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Madhvani Group Expands Its Sugar Capacity

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Madhvani Group Expands Its Sugar Capacity

Madhvani Group Expands Its Sugar Capacity

World Business Journal talks to Mayur Madhvani, Joint Managing Director, Madhvani Group of Companies, about expanding its footprint into various investment areas and plans to establish a new sugar mill in the Northern Region as it ramps up its sugar cultivation and manufacturing capacity.

What are the group’s latest developments and investment initiatives?

We’re establishing a new sugar mill in Uganda’s northern region, expanding sugar cane cultivation and manufacturing. This joint venture with the Uganda Development Corporation (UDC) will see the government holding a 49% stake. The complex will cover 30,000 hectares, including a nucleus estate for out-grower farmers. It will feature a sugar mill, a cogeneration plant for electricity, and a distillery unit for alcohol production. Initial investment for the first two phases is estimated at $150m, rising to $225-250m at full capacity. This will generate 9000 direct jobs, employ over 3000 out-grower farmers, and support ancillary service providers. The project will boost local infrastructure and business opportunities while providing the government with tax revenue and bioethanol for petrol blending.

Within our construction business, we’re currently engaged in a $4-5m project to redevelop the Source of the Nile tourist attraction in Jinja for the Ministry of Tourism, Wildlife, and Antiquities. We’re also handling housing and concrete work for a central processing facility for TotalEnergies and China National Offshore Oil (CNOOC).

Plans are underway for a new paper mill with a 200-tonne daily capacity, with an estimated investment of $15-18 m. 

This will include wastepaper and pulp recycling to produce export-quality paper. Given Uganda’s reliance on imported paper goods, this venture stands poised to address and alleviate substantial foreign exchange outflows.

How has the group navigated Uganda’s private investment landscape since its establishment?

We’re one of Uganda’s largest private sector groups, employing over 16,000 people. Since 1914, we’ve excelled in revitalising dormant companies, leading in various sectors. Our flagship enterprise, Kakira Sugar (KSL), emerged in 1985 from the revitalisation of Madhvani Sugar Works. Under our management, the Kakira Sugar Complex has flourished, with funding from the World Bank, the African Development Bank, and the Uganda Development Bank. We recently expanded our centre-pivot irrigation project to 9300 ha, one of the largest in Central Africa. 

In which sectors does the group plan to expand?

We’re exploring the potential of green steel manufacturing, utilising Uganda’s top-tier iron ore to minimise carbon footprints. We’re expanding our bioethanol production output by establishing a new sugar factory in Amuru. This complements our Kakira facility, which supports petrol blending and emission reduction efforts vital for sustaining Uganda’s transportation sector. Efforts are also ongoing to enhance our Marasa Africa Lodges, aiming to maximise the country’s tourism appeal.

Fairway Hotel Redefines Hospitality with Entertainment Offerings

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Fairway Hotel Redefines Hospitality with Entertainment Offerings

Fairway Hotel Redefines Hospitality with Entertainment Offerings

World Business Journal talks to Azhar Jaffer, Managing Director of Fairway Hotel, about the strategic adaptations the hotel has undertaken to meet evolving guest demands, expansion plans and emerging trends shaping the sector.

How has Fairway Hotel adapted to changing guest demands and industry trends recently?

We’ve withstood the test of time, recently marking our 55th anniversary. Fairway Hotel has evolved beyond the conventional hotel model, now standing as a dynamic entertainment destination. Here, guests can relax, knowing their needs are our utmost priority as our team strives to create a home-like atmosphere. With over 350 employees, we’re expanding our portfolio by adding new brands and aim to strengthen our leadership in the entertainment, food and beverage sectors, providing exceptional experiences for our clientele.

What’s the vision behind the recent expansion, including acquiring Sambiya River Lodge and Coco Beach Club?

