WikiLeaks – The interesting times of the Derg(or the Dirg) in the 70s Ethiopia

Mengistu_Book-Cover2_inside

This is maybe my longest blogpost in history and I am sure I’m not going to compete with this one. There was just so much juicy information about a time in Ethiopian history which is not really discussed or talked about. This documents and briefing’s from the American Embassy and Reftels that was sent to the US is telling a story that is interesting today. I personally have much more knowledge about Meles Zenawi and post him, then the time before. It has been discussed in certain books that I have read on the political history on the Great Empire of Ethiopia. What often portrayed about this time is very blurry. With this stories that I have found on WikiLeaks, they might shine a light and give some of the other ones who read my blog some new insights to special time in Ethiopia. This is at the time of the rule of the Derg and the PMC Chairman Lt. Gen Haile-Mariam Mengistu!

  1. November 1974:

The DERG executed 62 civilians, military detainees and hostages. Some of this people is the once that are involved in the top officials who are supposed to topple the PMC. One of the men who is supposed to executed are General Aman former Chairman of PMC, Also Prime Minister Endalkachew Makonnen, the Emperor’s grandson Admiral Desta. The one not on the list is the former Emperor Haile Selassie (WikiLeaks, 1974).

This happened because of an inner struggle for power between General Aman and Haile Miriam Mengistu, the last mention is the one that is suspected to inherit the title after General Aman. Amans strategy has been to collect his supporters and especially from his own area in Eritrea. Second part of it Pro-Monarchist has used Aman to stage a comeback. Third is too reduce the 120-man membership to 15 best educated junior officers, this to have a Junta especially made for General Aman. Fourth strategy is the disagreement over Eritrea. Where the PMC has stepped up the military actions and the PMC is not for a separate state as a solution and has sent reinforcement to secure the military situation. Fifth strategy for General Aman struggled because of his close ties to Haile Selassie. Haile Selassie is held at the Menilik Palace. Another press report is rumored that he will be executed (WikiLeaks, 1974).

Who is Haile Miriam Mengistu?

Was the official VC in the Provisional Military Commission (PMC), he is the chairman of the Armed Forces Coordinating Committee (AFCC). This has been in control since June in Ethiopia. HMM is an ordinance officer, a training officer of the 4th division in Addis Abeba (WikiLeaks, 1974).

The thing that is fearful for the American views of what is happening in Ethiopia. Soviet is trying to supplies and arms to the country (WikiLeaks, 1974).

25th November 1974:

This power struggle that happen on the 24th November happen a fight between Aman and the PMC. The foreign policy is still not certain. But first manifestation of this is the follow up on the Soviet offer of military equipment a few months ago (WikiLeaks, 1974).

30th January 1975 – Land Reform:

In a Land Reform seminar that was a two week this was opened at the National University (former Haile Selassie I University). There was 900 civilians, 400 military participants that was briefed by 28 expert lectures and 15 other military and civilian speakers. The experts and speakers spoke on topics of socialist programs and ‘administration of land and land reform’. PMAC Mengistu termed the participants “disciples of change”. Mengistu said that all of them carried the responsibility of building a greater Ethiopia. Minister of Land Reform Ato Zegeye Asfaw said: “Socialist Ethiopia will give land to the tiller and collective farms and communes will take care of the land and its utilization for the common good of the people” (WikiLeaks, 1975).

18th February 1975:

Heavy fighting has occurred in Asmara at the 18th. The attacks we’re concentrated on the Ethiopian Military Installation but also the American-Run Electricity generator in the other side of town (WikiLeaks, 1975).

There we’re two more demonstrations for Pro-Provisional Military Government in Addis Abeba that day. One was made out of war-veterans and the second one is in benefit of OAU, but both demonstrations was for the Ethiopian Unity. PMAC Haile Mariam Mengistu hold a speech in from of the veterans – where the main focus was to keep Eritrea as a region in Ethiopia (WikiLeaks, 1975).

The PMG has announced to confiscate land from 7 former Ethiopian ambassadors this include Zewde Gebre Selassie, this is because of their rejecting to move back to Ethiopia. Zedwe has now been changed with Kifle Wodajo who now is the Ethiopian Ambassador to the US (WikiLeaks, 1975).

22nd July 1975:

On the 18th of July a three day delegation led by Louis Reyes, Cuban Ambassador to Iran and EPMG official has signed a joint communique for diplomatic relations. Reyes said: “the historic victory of the Ethiopian people can serve as an example to Africa and the rest of the World”. Maj Mengistu said: “there is a lot Ethiopia can benefit from your Cuban experience” (WikiLeaks, 1975).

2nd Octorber 1975:

There is friction between Chairman Teferi Bante, First Vice-Chairman Haile Miriam Mengistu and Second Vice-Chairman Lt. Col Atafu Abate. The second echelon Viz. Major Sisay Habate and Lt. Col Asrate Desta (WikiLeaks, 1975).

In the last year there been two major coup plots. The two main people against the government, first student development campaign from E.G. Major Kiros Alemayehu and the one in charge of media – Major Nadew Zekarias (WikiLeaks, 1975).

The Derg has struggled with price-control and minerals exploration (financial restraint).The government has been civilian administrative structure down to Woreda(county level). The civilian cabinet has been stable. Below the ministers is now permanent secretary (department manager) and vice-ministers (the same as assistant secretaries). The government is still not consulting the technical experts before public policy statements. They have even announced without checking with Urban Land Reform. Future policy decisions are for rural land reform, nationalization of banks and insurance agencies etc. Also getting less technicians in government to get consensus (Wikipedia, 1975).

22nd October 1975:

Addis has been tense the last three days after rumors of tension between Mengistu and Atenafu. This has threats to dissolve the military council and either both or one of them are arrested. The view the Derg shows the picture of unity to the public (WikiLeaks, 1975).

21st April 1976:

PMAC First Vice-Chairman Major Haile Miriam Mengistu had his first national speech on both Ethiopian radio and TV.

The main points of the speech was how the feudal system of both Menelik and Haile Selassie.

  • The imperialist has used various techniques infiltrating the system with missionaries, teachers, merchants and entrepreneurs, government advisers and experts.
  • The Ethiopian Revolution have accomplished the deposition of former emperor, declaration of socialism, nationalization of means of production and distribution like rural land, urban land and extra houses. A new labor law and formation of Peasant association.
  • Mengistu announced to the public that their scientifically working on making Ethiopia a People’s Democratic Republic.
  • New national democratic revolutionary program to liberate the people from imperialism, neo-colonialism and feudalism – grant democratic freedom to friends of the revolution…
  • Addressed the Eritrean problem and called them out as exiled aristocrats and foreign imperialist, only reactionary bandits there.
  • Mengistu also addressed people in the country side and progressive workers to form a United Front to work against Anti-Revolutionaries.

(WikiLeaks, 1976)

22nd April 1976: Ethiopian revolution to continue:

Vice Chairman Mengistu has asked for continuing support for it, that authority from center to the provinces. Also still no recognition of the Eritrea which is a special case.

Important part of the programs:

The program is based on far-left militants and also on a Marxist model, and a Workers party is created, which is supreme and has to govern operation of the government. Also the focus on class struggles.

  • Public sector is to becoming bigger and private farms will get more government support.
  • Nationalization of both production and distribution with private incentives are enhanced.
  • Veterans are now offered financial, educational and health benefits.
  • Woman are mobilized for productive work and freed from limited roles that have been available for them.

(WikiLeaks, 1976)

The Ethiopians problems will be tackled from the devolution from the center of main authority. The Eritrean problem is still not questioned in a special way, it’s seen as a provincial issue. The foreign policy of Ethiopia is remained unchanged (WikiLeaks, 1976).

24th April 1976:

There been unauthorized demonstration that was followed by government warning against “progressive” that takes control over shops and private business. There been attempting of looting stores and shops near Addis Abeba, in Nazareth and Debra Zeit (WikiLeaks, 1976).

Because of this Mengistu has promised free speech and freedom to demonstrate. This led to unreasonable behavior from the public that has threatened the public order. Mengistu himself has said their promoting: “raising revolutionary consciousness of the masses”. The hope is that the Ethiopian Easter weekend which is a family and religious affair which will lead to more calm and less tension – which will last over the weekend (WikiLeaks, 1976).

24th May 1976:

Megistu has had a MediVac to China on the 20th May. What Haile Mariam Mengistu is expected to have it can either be gastritis which can lead to stomach cancer; he could have a brain tumor and also hurt after a gun wound. The unscheduled flight from Bole Airport went at night 22:00 – where it was reported to leave for China. Lt. Col. Atnafu returned to Addis Abeba from Gojjam (WikiLeaks, 1976).

10th September 1976 – Condolences for Mao’s Death:

The Ethiopians sent messages of condolences to Wu The and Hua Kuo Feng. The leaders of the revolution are also being in the Chinese Embassy signing in the condolence book. The message from the leaders is setting Mao on the levels of Marx, Engels and Lenin (WikiLeaks, 1976).

24th September 1976 – Assassination attempt: 

Eyewitnesses tell that there were automatic weapons firing that happened near a football Stadium at 2025 from two civilian automobiles. One was moving west from the revolutionary square. They fired both in the air until they turned south past fourth division headquarters. The followed by an explosion and another further down the road a few minutes later. A dozen store windows broken after the shooting. Following the incidence the EPMG put up a road block in the intersection surrounding the area. All vehicles and passengers are being searched. The roadblocks were taken away the day after (WikiLeaks, 1976).

25th September 1976:

Heavy military control in Addis Abeba this morning after yesterday’s incidence. There has been big patrol activity after the attempted on Haile Miriam Mengistu the day before. Rumors have it that Mengistu has been injured in either leg or foot (WikiLeaks, 1976).

26th September 1976 a staged morning Workers-Rally:

Before the staged morning Workers-Rally there been an ambush on Haile Meriam Mengistu the 23th September. Which wounded him and this lead to Peasant Associations and urban dwellers to meet in the Revolution square in solidarity. It was a four hour event, which was hold tight by armed guards where the speakers spoke on the importance of keeping up the efforts of the revolution. Next troubled date for the PMC will be the 28th when schools reopen (WikiLeaks, 1976).

