Amina: The village girl who changed Kampala''s urban lifestyle

Jul 20, 2014

Growing up as a young Muslim Somali immigrant girl in the small town of Bungoma, Kenya, we were not allowed to be seen or heard. We were not supposed to go out and play,” recalls Amina Hersi Moghe.

Growing up as a young Muslim Somali immigrant girl in the small town of Bungoma, Kenya, we were not allowed to be seen or heard. We were not supposed to go out and play,” recalls Amina Hersi Moghe.

Ironically, now that the world has seen and heard not just of her, but her face and voice; it was not because she dared show her face publicly but rather because of the fruits of her efforts.

This month, Moghe has been named ‘African Businesswoman of the Year’ by The New Economy, a reputable London-based quarterly business magazine for “helping turn around several multi-million dollar projects that have dramatically changed the face of Kampala… during a particularly hard time for the global economy following the financial crisis.”

The MD of Kadhar Investments, Amina is behind the imposing Laburnum Courts luxury apartments in Nakasero, Oasis Mall and Kingstone Hardware Store, a top hardware distributorships in Kampala.

Moghe is also currently setting up a sugar plantation and factory in northern Uganda. She apparently “employs over 6,000 people, mainly women, and ensures that they play an integral part in management, as well as actively supporting girls’ schools in and around the city.”

So how did she rise from an obscure conservative Muslim girl in rural Kenya to one of East Africa’s most powerful women entrepreneurs? She told Sebidde Kiryowa how.

Who is Amina Hersi Moghe?


I am 62 years old. I am married (but divorced twice in the past) with three children; a son, 19, who is at university in Kenya with two girls 10 and 12. I lost two children in the past.

My parents were nomads who migrated from Somalia to Bungoma in western Kenya, about 33km from the Kenya-Uganda border in Busia in 1956 when I was a child. As a migrant family, we didn’t have much. We slept in a two-roomed house. My parents used one and we shared the other.

It was a very conservative traditional Somali setting where as young Muslim girls, we were not allowed to be seen or heard. We were not supposed to go out and play with other children.

My father soon started a restaurant and later diversified into the butchery business; selling meat, the two businesses most men in the Somali community understand best.

 Unfortunately, he died when I was nine years old leaving my mother, Sarah Hersi Ali, to take care of us. She was hard working and did a pretty good job taking on and growing the family business.

After Kenya got Independence from the British in 1963, a lot of Indian traders started leaving the small towns for bigger cities because of the opportunities in trade that abounded there for them.

In the process they abandoned most of their commodities trade shops to locals commodities. 

Because my mother was well known in Bungoma town as a business woman, she was one of the recipients of these shops.

So, she diversified into the commodities trade dealing in things like sugar, wheat flour, salt and the like. 
With time, she joined the produce distribution business. She went out to the villages and bought the produce she sold to her customers.

I went to school in Lugulu Girls High School for both my primary and secondary education. But formal education was never a priority for my mother. In fact my mother’s vision for me and my elder sister was never to go far in school but rather to take over the family business as soon as we came of age.

She never went to school herself but had credible business acumen. So, she cared less about our academic performance in class and never even bothered looking at our report cards at the end of the school term. All she wanted was for us to learn the English language and help her out in business.

But then again, that was the norm in Somali culture. Girls were not really encouraged to go to school. After S4 (Standard Four), I dropped out of school. I was 18 and I had gone much farther in school than most Somali girls my age ever did at the time.

Starting out in business

I was introduced to business at age nine after my father’s death. My mother used to give me tasks at her shops and in her other businesses.

She wanted me to master the art and skill of doing business. In secondary school, she would task me to help out in her produce distribution business.

I would to buy maize from the villages and sell it to the Bungoma Cereal Board. 

But in 1981, after dropping out of school, I started business in earnest. My mother at the time was diversifying into the hardware business so she tasked me with setting up it up.

I started the shop in a very small way. My mother insisted that I start with one item – nails because they were on high demand.

It was tough starting out. At times I only sold two units. I would look at the volume of business my mother was doing in her other businesses and it made me feel like a joke.

But mother was always very encouraging. She would ask tell me; “How many kilograms did u sell today?”