As people seek engaging activities, we’re developing a circuit providing high-quality, family-friendly entertainment and experiences. From Entebbe to Kampala and now to Murchison Park, we aim to extend this circuit to various parts of the country, including Jinja, Fort Portal, and Mbarara. Sambiya River Lodge sits on 70 acres in the heart of Murchison Park. We are just before the turnoff to Murchison Falls and offer lunch stopovers, zip-lining, canopy walks, pools, and excellent accommodations. COCO Beach Club is a safe beachfront property with fresh fish and BBQ, comfortable seating, and great music and vibes. We are located just before the airport and host those looking for a chill environment.


What key trends do you foresee shaping Uganda’s hospitality industry’s future?

As sustainability and green tourism reshape the travel industry, Uganda is emerging as a trendsetter in Africa, aligning its policies to promote eco-friendly practices. The country provides a unique and authentic experience with diverse opportunities, ranging from birding and butterflies to gorilla treks and mountain climbing. Another major attraction that we have is the vibe of Kampala. Tourists travel for many reasons, and although animals and landscapes are major attractions, our culture, nightlife, and culinary offerings are significant contributors to the tourist experience.

What steps or measures does the hotel implement to integrate local culture into its services and offerings?

We seamlessly incorporate local culture into our services and offerings by showcasing ‘Uganda’s Finest’, spotlighting the talent of local artists and creators. Our work with the MasterCard Foundation further enhances and supports the development of the arts and crafts industry.

 

Financial Solutions Fostering Housing Affordability

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Financial Solutions Fostering Housing Affordability

Financial Solutions Fostering Housing Affordability

World Business Journal talks to Michael K. Mugabi, MD of Housing Finance Bank (HFB), about addressing housing market challenges through supply—and demand-side finance and creating novel financial instruments to help increase accessibility and inclusion. 

How is HFB addressing the gap in home ownership and providing affordable finance for the informal sector and beyond?

Our five-year strategy (2023-27) promotes home ownership and financial independence that targets youth, women, and those working in the informal sector, ensuring enhanced accessibility and inclusion in financial services. As a local bank, we provide customised solutions that surpass conventional offerings, ensuring flexibility to address unique homeownership demand and supply needs. We offer commercial rate funding to developers, increasing the availability of apartment units and providing buyers with affordable finance options to acquire units. The incremental Housing Loan/Building Solution gives loans as low as USD 100 to Ugandans in the informal sector, facilitating incremental construction without needing title deeds. This strategy addresses Uganda’s escalating housing gap, which is anticipated to expand by 300,000 units annually due to urbanisation. We actively support crucial sectors such as agriculture through the Agricultural Credit Facility, offering loans below 12%. Our engagement in oil, gas, trade, and commerce further cements our role, providing tailored and affordable financing solutions. Inclusivity is central, with partnerships with EIB and AfD supporting initiatives for women, youth, and the less privileged.

How has the bank embraced sustainability and digitalisation?

Banking is undergoing a global transformation fueled by technology. Our digital offerings, such as online account opening, agent services and internet banking, improve customer convenience and accessibility. The Online Securities Portal allow Ugandans to invest in securities and bonds for as little as UGX 100,000 (USD 26). In 2023, we initiated the process of achieving Sustainability Standards and Certification (SSCI), targeted for completion by the end of 2024. We focus on sustainable financing, environmental preservation, and tackling climate change, aiming to drive the transition towards a resilient, resource-efficient economy.

What is the primary liquidity concern currently facing the banking sector?

Accessibility challenges exist due to a shortage of long-term liquidity sources, and credit risk poses concerns, impacting liquidity and hindering loan repayments. Globally, high inflation rates affect liquidity flows, particularly in the US. Initiatives to boost oil and gas, manufacturing, and value-added coffee production are essential for exports and economic growth. Government programs like Emyooga and the Parish Development Model contribute to skill enhancement and market development, enhancing liquidity and improving economic indicators. Streamlining performance is crucial to positive outcomes.

Overcoming Challenges to Build Housing for All

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Overcoming Challenges to Build Housing for All

Overcoming Challenges to Build Housing for All

Kenneth Kaijuka, CEO of National Housing and Construction Company, talks to World Business Journal about the company’s dedication to providing affordable housing across all income levels and highlights the imperative for the real estate sector to establish a national housing authority.

