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@observer Wed, 20 Sep 2023 02:48:27

Why ministers hate speaker Among

In a move that startled the nation, Speaker of Parliament Anita Among recently suspended a parliamentary session due to the absence of all 82 ministers.

While 20 ministers graced the assembly the next day, it didn’t prevent Among from reading them the riot act. Unapologetically, she pointed out that personal grievances against the presiding officer shouldn’t obstruct national duty.

“You may not like the presiding officer, but you’re here to work for your people. Those saying they didn’t attend because they dislike me should remember their primary responsibility is to the nation,” she emphasized.

Among also warned that ministerial attendance would be a critical factor in future reshuffles by the president.

“I want the chief executive of the country to know, and this goes to the Appointments Committee, the first thing we’ll check is how many times you attended parliament,” she declared, met with applause from attending MPs.

But the underlying question remains—why are ministers dodging their parliamentary duties?

Interviews with several MPs, who spoke on the condition of anonymity, reveal a problem rooted not just in the parliament but also within the executive branch. A couple of State House officials agree, suggesting that the nature of the current ministers makes effective duty execution a challenge.

FISHERMEN CABINET

“In one significant issue, the current presidential term has seen the appointment of individuals who are ill-suited for their roles. The president, colloquially known as ‘Mzei,’ has chosen people he refers to as ‘fishermen.’ What can we realistically expect from them? It has come to the point where, if the president is not present to chair the Cabinet meetings, nobody else does. During the tenures of former prime ministers Amama Mbabazi and Ruhakana Rugunda, they would step in to lead in the president’s absence. Now, however, we have Prime Minister Robinah Nabbanja, who has openly stated that she feels incapable of overseeing individuals who are more educated and senior than she is,” said a State House staffer.

This situation brings to light a reportedly dysfunctional cabinet, led by a prime minister who acknowledges her limitations in managing ministers more educated or senior than her. A State House source paints a bleak picture of the current executive leadership.

“You have Prime Minister Robinah Nabbanja, who is clearly out of her depth. Then there’s the first deputy prime minister, Rebecca Kadaga, who seems to be disengaged as she approaches retirement. The second deputy prime minister and deputy leader of government business, Moses Ali, has been unwell recently. The third deputy prime minister, Rukia Nakadama, is also not performing at her best. Complicating matters further, Nabbanja can only delegate responsibilities to Nakadama. The other two deputy prime ministers are her seniors, and Kadaga in particular has no regard for Nabbanja,” the source said.

To exacerbate tensions, Among and Prime Minister Nabbanja are reportedly at loggerheads, an animosity that has reached President Yoweri Museveni. Each accuses the other of undermining their work. Nabbanja alleges that Among allows opposition MPs too much latitude, while Among counters that she won’t be undermined by ministers, emphasizing her loyalty to President Museveni over party affiliations.

In fact, the feud between the two leaders has escalated to such an extent that it has come to the attention of President Museveni, with both sides accusing each other of failing in their respective roles. Prime Minister Nabbanja reportedly told Museveni that Speaker Among is undermining the work of the National Resistance Movement (NRM) in parliament.

She accused Among of allowing opposition MPs the latitude to openly criticize not only the party but also its chairman. Nabbanja further claimed that Among is disrespectful towards ministers, often berating them and failing to shield them from unfair attacks by MPs.

On the other hand, Speaker Among told Museveni that she is equally frustrated with how ministers are attempting to undermine her authority. She clarified that she identifies more as a “Musevenist” rather than an NRM member. Consequently, she asserted that Nabbanja and others within the NRM shouldn’t expect her to carry out their responsibilities just because they belong to the same political party.

“The feud between Nabbanja and Among is less about ideological differences, and more a power struggle within Museveni’s circle,” said an MP, outlining the political landscape that has paralyzed both Parliament and the Executive.