Crestfallen, I would respond: “only two.” She would then lift my spirits and cheer me on. “That’s very good for a person who is just starting out. I did not do half as much in the beginning. Carry on,” she would say.

At the time most of the hardware shops in the county sold nails in 50kg and no less.

This was too expensive for the rural folk. So, I decided to sell different sizes of nails in more accessible and affordable units - a quarter, half and one kg. I was the only shop in the western province offering this service.

Thereafter, it was too exhausting to serve the number of people my business model attracted to my shop in a day!

But it also bought me a lot of good will from the people. Because they saw that I cared enough to meet their needs; they started suggesting ideas for the growth of business. Each one would suggest that I bring in a certain item. When I told them I did not have the money to buy the items they were suggesting, they would deposit money with me to procure the items.

I was faithful enough to deliver whatever they paid me to. The shop started to grow beyond nails.

I expanded into other hardware items.  The fact that I had attended Lugulu Girls High School, one of the biggest schools in the region and the country, started working in my favour.

My former schoolmates considered me their sister so they started supporting me.  Those who had moved to, got married or got jobs in Nairobi and other big cities, would entrust me with money to help build either theirs or their parents’ homes back in the village.      

Venturing into Uganda

Around the late 1980s, my mother had already out grown the western province of Kenya and ventured into Nairobi where she had invested in real estate. She had also long ventured into cross border trade, bringing commodities and produce across the border to Uganda.

The economy was in shambles and industries were virtually nonexistent. The country depended on Kenya for virtually everything. She made a killing!

In 1989, Uganda started to experience a construction boom. I had long started trading in Bamburi cement as an agent in my province so decided to venture into Uganda.

I would bring in Bamburi cement by rail and road and sell to hardware dealers like Najja Hardware.

Cement was very lucrative and as an agent, I did not require capital.

In 1994, Uganda started manufacturing cement when both Hima and Bamburi Cement factories opened.
But since I already had a well-established distribution network and huge customer base in Uganda, the former appointed me as their distributor in Uganda.

But even with two new factories, the demand for cement in Uganda far outstripped the supply so I kept on importing my cement from Kenya.

Settling in Uganda; starting Kingstone Hardware

In 1998, I lost two of my daughters aged seven and eight in a road accident in Kenya.  My mother suggested that I move to Uganda following the tragedy.

The family felt that the trauma of the loss would have been difficult to overcome because of constant reminders from sympathizers.

This marked the turning point in my life. I found it easier to settle down in Uganda and my family now had a link that could take care of their business interest on the ground.

At the time the volume of business I was handling in Uganda was also a lot.

Ugandan traders came as far as Bungoma to seek us out because of the overwhelming demand of cement in Uganda. 
Being into the cross border trade, we had accessed external financing and now owned trucks. So, we would deliver to one’s business premises.

When I came to settle, I brought with me 500 train wagons full of cement from Bamburi Cement factory in Kenya.

Now I was faced with a dilemma; I did not know whether the business in Kampala would work out necessitating me to stay longer or I would have to pack up my bags and leave after a short time after failing.

So, I wanted to limit my expenditure on things like office rent, stationary, staff and other over heads.
 I had been taught to be frugal by my mother.

Luckily, when I came to Uganda for the first in 1989, I had dealt with businessman Dr. Sudhir Ruparelia because his Crane Forex Bureau was the only official operator. 


We had maintained this relationship throughout and when he opened his Crane Bank in 1995, we worked with the bank for other financial services.

So, Iater when I found myself in this dilemma, I approached him.

As good will, he offered me a desk in his office which was then at Radiant House on Plot 20, Kampala Road. This came with free phone services, a fax and his workers (whom I utilized at will).

 He also gave me a car – BMW to use. I had come driving a Mercedes Benz with Kenyan registration numbers which had caused more issues than provide a solution because people thought I had a lot of money. 

I stayed in Sudhir’s office for about three months, a time in which I sold off most of my cement. By this time, I had realized that business would work out so I decided to secure my own place in Kyambogo strategically located along the Kampala - Jinja highway on which our cement arrived in Kampala from Kenya.

I opened up Kingstone Hardware Store and continued dealing in cement and other hardware material.
In 1999, we acquired land in the same place and started building our home.

