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Norway donates Shs 5bn to refugees

The United Nations World Food Programme (WFP) in Uganda has received a significant boost in the form of a $1.3 million (Shs 5 billion) donation from the Norwegian government.

The funds will be used to provide hot meals for new refugee arrivals from the Democratic Republic of Congo (DRC) and South Sudan. This comes on top of a $1.7 million (UGX 6.4 billion) contribution made by Norway earlier this year, bringing Norway’s total support for WFP’s refugee initiatives in Uganda to $5.8 million (Shs 22 billion) for 2022/2023.

“As of 31 August 2023, more than 80,000 new arrivals from the DRC and South Sudan have been registered, adding to the existing 1.6 million refugees in Uganda,” said Anne Kristin Hermansen, Norway’s ambassador to Uganda.

“This funding underlines Norway’s commitment to the refugee response in Uganda.”

WFP STRUGGLES AMID FUNDING GAPS

Despite supporting 1.4 million refugees with monthly food and cash assistance, WFP faces significant financial challenges that force it to distribute reduced rations. The organization is currently providing 60% of the food ration to the most vulnerable refugees, 30% to moderately vulnerable refugees, and has ceased food assistance to the least vulnerable.

“This contribution is vital for us to meet the needs of both existing and newly arrived refugees,” stated Abdirahman Meygag, country director of WFP Uganda. “It will enable WFP to provide hot meals to new arrivals at transit and reception centers.”

SOARING RATES OF FOOD INSECURITY

The August 2023 Food Security and Nutrition Assessment (FSNA) survey revealed a worsening food security situation in Uganda’s refugee settlements, with an 11% increase in food insecurity compared to last year. Additionally, there is an anticipated rise in negative coping mechanisms due to the challenging circumstances.

FOCUS ON SELF-RELIANCE

In an innovative step, WFP is working on income-generating activities aimed at greater self-reliance for refugees and host communities. Norway has also contributed $2.8 million (Shs 10.5 billion) towards this self-reliance pathway, in line with the Government of Uganda’s Comprehensive Refugee Response Framework.

This additional funding aims not only to provide immediate relief but also to equip refugees with the skills and opportunities to move away from solely relying on humanitarian assistance to meet their essential needs.

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Roots initiative plants one million trees

Roots (Running out of trees), an initiative of the ministry of Water and Environment, planted one million trees at St Francis Xavier Bweya, Kajjansi, Wakiso district and across the country on October 6, 2023.

The chief planter was the minister of Water and Environment Sam Cheptoris who represented President Yoweri Museveni. This was yet another National Tree Planting day, organized by the ministry with private sector partners that included Uganda Breweries Limited, Stanbic Bank Uganda, ABSA Bank, Roofings and TotalEnergies EP Uganda, among others, and civil society partners.

The day’s activities across the country were coordinated by the ministry’s regional offices; Mbale for Eastern Uganda, Kwania for Northern Uganda and Mbarara for Western Uganda, while additional planting will be continued at district level by institutions and individual planters, the cumulative sum of which is expected to surpass a one million trees mark.

Cheptoris said Roots aims to restore Uganda’s tree cover by 200 million trees over a five-year period till 2026, planting 40 million trees each year, symbolizing a tree by every Ugandan.

He highlighted this year’s theme ‘Conserving Uganda’s tree species diversity through the establishment of tree seed banks’ as serving to remind us of our bio-diversity and unique heritage that provides us with food, medicine, building materials, fibre and economic support for our well-being, and to withstand climate change.

“Ministry of Water and Environment pledges to sustain the mobilization of the private sector, the public, civil society and development partners under the Roots umbrella, as a means of collectively tackling the current climate change issues. Geo-tracking of trees is also critical to the Roots initiative,” he said.

Roots emphasises planting of indigenous tree species. Hence species like Khaya species or mahogany, Melicia species/Muvule, Afzelia, Prunus Africana, sheanut tree, Canarium species, Warbugia, fruit trees, among others, were planted on that National Tree Planting day.

Jean Gavalda, director of Business Development and Corporate Affairs at TotalEnergies, reported that when Roots started in 2020, there were only five private sector partners, by 2022 they had grown to over 20 partners and now in 2023, they are over 30 companies, religious and traditional institutions, schools, government agencies, and development partners that have joined the effort.

Speaking on behalf of the private sector partners, Gavalda said: “The issue of the impact of deforestation on climate change shifts us off our very core as human beings and adversely as businesses. The cost to business is already evident with the floods, landslides and prolonged droughts that we have witnessed here.

