By Charles Katabalwa/Umoja Standard.
Kampala, Uganda: During the consultative meeting on the operationalization of a long awaited cooperative Bank at Serena Hotel Kampala, Former Ntungamo Municipality MP Aspirant Rtd. Lt . Moses Magufuri said, Uganda’s economic problems started with Prof. Paul Collier who advised the president to liberalize the economy, that made government to start privatizing government entities where our indigenous banks were also closed which is starting to negatively impact on us rapidly amidst good government programs that would work successfully if the proposal is to be effected.
“Our annual collection in revenue is 20 trillion and our budget is 48 trillion, meaning we are less than 28 trillion to run the country’s budget which in the end calls for external borrowing, this justifies the current debt at 80 trillion.
And remember the IGG report on corruption states that 11 trillion are lost annually. In the recent report she presented, the other year she presented 21 trillion, meaning that on average we are losing 16 trillion and compared to 20 trillion annual revenue collection, we cannot run a country of 4 trillion.
(R-l)- (Rtd). Lt. CMagufuri, Prof. Jacob Agea Godfrey & Lutankome Desire. Photo by Charles Katabalwa.
This means there is need to reorganize our economy by establishment of agriculture and cooperative bank to increase agro processing for the small and large scale industries to access finance to increase production which will widen the tax base for government to get enough revenue, URA cannot meet target due to stressed economy and also work around increase on the GDP growth in the agricultural sector to at least 70 % if at all we are focusing at registering a middle income status for an inspired society of the least poor common people of Uganda” said Lt Magufuri.
“The Agricultural and commercial bank continues to reflect at local institutions like Wazalendo, NSSF funds and other Sacco’s account that are lying in private banks like stanbic, Cairo international and Post bank which commercial banks are run by foreign investors(repatriators) ,Voters have been here for NRM why same government allow commercial Bank to exploit wanaichi(local people) this not the way of securing our future”- Magufuri states
We should all know that according to world bank research, it was established to state that the problem of Africa to succeed economically, it.has been limited capital for the agricultural sector to be able to stand as an independent sector. According to magufuri I presume that for the PDM to succeed well or its success, we must have our parish chiefs to act as loan officers under the proposed agricultural & cooperative bank that will directly act as a linkage of support to the real beneficiaries for a well guided close monitoring of government funding.
Emyooga, wealth creation would have succeeded very well because the common poor people the government intends to target would be guided In a manner on how to directly deal with funding through this bank.
Ugandans must wake up to the harsh economic reality, accessing long term agricultural funding in this country is close to impossible, the commercial banks here don’t trust Ugandan farmers due to lack of collateral, government continue to dump money in all schemes with minimum impact poverty remain alarming, youth unemployment is a reality, many youth are routed to middle East in syndicated slavery which has become a death trap.
Creating a cooperative bank that can provide affordable financing would create opportunities for many young people. The minimum capital requirement to start a bank is not a problem; there must be political good will… Emyooga 250 billion is over and above the minimum capital required by BoU, PDM 1 Trillion, inaccessible monies from ADB, Agricultural facility funds-Bou plus and all monies government is spending for capacity building all over ministries and agencies can be channeled to finance the venture.
The funds being held by SACCOs, WSACCO alone has over 100B in portfolio, our politicians must rethink their actions and understand the pain point of Ugandans are in “Financial trap” Ugandans have lost properties etc .
Agricultural extension officers have been deprived or defused to execute their roles fully because of no motivational indicators that can help the directorate of extension science to be at the centre of human resource since they are the right personalities on ground in our communities.
Remember these people could also be staff of the bank but not the ministry of local government employees.
In the same meeting Professor of Agricultural and Envrionmental Sciences at Makerere University, Professor Jacob Godfrey Agea , revealed Agricultural and Co-operative Banks play an important role in financing growth and inclusive business and enhances the availability of affordable financing to viable projects in agriculture and micro and medium scale enterprises development.
“It is sad that in an institution with the similar name (Uganda Co-operative Bank) was established in 1964 but closed in 1999.Precisely, the bank was closed on 19th May 1999, by the late Charles Kikonyogo, the governor of the Bank of Uganda at that time. The reasons given for its closure were “inadequate capitalization” and “insolvency to the tune Sh4.8 billion, as at 31st December 1998” , says Agea.
He adds that the East African reported in June 1999, that the bank’s collapse was as a result of the withdrawal of support by USAID, and a case of fraud involving bank officials. Since 2008, there have efforts to re-open the bank or create a replacement.
Agea has explained why Uganda urgently need Agricultural and Co-operative Banks.
“Let me start by saying Uganda’s agricultural sector is a best prospect industry sector for this country. Investors consider Uganda’s agricultural potential to be among the best in Africa, with low temperature variability, fertile soils, and two rainy seasons over much of the country – leading to multiple crop harvests per year. According to the UN’s Food and Agriculture Organization, Uganda’s fertile agricultural land has the potential to feed 200 million people saying 80% of Uganda’s land is arable but only 35% is being cultivated.
In FY 2021/22, agriculture accounted for about 24.1% of GDP, and 33% of export earnings. The UBOS estimates that about 70% of Uganda’s working population is employed in agriculture. Commercialization of the sector is impeded by farmers’ limited use of fertilizer and quality seeds, and a lack of irrigation infrastructure – rendering production vulnerable to climatic extremes and pest infestations.
Sector growth is also impaired by the lack of quality packaging capabilities, insufficient storage facilities, poor post-harvest handling practices, shortage of agricultural credit, high freight costs, the lack of all-weather feeder roads in rural areas, a complicated and inefficient land tenure system, and limited knowledge of modern production practices.
Ugandan producers often find it difficult to meet sanitary and phytosanitary standards required to export goods to Europe and the United States. Ugandan poultry, sugar, and milk products face export restrictions from Kenya”. says professor
WHAT YOU NEED TO KNOW ABOUT (RTD). LT. MOSES MUSISHA MAGUFURI
Born on February 2, 1986, just a few days after the NRM government assumed power. He was raised by Rtd Major Babumba Bwohe Henry, a pilot instructor in the Nakasongola Airforce.
The retired Lieutenant in the UPDF army sat his PLE from Kako P/S and UCE from Rwentobo H/S before he moved to Highway College Makerere.
After his high school studies, he moved to Nkumba University where he obtained a bachelor’s degree in Procurement and logistics management. He later obtained a Master’s degree in procurement and logistics management from the same University. Magufuri also obtained another Master’s degree of science in monitoring and evaluation from Nkozi University.
He worked with Roofings Ltd as Administration Assistant and at Bishop Stuart University Mbarara as a lecturer. He officially joined the army in 2011 from Kabamba Military Academy in Uganda, he was sent to Somalia in 2013 until 2015 on special duties during the struggle by UPDF to restore peace in Somalia where he significantly fought corruption in the army something that prompted Gen. Saleh and Operation wealth Creation to deploy him as Procurement and seed monitoring officer at NAADS a position he still holds till date so he fights the corruption that was in that body.
Well known for fighting corruption in the army while in Somalia and now in NAADS, Mugisha decided to give politics a shot and in 2018, his retirement from the army was approved. He is the Former MP aspirant Ntungamo municipality
Due to his humble family background, Mugisha is said to be a no-nonsense officer who walks the Talk and is principled, honest and respectful.