M7: Ugandans Good at Goat Rearing not Entrepreneurship
President Yoweri Kaguta Museveni has lashed out to Ugandans who have continued to confuse goat rearing with business noting that if they are to grow their businesses, they ought to resist borrowing from banks and rather form business partnerships.
He made the remarks on Saturday during the ground breaking ceremony of Mega city in Mukono where he stated that Ugandans have hated partnerships and rather embraced borrowing from commercial banks a move he says, has seen most of them chock on debts thus their businesses collapse.
Museveni commended city tycoon Habib Kagimu’s move of bringing in people with equity noting that all Ugandans should borrow a leaf from him arguing that,
“Now that is a smart partnership because Habib Kagimu invited partners with money to use the land to build the estates. The problem with Ugandans is that they confuse looking after goats, cows and chicken with business because they are used to the notion my goats, my cows my chicken my plantation they think you can do the same with business.”
The president added that, “The problem with Ugandans, is that they don’t want partnership, and they want to maintain 100% ownership yet they don’t have savings so they borrow high interest loans which become a burden. Partnership between the local and outsiders who come in with equity and locals come in with land, makes healthier business.”
Museveni also attacked Ugandans who are in the habit of stealing money for their relatives in the Diaspora noting that such ventures will be crucial at eliminating middlemen.
“I would encourage you especially link up with Diaspora, you know Uganda has got a large Diaspora community, those people normally face problems because they send money to their relatives who steal it but if you get a housing unit ready there is a big market among the Diaspora. It would be more convenient for them to buy already constructed houses” cautioned Museveni.
According to Habib Kagimu one of the proprietors of Mega City, the USD 100Million project seeks to establish 1260 apartments on the 12acres. With 87 shops, vocational school to equip the locals with skills, nursery school, hospital, swimming pool, sports complex for all people residing within the satellite city and about 900 jobs to be created.
The satellite city will be implemented in partnership with two Indian based companies Apex Global and R1 Corporation with each apartment going for as low as USD40 and it’s a 5year 2phased project with first phase projected to be complete within 2years, while the second after 5years. Apartments will cost USD40 for one bed roomed apartment, USD55 for two bedrooms and USD75 for 3bedroom apartment.
“We want to give people going to reside here an organised living space and stop filling Kampala with small houses because the city is already fall, which would call for evicting people, we chose Mukono so our people get some breathing space” as explained by Kagimu.
According to the Ministry of Lands, Housing and Urban Planning, Uganda’s housing deficit stands at over 1.6million housing facilities. Yet the annual housing need is placed at 200,000 units of which 135,000 are found in rural areas and 65,000 in the urban areas. Kampala alone has a housing deficit of 100,000 units and while Uganda’s population of 37 million people is growing at 3.3% per year, is projected to increase to 45 million by 2020.
With a rapid rate of urbanization, it is estimated that 20years from now, Uganda will have a housing shortage of close to 8 million units, of which 2.5 million will be in urban centers and 1million in Kampala.
But the high cost of houses in Uganda has been locking out many potential buyers particularly from the low and middle income brackets.