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Africa Rising

Uganda needs a caffeine fix: insights from Vietnam’s coffee market success

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Until recently Vietnam and Uganda shared a similar trajectory in the development of their coffee sectors. Today, Vietnam has emerged as the second largest coffee producer in the world. In Uganda, poor agricultural inputs and a failing institutional environment have resulted in low yields and slower development of the sector.

Drying coffee beans in Bugitimwa village, in the area of Mt. Elgon, eastern Uganda.

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In January 2017, world coffee exports already amounted to 9.84 million bags. As one of the most extensively traded agricultural commodities, coffee trade has an interesting structure given the fact that it is exclusively produced in developing and emerging markets. In fact, it’s estimated that 25 million small holder farmers are responsible for 80% of overall coffee production. But nearly all the 2.25 billion cups of coffee consumed every day are drunk in the developed world.

In the 1980s, Uganda was one of the largest exporters of coffee, responsible for about 2% of the world’s coffee supplies. In 1980 it was producing approximately 2.1 million bags compared to Vietnam’s 77 thousand bags. At this time Vietnam hardly exported any of its produce.

Now the tables have turned. Vietnam is one of the world’s top coffee exporters, accounting for over 18% of global coffee exports, while Uganda’s has stagnated to between 2% and 3%.

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What’s interesting is that since the 1980s the development of the sectors in both countries followed similar trajectories – from heavy regulation through various policy reforms in the 1990s, to being relatively deregulated today.

But one fundamental difference stands out – productivity. Vietnam has far outperformed Uganda over the past two decades due to its levels of productivity. This is down to the use of agricultural inputs for production, particularly the quality and quantity of fertiliser and machinery.

Uganda’s low yields

Coffee has been an important export for Uganda since it was introduced to the country in the 1900s. In 2015 it contributed 17.76% of Uganda’s total value of exports.

The Coffee Marketing Board, established in 1930 to regulate the coffee sector, steadily gained powers until it eventually held a state monopoly over the coffee industry following Uganda’s independence in 1962.

Between independence and the early 1990s the heavily regulated industry faced numerous challenges as a result of poor governance. It was eventually dismantled in the 1980s and 1990s and the sector became fully liberalised.

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Today the coffee industry in Uganda is dominated by a large number of smallholder farmers, each with about 0.5 – 2.5 hectares of land. It’s estimated that about 1.7 million households are engaged in coffee production. In 2010 this amounted to a total of around 182,875 hectares under production, compared to 549,100 hectares in Vietnam. Middlemen are needed to collect the small quantities of coffee produced by the multitude of farmers.

The large number of smallholder farmers is not a problem in itself. The challenge is that they produce very low yields per hectare. This coupled with relatively high transportation and processing costs are the main reasons that Uganda’s coffee production has stagnated.

Vietnam’s rise

Like Uganda, 85%-90% of the coffee in Vietnam is produced by smallholder farmers, who had 670,000 hectares of agricultural land under coffee production in 2015. Today, Vietnam is the second largest coffee producer after Brazil, producing 27.5 million bags of coffee in the 2015/16planting season. Since 2007, coffee has become the country’s second largest source of export revenue.

Coffee was first introduced to Vietnam in 1857. It took until 1989 for increased production and regular trade in coffee to take off. Like Uganda, the increase in Vietnamese coffee production also followed the implementation of policies and reforms that liberalised the sector. For example, reform of land administration meant stronger property rights, allowing individual producers to own the titles to their land.

In addition, progressive dismantling of state-owned enterprises broke up the monopoly on agricultural trade.

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And Vietnam put in place a number of interventions to address productivity levels. This resulted in Vietnam’s agricultural production being far more capital and input intensive than Uganda’s resulting in higher yields per hectare. For example, in the 2005/2006 planting season, Vietnam had 257 tractors per square kilometre of arable land, compared to Uganda’s 9.

Equally important is fertiliser use. For the years that data is available, it appears that Vietnam was using 300 times more fertiliser than Uganda, per hectare of arable land. Fertiliser use has a significant impact on the yield per hectare.

