Earth Finds

Earth Finds

Innovations That Are Fueling Uganda’s Development

You only have to look at how Uganda has grown bigger in people, towns and communities to understand the dilemma any business faces when you think of growth and business in the same sentence.

Uganda is witnessing a huge rural to urban migration, while at the same time the rural to peri-urban development seems to be the driving force for decentralized business models and the boldest companies are taking this head-on, and in the process getting pleasantly surprised at the benefits to this gamble they’ve taken.

With Uganda now actively pursuing an ambitious plan to become middle-income country in less than five years, the significance of a fairer distribution of basic services cannot be overstated. And with that comes the role of the private sector, in a market economy like Uganda’s.

For a lot of businesses, the bold defining step to out of the centre (Capital City) has been one fraught with indecision and often lacklustre execution. This has largely left people who are not at the centre unable to experience certain events, activities and benefits, promotions, and services.

You get the feeling that there has to be a deliberate private-sector led initiative to extend services beyond the major cities and urban centers.

The energy sector has, over the years, led the initiative, with Shell – the country’s leading Petroleum and gas company – constantly delivering very essential servicesto customers in virtually any part of the country. They seem to have understood the simple fact that their core customers travel everywhere, and need services from time to time, irrespective of their distance from the Capital City. This spirit virtually delivers real economic transformation and play into government’s ambitions if it was to be adopted by more companies.

Playing ahead of the curve, Shell has taken this depth a notch higher and developed a one-stop solution to the customer in various out-of-town locations, with an aim of potentially being able to tap into behavior patterns of customers.

It is a big gamble given the fact that as much as you have a rural to urban migration the motivations are not necessarily around luxury, rather essentials that are basic, everyday and life or death.

As Economist Rukundo Nshakira notes, “company expansion shows that there is increase in disposable incomes and consumption within the company. However, there is need for careful studies on purchasing power in the population.

Expansion means that the company sinks so much of its capital into fixed asset and expect to recoup this investment as years go by. If the purchasing power is low, then the company may struggle to recover these investments.”

“With the current somewhat volatile macroeconomic conditions, any company adopting an expansive business strategy would be exhibiting remarkable confidence in the country,” Rukundo observed.

Interestingly, this was a sentiment expressed by Shell’s Group Chief ExecutiveOfficerChristian Chammas in reaffirming why the company is extending certain services to Jinja.

Chammas was quite adamant that Uganda should be grateful because they are growing at a rate faster than their peers in the developed economies. “The growth rate is healthy, solid and provides a good basis for what in Uganda one would call incremental development,” he said.

He added: “Our aim is to provide an exceptional retail experience at each of our sites, reaching more people with better products and services wherever we do business. We are investing significantly to make this ambition a reality.”

The bottom-up development then helps feed the societal ecosystem through consumption provided by companies across the spectrum looking to grow.

A company can now see opportunity in a small, urban town in the East or North, can now take the step to have some presence, enough to influence consumer behavior.

It means decentralized investment outside Kampala is not the preserve of a Coca-Cola or a Movit. Shell has is taking a bold step forward to ensure depth of service, thereby becoming a centre of gravity for everyday consumer needs, whether food, finance, medicine and whatnot. It is a kind of fuel for development.

Innovations That Are Fueling Uganda’s Development

You only have to look at how Uganda has grown bigger in people, towns and communities to understand the dilemma any business faces when you think of growth and business in the same sentence.

Uganda is witnessing a huge rural to urban migration, while at the same time the rural to peri-urban development seems to be the driving force for decentralized business models and the boldest companies are taking this head-on, and in the process getting pleasantly surprised at the benefits to this gamble they’ve taken.

With Uganda now actively pursuing an ambitious plan to become middle-income country in less than five years, the significance of a fairer distribution of basic services cannot be overstated. And with that comes the role of the private sector, in a market economy like Uganda’s.

For a lot of businesses, the bold defining step to out of the centre (Capital City) has been one fraught with indecision and often lacklustre execution. This has largely left people who are not at the centre unable to experience certain events, activities and benefits, promotions, and services.

You get the feeling that there has to be a deliberate private-sector led initiative to extend services beyond the major cities and urban centers.

The energy sector has, over the years, led the initiative, with Shell – the country’s leading Petroleum and gas company – constantly delivering very essential servicesto customers in virtually any part of the country. They seem to have understood the simple fact that their core customers travel everywhere, and need services from time to time, irrespective of their distance from the Capital City. This spirit virtually delivers real economic transformation and play into government’s ambitions if it was to be adopted by more companies.

Playing ahead of the curve, Shell has taken this depth a notch higher and developed a one-stop solution to the customer in various out-of-town locations, with an aim of potentially being able to tap into behavior patterns of customers.

It is a big gamble given the fact that as much as you have a rural to urban migration the motivations are not necessarily around luxury, rather essentials that are basic, everyday and life or death.

As Economist Rukundo Nshakira notes, “company expansion shows that there is increase in disposable incomes and consumption within the company. However, there is need for careful studies on purchasing power in the population.

Expansion means that the company sinks so much of its capital into fixed asset and expect to recoup this investment as years go by. If the purchasing power is low, then the company may struggle to recover these investments.”

“With the current somewhat volatile macroeconomic conditions, any company adopting an expansive business strategy would be exhibiting remarkable confidence in the country,” Rukundo observed.

Interestingly, this was a sentiment expressed by Shell’s Group Chief ExecutiveOfficerChristian Chammas in reaffirming why the company is extending certain services to Jinja.

Chammas was quite adamant that Uganda should be grateful because they are growing at a rate faster than their peers in the developed economies. “The growth rate is healthy, solid and provides a good basis for what in Uganda one would call incremental development,” he said.

