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Climate change,education, and technology to fuel more inequalities- UNDP report

The newly released United Nations Development Programme (UNDP) Human Development Report the in Uganda, indicates that new dimensions of inequalities are opening up around education, technology and climate change pushing the wealthiest ahead, undermining further progress and making it harder for those left behind to catch up.

According to the report, the new face of inequality is not beyond solutions and warns that climate change will affect the poor and widen existing inequalities.

These inequalities extend to essential services like education and health, 42 percent of adults in low human development countries have primary education compared with 94 percent in very high human development countries.  Similarly, “Only 3.2 percent of adults in low human development countries have a tertiary education compared with 29 percent in developed countries.

The report also shows that in most cases, inequality begins before birth, grow and may be passed across generations. To that end, it recommends that measures to address inequalities must start at or before birth from pre-natal care, to education, to the labour market and retirement.

“Between 2030 and 2050 climate change is expected to cause an additional 250,000 deaths a year from malnutrition, malaria, diarrhea and heat stress. Hundreds of millions more people could be exposed to deadly heat by 2050, and the geographical range for disease vectors such as mosquitoes that transmit malaria or dengue will likely shift and expand.” reads in part of the report Launched by David Bahati, the State Minister for Planning today at the Golf Course Hotel

The report adds that, Climate change will hit the tropics harder first, and many developing countries are tropical.

In agreement with the report findings, Ms. Elsie Attafuah, the Resident Representative UNDP said, “What is clear is that inequalities, once they exist among people, regions and several divides, tend to be intergenerational and extremely difficult to break. The poor have higher chances of remaining poor. Once ill-educated, with poor health standards, the off- springs and their descendants will most likely follow the same path.”

She said the report gives us a message of hope; that inequalities can be addressed if action is taken now before imbalances in economic power become entrenched.

According to the report, Africa has experienced one of the most significant improvements in human development as measured by Human Development Index (HDI). Between 1990 and 2018 life expectancy increased by more than 11 years.

For the first time this year, an African country, Seychelles –has moved into the very high human development group. Four countries  Botswana, Gabon, Mauritius and South Africa are also now in the high human development group, while 12 countries  Angola, Cabo Verde, Cameroon, Congo, Equatorial Guinea, Eswatini, Ghana, Kenya, Namibia, Sao Tome and Principe, Zambia, and Zimbabwe  are in the medium human development group. Botswana enjoys the region’s highest increase in HDI rank between 2013 and 2018, rising 11 places in the rankings.

While poverty rates have declined across the continent, progress has been uneven. If current trends continue, the report asserts that, nearly 9 of 10 people in extreme poverty more than 300 million will be in Sub-Saharan Africa in 2030.

And among countries that are off track to achieve the SDGs by 2030, most are in Africa. South Africa experiences the highest rate of income inequality in the world with over half the country’s income is held by the richest 10 percent.

The report puts Uganda’s HDI value for 2018 to 0.528 which places it in the low human development category positioning it at 159 out of 189 countries and territories. The rank is shared with Tanzania. Between 1990 and 2018, Uganda’s HDI value increased from 0.312 to 0.528, an increase of 69.1 percent.

Uganda’s 2018 HDI of 0.528 is above the average of 0.507 for countries in the low human development group and below the average of 0.541 for countries in Sub-Saharan Africa. From Sub-Saharan Africa, countries which are close to Uganda in 2018 HDI rank and to some extent in population size are Madagascar and Tanzania, which have HDIs ranked 162 and 159 respectively.

In terms of HDI indicators, between 1990 and 2018, Uganda’s life expectancy at birth increased by 17.1 years, mean years of schooling increased by 3.3 years and expected years of schooling increased by 5.6 years. Uganda’s GNI per capita increased by about 131.0 percent between 1990 and 2018.

The publication also reports on the performance of nations in Gender Inequality Index (GII), which reflects gender-based inequalities in three dimensions reproductive health, empowerment, and economic activity. Reproductive health is measured by maternal mortality and adolescent birth rates; empowerment is measured by the share of parliamentary seats held by women and attainment in secondary and higher education by each gender while economic activity is measured by the labour market participation rate for women and men.

