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30 June 2008

Trade Facilitation through Export Promotion

The PSFU (Private Sector Foundation Uganda) & MTN Trade Facilitation Exhibition on Friday 27 June 2008 was, I must confess, an illustrious success though I came in late from Kampala Town around noon. With stalls on almost one half plus on the long ends of the North Western Exhibition Hall at Lugogo Show Grounds, a large area was set aside for listeners to sit and you could see that the exhibition was well attended. A minister from Rwanda was speaking when I made my entrance. An apology was made by the MC about the absence of one of the panelists who had to go to the airport earlier than scheduled for checking before a voyage out of the country that evening. I expected PSFU chairman James Mulwana to be there, but didn’t see him. Could he have been the one mentioned? Executive Director Gabriel Hatega was there.

Anyway, after the minister, Richard Kamajugo a URA Commissioner [AC – Trade] on behalf of Allen Kagina started by conveying the Commissioner General’s remarks; personally I think she’s always brilliant and considerate to tax payers, you know, the aura of motherly love makes her great. I do not know much about her white predecessor but call Kagina the “Customs Mama”. Please don’t tell her daughter Mitchel that Aiko said so…Her words conveyed by Commissioner Kamajugo were worth writing home about, “Today, because of the technology, reengineering and a common East African customs understanding, consignments can be cleared within 24 hours unlike in the past which took many days... Customs is the branch of URA that handles exports and imports.”

Lunch (a package of chicken, salt, sausage, sumbi, tomato sauce, and irish) plus a drink were served to the tired listeners to woo them back from the stalls to hear more because the commissioner was not done yet. What else would you expect other than feeding all those present when these guys had made a lot of money from the sponsors and exhibitors? Richard’s subsequent presentation was about URA’s role in the export business. (For more details about his presentation, I would suggest that you check out URA’s website @ www.ugrevenue.com) All I could gather because of food in my mouth (I wasn’t prepared to write) was that some taxes had been waivered. The Most Interesting was the waiver of income tax on new agro-processing businesses 30 Kilometres outside Kampala in the new financial year which was just four days away on Tuesday. There was also a waiver on trucks that carry loads above 3.5 MT (Metric Tonnes) so buying such a truck in the new FY would be cheaper. The commissioner Richard Kamajugo even advised businessmen to replace their family saloon cars with an export truck if they so wished… Richard also mentioned the usual waivers of tax on exports such as hides and skins [yet in the past, no body was allowed to export them]. “Uganda gets her foreign exchange from exports. So without large amounts of foreign exchange, we cannot trade for imports with the foreigners. URA has come in to facilitate and promote exports…”

This was more of an export promotion exhibition. UCIFA Chairman Omar Kassim was also one of the speakers and said “UCIFA is always open (for exporters and importers)”. Sponsors (who were honored after the Rwandese minister’s speech) plus Advertisers included (in no distinguished order) PSFU, Barclays, SkyNet, uganda telecom; MTN, UIA (Uganda Investment Authority) alongside UEPB (Uganda Export Promotion Board); Stanbic Bank; Nine international embassies like Holland, UK, et cetera; South African Airways, UCIFA (Sitting at the stall was board member Lino Criel Icila and the Secretary to UCIFA’s Chairman)…Secretary General Jad Johnsons Tabule who is also the director of Freight Kargo Masters was in the crowd and so was Assistant Chairman Lawrence Ayebare who listened to the presenters; CMA (Capital Markets Authority); dfcu Bank (offering Land Loans between 5 and 75 Million UgX and other services); UPS & Daks Couriers; UFFA (Uganda Freight Forwarders Association) the second Clearing and Forwarding Association in Uganda; Tourism Uganda, UAP Insurance Company and other exhibitors not mentioned; Citi Bank Group put up their banner but were not present…

Below is the spirit of UCIFA’s role in the import and export business. As the foremost umbrella body of clearing and forwarding firms in Uganda, UCIFA is an intermediary between customs and importers or exporters. They carry out the necessary customs documentation and lodgments of entries. The body advises clients on customs requirements, laws, regulations and procedures. UCIFA updates clients on changes that occur from time to time. It facilitates import and export operations in the most efficient and cost effective manner. Also, it advises on the mode of transport & the facilities in transportation; liaises with Uganda Revenue Authority and other stakeholders in the facilitation of import and export business thus facilitating trade and tax collection.

