Gertrude K Othieno
Elon Musk once said governments “make money out of thin air.” His point was simple: printing money or giving out funds does not automatically create wealth. Real prosperity comes from hard work, production, and investment in things that grow over time.
In Uganda, the government has introduced the Parish Development Model (PDM), Emyooga, and GROW to help ordinary citizens build businesses and create jobs. President Museveni believes that if Ugandans embrace these programmes, they can transform their lives. But even if challenges such as corruption, theft, and nepotism were eliminated, would these programmes truly lead to wealth and employment on a large scale?
The reality is that while these initiatives provide opportunities, Uganda’s economic environment, global financial conditions, and market challenges must also be considered. Most of Uganda’s imports—fuel, fertilisers, medicines, and even packaging materials—are priced in US dollars. This means that when the US prints more money or raises interest rates, it affects Uganda in ways many people do not realise.
For farmers under PDM, if the US dollar strengthens, fertiliser, seeds, and farm equipment become more expensive. Even if a farmer grows more maize, high transport costs due to fuel prices make selling it more difficult. The money received from PDM loses value, meaning it does not go as far as expected.
For small business owners under Emyooga; tailors and carpenters import materials such as fabric, zips, wood, and nails—all of which cost more when the dollar rises. Shopkeepers find that many products they sell have become too expensive, making customers buy less. Those who took loans struggle with higher repayment costs, forcing some to shut down businesses.
Many women in GROW import products for resale, meaning their buying power weakens as prices go up.
Would these programmes work if corruption was eliminated? Many Ugandans believe that corruption is the biggest reason why government programmes do not work.
While corruption, theft, and nepotism must be addressed, these programmes still face other barriers that go beyond mismanagement, including high cost of imports, limited local demand, small market access, lack of infrastructure. Also, poor roads, electricity shortages, and weak internet access make it hard for businesses to grow.
Even if corruption was eliminated, money alone cannot fix these issues. Real transformation requires economic reforms, stronger local industries, and access to bigger markets.
Even though Uganda cannot control the US dollar, there are ways that beneficiaries of PDM, Emyooga, and GROW can adapt and thrive. Farmers can reduce reliance on imported fertilisers by exploring organic options made locally, such as compost or bio-fertilisers.
Reduce dependence on imported materials – tailors, carpenters, and soap makers should explore locally made fabrics, timber, and oils to cut costs. There is need to form business cooperatives – working in groups can help small businesses buy supplies in bulk at lower prices and negotiate better deals.
Expanding to digital and regional markets is also important. Instead of relying only on local buyers, businesses can explore online sales and regional trade to reach more customers. It is also important to note that improving financial literacy is essential as many small businesses fail because owners lack money management skills. Business training should be a core part of these government programmes.
What should the government do differently? For these programmes to create lasting wealth and jobs, the government must support local manufacturing as investing in local industries that produce farm inputs, packaging materials, and tools would make businesses less dependent on expensive imports.
Uganda should also work with East African neighbours to trade using local currencies instead of relying on the US dollar. Uganda should encourage public-private partnerships, improve transport and market access, thereby strengthening accountability.
Money alone is not enough. Elon Musk’s warning about “money out of thin air” applies to Uganda today. Simply giving people money without solving the deeper economic problems will not lead to real transformation. Even if corruption was eliminated, high costs of doing business, reliance on imports, and limited market access would still limit the success of programmes. For government funding to create true wealth, Uganda must invest in production, value addition, and regional trade.
The challenge is not just about receiving money—it is about turning that money into lasting opportunities. The question is: will Uganda take the harder but more rewarding path to real economic independence, or will we keep chasing short-term cash handouts?
Ms Gertrude K. Othieno is a critical political sociologist (London School of Economics - Alumna)
Email: [email protected]