CIA involvement in Anti-Regime activity:

CIA is supposed to be supporting Placards and EPRP. News broadcast is saying: “EPRP is Cia”(…)”Away with CIA agents, disguised as tourist”(…)”paid CIA agents”(…)”Yankees go home”(…)”No more chills and CIA” (WikiLeaks, 1976).

29th September 1976:

Some rumors has been spread that it was a fake assassination attempt on Mengistu. This happening after the rally is to make him a hero. Also put restraints on the EPRP as a CIA front. There is issued more strikes. It will also be occurring more executions even though none of the would-be assassins. PMAC has gotten more support from the rallies and media this is from the peasants groups and workers. The reaction to it has put EPRP who has been seen as responsible for the attempt. Students might make trouble without the EPRP assistance. The violence of this last week might end up some calm this week (WikiLeaks, 1976).

29th September 1976:

Izvestiya reports also that there was an assassination attempt on PMAC Haile Mariam Mengistu. Also, there was one important sign in one of the demonstrations in Addis: “bring CIA intrigues to an end” (WikiLeaks, 1976).

Mengistu

3rd November 1976 – Afro-Asian People’s Solidarity Organization (AAPS) Conference:

At the conference it was a total of 7,000 or 8,000 peaceful Ethiopian attendance mid-afternoon rally to support and also show solidarity to Southern Africa. Chairman Ato Tesfaye Tadesse who introduced AAPS Second General Yousef El-Sabat, Iraqi Deputy Secretary-General of AASP Nouri Abdel Razzak, Secretary General of ANC Alfred Nzo, Crypriot Dr. Vasses Lyssarides, Soviet Pressidum member Figret Tabeev, Angolan representative Dr. Olga Lina, Vietnamese representative Tran Hoai-Nam, Cuban delegate Ramos Claudis, Yemen representative Anis Hassen Yahya, West German Committee of Anti-Imperialists solidarity delegate  Peter Wal and Delegate of Western European Public Organization Conon Gor (WikiLeaks, 1977).

Main rhetoric from the conference is against racism, imperialism, oppression, praising the Ethiopian socialist revolution and hospitality. We’re they also was supporting complete liberation of Southern Africa. The Vietnamese, Angolan, Cuban and the ANC did not mention the US during the conference. While other made references to the economic ties between Southern Africa and the US. The delegates from abroad are set to establish legitimacy for the PMAC and Mengistu (WikiLeaks, 1976).

2nd May 1977 – TV interview of Haile Meriam Mengistu: 

He will be interviewed by French and Swedish journalists and will be aired on French TV. One of the main questions was related to the Expulsion of U.S. Official Personnel last week. Mengstu has answered to that U.S. agencies whose activities has been terminated and were in Ethiopian on the basis of old agreements with Haile Selassie. The revolution is now clearing out the leftovers from the imperial era (WikiLeaks, 1977).

17th May 1977:

Ethiopian-Vietnamese relations are strong, especially considering the wish from the Ethiopians of getting former U.S. Military equipment from the Vietnamese. There been secret visits from Ethiopian officials to Vietnam. There is not sure if the Vietnamese will support EPMG. A support with to the Ethiopians … they can complicate their relations with PRC and the US (WikiLeaks, 1977).

25th May 1977:

Claude Cheysson from the EEC and was a part of a three person delegation to Addis Abeba the 18th -20th of May. PMAC Haile Mariam Mengistu signed a 30 million Birr aid accord during the visit. This aid accord was based for a rural water development project. This aid accord is part of the already with 280 million birr that will be available for the government of Ethiopia. The EEC program mission was completed in the June of 1976. Then there was put aside 100 million birr. The Amibara agriculture development project which has a aid accord accordingly to be set for a 35 million birr. The EEC follows the guidelines of determines which projects that gets funding. Foreign Affairs minister Col. Dr. Felleke Gedle-Ghorghis: “the government gives priority to rural development. Particularly agriculture, which employs vast majority of the Ethiopian people” (…)” Multi-purpose package programs which provides support to small holder farms through extension, livestock and range development projects”. The projects will be mostly into a agricultural sector, either development with infrastructure like rural roads. Also projects that are about industrial development which is focused on the output of agricultural produce. 10 percent of all the development is going to other then national development but for projects for regional projects. This kind of projects is the once that are on the Lake Rudolph and the Omo to develop tourism (WikiLeaks, 1977).

29th May 1977 – Speech to the Naval College and Military academy gradution:

(This was happing at the Jubilee Palace – Former palace of the Emperor Haile Selassie).

Chairman Lt. Col. Haile Mariam Mengistu saying: “there will be no problem with regard to arms”. Further comments from the Soviet Union and that helped and “won high benefits” because of the Ethiopian revolution. Fear from “reactionary of neighboring areas”. Mengistu focused on the responsibilities to the motherland, secure national unity and also territorial integrity. He characterized American imperialism as an arch enemy and is now in league with reactionary Arab regimes. American imperialism he says: “by cutting its arms aid” (…)”now it’s time when we have to crush anti-revolutionary encirclement with unity and determination stronger then steel and hoist a new banner of victory at price of our blood”. On Djibouti want to forge a stronger relationship with: “neighboring reactionary forces” (…)”to withstand any and every step which might be contrary to national interests of Ethiopia in Djibouti” (WikiLeaks, 1977).

30th May 1977: Meeting with the Egyptian ambassador.  

The position of Ethiopia is that Mengistu is not strong, but if he can last until September, then he can be in a stronger position. PMAC Mengistu has to be effective with the use of the peasant army which is now in training. The peasant army will not be used in Bale-Ogaden region because of the Somali tribesman and the semi-desert where the army would be a disadvantage towards them. The result of the guerrilla war has hurt Ethiopian army and the Ethiopian situation in Bale-Ogaden has been bad for them. Some even describe it as a “bloodbath”. With this situation the civilian-military relationships in Addis could become tense. The Civilians might even use the peasant military army and Kebele Defense Forces to make a move against PMAC. Mengistu went on a two-day visit Libya after being in Moscow; this was to secure funding of Soviet War Material. This is to secure shipment of heavy weaponry from Libya to Ethiopia. Also a possibility for Cuban forces into Eritrea (WikiLeaks, 1977).

17th June 1977:

The East German Politburo member Werner Lamberz together with a two Foreign Affair deputy minister Willerding, Foreign trade deputy minister Clausnitzer, Deputy Planning Commission Chairman Dieter Albrecht and several other SED-Central Committee members. They are on a visit as a delegation from the 13th to the 17th in Addis Abeba (WikiLeaks, 1977).

This delegation has had lengthy discussion with PMAC Chairman Haile Mariam Mengistu and PMAC Second Gen. Capt. Fikre-Selassie Wogderess at both FONMIN and National Palace. Also the delegation went on a inspection tour of the Siga Meda military training (WikiLeaks, 1977).

The Soviet Union has made a EPMG a priority and until this date, been spending great funds on the banking on it and hoping for solidarity, some free advice and also high levels visits. On the negative side the Ethiopian put up a front to the Somali Ambassador during the 15th July. This hasn’t served the Soviet Block interests, and can only lead to more polarization between the Soviet clients in the Horn (WikiLeaks, 1977).

22nd June 1977:

On the OAU African Refugees day on the 20th June Haile Mariam Mengistu called upon the OAU members to ratify OAU convention on African Refugees. At the same time he urged Ethiopian refugees to return home without fear of retribution. Mengistu noted that there is special cases and need efforts in Zimbabwe, Namibia and South Africa (WikiLeaks, 1977).

UN High Commission on Refugees (UNHCR):

There been movement from Somalia and Ethiopia. Eritrean youth, one identified as Kidane Kibrom has stayed in Hargeisa and El Garis Ethiopian Refugee Camps where has for the last 14 months. Kibrom claims 118 Ethiopians has had a hunger-strike in the camps for lack of jobs and training. UNHCR is claiming that the funds they have put for the camp is being used for other purposes then the camp (WikiLeaks, 1977).

6th July 1977 – Mengistu on the Middle East:

Mengistu on the settlement on the Middle East question is that Israel should be recognized, but also a quick withdrawal of forces from the Arab territories since 1967. Also added the Palestinian people have a right to a homeland, but must be a peaceful means in a peaceful settlement (WikiLeaks, 1977).

7th July 1977 – OAU statements: 

Lt. Col Haile Mariam Mengistu was not interested in the interference from Somalia and Sudan on Ethiopian affairs. Mengistu was committed to “special committee” on the problems between Sudan and Ethiopia. This will solve the matter in a way Ethiopia sees fit. Like on the Eritrean question: the position they have is that Sudan wants to assure them independence. Mengistu met with 5 of 9 states in the committee to discredit by most OAU. Mengistu did say at the summit that there was a difference between Sudan and Somalia as problem makers. The Somalian view on rule of law is a total disgrace and has a long standing territorial claim. Where the Ethiopian issue with Sudan is more of a Sudanese leaders where they undermine the Ethiopian unity and territorial integrity (WikiLeaks, 1977).

15th July 1977;

On the 14th of July there has been report of movements from the Ethiopian army. The reports are saying that the army has left the base of Tatek Meda Training base going to Eritrea and Ogaden. The number of army personnel is 83 bus loads of militia bound for Assab. EPMG is reported to reverse the actions in Northern Eritrea, but its most likely to be sent to Massawa. A small contingent of regular army has been sent to Asmara from Jimma in the Southwest Ethiopia. There are even reports of more army movements. The numbers of movement is 16 planeloads (some of them was aircrafts including some 720 BS), even militias are planned to be moved to Dire Dawa. Most of the bridges and highways to Dire Dawa are out of order. Therefore the trainload of 25 cars apparently left Addis Abeba but they will not come whole way directly to the destination of Dire Dawa. They have to hike the rest of the way when the rails are done (WikiLeaks, 1977).

19th July 1977:

Mengistu called in the French Ambassador after seeing the ambassadors from east European countries in Addis Abeba. In this meeting with the eastern European ambassadors he told about the bad situation in Eritrea with the fall of cities of Keren and Decamere. He even complained about the aid the Soviets did not give to Ethiopia. Mengistu also claimed that Somalia Army Units has crossed over the border into the Ogaden. The French ambassador considered the war already had begun. The Romanian Ambassador added that Mengistu had said “Opposition-Controlled the territory including the Omo-Valley and the city of Beica 50 kilometers from the Sudanese border”. Mengistu also claimed that the Eritrean “liberation forces” has gained triple strength because of support from Sudan and Saudi Arabia (WikiLeaks, 1977).

