Kakira Sugar Limited addressing farmers strike (02.07.2018)

Mzee complains today about waste, however he haven’t rehabilitated sugar industry or revamped pharmaceutical industry either!

“In this regard, we need to learn and apply lessons from emerging economies such as India, whose total healthcare industry revenue is expected to increase from US$ 110 billion in 2016 to US$ 372 billion in 2022 in response to deliberate investments in telemedicine, manufacturing of medicines and health technologies, medical tourism, health workforce training and risk pooling/health insurance, among others. In order to achieve this, we need to plan in a harmonized way. In Uganda, for instance, we, indeed, have a nascent pharmaceutical industry producing Aids/HIV, Malaria, Hepatitis-B, pharmaceuticals, etc. drugs. These are, however, still using imported pharmaceutical grade starch and imported pharmaceutical grade sugar. The pharmaceutical grade starch and sugar are crucial for making tablets and syrups for children’s medicines. Yet, the starch is from maize and cassava and the pharmaceutical grade sugar is from sugar. I am told the drugs would be 20% cheaper. Moreover, apart from helping in the pharmaceutical industry, more refined sugar is also needed in the soft drinks industry. Uganda is squandering US$34 million per year importing refined sugar for the soft drinks, about US$ 20 million for importing the pharmaceutical grade starches not including the other raw materials, US$ 77million for taking patients to India etc. Africa is incredibly rich but wasteful” (Yoweri Kaguta Museveni at THE OFFICIAL OPENING OF THE JOINT EAC HEADS OF STATE RETREAT ON INFRASTRUCTURE AND HEALTH FINANCING AND DEVELOPMENT, 22.02.2018).

Seems like the 1980s World Bank loans to restart Kakira Sugar Works hasn’t done enough, since the Ugandan state did right after the National Resistance Army takeover of the state. They went into an arrangement with the World Bank getting loans for the company, to restart. That deal was done 8^th March 1988. As the documents said back in 198:

“Uganda currently imports US$15-20 million worth of sugar annually, which ranks second only to petroleum imports. Import substitution through restoration of domestic production capacity is therefore a high priority and eminently justified given the considerable comparative advantage Uganda enjoys as a result of its landlocked situation. Conditions for sugar production at Kakira are highly favorable. Cane growing benefits from excellent soils, good rainfall distribution (requiring only limited sunplementary irrigation) and relatively low levels of inputs of fertilizers and pesticides. The project brings back to the Kakira complex the original owners who have a demonstrated ability to manage sugar operations at Kakira and elsewhere” (SUGAR REHABILITATION PROJECT, 08.03.1988).

Therefore, what the President said today, the Sugar Rehabilitation Project, which was done to stop the heavy imports of sugar and for consumption, has clearly not worked as projected. Since his own state is squandering their resources and not even following the loans to make the project work. That is my take on it. The president of 32 years has clearly mismanaged this and not finished his job. Since he hasn’t been able to rehabilitate the industry.

When it comes to pharmaceutical industry there massive challenges, not just the sugar starch for medicine coverage of the pills. Nevertheless, the whole arrangement, since the technology to operate these machines are imported, as well is the parts. Not only the sugar starch, but also the ingredients are imported too, than you have few companies who has automated manufactures, which makes hard to make medicine on a larger scale. It is also high operation cost, because of use of back-up generators because of blackouts and shortfall of electricity. Because of this, it is expensive to have cold storage of the medicine and have a storage for the final products.

So the Idea from Museveni that it is simple, it is the whole system around it, that makes it more profitable to import ready made medicine, than actually produce it. Even if the added value of production would be there, but with the circumstances put by United Nations Industrial Development Organization, seemingly it is from 2009. However, the state of affairs hasn’t changed that much.

We can really estimate, that the adjustment and the needed organization to pull forward both industries during the years of NRM hasn’t been totally fruitful. If so, why would he complain about the imports of sugar and medicine, when he hasn’t been able to make it function with his 32 years of reign? Someone who has 3 decades, should have the ability and time to find the information, finalize plans and execute as seen fit. That is if he cared about the industries in question and their possible engines for growth and riches of Africa. Nevertheless, he hasn’t cared and haven’t used the time wisely. He has used the time bitching and not acting. That is just the way things is and it isn’t becoming better either.

He could have made sure that the pharmaceutical industry had energy, had the sufficient organization behind it to make the medicine, not only import and assemble certain medicine, he could have made sure the sugar industry was profitable and had the equipment to make the refined sugar used in the pharmaceutical industry. However, both is a lost cause, because it takes money and time. Both, is something he doesn’t have, since the narrative isn’t making him wealthy.

Alas, he we are at the status quo, with a President running for life and complaining about waste. When he has wasted 32 years and not made effort to change it. It is all talk and no fire. Peace.

Looking into the inflation of 1987 as the Sugar prices are rising in today’s Uganda!

“We have had a wonderful collaboration with IMF since 1987. We have managed to control inflation. By controlling inflation, we have succeeded in preserving the people’s earnings” – Yoweri Kaguta Museveni (State House, 2017).

Well, there been many who has set similarities with the inflation and price shocks of the year 1987. The Republic of Uganda has been through their mess before. The government of Uganda and the National Resistance Movement/Army (NRM/A) had just taken power in 1986. This was a year after the coup d‘etat, which brought the NRA into power. President Yoweri Kaguta Museveni in collaboration with International Monetary Fund (IMF), which had agreements and Structural Adjustment Program (SAP), which promoted deregulation and less state control of the economy. This was also put forward to settle inflation and the deficit that the state had.

