SPEECH

BY H.E. Yoweri Kaguta Museveni President of the Republic of Uganda On Socio-economic transformation to the NRM MPs Retreat KYANKWANZI 15th-22nd October, 2011

The NRMs Vision is unique among the Parties and in the history of Uganda. It is based on four principles: Nationalism (anti-sectarianism); Pan-Africanism (integration of Africa); Socio-economic transformation; and Democracy. Firstly, we reject sectarianism because it negates the interests of even the individuals, forget about groups. In the booklet on Patriotic Clubs, I pointed out my own example. Although I am a Munyankore, my interests of prosperity are most served by the Ugandans of Kampala and other East Africans who buy my milk. Otherwise, I would be stuck with my milk and I would be poor in spite of owning land and cattle. My Banyankore neighbours assist me in one aspect. Since many of them also produce milk, we are able to generate large volumes, which makes it easy for marketing and processing. A lot of milk is found in one area. You do not have to go to many areas to look

for milk if you are a trader or a processor. Otherwise, those Banyankore do not buy my milk because they also produce milk. The complimentarity between my interests and other Ugandans on milk is replicated on many other items: a Muganda with a shop or a taxi in Kampala sells or provides service to all Ugandans that are interested in his services, a Langi who is producing sunflower provides us with vegetable oil while we provide him with a market, etc. Therefore, those who preach sectarianism are not only wrong but they are also an obstacle to the interests of Ugandans as individuals. Only parasites benefit from sectarianism and those also do so for a limited period. In the end, they also lose. That is what happened to the They immediate post independence political groups.

lost badly and, unfortunately, they made all of us lose lives, wealth, opportunities and development time. Therefore, the NRMs medicine for this is antisectarianism, nationalism or patriotism whatever we prefer to call it.

Secondly, NRM believes that Uganda alone is not enough to cater for our economic interests or our strategic security. We need East Africa, we need Africa for markets for our products. We need East Africa for our strategic security. We need the whole of Africa for an even bigger market. We need East Africa and Africa to negotiate for bigger markets abroad. Uganda alone does not have enough bargaining power to demand reciprocal market access from others e.g. EU, USA, Russia, China, India, Brazil, etc. Thirdly, the NRM has always advocated for socioeconomic transformation. Moving Uganda from underdevelopment to modernity. industrial country. guarantee agricultural our Turning Uganda into an It cannot also security artisan and skills Agriculture alone cannot give a in terms of some

good quality of life to our people. future

independence. When Africa was colonized, we were an continent with

(blacksmiths,

carpenters,

etc).

That

level

of

development could not guarantee our security. Fourthly, the NRM, right from 1965, has always worked for democracy for Uganda and even Africa where possible. Democracy, free of misinformation and manipulation, is a good therapy for societies. It provides avenues for rectification and renewal in the political leadership of the country. It guarantees the sovereignty of the people over their affairs. These four principles are the core principles of the NRM. This retreat, however, is dedicated to principle number three socio-economic transformation. the last 500 years, the European society undergone socio-economic transformation. In has

By 1400,

the European society was comprised of three classes: the aristocrats, the peasants and the artisans. By the time of the French Revolution, one class, the artisans, had declined and two new classes had been born,

namely

the

middle

class

(bourgeoisie)

and

the

industrial working class (the proletariat). Today, two classes have disappeared from the

European society. These are: the aristocrats and the peasants. Even what people call aristocrats in Europe are, in effect, upper middle class because they no longer depend on extracting rent from peasants because the latter are no longer there. By the time of the French Revolution, the aristocrats were extracting rent from the peasants who were tilling the land, held in monopoly by the former; the bourgeoisie (middle class) were supported by profits (the difference between the cost price and the selling price of a product or the input costs versus the final value of products); the proletariat (working class) were depending on wages; and the peasants were depending on their own sweat minus what the aristocrats expropriated from them in terms of rent for agricultural land use. In Europe, rent from agricultural land has declined. The economic

relations are now dominated by profits for enterpriseowners and wages for workers i.e. the bourgeoisie and the proletariat respectively. The employees, who depended on wages, have different grades such as the petty bourgeoisie (professionals, etc.) and the lower grades the real proletariat. Industries based on manufacturing have now migrated out of Europe to countries like China, India, South Africa, etc., looking for low labour costs. predominant. Service industries are now This, however, does not change the

class configuration the middle class, the petty bourgeoisie and the clerical as well as group employees (cleaners, etc.) that are equivalent to the proletariat of yore (manufacturing industries). It has been the view of the NRM that socio-economic transformation must take place in Uganda and in Africa. In order for socio-economic transformation to take place, you need the following factors:

 peace and stability, at least in some parts of the country; correct macro-economic policies (control inflation, etc); industrialization; modernizing services; modernizing agriculture; developing the human resource; modernizing infrastructure (roads, electricity, the railways, piped water, Information Communication Technology (ICT), etc; the social infrastructure needed is schools as well as health units; and markets that are big enough to absorb our products. You neglect any one of these, you will stagnate or experience disequilibria. The NRM, led by myself, has been very clear on this. Indeed, when we were still in the bush, we evolved the Ten-Point programme. Point
8

Number Five talked of Building an independent, integrated and self-sustaining national economy. As I told you last time, when we were finalizing the Ten-Point programme at Kanyaara, Wakyaato SubCounty, Nakaseke District, I sent Kale to the Bank of Uganda to get me figures of imports and exports. they were embarrassingly low for a country. I was disappointed when I got those figures because They exposed the fallacy that was being peddled at that time. The fallacy was that the economy of Uganda had been thriving until the advent of Idi Amin. These figures convinced me that during the period between 1894 and 1970, the economy only catered for a very small number of people. not apparent. That is why the crisis was Otherwise, even at that time, the

economy was not all right. It was, indeed, an enclave economy small islands of prosperity surrounded by a sea of backwardness.

As soon as we got into Government, we started creating the factors outlined below: disciplining the Army and Security forces to create stability; controlling inflation; Rehabilitating infrastructure and expanding it; attracting industries; starting immunization and education programmes for all; etc. The results were dramatic. Here-below is a table

showing Ugandas export earnings for goods as well as services, remittances from Ugandans abroad and investment inflows on the one hand and expenditure on imports and other outflows on the other hand since 1961:

10

Uganda (in millions of dollars)

Years Export of Goods Exports of Services Imports of Goods Imports of Services Workers Remittances Foreign Direct Investment Donor Loans Donor Grants Selected Exports Values ($ millions) Coffee Cotton Tea Tobacco Maize VOLUMES Coffee(Millions of 60 kg bags) Cotton(000 of Tons) Tea(000 of Tons) Tobacco(000 of Tons) Maize(000 of Tons) Years Export of Goods Exports of Services Imports of Goods Imports of Services Workers Remittances Foreign Direct Investment Donor Loans Donor Grants Selected Exports Values ($ millions) Coffee 1971 243.9 37.1 247.7 91.8 -1.2 0.5 2.6 1972 263.8 25.3 171.9 78.2 -11.9 1973 275.1 11.2 175.5 52.2 5.2 1974 294.0 9.4 236.3 74.0 1.7 1975 237.2 10.6 228.4 84.3 2.1 0.6 16.0 1976 323.6 9.4 206.8 78.2 1.2 0.4 7.7 1977 547.8 4.9 366.6 104.5 0.8 0.4 2.0 1978 323.0 8.5 306.3 152.5 1.0 0.2 5.9 1979 397.2 14.9 265.7 108.4 1.6 1961 134.7 82.6 12.6 1962 134.4 99.4 -4.3 1963 175.7 113.0 1.4 1964 213.6 140.1 -10.2 1965 206.4 148.0 13.2 1966 205.8 15.9 162.8 33.6 1.3 1967 209.5 21.0 160.4 61.3 1.5 1968 208.8 25.6 161.2 59.1 0.9 1969 220.9 31.4 173.3 64.5 3.3 1970 261.6 32.6 178.2 75.1 4.2 0.2 1.5

4.0

2.9

4.2

2.5

3.1

2.6

3.8

29.1

11

Cotton Tea Tobacco Maize VOLUMES Coffee(Millions of 60 kg bags) Cotton(000 of Tons) Tea(000 of Tons) Tobacco(000 of Tons) Maize(000 of Tons) Years Export of Goods Exports of Services Imports of Goods Imports of Services Workers Remittances Foreign Direct Investment Donor Loans Donor Grants Selected Exports Values ($ millions) Coffee Cotton Tea Tobacco Maize VOLUMES Coffee(Millions of 60 kg bags) Cotton(000 of Tons) Tea(000 of Tons) Tobacco(000 of Tons) Maize(000 of Tons) 1980 319.4 9.9 317.6 123.4 1981 229 44 284 100 83 100 1982 347 338 160 1983 368 428 150 98 76 1984 408 17 342 82 123 66 1985 379 23 264 130 1986 407 12 438 131 191 7.7 1987 334 598 218 401 96 1988 266 658 235 5 169 187 1989 278 740 237

