The Central Bank of Uganda (BoU) has warned the public against investment in pyramid schemes; shortly a week after several Ugandans suffered the latest Capital Chicken downfall.

The Central Bank in an advisory notice issued on Wednesday, October 04, 2023, outlined various ways in which one may detect a pyramid scheme.

“A good general rule to follow is; if it sounds too good to be true, then it is false, ” BOU said, adding that a pyramid scheme also promises consistent returns regardless of the market conditions and yet legitimate business experiences moments of profit and moments of loss.

According to the BoU statement, a pyramid scheme occurs when the company of the proprietor values attracting people to make investments more than any other thing.

“Without a constant flow of new investments to continue to provide returns to the scheme owners and older investors, the scheme falls apart,” the central Bank noted.

In such schemes, BoU says both old and new clients find challenges trying to access their money from the scheme because the money has already been spent on the proprietor or other investors.

“If a business idea cannot be explained, it is suspicious,” the country’s treasury body warned, explaining that pyramid schemes have a complex business strategy that investors are not able to understand.

The Bank of Uganda’s caution comes at a time when a recent alleged pyramid scheme by Capital Kitchen has been publicized on social media.

The company (now closed) fleeced Ugandans of billions of shillings in a non-existent investment scheme which targeted mostly the corporate class who wanted to invest in the chicken-rearing business but didn’t want to directly get involved in the business.

The Capital Markets Authority (CMA) recently noted with “great concern, an increase in the number of incidents relating to fraudulent operators and unlicensed financial schemes across the country.”

The regulator warned that “such incidents include individuals or firms holding out as investment advisers and fund managers, as well as pyramid schemes operating physically and through online platforms, which seek to take cash deposits from unsuspecting members of the public with a promise of exceptional investment returns.”

“We strongly warn the general public to avoid seeking investment advice or dealing with any unlicensed persons. Those who chose to do so at their own risk,” CMA emphasised.

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As more players enter the cryptocurrency market, mining becomes more complex and requires more computing power. As a result, many people who previously used their own equipment for cryptocurrency mining now find it unsustainable: high electricity bills and wear and tear on the equipment. Therefore, cloud mining is becoming an increasingly attractive option.

In the partner material, we go into more detail about its features and how it will help increase passive income.

What is cloud mining

Cloud mining is a mechanism that uses leased cloud computing power to mine cryptocurrencies such as Bitcoin. Hardware setup and startup, no software installation required.

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How to start cloud mining

Here are the basic steps you need to take before getting started.

Step 1: Choose a Cloud Mining Provider

CGMD Miner is a popular and powerful cryptocurrency mining platform and an excellent resource for passive income. CGMD Miner is a free Bitcoin mining program that allows you to passively earn Bitcoins without any strings attached, regardless of technical knowledge or financial resources. Once $12 worth of Bitcoins are mined, they can be transferred to your account and traded. Any profits are yours and you can withdraw them to your personal wallet.

Platform advantages:

Get $10 immediately after registration;

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Other currencies can be generated;

The company’s Partner Program allows you to invite friends and earn up to $3,000 in referral bonuses;

McAfee security? Cloudflare® security protection;

24/7 technical support.

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Go to the provider of your choice and sign up to create a new account.

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Step 4: Earn passive income

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CGMD Partner Program

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For more information about CGMD mining machines, please visit the official website https://365miner.com/

CGMD miner can enter “CGMD” in the Google App Store or Apple Store to download the application.

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The management of Capital Chicken Limited has temporarily closed its operations after the Financial Intelligence Authority (FIA) froze their accounts but has, however, assured safety of the customer funds. 

In a statement issued on Tuesday, 03 October 2023, Capital Chicken said this was after the Capital Markets Authority discredited their operations.

“We have been forced to temporarily close following a Capital Markets Authority news release discrediting us about two weeks ago and the subsequent freeze of our Accounts by the FIA that has made it impossible for us to run normal operations,” they said.