23rd July 1977:

The issues that Djibouti has by the border to Ethiopia are making a lot of trouble. From Sudan has given a non-flight and also no overflight rights for any Ethiopian Registered Aircraft (WikiLeaks, 1977).

Further PMC Lt. Col Haile Mariam Mengistu has received at Grand Palace Issa representative who has described the Somalia attacks as “calculated criminal act on the part of Mogadishu regime”. The Patriotic Media is telling victories stories of Ethiopian revolution and the continued call for voluntary contribution to the campaign (WikiLeaks, 1977).

There seems to sabotage on the Addis Abeba to Djibouti railway. After the Somalian Mogadishu based government has sent infiltrators to blow up bridges along the railway. Though the Sudanese doesn’t seem eager to comply to Mengistu accusation of closing the airspace (WikiLeaks, 1977) .

Issa representative comments: “acts of provocation for the consequence, of which Ethiopia should not be held responsible, reactionary regimes of Sudan and Somalia fully responsible for the deterioration of peace and security in Eastern Horn of Africa” (WikiLeaks, 1977).

From the 25 of June 1977: the final stages of military training of the People’s Militia to fight against the Western-Somali Liberation Front. The Ethiopian People’s Militia fights for peace and stability on the African horn. On the 25th of June the military contribution gets a one-month salary over the one year campaign (WikiLeaks, 1977).

25th July 1977:

PMAC Haile-Mariam Mengistu has from the 23th of July coordinated the Armed Forces and People’s Militia. The Headquarters are set in Harar for the fighting in Eastern Ethiopia and in the northern Ethiopia are located in Asmara. Because of this there was appointed 3 new Joint Commands and 4 new division commanders (WikiLeaks, 1977).

5th August 1977: U.S. Arms assistance to Somalia:

PMC Haile Mariam Mengistu is not happy with the arms supply of Somalia which is seen as a foreign threat. Mengistu stated that the U.S. relationship had with previous government – described as a close cooperation in economic and defense. He had no intention of criticizing the US Government. US failure takes seriousness of Ethiopian security. In Emperors time with Sudan Government used Socialist arms from USSR and China to support secessionist movements in the North. Somalia was amassing arms from the USSR, they have 300 tanks. When Ethiopia asked for help from US Government they got empty handed. Ethiopian has reserved and has no actions towards US. What damaged Ethiopian image was the example of Spencer and Levine who helped Anti-Revolutionary feudalists to flee to Sudan and supplying them with American arms. Mengistu said that EPMG can no longer rely on US supplies. This is to protect independence and national integrity and will look elsewhere for arms. Ethiopia sees this to keep territorial integrity and fear of aggression from its neighbors that the US Government now supports (WikiLeaks, 1977).

8th August 1977:

Former Ethiopian Foreign Minister Kifle Wodajo together with ex-minister Gedamu Tesfare thinks that the west is judging Soviets possibilities to settle the differences between Somalia and Ethiopia. What is important for Mengistu is the power and not Ethiopian nationalism, even with the growing pressure from the Soviet. Even the agents within the Revolutionary Council are partly open to give up parts of the Ogaden. Somalia claims to a larger area then only Ogaden. The set up will be to give the most of of the Ogaden. Kifle believes that the Soviet can on the contrary to the western believe that the war between Somalia and Ethiopian can be solved to Soviets advantages. Even the regimes terror tactics is silences the public (WikiLeaks, 1977).

9th August 1977:

Moscow is seeking to save the Pro-Soviet regime of Lt.Col. Haile Meriam Mengistu from being overthrown or collapsing, especially with last military defeats like the ones in the Northern Province of Eritrea and the disputed region of Ogaden along with the Somalian border. There is a claim is that the Soviet has a deal in order for both Somalia and Ethiopia. This deal will give the most of Ogaden to the Somalia but the significant towns of Harrar and Dire Dawa gets to stay Ethiopian. There has been reaction on the issue from the Somalia President Mohamed Siad Barre. Instead it seems more like the Western Somalia Liberation is supported by the Somalian Government. On next Thursday there will be a special mediating committee of 10 African countries in Libreville, Gabon, where delegation from both Somalia and Ethiopia. Spokesman from Western Somalia Liberation Front says: “we do not expect any pressure and even if they do this, we will not accept it” (…)”out lands extends up to the Awash river and we are not going to compromise. We are going to take back all of our land” (…)”under no circumstances can we stop before taking Harrar and Dire Dawa” (…)”today that Somali territorial claims covered all of the Ethiopia’s four southeastern provinces of Bale, Sidamo, Arrusi and Harrarghe and are not limited to Ogaden region itself”. The disputed area of the Somalia and Ethiopia is 1/3 of the land mass Ethiopia and the equivalent of half of Somalia. The issue that Soviet has that they want to continue two have to Marxist states and not lose either. And with the nationalism in both countries it will be a feat to keep Mengistu in power when losing all that land. Ethiopia claims that Somalia has gone in will full-scale invasion from regular Somali Army Units. The Somalian Government denies this but says that the Front’s army is 30,000-man guerrilla. At the same time the goals and claims of territory from Somalia is the same from both government and the guerrillas (WikiLeaks, 1977).

25th August 1977:

Chairman Lt. Col Mengistu said during a patriotic rally on 24th August. That Ethiopian revolution is supposed to bring equality, justice, democracy and a classless society. Mengistu was also addressing certain groups as masquerading as progressive but in reality is “anti-people” the groups is expected to be EPRP and EDU. Also he was direct on the Eritrean secessionist which he called aristocratic and ex-patriotic control over Eritrean production. External enemies are set to be Bare and Somalis (WikiLeaks, 1977).

29th August 1977:

Outtake from the Ethiopian Herald August 28th:

“It sad commentary that even USA which championed Ethiopia’s rights in 1935, has today betrayed its own cardinal principles, and reward aggression by refusing to deliver weapons bought by Ethiopia for it own defence. Such attitudes will only add fuel to the flame and disturb international peace and security. Indeed it is an unwise act from so great a height” (WikiLeaks, 1977).

If the US Government wishes to have a normalized bilateral relationship with the Ethiopian government, then it has to become a link between two. Especially with Ethiopian sending a ambassador they intend to send to Washington (WikiLeaks, 1977).

31th August 1977:

There have recently been small insurgencies from Somalia in Ogaden region. Ogaden region is in flames. Policies been announced on the 10th and 17th from the State Department Spokesman. The ambassador (the U.S.) is refraining from supplying arms to Somalia. Further on thinks the ambassador that the U.S. government should not take sides in this dispute between Ethiopia and Somalia. Berhanu Bayeh says that the immediate concern is that US Weapon and spare parts. The holdings of arms have been occurring during the last ten years. Because of that the people of Ogaden has suffered because of this. The Ethiopian Army has gone after the invaders, but has issues with having equipment. Now lacking the defensive arms that Ethiopian army gotten earlier from the US Government. Mengistu wasn’t in the way of ordering new shipments of arms. This was more honoring older contracts and sending both ammo and spare parts to the Ethiopian Army. Also, that the arms would be delivered and resumed immediately (WikiLeaks, 1977).

There has been official Ethiopian Ambassador in Washington, USA. This is since 10. February 1975 (WikiLeaks, 1977).

19th September 1977:

There been rotations and new appointments in the government there is 32 who are both civilian and military that are changing positions. This is three ministers, an Armed Force Chief, Air Force Commander and 16 Ambassador-designated (WikiLeaks, 1977).

4th October 1977:

The Nigerian Federal Commissioner for Internal Affairs Alhaji Umaru Shinkafi was in Addis Abeba the 3rd October. The Nigerian President Gen Olusegun Obasanjo sent a special message to PMAC Haile Mariam Mengistu. In that message it was details on his mission to establish normal relations between Somalia and Ethiopia. Make sure that they follow the good progress for the meetings in Gabon in August and follow up these. Still with these negotiations happening there is still heavy fighting in the Ogaden. Ethiopia will like the Nigerian efforts both for Inter-African but also on an international perspective (WikiLeaks, 1977).

31st October 1977:

Cuban Foreign Minister Malmierca is reporting that Mengistu will shortly take a trip to Cuba to meet Castro. This will escalate the presence of Cubans in Ethiopia and might make a difference in the friendship between the nations. This visit from Mengistu might not deliver any change to the relationship if the comments from US Policy Advisor Alfredo Ramirez Otero. Even Castro doesn’t have a specialty for Africa in any way politicially. The Cubans has already a tiny presence in 300 “teachers”. There is a big possibility that the Cubans have forces fighting the Somalian for the Ethiopians. The Cubans want to have talks between the Government of Somalia and the Government of Ethiopia. It is accepted that the Soviet and Cubans have told Mengistu has to show moderation towards the US. The Cubans are opposing the struggle against the Ogaden and the Eritrean. Malmierca has said “that the Ethiopian and Somalian should get into some talks” (WikiLeaks, 1977).

25th November 1977:

The Ethiopian Foreign Minister Felleke Gedle-Ghiogis will be in Sierra Leone for a OAU Ethio-Sudan Committee meeting (WikiLeaks, 1977).

28th November 1977 – Italian Communist Party visit Addis:

The Italian Communist Party has favored the Ethiopia over Somalia. Italian Communist leader Giancarlo Pajetta a MP in Italy has visited Ethiopia. The plan was made by Berlinguer and a Derg Representative. It was on the 60th Anniversary celebration in early November in Moscow. The Italian Communist Party has been unsure about the Ogaden war and the Ethiopian Revolution. The Italians have traditionally supported the Somalia’s and the road to Socialism and the alliance with Moscow. Because of the visit they now show their full support of Ethiopians. Pajetta feels the PMC Mengistu devotion to the world communist cause. The Italians has tried to get the Ethiopians to have talks with the Somalis. The Ethiopians will not discuss anything with them until the forces from Somalia are out of the territory. Pajetta had hope that the friendship with Ethiopia would open it up talks. The visit of Pajetta most important effect is that the PMC will have the Moscow support of EPMG and also support the Eritrean liberation force PLF. They want to give them autonomy from Addis. There have also been no words that Pajetta also went to Mogadishu (WikiLeaks, 1977).