What projects is NHCC currently working on?

In Mbarara city, we have completed the first phase of developing 200 units; the second phase is underway. In Nalya, ongoing projects include Jasmine Apartments, 60 units, and Nalya Pride Apartments, 502 multi-bedroom units. Our portfolio also includes commercial projects like the state-of-the-art Electoral Commission headquarters in Lweza, Lubowa, pending construction due to funding constraints. To manage water infrastructure costs in our estates, we’ve forged a ten-year collaboration with the National Water and Sewerage Corporation while actively developing the National Building Research Center in Lubowa to uphold the highest construction standards and address issues like substandard materials.

What barriers exist in the effort to promote affordable housing?

Multiple challenges hinder the development of affordable housing projects, including urban and city planning obstacles such as small landholdings, family-level planning issues, lack of zoning for market categorisation, and limited skills in rural areas. High capital costs, short tenures, and demanding collateral requirements also need improvement. The lack of government guarantees, grants, and concessional funding exacerbates the affordable housing deficit, as banks and commercial lenders show little interest in financing social housing, slum redevelopment, mass housing, and low-cost housing initiatives. The housing deficit, estimated at over 2.4 million units, might only partially represent the situation; considering standards and quality, the deficit could be around 5-7 million houses. Emphasising quality and prioritising cost-effective services such as water and energy supply is vital in addressing affordability and the housing deficit.

What role can NHCC play in revitalising Uganda’s housing sector?

To revitalise the housing sector, we must strengthen our role by providing leadership in cities and municipalities and creating opportunities for other developers. A well-regulated housing sector with proper leadership is essential for infrastructure development. We should serve as the primary vehicle for investors in government housing projects, offering incentives such as land, infrastructure services, and tax waivers. Our proven leadership in areas like Bugolobi, Lubowa, Ntinda, and others demonstrates the ability to attract developers, positioning us as a leader and risk mitigator. However, the absence of this guiding role has led to challenges in identifying prime development locations. Establishing a housing authority similar to those in other East African countries could address zoning, infrastructure planning, waste management, housing quality, technology attraction, and funding. This approach would facilitate structured housing development, supporting government access to loans for sectoral growth while mitigating informal settlements and service provision challenges.

 

Overseeing Economic and Environmental Harmony

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Overseeing Economic and Environmental Harmony

 

Overseeing Economic and Environmental Harmony

World Business Journal talks to Barirega Akankwasah, Executive Director, National Environment Management Authority (NEMA) about the significance of striking a harmonious balance between economic growth and biodiversity preservation.

What is the progress of implementing the Second National Biodiversity Strategy and Action Plan (NBSAP II)?

NBSAP II, covering until 2025, maintains its relevance with ongoing strategies in the implementation phase. Notable progress includes surpassing the global biodiversity target of 17% land protection, now standing at 18%. Moreover, the development of a finance plan under the biofeed program has further modernized biodiversity resources.

Efforts in ecosystem restoration, specifically forest and wetland rejuvenation, alongside initiatives in climate-smart agriculture and infrastructure, are in progress and anticipated to meet predetermined targets. 

Alignment between our National Biodiversity Plan and the 2022 Global Biodiversity Framework is underway, initiated through an ongoing review process. This review includes updated commitments, such as elevating protected area coverage from 17 to 30%, necessitating a reevaluation of our protected area system, particularly emphasizing wetlands and waterbodies.

Biotechnology, notably genetically modified organisms for food, and the discourse surrounding invasive species are integral considerations. Emphasis remains on ecosystem restoration, forestry, wetlands, and wildlife as key focal points.

How can the environment be incentivised, or be made profitable? 

To encourage environmentally friendly practices, incentives could be enhanced. For example, lowering prices for cooking energy sources such as LPG gas and solar options could be effective.

Similarly, alternatives to plastics, like paper packaging and reusable materials, should be promoted. Plastic usage remains a major environmental challenge. To support these changes, the government could provide incentives such as reduced taxes or tax holidays to foster environmentally conscious industries.

