DFCU’s pre-tax profit fall 67.8 percent in 2021

KAMPALA – Business for DFCU was mild last year as the institution’s gross profit curve fell by a hefty 67.8 percent, blamed on rolling lockdowns brought on by the global pandemic, the bank said.

In a report, the lender said their profits for calendar 2021 came crashing to only Shs 10 billion, from Shs 32.6 bln the year before.

“In our opinion, the accompanying financial statements are consistent, in all material respects, with the audited financial statements in accordance with the Financial Institutions Regulations,” the bank’s auditors, global group Ernst & Young said in remarks to the report.

Today was the deadline for all of Uganda’s commercial banks to report for the financial year that ended on December 31, 2021.

DFCU’s customer deposits fell mildly to Shs 2.3 trillion for the period under review, from Shs 2.6 trn in 2020.

Non-performing loans rose sharply to Shs 274 bln – nearly double the Shs 94 bln seen in 2020.

Bad loans written off also went up to reach Shs 37.6bln in 2021, almost three times 2021’s Shs 14 bln.

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Bank for dairy farmers; health insurance for co-ops to be launched in India

INDIA– Union Cooperation and Home Minister Amit Shah will inaugurate the mega cooperative event tomorrow April 1, 2022 at Palace Grounds, Bangalore. During the conclave, he will launch the Logo of Nandini Ksheera Abhivrudhi Bank.

A novel concept to boost the income of dairy farmers, Ksheera Abhivrudhi Bank has an allocation of Rs 100 crore made in the budget. The order in this regard would be issued soon, said the Chief Minister interacting with the media.

It will be Shah’s first co-op event in Karnataka after becoming the Union Cooperation Minister. The program is being organized by the Cooperative Department in collaboration with many apex co-op bodies of the state.

Over 9,000 co-operative leaders are likely to participate in the event. The short documentary on the growth of the cooperative movement in India and Karnataka will be shown on the occasion.

Besides Shah, Union Finance Minister Nirmala Sitharaman, MoS Shobha Karandlaje, Karnataka Chief Minister Basavaraj Bommai, Cooperation Minister S T Somashekar, Agriculture Minister B. C. Patil, Minister for Parliament Affairs Pralhad Joshi, Ex-CM Siddaramaiah and other cabinet rank ministers will grace the occasion. Many local cooperators representing different apex cooperative bodies of the State will attend the event.

Besides the Ksheer Abhivridhi Bank scheme, Shah would relaunch Yashaswini, the health insurance scheme for members of cooperative societies.

Karnataka Chief Minister Bommai said, “Shah is working for reforms in the cooperative sector, will be visiting the state to attend a large meeting related to ‘Ksheerabhivruddi bank’ that we are planning to launch, aimed at giving a financial boost to the dairy sector that will increase farmers income and provide them financial support.

“Milk Cooperative Societies in the State have annual revenue of Rs 36,000 crores. The State government has decided to establish a Milk Producers Bank with an intention to ensure that the profit goes to milk producers”, The CM was speaking at the ‘Sahakara Ratna’ award ceremony organized by Karnataka State Cooperative Federation Limited recently.

Meanwhile, opposition leaders have charged that it is less of a co-op event and more of a political one. “This is a bid to reach out to the voters through cooperatives for the upcoming elections of Karnataka”, they felt. It bears recall that cooperatives have a strong presence at the village level in Karnataka.

Readers would recall that a few days back, Shah participated in the mega co-operative event in the Surat district of Gujarat, which drew a huge crowd of co-operators.

There are 42,551 Co-operatives under the control of the Registrar of Co-operative Societies in the state, of which 37,532 are functional.

Source: Agencies

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UNDP, KOICA launch construction of three markets in refugee hosting districts

ADJUMANI – The United Nations Development Programme [UNDP] in partnership with the Korean International Cooperation Agency-KOICA launched the construction of markets in each of the three refugee hosting districts in Northern Uganda.

