Monthly Archives: April 2017

Good African Coffee Closure. Is Uganda’s economy on Auto Pilot?

Andrew Rugasira is no saint, however one thing I can authoritatively say about him is that he is a resilient entrepreneur who always turns ashes into beauty. Many years back, I recall him running a prominent promotions company called VR Promotions which bit the dust. He was humble enough to go into hibernation only to re-emerge a couple of years later with Good African Coffee.

When I bought the newspapers of the 25th of April 2017, I was taken back upon reading a story about how the tax man had closed down his business for tax arrears of UGX 1.2 Billion.

On the 23rd of April 2017, Ian Ortega posted a mind opening article on Facebook in which among others he stated, “… We pride in building mansions in our villages in a sea of mud and wattle houses. And in the end we pay for it with insecurity, with deaths. It makes no sense to have majority poor and few rich. It always backfires… Start doing something to make sure the economy works for everyone regardless of their field. Let it work for a musician, for an artist, for an engineer, for the teacher etc. That is how you build sustainable societies.

Having interacted one on one with Mr Rugasira a year back, I got to know quite abit about his ethos. While he is a hard nosed businessman, his passion for equitable growth and development is worth admiring.

Businesses close for various reasons and their closure has varying impacts on the economy. There are businesses whose closure will largely cause ripples among a few selected elites (who tend to be the noise makers) while others have the Fall Army Worm effect of distorting the bottom of the pyramid poor.

According to the New Vision, Good African Coffee has a network of more than 14,000 coffee farmers and has facilitated the set up of 17 (Seventeen savings and credit organisations) for these farming communities. The average household in Uganda has 5 members. This implies that if each coffee farmer is equivalent to one household, then the direct impact of his investment at this micro level has a reach of at least 70,000 people. Considering that in Uganda, it’s part of our culture for a household head to help various extended family members especially economically, we can safely assume that each farmer has an impact on 10 (ten) people in the extended family bracket. This implies that upto 140,000 people indirectly benefit from Good African as a result. On average we can safely state that at least 200,000 people from the coffee growing region are beneficiaries.

The New Vision further stated that the Good African products are available in over 700 UK Supermarkets as well as 500 stores in Africa. As a supermarket patron, I have come to learn that products on those shelves serve not only the purpose of consumer consumption but also national branding. How many people today in the UK swear by Good African Coffee? Judging by the inquisitive nature of today’s shopper, chances are high many have got to learn more about Uganda in the process. What better marketing for our nation?

While I am inclined to believe that management issues have definitely contributed to the status-quo, it’s quite sad that the tax man would be left to execute such a closure without proper appreciation of its wider implications. The Uganda Revenue Authority is not to blame since it is merely an execution agency tasked with collecting revenue for the Government. However, with all the tax breaks we keep hearing being directed to questionable foreign investors, why would a legitimately Ugandan owned and home grown business fail to be extended help? We just heard about the planned UGX 77 Billion tax relief that a number of companies whose list is led by the Sudanese owned AYA Group of Companies are likely to get. In my view, the footprint Good African Coffee has is much wider than AYA and any of those companies on the bail out list yet above all it impacts the lowly farmer whose sole hope for survival is farming.

We always hear of decisions being made in National Interest and this is what Hon. David Bahati, the State Minister of Finance for Planning emphasised while meeting Parliamentarians over the AYA bail out. Why was Good African overlooked?

  • Is it because the latter promotes the well being of peasants and there is this general fear among the political elite of genuinely empowering them?

  • Could it be that Rugasira doesn’t have the right brokers to argue out his case before the high and mighty in the Ministry of Finance?

We have been led to believe that overnight business moguls who set up with Shopping malls out of the blue are the ones that deserve respect and propping in order to keep our economy afloat but if we do not babysit the Rugasiras of Uganda and ensure that their businesses succeed at all costs, we shall continue in the cyclic rat race characterised by chronic poverty. Government should sit down Andrew Rugasira, make it clear to him that the success of his business is a national priority and could even have security implications considering that a large section of the farmers are from the already troubled Rwenzori region who might perceive matters differently. The riot act should be read out to him before working out bail out terms and conditions.

PS: In case you are comfortably employed with a regular salary and high flying MBA, you might have a problem appreciating the challenges genuine entrepreneurs go through in this Ugandan economy of ours. One day though, I hope you will be around long enough to appreciate what goes on the other side of the bridge.

I say, Bail Out the Brother !!!!!!

[UPDATE: Two days after publishing this aricle, Good African Coffee was reopened. I thank the authorities for having exercised a sense of sobriety. Now the ball is in Rugasira’s court to ensure he complies as required. ]

James Wire is a Small Business and Technology Consultant based in Kampala, Uganda

Follow @wirejames on Twitter.