38.1

119 56

186 47

313 177

419.574 0.000 0.000

Years Export of Goods Exports of Services

1990 178 -

1991 174 21

1992 151 35

1993 197 94

1994 434 64

1995 560 104

1996 639 145

1997 593 161

1998 510 177

1999 586 192

2000 441 208

12

Imports of Goods Imports of Services Workers Remittances Foreign Direct Investment Donor Loans Donor Grants Selected Exports Values ($ millions) Coffee Cotton Tea Tobacco Maize VOLUMES Coffee(Millions of 60 kg bags) Cotton(000 of Tons) Tea(000 of Tons) Tobacco(000 of Tons) Maize(000 of Tons)

618 195

475 242 1

513 248 3 253 336

597 293 54 55 409 260

881 436 11 88 268 319

927 563 63 121 234 400

987 675 211 121 225 336

886 388 159 142 272 421

999 442 165 133 216 573

931 428 170 140 207 472

914 416 186 181 206 559

293 257

187 314

310.4 29.3 30.5 12.8 11.6

295.0 7.5 28.2 17.7 9.3

274.3 11.7 22.4 14.7 4.7

125.4 22.1 41.0 24.9 22.3

1.1 0.7 2.7 0.8 21.8

2.0 1.1 6.3 2.2 21.2

1.9 1.6 10.3 3.9 96.1

3.3 0.7 2.7 0.8 21.8

2.8 1.1 6.3 2.2 21.2

4.6 1.6 10.3 3.9 96.1

3.5 0.7 2.7 0.8 21.8

3.3 1.1 6.3 2.2 21.2

3.8

2.5 16.9 25.4 12.2 10.4

Years Export of Goods Exports of Services Imports of Goods Imports of Services Workers Remittances Foreign Direct Investment Donor Loans Donor Grants Selected Exports Values ($ millions) Coffee Cotton Tea Tobacco Maize VOLUMES Coffee(Millions of 60 kg

2001 467 217 975 479 349 151 354 483

2002 478 225 1038 495 423 185 131 494

2003 572 262 1203 379 299 202 191 607

2004 759 373 1427 490 311 295 206 678

2005 1016 525 1746 609 322 380 215 604

2006 1188 526 2216 770 411 644 143 616

2007 1776 593 2958 977 452 792 453 391

2008 2208 799 4043 1257 724 729 267 379

2009 2327 967 3787 1423 778 816 438 403

2010 2164 1314 4264 1837 915 848 373 502

97.6 14.7 30.4 31.2 10.9

96.6 18.1 25.8 36,2 11.6

91.1 19.8 36.3 38.4 13.0

123.1 44.8 35.5 40.3 16.0

171.7 38.2 34.0 31.2 19.6

190.3 11.9 30.4 27.6 24.2

266.6 22.5 47.6 65.3 24.0

398.1 17.5 47.3 72.7 18.1

280.2 19.6 58.6 61.7 26.5

327.6 46.4 73.1 90.3 3.4

3.1

3.4

2.4

2.6

2.4

2.2

2.7

3.3

3.0

2.8

13

bags) Cotton(000 of Tons) Tea(000 of Tons) Tobacco(000 of Tons) Maize(000 of Tons)

13.9 30.2 14.5 60.2

22.6 29.5 20.2 72.9

18.1 34.1 25.5 58.2

30.9 35.4 29.7 83.4

40.3 36.6 24.5 93.3

9.9 27.1 17.3 110.3

17.9 44.1 24.7 105.1

9.5 46.0 30.6 71.7

20.1 48.3 32.9 98.1

12.3 54.6 39.1 151.4

Source: Bank of Uganda

The following table shows the amount of taxes collected from 1986 to-date:
Revenue collection & tax to GDP ratios: 1986/7 to 2005/06 and 2008/09 projections (Shs. billion)

Period Net URA collections (Shs Billions)* Tax revenue as a Percent of GDP**

1982/83

1983/84

1984/85

1985/86

1986/87

1987/88

1988/89

1989/90

1990/91

1991/92

0.52 10.08%

0.93 11.38%

1.60 9.24%

2.84 6.85%

5.01 4.23%

18.32 4.91%

44.60 5.18%

89.57 6.77%

133.79 7.61%

180.46 6.83%

Period Net URA collections (Shs Billions)* Tax revenue as a Percent of GDP**

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

1999/00

2000/01

2001/02

282.60

373.35

506.99

611.70

728.35

797.43

935.56

978.00

1,075.15

1,212.47

7.58%

8.80%

9.73%

10.23%

11.21%

10.51%

11.42%

11.91%

10.44%

11.12%

Period Net URA collections (Shs Billions)* Tax revenue as a Percent of GDP**

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

1,409.25

1,642.06

1923.519

2,231.05

2,625.74

3,161.70

3,662.32

4,205.69

5,114.20

11.33%

11.75%

12.00%

12.28%

12.39%

12.91%

12.17%

12.16%

13.18%

Source: URA

14

The following tables show the quantities in tonnes, bags, kilograms or litres from 1950 todate for the following products:
Agricultural Acreage and Production for Selected Commodities Commodity Wheat production (metric tons) Bananas Area Harvested (Ha) Bananas Production Qty (m tonnes) Cassava Area Harvested (Ha) Cassava Production Qty (tonnes) Cattle (Head) Cocoa Area Harvested (Ha) Cocoa Production Qty (tonnes) Coffee Area Harvested (Ha) Coffee Production Qty (tonnes) Maize Area Harvested (Ha) Maize Production Qty (tonnes) Tea Area Harvested (Ha) Tea Production Qty (tonnes) Wheat Area Harvested (Ha) 1961 1962 1963 1964 1965 1966 1967 1968 1969

885

1,329

5,000

5,000

7,920

50,000

50,000

50,000

50,000

50,000

52,100

69,900

88,900

82,000

722,414

744,756

767,790

791,536

816,017

841,254

1,019,702

1,546,000

1,612,550

317,000

264,000

286,000

240,000

359,000

217,000

253,000

227,000

300,000

1,120,000 3,618,000

1,055,000 3,382,762

1,140,000 3,464,603

985,000 3,463,937

1,300,000 3,496,797

900,000 3,496,797

1,063,000 3,626,643

930,000 3,682,325

1,400,000 3,971,000

900

1,000

1,000

1,100

1,100

1,200

1,400

2,000

2,100

20

25

25

30

30

32

46

86

147

245,100

254,500

255,300

261,100

293,300

335,300

336,000

252,400

281,200

94,100

119,000

158,200

172,400

152,100

153,900

166,400

133,000

247,200

178,464

170,896

159,606

193,000

284,000

306,000

275,000

275,000

350,000

196,000

190,000

200,000

220,000

270,000

273,000

230,000

341,884

446,011

5,500

5,700

6,300

7,150

7,300

8,000

8,000

10,000

10,000

5,100

6,319

6,170

7,615

8,366

11,215

11,242

15,163

17,627

324

486

3,000

3,000

15

Wheat Production Qty (tonnes) Sugar Cane Area Harvested (Ha) Sugar Cane Production Qty (tonnes)

885

1,329

5,000

5,000

16,800

17,000

17,400

19,000

19,300

20,800

23,100

27,100

31,600

1,211,000

1,310,000

1,520,000

1,550,000

1,480,000

1,600,000

1,650,000

1,672,000

1,650,000

Agricultural Acreage and Production for Selected Commodities Commodity Wheat production (metric tons) Bananas Area Harvested (Ha) Bananas Production Qty (tonnes) Cassava Area Harvested (Ha) Cassava Production Qty (tonnes) Cattle (Head) Cocoa Area Harvested (Ha) Cocoa Production Qty (tonnes) Coffee Area Harvested (Ha) Coffee Production Qty (tonnes) Maize Area Harvested (Ha) Maize Production Qty (tonnes) 1970 1971 1972 1973 1974 1975 1976 1977 1978

