Uganda Business, Economy and Infrastructure News

[Kwame]

This thread is dedicated to Infrastructure, Development, and other news related to Uganda.

[Kwame]

Kirinya Gets New Sh17 Billion Housing Estate

20 October 2008

Patrick Jaramogi

Kampala - PAN African Housing, a new estates company, is to set up a $10m (about sh17.5b) housing estate in Kirinya, a Kampala suburb.

The firm will target low-income earners.

Vinay Dawda, the company director, said: "It is our dream that all Ugandans acquire their own houses at affordable rates," he said.

Dawda said they would build 2,000, two-and-three bedroomed units on a 300 acre piece of land.

"We shall start construction work next month.

"More units will be constructed depending on the market demand," Dawda, also the managing director Britania Allied Industries, said.

He said arrangements would be put in place for low income earners to pay for the units in instalments.

"The arrangements to pay shall be through bank mortgages or salary loans.

"The houses cost between sh50m and sh75m depending on the size," he said.

Dawda said the houses would be ready in two years.

Analysts estimate that less than half of the over one million city inhabitants lack decent housing. Most people, they say, live in squalid and congested city slums.

A report released by the Government recently, showed that the country has a housing deficit of about 600,000 houses.

Industry players say the deficit means that the basic need of shelter is not being met for the majority of Ugandans.

The state minister for housing, Micheal Werikhe, was also quoted in the media recently saying that in Kampala alone, 100,000 housing units are required by the population.

Werikhe said this meant that only 13% of the housing needs in Kampala are being met by the current real estate companies and the National Housing and Construction Corporation.

He said the Government would encourage and work with private investors in the housing sector to generate proper housing for the majority of Ugandans.

He said two bills to encourage and ensure proper housing for the majority of Ugandans would be presented to Parliament soon. There are about 10 active real estate developers in the country.

New Vision

[Kwame]

Chinese to Invest $1.5 Billion in Rakai

25 November 2008

Kampala - A Chinese firm plans to invest $1.5b in the Lake Victoria free-trade zone in Rakai district, the investment state minister has said.

Prof. Semakula Kiwanuka said Paradise International had partnered with Kagera eco-cities, a firm linked to the Serulanda spiritual sect.

"This is a massive project that should be supported. We are interested in investment. Anything to do with religion is none of our business," he said.

Semakula and a team from the Uganda Investment Authority recently travelled to China.

"I will report to the President that the partners are serious and should be taken as bona fide investors," Kiwanuka told journalists in Kampala yesterday.

He, however, said the firm had not provided a feasibility study on the project. He said the project would be located on a 200-sqkm land located in Sesamirembe, where Serulanda sect is based.

The minister added that he met Benunula Eyenunula, a project official, who assured him that the project was not associated with the sect

Following a public outcry over the Serulanda spiritual sect, President Yoweri Museveni called for an inquiry into the group's activities. The probe committee is yet to submit its findings.

Semakula said he signed a memorandum of understanding with Kagera eco-cities in 2006.

"However, like many investors have done before, they disappeared and only came back three months ago. I knew they had no funds, but I think they are now ready," he said.

The minister said he visited the project site and met Rakai district officials and residents who expressed enthusiasm about it.

Kiwanuka said the Constitution provides for freedom of worship, but added: "We will ensure the project does not mix religion with politics."

He said the Cabinet would soon formulate a free trade law.

Allan Ddamulira, the Kagera operations manager, stressed that the firm had no relationship with the Serulanda sect.

All Africa

[Kenguy]

Kampala city to get flyover roads

Friday, 5th December, 2008
By Samuel Balagadde
and Lydia Namubiru

A new dawn is soon coming over the transport system in Kampala and the immediate surrounding areas of Mukono and Wakiso districts.

Going by the Transport Master Plan for the area to be released in January 2009, the Government is planning to transform roads in Kampala City and its suburbs into a modern integrated and efficient system starting next year.

According to the Greater Kampala Transport Master Plan, the city will get the first ever long distance dual carriage flyover from Jinja Road by-passing the city centre, crossing over the Mukwano and Port Bell railway lines up to Kibuye (4.7km).