Email lunghabo [at] gmail [dot] com

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HOW TO – Start a Mobile Money Business

Mobile Money (MM) is a form of electronic money service that enables phone owners send, receive and store money. The relative safety, ease of mobility and convenient nature of this service has endeared it to all sections of the society from the rich to the poor.

Before we proceed, it is important that we familiarise ourselves with some terminologies.

Agent: A person or business that is contracted to facilitate transactions for users. The most important of these are cash-in and cash-out (i.e loading and withdrawing money onto/from the MM system). They sometimes register new users, a service that earns them extra commission. As front line personnel, they also teach users how to best use the service.

mobile_money_agent

A Mobile Money agent in Kyebando, Kampala, Uganda

Aggregator: A person or business that is responsible for recruiting new MM agents. This role is sometimes combined with that of a Master Agent.

E-Money: Known as Electronic money in full. It is stored value held in the accounts of users, agents and the provider of the MM service.

Cash In: The process by which a customer credits their account with cash. This is done usually via an Agent who receives the cash and proceeds to credit the customer’s MM account.

Cash Out: The process by which a customer withdraws cash from their MM account. It is done usually by an Agent who gives the customer cash equivalent to a transfer the customer makes to the Agent’s MM line.

Float: The balance of e-money or physical cash that an agent can immediately access to meet customer demands to purchase or sell e-money.

Liquidity: The ability of an agent to meet customers’ demands to purchase (cash-in) or sell (cash-out) e-money.

MasterAgent: A person or business that purchases e-money from a Mobile Network Operator wholesale and then resells it to agents who in turn resell it to users. They usually manage the cash and e-money liquidity of their agents.

Mobile Money Transfer: A movement of value that is made from a mobile money account to another through the use of a mobile phone.

Platform: The hardware and software that enables the provision of a mobile money service.

In Uganda, the Mobile Money system works as follows;

The Mobile Network Operator (MNO) like MTN, Africell and Airtel sets up a platform that offers a service for phone owners to be able to “store and transfer” e-money using their phones.

A phone owner registers for the mobile money service with the telecommunications provider who creates the mobile money account associated with that particular registered phone number.

The customer then proceeds to cach-in onto their mobile money account by using a Mobile Money agent whom they give cash in exchange for e-money on the Mobile Money account.

This customer can through the execution of some commands send e-money to another mobile money account holder anytime they so wish. The recipient is at liberty to cash-out as and when they desire.

Just to show you how Mobile Money services have permeated our economy and become an integral part of our operations, picture the following scenarios;

  • Oloya works in Kampala and is constructing a house in the village. Every two days he is expected to pay for the services of the builders. By using MM, he is able to pay each builder directly onto their phone hence being assured of their commitment.

  • Nankabirwa is a produce dealer who has a network of buyers traversing numerous villages in Rakai, Masaka and other outlying districts. Their role is to identify produce for purchase and acquire it. By using MM, she is able to send money to these buyers of hers in the nick of time. She makes at least eight transfers daily during the peak harvesting season.

  • Pabire a rice farmer in Doho rice scheme by virtue of his mobility utilises MM transfers to pay for his workers’ services. These workers engage in activities like planting and weeding rice, land preparation, harvesting among others. This allows work to flow smoothly even in his absence.

  • Bakka leaves home for work fully knowing that there is no money for food that day. When he reaches his workplace (a washing bay), he transfers his income from washing the first three cars of the day to his wife at home using MM. Come evening, he is assured of finding food at home.

  • Sangalo is organising a wedding and she has reached out to relatives and friends to fundraise. The mode of pledge fulfillment being used is MM. Those contributing are sending their cash pledges directly onto her Mobile Money account.

  • Mugerwa, a parent at one of the boarding secondary schools is called by his son who reminds him about the study tour they are supposed to go for requiring a contribution of UGX 50,000/= per student. Instead of driving there to make payment, he simply sends th money via MM to the concerned teacher who then registers his son for the trip.

  • One can also pay for electricity, water, television and other services using Mobile Money.

So, how does one start this business as an Agent?

You need to have the following basics:

  • Two sim cards (Airtel and MTN). They are the biggest networks and handle at least 98% of the transactions. Others like Africell are still insignificant players.

  • Display Table. You need to have a display table that will not only store the tools of your trade but it can be stocked with other complementary products like mobile phones, accessories like phone jackets, screen protectors among others.

  • A dual sim card phone

  • A chair

  • Transaction books

  • Location

There are three approaches one can use to kick off. They are;

  1. Hiring a Transaction Line: This one involves hiring an already registered Mobile Money transaction line from someone or a company. With this line, you simply start off business without going through any registration hurdles. The things to note about this option include among others:

    • Paying a monthly rental fee of at least UGX 50,000/= for the MM line.