7,000

6,900

6,900

8,000

14,000

12,000

13,000

13,900

5,000

142,500

108,400

124,900

100,000

100,000

100,000

100,000

100,000

100,000

1,622,443

1,632,336

1,411,290

1,519,851

1,572,260

1,624,668

1,677,077

1,729,486

1,781,894

539,000

508,000

375,000

483,000

485,000

618,200

512,200

540,300

528,600

2,578,000 4,280,500

2,417,000 4,223,900

2,650,400 4,472,600

2,131,900 4,628,700

2,349,900 4,773,300

2,992,100 4,867,900

2,837,800 4,989,500

2,993,400 4,911,100

2,028,400 5,245,600

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

241

145

190

200

100

100

200

100

200

245,700

257,100

256,500

280,000

222,400

223,200

223,922

223,807

223,000

201,500

175,500

183,700

212,600

199,100

199,000

137,100

155,900

121,300

300,000

280,000

415,000

314,000

388,000

475,400

526,470

429,298

450,000

388,000

421,000

500,000

419,000

430,000

570,000

674,000

566,000

594,000

16

Tea Area Harvested (Ha) Tea Production Qty (tonnes) Wheat Area Harvested (Ha) Wheat Production Qty (tonnes) Sugar Cane Area Harvested (Ha) Sugar Cane Production Qty (tonnes)

10,300

15,000

14,600

16,400

16,300

17,500

18,000

16,800

18,300

18,200

18,000

23,400

22,000

22,000

18,400

15,400

15,200

10,900

4,000

4,000

3,000

3,000

4,000

6,000

4,975

6,293

6,600

7,920

7,000

6,900

6,900

8,000

14,000

12,000

13,000

13,900

31,800

29,100

29,000

27,000

28,000

24,333

29,493

33,200

31,300

1,750,000

1,720,000

1,550,000

1,223,200

720,000

464,760

563,316

634,120

430,000

Agricultural Acreage and Production for Selected Commodities Commodity Wheat production (metric tons) Bananas Area Harvested (Ha) Bananas Production Qty (tonnes) Cassava Area Harvested (Ha) Cassava Production Qty (tonnes) Cattle (Head) Cocoa Area Harvested (Ha) Cocoa Production Qty (tonnes) Coffee Area Harvested (Ha) 1979 1980 1981 1982 1983 1984 1985 1986 1987

17,000

8,000

10,000

12,000

7,000

8,000

8,333

10,000

13,000

102,000

102,000

102,000

102,000

102,000

102,000

104,000

105,000

106,000

1,834,303

1,891,034

1,939,522

1,944,793

2,116,392

2,170,658

2,118,976

2,290,785

2,345,327

303,000

302,000

310,000

331,000

372,000

401,000

299,769

361,724

345,000

1,294,000 5,242,200

2,072,000 4,770,600

3,034,000 4,745,400

3,127,000 4,821,100

3,239,000 4,871,300

2,969,000 4,993,100

2,699,565 3,952,000

2,900,000 4,149,600

3,101,000 4,357,080

2,000

2,000

2,000

2,000

2,000

2,000

2,000

1,500

1,800

200

100

100

100

200

271

186

69

100

224,000

224,000

224,000

224,000

224,000

224,000

224,500

224,700

224,700

17

Coffee Production Qty (tonnes) Maize Area Harvested (Ha) Maize Production Qty (tonnes) Tea Area Harvested (Ha) Tea Production Qty (tonnes) Wheat Area Harvested (Ha) Wheat Production Qty (tonnes) Sugar Cane Area Harvested (Ha) Sugar Cane Production Qty (tonnes)

103,000

135,200

97,500

161,866

148,224

145,971

143,995

159,881

167,067

272,000

258,000

260,000

285,000

295,000

347,000

288,614

321,953

307,000

453,000

286,000

342,000

393,000

413,000

338,000

354,000

322,000

357,000

4,000

3,000

4,000

5,000

6,000

8,000

9,000

7,000

7,200

1,800

1,500

1,700

2,580

3,054

5,214

5,758

3,335

3,511

3,000

8,000

4,000

5,000

5,000

4,000

4,000

5,362

4,620

5,000

17,000

8,000

10,000

12,000

7,000

8,000

8,333

10,000

37,500

31,000

31,000

31,000

31,000

31,000

31,000

31,000

31,000

350,000

340,000

360,000

380,000

380,000

380,000

380,000

380,000

380,000

Agricultural Acreage and Production for Selected Commodities Commodity Wheat production (metric tons) Bananas Area Harvested (Ha) Bananas Production Qty (tonnes) Cassava Area Harvested (Ha) Cassava Production Qty (tonnes) Cattle (Head) Cocoa Area Harvested 1988 1989 1990 1991 1992 1993 1994 1995 1996

10,761

4,000

9,000

8,800

9,000

9,000

9,000

9,000

9,000

109,000

111,000

118,000

123,000

120,000

118,000

120,000

120,000

130,000

2,457,010

2,568,692

2,623,345

3,060,569

3,116,216

3,062,488

3,118,170

3,173,851

3,272,012

361,000

392,096

412,000

389,000

362,000

369,000

320,000

332,000

335,000

3,271,000 4,574,934 2,500

3,568,376 4,803,681 5,000

3,420,000 6,836,335 10,000

3,229,000 7,702,605 10,500

2,896,000 8,042,768 10,500

3,139,000 8,183,392 10,500

2,080,000 8,444,392 10,500

2,224,000 8,048,702 11,000

2,245,000 8,254,001 12,500

18

(Ha) Cocoa Production Qty (tonnes) Coffee Area Harvested (Ha) Coffee Production Qty (tonnes) Maize Area Harvested (Ha) Maize Production Qty (tonnes) Tea Area Harvested (Ha) Tea Production Qty (tonnes) Wheat Area Harvested (Ha) Wheat Production Qty (tonnes) Sugar Cane Area Harvested (Ha) Sugar Cane Production Qty (tonnes)

224

461

1,000

1,200

1,200

1,500

1,700

2,000

2,500

224,700

237,600

270,000

270,000

260,000

265,000

263,000

263,000

280,000

151,157

169,042

128,747

147,366

110,334

144,551

198,371

181,465

287,925

345,000

430,064

401,000

420,000

438,000

503,000

563,000

571,000

584,000

440,000

623,585

602,000

567,000

823,887

979,337

1,261,616

1,338,179

1,445,301

7,200

8,000

11,000

14,500

15,500

16,000

16,000

16,000

18,000

3,512

4,658

6,704

8,877

9,504

12,102

13,462

12,692

17,418

6,000

4,891

2,000

5,000

5,000

5,000

5,000

5,000

5,000

13,000

10,761

4,000

9,000

8,800

9,000

9,000

9,000

9,000

31,000

25,000

25,000

22,000

18,000

16,000

14,000

15,000

18,000

400,000

510,000

610,000

845,000

960,000

950,000

950,000

1,150,000

1,450,000

Agricultural Acreage and Production for Selected Commodities Commodity Wheat production (metric tons) Bananas Area Harvested (Ha) Bananas Production Qty (M tonnes) Cassava Area 1997 1998 1999 2000 2001 2002 2003 2004 2005

9,000

11,000

12,000

14,000

14,000

15,000

15,000

15,000

18,000

130,000
9,303,000

130,000
9,318,000

130,000
8,949,000

135,000
9,428,000

135,000
9,732,000

135,000
9,888,000

135,000
9,700,000

135,000
9,686,000

135,000
9,380,000

342,000

356,000

375,000

401,000

390,000

398,000

405,000

407,000

387,000

19

Harvested (Ha) Cassava Production Qty (tonnes) Cattle (Head) Cocoa Area Harvested (Ha) Cocoa Production Qty (tonnes) Coffee Area Harvested (Ha) Coffee Production Qty (tonnes) Maize Area Harvested (Ha) Maize Production Qty (tonnes) Tea Area Harvested (Ha) Tea Production Qty (tonnes) Wheat Area Harvested (Ha) Wheat Production Qty (tonnes) Sugar Cane Area Harvested (Ha) Sugar Cane Production Qty (tonnes)