Currently, NEMA has introduced tax exemptions such as the 0% tax on hotel furnishings and tour vehicles in the hotel industry. Nevertheless, there’s potential for additional advancements, particularly in harnessing value from waste. This could effectively address various environmental challenges by creating resources like briquettes, organic fertilizers, and energy.

How have digital and tech advancements aided the biodiversity and conservation efforts that NEMA undertakes?

Technology plays a pivotal role in biodiversity conservation, encompassing monitoring, identification, and research. Presently, NEMA uses drones, satellite imaging, and remote sensors for wildlife species monitoring and census, along with GIS applications. Leveraging technology enables real-time responses to challenges like wildlife poaching and pollution, allowing for more effective interventions.

Exploring new advancements, such as virtual fencing, holds promise in preventing human-wildlife conflicts and managing livestock on our farms. We foresee the private sector taking the lead in investing in these technologies with the government playing a crucial role as both a consumer and a collaborator.

What are the potential risks associated with neglecting the equal importance of the environment in relation to economic priorities?

The environment deserves an equal footing alongside the economy; any imbalance risks dire consequences! While nature’s resilience is unmatched and will persist, neglecting its importance poses risks for economic progress. To achieve overall prosperity, it’s crucial for economics to collaborate harmoniously with nature, fostering mutual success and sustainable growth.

 

Elevating Raw Cotton to Value-Added Commodities

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Elevating Raw Cotton to Value-Added Commodities

Elevating Raw Cotton to Value-Added Commodities

Edwin Mwesigye, CEO, Mutuma Commercial Agencies (MCAL), talks to World Business Journal about the company’s adaptability in diversifying its production lines as it looks to 2025 and beyond by expanding with value-additive cotton products.

Can you provide an overview of Mutuma Commercial Agencies (MCAL)?

MCAL is one of the leading producers in Uganda, specializing in high-quality hospital cotton wool for medical purposes. Additionally, MCAL offers a full range of other products, including vegetable oil, cottonseed cake for animal feed, cotton husks for mushroom cultivation, and soap stock for soap production. The company employs 230 individuals and has established further collaboration with approximately 6000 farmers, with the majority of them being smallholder farmers.

What is the current capacity of the ginnery factory and how has the partnership with Uganda Development Corporation (UDC) impacted your operations?

Our ginnery factory has the capacity to produce about 20,000 bales each season, but currently, we produce around 5000 bales per season. The reason for the reduced output is the limited availability of cotton in the country. UDC has been a valuable partner, providing us with working capital and holding a 36% stake in the ginnery.

Who are your main clients, and how do you meet their specific needs? Are there any government programmes that have influenced your product offerings?

Our primary client is National Medical Stores (NMS), to which we supply cotton for medical purposes. NMS is the governmental body that has a statutory mandate for warehousing and distributing essential medicines and health supplies within Uganda.

The government has encouraged the Buy Uganda Build Uganda (BUBU) policy to reduce the reliance on imports and also, to promote local production. The BUBU policy has affected us positively, as much of the cotton that is currently being imported is of sub-standard quality.

What key factors have enabled MCAL’s diversification into various production lines, and how has this impacted the company’s growth and its relationships with local farmers?

The diversification into various production lines can be attributed to our commitment to adapt to changing market dynamics and our mission to reduce dependency on any single product line. Diversification has allowed us to tap into multiple revenue streams and mitigate risks associated with fluctuations in specific markets. Our close relationship with local farmers is a critical aspect of this strategy.

By procuring conventional cottonseed from over 6000 farmers, we not only ensure a consistent supply of raw materials, but also contribute to local agricultural development. This partnership supports smallholder farmers, as they have a reliable buyer for their cotton produce. The impact of diversification on our growth is significant, as it has helped us create more employment opportunities, supporting local communities and the economy. Furthermore, it positions us as a versatile and resilient player in the agricultural and manufacturing sectors within Uganda. Our strategy has been to adapt and expand, ensuring our long-term sustainability and contributing to the prosperity within the regions in which we operate.

What is the main challenge you face in the cotton industry?

