Air Tanzania commences flights to Uganda

Air Tanzania extended its services to Entebbe International Airport with its inaugural flight on Sunday, 26th August 2018. The 76-Seater Q400 series plane touched down at 13:01pm and was received by the Minister of State for Works and Transport; Hon. Aggrey Bagiire and the Tanzanian High Commissioner to Uganda; H.E. Grace A. Mgovano, Civil Aviation Authority officials, Air Tanzania officials, and H.E. Richard Tumusiime Kabonero, High Commissioner of the Republic of Uganda. The flight was honored with a water salute; a customary welcome in the aviation industry.

In his remarks, the Hon. Minister of Works and Transport noted that this is a huge step towards easing connections between the East African countries and that it will help boost trade between the two countries. The Tanzanian Ambassador to Uganda confirmed that Air Tanzania will offer affordable flights with high frequency through Entebbe International Airport totaling to 4 times a week. He was optimistic that the entry of Air Tanzania to the Entebbe route will meet the travel demands of East Africans.

“On top of the low fares, Air Tanzania will offer customers the ability to customize their travel to their needs and budget by allowing excess luggage and issuing tickets that don’t expire”, he added.

In a statement released by the Managing Director and CEO of Air Tanzania; Eng. Ladislaus Matindi said that,

“The Wings of Kilimanjaro is proud to once again serve East Africa with direct flights and smooth connections to and from Tanzania. The service will enhance investment, trade and tourism opportunities in the region”.

Air Tanzania is the flag carrier airline of Tanzania based in Dar es Salaam with its hub at Julius Nyerere International Airport. It was established in 1977 and has been a member of the African Airlines Association since its inception. Air Tanzania is a wholly owned government company that has served a variety of domestic, regional and international destinations over the years.

The airline operates a fleet of 5 carefully selected aircrafts including a Boeing 787-7 Dreamliner to meet performance, dependability and comfort.

In the 4th quarter of this year, Air Tanzania will be connecting to Mumbai-India, Johannesburg, Bangkok and Guangzhou- China and Harare via Dar es Salaam.

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NSSF Records UGX 1.6 Trillion Income for the Financial Year 2017/2018

The National Social Security Fund (NSSF) recorded an impressive performance on key financial indicators for the Financial Year 2017/2018, with total income hitting a record UGX 1.6 trillion before interest to members and taxes, Managing Director Richard Byarugaba has said.

The Fund’s total Assets Under Management (AUM) also hit UGX 9.98 Trillion as at June 30, 2018, a 26% increase from UGX 7.92 Trillion the previous Financial Year. This means the Fund keeps its place as the biggest social security fund in East Africa by value.

Addressing journalists at Workers House today, NSSF Managing Director Richard Byarugaba attributed the Fund’s impressive performance to a favourable investment climate and an aggressive, yet prudent investment approach.

“Uganda experienced improved economic growth of 5.8% compared to 3.9% the previous financial year, which meant that generally, the investment environment saw significant improvements at a macro level. We were also aggressive in the market, seizing opportunities presented by growth in regional markets especially in Uganda and Kenya,” Byarugaba said.

According to figures released by the Fund, total income grew by 77% from UGX 912 billion in 2017 to UGX 1.6 trillion. This was primarily due to a rise in investment income and member contributions. The growth in income was driven by growth of interest income and strong recovery of regional equity markets. The depreciation of the UGX also increased the UGX value of our investments in the region.

Total member contributions also increased by 14% to UGX 1.05 trillion for the Financial Year 2017/2018 compared to UGX 917 billion the previous Financial Year.

“For the first time in the history of the Fund, we recorded over a trillion shillings in collections from our members. This is as a result of a steady rise in compliance level, now at 81% over a three months’ period, and contributions from the Fund’s voluntary members,” Byarugaba said.

Benefits paid to qualifying members rose by 29% to UGX 360 billion for Financial Year 2017/2018 from UGX 278 billion the previous Financial Year.