The market construction project was launched in Ciforo sub-county in Adjumani district.

The markets will be constructed in the Adjumani, Obongi and Lamwo districts at a tune of Shs150 million. This is part of the USD 9 Million, approximately Shs 37bn Uganda Host and Refugee Empowerment Project being implemented by World Vision, among other implementing organizations.

Raymond Mukisa, the Uganda Host and Refugee Empowerment Project Manager said through the project, over 10,40 people, both host communities and refugees have received training in various income-generating activities under the economic empowerment, livelihood interventions.

Mukisa also said, the beneficiaries have been struggling to access local markets to sell their products and goods due to the poor roads, sunshine or rain which has negatively impacted on the growth of their businesses.

Through the market construction, Mukisa said both the refugees and host communities have the platform to sell, store and save their money in the market stalls, stores that will be constructed and savings groups that have already been formed.

Luke Drazelega, the LCIII Chairperson Ciforo sub-county said, the sub-county has been operating without a permanent market for the last 30 years which greatly affected the economic empowerment and livelihood of the host communities and now the refugees.

Drazelega notes that with a new market coming to his sub-county, this will boost local revenue base, as well as development of the sub-county.

Lawrence Buni, the Macupe clan, who donated the 80 by 100-meter piece of land for the construction of the market says, they initially were forced to move for over 10km to access services in the market.

Grandfield Omona, the Adjumani district Chief Administrative Officer [CAO] said, they have already started construction.

Buni further said, with the market nearer, they expect buyers from nearby districts including Yumbe, Obongi, Amuru among others which will directly impact on the local economy.

Sheila Ngatia, the Deputy Country Representative of the United Nations Development Program [UNDP] tasked the community members to own the project for the sustainability of the market.

With the market yet to be designed, Ngatia says, the design should cater for renewable energy, water sourcing and storage and possibly a youth resource center as well as security, which all contribute to socio-economic transformation of the refugees and host communities.

Ciforo sub county has a total of 27,000 Ugandans with 7,000 South Sudanese refugees.

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Lira based Indian investor losses sunflower worth Shs100m

LIRA – An Indian investor in Lira City has lost 54 tons of sunflower seeds worth Shs100m to suspected thieves.

The grains according to sources, started disappearing in January but the proprietor of the oil milling factory, Nasir Muhammad detected the syndicate a week ago and rushed to police for urgent intervention.

“The theft started in January but I detected it when I saw the level of sunflowers in my store going down,” Nasir said.

Nasir said he took an initiative to measure all the grains but later he discovered that over 50tons were missing and he had made a loss of Shs100m.

The incident prompted both the Pakistani and Indian investors in the City to raise red flags and concern over the security of their oil milling factories and doubt of doing business in the industrial city.

Atiqe Nwaze Muhammad, the Chairperson of Pakistani Association in the Lango sub region urged the police to urgently investigate the matter, arrest the suspect and arraign in court to restore confidence in them.

He accused the police of not arresting the two suspects who participated in the theft and sold the stolen goods to one of their colleagues [Bahadur Khan].

“This thing is coming to a week, police are just coming to grab sunflowers daily in the name of recovering exhibits from our friend,” he says.

The police said they recovered 5tons of seeds in Khan’s factory located at the industrial area, Lira City East division.

But Khan also said, it was delivered to him by one identified as Opio, the landlord of Nasir.

“It is so worrying for us to do business in this City because we are losing daily,” Atige said, while meeting the Resident City Commissioner, Lawrence Egole, OC operation, Ivan Karenga, Chairperson Deo Kibirige of Uganda national chamber of commerce, Lira branch.

The investors totalling to about 30 met the security team on 24th in an attempt to sort out a misunderstanding between them and the police.

Surjit Singh, the Chairperson of the Indian community in Lira said, they have employed more than 200 people and the police should treat them equally without exception.