2,291,000 8,362,669

3,204,000 8,621,258

4,875,000 8,933,777

4,966,000 9,209,189

5,265,000 9,445,322

5,373,000 9,736,663

5,450,000 10,037,258

5,500,000 10,349,644

5,576,000 10,426,415

12,767

12,800

13,098

13,717

14,200

14,200

14,200

14,200

14,200

2,700

2,800

3,500

3,950

3,950

3,500

3,800

4,500

5,000

272,000

265,000

275,000

300,991

264,000

217,504

264,000

264,000

263,000

219,624

205,056

251,881

143,475

197,410

209,547

150,871

170,081

158,100

598,000

616,000

608,000

629,000

652,000

676,000

710,000

750,000

780,000

1,236,701

1,206,499

1,605,772

1,866,331

1,945,788

2,094,876

2,174,522

2,333,681

1,995,911

20,500

20,000

15,213

15,701

15,761

22,000

20,000

20,000

20,100

21,075

25,901

24,739

29,236

32,857

39,476

36,895

35,706

37,730

5,000

5,000

6,000

7,000

8,000

8,000

9,000

9,000

9,000

9,000

9,000

11,000

12,000

14,000

14,000

15,000

15,000

15,000

19,500

14,000

20,000

20,000

19,705

25,000

17,043

23,357

24,536

1,600,000

1,155,873

1,420,150

1,476,215

1,542,599

1,877,624

1,995,078

2,202,877

2,149,673

Agricultural Acreage and Production for Selected Commodities Commodity Wheat production (metric tons) Bananas Area Harvested (Ha) Bananas Production Qty (M tonnes) 2006 19,000 135,000
9,052,000 9,233,000

2007 19,000

2008 20,000

2009

2010

9,371,000

9,512,000

9,664,000

20

Cassava Area Harvested (Ha) Cassava Production Qty (tonnes) Cattle (Head) Cocoa Area Harvested (Ha) Cocoa Production Qty (tonnes) Coffee Area Harvested (Ha) Coffee Production Qty (tonnes) Maize Area Harvested (Ha) Maize Production Qty (tonnes) Tea Area Harvested (Ha) Tea Production Qty (tonnes) Wheat Area Harvested (Ha) Wheat Production Qty (tonnes) Sugar Cane Area Harvested (Ha) Sugar Cane Production Qty (tonnes)

379,000 4,926,000 10,758,999 21,100 7,400 220,000 133,110 819,000 2,177,357 19,100 34,334 10,000 18,000 19,500 1,950,000

371,000 4,456,000 11,091,751 30,300 10,600 265,000 175,346 844,000 2,354,444 20,000 44,923 11,000 19,000 20,000 2,000,000 45,680 48,663 49,182 218,781 862,000 2,361,954 195,871 887,000 2,432,813 2,505,797 167,952 11,434,795

Sources: FAO, UBOS, UCDA,, Ministry of Agriculture

Other selected items

Production Qty Cotton(mts) Tobacco( mts) Fish(mts) Beer Cement(mts) Production Qty Cotton(mts) Tobacco( mts) Fish(mts) Beer Cement(mts) Production Qty Cotton(mts) Tobacco( mts) 52,000 1726* 104,447 1966 63 2531 54,700 1097* 80,332 1967 94 3811 1958 359 1959 397 1960 389 1609 61,600 1148* 71,056 1968 35 4360 16,913 1961 344 1792 60,188 11,410 64,884 1969 28 3932 1950 301 1951 157 1952 309 325 23,400 1953 331 323 23,800 1954 363 315 24,620 439* 40,989 1962 342 1966 63,500 12,233 55,042 1970 18 3060 1955 378 294 34,365 782* 49,234 1963 230 1887 68,500 12,288 54,282 1971 23 3330 1956 392 108 44,950 1201* 58,957 1964 147 3018 71,600 14,129 71,524 1972 46 3978 50,531 1365* 85,434 1965 113 2952 76,349 18,666 128,742 1973 55 3978 1957 277

21

Fish(mts) Beer Steel(mts) Cement(mts) Soap(mts) Cor.Iron shts(mts) Production Qty Cotton(mts) Tobacco( mts) Fish(mts) Beer Steel(mts) Cement(mts) Soap(mts) Cor.Iron shts(mts) Production Qty Cotton(mts) Tobacco( mts) Fish(mts) Production Qty Cotton(mts) Tobacco( mts) Fish(mts) Beer Soft Drinks(lts) Cement(mts) Cut flowers(mts) Leather (sqm) Cor.Iron shts(mts) Production Qty Cotton(mts)

85,190 21,666

99,616 22,025

108,400 20,266

125,300

139,075 27,767 19,521

162,317 34,962 16,432 205,110 13,619 14,341 1978 14 1710

164,080 37,945 11,065 166,084 12,860 1979 18 990 45,591 14,295 142,675 6,331 5,139 1980 41 810

120,514

139,507

154,853

172,946

191,072 12,925 11,914

1973 55 3978

1974 73 986

1975 23 2001

1976 14 1800

1977 9 1800

45,591 14,295 142,675 6,331 5,139 1981 32 720

43,488 11,513 153,035 5,068 3,964 1982 51 647 1983 18 1650 1984 37 1969 1985 45 1613 1986 80 949 1987 50 1214 149.7 1995 90 6851 217.4 51,238 56,537 88,767 133 41,000 2,296 40,000 5,782 2000 125 20,000 14,331 2001 150 15,000 25,134 2002 2,000 31,782 2003 1988 70 2639 214.3 1996 95 6349 222 64,158 70,222 175,046 380 101,000 29,883 2004

1989 100 3456 213.5

1990 85 3322 245.2

1991 90 3600 254.9 19,529 25,982

1992 95 4680 264.9 18,718 21,768 37,881

1993 125 5183 276 23,882 26,899 51,996

1994 200 6548 213.2 30,822 41,001 45,227

26,920

27,138

1997 60

1998 100

1999 60

22

Tobacco( mts) Fish(mts) Beer Soft Drinks(lts) Cement(mts) Cut flowers (mts) Leather (sqm) Cor.Iron shts(mts) Production Qty Cotton(mts) Tobacco( mts) Fish(mts) Cement(mts) Production Qty Cotton(mts) Tobacco( mts) Fish(mts) Beer Cement(mts)

8195 219.3 89,638 65,364 289,560 537 26,000 29,710 2005

11333 217.1 110,469 68,699 321,329 1,522 88,000 28,418 2006

20864 230 117,845 80,836 347,274 1,523 39,414 2007

22837 227 10,087 72,623 367,470

22572 227 107,914 81,680 431,084

22572

22572 247

22572 434.8

506,000

558,000

360,000

34,690 2008

58,054 2009 2010 2011

416.8 650,000 1958 359 52,000 1726* 104,447

367.2 857,609 1959 397 54,700 1097* 80,332

374.3 995,807 1960 389 1609 61,600 1148* 71,056

364.8 1,193,36 1 1961 344 1792 60,188 11,410 64,884

366.6 1,162,24 1 1962 342 1966 63,500 12,233 55,042

381.9 1,347,32 7 1963 230 1887 68,500 12,288 54,282 1964 147 3018 71,600 14,129 71,524 1965 113 2952 76,349 18,666 128,742

Source: Cooperatives Dept Note:* Beer was originally gallons/ (mts) stands for metric tones.

PRODUCTION STATISTIC FOR GOLD, COPPER, COLTAN AND IRON FROM 1950 TO 2010 YEAR Gold (Kg) or Ty Oz Copper (tons) Cobalt Coltan (Tons) Iron ore (Tons) or gm (Tons) 1950 585.5 Ty Oz Nil Nil 5.09 Nil 1951 224 Ty Oz Nil 19.16 1952 166 Ty Oz Nil Nil 4.06 Nil 1953 511 Ty Oz Nil Nil 3 Nil 1954 568.04 Ty Oz Nil Nil 3.77 Nil 1955 449.71 Ty Oz Nil Nil 0.67 Nil 1956 293.11 Ty Oz 175,719 Nil 4.38 Nil 1957 7,388 Ty Oz 434,831 Nil 0.68 Nil 1958 7,753 Ty Oz 473,485 No Data No Data available available 1959 9,145 Ty Oz 638,066 No Data No Data

23

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

8,645 Ty Oz 12,299 Ty Oz 9,327 Ty Oz 10,193 Ty Oz 12,480 Ty Oz 50.10 Ty Oz 2.75 Ty Oz 48 gm Nil 97 gm 93 gm 67 gm No Data available No Data available No Data available No Data available No Data available No Data available No Data available No No No No No No No No No No No No No No No No No No Data available Data available Data available Data available Data available Data available Data available Data available Data available Data available Data available Data available Data available Data available Data available Data available production production

814,885 834,689 891,444 901,208 904,380 943,119 943,048 872,723 926,769 984,824 1,004,752 948,354 907,593 821,305 708,230 479,213 396,485 157,022 44,942 23,583 Nil 12,031 1,818 No production No production No production No production No production No production No production No production No production No production No production No production No production No production Nil Nil Nil 7.6 3.8

available No Data available No Data available No Data available No Data available No Data available No Data available No Data available 27 8.8 1.9 2.7 4.1 No Data available No Data available No Data available No Data available No Data available No Data available No Data available -

available No Data available No Data available No Data available No Data available No Data available No Data available 21.933 23,939 Nil 235.1 241 495 No Data available No Data available No Data available No Data available No Data available No Data available -