According to the report, Uganda has a GII value of 0.531, ranking it 127 out of 162 countries in the 2018 index. The report says that 34.3 percent of parliamentary seats in Uganda are held by women, and 27.4 percent of adult women have reached at least a secondary level of education compared to 34.7 percent of their male counterparts.

On the other hand, for every 100,000 live births, 343.0women die from pregnancy related causes; and the adolescent birth rate is 118.8 births per 1,000 women of ages 15-19. Female participation in the labour market is 67.2 percent compared to 75.0 for men.

The report also goes beyond income and reports on the deprivations that people face using a

Multidimensional Poverty Index (MPI) which identifies deprivations suffered by individuals in health, education and standard of living and 10 indicators. The report shows that 55.1 percent of the Ugandan population are multidimensionally poor while 24.9 percent are vulnerable to multidimensional poverty.

If the deprivation score is 33.3 percent or greater, the household (and everyone in it) is classified as multidimensional poor. Individuals with a deprivation score greater than or equal to 20 percent but less than 33.3 percent are classified as vulnerable to multidimensional poverty.

Prof. Pamela Mbabazi, the Chairperson National Planning Authority said that most of the report findings align with observations made in Uganda’s national planning frameworks and its prescription of areas for redress align with development priorities identified in Uganda’s third National Development Plan now in its final stages of design.

These include improving the quality of education, jobs creation, reducing dependency on subsistence economy, combatting climate change cover, enhancing value addition in key growth opportunities, digitization of the economy and reducing vulnerabilities.

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Kenyan community funds Makerere students to riot against Ruto

DP-William Ruto

A section of Kenyan community in Uganda who don’t agree with Kenya’s Deputy President William S. Ruto are allegedly behind Makerere University students who want to disrupt the groundbreaking ceremony for the William Ruto S. Ruto on African Studies Saturday in the morning.

The Kenyan group alleges that Ruto is corrupt and is not in good books with his boss President Uhuru Kenyatta.

Ruto was among Kenyans indicted by the ICC on allegations of leading crimes against humanity in the 2007-8 general elections in Kenya where over 1000 people lost their lives due to violence.

The goals of the institute are; to draw on the core strengths of diversity of disciplines and experience to develop and refine methodologies for the study of Africa; develop innovative approaches to teaching and learning about Africa; collaborate with similar Institutes in Africa and globally to deepen the understanding of Africa in all its complexity and evolve common perspectives on global issues; strengthen relationships between academic and indigenous intellectuals as the basis for reclaiming indigenous knowledge, and integrate this into local communities.

Others are to establish an environment for flourishing study and debate on African languages, arts, philosophies, social and political systems; enhance and enrich intellectual and cultural life and contribute to the discussion, analysis and resolution of critical developmental challenges facing African Societies through research and extension work.

Who is William S. Ruto

William Kipchirchir Samoei Arap Ruto, on December 21, 1966, is the Deputy President of Kenya since 2013. He served as the Acting President of Kenya between 5 and 8 October 2014 when President Uhuru Kenyatta was at the Hague to answer questions related to political violence in 2007/2008.

He previously served in various ministerial positions, including the Ministry of Home Affairs, the Ministry of Agriculture, and the Ministry of Higher Education Science and Technology. He was Secretary General of KANU, the former ruling political party, and the MP for Eldoret North Constituency between December 1997 and January 2013.

He won the seat in the 1997 Kenyan election after defeating Reuben Chesire. He was appointed to the position of Assistant Minister in the Office of the President by President Daniel arap Moi in 1998.

He was promoted to be Minister for Home Affairs in August 2002. Ruto also previously served as the Chairman of the Parliamentary Select Committee on Constitutional Reform in the 9th Parliament.

On 4 March 2013, he became the first Deputy President of Kenya, when he and Uhuru Kenyatta were declared winners of the hotly contested presidential election. The duo won on a Jubilee Coalition ticket.

