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UTel Prioritises Customer Acquisition

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UTel Prioritises Customer Acquisition

Can you outline Utel’s ownership structure, and what changes are expected in light of its rebranding?

UTel’s ownership is structured in that the Ministry of Finance, Planning and Economic Development (MFPED) holds a majority share with a 60% stake and the Ministry of ICT and National Guidance has the remaining 40%. The decision to rebrand UTel in August 2023 was driven by the need for a distinct identity, especially in light of the acquisition of the assets of Uganda Telecom (UTL) by Uganda Telecommunications (UTCL) in February 2022. UTL executed the asset sale and purchase agreement with UTCL for Shs256.9bn ($72.6m), which eliminated any confusion between the two companies.

The primary objective of the brand unveil was to introduce the brand identity logo or UTCL’s trade name,  UTel with the tagline, ‘Your Network, Our Pride’ with an objective of creating digital access solutions that are affordable and deliver value for money to the underserved Ugandans UTel will target the Youth, the small and medium-sized enterprises (SMEs) and government ministries, departments and agencies. The company will offer a range of services with particular focus on the high-growth categories of data and financial technology (fintech) services.

What are the primary areas where the planned capital injection by the government will be allocated?

In the medium term, for sustainable growth through data services, UTel will use the Shs300bn ($80m) capital injection to build its 4G network so that it will be scaleable to 5G. This will involve a two-part strategic roll-out plan that will entail both asset building and sweating the assets.

During the asset-building stage, UTel will invest heavily in infrastructure and customer acquisition. The goal during this stage will be to revamp operations and upgrade the company’s 2G network to 4G. That said, a sizeable subscriber base is a critical asset within the telecoms sector. As part of our strategy, we will aggressively drive customer acquisition in the first part of the rollout. Owing to the large investments that are required, we anticipate that the first part of our strategy will be one that is a loss-making period for UTel.

How will you navigate a highly competitive telecoms landscape, and what strategies will you employ to meet the diverse needs of your customers?

First, we will position ourselves as a champion of consumers that drive innovation and investment to offer a clear alternative to incumbents with product-centric and quality-focused positioning. Second, we will leverage costs on effective technology as a key enabler. UTel is not limited to the 3G legacy systems, and therefore there is a focused implementation on 4G, which delivers lower costs of ownership. Lastly, we will offer friendly pricing and besides the price point, UTel will simplify its pricing to deliver a sense of fairness, integrity and transparency.

What is your vision for the future of UTel?

UTel’s vision is one in which a prosperous nation has within it, digital services that are within reach for all. Digital services are within reach if the customer can seamlessly access them in every part of the country. If the customer can afford UTel’s products and consume the products without worry of the price because consumers are receiving the proper value for their money, then we have been successful in our mission.

Pulse of Conservation: CTPH’s Health-Powered Gorilla Journey

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Pulse of Conservation: CTPH’s Health-Powered Gorilla Journey

In the 21st century, how do ecotourism and conservation efforts coexist without harming one another’s interests?

Since the early 20th century, tourism and conservation have coexisted, the link between tourism and conservation is being expanded upon and improved upon by ecotourism. Enhancing the sustainability standards, it expands on the notion of employing tourism to support conservation and vice versa. Therefore, ecotourism was designed by conservationists in the 1980s, at the dawn of sustainable development, to channel tourism revenues into support for conservation and local development. Despite ecotourism having many definitions, it has one distinct set of principles. It is an alternative to other forms of tourism development, designed to ensure a positive feedback loop between tourism and conservation while addressing both social and environmental goals.

What are the key benefits and outcomes of the Gorilla Conservation Coffee (GCC) initiative?

Conservation Through Public Health (CTPH) established GCC as a social enterprise to improve the livelihoods of the communities surrounding Bwindi Impenetrable National Park by assisting them in getting international market prices for their coffee and training them in sustainable coffee farming and households income improvement. The initiative has created an international market for smallholder coffee farmers in Bwindi which they would not have gotten, subsequently getting a premium price. GCC helps to preserve the endangered mountain gorillas by providing sustainable financing for their protection by giving farmers a viable alternative livelihood through coffee farming; which in turn reduces their need to poach and collect fuel wood taking the pressure off the gorillas and their habitats, and helping to reduce human-wildlife conflict and cross-species disease transmission among the major threats to wildlife conservation.

How has Uganda championed the causes of gorilla conservation efforts, and where is there room for improvement and reforms on a national level?

Uganda Wildlife Authority (UWA) is mandated to ensure sustainable management of wildlife resources, and has worked with partners to ensure gorilla conservation efforts, but also to educate local communities and people from all over the world about the value and benefits of protecting these endangered species, and keeping them for future generations.

Saving gorillas in the wild is a complex and difficult task, but certainly within our hands and each of us has a role to play, from policymakers down to consumers.

