Uganda can reduce on Shs28 trillion spent on imports

Last week, the ruling NRM party celebrated its 32nd anniversary at Boma Grounds in Arua Municipality. The celebrations were premised under the theme: Uganda’s liberation struggle, significant contribution to our present and future development.

President Museveni mentioned cornerstones in his speech on which NRM strategic achievements are based. The pillars include ideological orientation, patriotism, pan-African values, social economic transformation, infrastructure and democracy.

The President made an interesting observation when he said: “Uganda is very wealthy, we are giving away jobs to other people’s children by importing $8b (about Shs28.8 trillion) worth of goods like these suits we are wearing, mobile phones, television and computers.”

The comment was interesting and strategically aimed at promoting locally made goods and services. The intention behind the remarks was commendable. It was aimed at encouraging the creation of jobs in a country where there is high unemployment.

There seems to be a renewed drive among world leaders to reduce unemployment by creating jobs. The recent trend seems energised by US president Donald Trump with his catchphrase “Make America Great Again”.
Trump’s strategic intentions of job creation for the Americans by promoting American goods and services seems to be working with unemployment being recorded at its lowest in 17 years at just 4.1 per cent, according to the American Bureau of Labour and Statistics.

In the American manufacturing industry, almost 24,000 jobs have been created under Trump’s administration. Interestingly, Trump’s employment efforts in the US economy cannot be given all the credit. Significant employment improvements originally started under former president Barack Obama, and have been supported by a combination of other economic factors of influence.

According to economist Cathy Barrera, other economic factors include technology improvements and also the weaker US dollar, making American exports more affordable for many countries. The implications are that since Uganda also imports from America, we are effectively giving away jobs and contributing to reducing unemployment in president Trump’s economy.

It’s difficult to imagine that in Uganda we are actually spending Shs28.8 trillion importing and enjoying the use of foreign-made items. Our desire, need for convenience and comfort defies reason and seems understandable for many families.

In this day and age it is simply accepted that almost every urban household strives to have mobile phones, computers and television sets. The old age assumption that in Uganda, we don’t have the capacity to locally manufacture goods such as computers and television sets that meets internationally acceptable standards could soon change, according to government’s aspirations.

Already in Uganda, there are motivating trends steadily emerging that contrast the misleading perceptions, especially in the manufacturing sector. There has been significant increase in locally produced goods being exported to regional markets. According to Uganda Export Promotion Board executive director Elly Twineyo, 10 years ago Uganda’s exports to the region were completely insignificant.

However, in 2017 Uganda gained almost $1b (Shs3.6 trillion) from exporting locally manufactured construction materials, compared to $10m earned 10 years ago. There is growing regional demand for Ugandan construction materials such as cement, steel and iron bars. These products are gaining popularity in regional markets such as western Kenya, DR Congo, South Sudan, Rwanda and Burundi.

The encouraging signs in the manufacturing sector could prove to be significant in absorbing high employment rates in Uganda. The recent initiative by NRM government banning excessive government official’s travels abroad is also a move in the right direction to end the free donation of Ugandan jobs to foreign countries.

Ms Victoria Nyeko is a media commentator.
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Twitter:@VictoriaNyeko