Uganda established a strong record of prudent macroeconomic management and structural reform between the 1990 and 2000s. It was among the first Sub-Saharan African countries to embark on liberalization and pro-market policies in the late 1980s. During that time, a stable macroeconomic environment and sustained private sector-oriented reforms led to Uganda’s graduation into a mature reformer in 2006.
Real gross domestic product (GDP) growth averaged 7% per year in the 1990s and the 2000s. This was well above the Sub-Saharan Africa average, in spite of consecutive exogenous shocks, including the secondary effects of the global economic crisis, bad weather and surges in international commodity prices. This strong economic growth enabled substantial poverty reduction and some progress towards reaching Millennium Development Goals (MDGs).
The population of people living in poverty declined to 24.5% in 2009/10. Hence, Uganda has surpassed the 2015 Millennium Development Goal of halving the 56% poverty rate recorded in 1992/93, in spite of per capita GDP growth averaging only about 4% over the past two decades due to rapid population growth. Since 2009, a combination of exogenous shocks and domestic factors reduced economic activity below historical levels. Subdued export performance, high inflation and subsequent tightening of the monetary policy to restore macroeconomic stability, reduced GDP growth to 3.4% in FY12.
Economic recovery is on track and medium term growth prospects remaining positive. The high expectations for a strong recovery GDP growth as the economy stabilized in FY12/13 have been thwarted by the lower than anticipated fiscal outlays, slow private sector credit pickup, and the governance related aid disruptions which increased economic uncertainty.
GDP growth rose from 3.4% in FY12 to 5.2% in FY13. This is the result of fiscal and monetary adjustments implemented by the government since mid FY12, which helped to instill producer and consumer confidence through the stabilization of inflation and the domestic currency.
The medium term growth prospects remain strong for FY14 and beyond. Economic growth is projected to average about 6-7% over FY14-17 mainly driven by the services sector, productivity gains in the agricultural sector, energy and increased foreign direct investments (FDI) in extractive industries as well as increased trade with neighboring countries in the context of East African Community (EAC) regional integration. Core inflation, currently around 6.4%, is projected to remain subdued within single digits (averaging 5%), thanks to prudent inflationary targeting monetary policy.Fiscal policy has adapted well to evolving conditions of declining donor support, and the fiscal deficit has only widened slightly to 3.25% of GDP despite underperforming tax revenue efforts (12.5% of GDP).
On the external sector, the current account deficit (including grants) is projected to improve from 12% of GDP in FY12 to 10.4% in FY13 following declining imports and increasing non-coffee exports. The current account deficit is projected to average 12-14% of GDP over FY14-17 following the import needs related to major infrastructure projects in roads, oil and energy.
Following independence from British colonial rule in 1962, Uganda experienced a decade of relative political and economic stability. In 1971, a military coup led by Idi Amin sparked a trajectory of violence and mismanagement that reduced the country to a failed state and a collapsed economy. Political and economic turmoil continued between 1979 and 1985, with successive coups and a disputed election in 1980, resulting in civil conflict across the country. When the National Resistance Movement (NRM), led by Yoweri Museveni, took power in 1986, Uganda began a period of sustained economic and political renewal.
During the first decade of NRM rule, the government focused on restructuring the economy through pro-market reforms and increasing the legitimacy of government institutions through political liberalization. However, a brutal civil war waged by the Lord’s Resistance Army (LRA) in Northern Uganda left thousands dead and millions displaced, dampening economic activity and deepening poverty in the region. After protracted peace efforts, the LRA was pushed out of Uganda in 2005, and there have been no major security incidents since then. Economic activity has resumed in Northern Uganda, and most internally displaced persons have returned to their land, with the poverty rate falling from 60% in 2005/06 to 45% in 2009/10.
Uganda has progressed towards multi-party democracy and now holds regular elections. Following the promulgation of the 1995 constitution, President Museveni was elected to a first term through a non-party election in 1996. He was reelected in a contested election in 2001.
