By Josephine Namuloki

When President Museveni met a select group of MPs and other officials at State House Entebbe on October 21, he delivered one terse message: Please handle Chinese contractors with care.

Museveni’s visitors included MPs on the Natural Resources committee, which is probing sand mining around Lake Victoria, in which some Chinese firms are involved. But Museveni’s bigger concern appears to have been the Karuma and Isimba hydropower projects, which have been dogged by concerns about poor workmanship.

According to sources who attended the State House meeting, Museveni is worried that if Chinese firms are ‘harassed’, they could lose the funding that they bring to Uganda. Yet, the president said, the country badly needs that money to develop its infrastructure. Museveni complained that MPs and other institutions were particularly rough in handling the Chinese.

“We need a coordinated approach to avoid negative reports about [the Chinese contractors],” the president reportedly said.

We need to speak the same language when dealing with them. But if one group says this today and another group says something else tomorrow, we confuse them.”

According to another source, Museveni added: “When you scare any investor, definitely the funder of that investor will get scared. Now, what image and impression is being created out there?” the president said, according to a source.

Museveni’s meeting with MPs came on the coattails of two parliamentary investigations: one by the committee on Natural Resources and the other by the committee on Commissions, Statutory Authorities and State Enterprises (Cosase).

MPs on Cosase recently pushed Chinese contractors to refund Shs 26.3bn meant for compensation of people affected by road projects. MPs on the Natural Resources committee, meanwhile, directed Uganda Investment Authority to stop Chinese companies from mining sand in Lwera plains off the Kampala-Masaka highway.

The MPs argued that sand is not an exportable mineral which can be extracted by foreigners, but a locally-used natural resource which should be left to locals.

The president fears that if funders see any negative news about any investor, they are likely to withhold their money. So, he counseled, we “really need to treat our investors with care”.

But his directive could be seen to compromise the principle of separation of powers, under which parliament provides oversight into the work of the executive.

Among other officials, the Entebbe meeting was attended by Speaker Rebecca Kadaga, Attorney General William Byaruhanga, Energy Minister Irene Muloni, and Dr Badru Kiggundu, who heads a steering committee overseeing the construction of Karuma and Isimba dams.

Engineer Kiggundu’s committee and another comprising of young engineers presented their reports on the problems at the 183MW Isimba and the 600MW Karuma dam construction sites. They confirmed the presence of cracks; but it was not clear from our source what the cost of fixing the problem would be in terms of money and project time.

Karuma dam is being built by the Chinese firm Sinohydro, and Isimba by China International Water & Electric Corporation. But reports of shoddy work have forced MPs to push for a thorough inquiry, with parliament recently setting up a nine-man select probe committee

This appears to have alarmed the president. Attorney General William Byaruhanga recently wrote to the ministry of energy warning against any investigations into the two projects. But in Entebbe, Kadaga clarified that committees of parliament had oversight responsibility and were within their right to carry out investigations.

“On that basis, the attorney general withdrew verbally his opinion. He said in the interest of moving the country forward and saving money, he withdrew. So, he literally withdrew his opinion,” a source told us.

Asked about the meeting, Nwoya MP Simon Oyet said: “Everybody was able to express their views and I was happy for the first time to see the president talking tough about accounting officers who are not really performing their duties for reasons unknown.”

By Steven Muvunyi

Motorists from the city centre heading to Kigali Convention Centre (KCC) can now use the KBC roundabout following a directive from the City of Kigali to partially re-open access to the roundabout.

The decision, that takes effect today, was announced at the weekend.

According to City Mayor Monique Mukaruliza, the decision to partially re-open the roundabout was to help increase access to Kigali Convention Centre and an adjacent hotel.

“We want to encourage Rwandans to visit Kigali Convention Centre because it is theirs. There are Rwandans already visiting the place, to tour and take pictures, go in the hotel, and hold meetings at the convention centre,” Mukaruliza said.

Mukaruliza added that it was easier for motorists from Remera/Airport to access Kigali Convention Centre but those coming from the Central Business District were inconvenienced.

Access to the roundabout was closed in July when Rwanda hosted the 27th African Union Summit.

Mukaruliza thanked city dwellers for their patience and willingness to quickly adapt to the changes in the flow of traffic.

“City motorists have always been accommodating and embraced the changes,” she added.

