Tag Archives: James Wire

MTN’s “Unlimited” Limited Internet

I’ve been on the wrong side of various service providers as a result of my open expression of experiences while consuming services. It therefore came as a surprise when MTN Uganda called me up and requested that I try out the MTN Unlimited Internet Premium service.

Unlimited is a term that essentially means unrestricted, unconfined, boundless or infinite. So, in the real sense of the word, this service is not really unlimited. The package offers you internet access of upto 3 Gb on a daily basis. So, there is actually a limit only that it’s quite high for the average Joe to fully consume.

Being one with a mobile office, I rely a lot on mobile internet services to render my services. I must admit that I was one of those who were skeptical about this MTN offer until I tried it out.

In my days as a kid, I always demanded stuff like sweets from dad and mom whenever the opportunity presented itself. Today, my children demand data !!!! It is so serious that even when I claim not to have data, they mobilise resources among themselves and load a data package to see them through for a day or so. The kind of game apps they access can strain the regular data packages. This is another reason why I gladly wanted to test this service. How easy is it to deplete the 3Gb allotted daily?

I gave my family the challenge to deplete the daily allotted data and this meant unrestricted use of the internet. Where I used to limit them watching videos and TV shows online, this time round, they had a blank slate. They could hardly believe their ears. We all tried and worked towards this feat without success.

My initial observations show that it’s an always on service with much less downtime than my traditional data provider.

Consuming 3Gb of data is no mean feat especially if you’re not the type to always be at the computer. I tried watching all sorts of videos, encouraged my children to play online games, watch online study lessons, chose to upgrade software but alas, still failed.

This data service works well for urban connectivity, however, in rural settings, there are still challenges. I’m writing this article on a sojourn in Butaleja district and have had to do without internet while in my gardens and at home. Most urban dwellers can do with just about any service provider since their services are usually decent in such locations. It takes one a journey to rural locales to establish whether your data service is worth its salt. MTN Uganda has to find ways of improving 3G coverage nationwide.

There has always been this talk of lost data and I blogged about it before. It’s still a big problem apparently. I can authoritatively state that six (6) out of ten people I have interacted with have complaints about unexplained data loss. As a matter of fact, I personally transitioned from buying monthly data bundles to daily ones simply because of the ease of monitoring my data consumption. Imagine loading 1Gb of data for a month and by the third day it’s finished.

If you’re a power user and want to save yourself the data loss gymnastics, then I strongly believe opting for this “Unlimited” MTN Service is ideal. The cost of UGX 330,000/= monthly for the Premium option however leaves me wondering whether it is pocket friendly enough. However, there is the Basic option that goes for UGX 179,000/=. Maybe, I will consider subscribing for the latter.

Overall, my experience tells me, the MTN “Unlimited” Internet is worth having for the internet savvy.

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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Is D9, an Investment Fraud or not? Watch out!!!

Investment Fraud is defined by the Cambridge dictionary as the illegal activity of providing false information to someone so that they will invest in something.

You may or may not have heard of the various schemes promising heaven on earth returns to investors. One of those that has picked my attention in the recent past is D9. Rumored to be registered in Brazil and Hong Kong, it seems to have taken the gullible folks in Uganda by storm. Matters have been worsened by endorsement from men of the robes like Pastor Mark Kigozi of Real Life Church.

In this article, I will not dwell on how D9 works since I have no intention of being their salesman. However, I want to share with you the reader warning signs of an Investment Fraud. I hope by the time you’re done reading, you’ll be in a better position to tell whether D9 is a fraud or not.

Investment frauds are typified by all or some of the following characteristics;

