Business & Management
Corporate Governance: A Strategy for Business Competitiveness
Renowned Corporate Governance Consultant Japheth Katto has advised businesses to ensure their entities are run on the principles of corporate governance if they are to grow and make profit.
Corporate Governance, he said, is concerned with holding the balance between economic and social goals as well as between individual and communal goals.
Quoting Sir Adrian Cadbury, Katto said the corporate governance framework exists to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society.
Mr. Katto was speaking during a public lecture, organized by the School of Business, Makerere University on Corporate Governance as a Strategy for Business Competitiveness held on April 5, 2023 in the Yusuf Lule Auditorium.
He said good corporate governance is the foundation of any successful business. “In business, it refers to the purpose, people, processes, practices, and policies used to make formal decisions and run the company.”
“Research has shown that better-governed firms have higher stock prices and investors are rushing to buy their shares” Mr. Katto said.
Corporate governance not only applies to big firms but also the small start-ups, Mr Katto shared.
“The high level of informality of most African Economies, which includes Uganda and the role of these businesses that operate informally (SME’s who employ 75% of Ugandans) significantly add to the economic growth of the economy but –
there are no formal ways to enforce and improve their corporate governance since they are not officially captured in the data. Uganda’s 1.1 million SME’s account for 80% of the country’s GDP and 90% of its private sector,” he said.
Mr. Katto shared that corporate governance has some pillars that all firms must abide by. These include;
- Transparency
- Accountability
- Fairness
- Responsibility
- Independence
- Ethical conduct
- Reputation and Reputational risk
All these pillars, Ambassador Damalie Ssali one of the panelists added, must be imbued in the employees of the organization. She underscored the importance of diversity among board members as well as employees. She said diversity will result in innovation among the employees and thus spur competitiveness.
“Your organization should have diversity of skills and gender. Research has shown that companies with gender diversity perform better than those that are male dominated” she added.
To become competitive, businesses were advised to 1. Establish and implement clear policies and procedures 2. Appoint a suitable board of directors (skills, ethics, independence) 3. Implement robust internal controls and trainings, and 4. Be accountable.
Once a company is competitive it stands to gain from access to loans, access to markets, strategic partnerships, talent retention, good will from the public, reporting and accountability and long term sustainability among others.
On the qualities of individuals that companies hire, Mr. Katto said, “We’re looking for three things, generally, in a person: intelligence, energy and integrity. And if they don’t have the last one, don’t even bother with the first two”.
Ms. Cathy Adengo, one of the panelists emphasized that people want to be associated with organizations that have good corporate governance because those will thrive. She advised the students to look to such firms when searching for jobs.
The public lecture was graced by the Vice Chancellor Prof. Barnabas Nawangwe who appreciated the keynote speaker for sparing time to share knowledge with staff, students and members of the public present. He encouraged the students to listen attentively as he too was delighted to listen to Mr. Katto and learn something new on corporate governance.
He thanked the School of Business for organizing the public lecture for it will benefit the students. “They will go out to lead the world better equipped,” he said.
The Vice Chancellor made reference to a newspaper article that cited the Mulwana Empire as being one of the few surviving family businesses in Uganda, which was attributed to its corporate governance. In reference to Makerere, he said the institution also survived the political turmoil of the 1980s due to good corporate governance.
The Dean School of Business, Prof. Godfrey Akileng who represented the Principal of the College of Business and Management Sciences (CoBAMS), Prof. Eria Hisali, also appreciated Mr. Katto and the organisers of the lecture. He challenged the students to ensure they learn something and utilize it to run or start their businesses.
“Corporate governance not only relates to private firms but can be used as a driver in SMEs and public institutions,” he said.
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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