There is a smell of money in the air in Mbale. When you drive in, two things catch your eye. The first, if you are driving along the main Republic Street, are the number of banks elbowing each other for prime space along the thoroughfare. Stanbic, Dfcu, Standard Chartered, Post Bank, Barclays, etc are all open for business.
The second is the sheer number of people out on the streets doing business and all sorts of trade. Many shops stay open until almost 7p.m; the stalls set up along the street corners even longer.
There is a sense of opportunity and possibility in the air. At the Mount Elgon Hotel where I stayed, the bar downstairs was busy when I arrived.
The Italian investor who now runs the hotel has just opened a swimming pool, redone the bathrooms and given the old place a good old spring cleaning. The Resort Hotel, I was told, was even busier.
Even the small restaurant I stopped at for a mid-morning cup of coffee in the town was packed with locals having breakfast and reading newspapers.
Mbale, of course, was once a big town – and the cleanest. The streets have seen better days but they are still much cleaner than many in Kampala. It is still a big town – if you want to know whether a town is 'big' or just a one-street trading centre, ask if it has any suburbs; Mbale does.
Property prices are up; I was shown a three story building along the main road that recently went for Shs1.1billion and told about a plot of land three streets away from Republic Street. Asking price? Shs200 million.
What is intriguing about Mbale is that the renewed prosperity is driven by good old business acumen and new opportunities. Like Jinja, Mbale was once an industrial town, producing blankets, paper products, etc and was also a main coffee producer. Years of mismanagement and poor government policies brought the industries – and the coffee trade – to their knees until it was feeding on the crumbs of the smuggling trade.
Now Mbale has become a trade hub for Karamoja, Teso region, as well as Kenya and Southern Sudan. A lot of the maize, cassava and bananas that are exported to Juba and Kenya are grown on the fertile soils near Mt. Elgon.
Decentralisation and the carving out of new districts have also played into Mbale's hands. New districts such as Butaleja, Bukwo, Nakapiripirit, Bududa and Manafwa, Sironko, Bukedea and Budaka all surround Mbale but do not have any local bank branches.
Most of the civil servants in those districts either live in Mbale and commute to their offices, or come to the main town to withdraw (or bank) money. Naturally, they are part of the crowds that keep the shops open longer or cram the streets hunting for bargains.
Mbale might have been favoured by its location but its rising fortunes hold a lesson for districts like Jinja and Tororo that had a glorious past; unless they re-invent themselves and take advantage of current opportunities, they will remain stuck with a great future behind them.
Ironically, one of the best stories emerging out of Mbale comes from an old pivot of the local economy; the Bugisu Cooperative Union (BCU).
BCU last year elected new blood to office, headed by the brilliant Nandala Mafabi. The new team started by removing internal waste, graft and incompetence. Then they started renovating the union’s commercial properties, collecting rent and investing it in the union’s mainstay; coffee-growing and processing.
A few weeks ago, BCU announced that between September 2008 and February 2009, they had turned in a profit of Shs1.4 billion – the union's first in 20 years.
Mbale is getting its groove back. It is time for local leaders and business people in other 'dead towns' to finally wake up and smell the Arabica coffee.
Written by Daniel Kalinaki and Published in Daily Monitor, March 26, 2009