The constitutional amendments approved by a referendum in July 2005 introduced multi-partyism, and Parliament lifted the two, five-year presidential term limits, which allowed President Museveni to seek a third term in office. Museveni and his NRM Party won the first multi-party elections in 2006. On February 28, 2011 President Museveni was re-elected to yet another five-year term and his party enjoys an overwhelming majority in the 375-member Parliament. Recently, civil society groups have renewed their campaign for the restoration of presidential term limits in the Constitution and a private members bill has been presented to the Speaker of the National Parliament.
President Museveni’s current term in office has been characterized by increased opposition action and mounting parliamentary pressure on the government, especially over governance. Recent cases of large-scale corruption in some ministries reported by the Auditor General in November 2012 indicate that governance remains a major challenge for Uganda. However, a recent joint assessment by the Joint Budget Support Framework (JBSF) partners of the High Level Government Financial Management Reform Action Plan Matrix (HLAM), indicates positive progress. The ninth Parliament has also helped to check the powers of the executive. Parliament’s Public Accounts Committee, constitutionally headed by a member of the opposition, has remained strong in the fight against corruption.
On August 5, 2013 Parliament passed the Public Order Management Bill that requires a written note of planned meetings to be submitted to police a week in advance, and allows police to block or prevent a public meeting if they deem it a breach of the peace. The Bill has been widely criticized by different groups of people including opposition Members of Parliament, Civil Society Organizations, media among others.
The government is also working on amendments to the Public Finance Bill in an effort to introduce provisions for transparent petroleum revenue management, though awards of concessions and contracts remain opaque.
With a per capita income of US$506, Uganda remains a very poor country and far from the middle income status it aspires to achieve in one generation. Although Uganda is set to meet the first MDG to eradicate extreme poverty and hunger, a vast majority of its non-poor population are classified as vulnerable. The lower poverty headcount has yet to translate into gains in other welfare dimensions. There are concerns about uneven progress, with inequality increasing while there are distinct geographical patterns of unequal outcomes in health and education, and uneven access to basic social services.
In 2012, Uganda ranked 161 of 187 countries on the Human Development Index compiled by the United Nations Development Programme (UNDP). Estimates from the latest available Uganda National Survey show that in 2009/10, only 12% of households used electricity for lighting.
Despite many efforts to improve social sector outcomes; the chances of Uganda reaching all of the MDGs by 2015 are slim, as Uganda is off track on particular health-related MDGs. In the early 2000s, the government initiated a comprehensive program of health reforms to improve effectiveness, responsiveness, and equity in the health care delivery system, including abolishing user fees in government units, improving management systems, decentralizing service delivery and promoting public–private partnerships. These reforms have helped to improve the sector performance and outcomes. They are credited as being pro-poor, especially by improving access and reducing cost.
Uganda is also off track on the MDGs related to universal primary education despite reforms. Learning outcomes have been disappointing especially in reading and mathematics which are lower for Ugandan students than for Kenyan and Tanzanian students. However, gender equality prevails in school enrollment with little or no difference between net primary or secondary enrollment rates for boys and girls—near parity was reached in 2009/10.
To achieve higher development outcomes, Uganda’s economy has to transform to a higher productivity level while integrating all regions into the development process, a challenge which magnifies as the population swells. This transformation will hinge on how the country manages its resources, in particular the fast-growing and youthful population and the recently discovered oil. To reap the demographic dividend, Uganda must invest in fertility reduction, human capital formation, and productive employment creation. To reap the oil dividend, Uganda must maximize the social benefits through appropriate investment and prudent macroeconomic management, as well as transparency and management of expectations.
Perceived deterioration of governance and an increase in corruption (including the perceived growing culture of impunity for grand corruption and pervasive “quiet corruption”) threatens to tarnish Uganda’s image as a development model and challenge its future development efforts.
Last updated October 2013
Uganda’s Development Strategy
Uganda’s development strategy hinges on the five-year National Development Plan (NDP) FY2011-2015. The title of the NDP is “Growth, Employment and Socio-Economic Transformation for Prosperity,” to broadening the country’s development strategy from poverty reduction to structural transformation and aiming to raise growth and living standards. The NDP is the first in a series of six plans intended to transform Uganda into a modern and prosperous country over a thirty-year period. Launched in 2010, the current NDP is set to expire in 2015 and the two remaining years of implementation will be guided by the recommendation in the forthcoming Mid-Term Review.
