h.es address to nrm mps at kyankwanzi retreat

8/3/2019 H.es Address to NRM MPs at Kyankwanzi Retreat

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SPEECH

BY

H.E. Yoweri Kaguta Museveni

President of the Republic of Uganda

On

Socio-economic transformation

to the NRM MPs Retreat

KYANKWANZI - 15th-22ndOctober, 2011


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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 togenerate 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


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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

immediate post independence political groups. They

lost badly and, unfortunately, they made all of us lose

lives, wealth, opportunities and development time. Therefore, the NRMs medicine for this is anti-

sectarianism, nationalism or patriotism whatever we

prefer to call it.


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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 socio-

economic transformation. Moving Uganda from under-

development to modernity. Turning Uganda into an

industrial country. Agriculture alone cannot give a

good quality of life to our people. It cannot alsoguarantee our future in terms of security and

independence. When Africa was colonized, we were an

agricultural continent with some artisan skills


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(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. In

the last 500 years, the European society has

undergone socio-economic transformation. 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,


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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 sweatminus what the aristocrats expropriated from them in

terms of rent for agricultural land use. In Europe, rent

from agricultural land has declined. The economic


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relations are now dominated by profits for enterprise-

owners 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. Service industries are now

predominant. 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 inAfrica. In order for socio-economic transformation to

take place, you need the following factors:


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peace and stability, at least in some parts of thecountry;

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 wellas health units; and

markets that are big enough to absorb ourproducts.

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


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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 Sub-

County, Nakaseke District, I sent Kale to the Bank of

Uganda to get me figures of imports and exports. I

was disappointed when I got those figures because

they were embarrassingly low for a country. 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. That is why the crisis was

not apparent. Otherwise, even at that time, the

economy was not all right. It was, indeed, an enclaveeconomysmall islands of prosperity surrounded by a

sea of backwardness.


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As soon as we got into Government, we started

creating the factors outlined below:

disciplining the Army and Security forces to createstability;

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:


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Uganda (in millions of dollars)

Years 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

Export of Goods 134.7 134.4 175.7 213.6 206.4 205.8 209.5 208.8 220.9 261.6

Exports of Services 15.9 21.0 25.6 31.4 32.6

Imports of Goods 82.6 99.4 113.0 140.1 148.0 162.8 160.4 161.2 173.3 178.2

Imports of Services 12.6 -4.3 1.4 -10.2 13.2 33.6 61.3 59.1 64.5 75.1

Workers Remittances

Foreign DirectInvestment

1.3 1.5 0.9 3.3 4.2

Donor Loans 0.2

Donor Grants 4.0 2.9 4.2 2.5 1.5

Selected Exports

Values ($ millions)

Coffee

Cotton

Tea

Tobacco

Maize

VOLUMES

Coffee(Millions of 60 kgbags)

Cotton(000 of Tons)

Tea(000 of Tons)

Tobacco(000 of Tons)

Maize(000 of Tons)

Years 1971 1972 1973 1974 1975 1976 1977 1978 1979

Export of Goods 243.9 263.8 275.1 294.0 237.2 323.6 547.8 323.0 397.2

Exports of Services 37.1 25.3 11.2 9.4 10.6 9.4 4.9 8.5 14.9

Imports of Goods 247.7 171.9 175.5 236.3 228.4 206.8 366.6 306.3 265.7

Imports of Services 91.8 78.2 52.2 74.0 84.3 78.2 104.5 152.5 108.4Workers Remittances


-1.2 -11.9 5.2 1.7 2.1 1.2 0.8 1.0 1.6

Donor Loans 0.5 0.6 0.4 0.4 0.2

Donor Grants 2.6 3.1 2.6 3.8 16.0 7.7 2.0 5.9 29.1

Selected Exports

Values ($ millions)

Coffee


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CottonTea

Tobacco

Maize

VOLUMES

Coffee(Millions of 60kg bags)

Cotton(000 of Tons)

Tea(000 of Tons)

Tobacco(000 of Tons)

Maize(000 of Tons)

Years 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

Export of Goods 319.4 229 347 368 408 379 407 334 266 278

Exports of Services 9.9 44 - - 17 23 12 - - -

Imports of Goods 317.6 284 338 428 342 264 438 598 658 740

Imports of Services 123.4 100 160 150 82 130 131 218 235 237

Workers Remittances

Foreign Direct Investment - - - - - 5

Donor Loans 83 119 98 123 186 191 401 169 313

Donor Grants 38.1 100 56 76 66 47 7.7 96 187 177

Selected Exports

Values ($ millions)Coffee 419.574

Cotton 0.000

Tea 0.000

Tobacco

Maize

VOLUMES

Coffee(Millions of 60 kgbags)

Cotton(000 of Tons)

Tea(000 of Tons)

Tobacco(000 of Tons)Maize(000 of Tons)

Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Export of Goods 178 174 151 197 434 560 639 593 510 586 441

Exports of Services - 21 35 94 64 104 145 161 177 192 208


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Imports of Goods 618 475 513 597 881 927 987 886 999 931 914Imports of Services 195 242 248 293 436 563 675 388 442 428 416