So, because some has put similarities between 1987 and 2017, as the prices has gone from about 3,000 Uganda Shillings (UGX) in 2016 and 7,000 Uganda Shillings (UGX) in 2017. There is clearly that there was problems in 1987, but whole another level. The Sugar Industry wasn’t established, the economy of Uganda needed export of coffee and this was the sole benefit of foreign currency into the economy.

“Inflation in Uganda is running as high as 200 percent, and low prices to farmers serve as a disincentive to agricultural production in a country of rich soil and mild equatorial climate” (…) “At the center of the debate is the issue of devaluation. In its first year in office, the Government revalued the currency from 5,000 to 1,400 shillings to the dollar, saying that the move would make imports cheaper. But exports have become increasingly expensive. Devaluation Debated. Some hard-line nationalists in Government insist that the cost of devaluation would be devastating. The cost of such imports as sugar, cooking oil and soap would increase significantly, they say, making the average Ugandan even worse off than he is now” (Rule, 1987).

“In 1987 the Uganda shilling was demonetizated during the currency reform and a currency conversion tax at a rate of 30% was imposed to further reduce excessive liquidity in the economy. There was an immediate drop in average inflation from 360.7% in May to about 200% cent in June. However, with the possible fears of complex and drastic currency reform, the premium shot up, representing essentially a portfolio shift to foreign currency, and possible capital flight, and suppressed inflation. The intended aim of the conversion tax, apart from reducing excessive liquidity, was to lend money raised through this tax to the government. This was to finance the budget deficit over a short period, rather than financing it through printing more money. Nonetheless, inflation shot up again within three months mainly due to renewed monetary financing of increased government expenditure, domestic credit expansion by commercial banks to meet coffee financing requirements and financing of the newly launched rural farmers scheme” (Barungi, P: 10-11, 1997)

“Prices for sugar and vegetable oil (both imported goods) increased rapidly in the early part of the year, falling between May and August — replicating the pattern of the premium between the parallel and the official exchange rate. The subsequent fall in sugar prices and stability of cooking oil prices were due to greater official imports. Inflationary pressures on food prices have been aggravated by supply shortages on account of severe transportation problems” (World Bank; P: 36, 1988).

“In October 1986, Mulema was replaced by Dr. Crispus Kiyonga, who has a medical background Kiyonga has a difficult task. The government’s finances are shaky at best. In an attempt to enable Ugandan citizens to purchase imported consumer goods, the government fixes their prices below world prices. This, of course, puts considerable pressure on the government’s finances: for example, in July 1986 the government imported $4.8 million worth of sugar to sell at subsidized prices” (Warnock & Conway, 1999).

Perspective from Kakensa: “Today sugar costs 7000/- per kilo. When Museveni came to power in 1986 each kilo was at 4/-(four shillings). Immediately he came to power he said Ugandan shilling had lost value, in 1987 all money was changed, not only changed but two zeros were cut off to give it value on addition to the 30% levied on each shilling. This means on every 100 shillings, you got 70cents. Those who had 100,000/- got 700/-” (Kakensa Media, 12.05.2017).

We can see there was certain aspects, but the sugar industry now is different. The Sugar factories are now real and the business are now in full affect. While, in 1987 the state needed coffee exports to get funding and foreign currency. The sugar was imported and was put on fixed prices. The inflation back then was because of the crashing economy after the bush-war and the effects of it. The Sugar prices now are rising for different reasons. These reasons are the yields of sugar-cane, the hoarding of sugar and the export of surplus sugar. Also, the production of ethanol and bio-fuel. That was not the situation and context in the past.

Still, history is repeating itself, since the NRM, let the prices run as crazy in the past. The price has gone up a 100% in a years time. Which, means the prices who doubled from 3000 to 7000 Uganda Shillings. This is not a stable and the ones who get hurt is the consumer and Ugandan citizens. Peace.

Reference:

Barungi, Barbara Mbire – ‘EXCHANGE RATE POLICY AND INFLATION: THE CASE OF UGANDA’ (March 1997).

Rule, Sheila – ‘UGANDA, AT PEACE, IS FACING ECONOMIC BATTLES’ (28.01.2017) link:http://www.nytimes.com/1987/01/28/world/uganda-at-peace-is-facing-economic-battles.html

State House Uganda – ‘President commends Uganda – IMF collaboration since 1987’ (27.01.2017) link: http://statehouse.go.ug/media/news/2017/01/27/president-commends-uganda-%E2%80%93-imf-collaboration-1987

Warnock, Frank & Conway, Patrick – ‘Post-Conflict Recovery in Uganda’ (1999)

World Bank – ‘Report No. 7439-UG: Uganda – Towards Stabilization and Economic Recovery’ (29.09.1988)

A look into the rising Sugar prices in Uganda!

I commissioned a state-of-the-art ethanol distillery at Kakira Sugar Factory in Jinja today (Museveni, 23rd January 2017)

There are various of reasons for the rising prices of Sugar and processed sugar in Uganda. This isn’t the first time or last cycle of inflation on the prices of this common commodity. Sugar is common in Uganda for concept of having in it in the chai or the milk tea. To sweeten the milk and the black tea the Ugandans drink. Therefore, the Ugandans are needing and using lots of it on daily basis. It isn’t a luxurious goods, but a daily usage, for ordinary use. It has become staple and is staple together with matooke, cassava, rice and maize flour. This is all seemed as basic for the Ugandan people. Sugar is something very important. Therefore, the rising prices says something is out balance.