For its part, Ugandan productivity has been poor. Uganda’s 2008 agricultural census shows that the yield gap from low input use in the coffee sector amounts to 2734kg/hectare. This means that on average, farmers are producing 396kg/hectare when they could be producing 3130kg/hectare.

Determining quality

This phenomenon of low input use isn’t confined to Uganda’s coffee sector. It’s a systemic feature of Uganda’s agricultural sector at large. For example, recent research on maize inputs showed major shortfalls in quality. The findings showed that 30% of nutrients were missing from fertiliser, and hybrid seed contained less than 50% of authentic material at retail level.

Although no similar study has been conducted for the Ugandan coffee sector, there are numerous examples that can be used as reference, particularly since the introduction of new higher yielding varieties of coffee plants. For example, in 1992 the government launched a national coffee replanting programme to replace old coffee trees with newer, higher yielding varieties. The programme was ended in 2004 due to the low survival rate of the plantlets.

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Uganda’s untapped potential

There are, of course, other theories and reasons that further compound the differences between the two countries. One is that Vietnam is deemed to have a far more conducive environment for setting up businesses than Uganda. And the Vietnamese government’s assistance to the agricultural sector since the 1990s has been more supportive, helping the coffee sector withstand negative shocks due to weather and price volatility than has been the case in Uganda.

Notwithstanding these differences, the success of Vietnam’s coffee sector hints at the untapped potential that lies in Uganda’s coffee industry. To achieve similar growth, it’s imperative to improve productivity via increased and improved agricultural inputs, fostering a supportive business environment and adopting newer technologies for smallholder farmers.

 

 is a Senior Country Economist, International Growth Centre

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Africa Rising

Sudhir soars despite takeover of Crane Bank Limited

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October 20, 2016, is the day when central bank took over the management of Crane Bank Limited and later sold to DFCU. Many wrote off the property mogul Mr Sudhir Ruparelia claiming that in few years he will be wiped out in Ugandan business.

Three years after the takeover, the city business man has since continued to soar. He has won three cases against the bank of Uganda.

What has helped Sudhir remain on top despite the Crane Bank setback is the art of diversification, and close supervision of all investments, and involving his now grown up children in the management of the business empire.

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Today, we bring you the over 20 companies under the Ruparelia bag that have kept this group flying despite the turbulence that hit their then high-flying flashship brand, Crane Bank, which at the time of its closure was Uganda’s number two financial service facility. Sudhir has divested in various sectors over the years in banking, insurance, hospitality, conventions and leisure centres, education, real estate and floriculture. Most of these companies are leading players in their respective areas.

1. PROPERTY DEVELOPMENT AND MANAGEMENT

Crane Management and Meera Investments, are two companies that have made Sudhir and his family Uganda’s largest private property owners, managers and developers for commercial and private real estate. The companies invest in office buildings, retail centres, industrial facilities, residential units, development projects among others.

CRANE MANAGEMENT SERVICES which has been in existence since 1996 is a professional property management company which manages a large portfolio of properties within Kampala and in towns like Jinja, Mbale, Mbarara to name a few. It manages all kinds of properties from commercial, industrial, residential to office blocks.

“C.M.S. is responding to the need of professional management services in the real estate sector at a time when Uganda is experiencing spectacular development within the real estate management industry,” says the group’s website.

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On the other hand, MEERA INVESTMENTS was established in 1994. Its niche is innovative ideas in real estate, particularly in property development and construction.

“Meera Investments LTD, embraces effective and efficient solutions in all aspects of property development from design to finish, to achieve maximum usage and productivity, which makes us the biggest landlord and the leading property developer.” Says the group’s website.

2. INSURANCE

Ruparelia Group’s Gold Star Insurance Company is a significant player in the Ugandan insurance market. The Company began operations as early as 1996 when the Ugandan populace by choice did not insure their property and the regulatory body was still in its infancy. This however did not deter the company’s growth and development into a leading insurance company in the country.

