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Bus companies hike fares as thousands rush to villages for Christmas

Congested bus park

Some bus companies in Uganda have sharply hiked transport fares as Ugandans living in urban areas rush to their home villages to enjoy Christmas festivities with their relatives.

Currently, many passengers in Kampala are stranded in various bus parks around Kampala as the available buses are few to transport them at ago to upcountry homes. They are waiting for those coming from upcountry.

Transport fares range from Shs3500 to Shs100, 000 for those travelling to Juba.

Bus managers like always, when it comes to this period of the year, say the sharp increase in transport fares is meant to compensate for fuel consumption from upcountry as a few passengers board to Kampala. Taxi operators to places like Mbale, Tororo and Busia have also upped their fares.

“We have increased transport fares because when we return to Kampala, the taxi is almost empty with a few passengers yet we have to refill fuel and pay taxes,” said Abdu Kafeero a taxi operator who operates between Kampala and Mbale, which distance is normally charged Shs10, 000 but has now rose to Shs35000 from Kampala due to many clients going for Christmas.

Meanwhile, Y.Y Coaches has maintained its record of not increasing the fares. Isaac Olanya, the Manager at Y.Y Coaches says the fare is stagnant at Shs25, 000 from Kampala to Lira as other Companies charge between Shs30, 000 and Shs40, 000.

A booking assistant at Bakuli Bus Terminal for Buses going to western Uganda says the rates depend on the influx of passengers and availability of buses in the park.  To Western Uganda, different Companies have introduced different fares in accordance to the number of travelers.

The bus operators say the hiked transport fare rates were agreed upon with the Transport Licensing Board under the Works and Transport Ministry last Friday. The board allowed the increment on condition that they rest all their drivers and turn men who have operated one way during the return journey for all destinations above 300 Kilometers.

However, Eagle Online understands some private car owners, schools and other institutions have taken advantage of the Christmas season to offer their vehicles for commercial purposes. They are transporting passengers upcountry as well.

Current Transport fares for selected routes

Kampala -Juba = 100,000

Kampala-Elegu = 75,000

Kampala-Bwindi = 80,000

Kampala-Kabale = 45,000

Kampala-Kisoro = 45,000

Kampala-Gulu = 40,000

Kampala-Mbarara = 40,000

Kampala-Rukungiri = 40,000

Kampala-Lira = 40,000

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How to highlight a sustainable competitive advantage

Martin Zwilling

By Martin Zwilling

Don’t bash the competition. Every investor knows how vulnerable a new startup is to competitors, so investors always ask about your sustainable competitive advantage in the marketplace. How an entrepreneur answers this question speaks volumes about their knowledge of business realities, customers, confidence, and their ability to handle investor funding.

There is no perfect answer to the competitive advantage question, but investors are looking for how your offering will keep ahead of competition, not just at this moment, but throughout the life of their three to five-year investment. They are also seeking to find out how you handle one of the many tough questions that a new founder will get in today’s market.

A strong answer should be something like “Our product introduces a new lower-cost technology, which we have patented and trademarked, that makes us very attractive today, and will provide a wealth of additional products as we move forward.” That says you are competitive today, have a real barrier to entry, and the potential to remain ahead of the competition for a long time.

Based on my own experience as an angel investor, and feedback I get from many other investors, here are a collection of answers that we often hear instead, from the least credible to at least reasonable:

