Youth unemployment rate continues to soar
For Mr Lubowa Musoke, a metal workshop entrepreneur in Rubaga, Kampala, attaining vocational skills is but not good enough, especially to the young people who do not have capital to start their own enterprises.
He thus advises the government to increase its funding to vocational income generating projects if the problem of unemployment is to be reduced. “Since there are fewer government jobs, it is important that people seek self-employment but this is hindered by lack of start-up capital,” he says.
According to Mr Musoke, the government should ensure that the young entrepreneurs are availed with capital in form of soft loans or better yet, exempt small scale industries from paying tax.
Projects such as carpentry, and metal welding can be rewarding to an extent that a person may not even think of looking for formal employment.
“For example, I started my business four years ago with only Shs7m but it has grown to over Shs30 million and I am able to pay fees for my children and take care of my family,” Mr Musoke says.
Response
The government has initiated several youth focused projects to promote entrepreneurship skills. For example, under the youth capital venture fund, Shs25 billion was provided in the financial year (2012/13) as start-up capital for the youth and medium enterprises.
In 2010, the government launched the non-formal training programme under the Ministry of Education and Sports, which saw a significant number of Ugandans acquiring non-formal skills which they can utilise to increase production.
New programme
In 2012, the government launched a new education programme named, “Skilling Uganda” meant to introduce short courses for school leavers at primary seven, senior four and six, school dropouts and graduates.
It is aimed at giving learners an opportunity to go through a parallel education programme to that of formal education.
Read MoreFAO roots for commercial fish farming
interview. The fishing industry remains one of the key contributors of foreign exchange in Uganda. The Food and Agriculture Organization (FAO) Country Representative, Alhaji M. Jallow, spoke to Daily Monitor’s Brian Ssenoga about FAO’s new interventions in the fisheries sector.
Give an overview of the Food and Agriculture Organization support to the fishing industry in Uganda?
Food and Agriculture Organization (FAO) is a specialized agency for agricultural issues and food security, including fisheries. In Uganda, the major source of fish is Lake Victoria and so the fisheries sector in the country is important. FAO jointly works with the government of Uganda in conserving fish stocks in the water resources.
The government set up the beach management units to regulate the fishing industry. However, the units have not been as successful as we envisaged in managing the resources and sharing the lake with other regional countries made the protection of resources more difficult. With time, we realized a shortfall in fish stocks, especially in Lake Victoria. Fishermen who caught 200kgs per day are now getting 20kg or less.
What we are addressing currently with the Ministry of Agriculture, Animal Industry and Fisheries is the aspect of fish farming (aquaculture) to complement catches from the different lakes in the country. We are involving the youth and fish farmers through a $500,000 (more than Shs1.3b) FAO funded project. It is not a lot of money, but we plan to use it effectively.
We recently evaluated the hatchery and pond construction challenges in the country. Fish feed availability is currently being assessed for improvement, especially at the farm level. In order to complement the aquaculture project, the Ministry of Finance has endorsed a $1 million (more than Shs2.6 billion) FAO funded project for the facilitation of youth employment through fish farming.
What is your assessment of the opportunities available in the fishing industry?
As I mentioned earlier, commercial fish farming will be viable in Uganda if we consider the abundant water availability and topography of potential fish farming areas. This will be necessary for the construction of ponds that can hold water and support proper growth of the fish for commercial purposes. Uganda produces up to 15,000 tonnes of fish from aquaculture, including production from small-scale fish farmers, emerging commercial fish farmers and stocked community water reservoirs, and lakes and rivers. There are an estimated 20,000 ponds throughout the country with an average surface area of 500 square metres per pond. With improved market prices for fish, government intervention to increase production and stagnant supply from capture fisheries, aquaculture has begun to attract entrepreneurial farmers seeking to exploit the business opportunity provided by the prevailing high demand for farmed fish.
