“Budget 2016: Not bold enough to definitively avert a downgrade” – Bokamoso by Mmusi Maimane

“DA leader Mmusi Maimane discusses the 2016 budget speech, and the implications for our economy with a possible ratings downgrade looming” (Democratic Alliance, 2016).

The History of Dr Kizza Besigye’s Residence Kasangati (Youtube-Clip)

“Kasangati is a lucrative area, 60km north of Kampala. The area came to lime light with the migration of the opposition leader Kizza Besigye to the area” (NBS TV Uganda, 04.03.2016)

A look into the Maize-shortage in Malawi; As the Government reaction seems slow and reactionary; instead of well prepared; while the hiking of the price and running out at ADMARC storage sounds suspect; Malawian Gov. has questions to answer to their people!

Maize Malawi

This here will be about something simple as Maize, but not any maize as this is staple food. Malawi has had a rocky road when it comes to politics. This here about the agricultural economic structure that is fundamental for socio-economic stability, in an economy where the currency is losing value quickly. The sentiment and the government don’t seem honest in their approach and the opposition is addressing it, but not listen to. That is not something that is a new situation as governments tries to distance themselves from the opposition, but at this point it is a about something key to society as food security to its citizens.

What I don’t seem to understand how the President Mutharika can talk about having a decent economy to buy needed maize, while the economy is stagnating, and the Admarc cannot have given honest numbers of storage as the depleting. While the reports of selling stocks unlawfully and getting the maize prices higher and steady inflation on the price, while at one point promising to buy in Maize due to lack of stock, while the Zambian Authorities saying they have stopped exporting. Then even later telling the people that they are buying from Tanzania instead; that shows that the Government might have used the days between the “Zambian” import to facilitate the Tanzanian buying, while that is direct lying to the public about the general action from the government. The second is saying the government having the money while the funding from it comes from United Kingdom and U.S. to buy the maize. The U.S. gives through the United Nations World Food Program in the country, while the UK gave it more directly to the Malawian government. But before I go to deep, read and see if you get any clarity!

Peter Mutharika-2

Background on the Maize shortage:

The President on the 3rd February:

“Malawi President Peter Mutharika on Wednesday failed to clear the mist over the availability of the maize in the country following reports that the country’s sole grain marketer, Agricultural Development and Marketing Corporation (Admarc) is running short supply” (…)”My repeated assurance to you that no one shall die of hunger. Based on the assessed requirements of maize and quantities of maize that we have bought, there should have been enough maize in Admarc depots to cater for everyone’s needs” (…)”Admarc, meanwhile, will continue to replenish the maize stocks. In addition, we have additional money to buy more maize if needed” added Mutharika” (Nkawihe, 2016).

Same day release of the economic situation in Malawi:

“Since May 2012, upon devaluation, the Kwacha has lost value by 338 percent from MK169 against US Dollar as currently the local currency is trading at around MK720 against US Dollar” (…)”In a press statement released over the weekend signed by RBM Governor Charles Chuka which is also available to The Maravi Post, the central bank is optimistic of getting the Kwacha back despite its continue slippage against international foreign exchange” (…)”“Malawians would recall, the exchange rate misalignment was so serious that the country had very limited foreign exchange reserves and accumulated huge external payments arrears (estimated to be in excess of US$600 million) held by both Government and the private sector. This created persistent and wide spread shortages of fuel and other critical imports. Indeed, the exchange rate misalignment diverted foreign exchange transactions to the parallel or black market. Prior to the devaluation the official exchange rate was K169/US$ compared to over K250/US$ in the parallel market” (…)“Kwacha depreciation is hurting low-income earners and is creating undue uncertainty in the business community. It is however misleading to portray a collapse of the economy. Despite the debilitating exogenous shocks, the Kwacha has performed relatively better than in other countries when they also floated their currencies in the 1980’s and 1990’s. Malawi continues to pay for its international obligations and foreign exchange reserves have never been better, especially taking in to account the loss of donor direct budget support. Fiscal and monetary policy coordination has been strong despite daunting fiscal pressures”, concludes the central bank statement” (Mb’Wana, 2016).

Chakwera

Days later the opposition question on slashing of the budget:

“The 2015/16 approved budget was initially pegged at K929.7 billion, but is now down to K906 billion with recurrent budget reduced by just over K17.1 billion and the development budget slashed by K5.6 billion” (…)”Leader of Opposition and Malawi Congress Party (MCP) president Lazarus Chakwera reacting to the revised budget, told Nyasa Times that his party is eagerly waiting to hear from the government why instead of increasing the budget to buy maize for people who are suffering with hunger and medicine from public hospitals they have resorted to cutting the budget at this critical time” (…)”Apart from food crisis, shortage of medicine in public hospitals, Jooma said the budget was expected to rise due to the fall of kwacha as the approved budget of K929.7 billion was done when the kwacha was at K450 to one dollar and currently it is selling at 700 which means in actual sense the budget is all below what was needed and to cut it further it will continue squeeze poor Malawians” (Nkhoma, 2016).

The President on day the after:

“In a national on the Malawi Broadcasting Corporation (MBC) television on Thursday, President Mutharika said it had come to his government’s attention that some officers in ADMARC depots are conniving with vendors to buy and sell maize that has been subsidized” (…)”He also appealed to the police to investigate the matter thoroughly and bring to book those who will be guilty of such a malpractice” (APA, 2016).