Workers Remittances 54 11 63 211 159 165 170 186


1 3 55 88 121 121 142 133 140 181

Donor Loans 293 187 253 409 268 234 225 272 216 207 206

Donor Grants 257 314 336 260 319 400 336 421 573 472 559

Selected Exports

Values ($ millions)

Coffee 310.4 295.0 274.3 125.4

Cotton 29.3 7.5 11.7 22.1

Tea 30.5 28.2 22.4 41.0

Tobacco 12.8 17.7 14.7 24.9Maize 11.6 9.3 4.7 22.3

VOLUMES

Coffee(Millions of 60kg bags)

1.1 2.0 1.9 3.3 2.8 4.6 3.5 3.3 3.8 2.5

Cotton(000 of Tons) 0.7 1.1 1.6 0.7 1.1 1.6 0.7 1.1 16.9

Tea(000 of Tons) 2.7 6.3 10.3 2.7 6.3 10.3 2.7 6.3 25.4

Tobacco(000 of Tons) 0.8 2.2 3.9 0.8 2.2 3.9 0.8 2.2 12.2

Maize(000 of Tons) 21.8 21.2 96.1 21.8 21.2 96.1 21.8 21.2 10.4

Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Export of Goods 467 478 572 759 1016 1188 1776 2208 2327 2164

Exports of Services 217 225 262 373 525 526 593 799 967 1314

Imports of Goods 975 1038 1203 1427 1746 2216 2958 4043 3787 4264

Imports of Services 479 495 379 490 609 770 977 1257 1423 1837

Workers Remittances 349 423 299 311 322 411 452 724 778 915

Foreign Direct Investment 151 185 202 295 380 644 792 729 816 848

Donor Loans 354 131 191 206 215 143 453 267 438 373

Donor Grants 483 494 607 678 604 616 391 379 403 502

Selected Exports

Values ($ millions)

Coffee 97.6 96.6 91.1 123.1 171.7 190.3 266.6 398.1 280.2 327.6

Cotton 14.7 18.1 19.8 44.8 38.2 11.9 22.5 17.5 19.6 46.4

Tea 30.4 25.8 36.3 35.5 34.0 30.4 47.6 47.3 58.6 73.1

Tobacco 31.2 36,2 38.4 40.3 31.2 27.6 65.3 72.7 61.7 90.3

Maize 10.9 11.6 13.0 16.0 19.6 24.2 24.0 18.1 26.5 3.4

VOLUMES

Coffee(Millions of 60 kg 3.1 3.4 2.4 2.6 2.4 2.2 2.7 3.3 3.0 2.8


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Source: Bank of Uganda

The following table shows the amount of taxes collected from1986 to-date:

Revenue collection & tax to GDP ratios: 1986/7 to 2005/06 and 2008/09 projections (Shs. billion)

Period 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991

Net URAcollections(ShsBillions)* 0.52 0.93 1.60 2.84 5.01 18.32 44.60 89.57 133.79 18Tax revenueas a Percentof GDP** 10.08% 11.38% 9.24% 6.85% 4.23% 4.91% 5.18% 6.77% 7.61% 6.8

Period 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02

Net URA

collections(ShsBillions)* 282.60 373.35 506.99 611.70 728.35 797.43 935.56 978.00 1,075.15 1,212.4Taxrevenue asa Percentof GDP** 7.58% 8.80% 9.73% 10.23% 11.21% 10.51% 11.42% 11.91% 10.44% 11.12%

Period 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Net URAcollections

(ShsBillions)* 1,409.25 1,642.06 1923.519 2,231.05 2,625.74 3,161.70 3,662.32 4,205.69 5,114.20Taxrevenue asa Percentof GDP** 11.33% 11.75% 12.00% 12.28% 12.39% 12.91% 12.17% 12.16% 13.18%

Source: URA

bags)Cotton(000 of Tons) 13.9 22.6 18.1 30.9 40.3 9.9 17.9 9.5 20.1 12.3

Tea(000 of Tons) 30.2 29.5 34.1 35.4 36.6 27.1 44.1 46.0 48.3 54.6

Tobacco(000 of Tons) 14.5 20.2 25.5 29.7 24.5 17.3 24.7 30.6 32.9 39.1

Maize(000 of Tons) 60.2 72.9 58.2 83.4 93.3 110.3 105.1 71.7 98.1 151.4


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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 1961 1962 1963 1964 1965 1966 1967 1968 1969Wheatproduction(metric tons) 0 0 0 0 885 1,329 5,000 5,000 7,920

Bananas AreaHarvested(Ha) 50,000 50,000 50,000 50,000 50,000 52,100 69,900 88,900 82,000

BananasProductionQty (mtonnes) 722,414 744,756 767,790 791,536 816,017 841,254 1,019,702 1,546,000 1,612,550