The main challenge within the subsector is access to capital. The capital that is made available from commercial banks often makes little business sense for us. We require so-called ‘patient capital’, especially in the agriculture sector, to address this issue.

Do you have any plans to extend the factory’s capacity or diversify your product range in the near future?

Yes, we have plans to expand our factory. We intend to venture into value addition by producing cotton yarn in addition to cotton wool in the best-case scenario by 2025. Our long-term vision is to add value to the entire cotton production process and reduce the export of raw cotton.

What is your message to potential investors looking at the cotton subsector in Uganda?

The message that I would give, is as follows: If you are considering investing in the cotton subsector in Uganda, I would advise focusing on value addition rather than primary production. There is a market for value-added cotton products, and it can significantly benefit both the industry and local farmers. By investing in value addition, you can achieve higher prices for cotton and contribute to the growth and stability of the subsector.

Regulatory Revisions Energize Electricity Sector Growth

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Regulatory Revisions Energize Electricity Sector Growth

Regulatory Revisions Energize Electricity Sector Growth

Eng. Ziria Tibalwa Waako, Electricity Regulatory Authority, (ERA) CEO talks to World Business Journal about beneficial regulatory changes, improving the investment climate for renewables, and moves towards a universal clean energy access target by 2030.

What are the key revisions in the amended Electricity No. 4 Act of 2022 and the expected benefits?

A key regulation introduced royalties for renewable energy plants, extending benefits previously exclusive to hydropower installations. This move supports the green initiative aiming to involve local communities where these plants operate, fostering community ownership and encouraging their active participation in the maintenance, security, and oversight of energy facilities.

The revised law abolished the single buyer model where a sole transmission company acted as the bulk off-taker, supplier, seller, and transmission system operator. This amendment led to the separation of the transmission segment, opening up the regulatory landscape. Now, multiple public and private entities can engage across the entire electricity value chain, including generation, transmission, distribution, export, and sale.

Aligned with this transformation, the “Electricity Sale in Build to Specified Customers (Direct Purchase) Regulation, 2022” creates significant opportunities for private investors. Generation and transmission companies can now sell power directly to designated entities, including industrial parks, specialized consumers, and for export purposes. 

Additionally, clauses introduced stiffer penalties for those tampering with infrastructure. While some regulations, like net metering, have been cleared for gazetting by the Office of the Government Attorney General, they aim to integrate consumers producing power into the grid, expected to become effective by the end of January 2024

With the Ministry of Energy and Mineral Development (MEMD), we support the establishment of a planning department to streamline planning processes across the value chain. 

Concurrently, the formation of the Electricity Infrastructure Fund assists in preparing projects through feasibility studies, providing potential investors with a clearer insight into investment opportunities.

What pivotal changes has GET FiT brought to Uganda’s energy landscape?

The Global Energy Transfer Feed-in Tariff (GET FiT) has created a conducive investment climate for solar, wind, and mini-grid projects, significantly advancing our mission to provide widespread access to clean energy by enhancing the overall enabling environment for private investment in renewable energy.

It sets a benchmark not just in Uganda but across Africa and has added 158MW to the grid, with a focus primarily on renewable sources, supporting our objective to decarbonize the sector. 

What key approaches are advancing the goal of a universal clean energy access target by 2030?

Strategically, we’ve integrated grid extension with off-grid solutions, backed significantly by government initiatives and development partners including the EU and the German Federal Ministry for Economic Cooperation and Development (BMZ). With their help, we’ve subsidized capital requirements for the first set of 40 mini-grids, enhancing financial viability and making end-user tariffs more affordable for the rural communities that benefit most from these installations.

We’re committed to finding innovative solutions to the challenges mini-grids face, such as their lack of economies of scale leading to higher fixed costs and end-user tariffs. This is crucial for our target demographic, with below-average incomes, so high tariffs do not hinder the adoption of these systems.

For example, the GET. Access initiative aims to establish 1,000 mini-grids across the country, connecting over 150,000 people in 140 remote villages. Through GET. Access, developers will receive financing supported by up-front, interim, and results-based CapEx subsidies. Additionally, the project will promote the productive use of energy (PUE) by providing selected appliances, facilitated by a PUE consultant.

