Understanding Museveni's 4 sectors and 7 ways of wealth creation

On May 8th 2019, during a nationwide sensitization campaign on poverty eradication, NRM party chairman President Yoweri Museveni presented a paper themed “Four sectors and the Seven ways for wealth and jobs creation” in which he pointed out commercial agriculture; industries (big or small); services (hotels, transport, professional services, shops, etc.); and ICT (Business Process Outsourcing -BPOs) as the four sectors for wealth and jobs creation which his NRM party have been preaching to Ugandans since 1995.

Mr Museveni noted that 68% of homesteads in Uganda are still in subsistence farming (growing crops only for food), which he calls “a sentence to poverty for those families that have not woken up.” “Within agriculture, there are four ways of doing commercial activities.

These are: the four acres plan; the micro-activities for those that no longer have the four acres; the medium and large scale farmers; and the plantation agriculture,” Mr Museveni notes.

The four acres plan Museveni recommends 7 activities on account of high returns per acre, per annum.

● One acre for clonal coffee

● One acre for fruits (mangoes, oranges and pineapples)

● One acre for food crops for the family (cassava, bananas, upland rice or irrigation rice, Irish potatoes, sorghum or millet)

● One acre for pasture for dairy cattle (8 of them); poultry for eggs in the backyard piggery; and fish farming.

Projected returns

Coffee, in one acre, can give Shs18million and fruits – Shs12million; milk, Shs 8million. “With poultry and piggery, the sky is the limit because, as long as you buy food for them, in the backyard, you can keep a large number of chicken and pigs.”

Mr Museveni recommended that families with less than four acres can engage in poultry, piggery, onions, tomatoes, mushrooms, some zero-grazing dairy cattle, apples and grapes.

While families with 6 acres and above can use 4 acres for coffee, fruits, food crop, dairy farming, pigs, poultry, fish-farming). They can also produce low value crops like sugar-cane, cotton, tobacco, maize, etc and on the other two acres in addition to the high value activities.

His 4th way is for plantation owners with a lot of land to use it for an industrial mono-crop: sugar-cane, tea, palm oil, etc with assistance from government.

Hence, the four ways out of the seven of creating wealth and jobs, are in agriculture. Coffee, in one acre, can give Shs 18million and fruits. 

 “With poultry and piggery, the sky is the limit because, as long as you buy food for them, in the backyard, you can keep a large number of chicken and pigs.”

5th way is industries - big and small.

Museveni,

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Full paper presented by President Museveni on 8th May 2019

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 PAPER

 

 

BY

 

 

H.E. YOWERI KAGUTA MUSEVENI

PRESIDENT OF THE REPUBLIC OF UGANDA

 

 

 

DURING THE REGIONAL TOUR, 2019

 

Theme:FOUR SECTORS AND THE SEVEN WAYS FOR WEALTH AND JOBS CREATION

 

 

 

 

 

    8th May, 2019         -                     Nakasero

 

 

 

 

 

 

THE FOUR SECTORS AND THE SEVEN WAYS FOR WEALTH AND JOB CREATION

 

The NRM has been, since 1995, telling Ugandans that there are only four sectors for wealth and jobs creation. The four sectors are: commercial agriculture; industries (big or small); services (hotels, transport, professional services, shops, etc.); and ICT (Business Process Outsourcing ─BPOs); etc.

 

Starting with agriculture, I am here to remind you that, as of the last census, 68% of the homesteads were still in subsistence farming ─ that is growing crops only for food ─ no commercial activity.  This is, precisely, what we fought in North Ankole, starting with 1966-end of year.

 

Subsistence farming is a sentence to poverty for those families that have not woken up. Within agriculture, there are four ways of doing commercial activities.  These are:  the four acres plan; the micro-activities for those that no longer have the four acres; the medium and large scale farmers; and the plantation agriculture.

 

With the four acres plan, we recommended seven activities on account of high returns per acre, per annum.  These were:  one acre for clonal coffee; one acre for fruits (mangoes, oranges and pineapples); one acre for food crops for the family (cassava, bananas, upland rice or irrigation rice, irish potatoes, sorghum or millet); one acre for pasture for dairy cattle (8 of them); poultry for eggs in the backyard (ekanyima); piggery; and fish farming along the edges of the wetlands (not in the centre).  Coffee, in one acre, can give Shs. 18million and fruits – Shs. 12million; milk, Shs 8million. With poultry and piggery, the sky is the limit because, as long as you buy food for them, in the backyard, you can keep a large number of chicken and pigs. With my four fish ponds at Kawumu, in half an acre, my people are earning Shs. 64million per year. This is the rescue plan for the concerned families but also for the country in respect of those who still have the four acres. Uganda is a very rich country, with very good land.  However, this good land has been “disabled” by the practice of bad human settlement.  The main cause of “disability” has been the practice of inheritance (kulamira-kusikira) by fragmentation. 