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NAGRC&DB inaugurates new board, rolls out 100 dairy bulls

Ben Anyama is the new board chairman of the NationalAnimalGenetics Resources Centre and Data Bank (NAGRC&DB).

Dr Bright Rwamirama, the state minister for Animal Industry, introduced the new board on October 17 while officiating at the handover of 100 bulls to the beneficiary farmers following the official inaugural ceremony of the new board of directors of NAGRC&DB in Entebbe.

The board members include Dr Bilal Cabral Kibedi, Dr Henry Aaron Mulindwa, Teddy Alako and Dr Anna Rose Okurut Ademun. Others are Dr Herman Ssekiwunga, Dr Richard Urri Akule, Eng Robert Wajja Ssenozi, Anthony Raymond Epel, Sheila Mwine Kabeije and Dr Samuel Kanakulya Lubinga. Dr Peter Beine, the executive director, is the board secretary.

In his remarks, Rwamirama cautioned the new board to work cohesively, drawing on the members’ individual strengths and expertise to guide NAGRC&DB in fulfilling its mandate.

“Your decisions and actions will play a pivotal role in shaping the future of our animal genetics sector. Let us all embrace this journey with dedication and a shared vision for the prosperity of our nation’s agriculture. Together, we can achieve milestones for the benefit of our farmers, our livestock, and the entire agricultural landscape,” he said.

Later, Rwamirama commissioned the release of 100 assorted superior dairy breeding bulls to farmers who are members of dairy cooperatives identified across the country. According to Beine, this is a routine program of the centre and is conducted at al list 15 animal genetic resources centres located in different agro-ecological zones across the country.

“NAGRC&DB has a two-fold mandate: to play a leading role in the commercialization of animal breeding activities in Uganda; and to carry out development activities that enhance animal genetic improvement and productivity,” he said.

15 REGIONAL FARMS

Apart from the 15 regionally-situated centre farms and ranches, NAGRC&DB also addresses its mandate with a National Poultry Development Centre (NPDC), a five-tonne-per-hour animal feed production plant, the National Bull Stud and Semen Production Center at Entebbe and three liquid nitrogen production plants which service the entire country.

Others include eight regional community breeding satellite centres that facilitate access to artificial breeding services by farmers at the grassroots and an embryo-transfer services unit. Accordingly, NAGRC&DB breeds, multiplies and sells to the public, quality and affordable animal seed at subsidized prices.

These include breeding stock of dairy and beef cattle, goats, poultry, pigs, fish fingerlings, semen for breed improvement programs as well as embryos for pure-breed multiplication.

Using its vast land holdings, NAGRC&DB also multiplies and avails pasture and fodder seed and planting materials. They include Chloris gayana, brachiaira, panicum maximum and sugar/pakchong Napier varieties). Through the food and animal feed production program, the agency massively produces quality and affordable animal feeds on large scale (silage, hay and compounded animal feeds) which it sells to farmers at subsidized prices.

Currently, according to Beine, the sale of hay and silage is ongoing at Kasolwe stock farm in Kamuli, Lusenke in Kayunga, Maruzi ranch in Apac, Aswa ranch in Pader, Gwot Apwoyo in Nwoya/Pakwach, Rubona in Bunyangabu and at Nshaara, Ruhengyere and Sanga in Kiruhura Districts at attractive prices.

The role that livestock plays as a sure guarantor against poverty within poor and vulnerable communities in Uganda and the mass awareness campaigns that have been conducted about the same has created a huge demand for high-quality breeding stock for dairy cattle, beef cattle, goats, pigs, multi-purpose poultry and fish fingerlings.

In order for successful implementation of government programs like the Parish Development Model (PDM) that promote livestock farming, the supply of this breeding stock has to be assured and this is where NAGRC&DB centres are positioned to meet this growing demand.

Anyama adds that through its flagship program – the Community Based Breeding Outreach Program (CBBOP), for instance, NAGRC&DB has played a cardinal role in the 190 per cent increase in milk production registered in the country.

“Pig and poultry farmers have also greatly benefitted from the multiplication programs of these genetics at the NAGRC&DB centres contributing to increased household incomes and nutrition security. These continuous animal genetic improvement efforts by the Centre are aimed at realizing a critical mass of resilient and highly productive dairy and meat animals within the livestock communities across the country and steady growth of the animal industry.”

HIGH PEDIGREE BULLS

The current batch of bulls being sold comprise of pure Jersey, Ayrshire, Friesian and Simmental breeds. The pedigree (parentage performance) of each of these bulls indicate exceptional breed traits such as above-average milk production, high milk solids and other important dairy traits like ease of calving, early maturing and longevity in the herd.

