News analysis Health Business

Elioda Tumwesigye's Humans to blame for New deals at Afreximbank ditches

chances in Sheema rise in dangerous viruses Barclays, DFCU Nairobi for Kampala

Issue No. 530 July 20 - 26, 2018 Ushs 5,000,Kshs 200, RwF 1,500, SDP 8

Kaweesi murder
investigations
Evidence Police, ISO
have on Kayihura

Witness was Recording of Kayihura is

repairing a car talking to the assassin
where Kaweesi
was murdered

Kayihura
aides Details of
linked a meeting
to crime where the
scene murder was
planned

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INBOX

Issue No. 530 July 20 - 26, 2018

News analysis Business Health Arts Motoring

Cover story
Kaweesi murder investigations
What evidence Police, ISO have on Kayihura

4 The Week
29 Comments
Social media tax
protestors arrested BoU had to take over Crane
Bank: The bank was massively
insolvent, with core capital
9 The Last Word
of negative Shs240 bn due to
Our biggest political question: mismanagement and fraud
Why NRM won local council
elections amidst the `hated’ tax on 33 Health
mobile money and social media
Rise in dangerous viruses:
Why humans are to blame
16 Analysis for the infections
Elioda Tumwesigye and the Sheema election:
Greedy politician or strategic shifter?

35 Arts & Culture

23 Business KLA ART is back! :Artists to
create artworks of identity
New deals at Barclays, DFCU:
Financial sector experts predict changes in
jobs and corporate governance culture

STRATEGY & EDITORIAL DIRECTOR: Andrew M. Mwenda
MANAGING EDITOR: Joseph Were
INVESTIGATIONS EDITOR: Haggai Matsiko
BUSINESS EDITOR: Isaac Khisa
PHOTOGRAPHER: Jimmy Siya
WRITERS:Ronald Musoke, Flavia Nassaka, Ian Katusiime,
Agnes Nantaba, Julius Businge.
DESIGN/LAYOUT: Sarah Ngororano
CARTOONIST: Harriet Jamwa

PUBLISHER: Independent Publications Limited, Plot 82/84, Kanjokya Street, P. O. Box 3304, Kampala, Uganda
Tel: +256-312-637-391/ 2/ 3/ 4 | Fax: +256-312-637-396 E-mail: editor@independent.co.ug | advertising@independent.co.ug
circulation@independent.co.ug | Website: www.independent.co.ug

2 July 20 - 26, 2018

 Offline

The Republic of
Korean Ambassador
to Uganda Kim You-
churl,(R) handing
over 5000 metric
tons of rice to
the WFP Country
Director El-Khidir “Security comes from the population.
Daloum, on July 13
in Tororo to enable
We need not waste taxpayers’ money.
WFP to meet the The government should sink this
minimum food needs money in investigating crime and
of 420,000 refugees. motivating the security officers rather
than simply dishing it out on MPs”
Ntungamo Municipality MP Gerald Karuhanga

Gilbert Assi, Managing

Director, Vivo Energy
Uganda speaking at the
1st national road safety
summit on July 11. He
said that the summit
was aimed at bringing
policy makers and other “To make public projects work, it
major stakeholders
up to speed with the is important to look at land. I am
road safety challenges not saying government should not
facing the country adequately compensate, it should.
in order to increase
their commitment
Speculation should be dealt with,
towards road decisively.” Kabagambe Kaliisa, Former
safety.   INDEPENDENT/ Permanent Secretary, ministry of Energy
JIMMY SIYA

Police arrest a youth

during the LC elections
in Bukasa at St James
Church on July 10. The
Local council elections
were characterized with
violence in must parts of
Bweyogere.   INDEPENDENT/ “At a time when the scholar
JIMMY SIYA
dedicated to excellence has
spread wings and taken flight, the
public intellectual has turned into
a linked government consultant
or an agitator in the ranks of the
opposition.”Prof Mahmood Mamdani
on declining intellectual standards

People arrested in Money gov't has Money released

2321 connection with

crime in Kampala Shs22bn allocated to refurbish
Busolwe hospital in Shs4.3 trn to government
for first quarter
in last six weeks Butaleja district of 2018/2019 FY

July 20 - 26, 2018 3

week
Police attempting to arrest Robert Kyagulanyi, the MP for Kyadondo East, during the protest.   INDEPENDENT/JIMMY SIYA
Social media tax protestors arrested
Protestors including journal-
ists, musicians and local council
leaders took to the streets on
July11 to challenge the new
Shs200 daily tax on social media
users and the 1% tax on mobile
money transactions.
The demonstrators don
in red were led through the
streets of down town Kampala
by Kyadondo East legislator
Robert Kyagulanyi Bobi as
10% LC charge on land transactions illegal- gov't
As new Local Council (LC)
Chairpersons take over office
following the July 10 elections,
they have been warned against
charging fees on land sales.
Though illegal, local councils
have been charging 10% on
land transactions as a form
of commission for signing on
agreements.
State Minister for Local Gov-
ernment Jenipher Namuyangu
has now clarified that the fee
is not provided for under the
4 July 20 - 26, 2018
they shouted chants including
‘people power’ and ‘this tax
must go’.
However, not too long into
the demonstration, they were
intercepted by police and some
including Bobi wine’s brother
Fred Nyanzi Sentamu were
arrested and charged with
offenses of unlawful assembly
and inciting violence.
Bobi wine escaped arrest
Jenipher Namuyangu
Local Governments and Local
Council Regulations Act and
after a supporter gave him out-
fits to disguise himself. He later
that afternoon appeared in par-
liament where Prime Minister
Ruhakana Rugunda announced
that government was consider-
ing revising the move. “Gov-
ernment is now reviewing the
taxes taking into consideration
the concerns of the public. An
amended bill will be debated on
July 19”, he said.
therefore was just imposed to
fleece people.
In a phone interview with the
Independent last week, Francis
Babu a ruling National Resis-
tance Movement party histori-
cal said the delay to hold new
LC elections made some leaders
take advantage of the situation
to come up with such illegal
perks as the 10%. The country
had taken up to seventeen years
without having these grass root
elections.
Airtime scratch cards
to be phased out
Uganda Communications
Commission has set up to
July 31 to completely get
rid of airtime scratch cards.
Speaking to the media on July
16, Ibrahim Bossa, Director
Consumer Affairs at UCC
said the move is not only
part of its digital migration
drive but is also influenced by
issues of national security.
“There are people who have
been masquerading as airtime
dealers yet they are criminals.
We realized a need to register
and tighten the process of
airtime selling so that we can
know who is selling airtime
and to whom in order to have
some form of accountability
and traceability”.
With digital air time,
customers will now have to
use mobile money, e-top ups,
payway, e-value vouchers and
other technologies something
that is seen by some as a
move by government to rise
more taxes as this comes at
the time when government
has imposed taxes on all
mobile money transactions.
UCC figures show that
there are 23 million active
mobile money accounts – 94%
of mobile phone holders and
over 160,000 digital airtime
dealers around the country.
For Bossa, with such figures
migrating from scratch cards
will be pretty easy as a large
number is already using these
e-services.
*terms and conditions apply
 Week

Verdict on age limit petitions set for July 26 Gaagaa bus

Five judges led by deputy
chief justice Alphonse Owiny
Dollo will deliver their ruling
on the five age limit petitions
that were consolidated into
one on July 26 in Mbale. The
petitioners run to court last year
challenging the amendment of
article 101b of the constitution
Protesters against the age limit bill last year.
removing presidential age lim-
its and the move by members of
parliament add themselves two
years in office in addition to
their five years tenure.
Hearing of the case was held
earlier in the year in the Eastern
Uganda district of Mbale where
several high profile officials
appeared for questioning. Dep-
uty Attorney General Rukutana
represented government while
the petitioners were repre-
sented by among others Erias
Lukwago, Wandera Ogalo and
Male Mabirizi who represented
himself since he was among the
five petitioners.
suspended
The Transport Licensing
Board (TLB) suspended the
operations of Gaagaa Bus Ser-
vices following another accident
that claimed one life and left oth-
ers injured after the horrendous
May 25 crash that killed 22 peo-
ple. The accident that happened
on July 13 involved Gaagaa bus
registration number UAT559Y in
Kiryandongo district as it trav-
elled from Arua to Kampala. The
accident prompted an emergen-
cy meeting by TLB the next day
and subsequently suspended
the bus company. TLB issued a
letter to Gaagaa saying accidents
had continued despite sev-
eral interventions it had made
against the company. Gaagaa
bus has been involved in several
accidents over the years, with
the the deadliest in May which
took place not far away from the
spot of the latest accident. TLB
and the police will investigate
the management and operations
of Gaagaa bus services, carry out
a comprehensive audit of the
driver recruitment process, wel-
fare and the disciplinary mecha-
nisms of the company.

Museveni’s directive on beefing up MPs’ security criticized

In a letter to Finance Minister Matia
Kasaija, President Museveni ordered him
to quickly provide money to procure
4 wheel drive pick-up cars with open
carriage beds to beef up security of
members of parliament who he said had
become a target by criminals. Museveni
who asked the minister to act fast said
since MPs have become a target for
criminals, they should in addition to their
police guards be provided with army
sharp shooters.
This however was criticized by some
MPs saying it’s wastage of resources and
not inclusive. For instance Opposition MP
Muwanga Kivumbi said the move was an
indicator that the government is failing
on security. Others proposed that instead
of providing the cars to all the more than
400 legislators, those who need their
security beefed up should be the only ones
registered and considered.
As it is now, if all MPs are to be
considered, this would cost the tax payer
billions of shilling. For Museveni however,
the armored vehicle solution is a short
term one as they are upgrading the
technological base and once installations
are complete, the vehicles will be handed
to the army.

July 20 - 26, 2018 5

Week
CCEDU petitions
parliament over
suspension
Citizens Coalition for Elec-
toral Democracy in Uganda
(CCEDU), an election observ-
ers’ network, will petition
parliament over its suspension
by the Electoral Commission
(EC) from observing elections
in the country. EC suspended
CCEDU over what it called lack
of objectivity in its activities and
failure to adhere to standards
laid down in election-related
activities. CCEDU, a coalition of
991 civil society organisations
with a total of 27, 801 individual
members will hand a petition to
the Parliamentary committee on
Legal and parliamentary affairs
through Jinja Municipality MP
Paul Mwiru. CCEDU also plans
to sue EC if the suspension per-
sists. Livingstone Sewanyana,
CCEDU Chairperson, rapped
EC for leaking news of the sus-
pension to social media before
engaging the coalition.
Livingstone Sewanyana
6 July 20 - 26, 2018
Trump in first UK visit
Trump shaking hands with Queen Elizabeth
On July 12, US president
Donald Trump arrived in Great
Britain for his first official visit
that lasted four days. On day
two of the visit he and first lady
Melania Trump met Queen
Obama launches youth foundation in Kenya
Former US President
Barrack Obama started his
two day visit to Kenya by
paying a courtesy call on
President Uhuru Kenyatta
at State house. Obama who
is in the country for charity
– to launch the Sauti Kuu
Foundation project run by
his sister Auma Obama, was
thanked by Kenyatta for
his efforts to empower the
youth through his Obama
Foundation.
“Learn a skill that will earn
you money. If you earn the
money that you need then
you will be able to further
yourself through education
using that money”, Auma
Obama said at the launch.
Elizabeth at a pompous ceremo-
ny held at Windsor Castle.
“She is an incredible woman,
she is so sharp, she is so beauti-
ful, when I say beautiful - inside
and out. I can tell you I liked
Barack Obama with children at the centre he launched.
Sauti Kuu foundation
focuses on empowering
children and adolescents
in rural areas and slums to
become self-reliant.
Obama who travelled to
her. I liked her a lot”, Trump
spoke to the media after sharing
a cup of tea with the royal.
During the visit he also held
a joint press conference with
Prime Minister Theresa May
that focused on deepening part-
nerships between the two coun-
tries and the future of Brexit.
However, a day before,
media had published an inter-
view where Trump was criticiz-
ing the way May handled Brexit
only for him to change and sup-
port the Prime Minister’s strat-
egy during the conference.
From UK, Trump flew to
Helsinki on July 15 ahead of his
one-to-one meeting with Rus-
sian president Vladimir Putin.
South Africa to deliver the
annual Nelson Mandela
Lecture after the visit had last
visited the country in 2015
while still a sitting president.
Humour Did you know?

Apple has released

two powerful
Macbook Pros
Apple has released a beefed up
President Yoweri Museveni has directed for the beefing up of security of MPs with sharp Macbook Pro that’s as powerful as it
shooters and escort double cabin pickup vehicles after they expressed fears for their lives is pricey. The Macbooks come with
8th-generation Intel processors, making
the 15-inch model up to 70 percent
faster and the 13-inch model up to two
times faster.
The new MacBook Pro includes
support for up to 32GB of memory, an
improved keyboard for quieter typing
and will also be able to compile code
faster. And they start at a mammoth
£1,749 for the 13-inch model and £2,349
for a 15 inch device. Both computers
are fitted with the controversial Touch
Bar interface running across the top
of the keyboard that’s like a little
touchscreen which changes its function
depending on what app you’re using.
Apple just released two incredibly
powerful but mega-expensive new
products
The company said that the Apple T2
chip, first introduced in the iMac Pro,
The Kampala Minister Beti Kamya has invited the Lord Mayor Erias will provide better system security and
Lukwago for a meeting to settle their differences also bring voice assistant Siri to the
Mac for the first time.
In April, the 13-inch MacBook Pros
without touch bars had come under
scrutiny, with some users reporting
battery-related issues. Apple had said it
was not a safety issue and had offered
worldwide free replacement for such
batteries.
‘The latest generation MacBook
Pro is the fastest and most powerful
notebook we’ve ever made,’ said Philip
Schiller, Apple’s senior vice president
of worldwide marketing.
‘Now with 8th-generation 6-core
processors, up to 32GB of system
memory, up to 4TB of super-fast SSD
storage, new True Tone technology in
its Retina display and Touch Bar, the
Apple T2 chip for enhanced security
and a third-generation quieter keyboard
packed into its thin and light aluminium
The United Nations Assembly has rejected the proposal to shift design with all-day battery life, it’s the
the Regional Service Centre from Entebbe to Nairobi. best notebook for pro users.’

July 20 - 26, 2018 7

WORLD CUP

Finally, France captain Huge Lloris lifts the precious trophy.  Photograph: Shaun Botterill/Getty Images

Theres only one way to celebrate in the rain   Photograph: Kai Pfaffenbach/Reuters

Kylian Mbappé was named the young player of the tournament. Wonder how many times he’s going
to get his hands on this trophy in the years ahead?   Photograph: Matthias Hangst/Getty Images

8 July 20 - 26, 2018


Our biggest political question
By Andrew M. Mwenda
Why NRM won local council elections amidst the
`hated’ tax on mobile money and social media
L
ast week, Uganda held elections for
local councils. The ruling National
Resistance Movement (NRM) of
President Yoweri Museveni fielded
a candidate in almost every contested posi-
tion. I obtained provisional results from the
Electoral Commission. They cover 53,340
out of 60,797 contested positions (i.e. 88%) in
122 districts. NRM won 69%, independents
(most of them allied to NRM) 22% and the
combined opposition a miserable 9%.
There is a broad consensus among
Ugandan elites that Museveni has out-
grown his usefulness and has now increas-
ingly become a liability. This consensus (in
the absence of a scientific opinion poll, I am
going by social media and personal inter-
actions) is not just among opposition and
independents. It is also widespread among
supporters of the NRM, even its MPs
including cabinet ministers. It is increas-
ingly rare to find an educated Ugandan
who believes Museveni represents the
future of our country.
The elections were held a week after gov-
ernment introduced a tax on mobile money
and on social media, which has generated
a lot of hostility among the elite. They were
also the first nation-wide elections after
parliament amended the constitution to
remove age limits on the president so that
Museveni can run again. This amendment
generated a lot of hostility from the elite
public as well.
How does Museveni (and his NRM)
continue to win elections in spite of these
actions? This is the question Ugandan elites
refuse to ask because it would expose their
delusions i.e. show that they are detached
from reality.
Social media is an echo chamber, where
elites listen to themselves and get an illusion
that the whole country agrees with them. In
doing things that piss off elites, one would
think Museveni had given his enemies a
rope with which to politically hang him.
However, his opponents have failed to take
advantage of them. This should lead us to
question whether these decisions are blun-
ders.
We cannot blame Museveni for seeking
power till he dies. Any self-interested indi-
vidual would do exactly that. We can blame
Ugandan society generally: why doesn’t the
public rise in revolt against Museveni for
corruption and mismanagement as claimed
The Last Word
by his opponents? Are Ugandans this
cowardly? Or should we blame opposition
leaders who have promised salvation but
delivered defeat after defeat?
I have friends who argue that society
cannot be blamed for these failures. It is
leaders to blame. But who holds these
leaders to account? The ability of leaders to
deliver depends on a vigilant population.
If the leadership in government has failed
to manage the country well, the leadership
of opposition has also failed to remove an
incompetent government from power. In
both cases, Museveni’s failures have not
caused his fall and neither have the failures
of opposition leaders to remove him caused
any change in opposition leadership. This
suggests that we are a society confortable
with mediocrity.
Or may be not. I believe Museveni has
been a successful leader and Ugandans
know it – deep inside them, perhaps intui-
tively – they feel it and believe it. However,
for fanciful reasons, it is not cool to admit
this fact and the more reason to pontificate
and pretend to oppose Museveni. It makes
some elites hedge their bets against being
accused of having been compromised.
Why? Because when Ugandans have previ-
ously felt their country is in peril, they have
organised in defiance of power and pursuit
of their ideals.
Take 1981. When Museveni went to the
bush, many Ugandans followed him.
Careers were abandoned, educations sac-
rificed, businesses left to waste, lives put
at risk, families left behind and properties
abandoned. Museveni offered no salaries
to his fighters but hunger, sacrifice, and
potential death. The promise of victory
was remote. Yet people joined, others col-
laborated in this national liberation struggle
until final victory was achieved. That Ugan-
dans are not willing to sacrifice for a second
liberation today is evidence that there is
little evil to fight. The country is not as
baldy off as we claim in the media. We are
not very happy. That is true. We are merely
suffering from tolerable inconveniences.
I think Museveni understands Uganda
well and is exceptionally adept at managing
its diverse and conflicting social groups. He
has been unusually skillful and successful
in placating the interests of our nation’s
influential but unruly and noisy ethnic and
religious elites, ascertaining the needs and
Opinion
expectations of the masses they represent,
coopting global powers to support him,
managing regional politics, and insulating
himself a violent power-grab by his oppo-
nents.
Museveni has achieved this by doing
things that, on the face of it, we pretend to
hate but which in reality are the instruments
of consolidating power in an ethnically het-
erogeneous poor country. He has perfected
the art of political corruption by creating
a large volume of elective and appointive
political jobs – a huge parliament, 145 dis-
tricts, 120 presidential advisors, 81 cabinet
ministers, 200 Resident District Commis-
sioners etc. This is the reason few elites want
to break ranks with him. Even for his oppo-
nents, Museveni has created districts where
they too can win elections and eat.
So he has sold the country to multina-
tional capital; the better to reassure global
powers that he is the man they must work
with. He has kept a tight and personal grip
on the military and security apparatus, the
more effective way to avoid violent change
of government. He has created many
popular programs for the masses like Uni-
versal Primary Education, basic healthcare,
Operation Wealth Creation; the sweet way
to show ordinary people that he cares about
them.
He has protected ordinary people from
taxes (by abolishing graduated tax),
defended boda bodas against the rule of
law, protected poor encroachers on public
land and tolerated the corruption of the
powerful. Even for his most virulent critics,
Museveni has allowed them political space
to insult and criticise him, the better to
allow them let off steam and return to sleep
feeling that they have at least told him off.
He has succeeded because while he is pas-
sionate in his pursuit of power, he is flexible
in his morals and principles.
The mistake Museveni’s opponents have
made is to imagine a world that does not
exist. To delude themselves into the belief
that the feelings they share against him in
their social media echo chamber are the
feelings of the majority of the citizens. They
have also lied to themselves that they have a
loyal base of supporters across the country.
But as elections consistently prove, all these
are delusions.
amwenda@independent.co.ug
July 20 - 26, 2018 9
cover story

