Agoa disappointed me - Museveni
Mr Jaswinder Bedi, the director of Fine Spinners Uganda (R), shows President Museveni (C), First Lady Janet Museveni (2ndR) and Speaker of Parliament Rebecca Kadaga (L) cloth material during the opening of the factory in Bugolobi, a Kampala suburb, yesterday. PHOTO BY BRUNO BIRAKWATE
What you need to know:
The President notes that Uganda didn’t take advantage of the scheme, yet countries like Kenya are earning more from it.
Kampala- President Museveni yesterday admitted the country has dismally reaped from the free market provided for under the African Growth and Opportunity Act (Agoa).
Agoa was signed into law by the then US president Bill Clinton in 2000 to expand US trade and investment with countries in sub-Saharan Africa, among them Uganda.
Under the arrangement, Uganda would access the US market with minimum or no hassle.
Speaking during the commissioning of the $40 million (almost Shs110b) Fine Spinners factory yesterday in Bugolobi, a Kampala suburb, the President said despite his battles to pave way for Ugandans to export textiles products in US without being subjected to quota systems and tariffs, he is disappointed that the country hasn’t taken advantage of the opportunity.
“We have not benefitted from Agoa. Kenya gets about $300 million (about Shs832 billion) and Uganda gets less than $5 million (about Shs14 billion) out of the programme,” Mr Museveni said.
“South Africa, Mauritius and Lesotho all earn more than Uganda. Although I am happy that other African countries are benefiting, I would have been happier if Uganda benefitted too because we fought for it,” he added.
The President said all that will end given that he has now identified reliable investor, Fine Spinners.
“I am happy that I have found a serious investor now. I have tried before with people from Sri Lanka and Libya but it didn’t work,” Mr Museveni.
He also said government will subsidise power to players in manufacturing industry adding value. The President said electricity will be sold to manufactures at no more than $5 cents.
To implement this, Mr Museveni said the government is prepared to buy off Bujagali Power Dam which currently sells a unit of electricity at $11 cents.
In his speech, the director of Fine Spinners, Mr Jaswinder Bedi, said they would add value on the country’s cotton but are afraid that the supply may let them down, something the President said will never happen.