14th December 1977:

Haile Mariam Mengistu told two U.S. congressmen: “it is not our objective to cross our borders once we have thrown the Somalis out of Ethiopia. We intend to repeat the same mistake as the Somalis”. Mengistu stated further: “Policy of non-aligment” (…)”Peace, equality and social justice” (…)”A struggle is going on at every level between those who would like to see the old reinstituted and those who are determined to protect the revolution” (…)”intent and the objective of the revolution have been remain the restoration of Human Rights to the greatest majority of the Ethiopian people”. Representative Bonk from the congress is hoping for a peaceful solution in the Ogaden region, the Chairman of the PMC Mengistu said it wasn’t necessary to involve the OAU in the conflict (WikiLeaks, 1977).

24th December 1977:

Said Barre went on a visit to Madagascar where he hold a speech at the international airport in Antananarivo where the message was “Other party (Ethiopia)” should also come to Madagascar. Barre said the talks with the Madagascar government officials where he said: “the great questions of today notably concerning eastern Africa, the Somali-Ethiopian conflict, Somali-Malagasy relation” (WikiLeaks, 1977).

Hope this have given you some insights and been inspiring!

Peace!

Links:

WikiLeaks – ‘ETHIOPIA AND CUBA ESTABLISH DIPLOMATIC RELATIONS’ (22.07.1975) Link: https://wikileaks.org/plusd/cables/1975ADDIS08717_b.html

WikiLeaks – ‘SHAKE-UP IN TOP MILITARY COMMAND STRUCTURE’ (25.07.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS04505_c.html

WikiLeaks – ‘NEW HIGH-LEVEL CIVILIAN AND MILITARY APPOINTMENTS’ (19.09.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS05529_c.html

WikiLeaks – ‘LAND REFORM SEMINAR OPENS IN ADDIS ABABA’ (30.01.1975) Link: https://wikileaks.org/plusd/cables/1975ADDIS01173_b.html

WikiLeaks – ‘REPORTS OF MILITIA MOVEMENTS TO COMBAT AREAS’ (15.07.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS04332_c.html

WikiLeaks – ‘NIGERIAN EFFORT TO MEDIATE HORN CONFLICT’ (04.10.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS05786_c.html

WikiLeaks – ‘PROPOSED ITINERARY FOR VISIT TO THE HORN: ETHIOPIA’ (25.11.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS06574_c.html

WikiLeaks – ‘VISIT OF SOMALI PRESIDENT TO MADAGASCAR;’ (24.12.1977) Link: https://wikileaks.org/plusd/cables/1977ANTANA02363_c.html

WikiLeaks – ‘ETHIOPIAN REACTION TO MAO DEATH’ (10.09.1976) Link: https://wikileaks.org/plusd/cables/1976ADDIS10196_b.html

WikiLeaks – ‘SOVIET PRESS SUMMARY – SEPT 29’ (29.09.1976) Link: https://wikileaks.org/plusd/cables/1976MOSCOW15363_b.html

WikiLeaks –‘SITUATION IN ETHIOPIA AS OF 1500 HOURS (EST) FEB. 19, 1975’ (19.02.1975) Link: https://wikileaks.org/plusd/cables/1975STATE036564_b.html

WikiLeaks – ‘VIETNAM MESSAGE OF SUPPORT FOR ETHIOPIA’ (17.05.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS03091_c.html

WikiLeaks – ‘CONVERSATION WITH EGYPTIAN AMBASSADOR’ (30.05.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS03366_c.html

WikiLeaks – ‘EAST GERMAN PARTY-GOVERNMENT DELEGATION VISIT TO ETHIOPIA’ (17.06.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS03805_c.html

WikiLeaks – ‘ETHIOPIAN MINISTRY OF FOREIGN AFFAIRS DENIES’ (09.08.1977) Link: https://wikileaks.org/plusd/cables/1977STATE187303_c.html

WikiLeaks – ‘VISIT OF EEC REPRESENTATIVE – CLAUDE CHEYSSON’ (26.05.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS03305_c.html

WikiLeaks – ‘ENCIRCLEMENT CONSPIRACY CONDEMNED AS DEFENSE CAMPAIGN PREPARATIONS CONTINUE’ (23.07.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS03917_c.html

WikiLeaks – ‘FRENCH AMBASSADOR IN ADDIS ON MENGITSU BRIEFING’ (19.07.1977) Link: https://wikileaks.org/plusd/cables/1977MOSCOW10403_c.html

WikiLeaks – ‘THE HORN AS SEEN BY FORMER ETHIOPIAN OFFICIAL’ (08.08.1977) Link: https://wikileaks.org/plusd/cables/1977PARIS22990_c.html

WikiLeaks – ‘VISIT OF HIGH-LEVEL ETHIOPIAN DELEGATION’ (31.10.1977) Link: https://wikileaks.org/plusd/cables/1977HAVANA00485_c.html

WikiLeaks – ‘TENSIONS AGAIN PEAKING IN THE DIRG?’ (22.04.1975) Link: https://wikileaks.org/plusd/cables/1975ADDIS12499_b.html

WikiLeaks – ‘SITUATION IN ADDIS’ (24.04.1976) Link: https://wikileaks.org/plusd/cables/1976ADDIS04909_b.html

WikiLeaks – ‘AFTERMATH OF SEPT 26 RALLY’ (29.09.1976) Link: https://wikileaks.org/plusd/cables/1976ADDIS10614_b.html

WikiLeaks – ‘ITALIAN COMMUNIST PARTY DELEGATION AFFIRMS SUPPORT OF ETHIOPIAN SOCIALIST REVOLUTION’ (28.11.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS06603_c.html

WikiLeaks – ‘INR/AF ASSESSMENT OF ETHIOPIAN SITUATION’ (25.11.1974) Link: https://wikileaks.org/plusd/cables/1974STATE259383_b.html

WikiLeaks – ‘ETHIOPIAN POSITION ON MIDDLE EAST SETTLEMENT’ (06.07.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS04154_c.html

WikiLeaks – ‘WOUNDED VICE CHAIRMAN GIVES PRESS CONERENCE’ (25.09.1976) Link: https://wikileaks.org/plusd/cables/1976ADDIS10518_b.html

WikiLeaks – ‘ETHIOPIAN VIEWS ON REFUGEES’ (22.07.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS03887_c.html

WikiLeaks – ‘PMAC FIRST VICE CHAIRMAN ADDRESSES THE NATION/ SUMMARY’ (21.04.1976) Link: https://wikileaks.org/plusd/cables/1976ADDIS04821_b.html

WikiLeaks – ‘MEETING WITH MENGISTU’ (29.08.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS05172_c.html

WikiLeaks – ‘PMAC CHAIRMAN MENGISTU SPEAKS MIND’ (25.08.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS05132_c.html

WikiLeaks – ‘AAPSO MASS RALLY AND DELEGATE MEETINGS WITH PMAC FIRST VICE-CHAIRMAN , MAJOR MENGISTU’ (03.11.1977) Link: https://wikileaks.org/plusd/cables/1976ADDIS11444_b.html

WikiLeaks – ‘IS FIRST VICE-CHAIRMAN MENGISTU ILL?’ (24.05.1976) Link: https://wikileaks.org/plusd/cables/1976ADDIS06257_b.html

WikiLeaks – ‘MEETING WITH MENGISTU’ (31.08.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS05227_c.html

WikiLeaks – ‘REPORTED ASSASSINATION ATTEMPT ON MENGISTU’ (24.09.1976) Link: https://wikileaks.org/plusd/cables/1976ADDIS10506_b.html

WikiLeaks – ‘MENGISTU SPEECH AND PROPOSALS AT OAU SUMMIT’ (07.07.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS04183_c.html

WikiLeaks – ‘CHAIRMAN’S SPEECH AT NAVAL COLLEGE AND MILITARY ACADEMY GRADUATION’ (01.06.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS03435_c.html

WikiLeaks – ‘PMAC CHAIRMAN PROTESTS US ARMS ASSISTANCE TO SOMALIA’ (05.08.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS04752_c.html

WikiLeaks – ‘PRESS RELEASE OF CODEL TSONGAS/BONKER FOLLOWING’ (14.12.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS06851_c.html

WikiLeaks – ‘MENGISTU’S TV INTERVIEW’ (02.05.1977) Link: https://wikileaks.org/plusd/cables/1977ADDIS02738_c.html

WikiLeaks – ‘ANTI-CIA PLACARDS AGAIN EVIDENT DURING EPMG-STAGED SOLIDARITY RALLY’ (27.09.1976) Link: https://wikileaks.org/plusd/cables/1976ADDIS10527_b.html

WikiLeaks – ‘PMAC’S NATIONAL DEMOCRATIC REVOLUTIONARY PROGRAM: EMBASSY’S INITIAL COMMENTS’ (22.04.1976) Link: https://wikileaks.org/plusd/cables/1976ADDIS04881_b.html

WikiLeaks – ‘CONG. TESTIMONY: AF CONTRIBUTION TO Q AND A’S’ (28.11.1974) Link: https://wikileaks.org/plusd/cables/1974STATE262329_b.html

WikiLeaks – ‘THE DIRG AND THE GOVERNMENT’ (02.10.1975) Link: https://wikileaks.org/plusd/cables/1975ADDIS11773_b.html

CABINET APPROVES THE KASESE DISASTER RECOVERY PLAN 2014/2015

August 14th 2014

On 1st May 2013, three rivers of Mubuku, Nyamwamba and Nyamugasani in Kasese district burst their banks causing massive flooding and devastation of Kilembe Mines estates, Kasese town and the surrounding villages. The disaster had far reaching effects resulting into the death of eight persons, destruction of property and displacement of more than 3000 persons, many of whom were forced to live in emergency camps. Cabinet therefore, noted the magnitude of destruction that had occurred as a result of heavy rains which caused floods in Kasese district on May 1st 2013 and directed the Ministry of Finance Planning and Economic Development to avail funds amounting to Shs 39 billion to facilitate the relocation and resettlement of people in all areas that were highly prone to landslides and floods.