Byarugaba also said that the Fund continues to effectively manage its costs. The cost to income ratio declined by 1% to 12.6% for the Financial Year 2017/2018 from to 13.4% the previous Financial Year.

“We have not only grown more efficient in the way we do business, but we have maintained the required discipline to ensure high levels of productivity at the lowest cost possible. This is a commitment we made and we will continue to focus on creating value for our members at a low cost,” Byarugaba added.

Fund’s 2017/2018 Performance

  • The Assets Under Management (AUM) increased by 26% from UGX 7.92 Trillion in 2017 to UGX 9.98 Trillion in 2018
  • Total Income increased by 77% to UGX 1.6 Trillion in 2018 from UGX 912 Billion in 2017
  • Member contributions grew by 14% to UGX 1.05 Trillion in 2018 from UGX UGX 917 Billion in 2017
  • Benefits paid out to qualifying members increased by 29% to UGX 360 Billion in 2018 from UGX 278 Billion in 2017
  • Compliance Level rose to 81% in 2018 from 80% in 2017 leading to improved contributions
  • Cost of Administration stayed flat at about 1.3%
  • Cost to income ratio declined by 1% to 12.6% in 2018 from to 13.4% in 2017

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TIDAL and MTN Uganda Announce Trailblazing Partnership

Global music and video streaming platform, TIDAL in partnership with the leading communications operator in Uganda offering mobile & fixed telecommunications, MTN Uganda, have today announced an exciting, first-of-its kind collaboration.

The partnership provides MTN Uganda customers a variety of options for a data-inclusive TIDAL membership as part of their mobile plan to gain access to exclusive high-quality streaming music, videos, concerts and more.

“Africa is a continent that has long been an inspiration for music heard around the world and TIDAL is excited to highlight the vibrant musicians on our platform. TIDAL is also thrilled to bring a new wave of digital music to Uganda as part of this collaboration” said Lior Tibon, COO TIDAL.

The partnership, launched in Uganda but set to be rolled out in other MTN operations across Africa comes with an array of membership options where customers can tap into one, three, seven and 30-day memberships, all of which include data and a free 30-day trial for all first-time members.

On the importance of MTN’s partnership with TIDAL artist-owner Damian Marley noted:

“I remember hearing stories about my father‘s records being destroyed once they got to Africa. They didn’t want the people to hear the message in the music. What a beautiful day it is now when Africa will not only have access to my family’s music but to all music that exists”

Speaking about the launch of the partnership, Jason Kpana, SVP Artist & Label Relations, shared:

“I’m really looking forward to connecting with Uganda’s musicians and helping to bring the TIDAL music streaming experience to fans across the country. We know MTN customers will love the diverse playlists, livestreams, videos and original content available on TIDAL.”

The content on TIDAL offers a deeper look into not only the repertoire of artists, but the music that inspires the work they do. Editors across the globe showcase the hottest tracks across all genres and create soundtracks for key cultural moments – life, death, civil revolutions, works of literature, and movies that have caught the cultural zeitgeist.

In celebration of the Ugandan music industry and the start of a digital music revolution, TIDAL and MTN Uganda announced advanced plans in organizing an exclusive Collaboration Conference and ‘The MTN TIDAL Experience’ which will be held on 27 and 28 September respectively. MTN Uganda Chief Marketing Officer, Olivier Prentout, gave more details about it:

“The Collaboration Conference will exclusively be attended by artists, music producers and promoters. The conference aims to bring artists together to learn about the evolution of the music industry across the globe and how to expand locally along with the help of TIDAL. Following the conference, “The MTN TIDAL Experience”, featuring dancehall artist Kranium, Nigeria’s DJ Spinall, our very own Beenie Gunter and local DJs are set to host the experience which will be held at the MTN Headquarters”.