Cassava AreaHarvested

(Ha) 317,000 264,000 286,000 240,000 359,000 217,000 253,000 227,000 300,000

CassavaProductionQty (tonnes) 1,120,000 1,055,000 1,140,000 985,000 1,300,000 900,000 1,063,000 930,000 1,400,000

Cattle (Head) 3,618,000 3,382,762 3,464,603 3,463,937 3,496,797 3,496,797 3,626,643 3,682,325 3,971,000

Cocoa AreaHarvested(Ha) 900 1,000 1,000 1,100 1,100 1,200 1,400 2,000 2,100

CocoaProductionQty (tonnes) 20 25 25 30 30 32 46 86 147

Coffee AreaHarvested(Ha) 245,100 254,500 255,300 261,100 293,300 335,300 336,000 252,400 281,200

Coffee

ProductionQty (tonnes) 94,100 119,000 158,200 172,400 152,100 153,900 166,400 133,000 247,200

Maize Area

Harvested(Ha) 178,464 170,896 159,606 193,000 284,000 306,000 275,000 275,000 350,000

Maize

Production

Qty (tonnes) 196,000 190,000 200,000 220,000 270,000 273,000 230,000 341,884 446,011Tea AreaHarvested

(Ha) 5,500 5,700 6,300 7,150 7,300 8,000 8,000 10,000 10,000

TeaProduction

Qty (tonnes) 5,100 6,319 6,170 7,615 8,366 11,215 11,242 15,163 17,627

Wheat AreaHarvested(Ha) 0 0 0 0 0 324 486 3,000 3,000


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WheatProduction

Qty (tonnes) 0 0 0 0 0 885 1,329 5,000 5,000

Sugar CaneArea

Harvested(Ha) 16,800 17,000 17,400 19,000 19,300 20,800 23,100 27,100 31,600

Sugar CaneProduction

Qty (tonnes) 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


Commodity 1970 1971 1972 1973 1974 1975 1976 1977 1978Wheatproduction(metric

tons) 7,000 6,900 6,900 8,000 14,000 12,000 13,000 13,900 5,000

BananasAreaHarvested

(Ha) 142,500 108,400 124,900 100,000 100,000 100,000 100,000 100,000 100,000

BananasProduction

Qty (tonnes) 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

CassavaArea

Harvested(Ha) 539,000 508,000 375,000 483,000 485,000 618,200 512,200 540,300 528,600

Cassava

ProductionQty (tonnes) 2,578,000 2,417,000 2,650,400 2,131,900 2,349,900 2,992,100 2,837,800 2,993,400 2,028,400

Cattle(Head) 4,280,500 4,223,900 4,472,600 4,628,700 4,773,300 4,867,900 4,989,500 4,911,100 5,245,600

Cocoa AreaHarvested(Ha) 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

CocoaProductionQty (tonnes) 241 145 190 200 100 100 200 100 200

Coffee Area

Harvested(Ha) 245,700 257,100 256,500 280,000 222,400 223,200 223,922 223,807 223,000

Coffee


Maize Area

Harvested(Ha) 300,000 280,000 415,000 314,000 388,000 475,400 526,470 429,298 450,000

MaizeProduction

Qty (tonnes) 388,000 421,000 500,000 419,000 430,000 570,000 674,000 566,000 594,000


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Tea AreaHarvested

(Ha) 10,300 15,000 14,600 16,400 16,300 17,500 18,000 16,800 18,300

TeaProduction

Qty (tonnes) 18,200 18,000 23,400 22,000 22,000 18,400 15,400 15,200 10,900

Wheat AreaHarvested(Ha) 4,000 4,000 3,000 3,000 4,000 6,000 4,975 6,293 6,600

WheatProductionQty (tonnes) 7,920 7,000 6,900 6,900 8,000 14,000 12,000 13,000 13,900

Sugar CaneAreaHarvested

(Ha) 31,800 29,100 29,000 27,000 28,000 24,333 29,493 33,200 31,300Sugar CaneProductionQty (tonnes) 1,750,000 1,720,000 1,550,000 1,223,200 720,000 464,760 563,316 634,120 430,000


Commodity 1979 1980 1981 1982 1983 1984 1985 1986 1987Wheatproduction(metrictons) 17,000 8,000 10,000 12,000 7,000 8,000 8,333 10,000 13,000


(Ha) 102,000 102,000 102,000 102,000 102,000 102,000 104,000 105,000 106,000

BananasProductionQty (tonnes) 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

CassavaAreaHarvested(Ha) 303,000 302,000 310,000 331,000 372,000 401,000 299,769 361,724 345,000

CassavaProduction

Qty (tonnes) 1,294,000 2,072,000 3,034,000 3,127,000 3,239,000 2,969,000 2,699,565 2,900,000 3,101,000

Cattle(Head) 5,242,200 4,770,600 4,745,400 4,821,100 4,871,300 4,993,100 3,952,000 4,149,600 4,357,080