CSO on the Maize shortage:

“Currently, Government has blamed vendors for the sloppy management at ADMARC which is assuring in a way that Government wants accountability. However, should venders really be part of the blame equation? Isn’t it ADMARC itself that opened its doors at the said odd hours to sell the maize? The Mpherembe ADMARC Depot alleged assault case reported in the Nation Newspaper of Tuesday, 16 February 2016 page 8, perfectly reveals the purported rot in ADMARC” (…)”Sourcing of maize from neighboring countries is very important because it will cut on transportation costs. As such, Governmnet must be applauded for this. However, it is also important to highlight that these neighboring countries are equally affected by el nino but yet have surplus to sell to Malawi” (Mkandawire, 2016).

malawi10bx

What Malawi Revenue Authority said to the public on the 11th February 2016:

“Its LEGAL to import maize flour into Malawi BUT it is ILLEGAL to smuggle the commodity. Get an import permit for free from the Ministry of Industry and Trade. You may not even pay duty if you have a COMESA Certificate” (Malawi Revenue Authority, 11.02.2016).

On the 20th February – this happen:

“Government spokesman and Minister of Information, Jappie Mhango claimed there is 60,000 metric tonnes of maize in her grain reserves, enough to feed the nation.” (..)”The delegates booed President Peter Mutharika’s chief adviser on economic affairs Collins Magalasi throughout his contribution as he tried to defend the food situation and authenticate statistics on available maize which he said was enough to feed starving Malawians” (…)“In total we have 50 500 metric tonnes [MT] of maize which has not been released to the people… People have decided to mislead themselves and this is about the maize that we are talking about, this maize is more than what we need,” said Magalasi” (…)”In  his presentation titled ‘Importance of agriculture to development’,  Cisanet’s National Coordinator,  Tamani Nkhono-Mvula  said: “It’s a pity that government is telling us that it has 60 000 metric tonnes of maize in grain reserves but an inside source has informed me that there is only 2000 metric tonnes” (Chilunga, 2016).

Zambia Maize

On the 25th February – Question on the import from Zambia:

“Member of Parliament for Rumphi East who is also opposition People’s Party (PP) third Vice President Kamlepo Kalua has written a letter requesting Malawi President Peter Mutharika to come to Parliament to clarify government claims to have procured maize for Malawians” (…)”He says Zambia has banned exportation of maize to Malawi and Zambia’s Agriculture minister has confirmed the ban” (Auzeni, 2016).

On the 29th Februar – Opposition rally discussing the matter:

“A joint rally in Lilongwe by opposition parties, the Malawi Congress Party (MCP), Peoples Party and the Alliance for Democracy (Aford) has openly dressed down Malawi President, Peter Mutharika as an ‘irresponsible leader’ who they claim does not care about the country” (…)”Chakwera said: ” We do have issues that show responsibility. Look at the hunger and the economic crisis. It’s a mockery to Malawians that despite scarcity of maize in Admarc depots, persistent power back out , water problems , shortage of medicine in public hospitals, rising prices of good, economic hardship Malawians are facing , Mutharika can boldly stand and say he has no problems” (…) ”We are all feeling the hunger together with the Malawians. Its unfortunate that he (Mutharika) does not see and know theres hunger in the country” said Chihana” (…)”The sentiments were made during the rally at Kalambo School Ground which the parties labeled as a solidarity on Sunday, as led by MCP leader, Lazarous Chakwera PP acting Vice Presdent, Kamlepo Kalua and Aford President Enoch Chihana” (Malawi Times, 29.02.2016).

Malawi Maze shortage ques at Storage depot

On the 29th February the first trucks arriving:

“Finance Minister Goodall Gondwe In Parliament: “Treasury has empowered ADMARC to procure another large consignment of 50,000 metric tons of maize from Tanzania. As we see it, we have and will have enough maize in stock that will be more than enough to satisfy ADMARC markets in the coming days” (…) “On the hunger situation, Gondwe says government has everything under control. “Just yesterday some 44 large trucks full of maize crossed our borders into Malawi” (Malawi Voice, 2016).

“About 70 trucks importing maize that government has bought through Admarc have spent more than two weeks at Mwami border in Zambia waiting for clearance from authorities. However, forty-four trucks carrying 500 metric tons arrived in the country on Friday” (…)”Admarc Chief Executive Officer, Foster Mulumbe, assured the nation that the process of  importing all the 30,000 metric tonnes of maize would take two weeks.“This was actually planned, well in advance by government. When you look at the tonnage that is coming, it’s 30,000 metric tonnes. That’s not the tonnage we need currently. We have actually started stockpiling for the coming season. If we are talking about what parliament is saying, they have made their assertion barely 12 hours ago we wouldn’t have been able go through the whole process and have the maize start arriving in Malawi now,” Mulumbe said” (McDonald, 2016).

On the 3rd March – Statement by CAMA:

“In a statement signed by its Executive Director John Kapito, Cama said government does not need to spend forex on importation of maize when there is already enough maize in the country” (…)“Cama is shocked that the Malawi government is importing maize at a time when we all know that there is a lot of maize in the country which is being held by private traders in various warehouses throughout the country” (…) “What is more annoying is that the private traders are hoarding the maize and demanding higher prices that range from K300 to K350 per kilogramme when they purchased such maize from poor Malawians at K60 per kilogramme. And we are aware that the private traders are intending to export the maize to satisfy their greed at a time when Malawians are dying of hunger,” Kapito said” (…)”Government announced that it would purchase 30,000 metric tonnes of maize from Zambia to avert the current food crisis”(Chitsulo, 2016).