Interviewed for this story, Charles Odongotho, the head of Communication at the Office of the Prime Minister (OPM), stated, “As the spokesperson for the OPM, I am not aware of any ‘rocky’ relationship between the two senior government officials in question. I may need to inquire about the nature of their relationship. What I can confirm is that both individuals, as members of the Parliamentary Commission, are legally obligated to collaborate harmoniously in their respective constitutional roles for the benefit of the Ugandan people.”

“As the Leader of Government Business in Parliament, the prime minister collaborates with the speaker to prioritize legislative agendas. Regarding allegations that ministers are not attending parliamentary sessions, this issue was recently addressed on the floor of parliament. My superior, the 3rd deputy prime minister, Rt. Hon. Rukia Nakadama, has already provided a comprehensive response to this matter, and I have no intention of deviating from her statements.”

TOP OF FORM

With rumors of a ministerial reshuffle in the air for the past two months, the nation is anxious to see how President Museveni will recalibrate his team. Yet as the days go by, what is abundantly clear is that the current configuration is unsustainable. It has led to not just a parliament that can’t convene properly but a nation that watches as its leaders focus more on personal grievances than on the collective good.

It’s a situation that calls for immediate redress. Otherwise, Uganda risks perpetuating a cycle where the very institutions designed to serve the people are instead doing a disservice to democracy itself.

NAVIGATING A POWER IMBALANCE

As the dust settles from the recent dramatic suspension of Uganda’s parliament by Speaker Anita Among, a deeper issue emerges, highlighting the complex dynamics between the ministers and the legislative body. One MP, speaking anonymously, offered insight into why ministers seem reluctant to engage actively in parliamentary sessions.

POWERLESS MINISTERS

Like the prime minister, an MP who spoke on condition of anonymity told us that ministers have lost much of their previous authority, making them hesitant to fully engage in parliamentary activities without prior consultation.

“Most of our current ministers lack the power to make commitments on behalf of the government. Parliament expects immediate answers, yet these ministers can’t provide them without first seeking approval. They come to parliament not as authoritative figures, but merely
as messengers. This is why they’re unable to provide information they haven’t been briefed on. Additionally, there are some ministers who are simply incompetent and unable to answer even basic questions. These individuals often avoid attending parliamentary sessions altogether,” the MP stated.

The trend paints a picture of a ministry hamstrung by bureaucracy and, in some instances, marked by outright incompetence.

LACK OF CLOUT AMONG PRESIDING OFFICERS

Apart from issues within the executive branch, the legislative arm of the government also faces challenges, according to MPs we have interviewed. These MPs, who have experience with past presiding officers prior to Among and Tayebwa, argue that besides the personal animosity between the speaker and some ministers, the current presiding officers lack the authority that their predecessors commanded.

“If you don’t have the kind of influence that commands respect, then you need to be extremely intelligent. As it stands, neither of our current speakers possesses these qualities. Consequently, people don’t feel obligated to appear before them. They are relatively young, both in terms of age and political experience, even within our own party. They are newcomers who were rewarded for joining the NRM; so, naturally, you will find senior party members and ministers reluctant to subordinate themselves to these junior figures,” one MP said.

Specifically concerning Speaker Among, ministers have expressed dissatisfaction with how she has treated some of their colleagues. To date, parliament has censured State Minister of Housing Parsis Namuganza and recommended that Monica Musenero, minister of Science, Technology and Innovation, and her Gender, Labour and Social Development counterpart, Betty Amongi, step aside.

“When you see Mwine Mpaka being ap- pointed to lead an investigation, you know the speaker’s influence is at play, as he has become the face of accountability within parliament. So, if Among is orchestrating these investigations, how can ministers be expected to have a favorable view of her?” the MP questioned rhetorically.

A PATH FORWARD?

In an interview with this newspaper, Asuman Basalirwa, a close confidant of Speaker Among, asserted that ministers do not need to have personal affinities for the speaker or her deputy to fulfill their parliamentary duties.

“We can maintain a working relationship even without being friends. First and foremost, it’s a legal requirement for ministers to be present in parliament when there’s business on the order paper requiring their input. Most of the time, they’ve already submitted written responses to MPs; so, it begs the question: why wouldn’t they want to come and read their own statements?” said Basalirwa, the MP for Bugiri Municipality.