Kaweesi murder
investigations
Evidence Police, ISO
have on Kayihura

Witness was Recording of Kayihura is

repairing a car talking to the assassin
where Kaweesi
was murdered

Kayihura
aides Details of
linked a meeting
to crime where the
scene murder was
planned

10 July 20 - 26, 2018


The Kaweesi murder scene in Kulambiro in Kampala.
S
By Haggai Matsiko
ince the military arrested the
former Inspector General of
Police, Gen. Kale Kayihura,
they have sought to pin him
for the murder of former
Assistant Inspector General
of Police, Andrew Felix Kaweesi.
The Independent has learnt that the
team actively investigating Kayihura
on alleged connection to the Kaweesi
murder comprises 12 officers; seven
from police, three from the Chieftaincy
of Military Intelligence (CMI), and two
from the Internal Security Organisation
(ISO).
Those from police are Grace Akullo,
the Director Criminal Investigations
and Intelligence Department (CIID),
who also chairs the team, her deputy;
Senior Commissioner of Police (SCP) Elly
Womanya, and five police detectives.
From ISO, it is Lt. Churchill Mutatina
and another, and from CMI, it is the
Joint Anti-Terrorism Task Force (JATT)
Director, Charles Asiimwe, and two
others. The team was expected to
conclude its investigations and submit
a report this week. The report could
form the basis for further action against
Kayihura; including prosecution for
allegedly murdering Kaweesi.
Kaweesi was murdered on March
17, 2017 together with his bodyguard
Kenneth Erau and driver Godfrey
Mambewa when assailants showered
bullets at the car they were driving, in
Kulambiro; a Kampala city suburb.
Initially, the investigations had
focused on other suspects, including
terrorists belonging to the Allied
Democratic Forces (ADF).
That was the time, police under
Kayihura, was taking the lead role in
investigations.
However, the ground started to
shift under Kayihura when he became
discredited and sidelined in the
investigations because of the widespread
criminality that had cropped up in
police over the 12 years he headed it,
his personal closeness to some of the
suspects behind the criminality, and his
appointing of some of them to powerful
positions on the force in total disregard
of police structures and hierarchy.
With Kayihura shunted aside but
still in office, the Chieftaincy of Military
Intelligence (CMI) and the Internal
Security Organisation (ISO) took centre
stage. And their first order of business, it
appears, was to nip Kayihura.
But first they encircled him by
arresting his lieutenants, including Nixon
Agasirwe, the former Commandant
Special Operations Unit and several
others last year.
The course of the Kaweesi murder
investigation completely changed when
Kayihura was fired on March 4. The
investigation now appears focused on
him and his close associates.
cover story
Uncooperative witnesses
Kayihura’s lieutenant, Agasirwe,
worked closely with Abbey Kitagenda, the
former Police Commandant Flying Squad
in charge of Kampala North.
Reports have been circulating that
following his arrest by the CMI in May,
Kitagenda had confessed that he is the
one who stopped Kaweesi’s car before
assassins showered it with bullets.
Although Kaweesi’s car was sprayed
with bullets, it was found properly
parked with the engine running, which
pointed investigators to the possibility
that someone known to Kaweesi had
stopped the car voluntarily before he was
murdered.
It is argued that when a car is shot
at while being driven and the driver is
distracted or killed, it usually swerves off
the road.
That is what happened to the VW Beetle,
then-Arua Municipality legislator, Ibrahim
Abiriga, was driving in together with his
brother when it was sprayed with bullets
by assailants; killing them instantly.
Kayihura’s arrest came days after the
murder of Abiriga.
Abiriga joined high profile people killed
by assassins including State prosecutor
Joan Kagezi, UPDF’s Maj. Mohammad
Kigundu and Assistant Inspector of
General of Police (AIGP) Felix Kaweesi.
Abiriga’s slaying appears to have jolted
Museveni into action. The President
appears frustrated because for many years
he had boasted about restoring security.
July 20 - 26, 2018 11
cover story
President Museveni (Extreme L) at the Abiriga murder crime scene in Kawanda in Kampala.
He now appears helpless, unable to
stop the slide into insecurity. His recent
proposal to provide a pick-up escort
car, complete with a small unit of armed
guards for each of the 450 members of
parliament has been criticised as knee-jerk,
impractical, costly, ineffective, and not well
thought out.
However, there is a sense that the VIP
murders show a pattern of aiming “to
instill fear, cause anxiety in the public and
disaffection against government”.
They point at how all the VIPs have
been killed in the same way; by assailants
riding on motorbikes who waylaid them,
showered their cars with bullets, and sped
off.
Suspicions that someone known to
Kaweesi killed him fueled more suspicion
that this was an inside job. Kitagenda’s
alleged confession, therefore, appeared
intended to link the former police chief
or some of his cronies to the murder of
Kaweesi.
However, The Independent understands
that Kitagenda has denied this and is said
to be “uncooperative”.
Searching for evidence
Then, insiders say, when ISO agents
under Col. Kaka Bagyenda recently raided
MTN Uganda’s data centre in Mutundwe
12 July 20 - 26, 2018
– allegedly over tax evasion allegations,
the real target had to do with data on leads
linking Kayihura to the Kaweesi murder.
According to MTN officials, they were
not aware of any investigation by any
government agency over tax evasion.
In a bid to further pin Kayihura, ISO has
arraigned before cameras witnesses who
claim that Kayihura released criminals
who were behind the multiple attacks
on civilians in the Greater Masaka area
with machetes and pangas – the so-called
‘kijambiya’ gang.
In this case, Kayihura was reportedly
in cahoots with Richard Ndaboine, the
former head of cyber intelligence, Col.
Ndahura Atwooki, the former head crime
intelligence, and Herbert Muhangi, the
former head of Flying Squad, among
others. The CMI picked up Ndaboine last
month.
Critics say all this is intended to
implicate Kayihura and the officers that
worked closely with him who are now
under military detention.
Finally, The Independent has been told
by sources close to the case, that the
investigators from CMI and ISO are relying
on about four elements in their bid to pin
Kayihura; a recording in which Kayihura is
said to be talking to the assassin, witnesses
who claim to have driven the assassin
to the scene of crime, the suspicion that
Kayihura was threatened by Kaweesi’s
rising star, and the actions of Kayihura’s
aide, Jonathan Baroza, on the scene of
crime.
Some of these aspects of the
investigation were openly put to Kayihura
on June 13 after Deputy Chief of Defence
Forces Lt. Gen. Wilson Mbadi and the
head of CMI; Brig. Abel Kandiho, arrested
him from his farmhouse in Kashagama,
Lyantonde District, flew him to Entebbe in
a helicopter and immediately drove him
to Makyindye Military Barracks, where he
remains detained.
The same day, Kandiho and Charles
Asiimwe, the head of CMI’s Joint Anti-
Terrorism TaskForce (JATT), Grace Akullo,
the Director CIID and her Deputy Elly
Womanya and other detectives from
police, and the Director General Internal
Security Organisation (ISO), Rtd. Col. Kaka
Bagyenda interrogated him.
They reportedly told him they were
investigating him over the murder of
Kaweesi. As part of their preliminary
evidence, they said they had a recording in
which Kayihura could be heard talking to
the killer of Kaweesi.
While the investigators did not tell
Kayihura who he was talking to in that
recording, The Independent has learnt from

insider sources that the former police chief
was allegedly talking to Herbert Muhangi,
the former Commandant of the defunct
Flying Squad in the recording.
But The Independent has learnt that while
part of the team investigating Kayihura
appears to believe that the recording
is authentic, others have out rightly
dismissed it and are counseling extreme
caution because of questions about its
credibility.
And that is not the only contentious
element of the evidence being compiled
against Kayihura. The other involves
witnesses.
Sources close to the investigations have
told The Independent that the investigating
team has two key principle witnesses.
One of them (name withheld for security
reasons) says he is a mechanic in Ndeeba
and happened to be repairing a car in the
neigbourhood from which Kaweesi was
murdered.
The other witness (name withheld
for security reasons), claims he was at a
meeting where the murder of Kaweesi
was planned. The suspect claims that the
meeting was attended by; former Kampala
Metropolitan Police Commander, Frank
Mwesigwa, Col. Ndahura Atwooki, the
former head crime intelligence, Muhangi
and Christine Mbabazi, who is said to have
been Kaweesi’s girlfriend.
This same suspect also claims
Mwesigwa was the strategist of the murder
and Muhangi executed it. If these claims
were accurate, it would explain why
Muhangi was calling Kayihura. Going
by this theory, it would explain that it
is Kayihura who called the hit against
Kaweesi.
However, the revelations by the
witnesses at the centre of the investigations
appear to have suffered major blows.
In the first case, when he was taken to
the meeting venue at Kati Kati Restaurant
along Lugogo Bypass in Kampala and
asked where the meeting took place, he
pointed to the counter. To some of the
investigators on the team, it appeared odd
that the master minds of a murder would
pick the counter to plan such a mission.
Apart from this, it appears the suspect
had never met Mbabazi; the alleged
Kaweesi girlfriend who was also said to
have attended the alleged meeting at Kati
Kati. When officials organised a screening
parade for the suspect to identify her,
Mbabazi said she had never met him.
Finally, the investigators brought in call
data to see if they could put these officials
at the meeting area and the scene of
crime. Call data could not place any of the
suspects at or near the scene of the alleged
planning of the crime and execution of the
murder.
The data, according to sources,
showed that Muhangi was somewhere in
Kasokoso; about 10 kms away, where his
home is also located.
Others were also far away from
Kulambiro, where Kaweesi was murdered.
It is only Mwesigwa who was nearby—he
was in Ntinda around the time Kaweesi
was murdered. When he was informed
about the murder, he drove there and had
arrived within ten minutes, insiders say.
Noteworthy too is that while the security
agencies have arrested all the others
mentioned in these allegations, Mwesigwa
has not been arrested.
Apart from this, call data has also placed
the mechanic who claims to have been in
Kulambiro at the time of the murder, far
away from where he claims to have been.
Insiders also say that when the mechanic
was taken to the crime of scene, he could
not identify it.
Insiders say top security officials are
divided about these aspects. While some
have punched holes in it, others appear
Gen. Kayihura Col.Kaka
keen to pursue these leads.
Slippery Kayihura
Significantly, however, The Independent
understands that Kayihura’s real crimes
are of a political nature and pinning the
Kaweesi murder on him is an attempt to
get a holding charge on him.
Kayihura’s crime is that he was working
with forces of another country in a bid
to oust President Yoweri Museveni from
power. Intelligence reports have fingered
Kayihura allegedly using crime preventers
to train rebels in Mubende with the
backing of Rwanda.
According to this narrative, Kayihura’s
lieutenants like Nixon Agasirwe, were the
foot soldiers of the mission.
When Agasirwe and others were
arrested last year, they were charged in
the General Court Martial with unlawful
possession of firearms and grenades
ordinarily a monopoly of the Defence
Forces. They were also accused of handing
to the Rwanda government two prominent
persons; one Lt. Joel Mutabazi; a former
cover story
presidential guard for Rwanda’s President
Paul Kagame who had sought refuge
in Uganda, and Jackson Kalemera. The
two were reportedly handed to Rwanda
without their consent. But Rwandan
authorities say these were handed to them
through official channels.
The Independent has seen a document
showing a list of persons, cars, cash, cows
and phones that Ugandan and Rwandan
police authorities officially handed to each
other. Mutabazi is listed amongst those
handed to Rwanda.
Kayihura’s case is not being helped by
the disappearance of some of his top aides,
including one Jonathan Baroza.
Baroza gained prominence in the
Kaweesi murder investigations when he
was accused of scooping soil samples from
the scene of crime yet he was not part of
the forensics team.
It is alleged that Baroza even had a
public altercation with AIGP Fred Yiga
Brig.Kandiho
over the same day at the Kaweesi muder
scene.
Kayihura’s tormentors are focusing on
Baroza’s flight as an indicator of guilt.
It is not mentioned that Baroza could
vanish out of fear. At the time of his
disappearance, Baroza, who had been
dispatched as an attaché in Algeria, had
been expected to return to Uganda and
boarded the plane from Algiers. He,
however, disappeared at Istanbul Airport
in Turkey, where he was supposed to
connect to Entebbe.
Insiders suspect that having learnt
that all Kayihura’s allies were being
rounded up by the army, Baroza decided
to go into hiding the same way another
Kayihura ally, Amos Ngabirano, the
former police director of Information
and Communication Technology (ICT)
disappeared when trouble started
unfolding. As the action unfolds, it
appears arresting and detaining Kayihura
was the easy part for his tormentors;
concluding investigations about his alleged
transgressions is proving a lot harder.
July 20 - 26, 2018 13
news analysis
Elioda Tumwesigye
&
the Sheema election
Greedy politician or strategic shifter?
By Ian Katusiime
T
he parliamentary race
for the new constituency
of Sheema Municipality
has become the latest
political battle ground partly
because other contestants
and some residents say the
Minister of State for Science and
Technology, Elioda Tumwesigye,
standing on the NRM ticket, is
a ‘parachute candidate’. The
election is slated for July 27.
Usually, a parachute candidate
is one who contests in an area
where he or she does not live. In
this case, however, some people
still regard Tumwesigye as one
although his house and other
properties are said to be in the
geographical area that is Sheema
Municipality.
His critics say Tumwesigye,
who is the sitting MP of
neigbouring Sheema North
constituency has no business in
Sheema Municipality. Some add
that as a Minister, he is already
“eating” and by desiring more,
he is simply greedy.
When Sheema district was
carved out of the greater
Bushenyi district eight years
ago, it was after a long battle
that went all the way to the
Constitutional Court. Those
demanding for the splitting of
Bushenyi carried the day on
the promise that creation of
new districts will bring services
closer to the people.
The promise did not
materialise but the
politics of that very
promise is playing
out again in the
election for the
newly created
14 July 20 - 26, 2018
Sheema municipality. Sheema
is one of the four districts
that were created in 2010, the
others are Mitooma, Buhweju
and Bunyaruguru. When you
consider the original Bushenyi
district, they become five.
The NRM and FDC are
preparing for similar elections in
the newly created constituencies
of Bugiri, Koboko, Nebbi, and
Ibanda.
Tumwesigye has been an MP
for Sheema North for 17 years,
since 2001. Some residents in
Sheema suggest Tumwesigye’s
vying for the municipality seat
now is because of the monies
expected to pour in the newly
created municipalities. But
Tumwesigye says he wants to
switch to the newly created
Sheema Municipality seat
because the majority of his
constituents from Sheema North
now fall within the municipality
and, therefore, his switch bid is
natural and politically the right
move.
Canon David Kabigumira, the
LC V Chairperson of Sheema
district knows a lot about the
intricacies of the election and
Tumwesigye’s bid. He stood for
the LC V seat as an NRM-leaning
independent candidate and has
remained instrumental in party
activities in Sheema. He is also
the acting mayor of Sheema
Municipality.
He says the talk about
the minister switching
constituencies because of the
resources expected to go to the
municipality is not true.
“Most of his (Tumwesigye’s)
establishments are found in the
new Sheema municipality,” he
told The Independent.
 news analysis
Divided NRM
Tumwesigye contested to be the
flag bearer against six others in the
primaries and beat them. But his bid
has divided supporters of his party,
the NRM, in the area and two of those
he defeated in the primaries; Jonas
Tumwine and Raymond Akankwasa,
are contesting against him in the race.
Usually the NRM district leadership
would step in to reconcile the factions
and, possibly get the challengers to
quit in favour of one. In this case it
is difficult because Tumwesigye is
the chairperson of NRM in Sheema
District. He would be arbitrating his
own case.
The impasse means Tumwesigye
cannot heal the divisions since he is
contesting. Amidst the chaos, many
party faithful fear the divisions might
cost them the election. They point
at divisions that rocked NRM and
contributed to its loss in the Rukungiri
woman MP by-election.
To heal some of the party divisions
in the district, Kabigumira and a
few other NRM stalwarts sought the
counsel of Prof. Ephraim Kamuntu,
the minister for Tourism, Wildlife and
Antiquities, to act as an arbiter in the
squabbling NRM house in Sheema.
To beef up these efforts, Kabigumira
says, the NRM chairman; President FDC candidate Virginia Plan Mugyenyi campaigning in Sheema.  NET PHOTO
Yoweri Museveni asked Chris
Rwakasisi, a historical figure in race, Mesarch Katusiime, also voices Independent.
Sheema owing to his time as a his concerns about Tumwesigye. “The He is also fronting his record as
powerful minister in the Obote II era big thing here is the standing of Elioda a longtime patron of students from
but now allied with the government, (Tumwesigye). People are fighting Sheema at Makerere University and
to join arbitration efforts. Museveni the dominance of some individuals. Uganda Christian University, Mukono
is not willing to see NRM lose three You can imagine someone who is a but clearly the race is between NRM
parliamentary elections in a row minister and MP wanting to control and FDC.
despite having an unassailable everything.” As has become the norm for
majority in parliament. Katusiime, who resigned a few elections this year, the campaigning
That is why Kabigumira says he is weeks ago as the Vice Chancellor has also centered on the issue of
canvassing for votes to make sure the of Ankole Western University to ruling party MPs who passed the Age
ruling party does not lose this seat to concentrate on the campaign says Limit Bill to allow Museveni to run
Virginia Plan Mugyenyi, the candidate Tumwesigye should stay out of again. Mugyenyi says Tumwesigye
of the main opposition party; the the race owing to his position as a supported the Bill without bothering
Forum for Democratic Change (FDC). member of cabinet. to consult his constituents.
Although there is no law barring “That is the major question in this The Age Limit Bill passed last year
Tumwesigye from contesting for municipality. Even the home of the has caused trouble for some NRM MPs
this seat, Mugyenyi is playing Sheema South MP Ephraim Kamuntu who saw it through. Some even fear to
up the unfairness card to see that is in the municipality but he is not return to their constituencies.
Tumuwesigye does not take the seat. contesting so we are all wondering,” Buoyed by the by-election win in
“We are there to fight the unfairness says Katusiime. Rukungiri recently, FDC top brass
of Tumwesigye,” she told The Although considered a long shot for have stumped for Mugyenyi. Former
Independent, “He is a minister and has the election, Katusiime is also touting party presidents; Dr. Kizza Besigye,
an MP seat he never resigned.” his development record in Sheema. Mugisha Muntu, party president
Mugyenyi says it is unacceptable for He opened Rwebiita Preparatory Patrick Amuriat, vice chairperson
somebody to hold two seats. She adds School in 2016, something he thinks Salaamu Musumba, Ingrid
that there is a vacuum in Sheema. could give him a chance. “At first I Turinawe, MPs Nandala Mafabi,
“We want to bring back the old thought it was not so significant but Francis Mwijukye have vigorously
glory of Sheema and this is partly due later I realised how I am helping so campaigned for the FDC candidate.
to the unfairness of cheating others,” many people by giving bursaries to They are mainly assailing NRM’s
she says, “Even from the primaries, disadvantaged children and parents record in Sheema and the unfairness
it’s clear he cheated.” who cannot take their kids to schools of Tumwesigye’s bid.
An independent candidate in the in Mbarara and Kampala,” he told The

