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Archive for the tag “Land Grab”

Milton Obote Foundation: Press Statement – “Termination of Membership of Hon. J.M. Akena” (26.10.2017)

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Opinion: Mzee continues to be hostile to any voice, but himself!

I have come here,(Buddu FM) mainly to undo the lies peddled by unscrupulous people on radio stations” (…) I have been polite, but when time comes I will get hard at people who spread lies about the government” (…) “The reason why am here is to detoxicate because many people having been poisoning the public with false information” – Yoweri Kaguta Museveni on Radio Buddu (09.09.2017).

President Museveni had yet another radio show explaining his plans with the Land Amendments and Constitutional Change. As his party and his henchmen has blocked Besigye to do the same. Therefore, National Resistance Movement (NRM) is clearing the air for the President. So when he does that, he should spring some enlightenment, instead he is attack the opposition and the other radio stations.

President Museveni could have told why he and his cronies were blocking Besigye from different radio stations, while he was on his own. Also, why Museveni at the same time stopped an on-air talk-show. Instead, days after he is grasping for air and assaulting them. Mzee, never liked opposition or visions who is not his own. Museveni and NRM have never really been about Multi-Party Democracy or visions for governance.

I am not surprised that Museveni is attacking the opposition and other media for questioning his vision. That has always been lies, since he is the truth-teller who has never told a little lie. He was supposed to step-down twice, he said once Presidents was not supposed to overstay in power. There are countless of lies in the over 30 years in charge. So when he says other people’s lies, he is throwing stones in a glass-house.

Also, when he warns media of having other voices than his. He proves his megalomaniac and controlling sense. Museveni and NRM are the only one for him. Mzee wanted to crush the opposition after the General Election of 2016. The President will really silence the media for his sake, therefore the Amendment cannot be that great if he has to warn the media.

That is automatically lies, since he has to use time for a Radio Campaign to muster support. Mzee is really on thin-ice dancing with the stars, when he has to muster threats instead of policy. When he has to silence and shuffle his deceptions to the airwaves. He spoke afterwards of that, but who cares when he goes all anti-mode and all in to win. It doesn’t matter what sorts of words he says, since he has already put distrust to any voice other than his.

I don’t believe a single word Museveni says, but that is because of decades of deceptions and play the facade. You are naive if you believe this man. President Museveni has used all tricks in the book. The Constitutional Amendment are only out for one thing: Make it easier for the government to take titles and land. So this is to sell-off land to investors and cronies, so they can short-change the public. That is the story the President will not tell. Therefore, what I am writing is a lie and also whatever “what-his-face” is saying on the radio whose not the President. Peace.

Opinion: NRM are cowards for blocking Besigye’s radio campaign!

Just as the President Yoweri Kaguta Museveni stopped his national radio trip for traveling abroad for a conference of some kind. The Opposition leader and the People’s President Dr. Kizza Besigye was planning of having his own radio campaign to counter the peddling lies of the President concerning the Land Amendment.

Because the Forum for Democratic Change (FDC) are questioning the motives of the Constitutional Amendment and the possible land-grab. That will hurt to be listening to in the villages. That is why the Amuru land-grab has hurt the plans of the government and their sugar factory agreement with the foreign investors. Clearly, Besigye speaking ill of it will bend the lies and mask of the government. This is something the National Resistance Movement (NRM) and Museveni cannot deflect. Therefore, even as Besigye had paid Voice of Kigezi or 89.5 FM – The Trumpet, we’re paid 1,000,000 million shillings for participating in a talk-show on the radio. This one time payment was paid on 8th September , as the show was scheduled yesterday. But the Radio was blocked by the government to air it. The same radio station that hosted the President on the 4th September. But when Besigye tries on the 8th September its blocked. What childish play by the government!

You know your speeches and arguments are weak tea, when you cannot be disowned or having other organizations question your actions. Your know your attempt of change of laws is disgusting, when the opposition cannot question it on air. Another radio station Besigye was blocked from was the Kabale Radio station, 94.7 FM Freedom Radio. To this radio station Besigye paid 500,000 shillings. So half million shillings for the time, that he couldn’t use. So Besigye has paid two radio station 1,5 millions shillings, but we’re blocked by both. The Mbarara and Kabale based stations.