 

The family land which was 4 acres in one generation, becomes half an acre per family because it was shared by eight children (mainly males) on the death of their parents (especially the father). What the four acres can do, half an acre cannot do.  That is why I compare it with “disability”, figuratively. Our “disabled” people are still “able”, that is why we say that disability does not mean “inability”. However, the “disabled” cannot do all that the fully able can do.  They can do some activities but not all the fully able people can do. Hence, the fragmented land can no longer grow cotton, tobacco, sugar-cane, maize, rear indigenous cattle, etc., because they are low value crops or activities. Those only make money when they are done on a big scale. That is why we selected the seven activities: coffee, fruits, food crops, zero grazing dairy cattle, poultry, pigs and fish farming. These will enable the family, with four acres, to be prosperous. However, this will only be sustained if there is no more land fragmentation. Inheritance, hence-forth, should only be by shares (emigabo). With shares, you divide what comes from land but the land itself or even the property (the cattle, the pigs, the houses, etc.),should not be shared.

 

Like we did in 1966, recently (during Easter), in Kiruhuura district, I launched the campaign of creating model family companies where the basika (the inheritors), inherit by shares (emigabo) and not by the fragmentation of the land or the property. 

 

It will create sustainably rich families, generation after generation, instead of the present phenomenon where families become poor again after one generation.

 

The second way is for those families who no longer have the four acres.  Some have as low as 0.25 of an acre.  What do they do?  Our recommended medicine for these are the following activities: poultry, piggery, onions, some say tomatoes, mushrooms, some zero-grazing dairy cattle, may be apples and grapes.  However, these families will have to depend on buying food for the livestock (poultry, dairy cattle and pigs) and for themselves because they can no longer grow it themselves. Again, here, all this is provided there is no more land fragmentation or fragmentation of property. This is the recommended “rescue” plan number two for the families that have less than the four acres. They can still be prosperous provided they know how to handle the “disability” of the land.

 

Kiruhuura district, at least some of the sub-counties, as well as some areas of the cattle corridor (Kabula, Ssembabule, Gomba, Kiboga, Kyenkwaanzi, Nakaseke, Masindi, etc.), have escaped, relatively, the disabling phenomenon of land fragmentation because of my timely de-campaigning of the mistake since 1966.  I disagreed with the Banyankore elite who only concentrated on planning for their families and declared as“the impossibles” the uneducated villagers (Abanyakyaaro). These Banyakyaaro (villagers) were “impossible” in terms of listening to the message of rationalization and modernization. “Tibarikubasika” (they are impossible), was the talk among the elite of Ankole in 1966 when we broke ranks with them. Even there, however, the anti-property fragmentation effort had not been consolidated, until recently when I launched the new campaign. A dying person would say: “Do not divide my land. Let it remain one piece. Any of you who wants to do anything should be free to do it on the land”.  My response is that “that is not enough”. “Any of you doing whatever he/she wants” on the land, is a sine qua non for chaos and inefficiency. One will rear rabbits, another one will bring some non-performing Ankole breeds, another one will grow some pumpkins, etc.

 

The questions are: “How much money is this land generating per annum? What can it maximally generate if it is rationally used?” My present campaign in Kiruhuura is: “Do not only not divide the land but also form legally binding family companies where all of you are directors and decide on what uniform and maximally profitable activities that should be done on that land in order to make that family rich and also make the country rich”.  It is not excusable to continue under-utilizing and misusing what God gave us but, at the same time, crying about poverty and lack of jobs.

 

The North (especially Acholi and some parts of Lango) is still, relatively, free of land fragmentation. Let us immunize that area from this disease of causing “disability” to the land.

 

The third way is to guide those of 6 acres per homestead and above to, first of all, give us some of our projects of the 4 acres (coffee, fruits, food crop, dairy farming, pigs, poultry, fish-farming) but also do for us what the disabled land can no longer do because the country also badly needs those products. 