In partnership with UWA, CTPH has put a lot of effort in protecting all the 25 habituated gorilla groups in the Bwindi landscape from threat. First, by improving gorilla health through regular health monitoring of habituated gorilla groups; second, by improving community attitudes to gorilla and forest conservation including reducing illegal use of the forest for poaching and harvesting of timber and non-timber forest products; and third, by improving their conservation practices through promotion of clean energy where we have started with energy-saving cook stoves, soil and water conservation and sustainable agriculture. As well, CTPH has increased support for gorilla conservation both in local and international communities. For improvement and reforms at the national policy level, a lot more input is required to address the negative impact of environmental degradation and to allow citizens to be put in the best position to make a positive change to protect their habitats and environments. 

Photo by Ryoma Otsuka

As CTPH approaches its 20th anniversary in 2023, what has been the organization’s greatest achievement and its biggest setback, and how are these experiences shaping CTPH’s future direction?

After realising the need to holistically prevent and control the human/wildlife/livestock cross-species disease transmission in protected areas of Uganda, CTPH has implemented a One Health approach at Bwindi, which has been further scaled to other landscapes in Uganda and gorilla-protected areas in the Democratic Republic of the Congo.

CTPH set up one of the first One Health field programmes in the world to promote conservation and in the process has established an award-winning scalable and sustainable model of Village Health and Conservation Teams. We find that as community health and conservation practices are improving, gorillas are falling sick less often from diseases in the local communities such as scabies and giardiasis. We are also excited that this One Health has improved community attitudes to gorilla conservation because we are addressing their health, a basic human right. 

CTPH successfully launched the Policy Brief on Responsible Tourism to Great Apes at the inaugural Africa Protected Areas Congress (APAC), in Kigali in 2022. This was coauthored with International Gorilla Conservation Programme (IGCP) in collaboration with the Africa Civil Society Organizations biodiversity alliance (ACBA). The policy highlights the key challenges and threats facing Africa’s endangered great apes which include gorillas, chimpanzees and bonobos, particularly in the wake of the Covid-19 pandemic.

Photo by UNEP _Kibuuka Mukisa

We are excited to have published Walking with Gorillas, a memoir and charter about of my conservation and leadership journey shaped by One Health that came out in March 2023 and thus far, has been official launched in five countries: The US, UK, Uganda, South Africa and Kenya and also available in Canada and Rwanda and others through Amazon and other platforms.

Uganda Manufacturers Association (UMA) Driven in Commitment to Manufacturing

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Uganda Manufacturers Association (UMA) Driven in Commitment to Manufacturing

How has the role of Uganda Manufacturers Association (UMA) evolved since its establishment?

Since its inception, UMA has undergone a transformation in its role within the manufacturing sector. Initially, our primary focus was on advocacy for manufacturers’ interests and fostering a platform for networking and collaboration. Over time, our scope has significantly broadened to embrace a more comprehensive range of activities within the manufacturing sector.

Previously, the country had been a net importer of various products, from sugar and salt to soft drinks and clothing, but without value addition. UMA has played a pivotal role in championing industrialisation in Uganda since its revival in 1988, which marked a significant turning point in the country’s industrial landscape.

By the mid-1990s, exports constituted only 7% of Uganda’s GDP. Fast forward to 2022, and this figure has more than doubled to nearly 15%, with a diverse range of products now competing in regional and global markets. According to the Uganda Export Promotion Board in 2022, manufacturing exports surpassed the $1bn mark, while the tax contribution of the manufacturing sector stood at 23% of Uganda’s total tax revenue. UMA is enthusiastic about leveraging the African Continental Free Trade Area (AfCFTA) to further boost these export figures.

Today, UMA’s role extends beyond advocacy, encompassing capacity building, policy formulation and promoting sustainable practices within the industry. We are committed to driving innovation, competitiveness and responsible growth in Uganda’s manufacturing sector.

What were the key developments in Uganda’s manufacturing sector in 2023?

In 2023 the sector experienced several developments. A notable shift was observed with the increased integration of technology and automation, aimed at enhancing both productivity and product quality. There was also a significant focus on value addition, particularly within the agricultural and agro-processing subsectors. Furthermore, there has been a marked trend towards embracing environmental, social and governance (ESG) initiatives among industrialists in Uganda. Recognising the imperative to remain competitive and ensure the long-term sustainability of our industries, has made for a concerted move towards adopting sustainable business practices and comprehensive reporting mechanisms.

To what extent is Uganda prepared to capitalise on trade opportunities arising from AfCFTA?

Uganda is strategically positioned to seize the opportunities brought about by AfCFTA. The AfCFTA Agreement is set to establish a single continental market for goods and services, thereby opening up vast potential for trade expansion and economic progress. Uganda’s central location in East Africa offers a key advantage for tapping into and accessing regional markets.