  1. Insist you have no competitors. Leading with this answer will likely terminate any further investment opportunity with this investor. He or she will assume your comment means there is no market for your product or service, or you haven’t looked. Neither speaks well for you or your startup. Even if you hedge by saying no direct competitors, we all know that existing cars are still big competition to your new flying automobile.
  2. Claim the first mover advantage. This is one of the most frequent responses I hear, and is rarely convincing. The problem is that startups have limited resources to keep them ahead of big companies. If your early traction highlights an opportunity they have missed, they can mobilize their huge resources and run over you. First mover advantages are only sustainable by large companies, or founders with deep pockets.
  3. Proclaim your solution as a paradigm shift. If you insist that your technology is so new and unique that it will disrupt your competitors and the whole market, investors will fear that neither they nor you can afford the time and marketing required to weather the change. They will likely decline on the basis that historically, pioneers get all the arrows.
  4. Highlight your world-class team as the secret sauce. Insisting that your team is better than any other, giving you a sustainable competitive advantage for the long term, will likely come across as naiveté or arrogance. Investors know that no startup has a lock on the best people and processes, and investors don’t deal with unrealistic founders.
  5. Declare that you will offer the product or service free. Free is a dirty word to investors, since they need a return on their investment. Perhaps you intend to collect money from advertisers, but this requires a large investment to get the audience you need before monetization can work. Facebook spent over $150 million before revenue.
  6. Intellectual property as barrier to entry. I like patents, trademarks, and trade secrets, so this answer is a better sustainable competitive advantage than the other five answers. Now all you have to do is defend your position, and we all know that patents can break a startup in court battles, and will have alternative implementations if the price is right.

Thus, there is no perfect answer to this question, so the best entrepreneurs see it as an opportunity to highlight their own advantages, rather than put down a competitor. Being negative is never the answer. For example, it’s tempting to say that your worst competitor has poor quality products, requiring costly maintenance, but it’s much better to say that you provide a five-year free warranty that no competitor can match.

After highlighting your best competitive features and your intellectual property barriers to entry, I encourage you to put on your humble face, and proclaim your determination to never stop improving your products and processes to out-distance competitors. You want investors to believe that you are a realist, but have the confidence and determination to win.

Investors know that winning in today’s highly competitive environment is more a mindset than a product feature. Competitor bashing is not a skill that you need to hone. I look for entrepreneurs that can sell themselves and their offering to discerning customers. Money from customers and investors is the same color.

The Writer is a veteran startup mentor, executive, blogger, author, tech professional, professor, and investor. Published on Forbes, Entrepreneur, Inc, Huffington Post, etc.

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New report underlines the great potential of renewables as a source of reliable power for refugee settlements

Refugee settlement in Uganda

On-site renewable energy solutions can cost-effectively supply refugee communities with low-cost, reliable electricity, according to the findings of a new report by the International Renewable Energy Agency (IRENA) in cooperation with UNHCR, the UN Refugee Agency. There are currently almost 26 million refugees in the world today. Unreliable energy exposes them to additional and associated risks which renewables can serve to overcome.

Renewables for refugee settlements: Sustainable energy access in humanitarian situations, released at the Global Refugee Forum currently taking place in Geneva, examines the energy needs at refugee camps and identifies renewables-based solutions for four sites in Iraq and Ethiopia. Solar mini-grids in particular, are highlighted as being able to boost the efficiency of humanitarian operations, avoid costly diesel consumption, and support recently arrived refugees with immediate, reliable electricity access.

The report was launched as both organisations agreed in a new Memorandum of Understanding (MoU) to enhance their existing cooperation on promoting renewable energy solutions for the improvement of the humanitarian situation for millions of people displaced from their homes today.

“In line with our Global Strategy for Sustainable Energy, we aim to ensure that refugees can meet their basic energy needs in exile while also minimizing environmental degradation. Sustainable energy access will bridge this gap, enabling refugees to pursue education, supporting businesses and social enterprises, spurring innovation and exponentially enhancing the safety and well-being of people and communities, until such time that they can return home,” said UN High Commissioner for Refugees, Filippo Grandi. “This report and this new partnership between IRENA and UNHCR, is the beginning of an important alliance to mainstream access to energy for refugees and displaced people as well as their local communities, ensuring that they are not left behind.”

“Renewables can quickly and effectively change the lives of refugees for the better,” added IRENA’s Director-General Francesco La Camera. “Off-grid and grid connected small and medium sized solar installations are available, affordable and can bring reliable power to millions of displaced people around the world. We are looking forward to closely work and support UNHCR in its effort to protect life in humanitarian situations. Renewable solutions could become essential to the humanitarian toolkit.”

