Business & Management
Academicians Retooled on the System of Environmental-Economic Accounting (SEEA)
By Jane Anyango
Over 30 members of the academia comprising staff and graduate students from Makerere University School of Economics, Muni University and Makerere University Business School on 28th September, 2021 converged for a training on the System of Environmental-Economic Accounting (SEEA).
The blended seminar held physically and virtually was organized by the Environment for Development Initiative (EfD-Mak) Centre facilitated by the Makerere University don, who is also Research Fellow at the EfD-Mak center and Fulbright Scholar Dr. Nickolas Kilimani.
Dr. Kilimani streamed live from the USA on the System of Environmental-Economic Accounting focusing on the Integrated Water Resources Management, Policy Analysis and Decision making.
Dr. Kilimani highlighted the recent developments in Environmental-Economic Accounting in Uganda, the System of Environmental-Economic Accounting and its objectives, Water resources accounting modules and the role of Water Accounting in Integrated Water Resources Management (IWRM).
Dr. Kilimani observed that the national economic policy has been underpinned by macroeconomic theory and the necessary statistics are collected and arranged using the System of National Accounts (SNA) which covers all economic activity from production to consumption and accumulation, and all industries using the Gross Domestic Product (GDP) as the key indicator.
He noted that the basic theoretical foundation of the SNA has not changed since 1953 even with the detail that has evolved with technological, economic and social change adding that, for more than 70 years, governments and business have used the information from the SNA as an information source in economic analysis and policy.
“The SNA does not adequately account for the environment and yet economic activity can adversely drive both observed and unobserved changes in it. The System of Environmental-Economic Accounting (SEEA) aims to address the deficiency of the traditional national accounting (the SNA) by accounting for the environment and linking it to environmental information through common concepts, definitions and classifications” Dr. Kilimani stated.
Compared to the SNA, Kilimani said, the SEEA is not yet widely used in decision making, partly because, it has recently been adopted as an international standard.
Dr. Kilimani said the objectives of SEEA are to develop a consistent data system for economic and environmental data and provide a common system to derive indicators and measure sustainable development.
He explained that the SEEA provides a better measure of national wealth to include not only produced capital but also natural capital, and assesses availability of natural resources, their use in production and final consumption and the cost of depletion. In addition Kilimani said, SEEA assess the level and cost of emissions and other waste from production and consumption and identifies monetary flows related to the environment which are already within the SNA (e.g., expenditures on environmental protection, environmental taxes and subsidies,etc.)
Dr. Kilimani underscored the role of Water Accounting in Integrated Water Resource Management (IWRM) noting that the growing pressure on water resources and high uncertainty on future water availability have caused the urgent need for better planning and management.
He emphasized that water is not only essential to cover basic needs for humans and the environment that underpins them, it is also a key factor for the economic development of diverse sectors with conflicting interests as regard to its use.
“The IWRM paradigm is considered a good approach to deal with those complexities. It proposes a coordinated utilization of water and land resources to support economic and social development without compromising environmental sustainability.
It recognizes that water management is a key aspect since human intervention is the trigger for all trade-offs and conflicts around water. IWRM highlights the influence of catchment management on water resources quantity and quality, as well as the need to preserve the natural capital for future generations.” He added.
Dr. Kilimani said Water management is considered a social, economic, and political issue rather than just technical and therefore, stakeholder involvement in water management is needed and this translates into legal requirements for public participation and transparency in water governance.
“The value of water, the opportunity costs of its allocation, or the costs of making it available should be known and recognized in order to incentivize water use efficiency. The implementation of those legal requirements calls for making information about water publicly available in a clear and accessible way. In this sense, water accounting emerges as a useful tool to promote efficiency and transparency in water resource planning and management”, Kilimani stated.
The current and proposed framework for IWRM in Uganda
Dr. Kilimani said the existing institutional and policy framework shows the multiple institutions charged with the management of water resources in Uganda, but, there is a need for an explicit connection between water sector policies and those of the social-economic sectors, since water resources are a key input into the country’s economic and social sectors.