July 20 - 26, 2018 15

news analysis
President Museveni welcomes Dr. Riek Machar at State House Entebbe as President Salva Kiir (standing
far right) looks on. President Omar al Bashir of Sudan attended the meeting on July 07.   PPU PHOTO
South Sudan’s peace
agreements without trust
Latest meetings between Kiir, Machar
and regional leaders offer slim hope
By Ronald Musoke
S
ince South Sudan President Salva
Kiir and his main rival Dr. Riek
Machar agreed to a permanent
ceasefire in Khartoum on June 27,
many refugees living in Uganda have been
watching proceedings with cautious opti-
mism.
Malual Bor Kiir told The Independent that
he doubts the current peace process will
bring any lasting peace in South Sudan.
Instead, he sees the peace process being
more about dividing positions among the
leaders.
“The war is no longer about Kiir and
Machar,” he told The Independent on July
16, “Right now there are up to 14 warring
parties.”
Malual, an articulate youth, is one of over
a million South Sudanese refugees living in
Uganda. But he yearns to return home to
South Sudan.
This is his second stint in Uganda as a
refugee. He told The Independent that he first
lived in Uganda as a refugee for close to
a decade until he left in 2011 when South
16 July 20 - 26, 2018
Sudan gained independence after a pro-
tracted civil war.
He says he was desperate to begin a new
life as “a free and proud South Sudanese.”
And everything looked rosy until 2013
when war broke out in the world’s young-
est nation. Malual had no option but to flee
southwards again—to Uganda.
The war broke out when Salva Kiir
accused his then-deputy, Machar, of plot-
ting a military coup. Since then, the conflict
has expanded, dashing the optimism that
accompanied independence from Sudan
two years earlier.
As the fighting intensified, more than a
dozen warring factions were formed—most
of them under the umbrella called South
Sudan Opposition Alliance. Many of these
are now part of the Khartoum agreement
between Kiir and Machar. But many remain
out, casting doubt on the durability and
value of the agreement.
Garang Mabior, the spokesperson of one
of the main opposition groups, SPLM/IO
told Al Jazeera early this month that they
reject some of the proposals in the agree-
ment.
The leaders in and out of government in
South Sudan have previously been involved
in multiple attempts at peace deals. But they
have always failed. This has left the long-
suffering citizens wondering whether this
latest attempt at peace will fall apart as well.
Kiir and Machar, for example, signed a
peace agreement in August 2015. But it col-
lapsed about a year later, in July 2016, when
fighting broke out between the two sides in
the capital, Juba.
The war has left the oil-rich country’s
economy in tatters and its agriculture sector
disrupted. The war has also been marked
by atrocities by all sides documented by
the UN and there has been fear of possible
genocide. UN peace keepers have been
deployed since South Sudan’s indepen-
dence in 2011.
Keeping hope alive
Despite the bad history, some refugees
like Malual, are optimistic that the agree-
ment will this time stand because of the
heavy involvement of almost all heads of
state of the East African region.
The Intergovernmental Authority on
Development (IGAD) has since the start of
the year been holding various talks with
warring faction leaders and other relevant
players to find lasting peace in South Sudan.
The on-and-off talks climaxed on June

20 when Kiir and Machar first met face to
face in the Ethiopian capital Addis Ababa
at a private event overseen by the Ethiopian
Prime Minister, Abiy Ahmed.
The next day, the heads of state in the
IGAD bloc held the 32nd Extraordinary
Summit focusing on South Sudan in the
Ethiopian capital.
Machar who has been in virtual house
detention in Pretoria was only allowed to
travel under a deal brokered between South
African President Cyril Ramaphosa and his
Kenyan counterpart, Uhuru Kenyatta under
the auspices of IGAD’s council of foreign
ministers.
A week later, on June 27, Kiir and Machar
signed the agreement in Khartoum.
After the Khartoum agreement; to further
strengthen it, on July 7, Kiir and Machar
met in Entebbe, with Ugandan President
Yoweri Museveni. The meeting was attend-
ed by President al- Bashir and was aimed at
polishing off outstanding issues on gover-
nance and power sharing in South Sudan.
The Khartoum Declaration Agreement
has five critical areas that will form the
foundation of a comprehensive peace
agreement. These include; a permanent
ceasefire; reforms in the security sector;
rehabilitation of South Sudan’s oil wells
and improvement of the South Sudanese
infrastructure connected with the livelihood
of the citizens. The agreement further calls
for the opening of corridors for humanitar-
ian aid, the release of prisoners of war and
political detainees, the withdrawal of forces,
and a transitioning unity government to be
formed within four months which will gov-
ern the country for 36 months.
It also allows members of the African
Union and the East African Community
together with the East African regional
bloc—IGAD that has been pushing peace
efforts— to deploy the necessary forces to
supervise the agreed permanent ceasefire.
Another proposal is to have three differ-
ent capitals for South Sudan to distribute
power. But the mechanisms of how the sig-
natories will go about improving the infra-
structure and basic service in sectors that
cater to the day to day livelihood of citizens
is loosely described in the agreement with
the provision that the parties are to appeal
to the international community for help.
Some of the provisions have not gone
well with some of the parties involved
in the peace process. Garang Mabior, the
spokesperson of one of the opposition
groups, SPLM/IO told Al Jazeera early this
month that they reject the three capitals pro-
posal because South Sudan is one country.
The provision for the African Union
and IGAD to provide forces to oversee the
ceasefire has also not gone down well with
the rebel group, and Garang said there was
no guarantee the ceasefire will work.
Some factions have warned that they do
not recognise the South Sudan parliament’s
recent extension of President Kiir’s tenure.
On July 12, the South Sudanese parliament
voted unanimously to approve the exten-
sion of Kiir’s term for three more years.
The Transitional Constitution Amend-
ment Bill No.5 of 2018 was, according to
Speaker Anthony Lino Makana, designed to
avoid a power vacuum as Kiir’s term ends
in August under the 2015 peace agreement
signed in Addis Ababa. Under the new
arrangement, Kiir can now remain in power
until 2021.
Enforcing the embargo
Meanwhile, on July 13, the UN Security
Council imposed an arms ban and other
targeted sanctions on South Sudan, on
grounds of persistent political stalemate
in the country. This followed a UN report
released on July 10 alleging mass atrocities
committed by the government troops in the
former Unity State in April and May.
The report said 232 civilians were bru-
tally killed and women and girls subjected
to mass rape. The UN says the atrocities
amount to war crimes and has demanded
that the military commanders who led the
operations face justice.
The US-led resolution won the minimum
nine votes needed, while Russia, China,
Ethiopia, Bolivia, Equatorial Guinea and
Kazakhstan abstained, saying there were
already regional attempts to revitalize the
South Sudan peace process. But the US
remained resolute in its support for an arms
embargo.
“South Sudan’s people have endured
unimaginable suffering and unspeakable
atrocities. Their leaders have failed them,”
US Ambassador to the United Nations, Nik-
ki Haley, told the council before the vote,
“We need the violence to stop.”
But the South Sudan Foreign Affairs min-
istry spokesperson, Mawien Makol, said
the arms ban would instead jeopardise the
government’s peace efforts.
“Well, the government is not happy with
these sanctions. We are seeing them as not
being the solution to instability,” he told
Reuters. He instead called for cooperation
between the international community and
Juba so as to achieve lasting peace. Some
observers say the move to extend Kiir’s
mandate until 2021 is likely to undermine
the peace talks as opposition groups have
said the change would be illegal.
South Sudan’s UN Ambassador Akuei
Bona Malwal told the council that the reso-
lution would undermine peace and was a
slap in the face of those organizations who
are trying to bring peace in South Sudan.
But Britain’s UN Ambassador Karen
Pierce said the resolution is not against the
peace process; it is designed to protect the
people of South Sudan.
“We expect the peace process to con-
tinue,” she said.
Some regional observers, including
news analysis
Arthur Bainomugisha, the executive direc-
tor of the Advocates Coalition for Develop-
ment and Environment (ACODE), an influ-
ential Kampala-based think tank, also told
The Independent on July 16 that the sanctions
could push the conflicting parties towards
the negotiating table in a carrot and stick
strategy by the international community.
Bainomugisha is familiar with these
arrangements after participating as a Civil
Society Fellow with the International Peace
Institute (IPI), a New York based think
tank, in the peace talks between President
Museveni’s government and the Lord’s
Resistance Army (LRA) rebels, that were
mediated by the Government of Southern
Sudan and the international community.
“The proliferation of arms in the country
is responsible for fuelling the conflict so
curtailing the flow of arms into a war zone
is one way of ending the war,” said Baino-
mugisha.
“We know that both the government
and the rebels have been receiving lots of
arms from their supporters and perhaps
that explains why they have not committed
themselves to a peace deal,” Bainomugisha
said, “So within the UN framework, this
is one way of drying up the resources so
that the parties are induced to negotiate for
durable peace.”
Sabiiti Makara, a professor of political
science also told The Independent that the UN
Security Council’s arms embargo is meant
to be complementary because if both sides
are “armed to the teeth” and they trust
more their ammunition, may be they will
not concede to the peace process or if they
do, they are likely to harbour some other
motives on both sides.
But for some, like Dr. Solomon Asiimwe,
a senior lecturer of governance at Uganda
Martyrs University, the concern is more
about enforcement of the embargo.
Asiimwe says the UN has come in with
the arms embargo as part of the solution
but he says it is important to put in place
a monitoring mechanism for it to succeed.
Asiimwe wants the UN to sanction whoever
breaks the arms embargo.
“The international community should
make the South Sudan conflict more cum-
bersome for the protagonists,” he said, “The
solution to South Sudan’s conflict is to make
it so difficult (for them) to carry on.”
As for Malual, he says Machar and Kiir
have friends in the region and they can con-
tinue buying arms through their friends.
“It is important to make regional
players embrace this embargo,” he says.
And his main worry and possibly that of
most of the Sudanese refugees, is that the
body language between Kiir and Machar
during all the recent peace engagements,
appears rather nervous and speaks of
suspicion not trust.
July 20 - 26, 2018 17
news analysis
By Martin Plaut

I
n the first week of July, Ethiopian
Prime Minister, Abiy Ahmed visited
neighbouring Eritrea, to be greeted
by President Isaias Afwerki. The vast
crowds that thronged the normally quiet
streets of Eritrea’s capital, Asmara, were
simply overjoyed. They sang and they
danced as Abiy’s car drove past. Few
believed they would ever see such an
extraordinarily rapid end to two decades
of vituperation and hostility between their
countries.
After talks the president and prime
minister signed a declaration, ending 20
years of hostility and restoring diplomatic
relations and normal ties between the
countries.
The first indication that these historic
events might be possible came on June 4.
Abiy declared that he would accept the
outcome of an international commission’s
finding over a disputed border between
the two countries. It was the border
conflict of 1998-2000, and Ethiopia’s
refusal to accept the commission’s ruling,
that was behind two decades of armed
confrontation. With this out of the way,
everything began to fall into place.
The two countries are now formally at
peace. Airlines will connect their capitals
once more, Ethiopia will use Eritrea’s ports
again – its natural outlet to the sea – and
diplomatic relations will be resumed.
Perhaps most important of all, the
border will be demarcated. This won’t be

Eritrea, Ethiopia
an easy task. Populations who thought
themselves citizens of one country could
find themselves in another. This could
provoke strong reactions, unless both sides

show flexibility and compassion.
For Eritrea there are real benefits - not
only the revenues from Ethiopian trade
through its ports, but also the potential of
very substantial potash developments on
the Ethiopia-Eritrea border that could be
very lucrative.
For Ethiopia, there would be the end to
Eritrean subversion, with rebel movements
deprived of a rear base from which to
attack the government in Addis Ababa. In
return, there is every chance that Ethiopia
will now push for an end to the UN arms
embargo against the Eritrean government.
This breakthrough didn’t just happen. It
has been months in the making.
The deal
Some of the first moves came quietly
from religious groups. In September last
year the World Council of Churches sent
a team to see what common ground there
was on both sides. Donald Yamamoto,
Assistant Secretary of State for Africa, and
one of America’s most experienced Africa
hands, played a major role.
Diplomatic sources suggest he held
make peace
How it happened and what lies ahead
talks in Washington at which both sides
were represented. The Eritrean minister
of foreign affairs, Osman Saleh, is said
to have been present, accompanied by
Yemane Gebreab, President Isaias’s
long-standing adviser. They are said to
have met the former Ethiopian prime
minister, Hailemariam Desalegn, laying
the groundwork for the deal. Yamamoto
visited both Eritrea and Ethiopia in April.
Although next to nothing was
announced following the visits, they are
said to have been important in firming up
the dialogue.
But achieving reconciliation after so
many years took more than American
diplomatic muscle.
Eritrea’s Arab allies also played a key
role. Shortly after the Yamamoto visit,
President Isaias paid a visit to Saudi
Arabia. Ethiopia – aware of the trip –
encouraged the Saudi crown prince to get
the Eritrean president to pick up the phone
and talk to him. President Isaias declined,
but – as Abiy Ahmed later explained – he
was “hopeful with Saudi and U.S. help the
issue will be resolved soon.”
So it was, but one other actor played a
part: the UAE. Earlier in July, President
Isaias visited the Emirates. There are
suggestions that large sums of money were
offered to help Eritrea develop its economy
and infrastructure.
Finally, behind the scenes, the UN and
the African Union have been encouraging
both sides to resolve their differences. This
culminated in the UN Secretary General,
Antonio Guterres, flying to Addis Ababa

