President
Museveni on Monday delivered his New Year's address to Ugandans where he
touched on a number of issues ranging from corruption, rampant land evictions,
economic growth, and youth unemployment to the current political struggle. The
President made clear the priority focus
of the his government in what he
summarised as the 3Ls with a comparative C as listed; Low cost of electricity, Low cost of transport, Low cost of
money and the comparative advantage in the cost of labour
OVERALL ECONOMIC PERFORMANCE
INSIGHTS
The
president is confident that the economy is on track to grow at a fast rate, as projected
to grow at a rate of 6% this FY (2018/2019)
after a growth rate of 6.1% last FY
(2017/18), above the previously projected level of 5.5%. This confidence is premised on the fact that the economic
fundamentals of the cost of power, transport, and finance have been given
significant attention over the years of the NRM regime, and are beginning to
yield significant results.
In
his further elaborations and insights into these fundamentals, the president acknowledged that cost
of electricity is still high; he accounted this to the costly money that was
used in Bujagaali, leaving the cost at 13.38
US Cents/kwh without subsidy. After efforts of corporate taxes waiver, the
tariff reduced to 10.5 US Cents/kwh, and further with debt
refinancing arrangements, the Bujagali tariff reduced to 8.5 US Cents/kwh. The Nalubaale (Njeru side) and Kiira (Jinja side)
however are costing 2 US Cents/kwh,
Karuma will be 4.97 US Cents/kwh and
Isimba will be US 4.16 US Cents/kwh These efforts are
promising to players in the manufacturing sector who have for long cried about
consuming power at 10-12 US Cents/kwh
as opposed to their competitors in Ethiopia, South Africa, Egypt, Mauritius and
Asia where power is at US Cents
3-5/KWH
Father
facts reveal that In Ethiopia, the transmission and distribution costs of 8% the total cost and 11% in Kenya While In Uganda, the
distribution costs by UMEME account for 34%
the total cost of power to the end user, a distortion His government is
struggling to solve so that industrial power is at 5 US Cents/kwh from our electricity generation capacity target of the
country set at 1,800megawatts by
2020
About transport costs, the President pledged to continue Working with Kenya
and Tanzania to address this issue with emphasis on developing the rail
transport and water transport
Steps
to address the cost of finance have already been effected through revitalising UDB.NRM govt intends to use this vehicle
answer prayers of the manufacturers, agriculturalists and some of the services
sector players, such as hotels and the entertainment industry.
In
the foreign exchange accounting, the president was happy to report that the total
Foreign Exchange earnings in FY 2017/18 were US$ 6,612billiion as compared to US$7,692
billion spent on imports of goods and services the same year, with regional exports ( into EAC and COMESA)worth US$3,943billion(exports),and US$1,673billion(imports),Leaving
us with a trade surplus of US$2,270billion,
despite the many Non-tariff trade barriers (NTBs) still found in some of
the Member States.The
exports to the region have been; steel and steel products; dairy products;
beverages; electronics; grains (maize, millet, rice, beans); fruits and
vegetables; spices; coffee; tea; sugar and confectionery; plastic products; etc
, and those sent out to international destinations beyond the region have been gold,
coffee, cocoa, tea, fish and fish products, cotton flowers, cobalt, fruits and
vegetables. The Remittances by Ugandans working abroad were- US$ 1,244million
On
further stabilizing the economy, the president announced what he called the
beginning of the long journey of “weaning our agriculture from rain-fed
agriculture to irrigation”. By using three methods of agriculture; gravity
based irrigation like the Doho one using River Manafwa and Mobuku using River
Mobuku; micro solar pumping from a water source to a high elevation, then
gravity takes over; and bulk water transfer from a big source like the River
Kagyera or Nalubaale (L. Victoria) to a high elevation and then, gravity takes
over. To further operationalise this, the micro irrigation projects that are
either operational or planned will be 190 across the country. In addition to this,
he has encouraged solar powered water pump producers to either assemble or
manufacture those pumps here so that we can roll them out en masse for
individual farmers to buy them and immunize themselves against the erratic
rains.