The study contributes to UNHCR’s Global Strategy for Sustainable Energy 2019-2024 and highlights prime opportunities to strengthen any humanitarian operation which can be replicated in other similar situations.

Findings and recommendations of the new report are based on data collected from field missions to the Darashakran and Domiz camps in Iraq and Tsore and Sherkole in Ethiopia.

It concludes that in Iraq, blackouts and brownouts remain frequent even at grid-connected settlements, leaving refugees and the humanitarian community dependent on expensive, polluting diesel generators.

In Ethiopia, most refugees lack any reliable access to electric lighting. Stand-alone solar systems with battery banks could cushion the impact of voltage fluctuations on the grid. Larger solar parks could provide electricity in and around settlements, as well as creating an enduring asset for host communities.

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Uganda to face Eritrea in 2019 Cecafa Senior Challenge Cup final

fahad bayo in action

Uganda Cranes will face Eritrea in the final of the 2019 CECAFA Senior Challenge Cup at the StarTimes Lugogo Stadium in Kampala on Thursday.

This was confirmed after the two semi-final matches played on Tuesday, 17th December 2019.

Eritrea reached their first-ever final knocking out defending champions Kenya Harambee Stars 4-1.

Oscar Wamalwa (own goal), Abel Solomon Okbay, Michael Habte Gebremesqel and Robel Kidane found the goals for Eritrea while Wamalwa scored the consolation for Kenya.

Uganda progressed to the finals after overcoming Tanzania Taifa Stars 1-0 with the winning goal coming from striker Fahad Bayo four minutes from time.

Kenya and Tanzania, the two losing semi-finalists will now battle for third place before the final.

The two faced off in the group stages with Kenya winning 1-0 during a physical group B contest.

Thursday’s final between Uganda and Eritrea will also be a repeat of the group A contest where Uganda won 2-0.

Uganda Cranes will be eyeing their 15th title since 1926, the founding year of the tournament, arguably the oldest championship on the entire African continent.

2019 CECAFA Challenge Cup Final

Thursday, 19th December 2019

Uganda vs Eritrea

StarTimes Stadium, Lugogo (4pm)

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Uganda secures Shs19b grant from Denmark

Minister Matia Kasaija and Danish Ambassador Nicolaj Hejberg Petersen after singing the agreement

The Minister of Finance, Matia Kasaija has signed a grant agreement worth Shs19 billion with the Government of Denmark represented by the Danish Ambassador to Uganda Nicolaj Hejberg Petersen.

The grant is for supporting Uganda’s public financial management reform programme executed under the resource enhancement and accountability programme (REAP) under the Ministry of Finance.

With this support, Government seeks to consolidate earlier gains and will focus on enhanced resource mobilisation, enhanced policy based planning and budgeting as well as enhanced accountability systems and compliance.

Focus will also be on improving transparency and accountability of local government public financial management systems.

Kasaija lauded the Royal Danish Government for the continued commitment to systems’ strengthening in Uganda.

“I want to assure you that the government of Uganda is fully committed to achieving the goals enshrined in the public financial management reform strategy,” said Kasaija.

He urged his Ministry and all other stakeholders to ensure proper utilization of the grant.

The Danish Ambassador said this support to REAP is part of the bigger Country programme launched in 2018 to also support agriculture, trade, Uganda’s refugee response and private sector development among other areas.

“Denmark recognizes that corruption within the public sector deprives Ugandan citizens of quality services, but also acknowledges the existence of accountability champions and initiatives such as REAP that works towards addressing this vice,” said  Petersen.

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Archbishop Ntagali urges families to stand firm in fight against greed, witchcraft and corruption

Ntagali

The Archbishop of the Church of Uganda The Most Rev Stanley Ntagali has urged parents to stand firm for the families of the nation, salvation and a spirited fight against greed, witchcraft and corruption.

For the last three years, church of Uganda has been focusing on promoting the Family and Children, the back of a living and triumph nation.