“We call upon our farming partners to be calm as we navigate the turbulence created by the various agencies who should have instead engaged us on Regulatory issues if indeed, the intention was to streamline our operations,” they added.

This comes after news started making rounds on social media about Capital Chicken closing and running away with people’s investments.

“Our attention has been drawn to various social media platform messages indicating that we have closed and disappeared with our farmers’ money,” they said.

“All our client contracts are protected, we ask all our farming partners to stay calm as we look forward to resume operations.  Like a Phoenix, Capital Chicken shall rise, again,” they added.

In the Eagle Online story dated September 18, 2023, the Capital Markets Authority (CMA) clarified that Capital Chicken Limited, the Mall Fund Limited and Veta Plan Chicken had not sought the approval of the Authority to offer investment contracts to the general public.

According to CMA, it had been receiving various inquiries seeking guidance on the widely publicized ‘investment opportunities’ by the three entities purporting to offer investment contracts to members of the general public.

The Capital Chicken investment scheme targeted mostly corporates who wanted to invest in chicken business but didn’t want to directly get involved in the business.

The company welcomed investments between Shs1 million to infinity for individuals whereas there was also an allowance of investing as a group by pooling resources where at the end of every month one would get profits amounting to 15% of their total investment.

But CMA warned that in the absence of regulatory oversight, investors in unregulated investment activities have limited recourse in the event of unfair treatment, loss or other challenges faced in their investment journey.

“Accordingly, members of the public are urged to participate in investment opportunities approved or regulated by CMA or any other relevant regulator and are further urged to seek investment advice from licensed investment advisors or other legitimate professional in order to make sound investment decisions and avoid being a victim of investment fraud,” the company said.

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Government of Uganda in partnership with Huawei has launched a digital hub for the Teso sub region in Eastern Uganda.

The hub seeks to provide youth, women, elderly, jua-kali, enterprise owners, students and farmers with knowledge and skills in digital technology to enhance their capabilities to produce and market their products worldwide.

The program code-named Huawei Digi-truck project was launched early this year by President Yoweri Museveni to provide free digital skills training for more than 10,000 beneficiaries over a period of three years.

While launching the project, the vice president said the program will create sustainable livelihood opportunities for the informal sector as it will enable small business owners to participate in regional and national trade.

“Digital transformation is one of the key drivers of effective human capital development, it therefore gives me much pleasure to launch this project,” she said.

The program is to be implemented in a phased way starting with Katakwi, Amuria and Kaperabyong district. Later the program will traverse in the remaining districts which make up the Teso sub-region. She lauded Huawei for demystifying ICT by making it all inclusive to farmers, youths, women, young girls and boys, elderly etc.

The vice president called upon the youth to be very generous with the skills acquired to achieve a multiplier effect. She urged youth to maintain discipline during the course and asked Huawei to establish an ICT resource centre in Katakwi to promote continuity and sustainability of the program. She also asked Huawei to equip parish chiefs with computer knowledge and skills for the success of PDM.

Alupo noted that the Government considers Huawei as a very strategic and important partner in the transformation of Uganda. We also acknowledge with appreciation to Huawei for building smart infrastructure here, such as aiding education through ICT,” she said.

Running in partnership with the Ministry of Labour, Gender and Social Development and an international social enterprise, Close the Gap, the Uganda DigiTruck project is aligned with Uganda’s 2040 vision, National Development Plan, and Education Digital Agenda Strategy.

Katakwi district RDC Maj. Godfrey Katamba stressed that the focus of these initiatives includes promoting digital foundation skills, digital communications and information, digital transactions, using the internet for problem-solving, online safety, civic responsibility, and data privacy, which will promote digitalization of the informal sector (Jua-Kali) enterprises for productivity and job growth in the country.

The DigiTruck program is coordinated with development and training partners globally to close the access and knowledge gap in digital literacy so that no one is left behind.”

Converted from a used shipping container, DigiTrucks are mobile classrooms mounted on trucks.

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