Seeing far with UCIFA

UCIFA is the acronym for Uganda Clearing Industry and Forwarding Agents (Association). UCIFA’s vision and mission is to be established as a leading member-owned institution involved in the clearing and forwarding industry, based on the foundations of professionalism and well established working synergies with stakeholders at both national and international levels.

Goals and Objectives:
i) To guide the institution in the right direction, help it to improve its
financial status, prepare for the future and measure its progress
ii) To prompt the institution to think about where it has been, where it wants
to go, and how it will go there
iii) To strengthen the institution operations through the assessment of its
current situation, determine its base potential for development and
development of its strategies for progress
iv) To assist the board and management develop the institution on the broad
foundations of professionalism including extensive outreach and mobilization
of members and achievement of financial self sufficiency
v) As a measure to implement portfolio projections through the projected and
the analyzed financial plan in the last part of this particular strategic
plan.
vi) To be applied as a management tool through out the 5 years period

Types of Services offered by UCIFA to its members and stakeholders include:
i) Capacity building in clearing and forwarding management which involves
periodical training programmes, workshops, seminars for board members,
committee leaders and staff
ii) Membership mobilization and UCIFA recommends its members for acquiring
agents licenses from customs
iii) Acts as an organ of communication between its members and Customs
Authorities and other stakeholders
iv) Provision of Technical know how on logistics Management in the industry
v) Advocates for the costs reduction in terms of THC, demurrages customs duties
etc.
vi) Joint Design/ Re-Designing procedures with key Stakeholders
vii) Spearheading socio-economic programmes amongst members
viii) Mouthpiece/ advocates for the Members


P. O. Box 2858 Kampala, Uganda (East Africa)
Tel: +256 414 437533
Email: ug_cifa@yahoo.co.uk
MTAC Building Top Floor
Suite B1, Nakawa Industrial Area
Near Customs Business Centre

23 June 2008

Promoting Evidence-based Leadership

On Friday 30th March 2007, the Makerere University Institute of Public Health and Leadership Initiative for Public Health in East Africa organized a public lecture by an eminent scholar, Professor Eamon Kelly, at the Sheraton Kampala Hotel’s Rwenzori Ballroom. It was a 2 hour programme about ‘Leadership and Implementation Science’ and started at 2.30 pm. Also present was Professor Livingstone Luboobi, Vice Chancellor Makerere University Kampala [the Guest Speaker]; Professor David Serwadda, Director Makerere University Institute of Public Health [Chairperson], Dr. Sam Okuonzi, Director Regional Center of Quality for Health Care [Discussant]; and Dr. William Bazeyo, Principal Investigator Leadership initiative for Public Health in East Africa (LIPHEA) who was the Master of Ceremony.

“Yesterday, I was talking to the Ugandan Parliament…With so much money going into projects, why are we seeing so little in results? What makes policy formation difficult and policy implementation even more difficult? I do not believe charismatic leadership is good leadership because it is arrogance based. Evidence based leadership is more effective...” Prof. Kelly said. Currently the 13th President of Tulane University (Chosen in 1981), he was born in New York City and has a Masters plus PhD in Economics. During his regime, faculties reached new heights and many new structures were constructed. As far back as 1960, Dr. Kelly was appointed Director of Policy Formation by the United States President. He developed the first domestic satellite system in the United States. Kelly was also a Special Consultant to the US House of Representatives, Special Assistant to the Secretary in the U.S. House of Labour, just to mention a few positions. In 1995, United States President Bill Clinton appointed him to the National Science Foundation (Board) and three years later he was elected as Chairman until May 2002. He sits on the boards of many civic organisations and is a professor in Economics, Latin American Studies plus Theology.
“What leaders really do is manage change. Institutions are habits of thought; psychological ways of doing things. Leaders have to be able to look around the corner, discover which changes are likely to occur and find solutions. Why are we less successful? It’s because we lack capacity in implementation. If leaders do not do a good job, it impacts those in the poorest section of society.” Dr Kelly lectured the full house.
“In strategic planning, the four most common errors are misjudged missions, too many goals, misunderstood constraints and ignorance in implementation. To determine a mission, you need to know your comparative advantage, financial feasibility, opportunities cost, and also evaluate your rivals plus environment Goals require programmatic, financial and performance measures besides feedback mechanisms. Unfortunately, no one wants to be evaluated.” He added that we should specify goals with the largest problem first, then limit the number of goals, stay with original goals, know the goals of different power groups and measure the goals. “The more goals you have, the more difficult it is to achieve those goals…Increasing revenue is the answer critical for social goals.” Non traditional sources of revenue include Specialised Consulting; Recreation Center; Cybercafés; Managing hospitals; Changing financial arrangements like banks and insurance companies, Privatization and Public fundraising from Government or international financial organisations.
Constraints should be targeted with so many things in mind: their Importance; Examples; Policy space: Personal/policy elite; Social pressures and interests; Historical conditions; Cultural factors and Economic conditions. “The role of leadership is to expand the policy space to deal with constraints. What is the most efficient combination? Leadership responds through Education (Marketing).” A Marketing Plan involves research, cultivation, soliciting (asking), proposals (before, during and after) and follow ups. “Sometimes you have to explode the constraint block…Every country that has access to I.T. will access information like the others and reduce the digital divide. A leader who understands that institutions are habits of thought has to change people’s attitudes…”