But the police said, the prime suspect, Moses Opio and two others are still on the run and whoever has the clue on his whereabouts should tip them.

Khan claimed that it’s now one week, the prime suspect is not arrested yet he has all the records including his contact.

“Instead, in my police bond form is written breaking into a store, carrying stolen goods and again receiving stolen goods, how can it be,” he wondered.

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Population growth threatening sustainable land use in Teso sub-region

SOROTI – The current population growth is threatening sustainable land use in Teso sub-region.

Figures from the National Population Council (NPC), a state agency that advises the government on population issues, show that Uganda has a population growth rate of 3.3 percent per annum, making it the third fastest-growing population in the world.

The country’s population is projected to reach 75 million by 2040 from the current 40 million people.

According to the National Population Council, youths below the age of 30 make up more than 78 percent of the 40 million people.

Teso sub region alone accounts for 7 percent of Uganda’s population of 40 million people, as per State of Uganda Population Report [SUPRE] 2020, which is an annual population of the National Population Council [NPC].

However, the locals don’t yet understand how their rising population will take a toll on sustainable land use in region.

As the population increases, the demand for land intensifies as everyone struggles to find space for their livelihood.

George William Apuda, aged 85 years old and a resident of Akoboi village in Ngariam sub-county Katakwi district, recounts that twenty years ago, farmers looked out at the forests and grasslands of Teso and saw endless virgin territory.

“A young man, upon starting a family, would clear a patch of wilderness near where he was raised and plant his own sorghum, millet, groundnut, or cassava,” said Apuda.

However, Apuda, a father of eight children, noted that after decades of unprecedented population growth; the land is running out, as in many parts of the region, people are bumping up against one another over land for cultivation.

According to him, cubicles of arable land can still be found, but only in malaria-ridden localities where nobody wants to live.

Apuda further explained that a number of people are clearing rain forests near their homes instead of relocating to distant locations. Tropical forests’ acidic soil does not favour growing grains, fruits and vegetables.

He added that land ownership in Teso sub region currently stands at two acres per household, which parents subdivide amongst their children, reducing it to a plot which is too small to feed a family.

Augustine Omare, the former Prime Minister of Iteso Cultural Union [ICU] argued that given the high number of children visa vie limited land, families in Teso region are no longer able to grow enough food for themselves.

He referenced the Uganda Demographic and Health Survey [UDHS, 2011 and 2016] that show that Uganda’s total fertility rate stands at 5.4 children per woman, a reduction from 7 children per woman in 1991.

“Given the high fertility rate, some parents are not able to feed their children properly, let alone afford their education, children thus grow up desperately poor and have huge families of their own, which is exerting pressure on limited natural resources such as land and forests,” stated Omare.

According to him, the shrinking farmland adds yet another burden, food production on a per-capita basis is declining and malnutrition is worsening, which means that children are likely to grow up even less healthy and less productive.

Omare, points out that Teso sub-region is one of the poorest regions according to Uganda Bureau of Standards (UBOS) and is stuck in a demographic trap.

Andrew Oboi, the District Agricultural Officer (DAO), revealed that people have abandoned land management techniques that they used previously to sustain the long-term fertility of their fields, such as allowing one of the fields to lie fallow each season.

“Three-quarters of all arable land in Teso today is severely depleted of nutrients because it has been overused” said Oboi.

This he said is a result of vanishing vast arable land due to population growth.

Oboi, wonders how the next generation is going to make it, if people continue having huge numbers of kids, and if farm sizes continue to shrink.

Factor responsible for population growth.

Mary Margrate Atukoit, a mother of nine children and a resident of Kipinyang village in Magoro sub-county in Katakwi district says, on an individual level, many women in the rural areas are currently unable to attain reproductive autonomy.

“Much as government is encouraging couples to embrace family planning, men still don’t allow their women to go for family planning,” she noted

Atukoit, lamented that when a woman cannot achieve reproductive autonomy, both individuals and society experience greater socio-economic burdens which is a significant problem.

