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

BEWARE OF THE CON MAN

I read with a mixture of horror and sympathy for the victims of the latest Ponzi scheme gone bad in town. Last week a company, Global Cryptocurrencies Ltd, collapsed and along with it went billions of shillings, by police estimates, of their clients’ money. The company working out of an obscure office on Namirembe road, managed to rope in all manner of clients with the promise of magical returns – 40% a week! I have been in business for most of my life, if I could be guaranteed 40% week I would sell everything I own and jump in with both feet. Or maybe not. And this is why. They say if anything is too good to be true, it is. If you can get an annual return of 40% on your investment you will be doing extremely well. So if you put in a million shillings in your business and walk away at the end of the year with sh400,000 after taxes you have found a good thing, and I would like to be your friend. I have seen my share of scam artists and con men. Below are my fast an...

SPORTS AS AN ANALOGY FOR BUSINESS

Like everybody else I know, my spirit was lifted by the success of our athletes at the World Athletics Championships last week. The diminutive Halima Nakaayi showed the heart of a lion, sprinting over the last 100m of the women’s 800m event to snatch victory from a more favoured American runner. It was so uplifting to watch. Subsequent stories about the challenges she has had to overcome to get where she is now were testament to the determination of the woman. Joshua Cheptegei’s victory, while no less inspiring, had a different quality to it. Cheptegei was the man to watch going into the event. He won previously at the Commonwealth Games last year and the in the just concluded Golden League. He was a silver medalist in the 10,000m at the last World Championships in London, pipped to the tape by the now retired Mo Farah. Cheptgei still had to battle the Kenyans and the Ethiopians all the way. But as a favourite he lived up to expectations, which sometimes is more diffic...

WELCOME TO UGANDA AFREXIM BANK

Last week Afrexim Bank opened its regional offices here in Kampala in an event that I think should have had much more play in the media. The Afrexim Bank has as its stated mission the desire to stimulate trade, primarily within the continent but also improve Africa’s trade with the rest of the world. Worthy goals and we should sit up and take notice. The bank’s coming to Uganda is not by chance. A lot of work was done and supported by President Yoweri Museveni to win it away from neighbouring Kenya. The Ugandan businessman is bound to benefit from the proximity to the bank if we get organized. "Of course the bank will be dealing with big deals, but one can hope their expertise in trade financing and the other products they bring to the table, can trickle down through the financial sector and improve our dealings.... But just to give a perspective of what our businessmen suffer because of the gaps in trade facilitation in our economy. Say I want to import...

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...