Uganda Business, Economy and Infrastructure News

[keithbas]

Power cuts to reduce, Bujagali dam is commissioned today
Publish Date: May 03, 2011

Bujagali hydropower at Jinja. File Photo
By Ibrahim Kasita

President Yoweri Museveni is set to launch $45.14m Bujagali interconnection project increasing access to less expensive and more reliable electricity supply to the national grid.

The project is an associated power transmission line system that evacuates power from the Bujagali hydropower station to the national grid meeting the energy needs for Uganda’s population for social and economic development.

Prime Minister Amama Mbabazi in February commissioned the first 50 MW phase of the Bujagali Hydro Electricity Dam Project at Jinja.

The project was designed to reduce the rate of load shedding and boost the economic growth of the country. Uganda’s economic growth has been affected due to erratic power load shedding as demand outstrips supply with the country forced to use more costly, thermal-generated power.

The delayed construction of Bujagali dam led to an increase in the cost of the project and affected the economy as several businesses made losses. Others closed due to insufficient power supply.

The construction of the US$600mn 250 MW project is owned by Bujagli Energy Ltd (BEL), which is jointly owned by US-based Sithe Global Power LLC and Industrial Promotion Services Kenya Ltd.

The World Bank Group , European Investment Bank, African Development Bank, Netherlands Development Finance Company, German’s KFW and Absa Capital, are among the project financiers.

[keithbas]

Free rural power connections starts July
Publish Date: May 04, 2012

VP Ssekandi (centre), Energy minister, Muloni (left) and PS kabagambe Kalisa after commissioning the Bujagali Interconnection. PHOTO BY ENOCK KAKANDE

By Ibrahim Kasita
Kanyekiro Ssemutundu is a resident of Nyamambo village in Kiruhura with a desire to connect electricity to his premises - house, commercial building with milk cooling system.
His goal has not been achieved for the last five years because he cannot afford the mandatory connection fees (about sh500,000) levied before electricity is wired to the premises.
But now Ssemutundu's dreams will become a reality once the government implements it's promise to provide support for people in villages to connect to grid virtually at no cost.
"One of the major constraints to accessing electricity which we (government) have noted is the inability, mainly of the rural and peri-urban dwellers, to afford connection costs," President Museveni observed Thursday. .
"Yet there cannot be the desired transformation unless people are connected. Government together with some development partners is starting a subsidy scheme to ease the burden of high upfront connection costs," announced the president in a speech read by his Vice President Edward Ssekandi.
Museveni said the scheme will start "modest" in the next financial year (starting this July).
This was during the launch of Bujagali Interconnection Project at Kawanda Sub-Station in Wakiso. The Project is an associated power transmission system financed by the African Development Bank, Japan and the Government.
The project will provide transmission of power from Bujagali Hydropower Station to the nation grid.
At the moment the project is currently evacuating 100 MW from the 250 Bujagali hydropower station. Uganda has had an acute shortage of electricity which has negatively affected the economy and well-being of citizens.
But completion of the Bujagali Hydropower plant will deal with the acute power shortage replacing expensive thermal generation power that had cost a lot of government subsidies.
"Access to affordable, reliable and adequate energy to meet the ever increasing household, commercial and industrial demands is a major priority of the National Resistance Movement," Museveni stated. "Unemployment can be addressed through increased investments in the country."
The President called for "a more aggressive programme put in place by the Umeme in the next seven years and achieve a distribution loss target of at least 15% from the current 27%.
Patrick Khaemba, the AfDB resident representative in Uganda, said the launch was "a landmark" and "a milestone" towards the provision of electricity supply to the people of Uganda.
"This project will benefit all Ugandans by providing reliable and cheaper electricity which will in turn promote development and improve people's living standards," he said. The public has been requested to safeguard the investment against any form of vandalism.

[u.g boy]

Blossoming supermarkets
SATURDAY, 05 MAY 2012 10:09 BY TRACY GWAMBE & JULIUS BUSINGE

A growing middle class prefers supermarkets but the future of small shops for the poor is at stake

Godfrey Kirabo, 45, does all his shopping exclusively at Shoprite.

“It is convenient for me to just enter the supermarket look at the price of what I want, pick them, pay to a cashier and then walk away,” says Kirabo, who does his shopping thrice a month at the same store.

“You don’t need to bargain and there is no congestion. Above all their products look smart and healthy.” Additionally, he said, most kiosks and small shops do not meet the standards and some often cheat customers because their weighing scales are not accurate.

Kirabo is one of the hundreds of Ugandans who are now exclusively doing their shopping in large stores notably supermarkets, which has made it a booming business. In recent years, the country has attracted many investors who have sunk millions of dollars to tap into a bludgeoning high income class.

However, industry experts worry that the high rise in the numbers of these stores may in the long run completely phase out kiosks and small shops thus affecting the livelihoods of the poor who depend on them for survival.

Last month, another supermarket - Mega Supermarket – opened in the city centre. According to its proprietors, the store is one of the largest in East Africa and operates on several floors with parking that can accommodate more than 300 cars.

This is the second large store to open in a period of three months after Woolworth from South Africa launched its operations in Naalya, a Kampala suburb in January.

The entry of these two large stores adds to a number of others that opened several years ago. Shoprite and Game Stores, both based in South Africa, were among the first stores to open in Uganda. The other supermarkets are Kenya-based Uchumi, Nakumatt and Tuskys, while the indigenous Capital Shoppers, Quality Supermarket and Kenjoy among others; have also taken root. Industry experts say the launch of new stores, which operate alongside small and medium stores, comes with a lot of unfulfilled expectations for manufacturers and stiff competition in the market. On the plus side, however, they provide many employment opportunities, more revenue, quality products and the provision of relatively cheaper commodities to the shoppers.

“These supermarkets are set up to cater for both individuals and the country at large in terms of job creation which leads to the development of the country,” Mwijukye, the manager of Mega Supermarket, said in a recent interview. He said their supermarket imports about 45% of its merchandise, while the rest is procured locally from over 50 suppliers – supposedly a big boost to local production and hence higher household incomes. They also provide jobs to about 100 people.

Mega Supermarket, Mwijukye said, would outgun the competition by maintaining the best customer care practices and providing the best quality goods at pocket-friendly prices.

Stiff competition

The new fancy entrants are an obvious threat to their older counterparts. But the older ones have devised another strategy - taking services nearer to the shoppers by opening smaller branches.

“People are no longer going to the kiosks. Supermarkets have been moved closer to people to make sure that they can enjoy the services better without having to travel from one place to another in search of what they want,” Jeff Nchaga, country director of Uchumi supermarket, said.

Uchumi launched its operations in October 2002 with only one branch at the Garden City. The supermarket has now opened more branches at Kabalagala while another will soon be opened at Namasuba on Entebbe Road (Freedom City) and another in Natete.

“We want to start doing what the developed cities are doing. We have to establish more branches in areas where the people live,” Nchaga said.

Nchaga said most of their products are bought locally from Ugandan suppliers who import the same products. Uchumi employs over 600 Ugandans who work alongside Kenyans.

Shoprite, which opened its first branch in Uganda in 2000, says they are also not worried about the competition. Shoprite, according to an official, constantly strives to offer consumers the lowest possible prices. “We often forfeit profit on basic food items, such as bread, in order to assist customers during difficult economic times,” a spokesperson said in an email.

The Group employs more than 350 Ugandans and provides jobs to more than 90 other Ugandan service personnel such as security guards and cleaning staff.

Shoprite anticipates local entrepreneurs to expand production in the near future – a development that would reduce their dependence on imports as more locally manufactured items become available. For example, 70% of fresh produce sold in Shoprite are sourced from local suppliers.

Ali Mufuluki, the CEO of Woolworths, said their expansion drive to Uganda is driven by the fact that the country has high potential to grow its economy in the near future. “The Ugandan economy is growing very fast, which drives our need to deepen and increase our grand presence in the country,” Mufuluki said at the launch of the store early this year.

To Michael Kiwagama, Game’s administrative manager, the main concern is over concentration of supermarkets. He told The Independent that supermarkets are making a mistake to be located in the same places. “The location also matters,” he said, “but they are opening in places where others already operate. That means sharing the small market and consequently reducing sales.” Kiwagama however says the market is growing and the opportunities are still available. “So we have no problems with the competition,” he added.

Game, which started its operations in Uganda in 2004 at Lugogo, imports about 80% of products while the rest are bought within Uganda from local producers.

Complaints, anxiety

Owners of small shops and kiosks seem not to be worried about being outcompeted by supermarkets. “Even if the trend of supermarkets is growing, we are still in business,” Sarah, a shop keeper in Bwaise said. “Small shops came to the market before these large stores. And some of the supermarkets just grew out of small stores to become what they are now.”

Some shoppers also say the supermarkets are not attractive to the poor – who are the majority – who prefer to buy essential commodities in smaller amounts that supermarkets do not offer. It is thus cheaper and more convenient for the majority of Ugandans to buy from kiosks and shops where one can get a half a kilo of sugar or a piece of soap.