By Henry Lyimo

Tanzania has the lowest mobile data cost in Africa as it reaps the benefits of the rollout of 4G LTE network by state-owned TTCL and intense competition from numerous operators.

According to ICT Africa report released recently as #DataMustFall campaign gains traction in the region, Tanzania has the cheapest rate for one gig at 0.89 US dollars in comparison to South Africa which is priced at 5.26 US dollars.

Other large markets such as Egypt, Kenya and Nigeria have higher data prices than Tanzania the report says, showing the cost of 1GB of mobile data in Kenya is 5.0 US dollars, Egypy 2.8 US dollars, Nigeria 5.26 US dollars and Malawi 5.8 US dollars.

There is a strong relationship between the prices charged in the relevant countries for data and the profitability of the companies, the report said. Commenting, a telkom expert, Mr Kamugisha Kazaura, said the low cost of mobile data was due to the rollout of high speed data network through 4G LTE technology by state-owned telecommunication company, TTCL and intense competition from major service providers. “Comparatively we have the lowest cost in the region.

“TTCL came with very affordable prices after launching the 4G LTE network last year which forced other providers to lower theirs,” Mr Kazaura, former TTCL Chief Executive Officer, told the ‘Daily News’ in an interview. He said competition from other major mobile data operators had contributed to lower prices of mobile data in the country.

“We enjoy price advantage due to intense competition,” he said, adding, however, that the potential for further growth was high because of low service penetration.

The market has a great potential for growth as internet penetration is hardly 20 per cent while global average is between 45 to 50 per cent providing huge opportunities for operators to upgrade and reach more areas, he said. “The opportunities in the market are still immense,” he said.

According to internet usage statistics for Africa provided by Internet World Stats, internet users in Tanzania are estimated to reach 7,590,794 as at 30 of June, this year, which is equivalent of 14.5 per cent of the total population.

By Ali Twaha

Kenyan Supermarket chain Nakumatt is in urgent need of a capital injection. Anything short of that could see the regional supermarket chain falling, writes ALI TWAHA.

As recent as last year, the Oasis mall parking lot, where Nakumatt supermarket is the anchor ten- ant, used to be a beehive of activity. Finding parking space required patience and tact; trolleys dripping with items used to squeeze through cars; and the security men manning the entrance into the mall were constantly opening car boots and shutting doors.

These were the good times at Oasis mall when clients stormed the area in droves. The mall has, however, turned into a shadow of its former self as Nakumatt runs into all kinds of trouble from battles with its suppliers to financial bottlenecks it faces leading to a drop in the numbers of customers going to the mall.

A number of customers continue to complain at how thin and empty Nakumatt’s shelves have become after the supermarket stopped stocking some items because of unresolved disputes with its suppliers. Nakumatt stopped selling some major items such as Coca-Cola, sugar, Heineken and a range of other alcoholic drinks following allegations it had failed to settle its outstanding debts with suppliers.

Management issued a statement last week, explaining the precarious situation the supermarket finds itself in. The company’s managing director, Atul Shah, noted “Like any other business operating in this market, Nakumatt Holdings has faced a number of unforeseen business challenges. These challenges

range from a depressed economy, higher operating costs and extraneous factors including enhanced risk management due to prevailing security threats among others.”

It added: “As expected, these factors have impact- ed on operations on many fronts including cash flow.”

Trouble has been brewing at Nakumatt for quite some time. In April, The Observer reported about a strike at the Kenyan supermarket chain. Then, workers complanied about discrepancies in pay.

Some workers The Observer spoke to at the time said they were protesting against management’s decision to slash their salaries without a reasonable explanation. Others said management at Nakumatt was too arrogant to listen to their pleas.

By Otushabire Tibyangye

I decided to migrate from Bulemeezi in Buganda to Nyabushozi, Ankole, in 1963 so I could practise mixed farming although my background is cattle keeping.

One of the reasons why I settled here was to have enough land for both keeping cattle and growing cash crops such as coffee and tea, and other food crops such as bananas.

My target was to produce milk alongside other crops. When I came to this village, Kyejo in present-day Kazo county, I had only 10 heads of cattle. They were local breeds.

I had not gone far with education having finished the equivalent of Primary Four in 1950, but was focused on what I wanted in life.

Banana growing

I immediately established a banana plantation of two acres to feed my family and give to my neighbours who were few at that time.

