Experts have revealed that Ugandans are able to finance their government so that it does not need to borrow from foreigners or commercial banks but the problem is that they lost trust in leaders because of their greed.
Speaking during the Kampala Geopolitics Conference 2022 on Tuesday at Makerere University, Prof. Phillip Kasaija Apuuli from the Makerere University Political Science Department said Uganda has internally vibrant people who can finance their government but the problem is the trust deficit which is a common disease in African governments.
Currently, the government is sinking into an ocean of debts and it seeks to borrow money to fund the Financial Year 2022/2023.
According to Prof. Kasaija, the government just needs to mobilize internal resources and bridge the gap instead of borrowing from countries that will come with high-interest rates.
“It’s possible for Ugandans to mobilize funds, an example is Ethiopia started building Renaissance dam in 2012, they never went to the IMF nor World Bank but this was internally generated money (4.3USDM), even prisoner contributed, this mean that we do have an internal resource that we can raise. The problem is the trust deficit, tell me how many African governments are ready to be trusted by their people to give them money? We have seen here how Covid-19 money was misused, Ugandans contributed but what happened to that money?” he asked.
“That is why many of us are reluctant because of the trust deficit. Most African leaders are extravagant. I normally attend these African Union meetings and I see how African presidents arrive; presidential jets, and first ladies with a lot of expenses. I’m actually amused and wonder why would such person spent a lot of money from a government that is shrinking into the sea of debts!”
Prof. Kasaija also revealed that in such a time when even the donors are struggling with the Russia-Ukraine war, this is the time government must focus on its internal resources from within their people and harness the trust deficit.
“My problem is how do we reconcile this? Yes, Ugandans are capable of lifting their government but they must have to trust in it. If they don’t have trust in the government it will be hard. We raised money for Covid, and they stole it, raised money for Ebola, and they stole it, so it will be hard for people again to contribute. Another issue is; as people are being told to manage their spending, leaders are busy buying expensive cars, in other wards as we tighten our belts, others are loosening theirs,” he said.
“We must also talk about that animal called leadership; it has also contributed a lot to this mistrust.”
Dr. Sam Kazibwe an International Relation matters expert also added that this is the time government must embark on cutting costs and rebuilding again trust.
“In the short term, we can do internal mobilization but you have got to work on trust and perception of the people, secondly there is a need to cut wasteful and unnecessary expenditure. This can save us a lot in the short term, this is not new in the African DNA, John Pombe Magufuuli did it in 6 years,” he said.
Dr. Kazibwe also advised that despite the evolution of technology and science, government must refocus its energy on agriculture for development.
“We need to put back our energies on Agriculture because therein lays our potential, however for commercial agriculture to thrive all over the world, the government must hold it like a baby because by nature agriculture is susceptible to losses and if the government fails to hold it like a baby, it is going to be left to peasants (farm-hand-mouth). If we are to engage in agriculture that will turn around this country the government must be heavily involved, that is the practice world over.”
He added that government must stop thinking that farmers can thrive without their support like any other businesses.
Meanwhile, currently, Uganda’s economy is already substantially burdened by debt and in the last financial year, it grossed 52.7 per cent, higher than the 50 debt to Gross Domestic Product (GDP) redline threshold as per the international Monitory Fund (IMF).
While speaking to the Daily Monitor, the executive director of Southern and East Africa Trade and Information Negotiations Institute (SEATINI), Ms Jane Nalunga said Uganda is crying for debt cancellation in civil society, yet the government is continuing to borrow. She urged that Members of Parliament must stop authorizing loans which are just wasted while some are not even used appropriately.
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