The city will also get rapid bus transport services, light passenger rail network, circumferential roads, walkways and proper land use and drainage. Greater Kampala covers 970km2 with a population of 2.6 million and a growth rate of 4.5%. It includes 171 parishes, 99 in Kampala, 9 in Mukono and 63 in Wakiso districts.

The remedial plan was unveiled at the 4th Joint Transport Sector Review conference at Speke Resort, Munyonyo on October 27.

The commissioner for transport planning, G. O. Wandera, while presenting the National Transport Master Plan, said Kampala’s disorganised, outdated, congested and expensive transport system is going to be upgraded to “become efficient in terms of traffic flow, travel times and safety.”

The transformation is expected to stretch over 15 years, reaching completion by 2022/23. The feasibility study for introducing the bus system in the greater Kampala Metropolitan, will commence in January 2009 and operations will start in January 2010.

James Grace Itazi, the director for transport, said there are about 450,000 vehicles in Uganda, 50% of these in Kampala. Thus for every 100 people in Kampala, 8.7% have a car.

The 2008 statistics show about 7,600 minibuses in Kampala. In 2007, there were 16,000 bodabodas. Consequently, Kampala is facing major traffic problems, especially congestion, accidents, poor infrastructure and air pollution. Itazi says these problems are compounded by the free entry system, high vehicle ownership, single taxi operator (UTODA), unfixed routes and timetables, centralised terminals in the city centre and low levels of service.

According to Keith Muhakanizi, the deputy secretary to the treasury, the status of transport infrastructure in Uganda remains critical. Only 30% of the national road network is in good condition, he said.

Wandera stressed the urgency of the matter, saying traffic was expected to grow at around 8% per year until 2013. The cabinet is expected to state its position on the plan at the end of January.

According to the plan, the city transport system will be transformed thus:
# A dual carriage way will be built to by-pass the city centre from Jinja Road to Kibuye. It will have a fly-over crossing over Mukwano and Port Bell railway lines east of Kampala’s main railway line. This 4 or 6-lane road will be 4.7km and is estimated to cost $50.8m (sh99.1b).

# Other dual carriage roads without railway are to be completed at a cost of $300.7m (586.4b). They will include principal radial roads, the Northern bypass, and other circumferential roads totalling up to 122.9km. They will provide separate pedestrian and non motorized vehicle pavements.

# The existing single carriage ways will be upgraded and properly engineered. In future, all of them will have a minimum of two motor vehicle lanes, adequate shoulders and proper drainage. They will have separate bays for public transport, pedestrians and a total length of 572.9Km. They will cost 473.37m (sh923.1b)

# Other investments will include 62 junction improvements, 27 railway crossings and a 1,053km walkway network at a total cost of $124.51m (sh242.8b). 600km of gravel roads will be sealed and 60km resealed each year and 240km of roads maintained each year.


By July 1, nine junctions will have traffic lights to be reinstalled at a cost of $10m (sh19.5b). These are at Nakawa-Spear Motors, Social Security House, Mini Price building, Equatorial Hotel, Nakulabye and Mukwano-Access Road. The Port Bell and Spring roads junction at Bugolobi will get traffic lights next year at a cost of $1m (sh1.95b).

The idea of buses for public transport is being floated again. The plan aims at enabling 5,000 large buses to operate within the city by 2018. This will be a private sector venture with Government providing an enabling environment to attract private investment into the venture.
By 2011, with funding from World Bank, taxis will be given route schedules and stopping areas while bodabodas will be re-designated to ease congestion.

The Assistant Commissioner for Safety and Inspection in the Works Ministry, Eng Denis Sabiiti, said KCC’s lack of a specific traffic and road safety policy further compounds Kampala’s traffic problems. This has hindered efforts to enhance traffic management and road safety. “For example, KCC got a World Bank loan facility in 2004 for road safety campaign but were unable to do much because it is not their mandate,” he said

Wandera said the overall goal for the Greater Kampala Master Plan is to “ensure the transport sector is serviced by the right organisations which make the right decisions that are timely and responsive to emerging internal and external development opportunities and challenges.”