“When women cannot determine whether and when to have children, or how many to have, their quality of life and their economic prospects suffer”, she explained.

Joyce Glades Alado from Ngora district said, women and girls still face incredible obstacles, including inferior status in their communities and relationships, gender-based violence, prejudice and discrimination in all aspects of society.

As a result, she explained that many struggle to advance their position in society or determine their own future, adding that they often cannot decide for themselves whether to have children or the number of children.

Call for Action to slow down the rapid population growth.

One way to break the cycle of overpopulation and misery, Angela Anyumel, a primary teacher in Serere district said, government should increase the availability of both long- and short-term family planning contraceptives so as to increase family planning uptake among women in reproductive age.

She is one example of the many women in Teso who are affected by lack of choice, due to limited family planning methods provided at health facilities.

Anyumel explains that she tried using Depo-Provera as a birth control measure, but had to stop after realizing that the contraceptive increased her heartbeat.

“When I was given Depo-Provera, my heart beat increased and yet I had high blood pressure”, recounts Anyumel.

Anyumel said after taking Depo-Provera, her periods took a while to resume after her last child, prompting her to make a decision to breastfeed her child for a year thus relying on breastfeeding as a means of natural family planning.

She wishes there were other available methods of birth control, but every time she goes to the local government health facility, she is asked to use either pills or an injector plant.

“Whenever we seek family planning services from the government facilities, midwives end up providing short term family planning commodities such as pills and injector plants just because long term family planning commodities are always out of stock” Anyumel recounts her ordeal.

Evelyne Abiro, a mother of five and a resident of Arapai sub-county in Soroti district adds a voice to Anyumel’s concern saying, women need to have a wide range of family planning methods so that they can choose what works best for them.

Meanwhile, Lilian Kamanzi Mugisha, Communications and Fundraising Manager at Amref, urged the government to increase awareness about family planning among both women and men in rural areas because there are a lot of myths and misconceptions surrounding contraceptives methods.

She is optimistic that promoting family planning by educating men and women about contraception will play a key role in reducing fertility rates, problems associated with overpopulation and decreasing poverty in Uganda.

“A reduction in fertility rate was achieved in the West over the course of a century of female education, national family planning services and the introduction of job opportunities for women”, therefore it’s important to empower women by giving them access to reproductive health service as well as better economic options”, said Kamanzi Mugisha.

Kamanzi Mugisha also stated governments must promote responsible parenthood and limit subsidies to the first two children unless the family is living in poverty.

This, she noted, can be accomplished by promoting child spacing and having fewer children. In certain urban regions of the country, there are posters showing happy couples with just one or two children.

Government efforts to harness Demographic Dividend

Last year, Cabinet approved the new National Population Policy 2020, which is aligned alongside Vision 2040 and Sustainable Development Goals.

Stella Kigozi, the Director, Information & Communications National Population Council Uganda says, unlike the past policy developed at the time when the country was battling the high fertility rates, maternal mortality rates and high incidences of HIV/AIDs, expect the new policy steers the country towards harnessing the demographic dividend.

“The new policy recognizes that in addition to infrastructure like roads, energy and Information Communication Technologies, the government needs to prioritize human capital development” states Kigozi.

She also reveals that the policy calls for more investment in the social welfare of the country so that as the population grows older, they are able to positively and effectively contribute to economic development.

Kigozi reiterated that the National Population Council [NPC)] is commitment to addressing high population growth rate by reducing total fertility rate to 2.5 percent from the current 5.4 percent, increase family planning uptake and address early marriages among others.

“No country can grow without tackling issues like population growth and fertility rate” said Kigozi.

The government has for long been divided between supporting or discouraging high population growth rates if it is to realize the required sustained economic growth rates, which will lead to development and social transformation.

According to the 2019 revision of the World Population Prospects Uganda’s total population was 42,729,036 in 2018, up from 34,856,813 given by the National Housing and Population Census 2014.

