{UAH} Myth of Obote’s Vision.

Myth of Obote's Vision.

Asia Africa Intelligence Wire |

September 16, 2004 | Copyright (From New Vision (Uganda) – AAGM)

Byline: Kyeyune Sendagi

All parastatals cannot be attributed to post-independent Uganda In her column in Sunday Vision (November 9, 2003 and August 15, 2004), Beti Kamya Turwomwe attributed establishment of a number of parastatal organisations to the former president Dr. Milton Obote's post-independent Government.

The organisations cited include the Uganda Development Corporation (UDC), Coffee and Lint Marketing Boards, Uganda Commercial Bank (UCB) and the cooperative movement. Unfortunately, apart from UCB, none of these organisations was set up after independence. The facts on the ground are that UDC was established in 1952 by the British colonial governmence to promote and spearhead Uganda's industrial and commercial development, largely for import substitution. Consequently, during the same year, Uganda Cement Industry Ltd. was established with two factories, one in Tororo and the other at Hima in Kasese district.

Between 1952 and 1975, a total of 20 companies were established and categorised under five major headings: agriculture (two), industry (seven), foods and beverages (four), textiles (three) and finance and real estate (four). Nine of these were established between 1952 and 1960, nine between 1963 and 1968 and one each in 1972 and 1975. Most of the companies were established as joint ventures between UDC and large, local and foreign private companies with UDC as the core investor. In order to ensure proper performance of its supervisory functions and maintenance of a controlling interest in the jointly-owned companies, UDC in most cases, appointed the chairmen of the relevant Board of Governors. Because of UDC's mission and mandate, the process of industrialisation had to continue through the years irrespective of who was in power after independence. That explains why two industries were even established during Idi Amin's regime in 1972 and 1975.

The colonial government also set up boards to market crops. The Coffee Marketing Board (CMB) was set up in 1959 and Lint Marketing Board (LMB) at around the same time. In 1950, the Uganda Credit and Savings Bank (UCSB), was established to introduce peasants and small scale businessmen to the banking culture by encouraging them to make savings and get credit from the banking system to finance their businesses. In 1964, through the normal process of growth and development, UCSB evolved into a fully-fledged indigenous bank called Uganda Commercial Bank to offer all banking services to the public. With regard to the cooperative movement in the country, it began in 1913 when farmers in Kiboga formed the Kanakulya Growers Cooperative Society.

The movement grew exponentially during the 50s and 60s and by 1990, there were 5,300 cooperative groups of different categories. It must be said as a result of macro-economic policies of globalisation, divestiture, decentralisation and market liberalisation, farmers benefited from these policies. Coffee growers used to earn 20% of the export value of FAQ coffee, whereas now, the farmer gets between 67-70% after implementation of these policies and the rest (30-33%) is shared between the primary coffee buyer, the processor, the exporter and the importer. Given these facts and figures, it is clear that all parastatal organisations mentioned in Kamya's newspaper columns were set up long before independence and, therefore, cannot be attributed to the post-independence Uganda Government.

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