“At MTN we believe that everyone deserves the benefits of a modern, connected life. This partnership with TIDAL further demonstrates our strategic vision to lead the delivery of a bold, new digital world to our customers by making music more available on their smartphones. One product innovation MTN will add to the TIDAL subscriptions is the inclusion of data. MTN subscribers will be given the choice between daily, weekly and monthly packages payable only via Mobile Money (MoMo).” added Olivier.

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Government promotes oil and gas projects at Africa Oil Week 2018

Hon Irene Muloni, the Minister of Energy and Mineral Development, in the Republic of Uganda will lead a delegation of private and public-sector players from Uganda’s oil and gas sector to the Africa Oil Week 2018, which will be held between 5 – 9 November, 2018 in Cape Town, South Africa. Hon Muloni said, “Uganda is open for business and we will be looking forward to promoting the country`s highly progressive and lucrative hydrocarbon sector during the Africa Oil Week. Over the course of the week, we will announce a roadmap for Uganda’s next licensing round and offer insights into our country’s potential and operating environment.”

Uganda is committed to developing its petroleum sector across the entire value chain, and clear strides to move the country’s key assets from the exploration phase into the development phase have been made. Uganda offers opportunities for companies looking to explore, develop and utilise its petroleum assets. The Permanent Secretary of the Ministry of Energy and Mineral Development Robert Kasande said,

During the Africa Oil Week, we will host private meetings with the global private sector with a view to successfully attract capital in every stage of our oil and gas value chain.

Ernest Rubondo, Executive Director of the Petroleum Authority of Uganda went on to say, “As the regulator of Uganda’s oil and gas sector, Africa Oil Week offers the Authority an exciting platform to provide insight into the regulatory environment in the country and how this has been structured to position the country as a sound investment destination. We encourage operators, investors and service companies to attend the Oil Week and meet with officials from the Government of Uganda and the private sector. Uganda welcomes you to partner in what we believe is one of the most commercially viable and prospective oil and gas environments in the world.”

The Africa Oil Week is an important event which continues to drive new business opportunities for E&P companies in Africa. It presents an exclusive and dynamic network of Oil and Gas operators in Africa. Former UK Foreign & Commonwealth office Minister with responsibilities for Africa, the Caribbean, UK Overseas Territories, International Energy and Conflict Prevention Rt. Hon. Mark Simmonds added, “The commitment of the Ugandan Government to Oil Week reflects a country on the move in the petroleum sector. Africa Oil Week will focus on the country’s oil and gas sector during the week.”

Dr Josephine Wapakabulo, Chief Executive Officer for Uganda National Oil Company (UNOC) also added that, “UNOC is responsible for the State’s commercial interests in Uganda’s oil and gas sector and we see the country’s participation at Africa Oil Week as a clear opportunity to engage with the most prestigious global operators. UNOC will arrive at Africa Oil Week looking for strategic partners who have the appetite, financing, technology and capabilities to deliver equitable and profitable projects in Uganda’s oil and gas sector.” These projects have been identified and will be on display during the week.

Conference Director Mr. Paul Sinclair said, “On top of the 13 confirmed ministers who will lead delegations to Africa Oil Week, we now have a partnership with the Government of Uganda to host a huge opportunity for the global private sector to exclusively engage and hold private meetings regarding oil and gas opportunities at Africa Oil Week.” This comes fast on the back of the governments of Ghana and Congo announcing their own bidding rounds at Africa Oil Week in November 2018. Africa Oil Week remains the only true industry event for the Africa’s upstream Oil and Gas sector.

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Getting on the fast track: the digital transformation of Africa’s rail system

Few modes of transport evoke such a sense of history and romanticism as rail. The first recorded use of rail transport was around 500BC, when ancient Greeks used a rail-like system – most likely powered by humans or horses – to carry boats across where the Corinth channel currently is. In the 1400s, German miners used wooden railways that were pushed by hand or pulled by horse. After the first iron rails were introduced in England in 1767, it took less than 40 years before Richard Trevithick built the first steam locomotive, also in England. In 1830, the world’s first regular steam passenger rail service was inaugurated by the Canterbury & Whitstable Railway.

