Well, it is one of these days where the NRM-Regime continues to pound on the Forum for Democratic Change and their Defiance campaign. It’s like the Resistance Movement having a hard time settling in as the 10th Parliament. Mzee must be so darn proud of loyal subjects who attacks Besigye and Company without ordering it.
So here is what was been said and reported in the Daily Monitor today:
“The State Minister for Microfinance, Mr Haruna Kyeyune, has expressed displeasure at the ongoing defiance campaign by the Opposition, saying it could stand in the way of government’s planned 2020 middle-income dream” (…) “You can then pick it up from there, because it frustrates investors,” (Emwamu, 2016).
With all that in mind, let’s be clear the FDC are not the main reason for lack of investors or investors fleeing. They are not the ones with guns, ammunition or tear-gas. That is the Government, the NRM-Regime and their security outfits. Therefore the stalemate is mostly created by the Uganda Police and the UPDF for their disregard for the citizens.
Hon. Kyeyune blames the other party because that is the easy way out and it shows loyalty to his boss. While doing so he is washing the hands of blood and the tears, so they are clean even though they never will be. As the government doesn’t wish accountability or transparent policies either with Electoral Law and organizations. Neither with security or economy. With that in mind, the Government themselves are hurting prospect of business, as the investors have to facilitate with government officials with secret deals behind closed doors; instead of transactions though open business. That is what is hurting the investments, together with uncertain currency, levels of inflation and the steady growth of government loans. That together is creating a fragile economic outlook that worries a fellow investor. But the easy way out is to blame Dr. Kizza Besigye and his DMC. Eh! What else Hon. Kyeyune, is it the ‘rollex’ fault that there are potholes at Kalerwe, Kampala?
Emwamu, Simon Peter – ‘Defiance hurts investment, says minister’ (26.07.2016) link: http://www.monitor.co.ug/News/National/Defiance–hurts-investment–says-minister/688334-3310484-15qfnfz/index.html
WASHINGTON D.C., United States of America, April 6, 2016 – A team from the International Monetary Fund (IMF) led by Roger Nord, IMF Mission Chief and Deputy Director of the African Department, visited Kampala from March 21 to April 6, to conduct the sixth review of Uganda’s economic program supported by the Policy Support Instrument (PSI).
At the end of the mission, Mr. Nord issued the following statement:
“In a complex global, regional, and domestic environment, affected by election-related uncertainties, Uganda’s economy continued to perform well. Economic growth is expected to reach 5 percent in the current fiscal year and accelerate to 5.5 percent in FY2016/17, supported by the scaling up of infrastructure investment. Following a sharp depreciation of the shilling, inflation increased, with core inflation reaching 7.6 percent in December 2015, though it has since then decelerated to 6.9 percent.
“Performance under the PSI has been mixed. There has been progress on increasing tax revenue, strengthening international reserves, extending the Treasury Single Account to local governments, and establishing public investment management guidelines. The decisive monetary policy response, in the context of appropriate exchange rate flexibility, contributed to the stabilization of the shilling and successfully curbed inflation expectations. However, the end-December 2015 overall deficit target was not met, poverty reducing expenditures were below target, and some structural reforms suffered delays.
“The mission commends the authorities for the steadfast implementation of fiscal policy in a complex electoral environment. Revenue over-performed through end-December 2015 and expenditure pressures were reasonably well controlled. While some fiscal tightening had been envisaged in late 2015 in the face of significant exchange rate pressures, the economy subsequently stabilized more rapidly than expected, leading the authorities to revert to the original budget targets. However, there were some renewed fiscal pressures in early 2016, including a slowdown in revenue and some additional spending. The mission welcomes that the supplementary budget currently before parliament aims at minimizing year-end slippages. The mission encourages the authorities to strengthen efforts to boost taxpayer compliance to compensate for the revenue shortfall.
“The mission welcomes the 2016/17 budget currently before parliament, which envisages a continued scaling-up of infrastructure investment while boosting domestic revenue by 0.5 percent of GDP, in line with the objective to raise Uganda’s revenue performance to levels observed in regional and other peers. The mission encourages the authorities to continue building capacity and controls to manage large public investment projects. It will also be important to avoid within-year reallocations from public investment to less productive government spending.