Cocoa Area

Harvested(Ha) 2,000 2,000 2,000 2,000 2,000 2,000 2,000 1,500 1,800

Cocoa

ProductionQty (tonnes) 200 100 100 100 200 271 186 69 100

Coffee AreaHarvested

(Ha) 224,000 224,000 224,000 224,000 224,000 224,000 224,500 224,700 224,700


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CoffeeProduction

Qty (tonnes) 103,000 135,200 97,500 161,866 148,224 145,971 143,995 159,881 167,067

Maize AreaHarvested

(Ha) 272,000 258,000 260,000 285,000 295,000 347,000 288,614 321,953 307,000

MaizeProductionQty (tonnes) 453,000 286,000 342,000 393,000 413,000 338,000 354,000 322,000 357,000

Tea AreaHarvested(Ha) 4,000 3,000 4,000 5,000 6,000 8,000 9,000 7,000 7,200

TeaProductionQty (tonnes) 1,800 1,500 1,700 2,580 3,054 5,214 5,758 3,335 3,511


WheatProductionQty (tonnes) 5,000 17,000 8,000 10,000 12,000 7,000 8,000 8,333 10,000

Sugar Cane

AreaHarvested(Ha) 37,500 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000

Sugar CaneProductionQty (tonnes) 350,000 340,000 360,000 380,000 380,000 380,000 380,000 380,000 380,000


Commodity 1988 1989 1990 1991 1992 1993 1994 1995 1996Wheat

production(metrictons) 10,761 4,000 9,000 8,800 9,000 9,000 9,000 9,000 9,000


(Ha) 109,000 111,000 118,000 123,000 120,000 118,000 120,000 120,000 130,000

BananasProductionQty (tonnes) 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

CassavaAreaHarvested

(Ha) 361,000 392,096 412,000 389,000 362,000 369,000 320,000 332,000 335,000

CassavaProduction

Qty (tonnes) 3,271,000 3,568,376 3,420,000 3,229,000 2,896,000 3,139,000 2,080,000 2,224,000 2,245,000

Cattle(Head) 4,574,934 4,803,681 6,836,335 7,702,605 8,042,768 8,183,392 8,444,392 8,048,702 8,254,001

Cocoa AreaHarvested 2,500 5,000 10,000 10,500 10,500 10,500 10,500 11,000 12,500


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(Ha)Cocoa

ProductionQty (tonnes) 224 461 1,000 1,200 1,200 1,500 1,700 2,000 2,500


(Ha) 224,700 237,600 270,000 270,000 260,000 265,000 263,000 263,000 280,000

CoffeeProduction

Qty (tonnes) 151,157 169,042 128,747 147,366 110,334 144,551 198,371 181,465 287,925

Maize AreaHarvested

(Ha) 345,000 430,064 401,000 420,000 438,000 503,000 563,000 571,000 584,000

Maize

ProductionQty (tonnes) 440,000 623,585 602,000 567,000 823,887 979,337 1,261,616 1,338,179 1,445,301

Tea AreaHarvested(Ha) 7,200 8,000 11,000 14,500 15,500 16,000 16,000 16,000 18,000

TeaProductionQty (tonnes) 3,512 4,658 6,704 8,877 9,504 12,102 13,462 12,692 17,418


Wheat


Sugar Cane

AreaHarvested(Ha) 31,000 25,000 25,000 22,000 18,000 16,000 14,000 15,000 18,000

Sugar CaneProductionQty (tonnes) 400,000 510,000 610,000 845,000 960,000 950,000 950,000 1,150,000 1,450,000


Commodity 1997 1998 1999 2000 2001 2002 2003 2004 Wheatproduction(metrictons) 9,000 11,000 12,000 14,000 14,000 15,000 15,000 15,000


(Ha) 130,000 130,000 130,000 135,000 135,000 135,000 135,000 135,000 1

BananasProductionQty (M

tonnes)

9,303,000 9,318,000 8,949,000 9,428,000 9,732,000 9,888,000 9,700,000 9,686,000 9,38

CassavaArea 342,000 356,000 375,000 401,000 390,000 398,000 405,000 407,000 3


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Harvested(Ha)

CassavaProductionQty (tonnes) 2,291,000 3,204,000 4,875,000 4,966,000 5,265,000 5,373,000 5,450,000 5,500,000 5,

Cattle(Head) 8,362,669 8,621,258 8,933,777 9,209,189 9,445,322 9,736,663 10,037,258 10,349,644 10,

Cocoa Area

Harvested(Ha) 12,767 12,800 13,098 13,717 14,200 14,200 14,200 14,200

Cocoa

ProductionQty (tonnes) 2,700 2,800 3,500 3,950 3,950 3,500 3,800 4,500


(Ha) 272,000 265,000 275,000 300,991 264,000 217,504 264,000 264,000 CoffeeProduction

Qty (tonnes) 219,624 205,056 251,881 143,475 197,410 209,547 150,871 170,081

Maize AreaHarvested(Ha) 598,000 616,000 608,000 629,000 652,000 676,000 710,000 750,000

MaizeProductionQty (tonnes) 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,

