Nkumba Business Journal Volume 17, 2018 NKUMBA UNIVERSITY 2018 1 Editor Professor Wilson Muyinda Mande 27 Entebbe Highway Nkumba University P. O. Box 237 Entebbe, Uganda E-mail: [email protected] [email protected] ISSN 1564-068X Published by Nkumba University © 2018 Nkumba University. All rights reserved. No article in this issue may be reprinted, in whole or in part, without written permission from the publisher. Editorial / Advisory Committee Prof. Wilson M. Mande, Nkumba University Assoc. Prof. Michael Mawa, Uganda Martyrs University Dr. Robyn Spencer, Leman College, New York University Prof. E. Vogel, University of Delaware, USA Prof. Nakanyike Musisi, University of Toronto, Canada Dr Jamil Serwanga, Islamic University in Uganda Dr Fred Luzze, Uganda-Case Western Research Collaboration Dr Solomon Assimwe, Nkumba University Dr John Paul Kasujja, Nkumba University Prof. Faustino Orach-Meza, Nkumba University Peer Review Statement All the manuscripts published in Nkumba Business Journal have been subjected to careful screening by the Editor, subjected to blind review and revised before acceptance. Disclaimer Nkumba University and the editorial committee of Nkumba Business Journal make every effort to ensure the accuracy of the information contained in the Journal. However, the University makes no representations or warranties whatsoever as to the suitability for any purpose of the content and disclaim all such representations and warranties whether express or implied to the maximum extent permitted by law. The views expressed in this publication are the views of the authors and are not necessarily the views of the Editor, Nkumba University or their partners. Correspondence Subscriptions, orders, change of address and other matters should be sent to the editor at the above address. 2 Editorial Nkumba Business Journal consider business from a multidisciplinary perspective. Volume 18 carries articles on a variety of topics in categories of business, higher education management, public policy, social development and religion. Business. Article by Sserwambala and Mwirumubi explored the relationship between financial intermediaries and financial institutions in Uganda. They concluded that this relationship is very important. The research by Rukanyangira, Mawa and Mande confirmed that quality of products contributed significantly to the competitiveness of a firm, especially in a manufacturing sector in Uganda. The theme of decentralisation public policy was analysed by Muzoora. In the paper by Nandala, it is pointed out that pricing works of art was still weak in Uganda. Education Management. Mande’s paper on corporate governance and sustainability of universities in Anglican Church of Uganda urged the concerned parties to consider adopting the consortium approach. A better pricing model is proposed for adoption by Ugandan fine and commercial artists. The photography pedagogy was analysed by Nsamba and Yiga. Joyce Bukirwa, in her paper, highlights the concept of formative assessment at universities in Uganda. The paper urges universities to improve assessment for purposes of learning. In the paper by Serunjogi and Mande the contribution of management development to quality in primary education was analysed. It was concluded that such programmes were good but needed to be improved upon. Social Development. In the area of social development Mande argued for the adoption of a communitarian servership ethic in the control of HIV/AIDs especially among the youth. In the same broad area, Kato and colleagues explored the influence of overcrowding on change of 3 sexual behaviour among inmates in Uganda. This study recommended allowance of conjugal space to inmates if they are keep the sexual behaviour that is accepted by their communities. In Kateete, Yiga and Schawelka the importance of the image of Virgin Mary for a local Christian community was described in meticulous details. I invite all those interested in researched analysis to read the papers contained herein. Wilson Muyinda Mande Editor 4 CONTENTS THE RELATIONSHIP BETWEEN FINANCIAL INTERMEDIATION AND FINANCIAL INCLUSION IN UGANDA Lawrence Sserwambala and Richard Mwirumubi ..................................... 7 QUALITY OF PRODUCTS AND COMPETITIVENESS IN THE MANUFACTURING SECTOR IN UGANDA: A CASE OF UGANDA CLAYS LTD. Nazarious Rukanyangira, Wilson Muyinda Mande, Michael Mawa ...... 47 THE IMPACT OF DECENTRALIZATION ON GOOD GOVERNANCE IN UGANDA Amon Reeves Muzoora ................................................................................ 64 INTRODUCING VISUAL art to THE market: The VARIATION of pricing styles in UGANDA’S LOCAL ART MARKET Mike Nandala ............................................................................................... 