The UTL Saga: The state salvages the debt to resurrect the Walking Dead

This Mango has gone through a lot. A former state company sold to Libyan investors and after the Libyan credit started to fail. The Ugandan Telecom Company (UTL) or Mango started to suffer too. The Telecom have been so hard hit that three years ago the state had to take it over.

There been so many twists and turns, where the company have been rumoured and speculations. Even the Minister and owners was speculated to moved to a shell company in Mauritius. Therefore, today’s sudden windfall and paying off debts. Is only bailing out a sinking ship and hoping it still doesn’t sink.

The UGX 45.6 Billions to the TDB (Eastern & Southern Trade & Development Bank). With this payment of this debt. The state is initially taking over UTL. This as they plans to make the UTL attractive to investors again. Mango haven’t been viable for years…

The Libyan Post ditched in March 2017 and since then it has struggled. The Libyans said the Government of Uganda needed to figure out a transformation plan for the UTL. It has clearly taken three years to figure this out. That nobody wanted to takeover the loans of a company, which haven’t invested in Telecommunications in years. Where the changes of mobile data, 3G and 4G networks for smartphones. The UTL haven’t had the funds or the ability to change with the times.

UTL is struggling because the state haven’t been able to save it before now. The regime needed over three years to figure this out. This with the steady leadership of Evelyn Anite, Frank Tumwebaze and Gen. Kahinda Otafiire interfering all at different times. While they have all done their part … it still took the Committee until now to secure payment for the debts. This should have been resolved earlier, if they intended to make it viable business.

In 2017, Anite even wanted all Ugandans for Patriotic reasons should have one UTL line. Maybe, she thinks everyone has a Airtel, MTN and could have UTL sim-cards in their phones. As the usual person should have at least double or dual sim-cards.

This all been a long lasting saga, which shouldn’t take this long. It is a fledging company. A former state corporation privatized and sold for scraps to Libya investors. Who earned on it in the good times, but ditched it when it got hot. Because, it been years since the UTL been viable and been a commodity.

This Mango is rotten. The Mango tree isn’t yielding any fruits anymore. This is a Walking Dead Enterprise. A Telecom who has no traction and is only throwing good money for bad investments. The money could have been burned in a street or thrown down a storm-drain, and it would still have more sense then investing it here.

UTL is being saved, but was it worth saving? Does it have any assets or financial liabilities worth mentioning? The competitors are miles ahead and the UTL needs huge investments to be in the same arena. Do they think another investor will spend money like a drunk uncle in a market, which is already filled with big companies. Who has small margins and higher taxes.

Therefore, the ones doing it … has to be regime “friendly” and willing to throw away good money for a bad investment. Peace.

Cameroun: Presidence de la Republique – Objet: Droits de douane et taxes sur les telephones et terminoux importes (19.10.2020)

South Sudan: Government have defaulted on a $700m loan!

In Juba, there should be a crisis. However, we can expect that the Transitional Government of National Unity (TGoNU) are granting new loans to cover for defaulting old loans. As the Qatar National Bank who has loaned the Republic $700 millions United States Dollars.

The TGoNU have defaulted and not paid their first instalment on time, which is the reason for why the QNB have sued the government. The loan from the Qatar is now due and the Republic got to cough up the money owed.

President Salva Kiir Mayardit and his cronies got to figure something out. They need to find the money and ensure they can answer for it. Because, now the remedies are only repayment or instalments of payments, which was scheduled, but the TGoNU defaulted on that.

The QNB have done the right thing. Who knows where the millions of dollars has gone. Only that they are served to repay it now. The state was supposed to start paying instalments from March 2019. That is something it didn’t do and over 1 and half year later. There still haven’t been a coined in return.

This is why the Qatari Bank is serving the authorities of Juba this International Court Case. As they haven’t hold up their bargain. They have misused their trust and their office. Tried to run away from the bill, which they have already cashed in.

This is a huge sum to return to Qatar, but the South Sudanese government took the loan. They were supposed to pay $20m at the time. Alas, they were not willing to do that. That is why they have put themselves into this predicament.

The TGoNU has defaulted on this loan. The Republic have taken other loans too. This is the one the public knows about. We can wonder if they have issues with others too and what extent of debt burden the state has. As this is just to one bank, but they have also taken loans from Multi-National Organizations, International Banking Institutions and others. Which will also have a grace period ending in the future. That means, the state has to pay more in interests and bigger debt repayments.

That will hurt the state, a state which has nothing to give away. As the government supposed to build institutions and government services to the greater public. Alas, if this continues, then they cannot afford to do so. Because, they took out bad loans and didn’t have the foresight about the costs of doing so. Peace.

Brexit: Prime Minister Boris Johnson letter to the MPs (16.10.2020)

Brexit: Boris thinks bullying Brussels gives him the result he wants…

Prime Minister Boris Johnson who has signed a revised Withdrawal Agreement (WA) and has a deadline of 31st December 2020 to end the transition period between the European Union and United Kingdom. That is all making sense.

EU negotiator Michel Barnier and the European Council have put out a statement on the 15th October 2020. Where they put forward the guidelines, yet again. While the Tories, David Frost and PM Johnson thinks they can move the goal-post in the final stages of the negotiations.