Tea AreaHarvested

(Ha) 20,500 20,000 15,213 15,701 15,761 22,000 20,000 20,000

Tea


Wheat AreaHarvested(Ha) 5,000 5,000 6,000 7,000 8,000 8,000 9,000 9,000

Wheat


Sugar Cane

AreaHarvested(Ha) 19,500 14,000 20,000 20,000 19,705 25,000 17,043 23,357

Sugar Cane

ProductionQty (tonnes) 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,


Commodity 2006 2007 2008 2009 2010

Wheat production (metric tons) 19,000 19,000 20,000

Bananas Area Harvested (Ha) 135,000

Bananas Production Qty (M tonnes) 9,052,000 9,233,000 9,371,000 9,512,000 9,664,000


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Cassava Area Harvested (Ha) 379,000 371,000

Cassava Production Qty (tonnes) 4,926,000 4,456,000

Cattle (Head) 10,758,999 11,091,751 11,434,795

Cocoa Area Harvested (Ha) 21,100 30,300

Cocoa Production Qty (tonnes) 7,400 10,600

Coffee Area Harvested (Ha) 220,000 265,000

Coffee Production Qty (tonnes) 133,110 175,346 218,781 195,871 167,952

Maize Area Harvested (Ha) 819,000 844,000 862,000 887,000

Maize Production Qty (tonnes) 2,177,357 2,354,444 2,361,954 2,432,813 2,505,797

Tea Area Harvested (Ha) 19,100 20,000

Tea Production Qty (tonnes) 34,334 44,923 45,680 48,663 49,182

Wheat Area Harvested (Ha) 10,000 11,000

Wheat Production Qty (tonnes) 18,000 19,000

Sugar Cane Area Harvested (Ha) 19,500 20,000

Sugar Cane Production Qty (tonnes) 1,950,000 2,000,000

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

Other selected items

Production Qty 1950 1951 1952 1953 1954 1955 1956 1957Cotton(mts) 301 157 309 331 363 378 392 277

Tobacco( mts) 325 323 315 294 108

Fish(mts) 23,400 23,800 24,620 34,365 44,950 50,531

Beer 439* 782* 1201* 1365*

Cement(mts) 16,913 40,989 49,234 58,957 85,434

Production Qty 1958 1959 1960 1961 1962 1963 1964 1965

Cotton(mts) 359 397 389 344 342 230 147 113

Tobacco( mts) 1609 1792 1966 1887 3018 2952

Fish(mts) 52,000 54,700 61,600 60,188 63,500 68,500 71,600 76,349

Beer 1726* 1097* 1148* 11,410 12,233 12,288 14,129 18,666

Cement(mts) 104,447 80,332 71,056 64,884 55,042 54,282 71,524 128,742

Production Qty 1966 1967 1968 1969 1970 1971 1972 1973

Cotton(mts) 63 94 35 28 18 23 46 55

Tobacco( mts) 2531 3811 4360 3932 3060 3330 3978 3978


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Fish(mts) 85,190 99,616 108,400 125,300 139,075 162,317 164,080Beer 21,666 22,025 20,266 27,767 34,962 37,945 45,591

Steel(mts) 19,521 16,432 11,065 14,295

Cement(mts) 120,514 139,507 154,853 172,946 191,072 205,110 166,084 142,675

Soap(mts) 12,925 13,619 6,331

Cor.Iron shts(mts) 11,914 14,341 12,860 5,139

Production Qty 1973 1974 1975 1976 1977 1978 1979 1980

Cotton(mts) 55 73 23 14 9 14 18 41

Tobacco( mts) 3978 986 2001 1800 1800 1710 990 810

Fish(mts)

Beer 45,591 43,488

Steel(mts) 14,295 11,513

Cement(mts) 142,675 153,035

Soap(mts) 6,331 5,068

Cor.Iron shts(mts) 5,139 3,964

Production Qty 1981 1982 1983 1984 1985 1986 1987 1988

Cotton(mts) 32 51 18 37 45 80 50 70

Tobacco( mts) 720 647 1650 1969 1613 949 1214 2639Fish(mts) 149.7 214.3

Production Qty 1989 1990 1991 1992 1993 1994 1995 1996

Cotton(mts) 100 85 90 95 125 200 90 95

Tobacco( mts) 3456 3322 3600 4680 5183 6548 6851 6349

Fish(mts) 213.5 245.2 254.9 264.9 276 213.2 217.4 222

Beer 19,529 18,718 23,882 30,822 51,238 64,158

Soft Drinks(lts) 25,982 21,768 26,899 41,001 56,537 70,222

Cement(mts) 26,920 27,138 37,881 51,996 45,227 88,767 175,046

Cut flowers(mts) 133 380

Leather (sqm) 41,000 40,000 20,000 15,000 2,000 101,000

Cor.Iron shts(mts) 2,296 5,782 14,331 25,134 31,782 29,883

Production Qty 1997 1998 1999 2000 2001 2002 2003 2004

Cotton(mts) 60 100 60 125 150


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Tobacco( mts) 8195 11333 20864 22837 22572 22572 22572 22572Fish(mts) 219.3 217.1 230 227 227 247 434.8