That Museveni and NRM are cowards, that he has to continue with foul-play is just proving his belittling of fellow citizens. It’s just like NRM can have rallies and demonstrations for the Article 102 Amendment in Arua, but if the FDC would have a counter demonstration, they would be arrested, detained and blocked for doing so. The Police would use the Public Order Management Act, even as the Opposition had informed and notice as by law. Still, the Police would interfere and shut it down. But the NRM and NRM Youth can walk the street with banners and demonstrate for the cause.

The same is now shown with radio campaign of Museveni, but when Besigye tries to do the same. He is blocked. Its cowardice and show how little margin of error there is for others, but Museveni is the royal king who can do as he wants. Museveni can put shackles on anyone, but he can do as he pleases. No boundaries for the misuse of power, as he uses it by any means. Peace.

Opinion: President Museveni Defense of the Land Amendment is to be calling out the ones against it – ENEMIES!

The man who wants to sensitize and usually talk about the Republic as one, the Ugandan Republic. President Yoweri Kaguta Museveni on this Radio Campaign to defend and promote the Constitutional Amendment on Land Reform. The first interview has no showed his true character, since he is calling the ones who disagree enemies. He cannot manage to come with sufficient arguments to defend it. Like the issues inside Uganda will not be solved this. This here is not made for development of infrastructure or industrialization. The ability to grab land and without the issues they have today with the titles.

That is why the land titles and deeds are so important. The Republic should make it hard to take land, since this can be conned away from the villagers and citizens in general. Because the state made arrangements with investors and plantation owners. That is what most likely will happen. Because that is what President Museveni has done and tried to do as long his been the Executive of Uganda.

Just read the quotes from radio interview yesterday.

Favorable quotes from the Radio Show on Voice of Kigezi FM:

We are the only country in the region and may be in the world, who legislated to give land to the people; otherwise elsewhere, land belongs to government” (…) “The challenge that the government has is land owners who reject government compensation and run to court thereby making government projects stall. I even wonder what these liars mean by “government grabbing people’s land” and Ugandans must know these liars as their enemies and enemies of Uganda because they are against the development of the country” (…) “They are the same people who talk of unemployment amongst the youth but go on to frustrate government projects such as those in the energy and transport sectors that provide incentives for investment. They even frustrate investors directly as you are aware of the Amuru sugar project that has stalled for 6 years due to the same people” (…) “We need mass industrialisation to develop our country but these saboteurs continue to frustrate investors. I call upon all Ugandans to rise up against these people who are enemies of Uganda” (…) “We even risk denting our country’s image internationally and being isolated because of the character of these people. We have to expose and shun them; otherwise the rest of the world will misunderstand us” (Museveni, 2017).

The President, the government and his cronies will clearly find ways to spoil it. The National Resistance Movement (NRM) and the President will use the Land Amendment to make sure the projects and developments benefiting them will appear. President Museveni have to call the ones who stand against him “enemies”. He must surely dislike Mama Mabira, but she has switched to his team, so “no”.

This amendment will not create industrialization, the land issue will be more dire. Since this gives more power to the state. The state will overpower the citizens, the land can be taken away from them. President Museveni has no issue pushing this, because the earnings of profits and taking the land from the citizens will benefit the President and the NRM. This will not be for the greater good, it will be used as pawns for the citizens, that is why the ones who stand against it is enemies. They are not opposition, but enemies, because he fears the ones who oppose it.

The President should discuss it with manners, but he doesn’t, President Museveni has to address the ones who are disagreeing with him, as enemies. That is just proving his lack of thinking of democratic ideas and spirit, but he wanted to get rid of opposition parties after the recent elections. It fits with his modus operandi.

But that the ones standing in his way, are ENEMIES. Set worrying signs, they are not fellow peers, they are not of another opinion, but enemies. The warfare and bush-war spirit is still alive, because he has rig and cheat to win elections. He wouldn’t win in a fair fight. That is something the President knows. President Museveni should discuss the Constitutional Amendment with just words, not like this. However, the old man doesn’t know better or cannot change his character. Peace.

Reference:

Yoweri Kaguta Museveni – ‘President Museveni explains his radio land campaign’ (05.09.2017) link: https://www.yowerikmuseveni.com/president-museveni-explains-his-radio-land-campaign

President Museveni on Radio-Tour to explain either [Land Amendment] or (Land Grab) 101!