The main discussant Dr. Sam Okuonzi, Director of the Regional Center of Quality for Health Care had this to say, “In Uganda, we seem to have too many goals which are inconsistent…We are experiencing leaders who appear to be following directives …and do not appear to exhibit the kind of leadership required. The determinants of health are outside the health sector and it is leaders who can improve the general welfare of the people. According to some literature I read, ‘leaders should focus on desired results’. In health, it is improvement of the health status in the country. Leadership based on evidence is something that can be learnt, it takes time. You pass through certain processes. We are getting a rich experience from our colleagues (in the States). MUK and the Ministry are designing leadership courses. Secondly, the country should develop guidelines for leadership principles, for example through interviews, and we need to get our health goal and overall national goals clear. There seems to be a conflict. We need to harmonise these goals for a strategic way forward for this country.”

After the first question and answer session, the discussant added the following in response to two questions directed at him, “There are at least eight determinants of health according to research statistics: Peace; Proper Nutrition; Food; Adequate clean water; Level of education; Gender parity (driven by social groups); Economic growth; and Distribution of income…The only thing the ministry can do is to improve health services… There is a lot of hope to resume (Global Fund) funding for Uganda if management is sorted out.”

Can't Do without Buveera

They have been demonized for causing drainage plus sewerage blockages; cancers in addition to other diseases in the digestive system and for failing to decompose quickly. However, even when the Minister of Finance and Economic Planning banned the use of ‘Buveera’ in Uganda while reading the budget for the new financial year 2007/8 on 1st July, few people followed the ruling. The problem was that ‘wanainchi’ were given only one month to stop the use and manufacture of these unwanted products. Instead, the importance of these bags was laid bare for all to see and no one dared to implement the ministry’s direction.
On Wednesday 30 April 2008 while returning to Nakawa from town around 9 AM, someone in the Ntinda bound taxi I was in suddenly mentioned something interesting, “There is tight security here.” I wondered where yet I had been in that area around 7 AM with my manager and saw nothing. It really takes a short time for things to happen. When I looked that way, I say a banner with Uganda Revenue Authority written on it campaigning against Buvera, “Keep the Pearl pure”. They were probably launching aggressive action against Buveera. Later on in the day while watching News on TV, I learnt that it was a joint initiative alongside other local organizations against polythene above 30 microns.
“I think they are going to pull this off,” one lady commented as I got ready to disembark. Come to think of it, they have enough resources to support a ‘kaveera-free environment’ but people somehow cannot do without these bags; the only other option could be to produce quicker decomposing (bio-degradable) polythene bags. Otherwise, we may just have to find the better solution as we eliminate Buveera

True Happiness in the midst of hardship

Even in the midst of all our problems like potholes; high cost of living; suburb based crimes; unemployment; debts; rising food prices; bankruptcy; and so much more, you can still find a balance. Happiness is relative; sometimes you have to feel contented with whatever GOD gives you however little, or else you will never be satisfied. Personally, I am learning how to regulate my desires ... Afterall, my country Uganda is the Pearl of Africa. What more should I ask for?