Beer 89,638 110,469 117,845 10,087 107,914

Soft Drinks(lts) 65,364 68,699 80,836 72,623 81,680

Cement(mts) 289,560 321,329 347,274 367,470 431,084 506,000 558,000 360,000

Cut flowers (mts) 537 1,522 1,523

Leather (sqm) 26,000 88,000

Cor.Iron shts(mts) 29,710 28,418 39,414 34,690 58,054

Production Qty 2005 2006 2007 2008 2009 2010 2011

Cotton(mts)

Tobacco( mts)

Fish(mts) 416.8 367.2 374.3 364.8 366.6 381.9

Cement(mts) 650,000 857,609 995,807 1,193,361

1,162,241

1,347,327

Production Qty 1958 1959 1960 1961 1962 1963 1964 1965

Cotton(mts) 359 397 389 344 342 230 147 113

Tobacco( mts) 1609 1792 1966 1887 3018 2952

Fish(mts) 52,000 54,700 61,600 60,188 63,500 68,500 71,600 76,349

Beer 1726* 1097* 1148* 11,410 12,233 12,288 14,129 18,666

Cement(mts) 104,447 80,332 71,056 64,884 55,042 54,282 71,524 128,742

Source: Cooperatives DeptNote:* 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 Ozor gm

Copper (tons) Cobalt(Tons)

Coltan (Tons) Iron ore (Tons)

1950 585.5 Ty Oz Nil Nil 5.09 Nil1951 224 Ty Oz Nil 19.161952 166 Ty Oz Nil Nil 4.06 Nil1953 511 Ty Oz Nil Nil 3 Nil1954 568.04 Ty Oz Nil Nil 3.77 Nil1955 449.71 Ty Oz Nil Nil 0.67 Nil1956 293.11 Ty Oz 175,719 Nil 4.38 Nil1957 7,388 Ty Oz 434,831 Nil 0.68 Nil1958 7,753 Ty Oz 473,485 - No Data

availableNo Dataavailable

1959 9,145 Ty Oz 638,066 - No Data No Data


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available available1960 8,645 Ty Oz 814,885 - No Dataavailable

No Dataavailable

1961 12,299 Ty Oz 834,689 - No Dataavailable

No Dataavailable


No Dataavailable


No Dataavailable


No Dataavailable

1965 50.10 Ty Oz 943,119 - No Dataavailable

No Dataavailable

1966 2.75 Ty Oz 943,048 - No Data

available

21.933

1967 48 gm 872,723 Nil 27 23,9391968 Nil 926,769 Nil 8.8 Nil1969 97 gm 984,824 Nil 1.9 235.11970 93 gm 1,004,752 7.6 2.7 2411971 67 gm 948,354 3.8 4.1 4951972 No Data available 907,593 - No Data


1973 No Data available 821,305 - No Dataavailable

No Dataavailable


No Dataavailable


No Dataavailable

1976 No Data available 396,485 - No Dataavailable No Dataavailable1977 No Data available 157,022 - No Data



-

1979 No Data available 23,583 - - -1980 No Data available Nil - - -1981 No Data available 12,031 - - -1982 No Data available 1,818 - - -1983 No Data available No production - - -1984 No Data available No production - - -1985 No Data available No production - - -1986 No Data available No production - - -

1987 No Data available No production - - -1988 No Data available No production - - -1989 No Data available No production - - -1990 No Data available No production - - -1991 No Data available No production - - -1992 No Data available No production - - -1993 No Data available No production - - -1994 No Data available No production - - -1995 No production No production - - -1996 No production No production - - -


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1997 No production No production - - -1998 No production No production - - -1999 4.73 Kg No production 77 Nil 61.282000 55.98 Kg No production 420 2,712.0 2,400.882001 0.142 Kg No production 634 2.2 1,097.292002 2.565 Kg No production 459 6.463 Nil2003 40 Kg No production 16.24 16.240 Nil2004 1.447 Tons No production 457 0.376 Nil2005 46 Kg No production 638 0.273 208.5302006 21.919 Kg No production 688 0.103 Nil2007 25.43 Kg No production 697 0.10 365.992008 1.86 Kg No production 664 Nil 1,739.902009 Nil No production 673 0.05 971.952010 Nil No production 624 0.01 3,794.74

2011(July) 383Source: Ministry of Energy

In the case of increased gold production, this is when Busitema MiningCie, 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 AnnumYear 1950 1951 1952 1953 1954 1955 1956 1957

Total 8.1 8.3 8.6 8.8 9.1 9.4 9.7 10

Year 1958 1959 1960 1961 1962 1963 1964 1965

Total 10.3 10.7 10.9 11.3 11.7 12.3 12.9 13.6

Year 1966 1967 1968 1969 1970 1971 1972 1973

Total 14.4 15.1 15.9 16.7 17.6 18.5 19.5 16.4

Year 1974 1975 1976 1977 1978 1979 1980 1981

Total 6.2 5.1 4.2 2.3 0.764 0.451 420 420

Year 1982 1983 1984 1985 1986 1987 1988 1989

Total 430 435 420 400 395.4 410 420 430

Year 1990 1991 1992 1993 1994 1995 1996 1997


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Total 480.8 550 570 580 575 551.2 590 600

Year 1998 1999 2000 2001 2002 2003 2004

Total 615 758 829 900 983 1,067 1,150

Year 2005 2006 2007 2008 2009 2010 2011

Total 1,233 1,400 1,450 1,500 1,500 1,540 1,663

Source: DDA figs.