29.02.2016 Newspaper Malawi

On the 3rd March – Statement from President Mutharika:

“I publicly appealed to our Development Partners to help us with additional food and other resources so that we can supplement our own local maize supplies to fight the pending hunger. The aim was to ensure that we should cover everyone who would need food support. I want to thank those friends who came forward and helped us, such as the WFP and others” (…)”Most sadly, I have been told that there is critical shortage of maize at many ADMARC depots. I am further informed that some ADMARC officials are conniving together with some criminal maize vendors, who buy ADMARC maize at night and sell it to poor Malawians elsewhere at very exorbitant prices. In some places poor Malawians are forced to buy this maize at Fifteen Thousand kwacha per 50kg bag, because they cannot find maize at ADMARC. Consequently some of them are now starving” (…)”I also want to appeal to all decent Malawians to examine their moral conscience and reflect deeply. I have repeatedly talked about patriotism, hard work and integrity. Because of hard work and careful planning, my government bought this maize through ADMARC at much higher costs for you to buy only at Five Thousand Five Hundred Kwacha (MK5,500) per 50kg. In effect, these thieves are therefore stealing this maize from you” (Mana Online – Malawi News Agency, 03.03.2016).

Reports today on 4.3.2016:

Production:

“Talks are in progress between the treasury and two major agro-processing companies to seal an agreement for maize production in Malawi” (Capital FM Malawi, 04.03.2016).

Import:

“While commending government for suspending import license requirements on importation of maize flour, traders in the industry are still calling on government to introduce a duty waiver on the commodity” (The Daily Times Malawi, 04.03.2016).

Admarc logo

Here is the continuation on the matter:

One Voice:

“Bill Mayaya, one of the organisers of the peaceful march said it a Republican Constitutional right for all the Malawians, regardless of their standing in society to have access to food. “We want to show the government that we are not satisfied with their explanations. People will continue dying of hunger and hunger related diseases” he said” (Khamula, 2016).

Second Voice:

“Bishop for Karonga Diocese of the Catholic Church Martin Mtumbuka has said the church is disappointed and concerned with the way many Malawians are suffering because they do not have food and has since called on government which claims to have maize to make it available to the people” (…) “I think that government of Malawi pays people who have solutions to that. So, I do not want to be doing their job by suggesting what they should be doing. All I would like to stress is we were told there is maize, let the maize be made available to the people. And we would also want to say may be the best way is also to stop blaming each other. I don’t want to enter into blame game but the key issue is that people should have the maize,” he said” (Mmana, 2016).

Third Voice:

“The Consumer Association of Malawi (Cama) has asked government to order private traders to release maize to the public and break the vicious cycle of hoarding the grain for anticipated inflated prices” (…)”Kapito claimed in a statement made available to Nyasa Times on Tuesday that private traders are hoarding the maize and demanding higher prices that range from K300 to K350 per kilogram, when they purchased such maize from poor Malawians at K60 per kilogram” (…)”Government must order all traders that are hoarding the maize to release it onto the market immediately. Government must recommend the selling price for such maize, knowing fully that it had recommended the buying price of maize from the farmers after harvest” says the statement (…)”The survey was carried out on January 30. 2016. “Most Agro Traders have the commodity but are not willing sale to Admarc or Government due to the fluctuation and instability of the local currency” reads the report in part” (…)”In terms of tonnage – as of January 30 – Pride Produce had 9,000 tonnes; Export Trading 89,000 tonnes, K U Distributors 70,000 tonnes while Trans-Globe had 40,000 tonnes of Maize” (Simutowe, 2016).

fertiliser-subsidy-reforms-and-maize-in-malawi-4-638

How the Government can afford to import maize:

The United States yesterday gave Malawi $27 million (K20 billion) in response to the food shortage that has affected about 2.8 million Malawians. The development brings America’s total contribution to humanitarian response to $ 55 million (about K41 billion) which represents about 44 percent of the K 92.7 billion the country needed to provide monthly food or cash ration to startling population between October last year and April 2016” (Mkandawire, 2016).

How the Government can afford to import maize Part II:

“The UK’s Department for International Development announced today that it is stepping up its humanitarian support to the southern African country, which with today’s announcement will total £14.5m since October 2015” (…)”International development minister Nick Hurd said providing support is not only “hugely important to African people” but also in the UK’s national interest” (…)”The announcement came as the World Food Programme appealed for $38m as the situation in Malawi worsens and the UN agency’s funds wane” (Rumney, 2016).

Zambian export of maize too Malawi saga:

“ZAMBIA suspended maize exports to Zimbabwe and Malawi last week to help build reserves in light of a looming El Nino-induced drought, local grain importers confirmed last Friday” (…)”The suspension has affected Zimbabwe and Malawi local grain importers who are now battling to import in about 150 000 tonnes of maize”(Afriem, 2016).