24

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(July)

No production No production 4.73 Kg 55.98 Kg 0.142 Kg 2.565 Kg 40 Kg 1.447 Tons 46 Kg 21.919 Kg 25.43 Kg 1.86 Kg Nil Nil

No No No No No No No No No No No No No No

production production production production production production production production production production production production production production

77 420 634 459 16.24 457 638 688 697 664 673 624 383 Nil 2,712.0 2.2 6.463 16.240 0.376 0.273 0.103 0.10 Nil 0.05 0.01

61.28 2,400.88 1,097.29 Nil Nil Nil 208.530 Nil 365.99 1,739.90 971.95 3,794.74

Source: Ministry of Energy

In the case of increased gold production, this is when Busitema Mining Cie, Kisita Mining Co and Gold Empire were in production. Figures of copper production are of mill and not mine production

Annual milk production in million Litres per Annum

Year Total Year Total Year Total Year Total Year Total Year 1950 8.1 1958 10.3 1966 14.4 1974 6.2 1982 430 1990 1951 8.3 1959 10.7 1967 15.1 1975 5.1 1983 435 1991 1952 8.6 1960 10.9 1968 15.9 1976 4.2 1984 420 1992 1953 8.8 1961 11.3 1969 16.7 1977 2.3 1985 400 1993 1954 9.1 1962 11.7 1970 17.6 1978 0.764 1986 395.4 1994 1955 9.4 1963 12.3 1971 18.5 1979 0.451 1987 410 1995 1956 9.7 1964 12.9 1972 19.5 1980 420 1988 420 1957 10 1965 13.6 1973 16.4 1981 420 1989 430 1997

1996

25

Total Year Total Year Total

480.8 1998 615 2005 1,233

550 1999 758 2006 1,400

570 2000 829 2007 1,450

580 2001 900 2008 1,500

575 2002 983 2009 1,500

551.2 2003 1,067 2010 1,540

590 2004 1,150 2011 1,663

600

Source: DDA figs.

In terms of enterprises (industrial, agricultural or services) attracted to Uganda since 1986, the whole list is attached in appendix I. However, here-below I list some of the big ones: Kakira (rehabilitated); Lugazi (rehabilitated); Kinyaara (rehabilitated) and completed; Casements; Tembo Steel; Pickfare Industries Ltd; Cable Corporation of Uganda Ltd; Nice House of Plastics; Mukwano Group of Companies etc.

26

Indeed, UMA has got 500 members. Most of them are post 1986 or were rehabilitated after 1986. Between 1894 and 1986, the following were the factories and service companies that had located into Uganda: Imperial British East African Company (IBEACO) Uganda Company Jamal Ramgi A. Bauman Company Lugazi Sugar Factory Madhivan Group of Companies

Etc.

(the full list is in appendix II)

The total number of enterprises was about 1,941 compared to the current 4,800 enterprises (as of today). The list for the post 1986 inward bound industries could have been much longer if it was not for the constraints prominent of certain bottlenecks. are two: The electricity most and bottlenecks

transport (roads and railway). Absence of these (cheap

27

electricity

and

transport

costs)

keeps

costs

of

manufacturing and doing business in Uganda high and renders many industries un-competitive. In spite of that constraint, the enterprises listed above are profitable because of the great distances from the Oceans. That is Kampala to Mombasa 1,119 kms by road (1,330 kms by rail), Kampala to Dar-es-Salaam 1,781 kms by road via Mutukura (by rail and water 1,590 kms), Kampala to Matadi Port 9,269 kms (by air 2,300 kms), Kampala to Port Sudan 3,227 kms by road (by rail 3,732 kms), Kampala to Djibouti 2,980 kms (by air 1,700 kms). This makes some of Ugandas products (industrial or agricultural) competitive within Uganda and the region. In order to break into international markets, however, we need cheaper electricity and cheaper transport costs. The delay on expanding electricity supplies and modernizing transport arteries has been on account of two problems: relying on external funding which is not

28

seriously committed to Africas transformation and internal political sabotage by elements of the opposition while the NRM members in parliament either support them or keep quiet. Although external funding is unreliable, if there is unanimity, we can cover more mileage. Both Bujagali and, more recently Gulu road, have been sabotaged by some Ugandans feeding false stories to outsiders who are only too ready to believe those frivolous tales. We now have our funding although still limited. We can now use this limited funding of our own to eliminate these bottlenecks. Kampala-Mityana, Mbarara-Katunguru, roads, etc. reconstructed; they I have nothing but excitement Kampala-Kafu, Bugiri-Tororo, are tarmac Lira-Kamdini, Tororo-Soroti roads being when I watch the progress of Kampala-Masaka,

These are not just tarmac roads being Mine is the

reconstructed with our own money!!

excitement of a baby who starts to walk on its own for

29

the first time (kutambuuka or kutiritimba, woro, wotho, etc). It marks a phase when this organism (the baby) that has been depending on other organisms (mother, ayas, elder siblings, etc.) to carry it, can now walk on its own even in this limited way. The same story goes for electricity efforts at Bujagali where we provided bridge financing of US$ 75 million, Nyagak where we put in US$ 1.15 million to finish the work, Mpanga where we contributed US$ 15 million, etc. This point needs to be clear to all the NRM leaders and to other Ugandans so that we do not squander this chance with indisciplined demands for wages and other extravagancies. With our oil resource, the pace of Our building our infrastructure will be accelerated.

problem is this delicate phase of the need to develop our infrastructure in order to create a base for cheaper manufacturing at a time when we have not started exploiting our oil. Should we continue with lack of focus until we start extracting our oil? Or should we tighten our focus on priorities that will give us aspects

30

of the modern infrastructure that we need to ensure cheaper manufacturing and lower business costs, even before we start exploiting our oil? In any case, the oil discovered so far will only last for 30 years. What will happen after that? My answer is that we should start straight away and suppress some of the other expenditures for a while. There is also the other crucial question: What would we have done if we had not discovered the oil? What did other countries that do not have oil and did not plunder other countries through imperialism do in order to modernize? There are countries like China, India, Malaysia, Singapore, South Korea, Sweden and many others, which did not colonize anybody but they have developed. We need to also dispose of one question: industry and services? What will

bring more prosperity to people agriculture or In my speech on the NRM Vision, I pointed out that industrial products bring in more money because they are produced by people who

31

have more skills such as engineers, technicians, scientists and other skilled people. people who have no skills. Agricultural products, on the other hand, can be produced even by Industrial products are more difficult to make; therefore, they generally bring in more money than the agricultural ones and crude mineral products although that is not always the case. I will come back to this issue later; the issue of higher commodity prices (raw material prices) in recent times. In the Marxist labour theory of value, it says:
that the value of an object is solely a result of the labour expended to produce it. According to this theory, the more labour or labour time that goes into an object, the more it is worth. Marx defined value as "consumed labour time", and stated that "all goods, considered economically, are only the product of labour and cost nothing except labour".

In other words, the more labour hours you spend in making an item, the more expensive it is. Industrial products require more labour time.

32

Fortunately, in the case of Uganda, we do not have to face that choice of either industries or services on the one hand or agriculture on the other hand. We have the potential for all the three: industries, agriculture and services (tourism, professional services, etc). However, agriculture alone, without industries, is a potential disaster. You work so hard, you mine I always give the example of nutrients from your soil (phosphorus, potassium, etc), for very little returns. coffee. A kilogram of unprocessed coffee in Uganda is US$ 3 (highest world prices in the last 35 years) because coffee prices have gone up recently. It is normally US$ 1 per kilogram. When the same kilogram is processed in London by Nestle, it goes for US$ 40+. Even if you remove transport costs to Europe, if that kilogram had been processed here, we could have got, at least, US$ 12.87 from the roasted and ground coffee. We are now getting US$ 400 million per annum. If all of it had to be processed, we would get US$ 3.6 billion if you deducted the transport costs.

33

Today, the global value of the coffee business is US$ 148 billion. recently. However, the coffee-producing countries This has just gone up This is only get US$ 42 billions!!

