During his address at the World Bank’s International Development Association summit for African Heads of state in Nairobi, Kenya, President Yoweri Museveni of Uganda openly criticized global leaders.
Museveni pointed out that many of Africa’s current challenges, which were predicted over six decades ago, stem from philosophical, ideological, and strategic economic errors.
He accused the World Bank and other Western institutions of providing aid primarily for profit-making purposes.
“The crises facing Africa today are not accidental but a result of philosophical, ideological, and strategic economic blunders dating back to the 1960s. The aid given has often been geared towards profiteering. I appreciate the World Bank’s shift towards discussing prosperity rather than profiteering”, remarked Museveni.
He argued that the key to Africa’s progress lies not in the sustainable development often advocated by the World Bank and other major players in economic advancement but in social and economic transformation.
Museveni urged for a departure from the focus on sustainable development and emphasized the necessity for profound social and economic changes to propel the continent forward.
“Africa does not simply require sustainable development. What Africa truly needs is social and economic transformation. The hindrance to growth is the lack of financial backing and comprehension of growth catalysts. We talk about private sector expansion, but what is essential for its growth? The primary requirement is low production costs”, he elaborated.
According to Museveni, the underdevelopment of Africa can be attributed to the neglect and misunderstanding of growth factors by the Western world.
He emphasized that for Africa to attain enhanced development and autonomy, the private sector must receive adequate funding. Enhancing funding for the transportation, power, and agricultural sectors would lead to reduced production expenses.
“Finance ministers, what are the critical elements for lowering production costs? Transportation is paramount. To achieve low transport costs, investments in railways are essential. Without proper funding for railways, achieving cost-effective transportation is impossible”, he proposed.
“IMF representatives, how can low-cost operations be sustained without sufficient railway infrastructure? The development of Africa hinges on funding the railway systems. The construction of railways has been minimal in Africa, with notable projects spearheaded by China”, he highlighted.
Turning to electricity as another cost driver, Museveni emphasized the importance of affordable electricity to fuel development, citing Uganda’s target of maintaining electricity costs below 5 cents per kilowatt-hour.
Expressing his frustration over the reluctance of the World Bank and Western leaders to finance crucial projects like the Uganda Development Bank, Museveni, who has led Uganda for over four decades, criticized the swift approval of loans for trivial matters while significant projects face obstacles.
“Loans for capacity building, but for what purpose? They label dining events as capacity building. True capacity building should be practical, not confined to seminars. Secondly, the focus should be on electricity. Lastly, I seek support for our Uganda Development Bank, aimed at funding manufacturers, instead of redirection to commercial banks that favor imports”, he lamented.
“I have been advocating for funding for irrigation to stabilize agriculture in Uganda. Despite the country’s agricultural richness, securing irrigation loans is challenging compared to the expedited approval for seminar funding”, he added.