The proportion of children below the age of 15 accounts for 48 percent, while those 65 years or older are just 2.5 percent, making Uganda the country with the third youngest population after Niger and Mali.

Therefore, cutting exponential population growth will help Uganda harness her demographic dividends and achieve economic aspirations as stated in Vision 2020.

This story was produced with Support from the National Population Council (NPC) in Collaboration with Population Reference Bureau (PRB).

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Putting Principle Six in action makes co-ops thrive

US -The sixth cooperative principle (Cooperation amongst cooperatives) provides cooperatives a crucial advantage, enabling them to work together on joint projects, lower costs and exchange knowledge.

This is the case at the National Co+operative Grocers (NCG), a business services cooperative for retail cooperative grocery stores located throughout the United States.

As a secondary level cooperative with purchasing cooperative functions, NCG aggregates volume among its 147 retail food cooperatives to deliver lower costs or improved access to each member cooperative.

Guided by the philosophy of “stronger together”, NCG’s mission is to provide the capacity of a chain while maintaining the autonomy of each individual cooperative. Beyond acting as a purchasing cooperative, NCG actively works to facilitate a strong system of peer support among its member co-ops which makes them more resilient to individual and macro-market events.

NCG also offers training and educational resources through its online learning management system and thousands of consumer-facing brand assets for marketing and promoting its members’ operations. It also publishes annual reports, explaining industry trends and issues frequent communications to keep all audiences apprised and engaged.

“The fact that we are a cooperative permits us to punch above our weight. For instance, in our 16 years of operations, we have never been engaged in a single lawsuit as a result of our practices. In addition, our 147 member cooperatives are willing to guarantee each other’s payables for core purchases and participate in our self-managed system to mitigate and manage that risk,” said Karen Zimbelman, Senior Director of Membership and Cooperative Relations.

NCG also offers legislative and regulatory advocacy on behalf of its member cooperatives, and operates a consumer-facing website as well as a broad suite of consumer-facing informational materials. It conducts regular extensive national consumer research on behalf of its member cooperatives to keep its branding and messaging relevant.

Owned by their local communities, the cooperative members are passionate about local collaboration for positive change. NCG collectively donated over $7.3m to local community organisations in 2020.

Food cooperatives also work individually to reduce their carbon footprint, and collaborate through NCG to reduce the negative environmental impact of their supply chain.

“NCG has accomplished more in our 16 years of operation due to the fact that we are a cooperative. Our members are cooperatives, so they understand and appreciate the idea of ‘the whole benefiting each part’ and the ‘sum is greater than its parts.’ They are familiar with the concept of ‘stronger together’ from their own operations,” said CEO C.E. Pugh.

Another cooperative that is using the power of intercooperation is Cooperativa de Software Libre in Argentina, which has 20 worker members. The cooperative is a member of the Argentine Federation of Technology, Innovation and Knowledge Worker Cooperatives (FACTTIC), through which it engages with other cooperatives.

Set up 15 years ago, the cooperative develops software for other cooperative enterprises and government organisations.

“We work exclusively with free tools and believe that in order to comply with the fourth cooperative principle of independence and autonomy, free software plays a key role,” said Leandro Monk, one of the members of Cooperativa de Software Libre.

Being part of FACTTIC has many benefits, including being able to work together with other cooperatives on joint projects. Formed in 2010, FACTTIC brings together cooperatives that operate in the technology, innovation and knowledge (ICT) industry. It also promotes the creation of new cooperatives, placing a strong emphasis on local roots and development of different capacities.

“For us, participating in FACTTIC and using its integration tools generates many advantages for each of the cooperatives participating. First and foremost, it gives us the tools required to be able to take on new projects without the need for hasty growth. On the other hand, it allows us to minimise the risk of each of these projects in the structure of our entities. We also managed to generate a business or work climate for small new partners,” said Mr Monk.