In 2000, we moved in. Over the years, we built a successful distributorship with a monthly turnover of $2m (sh5.3b).

Joining real estate – Oasis Mall, Laburnum Courts


My involvement in real estate was not accidental. My family was already involved in this business in Bungoma and Nairobi.
I had seen how it is done. But then again, there is a direct relationship between hardware and real estate.

I understood building materials from cement to iron bars, plumbing, electrical material and whatever else.

But naturally, I also like challenges. I had conquered the cement distributorship and needed something more. So in the period leading up to the Commonwealth Heads of Government Meeting in Uganda in 2007, government was eager to improve infrastructure and accommodation in Kampala.  

The then Kampala City Council (KCC) allocated a lot plot of land in the city to developers.

Through my business and political contacts, I found out about the four acres of land on Yusuf Lule Road next to Garden City), where Oasis Mall stands. I approached KCC, lobbied for and got it.

At the same time, I noticed that there was a vacant piece of land on Nakasero Road just below All-Saints Cathedral in Nakasero.

It was a valley where those who go to church would park their cars and also come to relax.

Through the Uganda Investment Authority, I wrote a proposal to the president asking him for the land to build 164 top-end fully serviced luxury apartments (a project observers estimated to cost $50m (about ah131.7b).

He agreed to meet me and was fascinated by the idea and my enthusiasm (the president has been publicly expressed his admiration of Hersi’s resolve in business).

He asked me whether I had the money to do what I asked and I answered in the affirmative. 

In truth, all I had was my resolve, a family name in Kenya and a good track record in doing business in Uganda.
I had also built a great network of people I knew could help me pull my dream off. 

The battle to secure financing


After acquiring both pieces of land, I made a business plan. Being exposed and well-travelled, I knew I wanted to build a high-end shopping mall (she refuses to reveal the cost of the project) at Yusuf Lule Road targeting a certain group of people. I knew I needed an anchor tenant. So, I decided to go back to Kenya and talked to top companies.

I approached Nakumatt, a top Kenyan supermarket chain, and asked them if they would be interested in taking up custom-made space in a new mall I planned to set up in Uganda. They looked at my plans and decided to come and checkout the area. They did; thrice and liked the place. They suggested a few adjustments which I made. I then asked them to commit themselves in signing. They did. 

I then went to Kenya Commercial Bank (KCB), Equity bank, Mr. Price; seven clients in total and did the same before I even got one Ugandan company on board. I then drew architectural plans with all their specifications in mind.

For Laburnum Courts, I approached corporate companies, embassies and other clients and told them I would give their employees a different service – luxurious serviced apartment units with a swimming pool, health facilities, children’s playing area, business centre, restaurants and gym. I told them I would do their laundry.  

I then approached several local banks with my architectural plans of both projects (I was going to pursue both projects simultaneously) and a list of signed commitments from clients and told them I had a thriving hardware business too so I had no risks.

After doing risk assessment, most local banks were uncomfortable with the fact that I had never undertaken a project of this magnitude.  Some said I could not build a shopping mall that size near another one; it just could not work out. 

Others wanted me to give up one project for another but I insisted on pursuing both at the same time because to me, they were about something different. Using our impressive real estate empire in Kenya as collateral, my mother approached Barclays Bank, Kenya and they agreed to bank roll the projects (she refuses to divulge how much was given).

The going gets tough

Before these projects, I had had it relatively business. My mother is the one who had had it really rough. But these two projects were not just taxing and challenging, they were nearly impossible.

First of all, I had expected that being in the hardware business, I had expected to make some money by supplying myself with the material. However, the demand for building materials in the period leading up to CHOGM trippled because there were so many people building to beat the CHOGM deadline.

The cost of the project we had project was surpassed by far which meant that the projects would take much longer to be completed than had been expected. They would also require more money.

Meanwhile, the commercial banks started torturing me mentally. They did not want to listen to any excuses about setbacks.

They wanted their money!

I felt like I was at sea at the boat I which I was capsizing. I knew I was drowning and I dreamt about this over and again.  But I knew I had to swim because everything we had worked as a family was at stake here. It would take a lot of effort and will power to stay afloat.   

