President Museveni yesterday painted a bullish picture of the economy and outlined three bottlenecks in which the government is seeking South Africans’ support to attain the desired socio- economic transformation.
The President pointed out Uganda’s economic potential and asked South African investors to join the government efforts of helping the 39 per cent of Ugandans to join the money economy, add value to Uganda’s raw materials and pick interest in the country’s E-mobility sector by investing in areas of manufacturing lithium batteries.
“Countries like Uganda have got everything. There’s nothing that we don’t have ranging from agriculture, minerals, forests etc., so we have a very big potential, it is good that we link up as Africa and work together,” Mr Museveni said.
“When South Africa got freedom, I met Mzee Mandela, and I suggested that we work together with South Africa because it had some capacity at that time of more investors, some capital and I wanted to take advantage of them, and they also take advantage of us to build a strong economy for Africa. That is how I proposed to Mzee Mandela that we start a wide body joint airline, but it didn’t continue due to some challenges.”
The President, who was speaking at the Uganda- South Africa Trade and Investment Summit held at Commonwealth Resort, Munyonyo in Kampala under the theme; “Accelerating Uganda- South Africa Trade And Investment”, informed the audience that the summit was a crucial ground to link Uganda’s business potential with that of South Africa.
Mr Museveni requested the South African companies operating in Uganda like MTN and Stanbic Bank and others to join the government’s efforts of helping all Ugandans to join the money economy in order to achieve the desired socio- economic transformation.
“You have heard that until recently, 68 percent of the population was out of the money economy. We had to bring in the army to distribute coffee seedlings for these people to join the money economy by growing coffee. Now the figures of the ones outside the money economy are 39 percent and we want everybody to join the money economy. If all these join the money economy, will it not benefit the telecom industry? If all these people join the money economy, won’t they have more money in the bank?” the President asked.
The two-day summit attracted 40 companies from South Africa. The summit is part of government concerted efforts to prop up private sector and create the required jobs for more than 700,000 Ugandans who join the job market every year, regardless of qualifications.
With the help of foreign and key local investors in strategic sectors, the President is hopeful that value addition to Uganda’s raw materials would help the country build an independent, integrated and self-sustaining economy.
“If we add value for example on coffee instead of getting $2.5 (about Shs9,322) per kilogramme, we shall get $40 (about Shs149,152) per kilogramme and when the economy of Uganda becomes much bigger, we shall all benefit,” President Museveni asserted. “So, I am very glad that now in our small battle here, we are working together to solve this problem. That means more Ugandans who are outside the money economy will join the money economy,” Mr Museveni said.
He also commended South African President Cyril Ramaphosa for working towards strengthening the bilateral ties between the two countries.
The President asked investors to boost Uganda’s e-mobility sector in order to speed up economic growth and service delivery in the country. “We are building our own electric vehicles and we are also trying to come up with lithium car batteries. We shall make the batteries here so get me investors. We shall use our lithium batteries in our vehicles and export others,” he said. Explaining the need for stronger economies, the President warned African governments against inviting the United Nations peacekeepers to defend them from insecurities, saying this is a big insult to the continent and governments that have responsibilities of protecting their citizens.
Mr Museveni also witnessed the signing of Memoranda of Understanding (MoUs) between Uganda and several companies from South Africa.
Business environment
The Minister of State for Privatisation and Investment, Ms Evelyn Anite, commended the President for creating a conducive environment for Ugandans to live in but also for businesses to thrive.
“Right from the time you took power in 1986, you stated the agenda for the country very clearly and you did say that it was not just a mere change of guard, but it would be a fundamental change. Mr President, we have indeed been witnessing fundamental change in different sectors of the economy,” Ms Anite said.
The MTN Group chairman, Mr Mcebisi Hubert Jonas, asked the government of Uganda to reduce the cost of doing business, saying such a move will strengthen the investment environment and ensure an enviable investment climate.
“This summit has been very successful. It has not been looking at deals only, but also looking at the investment environment in Uganda and the continent at large,’’ he said.