18 July 20 - 26, 2018


for a meeting on July 09 – just hours
after the joint declaration. Guterres told
reporters that in his view the sanctions
against Eritrea could soon be lifted since
they would soon likely become “obsolete.”
It has been an impressive combined
effort by the international community,
who have for once acted in unison to try
to resolve a regional issue that has festered
for years.
Risks and dividends
For Isaias these developments also
bring some element of risk. Peace would
mean no longer having the excuse of a
national security threat to postpone the
implementation of basic freedoms. If the
tens of thousands of conscripts, trapped in
indefinite national service are allowed to
go home, what jobs await them? When will
the country have a working constitution,
free elections, an independent media and
judiciary? Many political prisoners have
been jailed for years without trail. Will they
now be released?
For Ethiopia, the dividends of peace
would be a relaxation of tension along its
northern border and an alternative route
to the sea. Families on both sides of the
border would be reunited and social life
news analysis
until the election of Prime Minister Aiby in
February, has been side-lined. It was their
Diplomatic
quarrel with the Eritrean government that
led to the 1998–2000 border war.
sources
The Eritrean authorities have rejoiced
in their demise. “From this day forward,
suggest he
TPLF as a political entity is dead,” declared
a semi-official website, describing the
movement as a ‘zombie’ whose “soul
held talks in has been bound in hell”. Such crowing is
hardly appropriate if differences are to be
Washington resolved. The front is still a significant force
in Ethiopia and could attempt to frustrate
at which the peace deal.
These are just some of the problems
both sides that lie ahead. There is no guarantee
that the whole edifice won’t collapse, as
were the complex details of the relationship
are worked out. There are many issues
represented
that have to be resolved before relations
between the two countries can be returned
to normal. But with goodwill these can be
overcome, ushering in a new era of peace
and prosperity from which the entire
region would benefit.
and religious ceremonies, many of which Martin Plaut is a Senior Research Fellow,
go back for centuries, could resume. Horn of Africa and Southern Africa,
But the Tigrayan movement – the Tigray Institute of Commonwealth Studies, School
People’s Liberation Front (TPLF) - that of Advanced Study
was dominant force in Ethiopian politics
July 20 - 26, 2018 19
news analysis
Taxing the intangible economy
As growth in the intangible economy intensifies,
current revenue gaps will become gaping holes
By Roger E.A. Farmer
S
ome very clever people,
including the president of
the European Central Bank,
Mario Draghi, and Andy
Haldane, chief economist at the Bank
of England, are expressing concerns
over the slowdown in productivity
growth. And, given that productivity
(measured as GDP per hour worked)
is the ultimate driver of increases in
living standards, they are right to be
worried.
For most people in the West, wages
and living standards have stagnated
for decades. If you were a factory
worker in the north of England in
1970, for example, odds are good that
your children will earn less in real
20 July 20 - 26, 2018
terms than you did 50 years ago. The
same is true for workers elsewhere
in Europe and in the United States,
an economic reality that is partly
responsible for the rise of populist
politics.
The trajectory has been trending
down for years. As Figure 1 shows,
average annual productivity growth
in five OECD countries – France,
Germany, Japan, the U.S., and the
United Kingdom – was 2.4% in the
1970s. During the decade after 2005,
it was 0.6% in those countries. And,
although the “Great Recession” that
started in 2007 contributed to the
decline, the average had been falling
well before the financial crisis began.
Lower productivity growth has
meant reduced living standards for
many, but not all. For a financial
analyst on Wall Street or in the City
of London, life is not so bad. And
for the independently wealthy –
especially those with a majority of
income derived from a stock portfolio
– standards of living have actually
increased in recent decades.
But it’s worth asking how much of
this increased prosperity was paid in
the form of taxes, because the answer
– not as much as if income had been in
wages and salaries – is one reason why
so many economists are so worried.
Consider that capital gains for top
earners in the UK are taxed at 28%,
and the ceiling in the U.S. is 20%. By
comparison, the top rates for income
tax are 45% and 39%, respectively.
In other words, when high-tech
 news analysis
companies pay their workers with
stock options, as many are increasingly
doing, the gap in taxable revenue is
significant – 17% in the UK, and 19%
in the U.S., to be precise. With an
ever-greater proportion of national
wealth being channeled into stock
appreciation, the lost revenue will need
to be found in other places.
The disparity is even more striking
in other parts of Europe. Figure 2
illustrates the difference between the
top marginal income-tax rate and
the tax rate on capital gains in nine
Western economies (including the U.S.
and the UK). In Italy and Belgium,
residents pay no capital gains tax; a
rich Belgian who receives all of his or
her income in the form of stock options
can avoid paying income tax entirely.
Among Europe’s biggest economies,
Germany is the only exception; there,
capital gains are treated as ordinary
income, so there is no loss to the
government when income is received
as stock appreciation as opposed to
dividends.
Digital music, mobile apps, Google,
and Twitter – these and other
“intangible” technological miracles
have changed our lives. But the many
benefits of modern innovation have not
been reflected in standard measures
of GDP. As Jonathan Haskel and
Stian Westlake point out in their new
book, Capitalism without Capital, one
explanation is that the measurements
themselves are inadequate.
For example, in the past, making
an investment meant purchasing a
new factory or a new machine; it was
the acquisition of a physical asset
that appeared immediately in GDP
statistics. Today, though, investments
often refer to something impossible
to touch – like computer software,
branding, or an archive of data. These
“intangible investments” are booked in
GDP accounts as intermediate goods,
not as output.
But intangible investments influence
company profitability. If technology
companies’ profits are continually
reinvested as intangibles, earnings
may never appear as output in
GDP statistics, but they will affect
the company’s market value. For
government leaders concerned with
providing goods and services during a
period of slow growth, getting a handle
on this unmeasured GDP is essential. the companies’ wealthy owners. The Economics at the University of
Fortunately, there is a solution. As alternative – to maintain the status Warwick, Research Director at the
I have argued on my blog, we must quo – will only ensure that as growth National Institute of Economic
rethink how tax revenue is raised. in the intangible economy intensifies, and Social Research, and author of
If all income were taxed at the same current revenue gaps will eventually Prosperity for All: How to Prevent
rate, intangible investments made become gaping holes. Financial Crises.
by companies would still generate
revenue in the form of taxes paid by Roger E.A. Farmer is Professor of Copyright: Project Syndicate, 2018.

July 20 - 26, 2018 21

rwanda
Hope over China,
Rwanda relations
Xi Jinping is first ever Chinese president to visit Rwanda
By Daniel C. Ntwari
T
he visit of hope. That is how Chinese
President Xi Jinping’s two-day of-
ficial visit to Rwanda from July 22
to 23 is being described. The visit
makes Xi Jinping the first Chinese president
ever to visit Rwanda and Rwandans are
counting on Chinese partnership and in-
vestments to benefit from the visit.
22 July 20 - 26, 2018
Also to be strengthened further is the
Made-in-Rwanda initiative that the govern-
ment is counting on to spur exports and
reduce its trade deficit and dependence on
imports.
President Xi Jinping’s visit follows a
visit to China last March by President Paul
Kagame. During that visit, the two leaders
held bilateral talks and President Xi said
China would continue to support Rwanda
in various sectors, especially in infrastruc-
ture development and agriculture moderni-
sation.
Speaking to The Independent ahead of
Chinese President Xi Jinping’s visit, Rwan-
da’s Minister of State for Foreign Affairs,
Olivier Nduhungirehe, said the visit is a
follow up on the Forum on China-Africa
Cooperation (FOCAC) in 2015, when Presi-
dent Xi Jinping announced a three-year $60

billion aid to Africa, including a $5 billion
package in grants and zero interest loans for
African countries.
Both President Kagame and Jinping are
expected to attend the FOCAC summit
scheduled for September 2018, in China,
which more discussions on trade progress
between both continents is expected to take
centre stage at a time when the U.S. is side-
lining China’s global trade.
China-Rwanda relations
China is one of Rwanda’s traditional
markets, where it exports tea, minerals, red
pepper (Akabanga) and pyrethrum, among
others. Rwanda benefits from a duty-free
treatment of 97% for its products in the Chi-
nese market.
On the other hand, key challenges to
trade between China and Rwanda include
high transportation costs and the high cost
of production due to unreliable electricity.
The national carrier, RwandAir plans to
launch flights to Guangzhou in 2019.
Currently, there are over 20 Chinese
companies in the sectors of construction,
manufacturing, mining, engineering and
services that have set up shop in Rwanda.
They include C&H Garments, China
Civil Engineering Construction Corpora-
tion, pay television Star Africa Media, Bei-
jing Construction Engineering Group, and
China Road and Bridge and several hotels.
C&H, which began operations in 2015 in
the Kigali Special Economic Zone, employ-
ees over 800 Rwandans (including trainees)
in making police uniforms, safety vests,
mainly, produces fabrics for the export
market to countries such as Belgium, and
the USA.
This affirms China’s ambassador to
South Africa, Tian Xuejun, who at the
FOCAC summit pledged to help the conti-
nent reach its goal of seeing manufacturing
account for more than 50% of GDP by 2063.
“We want to change the narrative from
‘Made-in-China’ to ‘Made-in-Africa, with
China,” Tian Xuejun said.
Minister Nduhungirehe said bilateral
agreements signed between China and
Rwanda during President Xi’s visit will
boost trade, infrastructure development,
and strengthen the Made-in-Rwanda pro-
gramme and the country’s import substitu-
tion strategy.
“Some of the memoranda of understand-
ing, agreements, and projects that will be
signed will in areas such as infrastructure,
roads, and health,” Nduhungirehe said.
He named Masaka Hospital, Musanze
Polytechnic, and some processing plants as
likely beneficiaries.
Rwanda’s collaboration with Chinese
expertise and technology in the local textile
and apparel sector has had a huge boost on
the government’s goal to wean the country
of secondhand garments.
Rwanda announced a ban on used tex-
tiles while at the same time scrapping taxes
on raw materials for the textile industry
in the 2018/19 fiscal year budget. It also
rwanda
increased the levy on imported used clothes
from $2.5/ kg to $4/kg.
Exporters optimistic
Exporters are also optimistic that the visit
could help ease access to the huge Chinese
market.
Exporters have been complaining about
difficulties of entering the Chinese market
because of its stringent standards require-
ments and Minister Nduhungirehe said this
is something that could be raised between
the visiting Chinese private sector delega-
tion and their Rwandan counterparts.
Rwandan metal exporters said that they
were focusing on increasing mineral exports
to China.
Abdul Ndarubogoye, the chairman of
TransAfrica, a logistics firm in Kigali, was
hopeful that Chinese firms would now
invest in local aviation sector, saying this
would ease transport costs. He said cur-
rently the cost of air transport continues to
make it difficult for local exporters to meet
the Chinese demand.
“It costs about $5 to $10 to transport of
kilogramme of products like tea and cof-
fee, and there are only a few cargo planes
like Ethiopian, Kenya Airlines, Turkish
Airlines,” Ndarubogoye said, “This cost can
be reduced if there were other players in the
airline transport or alternatively have other
means of transport by containers which is
cheaper and in large quantities.” He said
because of the high cost, he only exports
30% of his capacity in tea and coffee.
Modi visits
Meanwhile, Indian Prime Minister
Narendra Modi and Filipe Nyusi of
Mozambique are also expected to
visit Rwanda, according to minister
Nduhungirehe. Kagame has visited India
twice to further strengthen ties between
the two countries, and the national carrier,
RwandAir already operates direct flights to
Mumbai, India having opened the long haul
route early last year.
July 20 - 26, 2018 23
rwanda
Kwita Izina 2018
Celebrating 14 years of dedicated
conservation, community efforts
By Stephen Nuwagira
T
his year, the gorilla naming cer-
emony commonly known as ‘Kwita
Izina’ will be a celebration of the
unyielding efforts by government
and stakeholders and gains made in the
conservation of Rwanda’s biodiversity par-
ticularly, the endangered mountain gorillas.
Chief Tourism Officer at Rwanda Devel-
opment Board (RDB) Belise Kariza says
great strides have been made in gorilla
conservation as evidenced by the increasing
number of mountain gorillas in the Volca-
noes National Park.
“This could have not happened without
the support and collaboration of our conser-
vation partners as well as the cooperation of
the members of the community surround-
ing the park,” says Kariza.
Initiatives by the government and other
parties, such as the Kwita Izina, Trans-
boundary Cooperation and local commu-
nity education and engagement have all
played a major role in conserving gorillas,
she said.  tion efforts for the endangered mountain
As a result of such conservation efforts,
the population of the endangered mountain
24 July 20 - 26, 2018
gorilla has increased to 604 in 2016 in the
Virunga Massif from 480 in 2010.
The Virunga Massif is comprised Mikeno
Sector of Virunga National Park in the
Democratic Republic of Congo, Volcanoes
National Park in Rwanda and Mgahinga
Gorilla National Park in Uganda. Mountain
gorilla numbers in the entire area had fallen
as low as 242 in 1981.
“Kwita Izina continues to position Rwan-
da on the conservation map and serves as
a platform to celebrate conservation suc-
cess together with visitors from all over the
world,” the official added while unveiling
this year’s activities that will prelude the
event.
This year, which is the 14th baby gorilla
naming ceremony, 23 infant mountain
gorillas will be named in an event slated
for September 7, 2018 on the foothills of the
Volcanoes Mountains in Musanze District.
It will be conducted under the theme, ‘Con-
servation is Life’.
Kwita Izina was introduced in 2005 with
the aim of creating awareness of conserva-
gorilla.
Jean Marie Vianney Gatabazi, the gover-
nor of Northern Province lauded the efforts
of government and good leadership that
have ensured protection of Rwanda’s bio-
diversity.
“Elsewhere, people may encroach on
protected areas and destroy nature but
in Rwanda our government continues to
protect biodiversity, thanks to our unique
leadership,” Gatabazi said.
A number of famous international figures
and conservationists, including English Pre-
mier League football team Arsenal stars, are
expected to attend the event.
In May, RDB signed a partnership deal
with Arsenal, making the club Rwanda’s
official tourism partner, and under the
three-year deal, Arsenal players’ jerseys will
have the “Visit Rwanda” on the sleeves of
their jerseys effective the upcoming season.
Gertrude Majyambere, the Rwanda Tours
and Travel Association (RTTA) executive
director, said each tour operators was given
an opportunity by the organisers to invite
at least one colleague from abroad, who
has not been to Rwanda before, to attend
the Kwita Izina activities. “This move is
intended to help the foreign tour operators
understand Rwanda better as a destination.
Therefore, RTTA and members will use the
opportunity to enlighten the visiting foreign
tour and travel operators about Rwanda’s
unique offerings and conservation efforts,”
said Majyambere in an interview with The
Independent on July 17. She added that
the local tour operators will also explain to
them about the Arsenal deal besides using
the event strengthening their marketing
networking.

Last year, Rwanda received 1.3 million
visitors, and the tourism sector created
90,000 jobs and is the country’s largest for-
eign exchange earner.
Kwita Izina activity roadmap for 2018
According to RDB, there are many activi-
ties lineup in preparation for the grand event
that attracts global, regional and local visitors
and conservationists. There will be commu-
nity projects in Nyamagabe and Kayonza
districts.
As part of the revenue sharing pro-
gramme, community projects in Kitabi
sector, Nyamagabe and Ndego sector in
Kayonza district will be launched on July 27
and September 5, respectively. These include
houses built for Kitabi sector residents who
had formerly lived in the Nyungwe National
Park buffer zone, while a mobile clinic, solar
lighting systems and solar water pumps will
be handed over to residents of Karambi and
Sangano villages in Ndego sector.  “We are in contact with Cameroon busi-
About 10% of revenues generated from
tourism activities are shared with communi-
ties surrounding parks. The government,
through the Rwanda Development Board,
has spent over $1.28 million of tourism rev-
enues to more than 158 community-based
projects.   to secure the
The ‘Conversation on Conservation’
forum will take place alongside an exhibition
focused on conservation trends and practices
on September 4-5; and there will ‘igitaramo’
cultural celebratory event is slated for Sep-
tember 7.
Volcanoes park expansion
Meanwhile, the government is in
advanced stages to expand the Volcanoes
National Park to ensure adequate habitat for
the mountain gorilla following an increase
in their numbers. Presently, the park covers
16,027.8 hectares.
“The plan is a major step in the consolida-
tion of Rwanda’s conservation gains for the
benefit of communities today and future
generations,” Kariza said.
Through gorilla conservation and tourism,
we are directly benefitting from these won-
derful species. She said the park expansion
will ensure, not only the adequate habitat of
the endangered mountain gorilla, but it will
also improve both socio-economic opportu-
nities for more than 18,000 people and the
tourism experience in Volcanoes National
Park.
In a related development, Rwanda plans
to open its fourth national park next year.
The Gishwati-Mukura National Park will
increase the country’s tourism offerings,
ensuring visitors stay and enjoy varied
attractions across the country. The park is
located in districts of Ngororero and Rutsiro
in the north-western part of the country.
Government adopted a law to transform
Gishwati-Mukura, a former rainforest, into a
national park in February 2016.
Ingabo Dairy eyes
bigger export market
Agro-producer profits from
added natural flavours
By Elias Hakizimana
A
fter entering foreign markets like in
Bukavu and Goma in neighbour-
ing DR Congo, Rwandan dairy
products maker, Ingabo Dairy, has
eyes on even bigger markets abroad.
nesses that are interested in our products,”
says Andre Rwayitare, the founder of the
Nyahibu District based company.
He told The Independent in an interview
that the com-
pany’s goal is
Hazard Anal-
ysis Critical
Control Point
(HACCP) cer-
tification for
food products
and focus
on entering
markets in
more African
countries with
their cheese
and yoghurt
products. The HACCP certification is the
recommended standard for safe foods for
human consumption.
Rwayitare said the company, with the
help of the Rwanda Standards Bureau
(RSB), already has the S-mark of quality
and, after getting the HACCP certification
soon, will work to secure ISO certification.
“This will boost our ambition to enter big
export markets,” he says.
He is hoping for government support to
increase the production capacity and secure
more export markets.
Currently, the plant processes 1,200 litres
of milk per day to produce yoghurt, and
targets to increase this to 3,000 litres per day.
It makes 250,000 pieces of cheese daily,
according to Rwayitare, and is working to
increase production to 500,000 pieces cheese
every day from 5,000 litres of milk.
That is a long way from when Rwayitare
started Ingabo Dairy in 2010.
Since, at the time, a lot of quality pro-
cessed dairy products in Kigali used arti-
ficial flavouring, Ingabo Dairy made their
rwanda
products different by using natural flavours.
“Rwanda is blessed with many natural
products, including fruits that can be used
as flavours,” Rwayitare says.
With support from the Rwanda Develop-
ment Board, they started by making milk
products, like yoghurt in four natural fruit
flavours - strawberry, vanilla, mango, and
chocolate.
The firm’s plans to expand in the early
years were frustrated because the local sup-
ply of fruit for natural flavouring proved
inadequate,
yet they were
determined
to reduce the
amount of
fruit imports
from abroad;
including
from Nairobi,
Kenya.
But the
company
has since
mobilised
local farmers
to grow more
fruit and is now set to roll.
To support strawberry farmers, the com-
pany increased the price from Rwf1,000 per
a kilogramme to Rwf2,000. This has encour-
aged the farmers to increase acreage under
the crop.
Rwayitare says unfair competition from
makers and vendors of substandard prod-
ucts, which are sold at cheaper prices, is the
main challenge they face. He says it is a big
obstacle to market expansion.
Ingabo Dairy’s plans are in line with
Rwanda’s vision to increase its exports by
17 per cent annually. For this, the govern-
ment has in place a fund to support export-
oriented firms as one of interventions aimed
at helping to achieve this target.
The government is also promoting con-
sumption of locally-made products under
the Made-in-Rwanda initiative and the
Domestic Market Recapturing Strategy that
also seeks to reduce dependence on imports
and hence help reduce the country’s widen-
ing trade deficit.
July 20 - 26, 2018 25
New deals at Barclays, dfcu
Financial sector experts predict changes
in jobs and corporate governance culture
T
By Julius Businge
wo big banks in Uganda have
recently dominated the news
following mega deals penned,
and according to market ana-
lysts, are likely to change the
way business is run at the two
institutions.
Commonwealth Development Corpora-
tion (CDC) Group, a UK-based develop-
ment finance institution, in a June 14 letter
to dfcu bank Limited top management,
Irina Grigorenko, the Investment Director
Financial Institutions said it was undertak-
ing a review of its investment in Dfcu Lim-
ited which may lead to the disposal of some
or all of its shares in dfcu over the short to
medium term.
Earlier in 2013, CDC group confirmed it
had reached its investment horizon in the
company and would begin to systematically
divest its stake in dfcu over a period of time.
But it was agreed that its shares would be
transferred only to investors whose objec-
tives were aligned to the company’s inter-
ests and who would support the company’s
long term growth strategy.
The firm has since 2013 reduced its share-
26 July 20 - 26, 2018
holding to about 10% from 60%.
The bulk of its stake was transferred to
Norfund and Rabo Development BV (the
development finance arm of Rabo Bank),
and is currently held by Arise BV, a joint
venture involving the two entities.
In the recent communication, CDC said
that after a period of over 50 years as a
shareholder, it aspired to exit in a manner
that causes minimum disruption to the
business and ensures the orderly trading
of dfcu’s shares. It added that CDC’s objec-
tive was to identify like-minded investors
who could support dfcu in its new phase of
growth. It reported that it had entered into
negotiations with Cranemere Africa Limited
and responsAbility Investments AG, fund
managers from the US and Switzerland
respectively to buy out their 9.97%.
After dfcu took over Crane bank in 2017
for Shs200bn, it saw its net profit jump to
Shs127bn in 2017 from Shs46.27bn in 2016.
In 2015, it was Shs37bn.
This performance put it amongst the top
five banks with good performance. But the
takeover remains at the centre of contention
between DFCU, former Crane Bank own-
ers and Bank of Uganda – that cleared the
transaction.
There were reports that CDC’s planned
sale of shares and the resignation of some
of DFCU’s top managers was related to the
Crane bank deal.
On July 12, it was reported that William
Ssekabembe who has been serving as the
Executive Director and Chief of Business
at dfcu resigned to take up another role at
another financial institution.
On July 05, one of the most influential
directors on the bank’s board, Deepak
Malik, had tendered in his resignation – a
move that some analysts said would nega-
tively impact the business of dfcu.
Malik serves as the Chief Executive at
Arise B.V. He also serves as the Head of
Department – Financial Institutions and
part of the management team at Norfund.
Arise B.V. first acquired a majority stake
of over 50% in dfcu Limited, the holding
company of dfcu bank after lending US$50
million in February 2017.
The money was to help dfcu Bank meet
its short-term capitalisation needs after tak-
ing over Crane Bank in January 2017.
Arise B.V. acquired the stake in dfcu
bank from two previous large sharehold-
ers of DFCU Bank-Rabo Development B.V
and Norfinance AS (Norfund) which had
a 27.54% stake each to become the largest
majority shareholder in DFCU Bank.
Malik’s resignation as a non executive
director meant the DFCU board was then
left with five other non-executive directors

