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High Commissioner's Message

Politics and Democratisation

Politics and Democratisation The country has taken great strides in the democratization process. A home-grown Constitution was promulgated in 1995 following the deliberations of a Constituent Assembly, a body whose representatives were directly elected by the people through universal adult suffrage. Ugandans were empowered to choose the form of political governance. They chose the Movement type of governance that was enshrined in the 1995 Constitution. This system emphasizes individual merit as the sole criterion for anyone vying for political office. One does not stand on a political party platform.

His Excellency President Yoweri Museveni

In our experience, parties tended to divide the people on political, religious, and ethnic grounds.

Politics and Democratisation

The country has taken great strides in the democratization process.

A home-grown Constitution was promulgated in 1995 following the deliberations of a Constituent Assembly, a body whose representatives were directly elected by the people through universal adult suffrage.

Ugandans were empowered to choose the form of political governance. They chose the Movement type of governance that was enshrined in the 1995 Constitution. This system emphasizes individual merit as the sole criterion for anyone vying for political office. One does not stand on a political party platform. In our experience, parties tended to divide the people on political, religious, and ethnic grounds. However, Parties are allowed to operate in Uganda.

The Constitution also provides for consulting the people through a referendum at specified periods, on what system of governance they want: whether Multiparty, Movement, or any other type. In our view, this is the ultimate form of democracy. In a national referendum held in 2000, the people chose to continue with the Movement type of governance.

A decentralised system of government has been put in place. Considerable powers have devolved to districts to run their affairs in areas such as resource allocation, infrastructure, education and health. District political leaders known as L.C.V. Chairpersons are elected by universal adult suffrage.

Special interest groups such as the women, youth, people with disabilities, Army, and Trade Unions are represented in Parliament. The democratic space has therefore been
widened for everybody to participate.

We continue to take stock of the democratic practices and arrangements we have put in place with a view to improving on them. In this regard, a Constitutional Review Commission has been put in place and is currently soliciting views from the public on how to make the current democratic dispensation even better.

Economy
On the economic front, tremendous achievements have been made. We have liberalised our economy, privatised public enterprises, and generally put in place sound macroeconomic policies. As a result, Uganda 's economic growth has averaged 5-7%of GDP for over a decade, with inflation in single digits. We have also put in place an attractive investment regime. For instance, in 2000/2001 Uganda attracted US$254m in foreign direct investment (FDI). The leading sources of FDI are: U.K. with 25%, South Africa 12%, Kenya 7.5%and Canada 5%. In the field of education, since the introduction of Universal Primary Education (UPE) in 1997, primary school enrolment increased from about 2.7 million to over 6 million at present.

Kenya/Uganda Relations

At a bilateral level, Uganda and Kenya enjoy excellent relations that continue to flourish. The two countries co-operate closely in political and economic fields as evidenced by frequent meetings of the Heads of State, Ministers, and other officials. This Mission has also fostered interaction between business communities of both countries.

Trade and Investments

Uganda is Kenya 's number one export destination. It also experiences a trade imbalance in favor of Kenya. Uganda mainly exports hydro electricity and agricultural produce to
Kenya. Our electricity exports to Kenya will increase to a total of 80MW when the ujagali
Hydropower project on the Nile is commissioned in 2006. Through increasing Uganda 's exports to Kenya, this imbalance can be reduced for our mutual benefit.

In the last four years, Uganda 's exports to Kenya have increased by 7%. As of now,
Government is encouraging the private sector to invite Kenyan expertise in sectors such as horticulture, manufacturing, tourism and agro-business. A number of Kenyan expatriates are working in Uganda in various sectors, and occupy senior management positions in Ugandan companies. Their presence in Uganda has contributed to the development of strong trade relations between the two countries.

In order to cement our bilateral relations further, I have toured several Provinces in
Kenya to familiarise myself with the people, meet farmers and businessmen and to put them in touch with Ugandans of similar interests while exploring markets for each other's products.

These working tours have resulted in a number of Kenyan delegations visiting Uganda to meet their counterparts.

Regular investment and trade Missions to Kenya have proved successful in that a number of Kenyan companies are looking positively at Uganda as an alternative suitable location. The rapid growth of Uganda 's financial sector and its enormous agricultural potential as well as the service sector are prime areas for Kenyan firms.

At present the estimated total investment by Kenyan firms in Uganda is over US $200 in sectors such as manufacturing, mining, transport and communication, tourism, professional services, and fish processing.

Kenya 's participation in the Annual Uganda International Trade Fair is commendable. In 2001 over 33 Kenyan participated in the Fair.

In order to increase the volume of trade, a Memorandum of Understanding between the
Uganda National Chamber of Commerce &Industry (UNCCI) and Kenya National Chamber of Commerce &Industry (KNCCI) on the establishment and development of a joint East Africa Chamber of Commerce has already been signed. It is aimed at enhancing joint co-operation and promoting a stable and transparent business environment for regional trade and investment. It also recognizes the role and participation of the joint Chamber of Commerce in the multilateral trading systems of the World Trade Organisation (WTO).

Transport and Communications
The two Governments are committed to supporting the least cost mode of Transport for
petroleum products from Mombasa to Kampala. An extension of the Oil pipeline has
been agreed upon to be undertaken as a single project from Eldoret through Malaba, Jinja and terminating in the West of Kampala.

Its capacity will be 1200m litres per annum. What is remaining are details on the logistics and funding of the project. The Government of Uganda has pledged an initial amount equivalent of 5%of the estimated capital cost of the project.

Due to the increase in volume of trade between Uganda and Kenya, more people are traveling between the two countries. Many Bus Companies have come in to facilitate movement between Kampala and Nairobi. These include Akamba, Buscar, Gateway
and Scandinavia. Bulky products such as coffee, tea, cotton, timber and minerals are exported from Uganda by rail and road.

In July 2002,Mr.Evans Asiimwe was appointed as Uganda 's Honorary Consul resident in Mombasa, which is Uganda 's main gateway to the Sea. He has assisted Ugandan importers and exporters in solving problems t h a t used t o be encountered during the course of clearing their goods.

The launch of daily return flights from Entebbe to Nairobi by AfricaOne, a new Ugandan registered private airline, took place in September, 2002.People who travel between Nairobi and Entebbe now have a choice. The competition on this route will no doubt result in reduced fares, and better service.

Finally, I wish to reiterate Uganda 's strong commitment to the realization of an East African Customs Union, Free Trade Area, and eventually a Political Federation.
We look forward to the integration o f our regional economies as the only sustainable way of affording our countries and people an opportunity to exploit the existing
investment and trade potential for economic growth and development.

Happy Anniversary.

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