This expansion in aquaculture has also resulted in the transformation of 20-30 per cent of the smallholder subsistence ponds into profitable small-scale production units through developments in management and production scale. However, fish farming as a business must be done from a professional point of view. There are some fish farmers, but most of them are doing it more for subsistence. Farmed fish has a huge market here and outside the country. Ugandans consume fish in large quantities but production has always been limited.
In terms of large scale investment for export, compared to the neigbouring countries, Uganda is strategically positioned and blessed with all the resources to support the fish industry. There is a huge market for Uganda’s fish and fish products in those countries. Fish exports generate substantial revenue averaging nearly $124 million in the last five years, representing 7-15 per cent of all agricultural exports. What is now lacking is money and commitment to heavily invest in the industry, including in fish farming. The fish value chain must be promoted with deliberate intentions to create jobs and industrialize the sector to effectively contribute to the development of the country.
What do you think are Uganda’s chances of having fish as a major source of nutrition and income?
Many people tend to look at food security as only the availability of food in the house, but, technically, food security involves food for consumption and at the same time to generate income to buy other things to fulfil human needs. It is known that fish is not only nutritious but has medicinal components as well. Yes, the lake volumes are dwindling but the fish farming option is here and we are ready to support it as a source of food and income. We are planning to get involved and work with fishing communities on protecting the resources in the lake and sustaining the livelihhoods of fisher folk in the country.
The World Food Day is in October, what is the theme for this year and how is it linked to fisheries?
Now that the World Food Day is near (October 16), we want Ugandans to know that this year’s theme is; “Family Farming: feeding the world and caring for the earth.” The UN General Assembly has declared 2014 as the International Year of Family Farming and this is to reposition family farming at the centre of agriculture and general policies in the national agenda to promote a shift towards a more equal and balanced development.
This is to raise the profile of family farming and smallholder farmers.
In Uganda, for example, there are 3.9 million agricultural households and these significantly contribute to food availability and eradicating hunger, promoting food security, nutrition, environmental protection and natural resources management. We can widen that to include the fish farmers and the fisherfolk in the fishing communities.
Read MoreUCC uncertain on registered sim cards as deadline looms
Uganda Communications Commission (UCC) was by yesterday unable to give the numerical progress of the ongoing sim card registration exercise expected to end on March 1, a year after it was launched.
In a telephone interview with the Daily Monitor this week, Mr Godfrey Mutabazi, the UCC executive director, said the overall performance of the registration campaign will be provided at the end of the exercise, reasoning that what is most crucial right now is for individual subscribers to ensure that their lines are registered as per the deadlines or risk being switched off in March.
He said: “Registration will be closed at the end of the month after which telecoms will be required to block unregistered simcards. Those that have not registered should hurry up and do so because; we (UCC and telecoms) agreed to maintain the initial February 28 deadline.”
Registration progress
UCC’s failure to provide simcard registration numbers is not helped by telecom firms, many of which have stayed cagey on their numerical progress. Save for Orange telecom which says that about 80 per cent of its 1.1 million subscribers had registered by end of January 2013; the others are only relaying percentages without declaring their latest subscribers bases.
For example, MTN Uganda says that more than 70 per cent of its subscribers had registered by end of January, Warid reports about 67 per cent, and Airtel more than 68 per cent. However, the failure to have a clear impression of the total numbers of the already registered and unregistered subscribers is in essence affecting all telecommunication stakeholders as no one can evaluate the progress of the exercise and forge a clear way forward.
Registration reasons
According to the ICT minister, Mr Ruhakana Rugunda, simcard registration was adopted to streamline the telecommunication sector and also protect both the country and its people from individuals who use mobile phones to plan and perpetuate crime.
But since the exercise was launched on March 1, 2012, telecom firms have highlighted absence of national IDs as the biggest challenge to registering their subscribers mainly in rural areas. This, they believed, has slowed what would have been a faster exercise.
Last week, a journalists’ body, Human Rights Network for Journalists (HRNJ) filed an application to court seeking an injunction to stop UCC from blocking sim cards of unregistered subscribers on the stated deadline, on grounds that the whole exercise is illegal as there is no parliamentary approval.