“The institutional framework in Uganda, provides for a key component such as Water for Production. Institutions in charge of managing the productive sectors of the economy, i.e., MoFPED, (MAAIF), and the MTTI need to link their development plans and policies with those of the water sector. A sound national water policy should relate the different development plans of the social-economic sectors in an explicit manner”. Kilimani said.
In the (2015) paper, Dr. Kilimani and other researchers proposed a framework for policy analysis which relates the development plans for the different social-economic sectors to those of the water sector.
This framework he said is aimed at providing policy analysis of IWRM in a typical economy by linking e.g., agriculture, industry, households, hydro-electricity and navigation which are key sectors that primarily depend on water.
The don explained that development plans in these sectors involve several policy variables and inputs. Therefore, the interaction between the policy variables and their impacts are monitored through multiple indicators in the social-economic and ecological domains.
“Given the multiplicity of variables, the SEEA framework uses aggregated water data as do the existing approaches for analyzing the associated policy impacts.
Computable general equilibrium (CGE) models also use aggregation and hierarchical decomposition in order to simplify model development and data compression to manageable sizes.
While the aggregation hides some of the temporal and spatial variability, it still preserves the fundamental trends that help to provide needed answers by policy-makers”, Kilimani said.
SEEA, a new area of interest to academicians and the Government of Government
The Director EfD-Mak Center Prof. Edward Bbaale described the seminar as the most exciting because it brought on board a new area which is of interest to the Government of Uganda.
Prof. Bbaale said, Uganda Bureau of Statistics, the National Planning Authority and other partners are trying to work on the system of Environmental-Economic Accounting away from the conventional system of National Accounting.
“Our System of National Accounting is deficient in incorporating Environmental aspects because as we produce and consume, then in one way or another, we are depleting the environment which we refer to as natural capital and this natural capital is all the time depreciating but there is no way in our conventional GDP measurements that, but now, this new system is solution to this”, Prof. Bbaale stated.
From the academic perspective, Prof. Bbaale commended the facilitator for showing participants how to undertake the System of Environmental-Economic Accounting and ably bringing participants on board in terms of the key variables that are important in this new system specific to the water sector.
The Director appreciated Dr. Kilimani for exposing participants to the policy, non-policy and the output variables and giving tips on some methods such as the Computable general equilibrium (CGE) which can be utilized to understand the impact of a policy decision on the rest of the economy in terms of the social, economic and environmental outcome.
“The lesson here is that we need to invest our time into understanding this new System of Environmental-Economic Accounting as a way of incorporating new ventures in our research as economists and academicians. And to our graduate students, this is an area worthy of investing their time and I am glad that a number of graduate students attended this seminar”, Prof. Edward Bbaale said.
Prof. Bbaale said, a number of reports are already out and that SEEA is an area which is very virgin, where very limited research has been undertaken partly because of lack of numbers that incorporate the environment into the entire national analysis.
“But now, some strides have been taken, some milestones are being achieved and if our own, Dr. Nickolas Kilimani with a Fulbright Scholar in the US is having all these on his fingertips, it is a huge resource to Makerere University, to our country and it is a starting point of deeper analysis into how the environment is being affected when we are doing our production and consumption activities”, Prof. Bbaale said.
He reported that the seminar was quite intriguing and important for national policy and pledged to arrange to involve policy makers from the Ministry of Water and Environment and the National Water and Sewerage Corporation in the next seminar.
Participants comment on the seminar
Makerere University PhD student from the School of Economics Alex Aliga, who is also a lecturer at Muni University Uganda said the seminar was timely.
“It has enriched many of the things that I had learnt in class and I had taken for granted. The System of Environment and Economic Analysis though new is very important and interesting because once you begin to understand Natural Resource Accounting and integrate it into GDP, then we get to understand the full value of our resources. In that case, it means that we may actually be richer than what we thought we are. Some of these things are not easy to bring to the GDP which is the measure of our national economy.
I got many lessons; – understanding how you can apply the theoretical things into practical and to influence policy is very important for our country. Given the fact that our resources are under attack, climatic change and environmental issues are real, we need this knowledge so as to be able to sustainably use our resources for a better future”, Mr. Aliga said.
