National Strategy for Local Economic Development

1.1. Background. ............................................................................................................................... 2

1.2. Legal, Policy and Regulatory Context...................................................................................... 2

1.3. Overall mandate. ....................................................................................................................... 3

1.4. Link to Global and Regional Initiatives.................................................................................... 4

1.5. Links to National Planning Frameworks.................................................................................. 4

1.6. Guiding Principles. .................................................................................................................... 5

1.7. Justification for Developing this Strategy................................................................................. 5

1.8. The Process of Developing the NSLED.................................................................................... 6

1.9. Organisation of the strategy...................................................................................................... 6 2. SITUATION ANALYSIS........................................................................................................... 7

2.1. Rationale..................................................................................................................................... 8

2.2. National Responses to ensure LED........................................................................................... 9

2.3. Comparative Advantage and Competitiveness of LGs. ........................................................ 10

2.4. Challenges of LGs in promoting LED..................................................................................... 10

2.5. Stakeholder analysis. ............................................................................................................... 12

2.6. SWOT Analysis. ....................................................................................................................... 13

2.6.1. Conditions that favour the strategy. ............................................................................. 14

2.6.2. Opportunities. ................................................................................................................ 15

2.6.3. Constraints...................................................................................................................... 15

2.6.4. Challenges to developing sustainable local economies.............................................. 16

2.7. Strategic Issues for Local Economic Development. ........................................................ 17 3. STRATEGIC DIRECTION FOR LED PROMOTION................................................................ 19

3.1. Introduction. ................................................................................................................. 20

3.2. Vision............................................................................................................................ 20

3.3. Core Values................................................................................................................... 20

3.4. Strategic Goals. ............................................................................................................. 20 4. STRATEGY IMPLEMENTATION............................................................................................ 24

4.1. Strategy Roll-out............................................................................................................ 25

4.2. Coordination framework. .............................................................................................. 25

4.3. National LED Propagation Team (NPT).......................................................................... 26

4.4. National LED Secretariat. .............................................................................................. 27

4.5. Institutional Arrangements at LG level........................................................................... 27

4.6. LED Strategy Implementation Framework...................................................................... 28

4.6.1. Orientation and Popularization Activities............................................................. 28

4.6.2. LED Implementation Support Activities................................................................ 28 ii Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

4.7. Risks and Mitigation...................................................................................................... 29

4.8. Sustainability Arrangements. ......................................................................................... 30 5. STRATEGY MONITORING AND EVALUATION. ................................................................. 31

5.1. Monitoring. ................................................................................................................... 32

5.2. Evaluation. .................................................................................................................... 32

5.3. Reporting. ..................................................................................................................... 32

5.4. Monitoring and Evaluation Results Matrix. .................................................................... 32

5.5. Strategy Review............................................................................................................. 32 6. FUNDING LED..................................................................................................................... 34

6.1. Sources of Funding........................................................................................................ 35

6.1.1. Central Governments Transfers............................................................................ 35

6.1.2. Funding from Development Partners. .................................................................. 35

6.1.3. Private sector funding through Corporate Social Responsibility............................ 35

6.2. LG Financing................................................................................................................. 35

6.2.1. Local Government Generated Revenue............................................................... 35

6.2.2. Central governments transfers.............................................................................. 35

6.2.3. Local Finance Initiative (LFI)................................................................................ 35

6.3. Budgets. ........................................................................................................................ 36