    • Income is in the form of a percentage commission earned on each transaction and is paid at the end of the month.

  1. Acquiring a Transaction Line through an Aggregator or Master Agent: Aggregators or Master Agents are companies that control specific territory on behalf of the Mobile Network Operators. Territories could include places like Kyebando, Kanyanya, Nakawa, Seeta, Bweyogerere e.t.c. These Master Agents get agency tenders through some bidding process and thereafter become responsible for licensing MM agents in their territories. For one to be licensed as an agent, you need to:

    • Present an Identity Card

    • Present a letter of introduction/recommendation from the Local Council

    • Have a deposit of UGX 80,000/= (Eighty Thousand Shillings) to purchase the kit

    • Fill in an application form

    • Have starting Float of UGX 2,000,000/= (Two Million shillings)

Income earned here is in form of commission on transactions. An additional surcharge of upto 10% (depending on the Master Agent) of your income is deducted for tax to the Uganda Revenue Authority.

  1. Direct Registration with a Mobile Network Operator (MNO): One is at liberty to register as an agent directly with an MNO like MTN or Airtel. Its requirements are more than the previous two options and they include:

    • Business Registration

    • Introduction/Recommendation letter from the Local Council

    • Functional bank account (for at least three months)

    • Filled application forms

    • An 80,000/= (Eighty Thousand Shillings) charge for the kit

    • Initial Float of UGX 2,000,000/= (Two Million Shillings) only.

Like the rest, income earned is in form of commission made on the transactions carried out. Unlike option 2 (two) above, with this form of registration, you are only charged the tax levy for Uganda Revenue Authority when your commission earnings exceed the UGX 1 Million Shillings threshold. The MNO then proceeds to deduct 4% which it channels to the tax man as opposed to the 10% deduction by Master Agents. This is definitely a better deal.

Option 1 is as instant as they get. If you want to hit the ground running, you may opt for this one. However, the margins are greatly reduced by the fact that you hire a Transaction line at a fixed monthly sum and because you are operating under another Agent, your margins are lower.

In the case of Options 2 and 3, After application and paying the UGX 80,000/= for the kit, you have to wait for two to three months prior to being approved as an agent. Once that is done, an Agent kit is availed and it consists of; three (3) phone lines, a phone handset, transaction books and other branding material like an apron.

Upon collection of this kit, you’re expected to deposit a float of UGX 2,000,000/= (two million shillings) on your Mobile Money line. Do I see you getting disheartened? True, raising this two million shillings lumpsome is a daunting task to many but there is always a way out. One trick is to borrow that money for a day, place it onto the MM line as float subject to approval and collection of your business material from the Master Agent or MNO. Once you have all that you need, proceed to cash out the borrowed money and return it to the lender.

How do you earn commission?

There is a well established commission structure clearly outlined by each MNO.

Airtel Agent’s Commission Guide (Extract)

Transaction Tiers

Cash In

Cash Out

Min

Max

500

2,500

150

100

2,501

5,000

150

125

5,001

15,000

285

450

125,001

250,000

520

1,300

1,000,001

2,000,000

4500

7,500

When a customer walks in and requests to deposit e-money onto their MM account, depending on the amount, you earn the commensurate Cash-In amount. If it is UGX 10,000/= they are depositing, then the agent will receive a cash-in of UGX 285/= on that transaction. Similarly, the Cash-Out commission applies to money withdrawals from the MM account.

Airtel does allow agents to check their commission status on a daily basis via the phone. However, the same does not seem to be true with MTN Uganda.

Success Factors for the Moble Money Agent business

  1. Trustworthiness: If you have to employ someone to operate this business on your behalf, you need to be able to trust them Anything short of that, you’re setting yourself up for failure. There are very many opportunities that these workers get to collude with crooks.

  2. Location: It is crucial to choose a location that is good. Since the commission on individual transactions looks small, the trick lies in volumes. How many transactions can you notch up a day? Ideal locations are corners of buildings or roads, boda-boda stages, busy trading centres, low cost residential suburbs, shopping arcades, taxi parks/stages among others.

    mm_corner

    A corner location like this one is very conducive for the Mobile Money business

  3. Customer Care: Many customers are ignorant about the operation of the Mobile Money services. They tend to ask questions one may consider dumb hence the need for any agent to have very good customer care skills. While researching for this article, I found agents being swamped by customers who wanted help with Sim Card verification. Imagine!!! Do not compromise on this particular issue when recruiting someone for your business.

    mm_operator

    Good customer care is dependent on the Mobile Money operator

  4. Mathematical Knowledge: The operator needs to have good mental maths skills. Customers come with all manner of requests and you need to be quick to mentally calculate and determine how much to transfer as requested. I witnessed a case where a lady came and requested the operator to cash out money from her account which has UGX 15,000/= (fifteen thousand) and ensure that it remains with only UGX 6,000/= (six thousand). He had to ensure that the transaction fees were factored in too. The operator had to first engage in some quick mental math before eventually fulfilling her request.