He further argued that disagreements with the speaker could be resolved through dialogue without hindering the functioning of parliament.

“When there are fundamental differences, mechanisms should exist to address them. For instance, there was a time when the speaker had a significant disagreement with Deputy Attorney Jackson Kafuzi over the Anti-Homosexuality Bill, now an Act. She initially banned him from representing the government in parliament on any issue, but after discussions, the matter was resolved. So, if you’re a minister, how long can you realistically afford to stay away?” Basalirwa added.

INSTITUTIONAL OVERSIGHT

In response to our inquiries, Chris Obore, the director of Communication and Public Affairs at parliament, emphasized that it is the role of parliament to exercise oversight over the cabinet, as mandated by law.

“Oversight involves asking difficult questions in good faith. The presiding officers were elected by the MPs themselves; so, if any MPs claim to despise them, they are essentially despising themselves,” Obore noted.

He also contested the notion that the speaker and deputy speaker are junior members within the party.

“The speaker and deputy speaker were elected by all MPs, including ministers. Anyone who claims to despise them is, in effect, inadvertently despising themselves,” he said.

Pushing back against criticisms that label the two presiding officers as junior members, Obore added, “The speaker and deputy speaker can’t be considered juniors within the party, as a political party consists of cadres of all ages. It was the party that established the current parliamentary leadership, fully aware of their value.”

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@observer Wed, 20 Sep 2023 02:06:16

Defying the ban: NUP voes to continue political tours

DAVID LEWIS RUBONGOYA, the secretary general of the National Unity Platform (NUP), stated that his party has no intention of halting tours led by their party president, Robert Kyagulanyi Ssentamu.

In an interview with Baker Batte Lule, Rubongoya asserted that the police have no authority to permit or prohibit political assemblies. Despite last week’s ban on their tours, he confirmed that the party will proceed with visits to the locations they have scheduled.

Were you surprised by last week’s decision by the Uganda Police to ban your party’s political tours?

Actually, we were surprised that they allowed us to continue our activities for as long as they did during the entire first phase. It seems they weighed the cost-benefit and realized that hundreds of thousands of people were turning up to hear our message, which I believe led them to impose the ban.

Initially, they cited concerns about terrorism targeting our president Robert Kyagulanyi, but when that excuse didn’t hold up, they resorted to this ban. It’s clear they’ve been looking for any possible reason to halt our activities.

Last week, Kyagulanyi said you are planning to defy the ban. Isn’t this setting the stage for confrontations, as we’ve seen in the past?

We have no intention of halting our tours. While we are law-abiding citizens and will notify the authorities of our next phase as required by law, we’re not asking for permission. The police seem to be acting in a political capacity, as evidenced by the letter from Deputy IGP Tumusiime Katsigazi, which looked like it could have come straight from the NRM Secretariat, as our president pointed out.

We are not seeking violence or confrontation. However, if the authorities choose to respond in such a manner, what can we do? Our focus is on exercising our constitutional rights; we are not willing to let those rights be undermined.

What do you hope to accomplish with these tours?

Our goal is to galvanize the public, drawing on Article 3 of the Constitution, which empowers Ugandans to use all available means to restore a constitution that has been violated. Although we are committed to non-violence, we aim to build a critical mass of Ugandans who will rise up in their millions to bring an end to a regime that refuses to adhere to the Constitution.

Is there a specific timeline for achieving this?

I don’t believe there is a fixed timeline for this effort. Our primary focus is to raise awareness among the people that this issue concerns the country, not just any individual. The change could happen immediately, or it might take some time, but our responsibility is to continue spreading this message.

How should observers interpret the large crowds attending your tours?

Politics is often measured by crowd size, and the crowds at our events serve as a barometer for the level of support a leader has in a given area. Historically, large crowds have been a powerful way to send a message across a country. We’re aware that some politicians, even here in Uganda, go as far as hiring crowds or busing people in to boost their numbers.