During the 5th annual Amakula Kampala Film Festival in May 2008, Black South African Vincent Moloi made a film about Leonard Johnson, a white homeless drug addict begging on the street in post-Apartheid Johannesburg. Leonard (not real name as Moloi later found out) had an ancestry of famous high class relatives from Europe. However, after ‘uneducated Blacks’ took over in 1994 as he complained, everything went down hill for him. The laid back white said his begging is not while sitted but logistical just above the pavement while standing, so he was not doing badly. Sometimes Leonard and his homeless friend would try to sell jewelry. Actually, he had a bed to sleep on and some of the gifts from generous passers-by he would use to pay rent. One day, a young woman who worked in a bank ran up to him and gave him some money because she had just been paid. How uplifting is that? His wise words are, “A man may have everything and still commit suicide ... Why? It is because of his way of thinking.” Everybody came into this world to endure pain. If you want to live in it, you have to smile no matter your status. True joy or happiness can only be found in heaven ... Here it is just “kiwani” (unreal or fake), but it has to be there for us to survive for a moment ... That is why some people create their own dreamlands and others enjoy them as paintings or movies which unconsciously relieve them from depression.

04 June 2008

URA’s inaugural Open Minds’ Forum

The Motion for URA’s inaugural Open Minds’ Forum at Hotel Africana’s Nile Conference Hall in January 2008 was: “It is the Sole Responsibility of Government to provide an enabling Business Environment”. The Chairman was New Vision Chief Robert Kabushenga (who went to China for studies on 1 June 2008)

1. Elly Karuhanga defended the motion of the debate: “A poor man cannot sleep. Neither can the rich man because the poor man is awake. At the age of five years, every Japanese child is told (by the government) that if you do not work hard, the world will consume you and you disappear on this island.”

2. George Egadu, had a contrary view, “Does government know the challenges of discharging this responsibility and does it have the money, time, expertise and commitment to deliver? Does government realize that it needs help? [‘Sole’ means one and only, single, not shared] Conditions and facilities in a changing world: “Umeme is the Most Irritating Factor (in our economy) .Government has no vested interest to continuously build quality infrastructure. During Chogm, the government needed to involve the private sector mutually. Business friendly laws…Government can only facilitate. I submit that there are other relevant players…URA has only managed to collect 15 % of the GDP; Uganda Police helped by armed security guards; Banks and micro-finance institutions help government policies concerning ‘Bonna Bagaggawale’ schemes. Perception of corruption reduces government’s capacity to facilitate an enabling environment.

[The guests or August House was asked to join the debate for 20 minutes if adequately provoked: Someone remarked, “The government is like a stomach (A combining factor). Legs move to look for food and the hands put the food in the mouth…”
Another asked, “Can the private sector really be successful without government facilitation?”
Norah, an old girl to the Debate Chairman (Kabushenga confessed that she was academically bright at school) educated the audience, “There are three major players; the President mentioned four days ago in this auditorium that the two most important are the consumer and investor. I would like to add a third: the taxpayer. We need to have accountability for how government uses the taxpayers’ money…”
A different guest complained, “Government supports scientists more than businessmen in the university. (Ineffective government distribution of resources)”
Omar Kassim, National Chairman of UCIFA (Uganda Clearing Industry & Forwarders Association) said,“The government can be equated to a tree top. Charity begins at home. Government comes from within ourselves. So where are the roots? Within ourselves, and the taxpayers make up the roots.”
Eric Ouma said, “The government provides the lead and the private sector provides the backbone. The percentage of taxes collected is not optimum and government cannot provide facilities entirely. We are in the same boat and need to hold the oars to row the boat.
There was time for a powerful note of wisdom from a senior citizen. He commented, “Many good ideas off topic; Government needs partners but it is their sole responsibility: provide donors, makes sure investors come, roads are present…How the responsibility comes out is another matter.”

3. Hon. Nandala Mafabi proposed, “When they tell you that you should lead, then it’s a responsibility. Government must create policies to facilitate the private sector…Government can borrow from the public through treasury bills and bonds…In Uganda, the biggest problem we have is corruption. URA is collecting but wastage is high. Government has the role to ensure that the environment is enterprise-friendly…Research and Development, Policy implementation, Democracy is important, Insecurity must be dealt with…”

