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Umeme’s gross profit jump 11% in 2018

By
George Mangula
-
Patrick Bitature

The year 2018 was good business for national electricity distributor, UMEME as its gross profit grew 11 percent to Shs581 billion from Shs525 billion realised in 2017, according to financials in annual report 2018 which was released during the shareholders annual general meeting held in Kampala on Thursday.

According to the financial statement, the 11 per cent rise gross profit in 2018 was on account of revenue growth and improved margins underpinned by capital investments allowed for recovery in the tariff and improved operational efficiencies.

The profit increased as the company’s net revenue jumped to about Shs1, 493 billion in 2018 from Shs1, 485 billion. The rise in revenue came as electricity sales increased by 13 per cent to Shs1.6 trillion in 2018 from Shs1.4 trillion in 2017.

The revenue increased as units of electricity sold in Gigawatt hours (GWh) rose by 9.1 per cent to 3,011 GWh in 2018 from 2,760 GWh in 2017, boosted by improved supply, increased industrial demand and reduction in energy losses which stand at 16.6 per cent from 17. 2 per cent in 2017.

Umeme board Chairman Patrick Bitature while addressing shareholders in Kampala said the customers connected to the grid have increased fourfold to 1.3 million at the end of 2018 from 290,000 as of 2005 when the company signed 20-year concession with government to distribute electricity in the country. Prepaid metering has been rolled to 950, 000 of the customers, contributing 24 percent to the company’s revenue.

Bitature said there has been improvement in revenue collections with the five-year collection averaging 99 per cent as of 2018 from 80 per cent at the start of the concession.

“Umeme has been innovative, implementing technologies like pre-paid metering and network automation to improve our service experience,” Bitature said as he also introduced new members on his board that embodies national and foreign faces mingled to attract international financing but also push the company forward.

“…I am pleased to note the willingness of government to engage with the company and agree on terms of an extended concession,” Bitature told journalists when asked to brief them on the latest about the negotiations at hand.

Investment in the distribution network

The financial statement shows that during the year ending 2018, UMEME invested Shs231 billion in the distribution network, leading to the cumulative investment of Shs2.3 trillion over the last 14 years. “We recognise the urgency of additional investments required in the network on account of increased generation capacity and the implementation of the mile connections programme,” Bitature said.

Umeme has also been able to double the size of the distribution network to 33.146km of distribution lines and over 12,500 transformers at the end of 2018. He said this has made the electricity distribution network to be more safe, reliable and efficient.

Extension of the concession beyond 2025

Both Bitature and Umeme Managing Director Celestino Babungi reported that there good signs that government could extend the concession beyond 2025 when the current one ends. They said the company would unlock funding opportunities for long term capital to finance projected investments worth US $450 million for the next six years.

As part of future plans the two Umeme gurus said the company was looking at investing in concrete poles which last for 40-50 years as the company progressively does away with wooden poles which have various disadvantages of rotting as well as burning during bushfires.

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Bright Stars eliminate Express to set up Uganda Cup final with Proline

By
Our Reporter
-
Uganda cup trophy

Bright Stars FC have progressed to the 2019 Stanbic Uganda Cup final after eliminating Express FC in the second semifinal played on Thursday afternoon at Wankulukuku stadium.

Express took an early lead through John Revita who scored a free kick after 4 minutes while second-half substitute James Angu leveled it for the visitors 9 minutes from time forcing the game into penalties after a 2-2 aggregate score.

Nelson Senkatuka, Rajab Kakooza and Farouk Katongole scored for Bright Stars while Angu and Walusimbi missed theirs.

Disan Galiwango and John Revita scored their penalties while Davis Mayanja, Michale Birungi and Sadiq Ssekyembe missed for the Red Eagles.

Bright stars progressed to the final after emerging victorious with 3-2 on penalties.

Both teams will be in search of their first-ever Uganda Cup trophy.

The 2019 Uganda Cup final will be played on May 25th at the Masaka Recreational Stadium.

The winning club of the Uganda Cup will walk away with Shs40 million, runners up Shs20 million, semi-finalists Shs10 million while the quarter finalists walked away with Shs5 million.

