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“Umeme began an initial public offering of a 38.6 percent stake on Oct. 15 at 275 Ugandan shillings (1 U.S. cent) a share. The offer for 622.4 million shares closes Nov. 7 and will be followed by listing on the Uganda Securities Exchange in the capital, Kampala, on Nov. 30. The shares will also list on the Nairobi Securities Exchange after regulatory approval.” bloomberg.com

I have for long followed IPOs and stock markets alas for American based companies, such as Google, Facebook, LinkedIn, since these are at the center of Tech!  Given that many Ugandans are yet to connect to the electricity grid, one sign of a big market, it is good to see Umeme an energy company with a lot of prospects of growth, going through an IPO and trading on  Uganda Securities Exchange.   

Uganda has telecoms among the most profitable and actually the biggest companies. Unfortunately Ugandans have hardly had a chance to invest in such companies as MTN given that MTN Group is listed on the Johannesburg Stock Exchange and not on USE hence making it hard for Ugandans in Uganda to invest in such a profitable group. Nevertheless, I have a dream that one day soon MTN (Uganda) will trade on Uganda Security Exchange!

Apple has a reputation of delivering high quality and pricy products that are hardly affordable by majority of people in the developing world. Now that the first billion Smartphone and Tablet users, is almost covered most of whom are in developed countries, the next billion of Smartphone and Tablet users will be more price conscious. It could be due to that reason that apple has releases  iPad Mini which still at  $329 is costly compared to Amazon Kindle an education product that goes for less than $150.

If Apple iPad Mini is to find more education purposes with the second billion of mobile device user, Apple will need to devise ways of delivering quality at much more reduced price otherwise, the writing is on the wall that Android based devices will become the darling of the second billion of mobile users if prices are not checked for apple devices.

From the west where the mobile revolution started, Telecoms had a way of retaining customers with contracts. This is still the case though fast changing. In Africa, Uganda in particular, we started with people referring to their phone as “My Celtel” at the time when Celtel was the only provider, but this was short lived when other players joined the market. 5-10 years ago a telecom could talk about retaining customers but the market is fast becoming very competitive without a single telecom being the best at all services including voice, data, video and mobile payments.  People are increasing using 3 or more telecom lines which they shift between based on which has a better daily, weekly or monthly packaged to suite the customer needs. The customers are becoming “Polygamous” where it best suits their needs!

There is now very little prospect of any individual telecom fully owning, rather than sharing, the customer and telecoms will increasingly keep losing customer ownership if they do not respond fast to customer’s changing mindset. Operators need to understand and respond to fast-changing customer expectations and behaviors if they are to fight off the competitive threat from other providers. This will require operators to communicate clearly the underlying value of the network and the sources of added value that differentiate their offerings in new service areas. Innovation in the service model could also be used to build brand loyalty in the same way technology players have done. Ernest & Young -Top 10 risks in telecommunications 2012!

The Uganda telecom industry has seen price wars on voice leading to reduction in Average Revenue per User. As this price competition threatened, the telecoms core cash cow, many are searching for services that could replace reducing revenues through voice calls. Data and Mobile Financial Services have come as the lead alternative services and promise to bring in bigger percentage of telecoms revenue.

The generation Y (Young people) that are the biggest population are increasingly using data services and less voice. Many young people will increasingly pay more for data than they would pay for voice more so that Voice over IP option is becoming a reality. The telecoms that will survive the future should start shifting their business model from minutes to bytes.

MTN, Orange, UTL, Warid and Airtel Uganda have all launched data services some offering true 3.75G experience while others offering 2.5G marketed as 3.75G! The market forces will prevail and telecoms that offer good speeds and affordable bytes (not minutes) package will prevail and lead the future.

October, 2012

On October 6th, 2012, British Airways in conjunction with AAR Health Services (U) made a visit to Sanyu Baby’s home where they ministered to the children. Among other items British Airways. donated baby books, diapers, clothes, feeding bottles, tissues, shoes, toys from and AAR provided vaccinations and free health services to the children.

British Airways country Commercial Manager Uganda Faith Chaitezvi said, ‘a One of British Airways objective is to create an impact in the lives of humanbeings. Children are looked at as priority and therefore reason our commitment to Sanyu baby’s home.’