Uganda’s export-to-GDP ratio stands at approximately 15%, showcasing a growth trajectory in the country’s trade landscape. Nonetheless, maximising the advantages of AfCFTA demand a robust commitment to addressing the challenges and constraints faced by cross-border trade such as the non-tariff barriers by partner states and infrastructural challenges that hamper connectivity.

How is UMA actively bridging the skills gap within the manufacturing sector?

UMA is deeply committed to addressing the skills gap in Uganda’s manufacturing sector, recognising that a skilled workforce is essential for industry growth and competitiveness. We have embarked upon several strategic initiatives, including forging partnerships with educational institutions to craft industry-relevant curricula and provide practical training programmes.

One of our significant endeavours includes collaborating with government agencies and development partners to amplify vocational and technical training opportunities. We have facilitated apprenticeships and on-the-job training programmes, ensuring that theoretical knowledge is complemented with practical skills. A highlight of our efforts is UMA’s Access to Employment project, which has successfully placed 50,000 students in various industries for internships and on-the-job training, fostering a direct link between educational institutions and the manufacturing sector. We are further encouraged that the sector created 1.61m direct or outsourced jobs that are aligned with manufacturing activities, this according to the Ministry of Gender, Labour and Social Development.

How is the green industrial revolution being advanced in your sector?

The green industrial revolution is gaining momentum within the sector, as there is a growing recognition to adopt sustainable and environmentally friendly practices. UMA is at the forefront of this transformation, actively advocating for and implementing various green initiatives.

In light of this, UMA has initiated the national Green Industrial Agenda, a strategic framework designed to unify efforts towards embracing ESG principles across the sector. The agenda has four central pillars: preserving biodiversity, reducing pollution, effectively managing waste and promoting self-regulation.

What is your outlook for the sector in the next two years?

Looking ahead, we envision a manufacturing sector that is not only thriving but also sustainable and responsible. We anticipate increased investment in renewable energy sources and energy-efficient technologies, alongside a continued focus on waste reduction and circular economy practices.

Uganda Parliament passes amendment to Petroleum Supply Bill

On Tuesday, November 14, the Parliament of Uganda passed the Petroleum Supply (Amendment) Bill, 2023, which proposes that the Uganda National Oil Company (UNOC) retain a monopoly for the import of petroleum products.

The bill says that UNOC will both import and supply automotive gasoline or diesel; automotive gasoline or super petrol; as well as Jet A-1 and dual-purpose kerosene.

As an indirect result, this will end the tender system currently in place in the country, as well as reduce Uganda’s reliance on energy imports from Kenya and Tanzania. For the former, the end of business with Uganda could result in approximately $100m in lost export earnings with respect to petroleum products.

Notwithstanding, as Uganda began to ferry fuel from the Port of Kisumu in Kenya, the move was seen a way for Kenya to become the preferred entry point in East Africa for fuel products, in direct competition with Tanzania. Now, the latest amendment to the petroleum supply bill could cause friction in Kenya-Uganda’s trade relationship for oil products, and cause the port on Lake Victoria to become less busy, and even unused.

Uganda has continued its negotiations with Tanzania for business logistics, as it aims to have in place a self-sufficient energy import system.

Uganda shipped its first fuel cargo from Kisumu in December 2022, a 4.5m L shipment of fuel aboard the MT Kabaka Mutebi II, which increased business between the two countries.

“Uganda imports 90% of its petroleum products through Kenya and 10% through Tanzania. The system currently imposes three layers of middlemen from overseas refinery to the Ugandan oil marketing companies (OMCs),” said Hon. Emmanuel Otaala, the chairperson of the Committee on Environment and Natural Resources, who present his committee’s report on the amendment during the November 14 plenary sitting.

“Each of the middlemen companies infuses a profit margin which is ultimately fed into the final pump price,” Otaala said.

The committee said that Uganda’s inability to purchase oil directly from refineries, increases mark-up on Kenyan imports, and insecurity surrounding petroleum products’ supply while already adding to unpredictable pump prices.

Parliament believes the amendment will remove dependence on Kenyan brokers, and build UNOC’s capital base as it will soon be able to negotiate fair prices for Uganda.

“Giving UNOC a monopoly is like strengthening our own child, it is for our own good that we get rid of middlemen who take the big portion of the profit,” said Hon. Stephen Baka.

Impact on oil marketing companies

Anthony Ogalo, general manager of Sustainable Energies and Petroleum Association (SEPA) appeared before Parliament’s Committee on Environment and Natural Resources and made a request on behalf of OMCs in Uganda, which are under their umbrella body, SEPA.

SEPA wanted the amendment of the bill to take into consideration a provision that would allow OMCs to import and supply special petroleum products if UNOC cannot.