For us, that’s not an option—partly due to budget constraints, but mainly because we don’t need to. People willingly come to hear our message. Our events attract a diverse audience, from young to old, many of whom walk several kilometers to hear our leader speak. This speaks volumes about their commitment and determination to our cause.

How do you respond to claims that people attend your events just to see a popular artist?

It’s rather disingenuous for those in the NRM to make such claims, especially when they’ve gone to great lengths to abduct, imprison, and even kill supporters of someone they merely label as a ‘singer.’ If Robert Kyagulanyi was just an artist, why did they feel the need to resort to election rigging and violence?

The votes he received, even amidst widespread cheating, speak for themselves. This narrative that people come to our events just to see
a performer is simply dishonest, and they know it. It’s consistent with how they’ve tried to delegitimize their opponents in the past, downplaying the significance of crowd sizes. But the reality is, these crowds matter, and they know it. We were surprised that these tours were allowed to continue for as long as they did.

What strategy did you employ to make this happen?

We were somewhat surprised, but it also made sense given our ongoing efforts. Firstly, the crimes committed against our supporters in November 2020 and early 2021 have been referred to the International Criminal court (ICC). There’s individual accountability involved, with names of district police commanders, regional police commanders, and other officers now before the ICC.

So, they might be reconsidering their actions due to the potential legal repercussions at an international level. Unfortunately, over 20 of our supporters are still missing, and I feel that the media isn’t giving this issue the attention it deserves.

Secondly, President Museveni’s son has been politically active in an unlawful manner. They were probably trying to find a way to justify that but couldn’t. Even though they usually lack a moral compass, allowing him to engage in politics while preventing Hon Kyagulanyi, who leads a legally registered political party, from doing the same may have presented a moral dilemma for them.

Police claim you deviated from the agreed-upon plan by holding processions in the roads. How do you respond to that?

The police are being dishonest. Their own representative, Muhoozi, has been holding processions and engaging in various activities. The only difference is that he’s been waving at buildings and possibly transporting people to his events.

They’re making efforts to stop us because they’re genuinely concerned. General Museveni has been listening to a lot of propagandists and was under the impression that our movement was just a passing phase. However, they’re now realizing the gravity of the situation as the people of Uganda are determined to bring about change.

Concerns have been raised about Kyagulanyi’s messaging, with some critics labeling it as sectarian. How do you respond to these claims?

Those making such claims are both dishonest and disingenuous. If you examine the messages our president has been delivering, you’ll find that they are tailored to each specific region he visits. In Ankole and Kigezi, he addressed the issue of marginalization.

In Busia, he talked about the gold industry and how locals are being pushed out. In Bugisu, he discussed the Bugisu Cooperative Union and how Museveni is exploiting it.

Therefore, when he speaks to the Baganda, it’s misleading to label his messaging as tribalistic and divisive. Critics seem to bring up tribalism selectively, focusing only on his interactions in Buganda, because they’re aware of the injustices there and are afraid of his message. But it’s important to note that our party and our president believe in national unity. Kyagulanyi doesn’t just talk about it; he embodies it through his relationships and actions. He is a true advocate for national unity, not just in words but in deeds.”

bakerbatte@gmail.com

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@observer Wed, 20 Sep 2023 02:24:42

Atiak sugar factory faces double trouble: Fire hazards and infrastructure delays

Fire outbreaks, delays in government procurement of machinery, the construction of the Aswa bridge, and ongoing financial distress are adversely affecting the operations of Atiak Sugar Factory, according to information obtained by The Observer.

Situated 17 km from the Gulu–Nimule road in Amuru district, Atiak Sugar Factory is a subsidiary of Horyal Investments Holding Company Limited. The factory was commissioned in October 2020 and has an annual production capacity of 66,000 tonnes.

The company has been financially strained since the closure of Crane bank in 2017, one of its key creditors. After the bank was sold to Dfcu, the company couldn’t restructure its debt until the Ugandan government stepped in as an equity partner. In May 2018, the government, through the Uganda Development Corporation (UDC), acquired 10.1% of shares worth Shs 20 billion to help complete the factory.