“Malawi has procured an additional 10,000 metric tonnes of maize grain from neighbouring Zambia that will be distributed to various Agriculture Development and Marketing Corporation (ADMARC) depots in the country to feed people up to April.Agriculture, Irrigation and Water Development Minister Allan Chiyembekeza told journalists in the capital Lilongwe on Tuesday” (APA, 2016).

admarck Llongwe

Afterthought:

As you see with certainty and certainly more to this story than what has been released and happen behind closed doors; I wonder also about how the storage components got empty and that the Admarc can’t control the amount of maize. That is what is worrying and the authorities can’t have a open trade with investors and companies who keeps maize already in storage, as the 30th January reports showed. The issue is that the Government of Malawi has told certain things and Government of Zambia told another, therefore ended up importing from Tanzania and not Zambia, as the time went by and still did not discuss the trade between the companies storing the local produced maize. That was bugs me as seeing the pictures of ques to Admarc storages to get little maize to themselves.

The questioning of the response from the Government and the ability to fulfil the necessary food security in the country; that is justified to ask as the President Mutharika defends and claim that Admarc stealing maize flour and selling it. That might be true to some extent, but still they could not take the whole amount of tonnes over night without any questions. Then if so, wouldn’t the government get reports and receipts, or some paperwork. That explains why the deliverance and due diligence on the work the government outfit has done. So if they stole the whole thing and was baffled thieving. Then the Government should arrest certain king-pens in the system and address the loss to get back the earned silver-coins by the thieves. Since that is not happening and the trades of the maize is rising, the prices spiking while the farmers getting less of a price from the government buying scheme. This shows some industry insiders earning on the spiked prices and getting extra cash for the same product as before the issue of struggling storage of maize flour in the country.

But the government claims at one point to have the cash be able to buy more if needed. While they really need donor funding to do so and get the UK and U.S. to drop their tax money and sending maize to Malawi. While the economy looks bleak by what the already reports is showing. This here is showing some arrogance from the government when they now the numbers and the reports of the storage. As the where are arrogant while they had to know the Zambian governments actions on their behalf. That is so hoping that people who are in a dire situation and hope that nobody is questioning it. Well, I hope they do and also get the government to answer for this as they have been left short by the shortage of the maize and the dwindling economy. Two aspects that is well fitted together and shows certain mismanagement from central government down to the citizens; and it is the citizens that pays the huge price and also the higher price of the maize flour as a cost of the actions that has happen recently. Peace.

Reference:

Afriem – ‘ZAMBIA SUSPENDS MAIZE EXPORTS TO ZIM AND MALAWI, NO MAIZE SOLD TO MALAWI’ (16.02.2016) link: http://www.afriem.org/2016/02/zambia-suspends-maize-exports-to-zim-and-malawi-no-maize-sold-to-malawi/

APA – ‘Subsidized maize not for sale, Mutharika warns Malawi dealers’ (04.02.2016) link: http://en.starafrica.com/news/subsidized-maize-not-for-sale-mutharika-warns-malawi-dealers.html

APA – ‘Malawi procures additional maize from Zambia’ (17.02.2016) link: http://en.starafrica.com/news/malawi-procures-additional-maize-from-zambia.html

Auzeni, PA Anzanu – ‘KAMLEPO PENS MUTHARIKA TO APPEAR BEFORE PARLIAMENT’ (25.02.2016) link: http://www.faceofmalawi.com/2016/02/kamlepo-pens-mutharika-to-appear-before-parliament/

Chilunga, Zawadi – ‘DPP ‘IN DENIAL’ SAYS KABWILA: MAGALASI BOOED AT ‘FUTURE OF MALAWI’ PAC CONFERENCE’ (20.02.2016) link: http://www.nyasatimes.com/2016/02/20/dpp-in-denial-says-kabwila-magalasi-booed-at-future-of-malawi-pac-conference/

Chitsulo, Moses – ‘Cama wants government to act on maize traders’ (03.03.2016) link: http://www.times.mw/cama-wants-government-to-act-on-maize-traders/

Khamula, Owen – ‘Malawi Protests over food shortage, economic woes March 10’ (02.03.2016) link: http://www.nyasatimes.com/2016/03/02/malawi-protests-over-food-shortage-economic-woes-march-10/comment-page-1/

Malawi Voice – ‘Treasury Empowers Admarc To Procure 50,000 Metric Tons Of Maize From Tanzania’ (26.02.2016) link: http://malawivoice.com/treasury-empowers-admarc-to-procure-50000-metric-tons-of-maize-from-tanzania/

Mb’Wana, Lloyd – ‘RESERVE BANK ASSURES MALAWI’S KWACHA STABILIZATION AMID PRICES OF GOODS AND SERVICES SOURING’ (03.02.2016) link: http://www.maravipost.com/business/economy/10387-reserve-bank-assures-malawi%E2%80%99s-kwacha-stabilization-amid-prices-of-goods-and-services-souring.html

McDonald Thom – ‘44 maize trucks arrive in Malawi’ (29.02.2016) link: http://www.times.mw/44-maize-trucks-arrive-in-malawi/

Mkandawire, Lucky – ‘US Give Malawi K20bn to buy maize’ (01.03.2016) link: http://mwnation.com/us-gives-malawi-k20bn-to-buy-maize/

Mkandawire, MacBain – ‘Maize shortage and the prevailing economic situation’ (19.02.2016) link: http://www.congoma.mw/2016/02/19/maize-shortage-and-the-prevailing-economic-situation/