  1. The guarantee of consistently good returns. Business investments are no fairy tale. A business opportunity may offer you wild returns in one year and total losses in another. NO legitimate business in the world will always guarantee you consistently good returns. Even drug dealers make losses occasionally when their consignments are tracked down and confiscated by the authorities.
  2. Unclear investment products or services. If you cannot point a finger at something straight and obvious that generates revenue for the business, just know there is a problem. I recall TelexFree that used to promise people money for simply logging in daily and placing adverts into a web system. The company apparently claimed it made money through the sale of calling cards. Today, the scam founders are facing litigation in the USA as millions bleed as a result of their lost savings.
  3. Unclear company information. A legitimate business usually is very straight up with information pertaining to its history, track record, business operations, tax filings among others. A decent amount of this information tends to be easily accessible on the company website. In the event that you cant readily get such information, step back and think twice.
  4. Pushy sales brokers. Anytime you are confronted by overly aggressive sales brokers who want you to make a decision instantly, let your sixth sense kick in. Why should you not be given an opportunity to go back home, consult or even think through the proposition?
  5. Unexpected phone calls or messages. You might all of a sudden be contacted by a long lost colleague who then urges you to meet up in order to discuss some hot business opportunity. Think twice. I once was sent a message by a young man I had interacted with over 6 months earlier. He insisted that I meet him in a certain office and I duly obliged. Upon reaching, I found a herd of people seated being taken through the motions of how to join a certain pyramid scheme whose name I have forgotten. My stay didn’t last more than ten minutes. Ever since then, I never respond to his calls and messages when he gets in touch.
  6. The promise of high returns in a short period. An investment offer that promises you crazy returns (usually many times above market rates) needs checking. In most cases, compare this offer of returns with the alleged product or service on offer.
  7. Low Risk, No Risk or Guarantee. Once you are presented with an opportunity that has any of these three hallmarks, it helps to open your eyes wider. Like I said earlier, there is NEVER a 100% guarantee in any legitimate business.
  8. The temptation of being part of an exclusive investment organisation. Whenever there is a promise of exclusivity, chances of a fraud scheme being engineered are rife. Even when you may make some money as an early adopter, that will not negate the fact that you are part of a scam whose pack of cards will fall sooner than later.
  9. The investment offer is based overseas. Most scams are usually offered from remote locations. There are countries that are notorious for hosting these scams and Brazil is one of those. They carefully craft their operations to ensure that they evade jurisdictions with serious financial systems to detect fraud. This also allows the founders to eventually walk away scotfree when the pack of cards crumbles (notice I used the term when and not if).
  10. They approach you in form of seminars and sales people representing schemes. Have you been called for a seminar or presentation in a hotel or large office of sorts? Have you been flooded by a team of marketers who promise you only the very best if you part with your hard earned or sometimes borrowed money? Offering guarantees? Insisting that you sign up before the seminar ends? Well …..
  11. They prey on your membership of a certain group. Winning trust is one of the key tactics of fraud promoters. This is the reason they strategically target groupings of people like church membership, sports fraternities, professional bodies etc. It is no wonder that people like Pastor Mark Kigozi are thriving with this D9 arrangement. Having a large fellowship of believers who outrightly believe in every word he mentions (fully convinced that it is the Holy Spirit at work), renders the success rate in such a congregation much higher.
  12. Diverting attention. When an investment scheme focuses more on gifts that success offers eg promoting a high life, good cars, opulence among others then only part of the story is being told.

I firmly believe that if your investment opportunity checks out with at least three of the issues I have shared here, then it’s time to rethink. Seriously!!!

I know poverty or the lack of money is making many of us gullible to the nearest offer of hope to become the next millionaire but do not forget that true wealth comes from working diligently.

King Solomon had the following to say about wealth:

Proverbs 12:11– “Whoever works his land will have plenty of bread, but he who follows worthless pursuits lacks sense.”

We all have land that God has given us. That land comes in the form of skills, talent among others. He wants us to utilise it as opposed to running around like headless chicken looking for the next big thing that someone else is introducing.

Proverbs 21:5- “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.”

A diligent person is one who works hard, is careful and thorough. Surely, does this scripture rhyme with those get rich quick 100% guarantee schemes? Youmay not be a Bible believer but one thing you cannot deny is the wisdom its scripture offers us.

Finally, DO NOT BE DECEIVED by spiritual leaders, apparently wealthy admirers of yours, family members or anyone that tries to get you into subscribing to something that has all the hallmarks of a scam. Keep that money of yours. It could be put to better use.

I hope I’ve saved someone.

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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Hon Tumwebaze, Uganda should venture into Outer Space

I am one of the numerous Ugandans who expect little in terms of cutting edge knowledge and proactive initiatives from our distinguished Ministers. A good number of them are viewed as partaking of political rewards as dispensed by the Fountain of Honour.

