{UAH} Patents and Nyeko's Shs28 trillion spent on imports

Victoria

Kindly pen another one and argue government to start buying patents
and royalties to enable it to produce the most imported goods here at
capacity we can consume.

Here is how it works:

Most developing countries that have no capacity to conduct product
research and development, they buy patents. This implies, even if the
market potential is low the patent will allow the recipient country
to produce at a market capacity.

In fact as Anite said - Uganda receives 500 investors every month but
shifting their huge capacity factories to Uganda will be throwing
money in a black hole. The capacity to consume here is very low.

You mentioned TVs, Washing Machines, Cookers – these are household
items if produced here at our labour force wage levels, can help the
coutry to as well start exporting the same items.

This though requires that as we buy patents to produce goods that we
can't develop ourselves we can as well set up research and product
improvement facilities. By doing so we can go ahead and develop our
brands.

The bottleneck here though will be marketing such brands to gain a
footprint into the global market. South Africa LG is not reinventing
the wheel but rather using patents to produce what they need under a
different brand name.

Normally reknown campanies would not like to use their brand name lest
you destroy their market. S w can name TV set ( Katonga or faceIT
etc.,)

Bwanika

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By Victoria Nyeko

Last week, the ruling NRM party celebrated its 32nd anniversary at
Boma Grounds in Arua Municipality. The celebrations were premised
under the theme: Uganda's liberation struggle, significant
contribution to our present and future development.

President Museveni mentioned cornerstones in his speech on which NRM
strategic achievements are based. The pillars include ideological
orientation, patriotism, pan-African values, social economic
transformation, infrastructure and democracy.

The President made an interesting observation when he said: "Uganda is
very wealthy, we are giving away jobs to other people's children by
importing $8b (about Shs28.8 trillion) worth of goods like these suits
we are wearing, mobile phones, television and computers."

The comment was interesting and strategically aimed at promoting
locally made goods and services. The intention behind the remarks was
commendable. It was aimed at encouraging the creation of jobs in a
country where there is high unemployment.

There seems to be a renewed drive among world leaders to reduce
unemployment by creating jobs. The recent trend seems energised by US
president Donald Trump with his catchphrase "Make America Great
Again".
Trump's strategic intentions of job creation for the Americans by
promoting American goods and services seems to be working with
unemployment being recorded at its lowest in 17 years at just 4.1 per
cent, according to the American Bureau of Labour and Statistics.

In the American manufacturing industry, almost 24,000 jobs have been
created under Trump's administration. Interestingly, Trump's
employment efforts in the US economy cannot be given all the credit.
Significant employment improvements originally started under former
president Barack Obama, and have been supported by a combination of
other economic factors of influence.

According to economist Cathy Barrera, other economic factors include
technology improvements and also the weaker US dollar, making American
exports more affordable for many countries. The implications are that
since Uganda also imports from America, we are effectively giving away
jobs and contributing to reducing unemployment in president Trump's
economy.

It's difficult to imagine that in Uganda we are actually spending
Shs28.8 trillion importing and enjoying the use of foreign-made items.
Our desire, need for convenience and comfort defies reason and seems
understandable for many families.

In this day and age it is simply accepted that almost every urban
household strives to have mobile phones, computers and television
sets. The old age assumption that in Uganda, we don't have the
capacity to locally manufacture goods such as computers and television
sets that meets internationally acceptable standards could soon
change, according to government's aspirations.

Already in Uganda, there are motivating trends steadily emerging that
contrast the misleading perceptions, especially in the manufacturing
sector. There has been significant increase in locally produced goods
being exported to regional markets. According to Uganda Export
Promotion Board executive director Elly Twineyo, 10 years ago Uganda's
exports to the region were completely insignificant.

However, in 2017 Uganda gained almost $1b (Shs3.6 trillion) from
exporting locally manufactured construction materials, compared to
$10m earned 10 years ago. There is growing regional demand for Ugandan
construction materials such as cement, steel and iron bars. These
products are gaining popularity in regional markets such as western
Kenya, DR Congo, South Sudan, Rwanda and Burundi.

The encouraging signs in the manufacturing sector could prove to be
significant in absorbing high employment rates in Uganda. The recent
initiative by NRM government banning excessive government official's
travels abroad is also a move in the right direction to end the free
donation of Ugandan jobs to foreign countries.

Ms Victoria Nyeko is a media commentator.
nyeko.victoria@yahoo.com
Twitter:@VictoriaNyeko

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