The conference agreed that management of public transport has been relegated to the private sector for too long, leading to chaos.

There is urgent need for Government intervention. It is expected that the Transport Master Plan will go a long away in solving Uganda’s transport problems, support multi-sectoral development and improve economic growth and development.

[Matthias Offodile]

Africa always talks in would , should and "to get" forms. please show what has been realised...if all the "woulds and coulds" materialized we would all sit joyfully in Africa instead of living abroad!

[Kwame]

Hima Cement in $108 Million Expansion

Kampala — EXPANSION work of the Hima cement has started. $108 million has been secured for the construction of the new plant adjacent to the old one in Kasese.

The project, which was contracted to CBMI Construction Company, a pioneer in China's cement engineering industry, is funded by Lafarge, which specialises in building materials.

Site manager Bernhard Farnbauer said this was one of the biggest investments in Africa and the first of its kind in the region. Business Vision learnt that this was aimed at increasing production capacity to meet the local demand.

Speaking during a media tour of the expansion works, Hima Cement managing director David Njoroge said the sh209.5b new plant would increase capacity from the current 375,000 tons to over 830,000 tons of cement.

"This will increase Hima Cement's ability to meet the local demand which has been rapidly growing making Uganda a net importer of cement," Njoroge said.

He added that the investment, expected to be commissioned in 2010, would have a significant impact on the economy and socio-economic welfare of the people in Uganda.

"Our investment will contribute to economic and socio development of the country. The direct and indirect employment, our payment of central and local government taxes and our use of inputs," he said.

Njoroge stressed that Hima Cement is among the top tax payers in Uganda with an annual wage of bill of over sh4.2b.

Hima Cement Ltd was 15th among the top tax payers in the country with a total of sh24.9b in the 2005/2006 rankings.

Njoroge added that the company pays an annual electricity bill of sh6.6bn.

The UMEME corporate communication manager, Robert Kisubi said; Hima was among the five company's customers in paying electricity bills though he declined to reveal the bills adding that Hima was in the right position.

Njoroge said: "With the latest technology and complying with the Lafarge group environmental standards, the plant will be within the global environmental standards. We have been involved in environment conservation programmes in the area and we have planted over 500,000 trees in seven years and we intend to plant other 1million traditional trees by 2011."

The company has spent sh500m on community welfare programmes. It provides free anti-retroviral drugs to those infected and also gives voluntary counseling and testing to staff and the Hima community. The plant manager Allen Mate said, the company has unsteady power problem. "We had to buy a generator worth $1.8m as alternative power source and we are making an additional investment of $1.5m in a gas conditioning tower." Mate explained.This had led to an increase in production costs and hence the price of cement, he added.

Mate said they also have a man power powerwhere it is only limited to the local people who are not skilled. They have 259emplouyees and 300 contract workers.

He said the problem this had been improved through investing in staff development in relation to Lafarge system of continuous skills improvemement. The company has also carried out training to the locals and interns from various universities for further skill enhancement.

Mate said the current plant had come of age and could not meet all the standards in different aspects.

Hima took ownership of the plant in 1994 from Uganda Cement Industries in 1971. Lafarge through Bamburi acquired the plant in April 1999. $15m was injected since acquisition increasing production from 120,000 tons to 375,000 tons. However, Njoroge (MD) said, with the new plant, the company hopes to overcome most of the challenges to significantly increase production to meet both local and export demand.

He said the project is being funded by their sister companies and their savings. Hima is a subsidiary of Bamburi Cement which is part of Lafarge East Africa. Baburi Group is the leading producing and marketing Group in the Eastern Africa region.

Its subsidies include Hima Cement (Uganda), Bamburi Special Products and Lafarge Ecosystems. Bamburi Cement is a subsidiary Lafarge specialising in building materials with top rankings in all its business: Cement, Aggregates and Concrete and Gypsum. Lafarge is represented with in 76 countries and has 90,000 employees.

AllAfrica

[myirakazi]

Originally Posted by Matthias Offodile

Africa always talks in would , should and "to get" forms. please show what has been realised...if all the "woulds and coulds" materialized we would all sit joyfully in Africa instead of living abroad!

are you telling me that you have never posted anything that's a ' would, should and "to get" '?????