 

Indeed, some of the rescue plan for the four acres’ people cannot be affordably done if those above six acres do not help us.  The poultry, the pigs, the fish-farming and even the dairy cattle will not be viable if we do not have the local production of maize, cotton seedcake, etc. If we try to depend on imports, we cannot manage. That is why in the Sugar Bill we are saying that unless one has got six acres, he should not participate in sugar-cane growing.  Why?  That is because an acre of sugar-cane will give a farmer Shs.1,300,000 net per harvest when all other costs are removed, which takes 18 months. The second yield reduces the costs of cultivation by dispensing with: additional planting materials, fertilizers, land preparation, bush clearing, ploughing and weeding which is done only once. Therefore, per year (12 months), you are earning about Shs.2.5million per acre. If a family has got only 2 acres of land, that family cannot be prosperous with sugarcane. I, therefore, insist that sugar-cane should not be grown by people of four acres or below. If, however, you have got 6 acres, then you can get us our four acres for some of our seven activities. You, then, remain with a surplus of 2 acres, which you can, then, use for the low value crops of your choice:  sugar-cane, cotton, tobacco, maize, etc. Therefore, the Cotton Development Organization (CDO), the tobacco groups, the grain council, the beef farmers, should enumerate the homesteads with 6 acres and above and enter into agreements with them to produce those crops for the country. This is in addition to the high value activities that they are free to engage in. The medium and large scale farmers have got more flexibility, fortunately. The country should not allow this opportunity to fade away.That is why land fragmentation should be de-campaigned.

 

The fourth way is that of the plantation owners: especially sugar cane and tea. These have alot of land and use it, usually, for an industrial mono-crop: sugar-cane, tea, palm oil, etc. The government will assist these groups.  We have always done so.

 

Hence, the four ways out of the seven of creating wealth and jobs, are in agriculture.

 

The fifth way is industries ─ big and small.  In 1988, we only had 80 factories under UMA with the late Mzee Mulwana. The factories in Uganda are today4,900and they employ 700,000 people. Another 696 have been licensed but are not yet operational. When they are operational, they will add another 67,665 jobs. 

 

Namanve Industrial Park, for instance, already has 31 completed, 197 being constructed and 74 in plan for construction. New Industrial Parks are springing up: Kapeeka, Mbale, Tororo, Mbalala, Buikwe, Kaweweeta, Luzira, Jinja etc., etc.  This is apart from so many individual factories – like the ones, one sees along Gulu, Masaka roads etc.  Lira town, now has 11 licensed and but only about 5 operational factories.

 

The sixth way is services. These are hotels, transport companies (boda-boda, buses, taxis, lorries), professional services: banks, insurance; etc.  There are 8,400 companies in this sector and they employ1.3million persons. This activity is growing and we are happy with it. 

 

The seventh way is ICT (e.g.BPOs). There are 380,896 companies in this sector, employing 1,282,818 people.  This sector is new but growing.

 

Therefore, countrymen and countrywomen, I am here to check on you as to how far you have gone in ensuring that your family enters one of the four sectors and one of the seven ways of creating wealth and jobs.  The farm, the factory, the bus company etc., belongs to one person. It is his wealth.  However, that wealth of his/hers has created jobs for other Ugandans.  As far as leaders are concerned, since you are the “priests” of the NRM and the Revolution, it is your job to sensitize all the families in your area about this campaign to emancipate our people from poverty and joblessness.  However, you must yourself be an example by engaging in wealth and jobs creation yourself.  We shall assist you to do that.

 

The private sector is very useful in this regard. The story of the hired hand versus the actual owner in the Book of John Chapter 10:12 comes to mind. It says:“A hired hand is not the shepherd and does not own the sheep. So when he sees the wolf coming, he abandons the sheep and runs away then the wolf attacks the flock and scatters it”. The NRM deliberately encouraged the private sector because, philosophically, we understood the human being. We know that there are altruistic people who work for patriotic and philanthropic reasons. The Mother Therezas, the Apollo Kivebulayas, the Namugongo Martyrs, some of the African freedom fighters that include the NRM fighters are examples. However, the majority of human-beings work for egoistic reasons. That is what observant people (what people call philosophers),like Adam Smith, detected and recommended that we take advantage of. You see the miracles it has performed in Uganda. Actually, today factories are flooding into Uganda as you can see.  The other day (7th May, 2019), I commissioned ten of them in one day.