3. HOSPITALITY, CONVENTIONS AND LEISURE

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The Ruparelia Group runs some of Uganda’s largest and finest hotels and resorts serving both the luxury and budget market. The Group offers the ultimate in luxury accommodation, leisure facilities and the finest conference and business meeting venues in Uganda, along with related businesses including a rafting company.

All Ruparelia Group hotels and resorts are situated in the most strategic locations and offer an array of luxury services, intense hospitality, modern amenities and business facilities.

Munyonyo Commonwealth Resort is the front-runner in the Ruparelia Group Leisure and Hospitality business.

This leading 5-star resort is set on 90 acres in the Speke Resort complex, close to business, shopping and entertainment centres. The comfort and convenience offered by the Resort has attracted several high-profile visitors, from heads of state and foreign dignitaries to international celebrities.

Ruparelia Group’s Leisure and Hospitality business also features Kabira Country Club, an exquisite facility in Kampala that combines short and long-term residential accommodation and conference facilities with the most prestigious health, fitness and leisure complex in Uganda.

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Tourist Hotel features a modest blend of all Ruparelia Group’s deluxe accommodation, conference and leisure facilities into an economically mindful package, with no compromise to service, convenience and comfort. The hotel is located in a busy business centre in Kampala and offers a choice of 70 comfortable rooms to the discerning businessperson and tourist at budget prices.

Speke Hotel, another in the Ruparelia Group line, is one of Kampala’s oldest hotels and offers all the charms of bygone days complimented by efficient, modern services and facilities. Speke Hotel is located in the heart of Kampala, close to banks and business centres. Dolphin Suites and Speke Apartments offer overnight accommodation and holiday apartments to travellers in Kampala for rent on a daily or monthly basis.

Others are: Forest Cottages in Bukoto and Speke Resort Bujagali Falls.

4. EDUCATION

Ruparelia Group’s undertakings in education are substantially influential in Uganda’s education sector.

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With schools at the elementary and high school level, all the way up to the local and international University level, the group has offered world-class education services in all disciplines to students of multiple nationalities and backgrounds. These include Kabira International School, Kampala Parents’ School and Victoria University.

5. MEDIA

88.2 SANYU FM

Sanyu FM is the pioneer private FM radio station in East and central Africa, broadcasting with a footprint of 100 KM radius around Kampala, on the frequency of 88.2 Mhz, and another 100KM footprint around Mbale, on the frequency of 96.4 Mhz.

The Station has over its 20-year existence maintained its position as a leading radio station in Uganda with its strength rooted from the unique, clearly differentiated mix of music, top-notch presenters and hourly news updates.

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6. FLORICULTURE

Ruparelia Group has had far-reaching success in the floriculture market in Uganda and the companies have made a name for themselves as front-runners in the industry. The farms not only excel in the production of a multitude of premium high-quality rose varieties but also in exports, commanding over 35% of the rose-export market in Uganda.

PREMIER ROSES

Premier Roses — located in Entebbe, Uganda —produces the highest quality of exclusive roses in the world while maintaining its status as top exporter of cut roses in the country.

Focused on meeting the high standards of Good Agricultural Produce (GAP), and placing great importance on economic, social and environmental sustainability, Premier Roses aims to achieve improved efficiency of natural resources and environmental conservation, reduced use of agrochemicals, and conservation of existing environmental habitats.

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ROSEBUD

Based in Entebbe, Uganda, Rosebud Ltd is the country’s largest exporter of roses commanding around 35% of Uganda’s rose-export market.

Utilizing ultramodern equipment, the company’s highly skilled employees use their intimate knowledge and love for roses to produce at a mass scale with a watchful eye for the quality and delicacy of the crop.

The greenhouses cover a total of 42 hectares producing and exporting over 9 million stems per month.

7. PREMIER RECRUITMENT LIMITED

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Premier Recruitment is located on the 1st Floor of Crane Chambers and is a recently incorporated company licensed for external recruitment. The agency is also part of UAERA.

