa added.

The tombs contain the royal tombs of Mutesa I, Mwanga, Daudi Chwa and Frederick Edward Muteesa II, the father of Kabaka Ronald Muwenda Mutebi.

The royal site was built in 1882 and converted into a mausoleum in 1884 by Muteesa II.

New health centre excites residents
Monday, 20th September, 2010
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By Gillian Lamunu

RESIDENTS of Lela Obaro parish in Bobi sub-county in Gulu district danced in joy as foreign affairs state minister Henry Okello Oryem commissioned a health centre in the area on Thursday.

The development marked an end to the residents’ routine 10-kilometre walk to Bobi health centre for treatment.

The health centre, with a fully equipped outpatients department, maternity and staff quarters connected to solar power, has a capacity of 2,000 patients. It has been constructed with funds from the MTN foundation and Stanbic Bank.

Denis Okullu, a resident, said prior to the construction, health workers attended to patients under trees.

“If rain got you in the hospital premises, it would soak you because there were no houses,” he said.

The health centre boss, Mary Amito, said the facility serves 4,000 and has attended to 56 pregnant mothers since July.

She said because of the overwhelming number of patients, they had been forced to treat patients even at night with poor lighting in the wards.

“We are forced to charge our patients some fees to buy paraffin for lighting and they think that we are corrupt,” Amito said.

She added that the health centre sometimes fails to get drugs from Bobi in time due to poor means of transport.

Okello Oryem told the residents to look after the health centre well to ensure that it lasts long.

MTN boss Themba Khumalo said they would get a generator for the health centre, while Stanbic bank’s John Okullu said they would buy more solar panels for the health centre.

Government rehabilitates Tororo airstrip
Monday, 20th September, 2010
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By Moses Nampala

THE rehabilitation of an airstrip in Tororo municipality, estimated at over sh2b, is almost complete. The facility has not been operational for 32 years.

The new development has generated excitement among the business community.

The Government contracted Dasawihi Construction firm to do the work on the facility off the Tororo-Busia road.

The works done include putting gravel on the runway and parking yard, fixing murram and runway marks, and working on the drainage system, said Dasawihi engineer Charles Ojok

Primary schools clean up Jinja town
Monday, 20th September, 2010
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Pupils of Magwa Primary School sweeping Main Street in Jinja on Saturday as part of the World Tourism Day activities

By Donald Kiirya

FIVE primary schools, in partnership with various companies, on Saturday cleaned the streets in Jinja town in preparation for the World Tourism Day celebrations.

The schools were Magwa, Main Street, Spire Road, Kiira and Victoria Nile.
“Since we are agitating for a city status for Jinja, we must keep it clean. I request the public to learn from us to clean their homes,” said Isaac Mayinja, a P5 pupil of Victoria Nile.

Steven Ssanga, a P6 pupil at Spire Road, said the initiative would play a role in attracting more tourists, thus increasing revenue collection.

Blessing Aikoru, a P4 pupil of Magwa, said: “I felt good after being selected as one of those to be part of the cleaning exercise because I feel saddened to see rubbish on the sides of the roads.”
She encouraged residents to have dustbins in their homes.

Main Street, Radio Road, Nizam, Kutch, Gokhale and Clive roads benefitted from the exercise. The companies painted two Zebra crossings on Gokhale Road and Clive Road West.

Simon Kayita, the tourism officer in Jinja district, said World Tourism Day will be celebrated on September 27 in Jinja district.

He said lots of events will be organised starting on September 25 like planting of trees at the Source of the Nile, playing golf, white-water rafting, quad biking, bungee jumping, horse riding and trekking on Speke’s route.

Safie Ali, the information officer of the Uganda Tourism Board, said a mini zoo would also be set up for children.

Tororo to get 230MW power plant
Monday, 20th September, 2010
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By Ibrahim Kasita

A Mauritius-based power firm, Albatross Energy, has applied for permit to build a 230MW heavy-fuel oil plant in Tororo, underscoring the increased investment appetite in the energy industry.

The firm intends to build, own and operate the plant.

“The power generated will be sold to the national grid,” the Electricity Regulatory Authority (ERA), said.

Albatross’ interest comes at a time when investor enthusiasm has increased due to the high demand for power owing to the robust economic growth.

To ensure competitiveness in the energy sector, licensing procedures were improved and streamlined. This simplified compliance requirements and the regulatory incentives aimed at attracting more investments, ERA said.

However, the turn-around has caused another challenge of transmitting the power from the source of generation to the national grid as the transmission lines need capacity upgrade.

“There is a need to upgrade the transmission lines so that we are able to transmit addition power. This is because the existing lines are overloaded and need rehabilitation,” Eng. William Kiryahika, the Uganda Electricity Transmission Company, said.

“It requires a long-term investment, which will take about three to four years, yet the Albatross project is needed now.” ERA agreed that there was a need to upgrade the existing transmission system between Tororo and Kampala in order to transfer the Tororo power.

“The firm has subsequently proposed to implement the project in two phases. It will start with 100MW and add on 130MW when the transmission system is upgraded,” the regulator said.

Uganda produces about 540MW from the Nalubaale and Kiira dams and a host of thermal and renewable power plants countrywide, ranging from mini-hydros to sugarcane co-generation facilities.

In the previous year, 10 power projects were licensed, commissioned.

Four more projects are under construction and two licensed, but yet to begin construction. Other 23 permits have been issued for feasibility studies.

Energy experts have, however, expressed concern over the old transmission lines.

“We will have a lot of electricity that we will not be able to consume because the old lines won’t be able to take to the consumers, hence making such ventures expensive,” they argued.

This will become expensive as we shall continue to pay for the plants,” explained analyst in the energy industry.

“Instead, we should be replacing the diesel-powered generators with cheaper power to ensure that electricity tariffs are affordable to all people including the rural folks.”

However, with more power generation plants in Uganda, this call for the East African states –Uganda, Kenya, Tanzania, Rwanda and Burundi –to move quickly to integrate their power system.

Bharti, IBM partner on IT infrastructure
Monday, 20th September, 2010
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By David Mugabe

BHARTI Airtel has partnered with IBM to manage the computing technology and services that power Bharti Airtel’s mobile communications network spanning 16 African countries.

Bharti recently acquired Zain Africa operations, including Zain Uganda at over $10b.

A statement from the Asian telecom giant said an agreement would be finalised by the end of the year in which IBM will deploy advanced technologies, including the spoken web, a voice-enabled Internet technology that allows users to access and share information simply by talking over an existing telephone.

Analysts say Bharti would rely on the economies of large-scale partnerships with giants like IBM to introduce solutions that should tilt pricing models in their favour, and thus lowering the barrier to entry for Africans to own a mobile device.

“This is particularly compelling for populations with little or no literacy, visual impairments, or which lack access to PCs,” read the statement
Since 2004, Bharti Airtel subscribers have grown from six million to 150 million today.

The statement quotes a Deloitte report commissioned by the mobile communications industry association, GSMA, indicating that only 40 out of every 100 Africans have mobile phones.

“However, demand is growing at an average rate of 25% annually, and a 10% rise in mobile penetration could increase gross domestic product by 1.2% in developing markets.

Sunil Bharti Mittal, the Bharti Airtel chairman and managing director, said: “There are huge opportunities throughout Africa to transform how people communicate and how communities interact. Delivering on that opportunity through affordable mobile communications for everyone is our focus.”

“This transformational business delivery model, which will be a first in Africa’s telecom industry, will bring enhanced efficiencies to our operations and help us deliver world-class mobile services to our customers.

Under the 10-year planned agreement, IBM will consolidate 16 different IT environments across Bharti Airtel’s African operations into an integrated IT system and will oversee the management of all of the applications, data center operations, servers, storage and desktop services.

When the agreement becomes final, IBM will provide customer support applications that include customer relationship management, billing and self-care that will empower customers and assist Bharti Airtel in delivering innovative and convenient 2G and 3G mobile services.

u.g boy

September 22nd, 2010, 09:31 AM

Oil production could boost growth to 10%
Tuesday, 21st September, 2010
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LONDON-Oil production is likely to push Uganda’s economic growth into double figures, but Uganda also needs to look at saving oil revenues for future generations, the country’s deputy Central Bank governor said on Monday.

Uganda, east Africa’s third-largest economy, discovered commercially viable hydrocarbon deposits in the Albertine basin along its western border in 2006 and is due to produce its first barrel of oil in the fourth quarter of 2011.

British oil company Tullow Oil expects Uganda to be producing more than 200,000 barrels per day of crude oil by 2014-2015 and estimates recoverable reserves to be two billion barrels, although some analysts say that figure is conservative.

“I would not rule out growth rates in the range of 9-10% when we are finally exploiting the oil production,” Louis Kasekende said in an interview on the sidelines of a conference in London.

The finance ministry projects economic growth of 6.4% for the fiscal year ending June 2011, before oil production starts.

Sub-Saharan African countries are trying to ensure oil revenues are preserved for future generations, and several, such as Nigeria, Angola and Ghana, are looking at setting up sovereign wealth funds to conserve that oil wealth.

Ghana aims to produce its first barrel of oil this year.

“The issues in Ghana are similar to Uganda. We need to address those issues of savings and investments and how much we put aside for the future,” Kasekende said, adding that Uganda had received help on this topic from the International Monetary Fund and the World Bank.

Uganda had also received technical assistance from Norway, Kasekende said. Norway has a highly transparent sovereign wealth fund.

Speaking about inflation in Uganda, Kasekende said he did not see it rising dramatically. Headline Ugandan inflation hit a six-year low of 1.7% last month and core inflation also eased to 4%.

The inflation rate has tumbled since December when it was 11%, mainly due to improved harvests curbing food price inflation.

UNIDO boosts small businesses
Tuesday, 21st September, 2010
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By Paul Tentena

THE Uganda Investment Authority and the United Nations Industrial Development Organisation have created a platform that will help small-and-medium enterprises access markets worldwide.

The platform, Sub-contracting and Partnership Exchange, is an online database through which SMEs will be profiled and linked to large domestic and multinational companies.

Patrick Bitature, the authority’s chairman, explained that different sectors had been selected for the pilot phase of implementation.

These include the metal processing, metal fabrication, plastics industry and industrial services.

He pointed out that the pilot operation would start in Kampala before spreading out.

Katwe vehicle excites Gulu residents
Tuesday, 21st September, 2010
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INNOVATION: Gulu residents gaze at the ‘locally-manufactured’ vehicle at the Kaunda Grounds in Gulu on Monday. This was during the science and technology exhibition organised by the Uganda National Council of Science and Technology.

The vehicle can grind maize, weld, and generate at least 7KVA of electricity. It can also pump water, be used for transport and acts as mobile workshop, Eng. Moses Samulini of the Katwe Rural Work Vehicle project, said.

He said it took his team 12 years to put the idea together. Samulini appealed to the Government and development partners to give him sh3.2b to set up a micro-manufacturing plant for the vehicles.

Brazilian firm to manage Uganda, Kenya railway network
Tuesday, 21st September, 2010
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NAIROBI-Rift Valley Railways shareholders, who recently signed a new concession agreement, are expected to engage a Brazilian holding company, America Latina Logistica (ALL), in the management of the Kenya-Uganda railway.

By enlisting the largest rail-based independent logistics operator in Latin America, the shareholders are going for a proven operator to solve the technical capacity constraints that bedeviled the initial concessionaire – South Africa’s Sheltam Railways Company.

“They have technical ability and expertise to manage a narrow one-metre gauge railway like the Kenya-Uganda railway and in worse conditions,” a source said.

“They will be seeking technical assistance from people from Brazil, who will provide the expertise on the operation of such a railway system,” transport permanent secretary Dr. Cyrus Njiru said.

The ALL operates a fleet of 1,100 locomotives, 31,000 railcars and 1,000 trucks.

It manages more than 21,000 kilometres in railroads spanning from the central region of Argentina to Brazil’s south, southeast and midwest regions.

Contracting the services of a proven rail operator is among a raft of measures required under the revised concession agreement that Uganda’s Finance Minister Syda Bbumba and Kenya’s Transport minister Amos Kimunya signed in Kampala, recently.

International Finance Corporation, the private sector lending arm of the World Bank, advised the two governments on the concessioning.

Under the agreement, Egyptian firm, Citadel Capital, is the principal shareholder in RVR with 51% stake, Kenya’s private equity investment firm, TransCentury, 34%, while Ugandans hold 15%.

Agencies

The agreement is expected to end boardroom wars pitting Kenyan and Ugandan investors against their Egyptian counterparts in a bid to replace Sheltam, which originally won the 25-year concession to run the 1,200km railway in 2006.

The wrangles peaked when Citadel Capital, the Cairo-based private equity firm, quietly acquired 49 per cent shares of Sheltam, the then majority shareholder in RVR.

“Things could start happening on the ground within 90 days and we expect major improvements in the next 24 months,” Dr Njiru said, “The biggest problem has been capital and this will not be an issue now.”

He pointed out that while in the past Sheltam’s position as the lead concessionaire disadvantaged other shareholders from influencing critical management decisions, the situation has been addressed.

The source intimated that the repair of locomotives is under way and shareholders are buying steel for rehabilitation of the railway line. This is in line with the performance targets envisaged under the agreement.

“Besides meeting financial targets such as investing Sh20 billion ($250 million) to Sh24 billion ($300 million) in equity and debt in five years, we expect to increase capacity such as moving five million tonnes of cargo annually up from about a million tonnes we move presently,” said the source.

With shareholders expected to contribute about one third of the finances, the agreement is expected to unlock more capital injection from six international lenders

u.g boy

September 23rd, 2010, 05:23 PM

Warid Telecom cuts call rates by half
Wednesday, 22nd September, 2010
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According to figures from Uganda Communications Commission (UCC) for August 2010, Zain has an equal call rate of sh300 for calls from Zain to other networks between 8:00pm and midnight.

Orange has one of the lowest calls within its network at just sh290 all day but charges a fixed sh320 for calls from Orange to all the other networks all day.

Warid chief executive officer Madhur Taneja said the 50% slash from the previous sh10 is a move to break the barrier, which had proved to be expensive to mobile users in Uganda.

“We are going to show our determination to bring down the prices and we are convinced that affordability is the way to go,” said Taneja.

The announcement effectively sparks off the tariff wars again in a sector that had opted for innovative products that wooed customers but with little overall change on the call rates.

UCC figures also indicate that standards profile peak time calls from MTN to other networks are highest at sh500 followed UTL at sh440, while calls to MTN is one of the lowest between 8:00pm to midnight at just sh285. Zain charges the highest off peak at sh300 for calls within the same network.

“It is true, mobile users have been facing a higher tariff for connecting and this makes talking among networks expensive, effectively building barriers to communicate,” said Taneja.

On the implication for this tariff structure for the industry, Zain Uganda country boss Yesse Oenga was reluctant to comment.

“It is good for the customer but it is their promotion, I comment for Zain,” said Yesse.

MTN chief marketing officer Isaac Nsereko’s said the customer still gets more value from MTN Zone, a percentage tariff structure that was launched over two years ago.

“Their tariff offnetwork is slightly better than ours but the customer still gets more value with MTN,” said Nsereko.

While there are currently seven players in the market, there are five key dominant players with MTN as the market leader. The others are Zain, Orange, UTL, Warid, I-Telecom and Smile Telecom.

The presence of the seven players has not had a significant impact on the tariffs structure with analysts attributing this to the high interconnection rate that stands at sh131.

Interconnection fee is the amount an operator pays another for routing traffic through their networks. The high interconnection rate means customers have to pay more for calls to other networks.

Kenya recently slashed its interconnection rate by half and is targeting to drop it further to about sh28.

Kuwait gives Uganda sh37b aid
Wednesday, 22nd September, 2010
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Bbumba (right) giving Al-Waqanyan a present at the finance ministry office yesterday

By Raymond Baguma
and Pascal Kwesiga

KUWAIT has approved a $10m (about sh22b) loan to Uganda Development Bank to support small and medium enterprises and a another $7m grant (over sh15b) for food security operations.

Finance minister Syda Bbumba and Hesham Ebraheem Al-Waqanyan, the deputy director of the Kuwait Fund for Arab Economic Development (KFAED), signed the agreements in Kampala yesterday.

Uganda will repay the money to KFAED over 25 years at an interest of 2% with a five-year grace period.

Al-Waqanyan suggested that the money be channelled to projects that aim at creating jobs to address unemployment, which is affecting many African countries.

He said Kuwait would support Uganda in the transport sector and poverty alleviation to enable the country meet the Millennium Development Goals.
Investment state minister Aston Kajara urged KFAED to attract Arab investors to Uganda.

He noted that $800b was raised last year from foreign investments.
Kajara said the investment opportunities in Uganda currently exist in commercial farming.

FAED has financed various development projects in Uganda worth $150m since 1990.

Busabala road works start
Wednesday, 22nd September, 2010
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at last: Ongoing roads works on the Busabala-Najjanankumbi road

By Juliet Lukwago

UPGRADING of the Busabala-Najanankumbi road in Wakiso has started. Isaac Matovu, the Uganda National Roads Authority project supervisor, said the construction, estimated to cost sh1.3b, would be completed in six months.

In August last year, the Wakiso district LC5 chairman, Ian Kyeyune, was humiliated by bitter residents because of the poor state of the road.

Kyeyune was made to walk for almost half the entire stretch of the road as rowdy youth poured dust on him.

Matovu explained that the 11km road project starts at Najjanankumbi, off Entebbe Road, and ends at Kaazi on the way Lake Victoria.

Only two kilometres of the road is tarmacked, under the Kampala local government.

NIPPON Parts Uganda is undertaking the road works

Was there value for money on the sh7b Kampala- Jinja road rehabilitation?
Wednesday, 22nd September, 2010
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A truck goes past an island installed along the new Namanve road

By Vision Reporter

IN Seeta and Namanve, Johnson Muyanja, the mayor of Mukono town, wonders why ‘islands’, a design that separates road users from opposite directions, were installed. “The road has been narrowed. Vehicles from opposite directions have to follow one fold,” he says.

Like Muyanja, concerns have been raised about the quality of the Kampala- Jinja highway after the repair of black spots. The highway is one of the most fatal, with at least three road carnages reported weekly and 15 accident-prone spots, ‘black spots’.

In 2007, the Road Agency Formation Unit contracted Multiplex and Omega to rehabilitate black-spots on the highway. The firms were to fill potholes, dig drainages, install zebra crossings, erect sign posts and build pedestrian pathways at spots in Namanve, Namawojjolo, Mbalala, Namagunga, Kitigoma, Najjembe and Mabira.

“We rejected Multiplex’s work on the spots because it didn’t meet the required standards,” Dan Alinange, the Uganda National Roads Authority (UNRA) publicist, said.

Consequently, the two firms were ordered to re-do. “By contract, the ministry doesn’t approve sub-standard work. The contractor bore the burden of the extra work,” Alinange said.

In defense, an employee of Multiplex who preferred anonymity, says the November 2007 CHOGM summit affected works on the road. “We were hired to work on some Kampala roads,” he says. “It wasn’t easy working on the two tasks concurrently.”

According to Moses Bbosa, the Multiplex boss, the final job is perfect.

“We did our work according to the specifications UNRA gave us,” he says. “But our roads are too old yet require regular maintenance to last longer.”

Alinange says ‘islands’ were installed where head-on collisions were widespread. “This has reduced at Namanve.”

Peter Ssebanakitta, the UNRA executive director, says there is a misconception on the workload Multiplex was to do. “We contracted them to do only seven of the 15 black spots.”

“Some spots were not satisfactorily done,” says Ssebanakitta. “But on the whole, Multiplex did a good job,” he says. “We paid them for 90% of the work.”

u.g boy

September 24th, 2010, 10:11 AM

ADB to rebuild Masaka market
Thursday, 23rd September, 2010
http://www.newvision.co.ug/NP/1285263061zulu.jpg
Vendors selling their merchandise in Masaka market

By Ali Mambule
MASAKA Municipal Council has received sh3b from the African Development Bank (ADB) to upgrade the municipal central market.

The mayor, Charles Kasibante, told New Vision that construction of the market is scheduled to begin on September 29 and will take 18 months.

He said the funds will be channelled through the central government.
Kasibante said the vendors currently operate in the middle of the road, especially on Fridays, the official market day.

Kasibante explained that after completion, the three-storied structure will accommodate 4,500 vendors.

“We have about 400 permanent vendors in the market, but there are many more temporary ones who operate in the same market only on Fridays. We hope that when construction works are completed, they will hire stalls,” Kasibante said.

He, however, expressed fear that construction work was likely to delay because officials from the local government ministry had delayed to release the market plan for the vendors to approve.

“The new market will have a health unit, latrines and other facilities. The vendors have to look at the plan and decide whether they agree with it,” Kasibante said.

The market will be constructed under the Market and Agriculture Trade Improvement Programme, but the vendors will supervise the work, according to Kasibante.

He added that a temporary market had been set up near the new taxi park to allow construction work.

“We are eagerly waiting for this market to be constructed to a better standard,” Moses Mwanje, a vendor, said.
However, some vendors disagreed with the municipality over where the temporary market should be located.

They claimed that it will be unfair to relocate them near the new taxi park which is far from the new market will.

“Do the municipal council officials expect our customers to move down to the new taxi park to look for tomatoes?” Aisha Nakiganda, another vendor, asked.

The vendors want the council to allow them to temporarily use Masaka Children’s Park, but Kasibante rejected the proposal, saying the park is too small to accommodate them. It lacks the necessary facilities like latrines.

He disclosed that ADB would also facilitate the reconstruction of Nyendo Market, also in Masaka municipality at sh3b.

Kampala to get 120 new Police posts
Thursday, 23rd September, 2010
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By Patrick Jaramogi

THE Police have elevated 13 Police outposts into Police stations to boost security in the Kampala Metropolitan area.

The Kampala deputy Police spokesperson, Vincent Sekatte, named Ntinda, Kisugu, Lungujja, Natete, Nsangi, Kawaala, Ggaba, Seeta and Kyambogo as the new Police stations.
Others are Kitintale, Lubowa, Kakiri and Makerere University. He said the renovation of Natete Police Station is underway.

Sekatte said Jinja Road, Old Kampala, Wandegeya, Kawempe, Kira Road, Kiira, Kajjansi, Wakiso, Mukono, Kabalagala, Katwe, Central Police Station and Entebbe are Police divisional headquarters.

“We are planning to construct a community Police post in each of the 120 parishes in Kampala,” Sekatte disclosed.

He said the Police posts will each have 30 Police officers, four standby motorcycles, a computer with Internet, a recreation hall and a database.
“The database will show residential plot numbers, telephone contacts and the occupants of houses for easy monitoring,” Sekatte explained.

Without giving details, he said the cost of the project would be shared by the Police and the community.

Sekatte said community Police posts would also be set up in Sembabule and Kiruhura districts.

Maize output to increase by 11 percent
Thursday, 23rd September, 2010
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KAMPALA - Uganda’s 2010 maize crop is expected to expand by 11% due to favourable weather and widening use of high-yielding seeds, a top government official told Reuters on Wednesday.

Opolot Okasai, the commissioner for crop resources in the agriculture ministry, said Uganda would produce an estimated two million tonnes of maize this year, up from 1.8 million tonnes last year.

Although traditionally a peripheral commodity in Uganda, over the last few years maize production has soared and demand for the cereal leapt from the east African country’s neighbours of Southern Sudan, the Democratic Republic of Congo and Kenya.

Uganda’s domestic corn consumption stands at an estimated 1.1 million tonnes.

“We distributed enormous amounts of good quality high-yielding seeds last year and fortunately weather was fairly good and the result was the bumper harvest that we saw,” he said.

“A significant portion of those seeds that we distributed were carried over and planted this year and since January the weather so far has been encouraging and these two factors will certainly push us to two million metric tonnes.”

In 2009, Uganda experienced a scorching drought mid,year that significantly cut back output in most other crops, including coffee for which the country is Africa’s largest exporter.

Rains were plentiful though in the latter part of the year when much of the maize crop is produced.

Uganda recorded its best ever maize harvest in 2009, but farmers’ elation over their rich harvest was tempered by a steep drop in prices as traders flooded the market with supplies.

Okasai said the low prices were unlikely to cool farmer enthusiasm this year because of growing regional markets.

Ugandan airspace now competitive
Thursday, 23rd September, 2010
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By Ibrahim Kasita

UGANDA'S airspace has become competitive, calling for operators to devise innovative and creative strategies that meet customers’ satisfaction as well make profits.

“We always welcome competition in this or any market. Competition is healthy. We are currently studying expansion plans for Uganda,” Jabr Al-Azeeby, the Emirates Airlines area manager, said.

This comes at a time when there has been increased number of airlines operating at the Entebbe International Airport.

The airport is increasingly developing to one of the top safari holiday and investment destinations in the world.
Al-Azeeby said Emirates has been in Uganda for 10 years, and it started out with a medium range aircraft but now operates Boeing 777-300ER aircraft fitted with eight private suites in First Class, 42 flat beds in Business Class and 304 comfortable Economy Class seats.

“Emirates’ robust business model and commitment has allowed the airline to adapt during adverse conditions,” Al-Azeeby said.

Last year, the operator continued to post profits against a backdrop of the global economic recession as profits increased by $1.1b for the financial year ended March, 2010.

“At Emirates, we strive to be the best and are known for being an innovator in the airline industry,” Al-Azeeby said.

“In addition, we have our network of over 100 destinations in 62 countries across six continents, award-winning customer service and in-flight entertainment, and one of the youngest fleets in the skies.”

Emirates Airlines has ordered 32 new A380 Airbus on top of the previous 38, bringing the total to 90 passenger airbuses.

“This affirms Emirates’ strategy to become a world leading carrier and to further establish Dubai as a central gateway to worldwide air travel,” Al-Azeeby said.

“The A380 is our flagship in terms of passenger comfort, innovation, operating and environmental efficiency and revenue generation.

“Emirates is the world’s largest 777 operator with a fleet of 91 777s currently in service. With this, we are well on our way to building our fleet of the future,” the area manager added.

World trade rises by 20% - WTO
Thursday, 23rd September, 2010
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By David Mugabe

THE value of world merchandise trade rose by 25% in the first six months of 2010, the World Trade Organisation (WTO) latest statistics indicate.

Exports from Africa and the Middle East were 35% higher than in the corresponding period of 2009, fuelled by demand in Asia and the US, and higher commodity prices.

“This surge in trade growth marks a continuation of the trend begun in the first quarter of the year,” read a statement posted by WTO this month.

The value of world merchandise trade was around 25% higher in the first three months of 2010 than in the same period of 2009, according to WTO’s figures released in June.

The highest price changes in the last quarter were in metals and crude petroleum, while the lowest were in food and beverages.

Changes in foods and beverages were also lowest in the previous quarter.
According to figures, world merchandise exports increased by 7% in the second quarter of 2010 in comparison with the first quarter.

Available monthly statistics for 70 economies representing 90% of world trade show that merchandise trade declined in April and May 2010, but rose again in June.

Asian exports and imports both rose by more than 35% in the second quarter of 2010, compared to the corresponding period of 2009.

The Commonwealth of Independent States (former members of the Soviet Union), posted a buoyant 44% export growth.

Similarly, extra-EU trade (external trade between the EU and the rest of the world) was more dynamic than trade within the EU.

Cocoa earnings overtake cotton
Thursday, 23rd September, 2010
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By John Kasozi

COCOA bean exports have overtaken cotton in earnings for the last two financial years, according to the Uganda Export Promotion Board (UEPB) and the Cocoa Development Organisation figures.

“This has been possible because of an increase in land under cocoa every year and the current farm gate prices of sh4,500 for conventional cocoa and sh5,500 for organic,” said John Musisi, the coordinator of the Support for Tea and Cocoa Seedlings project.

Musisi explained that during the past two years, cocoa exports amounted to over 26,000 metric tonnes, earning Uganda over sh148b.

UEPB said cotton export figures stood at over 25,000 metric tonnes, fetching the country over sh80b during the period.

“It is projected that Uganda will export 15,000 metric tonnes of cocoa beans worth sh99b this year,” Musisi said.

The total land area suitable for cocoa growing in Uganda is 92,000 hectares but only 21,698 hectares are planted. There are 12,290 hectares of young cocoa planted between 2001/2002 and 2009/2010 under the Strategic Exports Interventions Programme at different stages of maturity and production.

Bundibugyo district produces 70% of all cocoa grown in Uganda. Other growing areas are Mukono, Mayuge, Hoima, Iganga, Kamuli, Wakiso, Mpigi, Luweero, Kiboga, Mubende, Masindi, Kibaale and Kamwenge.

Musisi noted that his organisation’s target was to plant another 35,000 hectares of cocoa seedlings in the next five years to hit the 50,000 metric tonne mark.

This would fetch $150m by 2015 at the estimated world market price of $3,000 per metric tonne.

“We face a number of challenges like low production volumes to attract substantial investments into value addition.

“We have struggled in the last seven years due to limited investors,” he said.
into the industry are limited.

hakz2007

September 27th, 2010, 10:13 AM

Uganda crafts get to UK supermarkets
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Bitature (right), chats with a mobile money customer during the launch

THE TJX supermarket chain in the UK has ordered for 1,000 products of crafts and arts, worth $500,000 (about sh1.1b) from Uganda.

This is under the ‘Handicrafts Development and Supermarket Linkage’ programme coordinated by the Ministry of Trade and Industry and the Uganda Export Promotion Board.http://www.newvision.co.ug/D/8/220/733142

Multi-purpose walking tractors to boost rural farmers
WELT Machinen Engineering, a local company has introduced a multi-purpose walking tractor. The VARI mini-tractor with accessories including a double-sided plough, a drum mower, rotary tiller, tiling trailer and an irrigation facility, was launched last week in Kampala.

Felix Apo-Oroma, the managing director, was optimistic the tractor would replace oxen and ox-ploughs as the preferred technology for small scale farmers.
He said Welt was working with BIGA International that has successfully operated in several African countries.

The tractor powered by a 6.5 Honda engine can be used all-year round from land preparation, crop caring, maintenance and management, harvesting and post harvest activities such as maize milling, cassava chips processing, Apo-Oroma said.

Prof. Apolo Nsibambi, the premier, said in a speech that the introduction of the tractor was in line with the Government’s Prosperity-for-All programme.

He said the Government would support the technology to ensure enhanced agricultural production.

it as one of the ways to ensure enhanced agricultural production,” he said in a statement read by the acting director for coordination and monitoring in the Office of the Prime Minister, Ssansa Mugenyi. http://www.newvision.co.ug/D/8/220/733138

North leads in SACCO defaulters
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VICTORS: Tugume emphasises a point to the press on Friday

THE government has halted the pre-shipment road worthiness inspection scheme on imported used cars initiated by the Uganda National Bureau of Standards (UNBS).

The suspension, which takes immediate effect, comes in the wake of a directive from the finance minister Syda Bumba to the Uganda Revenue Authority chief and UNBS management.

“It is great news that the Government has finally done away with the archaic and antagonistic policy.

“We applaud the Government. The law was greatly undermining our competitiveness in the East African Community contrary to the Government’s vision of building a competitive Ugandan private sector,” Nelson Tugume, the National Chairman of Uganda Motor Vehicle Importers and Dealers Association, told reporters on Friday.

Tugume said they were subjected to the highest cost paid anywhere in the world for a road worthiness certificate of a used car.

He said importers paid over $390 (over sh800,000) as inspection fee per car, including $150 to transport it to the inspection venue compared to $25 charged by Tanzania for the same service.

“The abnormal high cost of inspection has discouraged us from trading in used cars and URA is feeling the pinch in form of reduced revenue.

“For instance, we were paying up to $90m per year in taxes on used vehicles but since the scheme was introduced, monthly collections on imports of used cars reduced to less than $4m per,” he noted.

He explained that by inspecting vehicles in Japan, UNBS was denying about 200 skilled Ugandans access to direct jobs that would be created by having the internal inspection points within Uganda.

He said with the new developments, the price of used imported cars would reduce.

“For the 5,000 units (cars) that we import every month at the rate of $295 each, we were giving away $1.475m per month or $17.7m per year to a Japanese private firm.

“Such massive and unnecessary outflows are a threat to our impressive macro-economic management that made Uganda the only country in the East African region not to run to the International Monetary Fund for funding during the global economic meltdown,” Tugume argued.http://www.newvision.co.ug/D/8/220/733137

u.g boy

September 27th, 2010, 05:17 PM

Scientists want own ministry
Sunday, 26th September, 2010
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Dhizaala addressing scientists during a dialogue at Acholi Inn

By Chris Ocowun

SCIENTISTS in Uganda are calling for the creation of a separate ministry to the development enhance science and technology.

The request was made during a discussion by science and technology professors on the challenges hindering the development of science, technology and innovation in Uganda at Acholi Inn in Gulu on Friday.

The participants also noted that a separate ministry would help lobby for more funding to promote science and technology.

The faculty of science dean at Gulu University, Prof. Onen Okello, argued that the Government needed to invest more in training scientists, citing Brazil, where about 10,00 scientists are trained by the government every year.

Brar Sukhdeep, an education specialist with the World Bank in Kampala, dismissed claims by some scientists that donors are not interested in funding science and technology in the country.

Addressing journalists, however, the research, innovation, monitoring and evaluation boss at the National Planning Authority, Moses Sanon Dhizaala, said the Cabinet had already endorsed the creation of a ministry to promote science and technology in Uganda.

Dhizaala said the Government needs sh1.4 trillion to build the capacity of the existing industries to manufacture goods and services and another sh400m for science and technological infrastructure.

He noted that for four months, starting in October, the National Planning Authority will be carrying out a survey of the human resource in Uganda.

Dhizaala added that they had requested for sh11b to carry out the survey, which will also include Ugandans in the Diaspora.

She said it was upon the Government to prioritize science and technology so that donors can fund it.

At total of 10 computers, two lap tops and assorted science textbooks were given to seven winning students in this year’s young scientists innovative competition held at Gulu University.

Busia town gets library
Sunday, 26th September, 2010
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Mulindwa explaining a point to ministers Kivejinja (right) and Gabriel Opio (next to him) at the libray launch in Busia

By Frank Mugabi

BUSIA municipal council authorities have established a public library.The 80-seater reading room was commissioned by Kirunda Kivejinja, the third deputy premier, who is also internal affairs minister, on Friday during celebrations to mark the International Literacy Day in Busia town.

“We want people to appreciate that reading is not just for purposes of getting a job, but because people have to be informed,” he said.

Kivejinja said the Government intends to have a knowledge-based society within 30 years.

He called upon the National Library Association to put emphasis on professionalism among librarians.

The town clerk, Kenneth Ofwono, noted that Swedish friends equipped the library with 10 laptops and a 32-inch television set, while the National library of Uganda donated 300 titles.

He said they also reserved a reading section for children.

Gertrude Kayaga Mulindwa, the director of the National Library of Uganda, said they introduced reading events in the town two years ago.

“Residents were enthusiastic about reading. We advised the municipality to open a public library,” she observed.

Mulindwa said they were ready to support willing districts in terms of training of staff, donation of books and mentoring on how to organise and run libraries.

Building of cancer clinic starts
Sunday, 26th September, 2010
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Mallinga breaking the ground to launch the construction

By Darious Magara

CONSTRUCTION of a block worth sh6b for the Uganda Cancer Institute was launched last week.The ceremony at Mulago Hospital was presided over by Deputy Premier Henry Kajura, who represented the Prime Minister, Prof. Apollo Nsibambi.

“Cancer is becoming a major challenge to Uganda and other developing countries. For every 1,000 persons in the country, 200 will be new cancer patients every year,” the Prime Minister said.

He note that more than 80% of the newly-diagnosed cancer patients are killed by the disease per year.

Nsibambi said cancer also poses a big burden on the country since most cancer patients are young compared to those in developed countries.

“There is great need to address this challenge through having in place infrastructure to ensure that there are adequate human resource and drugs,” he said.

Nsibambi pledged that the Government would ensure that the essential cancer drugs are availed to the institute, which he said had in the past received support from International organisations.

The health minister, Dr. Stephen Mallinga, urged Ugandans to watch their diet, avoid oily foods, smoking, alcohol abuse and promiscuity, which are some of the major causes of cancer.

Prof. Charles Olweny, the institute director, thanked the Government for supporting health care services in the country and asked for more funds to be committed to the cancer institute.

Ambitious Construction Company has been hired to build the five-storied block. Construction is expected take a year.

preme3000

September 28th, 2010, 11:57 AM

Uganda to earn $60m from foreign students annually
Monday, 27th September, 2010

By Josephine Maseruka

UGANDA expects to earn $60m (sh135b) from the enrollment of 6,000 foreign students annually through the Marketing Education Services project.

Trade and tourism minister Gaggawala Wambuzi said the project, still in its infancy, is targeting foreign students from the East African Community and the Common Market for Eastern and Southern Africa.

The project will be implemented in partnership with 13 universities in Uganda, which will be tasked with attracting the students.

“Uganda is doing excellently in the education service sector. The project will boost income in the service industry,” Wambuzi said.

The minister was briefing journalists at the Media Centre in Kampala on the week-long activities of the annual President’s Export Award.

President Yoweri Museveni will on Friday hand over awards to exporters who have excelled in various categories. He will do this at a dinner at the Imperial Royale Hotel in Kampala.

Over 600 exporters are expected to attend the 11th award ceremony under the theme ‘Regional Integration: Bigger is Better Trade’.

According to a paper presented at the World Export Development Forum in October 2007 in Switzerland, Kenya is the leading source of international students in Uganda, contributing over 60% at the secondary level and 71% at the university level.

Tanzania follows with 16% and 12% respectively. Others are Congo, Burundi, Rwanda and Sudan.

According to a survey conducted by the Uganda Export Promotion Board in March 2005, most of the foreign students come to Uganda targeting specific courses. These are law, medicine, surgery, pharmacy, agriculture, tourism, computer science, information technology, engineering, commerce, accounting and finance, international studies, purchasing, supplies management and education.

Uganda, in the 2004/05 financial year, earned $32m (sh51b) from foreign students, according to statistics from the Uganda Revenue Authority.

This makes education the fourth-largest foreign exchange earner.

u.g boy

September 28th, 2010, 06:41 PM

Over sh400b transacted over mobile money
Monday, 27th September, 2010
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By Ayiga ondoga

OVER sh400b has been transacted through the MTN mobile money services, Junior Kwebiiha, the MTN national sales manager, public access, has said.

“Mobile money will change the financial services in the country if customers can access it in every corner of Uganda,” Kwebiiha said.

He made the remarks during the launch of Simba Telecom mobile money on Kampala road, last week where the chief guest was Patrick Bitature, the Simba Group of Companies chairman.

“The launch of the Simba Telecom mobile money is a landmark gesture because the company has been the biggest retail establishment in Uganda, ” Bitature said.

“The mobile money service is the beginning of the telecom revolution of promoting economic and financial error because people are becoming economically active and the money movement is faster, which makes the economy to grow,” Bitature added.

“It is good to take services closer to the people. We are not looking for quick money but a long term investment.”

Bitature then commissioned the eight teller banking hall on Kampala Road where over one thousand customers turned up to bank.

He added that the demand for airtime could never equal the demand for cash which was why the introduction of the mobile money as a service by MTN was significant to Simba Telecom.

Uganda crafts get to UK supermarkets
Monday, 27th September, 2010
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By Josephine Maseruka

THE TJX supermarket chain in the UK has ordered for 1,000 products of crafts and arts, worth $500,000 (about sh1.1b) from Uganda.

This is under the ‘Handicrafts Development and Supermarket Linkage’ programme coordinated by the Ministry of Trade and Industry and the Uganda Export Promotion Board.

Cotton prices at sh1,100
Monday, 27th September, 2010
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By Tom Gwebayanga

Cotton prices in Busoga have shot up to sh1,100 per kilogramme, a report from the Cotton Development Organisation (CDO), has shown. The good prices have encouraged more farmers to grow the crop, with many clearing and planting new gardens. John Butereba, a CDO agent for Kamuli and Buyende districts, said the good prices would be maintained throughout the harvest season.

“We have the cash to buy all the cotton, but urge our farmers to ensure quality and enhance production,” Buteraba said at the CDO depot at Irundu in Kagulu sub-county last week.

Over the years, cotton farmers have been earning between sh450 and sh650 per kilogramme until last year when the price went up to sh900.

Union renovates buildings
Monday, 27th September, 2010
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By daniel Edyegu

Bugisu Co-operative Union has started renovating its 16 buildings in Mbale town to step up sources of income. Bernard Sabakaki, the union general manager, explained that under the two-year initiative projected to cost sh200m, they would repair the drainage systems, piped water lines, the wiring and give a facelift to the buildings.

“It’s long since we worked on these buildings. The drainage systems and water pipes are leaking and the paint-work is worn out,” Sabakaki said. Except for the storied block on Plot 52, Court Road, the union buildings, most of which were cosntructed in 1960s, have been in a sorry state.

The union is looking at the buildings as a fall-back to cushion the blow rendered by the low coffee trade.

Kanungu plant to out 6MW
Monday, 27th September, 2010
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Power boost: Ongoing work at the 6MW power plant in Kanungu

By david ssempijja

Kanungu plant to out 6MW
Ronald Mbabazi runs a metal fabrication workshop in Kanungu town. Apart from the exorbitant cost of buying raw materials from Kampala, power instability remains a challenge to his business.

However, Mbabazi’s woes will be no more come January next year when the $14m (sh30.8b) mini-hydro-power project in Kanyantorogo sub-county in Kanungu district is completed.

The project that is about 70% complete, will produce 6.6MW. Uganda produces about 540MW from the Nalubaale and Kiira dams and a host of thermal and renewable power plants countrywide, ranging from mini-hydros to sugar cane co-generation facilities.

The Kanungu project is undertaken by Eco Power Uganda Limited, a subsidiary of Eco Power PVT-Sri-Lanka.

“This project will increase the capacity of power in Kanungu and the surrounding districts, support the development of industries and stimulate other areas of investments,” Samarakoon Banda, the project’s senior manager, said while taking journalists on guided tour of the project last week.

Banda said the firm has also applied a licence to build a 6MW plant on River Rwizi in Mbarara. The projects are co-funded by the National Development Bank of Sri-Lanka, Hatton National Bank and Commercial Bank of Sri-Lanka.

“All our plants have been registered by the executive board of the Kyoto Protocol because they are qualified to supply carbon emissions reduction credits,” Banda adds.

Eco Power has developed 13 mini-hydro sites in Sri Lanka and has generation capacity of 40MW. The company also operates in Rwanda. The firm employees over 500 residents as casual labourers.

Kenneth Tumuhamye, the chairman of Kyanyantorogo sub-county, thanked the firm for sponsoring one medical officer from Kihiihi Health Centre to study surgery at Kampala International University.

Pre-paid electricity metering starts next month
Monday, 27th September, 2010
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UMEME will launch its long-awaited pre-paid metering service in October, the head of the communications, Charlotte Kemigisha, said over the weekend.

With a pre-paid service, electricity consumers pay upfront and are given cards, which enable them to consume units of electricity they have paid for.

Kemigisha said the service would start with Kitintale zone, which comprises Bugolobi, Mbuya, Kitintale, Mutungo, Port Bell and Kinawataka.

Butaleja schools get Shs200m

By Mudangha Kolyangha (email the author)

Posted Tuesday, September 28 2010 at 00:00

Butaleja

The Japanese government, through her education programme has supported 11 primary schools in Butaleja District with Shs219 million. The money is meant for the construction of more classrooms and procurement of furniture to address the existing gap.

Mr Masaki Shiga, the Deputy Japanese Ambassador, disclosed that poor educational facilities are likely to cripple the learning environment if the situation is not urgently addressed. “We need to come in and supplement government efforts by uplifting the education standards through provision of better learning facilities like furniture, which today, the people of Butaleja have witnessed,” Mr Shiga said on Friday at Buhasango Primary School.

u.g boy

September 29th, 2010, 05:39 PM

Ministry to build training centre
Tuesday, 28th September, 2010
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By Norman Katende

MINISTRY of education permanent secretary Xavier Francis Lubanga will set to head a team of 13 that will be in charge of constructing Uganda’s first fully furnished high altitude training centre in Kapchorwa.

It is expected to be used by athletics, rugby and football at first and will be funded by the Ugandan and German government together with the world soccer governing body FIFA and athletics body IAAF. It is expected to cost sh400m to construct.

Athletics, football and rugby association bosses Dominic Otuchet, Lawrence Mulindwa and William Blick are part of the committee, together with international sports expert Gunter Lange, who is the brainchild of the centre.

The centre set to be constructed at an altitude of 2555m will have a jogging and running track, a grass and artificial turf field, indoor gymnasium and indoor swimming pool, a strength room and physiotherapy room and a hotel.

Zain,Uganda telecom, MTN cut call rates
Tuesday, 28th September, 2010
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By David Mugabe
ZAIN, MTN and Uganda Telecom yesterday announced a reduction in call rates as the tariff war took a new front in one of Africa’s fiercest telecom markets.Last week, Warid drew first blood by dropping call rates to sh5 per second across all networks.

The move by Warid set the stage for a furious price war as the telecom firms tried to outpace each other.

Yesterday, MTN and UTL declared lower call rates between sh4 to sh5. But Zain quickly outmaneuvered the three by announcing sh3 per second to all networks, including Zain to Zain.

It now means that Zain is the cheapest operator, charging sh180 per minute to all networks. The offer applies to both prepaid and postpaid customers.

Levi Nyakundi, the Zain marketing manager for usage and retention, said the drop was permanent.

“It is a 66% price drop on the most popular tariff plan - Zain Flexi - which has been sh9 on-net and sh11 off-network,” said Nyakundi.

It was expected that Zain, bought by Bharti Airtel, would adopt a drastic pricing model largely on heavily discounted call charges, as happened in Kenya about two months ago, where calls are as cheap as sh81 (Ksh3).

Uganda Telecom had also turned the barrels to the other operators, announcing a rate of sh4 for calls from UTL to UTL and sh5 for calls to other networks.

According to a statement from UTL’s chief marketing officer, Mohamadou Konkobo, UTL customers will now spend a maximum of sh240 to make a call within the network and a maximum of sh300 to call other networks.

On its part, MTN announced a “celebration promotion” at sh3 per second on the per-second billing tariff plan and sh160 for calls within the MTN Yellowmax tariff plan.

Isaac Nsereko, the MTN chief marketing officer, explained that clients on the per-minute plan will pay sh320 per minute for the first 10 minutes of the day. For the rest of the day, calls will cost sh160 within the MTN network.

On the MTN per-second tariff plan, customers will pay sh6 for the first five minutes, then sh3 per second for the rest of the day within the MTN network. Calls from MTN to other networks remain at sh6 per second all day, which remains one of the highest in the market.

It has been a feverish seven days in which telecoms have spied on each other for tariff structures booked with advertising agencies and letters to the regulator, Uganda Communications Commission (UCC), with cancellation after cancellation before final tariff plans were agreed upon.

MTN boasts of over 50% of the market share. It means there are still more calls from MTN to MTN. But the telecom giant now faces stiff competition on voice that will be compounded when Bharti adapts its Asian model, where it has over 100 million subscribers.

In a letter to the UCC dated September 28, 2010, the MTN chief executive officer, Themba Khumalo, said the network had introduced the tariff to celebrate its 12 years of existence in Uganda.

“During these 12 years, we have been at the forefront of making telecommunications affordable and accessible,” Khumalo wrote.

Reports indicate that the new MTN tariffs were being launched under the umbrella campaign labelled ‘Yarriba’.

The UCC public relations officer, Isaac Kalembe, said the development is good for the industry.

“(Personally) I think we are moving in the right direction because it is the wish of UCC that the rates are reduced,” said Kalembe.

Analysts also believe this plays into the hands of the consumer who has been paying an exorbitant price compared to other regional markets, largely because of the high interconnection fees.

Government to construct sh87b prison in Wakiso
Tuesday, 28th September, 2010
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By Jeff Lule

THE Government is to spend sh87b on the construction of a new prison, according to the commissioner general of prisons.Johnson Byabashaija said the prison would accommodate inmates from Kigo and Kirinya prisons.

Kigo Prison in Wakiso district sits on land that the Buganda Kingdom wants handed back, while Kirinya’s land in Jinja district was given away by the Government to an investor in 2007.

“We want this prison to meet international standards,” Byabashaija said.

He was addressing journalists at the prisons headquarters in Kampala yesterday.

The construction is expected to kick off early next year in Kasanje sisa sub-county in Wakiso district. The facility is expected to accommodate over 5,000 inmates.

Byabashaija said the funds are available.

He will meet Rwanda prisons chief Mary Gahonzire in Kampala to discuss a joint cooperation on improving the prison services within the two countries. The Rwandan team will tour different prisons during the three-day visit.

Uganda gets sh72b for climate change
Tuesday, 28th September, 2010
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By Patrick Jaramogi

THE United Nations agencies in Uganda yesterday committed $36m (sh72b) towards supporting government initiatives on climate change.

The five-year programme is a joint initiative between six resident and four non-resident United Nations agencies. The funds will be channelled to the districts and communities.

The UN Uganda resident coordinator, Theophane Nikyema, said the programme will help Uganda develop a national climate change policy, climate change research agenda, district capacity building programmes and sensitisation campaigns.

Uganda is among the first countries in the world to have a UN/government joint programme on climate change, according to Nikyema.

“Uganda is facing serious climate change with temperatures expected to rise up to 1.5 degrees by 2020. The impacts include droughts, floods, landslides and glacial melting causing severe disruption to the ecosystem,” he said.

Environment state minister Jessica Eriyo, who represented the Government, said the funds would be used to address calamities such as drought, floods and landslides.

Schools get new teaching software
Tuesday, 28th September, 2010
A new teaching software known as smart board has been launched for easy learning among students. The software was launched on Sunday at Bishop Cipriano Kihangire Senior Secondary School Binna in Luzira.

According to Emmanuel Mwaka, an IT expert, the software is fast and makes it easy for students to understand a particular subject.

The smart board is operated using a computer which is fed with data that is displayed on a smart board using a touch screen. Fr. John Scalabrini, the school’s director, said the software keeps records of previous lessons and helps keep track of pupil and teacher attendance.

Luweero gets veterinary centre
Tuesday, 28th September, 2010
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By Frederick Kiwanuka

Cattle farmers in eight central Ugandan districts will no longer have to travel long distances to Kampala in search of veterinary services after the Uganda Meat Producers’ Union set up a zonal disease control centre in Luweero.

The centre, funded by the Ugandan and the Norwegian governments, will serve farmers in Luweero, Nakaseke, Nakasongola, Masindi, Hoima, Buliisa, Kiboga and Mityana districts.

George Mugyenyi, the union’s national treasurer, said the move was part of a strategy to improve the quality of meat for the local and export markets.

The country has been divided into four zones and all the zonal disease control centres will be fully furnished and manned by qualified animal husbandry officers, for quality service delivery to farmers. “We want to improve the quality of meat because we shall soon be exporting it,” Mugyenyi said at the launch of the centre.

James Bigirwa, the business manager, revealed that a multi-million abattoir would also be set up by Norwegians in the area where farmers from Nakasongola, Luweero and Nakaseke could sell their livestock.

He said the abattoir would need about 5,000 animals each month.

Katakwi, Mororo, Napak to get sh13b power line
Tuesday, 28th September, 2010
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By Ronald Kalyango & Olandason Wanyama

Construction works for a power line from Katakwi to Moroto and the newly-created Napak district in Karamoja sub-region has been commissioned. The sh12.6b line funded by the Government through the Rural Electrification Agency (REA), follows earlier construction works, which were commissioned in Nakapiripirit and Amudat districts early this month.

This means Kotido and Kaabong districts are the only two districts remaining to be connected to the main grid. Mineral development state minister, Peter Lokeris, who commissioned the construction works at Katakwi district headquarters, assured residents that the entire region would be connected to the main grid.

“We have developed several measures, including the rural electrification fund with a board and agency, to accelerate rural electrification,” said Lokeris. He said the ministry’s priorities were district headquarters, agro-processing centres like factories, health facilities, educational institutions, water supply and electricity for information communication technology applications.

“Agriculture development are centred in rural areas, and to modernise it (agriculture), electricity is central to support agro-processing, provide conducive conditions for longer shelf life among others,” said Lokeris.

He also assured the gathering that the Government had secured funding from the World Bank to extend power from Soroti to Katakwi district.

Dr. Patricia Litho, the REA spokesperson, said the construction works, to be undertaken by A2Z Maintenance & Engineering Services, would be completed within 15 months.

The 33kv power line covers a distance of 150km and will benefit residents of Ochomongin, Ngariam, Aakum, Iriiri town council, Lorengechora, Matany, Moroto State Lodge, Kangole, Moroto SS and the surrounding areas.

She the destroyed property would be compensated for after the construction of the power line.“Building of the power lines involves use of people’s land and a few crops and trees may be lost. If there is any discontent, we expect to get back to you to address such issues,” said Litho.

The Katakwi vice-chairperson, Margaret Ikulot, lauded the development.

NARO to spend $120m in five years
Tuesday, 28th September, 2010
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By Ronald Kalyango
The National Agricultural Research Organisation (NARO) activities for the next five years will cost $120m, agriculture minister, Hope Mwesigye, said over the weekend. Mwesigye revealed this while visiting Animal Breeding Research Centre in Entebbe, the Fisheries Institute in Kajjansi, Kawanda and Mukono research institutes and Mayuge landing site.

She said the project documents had been approved by the Cabinet and would soon be tabled in Parliament. “Cabinet approved the documents and soon we shall defend them in the agricultural committee after which, we shall proceed for further discussions before we start utilising the funds,” said Mwesigye.

The minister said the funds, which were sourced from several development partners would help NARO and the National Agricultural Advisory Services to jointly implement a five-year project titled: “Agricultural Technology and Agro Business Advisory Services project.”

Mwesigye said the funds would be used to carry out agricultural research in crops, livestock, fisheries and other services such as infrastructure and personnel development.

She said this arrangement aims at creating centres of excellence which will be geared towards ensuring food security in the countryside.

While at the animal breeding centre in Entebbe, Mwesigye challenged scientists to be innovative to revamp their institution into an income generating centre.

However, the chairman of the board, Dr. Benon Kanyima, informed the minister that limited funding had hindered their research activities.

Organic market expands
Tuesday, 28th September, 2010
http://www.newvision.co.ug/NP/1285687183Untitled-1.jpg
way to go: Isiko Stephen, NOGAMU’s director eastern region, Musisi and Namuwoza, admire organic products Barasa (left) exchange documents with Schrieh

By David Ssempijja

Uganda’s capacity to earn up to $100m per year from the $50b organic products world market has been hampered by the low levels of production. Uganda exported $30m (about sh66b) worth of dried and fresh organic products to different countries during 2008/09.

Organic farming is the form of agriculture that relies on techniques such as crop rotation, green manure, compost, and biological pest control, to maintain soil productivity and control pests on a farm. Organic farming excludes or strictly limits the use of manufactured fertilisers and pesticides, plant growth regulators such as hormones, livestock anti-biotics, food additives and genetically modified organisms.

The low output has left local exporters to consistently fall short of their orders, Frederick Musisi, the chairman of the National Organic Agriculture Movement of Uganda (NOGAMU), said.

Musisi indicated that the national body lacked resources to train farmers in the required international standards of organic products. “The markets where we sell require strict compliance.

“We must have globally certified products, but it takes a lot of technology, money and time to attain the required degree through observation of the internal control systems,” he said.

Musisi was speaking a speech during the national organic farmers’ day celebrations at Iganga district grounds on Saturday.

The celebrations were conducted under the theme “Strengthening market linkages for organic farmers.” Charity Namuwoza, the NOGAMU international marketing officer, was dismayed that though the body’s membership had grown to 292 organisations, representing over one million smallholder farmers, only 200,000 farmers were producing organically-certified products for the world market.

“We request the Government to help in funding farmers’ training and avail us with processing machines so that we can add-value before exporting especially through drying our perishables,” she said.

u.g boy

September 29th, 2010, 05:47 PM

Works needs Shs200b for priority roads

By Richard Wanambwa (email the author)

Posted Wednesday, September 29 2010 at 00:00

Kampala

Works minister John Nasasira has requested for Shs202 billion to repair priority roads ahead of the 2011 general elections. Eng. Nasasira wrote to his counterpart from finance, Ms Syda Bbumba, on July 18 saying the money would help speed up the construction work on the roads because President Museveni has always reiterated his desire to construct the roads. He said this was in line with the 2006 National Resistance Movement manifesto.

“You will recall that in June 2008, the government undertook to provide an additional $600 million (Shs1.3 trillion) over a period of three years ie $200million per year (Shs450 billion) over and above the normal development budget for implementation of priority roads development projects, which the President reiterates in his State of the Nation speeches and during meetings with the leaders and general population around the country,” reads Eng. Nasasira’s letter.

The roads to benefit from this programme include, Mbarara-Kikagati, Ntungamo- Mirama Hills/Kagamba-Ishaka, Mukono-Kyetume-Katos/Kisoga-Nyenga,Kapchwora-Suam, Moroto-Nakapiripit, Mpigi-Maddu-Sembabule, Hoima-Kaiso-Tonya, Rukungiri-Kihihi-Kanungu/Ishasha and Mbarara Bypass.

Money not utilised
Eng. Nasasira said based on the above undertaking and the Finance Ministry’s commitment to reserve this additional road development budget, the sector through Uganda National Roads Authority (UNRA) has designed the above roads as priority roads and the procurement of contractors is in advanced stages.

When contacted, Eng. Nasasira told Daily Monitor yesterday that although; UNRA never utilised all the funds in the 2008/2009 financial year, due to delays in procuring contractors and road designs, UNRA has never returned the alleged Shs200 billion to the national coffers because it was budgeted money and was still in the hands of Finance.

Recently, UNRA official, appearing before the Public Accounts Committee of Parliament (PAC) told MPs that they had not utilised all the money as there was a balance of Shs200 billion because of the delays in awarding contracts. This arose out of an audit query by the Auditor General’s report of financial year 2008/2009 where he cited Shs200 billion as unexplained funds by UNRA.

Designs now ready
“It’s not true that we returned money to finance and there was no money returned since we did not posses it. I would like to recognise the fact that the sector has over the past two years been unable to absorb the funds as availed in the budget,” he said. “This has in part been due to the fact that the designs for the planned road development projects were not ready and therefore their implementation could not commence.”

Eng. Nasasira explained that after two years of project gestation, project designs are now being finalized and procurement of works for implementation is now in advanced stages and that contracts would be awarded in November.

u.g boy

September 30th, 2010, 05:28 PM

Twenty six feeder roads to be repaired
Wednesday, 29th September, 2010
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By Pascal Kwesiga

THE repair of 582km of feeder roads in 26 districts begins immediately. Yesterday, the Government signed sh21b contracts with 16 firms to rehabilitate the network, which is expected to be ready in six months.

Local government permanent secretary John Hashaka signed for the Government in Kampala.

The beneficiary districts are Rakai, Lyantonde, Masaka, Sembabule, Kibaale, Kiboga, Mubende, Mityana, Mpigi, Nakasongola, Mukono, Kayunga, Kamuli, Kaliro, Iganga, Namutumba, Budaka and Pallisa. Others are Tororo, Butaleja, Manafwa, Bududa, Mbale, Sironko, Kapchorwa and Bukwo.

Hashaka warned the contractors against shoddy work. “We need value for money because we are constructing these roads for ourselves, our children and the future,” he said.

The contractors, he cautioned, should supervise themselves and urged them to liaise with the district authorities for effective execution of the programme.

Hashaka added that good roads are a major component of the Prosperity-For-All programme. “Don’t cause unnecessary problems to us because this money is passed by Parliament to which we shall give our accountability,” he added.

The money was borrowed from the African Development Bank and will be repaid in 25 years.

The national project facilitator, Yasin Sendawula, said more feeder roads would be rehabilitated in phases. He said this would ease transport, especially for agricultural produce dealers.

Reading this year’s budget, finance minister Syda Bbumba said the Government would put emphasis on the development of roads.

She said 322km of roads nationwide would be upgraded to tarmac. Another 2,050km were also being prepared for upgrade this financial year in order to ease communication and promote economic growth. She said sh268b would be available for districts, urban authorities and the Uganda National Road Authority to undertake road maintenance.

TATA to set up e-govt kiosks in Uganda
Wednesday, 29th September, 2010
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By Rogers Okwany

INDIA'S largest software vendor, Tata Consultancy Services (TCS), has announced plans to set up franchise internet kiosk, a new IT model, to link rural areas in Uganda.

The group, that has just completed setting up the e-tax system for Uganda Revenue Authority (URA), said it would either work with the existing network infrastructure or build a wider one for itself.

The e-tax system is an online service for URA customers with functionalities that cover taxpayer registration tax returns and payment modules. The new system enables the customers to access services anytime and anywhere thereby reducing costs of doing business with the tax body.

The TCS vice-president, Tanmoy Chakrabarty, said the kiosk would go a long way in aiding the e-delivery of government services.

The model, which is to be set up across the country, is similar to the one in which telecommunication companies employ locals as their agents.

The kiosks will provide a wide range of IT services from data, voice and act as out-sourcing centres for companies and banks.

Mukono gets modern lab
Wednesday, 29th September, 2010
http://www.newvision.co.ug/NP/1285774767Untitled-9.jpg
Dr. Lukwago and Dr. Sundeep Gupta of the Centre for Disease Control opening the new laboratory in Mukono

By Jeff Lule

The Ministry of Health has commissioned a laboratory in Mukono district worth $200,000 (about sh400m). The project was funded by the US government through the US Centres for Disease Control and Prevention (CDC).

The laboratory was constructed at the Mukono Health Centre IV and is expected to serve about 50,000 people.

The project is aimed at increasing the availability of health services, including voluntary counselling and testing, tuberculosis screening and diagnosis of common opportunistic infections.

However, the health centre boss, Dr. Robert Kasirye, said the laboratory still lacks vital equipment which they cannot afford. The missing equipment includes blood counting machine, CD4 counting machine, heamatology machine, micro-biology (culture and sensitivity), blood transfusion facility and a centrifuge machine.

The district health officer, Dr. Elly Tumushabe, said only 16 out of the 42 health centres in the district offer laboratory services. He also decried the shortage of laboratory staff.

Health ministry permanent secretary Dr. Asuman Lukwago said they will ensure that the laboratory is well equipped.

The acting CDC director, Dr. Sundeep Gupta, said the centre was established to increase the availability of emergency obstetric care, HIV testing, assessment for entry to anti-retroviral therapy programmes and regular monitoring of persons on therapy.

Encroachers delay Gayaza road works
Wednesday, 29th September, 2010
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Ongoing roads works on the Kampala-Gayaza road hit by encroachers

By Samuel Balagadde

ENCROACHERS on the Kampala-Gayaza road reserve have ignored orders to leave, delaying the ongoing repair works.

Some illegal occupants, including road-side market vendors and mechanics, who have set up make-shift garages, have refused to vacate despite repeated reminders from the roads agency, Dan Alinange, the Uganda National Roads Authority spokesperson, said.

Work on the 44km Kampala-Gayaza-Zirobwe road, which started last year, was expected to be completed by the end of this year. The construction, being undertaken by Energo Project, is now about 50% done.

Alinange revealed that sh11b had been set aside to compensate residents affected by the project.

Work on the road started from the Gayaza-Zirobwe side, coming towards Kampala.

It involves building a round-about in Gayaza trading centre, erecting road signs and widening a 3km-stretch, from the Mulago round-about into a dual carriage way.

Locally made incubators spur poultry industry
Wednesday, 29th September, 2010
http://www.newvision.co.ug/NP/1285772590zulu.jpg
Jimmy Kawuma, a technical expert at BFCS, and Walusimbi, the director, showing the design of the incubators

By David Ssempijjaj

BY 2002, Godfrey Walusimbi already had 14 years experience in commercial poultry while Jimmy Kiwanuka had five years of electrical engineering and motor mechanics.

In February 2002, Walusimbi approached Kiwanuka on how they would combine their biological and electrical expertise to come up with an incubator that would enable poultry businesses go fully commercial.

Eight months later, the two men tested their first incubator that scored 70% hatchability capacity. This is the ratio of incubated number eggs to those hatched. The success that came along with that technological innovation led Kiwanuka to change his line of work.

He is now the technical manager of Butenga Farmers Chick Star (BFCS), a poultry farming business founded by Walusimbi in 1988. The original plan with the incubator was to shift from selling eggs from the farm and deal in chicks too.

“But when our local technology triumphed over the imported, people started demanding to buy them from us and now, it is one of our major businesses,” Kiwanuka says.

He says the first incubator had a 700-egg capacity, but now the company produces an incubator range that has a 896-capacity to 10,000 for domestic or small- scale users.

Another one covers 20,000 to 30,000 for commercial clients all with improved technology enabling them to attain an 85% hatchability mark compared with the 70% for the imported.

“We take our business as a national pride. We are the originators of the technology we apply. South Africa and Uganda could be the only countries where incubators are manufactured in Africa,” Kiwanuka says.

The company has taken on a journey along which it has gained local and international popularity for relieving African poultry farmers of the burden of importing incubators from Britain and India as well as chicks from Zimbabwe.

The incubators cost between sh4m and sh35m. Some are bought locally while others are exported to countries such as Rwanda and the DRC. Locally, NAADS is their biggest corporate client.

BFCS also has a range of incubators reserved for farmers who take their eggs for incubation and hatching, at 150 per egg. It also hatches eggs for birds such as ostriches.

Walusimbi says that currently a tray of layer eggs costs sh18,000 while a layer chick costs sh2,400. In a tray of 30 eggs, he says, a farmer who has resorted to incubation and hatching they stands to earn sh54,000 as profit.

Cost effectiveness
According to Jafali Ndugga, the managing director of Valley Poultry Breeders, getting introduced to BFCS’ incubators was a big remedy to the operational challenges he used to face.

He says he bought a 10,000-egg capacity incubator from BFCS at sh15m, yet he used to import incubators of similar capacity from India at sh35m.

“The locally-made incubators are also more user-friendly than the imported ones and when they develop technical problems, the company technicians help you through a phone call or report physically in less than a day.”

Ndugga reasons that though countries like Britain and India give guarantees too, it doesn’t help much because they are always hard to reach.

The company’s enterprise mix
According to Walusimbi, the farm currently has a 5,000 parent stock of improved breeds imported from Netherlands and Mauritius and more than 3,000 chicks are hatched every week.

Apart from the poultry business, Walusimbi says the firm also has a small factory that manufactures egg trays from paper waste. They also have candle-moulding machines and banana plantations and also rear goats on their 6.5 acre land.

Achievements and challenges
Walusimbi has registered a number of achievements out of incubators and poultry business, but the most memorable is the sh40m Fuso truck donated to him by President Yoweri Museveni in February this year while touring the progress of the Prosperity-For-All projects in Wakiso district.

His company is a three time winner of trophies in the annual Source of the Nile Agriculture exhibition held in Jinja.

Through BFCS, the director has been able to conduct internship programs for a number of local and international tertiary institutions offering farming technology courses.

“In addition to our shops in Kireka and Venus Plaza in Kampala, we are currently constructing a three-flour complex in Kira which will serve as a mega show room and training centre,” he says.
The challenges the company faces include incubator-making parts such as sensors and wood which are imported, which make the final products a little costly, Walusimbi says.

“I am also happy that I managed to train in modern poultry technology at the Food and Allied Industries in Mauritius which knowledge I brought to Uganda,” he says.

FACT FILE
Name: Butenga Farmers Chick Star
Innovation: Manufacturing incubators
Other enterprises: Poultry
Location: Najeera-Kira, Wakiso
Contact: 0772-467-519; kasogod@yahoo.com

Construction of NDA laboratory starts
Wednesday, 29th September, 2010
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By David Mugabe

THE National Drug Authority (NDA) on Monday launched the construction of a new sh900m laboratory that should enhance drug safety regulation in the country.

Richard Nduhuura, the state health minister, said the lack of proper quality controls has sometimes resulted in tragic cases because of toxic and counterfeit substances.

“This (laboratory) should decrease mortality and increase confidence in health systems and health workers,” said Nduhuura.

The minister said upon completion, the laboratory would enhance drug regulation by providing scientific evidence of drug safety.

The facility, situated outside the main gate of the Mulago National Referral Hospital, will be completed in about six months.

The new laboratory will also house veterinary testing units, micro-biology and documentation.
The first mini-quality control laboratory was built in 1998 by Makerere University through the department of pharmacy.

Frank Mwesigye, the NDA chairman, narrated that in 1999, the mini-laboratory was upgraded and has since been doing routine quality controls for some medical items like condoms, gloves and mosquito nets. But the lab lacks facilities to undertake micro-biology tests, which are currently done from outside.

“This has caused delays, is inconvenient and expensive,” he said.
According to Apollo Muhairwe, the NDA executive secretary, the regulator will also construct a new office block that is estimated to cost about sh2b from internally-generated revenue.

The drugs regulator has fought counterfeit drugs that find their way into the country, putting the lives of the population at risk and denying the country revenue.

Last year in September, five tonnes of medicines were impounded after sustained monitoring.

monitoring and operation by Interpol and the National Drug Authority, with support from the World Health Organisation led taskforce (International Medical Products Anti-Counterfeiting Taskforce-IMPACT).

One of the drugs, chloroquine was found in a container labeled Quinine because Quinine is more expensive and would fetch the seller more money.

Scrap for cash: He converts old PCs to TVs
Wednesday, 29th September, 2010
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Sebuliba assembling a television set

By Gerald Tenywa

IN Katwe, a Kampala city suburb, youthful Imran Sebuliba walks as though there are springs in his feet. Sebuliba has helped the residents of Katwe earn more bragging rights to the suburb, which is synonymous with artisan inventions.

He literally gives old computers a second life by converting them into television sets. Though the sets do not have a “Made in Uganda” label, Sebuliba has become a household name.

As motorists drive through Katwe spewing dust, little do they know that behind the roadside littered with rusty tin-roofed houses is a growing enterprise that is churning out more than 20 television sets a day.

“I can make up to 20 television sets a day in a busy season like Christmas because many people want to have some form of entertainment then.”
Sebuliba buys old computers of 15 inches at sh30,000 and 17 inches at sh40,000, which bring returns ranging from sh100,000 and sh140,000 respectively.

He extracts the circuit boards and cathode ray tubes from the old computers, which he places into new television body (frames) imported from Dubai or China.

The old frames are taken by people scavenging for waste to sell to recyclers. Kampala’s businessmen in electronics including Indians, Sebuliba says, purchase the sets and resale them in upper parts of the city at sh170,000.

“They sell them as new because even imported television sets have nothing so special that distinguish them from mine,” says Sebuliba.

According to sources who have bought Sebuliba’s television sets, they display sharper images and are more durable.

His turnover has helped him stay afloat in business. “I can make a television set in about 10 minutes,” he says. “I owe this to people who have trained me as a technician and trusted me with their businesses.”

He operates in a tiny workshop shared by six others, each of whom specialises in a different aspect. “It becomes easy to collectively pay rent since each of us contributes sh70,000 every month.”

As we move to Sebuliba’s workshop, we encounter second-hand computers with “fat bellies” bearing inscriptions FIRRI (Fisheries Resources Research Institute) being ferried in and Sebuliba whispers to me that middlemen will soon take them to his workshop.
Sebuliba exudes brilliance, patience and warmth which have helped him to stand out of the crowd.

Born near Iganga town in 1985, Sebuliba lost his father when he was a baby and his mother, eight years later. He was brought up by one of his aunties before he landed in the hands of technicians at Kalitunsi in Katwe.
“What I remember is they all assured me of their support provided that I remained trustworthy. I religiously followed their advice.”

First, Sebuliba got skills of repairing television sets. “There are many television sets that are imported with faults. Many others are affected by power fluctuations and repairing such sets was my first area of accomplishment.”

Two years ago, old computers imported into the country started flooding Katwe. When Sebuliba looked at them keenly, they had similarities with television sets. He put his mind into turning them into television sets and when his experiment worked, started an outlet for television sets made in Katwe.

He is keen on going back to school so he can speak English which he believes will take him places, including China, where he hopes to go oneday, “for deals on buying television frames and other parts cheaply.

Old computers hazardous
As Sebuliba goes about his work, he is not fully aware of the hazardous emissions from old computers.

“It is true that there are strange fumes that come from the computers when they break,” he says. “I keep away and only return when the fumes have disappeared.”

But Margaret Aanyu of the National Environment Management Authority (NEMA) says artisans like Sebuliba working without protective gear are exposed to dangerous emissions with far-reaching implications. She says the impacts, which are not immediate, include cancer-related ailments.

Other sources like Green Peace, an international non-Governmental Organisation, in a report entitled “Poisoning the poor: electronic waste in Ghana,” says hazardous chemicals in computers cause kidney complications.

Aanyu says Sebuliba needs to work in a specialised workshop and use protective wear, but the country has not attained such capacity.
In addition to safety concerns, NEMA’s director, Aryamanya Mugisha, says developed countries were exploiting the loopholes and dumping electronic waste in the country.

He says the country faces risk of becoming a dumping ground for electronic waste if tough measures are not taken.

The Government, in the budget statement last year, imposed a ban on second hand electronic equipment such as old computers and refrigerators as part of the measures to guard against wanton disposal of waste.

But technicians are opposed to the ban. Their reasoning is that the kind of products Sebuliba has exhibited is the same that Uganda would import from China or India.

“So banning electronic waste is like playing in the hands of the developing world,” concludes Hajji Habib Kulumba, a businessman.

People like Sebuliba, Kulumba says, should be assisted because the so-called new computers that are being imported are also second-hand and only re-furbished and re-sold to countries like Uganda.

“It is ridiculous to close Uganda’s small-scale industry and hand it over to countries whose welfare is better than ours,” says Kulumba. “If we ban second hand computers we will be making a market for China and India while denying our own youth employment.”

NEMA on a sustainable path
But the director of environmental compliance at NEMA, Waiswa Ayazika, says a regulation is being formulated to implement the Financial Act that will address issues such as Kulumba’s, over banning old electronic equipment also referred to as e-waste.

Concerning computers which are currently in use, but expected to become obsolete in years to come, Waiswa pointed out that the regulation under the Financial Act will propose methods of their disposal.

“We have companies that are interested in removing useful parts and then destroying the hazardous components,” says Waiswa. “We will look at all this. The good thing is that the formulation of the regulation is going to be a consultative process.”

The decision to support people like Sebuliba to turn waste into wealth or ban importation of second-hand goods in order to protect the environment is like a hot potato for the Government.

The regulation under the Financial Act will hopefully provide options for Sebuliba to conduct work without compromising health and the environment.

FACT FILE
Name: Imran Sebuliba
Innovation: Converting old monitor screens to Television sets
Location: Katwe Kalitunsi (opposite the Pan African Square)

u.g boy

October 1st, 2010, 06:09 PM

MUK launches anti-poverty project
Thursday, 30th September, 2010
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By Jeff Lule

MAKERERE University has launched a new agricultural project aimed at enhancing agricultural innovations to eradicate poverty in the country.

The project, codenamed “Graduates to Foster Change through Agricultural Innovations” (GO4IT), is a regional initiative being implemented in three universities. The include Makerere University, Egerton University in Kenya and in Bunda College of Agriculture at the University of Malawi.

The initiative, which was launched yesterday at the department of food science and technology, is funded by the European Commission and supported by the African Caribbean and Pacific Science and Technology.

Launching the project on behalf of the university’s vice-chancellor, the dean of the faculty of agriculture, Prof. Samuel Kyamanywa, said GO4IT is aimed at equipping mid-career and young professionals, experts, organisations and rural people with agriculture innovations.

He said GO4IT is building on the existing programmes to respond to the emerging development challenges and labour market demands related to the agricultural sector.

“It will involve equipping all stakeholders through research and development with the essential competencies, knowledge, attitude and skills to facilitate innovation processes for rural economic development through application of science and technology,” Kyamaywa said.

He noted that things have been theoretically taught by lecturers, adding that it is the reason most agricultural practioners are lagging behind.

“Lecturers and other experts will be tasked to go to the field and put their theories into practice to create a sense of belonging. Students will strictly train on jobs,” he said.

Kyamaywa said this will help farmers to access solutions to their challenges as they learn new skills during their interaction with experts.

He noted that it was mandatory for all the institutions to lay strategies to address the challenges of economic development to support the countries programmes.

The head of the department of agriculture economics and agribusiness, Dr. Johnny Mugisha, said the programme will support the country in achieving the national development plans in the next five years and the Millennium Development Goal on poverty eradication.

Mugisha stressed that poor quality education has left many graduates on the streets because they cannot put in practice what they were taught.

“But this programme is going to help both the rural communities and the graduates. Our people will go into communities in rural areas and give the necessary skills to promote agriculture innovations,” he said.

The programme coordinator, Dr. Prossy Isibuka, said they had introduced a four-year doctorate programme and a mid-career training on innovation for rural development.

The project will be coordinated by the Regional Universities Forum for Capacity Building in Agriculture.

Mengo , govt to build low cost houses
Thursday, 30th September, 2010
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By Josephine Maseruka

THE Buganda Land Board is to invest in cheap housing units to cater for the low income earners, a Buganda kingdom official said yesterday.

The project will be a joint venture between Buganda Land Board, the lands ministry and the National Housing and Construction Company.

Buganda Land Board manages Buganda kingdom land and estates. It is the biggest land lord in Kyaddondo, which comprises of the districts of Kampala and Wakiso. It also has vast land in Busiro and Kyaggwe traditional counties.

“We are not selling any land but we lease it out. If there is a better development required on it, the people thereon are adequately compensated. A good example is the Serena Hotel in Munyonyo,” Saul Katumba Segawa, the land board’s communications and public relations manager, told journalists at Bulange.

Katumba was announcing the first ‘Grand Land and Property Fair’ exhibition in the Bulange gardens, from October 13. It is expected to attract over 100 exhibitors.

Towns urged to co-operate
Thursday, 30th September, 2010
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By Chris Mugasha

RESIDENTS of Bushenyi Municipality have called upon the Government to come up with comprehensive development plans for semi-urban and urban areas.

They suggested that Government institutions, especially ministries, liaise with local council authorities and local communities to ensure harmonisation.

Jarua Ntobotobo noted that some towns flood because the water ways have been blocked due to uncoordinated activities.

He said whenever they plant trees in reserve areas to conserve the environment, they are cut down to pave way for electricity lines.

The residents cited the recent underground Internet cable project and the ongoing expansion of the highway as ones where there is lack of coordination.

They also said criss-crossing wires leave the towns disorganised.

Construction sector spurs investment
Thursday, 30th September, 2010
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By David Ssempijja

THE booming construction sector is giving rise to new multi-million dollar investments to support the industry.

Recently, Roofings, makers of steel construction materials, opened a $112m factory at the Kampala Industrial Park in Namanve, with the capacity of producing 120,000 tonnes of steel products and Tororo Cement is setting up a $50m modern production line.

Sadolin Paints also intends to build a $5m (sh11b) factory to supply the fast-growing local and international market.

Chris Nugent, the managing director, said the construction sector had a direct bearing on the growth of support industries.

“Its progress calls for more investments in similar sectors.

“Our new investment will increase production capacity by 50%. We are considering setting up the new plant at the Namanve Industrial Park,” he said.

Pay-TV cost to drop as new channel opens
Thursday, 30th September, 2010
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By Patrick Jaramogi

THE cost for pay-TV channels is expected to drop further following the official launch of Star Times DTV in Uganda.

There are five pay-TV channels in the country: Multichoice, Pearl Digital TV, JR Net, Metropo Cable and Star Times DTV, which is being officially launched today.

Kevin Chen, the chief marketing officer of Star Times DTV, said they are set to introduce live football channels to step up the competition.

Currently, Multichoice is the only pay TV which airs live football. It charges at about sh350,000 for the initial installation and $48 (about sh110,000) for monthly subscription.

Star Times DTV charges an initial installation fee of sh120,000 and its monthly subscription fee is sh15,000 for 36 channels and shs25,000 for 40 channels.

“Our aim is to make pay-TV affordable to all Ugandans. We now have 30,000 subscribers, but once the numbers shoot up we shall have live football matches,” Chen told the press at their Kampala offices yesterday.

Multichoice, the pioneer of pay-TV in Uganda, has about the same number of subscribers.

The competition has forced Multichoice to slash its monthly charges nearly by a half for the premier packages from over sh500,000 to about sh290,000.

Chen added that they would be expanding to Mbarara and Gulu by next year.

“We have a commitment with the International Telecommunication Union to ensure that by 2012, Uganda has no analogue system,” he said.

Star Times DTV is chinese owned and also operates in about 10 countries in Africa, with its headquarters in Beijing, China.

StarTimes comes onto the market barely two years since Gateway Television Services (GTV) wound up.

u.g boy

October 2nd, 2010, 09:36 AM

1000kms of roads to be constructed
Friday, 1st October, 2010
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Some of the houses that have been marked with ‘X’, awaiting demolition

By Henry Nsubuga

THIRTY-TWO roads will be tarmacked beginning December this year and the Government has set aside $8b (sh1.8 trillion) for the countryside project. Over 60 others will be rehabilitated.

According to the Uganda National Roads Authority (UNRA), up to 1,000km of roads will be worked on and the funds were included in this year’s budget.

The roads include, Mbarara-Kikagati (75km), Nyakahita-Ibanda-Kamwenge-Fortportal (208km), Gulu-Atiak-Bibia-Nimulle (104km), Mpigi-Kabulasoke-Maddu-Sembabule (135km), Vurra-Arua-Koboko-Oraba (92km), Maraba/Busia-Bugiri (82km), Mbarara-Kabale-Katuna (154km), Mukono-Kayunga/Nkoloto-Njeru (94km), and Jinja-Kamuli (69km)

Others are Mukono-Katosi/Kisoga-Nyenga (72km), Moroto-Nakapiripirit (90km), Ntungamo-Kakitumba/Mirama hills (37km), Ishaka-Kagamba (72km), Kapchorwa-Suam (77km), Rukungiri-Kihihi-Ishasha (104 km), Kaiso-Tonya-Hoima (85km) and Soroti-Mbale-Tororo (140km).