In collaboration with the World Bank, we are also setting up mini-grids specifically to serve rural schools, health centers, refugee camps, and vulnerable settlements.

We are convinced that a collaborative approach involving the government, private sector, and development partners is essential to balance mini-grids, solar home systems, and grid extensions effectively. This cooperation is key to achieving universal electricity access by 2030.

Investments in Palm Oil Production Pay Off

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Investments in Palm Oil Production Pay Off

Investments in Palm Oil Production Pay Off

Anoop Sharma, GM, BIDCO talks to World Business Journal about the country’s only palm plantation and achieving self-sufficiency in the vital palm oil crop. 

Can you elaborate on BIDCO’s structure and ongoing operations in Uganda?

BIDCO, a joint venture between BIDCO Africa and Wilmar International, operates under a tripartite agreement with the Government of Uganda, which holds a 10% stake.

Our strategic partnerships with the International Fund for Agricultural Development (IFAD) and the National Oil Palm Project (NOPP) are integral to the Vegetable Oil Development Project (VODP). This initiative is focused on empowering smallholder farmers and enhancing vegetable oil production in Uganda, aligning with President Museveni’s vision for sustainable palm plantation development.

As the sole palm plantation company in Uganda, we aim to double production within three to four years, reducing Uganda’s $300 million reliance on palm oil imports through domestic production. We operate in four locations: Jinja, Kalangala, Buvuma, and Sangobay.

Our operations span from upstream oil palm plantations and mills to midstream edible oil refineries and downstream consumer products. Our refineries, with a capacity of 1,500 tons, add value to upstream farming activities. Byproducts are used in manufacturing soap and cooking fat, while edible fat supports bakeries. We prioritize sustainability by recycling palm oil production waste, like fresh empty fruit bunches (EFB), as fertilizer.

In downstream operations, we distribute about 300,000 tons annually across Uganda. Our current production of 45,000 tons of crude palm oil accounts for 20% of the country’s total output.

What expansion initiatives are currently in progress?

The government agreement covers 26,500 hectares, and we’ve initiated a new plantation on Buvuma Island with 2,500 hectares planted, plus an additional 1,500 hectares contributed by small and medium farmers, totaling 4,000 hectares. Another plantation in Sangobay, near the Tanzania border, is underway, covering approximately 8,300 hectares. Palm plantations, known for sustainability, require substantial investments, with an initial cost of about $10,000 per hectare. We adhere to the principle of having a nucleus owned and managed by us, with the land belonging to the government. This model fosters a collaborative public-private enterprise, benefiting the government, the community, and us.

How has the investment journey in Uganda unfolded and are there plans to diversify beyond palm oil investments?

Investing in Uganda’s palm sector with Wilmar, the world’s largest palm farmer, offers unique opportunities. We use our funds to navigate financial challenges, avoiding high borrowing costs, and focusing on sustainability amidst global climate variability, especially rainfall variability. Despite irrigation’s high costs, the government’s offer of an additional 100,000 hectares could make Uganda self-sufficient and even support exports.

For the first time in three years, our plantations are experiencing significant growth. Positive economic signs include low inflation, a stable currency, and strong foreign reserves. Driven by Uganda’s growing economy, we’re expanding into rice cultivation, pending a proposal review by the UIA.

Upgrading and Interconnecting Transportation Infrastructure

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Upgrading and Interconnecting Transportation Infrastructure

Upgrading and Interconnecting Transportation Infrastructure

Hon. Edward Katumba Wamala, Minister of Works and Transport, talks to World Business Journal about plans for upgraded and connected transportation and infrastructure, including integrated transport plans for multimodal connectivity, along with rail and air improvements.

How has Uganda progressed in implementing an integrated transport system to enhance regional infrastructure and connectivity, aligning with its Vision 2040?