Joan Namusoke a shopper, told The Independent that she has never bothered to shop in supermarkets because she has found them to be too expensive for her. “Supermarkets are for the rich,” she argued. “They are so expensive for me.” She said she would rather go to Kikuubo or to small shops and kiosks where she can buy in smaller quantities that she failed to find in the supermarkets.

Nchaga however, said supermarkets were growing because there is an increase in the number of middle class who now prefer shopping in supermarkets to shops and kiosks.

Ordinarily, the rise of supermarkets would have meant a ready market for local manufacturers. However, a policy analyst at Uganda Manufacturers Association told The Independent that manufacturers are not benefitting from the increasing number of supermarkets as it was anticipated.

The analyst said they are planning to lobby for a policy that mandates supermarkets to import a specific percentage of products so that local producers can be protected. “Our local industries are not benefiting,” he said.

He added that they have had cases where local suppliers have been complaining that supermarkets are not paying them on time, which has discouraged some from signing contracts with them. “Supermarkets tell them that payments have to be approved from at the head office outside the country - something that takes a lot of time,” he said. “We need a policy that covers all these issues.”

Also, while the increasing number of supermarkets is good for the government in terms of revenue collection particularly VAT, he said they could hurt the future of kiosks which cannot compete with the standards of supermarkets.

“We do not want to see kiosks collapsing because a good number of people depend on them. So we need a policy that can help balance the industry to benefit both small and large stores,” the analyst said.

However, given the fact that Uganda is now part of the East African Common Market where there is free movement of goods and capital, it remains to be seen how this policy would be implemented.





Customers can save money with the Quality bonus card-Quality Supermarket Supplement
Publish Date: May 05, 2012

Clients can use only a percentage of their total points to pay for their items
By Joel Ogwang

Alongside accepting VISA and Master cards as mediums of convenient trading, Quality Supermarket has a unique scheme intended to make shopping a mesmerising experience for all its customers. The quality bonus card is a reward to customers for their loyalty, support and friendship with the hypermarket.

Apparently, upon completing purchases, a customer with a card earns a 3% discount off the total amount he or she has to pay for the merchandise. This goes to the card, which can later be redeemed in form of goods worth of the points accumulated over time. The more a customer shops, the more points he or she accumulates, which can be redeemed at convenience and time of choice, says Diana Mukunde Baguma, the Quality Supermarket director.

“It has benefitted many parents, especially in today’s hard economic time when there is a general price increment on almost all commodities. The bonus card is like a savings scheme. Everytime a customer shops with us, he or she saves,” he says. For new customers without the bonus cards, cashiers direct them to the customer care desk from where they register.

“When you register, we get your details and give you a card in form of swipe card,” says Charlotte Kukundakwe, the general manager. “From then on, we keep updating customers on what is on offer like during the Christmas seasons and back to school periods.”

Process
The bonus cards are swiped on card readers that reveal the points a customer has amassed over a given period of time. The card reader also displays the customer’s identity.
While some supermarkets operate a similar scheme but offering mouth-watering rates of up to 10% that is covered by hiking commodity prices, Quality Supermarket rates are genuine and intended to benefit customers of modest or humble statuses.

“We put a fair percentage that is on offer on the shelves. We do not cheat customers by lying with a high percentage on the bonus card and cover-up with higher prices for our products,” she says.

Customers have the freedom and luxury of using only a percentage of their total points to pay for their items. For example, a client whose bonus is sh50, 000 can decide to use only sh20,000. This means he or she would pick commodities worth the amount free of charge, yet retaining the balance. For customers who want to check their bonus points, the state-of-the-art shopping centres welcome this.“If you have been shopping and want to know what is on your card, we give you a print out free of charge,” says Baguma.

The bonus card scheme has benefitted parents, especially during the back to school times when there are many pressing and competing needs and demands from children and other sources amid limited resource envelops.

Mary Tumukunde, a pioneer shopper at the Quality Supermarket’s Lubowa branch is grateful to Quality Supermarket for the scheme. “I once lost sh50, 000 while on a boda boda going to shop,” she says. “I was awestruck, but when I got a print out, I had sh45, 000 which helped me pay for all I wanted to buy!”

The bonus card scheme is being decentralised in all the four Quality Supermarkets branches on Martin Road, Ntinda, Lubowa and the newest Kyaliwajjala branch. “We are moving away from doing business in the city centre to take services nearer to our customers so they save time and money they would have spent in travel fares,” says Baguma. “By doing this, we are making shopping an experience worth doing always.”




Customers are king at Quality Supermarket-Quality Supermarket Supplement
Publish Date: May 05, 2012

A customer enjoys a shopping experince at Quality Supermarket in Ntinda
By Joel Ogwang

Behind every successful organisation, is a team of dedicated and hardworking staff, goes a management function adage. However, for Quality Supermarket, there is an extra edge to its success; customers.

These form the bedrock of the business entity’s success.

Unlike the traditional coining of customers to mean the sellerbuyer co-existence, the enterprise’s close-knit relations with suppliers have ensured non-stop growth.

According to Diana Baguma, the director, Quality Supermarket boasts of 100 suppliers and vests its success in part to suppliers’ leniency.

“Our suppliers give us good terms. We hope to do better business with them, especially as we continue growing and providing them with better services and products,” she says. Baguma adds that Quality Supermarket’s rise has not been an exclusive affair; it is an inter-play of different actors including the directors and staff, suppliers and, above all, buyers.

The suppliers, meanwhile, played different roles right from the construction works, shipping and stocking of the shelves. “Our buyers have also been loyal to us. We thank them for the good relations and pledge to maintain our warm relations with them,” she notes.

But, while Quality Supermarket credits its customers for their tremendous contribution to its successes, buyers and local communities are grateful for the supermarkets emergency. This is owing to the supermarket’s vision of taking quality services to its customers in line with its motto; shopping made easy!

“I used to travel to Shoprite or Game stores, incurring transport costs and time to buy commodities, for restocking my shop” says Musa Katende, a shopkeeper. “With Quality Supermarket a stone’s throw away from my shop, restocking is now easier, timely and convenient more than before.”

For Isaiah Saire, a boda boda cyclist, there is now more business as more customers flock to buy merchandise from the supermarket. “Many of my customers are always going to the supermarket to buy items,” he says. “That is my opportunity to make money as I transport them.”




From grass to grace, Quality Supermarket has proved-Quality Supermarket Supplement
Publish Date: May 05, 2012


By Joel Ogwang

Tracing the origin of Quality Super-market, one of the most prosperous business ventures by Ugandan entrepre-neurs, is testament to why determination, hard work, deftness and, above all, luck, are pertinent ingredi-ents for success.In fact, the tale of its emergency is scintillating, rendering credence to an axiom- ordinary people do extra-ordinary things.It started with a young couple in 1980 setting up a grocery on Plot 14, Mar-tin Road in Old Kampala.

There aim was to meet customer’s subsistence needs. Swimming past the storms that ‘murder’ most local enterprises even before their first birthdays, Quality Supermarket has been grown into a multibil-lion investment. Whichever way one looks at it, Eng. Apollo and wife, Mary Mutungi, pulled-off an extra-ordinary feat as they looked out for a safety-net in preparation for Diana Baguma, their daughter’s birth.

Growing in stock and sales, the business grew and, by 1994, expanded into Plot 4, Martin road where Quality Supermarket was started and registered as a hypermarket, housed on one floor. In 1999, it was expanded into a fully-fledged invest-ment on a three-floor permanent structure. Its growth continued that, by December 2006, Ntinda shopping mall, a branch of the supermar-ket, was opened in Ntinda town.

In March 2008, Quality shopping village, standing tall on a Lubowa hill, was opened. The last branch, at least for now, will be opened in Namugongo along the Naalya- Kyaliwajjala Road by the end of April 2012, completing a quadruplet. Quality Supermarket is, arguably, among the pioneers of hypermarkets in Uganda.Apollo Mutungi is now the chief executive and Mary Mutungi the managing director, while Diana Baguma is the director.

Charlotte Kukundakwe is the general manager.The concept of decentral-ising the branches, moving away from the hustle and bustle in the Kampala city centre, was undertaken to make shopping more convenient and exciting for customers, says Baguma.“It (the concept) was developed from Europe where malls are out of town,” she says. “People don’t like inconveniences of shopping amid traffic jams, parking difficulty and hustling.”At any of its four well-stocked branches, security is guaranteed, with Close Circuit surveillance televi-sion (CCTV) cameras stra-tegically placed to record any pre-planned lawless-ness, complimented by armed security personnel.

Parking on its paved ex-pansive avenues has been made more friendly. The Martin road branch has space a 40 cars compared to the Lubowa branch which can park 350 cars and the Namugongo outlet, occupying 4, 800 Sq, metres of the total 15, 000 Sq. metres set to be the biggest offering ample parking space for up to 500 vehicles.

There is also space for other social amenities like a pharmacy, boutiques, tours and travel agencies, saloon, hardware and fur-niture shops, banks among others. At its four branch-es, Quality Supermarkets offers a wide range of attractive products at competitive prices that a customer cannot resist the allure of picking one.“We have products that meet demands of our up-scale and regular custom-ers at all our branches,” says Kukundakwe. With VISA and Master Cards, supplied by Com-bined Forex Bureau and Barclay’s Bank transac-tions for customers who are afraid of carrying hard-cash, shopping at the Lubowa branch is a marvel.