UNRA publicist, Dan Kitakule Alinange, told Saturday Vision that the Government had started procuring the necessary items for the projects.

On some roads, he said, work had kicked off. These include Kampala-Masaka (124km), Kawempe-Kafu-Soroti-Lira (123km), Kabale-Kisoro (100km), Kampala-Gayaza-Zirobwe (42km), Matugga-Semuto-Kapeeka (41km), Masaka-Mbarara (148km), Kampala-Mityana (57km), Fortportal-Bundibugyo (103km) and Kampala-Jinja (80km).

Alinange said that the Government was using funds from the European Union and national coffers to run the projects. Many of the roads across the country are in a sorry state. Some of the roads will be widened in the process, which will result into the displacement of thousands of people who live along them.

The Government had demarcated the property that will be destroyed in the process. Their owners expect compensation.

The condemned properties include residential and commercial buildings, toilets, cemeteries and open grounds.

In some areas, the affected residents are complaining about their fate, with some doubting whether they will be genuinely compensated.

Some of the victims who talked to Saturday Vision, said even though work on the roads was about to start, they have not yet been cleared and yet they have to identify areas where to shift to.

The affected residents in Mpigi and Buntambala districts where UNRA has started working on the 153km of Mpigi-Butambala-Maddu-Sembabule road, had mixed reactions. “We want the road but we are desperate. We don’t know how our property will be valued and how much we shall be paid and when,” said Siraje Mubiru of Butambala.

Mohamed Kateregga of Bboza village in Mpigi said the whole of his plot would be consumed. “I have been living here for more than 20 years. I am not happy to shift to any other place and when those who were valuing the property came, they only considered what they could see, like the house and plantations. I am not sure whether they considered the land,” Kateregga said.

The mayor of Gombe town council, Abdu Kiwunde said that most of the residents will have to buy new plots of land elsewhere.

Some residents like Shida Najjuuko and Ben Ssekandi want the Government to explain to the locals what is going on instead of them landing on strangers walking through their land.

However, some residents welcome the development. “Development comes with a cost,” said Rose Nayiga, adding, “as long as people are compensated. After all, most of those houses are old. The owners should only be happy that they are going to build modern structures.”

Alinange assured them that before handing over the roads to the contractor, UNRA will have paid the affected residents.

u.g boy

October 3rd, 2010, 03:25 PM

Mgahinga gorilla Park wins global award

By Gerald Tenywa

MGAHINGA Gorilla National Park in south western Uganda has won the global award “The greatest wildlife encounter award for 2010” from the Lonely Planet magazine.

According to the UK-based publication, Mgahinga was nominated by a community of travellers in the UK, who use their website, the lonely planet magazine and buy guide books.

Joanna Gilmour, the marketing manager for the magazine, said Mgahinga was voted as our consumers greatest wildlife encounter in our 2010 awards.
The award comes with a certificate in a heavy glass frame accompanied with a copy of the magazine, where the full details of the full magazine results have been printed.

Asked how Mgahinga was voted as the greatest wildlife encounters, Gilmour said: “We gave voters a shortlist of 10 experiences to choose from.”
Lonely Planet, according to the BBC is the largest travel guide book and digital media publisher in the world.

“We are excited about the award,” said Lillian Nsubuga, the spoksperson of the Uganda Wildlife Authority.

“Mgahinga has been popularised because it has the only area (peak of Sabinyo), where you can be in three countries (Uganda, Rwanda and Democratic Republic of Congo) at the same time.”

She said at the peak of Sabinyo it is possible to stretch the hand into the DR Congo, raise the leg into Rwanda and the rest of the body in Uganda.

Mgahinga covering 33.7 square kilometres is the smallest park in the country and lies in the Virunga ranges. It also has groups of the endangered mountain gorillas with the habituated group known as Nyakagezi.

u.g boy

October 4th, 2010, 07:03 PM

Govt to borrow $100m for poverty fight
Sunday, 3rd October, 2010
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By Catherine Bekunda
and John Odyek

THE Government is to borrow $100m from the World Bank to support poverty reduction.

Micro-finance state minister Ruth Nankabirwa told Parliament on Wednesday that the funds would be used to support the eighth Poverty Reduction Support Credit programme.

The previous seven series focused on provision of support to government interventions in health, education, water and sanitation sectors, rural development and public sector management and on fighting corruption.

Nankabirwa, however, noted that even though poverty had reduced from 44% in 1997 to 31% by 2005/06, inequality still persists. “Inequality continues among regions, between the rural and urban and within cities.”
The minister said the war in the north prevented it from developing with the rest of Uganda, calling for efforts to bring it to national standards.

Nankabirwa added that the high dependency ratio of 1:12 has decreased household ability to save and invest productively.

“We need to enable our people earn enough money for investment,” she said.
Nankabirwa said other reasons for the loan were to curb the high child and maternal mortality rates and further reduce the HIV/AIDS prevalence.
She also expressed worry over Uganda’s high population growth rate.

Part of the funds will also go towards improving transport.

“We need to increase our investment in transport and energy sector to uplift our farmers, Nankabirwa said.

Speaker Edward Sekandi advised that the loan be scrutinised by the committee on national economy.

Prisoners to build sh1.2b staff houses
Sunday, 3rd October, 2010
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Byabashaija (left) after launching the construction of staff houses for prison officers at Luzira Hill in Kampala on Friday. Next to him is Zachary Owoko, the regional Prisons commander for Kampala Extra

By Charles Ariko

THE Uganda Prisons Service on Friday launched the construction of a housing project for its staff worth sh1.2b.

Dr. Johnson Byabashaija, the commissioner general of Prisons, said the project was to be undertaken by the Prisons Construction Unit.

According to him, the inmates would get construction skills on top of earning money. “The Government accepted to give us money in the 2010/2011 budget to build our own houses. If the same budget of sh1.2b is maintained over the next five years, the staff accommodation crisis in the Prisons Service will be history,” Byabashaija said.

He said in the first phase of construction, Luzira Prison would get 84 housing units, while Mbarara would get 20 units and Bushenyi 14.

David Nsalasata, the commissioner in-charge of rehabilitation, said construction of a block of houses would cost sh14m as opposed to sh32m if private constructors had been hired.

Tororo gets sh5b housing project
Sunday, 3rd October, 2010
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By Faustine Odeke
and Moses Nampala

THE construction of a sh5b housing estate in Kasoli slum in Tororo municipality has started.

The project is expected to improve the living environment, health and social values of the beneficiaries.

The housing director in the lands ministry, William Walaga, said the beneficiaries will be required to pay 10% of the total house cost over a 15-year period in order to own the houses.

He added that the Government had surveyed the land and would hand over the documents to DFCU bank, that will in turn hand them over to the beneficiaries upon payment of the loan.

Walaga said the pilot project, run under the low-cost mortgage initiative, is funded by UN-HABITANT, DFCU bank, the Government, Tororo municipal council and Kasoli Savings and Credit Group.

He was speaking during the launch of a steering committee that will oversee the implementation of the project. as agreed in the business plan.

Kaliro district gets sh9b bridge
Sunday, 3rd October, 2010
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Mbeiza showing the contract to the locals

By Doreen Musingo

THE Government has started constructing a sh9b bridge across Saaka swamp that connects Kaliro and Pallisa districts.

The project contractor, Mulowooza and Brothers Company, was on Thursday flagged off to start the works at a function that was witnessed by local leaders and residents.

Eng. Fred Kagoda, the acting assistant commissioner in charge of bridges in the works ministry, said the first phase of the project that includes constructing the bridge basement and a 600m roadbed, would be completed in 11 months.

He disclosed that the official ground-breaking ceremony is slated for October 6.

The swamp has been a hindrance to transportation between Namwiwa sub-county in Kaliro and Kasodo village in Pallisa.

Zongo Walya, the Namwiwa LC3 chairperson, said traders have been walking long distances via Tiriniyi to access the northern parts of the country to sell their goods.

He disclosed that several traders had lost their lives and property while trying to cross the swamp during rainy seasons.

Walya noted that when completed, the bridge will open a new link to other districts like Kumi and Kaberamaido.

Kaliro district Woman MP Margaret Mbeiza described Kaliro as being “landlocked” and said the bridge would open up new business opportunities and boost income-generating activities.

“Today, history has been made in Kaliro. My people have been asking the President for this bridge. I am glad that what the President promised is becoming a reality,” Mbeiza said.

Fred Matende, the Kaliro engineer, urged the residents to cooperate with the contractor so that the project is completed within the intended time.
Marian Nava, the operation engineer, promised that the residents would be given first priority of employment.

Nakasongola in fight with plywood factory
Sunday, 3rd October, 2010
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By Frederick Kiwanuka
THE district authorities in Nakasongola are at loggerheads with the owners of a newly- established plywood factory, accusing them of polluting the environment with thick smoke.

The authorities, through the environment department, have since last week asked the managers of UGAPLY to shut down.
In a recent letter to the UGAPLY managing director, Ravi Patel, Nakasongola authorities say the six-month- old factory, which opened in April, is emitting a thick black smoke which is causing breathing discomfort to residents.

“Your factory is releasing exhaust fumes that are reported by many town dwellers as irritating and causing breathing discomfort.

Other residents, including motorists, are complaining that they at times experience visibility problems due to the thick smoke which descends down the streets,” the letter added.

“You are hereby directed to halt your operations since you have failed to show commitment towards mitigating these factors,” the letter further reads.

Signed by the Nakasongola district environment officer, Jim Kunobere, the letter followed an environmental inspection conducted by a team of district officials between August 13 and 15.

The new factory produces a monthly average of 200 units of plywood and occupies an area of 35 acres at the town council.

It also employs 138 workers, 18 of whom are Indians. In a reply letter dated September 13, Patel explained that the plant was manufactured to international standards but the problem of the thick smoke was due to the surrounding topography of the area.

“The problem is arising because of the surrounding topography,” the managing director argued.

“The factory is located between two hills, which is creating a tunnel effect and forcing the smoke in the direction of the town,” Patel noted.

Under normal circumstances, Patel said, the smoke is dispersed over a long range creating a dispersed effect for the soot.

He added that UGAPLY expected to rectify the situation within two to three months,which is the time required for the smoke filtration system to be delivered and installed in the factory.

u.g boy

October 5th, 2010, 08:44 PM

Uganda gets $100m budget aid
Monday, 4th October, 2010
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By Ibrahim Kasita

UGANDA has got $100m from the World Bank in budget support to sustain its impressive economic performance and poverty reduction programmes. The money, approved by the World Bank executive directors yesterday (Monday), is the eighth poverty reduction support credit (PRSC).

It covers the 2010/11 financial year and includes the $40m provided by the bank under the pilot crisis response window to help handle challenges posed by the global economic crisis.

“The move towards a collaborative joint budget support arrangement developed by the Government and development partners is an important step towards realising effective aid,” said Paul Wade, the senior country economist for Uganda and task team leader for the operation.

“This has reduced transaction costs for the Government, increased national ownership and improved budget support transparency and predictability.” PRSC8 is the first in a series of three operations to support the country’s national development plan. It is also the first to be designed under the joint budget support framework with the Government and 10 other development partners. The new PRSC series focus on improving equity and value for money in public service delivery, with sector-specific reforms in health, education, water, sanitation and transport.

The World Bank said in a statement that the credit would supplement the Government’s resources and funding from other budget support development partners.

However, the executive directors expressed concern over the slow progress on important governance reforms and the growing corruption.

Kundhavi Kadiresan, the World Bank country manager, said PRSC8 marked a reduction in the bank’s annual direct budget support compared with previous years.

“The reduction is a reaction to the slow progress towards the establishment of a performance management system in public service and an improved public procurement law that befits international best practice,” she said.

The World Bank has provided close to $6.5b in loans and grants to Uganda since 1963, and has already committed $1.2b to finance various programmes and projects between 2009 and 2011.

The bank’s current portfolio in Uganda consists of 20 IDA-financed projects with a net commitment of approximately $1.5b.

City roads: Zzimwe gets ultimatum
Monday, 4th October, 2010
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By David Ssempijja

ZZIMWE Construction must complete the pending 45% road repairs in the city before the end of the year, Kampala City Council has demanded.

Nasser Ntege Sebaggala, the Kampala mayor, indicated that the company has done only 55% of the repairs of the sh2.2b contract they signed.

The mayor was addressing reporters at City Hall recently on the state of roads in Kampala. “The problem we have is that when Andrew Kasagga passed away, the company has not been strong as it used to be.

“But we have asked them (the people managing the firm) to quicken the repairs,” he said. Kasagga, popularly known as Zzimwe and owner of Zzimwe Construction Company, passed away early this year after he had just won the sh2.2b contract to repair the city roads.

The mayor also announced that starting this financial year, all divisions in Kampala will set up their own tender boards. “The money will now go directly to the divisions without passing through City Hall as it was previously the case. The divisions shall also manage garbage and road repairs,” Sebaggala said.

u.g boy

October 6th, 2010, 07:38 PM

Water body gets Shs175b for new city sewage plant

By Sheila Naturinda & Stephen Otage (email the author)

Posted Wednesday, October 6 2010 at 00:00

Kampala

Many pipes have in the past given way and allowed sewage leak and flow on Kampala streets, giving off a foul smell.

The plant, which is expected to be operational by 2012, will be set up in Nakivubo and it will treat about 45 million litres of both sewage and water discharge per day. Other plants will be set up in the city suburbs of Kinawataka to serve Nakawa Division parishes of Mbuya, Ntinda and Mutungo. Lubigi to cater for Bukoto, Bwaise and Kyebando and then Nalukolongo to serve Rubaga area.

Dr William Muhairwe, the corporation’s boss, while addressing a media conference at his office in Kampala yesterday, admitted that the water body had for years not paid attention to the sewerage component. The plants are expected to improve sanitation services from the current seven per cent of the city’s population to 30 per cent.

One and only
The city currently has only one sewage treatment plant located in Bugolobi. Once the Nakivubo plant is complete, according to the Kampala Sewerage Master Plan, the Bugolobi one will be decommisioned.

Uganda is said to be one of the least sewered countries in the world. According to Dr Muhairwe, in order to manage the sewerage challenge, Kampala City Council has to partner with the utility body. For instance, he said, KCC can take care of the open manholes and ensure drainage channels are cleared.

The existing sewerage network will be rehabilitated through flushing or replacement where capacities have been exceeded by demand and the system will be expanded to cover most of the Nakivubo catchment, and modified to be finally connected to the Nakivubo Sewage Treatment Works. At the same function, NWSC said it intends to charge a fine of Shs1.3 million to King Fahad Islamic Primary School in Busega, for illegal water connections at the educational institution.

Early last week, the corporation cut off Kyambogo University but the university’s water was reconnected after it agreed to pay a negotiated fine of up to Shs1.3 billion. Efforts by the police and water officials to arrest King Fahd’s head teacher were hampered by a teacher who threatened them with violence.

Jinja turning waste into manure
Tuesday, 5th October, 2010
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Manure parked in bags ready for sale at the Jinja Municipality Compost Plant in Masese recently

By Esther Mukyala

Jinja municipality has established a modern solid waste compost management facility. Although the municipality, with support from development partners, has provided garbage skips in a bid to address poor garbage disposal and ensure a clean town, there has been a problem of getting rid of the rubbish.

The municipality generates about 200 tones of garbage per day. The waste is mostly bio-degradable, and decomposes after a few days. “The volumes of solid waste are fast increasing, but garbage collection and transportation to dumping sites is poorly managed and ineffective. Some dumpsites are inappropriately located, poorly managed and merely cause further adverse effects to the surrounding environment and ultimately to human health,” a document on solid waste management in Uganda said.

As a result, the World Bank has provided $350,000 (about sh700m) for modern technology to treat the waste and turn it into compost. The National Environment Management Authority is also building the capacity of municipal councils to manage solid waste as a way of reducing greenhouse gas emissions into the atmosphere.

Jinja municipality is one of the nine municipal councils that have set up solid waste compost plants. Others are Mukono, Soroti, Mbale, Lira, Fort Portal, Kasese, Kabale and Mbarara.

Nine other municipalities will participate in phase II of the project. Earnest Nabihamba, the project coordinator, who is also the Jinja senior environment officer, said: “By creating compost, we reduce carbon dioxide and methane generation. This would be easier if communities sort their waste.”

He said the project employs about 30 workers. Nabihamba added that the municipality will benefit from three other projects to be implemented with funding from the Carbon Credits Fund through NEMA worth $20,000 (about sh50m). They are the construction of a 10,000-liter water harvesting tank at Masese Primary School, the construction of a health centre II in Danida Walukuba village, and the purchase of 200 charcoal-saving stoves for rural residents.

Wilberforce Kigumba, the site manager, said compost is safe for agriculture and was tested and certified by Makerere University. He observed that with the establishment of a compost plant, the town had become cleaner because garbage collection is done on time.

He, however, warned people who dispose of waste indiscriminately, and appealed to residents to have dustbins at household levels. Kigumba also called upon farmers to make use of the manure, adding that a tone goes for just sh20,000.

Gulu-Juba rail link underway
Tuesday, 5th October, 2010
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BY IBRAHIM KASITA

-The $3b investment will help open up regional markets
-It covers 725 kilometres
A German-based firm, ThysssenKrupp, is to head a multi-billion railway project that will link Gulu in northern Uganda with Juba, the capital of Southern Sudan, highlighting increasing investment appetite in the Great Lakes region.

The huge infrastructure investment, estimated to be between $2b and $3b, will cover laying the rail network, covering about 725 kilometres, helping open up regional markets for more cost-competitive import and export of commodities.

“Constructing improved haulage links promotes economic upswing and lower prices for consumer goods and additional jobs are created,” Stefan Ettwig, the firm’s spokesman, said.

“Railways are needed for transporting the (region’s) abundant mineral resources.”

The announcement comes at a time when the Great Lakes region comprising 11 countries including Uganda, Kenya, Tanzania Rwanda, Burundi, Southern Sudan, and DR Congo are facing high transport costs due to an inefficient rail network.

Studies show that transport between Uganda and Kenya alone costs more than $0.13 per tonne/kilometre due to heavy reliance on trucking. This has skyrocketed the cost of doing business in the region.

ThyssenKrupp, the world steel maker, is involved via its Gleistechnik subsidiary, along with the US firm, Ayr Logistics, and the Russian engineering firm MosMetrostroy.

An option for an extension of the line to Wau in southern Sudan and links to Kenyan and Ethiopian networks is under consideration.

The existing Uganda-Kenya railway network was sold to a consortium known as Rift Valley Railway, which has been embroiled in power struggle, which has stalled the desired rehabilitation and improvement of the railway system.

The shareholding is composed of Citadel Capital, Trans Century, Mirambo Holdings, Prime Fuels, Austrialia’s Babcock and Brown, plus a Ugandan investor.

Businesses are frustrated that while rail transport is cheaper than road, most cargo is being hauled on road, denying them the edge in a regional market that is becoming increasingly competitive.

The long chain of transportation makes Uganda vulnerable to any problems arising along the way, and immediately results into delays in supplies delivery, causing shortages and artificial price hikes

The Uganda-Sudan railway idea was conceived in 2004 after a feasibility study.

u.g boy

October 7th, 2010, 05:39 PM

Matugga-Kapeeka road works on course - UNRA
Wednesday, 6th October, 2010
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on schedule: Workers putting final touches on the road’s drainage channel

By Samuel Balagadde

THE construction of the 42km-Matugga-Semuto–Kapeeka road is on course and will be completed as planned, Dan Alinange, the Uganda National Roads Authority (UNRA) spokesman, has said.

“The road will boost the general livelihood of the Luweero Triangle communities, which were severely affected in the 1980s liberation war. They will now be able to sell their produce as access to the market will be made easy,” said Alinange.

He said the transport cost for both passengers and goods is expected to reduce with the completion of theis road.

“Local communities have again benefited more with the road as many are being employed as manual workers.”

China Chongqing International Construction Corporation is undertaking the project, which started in 2009 and is expected to be completed in December.

The Government has in the last three financial years allocated trillions of shillings to improve roads in the country.

Lack of regulation dogs housing sector
Wednesday, 6th October, 2010
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By David Ssempijja

THE real estate in Uganda has grown tremendously in past decade, with many estates being set up, especially in the Greater Kampala Area.

Although the sector deals with a number of developments, the most critical include managing land and the fixed assets on it, especially residential and commercial buildings.

This, therefore, calls for proper regulation to keep the sector’s growth rate and promote focused infrastructural development.

Rational real estate development is measured on consistence and compliance with laws that guide the development of particular fixed assets for different purposes.

Experts note that because Uganda’s real estate industry is young, some people assume that it is on the right track by just counting the rising number of commercial and residential buildings in particular locations. But they ignore issues like orderliness under which the estates are set up in relation to how they are supposed to be, including the social amenities in those places.

“Yes, numbers are very important in measuring the level of real estate development because we are fighting to address a housing deficit. However, numbers have to be backed by acceptable standards in line with the type of land use.

“This determines what type of structures one can build in a given location and their form,” Shem Bageine, the director of Bageine and Company, one Uganda’s oldest real estate consultancy firm.

Bageine was presenting a paper on the theme “Opportunities and challenges of investing in real estate in Uganda” during the recent Institute of Certified Public Accountants of Uganda’s annual seminar at the Imperial Resort Beach Hotel in Entebbe.

The state of the real estate industry in Uganda
Despite the high growth rate, the country’s real estate industry can easily win a gold medal in disorderliness in the East African Community.

Hardly do developers observe laws that govern the industry.

It is, therefore, not a surprise that some factories are built in the middle of residential houses, experts say.

Rwanda and Kenya, on the other hand, enforce land management laws, putting their sectors a step ahead of Uganda as developments are done according to national plans.

In Kampala, for example, complying with laws governing construction is almost optional.

Whereas all sky rise buildings in the city must reserve basements as car parking lots, most developers disregard it. Never mind that the number of cars in the city has gone up.

Bageine, however, says the problem is partly historical. “Kampala was planned within the 1964 Town and City planning law. “It was designed to cater for the population that existed then, yet Uganda’s population was hardly six million. In rational real estate planning, the future generation has to be put into account,” he says.

He adds that the country has a challenge of making sure that the housing deficit, estimated at over one million units, is addressed to absorb the spiraling population.

The other biggest challenge in real estate industry, according to Bageine, is the high cost of mortgages. Banks involved in mortgage financing charge 15-16% interest per year against 12-13% in Rwanda and Kenya. dfcu Bank and Housing Finance Bank are the country’s leading mortagage financiers, but most of the other banks also provide mortgages.

“These problems are made worse by unprofessional and unregulated players in the industry, who defraud clients, especially in land transactions,” he says.

What needs to be done?
On the mortgage interest rates, Bageine argues that with a liberalised economy where market trends are driven by forces of demand and supply, the Central Bank should institute monetary measures to ensure that banks are well capitalised and do not depend on customer savings.

Low-cost housing programmes, spearheaded by the Government, would help more people acquire shelter, but they are ineffective. Lack of low-cost houses accounts for 65% of the housing deficit in the country.

“We can have many local and foreign investors in the sector, if the Government provides free land, they can build houses for low-income earners that could cost sh50m. Such an initiative would attract banks to finance the projects and the beneficiaries would pay in, say in 10 years,” says the expert.

Government’s plans
Daniel Omara Atubo, the lands, housing and urban development minister, says the Government will start enforcing real estate development laws strictly.

“The industry is bogged by developers, who disregard physical planning guidelines.

“We have placed high priority on physical planning, but we shall emphasise on urban areas so as to put to an end the current unplanned urbanisation,” he said.

Atubo was recently opening a construction and interior design exhibition, held at the UMA exhibition hall in Lugogo, Kampala.

The minister promised that the Government would operationalise the physical planning laws next year.

“The 31 million people in Uganda still pause a big physical planning threat. We also need to plan for the 69 million more people Uganda is expected to have in the next 40 years,” he said

The minister disclosed that 100 urban centres had been planned across the country to promote the modern urbansation process.

“The Government has also developed a national slum upgrading strategy to provide a guideline to improve living conditions in slums and informal settlements in urban areas,” Atubo added.

In 2008, President Yoweri Museveni launched the National Land Use Policy under the theme “Land Use Policy to support modernisation through planned land use, urbanisation, industrialisation and a developed service sector.”

The goal of the policy is to achieve sustainable and equitable socio-economic development through optimal land management and utilisation in Uganda.

Uganda’s future is in agro-packaging
Wednesday, 6th October, 2010
http://www.newvision.co.ug/NP/1286361274fabian.jpg
President Museveni (3rd right) and Prof Bukenya (2nd left) with Khalid Sheikh between them in a recent photo

By David Mugabe

STALLS E-5 and E-6 at the Lugogo main exhibition hall for this year’s UMA international trade fair will be the host of some ground breaking packaging products for Uganda’s largely agro-based economy.

The stall run by Sheikh Khalid, a member of the Presidential Investor Roundtable (PIRT) is a culmination of back to back visits by President Museveni to Clifton Packaging in London, where Khalid is chairman and subsequent visits by the Clifton team to Uganda in 2009.

PIRT in which Khalid was appointed by the president till 2013 comprises the cream of Uganda’s elite business people and some partner agencies like the World Bank who advise government on how to improve the business competitive environment.

Among the products that will be displayed will be dried fruits, tea, coffee, ground nuts, simsim and maize seeds.

With support from Government, Clifton intends to have these products on the shelves of all the streets, shops and retails stores and ultimately export them to foreign markets as finished items with more value due to the high class packaging.

Uganda is world famous for producing the best organic products as well as having the potential of being Africa’s food basket in this era in which the world’s food security is at risk. But most of the products are often exported as unprocessed raw materials fetching the country almost no value.

President Museveni, a fierce advocate of trade and not aid for Africa refers to these dealings with the west as the new face of colonialism.

“I have remained resolute in advocating for a complete transformation of our economies in Africa to stop “donating” value to the West by exporting raw unprocessed goods and unprocessed energy,” said Museveni last Friday at the 11th President’s exports awards.

Uganda’s exports statistics affirm this -six of the 11 main export products for Uganda in 2009 were in the agriculture sector. These included coffee, fish and fish products, tea, tobacco, animal and vegetable fats and oils, sugar and sugar confectionery.

Also, the non traditional sectors that have overtaken traditional products like coffee and tea are predominantly agriculture products.

Direct investment in these sectors according to observers is significant for the country to exploit its agriculture resource base.

There is limited investment in packaging materials with the sector mainly dominated by makers of corrugated materials.

“Whereas our parents left in 1972 as shopkeepers, we are proud to return with our expertise and delivering best practice,” said Khalid.

According to Khalid, the project that will also involve students of Makerere University’s faculty of food science and technology will create a chain right from the farmers who will cultivate the farm products, to the packaging, marketing and then distribution stage.

After the trade show which ends next week, it is expected that Clifton will ship some machinery and then sign some agreements with individuals who will be involved in the different stages of the value chain.

“We will be judged when our products are displayed on the market. How much we put into Uganda will be determined by what we are getting from the market,” said Khalid at the exhibition

Clifton, under the Buy Africa Build Africa (BABA) brand, will compliment current attempts by enterprises like Britannia, Mukwano who are all involved in processing and packaging of fruits and agricultural products and exporting to the region. This is a big step to the direction of complete transformation because according to experts, everything in Uganda is ready for packing.

“We are confident that we can provide a complete chain from source to the stores,” said Khalid.

“Uganda is the third largest producer of bananas but more than 67% goes to waste,” Khalid observed.

The long term objective is to take packed goods out of the country.

“We are bringing entrepreneurial flair and the art of delegation which is the secret of our success in the U.K. It is not about coming here to open a shop.

In the five months in which Khalid has been in Uganda, he identifies transport and commercial discipline as Uganda’s main obstacles.

Khalid is a Ugandan-born British national who fled Uganda when Idi Amin expelled Asians some 30 years ago. Arriving in England as refugees, Khalid and his brothers have gone on to establish one of the largest packing firms in England.

Ecobank on board to sponsor league

By James Ssekandi (email the author)

Posted Thursday, October 7 2010 at 00:00

Super league

Kampala

After a long wait, the Ugandan league has finally secured a sponsor in Ecobank. The Pan African bank announced their partnership with the Uganda Super League (USL) yesterday during the signing ceremony at their head office in Kampala.

Announcing the Shs200m ($95,000) package, the Ecobank managing Director Dele Alabi said that they realise the foundation of Ugandan football is in the league and that’s why they have decided to sponsor it. “We are all well aware of the challenges Ugandan football has been facing, but we would like to give back to our clients many of whom are football lovers,” he added.

Mr Alabi said by sponsoring the league, Ecobank would like to motivate more youth to embrace football and provide a feeder system for the national team. He said the sponsorship is also in line with two of the pillars of the Ecobank Group’s corporate responsibility strategy which is sports and youth development.

The Ugandan league aspiring to get professional this season has spent the last three years without a sponsor. Mr Fred Muwema, a director of USL thanked Ecobank for allowing to come on board at short notice and guaranteed them that they will ensure total cooperation, professionalism and a mutually beneficial partnership.

Muwema said the partnership will go a long way in bringing professionalism to the game and trust from all stakeholders that football finally is headed in the right tunnel. “The sponsorship will cater for all the logistical aspects of the league interms of paying match referees, branding at stadiums and advertisement among others’” explained Muwema.

u.g boy

October 8th, 2010, 05:50 PM

Ugandans should learn Chinese – Bukenya
Thursday, 7th October, 2010
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Bukenya (centre) being shown the goods at the Tianjin Trade fair yesterday

By Vision Reporter

THE Vice-President, Prof. Gilbert Bukenya, has urged Ugandans doing business in China to learn Chinese so that they can trade effectively without depending on interpreters.

Bukenya said since China is the emerging trading partner with Africa and an exemplary model of development, it would be good for Uganda’s education curriculum to incorporate Chinese.

He argued that Ugandans would also learn about technology, health, value addition and agricultural research, where China had excelled. This was contained in a statement issued by the Vice-President’s Office.

Speaking on Wednesday during the launching of the three-day Tianjin Trade Fair in Africa at Hotel Africana in Kampala, the Vice-President said bilateral cooperation between Uganda and China had helped Ugandans to acquire skills that had translated into self-employment and the growth of small-scale enterprises.

He noted that this was changing the country’s economy from being agriculture-based to an industrial one.

Bukenya commended the Chinese government for injecting $251m into Uganda’s economy in foreign direct investments, and also extending zero tariffs on Ugandan exports to China.

He said the continued bilateral relations with China would help Africa and Uganda in particular, to stop relying on aid from multi-national companies that come with strings attached.

Bukenya called for more cooperation in science and technology transfer, sports, security systems, agriculture and industrial modernisation.

The Chinese ambassador to Uganda, Sun Heping, said China attached great importance to the self-reliance of Africa.

He added that it was committed to trading with the continent, supporting programmes aimed at poverty eradication, mitigating climate change and the modernisation of agriculture, which were agreed upon in the November protocol in Egypt last year.

The fair is being organised by the Northern International Group, the Tianjin Commission of Commerce and the Tianjin State owned Assets Supervision and Administration Commission.

Bad machines delay Koboko road works
Thursday, 7th October, 2010
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The Koboko town road which is being tarmacked

By Andrew Cohen Amvesi

FAULTY road construction machines and interference from the community are the major factors hindering the completion of a 0.9km-road tarmacking project in Koboko town.

According to the town engineer Amos Avutia, the project, was supposed to be completed in three months.

“Despite the work starting late by some two weeks, machines were on and off. Some locals also kept on disapproving some of the technical proceedings of the work, demanding to see the work plan of the project,” said Avutia.

He called upon the local community to address their grievances through his office and that of the town clerk.

The project foreman, Edward Mwanga, said the machines had been repaired and that the work would be completed this month if the weather did not affect its progress.

Margaret Sakaya, a hotel operator on the street being tarmacked, was grateful for the project.

“We used to suffer so much with the dust on our food day and night. I hope this development will help us come out of this problem and get more customers,” Sakaya said.

Koboko town council works chairman, Vanancio Wayi, commended the workers of the project.

“We want work that will be appreciated, unlike some companies which come here and only do shoddy work,” Wayi said.

The project, funded by Japanese International Co-operational Agency with some funds from the Poverty Alleviation Fund, is to cost sh439m.

uganda's economy to grow 6% in 2011
Thursday, 7th October, 2010
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By sylvia Juuko
in Washington DC

UGANDA'S economy will grow by over 6% in 2011, from 5.8% in 2010, the International Monetary Fund (IMF) said in a report.

The World Economic Outlook 2010 report noted that growth in low-income economies of sub-Saharan Africa, like Uganda, would be driven by domestic factors and the pace of global recovery.

“The primary risk to the outlook for sub-Saharan Africa is a faltering global recovery. Spillovers from the global slowdown will manifest through exposure of their exports to Europe, which is about one third of total exports,” the report released on Wednesday in Washington DC, showed.

However, the IMF projections are slightly lower than the Government’s 6.4% economic growth forecast for this fiscal year. The report notes that growth in Africa would accelerate to 5% in 2011, supported by recovery in exports, commodity prices and robust domestic demand in a number of economies.

This positive outlook in emerging markets contrasts the low growth projected for advanced countries of 2.7% this year and 2.2% in 2011.

The IMF said while world economic recovery was noticeable, it was geographically unbalanced, with sluggish growth in advanced economies, but much stronger growth in emerging and developing countries.

“The weakness of consumption and parts of investment in most advanced economies reflects both a correlation of pre-crisis excesses and scars of the crisis. US consumers, who had over-borrowed before, are now consuming less,” said IMF’s Olivia Blanchard.

A slow-down in the global economy should be a concern to Uganda because it has an effect on our exports, private flows and aid. Already, the Central Bank preliminary data shows that formal export proceeds for July were 9.3% lower than June, fetching $123.2m, from $135.7m, with a decline in mainly the non-coffee exports.

The IMF recommended an accommodative monetary policy for countries where private demand is weak. It added that governments must continue financial repairs and reforms as well as engage in fiscal consolidation.

In emerging economies, the IMF suggests that large current account surpluses must accelerate rebalancing.

“This is not only in the world’s economy’s interest, but also mainly in their own. Large capital flows are pushing these countries in the right direction. Unless offset by reserve accumulation, they will affect the exchange rate.” Blanchard noted.

Ivory Coast to grace CECAFA tourney
Thursday, 7th October, 2010
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By Finny Muyeshi
in Dar es Salaam

IVORY COAST and Cameroon will grace this year’s CECAFA Senior Challenge Cup to be held in Dar es Salaam, Tanzania in November and December.

This was confirmed in Dar yesterday by the CECAFA secretary general, Nicholas Musonye during the launch of the tournament set to bring together at least 12 nations.

Ivory Coast have confirmed that they will bring a home-based outfit while Cameroon will confirm their position in a week’s time. There is also a request for participation from Zambia, regular campaigners in this regional tournament.

Musonye said all the 11 member countries will take part in the tournament to run from November 27th to December 11th.

“The visiting teams will surely spice our tournament and I can guarantee you a great football feast,” Musonye said at the event that also saw Serengeti Breweries announce a major sponsorship for the event.

The brewers are putting $450,000 into the tournament. The money will go into the air transportation of teams, accommodation, local transport and logistics.

“With the Serengeti sponsorship we intend to make this tournament the best ever,” Musonye told the press.
CECAFA president, Leodegar Tenga, who is also the president of the Tanzania Football Federation, was also present.

Tenga urged other corporates to top up the budget which he said was close to US$700,000.

Uganda, winners in Nairobi last year, are the defending champions and they will lead the regional challenge that will also include Kenya, Rwanda, Burundi, Tanzania, Zanzibar, Ethiopia, Sudan, Somalia, Eritrea and Djibouti.

u.g boy

October 11th, 2010, 12:21 PM

Government sets up job centre
Sunday, 10th October, 2010
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President Museveni and First Lady Janet talk to guests during the launch of the youth project at State House Entebbe

By Milton Olupot and Francis Kagolo

THE Government, in partnership with the private sector, is to set up a call centre where jobs will be sourced out on the Internet to about 2,000 Ugandans. The centre will be ready by December this year.

The call centre is an initiative of the Uganda Youth Convention (UYC) and other Ugandan entrepreneurs to address the problem of job scarcity, especially for the youth.

Odrek Rwabwoogo, the UYC chairman, yesterday said the initiative would partly get funding from the Job Stimulus Programme in the finance ministry, while the private sector would give additional funding.

He, however, said the location of the centre was yet to be finalised.

America and Canada, Rwabwoogo said, would provide the jobs in the sectors of airlines, insurance, banking and energy.

He was hopeful that the centre would start operations on December 1. The jobs are expected to grow from 2,000 to about 6,000 by the end of 2011.

Early this year, UYC converged about 2,000 youths from all districts of Uganda and trained them on entrepreneurship and job creation. These youth are expected to be part of the first 2,000 beneficiaries in the project.

President Yoweri Museveni, speaking at a dinner on Saturday where he hosted enterpreneuers and dozens of youth at State House Entebbe, hailed the call centre initiative.

Earlier in the day, he launched a textbook on patriotism for secondary schools at the celebration of the 48th independence anniversary at Kololo Airstrip.

Museveni distributed copies of the book to selected secondary schools in Kampala to symbolise the start of the long-awaited course.

At the dinner, Museveni launched a campaign to sensitise the youth to be patriotic, peaceful and enterprising. The campaign was dubbed “I am Ugandan: Just, Productive, Orderly and Patriotic”.

Citing businessman James Mulwana, whom he said depends on Ugandans to buy his products, the President said everyone has to depend on other people to prosper.

“You have to love Uganda because you need it. When Mulwana loves Uganda, he doesn’t do so out of altruism because it is beautiful; he needs Uganda to be prosperous.”

Museveni described those opposed to the patriotism campaign as backward and ignorant.

“When somebody walks into your shop, do you ask him his clan or tribe?” he asked. “Europeans were clever. They knew they needed each other and formed the European Union. This is what Africans need to discover.”

This financial year, the Government allocated sh10b for patriotism classes in schools.

Museveni said the Government would use the over 5,600 government and privately-owned secondary schools to champion the patriotism campaign.

The dinner included live performances from artistes like GNL Zamba, Lillian Mbabazi of Blu3 and Richard Kaweesa of Band-it.

GNL’s music captivated the President so much that when he came to deliver his speech, he spent about three minutes rapping in Runyankore.

The President said the youth would appreciate Uganda most if they engaged in income-generating activities.

“Look at the Somalis, they are one people — all are Muslims — but because they are still at the same level of grazing goats, they don’t see the importance of Somalia. If I am grazing goats, I need only one hill; I can’t see the importance of my country. But if I they become like Mulwana and produce goods like batteries, they will begin to appreciate one another,” he noted.

He identified six categories of jobs where the youth can work, including agriculture, industry, public service and self-employment.

Different personalities received awards for supporting the youth convention.

Forestry body gets new board
Sunday, 10th October, 2010
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WATER and environment minister Maria Mutagamba has inaugurated a new board of directors for the embattled National Forestry Authority (NFA).

However, save for two, the board mainly comprises of old faces who served during Damian Akankwasa’s reign as executive director.

Akankwasa was recently sacked on recommendations of the Inspector of Government over abuse of office, failure to declare his wealth and causing a financial loss of over sh2.8b to NFA through suspicious deals.

In the new team, Makerere University forestry management specialist, Prof. Mukadasi Buyinza, replaced Baguma Isoke as board chairman.

Buyinza, who was also a board member during Akankwasa’s term, is the deputy director of Makerere’s school of graduate studies and a former head of the department of community forestry and extension. He holds a PhD in forestry management from Indonesia.

The two new board members are Shira Kawamala, a private tree planter and former East African Community legislator, and Ponsiano Besesa, one of the leading commercial tree farmers in the country.

Mbale gets govt laboratory
Sunday, 10th October, 2010
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By Paul Watala and Patrick Jaramogi

DISPENSATION of justice is expected to be expeditious following the commissioning of the regional government laboratory in Mbale yesterday.

The laboratory, which was constructed with the support of the Justice Law and Order Sector at a cost of sh1.5b, is located in Maluku, the Mbale district headquarters.

The laboratory, the second to be opened after the Government Analytical Laboratory in Wandegeya, will serve the 40 districts in eastern Uganda.

Internal affairs state minister Matia Kasaijja said the laboratory would boost the fight against fraud, bribery and counter-terrorism in East Africa.

“We are integrating, but the integration process will come with challenges such as high crime rates. This centre will help us address that and boost trade as traders will use this facility to get certificates of competence for their products,” he said.

Kasaijja warned the staff at the centre to desist from collecting fees from citizens who demand for services.

The deputy Inspector General of Police, Julius Odwe, said the lab would help the Police reduce case backlogs.

“We used to spend time and money taking exhibits for analysis in Wandegeya. This facility will help us boost our evidence presentation in courts,” Odwe said.

He said the laboratory would also stop the Police from depending on eyewitnesses for evidence in court: “We shall have science-based evidence coupled with scientific facts and truth,” Odwe said.

The acting director of the government analytical laboratory, Ally Lugudo, said the centre would be instrumental in detecting biological crimes, including poisoning.

“The facility will conduct forensic and ballistic investigations involving murder and check the quality of food, water, beverages and drugs,” Lugudo said.

He said it would also help in investigating causes of fire outbreaks, gas poisoning and chemical toxicology.

Lugudo stated that pathology tests and post-mortem examinations, including ascertaining cause of death in birds and animals, can now be conducted in Mbale with ease.

He said similar centres would be opened in Gulu to cater for northern Uganda, and in Mbarara to cater for the western region.

Mbale district chairperson Bernard Mujasi said the centre would help fight the issue of men who deny paternity.

The resident judge, Stephen Musota, appealed to the staff to follow their professional ethics and avoid bribes.

Musota urged them to provide evidence in time so as to help the judiciary carry out prosecution.

He said over the years, criminals had been set free because the judiciary sometimes failed to provide evidence due to lack of technology.

Australia joins suitors of Uganda’s oil
http://www.monitor.co.ug/image/view/-/1030290/highRes/202994/-/maxw/600/-/8apog3z/-/news002pix.jpg
NEW DEAL IN OFFING: Oil experts discuss an issue recently. Australia has indicated that if all goes well, its companies will come to Uganda and explore its oil. FILE
By Robert Mukombozi, In Brisbane (email the author)

Posted Monday, October 11 2010 at 00:00

The Australian government has announced plans to venture into Uganda’s oil market, promising mutual benefits. Mr Stephen Bohnen, the executive officer, Department of Foreign Affairs and Trade in Queensland, has said his government has finalised plans to engage the Ugandan government over prospects of including it among the partners, especially in the oil sector.

Cordial relationship
“We have a cordial relation with Uganda and the delegates here have brought to our attention that there are opportunities for us to enter into Uganda’s oil industry. We are engaging in high level talks to come out with an agreement,” he said during celebrations to mark Uganda’s 48th independence anniversary in Brisbane on Saturday.

Mr Bohnen, who represented Australia’s Foreign Affairs Minister Kevin Rudd, said the high profile dialogue would enable both countries come out with a comprehensive agreement that would ensure they benefit mutually from the oil deal.

At various levels of negotiation, he said, the Australian government was involving the major stakeholders-the mining magnates.

“We are involving and will continue engaging our miners to be able to identify where they would want to put their investments in Uganda’s oil business,” said Mr Bohnen.

The Ugandan High Commissioner to Australia, Dr James Lukabyo, said the venture would be a major boost in both countries’ trade and diplomatic relations.

“We have had tremendous talks with the Australian government over this issue for many years. We are pleased with this country’s continued co-operation,” he said, adding that the first round of talks attracted Hardman Resources, a giant Australian mining company into Uganda’s oil industry.

Dr Lukabyo, who is also Uganda’s High Commissioner to New Zealand and South Pacific Islands, said the new round of negotiations with the Australian government would yield bigger investments.

Other interests
Dr Lukabyo told the Daily Monitor in an interview that Uganda should also be able to reap big from copper minerals, which he is fronting alongside the oil stake. He said the country is endowed with huge deposits of copper in Kilembe on the Uganda- DR Congo border.

Uganda’s oil was discovered by an Australian Company, Hardman Resources, under Lake Albert. In Uganda, Tullow oil estimate that there is 700 million barrels of oil under Lake Albert.

And according to Dr Lukabyo, Uganda needs only 11,000 barrels of oil per day, meaning foreign companies are interested to enter the market to develop commercialisation options such as exports of oil to international markets, especially at this time when more has been discovered in other areas such s Western Uganda.

Libya to become top investor in Uganda
Sunday, 10th October, 2010
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By Joe Nam

LIBYA will soon top the foreign investors list in Uganda, its ambassador pointed out last week. “Libya now ranks second among countries with the most investment in Uganda.

We are soon jumping into the first position and will invest heavily in Uganda towards this end,” Abdalla Bujeldain said at the celebrations to mark the 41st anniversary of the Libyan Revolution in Kampala.

Listed as second by Uganda Investment Authority, after the UK and ahead of Kenya, in the list of Top Ten Sources of Foreign Direct Investment by value of Investment since 1991, Libya has to date invested over $375m in eight companies, including uganda telecom, National Housing Corporation, Soluble Coffee Plant, Tropical Bank, Lake Victoria Hotel and Tamoil East Africa.

Tamoil has already won a $100m deal to construct an oil pipeline from Eldoret in Kenya to Kampala. Bujeldain said Libya was eyeing all the lucrative sectors from agriculture and oil.

“We aim at building an economically powerful African continent. Libya is highly experienced in the oil industry.”

Uganda could attain MDGs by 2015 - World Bank
Sunday, 10th October, 2010
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By Ibrahim Kasita
UGANDA is among the few Sub-Sahara African countries in the course of achieving the millennium Development Goals (MDGs) by 2015, the World Bank vice-president for Africa region, has said.

“If Uganda doubles its efforts, it will attain the MDGs by the year 2015,” Obiageli Ezekwesili said recently.
Ezekwesili was briefing the African media last week via video conference on the importance of the just-concluded MDGs summit and the World Bank’s commitment to achieving them.

This underscores the Government commitment to implementing prudent policies and reforms despite the global economic crisis.

Her remarks come at a time when the global economic recovery is on a slow motion as the World Bank preliminary forecast suggest global gross domesitic growth of 3.5% in 2010, slowing to 3.3% in 2011.

The economic outlook for sub-Saharan Africa has withstood the waves of the global recession. Economic growth is projected to expand to 4.9% in 2010 from 1.8% in 2009.

Growth is likely to be sustained at about 5% in the next two years.
Factors driving the region’s performance are commodity prices, particularly energy and base metals which have boosted growth in resource rich countries.

Merchandise exports have rebounded while services trade also has grown.
According to the World Bank’s economic outlook, Uganda, Cape Verde, Ghana and Tanzania were named as the few sub-Saharan Africa countries that “consistently had strong policies.”

The World Bank, Ezekwesili said, asserts that economic growth is necessary to closing the gap on MDGs.
“Evidence shows that rising income is closely associated with progress on the development goals,” she said.

“As the countdown to 2015 begins, sub-Saharan Africa is well positioned to strengthen momentum on achieving MDGs,” she added.

u.g boy

October 11th, 2010, 12:46 PM

China donates sh1b malaria drugs to Uganda
Sunday, 10th October, 2010
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By Josephine Maseruka

THE Chinese government has donated anti-malaria drugs worth sh1.25b to Uganda. The drugs were officially handed over to health state minister Dr. Richard Nduhura on Friday.

This is the fourth donation of anti-malarial drugs from the Chinese government at the request of Uganda in an attempt to cut down on the estimated 320 daily deaths caused by malaria.

According to the Uganda Bureau of Statistics, between 70,000 and 110,000 annual child deaths are due to malaria.

Handing over the consignment, the Chinese ambassador to Uganda, Sun Heping, said medical care and health were a priority in the China-Africa cooperation.

“African people have long been plagued by malaria. To help them improve health care and enhance the capacity to prevent malaria, treat it and deliver better health services to the people, China has intensified its efforts to cooperate with African countries in the field of health over the past three years,” Heping said.

He also commended the good relations between Uganda and China. China is constructing a hospital and malaria research centre in Naguru, a Kampala suburb.

“We will also continue to provide Uganda with medical equipment and anti-malarial resources to improve the capacity for diagnosis and treatment, and to ensure that China aid projects are sustained to better serve Ugandans.”

Nduhura thanked the Chinese government for continued support to Uganda in many fields, including the construction of the Naguru hospital.

Malaria accounts for 40% of Uganda’s public health expenditure.

The Government is distributing free treated mosquito nets to households and introduced free anti-malarial drugs to its health centres across the country to contain the disease.

u.g boy

October 12th, 2010, 05:31 PM

Gov't releases sh60b for SACCOS
Monday, 11th October, 2010
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By Mary Karugaba & David Ssempijja

THE Government, through the Microfinance Support Centre, has launched a $27m (sh60b) project to help the rural poor access financial services.

The rural income and employment enhancement project, jointly funded by the African Development Bank and the Islamic Development Bank, is targeting about 1.4 million poor people.

The project is expected to generate 1.4m employment opportunities for rural clients through the provision of loans and enhance skills through training and business development services and bring about positive changes in business growth, high return on capital and increased household incomes for the rural population.

Speaking at the launch, the finance minister in charge of microfinance, Ruth Nankabirwa, said the money will be channelled through the Rural Financial Services Programme, the Microfinance Support Centre Ltd and the Uganda Corporative Savings and Credit Union.

To access the money, individuals must belong to an established Savings and Credit Cooperative Society (SACCO).

The SACCO also must be legally registered, have clearly defined areas of operation, clear ownership and governance structure and should have products for onward lending.

The chairperson of the Microfinance Support Centre, Dr. Specioza Wandera Kazibwe, emphasised that the project is an important input to the centre’s 2009-2014 strategic plans.

The plan comprises two key components – the Financial Services and Institutional Development Services.

Under the financial services component, an estimated 1.4 million rural clients, of whom 50% are women, will be reached, while maintaining gender parity and disbursing some 2,934 loans through financial intermediaries.

The component on institutional and business development services will strengthen the capacity of 1,000 intermediaries and provide business development skills to some 3,000 staff together with a performance evaluation mechanism.

“The strategy is hinged on the intervention cycle, which puts emphasis on savings, credit and investment in productive activities to improve production and processing of value addition, as well as market access,” Nankabirwa said at the launching ceremony.

The Government initiated the project to guide the development of the financial services delivery in rural areas. The money was approved by Parliament in May 2010.

The project is scheduled to run for five years. It comes after the poverty alleviation project (1994-1998) and the rural microfinance support project (2000-2008), which were both supported by the ADB. A total of sh22b was lent out to over 70,000 clients under the two projects.

Nankabirwa assured the representatives of the banks that funded the project of the Government’s commitments to account for the money and also to ensure that it reaches the intended beneficiaries.

She noted that some Muslims had negative perception about borrowing money with interest. “I call upon the Muslims and all other Ugandans to take the opportunity and access this money though their rural financial organisations. You note that the money was given by the Islamic bank. We shall also try and reach the urban poor,” she said.

Africa Development Bank representative Patrick Khaemba noted that studies conducted on Uganda’s microfinance industry in 2007 and 2008 indicated that 62% of Ugandans have no access to financial services and 50% of the credit demand by the rural population has not been met. Approximately, 70% of the rural population, especially women, are without access to financial services, Khaemba noted.

“ADB has been supporting microfinance development in Uganda since 1994 with the aim of facilitating access to affordable financial services to the rural poor,” he said.

The sh60b boost comes at a time the Microfinance Support Centre (MSC) is boasting of disbursing over sh66b to its clients estimated at 1,475. These clients include savings and credit cooperative organisations (SACCOs), unions, small and medium enterprises and microfinance institutions.

MSC is government-owned and incorporated in 2001 as a company limited by guarantee. It is the linchpin of Uganda’s micro-credit programmes serving to implement the rural financial services programme.

The firm facilitates access to affordable, sustainable and convenient financial and business development services to active and productive Ugandans.

It also supports legally established entities engaged in agricultural value chain, production, processing and marketing.

According to the executive director of the Microfinance Support Centre, Charles Byanyima, the project was conceived on the factors affecting rural financial intermediation, which include the absence of strong retail capacity in microfinance institutions, extending access to financial services to rural areas, and weak infrastructure.

“(It) will contrite towards poverty eradication in rural Uganda by facilitating access to and utilisation of affordable financial and business services,” Byanyima said.

Economy to grow 8% - Mutebile
Monday, 11th October, 2010
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By S. Juuko in Washington DC

Uganda’s ecomony will grow at about 8% next year because of a low inflation rate, the Central Bank governor, Tumusiime Mutebile, said on Friday. Mutebile was reacting to the International Monetary Fund’s World Economic report that forecast inflation at 6.1% next year.

Uganda’s inflation rate is currently at a 10-year historical low. “Economic growth will be more. I think it will be about 8% in 2011. Inflation will still be low. Currently, it is 0.3% and I don’t see anything in the near future to make it go up again.

“It will be below 5% and this should help growth to take place,” he said in an interview on the sidelines of the International Monetary Fund and World Bank conference in Washington DC.”

Mutebile said the low Inflation would drive more investment, which will in turn help Uganda realise more growth. Uganda’s annual headline inflation rate reduced to 0.3% in September compared to 1.7% in August.

Annual core (underlying) inflation rate, which excludes food crops, fuel, electricity and metered water, went up slightly to 4.1% in September compared to 4.0% in August.

The Central Bank targets core inflation for its macro-economic policy management. Speaking about the risks to economic growth posed by a sluggish recovery of global economic growth, Mutebile suggested that foreign aid would likely be hit as developed countries undertake fiscal adjustment.

“It will mean less aid and even remittances. Uganda must prepare to increase tax revenues to replace the foreign aid that may not come through due to these developments,” he added.

The governor noted that macro-economic stability was crucial in addition to improving foreign exchange reserves. “We should build up international foreign reserves so that we can insulate the country from shocks,” Mutebile explained.

The Central Bank has since August 2010 made daily purchases of $500,000 from the foreign exchange market to strengthen its foreign reserves.

Uganda stall at Shanghai expo pulls 18 million visitors
Monday, 11th October, 2010
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Crowd puller: Uganda Export Promotions Board boss Florence Kata (right), Rukundo and a Chinese official pose with an effigy of the mountain gorillla at the Uganda stall at the Shanghai expo

By David Mugabe in Shanghai China

The spotlight at the ongoing Shanghai expo in China turned on the Uganda stall on Saturday as Ugandans at the show marked the 48th Independence Day with a brilliant display of the country’s abundant gifts and culture.

The cultural performance by Ndere Troupe, pictures of the River Nile, mountain gorilla, a big rock representing the snow-capped Rwenzori Mountain ranges, the traditional huts and Makerere University and ‘Parliament’ were some of the highlights that captivated visitors to the Uganda site.

But it is the mountain gorilla, which is also a major cash cow for the tourism industry, that left a glowing memory in the visitors’ minds. The rare primate is not only displayed in several huge dummies stationed at the stall entrance, but also through a creative visa stamp that every guest visiting the Uganda stall gets on their passport. According to organisers, 18 million people had visited the Uganda pavilion by October 8. The expo opened six months ago.

“I hope you got a glimpse of our mountain gorillas, catalogue of existing investments and tasted our coffee,” asked Sarapio Rukundo, the tourism state minister, who led Chinese officials and hundreds of curious visitors around the Uganda exhibition tent.

Live Ugandan music by artists like Radio and Weasel and Jose Chameleone attracted the largely Asian and European visitors to the Ugandan pavillion, waving the black, yellow and red national flag colours.

u.g boy

October 13th, 2010, 06:31 PM

Government to create 65,000 new jobs
Tuesday, 12th October, 2010
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By Milton Olupot

UGANDA has attracted over $1b in the past nine months. This is expected to create 65,476 jobs.

The Uganda Investment Authority registered 93 projects in the last quarter of the year, between July and September, with an investment of $339.7m (about sh700b) creating 15,307 jobs in the country.

This brings the total planned investment value of the last three quarters of the year to $1,02b (over sh2 trillion) from the 263 projects with a planned employment of 65,476 people.

The UIA board chairman, Patrick Bitature, yesterday told journalists at the Media Centre that a comparative look at the three quarters of the year, shows a steady flow of foreign direct investment (FDI).

From January to March, the report said, the UIA registered 86 projects for investments, amounting to $371.6m and 32,598 jobs, while April to June saw 84 projects registered, amounting to $310.8m and 17,571 jobs.

Bitature stated that a report on the progress and potential of African economies compiled by McKinsey Global Institute, using their surveys, data from the World Bank and IMF, established that Africa was the third fastest growing continent averaging 4.9% growth between 2002 and 2008. It follows Asia and Middle East.

The report dubbed “Lions on the Move,” he said, places Uganda among the frontrunner lions in the transition economies which include Kenya, Cameroon, Senegal, Mozambique and Zambia.

“It indicates that Uganda and Ghana are set to benefit from recent oil discoveries that will no doubt generate the increased revenue that will spur further diversification.”

Bitature, flanked by the UIA executive director, Dr. Maggie Kigozi, observed that Uganda’s image continues to improve through international events, citing the ongoing Expo in China, which highlights Uganda’s rich culture and natural attractions

He also cited Moses Kipsiro’s recent performance in the Commonwealth Games in India where he won two gold medals and the Uganda Cranes leading their group with four points in the African Championship qualifiers, and Morris Kirya, a musician who recently won the Radio France International Discovery Music Award.

“I could spend the whole morning demonstrating that Uganda’s image is improving tremendously, thanks to all the individuals who make it happen,” Bitature said.

Bukedde TV starts Luganda news
Tuesday, 12th October, 2010
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Sanyu and Kaaya in the studio at the Vision Group head office in industrial area in Kampala

By Vision Reporter

BUKEDDE TV, owned by the Vision Group, has started broadcasting news. The 30-minute bulletin dubbed Agataliiko Nfufu (immaculate) will run daily from 10:00pm to 10:30pm.

The maiden programme was telecast on Monday.

The station’s news editor, Semei Wessaali, yesterday promised the viewers an informative and descriptive package.

“We are going to add value to the news. The station will not simply give the news, but will also give answers to the ‘so what’ questions. Our bulletin is added value compared what other television stations offer,” he stated.

According to Wessaali, Bukedde TV entertains and informs people about events in the region, country and entire world.

The station has since unveiled four people who will present the bulletin in pairs.

They are Tera Kaaya, Robinah Sanyu, Richard Kayiira and Sumaya Muwonge, all of whom have worked with Bukedde newspaper.

With the slogan “Tiivi y’omuntu wabulijjo”, Bukedde TV went on air last year.

The first anniversary is set for October 31.

The TV station is popular for movies, which are translated into Luganda, soaps and wrestling, among other programmes.

Northern war museum planned
Tuesday, 12th October, 2010
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By Vision Reporter

AS the LRA war comes to an end in northern Uganda, Makerere University’s Refugee Law Project, together with the USAID-funded Northern Uganda Transition Initiative (NUTI) has embarked on building a war memorial museum in Kitgum district.

The museum is to facilitate freedom of access to historical information to promote accountability for past human rights violations and promote harmony, healing and reconciliation among Ugandans.

The war memorial, which is scheduled to be ready for use by February 2011, will have cultural artifacts, paintings and drawings, with exhibitions whose themes shall be cultural pride, history and justice, peace and remembrance. There will be a walking path and courtyard at the museum.

The museum will carry out research and documentation of the events of the LRA war. It will also have a community center, conference facilities and an internet café.

So far about sh460m has been availed to kick-start the museum project.

Museveni launches Lusoga dictionary
Tuesday, 12th October, 2010
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Museveni launching the books at the Imperial Royal Hotel in Kampala recently

By Patrick Jaramogi

PRESIDENT Yoweri Museveni has said local languages are a gold mine for humanity.

“African languages are much richer than English. That is why we must cherish them. I am thinking of enriching Kiswahili. Kiswahili is a good language because it is neutral,” said Museveni.

The President made the remarks at the launch of three books: the monolingual dictionary in Lusoga written by Minah Nabirye, The Seasons of African Holistic Development by Asha Birabwa and The Crisis of Confidence by the third deputy prime minister and internal affairs minister, Kirunda Kivejinja.

Birabwa and Nabirye are Kivejinja’s daughters. “Kiswahili is poor in vocabulary unlike other African languages. That is why we must enrich it. It borrows most of its words from Arabic,” he explained.

The President said once he has captured enough words, he will forward them to the Kiswahili council for discussion and approval.

Museveni amazed the guests at the Imperial Royale Hotel in Kampala on Friday when he said the English language is shallow.

“That is why I have decided to write a Runyankore-Rukiga dictionary, which I will soon complete. I have so far captured 40,000 words compared to Nabirye’s 10,000 she captured in the Lusoga dictionary,” he said.

Museveni saluted Nabirye, Kivejinja and Birabwa for keeping alive Uganda’s local dialect.

“These words cannot die now because they have been captured in the dictionary. Kivejinja has done us a service by capturing events that have been happening since independence. The facts are very important for people who were not there then,” he said.

Museveni pledged to support the promotion of writing books in local languages, which he described as a good step towards enhancing culture.

“I confirm that we shall win next year’s elections. I will then put aside some billions of shillings to support such causes,” he said.

Prime Minister Apolo Nsibambi urged Ugandans to desist from too much entertainment and create time for reading and writing.

Kivejinja said the books were efforts of the NRM Government, which seeks to promote intellectualism.

Nabirye said the Lusoga dictionary nearly hit a snag due to lack of funding.

“I managed to make it but we are still stuck with copies due to lack of market,” she said.

Modern fishing sites ready
Tuesday, 12th October, 2010
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By Joel Ogwang

THE construction of six modern fish landing sites under the fisheries development project is complete.

However, the Mweena and Kitobo (Kalangala), Gorofa (Namayingo), Majanji (Busia), Bwondha and Bungoto (Mayuge) sites are awaiting installation of ice- making machines.

Under the project, 30 landing sites are to be constructed across the country as part of a $25m loan from the African Development Bank. The landing sites whose construction are in final stages include; Bukungu (Buyende), Butiaba (Buliisa), Kiyindi (Buikwe), Lwampanga (Nakasongola), Kagwara (Serere) and Namasale (Amolatar).

They will be operational by December, the fisheries ministry said in a statement. “Architectural and engineering designs for other 18 landing sites have also been prepared,” the statement added.

BUTEMBO21

October 13th, 2010, 09:27 PM

The Burundian president reaches out to Congolese Investors.

http://t0.gstatic.com/images?q=tbn:ANd9GcTh5w3KGw_y0Guux7mHANcZFHjzPyRUSy7P0vbfBwKT7AgjrLk&t=1&usg=__J7xBcJ6j976R_ayBBemg7QqPCQU=

Pierre Nkurunziza

The President of Burundi, Pierre Nkurunziza, on Wednesday called Kinshasa Congolese traders to invest in his country. He stayed in the Congolese capital since Tuesday. He led a delegation of ten persons in Burundi.

According to the Burundian head of state, his country is currently experiencing an improvement in the economic environment. Pierre Nkurunziza has reassured investors Congo:

We have improved the legal framework, including the investment code has been reviewed in depth, so much so that it became, I think, the region's most attractive Codes. It is for you to come visit. Today, we say it is high time to think, all of us to develop our respective countries. And the signal is already strong for the Congolese economic operators who want to invest in Burundi: feel like home!

Some areas need new capital, "he advised. These sectors are:

* Infrastructure
* Telecommunications
* Ores,
* Energy
* Tourism, etc. ..

The Federation of Congolese Enterprises (FEC) has not yet responded to this call. However, some traders believe that the DRC Congo needs more investment than Burundi.

At a dinner Wednesday night at Pierre Nkurunziza, Joseph Kabila has welcomed the strengthening of economic and trade relations between the DRC and Burundi.

According to the Congolese president, the consolidation of peace and security at the borders of both countries will promote the integral development of the two states.

Radiookapi.net, http://radiookapi.net/actualite/2010/04/15/le-president-burundais-tend-la-main-aux-investisseurs-congolais/ google translation

Congolese urged to invest in Uganda

DEFENCE minister Dr. Crispus Kiyonga has called on the Congolese business community to take advantage of the East African Common Market to invest in Uganda.

Kiyonga, who is also the MP for Bukonzo West in Kasese district, assured the Congolese community that the existing cordial relationship between the two countries would be maintained.

He made the remarks while on a three-day visit to Butembo, North Kivu province in eastern DR Congo last week.

The delegation, composed of political leaders and businessmen from Kasese district, held discussions aimed at strengthening security between the two countries, promotion of business and cultural cooperation, especially in the area of writing.

According to an October 6 press statement issued by Barnabas Bamusedde Bwambale, the Masaka resident district commissioner, the team also attended the 10th memorial anniversary of the Archbishop of Bukavu, Monseigneur Emmanuel Kathaliko.

Newvision by Courtesy

u.g boy

October 14th, 2010, 05:56 PM

Govt funds solar scheme
Wednesday, 13th October, 2010
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By Cecilia Okoth and Justine Nakitende

THE Government, through Post Bank Uganda, has created a fund from which the public will borrow money to popularise the use of solar energy.

Energy state minister Simon D’Ujanga said the Government had specifically allocated funds for those who wish to install solar panels at home to promote energy efficiency.

Speaking at the regional energy efficiency workshop at Hotel Protea on Tuesday, D’Ujanga added that adequate, reliable and affordable energy is an essential drive for social economic transformation of any nation.

“Energy is the driver of industrialisation, which subsequently increases employment and economic growth,” he said.

D’Ujanga added that the Government is in the process of drafting a Bill for energy conservation as a way of supporting energy efficiency. He said when passed into law, the Bill would support energy efficiency and conservation.

“Legal frame works should be introduced requiring construction firms and industries to meet energy efficiency before their plans are approved,” the minister said.

The legal instruments will also discourage dumping of obsolete equipment in the region.

D’Ujanga noted that the Government had undertaken several energy efficiency programmes. They include exemption of tax for energy efficient technologies to cut costs, distribution of 800,000 compact fluorescent lamps to domestic electricity consumers to improve energy efficiency in households by saving about 30MW of power

Masaka Hospital to get modern theatre
Wednesday, 13th October, 2010
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By Dismus Buregyeya

MASAKA Hospital will get a modern theatre capable of handling five operations at ago.

A senior hospital administrator, David Nuwamanya, said the old theatre will be demolished after traces of tetanus were detected in it.

Nuwamanya added that the hospital was currently using the eye department and maternity ward theatres.

He said construction of the new theatre would begin in November, adding that the Japanese International Cooperation Agency (JICA) would oversee it.

Kabale-Kisoro road handed over to government
Wednesday, 13th October, 2010
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Good job: A section of the road that was handed over to government

By Ben Mugisha

Fifty kilometres of the Kabale-Kisoro road have been completed and handed over to the Uganda National Roads Authority. SBI International Holdings, the firm that is constructing the road, handed over the first section from Kabale town to Kalengyere on September 27. Works started in January 2008.

Eng. Peter Ssebanakitta, the UNRA executive director, confirmed the hand-over yesterday. “This is to certify that the section from kilometre zero to 50 was completed and taken over by the employer on September 27, 2010 in accordance with clause 48 of the general conditions of the contract,” the handover certificate from UNRA read in part.

“If the conditions remain constant, the remaining 48km will be completed by the contractual completion date of December 2011,” Shay Cameo said at the handover.

“As UNRA, we are satisfied with the work of the contractor as it fulfills our agreement,” Dan Alinage, the spokesperson, said.

The road connects to Kisoro and to the DR Congo at Bunagana and Rwanda at Cyanika.

How businesses are helping attain MDGs
Wednesday, 13th October, 2010
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By Ibrahim Kasita

WHO can deny that businesses are vital partners in creating economic and social development?

There is evidence to show that rising income and economic growth is necessary to closing the gap on the millennium development goals (MDGs).

For example, increase in foreign direct investments in Uganda’s nascent oil and gas industry, which is close to $1b, has promoted business opportunities in the once isolated remote and low income Lake Albert Rift Valley.

Infrastructure and social services have improved; new jobs have been created, while fishermen and farmers have a bigger market for their products.

A 23,000 sqkm stretch which was a remote and backward area has been opened up and linked to the rest of the country with upgraded murram roads which will soon be tarmacked.This has greatly reduced transport costs and led to the faster delivery of suppliers and products.

Fresh fish from Lake Albert and River Nile and other agrarian products are now on high demand. New jobs have been created for security guards, transport providers, cleaners, drivers and caterers.

Dozens of primary schools and several health centres have been upgraded and modern maternity centres have been constructed. There is clean and running water system.

There has also been tremendous increase in investments in the sectors of agriculture, transport, telecommunication, education services and trade, finance, manufacturing, tourism and real estates.

“This has helped in job and wealth creation. Household incomes have improved while poverty has reduced, contributing to the goal of eradication of poverty,” explained Dr Maggie Kigozi, the Executive Director of Uganda Investment Authority .

“The private sector has invested in health infrastructure like health centres and hospitals reducing child mortality and maternity rates, fighting malaria and HIV/Aids,” she said.

“We are also seeing the investing in primary and secondary schools a move that has increased access to education.”

Improvements in poverty reduction and human development indicators are associated with rising income, the World Bank contends.

“The positive pre-crisis trend that African countries were seeing on poverty and human development indicators was thanks to strong growth since the mid-1990s in these countries, fuelled by prudent macroeconomic policies, far-reaching reforms and a favourable international environment,” Obiageli Ezekwesili, the World Bank Africa region vice president, said.

“Economic growth is necessary to closing the gap on the MDGs. Evidence shows that rising income is closely associated with progress on the development goals. Boosting economic growth will be central to raining momentum and closing the gap on developing goals,” says Obiageli.

She points out some of the achievement have been attained the poverty reduction, primary education, gender parity in primary and secondary school and access to safe water.

The private sector mainly the international companies have contributed in helping achieving the development goals in form of foreign direct investments. There was a surge in investments in natural resources particularly in Uganda, Ghana, Mozambique, Niger, Zambia, Liberia and Guinea.

Encouraging foreign investments in low income markets like Uganda as well as checking the pressing need to reduce poverty, hunger and malnutrition, benefits both the firm’s growth and community’s progress.

This is because new investments speed up the rice in local income and growth by investing infrastructure, research, technologies, hiring and developing local talent, buying from the local communities, volunteering talent and time towards a particular issue, donating surplus and used equipment and making financial donations through corporate foundations.

“We have trained young people by providing them with internship placement in our factories. This helps obtain the skills and knowledge required for development,” Robert Mawanda, the Uganda Manufacturer’s Association (UMA) communication and business support officer, said.

Indeed this is in line with the public-private partnership that strives to promote vocational training. Businesses are offering effective curricula, internship programmers that lead to permanent jobs and skills development, and certification schemes.

They have facilitated the provision of affordable services to poor communities like water, electricity, technologies and capital and insurance for entrepreneurs and micro-enterprises.

Good business sense: Notwithstanding businesses contribute fundamental role in development by creating jobs, fostering economic growth and generate tax revenues, build long-term capacity for growth through the transfer of technology, innovation and skills building.

Although they create opportunities to explore, they also encounter risks and responsibilities.

For example, the spread of lethal diseases such as HIV/AIDS, the scourge of terrorism or environmental destruction are challenges that can no longer be ignored.

Business cannot escape the impact of core development problems because they also need a safe and stable environment in which they operate.

This calls for reduction of barriers that limit the creation and running successful businesses at all levels.

“The government should help foster an enabling environment for business growth and to provide opportunities for people to escape poverty,” says Maggie Kigozi.

“We have to provide serviced land and advocate for competitive business environment,” she said. Some of the barriers that need to be removed include the bureaucratic business registration process, access to finance and land, tax administration and customs challenges, access to justice, reform of labour laws.

Oil boosting growth - UIA

By Dorothy Nakaweesi & Faridah Kulabako (email the author)

Posted Thursday, October 14 2010 at 00:00

Kampala

A report published by the Mckinsey Global Institute has cited oil discoveries as one of the major drivers in the growth of Uganda’s economy. The report dubbed: ‘Lions on the Move’ focuses on the progress and potential of African economies.

The survey based on the IMF and the World Bank data indicates that Uganda and Ghana will benefit from oil discoveries, which are expected to generate increased revenue and growth.

The report identified agriculture, infrastructure and mining as key sectors where Africa has the highest untapped resources. It is anticipated that in the coming years, this will account for about $2.6 trillion. Other countries ranked with Uganda include: Kenya, Cameroon, Senegal, Mozambique and Zambia.

Improving image
Speaking in Kampala on Tuesday, Mr Patrick Bitature, the chairman of Uganda Investment Authority, said: “Uganda’s image continues to improve through international events. The stand at the Expo in China, highlighting the country’s tourism, its mountain gorillas and the rich culture presented through the Ndere Troupe, has been a major attraction to millions of visitors.”

He said: “Uganda’s own Kipsiro who lifted gold medals in the 5,000 and 10,000 metres at the Commonwealth games in Delhi - is still fresh.” He added the business scene has been impacted by the growing confidence the world is showing in Uganda. Foreign Direct Investment has continuously flowed into Uganda, bringing in the much needed technology for industry development and jobs to enhance the county’s growth. In the last nine months, Uganda has registered a total of 263 projects with plans to invest about Shs2 trillion and to create at least 65,476 jobs.

The top ten FDI sources include: the Netherlands, India, China, Belgium,, Kenya, Sweden, United Kingdom, Italy, Denmark, and Austria. Ugandan investment continues to be the leading source of investment for the quarter with 40 projects and with a planned value of investment of $178.1 million (Shs400 billion) and envisaged to create 11, 338 jobs.

Most of the investment from the local and foreign ventures was recorded in the real estate, business and financial services sectors. This was followed by the manufacturing, mining, construction, and agricultural sectors.

The institute established that Africa was the third-fastest growing continent averaging from 4.9 per cent growth between 2002 and 2008, followed by the Emerging Asia and the Middle East.

u.g boy

October 14th, 2010, 11:30 PM

gabon welcomes Uganda diplomatic tie revival
Thursday, 14th October, 2010
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Kinobe presenting his Letters of Credence to Bongo on October 6 in Gabon

By Vision Reporter

GABONESE president Ali Bongo Ondimba has welcomed Uganda’s move to revive diplomatic ties with his country.

Bongo made the comments during a ceremony at which Ambassador James William Kinobe presented his Letters of Credence to him on October 6 in Libreville at the presidential palace.

Kinobe is accredited as Ambassador Extraordinary and Plenipotentiary of Uganda to Gabon, but resident in Kinshasa.

The mandate of the Uganda embassy in Kinshasa covers DR Congo, the host country, Angola, Central African Republic, the Republic of Congo (Congo Brazzaville) and Gabon.

Uganda’s relations with Gabon were affected when Uganda severed ties with the DR Congo in 1998. The ties with Congo were restored in 2009.

According to a statement sent from the Ugandan embassy in Kinshasa, Bongo “promised to offer all the support needed to ensure strong relations and mutual cooperation between the two countries in all aspects, especially commerce and trade, tourism, oil exploration, military and other security related issues, a strong regional market and all other multilateral issues that concern Africa and South-South cooperation.”

Gabon Fact file:

Gabon, located in Western Africa, bordering the Atlantic Ocean, between the Republic of the Congo and Equatorial Guinea, is one of the prosperous and stable African countries.

It has had only three presidents since its independence from France in 1960.

President Omar Bongo Ondimba, one of the longest-serving heads of state in the world, dominated the country’s political scene for four decades. Bongo died in June 2009 and on September 3, 2009, his son, Ali Ben Bongo, was elected president.

Gabon is more prosperous than most nearby countries, with a per capita income of $7,468, which is four times the average for Sub-Saharan Africa. This is in large part due to offshore oil production. It is an exporter of manganese, iron, and wood.

Uranium mines were shut down in 2001 but there is work in progress to re-open them.

Planned efforts to exploit rich iron deposits are expected to begin in 2012.

Uganda to export rice by 2013
Thursday, 14th October, 2010
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By John Kasozi and Prossy Nandudu

UGANDA is to export rice to East Africa by 2013, the agriculture state minister has said.Aggrey Henry Bagiire said rice production in Uganda was growing steadily.

“Uganda is projected to produce about 200,000 metric tonnes (MT) this financial year. Last financial year, Uganda produced 180,000 MT,” he said.

Bagiire was speaking at the launch of videos on rice at Kilimo Trust offices in Kampala on Monday.

The videos are in eight languages, all on one DVD.

The languages are English, French, Kiswahili, Ateso, Luganda, Lugbara, Luo and Runyakitara.

About 20,000 DVDs are to be distributed across the East African Community countries.

The DVD is aimed at boosting rice profitability in support of this year’s World Food Day theme, “United Against Hunger”.

It contains 11 programmes outlining techniques which can boost incomes for rice farmers.

Bagiire noted that Ambassador Phillip Idro had set up a modern rice milling machine in Jinja that would process rice to the required international standards.

Idro said Kenya imports rice amounting to $0.5m everyday. “The DVD will help farmers to acquire knowledge and tap the Kenyan market.”

Dr. Ashura Luzi-Kihupi, the director of the Eastern/African Rice Centre, said rice was increasingly becoming a strategic crop for both food security and poverty alleviation in eastern, central and southern Africa.

She noted that the actual yields obtained generally in Africa are far below than what would be attained under improved management. “Yields on average seem to be at only 30% per acre.”

Gulu stone quarry association wants loan for new project
Thursday, 14th October, 2010
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By Chris Ocowun

HAVING mined stones since 1989, the over 300 members of Laroo Quarry Works Association in Gulu district are now asking the Government to give them a sh180m grant to start other income-generating activities.

Six groups of about 60 people each intend to use sh30m for business ventures that will improve their standard of living better.

The request is also a result of women members’ complaints that stone quarrying required a lot of energy and was men’s work.

The members further complained their leaders vanished with close to sh4m, which they had raised since 1989.

According to Benson Olur, a leader of the association, in 2008, officials from the Ministry of Energy and Minerals Development trained some of them in geology, after which they promised to give the grant to start other income-generating activities.

“We have waited for this grant from the ministry and we cannot see it. Remind them to give us the grant so that we can start doing some different income-generating activities to survive and send our children to school,” he said.

Olur noted that their number dropped from about 500 to 300 recently, when the formerly internally displaced persons started returning to their villages.

Betty Abur, a member, said most of the people breaking stones were widows, school drop-outs and orphans, who are looking for school fees.

“The school children are only allowed at the quarry works on weekends because on weekdays they should be at school,” she said.

The residents also complained that much as they pay a fee of sh200,000 every year to Bungatira sub-county to exploit the quarry, the road leading to the quarry is in a poor state and they lack health services and latrines.

Simon Kilama, a Senior Six drop-out now breaking stones at the quarry, appealed to the Government to help him and other youth to complete their studies.

Awoja water supply repaired
Thursday, 14th October, 2010
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By Simon Naulele

OVER 10,000 residents of Soroti, Amuria and Kaberamaido districts who consume piped water from Awoja bridge can now smile after the floating island that damaged the water pumps was cleared, ending a week of water shortage.

The floating island believed to have come as a result of disturbance by the breeding hippos had covered the four-kilometre water body.

The Soroti National Water and Sewerage Corporation area manager, Connie Nagimesi, and the plant maintenance management officer, Anthony Ochwo, said the water pumping system that had sunk, had been repaired.

Ochwo said because of the high pressure of the water, the divers could not go deep into the water to remove the debris from the damaged pump, so they had to hire a high tonnage crane from Kampala. “Fishing out debris from the sunken pump house took us a lot of time,” he said.

Ochwo said a pump protecting guard was being installed to prevent blockage.

Nagimesi thanked the residents for their patience, which allowed them to work fast, peacefully.

Luweero acquires motorsport arena
Thursday, 14th October, 2010
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Orland tests his buggie at the new Motorsport Arena

By Douglas Mazune

THE Uganda Motorsport Arena, the biggest motocross circuit in Uganda built on 30 acres, was yesterday launched with test runs by motorcyclists and drivers.

The motocross racing circuit that according to its owners has cost over sh200m to set up in Busiika in Luwero , also has the potential to host a closed rally route.

The arena includes a 2.6-km double track for cars, 2-km motocross track, a rocky terrain for enduro races, a go-kart surface and Four-wheel drive (4x4) Challenge course. The five-acre packing yard will serve as a go-kart track.

“When we go to South Africa we can’t race on the sandy track and in Kenya they have more challenging obstacles. We have now secured a home for all motor sports in Uganda and in the near future our standards will improve,” Barak Orland, a director of the Arena remarked.

National Council of Sports assistant general secretary Nicholas Muramagi hailed Barak and Arthur Blick, the directors of Uganda Motorsport Arena, for investing in sports.

“We will always welcome the private sector to support sports and it’s encouraging that they work with FMU,” Muramagi stated.

Foreign direct investment up 9%
Thursday, 14th October, 2010
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KAMPALA-Uganda’s foreign direct investment (FDI) grew by 9.3% in the third quarter of this year (July to September) from the previous quarter because of improving investor perceptions about the country.

According to quarterly performance data released by the Uganda Investment Authority (UIA) on Tuesday, the country attracted a total of $339.7m worth of planned investments, up from $310.8m in the quarter ended June.

East Africa’s third largest economy discovered commercial oil deposits in the west along its border with the Democratic Republic of Congo.

Uganda has registered a total of $1.02b in the first nine months of this year, expected to create more than 65,000 jobs.

The state-run UIA said finance, insurance and real estate attracted the largest portion of FDI in the quarter followed by manufacturing.

Mining got the third largest share of investments.

“Foreign direct investment is continuously attracted to Uganda, bringing in the much needed technology for industry development and jobs to enhance the living standards of Ugandans,” Patrick Bitature, the UIA chairman, said in a statement.

“The business scene has been impacted by the growing confidence the world is showing in Uganda today,” said

Netherlands, with projects in mining and manufacturing, UIA said, topped the list of FDI source countries, followed by India and China.

Economists say Uganda will see a sharp surge in FDI inflows as its budding petroleum industry goes into development and production over the next five years.

A Reuters poll of analysts forecast the economy will grow at 6.7% this year before edging up to 7% in 2011.

Britain’s Tullow Oil, which controls the largest exploration acreage, has made the most discoveries.