6.4. Resource Mobilisation................................................................................................... 36 Annex 1: Results Matrix Plan......................................................................................................... 37 Annex 2: Five-Year Summary Budget Estimates............................................................................. 44 Re-igniting Local Resources and Self Help iii NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 FOREWORD “Re-igniting Local Resources and Self Help” As you might be aware, the goal of the Third National Development Plan (2020/21 – 2024/25) is to increase household incomes and improve the quality of life of Ugandans through sustainable industrialization for inclusive growth, employment and sustainable wealth creation. The theme of the National Strategy for Local Economic Development “Re-igniting Local Resources and Self Help” is premised on the fact that Uganda is well-endowed with abundant natural resources, and therefore harnessing sustainably these natural resources will contribute significantly to socio- economic development for the benefit of current and future generations of Ugandans. Pursuing the path to industrialization will increase the country’s resilience, transform the lives of the people through better incomes and gainful jobs, and strengthen the country’s regional and international competitiveness. Subsistence agriculture remains, directly and indirectly, the main preoccupation of the rural households that make up over 70 percent of Ugandans population. Despite this, agricultural development and its accruing benefits remain peripheral. Consequently, this calls for agro-industrialization which is is a central driver for the transformation of the subsistence agriculture sector to a commercial and competitive sector. The National Local Economic Development Policy of 2014, defines Local Economic Development as a process through which local governments, the private sector and communities form partnerships to mobilize, manage and invest resources effectively into economic ventures to stimulate development and growth of their locality. Local governments are right at the center of all social and economic development initiatives and therefore, must influence the structure and direction of their local economies if the country is to achieve its goal of increased household incomes and improved quality of life of Ugandans. This calls for a paradigm shift in the way the local governments currently do business to one that facilitates effective business-oriented locality development with a focus on poverty reduction and sustainable wealth creation. Local governments are expected to drive local economic development in their localities. With this comes both challenges and opportunities in respect of making a real difference in the lives of the people. Local governments working in partnership with businesses presents a particularly great opportunity to create sustainable local economies. The key challenge is to have a shared understanding regarding what constitutes appropriate and effective local economic development practice. iv Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 This National Strategy for Local Economic Development in Uganda seeks to create a shared understanding of good LED practice and motivate more effective implementation. The Strategy is a product of intense dialogue and deliberations amongst several stakeholders in local and central government, the private sector, civil society and the academia. I would like to thank the LED Department at the Ministry of Local Government who with support from a Technical Advisor provided by German Development Cooperation, through the GIZ Promoting Rural Development programme, were ultimately responsible for producing this Strategy. To the Local Governments, Central Government Ministries, Departments and Agencies, individuals and organisations who contributed to the document, our sincere gratitude goes to you for your time, commitment and enthusiasm. It was truly a collaborative effort. This strategy, we believe, is an accurate reflection of the current state of thinking about local economic development that should be supported across all three spheres of government and through active involvement. Raphael Magyezi MINISTER OF LOCAL GOVERNMENT Re-igniting Local Resources and Self Help v NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 ACKNOWLEDGMENT The Ministry of Local Government would like to thank everyone who contributed to the development of this National Strategy for Local Economic Development. The strategy is a product of teamwork, dedicated effort and, unwavering commitment. This commitment to developing a National Strategy, and its implementation, is an affirmation of our strong and progressive leadership at the Ministry, leadership that is desirous of causing the much- needed socio-economic transformation of our Communities. The strategy is framed in line with the National Development Planning Framework provided by National Planning Authority (NPA) and, therefore, reflects the development priorities contained in Third National Development Plan (NDPIII). It is our strong conviction that this Strategy will contribute to the promotion of Local Economic Development in the country. Through this Strategy, we also expect a transformation of our Local Governments into entities that will facilitate effective business-oriented development with a focus on poverty reduction and sustainable wealth creation. The Strategy’s theme of re-igniting local resources for self- help calls on the Public Sector, Private Sector and Communities to work in partnership in harnessing the abundant local resources of the country in order to uplift the standard of living for all Ugandans. I therefore take this opportunity to express my gratitude to staff of the Local Economic Development Department, and the Ministry of Local Government for their invaluable contributions while developing this Strategy. Special thanks go to the Technical Advisor to the Department, who spearheaded preparation of the strategy. I also wish to extend my gratitude to the Senior and Top Management at the Ministry of Local Government for their strategic oversight during the strategy development process. We are greatly indebted to our partners the German Development Cooperation through GIZ Promoting Rural Development Programme who have not only walked with us since 2019 but also played a very instrumental role in the development and launch of this strategy. Ben Kumumanya PERMANENT SECRETARY, MINISTRY OF LOCAL GOVERNMENT vi Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 ABBREVIATIONS BTC Belgian Technical Cooperation CAADP Comprehensive Africa Agriculture Development Programme CBO Community Based Organisation CRM Common Results Matrix CSO Civil Society Organisation CSR Cooperate Social Responsibility DCO District Commercial Officer DDP District Development Programme DLRT District LED Resource Team DPSF Decentralisation Policy Strategic Framework ERA Electricity Regulatory Authority FDS Fiscal Decentralisation Strategy GoU Government of Uganda LDG Local Development Grant LED Local Economic Development LEGS Local Economic Growth Support