President Museveni letter to PM Ruhakana Rugunda – “Re: Existence of a “Sugar Board” in Kampala” (19.08.2018)
I write what I like.
“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 8th 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.
Well, when the news broke that the Federal Bureau of Investigations (FBI) of the United States of America, actually had a case implicating a “Ugandan Scheme” involving Honourable Sam Kahamba Kutesa, the current Minister of Foreign Affairs and previous President of the United Nations General Assembly. So clearly, even with all of these titles it is not enough for the brother-in-law to the President Museveni. As he wants more funds and more money without any consideration of the implications behind it.
The recent developments shouldn’t shock anyone. Kutesa has been in the rear-view of the corruption for decades, sometimes riding on a red-light for long, you wonder when the car was about crash into something. He has been walking on the edge and proves again to use his title and status, to again bribe and soliciting money without have proper guidelines behind it. So that the “investor” actually corrupted to get better deals in Uganda. It happen within 2016, but Kutesa has done similar within the energy and oil industry in 2012 and it goes beyond that too. Therefore, the breaking news this week, is that the U.S. Court are implicating Kutesa. Not that Kutesa is corrupt, that is open non-secret for the ones following Ugandan politics. Therefore, Kutesa or Kuteesa himself are part of an untouchable group of people, that has even been reflected upon in the past. Just take a look at the information, that fits the paradigm of what the FBI is investigating these days.
“Allegedly, there is an established cartel of untouchable individuals whose business is the president and who use his name to seek business opportunities for their gratification while at the same time seeking to perpetuate the regime that provides them with the opportunity to enrich themselves. A list that includes some of the president’s relatives and close friends would include, Sam Kuteesa, Salim Saleh, Odrek Rwabwogo (who is married to one of the president’s daughters), Moses Byaruhanga (who is married to a relative of the first lady), Bob Kabonero (the proprietor of Kampala casino), Haji Habib Kagimu (a business man and close friend to President Qadaffi), Noble Mayonbo, Jim Muhwezi and a few others. These people practically decide what to do, and then the president calls in the ministers to sign. These people constitute part of the group that is commonly referred to as the kitchen cabinet. It could actually be possible to do a power mapping in Uganda that identifies the power brokers in the country. (Interview with the Director for Economic Affairs at ISO, Mr. Cheeye, October 2005)” (Amundsen, 2006).
ENHAS Part I:
“For example, Museveni refused to take action against Sam Kutesa who had been accused in a parliamentary report, of using his position to defraud Uganda Airlines Corporation. The President said the evidence against Kutesa was not conclusive. However, many people attributed Museveni’s defense of Kutesa to their joint family connections. Kutesa’s wife is a sister to the First Lady, and Museveni’s eldest son, Muhoozi Keinerugaba, is expected to marry Kutesa’s daughter. (Keinerugaba was, until recently, the manager of his uncle Salim Saleh’s business empire). The damning parliamentary report on privatisation was released in December last year while a meeting of European donors was taking place in Kampala. The public expected Museveni to take tough action against the ministers and other government officials implicated, if only to demonstrate to the donors that he was serious about fighting corruption. Instead, he told the donors that those shouting about corruption were «malicious and opportunistic,» trying to settle personal scores or gain political advancement. The censure motion against Kutesa is expected to be tabled shortly. Museveni is quick to enumerate the various institutions set up under his government to deal with corruption, including the inspectorate of government, the Public Accounts Committee, the vice-president’s office, and the Ministry of Ethics and Integrity” (Kirungi, 1999).
ENHAS Part II:
“Muhwezi’s counterpart and Minister of State for Finance in charge of Privatization, Kutesa, was charged with overseeing the divestiture of the cargo-handling operation of the Uganda Airlines Corporation (UAC). UAC had a 50 percent stake in Entebbe Handling Services (ENHAS), the company that handled its cargo operations, while Kutesa—in an apparent conflict of interest—owned the rest of the shares in the same company. In addition to being a shareholder, Kutesa was also chairman of the board of directors of ENHAS. This conflict of interest was contrary to clause 8(1-3) of the Leadership Code. A Parliamentary select committee, charged with investigating the privatization process, produced a lengthy report accusing Kutesa of directly influencing the decision to sell the airline’s 50 percent share to ENHAS, falsifying the company’s accounts, and evading taxes” (Smith, 2006).
ENHAS Part III:
The Paradise Papers has already proven that ENHAS profits has been tax evaded again as it has gone to a Shell Company in the Seychelles, which was a deal agreed upon in 2012. This was from ENHAS to Katonga Investment. We do not know much funds that is sent between them, but the reporting of the agreement and deals. Show that the ENHAS is a key component in the shady dealing Kutesa does. As he has previously used it to get ill-gotten gains.