The balance have now been lost a year after the election. The prices of goods and food was also rising in 2011, therefore, the Republic had the Walk 2 Work demonstrations. These was demonstrations against the rising food prices, which also meant the sugar at that time went up. The same is happening now. With also on alternative exception, that the producers are not only creating sugar for consumption anymore, but ethanol and bio-fuel. Therefore, the produce and profits are going to export bio-fuel and other products, instead of the sugar that the consumers in Uganda uses. This also is an explanation for the rising prices, as well the added exports to Kenya, where the producers gain more selling it there. Than in Uganda, take a look!

In April 2017 USMA commented:

“Uganda Sugar Manufacturers Association (USMA) says the increase in sugar prices has been prompted by the increase in cost of production and the deprecating shillings against major currencies. The Association’s Chairperson, Jim Kabeho says sugar millers were forced to announce what he called a paltry 4 percent increase on each 50-kilogram bag on ex-factory price. The increase according to Kabeho saw a 50-kilogram bag of sugar trading at one hundred and eighty five thousand shillings up from one hundred and seventy thousand shillings” (…) “Meanwhile a source at the Ministry of Trade Industry and Cooperatives who asked for anonymity says the Ministry suspects that the big players like Kakira could have decided not sell its sugar to the market so as to increase production at the ethanol its ethanol plant. The sources says sugar mills with ethanol plants are finally making money on sugar through on co-generation of power, alcohol and ethanol” (URN, 2017).

In April in Masindi:

“Masindi district leaders have risen up against the Masindi district Resident Commissioner, Godfrey Nyakahuma over stopping sugar cane buyers from buying cane from Masindi district. Last week, Nyakahuma launched an operation of impounding trucks of all sugar cane buyers who buy sugar cane from Kinyara sugar limited out growers and over five trucks loaded with cane were impounded by police” (…) “Byaruhanga added that that is a sign indicating that Kinyara sugar Factory has no capacity to crush the available sugar cane adding that since Uganda has a liberalized economy let everyone come and buy the abundant cane available instead of leaving the farmers suffer with the monopoly of Kinyara sugar factory. Amanyire Joshua the former mayor Masindi municipality said that if Kinyara is saying that sugar cane buyers are poachers, Kinyara sugar factory is a smuggler because it is also doing the same. Mary Mujumura the deputy speaker Masindi district blamed Byaruhanga Moses the presidential advisor on political affairs for failing to advise the president on political issues saying that he is not supposed to enter into business matters” (Gucwaki, 2017).

In May 2017:

“From last year’s average of Shs 3,000 per kilo of sugar, the price shot to Shs 4,000 early this year and is now hovering over Shs 5,500. A kilo of Kinyara sugar is the cheapest at Shs 5000, while Kakira sugar is selling at 6,000 a kilo. On the shelves, Kakira sugar and Lugazi sugar are scarce compared to Kinyara sugar, which is in plenty. Many dealers have now started hoarding sugar in order to benefit from anticipated price hike in the short term” (URN, 2017).

In May 2017 – Stanbic Statement:

“The only category to buck that trend was wholesale & retail, where staff costs rose and employment fell. Average purchasing costs also rose in April, reflecting increased prices for animal feed, food stuffs, raw materials and sugar. Higher cost burdens were passed on to clients, leading to a further increase in output charges” (Stanbic Bank, 2017).

President Museveni praises Kakira Millers:

“I would like to thank the Madhvani Group, despite the disappointment by Idi Amin. The family pioneered the production of sugar in Uganda. By 1972 they were producing 70,000 tons but today they have almost tripled the production to 180,000 tons,” he said. The President was today commissioning a state of the art ethanol distillery at Kakira Sugar Limited in Jinja district. The US$36 million facility, which is the largest in the East African Region, will be producing 20 million litres of ethanol annually” (…) “President Museveni pledged to address the issues to regulate the sugar industry but urged the Madhvanis to partner with farmers with large chunks of land for production of sugar-cane, as the cane is not a high value crop. He said people with small land holdings should be left to do intensive farming like the growing of fruits that give high returns. Turning to the issue of prices payable to sugar-cane out-growers, President Museveni advised the buyers and out-growers to sit together and agree on the prices taking into consideration the market prices globally” (Uganda Media Centre, 2017).

Government statement on the 11^th May:

“Speaking to 256BN on condition of anonymity a government official monitoring the situation said the manufacturers have not increased the factory price, but he conceded that the situation is worrying. “At the factory prices are stable. Why is it that the prices at the retail gate are high. This means that there are some distributors who are using the hiding strategy in order to rob Ugandans. As Government we shall continue monitoring the situation until we come up with the solution” the official said. Affordability of sugar is considered a key barometer of an ordinary person’s well-being and its pricing can take on political dimensions when people cannot have sugar with their tea” (256BusinessNews, 2017).

Putting the price in pespective:

Kakensa Media reported this today: “Today sugar costs 7000/- per kilo. When Museveni came to power in 1986 each kilo was at 4/-(four shillings). Immediately he came to power he said Ugandan shilling had lost value, in 1987 all money was changed, not only changed but two zeros were cut off to give it value on addition to the 30% levied on each shilling. This means on every 100 shillings, you got 70cents. Those who had 100,000/- got 700/-” (Kakensa Media, 12.05.2017).

This is all proof of a systemic malpractice, where both export, together with lacking yields because of drought and also the production of ethanol and bio-fuel. All of this collected together are reasons for the rising prices of sugar. The sugar price goes up because the use of cane for other things than millers producers sugar for consumption, but for other export products. This is all making sure even as the Republic of Uganda has in the past produces to much, it now doesn’t. Since it elaborately uses the sugarcane for other products.