It is anticipated that farmers looking to have these traits namely faster growth, increased milk production and milk solids, assured fast calf growth, ease of calving and longevity in the herd and ease of management (higher efficiency of feed conversion) shall benefit greatly from these bulls.

Furthermore, these high-value bulls are being availed to the farmers at a subsidized price (Shs 1,5m) which, according to Beine, is between 50 per cent and 75 per cent of their local market value. Beine adds that they follow the institutional policy on availing genetics to the public and adherer to the Public Procurement and Disposal of Public Assets Authority (PPDA) guidelines while selecting the beneficiaries.

The current beneficiaries were chosen through a competitive process using the PPDA asset disposal methods, guidelines and regulations. Additionally, the agency uses these programs to generate non-tax revenue (NTR) for the consolidated fund as obligated.

“We encourage the public to come to NAGRC&DB for these and other genetics when adverts are made about their availability,” he says.
“It is our mission to improve the national herd and flocks through availing such well-recorded genetics with an assurance that they shall cause the desired improvement in farm production and productivity at the destination farms.”

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Susan Magara murder case: DPP drops charges against prime suspect

The director of public prosecutions, Jane Frances Abodo, has withdrawn kidnap and murder charges against Patrick Agaba, commonly known as Kasaija or Agaba Pato, the primary suspect in the murder of 28-year-old Susan Magara, a cashier at Bwendero Dairy Farm.

The decision came be- fore Kampala High court Criminal division registrar Lawrence Tweyanze during hearing on Monday, October 16. Ten individuals had initially been accused in the kidnap and subsequent murder of Magara. Other suspects include Abas Buvumbo, Yusuf Lubega, Hussein Wasswa, Muzamiru Ssali, Hassan Kato Miiro, Hajara Nakandi, Abubaker Kyewolwa, Mahad Kasalita and Ismail Bukenya.

It was alleged that the accused kidnapped Magara on February 7, 2018, intending to secure a ransom. However, on February 27, 2018, in Kigo, Wakiso district, they brutally murdered her.

Senior State Attorney Irene Nakimbugwe presented the court with a withdrawal letter from DPP Abodo on Monday, stating that she had lost interest in pursuing charges against Agaba. Article 120 of the Ugandan Constitution empowers the DPP to institute or withdraw criminal charges without providing reasons.

Notably, although implicated in this case, Agaba had never been formally arraigned and charged for this crime. He was extradited from South Africa on May 15, 2019, following Magara’s murder but was initially charged with kidnapping in a separate case before Buganda Road Magistrate’s court.

Agaba was later granted bail after spending several months in Luzira prison on remand. The case had stalled due to a funding shortfall within the judiciary, an issue reportedly resolved recently. As a result, Registrar Tweyanze had no choice but to endorse the withdrawal of charges against Agaba.

The case has drawn significant attention, shedding light on an alleged kidnap-for-ransom scheme orchestrated by the suspects, some of whom remain at large. Evidence suggests that the group planned to target affluent individuals and their families.

Magara, tragically, was their first victim. Prosecution alleges that after securing $200,000 (approximately Shs 700 million at the time) in ransom money, the kidnappers killed Magara and disposed of her body. Several assets, including land titles and motor vehicles purchased using the ransom money, have been recovered by the police.

The case has been adjourned to October 23, 2023, for further hearings. 

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Nabbanja: Let’s pay whistle-blowers

In a significant development following the launch of the Ombudsman Complaint Handling Manual on World Ombudsman day, Prime Minister Robinah Nabbanja has proposed amendments to the Whistleblowers Act.

Nabbanja recommends an amendment to the Whistle-Blowers Act that would offer a reward for individuals who disclose information that helps prevent the embezzlement of public funds. This proposal aims to further incentivize whistle-blowers and enhance government accountability.

The announcement was made during an event at Mestil hotel in Kampala on October 12, 2023, where various government officials gathered to commemorate the occasion. The event’s theme, “Raising Citizens’ Awareness of the Ombudsman’s Role for Improved Service Delivery,” emphasized the importance of enhancing public understanding of the ombudsman’s function in improving services.

The gathering was attended by notable figures including Prime Minister Robinah Nabbanja, Inspector General of Government Beti Kamaya, Deputy IGG Anne Twinomugisha Muhairwe, Minister of Ethics and Integrity Rose Lilly Akello, Minister of Public Service Muruli Wilson Mukasa, and Justice of the Court of Appeal Geoffrey Kiryabwire.

