Coffee: The more things change, the more they stay the same

So it was that public enterprises were ‘thieves’ dens’, havens of dead wood and the abode of cronyism and tribalism; with bosses hiring their girlfriends, clan mates, relatives, friends and in-laws. They had to be sold very quickly. They were draining the economy. After all, the government had nothing to do with business because it was a bad businessman. That the private sector would drive limitless growth, leading to greater efficiency, revenue collection and a significant reduction in borrowing.

This was the key to self-reliance and growing an independent, interconnected and self-sufficient economy, which was one of the key issues in the 10-point programme. The government would save a lot of money to be used in other urgent areas such as healthcare services, education, housing and infrastructure development. So all those parastatals went out the window including Coffee Marketing Board (CMB), Produce Marketing Board, Uganda Commercial Bank, Uganda Airlines, Uganda Railways, etc.

It’s worth noting that beyond the rhetoric, something very important happened. Most privatized entities had many properties, including houses and vehicles, which many in the NRM sold to themselves for a small amount of money. There was also more in Mombasa for CMB and in London. Vehicles and everything of value also went this way.

Many of the privatized entities were also quietly taken over by people in government, directly or through proxies. Privatization then seemed like personalization. I remember the late John Nagenda and his charm Eriya Kategaya benefited from such an industry.

When they found out they had landed on a dud, they dropped it like a hot potato and refused to pay for it. In other cases, the government would finance those very entities and even buy back shares. When those in power discovered that what they had “seized” was more complicated and burdensome than they had imagined, they actually went through the back door and made taxpayers pay back and absorb their losses.

To date, there has never been comprehensive accounting for the sale of those national assets that were dismissed as liabilities by some who benefited from the sales. Gradually, the government started the trend of forming government-owned enterprises called authorities and agencies. These would help streamline and regulate government activities in the economy. People like the Uganda Coffee Development Authority (UCDA) came to life. It filled many of the roles that the defunct CMB filled.

Again it was intended to create greater efficiency, especially where the private sector had not been very strong, to save money, grow the economy, increase exports, plus revenue collection, while reducing corruption and bureaucracy were pushed back. These were almost exactly the things that were said when Uganda privatized.

Once again the president spoke out about this new trend and the praise singers echoed him even louder. But what is important to note is that most of the ills that the government has tried to cure when it changes seats remain. Some even get worse. You still suffer from nepotism and tribalism in the recruitment process, just like in the thieves’ dens. Corruption has reached epidemic proportions. The Office of the Ombudsman says about Shs10 trillion goes into the pockets of the corrupt every financial year.

This is approximately one-third of the revenue collected during that period. The government has not stopped borrowing. In fact, it increased his appetite for loans and foreign aid. The infrastructure has not improved much if you compare it with the amounts borrowed and the revenue collected over the years. You can see this in the numerous potholed roads, the collapse of rail and domestic air transport, dilapidated schools and hospitals etc. just as new roads and dams have been built at exorbitant costs.

Now the government is slowly reviving ‘important drivers of the economy’. Uganda Airlines came back with a bang and with some of the very old habits lacking government interference and alleged misuse of funds, which privatization tried to remedy.

The government has notified Umeme, the power distributor that replaced the Uganda Electricity Board (UEB). The government will deal with these matters in 2027.

The president has “regretted” listening to advice that led to the sale of UCB, the largest indigenous bank, for what many called a pittance at the time. His brother General Caleb Akandwanaho, also known as Salim Saleh, was involved in that controversial sale. Now we have turned to ‘rationalization’ and merging of government agencies.

The president says he intends to save the country from duplication of services, corruption and inefficiency. The idea emerged from a study conducted by Operation Wealth Creation (OWC), led by Salim Saleh. It hopes to save the country a trillion shillings a year in expenditure and do all the other things that privatization and government re-entry into the economy has always promised.

To sell the idea, we are now being told by the parrots that UCDA is corrupt and that coffee is not really as big a thing for the economy as Madhivani or Metha, the sugar barons. The problem with the new government policy is that it has a very poor track record when it comes to promises accompanied by loud changes. Sometimes it even seems very controversial.

At the time of privatization it was alleged that the government was not doing business and was a bad businessman. What has changed since then that makes ministries outperform everything else? Things usually stay the same or get worse. The people interested in the now lucrative coffee production are aware of what happened to crops like vanilla, cotton, sugarcane, tea and in the fisheries sector after the government came up with policies for improvement. Things usually favor those in power or their cronies, including many foreign investors.

They create monopolies that benefit from bailouts and other exemptions that disadvantage locals and ultimately bankrupt them. These bad habits that do not change spoil the smell of the coffee.

Mr Sengoba is a commentator on political and social issues
Twitter/X: @nsengoba