The Independent Uganda: You get the Truth we Pay the Price
How Museveni’s eighth decade on earth, fifth in power, is placing Uganda’s future at a big risk
THE LAST WORD | ANDREW M. MWENDA | A Ugandan “businessman” called David Senfuka recently went to President Yoweri Museveni with a proposal. He told our president that he (Senfuka) had invented a medicine that cures cancer and diabetes. He added that the world’s richest man, Elon Musk, had offered him $50 billion to buy his patent, but Senfuka refused. Being a great nationalist, Senfuka wanted his invention to be produced in Uganda and owned by him, a Ugandan, not an African American upstart called Musk – (Musk was born in South Africa). He then suggested to the president that the government of Uganda give him capital worth $1 billion to build a world-class pharmaceutical plant in our country to produce these cancer and diabetes drugs.
Now Senfuka is not a businessman. I have talked to the people who know him, and without exception, they have told me that he is actually a conman. Besides, they have added, this great Senfuka is, in fact, not an educated man; he has perhaps completed primary school only. But like all conmen, he has great wit and knows best how to sell stuff. “He can even sell refrigerators to the Eskimos (Innuits),” one person who knows him told me. Museveni bought the story and ordered the government to find billions for Senfuka to build his pharmaceutical plant in Uganda. Some people tried to dissuade the president against throwing public money at this scam, but he wouldn’t listen. Senfuka’s claim may soon be cashed.
Yet Senfuka is not the only one to sell tall tales of groundbreaking and highly innovative inventions to Museveni and win a “lottery” from the financially crippled state of Uganda. Another “businessman”, a one “Dr” Matthias Magoola won his own lottery from Museveni and has even cashed it. Claiming to be a doctor, perhaps a witch doctor, Magoola is the founder and managing director of Dei Pharma, which the AI of Google, Gemini, calls “a major pharmaceutical and biotechnology company aimed at revolutionizing healthcare in Africa”. Apparently, Magoola’s “company” is going to produce mRNA, cancer, malaria and HIV drugs in Uganda.
With this tall tale, Magoola convinced Museveni to force the government of Uganda to give him Shs 735 billion ($200m) for this venture. Part of this money was supposed to clear a debt he owed Equity Bank worth Shs 250 billion. Instead, Magoola colluded with people at the ministry of finance. So, when money to clear this loan was released, it was sent to one of the multinational banks in Uganda, not Equity. The bank thus remained with a huge non-performing loan, which led to the firing of its CEO, Athony Kituuka. Magoola had once been arrested in India for fraud. This is the man the president trusted with public money worth Shs 735 billion to build Dei Pharma.
Now last month, March 9th, the president, during a heated meeting, literally forced cabinet to approve another $430m (Shs 1.6 trillion) for Magoola. I am reliably informed that when officials said the government did not have money, the president said angrily, “borrow it.” And so, the decision went through. Magoola’s $630m lottery from the government of Uganda is not unique. Enrica Pinetti got $376m (Shs 1.4 trillion) to build a hospital in Lubowa that Uganda does not need and cannot afford. Of this, Shs 925 billion was the money to build and equip the hospital; the balance was interest on the loan. Every expert I talked to and all other comparative projects showed that Uganda could have built and equipped Lubowa for one third of that money. But Museveni forced cabinet to accept it.
Projects of this type have proliferated in the last few years. We pumped Shs 200 billion into Roko after the company went bankrupt. Then we have invested $89m (Shs 400 billin) into a coffee plant owned by my friend Nelson Tugume in Ntungamo. Last month, the president got cabinet to approve another $79m (almost Shs 300 billion) as extra cash for this company. Then we have given Atiac Sugar Company, owned by my other friend, Amina, Shs 560 billion to produce sugar. I question the economic value of these projects, most especially the concentration of so much money in these few projects.