We play a crucial role in aligning with the Vision 2040 plan by focusing on establishing an integrated transport system with multimodal connectivity. This means ensuring seamless collaboration between different transportation modes such as railways, roads, waterways, and air travel, to create a cohesive and efficient transport network. Transitioning from formerly siloed sectors, we’ve moved to integrated transport infrastructure services, emphasizing the integration of diverse transport elements for improved efficiency and effectiveness. 

Uganda acts as a vital transportation hub for Congo, Rwanda, and South Sudan. To address the regional needs of East Africa, our primary focus lies in enhancing our infrastructure. We’ve secured a $301 million investment from the African Development Bank Group to revitalize the Kampala-Malaba Meter Gauge Railway (MGR). This initiative involves rehabilitating a 265km track from Malaba to Mukono, extending to Jinja and Port Bell on Lake Victoria. Despite challenges with the Standard Gauge Railway (SGR), efforts to refurbish the MGR are underway to bridge the transport gap while discussions on the SGR continue with Yapi Merkezi.

The railway rehabilitation from Malaba to Mukono, in collaboration with CRBC, is progressing. The final segment from Mukono to Kampala, using a Spanish facility, involves installing a new line with locally manufactured concrete sleepers, expected to link Kampala to Port Bell by June 2024. 

We’re also focusing on enhancing water transport, particularly through Lake Victoria’s inland waterways, aligning with efforts in Tanzania to improve transport systems from Dar es Salaam through Dodoma to Mwanza. The Kampala Flyover Project’s Phase One (Lot 1) is expected to be commissioned soon. Phase Two (Lot 2), extending from Mukwano into the city center and connecting to the railway, aims to efficiently divert traffic, providing smoother routes for commuters from Entebbe to Jinja and beyond. Designs for Lot Two are finalized, pending financial arrangements, with advanced ongoing discussions to secure support.

As part of our strategic initiatives, we’re also planning the construction of additional expressways to bolster connectivity and create opportunities for increased business activity. By leveraging a public-private partnership (PPP) model, our aim is to attract more investors and catalyze a thriving business ecosystem.

Can you provide an update on the latest developments at Entebbe Airport and in the air transportation sector in Uganda?

The expansion at Entebbe Airport is a response to soaring global demand in the airline industry. We’re currently working on multiple projects, including enlarging the runway and constructing a new terminal, which is about 45% complete and expected to be ready by July 2024. Improvements in arrival and departure lounges are also in progress and are anticipated to be completed by December 2023. Our cargo storage capacity has doubled, meeting international standards and boosting our export capabilities, particularly with fresh produce handling passing EU quality tests.

We’re at 98% completion for Kabaale International Airport in Hoima, awaiting terminal buildings and a control tower for full operation. Initially designed for oil transportation, the airport’s plan has expanded to accommodate the region’s future development, including industrial parks, tourism, and agriculture. Our goal is to transition it into an international airport, offering an alternative within Uganda, especially in case of issues at Entebbe Airport, where the current alternatives are Nairobi or Arusha.

Regarding air transportation development, Ugandan Airlines was established as a facilitator for various sectors of the economy, prioritizing tourism and trade. We’ve recently opened routes to Nigeria and Mumbai, anticipating increased tourist arrivals and expanded exports to these destinations. While we encountered initial challenges, the demand is rising, leading us to plan around three flights per week. Our aim is to transform Entebbe into a regional travel hub, and the upcoming second terminal is designed to enhance passenger comfort and streamline travel transitions. We expect improvements to the transit lounge at the old terminal by March 2024, followed by the completion of the new terminal by July 2024.

We also have plans underway for airstrip construction near tourist hubs like Kasese, Kidepo, and Kisoro, aiming to facilitate direct flights for upscale travelers across East Africa. To attract investors, we are exploring PPPs, especially in high-tourist regions like Kisoro.

How do you plan to improve safety in urban areas?

Enhancing safety in urban areas, especially regarding motorbike taxis (boda bodas), poses a challenge. While the city’s management isn’t entirely under my ministry, we’re advocating for a mass transit solution like light rail or bus rapid transit. Implementing such a system could reduce dependency on boda bodas and smaller vehicles, easing congestion during peak hours.

