President Yoweri Museveni has called for the rationalization of various government agencies and authorities, describing them as “parasitic” and lacking value for money.
He emphasized the importance of eliminating redundant and irrational structures in the government to save significant resources and streamline operations.
In his written speech posted on his official X platform on October 28, 2024, President Museveni argued that the rationalization process is aimed at cutting out inefficiencies in government structures, particularly those that consume funds without producing tangible benefits. He cited historical examples, including the transition from feudalism to private-sector-led growth in Europe, as evidence of the benefits of rational economic reforms.
Museveni criticized several government bodies, such as the Uganda National Roads Authority (UNRA), for operating as money-consuming entities with limited accountability. He pointed out that many of these agencies have Boards of Directors, which he deemed unnecessary for non-profit-generating units, describing them as an irrational use of government funds.
“UNRA was totally dependent on the government budget,” Museveni said. “Their job was to award contracts for road construction using money given to them by the budget with a Board that had to be paid.”
The President’s address included references to historical figures like Adam Smith and biblical teachings to illustrate the long-recognized value of private-sector growth. He drew parallels between his own experience managing family properties and the need to separate ownership from management in government enterprises.
Museveni shared his personal journey managing his family’s farms, noting how the growth of their properties led to a division of responsibilities among family members. He suggested that a similar model should be applied to the management of public enterprises, advocating for a clear distinction between ownership, management, and oversight to ensure efficiency.
Museveni highlighted a 2017 study led by Gen. Salim Saleh, which revealed that the proliferation of off-structure, non-revenue-generating agencies was costing the country approximately UGX 2.2 trillion annually. He illustrated this loss by comparing it to the cost of constructing major roads, suggesting that the funds wasted could have built several vital infrastructure projects.
In particular, he criticized the performance of organizations like NAADS (National Agricultural Advisory Services), UCDA (Uganda Coffee Development Authority), and UNRA for failing to deliver on their mandates. He accused them of benefiting a select few while neglecting the broader population.
“The problem could be the usual one the NRM has always had with the parasitic elite groups versus its mass-line,” he said.
Museveni announced plans to maintain only those government companies and agencies that are revenue-generating, such as Uganda National Electricity Company Limited, National Housing Corporation, and others that operate on behalf of the Ugandan people. He emphasized the need for proper oversight through competent Boards of Directors, based on expertise and professionalism, to ensure profitability and sustainability.
Regarding agencies that regulate quality and safety, Museveni proposed centralizing these roles under existing ministries or a single agency for efficiency. He criticized UCDA for reintroducing export taxes, calling it irrational and suggesting the funds were used to sustain inefficiencies.
As part of his plan to streamline government spending, Museveni hinted at the absorption of agencies into relevant ministries, where specialized units will continue their work without the added cost of Boards and extra management layers. He mentioned the possibility of consolidating regulatory functions for food and drugs to prevent unnecessary fragmentation.
By eliminating unnecessary layers, the government expects to redirect funds to more critical areas, ensuring that public resources are used for development and not consumed by bureaucratic structures.
In his closing remarks, Museveni reiterated his call for efficiency and urged the public to support his drive to cut down on government waste, aiming for a future where public resources are maximized for the benefit of all Ugandans.
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