By: Ritah Namisango

Dr. Elizabeth Patricia Nansubuga, Chairperson of the Makerere University Retirement Benefits Scheme (MURBS) Board of Trustees, announced this milestone during the 14th Annual General Meeting (AGM) for the year 2023/24 held on Thursday, 24th October 2024, at Makerere University Main Campus, School of Public Health Auditorium.

The AGM attracted various stakeholders, including trustees, Audit Committee Chairperson CPA David Ssenoga, Board Evaluation Consultant Vincent Kaheeru, URBRA Representative Mark Lotukei, Audit Committee members, co-opted members, and university administrators.

Presenting the performance report, on behalf of the Board of Trustees, Dr. Nansubuga highlighted that this is the highest interest declared by the scheme in the past five years, and she anticipates continued improvements. She noted that for the previous financial year, which ended in June 2023, the Board of Trustees declared an interest an interest of 12.34%.

Dr Nansubuga also announced that the scheme has achieved a Net Investment Income of UGX 44.6 billion, far higher than the UGX34.4 billion collected in Contributions during the year.

The Chairperson of the Board also revealed that the fund value had grown from UGX352.4 billion recorded at the end of the last financial year to UGX409.2 billion, indicating an increase of 16.1%.

“By 30^th June 2023, MURBS had a fund value of UGX 352.4 billion. The Board of Trustees targeted Fund growth of 17%, and I am glad to inform you, that the fund value of MURBS, as per the Audited Financial Statements of 30^th June 2024 is UGX 409.2 billion, which is an increase of 16.1%. This achievement was made possible by strategic periodical activities undertaken by the Board and our fund managers, supported by the strong oversight committees of the Board,” she reported.

She attributed the positive growth to factors such as improved debt recovery, operational efficiency, timely remittance of contributions by the sponsor (Makerere University), an increase in project and contract contributions, and the recovery of UGX8.85 billion in debts.

Dr. Nansubuga also expressed gratitude to Makerere University, the scheme’s sponsor, for consistently remitting contributions, a key factor that has significantly contributed to MURBS’ smooth operation. “I am happy to announce that the sponsor-Makerere University remitted your retirement benefits for the financial year 2023/24,” she said.

In the same development, Dr. Nansubuga reported that MURBS registered a legal victory against Uganda Revenue Authority (URA) over a real estate investment in Sonde undertaken in 2019, and which URA sought to tax heavily. She notified the AGM that MURBS won the case and was awarded costs which also set a precedent.

“On behalf of the Board of Trustees, I am pleased to inform you that during the financial year, we received a favorable outcome on a key court case. How did we end up with this case? In 2019, MURBS invested in real estate, we bought land in Sonde,” Dr Nansubuga explained.

“Uganda Revenue Authority (URA) then charged us with a tax assessment worth UGX600 million. It has been four (4) years in the tax appeals tribunal. Since then, the lawyers, the former and current trustees, have been appearing before the appeals tribunal, but in December 2023, MURBS won the case. We challenged URA, and this case was awarded with costs. URA has to pay MURBS. We therefore saved UGX600 million,” she added.  

In terms of governance, Dr Nansubuga said that the scheme made changes in the board. Initially, the trustees were six and they needed a seventh member, and following a competitive race, they recruited another trustee; CPA Edina Rugumayo who has over thirty years in accounting.

“In terms of governance, we continue to uphold good governance practices and we align with international standards. Last year during the presentation, I said we were six and we needed to have the seventh trustee because the Board composition is supposed to be seven,” she explained.

“So, following a competitive process, we recruited an independent trustee. It was a very competitive position. You must have served on board which has over UGX50 billion. So, from that process, we were able to recruit CPA Edna Rugumayo Simbwa. She is a certified public accountant with over thirty years of experience in accounting, taxation, and corporate governance,” she mentioned.

She also thanked other stakeholders for making sure that MURBS activities run smoothly. These entities include Makerere University, KPMG, Gen Africa, Arcadia Advocates, Zamara, URBRA, and Stanbic Bank among others.

While discussing investments, Dr. Nansubuga mentioned that 86% of MURBS’ funds are currently invested in government bonds, but added that the Board is exploring diversification to reduce risks. 

“86% percent of our money is invested in government bonds, and sometimes, you do not have to put all your eggs in one basket, there is a high concentration of risk. so that is one of the key material risks that we want to address to reduce the amount we have in government securities. We want to diversify our portfolio and avoid investing heavily in government securities. The Board will venture into other fields in order to earn money or return on investment from the diverse undertakings,” she said.