She continued, “British Airways has Sanyu Baby’s home at heart. We are proud to contribute to the home on an annual basis and we know it makes a positive impact in the lives of the little ones and also gives them a sense of belonging.”

Also speaking at the event, Assistant General Manager operations AAR Health services (U) Grace Ssali Kiwanuka said, “Every child deserves a chance at life. Coming to Sanyu babies home from time to time is a way of ensuring that no child is forgotten. In line with our slogan, “your health is our priority, we invest heavily in health a reason as to why whenever we visit, and we provide a pediatric camp.”

Sanyu Baby’s home administrator Barbara Mutagubya, commended British Airways and AAR for their loyal services towards the home. “British Airways and AAR Health services have always fulfilled their commitment to Sanyu Baby’s home. They have kept loyal and provided for the children from time to time. We encourage that other organizations keep coming to give a hand in cleaning, laundry, feeding babies and giving the children company. It makes them feel apart of something.

• 70% work progress on the replacement of the nine culverts between Busembatia and Jinja
• All access roads opened providing additional infrastructure for the community

Kampala: September, 2012. Early this year RVR awarded the tender to repair nine major culverts between Busembatia and Jinja to Multiplex ltd – a Ugandan Engineering company, at a total cost of 5.4 Million dollars (UGX 13.5 Billion shillings). Multiplex has to date achieved 70% of pre casting work for the concrete culverts with a higher hydraulic capacity which will replace the 9 (nine) culverts that currently have worn out Armco steel pipes.

The RVR Board which was meeting in Kampala took time off to visit the Multiplex precast site in Bugolobi to inspect the progress of the culverts construction. At the site, Mr Ngugi Kiuna, the RVR Board Chairman who led the delegation said “we are pleased with the progress being made to replace the 9 culverts between Jinja and Busembatya.

This project is key in increasing the capacity of goods coming into Uganda as well as improving transit times.

The Board later toured the sites where preparatory works for the installation of the 9 culverts is currently ongoing. Replacement work involves opening up of access roads and preparation of coffer dams in addition to pre casting of the concrete pipes.

The board expressed satisfaction with the pace of the phase-one projects in the five year turnaround programme which include; Work on the 365 wagon rehabilitation project through a KFW grant, and overhaul of 8b locomotives that will significantly improve RVRs efficiency.

To date, 70 wagons have been overhauled at the Nalukolongo Railway workshop and work on locomotive overhaul has commenced.

In preparation for the culverts replacement, RVR has also opened up new access roads to the line with one new murram road constructed in Busembatya, connecting Tirinyi road to the Railway Line. These will serve to improve livelihoods in the neighboring communities.

Several months back MTN Uganda run a campaign under the theme that Internet Access is a Human right as declared by the United Nations. MTN offered 10MBs daily free for internet access! Even as on a few days, I did get these 10 MB, on several days I never had the luxury of MTN’s free 10MBs. That bring me to the question, is Internet Access a Right or a Luxury?

One will possibly be hard pressed to find people considering internet access or in Africa mobile broadband access as a luxury. The world has come to a point where heath care, education, commerce are all going to be driven by the internet and thus the world inhabitants that will not have this access will lack healthcare services, education and trade opportunities.

Given the centrality of broadband to economic and social growth, we are hence more inclined to see broadband internet access become a true human right!  Just as H.E the president of Uganda, has no kind words to politicians or individuals that apparently frustrate investment in the Energy and other infrastructure programs, it is my hope that government and the top leadership could have the same view as far as ICT infrastructure and more specifically internet infrastructure is concerned.

HiPipo Team

After seven years of waiting, the people of Kalangala district finally got a new ferry-MV Pearl, plying the Bukakata-Luuku route.

MV Pearl replaces Kalangala ferry that has been operating on the route for 16 years.  MV Pearl uses a maximum of 30 minutes to move between Bukakata and Luuku, 30 minutes faster than the old Ferry. MV Pearl has the capacity to carry 200 passengers and twenty vehicles. It has a maximum load capacity of 120 tons.

The free to use ferry is owned and operated by Kalangala Infrastructure Services (KIS) while the government of Uganda is to pay Shs 5 billion in operational fees each year.

KIS is also expected to launch another Ferry on the same route in the second half of 2013.