As Global Witness is reporting it as: “Sam Kutesa, Uganda’s foreign minister, set up a discretionary trust in the Seychelles in 2012. Appley identified Kutesa’s companies a “high risk,” given his political role and media reports of alleged corruption and bribery involving Kutesa, during a routine review in 2015. In his response to ICIJ’s partner in Uganda, the Daily Monitor, Kutesa said “I don’t have anything to hide…”and that he established the companies, but “I have never done anything with it at all. I told Appleby to close it many years ago.” (Global Witness, 2017).
From Dorsey and Whitey Corruption Digest of January 2012:
“President Museveni has announced to members of the National Resistance Movement’s Central Executive Committee that he is investigating Justice Minister Kahinda Otafiire following an intelligence briefing that the minister masterminded the leaked oil bribery documents which accused Prime Minister Amama Mbabazi and ministers Mr Sam Kutesa and Mr Hilary Onek of taking bribes to influence the award of oil deals. As reported in the November edition of the Corruption Digest, the ministers maintain their innocence. However, Parliament has resolved that those involved step aside until the validity of the documents has been investigated. According to President Museveni, the intelligence report accuses Mr Ottafiire of masterminding the oil bribery scandal to disorganise perceived detractors in government. President Museveni has vowed to investigate the matter in his own capacity before briefing the National Resistance Movement Central Executive Committee”(Dorsey and Whitey Corruption Digest, January 2012).
Recent Bribe for Energy Deal:
“In or about February 2016 – after the Ugandan Foreign Minister had resumed his role as Foreign Minister of Uganda, and his in-law had been reelected as the President of Uganda – the Ugandan Foreign Minister solicited a payment from HO, purportedly for a charitable foundation that he wished to launch. HO caused a $500,000 payment to be wired to an account in Uganda designated by the Ugandan Foreign Minister, through a bank in New York, New York. In his communications, HO variously referred to this payment as a “donation” to the reelection campaign of the President of Uganda (who had already been reelected) and as a “donation” to “support” the Ugandan Foreign Minister. In fact, this payment was a bribe to obtain business advantages for the Energy Company in its efforts to secure contracts and ventures in Uganda’s financial and energy sectors. HO also provided the Ugandan Foreign Minister, as well as the President of Uganda, with promises of future benefits, including proposing to partner with both officials’ family businesses in potential joint ventures. In exchange, the Ugandan Foreign Minister assisted the Energy Company in obtaining business in Uganda, including by facilitating the Energy Company’s interest in potentially acquiring a bank” (DoJ, 2017).
The Foundation that Kutesa used the bribe through from the HO has no headquarters, no email and is not registered. So the bribe was fueled through an organization not existing in 2016. That is solicited through the checks by the investigators from the United States in November 2017. It was Special Agent Thomas P. McNulty who was looking into the case concerning Kutesa.
Clearly, there are enough scandals involving the Kitchen Cabinet Member Kutesa or Kuteesa. He has a history of corruption and misusing his position for monetary gains. He is one of them and will be surely continue to do so. Even if the United States charges him with money laundering and soliciting ill-gained funds or bribes for energy deals within Uganda. That is not surprising, as he has done that not only in 2016, but back in 2012, as well as other speculative deals getting state reserves and other funds to put in his own pocket.
If we really took a deep dive into his estates, his businesses and into his accounts. I am sure we would find more shadow agreements and more questionable money that has been earned by him and others. A man who has been used to getting bribes, surely, will appreciate it and expect so. Since the power is within reach and he can grate favors for the investors. Therefore, better pay up to get license and possible markets for their trade. This is done by paying in advance the Minister and secure profitable resources and advantages, that others wouldn’t. While also getting an okay and giving a call to the President. To make sure this is okay. Certainly, Kutesa could have maneuvered this way, all along. Peace.
Amundsen, Inge – ‘Political corruption and the role of donors (in Uganda)’(January, 2006) – CMI Commissioned Report
Department of Justice – ‘Head Of Organization Backed By Chinese Energy Conglomerate, And Former Foreign Minister Of Senegal, Charged With Bribing High-Level African Officials’ (20.11.2017) link: https://www.justice.gov/usao-sdny/pr/head-organization-backed-chinese-energy-conglomerate-and-former-foreign-minister
Kirungi, Fred – ‘Uganda – The fight against corruption at a crossroads’ ANB-BIA Supplement (March 1999) link: http://ospiti.peacelink.it/anb-bia/nr367/e06.html
Global Witness – ‘THE PARADISE PAPERS: TRUST TRANSPARENCY IN THE EU’ (November 2017)
Smith, John – ‘Case Study on the Role of Parliament and the Media in the Fight against Corruption’ (2006)
“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.
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)
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.