LFI_U Local Economic Development Finance Initiative for Uganda LGA Local Government Act LGFAR Local Government Finance Accounting Regulations LGFC Local Government Finance Commission LGs Local Governments LGSIP Local Government Strategic Investment Plan JARD Joint Annual Review of Decentralisation MAAIF Ministry of Agriculture Animal Industry and Fisheries MATIP Markets and Agricultural Trade Improvement Project MDA Ministries Departments and Agencies M&E Monitoring and Evaluation MFI Micro Finance Institutions MLRT Municipal LED Resource Team MoFPED Ministry of Finance Planning and Economic Development MoGLSD Ministry of Gender, Labour and Social Development MoLG Ministry of Local Government MoTIC Ministry of Trade Industry and Cooperatives MoWE Ministry of Water and Environment MSME Micro Small and Medium Enterprises NAADS National Agricultural Advisory Services NARO National Agricultural Research Organisation NDP National Development Plan NEMA National Environment Management Authority Re-igniting Local Resources and Self Help vii NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 NEPAD New Partnership for African Development NGO Non-Governmental Organisation NPA National Planning Authority NPT National LED Propagation Team NSCG Non-sectoral Conditional Grant NSLED National Strategy for Local Economic Development NUSAF Northern Uganda Social Action Fund OPM Office of the Prime Minister OWC Operation Wealth Creation PACA Participatory Appraisal of Competitive Advantage PDC Parish Development Committee PDM Parish Development Model PFMA Public Finance Management Act PMA Plan for Modernization of Agriculture PPP Public Private Partnerships PRELNOR Project for the Restoration of Livelihoods in Northern Uganda PRUDEV Promoting Rural Development in Uganda PSA Private Sector Association RACA Rapid Assessment of Competitive Advantage RDS Rural Development Strategy SACCO Savings and Credit Cooperative Societies SDG Sustainable Development Goal TILED Trade Industry and Local Economic Development ToT Trainers of Trainers UCC Uganda Communication Commission UIA Uganda Investment Authority ULGA Uganda Local Governments Association UMI Uganda Management Institute UNBS Uganda National Bureau of Standards UNCDF United Nations Capital Development Fund URA Uganda Revenue Authority VGS Vulnerable Group Support viii Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 EXECUTIVE SUMMARY In 2014, the Government of Uganda adopted the national Local Economic Development (LED) policy, whose overall goal is “A transformed local government system that facilitates effective business-oriented locality development with a focus on poverty reduction and sustainable wealth creation”. The policy enables Local Governments (LGs) to improve the business environment and the private sector, civil society, and community to play their roles in economic growth and job creation and transform Uganda from a low to a middle-income country. The promotion of LED creates opportunities for LGs to increase private sector investments, employment creation, and increase household incomes, allowing LGs to benefit from this development through taxes and rates collected from the business community. Notwithstanding the existence of a legal and policy framework and programmes that would aid the implementation and coordination of LED initiatives, there is an overall limited internalisation and localisation of some of these policies and synergies among programmes. There is also a lack of guidelines for implementing LED policy provisions and inter programme coordination, especially at the macro and micro levels. LED is a multi- actor, multi-intervention approach that requires a coordinated effort of all MDAs. Currently, MDAs operate primarily in silo formations which does not allow for synergy in the planning, implementation and monitoring of LED-leaning interventions. Whereas the Local Government Act (LGA) and LED policy allows local governments to collect revenues and flexibility in usage to address local needs, local revenues are low. Less than 3% of LG financing is from their revenues, as the central government retains the collection of more lucrative local taxes. There is an inadequate mobilisation of the private sector and other non-state actors for LED. Poor mobilisation of stakeholders (community, public sector, private sector, and CSO actors) which undermines the effective implementation of LED. There is also a lack of LED strategy frameworks at the LG level. Very few LGs have to date developed comprehensive LED strategies that propose viable interventions based on an appraisal of their comparative and competitive advantages in terms of economic potentials and motivation and capacity of stakeholders in the LG for enhancing LED promotion. In the absence of LED strategies, initiatives can only be adhoc with no apparent link for impact on the LED. The current threats faced by LGs and low local revenue mobilization at the LGs propel the need to institute a strategy that considers the business environment the private sector faces. This will increase locally generated revenue through direct taxes and LG’s revenue- generating ventures. The overall objective of this strategy is to enhance the capacity of LGs to grow private investment in LGs. The strategy will stimulate investments in LGs by improving the local environment to become conducive for entrepreneurs. It will boost productive activities by improving the operations of the private sector based on the local potential. It will encourage partnerships between the private and public stakeholders in a defined territory. It will enable the collaborative design and implementation of all-inclusive development plans that optimize the use of local resources and competitive advantages. The strategy will reinforce backward and forward Re-igniting Local Resources and Self Help ix NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 linkages between national and local levels and between the public and private sectors. Finally, it will ensure the fulfillment of obligations by the private sector (payment of taxes) and public sector (provision of services) and demand for accountability by the citizenry. The National Strategy for Local Economic Development (NSLED) has the following strategic objectives: a) strengthen capacities of LGs for LED conceptualization, planning and budgeting, implementation and monitoring. b) Increase the number of fully financed LED projects c) engage CSOs to enhance synergies including integration of crosscutting issues (gender, HIV/AIDS, environment, and the vulnerable groups) in the promotion of LED d) promote collaborative partnerships with the private sector for local economic development e) creating a business enabling environment that facilitates business growth and increased investments f) promote policy coordination environment for LED promotion g) monitor and evaluate strategy implementation x Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Aerial view of Namanve Industrial Park Sunflower Oil Processing Plant in Palorinya, Smallholder Sunflower Farmer in Palorinya, Obongi District Obongi District 1 INTRODUCTION Re-igniting Local Resources and Self Help 1 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