“OMCs had agreed to bring higher grade petrol into the country, which could be at 95 to 98 octane rate for purposes of those who drive cars which require high rating petrol. We are asking that the bill allows OMCs to import such products when UNOC is unable,” says Ogalo.

Ogalo further asked that the amendment should allow OMCs to import other oil products excluded from the list to be supplied by government, such as specialised products.

UCDA Leads Drive to Export Ugandan Coffee to World

UCDA Leads Drive to Export Ugandan Coffee to World

 

How has coffee production in the country evolved, and what specific objectives and initiatives are included in the Uganda Coffee Roadmap 2030 that will further boost coffee production?

By FY2015/16, coffee production for 60 kg bags totalled 4.04m. At the end of FY2022/23, production of 60 kg bags had increased to 7.8m. The Coffee Roadmap, which covers the 2017-30 period, is dedicated to realising an ambitious goal of exporting 20m 60 kg bags of Ugandan coffee. This goal isn’t solely about reaching a specific volume; it centres on maximising the value derived from these 20m bags.

We’ve outlined nine key initiatives, organised into three pillars, each building upon the other. Pillar One is dedicated to creating demand and enhancing the value of Ugandan coffee. This includes collaborating with countries where we have trade deficits and know of their coffee imports. China is a significant player in this context, and the UCDA office there has been pivotal in promoting Ugandan coffee. We’re in negotiations to establish structured demand for Ugandan coffee in China and strengthen relationships with various organisations in a bid to achieve the first initiative in Pillar One. But our focus extends beyond China to emerging markets like the Middle East, which has a growing coffee culture and plenty of disposable income.

The second initiative in Pillar One aims to brand Ugandan coffee on the global stage and work on a geographical indication system to protect the uniqueness of our coffee’s taste and aroma. This second initiative, on branding, complements the third initiative, on increasing local coffee value addition. We also support primary and secondary processing for efficient coffee processing for farmers.

Pillar Two focuses on increasing production and productivity, which includes organising and promoting farmer cooperatives and expanding coffee planting areas, while Pillar Three focuses on enablers such as improved planting materials and access to finance and quality input.

How is Uganda addressing climate change’s impact on coffee farming, and what measures are being taken to promote sustainability in the coffee subsector?

Climate change has posed significant challenges to coffee farming in Uganda, resulting in unpredictable rainfall patterns, shifting seasons and rising temperatures. These changes have disrupted crop development and fruit formation. To address these issues, a comprehensive strategy is in place. Farmers are being educated in sustainable agricultural practices, with a particular emphasis on adopting drought-resistant coffee varieties. The education and training aim to enhance the resilience of coffee farming.

The National Coffee Research Institute is actively developing climate-resilient coffee varieties, making these new strains accessible to farmers. This initiative encourages the adoption of more resilient coffee crops. Collaboration with various development partners is a crucial aspect of our strategy. The EU provides grants to support farmers in transitioning to climate-resilient practices. These grants, which include subsidies and matching funds, are especially beneficial for farmers with 4-8 ha of land. This financial support helps offset initial costs and promotes environmentally friendly approaches.

The Nairobi Declaration elevated coffee to a priority status within the framework of Agenda 2063. Could you please outline the specific, tangible benefits that are expected to result from this agreement?

Our current policy direction involves the collective effort of 25 coffee-producing African countries. With nearly half of Africa’s nations engaged in coffee production, we aim to leverage our political influence and promote a commodity that has its origins in Africa. Arabica coffee is indigenous to Ethiopia, while Robusta coffee is indigenous into Uganda. Historically, coffee has moved from Africa to other countries, leading to increased production and value addition elsewhere. To address this issue, we are striving to make coffee a central focus on the African Union (AU’s) Agenda 2063. We seek to invest in value addition and use the African Continental Free Trade Area (AfCFTA) as the world’s largest trading block. By gaining political support to elevate coffee to strategic commodity status within the AU, we aim to create a specialised organisation to drive down production costs, advance research and stimulate coffee trade within Africa.

Notably, North Africa is a significant consumer of coffee, but much of this coffee is exported to Europe and then returned to Africa. We envision facilitating coffee trade within Africa with zero tariffs to keep more value within the continent. This approach will generate additional income for individual farmers and enhance the coffee subsector’s growth. Additionally, we are examining how coffee can be treated within the AfCFTA framework in countries that consume coffee. We are also exploring the possibilities of investment from institutions like the African Development Bank and the African Export-Import Bank to support the value addition of coffee production. As Africans, we should fully appreciate and consume this commodity rather than merely export it, as coffee brings not only economic benefits, but also good health.

Southern Range Nyanza Adds Value by Planning, Investing and Expanding

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Can you give us an overview of the history of Southern Range Nyanza since its founding?