Ruto was among the list of people who were indicted to stand trial at the International Criminal Court (ICC) for their involvement in Kenya’s 2007–08 political violence. However, the ICC case was faced with challenges especially concerning withdrawal of key prosecution witnesses. In April 2016, the International Criminal Court dropped the charges against Ruto.

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Arteta appointed Arsenal head coach

arteta

Arsenal have confirmed the appointment of Mikel Arteta as their new head coach.

The former Arsenal midfielder takes up his first job in management, leaving his role as assistant coach under Pep Guardiola at Manchester City.

The 37-year-old succeeds Unai Emery, who left Emirates Stadium last month, on a three-and-a-half-year deal.

“This is a huge honour,” Arteta told the club’s official website. “Arsenal is one of the biggest clubs in the world.

“We need to be competing for the top trophies in the game and that’s been made very clear to me in my discussions with Stan and Josh Kroenke, and the senior people from the club.

“We all know there is a lot of work to be done to achieve that but I am confident we’ll do it. I’m realistic enough to know it won’t happen overnight but the current squad has plenty of talent and there is a great pipeline of young players coming through from the academy.”

Interim head coach Freddie Ljungberg picked up four points from the last four matches, leaving the Gunners in 10th, seven points adrift of Chelsea in fourth.

Arteta made 119 Premier League appearances for Arsenal, having joined the north Londoners from Everton in August 2011.

The club say Arteta will take charge from Sunday in preparation for the trip to AFC Bournemouth, after their match away to Everton, who he spent seven years with as a player, on Saturday.

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URSB exposes AG William Byaruhanga in the Nakasero Primary School land saga

A leaked document has revealed the real owners of Pine Investments Co. Limited, confirming that the Attorney General (AG) William Byaruhanga owns 400 shares. Other shareholders are Charles Lubega and Henry Lubwama, also taking 400 shares each.

The company’s other directors are; Melinda K. Atubet, Dorothy Lubega and Jacquelyn. MMAKS Advocates act as Company Secretary.

The company’s share capital is Shs120 million, divided into 1200 ordinary shares of Shs100, 000 each.

The company is alleged to have acquired land formerly belonging  to Nakasero Primary School through unclear circumstances. The school is owned by  the  government.

Prime Minister, Dr. Ruhakana Rugunda days ago told MPs that the government would probe circumstances under which Pine Investments Co. Limited acquired the school’s land. The company wants to sell the same land back to the government.

“Government is going to investigate these allegations. In the next sitting, the government will provide a preliminary report about this matter, we take allegations being made seriously especially ownership of the land,” he said on Wednesday while responding to MP Latiff Ssebaggala who warned that Ugandan taxpayers were bound to lose billions of shillings if government proceeds to buy the land from the company.

 “We are likely to lose taxpayers’ money, the land which they are putting pressure that Government buys was part of Nakasero Primary School land and it was taken under unclear circumstances and they are selling it back to Government,” Ssebaggala said.

A whistleblower petitioned Speaker Rebecca Kadaga on grounds that Pine Investments Co, was being fronted to win the contract to sell three acres of land to the Ministry of Finance to construct headquarters of Afro Exim bank in Uganda.

This was after officials of Afro Exim Bank approached President Yoweri Museveni with a proposal to build a bank in Uganda, a proposal the president welcomed with a conditionality for the bank to establish its headquarters in Uganda.

Four companies are said to have expressed interest in selling land including; Pine Investments Co which offered 2.2 acres near Nakasero Primary School at US$4 million (about Shs14.676 billion) per acre, Vara Enterprise offered 2.4 acres in Bugolobi with the company settling for US$3.1 million (about Shs11.366 billion). SGL proposed three acres at Kololo Lugogo bypass at $2.7 million (about Shs 9.896 billion).

Kadaga asked the Prime Minister to assure the country that government won’t be duped into buying the land whose ownership is under contention.

“That is a serious allegation if it is true if the land being sold is actually government land at an exorbitant price and possibly involving a member of your cabinet cost. Can you undertake that nothing shall happen, that government will not be forced to buy that land before you come back to this house,” Kadaga said.

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She Cranes finish 6th in 2019 World Netball rankings

she cranes players

After a busy year of netball, the Uganda National Netball Team, known as ‘She Cranes’ finish sixth in the 2019 International Netball Federation (INF) World Rankings.

