President Museveni has told the European business community to consider helping Africans financially to enable them consume goods and services to sustain the increasing production if they are to save capitalism.
The President said if the Europeans don’t solve the discrepancy between high production and low consumption, the world might end up in another capitalism crash like the great depression of 1929.
“If you produce and nobody consumes, then the business will collapse. That is why Africa comes in. That is why I want to welcome Europe from sleep,” President Museveni said at the Uganda-Europe Business Forum in Kampala yesterday.
Uganda-Europe Business Forum was an advocacy and networking meeting between the European business community and Ugandans, especially those in government and the private sector, on doing business.
Mr Museveni said 65 per cent of Ugandans are in subsistence economy, and, therefore, need to be helped to be part of the market economy.
“Economists like Maynard Keynes came up and said ‘you people you must look at aggregate demand’ and even said it is useful to get somebody to dig a hole and fill it again without producing anything, but you pay him so that he gets money and goes to buy,” Mr Museveni said.
He said Europeans established the welfare system where those who are not employed are given money to buy goods and services and they become part of the purchasing power.
He said the European business community investing in Uganda means accessing African, US, Chinese and European markets that have been ring-fenced from tariffs.
He said Africa’s population will be 2.5 billion in 30 years and this would be a big market for European investors if they help such a big number to join the market economy.
The President thanked the European Union (EU) for helping Uganda in the rehabilitation of the railway line from Tororo to South Sudan border, saying it will improve trade and transportation of cargo.
The head of EU delegation to Uganda, Ambassador Attilio Pacifici, said the EU companies in Uganda have created 32,524 jobs.
“This event marks a milestone in the economic relations between Uganda and the European Union. This illustrates that the European Union aims to do business and partner with Uganda differently as compared to the past,” Mr Pacifici said.