Microfuse Stick, the Affordable, Slimline, low Power Computer for Africa

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Microfuse Stick, the Affordable, Slimline, low Power Computer for Africa

Microfuse Stick, the Affordable, Slimline, low Power Computer for Africa    

Karugaba Ivan, Founder of Microfuse talks to World Business Journal about Microfuse Stick which drastically cuts the cost and electrical power of Windows PC-type devices and the ambition to drive technology to all communities in Africa.

What is Microfuse Stick and how does it function?

Mirofuse Stick offers the functionality of a Windows PC for just $100. Or $200 with a 19-inch monitor, and IPS, with built-in sound and a mounting system. The stick connects to the screen via HDMI, replacing the bulky CPU and cutting energy use from the usual 200W to 35W watts compared to a typical desktop’s 200W.

We created the prototype in 2016 using Raspberry Pi compute module industrial application developer platform. Progressing from starter kits to more user-specific applications, we refined our hardware design and further enhanced the prototype.

By 2017, we tackled intellectual property concerns and gained recognition by winning the  Multimedia Innovation award at a URSB competition. In 2019, we downsized our device based on user feedback, prioritizing basic computing needs in Uganda. 

Partnering with the Uganda Industry Research Institute in 2020, we launched Version 1, producing 100 units for schools and small businesses gaining crucial insights into user preferences and pricing expectations.

Around mid-2023, Version 2 debuted, featuring Windows OS and improved cooling, receiving enthusiastic feedback even before mass production began. We ramped this up to meet high demand while keeping focus on energy efficiency and ongoing product enhancements.

Is local manufacturing a part of your business strategy for these products?

Our strategy involves the gradual localization of our value chain. Currently, our focus is on local design, creating manufacturing files and bills of materials, and sourcing components from China through contract manufacturing services. 

Our current goal is to internalize processes, with a target of achieving a 40% localization rate. This includes enclosure manufacturing and packaging through injection molding and sourcing packaging locally targeting 6 to 12 months. This endeavor is supported by a government grant from Science, Technology, and Innovation (STI). We’re establishing a facility in Namanve Industrial Park, expected to reduce manufacturing costs by about 30%, aided by favorable policies like tax waiver for production inputs, contributing to overall cost reduction.

What other services does your company provide?

We specialize in product design, having crafted over 30 unique products, with six successfully transitioning to commercial phases. This ranges from addressing challenges faced by motorcycle taxi (boda boda) riders in the e-commerce industry to developing medical devices like a digital stethoscope that enhances diagnostic accuracy. 

Our focus spans education and business. In partnership with the NGO AcTogether Uganda, we’re collaborating to oversee the digitization of transaction records for over 2,700 saving groups, consolidating financial data and facilitating the transition to digital systems.

Within education, our digital platform complements our hardware, allowing students to participate in digital labs, quizzes, assessments, and access study materials, videos, and live lessons. The Global Digital Education Network, a collaboration with Madix Online Education Agency, offers schools discounted access to our hardware and platform.

How do you anticipate the next two years unfolding?

Only 9% of school-going children globally have computer access, while Africa stands at a mere 3%. This underscores the immense potential for expansion.

We foresee significant growth opportunities; expanding our product lines and market reach, aiming for an increase from 1,000 units to 100,000 units in 2024. We also plan to enter additional African markets within EAC. 

Our recent participation in the Qualcomm Make in Africa program, focused on chips and wireless communication devices gave us an eight-month mentorship under  Elliot Levine, a global technology leader and director of Worldwide Public Sector and Education at Qualcomm.

We recently got into the Africa Prize for Engineering Innovation, founded by the Royal Academy of Engineering. Africa’s biggest prize dedicated to engineering innovation, awarding commercialisation support to innovators developing scalable solutions to local challenges. We hope to use this opportunity as a stepping stone to learn, collaborate and raise needed funds.Communicating the potential of hardware innovation has been challenging, despite the rising demand for production in Africa as global labor costs shift. We must train our workforce to seize the opportunities and prepare for the sector’s growth.

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