Tag Archives: James Wire

Stifling Economic Progress – Uganda can do better


Stifling is defined as, making one feel constrained or oppressed. Other terms for it are: Suffocating, Stagnant, Breathless, Unventilated and Confined. Today, I could say, “The Government of Uganda is stifling the basic survival of its economically active population.”

It is a known fact that jobs are hard to come by in this country and people have been encouraged to seek opportunities through self employment. Never mind the fact that those parroting this talk are belching daily on unfairly spent tax payers money.

As a business owner, for the last 21 years I have always encouraged my staff to set up alternative income generating ventures to insulate themselves from the very unpredictable economic environment we face as a nation. I am sure what I am talking about is best appreciated or understood by those who either are lacking jobs, self employed or have been hit by job loss. For a regular salaried and pensionable person, you could as well take this as a rant of frustration.

The growth of technology especially the internet has helped open up numerous avenues to facilitate multitudes of Ugandans get economically active. What the likes of WhatsApp, Twitter, Facebook and Instagram have done to revolutionise the business setup of this economy can never be underestimated. We might have kicked off using social media for gossip but that is no longer the case.

Social media has become a business highway for the many micro entrepreneurs trying to earn in order to fulfil their dreams. Many are buying and selling simple items like shoes, clothes, food, household items, spare parts, among others using social media. Others are selling services like writing articles/blogs, marketing, offering counselling, business support, monitoring, proposal writing, managing payments etc. The list is endless.

The nation might have been faced with a security threat that necessitated some level of drastic actions to avert but not to the extent of shutting down the internet in its entirety like it was done on the 13th of January 2021, a day to the nationwide elections.

You do not seal yourself in a vacuum just because you don’t want to breathe in toxic air. While there was a concern by the powers that be whose priority was regime preservation, it shouldn’t come at the cost of impoverishing the rest of society. Many of us do not earn regular salaries and our income on a daily basis is what makes us exist.

A colleague that I once worked with currently running an online electronics sales platform called me up two days back and his tone was way unlike him. It had this defeatist feel about it and when he told me how the internet shutdown due to elections had grossly affected him, I could feel it. He then asked me what organisations like The Internet Society of Uganda, The ICT Association of Uganda, National Information Technology Authority – Uganda have to say about this.

No sooner had I got off the call, than two others I know shared their frustration of believing in Uganda as their place of choice to chase their dreams of technological revolution. I nearly cried because I have been through this kind of frustration before and seeing it recur is simply a pointer to a gross sad state of affairs.

We are reeling from the effects of Covid-19 that have greatly diminished our incomes. As we mutate with the hope of guaranteeing our survival, those meant to steer the ship called Uganda are simply out of touch with reality. They may be able to comfortably pay school fees for their children anywhere in the world but that doesn’t mean that we all can even pay school fees with ease in local neighbourhood schools. Some people can’t even pay rent, let alone feed families simply because an income of a paltry UGX 20,000/= daily has been put to a halt.

For a fully fledged minister to come up and start threatening Ugandans using Virtual Private Networks (VPN) with arrest is simply a sign of a thought process in limbo. Hon. Peter Ogwang, as the State Minister for the Ministry of ICT and National Guidance, you have alot on your hands than run around like Tom chasing Jerry in the cartoon Tom & Jerry.

People simply want to survive, that’s why they use the VPN. Unfortunately some quarters are obsessed with viewing the VPN from political lenses while the majority of us are viewing it with economic lenses. Allow us breathe.

In my mother tongue, Lunyole, we have a saying that loosely translates to; When you press the nose hard enough, it ends up bleeding. Don’t make us bleed. Enough is enough. Allow us fend for our families the best way we can, after all, the responsibility of promoting business growth among the locals has been discarded in preference for foreigners.

Time is usually the best teacher. Repressive moves especially when misguided have a way of bouncing back to the sender. We all need a country that makes us happy and proud of being a part of it.

God Bless Uganda. I Love Uganda. For God and my country.

James Wire

Technology and Business Consultant

Twitter – @wirejames 

Email – lunghabo [at] gmail.com

The Wire Perspective – http://wirejames.com

Dairy Milk, the woes of Ugandan exporters


Uganda is a naturally gifted agricultural country. When you see the volumes of production under the largely subsistence approach that characterises our agriculture, the potential is immense. One sector whose potential has been proven is the Dairy Sector.

Milk production in the country experienced a nose dive in the 1970s all the way through the 80s. We relied alot on imports especially of milk products like powder milk, cheese among others. The Dairy Corporation used to collect and process 20 million litres of milk per annum in 1972 but this dropped to an all time low of less than half a million litres in 1983.

Screen Shot 2020-05-15 at 10.14.52

Fresh Milk collection by Dairy Corporation 1980 – 1991 (‘000 litres) – Source EPRC

When the Government came up with the Diary Master Plan of 1993, it was a key turning point closely followed by the enactment of the Dairy Industry Act, 1998. As a result of these interventions, the industry monopoly enjoyed by the Dairy Corporation was removed, allowing other private players to venture into processing.

The Dairy market in Uganda is dominated by small scale dairy farmers who contribute 80% to the overall milk production in the nation followed by 20.0% from the large scale dairy farms. Their production is mainly based on low input traditional pasture production systems making the country one of the few low cost producers in the world.

Liberalisation of the sector has seen annual production grow from 9.3 million litres in 1990 to 2.5 Billion in 2019. Production growth is estimated at 18% per annum. This shows the high prospects the sector holds.

Some of the players include; Brookside Dairy, Jesa Farm Dairy, Pearl Dairy Farms, Amos Dairies and GBK Dairies. Due to local market limitations, they have ventured into the export market with Kenya being the leading destination. A move that seems to have disrupted the dairy industry in that country.

According to the Dairy Development Authority (DDA),exports stood at US $ 60 million in 2016 and increased to approximately USD 130 million in 2017/18, a figure expected to hit USD 500 million in a few years from now if trade conditions stabilise. The increase in the net exports has been as a result of increased compliance and meeting standards of Uganda’s milk and milk products on both regional and international markets due to efforts by DDA in regulation and quality assurance. Dairy exports mainly go to EAC, COMESA countries and SADC SADC, UAE, Nigeria, Syria, Egypt, Omen, USA, Nepal & Bangladesh. The exported dairy products include; UHT milk, ghee, casein, whey proteins, and butter oil among others

The East African community was founded to among others foster a large regional market for goods and services through free trade. However, over the years, trade conflicts have cropped up between some member states. In 2019, Kenyan Egg traders came out in arms over the cheap imported Ugandan eggs and wanted a ban placed on their importation but the government refused to cave in to the demand.

Following the assault of dairy products from Uganda on the Kenyan market, tensions begun simmering as the local dairy sector struggled. This culminated in the slapping of a 16% Value Added Tax on Milk imports from Uganda.

Rwanda had already stopped milk imports from Uganda heavily impacting some companies like Pearl Dairy Farms whose Lato Milk product was on demand.

Having nurtured the Dairy Sector from insignificance to the current successes it is enjoying, it would be foolhardy for the Government of Uganda to simply let it struggle through these challenging waters without intervening. Access to a large regional market is an attribute used to lure investors. With an annual production potential of 10 Billion litres of milk the sector is set for further growth. These non tariff barriers are likely to prevent further investment and kill budding businesses that could have used the EAC market to become significant global industry players.

The onus therefore is with the regional governments to come together and address this and other trade issues being affected by Non Tariff barriers.

James Wire

Small Business Consultant

@wirejames on Twitter