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
Explaination of the documents:
“Today the Town Clerk of Rukungiri Municipal Council Otim Andrew Kibwota was described as the most un serious accounting officer by the members of Rukungiri District Public Accounts Committee.Mean while all Councillors of Rukungiri Municipal council have unanimously voted to chase away this Town Clerk who is never in office and only comes when he hears that government has released some money and comes to withdraw it and share it with the Mayor Charles Makuru(Endira Kukyinduka) and Treasurer one Andrew Byaruhanga” (John Kakugombe, 30.09.2016).
Date: August 11. Location: KFM Radio HQ; 8th Street, Industrial Area, Kampala. Main event: Andrew Mwenda Live political Talkshow. Panelists: Presidential Assistant on Politics, Moses Byaruhanga, Mr. Reagan Okumu, an opposition Member of Parliament and ex-intelligence chief David Pulkol:
Andrew Mwenda: “… If he was elected, does that mean that other actors do not have views? … Does it mean that when people elect him, those who disagree with him should keep quiet? … You go and tell him to listen to this show, then he can get some wisdom, because all of you guys sit at State House and say, yes sir, yes sir. Here we say no sir… I can tell you, his little threats are completely ignored… Mwenda should not discuss security in the region, how can you say something like that? I don’t want… we run a newspaper and pay taxes which buy his suits, does he know that?… You see these African presidents. This man went to University, why can’t he behave like an educated person? Why does he behave like a villager?… But, how can he insult me like that? Museveni has no monopoly of irrationality, do you know that?… If he wants to behave like Saddam Hussein, let him go to Iraq… Peace and security is a public good… I think I understand security better than Museveni… That is what I think. I am a security expert… Oh, Jesus Christ! You really think laying the whole northern region, a third of the country, in waste, 20 years of war, is how you bring security into a country? Let him resign today, let me become President and you will see what I will do. This country will be better managed and there will be security all over the country. Security will no longer be a tribal good enjoyed by the Bantu in the south. Everybody in Uganda will be entitled to security. Museveni can never intimidate me. He can only intimidate himself… We are willing to pay Museveni a handsome pension if he decided to go home and rest and stop mismanaging this country. Why does he call me a boy?… Listen to me and you will get the correct security analysis. Listen to the President you will get the wrong one… The President is becoming more of a coward and everyday importing cars that armour plated and bullet proof and you know moving in tanks and mambas, you know, hiding with a mountain of soldiers surrounding him, he thinks that that is security. That is not security. That is cowardice… this one’s security is Jurassic security. Why does this one move with mounted anti-aircraft guns, AK 47 assault rifles, tanks and mambas, buffels and katyushas, Jesus Christ? Actually Museveni’s days as a President are numbered if he goes on a collision course with me… I wish I was 35, I would have contested the next election… you mismanaged Garang’s security. Are you saying it is Monitor that caused the death of Garang or it is your own mismanagement?… Aah what caused Garang’s death? Garang’s security was put in danger by your own government putting him first of all on a junk helicopter, second at night, third passing through Imatong Hills where Kony is… Are you aware that Garang died in Imatong Hills where you have always complained that Kony is?… Are you aware that your Government killed Garang? … I would say the Government of Uganda, out of incompetence, led to or caused the death of John Garang. They put him on the plane when it was already late. That plane the President said it has the capacity to detect bad weather 100km away. Why couldn’t they detect the bad weather 100km away? … Let me challenge you. When a plane is taking off from place A going to place B, it is supposed to establish weather at place B. If the weather at place B was bad, why didn’t your people here decide not to go? Maybe you don’t recognize that the Government of Uganda is responsible for the death of Garang. Whether it is by commission or omission, the government of Uganda cannot run away from that responsibility.”
This ends with Mr. Mwenda being arrested, jailed for those words.
My 2 cents:
Some of this people are well recognized people by now. So I won’t comment on each of one these loyal subjects to the Mzee. But we can see the wonderboy on the first page: which is Mr. Fred Mwesigye; Who will run the Ideology committee alone. I will not read you their long list of merits and how come they are picked. But we all know why this is happening now right? He is cleaning the camp of Mbabazi loyalist and Youth who wanted him to be the presidential candidate in 2016. It would make sense right?
Because the Yellow force with one man who has a vision and a mustard seed. We can only see that this is the way to go and how it will be. It isn’t the first clean-up in his long long reign. Last time was with Mr. Mahogony aka Gilbert Bukenya and his fall from grace. We can be sure that most of the men that has been made by the president will fall on their sword, if they don’t show loyalty to the resistance and revolutionary thinking of the Mzee. Nothing else will matter.
We’ll see how long Fred Mwesigye will lead and sow the mustard seed. We can see and then offer our thoughts to all the other appointments, but they are not as juicy. Still we all can understand the way and read between the lines of why this is happening right now. Peace.