The firm intends to roll out a $10b development programme in partnership with France’s Total and China’s CNOOC Ltd to get Uganda’s crude start flowing to the markets.

China gives security equipment to Gov't
Thursday, 14th October, 2010
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By Vision Reporter

THE China has donated security equipment, computers, scanners and CTV cameras all valued at about sh330m to the foreign affairs ministry, James Mugume, the permanent secretary, has revealed.

“We applaud the existing relationship between the government of China and the foreign affairs ministry. This year alone, we have so far received donations worth sh600m from China,” he added. He observed that China was one of the leading countries with big investments in Uganda.

“Their intervention in health services and infrastructure development is a clear sign that the relationship between the two countries is growing.

Mugume revealed that Uganda would get a consulate in the Chinese province of Guangzhou, where the majority of Ugandans live, to boost business and handle problems the Ugandan business community operating in this area face.

West Nile power project on course
Thursday, 14th October, 2010
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deal: Ssebowa, Lessce and Omach at the Arua hearing

By Vision reporters

ALBATROS Energy project in West Nile is on course, following a public hearing in Arua town last week.

Patrick Okot, the operations manager of the Mauritius-based firm, explained this week that although they had not fully delivered on the electricity regulator’s requirements, the project would take off as soon as they were granted a licence.

Okot was reacting to the Electricity Regulatory Authority (ERA) concerns that Albatros had not completed a feasibility study for the 10MW project.

Dr. Frank Ssebowa, the ERA boss, presided over the two hearings attended by Jachan Omach, the finance state minister, district authorities and Albatros officials.

Eric Lessce, the Albatros director for engineering, pointed out that the project was self-financed.

He noted that to prove their commitment to the project, they were offering a 10% performance bond of the $20m project to the Government.

Shs190m to boost sanitation

By Martin Ssebuyira (email the author)

Posted Friday, October 15 2010 at 00:00

Water Aid Uganda has patterned with Dfcu Bank in the construction of sanitation facilities to improve heath conditions and promote safe environment in various parts of the country.

Mr Wilbrod Owori, the Dfcu head of consumer banking, said while commissioning the project in Kampala on Wednesday that the Shs190 million project will see the construction of new toilet facilities, water kiosks, water recycling centres, and water jars in various parts of Uganda.

He said: “The bank is committed to supporting communities through sustainable projects so as to improve the lives of people around which it works.”

The bank, according to Mr Owori is focused on strengthening such projects, which provide a firm foundation for building strong and healthy communities to act as basis for the elimination of diseases and poverty.

Mr Anthony Ssenabulya, the head teacher of St. Peters Nsambya, where one of the project’s first water toilet facilities was commissioned commended the bank for its support of projects that impact on communities.

Government sells 250 acres of prison land at Shs1.2m
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The Kirinya Prisons land that has gone to investors at Shs1.2 million.

LAND BONANZA: The Kirinya Prisons land that has gone to investors at Shs1.2 million. PHOTO BY PAULINE KAIRU
By Mercy Nalugo (email the author)

Posted Friday, October 15 2010 at 00:00

The government is once again in the spotlight over questionable sale of land in Jinja to private investors—at a laughable price. Parliament is investigating how 252 acres of Kirinya Government Prisons land on the shores of Lake Victoria was parcelled out to investors at Shs5,000 an acre reportedly on the President’s directives.

The entire piece fetched Shs1.2m. Brokers Daily Monitor spoke to yesterday said land in the area goes for Shs20m an acre on the open market.

Caveat call
Documents produced before the Public Accounts Committee indicate that the land was given to Lake Victoria Information Communication Technology and Bio-Tech (LAVIT)—a firm owned by Mr Richard Raja, a businessman and the Jinja East MP, Mr Igeme Nabeta.
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the kirinyara lavit park industrial ict park
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The investors are to establish a computer processing plant on the land. The committee chaired by Budadiri West MP Nandala Mafabi yesterday directed the accounting officer of Uganda Prisons, Mr Simon Kimono, to write to the Uganda Land Commission to slap a caveat on the Kirinya land.

“Is it right to give away 252 acres of land to an MP and you ask tax payers to pay for the relocation? This is unheard of. The government should have used the money to construct more schools and hospitals so that the poor can access them,” said Mr Mafabi.

A letter written in January 2008 by President Museveni—but only made public yesterday—directed then Internal Affairs Minister Ruhakana Rugunda to immediately transfer the land to LAVIT.

“Coordinate with the ministry of Finance to expedite the facilitation of relocation. The prisoners can be kept anywhere in Uganda. That Kirinya land is prime, near town, at the shores of Lake Victoria and next to the railway line,” reads the letter.

“It should therefore be used to create employment, generate export of services to increase our forex earnings and contribute directly or indirectly to the expansion of the tax base,” it adds.

President cited
The legislators, however, were skeptical that the President could approve a deal where public prime land is given away at peanuts.

“As a committee, we are saying no evicting prisoners in Kirinya. How can we give Nabeta free land and build a prison elsewhere using tax payers’ money just because his business partner is brown? We are putting a caveat and we don’t want any activity on the land until we are through with investigations,” Mr Mafabi ruled.

The legislators, however, heard their concerns could yield little since the investors already possess the land title.
The land according to the Auditor General’s report, was given away hurriedly without a formal business/land use plan to justify the prison’s relocation.

Mr Kimono told the MPs that the land transaction was done without his knowledge. MP Nabeta could not be reached as he is reportedly out of the country.

The government has previously come under criticism for dishing out public land to investors--some of whom have failed to develop the facilities.

u.g boy

October 15th, 2010, 07:49 PM

the lavit park in jinja

Government sells 250 acres of prison land at Shs1.2m
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http://www.monitor.co.ug/image/view/-/1033288/highRes/204356/-/maxw/600/-/15qhk8f/-/home001pix.jpg
LAND BONANZA: The Kirinya Prisons land that has gone to investors at Shs1.2 million. PHOTO BY PAULINE KAIRU

By Mercy Nalugo (email the author)

Posted Friday, October 15 2010 at 00:00
The government is once again in the spotlight over questionable sale of land in Jinja to private investors—at a laughable price. Parliament is investigating how 252 acres of Kirinya Government Prisons land on the shores of Lake Victoria was parcelled out to investors at Shs5,000 an acre reportedly on the President’s directives.

The entire piece fetched Shs1.2m. Brokers Daily Monitor spoke to yesterday said land in the area goes for Shs20m an acre on the open market.

Caveat call
Documents produced before the Public Accounts Committee indicate that the land was given to Lake Victoria Information Communication Technology and Bio-Tech (LAVIT)—a firm owned by Mr Richard Raja, a businessman and the Jinja East MP, Mr Igeme Nabeta.

RELATED STORIES

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Law courts register more cases
The investors are to establish a computer processing plant on the land. The committee chaired by Budadiri West MP Nandala Mafabi yesterday directed the accounting officer of Uganda Prisons, Mr Simon Kimono, to write to the Uganda Land Commission to slap a caveat on the Kirinya land.

“Is it right to give away 252 acres of land to an MP and you ask tax payers to pay for the relocation? This is unheard of. The government should have used the money to construct more schools and hospitals so that the poor can access them,” said Mr Mafabi.

A letter written in January 2008 by President Museveni—but only made public yesterday—directed then Internal Affairs Minister Ruhakana Rugunda to immediately transfer the land to LAVIT.

“Coordinate with the ministry of Finance to expedite the facilitation of relocation. The prisoners can be kept anywhere in Uganda. That Kirinya land is prime, near town, at the shores of Lake Victoria and next to the railway line,” reads the letter.

“It should therefore be used to create employment, generate export of services to increase our forex earnings and contribute directly or indirectly to the expansion of the tax base,” it adds.

President cited
The legislators, however, were skeptical that the President could approve a deal where public prime land is given away at peanuts.

“As a committee, we are saying no evicting prisoners in Kirinya. How can we give Nabeta free land and build a prison elsewhere using tax payers’ money just because his business partner is brown? We are putting a caveat and we don’t want any activity on the land until we are through with investigations,” Mr Mafabi ruled.

The legislators, however, heard their concerns could yield little since the investors already possess the land title.
The land according to the Auditor General’s report, was given away hurriedly without a formal business/land use plan to justify the prison’s relocation.

Mr Kimono told the MPs that the land transaction was done without his knowledge. MP Nabeta could not be reached as he is reportedly out of the country.

The government has previously come under criticism for dishing out public land to investors--some of whom have failed to develop the facilities.

^^^^^^^^
the lavit park in jinja
Located in Jinja (Eastern Uganda), the LAKE VICTORIA INFORMATION / COMMUNICATION TECHNOLOGY AND BIO-TECH (LAVIT) Park is envisioned to be the preferred and distinctive technology and innovation centre for Uganda and the East African region. The Park focuses on research and development, marketing, sales, services, and capacity building in information technology (IT), biotechnology and related knowledge-based industries. With encouragement and support from the government - LAVIT is poised to catalyse and accelerate the development of these new growth sectors.

LAVIT capitalizes on the opportunity of knowledge as a production resource and innovation as the cornerstone of strategy for many of its tenants. The institution of LAVIT is a knowledge entitiy that is powered by innovative capacity with strong reliance on ICT. It creates and maintains the knowledge infrastructure needed in rendering the human and physical resources effective - and enhance productivity in all sectors such as commerce, transportation, manufacturing and services - all leading towards poverty eradication

renders
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u.g boy

October 16th, 2010, 03:46 PM

Uganda Clays at 60 Years
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Uganda Clays Limited the leading manufacturer of baked clay products in Uganda is celebrating 6 decades of existence and Construction Review examines the history of this milestone in one of Uganda’s iconic names in the construction industry.

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Background History of Uganda Clays

Uganda Clays Limited (UCL) was first registered as a private limited liability company on 10th July 1950. In 1977, the government through National Housing and Construction Corporation (NHCC) acquired 75 percent of the company shares.

Following the privatisation era of Uganda in 1999, the government divested the stake it had acquired through National Housing Corporation bringing on National Social Security Fund (NSSF) and National Insurance Corporation (NIC) as major shareholders together with other 957 shareholders.

In 2000, UCL listed as the first equity on the Uganda Stock Exchange (USE) market. The company has grown evidently over the years from one factory located in Kajjansi (Kampala) to two factories.In 2003, management and the board made a decision to start the Kamonkoli factory in Budaka District
Product Range

UCL’s products are all made from baked clay to ensure quality and durability of the building materials they provide to their customers. The products range from roofing and floor tiles, walling and partitioning blocks, suspended floor units to bricks and decorative grilles.
Marketing Strategies at UCL

Uganda Clays has taken the initiative to widen the distribution channels by opening up sale outlets across Uganda.These outlets are in Lugogo, Nateete, Ntinda, Mbarara and Juba (South Sudan). UCL is also taking advantage of the availability of trust worthy agents in Soroti, Gulu as well as in Rwanda.

As the UCL footprint has made its mark in the East,West,North,South and across borders,the marketing strategies adopted have helped the company to ensure that the market for its products is reached at whatever location the customers may be stationed.
Target Market for Kamonkoli

The Kamonkoli factory was borne out of need to bring the company’s products closer to customers in Eastern and Northern Uganda. In fact the factory is now serving the export market of Sudan, Rwanda, Northern Tanzania and Western Kenya with products manufactured from this new factory.
Competitive Advantage of Uganda Clays

UCL products have been widely used and have been proven on thousands of projects for over 60 years in and outside Uganda, in both domestic and commercial application. UCL products have been proven to be cost effective over a period of time and some of the benefits of using these products include the following:

* They satisfy building regulations and international standards.
* They have outstanding thermal insulation and allow vapour permeability.
* Thermal mass minimum 96kg / m2.
* Products are Environmentally friendly
* They have outstanding fire protection, in the event of fire.
* Low life cycle costs, as they do not require plastering, painting, protection against weather change and they require minimum labour, hence giving customers over 40 percent saving compared to other building materials.

Challenges Faced Over the Years

The demand for construction materials is so dynamic in the region; in fact the construction sector is one of the fastest growing in the Ugandan economy. This has attracted a number of providers of counterfeit products.

Product adulteration is rampant; leading to collapse of some structures and at times death. The cost of energy is still high; making production costs high. Some of the imported construction materials especially in the roofing sub sector are not healthy for human use.

Despite the continuous consumer education, many customers are still being conned by people hanging around the factory purporting to be dealers for Uganda Clays.
Ahead of Competitors

Human resource being the most precious factor of production ,Uganda clays has invested so much in its development.The company has on a number of occasions won employer of the year awards.

UCL has also invested a lot in technology transformation and advancement so as to ensure that the quality of products they produce meets the consumer’s expectation. To stay afloat UCL has had the continuous support from all its esteemed customers from the periods of scarcity of product to the current period of plenty.
Strategies to Counter Competition

With the two factories in place, product ranges can easily be availed at a shorter notice than before.

The company has put in place a number of communication channels to ensure that customers get the right information about their products; one of them being personal selling.

The company’s operational and distribution strategies ensures that their products are not only got at arm’s length, but also that ‘’Uganda clays’’ becomes a household name not only to the first class but affordable to all classes of people in the region.
Products at Kamonkoli Factory and at Uganda Clays Kajjansi.

In terms of quality and brands products at the two factories are the same.However, the Kamonkoli factory is evidently more technologically advanced with automated processes in the manufacturing of the products but the homogeneity in quality of the products from both Kajjansi and Kamonkoli factories has been maintained with both passing set standards of Uganda National Bureau of Standards and Central Materials Laboratory.

To ensure similarity and quality in their products, experienced teams,prior to setting the factories in this areas,were sent out to test the clay in order to ensure that the quality was up to the required standards.

To this day, the company has not been disappointed. Noteworthy is that, some loyal corporate customers for example real estate developers, national housing among others, have put up beautiful estates using these Kamonkoli products.
UCL’s Ability to Stand out in Baked Clay Products

Looking at the baked clay industry; Uganda clays controls over 70 percent of the market in Uganda, and commands the Central and East African region as the superior quality manufacturer. With its modern European standard technology; in both the Kamonkoli and Kajjansi factories the company’s capacity to handle the biggest order for materials at the earliest possible time is ensured.
The Future

UCL is looking at strengthening their position as the market leader in the manufacturing of baked clay products in East Africa. East Africa recently formed a common market of over 120 million people, which the company is boldly taking advantage of .

The company’s definitive aim is to become a regional cost-leader through establishment of modern and high tech manufacturing units. It gauges its added advantage on the regional market by its achievements in Uganda and the fact that the clay in the country surpasses the quality in the region.

u.g boy

October 17th, 2010, 11:58 AM

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u.g boy

October 18th, 2010, 07:00 PM

Land ministry, Prisons in fresh wrangle over Jinja land
Sunday, 17th October, 2010
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By Mary Karugaba

UGANDA Prisons has accused the Uganda Lands Commission of allocating Kirinya Prisons land in Jinja to a private investor without its knowledge.

Prisons accounting officer Simon Kimono told the public accounts committee on Thursday that the commission allocated the land to the Lake Victoria Information Communication Technology and Bio-tech (LAVIT) in July 2008.

“I only came to know about the transfer through the committee chairperson in July,” Kimono said, adding that when he checked with the commission, he discovered that the title had already been transferred to LAVIT.

The MPs agreed to summon the internal affairs minister, and MP Nathan Nabeta, whom they said owned LAVIT, to explain the land transfer.

Kirinya, the second-largest prison in the country, sits on 230 acres of land. It houses the main and women’s prisons, a remand facility and a primary school. According to sources, sh42b is needed to relocate the prison to Bugungu Island in Mukono.

Meeting the same officials in July, the MPs discovered that the land was allocated to LAVIT under the directive of President Yoweri Museveni.

Atiak Police barracks saved from ‘sorry state’
Sunday, 17th October, 2010

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A section of Atiak Police station under renovation

By Cornes Lubangakene

THE estates department of the Uganda Police has started renovating Atiak Police Station and barracks in Amuru district.

The development is also aimed at providing descent accommodation for the Police personnel.

The operations commander in charge of Atiak Police Station, Ongwen Lakidi, hailed the Police for giving a face-lift to the dilapidated station and barracks that was built in the colonial times.

“This station was already dead and these people have come in time to put back the structures into good condition. Besides being dilapidated, a hailstorm blew off the old roof from the station’s building in 2008, rendering it unusable.

“We didn’t have offices and the buildings in the barracks were in a sorry state. But we shall now be able to have descent accommodation and offices as well cells for keeping suspects,” Lakidi said.

He said when the renovation exercise is completed; Police personnel would be accommodated in the barracks, making it easy to deploy them. In the past, they used to stay in the camps and getting them was not easy.

“This will also promote confidence of the community in the Police as fencing off of the station and barracks will limit cases of suspects escaping. The water tanks will also minimise the water shortage in the barrack,” Lakidi added.

The exercise, which has been enabled through the peace, recovery and development programme, will see the renovation of five accommodation blocks, construction of four water tanks and seven stanches of pit-latrines, renovation of the offices and fencing of the barracks.

The supervisor from the estates department of the Police, Julius Ndyamuba, said the barracks was vandalised during various wars and was the worst in the region.

He said the renovation is expected to be completed this month.

War museum to cost sh500m
Sunday, 17th October, 2010
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By Patrick Jaramogi

CONSTRUCTION of a war memorial museum has kicked off in Kitgum district.

The $250,000 (about sh500m) museum aims at facilitating access to historical information, according to Lyandro Komakech, the acting head of research and Advocacy at the Refugee Law Project.

The project is supported by the United States Agency for International Development (USAID) under the Northern Uganda Transitional Initiative through Casals and Associates.

The facility, to be based at the Kitgum district headquarters, will be responsible for collection, preservation, and recording of images and artifacts relating to the conflict in northern Uganda.

It will include pictures, story clips, text books, sculptures and video footage of the pre-war post-war northern Uganda.

According to Komakech the memorial will constitute a museum with research and documentation units.

“The edifice aims to benefit posterity and enhance Uganda’s national reconciliation efforts by collecting and preserving national records and memories related to the conflict,” said Moses Okello, the head of the project.

However, the establishment of the memorial received mixed reactions, with a cross-section of participants describing the project as “premature” and “still lacking” during the unveiling ceremony held at Kabira Country Club in Kampala last week.

Ochola Ogola, a director at the Africa Leadership Institute, wondered why central government was not part of the project.

“I don’t see the central government being involved in the project. We would have held a truth and reconciliation conference first,” he said.

The World Vision Uganda peace building specialist, Isaac Joe said; “what criteria was used to select Kitgum. Massacres were held in Gulu, Lira and Soroti, why Kitgum and how are the children who were the major victims of the war benefiting from the museum?” asked Joe. He pointed out that the project should help wash out stigma of the conflict by instilling hope especially among the children.

Brig. Pascal Piwang the excombatant in the Uganda National Rescue Front (UNRF) II said the project was should address causes to conflicts than just show casing effects of war. “A lot of issues still remain unresolved regarding the conflict in northern Uganda. The museum is a good idea, we have seen many in Cambodia, Korea and West Africa but we should never rush at such things,” he said.

The director of planning at the Parliamentary Commission, Dison Okumu said efforts should be made in capturing experiences of the war from survivors.

Jeremiah Joseph one of the architects behind the museum-like structure said the designs of the structure was made by Graph design, a leading design firm in the United States.

Govt calls for cheap housing
Sunday, 17th October, 2010
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By Josephine Maseruka

THE Government has asked the Buganda Land Board to construct decent and affordable housing units.

The request was echoed on Wednesday by land state minister Michael Werikhe at the opening of a land and property fair at the Bulange Gardens in Kampala.

The board manages on behalf of the Kabaka the 3,500square miles and property which were returned to Buganda kingdom by the central government in 1993.

Werikhe assured Ugandans that the Government would not tax idle land.

He said the Government would instead support and organise public awareness programmes to educate the public to optimally utilise land to generate income.

Stephen Kituuka, the board deputy chairman, hailed the cordial working relationship between Mengo and the lands ministry. But he said it could only be maintained if the central government was committed to paying off over sh20b in accumulated rent arrears from use of kingdom properties.

Kituuka also asked the Government to include the board in making plans for the development of Kampala, where the kingdom owns over 45% of the land.

GM maize trials to begin in East Africa
Sunday, 17th October, 2010
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CONFINED field trials of genetically modified maize will begin in Kenya and Uganda this year once regulators approve it, the US-based non-profit African Agricultural Technology Foundation (AATF) said.

Scientists from Kenyan and Ugandan government research bodies, Monsanto and research body International Maize and Wheat Improvement Center (CIMMYT) developed the 12 varieties of Water Efficient Maize for Africa (WEMA) due to be planted.

Maize is the most widely grown staple food in Africa and is badly affected by drought. The scientists aim for the drought-resistant GM maize to increase yields by 24 to 35%.

“Everything we have seen in the simulated trials shows that we can safely test transgenic maize varieties in carefully controlled and confined field trials in Africa,” James Gethi, the WEMA-Kenya country coordinator, said in a statement seen by Reuters late on Thursday.

Scientists conducted mock trials in simulated conditions in Kenya and Tanzania in 2009.

The transgenic maize will now be planted in 1-2 hectare confined fields once Kenya and Uganda give regulatory approval.

The world’s poorest continent, where agriculture contributes up to a quarter of GDP in some countries and is an important source of foreign exchange, is increasingly turning to genetically modified crops to bolster food supplies.

But critics and consumers, mostly in Africa and Europe, have questioned the safety of GM foods and have banned their import or cultivation due to fears they could harm humans and wildlife.

If the maize is approved, it will be licensed to AATF, which is funded by the United States and British governments.

“The expected WEMA transgenic drought-tolerant maize seed will be sub-licensed to local seed companies royalty-free for a term or duration to be determined based on future product deployment agreements,” AATF Communications Officer Grace Wachoro said in a statement to Reuters.

“The confined field trials will enable the project to address safety issues.” AATF said the resulting trial maize crop will be destroyed in accordance with Kenyan and Ugandan research regulations.

Trials are also planned for South Africa, Mozambique and Tanzania.
More than 30 countries, including all of the European Union, have restricted or banned the production of GM crops because they are not considered proven safe.

Govt to set up trade markets at borders
Sunday, 17th October, 2010
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By Paul Tentena and David Ssempijja
THE Government intends to set up markets at all major border points in the country to boost trade, the trade ministry permanent secretary said last week.

The markets, Julius Onen said, would be constructed at the Ugandan borders of Abibiya, Mpondwe, Malaba, Mutukula and Katuna.

Onen said this during the 4th National Trade Sector Review Conference at the Speke Resort Munyonyo in Kampala.
He saisd the Government would ensure that all the non-tariff barriers to trade were eliminated, to propel trade in the East African region.

“We shall eliminate ours but also urge our neighbours to eliminate theirs.”
Onen promised to ensure that the influx of sub-standard goods especially from China is checked.

Uganda gets ‘B’ economic rating
Sunday, 17th October, 2010
http://www.newvision.co.ug/NP/1287388112kapapula.jpg
DECONGESTION PLANS: Municipal council officials look at the architectural plans of the proposed Tororo Central Market. Tororo and Mbale towns have the most congested markets across the country. For example, limited space in Mbale Central Market has forced several vendors to operate on the roads, causing traffic jams

By Sylvia Juuko
INTERNATIONAL credit rating agency Fitch has assigned Uganda a “B” rating with a positive outlook, though the country’s growth momentum is dampened by the ongoing tax dispute that has pitted the Government against exploration company Heritage Oil.

The rating issued on Friday was lower than last year’s outlook of “B+.”
Purvi Harlalka, the associate director at Fitch’s sovereigns group, explained that the agency’s positive outlook was based on Uganda’s two billion barrels of discovered oil that will have a large positive impact on its growth potential, balance of payments and public finances, once they come on-stream.

“However, the commercial development of the oil has stalled temporarily, pending the resolution of a tax dispute with the exploration companies and finalisation of plans to build a refinery.

“Failure to decisively settle these issues would push the production timeline back further and dampen the positive momentum,” Harlalka argued.

Fitch noted that the ratings was based on a robust growth performance and a track record of prudent macroeconomic management against low per capita incomes and a poor business climate.

“The ratings are also underpinned by the cautious administration of public finances, which has contained Uganda’s fiscal deficit (including grants) to an average of 2.1% of GDP over the last 10 years,” the agency said.

The highest rating for Fitch is AAA considered an investment grade.
Fitch pointed out that the fiscal discipline and low debt levels gave the country room to accommodate increased infrastructure spending that will lead to widening of the fiscal deficit to 3.9% of GDP in financial year 2011 from 1.7% in 2009.

Fitch indicated increasing domestic revenue collection that has stagnated at12-13% of GDP for over a decade as one of the areas that needed improvements.

It said revenue mobilisation efforts had yielded limited success in the past despite improved administration.

“This suggests that achieving the targeted 1.5% of GDP increase in the revenue ratio over the life of the new three-year policy support instrument signed with the International Monetary Fund may be difficult and Uganda may have to increase borrowing.”

The ratings are supported by stability under President Yoweri Museveni, who has ruled for the last 24 years.
Fitch expects him to be returned to power in the 2011 presidential polls for a fourth term though his prolonged rule highlights the importance of an orderly succession.

African countries are looking to ratings as an important precondition to accessing international markets.

u.g boy

October 18th, 2010, 07:27 PM

Uganda hits $1.02b FDI in nine months
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Paul Mwijagye

KAMPALA, UGANDA --Uganda has registered a steady flow of foreign direct investments (FDI) since the year begun, Uganda Investment Authority board chairman Patrick Bitature disclosed last week.

Statistics released by UIA indicate that for the last three quarters of the year (January to September 2010), a total of 263 projects were registered.

These projects were to invest about US$1.2billion and create 65, 476 jobs.

"Statistics for the last quarter alone (July to September 2010) indicate some surprises which further attest to the fact that new markets are finding Uganda attractive," said Bitature.

He said Ugandans continue to be the leading investors in the country.

"Ugandan investments continue to be the leading source of investment for the quarter with 40 projects, worth a planned investment value of $178.1million, envisaged to create 11, 338 jobs," Bitature further noted.

On a quarterly basis, the third quarter of the year (July to September) had 93 planned projects, an investment value of $339.7million and 15,307 jobs.

The second quarter had 84 projects, a planned investment value of $310.8million and 17, 571 jobs whereas the first quarter of the year (January to March) registered 86 projects, a planned investment value of $371.4million and 32,598 jobs.

The 10 leading countries to invest in Uganda are the Netherlands that tops the list with two planned projects in mining and manufacturing, followed by India, China, Belgium, Kenya, Sweden, United Kingdom, Italy, Denmark, and Austria.

Bitature said most of the investment from local and foreign investors was recorded in real estate, business and financial services sectors.

"This was followed by manufacturing, mining, construction and agricultural sectors," Bitature noted.

He said with the country's growing economy, Uganda has joined 'Lions on the Move.' Lions on the Move is a report on the progress and potential of African economies compiled by the McKinsey Global Institute.

Using their surveys, data from the International Monetary Fund and the World Bank Development Indicators, among others, the institute has established that Africa was the third fastest growing continent averaging 4.95% growth between 2002 and 2008, following Asia and the Middle East.

The report places Uganda among the frontrunner lions in the transition economies which comprise Kenya, Cameroon, Senegal, Mozambique, and Zambia.

"The report indicates that Uganda and Ghana are set to benefit from recent oil discoveries that will no doubt generate the increased revenue that will spur further diversification," said Bitature.

He said Uganda's image continues to improve through international events such as the Shangai Expo in China where the Ugandan stall has attracted over 18million visitors.

Bitature also said other events such as Kipsiro's double gold win at the Commonwealth games in India, the Uganda Cranes leading their group in the African Cup of Nations qualifiers and Ugandan artiste Maurice Kirya winning the Radio France International Discovery Music Award demonstrate that Uganda's image is improving tremendously.

"We thank all individuals who make it happen," he said.

u.g boy

October 20th, 2010, 05:25 PM

u.g boy

October 20th, 2010, 05:41 PM

Sh11.6b power line to light up Dokolo
Tuesday, 19th October, 2010
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Ogong, Okello, Ogwal and other politicians perform the ground-breaking ceremony
By Ronald Kalyango

Residents of Dokolo, Kaberamaido and Amolatar districts will soon be connected to the electricity main grid after 25 years in darkness. The extension of the power line, which was vandalised during the LRA war, was recently launched.

The over 200km power line, estimated to cost sh11.6b, is funded by the Government through the Rural Electrification Agency. LTL projects, Muringa Holdings and the Power and City Contractors are undertaking the civil works expected to last 15 months.

Speaking at the ground-breaking ceremony at Angwecibange Primary School on Saturday, Dokolo district chairperson Okello Okello asked residents to always use peaceful means to solve conflicts.

“We have spent 25 years in darkness and it is my prayer that in future, we never resort to violence because it destroys infrastructure,” Okello said. The Rural Electrification Agency spokesperson, Dr. Patricia Litho, assured residents that property that will be destroyed during the implementation of the project will be compensated for.

“We shall quantify all destroyed crops after the construction of the power line,” Litho said. She said the agency’s priority was to extend power to district headquarters, agro-processing and ICT centres, health facilities, educational institutions and water supply plants.

Litho added that her office would sensitise residents on the productive uses of power. Dokolo Woman MP Celia Ogwal commended the politicians who lobbied the Government to extend power to the district.

“I am impressed by the maturity of politicians in Dokolo district. We need to continue with this spirit and lobby for more services for our electorates,” Ogwal said.

She also urged the Government to address the poor state of health centres and institutions of learning in the district. “Although electricity will help us get investors in the areas of agro-processing to add value to our produce, the Government, in the meantime, should also address the poor state of our social facilities,” she said.

Dokolo MP Okot Ogong asked the electorate to vote for President Yoweri Museveni next year to continue developing the area. “We have always reminded the President about extending power to our area. Now that he has responded, we need to reward him with more votes.”

Govt in secret search for oil refinery site
Tuesday, 19th October, 2010

BY IBRAHIM KASITA

Uganda is silently searching land to build a proposed 200,000 barrels per day oil refinery, a tactic that strives to avoid speculators from hiking prices and making the project expensive.

This is after studies confirmed the economic and financial viability of the project. The report, which was conducted by Foster Wheeler Energy, a UK-based firm, has been submitted to the Government.

“There is market for the products that will be refined as demand is increasing with a growing population not only in Uganda, but also in Southern Sudan, DR Congo, Rwanda and Burundi,” Bright Irumba, a geologist in the energy ministry’s petroleum and production department, said.

He was guiding a delegation from the World Wildlife Fund for Nature on a field trip to the Albertine Rift, where oil and gas have been confirmed.

The delegation wanted to learn and share experience on Uganda’s oil success.

“We are looking for land but we do not want people to know where the refinery is located because prices of land will shoot up.

“We are doing it quietly,” Irumba disclosed. He explained that operational and environmental costs of the refinery were manageable since the benefits “are really very high.”

According to statistics, refining crude oil locally requires about $5.5b, while exporting the hydrocarbon could cost about $11b.

Apart from the low costs involved, producing the oil and gas locally is more rewarding because it will provide direct and indirect jobs to Ugandans, easing the high unemployment rate.

Besides meeting the local energy demands for the major oil products –kerosene, aviation fuel, diesel and petrol –there are also other by-products from oil that can be used in building roads, and making various products like plastics and jellies.

Irumba pointed out that the refinery is expected to process Uganda crude oil for domestic consumption and export.

US govt injects sh15b into tourism
Tuesday, 19th October, 2010
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By Paul Tentena

The US government has invested $6m (about sh15b) in the development of sustainable tourism in Uganda, a top official disclosed last week.

Suudi Bamulesewa, the United States Agency for International Development (USAID) team leader in Uganda, explained that the investment would run for five years.

This, he pointed out, was in addition to the over $30m his agency had already invested in conservation projects.

“The US government wants to make Uganda’s tourism vibrant. “For the next five years it has committed $6m for sustainable tourism development,” said Bamulesewa.

He was speaking during the closure of the Big Birding Festival at the Kingdom Katomi Resort in Entebbe over the weekend.

Bamulesewa disclosed that the US government, through tourism, wanted to increase incomes of the rural poor who have not benefited from the resources that are paid by tourists after visiting the national parks and game reserves.

He noted that sustainable tourism development had the potential to drive the economy since the country is ranked among the best top 10 in the world in terms of bio-diversity.

James Rutaro, the director of conservation in the tourism ministry, who represented minister Maj. Gen Kahinda Otafiire, said the Government would set up a tourism satellite account to capture all data on the sector.

“The truth is that we have been missing enough data in the tourism sector.

“But soon we shall set up a tourism satellite account to ensure that all data is collected and stored safely,” Rutaro pointed out.

He said the Government would prioritise birding as one of the key elements in tourism to generate more revenue.

Rutaro said statistics showed that Uganda received just over 840,000 tourists last year, most of whom were conference attendees and birders.

Stephen Masaba, the Uganda Wildlife Authority business development manager, told the participants that Ugandans were keenly picking interest in tourism, a good sign for the development of domestic tourism.

u.g boy

October 20th, 2010, 11:21 PM

Former LRA youth get sh6b
http://www.newvision.co.ug/NP/1287588152Untitled-3.jpg
Education ministry’s Christopher Oketcho talking to Norwegian council officials during a tour of the youth education pack center at Mican in Gulu district on Monday

By Chris Ocowun

Over 19,000 youth, who were affected by the LRA war in Acholi sub-region, are to benefit from a three-year sh6b Recovery for Acholi Youth programme under the Norwegian Refugee Council.

According to council’s education manager, Jonah Rotich, the organisation has established 50 accelerated learning progrogrammes in Gulu, Kitgum, Pader, Amuru, Nwoya and Agago districts to provide education to 15,000 orphans, child-mothers, former LRA abductees, and other war affected children in the region.

Rotich said 2,400 youth would be trained in catering and cookery, carpentry and joinery, brick laying, concrete practice and tailoring. He added that the council would also construct 70 teachers’ houses in 35 selected primary schools in the region.

Rotich disclosed the plans during a dissemination meeting of a baseline survey conducted by the council at Bomah Hotel in Gulu district on Tuesday.

He told officials from the education ministry that the 15,000 children, who are to benefit from the accelerated learning programme, will spend three years in primary level instead of the seven years before joining the mainstream universal secondary education schools.

“We shall compress the syllabus within three years,” Rotich noted. He added that they would use the existing government structures in the Universal Primary Education schools to implement the programme.

Soroti-Mbale road repairs to start
Wednesday, 20th October, 2010
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Due: 90km of the Kampala-Mbarara road will be ready by December

Due: 90km of the Kampala-Mbarara road will be ready by December

By Samuel Balagadde

REPAIRS on the 140km Soroti-Mbale-Tororo road will start early next month, Dan Alinange, the spokesperson of the roads agency, UNRA, has said.

Dott Services will undertake the project, which will cost sh90b in the first phase.

The road has many potholes, depressions, deep edge break and eroded shoulders, affecting traffic flow. This also results into high vehicle operational costs, Alinange said.

The work will involve resealing of the road with aggregates, he explained.

He added that the second phase would involve widening the road.

“This road is expected to bring remarkable improvement in the economic activities and welfare of the people along the route because farmers will have easy access to marketts,” said Alinange

Meanwhile, a section of 90km of the 154km-Kampala-Mbarara road will be handed over to the Government in December, the roads agency has said. Reconstruction of the road started in 2008.

What Uganda needs to do to penetrate Chinese Market?
Wednesday, 20th October, 2010
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By David Mugabe in Shanghai, China

UGANDA will have to do much more aggressive marketing of its exports in order to penetrate and gain value from the rapidly expanding Asian and most especially the Chinese market.

Uganda Investment Authority (UIA) recorded planned investments from China and India of approximately $276m and $149m respectively in the 2009/2010 year. The two states, alongside Brazil, are the emerging global powers.

To have a symbiotic and gainful relation with the emerging powers whose relationships with Africa appear less exploitative than the decades of toeing with the West, experts point at a focused attempt at strategic marketing, promotion and adding value to products where Uganda has an edge.

“Not many Chinese visit Africa mainly because of lack of knowledge and poor transport. Uganda tourism department should do a promotion in China,” said Zhu Shanzhoug, China’s deputy director general of national tourism administration.

China is now the lead investor in Uganda, according to UIA.

Trade statistics are still greatly slanted in China’s favour.

The glaring trade imbalance currently stands at a ratio of 9:1.

According to the Chinese ministry of commerce, during the first half of 2010 (January to June), total trade between Uganda and China stood at $103.94m. Of this, China’s exports to Uganda were $87.29m (84%) while imports from Uganda were $16.7m.

However, there was a 5% increase compared to the same period in 2009.

Uganda mainly exports coffee, cotton, oil seeds, fish, timber and minerals while imports into Uganda include textile, electronics, furniture and footwear.

“Uganda’s discovery of oil and abundant mineral resources are expected to attract more Chinese investors and assist in reducing the trade deficit,” said the Chinese commerce ministry report. China has also offered preferential tariff treatment for over 4,000 products from Uganda. The key sectors that Uganda can cash in are tourism, coffee and processed agriculture products.

One of the key products that has broken ground in China is the Uganda Crane coffee, a joint venture initiative between the Uganda Coffee Development Authority and Beijing North Star Industrial Group. Crane coffee is roasted in Beijing.

But officials say a lack of a clear marketing procedure has withered serious progress.

The Crane coffee is a clear brand that has passed all the quality tests and is accepted in the Chinese market.

Jamada Kiyemba, the roaster and face behind the Crane coffee, says several neighbouring African states like Ethiopia and Kenya do not have the advantage that Uganda has because of having an established factory and a brand in mainland China.

“China as a superpower is bound to grow and drinking coffee is bound to take off. It is a matter of time and it is our opportunity,” said Kiyemba.

In Kiyemba’s estimation, it is only a matter of time before the hundreds of millions of Chinese jump onto the coffee drinking binge which will mean a billion dollar industry for Uganda, if it is well positioned. But Uganda needs to pump money into promoting her coffee.

“We are the only country doing this and we have a chance. We need to prioritise or privatise the company to move it to the next level,” said Kiyemba.

To illustrate the power and value of promotion, statistics from China customs indicate that Uganda green coffee exports to mainland China for the first half of 2010 was 2,200 tonnes, with a value of $7.6m

“This is a significant increase of almost double the exports in the whole of 2009 (1,000 tonnes). This signals confidence and great opportunity for the coffee sector in Uganda.”

“However, in May and June, an average increase of approximately 30% was registered and this was mainly attributed to the Shanghai expo 2010,” according to Chinese officials.

The Shanghai expo has been a good opportunity to showcase Uganda’s coffee and tourism.

Southern China, the venue of the expo, has the highest number of coffee consumers mainly because of a developed coffee drinking culture and higher incomes.

This, according to analysts, is the goldmine that awaits Ugandan coffee.

To achieve this, Kiyemba recommends that Crane Coffee be left in private hands because private enterprises run businesses better than Government.

Investing in marketing and promotion for tourism is also seen as a potential payoff.

There is, however, a revived effort in selling this prized export boosted by government’s increased funding to the sector for the last two years although tourism experts say the promotional cash is just a drop in the ocean.

New design of hives spur bee-keeping industry
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Kaddu displaying materials used in making the interiors of the frame bee hives

By David Ssempijja

JOHN Kaddu’s interest in bee-keeping began in 1977, inspired by the luxurious lifestyle his late friend, Boniface Ndimusanga, had enjoyed during their schools days at Kako Secondary.

Ndimusanga was the biggest spender at school and his money came from bee-keepingwhich prompted Kaddu to follow suit.

For two years, Kaddu studied and worked in bee-keeping, until 1979 when he lost his father to the political turbulence.

“After his death, I made a decision to persevere with bee-keeping, which helped me triumph over the challenges associated with being an orphan,” Kaddu says.

Though the bee-keeping business was moving on well, Kaddu says he felt discomfited with the rudimentary ways of conducting it.

“The hives were poorly designed in cylindrical form, woven with forest climbers, which was known for constraining honey harvest and productivity,” he adds.

In 1984, Eria Nsubuga Nvule, the then head of the Ministry of Agriculture’s apiculture department, was impressed with Kaddu’s level of work and offered him a job as a field trainee.

This was part of the implementation of the Care International project of improving bee-keeping in Uganda. The project progressed, but in 1987, the department was scraped from the ministry and was only re-instated in 1994. Kaddu then enrolled at Nakawa Vocational Training Institute, where he acquired machinery and fabrication qualifications.

“Fortunately, when the project was renewed and reached a stage of providing hives to farmer groups, I was given a multi-million deal to fabricate the top-bar hives,” he says.

Kaddu’s experience in manufacturing hives has helped spur the bee farming sub-sector, to the extent that he has been able to improve on technology, leading him into manufacturing the Langthroth frame hives.

“Spending decades in the bee-keeping business enabled me to learn the behaviour of bees. The hives I manufacture are in line with what bees need to ensure controlled rates of multiplication, easy comb-formation and high honey productivity,” he says.

Frame hives are designed with multiple chambers that serve different roles. Some chambers are solely for breeding while others are for storing honey and another chamber serves as queen excluders.

The hives, sold at sh140,000 each, are made out of durable wood with the capacity to outlive harsh weather conditions.

A single frame hive can produce 60 kilos of honey per year. 1.2 kilos of honey is equivalent to one litre. On the open local market, a kilo of unprocessed and processed honey is sold at sh7,000 and sh10,000 respectively.

Honey harvested from the frame hives is three times more than from the conventional top-bar hive or the cylindrical woven ones.

Progress in the industry has attracted many other dealers in support equipment. Mathias Nkemba, the manager for East African Beekeeper Equipment Manufacturers, says their expertise in manufacturing Langthroth hives has improved the industry, despite the farmer training gaps that still constrain business.

“We pray the Government considers funding the training of beekeepers so that many get abreast with the new technology of modern beekeeping,” Nkemba said.

Kaddu’s bee-hive technological works has enhanced benefits from bee-keeping for it has made vital steps in transforming the sub-sector from subsistence into commercial production.

Though Kaddu gets individual clients, his biggest orders are placed by corporate and charitable organisations involved in helping to boost capacity for bee-keeping farmer organisations, including the National Agriculture Advisory Services, Uganda Women Efforts to Save Orphans, the International Red Cross and the United Nations Industrial Development Organisation.

Kemba and Kaddu are confident that the future of beekeeping is bright given that production has not yet satisfied the local demand.

Low levels of hive colonisation (bee hive occupancy) remain one of the biggest challenges facing Kaddu’s business, a problem that may compel him to start colony breeding for queen bees to multiply bees and sell them to farmers, he says.

Bio-sand filter, a solution to dirty water
http://www.newvision.co.ug/NP/1287593895ezraman.jpg
Musaazi demonstrates how the bio-sand filter works

By Sylvia Juuko

A BIO-SAND Filter is one of the simple solutions needed by Ugandan communities that have for long suffered from using dirty water sources.

“A bio-sand filter uses layers that can filter the water clean without the need to boil it,” explains Doctor Moses Musaazi.

The product is one of the several from Technology for Tomorrow, an innovative company that produces energy saving products which also provides consultancy allover Uganda and Africa.

“It’s a hollow structure that you fill with stones and sand. When you pour water on top, it forms a biological layer. When you pour the dirty water into the facility, it goes through the layer which captures any bacteria. The water is filtered by stones and sand to the bottom and up again. By the time the journey is completed, it’s pure,” he adds.

Musaazi says the facility filters one litre of water per minute which means that one needs 20 minutes to fill a twenty-litre jerrycan.

“The bio-sand filter costs sh150,000 and it can be used by a home or a community. You invest once and get results over and over again,” Musaazi says.

“The water we drink at the river went through the same process from the highlands and we have done a small replica. This has been tested in a laboratory and is clean, so there shouldn’t be any fear of contamination,” says Musaazi of the process.

While about 200 bio-sand filters have been sold, Musaazi acknowledges the need for sensitisation about the process to allow more uptakes.

The innovator is now thinking of adding Moringa seeds to the filter so that even storm water which runs off the road can be cleaned to drinkable state.

Musaazi, an engineer, has innovations in the areas of safe water, sustainable building, solid waste disposal and sanitation and girl-child education.

The first eco-friendly pads made out of papyrus is an innovation of Musaazi’s.

u.g boy

October 21st, 2010, 05:19 PM

Former LRA youth get sh6b
Wednesday, 20th October, 2010
http://www.newvision.co.ug/NP/1287588152Untitled-3.jpg
Education ministry’s Christopher Oketcho talking to Norwegian council officials during a tour of the youth education pack center at Mican in Gulu district on Monday
By Chris Ocowun

Over 19,000 youth, who were affected by the LRA war in Acholi sub-region, are to benefit from a three-year sh6b Recovery for Acholi Youth programme under the Norwegian Refugee Council.

According to council’s education manager, Jonah Rotich, the organisation has established 50 accelerated learning progrogrammes in Gulu, Kitgum, Pader, Amuru, Nwoya and Agago districts to provide education to 15,000 orphans, child-mothers, former LRA abductees, and other war affected children in the region.

Rotich said 2,400 youth would be trained in catering and cookery, carpentry and joinery, brick laying, concrete practice and tailoring. He added that the council would also construct 70 teachers’ houses in 35 selected primary schools in the region.

Rotich disclosed the plans during a dissemination meeting of a baseline survey conducted by the council at Bomah Hotel in Gulu district on Tuesday.

He told officials from the education ministry that the 15,000 children, who are to benefit from the accelerated learning programme, will spend three years in primary level instead of the seven years before joining the mainstream universal secondary education schools.

“We shall compress the syllabus within three years,” Rotich noted. He added that they would use the existing government structures in the Universal Primary Education schools to implement the programme.

Soroti-Mbale road repairs to start
Wednesday, 20th October, 2010
http://www.newvision.co.ug/NP/1287591606ezraman.jpg
Due: 90km of the Kampala-Mbarara road will be ready by December
By Samuel Balagadde

REPAIRS on the 140km Soroti-Mbale-Tororo road will start early next month, Dan Alinange, the spokesperson of the roads agency, UNRA, has said.

Dott Services will undertake the project, which will cost sh90b in the first phase.

The road has many potholes, depressions, deep edge break and eroded shoulders, affecting traffic flow. This also results into high vehicle operational costs, Alinange said.

The work will involve resealing of the road with aggregates, he explained.

He added that the second phase would involve widening the road.

“This road is expected to bring remarkable improvement in the economic activities and welfare of the people along the route because farmers will have easy access to marketts,” said Alinange

Meanwhile, a section of 90km of the 154km-Kampala-Mbarara road will be handed over to the Government in December, the roads agency has said. Reconstruction of the road started in 2008.

Transparency is what is needed in the oil and gas industry
Wednesday, 20th October, 2010
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By Ibrahim Kasita

WHY are Africa’s mineral-rich nations “resource-cursed” and not the foreign companies that exploit the wealth?”

The answer is simple: these businesses are manipulative, secretive and not transparent when dealing with government officials yet they are not obliged to report on their activities.

The businessess have triggered conflict and fuelled corruption to help them exploit the oil resource and make profit.

But this scenario could change if new rules mandating businesses to report payments they make to governments and other key information on a country-by-country basis.

Uganda stands to immensely benefit from this rule. Not only would the new rules stop secrecy and confidentiality, but also empower individuals, especially the local communities, to access vital information they need to defend their land, monitor revenues, and protect their rights and environment.

“Everything in the oil industry has been done in secrecy despite the fact that there exists the access to information laws,” Dickens Kamugisha of the African Institute of Energy Governance, said.

“If the new rules come in place, they will enhance the desired public debate and enable citizens to make decisions based on the information available,” Kamugisha added.

Benefits of the proposed rules
The International Accounting Standards Board is exploring options for reforms of the exploration and evaluation of mineral resources, which will entail oil, mining and gas companies to report their activities on a country-by-country basis.

This means, for example, that actors in the extractive industries in Uganda must disclose all their operation costs, mineral reserves, production costs and payments.

With such information, ordinary people would be able to demand accountability and ensure that a fair price is paid for their natural resources.

The proposed rules are also good for business because the more informed an investor is on the business practice of a company’s operation in high risk areas, the more equipped they are to assess the risks and strength of their investment choices.The new rules could be implemented mid-next year.

There are fears that disclosing tax payments on a country-by-country basis may breach confidentiality agreements that they have with the Government.

Although most confidentiality clauses in contracts indicate that no part of the contract could be disclosed without written consent of the other parties, the same clauses include some standard exceptions that would permit the disclosure of information for compliance with the law and regulations.

Emphasis on oil and gas
Two leading non-for-profit bodies, Publish What You Pay and Revenue Watch International, have advocated that oil companies disclose information on payments to governments, oil reserves, production volumes, production revenues, costs and key subsidiaries.

“Although it is not a silver bullet, there is no doubt that country-by-country reporting would benefit corporate and public governance, impede corruption and tax evasion as well as accelerate growth, resource mobilization and ultimately social development and poverty reduction in resource dependent countries,” the two bodies noted in their background briefings.

“It would also help capital providers reduce financial and reputational risk from investments in companies that are engaged in extractive industries,” the briefings added.

Neither governments nor investors like to divulge details on oil, gas and mineral contracts, or their reasons for secrecy.

Revenue Watch International in its report, “Contracts confidential: Ending secret deals in the extractive industries,” said the contract transparency was “sorely needed to improve the management of natural resource wealth, in particular in developing nations where such resources often account for more than half of the national income.”

Keeping oil contracts secret enables increased environmental degradation, human rights abuses, conflict, displacement of communities and mismanagement.

There is unlikely to be sustainable development based on oil revenue unless people are involved in the decision-making process and informed at every step.

Transparency of contracts is widely rcognised as a necessary element of any effort to promote the responsible management of natural resources for growth and economic development.

Improved transparency would enable governments to negotiate better deals as the information asymmetry between governments and companies closes.

The 2008 National Oil and Gas Policy states that “openness and access to information are fundamental rights in activities that may positively or negatively impact individuals, communities and states.”

“It is important that information that will enable stakeholders to assess how their interests are being affected is disclosed,” the policy asserts.

“This policy shall therefore promote high standards of transparency and accountability in licensing, procurement, exploration, development and production operations as well as management of revenues from oil and gas.”

The policy will also support disclosure of payments and revenues from oil and gas using principles in line with accepted national and international financial reporting standards.

Bio-sand filter, a solution to dirty water
Wednesday, 20th October, 2010

http://www.newvision.co.ug/NP/1287593895ezraman.jpg
Musaazi demonstrates how the bio-sand filter works
By Sylvia Juuko

A BIO-SAND Filter is one of the simple solutions needed by Ugandan communities that have for long suffered from using dirty water sources.

“A bio-sand filter uses layers that can filter the water clean without the need to boil it,” explains Doctor Moses Musaazi.

The product is one of the several from Technology for Tomorrow, an innovative company that produces energy saving products which also provides consultancy allover Uganda and Africa.

“It’s a hollow structure that you fill with stones and sand. When you pour water on top, it forms a biological layer. When you pour the dirty water into the facility, it goes through the layer which captures any bacteria. The water is filtered by stones and sand to the bottom and up again. By the time the journey is completed, it’s pure,” he adds.

Musaazi says the facility filters one litre of water per minute which means that one needs 20 minutes to fill a twenty-litre jerrycan.

“The bio-sand filter costs sh150,000 and it can be used by a home or a community. You invest once and get results over and over again,” Musaazi says.

“The water we drink at the river went through the same process from the highlands and we have done a small replica. This has been tested in a laboratory and is clean, so there shouldn’t be any fear of contamination,” says Musaazi of the process.

While about 200 bio-sand filters have been sold, Musaazi acknowledges the need for sensitisation about the process to allow more uptakes.

The innovator is now thinking of adding Moringa seeds to the filter so that even storm water which runs off the road can be cleaned to drinkable state.

Musaazi, an engineer, has innovations in the areas of safe water, sustainable building, solid waste disposal and sanitation and girl-child education.

The first eco-friendly pads made out of papyrus is an innovation of Musaazi’s.

New design of hives spur bee-keeping industry
Wednesday, 20th October, 2010
http://www.newvision.co.ug/NP/1287593745ezraman.jpg
Kaddu displaying materials used in making the interiors of the frame bee hives
By David Ssempijja

JOHN Kaddu’s interest in bee-keeping began in 1977, inspired by the luxurious lifestyle his late friend, Boniface Ndimusanga, had enjoyed during their schools days at Kako Secondary.

Ndimusanga was the biggest spender at school and his money came from bee-keepingwhich prompted Kaddu to follow suit.

For two years, Kaddu studied and worked in bee-keeping, until 1979 when he lost his father to the political turbulence.

“After his death, I made a decision to persevere with bee-keeping, which helped me triumph over the challenges associated with being an orphan,” Kaddu says.

Though the bee-keeping business was moving on well, Kaddu says he felt discomfited with the rudimentary ways of conducting it.

“The hives were poorly designed in cylindrical form, woven with forest climbers, which was known for constraining honey harvest and productivity,” he adds.

In 1984, Eria Nsubuga Nvule, the then head of the Ministry of Agriculture’s apiculture department, was impressed with Kaddu’s level of work and offered him a job as a field trainee.

This was part of the implementation of the Care International project of improving bee-keeping in Uganda. The project progressed, but in 1987, the department was scraped from the ministry and was only re-instated in 1994. Kaddu then enrolled at Nakawa Vocational Training Institute, where he acquired machinery and fabrication qualifications.

“Fortunately, when the project was renewed and reached a stage of providing hives to farmer groups, I was given a multi-million deal to fabricate the top-bar hives,” he says.

Kaddu’s experience in manufacturing hives has helped spur the bee farming sub-sector, to the extent that he has been able to improve on technology, leading him into manufacturing the Langthroth frame hives.

“Spending decades in the bee-keeping business enabled me to learn the behaviour of bees. The hives I manufacture are in line with what bees need to ensure controlled rates of multiplication, easy comb-formation and high honey productivity,” he says.

Frame hives are designed with multiple chambers that serve different roles. Some chambers are solely for breeding while others are for storing honey and another chamber serves as queen excluders.

The hives, sold at sh140,000 each, are made out of durable wood with the capacity to outlive harsh weather conditions.

A single frame hive can produce 60 kilos of honey per year. 1.2 kilos of honey is equivalent to one litre. On the open local market, a kilo of unprocessed and processed honey is sold at sh7,000 and sh10,000 respectively.

Honey harvested from the frame hives is three times more than from the conventional top-bar hive or the cylindrical woven ones.

Progress in the industry has attracted many other dealers in support equipment. Mathias Nkemba, the manager for East African Beekeeper Equipment Manufacturers, says their expertise in manufacturing Langthroth hives has improved the industry, despite the farmer training gaps that still constrain business.

“We pray the Government considers funding the training of beekeepers so that many get abreast with the new technology of modern beekeeping,” Nkemba said.

Kaddu’s bee-hive technological works has enhanced benefits from bee-keeping for it has made vital steps in transforming the sub-sector from subsistence into commercial production.

Though Kaddu gets individual clients, his biggest orders are placed by corporate and charitable organisations involved in helping to boost capacity for bee-keeping farmer organisations, including the National Agriculture Advisory Services, Uganda Women Efforts to Save Orphans, the International Red Cross and the United Nations Industrial Development Organisation.

Kemba and Kaddu are confident that the future of beekeeping is bright given that production has not yet satisfied the local demand.

Low levels of hive colonisation (bee hive occupancy) remain one of the biggest challenges facing Kaddu’s business, a problem that may compel him to start colony breeding for queen bees to multiply bees and sell them to farmers, he says.

What Uganda needs to do to penetrate Chinese Market?
Wednesday, 20th October, 2010

By David Mugabe in Shanghai, China

UGANDA will have to do much more aggressive marketing of its exports in order to penetrate and gain value from the rapidly expanding Asian and most especially the Chinese market.

Uganda Investment Authority (UIA) recorded planned investments from China and India of approximately $276m and $149m respectively in the 2009/2010 year. The two states, alongside Brazil, are the emerging global powers.

To have a symbiotic and gainful relation with the emerging powers whose relationships with Africa appear less exploitative than the decades of toeing with the West, experts point at a focused attempt at strategic marketing, promotion and adding value to products where Uganda has an edge.

“Not many Chinese visit Africa mainly because of lack of knowledge and poor transport. Uganda tourism department should do a promotion in China,” said Zhu Shanzhoug, China’s deputy director general of national tourism administration.

China is now the lead investor in Uganda, according to UIA.

Trade statistics are still greatly slanted in China’s favour.

The glaring trade imbalance currently stands at a ratio of 9:1.

According to the Chinese ministry of commerce, during the first half of 2010 (January to June), total trade between Uganda and China stood at $103.94m. Of this, China’s exports to Uganda were $87.29m (84%) while imports from Uganda were $16.7m.

However, there was a 5% increase compared to the same period in 2009.

Uganda mainly exports coffee, cotton, oil seeds, fish, timber and minerals while imports into Uganda include textile, electronics, furniture and footwear.

“Uganda’s discovery of oil and abundant mineral resources are expected to attract more Chinese investors and assist in reducing the trade deficit,” said the Chinese commerce ministry report. China has also offered preferential tariff treatment for over 4,000 products from Uganda. The key sectors that Uganda can cash in are tourism, coffee and processed agriculture products.

One of the key products that has broken ground in China is the Uganda Crane coffee, a joint venture initiative between the Uganda Coffee Development Authority and Beijing North Star Industrial Group. Crane coffee is roasted in Beijing.

But officials say a lack of a clear marketing procedure has withered serious progress.

The Crane coffee is a clear brand that has passed all the quality tests and is accepted in the Chinese market.

Jamada Kiyemba, the roaster and face behind the Crane coffee, says several neighbouring African states like Ethiopia and Kenya do not have the advantage that Uganda has because of having an established factory and a brand in mainland China.

“China as a superpower is bound to grow and drinking coffee is bound to take off. It is a matter of time and it is our opportunity,” said Kiyemba.

In Kiyemba’s estimation, it is only a matter of time before the hundreds of millions of Chinese jump onto the coffee drinking binge which will mean a billion dollar industry for Uganda, if it is well positioned. But Uganda needs to pump money into promoting her coffee.

“We are the only country doing this and we have a chance. We need to prioritise or privatise the company to move it to the next level,” said Kiyemba.

To illustrate the power and value of promotion, statistics from China customs indicate that Uganda green coffee exports to mainland China for the first half of 2010 was 2,200 tonnes, with a value of $7.6m

“This is a significant increase of almost double the exports in the whole of 2009 (1,000 tonnes). This signals confidence and great opportunity for the coffee sector in Uganda.”

“However, in May and June, an average increase of approximately 30% was registered and this was mainly attributed to the Shanghai expo 2010,” according to Chinese officials.

The Shanghai expo has been a good opportunity to showcase Uganda’s coffee and tourism.

Southern China, the venue of the expo, has the highest number of coffee consumers mainly because of a developed coffee drinking culture and higher incomes.

This, according to analysts, is the goldmine that awaits Ugandan coffee.

To achieve this, Kiyemba recommends that Crane Coffee be left in private hands because private enterprises run businesses better than Government.

Investing in marketing and promotion for tourism is also seen as a potential payoff.

There is, however, a revived effort in selling this prized export boosted by government’s increased funding to the sector for the last two years although tourism experts say the promotional cash is just a drop in the ocean.

u.g boy

October 21st, 2010, 09:46 PM

MPs want UEGCL to build big power plants
Wednesday, 13th October, 2010
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By John Odyek and Paskazia Tumwesigye

MEMBERS of Parliament want the Uganda Electricity Generation Company Limited (UEGCL) to construct big hydro-power dams to generate the badly needed electricity instead of leaving a few projects to private companies.

The recommendation was made by the parliamentary committee on commissions, statutory authorities and state enterprises yesterday after learning that only a few private companies were investing in the generation of electricity.

The MPs also heard that the Government-owned UEGCL was not mandated to construct hydro-power plants.

Top management of the company had appeared before the committee to answer queries in the Auditor General’s report .

Reagan Okumu, the committee chairperson, said electricity generation was a strategic sector, relevant for economic and security stability.

“If private people walk away it will be a disaster for the country,” he noted.

Okumu argued that some of the small hydro power projects being fronted by UEGCL as public-private partnerships had taken long to get completed.

He cited Ayago, Karuma and Isimba projects, which he said had documented potential but were still undergoing studies instead of constructing power plants as agreed.

John Mugyenzi, the UEGCL boss, explained that in 1999, the Uganda Electricity Board was split into three sections of generation, transmission and distribution, with the hope that many private investors would be attracted to the sector, which did not happen.

He explained that a hydro-power development unit had been transferred from the energy ministry to his company.

Mugyenzi also dismissed claims that the construction of more hydro-power projects on the River Nile would affect the flow of water to Egypt.

The AG queried the conflict between Uganda and Egypt over adequate water for generating electricity at Kiira and Nalubaale power stations.

“The beauty of a hydro power project is that you don’t use the water. Water is briefly held at the dam but the flow from up stream pushes it and flows without interference,” he said.

u.g boy

October 22nd, 2010, 11:35 AM

Health ministry recovers sh1b Global Fund money
Thursday, 21st October, 2010
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By Mary Karugaba and P. Tumwesigye

THE health ministry yesterday released a new list of individuals and institutions that have refunded the Global Fund money.

According to the list of recoveries submitted to the public accounts committee yesterday by the ministry’s accounting officer, Kyambadde Ssenyongo, sh1b has been recovered of the sh3b misappropriated.

The funds were meant to fight malaria, tuberculosis and HIV/AIDS.

However, the figure is contrary to a recent revelation by the Director of Public Prosecutions, Richard Butera, that sh2.3b had been recovered by April and deposited at the Central Bank by individuals and institutions implicated in the scam.

“Recoveries are being made though the matter is before court. So far, sh1.1b has been recovered. We have not got all the money, but some recoveries are being made through the DPP,” he said.

Ssenyonga was appearing before the committee to answer questions raised in the auditor general’s report to parliament for the year 2008.

The report raised issues of unsupported expenditures, forged accountabilities, unaccounted for funds and questionable payments for travels.

The Global Fund scam was unearthed in 2005 by Pricewaterhousecoopers, an audit firm, leading to the suspension of the fund by donors.

President Yoweri Museveni appointed a judicial commission of inquiry to probe the allegations of misappropriation.

The commission, headed by Justice James Ogoola, unearthed various irregularities and implicated a number of people and NGOs, including the then three health ministers, Jim Muhwezi, Mike Mukula and Alex Kamugisha.

Ogoola called for further investigation, criminal prosecution and the refund of sh3b.

The committee, chaired by Nandala Mafabi, however, agreed to launch new investigations into the matter and directed the health ministry to submit names of individuals who obtained money through the institution.

“This is going to be a special issue for us. The public should know the people who eat money meant for people living with HIV,” Mafabi said.

A number of officials have since been convicted over the misuse of the funds.

They include Teddy Seezi Cheeye, former director of economic monitoring in the Internal Security Organisation. He was convicted for misappropriating money allocated to his organisation, Uganda Centre for Accountability.

Cheeye was sentenced to 10 years imprisonment and is supposed to refund sh110m of the sh120m advanced to his organisation.

Others are former director of programmes in the defunct Uganda Television, Salongo Kavuma, who was sentenced to five years imprisonment and is supposed to refund sh49m. Annaliza Mondon and Elizabeth Ngororano were also ordered to refund the money in addition to serving their prison sentences.

Health sector gets sh67b
Thursday, 21st October, 2010
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By Mary Karugaba

FEMALE MPs have commended the Government’s efforts to boost reproductive health in the country by providing sh67.5b.

This was after the Government, through a World Bank loan, allocated sh40b out of sh67.5b to procure emergency obstetric care supplies and equipment, and family planning supplies such as oral contraceptives.

Addressing journalists at parliament on Monday, members of the Network for African Women ministers and parliamentarians Uganda chapter (NAWMP-U) said although the money may not be enough to meet all the required reproductive health supplies, the Government had tried to address some of the needs.

“The Government has committed itself through the loan. However, we need more finances to cover the whole country. The problem of reproductive health needs to be addressed urgently,” MP Jane Alisemera said.

According to the MPs, every year, about 6,000 Ugandan women die from pregnancy-related causes, while 297,000 women have induced abortions, most of them unsafe.

According to NAWMP-U chairperson Sarah Nyombi, 40% of the deaths and 85% of induced abortions could be prevented if women in need of modern contraceptive methods were able to access them.

Quoting health state minister, Richard Nduhura, the MPs said some of the money will be spent on antenatal care and ensuring skilled attendance at birth.

They urged the Government to ensure that the funds are utilised for the intended purpose. “In 2008, only 6.4% of the sh1.5b allocated to procurement of contraceptives was spent,” Nyombi said.

Revenue collections surge by 49%
Thursday, 21st October, 2010
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By Slyvia Juuko

THE Uganda Revenue Authority (URA) posted a 48.8% rise in collections in the first quarter of the financial year, bagging sh1,452.5b, the latest figures have shown.

Sarah Banage, the URA corporate assistant commissioner, said this was against a target of sh1,130.7b, representing a surplus of sh321.8b.

The surplus highlights the buoyancy of the economy with a rebound in economic activities in comparison to last year’s slower economic growth.

Banage attributed the improved performance to favourable performance of domestic and international trade taxes.

“Gross domestic collections amounted to sh919.5b against a target of sh619.2b, recording a surplus of sh300.3b,” she told reporters on Wednesday.

International trade gross revenue collections also grew to sh583.2b against a target of sh561.3b, representing a surplus of sh21.9b.

Banage noted that Uganda’s good performance was due to surpluses recorded on several tax heads that include corporation tax, pay as you earn (PAYE), tax on bank interest and withholding tax.

She said URA collected 30% in capital gains tax on the transaction of the sale of oil wells by Heritage Oil and Gas to Tullow Oil.

“The capital gains tax collected on this transaction amounted to sh273.6b.”

Figures show that corporation tax revenue performed at over 181%, with a growth of 167.4% compared to the same period last financial year.

“The increase in corporation tax revenue is mainly attributed to revenue spill-over of sh26b from June 2010 due to late clearances,” she explained.

Another factor was the growth in remittances by major sectors, like telecommunication, banking, manufacturing and government, improved PAYE collections, which grew by 19.2% compared to the same period last year.

The fluctuation of the exchange rate over the quarter, amounting to sh2,252.10 per US dollar above the projected average of sh2,143.3, boosted revenue collections. Customs revenue gain as a result of exchange rate fluctuations was estimated at close to sh20b.

Banage said leading exports during the first quarter of the year included cement clinkers, steel products, vehicles and machinery.

Exports to tKenya, the Democratic Republic of Congo and Burundi grew by over 31%, 21.7% and 3.4% respectively compared to the same period last financial year.

On the other hand, exports to Tanzania, Sudan and Rwanda declined by 27.69 percent, 23.71 percent and 6.01 percent respectively

However, fuel supply constraints from Kenya impacted on petroleum duty collections while local excise duty posted a shortfall of sh2.35b.

The assistant commissioner said next quarter’s target was sh1,261.056b.

Peter Muliisa, URA’s manager prosecution clarified that the balance of the amounts from the capital gains tax due on the transaction of the sale of oil wells by Heritage Oil and Gas to Tullow oil was still pending because it’s still under dispute.

“The amount of sh273.58b indicated is 30 percent in capital gains tax. Our Income tax act requires that if an assessment is given to a tax payer, and you don’t agree on the mode of assessment or whatever the case, they can object. But as they do that they must deposit 30 percent of the amount assessed,” he said.

He said URA issued an objection to the oil company sustaining assessment.

“The next stage is for the tax payer to file a petition. If they don’t file a petition within time frame then the assessment becomes collectable. The objection decision was issued seven days ago so they have about 45 days within which to file an application. However, if they don’t or if they go to court, then we will have the matter handled in court,” he said.

u.g boy

October 22nd, 2010, 12:15 PM

select garments
a large clothing chain in kampala one of the hew ugandan brands to leave kampala with a branch in mbarara.

branches
1.Mabirizi Complex
http://www.selectgarments.com/contact_us_files/klard.JPG

2.royal branch JBK Plaza
http://www.selectgarments.com/contact_us_files/royal.JPG

3.Corporate Branch,Garden City, 3rd Floor
http://www.selectgarments.com/contact_us_files/gc.JPG

4.Mbarara BranchSuper Arcade
http://www.selectgarments.com/contact_us_files/mbra.JPG

5.Main Branch Venus Plaza
http://www.selectgarments.com/contact_us_files/container.JPG[

6.Mutasa-Kafero Plaza
http://www.selectgarments.com/contact_us_files/mk.JPG

^^^^
a fairly new chain store i just found intrest in there buiness and posted it up.

u.g boy

October 23rd, 2010, 06:46 PM

fj9kFFLt15M

u.g boy

October 25th, 2010, 12:15 AM

Danish embassy starts carbon project
Sunday, 24th October, 2010
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By Cecilia Okoth and Taddeo Bwambale

THE Danish Embassy has signed a five-year agreement with the Uganda Carbon Bureau (UCB) to purchase carbon credits from various projects in Uganda.

Danish ambassador Nathalia Feinberg said the initiative was intended to offset carbon emissions from energy sources used by the embassy.

“This demonstrates our commitment to promote a clean environment,” she said at a signing ceremony held in Kampala on Thursday.

A carbon credit is a value assigned to each tonne of carbon emitted by an institution to offset its greenhouse gas emissions.

The embassy, which is the first to implement the measure, will review its carbon emissions resulting from vehicles, flights and light energy sources used by the staff.

Under the arrangement, farmers plant trees which capture and store carbon from the atmosphere. Institutions then pay tree growers an equivalent of the total amount of carbon that they emit annually to offset their emissions.

The beneficiaries include the Plan Vivi Project in Bushenyi district, Global Woods’ forestry plantation in Kikonda Central Forest Reserve in Hoima and Abalindwa Ebihangwa Tree Conservation Project in western Uganda.

According to UCB, induced climate change may increase temperatures by 1.5 degrees in the next 20 years and up to 4.3 degrees by 2080.

Uganda to host African Commonwealth Women MPs
Sunday, 24th October, 2010
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OVER 200 MPs from Commonwealth member countries in Africa are to meet in Kampala this week to discuss maternal health and women representation in leadership.

According to the chairperson of the MPs, Rebecca Kadaga, the conference will be held at the Commonwealth Speke Resort, Munyonyo, stating tomorrow.

“These issues affect every body. However, we are worried that although most countries agreed that women representation in parliament should be 30%, many have not yet reached there. We want to see more women in leadership positions,” Kadaga said while addressing journalists at Parliament yesterday.

She said the meeting will focus on key policy initiatives and legislation on equal sharing of responsibilities between women and men, including care-giving in cases of HIV/AIDS, equal participation in the decision making at all levels, and the gender perspectives of the financial crisis in Africa.

Arua, Kuluva hospitals get medical equipment
Sunday, 24th October, 2010
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By Richard Drasimaku

ARUA and Kuluva hospitals have received an assortment of medical equipment worth $200m from the Rotary Club of New Westminster, Canada.

They include electronically adjustable beds, wheelchairs, oxygen concentrators and walkers for the orthopedic department, electronic weighing scales, operating trolleys and warmers.

Mike Crean, the leader of the Canadian delegation, delivered the equipment to the officials of both hospitals at Heritage Park Hotel in Arua town on Wednesday.

Crean, who made his maiden visit to the district in 2001, said it was the warmth and hospitality accorded to them by the people that encouraged the Canadian team to organise the donation.

He said they initially faced a challenge in ensuring that they brought the most useful items to the hospitals. He explained that this was later resolved through discussions with the field officer.

He promised to equip the intensive care unit in Arua Hospital to full capacity by next year.

“Most equipment this year went to Mulago Hospital, next year might be Arua’s turn, especially the intensive care unit,” Crean said.

Dr. Godfrey Amandu, the depute medical superintendent of Kuluva Hospital, said the equipment would revitalise the hospital’s premature children’s unit.

Flanked by Bernard Odu of Arua Hospital, the team promised improved service delivery to patients following the new acquisition.

“The items will go a long way in reducing the constraints we have faced in diagnosing and treating patients. All of them will be used to assist the patients,” Odu said.

But the health officials noted that the hospitals lacked technicians to repair the donated equipment and the few specialists in Kampala were costly to hire.

They requested the Canadian Rotary Club to help them to train technicians in Arua to minimise the cost of maintaining the equipment.

100 youth to get Lira jobs
Sunday, 24th October, 2010
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OVER 100 jobless youth in Lira district are to benefit from a sh20m tree-planting project under Ded, a Germen development service programme.

Ded’s technical advisor in charge of water and environment Ralf Westhagemann said the youth would be recruited to plant 20,000 trees.

The three-year project will be implemented in three phases. Westhagemann said they would recruit an agricultural officer first, then get causal labours.

“We are going to employ 72 people, who will weed the trees every month and the rest will help us in the tree nursery beds,” he said. He added that the trees would be planted in the Mayor’s Garden to provide a good shade.

Honey-makers gear up for Zambian market
Sunday, 24th October, 2010
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http://www.newvision.co.ug/NP/1287935467coo.jpg
HONEY AMBASSADORS: Some of the honey producers showcase their products before flying off to represent Uganda at the Lusaka, Zambia second African Continental Apiculture Expo slated for October 26-29.

They will display honey, bee works, honey wine and equipment like bee suits and smokers. The delegation that forms a team of local honey producers, processors and marketers, will seek to promote the country as a leading investment destination in the honey sector, Bosco Okello, the ApiTrade Africa Co. Ltd chief, which organised the event, said.

He disclosed that up to 21 countries including Italy, Norway and Scotland will participate in the expo held every two years.

Uganda hosted the first edition of the expo in 2005. Okello said Uganda’s organic honey enjoys a comparative advantage over other nations.

Oil project gets another sh119b
Sunday, 24th October, 2010
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By Ibrahim Kasita
INTERNATIONAL Fund for Agricultural Development (IFAD) has approved a $52m (about sh119b) loan to finance the second phase of the Vegetable Oil Development Project.

The project is expected to increase domestic vegetable oil production, address rural poverty and improve the health of the population through increased vegetable oil intake.

The project, which focuses on oilseed development in Uganda’s eastern, northern and West Nile regions, targets over 136,000 households.

It will also facilitate oil palm production in Kalangala district. Deo Rwabita, the Ugandan ambassador to Italy, endorsed the deal with the IFAD president, Kanayo Nwanze.

“The loan will help Ugandans to double their per-capita consumption of oils and fats in their diet, while laying the basis for agriculturally-driven rural development,” Nwanze stated.

“It will aim to bring skills and knowledge to smallholder sunflower and soybean farmers so that they can learn to run their farms as businesses and supply crushing material to the processors.”

Parliament approved the loan three weeks ago. The fund comes at a time when Uganda is stepping up efforts to alleviate household poverty via increased agricultural productivity, which is the major economic activity in rural areas.

One of the steps was the first phase of the project, started 12 years ago. The project has turned around the fortunes of the Lake Victoria district of Kalangala by accelerating its economic and social landscape.

Peasant farmers have managed to educate their children, bought land, built houses, invested in animals and set-up shops as they increasingly access cheap loans for production.

The same farmers have created employment for labourers and established forest cover in formally grassland areas. About 60% of the land under oil palm was grassland.

u.g boy

October 25th, 2010, 12:27 PM

First section of Kabale-Kisoro road completed in Uganda

By Wolfgang H. Thome, eTN | Oct 24, 2010

UGANDA (eTN) - Last week saw the handover of the first section, approximately 50 kilometers long, of the road from Kabale to Kisoro from the contractors to the Ugandan government. The road, one of the most scenic in the country, will open up the tourism and farming areas around Kisoro to the rest of the country with much greater ease, as the old Murram road made travel by car difficult, to say the least.

The new tarmac road will now allow Kisoro residents to ship their produce to the markets in Kabale, Mbarara, and Kampala at reduced cost and greater speed, while tourist visitors, both local and from abroad, can drive to Kisoro and enjoy the often breathtaking scenery along the route, especially when seeing the distant volcanic mountains progressively coming nearer or when driving through the bamboo forests and alongside the rivers and wetlands, which still make up much of this part of the country.

The new road construction, after long and at times inexplicable delays, started in early 2008, but owing to the terrain and often adverse weather conditions, which caused repeated landslides and other damage to the new road bed, the handover of the new road was delayed until now. The remaining section of nearly the same length is due for completion and handover in late 2011 at which time the full rehabilitation and widening of the Kampala to Kabale highway should also be complete.

Travel by road, which at times could take 14 or more hours between the capital and Kisoro – located in the border triangle with Rwanda and Congo DR – will benefit from these developments, and it is expected to reduce the time on the road to between 8 to 10 hours. Time to pack the car and visit that beautiful part of Uganda once again soon!

Uganda bank sets $45m for housing
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Aggrey Nshekanabo

Kampala, Uganda - Housing Finance Bank (HFB) has launched two new mortgage products - Construction Mortgage and Commercial Mortgage financing.

According to Mr.Patrick Kabonero, the bank's Executive Director, the financing estimated to be over Ushs100billion (US$45m) will assist property developers in the country to put up commercial and residential properties for sale.

"Property developers of industrial, office and residential apartments, University hostels and hospitality parks will borrow a minimum of Ushs500m (US$227,000) while the maximum is infinite," Kabonero revealed at the launch of the facilities.

In Kampala recently. He said that the bank will advance property developers up to 70% of the entire projects cost. He however emphasized that the properties developed are for sale to end users.

Presently, according to Mr. Nicholas Okwir, the bank's Managing Director, Uganda has over 600,000 housing unit deficit. Therefore, financing property development to companies is meant to help address this acute shortage.

Okwir revealed that the facilities are financed in partnership with the country's savers scheme National Social Security Fund (NSSF), PTA Bank, ADB, EADB, European Industrial Development Bank and AFD, a French financing agency.

Recently, Housing Finance Bank issued Ushs 30billion (US$15m) bond that was oversubscribed.

Ugandan Minister of State for Urban Planning Urban Tibamanya said at the launch that the housing deficit currently experienced in the country is bound to increase further from 600,000 housing units due to unchecked population rise.

He expressed worry at the poor settlements continuing to spring up in urban centres if other partners do not come on board to scale up construction of affordable housing units in properly planned environments.

Energoprojekt Niskogradnja builds roads in Uganda

25. October 2010. | 12:13

One of the members of Energoprojekt construction system - Niskogradnja, has announced that it has concluded an agreement in Uganda with the local government directorate for roads on the rehabilitation of a local road 21 km long.

One of the members of Energoprojekt construction system - Niskogradnja, has announced that it has concluded an agreement in Uganda with the local government directorate for roads on the rehabilitation of a local road 21 km long.

The value of the job is 6 million dollars, while the deadline for the project implementation is 12 months from the signing of the agreement.

Niskogradnja is among larger members of Energoprojekt system: last year this company registered business revenues in amount of 5.65 billion dinars, while the net profit reached 92.1 million dinars.

In 2009, the whole Energoprojekt system reported the consolidated revenue of 21.6 billion dinars, while the net profit amounted to 1.07 billion dinars.

u.g boy

October 25th, 2010, 11:12 PM

Kampala city to get 300 free toilets
Monday, 25th October, 2010
http://www.newvision.co.ug/NP/1288035191ugfans.jpg
President Museveni, the NRM party flag-bearer, addressing a crowd at Kololo airstrip yesterday

By Henry Mukasa and Moses Mulondo

PRESIDENT Yoweri Museveni yesterday launched his re-election bid with a huge rally during which he outlined his achievements and said there was still work for him and the NRM to do for the country.

He said the country under his leadership is on the road to economic transformation.

Museveni was addressing jubilant supporters at Kololo Airstrip hours after being duly nominated as NRM’s presidential candidate in next year’s general elections.

He cited peace, security, economic recovery, disciplined army, free education for all, and democratisation as some of his key achievements.

Museveni said NRM’s achievements are not only recognised in Uganda, but across the world.

“NRM has liberated Uganda from dictators and has brought peace to the country. Our economy is self-reliant as we can work on development programmes without depending on foreign loans and grants.

“It is us who have liberated Uganda from those problems, who deserve to be entrusted with the leadership of the country,” he said amidst ululations from supporters.

Museveni dismissed his competitors in the 2011 presidential race asking him to relinquish power, saying they are underachievers with nothing to offer.

Referring to his achievements, stability and a robust economy with enough revenue to finance government programmes, Museveni wondered why his opponents were demanding that he relinquishes power.

“They say Museveni agende (should go). Why should he go and you remain? What have you achieved to qualify to replace him? Uganda had problems of murderers and dictators, why didn’t you solve them? The Museveni you tell to go led those who liberated Uganda from those problems,” he elaborated.

Museveni equated himself to an old broom, which knows all the corners and to a fighter, who has surmounted all the country’s problems.

The NRM leader assured the citizens that there is enough revenue to run government programmes. He cited the Kampala-Masaka road, Matugga-Ssemuto-Kapeeka road, and Busega-Mityana road, which are being constructed on internally generated funds.

Referring to the 1962 UPC alliance with Kabaka Yekka that resulted into the bloody 1966 crisis, Museveni cautioned voters against making wrong choices while voting.

“The Baganda say ensi egula mirambo (a nation is liberated through bloodshed). If that is the case, why do you gamble with politics? You elect Ken Lukyamuzi who talks about conserving butterflies. If he likes them so much, why doesn’t he rear them?” he wondered.

Museveni promised to construct free public toilets in all the divisions of Kampala as part of his new programmes in the next term if re-elected.

He said he would, in the next financial year, ensure 100 free public toilets are built in Kawempe division and 50 in each of the other Kampala divisions.

“It is unfortunate that the poor cannot access toilets because of charges ranging from sh200 to sh700. I want to stop this exploitation of the poor and introduce free toilets,” Museveni said.

He arrived at the rally at 2:30pm in his car which moved through the ululating crowds. Accompanied by his wife Janet, he waved at the supporters before taking his seat in the tent.

The rally was attended by a mass of supporters donned in yellow t-shirts, with Museveni’s portrait and inscriptions declaring their loyalty to NRM.

The airstrip was pasted with banners praising Museveni. Various drama groups and brass-bands moved around chanting NRM’s slogan of ‘no change’ and tajja’genda (he will not go).