In his Christmas message, the Archbishop said families are grappling with domestic violence, marital infidelity, pornography, human trafficking; defilement; pre-marital sex, homosexuality, abortion, illness and untimely deaths from road accidents, poor medical care for women giving birth, and preventable and treatable diseases that still take many lives.

“At Christmas, we need to remember that we are celebrating the birth of a child into a family. Like many of us, Jesus was born into poverty and grew up in a small village. God’s favour was not only on Jesus, but also on his mother, Mary, and his family. Remember the wise men that enriched this family with their treasures? I pray for such favour on our children and on our families today.”

He castigated parents and several adult relatives for being greedy, going to the shrines and engaging in witchcraft that puts children at risk of being sacrificed. And expressed his grievances over UN’s pro-promiscuity, pro-gay, and pro-abortion sexual agenda that are trying to infiltrate Uganda, sneaking through re-writing government policies and through UN-funded NGO’s.

 “We continue to say ‘No’ to Comprehensive Sexuality Education and fully support UJCC’s efforts to intervene on this matter. We also say ‘No’ to efforts to legalize abortion. There is plenty of evidence that demonstrates that legalizing abortion is not a significant factor in reducing maternal mortality, despite the rhetoric we commonly hear. Abortion is just another form of child sacrifice and our government should not legalize it.” He said

He applauded the youths with support from our partners developed an App called ‘Just Good Work’ which is a free interactive mobile app that aims to promote safe migration and prevent human trafficking and exploitation of migrant workers in labour supply chains by providing informed, safe, transparent pathways to work. Just Good Work gives job-seekers and workers critical information on working abroad in simple, jargon- free, home language.

The app provides information and advice on your rights and responsibilities during the recruitment process and at work in your destination country. The app gives workers abroad guidance on accessing help and advice at every stage of their employment, including returning home. It provides insights into life and work in specific countries, on topics such as the weather, local customs and leisure activities.

The goal of the app is to make sure Ugandans have access to safe and decent work that enhances the quality of their lives and is free from exploitation. That they have the information they need to make safe decisions about taking work abroad.

“I send warm Christmas greetings to His Excellency, President Yoweri Kaguta Museveni, Mama Janet Museveni and their entire family. To all our government and civic leaders, all the Bishops and their wives, the Clergy, Lay Readers and all Christians of the Church of Uganda. I also send my sincere greetings, along with prayers for a blessed Christmas to our Roman Catholic, Orthodox and Pentecostal brethren, and all those who have looked in hope to the Child who has been born and the Son who has been given, Jesus the Christ.”

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Subscribers to stay longer on internet as MTN announces unlimited data bundles

Unlimited data bundles will help subscriber stay on the internet for longer hours

MTN Uganda has decided to make its data bundles unlimited for its subscribers. The chief executive officer (CEO) Wim Vanhelleputte on Tuesday announced the ‘freedom data bundles’ saying they never expire as had been the case in the past.

Vanhelleputte announced the launch of the unlimited bundles during the inaugural annual information and technology (ICT) Expo at Nakawa and encouraged MTN subscribers to embrace the service.

“I take this opportunity to announce the long awaited MTN Freedom bundles. You can now get data bundles that never expire. Simply dial *150*7# to enjoy the freedom,” he said, adding that it has been the concern of subscribers in Uganda as well as Nigeria and Ghana where they have sister companies.

He said MTN subscribers would surf the internet till their data bundles are used up. At first all bundles would expires after 24 hours even if one had not used it from the time of subscribing.

The bundles have been welcomed by many MTN subscribers saying, it is the best Christmas present this year. “2020 blessings have been bestowed on us this early courtesy of MTN” One Muya Chris wrote on twitter.

The outgoing ICT minister Frank Tumwebaze, thanked MTN for the initiative, saying that it would boost ICT uptake in the country.