This was because Cabinet realized that emergency operations and responses to the medium term development initiative aimed at restoring basic services, the recovery needs of the affected populace are still immense and require a more comprehensive approach for full recovery.
Therefore, the Kasese District Disaster Recovery plan 2014/2015 is a comprehensive response to the recovery needs of the affected areas and surrounding communities by reducing their vulnerability and enhancing their resilience to possible disasters of a similar nature.
The floods affected several sectors including Agriculture where food security of the people remains threatened. It will take approximately two planting seasons for the affected people to recover their livelihoods. Indeed more than 100 livestock perished, about twenty nine fish ponds were destroyed and 731 acres of agricultural land with crops were washed away by the flooding rivers.

The transport sector was not exceptional. The disaster resulted into the destruction of 20 bridges in the area including, mubuku, bridge along Kasese-Fortportal Road. Both murrum and tarmac roads were damaged cutting off communities and rendering access to different points difficult. This immensely affected the local economy and delivery of social services especially health, water and sanitation and education.
The floods washed away most of the inhabited houses with people’s belongings rendering the communities helpless particularly in Kyarumba, Maliba, Bulembia and Nyamwamba Divisions. Kilembe Mines Hospital, a 200 bed health facility and a main referral hospital was affected with a number of medical equipment and property including 50 housing units for staff destroyed. A number of classroom blocks and sanitary facilities in various schools including Bulembia, Road barrier, Nyamwamba and Kasese Primary Schools were destroyed.

It’s on the basis of the foregoing concerns, urgency and sensitivity of the issues that cabinet approved the Kasese District Disaster Recovery Plan 2014/2015 that spells out measures aimed at recovery of the area focusing on the key affected sectors as well as addressing some of the root causes of river flooding.
The Recovery plan also aims at reducing vulnerabilities and enhancing the resilience of the district and its populace. The recovery plan takes cognizance of the prioritized needs of the affected communities arising out of the local consultations. It will also promote recovery of Kasese District after floods, rebuild and promote business in Kasese, restore people’s livelohoods and to build their resilience to disasters and enhance early warning systems on natural disasters in the district. Cabinet therefore noted the humanitarian challenges caused by flooding in Kasese District in May 2013 and the colossal damages occasioned to varous sectors in the district.

 

It also noted the need to redirect recovery and development of Kasese District through implementation actions in the Recovery Plan and approved the Kasese District Disaster Recovery Plan 2014/2015. Cabinet also directed the Minister of Finance, Planning and Economic Development to frontload the money contained in the budget for FY 2014/15 to various sectors to facilitate the implementation of the critical activities of Kasese District Disaster Recovery Plan 2014/15 to prevent recurrence of floods likely to result from the El-nino rains expected in September 2014.
FOR GODA AND MY COUNTRY

Namayanja Rose Nsereko (MP)
MINISTER OF INFORMATION AND NATIONAL GUIDANCE

Link:

http://www.mediacentre.go.ug/press-release/cabinet-approves-kasese-disaster-recovery-plan-20142015#sthash.Y97ar2IC.dpuf

Uganda: Private Sector Post Budget Concerns FY 2014/2015

PS FY14-15 P1

The main focus of the Private Sector for FY 2014/2015:

  1. Reducing the high cost of doing business to enhance Private Sector Competitiveness.
  2. Stimulate and cause increase in disposable income to help improve local demand so as to stimulate the creation of wealth.
  3. Monitoring and ensure that services are delivered in time and value with money. More importantly a well-coordinated system within Government itself, which can take advantage of supportive partners and resources of the private sector to spur growth.

(Private Sector, 2014)

Private Sector concerns:

They see issues with Infrastructure development, transport, Energy, ICT. The concerns about improving business regulatory climate, also the increasing access to affordable business finance to the agribusiness. Find a new focus for National Growth strategy on export of niche products. Get a new tax regime that is predictable and encourages growth for both production and development processes. A good management model of public resources to follow planned actions and implementation (Private Sector, 2014).

Proposals according with the new Tax measures:

Income Tax: Initial Allowance on capital expenditure on eligible plant and machinery has been removed. With the termination of exemption on the interests income that is on agricultural loans (Private Sector, 2014).

Value Added Tax (VAT):  

The tax is now set on exemptions on certain levels of products. Like feeds for poultry and livestock. It’s also exemption for machinery for agricultural and dairy machinery. There is also lesser tax for packaging materials to both diary and milling industries. Then there is also special tax on specialized vehicles, plant, machinery, services and civil works that is on infrastructure construction, water, education and health (Private Sector, 2014).

They wish a termination of the Zero VAT rate supply:

The products that are not under ordinary VAT is Cereals (grown, milled or produced in Uganda), Processed Milk and Milk products, supply of machinery and tools for agriculture, seeds, fertilizer, pesticides and hoes. This is also for printing services for education materials. They are set VAT of 0 % but the Private Sector wish it to be 18 % (Private Sector, 2014).

PS FY14-15 P5

PS FY14-15 P6

PS FY14-15 P7

PS FY14-15 P8

PS FY14-15 P9

PS FY14-15 P10

PS FY14-15 P11

PS FY14-15 P12

 

After thought to the concerns from the Private Sector on the FY 2014/2015:

To cook this all down, it’s basic Chicago-School of economics. It’s the liberalistic dreamland where everything is free and liberal. That’s where the government stops all subsidies of education and agriculture. It’s the place where the government is a little player on the market – the strong beat the little guy in every instance. It’s fearful that the Private Sector wish to get VAT on Fertilizer, Seeds, Processed Milk and Machinery to the agriculture, pesticides and hoes. This will lead to issues for the struggling farmers of the hinterland and far far away from the streets of the rich Kampala. So therefore when the issues from the Private sector is just to earn simple money and earn on the poor farmer in the districts who can’t pick or choose his tools, fertilizer and seeds. They also mark the difference in between Kenya and Uganda. Even though there similarities between the nations. Still Agricultural business is different. The export from Kenya is in another league. The export of Kenyan coffee is famous compared to the Ugandan beans. The same with the Tea, I say that and I still wished to Garden Tea.

So for me the suggestions from the Private Sector are too silent and will kill the agriculture driven business. The Tourism tax is wise, because that will be used for promotion and marketing. They have good ideas even if they fear for the exemption for the lodging outside of Kampala. When it comes to Education is the removable of exemption of income tax from private schools. Government believes that the exemption will help investments in schools in the greater Kampala areas and also the improvement of education upcountry. This means that the private sector wants to blow this off. It tells that the private sector cares more for profit then the education system. This is also making the state or governments smaller, which usually are the tools of the Chicago-School of economics.

The Government of Uganda should not follow this advice. It will weaken the state and marginalize the structure of it. The ideas from the Public Sector won’t benefit either the public or the state. Both parties might earn a coin of silver dollar in the beginning, but in the long run the crippling of the education and agricultural business will not drive it. The reason why I still publish the document and pieces of it is to show the Public Sector who must be driven the USAID and their powerful basket of money. Views of state and business: Where nothing is to collide between the state and public sector. The dreams of freedom and big business with no power to big government, except a strong police and military. The rest, that can the public can pay for or handle themselves on their own. That’s why they want taxation and VAT on all this items and cut the whole idea of Zero VAT exemptions. That’s totally against their belief system. It’s true I been beating on the government for their lack of payment of their civil servants and teachers. Still, it’s necessary to tax and get sufficient cover for the supposed running of the state and the civil service. Not only monies to the mighty UPDF and UPF. Also not forgetting NSFF.

Peace.

Putin flexing with sanctions on the Western-hemisphere and their reactions to it.

Well, we knew it was coming. We all did who have followed recent events. Putin is a big-man in his own way. He leading his country and does it in his style and fashion. It is understandable that the western-hemisphere is reacting to. They see the action of the Kremlin and Russians as stepping a bit too far, the same does the Russians who seem to think the European involvement in Ukraine. Well, to be honest I am not going to grind directly on the matters of Donetsk, Crimea or separatist or Russian involvement in certain districts of Ukraine. This piece will be about the certain new press releases and their press statements from nations and boards on the matter of new Russian sanctions as counter to the ones set by the EU and Western nations.

Russian Press release on the 6th August:

“Vladimir Putin signed Executive Order On Special Economic Measures to Protect the Russian Federation’s Security” (…)”Russian state bodies of power, federal authorities, local self-government bodies, legal entities established in accordance with Russian law, and physical individuals under Russian jurisdiction shall, in carrying out their activities, respect for a duration of one year following this Executive Order’s entry into force a ban or restriction on foreign economic operations involving the import to Russia of particular kinds of agricultural produce, raw materials and foodstuffs originating in countries that have decided to impose economic sanctions on Russian legal entities and/or physical individuals, or have joined such decisions”(…)” The Russian Federation Government has been given instructions accordingly. In particular, the Government has been instructed to take measures to ensure balanced goods markets and prevent accelerating price rises for agricultural products and foodstuffs; to organise together with regional authorities timely monitoring of goods markets; and act together with associations of goods producers, retailers and organisations to take measures to increase supply of domestic goods” (Kremlin, 2014).

“The Executive Order takes effect upon its signing” (Kremlin, 2014).

Bernama reports that Prime Minister Dmity Medvedev said at a cabinet meeting:

“The current situation as it is, the Russian government is considering a number of retaliatory steps” (…)”I will mention some of them, but that does not mean that they will be introduced at once. The measures include a ban on transit flights by European and US air carriers to Southeast Asia, to the Asia-Pacific Region” (Bernama, 2014)

German response to the sanctions from Russia:

The Federal German government gave its statement. This through deputy government spokesman Christiane Wirtz, here is their statement:

“that the massive presence of troops at the border is not helping de-escalate the situation” (…)”The German government would thus naturally welcome a withdrawal of the Russian troops from the border in this area” (…)”to stabilise and further de-escalate the situation” (…)”The presence of troops in the area is not a step towards making the situation more peaceful” (…)”particularly help bring about the called for de-escalation,” (…)”to do nothing that could further destabilise the situation in Ukraine” (…)”We demand the greatest possible transparency” (…)”The UNHCR does not have any first-hand figures for the number of refugees that have left Ukraine for Russia” (…)”currently no legal basis” (Bundesregierung, 2014).