led by Elly Karuhanga as Chairman with
other members including Albert Jonker-
gouw, Winifred Tarinyeba-Kiryabwire,
Frederick Kironde Lule and Michael Alan
Turner.
Arise sticks with dfcu
In a July 6 notice, Malik, the CEO for
Arise dismissed as untrue, reports that they
were planning to sell their shares in dfcu
like CDC.
The notice read in part that Arise has
always been supportive of the growth
development plans of dfcu Bank as evi-
denced in the US$50 million bridging
finance it extended to the latter.
The notice adds that the partnership
between Arise and dfcu speaks directly to
the mandate of Arise, which is to collaborate
with local Financial Service Providers (FSPs)
in Sub - Saharan Africa to boost economic
growth through strengthening the banking
sector.
“Arise will continue to support any future
growth plans of dfcu to contribute to a
strong and efficient Ugandan bank, which
will promote financial inclusion in the coun-
try,” Malik added.
Barclays, Absa deal
As dfcu was trying to deal with the new
developments, another equally big financial
sector player, Barclays Bank Uganda Lim-
ited top officials led by its Managing Direc-
tor, Rakesh Jha called a press conference
on July 11 to announce that Barclays Africa
Group Limited had officially changed its
name to Absa Group Limited.
But Jha said the group would rename its
subsidiaries in Uganda, Botswana, Ghana,
Kenya, Mauritius Mozambique, Nigeria,
Seychelles, Tanzania and Zambia within the
next two years subject to approvals from
respective regulators.
The change of name to Absa follows the
successful reduction of its (Barclays PLC)
shares in Absa Group to exit the African
market and mainly refocus its core business
in U.K. and the U.S. But previously Barclays
PLC officials have cited risks relating to
slowdown in the African economies, cur-
rency devaluation, and corruption as some
of the factors for the exit. In addition, offi-
cials said the change of the name signals the
start of the new era for the group as a stand-
alone African banking group with deep
roots on the continent and more than 100
years of experience in Africa’s banking sec-
tor. Meanwhile, Jha said that Absa Group,
which plans to open offices in the U.K. and
U.S., had unveiled a new brand design as an
expression of its new identity on July 1.
“Our new brand is an expression of our
new group identity as a standalone African
bank with global scalability,” said Abasa’s
Group Chief Executive Officer, Maria
Ramos.
Jha Barclays Uganda MD said a single
name and brand would enable them to
unite behind a single identity, purpose and
strategy.
Asked to explain what the change of
name means to the business in Uganda,
Barclays Bank Uganda MD Jha said, it
means a continuation of the products and
services that customers currently use, and
the opportunity for the bank to do better for
its customers.
“We are here to stay,” he said.
Meanwhile, on the sidelines of the press
conference, Jha told The Independent that
they are investing heavily in new forms of
technology to improve efficiency of service
provision and general performance of the
bank. He said that they are eying opportu-
DFCU Key Milestones
 1999: Bought Uganda Leasing Company,
renamed it dfcu Leasing
 2000: Bought Gold Trust Bank, renamed
it dfcu Bank, and started commercial
banking
 2004: dfcu Limited was listed on the
Uganda Securities Exchange
 2008: Merged its two businesses (Devel-
opment Finance and dfcu Bank) to create
a “one-stop shop “under dfcu Bank
 2013: Realignment of shareholders
bringing on board a strategic partner –
Rabobank, with significant experience in
agribusiness
 2014: Consolidated business operations
into our Head Office - dfcu Towers
 2014: dfcu Bank acquired loans & depos-
its of Global Trust Bank
 2016: Aligned shareholding with Rabo-
bank, Norfund and FMO combining
to form Arise which is committed to
strengthening and developing effective,
inclusive financial systems in Africa with
a long-term perspective
 2017: Acquired some assets and liabilities
of Crane Bank
DFCU’s Shareholder Structure
Arise (Norfund, Rabobank and FMO)
58.71%
Commonwealth
Development Corporation
9.97%
National Social Security Fund
7.69
Others
23.63%
Business
nities from new forms of banking – agent
banking with over 200 agent bankers
approved by the bank and that they had
acquired approvals to offer bancassurance.
The bank recorded a 30% jump in net
profits last year and, according to Jha, they
were expecting double-digit growth for the
year 2018.
What experts said about the deals
Musa Lwanga, an economist and former
research fellow at the Makerere University-
based Economic Policy Research Centre
(EPRC) told The Independent that the dfcu
–CDC deal may not have any negative implica-
tions in the market since it is not a pullout of
capital from the bank but just a transfer of
shares to new investors.
“I don’t see any reason to worry,” he said.
Asked whether the quitting of top man-
agers would affect operations of the bank,
Lwanga said that dfcu is supervised by
Bank of Uganda and is listed and moni-
tored by the Capital Markets Authority that
works in line with the Uganda Securities
Exchange (USE) and thus, anything that
would likely destabilize the market would
easily be detected and acted upon.
“I don’t think a move by two people
would affect the entire management of the
bank,” he said.
Commenting on the Barclays change of
name, he equally sounded positive saying,
the process is happening in many markets
in Africa and that he had seen the two insti-
tutions communicate to relevant players on
the matter.
Norbert Kagoro, a partner at Deloitte, an
audit firm, described the two deals as ‘high
profile’ and that it is not surprising to see
that the main shareholders were making
key decisions without the knowledge of
other officials in junior positions.
He said that once the transaction is com-
plete, new shareholders have to ensure
that they do proper communication on the
changing culture of the company and the
likely staff changes and remuneration.
“New shareholders have to work hard
to increase confidence of the managers,”
Kagoro said.
On the departure of the two top manag-
ers, Kagoro said it is normal for any busi-
ness and that would pave way for the new
faces at management level.
He added that managers move for many
reasons among them a conviction that they
cannot work with new shareholders.
CPA Frederick Kibbedi, a partner at PKF
(Accountants and Business Advisors), said
for such transactions to work out in a man-
ner that supports business growth, those
behind the transaction must ensure that all
stakeholders – staff, minority shareholders,
regulators – are informed about the transac-
tion. He said that employees must only
be informed about the transaction when
it is complete.
July 20 - 26, 2018 27
Business
Afreximbank ditches
Nairobi for Kampala
The bank is expected to provide finance to export projects in
manufacturing, mining, infrastructure and related ventures
By Isaac Khisa
T
he African Export-Import Bank
(Afreximbank) has ditched Nairobi
in favour of Kampala to set up its
regional headquarter.
Benedict Oramah, the bank’s president,
told The Independent in an interview at the
end of the 25th Anniversary and Annual
General Meeting held in Abuja, Nigeria,
from July 11-14, that they expect to conclude
negotiations with the government soon.
“We think that by the end of this year,
we would have finalised negotiations for
setting up the East African branch in Kam-
pala,” he said.
Oramah said the bank’s change of plan
follows long winding negotiations with the
Kenyan government that did not seem to
yield any positive result within the shortest
time possible.
He revealed that the proposal in 2015,
to have a branch in East Africa’s largest
economy was approved at the same time
with that of Abidjan, Ivory Coast, which
was opened more than two years ago.
“Countries normally make formal
requests for us to host a branch there and
if it doesn’t meet the requirement, we go to
the next one,” he said.
“In Kenya, it took particularly longer
to have the agreement signed; it would
have been finalised long time ago... So we
couldn’t think that we could continue to
negotiate and negotiate. We had to go to
another country.”
The issues that were under contention
in Kenya included granting diplomatic
immunity for the bank’s top executives and
exempting them from paying local taxes.
Obi Emekekwue, the head of communica-
tions at the Afreximbank said the bank is
presently looking forward to being allo-
cated space in Kampala and later land to set
28 July 20 - 26, 2018
up the branch.
“The driver for us setting up a branch in
Kampala is to move closer to the people we
serve in the East African region,” he said.
The bank’s other regional headquarters
are in Abuja (Nigeria), Harare (Zimbabwe),
Tunis (Tunisia) and Cairo (Egypt).
The bank, established in Abuja, Nigeria
in October 1993 by African Governments,
African private and institutional investors
as well as non-African financial institutions
and private investors aims at financing, pro-
moting and expanding intra-African and
extra-African trade.
Early in May this year, Frank K. Tum-
webaze, the Minister of Information Com-
munication and Technology and National
Guidance, said during a media briefing that
Cabinet had approved a plan to have Afrex-
imbank hosted in Kampala.
“It (Cabinet) approved establishment of
the African Export-Import Bank Regional
Office in Uganda (implementation) Bill,
2018,” he said, adding that the bank is going
to promote sustainable socio-economic
development in the region, with Uganda
being unexceptional.
He said Afreximbank is also expected to
provide finance to export projects mainly in
manufacturing, mining, infrastructure and
related ventures.
The bank has in the past 25 years regis-
tered a rapid growth in membership, rising
from 36 to 50 countries including Uganda.
The new member countries that joined
the bank include; Chad, Sao Tome and Prin-
cipe, Togo, Djibouti, Burundi, Madagascar,
Commoros, Eritrea, Central Africa Republic
and Equatorial Quinea.
Last year, South Africa became a share-
holding country through its Export Credit
Insurance Corporation.
The bank has also seen a record growth
in shareholding, with significant equity
injections from both existing and new share-
holders.
From outside Africa, the Russian govern-
ment made a strategic decision to expand
its economic relations with Africa through
equity participation in the Bank in Decem-
ber last year. Russia joins China and India
as countries with shareholdings in Afrex-
imbank.
Industrialisation Agenda
Currently, the bank is aggressively pursu-
ing a number of initiatives, under its Indus-
trialization Strategy to create industrial
capacities and boost value added export
production, particularly for African mar-
kets, including creation of industrial parks
and special economic zones, with projects
valued at US$2bn already underway in
Gabon, Ivory Coast, Togo and Nigeria, and
plans for Rwanda, Malawi and Chad near
approval stages.
Meanwhile, the Cairo-based bank record-
ed a 25 % growth in revenues to reach $645
million last year, driven by healthy interest
income on average assets of about $14 bil-
lion, of which about 70 per cent was loans
and advances.
The net income as a result rose by 34 %
to reach a new record of $220 million. Simi-
larly, the bank’s liquidity remained strong,
with cash and due from banks reaching $3.2
billion, up 153 % from $1.3 billion in 2016,
while liquidity cover ratio was 185%, above
the target of 105%.
Consequently, the bank’s Board of Direc-
tors have proposed a dividend pay-out of
$57.53 million to shareholders, represent-
ing a 51 % increase on the $37.96 million
declared in the previous year, according to
Ndagijimana Uzziel, Chairman of the Gen-
eral Meeting of Shareholders and Minister
of Finance of Rwanda.

New ferry to boost regional
trade and cooperation
MV Albert Nile 1 will ply shorter route
connecting West Nile and DR Congo
By Ian Katusiime
R
esidents of Buliisa and other Ugan-
dans in the Albertine region have
reason to smile, thanks to the new
MV Albert Nile 1 ferry that Uganda
National Roads Authority (UNRA) commis-
sioned on July 13 in a colourful ceremony
that also doubled as the official launch of
UNRA’s 10 year anniversary.
Monica Azuba Ntege, the minister of
Works and Transport commissioned the
ferry that carries up to 250 passengers and
over 20 vehicles.
Ntege lauded UNRA for MV Albert Nile
1 that will ply the route from Wanseko land-
ing site, Buliisa District to Panyimur, Pak-
wach District for slightly over one hour.
UNRA Executive Director, Allen Kagina,
said the MV Albert Nile was a testament to
the efficiency of the roads agency that has
been empowered to do work that was pre-
viously considered political.
To highlight the role of UNRA, Kagina
MV Albert Nile 1 at Wanseko landing site, Buliisa.   INDEPENDENT/ IAN KATUSIIME
traced the transport sector of Uganda to
1896 during the time of the Uganda-Kenya
Railway in the colonial era saying the eco-
nomic development of the country was con-
centrated on the railway corridor.
She told the gathering of over 300 aboard
MV Albert Nile 1 that 13,000 tonnes of
maize was being moved across Ugandan
roads from Burundi, something that has
been enabled by the efficiency of UNRA.
“We are spending lots of trillions on
roads, therefore the thinking around invest-
ment infrastructure must change,” she said,
adding that the vision of UNRA is to be the
leading catalyst for national development.
Reuben Byaruhanga Tumwebaze, UNRA
Director Roads Infrastructure Protection,
said the new route is 9km, a reduced travel
distance from the old one that covered
20km and lasted more than two hours. The
Shs8billion facility will include a maternal
ward to enable expectant mothers deliver
on the facility. Aboard the ferry, stewards
carried out demonstrations of wearing life
Business
jackets in case of emergencies. Albert Nile
1 means Uganda has 13 ferries, with UNRA
running 11 of them.
The LC V Chairperson of Buliisa, Simon
Agaba Kinene hailed the ferry service say-
ing it would act as a continuous road from
Kampala up to the Democratic Republic of
Congo and thus fostering regional trade,
cooperation and improved relations.
The function was attended by Buliisa resi-
dents, Buliisa Woman MP Norah Bigirwa,
George Wilsoon Nsamba who represented
the Parliamentary Committee on Physical
Infrastructure, Uganda Road Fund Execu-
tive Director Moses Odongo, UNRA Board
Chairman Fred Omach and UNRA staff.
Others were members of Uganda Insti-
tute of Professional Engineers (UIPE), min-
istry of works officials, Buliisa and Pakwach
RDCs and the newly elected LC 1 chairman
of Wanseko.
The commissioning of MV Albert
Nile 1 was the launch of the celebrations
of UNRA’s ten year journey but events
marking this milestone will go on for six
months. This includes opening of the
New Nile Bridge, groundbreaking for
road upgrades and other road related
development functions.
July 20 - 26, 2018 29
 Executive Style
‘UNBS on the right truck
in setting standards’
How does a country like
Uganda benefit from your
I
visit?
t is important for me to be
connected on the ground.
I came here to share ideas
and views regarding
standards with members of
the business community. I
am also here to engage with
relevant government officials
that are responsible for imple-
menting standards that relate
with the day-to-day activi-
ties of trade and people. We
normally want to understand
the problems of members so
that we are able to respond to
their needs such as capacity
building for implementing
standards.
What are the latest standards
that you have come up with
and how have they been re-
ceived by countries?
We have over 160 National
Standards Bodies that are
members of ISO including the
Uganda National Bureau of
Standards (UNBS). Our work
supports efforts towards pro-
tecting consumers and growing
businesses. We recently came
up with ISO 45,000 standard
- on occupational health and
safety. We know that every day
over 7,000 people die because
of accidents related to health
and safety at work places.
Occupational health and safety
take into account other Inter-
national Standards for the Inter-
national Labour Organization’s
ILO-OSH Guidelines.
What is your advice to coun-
tries that are struggling to
maintain high standards for
the various goods and ser-
vices?
A standard is an invitation
for excellence. All countries
should actively participate in
the development of interna-
tional standards. Standards
support economic and social
development. Standards help
countries to have their goods
30 July 20 - 26, 2018
accepted across the markets
globally. Standards can also
reduce barriers to trade and in
opening new markets. For busi-
nesses, maintaining high stan-
dards would help in improving
competitive advantage and
to increase customer satisfac-
tion. I am told UNBS has 3000
standards and around 2000 are
ISO related standards. These
can shape industries; they give
companies a voice and they
help in writing the future.
From your observation how
does Uganda fare in this area?
I spent time with UNBS staff
and I can recognize efforts that
have been done in the last few
years. Uganda is definitely on
the right track. My recommen-
dation is for Uganda to build a
national strategy for standard-
ization and to increase the level
of participation in international
committees so you can shape
the standards being made and
respond to the actual needs of
Uganda.
How are you helping coun-
tries to build capacity in the
area of standards?
Building capacity of our
members is a key component
Sergio Mujica
is the Secretary
General for the
International
Organization for
Standardization
(ISO). He
spoke to The
Independent’s
Julius Businge
during his visit
to Uganda
from July
12-13 meeting
manufacturers
and a section
of government
executives.
of ISO’s strategic plan. We like
having members that can deliv-
er at national and international
level. It is necessary to create
standards which need strong
members who would help us
to be effective. Our strategy is
a cycle, where we first identify
the needs of individual mem-
bers, then develop an action
plan and deliver the training.
From a general perspective,
how are your standards feed-
ing into international trade?
Standards boost export num-
bers. At the same time we can
protect consumers globally.
You need to build trust and
make sure your products are
well recognised.
How should countries with
limited national budget boost
spending on standards bod-
ies for the latter to hit their
targets?
To implement standards
many times, it is government
money that supports specific
programs and events. There are
also international organizations
and donors that have that kind
of activity. But also, we at ISO
engage with some international
donor countries that have that
kind of support. Countries
like Uganda can take advan-
tage of this opportunity.
Uganda is investing heav-
ily in development projects
for long term targets. How
should government go
about standards in this
area?
Infrastructure standards
help a lot in spearheading
economic growth. At ISO, we
have over 250 infrastructure
related standards which
Uganda has a chance to use
through UNBS. In the ser-
vices sector, ISO has over 700
standards which can also be
used. We also have several
standards that can improve
production in the agriculture
and energy sectors.
Any challenges that ISO faces
globally…
The main challenge that we
all face is to make sure that we
fully understand the market
and the government needs.
And also to be able to anticipate
what is going to happen in the
future by building on what we
have at the moment. We are
trying to engage with universi-
ties to explore the new areas of
innovation.
From a management perspec-
tive, how do you spearhead
ISO work to achieve its core
objectives?
We are a small family. We
believe that coordination, team-
work, and trust in whatever
that we do as ISO helps us to
respond to the needs of our
members.
What is your reading about
the future of new standards of
goods and services in the com-
ing few years?
We are seeing and continue
to see the emergency of internet
of things, smart cities, block
chain technologies and aged
societies. All these will require
innovations.