In July of the same year, an additional Shs 45 billion was invested, raising the govern- ment’s stake to 32%. By April 2019, the company requested another Shs 24 billion from the government for the construction of staff houses and offices, which increased the government’s share to 40%.

Mohamud Ahmed, the director of Planning and Business department at Atiak Sugar Factory, stated that the first capital injection comprised ordinary shares. The government has spent a total of Shs 80 billion through UDC, securing them 40% ownership in the company. Ahmed clarified that no additional resources from UDC were needed to complete the factory; rather, extra funds were allocated for sustainability measures, such as irrigation and housing for workers.

Despite the capital investments, the company has been criticized by several legislators for failing to produce sugar. They have called for an audit to scrutinize the funds invested in the company. As for equipment, the government allocated Shs 108 billion in 2022 for the purchase of agricultural mechanization tools under a finance lease arrangement.

Benson Ongom, director of Corporate Affairs and Public Relations at Atiak Sugar, stated that they have received 48% of the equipment from UDC, which includes graders, wheel loaders, excavators, chop harvesters, track sprayers, and seeding machines.

“We expect to receive the rest of the equipment by January. However, we aim to have sufficient machinery by the end of November to commence logistical work and planting activities,” Ongom said.

In 2019, President Museveni commissioned the upgrade of the Bibia-Nyimur road and the construction of the Aswa bridge over River Aswa. The infrastructure was meant to facilitate the transportation of sugarcane from Lamwo district to Atiak Sugar Factory.

However, The Observer’s visit to the site revealed that construction of both the road and the bridge has not yet commenced, despite funds being released to contractors in October 2020. A 30% advance payment has already been made, but no progress is evident on the ground.
Sobetra Otada Joint Venture, the company contracted to build the bridge, briefly set up temporary structures before abandoning the site.

The undisclosed company tasked with upgrading the road has yet to appear. When questioned, Allan Sempebwa, spokesperson for the Uganda National Roads Authority (UNRA), stated that the bridge had been completed long ago but promised to double-check the information.

Horyal Investments Holding Company Limited established a 15,000-acre farm in Lamwo district, 5,240 acres of which have been cultivated.

“It’s crucial for the government to inform us about delays, especially when public funds are involved,” said Mohamud Ahmed.

The stalled projects have led to financial losses for farmers, who now must travel 280 kilometers instead of 52 kilometers to deliver their produce. In December 2021, a fire destroyed 1,900 hectares of the sugarcane plantation, resulting in a Shs 19.1 billion loss and disrupting production.

Since then, 350 hectares have been revived for use. Bunty Seeruttun, the director of Agriculture, noted that fires often start during the dry season for various cultural and situational reasons. Fire prevention is a key focus moving forward, with four fire trucks and fire lines established around the plantation.

Despite a slow start due to limited sugarcane availability, Mohamud Ahmed emphasized that the factory has an original capacity of 3,500 tonnes per day, requiring 140 acres of sugarcane. Currently, production is limited to 50kg and 25kg bags primarily sold to Kenya, South Sudan, and within the sub-region.

The company aims to resume full-scale production by late 2024 and has decided not to sell its products in Kampala due to high transport costs.

“In the sugar industry, we agree on sugarcane and sugar prices annually. The biggest variable affecting our prices is transportation,” Mohamud concluded.

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@observer Wed, 20 Sep 2023 01:43:52

Bigirimana publishes provocative book on the magic treasures of sex

Pius Bigirimana, the Secretary to the Judiciary, has delved into the realms of human intimacy with his new book titled, Naked Truth: A Conversation about African Sex Magic Treasures.

In this thought-provoking work, Bigirimana challenges conventional perspectives on sex, arguing that it transcends mere physicality and encompasses emotional, spiritual and physical elements. The book critically analyzes the profound societal shifts caused by technological advancements and socio-anthropological changes, which have transformed the dynamics of human relationships and sexual encounters.

