By J. L. Andrew
The President of Uganda, General (RTD) Yoweri Kaguta Museveni Tibuhaburwa, has emphasized the importance of enhancing the quality of domestically produced goods in order to stimulate economic growth. He highlighted that by adding value to products such as coffee, maize, forest products, minerals, etc., the nation will experience significant growth.
“We have the electricity and we shall continue expanding the generation and the transmission. The private–sector is the main engine of growth and transformation. We already have a welleducated population that is easy to skill and is also innovative,” he noted.
He emphasized that in order for the economy to expand efficiently, the nation must be competitive in both the price and quality of the products it produces.
“Our products and services must be cheaper and of better quality, than products from other countries. In order to achieve that, we need affordable electricity which is already being worked on. We need low-cost money for the wealth creators, which is already available in the forms of Parish Development Model (PDM), Emyooga and UDB loans. Labour is still not expensive,” he noted.
While delivering his budget speech at Kololo Independence Ground on June 13, 2024, the President underscored the importance of addressing the high costs of production that are making products and services less competitive.
“We must reactivate rail and water transport for cargo. We have repaired the old metre-gauge from Malaba-Kampala and also from Tororo to Gulu-Pakwach. We are going to start building the Standard Guage Railway (SGR) from Malaba to Kampala and Kampala to Mpondwe. Later, we are going to expand the SGR to Gulu–Nimule. The railway will transform our capacity to create wealth. It will also save the roads from the destruction by the heavy trucks, cause less pollution and consume less fuel. We are moving forward on the issue of introducing electric cars and electric boda-bodas,” he noted.
He stressed that another strategic intervention that is essential for stabilizing the economy in the long term is investing in agricultural irrigation.
“With these plus what I said in the State of Nation Address; and what has been said in the Budget, there is nothing that will impede us. In a short-while to come, our petroleum will start coming from the ground,” he added.
He stressed that this will enable the Government to earn an extra USD2billion, “assuming today’s prices”.
“This is apart from other income streams to the country. This oil money will never be used for consumption. It will only be used for infrastructure and science development. Therefore, strategic items like the railway and the irrigation will be funded by us directly,” President Museveni said.
“The president said people who do not bother to listen to our message, keep talking of poverty, lack of jobs, etc,” he added.
He emphasized that by following the guidelines set by the National Resistance Movement (NRM) government since 1995, the four sectors of Commercial Agriculture, Artisanship and Manufacturing, Services, and ICT have the potential to generate a significant number of job opportunities that will surpass the current job levels in Uganda.
He as of now, there are 922,998 individuals employed in manufacturing, 5,076,787 individuals employed in services, with 40,972 working in ICT, and 66,034 in mining and quarrying.
“This is just endozo (to taste). Therefore, Ugandans, wake up. Work. The capital to help you go into any of the sectors, is already available in UDB, PDM, Emyooga, etc. We can always add more to these figures,” he added.
To crush the corrupt
Museveni highlighted that the only remaining challenge is corruption, a problem he vehemently criticized and pledged to eliminate entirely.
“As I said the other day, we are going to stamp out that corruption. It is really amazing how people don’t see. NRM is a very powerful force, I don’t know how anybody can think they can play around with it, we are very soft, we use soft methods, we are always talking. I am like a pastor preaching. But I don’t know why they don’t know that we got a lot of capacity, a lot of power which we shall use if necessary. I really can’t get it because these corrupt people insult our heroes,” he said.
“Who do those people (corrupt) think they are? We are going to smash you, we have the capacity. Because I don’t concentrate on those things myself, but now that they don’t listen, you have now attracted our full attention, you will see. We shall crash this treachery, this is really betrayal and we are going to finish it,” President Museveni said.
“Corruption is very dangerous, don’t involve me in your struggles with the Commissioners, that is another matter, but it is corruption,” he added.
President Museveni stated that he holds a personal conviction against borrowing when it comes to the matter of the debt burden.
“Now borrowing, I am glad the Minister explained this borrowing. These newspapers and radios create panic among you people-debt, debt, debt. But I don’t believe in borrowing. I believe in cutting our coat according to our cloth and that is what we should be doing,” he added.
Debt burden
According to the the Minister of Finance Planning and Economic Development, Matia Kasaija as at the end of December 2023, Uganda’s total public debt stood at UG Shs93.38 trillion, equivalent to USD24.69 billion.