I eventually acquired 200 acres of land where my farm currently is. The money was from the sale of beans and chicken. I have always grown beans, which helped me raise capital for labour.

I started with an acre of beans and kept expanding it up to 10 acres. As I planted beans, I would use the same land for bananas. At times, I harvest about 100 bags of beans a season.

Currently, there are 10 acres of bananas intercropped with paw paws where I harvest 300 bunches and earn between Shs2m-Shs3m depending on the season. I sell most of the bananas to traders, who come from Mubende, and few to locals in the village.

Later I planted two acres of eucalyptus trees to provide poles for use on my farm. This forest has not only provided poles for my farm, but have also become a source of revenue.

I have established a pole treatment plant, from which I earn up to Shs2m depending on the demand. With the demand for electricity poles, I have also planted two more acres of trees, which are about to mature.

Dairy animals

In 1973, I visited dairy farmers in Bushenyi District and found that they had introduced exotic animals. When I came back to my farm, I was determined to change my animals too.

I bought a bull from there and since then I have completely done away with the local breeds, whose number had come up to about 200. I now keep 80 cows, which are improved breeds, that produce 200 litres of milk a day.

I fenced off the land and put paddocks in place to control disease through ticks from other animals, wastage of pastures and also to reduce costs of labour.

I have also improved the pastures by planting Rhodes grass, Calliandra and Napier grass for supplementary feeding of lactating cows.

I have also introduced zero grazing for animals that give higher yields.

There are four such animals, which among them yield 60 litres of milk per day.

I have a “sick bay” where the animals are treated expecially those that fail to deliver and those that need extra attention.

This sickbay has saved four animals, which had complications during delivery. They delivered calves via Caesarean section just like how human beings can be operated on.

By Bernard Lugongo

The supply of sugar against demand is set to increase as more investors have shown interests to venture into investment in the sector, hence promising a big relief in prices of the commodity in the country in future.

In this vein, the Minister for Industry, Trade and Investment, Mr Charles Mwijage, and the Minister for Agriculture, Livestock and Fisheries, Dr Charles Tizeba, would this month depart to Mauritius in a mission to attract investors into the sugar sector.

The Permanent Secretary in the Industry, Trade and Investment Ministry, Professor Adolf Mkenda, told the ‘Daily News’ through the telephone yesterday that preparations were being made for the trip. “The talks with Mauritius have already been held and they are waiting for us to go,” Prof Mkenda said.

The good news from the government came at the time when Tanzanians are now feeling the pinch of hiked sugar prices for the past eight months. Prices for the essential commodity went up from early this year when the shortage of the product hit the market due to some of the traders ‘sabotaging’ the economy by holding big chunks of sugar in their warehouses.

The situation had forced the government to embark on a countrywide search for hidden sugar, which resulted into prices going up to over 3,000/- from about 2,000/- per kilogramme in many parts.Since then, prices have slightly gone down, largely hovering at around 2,500/- per kilogramme.

Mr Mwijage, told the ‘Daily News’ that the sugar production was good for the country as it serves as a catalyst to utilise its potential capacity of producing 2 million tonnes against the current 300,000 tonnes per year.

The minister noted that several local and foreign investors were now in different stages to set up sugar firms — mainly in Morogoro, Kigoma and Songwe regions as well as Rufiji District of Coast Region.

Last week, the National Social Security Fund (NSSF) and PPF Pension Fund announced plans to jointly establish a sugar processing factory at Mkunazini and Ngerengere in Morogoro Region. The pension funds stated that the proposed factory will be in a position to churn out 200,000 tonnes of sugar per year.

Mr Mwijage noted that in Rufiji two major foreign investors are set to establish giant sugar factories. But he was not in position to tell the timeframe within which they would start operations. He said another foreign investor was set to embark on massive sugarcane farming in Songwe, noting that currently, talks are ongoing with the relevant authorities for the company to begin production.

He further noted that the plans were also to make the existing sugar factories to raise their production capacity, saying the Morogoro sugar industry is set to produce 270,000 tonnes per year by 2020. He said Kilombero sugar and Kagera sugar factories were directed to produce more.

