
“I have been peeping through my car window as I travelled here for this function and I have kept wondering to myself how do these people (in Busoga sub region) live through this sort of poverty? I have screened through all these villages where I have passed but the houses and all the other things I have seen have left me wondering how it’s possible for our people [in Busoga] to survive through these hard economic conditions”– President Yoweri Kaguta Museveni (18.11.2023).
We are living in 2023 and the generations that saw the implementation of the Structural Adjustment Programs (SAPs) are old, bitter or forgotten about. They saw the implications and the costs of doing so. The privatization and liberalization of the economy, which was the stipulations of the Bretton Woods Organizations and getting loans in the 1990s. This was at a time when President Museveni himself was a “new breed” of leadership and even a President that Bill Clinton spoke kindly of.
However, those days are gone, decades later and the grim realities of the effects of those policies are now coming to haunt the government. Industries and the industrial hub of Jinja city died as a cause of this. State owned and operated Cooperatives ceased to exist, sold or just dissolved. The ones thriving industries was sold for scraps and are now a jaded memory. While it was decades one of the points and cities that pumped foreign currency and created wealth.
The National Resistance Movement (NRM) and President Museveni earned fortunes on the loans, grants and the SAPs. They got favours and favourable terms for the central government, but the businesses, state owned enterprises or cooperatives had to adjust to new terms. Which inflicted harm and damage, which have never been able to heal.
That why this was reported earlier in the year:
“According to the Busoga Development Agenda (BDA), Busoga’s economic collapse is partly a result of the collapse of Jinja’s industrial prowess due to the 1994 privatization policy and weakening of the cooperative movement in Busoga, a disunited political leadership and cultural leadership differences that destabilized the role of the Kyabazingahood as a rallying point for the unity of Busoga after the demise of the late His Royal Highness Henry Wako Muloki” (Busoga Today – ‘Development and Economic Empowerment’, 22.07.2023).
If you ever wonder how the process and the sales was done by the National Resistance Movement (NRM). Well, it is done like it has always been done. It has been done with favours and within own ranks, the NRM Way. The way of the President and his inner-circle. They are getting bargains and good deals or a trade for loyalty. That’s what Museveni does and he can sell of anything, if it benefits him and his time in office. He don’t care if a hotel goes bust or gets sold for scraps. Museveni don’t mind if a factory or a cooperative gets locked in and gets worse ownership. No, he sold something and return he got a loyal crony. That’s the business model and that how you destroy industries and production.
Just read this one here from an Academic Paper in 2011:
“During the privatization process at least seven (9%) out of 74 SOEs were undervalued and sold to government employees costing government Shs. 4.3 billion (US$2.2) (over US$2,152,000 at US$=Shs.2, 000).xxxvi Undervaluation (AV>SP) was calculated as the excess of asset value (AV) over the sales price (SP). The undervaluation was explained by politics and weak private sector. First, the ruling party supporters included cabinet ministers, presidential advisers, National Resistance Movement (NRM) supporters and Members of Parliament (MPs). In order to marshal political support, the ruling NRM either undervalued or condoned default” (…) “Second, undervaluation was expected even before sale if the locals were to buy SOEs. What was not expected, however, was the preferred sale of the SOEs to NRM cadres and family members of President Museveni. Before sale, it was realized that the locals would not be able to buy all assets offered for privatization. Total SOE assets exceeded all the amount of money in the Ugandan Banks. While total SOEs assets were valued at Shs. US$ 1 m (Shs. 200 billion), the entire money supply was just shs. 50 billion and bank deposits stood at shs. 46 billion end of January 1989” (David Kibikyo – ‘Fiscal impact of privatization in Uganda 1992-2007’ July 2011, African Journal of Political Science and International Relations Vol. 5(7), pp. 371-387).
So, when the NRM comes to town and Busoga and says “vote for NRM we bring development”. Well, in regards to the Busoga sub-region. The NRM has brought the opposite. The President and his policies from the 1990s and early 1980s are the destructive means, which destroyed the industries of Jinja. That’s a fact and the sale of SOEs didn’t benefit the sub-region either. It was a drive to keep the inner-circle happy and the enrich his family. That’s what the gist of the privatization, which hurt Busoga and other owned state owned enterprises across the Republic.
The President can act like a visitor and as a stranger to Busoga in 2023. However, it is his will and his choices that put them there. He decided to take the International Monetary Funds (IMF) and World Bank (WB) funds that entailed the SAPs. The President didn’t mind the implications and complied, as he saw positive outcomes… profits internally and externally become beloved. Because, he followed “Washington Consensus” and traded the future of the nation for a few silver coins. That’s what he did and now his blaming the Busoga in part for their poverty. When he can be blamed and should carry a heavy burden for doing so. Peace.