That has made the Madhvani Group rich and their exports of sugarcane products are clearly selling. Now even their basic milled sugar are sold more expensive on the Ugandan market. There are also proven problems by other millers, who either has to much cane like Kinyara Sugar Factor in Masindi. Which is ironical problem, as the Kakira and Lugazi sugar is empty on the shelves, while the sugarcane hoarding Kinyara are still in the shops. But Kakira which is produced by Madhvani Group, we can now understand, since they have bigger operation and is blessed by the President for their industrial production of ethanol and bio-fuel.

Therefore, the are more reasons than just shopkeepers not getting enough stocks. That the rising prices are not only that there is lacking production. It is the system of export and production. Where the cane isn’t only becoming milled sugar for consumption, but for all the expensive industrial exports like bio-fuel and ethanol. This is all good business, but also bad for consumers and citizens who are accustom with decent prices for their sugar. That is not the fact anymore, as the business and millers has found new profitable ways. So that the surplus sugarcane and also the other gains massive profits. This is all good business for the owners of the sugar-millers and sugar industry. The one who feels the pitch is the consumer and the citizens. Who see scarcity of sugar inside the shops and also the inflation of prices on the sugar. Peace.

Reference:

256BusinessNews – ‘Government to issue statement on sugar’ (11.05.2017) link:http://256businessnews.com/government-to-issue-statement-on-sugar/

Gucwaki, Yosam – ‘MASINDI RDC IN TROUBLE OVER STOPPING SUGAR CANE BUYERS’ (28.04.2017) link: http://mknewslink.com/2017/04/28/masindi-rdc-trouble-stopping-sugar-cane-buyers/

Stanbic Bank Uganda – ‘Ugandan economic growth continues at start of second quarter’ (04.05.2017) link: https://www.markiteconomics.com/Survey/PressRelease.mvc/143ca2b8e3d84c79b96aed4885b7337e

URN – ‘Sugar manufacturer’s association explains price hikes’ (14.04.2017) link: https://dispatch.ug/2017/04/14/sugar-manufacturers-association-explains-price-hikes/

URN – ‘Uganda: Sugar Crisis On for Another 2 Years – Manufacturers’ (09.05.2017) link: http://allafrica.com/stories/201705100129.html

Uganda Media Centre – ‘President Praises Madhvani Group’ (05.05.2017) link: https://mediacentre.go.ug/news/president-praises-madhvani-group

EU’s new regulation plans to scrap imports of conflict minerals by 2021!

“The people back home wouldn’t buy a ring if they knew it cost someone else their hand” – Maddy Brown (Blood Diamond, 2006).

The European Union are acting out of care and thinking of transparency for the industrial imports and mineral exporters. This is happening just a little month after the United States opened up their legislation for importing more from conflict zones. While the European Union plans to close the gate from areas and from sources that export Conflict minerals.

So the EU laws are becoming more stricter than the United States, even if the law they have enacted in the European Parliament and Council of the European Union, will be effective from 2021. So it is 4 years until it has giant effect and gives time to refinery and importers to change behavior. Something that is necessary, as well as the public have to grow concern of the affects of buying conflict minerals. Even as the conflict minerals still come into the market of Europe and into the refineries so the consumers doesn’t know and cannot follow where their products who contain minerals comes from war-zones.

That the European Union takes this serious and acts upon this Nobel, and proves that they does not want to support militias and guerrillas that keeps control of mineral rich areas and their exports to supply weapons and continue warfare in for instance the African Great Lakes Region. Take a look!

Background of new rule:

“This Regulation, by controlling trade in minerals from conflict areas, is one of the ways of eliminating the financing of armed groups. The Union’s foreign and development policy action also contributes to fighting local corruption, to the strengthening of borders and to providing training for local populations and their representatives in order to help them highlight abuses” (EU, P: 8, 2017).

Conflict Minerals from Great Lakes Region:

“The Commission and the High Representative of the Union for Foreign Affairs and Security Policy should regularly review their financial assistance to and political commitments with regard to conflict-affected and high-risk areas where tin, tantalum, tungsten and gold are mined, in particular in the African Great Lakes Region, in order to ensure policy coherence, and in order to incentivise and strengthen the respect for good governance, the rule of law and ethical mining” (EU, P: 16, 2017).

Trade of Minerals funds armed conflicts:

“Preventing the profits from the trade in minerals and metals being used to fund armed conflict through due diligence and transparency will promote good governance and sustainable economic development. Therefore, this Regulation incidentally covers areas falling within the Union policy in the field of development cooperation in addition to the predominant area covered which falls under the common commercial policy of the Union” (EU, P:17, 2017).

Important Article:

“Article 3: Compliance of Union importers with supply chain due diligence obligations

1. Union importers of minerals or metals shall comply with the supply chain due diligence obligations set out in this Regulation and shall keep documentation demonstrating their respective compliance with those obligations, including the results of the independent third-party audits” (EU, P: 23, 2017).

Date of Application:

“Articles 1(5), 3(1), 3(2), Articles 4 to 7, Articles 8(6), 8(7), 10(3), 11(1), 11(2), 11(3), 11(4), Articles 12 and 13, Article 16(3), and Article 17 shall apply from 1 January 2021” (EU, P: 51, 2017).