Several supporters travelled from various parts of the country to attend the rally.

Among the guests was former FDC vice-chairman for the northern region Alex Onzima, who crossed to the NRM and former DP stalwart and Kampala mayor Nasser Sebaggala.

Onzima seconded Museveni’s nomination after NRM national vice-chairman Alhaji Moses Kigongo proposed Museveni’s name to the Electoral Commission at Namboole Stadium.

Several artistes, including veteran Kadongo Kamu singer Dan Mugula and local musician Eddie Kenzo of the stamina hit, entertained the crowd. Museveni joined them on the stage and belted his new rap song, “give you some rap?” which sent the fans into laughter.

Addressing the underprivileged, Museveni said he would ensure that he deals with the problem of high market dues so that vendors can remain with enough income to solve their problems.

He cited a levy of sh500 imposed on each bunch of matooke, which he said constitutes overcharging the ordinary vendors.

He said since Kampala mayor Nasser Sebaggala had joined him, the problems of Kampala would be solved with the help of the Kampala City Council.

The NRM secretary general, Amama Mbabazi, and his deputy, Dorothy Hyuha, were the MCs. Mbabazi thanked the supporters for turning up in big numbers.

musevenis promeses if he wins the election

Promises made

* Museveni promised to find jobs for the youth if re-elected.
* Halt the levying of rent fees at markets to boost vendors.
* Embark on a toilet construction project to improve sanitation in kampala

Incumbent President Museveni launched his bid for a fourth elective term at the Kololo independence grounds yesterday, re-committing to end corruption and create more jobs. At 2:30pm, the NRM leader arrived with his wife Janet, to a tumultuous welcome.

Enthusiasts lined Wampewo Avenue from the round-about all the way to the airstrip donning yellow t-shirts bearing ruling party insignia and a portrait of Mr Museveni. They chanted ‘No change’ slogans.
Top government officials, including ministers, civil servants, MPs and foreign dignitaries showed up for the President’s first re-election walk-about.

Maracha MP Alex Onzima, who seconded Mr Museveni for nomination, showed on which side his bread is buttered after the former opposition MP rallied the gathering to vote NRM. Mr Onzima took a dig at his former party, FDC, describing its leader Dr Kizza Besigye as a “liar” and “loser.”

“The reason why I am not supporting those people in Nakivubo (FDC rally venue) is that this man (Besigye) has lost twice and I cannot waste my time voting for him,” he said. “He promised a tsunami but it has not come.”

At 3:19p.m, Mr Museveni took to the podium. The NRM leader delivered his post nomination speech in Luganda, speaking at length about the achievements of his administration since he assumed power 24 years ago.

He said his government has brought an end to extrajudicial killings, restored democracy, guaranteed peace and security, built a professional army and improved the economic fortunes of Uganda.
[B]
Promises
“Uganda is free and peaceful. Why should people say Museveni should go?” he asked. “Now you see Uganda is settled and then you say Museveni should go?”

If re-elected, Mr Museveni said he would stamp out corruption, a scourge that has bedeviled his government with various reports observing that the country loses hundreds of billions to official graft every year. He said his next administration would build homes for teachers and health workers.

He said the government would find jobs for the masses of Uganda’s unemployed youth but did not say how many jobs would be created.
Mr Museveni also said the government would halt the levying of rent fees at markets to boost vendors and proposed that his administration would embark on a toilet construction project to improve sanitation in Kampala.

At that point, Mr Museveni invited city mayor Nasser Ssebaggala to the podium and the former DP strongman chanted NRM slogans. “NRM is going to construct toilets of its own,” Mr Museveni said.
“We are going to work with KCC to build you enough toilets, starting with 50 in each division.”

Mr Museveni also revealed that this month, he would order the release of Shs120 billion, money he admitted had been deliberately withheld, for agricultural subsidies under Naads. Mr Museveni used the adage, ‘an old broom knows all corners’ in seeking another term.
Museveni had the audience excited as he sang a rap song he has recorded in Runyankore.

u.g boy

October 25th, 2010, 11:15 PM

Kilembe Mines, Kinyara, Mandela ready for sale
http://www.monitor.co.ug/image/view/-/1040000/highRes/207537/-/maxw/600/-/6rf6xtz/-/bp002pix.jpg
An aerial view of Mandela Stadium. FILE PHOTO
By Martin Luther Oketch (email the author)

Posted Tuesday, October 26 2010 at 00:00

The government is in the final stages of releasing three public enterprises in the market for privatisation next year.
The move is geared towards improving the economic viability of these companies.

In interview with Business Power last week, the spokes person for privatisation Unit, Mr Jim Mugunga, said the enterprises which are to be released into the market include: Kilembe Mines Limited, Kinyara Sugar Works Limited and Mandela National Stadium Limited.
Mr Mugunga explained that so far one due diligence study has been conducted and completed and the second one, which will lead to the final privatisation process is about to be completed.

“These public enterprises are listed in the Public Enterprises Reform and Divestiture (PERD Act) to be privatised or divested and we are currently busy preparing them for the market,” he said.
The PERD ACT classifies public enterprises into five categories based on their economic viability.

According to the Act, Kilembe Mines Ltd (“KML”) is categorised as a Class 111 company where the government of Uganda, which owns 99.06 per cent of the company, is required to fully divest. The remaining shareholding of 0.04 per cent, is owned by the Estate of the late GDK Rukiidi III.

Kilembe Mines Limited started operations in 1956 producing copper at a copper mine in Kasese and a copper smelting plant in Jinja. The KML Company operated up to 1982 when it stopped due to depressed world copper prices. Since then the company has been operating on a care and maintenance basis.

Since the implementation of the policy in 1993 to-date, over 100 public enterprises have been divested and 31 companies have been liquidated and some more are still in line.

For the case of Kinyara Sugar Works Limited, Mr Mugunga said since the company was totally dilapidated, the current mangers were given time to turn around the company before it is released in the market for privatisation. “It is the reason why it has taken some time for it to come to the market,” he said.

The government will float shares to the public through the Initial Public Offer. For the case of Mandela National Stadium Limited, Mr Mugunga said the government has started redeveloping the enterprise to include a well functioning hotel, swimming pool and things to make the places commercially.

However, Mr Mugunga said there are still challenges such as obtaining the Land Title, which he said is missing.

u.g boy

October 25th, 2010, 11:30 PM

presidential nominations day
today was presidential nominations day the five candidates went into the eletoral commision offices to day to be deceided weather the can run for president this years ran more smoothly than anyother and huge crouds celebrated the party the supported in large parades across the city. each party a had a convoy route and was allocated a large venue to host their speech , m7 got kololo independence ground, norbert mao got namboole stadium,kizza besyge got nakivubo stadium . i dont tknow the other locations.

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u.g boy

October 26th, 2010, 11:30 PM

Mauritius to employ 30,000 Ugandans
Tuesday, 26th October, 2010
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By David Mugabe

MAURITIUS wants to recruit about 30,000 Ugandan graduates of information technology as it positions itself as an IT hub.

The Mauritius government recently contacted the faculty of computing at Makerere University over the deal. The faculty graduates about 900 IT students every years ago, the highest in the region.

Michael Niyitegeka, an official of the faculty, said Mauritius first contacted the faculty about two years, but the programme stalled over the global economic slowdown.

However, Mauritius recently revived interest in recruiting Ugandan IT graduates.

“We are waiting for clarification from Mauritius on the specific types of skills,” said Niyitegeka.

Mauritius is reportedly compiling more data from local technology firms on the specific IT skills required.

Niyitegeka said initially the programme was supposed to be handled by Makerere, but the university is now co-opting the Government so that the state can own the process and manage the recruitment process. Makerere is seeking to involve relevant government authorities like the National Information Technology Authority that have promised to follow up on the offer.

Industry sources expect the process to start early next year. Experts advise that the country’s Ministry of Labour has to cross-check the work terms and conditions to ensure that Ugandans are not exploited.

“They (Mauritius) have the infrastructure and the facilities but lack the human resource. Uganda has the advantage of numbers compared to any country in the region,” said Niyitegeka from the corporate affairs department.

The faculty has emerged as a centre of excellence in the region, with a global appeal. Niyitegeka said the skills needed are largely in database management systems, application development and the applicants must know English and French.

Uganda now has to move first to grab the opportunity in the globally lucrative sector of business process outsourcing, he added.

This involves call centres, data entry, software development, e-learning and transaction processing.

The salary is expected to be about $500 depending on skills, experience and competence. In Uganda, graduate trainees are paid about $100 monthly.

“There is no incentive for training here, companies just look at hiring to make profits,” observed Niyitegeka.

“Global demand for IT graduates is still huge but most of our students and graduates do not even have websites,” said Niyitegeka, which he attributed to wrong mindsets.

If the programme kicks off, it will provide a huge opportunity for the country that is facing a serious unemployment backlog. The Government is considering lowering the retirement age to allow more youth enter the civil service.

With a population of about 1.5 million people, Mauritius is bilingual and citizens are equally fluent in English and French. Creole and French are the main languages and several oriental languages are also spoken.

Mauritius is located about 2000km to the south eastern coast of Africa.

The idea of working abroad is not new to Ugandans, many of whom have already been going to Iraq and Afghanistan for security-related jobs.

Rwanda has also invited Ugandan teachers of English.

Ugandans now richer, report says
Tuesday, 26th October, 2010
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By Raymond Baguma

THE number of Ugandans living in absolute poverty has reduced from 8.4 million four years ago to 7.1 million today, according to the Uganda National Household Survey (UNHS).

The United Nations defines absolute poverty as a situation under which a person lives on less than $1 a day.

The report was released yesterday by Uganda Bureau of Statistics (UBOS) officials at a workshop at Statistics House.

The survey is conducted every two to three years by UBOS to measure Uganda’s progress towards achieving the Millennium Development Goals (MDGs).

The MDGs focus on reduction of absolute poverty and hunger, improvement of maternal health, reduction of infant mortality, universal primary education, access to safe water, reduction of HIV/AIDS, eradication of malaria, environmental sustainability and creation of a global partnership for development.

The survey, conducted between May last year and April this year, covered 80 districts and compiled information on areas such as education, health, expenditure, welfare in homes, housing conditions, situation of vulnerable groups, family incomes, access to loans and credit.

Poverty reduction by region
Despite the significant reduction in poverty, northern Uganda still has the highest number of poor people at 46.2%, which is higher than the national average.

However, the poverty levels have declined from 60.7% in the 2005/2006 survey.

The report attributes poverty reduction in the north to the return of peace, which has enabled people to engage in agriculture, a strong growth in consumption and expenditure, a bumper harvest of maize as well as regional trade with South Sudan.

Eastern Uganda ranked second, with 24.2% of the people living in absolute poverty. However, this is a marked decline from 35.9% in 2005/2006.

Central Uganda has the lowest poverty levels at 9.7%, which declined from 16.4%.

In western Uganda, poverty levels stand at 18.2%, slightly down from 20.5% in 2005/2006.

However, in the western rural and urban areas of central and eastern region, the increase was not substantial enough to move people significantly above the poverty line.

Demographics
Uganda’s estimated population is 30.7 million, with more than half the population (50.8%) aged below 15 years. The working age of 15-64 years makes up 46.1% of the population.

The elderly people, aged 65 years and above, make up 3.1% of the total population of Uganda. Uganda’s dependency ratio is 117.

There are 6.2 million households, with each having an average of five people.

Also, most of the young Ugandans (52.5%) live in rural areas. On the other hand, the biggest percentage (57%) of Ugandans who are of working age, live in urban areas.

Health
Generally, there have been slight changes in prevalence of diseases since the 2005/06 household survey.

The major types of illnesses affecting Ugandans are malaria/ fever, respiratory tract infections, diarrhoea and skin infections.

However, the prevalence of malaria decreased from 56% to 52% since the last survey in 2005/09.

Malaria, according to the survey, is the most prevalent illness reported by 52% of Ugandans who fell sick during 30 days prior to the survey interviews.

Also, most people who fell sick sought medical attention from private clinics, while 41% of the population had slept under mosquito nets the day before the survey.

The highest incidences of malaria occurred in eastern Uganda, followed by central and western regions. The north as well as Kampala had low incidents of malaria. However, the north had the highest incidents of diarrhoea, while Kampala had the highest incidence of respiratory tract infections. Also, the average distance to a government health unit was 4.6km. About 75% of the sick people have to walk to the government health unit.

Education
The literacy rate is 73%, an increase from 69% in 2005/06.

The males have a higher literacy rate than females.

Both primary and secondary school enrolment levels have increased over the last 5 years. The main reason children aged 6-12 do not attend school is because they are considered too young by parents and guardians.

The survey shows that Ugandan children walk an average distance of 2km in order to access a government primary school. Walking was reported to be the most common mode of transport to access education facilities.

Housing and household conditions
Most dwelling units are detached houses and owner-occupied iron-roofed houses.

Only 12% of households use electricity for lighting.

About 74% of households have access to water from improved sources compared to 68% in 2005/06.

The most common source of energy for lighting in Ugandan households remains the “tadooba” (wick lamp). Also, wood fuel is the most common source of energy for cooking in Ugandan households.

On sanitation, the survey shows that 9% of households did not use any toilet facility.

Also, one in every 10 households lacks a toilet facility.

The average distance to the main source of drinking water is about a kilometre. The mean waiting time for water is 27 minutes.

Welfare levels
The ownership of clothes was almost the same between the 2005/06 household survey and 2009/10 household survey.

The number of Ugandans who possess at least a pair of shoes increased from 50% in 2005/06 survey to 58% in the 2009/10 survey.

Also, 9% of the households had a meal a day. About 71% of the communities had access to telephone services.

Uganda gets sh58b for roads
Tuesday, 26th October, 2010
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By Josephine Maseruka

THE European Commission and the British Department for International Development (DFID) have injected £17.75m (about sh58b) to reduce the cost of building and maintaining roads in Uganda.

Robert Rudy, the DFID investment advisor, said the five-year project will reduce by 10% the cost of road construction. The cost, which currently stands at $300,000 per kilometre of tamarcked road, is the highest in the region.

“Over 10,000 people will be trained in construction methods. The project will also increase the proportion of the national road network in good or very good condition from 25% to 50%,” Rudy said.

Eng. Peter Ssebanakitta, the executive director of the Uganda National Road Authority (UNRA), said out of the 20,000km of national roads, only 3,000km are paved, 7,800km are unpaved gravel and 10,000km are unpaved earth.

The revelation was made on Monday at the sixth Joint Transport Sector Review workshop at the Speke Resort Munyonyo.

Over 250 experts in the road sector are attending the three-day annual conference.

“Poor people’s economic opportunities and access to markets, and service delivery agencies are substantially hindered by the state of the road network,” Rudy lamented.

DFID also prepared a project called Creating Opportunities for Sustainable Spending in Roads (CrossRoads).

It comprises a 3 million euro grant (about sh7.5b) from the European Commission and £15m grant (about sh51b) from DFID.

The project will be implemented in four phases, which include £4.8m budgeted for the works ministry and UNRA to complete their reform process.

The secretariat will be set up next month and will take six months to be fully operational.

Sh1b needed for Gulu bridges
Tuesday, 26th October, 2010
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By Chris Ocowun

GULU district local government is soliciting for about sh1b from the central Government and development partners to rebuild six bridges and community roads that have been destroyed by the heavy rains in the return villages.

The district authorities are also soliciting for sh20m to rehabilitate 15 boreholes in the return villages and schools. The water sector reported that they would get spare parts from the estimated 22 abandoned boreholes in the former IDP camps and use them to repair the spoilt boreholes in the return villages.

“With the heavy rains, most protected springs in the return villages have been contaminated. We need to give Aqua Safe tablets to our people to purify the water so that we don’t experience an outbreak of cholera and other diseases,” said Alex Otim, a district official.

Otim who is the district secretary for works and technical services said that three bridges on community roads in Odek Sub County have been washed by the heavy rains, cutting off many villages.

“On Odek River, ten culverts that had been installed by an NGO have been washed away by the rains. Now vehicles cannot pass,” he said. He added that the other bridges that have been destroyed by the heavy rains include; Lupwor along Odek-Jingkomi road, Dawar on Acet-Orapwoyo road.

Otim named the other bridges that need repair as Oitino in Bungatira, Pagik in Paicho and Akonyibedo. He stated that about 30km of the community roads in the district have greatly been destroyed by the rains and need major repair.

“Such roads include Lukome-Gweng-Diya in Awach and Lakwaya-Minja in Odek sub county. We need about sh320m to repair these two roads and others. We have got the contractors already and soon work will start,” he noted.

He added that another sh16m is needed to fill the potholes and re-shape Laroo-Pageya road that leads of Gulu Core PTC. This road has got deep potholes that have turned into gullies.

The LC3 chairman of Odek sub county, Mathew Olobo said that at Palaro and Lamola parishes, people’s gardens have been flooded with water. “Six latrines at Palaro parish have also collapsed due to heavy rains. We advised people not to use latrines,” he said.

Olobo appealed for help to the people whose gardens have been destroyed by the heavy rains.

River Nile villages to get clean water
Tuesday, 26th October, 2010
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http://www.newvision.co.ug/NP/1288116563yyyyyy.jpg
Kuster-Menager being shown around the Bujagali site by the site manager, Bill Groth

By Frank Mugabi

BUJAGALI Energy Limited (BEL), the firm overseeing the construction of the Bujagali hydro-electric power dam in Jinja district, has partnered with the National Water and Sewerage Corporation to extend clean tap water to residents in the area.

BEL’s social and environment team leader, Dr. Emmanuel Beraho, said the initiative that will cost sh2.2b, will cover nine villages on the eastern and western banks of the Nile.

He disclosed that the laying of the water pipes had started and would be completed soon.

“This project has excited the residents because there is a big problem of access to clean water, which causes health and hygiene issues such as contracting waterborne diseases,” Beraho said.

He was addressing the new French ambassador to Uganda, Aline Kuster-Menager, who visited the construction site on Friday.

The waterline project is among the community benefit projects, which the French government is funding through the French Development Agency (FDA) as part of the Bujagali hydro-electric power project.

Others are the afforestation programme and the rural electrification project.

Beraho said apart from easing the burden on women and children who usually have to search for water, the project will make water affordable to the community.

Currently, a jerrycan of water goes for sh200, but when the project is completed, NWSC will offer the same for as low as sh20.

The ambassador and the new regional AFD director, Yves Terracol, inspected the afforestation programme at Namirembe village in Kayunga district where they met members of the Kayunga Ecosystem Tree Planting and Maintenance Association.

Beraho said BEL had planted trees on over 444 hectares on the east and west banks of the river to curb soil erosion.

He disclosed that the community had been given over 90,000 seedlings of indigenous timber and fruit trees, which had been planted in their gardens.

Kuster-Menager commended the social and environmental programmes on clean water, afforestation and the upcoming rural electrification project.

She said the projects would improve the welfare of the affected communities as well as address environmental concerns.
She pledged her government’s commitment to compete the power project.

The 250MW Bujagali Hydropower project is in its third year of construction and the first unit generation is expected in the third quarter of 2011.

Kalangala gets sh102b projects
Tuesday, 26th October, 2010
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By Samuel Balagadde

Kalangala Infrastructure Services (KIS) has started $45m (about sh102.6b) development projects in Ssesse Islands. The area is made up of 84 islands.

The firm will construct and operate two ferries, build a 1.6-megawatt solar plant, upgrade the 66km main island roads and develop a water supply system in Kalangala, according to John Opiro, the managing director.

He explained that the project would be undertaken under a public-private partnership between the Government, KIS and the people of Kalangala. Opira said the two ferries would be ready by June 2011.

“The ferries are currently under construction in Mwanza, Tanzania and the ferry crew are also being trained at Dar es Salaam Maritime Institute to ensure that they acquire the necessary skills to man the ferries.”

There are few ferries linking Kalangala to the mainland. The Government, Opira said, would decide whether to subsidise the ferry fare for the people of Kalangala under the agreement for the project.

“The Government, through the works and transport ministry, will decide on whether or not the ferry services will be free of charge.”

MV Kalangala, which plies the Bukakata (Entebbe)-Kalangala route was grounded months back and is presently undergoing repairs.

alam Group eyes Jinja municipal cemetery
Tuesday, 26th October, 2010
http://www.newvision.co.ug/NP/1288100428Untitled-1.jpg
Attractive: Part of the cemetery that the Alam Group wants to acquire

By Vision Reporters

Jinja Municipal Council plans to sell the town cemetery to the Alam Group to expand a new sugar factory. The Masese cemetery at Mailo Mbili on Jinja-Ignga road, borders the group’s estate.

It has hosted graves of soldiers since the 70s. Matthew Mukwaya, the Jinja municipality speaker, said the council recommended in 2008, in its 10-year structural plan, to transfer the cemetery and turn the area into an industrial zone.

The move has, however, attracted opposition from some councillors. The Jinja town clerk, Francis Barabanawe, said they were still consulting with stakeholders, like the defence ministry over the issue. In an August 26 letter to the town clerk, the Alam Group managing director, Abid Alam, said they already had 50 acres of land, but needed more land to expand the project.

Alam said the sugar mill project had already been licensed by the Uganda Investment Authority. The mill would create 800 jobs and offer market to sugar cane out-growers.

‘Trained guides will spur tourism sector’
Tuesday, 26th October, 2010
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Paul Tentena

THE tourism sector should train safari and bird guides to compete favourably in the East African common market, Achilles Byaruhanga, the Nature Uganda managing director, has said.

Byaruhanga said without well trained guides, Uganda would not make a mark in the regional tourism industry. He was speaking during the launch of the “Big Birding Day Festival” at the Uganda Museum recently. The festival was intended to create awareness about Uganda as one of the most prime tourism destinations for birding in the world, and promotion of domestic tourism.

Byaruhanga observed that since bird watchers spend longer periods of time in Uganda and spend more money than gorilla trackers, birding should be supported and promoted.

Uganda is endowed with over 1,000 bird species, representing over 10% of the global bird diversity. In Africa, Uganda is a proud home to 72% of the birds found in East Africa.

Apart from the rare birds such as the shoebill, there are many other forest, papyrus swamp and water species to see here, and birding has the potential to take over as the main tourist attractions, Byaruhanga explained.

Bank branches hit 381 mark
Tuesday, 26th October, 2010
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By Vision Reporter

UGANDA has a combined 381 bank branches spread across the country up from a paltry 167 branches 10 years ago.

The number of Automated Teller Machines (ATMs) has also more than doubled from 238 in 2001 to 589, according to Tumusiime Mutebile, the Central Bank governor.

Mutebile attributed this to the growing confidence in the sector and prudential regulation despite the global slowdown in economic growth and stiff local competition.

“As of September 30, 2010, the number of bank branches and ATMs stood at 381 and 589 respectively.

“This is in sharp contrast with the position of 167 branches and 238 ATMs by June 30, 2001,” said Mutebile at the launch of Barclays Bank’s multibillion and luxurious Premier Life Centre at Barclays House in Kampala.

The governor said the confidence had been exhibited in the growing demand for new branches and the entry of eight new players since 2007.

“Once again, I want to assure the public that Bank of Uganda will continue to foster financial sector soundness and stability through prudential regulation and supervision,” he added.

Mutebile hailed Barclays for the investment, which he described as a “home away from home and an office away from office.”

Charles Ongwae, the Barclays managing director, explained that the centre was a continuous improvement to the bank’s Prestige Proposition, which was introduced in Uganda in 2001, but renamed Premier Life late last year.

“Premier Life banking can best be described as a full range of exclusive benefits for you and your money.

“This modern branch is an icing on the cake,” said Ongwae.

Anthony Jenkins, the global retail banking chief executive, said the centre had been designed to “meet the needs of customers who prefer a more exclusive service with a unique experience that meets all their banking needs in a special way.”

u.g boy

October 27th, 2010, 05:33 PM

UPDATE: Global Oil Cos Interested In Building Uganda's 200,000 Bpd Refinery

By Rakesh Sharma and Eric Yep

Of DOW JONES NEWSWIRES

NEW DELHI (Dow Jones)--Oil majors from India, China and Europe have expressed their interest in building Uganda's first refinery, expected to have a capacity of 200,000 barrels a day, Uganda's minister of state for energy said Wednesday.

The new refinery will be a boost for the energy-starved nation in east Africa, which currently meets its oil product requirements through imports from the Mombasa oil refinery in Kenya.

London-listed Essar Energy PLC (ESSR.LN), China's CNOOC Ltd. (CEO), France's Total S.A. (TOT) as well as other European oil companies have shown interest in the proposed project, Simon D'Ujanga told reporters on the sidelines of an industry conference.

"It will be Uganda's first refinery. It will be built with a public-private partnership," the minister said.

D'Ujanga said the refinery will help Uganda cut its petroleum imports and also help feed neighboring countries such as Kenya, Rwanda and Congo.

Uganda's primary processing industries that include coffee, cocoa and cotton rely on diesel-fired thermal power plants for a bulk of their electricity generation, as water levels at its hydroelectric plants have fallen.

Fuel supply from Kenya's Mombasa refinery has been disrupted because of insufficient production levels and congestion at the Mombasa port, which is the region's main import-export hub.

Uganda is now looking at setting up a refinery. The government is likely to invite bids for the refinery early next year and subsequently award the contract later in the year, D'Ujanga said.

The presidential spokesman of Uganda said in September that the country held talks with Kenya and India's Essar Group, which operates the Mombasa refinery, to form a joint venture to build a refinery in Uganda to use the country's oil reserves.

Oil exploration companies have discovered around 2 billion barrels of oil in Uganda's Lake Albert basin and Uganda plans to become an oil producer in the next few years.

While Chinese oil companies like CNOOC already have a foothold in east Africa's energy sector, Total and Italy's Eni Spa (E) have previously expressed interest in investing in Uganda's oil market. India's Essar Group has also made public its intentions to invest in the African continent.

u.g boy

October 27th, 2010, 11:44 PM

5,000 wanted for top teaching jobs
Wednesday, 27th October, 2010
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By Conan Businge and Patrick Opio

THE education ministry will this financial year promote 4,000 Grade III primary teachers to senior education assistants.

Another 1,000 Grade V teachers (in-service assistant education officers) on the government payroll will be promoted to education officers.

Ministry sources said about sh1b has been made available for the salaries of the promoted primary teachers. The Grade III teachers earn about sh250,000, mainly in the U7 salary scale. Those promoted will move a scale higher to U6 and their pay will rise to about sh300,000 per month.

The promotions are intended to improve the welfare of the teachers and quality of education. The project was launched in 2008 and is expected to address teachers’ appointments, promotions, training and job specifications.

In primary schools, senior education assistants are expected to supplement the management of the schools alongside the head teachers. They must have a minimum of Grade III teaching certificate or equivalent from a recognised institution.

Accordingly, the education service commission has invited applications from qualified teachers from almost all districts in the country. Applicants for the senior education assistants posts must be registered and should have a minimum of six years experience.

Teachers who have also attended at least one certified workshop and two courses relevant to their profession stand a better chance, according to the ministry.

Interested teachers can pick free application forms from the commission’s head office in Kampala, the district service commissions or the municipal council offices. The districts of Bushenyi, Iganga, Masaka and Mukono will promote the highest number of primary teachers, each with more than 100 slots.

The deadline for primary teachers’ application is November 17, 2010. Only teachers registered with the education ministry, according to Mbabazi, are expected to apply for promotion.

He said secretaries of district service commissions will receive the applications from primary teachers; ahead of interviews next month.

Mbabazi encouraged female and disabled teachers to apply. Mbabazi added that more secondary teachers will be promoted and will be paid a salary of about sh6.7m per annum.

To apply, one must be a registered teacher, have a BA with education, or in arts or science, with a diploma in education.

Secondary school teachers should apply to the secretary of the education service commission in Kampala not later than November 12, 2010.

Mbabazi added that teachers of mathematics, biology, geography, Islamic religious education, technical drawing, art, physics and economics should apply. Other subjects to be considered will include history, Kiswahili, home economics, music, chemistry, English language, literature in English, Christian religious education, agriculture and business education. But an applicant must state two teaching subjects and specify the major one.

Last year, the commission appointed 84 head teachers, 180 deputies and 2,607 secondary school teachers.

Tullow to pay $400m in oil taxes-Govt
Wednesday, 27th October, 2010
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By Anne Mugisa
and Agencies

TULLOW Oil has agreed to pay $400m in capital gain taxes to the Government for purchase of Heritage Oil’s stake, energy minister Simon D’Ujang has said.

The taxes had been a bone of contention between the Government and Heritage Oil which had refused to pay it. The Government was demanding over $404m in taxes emanating from Heritage’s sale of its huge oil assets to Tullow Oil.

Heritage had refused to pay the taxes and instead wanted the dispute to go for arbitration in Britain. It had said the decision was based on “comprehensive advice from leading tax experts in Uganda, the UK and North America that the disposal of the oil fields is not taxable in Uganda.”

However, the Government refused the arbitration and insisted that the Ugandan laws were very clear on taxation.

The Government also refused the arbitration and asked Heritage to deposit $121.5m with Uganda Revenue Authority if it wanted the tax dispute resolved in London. The Government also wanted Heritage to provide a bank guarantee for the balance before the dispute.

What followed was an impasse that stalled the transactions between Tullow and the Chinese company CNOOC. In the course of the dispute, Tullow’s licence for the disputed Kingfisher oil field expired and the Government repossessed the oil field.

Heritage sold the oil fields to Tullow Oil at $1.5b. Tullow paid the money without the tax deductions, which angered the Government that responded by suspending all Tullow’s operations in the disputed oil fields. This also put to hold Tullow’s sale of part of its interests to the Chinese company and oil giant Total.

“We discussed it and it is resolved. Tullow is the one which is going to pay the taxes,” D’Ujanga, who is on a visit to India, told journalists there.

The resolution is expected to allow Tullow to renew an oil licence and complete the planned sale of some of its assets to Total and CNOOC

In a separate interview, D’Ujanga said Uganda may launch its next exploration licensing in early 2011. “We are waiting for two laws,” he said.

Uganda reaping big from the lucrative regional market
Wednesday, 27th October, 2010
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By David Mugabe

THE European Union and the East Africa Community are locked in a standoff on whether to sign the Economic Partnership Agreements (EPAs) by mid November.

But for Uganda, statistics indicate that the regional markets currently constitute a robust base for its exports revenue compared to the EU market that is continuously shrinking.

The Economic Partnership Agreements are a scheme to create a free trade area (FTA) between the European Union and the group of African, Caribbean and Pacific (ACP) countries.

According to data from the Uganda Bureau of Statistics (UBOS), Uganda’s aggregate goods and service exports (excluding informal cross-border trade) totalled $3.6b in 2009 compared with $3.4b in 2008.

When informal cross-border estimates by UBOS for 2009 are included, total exports for 2009 reached $4.664b from $4.533b in 2008, a growth of 3%.

Uganda’s top four market destinations by earnings contributions were Sudan ($184m), Kenya ($172m), Rwanda ($135m) and D.R. Congo ($134m).

Combined markets in the Great Lakes region, therefore, constituted 46% of Uganda’s total formal merchandise export earnings in 2009. Even the UK, which has strong historical ties with Uganda, is 10th on the list of Uganda’s export destinations.

“The fact is that the regional markets now constitute the top four major export destinations, an inspiration that influences our choice of the theme this year-“Regional trade; Bigger is better for trade”, said Florence Kata, executive director of UEPB.

Uganda’s exports to the region are a mix of low value, large volume products like coffee, maize, beans, tea, tobacco and fairly high value resources like iron and steel products, building materials and household items.

Arguments have been made about the European Union being more worried about Brazil, China and India and not Uganda or Africa for that matter in pushing for the EPAs. But trade experts say the three emerging powers did not reach their current levels by completely opening up their internal markets to imports from the European Union.

“It is the previous suspect one sided relationship the west has held with Uganda and Africa that creates this suspicion and calls for more scrutiny of the EPAs,” said a trade specialist.

Also lessons learned from the currently receding global economic crisis lends credence to the arguments about over reliance on western markets as opposed to optimising exploitation of trade benefits ushered in by regional integration.

Yet EPAs would spark reforms and make exports products more competitive by presenting global best practises in international trade although experts again argue several strings remain attached.

“It will trigger reform in other trade related areas like investment, competition policy, and trade in services that are very key for the success in the trade in goods.

Currently, inefficiencies in these areas are undermining the performance of Uganda in the trade,” said Harvey Rouse, head of the political and trade section of the EU delegation to Uganda in a statement.

The Minister of Trade Kahinda Otafire earlier this month said the promise of better livelihoods for Ugandans can only be found in larger and wider markets

There are 2,015 registered exporting small and medium sized enterprises out of more than two million registered businesses in Uganda.

But clearing agencies handle more than 90% of import business and a paltry 10% in forwarding of exports.

President Museveni said boosting the regional markets will entail setting bigger goals for the country.

“We should have more serious targets, we cannot have a country talking about $3.6b, are you a company?” asked the President

Experts also say firms involved in exports need to set higher goals so they can become big regional and global players.

Partnership like the one between UEPB and Irish Aid’s TraidLinks which involve handholding companies and taking them on business match-making missions in the regional markets is another initiative.

The EAC trade ministers met in Nairobi in October 2007 and re-affirmed that EAC as an economic bloc with binding commitments will be required to sign an Economic Partnership Agreement (EPA) with European Union (EU) as a Customs Union.

$26m to rehabilitate business institutions
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By Isaac Khisa (email the author)

Posted Thursday, October 28 2010 at 00:00
Kampala

Parliament is expected to approve a $26.8 million loan from the Export-Import Bank of South Korea for the rehabilitation of five business and technical institutions in Uganda.

The loan is a complementary co-financing for the Post Primary Education and Training Expansion and Improvement of African Development Bank Education IV project. Speaking to Daily Monitor last week, Dr Brian Asiimwe the chairperson Social Services Committee said the loan will benefit five institutions; including St Peters Mubende, Kiryandongo, Nyakatare and Aura Business and Vocational Technical Institutes.

It will be used in the construction and renovation of educational facilities and purchase of necessary equipment among others. Experts dispatch and oversees training, review and improvement of the curriculum and develop job sheets and supply textbooks and provision of consultancy services. The funds will also be used to dispatch post management experts for 24 months after the project completion.

“While the demand for post primary education has increased, only 10 per cent of them are currently given an opportunity of post primary education due to inadequate and low quality educational facilities,” Dr Asiimwe said.

u.g boy

October 28th, 2010, 11:48 PM

Prime Minister’s office bosses grilled over sh18b for IDPs
Thursday, 28th October, 2010
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By Mary Karugaba

OFFICIALS from the Office of the Prime Minister have been queried over the accountability for sh18.6b for internally displaced people (IDPs).

The money was allocated to the ministry in 2007 to purchase farm equipment and inputs for 632,880 households in 10 districts of northern and north- eastern Uganda.

The districts were Gulu, Lira, Kitgum Pader, Adjumani, Amuria, Apac, Soroti, Kaberamaido, and Katakwi. The money was also to purchase ox-ploughs.

In a report to Parliament for the year 2008, the Auditor General said inspection of Gulu district stores showed that 40,835kg of seeds worth sh97.6m were not distributed because they were of poor quality.

The report also added that out of the 904 hoes found in the stores, 189 pieces were not of the recommended type.

The officials, led by the permanent secretary Pius Bigirimana, were on Tuesday meeting MPs on the public accounts committee.

When Bigirimana was asked how the money was spent, he bounced the ball to the technical officials who were in charge of the project at the time.

The committee agreed to summon the then permanent secretary in the Office of the Prime Minister, Martin Odwedo, the head of procurement, members of the evaluation and contracts committee and the project manager.

The auditors also said sh1.7b meant to purchase ox-ploughs was diverted.

Dorcas Okalany, the ministry’s former undersecretary, said the change from ox-ploughs to hoes was done with the approval of Prime Minister Apolo Nsibambi.

Mombasa-Kampala rail bids extended
Thursday, 28th October, 2010
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NEW Rail: A Rift Valley Railways train wagon
KENYA Railways has extended a bidding deadline for work on a new railway between the port city of Mombasa and Uganda’s capital Kampala. Firms that had already placed bids must resubmit them, it added.

Revitalisation of the rail network between Kenya and Uganda is viewed as critical to expanding intra-regional trade. More than 90% of the cargo arriving in Mombasa that is destined for Uganda, south Sudan, Rwanda and Burundi is transported by road.

Kenya Railways said bids for consultancy services for design and environmental and social assessment for the section ending at the Kenyan border had been stopped after one party petitioned the Public Procurement Administrative Review Board. No further details were given.

“The procuring entity has decided to extend the process up to December 2, 2010 by which time it is expected that the PPARB would have given directions on the matter,” acting procurement manager, David Bosire, said in a statement.

Kenya Railways said earlier this year that its aim was for the standard gauge railway to be operational within three years and to carry 10 times as much freight.

The latest suspension happened barely three weeks after Kenya Railways invited fresh bids for work on the new line.

The corporation had called for the new bids on October 8 and the closure date had been set for October 27.

Kenya Railways cancelled a first bid when expressions of interest came in too high for its budget. It re-advertised but that bid was also cancelled by government procurement authorities when a losing bidder won an appeal.

Kawempe-Kafu road for repair
Thursday, 28th October, 2010
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By samuel balagadde

THE repair work for the 166km Kawempe-Luweeo-Kafu road will start next month.

Dan Alinange, the Uganda National Roads Authority spokesperson, said the road is a crucial part of the corridor connecting Kampala to the north and north-western Uganda, Southern Sudan and the eastern Democratic Republic Congo.

The project will cost sh80m, Alinange said.
He said the rehabilitation would make it safer.

The work, to be undertaken by Energo Projekt, will involve resealing of potholes and expansion of shoulders.

Business improving, says BOU
Thursday, 28th October, 2010
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By Sylvia Juuko

PRIVATE sector credit and currency in circulation have risen in the past few months, indicating that economic activity has picked up, the Central Bank has said.

The slow pace of global recovery still poses a risk to the country’s outlook, the bank warned.

Economic activity indicators include growth in aggregate demand and developments in the capital markets. Aggregate demand comprises consumer expenditure, investment, government expenditure and net exports.

Dr. Adam Mugume, the Central Bank director for research, said while data on each of those aggregates, especially consumer expenditure, was not available, the bank uses indicators like real currency that is held by individuals.

“Growth in real currency was 15% in August compared to 10% in July, showing that the volume of transaction in the economy has picked up,” he said, explaining that growth is only measured according to the number of transactions carried out.

Data released by the Bank of Uganda shows that private sector credit grew by 28.3% in August 2010 compared to 26% in July 2010.

“It’s a reflection that economic activity is partly strengthening.”

He noted that the distribution of credit has, for the first time in recent years, been dominated by trade and commerce and accounted for 20%. This was slightly higher than personal loans at 19.7%, while the building and construction sector got 18.4% of the credit.

The manufacturing sector took 13.6%, while credit for other sectors, including agriculture, mining, transport and electricity stood at 28%.

The Central Bank’s inflation outlook remains benign, with the 5% target within reach this fiscal year despite indications that monthly inflation was rising. However, lending rates remained high with the weighted average edging up slightly to 20.3% in August from 19.6% in July.

The manufacturing sector attracted the lowest interest rate, while land purchase attracted the highest rate.

“The high interest rate on land acquisition, at 28%, reflects the risk attached to land. If you are not sure whether your land title is safe, commercial banks upgrade the risk. This is in comparison to corporate clients that attract the lowest interest rate of 12%,” Mugume noted.

Another indicator of an increase in economic activity was a rise in non-oil imports, which are consumables like machinery.

Latest figures also show that trading at the bourse increased in September relative to August, with turnover rising by 47% to sh1.7 trillion, from sh1.2 trillion.

“Overall we are confident that economic activity has grown and the forecast for economic growth this fiscal year is in the range of 6-7%,” Mugume said.

The rise in rates was partly attributed to Central bank’s issuance of government securities to mop up excess liquidity. In September alone, the bank issued a new scheduled 2-year bond and an unscheduled 3-year bond. It also issued two scheduled treasury bills worth sh95b and an unscheduled treasury bills worth sh65b.

“Once we issue Treasury Bills and
bonds as a reflection of excess liquidity, it has to spillover in the lending interest rate. This increase is partly due to cost of funds in terms of securities so there is some bit of crowd out effect when we sterilize liquidity that spill over in private sector credit.”

Government has stepped up liquidity injections this fiscal year, with most of it recurrent expenditure is and not development expenditure which in turn prompts the Central bank to issue securities. Its expenditure amounted to sh456b in September compared to sh580b in August.

Government’s expansionary fiscal stance bodes well with efforts to stimulate aggregate demand in the economy.

RVR refurbishes six passenger coaches
Thursday, 28th October, 2010
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new: People queuing to board an RVR passenger train in Kampala recently
By Samuel Balagadde

RIFT Valley Railways, the firm that runs the Kenya-Uganda railway, has refurbished six passenger coaches, but it is awaiting clearance by the Government to start using them.

The development was revealed during a field visit by the group from the 6th joint transport sector review workshop at Speke Resort Munyonyo. Each coach has the capacity to carry 144 passengers.

The workshop recommended that the coaches be taken over and maintained by the Government of Uganda, while RVR handles management and operation areas.

It also proposed that the fuel for locomotives be tax exempt to reduce operation costs to make transport fares affordable to all.

John Nasasira, the Minister of Works and Transport, said the recent review of the RVR concession would bear more fruits.

Revamping passenger transport can be among other interventions to control city centre traffic jam, especially during the pick hours.

u.g boy

October 29th, 2010, 12:02 PM

Shortage of houses to hit eight million Ugandans by 2020
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By Ephraim Kasozi (email the author)

Posted Friday, October 29 2010 at 08:32
Kampala

Uganda’s galloping population, high rates of rural-urban migration and slow development of housing could drive the country to crisis levels when eight million extra people will require housing by 2020, experts have warned.

Statistics show that Uganda currently suffers a housing deficit of 550,000 units across the country with urban areas soaking up most of the pressure with 160,000 units needed. Kampala, the administrative and commercial capital has a deficit of 100,000 units.

Mr Caleb Kakuyo, the chief commercial officer of National Housing and Construction Company (NHCC), a major player in the housing industry, warned that the current population growth of 3.3 per cent per year is likely to worsen the deficit due to rapid urbanisation.

“Our population is projected to grow to 45 million by 2020 and it is estimated that two decades down the road, Uganda will have a housing shortage of close to 8 million units of which 2.5 million will be in urban centres and one million in Kampala. About 87 per cent of houses in rural areas are reportedly owner-occupied while 49 per cent are rented,” Mr Kakuyo told journalists in Kampala on Wednesday.

Mr Kakuyo’s remarks come hardly a week before the opening of a 268 housing units in Kiwatule, a Kampala suburb. The housing project is part of a five-year strategic plan to address the housing deficit. Under the project, the National Housing is expected to construct 8,000 housing units countrywide by 2014.

Uganda to build first cable-stayed bridge in EA
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By Pauline Kairu (email the author)

Posted Friday, October 29 2010 at 08:33
Jinja

A monumental cable-stayed bridge with a length of 525 metres will replace the 56-year-old one at the Owen Falls Dam over the River Nile in Jinja, officials have said. It will be the first cable-stayed traffic bridge constructed in the region.

A cable-stayed bridge consists of one or more columns, normally referred to as pylons, with cables supporting the bridge deck. The Bridges Engineer at Uganda National Roads Authority (UNRA), Mr Jonathan Tugume, on Tuesday said the planned bridge will cost $125 million. The old one that sits atop the Owen Falls Dam-completed in 1954, is said to have exceeded its designed lifespan and is set to collapse if not relieved in time.

Despite numerous emergency repairs, it is still said to be in suspect structural condition.
Furthermore, its interconnectivity with the dam has been identified to be increasing its risk exposure.
The bridge is a major link between the Northern Corridor Route and Uganda’s landlocked East African neighbours like Rwanda, Burundi and Democratic Republic of Congo.

“The project will be funded using a $100 million loan from the Japanese government at an interest of 0.01 per cent while the government of Uganda will fund the remaining $25 million,” Mr Tugume said.
“The construction works have been appraised for financing by the Japan Government Development Loan and construction is expected to commence in mid-2012 and will be completed in 2016,” he said.

Mr Tugume was on Tuesday taking the 6th joint transport sector review team through the progress status of the second Nile Bridge project at the site in Jinja. The decision on this type of bridge was reached following studies on the geological features of the different proposed sites of the project, the engineer said.

The bridge
He said taking into consideration the width of the river (300 metres), the geological conditions of the area and the implications of building in the river’s waters, this type of bridge is the most technically feasible option.

The bridge to be located to the south of the old bridge will have two major pylons and a dual (2-lane) carriageway bridge deck (road surface) projected to serve for 120 years. The bridge will be constructed using concrete, and coated with an asphalt layer.

In appearance it will seem to be hanging in the air, supported by two 70 metre high pylons connected to the deck by heavy-duty steel cable stays. One pylon will be set on a small island in the river.

u.g boy

October 29th, 2010, 12:43 PM

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u.g boy

October 31st, 2010, 06:15 PM

Fort Portal – Bundibugyo-Lamia Road (103KM)
The upgrading of Fort Portal – Bundibugyo-Lamia Road (103KM) has started. . The road is currently a gravel road and is being upgraded to tarmac. The road project starts from Fort Portal town and descends through the foothills of Rwenzori mountains through Bundibugyo town to Lamia the border post with the Democratic Republic of the Congo. The Contractor has started earthworks excavation, embankment widening and installation of the crushing plant for production aggregates.

Apart from enhancing regional co-operation in the Great Lakes Region, the upgrading of the road will also enhance the administrative and social coverage in the region. The road is scheduled for completion at the end of 2012.

Matugga-Semuto-Kapeeka road (42km)
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The tarmacking of Matugga-Semuto-Kapeeka road (42km) is ongoing. The road starts at Matugga on the Kampala-Luwero-Gulu road about 18km from Kampala City centre. The road passes through Semuto town and ends at the roundabout in Kapeeka town.

The upgrading of the road to tarmac will bring about a lot of benefits in terms of substantial savings in vehicle operating costs and infrastructure maintenance costs to the rural population in the project area of Wakiso, Luweero and Nakaseke Districts.

The contractor for the road is China Chongqing International Construction Corporation, CICO. The supervising consultants are COWI A/S.

Physical Progress

Physical works started from the Matugga end in the Month of February 2009 with the earthworks and culvert construction activities. Over 50% of the works have been completed and the road is expected to be completed at the end of 2010.

Kabale-Kisoro Road (100km)
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The construction of Kabale-Kisoro-Bunagana road (100km) is ongoing. The road is currently a gravel road and is being upgraded to tarmac. The road starts at Kabale town, connects to Kisoro town and onwards to the border with the Democratic Republic of Congo (DRC) at Bunagana. At Kisoro town, a spur of 6km connects it to the border with Rwanda at Kyanika, thus effectively connecting to the road networks of both DRC and Rwanda. A diversion road of 5km length was included in this project on the southern side of the air strip at Kisoro. This road connects the Kisoro – Kyanika link. Apart from enhancing regional co-operation in the Great Lakes Region, the upgrading of the road will also enhance the administrative and social coverage in the region.

Cracks on Pavement

UNRA has observed some cracks on pavement with settlements in the sections of swamps with high embankments and huge fills. The effected stretches range from km 11 to km 37 and it occurred in one night. The Contractor, UNRA and independent Geo Technical Engineers are investigating the cause of the cracks. The problem will be rectified before the road is handed over to UNRA.

Road Works Update Masaka-Mbarara Road (154km)
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Masaka-Mbarara road is currently under reconstruction with additional works such climbing lanes and widening of curves. The Contractor started works from Lyantonde towards Mbarara. Works on the section from Lyantonde towards Masaka are ongoing. Over 50% of the work has been completed and the Contractor is expected to handover the first completed 50Km by the end of August 2010. The road is expected to be completed in 2011.

Physical Works

Physical works on Masaka-Mbarara road involve widening the road, realigning of bends, constructing of climbing lanes, parking lanes, bus bays and junctions. The final road will have a width of 11m including shoulders.

Soroti-Dokolo-Lira Road (125 Km)
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The upgrading of Soroti-Dokolo-Lira road to tarmac is nearing completion. The project is the first component of the Third Phase of the Road Development Program that is financed by the World Bank and the Government of Uganda. It is envisaged that the upgrading of Soroti-Dokolo-Lira road will bring about a lot of benefits in terms of substantial savings in vehicle operating costs and infrastructure maintenance costs. The road has already reduced the travel times and transport costs for road users to Southern Sudan and for the rural population in the project area of Teso and Lango sub regions.

Road Design Standards

When completed Soroti-Dokolo-Lira road will be 125 Km long and the finished road will be 9-meters wide on the minimum including shoulders. The shoulders have been built to the same specifications as the carriageway.

The upgrading of Soroti-Dokolo-Lira road to tarmac is nearing completion. The project is the first component of the Third Phase of the Road Development Program that is financed by the World Bank and the Government of Uganda. It is envisaged that the upgrading of Soroti-Dokolo-Lira road will bring about a lot of benefits in terms of substantial savings in vehicle operating costs and infrastructure maintenance costs. The road has already reduced the travel times and transport costs for road users to Southern Sudan and for the rural population in the project area of Teso and Lango sub regions.

Road Design Standards

When completed Soroti-Dokolo-Lira road will be 125 Km long and the finished road will be 9-meters wide on the minimum including shoulders. The shoulders have been built to the same specifications as the carriageway.

Kampala-Gayaza-Zirobwe road
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Kampala-Gayaza-Zirobwe road is currently under construction. The Kampala-Gayaza section is being upgraded and widened to 11m including shoulders, while the Gayaza-Zirobwe section is being upgraded from marrum to tarmac standard. There are plans to turn the section from Kampala (Kubiri roundabout) to Kalerwe (Kampala Northern Bypass roundabout) into a dual carriageway (four lanes). The physical progress as at the end of May 2010 was 60% and the road is due for completion at the end of 2010.

On completion, Kampala-Gayaza-Zirobwe will be 44Km long of tarmac road with shoulders along its entire length. Although the new road generally follows the old road, there is some realignment at Bulami and Janda areas to meet the improved standard requirements. A new roundabout will be constructed at the junction of Gayaza- Zirobwe and Gayaza-Kalagi road.

Environmental Mitigation

UNRA is working with the contractor, Energoprojekt Niskograndja, to reduce on the environmental effects of the works, especially the dust on the Kampala-Gayaza urban section. This is a busy road with live traffic during construction but everything possible is being done to reduce on the dust.

Property Compensation

The assessment and valuation of property affected by the project is being carried out by M/s East African Consulting Surveyors and Valuers, a private firm of valuation surveyors. Property compensation on the Gayaza-Zirobwe section is almost complete and has started on the Kampala-Gayaza section. UNRA is the process of reclaiming the national road reserve on the Kampala-Gayaza section. Garage owners, roadside markets and businesses that have encroached on the national road reserve are advised to relocate as soon as possible.

Reconstruction of Kampala-Masaka road
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The reconstruction of Kampala-Masaka road is ongoing on the Kamengo-Lukaya section. Maintenance works are also being carried out on this road in order to keep it in good motorable condition during the reconstruction period. The project is funded by the Government of Uganda.

Physical works involve reconstruction and widening of the entire road to 11m carriageway road including shoulders. Works will also include realigning of bends, constructing of climbing lanes, parking lanes, bus bays and junctions, and installation of new road signs and marking.

Progress of Work

Physical works started at the end of April 2009. The progress by the contractor on the Kamengo-Lukaya section is approximately 30%. The land compensation for expansion of the road is still ongoing. This road rehabilitation phase is supposed to be completed by the end of 2011.

Road Safety

Maintenance works are being carried out on this road in order to keep it in good motorable condition during the reconstruction period. Most potholes and edge failures have been patched. Motorists are urged to obey the safety measures put in place by the contractor and respect the diversions. Motorists are also advised to drive carefully and to watch out for flying stone chippings.

Kampala-Mityana road 57Km
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The rehabilitation of Kampala-Mityana road is ongoing. The project was divided in two contracts; Kampala-Muduma (27km) and Muduma-Mityana (30km).

The Kampala-Muduma section is being constructed by Spencon Services Ltd in JV with Stirling Civil Engineering Ltd. The supervisor is Lea International Ltd (Canada). The progress by the contractor is approximately 20% and completion of the project is scheduled for 2011.

The Muduma-Mityana section is being constructed by Dott Services. The supervisor is still Lea International Ltd (Canada. The progress by the contractor on this section is approximately 15% and completion of the project is scheduled for 2011.

Physical works for Kampala-Mityana road involve reconstruction and widening of the entire road to 11m carriageway road including shoulders. Works will also include earthworks, reprocessing of the existing pavements, rock-fill in swamps, realigning of bends, constructing of climbing lanes, parking lanes, bus bays and junctions, and installation of new road signs and marking.

Property Compensation

There has been a delay in assessment and valuation of property affected by the project but all those affected will be paid. UNRA is the process of reclaiming the national road reserve on this road. Roadside markets and businesses that have encroached on the national road reserve are advised to relocate as soon as possible.

Mbarara-Ntungamo Road (57.1KM)
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Major maintenance works on Mbarara-Ntungamo road are ongoing. The project commences approximately 7km from Mbarara at the end point of the reconstruction of the Masaka-Mbrarara road currently underway. The end point is the turnoff to Ishaka on the southern side of Ntungamo. This road has deteriorated due to time and the considerable number of heavy vehicles. The road is a vital portion of the road providing access to landlocked Rwanda and thus the road is of inter-regional importance.

Scope of Works

The scope of works has been kept to the minimum required for the road to carry traffic up to the time the new road has been constructed. This road is expected to under go complete reconstruction under a new contract commencing at the end of 2010.

Maintenance works on the main road will consist of repairing shoulders and resealing with a new layer of tarmac; spot rehabilitation of severely distressed areas with a double surface dressing; patching potholes and edgebreaks; resealing of the entire road to a width of 6.0m; cleaning and replacement of culverts; and installation of new road signs and kilometre markers.

Progress of Work

Permanent pothole repairs and reaseling works have commenced.

Although the commencement of the roadworks was behind schedule, it is believed that the project can be completed on time. The road is supposed to be completed by the end of April 2010.

Masaka-Kyotera 38Km and Nyendo-Villa Maria
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Major maintenance works on Masaka-Kyotera and Nyendo – Villa Maria roads have started. These two roads have deteriorated due to time and the considerable number of heavy vehicles. The roads are in need of repairs to improve their condition.

Maintenance works on the main road will consist of repairing shoulders and resealing; spot rehabilitation of severely distressed areas; patching; resealing of the entire road; cleaning and replacement of culverts; and installation of new road signs and kilometre markers.

Progress of Work

During October and November 2009 rain affected the progress of the works. It is believed that the partching could be completed by the end of the year. This would leave resealing the road as the major works to be completed.

Re-gravelling of shoulders along Masaka-Kyotera is ongoing. The re-gravelling of shoulders on Nyendo-Villa Maria also started.

Karuma-Kamdini-Lira Road Project (88KM)
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Major maintenance works on Karuma-Kamdini-Lira road have started. The project commences from the Karuma road junction approximately 12km from Corner Kamdini and ends in Lira town. This road has deteriorated due to time and the considerable number of heavy vehicles using the Soroti-Dokolo-Lira road. The road is a vital portion of the network providing access to Southern Sudan and North Eastern Congo, thus the road is of inter-regional importance.

Scope of Works

This project is divided in five sections as follows:

1. Lira Aduku Road – Lira Bypass West, 2km
2. Lira Roundabout – Ngetta, 8km
3. Karuma – Kamdini, 12km
4. Lira Bypass West – Corner Aboke, 23km
5. Corner Aboke – Kamdini, 43km

Maintenance works on the main road will consist of repairing shoulders and resealing with a new layer of tarmac; spot rehabilitation of severely distressed areas with a double surface dressing; patching potholes and edgebreaks; resealing of the entire road to a width of 6.0m; cleaning and replacement of culverts; and installation of new road signs and kilometre markers.

Progress of Work

The Contractor has commenced permanent pothole repairs and resealing works. Major works are on the section from Karuma to Corner Kamdini. The road is supposed to be completed by the end of June 2010.

Kawempe-Luwero-Kafu road (166km)
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The first phase for the rehabilitation of Kampala (Kawempe) – Luwero - Kafu road is nearing completion. The second phase will involve application of another tarmac layer to further strengthen the road. This phase will start next year.

This road, which was constructed in the late 1960s, is a critical part of the road corridor connecting Kampala to Northern Uganda, North – Western Uganda, Southern Sudan and the Eastern parts of the Democratic Republic of Congo. The critical condition of the Kawempe – Kafu road that was characterized by numerous potholes, depressions, deep edge breaks, eroded shoulders, etc. was creating an impediment to traffic movements on this corridor resulting in high vehicle operating costs, increased travel time and high accident cases.

Economic Benefits

There is a remarkable improvement of the economic activity and welfare of the people along the route in terms of agricultural production, travel time and saving on vehicle operating costs. Traffic flow to Northern Uganda, southern Sudan and Eastern Congo has been eased with the improvement on the road.

Road Safety

The road is almost complete but the road signs and marking have not yet been installed. Motorists are advised to obey the 80Kmph speed limit and look out for ongoing drainage works.

Matugga-Semuto-Kapeeka road (42km)
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the tarmacking of Matugga-Semuto-Kapeeka road (42km) is ongoing. The road starts at Matugga on the Kampala-Luwero-Gulu road about 18km from Kampala City centre. The road passes through Semuto town and ends at the roundabout in Kapeeka town at km 41.1. The physical works started in March 2009 and the road is expected to be completed by September 2010.

The upgrading of the road to tarmac will bring about a lot of benefits in terms of substantial savings in vehicle operating costs and infrastructure maintenance costs to the rural population in the project area of Wakiso, Luweero and Nakaseke Districts.

The contractor for the road is China Chongqing International Construction Corporation, CICO. The supervising consultants are COWI A/S

Physical Progress

Physical works started from the Matugga end in the Month of February 2009 with the earthworks and culvert construction activities. The road is expected to be completed by September 2010.

Compensation of Land and Property owners

M/s COWI supervising the construction works was commissioned to undertake the additional services of administering the compensation payments to the entitled persons within the Matugga-Semuto-Kapeeka Project area. Actual payments to the beneficiaries are ongoing.

Kampala-Mukono Road (23KM)
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Major maintenance works on Kampala-Mukono road are ongoing. This section of Kampala-Jinja road has deteriorated due to time and the considerable number of heavy vehicles. The road is need of repairs to improve it functionality.

Maintenance works on the main road will consist of repairing shoulders and resealing with a single seal; spot rehabilitation of severely distressed areas; patching; resealing of the entire road with a new layer of tarmac to a width of 7.2m; cleaning and replacement of culverts; and installation of new road signs and kilometre markers.

Progress of Work

The Contractor started works on 29 January 2009. The road is supposed to be completed by the end of January 2010 but the works are behind schedule.

Reconstruction of Kampala-Masaka Road
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The reconstruction of Kampala-Masaka road is ongoing on the Kamengo-Lukaya (51.6km) section. Maintenance works are also being carried out on this road in order to keep it in good motorable condition during the reconstruction period. The project is funded by the Government of Uganda .

Physical works involve reconstruction and widening of the entire road to 11m carriageway road including shoulders. Works will also include realigning of bends, constructing of climbing lanes, parking lanes, bus bays and junctions, and installation of new road signs and marking.

Progress of Work

Physical works started at the end of April 2009. The progress by the contractor on the Kamengo-Lukaya section is approximately 20%. The land compensation for expansion of the road is still ongoing. This road rehabilitation phase is supposed to be completed by January 2011.

u.g boy

October 31st, 2010, 11:03 PM

Lake Victoria forum to showcase EA potential
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Mark Muhumuza

KAMPALA, UGANDA - The EAC will host the inaugural Lake Victoria Investment Forum in Mwanza Tanzania to present investment opportunities around the world’s second largest fresh water lake.

The forum to be held under the theme “Realizing Economic Benefits in the EAC Common Market through the Lake Victoria Basin” is another effort to attract investment in the Lake Victoria Basin.

The Lake Victoria basin is an investment hub within the East African Community for its market of an estimated 30million an estimated annual GDP of $40m covering an area of about 194,000 square kilometres.

“The focus of the Lake Victoria Investment Forum will be to highlight the investment opportunities around the basin to delegates from around the world,” says Tom Okurut the executive director East African Community Lake Victoria Basin Commission (LVBC).

The potential of the Lake Victoria Basin is vast especially in the area promoting trade within the East African Community.

Water transport is the cheapest mode of transport but with the EAC it is predominantly road and air transport. These forms of transport are much more expensive compared to rail and water transport.

“When the MV Kalangala was taken for repairs, investors on the Kalangala Islands lost millions and that’s why we need investors who can provide a solution instead of relying on one ship,” says Maggie Kigozi the Executive Director of the Uganda Investment Authority (UIA).

Investors on the Island are estimated to have lost over $0.5m because of the repairs that were being done MV Kalangala.

Water transport would also boost movement of goods and services across the region at reduced costs.

Farmers in the regionwould easily and cheaply access markets borders easily. Importers would also have goods moving from Mombasa, be loaded on a ship at Kisumu and shipped to Mwanza port in Tanzania and Port Bell in Uganda.

“The lake is cheaper and quicker and therefore it maximises the profits of traders and offers a better price for eventual consumers,” Dr. Kigozi adds.

Lake Victoria is Africa’s largest lake, the largest tropical lake in the world and is earth’s second largest freshwater lake - only second to Lake Superior in North America.

The lake supports Africa’s largest inland fishery and is home to thousands of biodiversity, flaura and fauna.

It is a source of food, water and some of the world’s most beautiful tourist attraction spots.

There are about 88 islands on Lake Victoria with 48 of them being big islands with the potential of being tourism destinations.

There are tourism resorts on some of the Islands but there is still need for more.

The development of beaches around Lake Victoria can also grow tourism in the East African countries.

Investors interested in the area of tourism development on the Lake Victoria Basin can take this on and the forum will show investors these opportunities.

Ninety per cent of Uganda’s fish is from Lake Victoria but there have been challenges especially poor fishing methods which led to depletion of some fish on the lake.

The fishing villages around the lake depend on it but they are mostly poor. Investment in the fish industry would open employment opportunities for these people.

Investors here would introduce better fishing methods and also build modern markets for the fish produce.

This can grow agribusiness in the Lake Victoria Basin by adding value to farmers who practice along the lake and providing ready market.

“Hydro Electric Power is another area of investment to meet the energy needs of the region and this is still an area that needs more investment to meet the energy deficit,” says Dr. Okurut.

The Lake Victoria Basin is part of the Nile Basin which means that some investment projects like energy may require the approval of Sudan and Egypt that are largely dependent on the Nile since they are desert areas and use the water for irrigation.

The East African Investment Promotion Agencies in the region want investment but will also want the eco-system preserved.

Lake Victoria as a lake is prone to pollution from industries and people dumping garbage yet Kenya, Uganda and Tanzania depend on it for the various weather patterns they experience.

The Lake Victoria Investment Forum will attract over 1000 delegates from around the world who may want to invest in this area that was designated as an important explosive economic growth zone for the East African Community.

UIA targets projects worth $850 million in 2010
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David Muwanga

KAMPALA, UGANDA: Uganda Investment Authority (UIA) is targeting to attract investment projects worth $850 million in this calendar year.

The investment promoter has hopes of attracting projects of investment value worth that much because of further improvement in the investment climate this year.

“We are improving the investment climate where government is ensuring that power tariffs that had been taken to be the highest in the region are brought down with the completion of the Bujagali power project, which will produce 250MW by July next year and the Karuma power plant whose process is on course,” said the authority’s executive director Prof. Maggie Kigozi.

With support from the World Bank, the authority is developing the Kampala Business and Industrial Park (KIBP) at Namanve, 20km East of Kampala.

“We have got 300 investors planning to invest in the park and in addition, we have identified more industrial parks in Mbarara and Kasese in western Uganda, Soroti in the east and Gulu in northern Uganda,” she told The East African Business Week in an interview last week.

Kigozi said another item that would boost investment is the Ush16b land fund that was given to the authority to purchase land upcountry and service it with water, electricity and telecommunications as another way of attracting investor’s upcountry.

“In addition to the Namanve Park, we have got land in Bweyogerere and Luzira where we are developing industrial parks and these will enable us to attract more investors and enable small and medium enterprises grow,” Kigozi said.

She said UIA is also planning to hold outward missions to Egypt, Libya, Abu Dhabi and Iran.

This year, Uganda will host the third East African Investment conference scheduled for April.

Rwanda hosted the first one and Kenya hosted the second conference last year.

“It is our turn to showcase the investment opportunities to regional investors especially from Kenya and particular investors from the United Kingdom and India who are expected to attend the conference,” Kigozi said.

It is expected that five Heads of State for the EAC member states will address the conference that is planned to attract over 1000 participants.

Another opportunity the UIA expects to use to exploit in attracting investors is the Common Market for Eastern and Southern Africa (COMESA) conference to be held in Cairo, Egypt in April this year.

She revealed that Uganda plans to exploit the increase in food demand in the region by attracting more investors in the agriculture sector.

President Yoweri Museveni in his New Year address said that with the increasing availability of electricity, there is greater potential for increased value addition to be carried out even at the farm level.

This Financial Year 2009/10, Government will provide support to food science and technology graduates from Makerere University who has acquired both the technical know-how and entrepreneurial skills at adding value to agricultural produce.

“It is possible to add value to a whole range of products including fruit, milk and meat products,” Museveni said.

“We are now targeting investors in commercial products who also create jobs for out-growers while adding value to our products,” said Kigozi.

She said there is increasing demand for food and food products in Southern Sudan, Kenya, DR Congo, Rwanda, the European Union, China, and the United States of America among others.

Kigozi said that government is also putting up the public private partnership (PPP) authority whose responsibility will be to package investment opportunities where the private sector and government can work together.

“We are fast tracking the law to establish the authority that will develop a database of all privatized parastatals that would be transformed into small, efficient business-oriented units,” she said.

Uganda bank sets $45m for housing
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Aggrey Nshekanabo

Kampala, Uganda - Housing Finance Bank (HFB) has launched two new mortgage products - Construction Mortgage and Commercial Mortgage financing.

According to Mr.Patrick Kabonero, the bank's Executive Director, the financing estimated to be over Ushs100billion (US$45m) will assist property developers in the country to put up commercial and residential properties for sale.

"Property developers of industrial, office and residential apartments, University hostels and hospitality parks will borrow a minimum of Ushs500m (US$227,000) while the maximum is infinite," Kabonero revealed at the launch of the facilities.

In Kampala recently. He said that the bank will advance property developers up to 70% of the entire projects cost. He however emphasized that the properties developed are for sale to end users.

Presently, according to Mr. Nicholas Okwir, the bank's Managing Director, Uganda has over 600,000 housing unit deficit. Therefore, financing property development to companies is meant to help address this acute shortage.

Okwir revealed that the facilities are financed in partnership with the country's savers scheme National Social Security Fund (NSSF), PTA Bank, ADB, EADB, European Industrial Development Bank and AFD, a French financing agency.

Recently, Housing Finance Bank issued Ushs 30billion (US$15m) bond that was oversubscribed.

Ugandan Minister of State for Urban Planning Urban Tibamanya said at the launch that the housing deficit currently experienced in the country is bound to increase further from 600,000 housing units due to unchecked population rise.

He expressed worry at the poor settlements continuing to spring up in urban centres if other partners do not come on board to scale up construction of affordable housing units in properly planned environments.

u.g boy

November 1st, 2010, 06:47 PM

City road works start next month
Sunday, 31st October, 2010
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By Taddeo Bwambale

PRESIDENT Yoweri Museveni has directed the works ministry to immediately start work on two pot-holed roads in downtown Kampala.They are Kafumbe Mukasa and Kisenyi roads, which border St. Balikudembe Market.

Touring the roads yesterday, the works minister, Eng. John Nasasira, said the repairs start next month.

Museveni visited the area recently and promised the business community that the roads would be repaired soon.

This followed complaints from the traders about the poor state of the roads and faulty sewage system, which they said was hurting their businesses.

Over 5,000 traders operate in the area and each pays an average of sh50,000 per year in taxes.

Earlier this year, they threatened to stop paying taxes to Kampala City Council (KCC) unless the roads are rehabilitated.

Nasasira said the works will also include the expansion of the main drainage system.

The repairs on the roads had stalled for a long time following disagreements between traders, local leaders and KCC over the quality of works.

The Government, through the Kampala Capital City Bill 2009, wants to take over some of the city roads.

However, the Bill has opposed the take-over.

Local leaders blame the problem on corruption among some KCC engineers, whom they said take bribes to approve shoddy work on roads and sewage systems.

The roads, which have existed since the 1920s, serve as major routes in the densely populated business community for low-income earners.

Turkey gets embassy in Uganda
Sunday, 31st October, 2010
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By Darious Magara

THE Turkish government celebrated its 87th independence anniversary on Thursday, and used the occasion to open its embassy in Kampala.

The foreign affairs state minister, Henry Okello Oryem, presided over the celebrations and officially opened the embassy offices located at the Elgon Terrace in Upper Kololo.

“Today marks an important milestone in the history of Uganda and Turkey relations. For the first time, the two countries are celebrating Turkey’s national day together on Ugandan soil” Oryem said.

The minister saluted the Turkish government for opening a resident embassy in Uganda, which he said reflected Turkey’s growing attention to Uganda and Africa.

He said Uganda would open a resident embassy in Turkey to promote bilateral relations between the two countries.

Oryem said the two embassies would promote cooperation, trade, tourism and the exchange of knowledge and culture.

He congratulated Melih Ulueren upon being appointed the first Turkish ambassador in Kampala.

Ulueren noted that Turkey was the 16th-largest economy in the World. He said they were ready to offer high quality technology and goods at a good price to Uganda and East Africa.

“We see our relations with Uganda and East Africa on a win-win basis. Together we can bolster each other’s economies through cooperation and trade” he added.

Oryem said, President Yoweri Museveni visit to Turkey in May paved the way for the two countries to get closer.

He said during Museveni’s visit, the two presidents witnessed the signing of a bilateral air service agreement.

“Following the signing of the bilateral air service agreement, Turkish airlines made its maiden flight from Istanbul to Entebbe on June 14,” Oryem added.

He said the three direct weekly flights week to Uganda will boost trade, tourism and investment.

Oryem thanked the Turkish government for awarding 12 scholarships to Ugandan students.

He noted that Uganda would learn a lot from Turkey’s experience in various fields, including construction, tourism, textiles and technology.

CAA takes back airfield in Jinja
Sunday, 31st October, 2010
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By Frank Mugabi

THE Civil Aviation Authority (CAA) has repossessed Kimaka Airfield from Jinja municipal council.

Sam Woneka, the authority’s manager for up-country aerodromes, said the contract was recently cancelled due to poor management.

“They had run it down to the point that it was almost becoming a forgotten facility. The runway had virtually disappeared in a bush,” Woneka said.

He said they leased out the airfield to the council in 1998 under the Government policy of diversification.

Woneka was briefing participants from the joint transport sector review conference who visited the airfield on Tuesday.

He disclosed that following the repossession, CAA invested over sh470m into major repairs, including the re-gravelling of the runaway and renovation of the terminal building, completed in June.

Herbert Ngobi, the CAA chief civil engineer, said the traffic flow had since increased, with 14 flights and 145 passengers registered from August 17 to October 26.

The municipal council registered no single flight during its management tenure, he noted.

Hoima to get oil refinery
Sunday, 31st October, 2010
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Lokeris (right) and Kaliisa (centre) on a tour of the construction site in Hoima district

By Robert Atuhairwe

UGANDA is to build a $4.6b oil refinery in Kabale-Buseruka, Hoima district, the energy state minister, Peter Lokeris, has disclosed.

The refinery will process crude oil for domestic consumption and for export. Construction works will begin in 2012 and the commissioning will be in 2015.

Lokeris was speaking on Thursday during a consultative workshop on oil and gas at Kolping Hotel in Hoima. The workshop was attended by representatives of community-based organisations, non-governmental organisations and community leaders.

The permanent secretary of the energy ministry, Kabagambe Kaliisa Fred, and the lands commissioner, Jjonah Anguzi, attended the workshop.

Lokeris said the ministry and private partners would contribute to the construction of the refinery.

“We had proposed Nakasongola as the construction site for the refinery, but the team carrying out the feasibility study recommended Kabale-Buseruka in Hoima,” Lokeris said.

The study was carried out by Foster Wheeler Energy Limited, a UK-based firm.

Lokeris noted that Hoima was chosen because it is where the oil and gas were discovered and constructing the refinery elsewhere would be uneconomical.

He noted that the refinery would provide employment to many Ugandans.

Lokeris said market for refined products had increased following population growth in Uganda, the Democratic Republic of Congo, Southern Sudan, Rwanda, Burundi, Tanzania and Kenya.

He added that apart from fuel, other by-products from the oil would be used to build roads and manufacture plastics.

Lokeris advised the residents in areas where the refinery will be set up not to sell land to individuals who disguise themselves as state agents, but to wait for the Government to buy it from them at a good price.

Anguzi promised that the residents in the affected areas would be compensated. He added that about sh12 trillion will be allocated to the development of infrastructure in the area.

Ugandan goods excite Syrians
Sunday, 31st October, 2010
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By Ahmed Mukiibi

SYRIAN investors have been thrilled by the high quality of Uganda’s agricultural products, the head of the Syrian Consulate in Uganda has said.

Speaking at the newly opened consulate offices at Kololo in Kampala, Dr. Tamouh Mostafa, said many Syrian businessmen had made business contacts in Uganda.

“One is interested in exporting mahogany to Syria. He was impressed with the quality of Uganda’s mahogany varieties,” Mostafa said.

Syrian businessmen who have visited Uganda in the last two months have exported a consignment of simsim, coffee and ghee to Syria.

Mostafa added that Syria intends to set up a permanent exhibition centre in Kampala to showcase Syrian products such as furniture, construction materials and textiles.

Ugandan businessmen have also started exploring business interest in Syria, Mostafa said.

“I have given visas to over 20 Ugandans in the last two months to go to Syria to do business,” he said.

Police seeks house developers
Sunday, 31st October, 2010
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By Steven Candia

THE Uganda Police Force (UPF) is inviting bids under a Public Private Partnership (PPP) arrangement aimed at solving the accommodation crisis in the institution.

In a press notice issued by the Ministry of Internal Affairs last week, interested and eligible bidders should submit sealed bids under the Open International Bidding expressing their interest to provide the services.

“The bidding process will be conducted in accordance with the Open International Bidding under The Public Procurement and Disposal of Public Assets Authority (PPDA) procedures,” the statement read.

Under the new arrangement, investors, the public and private sectors will be expected to finance and construct partially serviced houses and commercial facilities on Police land in Kampala, Entebbe and Masindi districts.

The investors will construct houses in the Police barracks, headquarters, Police stations, regional offices and be offered free land to put up investments for a given duration of time.

The Internal Affairs Permanent Secretary, Stephen Kagoda, on Thursday said the duration will have to be agreed upon, taking several factors into consideration.

“That will be reached at after negotiations with the respective investors,” Kagoda said, adding that the venture was aimed at improving the welfare of the Police.

“What we are saying is that we have our land and want to develop it and so we are looking for people to partner with us,” he said.

He noted that the programme would start off in Kampala metropolitan area and roll-out to other places where Police has prime land.

“In other parts of the country we will use government resources to develop structures,” hepointed out. The project comes against the institution facing a major accommodation crisis, with inadequate and dilapidated structures.

Under the initial arrangement, the project would be implemented in two phases.

Phase one will include the construction of 7,215 residential houses, a training academy, three regional offices, 11 divisional stations and 11 stations.

Phase two will involve replicating the projects in other parts of the country.

Private sector promotes local products
Sunday, 31st October, 2010
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By Mark Owor

THE Private Sector Foundation has organised an exhibition to promote local products.The “Quality Ugandan Products” campaign runs from November 2-4 at the Uganda Manufacturers Association Main Exhibition Hall in Lugogo, near Kampala.

The free-for-all fair will also conduct business development sessions on quality and standards, aimed at enabling the public see and learn new technology and ideas in producing local products.

“The Private Sector Foundation has run campaigns to promote locally-produced goods and services since 2007.

“We have realised the need to promote these products and services continuously to enhance their competitiveness and sustainability on the market,” Sarah Nakibuuka, the communications manager, said in a statement.

“It aims at changing the general consumer perceptions that Ugandan products are of poor quality. The benefits of the changed perceptions are increased consumer preferences of Ugandan products, increased capacity utilisation, higher employment and incomes. Purchasing power will increase and the market will grow which will result in enhanced profitability,” Nakibuuka noted.

The 2010 campaign will run under the theme “Promoting the Value of Ugandan Products and Services on the East African Market.

Gideon Badagawa, the foundation’s executive director, said enhanced sustainable production, competition, income and raising the profile of locally-manufactured goods and services as some of the objectives of the campaign.

“The campaign seeks to create visibility and raise awareness about the available quality local products and services and also to translate this into actual purchases of these goods and services,” Badagawa said.

He noted that Ugandans spend nearly $1b on imported goods and services “whereas a good number of Ugandan companies also produce high quality products and services.”

Badagawa said the products and services included vegetable oils, textiles and garments, beauty care, paints, beverages, construction, reading materials, mattresses and furniture, plastics, rice, footwear and soaps.

u.g boy

November 1st, 2010, 09:14 PM

uriNDGeXuKw

u.g boy

November 2nd, 2010, 08:04 PM

Experts call for regional cities
Monday, 1st November, 2010
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By Andante Okanya

URBANISATION experts have advised the Government to establish regional cities so as to reduce development pressure in Kampala, according to a local government ministry report.

The experts said the Government must abandon its current mono-city policy.

“Regional cities will also address regional economic disparities,” the report said.

The commissioner for urban administration, Charles Katarikawe, said the lack of an urban policy had caused chaos in Kampala.

He said some towns develop due to the influence of truck drivers who park along the road, while others are formed from petty local brew drinking joints.

Katarikawe was speaking at the Golf Course Hotel in Kampala during a handover ceremony of the report on the Urban Policy Development project last Friday.

The $240,000 (about sh534.7m) project, funded by the UN Development Programme, started in 2008 with research across the country.

The report said due to the high costs associated with building new cities, it would be “appropriate to elevate” some of the existing key municipalities to city status.

Tamale Kiggundu, the research team leader, said the Government should channel more of its resources to urbanisation rather than village development.

“Cities serve as pillars of a global economy. There is no way a poor country can develop without emphasising urban development,” Kiggundu said.

He said the establishment of the regional cities should be based on functionality, and not merely to serve political interests.

Karimojong urged to lead in transforming region
Monday, 1st November, 2010
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Mrs. Museveni with UNICEF deputy country representative May Anyabolu and Narinder Sharma, a UNICEF official based in Karamoja and Teso regions, at Speke Resort Munyonyo on Thursday
By Vision Reporter

THE First Lady, who is also Karamoja affairs state minister, has urged the Karimojong to initiate and own the transformation process of their sub-region in order to realise its potential.

“The major purpose of the Government is to create a good supportive policy environment which will enable the people of Karamoja to reach a position where they can unleash their potential and transform their land by exploiting its resources,” Janet Museveni said.

She noted that although Karamoja’s history was littered with misunderstanding, neglect, exploitation and conflict which has made the region trail behind the rest of the nation in development, the Government support is aimed at ending the vicious cycle through its various policies and programmes.

Mrs. Museveni cited Government programmes like the disarmament and pacification programme, mobilisation and support for food production and provision of water among those shaping the direction for Karamoja’s future.

“In the last one year, the State has awarded scholarships to over 60 Karimojong students who had obtained university admission. Now we have a commitment from the President that 100 Karimojong students will be supported every year to attend university and other higher institutions of learning,” she added.

The First Lady was addressing stakeholders in the development of Karamoja at a workshop organised by the United Nations Children’s Fund (UNICEF) on Friday at Speke Resort Munyonyo in Kampala.

Karimojong resettle around dam
Monday, 1st November, 2010
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Kobebe dam under construction in Moroto district
By Olandason Wanyama

MOROTO district leaders have embarked on a mobilisation drive to resettle Karimojong families around Kobebe dam ahead of its completion in January next year.

The resident district commissioner, Nahaman Ojwe, told the herdsmen on Friday that the area had agricultural potential.

“The area around Kobebe dam has a lot of wealth promises,” he said.

Kobebe, a multi-purpose dam being constructed by a Chinese company, will have a total storage capacity of 2.3 billion litres of water.

The Government said the water will be used for small scale industries and irrigation, since lack of water has been the biggest problem that has hampered development in Karamoja.

Ojwe said the area was good for grazing and growing crops.

He said the army had been deployed to protect residents from warriors.

“We can also reverse the trend of dryness in our region by preserving the environment,” he pointed out.

Ojwe cautioned the Karimojong against cutting down trees, saying it was the cause of persistent drought in the region.

Masindi town road works start
Monday, 1st November, 2010
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A worker grading Karugaba road in Masindi town last month. Over sh346m has been committed to road rehabilitation by Masindi Municipality.

The money will be used to grade and tarmac roads on the municipality’s main streets

Masaka gets sh2b for modern market
Monday, 1st November, 2010
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By Dismus Buregyeya

NYENDO-Ssenyange division in Masaka municipality has received sh2b from the central government to construct a modern market.

Construction of the storied market will begin in January, according to Gonzanga Kisirinya, the division LC3 chairperson.

Addressing residents of Nyendo during the swearing in ceremony of the market leaders on Wednesday, Kisirinya said the old stalls will be relocated before December.

“All those who have stalls should register because they will be given priority after completion of the modern market,” he said.

The new market will have a micro-finance project, children recreation centre, hotels, vehicle loading and off-loading provisions, including a health dispensary, according to the division town clerk, Mary Achaa.

Masaka municipal council recently received sh3b for the construction of a modern market to replace the dilapidated central market.

The Government accessed the funds from the African Development Bank.

Masaka mayor Charles Kasibante warned all stakeholders to keep politics out of the management of the facility.