Even if these investments were good, the risk concentration is too high. The Ugandan government had, in the 1990s, adopted a policy of avoiding state involvement in the economy. In many ways, this policy was not good for a developing country which needed industrial policy to drive manufacturing. Such a policy would ensure the state helps raise capital to finance investment in manufacturing – directly as a productive agent in its own right, as in Kiira Motors, or as a source of venture capital for the private sector. Under such a policy, the prudent thing is to support many small startups, not a few big ones, as we are going right now. If Magoola and/or Senfuka fail, the loss to the country is huge. But if the money they were given was spread over 1,000 startups, the chance that 10% of these will succeed and become the next Apple or Huawei is reasonably high.
This brings me to the choice of the title of this article. Museveni has grown old. He has become less able to rigorously assess the economic and business viability of the ideas and projects sold to him by the myriad wheeler dealers who surround him like vultures do an animal carcass. Worse than that, when he has made up his mind on these proposals, he is less inclined to listen to contrary views and opinions. At 81 years and having worked all his last 40 years under conditions of extreme pressure, the intellect is giving way to stubbornness. As a result, project proposals of clearly dubious value get his approval without guardrails within the state to protect the national interest of the country.
Many Ugandans close to power have learnt this lesson. That the president is old and exhausted, both intellectually and physically. He has a limited ability to monitor many things across a large spectrum of sectors. So, they front individuals who sell him projects of dubious value, get blue letters instructing the government to release huge sums of money for these projects, then they earn huge commissions from them, and nothing happens. Because the persons involved are close to the president, they know that Museveni is disinclined to fight many wars at multiple fronts given his advanced age. Seeing that he is being duped right, left and centre by those closest to him, he just abandons the struggle. That is the state of Uganda.
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amwenda@ugindependent.co.ug
What of science teachers, musicians like Eddy Kenzo and others. But he has many advisors why doesn’t he consult them?
First, it is important to separate allegations from verified facts. Claims that individuals like David Senfuka or Matthias Magoola are “conmen” must be backed by credible investigations, not hearsay. In public policy, decisions should be judged on documented evidence, not personal testimonies or rumors.
Second, government investment in strategic sectors like pharmaceuticals is not unique to Uganda. Countries such as China, India, and South Korea used state-supported industrial policy to build their manufacturing and pharmaceutical capacity. Uganda attempting to invest in local production of medicines (including vaccines and cancer drugs) can be seen as part of a long-term strategy for self-reliance, especially after lessons from global crises like COVID-19.
On Dei BioPharma, it is a matter of public record that the company has:
Filed patents internationally
Engaged in research on vaccines and therapeutics
Built partnerships and attracted scientific personnel
These are verifiable steps toward establishing a biotech industry, even if the projects are still evolving.
Third, large-scale projects often appear expensive at the start because they involve infrastructure, research, and long-term capital investment. Comparing them to small startups is not always appropriate. A pharmaceutical manufacturing ecosystem requires billions in upfront costs, strict regulation, and time before returns are realized.
Fourth, regarding Yoweri Museveni, it is inaccurate to reduce policy decisions to age or personal decline. Many of these investments go through Cabinet, Ministry of Finance, and technical committees. While the president has influence, decisions are not made in isolation.
Finally, the argument that funds should instead be spread across many startups is valid in principle, but governments often pursue both approaches:
Large anchor projects (like pharma plants, infrastructure)
Smaller enterprise support (through funds, SACCOs, etc.)
The real issue is not whether government should invest, but how well these projects are managed, monitored, and audited to ensure value for money.
In total agreement. I got surprised (and really annoyed) when I saw him cynically referring to Dr Magoola as a ‘witch doctor’. Really? A doctorate in industrial Chemistry – with over 100 patents (many related to what Magoola is trying to set up) being equated to that from superstitions and concoctions?!! I think my dear bro M9, that was oveboard. Stop confusing the PhD with an MB ChB. In fact, in some countries the MB ChBs are not referred to as Drs! Also get to learn that the human body – or life in general, like many other physical things, is reliant on laws of Physics and Chemistry for its very existence.