Mmana, Deogratias – ‘GIVE MALAWIANS MAIZE—BISHOP MTUMBUKA’ (02.03.2016) link: http://www.times.mw/give-malawians-maize-bishop-mtumbuka/

Nkawihe, Maurice – ‘Mutharika admits Malawi citizens starving: Fails to clear air on maize security’ (04.02.2016) link: http://www.nyasatimes.com/2016/02/04/mutharika-admits-malawi-citizens-starving-fails-to-clear-air-on-maize-scarcity/

Nkhoma, Mphatso – ‘MALAWI OPPOSITION SCEPTICAL WITH REVISED BUDGET’ (27.02.2016) link: http://www.nyasatimes.com/2016/02/27/malawi-opposition-sceptical-with-revised-budget/

Rumney, Emma – ‘DFID increases food aid to Malawi’ (17.02.2016) link: http://www.publicfinanceinternational.org/news/2016/02/dfid-increases-food-aid-malawi

Simutowe, Yamikani – ‘Kapito says private traders should release maize: Asks Malawi government to issue order’ (02.03.2016) link: http://www.nyasatimes.com/2016/03/02/kapito-says-private-traders-should-release-maize-asks-malawi-government-to-issue-order/

NRM organized a sham demonstration; Doing it by facilitating the newly formed Youth Action Against Imperialism (YAAI) to create hostility towards the international community; as an reaction to the questions from the Missions concerning the recent elections.

Action Youth Initiative - NRM 03.02.2016

Yesterday there was a group demonstrating in front of the European Union Embassy and the U.S. Mission in Kampala as a reaction to the involvement in the elections. As the NRM-Regime has already told the Foreign Missions during Pre-Election time to not be involved in local politics.

Malik Kiberu was the leader of the Youth Action Against Imperialism (YAAI) Kiberu is a law student at UCU in Mukono under a State House sponsorship. President Museveni has himself pledged 53bn to the group so they could do their work. Another key member of the group is Burora Anderson who is their Chairman.

They are after the ordeal in front of the embassies taken to Kabalagala Police Station. Though the notion is that they could speak their peace and let go, as they are a part of the ruling party and there not seen as criminals; as they have done this on NRM payroll and proves to what extent NRM-Regime goes to make mockery of intelligent people. Yet another proof of how they pay unemployed youth to stage a demonstration and storm embassies in the capital. It is just a sad sight. An you know there something strange behind it all when only Bukedde writes about it and express the matter. The Bukedde is part of the State Media and the Vision group. So that makes it even more suspect with the reports of how they are funded and the timing of the demonstration.

NBS 03032016

NBS wrote this yesterday:

“Group of 10 “anti-imperialism” youths arrested after they attempted to storm the US embassy. The group stormed US embassy demanding that America ceases to interfere in Uganda‘s affairs or else govt should expel all Americans” (NBS TV Uganda, 03.03.2016).

The US Embassy answered this to question about the “Attack” from a worried person on Facebook:

U.S. Kampala Embassy 03.03.2016

The whole story is suspect and sounds all to me like a fraud. I still press it though as the NRM-Regime have done lot’s of suspect things before and bend the laws to their advantage when they can. That they would create a fake organization to put pressure on the foreign mission would not be surprising thinking about that the U.S. Mission and EU Mission has asked to get the results and follow up on the announcement after the elections. That must hurt the NRM and President Museveni that they don’t automatically acknowledge and congratulate him. Peace.

If you had forgotten Ofowo Oponod wish during the Pre-Election Period: 

EU Out of Politics Pre-Election Period

(the Internet does not forget). 

Press Statement from MEMD: Government of Uganda receive seven bids for the First Licensing Round (01.03.2016)

Oil  Press Statement 01.03. P1Oil  Press Statement 01.03. P2

#AddisTaxiStrike 2016: Taxi-Drivers today strikes for similar reasons as in 1998! Ethiopian Gov. Acts like business as usual.

Addis Taxi Strike 2016

Here is quick look into the new Taxi-Strike in Addis Ababa; that is escalating today into more towns in Ethiopia. That is interesting as the country has massive history. When it comes to strikes and had a giant demonstration that has toppled governments in the past. This might just be about a law, but this law comes from Federal Transport Authority. Seems like the Taxi Drivers is not interested in a new regulations and that opens the possibility of taking their licenses away.

I will bring some historic Taxi Strikes from Addis Ababa. The ones I will mention is the one in 1998 seemed to be for the same reasons actually. The other I will mention is in 1974 we’re because of the high oil-prices and also directly against the government. From the strikes of the past there are certainly things we can learn from and at the same time; see the similarities between 2016 and 1998. Just take a brief look.

The Taxi Strike of 1974:

“The second conjuncture was the steep rise in oil prices following OPEC embargo of 1973, which hit the Ethiopian economy hard. The inevitable result was galloping inflation that left a large hole in the pockets of urban wage-earners. Taxi drivers came out on strike over pump prices in February 1974 and teachers followed suit” (Nugent, 2012).”The Taxi drivers were going to go on strike as of 18 February, of Teachers’ Association decided to join them and bring the country’s educational system to a standstill on the same day” (…)”The Students, who since the late 1960s, had deliberately abandoned pursuing corporatist interests in favor of advocating a fundamental change through class boycotts, demonstrations and the distribution of anti-government leaflets, found in the taxi drivers and teachers long sought-after allies and, on 18 February, poured out onto the streets of Addis Ababa chanting revolutionary slogans and agitating resistance against the government” (Andargachew, 2009).

