Business & Management
School of Business Staff undertake Capacity Building
In a bid to keep abreast with the changing trends in the business sector, staff of the School of Business, College of Business and Management Sciences (CoBAMS), led by the Dean Dr. Akileng Godfrey on November 3, 2021 spent the day interacting with players in the private sector. The staff undertook the capacity building as part of their continuous professional development.
The staff heard from Mr. Kakande Robert, the MD of Finca Uganda who shared an analysis of the performance of the financial sector in Uganda. The participants learnt that despite the Covid–19 pandemic, the banks saw an increase in cash deposits by 20% and a decline in the loan portfolios by 14%. This was attributed to the decline in trade, owing to the travel restrictions. This was also compounded by the fact that Ugandans are generally a risk averse population. Many people, about 49%, borrow from informal lenders such as friends, family and investment groups. It was noted that only 11% of the population keep their money in banks. About 43% keep money in saving groups, 27% keep it at home while 23% keep it on mobile phones.
This, Mr. Kakande said calls for a national financial inclusion strategy. Some of the emerging and contemporary issues in the financial sector include digitization. The world is growing exponentially, which calls for new ways of doing things. The development of the internet, artificial Intelligence, Internet of things has forced banks to digitize all their services. This Mr. Kakande said, has helped improve customer experiences and reduce the number of people transacting in the banking hall. Today, Uganda has 28 million mobile phone users, 12.1 million internet users and 3.6 million social media users. This means the financial sector also has got to evolve and meet the demands of these customers. This has seen the development of online banking, bank to phone transactions, which have greatly improved the financial sector.
The participants learnt that Bank of Uganda, had issued new regulations for commercial banks, in an effort to secure depositors money. This, Mr. Kakande called the BASEI 11 Capital Accord Framework. Commercial banks are now required to have operating capital of Shs150 billion up from Shs25 billion, while tier 4 institutions such microfinance institutions are required to have capital of Shs5billion up from Shs500 million. BOU has also set out to regulate the Mobile Money business which is being run by the telecommunication companies.
Another emerging issue is Bancassurance. This is a relationship between a bank and an insurance company that is aimed at offering insurance products or insurance benefits to the bank’s customers. In this partnership, bank staff and tellers become the point of sale and point of contact for the customer. Agency banking is another contemporary trend that the financial institutions have adopted. This has also been done in an effort to extend the bank to the clients.
On the issue of high interest rates charged by the banks, Mr. Kakande said, this is because the credit risk among the population is high. The emergence of Infrastructure bonds is something the financial sector players also have to look at in the future.
The staff also got an opportunity to interact with Mrs. Immaculate Ngulumi, the Marketing Manager of Centenary Bank. She shared how the service industry has been able to attract and retain clients. Mrs. Ngulumi said that because service is not a tangible product, the service providers have to appeal to the emotions of people. This, she said calls for investment in 3 Ps (People, processes and physical evidence). The people/staff, she said, have to be well trained, motivated and treated well, so that they can pass on this positivity to the clients. The processes have to be quick and seamless while the ambiance must be good. She shared with the team, the 4 aspects of managing services
- Managing customer relationships
- Managing service quality
- Managing service productivity
- Managing staff and positioning services
Mrs. Ngulumi concluded by saying that in the service industry, the customer does not buy a product, they buy the experience, so give them the best experience.
Other topics discussed included the International Financial Reporting Standards and the role of the private sector in public sector procurement.
The Dean School of Business, Dr. Godfrey Akileng thanked the participants for attending and the facilitators for making time to share with his team.
Betty Kyakuwa is the Principal Communication Officer, CoBAMS
Business & Management
Public Investment Management Centre Concludes 4th Cohort Training on Financial Implications Guidelines
The Public Investment Management Centre of Excellence (PIMCoE), hosted by the College of Business and Management Sciences at Makerere University, successfully concluded the training of its 4th cohort of public officers on November 15, 2024. This capacity-building program focused on the User Acceptance Training on Guidelines for Clearance of Financial Implications, a critical process mandated by Section 76 of the Public Finance Management Act (PFMA), 2015.