What the statements on the law:

“The Commission will consider making additional legislative proposals targeted at EU companies with products containing tin, tantalum, and tungsten and gold in their supply chain should it conclude that the aggregate efforts of the EU market on the responsible global supply chain of minerals are insufficient to leverage responsible supply behaviour in producer countries, or should it assess that the buy-in of downstream operators that have in place supply chain due diligence systems in line with the OECD guidance is insufficient” (…) “In the exercise of its empowerment to adopt delegated acts pursuant to Article 1(5), the Commission will take due account of the objectives of this Regulation, notably as set out in recitals (1), (7), (10) and (17). In doing so, the Commission will, in particular, consider the specific risks associated with the operation of upstream gold supply chains in conflict affected and high-risk areas and taking into account the position of Union micro and small enterprises importing gold in the EU” (…) “In response to the request of the European Parliament for specific guidelines, the Commission is willing to develop performance indicators specific to the responsible sourcing of conflict minerals. By means of such guidelines, relevant companies with more than 500 employees that are required to disclose non-financial information in conformity with Directive 2014/95/EU would be encouraged to disclose specific information in relation to products containing tin, tantalum, tungsten or gold” (EU, P: 57-58, 2017).

The European Union is doing something positive with this. That they show effort and care for the imports and what affects the export has locally, so if the minerals export is shady, the export will cease. So if the due diligence regulation works and the industry complies, the effect can be enormous. The consumer will also know that there are not supporting by third party purchase to pay for ammunition rebels, warlords or guerrillas in far away lands. This should all be seen as step of making a better world and honorable society. Where the money is where the mouth is! Peace.

Reference:

Council of the European Union – ‘Proposal for a Regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas – Outcome of the European Parliament’s first reading (Strasbourg, 13 to 16 March 2017) – (20.03.2017).

President Trump: “Presidential Memorandum: Suspension of the Conflict Minerals Rule” – Legalizing export of questionable minerals from the DRC!

My letter to Electronics Producers who are responsible for supplying money to militias and guerrillas of the DRC!

Dear Electronic Producers of end-products as Mobile Phones and such, I write to you in haste!

Then I mean the likes of Foxconn of China, Apple, Hitachi, Sanyo, NEC Tokin, Kemet, AVX, Vishay, Flextronics, Celestica Sanmina, Asustek, Jabil, Hewitt-Packard, Dell, Acer, IBM, Samsung, Motorola, Canon and Nokia. Also other suppliers who deliver the needed products for you too label and sell to the global market.  

I write too you with urgency, do you want your names to mentioned in blood, as your greed for the profits are no embedded with warlords and thieves of East Africa, as the exported mineral resources as Coltan, Tin, Tantalum and Tungsten. These minerals are needed in your production to make your phones, your electronics and others.

There been warlords, been warriors and presidents that have looted the Southern and Northern Kivu of Democratic Republic of Congo. They have all used AK-47 and other weapons while taking territories, towns and villages. These are the places, where the militias and guerrillas are raping the woman, burning villages and taking over mines even with child-labor if needed.

All the deaths and wars since the fall of Mobutu Sese Seko in the end of 1990s, where the proxy war of Uganda and Rwanda in the Kivu’s where the mines are; and you have accepted this as you vouch for their armies and their militias taking the area, eating of the minerals, eating the stones and lifting the burden they have to buy ammunition to continue their thieving. The thieving and capturing the miners, destroying and taking the minerals, the minerals you use in your products, the end-products you want to sell to me and the world.

What is the pride of your fiscal profits, knowing you were securing payments, securing buying of small-arms and killings of fellow men and woman, on your watch, on your payment and your production? The initial end-game of Electronic Products is that as long as we know that, the Laptops, Smart-Phone and others are tainted with blood; they are tainted with the operation of warlords.

That cannot be gone away in silence, as long as the President of Rwanda, Uganda and Democratic Republic of Congo, they are all in on it, and enjoy the monies with their proxy armies controlling various mines and different minerals, the issues and stages of exploitation of the Kivu’s.

If more people care, they would be aggravated, they would wonder if there was ways of producing the smart-phones and laptops without the minerals that are fueling the guerrillas and militias of Kivu, which is not extending the reign of Kabila, Kagame and Museveni. They are the reasons for these killings and these groups who extort this violence.

The nonsense non-action, the deliberate assault for these minerals, and your plenty of usage, while knowing where it came from, with the extent of the force that it taken from the ground and into the factories, before sold with pop-song on the local TV-Station with a fancy name and image; that image should be tainted with the knowledge of how the minerals for it came to light of day, with the injustice, the impunity and dissolved society where the fear of violence, reckless warlords, relentless soldiers and murders keeping at bay the illegal logging of minerals of the Kivu’s. That is what the price of the profits.

The brave and Nobel men of the boardrooms of the companies, the men and woman of the PR firms, and the consumers, should be enlighten, should take a stand and we all should try to find ways to absorb and not buy the tainted electronics, or least spread the names of them who take the supply of blood-tainted minerals and make products for profit. That should be stopped, as the killings, the continued presence of militias and guerrillas, they are all been kept and fed by your money. The money you have supplied them, so they can continue to get guns and ammunition.

This money comes from the people, the citizens of the world, they should now and should extend their hands, if they about the atrocities and violence of the Kivu’s. They are serving your profits, the profits made on the guerrillas and militias controlling the mines and exploitations of the provinces with the enriched minerals of the Democratic Republic of Congo. That is what should be known, the silent and sudden killer of it all, the ones that responsible for the presence of modern technology, are militants and guerrillas who are fed on the violence as they export to industries that take it without questions.

It should be questioned and the people should care, the knowledge of these actions should be in the open and spoken more about. Last time the blood-diamonds movie and Leonardo DiCaprio played a reckless man who sold diamonds in Sierra Leone… maybe if they did the same with blood tainted minerals from the DRC, then the world citizens might care and asked for change of policy, but the average man don’t, they just want to enjoy 3G and 4G while surfing to read Tabloid papers and other madness, instead of using their waste opportunities to gain the needed knowledge of the affairs that is happening from afar with the technology at hand.