The supermarket has stood the test of the economic hard times exacerbated by the global financial meltdown and succeeded in taking ser-vices closer to its customers. The sight of clean, well-spaced rows makes shopping even more fun. Shopping at Quality is an experience one would only miss if they failed to visit the supermarket.While other supermarkets are jostling to occupy every space in the city-centre, Quality Supermarket is moving out of Kampala.

“We have big plans of oc-cupying different parts of Kampala, before ventur-ing out of the city,” says Baguma. “Until then, the sky is the limit.”From a sole proprietor-ship, employing only the couple, into a state-of- the-art world-class shop-ping centre employing 150 workers, Quality Supermarket has brought a new face into city shopping. “We are striving to provide quality staff to match our (qual-ity) products who serve at customers’ convenience,” says Baguma.

And, like any other business, the growth from a grocery into a supermarket has come with its own challenges.But, with a forward look, determination and hard work, success has finally been arrived at. “Our strength lies in identifying and satisfying the needs and tastes of our customers,” says Kukundakwe. “We do enough market survey to identify what customers in all our branches need, before embarking on supplying them.

”Asserting its authority as a giant supplier of quality and durable products, Quality Supermarket has also cemented its name as a one-stop shopping centre, offering home lighting and cooking apparatus like Shell gas, Total gaz and LPG Oxy-gas cans.So, for any customer or one-timer in the vicinity of any of its branches, make Quality Supermarket your one-stop shopping centre; it is mesmerising!

[u.g boy]

Makerere University invents milk booster feeds
Publish Date: May 07, 2012

Dr.Fred Kabi,Senior Lecturer at Makerere University,explaining how Milk booster works,which was util

By Brenda Asiimwe

Makerere University College of Agricultural and Environmental Sciences (CAES) has developed a milk booster to help improve milk production among farmers.

According to Dr Fred Kabi the leader of the project and senior lecturer at the college, the booster is meant to mitigate malnutrition, extreme hunger and poverty through improved milk production and daily cash flow.

“The milk booster contains urea a rare component that facilitates proper functioning of the microbial population in the rumen. By supplementing 1 kg per animal per day, a farmer increases milk production by 30 %,” said Kabi.

He noted that majority of farmers underfeed their cattle using elephant grass that does not contain all the food nutrients that an animal needs.
The milk booster is made out of sugar cane industrial waste of molasses mixed with other ingredients like maize barn, cotton seedcake, urea, mineral salts and lime that can promote healthy growth of the animals.

The project which entitled “participatory research for technology development on use of molasses urea blocks and local feed stuff for improved diary production” was done in partnership with Kakira sugar works limited, Diary Development Authority and Kakira Out growers Rural Development fund.

Kabi noted that the milk booster feeds will come on market in July though on small scale production due to lack of improved technology to produce on a large scale.

Professor Samuel Kyamanywa the principal of the CAES added that the Makerere University Agricultural Research institute (MUARIK) has also piloted the use of ICT in agriculture through use of voice messaging.

“The project which integrates mobile technology in the provision of agricultural related services, research and developments was championed in districts of Kabale, Ntungamo and Kisoro,” he said

Kyamanywa however noted that though the university is ready to provide technical expertise, they still lack financial capacity to commercialize the technologies given the over whelming demand.

Venansius Baryamureeba the university’s chancellor noted that the university has been allocated $30 million dollars from the African Development Bank (ADB) to improve science and technology.

He said the $30 million will go towards the rehabilitation and refurbishment of teaching specialized laboratories in the science based units, setting up multidisciplinary labs and construction of central teaching facilities.




Tourism sector expects increase in funding
Publish Date: May 07, 2012

Mt.Muhavura summit
By David Mugabe

The amount allocated to tourism promotion in the 2012/2013 budget will be a major illustration of commitment to a sector contributing more than 20% of the national budget revenue, analysts have said.

This is because at no time has the country been presented with a better opportunity to show its commitment to the sector than this year when several major international publications and organisations recognised Uganda’s natural abundance and tourism potential.

The most prime recognition was from “Lonely Planet”, the premier online tourism publication that declared Uganda as the best place to visit in 2012.

The national budget framework indicates that the 2012/2013 approved budget for the entire tourism, trade and industry will rise minimally by 0.1% from sh53.1b to sh65.1b.

But senior sources are worried that the overall ministry increase will not trickle down to tourism promotion which has been a major point of concern to key stakeholders and observers.

Cuthbert Baguma, the Uganda Tourism Board (UTB), former boss the major promotional agency, said they (UTB) “may have to work within the constraints (budget).”

“It is not going to change (sh2b budget), there are no indications really. It sends us thinking hard,” said Baguma.

For several years now, sector players and observers have been baffled at the sheer lack of financial commitment since donor funding especially from the European Union into the sector dwindled close to a decade ago.

Already the 2012/2013 national budget framework has pointed to infrastructure as a major priority area for the Government.

The Government has always argued that channelling funds into infrastructure projects like the road network is one way of funding tourism. While this is true, evidence shows that a deliberate channeling of funds into promotional activities has a direct impact in attracting high spending travellers especially from Europe and the Americas.

This is the case with Kenya, Tanzania and lately Rwanda, which have all reaped big from a deliberate decision to pump money at key markets where the top dollar is.

Tourism minister Ephraim Kamuntu while announcing Uganda’s success at the 2012 ITB Berlin exhibition recently was non-committal, saying the budget cycle was still on.

Already, first quarter indications are encouraging according to information from the tourism ministry, which show that arrival figures are up.

Despite the low funding, tourism contributes 24% of the total national budget revenue.

It receives only less than 1% of the total national budget that stands at over sh10 trillion.

In the 2011/2012 period, foreign exchange earnings from the sector shot up to $662m (sh1.6 trillion) up from the previous year’s $90m (sh229b).

Even the sh2b that has been allocated to the sector for the last two years, not all of it gets to UTB at the end of the financial year.

Questions have also been raised about the capability and transparency of the promotion agency to handle the funds with integrity. There are reports that at some major exhibitions,

UTB officials abandon the stalls, causing embarrassment to the country.




Mengo, Wakiso rehabilitate cultural sites
Publish Date: Apr 17, 2012


By Jeff Andrew Lule

BUGANDA Kingdom and Wakiso district authorities are to work jointly in rehabilitation of various cultural sites to promote tourism.

The district chairperson, Matia Bwanika said the move is aimed at promoting tourism and increasing revenue for the district and Buganda Kingdom.

While meeting the Kingdom premier, Eng JB Walusimbi at his office in Mengo yesterday, Bwanika unveiled a 12 member district committee, which is going to work with the Kingdom committee to promote the sites in the district.

“We realized that Wakiso had majority of the Buganda cultural sites that can be rehabilitated and utilized as tourist attractions. This will help to protect our cultural sites and also bring in more revenue,” he said.

He said the district has already carried out a survey and gazzeted 44 sites which will be rehabilitated.

Bwanika said the committee is going to start with Wamala tombs to give it a face lift as one of the most historical sites in Buganda.

“We want to rehabilitate the entire site to get its original face lift, install a water tank, plant trees by the road side and put up a parking space. Wamala tombs are second to Kasubi tombs and can equally attract more tourists,” he noted.

The district committee is to offer technical guidance to the Kingdom on how to develop the sites and also help is raising funds.

The delegation also handed over sh1m to contribute to the reconstruction of Kasubi tombs.

Walusimbi said Wakiso has about 32 tombs and over 50 other sites. He said the Kingdom is ready to work together with the district authorities to rehabilitate the sites and promote tourism to generate more revenue.

He said tourism is one thing that can create employment for the young people.

“We are ready to work with the district to achieve our goal to change the lives of our people. It will help protect the sites, preserve culture, generate revenues and provide employment,” Walusimbi noted.

He said they were working with the Japanese Government to rehabilitate Wamala and Kasubi tombs among others.

The chairperson of the committee, Allen Ssentongo, said they intend to make leaflets on all sites to create awareness among the people

[u.g boy]

Power cuts reduce, Bujagali releases more electricty
Monday, 07 May 2012 06:14 Eriosi Nantaba

Kampala, Uganda - A few months ago, Ugandans have been struggling with 24 hour load shedding which left many business operators and industrialists battling with the increasing costs on fuel to run generators as the power alternatives.

The sound of generators and carbonmonoxide fumes had become a daily occurance in and around production centers. Soon, traders who couldnt handle the fuel costs, closed shop.

good news: Power cuts that had caused increases in commodity prices will drop after this development.

Justus Balikuddembe who owns a printer along Nasser Road in Kampala, says he often failed to meet clients’ deadlines with the 24 hour load shedding. Umeme and Uganda Electricity Transmission Company Limited (UETCL) have reduced load shedding with Bujagali producing an additional 100MW from Bujagali power project.

With the reduced load shedding, industrialists and business are all smiles with the reduced costs and production boom. Rizwan Hussein, Chief Finance Officer Rwenzori Commodities admits that production costs have reduced with an increase in out put.