Africa’s first network of railways was started in Alexandria, Egypt in 1852. By 1860, South Africa had launched its first steam train, running from Central Durban to the Point, and by 1897 a railway line between Cape Town and Bulawayo in Zimbabwe was completed. In the early part of the 20th century rail lines were being constructed across the continent, connecting cities and countries in North, East, West and Southern Africa.

Today, fast-growing economies across the continent are upgrading antiquated rail infrastructure to support improved regional trade and mass local transit. However, according to the African Development Bank, the poor condition of rail infrastructure and rolling stock in many African countries is undermining the potential of rail systems to contribute to economic development.

Critical priorities for rail development in East Africa

Governments and rail operators are responding positively: ambitious rail projects are underway in many African countries, including Senegal, Morocco, Cameroon, Nigeria, Gabon, Ghana, Algeria, Ethiopia, Egypt, Kenya, Uganda, Mozambique and South Africa. In Tanzania, the largest port in East Africa is currently under construction at Bagamoyo, while further north the Kenyan government is planning a port to match it near Lamu. In both cases, rail networks will be established to facilitate trade with landlocked countries in the region and to support economic development in the East African Community and beyond.

Kenya’s Standard Gauge Railway (SGR) investment and expansion looks set to eventually connect it to the West African coast, while Ethiopia’s rail investment is already bearing fruit, prompting similar activities from Tanzania. The $100-billion investment into East Africa is creating opportunities for new business and revenue models that can leverage the upgraded rail infrastructure to transform how companies operate in the region. Kenya’s regional SGR network will create a critical mass that will improve economies of scale, reduce unit costs and tariffs, and provide sufficient cash flow for debt repayments.

These developments are crucial: the UN estimates that 1.3 billion people will be added to Africa’s population by 2050, accounting for more than half of global population growth. Trade will increase dramatically: the African Development Bank estimates that Africa’s GDP could grow from a base of $1.7-trillion in 2010 to more than $15-trillion by 2060. Having the appropriate rail capabilities in place will be essential as the continent works toward achieving the UN Sustainable Development Goals, especially as it relates to Industry, Innovation and Infrastructure (Goal 9).

In an in-depth study, the African Development Bank found five key drivers of the development of African railways, namely:

* An increase in transport demand due to African economic growth, leading to new demand for transportation and better infrastructure;

* An increase in global supply chain competitiveness, demanding better and more integrated logistics, or what we would call digitally transformed supply chains;

* An increase in the number and size of large African metropolitan cities requiring new urban mass transport systems;

*New mining developments producing high-volume outputs, driving a need for higher capacity infrastructure capable of handling mining bulk volumes; and

*The existence of landlocked countries with poor connectivity to sea ports, which require reliable and high-capacity access to the sea.

Leveraging tech to ensure no passenger left behind

While trade and economic development is critical, attention should also be given to the importance of rail networks in transporting commuters. In many countries, poor rail infrastructure and outdated technology contribute to extensive delays in passenger rail networks, with disastrous consequences for productivity (among passengers) and profitability (for the rail operator). While accelerated rail investment and expansion can be noted across East Africa, the technology and digital transformation underpinning modern rail systems often come as an afterthought.

Emerging technologies hold immense promise in this regard: transportation models that are purpose-built to support the increasingly complex needs of consumers and business in a digital world have certain characteristics in common. Technologies such as IoT supported by advanced analytical capabilities are providing improved asset utilisation by enhancing capacity management and equipment maintenance. By matching equipment supply to demand in real-time and providing predictive capabilities to improve the effectiveness of maintenance on key rail assets, available capacity is maximised and associated operating costs are lowered. In addition, IoT enables rail operators to utilise sensors across the rail network to better passenger movements. When integrated with a powerful analytics platform, rail operators can start uncovering trends in passenger movements and predict when and where additional capacity is needed. By proactively meeting changing consumer needs, rail operators ensure uninterrupted service and improve customer satisfaction, both of which has positive knock-on effects on profitability.