In terms of enterprises (industrial, agricultural orservices) 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.


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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 CompanyJamal 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 theconstraints of certain bottlenecks. The most

prominent bottlenecks are two: electricity and

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


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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


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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. I have nothing but excitement

when I watch the progress of Kampala-Masaka,

Kampala-Mityana, Kampala-Kafu, Lira-Kamdini,

Mbarara-Katunguru, Bugiri-Tororo, Tororo-Soroti

roads, etc. These are not just tarmac roads beingreconstructed; they are tarmac roads being

reconstructed with our own money!! Mine is the

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


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the first time (kutambuukaor 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

building our infrastructure will be accelerated. Our

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 startedexploiting 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


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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: What will

bring more prosperity to people agriculture orindustry and services? In my speech on the NRM

Vision, I pointed out that industrial products bring in

more money because they are produced by people who


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have more skills such as engineers, technicians,

scientists and other skilled people. Agricultural

products, on the other hand, can be produced even by

people who have no skills. 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 thelabour expended to produce it. According to this theory, themore labour or labour time that goes into an object, themore it is worth. Marx defined value as "consumed labourtime", and stated that "all goods, considered economically,are only the product of labour and cost nothing exceptlabour".

In other words, the more labour hours you spend in

making an item, the more expensive it is. Industrialproducts require more labour time.


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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

nutrients from your soil (phosphorus, potassium, etc),

for very little returns. I always give the example of

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 groundcoffee. 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.


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Today, the global value of the coffee business is US$

148 billion. However, the coffee-producing countries

only get US$ 42 billions!! This has just gone up

recently. It used to be only US$ 5 billion. This is

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 orfinancial) and entrepreneurship (the skills to identify

opportunities and utilize them to make profits and

satisfy human needs). This is where capitalism


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differed from Marxism. You remember Marxism only

talked of labour as the basis of value. An investor

(entrepreneur), therefore, accounts for 50% of the four

factors of production: 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 ofOmuyindi (the Indian) in a hostile manner. Yet these

Indians are the greatest friends of Ugandas

development and of our people. They produce sugar,


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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$


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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


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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 tookover 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,


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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 aresult 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.


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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 of Bujagaali hydro powerstation;

ii) Privatization of Uganda Airlines;iii) Expansion of Lugazi Sugar production;iv) Amuru sugar factory;v) Leasing Uganda Airlines to South African

Airlines;

vi) Leasing the Dairy Corporation to the Thaiinvestor;

vii) Kalagala hydropower project;viii) Karuma power project etc.


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The following projects succeeded on account of my

insistence:

i) Bujagali hydro power projectii) Garden City shopping mall;iii) Aya hotel in Nakasero;iv) 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


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(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%;

industry18.2%; services80.4% (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%;

industry24.3%; services68.4% (2010 est). On the

other hand, backward countries have the following

labour force distribution: Uganda, agriculture,

Forestry and Fishing65.6%, services and industry 34.4%. Kenya, agriculture 75%, industry and

services 25%. Nigeria, agriculture70%, industry and

services 30%. Etc. With respect to Ugandas GDP


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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

increasing population, the land cannot accommodate

an indefinite number of people in agriculture. Yet

industries and services can accommodate a large

number as long as the products they make or services

they provide have got consumers. Hence, the

importance of markets to absorb what we produce.

When I see anybody delaying or sabotaging a

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


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backward country to preserve the environment. The

problem of Africa is not lack of forests. The problem of

Africa is lack of factories. 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 (casseasiamese), burmeseteak, etc., aswell as the indigenous trees such as mahogany (khaya

anthortica, khaya grandiflolar, khaya senegelensis),

omusizi (mysopsis eminii), omusisa, omugavu (albezia


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coraria), etc. I have also preserved the indigenous trees

of Rwakitura and Kisozi such as: Omukoma (grewia

mollis), emiko (erythrina abyssinica), emitongore,

emityaaza (acaciaspecies). 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. The good pastures are:

emburara (hyperrannia rufa), ejubwe (bracharia

brizantha), obuterante (panicum maxima and minima),

orunyankokoore (chrolis guyana), oruchwamba

(cynodondactylon), ekibingo (napier grass,Pennisetum

purpureum), etc. I also hear, of Kikuyu grass

(Pennisetum clandestinum) and guatamala grass(Euchlaenaluxurians) although I have never seen these

species.


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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

factories and modernization. It is this continued

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 ofmy 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


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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) is part of

environmental conservation. It is not. With

industrialization, electrification of the whole country

and the attraction of hotels as well as other service

companies, it will be easier to conserve ourenvironment. I am the one that rescued Mabira from

encroachers in 1986. We should not only protect

Mabira but we should expand it. However, the


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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. What we need is

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

because we, the producers in agriculture, are there.