Cooperatives
BCU members petition ministry of trade
T
he current Board of Directors of
Bugisu Cooperative Union (BCU)
headed by Budadiri County West
Member of Parliament, Nandala
Mafabi could be in trouble following a peti-
tion handed over to the Commissioner for
Cooperative Movement in the Ministry of
Trade calling for quick dissolution of the
current Board whose term expired in March
this year. BCU was established in July 1954
mainly consisting of coffee farmers. It has a
total of 525 member societies but only 274
are active according to Paul Mugoya, the
Chairperson of BCU Elders Forum. Accord-
ing to the petition, submitted on July 11 by
csr
WFP receives food
relief from Korea
O
n July 13, The United Nations
World Food Programme (WFP)
welcomed a contribution
of 5,000 metric tons of rice
from the Government of the Republic
of Korea. The contribution, according
to a notice from WFP will enable WFP
to meet the minimum food needs of
420,000 refugees in seven settlements
in Uganda for the entire month of
August. “WFP is extremely grateful to
the Republic of Korea for its first ever
contribution to our humanitarian work
among refugees in Uganda,” said WFP
Country Director El-Khidir Daloum,
as he received the contribution at the
WFP warehouse in Tororo, in eastern
Uganda. He said the Republic of Korea
is a valued partner in WFP’s efforts to
address hunger and malnutrition in
support of Uganda’s refugee policy. The
South Korean Ambassador to Uganda,
His Excellency Kim You-churl, stated
that ending hunger was a priority of
the Government and the people of
Korea.WFP will distribute the rice in
the settlements of Nakivale, Kyangwali,
Kyaka II, Oruchinga, Palabek, Imvepi
and Rwamwanja.
20 members of the Union, the commissioner
is expected to convene a special annual
general meeting under section 22 (7) of the
cooperative societies act, cap 112 of the laws
of Uganda to among other things preside
over elections of the new Board. The term
of the current Board expired in March this
year. Mugoya told journalists that the cur-
rent Board has not submitted the audited
books of accounts for BCU’s trading year
that ended December 2017. They said that
the audited books of accounts should have
been presented to the members by March
31, 2018. Mafabi was not available to com-
ment on this matter.
Aviation
Emirates Skywards launches mobile travel app
O
n July 09, Emirates Skywards,
the loyalty programme of Emir-
ates airline announced that it had
partnered with the Entertainer
to launch its own Emirates Skywards GO
app for members. The app is a mobile travel
companion that offers members access to
CSR
Airtel rewards rising starts
Uganda Martyrs Girls celebrate with the trophy.
R
esidents of based teams competed
Kampala and in the Airtel Rising Stars
surrounding regional tournament
areas were treated held at Wankulukuku in
to an exciting weekend Rubaga, Kampala on July
when central region- 15. The games saw KJT
business
CSR
Vivo Energy promises more
on road safety campaign
F
uel distributor, Vivo Energy
Uganda has promised to
continue taking part in
campaigns geared towards
reducing road accidents in Uganda.
Speaking at the First National Road
Safety Summit organised by Vivo
Energy and NTV Uganda at Serena
Hotel on July 11, Gilbert Assi, the
MD of Vivo said “we are in this
because of the continuous loss of
lives of people. “Each life lost is a
highly valued family member; every
life matters,” Assi said. According to
the ministry of works, 3,500 deaths
were recorded for the year 2017
resulting from road related accidents
compared to 3,503 a year before. Vivo
Energy has been part of a campaign
called Tweddeko launched in
February this year aimed at curbing
road carnage. Stephen Kasiima, the
head of traffic at the Uganda Police
Force commended the company and
others for taking part in activities for
curbing road accidents.
over 4,400 2-for-1 offers at some of the best
restaurants and spas in over 20 cities. In ad-
dition, Emirates Skywards GO gives mem-
bers access to day planners, city guides and
the ability to instantly book tours and attrac-
tions in over 160 destinations. The app can
be downloaded on iOS or Android devices.
boys team defeat Spartans
1-nil and Uganda Martyrs
girls defeat Gadaffi 1 – nil
to emerge victors. The
winners received trophies,
certificates, balls, kits and
a cash prize of Shs1mn
each. The company’s
Head for Brand and
Communications, Remmie
Kisakye said the ARS
platform, over the past
five seasons, has been a
medium of talent discovery
for young stars, some of
whom have gone on to
play for different clubs
in Uganda as well as the
national team. The Airtel
Rising Stars program
started in 2001.
July 20 - 26, 2018 31
business

CNOOC to train 30 welders

for oil and gas business
By Julius Businge ing of locals.

I
n a bid to deal with the
likely shortage of skilled
Ugandans to handle oil
and gas business, CNOOC
Uganda Limited, one of the oil
companies working to drill out
3.5bn barrels of oil from the
grounds of the Albertine Gra-
ben has launched the Welders
Certification Program.
Launched on July 12 in Kam-
pala, the program is intended to
train, skill and certify Ugandans
especially those in the Albertine
Albert Nga ,GOtv Marketing Manager and Sauya Nakiyaga, MultiChoice region to benefit from the lucra-
Retention Manager addressing the media during the launch of the tive sector.
MultiChoice entertainment feast where all active DStv and GOtv customers The pilot program, accord-
will enjoy an open week of sports and entertainment channels at no extra ing to CNOOC officials, will
cost.   INDEPENDENT/JIMMY SIYA support 30 welders to attain
qualification in Shielded Metal
Arc Welding (SMAW) ISO 9606
Certification for 1G (common
for rotating pipes).
The training will last 60 days,
starting on July 12 and ending
in September 2018 at the Sun-
maker Oil and Gas Training
Institute in Bugoloobi, a Kam-
pala suburb. CNOOC will meet
the entire training cost.
Sector analysts say this pro-
gram will also benefit the com-
pany through compliance with
the National Content Regula-
tion 17 and 21 – regarding train-
The beneficiaries were picked
from technical institutions
including; Uganda Technical
College Kichwamba, St. Simon
Peter VTI, Nile Vocational Insti-
tute, Kyema UTC and Uganda
Petroleum Institute Kigumba.
Zhao Shunqiang, the presi-
dent of CNOOC Uganda, said
through the program the com-
pany aims at rewarding people
in the host communities by
enabling them to be competi-
tive in the job market.
“There are opportunities in
the upstream, midstream and
other industries associated with
oil and gas like the petrochemi-
cal industry,” Shunqiang said.
The First Lady, Janet Musev-
eni who also serves as the Min-
ister for Education and Sports
was the Chief Guest. She said
the program came at the right
time when government was
embracing technical education
to produce a workforce to drive
Uganda’s efforts for attaining
lower middle income status
by 2020. Available government
data indicate that the sector
is expected to create at least
167,000 jobs, 60% of these
will be for technicians and
craftsmen.

Sefik Bagdadioglu, Regional Director of Jumia briefing the press at their stores
on fifth street industrial area on July 11 during the announcement of their 6th
anniversary celebrations running from July 16- 26 where all their products will
be discounted between 50-75%.   INDEPENDENT/JIMMY SIYA
Weekly share price movement (July 17)
Security July 17 June 25 Movement
BATU 30,000 30000 00
BOBU 145 155 6.5
CENT 1,277 1,429 10.6
DFCU 970 870 11.5
EABL 7,574 8,211 7.8
EBL 1,792 1,870 4.2
JHL 19,451 19,300 0.8
KA 402 437 0.8
KCB 1,755 1,851 00
NIC 17 17 00
NMG 3,456 3,606 4.2
NVL 450 450 00
SBU 32 32 00
UCHM 45 55 18.1
UCL 23 21 9.5
Elvis Mulindwa (L) receives a key for the car he won in the MTN MoMo Nyabo
UMEME 350 300 16.7
Promotion from Wim Vanhelleputte the MTN Uganda CEO during the Grand
Finale on July 16.   INDEPENDENT/JIMMY SIYA ALSI -- -- --

32 July 20 - 26, 2018


By Ray W. Washburne
Engaging the world for growth in Uganda
U.S. businesses see investing in Uganda as a business
opportunity and chance to address development challenges
I
n recent years, investment in
public infrastructure, and related
momentum in the country’s
manufacturing and services
sectors, has become Uganda’s
primary catalyst of current and future
economic growth. This has been a
positive development for the country.
However, greater investments are
required to build Uganda’s human
capacity and connect the country to
external markets in order to position
Uganda to harness the opportunities
of today’s global economy. Deeper
integration will ensure that the
country’s expanding manufacturing
and services sectors, as well as its
agricultural sector, can access the
consumers, suppliers, information,
and technology that they need from
outside markets to boost sustainable
growth.
The Overseas Private Investment
Corporation (OPIC) is a U.S.
Government Agency that invests in
development projects in emerging
markets, and we are committing
to helping Uganda and all of Sub-
Saharan Africa forge deeper ties with
the world.
I have travelled to Uganda as part
of my first official tour of Africa and
reaffirming our commitment to the
continent with the launch of Connect
Africa, a new OPIC initiative that aims
to further integrate Sub-Saharan Africa
into the global trade market.
In addition to focusing investment
on transportation infrastructure
like roads, ports and airports,
Connect Africa will invest $1
billion over the next three years
in modern connectivity, including
telecommunications, technology, and
value chains to help ensure more
locally-produced products can reach
global markets.
As the U.S. Government’s
development finance institution, OPIC
recognises private sector investment
as a powerful tool of job creation and
sustainable economic development in
emerging markets. Our investments
across Africa have been highly
impactful. We’ve supported the
construction of local power plants and
water treatment facilities, and invested
in projects which have expanded the
accessibility of healthcare, education,
and financial services to underserved
communities.
Today, more than one-quarter of
our global $23 billion portfolio is
invested in projects in Sub-Saharan
Africa, many of them in Uganda.
Our investments in the country have
helped expand access to and the use
of solar energy systems, provided
high-efficiency cookstoves to low-
and middle-income populations, and
connected people in rural areas of
the country with electronic financial
services.
U.S. businesses recognise that
investing in Uganda represents both
an opportunity to address pressing
development challenges and a
promising business opportunity in an
emerging market. Through Connect
Africa, OPIC is excited to enhance
efforts to help those companies invest.
OPIC has
supported the
U.S. Power Africa
Initiative and
committed more
than $2.4 billion
to 20 projects
that will expand
access to
electricity on the
continent
comment
Just two weeks ago, OPIC committed
$100 million in financing to cellular
communications company Africell to
support the upgrade and expansion of
mobile telecommunications networks
in Uganda, as well as The Gambia,
Sierra Leone, and the Democratic
Republic of Congo.
OPIC’s Connect Africa initiative
follows several successful U.S.
Government initiatives to address
longstanding challenges through
the mobilization of private capital.
Over the past five years, OPIC has
supported the U.S. Power Africa
Initiative and committed more than
$2.4 billion to 20 projects that will
expand access to electricity on the
continent.
In March, OPIC launched the 2X
women’s Initiative to mobilise $1
billion to projects to empower the
world’s women, who are key drivers
to achieving global stability and
economic prosperity.
Now, Connect Africa will work to
enhance Africa’s role in global trade
so that both it and the world can
enjoy the exchange of more goods and
services, as well as resulting gains in
efficiency and competitiveness. In a
global economy that is more connected
than ever before, sustainable success
in Africa depends on increased
engagement with the rest of the world.
Ray W. Washburne is the President
and CEO Overseas Private Investment
Corporation which is the U.S.
Government’s development finance
institution.
July 20 - 26, 2018 33
comment
By Emmanuel Tumusiime-Mutebile
BoU had to take over Crane Bank
The bank was massively insolvent, with core capital of
negative Shs240 bn due to mismanagement and fraud
F
inancial Sector Stability:
Managing Risk in a Fast Growing
and Fast Changing Environment
– is pertinent and I want to
speak about it from the perspective of a
financial sector regulator.
The financial services industry
is evolving rapidly because of the
application of information technology
to the nature and delivery of financial
services as well as to the operations of
financial institutions.
The transformation of financial
services is also changing the risks facing
financial institutions and financial
markets. In particular, operational risks
are becoming more relevant for the
financial safety and soundness.
The regulators do not seek to
micro-manage the business of
financial institutions. We believe that
commercial principles together with
market competition, should guide the
behaviour of financial institutions.
Nevertheless, we recognise that
financial markets are neither perfect
nor free from negative externalities.
Financial institutions may take risks
which do not align with the interests
of their creditors, especially their
depositors. Also, financial systems are
vulnerable to external risks, including
through contagion, as demonstrated by
the global financial crisis of 2007-09.
As a regulator, the primary objectives
of the Bank of Uganda (BoU) are: to
protect the interests of depositors and
to ensure the overall stability of the
financial system, through prudential
regulation and supervision of deposit-
taking institutions. We seek to enhance
public confidence in the financial
system; thereby fostering financial
intermediation and limiting the harmful
effects of systemic crises.
We aim at having deposit taking
financial institutions that hold sufficient
capital buffers, so as to enable them to
absorb any losses that may be incurred.
Supervised financial institutions are
also required to implement sound
risk management frameworks. In
implementing our remit, and pursuant
34 July 20 - 26, 2018
to the Financial Institutions Act; we
take corrective action in distressed
financial institutions, in a manner that
is intended to remedy any problems
before they escalate into the loss of
depositors’ funds.
In spite of our best efforts, we must
be realistic about what prudential
regulation and supervision can feasibly
deliver in a market oriented financial
system. It is not possible for regulators
to detect all instances of fraud that may
occur in financial institutions, not least
because such frauds are often carefully
concealed from external auditors as well
as regulators.
It is also not possible for regulators
to guarantee that no bank will ever
fail, because that would require the
elimination of risk-taking by banks,
which would in turn hinder the very
purpose of financial intermediation.
Instead, regulators can ensure that
bank failures are the exception rather
than the norm; that timely interventions
in distressed banks protect depositors’
funds; and that when a systemically
important bank fails, it gets resolved
without undermining the stability of the
financial system.
I would like to explain the rationale
for, and modalities of, our intervention
The BoU has
no obligation
to bail out a
distressed
bank by
providing it
with liquidity
support
in distressed banks because this has
been the subject of criticism from some
quarters; particularly with regard to the
intervention in Crane Bank, which took
place in 2016 and early 2017.
A fundamental tenet of our prudential
regulation is the avoidance of
regulatory forbearance, which involves
the regulator allowing a bank to breach
prudential regulations or to continue
operating as normal when it cannot
meet the minimum capital adequacy
regulations. Regulatory forbearance
creates moral hazard, which worsens
the incentives for banks to be managed
in a safe and sound manner. This is
particularly pertinent in respect to a
bank’s ability to comply with capital
adequacy regulations.
Capital investment provides an
incentive to the owners of a bank to
manage it prudently, in order to protect
their interests. Higher levels of capital
help to align the interests of bank
owners and depositors for sound bank
management. Conversely, when a bank
is undercapitalised or insolvent, the
incentives facing its owners for sound
management are weakened. This is
the rationale for the prompt corrective
action provisions in the Financial
Institutions Act.
In order to protect the interests
of a distressed bank’s depositors,
the regulator has a responsibility to
intervene promptly in a bank that is
severely undercapitalised or insolvent,
and, if necessary, to take over the bank
and resolve it.
The BoU has no obligation to bail
out a distressed bank by providing
it with liquidity support, in the hope
that it will somehow be restored to
financial health. Such an option would
be extremely dangerous. It would
allow the distressed bank to continue
being mismanaged in the same manner
that caused it to become distressed,
thereby incurring further losses at the
taxpayers’ expense. It would also send a
signal to all participants in the financial
markets that mismanagement carries
no consequences for the owners and