Southern Range Nyanza was formerly Nyanza Textile Industries and was taken over from the government of Uganda in March 1996, after starting as a government company in 1954. Since the takeover, the company has experienced a remarkable 180-degree transformation. Today, it employs nearly 3000 Ugandans and is primarily engaged in the vertical processing of cotton and blended fabrics. 

In addition to fabric processing, the company manufactures various garments and serves local and regional markets. We have also started exporting armed forces uniforms to Equatorial Guinea. The anticipated growth in the textiles sector is closely tied to the implementation of the African Continental Free Trade Area (AfCFTA). The annual turnover of Southern Range Nyanza has reached $30m.

What has been key to the company’s transformation and how have investments ensured its success to-date?

The company’s transformation has been multi-layered. Initially, our focus was on fabric manufacturing, but we diversified our product range and expanded by establishing a garment division. We also entered the medical subsector, producing personal protective equipment (PPE), including masks and medicated cotton wool, during the Covid-19 pandemic.

Substantial investments were dedicated to modernising our machinery, positioning us as one of the most technologically advanced textile companies in East and Central Africa. We have replaced outdated equipment with cutting-edge technology from the EU and Japan, enhancing our ability to serve a broader market.

Notably, our medical division required a $6.5m investment to establish robust capacity for medical sundries manufacturing, with partial financing originating from Afreximbank. Over the past five years, our annual investments have ranged from $6.8m-10m, facilitating the acquisition of state-of-the-art machinery, including rapier weaving looms from Italy and weaving machinery from Germany.

What are the current production capacities for the garment and medical divisions, and what lies ahead for the PPE division?

In fabric production, we make 30 million metres annually. For the garment division, we produce 25,000-35,000 T-shirts and 2500-5000 sets of armed forces uniforms per day. In the medical division, we manufacture 1.5m packages, each containing 500 kg of medical cotton wool per annum, sufficient to fulfil national demand. We are aware that PPE is cyclical by demand, however, we plan to expand our PPE production across sub-Saharan Africa via the AfCFTA. This expansion is set to begin in the first quarter of 2024, and are active in discussions with various governments, with support from the government of Uganda to diversify exports.

In the future, how does the company plan to enhance value addition in the cotton subsector?

Our vision is to significantly enhance value addition within Uganda’s cotton subsector. Currently, only 10% of the cotton produced undergoes value addition, with the remaining 90% being exported as raw lint. In 2021 Uganda earned $29.1m by exporting 90% of its cotton lint. In contrast, we processed just 5% of the lint but generated $30m, highlighting the incredible potential in value addition. To capitalise on this, we’re committed to investing $30m to establish a 25,000-spindle spinning unit, which is the first step in the value chain. We anticipate beginning this project in 2024 and completing it by 2026. Once operational, this single plant will consume 30% of Uganda’s cotton lint, with an export earning potential of $17m annually.

Our perspective is that Uganda should actively attract more investors of this calibre to achieve comprehensive value addition. With 20-30% of Uganda’s cotton lint being processed by a few major investors, we can unlock the sector’s potential to reach $500m in export earnings.

How will the company utilise its strategic initiatives to grow in the next five years?

Our outlook for the next five years revolves around strategic planning and expansion. First, we are bolstering our production capacity with substantial efforts. Second, we’ve established a dedicated export division with a primary focus on expanding our African presence. Third, we are actively seeking strategic collaboration with the public sector, similar to our recent partnership in Equatorial Guinea, with plans to add three more countries to our portfolio within the next six months.

Our assessment of the future is remarkably optimistic. We aspire to become a $100m company within the next five years and aim to elevate our value addition from 5% to 30%, both of which have been progressing as planned.

Africa Global Logistics Lays Groundwork for Container Depot

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What operational benefits within Uganda are expected following the integration of Africa Global Logistics (AGL) into Mediterranean Shipping Company (MSC)?

The integration of AGL into MSC represents a significant development for us. MSC is the largest carrier globally. We had the opportunity to connect with MSC during the annual summit of the Africa CEO Forum in Abidjan in June 2023. MSC is quite enthusiastic about opportunities in Africa, and we were viewed as a partner with the best infrastructure and knowledge of Africa to assist them with their growth plans across the continent.

The integration was not a sign of weakness by AGL, rather a strategic move to enhance our capabilities. We anticipate that one of the primary advantages will be access to MSC’s extensive resources. We will be able to tap into their global network, financial strength and infrastructure, undoubtedly boosting our Ugandan operations and throughout Africa. Moreover, we see great potential in connecting Africa with Asia, Europe and the US, which opens up new horizons for logistics across continents.

