HABARI DAILY I Kampala, Uganda I Uganda’s President Yoweri Museveni has commended Mehta Group for pioneering the sugar industry in Uganda.
He particularly thanked Mahendra Mehta and his wife for not giving up after the disappointment of Idi Amin.
“When we called them back, they came immediately,” he said on Saturday 12th October, 2024 while officiating at the centenary (100 years of existence) celebrations of Sugar Corporation of Uganda Ltd (SCOUL) in Lugazi Municipality.
SCOUL, the first sugar factory in Uganda was established in 1924 by the late Nanji Kalidas Mehta, the founder of Mehta Group.
President additionally congratulated Mehta Group for their resilience, determination and loyalty to Uganda.
“I want to thank and congratulate the Mehtas on two counts; number one, the elder Mehta who pioneered the Sugar Industry in 1924. I thank him and congratulate him, and I also congratulate Mzee Mehta who came to Uganda in 1952 after studies and started being engaged in the management of the group. That’s 72 years now, that is a good contribution,” he noted.
“I can attest to the loyalty of Mzee Mehta to Uganda. During Corona (Covid-19), I got information that Mzee Mehta was stuck in London, but he didn’t want to stay in London during that period. Although we were not allowing tourists to come, I had to issue a special permit for Mzee Mehta to come. So you fellows who like to go to London, Mzee Mehta and myself like staying here.”
Museveni further revealed that his Government’s wise decision to return properties to the Asians who had been expelled by former President Idi Amin played a crucial role in attracting the Asians to invest more in Uganda.
“Right now, the Mehtas are producing sugar, cables, and 16 megawatts of electricity from biogas. They are producing ethanol, biofertilizers and they are also growing roses,” he said.
He also directed that petroleum companies should start blending imported fuel with locally produced biofuel.
“In the meantime, as we are still importing petroleum, I now direct that all oil companies blend imported petroleum with the ethanol made by our people here. Secondly, I will also not allow the importation of cables, yet they are manufactured here with our raw materials.”
The President pledged to support Mehta’s horticulture and floriculture business.
He said the economy of Uganda had been able to grow progressively because of the correct ideology of the current government.
“Now, the big problems in the world but particularly in Africa have been mistakes on three fronts; philosophical mistakes, ideological mistakes and strategic mistakes.
For instance, on philosophical mistakes, one question that has been disturbing people has been what makes man work best? Some people have made mistakes on that, they have not answered it well. We have altruism, but these are the minority, but the majority of the people work for self-interest,” he explained.
“Therefore, when you are designing a strategy for the whole society, it is not correct to design as if the whole society will work under the basis of altruism. That is why there were a lot of mistakes in Africa in the 1960s when the private sector was not encouraged and in fact it was discouraged. Fortunately, by the time we came into government, we had clarified our views on this, and we put them in what we call the 10-point programme.”
He expounded that in their 10-point programme, they advocated for a private sector-led economy with the parastatals acting as a supplementary effort.
“We have parastatals like the National Water and Sewerage Company, Uganda Development Bank, National Housing Finance Bank, Post Bank and army companies which are doing very well,” he said.
He said the issue of the government nationalising private property which was common in Africa in the 1960s, this was definitely a mistake.
“Even if you are a socialist, it was not necessary to nationalise what the private people already had. You should have supported that, then if you want to start a parastatal you can do it separately,” he added.
He noted that Uganda now has more than 8,000 factories.
“When we set up Uganda Manufacturers Association in 1986-87, we started with only 80 factories, we now have more than 8,000, these are mainly private sector factories.”
President Museveni also thanked the Mehta Group for their Corporate social Responsibility in the areas of education and health care.
Additionally, he was pleased with Mehta Group for taking on his advice of growing their own sugarcane used in sugar production.
“Sugarcane is not a high value crop and our farm-holders have small acreage; four acres and less so to involve them in sugarcane growing is really to divert them from solving their own problems. The only people who can make money from sugarcane, maize and other crops are by using extensive agriculture. Therefore relying on out-growers was not a good strategy. I’m now glad you listened to me, and you now grow your own sugarcane so that you can stabilise your supply.”
Janet Museveni applauded the founder of Mehta Group, the late Nanji Kalidas Mehta for coming to Uganda at the age of 13 years to set up a sugar factory in the East African country.
“It sounds like fiction or a dream but this is what actually happened. I salute him because he demonstrated courage, persistence and must have been a special kind of a person,” she said.
“I want to congratulate the Mehta family on their contribution to the development of Uganda through their many different enterprises such as the sugar industry, Cement and building materials, electrical cables, horticulture and floriculture and many others. The Mehta Group is one of Uganda’s largest industrial conglomerates.”
Mahendra Mehta, the Chairman of Mehta Group, lauded President Museveni for creating an enabling environment that had enabled companies like Mehta to thrive in Uganda.
Mehta further informed the President that the group also plays an important role in the social development of the country through their various contributions to the education and health sectors.
The event was also attended by Ministers, Members of Parliament, among other invited guests.