Dr. Paul Edabu, a Senior Lecturer at Muni University said:
“The day’s seminar was an eye opener to the current situation in Uganda bearing in mind that we have two blocks of people who are in accounts and economics and there is no integration even in our ministries.
Our country is at a paradox, today people are restricted to cut trees from the forests and also carrying out farming in the wetlands and the next day, a factory is erected in the wetland. This seminar is timely and something I had yearned to learn because it incorporates the environment as a key resource into the national accounting system”, Dr. Edabu commented.
SEEA and the Government of Uganda
Government of Uganda (GoU) is moving towards resource-led industrialization by developing a set of natural capital accounts under the Uganda Natural Capital Accounting (NCA) program. The National Biodiversity Strategy and Action Plan (NBSAP), National Development Plan, and Uganda Green Growth Development Strategy (UGGDS) recognize the challenges of development planning without accounting for its effect on natural resources, many of which are non-renewable.
In cognizance of the above, GoU with her development partner UNEP with its World Conservation Monitoring Centre arm is working with the Darwin Initiative to develop Natural Capital Accounts for Uganda.
The project is aligned with existing initiatives on natural capital accounting, i.e., the Gaborone Declaration for Sustainable Development in Africa, the UN project on Natural Capital Accounting, and the World Bank Wealth Accounting and the Valuation of Ecosystem Services programme.
The Uganda Bureau of Statistics (UBOS) Ministry of Water and Environment, and Ministry of Lands, Housing and Urban Development commenced with the development of land accounts and Water accounts in 2019. Under the NCA program, the country launched the Wood Asset and Forest Resources Accounts.
Natural Capital Accounting effort is based on the international statistical standard, System of Environmental-Economic Accounting (SEEA).
Jane Anyango is the Principal Communication Officer, College of Agricultural and Environmental Sciences (CAES)
Business & Management
The Academia & Government Officials Identify Research & Data gaps in the Management of Natural Resources in Uganda
Environmental economists and graduate students from Makerere University held a meeting with government officials to identify research and data gaps to address the persistent environmental and natural resources (ENR) challenges in Uganda.
The two-day researchers’ training organized by EfD Uganda was held at Esella Country Hotel in Kampala, on 14th and 15th March 2024,
Local Government (LG) representatives were brought on board to help understand policy research questions in the local government that researchers can leverage to generate evidence to inform policy implementation and improvement in service delivery and environmental protection in general. The District Natural Resources Officer for Wakiso, Rebecca Ssabaganzi, was the lead facilitator.
The national policymakers, on the other hand, presented policy, capacity, research, and data gaps that researchers can focus on to improve their work. Ronald Kaggwa from the National Planning Authority facilitated the training.
Center Director Edward Bbaale said the purpose of the workshop was to identify what natural resources and environmental issues are being pitched in National Development Plan (NDP) IV and how Uganda is transiting from NDP III to NDP IV to inform their research.
“This is a great opportunity for our researchers to have a deeper discussion with the local government and National Planning Authority on critical issues and that the government is focusing on so we can ensure that our research is policy-relevant,” said Edward Bbaale.
He urged the government to reduce taxes on renewable energy as a key tool to encourage the public to drop the use of biomass which has negative effects on the environment and human health.
“Transitioning from the dirty sources of energy to the cleaner sources of energy is a very expensive venture and it requires infrastructure investments. We would like to hear about green financing and what the government is planning to do to raise the money,” he remarked.
From the Local Government presentation, Ms. Rebecca Ssabaganzi focused on the role of Local Government in protection of natural resources, the structures, challenges and capacity gaps for research. Ssabaganzi stressed the need to raise public awareness on the sustainable use of the environment and conservation as an obligation for everyone, the need for mindset change for the public to adopt alternative energy sources and investing in eco-tourism as well as the regulation of building substances and valuation as a basis for revenue assessments and best development use.
She explained that poor management of water, environment, and natural resources coupled with the worsening effects of climate change have resulted in high exposure to hazards and disasters, with limited capacity for climate change adaptation and mitigation, low disaster risk planning and rampant degradation of the environment and natural resources caused by low enforcement capacity.