At Uganda’s 50th Independence Anniversary celebrations in October 2012, President Yoweri Museveni outlined his renewed vision for the country focusing on 10 critical points:
Fighting ideological disorientation
Improving education to refine human resource
Facilitating private sector-led economic growth
Developing road, rail and electricity infrastructure
Market expansion through regional integration
Pursue industrialization for exports’ value addition
Develop the service sector to create jobs
Modernize agriculture to increase household incomes
Deepen democratic governance
In April 2013, the government launched the Uganda Vision 2040, an ambitious plan which aims to secure a gross domestic product (GDP) per capita of US$9500, a marked increase from the current US$506. The Uganda Vision 2040 will instill a series of five-and 10-year Development Plans.
Uganda joined the World Bank in 1963, one year after obtaining independence. Since then, the Bank has provided over US$8 billion in financing, with more than US$7.30 billion in loans and credits, and more than US$650 million in grants.
The World Bank’s current strategy is outlined in the Country Partnership Strategy FY11-15, which is firmly anchored in the government’s five-year National Development Plan (NDP). The CPS hinges on four pillars: support government efforts to promote inclusive and sustainable economic growth; enhance public infrastructure; strengthen human capital development; and improve good governance and value for money. It is estimated that during the CPS period, the International Development Association (IDA) will commit approximately US$2 billion to support development projects and programs in Uganda.
As of October 2013, the Uganda portfolio comprised 16 IDA-financed operations with a net commitment amount of US$1,472 billion. IDA is the arm of the Bank that lends to the poorest countries. In addition, there are four regional projects (environment, trade and transport, health and agriculture) with net commitments of US$94.0 million for the Uganda components. In line with government priorities, a rough 60% goes to infrastructure; around one third to education, health and the social sector; and another 7% to private sector development.
Uganda is also benefiting from a large trust fund portfolio (approximately US$80 million in grants) as a result of the Bank’s strategic collaboration with bilateral and multi-lateral development partners. Trust Funds, most of which are linked to lending operations, have focused mainly on agriculture; renewable energy, diaspora, education, private sector, electricity, health (piloting output-based aid in health), transport, governance, tourism and water supply (Global Partnership on Output-Based Aid).
The United Kingdom’s Department for International Development (DFID) has become a key partner in IDA’s Uganda program, providing co-financing to the Northern Uganda Social Action Fund II (US$39 million) and the Transport System Improvement Project (US$8 million); HIV Prevention Effectiveness Evaluation in Uganda (US$1.9 million) and Support to the Implementation of the National Development Plan worth approximately US$12 million. In addition, a multi-donor trust funding from Sweden, DFID, Ireland, Belgian, Norway, Australia, Denmark and Netherlands has been set up to fund various activities related to the Joint Budget Support Framework, including funding of a Technical Assistance and Support Unit. The established Trust Funds have helped to address donor aid limitations, and for some donors addressed limited presence and management gaps, by providing pooled financing in areas of public goods and national development issues with the Bank leveraging its competitive edge in supporting implementation of these trust fund objectives.
The Bank’s analytical and advisory activities underpin investment operations and sector strategies, and inform the government’s reform path. Recent analytical work includes a series of the Uganda Economic Updates launched in February 2013, which will be published twice a year. The first issue focused on regional trade and integration and the second and most recent economic update focused on jobs. Others include an economic and statistical analysis of Tourism in Uganda (2013); a synthesis report on promoting inclusive growth (2012) and a series of Public Expenditure Reviews focused on education (FY08), health (FY09), roads (FY10), and service delivery (FY13). Other reports such as the Public Finance Management in Uganda -- a Platform Approach (2008) with an assessment of fiscal decentralization, and the Public Expenditure and Financial Accountability Report (2009) have been critical in informing the reform agenda in public financial management. The World Bank is currently preparing a Country Economic Memorandum (CEM) that will specifically focus on how Uganda can attain a Middle Income Country Status by leveraging the recently discovered oil resources so as to promote diversified and shared prosperity. The CEM is intended to present policy options to the daunting challenge that policy makers are likely to face including maximizing the linkages between oil and non-oil sector while establishing institutional mechanisms to protect new revenue from rent-seeking and misallocation of resources.