In Uganda, the inspector general of government serves as the national ombudsman, responsible for ensuring access to quality public services, overseeing adherence to rules and procedures by public officers, and resolving conflicts between citizens and public institutions.

This role includes addressing complaints from both citizens and public officers. In her address, Inspector General of Government Beti Kamaya underscored the need for collective action against corruption, stating, “We must stand together if we are to win the war against corruption.”

Kamaya also emphasized the importance of involving the public service in developing effective strategies to combat corruption. Deputy IGG Anne Twinomugisha Muhairwe encouraged public officers to act as pillars of hope, acknowledging challenges such as limited operational funds and difficulties in gathering evidence for past cases.

State Minister of Ethics and Integrity Rose Lilly Akello highlighted the importance of ombudsmen as independent state officials who investigate citizen complaints against government institutions. She praised the cost-effectiveness of this alternative conflict resolution method.

Minister of Public Service Muruli Mukasa expressed support for the Inspectorate’s anti-corruption efforts, declaring, “As long as the IGG is leading the charge against corruption, we are ready as men and women to join the fight.”

Justice Geoffrey Kiryabwire of the Court of Appeal urged the inspector general of government to consider alternative dispute resolution methods to alleviate case backlogs, suggesting citizen involvement as a more cost-effective and mutually beneficial solution.

The event marked a significant milestone in Uganda’s commitment to improving service delivery and combating corruption, with key government figures pledging their support.

The proposed amendment to the Whistle-Blowers Act could potentially encourage more individuals to come forward and contribute to the fight against corruption in Uganda.

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Why bailing out Bitature again, is bad

In the face of economic downturns globally, governments have stepped in as a white knight to save struggling businesses and investors.

The rationale for this support best known as bailouts is that the businesses in question represent the entrepreneurial culture of their societies and are the livelihood of their population because they provide jobs. Noble as the gesture is, it has proved to be fruitless in cases where governments have chosen to keep toxic businesses afloat, ventures that are better off left alone.

These businesses have underlying issues that are never addressed, and for that reason use the funds pumped into them to patch up holes in their balance sheets. Connoting that the ailing businesses find themselves back in their trifling position in a matter of years. This is evidenced in the case of American motor company General Motors [GM] which in 2009 got a $50 billion bailout from former US President Barack Obama’s administration when it reached its nadir during the financial crisis.

In the last 13 years; however, its share price has dropped by 17.3 per cent culminating in a dip in market valuation of $12.6 billion, not counting $11.2 billion the corporation has cost the US government in losses. This is because GM received a stimulus cheque but its underlying problems: bad business decisions, poor innovation and plunging, sales weren’t addressed.

Which validates the hypothesis among a section of economists that investors and businesses that invest poorly should be left to go bust because by design the economy spits out bad investments planted into it, and keeps the good ones, and any form of bailout merely delays the inevitable.

EXAMPLE OF SEMBULE

Back home in Uganda, we were faced with a similar scenario when Christopher Sembuya, one half of the Sembule brothers in a January 2014 NTV television interview, Tuwaye, hosted by Frank Walusimbi, disclosed that when they failed to pay off a long-term loan from Nairobi-based PTA bank, which they took out to expand their operations, they went under receivership.

The government, through Bank of Uganda, came to their rescue, fully paying off their creditor. All the same, the government bailout wasn’t enough to save the Sembule empire as up to the time of his death in 2022 Sembuya and members of his family appeared disgruntled in broadcasts reminding the current regime of the help they accorded them during the bush war.

They asked the government to come to their rescue one last time. No clairvoyance is needed to deduce that another bailout was going to yield the same fruitless result if the issues at the core of Sembule’s business empire weren’t addressed. Sembule Group was a conglomerate that was heavily invested in the steel, insurance, finance and banking, agriculture, electronics, media, and real estate industries.

Therein lay the problem, the investors over diversified their empire making it expensive to effectively manage/finance considering they had to operate during a murky period of war, insecurity, economic collapse, and financial restructurings; that is, the 1970s, 80s and early 90s.

This exposed them to more risk, and subliminally inferred that the proprietors could have resorted to brute force management schemes to oversee their business empire. In Warren Buffet, billionaire and maverick investor’s words: “Diversification is protection against ignorance”. “It [diversification] is a perfectly sound approach for someone who feels they don’t know how to analyze businesses.”

He continues to say that there aren’t that many wonderful businesses that are understandable to a single human being in all likelihood to trade in.