In terms of membership, Dr. Nansubuga reported a 4.4% increase, with the number of members rising from 8,229 to 8,590. She attributed this growth to the reinstatement of in-house beneficiaries and an increase in project and contract staff.

Dr. Kakuba also thanked the sponsor-Makerere University for remitting the membership contributions timely which has helped the scheme to grow.

Dr. Godwin Kakuba -Secretary, MURBS Board of Trustees, who presented the record of the 13^th Annual General Meeting stressed that the AGM climaxes a financial year and the Board of Trustee has been vigilant on this and has not missed any AGM for 14 years now.

“We applaud the sponsor because many of these positives in the chairperson’s report can only be attributed to the support by the sponsor through fulfilling the obligation of remitting members’ contributions to the scheme,” he added.

Partner Asad Ssenoga, an independent auditor who audited the scheme said that he was impressed with the level of compliance that the scheme exhibited in all aspects. He said they focused on ensuring that the member contributions are supported with statements and allocated to members appropriately.

“Overall we were satisfied with the work we did on the audit, the numbers that were presented by the Chairperson are the correct numbers that we audited. We were comfortable with those numbers, due process was followed during the audit,” he said.

Mr. Mark Lotukei who represented the CEO of Uganda Retirement Benefits Regulatory Authority (URBRA) thanked the Trustees for always prioritizing governance, which has helped them to reach several milestones.

“As URBRA, we look at governance as the biggest component of our compliance. MURBS Trustees from the former to the current, have taken governance as the most important aspect. We really encourage them to continue with this good practice because governance informs all the other aspects,” he said.

Mr. Arthur Kibira, a member in attendance, expressed his appreciation for the Board’s efforts. He urged them to explore higher-risk investments for potentially greater returns. He expressed concern over the scheme’s heavy reliance on government bonds.

“Dr Elizabeth Nansubuga, I want to congratulate you, and your team and also congratulate ourselves. But, I want to believe that there is room for improvement. I am one of those who do not believe that the sky is the limit, we are limited by our own thinking. I am thinking that high risks give high returns. Is there a way of managing those risks, so that we could push this 13.40% interest to a figure much higher? If we do so, we shall say we have learnt how to manage risks,”, he guided.

Hoima and Kikuube Districts, Uganda – October 20, 2024

A group of third-year students from College of Business and Management Sciences’s Energy and Natural Resources Economics program visited the Kingfisher oil operations and Kabalega Airport in Hoima and Kikuube districts on October 20, 2024. Led by Dr. Peter Babyenda and Dr. John Sseruyange, and with authorization from the Petroleum Authority of Uganda, the visit offered the students an invaluable opportunity to connect classroom learning with field experience.

The primary objective of the field trip was to enhance students’ practical understanding of Uganda’s oil industry by observing the extraction and production processes firsthand. According to Dr. Babyenda, “Blending theory with real-world exposure is essential for these students, as it allows them to apply and expand their knowledge beyond the classroom.”

During the tour, students explored several key areas:

1. Practical Exposure – Witnessing the operational procedures of oil extraction offered students a concrete understanding of how theoretical concepts play out in the field, enhancing their grasp of the industry.
2. Economic Impact Analysis – Observing the economic role of oil production in Hoima and Kikuube allowed the students to explore its broader impact on local and global markets and its contributions to community development and Uganda’s economic landscape.
3. Technical Knowledge – The students gained insights into the technical aspects of oil extraction, learning about the complexities of the operations, the innovations employed, and the challenges faced by the industry.
4. Environmental and Social Considerations – Students observed the environmental practices in place and evaluated the social dynamics involved, gaining an understanding of how oil companies balance production with community and environmental sustainability.
5. Career Insights – With opportunities to interact with professionals in the oil sector, students received guidance on potential career paths in the industry, helping them make informed decisions about their futures.
6. Current Industry Issues – The group also delved into the status of the East African Crude Oil Pipeline (EACOP) project and discussed challenges in oil and natural gas production, examining where Uganda stands in terms of production timelines, obstacles, solutions, and the role they can play as future energy professionals.

Reflecting on the trip, Dr. Sseruyange highlighted the importance of this experience in solidifying students’ understanding of Uganda’s evolving oil industry. “This field experience not only complements what they’ve learned in lectures but also equips them with a real sense of the operational and societal impact of the energy sector,”he noted.