  5. Float Availability: How much do you have as e-money or cash? Customers keep walking in and out either cashing in or cashing out. You need to be in position to meet their needs most of the times otherwise they are likely to resort to the competition. I once had a need to cash-out UGX 300,000/=. I walked to three different MM agents in Wandegeya and none could meet my need. Out of frustration, I settled for partial cash-outs based on the float each agent had and this saw me use four different agents to meet my need. Since then, I never go to Wandegeya for MM cash-outs. Remember, if you set a reputation of always having adequate float, more customers patronise your services thereby enriching you commission-wise.

What are some of the notable challenges of this lucrative business?

  • Conmen: There are many conmen on the loose who target MM agents. Any form of sloppiness can lead to severe punishment. There was a case of a man who pulled up his sleek car infront of the agent’s display table, requested her to transfer UGX 450,000/=. She faithfully yielded as he pretended to count some money. The minute he confirmed reception of the money, he simply drove off leaving her stranded.

Most sophisticated conmen have been observed to operate from the city centre locations. So, in case you’re starting out, as you gain the experience, try to operate from the suburbs first.

  • Theft: Due to the carelessness of some agents, there cases of customers whose sole intention of patronising your service is to get to know the PIN number used to access the MM line. Most times agents type in the PIN number in full view of the customers. What the crooks then do is to later return and find a way of stealing the phone handset. Within minutes, they have withdrawn all the money and discarded the phone.

  • Cash Robbery: There are cases where an Agent has to bank the money earned. Sometimes due to late business closure, they might have to go home with the earned cash. Depending on how secretively one handles their operations, thugs tend to get wind of your earnings and simply way lay you.

  • Attention to detail: A customer once walked to an agent and requested to cash-in UGX 99,000/= (Ninety Nine thousand shillings). The agent instead punched UGX 990,000/= (Nine hundred and ninety thousand shillings). The customer paid up and left. During the evening reconciliation, she realised there was a massive shortfall and upon close scrutiny, the anomaly was discovered. It took a week of negotiations and a 100km journey to Masaka from Kampala for the money to be recovered.

  • Collusion: Some staff running the MM outlets have a tendency of conniving with other people to defraud their employer. They then feign ignorance or put the blame on mistakes.

Just to give you an idea, earnings can start from as low as UGX 50,000/= (fifty thousand shillings) per line per month with start-up Float of UGX 500,000/= (Five hundred thousand shillings) reaching an average of UGX 1,000,000/= (one million shillings) with a float of UGX 3,000,000/= (Three Million shillings).

The monthly pay for Mobile Money Operators ranges between UGX 100,000/= and UGX 150,000/=.

While offering the MM services, always consider selling complimentary products like Airtime, Flash disks, Memory cards among others. Airtime commissions can very easily supplement your income too. The current commission structure on airtime of UGX 10,000/= (ten thousand shillings) is as follows:

MNO

% Commission

MTN Uganda

4%

Airtel

5%

Africell

7%

Welcome to the Mobile Money Business.

James Wire is a Small Business and Technology Consultant based in Kampala, Uganda

Follow @wirejames on Twitter.

Email lunghabo [at] gmail [dot] com

Other Articles of Interest:

Additional information from GSMA – Mobile Money for the unbanked.

Irrigation!! What President Museveni’s Government needs to do

If there is one thing that I admire about President Museveni, it’s the simplicity with which he occasionally approaches issues. Months back, he appeared in the media advocating for irrigation using bicycles, jerrycans, plastic mineral water bottles and other non complex methods. His assurance was that as a nation, we needed to embrace irrigation if we are to combat the rampant crop failure year in year out as a result of over reliance on rain fed agriculture.

Drip Irrigation

President Museveni demonstrating drip irrigation at the Kityerela Presidential Demo Farm, Mayuge.

The stand he took however created a backlash on social media with the elite filled platforms criticising his efforts as falling short while baptising them by coining a new term called jerrygation. I am a small scale (largely subsistence) farmer who has never achieved even 50% of the recommended production potential each time I have grown beans, maize and groundnuts. I clearly know that the rain patterns have affected me big time. This experience led me into seriously concluding that irrigation is a pre-requisite to the future of farming in Uganda. In the Doho Rice scheme where I have well irrigated fields, I never make a loss and my production is always spot on.