There is time to question; there are and been more than enough massacres and deaths happening in Beni, in Goma and in Kivu’s for the needed minerals. Time to ask the Electronics Companies and the Suppliers of these minerals to take actions, as their need for this is the reason why the atrocities and killings are happening. They are happing on our watch and with our knowledge. It is time to do something and ask for change, to pressure the DRC Government, to pressure the Electronic producers to use other suppliers if possible and stop fueling their profits into the warlords of East Africa, as they are responsible for their existence, as they are the ones giving them money and plenty to continue to harass and kill their fellow brother and sisters.

Best Regards

The Writer of Minbane

Sanctions on South Sudan Renewed, Panel of Experts Extended, as Security Council Unanimously Adopts Resolution 2271 (2016)

7639th Meeting (AM)

Security Council – Meeting Coverage:

Determining that the situation in South Sudan remained a threat to regional peace and security, the Security Council today renewed until 15 April sanctions — including a travel ban and asset freeze — imposed by resolution 2206 (2015) and directed at those blocking peace in the country.

Unanimously adopting resolution 2271 (2016) under Chapter VII of the United Nations Charter, the Council also decided to extend until 15 May the mandate of the Panel of Experts overseeing the sanctions, with the intention of reviewing the mandate and deciding, no later than 15 April, on its further renewal.

Speaking after adoption of the resolution, Petr V. Iliichev (Russian Federation) said its technical character was a reflection of the lack of unity on the Council regarding the sanctions regime.  At the same time, the text emphasized the importance of resolving the armed conflict in South Sudan.  Responsibility for normalizing the situation in the country rested mainly with the South Sudanese.  They needed time and support.  Excessive sanctions ran the risk of complicating the situation and hardening the positions of the parties to the conflict.  The 15-member body needed to be careful.

David Pressman (United States) said that, while the Council supported the people of South Sudan, the country still had a long way to go.  The Council, which had repeatedly shown a willingness to use targeted sanctions to put pressure on spoilers, needed to work together so as to send the correct signals to the leaders of South Sudan.  New proposals would be considered to stabilize the situation on the ground, stem the flow of arms and encourage compromise.  It was a delicate moment in the peace process, but also a critical moment.  Parties to the conflict had to show progress on implementing the peace agreement.  They were urged to demonstrate, in the coming weeks, a commitment to a peaceful and prosperous future through concrete actions.

The meeting began at 11:31 a.m. and ended at 11:40 a.m.

$50M sugar plant to open in Amuru district (Youtube-Clip)

“A multi billion shilling sugar processing plant in Atiak within the northern district of Amuru, will be commissioned soon” (…)”The USD$50M (UGX 175B) investment will have an installed capacity of 5,000Metric Tons, according to the project managers” (…)”The facility sits on 15,000 hectares of land half of which has now been planted with sugarcane” (NTV-Uganda, 2015).

You want more meat to the barbeque:

Check these blogs:

Here you get certain information about the land-grabs that is vital and pivotal to building of this kind of factory and development in Amuru:

Amuru Land Grab: What is Our’s is Our’s; What is theirs is ours; Whatever is yours, is still ours

Some prequel stuff as well:

Amuru Land Grabbing and MP arrested

Hope you also found this interesting! Peace.

 

United Nations Security Risk Assessment of South Sudan by September 2015

Today is a day where I will discuss and show findings for certain UNMISS report that is from UN Department of Safety and Security (UNDSS) and UN Mission in South Sudan (UNMISS) its numbered: ST/SGB/2007/06. It is the United Nations Security Risk Assessment – South Sudan. It was approved 11^th September 2015! And here are some interesting findings. I think the quotes speak for themselves!

“Following the onset of the conflict in December 2013, UNMISS could not fully perform its mandate given it under Security Council resolution 1996 (2011) because of the security situation and the need to maintain impartiality. Subsequently, Security Council resolution 2155 (2014), 27 May 2014, fundamentally shifted the basis of UNMISS’ mandate from support of the Government in capacity-building in traditional UN peacebuilding areas to four key areas. In the line with the UN Security Council resolution 2223 (2015), UNMISS activities are:

• Protecting the Civilians
• Monitoring and investigating human rights
• The Creation of conditions conducive for humanitarian assistance
• Supporting the implementation of the Cessation of Hostilities Agreement” (UN SRA SS P: 2-3).

“Despite the attacks on the Akobo CSB and the BOR PoC in April 2014, that were more linked with the ethnic based targeting of South Sudanese sheltering within UN premises, generally speaking the UN is not a primary target for hostilities. Moreover, the UN is more often caught in crossfire during armed conflict and access is affected as a result of armed conflict. This will continue to be a risk”(…)“The fact that UNMISS hosts over 166,000 Internally Displaced People (IDP) increases the UN’s operational risk profile and reputation” (…)”PoC sites are volatile with the potential that the high level of tension amongst the IDPs may spill over in violent clashes. Staff members are therefore at a higher risk working within these sites” (UN SRA SS P: 3).

“The armed conflict, which is now in its second year, followed last year’s pattern where the dry season was fighting season enabling forces to take control of vast areas of the country. During the rainy seasons (July-Nov) the roads become impassable curbing direct clashes for the period. Even with the IGAD peace agreement signed in Juba on 26. August 2015, assessment is that the country security situation in 2015/16 will remain unsecure” (UN SRA SS P: 4).

“Currently there is no mainstreaming of Security within the UN activities/ programmes. Therefore, the policy that defines that security needs to be involved at all levels of management to ensure security is considered/ mainstreamed into all the activities or programmes is not applied, specifically in UNMISS” (…)”Maintaining security training would enhance the functional expertise of all international and national staff although programme managers would need to receive training in order to learn the identity inherent and associated risks in a timely manner” (UN SRA SS P: 5).