“We are facing some difficulties in establishing a leadership for the market and that is why construction work for the municipal market, which was scheduled to take off by September, was pushed to next year. Let’s keep political interests out of the market project,” he said.

The market vendors were advised to prepare to be relocated near the Masaka taxi park until the new market construction is completed.

But the market’s vendors have opposed the instructions, saying they prefer to operate in the children’s park, which is in the centre of the town.

Mulago gets new ENT gear
Monday, 1st November, 2010
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By Juliet Waiswa

MULAGO Hospital has received modern equipment for the otolaryngologist (Ear, Nose and Throat) department.

The equipment will be used to treat minor throat operations like the voice box. This will save Ugandans from travelling abroad for the operation, Dr. Julius Wambete, a surgeon and the clinical head of ENT at Mulago, said.

Wambete said the equipment included an endoscope, camera and a screen.

“We have been using old equipment to see through the ears, nose and throat. The endoscope will help us identify the problem in these areas before we operate,” Wambete said.

An endoscope is a device with a light attached to it that is used to look inside a body cavity or organ. It is inserted through a natural opening.

He said the out-patients ENT clinic receives 80 cancerous patients per month yet the hospital lacked the equipment required to treat them.

Wambete said this had caused delay in carrying out operations. “In a month, only eight patients are operated upon,” he said.

The equipment was handed over to the hospital director, Edward Ddumba, in the Mulago boardroom last Wednesday, by Prof. Emeritus Murray Morrison, an otolaryngologist at the faculty of medicine in British Columbia.

Morrison said the $30,000 (sh64m) equipment was purchased by the Rotary Club of Vancouver in collaboration with the Kololo-Kampala Rotary Club.

He said the equipment has a screen, which will enable more than one doctor participate in operations, and will help intern students to adapt easily to ENT operations.

KCC advised to set up storied, underground parking in city
Monday, 1st November, 2010
By Josephine Maseruka

ROAD experts have tasked Kampala City Council (KCC) to build storied or underground car parking in order to decongest city streets.

The experts, who were attending the sixth Joint Transport Sector Review conference at Speke Resort Munyonyo, argued that the only way to improve parking in Kampala was to ensure that all structures have underground and storied parking areas.

Eng. M.M. Odongo, the Uganda Road Fund executive director, told the officials to ensure that structural plans with underground parking are approved and are followed up so that what should have been a parking area is not turned into an arcade.

Many storied buildings in Kampala, especially those with shopping malls, have no parking areas.

The town clerk, David Kigenyi Naluwayiro, said the council would embark on an immediate study of improving parking in the city.

Naluwayiro attributed the dilapidated city roads to inadequate funding, old roads, and KCC’s low locally generated revenue with the ever increasing human and vehicle population.

He said 85% of the tarmac roads had reached ‘their design life’ and required reconstruction instead of the expensive maintenance works that include filling potholes

He said KCC requires sh1 trillion to effectively work on all roads compared to the annual sh15b from the road fund.

However, Bonnie Nsambu, the programme engineer for Kampala Institutional and Infrastructure Development Project, said decongestion of city roads could be effectively achieved by improving public transport services.

Nsambu regretted that the only significant addition to the city’s road network over the past 30 years was the construction of the 21-km Kampala Northern Bypass.

“The road network in Kampala is not only inadequate, but has also been neglected. About 40% of the roads are in poor condition and only 17% are in good condition by modest standards,” he said.

Nsambu said sh53b is required annually for routine and recurrent maintenance of city roads. An additional sh525b is needed to cater for the backlog of road strengthening, reconstruction and upgrading.

Mulago ward to get sh337 boost
Monday, 1st November, 2010
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THE Uganda Manufacturers Association has started a drive to raise sh337m to renovate the casualty ward at Mulago Hospital. The renovation is aimed at elevating the ward to a modern facility and increase its capacity to handle more patients.

The 40-bed casualty ward handles emergency cases for accident victims and patients with serious illnesses, but is often overwhelmed with the big number of patients.

UMA chairperson Kaddu Kiberu said the project was initiated in 2005 when each member of the association was asked to contribute at least sh6.7m towards the project.

u.g boy

November 2nd, 2010, 09:01 PM

Uganda gets 268 new housing units

Paul Mwijagye
http://www.busiweek.com/10/uploads/NHCC-020.jpg
Kampala, Uganda - National Housing and Construction Company Limited (NHCC) is planning to build 8, 728 housing units by 2014, the acting managing director Mohammed Momran has said.

Momran made the revelation at the opening of NHCC’s Sunset Apartments in Kiwatule, a Kampala suburb. He said so far, of the 8,728 housing units, 132 are already under construction at Kyambogo, Bugolobi and Lubowa suburbs of Kampala. Momran said the units will be constructed to cater for all income groups.

Speaking at the opening ceremony, Uganda’s first lady and state minister for Karamoja affairs Janet Museveni said the government was aware of the fact that housing in Uganda still remains a painful problem because many people cannot afford adequate housing.

“The Uganda Household Survey of 2002/03 shows that with 4.9million housing units, the country still has a deficit of close to 700, 000 housing units,” noted Janet, adding “Urban areas are particularly strained with a deficit of about 150, 000 housing units. Kampala alone with its rapidly increasing population needs over 800, 000 additional housing units,” she said.

She said in addition to private players, the government’s initiative of building 4, 000 housing units every year will help address the deficit.

With 12 blocks and a total of 268 individual units, Sunset Apartments are 3-bedroom apartments ready for purchase at UShs155.6 million per unit. Momran however said all the units in the estate have already been taken.

The estate is accessible on a tarmac road and it boasts of a gym, day care for children and a canteen. Along with this, each 130 square metre apartment has a self-contained master bedroom, separate sitting and dining rooms, two balconies and data, phone and cable TV connections.

Keith Muhakanizi, the board chairman NHCC said the company also plans to construct 120 units in Mbarara, western Uganda in 2011.

Despite the booming construction, Muhakanizi said the housing sector in Uganda faces challenges which include lack of mortgage finance, high interest rates, inadequate capital to develop new housing estates, lack of relevant technology and infrastructure.

u.g boy

November 3rd, 2010, 07:22 PM

Kampala boundaries to be retained
Tuesday, 2nd November, 2010
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By Catherine Bekunda
and Joyce Namutebi

THE Government has agreed to retain the boundaries of Kampala City and have a directly elected mayor.

The Government had under the Kampala City Bill, proposed that a metropolitan area including, the Entebbe-Kampala corridor, Makindye-Ssebagabo sub-county, Kira town council in Wakiso district and part of Mukono be added to the current city boundaries.

This means that Rubaga Division and Mengo parish in the Central Division, which had earlier been proposed to constitute Mengo Municipality, will remain in the capital.

Local government minister Adolf Mwesige told MPs yesterday that contrary to its earlier proposal, the Government would allow the city mayor to be elected through adult suffrage. It had been proposed that the mayor be chosen by an electoral college comprised of councillors.

The public service and local government committee, which scrutinised the Bill, had noted that, “the universally elected mayors tended to be untouchable because they feel it is the people who elected them and they are the ones to remove them.”

Odonga Otto (FDC) said he was comfortable with an appointed mayor and urged the minister to revert to the original position.

He proposed compulsory acquisition of land in Kololo to decongest the city, while Jalia Bintu (NRM) suggested putting up another city between Nakasongola and Masindi.

MPs John Kawanga and Erias Lukwago, both DP, noted that the Bill had been brought in too late and would affect the electoral process, which is already underway with nominations for councillors and mayor due tomorrow.

Abdu Katuntu (FDC), the committee chairman, supported the Bill, saying the committee had traversed the country and noticed that there was a fundamental problem regarding administration of urban centres. “We need to do something about Kampala and all the urban centres,” he said.

Informal enterprises reach 1.8m
Tuesday, 2nd November, 2010
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By Paul Tentena and Juliet Waiswa

INFORMAL businesses reached 1.8 million in 2009/10, a survey by the Uganda Bureau of Statistics (UBOS) has indicated.

Imelda Musana, the principal statistician, explained that of the number, 86% were household-based entities.

Another 51% of the businesses, Musana pointed out, were less than six years old, 13% had operated for more than 20 years.

“We found out that most people were struggling to cope with life. They have resorted to brewing beer and weaving baskets at home,” said Musana.

This was during the release of the Uganda National Household and the National Panel surveys in Kampala recently.

The Uganda National Household survey had labour, informal sector, community and qualitative modules including people’s standards of living.

It collected socio-demographic data requirement for measuring human development and monitoring of social goals. James Muwonge, the manager for socio-economic services, said 7,000 homes were sampled across the country over one year.

“The bureau conducted this survey to provide information on socio-economic characteristics of Ugandans and to meet data needs of users and other collaborating institutions like donors,” he said.

Musana noted that 94% of the businesses were under sole proprietorship, hawkers account for only 1% of the businesses.

She said the labour force increased to 11.5 million, from 9.3 million in 2005/06.
Musana indicated that the central region had most of the informal businesses at 36%.

The household survey also showed that the literacy level in had increased from 69% in 2006 to 73% in 2010.
This was attributed it to an increase in the enrolment in the Universal Primary Education and the Universal Secondary Education during the last five years.

Nakumatt takes over Payless Supermarket operations
Tuesday, 2nd November, 2010
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By David Ssempijja

EAST African supermarket chain Nakumatt Holdings has bought Payless Supermarket.
“We bought them (Payless Supermarket) out. Stores formerly occupied by Payless will be operating under our management in a few days.

“We are making infrastructural improvements,” Nakumatt Uganda branch manager, Joshua Ng’ang’a, said.

He said Nakumatt retained 80 former Payless workers who are undergoing “intensive training to gain the required standards.”

Ng’ang’a disclosed that some sh1.34b had been injected in the takeover and premise refurbishment.

Branches taken over include the Bugolobi and Bukoto.

“But these small branches will just keep our name in these locations as we plan to set up bigger stores in the same areas,” Ng’ang’a revealed.

It is not yet clear what struck Payless Supermarket out of business.

“Payless Supermarket could have faced problems like any other business and management found out that business could not go beyond a certain point.

“That is why Nakumatt is taking over,” one of the former managers noted.

For the last two weeks, ‘beehive’ activities have been going on in locations formerly occupied by Payless Supermarket with banners reading ‘Nakumatt opening soon.’

Nakumatt runs over 23 stores in major towns like Mombasa, Kisumu, Eldoret, Meru, Kisii, Kampala and Kigali.

It opened its doors to Kampala shoppers in June last year with a $3m (about sh6.6b) initial investment, initiating a new 24-hour service.

This forced major competitors in the Kampala upscale areas to shape up.

Nakawa, Naguru tenants get eviction deadline
Tuesday, 2nd November, 2010
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The tenants at Naguru Housing Estate have been given two months to vacate the houses
By Darious Magara

TENANTS of the Nakawa and Naguru housing estates in Kampala have been given two months to vacate the place.

John Kashaka, the permanent secretary of the local government ministry, yesterday told the tenants that the estate would soon be re-developed into a satellite town.

He said this at Kembabazi Catering Centre in Naguru while handing over memorandums of understanding to tenants who signed agreements with the Government to give them priority to benefit from the re-developed housing units.

Kashaka said the exercise, which started on Monday, will last up to Friday.

He added that the President had directed that the plan be rolled out quickly.

Mohammed Mulindwa, the Comer Group Uganda chief operations officer, said Opec Prime Properties, a UK-based firm, would undertake the redevelopment.

He said the satellite city, with houses for middle-income earners and a business district, would cost over $300m (about sh686b).

According to Mulindwa, the bona fide tenants would buy low-cost flats.

The estates, which occupy 66 hectares, have 1,750 dilapidated housing units, which have been condemned by Kampala City Council.

Meanwhile, the Naguru-Nakawa tribunal will wind up work of establishing the right tenants on Friday, Tom Matte, the chairman, said.

u.g boy

November 3rd, 2010, 07:27 PM

MOSAC takes rallying to Gulu
Tuesday, 2nd November, 2010
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Unisan Bakunda survives rolling his buggy at the bridge during the Ultimate challenge race at Busiika on Sunday
By Douglas Mazune

HARDLY a week after hassling at the newly constructed Uganda motorsport arena in Luwero drivers will be treated to another new challenge when rallying returns to Gulu after 35 years this Saturday.

The Gulu rally has two competitive sections and a sprint at Kaunda grounds in Gulu Municipality. Gulu residents last watched motor rallying during the cross-border OAU rally in 1975. Cars will be flagged off at Acholi Inn and will cover the 10.6-km Koro-abili—Kweyo section and the Bar-dege to Coope (19.2-km) leg before heading to Kaunda ground for the sprint that covers 8-kms.

Event manager Jeff Kabagambe explained that Motorsport Africa Club (MOSAC) originally had only a sprint on the calendar but added competitive sections to explore the possibility of holding a national event in Gulu next season.

“As a club we took the initiative to take the sport beyond the usual regions of Buganda, Busoga and Western Uganda. The route is smooth and safety should be okay,” Kabagambe explained. He expects Gulu to attract many races in future.

Over 30 drivers are expected to compete in the event.

u.g boy

November 4th, 2010, 12:10 AM

Bourse turnover rises
Wednesday, 3rd November, 2010
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By David Mugabe

NATIONAL Insurance Corporation (NIC) and Stanbic Bank converted a good chunk of the previously unfulfilled offers and bids into sales on Tuesday. Last week, Stanbic had the biggest bids of 2.9 million shares. On Tuesday, the bank sold 129,700 shares, realising sh34.3m in turnover, from 20,730 worth sh5.3m last week. Stanbic share inched up to sh265, from sh262.

NIC had bids of 2.2 million shares a week ago. It realised sh16.6m in turnover on Tuesday compared to sh1.2m last week. Shares sold also rose to 237,010, from 17,000. NIC had unfulfilled demand of 1.2 million shares. Market analysts say institutional demand remains high.

Total market turnover also rose to sh65.7m, from sh8.2m a week ago. Total shares traded were 437,500 from 343,773 last week. On the news of approved dividend, totaling about sh1.2b, New Vision sold 1,000 shares, for sh695,000 in turnover.

The All Share Index rose to 1,191.75 from 1, 86.99 points. In all, seven companies were active.

Uganda clinches Africa award
Wednesday, 3rd November, 2010
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BY BUSINESS WRITER

UGANDA has been shortlisted for a prestigious award at next week’s global AfricaCom Convention for telecom companies, in Cape Town, South Africa.

Uganda is represented by MTN Uganda, which has been shortlisted in the ‘Changing Lives Award’ for the MTN Easy Talk product, which allows ordinary subscribers to utilise mobile phone services without owning a handset. The ‘Easy Talk’ product allows users who cannot afford mobile phone handsets to make and receive calls, maintain an address book, and check their voice messages off call boxes using special SIM cards.

The product allows low-end users to make use of telecommunication services to enhance their lives or small business enterprises at very low cost, and is believed to have made a large impact in rural areas.

AfricaCom is the biggest annual telecoms conference in Africa that attracts over 4,000 delegates and over 40 telecoms operators and industry players from around the world.

Last year, Uganda scooped the award for Best Innovation, again with MTN’s Google SMS initiative.

Friend-a-Gorilla goes to London
Wednesday, 3rd November, 2010
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BY DAVID MUGABE

UGANDA has another opportunity to showcase its brilliant tourism gifts at the World Tourism Market (WTM), London which runs from November 8 to 11. The WTM is the single biggest global gathering of travel industry and promoters.

Sylvia Kalembe, a senior information official at Tourism Uganda, said the country will continue with the Friend-a-Gorilla campaign as its flagship product.

“We have more tourism products in Uganda, but we still claim the fact which is also a reality that more than half of the mountain gorillas are in Uganda,” said Kalembe.

Uganda has also appointed Amanda G-Marks, who reportedly owns one of the largest tour and travel agencies in the UK as its goodwill ambassador for tourism.

“We will still be strengthening our position because UK is our major source market. It is not proper that because it is our main market we should lay back,” said Kalembe.

Uganda received 35,834 tourists from UK last year. Arrivals have risen to close to 900,000 guests overall this year, as the global financial mess slackened.

How to unlock the potential of Uganda’s crafts sector
Wednesday, 3rd November, 2010
http://www.newvision.co.ug/NP/1288789471Untitled-7.jpg
Kigongo says the private sector supports efforts to promote a skilled workforce
By David Ssempijja

FOR any country seeking to enhance employment opportunities for her citizens, investing in education must be one of its priorities.

This is because education equips people with skills to create their own jobs or get employed in public or private sectors. However, for a nation to attain a population of employable human capital, it must direct enough resources to creating a model of education system that emphasises skills. This prepares the graduates to compete equally at the local and global job market fronts.

With such a system, students in secondary and tertiary institutions know what careers they intend to pursue early.

According to Prof. Augustus Nuwagaba, an internationally-renown poverty eradication consultant and the Reev Consult chief executive, there were hardly any student at tertiary level in 1950, 2,000 students in 1960 and there are 108,000 to date.

The Government has increased the education budget from sh350b in the 2001/02 financial year to sh1.3 trillion this financial year. Despite the above investments in the education sector, coupled with fast-growing tertiary enrolment levels, unemployment, especially among the youth, has continued to hit the roof.

The 2008/2009 World Bank’s report on Africa Development Indicators shows that the rate of youth unemployment, of people aged between 15 and 24 years, is 83% in Uganda.

The report reveals that 43% of sub-Saharan Africa’s population is between the ages of 0 and 14 years, with Uganda having the highest share at this age at 41%. Of the country’s 34 million people, 60% are youth, an age bracket that has the more educated people.

Where is the correct line?
James Mulwana, one of the oldest and well established local industrialists, attributes the increasing unemployment levels to lack of government attention to business, technical, vocational education and training.

“The need for blending vocational skills with Uganda’s education system is growing rapidly. Creating a knowledge and skills-based economy is a pre-requisite for the attainment of socio-economic development,” Mulwana says.

Mulwana was addressing a private sector conference on skills development organised by the Uganda National Chamber of Commerce and Industry and the Promotion of Employment Oriented Vocational and Technical Training project under GTZ in Kampala last week.

He argues that vocational education creates a competent and skilled workforce, which is essential for improving productivity and international competitiveness and hence an attractive investment climate.

“Despite the huge investment in education by the Government, there is no link between training institutions and the private sector. This has resulted in high unemployment due to the mismatch between the private sector human capital needs and the academic training institutions’ programmes,” Mulwana explains.

Nuwagaba advises the Government to prioritise tertiary education if the country is to reduce unemployment.

The Government promotes universal primary and secondary education.

Universal primary education has been taking an average of 65% share of the total recurrent education budget allocations over the years, with vocational education taking just 4% despite its significant role in curbing unemployment.

According to Nuwagaba, this scenario shows that Uganda’s education system is not human capital development oriented, yet education should focus on enhancing the learners’ skills to boost their productivity and employability. Uganda needs to borrow a leaf from countries like Singapore, Mauritius and Malaysia that have significantly reduced unemployment levels by promoting skills-lead education systems, experts advise.

The Malaysian government, for instance, has for decades supported private investment in her education sector by licensing only institutions that train a workforce aimed at achieving the national vision of transformation through vocational skills.

Light at the end of the tunnel
Olive Kigongo, the chamber president, is optimistic the private sector, under the Private Sector Forum, will spearhead a number of projects to create a robust skilled manpower needed to boost the country’s competitiveness globally.

Kicking-off his presidential campaigns at Kololo recently, President Yoweri Museveni revealed that the Government has introduced free vocational training and urged parents to embrace it. Most Ugandans shun vocational education, saying it is for failures or the poor.

Other vocational training opportunities are provided under the universal post-primary education training (UPPET) project, which is supported by the World Bank.

There are 600 of such private institutions and 144 public ones under the project, according to Fortunate Ahimbisibwe, the UPPET communications officer.

u.g boy

November 4th, 2010, 12:22 AM

The Chinese Tiger is coming, better look busy

By Daniel Kalinaki (email the author)

Posted Thursday, November 4 2010 at 00:00
IN SUMMARY

Not too long ago, a friend turned up late for a meeting and, as he placed his Blackberry on the table, apologised and said he did not have airtime to call and say he would be late.

“Couldn’t you send an email to say that you would be late,” someone at the meeting asked. “No,” said our friend. “You see, this is not a real Blackberry. It is a cheap Chinese phone that just looks like a Blackberry.”

We all took turns examining the phone. It looked like the real deal on the outside and the home screen but it was anything but – not surprising considering that, at Shs40,000, was almost 20 times cheaper than the real thing.

I recalled this small episode last week when I saw an item on CNN about a Chinese company that has set up shop in an Italian town and produces fine ‘Italian’ suits of almost similar quality but at half the price.

For a while, the ‘Made in China’ label was a warning sign to the buyer that while the product was probably cheaper, it could easily fall apart before one got home.
Not anymore. Low costs of production and imported western technology have combined to ensure that many iconic consumer products, from flat-screen televisions to the sleekest phones are now made in China.

There might be countries that still have a claim to pedigree and authenticity in the manufacture of certain products, like the Belgians with their chocolates, the Swiss with their watches and the Germans with their cars but the story of the Chinese tailor who has ‘taken over’ the ‘Made in Italy’ label shows how vulnerable some of these are.

Which brings us to China and Africa, a topic that has several schools of thought. One favoured by western intellectuals says that China is a new economic colonial master, extracting raw materials from the continent like the old imperial masters did, and selling back finished products to us.

Proponents of this view add that these cheap finished products are similar to the trinklets given to village chiefs and tribal kings before they were colonised and stifle local manufacturing growth on the continent.

They argue that China’s see-no-evil, hear-no-evil approach to the politics of resource-rich countries like Sudan and DR Congo will undermine efforts at democracy and accountability.

Another school, one preferred by African establishment types, says China’s emergence as a politico-economic power opens up new investment opportunities for Africa, especially in infrastructure, without the self-interest of conditionality favoured by the west.

A third school of thought argues that while China will become a dominant economic and political power, it will struggle to match the soft-power of culture and language that the former colonial masters in the west enjoy. (Just so you know, the Chinese are digging up bones along the Indian Ocean coastline of Africa to prove a theory that they were visiting these shores and doing business with us long before the west).

This discussion, of China’s coming to Africa, is mostly taking place in foreign capitals and in foreign media, influenced by many interests except that which should matter most – Africa’s.

Countries that will benefit from China’s foray into the continent will be those that will clearly articulate their own interests and seek points of convergence with those of China.

In Kenya, Angola and DR Congo, the governments there have signed up deals that will see the Chinese invest in productive infrastructure, such as the impressive highway under construction from Nairobi to Thika.

In Uganda, the Chinese built Namboole Stadium, an office tower for the foreign affairs ministry, and are currently building an office for the Presidency. If all we want from the Chinese are office towers then we’ve probably got what we want and should prepare to be eaten by the tiger.

FBW marks 15 years in construction
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By Zahra Abigaba (email the author)

Posted Thursday, November 4 2010 at 00:00
The Housing sector in Uganda has taken a new dimension with companies like FBW coming up with different and improved techniques to change the face of construction in Uganda.

This was during the celebration last week to mark 15 years of FBW existence in East Africa at Kabira Country Club. “In over 15 years, we have built up considerable expertise and experience within the region and have established a proven track record of successfully delivering construction projects within a wide range of sectors,” says Paul Moores, the managing director of FBW Uganda Ltd.

FBW is a UK based international consultancy established in 1995 to provide professional building services throughout East Africa and the wider region. “Our future plan is to set regional offices in Tanzania and Kenya by 2012. We have also opened up offices in Kigali-Rwanda and we are prepared to expand to other countries,” he explains.

Achievements
The FBW group has worked on various projects in East Africa which include hotels such as Common Wealth Resort, Lake Victoria and Kigali Mariotte Hotel in Rwanda. The schools include Kampala International School, Kampala Parent’s School, and International school of Uganda. Commercial buildings are; Kingdom Kampala which is a four year project soon to be launched, the British High Commission and Stone Town in Kabalagala. The residential houses are Chatsworth Lubowa and the Algerian Ambassador’s residence

Uganda still grapples with house deficit
http://www.monitor.co.ug/image/view/-/1046482/highRes/210395/-/maxw/600/-/l5q9lsz/-/homes002px.jpg
Janet Museveni launching the Sunset Apartments in Kiwatule. PHOTOS BY EPHRAIM KASOZI.

By Ephraim Kasozi (email the author)

Posted Thursday, November 4 2010 at 00:00
Despite the private investment in the housing industry, the costs of infrastructure are still high, which frustrates development of the sector, writes Ephraim Kasozi.

Government envisions a country without poverty where every citizen is able to read and write and where the sick get the right treatment in a timely manner. But the housing industry remains a challenge and the country needs about 30,000 housing units per year as players lament over high costs of infrastructure in the housing industry.

According to the Uganda household survey of 2002/2003, Uganda has a deficit of about 700,000 housing units. The housing problem mostly affects the urban areas with a deficit of about 150,000 units and Kampala alone needs about 100,000.

Housing sector
Ms Janet Museveni, the state minister of Karamoja Affairs, says that the challenge has a direct bearing on the household income of Ugandans granted that housing is a vehicle of economic growth and forms the foundation of social security. “Home ownership is an effective instrument for mobilisation of long term domestic savings,” she says.

She adds that in addressing itself to the housing problem, the government realised the relationship between the state of housing and poverty. Only with good decent houses, will the entire populace stay clear of communicable diseases.

Ms Museveni, was presiding over the opening of 268 Sunset Apartments in Kiwatule on Friday, November 29. The apartments were constructed by the National Housing and Construction Company. She commends players in the housing sector like NHCC for plans to make home ownership more widely available to Ugandans to enhance wealth and living standards.

The 268 housing units are part of the five year strategy by NHCC to construct 8,728 housing units of various income groups countrywide. However, State Minister for Finance in charge of Privatisation, Ms Lukia Chekamondo, says that government has committed itself towards construction of 4,000 units every year in order to reduce on the housing backlog. She adds that the initiative by private investors is a supplement to government.

High costs
Players in the sector lament that despite government efforts and private investment in the housing industry, the costs of infrastructure are still high which frustrates development of the sector.

The high costs of provision and maintenance of infrastructure services like roads, water, electricity and solid waste management has led to high costs of housing facilities. “We ask government to subsidise costs of infrastructure to enable people of all levels acquire decent housing. If such costs are minimised, it would help us build low cost housing units,” says Mr Muhamed Benomran, the acting chief executive officer of National Housing and Construction Company.

He warns that the high cost of infrastructure services would worsen the housing deficit that the country is suffering from as a result of the galloping population and high rates of rural-urban migration.
Mr Benomran says that 30 to 40 per cent of the construction costs are spent on infrastructure services, which makes the cost of a unit expensive.

Ms Chekamondo says that there has been provision of infrastructure services in estates developed by private sector leading to the selling of houses to the public at subsidised prices. “We are aware that while the formal private sector has ably responded to the housing demands of the high and middle income earners, the housing for the low income earners is still a challenge. This has resulted into mushrooming of squatter and informal settlements including slums,” she says.

House shortage
Mr Caleb Kakuyo, the chief commercial officer of NHCC says that the shortage of housing units in country is likely to hit eight million by the year 2020 if measures are not put in place to avert the imminent crisis to accelerate the pace of growth in the sector.

According to the National Housing and Construction Company, Uganda has a deficit of 550,000 housing units. A backlog of 160,000 lie in the urban centres with Kampala City having a deficit of 100,000 units.

Kakuyo warns that the current population growth of 3.3 per cent per year is likely to worsen the deficit due to rapid urbanisation. “Our population is projected to grow to 45 million by 2020. It is estimated that two decades down the road, Uganda will have a housing shortage of close to 8 million units of which 2.5 million will be in urban centers and one million in Kampala,” Mr Kabuyo explains. He adds that about 87 per cent of houses in rural areas are reportedly owner-occupied while 49 per cent are rented.

u.g boy

November 4th, 2010, 11:49 PM

Uganda improves in business-World Bank
Thursday, 4th November, 2010
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UGANDA has moved seven places up in doing business due to easy access to credit and efficient court systems, the World Bank has stated, reports Ibrahim Kasita.

East Africa’s third-largest economy is now ranked 122, up from 129, the bank said in a report entitled Doing Business 2011 report.

Over 183 countries are assessed and ranked according to the procedures of starting business, dealing with construction, registering property and getting credit.

The other criteria are protecting investors, paying taxes, trading across borders, enforcing contracts and closing business.

Uganda improved on parameters of getting credit, paying taxes and enforcing contracts.

On contracts, Uganda ranked 113 from the previous position of 118, and 46 up from position 109 last year in getting credit.

In paying taxes, Uganda was ranked 62 from the previous 63.

“Uganda enhanced access to credit by establishing a new private credit bureau,” the Bretton Woods Institution noted.

Maggie Kigozi, the Uganda Investment Authority (UIA) boss, yesterday said there had been improvements in land offices and e-tax, which propelled Uganda’s ranking.

“But we have a lot to do still,” she added.

“Uganda continues to improve the efficiency of its court system, greatly reducing the time to file and serve a claim.”

However, the report does not measure all aspects of the business environment that matter to firms and investors.

For example, it does not measure security, macroeconomic stability, corruption, skills level, or the strength of financial systems.

There was no change in registering property as Uganda remained ranked at 150 out o183 nations.

Other areas in which Uganda performed poorly include starting businesses, dealing in construction, protecting investors, trading across borders and closing business.

The report noted that globally, doing business remains easiest in the high-income economies of the Organisation of Economic Cooperation and Development (OECD) and most difficult in Sub-Saharan Africa and South Asia.

However, developing economies are increasingly active.

In the past year, 66% reformed business regulation, up from 34% six years ago.

Many of Africa’s economies made it easier to import and export, a trend driven in part by regional trade integration.

Kaguta road upgrade starts December
Thursday, 4th November, 2010
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http://www.newvision.co.ug/NP/1288864237iutbs.jpg
unra’s Dan Alinange

By Samuel Balagadde

THE Uganda National Roads Authority has awarded a contract to upgrade the 68km-Nyakahita-Kazo road (commonly known as Kaguta Road) to China Communications Construction Company. The project is worth sh134b.

The 75km-Kazo-Kamwenge section was awarded to China Railway Seventh Group Company at sh167b.

Dan Alinange, roads agency spokesperson, said work on the projects starts next month and would take two years to complete.

Seven contractors were pre-qualified for the work in May, but only the two successful ones had the best bids and the required competencies, he explained.

Alinange said projects would ease access to markets for farmers in the area and boost agricultural production and people’s livelihoods using the great potential for tourism and minerals.

“The road traverses land with high potential for agricultural production hence expected to boost the general livelihood of the population with easy transport to better market for their produce.

The project is funded by the African Development Bank with the Government. Work is expected to commence in December this year.

Brazilians to run Uganda-Kenya rail
Thursday, 4th November, 2010
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By Vision Reporter

RIFT Valley Railways Investments (RVR), the operator of the Kenya and Uganda railway lines, has signed a management and technical services agreement with América Latina Logística (ALL).

Under the deal, Logística, a leading Brazil-based rail group, will support RVR’s five-year rehabilitation and investment programme aimed at improving the safety and efficiency of rail operations across Kenya and Uganda, the firm said in a statement.

The first 24-month phase of the programme started this month, it added.

“Logística are leading rail operators, who have proven their mettle in turnaround scenarios, including the much-studied privatisation of Brazil’s national railway,” Brown Ondego, the RVR executive chairman, said.

América Latina Logística is the largest independent company of its kind in Latin America, where it operates railways and highways, serving clients across multiple countries.

Under the agreement, Logística will provide RVR with key management and operational staff and oversee the transfer of its technologies.

“ALL will provide us proprietary technologies, including proven rail management software systems,” said Ondego.

He noted that the agreement was structured so that Logística’s compensation is directly linked to specific operational and financial goals at RVR.

Logística is the best emerging-markets rail operator, “and in bringing them to Kenya and Uganda, RVR is looking forward to a repeat of the successes it has accumulated in the past decade since Brazil privatised its rail sector.”

Under the three-point rehabilitation programme, RVR will also replace worn-out rails in key areas.

According to the statement, the company is finalising its order for new rails with global suppliers.

The Brazilian firm will also kick-start a locomotive maintenance programme to improve reliability and enhance hauling capacity.

The third plank of the rehabilitation programme will see substantial investment in information technology systems throughout RVR, Ondego said.

Logística has previously worked with RVR to develop the railway’s five-year investment and rehabilitation plan.

Rift Valley Railways Investment is the consortium charged with operating the national railways of Kenya and Uganda under a 21-year concession.

It is comprised of three main shareholders; Citadel Capital with a 51% stake, Transcentury 34% and Bomi Holdings 15%.

The consortium has pledged to invest $250m in the restructuring of the railway system.

Tourism earnings hike to $400m
Thursday, 4th November, 2010
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By Joel Ogwang

UGANDA’S tourism industry has emerged as a vibrant source of foreign exchange, resulting in increased revenues from $100m to $400m over the last five years.

The number of tourists has risen from about 530, recorded in 2004 to one million by 2009, said Cuthbert Baguma, the Uganda Tourism Board executive director.

He was addressing stakeholders of Beyond The Sky Tours and Travel Bureau, a new player exploring the fertile Chinese travel and tour market, at Kampala Serena Hotel last week.

Baguma anticipated an increase in visits by the end of 2010, adding that most tourists from the UK, Germany, Netherlands and South Africa come to see mountain gorillas, lakes, rivers and national parks.

However, he was concerned by the indifference of Ugandans to appreciate the natural endowments in their country.

“Ugandans need to visit the many tourism sites in their midst. If foreigners can come all the way from Europe and Asia to appreciate our country, why not us?” Baguma said.

Baguma pointed to relative peace, aggressive marketing through promotions and trade fairs as the reasons for the increased visitations.

“We recently appointed Moses Kipsiro and Susan Kerunen as goodwill ambassadors to promote the local tourism industry. We believe they will be a key marketing tool for our country,” he said.

While Kipsiro was recognised for bagging two gold medals at the recent Commonwealth games in India, Kerunen, was selected for emerging the best African artiste in 2008 and 2009.

Baguma called for more investment in the hospitality sector.

RVR hires Brazilian management experts
http://www.monitor.co.ug/image/view/-/1047380/highRes/210671/-/maxw/600/-/gib2lnz/-/comm003pix.jpg
The Uganda-Kenya railway line is in dire need of rehabilitation. FILE PHOTO.
By Othman Semakula & Agencies (email the author)

Posted Friday, November 5 2010 at 00:00

Rift Valley Railways Investments, the operator of the Kenya – Uganda railway, have signed a management and technical services agreement with global rail group América Latina Logística (ALL).

Under the terms of the agreement, ALL will provide key support to RVRI’s five-year, three point rehabilitation and investment programme, designed to deliver efficiency of rail operations across Kenya and Uganda.

RVR owned by a consortium of companies including Citadel Capital, an equity firm, TransCentury of Kenya and Ugandan businessman Mr Charles Mbiire among others, recently signed a concession in Kampala that handed Citadel a majority share holding of 51 per cent in the 25-year concession.

The entry of Citadel pledged to rehabilitate the railway, which has suffered under neglect and old age. The Uganda and Kenya governments are working to see the over-100-year old railway gets to normal functionality as the two governments bid to improve transport in East Africa.

The development, which suggests that the rehabilitation is on line after signing the concession early in July, will be welcome news to the two governments.
The first 24-month phase of the programme began in November 2010.

In a press statement sent to Daily Monitor, Mr Brown Ondego, the executive chairman of RVRI, said: “I can think of no better partner with whom to embark on this important and ambitious programme than América Latina Logística,” adding: “We chose ALL because they have proven their mettle in turnaround scenarios, including the much-studied privatisation of Brazil’s national railway.”

The Brazilian firm is the largest independent company of its kind in Latin America, where it operates railways and highways serving clients across multiple countries.

Under the terms of the agreement, ALL will provide RVRI with key management and operational staff and will oversee the transfer of its technologies.

u.g boy

November 5th, 2010, 07:05 PM

China to Spend $350 Million Building Road From Ugandan Airport to Capital
By Fred Ojambo - Nov 5, 2010 10:11 AM GMT

China will invest $350 million to build and manage a toll road from Uganda’s Entebbe International Airport to the capital, Kampala, said Syda Bbumba, the East African country’s finance minister.

The new road will help ease congestion as the existing 36- kilometer (22-miles) link is regularly blocked with traffic, Bbumba told reporters today in Kampala, the capital. Talks on details about the project are continuing, she said.

China is a main source of foreign direct investment in Uganda, East Africa’s third-biggest economy, where commercially viable oil deposits have been discovered, according to the Uganda Investment Authority.

China will also offer Uganda $14.8 million in grants and loans for two other projects. A grant of $7.4 million will be spent on an office block that will house the Ugandan president and prime minister’s offices, Bbumba said. A second interest- free, 20-year loan will be used for “a project which is yet to be agreed upon by the two governments,” she said, without elaborating.

u.g boy

November 5th, 2010, 11:31 PM

UNRA’s plan for country roads
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(email the author)

Posted Saturday, November 6 2010 at 00:00
Uganda National Roads Authority (UNRA), a body created by Works and Transport Ministry, to take care of national roads has been accused of not meeting the public’s expectations of maintaining roads and constructing new ones across the country despite the big budget they run. Saturday Monitor reporter, Richard Wanambwa caught up with UNRA Executive Director, Eng. Peter Ssebanakitta to find out what the problem is. Below are excerpts:

Several million shillings budgeted for road construction and repairs remain unspent yet the national road network is rotting away. What is the cause of this, and what is the reason for not developing dual carriage roads in Uganda?
It is important for the general public to understand what is involved in starting road construction projects. Before a road is constructed and completed, it goes through many stages: appraisal, feasibility study, detailed design, tendering process and the physical construction of the road. On average, these five stages last three years, but can stretch to over five years.

There were no ready road designs for tendering when UNRA operations started in 2008. This means most of the study and design activities commenced after securing the money and there is no way UNRA would have legally spent all this money. The money was, however, committed to projects agreed on with the government and donor partners.
Regarding dual-carriageway or four-lane roads, UNRA has since 2008 been preparing a number of roads for expansion, including Kibuye- Busega-Mpigi, Kampala Northern Bypass, Kampala - Jinja and Kampala-Entebbe roads. Preparations are expected to be completed next year and construction will start thereafter. Dualing will increase the capacity of these roads and greatly reduce congestion.

What are UNRA’s plans for other major wide and durable highway construction projects across the country?
There are approximately 1,000km of roads all over the country currently under upgrading to tarmac. They include Soroti-Lira(123kms), Kabale-Kisoro (100km), Kampala-Gayaza-Zirobwe (42km) Matugga-Semuto-Kapeka road (42km), Kampala-Masaka-Mbarara (300km), Kawempe-Kafu road (166km), Kampala-Mityana (57km), Fort Portal-Bundibugyo (103km), and others.

Starting end of this year and beginning of next year, construction and reconstruction of over 1,300km of roads will commence. These include Mbarara-Kikagati (75km), Nyakahita-Ibanda-Fort Portal (208km), Gulu-Atiak-Nimule (104km), Vurra-Oraba (92km), Mbarara-Katuna (154km).

Others include Malaba/Busia-Bugiri (82km), Jinja-Kamuli (69km), Mukono-Katosi (72km), Mpigi-Maddu-Sembabule (135), Moroti-Nakapiripirit (90km), Ntungamo-Mirama Hills (37km), Ishaka-Kagamba (72km) and Soroti-Mbale-Tororo (140km). Most of these roads are in advanced stages of the preparation of necessary contracts, selection of contractors and buying land, while some of the contracts have been awarded.

Tell us about UNRA’s broad plans for decongesting the city and what could have happened to the proposed fly-over at Kibuye, Nakawa, Natete, etc.
Uganda National Roads Authority’s mandate is to manage the national roads network.

The national roads network refers to what used to be called “trunk roads” or highways that link districts and towns. UNRA’s mandate neither includes Kampala City roads nor municipality roads in other towns like Jinja and Mbarara. These are the responsibility of the city and municipal authorities.

UNRA is nonetheless aware of government plans to decongest the city such as introduction of a Bus Rapid Transport system (BRT) in the City, with support from the World Bank. Designs for flyovers at the Clock Tower and Zain round about are also being finalised with support from the Japanese government. We hope when these plans are implemented, the traffic jams at these critical junctions will improve. We are going to improve the junctions at Bugolobi and Nakulabye where National Roads connect with Kampala’s road network. We are currently looking for contractors and work is expected to start early next year.

The city roads have pot holes. Who is going to stand and own up to this mess?
Kampala city roads are primarily a responsibility of Kampala City Council (KCC). UNRA is only responsible for a few roads like Kampala (Kibuye)-Entebbe, Nsambya-Munyonyo, Kampala (Kubbiri)-Gayaza, Kampala (Kubbiri) – Kawempe, Kampala (Nakawa)-Mukono, Kampala Northern Bypass and Nakawa-Port Bell.

You will agree with me that the roads in the city managed by UNRA are all in good condition, except Gayaza and Silver Springs-Namboole roads, which are currently under reconstruction. UNRA tries as much as possible to promptly patch potholes developing on the roads under its charge. However, with the Kampala Capital City Authority bill having been passed, UNRA welcomes it and this means that we will be taking over some roads when the need arises, but the entire powers still remains with KCC. However, we can now tell Kampala residents that roads in the city are going to improve; previously there were all sorts of arguments on who controls the city roads.

Newspapers have found it opportune to use Kampala potholes photographs to make negative reflections of UNRA, partly because the media can hardly find “craters” or potholes on the roads we manage. My humble request to the media is to match UNRA stories with a typical UNRA road photograph such as that of Soroti-Lira, Jinja-Bugiri or Kampala-Gulu roads.

Janub

November 6th, 2010, 01:41 AM

http://www.bloomberg.com/news/2010-11-05/china-to-spend-350-million-building-road-from-ugandan-airport-to-capital.html

China will invest $350 million to build and manage a toll road from Uganda’s Entebbe International Airport to the capital, Kampala, said Syda Bbumba, the East African country’s finance minister.

The new road will help ease congestion as the existing 36- kilometer (22-miles) link is regularly blocked with traffic, Bbumba told reporters today in Kampala, the capital. Talks on details about the project are continuing, she said.

China is a main source of foreign direct investment in Uganda, East Africa’s third-biggest economy, where commercially viable oil deposits have been discovered, according to the Uganda Investment Authority.

China will also offer Uganda $14.8 million in grants and loans for two other projects. A grant of $7.4 million will be spent on an office block that will house the Ugandan president and prime minister’s offices, Bbumba said. A second interest- free, 20-year loan will be used for “a project which is yet to be agreed upon by the two governments,” she said, without elaborating.

This is brilliant! :cheers::banana:

Xusein

November 6th, 2010, 01:58 AM

Nice, nice, go Uganda!

Should have gone for rail though. :) But this is still very nice.

BUTEMBO21

November 6th, 2010, 07:48 AM

Good. But rail would have been much better.

u.g boy

November 6th, 2010, 04:09 PM

Nice, nice, go Uganda!

Should have gone for rail though. :) But this is still very nice.

uganda and kenya (rvr railways) have an agreement with a brzillian railway firm who will manage it for 5 years and upgrade stations and the trian . many new rail links are u/c like gulu -juba.

links :http://www.monitor.co.ug/Business/Commodities/-/688610/1047332/-/bumakm/-/

http://www.newvision.co.ug/D/8/220/737088

http://www.nation.co.ke/oped/Editorial/Railway%20experts%20welcome%20/-/440804/1047144/-/11rniyhz/-/

Ras Siyan

November 6th, 2010, 04:35 PM

Uganda remains best investment destination in East African region

(HornTrade) – The World Investment Report has again ranked Uganda the leading investment destination in East Africa for the fourth year running. The WIR report prepared by the United Nations Conference on Trade and Development (UNCTAD) simultaneously released globally; indicated that in the year 2009, Uganda’s Foreign Direct Investment was $799 million (Shs1.79 trillion) up from the $787 million (Shs1.45 trillion) recorded the previous year.

Investment Minister Aston Kajara while releasing the results of the WIR 2010 in Kampala yesterday, said: “I am happy to report that despite growing unease in the West about the global economic crisis, Uganda continued to witness growth in foreign direct investments.”
This increase, although still low, was the highest in the East African region, accounting for about 27 per cent of all FDI inflows into the region.

According to UNCTAD, the East African region comprises the Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Mauritius, Seychelles, Somalia and the United Republic of Tanzania.

The report states that developing and transition economies absorbed half of global FDI inflows in 2009 and accounted for a quarter of the global outflows. Their relative weight as both FDI destinations and sources is expected to increase further, as these economies lead the FDI recovery.

Secondly, FDI stock and assets continued to increase despite the impact of the crisis on Transnational Corporations’ sales and value added. According to the report, Uganda’s FDI stocks in the last decade increased by 83 per cent from $807 million (Shs1.8 trillion) to $4,988 billion (Shs 11,223 trillion).

“For instance, the African region is witnessing the rise of new geographical sources of FDI, in particular from developing Asia,” the report said.
In the just-concluded financial year, for example, the Uganda Investment Authority recorded significant planned investments from China and India, of approximately $276 million and $149 million respectively, and with commodity prices recovering, inward FDI is expected to rise even higher in 2010.

Other countries
In the region, Tanzania came second with $645 million, Kenya followed at $145 million, Rwanda recorded $119 million and Burundi recorded $19 million respectively. Africa’s inward FDI recorded $58,565 million compared to the global total ranking of $1.114 trillion.

Mr Kajara said as Uganda moves into the larger EAC common market, the government has put in place a number of interventions to support and strengthen both domestic investment and attract more FDI.

“Uganda continues to liberalise and promote both local and foreign investment, whilst at the same time strengthening its investment regulatory framework for various policy objectives,” Mr Kajara said.

On international investment agreements, Mr Kajara said: “Uganda continues to conclude new treaties, and has so far entered into 15 bilateral investment treaties, 11 double taxation treaties and nine international investment agreements with a number of countries”.

Go Uganda!

Xusein

November 6th, 2010, 06:12 PM

Nice news, I am heartened by that. :)

Kenguy

November 6th, 2010, 07:14 PM

Kenguy

November 6th, 2010, 07:20 PM

The best infrastructure news in Uganda at the moment. Together with the proposed bridge in Jinja. I'll try and follow up this project as much as I can. :)

tanzan

November 6th, 2010, 09:43 PM

great news...East Africa is really puting infrastructure a priority since this is one area that eases doing business. We are already witnessing joint East African infrastructure projects in rail,road,and energy.

u.g boy

November 7th, 2010, 12:10 PM

S. Korea to open embassy in Kampala

By Shoney Batenga (email the author)

Posted Sunday, November 7 2010 at 00:00
South Korean is scheduled to open an Embassy in Kampala next year to strengthen diplomatic and trade relations that have grown between the two countries. Vice President Gilbert Bukenya, in a meeting with the Vice President of the National Assembly of Korea, Mr Lee Sang Deuk , confirmed the plan. Prof. Bukenya asked the Korean government to support Uganda by transferring their technology and skills, especially in the textile industry.

“Uganda grows a lot of organic cotton, which is our advantage. Korea has the technology to transform this cotton to textiles and that is your advantage. Why don’t you set up joint ventures with Uganda firms in order to take advantage of tariff-free and tax-free trade between Uganda and the United States of America,” he said.

Mr Sang Deuk thanked Prof. Bulenya for the kind words to Korea and promised to send skilled people and assist in Technological transfer.

u.g boy

November 7th, 2010, 01:55 PM

u.g boy

November 7th, 2010, 10:15 PM

NGO builds Kapchorwa markets
Sunday, 7th November,
By Rashid Muzungyo
RESIDENTS of Kween and Kapchorwa districts are to benefit from the construction of roads and markets under the Community Agriculture Infrastructure Improvement Programme.

“By the end of the programme, residents will have access to markets offering good prices for their produce and easy access to educational and health facilities,” said Eng. Albert Anguria, the programme coordinator, recently.
He said the programme would be implemented in phases, adding that construction of markets had already started.

“The road works have also started and we believed that by the end of the project, our communities will spend less time travelling,” he said.

James Chekwok from Kapkwot, Ngenge sub-county in Kween district thanked the Government for establishing a market in the area.
“The markets will help us sell our products with much ease,” he said.

Kapchorwa LC5 chairman Nelson Chelimo commended the Government for initiating the programme, saying it would encourage local communities to appreciate the role of the Government in equitable delivery of services.

Kanungu gets its second commercial bank
Sunday, 7th November, 2010
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By Patson Baraire
KANUNGU district has got only its second commercial bank after PostBank opened its branch in the town council last week.

The branch opening came as a big relief to the banking population who have been travelling long distances or queuing at the only bank in district to access banking services.

During the week-long pre-opening and sensitisation programme, up to 800 clients opened up accounts, a reflection that they were hungry for the service.

The only bank in the district is located in Kihiihi town council, about 45km away.
Nuwamanya Muhambani, the PostBank area business manager, explained that the bank would provide tailor-made products bearing in mind a rural setting.

“We have in mind that there are several low income earners. We shall ensure that we encourage them so that they can also enjoy banking services,” Muhambani said.

u.g boy

November 8th, 2010, 06:42 PM

Uganda Says That Sugar Production Increases 3.7% at the Largest Plants
By Fred Ojambo - Nov 8, 2010 3:40 PM GMT
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Sugar production at Uganda’s three biggest plants rose 3.7 percent in the first nine months this year because of increased capacity, the Uganda Sugar Cane Technologists’ Association.

Production rose to 222,954.1 metric tons from 214,938.8 tons in the same period last year, Wilberforce Mubiru, the association’s secretariat manager, said today by e-mail from the capital, Kampala. The three factories account for about 98 percent of the country’s production, the association said.

Output dropped 8.7 percent at Kakira Sugar Works Ltd., the biggest producer, and 1.2 percent at Sugar Corp. of Uganda Ltd., he said. Kinyara Sugar Works Ltd., the second-biggest plant, increased production by almost 30 percent, he said.

Barclays in Shs 36bn rural banking project
Business
Written by Our Reporter
Sunday, 07 November 2010 16:11
FinScope Uganda, a countrywide survey on the demand and use of financial services, has discovered several loopholes in Uganda’s fight against poverty.

According to the study, only 21% of Ugandans own bank accounts in a formal or regulated financial institution, 40% use unregulated financial products that are open to fraud and several other risks while the remaining 39% have no access to financial services of any kind.

While owning a bank account is not an end in itself, there is empirical evidence that links access to financial services to a successful fight against poverty.

Here is how it starts. A country’s growth is dependent on the stock of physical and human capital as well as technological progress. Investment at individual, group or firm level can contribute to increase in human capital and technological progress.

Access to financial services enables households to save, build a history with financial providers and eventually borrow and invest in education (which contributes to human capital), start or expanding a business, or invest in agricultural inputs or new equipment—which contributes to physical capital and technological progress.

While lack of enough funds is a factor that limits access to financial services on the demand side, on the supply side, financial services providers, mainly banks, are grappling with high operation costs as well as high costs of capital, which effectively limits them from establishing branches in rural areas and creating special products for the rural poor.

On the regulatory side, there is also some degree of reluctance to initiate policy that stimulates rural penetration by financial services.

But amidst this maze of uncertainty and profit driven branch rollouts, some players are going out of their way to create special products geared towards the financial inclusion of the poor.

Recently, Barclays launched its ‘Banking on Change Project’—a three-year £10m (Shs 36.1 bn) commitment to use savings-led microfinance methodologies to recruit into formal banking about 500,000 people in 11 developing countries, among them Uganda.

In Uganda, the project targets to recruit up to 35,000 people. The programme was launched by Barclays Global Retail Banking Chief Executive, Anthony Jenkins, describing it as Barclays’ belief that “all people’s needs are constant irrespective of who they are.”

“They all want to improve their lives. They want better standards for themselves, their children and children’s children. This programme is Barclays’ way of creating financial inclusion for all,” he said.

To motivate savings, the bank has created a special feeless, but interest earning account for group savings. Product features include: free deposits, a free cheque book, free quarterly statement, free application pack, no monthly ledger fee, unlimited access to the money and free photographs.

Depending on the individual group’s account profile, the groups can borrow from the bank.
But Barclays knows that this is no mean task, which is why they have partnered with CARE International and Plan, who are already engaged in encouraging local communities to pool together their savings to make small loans available to one another.

This methodology is called the Village Savings and Loan Association (VSLA), being implemented together with West Nile Private Sector Development Promotion Centre (WENIPS), Uganda Women Efforts to Save Orphans (UWESO), South Eastern Private Sector Promotion Enterprise Ltd (SEPSPEL) and Iganga District Farmers Association (IDFA).

Altogether, the master plan is to establish up to 1,400 VSLAs across Uganda. With a maximum of 30 members per VSLA, the initiative is aimed at bringing together up to 40,000 individuals for the purposes of raising savings.

Once the savings have been collected, they shall be deposited at the special accounts opened by VSLAs at different Barclays branches across the country. So far, 287 VSLAs have been formed in Uganda and have saved Shs 110m in the first year of implementation.

VSLA groups are made up of between 15 and 30 economically active youth and adult members. These groups are based mainly on pre-existing traditional structures. The members are self-selected. Membership is open to both women and men.

According to Patrick Bogere Isabirye, chairperson of Ndimugezi Group, one of the prominent VSLAs in Iganga district, Barclays’ joining of the initiative will enable them grow their savings potential, but more importantly, will help them borrow and invest in acquiring agricultural inputs on credit and paying back in instalments, engaging in agro-processing and value addition, group marketing and establishing community accessible demonstration gardens, among other initiatives.

“We are sure if we maintain a good record with the bank, they can help us finance most of our dreams,” he said.

u.g boy

November 8th, 2010, 10:17 PM

MPs put Kigozi to task over Shs88b park deal
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By Mercy Nalugo (email the author)

Posted Tuesday, November 9 2010 at 00:00
Kampala

Parliament is investigating circumstances under which the Uganda Investment Authority (UIA) awarded a Shs88 billion contract to Spencon –Stirling to develop Kampala Industrial and Business Park at Namanve, Wakiso District.
MPs on the statutory authority and state enterprises committee yesterday tasked the UIA Executive Director, Dr Maggie Kigozi, to explain why she wrote to the World Bank in November last year giving Spencon the green light without clearance from the contracts committee.

“Spencon is being investigated by the special value for money audit and a lot of issues have been raised. The first phase contract was awarded to Spencon without a bill of quantities and there was a big variation in specification with a difference of about Shs3 billion,” the committee chairperson, Mr Reagan Okumu, said.

He added: “When the phase went on, we got a communication from the World Bank raising concerns about how the contracts were being awarded and the quality of work delivered by Spencon. They are now calling themselves Spencon Stirling. “If they never did good work why is Kigozi rushing to the WB to approve them again?” The first phase included the construction of the park’s office building whose quality and cost is under question.

The MP said Spencon has mismanaged a number of big projects in the country, citing the Northern bypass and the Awoja Bridge. According to the Contracts Committee chairperson, Mr Issa Mukasa, UIA was advised to stay the approval of Spencon until the ongoing value for money audit on park’s office building is complete.

Ms Kigozi, however, told the committee that she was advised by the UIA procurement specialist, Mr Ronald Kyobe, to approve Spencon since other bidders had pulled out leaving the company as the sole bidder. Katikamu North MP Ibrahim Byandala, however, advised that Ms Kigozi should reverse her decision so that other competitors are brought on board.

The committee agreed to write to the Auditor General to carry out a special audit of Namanve Industrial Park so as to guide them on how to handle the matter. Ms Kigozi was also handed over to the Criminal Investigations Directorate where she made a statement with four of her staff.

u.g boy

November 9th, 2010, 09:15 AM

Busia hospital gets face-lift
Monday, 8th November, 2010
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By Egesa Hajusu

THE Government has constructed six staff houses and rehabilitated a male ward in Busia district main hospital in Masafu. The project cost sh745m.

Handing over the facilities on Thursday, Dr. Richard Nduhura, the state minister for health, commended the hospital staff for its good management.

The health facility was upgraded to district hospital three years ago.
Nduhura urged the health officers to keep the facilities in good condition.

The hospital medical superintendent, Dr. Chris Oundo, expressed concern over the delay in the delivery of drugs by the National Medical Stores.

The body, he said, takes up to three months to deliver drugs to the hospital.

Nduhura promised to follow up the matter with the relevant authorities.
Odwori Mbooko, the chairman of the hospital management committee, said the district was understaffed and that the hospital had one doctor out of the seven needed.

Nduhura advised the district leadership to write to the health ministry for immediate intervention.

Uganda gets sh100b for prisons
Monday, 8th November, 2010
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By Patrick Jaramogi

IRELAND has committed euros 34m (about sh108b) for supporting education, justice, law and order, research and policy development in the water sectors.

Irish ambassador Kevin Kelly said part of the funds will be used in supporting food science and information technology.

He announced that his country was giving Uganda an additional euros 10m (about sh315m) for research in universities.

Kevin was addressing PhD researchers and senior lecturers at a workshop at the Economic Policy Research Centre at Makerere University on Wednesday.

“Universal Primary Education (UPE) is still faced with numerous challenges like inadequate classrooms and teachers as well as lack of instructional materials.

The Government also needs to address the high number of UPE drop-outs,” he said.

Kelly said they were constructing laboratories in 13 schools in Karamoja as well as building capacity in teacher training.

He said under the Justice, Law and Order Sector support, the funds would be channelled into construction of prisons.

Catalyst gets sh32b investment capital
Monday, 8th November, 2010
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By Sylvia Juuko

CATALYST Principal Partners, a Kenya-based private equity fund management firm, has received a 10m euro (about sh32.6b) cash injection from DEG, a German development finance group, to facilitate its investment in firms in East Africa.

Paul Kavuma, the firm’s boss, said Catalyst Fund One is a $100m private equity fund established by Catalyst Principal Partners to invest in high-growth emerging and medium-sized companies with experienced managers, seeking the next level of expansion.

DEG’s investment commitment is a positive signal by the German institution regarding the capability of the relatively new firm set up last year.

“This is a significant commitment of an important institutional investor in our fund. It is also a strong signal to other institutional investors that we have investors of worth.

We aim to raise over $100m for deployment and we are at the tail end. We have so far raised 65%,” Kavuma said in Kampala recently.

The fund will launch later in the year with about 65-70% of capital commitments.

He said Catalyst raises investment funds from high net worth individuals, pension funds, insurance firms and institutional investors globally and invests it in high-growth sectors.

The firm will be hunting for investment opportunities in sectors that include consumer goods and retail, financial and business services, industrial, manufacturing, processing, technology and telecommunications.

Uganda, Islamic Bank sign sh685b funding deal
Monday, 8th November, 2010
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done: Bbumba (right) and Ahmed Mohamed Ali, the IDB president, exchange the agreement documents as the First Lady, Janet Museveni, who officiated at the meeting, applauds them
By Mark Owor

THE Government has signed a $300m (about sh685.5b) deal with the Islamic Development Bank, under the Member Country Partnership Strategy, to finance infrastructure development in the country.

Finance minister Syda Bbumba said the money would fund projects in water, roads, rail and energy sectors.

“But the energy sector will be given priority to help people in agri-business process their produce according to international standards,” she added.

Bbumba was speaking at the sixth IDB Women’s Advisory Panel meeting at the Sheraton Kampala Hotel recently.

infrastructure development, enhancing of Agricultural Productivity and value addition, Promoting Private sector development and enhancing the Human Resource Base and Institutional Capacity.

“The MCPS is a concept that exploits the potentials and opportunities existing within the bank’s 56 member countries for the benefit of each other”, Bbumba said.

She said that, “This may be in form of technology transfer, cross-border investments, sharing of best practices, country experiences and others, with the IDB serving as a facilitator”.

Bbumba added that there are other IDB member countries that have undergone a similar transformation and Uganda can learn a lot from these countries as it aspiring to become a middle-income country.

u.g boy

November 9th, 2010, 05:17 PM

Nakumatt opens second 24 hr outlet in Uganda
KAMPALA, Uganda, Nov 9 - Nakumatt Holdings opened its second 24-hour outlet in Uganda on Tuesday, with a new branch in Bugolobi an up-market Kampala suburb and announced that it has pumped in USh2.7 billion for its expansion drive this year.

The opening of the new branch now boosts Nakumatt’s store tally to a strong 30-branch chain across Kenya, Uganda and Rwanda.

Hot on the opening of the second store in Uganda, Nakumatt is expected to open its third outlet at Bukoto later in November after acquiring two new locations.

Speaking during the opening ceremony, Nakumatt Holdings Managing Director Atul Shah said the supermarket’s expansion plans in Uganda were on course and apart from the two new outlets; new stores would be opened around Kampala in coming months.

“We have already identified the areas and we are working on the logistics of opening the new outlets,” Mr Shah explained.

He added that the two new stores in Uganda would employ 200 people directly and another 5,000 indirectly, mainly through suppliers and other business associates. Already Nakumatt Oasis, the chain’s Uganda flagship located at the Oasis Mall, employs over 200 people directly.

“Since Nakumatt came to Uganda in 2009, the supermarket has provided an important outlet for many Ugandan products not just in Uganda but in the wider East African region, especially farm products which is a huge boost to local farming and the economy as a whole,” he said.

He said that after opening the first 24-hour shopping experience in Uganda, Nakumatt had embarked on training its employees on customer care and other skills necessary for this type of operation. “We moved fast to train our people and now we are confident that we have enough skilled people in the retail sector to support our expansion plans.”

u.g boy

November 9th, 2010, 10:26 PM

Sh184b to improve Hoima Hospital
Tuesday, 9th November, 2010
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By Robert Atuhairwe

HOIMA Hospital is to use sh184b to improve facilities in the next 30 years, the hospital medical superintendent, Francis Muwanga, has said.

Muwanga recently unveiled the hospital’s plan focusing on infrastructure development and the acquisition of advanced medical equipment.

He told a stakeholders’ meeting at the Kolping Hotel in Hoima that under the plan, the hospital would build a new administration block, staff houses, roads, a children’s wing, bigger wards and a private wing. The project will be funded by the Government.

“We want to build wards that can accommodate 1,500 beds,” Muwanga explained.

He added that the new administrative block will have a shopping center and a bank.

Muwanga noted that the hospital would also set up an information and communication technology center to for staff to carry out research online.

Muwanga said the hospital had begun implementing some of the projects, adding that construction of staff houses started two months ago.

The hospital, which serves seven districts of Masindi, Kiboga, Kiryandongo, Buliisa, Kibaale, Kyankwanzi and Hoima, will also set up a maintenance workshop. The hospital consultant and planner, Joel Aita, said lacked land for expansion.

Speaking at the same function, the Hoima LC5 boss, George Bagonza, promised to help the hospital acquire the boma grounds land for expansion.

He said he had talked to the district council about the issue and most of the members welcomed the idea.

“We shall make sure this project turns into a reality. We shall have to relocate the ground to another place to pave way for development,” he said.

u.g boy

November 10th, 2010, 08:02 PM

Brazilians inject new life into Kenya-Uganda railway
Business
Written by Jeff Mbanga
Wednesday, 10 November 2010 18:13
The coming of Brazil’s main construction firm, America Latina Logistica, presents Rift Valley Railways with the most practical solution, so far, in its efforts to rebuild the Kenya-Uganda railway line.

America Latina Logistica (ALL) has signed an agreement with Rift Valley Railways Investment (Pty) – the consortium in charge of the railway line - to offer technical support by bringing on board staff with a track record of undertaking even bigger assignments.

In signing up ALL, RVR has revived hopes of a possible return of train services to the country’s oil wells in the western region.

The rail lines from Kampala- Kasese and Kampala to Northern Uganda that had been removed from the concession have since been reinstated with the discovery of oil in those areas.

Brown Odengo, the Executive Chairman of RVR, said that in ALL, they have partnered with the best. “I can think of no better partner with whom to embark on this important and ambitious programme than ALL,” he said in a company statement.

ALL are not strangers in the region. The Brazilians earlier helped draw up a five-year investment plan for RVR, although that plan has now been largely changed.

ALL will be responsible for ensuring the efficiency and safety of the railway line by applying its technical knowhow as the largest independent provider of logistics services in South America, and managers of railway services in Brazil and Argentina.

The deal is expected to boost the private sector’s confidence in RVR. Constrained by limited operational funds, the future of RVR was the subject of intense criticism from Uganda and Kenya when the company failed to take off after close to five years since winning the bid.

However, with the coming on board of Citadel Capital, a private equity firm listed on the Egyptian Stock Exchange, RVR underwent a complete overhaul.

At first, Sheltam, the South African company that won the 21-year concession to manage the railway line, was forced to sell some of its stake to Citadel early this year before completely exiting the consortium a few months later.

With Citadel now controlling 51% of RVR, Citadel is working on a $287 million expenditure programme for the railway line.

RVR appeared to have covered any risks that would have come out of the partnership with ALL, by pegging any compensation that the Brazilians might ask for to their work on the rails. According to the statement, “the agreement is structured so that ALL’s compensation is directly linked to specific operational and financial goals at RVRI.”

According to plans, RVR is expected to execute its strategy in a three-prong approach. First, RVR will replace the worn out rails on the 2,352 kilometre track. RVR is said to be finalizing its purchase orders of the rails.

After that, RVR will shift to refurbishing the locomotives. And third, the company will integrate an information technology network to ease the operation and cut down on costs.

Jim Mugunga, the spokesman of the Privatisation Unit, the body in charge of divesting government entities, said RVR’s strategy to turn around the railway line is satisfactory.

The company recently announced that after the completion of the railway line, transport costs in East Africa, presumed to be one of the highest in the world, could fall by about 35%. According to Citadel, transport to Uganda from Kenya presently costs more than $0.13 per ton/kilometre due, in large part, to heavy reliance on roads.

Kenyan retailers track shoppers to suburbs
Business
Written by Simon Musasizi
Wednesday, 10 November 2010 18:21
Nakumatt buys Payless supermarket chain at Shs 2.7bn
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Leading Kenyan supermarkets have taken their battle for shoppers to the outskirts of Kampala by opening new outlets and acquiring local retail stores in the suburbs.

Nakumatt, Kenya’s leading supermarket chain, which entered Uganda last year, has acquired Payless supermarkets in Bukoto and Bugolobi in a bid to expand its reach.

This comes a few months after Kenya’s second largest supermarket, Tuskys, opened shop in Kampala through acquisition of local retailers Half Price and Good Price supermarkets with four outlets in Kitintale, Ntinda, Nakulabye and Shauriyako.

Atul Shah, the managing director of Nakumatt, said the company had invested Shs 2.7 bn to acquire Payless businesses in Bugolobi and Bukoto.

The supermarket, which introduced 24-hour shopping to Kampala is expected to open its third outlet at Bukoto at the end of this month and four branches in Kampala within the course of the next two years.

“Our focus is to take services closer to the people,” Bernard Mutua, Nakumatt’s country manager said. “There is a lot of untapped potential in Kampala. The economy is vibrant and we are positioning ourselves to identify ourselves with the local market,” Mutua added.

Competitors join in

Uchumi, one of the oldest in this market (it has been operating at Garden City since 2002), is also not taking the expansion drive lightly.

“We have been looking at the expansion programme for the last three years. The way we are looking at this exercise is that it must be done in a more structured way,” Jeff Nchaga, Uchumi’s country manager told The Observer.

He added: “Kampala as a city is growing and as it grows, the needs of the consumers are increasing and also the need for structured services is increasing.”

Nchaga says Uchumi plans to open four branches within Kampala. Uchumi’s first outlet outside the city centre is expected to open to shoppers on Ggaba Road, opposite Quality Hill in Kabalagala early next year. During the year, Uchumi will also open three other branches in Gulu, Mbarara and Arua.

“We have come up with a nice expansion programme. The way we want to do it is to decongest the city. Instead of other people who are coming [into the business] decongesting the city, they are actually congesting it,” he said.

He added: “As you see, this Garden City highway is now a nightmare because Nakumatt came close to Uchumi. I don’t know what kind of investment policies we have [in this country] because I don’t see the need as to why a supermarket should come close to another while there are so many other areas where the services are required.”

Currently, accessing Garden City after 4pm is a nightmare -with business nearly hitting a slow lane as people try to avoid this congested part of the town.

“Both of us are losing business,” Nchaga revealed. This has forced both supermarkets to explore other options.

Expansion; killing off smaller players?

But the push to the suburbs appears to have caused worry among small home-grown outfits such as Kenjoy, Standard, Quality, and Super supermarkets that operate there. Some in the business have predicted more acquisitions as the small players opt out fearing to compete with the big names.

Most of the indigenous supermarkets close latest 10pm. As the big players who operate 24 hours seek to open shop nearby, their fate remains uncertain. Nchaga, however, says their expansion should not aim at killing existing local supermarkets.

“Expansion has to be done in a more structured way. You don’t have to rush things just to make yourself present in locations without looking at what services to offer.

We are going to offer those people all the services they are looking for—because when you go to a supermarket, you must be able to get everything that you are looking for, unless you are opening a convenient kind of shop, which we are not looking for. We are looking at moving in a place and offering customers all the services they have been looking for,” Nchaga said.

He added: “We have been in this market for long, people have appreciated our services and now we are ready to move on.” Nchaga, however, notes that their expansion does not come easily.

“The challenge we have had is the people putting up buildings with the lock-up kind of business as opposed to looking at big investors. You find a building in a very nice location but the way it has been designed is not appropriate for our kind of business.

At the same time, they don’t look at parking, yet what we look at before opening a supermarket is parking for the customers. I don’t want to open a supermarket and my customers are parking on the roadside,” Nchaga said.

He added: “Our plan was to open the Kabalagala branch before the end of the year but because of the construction hiccups, the guys are not ready. We are now looking at opening during the first quarter of next year

u.g boy

November 10th, 2010, 09:14 PM

Uganda urged to develop mobile network
Tuesday, 9th November, 2010
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By Paul Tentena

UGANDAN software developers and mobile technology professionals have been urged to develop a network that will lead to the growth of mobile technology in the country.

Jari Tammisto, the President of Mobile Monday International, said a well developed mobile technology network will spur rural growth for the country.
He said this while launching the Mobile 4 Development project that will run under the theme “Simple, low-cost Solutions, the gist of M4D” at the Nyonyi Gardens in Kololo, Kampala on Monday.

Mobile Monday is a global network of mobile industry professionals, visionaries, developers and entrepreneurs in over 100 cities around the world.

Each city chapter discusses issues specific to the local needs in monthly forums.

“You should develop a network for mobile technology development in Uganda, just like we are developing one across the world,” Tammisto said.
He also urged small mobile technology operators to work with bigger operators to survive in the industry.

Olga Morawczynski, the financial literacy manager of AppLab Uganda, said the development of a sound mobile money technology network will help rural Ugandans to access money services within a 5km distance.

She added that the introduction of new mobile technologies like the FinLit project will help to enhance access to banking services in the rural communities by taking money to the village with the use of mobile money.

“This project will increase usage of such services through a targeted financial literacy strategy that utilizes mobile money agents, given the fact that 82% of Ugandans don’t have bank accounts,” stressed Morawczynski.

Matt Berg, the ICT director of Millennium Village Projects of the Earth Institute of Columbia University, indicated that mobile networks cover 90% of the world population.

He said new technologies like Child Count+ that is created under the framework of RapidSMS will reduce preventable diseases in the poorest villages of Africa through continuous monitoring.

“It is grounded in a network of community health workers that partner to improve health and nutrition in impoverished areas. It will also monitor over 100,000 pregnant mothers and children under five,” said Berg.

West Nile gets 120-tonne ferry
Tuesday, 9th November, 2010
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By Samuel Balagadde

THE Obongi-Shinyanya route on River Nile in West Nile will soon get a new ferry. This comes after the roads agency contracted Dutch firm, Damen Shipyard, to assemble a 120-tonne ferry.

The work that started this month is expected to take two weeks, according to Eng. Nkya Kiiza, the Uganda National Roads Authority mechanical services manager.

“The ferry will have the capacity to carrying six loaded trucks and about 100 passengers,” he said, adding that the completion of the ferry would be a milestone for the West Nile communities as it will reduce transport fees and time spent on the way.

Transport to Kitgum and Southern Sudan will also be eased. “Instead of taking the Moyo-Larupi route, it will pass through Arua to Kukulinga, then back to Obongi and cross to Adjumani.”

23 firms in race for top investor crown
Tuesday, 9th November, 2010
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By David Ssempija

THE Uganda Investment Authority (UIA) has started evaluating firms as it prepares to recognise outstanding investors at the annual Investor of Year award ceremony scheduled for December 10.

“The competition will involve about 23 firms from agro-processing, building and construction, real estate development, tourism, services and information communication technology,” explained Dr. Maggie Kigozi, the UIA boss.

The process, which started on Monday this week, ends on November 22.

Kigozi said the competing companies are being evaluated on the level of investment, use of local input, innovation, evidence of quality control, environmental consideration and competitiveness.

Others are the level of research, the formation of backward and forward linkages and generation of new earnings.

Pharmaceutical firm Abacus Parenteral Drugs are last year’s overall winners.

Bujagali power project enters final phase
Tuesday, 9th November, 2010
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on course: An aerial view of the 250MW Bujagali hydro-power project
By ibrahim kasita

ENGINEERS at the 250MW Bujagali hydro-power project are preparing to close the right channel of River Nile as the multi-million dollar project moves to the final stages of completion.

The fast-flowing water in the river channel will be blocked using two coffer dams. One dam will be at the upstream end of Dumbell Island, separating the right and left channel of the Nile and the other one at the downstream end, a kilometre away.

A coffer dam is a structure built across a river, using heavy rocks that cannot be easily washed away by the strong current, and is covered by water-impenetrable murram.

The blockage will also mark the start of the disappearance of the much-cherished Bujagali falls as water will start rising up to create a water head to drive the turbines to produce electricity.

The water between the two coffer dams will be pumped out, emptying the whole right river channel so that the concrete structure can be built on the dry river bed.

“After this date, it will not be possible to travel down the river past the project site. For safety reasons, we advise all users to exit the river upstream of the diversion area,” Bill Groth, the Bujagali Energy construction manager, said.

“This is an important phase because the powerhouse is also approaching completion. We expect to start generation of 50MW in October 2011.”

The water flow will be diverted and continue to flow through special gateways in the newly-built powerhouse to the left channel of Dumbell Island, which is in the final stages of completion.

The left channel of the river has for the past three years undergone the same procedures after the water was diverted to the right channel of River Nile.

However, hundreds of fisher¬men and rafting businessmen will lose their source of income when the blockage starts on February 15, 2011.

The right channel of River Nile will be temporary blocked as the 250MW Bujagali hydro-power project enters its final stages of completion.

After the first unit goes on line, the remaining four units of 50MW each will be commissioned consecutively.

The Bujagali power project is expected to be fully commissioned by April 2012, 36 months after work started.

u.g boy

November 10th, 2010, 10:27 PM

Uganda to open embassy in South Korea
Wednesday, 10th November, 2010
By vision reporter

UGANDA and South Korea are to establish embassies in Kampala and Seoul by next year to strengthen diplomatic operations of the two countries and facilitate the increasing socio–economic ties between their peoples.

This was agreed during a recent meeting between Uganda’s Vice-President Prof. Gilbert Bukenya and Lee Sang Deuk, the President of the National Assembly of Korea, at the Congress House in Seoul in Korea.

Bukenya, according to a release from his office, said establishing diplomatic relations between the two countries would increase collaboration both at Government and business levels.

He observed that currently, Uganda’s mission serving Korea is in Japan, while Korea’s embassy is in Kenya, which, he said, makes it expensive and inconveniencing to persons travelling to the countries.

Bukenya hailed the support from the Korea International Development Agency, which includes training of Ugandans in leadership and modern organic production.

He also asked Korea to support Uganda by transferring their technology and skills to Uganda, especially in the textile industry.

Deuk promised that his country would send technocrats to Uganda.
The Vice-President, who was in Korea for the G20 summit, returned on Tuesday.

Uganda-Sudan trade shaky
Wednesday, 10th November, 2010
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BY DAVID MUGABE

TRADERS and employees currently plying their trade in the Southern Sudan should co-opt risk assessment in their business plans to cushion them during uncertain times.

The world is watching with bated breath whether the January 9, 2011 referendum in Southern Sudan will emerge peacefully. Today (Thursday) is 59 days to a land mark political decision that will determine whether Southern Sudan secedes from the North.

Ben Naturinda, deputy executive director of Uganda Exports Promotion Board (UEPB), the lead export agency said businesses have to take the upper hand in putting safeguards for their businesses.

“We don’t want to speculate that there will be war in S. Sudan but the critical thing is that there are still processes to try to streamline trade between the two countries,” said Naturinda. Naturinda said for business entities, it is important to do things cautiously and understand the situation to mitigate all the levels of risk.

“Don’t operate business as usual, those involved in the business must take the first step,” said Naturinda. He advised that firms must undertake risk assessments and how to absorb it and employ ingenious methods of work.

For instance, if a firm has been using direct entry, they can appoint local distributors. If the political decision is peaceful, then Uganda can have a continuous assured exports market, but should war erupt, it will have serious ramifications on the country’s exports revenue base. Already, Roofings, a leading steel manufacturer in the region is registering a decline in sales.

“It is affecting us, purchases have gone down, people are not stocking like they used to do waiting for a windfall like a fluctuations in the dollar. We are a bit worried,” said Stuart Mwesigwa, Roofings business development manager.

Roofings exports about $1.4m worth of building materials to Southern Sudan. But Mwesigwa says his company has resorted to move their outlets nearer the border so buyers can access the products.

For about four years now, southern Sudan is Uganda’s biggest destination for exports. Exports have risen from $50.5m in 2005 to $184m in 2009. But the turning point was in 2008 when S. Sudan emerged as the biggest destination of Uganda’s exports with $246m.

Now these impressive trade statistics are under real threat should the political climate turn violent. The 2005 Comprehensive Peace Agreement (CPA) ended a 21-year civil war between north and south, which left an estimated 2 million people dead. Since then relative peace has emerged ushering in a new wave of business optimism.

Also, several Ugandans have sought employment in the business lucrative region. The Kampala City Traders Association (KACITA) chairman, Everest Kayondo said a six man committee comprising three from Uganda and another three from Southern Sudan will meet on November 28, to discuss security matters as well as other trade complaints during the referendum for Ugandans especially.

“Some of our traders are worried and are saying they will keep their stocks low and it is already affecting their businesses,” said Kayondo. Anther meeting was held last week between the southern Sudan minister of commerce and Uganda’s trade minister but it was mainly to resolve past conflicts arising from traders who had lost their merchandise.

The trading community in southern Sudan according to Kayondo consists of 1.2 million Ugandans. Should war erupt in Southern Sudan and impact on trade, it will lend credence to the argument that political climates will continue to play a role on the sustainability of business going forward.

“Capital is a coward, it does not go where it is not safe,” said one trade analyst. More than 50% of Uganda’s exports mainly end up in Africa. The political safety of the markets is therefore very sacred. Some sectors like the services would be blessed because as it happened in the two decades civil war, most southern Sudanese flocked Uganda for education and the sector flourished.

Destinations like the European Union takes up just 21.9% and are shrinking while North America takes up 2.4%. Exports to the EAC alone was $397m or 25% of the total merchandise exports that stood at $1.56b.

Turkey seeks more investments in Uganda
Wednesday, 10th November, 2010
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http://www.newvision.co.ug/NP/1289398885Untitled-6-copy.jpg
TURKISH DELEGATION: Minister of State for Investments, Aston Kajara (2nd right) with Turkish team. Right is Ejder Kilic, the Chairman Nile Humanitarian Developement Agency. Left is Timir Tigdemir and businessman Nihat (2nd left)
BY DAVID SSEMPIJJA

UGANDA is one of the African states where Turkey is undertaking a strategic move to establish key offshore investments.

Education was Turkey’s first investment in Uganda followed by the opening of the Turkish Airlines in June this year. Turkish foreign ministry made a declaration in 2005 to turn Africa into the country’s investment hub and her airline’s most valuable destination.

“Uganda is among the African countries that inspire a lot of investor confidence, we shall be privileged to operate in an economy growing at a rate of 6%, the opening of this airline here is a strategic move to boost investment between Uganda and Turkey ” the airline director for the Uganda office Orhan Subay, said recently . Subay’s promises come to fruition as the two countries bilateral talks begin to identify investment opportunities.

This week, Turkish deputy prime minister, Bulent Arinc and Timir Tigdemir, the Confederation of Businessmen and Industrialists of Turkey deputy secretary general for Middle East and African held investment talks with local ministers of finance and investment, Syda Bumba and Aston Kajara, respectively plus officers from Uganda Investment Authority. “Issues we discussed largely centred on the three day Uganda-Turkey Trade and Investment forum to be held in Kampala on November 29,” said Tigdemir.

A delegation of 30 investors from Turkey will participate, meet and discuss with their Ugandan counterparts matters of what to invest in when and how. Turkey is targeting opportunities like agro-processing, general construction, textile and garments industry, tourism, raw materials like cotton, Electrical appliances, and household items.

u.g boy

November 12th, 2010, 09:08 AM

Kira villages get water tanks
Thursday, 11th November, 2010
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KIKUTUKWE, Kiwologoma and Bulindo villages in Kira town council, Wakiso district, have received water tanks worth over sh3m. The Rotary Club of La Jolla Golden Triangle, San Diego, in collaboration with Sunrise Rotary Club of Kampala, donated the tanks.

Joseph Kitamirike, the president of Sunrise Rotary Club, said the villages faced severe shortages of safe water.

“The tanks, with a capacity of 1,500 litres each, will help residents harvest clean safe water,” he said. Debora Lule, one of the beneficiaries, said they have been drinking water from swamps. “We knew the water was contaminated but what could we do?” she asked.

Globally, about 2.3 billion people suffer from diseases linked to dirty water each year.

PTA Bank launches sh750b eurobond
Thursday, 11th November, 2010
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By Sylvia Juuko

THE Eastern and Southern African Trade and Development Bank (PTA Bank) has launched a $300m Eurobond issue to meet funding requirements, setting the stage for Africa’s new wave of debt issuances.

The Eurobond was structured and placed in the London market by Standard Bank and HSBC, the Hong Kong headquartered global bank, PTA Bank said in a statement.