"Use of generators could out put per given period and so as more power is added to the grid, production costs reduce with more out put and more sales to the industry," Hussein explained.He however revealed that the reduction is less with the increased power cost per unit effective January this year.

"Cost of power per unit increased by 75% which means more expenses than the previous and so Umeme should consider exemptions for large producers and manufacturers," noted Hussein.An Industry source that preferred anonymity said such a development is good for business with a save on costs.

"The turn around time for production has improved with less expense on fuel to run generators," he said.

Joyce Lumala a photo studio operator Nakulabye (2miles north of the city center) says they can ably pursue their work with the current power situation.

"Most of the studio work requires urgency which can only be made possible with reliable power supply," Lumala explained.

Hasifa Nabakiibi a fresh juice seller at Mukwano Shopping centre in the heart of Kampala city says the situation was unbearable due to the losses. "Business is now getting back to normal," Nabakiibi said.

[u.g boy]

SA's MapIT buys 26% of Uganda's SatNav
8 May 2012 07:431 commentsBizLike
The Daily Nation reports that South Africa's MapIT has bought a 26 per cent stake in Ugandan information technology firm SatNav East Africa.
MapIT will also provide SatNav with technical support and improved digital maps across six East African countries, said Vincent Okema, SatNav chief executive, adding that the new arrangement involves shares worth $2.1 million which will help his firm in its expansion drive in the East African region including South Sudan.

SatNav East Africa is Uganda's pioneer in Global Positioning System [GPS] technology and GPS based consumer electronics, and MapIT is a South African IT firm that provides digital mapping and location based services. Okema said that SatNav has developed pay-based digital maps and address codes for the whole region. Navigation devices, he said, are linked to digital maps to give direction, identify points of interest such as hospitals or restaurants as well as help to sort out emergency cases.

"We have navigation devices that can guide you to any location whether in the village or in congested urban areas," Okema said. MapIT managing director Etienne Louw said the South African firm is looking forward to working with SatNav. "With our detailed mapping datasets for Africa, we can assist SatNav East Africa in achieving its business goals," the Daily Nation says.



SatNav East Africa Sells Shares To MapIT

In a move expected to improve services and accessibility, MapIT has acquired shares worth USD2.1 million in SatNav East Africa.
Vincent Okema, CEO at SatNav East Africa commented that this move would further the firm’s expansion into East Africa markets by enhancing digital mapping and technical support.


Etienne Louw MapIT MD and Vincent Okema SATNAV East Africa CEO (image source: MapIT

“MapIT will also provide us with all the technical support including improved digital maps across six east African countries.”

Okema further explained the move by the firm to develop digital maps and address codes for the whole region and prices range from Ush50, 000 and Ush200, 000 for business persons while navigation devices range from Ush600, 000 and Ush1.3 million.

MapIT is a South African IT firm that offers businesses high quality digital maps. Other services include Web Mapping, Mobile Mapping, Digital Mapping Services, Location Based Services (LBS) and Location Business Intelligence.

SatNav East Africa is Uganda’s prime pioneer in Global Positioning System (GPS) technology and GPS-based consumer electronics.

Established in 2011, it has grown to be East Africa’s independent geographical data of East Africa and it they have built a unique and impressive enhanced digital database that contains information for all their our location based services.

Uganda Government News: President Museveni Tips Europe On Ugandan Investment Climate
First published: 20120508 11:28:10 AM EST Share on twitter


Ultimate Media

The president of Uganda, Yoweri Kaguta Museveni has urged the European business community to massively invest in Africa and Uganda in particular because the continent is currently a fertile ground for investment since Europe and other areas are badly hit by the economic crisis.


While opening the Swift African regional conference 2012 in Kampala today, M7 said, Uganda and Africa at large has a ready market for end product and at the same time has all factors of production waiting for exploration.

The Central Bank Governor, Prof. Emmanuel Tumusiime Mutebire highlighted the importance of regional integration in economic development on the African continent.

The conference which has attracted 380 bankers from 40 countries world wide is acting as a platform for bankers to exchange ideas on financial and economic management.



U.N.'s IFAD to lend Uganda up to $80 mln for farming
Tue May 8, 2012 5:03pm GMT Print | Single Page [-] Text [+]
KAMPALA May 8 (Reuters) - The United Nation's International Fund for Agricultural Development (IFAD) will lend Uganda up to $80 million between 2013 and 2015 at low interest rates to boost agricultural production, IFAD's president said on Tuesday.

One of the IFAD-funded projects under its last three-year programme has been critcised as a threat to the environment. The oil palm plantation is on Kalangala Islands in Lake Victoria, home to some of Uganda's pristine tropical forests.

IFAD has invested about $20 million and the project is expected to benefit an estimated 140,000 farmer households.

IFAD President Kanayo Nwanze said the palm plantation, which he toured during his visit to Uganda, was itself a forest and that environmental concerns had to be weighed against development needs.

Nwanze told a news conference that the east African country had rich agricultural potential but that it needed adequate investment to exploit it.

"In the last three years, 2010-2012, IFAD allocated on average $74 million, which has been used to support vegetable oil development programme and the rural finance programme," he said. (Reporting by Elias Biryabarema; Editing by Louise Ireland and Duncan Miriri)

[keithbas]

Tullow, partners to invest $750m in Uganda this year
Publish Date: May 10, 2012

Tullow workers at one of the oil fields in Bunyoro. File Photo
UK-based oil explorer Tullow Oil plans to spend up to $750 million (466 million pounds) jointly with its partners in exploration and further drilling in Uganda this year as the east African country races to begin crude production.

Eoin Mekie, Tullow's Uganda country manager, said the firm also expects to get its first production licence by the close of this year as they proceed with appraisal drilling to determine the size of their oil wells after initial discovery.

In February, Tullow, France's Total (TOTF.PA) and China's CNOOC (0883.HK) completed their long delayed $2.9 billion partnership venture that gave each of them a one third stake in Tullow's five Uganda exploration blocks.

"The three partners this year will spend something in the region of $650 to $750 million," Mekie told Reuters in an interview on Wednesday.

"And this money will be spent on drilling, on appraisal, development, seismic acquisition, studies etc."

Mekie said this year's planned investment was part of the $10 billion that the three companies expected to spend before Uganda's oil sector goes into full-scale production phase.

Commercial oil production in Uganda is likely to begin in 2014 with full-scale output seen around 2020, he said.

Uganda discovered commercial hydrocarbon deposits along its border with the Democratic Republic of Congo in 2006, and Tullow says reserves of 1.1 billion barrels are confirmed in place and believes there are a further 1.4 billion barrels left to find.

The government says 2.5 billion barrels of oil are confirmed, of which between 1 billion to 1.2 billion barrels are recoverable.

"We have applied for the Nzizi production licence (in Block Two operated Tullow) ... there's a lot of information that government is studying. In the course of this year we hope to get our first production licence," he said.

The firm, however, hopes to start supplying some crude, accumulated in exploration and appraisal drilling, to Ugandan industries later this year.

CROSS-LISTING
He said London-listed Tullow was now accelerating plans to cross-list its shares on the Ugandan bourse after a protracted tax dispute with the government delayed the process.

"Now that we have the partnership up and running, I think you will see cross-listing plans firm up over the course of this year but finalisation is likely next year," he said.

The tax row ensued after Tullow was appointed as a tax agent for its former partner, Heritage Oil (HOIL.L).

Heritage, whose sale of its 50 percent stake in two exploration blocks to Tullow for $1.45 billion was completed in July 2010, argued proceeds from the deal were not subject to taxes. A Ugandan tribunal has ruled the company is liable to pay $404 million in capital gains tax.

On plans by Uganda to build a refinery, Mekie said a capacity exceeding 60,000 barrels per day (bpd) would make the refinery unviable because Uganda would not find enough regional market to buy the fuel.

Uganda is eyeing a refinery that begins with a capacity of 20,000 bpd, enough to meet local demand, to be ramped up to reach a peak capacity envisaged at 200,000 bpd to meet international demand.