After being entertained by pedestrian reasoning from the likes of Hon. Anite Evelyn one would be hard pressed to expect anything better from the current lot of ministers. However, I was taken back when I came across a statement that Hon Frank Tumwebaze made in the Parliament of Uganda in response to a query by Hon. Cuthbert Abigaba. I must admit that I’ve had to eat my words and change my attitude abit. I now believe there are some ministers and Members of Parliament worth their salt in Uganda.

The Minister had been tasked to share plans that the Government of Uganda has to tap into the vast opportunity provided by the Upper Air Space. In his response, he made an effort to point out a number of issues that got me and my fellow amateur astronomers excited. While it definitely fell short of many things, we agreed on one thing, it’s a good start and commendable line of thinking.

The use of the term Upper Air Space would literally restrict the kind of information the minister shared, if we are to go by some of the definitions out there. However, I would like to believe that what Hon. Abigaba wanted to know about was basically our plans as a country to tap into the opportunities offered by Outer Space.

The Minister’s full statement is available here in which he points out a number of issues that are being considered both as a nation and Africa as a whole.

According to Wikipedia, Outer space is defined as the near vacuum that exists between celestial bodies. Celestial bodies are natural bodies located outside of the earth’s atmosphere like the Sun, Moon, Jupiter, Mars, the numerous stars and planets that litter the sky etc. Scientists refer to the point of separation between the Earth’s atmosphere and Outer Space as the Karman Line. This is located 100km from the earth’s surface.

Karman-Line

Depiction of the Karman line. Image courtesy of Derekscope

Countries like the USA, Russia, China and India are already trailblazing in the space exploration arena and some people have been left asking why we mind so much about investing money in space exploration when hunger and poverty are still rife in our countries.

Uganda has largely been passive in this endeavour and this can be attributed to the overwhelming need to address survival basics for our citizens as well as a general lack of guidance in this regard. A discussion on outer space should not be restricted to satellites and communication technologies. We need to be looking beyond that. Like the explorers of yester-years who traversed the world by ship searching for distant lands and peoples, the opportunities outer space offers us today are;

  • Better monitoring and management of planet earth. We can be in position to track a lot of aspects about this planet including among others weather. This monitoring will definitely help us better manage the resources at our disposal as well as right the wrongs that have been done over the years.

  • Explore alternative planets/locations for settlement. Have you ever imagined that one day man shall be an interplanetary specie? Just like you have Ugandans living in Uganda and others in the U.K, we cannot rule out a time when we shall have humans living on Mars or dwelling in floating cities in space. Earth as we know it might eventually become hostile hence the need for us to establish alternative locations of abode in the universe where we can set up ourselves afresh in the event of a catastrophe on mother earth. You might for example not be aware that 50Km above the surface of the planet Venus, one finds an atmosphere that is very earth like. This could be one good candidate for a space colony through the use of floating cities.

  • The Solar System that we are a part of is just one of the millions of solar systems in the Milky way Galaxy. The Milky way Galaxy is just one of billions of Galaxies in the universe. Have you ever considered the possibility of other intelligent life forms existing elsewhere in the Universe? Sincerely, do you really believe that God only placed man in this universe? We may have been the only ones he made in His own image but we cannot rule out many other human like beings He created that are not necessarily in his image.

If we are to remain relevant to the future, as a nation we need to stand up and be counted. We have to join the Space agenda as fast as possible. Uganda has entry points that can be utilised to get into this arena if only we took time to educate ourselves more on this subject matter.

Located at the Equator with a big water body in the form of L. Victoria, Uganda is an ideal location for a Spaceport (used to launch rockets to space).

The earth is always continuously spinning on its axis. This spin can act as a boost when launching rockets into space. The experience is similar to someone giving you a push before you dive into the swimming pool. The strength of the push determines how fast you get into the pool. Due to the oval nature or the earth, in the 24 hours it takes for it to spin on its axis, a spot nearer to the North or South Poles moves a shorter distance than one at the equator.

earth_rotation

Earth’s rotation.

An object at the equator in Uganda already has a rotation speed of 1670 Km/h as opposed to one in Norway at about 800Km/h. Since the surface of the earth is travelling faster at the equator, a launch in the same area implies that the rocket takes off at a faster speed and reaches orbit much quicker. This has a lot of implications towards minimising the cost of launches.