95 CORPORATE GOVERNANCE AND THE SUSTAINABILITY OF UNIVERSITIES IN ANGLICAN CHURCH IN UGANDA Wilson Muyinda Mande ............................................................................. 127 PHOTOGRAPHY PEDAGOGY AND SALVAGING THE ENCROACHED WETLANDS IN UGANDA A CASE STUDY MASAKA AND RAKAI DISTRICTS Deo Nsamba and Andrew P. Yiga ............................................................ 157 THE EFFECT OF MANAGEMENT DEVELOPMENT ON THE PERFORMANCE OF PUBLIC PRIMARY SCHOOL HEADTEACHERS IN NAKASONGOLA DISTRICT – UGANDA Charles D. Serunjogi, John Ssekamwa and Wilson Muyinda Mande ...... 174 ASSESSMENT FOR LEARNING IN UGANDAN UNIVERSITIES Joyce Bukirwa Sessanga .............................................................................. 185 INFLUENCE OF OVERCROWDING ON CHANGE IN SEXUAL BEHAVIOUR OF INMATES IN PRISONS OF UGANDA Damiano Kato, Miph Musoke and Robina Mirembe ................................ 192 5 ADOPTION OF AN ETHIC OF COMMUNITARIAN SERVERSHIP IN CONTROLLING HIV/AIDS AMONG THE YOUTH Wilson Muyinda Mande ............................................................................. 215 OUR LADY OF THE ASSUMPTION PARISH CHURCH MITALA-MARIA: UNDERSTANDING THE VIRGIN IN THE CONTEXT OF THE DEIFIED HEROINE Jude Kateete, Andrew P. Yiga, Karl Schawelka, ....................................... 234 Note to Contributors ................................................................................... 250 6 THE RELATIONSHIP BETWEEN FINANCIAL INTERMEDIATION AND FINANCIAL INCLUSION IN UGANDA Lawrence Sserwambala and Richard Mwirumubi, Abstract The study analyzed the relationship between financial intermediation and financial inclusion in two Ugandan town councils, namely, Wakiso and Kiboga Town Councils. The study was necessitated by increasing efforts of financial intermediation by various actors although the number of people who are excluded in the usage of financial services has reduced. Mixed methods were used in conducting this study that was guided by the theories of financial intermediation. In order to make sense of the expectations and perceptions of the participants, both research questions and hypotheses were used, which provided a platform to understand the meaning that people attach to the experiences gained in relation to the advanced theories of financial inclusion. With a targeted population of 9,880 potential respondents, a sample size of 384 was computed using purposive and simple random sampling. The results from the hypothesis test sought to determine whether there is a relationship between financial intermediation and financial inclusion which showed that, there is a significant and positive relationship between the financial intermediation and the Financial Inclusion (r = .381**, p<.01). These results show that the greater the capacity of the institution to deliver financial services, the greater the number of persons that will be served by the financial services of the institution and hence, higher levels of inclusion. If a financial institution opens up more branches in an area that was not previously served, the possibility of bank customers that have not prior been served by financial intermediaries to access these financial services will greatly increase. Furthermore, the increase in the volume of the services that are offered in an area would mean that the people who have access to the financial services have a greater level of satisfaction of the financial services, hence supporting hypothesis (H1) which states that there is a positive significant relationship between financial intermediation and financial inclusion. Introduction This study focused on the relationship between financial intermediation and financial inclusion in Uganda with Kiboga Town Council in Kiboga District, and Wakiso Town Council in Wakiso district as case studies. These 7 two areas of study were chosen to help cast a picture into how financial intermediation can impact on financial inclusion. Besides, the two areas share a common characteristic namely, the high levels of mobility which greatly affects the confidence that is pivotal in the continued usage of financial services. The two areas have equally a high volume of usage of informal financial services compared to the formal ones. It is for this purpose that the study was limited to formal financial intermediaries that are regulated by the Bank of Uganda. Those financial institutions that fall under Tiers I–III include Commercial Banks, Credit Institutions and Micro-Finance Deposit-Taking Institutions. Non-financial intermediaries are regulated by their Apex Organizations such as Insurance Firms among others. Uganda has witnessed a rapid and significant growth in financial services development characterized by increased growth in the number of financial intermediaries