We just need reinforcement by other partners. The

following are the measures we need to take to make

our economy grow rapidly:

1.Legislate against riots so that tourists andinvestors increase their flow into the country.


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2.Add value to most of our coffee exports throughroasting 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 maizeflour as well as manufacture animal feeds for the

animal industry such as cattle, poultry, etc.

4.Attract fruit factories to Kayunga, Luwero, Sorotiand 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 theSouth-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 tocapable investors to produce textiles out of our

cotton which is now being exported as lint; this


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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 dairyproducts sector by aiming at having six (6) zerograzing 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. The milk sector has the

potential to export products worth US$ 175.6

million per annum.


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8.Beef and leather is another sector where there is abig 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. If we do not attract enough

abattoirs, then, the Government should build

additional ones. We must also have enough

leather tanning industries and shoe

manufacturing industries. If the private sector is

not available, then, Uganda DevelopmentCorporation (UDC) should invest in shoe

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 wheat is sold in Kenya because the road from

Kapchorwa to Bukwo is impassable. We should

tarmack that road. I gave these people some

combine harvesters. The problem now is theroad. Sebei, parts of Ibanda and Buhweju can

grow wheat and save us from importing it. We

squander US$ 130.3 millionon importing wheat.

10. Some people in Sheema started growingmulberry trees for feeding silk-worms and

producing silk. When I became aware of this, I

introduced it to Kashongyi sub county in

Kiruhuura. This project can be expanded to some

other areas. I am told that the global demand forsilk products is of the magnitude of US$ 2.6

billion.


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11. There is the goldmine of banana products.Dr. Muranga is assisting me to process bananas

into flour and starch. Once this project is

complete, it will earn us about US$ 20 million per

annum. 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. We have been funding these

projects.

12. We have also been funding, with the approvalof Parliament, medicinal products e.g. oluwoko

(phytolaca-dodecandra) for killing snails that

cause bilharzia, larvicide and other possible

medical products. These are products with

potential for multi billions of dollars.

13. Wood products are also another potentialsource of local and foreign money. There is a


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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 thatcan earn us more money. There is the mineral

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 earndollars 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 inKabaale and Sukuru hills in Tororo. There are

companies that are already, working with

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 ofArua, Pakwach, Kitgum East, Kitgum West,


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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 Ugandaneeds 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


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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). I have

already instructed the Ministry of Energy to start

preparing for this through training. The only

African countries with considerable hydro-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

being bandied around that Congo can supply

electricity for the whole of Africa. This is

probably assuming that Africa will remain

backward with only 10% of the population using

electricity and with no industries. The

population of Africa is now one billion people.

The population of the USA is about 320 million

people. The USA is consuming, as already

pointed out, about 1.5 million mgws. The

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 alwaystalk 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

wind in Uganda apart from Karamoja? People

have talked of the bio-mass energy producing

bio-gas. This should also be examined.

Electricity from oil and gas cannot be indefinite

because these are exhaustible resources.

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 hishouse 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 agro-

based industries, tourism-based and mineral-

based industries important as they are. There

are also products of light engineering, pioneered

by the much vilified Mahendra Mehta in

partnership with the Government in UGMA.

That UGMA facility can literally fabricate

anything: it can cast sugar-rollers and grove

them, it can fabricate machine parts, etc. The

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 headedby 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 machine-

tools. 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 notdevelop 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, taxeswill 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

petroleum unit in the Ministry of Energy. It is

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 nothave the money to do the drilling and it was not

necessary. Oil and gas are not as important to

the economy as agriculture, industry and


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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

GDP of US$ 1.46 trillion (2010 est.). Since we

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 isthe services of our professionals such as the

teachers. Our brothers and sisters in Southern

Sudan have just got their freedom away from the


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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 recovery, some infrastructure

modernization, discovery of oil and gas, expanding

tax collection, expanding education, improving

health, promoting agricultural and industrial

research, contributing to the building of regional

markets as well as negotiating for market-access to

the international markets, improving peopleshousing, 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


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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 thepseudo environmentalists. As already stated

above, I can firmly and unequivocally tell you

that it is not possible to preserve the

environment in the context of backwardness.

The biggest threats to the environment in the

world are three: emission of greenhouse gases bythe greedy industrialized countries of, especially,

Europe and USA that increase carbon dioxide

(CO2) in the atmosphere and, therefore, trap heat


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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. What is the answer to these two

problems? The NRM Vision not the NGOvision; not the Egyptian vision under Field

Marshal Mubarak. Each year, in Uganda, the

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

destruction, we need 25,000 mgws of electricity,

just to stop the use of firewood. We need

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. We also, of course,

need to create jobs in order for the population to

afford electricity.

In conclusion, the situation in Uganda would be

excellent if it was not for the paralysis created by


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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.

h.es address to nrm mps at kyankwanzi retreat

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