The presence of Lake Victoria as a water body is ideal. These water bodies are favoured near launch sites because they tend to offer a good backup of water supply in the event that a fire erupted at the spaceport. Remember rocket launches are basically controlled explosions. Something could go wrong at the launch pad. SpaceX had a pre-launch explosion in September 2016. John Young (American Astronaut) once said, “Anyone who sits on top of the largest hydrogen-oxygen fueled system in the world, knowing they’re going to light the bottom, and doesn’t get a little worried, does not fully understand the situation.”

Uganda being on the Eastern side of the African continent is also another compelling factor. Most space launches (at least for geostationary orbit satellites) tend to take on the easterly direction during launch. With the Indian Ocean not too far, the stages that eject during flight can drop into the ocean.

Today, our Mpoma Satellite Earth Station is largely idle. It could easily be revived and used to track satellites most of which are largely cycling around the equator.

On the Human Resource front, as a country, Uganda has been acknowledged for having a large youthful population. This coupled by the high numbers of technology graduates being churned out of school is another mouth watering opportunity that awaits exploitation. These brains can be put to use in an elaborate space programme.

ISRO, the Indian Space Research Organisation has not engaged in any major inventions but simply utilised already available knowledge in the public domain to make leaps in the Space arena. They have sent probes as far as Mars at a fraction of the cost of NASA to study more about celestial bodies. This is encouraging news and implies that Uganda can easily follow suit.

For starters, Uganda’s Space Agency can count on the massive backlog of satellite launches to make money that would then fund other activities in this regard. A thorough strategic plan is required prior to taking this leap of faith.

Once again, Hon. Tumwebaze, I thank you for the insight you and your team has shown. I believe there are Ugandans out there ready to work with you to turn this Outer Space fantasy into a reality and appease visionary MPs like Hon. Cuthbert Abigaba. Please join the Uganda Astronomers’ WhatsApp group or the Facebook Page for starters so we can engage from both a civil and technical perspective.

“The probability of success is difficult to estimate; but if we never search, the chance of success is zero,” Giuseppe Cocconi and Philip Morrison’s paper ‘Searching for Interstellar Communications’ that was published in September 1959

Let us start NOW!!!

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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Why Nakumatt struggles as Capital Shoppers and others thrive

While browsing the Twittersphere, I came across a thread in which the issue of Nakumatt Supermarket’s limping performance in Uganda was being discussed viz a viz local Ugandan Supermarkets.

Ms. Nancy Kacungira loudly wondered what the likes of Capital Shoppers are doing right to stay in business to which the renowned economic affairs analyst Dr. Ramathan Ggoobi duly responded by stating, “Alot. Location, good supply chain management (high fill rate), and damn, I’ll say it …. loyal ‘sectarian’ clientele.”gobbi_tweet

The last part of his submission is what I didn’t find worthwhile. So, as a supplier of supermarkets, I went ahead to respond as follows, “They pay us well and promptly. Including Quality (Supermarket). I find the assertion of “sectarian clientele” as lame reasoning by @rggoobi.”wire_response

Its eight years since I started supplying supermarkets with products and this has given me some time to appreciate the business. A supermarket is no different from a warehouse where suppliers bring their products for onward sale to customers. The only difference is that Supermarkets have to invest in a few things that make the shopping experience of a customer conducive. Their key issues of concern are usually branding, location, management systems, market identification and interior décor.

The success of a supermarket is hinged on three core factors as indicated in the illustration below.Supermarket_Success

When Uchumi joined the Ugandan supermarket space over ten years ago, they heralded a new era that saw them take supermarket branding to a new level all together. The supermarket enjoyed market leadership overnight, largely a result of the corporate buzz created whenever anything new is launched as well as the significant presence of Kenyan professionals in Kampala. Nakumatt followed suit years later and it too caught the attention of the Ugandan market by launching 24 hour shopping services. Within a short while, it had grown and surpassed Uchumi as well as other leading local supermarkets like Quality and Capital Shoppers.

During all this time, the local supermarkets must have been learning serious lessons from these foreign entrants. Nakumatt, Uchumi and Tuskys, all Kenyan supermarkets by origin had the money, systems, branding and rode on the wave of a significant presence of Kenyans in Uganda to kickstart their business. They also won over many Ugandan shoppers and a simple way to tell that is by studying various suppliers’ delivery schedules that largely rotated around these supermarkets.