It used to be only US$ 5 billion.

modern slavery. You cannot, however, do this unless you have two factors: good infrastructure and capable investors. Good infrastructure, as already pointed out, ensures lower costs of doing business in an economy and, therefore, improves the profitability of business therein. Therefore, infrastructure must take precedence over other considerations outside security as well as law and order. When it comes to investors, we must go back to basic economics. We need to remind ourselves of the factors of production. There are four of them: land (natural resources), labour (human beings), capital (physical or financial) and entrepreneurship (the skills to identify opportunities and utilize them to make profits and satisfy human needs). This is where capitalism

34

differed from Marxism. You remember Marxism only talked of labour as the basis of value. factors of production: An investor (entrepreneur), therefore, accounts for 50% of the four capital and entrepreneurship. A country may have the natural resources and the labour; however, if it fails to attract capital and entrepreneurship, it will remain backward. Africa, Burma and, to some extent, the Philippines are good examples. They have a lot of natural resources and a lot of human resource, yet they are more backward than countries like Japan, South Korea, Singapore, just to mention but a few, that are natural resource poor but very prosperous because of capital and entrepreneurship. This is a point many people in the Ugandan political class fail to see. Hence, the arrogance, conceit and chauvinism of many actors vis-vis investors in Uganda. You hear people talking of Omuyindi (the Indian) in a hostile manner. Yet these Indians are the greatest friends of Ugandas development and of our people. They produce sugar,

35

steel bars (mitayimbwa), cooking oil, soap and many other products. These are products we consume. They provide employment; they buy our raw-materials; and they pay taxes that educate our children, modernize our infrastructure, pay salaries of public servants, support our Defence sector, build health units for us, etc. Why should any serious Ugandan be hostile to these people? This is a very big failure on the part of the Ugandan political class. Economies are measured in two ways: Gross

Domestic Product (GDP) and Gross National Product (GNP). GDP measures the value of production on the Ugandan soil by whoever is doing it. GNP, on the other hand, is a measure of production by our citizens wherever they are doing it either here or outside. Countries are rich, mainly, because of the size of GDP. Using purchasing power parity (PPP) method, USA has got a GDP of US$14.66 trillion (2010 est.), UK has got GDP of US$ 2.247 trillion (2010 est.), China US$

36

10.09 trillion (2010 est.), India US$ 4.06 trillion (2010 est.), Japan US$ 4.31 trillion (2010 est.), Germany US$ 2.94 trillion (2010 est.), Sweden US$ 354.7 billion (2010 est.), Malaysia US$ 414.4 billion (2010 est.), South Africa US$ 524 billion (2010 est.), Kenya US$ 66.03 billion (2010 est.), Tanzania US$ 58.44 billion (2010 est.), Uganda US$ 42.15 billion (2010 est.) and so on. The GNP of these countries, on the other hand, is as follows: USA US$ 14.6 trillion, UK US$ 2.4 trillion, China US$ 5.7 trillion, India US$ 1.6 trillion, Japan US$ 5.4 trillion, Germany US$ 3.5 trillion, Sweden US$ 469 billion, Malaysia US$ 220.4 billion, South Africa US$ 304.6 billion, Kenya US$ 31.8 billion, Tanzania US$ 23.4 billion, Uganda US$ 16.6 billion, If our local investors are able to invest, then, it is good. We support them appropriately. Who has stopped them? Why, then, should we be hostile to people who

37

are coming to add on to the expansion of our economy? Here-below is a sample of countries showing the number of days it takes to get an investment license in some countries around the world: Uganda 25 days Malaysia 17 days Singapore 3 days U.K. 13 days Mauritius 6 days Why should Ugandans undermine their own interests? I always hear of the talk of Black empowerment. This talk is inappropriate for Uganda. Africa National Congress (ANC) in South Africa took over a developed economy with a lot of money. By the time ANC took over South Africa, the GDP was US$ 90 billion, it was generating 36,000 mgws of electricity, it had developed infrastructure, good tax collection, etc. ANC,

38

therefore, had money to use to support those Black businesses/Black empowerment. The tax collection of Uganda in 1986 was only Uganda shillings 5 billion. We were not able to support schools, health units, etc. How could we support Black businesses? If you support Black businesses without

infrastructure, how will the Black Businesses operate and make profit? Copyism is not a serious therapy. The NRM approach of achieving minimum recovery was correct and it achieved results as indicated above. Yet we could have achieved more if it was not for the persistent mistakes of those within NRM that oppose this vision. This opposition has maintained certain disequilibria in our economy. Take the example of the disequilibrium between exports and imports. This is a result of endless sabotage by some NRM elements in Parliament of many projects I initiate and also, to some extent, the resistance by some civil servants.

39

The latter is being overcome. We must overcome the sabotage by some NRM elements in Parliament. Some of the sabotaged projects are the following: i) Construction station; ii) iii) iv) v) Privatization of Uganda Airlines; Expansion of Lugazi Sugar production; Amuru sugar factory; Leasing Uganda Airlines to South African Airlines; vi) Leasing the Dairy Corporation to the Thai investor; vii) Kalagala hydropower project; viii) Karuma power project etc. of Bujagaali hydro power

40

The following projects succeeded on account of my insistence: i) ii) iii) iv) Bujagali hydro power project Garden City shopping mall; Aya hotel in Nakasero; Leasing the Dairy Corporation to an Indian investor; v) Game shopping Mall; etc.

Why do I have to struggle against the NRM elements to expand Ugandas GDP? Before we go to the rectification measures, I want, again, to point out the superiority of industries and services over agriculture in providing employment in a country. A country like the U.K. has got 3,400,985 manufacturing and service enterprises (2010 est) compared to 21,301 for Uganda. Italy has got 3,543,748 manufacturing and service enterprises (2007 est) and Belgium has got 576930
41

(2007 est). India has got 363,567 for manufacturing alone (2007 est) while Vietnam has 38,384 (2007 est). It is this density of manufacturing and service enterprise in a country that marks the difference between a modern country and a backward one. Many times, I have told Ugandans that in the U.K., the proportion of population in agriculture is 1.4%; industry 18.2%; services 80.4% (2006 est.). In the USA, it is: farming, forestry and fishing 0.7%; manufacturing, extraction, transportation and crafts 20.3%; managerial, professional and technical 37.3%; sales and office 24.2%; other services 17.6% (2009). In South Korea, agriculture 7.3%; industry 24.3%; services 68.4% (2010 est). On the other hand, backward countries have the following labour 34.4%. force distribution: Uganda, agriculture, Forestry and Fishing 65.6%, services and industry Kenya, agriculture 75%, industry and Etc. With respect to Ugandas GDP services 25%. Nigeria, agriculture 70%, industry and services 30%.

42

composition by sector, the contribution of Agriculture to GDP is 23.6%, Industry is 24.5% and Services is 51.9% (2010 est.). The huge majority of people are in industry and services in the developed countries. This is the only correct road for Africa. Land is not elastic. With Yet increasing population, the land cannot accommodate an indefinite number of people in agriculture. industries and services can accommodate a large number as long as the products they make or services they When provide I see have got consumers. delaying or Hence, sabotaging the a importance of markets to absorb what we produce. anybody manufacturing or a service enterprise, I feel very sorry for Africa. What sort of blindness is this? The arguments about environment are wrong. The

best way to protect the environment is to electrify the whole country, to industrialize it, to seize every

43

moment modernize

to

attract

service

enterprises you

and

to the

agriculture.

When

electrify

country, you stop the cutting of trees for firewood. In Uganda, each year 180 million cubic metres of wood is destroyed on account of being used as fire-wood. To end this genocide on trees, we need electricity for all. Peasants in search of agricultural land on a primitive basis are the other greatest threat to the environment. How many peasants have invaded forest reserves? What is the medicine for this? Industrialization is the medicine. With industries absorbing the peasants as factory workers, it will be easier to preserve the forests and even expand them. Without factories and electricity, it is impossible to preserve the forests. Factories in Europe and America, helped them to restore the forests. When you are in the USA, Washington D.C, you may think that you are in a forest. As I wrote on Mabira in 2007, it will be easier for a camel to go through the eye of a needle than for a

44

backward country to preserve the environment. Africa is lack of factories.