“Peace Operation: To help implement the mandated tasks, UNMISS will consist of a military component of up to 12,500 troops of all ranks and a police component, including appropriate Formed Police Units, up to 1,323 personell” (UN SRA SS P: 9).

“Humanitarian programme assessments have indicated that, as the violence deepens, the humanitarian needs and risk to aid workers increases. 27 aid workers are presumed to have been killed in South Sudan since December 2013 and over 150 NGO staff are unaccounted for” (…)”In Juba, there have been a growing number of armed attacks against humanitarian compounds” (UN SRA SS P: 10).

“At the height of the conflict large numbers of people split over the borders into neighboring countries seeking refuge in Ethiopia, Uganda, Sudan, Kenya and Abyei; these numbers stand at approximately 510,000 individuals” (UN SRA SS P: 13).

“The increased risk specifically in Malakal and Bentiu would require an increase in the deployment of security staff and expansion of the collective security posture” (…)”As the rains of 2015 began to cut off supply lines, military offensives increasingly used riverine methods of transporting goods and fighters to the frontline. The method of delivery was also being used by humanitarian agencies to transfer large quantities of food to communities in need. In April 2015 a barge convoy hired by UNMISS to carry food and fuel supplies for the base in Malakal was attacked by RPGs and small arms fire , injured four persons. In July the government gave strict warnings that all river transportation should stop, further restricting aid delivery around the country. In September there have also been reported incidents of alleged attack on government owned barges and gunboats in Upper Nile State, the SPLA-io claimed responsibility ahead of verification” (UN SRA SS P: 14-15).

“Since the beginning of the conflict (December 2013) until June 2015, there were a total of 594 security incidents involving IDPs in UNMISS PoC sites. Cases include serious assaults, civil unrest, mob violence, robbery, death threats and harassment, and several locations have also recorded serious disruption to humanitarian operation” (…)”Continued accusations by the government actors or affiliates that the PoC sites are a sanctuary for supporters of the SPLA in Opposition also make the PoC sites a target; this point was actively demonstrated in the attack in the Bor in April 2014 resulting in the death of 55 IDPs within the UNMISS site. Similar incidents have occurred near PoC sites in Juba, Bentiu and Malakal” (…)”An outbreak of cholera started in South Sudan on 18 May 2015 reaching total of 1718 cases [dates 4 September 2015], this rapid spread is largely affecting areas of the state capital Juba and also a separate smaller spread in Bor. One death have been reported at the PoC site in Juba with a total of 76 cases of people who contracted cholera inside the site” (UN SRA SS P: 16).

“UNSMS will have to work much closer with the GoSS security agencies to ensure an improved  security response to UN security related incidences” (…)”In Juba a “blue zone” was implemented to manage the locations which were approved by UN security for International UN staff to reside in based on accessibility to the area, crime rates and distance to UN base in case of relocation and emergencies” (…)”Where the UN has a presence Operational Zones have been created where security clearances are not required in all main urban areas to allow for improved access. This approach is underscore by risk management as opposed to a risk adverse approach, this concept needs to be maintained and where possible further enhanced or monitored” (UN SRA SS P: 17).

“The disruption in oil revenues and devaluation of the currency as a result of the fighting has had a detrimental effect on the already weakened economy; government, civil servants, armed forces and police are having their salaries delayed. The breakdown in social infrastructure has reduced employment opportunities; creating desperation which has translated into crime” (…)”For example, the on-going cattle raiding and inter-clan revenge clashes that has been served in retaliation have devastated Lake States” (…)”Government officials have sometimes exacerbated tense situations with alienating remarks on their perception of the UN, often with accusations that the UN is favoring one side over the other within the conflict itself” (UN SRA SS P: 19).

“Animosity grew when the government made accusations that the UN was harboring rebels within its Protection of Civilian (POC) sites. Direct and veiled threats to attack POCs became widespread” (…)”The effect of this was in April 2014 when “armed youth” attacked the UNMISS base in Bor resulting in the deaths of 55 IDPs and injuring many others including UN peacekeepers” (…)”On 26 August 2014 under suspicious circumstances a UN contracted helicopter crashed near Bentiu in Unity State, killing three (3) aircrew and injuring one (1) other underlining the threats involved in working within South Sudan. Investigations into the cause of the crash were inconclusive” (…)”In the middle July 2015 there are approximately 166,142 people saying in seven (7) UNMISS bases (UN SRA SS P: 20).

“There is also notable internal political  friction between the Central Government and the Equatoria States who have been calling for the greater autonomy via a federal government system. This has lead to local Equatorian communities feeling threatened and evacuating their families from the area” (…)”In Jonglei state” (…)” During rainy season in 2014 there were major skirmishes between the SPLA and SPLA-io reported in Jonglei. The SPLA-io has continued to threaten to fire upon aircraft flying in the areas, which were seven of the eleven counties during this period; the last threat was on 17 July 2014” Upper Nile” (…)”Several major clashes between the SPLA and SPLA-io have occurred; during one heavy exchange some stray bullets entered the UNMISS camp killing and injuring IDPs and causing structural damage to UN resources. All UN personnel remain concentrated in UNMISS camp including several agencies who had to abandon their own compounds” (…)”Unity State” (…)”To the west of Bentiu, UN staff previously based in the former Mayom UNMISS County Support Base (CSB) regularly were “caught in cross fire” incidents when the parties to conflict attempted to take control of the strategically important town, which is principally inhabited by Bul Nuer. UN Mission and Agencies Funds and Programme (AFP) staffs have become the target with regular ambushes, the demand for their trucks, and/or fuel and the forceful attempt to board UN flight by military” (UN SRA SS P: 22). “Also in the Upper Nile UNICEF reports that 89 boys were forcibly recruited by an unnamed armed group in late February 2015. They were takin in an area currently under government control, which is defended by government-allied Shilluk militia commanded by Maj Gen Johnson Olony” (…)”There are reports of an LRA attack in Western Equatoria State in March 2015 when one person was killed, the village was looted and eleven people were abducted but four were later released. This resuming of LRA attacks has increased fear amongst the population as the last attack in the 2012” (UN SRA SS P: 23).