Lesser known Taxi Strike in 1998:

“Addis Ababa — Taxi drivers in Addis Ababa went on strike on Wednesday, July 8, 1998 in protest against new traffic regulations put into operation by the Transport and Communications Bureau of the Addis Ababa Administration as of the same date” (…)”The regulations identify several categories of traffic offences, matching them with their respective fines. The offences and their respective penalties are as follows (“Addis Zemen”, Sene 27, 1990 E.C.)”(AllAfrica.com, 1998).

More on the strike in 1998:
“Stiff new traffic safety regulations introduced: Stringent new traffic regulations have been introduced in Addis Ababa to stem a rising trend of traffic accidents in the city. According to officials, Addis Ababa currently suffers the highest rate of traffic accidents in the world with a total of 9,714 incidents recorded in the past 12 months with 300 deaths, 2,340 injuries, and a loss of property worth 11.6 million birr (approx. U.S. $1.7 million). The death toll represented a 17 per cent increase from the previous year. Announcing the move on July 3, the Transport and Communications Bureau announced the regulations put traffic offences into six categories entailing penalties raging from 40 to 140 birr, with the most serious resulting in court proceedings and the disqualification of drivers. Taxi owners, who described the new rules as “punitive rather than preventive”, held a one day strike on July 8 to protest the regulations. (The monitor, July 4-5)” (UNDP, 1998).

Taxi Strike Addis 2016 P1

This Year’s Strike:

On the 29th February different parts of the City the strike started. Quickly reached all part of the city and the taxis was not to be seen. The Areas with no taxi services was verified early at Saris, Megenegna, Kassanchis, Abnet, Shiro,Meda and Jemmo. The reports early were also that workers and students from the Southern parts of Addis Ababa could not get to town. The Addis Standard told earlier in the day that buses took people from Asko, Plassa, Arat Killo and Mercato R areas. Government tried to get people to take buses as the taxis was already striking. People were stranded at Sandafa, Laga Tafo and Burayu. There was even some taxis trying to avoid being a apart of the strike, instead they ended with violent reactions as they countered the solidarity between the drivers. The strike also led to the ordinary commuters to and owners of cars taking them to gas stations and long ques at the gas stations. After some hours even Bajaj drivers joined the taxi drivers in their strike in Holota. Special Eyewitness statement during the day was one: “Taxi strike Addis and Oromia Special Zone are in a mess situation as there was strikes by public transport providers. All taxes, minibus, higers and lonchins were in strike. In response this serious transportation problem there was conflict between police and public at Burayu (Keta district) around 8.00 am”.

On the 30th February the strike continued in Addis Ababa and there were no signs of them in the streets. The government had by this time deployed 380 public buses to get people moving in the city. There outcome is longer ques and traffic jams than normally.

ETV Taxi Strike 01.03.2016

During the 1st March while still the strike was going on. On the ETV the newscaster had the balls to call the taxi-strikers was calling them “terrorist”. Surely the walking is going to his head as he need to walk it seems.

On the 2nd March the strike continues and at some taxi stations around towns there are more donkey carts than ever and still no taxis. As the Taxi Drivers really means business when it comes to this law and matter!

Government Should Cancel the new traffic regulation – Taxi Drivers: 

Another news report after an hour after the start of the strike said this:

“As we have reported an hour ago, #addistaxistrike has continued. They are protesting a new Ethiopian law that has ignored them” (…)”BREAKING: Taxis in Addis Ababa go on strike against a new driving rule” (SiTube, 29.02.2016).

Background:

“Following the announcement of a new decree to execute Regulation Number 208/2010 that the Federal Transport Authority is said to implement on drivers, taxi drivers in the city of Addis Ababa have called for and started a strike that will last for two days. As the news of strike started circulating, Transport Authority announced its plan to postpone the implementation of the decree for three months to ‘create awareness’ in advance” (…)”Fana Broadcasting Corporate, on its news feed, has interviewed people from the Associations of Taxi Owners where they claimed the strike was called without their consent and urged the drivers to end their strike and start serving the public immediately” (Zone 9, 29.02.2016).

“Taxis stopped operating on Monday morning, leaving the Addis Ababa city short of taxis. Long queues were observed throughout the city as passengers lined up for taxis this morning” (…)”Meanwhile, the Federal Transport Authority said it is putting on hold of the traffic bill for three months. The Authority will “postpone consideration of the bill until there is wider agreement on a solution,” it said in a written statement to the state owned radio” (Fantahun, 29.02.2016).

Addis Taxi Strike 2016. Gas Quejpg

The Law that the Taxi Drivers strike about:

“Taxi drivers in Addis Abeba and its surroundings are striking as of this morning against a new traffic regulation which started to be implemented as of Monday 22 February” (…)”In 2009 the Addis Abeba City Council favorably voted to ratify the new traffic regulation, Road Transport and Traffic Control Regulation. Following the 2009 ratification of the amended regulation, the Addis Abeba Transport Bureau (AATB) claims to have had discussions with taxi and city mid-bus owners’ associations as well as the society at large before reaching at the recent decision to implement to regulation, seen by many as too strict and unpractical” (…)”The Regulation stipulates a six month suspension of driving licenses and additional driving lessons for drivers who lost 14 -16 points due to previous offenses. A driver who has 17 -19 points deducted from his/her records will get his/her driving license suspended for a year; and any driver who gets 20 and above points deducted will have his/her driving license permanently revoked and can only re-apply for a fresh driving lessons after a gap of two years” (…)”AATB estimates that Addis Abeba is home to close to more than 4, 000 white minibuses, 8,000 blue minibuses and more than 500 mid-buses (known as Higer buses), all providing the much needed transport within the city and its environs. It is estimated that the blue and white minibuses together provide transport services to about 1.1 million commuters every day, while the 500 mid-buses transport no less than 700, 000 commuters. The Addis Abeba city bus enterprise operates more than 800 city busses that transport an estimated 1.2 – 1.3 million passengers per day” (Mahlet, 2016).