The

problem of Africa is not lack of forests. The problem of In 1900, when the whole continent was colonized, much of it was a forest. Why did the forests not prevent Africa from being colonized? Factories, some of them producing weapons, will guarantee the sovereignty of Africa as they have for small countries like Israel as well as help us to guard our forests. Factories will suck population from agriculture and also generate money to enable us to protect these forests and plant new ones. It is much, much easier to grow trees in Uganda than it is to attract factories. The King of Sweden told me that a pine tree in Sweden takes 120 years to grow. In Uganda, it takes only 15 years. I have, myself, grown the pine trees (cassea siamese), burmese teak, etc., as well as the indigenous trees such as mahogany (khaya anthortica, khaya grandiflolar, khaya senegelensis), omusizi (mysopsis eminii), omusisa, omugavu (albezia

45

coraria), etc. I have also preserved the indigenous trees of Rwakitura and Kisozi such as: Omukoma (grewia mollis), emiko (erythrina abyssinica), emitongore, emityaaza (acacia species). We, the cattle keepers, the bad trees we fight are: obugando (acacia hockii), kagyenzanda (capparis species decidua), etc. We also fight omuteete (cymbapogan afronadus) and egaashe. There is also omushojwa (imparata cylindrica) and amatojo (acanthus arboreus). We fight these trees and grasses because they are very invasive and are not compatible with pasture. emburara (hyperrannia (chrolis The good pastures are: rufa), ejubwe (bracharia

brizantha), obuterante (panicum maxima and minima), orunyankokoore purpureum), etc. (Pennisetum species. guyana), oruchwamba (cynodon dactylon), ekibingo (napier grass, Pennisetum I also hear, of Kikuyu grass and guatamala grass clandestinum)

(Euchlaena luxurians) although I have never seen these

46

It is much easier to grow these trees and grasses than to attract factories as well as services in Uganda and Africa. The problem of Africa has been absence of It is this continued factories and modernization.

absence of factories and modernization that is now beginning to damage the environment as already pointed out. Too many people in agriculture, absence of factories and lack of electricity are the problems. There is also the problem of youth unemployment. The Hon. Beatrice Anywar, nyaara, when we met recently, asked me the following question: Mr. President, Mzee wa Kaazi, do you know that many people in Uganda misunderstand you because of Mabira? My answer was: This is not the first time sections of Ugandans misunderstand me and vilify me because of my being right. I told the Hon. Anywar, that on the 25th of January 1971, Amin took over power. Huge crowds in Kampala turned up to welcome him, the

47

following day, on the 26th of January, 1971. When I heard Amin, on the radio, failing to even read the oath of office, I left the following day, on the 27th of January 1971, to oppose Idi Amin. I was vilified and demonized by the Ugandans, especially my DP comrades among the Banyankore. They called me ekirare (vagabond). The ekirare (vagabond), however, turned out to be correct and the many Ugandans turned out to be wrong. I cannot associate myself with the blindness which says that preserving underdevelopment (failure to develop factories and electricity) It is is not. part of With environmental conservation.

industrialization, electrification of the whole country and the attraction of hotels as well as other service companies, it will be easier to conserve our environment. I am the one that rescued Mabira from encroachers in 1986. We should not only protect However, the Mabira but we should expand it.

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industrial town of Lugazi must also expand around the core industries already in place such as sugar producing factories, light engineering industries (e.g. UGMA), cable Corporations, ethanol industries and electricity generation. Expansion of the sugar industry is the core of all this. Conservation and industrialization are all possible. rationalization of land use. The disequilibria in Ugandas economy are curable. The only thing needed is for NRM to be of the same view on these key issues. The economy is healthy The because we, the producers in agriculture, are there. We just need reinforcement by other partners. our economy grow rapidly: 1. Legislate against riots so that tourists and investors increase their flow into the country. following are the measures we need to take to make What we need is

49

2. Add value to most of our coffee exports through roasting and grinding so that we get more jobs and more money in foreign exchange earnings. 3. Add value to the maize so that we export maize flour as well as manufacture animal feeds for the animal industry such as cattle, poultry, etc. 4. Attract fruit factories to Kayunga, Luwero, Soroti and Masaka areas which have already responded to our call for fruit growing; later on West Nile will be added. 5. Expand the growing of tea on the bare hills of the South-western parts of Uganda so that we increase our foreign exchange earnings far beyond the US$ 92 million per annum we are earning now; we can go to US$ 1 billion with tea alone per annum. 6. Lease the LAP and Phoenix textile factories to capable investors to produce textiles out of our cotton which is now being exported as lint; this
50

will multiply our export earnings in the cotton sector from the current level of about US$ 106 million per annum for lint cotton, by a factor of ten, to about US$ 1060 million. 7. Expand the already successful milk and dairy products sector by aiming at having six (6) zero grazing cows per homestead; this will give us 24 million cattle from the present level of 14 million cattle; the national herd had been reduced to three (3) million in 1986; this will enable us to produce about 240 million litres of milk per day. This will generate a lot of milk and other milk products for export. The milk which is processed in Uganda is already saving US$ 94.6 million if it had to be imported. million per annum. The milk sector has the potential to export products worth US$ 175.6

51

8. Beef and leather is another sector where there is a big potential. You have seen cattle being transported on Lorries to Juba. Like maize, when you export a live cow, you are also selling the leather (the skin). Yet these skins are important for leather tanning and manufacturing of shoes. We are, however, squandering US$ 42.2 million on the import of shoes and other leather products. Yet we have our skins that are being wasted. A number of abattoirs are coming up. The Minister of Industries should monitor these projects so that they take off. additional ones. leather not tanning If we do not attract enough We must also have enough industries Uganda and shoe abattoirs, then, the Government should build

manufacturing industries. If the private sector is available, then, Development in shoe Corporation (UDC) should invest

manufacturing so that we stop the haemorrhage of dollars spent on importing shoes.

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9. A bit of wheat is grown in Sebei.

Much of this We should

wheat is sold in Kenya because the road from Kapchorwa to Bukwo is impassable. tarmack that road. combine harvesters. road. I gave these people some The problem now is the We

Sebei, parts of Ibanda and Buhweju can

grow wheat and save us from importing it.

squander US$ 130.3 million on importing wheat.

10.

Some people in Sheema started growing trees it to for feeding silk-worms sub county and in When I became aware of this, I Kashongyi

mulberry introduced

producing silk.

Kiruhuura. This project can be expanded to some other areas. I am told that the global demand for silk products is of the magnitude of US$ 2.6 billion.

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11.

There is the goldmine of banana products. Once this project is

Dr. Muranga is assisting me to process bananas into flour and starch. annum. complete, it will earn us about US$ 20 million per This is just the beginning. Apart from the flour, we can get starch from bananas, paper, etc. Dr. Kyamuhangire is working on the banana juice project. projects. We have been funding these

12.

We have also been funding, with the approval for killing snails that

of Parliament, medicinal products e.g. oluwoko (phytolaca-dodecandra) medical products. cause bilharzia, larvicide and other possible These are products with potential for multi billions of dollars.

13.

Wood products are also another potential There is a

source of local and foreign money.

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processor of wood products in Jinja by the names of Sarbjit Singh Rai. I visited his factory, Nile Ply, during the campaigns. I think he only needed land in Nakasongola to grow more forest products.

14.

It is not only agriculture and tourism that There is the mineral

can earn us more money.

sector linked to industry. There is the project for fertilizers from the phosphates in Tororo. These fertilizers would support and boost agriculture, support the sulphuric acid industry and also earn dollars through regional exports of fertilizers. We need to solve the problem of compensations for the villagers that are on that land so that the project begins. If the investors who were given the license do not have the capacity, then, we should get another investor who is capable. This project has delayed for too long. NSSF could invest in it.

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15.

There is the iron ore project of Muko in There are with that are already, working

Kabaale and Sukuru hills in Tororo. companies

Chinese or Indians, to extract iron (ekyooma) from the iron ore (obutare). This will form the basis of our steel industry. In the past, we had the complication of having to get coke (coal) from Tanzania, given the poor transport routes. We now have gas from our oil fields. This gas can be used to remove oxygen from the ore (as a reducing agent) and give us pure iron or steel after some impregnation with carbon.

Building power dams and other projects without using our own cement and steel will render them very costly not least because of just transport costs. 16. We have quite a lot of uranium in the areas of Pakwach, Kitgum
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Arua,

East, Kitgum

West,

Masindi near Lake Kyoga, Fort Portal, Kilembe area, Butiti area towards Mubende, Kyenjojo, Ntungamo near Kafunjo, Buhweju and Hoima near Mabale. This is a strategic mineral. No sooner was it discovered, than companies from Canada and other places came and offered to mine it and take it away. I told them that not a single kilogram of uranium will ever leave Uganda as long as I am President. I cannot join the usual blindness of Africa. Uranium, apart from making bombs for terrorizing the world, can also be used to make cheap electricity for a long time because of its great power. Our potential for hydro-electric power on the whole of the Nile valley and its numerous tributaries is about 4,280 mgws. I hear the geo-thermal potential is about 500 mgws. A modern country like Uganda needs about 50,000 mgws of electricity. I get this figure by looking at the electricity consumption of the present developed countries. By the end of