In defense of President Museveni’s jerrygation, what Uganda’s farmer needs today is a consistent supply of water to be used to grow their crops. While the problem and solution have been well identified, a big gap remains when it comes to turning the solution (in this case, irrigation) into a reality.

Mr President, your demonstration farms are staffed with people who are paid a salary and have it as their job to be around day in, day out to pour water into bottles with the aim of ensuring that drip irrigation is a success. The rural farmer has no where near the resources your demonstration farms boast of. However, this does not mean that they cannot try to emulate you.

Simply put, irrigation is the application of water to plants. It requires two key things; one is, access to a water source and the other is water distribution to the garden.

While Uganda is a small country, it has different geological characteristics as you traverse it. This has an implication on what one can grow and how irrigation can best be undertaken. Parts of the country are hilly, like the West as you near the DRC border, East at the border with Kenya, while others are flat like the near East (Busoga / Bukedi), North East (Teso and Karamoja Sub Regions) as well as the North.

The crops grown across the country vary too. From the largely cereal crop base in Northern Uganda to vegetables in the South and South Western part of the country, Sugarcanes in the East and tea in the West.

All these variations have an implication on the kind of irrigation that can be undertaken, hence the approach of one size fits all not being feasible.

In order to achieve the wider goal of irrigation fed agriculture in this country, the government is going to have to among others do the following;

Zone the Country

The country has to be zoned in a manner that brings together locations with similar irrigation requirements to make it easy for eventual service provision. This zoning is also likely to help the professionals focus on addressing farmers’ water challenges with a better appreciation of the local status-quo.

Deployment of appropriate technology

Due to the variations mentioned earlier, the different areas of the country shall need varying technologies in order to have successful irrigation installations. Some of the details to be looked into while planning this are;

  • Water: Is the source of this water, surface or ground? What is its quantity, availability, flow rate and quality? An example is water that is highly saline cannot work well with sprinkler irrigation.

  • Soil: Soil texture determines its water retention capacity, permeability and transmissivity. This is very important as it determines intervals between irrigation. Permeability in particular plays an important role in surface design and sprinklers.

  • Crops: Different crops demand different watering approaches. A good number of vegetables dislike overhead water application as it tends to make them more susceptible to disease attack when their leaves are continuously wet hence the preference for a drip approach concentrated near the roots. Sugarcanes can do well with overhead as well as surface irrigation.

  • Location: Structures used in establishing the irrigation system should be able to withstand the various environmental hazards like wind, temperature, rains among others.

These and many others need to be well synthesised.

Pilot the deployment

In each set zone, there shall be a need to initially set up pilot installations in order to learn from the anticipated successes and failures. This shall have the net effect of reducing on the White Elephant approach of most government projects that display gross optimism at the start only to end up in a miserable state shortly after.

Set up a National Irrigation Authority

The current approach of letting farmers individually come up with irrigation solutions for their farms is only feasible for the big players. That small farmer with one or three acres of land might not have the resource base to undertake the infrastructural requirements.

Just like we have the National Water and Sewerage Corporation which is responsible for supplying water to homes, we need to set up a National Irrigation Authority which will be tasked with investing in the infrastructure required to ensure that different farming zones have irrigation water systems in place ready to be tapped by farmers at the last mile. This is akin to the current state of affairs where anyone setting up a house can just tap from pre-existing National Water infrastructure to get water.

This authority can then through the employment of professionals address the gaps in the current haphazard crusade aimed at promoting irrigation.

Why do I think this authority can work? Taking a look at the Doho Rice Scheme where I am a rice farmer, the Government invested in the irrigation infrastructure and all we do as farmers is to tap water as and when needed from the channels. During the low water seasons, the management team in charge rations the water flow and this helps avoid conflict among the farmers. Such a model if extrapolated to the national level could go a long way in realising the much needed progress in Agricultural production.

Some of the roles of this authority could be;

  • Carrying out feasibility studies for new irrigation projects

  • Planning, Designing, Constructing and implementation of irrigation infrastructure in the country

  • Operation and maintenance of the irrigation projects in place

  • Training farmers on different methods of irrigation

This authority can then be mandated to report directly to the office of the President since he is the champion for this cause.

It is my view that if only 30% of the total acreage of arable land in Uganda today was to be made productive year round through irrigation, we would create market leadership in food production on the African continent.

While jerrygation is a good shot at this irrigation behemoth, a more structured approach is likely to yield longer term results.

James Wire is a Small Business and Technology Consultant based in Kampala, Uganda

Follow @wirejames on Twitter.

Email lunghabo [at] gmail [dot] com

Other Articles of Interest:

Photo Credit: Operation Wealth Creation

Sim Card Verification exposes the joke that UCC has become

Only Dr. Stella Nyanzi in my view has the right vocabulary to effectively describe the Uganda Communications Commission (UCC) and its haphazard handling of issues.

