President Yoweri Kaguta Museveni has commended Mehta Group for pioneering the sugar industry in Uganda.
“I also thank them, particularly, Mahendra Mehta and his wife for not giving up after the disappointment of Idi Amin. When we called them back, they came immediately,” he said.
President Museveni who was accompanied by the First Lady and Minister of Education and Sports, Maama Janet Museveni, made the remarks on Saturday 12th October, 2024 while officiating at the centenary (100 years of existence) celebrations of Sugar Corporation of Uganda Ltd (SCOUL) in Lugazi Municipality.
SCOUL, the first sugar factory in Uganda was established in 1924 by the late Nanji Kalidas Mehta, the founder of Mehta Group.
The President also congratulated Mehta Group for their resilience, determination and loyalty to Uganda.
“On behalf of Uganda and that of the National Resistance Movement (NRM), I want to thank and congratulate the Mehtas on two counts; number one, the elder Mehta who pioneered the Sugar Industry in 1924. I thank him and congratulate him and I also congratulate Mzee Mehta who came to Uganda in 1952 after studies and started being engaged in the management of the group. That’s 72 years now, that is a good contribution,” he noted.
“I can attest to the loyalty of Mzee Mehta to Uganda. During Corona (Covid-19), I got information that Mzee Mehta was stuck in London but he didn’t want to stay in London during that period. Although we were not allowing tourists to come, I had to issue a special permit for Mzee Mehta to come. So you fellows who like to go to London, Mzee Mehta and myself like staying here.”
President Museveni further revealed that the NRM government’s wise decision to return properties to the Asians who had been expelled by former President Idi Amin played a crucial role in attracting the Asians to invest more in Uganda.
“I want to thank the Mehtas because right now they are producing sugar, cables, they are also producing 16 megawatts of electricity from biogas, they are producing ethanol, biofertilizers and they are also growing roses,” he said.
He also directed that petroleum companies should start blending imported fuel with locally produced biofuel.
“In the meantime as we are still importing petroleum, I now direct that all oil companies blend imported petroleum with the ethanol made by our people here. Secondly, I will also not allow the importation of cables yet they are manufactured here with our raw materials.”
Furthermore, the President pledged to support Mehta’s horticulture and floriculture business.
On the other hand, President Museveni informed the gathering that the economy of Uganda had been able to grow progressively because of the correct ideology of the NRM government.
“Now, the big problems in the world but particularly in Africa have been mistakes on three fronts; philosophical mistakes, ideological mistakes and strategic mistakes. For instance on philosophical mistakes, one question that has been disturbing people has been what makes man work best? Some people have made mistakes on that, they have not answered it well. We have altruism, but these are the minority but the majority of the people work for self interest,” he explained.
“Therefore, when you are designing a strategy for the whole society, it is not correct to design as if the whole society will work under the basis of altruism. That is why there were a lot of mistakes in Africa in the 1960s when the private sector was not encouraged and in fact it was discouraged. Fortunately, by the time we came into government, we had clarified our views on this and we put them in what we call the 10-point programme.”
He expounded that in their 10-point programme, they advocated for a private sector-led economy with the parastatals acting as a supplementary effort.
“We have parastatals like the National Water and Sewerage Company, Uganda Development Bank, National Housing Finance Bank, Post Bank and army companies which are doing very well,” he said.
“Like on the issue of the government nationalising private property which was common in Africa in the 1960s, this was definitely a mistake. Even if you are a socialist, it was not necessary to nationalise what the private people already had. You should have supported that, then if you want to start a parastatal you can do it separately,” he added.
He noted that due to the NRM correct ideology, Uganda now has more than 8,000 factories.
“When we set up Uganda Manufacturers Association in 1986-87, we started with only 80 factories, we now have more than 8,000, these are mainly private sector factories.”
President Museveni also thanked the Mehta Group for their Corporate social Responsibility in the areas of education and health care.
Additionally, he was pleased with Mehta Group for taking on his advice of growing their own sugarcane used in sugar production.
“Sugarcane is not a high value crop and our farmholders have small acreage; four acres and less so to involve them in sugarcane growing is really to divert them from solving their own problems. The only people who can make money from sugarcane, maize and other crops is by using extensive agriculture. Therefore relying on outgrowers was not a good strategy. I’m now glad you listened to me and you now grow your own sugarcane so that you can stabilise your supply.”
Maama Janet Museveni applauded the founder of Mehta Group, the late Nanji Kalidas Mehta for coming to Uganda at the age of 13 years to set up a sugar factory in the East African country.
“It sounds like fiction or a dream but this is what actually happened. I salute him because he demonstrated courage, persistence and must have been a special kind of a person,” she said.
“I want to congratulate the Mehta family on their contribution to the development of Uganda through their many different enterprises such as the sugar industry, Cement and building materials, electrical cables, horticulture and floriculture and many others. The Mehta Group is one of Uganda’s largest industrial conglomerates.”
Maama Janet also praised the NRM government under the able leadership of President Museveni for not only creating an enabling environment that has enabled investors like the Mehta family to thrive but also taking the Godly and courageous step of restoring the wealth and property of the Asian people who were sent away by Idi Amin.
She further commended the Mehta family on their values and business ethics.
“I’m aware that besides being leaders in the business world, you have also done great work in terms of community development. For example I know that you run a hospital in Lugazi as well as various dispensaries. I also know that you have established schools. This is truly commendable,” the First Lady asserted.
“I pray that the young generation will learn something from people like you that it is possible to build for generations; we can create wealth for generations and make a significant contribution wherever God sends us in the world. Finally, I want in a special way to salute my sister and friend, Suni, who has been a real friend and sister over the years. Please know that we appreciate your friendship with us as family just as much as we appreciate your love for this great nation.”
The Chairman of Mehta Group, Mzee Mahendra Mehta thanked President Museveni and Maama Janet for gracing the group’s celebrations.
He also lauded President Museveni for creating an enabling environment that had enabled companies like Mehta to thrive in Uganda.
“Your Excellency and the First Lady, we are grateful to you for the support towards the Group.”
Mr. Mehta further informed the President that the group also plays an important role in the social development of the country through their various contributions to the education and health sectors.
The event was also attended by Ministers, Members of Parliament, among other invited guests.
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