The EU measures:

  • Imposing an arms embargo
  • Russian state-controlled banks will have it more difficult to get funds in the EU capitol market.
  • Export of Hi-Tech goods and oil equipment stopped.
  • Export of Duel use goods which is used by the Russian Army is stopped.

This is after the second range of sanctions made by the EU on the 28th July from the European Commission.

(Bundesregierung, 2014)

Writz comments on the sanctions:

“that the European Commission does offer assistance for special cases and special situations” (…)”It should surprise nobody that sanctions come at a price – especially those who have for months been declaring that harsh sanctions are a test of the credibility of European politics. The German government is in touch with the German private sector, I have been in contact with businesses since March, so as to keep the consequences to a calculable level at least. It should also be possible to adapt and scale back sanctions if political progress is made in efforts to resolve the conflict”. Frank-Walter Steinmeier comments on the matter as well: “That is why, in spite of all difficulties, we are keeping channels to Russia open” (…)” Experience shows that whoever increases political pressure to convince the other side to negotiate, must himself also be willing to negotiate” (Bundesregierung, 2014).

It needed only less than 24 hours before the world is answering this. The first one I will show is the EU.

Statement by the EU Commission spokesman on the 7th August:

“The European Union regrets the announcement by the Russian Federation of measures which will target imports of food and agricultural products. This announcement is clearly politically motivated. The Commission will assess the measures in question as soon as we have more information as to their full content and extent. We underline that the European Union’s restrictive measures are directly linked with the illegal annexation of Crimea and destabilisation of Ukraine. The European Union remains committed to de-escalating the situation in Ukraine. All should join in this effort. Following full assessment by the Commission of the Russian Federation’s measures, we reserve the right to take action as appropriate” (EU, 2014).

This is not the only appropriate comment have been sent out after the Russians decided to retaliate the measures made by the west. At this point the UK Government had to give a response.

The response comes from the United Kingdom HMG with the Honor Phillip Hammond MP of Department of Environment, Food & Rural Affairs and the Honor of David Lidington MP of Business, Innovation and Skills. Here is what they say:

“Russia has no grounds to impose sanctions and should use its influence with violent Russian-backed separatists to stop destabilising Ukraine” (…)”We have been pushing for a strong and determined international response to Russia’s unacceptable behaviour in Ukraine. We have been clear that we are prepared to play our part and that there will be costs, but this does not diminish our commitment” (…)”Instead of retaliating, Russia should be using its influence with the violent Russian-backed separatists to stop destabilising Ukraine” (…)”We are still considering the impacts of the ban but we do not expect it to have a significant overall effect on our agricultural industry – the affected agricultural exports to Russia account for some 0.2% of our food, feed and drink total agricultural exports” (…)” We will continue to work closely with trade associations and industry to help them monitor the impact of this ban on their business” (UK,2014).

Norwegian counter to the Russians:

Norwegian Foreign minister Børge Brende has also addressed the matter. Børge Brende is saying: “That Russians import embargo is unreasonable. That the Russian goes to this measures show how important that we as allies and partners react to the Russian destabilization of Ukraine. I am agreeing with the EU and the way portray their actions as a political motivated” (…)”We will take the Russian measures seriously, but it’s still early to see the outcome for the Norwegian businesses. We are going through the measures with EU and other who have been targeted. With them are we trying to find the best solution to deal with this” (…)”instead of reduction of the conflict in eastern-Ukraine, instead Russians to uphold it and escalating it. There going significant numbers of arms across the boarders from Russia to Ukraine. It is essential that the Russians will be met with clear and sound reaction from the international community. And out of the regarding the Norwegian state in foreign and security political, we have to stand by our partners and allies” (Regjeringen, 2014).

Lithuanian response to Russia on the 7th August:

President Dalia Grybauskaitė says: “Such reaction from Russia was predictable. But the impact on our economy will not be significant. Lithuania has already gained much experience during the economic blockade in the first years of independence, the crisis, and the last-year sanctions on our carriers and manufacturers of dairy products. Our business already knows how to counter the hostile challenges of our big neighbor. It is able to find new markets and hedge against risks. This makes us even more flexible and strong” (Lithuania, 2014).

Latvian response to the Russia sanctions:  

In another Baltic state Latvia, Prime Minister Aimdota Straujuma has called in for a emergency meeting on the Russian sanctions. The date hasn’t been set yet, but the report says it’s likely to be on Monday the 11th of August. At the meeting they will evaluate and asses the sanction and calculate the result and change it could have on the economy of Latvia (Leta, 2014).

The Finnish response to the Russian sanctions: 

In Finland Prime Minister Alexander Stubb has commented on the matter: “It was to be expected that Russia would respond to the sanctions issued by the EU. The impact of the Russian sanctions on the Finnish economy and Finnish businesses must be carefully examined before the government budget session. I will give a Prime Minister’s announcement to Parliament as soon as it convenes. The measures will affect a number of other EU countries and the Russians themselves, too” (…)”Finland will continue diplomatic efforts to resolve the crisis both with its EU partners and through bilateral means”. The Finnish MP of Agriculture and Forestry Petteri Orpo is saying: “Russia is our food industry’s main export area. Dairy products account for about 87 per cent of our exports to Russia as regards the products on the list of banned imports. We will hold a meeting today at the ministry to discuss measures to minimise the effects of the Russian import ban and to open new export markets”. Lenita Toivakka the MP of European Affairs and Foreign trade says: “I am very concerned about the effects of the Russian retaliatory sanctions on individual companies. I will personally visit the companies that are hit the hardest by the measures” (Finnish, 2014)

After thought:

We can see and I am sure if I did more digging, there would end up more rabbit out of the hat. Because all the ones that are hit by the sanctions would response to it and make sense of it. Therefore we see now that all this governments’ officials and MPs and spokesmen are telling how it is in their area and how they see the whole conflict between Russia and Ukraine. We could dedicate ourselves to see into the difference between and glean the various contexts and how the boarder countries are reacting compared to those who are further away from Moscow. Still, the tone is subtle, and honest. Also, even some seem heartbroken and disgusted by the flexing from Putin. The EU Commission, German Federation, Norway, Lithuania, Latvia, Finnish and UK, I have complied today. I hope you have seen it and gotten something out of it.

Links:

Bernama – ‘Russia Working On Measures To Close Its Airspace To Asia, Pacific-bound Flights’ (07.08.2014) Link: http://www.bernama.com/bernama/v7/wn/newsworld.php?id=1058640

 

Bundesregierung (Federal German Government) – ‘Russia must withdraw troops’ (06.08.2014) Link: http://www.bundesregierung.de/Content/EN/Artikel/2014/08_en/2014-08-06-ukraine-eu-sanktionen_en.html

 

Kremlin – ‘Executive Order on special economic measures to protect Russia’s security’ (06.08.2014) Link: http://eng.kremlin.ru/acts/22780

 

Leta – ‘Emergency government meeting called in connection with Russia sanctions’ (07.08.2014) Link: http://www.leta.lv/eng/home/important/CFEA7FFD-D875-4B81-89E4-C4D173021D14/

 

Lithuania – ‘Kremlin sanctions will hit Russian people’ (07.08.2014) Link: http://www.president.lt/en/press_center/press_releases/kremlin_sanctions_will_hit_russian_people.html

 

Finnish – ‘Government to assess effects of retaliatory sanctions’ (07.08.2014) Link: http://valtioneuvosto.fi/ajankohtaista/tiedotteet/tiedote/en.jsp?toid=2213&c=0&moid=2217&oid=422109

 

Regjeringen – ‘Brende: – Beklager russisk importforbud’ (07.08.14) Link: http://www.regjeringen.no/nb/dep/ud/pressesenter/pressemeldinger/2014/Brende—Beklager-russisk-importforbud.html?id=765590

 

EU – ‘Statement by Commission spokesman on the announcement of measures by the Russian Federation’ (07.08.2014) Link: http://europa.eu/rapid/press-release_STATEMENT-14-249_en.htm?locale=en

 

UK – ‘HMG reaction to Russian sanctions’ (07.08.2014) Link: https://www.gov.uk/government/news/hmg-reaction-to-russian-sanctions

President of Uganda: H.E. Yoweri Kaguta Museveni – State of Nation Adress of 2014.

H.E. Yoweri Kaguta Museveni
President of the Republic of Uganda

Kampala
5th June, 2014

His Excellency the Vice President
Rt. Hon. Speaker of Parliament,
His Lordship The Ag. Chief Justice
Rt. Hon. Prime Minister,
Hon. Ministers,
Hon. Members of Parliament,
The Members of the Diplomatic Corp,
Distinguished Guests,
Ladies and Gentlemen.

Madam Speaker,
In fulfillment of the Constitutional requirement stipulated in article 101 (1) of the Constitution of Uganda, I stand here to deliver the State of the Nation Address, 2014. This is not a mere constitutional ritual as some people may want to perceive it but accountability on particular Government commitments since the last State of the Nation Address.
Madam Speaker, on 12th June 2014 the Minister of Finance, Planning and Economic development will present to this August House and the entire Nation the Budget FY 2014/2015. She will also detail what has been achieved and what we intend to achieve in the coming Financial Year.

The State of the Nation Address I am delivering today, therefore, gives a broader picture concentrating on the basic priority sectors which are: agriculture, industry, services and ICT.

The Ugandan economy continues to be vibrant amidst economic challenges and reforms on the local, regional and International scene.
I keep telling the audiences I address that there are the four sectors for wealth creation and access to employment. Anybody wishing to generate wealth, create self employment, employ others or access employment has no alternative but choose one of these four. The four sectors are: Agriculture, Industry, Services and ICT. 
How are the four sectors performing? Agriculture is in two parts. There is the commercial and plantation farming. The commercial farming still has got challenges such as the high costs of inputs, the under-development of water for agriculture, the low use of fertilizers and poor management skills by the farmers themselves. What is decisive for any enterprise to prosper, apart from the entrepreneur, is the market ─ the buyer. If enough people do not buy from you, you cannot continue to produce. That is why I am always careful to recommend to the farmers only crops and livestock products that have got a big internal, regional and international markets.