Some reasons why the strike happens:

“The latest strikes by taxi drivers is one among a growing opposition by Ethiopians against an oppressive minority government that’s facing resistance from all corners of the country. Regime’s forces on Monday reportedly detained several students who were showing their solidarity with the taxi drivers. The students were staging a protest in the sub divisions of the city called Ayer Tena and Awtobis Tera. Their whereabouts is not yet know” (ECADF Ethiopian News, 01.03.2016).

Addis Taxi Strike 02.03. 2016

More strikes not only Addis:

“Taxis and other vehicles of public transportation in several towns in the Oromia region surrounding the capital Addis Ababa went on a strike on Tuesday. Holeta, Burayu, Ginchi, Ambo, Woliso, Asela, Bale and Robe were some of the towns hit by a massive transportation crisis. Some of the towns began the strike on Monday, on the first day of strike by taxi drivers in the capital Addis Ababa that brought the city to a halt. Even the scooters, the widely used form of transport in the smaller towns, locally known as “bajaj” were not to be seen in the streets” (…)”The government announced that the new regulations has been suspended for three months but the drivers want it scrapped altogether” (ESTA News, 01.03.2016).

Ripple effect:

“Though many taxi drivers that talked to the Voice of America (VOA) Amharic Service correspondent Eskinder Frew were skeptical that the government would scrap the directive, they said they were obeying the orders passed by their union leaders” (…)”The EPRDF government, which is facing a stiff opposition in Oromia region, is facing numerous challenges, including violent clashes in Gonder, as well as in eastern and southeastern regions such as in Gambella. When news broke that the taxis were boycotting in Addis, many mistook as the last straw that broke the camel’s back” (VOA, 02.03.2016).

Taxi Strike Addis 2016 P2

This Taxi Strike is about a certain regulation and law that will make it harder for the Taxi driver and also more expensive. Also make a system where many will lose the license quick and take away the livelihood of the Taxi Drivers. This here proves that there is discontent between the professional drivers and the authorities; seems also to be based on old grudges as I am impressed to see the similarities between the 1998 strikes and the ones now. Not the ones in 1974 even if they are more “famous” and had a greater historical impact on Ethiopia. This one here is regulation and monetary matters, as it also was in 1974 when the oil-prices was high because of OPEC blockade; the issue know may also be because of high oil-prices in Ethiopia, but also because of the new law, and that was the same in 1998. There is not harmony between the government/authorities and the Taxi Drivers, as the strike seem to continue, it has been on the third day and I wonder how long they will continue. Especially since it now is also happening in other towns than in Addis Ababa. The interesting thing is to see how little international response it has gotten or in media in general on the outside of Ethiopia. Don’t you think?

Hope that was interesting, because it was for me! Peace.

Reference:

AllAfrica – ‘Ethiopia: New Traffic Regulations Trigger Taxi Drivers’ Strike’ (10.07.1998) link: http://allafrica.com/stories/199807100058.html

Andargachew, Tiruneh – ‘The Ethiopian Revolution 1974-1987: A Tranformation from an Aristocratic to a Totalitarian Autocracy” – (03.12.2009) Cambridge University Press

ESTA News – ‘Taxi strike in Oromia towns following a two day strike in the capital, cabs in Addis resume work Tuesday afternoon’ (01.03.2016) link: http://ethsat.com/taxi-strike-in-oromia-towns-following-a-two-day-strike-in-the-capital-cabs-in-addis-resume-work-tuesday-afternoon/

Fantahun, Arefayne – ‘Taxi drivers go on strike protesting traffic bill’ (29.02.2016) link: http://www.ethiopiaobserver.com/2016/02/taxi-drivers-go-on-strike-protesting-traffic-bill/

Mahlet, Fasil – ‘NEWS: ADDIS ABEBA AND ITS SURROUNDINGS HIT BY MASSIVE TAXI DRIVERS’ STRIKE’ (29.02.2016) link: http://addisstandard.com/news-addis-abeba-and-its-surroundings-hit-by-massive-taxi-drivers-strike/

Nugent, Paul – ‘Africa Since Independence’ (13.06.2012) – Palgrave Macmillan; 2nd edition edition

UNDP Emergency Unit for Ethiopia – ‘Monthly Situation Report for Ethiopia – July 1998’ (11.08.1998) link: http://reliefweb.int/report/eritrea/monthly-situation-report-ethiopia-july-1998

VOA/EthioMedia – ‘Taxis in Addis end strike after directive’s implementation postponed’ (02.03.2016) link: http://www.ethiomedia.com/1010ideas/5093.html

Zone 9 –‘Taxi Drivers of Addis Ababa on Strike’ (29.02.2016).