 

We can also have parastatals; but the private sector are the ones that easily develop the country without much government money.  However, the government must work on peace and infrastructure.  The latter includes electricity, roads, ICT back-bone, the railways and water transport. Good and cheap infrastructure, lowers the costs of doing business in the economy so that the private sector can make profits. The more profits they make, the more attractive the country becomes as an investment destination. The more companies that come in, the more products (goods) and services they produce, the more jobs they create and the more tax money they generate.

 

As part of expanding the private sector, I started support for youth groups, women groups, etc., engaging in, especially, manufacturing and processing. These will do maize milling, leather-tanning, shoe-making, knitting, jewellery making, food-processing in general, furniture-making, cloth-making, etc. To know that Uganda is rich, look at the import list of what we import.  The following are the imports,much of which can be made here and the dollars we spend on them:

 

 

UGANDA'S TOP IMPORTS, 2014 – 18(Only the ones that can be manufactured in Uganda)- Unit: US Dollar

 

Product label

Annual Average Imports, 2014-18

1.

Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put ...

       259,580,000

2.

Palm oil and its fractions, whether or not refined (excluding chemically modified)

       230,209,000 

3.

Flat-rolled products of iron or non-alloy steel, of a width >= 600 mm, hot-rolled, not clad, ...

       122,902,000 

4.

Wheat and meslin

       143,548,000 

5.

Polymers of ethylene, in primary forms

         77,205,000 

6.

Cement, incl. cement clinkers, whether or not coloured

         88,252,000 

7.

Worn clothing and clothing accessories, blankets and travelling rugs, household linen and articles (mivumba)

         71,803,000 

8.

Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth ...

         64,128,000 

9.

Polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resins

         54,082,000 

10.

Rice

         67,293,000 

11.

Cane or beet sugar and chemically pure sucrose, in solid form

         82,016,000 

12.

Flat-rolled products of iron or non-alloy steel, of a width >= 600 mm, hot-rolled or cold-rolled ...

         58,540,000 

13.

Motorcycles, incl. mopeds, and cycles fitted with an auxiliary motor, with or without side-cars; ...

         54,876,000 

14.

Bars and rods of iron or non-alloy steel, hot-rolled, in irregularly wound coils

         38,715,000 

 

Footwear with outer soles and uppers of rubber or plastics (excluding waterproof footwear of ...

         37,345,000 

15.

Polymers of propylene or of other olefins, in primary forms

         39,354,000 

16.

Electrical transformers, static converters, e.g. rectifiers, and inductors; parts thereof

         31,205,000 

17.

Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes

         29,903,000 

18.

Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding ...

         24,318,000 

19.

Uncoated kraft paper and paperboard, in rolls of a width > 36 cm or in square or rectangular ...

         20,894,000 

20.

Articles for the conveyance or packaging of goods, of plastics; stoppers, lids, caps and other

         30,887,000 

21.

Sanitary towels (pads) and tampons, napkins and napkin liners for babies, and similar articles, ...

         24,677,000 

22.

Salts, incl. table salt and denatured salt, and pure sodium chloride, whether or not in aqueous

         26,763,000 

23.

Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, ...

         20,706,000 

24.

Preparations of a kind used in animal feeding

            9,740,000 

25.

Glazed ceramic flags and paving, hearth or wall tiles; glazed ceramic mosaic cubes and the ...

         19,881,000 

26.

Sodium hydroxide "caustic soda", potassium hydroxide "caustic potash"; peroxides of sodium.

         11,085,000 

27.

Woven fabrics containing predominantly, but 85% synthetic staple fibres by weight, mixed ...

         10,225,000 

  28.

Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches ...

            9,847,000 

Source: Ministry of Trade, Industry and Cooperatives

 

Ugandans, you can see how much money you are donating to the outsiders. You are “the donors”.  You are not only donating money but also jobs. People who make what we import are not our children but the children of others. By import substitution, we shall save money but also create jobs. We have already done this for cement, milk products, beers, sodas, etc. We can do it for many of the imports listed above. Therefore, Uganda is not poor but it is the orientation.

We earn US$ 500 million from coffee when the prices are good.  However, we immediately send all of it back to the foreigners to import products that can be made here, thereby also losing money and jobs.

 

I have not talked about government jobs which are 469,216 in total.  As you can see, these are very few compared to our population of 41 million people.  Those who get jobs should work diligently to create jobs for the others through the private sector.  Fortunately, the private sectors’ capacity to create jobs is limitless. The only limit is the spectrum of the natural resources of the country and the creativity of its human resource.

