Recently, I had a debate with some Ugandan friends on the decision of government to build an international convention center in Munyonyo in partnership with Sudhir Ruparelia. Uganda will host the Non-Aligned Movement (NAM) summit in January 2024. So far, 88 heads of state and government have confirmed attendance.
The country already has an international conference center in the middle of Kampala at Serena Hotel. However, government felt that for purposes of NAM, the country needs a big and new one. The new convention center will have a main hall hosting 3,800 people, with 12 breakout session rooms. It will cost $47 million to build. Let me declare a conflict of interest: Sudhir is a friend.
Government through Uganda Development Corporation (UDC) entered a joint venture with Sudhir on a 50/50% basis. Each party contributed $10 million as equity. Government lent the consortium $27 million.
My Ugandan friends were angry that government is “giving Sudhir money”. They argued that Sudhir should have borrowed to build it. For them, government will never earn dividends from this investment.
To justify this, they said government co-invested with Sudhir in Speke Commonwealth Resort Munyonyo with $8 million for 25% shares in 2007 but has never earned dividends. They said the consortium will never repay the loan of $27 million.
I hold government of Uganda in contempt because it often fails to make cost-efficient decisions. However, I think this was their best investment decision. Why? Government wanted a large international convention center. It could have been for reasons of national prestige to “show-off”, which is understandable. But the convention center could also be a basis for promoting conference tourism in Uganda.
The government of Rwanda, perhaps the most developmentally serious on our continent, did exactly this with Kigali Convention Center and the attached Raddison Blue Hotel. Kigali is aggressively promoting conference tourism and succeeding.
An international convention center of the size Uganda is building in Munyonyo is not attractive to private investors. This is because conference tourism in not big enough to make such investment profitable. That is reason why no private investor has ever built one in Kampala and Sudhir would never go to a bank to borrow money to build such a white elephant.
Besides, Uganda has an international convention center at Serena. The Aga Khan who leased former Nile Hotel refurbished the hotel and has made lot of money from it. However, he has never refurbished the convention center part. Today it has stinking toilets, old furniture, creaking doors and glass windows filled with mold.
Yet a large international convention center can become profitable if there is world-wide marketing of it. However, no private investor can afford such a cost. This market failure creates a role for government.
A big convention center may not be profitable to private investors but it may be needed by the country to host big conferences which are of political importance or for reasons of prestige.
Government also spends money marketing Uganda as a destination for tourism. It can, like Rwanda, aggressively promote Meetings, incentives, conferences and exhibitions (MICE) tourism as a strategic goal. The benefits of growing conference tourism in the wider economy will far exceed the losses incurred on the profit and loss account of the convention center.
When conference tourism grows, an international convention center like the one in Munyonyo can become profitable. This would make it possible for the consortium to make profits, repay the loan and even pay dividends to government. It would also incentivise Sudhir to buy government shares since the state is not in the business of doing business. Even here, the state would have indirectly subsidised the convention center by incurring the cost of marketing Uganda abroad as a destination for conference tourism. This is what strategic intervention by the state entails.
Why Munyonyo Commonwealth?
Munyonyo resort was the best place to place for this convention center because it is out of town and is connected to Entebbe International Airport via a modern expressway. This means we don’t have to close down the city with its chronic traffic jams, not to mention giant crater-like potholes in the roads when international guests, especially 88 heads of state, visit. The resort has 475 rooms including 59 presidential suites. Built on 105 acres of land, it has two swimming pools (one of them Olympic size), 20 other conference rooms and halls, horse riding, water sports, jogging tracks, etc.
It makes a lot sense for government to ride on these benefits by placing a convention center there. Finally, because a private investor already runs the resort, government will not need to spend more money on maintenance of the convention center. Thus, even if the consortium did not pay dividends or repay the loan, government has limited its liability while retaining an investment with many aforementioned potential benefits to the wider economy and society.
Besides, any discussion of this matter has to consider the alternative options and the tradeoffs involved. The alternative would have been for government to find land, build an international convention center with an adjacent hotel and put many other facilities in a place. It would also have had to ensure it causes the least traffic crisis in Kampala during major international conferences. Anyone knowing our government would predict that such an effort would have taken 30 years, heightened quarrels and recriminations and cost not less than $2.5 billion. I say this because even the super-efficient and uncorrupt government of Rwanda spent almost 12 years to build an international convention center at a cost of $300m.
Recently, while at lunch with him, President Paul Kagame told me the story of myriad frustrations he faced and the decisive interventions he had to make to ensure that the project succeeds.
