During a recent address in Buikwe, President Yoweri Kaguta Museveni provided a detailed explanation of the government’s stance on the minimum wage, linking it to broader economic stability and the protection of the Ugandan workforce.
The Logic of Timing: Production Over Regulation
Addressing concerns regarding low pay, the President clarified that while a minimum wage is on the horizon, its implementation must be handled with “guerrilla-style” precision. He argued that forcing higher wages before the economy is ready could lead to business closures and mass unemployment.
To create a sustainable environment for higher wages, the government is prioritizing the reduction of production costs.
The Four Pillars of Economic Readiness:
Security and Peace: Maintaining the foundational stability required for any investment.
Market Access: Expanding markets through the East African Community (EAC) to ensure investors have buyers for their goods.
Infrastructure: Lowering the cost of electricity and improving railway transport to reduce the overhead for manufacturers.
Affordable Credit: Working to lower bank interest rates so local businesses can grow.
”Introducing a minimum wage before fixing production costs would harm businesses and jobs,” the President noted, emphasizing that lowering the cost of doing business is the most effective way to eventually raise the standard of living.
Clarifying Land Rights and Mailo Land
Beyond labor issues, the President tackled the sensitive subject of land ownership, particularly the Mailo land system. To prevent the exploitation of tenants and ending illegal evictions, the President issued a directive to the legal wing of the government.
Key Directive:
The Attorney General has been tasked with publicly clarifying the rights of both landlords and tenants. This move is intended to eliminate confusion and ensure that no citizen is exploited due to a lack of legal knowledge.
A Sustainable Vision for Buikwe
The President’s message to Buikwe was clear: economic transformation is a sequence of strategic steps. By focusing on the “groundwork”—peace, markets, and low-cost infrastructure—the NRM government aims to build an economy where high wages are supported by high productivity rather than just legislation.