The UK are now asking for the trade agreements in line with Canada and Australia. This will not put forward the statutes, articles in the WA and the troubles of Internal Market Bill. The Tories are still playing the game of “what we want, we will get and forget old agreements”.

The funny thing about this. That the agreement made between UK and EU isn’t an old age agreement from a far forgotten past. No, it was made by the same government in negotiations with the EU. The European Council and EU 27 Member States has agreed upon this. Therefore, it is a significant deal, which settles the foundation of the relations between the two parties.

Alas, Boris wants to alter that now. Just mere 10 weeks ahead. While there are two more scheduled meetings and talks. The Prime Minister is putting forward talks of trenches and going to the barricades. As he knows his just playing for his base. The PM is doing this charade and mockery of a public display. He should know, that when you agreed upon certain things. It is a bit late to back-track just mere months ahead of deadline.

The Prime Minister Johnson is now trying to pull the pix-and-mix Brexit and the Red-White-Blue Brexit of Theresa May. This is 2020 and the Tories are still not sure what sort of Brexit it wants. It wants the best of both worlds. It wants to be a non-member, but also doesn’t want to honour the agreement it has already signed. That is showing what sort of disgusting leadership is in London.

London wants to bully Brussels. Brussels, the EU Commission and EU27 have been clear. There is no vindication for the Tories. It is just like a entitled brat wanting more candy, when the store is already closed a few hours ago. The parent have to give the kid a lesson and explain why its not possible.

The PM have to accept this and understand this. The only ones losing on this sort of public play. Is the British public and all citizens of UK. They are pawns by the leadership in Whitehall and Downing Street 10. Who are playing with their futures just to look good. While not making sure the best interests are made with the EU.

Instead, over Christmas an uncertain future is ahead, the UK is sailing alone and with possible “no-deal”. Which is affect all parts of society, most likely a higher inflation and hitting businesses in the midst of recession and a global pandemic. That is what the Tories are willing to do.

Just to look good on Prime Time TV and feed the Brexiteers in their homes. Who doesn’t see the damage it does, until it hits home. Peace.

African National Congress (ANC): Statement on the ANC on the Economic Recovery Plan announced by President Ramaphosa (15.10.2020)

United Kingdom: First Minister of Wales Mark Drakeford letter to Prime Minister Boris Johnson (13.10.2020)

Opinion: Switching the SSP to something else isn’t the trick

In Juba on Friday, the Cabinet decision to change currency came to the public. This is happening after several of attempts and changes in Ministry of Finance. However, none has lasted or made a difference. Therefore, the Transitional Government of National Unity (TGoNU) have decided to drop the South Sudanese Pound and create another one.

Nevertheless, economics and financial policies aren’t that simple. There are some key components missing to create the balances in order. First, the state can and is allowed to change their currencies. That is up to the sovereign. Is that advisable?

Most like not, because you have to build a foundation and have the balance sheets in order. The grander public got to understand the change. The markets have to invest in the futures of the currency and it has to trusted.

It can be a financial trick, a juxtaposition to just to get you out of a hurdle. You move from one account to another. But, then again… you get the same value for practically nothing. Maybe, even the currency has no value, as nobody trades on a value that nobody trusts. That is why its key to build trust and monetary policies around what you already have.

Unless, you want a Bond-Note bonanza and erupting inflation out of spiral. Making the pennies and dimes worthless anyway. If that is the trick, the Bank of South Sudan and Ministry of Finance should just go ahead. Instead of securing the measures, the trade policies and the monetary instruments of the Republic.

They are instead re-issuing a new currency. They are dropping the SSP for something else. There have to be a transition period. A time and opportunity to change the currencies. As the time goes for the switch, the public and businesses can go from SSP to whatever it will be. If not, then they are draining the system and emptying the coffers of people. Which in the end, will also ensure there is less money in circulation.

The saga of the SSP will haunt the new currency. Because, this is just changing the name, but not changing the elements. They are taking away the history and the namesake. However, the same lack of trust and monetary instruments are still there. If they had these and ensured the markets and safeguarded the currency. Then the public could have some trust and if there was measures in place. It wouldn’t be necessary to switch and ditch the old one.

This here is a sign of weakness, lack of process and just sudden change. In hope that this is the remedy. This sort of action is the quick fix and hope it can miraculously save the day. However, it is never that easy. Especially, when your not only building market dynamics, but also on trust. When you need several of components to work in tandem and be at each others side. If they are not. Then one will beat the other and in the end the citizen or consumer is the loser. As the currency gets devalued since the authorities cannot contain the brutal assessment of currency.

This is short-sighted. It really is and the next one will have the same remaining issues. Your folding one chapter, but your just starting where the other left off. It will be just a matter of time before this stinks too. Since, the same fella’s are running the shop and their game is to earn a quick buck. Peace.

South Africa.: Jacob Zuma Foundation – Commission’s Amended Application for Sub-Poena (08.10.2020)

National Bank of Ethiopia (NBE): Amended Provisions to Directive No. FIS/03/2020 (07.10.2020)