Under the PFMA, every bill presented to Parliament must include a Certificate of Financial Implications (CFI) issued by the Ministry of Finance, Planning and Economic Development (MoFPED). The preparation of the Statement of Financial Implications (SFI), which forms the basis for the CFI, is the responsibility of Ministries, Departments, and Agencies (MDAs). This statement provides detailed revenue and expenditure estimates and projected savings over a minimum of two years’ post-enactment.
Empowering MDAs with Essential Skills
The training sessions, which began last week and will continue into the following week, aim to equip MDAs with the skills required to prepare robust SFIs. These competencies are essential for MoFPED Budget Analysts to review and draft CFIs or Letters of Financial Clearance effectively.
The 4th cohort comprised officers from key institutions, including the Ministry of Lands, Ministry of Agriculture, National Environmental Management Authority (NEMA), Uganda Land Commission, Ministry of Local Government, National Agricultural Research Organization (NARO), and the Ministry of Kampala, among others.
A Step Toward Transparent and Accountable Governance
Speaking at the closing ceremony, Mr. Moses Sonko, Principal Economist at MoFPED, commended the initiative and acknowledged the value it brings to Uganda’s public policy and legislative processes. Representing the Permanent Secretary of MoFPED, Mr. Sonko highlighted the importance of the training in strengthening governance frameworks.
“This training was developed to equip us with tools and knowledge essential for our roles in ensuring that Uganda’s policy and legislative proposals are financially sound, transparent, and align with national priorities,” Mr. Sonko remarked. He encouraged participants to apply their newly acquired skills to enhance policy preparation and implementation.
He also emphasized the multi-dimensional nature of the training, which enables officers to identify the financial, social, environmental, and economic impacts of proposed bills and policies.
Participant Feedback
Participants expressed their enthusiasm and gratitude for the training. Mr. Davis Kwizera from the National Animal Genetic Resources Centre and Data Bank (NAGRC&DB) shared his positive experience, stating: “This training has offered a wealth of knowledge and an in-depth understanding of policy processes. It will significantly enhance our ability to prepare relevant policy documents. If you’ve taken the courses on Financial and Risk Analysis as well as Investment Appraisal and Risk Analysis, this program completes the package.”
The new guidelines for the clearance of financial implications will officially take effect in July 2025. PIMCoE remains committed to building the capacity of public officers to ensure that Uganda’s legislative and policy frameworks are underpinned by sound financial and risk analyses, fostering a culture of accountability and sustainable development.
For more updates on PIMCoE programs and upcoming training sessions, visit PIMCoE’s official website.
In a pivotal workshop held at Makerere University on November 12, stakeholders, researchers, and policymakers gathered to discuss the progress and emerging issues in the implementation of Uganda’s Parish Development Model (PDM). This transformative model, conceptualized by Prof. Ezra Suruma, aims to tackle some of Uganda’s most pressing socio-economic challenges: poverty, unemployment, and limited access to essential services, particularly in healthcare and agriculture.
Prof. Suruma, the architect of PDM, underscored the crucial role of researchers in creating wealth-empowering strategies for Ugandans. “The PDM is designed to eradicate poverty, promote economic inclusion, improve service delivery, and modernize agriculture,” Prof. Suruma stated. He highlighted that the model not only provides a pathway for Uganda’s rural households to participate in the economy but also aims to address the underlying issues that leave many citizens unable to afford basic needs.
The Vice Chancellor of Makerere University, Prof. Barnabas Nawangwe, commended Prof. Suruma’s visionary leadership and the significant impact PDM is expected to have on communities across Uganda. “The PDM stands as one of the largest government interventions aimed at eradicating poverty and uplifting communities,” he remarked. Prof. Nawangwe also emphasized Makerere University’s commitment to supporting PDM through the PDM Lab hosted by the College of Business and Management Sciences (CoBAMS), which serves as a hub for real-time data analysis to guide the implementation of PDM activities across the country.
The PDM Lab at CoBAMS, led by Prof. Eria Hisali and funded by the United Nations Development Programme (UNDP), is instrumental in collecting, analyzing, and interpreting data that can shape PDM policies at the grassroots level. During the workshop, Dr. Suruma extended his appreciation to UNDP for their support and acknowledged the researchers for their efforts in generating valuable insights into the effectiveness of PDM.