FACTTIC runs an Inter-cooperative Work Flow (FIT) through which its members develop inter-cooperative projects and are able to exchange knowledge and provide better services for clients. By doing so they also avoid outsourcing, choosing to work with other cooperatives instead.

“Encouraging intercooperation is a duty of the cooperative movement. It is not possible to be supportive alone,” concluded Mr Monk.

Source: International Cooperative Alliance (ICA)

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UMEME sees slight jump in gross profit as it seeks extension of concession beyond 2025

KAMPALA – Uganda’s electricity distributor, UMEME earned some profit in 2021 even as the country was placed under covid-19 lockdown as a way to curtail the fast spread of the deadly virus that still bothers the world.

According to the audited financial statement for the year ended December 31, 2021, the company that won a 20-year concession in 2005 to distribute electricity pocketed about Shs642 million gross profit compared to about Shs 479 mln earned in the previous year.

The company in its report attributes the increase in profit to operational efficiencies and underlying distribution margins.

Still, the period under review shows Umeme posted a 13.5 percent rise in revenue to approx. 1.9 bln, from about Shs 1.7 bln realised in 2020.

According to the financial statement, 6067 shareholders will share the net profit of Shs 139 mln at the recommended dividend of Shs 54.1 per ordinary share. Only shareholders captured as of June 24, 2022 will benefit.

The financially powerful NSSF has 23.34 percent shareholding in Umeme, making it the biggest shareholder.

Meanwhile, Umeme says it will continue to engage with the government to have its contract extended beyond 2025, the year it is supposed to end.

“The company will continue to engage with the government of Uganda for clarity on the future of the Concession as the current one comes to an end in 2025,” its Managing Director Selistino Babungi who published the report says of the controversial contract that disadvantages government should it terminate it before 2025.

President Yoweri Museveni has in the recent past castigated the operations of Umeme and even threatened to terminate its contract, even though the company says it has connected about 1.6 mln clients compared to 250,000 connections in 2005.

That aside, energy losses that stand at 18 percent continue to worry both Umeme and Museveni even though Umeme has reduced the rate from 38 percent in 2005.

The agreement stipulates that in case of termination of the contract due to circumstances beyond the control of both parties, the government pays 90 percent of the invested money, which is in the region of about Shs 250 bln. Such circumstances include war, riot, strike, crime, flooding, earthquake, or volcanic eruptions.

The contract also obliges the government to pay an interest of 20 percent per annum of any outstanding portion of the buyout amount should 91 days elapse after the termination date until it clears the money in full.

The Umeme concession was intended to improve the quality of service, increase investment in the rehabilitation and expansion of the power distribution network, reduce losses, increase new connections and provide reliable and affordable electricity to consumers.

According to the government, Umeme has not realised the objectives of the reforms in power distribution, as there is high power distribution losses, billing and collection losses, power tariffs, poor quality services and low access levels.

The company, which distributes 97 percent of grid power, says in its financial report, it has more than doubled network length to 44,000 kilometres, from 16, 000 kilometres in 2005, and that it has increased transformer zones to 14,833, from 6000 in 2005.

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Standard Chartered Bank renovates classroom block, plants over 300 trees at Salaama School For the Blind

MUKONO – Over 40 staff of Standard Chartered Bank days ago volunteered in a community initiative at Salaama School For the Blind in Kisoga – Mukono where they renovated a classroom block and planted 300 fruit and indigenous trees that will be helpful in preserving the environment and providing nutritional needs for the students in the near future.

The founder and headmaster of the school Francis Kinubi who received the bank’s staff said he has led the school for the last 23 years. The school has 72 students who are visually impaired with various disabilities that could not allow them go to normal schools.

However, during the visit, the bank’s staff took off time to socialise and learn from the children as played various games with the visually impaired minors. The visitors also had a chance to observe how the children in this school read and write using braille machines. The visitors also had a look at other special needs equipment before they shared a meal with the children.

