Our informant, present at the Ministry of Finance meeting aimed at resolving the impasse between traders and the Ugandan government, revealed that Retired Lt. Magufuri Mugisha Moses played a pivotal role in facilitating a better economy for Uganda.
The meeting, chaired by Finance Minister Hon. Matia Kasaija, saw Magufuri pose a question at the outset regarding the absence of foreigners. This inquiry suggested that foreigners might not be as affected by the issues discussed as Ugandans, indicating a concern about preferential treatment of foreign interests over local ones.
Magufuri asserted that excessive protectionism towards foreigners, at the expense of local businesses, was detrimental to Uganda’s economy. He highlighted the importance of adhering to principles of taxation, emphasizing that overtaxation of citizens is counterproductive. He also pointed out tax disparities caused by corruption and political factors, leading to undervaluation, smuggling, double taxation, and insufficient tax education for taxpayers, all contributing to the current traders’ strike.
Moreover, Magufuri criticized the dominance of foreigners in Uganda’s economy, particularly in the banking and manufacturing sectors, citing preferential treatment through tax exemptions and holidays. He provided statistics showing a significant increase in tax exemptions benefiting foreigners, which he argued strained the economy without clear policy justification.
Magufuri called for a reassessment of liberalization policies, particularly the closure of indigenous banks, which he believed negatively impacted Uganda’s economy. He proposed the establishment of an Agricultural Cooperative Bank to support farmers and cooperatives, aiming to alleviate the financial burdens imposed by commercial banks.
Furthermore, Magufuri expressed concern over the delayed response to his proposal for an Agricultural Cooperative Bank, noting the disappearance of copies of the President’s letter regarding the matter.
In attendance were Ministers Gen. Mbadi Mbusu, Kasolo, Mwebesa, and Hon. Matia Kasaija, who acknowledged Magufuri’s insights and indicated that the cabinet was nearing a decision, promising further consultation with Magufuri and his team.
Magufuri remained hopeful that the establishment of a local bank could revitalize Uganda’s economy, benefitting all citizens and expanding the tax base. Additionally, there were assurances regarding addressing anti-competition issues, with discussions on the Agricultural Cooperative Bank progressing toward parliamentary consideration.