The hostility to the Munyonyo project is mostly driven by “nugu” (envy). Many Ugandans feel unhappy when they see a Ugandan doing many great things like Sudhir is doing. It even hurts them more when what looks like state patronage going to a person who is rich already. Yet Sudhir never sought to build a convention center. He was approached by government to do so because they needed it urgently. The request was made in November 2021 and took nine months to negotiate the final agreement, which was signed in August 2022 delaying commencement of construction. Even today, government has not paid the final $10 million, on a project that is supposed to be completed in November 2023. Imagine Uganda is turning around this project in two years at $37 million. Unbelievable!!
Andrew Mwenda is a veteran journalist and the founder of the Independent Magazine amwenda@independent.co.ug
Thanks for a marvelous posting! I actually enjoyed reading it, you are a great author. I will always bookmark your blog and will often come back at some point. I want to encourage you to ultimately continue your great posts, have a nice afternoon!
Awesome website you have here but I was curious about if you knew of any message boards that cover the same topics talked about in this article? I’d really love to be a part of online community where I can get advice from other knowledgeable individuals that share the same interest. If you have any recommendations, please let me know. Many thanks!
Greetings from Los angeles! I’m bored to tears at work so I decided to check out your website on my iphone during lunch break. I enjoy the knowledge you present here and can’t wait to take a look when I get home. I’m shocked at how quick your blog loaded on my mobile .. I’m not even using WIFI, just 3G .. Anyhow, awesome site!
Wow, that’s what I was looking for, what a data! present here at this webpage, thanks admin of this web site.
Hi my family member! I want to say that this article is awesome, great written and come with almost all important infos. I’d like to see more posts like this .
I have read so many articles or reviews about the blogger lovers but this piece of writing is really a good post, keep it up.
I couldn’t resist commenting. Well written!
Hi there, I found your web site via Google whilst searching for a similar topic, your site got here up, it seems good. I have bookmarked it in my google bookmarks.
Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your web site is magnificent, let alone the content!
Thanks for ones marvelous posting! I truly enjoyed reading it, you may be a great author. I will be sure to bookmark your blog and will eventually come back sometime soon. I want to encourage you to definitely continue your great job, have a nice afternoon!
cheap fenofibrate order tricor 200mg online cheap tricor canada
Do you have a spam issue on this site; I also am a blogger, and I was wanting to know your situation; many of us have created some nice methods and we are looking to swap solutions with other folks, be sure to shoot me an e-mail if interested.
I love your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you? Plz answer back as I’m looking to design my own blog and would like to know where u got this from. kudos
Hello would you mind letting me know which hosting company you’re utilizing? I’ve loaded your blog in 3 completely different web browsers and I must say this blog loads a lot quicker then most. Can you suggest a good web hosting provider at a honest price? Many thanks, I appreciate it!
buy generic cleocin 300mg purchase sildenafil for sale buy sildenafil 100mg generic
buy tretinoin without a prescription order avanafil 100mg generic avanafil price
What i do not realize is actually how you’re now not really a lot more well-favored than you may be right now. You are so intelligent. You know therefore significantly relating to this matter, produced me personally consider it from numerous various angles. Its like men and women aren’t fascinated unless it’s something to accomplish with Lady gaga! Your own stuffs nice. Always maintain it up!
tamoxifen 20mg oral cheap betahistine 16mg purchase symbicort online cheap
tadacip 10mg uk order indocin 50mg for sale indocin over the counter
cefuroxime order online order robaxin without prescription methocarbamol canada
desyrel 100mg canada order desyrel 50mg online cheap oral clindamycin
lamisil order online lamisil for sale legitimate online slots for money
You can definitely see your enthusiasm in the article you write. The world hopes for more passionate writers like you who aren’t afraid to mention how they believe. Always go after your heart.
order aspirin online cheap casino slot games quick hits free online slots
essays help paper write buy generic suprax 200mg
It’s a shame you don’t have a donate button! I’d without a doubt donate to this brilliant blog! I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account. I look forward to brand new updates and will talk about this site with my Facebook group. Chat soon!
help me with my essay academic writers online gambling addiction
cost amoxicillin 250mg anastrozole 1mg cost biaxin 250mg without prescription
order calcitriol 0.25 mg order fenofibrate 200mg pill order generic tricor 200mg
buy catapres without a prescription spiriva 9 mcg ca order tiotropium bromide 9mcg pill
acne medication pills that work how do dermatologists treat acne trileptal 300mg price
buy minocin 50mg buy minocin pills oral requip 1mg
order alfuzosin 10 mg pills alfuzosin 10 mg cheap best painkiller for abdominal pain
strongest sleeping pills for adults order sleeping tablets online uk online weight loss clinic prescription
buy generic femara 2.5mg buy femara 2.5 mg sale abilify 30mg pills
Yes! Finally something about %keyword1%.