Bigirimana contends that these shifts have led to the commoditization of relationships, where personal pleasure takes precedence over the commitment of love. In a society increasingly characterized by short-lived affairs, Bigirimana emphasizes the need for individuals to take responsibility for their pleasure.

He observes that decisions are often made without considering their consequences on children, spouses and extended families, perpetuating a cycle of emotional detachment. One remarkable aspect of Bigirimana’s work is its focus on the institution of marriage as the centre for understanding the meaning and technique of sex.

He asserts that sex, when understood and practiced within the context of a committed relationship, can preserve its original purpose and vitality. Bigirimana’s book also delves into the intricate facets of what constitutes “good sex.”

He explores tangible and intangible factors such as imagination, conscience and physical surroundings, which can significantly enhance the quality of a sexual experience when consciously incorporated by both partners.

Furthermore, he underscores the uniqueness of each individual’s sexual disposition, asserting that it is the duty of spouses to explore and understand each other’s unique sexual “wiring” to intensify mutual enjoyment.

Bigirimana does not shy away from addressing the darker side of intimacy, highlighting how spouses can weaponize sex as a means of retaliation within relationships. He emphasizes the importance of open communication and a shared understanding of the role of sex within marriage, insisting that a marriage devoid of sex is destined for failure.

Against the backdrop of rising divorce rates in Uganda, Bigirimana’s book provides valuable insights into the issues that can contribute to marital breakdowns, particularly those related to sexual dissatisfaction. In chapter six, he explores the influence of memory, physical experiences, tradition and culture in shaping individuals’ perceptions of sex.

These factors, he argues, play a pivotal role in determining how couples communicate about sex and navigate differences in their family values. Additionally, Bigirimana discusses how early sexual experiences and cultural repression can impact an individual’s views on sex, emphasizing the necessity of open communication and meeting each other’s expectations willingly.

The book also addresses the intersection of sex with technology and the potential pitfalls of the digital age. Bigirimana warns against the temptation of using technology for illicit affairs, highlighting the risks it poses to marriages.

In the realm of substance abuse, Bigirimana underscores the detrimental effects of drugs on families, advocating for abstinence to protect marital bonds and overall well-being. The book concludes with a call for couples to actively nurture love, care, financial security, communication, and physical health as essential components of a fulfilling marriage.

In Naked Truth, Bigirimana offers a comprehensive exploration of human intimacy, challenging societal norms and shedding light on the complex web of factors that contribute to a successful, loving and intimate partnership. By daring to address these controversial topics, Bigirimana provides readers with an opportunity for reflection and self-improvement, ultimately encouraging healthier, more fulfilling relationships.

The book can be found in leading bookstores at Shs 50,000

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@observer Wed, 20 Sep 2023 01:56:06

Why most Ugandan businesses don’t survive the first five years

In May 2022 Uganda received an award for being the best investment destination in East Africa.

Shortly after, a survey by Twaweza Uganda, a non-profit, revealed that even when close to half the population had started a business in Uganda, majority failed. A year later, Business Insider Africa drew up a list of the top 10 countries to invest in on the African continent. Kenya, Tanzania, and Rwanda made the cut appearing at numbers 9, 10, and 4 respectively with Uganda a no-show.

This raises concerns about the overall authenticity of the awards and rave Uganda garners as a top-drawer of investment hub since companies continue to divest of the economy year in, year out — Shoprite, Uchumi, Nakumatt, Game Stores, and the like while local businesses get zapped every other day.

This trend shows no signs of slowing down because the economy continues to get battered by internal and external forces which have caused once vibrant local businesses: Biyinzika Poultry International Limited, Dei Biopharma Limited, Sure Deal Beauty Products Limited, and in the past Sembule Group, Bulemezi Farm Enterprises under James Walakira; Greenland bank, and many others to bite the dust.

Which raises the question: why is the failure rate of business high in Uganda? To answer this, a World Bank report — Doing Business in the East African Community 2013 — attributes this nonsuccess to the lack of access to proper information which plays an essential part in the ability of businesses to operate efficiently.