Despite Uganda’s notable economic growth in recent years, poverty remains a persistent challenge, with a significant portion of the population struggling to meet basic needs. Unemployment rates, especially among youth, are high, limiting economic opportunities for the country’s largest demographic. Access to healthcare, particularly in rural areas, is another critical issue, with many Ugandans unable to afford or reach essential medical services. These challenges underscore the need for initiatives like the PDM that are designed to create sustainable economic opportunities, improve household incomes, and ensure equitable access to services.
“PDM seeks to empower households to create wealth, ultimately reducing dependence on subsistence farming and encouraging local economic development,” Prof. Suruma emphasized. He believes that the model’s holistic approach will foster greater self-sufficiency among Uganda’s communities by addressing poverty from multiple angles, including agricultural modernization, financial literacy, and service accessibility.
As the workshop concluded, participants expressed optimism about PDM’s potential to drive sustainable change. Prof. Nawangwe reiterated Makerere University’s dedication to supporting this national initiative, affirming that the PDM Lab will continue to play a key role in assessing and enhancing the model’s effectiveness.
The Parish Development Model offers a beacon of hope for millions of Ugandans striving for a better quality of life, aligning with Uganda’s broader aspirations for economic growth, social equity, and sustainable development.
Business & Management
Study Explores PPPs for Sustainable Development in Uganda’s Tourism and Health Sectors
On November 11, 2024 the School of Business held a research dissemination workshop led by Dr. Jude Thaddeo Mugarura, a lecturer and researcher whose study focused on “Managing the Public Private Partnership (PPP) Operating Environment for Sustainable Service Delivery in Uganda’s Tourism Sector.” The event also featured research by his student, Simon Peter Kyomuhendo, who presented findings on “Public Private Partnership Adoption, Local Content Utilization, and Value for Money in the Ugandan Health Sector.”
Both studies, which delve into the role of PPPs in two crucial sectors—tourism and health—aim to provide insights into how strategic partnerships between public and private entities can address pressing service delivery challenges in Uganda. Dr. Mugarura’s study in the tourism sector emphasized the importance of a stable operating environment for PPPs, highlighting the need for clear policies, regulatory support, and sustainable practices that allow both public and private stakeholders to thrive. His research suggests that a conducive PPP environment is essential for Uganda’s tourism sector to achieve sustainability, attract international visitors, and create job opportunities, while preserving the country’s cultural and natural heritage.
Kyomuhendo’s research, titled “Public Private Partnership Adoption, Local Content Utilization, and Value for Money in the Ugandan Health Sector,” explored how PPPs can improve value for money (VFM) in healthcare delivery by encouraging local content utilization. His findings revealed a positive correlation between PPP adoption and VFM in healthcare, suggesting that well-structured partnerships can enhance efficiency and service quality. However, he noted that while PPPs support infrastructure development and resource allocation, local content utilization does not always have a strong moderating effect on VFM, indicating potential areas for policy improvement to ensure meaningful local engagement.
Dean of the School of Business, Prof. Godfrey Akileng, lauded the researchers for their dedication to tackling critical issues in Uganda’s development sectors. “These studies bring much-needed evidence to the table, demonstrating the potential of PPPs to transform our tourism and health sectors,” Prof. Akileng remarked. He emphasized that such research is pivotal to Makerere University’s commitment to producing actionable knowledge that aligns with Uganda’s national development goals.
Prof. Akileng extended his gratitude to the Carnegie Corporation of New York for supporting these projects, acknowledging that their funding was instrumental in advancing impactful research. “The generosity of our donor has enabled us to conduct thorough research and share insights that will inform policy and guide sustainable development efforts in Uganda,” he added.
The workshop encouraged discussion among participants, including policymakers, private sector representatives, and university staff, on the importance of PPPs in creating a resilient service delivery model. Dr. Mugarura highlighted the need for continual assessment of the PPP framework to adapt to evolving economic and social demands. He recommended that the government prioritize regulatory improvements and capacity building for local firms to enhance their role in PPP projects.
The dissemination workshop concluded with a collective call for increased collaboration between the public and private sectors. Both researchers emphasized that strategic partnerships hold the key to addressing Uganda’s service delivery challenges and achieving sustainable growth in tourism and healthcare.
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