The Eurobond started trading at the Luxembourg Stock Exchange last Friday following conclusion of the deal.

“The $300m Eurobond issue is the first of its kind from an East African issuer and the first Eurobond issue in sub-Saharan Africa since 2007.

“The issue, which is listed on the Luxembourg Stock Exchange, forms part of a Ksh80b ($1b) Euro medium-term note programme under which bonds will be issued in tranches over the coming years,” the bank explained. The Eurobond’s maturity date is January 9, 2016.

PTA Bank has a footprint in 17 African countries, including Uganda, and finances many projects and trade activities.

Dr. Michael Gondwe, explained that the rationale for the $1b programme was to diversify the bank’s resource base and to raise funding to meet the financing needs of small-and-medium size enterprises in eastern and southern Africa.

“The international bond issue marks an important milestone in the bank’s resource mobilisation programme and is the first step in the implementation of a long-term strategy of engagement with international financial markets to access long-term capital,” Gondwe said.

u.g boy

November 14th, 2010, 10:28 PM

Heavy trucks banned from city centre
Sunday, 14th November, 2010
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A fuel tanker heads straight to the city centre instead of taking the turn (left) onto the Northern By-Pass at Bweyogerere
By Anne Mugisa, Taddeo Bwambale and Andante Okanya

HEAVY trucks to DR Congo, Southern Sudan, Rwanda, Burundi and Tanzania have been banned from going through Kampala city centre.

The directive by the Uganda Revenue Authority (URA) takes effect on November 25. In a statement issued over the weekend, URA said transit cargo trucks will be diverted to the Northern By-Pass at Namboole stadium.

The Kampala Northern By-Pass is a 21km road skirting the city from Bweyogerere to Busega.

URA spokesperson Peter Kaujju said the new measure will reduce traffic congestion in the city and minimise the dumping of transit goods on the local market.

“Many goods, especially fuel, have been dumped in the city. The dumping of these goods causes unfair competition,” Kaujju said.

He said URA and the Police will enforce the directive. “Any driver who enters the city will be penalised,” Kaujju warned.

Most truck drivers as well other motorists and Kampala residents support the directive.

The chairman of the Regional Lorry Driver Association, Bayern Kinene, said: “This is good. There is no reason why the trucks should clog the roads in the city,” Kinene commented.

“We need to learn from other organised places like Rwanda. Trucks there off-load at container depots and those that must enter the city (Kigali) do so with prior permission,” Kinene added yesterday.

He confirmed that a lot of goods are dumped in Kampala. “Some of the dumping is aided by some URA employees. We had talked to URA and they had seemed reluctant, but now they have started acting,” said Kinene.

The chairman of the Uganda National Transporters Alliance, William Busulwa suggested that the ban be extended to other trucks that bring merchandise to Kampala.

He said in Rwanda, big trucks offload cargo at designated container depots. Smaller vehicles then transport the goods to their final destination in the city.

Busulwa said the problems are aggravated by companies which only transport their goods during daytime. As a result, trucks park outside the city at nightfall and enter the city at once in the morning, choking roads. He also suggested construction of weighbridges to stop overloaded vehicles, which damage roads and cause accidents.

More public reaction:
Uganda should borrow a leaf from Kenya, where trucks of more than five tonnes are not allowed in the cities.
John Sseryazi
(boda boda rider, Jinja Road)

Many times, these trucks get stranded after developing mechanical faults and cause accidents in the city.
Wilber Jagwe (boda boda rider, Kampala Road)

Heavy trucks block traffic in the city centre and affect our business, as passengers choose to board from other areas because they do not want to delay on the road.
Ismail Sewava (taxi driver, City Square)

Restricting heavy trucks alone is not enough to reduce traffic. Our roads are narrow, yet motorists load and offload imported goods and exports.
Kassim Andrua (booking officer, Arua park)

Good idea, but the authorities must consider our fate. We depend on those trucks. Even those travelling to other countries normally stop here and offload some goods. Sulaiman Semanda (casual labourer, William Street)

These trucks could alternatively be allowed to use the city roads only at night. The Government should also gazette offloading areas outside the city.
Abdul Mugisha (truck guide, William Street)

The Government should construct other bypass roads. Taxis should also be prevented from parking in congested city areas.
Tom Rimenyande (Congolese truck driver)

This saves us from rude and hostile truck drivers who block shops. Justine Babirye (trader, Ben Kiwanuka Street)

All heavy trucks should be restricted from entering particular areas of the city. They damage roads and property.
Edith Naiga (trader, Kikuubo lane)

No problem using the Northern By-pass, but that area is insecure, especially at night, yet we carry goods worth millions of shillings. There is need for secure parking yards along the by-pass where we can stop if we need to service our trucks.
Mohammed Salim (Somali long distance truck driver)

Our fear is that there will be a lot of thieves on this road. How is the Government going to provide security for us? Hussein Kalema (resident, Bwaise)

I drive on the Northern By-Pass. It urgently needs lights and other services like parking bays.
Godfrey Kabunga (private motorist)
^^^^
good move it will help decongestant Kampala .

PAC orders Prime Minister to recover sh170m hoes cash
Sunday, 14th November, 2010
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By Catherine Bekunda

THE parliamentary public accounts committee has directed the Office of the Prime Minister to recover sh174m from Crocodile Tool Company Ltd.

The money was meant for the purchase of hoes for internally displaced people in northern Uganda in 2006.

The committee was shocked to learn that the money was paid in anticipation that the farm equipment would be supplied, but to date, the items have not been delivered.

“We feared that if we did not pay out this money it would be taken back to the consolidated fund where it would be hard for us to get it after the close of the financial year,” confessed Cedrick Mugume, an accountant in the Prime Minister’s office.

The committee was further shocked to learn that there were no performance bonds signed with the suppliers.

“How do you keep money in unsafe hands? The hands of a foreigner whose character you don’t know. What was your motive?” wondered committee vice-chairperson Oduman Okello (FDC).

PAC legal counsel Tom Kazibwe (NRM) noted that Mugume was responsible for uttering fabricated accounts, an offence that attracts a fine of sh20m, or 12 years imprisonment.

Oyam Woman MP Beatrice Lagada also lashed out at the officials for supplying seeds to the people of northern Uganda when the planting season had ended. The seeds were delivered in December, yet the planting seasons are in March and July.

The committee also maintained that Prime Minister Apolo Nsibambi must explain why sh1.7b meant for the purchase of oxploughs was diverted to purchase hoes.

Towns advised on waste management
Sunday, 14th November, 2010
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By Chris Mugasha

THE deputy town clerk for Gemert-Bakel municipality in the Netherlands has called for communal-based environmental projects if the global environmental challenges are to be addressed.

Ad van de Voort said local councils, especially in urban areas, should come up with environmental programmes, which are for the people and owned by the people.

De Voort said it was possible to have a clean environment if the communities are involved in waste management.

He was last Wednesday leading councillors, mayors and technical staff from Gemert-Bakel, who were in Bushenyi to evaluate the impact of a waste management project they have injected in about sh150m since 2008.

The project promotes the separation of bio-degradable and non-degradable waste at household level, according to the Bushenyi municipality acting town clerk, Frank Byabagambi.

De Voort argued that local councils should sensitise the public and provide people with materials such as garbage skips to enable them separate the waste.

He said people should also be educated about the benefits of a clean environment.

“You need to change the citizens’ mind first if we are to have a clean environment globally,” he advised.

De Voort said it took his country 25 years to get a solution to waste disposal, adding that it might take a lot more years for the developing countries.

Byabagambi said Bushenyi was developing two separate waste dumping centres in the municipality.

He explained that one of the sites, Nyaruzinga, would be used for biodegradable waste, while the other one at Nyakabirizi trading centre would receive non-degradable waste.

Byabagambi added that since the community started using the project, there was improvement in hygiene.

He further noted that limited resources, especially land where to dump the waste, were among the challenges facing the municipality.

Ugandan film industry taking quantum leap
Sunday, 14th November, 2010
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http://www.newvision.co.ug/NP/1289752975zulu.jpg
CELEBRITIES? Actors Paul Mbogo and Tony Katabula
By Duncan Kushaba

THERE has been debate on whether the Ugandan film industry is going anywhere. But after watching Nafulu, a Patrick Sekyaya production, I can confidently say there is big hope for our industry, especially if people like Sekyaya, keep their foot on the accelerator.

Nafulu, which premiered at the National Theatre last Friday, is a movie about a native African tribe somewhere far off, with its own cultural values, reinforced by village elders and the Bakebezi.

Among the things Nafulu tackles is impotence and female genital mutilation. Basically, the movie tackles vices like the abuse of human rights at the hands of unnecessary cultural beliefs, thus its assertion that: “Thousands of Africans have their human rights abused on grounds of culture.”

Shot in Zilobwe village, Luwero district, Nafulu, stars Patrick Sekyaya, who also writes and directs the story, Tony Katabula, Paul Mbogo and Barbara Nandutu.

Produced by Alvin Kasule, the movie’s premiere was graced mostly by a generous turn up of royalty from the Buganda Kingdom.

The entourage was led by the Kabaka’s sister, Princess Diana Teyegala, who was the guest of honour. Her urbanite touch to cultural outfit could not be missed.

Clad in a yellowish brown gomesi and black short-heeled shoes, she was flanked by her bodyguards and equally beautiful mistresses in white long dresses. These, plus the event’s ushers, turned several people’s heads, especially during a cocktail that preceded the premiere with lots of soft drinks, edibles and cultural dances.

But, much as the guest of honour made it on time at 7:00pm, Patrick Sekyaya, the director, arrived more than an hour late. Somebody tell Sekyaya it is rude to make ladies wait, especially if that lady is a princess of a major kingdom.

However, we can always forgive him since his other movie, The Origin of Sin, just weeks ago, won him a major film award in California.

Banks to fork out sh25b by 2013
Sunday, 14th November, 2010
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By Sylvia Juuko
THE banking sector is gearing up for consolidation, following the Central Bank’s decision to raise minimum capital requirement to sh25b by March 2013.

The rise in capital requirement is a key regulatory reform in the revised Financial Institutions Act 2004 that the Bank of Uganda recommended to the finance ministry.

Other key reforms include broadening the scope of permissible non-bank activities, harmonisation of regulations under the East African Community (EAC) framework and addressing challenges from global integration of finance.

Governor Tumusiime Mutebile announced recently that the commercial banks’ minimum capital would go up in the next five years.

However, new banks applying for a license will fork out sh25b to operate in Uganda.

“Any new bank applying for a license will have to come up with sh25b. The existing banks have been given two stages. They are required to upgrade capital requirements to sh10b by March 2011, and to sh25b by March 2013,” said Juma Walusimbi, the Central Bank spokesperson.

He said instruments to effect the requirement had already been signed by the finance minister Syda Bbumba and published in the Uganda Gazette.

Uganda has over 22 commercial banks, following the lifting of the moratorium against licensing new banks in 2005.

Owing to the changing global and local environment, the need to make revisions in the capital adequacy requirements to cover risks is more urgent than ever before.

The increase in capital is motivated by the need to align Uganda’s capital requirements with those of the partners in the EAC.

Kenya is expected to raise its minimum capital requirement to Ksh1b (about sh25.7b), which is nearly $13m, by 2012.

The Bank of Tanzania on the other hand requires commercial banks starting capital at Tsh6.6b (about sh9.67b).
It also asks the banks to maintain a core capital of 10% minimum of risk weighted assets and capital to risk weighted assets of 12%.

However, industry players cautioned that the new capital amounts were still low and would make huge transactions impossible to undertake.

“While we welcome the move to increase capital, I think it’s still very low. This means that with sh25b, banks can only undertake a transaction that is about 25% of this capital which is limiting in terms of size of transactions that banks can undertake,” a banker noted.

“It’s right to increase the capital gradually, but it should shoot up to a higher level of sh50b to have transactions that can contribute to transforming the economy,” another industry player suggested.

Banking officials predicted that there will be more pressure on new entrants to consider consolidation.

“A lot of capital to start the new banks has been eroded by losses because getting market share in Uganda is not easy. The pressure will be more on the new entrants,” said the official.

Sony targets modern families with 3D products
Sunday, 14th November, 2010
http://www.newvision.co.ug/NP/1289736814coo.jpg
Miura (second left) and regional head of sales Dinakaran Munaswamy unveil the 3D Sony TV in Nairobi last week
By Vision Reporter
SONY Gulf FZE, a subsidiary of the Japan-based Sony Corporation, is targeting the East African modern families with its latest most advanced home technology launched in Nairobi last week.

The 3D (Three-dimension)-enabled TV products offer wealthy and modern families a combination of the latest technology and entertainment at the highest levels, with clear and bigger TV objects in movies, music, sport and play station games.

Sony officials explained that the 3D technology offers depth, subtlety and detail of the TV objects to totally engage the viewer.

“People already like it. We hope the same will happen in the East African,” Osamu Miura, the Sony Gulf managing director, said at the launch at Crowne Plaza Hotel.

Although the technology has just been officially launched on the African continent, Miura indicated that 30 million 3D play stations had already been sold in Japan, the US and Europe.

He said 3D had boosted the market share for their flat screens because of its quality.

“Every week in Japan, we achieve a 68% market share for 3D TV because of the quality of 3D pictures,” Miura said.
He said their next move was to produce movies, cameras to capture the movies, and the TV to screen them.

“We want to have a complete value-chain which can deliver quality to the customer,” he noted.

“Due to our involvement in the development of original content and our efforts over the years to create ‘Good 3D’ content captured on Sony’s professional equipment, we believe this will translate into a superior and seamless visual experience on Sony’s entire range of 3D compatible products,” Miura added.

Uganda coffee exports surge
Sunday, 14th November, 2010
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UGANDA expects to export 250,000 60-kg bags of coffee in November this year, up 6.% against the same month in 2009 after good weather increased bean production, the country said on Friday.

“We’ve had good weather in the latter part of this year and the beans in most of the areas which are in the middle of the season developed well,” a source at Uganda Coffee Development Authority (UCDA) said.

“So certainly the harvest has been good in the last several weeks and we think it will be a good month for exporters.” Uganda’s 2009/10 (Oct-Sep) annual exports plummeted 13%, reflecting the impact of last year’s drought and a large stock build-up by exporters who are delaying shipments in anticipation of better prices in the 2010/11 season.

It exported a total of 2.67 million bags of coffee in the year, fetching $267.2m compared with 2008/09 season’s 3.06 million bags that earned $291.3m.

BoU makes strong five year growth projection
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Mr Mutebile addresses the press after launching the priority centre. PHOTO BY ISAAC KASAMANI.

By Faridah Kulabako (email the author)

Posted Monday, November 15 2010 at 00:00
The governor bank of Uganda, Mr Emmanuel Tumusiime Mutebile anticipates Uganda’s economy to grow at a rate of over 10 per cent in the next five years. Mr Mutebile said the discovery of oil, growth in the financial, telecommunications and industrial sectors will fuel the anticipated growth rate.

Economic growth improves people’s living standards, high rate of employment, increased capital investment, higher tax revenues to the government, enhanced business confidence and superior public services. Economic growth indicates the increase in per capita gross domestic product (GDP) and is calculated as the rate with which GDP changes in a particular period.

Five-year term
Mr Mutebile who was last week approved by parliament to take on another five-year term as central bank governor was speaking at the opening of Standard Chartered Bank’s priority banking centre at Lugogo on Friday. Last year, the Ugandan economy grew by 7 per cent despite the weakness of the world economy and it is expected to grow at 6 per cent this year.

Currently, the manufacturing, wholesale and retail and the communication and transport sectors are the biggest contributors to Uganda’s GPD. The wholesale and retail, manufacturing and communications and transport sectors contributed Shs1.1 trillion, Shs805 billion and Shs310 billion respectively to the total national revenue, according to statistics from the Uganda Revenue Authority.

When production starts, the oil sector is expected to contribute considerably to the country’s GDP. However, the distribution of the petro-dollars has remained a contentious issue with no clear mechanisms to guide how revenue from the sector will be shared among the government and other parties involved.

Assured protection
Mr Mutebile said, “I can assure you oil revenues will be properly protected. There will be institutional mechanisms put in place to enable transparency in using oil revenue.” Low inflation also contributes to high economic growth. The October inflation, according to figures from the Uganda Bureau of Statistics stood at 0.1 per cent.

Mr Mutebile said in priority areas during his new term of office will be keeping macro economics stable, low inflation and investing in infrastructure to remove constraints to economic growth.

Standard Chartered Bank’s priority banking centre targets the bank’s premium banking customers with monthly earnings of Shs8 million and above. Mr Herman Kasekende, the bank’s head of consumer banking said customers will be required to pay a monthly flat fee of Shs40, 000 to acquire a Visa Debit card, cheque book, transact at ATM points and priority processing services on all banking requests.

u.g boy

November 15th, 2010, 12:03 PM

Campaign attracts few firms
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Mark Muhumuza

KAMPALA, UGANDA - The Proudly Ugandan campaign has been recently concluded with the aim of exposing Ugandans to the quality products that are produced locally.

The annual event was mainly aimed at attracting Ugandan manufacturers, service providers and producers to have their produce exposed to Ugandan consumers.

Despite the opportunity this would have presented, some major Ugandan producers did not show up for the event. However some local and large producers like Shumuk, Roofings, Britania and Rwenzori showed up for the low key event.

The campaign also attracted a handful of small Ugandan producers and service providers of which mostly their packaging and branding was relatively poor. The organisers, Private Sector Foundation Uganda (PSFU) want Ugandan's to appreciate the products made in their home country instead of depending on imported goods.

"Each year, Ugandan's spend $1b on imported goods and services and whereas good Ugandan companies also produce high quality products and services," Gideon Badagawa, the executive director PSFU says.

However it is important to note that quality products alone also has got to come with good packaging that consumers also look at.

Ms Lucia Namubiru makes sweaters and other clothing but her packaging is not attractive as consumers said while they looked at her products at the proudly Ugandan stall. She uses her name for the brand but this does not offer her the exposure she would require to fend off competition. She has no registered the brand and the only way she can be contacted is through mobile phone.

This means Namubiru's products are with limited exposure and very few people will not get to know her products. Her competition comes from producers who are able to provide attractive branding that gives them market exposure.

Uganda currently has the capacity to produce products like Vegetable oils, beverages, construction, reading materials, rice, footwear and plastics among others.

There has, however ,an increased worry from some producers in the market that with the common market they are faced with competition from Kenya and then the influx of some cheap Chinese products.

The large producers are still able to fend off this competition especially companies in the construction sector alone cannot satisfy this market which means that still Uganda has to import.

For small scale producers especially in the garments section are still lacking on the side of packaging and brand capacity for the products.

The large producers are still competitive with their brand presence in terms of the regional markets but the small Ugandan markets still struggle to be known because of their limited presence in the shelves of supermarkets and other commodity exposure areas.

The ratifying of the East African Common Market Protocol has opened up new markets for Ugandan goods but also created a jittery feeling among some of the players in the market warning of an influx of goods from the region.

Kasubi tombs to cost $1m
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Paul Mwijagye

KAMPALA, UGANDA- The construction of the Kasubi Royal tombs will cost an estimated US$1million, Buganda Kingdom officials have said.

William Naggaga, the permanent secretary in the office of the Katikkiro (Prime minister) said so far the kingdom has collected UShs500m (about $250, 000). He said the construction is scheduled to start soon and will take two years. Naggaga said they are likely to be ready by March 2012.

Uganda's Minister of Gender Labour and Social Development Gabriel Opio told journalists last week in Kampala that the World heritage Centre had approved an emergency request of $71, 342. "These funds will be used for various reasons such as facilitating a national workshop to sensitise the public on the reconstruction process and purchasing equipment for documenting the reconstruction process," Opio said.

He said the money will be used for developing a plan to manage the envisaged risks at the site such as installing fire fighting equipment and fencing among others. Opio said all the money collected will be put in a trust fund for better accountability.

The minister was also accompanied by a mission from United Nations Educational, Scientific Cultural Organisation (UNESCO) which had been in the country for four days. The mission had come to assess the state of conservation of Kasubi Tombs and advise the parties on how to ensure proper reconstruction of the tombs and improve the overall state of condition of the property.

"The decision reached by the World Heritage Committee at their meeting in Brazil that was held in July 2010 stated that Uganda had to wait for this mission before any work begins at the site," said Opio, adding, "We are aware of the pressure to start reconstruction but we are also aware that we must abide by the rules of the World Heritage Center."

Uganda to build oil refinery
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KETTY ADERA & IMMACULATE NAMANDA

Kampala - Uganda is to construct an oil refinery for its petroleum extracts at Kabaale in Buseruka Sub County, Hoima District, State Minister for Mineral Development, Mr Peter Lokeris, has revealed.

He was speaking at a consultative meeting on petroleum exploration held recently in the western district of Hoima. The meeting was attended by local district officials, civil society organisations, community leaders and the public.

He noted that after several consultations and research by Foster Wheeler Energy Limited, a UK based firm, it was resolved that Uganda had the potential of owning a petroleum refinery. "After consultations with development partners, we have concluded that a refinery should be built in our country," he said.

Over $4.6b will be used for the construction, $2.05b for the refinery and $2.57b for a processing plant. In addition a pipeline from Kabaale via Nakasongola about 100 kilometres north of Kampala will cost $144m. The construction is expected to start in 2012 and be completed by 2015.

The refinery is expected to produce 60,000 barrels of oil daily. " Uganda consumes 18,000 barrels of oil per day hence the remaining oil will be absorbed by markets in DR. Congo, Rwanda , Burundi Southern Sudan, Tanzania and Kenya ," the minister added.

Having a refinery in the country will bring many benefits, including bigger monies and creating employment, according to Mr. Fred Kabagambe Kaliisa, the Permanent Secretary, Ministry of Energy and Mineral Development. "The refinery will not only collect maximum profits from the petroleum extract but also create employment opportunities for the nation," Kaliisa said during the meeting.

Minister Lokeris had earlier on informed the meeting that the exploration firms were at first opposed to having a refinery constructed in Uganda due to its high costs. However, the government convinced them to make some contributions towards the construction of the refinery.

The government will survey and demarcate 20 square kilometres of land for the refinery to create a wider buffer zone.

Initially, five sites were chosen for the refinery and they included; Biso in Buliisa, Kabaale in Buseruka, Nakasongola and two other sites along the L.Victoria basin. The site for the refinery had to be near a water body, not prone to earth quakes, have a flat topography and should be sparsely populated. Kabaale was eventually chosen because it had all the above qualities and it is the nearest to the oil wells.

u.g boy

November 15th, 2010, 10:22 PM

Hoima council passes sh7b budget
Monday, 15th November, 2010
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By John Bosco Tugume

HOIMA municipal council is to spend sh7.3b, according to the budget estimates for the 2010/2011 financial year.

The budget was approved on Friday by the district council at Rukurato hall in Hoima town. The council also approved a three-year development plan.

Presenting the plan, the secretary for works and security, Alex Byansi, said the plan would centre on providing social amenities in the municipal council.
He said the municipal council would open up about 10km of roads, maintain 25km of existing roads and install street lights.

About six latrines will be constructed in different primary schools located in the town, construct classroom blocks at Bulera Primary College Demonstration School, Bwikya Muslim Primary School and also build latrines at St. Mary’s Duhaga Girls and Kasasa primary schools.

He said Nyakatura Road will among several roads to be tarmacked.
Byansi said the municipal will also extend power to Kibati and other areas.

He said the infrastructure development would take a lion’s share to create a difference between the old town council and new municipal. “ the plan intends to address issues of social amenities in the new municipal council to create a difference between the old town council and new municipal council.

He explained that in order to address and uplift education in the municipal council, the municipal would build classrooms, provide textbooks and furniture.

Gulu seeks sh20b compensation
Monday, 15th November, 2010
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GULU University has asked the Government to give them sh20b to compensate more than 1,000 land owners who live on the 742 hectares of land given to the institution for expansion by the district.

The university secretary, Vincent Okoth Ogola, said the value of land in Acholi is five times what it once was.

“We are getting worried that the longer we take to acquire the land, the more difficult it will be to acquire it,” he stated.

Ogola was speaking to economists from the President’s office during a meeting at the university council hall recently.

Oil money to drive growth 10 percent
Monday, 15th November, 2010
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By Paul Tentena

CASH expected from the oil industry will help Uganda’s economy to grow by over 10%, Tumusiime Mutebile, the Central Bank governor, has predicted.

He added, however, that this will be possible only if the revenue is properly protected and used transparently.

“Real output growth has held up well albeit at a slower rate than before the onset of the global crisis. It is now projected that Uganda’s growth rate will be 6% in the current year, but I predict that it will grow by over 10% with more revenue from oil,” said.

Mutebile was launching a new Standard Chartered Bank branch and the priority banking centre at Lugogo Forest Mall in Kampala last week.

He added that on the account of the sound and stable state of the financial sector, the public and institutional investors have demonstrated unwavering confidence in the country’s financial sector.

Mutebile, who had his contract renewed for more five years recently, explained that as of September this year, the total number of branches and ATMs stood at 381 and 589 compared to 153 and 206, recorded in December 2005.

Housing Finance gets 15b mortgage fund
Monday, 15th November, 2010
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Okwir, Keith Muhakanizi, the bank’s board chair, Bbumba and the Central Bank governor, Emmanuel Tumusiime Mutebile, cutting a cake to launch the new head offices last week
By Sylvia juuko

THE Government plans to capitalise Housing Finance Bank with sh15b to boost mortgage financing in the country, finance minister Syda Bbumba has announced.

“The Government will participate in further capitalisation of the bank by converting the sh15b currently held in the bank into equity in line with its commitment to enhance the housing stock,” she said on Thursday.

The minister was officiating at the opening of the bank’s new head office at Wampewo Avenue in Kololo, Kampala.
She revealed that the bank would list shares on the Uganda Securities Exchange in the next financial year to allow Ugandans own a stake in the bank.

“The Government is committed to ensuring that public participates in Housing Finance’s success story.

I ask the board and management to commence arrangements to list bank shares on the securities exchange next year to support the capital markets and put wealth in the hands of Ugandans,” the minister said.

She pointed out that the biggest challenge for the financial sector was financing for long-term projects. She appealed to the bank to accelerate mortgage financing.
“We have a big deficit of mortgage financing in particular and long-term finance in general.

There is a deficit of over one million houses for the working class and upper class, with a population growth of 3% per annum. This is a big challenge.”
The minister appealed to the bank to lower interest rates on loans for customers to benefit from the bank’s efficiency in keeping the costs low on the project.

“If you were able to manage the costs, this can be demonstrated by lowering interest rates for customers,” she said.
She credited the bank for facilitating house ownership for Ugandans in the formal and informal sector.

Most of the other major banks in the country also offer mortgage financing products. They raise the money privately or through the sale shares.

Nakawa, Kira get sh10b to repair roads
Monday, 15th November, 2010
http://www.newvision.co.ug/NP/1289843324zulu.jpg
The roads agency, UNRA has awarded MULTPLEX a sh10b deal to reconstruct 15km roads in Nakawa division. They are the 8km Silver Springs–Namboole-Kinnawataka and the 7km Kireka–Namugongo roads. Last week, Mutungo residents rioted over delayed works by the firm Kireka –Namugongo through the Christian shrines and the works are already in progress.

oshon

November 16th, 2010, 10:38 PM

Uganda: Oil Money to Drive Growth 10 Percent
Paul Tentena
15 November 2010

Cash expected from the oil industry will help Uganda's economy to grow by over 10%, Tumusiime Mutebile, the Central Bank governor, has predicted.

He added, however, that this will be possible only if the revenue is properly protected and used transparently.

"Real output growth has held up well albeit at a slower rate than before the onset of the global crisis. It is now projected that Uganda's growth rate will be 6% in the current year, but I predict that it will grow by over 10% with more revenue from oil," said.

Mutebile was launching a new Standard Chartered Bank branch and the priority banking centre at Lugogo Forest Mall in Kampala last week.

He added that on the account of the sound and stable state of the financial sector, the public and institutional investors have demonstrated unwavering confidence in the country's financial sector.

Mutebile, who had his contract renewed for more five years recently, explained that as of September this year, the total number of branches and ATMs stood at 381 and 589 compared to 153 and 206, recorded in December 2005.

u.g boy

November 17th, 2010, 09:16 AM

Sh276b set aside for road repairs
Tuesday, 16th November, 2010
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By Joel Egwang

THE Government has allocated sh276.9b for rehabilitation of roads and regional workshops across the country.

A total of sh184.3b has been earmarked for national roads, sh38.4b for roads under districts, sh7b community access and sh43b for urban roads respectively.

The maintenance of three regional workshops in Gulu, Jinja and Mbarara will cost sh4.3b, according to the Uganda Road Fund one-year performance plan and expenditure programme 2010/11.

Roads in 112 districts, 13 town councils, Kampala’s five divisions and nine municipal councils will be maintained over the period.

Uganda has about 10,500km of national roads, 22,500km are under districts, urban roads cover 4,500km and 30,000km are community-access roads, according to the transport ministry.

Previously managing about 11,000km of roads, the Uganda National Roads Authority, which controls national roads, had more 9,000km added to its docket in the 2008/09 fiscal year.

This brought the total to 20,000km. That year, the Government allocated sh130b to UNRA, but its funding has since been increased to sh177.7b.

Eng. Michael Odongo, the roads fund executive director, however, said they do not finance construction of new roads.

“It is not in our mandate to build new roads, but finance maintenance works of existing roads,” Odongo said.

The Uganda Road Fund (URF) was established in 2008 to provide adequate and sustainable financing for maintenance of public roads. It was operationalised in January.

Odongo urged districts to form district roads committees to ensure transparency and accountability in the use of the monies.

According to URF guidelines, beneficiary districts are supposed to form oversight committees. He urged MPs, LC5 chairpersons, chief administrative officers, secretaries of works and road engineers to utilise the funds properly. He, however, noted that accountability of the funds was still a problem.

“These people are still not up to the task and most districts still haven’t formed committees. Leaders should ensure that these organs are in place,” he said.

u.g boy

November 17th, 2010, 08:24 PM

Investors invited to buy Nsambya Police barracks
Business
Written by Jeff Mbanga
Wednesday, 17 November 2010 19:08
An estimated 45-hectare chunk of prime land in Nsambya Police barracks is at the centre of a bidding war next week when investors present their plans to redevelop the land in partnership with the government.

The government wants to parcel out the land to private developers who will, in return, build new houses for about 7,300 police officers outside Kampala. Under this arrangement called ‘Public Private Partnership,’ private investors who will be allocated the land will also renovate the Police Training School in Masindi and build new police stations countrywide.

The Privatization Unit, the state agency that is tasked to handle the project, says all is set for the bidding contest.

“We have already issued an expression of interest. And next week (November 23) we shall have a bidding conference at Serena Hotel. This is going to be Uganda’s first truly Public Private Partnership,” said Jim Mugunga, the Project Officer.

The ministry of Internal Affairs last month reached out to potential international bidders through an advertisement in The Economist magazine calling upon interested parties to bid for the “design, construction and financing of serviced accommodation for Uganda Police force in Kampala, Entebbe and Masindi.”

Successful bidders will also design, construct, finance, manage, maintain and operate commercial properties to be built on police land. December 14 is the closing date for submission of bids. Mugunga said successful bidders will manage the properties for 30 years during which they will have recouped their investments and the properties handed to government.

Uganda, however, does not have the legal framework for the execution of Public Private Partnerships (PPP) such as this. Mugunga said the Police project will be executed using the Public Procurement and Disposal of Public Assets Act. There is also debate about which institution is best suited to champion PPPs on government’s behalf, an official closely following the debate said.

While some say that the Privatization Unit is best suited for the task, others cite the controversies that marred the disposal of parastatals and public enterprises such Uganda Commercial Bank as evidence against the unit. The government is also considering setting up a new agency, but critics say such a move will amount to nothing because the new body will inevitably depend on the experienced staff of PU.

For now, the Police project presents a stern test for the PU. The involvement of transaction advisors like Turner & Townsend (Pty) Ltd, G5 Specialised Finance (Pty) Limited, Deneys Reitz Incorporated, Infrastructure Design Forum and prominent law firm, Shonubi Musoke & Co. Advocates could, however, help PU to pull off the project.
Mugunga said it will be a consortium that will undertake the Police project.

With the consortium expected to form a Special Purpose Vehicle – a shell of a company that has gathered worldwide criticism for making it difficult to be held accountable as it lacks clearly defined management structures – Mugunga says that government will sign binding agreements with each of the investors that will form the consortium to protect itself against risks.

In the past, billions of shillings have been lost in similar ventures. In the run-up to the Commonwealth Heads of Government Meeting that Uganda hosted in November 2007, the government advanced J&M Airport Road Hotel about Shs 3 billion to make rooms ready for visiting dignitaries.

The government could lose after the late owner of the hotel denied receiving some of the money. Also, the state entered into a partnership to build the Commonwealth Resort at Munyonyo, for 30% shareholding, but decided to exit the partnership under vague circumstances.

u.g boy

November 17th, 2010, 08:31 PM

Uganda: Plans for a Cable Stayed Bridge
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A monumental cable-stayed bridge with a length of 525 metres will replace the 56-year-old one at the Owen Falls Dam over the River Nile in Jinja, officials have said. It will be the first cable-stayed traffic bridge constructed in the region.

A cable-stayed bridge consists of one or more columns, normally referred to as pylons, with cables supporting the bridge deck. The Bridges Engineer at Uganda National Roads Authority (UNRA), Mr Jonathan Tugume, on Tuesday said the planned bridge will cost US$125 million. The old one that sits atop the Owen Falls Dam-completed in 1954, is said to have exceeded its designed lifespan and is set to collapse if not relieved in time.

Despite numerous emergency repairs, it is still said to be in suspect structural condition. Furthermore, its interconnectivity with the dam has been identified to be increasing its risk exposure. The bridge is a major link between the Northern Corridor Route and Uganda's landlocked East African neighbours like Rwanda, Burundi and Democratic Republic of Congo.

The bridge, to be located to the south of the old bridge will have two major pylons and a dual (2-lane) carriageway bridge deck (road surface) projected to serve for 120 years. The bridge will be constructed using concrete, and coated with an asphalt layer. In appearance it will seem to be hanging in the air, supported by two 70 metre high pylons connected to the deck by heavy-duty steel cable stays. One pylon will be set on a small island in the river

u.g boy

November 17th, 2010, 10:16 PM

Canoe sporting to promote Uganda’s tourism
Wednesday, 17th November, 2010
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The Lake Victoria Kayak Expedition setting off from the Source of the Nile in Jinja on Tuesday
By Pascal Kwesiga

UGANDA has launched a canoe sporting event on Lake Victoria to promote the country’s tourism potential and raise funds for health projects.

A team of Ugandan journalists, Kenyans and members of the Italian Canoe Federation on Tuesday flagged off the Lake Victoria Kayak Expedition from the Source of River Nile in Jinja to Kisumu in Kenya. The journey will take five days.

Addressing journalists at the Media Centre in Kampala on Monday, tourism minister Serapio Rukundo said the sport would promote adventure and environmentally friendly tourism.

“We shall use the sport to promote our tourism potential and make Uganda more known and accessible internationally,” Rukundo said.

The expedition, he said, would also raise awareness about the safe drinking water and malaria prevention projects undertaken by the African medical and research foundation.

Rukundo said the sport was a potential source of employment to the youth and urged them to embrace one of the Olympics sports.

“The sport has the potential of bringing in more medals for Uganda,” Rukundo said.

The deputy head of the Italian mission in Uganda, Andrea Della Nebbia, said the expedition was part of the Italian government’s efforts to promote Uganda.

“The sport will not only promote tourism, but also help Uganda showcase other things.”

Kyambogo wins coffee drink championship
Wednesday, 17th November, 2010
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JULIANA Mandha, from Kyambogo University became the winner of the inter-university coffee barista championship which was held on Saturday.

Barista refers to one who has acquired some level of expertise in the preparation of espresso-based coffee drinks.

The annual World Barista Championship is the world’s largest coffee competition, drawing competitors from more than 56 nations to serve espresso, cappuccinos and original signature drinks to a panel of judges.

The 12th annual World Barista Championship will be held in June 2011 in Bogota, Colombia.

Mukono-Jinja road for repair
Wednesday, 17th November, 2010
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By samuel balagadde
The Uganda National Roads Authority (UNRA) has contracted the Spencon/Striling joint venture to reconstruct the 80km Mukono-Jinja road.

The project, which will cost sh37b, is yet to start, Dan Alinange, the roads agency spokesperson, said during a tour of the road last week.

He said the contractors will also replace old road signs to ensure safety. He revealed that the road would be widened to a dual carriage way.

“We are working on the road’s new design, but it is still in the early stages.”

Uganda discovers high-yielding potatoes
Wednesday, 17th November, 2010
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BY joshua kato
Uganda has discovered sweet potato varieties which can be used to increase food security.

This was made possible by the newly-established modern bio-sciences research facility in Nairobi, Kenya. The varieties are yet to be made public.

“Our aim is to support research and build capacity by empowering scientists to lead the coming agricultural revolution,” says the facility director Segenet Kelemu, adding that it puts Africa’s research capabilities at par with that of the developed world.

The facility, housed at the International Livestock Research Campus in Nairobi, was launched on November 5 by Kenyan President Mwai Kibaki.

It is a new part of the African bio-sciences initiative to help African scientists and institutions become big technology users and innovators.

Uganda is also using the facility to research cassava, especially in connection with the cassava brown streak virus, which is threatening to wipe out the crop in many parts of the country.

“Many of the research findings generated so far have found immediate applications in agriculture,” Melekemu says. The facility is open to African agriculture researchers.

Researchers from Uganda, mainly working with the National Agriculture Research Organisation, along with students, have already benefited from it.

The facility uses new technologies and computer science to study organism cells, which is faster than the older methods.

“Because it is faster, solutions to crop and animal problems are found quickly,” they explain. The facility was set up with a $21m grant from the Canadian International Development Agency.

S.African firm boosts local technology sector
Wednesday, 17th November, 2010
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BY David Mugabe
Buhleni Group, a multi million dollar South African infrastructure technology firm, is moving into East Africa.

The decision by the high-value telecommunications service provider to venture into the region comes at a time when leading telecoms in Uganda are on an expansive drive to increase penetration and push for the low end of the pyramid, such as customers in the countryside, amidst increasing competition.

According to Yesse Oenga, the Zain chief executive, the firm plans to build over 400 new masts across the country.
MTN will also add several base stations to enable the telecom giant to complete its network presence in Uganda.

“These present opportunities for high-skilled and high-value firms like Buhleni, which have experience in this kind of work,” said a telecom expert from South Africa.

The company is a good example of the African renaissance driven by Africans sweeping across the continent, especially with the model of partnerships. Founded in 2007, this hi-tech firm is a symbol of this.

Sibusiso Mvelase (pictured), Buhleni chief executive officer, said the company’s main edge is in identifying global systems manufacturers excelling in their field and then building top end stations that enable customers to maximise earnings.

“We utilise these sub-systems in customer’s stations by including design, integration and maintenance of the clients systems, thus maximising the revenue generation capability of the customer,” said Sibusiso.

He, however, called on governments to employ regulations that support young people.

Buhleni’s challenges are similar to those enterprises across the continent face, ranging from lack of financial access with even South African asking for high-value collateral.

The firm hopes to use its southern African experience to help the rapidly-expanding telecom market in Uganda.

u.g boy

November 17th, 2010, 10:22 PM

u.g boy

November 18th, 2010, 10:17 PM

Vision new board tours company
Thursday, 18th November, 2010
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Engineer Peter Kola (second right) explains how the new press operates to the New Vision board of directors. (L-R) Monica Chibita, company secretary Gervase Ndyanabo, Steven Bamwanga, Oode Obella and Grace Dwonga
By Andante Okanya

THE new board members of New Vision yesterday toured the new purpose-built $5m (sh10b) factory that houses the $9m (sh18b) ultra-modern printing press.

The four are Dr. Monica Chibita, a senior lecturer at Makerere University, Oode Obella, the former assistant commissioner in the finance ministry, Steven Bamwanga of the Associated Consultants and Grace Dwonga, the executive finance director of Vitafoam.

The board members’ tour was guided by the company secretary, Gervase Ndyanabo, who also briefed them about the company operations.

Apart from the printing press inspection, the quartet also toured the newsrooms of both New Vision and Bukedde newspapers, plus the electronic platforms; 94.8 Vision Voice Radio, Bukedde TV studios and Bukedde Radio.

Ndyanabo said the company had ordered more equipment to boost the factory and TV station. Shipment, he said, was underway.

Noting that they were satisfied with the strides that the company is taking, Bamwanga called for the setting up of more newspaper kiosks in residential areas to increase on the circulation.

In the last financial year, New Vision grew by 15.6% to sh49.95b, compared to the previous financial year’s sh43.2b. The after-tax profit was sh734m, down from sh2.2b last year.

NRM assures Ugandans on oil money
Thursday, 18th November, 2010
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By Raymond Baguma

THE ruling National Resistance Movement party will ensure efficient utilisation of proceeds from oil for the benefit of all Ugandans, a party official has said.

Residents in the oil-producing areas will have exclusive advantages and most of the employees will be from the region.

“The NRM will put all natural resources to the benefit of local people where the resources exist and the country at large,” Ofwono Opondo, the spokesperson for the NRM campaigns, said in a statement on Wednesday.

Opposition presidential candidates accused the NRM of offering no affirmative action to Bunyoro region where commercial deposits of oil have been discovered.
Opondo, however, described the claims as rhetoric.

He said the NRM candidate, President Yoweri Museveni, continues to receive rousing support on the campaign trail.
“We are grateful for the thousands of people leaving the opposition parties to join NRM.

"We also appreciate the “big fish” that joined NRM, particularly Obote’s cousin Obadia Akaki, Hajj Badru Wegulo, Osinde Wangwor, Henry Peter Mayega and the top FDC mobiliser of Arua Municipality, Safi Ali,” Ofwono said.

He noted that the NRM campaign message of Prosperity-For-All through improved incomes, better service delivery and job creation, has been well received.

“On issues such as roads, power, education, health, agriculture, our manifesto clearly articulates how NRM will adequately address them,” he added.

He said the NRM was assured of support, citing the recent LC5 nominations, where opposition parties failed to field candidates in a third of the districts.

President okays Chobe golf course
Thursday, 18th November, 2010
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Madhvani takes Museveni around the lodge during the launch
By vision reporter

PRESIDENT Yoweri Museveni has directed the tourism ministry and the Uganda Wildlife Authority to allow the Madhvani Group to build a golf course and swimming pool in the Murchison Falls National Park, saying government departments needed to support investors promptly.

“What is wrong with giving them a few yards to build a swimming pool? Let them build the pool and put the golf course in place because I don’t see how these interfere with conservation,” he said while launching the group’s Chobe Safari Lodge in the park in Amuru district.

The President said investors like the Madhvanis’ had played a big role in the recovery of the economy, adding that the country is now ready to take off, especially with its investor-friendly policy in place.

Serapio Rukundo, the tourism state minister, said the Government would import 23 rhinos to beef up those at the Villa Ranch. It will also promote cultural tourism, he said, adding that tourism could be used as part of the northern region rehabilitation programme.

Mayur Madhvani, one of the group’s directors, urged the Government to have a budget for promoting tourism in partnership with the private sector. He appealed to the President to intervene in a row, in which UWA had withdrawn the group’s licences to exclusive zones in parks.

“We have already invested sh60b in the national parks and we are prepared to discuss and co-operate if we get a proposal, which protects our investments in the parks,” Mayur said.

The Madhvani Group caused a stir a few years ago when it applied for a licence to build a recreational centre in Queen Elizabeth National Park.
The recreation centre was supposed to have a golf course which would be a source of attraction for tourists.

u.g boy

November 21st, 2010, 04:47 PM

Chinese dragon bites local manufacturers as importers laugh last
TUESDAY, 16 NOVEMBER 2010 13:43 BY HAGGAI MATSIKO
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Lillian Busingye is a local shoe manufacturer. Her company Buffalo Foot Wear produces over 600 pairs of shoes a week for big shoe stores such as Bata, but like many local, growing companies, Buffalo Foot Wear produces below its capacity. The three-year-old company is supposed to produce 13 000 pairs a week, but because of capital and labour shortages and dependency on importing certain raw materials, it is producing less.

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Astall of shoes at one of the kiosks near the new tax park in Kampala.

Walking through Kampala’s streets, littered with cheap and in most cases substandard products from China, one gets an impression that industries like Buffalo Foot Wear face an abundance of market challenges. While Busingye’s shoes sell for Shs 20,000- 40,000, Chinese shoes on the street go for as low as Shs 3000. Chinese products are cheap because small industries in China have low costs of production and are in most cases subsidized.

However, in Uganda the costs of production are very high. For instance, electricity tariffs are the highest in the region at 15 shillings per unit. Interest rates are also high at 18 percent and Ugandan companies also incur import taxes on raw materials.

A bachelor of commerce professor, who preferred not to be quoted, warned that proliferation of cheap and substandard imports indirectly hurts the economy. These goods, he says, don’t allow local industries to grow in qualitative and quantitative terms. Moreover, because the standard of the imports are poor, even local manufacturers end up manufacturing fake goods in order to produce at a similar cost to be competitive.

“People who think China produces poor quality goods are mistaken,” says Busingye. “It is these local traders who order for those cheap products but otherwise some of the best quality products like Clarks are from China.”

This dilemma is aptly manifested in Uganda’s jewellery business. Leilah Nankya, a local jewellery manufacturer at Zainab Aziza Emporium, sells the cheapest of her earrings for Shs 3000 each. She also makes bungles and necklaces for Shs10, 000 to 30,000. But Nankya is forced to compete with cheap Chinese and Indian jewellery products; a packet of 10 piece earrings costs Shs 1000 at wholesale. This means that a trader who sells Chinese earrings for Shs 1000 each can make a 900 percent profit on each sale. If the same trader was to deal with Nankya, who sells her earing at Shs 2800 wholesale, the trader could only charge Shs 3000, the equivalent of Nankya’s retail price.

Moreover, unlike the Chinese manufacturers whose goods easily find their way into the Ugandan market, Nankya is limited to the Ugandan market. She says that although she has international market potential, she does not have an exporting licence. Many local manufacturers do not export their goods because it is expensive and a lengthy process to acquire a cross border trading licence.

Nankya says that she still has a market because she produces on a small scale and admits that people are always comparing her jewellery, which is strong and long lasting, with the poor quality, imported, cheap ones. “The good thing is that those who know what quality means continue buying and they are willing to pay the price but they are the minority,” she says.

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Leila Nankya, one of the local Jewelers at her outlet.

Kassim Kalenge, a shoe vendor on Kampala road says he has been selling shoes for five years now but that nothing sells like Chinese shoes. “People like cheap things and that is what they buy in most cases,” Kalenge says. “I can sell over 30 pairs a week yet when I was selling the originals I would sell like five pairs a week; people always said that my shoes were expensive.”

At Mutaasa Kafeero Plaza, one of the many local phone dealers, Ivan Mayanja says that he has never sold anything like Chinese phones. He says he has been able to triple his business volumes as a result of the profits he accrues from these Chinese made phones. “People know that they are of poor quality but they need to have music, radio and double lines and you can get all this at as low as Shs 50,000 with Chinese phones. With original brands, one needs over two hundred shillings,” Mayanja says. “We sell both types but no matter how much you convince people, they always opt for the cheap.”

At shopping Arcade opposite Mukwano Arcade there are mounds and mounds of Chinese products. Shopping Arcade is littered with ladies bags, shoes, dresses and all sorts of merchandise from China. “Chinese products are very profitable,” says Juma Mulondo, a local importer. “Clients buy them more than they buy those original branded goods from brand outlets.”

Mulondo has an outlet in this arcade but he says that he mainly supplies wholesellers and retailers. “People come from as far as Kenya for these goods and the demand for them is terribly high,” he says.

In order to deal with this trend, the government introduced a trader’s licence this year for foreign traders. These traders will now need to prove they have at least US $ 100,000 in capital to invest in their business before they can operate in the country.

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Light Shopping Arcade. ALL PHOTOS BY HAGGAI MATSIKO

A World Bank report, “Ease of Doing Business 2011,” indicates that introducing this licence for foreigners has made doing business in Uganda harder. But Maggie Kigozi, the Executive Director Uganda Investment Authority (UIA)says that this licence is intended to limit foreign traders who come here to engage in petty business.

Moreover, the government has also taken measures to ease production costs on local traders. “We do not extend credit facilities to our manufacturers because we do not have that capacity yet but we are trying to create a conducive environment for them by building industrial parks which will reduce the costs of production,” says Kigozi. The parks are places UIA has reserved for industries so that resources like electricity, water and other factors of production are easily mobilized.

Some local manufacturers say that despite a number of hurdles, they do not fear competition because their goods are of higher quality compared to those imported Chinese shoes. The government has extended tax levies to some of them and recently pre-inspection fees that were hiking costs of production were scrapped.

Trade between Uganda and China is vital to the Ugandan economy, especially its agricultural sector which employs 80 percent of the population. But for Uganda to benefit from trade with China, the country has to prioritise and strategise with exports that are more competitive. Currently, Uganda exports cotton, coffee, leather, fish, and minerals, whereas major imports from China are dominated by mechanical and electric appliances, textiles and garments, pharmaceuticals, porcelain, enamel and footwear. Trade volumes between Uganda and China increased by at least 10 percent in the 2009 financial year and at an Occupational Safety and Health seminar in Kampala earlier this year, the Chinese Ambassador Mr Sun Heping, said trade between the two countries stood at about Shs 550 billion ($250 million) compared to Shs 490 billion ($222 million) in 2007. Moreover, exports to China stood at about Shs 44 billion ($20 million) while imports from China were about Shs440 billion ($202m)

u.g boy

November 21st, 2010, 08:44 PM

DStv introduces free view service
Business
Written by Our Reporter
Sunday, 21 November 2010 16:28
Pay television company, DStv, has unveiled a new service that will enable its subscribers watch some television channels for free.

DStv FreeView allows access to channels such as Mindset Learn, UBC 140, NTV 141, Trinity Broadcast Network, Rhema, DayStar, Inspiration Television, TV Mundial, The Islam Channel plus CCTV News, NHK and CCTV 4.

Company spokesperson, Helena Mayanja, says the gesture demonstrates MultiChoice Africa’s commitment to creating a vibrant and exciting television industry in Africa.

DStv subscribers will also be able to access 32 radio channels including BBC 1, 2 and 3 and Voice of America free of charge.

As a digital service, DStv FreeView contributes to African governments’ efforts of migrating existing analogue services to digital services (digital migration) thus assisting in bridging the digital divide.

This service gives chance to subscribers based in rural areas, where the analogue signal reception is hazy, to enjoy a clear signal of the above channels.

DStv recently introduced the Dish on TV to Africa, a new service designed to enhance television viewing experience. Dish on TV improves access to DStv programming information at the simple touch of a button.

Madhvani boosts game park accommodation with 66 rooms
Business
Written by Simon Musasizi
Sunday, 21 November 2010 16:31
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A double room at Chobe

A $13 million investment in Chobe Safari Lodge at Murchison Falls National Park has increased by 66, the number of rooms available for tourists in game parks.

The lodge officially opened last week by President Museveni brings the total investment by Madhvani Group to Shs 60bn in the national parks. The Group manages two other lodges: Paraa Safari Lodge in Murchison Falls National Park with 57 rooms and Mweya Safari Lodge in Queen Elizabeth National Park.

“This is by far the biggest investment ever made by the Madhvani Group in the hospitality sector in Uganda,” said Mani Khan, the Group’s director of tourism operations.

“Chobe [is] the most luxurious safari lodge ever constructed in Uganda. A fusion of local materials blended with modernity has created a signature luxury safari style that is unique to Chobe Lodge. We are confident this will become the gem in Uganda’s tourism crown and one of East Africa’s top luxury holiday destinations,” he added.

The lodge was built in 1950. The facility went into ruin and ceased operation in the 1970s. In 1995, Chobe was handed to the Madhvani Group in the privatization process that saw the group acquire Paraa and Mweya lodges as well.

However, due to the insurgency in northern Uganda, rehabilitation of the lodge stalled.

“We waited patiently for 15 years until security was restored in the north and commenced rehabilitation in 2009,” Mayur Madhvani, one of the group’s directors said.
“We have totally transformed the old lodge adding our positive mark on the history of this lodge,” he added.

The lodge’s main block has been remodeled, the room sizes extended and balconies added. “Each category of accommodation narrates a tale of comfort and luxury for the discerning visitor ranging from the Presidential Cottage, to the various categories of luxury tents and guest rooms,” Madhvani said.

Murchison Falls is the largest national park in Uganda and one of the most sought-after. But like other parks in the country, it continues to face shortage of accommodation.

According to Amos Wekesa, chairman of the Uganda Tourism Association, during peak seasons, the park experiences room shortage of over 40 percent.

“The number of visitors to the park has been doubling each single year. Within three years, there will be a very big deficit of accommodation in the park. There is, therefore, need to increase the number of rooms in the park,” Wekesa said

The lodge, located 280km from Kampala, is a three and a half hour drive from Kampala and 45 minutes by air.

u.g boy

November 22nd, 2010, 09:03 AM

Ishaka road to cost sh75b
Sunday, 21st November, 2010
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UNRA officials and representatives of the pre-qualified firms tour one of the murrum sites
By Chris Mugasha

THE Government is to spend about sh75b on the construction of the Ishaka-Kagamba road.The Uganda National Roads Authority (UNRA) procurement manager, Dan Mugura, said they are in final stages of selecting a contractor to build the 35km road.

Mugura said five international construction firms had been pre-qualified to compete for the contract.

Mugura was on Thursday leading the five pre-qualified construction firms to assess the condition of the road to enable them submit the quotations of the whole project.

He said all the designs had been concluded, pending construction, which is expected to kick off next year in January.

Mugura explained that the project is in fulfillment of President Yoweri Museveni’s pledge.

The road will link Ishaka to Mirama hill on the Uganda-Rwanda boarder, which will ease the movement of people, especially businessmen and tourists. The road is the shortest route from Ishaka to Rwanda and to the districts of Ntungamo, Kabale, Kisoro, Rukungiri and Kanungu.

Uganda Cranes target new-look trophy
Sunday, 21st November, 2010
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Walusimbi (centre) presents the trophy to Edgar and Musonye
By Michael Nsubuga

CECAFA TOURNAMENT:
November 27-December 11

UGANDA Cranes have more than one primary reason motivating them towards completing a memorable CECAFA Challenge Cup hat-trick in Tanzania.

Aside from the $30,000 (sh60m) in prize jackpot guaranteed for the winner, coach Bobby Williamson’s side are relishing the prospect of becoming the first team to carry home the brand new regional trophy.

The gold-plated trophy was unveiled during a press conference on Saturday, just two days before the Cranes regroup for daily training sessions at Nakivubo Stadium.

“The incentives brought forward by the new sponsors provide us with a good motivated opportunity to re-launch our title defence,” FUFA Chief Executive Officer Edgar Watson stated.

CECAFA general secretary Nicholas Musonye pointed that this year’s sponsorship worth $450,000 (sh900m) will take care of air tickets, accommodation for all 12 participating teams and other logistical needs.

“We are delighted to see a new era in CECAFA and promise to hold credible competitions to supplement the sponsors’ efforts in promoting the game in the region,” Musonye said.

According to the new sponsorship package under East African Breweries Limitted, the prize money structure remains the same with the overall winner going home with $30,000 (sh60m), $20000 (sh40m) for the runner-up and $10,000 (sh20m) for the third-placed team.

There will also be prizes for the best team, best goalkeeper and top scorer among others.

In the event that one of the invited teams wins the tournament, a replica trophy will be handed over and the prize money.

Musonye also announced that all the games will be played in Dar-es-salaam to allow easy TV coverage by Supersport.

The sponsor’s corporate relations director Sandor Walusimbi hinted that it was the company’s wish to have one of the countries from the region qualify for the 2012 Nations Cup finals and the 2014 world cup in Brazil.

“Our support for the tournament signals the start of a long time strategy to develop football in the region,’’ Walusimbi said.

CECAFA groups
Group A: Tanzania,Zambia,
Burundi, Somalia
Group B: Rwanda, Ivory
Coast, Sudan, Zambia
GROUP C: Uganda, Kenya,
Ethiopia, Malawi

Government to invest $3b in refinery
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By Justus Lyatuu (email the author)
Posted Monday, November 22 2010 at 00:00
Hoima/Buliisa

Government has said it will inject $3 billion in a new refinery in Hoima District. Speaking at the launch of Tullow Oil’s projects (Six Legacy Social Enterprise) in Buliisa and Hoima Districts, Mr Peter Lokeris, the state minister for mineral development said: “According to a study, Uganda has found it suitable to build a refinery to process the oil within.” He said: “Government is on the lookout for a company to build a refinery at the shortest time possible; this will give Uganda a chance to engage in fuel production after the refinery is completed.”

Tullow’s Six Legacy Social Enterprise targets community development through construction of health centres, a multipurpose community hall and a primary school in the districts of Hoima and Buliisa at a combined investment of Shs4.8 billion.

Mr Brian Glover, the Tullow Oil Uganda general manager, said: “Our Social Enterprise programme focuses on projects that make a real and sustainable difference on communitie

u.g boy

November 22nd, 2010, 09:26 AM

Fireworks taps into 50 African markets
Sunday, 21st November, 2010
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FIREWORKS PR, a subsidiary of Fireworks Advertising, one of the local leading public relations agencies, has signed an affiliate agreement with Arcay Communications, a Johannesburg-based, communications consultancy.

The deal provides Fireworks PR with a footprint that covers 50 African markets, top officials announced last week.

Arcay Communications is the exclusive affiliate for Africa to Burson-Marsteller, a leading global public relations and communications firm with offices and affiliate partners in 81 countries.

Arcay Communications has over the past 15 years developed the only truly indigenous African communications network. Fireworks PR will work closely with Gina Din Corporate Communications, a leading PR Agency in Kenya.

Karuma dam project back on board
Sunday, 21st November, 2010
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By Ibrahim Kasita
UGANDA is searching for investors to build the 700MW Karuma hydropower project in efforts to ensure cheap and reliable power supply aimed at boosting economic growth.

The contractor, who will be selected under the international competitive bidding, is expected to start work early next year.

“Firms are free to form a joint venture/consortium for the supply, erection and commissioning,” Kabagambe-Kaliisa, the energy ministry permanent secretary explained.
“They should be financially sound not having litigation history or history related to non-performance of contracts.”

The new development follows the withdrawal of the Norwegian power firm, Norpak Power in 2008, after it went burst due to the global debt crisis and what it called “a protracted conflict with the World Bank.”

Since the firm had carried out extensive work on the project, Uganda negotiated to buy the project’s intellectual property rights, upgraded its capacity from 200MW to 700MW and repacked it for a public-private partnership project.

Although the project costs are not yet known, it is likely to hit more than $1.2b, energy experts estimated.

This is because of cautious approach willing investors are taking due to global economy uncertainties.

But Kaliisa argued that Karuma was one of the high priority projects in the national development plan.
“The Government has allocated funds under the energy investment funds towards the construction of the project,” he stated.

The project will be supervised and managed by the Uganda Electricity Generation Company who will be the Government nominee and licensee of the project.”

Uganda has for the past decade experienced erratic power supply coupled with high power rates, losses and low access, which make the country less competitive.

This was because the impressive economic growth registered in the 1990s was not matched by investments in the power sector as demand outstretched supply.

By 2004, the country was producing 120MW compared to the power demand of 380MW, causing power shortages.
To increase investments in the power sector and attract the private sector, the Government set up an energy investment fund in 2008.

This was aimed at providing public equity in partnership with the private sector for hydropower projects.
An initial sh191.3b was injected into the fund and used to kick-start the 250MW Bujagali hydropower project.

When setting up the fund, it was envisaged that the annual allocation would finance for example the 700MW Karuma hydropower project.

Kaliisa noted that the scope of work would include planning and engineering, civil construction and commissioning of the plant.

u.g boy

November 23rd, 2010, 09:20 AM

Government to employ 1,000 doctors
Monday, 22nd November, 2010
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By Conan Businge and Taddeo Bwambale

A total of 1,000 doctors are to be hired to improve the delivery of health services, according to the Health Service Commission.

The chairman of the commission, Prof. George Kirya, said an advert will be placed in the newspapers in December and the interviews will follow thereafter.

He said the recruitment of health workers will be a continuous and consistent process every year.

“Uganda used to be an icon in health service delivery. We are rebuilding the health sector and we must take the human resource as a priority to health service delivery,” Kirya noted.

Kirya was speaking yesterday at the ongoing 16th health sector joint mission 2010 at Speke Resort Munyonyo.

There are about 2,000 doctors employed by the Government. But this number is still low, since many health units depend on junior health workers.

A new health ministry report shows that 54% of the doctors working in the public sector also work in the private sector.

It is not only doctors that are in shortage in the country. The latest drug and health services delivery probe report by State House showed that over 65% of health facilities were severely understaffed.

Uganda needs about 46,977 health workers in public service, of which only 28,000 are currently in service. The health ministry’s 2007/08 annual health sector performance report showed that there was only 46% of the required number of doctors.

Only 80% of the required nurses are hired, and for allied workers, it is 71%. Administration has 56% of its slots filled, while support staff has 61%, according to the USAID report.

Makerere, the most prestigious medical school in the country, produces about 100 doctors a year. In total, the country produces about 250 doctors per year; considering other universities.

In Uganda, the doctor to patient ratio is 1:24,725, falling short of the 1:600 standard set by the World Health Organisation.

The recruitment is part of the five-year new health sector strategic and investment plan.

Plans are also in advanced stages to increase salaries for all health personnel, according the director of health services, Dr. Kenya Mugisha.

The health service commission has also proposed to the Cabinet to have doctors availed vehicle and housing soft loans.

The Government offers newly-recruited medical officers a gross monthly salary of sh626,181, while the highest medical officer at the level of a consultant takes home sh1.6m per month.

This is three times less than what Rwanda and Kenya give their doctors.

This financial year, the Government increased salaries for health workers by 30%.

Asked about the recent reports of loss of public funds to ghost workers and health units, Mugisha said: “The health sector is being run by people with no skills and managerial potential.”

“That is going to be solved and we are going to have a revamped health sector. We are going to be transparent, committed and more accountable,” he added.

As the number of health workers declines, the mortality rate increases, according to health experts.

Sh14b set for national mapping
Monday, 22nd November, 2010
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By Josephine Maseruka

ABOUT 4.4 million euros (sh14b) is needed for a comprehensive mapping of Uganda over three years.

According to Alex Lwakuba, a commissioner for crop production and marketing in the agriculture ministry, mapping of the whole country is a very expensive venture which requires substantial amounts of money.

“But if we use the existing information in the reconnaissance report of 1958/60 and modern technology, the exercise could be done in six months at 1.2 million euros (sh3.8b).

Lwakuba was commenting on the $7m (sh1.6b) which was proposed to cover the National Physical Development Plan formulation.

This was during a one-day workshop on the National Land Use Policy and National Physical Development Plan implementation at the Grand Imperial Hotel in Kampala recently.

The physical development plan defines space, land and resource utilisation, leading to sustained action to ensure urban and rural development and environmental protection.

Participants, mainly from the local government and lands ministries, observed that the proposed budget was very small.

Lwakuba regretted that Uganda’s land use and land cover information is outdated and does not capture all combinations of current land use that characterise the country.

He said mapping the country would help in dividing it into viable agricultural production zones for export. Participants noted that the three–year period beginning 2011, proposed for the preparation of the national physical development plan was too long.

The state minister for urban development, Urban Tibamanya, cautioned Ugandans against politicising and undermining the process of making a national land use plan.

“Regardless of your political affiliation, let us join hands to give Uganda a nationally acceptable land use plan.”

Tibamanya called for a participatory process so that the final plan is owned by all Ugandans.

“Let us plan with the people. Participatory planning should be embraced right at the beginning of the exercise

]Small farmers’ exports hit sh1.6 trillion[/B]
Monday, 22nd November, 2010
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By D. Ssempijja and J. Waiswa

SMALLHOLDER farmers exported produce worth $700m (about sh1.6 trillion) in the past three years. The improvement was possible because of a $35m (sh77b) grant from the United States Agency for International Development.

According to Paul Forrest, the project director, the money, which was channelled through the Livelihoods and Enterprises for Agricultural Development project, was used to improve cash and food crop production in the country.

“We are happy with the progress of the project in Uganda. We have reached 405,000 farmers out the 600,000 targeted,” said Forrest.

Forrest was addressing beneficiaries from the Uganda Coffee Trade Federation, the Uganda Seed Trade Association and the Uganda Oil Seed Producers and Processors Association during a meeting last week at the project’s head office in Nakasero in Kampala last week.

The five-year project aims at moving Uganda’s agricultural sector from subsistence farming to commercial farming.

Forest said the project supports smallholder farmers and related small-to-medium enterprises to optimise opportunities created by rising commodity prices, growing regional markets and the urgent need to improve food security.

The programme operates in 35 districts and mainly targets farmers’ associations and groups in the country.

“We have about 500,000 farmers working with USAID through farmer groups.

“It has been with the private sector to have more farmers and field farmer’s schools,” Forest said.

He added that the project funding would help with activities that strengthen producer’s organisations, focusing on group management skills, institution capacity and agri-business skills.

The project has increased the farmers’ household income and produce by over 50% by teaching them on better farming methods.

It supports 15,000 producer organisations formed and has so far reached 4,500 families.

Uganda’s 4G experience
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By Walter Wafula (email the author)
Posted Tuesday, November 23 2010 at 00:00
Kampala

Invariable, incredible speeds and inexpensive. Those are some of the words that describe Foris Telecom’s Fourth Generation (4G) wireless internet solution on offer in Uganda.
The descriptions lured me to the firm’s wireless internet product: US211 WiMax 802.16e branded Inconnecting. At the end of October, I spent Shs69, 000 to join and experience Uganda’s first and only 4G wireless network. I also wanted to draw the line between Foris’ 4G, the Orange 3G, MTN’s 3G+ and Warid’s Edge internet products.

At that price, I felt In was a good bargain considering that I acquired my Warid and Orange wireless internet modems at Shs238,000 and Shs70,000, respectively. Warid Telecom has since reduced its product to Shs75,000 due to competition pressures.

In terms of monthly subscription, Foris also offers 500MB for Shs15,000 which is better than Orange’s Shs25,000 for similar internet capacity per month. Even better, is its 1GB internet capacity at Shs25,000. Ideally, this is supposed to be my internet deal of the year considering that Foris’ competitors don’t offer such attractive prices for similar capacities.

Unfortunately, I have not been able to make use of my 4G product since October 29, either because my laptop is not compatible with the service or the product is just not as user friendly as the others. But I comfortably use the Orange and Warid internet modems on the same laptop without any problem, which makes me doubt if it’s not compatible with Foris’ service.

A day after acquiring the product and installing its software on the laptop to browse, I discovered that for the 4G modem to function, I had to first download the Microsoft .NET Framework version 2.0 from the internet. The .Net Framework is a component needed to execute some programmes when using Windows XP because it was ignored in the upgrade from Window 2000, according to Mr John Kizito, the account relations manager at Foris.

I didn’t have access to the internet at that time because I expected to get online with the product. The Microsoft.NET Framework request puzzled me because with the other service providers, it’s a matter of “plug and play”. For instance, the Warid service requires a user to insert the USB internet modems into the laptop or computer ports, install the software that comes with the device, read and accept the terms and conditions.

Without reading the terms, the installation process takes less than two minutes before one can start browsing the internet using the device. But even after installing the .NET Framework two days later, I had to call the Foris customer care centre to get the user name and password for the device to function. Despite utilising the two and following all the procedures from the customer care centre, I didn’t get online, because “the connection timed out” each time I tried to browse the internet.

I have not experienced 4G internet to-date despite visiting the Foris office for assistance. But a user I know has managed to operate the service after installing the .Net Framework. “It is as fast as Orange internet,” he said.

Growth should match equal benefit distribution

The Ugandan economy has been growing at an average rate of 5.8 per cent between 2005 and 2010. No wonder, the Minister of Finance, Planning and Economic Development was recently nominated the best African Minister of Finance in recognition of her outstanding performance, especially with regard to maintaining macroeconomic stability.
Major landmarks have been made in controlling inflation and maintaining a fairly high economic growth rate.

Whereas this is commendable and worthy of international recognition, it should be noted that economic growth itself does not ensure the development of the country. Economic development is only possible when the high national income benefits the majority of the people in form of better socio-economic amenities or public goods. It is possible to register a high economic growth rate when the majority of the people are stuck in poverty. As we pursue economic growth, government must make a deliberate effort to reduce income disparities and improve the quality of public goods. The healthcare system, transport, housing and education must simultaneously be improved and made accessible to the majority of the people as the economy grows.

Therefore, before we can celebrate the achievement of Hon Syda Bumba, and her team at the ministry, we need to stop and ask ourselves. Who are the beneficiaries of this growth and to what extent are Bumba’s policies pro-poor? Pro-poor planning demands that the optimal level of investment is made in the most productive sectors of the economy. For example, in most developing countries, agriculture remains a bedrock sector for the economy, and is one of the most important sources of income to the nations. Substantial investment in agriculture is needed in these countries to sustain economic growth.

According to the World Bank, income originating from agriculture is twice as effective in reducing poverty in agriculture led economies as income originating from other sectors. This is because agriculture employs a large proportion of labourforce in these countries.
The sector employs 78% of labourforce in Uganda and contributes close to 25% of the country’s Gross Domestic Product. Ironically, only 3% of the national budget goes to Agriculture.

It was the realisation of the dominant role played by agriculture in developing economies that led to the Maputo Protocol of 2003 of which Uganda is a signatory. The protocol commits member countries to allocate at least 10% of their national budgets to agriculture.
The often advanced argument for limiting agriculture spending is the concern for macroeconomic stability. However, macroeconomic stability should not be seen as an end in itself, but a means to higher development goals. By maintaining a crunch on the resources available for agriculture the long term growth of the country’s economy is heavily compromised.

Therefore, developing pro-poor policy frameworks is a worthy development strategy for Uganda. The government should not overemphasise maintaining macroeconomic stability at the expense of long term development. Equal attention should be focused on increasing strategic investments in the most productive sectors of the economy to ensure a long term growth curve. It is only when economic growth is sustained over the long term coupled with improved quality of life for the population that we can talk of development.

u.g boy

November 23rd, 2010, 09:21 AM

Dutch investors intensify rivalry for Uganda resources
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http://www.monitor.co.ug/image/view/-/1058240/highRes/216036/-/maxw/600/-/fu1h6i/-/bizpower001px.jpg
The Fiduga flower farm in Mpigi District. One of the Dutch’s major investments is in the flower industry. PHOTO by dorothy nakaweesi.

By Walter Wafula (email the author)
Posted Tuesday, November 23 2010 at 00:00
Although Ugandans continue to be the leading investors in the country, the Netherlands tops the list of Foreign Direct investment. There are about 15 fully Dutch-owned companies in Uganda with about six partly Dutch-owned investments in Uganda. Two Dutch firms are planning to invest $60 million (Shs136 billion) in the manufacturing sector. Walter Wafula writes.

Dutch firms are gradually acquiring a taste for Uganda as the scramble for the East African economy among European, Asian and the Middle East investors hots up. Between July and September this year, the Netherlands emerged as the top source of Foreign Direct Investment (FDI) for the economy, the latest investment report from the Uganda Investment Authority (UIA) shows. Two Dutch firms plan to invest $60 million (Shs136 billion) in the manufacturing sector. The capital accounts for about 18 per cent of the $340 million (Shs771 billion) inflows, which are expected to create up to 15,307 jobs among several sectors in Uganda.

This is the first time in two decades that the Netherlands was rising to the apex overtaking traditional externals source of FDI like; the United Kingdom, Kenya, South Africa. However, Ugandans continued to be the top investors in their country during the quarter with 40 planned projects worth $178 million (Shs404 billion) and 11,338 planned jobs. During the period, India and China - the world’s fastest growing emerging markets followed the Netherlands in the second and third place respectively.

The rise of Netherlands (Holland) comes at a time when firms from other countries are positioning their subsidiaries in Uganda to tap into opportunities in the oil and gas industry and related industries. Uganda has at least 2 billion barrels of oil lying underneath and is expected to generate at least $2 billion or Shs4.5 trillion per annum from the sale of its oil to external markets. But the Uganda-Netherlands relationship can be traced 30 years back when fuel vendor Royal Dutch Shell set up Shell Uganda, its domestic subsidiary. Other key players from the country include; KLM Royal Dutch Airlines and Unilever Uganda – an Anglo-Dutch home and personal care products company.

Equally active has been the entrepreneurial development bank of the Netherlands commonly called FMO. The bank holds portfolio investments in seven companies in Uganda; including; Bank of Africa Uganda, DFCU Bank, Bujagali Energy Limited, Celtel Uganda, East African Development Bank, EcoPower Uganda and SAEMs hydropower projects.

In most of these companies, the bank has invested through loans and equity in the range of between $3.5 and $10 million to the firms. In total, the bank has invested close to $82 million (Shs257 billion) in Uganda projects, according to Ms Marieke Janssen, the economic and fellowships officer, at the Netherlands embassy in Kampala.

Large Dutch firms that have gone it alone to make substantial investments in Uganda have had an affinity affair with the flower industry. Key among these has been Wagagai Limited, the largest domestic exporter of chrysanthemum cutting to Holland and a biggest employer in the horticulture industry. The company has invested up to about $15 million (Shs34 billion) in the industry since it was set up in 1996.

Wagagai exports up to 450 million plant cuttings to Europe and mainly Netherlands, with its total exports topping 750 tonnes per year. In terms of revenue, from its exports, it earns about $9 million (Shs20.4 billion). “We employ over 1,500 workers and pay around Shs800-900 million in taxes like Pay As You Earn and National Social Security Fund, annually,” Mr Olav Boenders, the managing director Wagagai Limited, told Business Power last week.

Other players
Other major players in the sector from Netherlands are Fiduga Uganda Limited - a subsidiary of Fides BV Group Holland and Xclusive Cuttings Uganda. Like Wagagai, Fiduga and Xclusive export chrysanthemum flowers. Fiduga started its operations in 1996 with only $100,000. To-date, it has invested more than $8 million (over Shs18 billion) (creating jobs for 472 workers in the industry according to Jacques Schrier - the managing director and the UIA.

The flower firms mainly export their products to the European Union using Netherlands/Holland as the entry point. According to the Uganda Flowers Exporters Association, Uganda produces 60 per cent of the chrysanthemum cuttings exported to the Netherlands. With the supply, six of every bunch of 10 chrysanthemums bought in Holland are imported from Uganda.

The floriculture industry is one of Uganda’s top 10 foreign exchange earners contributing close to $30 million in export revenue, the UIA says. The sector has grown from a single two hectares farm in 1992 to 20 farms covering 192.1 hectares in 2009. Total investment in the sector exceeds $54 million with over 6,000 employees. The industry produces over 40 varieties of flowers with roses and chrysanthemum cuttings accounting for 70 per cent and 25 per cent respectively of the exports.

In Uganda, flowers are largely grown around the Lake Victoria Basin in Mpigi, Mukono and Wakiso districts. “The escalating growth trends in flower exports have positioned Uganda among the top five largest exporters of cut flowers in Africa,” a report by UIA says.

Wagagai’s Boenders told Business Power that the main reason why the company decided to invest in Uganda was the country’s good climate, stable political situation, safety, availability of water and grants at the time. Uganda’s hot and humid temperatures around the Lake Victoria basin are said to be ideal for the growth of short stem roses, chrysanthemum cutting. This cuts out the cost of heating green houses unlike in the Netherlands. Mr Schrier added that the ideal climate conditions guarantee all year round production of flowers naturally. “In Holland, a shortage of flowers occurs during the cold season (winter). Because of low production, flower imports from Uganda were meant to fill in this gap,” he explained.

Besides the above factors, the government recently eliminated import duty green house units and offered a 10 tax holiday for flower exports giving the flower sector a boost. Another investor Robert–Jan Nieuwpoort, the managing director of SecondLife Uganda, an information and technology (IT) service company also identified Uganda’s competitive labour market as a pull factor for Dutch investments to the economy.

In Uganda, salaries and wages vary between $35 and $1,300 per month for unskilled, semi-skilled and skilled manpower, depending on the company and one’s job description and bargaining power. In comparison, in Netherlands where there is a defined minimum wages, companies have to pay workers at least $64.4 (Shs203,000) per day or Shs6 million per month. The good pay enables workers to cope with the high standards of living in the EU.

Mr Nieuwpoort is set to establish a $1.5 million (Shs3.4 billion) e-waste plant in Namanve Industrial Park to set up East Africa’s largest computer recycling facility. SecondLife currently distributes refurbished computers in Uganda, provides IT maintenance and servicing to companies. With the increasing use of computers in the region, the company intends to exploit Uganda’s strategic position to collect and recycle used computers from Kenya, Tanzania, Rwanda and Burundi.

The project is partly aimed at helping the region to have an acceptable way of disposing of unwanted used electronics instead of burning them or burying them underground as of today.
Despite the diverse business opportunities and favourable climate that Uganda offers, Dutch investments in Uganda are undermined by some challenges. The core bottlenecks remain the persistent corruption, high transportation and energy costs, and difficulty in acquiring property. “The investment process here is very difficult compared to Netherlands. Over there, acquiring land is very easy and there no crooks when it comes to getting land titles,” Mr Nieuwpoort said in an interview last week.

For the flower investors, Mr Boenders said, airfreight costs have been a major problem over the last year although the conditions are getting better. “On airfreight and handling at the airport we need all the support we can get from government,” he told Business Power.

Over the last two years, the Uganda government has attempted to fix its poor transport infrastructure by allocating one trillion shillings to repair and construct new roads and alternative transport systems. While progress has been made on roads, there’s little to celebrate about most air and water transport infrastructure across the country.

Notwithstanding the current bottlenecks, the Dutch investors like the Chinese, are determined to continue investing in the country to reap from the fast growing economy and the fortunes that the oil and gas sector is expected to bring. While the Dutch are keen on investing, the discovery of commercially viable oil has sparked off interest from Chinese, French, American, Indian and British firms among others.

Between July 2009 and June 2010, China was the number one source of FDI in Uganda with planned investments worth $245 million (Shs556 billion) to creating 5,568 jobs, according to UIA. Besides the construction, wholesale and manufacturing sectors, the Chinese are keen on partnering with British firm Tullow Oil Plc, to invest at least $4.6 billion in Uganda’s first oil refinery.

China’s aggressiveness could see them retain the top FDI spot in the coming years. Their investment drive is also expected to be bolstered by the recent Shangai Expo in China where Uganda as an exhibitor attracted over one million visitors.

Norway joins list of countries vying for Uganda’s energy sector
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By Stephen Otage (email the author)
Posted Tuesday, November 23 2010 at 00:00
Kampala

A delegation comprising different energy companies from Norway is in Kampala to analyse the energy situation in the country and help boost private investments in the sector.
The delegation, under the name the Norwegian Renewable Energy Partners, is in the country to prospect the business potential in the sector, which still remains predominantly run by the government.

According to Mr Thorbjorn Gaustadaether, the Norwegian Ambassador to Uganda, the energy sector is very important for Uganda’s economic development and Norway has a history stretching to over 100 years in power generation which Uganda could benefit from. “Private investments are necessary to develop Uganda’s energy sector further. Uganda is a country endowed with rich natural resources and has potential for further hydro power development,” he said.

He added that Norway annually supports the Uganda government with grants close to $10 million per year and also helps with technical expertise in infrastructural development.
“Uganda has several small rivers. There are several sites around Mt. Elgon and it is advisable that government partners with private investors so that the national development plan of generating 3,800 megawatts capacity can be achieved,” Mr Gaustadaether said.
Only 6 per cent of Uganda’s population currently has access to electricity while the government has put in place the Rural electrification programme aimed at taking power to rural areas.

According to Mr Gaustadaether, Norway supported the government during the disbanding of Uganda Electricity Board and the setting up of the Uganda Electricity Distribution Company Limited. Norway has also supported the government in setting up of a power plant in Namanve, construction of Bugoye in 2009 and financed the Kiira Power station as well as the rehabilitation of the Arua-Nebbi power station.

Currently, Jacobsen Elektro and TronderEnergi are the two Norwegian hydro power companies operating in Uganda with power projects in Kikagati and Nsongezi along River Kagera which both are generating close to 30 megawatts.

u.g boy

November 23rd, 2010, 07:18 PM

Housing Finance Bank gets new home in Kololo

By Elvis Basudde

Today, Uganda is enjoying a tremendous building boom. Towering office blocks, conference centres, financial institution buildings and sophisticated hotels comparable to those in Europe, are springing up in and around Kampala city, almost simultaneously.

One of the latest entrants on Kampala’s skyline is the Housing Finance Bank Limited (HFB Ltd) building. The gates to comfortable and easy banking are opening today when HFB unveils its new head office in Kololo.

True, banking is a passion for some and a way to save or borrow money or meet new people. Whatever the reason may be, we all need to save the hard-earned cash, or negotiate a loan mortgage, while fulfilling our basic and luxurious needs.

But, this is often not the case in Kampala when it comes to transacting banking business, especially with the traffic jams that take hours. HFB is taking this stress off customers to the outskirts of the noisy streets.

http://www.enteruganda.com/brochures/images/ofice-house.jpg
A side view of the magnificent building of the Housing
Finance bank at Kololo

The office is strategically situated in a highly visible location opposite Kololo Airstrip. One is immediately overwhelmed by the sight of the magnificent bank built on a one and half acres of land.

“It is a brilliant idea. I think it works, especially for people in the vicinity and office workers who want to bank or withdraw money on the way home,” says a customer found withdrawing money.

The spectacular complex, which is a show of architectural might and innovation, was handled by Seyan International Company as the main contractor assisted by a number of sub-contractorsat a cost of sh10.8b.

Construction commenced in September 2008 and lasted 18 months. The building portrays a high standard of workmanship. For the customers in Kololo, Kampala and the surrounding areas, the opening of this complex is probably the greatest news they have received in the recent past.

