let’s all become venture capitalists in our small ways


LAST week a young man called Gimei Nagimesi shared an amusing tale that tickled my hopes.

This young man is the type who always stays in the background doing groundbreaking things. I know, for instance, that he was instrumental in the creation of the ‘Golola Moses’ brand and all those statements around ripping pages out of Facebook and hanging clothes on telephone lines.

His story last week had far less of a celebrity factor. He confessed that he is the type of person who can’t walk past a volleyball court, and so during a health run along the northern by-pass one day he got stuck playing his favourite game.

Before long he was a permanent fixture on that court and being the only urban professional on the court, Gimei found himself buying rounds of drinking water and kabalagala every so often from the cycling vendors that went by the court at a certain hour every evening. It became obvious that this event was a highlight of the day and Gimei suspected that some of them turned up to play purely for that kabalagala break.

Total cost of feeding the entire court per day? Less than ten thousand shillings (Ushs10,000).

He then began to look into the other permanent fixtures on court, and as he was doing so, one of them caught his attention for being keen and earnest.

The young man in question opened up to Gimei and told him he was generally broke but played every day to expose himself to opportunities. He then proposed that Gimei funds him with Ushs1.4million so he could get going.

What’s the business?

“Counter Books.”

counter-books-250x250
From indiamart.com, NOT Uganda

Gimei found the figure intriguing, and the response even more so, and probed further till the young man outlined his plan.

Where he lives, in the swamps somewhere off the northern by-pass, there are many school-going children who use each buy a book at the start of each school term. Annoyingly, the nearest source of stationary is somewhere in Ntinda, which involves some kilometres of walking.

The young man therefore wanted to make Counter Books and sell them to the many schoolchildren in his neighbourhood, and believed a profit could be made.

Gimei gave it a brief thought and figured that it made sense. Besides, to him Ushs1.4million was not such a massive amount of money so…he invested.

The young man took up the cash and embarked on the job with gusto NOT just buying books to re-sell, but buying reams of paper, glue, hard covers, and other materials; then spending hours making Counter Books himself, which he then sold out of his home.

Profit? Ushs500,000 in total.

Gimei was nonplussed when the young fellow showed up out of the swamps to hand over his 50% of the profits, a few weeks later. They’ve continued the cycle, unless some bureaucracy steps up to investigate, in which case it ended.

But not before another young fellow approached him and asked, in Luganda, whether if ‘someone’ funded him (this new young fellow) he couldn’t set up a kaveera water business of his own right there at the court for the players, so that they buy from him instead of buying from the cyclist going past.

Gimei now finds himself to be a venture capitalist of sorts, and the experience is enjoyably uplifting.

investopedia.com defines a Venture Capitalist as “an investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.”

In developed economies venture capitalists are a serious factor of economic growth, because they are willing to invest in these small ventures that formal financing doesn’t trust or finds awkward.

In the United States, companies like Intel, Fedex, Apple, Google, and Microsoft started off with venture capital funding, and are now global giants. Their ideas, when they kicked off, seemed crazy or wild or simply untenable because they were different from what leading organisations like banks and financial analysts generally knew.

No bank or government agency would fund Gimei’s young Counter Book manufacturing friend, for instance, but Gimei now has the fellow earning a respectable income, while earning a profit of his own, and possibly also thinking about going to other parts of the swamp to do the same and multiply his earnings.

Besides just financing, though, venture capitalists also provide mentorship – which is probably the most important element in entrepreneurship, and what the boys at the volleyball court take from Gimei more significantly than kabalagala. See, anybody can get financing, in a manner of speaking, but the attitude and aptitude to run an enterprise are a different matter altogether.

Plus, venture capitalist funded companies and enterprises tend to introduce new solutions that regular businesses wouldn’t dare touch. That’s why we more of us use Apple products than Texas Instruments (I had a TI calculator back in the 1980s that was all the rage then!)

Venture capitalists also experience major losses when their picks fail, but these investors are typically wealthy enough that they can afford to take the risks associated with funding young, unproven companies that appear to have a great idea and a great management team – as Gimei would have exhibited if the young man hadn’t turned a neat profit.

The problem of youth unemployment keeps getting talked about with reference to government intervention and ‘support’, yet we all have the opportunity to make some market corrections and build the economy by being venture capitalists in some small way.

