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.
The Public Investment Management (PIM) Centre of Excellence has commenced a three-day refresher training for members of the Development Committee (DC) of the Ministry of Finance, Planning and Economic Development. The training, which began today in Jinja, aims to enhance the analytical and technical skills of committee members who are tasked with reviewing government projects submitted by various Ministries, Departments, and Agencies (MDAs).
The training was today February 19, 2025, officially opened by Dr. Hennery Ssebukeera, who represented the Director of the Budget Directorate. In his opening remarks, Dr. Ssebukeera emphasized the importance of the refresher course in enabling the Development Committee to effectively conduct quality reviews and fulfill its mandate as a key gatekeeper of the Public Investment Plan. He noted that the training would improve the participants’ ability to appraise and implement public investments in line with the Public Investment Management System (PIMS) framework.
Speaking at the same event, Prof. Ibrahim Mike Okumu, representing the Centre Director, Prof. Edward Bbaale, expressed the Centre’s gratitude for the opportunity to contribute to Uganda’s PIM cycle. He highlighted the importance of the training in harmonizing the relationship between the MDAs that draft project proposals and the analysts who review them. Prof. Okumu reiterated the Centre’s commitment to building the capacity of government officials in Public Investment Management, thereby supporting the country’s development aspirations.
The need for this training was identified during the Development Committee retreat held in 2024, which revealed limited capacity among DC members in project appraisal, specifically in reviewing prefeasibility and feasibility reports, Dr Ssebukeera noted. In response, the Ministry of Finance, Planning and Economic Development, in collaboration with the PIM Centre of Excellence, organized this refresher course to strengthen the participants’ technical and analytical skills.
DC is a statutory committee of government that evaluates the viability of public investment projects. Its statutory composition includes: Office of the President, Office of the Prime Minister, Ministry of Finance, Planning and Economic Development, National Planning Authority, Public Procurement and Disposal of Public Assets Authority (PPDA), Office of the Solicitor General, Ministry of Gender Labour and Social Development, National Environment Management Authority, Equal Opportunities Commission, Ministry or Work and Transport, Ministry of Water and Environment, Public Private Partnership Unit. The PIM Center of Excellence was recently admitted to the Development Committee as a non-voting member.
The training will cover a wide range of topics, including the role of PIMS in the country’s development goals, the logical flow of project profiles, costing, and the interpretation of interconnections between prefeasibility/feasibility reports and financial models. Additionally, participants will explore the role of public-private partnerships in national development.
Dr. Ssebukeera encouraged participants to actively engage in discussions, share their expertise, and apply the knowledge gained from the training. He noted that this engagement would empower the Development Committee to effectively perform its role in reviewing and approving public investment projects, ensuring they align with national priorities and deliver value for money.
The Public Investment Management Centre of Excellence, established by the Ministry of Finance, Planning and Economic Development in partnership with Makerere University School of Economics, continues to play a pivotal role in building the capacity of MDAs in managing public investments. To date, the Centre has trained over 300 officers and produced several research papers, reflecting its commitment to enhancing public investment management in Uganda.
The training in Jinja is expected to enhance the participants’ capacity to effectively review government projects, thus supporting the effective implementation of Uganda’s Public Investment Plan.
Business & Management
Somali Officials Complete Executive Training in Infrastructure Asset Management at CoBAMS
Six Somali government officials have successfully completed a three-day Executive Training in Infrastructure Asset Management, held at Makerere University’s Public Investment Management Centre of Excellence (PIM CoE). The training, funded by the United Nations Capital Development Fund (UNCDF), took place from January 27 to 29, 2025, and aimed to enhance regional capacity in infrastructure planning and management.
The training brought together senior civil servants and policymakers from Somalia, equipping them with practical knowledge and strategies for sustainable infrastructure asset management. It also fostered valuable cross-border collaboration, facilitated by UNCDF Uganda, which played a crucial role in connecting Makerere University with the Government of Somalia.
The program was delivered by experienced faculty from Makerere University’s College of Business and Management Sciences (CoBAMS), alongside experts from the Ministry of Finance, Planning and Economic Development (MoFPED) and the Uganda National Roads Authority (UNRA). A special session was also led by the Makerere University Bursar, offering practical insights into financial management in infrastructure projects.
Speaking at the opening of the training, Mr. Ncube Mkhululi, the Regional Technical Advisor for UNCDF emphasized the importance of infrastructure asset management in driving sustainable economic growth. He highlighted UNCDF’s commitment to supporting capacity-building initiatives in developing economies, noting that effective infrastructure planning and management are critical to national development. He also expressed confidence in Makerere University’s expertise in delivering high-impact executive training programs for government officials.
During the closing ceremony, Prof. Bbaale Edward, the Principal of the College of Business and Management Sciences expressed gratitude to all partners, including UNCDF, Makerere University management, and the PIM CoE faculty, for their commitment to making the training a success. He emphasized Makerere University’s ongoing efforts to internationalize its research-led agenda, positioning itself as a hub for regional knowledge exchange.
UNCDF Program Manager, Mr. Joel Mundua, the commended the participants for their dedication and encouraged them to share the acquired knowledge with fellow officials in Somalia. This was reaffirmed by one of the participants, who pledged to apply and disseminate the learnings within their respective departments.
Mr. Sunday Denis Aliti, the Program Officer at UNCDF highlighted the importance of ensuring that infrastructure asset management strategies are practical, adaptable, and aligned with national development goals. He commended Makerere University for its leadership in knowledge transfer and regional training and encouraged continued collaboration between universities, governments, and international development partners to strengthen institutional capacity.
Dr. John Sseruyange, Manager of the PIM CoE, applauded both the participants and the expert trainers who contributed to the program. He reiterated the Centre’s commitment to advancing infrastructure asset management through continued training and collaboration with regional stakeholders.
As the training concluded, participants departed with valuable insights and practical tools to improve infrastructure management in Somalia and beyond. The success of this initiative highlights Makerere University’s role as a leading institution in public investment management, fostering capacity-building efforts that drive sustainable development across Africa.
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