The world-class new home of HFB, formally Housing Finance Bank of Uganda, therefore marks a milestone achievement for this indigenous financial institution. It is easily accessible by customers from Jinja Road, Ntinda and other parts of the city, since traffic is light in this area.

Coupled with a spacious car park, it is much faster to drive into and bank, withdraw money or negotiate a mortgage. The bank has numerous highly hospitable staff.

The design of the building was aligned with the HFB image and market positioning strategy by innovatively using extensive curtain walling, sun-shading and traditional materials.

“The building was designed to be environmentally friendly, making use of its orientation, natural light (large windows, less than 13 meters between opposite faces of the building) and providing multi-purpose sun-shading,” says Jean Katende, project manager.

The multi-purpose sun-shading reduces heat gain and air-conditioning operational costs, a thing that cannot be achieved using blinds or curtains. This kind of design also provided better quality light by reducing glare.

It also gives a better working environment for staff by eliminating direct sunlight to offices when it is hot. It provides supports for window cleaning as other window cleaning methods are not as effective given the shape of the building.

Katende says that owing to zoning restrictions, the height of the development was limited to three storeys to comply with planning requirements aimed at allowing safe landing of aircrafts and helicopters on the Kololo airstrip.

There are two independent blocks; one exclusive to the bank and the other for rent. In accordance with international fire codes, the building is provided with fire escape routes, smoke detectors, pressurized wet riser and hose reels for fire fighting.

There is a water tank reserve enough to last two to four days. The basement level comprises mostly parking, sentry houses, generator rooms and driveways.

The ground floor comprises spacious banking halls each covering an area of 350 square metres. Their ambience depicts modern interior décor with complete customised luxurious lounge sofas and other furniture.

The first and second floor provide extensive office space. At the top is a roof terrace with cafeteria, a sickbay and a room for nursing mothers and resting facilities.

u.g boy

November 23rd, 2010, 10:30 PM

Zain telecom firm becomes Airtel
Tuesday, 23rd November, 2010
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AIRTEL chief integration officer N. Arjun and Airtel Uganda managing director Yesse Oenga launching the new brand

Parliament approves sh200b for poverty fight
Tuesday, 23rd November, 2010
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By Catherine Bekunda

PARLIAMENT has approved a sh200b loan to fight poverty. The money will be borrowed from the World Bank and paid back in 40 years.

Finance state minister (economic planning) Ephraim Kamuntu said the loan would help transform Uganda from a third world country to a middle developed country.

The funds will be used to support government reforms to improve access to public services and to strengthen the capacity of local governments to deliver services.

“It will boost government efforts in accountability, auditing, public financial management and public service management,” he noted.

Robert Sebunya (NRM), who tabled the report of the national economy committee, said the loan would empower public officers with skills to ensure compliance to procurement regulations.

He noted that compliance to the PPDA law would improve value for money and budget absorption, which are core in fighting corruption.

Sebunya concurred with Kamuntu that previous poverty reduction support credit had helped reduce poverty from 56% in the 1990’s to 44% in 1997 and 31% today.

However, MPs expressed concern that the loan had no tangible activities which would be supervised.

“It does not have any critical investment areas. Farmers will continue suffering with poor prices,” Alice Alaso (FDC) noted.

Franca Akello (FDC) noted that the loan had no specific activities: “How will MPs and other authorities oversee the implementation of this loan if we don’t know what it is going to do?” she asked.

The national economy chairperson, Stephen Mukitale, however, explained that unlike other loans that are project-specific, this one was direct support to the national development budget: “The funds will help us ensure efficiency and to choose priority areas for investment,” he said.

Local government accounts committee chairperson Abdu Katuntu (FDC) decried the lack of capacity in the local government to handle funds sent to them.

“Many new districts lack employees to manage their finances. This breeds corruption and misuse of public funds,” he said.

Bungokho, Manafwa get power line
Tuesday, 23rd November, 2010
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Manafwa Woman MP Sarah Kayaga commissioning the project with other officials on Sunday
By Ronald Kalyango

THE Government has allocated sh11.2b to extend power to Bungokho South and North constituencies in Mbale district.

The power line will also benefit residents of Bubulo, Bugobero, Munamba, Bupoto, Butiru, Bubutu, Magale and Lwakhakha in Manafwa district.

Housing state minister Michael Werikhe, who officiated at the groundbreaking ceremony at Namwenura Primary School in Bungokho sub-county on Saturday, asked residents to cooperate with the contractors.
Werikhe urged residents to wire their houses in time to avoid delays in accessing the power.

“We are grateful to the Government for extend power to our area. This has been a long process,” he said.

The construction works will be completed in 12 months.

The Rural Electrification Agency (REA) spokesperson, Dr. Patricia Litho, noted that the extension of the power line was not a campaign gimmick to vote for President Yoweri Museveni in the 2011 polls.

“REA has its own plan of activities and it is our mandate to extend power to rural areas. It is a coincidence that we planned this groundbreaking ceremony during the campaigning period,” said Litho.

At another groundbreaking ceremony in Manafwa district, the Bududa resident district commissioner, Wanjusi Wasieba, said he had lobbied for the project since 1996.

“I tried to lobby for the extension of power to our district when I was still a minister. Today, I am extremely happy that the Government has found resources to extend power to our area,” Wasieba said.

The Manafwa district Woman MP, Sarah Kayaga, asked residents to reward President Museveni with votes in the forthcoming elections.

“I am grateful that the President has fulfilled his pledge. The only way of expressing our gratitude is by voting him in the upcoming elections.”

Government, Tullow in talks over tax
Tuesday, 23rd November, 2010
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Ministers Lokeris and Muganwa Kajura (centre, in suits) luanching community projects at Kaiso in Hoima sponsored by Tullow Oil
By Vision Reporter

THE Government and Tullow Oil are discussing how much tax the company should pay following its intended share sell, mineral development minister, Peter Lokeris, said last week.

Tullow plans to sell shares to France’s Total and China National Offshore Oil Corporation. Lokeris said the talks follow an agreement between Tullow, Heritage Oil and the Government over the payment of $400m in capital gains tax accrued when Heritage sold its stake in blocks 1 and 3A in the Albertine Graven.

“About $121m has already been paid and we have reached an agreement on how they should pay the remaining $283m.”

Lokeris said Tullow officials had also met the President with the view of continuing into the production phase as the farm-down taxes issue is resolved.

Tullow external affairs vice-president, Rosalind Kainyah, said they were committed to the development of the oil sector in Uganda.

“We are here for the long-term. We have invested over $750m and we continue to invest more, as well as build meaningful partnerships because we believe in the potential of this country she said.

Demand for crashed stones soars
Tuesday, 23rd November, 2010
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By Samuel Balagadde

THE demand for crashed stones for construction has surged with the increased building and roads projects.

A tonne of graded crashed stones ranges from sh25,000 to sh35,000, up from sh20,000 previously. That of stone dust costs sh18,000.

Richard Lakuma, the Dott Services project manager, advised big construction firms to open up their own quarries to minimise expenses.

As a result, some road construction companies have opened up their own stone quarries to minimise the costs. But other firms still buy the materials from quarry operators despite cost involved.

Experts warn that crashing rocks for graded stones is a health hazard and degrades the environment.

It also a health hazard on the lives people and property in the surrounding areas.

MPs ask Germany to connect electricity to northern region
Tuesday, 23rd November, 2010
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MEMBERS of Parliament from Lango have asked the Germany Development Cooperation to extend solar power to primary schools and support the Government’s rural electrification programme.

They said lack of access to electricity and modern energy was affecting development across the sub- region.

The MPs led by Ben Wacha (Oyam North), made the appeal at Lillian Tower Hotel in Lira on Monday during the tour of cooperation project in Lango. Citing Apac, the Maruzi County MP Devid Ebong, noted that only 2% of the population in the district had access to power.

“That means there is energy poverty. Yet there is increase in agriculture production which needs value-addition,” Ebong said. The MPs were assessing the cooperation’s implementation of peace, recovery and development plan in the northern Uganda.

Expert tips on oil agreements
Tuesday, 23rd November, 2010
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By Ibrahim Kasita

UGANDA should not rush the process of developing the politics and policies of petroleum management, a senior expert has advised.

Heidi Lundeberg, the head of Southern and Eastern Trade Information Institute (, explained that Ugandans should take the time necessary to develop good laws in a democratic manner.

“The fact that the reserves are relatively small makes the need of strong legislations and regulations upfront all the more important,” she said in a paper “A Developmental Analysis of Uganda Oil Policy, Bill and Contract.”

“Uganda will not be able to use the incentive of future concessions as leverage for firms to review the laws and guidelines in its favour.”

Lundeberg was speaking at a public debate on oil policy at the Uganda Management Institute last week.

The warning comes a time of great need of raising domestic revenues and great expectations regarding the exploitation of oil and gas. The main range of revenues raised from the oil industry are signature bonuses, government share, taxes and royalties.

Signature bonuses are paid as a one-time amount when signing an exploration agreement. Lundeberg called for the renegotiation of the contracts signed between the Government and the oil firms.

“So far, the signature bonuses of Ugandan blocks have been very low compared with other countries,” she said, adding that block 3A was given away for free, while the others have been sold for as little as $200,000 and $300,000.

The expert said the DR Congo, known for hosting resource ‘robbers’, sold a block at $3.5m. She also pointed out that the percentage of the royalties that should paid to the Government was low.

“According the leaked contract, a licensed company, with a daily production of less than 2,500 barrels, is to pay 5% royalties and 7.5% for a daily production exceeding 2,500 barrels,” Lundeberg said.

“Compared to other developing countries like Bolivia, this percentage is low. According to the contract, the so-called profit oil, what is remaining when royalties are paid, and costs are recovered, is also very low.”

The expert advised that the new up coming laws on oil revenues should not adept the weak tax regime of the existing contracts but rather look towards taxing the oil companies higher.

“Uganda should demand local content rather that leave the issue of local employment and use of local sub suppliers to the operators,” Lundeberg said.

“The petroleum business is not Labour intensive (but) still the few jobs should be for Ugandans. Petroleum industry is lucrative and gives government the opportunity to impose high taxes.

Zain changes name to Airtel
Tuesday, 23rd November, 2010
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By David Mugabe

FORMER Zain subscribers will have the brand Airtel flashed on their handset screens instead of Zain from today as they await the arrival of new sim cards.

The name change to Airtel completes months of waiting since Bharti acquired 16 Zain African operations in June for $11.7b.

Airtel now has its work cut out following the interruptions that come with brand changing.

The one network seamless product where Zain subscribers can use their sims anywhere on the continent, will for now only apply to Africa.

“We are in the process of extending to where we have a presence,” said N.Arjun, the Bharti chief for projects and integration.

“Africa is on the grasp of change. The mobile handset will be the device that will change the lives of the people for the better,” said Arjun at the rebranding brief at the Kampala Serena Hotel yesterday.

Yesse Oenga, the Airtel Uganda managing director, explained that the target was to make Airtel the most loved brand by 2015 by driving affordability and availability.

“There are huge opportunities across Africa, delivering on that opportunity through affordable communication (is our target),” Oenga said.

Oenga said there was work going on to unveil packages that are relevant for different categories.

He promised that within the next six months, the number of masts will have more than doubled across the country.

The rebranding was not done simultaneously across Africa, but in clusters. Nigeria rebranded on Friday and Kenya on Monday.

Bharti’s Asian model of outsourcing and mass appeal is expected to be its major strategy across the continent that still has huge swathes of opportunity for penetration.

Penetration is only at about 32% of the population.

But experts say the penetration figures should be considered because half of the population are young people without a consuming power.

Bharti Airtel’s African businesses accounted for 25.6% of total revenue and 21% of mobile subscribers in its latest financial quarter to September 30.

Bharti currently has a little over 40 million customers in Africa across 16 markets following its acquisition of Zain Africa earlier this year. But it is looking to grow its African customer base to 100 million by 2012 by expanding its networks and services.

kihihi

November 24th, 2010, 01:33 PM

Uganda’s economy will expand about 10 percent in the year through June 2012, Finance Minister Syda Bbumba said.

“We are pursuing good economic policies which will see the economy grow,” Bbumba said today in an interview in the capital, Kampala.

Growth will be driven by the service and construction industries, Keith Muhakanizi, the deputy secretary to the Treasury, said in a separate interview. The forecast for expansion next year compares with the 6.4 percent that Bbumba projected on June 10 for the 2010-11 fiscal year.

Uganda, with a population of 32 million people, will become an oil producer later this year when Tullow Oil Plc starts production at its Kasamene field. The East African nation is trying to reduce its reliance on foreign donor aid, which accounts for about 4.6 percent of gross domestic product, according to World Bank data.

Tullow, the U.K. explorer with the most licenses in Africa, plans a partnership with France’s Total SA and China National Offshore Oil Corp. to help develop Uganda’s oilfields. Neptune Uganda Ltd., a unit of the London-based Tower Resources Plc, and Dominion Petroleum Ltd. of Bermuda are the other companies exploring for oil in Uganda

popa1980

November 24th, 2010, 02:01 PM

fortportal

November 24th, 2010, 02:26 PM

kihihi

November 24th, 2010, 03:10 PM

Later this year or next year? I thought it was next year?

Uganda has much work to do, do you know it produces 300MW of power compared to 2000MW in Ghana which has only 25 million people? This must be one of the lowest per capita producers of power in Africa.

This projection is for next financial year beginning june 2011, for this financial year it is about 7%.

The current power generation capacity now is about 600 MW from about about 300 MW five years ago. Of course the actual power produced fluctuates depending on if there is drought or scarcity of fuel so amount produced averages 80% of generation capacity.

Investment in power generation was inadequate because to an extent because of over dependence on donors for our development budget.To the donors over investing on power generation was not a priority and since we were limited by resources we followed their advice of only increasing power generation when demand outstrips supply which was hard to project as the economy boomed in the last five years so we found that method was risky as it hampered growth.

But the government has now changed its tactic and is now believes in creating demand for power i.e build dams and then later connect people or later provide incentives to industries to come up and consume the power.

Thus right now the government in the next five years plans to increase power generation from 600 MW to 3000 MW, while not alot is a marked improvement from before and will spur value addition in agriculture and thus begin industrialization of Uganda.

Baganda

November 24th, 2010, 06:06 PM

A new firm has projects that in the next 5 financial years, Uganda securities exchange may take over Tanzaniaz Exchange to be the 2nd biggest economy in the next 5 years.this has been mostly due to increase in investment in Uganda, since it has attracted the biggest investors in the half of 2010.

JoHaN 15

November 24th, 2010, 06:21 PM

Why do all Ugandans type in Arial narrow?

bh2010

November 24th, 2010, 06:34 PM

^^ :lol:

the internet cafe's there probably charge extra for more popular fonts :hahaha::hahaha:

On a serious note, the title kinda doesn't make sense but i'm happy for any good news outta UG

Yoniii

November 24th, 2010, 06:35 PM

Why do all Ugandans type in Arial narrow?
:lol:

jules3c

November 24th, 2010, 06:39 PM

they all got the same typing instructor. :lol:

popa1980

November 24th, 2010, 06:49 PM

i hate that font.

u.g boy

November 24th, 2010, 07:53 PM

This projection is for next financial year beginning june 2011, for this financial year it is about 7%.

The current power generation capacity now is about 600 MW from about about 300 MW five years ago. Of course the actual power produced fluctuates depending on if there is drought or scarcity of fuel so amount produced averages 80% of generation capacity.

Investment in power generation was inadequate because to an extent because of over dependence on donors for our development budget.To the donors over investing on power generation was not a priority and since we were limited by resources we followed their advice of only increasing power generation when demand outstrips supply which was hard to project as the economy boomed in the last five years so we found that method was risky as it hampered growth.

But the government has now changed its tactic and is now believes in creating demand for power i.e build dams and then later connect people or later provide incentives to industries to come up and consume the power.

Thus right now the government in the next five years plans to increase power generation from 600 MW to 3000 MW, while not alot is a marked improvement from before and will spur value addition in agriculture and thus begin industrialization of Uganda.

the power production was set at 750 last time i checked . it will rise much when the haruma dam 750 mw and bujagali dam 250 mw are completed.

u.g boy

November 24th, 2010, 08:00 PM

Later this year or next year? I thought it was next year?

Uganda has much work to do, do you know it produces 300MW of power compared to 2000MW in Ghana which has only 25 million people? This must be one of the lowest per capita producers of power in Africa.

300 seriously that wrong.please get the facts right . power production was 300 in like 1990 . we had 2 dams generating 380by 2000. in 2010 our power is near 800. with many dams u/c . this list is general it did miss out a phew power plants.

go to link(uganda):http://en.wikipedia.org/wiki/List_of_power_stations_in_Uganda

ghana:http://en.wikipedia.org/wiki/List_of_power_stations_in_Ghana

abesha

November 24th, 2010, 08:11 PM

Why do all Ugandans type in Arial narrow?

:hahaha: :hilarious

I needed a good laugh!

Baganda, do you have a source? An article or something?

For some reason I thought the EAC was moving towards a common SE. Maybe I imagined it.

popa1980

November 24th, 2010, 08:11 PM

300 seriously that wrong.please get the facts right . power production was 300 in like 1990 . we had 2 dams generating 380by 2000. in 2010 our power is near 800. with many dams u/c . this list is general it did miss out a phew power plants.[/B][/SIZE]

go to link(uganda):http://en.wikipedia.org/wiki/List_of_power_stations_in_Uganda

ghana:http://en.wikipedia.org/wiki/List_of_power_stations_in_Ghana

May 2010

"UGANDA’S power output has almost doubled in the past five years as the country tries to satisfy increasing demand that is driven by robust economic growth.

The third largest economy in the region produces 591MW, up from the 265MW previously. This has boosted power supply, making the economy more competitive"

So its 591MW- thats paltry- Ghana has 2100MW with less people.

Uganda needs to step up its game on the power generation front.

BUTEMBO21

November 24th, 2010, 08:13 PM

Why do all Ugandans type in Arial narrow?

:hahaha: :hahaha:

Looks like they have a special software.

Xusein

November 24th, 2010, 08:32 PM

Sseki gained an urge to create a second account.

BUTEMBO21

November 24th, 2010, 08:33 PM

Sseki gained an urge to create a second account.

Its him , Mr the best .:hahaha:

I just Looked at his signature. he likes highlighting things with that green.

u.g boy

November 24th, 2010, 08:52 PM

May 2010

"UGANDA’S power output has almost doubled in the past five years as the country tries to satisfy increasing demand that is driven by robust economic growth.

The third largest economy in the region produces 591MW, up from the 265MW previously. This has boosted power supply, making the economy more competitive"

So its 591MW- thats paltry- Ghana has 2100MW with less people.

Uganda needs to step up its game on the power generation front.

. we have work to do I agree on that. ive see loads of dams, thermal power plants e.g start construction.

u.g boy

November 24th, 2010, 10:40 PM

Uganda supermarkets: are they competitive?
Wednesday, 24th November, 2010
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http://www.newvision.co.ug/NP/1290616398aaaa.jpg
By David Ssempijja

LAST month, it was confirmed that three locally established supermarkets Payless, Good Price/Half Price surrendered ownership to Kenyan giants Nakumatt and Tuskys Supermarkets respectively.

The takeover of Good/Half Price gave Tuskys a lukewarm entry into Uganda contrary to the shake-up Nakumatt caused as it opened doors to Kampala shoppers in June last year with a $3m (sh6.6b) initial investment.

Half Price and Good Price supermarkets had branches in Kitintale, Ntinda, Nakulabye and Shauri Yako, while those for Payless were located in Bugolobi, Bukoto and Kabalagala.

The level of service with which Nakumatt joined the competition threw some other supermarkets into panic after declaring a 24 hour service, forcing the already established players to upscale their working hours from 09:00pm to midnight.

The intentions to sell the supermarkets in question are not yet clear but one of the former managers of Payless said “Payless Supermarket could have faced problems like any other business and management found out that business could not go beyond a certain point. That is why Nakumatt is taking it over”.

Market analysts say some supermarkets have failed to borrow a leaf from the multinationals that have stood the test of time.

“The stringent supermarket competition currently witnessed in Uganda will only leave the smartest standing. Every player must devise tactical means of acquiring and retaining more customers. Short of that, we shall hear of more being acquired,” says Charles Ocici, an international enterprise development expert.

Ocici says when competition gets tough, what saves business is the continuous dynamism in customer care which must be complemented with super quality and genuine products.

Ocici’s arguments were proven right by the revelation that the inflow of customers into Nakumatt Bugolobi, the premises formerly occupied by Payless had risen by about 15% after barely three weeks under new management, yet the same workers were retained.

“We made sure that retained employees are subjected to intense training to align them to global standards,” said Nakumatt Uganda branch manager Joshua Ng’ang’a.

“We have nothing to fear about competition from multinationals because some of the local stores like mine are bigger than the multinationals we have in Uganda. Despite their existence, the future locally established supermarkets is brighter,” said Ponsiano Ngabirano, the proprietor of the Capital Shoppers Supermarket chain.

He said the survival secret of any business lies in dependency on bank loans, timely repayment and the level of trust dealers must exhibit to their customers with the provision of quality products playing a leading role.

Ponsiano, whose supermarket is on a local expansion is constructing a new 5,000 square foot establishment in Ntida, a Kampala suburb, in addition to the one at Nakasero Market Street and that opposite Makerere University Business School.

“Within the next five years, Capital Shoppers plans to open branches in Kenya, just like Kenyans are doing here,” said Ngabirano.

However, if it is true that the Kampala-based supermarkets like those bought could not attain the required standards, then those operating upcountry should put their houses in order because the giants are targeting those markets too.

Ng’ang’a said in an interview that the acquisition of Payless launched them into an expansion plan that will see their stores in Gulu, Jinja, Mbarara, Entebbe and Mbale in the course next year.

Nakumatt runs over 23 stores in major towns like Mombasa, Kisumu, Eldoret, Meru, Kisii, Kampala and Kigali.

“We are looking forward to branding, which we will do in the next two months and after that, we learn about the market and begin to think about expansion,” Tuskys’ country manager Hassan Ali said recently.

Other notable local supermarkets sailing through the tough competition are; Quality Supermarket, Kenjoy Supermarket and other small ones distributed across the country.

Mukono’s $350,000 garbage recycling project solution to waste problem
Wednesday, 24th November, 2010
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Okol measures the garbage temperature while Namuli does the recording
By Joel Ogwang

ONCE dubbed ‘the model town,’ Mukono has, over the years, slipped into oblivion. Political strain, a poor road network, dodgy tender awards, the controversial leasing of the central market to a local mogul to erect a shopping mall and, above all, garbage-laden streets, all connived to the town’s detriment.

“We had a big problem of garbage management,” says Johnson Muyanja, the mayor. “But all that is behind us now.”

In fact, the garbage menace had heaped pressure on Muyanja, threatening his grip on his political seat.

“I refused to vote him in 2006 because of garbage,” says Issa Kaaya, a boda boda cyclist. “But he is a lucky man. Just when you think he is ‘going’, he emerges stronger.”

Adding pressure to Mukono’s provision of social services is the recent granting of municipal status to Goma sub-county by the Government in July. Mukono alone generates about 3,000 tonnes of waste monthly yet only 60% is collected daily.

With the merger, it is envisaged that monthly garbage tonnage could rise to over 4,000 while safe water coverage will rise to over 70%, from the current 50%. Already, the Seeta- Mukono water project, costed at over sh22b, is complete.

NEMA garbage project saves Mukono’s face
However, with a $350,000 (about sh700m) World Bank-funded garbage management project, Mukono town council is well on course for a reincarnation.

While the Bank bore construction costs, Mukono town council procured an eight-acre pieceof land in Katikolo village, about five kilometres west of the town.

The council too, paid for the grading of the site, water and electricity connections.

The garbage project is one of the nine being piloted in districts allover Uganda, which include Mbarara, Fort portal and Jinja.

Construction of the project kicked-off in 2008, with Multiplex winning the deal. Courtesy of the bank, Mukono, got 15 garbage skips, one truck and a tractor.

“We now have five garbage trucks and 80 plastic bins that we are yet to distribute,” says Muyanja. Looked at as a cheap long-term solution to the garbage menace in Uganda’s urban centers, the scheme uses cow dung to get rid of foul smells, with organic manure being the end product.

According to the project head, Joseph Mubiru, this is a simple technology that should be rolled out to all urban centers.

“We receive over 30 tonnes of garbage daily,” he says. “But, within two weeks, we are able to decompose garbage into manure.”

Process leading to manure
At Katikolo compositing site, garbage decomposition started in February 2010. No sooner does the garbage truck dump the refuse, than do the chores of the 24 casual workers armed with rakes and hoes begin.

First, bio-degradable garbage such as food waste is sorted from polythene bags, metal, plastics, stones, mineral water bottles and other non-degradable garbage.

On average, four tonnes of garbage are sorted in 45 minutes.

So far, Mubiru says, over 10 tonnes of glass, six tonnes of mineral water bottles, three tonnes of plastics and 10 tonnes of polythene bags have been sorted out and stored exclusively.

Local beverage companies have, however, not shown interest or placed orders for the respective recyclable products, but the hunt is on for potential buyers.

As the sorting goes on, leach (waste fluids) that flows from the garbage is collected at a fenced bay and sprinkled over the garbage. The leach contains bacteria that speed-up decomposition.

Cow dung is then added to do away with the foul odour. A tractor is used to turn over the garbage to dissipate heat that may kill the bacteria critical in braking-down the waste.

As Joseph Okol, the site supervisor, uses a thermometer to measure the heat, Margaret Namuli, the data clerk, does some recording. “Temperature above 68 degrees (centigrade) kills bacteria,” says Namuli.

“So the garbage has to be turned and cow dung added to maintain moisture and keep the micro-bacteria alive.”

The turning is done after six to eight days. En route to completing the process, manure is sieved using a wire mesh yielding fine particles that are packed into 50kg bags. Manure is got after 45 to 60 days’ toil.

Demonstration
At the site, the manure is applied to the cereal demonstration gardens which include tomatoes, cabbages, onions, carrots, matooke and egg plants. The crops’ yield is high.

“We have so far given nearby farmers 30 tonnes of free manure for trial,” says Mubiru. “Farmers are beginning to place orders for the manure.”

Todate, 35 tonnes of manure have been sold. No price has been fixed yet but it will likely be sold for sh200 a kilo.

“This is not a business enterprise, we only need to reap some money to meet our operational costs,” adds Mubiru.

The council has also enacted a bye-law in which irresponsible garbage disposal would earn a person a sh70, 000 fine or seven months in jail.

Uganda’s rural communication fund lauded
Wednesday, 24th November, 2010
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By David Mugabe

RURAL telecommunication and broadband penetration in Uganda has risen to 14%, higher than in Nigeria and Ghana, because of the clarity of government policy and use of strict targets, a November research report indicates.

The study done in seven African countries to assess the progress made in extending telephony and broadband penetration across Africa graded Uganda highly.

“The Government and sector regulator have prioritised connecting the under-served, have clear policies and follow strict targets,” said the research released this month. The survey, conducted by Informa Telecoms and Media, was dubbed “Rural Connectivity in Africa: Providing ICT Access to Rural Areas.”

Despite Uganda’s large rural population of 87%, mobile rural penetration is at 14%, while mobile market penetration is at 40%. For Nigeria, mobile rural penetration is at 9.5%.

Universal access is aimed at bridging the digital divide. But a third of respondents interviewed from Ghana, Mozambique, Kenya, South Africa, Nigeria, Uganda and the DRC say regulators have been ineffective.

Some telecom operators across Africa are disappointed with the policies of governments on the compulsory contribution to the rural communications funds, saying it could be just another cost of doing business in Africa.

All telecom firms in Uganda remit 1% of their gross profits to the Government, which is used to increase universal access.

The Uganda Communications Commission (UCC) boss, Patrick Mwesigwa, said so far 300 government secondary schools out of 600 have been provided with computers.

The target is to cover all government secondary schools by 2011.

Mwesigwa says the schools provide infrastructure and UCC provides the computers.

The rural communications development fund’s three-pronged policy aimed at ensuring broader coverage, greater connectivity and more local content is cited as the reason for the success of the policy.

But in some countries the percentage of funds given to government is higher than 1% and yet operators feel it is not achieving its aim.

Ghana is praised for existence of a clear policy, while Mozambique and DRC are cited as not doing very well.

While telecom operators are facing declining profits arising from increasing competition, thus renewed pressures to increase revenues, reaching out to rural areas where the market remains under-penetrated will be of key strategic importance, the report cited on the sidelines of the AfricaCom conference in South Africa notes.

“There is also a greater focus on network expansion and improving market share. These are clear references to extending connectivity and engaging with a new set of consumers,” read the report.

Competition has also been hailed for driving mobile penetration which is now more than 20% in most nations. In those countries, penetration remains low because of lack of penetration.

All telecom firms in Uganda remit 1% of the gross profits to the Government, which is used to increase universal access.

The Uganda Communications Commission (UCC) boss, Patrick Mwesigwa, said so far 300 government secondary schools have been provided with computers.

“The target is all the government secondary schools by 2011,”

There are about 600 schools across the country. In the programme, Mwesigwa says the schools provide infrastructure and UCC provides the computers.

The rural communications development fund’s three pronged policy attack on ensuring broader coverage, greater connectivity and more local content is cited as the reason for the success of the policy.

But in some countries the percentage of funds given to government is higher than 1% and yet operators feel it is not achieving its aim.

Baganda

November 25th, 2010, 09:14 AM

Elections are coming closer, so the NRM starts talking bullshit. Promises, promises, just as all the new roads they promise to build next year. Why they waited so long? They announce it now to get more voices. Just propaganda, nothing more. I hope the people will not be so stupid to believe all this crap.

NRM and Museveni is crap, he is there to make his tribesmen rich, as other countries like Kenya, Tanzania and particularly Rwandans r planning to npull their citizens out of poverty one man called museveni is trying to put them in poverty...but why......l.

Baganda

November 25th, 2010, 09:55 AM

Sseki gained an urge to create a second account.
whoz sseki by the where, is it bad anywhere

Kenguy

November 25th, 2010, 10:03 AM

NRM and Museveni is crap, he is there to make his tribesmen rich, as other countries like Kenya, Tanzania and particularly Rwandans r planning to npull their citizens out of poverty one man called museveni is trying to put them in poverty...but why......l.

^^
Please dont go down that road. :ohno:

sseki2010

November 25th, 2010, 05:05 PM

^^
Please dont go down that road. :ohno:
haha..kenguy i think Baganda is saying facts..look at how Kibaki is working hard to pull all resources 4 kenyans to be wealthy..look at Kagame..a role model

sseki2010

November 25th, 2010, 06:12 PM

am sseki and i dont know Baganda.....why call mi him...Uganda r in love with the Arial font even in all computer lessons..most use arial..thank u

u.g boy

November 25th, 2010, 10:14 PM

UMA calls for guarded industrialisation
Thursday, 25th November, 2010
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By John Odyek

THE chairman of the Uganda Manufacturers Association, Kaddu Kiberu, has asked the Government to stop licensing too many industries in some sectors of the economy, arguing that they were ruining the growth of these sectors.

“So many industries are being registered in the same sector without looking at the market. These industries will collapse, leading to failure of related factories,” he explained on Wednesday during a meeting with Eriya Kategaya, the East African Community (EAC) affairs minister, at the UMA Show Grounds in Lugogo, Kampala.

He argued that when there are too many industries competing for few customers, they start making sub-standard products to stay afloat.

Kiberu cited the mattress industry, saying it had a reputation for producing high quality products, but when the sector was ‘flooded’ with many players, the quality dropped.

He also argued that the trade imbalance in the East African Community was likely to cause the community to collapse.

He stressed that governments should invest in industries such as those dealing in beef, food, oil and chemicals that require massive capital and then divest them to the private sector.

“It is a shame to get food and cooking oil from the US when we have the capacity to produce them,” Kiberu said.

He appealed to the EAC secretariat to develop a formula that would allocate industries fairly within the member states.

He said the unfair distribution of industries was one reason for the collapse of the previous community.

Ketegaya appealed to the private sector to position Uganda to benefit from the community. He said Uganda’s trade in the region had expanded from $84.3m in 2003 to $377m in 2008, showing that the EAC is useful.

“I believe in the EAC. Integration is inevitable and irreversible. We need to take advantage of this opportunity. Our objective of integration is to create an atmosphere to generate wealth.”

Kategaya accused Ugandan businessmen of failing to record their complaints or challenges with the EAC.

He pointed out that the problem with the old community was that it was not driven by the private sector or focused on creating wealth, but was for distributing a few jobs and industries.

Karuma compensation ends in March
Thursday, 25th November, 2010
http://www.newvision.co.ug/NP/1290702188basii.jpg
on course: Iprar Ahmed (right), a geologist with Energy Infratech, explaining to Banaabe (second right) the progress of the works at the Karuma hydro-power site
By David Mugabe

CONSTRUCTION of the $1.3b Karuma hydro-power project will start mid-2011, after the Government has completed compensating the people that will be affected by the dam, the energy ministry has said.

Ministry officials assured the local community that compensation would be completed by March 2011, amidst demands from area leaders that the Government compensates them quickly when their property still has value.

James Banaabe, the acting commissioner in the ministry, told the residents of the five affected villages that the compensation money was available in the energy fund and would be given out after the completion of the verification process.

After the verification, the government chief valuer must approve the compensation figures before the over 300 households are paid.

“The law does not allow us to start construction before compensation,” said Banaabe at the Golden Lodge Hotel, Karuma on Wednesday.

The Karuma dam is now under the new Kiryandongo district, but the five villages of Awoo, Karuma, Nora, Bedmot and Akuridia in Oyam, Kiryandongo, Nwoya and Apac districts will be affected.

224 land owners, 103 tenants as well as 327 families will be affected by the 660 megawatts power project works.

Government is determined to have the Karuma power project started to boost the country’s low energy base. Several funding options are being explored including the issuance of an international infrastructure bond and public borrowing through the central bank.

Private sector credit grows by 30.3%
Thursday, 25th November, 2010
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By Sylvia Juuko
UGANDA’s private sector credit demand accelerated in September, a trend that will support increased economic activity, the Central bank said on Wednesday.

The bank’s data showed that private sector credit extension grew 30.3% year-on-year in September, from 28.3% in August.

The total stock of private sector credit almost reached sh5 trillion in September, from about sh4.6 trillion the previous month and sh3.7 trillion in September 2009.

“From May 2010, private sector credit in Uganda has been growing steadily. Private sector credit drives economic activity so this is likely to auger well for future economic activities,” says Adam Mugume, the director of research at the Central bank.

The biggest driver of this growth in credit is trade, commerce, building and construction.

This trend, however, is a departure from the previous that was personal loans.

While most sectors have registered a rise in credit growth, personal loans are trending downwards.

The trend shows that personal loans’ share of credit has been declining to 16.5% in September from 26.2% in the same month last year.

The cost of borrowing could also be a factor in the rate of decline for the personal loans.

“If there are many people who demand for credit, the interest rate will go up until market clears. Interest rate could deter borrowing and a rational borrower should not borrow when the rate is higher than what the person can afford,” Mugume says.

Another factor was the rate of growth of formal employment which is not as robust as in the previous years, he said.

“The formal employment is also not growing as rapidly as it was before so that could explain decline in personal loans,” he explains.

Central bank’s report also shows that the cost of borrowing is still high though the weighted average lending rates have declined to 18.58% in September from 22.21% in August.

Gulu requests for city status
Thursday, 25th November, 2010
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By Chris Ocowun
As Gulu marks 100 years of existence as an urban centre, the president of the National Chambers of Commerce and Industry, Olive Kigongo, has joined the town leaders in lobbying for a city status.

“I will do what it takes to advocate for Gulu to become a city,” Kigongo said at the opening of a business exhibition at Pece stadium on Wednesday.

The fair is part of the activities to celebrate 100 years of Gulu town’s existence.

Kigongo reminded the business community to play a leading role in protecting peace by supporting leaders who will guarantee continuity.

Earlier on, McMot Kitara, the vice-chairman of Gulu district, had told Kigongo to plead to the President to grant them a city status.

“Tell the President that we need a city status not as a political tool but for economic reasons,” the vice-chairman said.

Machine for elderly and sick set at airport
Thursday, 25th November, 2010
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By Mark Owor

ENTEBBE Handling Services (ENHAS) has launched its first ambulift to ease the boarding process for the sick, aged or disabled.

Said to be the first of its kind in East Africa, the ambulift is attached to the back of a van to lift passengers on and off aircrafts.

In the past, the elderly, disabled and sick passengers have been physically carried on and off the planes.

“We have started with one ambulift, which will be placed at Entebbe International Airport,” Tytens Georges, the ENHAS chief executive officer, said at the launch of the machine last week.

He added that the passenger cabin in the ambulift was fully air-conditioned, with a first aid kit, oxygen cylinder and an automatic transmission system for a jerk-free movement.

He also said Entebbe had one of the fastest growing passenger rates in Africa.

Kenguy

November 26th, 2010, 11:10 AM

I guess it won't really matter in a few years time. All East African stock/securities exchanges are about to merge.

popa1980

November 26th, 2010, 11:33 AM

I guess it won't really matter in a few years time. All East African stock/securities exchanges are about to merge.

i cant wait ^^

u.g boy

November 27th, 2010, 04:18 PM

Bunyoro becomes Uganda’s Investment hub

By Baz Waiswa

Residents of Bunyoro Kingdom are have started reaping big from
the most wanted natural resource in this land, oil. Tullow Oil Plc, the owners of the Albertine Graben are giving back to the community by offering solutions to social difficulties in the area where exploitation is to commence
Now that the oil firm is ready to start production they have the confidence of giving back to the local people through a series of multi-million corporate social responsibility programmes.
Tullow Oil Uganda which has close to one million barrels in Bunyoro soils has invested heavily in the area by upgrading the murram roads across their area of operations, building health
centres, schools and planting trees to conserve the environment that is threatened by their activities when production starts.

SOCIAL SERVICES
Despite the rich availability of oil, Bunyoro is one of the
poorest regions in the country which lacks modern social services. In the west of Hoima the fishing communities on Lake Albert barely know anything outside their community.
Recently Tullow built a health centre facility at Sebagoro with a maternity
ward worth Shs1.21bn and constructed of Kaiso Primary School worth
Shs821m hence adding to the previous CSR activities.
“We are benefiting from infrastructure like roads and
getting our people to work in skilled and manual jobs with firms
that are in the oil business. Secondly our people will earn a
lot of money selling their farm produce to the people who will come to
work here,” Eng. Yabezi Kiiza, the Prime Minister of Bunyoro Kingdom
told business sense.
OIL MANAGEMENT

The State Minister for Energy, Peter Lokeris told Business Sense that a
new petroleum legal framework that will include the placement of a
resource management and revenue management law is being put in
place. “I want to assure you that government is working to come up
with the most appropriate solution for the country. The sharing of
royalty for petroleum is a subject of the new petroleum legislation
which is currently being drafted by government,” Lokeris said

According to the Minister government wants to ensure optimum national
participation in oil and gas activities to cater for the local
content. This will include having Ugandan nationals and enterprises
participate in the provision of goods and services to the industry.
He said that in June 2010 government commenced a ground
breaking study on Ugandan local content development strategies for the
oil and gas sector that will promote indigenous private sector service
provision and competitiveness.

u.g boy

November 27th, 2010, 04:43 PM

Tullow gives back Shs 5.7bn to Bunyoro

Wednesday, 24 November 2010 18:23
With an estimated two billion barrels of oil confirmed in the Albertine Grabeen, there is a lot of anxiety amongst Ugandans about how much fortune this black gold will bring to the nation.

Amongst the people of Bunyoro in particular, there is a lot of expectations and demands over how well the oil revenues and any other fortunes that are linked to oil will be distributed.

The matter has even been a key political campaign issue; every presidential candidate will not leave Bunyoro without addressing these expectations.

However, according to Peter Lokeris, state minister for Mineral Development, it will be some five years before the planned refinery is complete. It’s only then that meaningful revenues shall start coming out of oil.

Even though government is considering a plant to make heavy fuel oil used in thermal power generation or extracting the gas found in Nzinzi to generate about 80 MW of power, this too will take about three years. Either way, real oil money is a couple of years away.

But for the residents of Buliisa and Hoima districts, it won’t be long before they reap from oil. Many of them have started reaping from the generosity of Tullow Oil, one of the major investors in the oil business in the region.

According to Hon Yabezi Kiiza, the Prime Minister of Bunyoro Kingdom, his people have already benefitted from roads, schools and health centres constructed by the company over the last three years.

“Although real oil money [has not yet started], we are beginning to see a change and we know more is coming,” he told guests at the launch of Tullow Oil’s latest CSR projects. The company is spending Shs 2.16bn on Buliisa Health Centre IV and Buliisa Resource Centre at a cost of Shs 631m.

In Hoima, the company is constructing Sebagoro Health Centre III (Shs 1.21 billion), Kaiso Primary School (Shs 821.4 million) and Kyehoro Primary School (Shs 550 million). Kyehoro Maternity Centre, also constructed by Tullow two years ago, is being expanded to a Health Centre II level, at Shs 550m.

In total, the six projects are worth Shs 5.7bn. Rosalind Kainyah, Tullow Oil Plc’s External Affairs VP, says the projects reflect Tullow’s belief in creating positive partnership and being a “responsible company, a safe operator and a good neighbour.”

Govt under pressure to end Madhvani’s park monopoly
Business
Written by Simon Musasizi
Wednesday, 24 November 2010 18:27
The Aga Khan’s bid to build lodges for tourists in Uganda’s national parks has left government unsure of how to deal with a 30-year monopoly agreement it signed with the Madhvani Group while at the same time allow in more investors into this lucrative business.

While addressing guests at the opening of Chobe Safari Lodge, President Museveni appeared torn between sticking to the terms of the deal his government signed with the Madhvani Group and opening space for competition in the accommodation business.

“I am the one who authorized [the exclusion zone agreement]. We will respect the agreement...but since we are friends, we can always negotiate if there are any changes,” the President said.

He was responding to a call by Madhvani Group for his intervention after Uganda Wildlife Authority announced that they had withdrawn from the Exclusion Zone Agreement affective August 1, 2010. UWA is the statutory body that manages game parks in the country.

“This is illegal and cannot be done in this manner. As investors, we are extremely disappointed to have the goal posts suddenly being changed after we have invested over Shs 60bn in these two national parks,” Mayur Madhvani, one of the group’s directors told the President.

He added: “This, Your Excellence, is very concerning to us and we seek your intervention and guidance on this serious and unjust issue.”

However, the President’s brief response was interpreted by industry players as a fight lost by Madhvani.
“They (Madhvani) should prepare for competition. Government cannot look on as they act as a stumbling block to the industry. This monopoly thing is not logical, everybody knows it,” a tour operator who preferred anonymity said.

Madhvani exclusivity

In 1995, the Madhvani signed an agreement with the government in an Exclusion Zone Agreement for exclusive rights to provide five star accommodation in Queen Elizabeth National Park and Murchison Falls National Park.

Under the agreement, no other investor would set up a lodge/hotel within a radius of 25 miles from Mweya, Paraa and Chobe safari lodges, which the group acquired from government during the privatization exercise.

“One of the reasons we have accommodation problems in the park is the issue of the exclusion zone,” a highly placed UWA officer who preferred anonymity told The Observer.

The officer said this agreement has scared away many potential investors in the parks leaving the Madhvani Group the only provider of accommodation in the parks.

This has impacted negatively on the industry as the accommodation rates remain high with a negative impact on the number of tourists to the parks. The lowest price for a single room at Chobe Safari Lodge, for example, is $155 (about Shs 352,000) per night.

“This exclusion zone thing has really affected the growth of tourism in Uganda. In fact, it has strangled the industry. These lodges are unaffordable by domestic tourists,” the UWA officer said.

In Queen Elizabeth National Park, for example, most tourists stay in Kasese town as a way of cutting down on accommodation costs. But this is usually against their wish because most tourists prefer to stay in the park where they can have a feel of the wilderness.

Last year, when tour operators under their umbrella body, Association of Uganda Tour Operators (AUTO), hosted Maj Gen Kahinda Otafiire as new Minister of Trade, Tourism and Industry, their priority request to government was to revise the issue of monopolies in national parks.

“Most of the tourists who come here want to stay in the park. Government should find a way of getting out of this contract so that other people can also build in the parks and bring down the prices of a room and make the packages cheaper for tourists,” Henry Okecho, then AUTO President said.

“Sometimes you get tourists but the place is full and you have to cancel the trip or find somewhere else,” he added.

During peak seasons, Murchison Falls National Park experiences room shortage of up to 40 percent according to Amos Wekesa, chairman of the Uganda Tourism Association.

Opening the space for other investors is seen as a timely move that will bring down the prices of accommodation in national parks.

The Aga Khan Foundation, which has already secured space for a lodge in Kidepo Valley National Park, is set to be given space in both Queen Elizabeth and Murchison Falls national parks, the most sought after parks in Uganda.

“Aga Khan’s marketing arm is bigger than what government can invest in promoting tourism,” Wekesa said.

He added: “They have a chain of repeat clients who have been to Kenya and Tanzania that they can channel to Uganda.” The Aga Khan Foundation owns Serena hotels in Kenya, Tanzania and Uganda.

jnyerere89

November 28th, 2010, 03:16 AM

u.g boy

November 28th, 2010, 01:39 PM

I don't know about all that, but I do know that Uganda needs to stop mingling in expensive wars. Too poor to be doing that...and so are all other EA countries. Stop mingling with Tutsi/Hutu issues and what is going on in DRC, because at the end of the day, everybody else will suffer. Leave the Hutus and the Tutsis to continue their petty wars. I'm tired of this. You'd think that after the deaths of 800,000 to 1 million people, they would've learned from their deadly mistakes. I guess not. There's nothing that EA can do anymore to make the kids stop fighting. We have done enough. Now we need to move on.

that is true but if m7 nether mingle that war wood still be ongoing . m7 gave training and weapons to kagame these solders then destroyed this Tutsi ,Hutu war and now Rwanda is fine. lra in drc is our responsibility so the Uganda government has to get rid of them but the war in Somali was a waste of time and money to us.

u.g boy

November 28th, 2010, 02:21 PM

http://www.enteruganda.com/brochures/civilaviationamanifesto.html

u.g boy

November 28th, 2010, 10:14 PM

Plans launched for strategic grain reserves to serve EA
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Spraying maize against weeds. Low returns leave farmers disillusioned, thus compromising East Africa’s food security and overall development. BUSINESS DAILY PHOTO.

By Allan Odhiambo, Daily Monitor Correspondent (email the author)
Posted Monday, November 29 2010 at 00:00
Regional farmers hard hit by low return on investment due to price volatility and inefficient market systems are planning for a common strategic grain reserve (SGR) to help curb the situation that threatens to worsen food insecurity in East Africa.

“We are looking up to having a strategic grain reserve for the region so that we can have stable trading platforms that allow for planning and proper price setting based on the fundamentals of demand and supply,” East African Farmers Federation (EAFF) president Phillip Kirori said.

Constant supplies
“Besides ensuring farmers get adequate compensation for their investment, such a scheme would also boost food security by ensuring we have constant supplies in the stores.”

Modalities on the creation of an SGR are still under discussion between the federation and the East African Community (EAC) secretariat even though the proposals are expected to feature at an upcoming regional Heads of State meeting on food security and climate change scheduled for Arusha next month.
Consumers in East Africa rely on cross-border shipments of key commodities from high supply to deficit locations.

Recent studies, however, revealed lethargy among agricultural producers in East Africa thanks to relentless poor earnings despite sharp rallies in the prices of key food items world-wide.

An assessment by the European Union (EU), for instance, revealed that food commodity dealers in East Africa are losing up to 80 per cent of their earnings due to high transaction costs and post-harvest losses.

“Due to low market transparency and inadequate market information systems, the cost of trade currently is estimated to account for as much as 15 per cent of the price of the traded food,” the EU’s Centre for Technical Cooperation (CTA) which handles development issues with the African Caribbean and Pacific (ACP) bloc said in a brief.

Laughable returns
“Some farmers that are able to sell surplus harvest only receive 10 to 20 per cent of the price of their produce because of excessive transaction costs and post-harvest losses.”

This low returns situation leaves most producers disillusioned, thus compromising the region’s overall development as well as food security.
International group Montpellier Panel, supported by the Bill and Melinda Gates Foundation, supports the creation of such strategic grain reserves saying the move could help boost growth in food deficit nations.

AGRA earmarks Shs94b for Africa farmers
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By Dorothy Nakaweesi and agencies (email the author)
Posted Monday, November 29 2010 at 00:00
Uganda and other African countries will benefit from a Shs94.5 billion fund committed by the Alliance for a Green Revolution towards linking small holder farmer’s markets.

AGRA, targeting 4.9 million farmers living across 13 countries, will improve market infrastructure for Africa’s core food staples—cassava, maize, millet, rice, sorghum and grain legumes.

Dr Namanga Ngongi the AGRA president said: “Success for small holder farmers is more than just access to quality seeds and training, a sustainable Green Revolution in Africa is hedged on well-functioning markets that provide reliable outlets for farm produce while also serving as dependable sources of affordable food.”

In Uganda, AGRA is supporting Upland Rice Limited, a rural based small and medium enterprise to reduce transaction costs by providing quality milling services closer to farmers.
The company aggregates farmers to produce, trains them in production and post-harvest handling skills. AGRA is also said to be succeeding in changing the perception of farmers from viewing farming as a lifestyle to practicing it for commercial purposes.

Currently about 20,000 farmers are enjoying price stabilisation and better incomes because the company is also milling, packaging and selling their rice to high-end customers in the urban centres.

For many years, there has been a push for increased agricultural productivity in African countries without an equal push for improving markets.

This has often led to localised excesses that drive down prices.
and cause farmers to abandon new technologies that seem not to add any value to their income.

The result is low production in the next season. In this way the vicious cycle of poverty continues in many African countries and food security remains elusive.

Most African smallholder farmers sell their surplus straight after harvest at minimal gain of 10 to 20 per cent of the price of their product, sometimes because they lack simple utilities like storage facilities to keep their crops until the market picks up.

URA to meet Kenya over new import tax
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Sections of Ugandan traders are complaining of excessive costs cost on imports passing through the Mombasa Port. FILE PHOTO

By Ismail Musa Ladu (email the author)
Posted Monday, November 29 2010 at 00:00
The Uganda Revenue Authority has pledged to mediate between the Uganda business community and Kenya Revenue Authority over problems resulting from the introduction of the cash bond tax.

The tax body is concerned over the introduction of the cash bond tax viewed as doubled taxation on the side of Ugandan importers.

Affecting trade
Speaking in Kampala last week, Mr Paul Kyeyune, URA public and corporate affairs manager said this is an issue that the tax agency will handle because it is affecting Uganda’s trade.
He said: “URA is aware of KRA’s requirement of a cash bond for car imports destined to Uganda; however we have not received formal communication about the subject from Kenya.”

According to Mr Kyeyune, the URA-customs management department has taken up the matter in view of bond requirements which have been affecting other sections of traders as well.”

Last week Uganda’s business community including Kampala City Traders Association and Ugaanda Motor Vehicle Importers’ Association expressed concerns over KRA’s introduction of the cash bond that is viewed as double taxation.

However KRA argues the cash bond will act as insurance on cars that do not reach their intended destinations. The Kenya tax agency says it has been losing revenue through unscrupulous importers who dump used cars on the Kenya market.

Mr Nelson Tugume the chairman UMIDA said in a recent interview that the move would hurt Uganda’s tax revenue and increase the cost of doing business.

Shs14 million tax
The cash bond requires car importers of above 2,000cc to pay about Shs14 million an approximated cost of a Toyata Rav4 on a Kampala bond market.
This is being challenged by importers who argue it makes no business sense and it automatically increases the price of a particular item or imported car.

Meanwhile, the Uganda government is making efforts to encourage importers to use alternative routes through which they can transit their goods and put a halt to the Mombasa Port monopoly.

4 companies to bid for Rukungiri road building
Sunday, 28th November, 2010
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By Caleb Bahikaho

FOUR construction companies were short-listed to compete for the tarmacking of the Rukungiri-Kanungu road.

The construction of the 78km road is expected to commence early next year, according to Eng. John Baptist Muzibira of the Uganda National Roads Authority.

Muzibira was speaking last Thursday during a site visit by the companies and district authorities of Rukungiri and Kanungu.

He said the firms were Dott Services, Progressive Construction, Kolin Construction and Sinyati-Raubex, a South African-based company.

“We have instructions from the Government that work should commence as soon as possible. We shall do everything possible to have a contractor before the end of this year,” Muzibira said, adding that the deadline for submission of tenders was December 8.

He said technical evaluation of the project would take a month before the tender is awarded to the best bidder.

The resident district commissioner, Dan Kaguta, said the construction of the road would improve people’s lives.

He urged residents to take advantage of the construction exercise to make money by selling foodstuffs to the workers.

The project engineer, Doris Aromborach, said a new road of about 14km would be built outside the existing one from Nyakashure in Nyamirama to Ishasha in Kihiihi Kanungu.

Church gives sh580m for sanitation
Sunday, 28th November, 2010
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By Ali Mambule
and Dismus Buregyeya

THE US-based Church of Jesus Christ of Latter Day Saints has given sh580m to Masaka district to improve sanitation.

Eddie Mutebi, the coordinator of the Union of Community Development Volunteers, said the funds have been used to put up 62 wells, 36 pit-latrines and 15 water tanks, among others.

He said they also trained people who would monitor the project.

“We have done all this work in four months,” Mutebi said.

Masaka municipality MP John Kawanga represented Parliament Speaker Edward Sekandi to preside over the handover ceremony of the projects at St. Bruno Ssaza Primary School last Sunday.

Kawanga urged the teachers in the 16 schools that got latrines to ensure that they are used correctly and are kept clean.

“The pupils should clean those latrines so that they learn that washing them is not a punishment,” he said.

Kawanga challenged the Masaka mayor to ensure that every five households have tap water in the next three years.

u.g boy

November 29th, 2010, 10:28 PM

Nokia boosts e-waste removal
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EABW REPORTER

KAMPALA, UGANDA - An initiative aimed at eliminating old mobile phones and accessories in order to protect the environment from electronic waste in Uganda started early last week organised by the worlds' largest handset maker, Nokia.

Nokia has championed the environmental recycling campaign in Uganda where Over 400 phones and 400 accessories were collected at the recycling drive held in Kampala from November 20 - 21, 2010.

Nokia's Senior Sustainability Manager for Middle East and Africa Elisabeth Tanguy said Nokia was pioneering the recycling drive in order to promote efforts to safeguard the environment.

She said, "This is an exciting way of safeguarding our environment from electronic waste by recycling old phones and making them into new products. These old phones and accessories can be used to make bicycles, dental fillings, kettles and many more."

"Uganda is one of the leading users of Nokia phones and products across the world.

This implies that Nokia is well positioned to take a lead role in this key part of corporate responsibility in Uganda," explained Dorothy Ooko, Nokia's Communication manager for East and Southern Africa who was also present for the Take Back and Recycle campaign.

The take-back service, offered free of charge to consumers, will help boost Nokia's leading position inhandling electronic waste (e-waste) from the industry, currently estimated to be between 20m-50m tonnes.

The Ugandan market reflects much of global survey findings which show that very few consumers are aware that they can recycle their disused mobile devices and accessories. Currently the recycling programme has 5,000 collection points in 85 countries- Nokia tries to make it easy as possible for people to recycle old and unwanted devices, chargers and mobile accessories

Phone users in Uganda can continue to take their old phones and accessories to Nokia authorized collection points at Simba Telecom and Midcom where they will receive a recycled article in exchange.
^^^^
Nokia Relaunches Recycling Campaign in Uganda
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By Edris Kisambira, computerworld.co.ug

Nokia has relaunched a recycling initiative aimed at enabling the 11 million mobile-phone users in Uganda to dispose of old and unwanted devices, chargers and mobile accessories.

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The recycling was initially launched in Uganda in 2008 but was not a success. Nokia's phone-recycling initiative will help boost recycling efforts in Africa, where governments are actively looking for ways to find sustainable solutions to the increasing problem of electronic waste.

"Across the continent, we have only registered partial success with the exception of South Africa and Nigeria," said Elisabeth Tanguy, Nokia's senior sustainability manager for Middle East and Africa, at the relaunch event last week.

"In South Africa and Nigeria, I can confidently say we have registered a lot of success, but we are going to do everything possible to see success across the continent, and that is why we are relaunching this campaign in Uganda," Tanguy said.

The recycling initiative offers a structured scheme of eliminating old mobile phones and accessories by dropping them off at designated Nokia centers.

Tanguy said 100 percent of the material in Nokia phones can be used again to make new products, or generate energy.

Nokia has set up collection points at designated centers to collect the mobile phones and accessories, which are then passed to selected companies for recycling in order to ensure proper end-of-life treatment of the e-waste. In Uganda the authorized drop-off points double up as customer-care centers. Dorothy Ooko, Nokia's head of communications for the East and Southern Africa region, explained the Ugandan campaign was not a success partly because people wanted something in return for their old devices.

"Consumers will receive recycled items in exchange for the phone or accessory they bring during the campaign," Ooko said.

Ooko said the Ugandan market reflects global survey findings that show that very few consumers are aware that they can recycle their unused mobile devices and accessories.

Ooko added that Nokia is developing a series of campaigns and activities to give people more information on why, how and where to recycle their old and unwanted devices, chargers and mobile accessories.

The handset maker will also increase the number of collection bins at their care centers, promoting them to create greater awareness. Nokia accepts competitors' products for recycling as well, Ooko said.

According to the GSM Association (GSMA), the number of mobile connections is set to rise by 70 percent to 8 billion by 2020, as the industry builds out a new generation of mobile broadband networks bringing billions of people into the information economy. Tanguy said this will mean more mobile devices and accompanying accessories. Nokia runs 5,000 collection points in 85 countries for its recycling program. If the 4.6 billion people using mobile phones globally recycled at least one of their old phones, the world could save 370,000 metric tons of raw materials, she said.

Computers to monitor Karamoja cattle
Monday, 29th November, 2010
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Mrs. Museveni talking to World Bank country representative Kundhavi Kadiresan (centre) and David Wakikhona, the northern region state minister, during the meeting at Hotel Africana in Kampala
By Raymond Baguma and Patrick Jaramogi

THE Government has launched a computerised method of branding cattle in Karamoja sub-region.

Under the first phase, over 200,000 animals will be given the computer chip and registered. This method is tamper-proof and will assist in curbing cattle thefts in the region, said the First Lady and Minister of State for Karamoja Affairs, Janet Museveni.

She was on Monday presenting a report on the progress made in the implementation of the Karamoja Integrated Disarmament and Development Plan during the Peace Recovery and Development Plan (PRDP) monitoring meeting at Hotel Africana in Kampala.

Mrs. Museveni also said there was ongoing recruitment and training of Karimojong vigilante youth from every sub-county in the sub-region.

“So far, some 1,500 cadres have been successfully passed out and deployed to guard kraals, communities and urban centres,” she said.

According to Mrs. Museveni, the cadres are commanded by the UPDF, while the Government feeds them, provides clothes and pays them a monthly salary.

She said after assessing the success and usefulness of the exercise, more recruitment and training of youth would be carried out.

Also, negotiations are ongoing with neighbouring countries to eliminate cross-border trafficking of illegal arms and ammunition, as well as theft of livestock, Mrs. Museveni added.

She also revealed that progress had been made in provision of water for domestic consumption, agriculture and livestock.

Boreholes have been repaired and a survey is ongoing to establish the number of boreholes in need of repair.

“We believe that this will ensure many communities have access to clean water within a walking distance of about 500 metres,” Mrs. Museveni said.

The meeting was attended by foreign diplomats from countries that support the PRDP programme in Karamoja and northern Uganda and implementing agencies, as well as LC5 chairpersons from implementing districts.

Other projects underway include the construction of valley tanks to provide water for livestock during drought; large scale farming projects, with a tractor-hire scheme to boost food security, as well as the provision of oxen and ox-ploughs to women groups and provision of agriculture extension services in sub-counties.

Mrs. Museveni added that special projects were also underway to provide housing for teachers and health workers, as well as road and public works construction.

She proposed that non-governmental organisations within Karamoja region submit proposals for their projects and present audit reports to promote accountability and ensure value for money.

Prime Minister Prof. Apolo Nsibambi said the restoration of peace in northern Uganda had enabled people to return to their homes and paved the way for development and investment in the region.

He said the Government is now supporting individuals to resettle by providing basic social services like water, health and education.

Nsibambi added that other programmes included distribution of iron sheets, construction of houses for traditional chiefs in Acholi and training youth in the use of hydraform brick-making machines.

Police to buy chopper
Monday, 29th November, 2010
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By Conan Businge

THE Uganda Police has no chopper. The one they had was lost in an accident involving Prime Minister Apolo Nsibambi at the beginning of this year.

The deputy Inspector General of Police, Julius Odwee, said the Force had been hiring choppers whenever the need for them arose.

However, the Force may soon buy a chopper after getting sh8b in compensation for the crashed chopper from the National Insurance Corporation (NIC).

“Unless the Government decides otherwise, we are planning to use the money on buying a chopper,” Odwe said while receiving the compensation from NIC’s managing director, Dr. Segun Akinwale, in Kampala recently.

At the time of the accident, the helicopter was still new, having been acquired in 2008 ahead of the Commonwealth Heads of Government meeting.

“NIC will continue to streamline its operations in order to diligently honour genuine claims,” Akinwale said.

Asked if the claim by Makerere university staff would ever be cleared, Akinwale said the company would follow the decision taken by President Yoweri Museveni to have the issue resolved.

Makerere University’s staff are protesting the Government’s failure to recover their pension funds from NIC.

The university says the company owes sh17.7b to its 2,000 workers, but the corporation said it would only pay sh13b.

The money is said to have accumulated between July 1996 and 2005, when NIC operated the university pension scheme.

Italian giant still wants oil fields
Monday, 29th November, 2010
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Scaroni's Eni is still interested and hopes to be linked to the president by Onek
By Ibrahim Kasita

ITALIAN oil giant, Eni Spa, is still interested in venturing into Uganda’s oil fields, stiffening competition in the nascent oil and gas industry.

Experts predict thi will offer strong investment opportunity for the industry.

The Milan and New York listed firm is expecting to meet President Yoweri Museveni to restore their interest to play a significant role in the development of the oil sector in Uganda.

“Your request to seek appointment to see His Excellency was forwarded to me by his principal private secretary to coordinate the meeting,” Hilary Onek, the energy minister, stated in a letter dated November 10.

The letter was addressed to Paolo Scaroni, the Eni Spa chief executive officer, but also copied to the principal private secretary to the President and Eng. Claudio De Scalzi, the Eni chief operating officer.

“I have now requested H.E to meet you any day at his convenience and will communicate to you after confirmation from his office,” the minister’s letter added.

“I am glad that you have continued to show interest in our country,” Onek stated.

This will not be the first time this major integrated energy company is expressing desire to participate in Uganda’s oil and gas industry.

The Rome headquartered company was the first to enter into a sales and purchase agreement for the acquisition of Heritage’s 50% interest in blocks 1 and 3A at $1.35b.

However, Eni had to legally “withdraw” from the transaction after another UK firm, Tullow, a 50% co-owner of the blocks pre-empted the deal, which was perceived in some quarters to send a contradictory message.

Eni’s desire to re-engage Uganda comes at a time when Tullow is embroiled in $404m tax dispute with Uganda.

Uganda blames Tullow for paying Heritage $1.5b without approving its consent.

The Government has not renewed Tullow’s recently expired licence for block 3A.

Eni’s interest, however, is not limited to this block, but also to any other unlicensed exploration blocks competent authorities see as fitting their hydrocarbons development intentions.

Uganda’s oil and gas operations are moving into the development and production stages, which require the necessary risk capital, access to project finance and long-term investment.

Power generation and transmission facilities may cost $300m, oil processing and transportation equipment $1.5b, refinery development $2b, further drilling $200m and expanded storage and pipeline infrastructure $4b.

Uganda wants to license several oil firms to avoid a monopoly.

The firms must also support the Government’s development strategies, including early commercialisation of the oil resources, value-addition and training of Ugandans in oil-related activities and processing.

This calls for a strong operating experience in refining and pipeline development, which, experts say, Eni has developed over the years.

Uganda has confirmed significant oil reserves in the Lake Albert basin.

It is estimated that the basin has 2.5 billion barrels of commercially-viable crude oil. Oil production at peak will produce around 200,000 to 300,000 barrels of oil per day.

At the current prices of about $72 per barrel, Uganda could earn about $2.5b in oil revenues alone that could equal the current government revenues.

Already, the country is in the process of soliciting investors to build a refinery and associated pipelines in efforts to add-value and create jobs opportunities.

bayviews

November 30th, 2010, 05:59 AM

We all know that Tanzania's has missed out on much of the growth over in East Africa over the past decade or two.

But, with better infrastructure & a concerted effort to stamp out corruption, Tanzania's well poised for an economic comeback.

u.g boy

November 30th, 2010, 04:58 PM

Uganda Plans To Begin Building Oil Refinery In '12

KAMPALA, Uganda (Dow Jones)--The Ugandan government is planning to begin construction of a mini-oil refinery in 2012 that is initially aimed at satisfying domestic demand, Uganda's permanent secretary at the Ministry of Energy said late Monday.

The refinery development will be phased and start with an initial production capacity of 20,000-250,000 barrels-a-day of oil to meet local demand, Fred Kabagambe Kalisa, told Dow Jones Newswires.

"We expect to keep upgrading the refinery as oil production grows and by 2016, Uganda will have a fully-fledged refinery to satisfy local and regional demand," he said, adding that it should reach a capacity of around 200,000 barrels-a-day by 2016.

Uganda has already identified a suitable site for the refinery in Hoima district, in Block 2, operated by U.K.-based Tullow Oil PLC (TUWOY), Kalisa said.

The feasibility study into the building of the refinery is complete and before the cabinet which will soon make key policy decisions on a number of recommendations by Swiss-based Foster Wheeler AG (FWLT) that conducted the study. Some of the key issues to be decided are financing and shareholding structures of the refinery.

According to Kalisa, next year, Uganda will embark on the planning process and identify the main funders of the refinery.

Umeme Uganda to Invest $32 Million in Power Substations, Systems in 2011
By Fred Ojambo - Nov 30, 2010 8:00 AM GMT

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Umeme Ltd., a Ugandan power distributor owned by Actis LLP’s Infrastructure 2 Fund, will invest $32 million next year to improve substations, boost new connections and set up prepayment systems, it said.

The company has invested $96 million in expanding and refurbishing the nation’s electricity network since winning the concession in March 2005, it said in a statement published in the Kampala-based Daily Monitor newspaper today. That’s 47 percent more than the $65 million the company was required to invest by March 1, 2010, according to its concession terms.

Umeme holds a 20-year distribution concession in the East African nation until 2025. CDC Group Plc, an investor in developing countries owned by the U.K. government, is the largest investor in the Actis fund that owns Umeme.

u.g boy

November 30th, 2010, 06:04 PM

Uganda oil refinery to hurt Kenya’s earnings
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Kenya Petroleum Refineries Limited that has for years served the region is likely to suffer loss in earnings. File

By VICTOR JUMA (email the author)
Posted Wednesday, December 1 2010 at 00:00
Uganda will start building its own oil refinery in 2012 to meet local demand and later scale up capacity for exports, a move that is set to radically change the structure of Kenya’s economy.

Uganda will refine 25,000 barrels per day (bpd) to meet its local consumption and later refine up to 200,000 bpd targeting the export markets of Kenya, Rwanda, Burundi and DRC, which are served from the Kenyan market.

This will hurt the earnings outlook of a host of Kenyan institutions such as oil marketers, transporters, Kenya Pipeline Corporation (KPC), Kenya Petroleum Refinery Ltd and the government, which will lose billions of shillings in oil taxes.

Landlocked Uganda relies heavily on Kenya to import a wide range of goods, including refined oil products, but its discovery of 2.5 billion barrels of crude oil deposits is set to change this. However, consumers could gain from cheaper oil, mainly due to the proximity of Uganda, which looks set to cut on the freight and insurance costs that account for a significant chunk of fuel prices in Kenya.

“Between 2012 and 2016, the development of the refinery will be phased,” Mr Fred Kabagame Kaliisa, the PS at the Ugandan Mines and Energy ministry told Reuters on Tuesday.

He added: “We’ll start with limited production to satisfy in-house market demand, then we’ll go into bigger production to satisfy the international market.”

It is expected that by 2016, Kenya’s export of refined oil products to Uganda will cease as the oil-rich country consumes its home-made products, hurting the fortunes of Kenyan truckers, oil marketers and KPC.

Annually, about 115,000 tonnes of petroleum products are transported by road to Uganda, creating business opportunities for transporters.

KPC is estimated to pump 80 per cent or 715,000 tonnes of petroleum products consumed in Uganda annually. Uganda’s announcement that it will not export crude oil is also set to further scuttle a plan to extend KPC’s pipeline from Eldoret to Kampala.

Officials had said this would be redesigned to channel crude imports from Uganda for export and possible refinery at the Mombasa-based Kenya Petroleum Refinery Ltd.

The proposed 320km pipeline with an annual pumping capacity of 1.2 million cubic metres was initially meant to grow Kenya’s export of refined oil products to Uganda but the discovery of oil in the neighbouring nation forced a re-think to instead build a pipeline that would channel crude oil to the Kenyan Coast as a gateway to other markets.

Kenyan oil marketers will lose more than 700,000 tonnes of petroleum products — including liquefied petroleum gas — currently consumed in the Ugandan economy every year.

Uganda is Kenya’s largest export market that took in Sh46.2 billion worth of goods last year or 13.3 per cent of the country’s total exports in the period under review.

Kenya has relied on shipments of petroleum products to consolidate its dominance as the leading exporter to Uganda, a position that is now threatened with Uganda’s announcement of consuming its own oil products.

The hopes of Kenya netting business opportunities in transporting and refining part of Uganda’s crude oil have been dashed by the new policy. This means Kenya can only hope to transport refined products in the next six years. Exploration set to start next year could delay due to a tax dispute between the Uganda and Heritage Oil, a former partner of Britain’s Tullow Oil — the biggest explorer.

u.g boy

November 30th, 2010, 06:27 PM

Turkey sees Uganda major potential partner
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"In this respect, Turkish contracting sector, are ready to operate actively in Uganda and contribute to the development of the infrastructure and superstructure," said Arinc.
Tuesday, 30 November 2010 11:14
Turkish State Minister and Deputy Premier Bulent Arinc said Turkey saw Uganda as a major potential partner in East Africa with its growing economy, rising FDI and foreign trade.

Addressing the Turkey-Uganda Business Forum held Monday in Kampala, Arinc said the global financial crisis showed that protectionism was not a solution to the crisis and the ensuing contraction in the global trade did not help.

"On the contrary the crisis proved that fates of countries are intertwined and promotion of bilateral trade and reciprocal investments are the best remedy against the financial crisis," said Arinc.

In order to overcome the global crisis, Arinc said, Turkey wants to enhance bilateral ties and join forces with its partners.

"Uganda sets an example in macro economic indicators for its region, with its growing economy, rising foreign direct investments and foreign trade and is a potential partner for Turkey in Eastern Africa. This precisely why, Turkey and Uganda as two friends, should enhance their cooperation and combine their economic and commercial potential," said Arinc.

Arinc said the trade volume between the two countries rose from $2 million to $22 million in 2009. "Conclusion of agreements that outline the legal framework of our commercial and economic relations, will serve as mechanisms that will bring us closer to our goals," said Arinc.

He said the proposed model consisted of measures to boost trade and foresaw joint investments and realization of Uganda's infrastructure and development projects with the assistance of Turkish contracting and consultation companies. He said contracting and consultation services sectors should be central to the cooperation between the two countries.

"In this respect, Turkish contracting sector, are ready to operate actively in Uganda and contribute to the development of the infrastructure and superstructure," said Arinc.

u.g boy

November 30th, 2010, 06:44 PM

Gulu Municipal Council Centenary Celebrations
Gulu Municipal Council management is in high gear in preparation for the Centenary Celebrations of her existence of 100 years. This is bringing new development programmes for the new Gulu
Municipal Council which will target all the development bottlenecks identified.

The following are the major priority targets;
Openning new roads and mantaining the old ones in the Gulu Municipal Council jurisdiction.
Focusing on planned urban housing sector.
Embacking on proper National water and sewerage corporation piped water distribution to all parts of the municipal council
Re-development of all Gulu Municipal Council public markets into mordern facilities.
Introduction of individual Division's public health centres,and Maternity Homes.
Introduce Gulu Municipal Council Farms Programmes.

u.g boy

November 30th, 2010, 10:42 PM

American supermarket giant eyes Uganda
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By Walter Wafula (email the author)
Posted Wednesday, December 1 2010 at 00:00
Kampala

Uganda is likely to benefit from the acquisition of South Africa’s Massmart Holdings by Wal-Mart Stores, the giant American supermarket chain.

Through the acquisition, Wal-Mart is expected to extend its experience in connecting farmers with the supermarket’s global supply chain, boosting farmer incomes and help them improve the quality of their produce.

Massmart is a wholesale and retail company behind the Game store in Kampala, but with 287 others in 13 other African countries including; Tanzania, Nigeria, Malawi and Zambia.

On Monday, Wal-Mart formally announced that it was ready to acquire a 51 per cent stake in Massmart Holdings for Shs5.3 trillion or Shs47, 800 per ordinary share. Wal-Mart, the world’s leading supermarket chain by revenue, first announced its intention to buy Massmart on September 27, 2010.

Expand presence
Through the acquisition, the American firm is seeking to expand its global presence and tap into high growth markets like South Africa, Nigeria and Uganda, to bolster its sales and profitability.

This year, Massmart is expected to record up to $6.8 billion in sales from its four divisions including; Dion Wired (appliance and home entertainment specialist), Builders Warehouse, Builders Express, Builders Trade Depot (home improvement formats), Cambridge (food retailer) an, Jumbo Cash and Carry and the Shield buying group (food wholesalers).

Commenting on the prospect of investing in Massmart, Mr Doug McMillon, the president and CEO of Wal-Mart International, said; “This combination fits with our strategy to enter high growth markets in which we can apply our global expertise and generate strong returns.”

Massmart’s Chief Executive Officer Grant Pattison said the desire by Wal-Mart to do business in Africa is a vote of confidence in the strong growth potential of South Africa and the continent. “If approved, the transaction promises to be very positive for the regional economy, facilitating job creation, providing new opportunities for small and medium businesses and improving competitiveness,” Mr Pittison said in a statement on Monday.

While the Massmart board has welcomed the Wal-Mart bid, the firm’s offer remains subject to acceptance by Massmart’s shareholders, customary conditions and relevant regulatory approvals in South Africa. The earliest the deal can be concluded could be early next year.

Police housing project attracts massive interest
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By Dorothy Nakaweesi (email the author)
Posted Wednesday, December 1 2010 at 00:00
Kampala

The Uganda Police land development project has attracted bidders within and beyond Uganda. The project that aims to develop the police housing units was recently launched mainly focusing on Private Public Partnership for the project’s implementation.

During a recently concluded conference in Kampala, interested parties from as far as China, United Arab Emirates, Kenya, Egypt, United Kingdom, South Africa, Turkey and Trinidad and Tobago and Uganda were registered.

The investment worth $ 500 million, which will be in lots of $50 million to $120 million, will see successful bidders contracted to construct modern accommodation facilities on part of the land and the rest of the land be used for commercial investments including shopping malls under a PPP arrangement.

The land put forward for development is 46 hectares.
In his remarks, the Inspector General of Police Kale Kaihura, said: “The Uganda police Force at large, is honoured and humbled by the wider interest in this project.” “I therefore welcome you all in your respective capacities - bankers, financiers, contractors, service providers and well wishers.” However, some of the bidders who attended the conference expressed worry over the PPP Act, which has not yet been passed into law to protect them in case of any arbitration.

Mr John Samuel, the director of Turner and Townsend, a South African company hired to handle the contract said: “We know this project is going to be a success because it has a committed government hand in it.”

Umeme plan to hike power tariffs
Tuesday, 30th November, 2010
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By Ibrahim Kasita

CONSUMERS should brace for high power bills as Umeme, the only electricity distributor, applies for a 15% tariff rise in the first three months of 2011.

The move, if approved by the regulator, will affect Uganda’s economic competitiveness.

In its latest tariff application to the Electricity Regulatory Authority (ERA) for 2011, Umeme wants domestic consumers to pay sh462.4 per unit, up from sh385.6

This implies that for a low-income household with two bedrooms, four lights, flat iron, TV, radio and a small fridge, it will pay an average of sh33,000, up from sh30,000 a month.

For commercial use, which includes business premises such as shops and kiosks, power will cost sh455.36, up from the current sh358 per unit. Small and medium industrial consumers will pay sh457, up from sh333 a unit.

Large industrial consumers will pay sh321.14, down from the current sh330 per unit, while the cost of street lighting will be sh461, up from sh385 per unit.

Umeme managing director Charles Chapman attributed the increment partly to “debt service obligations in the in the lease payment to Uganda Electricity Distribution Company (asset holder) and increase in the Umeme investments.”

“To date, we have invested more than $100m, and we plan to invest at least $32m more in 2011,” he reasoned.

“It is anticipated that Government subsidies will continue to be availed and applied against the power supply price in order to maintain the end-user tariff for domestic consumers at sh385.6.”

Chapman said the computation of the current tariffs excluded the debt service obligations, reducing the level of government subsidies that had to be provided in order to maintain the end-user tariffs.

He said the amount of lease payments Umeme has made to UEDCL in respect to debt servicing obligations exceeded by the net amount the electricity regulator approved by almost $1,989,607.

This means that the regulator had approved $26,493,063, instead of $28,482,330 in lease payment alone.

Chapman added that power supply tariff is mainly driven by the power generation costs.

“The reliance on the more expensive diesel generation, as well as movements in the currency exchange rates, will continue to have a significant impact on the end-user tariffs.

“This will necessitate continued provision of government subsides in order to maintain the end-user tariffs,” he said.

Reactions
The business community yesterday reacted to the proposed hike in electricity prices as “unfortunate” and “outrageously obsene.”

Gideon Badagawa, the Private Sector Foundation boss, said the reason given for the rise of power prices (transportation costs, fuel prices and poor infrastructure) were the same reasons the private sector is facing.

“Why punish the private sector, yet we have had enough of the challenges that have affected our businesses?” he wondered.

Ssebagala Kigozi, the Uganda Manufacturers’ Association chief, called the proposal “obscene and outrageous.”

“We shall fight this outrageous and obscene proposal that is aimed at wiping us out of business,” he said.

Maggie Kigozi, the Uganda Investment Authority chief, also said the proposal was “not good for investment.”

“It is common knowledge that electricity tariffs are the major factor driving cost of business up,” she said.

The acting boss of the Electricity Regulatory Authority, Benon Mutambi, however, noted that the public would be given an opportunity to raise their concerns before a decision is made.

“We shall hold a public hearing to get the views of everyone concerned before making the decision.

“I call upon the public to submit their queries to our offices. We shall consider them,” he said.

Electricity prices have been going up since 2005. In 2005, domestic consumers paid sh212.5 per unit compared to the current sh385.6.

European Union warns on Uganda’s future forests
Tuesday, 30th November, 2010
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Participants picking tree seedlings after the workshop at Kampala Serena Hotel
By Joyce Namutebi

UGANDA’s forest resources are under tremendous pressure from a growing population and economy, the European Union (EU) has warned.

Bernard Crabbe, the head of the rural development section of the EU delegation in Uganda, said the Food and Agricultural Organisation estimates that the current rate of deforestation in the country stands at 92,000 hectares per year.

“Many forests are severely degraded. If the trend persists, the new generations will not have the chance to appreciate the significance of Uganda’s primary forests and their amazing biodiversity,” Crabbe said.

Decisive action, he said, should be taken to tackle the challenges in the forestry sector and to exploit its opportunities.

He was speaking at the fourth Sawlog Production Grant Scheme’s forestry seminar at the Sheraton Kampala Hotel yesterday.

Uganda’s forest cover is estimated at 21%, while the population is said to be over 30 million.

“There is an urgent need to establish timber plantations in Uganda,” Crabbe said.

Initially, he said, the EU supported the National Forestry Authority to set up demonstration plantations: “Together with the Government, we realised that promoting commercial forestry was vital to reduce the pressure on natural resources and to meet the growing demand for wood products.”

Started in 2004, SPGS is a joint initiative between the Government, EU and the Norwegian government aimed at encouraging private sector involvement in commercial timber production.

The scheme provides grants and technical support to investors in timber and certain crops.

Kampala roads for upgrading
Tuesday, 30th November, 2010
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By Florence Nakaayi

KAMPALA City Council is to construct a total of 14.42km of roads under the Kampala Institutional and Infrastructure Development Programmed (KIIDP).

Among the roads to be upgraded are Bukoto-Kisasi, Kalerwe, Kawempe-Mpererwe, Kimera, Makerere Hill, Soweto and Salaama. According to the mid-term review report presented by project coordinator Tamale Kiggundu recently, the roads would be upgraded from gravel to bitumen (tarmac) standard. Other investments include improvement of the 3.56km-long channel and extension of Mpererwe landfill by six acres.

So far, sh741m, out of the sh5b projected to compensate those who will be displaced has been given, Kiggundu said. The Government is responsible for the compensation. He said they are preparing to invite bidders for the channel construction and within three months works would begin.

KIIDP is a US$100m project funded by the World Bank. It is being implemented in three phases running between 2009 and 2018.

Oil refinery works start in 2012
Tuesday, 30th November, 2010
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UGANDA will in 2012 start the phased development of an oil refinery that will initially meet local demand of up to 25,000 barrels per day (bpd) before scaling up to 200,000 bpd, an official said on Tuesday.

Keen on avoiding pitfalls that have bedeviled other sub-Saharan African oil producers, east Africa’s third biggest economy has decided against exporting crude oil.

The government says it hopes refining capacity will guarantee higher earnings, generate more employment and help the country reach middle-income status.