Bank staff play a game of woodball with the visually impaired children (Courtesy photo)

While speaking at the event, Margaret Kigozi the Acting Head, Corporate Affairs, Brand and Marketing at Standard Chartered Bank said: “One of our strategic pillars as Standard Chartered Bank is “Accelerating zero” where we have committed to help communities in our footprint to reduce carbon emissions as fast as possible, without slowing development and putting the world on a sustainable path to net zero by 2050.”

Kigozi said the activity was all about promoting renewable energy and preserving the environment. “Therefore, we have planted 300 trees as Salaama School for the Blind which sits on over 23 acres of land so they can better utilize the land as a key resource to enable them cater to the needs of the children who mostly come from impoverished families and can’t afford the tuition or the school necessities,” she said.

On his part, Moses Rutahigwa the Head of Consumer, Private and Business Banking at Standard Chartered Bank said: “We are delighted to volunteer at Salaama School for the blind today to demonstrate that we are not detached from the community in which we have operated and thrived for over 109 years but that we are indeed part of it and deeply care about it.”

Rutahigwa said the bank’s staff were happy to connect and “be part of the people whom we serve every single day as customers, to be able to help communities such as Salaama School for the blind, interact with disadvantaged children, hear the dreams of these young people and inspire them to pursue their dreams. Our effort to repair and renovate one of their buildings will go a long way in providing a decent environment for the students to study in.”

The Manager, Sustainability at Standard Chartered Bank Deus Turyatemba while speaking to the participants stated: “As a visually person myself, I am very inspired by the fact that my colleagues at Standard chartered Bank where I have worked for over 15 years now, were able to interact with the visually impaired children. They have taken off time to learn a number of things from this special community that enables them to appreciate the challenges that the children face which opens up their minds.

This new acquired knowledge the Bank staff have received will enable them to be more empathetic, ambassadors and champions towards causes for disadvantaged persons as disability is not inability. If these children are supported, they have the potential to be productive members of society and are capable of so many things and I am a living example of this.”

The headmaster thanked Standard Chartered Bank saying that it has been a great partner and supporter of Salaama School For the Blind for over a decade. The bank has supported the school with renovations, computers, braille machines, providing scholastic materials for visually impaired persons, among others. “I wish to express our sincere gratitude to Standard Chartered Bank Uganda for this current drive to once again support us.”

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Museveni To Farmers: Don’t Overprice Milk

KAMPALA – Insidious cattle diseases such as Foot and Mouth and Anthrax have diminished the quality of the country’s animal products, made farmers to overprice milk and narrowed their competitive edge in the international market”, President Yoweri Kaguta Museveni Tubuhaburwa has said.

“The global demand for milk products is 906 billion litres valued at US$ 458 billion therefore our present production of 2.6 billion litres of milk can enter the global market provided you solve the problem of cattle diseases such as Foot and Mouth, Contagious Bovine Pleuro Pneumonia (CBPP) and Anthrax and of course also offer competitive prices,” the president said in his annual State of the Nation Address last week at Kololo Independence Grounds.

“Therefore, the Banyankore I once met at Rwakitura clamoring to over price milk need to know more about this global competition for market with countries such as New Zealand and Holland,” the president added.

“So, one day I attended a meeting at Rwakitura with the Banyankore. They said we want more money for our milk but if you overprice milk, how will it compete in London, Beijing, New Delhi and New York with milk from other countries? So, we need to wake up our people that we are struggling in a global environment,” he said.

Museveni said Uganda needs to produce quality products to compete internationally.

“Our people need to know that if we are to compete for global markets, our products must be of good quality, must be safe but also cheaper than what other countries are offering,” he said, adding that finding market for agricultural products is not an issue, the post-harvest mishandling of the products is.

