Uganda being a landlocked country without sea port opportunity that boost much revenue base to support the economy, without ready investment capital to accelerate the exploration of our natural mineral resources endowment that still depends on foreign investors and partners, it means it is time for government to consider doubling the agricultural budget and be taken as a number one priority to help propel the position of our economy.
When you look at growing economies, we must note that countries like China, Indonesia, Malaysia, Tanzania among others have concentrated on economic development activities that boost their economy by using their volumes of people as ready market and get best use of their work man ship.
For example handcrafts activities were instrumental for Malaysia and Indonesia growth and its people, China with the rice cluster/ estate farming simulator that made them advance to the industrialization growth that sparks the high level of export rates.
Now as we focus at nationalism ideology as one of the NRM /NRA pillars, with the parliamentary caucus meeting with the head of state his excellency Yoweri Kaguta museveni, this is what in my opinion I would expect the patriotic leaders to look at address and being honest to the common people and citizens of Uganda to understand why we are faced with high commodity prices.
The factors that lead to high prices in comparison to global showdown and after effects of COVID-19 among them being; Supply and demand for commodities change and Currency movements , that is the shilling appreciation with the dollar rate.
Others are Geographical growth, that is in terms of local growth and decline of economic activities and the overall distribution of the changes within and across countries. The pattern of growth in space can vary substantially across regions, countries and industries.
Mother Nature, Economic growth, Transportation and storage costs are also among the Causes.
THE BOTTOM LINE
Now to be precisely credit should be given to government achievements over the social economic transformation programs, with Emyooga and now parish model development program which seem to give timely future impacts depending on the ideological mindset orientation to the common people on how to understand wealth accumulation because initially most Ugandans have taken government assistance and financial support as simply a token of appreciation for his Yoweri Museveni that they end up eating without knowing that is it an investment to better their livelihoods and poverty eradication programs.
Can we all understand that the agricultural sector that is the backbone of Uganda’s economy only contributes around 23.93 percent to the GDP growth, which is literally a sign of threat to our economy, position of the shillings to appreciate with the dollar influence, it means there is need to respect agriculture if we are talking about high production that will capture the improvement in the export base and boost over increase in the revenue base.
We need to see the cluster, estate cooperative farming like it was in the early 70s by our grandparents, establish agriculture banks that guarantee grant schemes like it was before in place to help boost the sector as well, commercialized agriculture mobilization extensively should be steered by government since the mindset of Ugandans is still negative to adopt the initiative so first where most Ugandans and majority the youth who are a big population are taking farming as a punishment!!
The 23.93 percent agriculture contribution to our GDP is a signal of crisis of this nature if ministry of agriculture, OWC, trade don’t come up with triple efforts to find solutions before its time up, with good consumer, farmers and producers protection policies but if things remain as they are, it means Ugandans should expect the worst because globally we are failing to catch up with standards on which economic activities that dominate or attractive bulk foreign markets in terms of exports which are determinant forces of revenue capital and dollar appreciation .
Cotton and coffee, simsim, soya bean (Far East, Elgon and Teso land) , etc where strong crops to the economy of our nation since they attracted a lot of foreign market an example is the cotton and it’s seeds that were oil raw materials used to fetch us a lot of good market from England thus making our national treasury financially stable with quite an debt free independence.
An example in the east there was Namasagali, kibuku, Bukonte , Nakivumbi Ginnery cooperatives etc.
Yes raw materials are key to some hiked prices, but also we need to look at low investment rates, improved terms of trade, improving on the fiscal revenue significantly and allow us to increase current and capital government expenditure while reducing our fiscal deficits or enable generating fiscal surplus .
The challenge of managing high commodity prices volatility can be done by smoothed financial investment. Have market transparency. Revenue stabilization funds minimize real exchange rate appreciation.
To stretch still, I would suggest that let the NRM government get the best use of the regional tier and make it implemented to fully give chance to strengthen the decentralized administrative units regionally because it can be also another tool to help give opportunities to given regions to concentrate better in the agricultural activities that suits their environment and increasing production on how best a certain region can do better in given crops that can attract international market and local investment which will surely help boost agro based production and industrial revolution in our country. Because growth goes with the increase or improvement in the inflation adjusted market value of goods and services produced by an economy over time both locally and internationally If we are to tackle the problem of shillings and Dollar appreciation. Patriotically Ugandans must all know that it is all our collective efforts to help our economy grow up to the standards that we want it to be and have desirable living standards that suits our income per capita by engaging in agricultural economic activities that should shoot up the GDP growth to at least 60 percent.
kalulu kasalawo kikalangufu is the Public Relations Officer at Child Of A Soldier Network Uganda.