Africa may be disorganized or least developing, but it offers several market opportunities with cannot easily be found in other markets like in Europe, Asia, or the Middle East. In Africa, you can sell an average-standard product at a high-profit margin, and no one will care. Because in Africa, no one cares really! Consumer protection is weak. Customer awareness of their rights is weak, too. Many people lack an understanding of what a genuinely excellent service is. Any basic service offering is seen as excellent service. Take the case of banking. Many people are easily satisfied when they visit their…
Why a high cost to income ratio in banks?
#mindspark #banking Uganda’s banking industry is characterized by a high cost to income ratio. In 2016, during the election period, it peaked at an average of 97.5%, meaning a gross profit margin of just 2.5%! Being dominated by foreign banks, profits are repatriated through transfer pricing, high expatriate staff salaries and benefits, and generally high cost of capital from head offices… etc. Above all, many banks automation is not optimized. ICT is not an efficient driver but a cost driver making banking experience expensive. And of course, fraud costs reported as expenses! On 14th August 2020, we launch the banking…
Open letter to His Excellency, the President of the Republic of Uganda
Your Excellency, How is it possible that the People’s Representatives in Parliament can approve mid-term access to Social Security Funds, and then you refuse to sign the same, just like that? It seems life is just a journey of “unfairness.” I compare this to a house help which is made to cook food, serve the masters, and only wait to eat after the masters (and their visitors) have had their fill. The right thing would be to serve the masters and the house help at the same time. The act of making someone wait as others are having their stomachs…
What does good parenting entail?
Parenting is an ongoing battle between mind and heart of the parent. What is the best way to raise the children? To make the children do house chores or not? To spoil the children with gifts and freebies as House helps do the work or not? To balance the tasks at home or not? Whoever uses the heart to guide the young ones, is most likely to win and make a great parent. For that reason, uneducated parents make great parents as well just like their educated counterparts— parenting with a heart is the equalizer. The winner is always someone…
Banking in Uganda is being disrupted. Are you safe?
As the value of the mobile money transactions increase, non-performing assets or bad loans in banks have been increasing, see Figure 1. Why? You may ask. Banks are yet to integrate credit risk assessment between the Credit Reference Bureau and MoMo apps, which offer short term credit and quick fixes via the mobile phone. People prefer to take small loans over their mobile phones instead of servicing their loans. It is mobile money credit that is so convenient and easy to get. Accordingly, customers find it responsive to their needs. This is something banks’ risk departments must think about, especially…
How would you summarize your last ten years of your life?
I asked the above question to a group of people on my mentorship program, many of whom already successful financially. The responses were varied: I worked hard in search of money, but by the time I found it, I had already lost my family and old friends. A high performer who was a darling of all, but lost God along the way. I got to learn about God when I was admitted to intensive care, and my money could no longer save me. A rich man who is a stranger to his home and relatives. A career of doing what…