managers of banks.
After the BoU had intervened in Crane
Bank and taken it over in October 2016,
an inventory of its assets and liabilities
was commissioned and carried out
by a reputable accounting firm. This
inventory found that Crane Bank was
massively insolvent, with core capital
of negative Shs240 billion, as a result
of mismanagement and fraud. The
notion that this bank could have been
rehabilitated by its owners - the same
people who were responsible for its
failure - if only the BoU had provided
more liquidity support and allowed
the owners to remain in control, is not
tenable.
In reality the BoU had no other
options, if it wished to minimise the
losses incurred by the bank and protect
the interests of its depositors, other than
to take over Crane Bank and resolve it.
In resolving a failed bank, the
Financial Institutions Act provides
for several resolution modalities; for
example, the failed bank can be sold
as a going concern, it can be merged
with another financial institution, it can
be subject to a purchase of assets and
assumption of liabilities transaction
(P&A) or put into liquidation.
In practice, the options are usually
more limited. Most of the banks, which
have failed in Uganda during the last
20 years, either had very little franchise
value or were too heavily insolvent to be
sold on a going concern basis or merged
with another bank. Hence in these cases,
the feasible options were a P&A or a
simple liquidation.
A P&A has the advantage of
transferring a substantial part of the
failed bank’s business, including all or
most of its deposits and parts of its loan
book, to one or more acquiring banks;
thereby minimising the disruption to
the failed bank’s customers. This is why
the BoU has used the P&A modality
on several occasions over the last two
decades in resolving failed banks, as
was the case with the resolution of
Crane Bank.
Two factors are crucial in determining
how a P&A transaction is carried out,
and in the selection by the regulator of
feasible partners, to acquire the assets
and assume the liabilities of a failed
bank.
First, an acquiring bank must have the
resources – financial, managerial, and
infrastructural – to absorb the assets
and liabilities of the failed bank quickly
and smoothly so as to avoid disruptions
to its customers. For example, a bank,
which has branches only in Kampala
cannot absorb the assets and liabilities,
and serve the customers of a failed
bank, which had a nationwide branch
network.
Second, a P&A must be organised and
implemented quickly, so that a failed
bank’s customers do not face a long wait
to access services or to ensure that the
regulator does not have to manage the
failed bank on a statutory basis for an
extended period.
I believe that a balanced and fair
evaluation of the BoU’s record of
intervention in, and resolution of,
failed banks would conclude that
these interventions and resolutions
have been successful in achieving the
primary policy objectives of prudential
regulation; to protect the interests of
depositors, and to ensure the stability of
the financial system.
Since 2010, the BoU has intervened
in five banks; closing three of them,
and taking two others into temporary
statutory management. In none of these
banks did depositors lose their money,
nor was there any danger caused to the
stability of the financial system.
The intervention in Crane Bank, was
the most difficult of these interventions
and the one which was potentially the
most problematic, because it was a
large bank of systemic importance, and
because of the huge magnitude of the
losses it had incurred.
Nevertheless, the BoU was able
to resolve Crane Bank smoothly.
It remained open under statutory
management until most of its assets and
liabilities could be transferred through a
P&A to a suitable acquiring bank, DFCU
Bank, thereby avoiding disruption to its
customers. None of its depositors lost
comment
the money.
Furthermore, despite the size of the
bank and its links with other banks
through the interbank market, there was
no contagion to the rest of the financial
system and no loss of public confidence
in bank deposits.
To conclude, the risks facing the
financial services industry in Uganda
are evolving, driven by changes in
business models, technology, and the
development of innovative financial
products.
The regulatory framework will need
to adapt to meet the challenges posed
by the changes in the risks facing the
financial sector. However, our strategic
approach remains sound. This approach
focuses on financial institutions holding
strong capital buffers and having
in place sound risk management
policies and procedures. In addition,
we will continue prompt regulatory
intervention in distressed banks.
Prof. Emmanuel Tumusiime-Mutebile is the
Governor, Bank of Uganda. He gave this
address on July 17 at the Uganda Bankers
Association (UBA) Annual Bankers’
Conference at the Kampala Serena Hotel.
July 20 - 26, 2018 35
Rise in dangerous viruses
Why humans are to blame for the infections
By Justine R. Smith & Jill Carr
T
oday, we hear about dangerous vi-
ral infections around the world on
a regular basis. Social media and
internet access may be an obvious
explanation for their seeming increase.
But it doesn’t just seem this way. The
number of viruses and the infections
they cause are truly increasing. Scientific
advances, the way humans live today and
virus biology all contribute to the rise of
36 July 20 - 26, 2018
viruses.
It seems viral infections are everywhere
these days. Starting from January 2018,
Nigeria has been experiencing an unusu-
ally large outbreak of haemorrhagic fever
caused by Lassa virus. There have been
more than 400 confirmed infections and
100 deaths to date.
The southern Indian state of Kerala is
battling an outbreak of the rare Nipah
virus, which causes severe inflammation
of the brain and claimed the lives of 14
people in May.
The Brazilian outbreak of viral yellow
fever that began in late 2017 has moved
into highly populated areas near São
Paulo and Rio de Janeiro. One-third of the
723 people with confirmed infections have
so far died from the illness.
We are no doubt more aware of such
serious diseases after the unprecedented
2014-2016 Ebola outbreak in West Africa
that claimed more than 11,000 lives. And
then the 2015-2017 Zika virus outbreak

that closely followed during which 3,500
babies were born with nervous system or
eye damage.
The first report of human virus infec-
tion was yellow fever in the U.S. army at
the turn of the 20th century. And now,
estimates suggest three to four new spe-
cies of human viruses are found each year
and around 250 human virus species are
yet to be discovered.
Discovery of a new virus today is com-
plex and requires many steps. Typically,
it involves describing its complete genetic
code with a combination of intensive
molecular sequencing work in the labora-
tory and computational analyses using
enormous reference databases.
Medical epidemiological studies (that
look at the distribution of disease) and
biological experiments are then needed
to understand any virus as a dangerous
human pathogen. It may then take some
time to link a virus with a particular
human disease.
For instance, human parechoviruses
(which can cause severe disease in young
children) were discovered in the 1950s.
But they were only identified as a cause
of disease in young children in 2004. And
relatively large Australian epidemics
since 2013 have highlighted their link to
a serious sepsis-like illness and potential
for developmental complications.
How humans contribute
Modern humans contribute to the suc-
cess of dangerous viruses. A virus repli-
cates only when inside the cell of a living
being, and spreads most efficiently when
there is contact between two individuals.
The United Nations measures current
world population growth at more than
1% per year. From the virus’ perspective,
potential incubators are increasing. The
world’s population is also urbanising,
which means people living in closer
proximity, which is conducive to spread
of a virus.
Domestic and international mass
transport permit viruses to move
between regional populations.
Many dangerous virus infections are
zoonoses, which are diseases transmit-
ted to humans from other animals. Bats
are a common culprit – one theory is
that a unique low-grade immune system
allows them to carry a relatively high
number of viruses without developing
disease. Epidemics caused by severe
acute respiratory syndrome (SARS) coro-
navirus probably began through bat-
human contact.
Expanding settlement towards wilder-
ness areas provides more opportunities
for viruses to meet people. Domesticated
livestock may carry viruses that infect
humans, and the growing human popu-
lation dictates increasing and more com-
pact livestock production.
Influenza virus infects pigs, cattle and
poultry as well as humans. The H7N9
strain that has infected more than 1,500
people in China and resulted in the
death of one-third since 2013, first moved
to humans from diseased poultry.
When it comes to numbers though,
the most important viral transporter is
the mosquito. The bite of certain Aedes
mosquitoes, for instance, is the primary
route for infection with dengue, Zika
and chikungunya viruses. Queensland is
home to these mosquitoes, so outbreaks
of dengue occur annually, usually due
to an infected traveller arriving from an
endemic region.
Research conducted in the Amazon
has linked expansion of the mosquito
range in endemic areas to deforestation
health
and low re-vegetation. Resistance to
the relatively few available insecticides
may also contribute to their population
growth.
Why viruses are sneaky
The basic biology of viruses contributes
to their capacity to cause disease. Most
human viruses replicate almost instanta-
neously and in huge numbers. As a result,
mutations arise at a high rate in the genet-
ic code of a virus. This allows the virus to
adapt quickly to an adverse environment,
such as the human immune system or
drugs. It may also allow a virus to jump
from an animal host to humans.
Some viruses establish a chronic infec-
tion, which extends the potential for
transmission. After acute illness, Ebola
virus hides for many months in parts of
the body that generate weak inflamma-
tory responses, such as the sexual organs,
the brain and/or the eye.
And although human immunodeficien-
cy virus (HIV) may cause an acute illness,
there is usually a long delay between
infection and the onset of any disease.
Consequently infected people may pass
on HIV for years before being aware that
they carry the virus.
There are no specific drugs for most
dangerous human viruses. This is in part
because viruses are a fast growing and
diverse group, with no common drug tar-
gets to exploit, as has been possible with
antibiotics for bacteria.
But another challenge relates to the
viral life cycle, which uses the infected
person’s cell machinery. Drugs that tar-
get the growth of viruses therefore have
effects on the person’s cell, which may
result in drug side effects.
Also, the capacity of a virus to adapt
implies the potential to develop resistance
to a drug. Drug treatment for HIV infec-
tion involves a combination of drugs with
different actions to address this problem.
Despite the many challenges associated
with dangerous viruses, research contin-
ues to yield even more innovative solu-
tions. The World Mosquito Program, run
out of Monash University, is one example.
This program is based on the discovery
that a safe and natural bacteria, Wolba-
chia, stops viral growth in the mosquito.
Insects in regions endemic with mosquito-
borne diseases are being infected with
Wolbachia to break the transmission
cycle.
Ultimately, the cunning strategies used
by dangerous viruses are no match for the
wide breadth of human ingenuity.
Justine R. Smith is professor of Eye & Vision
Health, Flinders University and Jill Carr is
Associate Professor, Flinders University
July 20 - 26, 2018 37
health
Uganda’s new sex education
The framework will do more harm than good
U
By Billie de Haas
ganda has
launched its
first ever guide-
line on sex
education. The
National Sexu-
ality Education Framework
2018 aims to provide a formal,
national direction for sex educa-
tion within Uganda’s schools,
ensuring that all programmes
adhere to the same approach.
The problem is that Uganda’s
society holds very traditional
values. This is reflected in the
country’s policies and laws, like
the “anti-Gay law” which came
into force in 2014 and criminal-
ises homosexuality.
As a result of this social
conservatism, the new sex edu-
cation framework is based on
religious and cultural values
that instruct abstinence only
teaching. Students are taught
the virtue of premarital absti-
nence and marital faithfulness.
They are also taught traditional
gender roles for men and wom-
en and that masturbation and
same-sex sexual relationships
are not normal.
This formalises what has
already been happening. Ugan-
da has taken an abstinence-
only approach in schools for a
long time. The framework just
makes it a matter of national
policy.
But it does not fit the reality.
Many young people are already
sexually active. We know this
from the high rate of pregnan-
cies and unsafe abortions in
the country. One of the leading
causes of death and disability
among young Ugandan wom-
en are pregnancy-related.
To understand what policies
would make more sense for the
sexual and reproductive health
of young people, I conducted
research among students and
sex education teachers in sec-
ondary schools in Kampala,
Uganda’s capital, between 2008
and 2013.
My findings confirm that
Uganda’s abstinence-only
38 July 20 - 26, 2018
approach is problematic for a
number of reasons. It limits stu-
dents’ choices and it prevents
them from trusting, accessing,
and using contraception. This in
turn puts them at a higher risk
of pregnancy, sexually trans-
mitted infections, and unsafe
abortions.
The framework also shelters
students from understand-
ing and questioning harmful
gender roles and stigmatises
students who don’t adhere
to society’s morally-accepted
norms and values.
Safe sex strategies
Uganda has incorporated
sex education into primary and
secondary schools for over 15
years. It was introduced as one
of the responses to the HIV/
AIDS epidemic, and so focused
on prevention.
The government imple-
mented a programme called
the Presidential Initiative on
AIDS Strategy for Communica-
tion to Youth. This programme
received a lot of international
criticism for only providing
the “abstinence” option to stu-
dents, as opposed to one which
teaches condoms and other
contraception use as well.
Because of this, non-govern-
mental organisations also start-
ed implementing comprehen-
sive approaches to sex educa-
tion in Ugandan schools. These
aimed to provide positive, accu-
rate and complete information
about sexuality and to include
discussions about gender, rela-
tionships, and homosexuality.
When the Ugandan govern-
ment realised that some of
these approaches were teaching
homosexuality, it decided to
launch the new framework.
But my research shows that
this could do more harm than
good. Research from elsewhere
shows that sex education pro-
grammes are more effective
when they promote contracep-
tion because it allows young
people who are not abstaining
to have safe sex. Teenagers need
complete, accurate information
to protect themselves against
unwanted pregnancies and
sexually transmitted infections,
including HIV.
Impact of policy
I conducted in-depth inter-
views, held focus group discus-
sions and observed lessons with
55 students and 40 teachers.
My findings confirm that
Uganda’s moral approach
means many students either
don’t use contraception or don’t
use it properly. This puts them
at risk of pregnancy or infec-
tion. For instance, some said
that they had learned condoms
can break easily and that hor-
monal contraception, like the
pill, can make them infertile or
have a baby with disabilities.
Many indicated that a condom
is only 99% safe and that they
cannot trust that 1%.
The findings also showed
that abstinence-only education
does not acknowledge structur-
al factors, like gender and pow-
er relations, which make young
people feel pressured to live up
to gender norms. This could
mean they become vulnerable
to unsafe sexual practices, such
as transactional sex whereby
they exchange sex in return for
money, gifts, or school fees.
As for the teachers, I found
that their personal values – and
whether they think compre-
hensive sex education is good
for the students or not – isn’t an
issue for all of them. Many felt
that they were held back by the
reality of the school system: cer-
tain content cannot be taught,
and teachers fear they may lose
their job if they deviate from the
norm.
What can be done
Because the new framework
means that morality, justified
by culture and religion, will
continue to be institutionalised
in the schools’ regulations and
curricula, teachers will con-
tinue with the abstinence-only
approach.
This presents a challenge for
those working on sex educa-
tion. They will need to think,
and work, outside the box to
ensure that young people in
countries like Uganda can enjoy
their sexual and reproductive
health and rights despite con-
servative policies.
It is possible. In 2014
Burundi adopted a national
module for comprehensive sex
education in schools which
meets international standards.
Previously, sex and sexual-
ity was a taboo subject, and,
like Uganda, contraception
was frowned upon. However,
reforms in the educational sys-
tem created opportunities to
adopt a more comprehensive
approach. This was partially
driven by Burundi’s “Vision
2025” which flags high popula-
tion growth as a barrier to long
term development. Access to
family planning was perceived
as one of the key strategies to
curb rapid growth.
Billie de Haas is Assistant
Professor of Population Studies,
University of Groningen
 ART | BOOKS | SOCIETY | TRAVEL | CULTURE
KLA ART is back!
Artists to create artworks of identity
M
By Dominic Muwanguzi
any art lovers will re-
member the twelve con-
tainers that dotted Kam-
pala city public spaces
like the Uganda Mu-
seum, the yard opposite
the Uganda Railway, National Theatre, and
Design Agenda gallery, opposite the KCCA
offices in 2012. Again in 2014, the buzz that
surrounded the boda-bodas traversing the
city with artists laden with their artworks
on the back. They caused quite a sensation
among the city dwellers, especially those
who love art. It was an opportunity to en-
gage with artists; asking them questions
and appreciating art beyond the traditional
spaces of the art galleries or museum. The
prejudice that art in Uganda is produced for
the expatriate community was finally being
dismissed, courtesy of 32⁰ East; a non-profit
institution that promotes and works with
visual artists in Uganda.
This excitement is back. After a lapse in
the festival dubbed KLA ART, the event
returns this year with more arty entertain-
ment. This year’s festival is codenamed
KLA ART 018 and will involve a number
of artists (selected) to exhibit in different
avenues around the city under the theme
“Off the Road”.
According to a press statement from
the event organisers, the artists will create
artworks on selected sites across the city
to question the idea of a record, archive,
personal and national. What stories are
defining our communal, national and per-
sonal identities? Which history is the official
history? What rumours and myths may be
changing our experience of our environ-
ments? The festival also has focus on new
media, to allow for dynamism and contrast
between a theme that deals with archives
and historical information.
The notion of exhibiting in different
avenues, as before, is to expose the public to
such historic sites as they go there to appre-
ciate the art, but also task artists to create art
that resonates with such spaces. This will
require creativity and innovation.
For example, Hellen Nabukenya who is
famous for her voluminous fabric tapestry,
`Tuwaaye’, will create her installation in
Kiyembe, a work area for city tailors. As
she installs her artwork here, she will open
up conversation on themes of communal,
national, and personal identities that are
embedded in the fabrics these artisans cre-
ate on a day to day basis.
As a norm, Nabukenya, engages women
in her practice and as they sculpt these
embroideries, they open up conversations
on issues that affect them as women and
mothers, hence the title, Tuwaaye- a word
that means conversation in Luganda lan-
guage.
Another feature of the festival will be
workshops facilitated by Newcastle Uni-
versity academic, Prof. Andrew Burton and
the London School of Economics on career
development for participants in the festival
and 32° East members. Previously, 32° East
has allowed its members- those who sub-
scribe annually, to access their fully-stocked
resource centre which has African contem-
porary and global art literature. More so,
the venue continues to provide the artist
residency programs to local, regional and
international artists.
KLA ART 018 will once again showcase
art in the public space which is a crucial
aspect of art production and display
because it bridges the gap between art-
ist, artwork, and audience. The idea is to
achieve an authentic narrative within the
artwork. Such genuine conversation has
been a springboard to the innovative work-
ing of artists like Stacey Abe, Xenson Ssen-
kaaba, and Eria Sane Nsubuga who have
participated in international art festivals.
KLA ART 018 will take place from
August 08- 31 in selected venues across
the city like Kiyembe Lane, Uganda
Museum, Ham Mukasa House and
Mayor’s Garden, Entebbe.
July 20 - 26, 2018 39
Man jumps out of moving car over argument with wife
Judge David Wilson of New South Wales acquaintance at the restaurant. At one point, braking. It was a tough case for any judge,
District Court in Australia recently heard an Cho allegedly made a critical comment but Judge Wilson ruled that, as the driver,
unusual case. about her husband’s parents and Lim the wife had a duty to protect the passenger
In December of 2012, Brian Lim and responded by telling her that he wanted a (her husband) while he was inside the
his wife, Eunkyung Cho of Australia, and divorce. Then, all of a sudden, he opened car, but the judge added that duty did not
their two children were driving home after the door of the moving car and jumped out; extend to the harm he caused on himself by
a family dinner when the spouses begun suffering “catastrophic” injuries. In a bizarre exiting the car the way he did.
arguing because Lim had spoken to an twist, he is now suing his wife for not

Man stuck with World’s most cloned dog China invents

awkward England Miracle Milly, a six-year-old
Chihuahua from Puerto Rico, was
and they so far made 49 copies
of her.
burning laser gun
World Cup win tattoo awarded the title of World’s Most
Cloned Dog, by the Guinness
Working with permission from
Milly’s owner, Venesa Semler, the
Chinese media recently
reported about a new high-
2018′ with Book of Records, after scientists in scientists want to create clones tech laser assault rifle that
two matches South Korea created a whopping of the adorable pooch to try and can allegedly fire an energy
still ahead 49 genetically-identical copies of solve the genetic mystery that beam that cannot not be
before the her. made her special. seen by the naked eye but
football final. Milly is no ordinary Chihua- Sooam uses the same 50-year- can cause “instant car-
The dad- hua. She’s held the Guinness old technology that was used to bonisation” of human tissue
of-two, 30, record for World’s Smallest Liv- clone Dolly the sheep, in 1996 from up to half a mile away.
planned to ing Dog since 2012, and scientists – nuclear transfer. Some of the Called ZKZM-500, the
add another want to know exactly what made clones live with the Semler family, laser rifle was developed by
inking of her so tiny. In August 2017, in Kissimmee, Florida and Vanes- scientists at the Xian Insti-
manager researchers from the controversial sa says they have exactly the same tute of Optics and Precision
Hadn’t Gareth Sooam Biotech Research Founda- personality and looks as Milly. Mechanics at the Chinese
Teddy Allen Southgate tion in Seoul, South Korea, started But some of the clones are slightly Academy of Sciences in
ever heard of next to the making clones of Miracle Milly larger than the original. Shaanxi province, and is a
a jinx? captain. non-lethal weapon that can
Apparently Now he is be used in various situa-
not, as he’s stuck with tions, like hostage situations,
had Harry his awkward where police would fire
Kane’s face tattoo at targets and temporarily
tattooed because disable them. This is not the
on his leg England first time that a sci-fi tech-
along with failed to nology became reality, but
the words: make it to the in this particular case, many
‘World Cup final. believe that laser rifles are
winners still impossible in real life.