“The mission welcomes the decision by the Bank of Uganda (BOU) to lower the central bank rate, consistent with the forecast of core inflation returning to its medium-term target. The mission commends the BOU for its effective communication strategy, which contributed to well-anchored inflation expectations, reflected in sharply falling yields in recent weeks. The appropriate easing of monetary policy should provide a welcome boost to private sector credit growth and support economic activity.
“The mission welcomes the approval of the amendments to the Financial Institutions Act, expected to foster credit expansion and deepen the financial sector. The mission encourages the authorities to expedite the adoption of appropriate regulations to implement the new Public Finance Management Act in line with international best practice. The mission also urges the authorities to complete the reconciliation and validation of the stock of domestic payment arrears and take all necessary measures to avoid their recurrence.
“The mission is reassured by ongoing efforts to ensure Uganda’s prompt exit from the Financial Action Task-Force’s list of jurisdictions with strategic deficiencies in the legal framework for combating money laundering and the financing of terrorism (AML/CFT). The mission urges the authorities to take the necessary steps to facilitate the prompt exit, including by passing the amendments to the Anti-Money Laundering Act and the Insurance Act before May 2016.
“The mission met with Hon. Mr. Matia Kasaija, Minister of Finance, Planning and Economic Development; Professor Emmanuel Tumusiime-Mutebile, Governor of the Bank of Uganda; Mr. Keith Muhakanizi, Permanent Secretary/Secretary of Treasury; and other senior government officials, and representatives from the business, and international communities. The mission thanks all counterparts for their collaboration.
“IMF Executive Board consideration of the sixth review of the PSI-supported program is expected by end-June 2016.”
 The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF’s Executive Board, signal to donors, multilateral development banks, and markets the Fund’s endorsement of a member’s policies (seehttp://www.imf.org/external/np/exr/facts/psi.htm). Details on Uganda’s current PSI are available at imf.org/uganda.
It’s hard for me to write this in all seriousness. Since I writing about an African President whom himself said this in 1986: “The problem of Africa in general and Uganda in particular is not the people but leaders who want to overstay in power” (Ross, 2011). The President in particular is His Exellency Yoweri Kaguta Museveni, the President of Uganda for 29 years and counting!
Mzee said this in 1980 while running as a presidential candidate:
“Using a government position to a mass wealth is high treason. If the UPM is not going to be supported because it denounces such methods of getting rich, let it be”.
This he said while campaigning in Bushenyi and Mbarara districts(Weekly Topic, August 27. 1980).
So Mzee have had a few points back in the day and knew this was an issues. Now he deflects them to the extreme, to a point where it nearly get’s boring. Still here is his recents comments on the matter of riches and staying in power.
This was what Mzee said in November 2015:
““I have my own job at home of keeping cattle. Why would I stay when I have been defeated in the elections? I am not power hungry but I have missions to accomplish. I can’t leave without finishing with them” (Kazibwe, 2015).
Well, he has promised to step-down before, doubt he means this for long or even if this utter words was sincere other than for a show. This was for show from Mzee because of the coming Papal visit in Uganda (all seriousness the visit happen around 2 weeks after this interview). Well, let me continue on what he has said over the new-years and his ordinary modus operandi. When the pope has left the country and he could do what he normally do!
Mzee saisd this on 5th January 2016:
“I have been hearing people accusing me of sticking around; that I don’t want to leave government. Why would I want to stay in government?” (…)”First of all I am a very rich man. I have a lot of wealth and therefore it cannot be riches that I am seeking in government” (Waswa, 2016).
Well, you have in been in power since 1986. That is sticking around for a while in government and as executive power for nearly three decades. We know you are rich you have a giant farm in Ankole, you and your families own a dozen businesses, some hotels and even some transport businesses as well. You started earning big bucks on transport under the DRC war in the 90s, but that is a nearly forgotten chapter for you and your brother Salim Selah, right? Still you’re in government because you fear what will happen if you leave it. Especially when there is oil-money soon coming into the accounts of Uganda and you want that slice to. The minerals and wood from Kisangani will be small-fry a bogoya. Well, we know about that and as your businesses and family businesses can be lost if you leave government. Therefore you want to secure those, it is a valid argument to stick around in government for wealth as man men make their wealth that way, one of the reason why you went to the bush to eradicate corruption and embezzlement. Well, that chapter is also forgotten and loyal cronies is more and more important therefore we have NRM-Independent and NRM Flag-Bearers in the coming elections, this is new and the NRM-Independents are breach of inner-party law. We know it is okay as long as Mzee,says it’s okay; he even pays the fees for the NRM-Independents to the Electoral Commission. This is to gain their loyalty as well as the ones the members picked in the district and sub-county. That is beautiful right? So, that is the reason why people wonder why you stick around and what can you do now that you haven’t already done? Still, let’s continue to the 10th January 2016.