 

A country like Japan, with 127million people, without much natural resources, has been able to create 66.87million jobs. That is why some jobs are done by foreigners (nkuba kyeyos).

 

Therefore, countrymen and countrywomen (especially the Bazzukulu), the four sectors and the seven ways are the best way to create wealth and jobs.

 

The factories that are flooding into Uganda, show that Uganda can be easily developed once the basics are in place.  The basics we have put in place are: peace; policy friendly to the private sector; recently, enough electricity but not yet as cheap as we intend to make it; the ICT backbone that made the internet services and telephones cheaper; better tarmac roads across the country; and we are now working on the railways and water transport. It is these improvements that are not yet even completed that are causing this “acceleration” of growth even according to the World Bank. All this, however, is assisted and is, mainly, on account of our geographical location (in the centre of Africa), our good climate (not hot and not too cold), very good rains and very good soils. 

 

These are advantages that nobody else in the world has. However, because, again, on account of bad human settlement, these advantages are in danger.  You saw the deaths that occurred in Bududa ─ part of the mountain swallowing some of our people in the night (landslides).  You saw the people who died in Busoga recently because of eihuunga (windy rain with hailstorms). You have the current poor rains of Katuumba (the season of March to May). This is, mainly because of trying to be like the people of Babel.  It says, in the Book of GenesisChapter 11:1-9, as follows: “Now the whole world had one language and a common speech.  As people moved eastward, they found a plain in Shinarand settled there. They said to each other, “Come, let’s make bricks and bake them thoroughly.” They used brick instead of stone, and tar for mortar. Then they said, “Come, let us build ourselves a city, with a tower that reaches to the heavens, so that we may make a name for ourselves; otherwise we will be scattered over the face of the whole earth.” But the Lord came down to see the city and the tower the people were building. The Lord said, “If as one people speaking the same language they have begun to do this, then nothing they plan to do will be impossible for them. Come, let us go down and confuse their language so they will not understand each other.” So the Lord scattered them from there over all the earth, and they stopped building the city. That is why it was called Babel—because there the Lord confused the language of the whole world. From there the Lord scattered them over the face of the whole earth”.

 

It is, therefore, not correct or wise for people to try to be cleverer than God. If God said that this should be a wetland, you are not right to say that God made a mistake to make the area a wetland and it should, instead, become a garden or a town.  Those wetlands account for 40% of our rain.  The other 60% comes from the oceans (the Pacific and the Indian oceans).  Should we lose 40% of our rain? As far as the wetlands are concerned, the correct usage is to make fish-ponds at the edges of the swamps and allow the centre of the swamps to regenerate. Fish farming is much much more profitable than swamp rice or mayuni (yams). Then, the problem of invading the natural forests. These natural forests are part of the rain making factory of Africa. We need to discuss with our people who have invaded these vital areas as to how they can get out in a nice way, without using force.  The eihuunga (windy storms) destroying houses is because of forest cutting.  Trees are the ones that slow down the wind.  When you cut down the trees, then you remove the only wind breaker.  When the area is also flat like Eastern Uganda, between the Elgon and the Nile is, then you are waiting for disaster to occur.  All the families must, therefore, plant hedges as boundary trees for their farms but also as wind-breaks.  Agriculture can advise on the right species that will not take away the nutrients of the crops.  Trees like Albizzia, Senna semea, Caleandra, Tamarindus indicaare recommended because they are also nitrogen fixing.  Alternatively, one could look at fruit trees like mangoes, avocado, citrus, jack fruit.  The Emperor of Japan told me that 70% of their country is under forest.  Why?  He told me that without the forests, the ocean winds would blow the Japanese and their property off those islands.  Therefore, Japan imports food to the tune of US$40.7bn per annum and uses much of the island for forests.  Why?  That was the only way for them to survive on those islands.  We better get lessons from those examples.

 

It is not correct to continue with these mistakes. Otherwise, the future of Uganda is very bright. The average rate of growth in Africa is 2.3%. However, Uganda is growing at more than 6% ─ even with the residual bottlenecks.

 

Once the residual bottlenecks (the high cost of money in banks, high cost of electricity, lack of rail and water transport and corruption) are removed, Uganda will roar.

 

The Bazzukulu will say: “Yes, Jajja, we have heard of the four sectors and seven ways of getting out of poverty and creating jobs.  Where is the entandikwa?  How shall we start?