“The global demand for maize and maize products is 852 million metric tons valued at US$ 152 billion therefore our production of five million tons of maize can be absorbed provided we solve the problem of quality, getting rid of the shameful aflatoxins- caused by people who mishandle food during harvesting. Why do you mishandle people’s food?” Museveni asked

He said demand for Ugandan products is high.

“Fortunately, the global demand is able to take all the coffee because the global coffee demand is 166.34 million tons and the global demand for milk products is 906 billion litres, valued at US$ 458.1 billion. Therefore, our present production of 2.6 billion liters of milk, can enter the global market provided we solve the problem of cattle diseases (Foot and Mouth, CBPP, anthrax),” he said.

He also appealed to all Ugandans to join the money economy through practicing commercial farming.

“Let all the leaders stop confusing people by sending contradictory or divergent messages. The NRM message ever since 1966 has been; all homesteads should join the money economy and stop working just for the stomach,” Museveni said.

He said the performance of industries in Uganda is still held back by the heavy costs of manufacturing, which include; exploitative commercial bank loans and high transport among others.

“In addition to our long-term goal of building a modern standard gauge railway, we are together with Kenya, rehabilitating the metric-gauge railway for immediate use because by road, a 20ft container costs US$19000 and a 40ft costs US$3200 to Mombasa yet by rail it costs only US$1400 for a 20ft and US$1900 for a 40ft, respectively,” he said.

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He also nudged the youths to adopt technology which will address unemployment in Uganda.

“I have been urging our people in the ICT sector to take advantage of the Business Process Outsourcing (BPO) in the world. India is earning US$191billion per year from this business of BPOs and employing 1.1million young people,” the president explained

Business Process Outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors.

Museveni said he will not accept the minimalist approach of the Ministry of Finance where Ugandans generate wealth that is smaller than that of individual companies in some parts of the world.

“By 2026, Uganda’s population will be 48 million people. If each person is earning US$3,000, that will be US$144billion. Yet US$3,000 per person per year translates to Shs10.8million per year and this will just be people’s incomes, without including infrastructure,” he said.

However, the president believes that once COVID19 is kicked out, Uganda’s economy will resurrect.

“Before the Corona, we were earning US$1.5billion from tourism alone, hotels, banking, music, sports and professional services were moving on well until corona came in,” Museveni said.

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Aupi Community Cooperative Fails To Cultivate Land

YUMBE – Aupi Community Cooperative farmers struggled for three years to find money to buy 200 acres of farmland.

Now, they can’t cultivate the huge acreage in the West Nile district of Yumbe.

They need tractors to open up the farmland but can’t find any to hire.

According to managers of Aupi Community Savings and Credit Cooperative Society, demand for agricultural products soared in Yumbe District spurred by the huge influx of refugees in need of food.

Farmers couldn’t match the demand for food since they didn’t have tractors to open up huge acreage of arable land.

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The Board Chairman of the cooperative Tohaabubakar Ijoga said, “Aupi cooperative has committed members who are ready to practice commercial agriculture but due to inaccessibility of tractor hire services by the group, members have resorted to small scale agriculture for domestic use.”

He said the cooperative has only Shs 65 million, which is too little to buy a tractor.

Meanwhile, Leonard Okello, the chief executive officer of Uhuru Institute for Social Development, advised the management of Aupi Cooperative to apply for tractors through government programmes such as Operational Wealth Creation (OWC).

“Use the available government programmes to bail you out from poverty, e.g. parish model and OWC, which target to eradicate poverty among organized and focused members in the community,” Okello said.

Amana Small, a member of the cooperative, said the members’ reluctance to repay loans has held back the cooperative’s progress and capacity to own tractors.

She said if the cooperative owned a tractor; it would be easier for group members to hire it at a low cost compared to tractors hired from private individuals.

She said hiring a tractor costs Shs120, 000 per acre and it’s hard to place an order because everyone wants to hire that one tractor.

“Uhuru please help us with a tractor such that we practice commercial agriculture for economic transformation,” Amana said.

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