In the coming days near you, if you listen to the radio-channels of Voice of Kigezi, Radio West, Voice of Tooro ,Spice FM, Point FM and Radio Buddu. From today at 19:00 Uganda Time, the radio will filled with reasoning of Mr. President, His Excellency President Yoweri Kaguta Museveni. Who for the moment are still trying to figure out a way of spoiling his own age and birthday, but that is for another day.

Right now he is on a quest to prove the validity and reasoning behind the Land Amendment in the 10th Parliament. The reason for the government sudden need to take more power and have the capacity to take land away from the current landowners and titles from the locals. That without following the current provisions and compensations for land. Because that is hassle, the state needs it for cheap. That is why the President will go on tour explaining, the brilliant legal scholar of Kahinda Otafiire and his minions. So that the people who listens will understand, that the reasonable theft of their livelihood is for the common good and that is just to follow the Don, follow the President no matter what. Here is the amendment in question!

“Amendment of Article 26:

“(3) Where the owner of property or any person having any interest in or right over property objects to the compensation awarded under a law made under clause (2Xb), the Government or local government shall deposit with court for the property owner or any person having any interest in or right over the property, the compensation awarded for the property, and the Government or local government shall take possession of the property pending determination by the court of any dispute relating to the compensation” (Otafiire, 2017).

“(4) The owner of property or person having any interest in or right over the property shall have a right to access the compensation deposited with the court referred to in clause (3),at any time during the determination of the dispute” (Otafiire, 2017).

“(5) Parliament shall, by law, prescribe the time within which any dispute referred to in clause (3) shall be determined” (Otafiire, 2017).

This provision of the law is not to make it better, by law it makes the state more powerful and the frugal mind can possess the land and develop on it. They will take the laws in their hands and make sure the developers get easier access, without having to make sure the facilitation or the boundaries are kept, in this spirit this quick transition is made for less transparent system and for more land grabbing in the hands of cronyism and of the state. This will only benefit the elite and the ones who wants to build sugar factories and plantations, without having to care for the locals, who has been living on the land for generations.

The speeches and his words, better be stellar, his lies better be sufficient and his stamina, better be top notch. Since, the way he will explain this otherwise, will be disastrous, since in the grand scheme of things. This is taking the hand that feeds districts and beating them with a stick. He better, come with some sort of play and some sort of argument that makes cow shit, look like chocolate. Because that what he needed be. Nothing else, just which, he needs to sprinkle the cow-shit and call it hot-fudge sundae. There is nothing else to do. Peace.

 

Reference:

Otafiire, Kahinda – ‘Constitutional Amendment Bill of 2017’ – 08.06.2017 – Uganda Gazette No. 33, Volume CX, Bill Supplement No. 7

Opinion: Akena are officially a NRM-Stooge, as he was heckled defending the Land Amendment!

You know that the Uganda People’s Congress (UPC) are losing its value, when the leader of the Party is heckled in Lira. This is after the proposed agreement between UPC and National Resistance Movement, that have led to UPC Ministers in the growing cabinet of the 10th Parliament. Where even the wife Betty Amogi proposing and working for the constitutional amendment, who gives the state easier access to land. Because of this, UPC Leader Jimmy Akena has tried to promote the Land Amendment, but wasn’t meet with love.

As Mr Akena was trying to explain the merits of the amendment, hundreds of people who felt the area legislator was not making sense in his presentation shouted him down. “If we do not want to listen, I can sit down. I will sit but you give me this one minute…If you ignore [to understand] what is existing, you are not going to help yourselves,” Mr Akena said. The former Otuke District councillor, Ms Dina Bua, said it was “useless” to give Mr Akena more opportunity to talk about land matters. Mr Akena said: “I have heard somebody saying that this law is not relevant. This is the law of the land today.” (Oketch, 2017).

This here is the proof of the fall of the UPC. When Akena, the leader who ousted Olara Otunnu, are now heckled in Lira. Certainly, he sees now how the people understand the newly proposed law. That will make the land more accessible for the government to takeover. Akena are now really a stooge of the NRM. He is under the umbrella of UPC, but that is just convenient. Still, his acts and his words could have been ordered and sanctioned by Museveni.

There is now no difference between the NRM and UPC now, I called them a few months ago NRM-Lite, but that was to soft. They are far-stretched organization connected with the NRM and following the NRM way right now. Sounding and acting alike, there is not really different between Akena and Museveni, the only difference are the NRM are running it all from the State House. Akena are now trying to show his loyalty and making sure NRM see the need for him. Peace.