 

There are 5 (five) sources of entandikwa.  These are

Operation wealth Creation ─ 272.65billion per year;

Women Fund                    ─ 38.7billion per year;

Youth Fund                       ─ 65.6billion per year;    

Micro Finance               ─ 47.25billion per year;

Innovation Fund                  ─ 13billion per year.

 

These are funds which have been there all this time.  A total of 28,247 groups and 250,000 individuals have accessed support through these funds, giving a total of 350,000 individuals.

 

With the bigger players and innovators, there is the Government money through UDB.  The UDB gives loans for agriculture, manufacturing and tourism at the interest rates of 12%.  I am now, however, going to add another 3 funds to help in the wealth and jobs creation campaign.  One fund will be directly managed by my State House Comptroller, rolling out what we have already in Kampala with the Youth.  Using the 20 zones, I will create centres for import substitution and export promotion, taking full advantage of our vast spectrum of the human and natural resources base, so as to get back our jobs that were taken away by colonialism but do so in the modern context.  Before colonialism, we had: Abakomagyi (cloth makers); Abahazi (leather tanners); Abaremi (shoe-makers); Ababaizi (wood-workers); Abanogoozi-Ababumbi (ceramics-clay people making clay products of all types); Abaheesi (blacksmiths); Abatanagyi (bow and arrow makers); Abariimbi (Lake experts in making rafts – ebiba); Abaziingyi (making copper and iron bracelets, etc.); etc., etc.

 

All these jobs were taken away by colonialism. 

 

During the time of neo-colonialism ─ 1962 to 1986 ─ there was no stability or ideological orientation to address this robbery of jobs and wealth (money).  It is only after 1986 that a systematic effort started to make Uganda stand on its own feet.   As pointed out above, we are now self-sufficient in sugar for tea, beer, sodas, soap, some of the steel products, milk products, some types of cement, etc.  We are going to cover the whole spectrum.  Much of the investments for economic independence is done by our Indians, friends from China, etc. Some indigenous Ugandans have, however, also moved into manufacturing ─ Mzee Mulwana, Wavamuno, Basajjabalaba, Amos Nzeyi, Aga Sekalala, Kaddu Kiberu, James Kalibala, Maggie Kigozi, Lydia Mwesigwa, Robert Matsiko, etc.  The educated scientists of Uganda have also woken up.  Look at the Drs.: Muraanga, Kyamuhangyire, Isharaza, Mukwaya, Musaazi, Musasizi, Tokodri etc., etc.  These will be handled through the already mentioned Innovation Fund, under the Science and Technology Ministry.

 

The Nakyobe Fund will handle the not so highly educated youth or women in the 20 zones.  These will handle leather-tanning, shoe-making, food processing, knitting, food-processing, furniture making, etc., etc.

 

The 20 zones are:

 

  1.   Mengo (Mpigi, Mukono, Kayunga, Buikwe,

Wakiso, Luwero, Nakasongola, Butambala, Gomba);

 

  1.   Mubende (Mubende, Kiboga, Mityana,

  Kyenkwaanzi, Kassanda, Mityana);

 

  1.   Masaka (Masaka, Kalungu, Bukomansiimbi,

Ssembabule, Rakai, Kyotera, Lyantonde, Kalangala);

  1.   Busoga;
  2.   Bukedi;
  3.   Bugisu;
  4.   Sebei;
  5.   Teso;
  6.   Karamoja;
  7. Lango;
  8. Acholi;
  9. Madi;
  10. West Nile;
  11. Bunyoro;
  12. Kasese;
  13. Bundibugyo-Ntoroko;
  14. Ankole;
  15. Kigyezi;
  16. Tooro;
  17. Kampala.

There will be one centre, for each of these zones, for manufacturing by the Youth using Local raw-materials.  I see, for instance, some youth doing stone-cutting.  This is a very beneficial product.  We can use those cut stones to build houses but also to make pavements in our towns so that we chase dust and mud from our towns.  The road could be tarmacked but the walkways along the road side could be paved by stones cut by the youth.  The Ministry of Works to study this.  The stone streets that were in Rome when Jesus, St. Peter and St. Paul were on earth, are still there today.  They are made of stones.