KAMPALA, Uganda, September 4, 2012 

The days of counterfeit phones and other fake telecommunications devices in Uganda are numbered. The Uganda Communications Commission (UCC) shall de-link fake phones from connecting to the country’s existing mobile network soon.

Counterfeiting – known as bicupuli in Ugandan speak – means copying an original item, especially consumer products, with the intent of deceiving or defrauding the buyers. Unfortunately, counterfeiting has become so pervasive in Uganda that it includes telecommunication devices such as mobile phone handsets.

The Commission’s action to de-link fake mobile phones from connectivity is provided for under the Communications (Telecommunications and Radio Communications Equipment Type Approval) Regulations, 2005.

As a first step, the Commission has initiated a process to curb the influx of counterfeit phones in Uganda. On September 3, 2012, UCC held a meeting at UCC House Board Room with representatives of Huawei Technologies (U) Co. Ltd, ZTE (U) Ltd, Transtel Ltd and Fone Plus Ltd (Midcom). The latter two are authorised dealers for Samsung and Nokia phone respectively.

In the meeting, Mr Godfrey Mutabazi, the Executive Director of UCC, said fake mobile phones that do not meet the stipulated international standard for products should not be imported into Uganda. “The sudden influx of fake telecommunications devices in Uganda is a serious concern.  These phones are low in quality and do not meet safety standards, and in some situation, the radiation from them is beyond the permissible limits and can cause serious damage to the health of Ugandans,” he said.

Mr Mutabazi said apart from the health hazards that consumers of counterfeit products are exposed to, the bicupuli phones are a threat to the national economy and security.  “During the past few years there has been a categorical rise in mobile users – 17 million Ugandans as of to-date – thereby increasing the demand of various types of mobiles. These phones are usually not subjected to any regulatory authority and thereby not made in conformity to relevant standards and specifications.

Mr Mutabazi said the poor quality of service experienced by some mobile phone users may be due to the quality of their handsets.

The equipment vendors noted that even new models are being faked and sold in the markets as soon as a new original is released. They expressed concern over this bicupuli phenomenon seems to be affecting the prices of their products in Uganda as well as global brands.

Mr Mutabazi said UCC would work closely with other regulatory agencies – such as the Uganda National Bureau of Standards (UNBS), the National Environment Regulatory Authority (NEMA), among others – to fight the influx of fake mobile phones into Uganda. 

Mr Mutabazi advised Ugandan consumers to be cautious when buying a new mobile. “Do not be fooled by the retailer or the seller by a useless fake phone. Check the spelling of the brand name. The name is deliberately misspelled in the fake phones using the same font but a wrong spelling. ‘Nokia’ may be written as ‘Nckia’- where ‘o’ and ‘c’ look very similar,” he said, adding, “Most of these phones do not support English language. These fake phones of the same make and model come in different sizes and shapes. Prices are very low. The prices are unbelievingly low.”

What do you think about this move by UCC , who will be most affected in this operation, the end users , retailers or manufacturers? Share your views in the comments section below.

Kenya’s booming information and communication technology (ICT) sector is attracting more foreign attention from private equity funds which are investing in various ICT opportunities. Savannah Fund and 88mph, have earmarked a total sum of Sh856.8 million ($10.2 million) for various ICT investments.

Savannah Fund will aid early-stage mobile and web-space ICT entrepreneurs (“techpreneurs”) with a seed capital investment of Sh840 million ($10 million) while 88mph has also committed Sh16.8 million ($200,000) to fund Kenyan ICT experts who have ideas that could be transformed into profitable enterprises.

88mph programme manager, Nikolai Barnwell said they have identified outstanding opportunities for commercial mobile and web companies in the ICT market which require risk-willing funding and support.

Mbwana Alliy, a managing partner said “We are backed and supported by local, regional and international networks of angels, venture capitalists whose expertise we can draw on to help start-ups succeed and scale to fully fledged regional or global companies.”

Savannah Fund will target new and already established ICT establishments  through the accelerator and follow-on programmes.

For the accelerator programme, Savannah Fund will finance 25 new creations with about Sh210, 000 ($25,000) each in exchange for 15 per cent equity; while the follow-on initiative will see the equity fund company investing a maximum of Sh42 million ($500,000) in each liquidity – seeking mature business.