“The oil pipelines exit South Sudan in both Unity and Upper Nile State, oil is refined in Sudan before being exported. The potential loss of oil revenues affects both nations so good trade relations’ remains key to maintaining income” (UN SRA SS P: 23).

“Currently the flow of refugees is affecting both countries as fighting affects the communities and so they move on, in Sudan the fighting in South Kordofan has created an influx of refugees into South Sudan and the fighting in northern Unity State in South Sudan has meant many refugees travelled north to refugee sites within Sudan” (…)”Cross border grazing & migration rights also areas of dispute as they host well-armed Sudanese Misseriya cattle herders who move around South Sudan in search of feed for their animals” (UN SRA SS P: 24).

“South Sudan lacks an adequate air traffic control system, countrywide. The government took control of the country’s airspace from Sudan in 2011, but to date has not issued any “Notice to Airmen” (NOTAMs), There are areas, however, that the government has declared a “no fly zone” (i.e. over the Presidential Palace in Juba), suggesting that the government reserve the right to fire upon an aircraft that violates this airspace” (UN SRA SS P: 25).

“Use of the River Nile for transportation of UN supplies and fuel has proved difficult with the government threat against all river travel by humanitarian agencies. With military supply vessels regularly travelling the river to the frontline it is not a safe option for delivery of humanitarian provisions” (UN SRA SS P: 26).

“Communicable diseases in South Sudan constitute a major cause of morbidity and morality largely due to the limited access to clean water and sanitation being extremely poor with open defection rates, which reaches 60% in urban areas and 80% in rural areas” (UN SRA SS P: 29).

“In regards to infrastructure, the entire country remains underdeveloped. Road and air mobility is seriously jeopardized especially during the rainy season where whole regions are cut off. Electricity, food and clean water supplies are scarce and seriously impact UN operations in remote duty stations” (…)”Due to poor road conditions in both dry and rainy season and lack of infrastructure there is a heavy reliance on UNMISS and UNHAS air assets for the delivery of humanitarian aid” (UN SRA SS P: 30).

“The existing EU sanctions delivered in July 2014 had little impact on the de-escalating of the crisis, however further extensive UN sanctions were delivered in a tough UN Security Council Resolution on the 3 March 2015, the decision affects individuals through the freezing of their bank accounts and travel bans will affect all players who do not work towards peace and security. There is also an African Union (AU) report which has investigated human rights abuses last dry season which is completed but yet to be published” (UN SRA SS P: 41).

“There is an increase of visible signs of South Sudan being a failing state: there is no free media, intimidation, by government security is commonplace, economy close to collapse and lack of provision or accountability of the civilian population by the state with most funds diverted to fund the war effort. Law and order is collapsing too, in some states wages have been stolen or simply delayed for months on end, in urban area reports of police becoming active criminals, local courts do not function and reports that crimes are committed due to perpetrators acting with impunity” (…)”Large numbers of IDPs rely on the security of UNMISS peacekeeping forces for their protection, however crowd control measures can never maintain order if the IDPs turn on their protector if the tensions rise inside the confines of the POC sites, the numbers are simply overwhelming” (UN SRA SS P: 42).

Afterthought:
It is all worrying even with the Peace Agreement between the SPLA/M and SPLA-IO which signed a deal with amendments and tokens taken off. The worrying path is the records and analyses that the UN and UNMISS is delivering in this report. The numbers of people that are fleeing from South Kordofan in Sudan and the ones fleeing South Sudan to neighboring countries like Ethiopia, Uganda and DRC is massive! Should be worrying and the way the air-space is not secured. Also the reports on how the seasons are changing and making it difficult to spread necessities like food through air should be seen as a GIANT sign that something has to change. Infrastructure that is gone during rainy season and the air-drops has to happen for no open roads. River Nile isn’t safe and is in the front-line and dangerous travel with transportation of necessities though that path.

There are the issues with the skirmishes in different areas and also military assaults in the various states. Both between SPLA and SPLA-IO but they are not alone. There other military groups making it worse, also the report of even LRA has done damage in the country. Those also innocent children have been abducted and all the weakness of the security issues together with the fractions inside the SPLA making the reports and data on the ground more worrying.

On top of it all the sanctions that has been put on the Government of South Sudan and it hasn’t hit the ground running, but been useless and if it does anything it’s been just a certain individuals that has lost bank accounts, but it hasn’t stopped the fighting or stopped small-arms coming to the country!

There is so much more I could have put into ink and discussed because its powerful to see what the UNMISS is writing and discussing in the report. I have taken what I seen as main issues and fresh insights. I am sure somebody else would have taken more of the context and background into it, but that you can read somewhere else. Peace!

Reference:

United Nations Security Risk Assessment South Sudan – September 2015 – UN Department of Safety and Security (UNDSS) & UN Mission in South Sudan (UNMISS) – Approved 11. September 2015 – (Given out 15.09.2015)