28 yrs after Idi, Indians're back in biz

A speeding convoy of cars took Prime Minister Manmohan Singh from Entebbe airport to Sparrow Cottage at Munyonyo Speke Resort in Kampala last night.

The resort has 53 such cottages, one for each Commonwealth head of state.

It stands out like an oasis in poverty-stricken Uganda and is owned by Sudhir Ruparelia, an Indian.

Some of the best hotels and resorts in Kampala as well as in forest sanctuaries in the Ugandan interiors belong to Indians like Ruparelia. Local businessmen say almost 70 per cent top hotels in Kampala are owned by Indians.

Thirty five years after Idi Amin decided to rid Uganda of "Shahs and Patels" and gave all 55,000 Indians living in the country just three months to leave, Indians are back in control of business in Uganda. Unofficial estimates suggest they now account for 40-50 per cent of the Ugandan economy (the same as in 1972)and rank among the biggest employers and highest contributors to the government's tax kitty.

Unlike in the past, when they had a dominating presence only in farm-related businesses like sugar, this time, Indians have a thumping presence in every sector of the Ugandan economy: Manufacturing, hospitality, trading, finance, agri-businesses and real estate.

"Ten years ago, there were no rich Indians around. Now, there are so many of them," said James Mugambi, the chief operating officer of Micro Africa, a micro-finance company.

Things started improving for the Indian community when the current ruler of the country, Yoweri Museveni, came to power in 1986 and invited Indians back with the promise of restoring their property.

About 2,000 Indians who had been driven out by Idi Amin returned to rebuild their businesses. This includes the Madhvani and Mehta groups, who now run the biggest sugar mills in the country.

In the last few years, more Indians have migrated to Uganda. Niraj Shrivastva, India's High Commissioner to Uganda, says there are about 16,000-20,000 Indians in Uganda, most of them in business.

This morning's newspapers were full of advertisements put out by Indian firms welcoming Prime Minister Manmohan Singh to the Commonwealth Heads of Government Meeting happening here.

Doing business in Uganda does have its challenges. As a large section of the population lives on subsistence farming, Ugandans do not save much. As a result, interest rates on commercial loans are running as high as 24 per cent per annum.

With the Ugandan shilling on a downward spiral, raising funds abroad is hardly a viable option. There has also been at least one recent incident of workers rising against their Indian superiors.

Meanwhile, Indian companies too have started scouting for business opportunities here. "We get a lot of queries," says Shrivastava. Cipla has set up a joint venture firm here to make drugs for treating malaria and HIV/AIDS.

State-owned Bharat Heavy Electricals Ltd will supply turbines to the 250-MW Ayago plant, which will more than double the country's electricity capacity. The Indian government has given a credit line of $350 million for the project.

In short, Indians are back in business in Uganda.