Skip to main content

WE NEED FASTER TURN AROUND ON OUR ROAD PROJECTS


During a recent trip to China I was shocked to find properly paved roads and first class infrastructure deep in the countryside, hundreds of kilometres away from the capital, Beijing.

I rode the high-speed railway out of Beijing, doing more than 300 kilometres per hour and I can attest I have never been on anything like it anywhere in the world. Not in Europe. Not in the States. Nowhere.

I was blown away and wondered why we can’t at least do a tenth of this at home.

I have to say I was pleasantly surprised when I used the Entebbe Expressway from the airport. I was in Kampala in under an hour. The Entebbe road had become a nightmare.

I was shaken out of my good feeling when I had to make a trip to Tororo the other day. On my way back I spent two and half hours between Mukono and Kampala, about the same time it took me from Tororo up to Mukono.

Clearly there is a lot of work to be done on our transport infrastructure. The full extent we probably don’t appreciate, until like me, you see better.

The problem has its roots in the colonial era, when the British only built enough infrastructure to evacuate our raw materials – coffee, cotton, copper, to the coast and on to their factories. But more recently the lack of new additions to the stock of infrastructure in the 1970s and 1980s means we are having to play catch up with a larger population’s needs.

While no new infrastructure was built in those years, the population doubled from seven million at independence to 14 million in 1986 when the NRA marched on Kampala.

In the subsequent years while the population has continued to balloon – we are now touching 40 million, red tape has put the brakes on our infrastructure development. I have heard it said that it takes an average of seven years from conception to final commissioning of our roads.

Time lost we cannot afford to waste.

It is obvious but worth restating that infrastructure is what unlocks the potential of a country’s people and land.

Anecdotal evidence abounds.

At the beginning of the NRM administration when they were rehabilitating roads, once the roads were done in western Uganda for instance, matooke that would have rotted in the villages found its way to market and suddenly people cemented their floors, roofed their houses with iron sheets and built more permanent structures. People’s lives were transformed literally overnight.

Clearly we are in the next stage of development, where in order to insert ourselves more meaningfully in the global value chains, the standard of our infrastructure has to jump many times in order to unlock even more, of our country’s potential.

For us at the Private Sector Foundation of Uganda (PSFU) we hear it over and over again our infrastructure especially transport infrastructure needs a major overhaul, to speed up the movement of goods and people as a major ingredient of bringing down the cost of doing business in this country.

To illustrate according to World Bank statistics an average middle income country has 88 km of paved road per 1000 square kilometers of land area. The equivalent number for Uganda is 16 km or thereabouts.

There are financing issues involved but we are heartened by the new potential for Public, Private Partnership (PPP) projects that can help overcome this challenge.

Thankfully this is not just theory. In China since the 1970s when the building blocks of the latest economic explosion took place they have committed at 8.5 percent of GDP on infrastructure development year on year until very recently.

As measure of how much work and sacrifice we need in this country 8.5 percent of our $25b GDP is about $2b or sh4trillion annually or four times what we currently commit to roads.

Given that we are still playing catch up from the lost decades, a new sense of urgency needs to be activated in our national projects.


(SEPTEMBER 2018)

Comments

Popular posts from this blog

NOT ONLY THE HARDWARE BUT THE SOFTWARE TOO

In the middle of September the United Nations released its annual Human Development Indicator (HDI). This index serves as an indicator of the quality of life of a country’s people by measuring the health, education, inequality, poverty and security standards. Aside from the statistical measures of development like GDP growth, this is obviously a better measure of how people are actually doing. In this year’s HDI report Uganda was ranked 162 out of 189 countries with a HDI score of 0.516. The index goes from zero to one, the nearer you are to one the better. Our score puts us in the low human development category. But as bad as that sounds we have been worse. In 1990, the earliest year that these figures were compiled our score was 0.311 even the UN recognises that we have improved 66 percent in the last three decades. According to the UN figures life expectancy has risen to 60.2 years   from 45.5 in 1990; expected years of schooling has doubled to 11.6 fr...

A STITCH IN TIME

Last week the Bank of Uganda raised its key Central Bank Rate (CBR) a percentage point to ten percent from nine percent. This was the first increase in more than a year, a move prompted by BOU’s projection that price increases coming around the corner. Increasing oil prices, a weaker shilling and new taxes on mobile money services were cited as reason for this anticipated increase. We know that in the last year or so there has been a cash squeeze, money has been hard to come by. While the economy has been growing this has not been spread around evenly. It was hoped that if the economy can keep growing we can all begin to feel the joy. The Bank of Uganda has helped on this front by lowering its CBR from a high of 21 percent about seven years ago when inflation hit record levels. This allowed more borrowing by the private sector which has helped keep our economy ticking. But just when the economy was beginning to gain traction BOU has slammed on the brakes. We may ...

FINANCING OUR ENTREPRENEURS, A CHALLENGE WE CANNOT IGNORE

In recent weeks the issues of financing for business has been in the news, in one form or the other. We have seen the challenge a past minister is facing with having to hang onto his home. The case is in court, so we can’t discuss its merits and demerits, just to say he may have fallen prey to some predatory practices, with the lender skirting dangerously on the edge of the law. Across the border in Kenya a cap on bank lending rates has been repealed. Three years ago Kenya’s parliament passed a law restricting lending rates to two percentage points above the rate at which the central bank lent money. In reaction banks pulled back their lending to businesses, depressing the economy and prompting the reversal. So now banks can “properly” price their loans, often to the discomfort of small and medium sized businesses. The two incidents are related and speak to the availability and cost of credit. In my business career I have benefitted immensely from credit. It is next...

OUR HISTORICAL SITES SHOULD NOT GO UNATTENDED TO

Recently I was at Makerere University to attend a wedding ceremony. I hadn’t been on the university’s grounds in a while. I was shocked at how run down Mary Stuart and Lumumba Halls were. They are in need of serious work. These thoughts were reawakened with the recent launch of the coffee table book “Beyond the Reeds and Bricks” promoted by the tourism ministry, the cross cultural foundation of Uganda and the European Union Delegation. The book which is aimed at the protection of historical sites and buildings in Kampala, Entebbe and Jinja, is a moving collection of pictures of buildings and sites we know, but probably take for granted when we pass them as we go about our business. "Entebe za Mugula in Entebbe, Mackay’s Cave, the post office in Entebbe, the Stanbic Bank Branch in Jinja, Hamu Mukasa’s house in Mengo, the main building at Makerere , the Bahai Temple, Kibuli mosque and many other sites have pride of place among the 60 pictures in this book, which is ...