BAZUKULU (YOUTH)
The
president is very optimistic about the future of the youth. He believes the
current youth have had a good foundation laid for them ie (Antenatal Health
care earlier provided, immunization, Universal Primary Education and Universal
Secondary Education), Efforts which have yielded to increased level of the
adult literacy rate from 43% to 75%, population increase to 40 million people
today from 14 million then, a population free of polio and with just a few
cases of parent neglect among others.
The
president however acknowledged existence of some gaps in the areas of; skills,
jobs, wealth creation and, sometimes discipline. He later reiterated that efforts
towards these concerns are already underway through projects, grants or
low-cost revolving loans and will be expanded. Further efforts towards skilling
of youths in technical schools or through special courses, will also continue
with aim to help them produce goods and services for import substitution and
export promotion in addition to the many internal distribution products and
services they are already producing.
The
president thinks that much as it’s good for the youth to pray and to listen to scriptures,
they need to accompany it with hard work and avoid the illusions of miracle
wealth as commonly preached in many of our churches. He further advised us to be
frugal, simple and not extravagant and showy this year.
CRIME & POLITICS
The
president reiterated that 12 Security action points that were undertaken to
immunize the country against the crime that spiked especially in the towns is
still in effect. The president still believes that the main thrust of dealing
with our security concerns is by upgrading the technological base of the
country in the anti-crime fight, upgrades which are still ongoing. None the
less, He still thinks that using the old Police methods of relying on public
vigilance, quick response from the Police, proper management of the crime
scene, etc. are still needed
By
and large, He is confidence that by the end of this New Year, Crime will be
defeated with a totally different anti-crime posture, much more improved
vigilance of the public and promptness in Police, together with added technological
mean.
About
politics, the president thinks there has been indiscipline by some actors verging
on criminality to forward their political agenda. Mr Museveni despised this
approach and advised on using healthy political competition means based on
economic and development performance efforts. He cautioned that Ugandan
patriots invested a lot of energy in creating stability in Uganda and he will
not allow anybody to destabilize it.
CORRUPTION
The
president acknowledged that despite all successes earlier achieved by the NRA
such as; stopping extortion on road blocks, extra-judicial killings,
sectarianism, poaching of wildlife in the National Parks, Power over public
finances; public contracts; public service jobs; and efforts made such as creating
new institutions, new instruments and new laws ─ such as the IGG, the
leadership code, etc, corruption still remained prevalent. Given the previous
successes made, the president is confident that the corruption battle will not fail the NRM govt to
defeat. In that regard he expressed new confidence with the new unit created
headed by Lt. Colonel Edith Nakalema to assist the IGG in this fight and not to
replace her as widely misconstrued. The unit`s main responsibility will be to run a 24 hour call centre where people can report
bribery efforts, embezzlement, land evictions, crime, among others, which then
it will contact the Police, the IGG so that they handle the cases. The unit
will further help the IGG, the Police IGP, the Chief Justice to monitor the
actions of their juniors and they also report to the president
LAND EVICTIONS
The
president sent out a clear message to the landlords about his preference of a
win-win approach to handling land related matters. He pledged to continue liaising
closely with the CJ and His lawyers to seek all legal means to defend His comrades
in the struggle or their descendants (the Bibanja owners) who are treated
unfairly on land matters
AFRICAN INTEGRATION
The
president insisted that the NRM government is focused on patriotism within
Uganda, Pan-Africanism in Africa and international trade on the basis of
comparative advantage globally. The issue of African integration will thus
guarantee us our prosperity on premise that when we produce goods and services,
we have a big market to absorb them
The
government further hopes to work with the fraternal peoples of Kenya, Tanzania,
Rwanda, Burundi and South Sudan to consolidate the unity of East Africa and
Additionally, through COMESA and AU, to build a wider African Common Market.
In
conclusion, the president submitted a proposal for each district to have a SACCO
that will cater for all the elected leaders of the LCs and the NRM structures to
be examples to the others, and banish poverty in their homes since their large
numbers do not allow for their payment of salaries. He encouraged his team and
all Ugandan leaders to be examples in all aspects including wealth creation as
written that; “let your light so shine before men that they will see your deeds
and praise your Father in Heaven”. (Mathew 5:16)
Emmanuel Nambaale is a
young Economist with
Economic Hub Uganda
(EHU)
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