Despite the good gesture from telecom companies to make data cheap, subscriber still believe social media tax levied per day is a hindrance to the enjoyment of the internet.  The Social Media tax requires users to pay a tax of Shs20 per day to access over-the-top (OTT) services

Recently the company introduced voice bundles that can call across all networks. Despite all the incentives, MTN subscribers have decried the depletion rate of data bundles and called for reduction of prices for people to embrace internet services.

However, analysts say MTN is using the freedom bundles as one of the strategies for government to renew its licences at favourable conditions.

Among others, Government wants MTN Uganda to register on the Uganda Securities Exchange so that Ugandans can buy shares in the company whose parent company MTN Group is domiciled in South Africa.

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Confirmed: Danish company to acquire 9.97% CDC shares in dfcu bank

Dfcu head office

Eagle Online yesterday published an article saying that UK’s Commonwealth Development Corporation (CDC) Group had identified the buyer for its 9.97 per cent shares in Dfcu bank. That buyer has now been revealed as IFU- Denmark, the Danish Development Finance Institution/ Investment Fund for Developing Countries.

Yesterday dfcu published a cautionary announcement dated December 13, 2019 informing its shareholders and potential investors of the transaction now awaiting the approval of authorities in the financial sector, particularly the Capital Markets Authority which regulates the Uganda Securities Exchange on which Dfcu is listed .

“Dfcu limited…advises its shareholders and the general public that a significant minority shareholder has received and accepted an expression of interest for the purchase of its shareholding in the Company by another,” Dfcu said in a recent cautionary announcement,” Dfcu said in the statement.

But the transaction, according to the announcement, remains subject to obtainment of regulatory approvals and satisfaction of all conditions precedent.

Due to expected sell of shares by the unnamed minority shareholder, the company has therefore advised shareholders and potential investors to be cautions when transacting in the company’s shares. “Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares until a further announcement is made,” the announcement reads in part.

Eagle Online last year reported that UK’s Commonwealth Development Corporation (CDC) Group was looking for another offshore company to buy its shares in Dfcu. The company owns 9.97 per cent. CDC’s Investment Director Irina Grigorenko wrote a confidential letter to Dfcu Chairman Elly Karuhanga of CDC Group’s intention to sell some or all of its shares.

Grigorenko, said then that CDC Group was “undertaking a review of its investment in Dfcu Limited which may lead to the disposal or some of some or all of its shares in Dfcu over the short to medium term.”

In its letter, CDC also expressed hope that Dfcu would continue to “succeed with the support of Arise B.V., its major shareholder.” CDC’s investment in Dfcu, according to the institution’s official website, is $15.1m (equity) and $10m (subordinated loan).

About nine institutional investors own Dfcu, with Arise BV holding the largest shareholding at 59 per cent. CDC is in second position, followed by National Social Security Fund (NSSF). Months ago, Arise BV Executive Director Deepak Malik resigned from the Dfcu bank’s board of directors.

When asked, analysts said it is normal for shareholders to sell their shares within or get buyers from outside when they think it is the right time to exit. However, he hastened to add that some shareholders exit when they anticipate that the company’s business in future might not be profitable at the level they want it.

However, the latest announcement that a significant minority shareholder has got the buyer of its shares comes at the time when dfcu is facing challenges following the controversial acquisition of Crane Bank Limited (CBL) in January 2017. Dfcu is the holding company of Dfcu bank which bought CBL as offered to it by the Bank of Uganda (BoU).

Recently Dfcu bank realised that it could not take up freehold properties of Meera Investments Limited which had been leased to defunct CBL. Dfcu now wants BoU to compensate it for the loss of the properties it values at Shs47 billion even though it is understood it valued the same properties at Sh10 billion when it took over CBL an estimated Shs200 billion.

About IFU

Rune Norgaard, IFU’s Communication Director, says the institution, an independent government agency provides risk capital and advice to companies wishing to set up business in Africa, Asia, Latin America and parts of Europe. Investments are made on commercial terms in the form of equity and loans. The purpose is to contribute to economic and social development in the investment countries.