Premier Recruitment has a commitment to helping decrease the high level of Ugandan unemployment by providing opportunities for Ugandans here in Uganda and abroad.

8. RUPARELIA FOUNDATION

You can say this is one SPEND project for the Group. One which gives back to the community. The Ruparelia Foundation works to improve and promote health, education, sports, general welfare, poverty eradication, improve livelihoods, support the welfare of wildlife and preservation of the environment by fostering partnerships among businesses, corporations, with the government, non-governmental organisations and individuals.

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Africa Rising

Bank and partners prioritise the African Education Fund

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The African Development Bank (ADB), the Association for the Development of Education in Africa and the African Union are recommending the establishment of the African Education Fund to address the challenges of education and skills development in Africa.

A joint declaration in support of the African Education Fund was produced after a workshop organised in Abidjan.

“The African Education Fund is a vision many education stakeholders in Africa have had but could not put into practice. It is no longer just a vision – it is a reality,” Oley Dibba Wadda, the Bank’s Director of human capital, youth and skills development, told more than 50 attendees representing 12 African governments, 4 regional economic communities and other development partners specialising in finance, skills development, and education.

Workshop organisers sought inputs from regional member countries on the structure of the African Education Fund and highlighted the need to strengthen its position as a ‘go to’ resource for financing education across the continent.

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“The AEF is a unique, Africa-initiated and continental mechanism for resourcing post-secondary education in Africa” said Albert Nsengiyumva, Executive Secretary of the Association for the Development of Education in Africa.

Beatrice Njenga, Head of the Education Division at the African Union Commission, reminded workshop participants that the Fund was not intended to be a substitute for existing funding mechanisms. “The African Education Fund complements these mechanisms at national and international levels”.

Côte d‘Ivoire’s Minister of education and technical, vocational education and training, Kandia Camara, opened the workshop, emphasizing the need for countries to be accountable and to take ownership of Africa’s education and training. Camara also encouraged participants to pay special attention to supporting girls and people with disabilities in the structure of the fund.

The two-day series of presentations, discussions and group sessions explored strategies for financing projects intended to contribute to human capital and skills development across Africa under the banner of the African Education Fund.

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Africa Rising

Uganda’s movie on Genocide “ 94 Terror” scoops 18 nominations in Golden Movie Awards Africa

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By Our Reporter

Uganda is doing well in the 2019 Golden Movie Awards Africa (GMAA) after a film on Rwandan Genocide ‘94 Terror’ received at least 18 nominations in this year’s Awards edition.

The film that was released last year is also set to compete in the best movie category with ‘Azali’ which also has 18 nominations, ‘Levi’, ‘Diamonds in the Sky’, ‘Sylvia’ and ‘Adoma’.

Some of 18 categories in which the movie is nominated include best costume and screenplay among others.  The movie consists of an only Ugandan cast with actors like Ms. Jojo Nitah, Ms. Ronah Ninsiima Solidad, and Mr. Smith Mateega among others who were also nominated in different categories. Mr. Rwamusigazi Kyakunzire who did Cinematography for the film was also nominated for best cinematography.

The film that features Shema a Hutu and Mutesi a Tutsi shows a story of peers from rival tribes who they brave a risky journey to escape to Uganda amidst 1994 Rwanda genocide despite their tribal differences.

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The Golden Movie Awards seek to honor outstanding achievement in the African television, digital media and film industries and is administered by the expert in the Cinema & Television, the Awards recognize film Excellence in a variety of categories for an international appeal. They are going to be held on August 24 at the Movenpick Ambassador Hotel in Accra.