The She Cranes complete the year with a total of 3,928 points and a rating of 123.

Uganda remain the second in Africa behind South Africa (5th). Malawi (7th), Zimbabwe (13th) and Zambia (15th) complete the continent’s top five.

The Africa Netball Cup allowed Zimbabwe to move up to 13th, while Zambia retained their place at 15th and Kenya enter the world rankings at 39th.

After the M1 Nations Cup, Namibia move up by 3 places to 30th, Botswana move to 24th while Ireland move down to 26th and Papua New Guinea move down to 31st.

The overall rankings reflect the games played up to 2nd of December 2019 which include the Netball Europe Open Championship, the Canada – America test series, the Constellation Cup, the Africa Netball Cup, Battle of the Saints, the M1 Nations Cup, the Southeast Asian Games and the South Africa test series against England.

The world rankings see no change within the top 5, with Australia retaining their place in 1st after their performance at the Constellation Cup. New Zealand consolidate their place in 2nd, England remain 3rd followed by Jamaica in 4th and South Africa.

After a strong performance at the Netball Europe Open Championship, Wales move into the top 10 in 9th place, followed by Trinidad and Tobago who move up from 11th to 10th, with Northern Ireland moving down two places to 11th.

Following the Battle of the Saints, St Kitts and Nevis re-enter the rankings at 27th, Antigua and Barbuda move to 36th, Cayman Islands rise 7 places to 28th, and St Maarten move down to 44th.

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A “Meeting of Minds” Report identifies five main challenges facing African banks

Bank of Uganda regulates all commercial banks in the country

In October 2019, during the tenth Africa Forward Together (AFT) forum in Mauritius and spearheaded by Mauritius Commercial Bank (MCB) a special workshop aptly called “Meeting of Minds” session leveraged the insight and brainpower of over 35 C-level and senior banking leaders across the African region and beyond.

The aim of the session was to identify and prioritise the main challenges faced by their banks in five distinct but interlinked areas that were purposefully scoped to look beyond numbers:, Expertise, people, operational efficiency, risk and corporate Sustainability

Further to the “Meeting of Minds” workshop, a report probing into discussions has been published this week by MCB. It identifies five main challenges facing African banks and financial institutions, as follows: Lack of technical expertise amidst the increased cybersecurity risk, Know Your Corporate (KYC) issues hampering financial inclusion, talent management, retention and development, customers’ education and staff skills gap, IT & digitalisation and transformation programme and expertise

In the editorial of the report, MCB Group CEO, Pierre-Guy Noël speaks of an alignment of African banks and institutions on the key issues they have to face. “Considering the relative heterogeneity of African markets in terms of distinct characteristics and level of maturity in consumer behaviour, there was a remarkable alignment on the challenges facing the region’s financial institutions,” he said.

On the main threat posed by cybesecurity, MCB Group CEO observed : “Additionally, there is a lack of appropriate risk assessment and framework that caters for the exigencies arising from the use and adoption of new digital solutions. The rise of cybersecurity attacks and other cyber frauds were therefore highlighted as the most significant challenge, compounded by the lack of technical expertise and familiarity at senior levels in these fields (…) In parallel across the rest of most institutions, is the significant shortage of technical expertise and know-how in IT, digitalisation and related transformation programmes…”

The lack of KYC and other compliance frameworks “to facilitate the on-boarding of unbanked segments remain a key obstacle for regional banks to further financial inclusion. This challenge emerged in many discussions”, added Mr. Noël, who also stresses upon the challenge of developing solutions from customer segments that are distinct and sometimes unrelated (urban customers with high digital literacy vs rural unbanked segments requiring traditional supports and channels).

Last but not least, sustainable development and the necessity to embed its principles into corporate DNA are also issues highlighted by Mr. Noël. “The alignment of long-term value to stakeholders with corporate sustainability requires a considerable strategic push, a deep adjustment of corporate culture and a more measured risk-management mindset. This adjustment will have to take place sooner than later, because a trusted bank with a wider positive impact is increasingly being upheld as the minimum standard vis-à-vis stakeholders ranging from our own customers and central banks, to providers of lines of credit”.