“It is a confession in our view [Warren Buf- fet and his business associate Charlie Munger] that you don’t really understand the businesses that you own”.

Another investor following the same script as Christopher Sembuya and his brother Henry Buule [Sembule] in business practices and in having an appetite for bailouts is Forbes-ranked millionaire Patrick Bitature. In an article ‘Government secretly giving bailouts?’ published in The Independent on September 5, 2016; it is avowed that Bitature was quietly paid $14 million [Shs 47 billion] by the government because his Simba Group was one of the companies that was high on a Shs 1.3 trillion [~$347.8 million] debtor list of local commercial banks.

Fast-forward to the present day, and highly reliable sources report that government is gifting the distressed businessman $66 million [over Shs 246.6 billion] as bailout money under the guise of buying his Electromaxx thermal plant in the West Nile region against the counsel of Auditor General John Muwanga.

This development and the businessman’s attempt at beguiling his South African creditor suggests that there is trouble in the smooth-talking investor’s empire. On July 31, 2023, Bitature was directed by the International Chamber of Commerce Court of Arbitration in London to pay his creditor — Vantage Capital an accrued sum of $35.8 million [Shs 133.8 billion], and costs amounting to $357,318 [Shs 1.3 billion], among others.

Interestingly, prior to this ruling Bitature tried to finesse his way out of paying this debt by using the Ugandan legal system to disregard Vantage Capital’s debt on grounds that the South Africans weren’t cleared to lend in Uganda. This filibuster led to Vantage Capital taking the case to London.

The cockroach theory in finance states that if bad news about a company comes to light, there will be more bad news lined up in the near future because where you see one cockroach, there will always be another cockroach. Going by this theory, it is evident that this debt isn’t Bitature’s only amount due; there will be more of his problems aired out in the open.

OVER DIVERSIFICATION

More so, the businessman’s entrepreneurial movements are identical to those of the Sembule Group. And even though he is more polished, their business strategies are alike because like Sembule, Bitature has got his hands a mile-deep in almost every ‘profitable’ sector in Uganda.

That’s not sustainable. His Simba Group is made up of: Simba telecom [telecommunications], Simba Properties Investment Company Ltd [real estate]; Simba Mining Company [mining], Electro Maxx [energy]; Simba Farms [agriculture], Ibanda University [education]; Rwenzori FM [media], Kampala Protea hotel and Naguru Skyz hotel [hospitality].

Besides that, he holds a slew of executive appointments that place him on the board of Umeme Uganda Limited, Bollore Logistics Uganda, Mulago national referral hospital; and an ambassadorial appointment — he is an Honorary Consul to Australia. With his schedule jammed with this calibre of commitments, it is highly unlikely that he could give his undivided attention to his business empire to make it consistently profitable.

Billionaire investor and Dallas Mavericks owner Mark Cuban had this to say about diversification on Alan Muray’s interview: “... you cannot diversify enough to know what you’re doing”.

On the matter of government bailing out businesses and Bitature particularly, senior research fellow at Economic Policy Research Centre, Paul Lakuma Corti had this to say, “Bailouts are not bad because government needs to intervene in critical sectors to save them, that is the work of government”.

He goes on to give an example: “Let’s say there are a million jobs in a sector, or, a company provides ten thousand jobs, there’s justification for a bailout”. Paul Lakuma goes on to warn that failure to do so would spread contagion in the financial sector in the case that a giant falls.

The economist, however, stresses the vitalness of due diligence in awarding bailouts and this he emphasizes is where the typical Ugandan bailout falls short.

“We are bailing out people who are damaged, people who aren’t employing many people or paying big salaries.” Lakuma observed that for the most part, Ugandan bailouts are based on ‘technical know-who’.

The research fellow advises that it is pragmatic for government to take control of the management of businesses they bailout until they become profitable, and pay their bailout in full; or take the private equity route of getting the business in question on its feet before selling it to an investor who can ably run it.

Nonetheless Lakuma approves of Bitature’s bailout because he is the poster child of Uganda’s corporate structure. And unlike other indigenous businessmen who run their estate like a family business, Bitature has shown that a local Ugandan can build a corporate structured business.

Taking everything into account, bail-outs and stimulus cheques come with a caveat which is: for the most part they keep bad businesses in the financial ecosystem at the expense of vibrant sprouting ones which would otherwise have benefited from the boost.

Bailouts also give businessmen/investors a false sense of entitlement as they inherently believe that the government should always come to their rescue in times of financial distress because they are mass employers. This encourages them to ignore sound financial and economic data in strategic business making.

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