The Bank’s Country Assistance Strategy Progress Review
On August 1, 2013, the World Bank’s Board of Executive Directors discussed and endorsed the progress report of the Country Partnership Strategy (CPS) for Uganda that will guide the support of the World Bank Group to the country for the remaining two years (2014-2015) of the CPS. An assessment of the progress against CPS outcomes showed a mixed performance (with less than 70% outcome indicators achieved or on-track) with diminishing returns under the Poverty Reduction Support Credit (PRSC) series, which has been under implementation for more than a decade. The Progress Report, however, confirms that the CPS outcomes can be achieved provided the Bank adjusts its lending instrument mix; and the Government of Uganda makes progress on two fronts—accelerating implementation and advancing governance reforms.
The progress report of CPS continues to be aligned with the Uganda Government’s 2010-2015 National Development Plan (NDP).
Over the remaining two years of the CPS, the Bank willfocus its interventions on fewer, larger and transformational projects with more emphasis on infrastructure, agricultural productivity and access to market, skills development that leads to more jobs, in addition to continued investments in the social sectors. More specifically, the Bank’s support to Uganda will be focused on the following three broad areas: transformational operations and related investments; selective development policy; and support Uganda’s governance efforts.
Uganda became a member of the IFC in 1963. As of October 2013, IFC has approved funding for over 50 projects in Uganda amounting to US$1.5 billion, focusing on i) improving the investment climate; ii) building up the capacity of Small and Medium Enterprises (SMEs) and micro-enterprises as well as institutions that can support them; and iii) proactive support to project development in the financial, agribusiness, and infrastructure sectors. The IFC will continue to business-enabling environment, public-private partnership (PPP) infrastructure advisory services, and access to finance for SMEs through the Africa small-medium enterprises program for selected commercial banks. Additional operations in the forthcoming years include heightened focus on agribusiness intermediaries, supporting upgrading and expansion of Umeme Ltd.’s power distribution network estimated to cost US$500 million over six years, finance sector development, infrastructure (including railways) and electricity generation companies. Among IFC’s recent commitments includes US$75 million financial support and mobilizing US$200 million for the rehabilitation and upgrading of the railways concession and a US$25 million loan to assist the expansion a Roofings Ltd’s steel coated zinc project at Namanve Industrial Park.
The IFC is also extending technical and advisory support to the government in addressing barriers to investment growth in the productive sectors, particularly in agriculture, health, tourism, energy, trade and communications. Currently, IFC has four active advisory services programs in Uganda targeted at simplifying and streamlining business processes to reduce the cost of regulation pertaining to business entry by 25% (business registration, obtaining construction permits and business licenses, paying taxes); increasing mechanization and productivity through lowering barriers for farmers and SME's to access farming equipment through agri-leasing; as well as increase the private sector's participation in Uganda's protected areas through tourism investment, generating jobs, park management revenue, increasing arrivals and tourist spend.
Uganda became a member of MIGA in 1992. As of October 2013, MIGA had a portfolio of three guarantees with a combined gross exposure of US$161 million. MIGA is supporting Globeleq Holdings (United Kingdom) with US$41 million in guarantees covering its equity investment in Umeme Ltd, the project company that has leased the electricity distribution grid of Uganda. MIGA is also supporting Sithe Global (USA) with guarantees of US$120 million covering its equity investment in Bujagali Energy Ltd. By supporting private investments in both generation and distribution, MIGA has played a key role in supporting the reform of Uganda’s electricity sector, undertaken with the support of the World Bank in 2002. Umeme Limited was awarded a 20-year electricity distribution concession to manage and operate the assets of Uganda Electricity Distribution Company from March 2005, becoming the first significant private operator of electricity distribution in all of Sub-Saharan Africa. The Bank and MIGA have worked closely together on supporting the Government of Uganda and Umeme Ltd. In providing a more reliable, safe, and affordable supply of electricity, MIGA also has a guarantee in support of an agribusiness investment.
There is close interaction with the IMF on the macroeconomic program.