IFU and IFU managed funds have co-invested in close to 1300 companies in 100 countries in Africa, Asia, Latin America and parts of Europe.

Key shareholders in Dfcu

DFCU Shareholding percentages

Arise BV 58.71 per cent

CDC Group of the United Kingdom 9.97 per cent

National Social Security Fund (Uganda) 7.69 per cent

Kimberlite Frontier Africa Naster Fund 6.15 per cent

undisclosed Institutional Investors 3.22 per cent

SSB-Conrad N. Hilton Foundation 0.98 per cent

Vanderbilt University 0.87 per cent

Blakeney Management 0.63 per cent

Retail investors 11.19 per cent

BoU staff retirement benefit scheme is 0.59 per cent

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Boeing to halt production of 737 MAX planes

Boeing

Boeing will suspend the production of 737 MAX planes beginning January 2020. The suspension follows the grounding of Boeing 737 MAX passenger airliner after two new airplanes belonging to Lion Air and Ethiopian Airlines crashed within five months, killing all 346 people aboard.

According to a statement released by Boeing, they are in the process of approving the 737 MAX’s return to service and determining appropriate training requirements, extraordinarily thorough and robust, to ensure that our regulators, customers, and the flying public have confidence in the 737 MAX updates.

Recently Boeing announced a $50 million compensation fund for the families of people killed in Boeing 737 Max plane crashes. The Fund officials in September said that they have started accepting applications, with a deadline of December 31 for submitting claims. Administrators of the fund include Kenneth Feinberg, who oversaw compensation for victims of the September 11, 2001, terror attacks.

“As we have previously said, the FAA and global regulatory authorities determine the timeline for certification and return to service. We remain fully committed to supporting this process. It is our duty to ensure that every requirement is fulfilled, and every question from our regulators answered.” Reads in part of the statement.

Throughout the grounding of the 737 MAX, Boeing has continued to build new airplanes and there are now approximately 400 airplanes in storage.

“We would continually evaluate our production plans should the MAX grounding continue longer than we expected. As a result of this ongoing evaluation, we have decided to prioritize the delivery of stored aircraft and temporarily suspend production on the 737 program beginning next month.” Reads in part of the statement.

The company stated that the suspension is least disruptive to maintaining long-term production system and supply chain health.  This decision is driven by a number of factors, including the extension of certification into 2020, the uncertainty about the timing and conditions of return to service and global training approvals, and the importance of ensuring that we can prioritize the delivery of stored aircraft.

“During this time, it is our plan that affected employees will continue 737-related work, or be temporarily assigned to other teams in Puget Sound. As we have throughout the 737 MAX grounding, we will keep our customers, employees, and supply chain top of mind as we continue to assess appropriate actions. This will include efforts to sustain the gains in production system and supply chain quality and health made over the last many months.”

They pledged to provide financial information regarding the production suspension in connection with our 4Q19 earnings release in late January.

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Court asks gov’t to pay over Shs300m for land probe mess on private property

Lady Justice Catherine Bamugemereire whose parts of the report was quashed.

The government  has been asked to pay Shs310 million as punitive damages, Shs5 million to each of the 62 applicants who challenged the Attorney General  in court over Justice Catherine Bamugemereire’s land commission interference with private land code named block 127, plot 49.

The applicants led by a one Francis Namara sued the Attorney General after the Commission stopped all activities on the said plot, even though the court had pronounced itself on the matter.

Court ruled that the actions of the Commission were illegal, wanton and committed with impunity and in utter disregard of the law and that it abused the established legal process.

Justice Bashaija K. Andrew who wrote the ruling also said the money awarded attracts 8 percent interest per annum from the date of the ruling on the matter, which is December 13, 2019.

He also awarded the applicants costs of the application.

The Commission of Inquiry into Land Matters wound up its work on November 9 after a 30-month tenure. The Commission has been investigating the effectiveness of the law, policies and processes of land acquisition, management and registration in the country since it was set up by President Museveni on December 8, 2016.

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