The plant will match other planned refineries in South Africa and Angola to be one of the largest in the region.

“The whole of next year we’ll go into serious planning for development,” Fred Kabagame Kaliisa, permanent secretary at the mines and energy ministry, told reporters.

“That will include getting land and sitting with financiers and interested developers to tie into financing agreements.”

Kabagame said the ministry and Uganda’s cabinet were discussing a feasibility study carried out by Foster Wheeler. The refinery is to be based in Hoima in western Uganda.

Uganda discovered commercial quantities of hydrocarbons in the Lake Albert rift basin along its western border with the Democratic Republic of Congo in 2006. Exploration firms estimate reserves of up to 2.5 billion barrels.

“Between 2012 and 2016, the development of the refinery will be phased,” Kabagame said. “We’ll start with limited production to satisfy in-house market demand, then we’ll go into bigger production to satisfy the international market.”

Kabagame estimated Ugandan demand at 20,000 to 25,000 bpd and said the refinery would later refine for export, producing 200,000 bpd.

Britain’s Tullow Oil -- the biggest explorer in Uganda -- had initially said it would start commercial production in the last quarter of 2011.

In recent months, however, the company suggested a tax dispute between the government and Tullow’s former partner, Heritage Oil, could delay that target.

Kabagame also said on Tuesday that 28 companies -- including several Chinese firms and Italy’s Salini Costruttori -- have expressed interest in building the planned $900b Karuma hydropower dam, which will generate 700 megawatts.

u.g boy

December 1st, 2010, 01:14 PM

Arınç: Turkey wants to support public investments of Uganda

01 December 2010, Wednesday / THE ANATOLIA NEWS AGENCY, KAMPALA 0 0 0 0
Turkish State Minister and Deputy Prime Minister Bülent Arınç said that Turkey aimed to support public investments of Uganda.

Turkish businessmen made contacts in Uganda during our talks, added Arınç who spoke to East African Business Week newspaper.

Pointing out the importance of Turkish Airlines' (THY) holding flights to Uganda, Arınç said that the commerce between Turkey and Uganda could be boosted also by using vessels, trucks and many other ways.

Recalling that a business forum took place with participation of nearly 200 businessmen, Arınç said that business connections were made after mutual talks.

Small & medium scale enterprises made connections in textile, construction materials and health equipment, said Arınç, adding that what Turkey wanted in a large scale was to support public investments of Uganda.

There is big energy gap, especially in electricity, in Uganda, said Arınç adding that Turkey could solve this problem.

He said that Turkey could make investments regarding solution to environment pollution, road construction, infrastructure and all contracting services.

We are about to complete the legal infrastructure, he added.

Noting that Turkey wanted to fulfill some projects in Uganda within the scope of Africa Development Programme, Arınç said that Turkey also wanted to make free trade agreement with five countries in East African Group.

Recalling that Turkey took a step to lift visa mutually with Uganda, Arınç said that Turkey was waiting for Uganda to respond this step.

u.g boy

December 1st, 2010, 03:03 PM

TUSKON's Africa initiative continues, Uganda is next

01 December 2010, Wednesday / BÜLENT KENEŞ, KAMPALA
http://medya.todayszaman.com/todayszaman/2010/12/01/bulent-arinc-tuskon.jpg
Uganda’s Prime Minister Apollo Nisibambi (R) receives State Minister Bülent Arınç, co-chairman of the Turkish-Ugandan Joint Economic Commission.
The Turkish Confederation of Businessmen and Industrialists (TUSKON) has accelerated its trade relations with Uganda by organizing the Turkey-Uganda Business Forum in Kampala, the capital of this African country.

The Turkey-Uganda Business Forum hosted about 40 Turkish businessmen, and national delegations from Uganda also showed great interest in the forum. The forum was organized at the same time as the first term meeting of the Turkish-Ugandan Joint Economic Commission (KEK), whose co-chairman is Minister of State Bülent Arınç.

Uganda borders Africa's biggest lake, Lake Victoria, and its neighbors are Sudan, the Democratic Republic of Congo, Kenya, Tanzania and Rwanda. Uganda, with a population of nearly 33.5 million, consisting mainly of young people, has rich natural resources and a quickly developing economy that presents important investment opportunities for foreign investors. Moreover, the country witnessed economic growth of 7.1 percent in 2009 and is ranked the 83rd biggest economy in the world with a gross domestic product (GDP) of $18.7 billion. Uganda's yearly exports are around $3.7 billion, while its imports amount to $4.2 billion. Main trade partners of the country are the EU with 26.7 percent, Sudan with 14.3 percent, Kenya with 9.5 percent and Switzerland with 9 percent, while its trade volume with Turkey is only $22 million, representing 0.003 percent of Uganda's total foreign trade volume.

The Turkey-Uganda Business Forum, organized by the Turkish Confederation of Businessmen and Industrialists hosted around 40 Turkish businessmen. The forum was organized at the same time as the first term meeting of the Turkish-Ugandan Joint Economic Commission, whose co-chairman is State Minister Bülent Arınç

Uganda's Investment Authority Director Maggie Kigozi mentioned that positive political relations should be reflected in the trade between the two countries during her speech at the Turkey-Uganda Business Forum. “We have rich underground and aboveground natural resources, and the weather conditions in Uganda are suitable for agriculture and livestock breeding for the whole year. Since there are 60 universities in this country, we have no difficulties in finding educated and experienced people. Poverty is rapidly decreasing; Uganda is the fifth biggest economy in Africa,” said Kigozi. She added that Uganda attracted a total of $800 million in foreign direct investment (FDI) in 2009 from the UK, India, Kenya, China and Singapore, while FDI from Turkey -- $23 million in 2009 -- was extremely low compared to these countries.

Kigozi also touched upon the natural resources of Uganda and said the economy's growth is expected to continue due to a recently found oil reserve of about 6 billion barrels. She noted that there are various business opportunities in Uganda, especially in fields like trade, machinery, manufacturing, agriculture, health and the pharmaceuticals sector. Inviting Turks to invest in Uganda, Kigozi mentioned that the state provides tax and investment incentives. She also praised efforts of Turkish businessmen to construct and operate Turkish schools in her country and added that they expect more investments in the field of education.

At the business forum, Minister of State Bülent Arınç also stated that trade relations between Turkey and Uganda are not as good as the political relations. He said Turkey is not satisfied with the current level of trade with Uganda, since there is much more potential to grow. Currently, Turkey is ranked 148th among Uganda's exporting countries, while it is ranked 126th in terms of importing countries.

“Our main goal is to support the economic development of the people in Uganda,” said Arınç. He pointed out that Turkey has the sixth biggest economy in the EU and noted they would like to sign a free trade agreement with the East African Community (EAC), of which Uganda is also a member. “We could pave the way for Turkish businessmen if the legal arrangements take place,” said Arınç. He also stated that Turkish contractors rank as the world's second largest, after China, adding that Turkish construction companies have won contracts for projects valued up to $31 billion in Uganda.

Turkey's ambassador to Uganda, Melih Ulueren, touched on Turkey's rising interest in Uganda and said increasing economic relations between the two nations depends on a win-win situation. He added that the embassy in Kampala opened last March and that Turkish Airlines (THY) has started making direct flights to Uganda's largest commercial and military airport, Entebbe International Airport.

During his speech, TUSKON's General Secretary Dr. Mustafa Günay mentioned that TUSKON has become Turkey's largest business union, with members numbering up to 15,000, and emphasized their interest in various African countries, including Uganda. Moreover, Justice and Development Party (AK Party) deputy Ali Bayramoğlu, chairman of the Turkey-Uganda Interparliamentary Friendship Group, who also made a brief statement at the meeting, said they will carefully analyze investment opportunities in Uganda and determine strategies towards increasing trade relations with the African nation.

u.g boy

December 1st, 2010, 11:26 PM

Uganda, Turkey sign bilateral trade agreement
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By Martin Luther Oketch (email the author)
Posted Thursday, December 2 2010 at 00:00
Kampala

Uganda and Turkey have signed a bilateral trade agreement that will formalise business traffic between the two countries. The signing of the agreement follows a first joint economic commission of a Ministerial session held in Kampala between Monday and Tuesday. The meeting, which included a delegation of Turkish officials, Uganda officials and participants from other East African states, also discussed bilateral trade relationships between East Africa, particularly Uganda, and Turkey.

Trade volumes
According to statistics recorded in the last decade, trade between the two countries has grown from about Shs4.6 billion in 2003 to about Shs51 billion in 2009. The committee focusing on trade and investment, said trade potential between the two countries has not been fully exploited and as such there is a need for a joint vision to strengthen and further develop commercial and economic relations.

The committee agreed to encourage the two countries’ export promotion bodies to assist Small and Medium Enterprise to expand capacity and engage in export trade and facilitation.
Members said SMEs should be provided with skills development programmes and trade information in order to boost their capacity.

Other focus areas
The agreement will also focus on industrialisation with technical support from Turkey, technological transfers to support Uganda’s textile industry and goods standardisation among others. Turkey also agreed to provide training programmes to Ugandan farmers on the issue of modern irrigation systems, agricultural extension and the use of agricultural equipment and machines. The technical session also indentified transport as another key area, which needs cooperation.

Mr Kahinda Otafiire, Uganda’s Tourism and Trade minister, signed on behalf of the Uganda government, while Mr Bulent Arinc, the Turkish deputy prime minister, signed on behalf of the Turkish government.

Umeme explains new power tariff proposal
Wednesday, 1st December, 2010
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By Ibrahim Kasita

POWER distributor, Umeme, has explained that it handed over its tariff application to the Electricity Regulatory Authority for review as required by the law.

“The regulatory authority is obliged to review the respective revenue requirements and thereafter determine applicable tariffs,” Charles Chapman, the Umeme managing director, said yesterday.

“For the 2011 tariff review, Umeme submitted a revenue requirement totaling sh215b, translating into a distribution tariff of sh191 per unit. This is only a part of the total end-user tariff, which is determined by the authority.”

According to Umeme, the electricity end-user tariff is mainly driven by the cost of power generation, including fuel, transport and transmission costs, non-Umeme losses and exchange rate variations.

“The distribution price that we have applied for will allow us to maintain the lowest connection costs in the region, improve and expand the network and implement prepayment metering to our customers,” Chapman said.

“While power supply costs and price have increased significantly over the past five years due to the high cost of generation, Umeme’s contribution to the tariff has decreased by 50% over the past five years.”

The firm said the distribution tariff would fund the 2011 priority investment projects like prepaid metering, loss reduction and safety projects, customer service and debt-servicing.

Chapman said they hoped the Government would continue with the subsidies on the power supply price in order to maintain the end-user tariff for domestic consumers at sh385.6 per unit.

“To-date, we have invested over $100m and we plan to inject another $32m in 2011. These investments have already began to pay off and Umeme is connecting more people than ever before,” he said.

Chapman commended the Government for its efforts in increasing hydro renewable generation capacity in the short and long-term to reduce the reliance on the more expensive thermal generation.

u.g boy

December 2nd, 2010, 02:49 PM

Spear Motors imports Chinese minibuses
Business
Written by Simon Musasizi
Wednesday, 01 December 2010 18:01
Spear Motors Ltd, the local franchise for Mercedes Benz, has started importing buses from China for the local market.

The 15-seater minibuses called King Long are manufactured in China by Xiamen King Long United Automotive Industry Company Ltd. The minibuses are now available at the company’s showroom at Nakawa at $29,600 (about Shs 68m).

According to Gilbert Wavamunno, the company’s sales director, the introduction of King Long minibuses is to enable the company tap into a market segment that is dominated by second-hand vehicles.

“This is a segment of market we were not able to compete in,” said Wavamunno. Minibuses are commonly used in Uganda for taxi business and as private company vans.

The introduction of King Long buses adds yet another range of vehicles for the company that is known for luxurious saloon cars and trucks.

“Through 22 years of efforts, King Long has been hailed as a national vehicle at home and ranked among China’s top brands and famous trademarks,” Wavamunno said.

Founded in 1988, Xiamen King Long United Automotive Industry Company Ltd, commonly known as King Long, is specialized in the manufacture and sale of buses and coaches. Last year, the company sold 15,344 buses.

The advantage of King Long minibuses, according to Wavamunno, is that they are based on existing technology which makes them easy to service.

The importation of King Long buses comes after Spear Motors tested the market with pickups from the same company that are already doing well on the Ugandan market.

Since 2000, King Long has been trying to lay its fingers on the international market. In 2005, the company took the lead to land the European market after having exclusively passed the British Commercial Vehicle Certification (VCA).

Made in China
Business
Written by Moses Talemwa
Wednesday, 01 December 2010 18:07
http://www.observer.ug/images/stories/china.jpg
Kampala is littered with Chinese goods

A shirt that costs Shs 4,000 at Nabugabo goes for Shs 55,000 on Kampala Road

Umaru Kasumba sells about 300 shirts in four hours after opening his shop on Nakivubo Road in the busy downtown Kampala.

Within the same time, Kasumba, who has been in this business for nine years, also sells 30 boxes each containing 24 pairs of shoes (commonly known as nigiina). All these goods are made in China and Kasumba’s customers include local retailers and exporters to Southern Sudan and Burundi.

When Kasumba opens his shop at about 8.30 am, a shirt leaves his stall at Shs 4,000. An hour later and just 200 metres away, the same shirt will be sold at Shs 8,000 near Mini Price Bata on Ben Kiwanuka Street.

A few blocks later, another shopkeeper on Mutaasa Kafeero Plaza on Luwum Street has obtained the same shirt and sells it at Shs 25,000. And that is not the end of the story. A few metres upwards in Mabirizi Plaza, the same shirt goes for Shs 55,000.

In Kasumba’s shop, shoes cost Shs 30,000 a pair but they will fetch Shs 150,000 at JBK plaza along Luwum Street and over Shs 400,000 at the newly opened Prime Complex off Johnson Street.

Kasumba says he is aware of the price difference and explains it as an effort by traders to take advantage of what he calls market ignorance.

“The customers in the “upmarket” areas of the central business district are unaware that the same goods they pay for are available here. They only complain that our goods are fake; so the traders come here buy these goods and take advantage of the customers by selling them at a higher price,” he said.

Chinese wholesalers

Kasumba has never been to China. Instead, he buys his stock from his neighbour Wu Bing, who operates a wholesale store. Wu is a Chinese trader in his late 20s who has been in the country for five years.

Wu Bing imports goods from China which he sells to local traders such as Kasumba. As a result the area is a beehive of unbelievable activity in the morning as shoppers jostle for space with travelers trying to get onto the upcountry buses.

Wu declined to say how much he makes in a day; he only comments that business is healthy. “Business is good here, you can’t go wrong,” he says. Indeed Kasumba says he has to book early to beat competitors to stock.

Wu’s trade relationship with Kasumba masks new trends in business between Uganda and China. Instead of waiting for Ugandan traders to go to China, the Chinese are coming into the country as investors and taking over the wholesale component of trade with China.

Whereas a few big local wholesalers continue to order for consignments from China, a growing number are opting out as the prices quoted by Chinese wholesalers in Kampala are unbeatable.

Kampala City Traders Association (KACITA) Chairman Everest Kayondo says there are no concrete statistics to confirm that more local traders are resorting to local Chinese importers, instead of importing direct, but says he has seen reports of traders who just buy from within, like Kasumba.

“These Chinese traders are hurting our business; they come here and because their government gives them tax concessions, they are able to import at much lower prices which we can’t match; so, it is better to buy here although a few persist and import from China,” he says.

Kayondo adds that the bonus of this situation is that the traders can now avoid the hustle of dealing with clearing agents, the Uganda Revenue Authority and other agents who claim a commission on their business.

Uganda Investment Authority Chairman Patrick Bitature is aware of the phenomenon of traders coming in as investors and has asked immigration to look into it.

“We are not stopping the issuing of work permits per se, but we have asked for stringent measures to ensure that those who come in as investors are coming to establish capacity that is lacking here,” he said.

Either way, it is clear that the Chinese importers serve a huge market in the region and any pretence amounts to a sham. A recent visit to several upcountry markets shows that save for the food, everything else sold here originates in China.

Uganda imports goods worth $250m from China per annum, according to the Uganda Investment Authority and World Trade Organisation figures. That places China as the number one source of Uganda’s imports.

u.g boy

December 2nd, 2010, 10:15 PM

Employers want say on minimum wage talks
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DEMANDING: Ms Ssenabulya addresses journalists in Kampala yesterday. PHOTO STEPHEN WANDERA.

By Faridah Kulabako (email the author)
Posted Friday, December 3 2010 at 00:00
The Federation of Uganda Employers has demanded for representation of labour organisations and trade unions on wage councils that will determine minimum remunerations for workers.
Ms Rosemary Ssenabulya, the FUE executive director told journalists at a briefing in Kampala yesterday that such representations will allow for discussion and negotiation to come up with agreeable minimum wage standards to meet workers’ needs.

“It should not be a matter of deciding a minimum wage by a few government officials. Stakeholders who interact with workers in different sectors and who understand their interests better should be involved,” she said.

On Wednesday, the Cabinet passed the National Employment Policy that will guarantee the rights of workers and set a minimum wage for employees in the country. Under the Minimum Wages Act, the minister of Labour will be mandated to set up wage councils to determine remunerations for workers.

The National Employment Policy that has been under review since 1998 points to a number of interventions needed to resolve challenges facing the labour sector.

Key issues addressed by the policy include procedures that should be followed to put in place a minimum wage, promoting employment for vulnerable groups and strengthening of the department responsible for employment services to regulate, guide, monitor and coordinate activities of various stakeholders involved in employment of Ugandans abroad.

It further recommends the establishment of a Minimum Wages Advisory Board to undertake research on the impact of minimum wages on employment and wage trends in key sectors and how to improve labour and organisations’ productivity.

Uganda last set a minimum wage of Shs6, 000 in 1984 and the country is one of the few nations in Africa which had no comprehensive national employment policy.

Secondary schools revamp starts
Thursday, 2nd December, 2010
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THE construction and renovation of 217 secondary schools has started countrywide.

The 217 schools are part of the 1,400 schools which will be repaired under the World Bank- funded project.

The schools are expected to be completed in May next year.

The move follows the procurement of the contractors, which started in September and is now in its final stages. A statement released yesterday by the education ministry’s permanent secretary, Francis-Xavier Lubanga, said the contract awards would take place in a fortnight.

The construction is part of a 10-year project jointly funded by the World Bank and the Government. The first phase will cost $150m (sh330b) over a three-year period, ending in 2012.

The World Bank has also provided $125m (sh270b) for the second phase and $100m (sh220b) for the third phase, ending in 2018.

During the first phase, 4,297 new classrooms, 41 administrative blocks, 144 libraries, 405 science rooms, 71 teachers’ houses, and 2,296 five-stance latrines will be constructed. A total of 1,864 incomplete classrooms will also be worked on.

The project is to be managed through a decentralised approach, where the procurement of works and goods is delegated to the school boards of governors, with technical assistance from the education ministry.

After the selection of contractors, the funds will be channelled directly to the school bank accounts.
Schools under the project will also receive science kits, chemical reagents and 1.7 million textbooks for the core subjects.

The project is aimed at increasing access, improving quality and enhancing the efficiency of post-primary education.

Meanwhile, the education ministry spokesperson, Aggrey Kibenge, has said President Yoweri Museveni’s pledge of free technical education starting next year is feasible and will spur economic development.

Kibenge said the pledge was consistent with the ministry’s policies and programmes.
He cited the Universal Post-Primary Education and Training, under which the Government provides primary school-leavers free access to secondary education and vocational training.

Kibenge was reacting to media reports that he had said the pledge was unfeasible.

u.g boy

December 3rd, 2010, 01:35 PM

list of companies operating in namanve business park and Kampala business and industrial park (kbip)
the 2000 acre park is going to house 230 different buildings and structure that include ware houses,sopping mall,housing etc.

Table 1: Summary of land offers
No Name of Project Land offer (Acres)
1 Abo Chemical Plant Co.Ltd 1
2 Acacia Properties (A) Ltd 4
3 Aerophoto systems 0.5
4 Africa Polysack Industries Ltd 3
5 Agro genetic Technologies 3
6 Agro Machinery 2
7 Ahmed Raza Foods 2
8 Ahmed Ziwa Enterprises 1
9 AK Oils & Fats (U) Ltd 10
10 AK Plastics (U) Ltd 10
11 Alam Group 10
12 Aliyzeco Industries Uganda Ltd 1
13 Aloe Cure Uganda Ltd 1
14 Aluminium Hollow ware Manufacturers 2
15 Anik Industries Ltd 24
16 Aqua Coolers 1
17 Aquva International Ltd 1
18 Arkright Ltd 5
19 ATX Technology Ltd 1
20 B- ONE Ltd 1
21 Bajaber Millers Ltd 3
22 Bakennu Enterprises Ltd 1.5
23 BakMarc 1
24 Bamico Holdings Limited, Kampala1
25 Barakah Beauty Products 1
26 Biplous Uganda Ltd 1
27 Biyinzika Enterprises 2
28 Bright Investments 2
29 Britania Allied Industries Ltd 4
30 Busingye and Co. Ltd 4
31 Capital Ventures International Limited 3
32 CCS Uganda Ltd 2
33 Chaking Investments Limited 1
34 Chandaria Industries Limited 5
35 Choppies Exim Africa 2
36 City Radiators Ltd 1
37 Comesa Technology 30
38 Commonwealth Business Council 5
39 Corronation Greenfields Ltd 0.5
40 Crestanks Ltd 2
41 D & A Investments (U) Ltd 2
42 Deepa Industries 1
43 Delian Ltd 1
44 DFCU Bank 1
45 Dott Services Ltd 35
46 Dubai Uganda 5
47 Dunavant 1
48 East Africa Institute of Applied Technology 2
49 Eastern Builders & Engineers Ltd 2
50 Ema Properties Ltd 5
51 Enganoo Millers 2
52 Enterprise Uganda 6
53 Eram (U) Ltd 1.5
54 Esco U Ltd 0.5
55 EVG 3D Construction (U) Ltd 3
56 Exclusives (U) Limited 1
57 Experience Uganda (UBK Developments ) Ltd 5
58 Fair Child Investment Ltd 1
59 Fang Fang (U) Ltd / Sogecoa U Ltd 20
60 Farm Engineering Industries Ltd 5
61 Farm Support Ltd 1
62 Farmers Taste (U) Ltd 1
63 Feng Dei Investments Ltd 4
64 Ferdsult Engineering 1
65 Footsteps Furniture 2
66 Friendship Container Manufacturers Ltd 0.5
67 Gannan Company Ltd 0.5
68 Gatsby Uganda Ltd 5
69 General Mouldings (U) Ltd 0.5
70 Gippsland Investments Ltd 0.5
71 Global Comm. Holdings Ltd 5
72 Goal Industries 0.5
73 Golden Harvest Industries 1
74 Golden Industries Ltd 1
75 Good African Coffee 3
76 Graphic Systems Ltd 36
77 Great Lakes Iron and Steel Co. Ltd 5
78 Great Seas (U) Ltd 1
79 HAI Agency Uganda Ltd 1
80 Harriss International Ltd 3
81 Healthcare Management Solutions Ltd 5
82 Herm Enterprises Limited Kampala 1
83 Hima Cement Ltd 5
84 Hot Loaf Bakery 2
85 House of Eden (U) Ltd 2
86 House of Pavings Ltd 1
87 House of Scrap 1
88 Hua Xia Investments (U) Ltd 2
89 Industrial Graphic Systems Ltd 1
90 Intersoft Business Services Ltd 4
91 Interstate Paper Co Ltd 2
92 Interstate Training Centre 2
93 JN Agritech International 6
94 JW Opolot Construction (U) Ltd 3
95 Kahoora Enterprises Ltd 1
96 Kampala Modernity Stationers Ltd 20
97 Kamu Kamu Drilling Enterprises Ltd 0.5
98 Katon Manufacturers 1
99 Kengrow Industries Ltd, P.O.Box 1469 2
100 Kibao Investment Co.Ltd (Cotton seed delimiting plant)2
101 Kibao Investment Co.Ltd (Warehouses) 2
102 Kigezi Steel Company Ltd 2
103 Kingstone Enterprises Ltd 3
104 Kit-tech Uganda Limited 1
105 Kyotera Victoria Fishnets Ltd 1
106 Lake Victoria Fishing Industry 37
107 Leaf Tobacco & Commodities (U) Ltd 1
108 Linknet Agencies 2
109 Lions Club 2
110 Mada Hotels 5
111 Makerere University Private Sector Forum 10
112 Malaysia Furniture Center 4
113 Margherita Industries 1
114 Master woodworks Ltd 3
115 Mazima Engineering & Construction 10
116 MBS Fruit Agencies Limited, Kampala 1
117 Medi Point Industries Ltd. 0.5
118 Meera Investments 20
119 Megha Industries Ltd 2
120 MetroMedia Productions Ltd 2
121 Midliv Machinery and Construction company Ltd 3
122 Ministry of internal Affairs 1
123 Minolacs 2
124 MK Publishers Ltd 2
125 MKP Group of companies 10
126 Modern Agro Uganda Ltd 5
127 Monitor Publications 3
128 Mugala Tailoring & Garmets Ltd 0.5
129 Mukono Bookshop 1
130 Napro Industries Ltd 1
131 National Council for Science and Technology 5
132 National Drug Authority 2
133 National Enterprise Corporation 10
134 National Housing and Construction Company 30
135 National Water and Sewerage corp. 0.48
136 Nationwide Properties 6
137 Nawajo Enterprises 1
138 New Vision Printing & Publishing Ltd 5
139 Nice House of Plastics 3
140 Nicontra Ltd 2
141 Nile Agro Industries 2
142 Nile Plywood Ltd 2
143 Novelty Tannery Investments (U) Ltd 2
144 NutriMix Feeds Ltd 1
145 Oklams Company Ltd 0.5
146 One Way Street 2
147 Oscar Industries Ltd 10.5
148 Partnerships for Renewal Ltd 5
149 PC Max 0.5
150 Pearl Accounting Solutions 1
151 Pearl Engineering Co Ltd 1
152 Pepperoni Pickles Ltd 2
153 Pincas Construct Ltd Civil Engineering and General contractors 2
154 Pinnacle Integrated Resources 0.5
155 Pio Uganda Limited 2
156 Plasnet limited 30
157 Plastofoam Industries Ltd 2
158 Prime General Supply Ltd 4
159 Proclean Services 1
160 Property Services Ltd 10
161 Provident Africa Group 3
162 Rafiki Group 10
163 Rainbow Developers Consulting Association 1
164 Reco Industries Ltd 2
165 Richiencoy Services Ltd 19
166 Riley Industries Ltd 3
167 Roofings Ltd 30
168 Rwenzori Beverages Ltd 5
169 Sadolin Paints (U)Ltd 2.5
170 Sameg Chemical Products Ltd 1
171 Sanaroma Corporation 1
172 Sarak Big Five Club 1
173 Saran Agro investments Ltd 1
174 Sausage King 1
175 Savannah Commodities Co Ltd 1
176 Second Life (U) Ltd 0.5
177 Securex Agencies (U) Ltd 1
178 Select garments 1
179 Shang Industrial Co. Ltd 1
180 Sharma Import & Export (U) Ltd - Pipes 0.5
181 Shepherds Fields &Ponds Kampala 3
182 Shoe Warehouse Ltd 1
183 Shumuk Aluminum Industries Ltd 4
184 Spa Packaging 2
185 Sparko Investments Ltd 1
186 Star Café Ltd 1
187 Sunfruit Ltd 1
188 Sunrise Communications Ltd 0.5
189 Sunshine International & Universal Sanitary Manufacturers 2
190 Super Agro foods 4
191 Superfine Industries Ltd 1
192 Supply Chain Management Services 0.5
193 Surgipharm (u) Ltd 3
194 Tamoil East Africa Ltd 2.5
195 The Cooper Motors Corporation 310
196 The Mehta Group Management Ltd 2
197 The Weekly Observer 1
198 Tile centre 5
199 Tirupati Developers Uganda Ltd (Housing units)5
200 Tirupati Developers Uganda Ltd (Recreation park)5
201 Tirupati Developers Uganda Ltd (Shopping Mall)5
202 Toil Uganda Ltd 0.5
203 Tokyo Construction Ltd 2
204 Tonnet Agro Engineering 0.5
205 Total Uganda 2
206 Toyota Uganda Ltd 5
207 Tropix Technology 1
208 Trupati Development Uganda Ltd (Agriculture produce marketing facility)5
209 TTB Investments 1
210Turkish Cable Manufacturing (TCM) Ltd 5
211 Uganda Baati 30
212 Uganda Batteries Ltd 7
213 Uganda Crane Coffee Limited 15
214 Uganda Electronics and Computer Industries Ltd 0.5
215 Uganda Industrial Research Institute 1
216 Uganda mable and granite Ltd 1
217 Uganda Veterinary Association 1
218 Uganda Women Entrepreneurs 2
219 Valley View Estates Ltd 25
220 Vambeco Enterprises Ltd 1.5
221 vantage communications 1
222 Victoria Seeds Ltd 111
223 Victory Christian center 4
224 Vision Impex Ltd 1
225 Wash and Wills 4
226 Wheelsafe 0.5
227 Winna Classic (U) Ltd 3
228 Your Choice Limited 4
229 Yours Naturally Cooperative society 2
230 Zhang Group of Companies

map of the park
http://www.rrm.co.ug/Maps/RRM-BIG-Arial-Map.gif

u.g boy

December 3rd, 2010, 09:39 PM

Uganda Coffee Exports Rise 15% in November From 2009
December 03, 2010, 10:03 AM EST
MORE FROM BUSINESSWEEK

Dec. 3 (Bloomberg) -- Coffee exports from Uganda, Africa’s biggest producer of robusta coffee, climbed 15 percent last month because of a bigger crop resulting from improved weather, the Uganda Coffee Development Authority said.

Shipments in November rose to 267,506 60-kilogram (132- pound) bags, from 233,511 bags a year earlier, the agency said in a draft report, details of which were provided to Bloomberg News by phone today from the capital, Kampala.

Exports last month were 42 percent higher than the 188,012 bags shipped in October and surpassed an earlier forecast of 250,000 bags by 7 percent, the agency said. Exports in 2001-11 season, which runs through September, may rise by 16 percent to 3.1 million bags from last season because an expected improvement in the weather, the agency said on Sept. 20.

Shipments from Oct. 1 through November rose to 455,518 bags from 432,522 bags in the first two months of last season, according to a tally of the UCDA figures by Bloomberg News.

The country, whose crop is largely rain-fed, received improved rains earlier this year resulting in a bigger crop, according to the authority.

Shipments from the East African nation, which consumes 3 percent of its crop, declined last season from 3.06 million bags in 2008-09 after a drought cut yields, it said.

Output in Uganda slumped from more than 4 million bags in 1996-97 after coffee wilt disease destroyed the crop, according to the authority. New planting and improving farm management may help the country boost output to 4.5 million bags by 2015, the authority says.

Uganda is Africa’s second-biggest producer of coffee after Ethiopia. Robusta accounts for about 85 percent of the country’s annual output and the country earned $243.57 million from the crop last season compared to $291.29 million 3.06 million bags in 2008-09 because of a drop in volume, the agency said.

u.g boy

December 3rd, 2010, 10:17 PM

Voters to candidates: Do this and you have our vote
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By Sheila Naturinda & Nelson Wesonga (email the author)
Posted Saturday, December 4 2010 at 00:00
Kampala

It is crunch time for the presidential candidates. As they traverse the countryside making promises – some, wild - Saturday Monitor felt voters’ pulse and found out that some regions have unique demands that they expect the candidates to commit themselves to address once elected.

Poverty, unemployment, bad roads, health, HIV/Aids, education and market for agricultural produce are cross-cutting issues but some regions have extra demands.

More than 13 million voters are expected to line up in February next year to vote for a president out of the eight candidates on the campaign trail but that vote could become elusive for whoever fails to address issues region-specific issues. The central region has 4.46 million voters, western’s 3.61 million, eastern 3.74 million and northern has 2.13 million voters.

Central tops
The central region, which boasts of the biggest voting bloc encompassing 24 districts, has traditionally been the trickiest.
According to Buganda Kingdom’s Minister for Information, Mr Peter Mayiga, the institution has five key tenets that it expects the presidential candidates to commit themselves to address once elected.

“[The] candidate will not undermine the kingdom or its leader, the Kabaka. Second, the candidates must respect the wishes of Baganda to be governed under the federal system of government. This means sharing power between the central and federal governments. It has nothing to do with paying allegiance to the king,” Mr Mayiga told Saturday Monitor on Thursday.

Buganda has more than once raised issues to do with its claim to 9,000 sq miles of land which the Obote I government expropriated and Mayiga says Buganda wants the next president to respect the borders that constitute Buganda as a geo-polity.

Central region according to Mr Mayiga is interested in politicians who will “deliver the people from poverty in a meaningful way, not just politicking”. “For instance, we do not want leaders who exploit the ethnic disparities of the people of Buganda. We want those who promote the homogeneity of the people of Buganda,” said Mr Mayiga.

The opposition and particularly the Uganda Federal Alliance (UFA) party headed by Ms Betty Namisango Kamya have taken federo as its most important campaign promise—exploiting an issue that President Museveni has failed to resolve.

Ethnic east
The eastern region is perhaps the most ethnically diverse with 39 districts and 112 constituencies. Recent revelations show Busoga as among the most impoverished regions—matters worsened by the recent wave of jigger infestation.

The other cry in Busoga is the claim that its industrial muscle was destroyed in favour of Buganda. Once the hub of manufacturing industries, Jinja, the heart of Busoga, is now a ghost town, largely depending on tourism. And yet, the stickiest issue that could sway voters is how presidential candidates will resolve the impasse over Busoga’s kingship.

“There is a general perception that President Museveni favours Columbus Wambuzi. That has not gone down well with the majority of the Basoga,” said former kingdom prime minister Martin Musumba on phone. The battle for Busoga’s crown has pitted Wambuzi, son to former Kyabazinga Wako Muloki against Gabula Nadiope.

Kyabazinga crisis
According to Mr Musumba, presidential candidates should let the Basoga decide who their Kyabazinga will be. Western Uganda offers emerging national challenges with the discovery of oil in the region. It is also a hot bed of local politics pitting some of the country’s controversial personalities including being home to the two top contenders, President Museveni and Col. Kizza Besigye.

With 26 districts and 92 constituencies—the region serves the largest number of MPs, something that will interest any presidential contender. The key issues in the region include land disputes and illegal immigrants from neighbouring Rwanda.

Land question
Many families in western Uganda do not have land titles the basis for rampant land grabbing and evictions but this issue has been escalated by ethnic tensions in Kibaale between the Banyoro and the Bakiga, and the Bagungu and the pastoralists in Buliisa. Bunyoro is particularly jittery about how oil revenue will be shared having failed to get the government to commit itself on the matter.

In the northern Uganda (which has 23 districts and 58 constituencies) , the key issues are resettlement, access to clean and safe water, reconstruction of schools, construction of health centres and improvement of farming activities.

The 20-year civil war in the region virtually brought every economic activity to a standstill with thousands displaced and hundreds killed and agricultural land turned into wasteland. Voters in the greater Luo region want to be resettled, given construction materials among other social amenities including such basic services like water boreholes.

The Archbishop of Gulu John Baptist Odama said on phone “something must be done about the reintegration of the people and development because the war created a disparity between the north and other areas of the country”.

u.g boy

December 4th, 2010, 11:02 PM

The changing face of Uganda’s supermarkets
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The modern day supermarkets are more organised. FILE PHOTO

By Dorothy Nakaweesi (email the author)
Posted Tuesday, November 23 2010 at 00:00
Kampala

Previously, most Ugandans bought household items from the small shop next door. The supermarkets, which were mainly owned by the Indians, were few and perceived to be for the affluent in society. The opening of Shoprite in early 2000, however, changed the face of the supermarket business in Uganda as more and more foreign chain supermarkets have continued to open shop.

These include: Game, Uchumi, Nakumatt, Shoprite Checkers and of recent Tuskys.
As a result, local supermarket owners have changed strategy to match the competition.
Capital Shoppers, which set off as a shop along Duster Street near Nakasero Market currently boasts of two modern state-of-the-art branches one along Nakawa-Bunya Road and the other at the old shop location. They are also constructing a third branch in Ntinda.
Quality Supermarket is the other local chain with outlets in Ntinda, Old Kampala, and in Lubowa Estates along Entebbe Road. Standard and Ken Joy supermarkets are the other home-grown outfits that are in this business. For now though, local supermarket owners have of late started giving in to competition.

Early this month, Nakumatt Holdings officially took over operations of two Payless Supermarkets in Bukoto and Bugolobi – both Kampala suburbs. Although these are relatively small compared to the main Nakumatt Supermarket at Oasis Mall, management said they are trying to bring their services closer to the people. “These small branches will just keep our name in these locations as we plan to set up bigger stores in the same areas,” Mr Joshua Ng’ang’a, the country manger of Nakumatt Uganda, said.

Although there is still scanty information as to why the management of Payless Supermarket sold off their business (at Shs1.34 billion), information around the business circles indicates that the competition was too stiff.

This is the second take over after another Kenyan-based chain supermarket, Tusky’s, bought off Good Price and Half Price supermarkets, which had expanded to many Kampala suburbs.
Uchumi Supermarket, the first Kenyan chain store to open shop in Uganda in 2002 is also planning to expand in the coming year. “In our strategy, in a years’ time, we will expand countrywide into several branches within Kampala and in the countryside towns of Gulu, Arua and Mbarara,” Mr Jeff Nchaga, the country manager, told Business Power last week.

“We will in the first quarter of 2011 open our second branch along Ggaba Road.”
The growth in the supermarket business has been fuelled by the changing lifestyle of Ugandans and increasing purchasing power. “Successful local Supermarkets have removed the phobia that they are for the rich because now we trust the products which we buy from Supermarkets more than in our village retail shops,” Ms Allen Kizito, a customer found shopping at Good Price Nakivubo said.

Dr Maggie Kigozi, the executive director of Uganda Investment Authority - a government agency promoting investments and economic development, said: “Ugandans now have more capacity to buy, so retail shops are cropping up everywhere and have changed the style of other retail shops into getting more organised.” According to Uganda Revenue Authority, the sector contributes tremendously towards tax in their respective classifications.

Mr Paul Kyeyune, the URA public and corporate affairs manager, said: “Supermarkets’ contribute to the wholesale and retail trade sector not as individual chains.” According to the URA records, both the wholesale and retail trade sector contributed nearly Shs1.19 trillion in 2009/10 up from the Shs1.14 trillion from the previous year.

Given the regional integration that has ushered in the Common Market arrangement where member states are supposed to open their borders to free movement of trade and establish businesses, experts say this could be one of the reasons that are fuelling expansion.
Kenyan investments in Uganda have placed it among the top Foreign Direct Investments into the country; currently ranked at number five according to Uganda Investment Authority records. However, consumers will benefit from the competition with better variety, competitive prices, quality and choice as the providers will strive to excel and attract consumer loyalty.

Mr Henry Richard Kimera, the president Consumer Education Trust (Consent) said: “The takeover of Payless by Nakumatt is a positive move to the chain customers who should now expect variety in services,” Mr Kimera said. He appealed to Nakumatt to look into the supply policy of Payless taking in locally produced products to sustain and support local farmers and producers of consumer goods. “It is healthy competition for the sector provided the strong ones don’t end up dominating the sector and abusing their dominance,” Mr Kimera added.

u.g boy

December 5th, 2010, 11:44 AM

‘Uganda, Turkey ready to cooperate in three main sectors’

05 December 2010, Sunday L
http://medya.todayszaman.com/todayszaman/2010/12/05/sector.jpg
AK Party Rize Deputy Ali Bayramoğlu.
Ruling Justice and Development Party (AK Party) deputy from Rize and chairman of the Turkey-Uganda Interparliamentary Friendship Group Ali Bayramoğlu has stated that Turkish and Ugandan businessmen are now ready to cooperate in three main fields and that the fourth is coming soon.

Bayramoğlu, former chairman of the Independent Industrialists and Businessmen's Association (MÜSİAD), recently attended the first meeting of the Turkish-Ugandan Joint Economic Commission organized as part of the Turkish Confederation of Businessmen and Industrialists (TUSKON) Turkey-Uganda Business Forum in Kampala. Aboard his return plane to Ankara, together with Deputy Prime Minister Bülent Arınç, Bayramoğlu informed Sunday's Zaman about the level of business cooperation between Turkey and Uganda.

Noting that business activities are ready to be launched in three main fields between the two countries, he said Turkish and Ugandan officials have also been working to cooperate in a fourth. When asked about these areas, Bayramoğlu said the priorities are textiles and food, followed by the construction sector. “And our colleagues are still working on cooperation in the field of energy,” he said.

Bayramoğlu added that agriculture and stockbreeding are two more areas the countries may cooperate in. “There are Turkish businessmen experienced in these fields who can make investments here, and Uganda needs these investments as well. There may be business cooperation in related sectors, such as the areas of meat and leather.

He adds that tourism and health are two other sectors where Turkish and Ugandan businessmen can establish contact. Stating that there are only two big hospitals in the capital city of Kampala, he says, as a country that has carried out many health reforms, Turkey can share its experience with Uganda with regard to developments in that area.

Noting that the African country has deficiencies in urban infrastructure and environment, Bayramoğlu says Turkey is also ready to cooperate with Uganda on these issues. “We have met with Ugandan Minister for Water and Environment [Maria Mutagamba]. For example, one very important issue for Uganda is the decontamination of Lake Victoria. This is a huge project, and I told the minister that it could take 50 years. But we are still working on it,” he said.

Stating that municipal services in the African country also need support, Bayramoğlu recalled that there will be general and local elections in February and he thinks municipal services would improve further if a compromise between local governors and municipalities could be reached following the elections.

Referring to an earlier comment by Arınç, who said Uganda is Turkey's main partner in Africa, Bayramoğlu agreed that, as a country neighboring impoverished African countries, Uganda is Turkey's leading partner in Africa.

u.g boy

December 5th, 2010, 07:23 PM

Kenya now in full economic recovery, Uganda still tops
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Shoppers in Nairobi: The country will enjoy a steady economic growth from 4.1 per cent this year through the next four years. File Photo

By Jeremiah Kiplagat (email the author)
Posted Monday, December 6 2010 at 00:00
IN SUMMARY

Kenya 6.5 per cent growth in 2013

Uganda 9 per cent growth in 2013

Tanzania 7 per cent growth in 2013

Kenya is now in full-blown economic recovery, says a new study, with most factors supportive of consistent growth in the next three years, despite some fears of the approaching La Niña weather phenomenon.

Meanwhile, newly oil-rich Uganda’s economic prospects remain the brightest in the region, with growth reaching a high of 9.0 per cent in four years. Tanzania too is expected to enjoy steady growth in coming years.

Much of the economic recovery of Kenya — which was battered by a political crisis after the 2007 general election and the global financial crisis thereafter — is credited to Central Bank measures that increased liquidity in the banking system, which in turn led to higher domestic borrowing, while continuing to support private-sector credit growth.

More so than any other frontier African economy, Kenya has been commended for its successful handling of its borrowing requirements during the global financial crisis.

The move by Central Bank of Kenya eased reserve ratios and the policy rate, consequently lowering the threshold for investment in government securities.

This at the same time enabled microfinance institutions that mobilise deposits to be brought under the regulatory ambit of the CBK, pumping funds into the economy.

The CBK modified the schedules for T-bill and -bond auctions to ensure a sustainable low-interest-rate environment.

The study by Standard Chartered Bank, entitled, “Global Focus – 2011 – The Year Ahead,” and authored by Razia Khan, assesses the response to the crisis of the East African majors Kenya, Uganda and Tanzania.

The report, whose findings have been seen by The EastAfrican, says that the country’s economic target for 2010 will be achieved going by current trends.

It cites one of the key drivers as power consumption, which went up by 20 per cent in the 12 months to September 2010.

Improved tax collections and an upswing in agriculture are identified as ensuring good outcomes. “Tax collections on consumer goods and income tax have all expanded well above the inflation rate,” said a statement by the CBK, adding that Kenya was now on track to achieve Vision 2030.

The CBK moved in to allow for more effective inter-bank borrowing between financial institutions, so the country was able to lengthen its domestic yield curve significantly (to 25Y) and raise more than $1 billion through infrastructure bonds, without forcing interest rates higher.

While Kenya’s progress since then has been halting, tempered by bouts of adverse weather that impacted agriculture, hydroelectricity supply and manufacturing, most factors are supportive of a full-blown economic recovery.

Despite the persistence of weather-related risks, Kenya should make progress, with a return to trend growth.

The report says: “The success of Kenya’s approach to financial-market development has benefited the real economy, and will remain a key growth driver in 2011.

Thanks to a regulatory environment that favours innovation like the one seen, for instance, in the widespread growth of mobile-phone banking, Kenya has had greater success with financial inclusion than many peer economies.”

The proportion of the country’s population with access to formal banking rose to 40.5 per cent in 2009 from 26.4 per cent in 2006.

Kenya’s banking sector was not left out. CBK says 85 per cent of the banks are expected to grow by at least five per cent, a rise from slightly less than 70 per cent of the banks expecting at most three per cent growth during the same period last year.

Kenya’s growth will possibly hit 6.5 per cent in 2013 if the predictions come true. But even before then, the country will still enjoy a steady rise from 4.1 per cent this year through the next four years.

Uganda
Uganda’s economy will remain the strongest in the region reaching a high of 9.0 per cent growth in four years, from 6.4 per cent this year. Tanzania, on the other hand, will grow but at a slower pace than Uganda.

Though its projected growth will be higher than Kenya’s in 2013, the pace will be slower because by then it would have grown by 1.2 percentage points while Kenya would have grown by 2.4 points. Uganda will outgrow its neighbours but by a slight margin of 0.2 points more than Kenya.

One of the key pillars of Uganda’s economic superiority is the expected commencement of oil production before the end of next year.

The exploration is expected to generate $2 billion annually — a huge relief for the country that has for many years been dependent on agriculture and donor financial grants to spur economic growth.

The report says that Uganda, which is cutting down on donor dependency to 25 per cent of the budget in the current financial year ending June 2011 has maintained unwavering growth in the recent past.

It praises the country, set to hold parliamentary and presidential elections early next year, for “its high level of economic liberalisation and ongoing improvement in regional integration,” but warns of imminent inflation as election money finds its way into the markets.

Tanzania
Though it was hard hit by the economic crisis last year, Tanzania has picked up and is now enjoying steady growth.

The country’s GDP rose from an unprecedented low of 5 per cent during the crisis to 6.5 per cent this year. The country was recording a trend of 6-7 per cent growth in the years before the crisis.

This level will be achieved sometime in 2012, as growth is expect to further improve to 6.7 per cent in 2011.

The country, which recently held elections that returned the incumbent President Jakaya Kikwete to power, may not find the going all that easy, though.

Donor assistance will be rolled back this year by $220 million for the financial year ending March 2011 with donors citing dissatisfaction with “domestic revenue collection and governance and business reforms.”

The cut back is expected to play a major role in holding back growth, which will however be powered by mining, agriculture, construction and tourism.
Donors had over the years been providing 40 per cent of the country’s budget, but this year the support is down to 25 per cent.

u.g boy

December 5th, 2010, 10:12 PM

Government to create Shs90b road safety agency
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By Faridah Kulabako (email the author)
Posted Monday, December 6 2010 at 00:00
Kampala

The government is to establish a Shs9 billion National Road Safety Agency that will be tasked with improving safety on roads in order to reduce road accidents, the works minister has said.

In his address at the annual Engineers Registration Board conference on road safety in Kampala on Friday, Eng. John Nasasira said a draft National Roads Safety Policy and a Strategic framework was formulated last year and will soon be tabled before cabinet for approval.

The Shs9 billion initial funds constitute $3.5 million credit fund from the World Bank and $1 million grant from DFID. Eng. Nasasira said the fund will be funded to a tune of Shs4 billion annually from the Uganda Roads Fund.

The Agency will have a responsibility for the delivery of functions across areas of road safety, education, enforcement, engineering and evaluation to provide an environment that maximises safety and provides for efficient use of the road network for all users.

It will also be charged with the responsibility of coordinating, monitoring, regulating and supervising and auditing road safety management in the country. The policy, Eng. Nasasira said, will guide all investments and plans in road safety which is expected to achieve a 50 per cent reduction of the forecast level of road crash deaths in the period 2010-2020.

In addition to being a public health concern, road accidents reverse developments achieved in the country. “Road traffic injuries place a heavy burden on the country’s economy through direct impact on health care and rehabilitation services,” Eng. Nasasira explained. “There is therefore need to appreciate road safety as a significant development issue that requires urgent attention.”

u.g boy

December 6th, 2010, 08:06 PM

Most tourists visited Albertine rift last year – expert
Sunday, 5th December, 2010
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By John B. B. Nzinja

ABOUT 130,000 local and foreign tourists visited the wildlife conservation areas in the Albertine Rift last year.

“This accounts for 98.6% of the tourists that visited all the national parks and other conservation areas in the country last year,” said Onesmus Muhwezi, a tourist specialist with Sustainable Tourism in The Albertine Rift, which is supported by the United States Agency for International Development (USAID).

The Albertine Rift includes Murchison Falls National Park, Budongo Forest Reserve, Rwenzori Mountains National Park, Queen Elizabeth National Park, Bwindi Impenetrable National Park and Mgahinga Gorilla National Park.

Addressing a training workshop at Rwenzori International Hotel in Kasese town on Wednesday, Muhwezi, however, reported a drop from 1,700 in 2008 to 1,281 in 2009 in the number of tourists to Rwenzori Mountains National Park.

Stanley Kanzenze, the chairperson of Rwenzori Mountaineering Services, linked the decline to the receding snow coverage on the mountain peaks, which had created wide and deep gullies. He said the gullies created new huddles which discouraged many tourists from hiking.

Muhwezi said 62,518 tourists were registered by Queen Elizabeth National Park, while Murchison Falls National Park received 39,237 tourists.

Lake Mburo conservation area received 17,521 tourists, while Mgahinga registered 11,806, with Kidepo receiving 2,924 during the same period, according to Muhwezi.

Ashley Silver, a training specialist with the project, said the USAID-funded five-year venture worth $6m (about sh12b), which commenced last year, was aimed at promoting wildlife conservation through tourism.

Ashley blamed the slow growth of the tourism industry in Uganda to the low budget for marketing the sector.

“The budget for marketing tourism in Uganda is too small compared to that of Kenya and Tanzania and the quality of the services in the national parks is also not as good as that in the two neighbouring countries,” Ashley said.

Koen Sneyers, a technical assistant with the Belgium Technical Co-operation in Kasese, announced that Belgium would soon publish a new tourist map of the Rwenzori region.

u.g boy

December 6th, 2010, 10:35 PM

Uganda improves on UN MDGs
Monday, 6th December, 2010
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By Barbara Among

ABOUT 75% of Ugandans have access to safe water, compared to only 53% 10 years ago, according to a report released by the Ministry of Finance yesterday.

The report showed that Uganda had made significant progress towards many of the Millennium Development Goals (MDGs).

The September 2010 report noted that progress had been made, especially in reducing the number of people in absolute poverty and those facing food shortage.

It also showed that progress had been made in gender equality and women empowerment.

The report said the target of gender parity between boys and girls in primary school had been achieved, adding that the country was also on track to meet the target of access to HIV/AIDS treatment and safe water.

There has also been progress in the global partnership for development, notably in ensuring debt relief and sustainability, as well as expanding access to information and communication technology.

However, the Government said progress has “been too slow to meet the MDGs”.

While access to primary education has improved, rates of completion of a full course of primary education have stagnated in recent years.

The Government agreed that several of the health targets, such as child and maternal mortality, access to reproductive health, and the incidence of malaria and other diseases, had also progressed slowly.
Commenting on HIV/AIDS, the report revealed that there were significant challenges in sustaining past gains, adding that new infections had increased.

“Population growth is adding to the number of new infections, as is transmission of HIV between older age groups, especially those that are married or cohabitating.”

The Government also noted that the dwindling foreign development assistance was expected to continue because of the global financial crisis.

The analysis showed that even if there was progress towards many of the MDGs, the benefits were unevenly shared.

“Levels of poverty are more than twice as high in rural areas than in urban areas, and poverty levels remain higher, and have fallen less rapidly, in the northern and eastern regions of the country,” the report said.

The Government acknowledged that special effort is needed if the MDGs are to be met not just in national averages, but also in real progress for all Ugandans.

On maternal health, the Government reported that every day, about 16 women die while giving birth in Uganda.

To combat the trend, it proposed interventions in emergency obstetric care, which addresses the direct causes of maternal death. These are bleeding, sepsis, unsafe abortion, hypertensive disorders and obstructed labour. These are responsible for about 80% of maternal deaths.

The UN MDGs
Goal 1: Eradicate extreme poverty and hunger

Goal 2: Achieve universal primary education

Goal 3: Promote gender equality and empower women

Goal 4: Reduce child mortality

Goal 5: Improve maternal health

Goal 6: Combat HIV/AIDS, malaria and other diseases

Goal 7: Ensure environmental sustainability

Goal 8: Develop a global partnership for development
^^^^
ABOUT 75% of Ugandans have access to safe water, compared to only 53% 10 years ago, according to a report released by the Ministry of Finance yesterday. praise the lord this is really good new i thought it was much less.

New communications board sworn in
Monday, 6th December, 2010
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By Patrick Jaramogi

AN interim board that will head the transitional body of the newly-merged Uganda Communication Commission (UCC) and the Broadcasting Council was sworn in yesterday.

The board is tasked with streamlining the content in broadcasting houses to suit the interests of the consumers.

The eight-member board appointed by ICT minister Aggrey Awori is headed by Dr. Dorothy Okello.

The board will serve for one year and will oversee the drafting of new laws that will harmonise the activities of the UCC and the Broadcasting Council.

Awori said the merger would not lead to any sackings.

“All the staff under contract will remain, but will now be headed by Eng. Godfrey Mutabazi, the executive director,” he said.
Mutabazi said Uganda was the last East African state to merge the two bodies.

Other board members are Dr. Catherine Omaswa, Maria Kiwanuka, Eng. Abdul Omoding, Eng. Miriam Kawuma, Eng. Charles Lwanga and Edgar Tabaro.

The International Telecommunication Union requires all member states to switch from analogue terrestrial to digital broadcasting services by 2015.

Donors give sh23b to develop north
Monday, 6th December, 2010
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By Barbara Among

SWEDEN, Ireland, Denmark and Norway have given Uganda sh23.6b to develop the north.

“Northern Uganda and Karamoja still lag behind the rest of the country in terms of human development.

"We hope that by allocating additional funds to support the development activities of districts, more children will be able to go to school; more communities will have access to clean water and sanitation,” said Danish ambassador Nathalia Feinberg.

Irish ambassador Kevin Kelly said the Government needed to develop a programme compartible with the nomadic Karimojong way of life.

Announcing the donation yesterday at the Prime Minister’s office, the ambassadors of the four countries expressed satisfaction at the progress being made by the Ugandan Government in the resettlement of internally displaced persons (IDPs).

They noted that at least 95% of the population that had been living in IDP camps for two decades have returned home.

“The fact that peace has returned to an area that had been at war is testament to the effort of the Government,” said Feinberg.

The ambassadors also acknowledged the progress being made in the construction and rehabilitation of roads, the provision of water and sanitation facilities and the building of schools.

They expressed satisfaction with the disarmament efforts.
“We are conscious, however, that rearmament is a constant threat and requires careful monitoring,” added Feinberg.

They also expressed concern at the lack of capacity to absorb and effectively deploy funds through the various levels of government, to which Prime Minister Apolo Nsibambi agreed.

Nsibambi said the major challenge was the lack of adequate personnel in the district.

He said the Government committed itself to giving sh100b every financial year to implement the Peace, Recovery and Development Plan for northern Uganda for three years.

Nsibambi said the Government this year budgeted for sh100b, which had now been co-financed with the additional sh23.6b.

Kampala to new get water reservoir
Monday, 6th December, 2010
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A water reservoir is to be constructed at Namboole to address the rampant water shortages in Ntinda, Kireka, Bweyogerere, Nalya, Banda, Kyaliwajala and Namugongo, the general manager of Kampala Water, Eng. Andrew Sekayizzi, has said.

Sekayizzi was reacting to complaints raised by Kiira mayor Mugerwa Mamerito, during a NWSC sensitization workshop held at Jokas Hotel in Bweyogerere on Saturday.

Mamerito said that lack of water had left many families resorting to unsafe spring water.

EA stock integration gets WB $70m boost
Monday, 6th December, 2010
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By David Mugabe

THE World Bank (WB) has committed $70m to support the integration of the stock exchanges in East Africa.

The chief executive officer of the Uganda Securities Exchange said the money was disbursed several months ago to projects that would be initiated at the East African Securities Exchanges Association (EASEA) level and not on a country basis.

“It is essential that the projects have a regional basis whether it is infrastructure, awareness or securities,” said Joseph Kitamirike.

A communiqué from the association said a key pillar of the World Bank funds would focus on supporting market infrastructure projects. EASEA members have already been asked to submit proposals to address resource allocation issues, it added.

At the 17th EASEA meeting at the Commonwealth Resort Munyonyo, Gabriel Kitua, the EASEA chairman, said the vibrancy of the capital markets depended on an active and informed investor base.

Kitua also noted that the major issue before the respective EAC committees was the regional settlement mechanisms. The meeting urged member states to give their input into this process as it stood to develop the capital markets. He said the interconnectivity of stock markets would increase efficiency and liquidity within the region.

“EASEA noted that payment modes during regional IPO was a challenge, with reference to transfer fees levied and the delay in refunds to investors,” Kitua said.

Kitamirike was elected the new East African Securities Exchanges Association boss at the meeting, replacing Gabriel Kitua, chief executive officer of the Dar es Salaam Stock Exchange.

EASEA proposed the utilisation of commercial banks with a regional presence for both the aspects of receipt of applications and transfer of funds.

Each of the five member states was asked to pursue, at national level, the smart order routing system that deals with the benefit of integrating their respective trading systems.

EASEA is also working on making proposals on the minimum benchmark standards on the definition and scope of the East African Stock Broker (EASB).

Kitamirike was elected the new EASEA boss at the meeting, replacing Kitua, the chief executive officer of the Dar es Salaam Stock Exchange (DSE) .

Centum, a company listed in Kenya, is expected to crosslist in the first quarter of 2011 and Standard Chartered Bank is also set to issue a bond.

Uganda maintains top slot in flower cuttings export
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A cuttings farm at Fiduga. PHOTO by dorothy nakaweesi

By Dorothy Nakaweesi (email the author)
Posted Tuesday, December 7 2010 at 00:00
Uganda still maintains the lead position in the export of chrysanthemum cuttings in the world, a position it has held for the past four years. The consistent performance has been attributed to the favourable weather conditions that prevail in the country.

“In total, Uganda is exporting 1.17 billion cuttings, which are at least 80 per cent of the Dutch market thus making it the World’s largest exporter,” Mr Olav Boenders, the managing director of Wagagai (U) Ltd, one of the producers, said.
The country, which was producing about 1,000 tonnes about four years ago is currently producing about 2,000 tonnes annually.

“The extremely good climate conditions characterised by high night temperatures of 18 degrees minimum with good relative humidity and not too high day temperatures have facilitated cuttings production in Uganda,” Mr Boenders, said.

He added that the abundant amounts of good quality water; two rainy seasons per year that provide ample water for irrigation all year round also facilitate the growth of the cutting industry in Uganda.

Chrysanthemum cuttings are a genus of annual and perennial herbaceous shrubs of the family Compositae. There are about 150 species, growing mostly in Africa to serve the European, Latin American and North American, Europe and Asia markets. 70 to 80 species occur in the USSR. The plants are 0.5–1.5 meters tall.

The dark-green leaves are entire or dissected, and the flowers are almost all gathered into heads. Uganda started growing cuttings 15-years ago and has since taken over Holland which has completely stopped production because it’s cold weather condition and expensive labour.

Currently there a five firms which are into cuttings production and these include Fiduga (U) Ltd the leading exporter with about 580 million cuttings, Wagagai (U) Ltd doing 330 million cuttings and 140 million pot plant cuttings.

The others are Royal Van Zanten doing 260 million cuttings, Xclusive cuttings and JP cuttings the new entrants in the market. Altogether, there are 65 hectares of land under cuttings production in Uganda.

According to Uganda Flowers Exporters Association (UFEA), the total revenue cuttings contribute to the entire industry is about 17 million euros (approximately $23 million or Shs52.4 billion)

The five firms involved in the production of cuttings employ over 2,500 Ugandans, women taking a bigger percentage. Most of the cuttings are exports to Holland (95 per cent), and then a bit goes to South Africa, Japan and Russia. A lot of the pot plant cuttings goes to Germany, Holland, Italy, Spain and some to US and Canada.

Challenges
However, just like any other business, the firms are challenged by accessing qualified and trained human resource. “Cuttings require people with expertise but this has not been the case and we have had to invest in training,” Mr Boenders said. He said Wagagai alone earmarks about 20,000 euros (Shs60 million) every year for training.

Getting a reliable and yet affordable airfreight is the other challenge. On average, the aircraft which fly to Holland charges about $2.60 - $2 per kilogramme of cuttings.
“This is way too high compared to what Ethiopia and Kenya pay for the same weight,” Mr Boenders said.

He said for them to break-even, they need to pay $1.6-$1.7 per kilogramme but this will be possible only if the government subsidises the costs like it has been done in other exporting countries in the region.

Power is the other challenge the cuttings farms face in that they have to provide longer days than the normal 12 hour days because cuttings need at least 16 hours of day light to do well.

“Farms need to provide artificial day light for an extra 4 hours per day. Power cuts incredibly increase production costs,” Ms Cate Nakatuga, the acting UFEA executive director, said.

High cost of inputs is the other challenge which they experience and this is because the country is landlocked. Globally, most cuttings are produced in Africa to serve Europe and in Latin America to serve North America.

The producing countries include: Costa Rica, Guatemala, Honduras, El Salvador, Mexico, Brazil, South Africa, Tanzania, Uganda, Kenya and Ethiopia.

Industry
Well as cuttings are realising growth, roses are slowly declining in performance. The once vibrant sector has seen the country’s flower exports dwindle.

According to recent information, current earnings are rated at $34 million (Shs70 billion), which is way below the $37 million out of the 7,500 tonnes from almost zero production in 1992 when the first firm was established.

There are currently 19 flower firms and these include; Rosebud Ltd, Pearl Flowers Ltd, Mellisa Flowers, Mairye Flower firm, , Oasis Flower farm, Ugarose and Uganda Hortec among others.

2010/11 budget approvals done, MoF tightens rules
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The roads sector returned a total of Shs900 billion as unspent balance to the treasury last financial year moreover Uganda’s roads are still in a poor state. FILE PHOTO

By Martin Luther Oketch (email the author)
Posted Tuesday, December 7 2010 at 00:00
The total budget for the financial year 2010/11 is Shs7.5 trillion out of which Shs5.6 trillion (about 75 per cent of the budget) is contribution from domestic resources while Shs1.9 trillion is financing from external sources such as loans and grants as Martin Luther Oketch writes

In what can be described as acting in the spirit of fostering national development, the Parliament has already approved the entire budget for 2010/11. The judicious act is to enable ministries, departments and agencies implement their investment programmes on time.

The early approvals mean that development programmes for the this financial year will possibly be executed on time. The Minister of Finance, Planning and Economic Development, Ms Syda Bbumba, told Business Power last week that the budget approval is based on a vote function mechanism, which is conducted in all ministries, departments and agencies spelling out specific amounts for specific items where money is to be spent.

The total budget for the financial year 2010/11 is Shs7.5 trillion out of which Shs5.6 trillion (about 75 per cent of the budget) is contribution from domestic resources while Shs1.9 trillion is financing from external sources such as loans and grants.

According to the2010/11 national budget, resources from both tax and non-tax revenues will contribute Shs5 trillion and Shs91.5 billion respectively, while loan repayments will contribute Shs59.9 billion. This year’s budget will be about 19.1 per cent of Gross Domestic Product.

Ms Bbumba, however, cautioned that disbursement of funds to respective ministries, departments and agencies will be done based on their work plans meaning that all institutions accessing funds through the national budget have got to submit their work plans to the finance ministry before funds can be released.

With the new developments taking place in the finance ministry, there is optimism that ministries, departments and agencies will become more conversant with new conditions precedent to accessing funds, which include preparation of work plans, recruitment and procurement plans that are meant to enable them implement their activities on time.
Ms Bbumba emphasised value for money through proper accountability and effective public service delivery.

In an interview with Business Power last week, the Chairperson of the Budget Committee in Parliament, Ms Rose Akol Okulu, said: “Parliament also stands ready to make approval of supplementary budgets in case some ministries come with needs that qualify them for additional money.

However, this will only be done after careful scrutiny on the performance of the previous budget.” The issue of Parliamentary oversight of state policies on the budget is of great significance in fostering the various development programmes being undertaken by the government.

The quality of the budget and audit documents determine the transparency and accessibility of the information, which is central to increasing donor confidence in national processes and Parliament’s ability to understand and make recommendations on the budget, evaluate the linkages between the budget, national plans, priorities and oversee expenditures that come under spotlight by both electorates and the donor communities.

Development programmes in Uganda have been hampered by delays, late budget approvals and under performance of budgets despite increased spending by the treasury. Such negative developments have over the year’s stifled progress on the various investment programmes that the government is under taking in the country.

For instance during the fiscal year 2009/10, overall expenditure is projected at about 90 per cent, which indicates fiscal under performance. In part, over the years, poor execution of the budget has been blamed on the treasury for late release of MDA funds whereas on the donor side, it has been blamed on conditionalities.

In a move aimed at stamping out weaknesses regarding fiscal performance, the Ministry of Finance, two years ago, came up with the policy of preparing the Semi Annual Budget Performance Report (BPR), which provides an analysis of budget execution during a specific financial year.

The BPR illustrates performance of resources and expenditures and provides an overview of sector and vote level physical achievements across the government. The finance ministry in the last BPR explains that over the past two financial years, budget reporting has moved to an output-based-approach in Uganda to enable clearer scrutiny on linking performance to financial resources.

Also, the ministry has created the Budget Monitoring and Accountability Unit (BMAU) to monitor core service delivery sectors in line with what has been documented in the performance contracts.

Officials at the finance ministry argue that this has created a strong line of accountability linking secondary and primary data to assess MDA and local government performance.

This has been achieved by the introduction of vote performance contracts and quarterly performance reporting (Form A’s and B’s), and the second achievement is the development of the Output Budgeting Tool (OBT), which is an integrated repository of financial and performance data required in mandatory budget documents for central government votes and performance contracts for local governments. This has enabled comprehensive and uniform reporting to be generated.

Subsequently, all budget documentation and accounting systems (including this report) have been strengthened to link public spending and outputs to track and evaluate expenditures in line with intended targets across different financial years.

A recap on what happened last fiscal year, going by the semiannual budget performance report financial year 2009/10 prepared by the finance ministry, indicates that absorption capacity constraints within spending agencies remain a key challenge to budget execution and affect implementation of government programmes.

As per the 2009/10 budget, aggregate absorption (measured by expenditure as a proportion of releases) was 82 per cent and this under performance is largely on account of the domestic development budget, which accounts for almost 60 per cent of the unspent balances.

There are two main reasons for this poor expenditure performance. The first being poor planning in the procurement process. Ministries, departments and agencies have failed to effectively harmonise procurement plans with annual quarterly work plans in order to effectively manage quarterly cash releases.

The Semi Annual Budget performance shows that spending on investment is much slower than spending on consumption. Analysis of the central government expenditures by economic classification shows that the largest spending constraints were found in investment expenditures, largely from the development budget.

While on the side of central government, MDA’s found it easier to spend on consumption expenditure and for direct grants to autonomous institutions. The finance ministry explains that this trend is characteristic of the common procurement delays that are associated with poor planning for capital investment.

Asked whether it is fair in the interest of the national development for ministries departments and agencies to have large sums of unspent money due to lack of work plans, Ms Akol said public institutions need to strengthen their planning units to limit unspent balances. She also stressed that though the planned investment programmes are being affected by low absorption capacity in the ministries departments agencies, they should be taking back the unspent funds to the treasury so that it is put in the consolidated account for future use.

“The law on this matter is clear. Unspent budgeted funds should be taken back to the treasury, so we don’t expect the accounting officers to hold it in their offices,” she said.
July 1, marked the beginning of this financial year 2010/11 and the bank of Uganda says in September 2010, net liquidity injections on account of government operations amounted to Shs136 billion. The government expenditure amounted to Shs456 billion, which was lower than Shs580 billion realised in August 2010.

The central bank statistics show that tax remittance also amounted to Shs320 billion, which was lower than Shs353 realised in August 2010. Though this fiscal year Uganda’s fiscal stance is expected to be expansionary, there has been inconsistence in flow of government funds as a result of late approvals.

The Director Research at Bank of Uganda, Dr Adam Mugume, said in October 2010, net liquidity injections on account of government operations amounted to Shs64 billion.
During the period of October, government expenditure amounted to Shs397 billion, which was lower than Shs456 billion realised in September 2010 and lower than what was projected at the beginning of the month.

“The shortfall was largely attributed to the delays in approvals of cash limits for spending agencies,” he said.

u.g boy

December 7th, 2010, 10:24 PM

700,000 farmers get NAADS funding
Tuesday, 7th December, 2010
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By Ronald Kalyango

THE Government has released sh38.74b out of sh132.4b for the National Agricultural Advisory Services (NAADS) programme.

The funds, to benefit 106 farmers per parish in all the 112 implementing districts in the countryside, marks the end of a five-month suspension of the programme.

During his Prosperity-For-All programme in Kabarole district in July, the President halted the release of NAADS funds over mismanagement.

Museveni said the over sh120b for this financial year will only be released after a thorough audit and accountability for last year’s funds.

“The President only halted the release of the funds, but NAADS activities have been going on in all the implementing districts,” said Dr. Mwalimu Musheshe, the NAADS board chairman, during a phone interview.

Under the new guidelines, which have been accepted by President Museveni and development partners, emphasis will be put on the promotion of household food security and agricultural commercialisation.

The NAADS executive director, Dr. Silim Nahdy, said the release followed a thorough dissemination of the guidelines among the beneficiaries countrywide.

“We have disseminated the guidelines. All the districts have the capacity to start utilising the resources,” Nahdy said.

He said in the second phase, NAADS would provide improved planting and stocking materials to households for both multiplication and consumption.

To reach as many farmers as possible, the second phase of the programme intends to employ a new concept, the ‘Village Farmer Forum’ concept.

Under the arrangement, all households within a village will be constituted into a development forum to provide the basis for planning for food security.

The support for food security farmers will on average be sh100,000 per farmer for crop-based commodities like maize, rice, millet, sorghum, beans and cowpeas.

The seeds, however, should be sufficient to at least plant one acre. Cassava cuttings should be able to plant half-an-acre, sweet potatoes one acre and banana suckers and Irish potatoes to cover a quarter of an acre.

“Because of the meagre costs of livestock enterprises, the beneficiaries will be fewer,” according to the guidelines.

All the beneficiaries will be required to repay the farmers’ development forum so that others can benefit.
For locally-available inputs at the sub-counties or districts, community procurement will be used to access technologies through the guidance of specialists.

Musheshe said the arrangement under the second phase will ensure food security in the country.
“We believe that once farmers are in control of the programme, corruption which had hampered the success of the programme, will be eliminated gradually,” Musheshe added.

According to documents obtained from the NAADS secretariat, Kibaale district will get the biggest share of the money, while Buhweju will get the least. Kibaale will get over sh2.87b out of the sh132b budgeted for districts, while Buhweju will get sh463.8m.

The funds for the districts are to be used for developing capacity among farmers, procurement and delivery of technology, in addition to delivering agricultural advisory extension services to farmers.
The money will also be used in strengthening market linkages and promoting value addition.

Kibaale will be followed by Wakiso, which will get sh2.7b, and Masaka with sh2.67b.

Other districts getting funds include Lyantonde (sh496.1m), Buvuma (sh521.8m), Luuka (sh522.6m), Rubirizi (sh540m), Kalangala (sh620m), Otuke (sh660m) and Amudat (sh677m).

Museveni, Egypt discuss River Nile
Tuesday, 7th December, 2010
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Museveni (fourth-left) talking to journalists after meeting the Egyptian delegation at Mbale State Lodge yesterday
By Vision reporter

PRESIDENT Yoweri Museveni has said there is no political problem with the sharing of the River Nile waters.

He said the problem is in the tropics, where people cut trees for firewood and invade the swamps to grow crops.

Meeting a delegation from Egypt yesterday, the President said the Nile waters and the environment can be protected by providing electricity to fuel industrialisation so that people shift from agriculture to industry.

The Cairo delegation, led by Egypt’s electricity and energy minister, Dr. Hassan Younis, were in Kampala to strengthen cooperation between the two countries in the energy sector.

During the meeting, Younis also delivered a special message from the Egyptian president, Hosni Mubarak, to Museveni.

Museveni said there were at least five sites on River Nile that can be used for electricity generation including Karuma and Murchison falls.

He added that the Government was interested in the capacity of companies to generate electricity, and in the power tariffs.

Museveni called for investment in other sectors of development in Uganda, including food and meat processing and fertilizer production, saying these were virgin areas of investment.

He, however, said all these need electrocity to lower the cost of running them.

The Egyptian team, accompanied by the Egyptian ambassador to Uganda, Sabry Magdy Sabry, hailed Museveni for linking culture to the middle class through music.

According to a statement from State House, the Egyptian delegation requested for Museveni’s popular rap track, “You Want Another Rap”, saying it was the best way to communicate to the youth and children about the importance of their culture.

The meeting is the latest in a series of talks on the development of the Nile Basin.

In June, Museveni and Faiza Abu Naga, the Egyptian minister for international co-operation, discussed development projects in the Nile Basin, including irrigation.

The Nile basin comprises Uganda, Rwanda, Tanzania, Kenya, Ethiopia, Sudan, Egypt, Burundi and the Democratic Republic of Congo.

Egypt has intensified its engagement with the upper Nile countries since Uganda, Tanzania, Rwanda and Ethiopia signed the Nile Co-operative Framework Agreement two months ago.

Kenya also signed two weeks later, while Burundi and Congo are expected to sign soon.

However, Egypt and Sudan described the agreement as the ‘Entebbe Accord’ and insist “it is null and void”.

Member countries continue to discuss equitable use and management of the River Nile waters.

Gorilla population up in Uganda, Rwanda, Congo
Tuesday, 7th December, 2010
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By Gerald Tenywa

THE population of the endangered Mountain gorillas in Virunga Massif has increased by 26.3% over the last seven years.

A statement from the wildlife agencies of Uganda, Rwanda and DR Congo shows that the current gorilla population in Virunga is estimated at 480, up from 380 individuals.

Virunga Massif comprises of Mgahinga Gorilla National Park in Uganda, Volcanoes National Park in Rwanda and Parc National des Virunga in DR Congo. Gorillas are also found in Bwindi Impenetrable National Park in Uganda.

According to the statement, the annual growth rate of the gorilla population, estimated at 3.7%, matched that of the human population in Uganda.

“The analysis of a census conducted in March and April in the Virunga Massif confirms a 26.3 % increase in the population of mountain gorillas, Gorilla beringei beringei, in this area over the last seven years, with a 3.7 % annual growth rate,” said the agencies.

The census team encountered a total of 480 mountain gorillas in 36 groups and 14 solitary silverback males in the Virunga Massif. Of the 480 gorillas, 352 (73%) were habituated (349 in groups and three solitary males), while 128 were unhabituated (117 in groups and 11 solitary males).

The census was conducted by six teams of 72 people from Rwanda, DR Congo and Uganda, who trekked over 1,000km through the range, documenting fresh signs of mountain gorilla groups.

The last census, conducted in 2006, estimated the gorilla population at 340 in Bwindi Impenetrable National Park.

Jinja stench blamed on tannery
Tuesday, 7th December, 2010
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Jinja Municipal Environment Officer Ernest Nabihamba checks the waste content of Skyfat tannery discharge point
By Frank Mugabi

JINJA municipal authorities last week conducted an impromptu spot-check of the local factories waste management systems in an attempt to locate the source of the foul odour that has troubled Jinja residents over the last three years.

The operation, led by the municipal environment officer, Ernest Nabihamba, went through a number of industries, including the National Water and Sewerage Corporation waste treatment plant.

Skyfat Tanneries Limited, a Chinese firm, failed a series of tests that were conducted in the presence of company officials.

Nabihamba revealed that the factory’s secondary settlement ponds had stagnant liquid effluents responsible for the foul smell that usually fills the town.

“They are failing to control hydrogen sulfide, which is causing the smell,” Nabihamba said.

Although it is an essential chemical in the leather tanning process, hydrogen-sulfide gas produces a “rotten egg” odour if not properly oxidized.

Nabihamba noted that the factory’s oxidation pond was also faulty, while the chemical dosing was far below the recommended measurements.

He said it was insufficient to neutralize the chemicals that produced the bad smell.

He observed that over the last three months, the same firm had problems with accumulated sludge, which affected the efficiency of the treatment plant.

“They had nowhere to dump the sludge. They have now resorted to dumping it in a wetland near Lake Victoria,” Nabihamba said.

He said that as the local authority, they had not sanctioned the dumping.

Sophie Logose, the Director Kampala University, Jinja Study Centre, said the odour threatens the surrounding environment.

“The authorities should come to our rescue,” she said adding that the smell disrupts business.

Sun Jun, the Skyfat managing director, said he had purchased the wetland from a local politician, although Nabihamba cautioned him against conmen who could pit his firm against environmentalists.

Nabihamba said Jinja had about 70 factories and expresses the need for the municipality to hire an environment inspector to carryout routine factory checks and surveillance since he is preoccupied with other duties.

Norwegians sink sh22b into SMEs funding
Tuesday, 7th December, 2010
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Kisaame and Kjell endorse the new $10m credit facility agreement in Kampala last week
By Vision Reporter

THE high business mortality rates amongst small-and- medium enterprises (SMEs) could be checked if individual entrepreneurs pooled savings and investments, Juma Kisaame, the dfcu Bank managing director, has advised.

Kisaame, an expert on SME financing, said many of the problems that plague SMEs could be addressed by what he called the “economies of association.”

“When you come together, you do not only pool funds, but you also pool skills, competencies and talents, which give the group advantages such as access to credit, discounts, better supplier terms and better interest rates,” he said.

He noted that working as a group enhances accountability and governance, which are key to the survival of businesses.

Kisaame was last week speaking at the signing of a $10m (about sh22b) credit line between dfcu Bank and the Norwegian Investment Fund for Developing Countries (NORFUND).

The eight-year facility is aimed at strengthening the bank’s ability to fund long-term projects like commercial mortgages, home loans, leases and SME loans.

It brings to $16m the total credit extended to the bank by NORFUND.

Roland Kjell, the NORFUND managing director, said the funding allows dfcu to make the much-needed intervention in supporting SMEs with affordable access to medium to long-term credit.

“Supporting entrepreneurial individuals or entities to create sustainable business, translates into ripple effects such as savings mobilisation, job-creation and value-addition, which is the only way of stimulating business growth and sustainable development,” he said.

Kisaame said SMEs presented an incredible growth opportunity for the bank.

Uganda’s top 100 mid-sized firms named
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By Ismail Musa Ladu (email the author)
Posted Wednesday, December 8 2010 at 00:00
Kampala

Uganda’s top mid-sized companies were recognised and celebrated yesterday at a colourful ceremony held at the Kampala Serena Hotel. Select Garments, dealers in clothing and accessories, emerged the best-run company according to the Top 100 Mid-sized companies’ survey. Starlight Engineers came second while Pal Supermarket was third.

The survey was initiated two years ago by the Monitor Publications and KPMG, an international advisory firm. It was done in partnership with Stanbic Bank Uganda and Sage Pastel as the regional IT partner. Also, making the top five is Concrete Classic Centre and Security World Technical. The special category saw MultiChoice Uganda and Uganda Crafts 2000 Limited emerge as winners.

About 241 companies participated but only 209 were ranked after submission of all the requirements. It was out of these that the process, which culminated in the nomination of the 100 best-run mid-sized companies, was done.

The inaugural Top 100 project was held last year with BTL Advertising, a public relations and communications firm, being announced winner of the Uganda’s Top 100 mid-sized companies.

Although statistics show that SMEs contribute over 75 per cent of the country’s GDP and provide millions of jobs, data on the sector remains scanty, making it difficult to measure their real impact, a challenge that the survey seeks to address, among others.

KPMG’s Peter Kyambadde said the survey helps identify the fastest growing medium sized companies and acknowledge their contributions. “If we ignored this sector, then the economy would eventually collapse. So this is why we are involved in this project,” he said. This annual survey is open to businesses with an annual turnover of between Shs360 million and Shs25 billion. It is, however, closed to companies listed on the Uganda Securities Exchange, banks and insurance firms.

Monitor Publications MD Dr Githinji Gitahi said: “This project is important because it has identified Uganda’s fastest growing medium sized companies, showcased business excellence and highlighted some of the country’s most successful entrepreneurship stories among others all at the same time.”

EAC states to increase budget by 10 per cent
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By Dorothy Nakaweesi (email the author)
Posted Wednesday, December 8 2010 at 00:00
Kampala

The East African Community heads of state have resolved to boost their budget by 10 per cent. This is in a bid to ensure food security in the region. The plan was among a list of recommendations made by EAC heads of state at the recent 12th EAC Summit on Food security and Climate Change in Tanzania.

The communication issued to Daily Monitor last week read: “The allocation boost, which is expected to be in place by 2015, will also cater for actions within built resilience to weather variability and adaptability to climate.”

A report by African union Commissioner for agriculture, Ms Rhoda Tumusime, says: “Africa imports food worth $33 billion in a period of 5 years supplied by only nine regions, which majorly include: USA, EU and Asia; yet it requires a mere $17 billion to upscale production to cover the imports.”

In the last 18 years, aid for food has been reduced from $3.4 billion to $1.2 billion in 2010 for the continent which is the most effected by climate change worldwide.