He added: “Our aim is to provide an exceptional retail experience at each of our sites, reaching more people with better products and services wherever we do business. We are investing significantly to make this ambition a reality.”

The bottom-up development then helps feed the societal ecosystem through consumption provided by companies across the spectrum looking to grow.

A company can now see opportunity in a small, urban town in the East or North, can now take the step to have some presence, enough to influence consumer behavior.

It means decentralized investment outside Kampala is not the preserve of a Coca-Cola or a Movit. Shell has is taking a bold step forward to ensure depth of service, thereby becoming a centre of gravity for everyday consumer needs, whether food, finance, medicine and whatnot. It is a kind of fuel for development.

CNOOC Uganda Announces Sponsorship Of Bunyoro Amasaza Cup 2016

CNOOC Uganda Limited, an oil and gas company, announced its sponsorship of Ushs87m ($25,000) towards the Bunyoro Amasaza Cup 2016. This marks five years of the oil company’s support towards the tournamentwhich attracts various counties in Bunyoro Kitara Kingdom.

The month-long tournament will attract seven districts in the Bunyoro Kitara Kingdom including Kagadi, Kakumiro, Kiryandongo, Bulliisa, Hoima, Masindi and Kibaale. The announcement was made at a press conference graced by His Royal Majesty the King of Bunyoro Kitara Kingdom; Dr. Solomon Gafabusa Iguru in Kagadi district.

Speaking at the press conference, Aminah Bukenya,Public relations Supervisor, CNOOC Uganda Limited, stated that CNOOC Uganda was honored to be part of the Amasaza Cup for the fifth year. “As we carry out our core activities in the Bunyoro region, it is important for us to engage withthe residents, embrace their culture, and contribute to their community, as a sign of appreciation for their supportto our Company and employees.”

“When we began operations in Bunyoro, we made a commitment to be part of all-round growth in our area of operation. And over the years, we have seen this commitment come to life through various local programs.”

“Sponsoring the Bunyoro Amasaza Cup for the fifth year is a demonstration of CNOOC Uganda’s dedication to the growth of sport in this region. Last year, the tournament was played across all sub counties in Bunyoro Kitara Kingdom and attracted 13 counties. This year, we hope for even greater participation and competitiveness among the counties.”

Emphasizing CNOOC Uganda’s dedication to various efforts, Aminah Bukenyanoted that the Company has supported the education and health sectors both in Hoima and the rest of the country.

“On behalf of the people of Bunyoro Kitara Kingdom, I would like to thank the management of CNOOC Uganda for their continued contributions tothis region. The Amasaza Cup tournament has continued to promote unity among the Banyoro and this has, in turn, further strengthened our kingdom cultures,” commented His Royal Majesty the King of Bunyoro Kitara Kingdom; Dr. Solomon Gafabusa Iguru.

“We are happy with CNOOC’s support which has boosted talent and sports in Bunyoro Kingdom. We always look forward to the Amasaza Cup tournament.” said Tumusiime Vincent, a player from Buyaga East, Kagadi District.

Developing Countries To Benefit From IRENA $50m Renewable Energy Funding

The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have officially opened the fifth round of funding for renewable energy projects in developing countries. The funding round of approximately USD 50 million is part of ADFD’s USD 350 million (AED 1.285 billion) commitment offering concessional loans to renewable energy projects endorsed by IRENA.

Since 2012, the IRENA/ADFD Project Facility has enabled USD 333 million in loans to 15 renewable energy projects in 14 developing countries. Selected projects thus far have included off-grid, mini-grid and on-grid projects using wind, solar, hydro, geothermal and biomass sources. Thanks to the first three cycles, more than 68 megawatts of renewable energy capacity will be brought online, improving the livelihoods of 760,000 people.

“Many developing countries are blessed with abundant renewable energy resources, yet access to financing can still hinder development,” said IRENA Director-General Adnan Z. Amin. “IRENA’s partnership with ADFD helps overcome this challenge by offering concessional loans to quality renewable energy projects in developing countries, which then leverage additional investment. Funding from the Facility helps boost renewable energy deployment and trigger economic growth, offering sustainable and affordable energy to people with limited or no access to electricity.”

His Excellency Mohammed Saif Al Suwaidi, Director-General of ADFD added, “The IRENA/ADFD Project Facility is a pioneering partnership that supports the developing world’s energy needs by tapping into their abundant renewable energy sources. Selected projects have the potential to improve the livelihoods of millions of people by facilitating sustainable economic growth, bolstering energy security and expanding energy access.

This collaboration with IRENA exemplifies our core business of partnerships and alliances to drive advancements in all key economy sectors, especially the renewable energy sector, which will guarantee a long-term, sustainable and environmentally conscious future. At ADFD, our aim is to provide governments with the financial resources and instruments to achieve their desired development goals and ensure a secure future for their citizens.”

Through the Facility, ADFD provides consessional loans ranging from USD 5 million to USD 15 million per project. Finance is offered at 1 to 2 per cent lending rates with a 20-year loan period, including a 5-year grace period. Loans for each project cover up to half of the estimated project cost so additional co-financing must be acquired from other sources. To help facilitate additional sources of funding, project developers can register and seek financing sources from IRENA’s Sustainable Energy Marketplace.

Only projects located in IRENA Member States, Signatories of the Statute, or States in Accession are eligible to apply. Applications are evaluated by an international panel of experts who review the projects based on technical feasibility, economic/commercial viability and socio-economic and environmental benefits.

The deadline for applications for the fifth cycle is 15 February, 2017. Results will be announced in January 2018.

 

  • Published in Energy
  • 0
Subscribe to this RSS feed

26°C

Kampala

Mostly Cloudy

Humidity: 74%

Wind: 22.53 km/h

  • 24 Mar 2016 28°C 22°C
  • 25 Mar 2016 28°C 21°C