The winner of the competition represents Uganda in the Caf Confederation Cup as per the rules of the competition. KCCA FC are the defending champions.

Express FC and KCCA FC are the teams that have won the Uganda Cup most, with ten times each.

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IMF commends Uganda’s macroeconomic performance and development gains over the last three decades

By
Agencies
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IMF Mission Chief for Uganda Axel Schimmelpfennig

International monastery fund (IMF) has commended Uganda’s macroeconomic performance and development gains over the last three decades, including halving its poverty rate.

This was during IMF Executive Board discussion of 2019 Article IV Consultation with Uganda, where they said the country’s economy continues its recovery.

Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visited Uganda and collected economic and financial information, and discusses with officials in the country’s economic developments and policies. On return to headquarters, the staff prepared a report, which formed the basis for discussion by the Executive Board.

Bank Directors encouraged further progress towards poverty reduction and shared prosperity, through strong macroeconomic policies, human capital development, and improvements in institutions and governance with continued IMF capacity development support.

Directors welcomed the authorities’ intention to develop a fiscal rule to manage future oil revenues and encouraged the authorities to consider adopting an interim debt ceiling to guide fiscal policy. Directors also stressed the need to improve fiscal policy formulation and implementation including through a more binding approach to the annual budget process and encouraged the authorities to promptly adopt and implement the Domestic Revenue Mobilization Strategy given Uganda’s still low revenue collection.

Directors noted that a more balanced expenditure composition between infrastructure and social development (especially for the youth, women and low‑skilled workers) would better support inclusive growth and highlighted the need for spending prioritization, addressing domestic arrears and continued efforts to strengthen public finance and investment management practices.

While Uganda’s debt level remains at low risk of debt distress, Directors cautioned that debt metrics had weakened, some investment projects may not generate the envisaged return, and interest payments are rising. Directors thus called on the authorities to keep debt below 50 percent of GDP in nominal terms over the medium term to safeguard the hard‑earned favorable debt sustainability rating.

Directors agreed that inflation targeting continues to serve Uganda well under the central bank’s stewardship. They indicated that monetary policy could remain supportive for now and agreed on building reserves opportunistically under a flexible exchange rate regime given external vulnerabilities. Directors also urged the authorities to strengthen the Bank of Uganda’s financial position through recapitalization and expenditure measures.

Directors concurred that bank supervision and regulation are generally sound and noted the importance of a more favorable business environment and greater access to finance for a private sector‑led growth.

Finally, Directors welcomed the improvements in Uganda’s compliance with the AML/CFT standards and its decision to begin accession to the Extractive Industries Transparency Initiative. They called for further efforts to strengthen governance and reduce corruption, including addressing weak implementation of the relevant legal framework.

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Victoria University VC releases book on Physiotherapy and Occupational Therapy

By
Our Reporter
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Prof. Krishna N. Sharma releasing his book.

Assoc. Prof. Krishna N. Sharma, who recently bagged the record of Youngest Vice-Chancellor of Victoria university Kampala-Uganda has just released his latest paperback book Advanced Techniques in Physiotherapy and Occupational Therapy (ISBN 9789388958509).

Prof. Sharma said that this 246 paged book is for physiotherapy and occupational therapy students and professionals. The book is designed after considering undergraduate and postgraduate PT/OT curricula of several international Universities.

the Uganda Physiotherapy Association said, “They are happy and proud that the Vice Chancellor of Victoria University has taken lead and written this book that will guide Granduands in the physiotherapy and occupational therapy field.”

The book encompasses of 32 advance orthopedic/manual therapy, neurological, vestibular and cardiopulmonary physiotherapy and occupational therapy techniques. The content is in-depth but precise and concise, written in simple English that makes almost all the chapters 15 minutes read. The book is enhanced with easy-to-comprehend figures, flowcharts, and photographs.

This book is published by Jaypee Brothers Medical Publishers (P) Ltd., New Delhi, India; a 50 years old leading medical publication with 3,500 titles in its list and 350 new products added each year. Jaypee has a network of more than 1100 booksellers in India.

Jaypee products are being distributed globally by renowned distributors in the USA, Central and South America, UK, Canada, Europe, Africa, Middle East, South East Asia, North Asia and in the Australia/Pacific Region.