Reference:

Oketch, Bill – ‘MP Akena booed during debate on land amendment bill’ (14.07.2017) link:http://www.monitor.co.ug/News/National/MP-Akena-debate-land-amendment-bill-Lango-Obote/688334-4056988-9ieqj1/index.html

This is what the Constitutional Amendment Bill of 2017 do: It makes it easier for the State to grab land!

The Constitutional Amendment Bill has been criticized and created worry, since the National Resistance Movement (NRM) have worked for and to get their leader to stay in charge and executive as long as he pleases. That is the President Yoweri Kaguta Museveni. So the article 102 (b) could easily been seen as possible change to fit the life and the age of the aging President. Instead, the gazetted bill of retired Major General Kahinda Otafiire is about making it easier for the state to compensate and take land from civilians. Since they want to make more cheap and make it legal to take land. If so make it easier to settle in court. This is clearly making the road development and pipeline building cheaper, also giving the government more power. Just by looking at the text from the government. Take a look!

The purpose of the Bill is to resolve the current problem of delayed implementation of Government infrastructure and investment projects due to disputes arising out of the compulsory land acquisition process. The problem of delayed Government projects has caused significant financial loss to the Government amounting to millions of dollars in penalties paid to road contractors for redundant machinery at construction or project sites as the courts attempt to resolve the disputes, most of which relate to quantum of compensation” (Otafiire, 2017).

Original Article 26:

26. Protection from deprivation of property.

(1) Every person has a right to own property either individually or in association with others.

(2) No person shall be compulsorily deprived of property or any interest in or right over property of any description except where the following conditions are satisfied—

(a) the taking of possession or acquisition is necessary for public use or in the interest of defence, public safety, public order, public morality or public health; and

(b) the compulsory taking of possession or acquisition of property is made under a law which makes provision for—

(i) prompt payment of fair and adequate compensation, prior to the taking of possession or acquisition of the property; and

(ii) a right of access to a court of law by any person who has an interest or right over the property” (Constitution of 8th October 1995)

Amendment of Article 26:

(3) Where the owner of property or any person having any interest in or right over property objects to the compensation awarded under a law made under clause (2Xb), the Government or local government shall deposit with court for the property owner or any person having any interest in or right over the property, the compensation awarded for the property, and the Government or local government shall take possession of the property pending determination by the court of any dispute relating to the compensation” (Otafiire, 2017).

(4) The owner of property or person having any interest in or right over the property shall have a right to access the compensation deposited with the court referred to in clause (3),at any time during the determination of the dispute” (Otafiire, 2017).

(5) Parliament shall, by law, prescribe the time within which any dispute referred to in clause (3) shall be determined” (Otafiire, 2017).

So now the part of the article 2 (b) was already giving the citizens and land owners set of rights, but not telling how the procedure for compensation for possible value of the land and neither loss of possible costs of moving. The new part of article 26, is about giving the courts rights to find compensation and awards to fellow citizens property.

What is new is even as the pending award and compensation to the land owner, the government still has right to take possession of the land. Which means the government even if the land owner or the one who has the title of the land has to move before the case is settled in courts. This means that the government can cease the land and later pay the people who lives on the land. So if the state and need to build infrastructure or any other project, they can take possession of the land and pay-off the ones living there later.

The Parliament can put a time-table for the possible ending of land dispute, but the possession is already cleared by the state. Therefore, the loss of possession and pending time depends. The real issue isn’t only the dispute, but no consideration of the loss of title, livelihood or even the possible all other costs like moving to another property or housing. This should have been taken in consideration when writing new standards. This one only gives positives to the state, but the citizens and owners of land titles get the hurt.

It is easy to see the Republic/State are the ones winning with the change of article 26 in the constitution not the citizens. The changes of the law is only to benefit the state and the ones acting by orders of the state, not for the citizens. This should be itself worrying as there are no part that is positive for the citizens in the amendment. The land can be possessed and has to wait for the time-table put forward by the Parliament and within that time while the dispute happening hopefully get compensated. Clearly, this is only giving more powers to the state, while taking away the total ownership of land. Since the state can possibly take possession and pay the title-owner later. Peace.

Reference:

Otafiire, Kahinda – ‘Constitutional Amendment Bill of 2017’ – 08.06.2017 – Uganda Gazette No. 33, Volume CX, Bill Supplement No. 7

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 11th 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

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