AGL retains its independence, giving us the flexibility to work with various partners like CMA CMG Group, Maersk and others. AGL even operates depots for carriers such as Ocean Network Express (ONE), Hapag-Lloyd and WEC Lines. This flexibility allows us to cater to a diverse range of customer needs. Integration provides a robust framework for delivering efficient logistics solutions, which will be a significant boon for AGL’s operations in Uganda and beyond.

What recent developments and investments has AGL made?

Our recent investments include the construction of a 10-acre facility with 10,000 sq metres of warehousing and a capacity to store over 650 twenty-foot equivalent units (TEUs). Located in Namanve, the facility is strategically located near major coffee exporters in the Central region of Uganda. The location allows us to be closer to our clients, particularly in the coffee export subsector, where demand for logistics services is high.

Additionally, we have acquired 25 new trucks and trailers to strengthen our presence in the oil and gas sector. These investments are significant, both in terms of infrastructure and fleet expansion. The total investment for these projects, including equipment and training is approximately €2m. We are dedicated to modernising our operations and improving our logistics capabilities.

We have already started working on our new inland container depot (ICD) in Namanve, with phase one focusing on laying the groundwork. Phase one is expected to be completed by November 2023, and phase two will involve preparing the yard for container reception and constructing the warehouse. We anticipate phase two to be completed by the end of 2024, possibly early 2025. The estimated projected investment for the new ICD is €8m-10m. Lastly, we are investing in renovating our office to create a more engaging and collaborative work environment, with the aim of boosting employee satisfaction and productivity.

Which specific sectors are you planning to prioritise in the future?

Currently, our company maintains a dual focus, operating within both the oil and gas sector and the traditional business sector. To streamline our operations, we have established a subsidiary, Integrated Logistics Services Tilenga, dedicated to managing ongoing oil and gas projects. While we are committed to the success of this sector, we also recognise the fundamental importance of our traditional business. 

Our traditional business serves as the foundation of our organisation, covering essential operational costs and generating additional profits, while the oil and gas sector represents an exciting growth opportunity. We are actively reinforcing our sales team and expanding our workforce to ensure the continued development and prosperity of both sectors.

What’s the future outlook for AGL’s operations in Uganda over the next 2-3 years?

I see AGL Uganda making significant progress. Over the next 2-3 years, our operations will continue to improve. We anticipate implementing better systems, introducing new developments, and enhancing our customer service. Given the dynamic nature of the business environment, we understand the need to remain flexible and prepared for sudden changes, such as blockages or strikes. By investing in our teams and providing them with the right tools and environment, we are confident that we will achieve our growth goals. Specifically, we aim to increase our market share from 6% currently to reach 8% or 10% within the next two years.

National Enterprise Corporation (NEC) Drafts Plan for T6 Industrial Park

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Lt. Gen. James Mugira, Managing Director, National Enterprise Corporation (NEC), talks to World Business Journal about NEC’s new initiatives, including a draft masterplan for an industrial park at Kakooge, and the construction of its one-of-a-kind electronic-waste facility in Kampala.

“We are proud to introduce our innovative electronic-waste facility in Kampala, a one-of-a-kind initiative in East Africa.

Lt. Gen. James Mugira

Managing Director, National Enterprise Corporation (NEC)

Could you provide an overview of the National Enterprise Corporation (NEC)?

The NEC is the commercial arm of Uganda Peoples’ Defence Forces (UPDF) and was established by the NEC Act, 1989 (Chapter 312). It operates as a holding company overseeing subsidiaries such as Luwero Industries, NEC Construction, Works and Engineering, NEC Agro SMC, NEC Farm Katonga and NEC Uzima. We have recently expanded our portfolio to include NEC Security Services.

NEC has strategic joint ventures with Kyoga Dynamics, NEC Pro Heli International Services, Bosasy Luwero and NEC-Streit (U), to address both military and civilian needs effectively. NEC also plays a pivotal role in fostering economic growth, innovation and national security within Uganda.

In what projects is NEC involved within various sectors and how are these projects contributing to Uganda’s development?

First, NEC, through Luwero Industries, is deeply committed to contributing to national security by fulfilling its obligation within the realm of the country’s defense industries. Second, NEC is committed to Uganda’s food security agenda, in which we play a central role in enhancing food accessibility, affordability and nutritional quality in Uganda. This includes our exclusive provision of maize meal to UPDF; our efforts in staple food cultivation on 20.7 sq kilometres on NEC farms; and our collaboration with the Egyptian Armed Forces to enhance livestock conditioning.

Additionally, NEC is the largest supplier of fertiliser for Uganda’s Multisectoral Food Security and Nutrition Project (UMFSNP). We are investing in advanced post-harvest handling systems and state-of-the-art grain storage silos that will be available in Bweyale in the midwestern part of the country.