Mzee said this on 10th January 2016:
“cannot leave power now because all he planted has started bearing fruits” (…)”Those who say, let him go, let him go, they need to know that this is not the right time. This old man who has saved the country, how do you want him to go? How can I go out of a banana plantation I have planted that has started bearing fruits?” (…)”We can’t be in the middle of a forest and want the old man to go. This is not right. We must concentrate on development, my time will come and I will go. I don’t fear going because I have where to go, but we must first see where we go” (…)”We can’t be in the middle of a forest and want the old man to go. This is not right. We must concentrate on development, my time will come and I will go. I don’t fear going because I have where to go, but we must first see where we go” (Rumanzi, 2016).
Now he is proclaiming that he has made a country into a banana-plantation, where it is finally bearing fruits. That means sweat bananas with good yields. That must be from the mustards seed he planted in 1986. Wait, this isn’t a mustard farm, but still the metaphor can be extended to the Banana farm. Yes, he has made the country into a Banana farm or should I say a banana republic. Now that all of that was daft, but the point is clear.
The economic state is getting dire in Uganda, the loans rate on the government budget is going up while the aid and donor funds goes down. While the oil-price lowers before the oil-monies are getting in. The sale of coffee is growing but it has not the yielded price on it neither is the sale of the tea. Like they are not producing enough sugar for consumption and have to import from Kenya.
IMF in July 2015 wrote in their report this: “Short-term benefits of the oil price decline have been less pronounced in Uganda than in other countries in the region. In the past nine months, petrol average pump prices have declined by 10 percent in domestic currency”.
He surely isn’t done by seeing all the campaign teams struggling with the villages roads his been building since 1986. Since FDC Campaign Convoy have been stuck in Rwenzori and in certain northern districts, while Mzee himself needed a military vehicle to be able to get to campaign rallies in Abletong. Well, the Banana-plantations don’t need a good road as long as the banana gets to market?
Or is it the growing amounts of districts, sub-counties and municipalities? Is that your proud work to make sure that that every corner of the country have a local council to control 1000 people and have loyal payment from you? That seems like the final goal while going through your banana-plantation. In 1967 there was only 18 districts, by 1989 where already 34 districts and 150 counties. By my reckoning in late 2015 there are 111 districts and 167 counties. So the numbers has grown staggering amount of districts and steady rise of counties. Was this the big plan in 1986 make sure that there 3 times over district then when you came to power?
You might feel that you’re in the forest and not really in the mellow place of the banana-plantation since the situation economically, infrastructure, youth-employment, industrial-development, police-violence and so on. There are much darkness in the forest and not any sweat yields of the banana-plantation. The development that you have left is surely questionable; secondly the legacy you’re leaving behind is not the ones you wish you had. You could have been a man who led to real progress and stand for something new. Instead you’re the same old tribe of African leaders who overstays in power and does let other people rule.
The economic state, together with the lower prices on coffee and oil should be worrying. Together with edged prices on imports as Uganda imports are higher than their exports. The weaker currency and higher inflation makes the trading barrier even higher. There are so many signs that the general election together with the laws that parliament passes gives more and more power to the Executive and his regime. Ever since Public Order Management Act there been more and more laws who gives the government more stronghold over the public instead of giving them freedoms and opportunity to evolve and think on their own. The laws that gives the government carte blanche to borrow money through the new Public Finance Management Act; one section of this law says this: “Amendment of Section 36: (5a) In addition to subsection (5), a loan raised by the Government as a temporary advance by the Bank of Uganda, which does not extend beyond a financial year shall not require to be approved by the Parliament” (P5, 2015, PFMA). That says how the government can initially use the Bank of Uganda as an ATM, was that the problem you had in the forest or the fruits your having yield on the banana-plantation?