See full nomination list below;

GOLDEN ACTOR IN DRAMA

RAMSEY NOAH –  LEVI

JOHN DUMELO  –     OUT OF BOUNDS

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YASIN LUBOWA    – EXTRA TIME

CHRIS ATTOH     –   SYLVIA

MATEEGA SMITH    – 94 TERROR

ADJETEY ANANG   –  AZALI

GOLDEN SCREENPLAY DRAMA

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WANDA QUARTEY   – AZALI

MULINDWA RICHARD –   94 TERROR

LINDA OKYERE    – ADOMA

BETH ROGERS  –   LEVI

TUNDE BABALOLA –  DIAMONDS IN THE SKY

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GOLDEN ACTRESS IN DRAMA

NINSIMA RONAH  –  94 TERROR

ASANA ALHASSAN  – AZALI

MATILDA MOZIA –  OUT OF BOUNDS

ZAINAB BALOGUN  –  SYLVIA

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CHRISTABEL EKEH –  ADOMA

NANCY ISIME  –   LEVI

GOLDEN SUPPORTING ACTRESS DRAMA

AGABA JOAN –  94 TERROR

OMOWUNMI DADA  –  DIAMONDS IN THE SKY

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JASMIN BAROUDI   –  ADOMA

AKOFA EDJEANI  –   AZALI

SELASSIE IBRAHIM  – OUT OF BOUNDS

INI DIMA OKOJIE –  SYLVIA

OGUNMOLA BOLAJI  –  LEVI

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GOLDEN SUPPORTING ACTOR DRAMA

MUGEWA RAJJ – 94 TERROR

JEFFERY NORTEY -ADOMA

KAYODE OLAIYA –  DIAMONDS IN THE SKY

MOHAMMED HAFI  –  AZALI

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STAN EZE   –   TIMELINE

DEYEMI OKANLAWON – LEVI

GOLDEN MOVIE DRAMAKWABENA GYANSAH    AZALI

MULINDWA RICHARD –   94 TERROR

ABDUK SALAM MUMUNI –  ADOMA

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OKECHUKWU OKU –   LEVI

PASCAL AMANFO  – TIMELINE

EKENE SOM MEKWUNYE –  SYLVIA

GOLDEN ACTOR COMEDY

KELECHI UDEGBE  – BEDROOM POINTS

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OSCAR PROVENCAL  –  BIGMAN WAHALA

KUMI OBUOBISA –  LUCKY

CHRIS ATTOH –   BAD LUCK JOE

FIIFI COLEMAN –  GETTING MARRIED

OLAROTIMI FAKUNLE  – RUN

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GOLDEN ACTRESS IN COMEDY

KIKI OMEILI  –  RUN

YVONNE DODOO   – BIGMAN WAHALA

OMOWUNMI DADA  – BEDROOM POINTS

SIKA OSEI –  BAD LUCK JOE

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JANE AWINDOR  – LUCKY

GOLDEN SUPPORTING ACTRESS COMEDY

MOYO LAWAL  – BEBROOM POINTS

KABUKI AKINWUNMI  – LUCKY

RHODA AMPENE – BIGMAN WAHALA

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MICHELLE ATTOH  – BAD LUCK JOE

CHRISTABEL EKEH  – GETTING MARRIED

GOLDEN SCREENPLAY COMEDY

KIKI OMEILI  –  RUN

CHIJIOKE ONONIWU  – BEDROOM POINTS

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JOEWACKLE J. KUSI   – LUCKY

DANIEL ADJOKATCHER  – BIGMAN WAHALA

FOLAKE AMANFO –   JACOB

GOLDEN SUPPORTING ACTOR IN COMEDY

SOLOMON FIXEN  – LUCKY

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JOHN TIJANI  – BIGMAN WAHALA

ADENIJI JOHNSON –  BEDROOM POINTS

OLAROTIMI FAKUNLE –  RUN

JOHN DUMELO  –  GETTING MARRIED

GOLDEN MOVIE COMEDY

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LAWRENCE ADJEI-OKYERE

KUSI ADU-AMANKWAH

LUCKY

JUDITH AUDU  –  BEDROOM POINTS

DANIEL ADJOKATCHER  –  BIGMAN WAHALA

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KIKI OMEILI   –  RUN

ABDUL SALAM MUMUNI –  GETTING MARRIED

GOLDEN DIRECTOR

KWABENA GYANSAH –  AZALI

OKECHUKWU OKU – LEVI

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MULINDWA RICHARD –  94 TERROR