If we had as many entrepreneurship meetings as we do wedding, graduation and funeral fund raising meetings, I am certain things would be different. If we had gatherings at which we threw around entrepreneurship advice and funding rather than suggestions of which caterer to procure or what colour the cake should be, just imagine how many more jobs would be created in this economy.

We probably collect a hundred million shillings weekly for weddings, funerals and graduation parties, which certainly supports a certain segment of the economy, but Gimei’s story made me think more of what could happen if we collected that money to fund ventures instead.

A couple of Stanford University scholars did a study on the impact of venture capitalists on the US economy and found it to be large. Between 1979 and 2013, more than 2,600 venture capital-backed companies went public (onto the stock exchange there).

Compare that to Uganda where the Uganda Securities Exchange holds eight (8) companies – if you and I funded up a few earnest, hungry young fellows, maybe our companies might join the lonely eight on the Stock Exchange one day?

Uganda! we can still reap large from the sowing of the barcelona legends last year


LAST year we talked excitedly, some of us, about the Barcelona Legends soccer team coming to Uganda to play an exhibition game, and we actually pulled it off as a country!
There was a little hitch in the beginning but we (the country Uganda) quickly overcame it thanks to there being more good Ugandans than bad ones, and by December we were registering success.
The Legends played at Nambole Stadium against the Uganda Cranes AllStars – a team specially built for that charity match – and got thrashed 5-3 in a thrilling game that gave us legend Patrick Kluivert scoring a magnificent goal shot from nearby the halfway line.
The goal was so classy that goal.com featured it under the headline, ‘Move Over Messi; Kluivert Scores The Goal Of The Season!’
They left after a week, and that seemed to be it. Some people complained a little on social media platforms and called the arrangement a rip off because of who the Legends were – since they expected a game with Barcelona FC, and others said the President and Uganda Tourism Board had wasted money having offered to fund the exhibition game.
The complaints came from people who were not appraised about the reason for the Barcelona Legends game.
See, during their time here the Barcelona Legends went gorilla tracking and visited a couple of other tourism hotspots, as well as Kampala’s very lively night scene; and they interacted with many of our children under a programme with UNICEF, as well as through a scouting initiative.
All the while, they were tweeting their experiences, and getting coverage in the international media, and updating their Facebook pages – official and personal – with

Barcelona-legends-in-Bwindi-Forest
Photo: http://www.showbizuganda.com

details about this fantastic place with its magnificent tourism offerings and great, hospitable, generous, talented people.

All thanks to Tourism’s Amos Wekesa and Basketball’s Ambrose Tashobya, the two fellows who put their backs and elbows into ensuring the Legends’ plan went through, so that we reap benefits as a country.
The charity game, aka exhibition match, was just that; staged for various reasons: 1. To enable Uganda to showcase our good tourism offerings through celebrities who have a large global following; 2. To give us a platform for our soccer talent to show itself – as it did that week and on game day itself; 3. To create positive talking points around Uganda, rather than the usual negative kaboozi we sometimes like to attract and portray; 4. To open the minds of the large following of Barcelona FC to Uganda, and therefore the minds of anyone who even googles Barcelona since their results would show up the word Uganda at some point in time.
Kluivert’s goal was a major bonus for us; he tweeted a video of his goal on December 14, 2015 to his 790,000 followers and it was re-tweeted 5,096 times and got 4,227 likes within a short while. Among the people who commented was Luis Garcia with his 270,000 followers (then) watching. The video itself, by now, must have garnered more than 10million views – all saying “Uganda” in positive light.
Think about this: that goal and even the game being talked about on goal.com and other such websites gave all the Ugandan soccer players in that game visibility on the world’s premier online soccer platforms – which many of them don’t enjoy every day.
FC Barcelona (@FCBarcelona) has 17million followers, most of whom saw these tweets from their former players, the Legends, just as each of the major Legends’ millions of followers.
Not only that, though – Amos Wekesa, because of his intimate involvement in getting the Barcelona Legends game under way, has been off to Barcelona to push the ‘Visit Uganda for tourism’ agenda with such success that in a few weeks time you will be hearing more

Barcelona Legends in Uganda
From L-R: Ambrose Tashobya, Rayco Garcia, Edgar Davids & Amos Wekesa at the Sheraton Kampala Hotel. (Photo: http://www.safari-uganda.com)

 

about an airline called Air Europa (I won’t spoil that story by telling it prematurely), owned by Jose Jose ‘Pepe’ Hidalgo.

