Lessons from Ssebaana Kizito as a successful businessman

Jul 10, 2017

Uganda has witnessed a plethora of companies closing shop upon the demise of their proprietors

By Mike Ibrahim Okumu, PhD

Uganda's tumultuous history from 1972 to 1986 meant difficulty in setting up business empires over a long haul. Indeed by 1986 the economy was more or less at rock bottom. The effect of which was that even the basics of household consumption goods such as soap, cooking oil or even sugar were being imported from the neighboring countries. Furthermore, even with importation of stocks these were inadequate. Allocation Committees were set up to ration the basic necessities of livelihood.

However, post 1986; some business empires recovered from the political and economic downturn of the time. What comes to mind is the Madhvani Group, Mehta Group, Mukwano Group, Sure Group/Statewide Insurance Company (SWICO) and Mulwana Group of companies/Nice House of Plastics. The first two were operational before independence. While Sure Group, Mukwano Group and Mulwana Group were born after independence.

Apart from the Mukwano Group, the brain child of all the other Groups of companies have passed on. For the Mulwana Group, management is under the second generation with the jury still out although there is already some gains as the Nice Plastics/Batteries/ Jesa milk brand have increased their market presence. For the Sure Group though, the second generation is yet to effectively take on the mantle. While both the Madhvani Group and Mehta Group have successfully overseen at least two generations take on the mantle of directly managing the business entities that have since turned global.

To successfully have the likes of the Madhvani Group and Mehta Group survive over two generations of management suggests an environment that allows for inter-generational transfer of business management and innovation skills besides buying the next generation into the core of a Group's business.

For example; both Jayant and Manubhai after attaining their university training in India and England, joined their father Muljibhai Madhvani actively in business in 1946. By the time Muljibhai died in 1958 the two sons had accumulated 12 years of mentorship and growth into the business. The post 1958 Madhvani Group expanded locally, in East Africa and globally.

Furthermore, after the death of Jayant Madhvani in 1971, Manubhai oversaw the growth of the Madhvani Group till his death in 2011 at which point Mayur another of the Muljibhai's sons took control of the group till today. Post Mayur; Nitin and Kamlesh who are Directors are waiting in the wings to take charge. Post Nitin and Kamlesh; the likes of Ronnie, Nikesh, Rikin among others are equally waiting in the wings. Besides, they are actively engaged in expanding the Madhvani empire world-wide.

Clearly, the Madhvani Group has a realistic chance of surviving for more generations. Key to this is engaging younger family members in their family businesses. Other than the Madhvani Group, today the Mukwano Group is under the leadership of Ali Khan under his father's tutelage suggesting the survival of the Mukwano Group in the long term.

This brings me to the Sure Group whose chairman Mr. Ssebaana Kizito passed on last week. Indeed, while I was not aware of Ssebaana's children, I got to learn about them in the Daily Monitor of 4thJuly, 2017. This Daily reported that even in the evening of Ssebaana's life, his children continued to work abroad carrying on with their professions which is typical of wealthy indigenous Ugandans.

The wealthy indigenous Ugandans with the ability to set up business empires invest heavily in the education of their children both locally and internationally. They rarely engage their children in the day to day management of their businesses. They consider it to be corrupting. The effect of which is that such children become: 1) job seekers as opposed to entrepreneurs and 2) unable to transfer relevant knowledge and new efficiency into their family businesses.

Indeed, while Mr. Ssebaana has been a successful businessman, it will be interesting to see how the next generation takes over. As it is, the survival of the Sure Group of Companies and consequently Mr. Ssebaana's business legacy is in the hands of Mr Joseph Kiwanuka his dependable business partner. He has been Mr. Ssebaana's age-mate. Mr. Ssebaana's children who up until today have been at arm's length with the day today management of the business empire are pursuing their successful careers abroad (Daily Monitor of 4th July, 2017).

While a Will (if it exists anyway) could define who will take on the mantle at Sure Group of Companies, the inability to substantively engage Mr. Ssebaana's well educated and globally exposed children in the succession or transition process towards the evening of his successful business career could suggest uncertain times for the survival of the Sure Group.

Indeed, Uganda has witnessed a plethora of companies closing shop upon the demise of their proprietors. For example, Kiira Construction Ltd the biggest road construction company in the 1970's closed shop upon the demise of its proprietor Mr. Mulyagonja the father of Justice Irene Mulyagonja (the current IGG). Similarly, Zzimwe Construction Ltd was a renowned entity in road construction at least in Kampala; however, the death of Andrew Kassaga seemed to have sealed its fate and indeed it is an unknown quantity today.

Unlike Zzimwe and Kiira Construction Ltd, to the advantage of the Sure Group is that the Managing Director of SWICO a flagship company within Sure Group Joseph Kiwanuka is still able to serve. We hope he will succeed in managing the transition process given that Joseph Kiwanuka is of age.

The importance of actively managing the succession process by involving the next generation in the day to day business processes and networks, is that it allows the business empire to seamlessly operate beyond the life span of the current chairman/leadership. The effect of which is that, the next chairman/leadership is not bogged down with understanding the mechanics of the business empire, rather, straight away engages in either strengthening existing structures or focuses on business expansion.

In doing so, indigenous Ugandans would have a realistic chance of growing business empires similar to the Madhvani Group and Mehta Group that can survive over different generations with the likelihood of going global. Besides, local companies would be able to grow local capacity to take on government infrastructural projects and create more jobs outside public service. For instance if Kiira Construction Ltd could undertake the construction of highways from Kampala to Jinja to Tororo during Obote 1 and Amin regime; had the company survived the death of its proprietor; may be we wouldn't be complaining about the current suffocation of Ugandan firms by Chinese construction companies that are associated with external multiplier effects on fiscal policy. Also, the intergenerational survival of business empires can have a demonstration effect on new entrepreneurs and growth of family businesses with a perpetuity perspective.

Finally, as we celebrate Ssebaana's life it is my humble wish that his business legacy survives the test of time as Uganda needs Sure Group/SWICO to survive in perpetuity. More importantly, that the Ugandan business leadership reflects seriously on how to cater for the inter-generational survival of their businesses. Kenya, Egypt, India and the Western countries provide good examples in this regard.

The writer is a lecturer at the School of Economics, Makerere University

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