From the national planning perspective, Ronald Kaggwa highlighted the persistent ENR management challenges inherited from NDPI, II, III to IV.
These include deteriorating state of ENR, enforcement and compliance challenges, limited use of economic incentives and income poverty among the ENR-dependent populations. Kaggwa also reported that there is low value-addition to ENR, excessive reliance on the market prices to make major decisions and challenges on how to balance the benefits and real costs of natural resource conservation.
Kaggwa proposed some thematic areas for research to inform policy. These include reviewing policy, legal, and institutional frameworks for effective ENR governance and management; reviewing the effectiveness and efficiency of the program approach to ENR governance and the likely impacts of the rationalization of ENR institutions on performance;
Other research areas proposed are coordination, regulation, and monitoring of ENR management at LG and national levels, exploring the feasibility of economic instruments for ENR management, and the public good and trans-boundary nature of ENRs and governance challenges.
Key takeaways from the workshop
From the presentations and group discussions, the meeting agreed on key thematic areas for research including valuation of existing resources, appropriate mix of policies, stocktaking of existing data and the role of decentralization in protecting the environment. Other proposed areas are climate financing and transitioning to a low-carbon economy, cost-benefit analysis for an energy transition and climate change and its effects
The meeting also resolved to strengthen collaborations between Makerere University‘s existing projects, government ministries, departments and agencies, development partners and international agencies, financial institutions, and civil society organizations.
EfD-Mak to prepare research proposals and tailored courses
Uganda’s IGE policy engagement specialist Peter Babyenda said the meeting identified the capacity gaps in Local Governments that the center can fill, by preparing tailored courses to address gaps. The courses would entail training Local Government workers in data collection, evaluation of natural resources, stakeholder engagement, mindset change, and feasibility studies
For the researchers, the meeting informed them of where they are needed and their role at a national level.
“We are preparing our research proposals to have multidisciplinary research projects, which means, we need sociologists, accountants, statisticians for data collection, etc. but also, a partnership between academia and policymakers”, Peter Babyenda said.
The center will build on key issues generated from the meeting.
Jane Anyango is the Communication Officer EfD Uganda
Makerere University in collaboration with three partner companies have recognized and awarded best performing business graduates of the 74th graduation who were conferred with bachelors and Masters in January.
The companies including Prudential Uganda, ACCA, and EPRC presented to graduates with cash prizes, mentorship and training opportunities in the companies.
The recognizing and awarding ceremony was held at the School of Business, Makerere University on March 12 from where 12 graduates from the College of Business and Management Sciences (CoBAMS) received their prizes.
While addressing the graduates and their parents, Prof Barnabas Nawangwe, the University Vice Chancellor, congratulated the awardees upon obtaining good degrees.
“It is very difficult to get a good Makerere degree. If you are being honoured you have got a first class, you must count yourself extremely clever and also blessed by God,” Prof Nawangwe said.
The VC said he has struggled to create a conducive learning environment for the students by restoring discipline among the students to connect them to the world.
“We have been trying hard to restore discipline and people didn’t know. So if you go anywhere in the world people know Makerere is a serious university and you will be considered favourably compared to other people.”
Makerere has maintained partnership with companies already thriving in the industry to help students get exposed to the field of their work and also get opportunities through graduate training to gain experience.
Prof Nawangwe has signed several memorandums of understanding over the years with those companies and the relationship have been so helpful especially for self-growth of Makerere products.
“Our partners are in the industry understand it better than we do. When they come and inspire you, they add to what we have done here to encourage you and give you more confidence that you can go out in the world and serve humanity and succeed,” the VC told graduates.
He encouraged students to look out for opportunities across the world.
“We are living in a very competitive world because currently you may find there are around 200,000 students in Uganda with degrees and yet jobs are very scarce.”
He recalled in 1970s, when he was a student at Makerere and they were not more than 2000 people studying at the time and it was a sure deal for all of them to get employed somewhere.
He discouraged graduates against walking on the streets of Kampala looking for jobs and encouraged them to try out international opportunities and self-employment.
“The good thing the population in the rest of the world is going down. It is only in Africa where the population is going up. With the decrease in population, there are many countries where there is a big deficit of skilled workforce.”