The book preview is available on https://books.google.co.ug/books?id=V3KSDwAAQBAJ and the paperback copy can be bought on publication’s official website- www.jaypeebrothers.com and several other bookstores and e-commerce sites. The book can be made available in Ugandan book stores based on demand.

It is notable that this youngest Vice-Chancellor is also a renowned academician and prolific author. He has written several books on medical and health sciences, music and literature and a few of them were listed in the bestsellers list on amazon.com.

Apart from academic management, he is also active in the field of pain management.After years of his experience and supervising more than 60 researches, he developed his own therapeutic manual therapy techniques- Krishna’s Kinetikinetic Manual Therapy (KKMT) which is being taught and practiced in several countries.

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Former Buganda minister Arthur Bagunywa passes on

By
Geoffery Serugo
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Late Arthur Bagunywa appearing on NBS TV, one of his last appearances. Photo Credit, NBS TV.

The former minister in Buganda kingdom, Arthur Bagunywa Nkalubo has passed on at Platinum Hospital along Buganda Road.

Nkalubo died this morning at around 10:00 and is expected to be laid to rest at his ancestral home in Singo County Mityana district.

Bagunywa served Buganda kingdom in many ministerial capacities and these include that of Education, Local Government among other positions.

The veteran politician, monarchist and educationist was the father to former Buganda Kingdom Cabinet Minister for Youth and Employment Florence Bagunywa Nkalubo.

According to information obtained from one of the family members, the deceased will be taken to his Rubaga home next to Red Cross Headquarters where there will be a requiem mass.

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2019 Champions League final: Tottenham Hotspur vs Liverpool

By
Agencies
-
UCL final

The teams to contest for the 2019 UEFA Champions League glory have been confirmed, and it is an all-English final.

Liverpool booked their place with a famous comeback against Barcelona on Tuesday, and Tottenham did likewise on Wednesday, recovering from a home first-leg defeat and a 2-0 second-leg deficit to win 3-2 at Ajax and progress on away goals.

It will be the first all-English Champions League final since 2008, when Manchester United defeated Chelsea 6-5 on penalties at the Luzhniki Stadium in Moscow, Russia.

The Estadio Metropolitano in the Spanish capital Madrid will stage this year’s fixture. The home of Atlético Madrid, the venue was officially opened in September 2017, replacing the club’s former home, the Estadio Vicente Calderón.

The UEFA Champions League final is the first major European decider to be played at the arena. The final was most recently held at the Santiago Bernabéu, home to Real Madrid, in 2010.

The referee for the final will be announced in the weeks leading up to the game.

Tottenham are the nominal home team as a result of a draw made for administrative purposes following March’s draws for the final stages of the competition.

Tottenham route to the final

Qualified: 3rd in Premier League

Group B runners-up

Round of 16: 4-0 agg v Dortmund

Quarter-finals: 4-4 agg v Manchester City (won on away goals)

Semi-finals: 3-3 agg v Ajax (won on away goals)

Liverpool route to the final

Qualified: 4th in Premier League

Group C runners-up

Round of 16: 3-1 agg v Bayern

Quarter-finals: 6-1 agg v Porto

Semi-finals: 4-3 agg v Barcelona

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Crisis as ULS calls meeting on arbitration and mediation centre in Kampala

By
Our Reporter
-
Lawyer Timothy Masembe Kanyerezi

The Uganda Law Society (ULS) has called for crisis meeting to handle issues regarding the legality of the arbitration and mediation centre which was launched recently but allegedly operating without the consent of its members.

Some disgruntled lawyers have accused ULS executive and Uganda Bankers Association (UBA) for establishing the International Centre for Arbitration and Mediation in Kampala (ICAMEK) to help protect and assist the public most especially in commercial matters or disputes.

ULS is one of the subscribers to ICAMEK whose directors are John Fisher Kanyemibwa and former ULS President Francis Gimara, with law firm, MMKAS Advocates as the company secretary.

According to USL President Simon Peter Kinobe, the members’ extra ordinary meeting has been set for May 22, 2019 and is aimed at reaching a consensus on the issue.

