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Viewing cable 08KAMPALA588, UGANDAN PRESIDENT DECRIES EAC'S INFRASTUCTURE NEEDS

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Reference ID Created Released Classification Origin
08KAMPALA588 2008-04-29 07:35 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kampala
VZCZCXRO0376
RR RUEHGI RUEHRN RUEHROV
DE RUEHKM #0588/01 1200735
ZNR UUUUU ZZH
R 290735Z APR 08
FM AMEMBASSY KAMPALA
TO RUEHC/SECSTATE WASHDC 0267
INFO RUCNIAD/IGAD COLLECTIVE
RUEHXR/RWANDA COLLECTIVE
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 02 KAMPALA 000588 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE PLEASE PASS TO USTR FOR WILLIAM JACKSON 
TRANSPORTATION FOR D/S BARRETT, S. MCDERMOTT, AND  C. HUNTER 
TREASURY FOR VIRGINIA BRANDON AND DAN PETERS 
NAIROBI FOR FCS J. SULLIVAN 
 
E.O. 12958: N/A 
TAGS: ECON PREL ECIN EAID ENRG ETRD PGOV UG
SUBJECT: UGANDAN PRESIDENT DECRIES EAC'S INFRASTUCTURE NEEDS 
 
REF: (A) KAMPALA 475 
 
1.  (U) SUMMARY:  President Yoweri Museveni opened the "First 
Strategic Retreat for East African Community (EAC) Ministers" on 
April 17 by reminding his audience that China, which lacked 
political freedom, was nevertheless booming economically.  He 
decried the EAC's infrastructure deficiencies, including transport, 
energy, and information technology, and told local political leaders 
to figure out, and deliver, what Africa needed for economic growth. 
END SUMMARY. 
 
2.  (U) Department of Transportation Deputy Secretary Admiral Thomas 
Barrett, U.S. Trade and Development Agency (TDA) Director Larry 
Walthers, and Millennium Challenge Corporation (MCC) Vice President 
for Policy and International Relations Maureen Harrington attended 
the EAC Strategic Retreat on April 17.  Their objective was to sign 
a Memorandum of Cooperation with the EAC Secretariat for a 
transportation conference in the U.S. with EAC transport and 
infrastructure ministers and U.S. transportation officials.  (Note: 
The East African Community includes Kenya, Tanzania, Burundi, 
Rwanda, and Uganda.  All five countries sent several ministers to 
the retreat.  End note.) 
 
3.  (U) After tossing aside the 15-page speech he had planned to 
deliver, Museveni asked the audience why Asian countries had "taken 
off economically," while African countries had remained stagnant for 
over 40 years.  He said that those who suggested that a "lack of 
good governance" was holding Africa back were ignorant.  China, 
after all, had never held national elections, and that country had 
become an economic powerhouse of 1.3 billion people with over ten 
percent growth per year, he noted. 
 
- - - - - - - - - - - - - - - - - - 
Africa Needs an Energy Renaissance 
- - - - - - - - - - - - - - - - - - 
 
4.  (U) Museveni lamented the pitiful amount of electricity 
available to Africa's 900 million people, as compared to the U.S.'s 
total capacity of 800,000 MW for its 300 million people.  Uganda 
alone has less than 400 MW of total capacity, not nearly enough to 
supply the local growing energy demand.  (Note:  Maximum output on a 
given day is around 180 MW.  For the first several hours of the EAC 
retreat, the conference facility had no power.  End note.)  Museveni 
estimated that there could be an additional 4000 MW of hydropower 
generated from the Nile.  He asked Energy Minister Daudi Migereko, 
who was present at the speech, to estimate Uganda's demand growth. 
Migereko, clearly not expecting to be called on, stood up and 
responded with some discomfort that Uganda would need an additional 
48 MW per year in order to meet demand growth.  Museveni countered 
that Ugandans consumed 40 billion cubic meters of wood each year to 
meet their energy needs, which was the equivalent of 20,000 MW of 
electricity. 
 
- - - - - - - - - - - - - - - - - - - - - - 
Uganda is "Bashir-locked," not land-locked 
- - - - - - - - - - - - - - - - - - - - - - 
 
5.  (U) According to Museveni, Uganda is not land-locked, but 
"Bashir-locked."  He explained that the Nile River leads directly to 
the Mediterranean Sea, but the President of Sudan, Olmar Al-Bashir, 
forbade river transportation through his country.  Overall, 
infrastructure, which affected the cost of doing business, needed to 
be improved throughout the region.  According to Museveni, the 
railway that runs from Kenya through Uganda should be in a museum, 
and replaced with a railway that connects from South Africa to 
Ethiopia. 
 
6.  (SBU) Museveni said he had just learned that there were two 
types of roads: "poor country roads" and "rich country roads."  He 
realized this on a recent trip to Ghana, where he drove on a road 
that had not been replaced in 50 years.  When he asked how this was 
possible, as Ugandan roads only lasted a maximum of 15 years, he was 
told that it was a "rich country road," which were no longer built 
in Africa.  He called on Minister for Public Works and Transport, 
John Nasasira, also present at the speech, to start building "rich 
country roads" instead of "Nasasira, or poor country, roads." 
(Note: Minister Nasasira is the longest serving minister in 
Museveni's government, and is known for hugely inflated road costs 
and shoddy work.  End note.)  He also urged Public Works Ministers 
from other EAC countries to inform their political leadership of the 
different road types. 
 
7.  (U) Museveni thanked the U.S. for its assistance to regional air 
safety standards.  He criticized the high cost of air transportation 
 
KAMPALA 00000588  002 OF 002 
 
 
despite efforts to increase competition and liberalize the sector. 
He called on the East African Development Bank (EADB) to assist 
infrastructure development and suggested that the donors work 
together to support large regional infrastructure projects. 
 
- - - - - - - - - - - - - - 
"I Could be a Billionaire" 
- - - - - - - - - - - - - - 
 
8.  (U) Market size was a major impediment to growth, Museveni 
added.  He said that if he were operating "his small businesses" in 
India, he would be a billionaire.  (Note: Museveni has some dairy 
farms in western Uganda.  End note.)  "Demand equals desire plus the 
ability to pay," according to Museveni.  The region had plenty of 
desire but lacked the ability to pay, he stressed.  East Africa has 
a population of over 100 million "fragmented" people, and a total 
market size of just over USD 50 billion, as compared to the United 
Kingdom's market of USD 1.5 trillion, with only 60 million people. 
Museveni noted that India earns USD 40 billion, slightly less than 
East Africa's combined GDP, each year by outsourcing data processing 
and call centers.  Without broadband capabilities, and improved 
English training (he imitated a Ugandan child speaking 
incomprehensible English), the country could not capitalize on this 
potentially lucrative opportunity. 
 
- - - - 
Comment 
- - - - 
 
9. (SBU)  Museveni's candid speech reiterated his long-standing 
analysis of regional solutions to infrastructure problems among 
individual EAC member states.  His proposed solutions, such as 
calling on the EADB and donors to fund infrastructure projects, were 
less impressive than his description of the problems.  Museveni's 
public jibing at his two ministers present at the meeting might 
suggest that he expects action, but his continued tolerance of the 
incompetent and corrupt Public Works Minister belies his words. End 
Comment. 
BROWNING