The global demand for coffee is 149.1 million bags at the value of US$ 13.6 billion unprocessed and 32 billion processed; the value of tea is US$ 11.4 billion with a total demand of 4 million tonnes; the total value of milk and milk products is US$ 32.8 billion with the total quantities of 730 million tonnes; etc. These are values of these products as materials, not as finished products. The values of finished products of the items above, are as follows: If something has got a low global demand, we should know the consequences of encouraging the farmers to flock into it. Therefore, the leaders and the farmers should know that these products of our agriculture must compete regionally and globally because that is where the big market is. In order to compete, our prices and quality must be competitive. Having looked at the global prices, we should, then, work backwards and see how we can reduce our costs and improve our yields in order to improve our profit margins within the market determined international prices. As a farmer, it is good enough for me that somebody is buying my milk and my beef. At one time, we had nobody buying our milk because the milk being consumed in the towns was coming from outside. We are now dominating the milk sales in Uganda and also exporting to the entire East African region, Nigeria, Mauritius, the Middle East and, also, India and the United States, etc. What I have said is true of bananas, etc. The relevant Government departments must, accordingly, firmly regulate these products. Otherwise, if our quality is compromised, we shall be ruined. We cannot afford a bad reputation within Uganda and outside of poor quality products on account of poor regulation.
As you can see, infrastructure in many parts of the country is improving, such as: the tarmac roads, the electricity, the telephones, etc. I am negotiating with Japan International Co-operation Agency (JICA) to buy Japanese earth-moving equipment for both roads and water excavation on a big scale. Once this deal goes through, it will help us with the roads, water excavation for earth dams and even bush clearing. The Japanese equipment is very good. I have seen its capacity on my own farms. Within our means, we are continuing to roll out the irrigation schemes. Doho Irrigation Rice Scheme has been repaired at the cost of Shs 19.7 billion. Mobuku has also been repaired at the cost of Shs. 19 billion. The Agoro Irrigation Scheme has been completed at the cost of Shs. 27 billion. The rehabilitation of the Olweny Irrigation Scheme will commence in 2014/15 and is estimated to cost a total of 42 billion shillings. The Ministry of Agriculture, working with our brothers and sisters in Kenya, should avail affordable mini-irrigation equipment. Working with Makerere, we are also trying to develop a solar-powered irrigation pump.

The agricultural sector grew by 1.5% per annum this financial year in spite of these challenges. As I keep telling you, the agriculture of Uganda is still handicapped by the 68% of the households that were still in subsistence farming according to the census of 2002. If all these homesteads were converted to commercial farming, the size of agriculture would be much bigger. In the Manifesto of 1996, the NRM put forward a four acres plan for these homesteads that have got that size of land. Using the yardstick of the financial returns per acre per annum and of sufficiently large global demand mentioned above, we recommended the following enterprises: clonal coffee ─ one acre; fruits (oranges, mangoes and pineapples) ─ one acre; bananas or any other food crop (cassava, Irish potatoes or upland rice) ─ one acre; and elephant grass for zero-grazing Friesian cattle ─ one acre. On these, you should add poultry for layers of eggs and pigs as backyard activities. These do not require much land. Those near the swamps should engage in fish farming. Many can participate in apiary for honey. In some areas, they grow tea. With 3 acres of tea, one can get about Ug. Shs 13.5million per annum. In the case of those with less land than the four acres, there is the option of mushroom growing as well as vegetable growing in addition to poultry and piggeries. In the case of the latter two (poultry and piggery), you would use animal food bought from the others. With one room-full of mushrooms, using shelves one on top of the other, you would earn Ug. Shs. 20 million per annum. One acre of onions would give you Shs. 24.8 million per annum; an acre of tomatoes would give you Shs. 14 million per acre per annum; an acre of cabbages would give you Shs. 20 million per acre per annum. The global demand of mushrooms is 3.5 million tonnes, valued at US$10 billion.

The political class, the religious leaders, the cultural leaders and even the peasants themselves have been slow in grasping this issue of enterprise selection for the peasants with small pieces of land and for the need to convert from subsistence farming to commercial farming. The peasants that have woken up to this need, have had the problem of planting materials and breeding materials. NAADS that has been given huge resources to do this, spends most of the Shs. 203 billion we give them each year on salaries and seminars. They only spend Shs. 57 billion on buying materials for plantation and breeding. The rest is spent on salaries and seminars. We are determined to totally restructure NAADS in the coming financial year. Many farmers have woken up. When they get planting and breeding materials, they look after them well, for the majority of cases.

In this financial year, although starting late, I experimented with the deployment of UPDF officers in our former war zones. There are 25 former war-zones. These are: Bumbo; Mayuge; Awere: Atiak; Birembo; Mukono ─ Namugongo; Black bomber (Matugga-Migadde); Mondlane (Kalasa-Makulubita); Lutta (Semuto area); Kabalega (Kapeeka ─Kasiiso area); Nkrumah (Bukomero); Nkrumah (Lwamata); Nkrumah (Kiboga); Nkrumah (Kyenkwanzi); Nkrumah (Kyamusisi); Lutta (Sekanyonyi); Ngoma; Mwanga (Bamunanika); Rwenzori (Kasese); Rwenzori (Kabarole); Rwenzori (Bundibugyo); etc. etc. Using only a total of 9 billion shillings in the two rainy seasons of the last 9 months, the commanders deployed in these areas, have distributed: 11 million seedlings of coffee; 2 million seedlings of tea; 464,137 seedlings of oranges and mangoes and 1,412 tonnes of maize and beans, etc. If the soldiers can do this using so little money, why should NAADS and all those associated with it fail with these hundreds of billions? It is really embarrassing for all those involved. The good news is that the money is there and has been there. It is just a question of getting the right channels for this money to reach the peasant farmers. Above, I have just talked about NAADS money. There is also the money of micro-finance. Every year, we provide Ug. Shs. 16 billion for this. There is also the money of the youth. Every year we provide Shs.32 billion for this. There is money for NUSAF. Every year we provide Shs.53 billions for this. There is PRDP. Every year we provide Ug. Shs. 73.9 billion for this. There is the restocking money. Every year we provide money for this. The problem is not shortage of money. It is the shortage of reliable agents for conveying this money to the people. To show you the scale of this money, if we used only Shs. 100 billion of this money in one year, at a cost of Shs. 310 per coffee seedling including transport, we would plant 322 million new coffee trees of the clonal type ─ far in excess of the 220 million old coffee trees. By just planting new coffee trees, even without expanding the acreage, using the 100 billion shillings which is less than 50% of what we give NAADS each year, with good crop husbandry, our annul coffee production would go from the present 4 million bags of 60 kgs each to, at least, more than 10 million bags. That would make Uganda second only to Brazil in the global coffee production.

I have dwelt on agriculture because it is the sector that is most easily accessible to the majority of Ugandans. Even the ones without land can borrow or rent from the others. It takes a few months form planting to harvesting (18 months for coffee, two months for tomatoes, etc). God has really favoured Africa and, especially, Uganda. However, many Africans are never keen to accept God’s blessings. Within 2 months, 3 months, 4 months, 6 months, 18 months, depending on the crops, a farmer can go from planting to harvesting. Yet, there are challenges such as drought, pests, fungi, etc. However, there is a solution for any of those challenges. We only have to do a bit of sweating. In the Book of Genesis: Chapter 3 verse 19, it says: “By the sweat of your brow, you shall eat bread, till you return to the ground, for out of it you were taken; for you are dust and to dust you will return”.

Having said all that, however, it is necessary to remind ourselves that a modern economy cannot depend on agriculture alone. Gone are the days of the physiocrats in France who believed that all value came from agriculture. Hence, we must go the second sector ─ industries ─ manufacturing ─ big factories and small ones. Industry now employs 841,704 persons. The annual rate of growth of the industrial sector has been 5.6%. With the commissioning of Bujagaali, there has been alleviation of power shortage although the price of electricity is still high. We are determined to provide electricity for manufacturing at 4 US cents per unit whatever the challenges. This is what I agreed with the coffee processor and the new textile manufacturers that are beginning to flock in the country as the factories migrate from China on account of the rising labour costs there. Those who, out of context, agitate for higher salaries should bear this in mind. Uganda cannot miss this round of industrialization for any reason. Apart from industries coming from outside, I want to inform the country that our young scientists, graduating from universities, are happily entering the manufacturing fields. As you could see from the shows in Kumi ─ 8th of March – Women’s Day; ─ Rubaare, Ntungamo ─ 1st of May, Labour Day; and only the other day at Namulanda for the youth, the Ugandan scientists have the knowledge to produce anything from food processing, ceramics, herbal medicine, machine parts, light engineering, wood products, etc. etc. Our scientists at Makerere have already produced electric automobiles and I tasked them to work on solar water pumps. My office has collected all the names of the people involved. We shall fund them using these huge sums of money that go to waste in the hands of all sorts of actors. It is so pleasing to see that Ugandan scientists can manufacture almost anything provided they are funded. With the emphasis we have put on electricity, the roads and the railway, we shall be able to lower the costs of doing business in this economy and, therefore, make our products more competitive.
The third sector ─ services (hotels, transport, banks, professional services, etc) this year grew by 5.6%. With peace, this sector has become very useful in our economy. It employs 2,684,290 persons and accounts for 45.4% of our GDP. Given the uniquely good climate of Uganda, very few countries in the world can compete with us in this area. We only need to control the problems of: corruption, pollution and deforestation. It is only these three that can undermine our unrivalled advantage for services, especially tourism. In the year 2012, Uganda was declared the best tourism destination in the whole world. Between 11th and 16th November, 2014, we are going to host the Conference of the World Association of Tourist Operators. However, when I see, through the window of the plane, the green algae in the water around Entebbe, I do not feel happy. The Minister of the Environment must strive to find ways to stop the following:
(i) The pollutants that go into the lake;
(ii) Cutting forests up to the edge of all lakes;
(iii) Digging on the banks of the River Nile;

It is high time that Ugandans remember and appreciate these precious gifts from God. If they don’t get the care they need and deserve, they can all disappear. We should remember what Jesus said in Mathew 7:6, “don’t give what is holy to the dogs, nor cast your pearls before swine, lest they trample them under their feet, and turn and tear you in pieces.” When we destroy our God given environment, we will be like those pigs.