Five years ago, the commission huffed and puffed about the need to register sim cards citing security as one of the key reasons it was being done.

mkts01px

Eng. Mutabazi being assisted during the launch of the registration exercise. Photo Credit – Daily Monitor, 2012

The Executive Director, Eng Godfrey Mutabazi is on record having said that, “In countries where SIM card registration has been taken seriously, a drop in crime especially cybercrime has been registered. We want to emulate this and see to it that such unlawful acts are done away with.”

 

Many of us supported the move and even used various fora to enlighten the general public about the importance of registration. The deadline set for 2013 passed and before we knew it another threat was issued to the telecoms companies to ensure that the process is completed in 2015. Interestingly, we were led to believe that the issue had been sorted once and for all.

To my shock, earlier this year, information from the Police begun pointing fingers at the use of unregistered simcards by criminal gangs. The UCC kept mum. Is it because the victims were largely lay men? It wasn’t until the investigations into the assassination of the Assistant Inspector General of Police, Mr. Felix Kaweesi (RIP) that the UCC was jolted out of its slumber.

With the kind of resources this institution commands, it is foolhardy for one to believe that they have a genuine reason for such a lapse in judgement. I strongly believe this is a sign of gross incompetence in the institution that is failing to offer the much needed direction for the ICT industry, preferring to concentrate on shutting down internet during election time as well as shopping for pornography tracking equipment. It seems like UCC is narrowing its attention to matters that involve procurement (this was actually intimated to me by a Member of Parliament) as they offer quick gains to the individuals involved there-in as well as satisfying the politburo’s demands. These two areas of engagement I presume form the basis for any contract renewal that the head of the institution is definitely interested in.

By failing to do the obvious, the Eng Mutabazi led outfit has slowed down the pace set by Mr. Patrick Masambu the former Executive Director of UCC who is currently the Director General of the International Telecommunications Satellite Organisation (ITSO). Despite the massive hurdles he went through to set up this institution, Mr Masambu defied all odds to leave a healthy and globally acclaimed institution in place.

The latest gaffe has been the press release by UCC that orders Telecommunication service providers to verify all SIM card subscriber details within seven (7) days starting 12th April 2017. The communique advises the public to visit the nearest authorised telecoms service centres as well as utilising the *197#.

I can only shake my head in disbelief because whoever came up with this decision at UCC is out of touch with reality. Do they think that they are managing a home? Do they realistically expect even 50% of the Ugandans to get sorted within one week? Which world are these !#%&^396$#@ living in? (Dr. Nyanzi the queen of metaphors please come to my rescue here)

Now to Eng Mutabazi and your team, do you really believe that:

  • All Ugandans are within 7 days reach of a recognised Telecoms Service Centre?

  • All Ugandans will have got the information to pursue this activity within 7 days?

  • All Ugandans will have the money and time to make it to the various centres within 7 days?

  • All Ugandans have National IDs?

  • All Ugandans are utilising their cell numbers within the boundaries of this country?

  • All Ugandans have time to repeatedly go to Telecoms service centres in a bid to repeat activities they had already engaged in?

Take the example of this guy

kaabong

Meanwhile, like you can see, he at least might be able to afford the entire exercise financially. What happens to the many that cant afford it and also reside where he is currently working? [Pointing my index finger onto my bald head saying “COMMON SENSE IS NOT COMMON”]

Meanwhile of the seven (7) days given, four of them are taken up by the Easter Holidays. For a country that is over 70% Christian, why do you think they will leave their celebrations to attend to an exercise that was caused by your incompetence?

When will you get out of this gambling nature that seems to have become a part of your operational manual? I do believe that UCC as an institution has some very brilliant minds, a number of whom are known to me personally but the way the institution is operating as a whole, makes any outsider think it is a bunch of jokers. This should be a wakeup call to the appointing authority, at this rate, the efforts to attain Middle Income status are likely to be sabotaged by an inefficient Communication and Technology Sector whose regulatory agency seems to be operating in a reactive rather than proactive manner.

This seven day deadline is simply a poorly thought through decision that only serves to lay bare the incompetence of the institution we are meant to look upto for guidance. Could it be time for a total purge?

Let me go pick my orange tree seedlings and plant before the rains cease. I think I have had enough of this circus.

James Wire is a Small Business and Technology Consultant based in Kampala, Uganda

Follow @wirejames on Twitter.