Of this amount, external debt was Shs55.37 trillion equivalent to USD14.64 billion while domestic debt was Shs38.01trillion equivalent to USD10.05 billion. The public debt is projected at Shs 97.638 trillion, equivalent to USD25.716 billion by 30th June 2024.
He stressed that in nominal terms, Uganda’s public debt to GDP was estimated at 46.9% in June 2023, and is projected to end at 47.9% this financial year ending June 2024.
“This is below the 52.4 percent threshold provided for in the Charter for Fiscal Responsibility for the financial year 2023/24, and less than 50 percent of GDP Government policy target for debt sustainability,” he added.
However, Ksaija said although the country’s debt has increased, it is still sustainable and Government is committed to keeping it sustainable. “Most importantly, the money we have borrowed has been invested well and these investments have started to give good returns.
He said 29 percent of the borrowed money was invested in improving the transport infrastructure including, the oil roads, tourism roads, Kampala-Entebbe Express Way, the Kampala Flyover, and the several tarmacked roads linking the whole country; airports including upgrading of Entebbe International Airport, and building of Kabalega International Airport, rehabilitation of the Metre Gauge Railway-Minister Kasaija
Below is the full President’s budget speech……………..
In the State of the Nation Address, I reminded you of the 3 historical missions of the African Revolution, of the four ideological principles of the NRM and of how the Ugandan economy has not only grown from USD 1.5 billion in 1986 to now USD 55 billion by the exchange rate method but to USD180 billion by the PPP method.
The exchange rate method shrinks our economy because we are still importing items from abroad unnecessarily. If you look at the size of our GDP by the PPP method, it is now two times the size of the South African economy when Mzee Mandela took over the leadership of that country in 1994. In the next few years, not the 2040 vision, we shall catapult the economy to the size of USD500 billion.
Why am I sure of this? It is because much of our economy today, is comprised of raw-materials, that are in value normally 10% of the value of the final products. By adding value to coffee, maize, forest products, minerals, etc., our economy will grow exponentially. We have the electricity and we shall continue expanding the generation and the transmission.
The private–sector is the main engine of growth and transformation. We already have a well- educated population that is easy to skill and is also innovative.
In order for the economy to grow, we need to be competitive in the products we produce. Our products and services must be cheaper and of better quality, than products from other countries. In order to achieve that, we need affordable electricity which is already being worked on. We need low-cost money for the wealth creators, which is already available in the forms of PDM, Emyooga and UDB loans. Labour is still not expensive.
However, to further handle the issue of the costs of production that render products and services uncompetitive, we must reactivate rail and water transport for cargo.
We have repaired the old metre-gauge from Malaba-Kampala and also from Tororo to Gulu-Pakwach. We are going to start building the SGR from Malaba to Kampala and Kampala to Mpondwe.
Later, we are going to expand the SGR to Gulu–Nimule. The railway will transform our capacity to create wealth. It will also save the roads from the destruction by the heavy trucks, cause less pollution and consume less fuel.
We are moving forward on the issue of introducing electric cars and electric boda-bodas.
The other strategic intervention we need to stabilize our economy forever, is irrigation for agriculture. With these plus what I said in the State of Nation Address; and what has been said in the Budget, there is nothing that will impede us.
In a short-while to come, our petroleum will start coming from the ground. This will enable the Government to earn an extra USD 2billion, assuming today’s prices. This is apart from other income streams to the country. This oil money will never beused for consumption. It will only be used for infrastructure and science development.
Therefore, strategic items like the railway and the irrigation will be funded by us directly.
People who do not bother to listen to our message, keep talking of poverty, lack of jobs, etc. The four sectors of Commercial Agriculture, Artisanship and Manufacturing, Services and ICT, if utilized in the manner recommended by the NRM ever since 1995, will create so many jobs that we will exceed the job levels of Uganda. We already have 922,998 people employed in manufacturing, 5,076,787 people employed in services; out of these 40,972 are employed in ICT, 66,034 people are employed in mining and quarrying. This is just endozo (to taste).
Therefore, Ugandans, wake up. Work. The capital to help you go into any of the sectors, is already available in UDB, PDM, Emyooga, etc. We can always add more to these figures.
The only remaining problem is corruption as I said the other day. We are going to stump that corruption.
Yoweri K. Museveni
P R E S I D E N T
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