In the construction sector, we are contributing to the government’s strategy to establish a competitive state construction company. We have been entrusted with constructing the Kiira Vehicle Plant, a groundbreaking project. Additionally, we are involved in road and railway projects in partnership with Uganda National Roads Authority (UNRA).

In the oil and gas sector, we have established a strategic joint venture with China Oil HBP Group. Together, we have commenced the construction of a cutting-edge waste management plant for CNOOC in Kikuube District, with an anticipated completion date set for 2025. Additionally, we are proud to introduce our innovative electronic-waste facility in Kampala, a one-of-a-kind initiative in East Africa. The already operational facility targets responsible e-waste collection and management.

Can you provide an update on plans for establishing an industrial and business park in Kakooge?

The industrial park project is an exciting development for us. We have acquired approximately 2.6 sq kilometres in Kakooge, around 100 km along the Kampala-Gulu highway, and will be known as the T6 Industrial Park.

We have already taken important steps in its planning. We have developed a draft masterplan, which divides the park into five sectors: heavy manufacturing, light manufacturing, garments, agriculture processing and medical industries. Over 4000 sq metres of land have been allocated to the Ministry of Science, Technology and Innovation for the establishment of a vaccine production facility.

Currently, we are in the process of engaging with various stakeholders and mobilising resources with the goal of commencing construction in the current FY2023/24. We are actively working with relevant authorities on infrastructure requirements such as roads, water and power. Furthermore, we are exploring potential partnerships with foreign investors to support this project.

What will NEC’s role be in the next 3-5 years?

As a government entity with commercial objectives, our strategic direction is intricately tied to the government’s goals, notably Uganda Vision 2040, which seeks to elevate Uganda to a middle-income country by 2040. Over the ensuing 3-5 years, our primary focus remains aligned with the Third National Development Plan (NDPIII). As a state-owned corporation, our activities and vision are steadfastly guided by these political and economic directives.

Within the defence industries, our commitment extends to championing research and development and technology initiatives that bolster the capabilities of the National Army. We continuously monitor global advances in military technology, striving to adapt and innovate for the benefit of our armed forces.

Furthermore, we are deeply invested in augmenting value across various sectors, with a particular focus on enhancing food security. Within the food sector, we are pursuing initiatives to elevate food processing and value addition, fortifying the food security landscape. This strategic approach entails exploring avenues for value addition to agricultural products.

Uganda Addresses Integration on World Stage

World Business Journal was in New York City for the 78th session of the UN General Assembly General Debate, and Vice President Jessica Alupo of Uganda’s address where she spoke about female empowerment, South-South cooperation and Kampala’s plans to host the G77 Third South Summit in January 2024.

“We remain actively involved in regional initiatives, particularly those under the AU, the Intergovernmental Authority on Development, EAC [and] the International Conference on the Great Lakes Region.”
Vice President Jessica Alupo of Uganda UNGA General Debate, September 21, 2023

At the 78th session of the UN General Assembly (UNGA) General Debate in New York City, US, in the afternoon session of September 21, 2023, Vice President Jessica Alupo of Uganda gave the country’s address. The theme for the 2023 UNGA General Debate was, “Rebuilding trust and reigniting global solidarity: Accelerating action on the 2030 Agenda and its Sustainable Development Goals (SDGs) towards peace, prosperity, progress and sustainability for all”. This year’s forum was the first in four years absent any Covid-19 pandemic restrictions or mandates in place.

VP Alupo had also addressed the august 193-member body at the UN headquarters in New York in September 2022, while President Yoweri Museveni gave the country’s address via a remote video-link in 2021, as Covid-19 travel restrictions were still in place in the US, Uganda and across the world. The previous year, in 2020, world leaders did not travel to New York because of the pandemic, and Uganda’s deputy permanent representative of the UN gave the country’s address on behalf of the head of state.

During the address, VP Alupo reaffirmed Uganda’s position on regional integration, and touching upon the UNGA’s theme, the country’s steadfast commitment to global solidarity.
“We remain actively involved in regional initiatives, particularly those under the African Union (AU), the Intergovernmental Authority on Development (IGAD), East African Community (EAC) [and] the International Conference on the Great Lakes Region (ICGLR),” Alupo said.

With proper trading under the African Continental Free Trade Area (AfCFTA) beginning on January 1, 2021, Uganda has signalled its interest in March 2023 that it is also ready to start trading under the second phase of the AfCFTA’s Guided Trade Initiative (GTI). The country will look to increase its market penetration beyond the EAC, while full adoption of the GTI poises Uganda to also ramp up its market share in African markets outside the Common Market for Eastern and Southern Africa (COMESA).

Uganda would join its EAC counterparts, Kenya and Rwanda in the GTI, as intra-African trade is expected to increase significantly in a key sector for Uganda’s growth, namely manufacturing, but also address the involvement of one-half of the population in its economy, women.