Email lunghabo [at] gmail [dot] com

Other Articles of Interest:

HOW TO – Start a Chapati Business

Rolex, one of the CNN recognised world famous foods is basically a Ugandan Chapati wrapped around a fried egg. Chapati is one of the most sought after snack like foods by all categories of consumers.

chapati

Chapati as it is known in Uganda

Making and selling Chapatis is one of the businesses that many find easy to set up due to the low start-up investment costs as well as high demand for the product(s). It is however important to note that while you can run it as a standalone business, it is always wise to have two or three other complementary products alongside it in order to reap maximum benefits. Some of these products are Samosas (sumbusa) and Mandazi that have similar requirements for inputs. What is shared here can be similarly applied to other products like doughnuts.

What infrastructure do you need to effectively run a Chapati business?

  • Operating Table. Notice the concealed compartment. It is a pre-requisite when selling food products by the roadside in Kampala.

    OperatingTable

    Operating Table for a Chapati business

  • Charcoal Stove

    CharcoalStove

  • Saucepans (At least two big ones)

Saucepan

  • Frying pan (For preparing the chapati)

FryingPan

  • Bench (for customers to sit on while eating)

  • Plastic plates (for customers to use when eating)

  • Jerrycans (keeping a water reservoir for customers to clean their hands or even wash your utensils)

  • Basin (for mixing dough)

Key considerations when setting up the business

This is a basic, easy to set up business. However, one need consider the following issues:

  1. Business Plan: A basic plan can suffice. It ought to answer a few questions like target market, desired sales targets, long term outlook, product mix (are you dealing in chapati alone or a mixture of products), planned operation approach among others. If you feel encumbered writing it down, at least have some of these issues answered mentally.

  2. Recipe: For those that know all about Chapati, you definitely can tell the difference between a good and bad one. This usually boils down to recipe and of course workmanship. Considering that there are many chapati sellers especially in the key trading or residential areas, having an attractive recipe will guarantee you return clients.

  3. Location: In this business, location is paramount. It is essentially a roadside business whose ultimate goal is to prey on the gullibility of people going about their usual routines. You need to make it as convenient as possible for someone to part with that loose change in order to satisfy their hunger pangs. Common locations for chapati stalls are trading places with shops, restaurants and supermarkets; residential neighbourhoods; public transport stages as well as environs of bars.

    location

    Notice the strategic roadside corner location of this chapati business

  4. Raw Materials: Other than the earlier mentioned equipment, recurrent costs go to cooking oil, Wheat flour, baking powder and any other ingredients of your choice. Most of these are readily available in supermarkets and shops. Just make sure you purchase quality and unadulterated products.

  5. Products: Chapati can be packaged in different ways to form different products. You can offer a plain chapati, Rolex or even a Kikomando (Chapati mixture with beans)

    kikomando

    Kikomando, one of the best selling products

  6. Human Resources: If you do not plan to directly run the business, then you need to hire decent people or a person that will ensure you offer a very tasty product as well as manage customers well. Do not underestimate the kind of person you choose to play this role. They are the face of your business. Structure out a motivating payment structure. As opposed to a fixed salary, a sales oriented approach towards payment is likely to be more enticing.

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Some of the factors that attract customers to your chapati stall are;

  • A nice recipe

  • Good public relations / sales language. The way your staff talk to the customers especially ladies who happen to be the biggest customers is key.

  • Smartness. Ensure that you or your staff manning the stall is smart at all times.

  • Endeavour to keep the operating area as clean and free of insects like flies.

How can one invest in the Chapati business

One can venture into this business in different ways. Some of those that I have been able to identify are:

  1. Renting Space. You might be having a shop or premises that are in a strategic location by the roadside. You can simply rent out space to anyone who is interested in setting up a chapati stall and they are in position to pay something commensurate monthly.

  2. Hiring a Location and erecting key infrastructure. As seen earlier, the operating table can take on different designs as well as abilities. Some people have specialised in identifying customer friendly locations, erecting a shelter as well as the required operating table then renting out the facilities to actual chapati sellers for a daily rate. One of those locations I know of earns the landlord UGX 50,000/= daily!!!!!

  3. Acquire all the requisite infrastructure and set up a chapati stall. This would imply running the business in its entirety. It might involve you manning the stall directly or hiring an individual that you pay.

What is the sales outlook like?

The location in which I did the research from was in a Kampala suburb called Kyebando. It is not as busy as many of the suburbs I know. However, the sales figures were quite interesting.

One packet of Wheat Flour weighs 2 Kilogammes and on average produces 20 chapatis. The highest selling stall in that area consumes not less than 24 packets daily. The arrangement used is option two where the actual chapati seller hires infrastructure from someone else. He pays a daily rate of UGX 50,000/=. Considering that each plain chapati costs UGX 500/=, this guy should be earning gross revenues of at least UGX 240,000/=. This is exclusive of extra income that comes from Rolex and Kikomando sales.