MCB’s CEO insists on the fact that the insights of the report can help prioritise strategies for the future and promote awareness “that collaboration and partnership within the region has potential to address many of the common challenges facing African banking and financial services today”.

Based in Mauritius, MCB Group is currently ranked 1st in East Africa, 19th in Africa and 613th among the Top 1000 Banks in terms of Tier 1 capital. The Group is investment grade- rated by Moody’s and Fitch, and currently ranks 31st in Africa in terms of assets (Jeune Afrique Top 200 Banks, The Africa Report, September 2019) and 81st on the African continent in terms of market capitalisation (African Business Top 250 Companies, May 2019).

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Ugandan gets MBE honour

Atim being honoured by Prince William

Ugandan-born stage actress Sheila Atim has received a prestigious MBE (Member of the British Empire) honor from Prince William (Grandson of Queen Elizabeth).

Atim, 28, is best known for her role as Marianne in the original production of Girl from the North Country and was given the honour by the Duke of Cambridge. She went to the UK from Uganda at only five months old.

She has also played Emilia opposite Mark Rylance’s Iago in Othello, at the Globe, in 2018.

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Rwandan national could face 30 years in jail over genocide

Fabien Neretse (left)

Belgian prosecutors have urged court to impose a 30-year jail term on a former Rwandan official convicted of genocide for his part in his country’s 1994 killing of minority Tutsis.

Fabien Neretse was arrested in France in 2011 and was found guilty of genocide and war crimes on Thursday after a trial in the Brussels high court.

Neretse, who protested his innocence throughout the trial, is the first person to be convicted in Belgium on a genocide charge.

He was also convicted of war crimes for 11 murders in Rwanda, under Belgium’s code of universal jurisdiction for the most serious offences.

Neretse remained silent in the dock as the verdict was being delivered on Thursday, but many have a chance to speak during Friday’s sentencing hearing.

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Tanzania: African Development Bank lends $272 million for construction of Msalato International Airport

Msalato International Airport Artistic impression

The Board of Directors of the African Development Bank has approved a US$272.12 million loan to Tanzania for the construction of a new international airport in the capital Dodoma.

The funding package, approved on Wednesday, comprises a US$198.6 million loan from the Bank,  US$23.52 million from the African Development Fund (ADF) and $50 million in co-financing with the Africa Growing Together Fund (AGTF) — a co-financing facility of the People’s Republic of China managed by the Bank.

The new airport will be built in the district of Msalato, 12 kilometres from the capital.

The project involves the construction of high-capacity airport infrastructure to meet the expected growth in air transport from the city’s new role as the administrative capital of Tanzania. Work will be carried out over four years and will include a passenger terminal, a runway, air navigation equipment. The project includes other related operational services such as a fuel distribution company, water supply systems, electrical power distribution substations and a fire-fighting service.

The new facility is expected to handle at least 50,000 aircrafts and a million passengers per year, most of which will be international. It will benefit and serve more than 200 million passengers in East Africa, as well as international trade networks, and especially business travellers and tourists.

“An expanded air transport network in Dodoma, together with the ongoing high-speed railway construction on the central corridor, are necessary infrastructure investments to help unlock and disperse spatial development in the countryside. This will strengthen the city’s potential as a strategic growth pole in keeping with Tanzania’ national development aspirations of fostering shared growth for all the regions,” said Amadou Oumarou, the Director of the Bank’s Infrastructure and Urban Development Department.

As of late November 2019, the African Development Bank portfolio in Tanzania comprised of 21 public and two private-sector operations, with a total commitment of approximately $2.1 billion. The transport sector alone accounts for 51% of project funding, followed by energy (16%), water and sanitation (12%), finance (6%), agriculture (6%), multisector interventions (5%) and social projects (4%).

