Is the collapse of GTV, a UK based satelite TV corporation in 24 African countries including Uganda a clear signal to spend-thrift Ugandans that indeed the global economic meltdown is here with us for real? The sub-prime mortgage crisis in the US and the subsequent financial crisis has been in the news since 2008 and many of us have been somewhat indifferent. While the Americans and europeans have parked their cars due to the credit crunch as they adjust their lifestyle to a more realistic approach, Ugandans do not seem yet in sync with what is going on around the world. Reason, we just bought our dear President a $44m gulf stream 5 jet to ease his transport. Public expenditures such as these with no protest are a clear signal of a non-progressive government and now forward-looking or politically resigned citizenry.
Britain,Uganda's largest bilateral donor is in recession just like greater Europe. Japan and the US are in recession with factories and businesses closing shop. China whose economic growth was on a roller-coaster has caught the cold too. The thing is, the problem is very real. GTV is the first "blue-chip" corporation to close shop just like that and the impact is grave. 49 employees have instantly lost their jobs back on the streets. 700 franchise dealers have lost business while "bibanda" owners, bars and restaurants where premier league football has been a cash cow are either out of job or just in trouble. The spiral effect is certainly not obvious to many but the next 3 years are going to be different ladies and gentlemen.
You might not know what goes on in the corporate board rooms of your company. Why would you anyway? You're not a commissioned officer to qualify sitting in the corporate "situation room". But the possibility that you can lose your job in the current economic conditions is not something distant. You wont have anyone to blame by the way. Yes, you can lose your job anytime and I am not bluffing!! How prepared are you? Have you tried making a few adjustments in your lifestyle? If it is business as usual, then I bet you're going to crush!
It is obvious many corporate businesses in Kampala are going to be affected if not already but they rather would not publicly confront the 'monster" as they have floated on the Uganda Security Exchange due to a possible "run for the money" stampede especially in the banking sector. But all banks whose equity investors are foreign especially those based in Europe and the US can do a "GTV" and do not forget government insures only between 10-30% of your deposits. I am not saying dash for the money, just invest smart and be in the know of what is going on.
Britain is currently facing wide spread wildcat strikes over foreign workers shipped into the UK. Prime Minister Gordon Brown has asserted that UK jobs will remain for British workers a clear departure from the EU immigration policy as the recession bites. This is a time we might, collectively, regret all the lost opportunities we had when the global economy was in a boom. We might have to start regreting all the resources we have wasted out of excitement from a public policy stand-point. I am talking about a government that has been in celebrant mood for long.
If the $700m annual remmittance kit from kyeyo does not come home as a result of the credit crunch in Europe and the US due to loss of jobs and increased economic hardships, it will have massive impact on the construction, education, health and other social sectors of the economy. Government is going to realise low revenue to actually deliver the little it was delivering to the public if corruption remains a constant. Bureaucratic red-tape in the European Union governments and the US will delay disbursement of donor funds to the Ugandan government and NGOs as programs will be postponed for future action as resources are mobilized to address domestic economic problem in donors coutntries. NGO donors will find it hard to send money to Uganda when faced with harsh domestic economic challenges too. This therefore is not a good time for the beggar-economy we have bult over the years. This is not a good time of wasteful spending both at personal and state level. This is a time for frugal behaviour both from government and at individual level.
Unfortunately, we seem to rarely learn from history and we forget very fast and hardly anticipate the future.
For God and my Country,
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