More than 40 bilateral and multilateral development partners provide aid to Uganda. The World Bank, the largest financier, accounted for 19% of the US$7.3 billion disbursed from 2004 to 2008; with the United States and the European Commission (EC) at 18% and 10%, respectively.
The Bank has a lead role in promoting donor harmonization and aid effectiveness. The Bank is the permanent chair of the Local Development Partners’ Group (LDPG), which is the apex development partner forum in Uganda. The LDPG and its sector groups facilitate development partner coordination and interface with the government. In addition, The Bank is also permanent co-chair of the Joint Budget Support Framework (JBSF).
The government’s National Development Plan (NDP) includes a section on government-development partner relations. This section is outlining key issues related to aid effectiveness and stating the government’s intention to adopt a new Partnership Policy, addressing alignment of aid with national priorities and systems, transaction costs, coordination issues, predictability of aid flows, mutual accountability for development results, and partnerships beyond aid. The Partnership Policy is expected to play an important role in managing aid over the medium term, as oil revenues gradually reduce the government’s reliance on external assistance.
Uganda’s development partners undertake periodic division-of- labor exercises to encourage selectivity. Once the new Partnership Policy is adopted, it is expected that development partners will review the division of labor under government leadership.
A New Joint Budget Support Framework
The government and development partners approved, for the first time, a Joint Budget Support Framework (JBSF) in October 2009. The purpose was to reduce the transaction costs of budget support for the government, increase the predictability of disbursements, and create a stronger and more consistent policy dialogue that fosters mutual accountability in line with the Paris Declaration on Aid Effectiveness.
In FY10-FY11, the JBSF partners disbursed in excess of US$300 million to the government, or approximately 10% of the government’s budget. This budget support provides a platform for policy dialogue between the Ugandan government and its development partners.
The JBSF governance structure is two tiered:
A Development Partners Policy Committee meets regularly and engages with the government at an annual high-level forum;
At the technical level, the JBSF Technical and Policy Dialogue Taskforce coordinate the design and implementation of the JBSF and conduct an annual assessment of performance.
A multi-donor trust fund managed by the Bank is financing a Technical and Administrative Support Unit to provide administrative support and generate high-quality technical and analytical work.
There are currently nine JBSF partners, including two multilateral development partners (European Commission, World Bank) and seven bilateral partners (Austria, Belgium, Denmark, Germany, Ireland, Sweden and the United Kingdom). The JBSF partners are committed to creating a conducive partnership with the government based on commitment, mutual accountability, trust and open dialogue.
Joint Assessment Framework
A framework is annually developed and agreed by the government and the JBSF partners, which is applied to assess the government’s performance in agreed areas. This forms the basis for development partners’ disbursement decisions, and also ensures timely disbursements.
Performance by the government against the Joint Assessment Framework during FY 2010/11 indicated that overall, the Government continues to show a reasonable level of commitment to the underlying principles of the JBSF.
Recently, however, JBSF development partners have had to re-think budget support to Uganda following financial misappropriations at the Office of the Prime Minister and the Ministry of Public Service. Development partners are now assessing the financial aid modalities to the government, which will determine the volume of budget support provided.
Last updated October 2013
September 2013 marks the 50-year partnership anniversary between Uganda and the World Bank Group. In the past 50 years, the World Bank has funded over 100 development projects with financing totaling over US$8 billion, and complemented this support with analytical and advisory services.
The World Bank Group has contributed to the country's progress by supporting macro-economic and sector-specific policy development and investment projects in infrastructure, agriculture, education, health, private sector development, and several other sectors. The partnership with Uganda has been rooted in infrastructure development, as the first projects focused on energy investments that brought electric power to cities, health centers, classrooms, and factories across the country. Infrastructure continues to be the most important area of World Bank support to Uganda accounting for over 60% of the current project portfolio. The World Bank also played a significant role in helping to secure debt relief for Uganda. In July 2006, Uganda received a total of US$3.764 billion in debt relief, combining International Development Association (IDA) debt relief provided under the Multilateral Debt Relief Initiative (US$2.780 billion) and the IDA portion of debt relief already committed under the Heavily Indebted Poor Countries Initiative (US$984 million).