"... our view is that it would be difficult to secure financing (for a refinery of 200,000 bpd) because it's a very competitive market for funds," Mekie said. (Reuters)

[keithbas]

Uganda’s oil and gas sector provides investment opportunities’
Publish Date: May 10, 2012
The 21-member delegation including MPs, government technical staff is on a study visit to Norway
By Ibrahim Kasita in Oslo, Norway
Uganda’s oil and gas industry provides opportunities for both local and international investors to make money following the free-market policy adopted in the early 1990s, Eng. Irene Muloni, the minister of energy and mineral development, said.
“We embraced fully the (market) liberalization concept. The doors to the budding petroleum sector are open to all interested investors,” she stressed.
“There are opportunities in the entire value chain from exploration, appraisal, development, production and value addition. Logistics and the entire supplier chain is much needed.”
The minister who led 21-member delegation including legislators, government technical staff, to a week’s study visit to Norway, was speaking to members of the Norwegian-African Business Association (NABA) in Norway’s capital of Oslo.
NABA promotes business opportunities on the African continent and serve as a bridge between Norwegian and African business communities in Norway’s capital of Oslo.
The Ugandan delegation, under the invitation of Norwegian government, is studying the best practices in managing the petroleum resources, revenue and environmental management in a bid to ensure that Uganda’s oil and gas industry creates lasting value to society.
Robert Kasande, the head of Uganda’s refinery project, said there are investment opportunities in joint ventures with companies holding licences.
“Emerging Infrastructure like the Refinery, pipelines and storage facilities, Service Provision in the fields of Engineering, Procurement, Construction, and environmental consultancy are the available opportunities,” he said.
Norway is one of the few and lucky countries that have been able to manage its oil and gas resources effectively and efficiently to the benefit of its citizens.
And in 2005, Uganda and Norway signed an agreement to provide for support through NORAD’s Oil for Development to Uganda’s nascent oil and gas sector.
The Programme “Strengthening the State Administration of Upstream Petroleum Sector in Uganda” with the objective of supporting the strengthening the Petroleum Exploration and Production Department to handle the challenges in the exploration phase which ended in June 2009 after three and a half years of successful implementation.
A new five-year Programme “Strengthening the Management of the Oil and Gas Sector in Uganda” commenced in July 2009. The overall objective (Goal) of the Programme is to contribute to the achievement of the goal of the National Oil and Gas Policy of Uganda which is: “To use the country’s oil and gas resources to contribute to early achievement of poverty eradication and create lasting value to society”.
The support for the new programme covers three broad areas of Resource, Revenue and Environment Management through the Ministries of Water and Environment (MWE), Finance Planning and Economic Development (MFPED) and energy and mineral development.
In implementing Uganda’s National Oil and Gas Policy of 2008, Government has tabled two bills to regulate the Oil and Gas Sector before Parliament.
The two Bills, the Petroleum (Exploration, Development and Production) Bill, 2012 and the Petroleum (Refining, Gas Processing, Conversion, Transportation and Storage) Bill, 2012, were tabled on Wednesday 8th and Tuesday 15th February, 2012 respectively.
The objects and principles of the Petroleum (Exploration, Development and Production) Bill, 2012 are to give effect to article 244 of the Constitution; to regulate petroleum exploration,development and production among others.
The objects and principles of the Petroleum (Refining, Gas Processing, Conversion, Transportation and Storage) Bill, 2012 are;- to give effect to article 244 of the Constitution; to regulate, petroleum refining, gas processing and conversion, transportation and storage of petroleum, to provide for an open, transparent and competitive process of licensing among others.

[u.g boy]

Uganda to invest heavily in infrastructure
Publish Date: May 09, 2012

By Samuel Sanya

President Museveni has said that Uganda has had slower economic growth than Asia due to policies that repelled foreign investment adding that the government is looking to invest heavily in infrastructure to speed up economic recovery.

The president pointed out that the Ugandan economy has bright prospects since aggregate demand, which is fundamental for business, is currently growing faster than supply calling for policies that will promote investment.

"Even when demand, raw materials, infrastructure, entrepreneurship and all other factors of production are present, the wrong policies can disorganize everything," the President said.

"Uganda has fallen behind countries like Indonesia and Malaysia due to policy mistakes by governments in the 1960's that stopped the private sector and foreign investment by nationalizing companies," he explained.

The President was speaking at the opening of the three day Society for Worldwide Interbank Financial Telecommunication (SWIFT) Africa Regional Conference at the Serena Hotel.

The conference has brought together over 350 delegates from over 30 countries under the theme "Africa first! Fostering growth and integration for international expansion."

The President challenged the delegates to look beyond simply transferring money from one point of the world to another and to devise means of increasing trade and investment in order to grow the volumes of money transferred.

He said that the government has since returned most of the previously nationalized companies to the private hands, liberalizing the economy and privatizing government agencies since 1986 reviving the private sector.

He noted that the country makes massive gains from taxes, raw material purchases, when investors set up in the country and use local factors of production compared to the minimal money lost to profit repatriation.

The President castigated the local business community for failing to properly identify the numerous business opportunities in the country adding that entrepreneurship and capital are vital for Uganda's economic recovery.

He pointed out that the government is looking to skill Uganda's human resources through the emphasis on the acquisition of technical skills and the teaching of science disciplines.

Emanuel Mutebile, the governor Bank of Uganda (BoU) noted that the East African regional integration is vital for long term economic transformation through strengthening trade and investment.

"The Securities markets have a big role to play in giving investors the ability to expand their portfolios. Enhancing our regional revenue flows is essential in strengthening regional integration," he said.

Alain Raes, the SWIFT boss pointed out that the organization is looking to lower costs of international money transfers, localizing money transfer systems and standardizing operations in all member countries in the next three years.


Tullow, partners to invest $750m in Uganda this year
Publish Date: May 10, 2012

Tullow workers at one of the oil fields in Bunyoro. File Photo
UK-based oil explorer Tullow Oil plans to spend up to $750 million (466 million pounds) jointly with its partners in exploration and further drilling in Uganda this year as the east African country races to begin crude production.

Eoin Mekie, Tullow's Uganda country manager, said the firm also expects to get its first production licence by the close of this year as they proceed with appraisal drilling to determine the size of their oil wells after initial discovery.

In February, Tullow, France's Total (TOTF.PA) and China's CNOOC (0883.HK) completed their long delayed $2.9 billion partnership venture that gave each of them a one third stake in Tullow's five Uganda exploration blocks.

"The three partners this year will spend something in the region of $650 to $750 million," Mekie told Reuters in an interview on Wednesday.

"And this money will be spent on drilling, on appraisal, development, seismic acquisition, studies etc."

Mekie said this year's planned investment was part of the $10 billion that the three companies expected to spend before Uganda's oil sector goes into full-scale production phase.

Commercial oil production in Uganda is likely to begin in 2014 with full-scale output seen around 2020, he said.

Uganda discovered commercial hydrocarbon deposits along its border with the Democratic Republic of Congo in 2006, and Tullow says reserves of 1.1 billion barrels are confirmed in place and believes there are a further 1.4 billion barrels left to find.

The government says 2.5 billion barrels of oil are confirmed, of which between 1 billion to 1.2 billion barrels are recoverable.

"We have applied for the Nzizi production licence (in Block Two operated Tullow) ... there's a lot of information that government is studying. In the course of this year we hope to get our first production licence," he said.

The firm, however, hopes to start supplying some crude, accumulated in exploration and appraisal drilling, to Ugandan industries later this year.

CROSS-LISTING
He said London-listed Tullow was now accelerating plans to cross-list its shares on the Ugandan bourse after a protracted tax dispute with the government delayed the process.

"Now that we have the partnership up and running, I think you will see cross-listing plans firm up over the course of this year but finalisation is likely next year," he said.

The tax row ensued after Tullow was appointed as a tax agent for its former partner, Heritage Oil (HOIL.L).

Heritage, whose sale of its 50 percent stake in two exploration blocks to Tullow for $1.45 billion was completed in July 2010, argued proceeds from the deal were not subject to taxes. A Ugandan tribunal has ruled the company is liable to pay $404 million in capital gains tax.

On plans by Uganda to build a refinery, Mekie said a capacity exceeding 60,000 barrels per day (bpd) would make the refinery unviable because Uganda would not find enough regional market to buy the fuel.

Uganda is eyeing a refinery that begins with a capacity of 20,000 bpd, enough to meet local demand, to be ramped up to reach a peak capacity envisaged at 200,000 bpd to meet international demand.

"... our view is that it would be difficult to secure financing (for a refinery of 200,000 bpd) because it's a very competitive market for funds," Mekie said. (Reuters)

[u.g boy]

Paving way for private parking space in Kampala

Cars parked along the streets are a common sight in Kampala. There are less than 10 private lots in the Kampala business district so far - forcing most motorists to park along the road.

By Mary Atuheire (email the author)

Posted Monday, May 14 2012 at 00:00
IN SUMMARY

KCCA is moving to increase parking space in the city by encouraging private investors to come on board to develop public parking spaces. From here on, they say they will only approve storeyed buildings with parking space on their construction plans.

It’s been 30 minutes of sitting in the same traffic-clogged spot. My neck is starting to ache and my eyes blur with the visions of car upon car fighting each other for a prime position. We cruise past Access Rd and it is full, so we go up to Kampala Road past Global Trust Bank, Uganda House, Steers, Bank of Baroda and the Orange shop until finally reaching Cairo bank. As I expected, the parking lot is full. So we drive down Duster Street, the upper part of Luwum Street, behind Baroda and up Entebbe Road back to Kampala Road.



But then, all of a sudden, we find it. The holy grail of Kampala driving: a city centre parking spot at Pioneer Mall.
It is a familiar ordeal; people go through in search of car parking space every day.

Alex, a Stanbic Bank employee, says although he has to be at the office by 7am, he still fails to find parking.
“It is so frustrating because I am in town very early. I park my car at Watoto Church and jump on a boda boda back to Stanbic,” he says. Angella (not her real name), works at a private firm on Kampala Road, but parks her car at a friend’s office with a parking lot.

“I do it with a lot of skill that even the askaris do not know that I do not work there,” she says. “I had to resort to it after trying to park somewhere and would be charged Shs10,000 daily for parking”.

Lack of space
The Pioneer Mall parking lot services a handful of complexes in the area that include Ivory Plaza, Zainabu Aziz Emporium, Majestic Plaza and Sunset Arcade.

