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Naive Interventionism: How Bank of Uganda led to the Death of Crane Bank?

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Crane Bank

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By Tracie Mugisha

In October 2016, the Ugandan citizenry was pelted to shock by a Bank of Uganda announcement. They had taken over Crane Bank and immediately ordered for the suspension of the top management. What followed next were massive withdrawals as thousands of clients rushed to get hold of their deposits. The second-order effects of takeover were beyond expectations. Suddenly Bank of Uganda was trapped by its decisions.

In Economics, a term was derived; “iatrogenics” popularized by Nassim K Taleb the probability Guru and writer of Black Swan. Iatrogenics is simply a term used to describe harm that is done by the healer which is what the Central Bank did to Crane Bank.

From the start of the year, the bank had been posting profits. However, the effects of its written off Non-performing loans had caused some sort of liquidity crisis. The Central Bank hounded the owners of Crane Bank to recapitalize within a month or else face receivership. Sudhir Ruparelia, one of the owners requested that he be allowed at least 3 months to recapitalize. This was rejected by the Central Bank. He then requested that the Central Bank bails him out and he attaches his real estate properties to save the bank. Once again, BOU rejected this proposal.

In July, Crane Bank was stopped from offering any loans, letters of credit, bank guarantees just to mention but a few. As a result, the business community that always frequented the bank begun to shift house. They withdrew their money and opened accounts in other banks. It is no surprise that in the same month, despite having posted profits from the start of the year, the bank posted a loss having suffered all these effects. Then the rumours of businessmen withdrawing their money begun to circulate. Surely something was amiss at Crane Bank. Before long, the rumours were maturing on Social Media. Now, even the normal clients begun to withdraw their little money. Finally the bank was put under receivership further sinking it into an abyss of no-return. It was a black-hole for a Crane Bank.

On the day of the take-over thousands of the bank’s clients could be seen leaving the bank with bundles of cash. The Central Bank’s interventions had sunk Crane Bank.

But did the Central Bank really have to act? Did it realize that its naive interventionism was instead harming the bank and the economy at large?

In complex systems, small errors should be left to correct themselves. These small errors are ways in which complex systems achieve self-stability. Yet the Central Bank intervened in order to correct these small errors. And on top of this, broke the number one rule of Common Sense which states; “the law cannot be a substitute for common sense.”

Now Crane Bank is in a worse situation that it was. No investor would love to take on an already soiled entity. The customers have transferred to other banks and Crane Bank will need much more injections, thrice what it originally needed to recover. Already, tax payers have lost UGX 200 billion that has been injected by Government to save the bank. Still, the Central Bank doesn’t realize that its naive interventionism has also cost tax payers over 200 billion and will continue to cost them even more.

What was so hard about letting Crane Bank recapitalize over 3 months? Was it the only bank that was in such a dire situation? In hindsight, the Central Bank may have to eat a humble pie and accept its faults in failing to adjust its policies to the realities of the economy. It will also have to accept that the death of Crane Bank was entirely its responsibility. And one can only hope that in future they will learn to go slow on their naive interventionism. The blood of Crane Bank is marked on Bank of Uganda’s hands.

Note: Tracie Mugisha is a writer with CampusEye.ug.

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TECNO CAMON 11 and CAMON 11 PRO launched at special Christmas Price

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By Staff Writer

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Christmas is around the corner and so are all the juicy deals from top brands in Uganda. Today, TECNO Mobile Uganda has launched two new smart smartphones called the CAMON 11 and CAMON 11 PRO at a special Christmas price. The new phones have been described as the drivers for the future of selfies by some thanks to the ability to take bright and clear selfies with high quality powered by the new AI Technology.

The CAMON 11 duo exploits improved AI technology for selfie photography among many more AI- powered operational features like AI Bokeh effect, AI HDR, and AI automatic scene detection. Together with the super Notch Screen of 6.2inches and upgraded multi-tasking software, CAMON 11 and CAMON 11 PRO offers consumers a better user experience.

Artificial intelligence (AI) algorithms in-built in the CAMON 11 and CAMON 11 PRO is capable of doing a lot more than what previously seemed to be impossible by smartphones.

The revolutionary AI technology embedded in the CAMON 11 PRO and CAMON 11’s camera elevates the smartphone selfie experience.

For the Selfie-lovers, the high-end 24 or 16-megapixel front camera gives a whole new dimension of selfie experience. AI-technology smartly allows customers to create high-quality self-portraits with natural skin colour by optimizing the image, thereby achieving brighter colours and sharp contours.

The new CAMON 11 and CAMON 11 PRO does not pride only in the new AI technology but also showcases its ability to give customers an impeccable experience right from the slick beautiful diamond fire design to the space and many more fantastic specs.

The new phones comes sealed fully accessorized with new headsets, charger, tempered glass, (screen guard) and pin.

CAMON 11 and CAMON 11 PRO have been favourably priced to not only enable customers access it but it’s also time for giving and celebration, therefore the price is to give customers a reason to celebrate their festivities in style with a new super smart gadget. The new phones will be at a Recommended Retail Price of CAMON 11 UGX 578,000 and CAMON 11 PRO UGX 899,000.

The new CAMON 11 and Camon 11 PRO will be available country wide in all TECNO exclusive shops starting today 10th December 2018.