“With the creation of the AfCFTA, women will participate in cross-border trade within the AfCFTA countries. However, work still needs to be done in Uganda to achieve full gender equality,” Alupo said in her UN address. “We are currently promoting value addition, value chain and public procurement from the various Uganda Women Entrepreneurship programmes.” “On economic empowerment, Uganda has embarked [upon] poverty alleviation programmes which target women and youth participation in the economy.”

While the AfCFTA establishes a preferential trade arrangement by eliminating trade barriers and boosting intra-Africa trade in the form of a free trade area, the GTI will test the operational, institutional, legal and trade policy environment under the AfCFTA agreement.
Uganda is the incoming chair of the Non-Aligned Movement (NAM) and will host the NAM’s heads of state and government at the 19th NAM Summit in Kampala from January 15-20, 2024, where it will closely work with other NAM countries to strengthen the organisation.

The following week, Kampala will again play hosts, for the Third South Summit, where it welcomes leaders of the G77 plus China from January 21-23, as it continues to support strengthening of South-South cooperation and triangular cooperation as well as North-South cooperation within the auspices of the UN.

Click here to see Vice President Jessica Alupo’s 78th UNGA General Debate address.

Pearl Marina: A New Vision for Living Rising on the Shoreline of Lake Victoria

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Pearl Marina Estates, sited on the Garuga Peninsula, Lake Victoria in Entebbe, is an ambitious mixed-use development which developer, Centum Real Estate, says represents “a monumental leap forward for Uganda’s real estate sector.”

The project, covering nearly 400 acres, is being created with more than 3 km of lakefront views and is located 22 km from Entebbe International Airport and 32 km from Kampala. 

The sleek masterplan shows a wide variety of residential types, a marina, and ample peripheral service buildings, all curving around the peninsula. 

When finished, the Marina will encompass a variety of housing options from around $34,000 dollars for a studio  through three-bedroom bungalows at $280,000 to $330,000 for four-bedroom villas with a maid’s room. Everything is to be integrated into recreational, social and retail facilities. 

Residents will have access to such facilities as, landscaped gardens, swimming pools, clubhouse, a beach, the lakeside boardwalk and beach club within the Pearl Marina Estate.

“Our vision is to craft a sustainable city that allures both residents and businesses,” says Raphael Nyamai, the General Manager of Centum Real Estate. 

The company is a subsidiary of East Africa’s largest publicly listed investment company and the region’s biggest developer of housing and commercial projects.

Phase 1 of Pearl Marina was completed this year (2023), bringing 400 housing units and vital infrastructure components onstream on an investment of $50 million.

Centum is making plans for everything Pearl Marina residents need for contemporary living without leaving the shorefront community. 

The vision will be continued in Phase 2, for which it is seeking strategic investment in services. It emphasises Uganda’s steady economic growth and opportunity for investors wanting to benefit from government investment in the oil and gas industry. 

“We welcome investors captivated by residential properties, ranging from cosy one-bedroom units to spacious villas,” says Nyamai. “Additionally, we invite investments for office spaces, shopping centres, hotels, resorts, and logistics and warehousing zones. For those keen on crafting their dream homes, we offer residential plots within the master plan’s guidelines.”

Centum reserved more than 100 acres for an investment park to include light industry, dry warehousing, cold storage, a logistics hub as well as a business park. 

Between 3-5 acres are set aside for a phased shopping centre for essential services and to provide employment. 

In the longer term, Centum also has space for a 250-bed hospital and is in discussion with an international hospital operator which may want to build services to accommodate medical tourism such as neurology, renal and cardiovascular sciences. 

Meanwhile, a further 3-5 acres are reserved for a five-star hotel and school. The nearest comparable private teaching institution is some 20km away. 

Nyamai states, “The Pearl Marina Project signifies a monumental leap forward for Uganda’s real estate sector. It embraces a comprehensive approach to urban development, harmoniously blending residential and commercial zones within the masterplan.”

The impact of this project on the surrounding community has already been profound. Since its inception, the Pearl Marina Project has propelled a surge in property values, transforming the Garuga area into one of the most coveted residential suburbs in the bustling Kampala Metropolitan region.

“Pearl Marina has also emerged as a major employment hub, drawing over 90% of construction workers from the local neighbourhood,” Nyamai says. “At the peak of Phase One construction, more than 1,200 workers were directly or indirectly involved, engaged through contractors and subcontractors.”

Phase Two will have an even greater impact on local employment opportunities, the developer says.

In summary, according to Nyamai, Pearl Marina Estates attempts to transcend the conventional realm of real estate projects. 

“Pearl Marina is not just a real estate project; it’s a visionary lifestyle concept, a unique development in Uganda, promising to redefine urban living, foster sustainable growth, and enrich the lives of both residents and the wider community.”