According to Sam Nsubuga, a parking attendant that has worked at the parking lot for 14 years, the lot is considered a “strategic” and preferred spot for many. “Our customers sometimes wait up to 40 minutes to get space,” he says.
Yet while people are fighting for the few spots available, the city authorities say, there are actually a number of unused plots they have their eye on. Though still very much in the planning stages and with no allotted budget, private lots have been pegged as the way forward.

Share This Story
Share

There are less than 10 private lots in the central business district so far, according to Joseph Ssemambo, the acting director of physical planning for the KCCA, including ones on Dewinton Road, Martin Road, William Street, the National Theatre and the Pioneer Mall parking lot, among others.

Mr Ssemambo says the previous city authority had meant to regulate parking in the city, but that areas once reserved for parking were used otherwise as the plans were never implemented.

“The plan now is to encourage private investors to invest in public parking,” he says. “Only plans of storeyed buildings with parking space will be approved”.

Private firms come in
The council is the over-all in charge but it already identifies private entities that can perform particular services better.

As of now, Multiplex Uganda is the firm that manages street parking for the KCCA; collecting parking fees and remitting a monthly contract sum to the council.

According to Eldard Kansiime, the project manager, parking charges are based on the number of spaces a car occupies and the amount of time spent parking. One parking space for an ordinary car costs Shs400 for an hour. Beyond an hour, the charge is the unit cost multiplied by the number of spaces occupied. Beyond two hours, one pays Shs400 for every additional half hour.

“The objective is to encourage people not to overstay and deny others of parking space. It is to mainly decongest the city,” he says.

There is also an arrangement for advance payment by monthly and quarterly parking stickers. A monthly sticker for an ordinary car costs Shs42,000, and a lorry (two parking spaces) costs Shs84,000. There are also three-month stickers for an ordinary parking space, which costs Shs120,000.

Yet ultimately, the KCCA says it hopes for the complete removal of street parking. When the bus system is fully operational, it also plans for bus lanes on specific streets.


But Mr Kansiime says it is not enough. According to him, building by-laws should be strictly enforced, requiring provisions for parking which will leave the streets open for short time parkers only. Turnover would be high which would also help to decongest the city, he says.



Mr Kansiime also calls for park and ride arrangements, where regional parks outside the city are created in which people park their cars and then are shuttled by buses into the city. A family with ten cars that would normally all enter the city would use one bus.

As a private partner himself, Mr Kansiime says the KCCA’s plan for more private partnerships is a good one. But to meet the quickly growing need, he says added incentives are needed – such as subsidised plots of land for people to invest in multi-storeyed parking lots and automated parking spirals.

What you need to know
Nusubuga notes that the peak hours are from 10am till 5pm. Public holidays also tend to be very busy. Most day parkers are mainly people that have come to run errands in town and business owners that work in the arcades. “On an average day, we make between Shs700,000 to Shs1m especially on big days”. The lot has a capacity of about 200 cars.

It costs Shs2,000 to park from one minute to an hour and Shs1,000 is added for any minute beyond an hour. A day lasts from 8am to 8pm and beyond that, night parking costs Shs3,000.

When is a car clumped or towed?
The main reason for clumping a car is defaulting on parking fees. The parking attendants have a record of cars that have defaulted, which is updated daily at the offices. When the default sum accumulates, an enforcement team clumps the car depending on the amount in default. A bill can be paid within 48 hours before charging and if these exceed, the charge is increased by Shs2,000.

The other reason a car may be clumped is because of wrongful parking. Areas where People Park are gazzeted and have parking signs. Parking on street pavements is prohibited. It is a violation of city by-laws. When a car is found on a pavement, it is clumped or towed. A car may also be clumped when it is found in an area not designated for parking and if found parking around a roundabout.

Towing is normally done after 6pm. Multiplex’s working hours are from 8-6 and if a car that has defaulted is not cleared by 6pm, the car is towed to the offices. A car can also be towed if found on a pavement.

[u.g boy]

East Africa: Uganda's Middle Class Grows As Poverty Dips
BY PAUL TENTENA, 13 MAY 2012
Comment
Kampala — The number of absolutely poor Ugandans has dropped to 7.5 million (24.5%) from 8.5 million (31.1%) as of 2010, a Ministry of Finance status report released in Kampala shows.

The report indicates a growth in the country's middle class from 7.8 million (28.7%) in 2006 to 10 million (32.6%) in 2010. It as well shows a growth in the non poor but insecure citizens from 11 million to 13.2 million in the country.

The absolutely poor Ugandans are those that feed on less than a dollar (Ushs2500) a day, while the non poor but insecure citizens are those that can meet their basic needs or afford to feed on more than a dollar but can easily fall back into the poverty cycle.

The middle class are citizens that have at least attained a certain level of income security. They devote a higher proportion of total consumption to education, and has fewer and more educated children.

Releasing the report in Kampala Mr. Albert Musisi, the acting commissioner Economic Development Policy and Research in the Ministry of Finance, noted the key drivers to poverty reduction as many Ugandans are diversifying from peasantry agriculture to trade, low productivity but welfare enhancing jobs and of recent growth in wage employment ( reduced underemployment ).

The report shows that 42% of Ugandans have joined trade, 14% gone into the hospitality sector, 13% resorted to manufacturing while 23% have joined different service sector industries. Generally the report says there has been an increment in gainful employment.

Musisi told stakeholders during the launch of the report that 23 million or three quarters of Ugandans are out of absolute poverty but cautioned that the poverty progress status remains fragile.

"The 13.2 million can easily drop back below the poverty line due to volatility of food prices and reduction in purchasing power," he stressed.

In the East African region, Uganda's poverty status fight ranks second behind Kenya at 0.43. Kenya has 0.48 while Tanzania has 0.37 in terms of inequality based on regions.

The report stresses that children under 18 years who have a blanket have gone up to 43% while households with iron roofed houses have also shot up to 62%. The number of Ugandan households with at least a mobile phone has increased from 16.7% in 2006 to 46.3% as of 2010. The segment of people using mosquito nets has also reached 41.1%.

According to Musisi, the government should encourage farmer's associations, improve storage facilities to address food price fluctuations and allow farmers access credit to escape the likeliness of 13.2 million Ugandans falling back below the poverty line. He said only 1% Ugandans are considered to be rich according to the African Development Bank definition of the rich.

The report adds that the government should improve in the food market information systems for monitoring and disseminating accurate timely price data to avoid exploitation and price variations.


Uganda: Pioneer Explains Reduced Routes
BY ERIOSI NANTABA, 13 MAY 2012
Comment
Kampala — Kampala city public transporter Pioneer Easy Bus company has refuted claims over suspension of its buses along some routes and breakdown of some of their buses.

Pioneer rolled out bus services two months ago as part of Kampala Capital City plan to decongest the city centre.

Ms Connie Nankya, the PR of Pioneer reiterated that all the buses are operational and that the first 100 buses were, according to the contract, meant to cater for three routes including the Gayaza, Ntinda and Jinja road high way.

"The situation with in which we rolled out to join public transport was a time of crisis that called for a solution on all major routes to and from the city center," Nankya explained. "It was after recognizing stability of public transport as taxis resumed that we had to implement plans according to the contract.'

The Pioneer buses, manufactured in China by Yutong, the largest bus manufacturer in the world, have a total carriage capacity of 60 commuters with a passenger required to pay between Ushs500 ($0.2) and Ushs 800($0.36) depending on the length of the journey.

In an exclusive interview with East African Business Week, Nankya said the company has a fully fledged and operational Service station explicitly for Pioneer buses with technical personnel from Yutong.

"Technicians came along with the buses to ensure full operation incase of minor and key faults," Nankya said. "They are ready to fix and have the buses back on road," she revealed.

She acknowledged the fact that some buses had minor faults though they were fixed and did not stop them from operating with the availability of service men.

Pioneer is rolling out a plan to establish bus terminals every 25 km along every route from the city centre which will among others serve as parking points as well as reduce congestion of private cars in the city centre.

"The terminals will serve as parking grounds for pioneer buses and private cars as they take on the buses for transport to and from the city centre," she explained.

"The terminals will also include accommodation for the drivers and a workshop for efficiency and reliable transport."

Nankya revealed that Pioneer will with in a month introduce the prepaid system which will require passengers to purchase their tickets before getting on board.

"The system will enable passengers to budget for their transport per month and ease loading and off loading at designated terminals," explained Nankya.

She noted that other routes as per the contract will be served before the end of the year with the introduction of more 422 buses that are expected to cover up the entire city.

"We are committed to taking up city transport as we bring in more buses to present the cheapest and most reliable form of transport with in Kampala city centre," noted Nankya.



Kenya's Uchumi to open three new stores in Uganda
Mon May 14, 2012 9:15am GMT Print | Single Page [-] Text [+]
NAIROBI (Reuters) - Kenya's Uchumi Supermarkets plans to open three new outlets in neighbouring Uganda to tap a fast-growing economy that has been underserved by retail chains, its chief executive said.

"(In) Uganda we are expecting to have three more (stores). One of them is expected to open in about three weeks and that is a hyper (market) on the busy Kampala-Entebbe road," Jonathan Ciano told Reuters.