On amounts of money received and accountability for it, you may have a point: But remember costs of ground-breaking innovations are always unpredictable. Should Magoola’s innovations of a total local integrated bio pharmaceutical industry value chain succeed (which it could – only if tried), the amounts spent become immaterial in the medium to longer term.
Magoola does not hold a PhD, whatever he is an honorary thing!
Sorry to say: This is disgusting – if at all the intention was to justify M9’s reference to Dr. Magoola as a witch. [otherwise take it I have not said what I am about to]. People, get serious: One does not do all the kind of research, innovation and apply them as has Dr Magoola, and is continuing to – and then people with less comparable works just yarp presumably out of fear of imagined future project failures. Where is Africa heading to – with such characters? Get me right: I also have fears but I know from own and other scientists’ experiences, that failures in the right hands are successes in the near future.
Andrew mwenda’s highlights focus more on how policies should be applied,rather than what is taking place presently.
2nd,individuals like the ones being pointed out have been at fault to the detriment of tax payers and other vulnerable communities.
3rd, we all know how those close to the president have taken advantage of his soft heart to hoodwink him into dubious deals including his own Brothers and in-laws with intentions of amassing wealth.
Lastly,there is no Policy which supports defrauding govts or better still causing loss to Govt all in the name of hugely bloated businesses investments,which at the remains white elephants with little or no return on investments.causing suffering to ordinary Ugandans especially the most vulnerable.
Thank you at Mwenda ,atleast for the last 5or so years you’re showing that true Son of the soil better still Oldman of the Clan as you prefer of late.
This is what we’ve been yawning for ,for sometime.
Thank you Andrew
But he is still younger that you who is “113”. Wink, wink!
Sir Andrew, the Big Man is intentional on powering the local scientific innovation sector to wean us off from dependence on exploitative and unpredictable foreign providers that have ripped us off in uncountable amounts ever since we got in contact with them. In reality, Innovators are in short supply. It’s concerning when the President is on tour or campaigns in the countryside and you see host leaders presenting him with gifts such as wooden spears, shields, stools, ebyanzi, etc. Really?!! In this age and era? Does he even have space to store them anymore? He should be presented with real innovations that solve real problems in the world. Not jokes! Andrew, there are innovations around which when the Big Man hears about them he will literally break the bank, and he should because if not, everytime a strait is blockaded somewhere we shall suffer.
Nevertheless, whoever gets supported must show cause at the end of the day. We shall be here to ensure that.
I think you are underestimating the old man, Andrew. It appears that the old man’s family is taking ownership shares in these companies using taxpayers’ money. At the very least these companies could be merely money conduits to the first family’s foreign bank accounts. The amounts involved are obscene. It is a shame.
I think you are underestimating the old man, Andrew. It appears that the old man’s family is taking ownership shares in these companies using taxpayers’ money. At the very least these companies could be merely money conduits to the first family’s foreign bank accounts. The amounts involved are obscene. It is a shame.
https://x.com/KagutaMuseveni/status/2058216230062833988?s=20
It’s getting clear there’s a conflict between The father and son. If the son is as wise as M9 claims, then M9 is his mouthpiece. Get popcorn
The real issue is not whether government should support local industry—it should. Every successful developing country, from South Korea to China, used strategic state support to build domestic enterprises.
The challenge is governance. Public investment must be based on transparent due diligence, independent technical assessment, accountability, and diversification of risk. Concentrating hundreds of billions in a few politically connected projects creates moral hazard and exposes taxpayers to massive losses.
A smarter industrial policy would spread capital across hundreds of promising SMEs and startups, with clear performance targets and regular audits. Development requires an active state, but it also requires strong institutions that protect public resources from poor decisions and elite capture.
Well said Andrew, we really need such conversations.
It’s really a disgrace, and it sweets more when comments are reserved that being blown