“It is unfortunate that instead of seeking clarification and without citing relevant provisions of the law, one of our members took to social media to smutch the good reputation of our society,” he said.

Nelson Walusimbi, one of the complainants said that ICAMEK was established without authorization by the members and that the idea has never been presented to ULS Annual General Meeting.

Kinobe however said the accusation is misplaced because the issue of ICAMEK was discussed in the recent Annual General Assembly in Entebbe where all members were present and that no objection was raised by any member.

He says ULS executive, using ULS Act as provided incorporated ICAMEK as a company limited by guarantee for the sole purpose arbitration. He said the beneficiaries would be clients and young lawyers that will participate in the arbitral process as both arbitrators and consultants.

He urged ULS members to support any initiative that would encourage the growth of young lawyers and development of alternative avenues of business.

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FUFA to host three high profile UEFA Officials

By
Our Reporter
-
Head of International Relations football operations UEFA - Eva Pasquier

The Federation of Uganda Football Associations (FUFA) will host three top UEFA officials from 8th to 13th May 2019.

The visiting officials are UEFA Head of International Relations football operations specialist Eva Pasquier and two Consultants Stewart Reagan-former CEO of the Scottish Football Association and Ken MacLeod.

The football officials are coming under an international programme called UEFA ASSIST that addresses the needs of national associations and confederations outside Europe with the aim of increasing solidarity and enhance football development and knowledge sharing.

With FUFA keeping track on its 5 year strategic plan based on the 8 key focus areas, the visit comes at an opportune moment when football knowledge, ideas and guidance will be shared about Ugandan football learning on best practices how the beautiful game is administered in Europe.

It will be the first time for any African country to host the UEFA ASSIST official and also benefit from the programme.

During their visit, the football oficials will hold meetings with the FUFA President, Government, Executive Committee Members, FUFA CEO, Secretariat staff, Clubs, Uganda Cranes coach, fans, sponsors and media.

“We hope to benefit a lot from the visit of UEFA officials as we expect to learn more on modern governance principles especially when they meet the various key stakeholders in the game. The same knowledge will be shared by the people who are the nucleus of the game in the 8 football regions” said FUFA CEO Edgar Watson.

FUFA’s focus areas are; Governance, Development, Infrastructure, National teams, Competitions, Marketing and Communications, Finance and Administration, Membership.

About UEFA ASSIST:

UEFA ASSIST, is an international programme that addresses the needs of national associations and confederations outside Europe with the aim of increasing solidarity and enhance football development and knowledge sharing.

The main scope of UEFA ASSIST is essentially to share knowledge and best practices to help UEFA’s sister confederations to develop and strengthen football within their respective territories. UEFA ASSIST is designed to provide practical rather than financial assistance and to offer support through development activities. – Story and information provided by the Fufa website (fufa.co.ug)

UEFA ASSIST is composed of four pillars, each providing specific support to member associations and confederations worldwide:

Education and knowledge sharing

Development of youth football

Support of infrastructure projects

UEFA national association support programmes

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Five key drivers for creating a board for your startup

By
Guest Writer
-
Martin Zwilling

By Martin Zwilling

Many entrepreneurs I know are confused by definition and need for an Advisory Board versus a Board of Directors. Some view both of these as a waste of time and burden on the CEO, while other founders surround themselves with insiders and cronies in an attempt to expedite and add credibility to their own interests. I suggest a few simple considerations will clarify the alternatives.

By definition, Advisory Boards are voluntary and have no fiduciary responsibility. Yet I suggest a small one has value for every startup, starting at inception, prior to a major investor or key business scaling initiative. This Advisory Board is a good test drive for the more formal Board of Directors required later, when going public (IPO) or the entrance of venture capital investors.

In all cases, board members should be selected individually for their ability to independently add value to the expertise and experience of the management team, with no obligation or intent to add weight to internal views. The details of these considerations are outlined in a classic book, “The Board Book,” by Board expert and founder of The Board Institute, Susan F. Shultz.