SAP is supporting the digital transformation of Africa’s rail systems by providing the technology tools and platforms that bring industry best-practices and exponential technologies together in a single seamless framework. By implementing a digital core built on SAP HANA and the SAP Cloud Platform, rail operators get a single access point to better manage its supplier collaboration, workforce engagement, customer experience, and assets and supply chains. Flexible line-of-business extensions ensure rail operators have the technological support to reimagine their business models, simplify and streamline business process, and innovate at scale and speed.

Railways form the network of interconnected veins that supply the lifeblood of Africa’s economic growth and development. By ensuring the reliable and affordable delivery of people, products and commodities across the continent, Africa’s railways will play a starring role in the creation of a connected, prosperous continent. And with the support of powerful cloud-based platforms, rail operators can provide the seamless and reliable services that Africa’s increasingly sophisticated consumer and business markets demand.

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Umeme earmarks Ushs20.6 billion for dividend pay-out

Umeme Limited has today announced a Ushs12.7 dividend pay-out per ordinary share to all its shareholders for the six months ended 30 June 2018.

A top official said the total interim dividend pay-out of Ushs20.6 billion was based on the stellar performance of the company over the period of January to June 2018.

The dividend subject to deduction of withholding tax, where applicable, will be paid on or about 11 January 2019 to shareholders in the books of the company at close of business on 20 December 2018.

Commenting on the results, Umeme Managing Director, Mr. Selestino Babungi said the sector was on a steady growth after the demand by industrial consumers grew by 8.6%, up from the 7.5% registered in the same period the previous year.

“In simple terms, the sector is growing. Maximum demand grew just slightly under 600MW. The main drivers are the large industrial customers who are registering high annual growth rates of up to 13%,” Babungi explained.

He noted that the industrial demand for electricity was in line the GDP growth, which is projected to grow at 6% in the 2018/2019 financial, up from 3.9% in 2017, adding that GDP growth goes hand-in-hand with electricity demand.

Babungi pointed out that the setting up of National Cement Company and the new Hima Cement plant, the two new cement plants in Tororo and the expansion of Tororo Cement Industries, all of which were fully commissioned, boosted the industrial sales.

“Existing industrial consumers like Coca-Cola and Roofings have also boosted their production. The Buy Uganda, Build Uganda drive is helping a lot. The South Sudan and DR Congo markets have also reopened. Commercial use of electricity is fundamental. Industrial use is essential in up taking the increasing generation capacity,” he explained.

The giant utility also registered progress in the energy loss reduction targets in the six months of 2018 to 16.7% compared to 17.5% for the same period in 2017.

“We focused the half-year loss-reduction efforts on commercial losses and are in dialogue with the Electricity Regulatory Authority on specific approvals required for technical loss reduction investments,” Babungi said.

He disclosed that for these efforts, delegations from Nigeria and Mozambique, were expected to visit the utility to benchmark on how they are doing this when the regional utilities are struggling to tame their losses figures.

The company has also maintained an average collection rate of 99.2% over the last three years, while the revenue collection rate for the period under review stood at 102.8%, attributed to the rollout of prepaid metering, recoveries of past unpaid bills, timely payment by industrial customers, government agencies and provision of payment systems available 24 hours per day.

During the first half of 2018, the company added up to 82,373 customers to the grid, increasing our total customers to a record 1,207,664. The firm targets to add a total of 200,000 new customers to the grid by end of 2018.

Customers on prepaid metering increased to 76.3% of the customer base. Prepaid revenue from these customers represents 24% of the total revenue.