Prof Eria Hisali, Principal COBAMS, pledged more support to this year’s academic giants and promised to provide them with all the necessary assistance they may need.
“We have quite a number of initiatives and when we call upon you to participate in some of them, please respond positively. We are still fully available to support you in any way possible,” Prof Hisali said.
The principal lauded the VC for his tireless efforts to partner with different companies through MOUs he signs every now and then.
“For any MOU that comes his way, Prof Nawangwe has been there for us to sign them on behalf of the university,” he said.
Prudential Assurance
The CEO of Prudential Assurance, Mr Tetteh Ayitevie congratulated the graduands saying “your relentless pursuit of knowledge and your unwavering determination have set you apart as the best and brightest in their field.”
Mr. Tetteh revealed that with the support of their Support Scheme, the awardees are not only receiving financial assistance but also mentorship and internship opportunities that will propel them towards success in their future endeavours.
Prudential Uganda rewarded the top five Actuarial Science students with $500 each.
Additionally, through the Prudential Actuarial Support Scheme (PASS), these students will receive scholarships fully covering their professional exam fees.
In total, Prudential Uganda has dedicated one hundred and thirty-five million shillings (UGX 135,000,000) to support the students.
The country Manager of ACCA Uganda, Ms Charlotte Kukunda, said while awarding the best student of Bachelor of Commerce, Mr ………………. And reminded the students of the exception that ACCA granted students of Commerce (Accounting). The students get 9 exceptions at ACCA level.
Ms Fatumah Namubiru from Economic Policy Research Centre (EPRC), congratulated the Sebuliba Jude, upon emerging the best Masters of Economics students and also called on the female students to strive hard to be among the best. Jude received a placement as a research fellow at EPRC and Shs1.5million.
Best students
Jude Sebuliba, the best student in the Masters of Arts in Economics with CGPA of 4.95, said the conducive learning environment created space and time for them to read his books.
“I dedicated much of my time to books, perseverance, God and parents were all part of my journey up to this milestone I have reached today,” Sebuliba said.
His research was about the impact of remittances to inflation in Uganda and his findings revealed that there is a positive impact between inflation and remittances.
“Many people go out but we don’t know the impact of the money they get to our economy.”
The best Master’s student now is eyeing a PhD if any opportunity avails and is currently blessed with a job at the Economic Research Policy Centre of Makerere University where he is employed as a researcher.
Derrick Amanya, Bachelor of Commerce (BCOM) graduate, scored a first class of CGPA 4.54 and attributes excellence to hard work and group discussions.
The research he conducted from Mbarara District was about ‘How sustainability can be adopted in furniture” He looked at ways to make furniture that has metallic components in an effort to reduce deforestation in the country.
“My research found out that if certain components of furniture are used on metallic components, it can reduce on depletion of forests to up to 60 percent,” Amanya’s findings revealed.
The fresh graduate is now enrolled for CPA and he is sitting his first exams in June, thanks to great partners, the ACCCA.
Anneliz Namuddu, B. Sc. Actuarial Science graduate, as well prioritized discussions after believing at University if you are not a part of any discussion group, you cannot understand the concepts.
“I always trusted God in addition to serious attention I gave to books and ensuring that she prepared for her exams in time not waiting for the last minute to panic.
Her research was about factors influencing expenditure among women in rural areas of Uganda. And used secondary data which she converted in to small variables that were convenient for her.
The research findings indicated the expenditure is mostly influenced by the sources of income women are getting and from the kind of family they are in. Is it a single parent home or are they married.
“I thank Prudential for the scholarship they gave me to do the certification that confirms me to be a qualified actuary,” Namuddu said.
The best students B.sc Actuarial Science
- Muhumuza Mark
- Kobugabe Michelle Audrey
- Uwera Ruth Michelle
- Bunjo Steven Hugh
- Namuddu Anneliz
Best students Bachelor of Commerce
- Lwamasaka Prosper
- Nanfuka Sheebah
- Amanya Derrick
- Birungi Mercy Olivia
- Kaganzi Devis
- Namubiru Phionak Rebecca
Best Master of Economics
- Sebuliba Jude
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