All this is coming to me now because the official fifteen-minute video of the Barcelona Legends visit to Uganda is finally ready for airing. It is not a video for us to gawk over here in Uganda, no. It is a video that will promote Uganda. It contains footage of the Legends enjoying themselves in this country, for anyone watching it to imagine themselves doing just that over here.
And, I have been told, the video is going to be aired soon on Barcelona TV, which has about 400million viewers worldwide, and to television stations in all Spanish speaking countries worldwide which could mean 800million viewers (probably NOT counting the United States). Besides those two, the video is also going to be aired on the French and Dutch national televisions under arrangements made by the promoters of individual Barcelona Legend players.
On top of that, the reason the promoters of the charity exhibition game undertook the venture was to set up a footballing academy here to take Ugandan players onto the bigger global stage and to give Ugandan coaches a higher level of exposure. You might have seen mention in the papers of one Geoffrey ‘Baba’ Kizito being snapped up by the Spanish team Malaga?
There is more to come.
Which is why I am changing focus this week, and hoping my compatriots do the same and wake up out of our slumber. We need to learn a bit of Spanish now, so that we make use of the opportunities being opened up by the Barcelona Legends; we need to get in touch with agents in Spain and make contacts with potential counterparts there so we absorb the tourists and businesspeople bound to take an interest in this part of the world, now that a window has been opened up.
We need to study Spain and find out what they like so that we can give it to them over here. If the Spanish like their food rich and creamy, then we need to set up menu options in specific (or ALL) restaurants for those who might make the decision to come to Uganda.
If they like dancing a certain type of dance and cannot do without it, then let’s open up those dancing rooms for them so they are not too homesick when they visit.
Actually, start with the basics and someone set up a website or a series of guide books with translations from Spanish to our local Ugandan dialects – if even 1% of all the numbers quoted above actually board a plane to Uganda (aboard Air Europa?) you will be assured of good sales!
Eventually, we will forgive the Prime Minister of Spain for his “Spain is not Uganda” comment if he contributes to his nationals coming here as tourists or businesspeople buying up our processed goods to sell in Spain and beyond, and we do enough to receive them for a neat profit.

two journeys, one path – different destinations


TAKING a walk through Mutungo for health reasons – exercise, I must declare – I found myself at the top of a road I had ignored countless times before, and ventured down its lead.
The short walk was uneventful besides the number of people I had to prompt into responding with “Good evening!” as I walked past grey and brown walls shielding what appeared to be regular residential houses with regular grass gardens.
Then, quite suddenly, the grey and brown was broken by a burst of thick shrubbery. I believe my breathing changed before my mind had fully taken in what my eyes were seeing. The thick hedge ran for a regular distance but I slowed down my paces to take it all in, and to peer through it out of curiosity.
There was much more behind it than just grass and a house; the flowers and shrubs were not rare and in some cases not in bloom, but it was interesting to observe. So interesting, actually, that when I got to the gate and found it was wide open I took that as an invite.
Inside, the neat garden exceeded my expectations, as it came with many pots and plants,img_20160121_170250.jpg all of them obviously made (the pots) and nurtured (the plants) within the perimeter fencing. The house was obviously old, probably built when my grandparents were youths, but it was well kept. Against the front of the house, someone had carefully fashioned an archway of flowering shrubs that arrested my attention for a while before I called out, “Koodi?”
There was a stirring in the sitting room and a young man peeped out of the window to return my greeting and inform me that the person behind the pots and plants was probably in the smaller house at the back – and he left his television set on to pop out and check.
The fellow, who this young man identified as his cousin Joe of Jowy Creations, was indeed away but could be found on Facebook.
A few days later I returned, this time deliberately, to view the garden again and try to meet this Joe of Jowy Creations.
Again, the gardens were still but there was sound in the sitting room. This time I didn’t have to call out before the very same young man, possibly wearing the very same vest, stood up from his television viewing position.
His cousin was in, this time, and came out to meet me though I first summoned the TV watching youth to interrogate him a little bit. Top on my mind was the question: Had he been watching television non-stop since the last time I had been, a few days ago?
He laughed and said he hadn’t. He was on holiday, from his university course studying “IT”, and was therefore chilling. Did he have a laptop or something else to occupy his time? He chuckled a bit but became irritated at my lugezi gezi, but I made it clear to him that I had an endless supply of it and would return to him after meeting his cousin properly.
img_20160121_170421.jpgHis cousin, Daniel Joe Semakadde, listened quietly to the exchange while behind him I noticed the garage held about fifty concrete pots in formation which hadn’t been there the last time I was.
He then took me round the garden to see his plant creations, his pottery and even
ironmongery! This was their grandparents’ home, and they now live there with a sectionimg_20160121_165903.jpg of the family.
Semakadde, a graduate of Food, Science and Technology, took to interior design as a child and made his first sale at the age of fourteen by putting together some dried twigs, colouring and arranging them in a pot. He still went through school dutifully, taking a difficult professional course, but during that time img_20160121_170446.jpgtaught himself how to make pots, weld metal, grow plants and design art pieces.
He has lived off that income very comfortably ever since.
As he spoke, his cousin was back at the television, and I could not understand how the fellow had let me leave the first time without trying to sell me any of the Jowy Creations. So I cut short the visit and called the young man out of the house for some more lugezi gezi.
To begin with, he had only Ushs15,000 to his name at that point, and confessed that he didn’t know enough about pottery and plants to earn any money from me doing it.
Long story cut short, we made arrangements for his cousin to train him for the remainder of his holiday, and I offered to ease the process by paying for his transport from the television set to the garden for the training course.
Today marks the end of Week One, and I am praying I don’t find him in front of a television. I also need someone to give me lessons in understanding how these two young fellows can grow up in the very same home and take such different paths in life – one to wealth and success through sweat and hard work, and the other likely heading to a despondent declaration of a lack of opportunities.