-like i have said before matt, sometimes your 'tough love' approach conuses me

[Matthias Offodile]

Yes, I did it, too.....in the past but we should keep an eye on what is u/c and not the "woulds, coulds and shoulds...if we speak in future and conditional clause all the time, Africa must have turned into some giga-power in the meantime. Unfortunately, it hasn´t..people are dying due to easily treatable diseases.

[popa1980]

Haha Matt. Maybe you understand my cynicism now. In Ghana there were several mega-projects over the last decade which I thought would supercharge the economy. EIther they didnt happen or were a failure.

1) The Chinese were to build a huge manufacturing estate on the west coast of Ghana, exporting billions a year

2) Ghana was supposed to become a major textile exporter taking advnatage of duty free access to the USA- Hundreds of thousands were supposed to be emplyed in the industry by now

3) Accra was supposed to have a intracity rail network by now

These are just a few of the examples. In the West Ive noticed, most projects that you read about come into fruition, in Africa, most never do. "Country X to become a middle income nation by year XXXX" is a headline you often see. What a load of rubbish!

[myirakazi]

popa so you are cynical???

you are not a pessimist???

then whats the point in discussing anything if you will blare out the negatives???
debate yes... but you cant just dismiss any new proposal just because in the past some other proposal has failed..
i think we are all aware of the problems...but i think people posting and sharing information is being hopefull that africa is changing for the better....

dont get me wrong, i am well aware of how far behind we are and the evident issues 'self -made and otherwise' that we face... but i'd rather focus on the light at the end of the tunnel.

[popa1980]

I will report to the President that the partners are serious and should be taken as bona fide investors," Kiwanuka told journalists in Kampala yesterday.

He, however, said the firm had not provided a feasibility study on the project. He said the project would be located on a 200-sqkm land located in Sesamirembe, where Serulanda sect is based."

This proves my point. Not even a feasibility study.

[Kenguy]

Uganda has made progress over the years and I believe it will continue.

Before the late 90's, Kampala hardly had a skyline. The infrastructure was horrible.(though im not implying that its perfect now) Traffic lights were a novelty. Street lighting was rare. The city was still recovering from years of misrule and war.

Today, Kampala is changing.

Roads have been widened to accomodate the increase in traffic.

image hosted on flickr


Street junctions are being improved and traffic light controlled junctions are now common.

image hosted on flickr


Flyovers and bypass are being built around the city to ease congestion.

image hosted on flickr


image hosted on flickr


Highways are also being built in the rural areas like this one in Jinja in eastern Uganda (yet to be marked).

image hosted on flickr



Just give it time. I can bet most of the lnfrastructure projects planned in Uganda will see the light of day.

[Kwame]

Mukwano to Build Six New Factories

16 December 2008

Kampala — MUKWANO Group of Companies is to build six more factories next year to meet the increasing regional demand for its products, the managing director has said.

"The market for our products has grown so fast in the region. "To meet this overwhelming demand, we shall construct six more factories next year," Alykhan Karmali, said during the distributors' end of year party at the Golf Course Hotel, in Kampala.

He, however, did not say what the investment would cost. The Mukwano Group deals in a number of businesses which include manufacturing, processing and real estate.

"Over the years, we have grown to become East Africa's leading company in the production of fast moving consumer goods.

"Our growth is evident with new the projects and production plants we have established," Karmali said. He said there were significant changes in the domestic and international markets, which had increased the demand of their products like Sunseed oil, which is exported to the UK.

The group also promotes sunflower growing in northern Uganda. The group has been working in partnership with the farmers in the Lango sub-region for the past eight years.

The company provides farmers with high yielding sunflower seeds, extension services in modern agricultural practices and commercial farming.

The sunflower project in the region is credited for the dramatic improvement of the communities welfare.

The project has assisted more than 85,000 contract farmers with farm inputs and seeds. The processing plants will provide direct and indirect employment to thousands of people in region.