I must salute the Director of the National Forestry Authority (NFA). It seems he has somewhat woken up. In the recent past, I have flown over Mabira forest, Budongo forest, the forest around Butiiti in Kabarole and Semliki forest. It seems the encroachment has declined. I flew for dozens of minutes over this large area of thick forest. How beautiful it is. Let the Minister of the Environment similarly wake up in respect of the shores of Lake Victoria and the banks of river Nile. Our uniqueness, in the service sector can only be enhanced by protecting these treasures ─ the lakes, the rivers, the mountains, the wetlands and the National Parks.

The ICT sector is growing at 15% annually for last 2 years. It has got capacity to employ many people. The ICT is crucial for communication among people, for data processing and for automation. It is crucial, therefore, for industrial production and communication. It, therefore, will create a lot of jobs. Already about over 1 million persons are employed in the ICT sector both direct and indirect.

In the area of Business Processing Outsourcing (BPOs), we already have 54 companies operating in Uganda and they are employing 4,250 persons. Given that our youth speak English well, a lot more youths can get employed in this sector. This is where an accountant can work for a company in North America and convey the results of his/her work over the internet and be paid. Recently, while in Europe, I discussed with some entrepreneurs that can help us expand this business. It is an area of great potential.

While talking about the industrial sector, I did not talk about minerals. You are aware of the petroleum and gas that we shall be able to start extracting from the ground by 2017. As you may be aware, we have already found 3.5 billion barrels of petroleum in 40% of the potential area. Exploration in the rest of the area is continuing. Our negotiations with the oil companies had delayed because there were contentious clauses, happily, we have agreed with the oil companies on the MOU. We can, therefore, proceed to negotiate on the details. Our crude oil will be used in the refinery to produce final products, part of it will be exported as crude and part of it will be used for electricity generation. The gas will be used for electricity generation and for assisting in extracting the crude. If we have enough quantities of gas, it will be used in steel manufacture, using our huge iron-ore deposits in the Kabale-Kanungu areas and in the Sukuru hills near Tororo. Apart from oil and gas, the government conducted exploration in many part of the country and discovered the following minerals in the following quantities:
(i) Iron-ore – more than 200 million metric tonnes
of proven ore in Kabale and Kanungu areas;

(ii) Phosphates – 230 million metric tonnes of proven
Ore in Sigulu hills, Tororo;

(iii) Cement – more than 300 million tonnes of
Limestone in Karamoja areas in addition to the one in Hima;

(iv) Aluminium clays – more than 3 billion tonnes of
ore in Makuru areas in Bugweri;

(v) Copper – more than 9 million tonnes in
Kilembe areas;

(vi) Cobalt – more than 5.5 million tonnes in
Kisoro areas;

(vii) Wolfram – more than 800,000 tonnes, in some
parts of Kabale;

(viii) Tin – more than 1 million tonnes in
Ruhaama Ntungamo areas;

(ix) Gold – more than 8.2 million ounces in
different parts of the country

(x) Vermiculite – more than 54.9 million tonnes in
some parts of the country;

(xi) Columbite-tantalite (Coltan) 133 million tonnes

(xiv) Rock salt and brine – 22 million tonnes in Katwe and
some parts of the country

(xv) Uranium – in some parts of the country
Pressure is already on for exporting these minerals in unprocessed form. I will never accept these pressures. This is because even the traditional peasants in Uganda have enough economics in their heads to know that when you produce the mbiire (embidde – the bananas for brewing beer), you brew the beer yourself (tonto – Lwaagwa). You do not produce embiire, sell them to your neighbor, who, then, brews the beer and sells it to you. Most of these minerals will be processed here and will also be mixed with other minerals so as to produce intermediate products, such as alloyed steel and, where the economics allows, final products. Uranium, in the medium and long-term, could rescue us in the field of energy. We have a lot of it and nobody is touching it now on my orders. Meanwhile, like we did for petroleum, we have sent out our scientists for more advance training in nuclear physics. They will form a nuclear energy unit in the Ministry of Energy. Uganda does not have a lot of hydro-power even if you add all the sites that are not yet exploited: Kalagala, Isimba, Karuma, Ayago, Murchison falls, Kiba, Korianga, Agago, Muzizi; and over 40 small hydro-power sites. We shall have some more energy from the geo-thermal (may be 1,000 megawatts or there about). Yet a developed Uganda needs a lot energy ─ 50,000 megawatts or more. Where shall we get this level of energy from? If the cost per unit for solar energy goes down, then the solar energy will be the solution. Meanwhile, I prepare the country for the option of the nuclear energy.

Economic Growth Performance:
The composite growth for the whole economy has improved even before the bottlenecks have been removed.
The size of the Ugandan economy is expected to increase to Uganda Shillings 63.329 Trillion, equivalent to US Dollars 25.3 billion. The size of the economy has increased by 5.7% in the current financial year. This Economic Growth rate is comparable to the 5.8% growth achieved in FY2012/13, despite constraints outside Government’s control.
These constraints included unfavorable weather conditions in many parts of the country in the second half of 2013, which negatively impacted agricultural production. In addition, the ongoing instability in South Sudan, which had become one of Uganda’s export destinations, is also a factor impeding faster growth of the economy. Despite these constraints, output growth during FY 2013/14 still represents a strong performance. Growth was largely driven by strong performances in mining and quarrying, cash-crop production, informal manufacturing, wholesale and retail trade. Price Inflation has also remained under control during most of the year and is expected to be 7.9% percent at end of June 2014.

Economic Growth and Welfare:
The economic performance reveals the resilience of the Uganda economy that has resulted from the consistently correct policies of the NRM Government over the last twenty eight years. Consequently, the proportion of people living below the poverty line has further declined from above 56% in 1992 to 24.5% percent in 2009/10; and now to 19.7% in 2012/13. Uganda has, therefore, already surpassed the first MDG target of halving the proportion of the population living in extreme poverty by 2015. Some parts of the country have got even better performance figures. When the other areas catch up, Uganda will enter the Middle Income status.

The share of population with access to electricity, for instance, has risen from under 3% in 1986 to 10% in 2009 to 14% in 2013. In rural areas, the share has risen from 0% to 7% over the same period. The NRM Government has set a target of 40% for electricity access by 2022. Over the next ten years, Government plans to increase access to Electricity in Rural areas to 26% of the total rural households. Similar examples abound in areas such as access to water, Primary, Secondary and Tertiary education; These indicators are therefore not mere talk, but actual reality on the ground.
The above sectors of the economy cannot grow if we do not address the issue of infrastructure ─ the roads, electricity, the railway, the ICT backbone, etc. I am very happy with NRM Members of Parliament (MPs). They have rallied around my long held view that infra-structure development and security are primary. That is why in the budget of 2013/014, Roads and Energy account for Shs.4,186.4 billions and Defence and Security account for Shs 1,048.5 billions. That will remain the orientation of our future plans. We are adding the development of the standard gauge railway from Mombasa-Kampala-Kigali-Juba, working with Kenyan brothers, brothers from South Sudan and from Rwanda as well as our Chinese friends. Low costs of production will attract more manufacturers and service companies. You have already the seen results of this type of prioritization in budgeting. New areas that had no electricity do so now ─ Moroto, Nakapiripirit, Amudat, Otukei, Moyo, Bibia, Bundibugyo, etc. The same has happened with roads.

There is nothing that pleases me more than seeing new tarmac roads ─ especially those done with the Uganda Government money such the nearly finished Kampala –Masaka road, Mbarara-Kikagati, etc.
The other area of emphasis is skills for the youth. Since some time ago, we have been emphasizing that science knowledge and technical skills are crucial. That is why, since August, 2006, we had decided that 70% of Government scholarships for universities will go to science students, however, Cabinet approved 53%. I have been interacting with the youth ─ especially the university graduates. A new awakening is apparent. Three trends are noticeable. Trend one is that science graduates are going into starting manufacturing enterprises in association with others or singly. Trend two is that those who did general arts degrees are going into farming and other enterprises. Trend three is that some of the scientists are being absorbed into the new companies that are opening up. I was most pleased to see the young graduates of electrical engineering running the machines at the new Bujagaali power station.

One of the greatest stimuli for our economy to continue growing the global economic problems notwithstanding, is the regional market. It says in the Book of Galatians chapter 6, verse 7, it says that “whatever a man sows, that is what he will reap”. When a nation has no vision, it perishes, it says in another portion of the Bible. Our emphasis, with our brothers and sisters in the region, on regional integration has paid the Ugandans most handsomely. Uganda exports to the region goods and services to the tune of US$1.36 billions. We also buy from the region goods and services to the tune of US$ 671millions.

Finally, all this would not happen if Uganda was not peaceful. I salute the UPDF, the Uganda Police, the Intelligence services and the vigilance of the population of Uganda for the peace that is prevailing in every corner of Uganda ─ Karamoja included. Everything else depends on this.
In the coming session of Parliament, the Government will present to you for consideration, the following bills:
1. Land Lord Tenant Bill
2. Uganda Land Commission Bill
3. Retirement’s Benefits Liberalization Bill 2013
4. National Legal Aid Bill (2013)
5. Universities and other Tertiary Institution Act (2011) Amendment Bill
6. Physical Activity and Sports (PAS) Bill, 2014
7. Appropriation Bill (2014)
8. The Finance Bill 2014
9. Indigenous and Complimentary Medicine Bill
10. Mental Health Bill
11. National Health Institute Bill
12. Uganda Heart Institute Bill
13. National Health Laboratories Services
14. Toxic Chemical Prohibition & Control Bill
15. Overseas Properties & Immunities Bill
16. Foreign Service Bill
17. Local Government (Amendment)Bill 2014/15
18. Constitution (Amendment) Bill(s)
19. Bills for Amendment of Electoral Laws:
– Presidential Election Act, 2005
– Parliamentary Elections Act 2005
– Electoral Commission Act, Cap 140
– Local Government Act. Cap. 243
– Political Parties and Organizations Act, 2005
20. Geneva Conventions (Amendment) Bill
21. National Legal Aid Bill, 2013

I thank you very much and hope that this was a fruitful session.

5th June, 2014 – UICC, Serena

(thanks to UBC Radio Newshour).