PASCAL AMANFO  – OUT OF BOUNDS

MAXWELL AKOVI AMUWI –  ADOMA

GOLDEN CINEMATOGRAPHY

WILLIAM K. AGBETI –  AZALI

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RWAMUSISAZI KYAKUNZIRE –  94 TERROR

OKECHUKWU OKU  –   LEVI

TOKA MCBAROR  –   DIAMONDS IN THE SKY

WILLIAM NTIAMOAH SEFA   –  GETTING MARRIED

GOLDEN MOST PROMISING ACTOR

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NINSIMA RONAH    –   94 TERROR

ASANA ALHASSAN –  AZALI

MANUEL AMANFO – TIMELINE

FLORENCE AGYEI –  ADOMA

ADOMA AGYEMANG –   BAD LUCK JOE

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GOLDEN DISCOVERY ACTOR

MANUEL AMANFO    TIMELINE

ASANA ALHASSAN    AZALI

NINSIMA RONAH   94 TERROR

FLORENCE AGYEI    ADOMA

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ESI HAMMOND ACCRA HUSTLERS

ILYAS ELJHANI    BURNOUT

GOLDEN EDITOR VIDEO

WILLIAM KOJO AGBETI   AZALI

MULINDWA RICHARD   94 TERROR

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OKECHUKWU OKU   LEVI

TOKA MCBAROR   DIAMONDS IN THE SKY

JUDE CHIDEBE    SYLVIA

GOLDEN SOUND EDITOR

WILLIAM KOJO AGBETI      AZALI

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OKECHUKWU OKU     LEVI

MULINDWA RICHARD    94 TERROR

GOLDEN EFFECTS STUDIO

DIAMONDS IN THE SKY

BERNIE ANTI

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ADOMA

MICHEAL OGUNLADE

SYLVIA

GOLDEN ART DIRECTOR

ALBERT ADJEI   AZALI

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MULINDWA RICHARD   94 TERROR

NKALUBO RHONNIE ABRAHAM

BASELYN86  LEVI

AGUNDA SUNDAY   OUT OF BOUNDS

ADOMA  MY NAME IS RAMADAN

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GOLDEN MAKEUP ARTIST

ADOMA

SUMU

AZALI

94 TERROR

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HASHTAG

OUT OF BOUNDS

GOLDEN COSTUME

GIFTY SOSSAVI MAWUENA      AZALI

NALUBEGA RASHIDAH     94 TERROR

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FAUZIA YAKUBU     ADOMA

LOLA AWE    DIAMONDS IN THE SKY

SUEDY KACHENJE    SUMU

GOLDEN INDIGENOUS MOVIE

KWABENA GYANSAH  AZALI

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KOBI RANA   MY NAME IS RAMADAN

MULINDWA RICHARD   94 TERROR

HASHIR KHALFAN   SUMU

MOUSTAPHA SAWADOGO  DUGA, THE SCAVENGER

GOLDEN SOUNDTRACK

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ELLY ARKIS

94 TERROR

GOMEZ TITO

AZALI

GOLDEN EFFECTS STUDIO

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DIAMONDS IN THE SKY

BERNIE ANTI

ADOMA

TIMELINE

ABIOLA TAIWO

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LEVI

GOLDEN SHORT FILM

DANIELLE ATAKORA

RISING STAR

PETER FADA

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A LIFE CALLED TEARS

JUDITH AUDU

#THEFOURTHSIDE

YEMOH IKE

VAGABONDS

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AUGUSTE WIBGHA

LE BANC SUR LE RIVAGE DU LAC

OVERALL GOLDEN MOVIE

KWABENA GYANSAH – AZALI

MULINDWA RICHARD  –  94 TERROR

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OKECHUKWU OKU  – LEVI

FEMI ADEBAYO –  DIAMONDS IN THE SKY

ABDUL SALAM MUMUNI  – ADOMA

EKENE SOM MEKWUNYE –  SYLVIA

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