Shultz provides a set of considerations that I recommend to every entrepreneur for deciding when and how to create the board that has the most value to a specific CEO and a specific business. These considerations include the following:

Are you looking for advice or a boss? Most founders and CEOs will not voluntarily establish a formal Board of Directors, unless they are trying to attract a major investor, preparing for an IPO, or planning for an acquisition. As an alternative, every CEO needs an Advisory Board to help them grow, which they can ignore or fire at their pleasure.

How much are you willing to spend on your board? Advisory Board members often serve for a nominal retainer, or one percent of the equity, whereas Directors for even a small company would expect at least a five-digit retainer, plus meeting expenses. Also expect that much more of your time will be required to sustain a Board of Directors.

What role do you want in selecting board members? Board of Directors members must be formally elected by stockholder votes for a stated term. Obviously, a CEO can recommend directors, but CEOs directly select Advisors, and they are replaced as interests and needs change. Legally, Directors are accountable for corporate conduct.

Do you expect involvement in company operations? Advisory Board members rarely get involved in operational roles versus strategic issues, while specific Directors often spend much time on executive compensation, processes to satisfy regulatory requirements, and reviews of budgets, acquisition proposals, and major policy changes.

How many board members need you work with? A Board of Directors must represent all constituents, so it often grows to ten or even twenty members, although I recommend keeping the numbers uneven (to eliminate tie votes), and less than ten. For Advisory Boards, I recommend three to five as max, to limit costs and time spent for support.

The challenge is to avoid the mistakes that can compromise any Board, advisory or formal, in its independence or effectiveness to the business. Shultz discusses many of these, but here are a few which are the most common in my experience:

Failure to focus strategically rather than tactically. Most stockholders think only about the next quarter, and most CEOs worry about short-term survival. Since Boards are a function of both of these, it’s hard to find boards able and willing to keep a proactive focus on strategy. They tell you what you need to hear, not what you want to hear.

Too many beholding insiders, friends, and family. Insiders will tell you what you want to hear. Their allegiance, sensitivity to rank, and familial biases make open discussions difficult, and interlocking directorships set up too many situations where directors work for favors from each other, or work against each other due to non-business issues.

Lack of involvement and leadership by the CEO. Even with all the right people on the Board, it’s still the CEO who sets the culture, drives the focus, and makes the difference. The best CEOs balance the focus between strategy and selected current issues. They stay in touch, transparently provide info, and make Board recommendations happen.

Thus, it is my view that every entrepreneur and every business needs at least a couple of outside advisors, if not a formal Board of Directors. As an angel investor, I judge readiness for investment by their presence or absence, by the CEO’s relationship with them, and by the quality of the advisors. It’s a resource that you can’t afford to ignore if you intend to stay competitive today.

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

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Food, beverage companies commit to WHO trans fat elimination goal

By
Our Reporter
-
Beverages

The World Health Organisation (WHO) has welcomed the commitment by the International Food and Beverage Alliance (IFBA) to align with the WHO target to eliminate industrially produced trans fat from the global food supply by 2023.

WHO Director-General Dr Tedros Adhanom Ghebreyesus recently met with IFBA representatives, including chief executive officers from several of the 12 companies comprising the alliance to discuss actions to take to eliminate industrial trans fats, and reduce salt, sugar and saturated fats in processed foods.

The meeting also stressed the value of regulatory action on labelling, marketing and called industry to full adherence to the WHO Code of marketing of Breast Milk Substitutes.

“The commitment made by IFBA is in line with WHO’s target to eliminate industrial trans fat from the global food supply by 2023,” Dr Tedros said. “WHO will be monitoring the next steps to be taken by companies to help ensure the commitment is realized.”

Of particular note was the decision to by IFBA members to ensure that the amount of industrial trans fat (iTFA) in their products does not exceed 2 g of iTFA per 100 g fat/oil globally by 2023. This is in line with the WHO’s objective and recommendations of its REPLACE action package, which was developed and launched in 2018.

“Eliminating industrially-produced trans fat is one of the simplest and most effective ways to save lives and create a healthier food supply,” added Dr Tedros.

In line with the REPLACE initiative, WHO has called on all food producers and oil and fat manufacturers, not only IFBA members, to commit to elimination of industrial trans fat from the global food supply.

Trans fat intake is responsible for over 500,000 deaths from coronary heart disease each year globally.

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