The students expressed their gratitude for the immersive experience, noting how it broadened their perspectives and deepened their knowledge. The field trip served as an essential step in preparing them for careers within Uganda’s energy and natural resources sectors, bringing them closer to the industry’s forefront and the future of sustainable energy in the region.

In an effort to combat rising poverty and unemployment among youth, at least 400 students from four Universal Secondary Education (USE) schools have been equipped with entrepreneurial skills aimed at transforming their lives through income-generating projects. The initiative, led by a group of scholars from the College of Education and External Studies (CEES), seeks to provide practical solutions to poverty by fostering self-reliance among young people.

The training targets students, many of whom may not advance beyond senior four. “A majority of these students come from underprivileged backgrounds, making them an ideal group for this intervention,” explained Dr. Badru Musisi, the project’s lead investigator. Research informed this approach, highlighting that students from USE schools often face socioeconomic challenges that limit their educational and employment prospects.

The participating students, from Mityana SS, Nakanyonyi SS, Lweru SS, and Bombo Secondary School, underwent a 12-week intensive training program that was designed not only to teach them how to start a business but also how to sustain it. The first cohort, trained in 2021/2022, came from Mityana SS and Nakanyonyi SS, while Lweru SS and Bombo Secondary School followed in 2023/2024.

The project, dubbed “Imparting Entrepreneurship Skills in Universal Secondary Education Schools through Student Training for Entrepreneurial Promotion,” was spearheaded by Dr. Musisi and Dr. Rebecca Nambi, lecturers at Makerere University. It is funded by the Government of Uganda through the Makerere University Research and Innovation Fund (MakRIF).

Bridging the Skills Gap

Unlike traditional government skilling programs that primarily focus on hard skills such as tailoring and plumbing, this project emphasizes soft skills, psychological preparedness, and business management techniques. Dr. Musisi stressed the importance of preparing young people mentally for the challenges of entrepreneurship, explaining, “Many youths are trained and given tools, but they end up selling them because they aren’t psychologically prepared for business.”

The project provides a holistic approach by combining psychology, entrepreneurship, and business administration. Students learn how to manage failure, identify viable business opportunities, and navigate the ups and downs of running a business. Those who lose their capital are guided to reflect on their mistakes and find ways to avoid them in the future.

Real-life Business Ventures

One key aspect of the training was providing students with startup capital—each group of five students received UGX 300,000. These groups were tasked with identifying and starting micro-businesses within their local communities. The results were promising: even those who initially struggled managed to recover. Dr. Musisi recounted the story of a group that, after losing much of their capital, pivoted to selling jackfruits in their community and soon turned a profit of UGX 400,000.

For many of the participants, the training has had a lasting impact. Senior three student Faizo Jjingo from Bombo SS used the marketing skills he learned to start his own juice business, which now helps him meet his basic needs. Another student, Christine Nayiga from Lweru SS, ventured into poultry farming and is now committed to expanding her business to serve her local community.

A Model for Wider Implementation

The project, which has so far received UGX 300 million in funding, is currently limited to the central region of Uganda. However, the scholars hope that with more government support, it can be scaled to other parts of the country. The success of the initiative has led students, such as Issa Nsubuga from Lweru SS, to advocate for its expansion to reach local communities and skill up school dropouts.

Ms. Juliet Nabirye, representing MakRIF, expressed the fund’s commitment to supporting young people with innovative ideas. She encouraged students to apply their skills and brand their products to stand out in the competitive market. “Identify challenges in your community and create solutions for them,” she advised.

Challenges and Future Prospects

Despite the program’s success, challenges remain. Some schools have expressed concerns about students’ businesses interfering with their studies, fearing that too much focus on entrepreneurship could detract from academic performance. “It can disrupt school programs if students shift their focus entirely to their businesses,” warned a school official.

However, educators like Mr. Hamza Ssebunya, head teacher of Lweru SS, believe that the initiative is vital in shaping a more self-reliant generation. He emphasized that students now understand how to start small businesses like chapati making and vegetable growing, empowering them to earn money even while in school.

As Uganda faces an ongoing youth unemployment crisis—with an estimated 64% of young people out of work—initiatives like the Student Training for Entrepreneurial Promotion (STEP) project offer a glimmer of hope. Dr. David Kabugo, Deputy Director of Makerere University Institute of Teacher Education and Research (MITER), believes that projects like this are essential in addressing unemployment by giving youth the tools to create their own opportunities.

In the words of retired head teacher Mr. Muhammad Bisaso Ntamu, “Real education should encompass knowledge, skills, and values. This project has achieved 70% of what real education should provide.”