57

apartheid, South Africa was generating about 36,000 mgws. They are now generating about 42,000 mgws. Yet they have been in big power shortage recently. A small country like Norway, with a population of only 5 million, generates about 26,000 mgws. Even if you discount the problem of winter that they face, you can see that a modern economy needs a lot of electricity. USA consumes 1.5 million mgws of electricity. From where, then, will Uganda get long term supply of electricity on a big scale? In my view, the only cheap source of electricity is nuclear energy. Nuclear energy is also important for medicine and agriculture (killing tse-tse flies). preparing for this through training. African countries with I have The only hydroalready instructed the Ministry of Energy to start considerable

electricity potential are Ethiopia with about 80,000 mgws and DRC with about 100,000 mgws. With developed economies in these two

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countries, this potential would barely be enough for these economies. Yet you hear platitudes This is remain The being bandied around that Congo can supply electricity for the whole of Africa. probably electricity assuming and with that no Africa will

backward with only 10% of the population using industries. population of Africa is now one billion people. The population of the USA is about 320 million people. The USA is consuming, as already The pointed out, about 1.5 million mgws.

potential of hydro-electric power on all the rivers of Africa is only about 360,000 mgws. Where will developed African countries get energy from? Unless it has been biologically proven that Africans do not need electricity, then, the only way forward is nuclear energy. There is always talk of solar energy, wind energy, etc. The unit cost of these forms of energy is still high. The cost of producing one unit of solar energy is

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currently 36.2 American cents; the cost of producing a unit of wind is 12.4 American cents, etc. This is not too high. Do we have strong People wind in Uganda apart from Karamoja? bio-gas. because This these should are also be

have talked of the bio-mass energy producing examined. resources. Electricity from oil and gas cannot be indefinite exhaustible Whatever angle you look at the issue, nuclear energy is the sure way of getting cheap energy. The cost per unit of nuclear energy is between 2.1 and 4.8 American cents (depending on the size of the reactor). Therefore, exporting uranium would be like a foolish villager who does not have firewood in his own house but donates whatever firewood he comes across to his/her neighbour or a villager without paraffin in his house donating whatever paraffin he gets to his/her neighbour. The uranium should stay in

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the ground until we are able to utilize it for our long term use. It should never be exported. 17. Uganda cannot only depend on agriculture,

tourism and minerals or just depend on agrobased industries, tourism-based and mineralbased industries important as they are. by That the much vilified facility Mahendra can literally There in are also products of light engineering, pioneered Mehta partnership with the Government in UGMA. UGMA fabricate The anything: it can cast sugar-rollers and grove them, it can fabricate machine parts, etc. NRM has, in addition to rehabilitating Mehtas UGMA, also set up other engineering facilities such as the Luwero industries, the Uganda Industrial Research Institute (UIRI) now headed by Dr. Kwesiga, Makerere College of Technology where they have pioneered an electric car, etc. We are now aiming at making machine-making

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machines so that we can make our own machinetools. With our steel industry and this capacity to make our own machine tools, Uganda will be well on the way to develop an autonomous industrial base. 18. However, you cannot do all this if you do not

develop infrastructure. Why? This is because all businesses depend on developed infrastructure (roads, the railway, electricity, piped water, telephones, ICT backbone, etc). If you do not provide these, the costs of doing business in Uganda will be so high that businesses will not make profits. If they do not make profits, they cannot survive let alone expand. Jobs will not be created, exports will not be increased, imports will continue to be more than the exports, taxes will not expand, social services will, therefore, not be adequately provided and salaries of public servants will not be raised. It is all a linked

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chain. There is a dialectical relationship among all these factors. They are all needed. 19. The NRM enabled Uganda to discover oil and gas in 2006. This was due to our correct decision of training our own people and creating the It is petroleum unit in the Ministry of Energy.

this unit that did the seismological studies to add to the aero-magnetic studies that had been done earlier on, the two of which led to the discovery of oil and gas. Our studies discovered the areas where the organic matter was cooked to produce the oil and gas and the traps (domes) where the oil and gas accumulated and were stored. The oil companies only came in to confirm what our unit had discovered by drilling physically to reach those already observed oil reservoirs. We did not have the money to do the drilling and it was not necessary. the Oil and gas are not as important to as agriculture, industry and economy

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services. Oil and gas are finite resources. They will be exhausted one day. Agriculture will not be exhausted unless the climate changes drastically. Industrial products will be produced indefinitely as long as Ugandans have skills to produce them. Using purchasing power parity (PPP) method, the oil rich Saudi Arabia has got GDP of US$ 622 billion (2010 est.) while Japan, without oil, minerals or even agriculture, has got GDP of US$ 4.31 trillion (2010 est.). South Korea now has Since we GDP of US$ 1.46 trillion (2010 est.).

discovered the oil and gas, the agents of foreign interests have been running up and down urging us to produce the oil as quickly as possible so that we export it to sustain the good life of outsiders. I have rejected these pressures. This oil has been in the ground for the last 20 million years and it can stay there for more years until the Ugandans get a formula that is acceptable to them. We insisted on building a Refinery and

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rejected those who were pressurizing us to export crude oil. They claimed that a Refinery was not economical. We rejected this. Government carried out a feasibility study using a company known as Foster Wheeler as a consultant, which confirmed that a Refinery in Uganda is technically and economically viable as well as profitable. We struggled for the tax which the oil companies had refused to pay until they paid it. We shall use that tax money to start the building of the Karuma dam. This oil will give Uganda financial independence. We should resist ferociously those parasites who want to give away this resource for a morsel of food as did Esau in the Bible. The first oil to be refined will be in the year 2014. 20. Another item we are going to promote for export is the services of our professionals such as the teachers. Our brothers and sisters in Southern Sudan have just got their freedom away from the

65

Arab

colonialism.

They

are

building

their

educational system. Our people, after consulting the Government of Southern Sudan, could go there and make their contribution. Also our brothers and sisters in Burundi are diversifying their educational system by teaching English. Our people could go there and, again, make their contribution. 21. The NRM has put in place the basics of security, economic tax recovery, expanding some infrastructure improving industrial modernization, discovery of oil and gas, expanding collection, education, and health, promoting agricultural

research, contributing to the building of regional markets as well as negotiating for market-access to the international markets, improving peoples housing, etc. The disequilibria which are still there are a result of perennial discord among the NRM leadership on the issue of Vision. Some of us

66

believe

in

rapid

industrialization

and

general

modernization of the economy while others are either not bothered, are easily intimidated by negative elements that do not want the NRM to succeed or are duped by pseudo arguments in connection with the economy. That is why I use every opportunity to interact with NRM leaders on issues of concepts and ideology. That is the greatest bottleneck now and it has been for some time. 22. Pseudo arguments include positions of the As already stated to preserve the

pseudo environmentalists. that it is not possible

above, I can firmly and unequivocally tell you environment in the context of backwardness. The biggest threats to the environment in the world are three: emission of greenhouse gases by the greedy industrialized countries of, especially, Europe and USA that increase carbon dioxide (CO2) in the atmosphere and, therefore, trap heat

67

on the Earths surface instead of reflecting it back into space; lack of electricity in Africa that causes Africans to destroy trees and shrubs for use as firewood; and primitive agriculture that propels peasants to underutilize the land they have, fragment it on account of backward inheritance practices (obusika), use primitive agro-practices on the land, exhaust the land and, then, encroach on the forest Reserves and National Parks. The first danger to the environment is caused by Europe, USA and Japan. Recently, China, India and Russia have joined this group. In the case of Uganda, in particular, the threats to the environment are the two above: lack of electricity and primitive agriculture. problems? What is the answer to these two The NRM Vision not the NGO Each year, in Uganda, the

vision; not the Egyptian vision under Field Marshal Mubarak. peasants are destroying 40 billion cubic metres

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of wood, of which 180 million cubic metres of wood are for energy. Therefore to stop this We need destruction, we need 25,000 mgws of electricity, just to stop the use of firewood. factories, airports, hotels, service companies where the greater part of the population can work so that less people remain in agriculture. I am the one who rescued Mabira forest, I am the one who rescued the Rwenzori National Park, I am the one who rescued the Elgon National Park, etc. I plant trees or preserve them on all my farms. I do not need lectures on protecting the environment. Environment in Africa can only be protected with industrialization and electrification of Uganda. afford electricity. In conclusion, the situation in Uganda would be excellent if it was not for the paralysis created by We also, of course,

need to create jobs in order for the population to

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indiscipline, arrogance and selfishness in the NRM leadership. The NRM, in the past, has created a sound basis for take off. With the building of Bujagali, the planned building of Isimba and Karuma, the large educated force we have already created, a strong National Army we have built, the discovery of oil, the regional market we have put in place with our African brothers and sisters as well as access to international markets, Uganda is in a position to take off and become a middle income country. We must, however, end the indiscipline and the corruption.
I thank you.

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