all hail the queen of Katwe


IF you don’t know Frozen, you either have no children, no TV, a very low media appetite, or all of the above.

That makes you commercially unimportant in the global scheme that the promoters of that movie designed and implemented well enough to take over the world of entertainment and commerce so decisively that the movie is reported to have grossed more in revenue in one year than some countries do in decades.

Your irrelevance to the global economic equations of the world’s premier businesspeople aside, you must – at least – have heard of Disney. The Walt Disney Company? Again, if you haven’t, then even your ability to read (especially in the English language) is a miracle you should be proud of.
Disney has been behind the world’s biggest entertainment projects for years and years; besides their amusement parks, we can focus on only their movies to get to the point here:
Their animated movie The Lion King made US$313million in the first few years after its release, while the musical (performed on stage) made US$6.2billion (BILLION!) in three years from ticket sales alone, and was seen by 75million people! Toy Story 3 grossed US$1.063 billion in 2010. Frozen earned $398.4 million in the United States and $674 million internationally to take the title. By March 2014 it had grossed US$1.072 billion in revenue after opening in Japan – and has continued earning since.
Disney knows how to make money out of entertainment. Let’s not even talk in detail about their amusement parks and merchandising, because there is too much information out there.
One Frozen statistic that flummoxed me was to do with a dress of one of the Elsa dolls; this dress that had retailed at US$150 sold out and started going for US$1,000 on eBay…secondhand, in some cases!
Then also, in one day in 2014 in the United States, Frozen sold 3.2 Million DVD and Blu-ray Discs. In one day.
Much more importantly, they make massive amounts from franchises. One US authority reveals that: Mickey Mouse brings in $4 billion in sales a year; the Disney Princesses (Jasmine, Snow White, Cinderella, Ariel, Mulan, etc. – I name them for a reason that will become apparent shortly) $4 billion; the “Cars” and “Winnie the Pooh” each $2 billion a year; and “Toy Story” brings in $1 billion a year.
Still with me?
This is one of Disney’s releases of 2016, about Ugandan chess prodigy Phiona Mutesi, who rose from Kampala’s slums to international chess stardom.
The movie will be released in April and will star Lupita Nyong’o and David Oyelowo (that black agent in Spooks) – and also feature Madina Nalwanga playing Phiona Mutesi, Ntare Mwine, and Maurice Kirya.
You guys!
Disney is going to feature a movie about Uganda (go back up a few paragraphs and read those figures again).
That means they are likely to make good amounts of money doing so while giving us – the entire nation – free publicity to make what we will with it.
Even if we just found a way of squeezing one of our promotional phrases onto the DVD covers, we would benefit greatly.
But let’s go to Katwe, first. Not many of us – you reading this – spend time in Katwe or can identify it apart from the tarmac bit we drive through on the way from Entebbe.
Now that it is going to get Disneyfied, the people at the Kampala Capital City Authority, Uganda Tourism Board and Uganda Investment Authority need to look up quickly and do some work there.
Create some Katwe trails so tourists enthralled by the movie can come visit and walk through Mutesi’s home(s), eat the food she ate, and jump over the dirty bits of road she skipped through as a child.
Speaking of food, does the Rolex appear in the movie? Luwombo? Katogo? Spiced tea with Cassava and gnuts? All Uganda’s restaurants and hotels should introduce a ‘Katwe Option’ onto their menus. This is the time to officialise Ugandan cuisine onto the world market and sell it in a big way so we have Rolex stands in New York, London, and at Disneyland!
That same Disneyland is where a lot of the merchandising rakes in the dollars, but let’s be clever over here and create Queen of Katwe chess boards, gomesis, bags and other merchandising.
Speaking of which, remember those Disney princesses named above? I have detested having to buy them for my daughters and nieces, and seeing the adulation beaming out of their eyes, but I will LOVE doing so for a doll named Mutesi…
Kudos to that young lady for putting Uganda on the map so well by usurping great odds to excel in a field so unexpected.
Phiona Mutesi! The Presidential Awards Committee should take that name and spell it correctly.
So should the media; our biggest celebrities and heroines are in the slums and villages, not in nightclubs and cities.
PHIONA-MUTESI
Phiona Mutesi: Our Queen of Katwe – Photo from i.huffpost.com