According to him, the ministry is now conducting talks with existing sugar producers to list down the challenges they face in efforts to increase production to enable the government to find solutions

.Meanwhile, Mr Mwijage reported that his ministry has implemented the directive by President John Magufuli to set aside 10,000 hectares of land in Bagomoyo District for Bakhresa Group of Companies to establish a sugar factory.

y Annie Njanja

American online taxi hailing company Uber has slashed its charges in Mombasa just days after Safaricom-backed rival, Little, announced its entry into the coastal city.

The new charges that took effect Thursday will see the San Francisco-based e-hailing firm charge riders Sh35 per kilometre down from Sh50.

The firm has also reduced its charges per minute by Sh2 to Sh3 and cut the pricing of short rides by Sh100 to Sh150. Base fare and cancellation fees were also cut by Sh30 to Sh50 and Sh200 to Sh150, respectively.

The new rates come three months after the firm slashed Nairobi prices by a third. The firm cut the app’s per-kilometre cost to Sh35 from Sh60, and lowered per minute transit charges by Sh1 to Sh3, but left the minimum charge intact at Sh100.

“We want to make sure that Uber is one of the most affordable ways to get around. With reduced fares, we believe Uber can now be a true alternative to people driving their own cars into the city centre, with all the hassle and cost that parking brings,” said Uber in a statement.

The new rates are set to rival Little’s which has positioned itself as a cheaper option. The firm charges passengers Sh55 per kilometre and Sh4 per minute — with no flat base charge or price surges. Uber applies price surges, where it hikes rates by a multiple, say 1.5 times, in the event of high demand.

Uber launched its services in Mombasa, Kenya’s tourism hub, in March this year. The new prices also come just in time for the Christmas holiday when the town experiences an influx of local and international travellers who are likely to use the service.

Uber is regarded as Kenya’s biggest taxi online hailing firm with more than 1,000 drivers recording about 10,000 journeys every day.

Pewin cab’s Dandia app, unveiled last month, also plans to make an entry into the coastal town. The firm expects to intensify price wars in the e-hailing space with its fixed zonal charges.

Dandia e-hailing application has set specific charges between destinations, unlike rivals Uber, Mondo Ride and Taxify which only indicate a price estimate at the beginning of a trip.

State-owned Kenya National Taxi Corporation is piloting an app in Nairobi to challenge Uber’s dominance and take a bite of the retail cab market. The e-hailing service is available in Nairobi and will by year end be unveiled in Mombasa and Kisumu.

The online taxi hailing apps have an attractive pricing model where every trip is automatically and openly costed, helping users to budget for their travel expenses unlike regular cab drivers who quote their prices based on arbitrary spot negotiations with clients.

By Peter Saramba

Mwanza — Cotton stakeholders have pointed out the absence of field extension services, poor quality seeds, shortage of pesticides and lack of markets as among the challenges hindering the development of the cotton sub-sector in the country.

Presenting his preliminary report on challenges and what needs to be done to increase cotton production, Prof Reuben Kadigi told the stakeholders from across the country, including farmers, agricultural inputs agents, buyers, exporters, processors and quality control instruments, that the only way to improve and increase cotton production was to establish small, medium and large processing factories in the country to reduce the rate at which cotton is being sold as a raw material.

According to Prof Kadigi, Tanzania currently can manage to process only 30 per cent of its cotton, while the remaining 70 per cent is being sold as raw material.

“We are not only selling raw material, but also wasting employment opportunities for our people. This must change,” urged Prof Kadigi.

For his part, the Vice Chairman of the Tanzania Cotton Growers Association (TACOGA), Mr Godfrey Mokiri, said apart from making sure farmers get seeds and other inputs in time, there is a need to have a special fund mandated to compensate farmers depending on world market prices.

“With proper advice from field extension officers on the best ways to increase production, we should also aim at introducing small industries in our areas to add value by making the spindle fibres and finally clothes instead of selling our cotton as raw material,” said Mr Mokiri

Commenting on the quality and direct benefit to cotton stakeholders, a cotton buyers, Mr Mohamed Sharif from Birchad Group, urged the government and other relevant authorities increase efforts in regulating players including farmers, buying agents, extension officers, seeds and pesticide suppliers.

ACT Managing Director Janet Bitegeko said the council reached a decision to make a preliminary study of the challenges and the best way to control and efficiently manage the value of chain in the sub-sector.

Ms Bitegeko urged cotton stakeholders to join hands and fight together for their sectoral development.