 

The other Fund, I will set up is the Fund for emyooga.  This is a Runyankore word which means specialization (carpentry, blacksmithing, etc.).  While OWC is, mainly, for our targeted, nationally required products such as coffee, fruits, dairy products, I will set up a fund for the other miscellaneous activities (hair-dressing, restaurants, boda bodas, etc.).  In Kassanda district, our youth there identified 13 emyooga.  These were:

 

  1. Boda Boda Association;
  2. Women Entrepreneurs’ Association;
  3. Carpenters’ Association;
  4. Salon Operators’ Association;
  5. Taxi Operators’ Association;
  6. Restaurant Association;
  7. Welders’ Association;
  8. Market Vendors’ Association;
  9. Youth Leaders’ SACCO;
  10. PWDs’ Association;
  11. Produce Dealers’ Association;
  12. Mechanics’ Association;
  13. Tailors’ Association.

Each of these should form their own SACCO which should be joined by everybody in that mwooga in the district that chooses to do so.  Those who do not want to join, it will be their choice.  The Government can, then, contribute to each of these SACCOs.  These myooga – based SACCOs are better than the Katogo (mixed grill) SACCOs because they focus on one activity.  Secondly, everybody in the district in that mwooga, who feels inclined to, joins.  This eliminates the jealous of why those and not us.  Everybody will be included in his/her mwooga,if one chooses.

 

Finally, I will set up a Fund for all the elected leaders in a district – LCI committee members, councilors at the different levels, chairpersons and executive committee members, at all levels in every district.  This is because these elected leaders are persecuted from every side.  They get low or no pay from the Government.  They sacrifice their time to work for the society.  Yet, they are excluded from receiving other funds for the fear that they will monopolize the use of those funds if they are not excluded.  The answer, therefore, is to create a separate SACCO fund for elected leaders – past and present.  Once a leader, always a leader.

 

All this needs money from the Government.  Government money means tax – money.  Tax collection in 1987 was Shs. 5billion.  It is now, Ushs. 17,000billion, i.e. 340,000 % what it was in 1987.  When we budget, there are two pressures: pressure for consumption on (salaries, administration, foreign travel, new districts) on the one hand and the pressure for putting money in production (roads, electricity, the railway, the wealth funds, scientific research etc.).  In 2006, I put my foot down and insisted on provision of money for the roads and electricity.

 

Hence, the present budget is as follows:

 

SECTOR ALLOCATIONS

2018/19

%

2019/20

%

 Works and Transport 

4,786.6

19.1%

   6,406.8

20.0%

 Security

   2,068.0

8.2%

   3,606.0

11.3%

 Education 

   2,781.1

11.1%

   3,285.1

10.3%

 Interest Payments 

   2,514.1

10.0%

    3,091.2

9.6%

 Energy and Mineral   Development

   2,438.2

9.7%

   2,951.0

9.2%

 Health 

   2,310.1

9.2%

   2,529.6

7.9%

 Accountability 

   1,123.7

4.5%

   1,930.7

6.0%

 Justice/Law and Order

   1,296.1

5.2%

   1,636.2

5.1%

 Local Government Sector

      964.9

3.8%

   1,262.0

3.9%

 Water and Environment 

   1,265.8

5.0%

    1,042.7

3.3%

 Agriculture 

      892.9

3.6%

   1,011.4

3.2%

 Public Administration 

      624.1

2.5%

   908.9

2.8%

 Public Sector Management 

      612.8

2.4%

       789.0

2.5%

 Legislature 

     497.8

2.0%

      561.3

1.8%

 Social Development 

      214.7

0.9%

       218.5

0.7%

 Lands, Housing and Urban Dev't

     202.4

0.8%

       193.2

0.6%

 Trade and Industry 

      134.1

0.5%

      171.6

0.5%

 Science, Technology and Innovation 

     184.0

0.7%

     159.0

0.5%

 Tourism

        32.6

0.1%

      157.0

0.5%

 ICT & National Guidance 

       149.1

0.6%

    123.3

0.4%

 SUB TOTAL

25,093.23

100.0%

32,034.44

100.0%

 

 

 

 

 

 ** Memo Items

 

 

 

 

 External Debt Repayments (Amortization)

    894.05

 

    723.32

 

 Domestic Refinancing

 5,271.50

 

6,189.60

 

 Domestic Arrears

    380.50

 

     400.00

 

 Appropriation in Aid (AIA)

  1,063.54

 

     201.11

 

 GRAND TOTAL

  32,702.82

 

  39,548.47

 

 