Below are the some of the spectacular features of to look out for;

AI Technology Captures More Beauty of You
New AI technology advances include more accurate facial recognition capability. CAMON 11 and CAMON 11 PRO cameras are able to improve self-portraits with the help of AI Beauty by recognizing up to 240points on the face of the subject, delivering better beautification effects no matter the gender or age, and enabling self-learning capabilities based on user preferences, plus other added fun features. It also supports Face Unlock option and is equipped with its own powerful AI adjustable front LED flashlights, which allows to get beautiful and realistic photos with a certain flash level customized for you.

Taking selfies has never been better, thanks to the advanced 16 MP front camera for the CAMON 11 and 24 MP for the CAMON 11 PRO. These front cameras have the widest dynamic range due to the AI feature in HDR mode, guaranteeing perfect shots in any light. In low light conditions, the camera takes several pictures at once, combining them into one clear shot, which guarantees accurate detail processing and eliminates the problem of image blur. AI is also able to automatically recognize scenes and adapt to shooting conditions, as well as select the optimal parameters for a wide variety of shooting modes from sports to portrait.

The dual camera is designed for impressive shots to gain popularity in social networks. Night shooting mode is also based on AI-technology and provides high detail photos, even in conditions of limited lighting.

The storage- 6GBRAM + 64GB ROM
Set the pace with the new CAMON 11 PRO, powered by a ground-breaking 6GB RAM and 2.0 GHz Octa-Core processor, taking your “speed” to the next level. Feel free to watch your favourite videos, download content, play games, and with the help of machine learning technology, CAMON 11 and CAMON 11 PRO are able to accelerate the game and put the phone into anti-disturb mode for users, which will bring a more immersive gaming experience.

More Fun with Animoji

Animoji combines human expressions with 3D virtual expressions through Augmented Reality (AR) technologies and creates dynamic cartoon images in keyboard, which is embedded in the typewriting and allows for usage in all major instant messengers and social networks – Facebook Messenger, Twitter, Google+, Hangouts, WhatsApp, Telegram, Skype, etc. Animated emoji reads facial movements and recreates them, making chatting with friends so much more fun!

Advanced HiOS Software – Favorite Apps at Your Fingertips
The HiOS software is intelligent enough to recognize your favourite apps and have them open in just 0.3s through your different fingerprints. One can set up “Google + Facebook + YouTube” to open using your forefinger print or access “Instagram + Google Map + Snapchat“via your mid-finger print, all at your personalized convenience.

Call Recording by Fingerprint

Conversations embody our relationships, fuel career growth, offer evidence for justice, and more. From helping us keep alive the memory of loved ones, to keeping records of legal discussions, conducting interviews or even making customer service calls, the CAMON 11 or CAMON 11 PRO makes recording calls a breeze. By just a simple tap of the fingerprint scanner, the call will be recorded immediately.

Follow @TECNOMobileUganda on Facebook for more information.

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Buganda Kingdom products to begin selling on Jumia

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Jumia and Majestic Brands Limited, Buganda Kingdom’s official investment arm, have announced a new partnership where all kingdom merchandise will be readily available on Jumia.

The Buganda Kingdom product assortment on Jumia includes, portraits of His Majesty – the King, Maama Nnaabegereka , marriage certificates, totems and memorabilia. All sales revenue will go to support the kingdom development projects.

The partnership was announced at a press event in Bulange, Mengo, and attended by Owek. Charles Peter Mayiga, the Katikkiro of Buganda, Majestic Brands CEO Mr Ronald Kawaddwa, and Jumia CEO Ron Kawamara.

“The Buganda cultural and brand products are highly appreciated by millions of consumers globally. Today we are pleased to offer a new distribution channel for our customers to own the symbols and memorabilia that make up the norms and culture of this great kingdom”, Jumia CEO, Ron Kawamara said.

Mr Ronald Kawaddwa, Majestic Brands CEO said, “ We hereby request our people to conveniently make use of this platform to get these products.”

The eCommerce space in Uganda is on the rise, with Jumia receiving an average of 500,000 visitors per month, a 120% increase from last year.

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Immersion Uganda Sets Dates For Midnight Party Bus

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By Demo Reily

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Immersion Uganda’s midnight party bus experience to Entebbe will officially set the tone for the party month of December. The party bus experience which is basically a tour bus fitted with lighting and sound, dancing, glow sticks, lots of alcohol and pizza, will be happening on Saturday, 22nd of December.

The fun is not just in the journey but the destination. The tour will involve hopping from bar to bar in Entebbe’s renowned joints like Riders, Street Club and De’Bar included on the itinerary. There will also be music mixes by DJ Chapat on the bus.

Partiers will be welcomed with shots on arrival at the bus included on the ticket price and guaranteed free and secure parking dedicated for all partiers at Hotel Africana, where the departure is slated at 6-7pm.

The bus will then return to Kampala with all the music, raving and drinks, pizza and bar hopping where Uber and designated driver rides will be available at the arrival.

ABOUT IMMERSION UGANDA

The ImmersionUG city tours agency is a brain child of Arthur Mwanje who has put a distinctly Kampala city in touch to epic tour offerings. Their best known tours are the ‘Kampala-On-Foot’ free city walking tour, the ‘Kampala-After-Dark’ tour rated by trip advisor as Kampala’s number one nightlife attraction, and their ‘SavourUganda’ food tasting tour.

They intend to provide a great way to get a first and engaging introduction to the city and spirit of it’s people, for visitors. The agency is run by passionate young locals, and are conducted in a fun, quirky and casual way. They allow guests to have an unusually intimate experience of Kampala and surrounding towns. More recently immersionug now arranges monthly events tailored towards locals and the Night Party Bus is a prominent example.

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