The report states that company and property registries, building departments and power distribution utilities make it difficult to access basic information such as fee schedules for their services.

The document discloses that in only 25 percent of economies do all four agencies make fee schedules easily accessible through their websites, brochures or notice boards, and Tanzania is one of the lower-middle economies that does. No wonder it recently achieved middle-income status!

EFFIGIES AND SHELLS

The World Bank dossier divulges that Tanzania makes more information easily accessible than high-income economies like Greece, Kuwait, UAE. The same cannot be said about Uganda whose institutions are mere effigies and shells. Not to be overlooked are the high interest rates charged by banks in Uganda.

This makes it difficult for firms to borrow for productive investment that is required to achieve high rates of economic growth according to a 2020 study — The Determinants of Interest Rate Spreads in the Uganda Banking System by International Growth Centre.

The report discloses that high lending interest rates have been consistent in Uganda in comparison to Botswana, Rwanda and South Africa because Ugandan banks are highly capitalised which in turn requires a high level of profitability to generate the return on capital that shareholders require.

These high lending interest rates are in part due to high overhead/ operational costs, duplication of infrastructure; that is, every firm having to build, or have its own infrastructure other than share some common infrastructure to reduce costs. And increased government borrowing which puts it directly in competition with the public for credit; this is also called crowding-out.

It is for this reason that Dei Biopharma Limited, a promising half a billion-dollar pharmaceutical company, is presently having its assets auctioned off by, among others, two local banks, before its first production; to recover a loan.

Businesses are collapsing in Uganda because of high tax rates: excise tax, import duties, value added tax [VAT]; and nontariff barriers like delays in the issuance of certificates. VAT is levied at 18 percent in Uganda compared to Kenya’s 16 percent. Excise duty which is charged on goods manufactured internally at the point of manufacture is quite high for businesses operating in an economy the size of Uganda.

As an example, one percent of the value of mobile money transactions is charged as excise duty on top of paying transaction fees, Shs 1,350 for each litre of petrol, and Shs 1,030 for every litre of diesel. Motorcycles at first registration are charged Shs 200, 000 [$54].

This increases the cost of doing business because for example when fuel prices rise, the price of everything shoots up. It goes without saying that the surcharge on motorcycles registered for boda boda business which employs a big part of the informal sector shows the government’s fettering of local businesses.

In an interview with Isa Sekitto, Kampala City Traders’ Association [KACITA] spokesperson, he disclosed that government isn’t responsive to the cries of local businesses, and instead favours foreign ones. He narrated a recent ordeal in which a local businessman almost lost 50 acres of land in Namanve that he had gazetted for a factory complete with equipment to a group of ‘investors’ from Dubai!

FAVOURING FOREIGNERS

Sekitto spoke of the favouritism the government shows to foreign investors: “For example, you start a factory and barely one, two years and they [government] start asking for taxes; many have closed under this.”

“Meanwhile, foreign-owned factories run for five to seven years, and they’re not charged any taxes at all. These Investors are mostly of Indian, Chinese and Pakistani origin”.

It’s because of this that Sekitto believes many local businesses are collapsing despite Ugandans being one of the most enterprising people in the world. Likewise, the unstable macroeconomic environment rampant with inflation, and mercurial international finance dynamics, and exchange rates, make for a deleterious business environment. In the past three years, inflation has hit double digit levels before, during and after the pandemic.

As regards the Uganda shilling, it has dropped against the dollar by six percent since January 2022. This drop in value means that the cost of international trade for Ugandan traders has risen.

A cocktail of inflation and the depreciation of the shilling spells disaster for businesses that many cannot survive especially as inflation increases the cost of doing business, forcing firms to lay off workers to stay afloat. With less people working, the purchasing power in the market is reduced, forcing many businesses to shut down.