Mukwano buys a combined harvest of about 34,000 tonnes, but hopes to raise this to 300,000 tonnes within two years. At sh350 per kilograms, farmers are earning an estimated sh12b from the group. The success of the project has been because of four main pillars; availability of hybrid seeds, the use of best farming practices, the elimination of middlemen and a ready market by Mukwano.

In order to avoid the exploitation of the farmers by middlemen, the company has put into place a number of logistical and administrative structures to help the farmers access services directly from Mukwano without having to pay a third party.

Thus farmers are given packing bags and transport for their harvest. There are also visited by agents, supervisors and coordinators who are paid directly by Mukwano.

AllAfrica

[Matthias Offodile]

Thanks Kenguys, for the pics, very nice indeed I like to see improvement

[Kwame]

Government to Allocate Sh235 Billion for District Roads

1 February 2009

Kampala — THE Government plans to allocate sh253.4b for district road maintenance in the country in the next two financial years, works state minister John Byabagambi has said.

"We want to make sure that all roads in the districts are in good shape. A good road network is a catalyst for economic growth because other sectors depend on the adequacy and quality of the road network," Byabagambi said.

He was speaking at a workshop with local government leaders on the proposed policy changes for improving management of district roads at Imperial Royale Hotel in Kampala on Saturday.

Byabagambi said the workshop was aimed at discussing the proposed policy which would be presented to Parliament for approval by the end of March.

The policy changes include reviving the practice of routine maintenance by labour gangs, providing road equipment to all districts and to allocate sufficient operational funds.

Byabagambi said a full equipment unit comprising a motor grader, two tipper trucks, a wheel-oader, a water bowser, one smooth self-propelled roller, a pick-up truck, two motorcycles, and a pedestrian roller would be purchased for every district.

Other items to be funded include a bulldozer, excavator, mobile and regional workshops to be shared among districts.

The policy, Byabagambi said, also focuses on the re-establishment of road gangs in districts, whereby workers would be paid sh60,000 per month to maintain one mile per month within their areas of residence.

All Africa

[Kwame]

Some Hope as World Bank Funds Bus Plan

Frank Sserwaniko

4 February 2009

Kampala — The plan to replace commuter taxis with buses in Kampala has got new momentum after the World Bank offered to fund an initial study on efficient city bus operation.

Although the talk about buses replacing taxis has been around for decades, no feasibility study has been done.

In an invitation for expression of interest, the World Bank last week said it would finance services of consultants, including pre-feasibility studies for the development of long-term bus system designs for the Greater Kampala Metropolitan Area.

The estimated cost of the studies, to be conducted over four months, is $279,000 (about sh540m).

Steven Shalita, the World Bank communication specialist, said the institution would finance the pre-feasibility studies and would consider funding a more detailed study that may also include engineering designs.

"The bank support is in response to a request by the Government and Kampala City Council after identifying congestion in Kampala city as a major problem," Shalita said.

Discussing the National Transport Master Plan at Commonwealth Resort Munyonyo in December, stakeholders agreed to carry out feasibility studies as the first step towards introduction of buses in the city.

They also agreed that buses would operate alongside taxis until Jan2011 when the taxis would be phased out.

It had been agreed that the Cabinet would discuss the outcome of the feasibility studies by the first quarter of this year, but this is unlikely since the four-month long studies can only be completed by June.

Kampala City Council's attempt to introduce the buses in the city without a thorough system in place is facing several challenges like lack of adequate parking space, uneconomical operations due to congestion and lack of clear rules of entry, regulation and operation.

During evening hours, passengers scramble for the few available buses, yet operators say they are expanding with caution due to the unresolved challenges that make their operations less profitable.

Fred Senoga, the managing director of Pioneer Easy Bus Company, said the World Bank study is a welcome move.

"Although this is a long-term project, it is the future for us," he said, adding that the move would address issues like harmonisation of policies.

Pioneer has 13 buses plying different city routes.

An earlier study of the National Transport Master-Plan estimated that passengers would save at least 16 minutes per trip if buses replaced the 14-seater taxis within the Greater Kampala Metropolitan Area - an area stretching 30 kilometers from the city centre.

The study also estimated that there were about 7,000 commuter taxis operating in the city by 2003, with total seat capacity of 102,000.