Read MoreNew telecom claims over 80,000 subscribers
New player K2 telecom, has already gathered more than 80,000 subscribers before launching calls across all networks services, Mr. Saul Katumba Segawa, the telecom’s interim chief executive officer, has said.
In an interview with the Daily Monitor last week, Mr. Segawa said in just a month after K2 was officially launched, the telecom has already acquired a clientele base of up to 82,000 subscribers and is now finalizing inter-telecoms before its full-service package is availed across all networks.
“K2 is finalising the process of interconnect negotiation with the other telecom companies; a process that has lots of relationship dynamics to agree upon such as call tariffs. In just a few days, we will have this finalised and K2 will effectively have full service levels,” Mr Segawa wrote.
He added: “We are focusing on building the K2 family with the benefits of affordable call rates. Our clients are benefitting from affordable calls at Shs100 per minute.”
Despite claims that the telecom is collaborating with an international telecom, Mr Segawa noted that K2 is an indigenous company without any foreign capital investment.
Asked to clarify about K2 telecom’s subscribers, UCC executive director, Mr Godfrey Mutabazi, said he did not have any official statistics since the new entrant has not submitted them.
Read MoreTelecom player faults industry price wars
A telecommunication player has advised his counterparts not to indulge in unjustified price wars again, arguing that they are harmful to the industry and unhealthy for the economy.
Speaking at a function to release its 2012 financial results in Kampala last week, MTN chief executive officer, Mr Mazen Maroue, said low call rates not only constrain telecom operators from making more investments but also lower their contribution to the economy through reduced tax revenues.
The telecoms industry entered a price war in 2010, stretching into 2011. According to the revenue collecting body, price wars in the telecommunication sector led to a shortfall of Shs24 billion due to the decline in average call rates.
Mr. Maroue said: “We have ensured that we have an efficient market and call rates that will contribute to the economy’s development.”
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Read MoreLow income earners to access insurance
Low income earners, who have for long been unable to afford insurance covers, are set to benefit from a new product that will enable them to pay their medical bills in case of an accident.
The MyLife mobile personal accident insurance product launched by Liberty Life – a life insurance service provider – and MCash – a mobile money payment service provider – provides cover for accidental disability, loss of life as well as hospital cash back in the event the insured is involved in an accident, upon payment of monthly fees of between Shs2,500 and Shs12,500 depending on the plan.
The product has three plans including silver where a customer pays monthly fees of Shs2,500, gold Shs6,250 for the gold plan and Shs12,500 for the platinum plan.
Upon being hospitalised for more than 72 hours, disability or loss of life, the beneficiary or customer is entitled to a lump sum of Shs1 million, Shs2.5 million and Shs5 million for the silver, gold and platinum covers, respectively.
Speaking at the launch of the product in Kampala yesterday, Mr Joseph Almeida, Liberty Life managing director, said the product was driven by the insurance firm’s commitment to create a range of products and solutions to meet customers’ ever changing financial, investment and lifestyle risk situations. “One will never know when an accident will occur and sometimes the unexpected happens when we least expect. …MyLife will take away the burden of worrying about the financial implication of such an accident,” Mr Almeida said.
Tracking claims
He added that the firm has sophisticated software that enables them to track at any stage claim submitted to ensure prompt settlement after receiving all the required documentation.
MyLife product is expected to improve access to insurance, especially among the lower segment of the population which has for long been untapped and grow penetration rates from the current 0.6 per cent, at which it has stagnated for years. The product, however, will be accessible to M-Cash account holders as premiums will only be paid through M-Cash.
Read MoreMake delighting customers your norm
LOSERS
Are some of the people you hire costing you lost sales? A few days after the World Cup Final, my friend William a devoted and loyal Nakumatt customer happened to be walking past Nakumatt and decided it would be a good place for him to purchase airtime. At the supermarket entrance, the plain-clothed security officer responsible for scanning everyone as they enter stopped William to let him know that he could not enter the supermarket with his computer bag.