Wages

4,244.43

 13.0%

Recurrent expenditure

7,595.38

 23.2%

Capital development

13,077.40

 40.0%

Debt (Interest and Domestic Debt Re-financing)

7,785.61

23.8%

Total

32,702.82

100%

 

You can see that wages are already taking Ushs. 4,244.43 billion.  Administration is taking Ushs 7,595.38 billion (Administration at central and local government including social services sector).  The NRM should be careful with this.  Salaries and administration expenditures serve only the 469,216 public servants.  If you assume that each public servant has got on average 6 people in his home, the total number of people benefiting from these expenditures is 2,815,296 million.  This is nothing compared to the 41million Ugandans. What should be resolved is the distortion of salary structures created by the 1995 constitution, allowing some groups to fix their own salaries.  Gradually and in a non-disruptive way, we should go back to one body fixing salaries for all of the public servants according to the needs of the country.

 

In the meantime, on account of putting my foot down in 2006 and emphasizing the roads and electricity, today we have got a tarmac road from Oraba on the Sudan border to Bunagana in Kisoro – a distance of 653 miles.  You have got a tarmac road from Malaba to Lamia, Busunga, in Bundibugyo – a distance of 368 miles.  The following roads have been tarmacked or are being tarmacked:

 

  1.       Kazo – Kamwengye;
  2.       Nyakahita – Kazo;
  3.       Gulu – Atiak;
  4.       Vurra – Arua – Koboko – Oraba;
  5.       Atiak – Nimule;
  6.       Mpigi – Kanoni;
  7.       Nakapiripirit – Moroto;
  8.       Gulu – Acholibur;
  9.       Acholibur – Musingo;
  10. Kanoni – Villa Maria – Sembabule;
  11. Olwiyo – Gulu;
  12. Mbarara – Kikagati;
  13. Fort-Portal – Bundibugyo;
  14. Kampala – Gayaza – Zirobwe;
  15. Soroti – Dokolo;
  16. Kabale – Kisoro – Bunagana;
  17. Hoima – Kaiso –Tonya;
  18. Ishaka – Kagamba;
  19. Ntungamo – Mirama Hills;
  20. Kashenyi – Mitooma;
  21. Rushere – Nshwerenkye;
  22. Musita – Lumino-Busia/Majanji;
  23. Kigumba – Bulima – Kabwoya –Kyenjojo;
  24. Mukono – Katosi – Nyenga;
  25. Soroti – Katakwi – Aksim – Moroto;
  26. Mubende – Kakumiro – Kagadi;
  27. Kapchorwa – Suam;
  28. Kampala – Entebbe Expressway;
  29. Kampala – Northern Bypass;
  30. Masaka – Bukakata;
  31. Rukungiri –Kihihi – Ishasha/Kanungu;
  32. Bumbo-Lwakhakha;
  33. Tirinyi – Pallisa/Kamonkoli-Kumi;
  34. Masindi-Park Junction and Tangi Junction

Buliisa Roads;

  1. Hoima-Butiaba-Wanseko;
  2. Buhimba-Nalweyo-Bulamagi/Igayaza;
  3. Kitaka-Gerenge; etc., etc.

Even the so called donor funded roads are, really, paid for by us because we co-fund and pay back the loan.  Electricity has reached all the district headquarters.  It says in the Book of Galatians Chapter 6:7that “whatever a man sows, that is what he will reap”.  The exact quotation goes as follows:7 Do not be deceived: God cannot be mocked. A man reaps what he sows.

 

By sowing the prioritization of development instead of consumption, we have harvested electricity everywhere (up to the district headquarters, at least) and good roads.  Therefore, all the countrymen, countrywomen and the Bazzukulu, need to know that what is crucial now is the correct prioritization of the budget to emphasize production before consumption and also ensure equitability when it comes to salaries in the Public service but in a measured and non-disruptive way given the distortions of the past.  We shall emphasize the wealth and infrastructure funds.

 

Only one additional information which should cheer-up all of us.  There is the Science of new agriculture where the soil is not needed at all.  It is, in fact, resented as a disease bearing medium.  This is the science of hydroponics where you only need water.  We are already aware of this Science.  It will help our People who are landless and even allow us to use our soil more for conservation rather than just basic production.  Therefore, in the end, what is most crucial is water.  Hence, the importance of protecting our water sources.

 

I thank you and wish you good luck.

 

 

Yoweri Kaguta Museveni

PRESIDENT AND THE CHAIRMAN NRM