So, the factors Dr. Ramathan Ggoobi attributed the success of Capital Shoppers to like Location were definitely considered by the likes of Nakumatt. Take a look at Nakumatt’s branches at Oasis Mall, Bukoto, Entebbe, Mbarara, Bugolobi (although they goofed up by placing another branch at Village Mall in the same vicinity). Consider Uchumi’s branches that existed at Garden City, Nateete, Freedom City, Kabalagala and Gulu. They were well thought out and always outcompeted neighbouring supermarkets. But somehow, they went bust. Uchumi is now spoken of in the past tense having fled with Billions of Shillings owed to local suppliers. Nakumatt is in intensive care unit, trying so hard to stay alive and relevant. How did they get to this?

I will rule out the economy because the same economy is where you find other thriving supermarkets like Capital Shoppers, Quality Supermarket, Mega Standard, Ssombe Supermarket, City Shoppers Supermarket, Senana, Cynibell among others. The customers are still existent considering that they are the very ones patronising the currently well performing supermarkets.

In my view and as a supplier, the one aspect of the business that these supermarkets did ignore and are now paying heavily for is the Supply Side (read as Stock in the diagram shared earlier). This is in tandem with Dr. Ggoobi’s point on good supply chain management.

A supermarket’s shelves are what they are because of the goods that suppliers diligently avail for sale. Without these goods being supplied, they remain empty and useless to any consumer. Most supermarket suppliers never get credit from their raw material suppliers prior to producing products for the supermarket. However, when it comes to supplying the supermarket, they are required to do so on credit. The credit terms range from a few weeks to two months. Consider that often times, the supermarket pushes the supplier to offer significant discounts which are hardly passed on to consumers. In essence, the supermarket receives an interest free loan since after sale, they can still re-use the supplier’s money on other activities of their choice.

Suppliers are usually resilient and able to patiently wait until the due dates promised for payment. Sometimes, the due date is not honored by some supermarkets and suppliers have to make multiple attempts and trips to get paid. This is where the likes of Uchumi, Nakumatt and Tuskys went wrong. They knew that being “large” and “credible” players in the market, the suppliers were at their mercy. Wrong!!! This perception might have been true for a while but as word spread through the networks of suppliers about their financial dishonesty, one by one, we begun pulling out of making supplies. Eventually, the shelves begun starving of our products and customers started noticing. This proved one thing, suppliers are as important as the consumers.

Another aspect is the shoppers’ psychology. The reason a good number of urban dwelling Ugandans abandoned the small shops in preference for Supermarkets was the ability to find everything they needed in one place and at a competitive price. This expectation can only be met when the supply chain is very fluid. So, by letting down their suppliers, these supermarkets once again exposed themselves and could hardly meet this expectation. End result? Customers begun gravitating towards alternative supermarkets that fulfilled this need. Take the case of a battered Uchumi, in its last days at Garden City mall, Capital Shoppers opened up a branch right below Uchumi’s premises and within no time, it was attracting a much bigger crowd. A relative of mine once intimated to me that he was fed up of going to that Uchumi branch due to the lack of a wide range of goods for sale. He felt so relieved when Capital Shoppers opened up. This too further cements the supply chain factor.

Now, back to the insinuation by Dr. Ggoobi that Capital Shoppers is thriving because of a “loyal ‘secterian’ clientele.If indeed this is worth noting as a reason, does it also imply that Nakumatt’s failures are attributed to the sudden absence or exit of a loyal sectarian (Kenyan) clientele? It is an open secret that Kenyans loved patronising Uchumi, Nakumatt and Tuskys. These very Kenyans are still around and their numbers have probably grown. Why is it that these three supermarkets have either closed or are limping in this market?

I do shop a lot at Capital Shoppers and Quality Supermarket but have not seen any sectarian tendencies in their clientele. I would be hard pressed to point out that the majority of shoppers “appear” to come from one region of the country.

Lets face it, the Kenyan supermarkets came in with a lot of SWAG and knew they would steamroll the local market in a bullish manner. While they appeared to be scoring early successes in this regard, their local counterparts used that time to re-invent themselves and learn a few things from the competition. The founders of Capital Shoppers and Quality Supermarket are very hardworking modest living Ugandans who started off in very humble ways. Their continued success even during this trying time of the economy can be largely attributed to the respect they accord their suppliers as well as being able to continuously learn and unlearn.