I know that you have no plan of stopping being in power, I am just wondering when you actual thought of leaving since you have been there as long as have lived. Something not many Presidents have done except your friend in Zimbabwe, and maybe aquatints like Paul Biya in Cameroon, and Teodoro Obiang Nguema Mbasogo of Equatoral Guinea. But hey, they are from francafrique countries so I only expect you smile at them when you arrive at African Union meetings in Addis Ababa. Since they know and you know that all the fellows who meet with decades ago are no longer there.
We know that what you said before new years are utter rubbish since you have promised before to step down and haven’t. That has happened before 2001 and before 2006. Even before you got the multi-party system back into place; Gen. Benon Biraaro said this early part of his campaign in 2015: “When we captured power in 1986, Mr Museveni promised to rule for only five years and after he will go and look after his cows, I never knew his cows would be Ugandans”.
Surely, if his still is in the forest or in the banana-plantation or even with his cows in Ankole, it is for certain he is still the executive power and will do what he can to keep that in 18th February 2016 or make sure the counting is fixed to measure the right way. Mzee will make sure that the counting of the ballots from the Electoral Commission declares him the President, AGAIN! If not he has prepared the police with a bucket full billions of shillings for post-election violence. So he must have looked in the darkness of the forest and worried for the outcome. In the sense that he smells the people are not his anymore. They do not follow him blindly and let him guide them freely. The banana-plantation is not as peaceful as it once was; This means that Mzee is not directly entitled anymore, to get the fruits of the plantation without any questions, from the people who are working on it. Peace.
Kazibwe – ‘Museveni: I am Ready to Hand Over Power If Defeated’ (19.11.2015) link: http://www.chimpreports.com/museveni-i-am-ready-to-hand-over-power-if-defeated/
Ross, Will – ‘Would Uganda’s Museveni recognise his former self?’ (07.05.2011) link: http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/9477930.stm
Rumanzi, Perez – ‘I can’t leave power now – Museveni’ (10.01.2016) link: http://www.monitor.co.ug/News/National/I-can-t-leave-power-now—Museveni/-/688334/3027090/-/ldhhetz/-/index.html
Waswa, Sam – ‘It Is Never My Intention to Stick To Power – Museveni’ (05.01.2016) link: http://www.chimpreports.com/it-is-never-my-intention-to-stick-to-power-museveni/
Well, we are in the middle of election hiatus and all, the Nomination and planned campaign that last to 18th February 2016. This here will not be on that, but be crunches numbers delivered from the Bank of Uganda Yearly report for the 2014/2015 budget year. This here will tell what I see as important from that report.
“The external position weakened with the current account deficit excluding official grants deteriorating to 11 percent of GDP compared to 8,8 percent in 2013/14. The deterioration of the current account deficit was largely driven by the services deficit, which deteriorated to US$ 731 Million in 2014/15 from USD 323 million in 2013/14 mainly account of higher payments of government services related to infrastructure projects, particularly Karuma and Isimba Hydro Power Projects” (BoU P:1).
That is big change in deficit! That must be a bit worrying that the amount of monies is becoming this big. Also with the infrastructure projects makes so big hunch of that deficit.
Financial risk management at Bank of Uganda focuses on the risk exposures in both the foreign exchange reserves portfolio as well as other operational areas of the Bank. Notably, foreign exchange reserves account for over 86 percent (2014: 74 percent) of BOU’ assets” (BoU, P: 12).
A lot of foreign exchange is major parts of the reserves of the bank. Is that a safe way to do it and doesn’t that devalue its own currency?
“The higher than programmed expenditure was partly, compensated for by the over performance in government revenue. Total government revenue, including grants amounted to UGX. 10,866.0 Billion, which has higher than target by UGX. 249.1 Billion. Grants and domestic revenues over performed by UGX. 173. 0 Billion, respectably” (BoU, P: 28).
The good news is that Government is able to collect more revenue as of taxation and grants to the Government. Though we can say it is a steady rise and the bank doesn’t explain how the rise happen, because this can’t all be collected on the Cellphone, Alcohol or VAT taxes, but something else.
“The fiscal deficit of UGX 3,621 Billion was financed by both domestic and external source, which amounted to UGX. 2,479.0 Billion and UGX. 919 billion, respectively. Domestic financing included a drawdown on savings amounting to UGX. 1,060.0 Billion and net issuance of Government securities of UGX. 1,386.0 Billion. The drawdone of savings was specifically used to finance expenditures related to the public infrastructure projects” (BoU, P: 29).