Another store would be opened in the western part of Kampala, which is not served by the large chains, he added.

The chain already operates two large stores in Kampala and a third one in the northern town of Gulu.

Retail on the African continent has attracted a lot of interest in recent years from investors who are keen to play the continent's economic growth story, which typically drives consumption.

"Uganda has been a very underutilised market. Kenyan competitors are running there now but I don't think that is the right way. You have to be cautious in ensuring you have the right site," Ciano said.

Uchumi shares relisted on the Nairobi bourse in 2011 at 15.9 shillings after a five-year trading suspension due to insolvency. They initially tumbled, but have since recovered and are currently the top performers on the bourse this year. At 0900 GMT, the stock was down 1.3 percent at 16 shillings.

The company, which also operates in Tanzania, said around the time of its relisting that it expected to increase its market value by 50-100 percent within two years thanks to expansion in the region.

Uchumi had sales of 10.84 billion shillings in the year ended June 2011.

[u.g boy]

Uganda Sports News: FUFA Monitors Players Ahead Of FIFA And CAF Games
First published: 20120510 1:41:56 AM EST Share on twitter


Ultimate Media

The Federation of Uganda Football Association has sent the national team head coach, Bob Williamson to Sweden to monitor the players there ahead of the world cup and African cup games scheduled for June.

Williamson is in Sweden to monitor Bryan Masa and Martin Mutumba to ascertain the players’ game standards and fitness.

According to the FUFA spokesperson, Rogers Mulindwa, the monitoring exercise is intended to make sure that they call only those players that will assist the national team to over the crowded marches set for June.

The national team is set to play Angola, Senegal and Congo between the 3rd of June and 16th June 2012 to brighten the chances of qualifying for the 2013 African Cup of Nations and 2014 world cup.

[u.g boy]

Oil palm changes Ssese fortunes
Business

TUESDAY, 15 MAY 2012 23:34 WRITTEN BY SIMON MUSASIZI 0 COMMENTS

An oil palm garden in Kalangala


IFAD earmarks $52m more for the project

An early morning drizzle on a chilly Sunday morning on Bugala island in Lake Victoria creates a perfect scenario to debate the red flags raised by a section of environmentalists over the oil palm project. These environmentalists accuse the project for the increasing environmental degradation of the island.

“The helicopter circled around the island but I didn’t see any evidence of degradation. I even thought, the helicopter wouldn’t find space to land,” said Kanayo F. Nwanze Kanayo, the International Fund for Agricultural Development (IFAD) President, during his recent tour of the islands.

A new report titled ‘Land, life and Justice: How land grabbing in Uganda is affecting the environment, livelihoods and food sovereignty of communities’ released recently by Friends of the Earth International (FOEI) pins the oil palm project in Kalangala district for the growing deforestation. The report notes that the oil palm project, which currently sits on 10,000 hectares of the island’s land, has wiped away many trees. However, according to Maria Bradley, the outgoing Country Programme Manager for IFAD, there has been no change in the forest cover in Kalangala.

“The protected areas have never been touched,” she said before adding: “Where farmers have cut down some of their forest land, which is private land, they have been replanted into palm, which are also trees.”

She noted that of the 10,000 hectares, 6,500 hectares were bought by government from private individuals and leased out to Oil Palm Uganda Limited, a subsidiary of Bidco. The 3,500 hectares are under smallholder farmers also growing oil palm trees. Bradley also noted that the project has adhered to Nema’s requirements of keeping 200 metres of protective border from the lake to avoid runoffs and agricultural chemicals ending up in the lake.


A VODP official displays a cluster of palm oil harvest to journalists in Kalangala island


The palm oil project in Kalangala was conceived in 1997 when IFAD approved the Vegetable Oil Development Project (VODP). As a result, government in 2004 signed an agreement with Oil Palm Uganda Limited (OPUL), which brought on board private investors to partner with government to push the crop. Originally, the total project cost was to be $60 million, consisting of an IFAD loan of $20 million, $33.1 million of co-financing from the private sector partner, $3.8 million from the government of Uganda and $3.1 million from beneficiaries.

However, due to an increase in the scale of the Oil Palm Subproject, the private investor and the government increased their contributions to $120 million and $12 million respectively, bringing the total cost to about $156 million. According to Willy Lugolobi, the LCV Chairman, Kalangala district, about 1/3 of the planted area was formerly grassland but is now green because of the palm trees and cover crops.

“All those allegations of environmental degradation are naked lies perpetuated by selfish people looking for funding,” said Lugolobi before adding: “There are people who want to justify certain projects and to do that, you have got to create a problem.”

Kalangala was years ago devastated by the coffee wilt which cleared the island of their major cash crop forcing everyone into fishing. And with illegal fishing methods, there has been growing concerns of fish depletion. Also, some farmers had resorted to charcoal burning as the only alternative source of income.

“Oil palm is so highly productive. You get about 4.5 tonnes per hectare compared to half a tone per hectare of an oil seed crop like soya beans, sunflower, corn,”

Bradley noted. Farmers have been able to produce oil palm fruit bunches totalling to 6,023 tons (worth Shs 2.41 billion) since 2010. As a result of this project, transport and communication on the islands have improved. A number of farmers have also opened up small businesses such as restaurants, hair salons, and poultry/piggery units, among others

For the second phase which started last year, IFAD has earmarked $53m for the project. The oil palm project will expand to Buvuma island in Mukono district where government has already secured 5,600 hectares of land, and will also focus on oilseed development around four hubs (Lira, Eastern Uganda, Gulu and West Nile) covering 43 districts.

[u.g boy]

Government says 6,000 new jobs created this year
SHARE BOOKMARKPRINTEMAILRATING
By Ismail Musa Ladu (email the author)

Posted Thursday, May 17 2012 at 00:00
IN SUMMARY

The figure is less than the 7,789 jobs created in last three months of 2011 even with more money injected.

KAMPALA



Some 6,237 jobs are expected to be created from investments made in the first three months of the year, the Uganda Investment Authority announced yesterday, down from 7,789 in the last three months of 2011.

Despite an increase in planned investments from $408 million to $806 million, UIA announced that the number of new jobs expected would drop.

UIA Board Chairman Patrick Bitature yesterday said the paradox of more money creating fewer direct new jobs was due to an increase in capital-intensive investments.
He added that any new jobs would not necessarily be created overnight.

“These are huge investments and the fact that so many things are involved, like research, looking for alternative supplies, we should not expect that in three-months jobs will be created,” he said.

While the government and job seekers will eagerly welcome the 6,237 new jobs alike, it is a fall from the 11,035 planned jobs announced by UIA between July and September 2011 and the 8,538 announced for the three months before that.

Share This Story
Share

UIA figures show that the authority has licensed 1,725 projects worth $4.6 billion over the last five years with projected creation of 372,881 jobs. However, the figures offer some insights into the impact of external economic uncertainties in markets like Europe and domestic political and economic uncertainties on planned investments in the country.

Oil sector
Although the oil and gas sector is expected to attract significant investments, uncertainty in the sector contributed to a drop in planned investments from $1.6 billion in 2010 to Shs1.2 billion in 2011. Planned jobs fell from 149,659 to 43,446 over the same period.

UIA’s latest report indicates that Uganda is attracting increasing levels of investment from emerging market economies like Turkey, Lebanon and Trinidad and Tobago, as well as Sweden. Other key investment sources remain UK, Kenya, Iran China, and India.

However, local investors in Uganda remain top of the pack in terms of creating jobs and investing in the economy, the report shows.

The report also shows that the oil and gas sector is attracting more investment beside the finance, insurance and real estate sectors. Government officials will, however, be concerned about the relatively low investment into the agricultural sector, which employs at least seven out of every 10 Ugandans.

[u.g boy]

Eritrean airline enters Uganda amid slow passenger growth

Nasair Eritrea officials chat after the airline made its maiden landing at Entebbe International Airport yesterday. Photo by Flavia Nalubega

By Flavia Nalubega (email the author)

Posted Friday, May 18 2012 at 00:00
IN SUMMARY

Upward trend. Nasair Eritrea becomes the fourth airline to enter Uganda’s airspace in a period of three years. However, Gulf Air recently suspended its Entebbe route.

Uganda recorded a marginal drop in air traffic in 2011 even as data shows that the country’s airline business is on the right track to progress.

The drop, according to Civil Aviation authority, resulted from a volatile global economy as tourists cut back on travels due to dwindling incomes.

Statistics provided by CAA indicate that Uganda’s passenger traffic reduced by 30,000 recording 1.2 million travellers in 2011 compared to 1.23 million recorded in 2010.

However, according to projections, air traffic might this year improve as Uganda becomes a major destination for tourists.

Recently Uganda was ranked as the global destination of choice for tourists in 2012.

The CAA public relations manager, Ignie Igundura, told Daily Monitor yesterday in Entebbe that even with a drop in the 2011 passenger numbers, Uganda’s airline traffic was on the right path to growth although it is slower compared to its regional neighbour – Kenya.

“Our curve is moving northwards. The growth is slow but it has been steady in the last ten years,” he said.