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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Stolen National ID Data ~ Questioning The New Vision’s Agenda

The headline on the front page of the Sunday Vision screamed, PANIC AS NATIONAL ID DATA IS STOLEN. I dropped all I was doing to quickly get myself a copy of the news paper. Being one of those people that have continuously cautioned our government over its handling of electronic data, I was only too eager to see what had been done wrong this time round.

vision_headline

The screaming Sunday Vision Headline

The title of the article gives one the impression that the folks at the National Identification and Registration Authority (NIRA) were caught napping on duty.

In the article, a one Norbert Kamwebaze was allegedly paid twice for work he did for Roko Construction with the second payment being dished out to an imposter who presented an ID card to Roko that had all his details save for a difference in the face.

The article starts off with a clear indication of the agenda the authors had; “Panic has gripped members of the public after it emerged that confidential data that Ugandans submitted to NIRA could have landed in wrong hands….” Using a very basic example, we have had forgery of permits for a long time in this country where someone lifts all the information of a legitimate permit and only changes the face to reflect his. Why has there never been any doubt cast on Face Technologies over our data? I was irked by the quick conclusion being insinuated in the article yet the details of the story indicate that suspicion should first be cast elsewhere.

Let us look at the issues raised so far and what they mean;

  • Mr. Kamwebaze was contracted by Roko construction to do a job for UGX 51 Million Shillings

  • Upon completion of the job, he was paid in full but not before producing proof of his identity by presenting a National ID which was duly photocopied.

  • Mr. Kamwebaze proceeded to bank the cheque on his account in Barclays bank and it was cleared.

  • A few days later, another person bearing a similar ID appeared at Roko for payment and was issued a cheque for payment.

This is where the story gets an interesting twist. Roko as a company has decent accounting systems in place with well set processes and procedures. I have done work for them before and know that the point persons one deals with when it comes to finances are limited and they usually know even off head who has been paid. The issuance of cheques follows some fairly lengthy procedures and this makes me wonder how a second cheque could have been issued without internal connivance. Is it possible that by coincidence all those who handled the first payment issued were never available when the impostor turned up?

  • The double payment was discovered by the Roko top management.

This is already a pointer that the lower level staff have some serious questions to answer.

  • The impostor opened up an account with the same bank, Barclays using the same bio data as Mr. Kamwesigye, went ahead to ensure the account had the same bank balance as that of the legitimate Kamwesigye and two days later, deposited the cheque of 51 Million. Upon maturity, he withdrew all the money.

This raises some interesting questions. They are:

  1. Could it be that the banking software used by Barclays has no ability to detect duplicates? How could two accounts with similar bio data exist yet having different photographs? Shouldn’t a flag have been raised internally at least first with the Systems Security team?

  2. How did the impostor get to know the details on the legitimate Kamwesigye’s account including bank balance? Was he working with an insider in Barclays? Could there have been collusion between Mr Kamwesigye and this alleged impostor?

Back to the National ID, no where in the article does it indicate the trail to NIRA. There is a presumption that the NIRA database could have been hacked to get this information but this does not appear to hold much water considering that there are still many other ways one would have accessed this ID information. Based on my assessment, these are the first areas of suspicion before casting NIRA in bad light:

  • The impostor could have worked with staff at Roko who availed him the ID information since they already had a photocopy and considering that he picked his money after the real claimant had already got his.

  • The real Mr. Kamwebaze could have connived with the impostor and come up with the new ID that the impostor used.

  • The impostor could have tracked Mr. Kamwebaze and been able to get access to his National ID without his knowledge. Thereafter, he hatched out his plan.

At this point, unless further information is availed showing complicity by NIRA, I am inclined to believe that this was more of social engineering than hacking into the National ID Database.

It is on this note that I would like to register my disappointment with the New Vision for falling prey to the sensationalist headline approach typical of the reckless Ugandan tabloids.

One positive though the article brings out is the need for our public institutions to guard against data pilferage. Remember, the weakest link in any IT systems is the human being. Employ professionals who know what they are doing and are willing to stand by a pre-set code of ethics. We shall minimise the likely occurrence of such.

Eid Mubarak to my Muslim brothers and sisters.

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

Follow @wirejames on Twitter.

Email lunghabo [at] gmail [dot] com

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

Other Articles of Interest:

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

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.

hr

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

Other Articles of Interest:

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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