Nigeria builds railway line half Scientists enter Alexander The Great’s grave
the price of Kenya’s SGR As Egyptologists prepared to Great as the tomb was not
Nigerian President Muhammadu Buhari opened open giant mystery sarcopha- grand enough. Antiques
the first phase of a new metro-rail service in Abuja, gus found where Alexander ministry officials say the
that cost the country $824 million (approximately The Great may be buried, the sarcophagus has been sealed
Ksh82.4 billion). This translates to about Ksh280 mil- question was: what will they for more than 2,000 years.
lion per kilometre, compared to Kenya’s Standard find inside? An undisturbed layer of
Gauge Railway that cost approximately Ksh560 mil- The scientists were impressed mortar sits between its lid
lion per kilometre, for rail only. by the granite in the tomb in a and the body of the coffin.
The first phase of the Abuja light rail system has 10ft-long sarcophagus, which They say it belonged to a
two lines with connections to the airport and the is evidence that it belonged to rich or noble man who lived
national rail network (3,505 km of 3 ft 6 in (1,067 mm) a wealthy man in modern Alexandria, between 323BC and 30BC. This was
gauge lines and 479 km of standard gauge lines). which is top of city Alexander the Great the time Rome seized Egypt and after
The entire metro system is being built by China Civil built. It contained a 6.5ft-high coffin and the death of Cleopatra. Some historians
Engineering and Construction Corp, partly funded a made from alabaster whose features believe Alexander’s remains could one
by loans from the Export-Import (Exim) Bank of had eroded into obscurity. day be discovered on top of the modern
China, which is providing 60 percent. It will span the But some archaeologists say it is city, which is built on the ancient settle-
entire city and will be developed in six phases. unlikely to belong to Alexander the ment he established.

40 July 20 - 26, 2018


By Independent Reporter
H
ave you ever had a stranger on
roller skates grab a part of your
vehicle as you are cruising along?
I had seen it happen to other
motorists and not thought much of it. But
when it happened to me recently, it was
quite scary. I didn’t know what to do.
I thought of speeding so that the fel-
low might let go, but what of if he fell and
injured himself or even died; would I not
be liable for his injury or death? I thought
of stopping but I feared – you never know
with these people (possibly high on some-
thing!). It is definitely something the police
need to do something about. The law ought
to make it illegal and punishable by a huge
fine or even jail.
When I researched, I found the act is
called skitching –the act of hitching a ride
by holding onto a motor vehicle while rid-
ing on a skateboard, roller skates, or bicycle.
It has other names; bumper hitching, bum-
pershining, and poggying.
Even from a casual observation, it is clear
the act is quite dangerous. Remember, the
fellow on roller skates outside the vehicle
is travelling at the speed of a vehicle; some-
thing roller skates were never designed
for. So even at very low speeds like 30kms
per hour, one can be badly injured or even
killed if they fall.
According to information online, this
will happen when the motor vehicle either
Skitiching: new
danger on the road
increases its speed or changes direction, or
when the skitcher detaches; either intention-
ally or unintentional in an uncontrolled
manner. In all these cases, it becomes clear
that when a non-motorised roller skate
intended to be self-propelled and for rec-
reational purposes at low is attached to a
speeding motor vehicle, there is danger.
The roller skater might not even know
how to deal with the unanticipated speeds
and fail to maneuver and control the roller
skates. Additionally, because the roller
skater attaches himself to the vehicle in an
unusual position; be it wheel wells, roof
racks, spare tire racks, tail lights, door han-
dles, and tow bars, the motor vehicle driver
might become confused.
So the vehicles speed, obstacles on the
road, the surface type, and the skill and
ability of the skitcher to have sufficient con-
trol of his device pose a risk; including the
potential for the skitcher to be run over by a
motor vehicle.
Because skitching is often done in traffic,
on inadequate equipment for the speeds
traveled, and sometimes without the knowl-
edge of the driver of the vehicle, there is
significant potential for injury or death. That
is why a law is required to outlaw and pun-
ish offenders.
My online research revealed that the best
way to deal with a skitcher is to slow down.
This will compel the skitcher to detach
because they want to keep moving. If they
persist, and you deem it safe, stop complete-
ly. They will inevitably leave you alone.
Also be warned that something more
serious might occur if you try something
else; for example increasing speed or driv-
ing erratically to try and extricate the skitch-
er. These actions might result in the skitcher
losing control, falling, and sustaining seri-
ous injuries. And guess what, you will be
held liable. You could even be charged with
manslaughter or killing someone using a
vehicle. The skitchers of course do not care
about some of these things. They are mainly
teenage boys high on risk hormones. They
are indifferent to their own safety. So it is
upon you, as an older person usually, to act
responsibly.
July 20 - 26, 2018 41
Profile
Medard Bitekyerezo: Born
with medicine in his blood
D
r Medard Bitekyerezo is a
medical doctor who has a
passion for good health and
better lives for all people. The
doctor turned politician is the current
board chairman of National Drug
Authority (NDA). Between 2011 and
2016, Bitekyerezo represented Mbarara
Municipality in parliament.
He says being a medical
doctor was his
42 July 20 - 26, 2018
childhood dream. And he takes pride in a good engineer.
achieving it despite being a son of two At the end of four years, he emerged
peasants. He says although his parents the fourth best student at the school and
did not study beyond primary three, they joined St Henry’s College Kitovu for
valued education and he had to work hard advanced level. He says it was school
to become the first medical doctor in his with a more relaxed environment to
village in 1998 not for pride but to give enable him concentrate but his dream
back to his community. was almost cut short as the school lacked
“My passion has always been in teachers for physics, chemistry and
assisting people and having an impactful biology. His performance could not earn
career on the lives of my people,” he him government sponsorship and yet his
says, “Serving the people of Uganda parents would not afford to pay.
fulfils me because I studied “I ended up teaching in Rubaare Girl’s
using their money for the two Secondary School for almost two years to
degrees that I acquired.” raise school fees for repeating senior five,”
He says, however, that he says
medicine “runs through “At the same time, I embarked on home
blood” in his lineage. schooling and personal teaching to prepare
His mother was a self- for a second sitting and as exams neared, I
made pediatrician applied for a study leave of four months,”
who used local herbs he says.
to treat children, and He emerged the best student at Kitunga
his grandmother was Secondary School and qualified for
a traditional birth government sponsorship at Mbarara
attendant while University of Science and Technology. In
one of his aunties 1998, Bitekyerezo graduated and started
was a nurse. All work at The AIDS Support Organisation
these indirectly (TASO) Mbarara as a medical officer. A few
influenced months later, he was recalled at Mbarara
Bitekyerezo’s University as a teaching assistant. He recalls
liking for the conducting up to seven caesarian sections
medical profession. one night at Mbarara Regional Referral
At Mbarara High Hospital’s maternity ward.
School, however, He later enrolled for a Master’s degree
he first became a and four years later, he was convinced to
favourite of many join politics. He maintains that his patients
for being good at comprised the biggest percentage of his
mathematics, physics electorate.
and chemistry. He says, “I was after service delivery
Some fellow students so being a legislator was one way of
nicknamed him achieving it”.
`engineer’ as many He lost the seat in 2016 and resumed
believed that he his professional work at Mbarara
would make Medical Specialist Clinic until he was
appointed board chairman of NDA in
2017. Bitekyerezo is the second born of the
eight children of Felistus Kabuturumba
and David Kabuturumba who is
deceased. He is married to
Dr. Dalsone Kwarisima
Bitekyerezo and
together, they have
three children.

Dr Medard Bitekyerezo’s Liteside
Any three things that we
I
don’t know about you?
am an honest man
and never tell any
lies. I am also a
charming and friendly
character, believe in
simplicity, integrity and
hate corruption with all the
passion. I can easily mingle
in any society because I am
flexible. I am not aggressive
in my home so I could
be among the simplest
husbands.
What is your idea of perfect
happiness?
I am a very happy man
if my children, wife, and
mother are happy.
What is your greatest fear?
I fear corrupt Ugandans
who shield themselves using
names of innocent people.
What is the trait you most
deplore in yourself?
Sometimes I am too open;
openness is killing me and I
am trying to work on it.
What is the trait you most
deplore in others?
Telling lies and stealing
government funds.
Which living person do you
most admire?
If there is a person whom
I admire in terms of having
a cool head, not aggressive,
a listener and doesn’t
rush to hit a person on the
head, then it is president
Museveni. Ephraim
Kamuntu is very humble and
gives fatherly advice. I also
like Prof Fredrick Kayanja
and my former headmaster
of Mbarara High School,
James Kisheiza, who was
like a father to us. We were
too notorious but he never
suspended us.
What is your greatest
extravagance?
Food for my children plus
unique buildings. If I choose
to build a house, I want it to
be unique.
What is the greatest thing
you have ever done?
I have shared what I have
with those who are lacking.
I have taken trouble to look
after my mother very well
and can attest that she lives a
better life.
What is your current state of
mind?
I am a happy man.
What do you consider the
most overrated virtue?
Politicking; we waste
a lot of time on politics
and end up neglecting
service delivery. We also
lack professionalism in the
different practices and yet
we need to be ethical to
deliver what is deserving.
What does being powerful
mean to you?
Being able to value others,
the country and everything
around us.
On what occasion do you
lie?
I never tell lies.
What do you most dislike
about your appearance?
I wear eye glasses but it’s
not a big issue.
Which living person do you
most despise?
I don’t like corrupt people.
What is the quality you
most like in a woman?
Understanding and the
ability to welcome as many
people as possible.
What is the quality you
most like in a man?
For a married man, the
ability to understand that he
married not to his sister but
someone from a different
background and protecting
his family in all ways is very
key.
What or who is the greatest
love of your life?
My mother, wife and
children all take equal
measure in terms of love. My
wife has loved my mother
like her own to the extent
that she can share secrets
with her and not with me.
My wife has also loved and
withstood my rare character
for so many years.
When and where were you
happiest?
I have never been happy
like the day I became the first
doctor in my village. I knew
that I was going to save
money and wipe poverty
out of my home. I was also
happy when my wife gave
birth to our first child in
2001. The wedding was also
very exciting although my
daughter wasn’t well.
Which talent would you
most like to have?
I have exploited all of
my talents. I used to sing a
lot but the voice has since
changed.
Where would you most like
to live?
I have never worked
anywhere else apart from
Uganda and I will still work
and live here
What do you regard as the
lowest depth of misery?
A woman being battered
by her husband. I have a
very big passion for the
life of girl children so I
wouldn’t wish any girl who
has reached the stage of
menstruation but lacks a
sanitary pad to guard herself
July 20 - 26, 2018
Q&A
advertorial
because it affects her self-
esteem.
What is your favorite
occupation?
Being a practical and
effective medical doctor that
can impact on society.
What do you most value in
your friends?
I value honesty. For
instance, I have a best man
but when I fall sick, he too
falls sick. I value honesty and
integrity in him.
Which historical figure do
you most identify with?
Gen Aronda Nyakairima;
I have interacted with very
many people but I found this
man the simplest, brilliant,
and respectful soldier in
this country. I used to
admire the late Sserwanga
Lwanga. I met him once
and was almost convinced
to join the army. There was
a man called Kesi Nganwa
in Ankole who was among
those who introduced
schooling in the region.
What is your greatest
regret?
There are two or three
people that are not happy
with my success. I thought
that if a child on a hill
succeeds, everyone would
be excited and happy but
sometimes it doesn’t go well
with some people which is
regrettable. I also regret my
father dying when I had not
even bought his a suit.
How would you like to die?
I wouldn’t want to die out
of this country.
What is your motto?
Be honest to yourself, to
those you are living with and
those that you cannot see.
43
Global comment
By Kelly Born
Solving the disinformation puzzle
Drawing the line between dangerous distortion and
vigorous political debate on conflicting views
E
ver since the November 2016 U.S.
presidential election highlighted
the vulnerability of digital channels
to purveyors of “fake news,” the
debate over how to counter disinformation
has not gone away. We have come a long
way in the eight months since Facebook,
Google, and Twitter executives appeared
before Congress to answer questions about
how Russian sources exploited their plat-
forms to influence the election. But if there
is one thing that the search for solutions has
made clear, it is that there is no silver bullet.
Instead of one comprehensive fix, what
are needed are steps that address the
problem from multiple angles. The
modern information ecosystem is like a
Rubik’s Cube, where a different move
is required to “solve” each individual
square. When it comes to digital disinfor-
mation, at least four dimensions must be
considered.
First, who is sharing the disinformation?
Disinformation spread by foreign actors
can be treated very differently – both
legally and normatively – than disinforma-
tion spread by citizens, particularly in the
United States, with its unparalleled free-
speech protections and relatively strict rules
on foreign interference.
In the U.S., less sophisticated cases of for-
eign intervention might be addressed with
a mix of natural-language processing and
geo-locating techniques to identify actors
working from outside the country. Where
platform-level changes fail, broader govern-
ment interventions, such as general sanc-
tions, could be employed.
Second, why is the disinformation being
shared? “Misinformation” – inaccurate
information that is spread unintentionally
– is quite different from disinformation or
propaganda, which are spread deliberately.
Preventing well-intentioned actors from
unwittingly sharing false information could
be addressed, at least partly, through news
literacy campaigns or fact-checking initia-
tives. Stopping bad actors from purposely
sharing such information is more compli-
cated, and depends on their specific goals.
For example, for those who are motivated
by profit – like the now-infamous Macedo-
nian teens who earned thousands of dollars
running “fake news” sites – new ad policies
that disrupt revenue models may help. But
such policies would not stop those who
share disinformation for political or social
reasons. If those actors are operating as part
44 July 20 - 26, 2018
of organised networks, interventions may
need to disrupt the entire network to be
effective.
Third, how is the disinformation being
shared? If actors are sharing content via
social media, changes to platforms’ policies
and/or government regulation could be suf-
ficient. But such changes must be specific.
For example, to stop bots from being used
to amplify content artificially, platforms
may require that users disclose their real
identities (though this would be prob-
lematic in authoritarian regimes where
anonymity protects democracy advocates).
To limit sophisticated microtargeting – the
use of consumer data and demographics
to predict individuals’ interests and behav-
iors, in order to influence their thoughts
or actions – platforms may have to change
their data-sharing and privacy policies, as
well as implement new advertising rules.
For example rather than giving advertisers
the opportunity to access 2,300 likely “Jew
Haters” for just $30, platforms should – and,
in some cases, now do – disclose the targets
of political ads, prohibit certain targeting
criteria, or limit how small a target group
may be. This is a kind of arms race. Bad
actors will quickly circumvent any changes
that digital platforms implement. New
techniques – such as using blockchain to
help authenticate original photographs –
will continually be required. But there is
little doubt that digital platforms are better
equipped to adapt their policies regularly
than government regulators are.
Yet digital platforms cannot manage
disinformation alone, not least because, by
some estimates, social media account for
only around 40% of traffic to the most egre-
gious “fake news” sites, with the other 60%
arriving “organically” or via “dark social”
(such as messaging or emails between
friends). These pathways are more difficult
to manage.
The final – and perhaps the most impor-
tant – dimension of the disinformation
puzzle is: what is being shared? Experts tend
to focus on entirely “fake” content, which is
easier to identify. But digital platforms natu-
rally have incentives to curb such content,
simply because people generally do not
want to look foolish by sharing altogether
false stories.
People do, however, like to read and
share information that aligns with their
perspectives; they like it even more if it trig-
gers strong emotions – especially outrage.
Because users engage heavily with this type
of content, digital platforms have an incen-
tive to showcase it.
Such content is not just polarising; it is
often misleading and incendiary, and there
are signs that it can undermine constructive
democratic discourse. But where is the line
between dangerous disagreement based
on distortion and vigorous political debate
driven by conflicting worldviews? And
who, if anybody, should draw it?
Even if these ethical questions were
answered, identifying problematic con-
tent at scale confronts serious practical
challenges. Many of the most worrisome
examples of disinformation have been
focused not on any particular election or
candidate, but instead on exploiting societal
divisions along, say, racial lines. And they
often are not purchased. As a result, they
would not be addressed by new rules to
regulate campaign advertising, such as the
Honest Ads Act that has been endorsed by
both Facebook and Twitter. If the solutions
to disinformation are unclear in the US, the
situation is even thornier in the international
context, where the problem is even more
decentralized and opaque – another reason
why no overarching, comprehensive solu-
tion is possible. But, while each measure
addresses only a narrow issue – improved
ad policies may solve 5% of the problem,
while different micro-targeting policies may
solve 20% – taken together, progress can be
made. The end result will be an information
environment that, while imperfect, includes
only a relatively small amount of problem-
atic content – unavoidable in democratic
societies that value free speech.
The good news is that experts will now
have access to privacy-protected data from
Facebook to help them understand (and
improve) the platform’s impact on elections
– and democracies – around the world. One
hopes that other digital platforms – such as
Google, Twitter, Reddit, and Tumblr – will
follow suit. With the right insights, and a
commitment to fundamental, if incremental,
change, the social and political impact of
digital platforms can be made safe – or
at least safer – for today’s beleaguered
democracies.
Kelly Born is a program officer for the Madison
Initiative at the William and Flora Hewlett
Foundation.
Copyright: Project Syndicate, 2018.
www.project-syndicate.org
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