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

OUR WOMEN AMONG THE BEST ENTREPRENEURS BUT…

A study carried out in 57 countries around the world established that Ugandan women are among the most entrepreneurial in the world. The 2018 Mastercard Index of Women’s Entrepreneurship released last week showed that one in three businesses or 33.8 percent of businesses in this country belong to women. Our women were third behind their counterparts in Ghana, 44.4 percent and Russia, 34.6 percent. Survey after survey has shown that Uganda is one of the most entrepreneurial counties in the world, so it should come as little surprise that our women are among the most entrepreneurial in the world.  This does not in any way take away from their own initiative and resilience in surviving our competitive business environment. Our entrepreneurialism was forced upon us by the hard times we faced as a nation in the 1970s and 1980s, when few if any salaries could carry families through the month. For the majority of us who did not have the option of leaving the country...

THE MUKWANO I KNEW

We have lost the greatest Ugandan entrepreneur of our time, Mr Amirali Karmali, more popularly known as Mzee Mukwano. I have known Mzee Mukwano for more than 40 years and most of what I am today is due to him. And I am not alone. "He has helped countless people through school – as he did me. Helped countless more in business – as he did me. And he has been a steadfast friend and source of support to countless more – as he was to me.... I first met Mukwano around about 1977. My mother was the secretary for the chief of operations at Uganda Airlines, a man I knew only as Hamid. Mukwano had come to charter the Uganda Airlines’ Hercules plane and I happened to be around the office then. He was a short man, an unassuming man, but clearly a serious businessman who would charter the plane to bring in goods that were in high demand here. He run a popular whole sale shop in Nakasero – Egesa Commercial Agencies, a beehive of activity and the go-to place for anythin...

LET THE UN BASE SAGA BE A LESSON TO US

I have watched with much interest as the issues of the UN base in Entebbe have played out in recent days. At the beginning of the month it was reported that the UN secretary general Antonio Guterres, had signed off on a new structure, The Global Services Delivery model, that it was suggested would see Uganda losing the Regional Service Center in Entebbe (RCSE) to Nairobi. Under the new model the UN would have three key centers in Hungary, Kenya and Mexico. In response to a letter by President Yoweri Museveni, Guterres assured him that the RCSE would remain in Entebbe. Though some functions will be relocated to Nairobi in the short term, in the middle to long term he sees the role of RCSE expanding and growing in importance. The new development takes effect from 1 st July this year. According to their website the RCSE serves more than 20,000 personnel on the continent, does administration and communications support for thousands more around the world and has an...

UMEME A RECOGNISED SUCCESS BUT …

  Recently the World Bank did a survey of the power utilities on the continent. Of the 39 utilities surveyed only two, in Uganda – Umeme and in Seychelles, were able to cover their operating costs and capital expenditures – maintenance and expansion of the grid. The report went on to point out that only 19 or about half of the surveyed utilities were able to meet their everyday costs like salaries. Essentially most of our power utilities on the continent are technically bankrupt. This has far reaching ramifications for the industry as a whole. When you, the client, pays your bill, Umeme then passes money up the line to pay the transmission and generation companies. If Umeme does not collect the revenues due to it or does not price the power at an appropriate rate, the pain will be felt up and down the sector. The transmission company would not be able to maintain and extend its network and the generation company would not be able to generate efficiently or build ...

OIL IS COMING BUT LET US NOT FORGET OUR GOLD

The country is operating on a time table that first oil will be seen in 2020. There is a lot of frenetic activity around building supporting infrastructure, getting investment approvals, ensuring local participation and any number of other things to ensure readiness the moment the oil starts gushing down the pipeline to the coast. And so we should. I was intrigued the other day to read in the Kenyan press how Kisumu County, just across Lake Victoria from us, has set upon an ambitious project to ensure egg and poultry meat self-sufficiency for the county within the next few years. Under the plan Kisumu County will train 100 farmers every month over the 12 month pilot period. The intended aim is to be able to satisfy the county’s demand for 25,000 broilers and 75,000 eggs daily. Whereas I would prefer that this was private sector driven deal, I like this plan for a number of reasons not least of all that it shows leadership by the county and secondly, it relies o...

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...

LOCAL CONTENT IS NOT A DONE DEAL, WE NEED TO DO MORE

This year’s “Oil & Gas Convention & Regional Logistics Expo2017” has just concluded after three days of discussion, exploration and soul searching. First oil in Uganda is expected by 2020 and this Expo among other efforts are targeted at getting our local businessmen ready to take advantage of this historical development. At the risk of sounding like a broken record, the discovery and eventual exploitation of our oil resource is one of those once in a generation events, that can transform this nation, not only on a macro level but also in our individual lives. For starters at least $20b will be spent over the next three years in infrastructure development and other things that will ensure we are ready to pipe and refine our oil. During the exploration phase about $3b was spent by the international oil companies, with on three in every ten dollars being retained here. That was an exploration phase and one hopes that we have learnt enough from that period to ...