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A FORK IN THE ROAD: Report on the Legal, Business, Ethical and knowledge Status of Cooperatives in Uganda

With rising demand for complete and up-to-date database information on the legal, business, ethical and knowledge status of the cooperatives in Uganda to inform plans and actions of sector players on pursuit for a vibrant cooperative movement

A new report by The Uhuru Institute for social development (TUI) has found that Coops in Africa lagging behind and not part of the 300 top cooperatives in the world. Beyond finance more opportunities lie in social services and consumer cooperatives as evidenced by the successes in Europe, Asia, North America

The report provides an online database and a directory with details of 1449 cooperatives in 50 districts providing an opportunity for government and other stakeholders to build on.

It also provides an insight into the status of the cooperative movement in Uganda today. An alternative methodology and software for data collection and analysis which could be adopted and improved on for further data capture and reporting.

Despite efforts by all stakeholders in the cooperative movement, the research has established that the absence of cooperative identity in the work of government, that of cooperatives and the development partners is the reason for all the challenges facing the movement today. All initiatives must, therefore, be aligned to the cooperative identity and Uganda will have the most vibrant cooperative sector ever.

The report offers key lessons and recommendations on the Legal, Business, Ethical and knowledge Status of Cooperatives in Uganda

You can get yourself a copy today at UGX 20,000. At The Uhuru Institute, Bwindi Trust House, Plot 1 Katalima Crescent, Naguru P.O Box 27794, Kampala. Call: +256-414-581-453 or Email: uhuru@uhuruinstitute.org

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RATIN Informal Cross-border Trade Volumes for 2018-08-20

MAIZE

Border Source Country Destination Country Volume(MT)
Busia Border Uganda Kenya 1345
Gatuna Uganda Rwanda 100
Rusizi II Rwanda DRC 48
Lwakhakha Uganda Kenya 5.85
Goma Border Rwanda DRC 4.3

RED SORGHUM

Border Source Country Destination Country Volume(MT)
Busia Border Uganda Kenya 169
Gatuna Uganda Rwanda 36
Goma Border DRC Rwanda 10.4

WHEAT

Border Source Country Destination Country Volume(MT)
Gatuna Kenya Rwanda 50

RICE

Border Source Country Destination Country Volume(MT)
Rusizi II Rwanda DRC 89
Tunduma border Tanzania Zambia 70
Gatuna Tanzania Rwanda 70

MILLET

Border Source Country Destination Country Volume(MT)
Busia Border Uganda Kenya 330
Lwakhakha Uganda Kenya 0.63

MIXED BEANS

Border Source Country Destination Country Volume(MT)
Busia Border Uganda Kenya 442
Tunduma border Tanzania DRC 56
Lwakhakha Uganda Kenya 11.07

GROUND NUTS

Border Source Country Destination Country Volume(MT)
Gatuna Uganda Rwanda 30
Rusizi II Rwanda DRC 0.527

RED BEANS

Border Source Country Destination Country Volume(MT)
Tunduma border Tanzania Zambia 49

YELLOW BEANS

Border Source Country Destination Country Volume(MT)
Tunduma border Tanzania Zambia 90
Gatuna Uganda Rwanda 16
Goma Border Rwanda DRC 12.3

MAIZE MEAL

Border Source Country Destination Country Volume(MT)
Goma Border Rwanda DRC 9.7

SOYA BEANS

Border Source Country Destination Country Volume(MT)
Goma Border DRC Rwanda 6.98

MAIZE BRAN

Border Source Country Destination Country Volume(MT)
Goma Border DRC Rwanda 2600

SOURCE: RATIN

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THE YOUTH IN AGRIBUSINESS CARAVAN: Opportunities in Horticulture: Making the Most out of Available Resources

Opportunities in Horticulture: Making the Most out of Available Resources

Maureen Nyakato owns a horticulture farm in Kabarole. She supplies to major markets in Fort Portal. She has overcome the challenge of limited space, by planting in used car tires and polythene bags.