This here continues on how the financed and the fiscal deficit and sure the drawdone on the savings to build infrastructure projects.
The total public debt stock, in nominal terms, at end June 2015 is estimated at UGX. 24,242.0 billion, an increase of 24,2 percent of UGX. 19.518. 0 Billion at end of June 2014. External and domestic debt increased by 27,7 percent and 21,1 percent, respectively” (BoU, P: 29).
This here is frightening how much the rise is steady and getting more… The terms of it and the rise should make people shake their heads and worry. The Government of Uganda continues to hedge the Public loans and having a rise like this can’t be a sign of a healthy economy.
The depreciation pressures which started in early 2014 continued through June 2015, with the Shilling depreciating by 18,8 percent year-on-year on a trade weighted basis and by 29.1 percent against the USD to an average mid-rate of UGX. 3,398,49 per USD” BoU, P: 31).
That the currency loses value towards the dollar should also be worring. When you see how much shillings you need now to get the dollar now.
“Petroleum Revenue Investment Fund:
In June 2015, the Government opened two accounts (UGX and USD) in order to operationalize the PF. These accounts are to receive all oil related revenues. In June 2015, USD 36 million was received as part payment of the USD 250 million capital gains tax (CGT) liability from Tullow. This sum includes USD 142 million received in 2012 and USD 108 million to be paid in three equal installments of USD 36 million in 2015, 2016 and 2017” (BoU, P: 45).
“During the year, an amount of UGX 1,607,814 million was transferred from the Oil Tax Revenue Fund to Uganda Consolidation Fund. This balance relates to an amount of UGX 1,161,737 million from Tullow Oil paid to GOU for the settlement of tax dispute between the Government and Heritage Oil & Gas (U) Limited. It also includes stamp duty of USD 171 million (UGX 447 million) on sale of Tullow Oil’s assets to Total and CNOOC” (BoU, P: 107).
“In addition, the bank received USD 36 million (UGX 119,057 million) on 22 June 2015 on behalf of GoU, relating to Tranche 1 Tullow Oil tax settlement” (BoU P: 107).
“Ugandan Consolidation Fund refers to the Government appropriation account where all tax receipts are credited and appropriations made. During 2014/15, UGX 1,612,080 million relating to the oil tax revenue collections was transferred to the UFC” (BoU, P: 107).
As seen Petroleum Revenue Investment Fund and Oil Tax revenue shows how the oil impact has on the economy. We can also see the result of the longstanding dispute of the Government of Uganda and Tullow Oil Company. That has now been overturned and gotten the Total and CNOOC. There will be more monies at stake on a later stage coming with the found oil in the Bunyoro area and Lake Albert.
“The special loan to government relates to an advance to government for procurement of the presidential aircraft with interest rates (LIBOR plus 100 basis points), maturity date and repayment terms agreed between Ministry of Finance and the Bank as stipulated in the memorandum of understanding. The last loan instalment was paid off on 24 July 2015” (BoU, P: 107).
That was an expensive airplane for the president! Though it’s all back-paid this still shows how the President buys what he needs and wants, and not what the people need.
Uganda Consolidation Fund: (by the 31. June of the year)
2014 it was UGX 3, 245,961 million.
2015 it was UGX 2, 386,056 million.
(BoU, P: 117).
As proof with the rising debt and deficits, even with rise of higher taxs returns the Government of Uganda. Stills shows that their spending more than they getting since the Taxation fund is dwindling and become less and smaller account. That in total with the other numbers should be a worrying thing to see. Especially knowing how the NRM-Regime goes mayhem on the economy the coming months of elections paying for every votes with chickens and goats in the districts. We have seen that before and will see it again. This will also lead to rise of inflation with more running through the economy so the value of the currency might also dwindle towards on dollar. Wouldn’t be surprised if the Shilling comes up to 4,000 on a dollar!
And that is not a good luck, since the imports and prices will rise for the rise of cost of imports. But hope my predictions isn’t correct, but election cycles usual make the ordinary voter pay and those receiving just get a patch on the wound created by the mayhem done to economy by the ruling regime. Peace.
Bank of Uganda (BoU) – Annual Report 2014/2015