Further, many businesses are run by incompetent management teams. If they are lucky, only the boss, and a few sittings at the top have the necessary experience, skills, training and business acumen to run a business successfully. This negatively affects the hiring process. Also, not many businesses possess the financial muscle and knowledge to outsource human resource to fill the void left by ill-equipped personnel.

In the business circles it is common knowledge that to win/get lucrative deals or contracts, the palms of awarding officials must be greased. Non-compliance ends in not winning contracts. Many companies cannot afford the percentage of kickbacks asked for, and at the same time retain capital to operate.

So, they are outbidden by bigger companies that have the capacity hence many medium, and small enterprises get driven out of business because they can’t afford to factor bribes into their expenditure.

A pragmatic look into Uganda’s economy uncovers that its market size/economy is small and weak. Uganda’s economy is categorised as such because it has a weak currency. Most strong economies are backed by strong currencies like Tunisia, Botswana, Kenya and many others on the continent.

Uganda’s economy isn’t productive, and competitive, which explains the rising demand in imports in comparison to exports. In the twelve months leading to November 2022, Uganda had an overall balance of payments deficit of $676.5 million [shs 2.5 trillion] as per the parliamentary budget committee report for financial year 2023/24.

According to the IMF, Uganda’s economy is valued at $46 billion for 2022 with a per capita income of $1,060. This metric measures the productivity per person in an economy, and Uganda’s output per person falls short of that of Kenya $2,269, and Tanzania $1,245.

When an economy is bigger, it is more productive and instinctively in its workings, avails opportunities that would otherwise not exist if it were smaller.

In like manner, strong economies are synonymous with well-paying openings in financial markets and services, information technology, medicine and research and development. Uganda’s economy doesn’t avail these openings in the least.

What is confusing is the purported year-to-year economic growth reported by government and nongovernmental institutions. All while local businesses fall, and foreign ones close shop despite the extra support accorded them by government. This sends a loud message that Uganda isn’t breeding ground for any business to thrive.

kimaona@yahoo.com

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@observer Wed, 20 Sep 2023 01:39:16

Ugandan microscopic diagnosis project wins Google’s Shs 5.58bn grant

Google.com, the philanthropic arm of Google, has given a research grant and additional support of $1.5 million (about Shs 5.58 billion) to a Makerere University research project seeking to improve the efficiency and scale of microscopic diagnostics in Uganda.

The project, known as Ocular, is managed under the Makerere University Artificial Intelligence Lab. It is a partnership of Makerere and Mulago national referral hospital. The project uses artificial intelligence for automated mobile microscopic diagnosis of malaria, cervical cancer and tuberculosis, and will add more diseases in future, such as sickle cells, intestinal parasites and anaemia.

Dr Rose Nakasi, the principal investigator, explained that the project attaches a smartphone onto the ocular (eyepiece of a microscope) to take many photos of the test sample.

The photos are then sent to an artificial intelligence laboratory to do analysis. She touched on some of the advantages of the project, such as ease of sharing the photos and analysis; removing the physical strain that laboratory technicians often suffer; increasing the number of patients that can be diagnosed in a specific time; and advancing the teaching of microscopy and diagnostics.

The standard operating procedures in Ugandan medical facilities is a maximum of 20 microscopic diagnoses per day per technician. Nakasi, who downloaded and filled the 80-page application form, said the project increases the number of samples a technician can look at by 25 percent, and reduces the screening time by 80 percent.

Tonny Oyana, the principal of College of Computing and Information Sciences (CoCIS), said the research will have social impact by its raising of efficiency in health outcomes using low technology.

He said the funding from Google will help a lot to scale up the project in different pilot hospitals. He said Makerere was one out of 15 organisations that won the tight competition to benefit from the $25 million philanthropy challenge that assesses a project’s potential to contribute to attainment of the UN sustainable development goals.

Engineer Bainomugisha, head of department of Computer Science, said the college started specializing in artificial intelligence (especially for health and agriculture), data science and cyber security in 2009. He added that Google has a strategic partnership agreement with Makerere University, and that it has already invested $5 million in CoCIS alone since 2018.

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