UBOS Press Release: Uganda – Consumer Price Index – February 2016

UBOS Feb 2016 P1UBOS Feb 2016 P2UBOS Feb 2016 P3

Barclays Bank Uganda Limited’s Operations Not Affected By Impending Shareholding Decisions (01.03.2016)

Barclays Uganda

There have been some local, regional, and international media reports regarding a decision by Barclays Bank Plc to reduce its shareholding in Barclays Africa Group Ltd which involves twelve (12) African countries including Uganda. Barclays Bank Uganda Ltd. has since held two press conferences to clarify the details of these new developments.

Further to the clarifications offered by Barclays Bank, I wish to reassure the Ugandan public that the Barclays Bank Plc announcement does not affect the operations of Barclays Bank Uganda in any way and there will be no interruption to the services Barclays Bank Uganda Ltd extends to its customers.

The regulatory framework in Uganda ensures that any transitions of this nature are orderly and do not affect the soundness and stability of the financial sector as well as provision of financial services to customers.

Please note the following salient points

1. Commercial Banks in Uganda are incorporated locally and function as independent subsidiaries and not as branches. As such, Barclays Bank Uganda Limited is an independent subsidiary of the Barclays Bank Africa Group (in which Barclays Bank Plc owns 62.3% ) and is fully incorporated and registered in Uganda. Being a subsidiary, Barclays Bank Uganda has its own capital base, Management and an autonomous Board of Directors. This insulates the subsidiary from issues affecting the parent entity.

2. The Financial Institutions Act 2004 as amended by the Financial Institutions Amendment Act 2015 and associated regulations provides for a clear procedure for the disposal of Bank of Uganda supervised financial institutions’ shares. If the shareholders of any bank choose to dispose off their shares, the Bank of Uganda will undertake the necessary process of vetting new shareholders to ensure they are fit and proper to run a financial institution in Uganda.

3. Barclays Bank Uganda Limited remains solvent and liquid. It is well capitalised with a capital adequacy ratio well above the statutory minimum of 8.0 percent. The banking sector in Uganda as a whole has a strong asset and capital base with a capital adequacy ratio of 18.8 percent, as well as a relatively low level of nonperforming loans of about 5.3 percent as at December 2015.

I therefore wish to assure the Ugandan public and customers of Barclays Bank Uganda Ltd. in particular that there is no cause for concern arising from the media announcements by Barclays Bank Plc. Customers should therefore continue with their normal banking transactions without any anxiety. The Bank of Uganda is committed to prudent supervision and regulation of financial institutions in order to ensure the stability and soundness of the financial sector, as well as the safety of customers’ deposits.

Please direct any further enquiries to the Director Communications on calupo@bou.or.ug
Justine Bagyenda
EXECUTIVE DIRECTOR SUPERVISION
BANK OF UGANDA

Press Release: KCCA will be supported against all odds (01.03.2016)

KCCA at work

A lot has been said about Kampala Capital City Authority (KCCA) in the aftermath of the presidential and parliamentary elections.

What is becoming clear is that certain sections of people with vested interests are giving the President wrong information on KCCA’s role in the elections to try and cover up for their own inabilities or create room for their ill-motives to thrive.

There is no doubt that KCCA has undertaken massive infrastructure and service delivery initiatives that have positively turned around the image of the city. But this has never been smooth-sailing. Even as we battled to have KCCA undertake whatever projects it did, there were always forces whether from the opposition, the NRM or even mainstream government that opposed our (KCCA) firm and decisive approach to transforming Kampala. A lot of this opposition was based on selfish commercial interests. It is now visible that these forces are hoping to use these election results as an excuse to push through their agenda.Passing the KCCA budget in parliament every year was always a tag of war, but friendly forces in parliament mainly of NRM and a few from the opposition would see the logic of our efforts. Am happy and proud of the KCCA team led by Madam Musisi for all we achieved and still achieving.

lukwago-musisi

As minister for Kampala, I chose to firmly support KCCA so as protect them from the unending political altercations and enable them to concentrate on their technical work. I am happy that visible progress has been made. So the poor performance of NRM in kampala in the recent elections, is a challenge that we need to correctly analyze as a party and not blame on KCCA. Therefore, those rushing to give the President biased information against KCCA are only trying to use the challenge of the party’s poor performance in Kampala as a blessing in disguise, to further their earlier on anti- KCCA Agendas. A honest conversation is required or else we risk undoing the great milestones we have painfully achieved in the city. Let us asses how potent our party’s campaign and mobilization strategy in Kampala and other urban areas generally was? However, in doing this, we must avoid falling prey to those who now see this as a chance to roll back the gains made under KCCA and return this city to the dark ages of disorder, filth, wheeler-dealing and corruption. Already I can see different groups pouring back on the streets of downtown Kampala with intention of returning the city to its old chaotic and filth state. This will not be accepted. We have informed the police and we expect their full support in this noble duty of regulating the city’s trade environment.

JinjaRoad Roundabout Kampala

Kampala is the the image of uganda and its our nation’s signature mark. We must therefore decide how our image should look like. This is a must do irrespective of who is politically popular or unpopular in Kampala. As long as am still minister for Kampala, I will pursue this line with with neither fear nor indecisiveness!

Frank Tumwebaze, MP

Minister in Charge of the Presidency and Kampala Capital City, Government of Uganda