Something definitely looks quite appealing. Don’t you think so? If I were to go into this business, I would focus on eventually setting up a chain of outlets using investment model II above.

Welcome to the Chapati business. I wish you the best in your endeavours.

James Wire is a Small Business and Technology Consultant based in Kampala, Uganda

Follow @wirejames on Twitter.

Email lunghabo [at] gmail [dot] com

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The disregard for Data Privacy in Uganda

In the late 90s, as a Systems Administrator for Starcom, one of the pioneer Internet Service Providers in Uganda, I had the privilege of managing the Email server and in the process got to know which email accounts were used by StateHouse as well as the Kabaka of Buganda. Out of pure professional ethics, not even once did I snoop to find out what kind of communication they were undertaking. As the overall administrator of the server, I had unlimited privileges that I could have chosen to abuse at will or in exchange for a few pieces of silver. That was then.

Close to eight years ago, I got to learn about this couple. They were so much in love with one another until the entry of the other girl turned things around. Rita couldn’t stomach it any longer and quit the relationship. Meanwhile, her boyfriend had other ideas. After failing to convince her to reverse her decision, he turned to stalking her. Philip had friends who worked for the Telecom company that his ex girlfriend was subscribed to. With their help, he tracked down her phone interactions in a manner that eventually proved disastrous to her new relationship. To-date, these scenarios are still common with telecom employees willfully playing the role of Judas. I have been told that for as little as UGX 50,000/= one can get phone records for any person of interest without needing a Police or Court order.

When it comes to the banks, someone I will call Mark has had banking records involving his credit cards and other transactions given to his wife without his approval. How she accesses the information is still a mystery to him. The bank in question is a leading international bank whose professionalism you would ordinarily not put to question. He is now scared because if his wife can easily get such information, then what happens in the event that someone who has ill motives makes a move for the same?

The case of Bank connivance in the death of an Eritrean Businessman in Uganda is very telling. The Inspector General of Police came out decrying the presence of a Mafia Network in the banking system. Airtel was recently too accused of abetting number plate theft. These are matters not to be taken lightly.

There has been a fresh demand by the Uganda Communications Commission to ensure that sim card registration is adhered to. In a recent press release, the to-do list had among others a requirement that, database reconciliation/verification to be done by operators in liaison with NIRA (National Identification and Registration Authority). This has caused a lot of concern. The depth of information that NIRA has about individuals is so much and if shared carelessly with other providers whose lackluster approach to confidentiality is well known, the threat on individuals is likely to be made worse. Whereas thugs have always had only phone records to contend with, now they are likely to have residential information, next of kin thereby making it easier for them to plan kidnaps for ransom.

I have a bone to pick with UCC for the haphazard manner in which some interventions are undertaken. After huffing and puffing about sim registration and fines to Telcos that do not comply, many of us were under the impression that this matter had been settled as far back as 2015. It is a shame (a very big one) to realise that it had to take the death of a high profile individual for the same institution to bring this matter to a close. I cant shake my head enough to show my disappointment. However, that is a story for another day.

Now that private data is being aggregated with the potential for sharing it with providers in future, what should be done to ensure that we minimise its abuse?

  • Enact a Data Protection law

This is a law that prohibits the disclosure or misuse of information held on private individuals. The cases cited in this article can easily be pursued legally once the appropriate laws are in place. The Data Protection and Privacy Bill 2014 already has the desired provisions. These include;

Section 27 Unlawful obtaining and disclosure of personal data

(1) A person shall not knowingly or recklessly –

(a) obtain or disclose personal data of the information held or processed by a data controller; or

(b) procure the disclosure to another person of the information contained in personal data.

(2) A person who contravenes this section commits an offence and is liable on conviction to a fine not exceeding one hundred and twenty currency points  or imprisonment not exceeding five years or both.

Section 28 Sale of personal data

(1) A person shall not sell or offer for sale personal data of any person.

(2) A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding one hundred and twenty currency points or imprisonment not exceeding five years or both.

NB: Please note that One Currency Point is equivalent to UGX 20,000/=

  • Limit the amount of information shared with third parties

UCC should ensure that going forward, NIRA does not share all users’ information with the Telcos or any other third parties. This can be made possible through the use of software interfaces which limit the kind of access one can have to the National ID database. This is something within the means of NIRA to achieve in a short a time as one week.

Other than that, I look forward to the day when employees as well as companies whose staff are involved in illegal use of private consumer data are made accountable for their ill deeds. Many are suffering out there silently having been victims of this unprofessional conduct. Others have had to pay for it with their lives. We cannot afford to wait any longer.

James Wire is a Small Business and Technology Consultant based in Kampala, Uganda

Follow @wirejames on Twitter.

Email lunghabo [at] gmail [dot] com

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