It is estimated that about 1,500 buses would be required to deliver this necessary seat capacity.

All Africa

[Kwame]

Uganda Looks to Nuclear Energy

Ibrahim Kasita

15 March 2009

Berlin — AN advisory board to steer the uranium development strategy for Uganda has been formed, paving way for the creation of the national nuclear electrical power generation programme, IBI Corporation, a Canadian mining and investment company, announced last week.

Joshua Tuhumwire, the commissioner in the department of geological survey and mines in the energy ministry, Paul Sherwen, the chairman of Uganda Chamber of Mines and Elly Karuhanga, a director at IBI Corporation are the board members.

Others are Paul Harricks, a partner in Gowling Lafleur Henderson LLP, A J Coffman, the president of Far Country Management Services Inc and James Misener, the president of Paterson, Grant & Watson, Geophysical.

The programme consultants include Gary Fitchett, John Alton, and Dennis Mellersh, all premier managers in IBI Corporation.

"The board will be involved in preparing and presenting a proposal for national energy programme for Uganda," IBI Corporation said in a statement.

The formation of the advisory board follows a recent meeting between President Yoweri Museveni and Gary Fitchett, the IBI's chief in Kampala.

During this meeting, Museveni requested the national energy programme for Uganda proposals.

Fitchett outlined his company's conceptual uranium development strategy to the President.

IBI's uranium development strategy for Uganda views the country's potential uranium resources as a strategic mineral that should be used for the benefit of Ugandans through the development of a national nuclear electrical power generation programme.

The country is facing power supply shortage that started in the late 1990's due to a combination of low investment in the energy sector and low hydropower generation as Lake Victoria water levels, which feed the two hydropower facilities in Jinja, declined drastically, hurting on the economy.

Electricity generation fell to 100 megawatts from the installed capacity of 380 megawatts, forcing the Government to procure diesel-powered generators.

The future economic progress will depend to a large extent on its ability to foster business and industrial development through the provision of adequate and competitively priced electrical power.

A new 250 megawatt hydropower dam is under construction at Bujagali on the Nile, with at least two other dams expected over the next decade to meet future demand. But energy analysts predict that even with full utilisation of the potential resources suitable for hydroelectric power generation, the country would still face an electrical power shortfall.

To mitigate the shortage, IBI is proposing a nuclear energy strategy for electrical power generation using potential uranium resources.

The strategy proposes that IBI and the Government form a private sector/public sector partnership under which the firm would explore for and develop land with potential viable uranium resources to increase electricity production.

IBI holds about 2,000 square kilometres of land in Uganda, on which it has commenced exploration.

Uranium can also be used in the treatment of cancer patients, diagnostic procedures including organ scans, crop improvement through integrated nutrient management, level gauging in soft-drinks firms and assessing geothermal resources like those in Katwe and Kibiro in the Western Rift Valley.

The strategy comes at a time when even environmentally-conscious countries like Sweden, Finland, the UK and Germany are changing their attitude to nuclear power, and now regard it as a potential solution to concerns over carbondioxide emissions, high fossil fuel prices and dependence on imported energy sources.

Several African nations, including Algeria, Egypt, Morocco, Namibia and Nigeria, are considering nuclear power as an alternative to hydropower.

However, Uganda cannot mine its uranium resources until it has comprehensive laws in place that institute the required safeguards.

Another hurdle is the lack of skilled manpower in the sector, with less than a dozen personnel available to roll out the project.

To move forward, Atomic Bill was passed into law precipitating the setting up of regulatory framework with technical assistance from the International Atomic Energy Agency.

New Vision

[Xusein]

Neat. Africa is blessed with lots of uranium. It would be nice if it was used on the continent more than just imported. However, I think that hydroelectric projects should be done in tandem with this proposal.

[qweads]

I hope they thought about a safe way to store the nuclear waste because it tends to have a radioactive half-life of a few thousand years. This is not something that a small low-GDP country can just screw around with.

[Xusein]

They can get help from other countries in that issue. If it is their resource, why can't they use it for the optimum needs possible?

I don't know what kind of opposition there would be. As if the US actually considers Uganda a threat (or cares about it anyway).