Pillar I: Economic Management
Uganda’s economic management has been challenged during the CAS period as macro-economic instability increased and growth slowed.A succession of shocks, including the global economic crisis, a prolonged drought and a surge of election-related public spending in 2010, and recent corruption cases have affected Uganda’s macroeconomic stability. Growth in gross domestic product (GDP) declined to 3.4% in FY12 (from an average of 7.5% during the first decade of this century). Inflation surged to unprecedented double digits in early 2012. The fiscal deficit (excluding grants) hit a peak of 9.4% of GDP in FY11, while the current account deficit (excluding transfers) deteriorated from 16.7% to 21% of GDP in the last two fiscal years.
In FY13, the economy has shown signs of stabilizing, thanks to prudent monetary policies and the initiation of fiscal adjustment measures. The total public expenditure decreased from 22.8% to 18.6% of GDP in FY12, and is estimated to remain at the same level of 18.6% in FY13. Sustained capital inflows including Foreign Direct Investment (FDI), covered the current account deficit and maintained a stable external balance. However, the economic rebound has remained modest and GDP growth is estimated to be around 5% in FY13—far from the historical trend in Uganda, and much lower than in other countries in the East African Community (EAC).
Pillar II: Enhancing Production, Competitiveness and Incomes
Despite the low share of public expenditures in FY13, the public sector remains the main driver of economic growth. While private-sector led growth slowed between FY11 and FY12, public investment helped Uganda to maintain economic stability. Despite a tighter fiscal instance in FY13, the fast-track implementation of road projects provided some fiscal stimulus to domestic demand. Net exports also improved. Private sector activity gained new impetus with a good harvest in the agriculture sector, reduced manufacturing costs with the commencement of the Bujagali Hydropower plant, and stronger growth in private sector credit. As a result, the share of private investment in the GDP increased from 18.9% in FY12 to 20.2% in FY13. Despite modest recovery of agriculture and manufacturing, services and construction sectors have been the main drivers of the recent growth recovery
Through the Regional Trade Facilitation Project, the Bank supported the creation of the African Trade Insurance Agency, which facilitates international trade by providing insurance against political risks. The PRCP-2 also supported the establishment of the land and company registries and the credit reference bureau, and contributed to, among other things, reducing the time to register a property and a business.
Bank interventions in the roads sector consisted of three phases of the Road Development Program (RDP1-3) amounting to US$263 million, the Road Sector and Institutional Support Project (RSISP), and the East Africa Trade and Transport Facilitation Project (EATTFP). Through the EATTFP, transit time through the Northern Corridor decreased from 15 days to five days for the Mombasa to Kampala route, and from 19 days to eight days for the Mombasa to Kigali route. The border-crossing time at Malaba/Busia also declined from 15 hours to two hours. The three phases of the Road Development Program (RDP) contributed to establishing and/or upgrading a network of urban and rural roads and reducing average travel time and vehicle-operating costs. The program was informed by Bank analytical work on the transport sector strategy, environmental policy, management and financing. The RSISP contributed to the establishment of the Uganda National Roads Authority in 2008, and the approval of the Road Fund Act by Parliament in June 2008.
The World Bank’s interventions in transport have also encompassed water. ‘MV Kaawa’,a ferry on Lake Victoria, was handed over by the World Bank in 2012 after extensive refurbishing costing $3.8 million under the East Africa Trade & Transport Facilitation (EATTF) credit. The ship now has a radar that gives it a full outline of the lake, seeing approaching vessels up to 22 nautical miles away; an advanced Global Positioning System – that gives latitude, longitude and speed on the ground. ‘MV Kaawa’ furthermore now boasts a submarine-like lifeboat with capacity for 22 people as well as food and medication. A sewage treatment plant, the only one on a Lake Victoria vessel, has been installed, as was an oil separator, making it more environmentally friendly.