4. Patrick Bitature, owner of businesses in Nigeria and Uganda including the Protea Hotel and famous for bringing the MTN franchise to the Pearl of Africa is the son of the late Paul Bitature enjoying government solidarity. However, he opposed the motion basing his articulate opinions on truism. It’s a simple fact (that government has a responsibility) but “let off the hook by the word ‘sole’, an ugly word. It’s very obvious that government does not do business. It is the private sector that is good at business. It is not their main responsibility.” He elaborated on PPP (Private Public Partnership): “Top – Down Thinking is rubbish (A Successful private sector brings lasting peace and productivity). This is private sector led growth. Where has government fallen short of our expectations? As our country matures, that can be done by our private sector. There were days when garbage collection was the role of government…Snail paced education system… pyramidal structure where few are adequately trained for the business environment. We are not aggressive and competitive, Poor work ethic…We have to nurture this private sector and build PPPs. SMEs (Small Medium Enterprises) do not last 5 years, do not document their mistakes and accounts. People are relocating to Dubai and Canada, why? Failure means loss of jobs. How many jobs does government provide compared to the private sector. Jobs allow people to feel useful and makes a country an important player in the market…Mindest change…Need for creativity and innovation to survive in the modern world but without productivity, we are at a great loss…First, opportunity is the proliferation of ICT, Energy and Electricity (Makes failure become success), Harness Oil industry, Tourism and Conference hub, Food basket, High Value exports e.g. flowers…Awaken from your slumber. Aren’t you tired of hearing the word potential, potentially Uganda?”

Hon. Baguma Isoke, the first speaker in the Second Part of Responses from Guests said, “To the list of makers and breakers of the economy, I add the Press. Traditional cultural leaders can attract or scare away investors (Making land available); Religious leaders (Ugandans are backward and superstitious); Professionals (Academia, thinkers, philosophers, economists). What holds the economy stagnant? Propose a way forward. We need new thinkers. This is not the responsibility of government alone. Political parties have a role to play, think out Plan B instead of only A.
Flavia who spent over 20 years living and working in the UK advised Government to create policies that entice the Diaspora, “Diaspora should be the first to be considered as investors. China has turned its economy around by involving their Diaspora…”
Mr. Kamjira, Chairman LC V Mbarara said, “I need to emphasize that it is not the responsibility of government alone. The government is not going to do the thinking for us, it can only facilitate.”
Patrick, who described himself as a growing mind commented, “This is what we have always lacked as Ugandans. I would like to liken Uganda to a father with a big family and a teacher. You might do everything you can but not as much as required. Ask not what Uganda has done for you, but ask what you have done for your country!”
A Macos old student said that Ugandan youth with creative minds need the help of a parent and teacher.
Harriet Wandira, SDV Logistics in Nakawa added, “The motion would be practical in developed countries. We lack faith, trust and commitment. To trust the government, we cannot do that now; we have to work in partnership.”
Evon Corretta said, “I would like to be told, how do I break into the business? I do not fancy 9 to 5 desk jobs. We need to take advantage of the youths in as far as the economic battleground (is concerned).” The Forum’s Chairman Robert Kabushenga chipped in and joked that ball possession was now 73 % but he was not going to mention which side had it. I bet it was the Opposers, though it might have fallen to 56 % later. “Prior to 1986, there was no business environment. Being found with foreign currency was an offense. It is the sole responsibility of the mother to bring you into the world and everybody else takes over. If you are 40 and an MD of something but haven’t done anything for yourself, you need to leave the job for the young…Two way…”
KACITA spokesperson Issa Sekitto remarked, “…Very sensitive subject. Some stakeholders may have a role to play but the capacities of companies are limited. You create opportunities, government destroys. You create opportunities, government unfairly distributes them…”


Final remarks from the four panelists beginning with the last presenter:
Patrick Bitature concluded, “If you abdicate your responsibility, you will have failed us. The youth should rise up and be counted…”

The politician Nandala ended, “Rules to be applied should be put up by government. Government provides a level playing ground. Like in a football game, there has to be a referee…”

Mr. Egadu finished with these words of power, “The word ‘sole’ makes the motion impractical.” He went ahead to give an anecdote about a young boy who failed to pronounce a certain word at school and the mother punished him by not giving him food until he learnt how to say it correctly. When he finally got it right that same night, the boy went to the master bedroom to prove his linguistic improvement and found his parents consummating their marriage. He said to himself, ‘The father screws the mother and the children go hungry.’ Mr. Egadu boldly related this to Uganda, “The government screws the country and the people go hungry. The motto of URA says ‘Developing Uganda Together’ and together, we shall do it…”

Hon. Karuhanga concluded from where he started: talking about being blunt like a Mukiga, “George Egadu is more blunt than I am … Government brought back kingdoms. Shops were returned to Asians, Government provides environment for free trade, Military respects the gun…Mr. Bitature would have no money if government had not liberalized the telecommunications industry…”

URA boss Allen Kagina was also at the high table and gave her speech before Mr. Kabushenga dismissed the gathering. Basing on the show of hands, the Opposers won the (debate) ‘Cup’, “the Private Sector also has a responsibility in supporting government…”