information is power – especially in economics


IN BIGGER economies reports should start circulating at around this time with details of the Christmas and Holiday shopping spends and trends.
Theirs being consumer economies with computerised systems and strict record-keeping habits pushed by regulatory authorities such as tax collectors, the statistics are in most cases easy to gather. Where they need to make estimates the figures are fairly reliable because of the manner in which they run polls and other forms of research.
The reports will tell us what items were most popularly bought or given as gifts, what items attracted the most spend, and what categories of items was found most popular. In addition, they will tell us what one mode of shopping or spend may have superseded the other and for what reasons.
These reports on their own are not the important element – they are supposed to be read along with the forecasts issued ahead of the holidays, predicting what the trends and statistics will be.
When one reads these spend and trend reports and compares them to the forecasts, one gets a general picture of how accurate or reliable the forecasts are, and can therefore take more of an interest in them later this year.
And there, ladies and gentlemen, is where opportunity lies.
If our statisticians and economists started crunching these numbers with seriousness, then the entrepreneurs amongst us would probably do better in coming days and months.
How?
Say, for instance, that it is discovered that it is not true that at Christmas we traditionally buy gomesis for our wives and whisky for our valued client contacts. If, instead, the reports show that we are spending more on fiction fantasy books as gifts during Christmas, then the wise entrepreneur will immediately embark on stocking up on these books for December, and will market them immensely to build on the already existing interest.
Before December, though, the statisticians and economists can help us prepare for the next holidays coming up – be it the January Liberation Day or the Easter weekend. What should we invest in? Where should we place our eggs? What should we focus on to get a piece of the season spend?
Plus, what should we manufacture or create? Did any Christmas Cards get sold in Uganda during the last season? How many and where were they distributed? Perhaps if we get this information we will start designing our own Christmas Cards for distribution this year.
Closer to home, if the statisticians and economists at the district level also put some information together then maybe we would be in a position to identify these opportunities right in our original home areas. How many people visited which districts or villages and what did they do there?
If you knew that 5,000 people retreated to your Village last Christmas and are likely to return in larger numbers this Christmas, again opportunity abounds.
There is a lot to be said about information and the way we put it to use, and not enough done about it.
Our Bureau of Statistics doesn’t do a bad job of compiling and releasing information but they do provide it in a format that the ordinary entrepreneur most certainly finds confounding.
The December 2015 Consumer Price Index, for instance, starts off with, “The Annual Headline Inflation for the year ending December 2015 rose to 9.3 per cent compared to the 9.1 per cent that was recorded for the year ended November 2015…”
Even I am not very clear what that means for my business plans, so Sula the Rolex chap who should be finding a way of increasing his Rolex sales during holiday seasons by taking advantage of the euphoria then, has no hope.
The Index Report, though, does provide a lot of detailed information that cleverer chaps than myself could and should extract and fashion into packets that can empower the ordinary person on the street, along the lines of that commonly used phrase; ‘Information Is Power’.