Hi there! Do you know if they make any plugins to help with SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good results. If you know of any please share. Appreciate it!
With havin so much written content do you ever run into any problems of plagorism or copyright violation? My website has a lot of completely unique content I’ve either authored myself or outsourced but it appears a lot of it is popping it up all over the web without my authorization. Do you know any solutions to help reduce content from being ripped off? I’d certainly appreciate it.
new stop smoking medication herb that helps quit smoking pain pills no prior prescription
medroxyprogesterone uk praziquantel 600mg price hydrochlorothiazide 25 mg drug
Just want to say your article is as surprising. The clearness in your post is simply cool and i can assume you’re an expert on this subject. Well with your permission allow me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please keep up the gratifying work.
best antiviral medication for shingles antiviral drugs for herpes simplex new drug list for 2023
We stumbled over here from a different web page and thought I might check things out. I like what I see so now i’m following you. Look forward to looking over your web page again.
It’s awesome for me to have a site, which is helpful in favor of my knowledge. thanks admin
cyproheptadine 4mg canada ketoconazole 200 mg cheap buy ketoconazole 200 mg generic
black toenail while taking lamisil medical treatment for herpes cheapest online prescription refill
Hey there, You have done an excellent job. I will definitely digg it and individually suggest to my friends. I am sure they’ll be benefited from this site.
cymbalta 40mg for sale duloxetine 40mg cheap modafinil 200mg brand
whoah this weblog is magnificent i love studying your articles. Stay up the great paintings! You understand, a lot of individuals are looking round for this information, you can help them greatly.
best natural remedies for gastritis side effects of vasodilators temporary relief for uti pain
phenergan without prescription stromectol 3mg oral stromectola online
It’s a shame you don’t have a donate button! I’d most certainly donate to this outstanding blog! I suppose for now i’ll settle for bookmarking and adding your RSS feed to my Google account. I look forward to brand new updates and will share this blog with my Facebook group. Chat soon!
At this moment I am going to do my breakfast, when having my breakfast coming yet again to read more news.
morning after pill delivered get prescribed birth control online best supplement for semen volume
Hey There. I found your blog using msn. This is an extremely well written article. I will be sure to bookmark it and come back to read more of your useful information. Thanks for the post. I will definitely comeback.
deltasone 5mg oral buy amoxicillin 500mg without prescription buy amoxil 1000mg for sale
It’s my belief that mesothelioma is most deadly cancer. It contains unusual features. The more I look at it the more I am certain it does not react like a true solid tissue cancer. When mesothelioma can be a rogue viral infection, hence there is the potential for developing a vaccine and also offering vaccination for asbestos subjected people who are at high risk of developing potential asbestos relevant malignancies. Thanks for expressing your ideas for this important ailment.
medication to neutralize stomach acid why does my gas smell like rotten eggs medication that make you belch
I used to be suggested this web site via my cousin. I am no longer sure whether or not this submit is written by him as nobody else know such unique about my problem. You are wonderful! Thank you!
Normally I do not learn article on blogs, however I would like to say that this write-up very pressured me to try and do so! Your writing style has been surprised me. Thanks, quite great post.
zithromax oral how to get omnacortil without a prescription order gabapentin 800mg
Hi, just wanted to say, I enjoyed this post. It was funny. Keep on posting!
buy urso generic cetirizine online buy zyrtec order online
http://www.spotnewstrend.com is a trusted latest USA News and global news trend provider. Spotnewstrend.com website provides latest insights to new trends and worldwide events. So keep visiting our website for USA News, World News, Financial News, Business News, Entertainment News, Celebrity News, Sport News, NBA News, NFL News, Health News, Nature News, Technology News, Travel News.
http://www.bestartdeals.com.au is Australia’s Trusted Online Canvas Prints Art Gallery. We offer 100 percent high quality budget wall art prints online since 2009. Get 30-70 percent OFF store wide sale, Prints starts $20, FREE Delivery Australia, NZ, USA. We do Worldwide Shipping across 50+ Countries.
I have taken note that of all different types of insurance, medical health insurance is the most marked by controversy because of the discord between the insurance coverage company’s need to remain making money and the client’s need to have insurance coverage. Insurance companies’ income on wellbeing plans are extremely low, thus some corporations struggle to generate income. Thanks for the ideas you write about through this web site.
buy atomoxetine without a prescription zoloft canada zoloft 100mg drug
I really appreciate this post. I?ve been looking all over for this! Thank goodness I found it on Bing. You’ve made my day! Thanks again
Nice replies in return of this difficulty with real arguments and explaining all about that.