When William innocently asked where he could leave his computer bag, the security officer informed him that he simply would not be allowed to get past that particular point, and that was the end of the story.
Interestingly enough, a uniformed guard who happened to overhear the exchange came to William’s rescue. The guard showed William where he could leave his bag before entering the supermarket and as they headed to that location, William let slip that as a loyal Nakumatt customer, he was completely disappointed by the rude treatment he had received especially since all he wanted was airtime!
The helpful guard then showed William a jewellery shop where he could purchase airtime, without having to leave his bag behind! I shudder to think of the number of customers that have suffered a negative experience at the hands of Nakumatt’s unhelpful security officer, and the resulting amount of lost sales.
What makes that security officer a loser? Ignoring William’s question, having the audacity to rudely turn him away with no solution and more likely than not, treating other Nakumatt customers similarly!
Offer solutions
WINNERS
What impression do you have of NSSF and its ability to quickly deliver on promises? My friend Sally recently emigrated from Uganda to the United States. With no plans of ever returning to Uganda, prior to her departure, Sally decided to claim her full NSSF entitlement, including interest. Contrary to the lengthy amount of processing time that both Sally and I imagined such a request would take, the entire exercise from document submission to receipt of funds took just under one month!
The Customer Service Officer (CSO) handling Sally’s request not only sent her weekly e-mail updates, but also took the trouble to follow up with NSSF internal audit personnel (who responded in a timely manner) when Sally sent an e-mail asking if she could submit alternative proof documents supporting her claim. In Sally’s own words, “I received very attentive and quick service – I was amazed!”
What makes NSSF a winner? The two different officers who offered Sally helpful and quick service point to the value NSSF places on delighting its customers.
Read MoreIs your company doing enough to promote its brand?
A brand is a “name, term, sign, symbol or design, or a combination of all intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.
Branding is not about getting the target market to choose you over the competition, but it is about getting the prospects to see you as the only one that provides a solution to their problem.
“To succeed in branding, one must understand the needs and wants of his/her customers and prospects. This can be done by integrating brand strategies through the company at every point of public contact,” Mr Jawad Jafer, Superbrands East Africa project director says.
According to him, a brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which can be influenced while others cannot be influenced.
“Great brands have something beyond primacy of product or service, high levels of awareness, satisfaction and ubiquitous distribution. They stand for something in the minds of consumers but above all these, they have established a bond primarily emotional between themselves and consumers,” Mr Jafer says.
For example in Uganda, some of the big brands include: MTN, Nokia, Coca-Cola, Business Power and Colgate among others; this is according to a survey carried out by Superbrands recently.
Mr Jafer advises that a strong brand is invaluable as the battle for customers intensifies day by day. He says that it’s important for a company to spend time investing in researching, defining, and building a brand. After all the brand is the source of promise to the consumer and it’s also a foundational piece in marketing.
When creating a brand strategy for a product or service, it is important to perform a careful analysis to determine principal barriers that you may come in contact with. These barriers are also known as market conditions that can keep your product or service from achieving success.
Mr Alex Wanjohi, the managing director of Chartis Uganda, says branding is also a form of lifestyle, because the consumers identify with your organisation for the reason that your services also happen to be their way of life.
He says that in most cases, it’s not about the name but the relationship between the organisation and its customers. “We recently rebranded from AIG insurance to Chartis but this has not affected our business instead it has had a positive impact because of the hype it generated. Besides our customers have continued to identify with our services which have become a way of life for them,” Mr Wanjohi explains.
Mr Daniel Ekisa, the operations manager of Basic Investments Limited, a marketing consultancy firm on Kampala Road says: “By branding, we add value to our clients by providing real clarity of thinking around their target and what their go-to-market proposition needs to look like to successfully compete,” he explains.
How to come up with a branding name, Mr Ekesa says that since a brand sells a product, it’s always advisable to sit on a round table with a client and exchange ideas.
Read More