The Energy for Rural Transformation Project (ERTP) has introduced a cross-sector approach to access expansion, providing key stakeholders in the health, education, water, agriculture, and local government sectors a direct role in planning and implementing energy investments. The project focused on establishing the regulatory and institutional framework for the sector. Additional achievements included installing and operationalizing more than 500 solar systems with a capacity of 117,000 watt-peak hours in health centers across the country, improving service delivery and enhancing safety. Twenty solar water-pumping systems, with a capacity of 196,000 watt-peaks, were installed and are operating in 14 districts countrywide. This least-cost energy solution has improved water supply in small towns and rural growth centers countrywide. The Power Project 4 has contributed significantly to improved energy supply and strengthened Uganda’s capacity to manage reform, privatization and development in the power and petroleum sub sectors, while the Privatization and Utility Sector Reform Project (PUSRP) has supported an improved regulatory framework and investments in the distribution network.
Pillar III: Security, Conflict-resolution and Disaster-management
The Bank’s support under this pillar consisted of both lending and non-lending instruments, notably the Northern Uganda Social Action Fund (NUSAF) project and support to the Amnesty Commission through the Multi-Country Demobilization and Reintegration Program (MDRP). The support provided to the Uganda Amnesty Commission through the Bank-managed Multi-country Demobilization and Reintegration Program (MDRP) contributed to the return of ex-combatants to civilian life. The Northern Uganda Social Action Fund, a community-driven development project, started in 2003 and is now in its second phase. Under its first phase, more than three million people, or 47% of the population in northern Uganda, were provided access to improved social services: 67,000 households (336,000 people) now have access to safe drinking water and nearly 4,000 households (19,000 people) have gained access to improved sanitation facilities.
Pillar IV: Good Governance
Through the Poverty Reduction Support Credit (PRSCs), the Local Government Management Services Delivery project, and the Uganda Public Service Performance Enhancement, the Bank supported the government to implement key public financial and procurement management and institutional development reforms to enhance management of public resources. These include (i) development, publication and roll-out of the Harmonized Participatory Planning Guide (HPPG) to improve planning and budgeting at local governments (LG) and implement the Fiscal Decentralization Strategy, (ii) implementation of the integrated financial management system, the integrated personnel and payroll system, and enhanced procurement planning and reporting. Further, the Governance Partnership Facility (GPF) Window one grant has supported the development of corruption tracking indicators and production of annual reports on corruption trends in social sectors and a citizen’s engagement framework to increase role of non-state actors in monitoring corruption. Through a GPF window two grants the Bank is supporting a selection CSOs to monitor public contracts and ensure value for money.
Pillar V: Human Development
The Bank has partnered the government to reduce elitist education through availing education opportunities for all and to buttress Uganda’s development agenda with science. In pursuit of the two ideals, the Bank has supported many national projects, not least the Universal Primary Education that was launched in 1997, and later, the US$33.5 million Millennium Science Initiative (MSI). MSI closed in June 2013, and funded research through developing capacity, and facilitating cooperation between the Private Sector, universities and research organizations. Its reach can be seen in schools and research facilities, factory-packing floors to university workshops, at the Makerere University Medical School and at a malaria vaccine-testing project. Busitema University is currently running an MSI Textile Engineering project; Gulu University has Africa’s first Bio-Systems Engineering undergraduate course. Independent researchers are applying for support at the Uganda Industrial Research Institute (UIRI), while the Uganda Management Institute hosts the Global Distance program. At Kyambogo University there is a long distance learning facility, and in Lira a medical biotech laboratory.
Through the PRSCs, the Bank also provided support to the education sector reforms including the primary education curriculum review process and efforts focusing on improving the quality of education in addition to expanding coverage.
The 2007 Education Public Expenditure Review (PER) highlighted inefficiencies in primary education such as teacher absenteeism, inefficient teacher deployment and underfunding of non-wage expenditures in public schools. Subsequently, the Bank initiated institutional support to the Directorate of Education Standards to strengthen teacher supervision systems through partnerships with the Ministry of Local Government. The 2008 health sector PER documented widespread waste and absenteeism and highlighted resource gaps. The policy recommendations provide the foundation for sector reforms and inform a project currently under preparation to strengthen health systems. The Country Economic Memorandum (CEM) analyzed the impact of high population growth on the domestic policy agenda and highlighted the economic and fiscal consequences of unchecked population growth.