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Striking the right balance between sustainable development and sustainable debt

Kristalina Georgieva

By Kristalina Georgieva

Over the past two decades, sub-Saharan Africa has made considerable economic progress: extreme poverty levels have declined by one third; life expectancy has increased by a fifth; and real per capita income has grown by about 50 percent on average. Yet, sub-Saharan Africa is still only half-way to meeting the Sustainable Development Goals.

To achieve these goals, sub-Saharan Africa will need financing. One of the ways to access financing is through borrowing. It makes sense for governments to incur debt if done wisely. If debt is used to finance projects that boost productivity and living standards, such as investing in roads, schools, and hospitals—and if governments can recoup enough of the benefits of these investments to repay the incurred debt—then borrowing is worthwhile.

But room for borrowing has become more limited in this region as public debt levels increased rapidly between 2011 and 2016—they have since stabilized at around 55 percent of GDP on average. Countries in the region have also relied more heavily on commercial borrowing on domestic and international financial markets—such borrowing accounted for more than 70 percent of the increase in debt stock this decade. This shift to non-concessional financing means more spending on debt service, and less on social and infrastructure investment.

It is clear that sub-Saharan African countries will not be able to simply “borrow their way” to the SDGs.

So, what is needed? This was the topic of a conference organized by the IMF together with the Government of Senegal on December 2, in partnership with the United Nations and the Cercle des économistes. Dakar was a fitting venue as Senegal has launched its Plan Sénégal Émergent aimed at transforming its economy, creating jobs, and boosting living standards. It was also apt because, as I told the conference attendees, policymakers can draw inspiration from the Lions of Teranga—Senegal’s national soccer team, which impressed everyone at last year’s Africa Cup of Nations.

A balanced approach

The Lions of Teranga’s success is based on a balanced approach—between the urge to attack and the need to defend, between individual efforts and team performance. Similarly, Africa is seeking to find the right balance between financing development and safeguarding debt sustainability, between investing in people and upgrading infrastructure, between long-term development objectives and pressing immediate needs. In short, a balanced approach is needed; and, in order to get there, all stakeholders will need to raise their game.

There are five powerful tactics that we can all pursue to find the right balance between development and debt, three directed at sub-Saharan policymakers and two at the international community and the private sector.

The first tactic is to generate higher public revenue. This is an area where sub-Saharan Africa lags other regions. We estimate that revenue collection is 3–5 percentage points of GDP below revenue potential. Closing that gap can be done, as shown by the good example of Uganda, where, with technical support from the IMF, reforms helped raise the revenue-to-GDP ratio from 11 percent in 2012 to almost 15 percent last year.

The second tactic is to make investment spending more efficient. The reality is that only about 60 percent of the region’s infrastructure spending translates into public capital stock. For every dollar spent, you are getting only about 60 cents worth of assets.

The third tactic is to strengthen public debt management. A key objective is to boost debt transparency by providing accurate, comprehensive, and timely data. This in turn can help build trust with investors, support domestic capital markets, and reduce debt service costs.

The global team

And yet, even as countries pursue the three tactics, we all need to do more. Boosting domestic resources is critical, but not enough. Even strong domestic efforts are likely to cover just a quarter of the estimated SDG needs. So, the global team also needs to do more.

So, fourth tactic: Advanced economies can do more, especially when it comes to aid. The goal is to raise official development assistance to 0.7 percent of donors’ national income. Donors could also focus more on infrastructure by providing grants and concessional financing for projects with credibly high rates of return.

Fifth tactic: We also need to bring in more private-sector players—including more foreign direct investment—to help close the significant financing gap. Responsibility for achieving the SDGs must begin with efforts by the public sector, but it cannot end there. Above all, we need to ensure that private and public players can both end up on the winning side. A good example can be “blended finance,” which brings together grants, concessional financing, and commercial funding.

How can we encourage risk-sharing? How can we scale up development finance for the benefit of all? These are just some of the issues that Africa is now grappling with. But it is clear that we all benefit if we act jointly to promote the good of Africa. As the Senegalese proverb puts it: “Whatever one person can do, two people can do it even better.” That is the spirit of the Lions of Teranga. It is the same spirit that lies at the heart of what we are trying to achieve across sub-Saharan Africa.

Kristalina Georgieva is President of IMF

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