By Denis Jjuuko
The majority of Ugandan entrepreneurs who started making real money in the 1960s, 1970s and even mid 1980s are on their way out. Age has finally caught up with them. Until super effective anti-ageing drugs are invented, there isn’t much they can do about it. It is a natural thing. They must embrace it.
There is, however, an interesting trend for many of these ultra-wealthy individuals. Their children are fighting over the estates and companies. Every few months, stories emerge where children are fighting their parents or siblings over the control of the vast wealth these people possess. Some of them accuse their surviving parents and siblings of unspeakable stuff.
If they aren’t doing that, they are trying to shortchange each other. Many times, where the parents are still alive, there isn’t much they can do. They are either too old or sick to fight. Some prefer to ignore the issues and leave the children to fight once they (parents) are long dead.
Solutions have been offered such as watertight wills and creation of trusts. Inheritance laws have been amended from time to time but the fights are emerging more than ever. Wills are disputed. Trusts are largely a new thing in Uganda and we may have to wait to see how that pans out.
For now, courts are full of siblings going for each other’s necks over assets. Newspapers are carrying the stories. Surviving parents must be having sleepless nights over what they need to do to avoid the same challenges the families of their peers are going through.
Traditionally, parents have largely given out the significant part of their wealth when they are dead. That is why wills are disputed where they exist. Some who think they should have received more are always unhappy.
I have previously argued that parents especially those who are lucky enough to age and/or suffer long illnesses could give out their assets when they still can. If one is suffering from a disease that won’t be cured, what is the purpose of holding large swathes of land till death? Why not give them out to the people you intend to give them to? The recipients may be unhappy, but you will still be alive to explain your decisions if you have to. And most likely, those decisions will be honored or there will be time for the beneficiaries to take full ownership. A small percentage can be kept for the benefit of the surviving parent.
But for those running sizeable businesses at least by Ugandan standards, there is a need to ensure the businesses are properly run and then listed on the securities exchange. This means that the children don’t necessarily have to run the business as they may not be interested. They may also lack the skills and tenacity required to run the business.
Being the child of a founder doesn’t necessarily mean that they (children) inherited the skills required. In Uganda, many founders who are aging today didn’t come from a lot of money. They worked their backs off to establish the empires they own today. Many times, children from money grow up pampered and shielded from the realities of the environment in which they are supposed to thrive once their parents are gone.
They are also growing up in the era of social media where flexing is the order of the day. Pretending to be rich is something that many people wish to do. The high-end lifestyle collapses the businesses.
Yet listing the businesses and having proper management teams running the business can ensure that kids enjoy the lifestyle they have always wanted while not burdened with the intricacies of running a business. They don’t have to wake up at 5.00am on a daily to ensure things are working. At an offer of a good salary, somebody can do that for them willingly and diligently.
They can attend a few meetings a year or simply wait for their annual or bi-annual dividends. They can live the life they all desired. It is much better than unbundling the empire into small business units with different ownerships that end up unsustainable on their own.
The writer is a communications and visibility consultant. djjuuko@gmail.com
