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

You should have been here in 1989 and the years since. It is Uganda’s moment, at the recommendation of the Western leaders of the global economy; The IMF and the World Bank sold privatization, sectoral and structural adjustment as a condition for aid.

Uganda took it on, especially the privatization part, with gusto. As is usual, what the president said became the gospel truth. It was said loudly over the hills with dramatic ornaments.

It so happened that public companies were “dens of thieves”, havens of dead wood and the abode of nepotism and tribalism; with chiefs employing their girlfriends, clanmates, relatives, friends and in-laws. They had to be sold very quickly. They drained the economy. After all, the government had no business doing business because it was a bad businessman. That the private sector would stimulate unlimited growth, leading to greater efficiency, revenue collection and a significant decrease in borrowing.

This was essential for self-reliance and the growth of an independent, inter-graded and self-sustaining economy, which was one of the key issues of the 10-point programme. The government would save a lot of money to be used in other pressing areas such as service delivery in health, education, housing and infrastructure development. So all those parastatals including Coffee Marketing Board (CMB), Produce Marketing Board, Uganda Commercial Bank, Uganda Airlines, Uganda Railways etc went out the window.

It is worth noting that beyond the rhetoric something very significant happened. Most of the privatized entities had lots of property, including houses and vehicles that many in the NRM sold themselves for a song. There were more in Mombasa for WBC and in London. Vehicles, too, and anything of value went that way.

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

When they found out they landed on a bummer, they dropped it like a hot potato and refused to pay for it. In other cases, the government would finance those entities even by buying shares. In reality, when those in power found that what they “grabbed” was more complicated and imposing than they imagined, they went through the back door and made the taxpayer pay back and take care of the losses their.

To date, no comprehensive accountability has ever been made for the sale of those national assets that were considered liabilities by some of those who benefited from the sales. Then, along the way, the government started the trend of forming public companies called authorities and agencies. These would help streamline and regulate government activities in the economy. The Uganda Coffee Development Authority (UCDA) has come to life. He fulfilled many of the roles that the late CMB used to fulfill.

Again, it was to create greater efficiency, especially where the private sector was not very strong, save money, grow the economy, increase exports, plus revenue collection, while reducing corruption and red tape. These were pretty much the things that were said when Uganda was being privatized.

Again, the President spoke out on this new trend, and the praise singers left him even louder. But what is important to note is that most of the ills that the government has tried to cure whenever it changes its seat simply remain. Some even get worse. You still have nepotism and tribalism in the recruiting process like you had in the dens of thieves. 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 represents about a third of the revenue collected during that period. The government did not stop borrowing. In fact, it has increased its appetite for loans and foreign aid. The infrastructure has not improved much if you compare the amounts borrowed and the income collected over the years. You can see this in the many potholed roads, the collapse of domestic rail and air transport, dilapidated schools and hospitals, etc., as new roads and dams have been built at exorbitant costs.

Now the government is slowly reviving “important engines of the economy”. Uganda Airlines is back with a bang and with some of the very old habits, missing government interference and alleged misuse of funds, which privatization tried to remedy.

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

The president “regretted” heeding the advice that led to the sale of UCB, the largest indigenous bank at the time, in what many called a move. His brother, General Caleb Akandwanaho, aka Salim Saleh, was caught up in that controversial sale. Now we have moved on to “streamlining” and merging government bodies.

The president says he plans to save the country from duplication of services, corruption and inefficiency. The idea came from a study conducted by Operation Wealth Creation (OWC), which is headed by Salim Saleh. They hope to save the country a whole trillion shillings a year in spending and do all the other things they have always promised privatization and bringing government back into the economy.

To sell the point, we are now being told by the parrots, that the UCDA is corrupt and that coffee is not as big a deal to the economy as Madhivani or Metha, the sugar barons. The problem for the new policy for the government is that it has a very poor track record when it comes to the promises that come with its eye-catching changes. It even seems very controversial at times.

At privatization it was argued that the government had no business doing business and was a bad businessman. What has changed since then that will make ministries do better than anything else? Things tend to stay the same or get worse. People interested in the now profitable production of coffee are alive to what happened to crops like vanilla, cotton, sugar cane, tea and the fishing industry after the government came up with improvement policies. Things tend to favor those in power or their cronies, which include a lot of foreign investors.

They create monopolies that get bailouts and other exemptions that disadvantage locals and ultimately put them out of business. It’s these bad habits that don’t change that spoil the coffee’s flavor.

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