By John V Sserwaniko
On Tuesday evening, State Minister for Microfinance Haruna Kasolo was hosted on Med Nsereko’s very popular “Kiriza oba gana [leave or take it]” political program on Buganda Kingdom’s CBS radio.
Kasolo was here to run through the very transformative things ordinary Ugandans (who comprise much of the CBS listenership) should expect in the FY2019/2020 Shs40trn budget his boss Matia Kasaija will be reading out to Ugandans tomorrow Thursday.
He seemed to realize the apathy Ugandans tend to generally have towards the budgeting process and he set out to communicate things that create renewed interest in budgeting process among Ugandans. Deploying a populist approach, the eloquent Kyotera County MP highlighted things he calculated Ugandans wanted to hear and become excited and hopeful towards what has become mere ritual for many citizens.
Gratefully, the Finance Ministry where Kasolo works has correctly realized this hence their decision to undertake a number of activities aimed at deepening public interest, keenness and eventually participation in budgeting processes.
Kasolo’s revelations clearly indicated the extent to which FY2019/2020 is deliberately tailored to be an electioneering period budget most likely with an eye on Bobi Wine, the populist Kyaddondo East MP whose unexpected entry into politics has created a total new challenge for veteran leader Yoweri Museveni and his National Resistance Movement (NRM).
WHAT DID HE SAY?
Kasolo revealed that under the new budget, 16 SACCOs would be funded in every village, parish and Sub County all the way to the district level. This simply means every Ugandans is going to touch money in the next FY and thereby increasing the impact of government in people’s lives.
He also explained that the President has sanctioned him to ensure creation of 16 SACCOs at every administrative level indicated above and these will be SACCOs of say saloon operators, metal fabricators, LC officials, Boda-Boda riders, coffee farmers, cassava farmers, transporters, fishing community members, church choir members, carpenters, bicycle mechanics, plumbers, technicians etc coming together to qualify to partake of the Museveni windfall.
The Minister explained this money would be available to all national ID-carrying Ugandans regardless of political affiliation. Supporters of People Power, FDC, DP or even UPC will be as qualified to be supported under this scheme just like NRM supporters. The groups will be expected to pay back at an interest rate of just 8% compared to more than 20% at which banks currently lend.
Kasolo said government estimates this is the best way to force commercial bank interest rates down because banks will have no option but to revise their interest downwards or risk total obliteration resulting from total loss of business. Because government can’t fix interest rates this being a free market economy, the Minister explained, availing alternative cheaper financing is the best intervention.
“Med forget about unfulfilled pledges. This will begin to be available in July which is next month and our people should begin doing business without being stressed by banks or even money lenders,” said Kasolo who insisted this has nothing to do with Museveni being scared of Bobi Wine or any other person in 2021.
He said there would be special focus on journalist associations which are going to be funded big time to help media practitioners overcome financial impoverishment. He said even elected leaders like LC1 officials, Parish/Sub County chiefs and councilors would be encouraged to form SACCOs and access this funding by government at 8% interest per annum.
He said enough money had been allocated in the budget and all the 1430 Sub Counties will be covered. He said teams from his docket would immediately hit the ground to sensitize potential beneficiaries how the new scheme will work. “There will be basic training on how to form groups and operate them,” Kasolo explained.
FREE ELECTRICITY FOR ALL
Yet that isn’t all. Kasolo said over Shs1trn had been given to Rural Electrification Agency (REA) to specifically undertake massive electrification programs to ensure there is universal access to electricity by all Ugandan households before Ugandans celebrate Christmas of 2020. “It’s going to be totally free electricity; free equipment and free installation and connectivity. That is how the service providers have been contracted. They will bring power to your house and also connect it for free at the government cost,” the youthful Minister explained.
He braggingly added: “Bwana Med eno ye Uganda empya abantu baffe jebagenda okweyagaliramu [My brother Med there is nothing to be surprised about because that is the new Uganda our people are going to be enjoying effective this FY].” He explained the Shs1trn given to REA will cater for all non-connected households in all the 1,430 Sub Counties except those which already have the electricity connections. He emphasized this isn’t just a promise by the President but something taking immediate effect.
AGRIC FUNDING
Kasolo also rejected criticisms that the Museveni government deliberately underfunds agriculture (which employs over 70% of the people) in order to keep Ugandans poor and easy to govern. “There are many things which people ignorantly say about agricultural financing but we are actually doing much more beyond the Shs1trn you see as directly going to MAAIF. Look at the investment in the roads used to reach market places and then the Shs463bn given for irrigation and water projects in the Ministry of Water. That is all going to strengthen agriculture but my colleagues intentionally don’t make that clarification because they want to score political points and make NRM and my President look insensitive which he isn’t,” Kasolo explained.
The Minister argued “there is no other reason why people are over criticizing government especially in Kampala where politics has become a full time job for some on the city streets other than the fact that they are very poor and have no purchasing power.” He added that in rural areas like his Kyotera County Ugandans are wealthier because they work as opposed to Kampalans who just discuss politics whole day. “The fact that there are many known haters of NRM who have succeeded and made money in this Museveni era is proof that this poverty is an attitude thing. You can’t say Museveni is killing us with poverty when some of your peers are advancing from bicycle to motorcycle and from motorcycle to cars. Some have built houses and rentals in this same period. Many of the beneficiaries are my fellow leaders in the opposition but they want poverty to stay on other people’s children so that there is always that angry crowd to be incited against the President.”
He added that people wouldn’t be complaining about new taxes resulting into hike in commodity prices if they had significant income. “Now a person like you Med you can never complain because you earn well. At the Super Market you just pay your bill and go away without even realizing how much the bread was. That’s the level we want every citizen to come to and we are unstoppable,” Kasolo bragged.
Kasolo also referred to Agricultural Credit Fund (ACF), recapitalization of UDB and the Microfinance Support Center getting additional Shs40bn this new FY as part of the many efforts government is undertaking to force down interest rates while enabling Ugandans to access cheap financing. (For comments, call, text or whatsapp us on 0703164755 or email us at mulengera2040@gmail.com).