New airline entry
Meanwhile, Nasair, Eritrea’s national career made its maiden flight to Entebbe International Airport becoming the latest to launch its operations in Uganda in the last three years.

NasAir joins Qatar Airways, Turkish Air and Gulf Air – which suspended its Entebbe route early this year.

Uganda has in the last ten years registered tremendous growth in its air space as international careers seek to tap into the marked growth in air traffic resulting in part from the recent oil discovery and the generally positive outlook of the country’s economy.

However, a number of challenges including high aviation fuel prices continue to dog Uganda’s airline business.
Early this year, Gulf Air suspended its Entebbe route after only three months in operation citing low passenger numbers compared to players in the market and the increasing cost of doing business.

Mr Nasair Nasreddin Ibrahim, the chairman and group chief executive officer of Nasair, said at the launch of the airline’s services that Entebbe becomes the 11th route the airline will be plying with the aim of easing interconnectivity to boost trade, transport and tourism.

He said: “It has been difficult accessing Asmara for Ugandan travelers. Many travellers have had to pass through Nairobi,” however, he said “the new initiative shall provide an airline route from Uganda, through Asmara to Dubai.”

A sneak peek into Air Eritrea

Establishment. Nasair, which merged with Eritrea’s official carrier in 2006 was established in 2004 with an operating hub at Asmara international Airport. It has five airbuses, four of which are Boeing 737 and the other A320.
Other routes. Nasair also operates other routes including: Khartoum, Nairobi, Juba, Dubai, Saudi Arabia, Cairo, Bamako and Chad.


Growing route number. Entebbe is the airline’s 11th route

[èđđeůx]

Manufacturing continues to attract most new projects
http://www.monitor.co.ug/Business/Co...g/-/index.html

Manufacturing continues to attract the largest number of new investments even as energy and oil make wide leaps to feature among Uganda's main economic movers.

According to a Uganda Investment Authority report, manufacturing, energy and oil and the water sector recorded the highest value of planned investment compared to any other sector.

The three sectors with only four planned projects recorded a combined investment of Shs176.5 billion ($70.6 million) compared to manufacturing, which had 98 projects with planned investment of Shs1.5 trillion (about $637million).

Next in the pecking order is real estate and business services with planned investment of Shs650 billion ($260 million), followed by agriculture and forestry with Shs547.5 billion ($219 million) in planned investment and mining with planned investment of Shs39.7 billion ($15.9 million).

According to data, manufacturing has continued to lead in the last two years; however, there has been tremendous growth in new investments in energy, oil and water.

Mr Tom Buringuriza, the UIA acting executive director, said the growth in the three sectors has been as a result of deliberate effort to attract high value and capital intensive investment.

[u.g boy]

Crane Bank aiming for 50 branches by 2015
Publish Date: May 23, 2012

A new (19th) Crane Bank branch is officially opened at Kyambogo University. PHOTO by Mark Owor
By Mark Owor and Samuel Sanya

Competition in the banking industry is quickly turning to branch growth with bankers looking to increase deposits amidst the tight monetary conditions imposed by the Central Bank.

“Liquidity conditions are still tight, interest rates are still very high and businesses have not fully picked up yet,” said A. K. Kalan, the Crane Bank boss.

The Bank of Uganda (BoU) has maintained its benchmark Central Bank Rate (CBR) at 21% for a second month running, staying prime lending rates at an average high of 27% despite initial monetary easing at the start of the year.

“We are looking to expand to 50 branches from the current 19 branches by 2015. Through additional branches we will be able to grow our reach in areas where trade activity is high,” Kalan noted.

He was speaking at the sidelines of the opening of the bank’s 19th branch at Kyambogo University. Hitherto, Stanbic Bank Uganda held a monopoly at the University.

The Bank currently has the largest branch network in the industry at over 73 following its acquisition of the now-defunct Uganda Commercial Bank (UCB) in the year 2002.

Kalan revealed that Crane Bank has spent an additional $1m (sh2.5b) on its latest branch just a few weeks after spending sh3.5b on the recent Mukono branch.

The Bank is targeting the 28,000 student population at the University in addition to the large surrounding community.

[u.g boy]

Govt to spend one billion dollars on Karuma power station
Publish Date: May 25, 2012

Museveni meeting the EU ambassador to Uganda H.E Roberto Ridolfi over infrastructure financing
By Vision reporter

President Yoweri Museveni has said Uganda will spend over one billion United States dollars on the construction of Karuma power station, adding that part of this money would have been spread to boost development in health and education if the power plans had not been jeopardized.

Museveni was meeting the EU ambassador to Uganda H.E Roberto Ridolfi over infrastructure financing. The meeting took place at the President’s country home in Kisozi, Gomba District.

The President said Uganda had budgted for 13 billion shillings as part of its 5 year development plan that includes infrastructure development.

Ambassador Ridolfi said the EU shares in Uganda’s vision on how to develop the country with specific emphasis to infrastructure such as roads, energy, tourism etc, adding that infrastructure in East Africa is not only roads and railways but also ICT to promote interconnectivity.

“There is a big financial need to accomplish this and oil revenue can be used to pay loans. Infrastructure development must start today,” he said.
Ambassador Ridolfi said infrastructure development in Uganda and the East African region will promote the spirit of federation and help integrate countries like Rwanda and Burundi to balance economic disparity and growth in the region.

President Museveni has emphasized that the money accruing from taxes paid by oil exploration companies will finance infrastructure development including the construction of the proposed multimillion dollar power generation plant at Karuma falls. The 750 megawatts Karuma power project is expected to become the single highest power generation capacity in Uganda upon completion.

The 750 megawatts Karuma power project is expected to become the single highest power generation capacity in Uganda upon completion.

[keithbas]

Govt to spend one billion dollars on Karuma power station
Publish Date: May 25, 2012

• Museveni meeting the EU ambassador to Uganda H.E Roberto Ridolfi over infrastructure financing
  By Vision reporter
  
  President Yoweri Museveni has said Uganda will spend over one billion United States dollars on the construction of Karuma power station, adding that part of this money would have been spread to boost development in health and education if the power plans had not been jeopardized.
  
  Museveni was meeting the EU ambassador to Uganda H.E Roberto Ridolfi over infrastructure financing. The meeting took place at the President’s country home in Kisozi, Gomba District.
  
  The President said Uganda had budgted for 13 billion shillings as part of its 5 year development plan that includes infrastructure development.
  
  Ambassador Ridolfi said the EU shares in Uganda’s vision on how to develop the country with specific emphasis to infrastructure such as roads, energy, tourism etc, adding that infrastructure in East Africa is not only roads and railways but also ICT to promote interconnectivity.
  
  “There is a big financial need to accomplish this and oil revenue can be used to pay loans. Infrastructure development must start today,” he said.
  Ambassador Ridolfi said infrastructure development in Uganda and the East African region will promote the spirit of federation and help integrate countries like Rwanda and Burundi to balance economic disparity and growth in the region.
  
  President Museveni has emphasized that the money accruing from taxes paid by oil exploration companies will finance infrastructure development including the construction of the proposed multimillion dollar power generation plant at Karuma falls. The 750 megawatts Karuma power project is expected to become the single highest power generation capacity in Uganda upon completion.
  
  The 750 megawatts Karuma power project is expected to become the single highest power generation capacity in Uganda upon completion.
  
  
  

[keithbas]

Bujagali adds third 50MW to national grid

Share Bookmark Print Email Rating
By Nelson Wesonga (email the author)

Posted Friday, May 25 2012 at 00:00

The 250-megawatt Bujagali hydropower plant that started supplying electricity to the national grid in February added another 50 megawatts to the national grid this week, Authorities confirmed yesterday.



Government officials said the reliability test run for the third 50 megawatt unit was completed last week, bringing to 150 megawatts the total amount of power being generated from the plant.

Bujagali Energy Ltd confirmed the developments but said the reliability test run for the third 50MW unit will be completed this week.

Mr Bill Groth, Bujagali Energy Limited resident construction manager, said the engineers are presently running the unit through a series of ‘commissioning tests’ to ascertain their performance.

“We are still doing the testing. Hopefully, we shall have the unit within a week,” he said yesterday.

The first unit was commissioned in mid-February and the second in April, reducing the 12-hour loadshedding to two hours.

Share This Story

Share



While BEL says it is commissioning the third unit, the Electricity Regulatory Authority confirmed the latest addition is on board and the fourth unit is expected next week, bringing the total to 200MW.

Power distributor Umeme’s chief commercial officer Florence Nsubuga said she could not confirm the additional 50MW.

Bujagali power plant, whose construction started in 2006, is expected to produce a total of 250MW upon completion in July. Uganda has been relying on expensive thermal electricity. However, last November government said it is decommissioning all the emergency thermal plants, which have cost the nation Shs1.53 trillion since 2005 in subsides. It plans to use the savings to finance public infrastructure projects, including the construction of the 600MW Karuma Hydropower project, whose construction is expected to starts in June 2012.

Industry experts, however, say the Bujagali project will only provide temporary relief as demand is growing at 9 per cent per annum. Power demand is currently at 450MW against the supply of 350MW. But other industry players well versed with power sector, however, expect the country to be able to comfortably meet demand post-Bujagali for about three years.