I had to run to the PTA Bank to rescue me. (Also known as the Eastern and Southern African Trade and Development Bank, PTA Bank is a trade and development financial institution. It is the financial arm of COMESA (Common Market for Eastern and Southern Africa).

Being a development bank, they finance long-term projects and understand that you cannot pay back fast. They listened to me and paid off the loans of the commercial banks. They also gave me more money (she won’t reveal but it is reported that bank invested about $16m – sh42b in the project). 

Ripping the fruits of her efforts


In 2009, we opened Oasis Mall, a 40,000sq ft, shopping mall, because it was going to be the cash cow. Besides, it was less complex.  This was Nakumatt’s first outlet in Uganda and clients were blown away by the 24 hour-service. The mall is fully rented out.

The apartments took more than eight years to complete because the works were complex. The first phase was completed in 2011 while the second phase was completed last year. The apartments have up to between 60-70% occupancy.
Future plans

In January, we started working on a sugar milling project in Gulu partnership with Turnkey Solutions, an Indian company that makes fully automated sugar plants and sugar refineries. company who will build the plant. We have already cleared 3,000 acres of bush and are soon starting to plant sugar cane. 

We aim to employ over 1,500 people directly with over 5,000 out growers. We are working in partnership with the Gulu Women’s Entrepreneurs Association to develop the districts of Amuru, Atiak, Kamdin and Noya (refuses to disclose the cost of the project).   
What makes her tick?

As a part of my upbringing, I was taught to be very cost-conscious in everything I do. I have been taught the value of being frugal; avoiding extravagance.

My work ethic: I believe in the moral benefit and importance of work and its inherent ability to strengthen character. I have taught to sleep early and wake early.

I network a lot with people I know will help me – politicians and businesspeople. You cannot do business when you have no relevant connections.

When I am convinced about something I am doing, I do not take “no” for an answer. If you say no to me, I will knock on the next door.

I believe a lot in God. I believe you cannot do much without his consent.  

Challenges of doing business as a woman

(Laughs) Actually, I don’t think I would have come so far in business if I was a man. Being a woman, rather work against me, has actually opened doors for me and I thank God for it. Societal expectations of me are not as high as the men and that is why everything I achieve looks so extraordinary. The only exception was when banks had reservations about trusting me, as a woman, with so much money. 

Besides, I have always been in business so I hardly notice the so called domination by men because I regard us all to be equal. What matters is how well one is able to adapt to the changing environment and take advantage of opportunities that may arise.   

The cost of finance in business is very high. The high interest rates on bank loans are higher than the rate of return on business and this is prohibitive to growth and expansion in our line of business.
Other Awards

•    In 2008, Moghe was named Woman Investor of the year Award by the Uganda Investment Authority for concurrently building two land mark projects: Laburnum Apartments and Oasis Mall.

•    In 2012, she was awarded Best Woman Entrepreneur by the Uganda Women Entrepreneurs Association Limited (UWEAL).

•    In 2013, she was awarded the Moran of the Burning Spear (MBS) by Kenya’s former president Mwai Kibaki for her zeal and determination in fostering regional business. 


Diamond tips

•    First of all decide on what line of business you want to pursue and take charge of it personally. Do not delegate because you the person who knows and best understands your vision.


•    As an entrepreneur it is crucial that you are financially disciplined. Be frugal and do not spend extravagantly. Instead, save your money and make it reproduce.


•    Be trustworthy so that people can believe in you. In business, you lie once and it will cost you your reputation amongst clients and customers. The best way to do this is to avoid making promises you can’t keep.


•    It’s vital that you are passionate about the business you pursue. It is very dangerous to jump on to a bandwagon because you think the business is lucrative.


•    Hard work and patience. There is no business that does not get challenges. But that does not mean it is not going to work out. Many people abandon their dreams when the going gets tough just when success is around the corner! 


•    As an entrepreneur, don’t let success get to your head and become arrogant. That could be your downfall. The way you relate to people ‘beneath’ you matters. Be approachable and learn to listen to everyone.
Additional reporting by Elvis Basudde
 

(adsbygoogle = window.adsbygoogle || []).push({});