1.1. Background Local Economic Development (LED) was sets out the rationale for an integrated approach introduced in 2006 as the sixth objective of to promoting Local Economic Development decentralization to stimulate local economic (LED). In particular, to facilitate coordinated development for increased business promotion action by and within the public sector and and poverty eradication. Promoting LED should between the public and private sector for local facilitate the establishment of local investment economic development. Ministries, Departments centres, enhance private sector investments in and Agencies (MDAs), and Local Government LGs and increase locally generated revenue. (LG) departments work in parallel with each other rather than collaboratively. Addressing With support from the Belgian Technical key LED issues and opportunities that MDAs and Cooperation (BTC), the Ministry of Local LGs have to deal with in a single strategy opens Government in 2007 developed a Strategy for up opportunities for creating synergies, adding Promoting Investment and Local Economic value, and innovation through cross-sectoral Development. This strategy provided a cooperation. framework for the Government of Uganda (GoU), development partners like the United While the NSLED takes a macro-outlook at the Nations Capital Development Fund (UNCDF), economy, LGs will have to thoroughly analyse Local Governments (LGs) like Kasese District, their local economic and social environment and and Non-Government Organisations (NGOs) generate strategies and plans to better harness like Family Development Support Initiatives their economic possibilities and overcome (FADSI), to plan and implement LED initiatives, obstacles to the growth of local economies. initially on a pilot basis. Strategic interventions must be pursued that make districts attractive places to invest and live in. Uganda’s Vision 2040 aims to transform the These interventions, among others, should lower Ugandan society from a peasant to a modern production costs, enhance international and local and prosperous society. In this regard, the competitiveness and facilitate the sustainable Government of Uganda has prioritised economic exploitation of development opportunities. development, with the private sector as the engine of growth and development. Working LED has been embraced in Uganda’s planning with the private sector should lead to sustainable frameworks as a key development approach. resource-led industrialisation that is beneficial This makes LED a key performance area for to the citizens through job and wealth creation. Local Governments. The NSLED has been Ministries, Departments and Agencies (MDAs) formulated within existing policy frameworks and Local Governments (LGs) must, therefore, like the National LED Policy 2014. The NSLED focus their efforts towards Private Sector is aligned to the National Development Plan Development and Human Capital Development (NDPIII) 2020/21 – 2024/25, in particular that will contribute to building an educated, the parish development model approach, the skillfull, and productive labour force to drive the regional development approach and a number industrialisation process. of programs like Agro-Industrialization, Tourism Development, Private Sector Development; The National Strategy for Local Economic Human Capital Development, `and Community Development (NSLED) sets out a vision and Mobilisation and Mindset change. strategic agenda for economic development across Uganda’s LGs. The strategy’s overall 1.2. Legal, Policy and Regulatory Context goal is to unlock economic development Uganda’s Decentralization commenced in 1992 opportunities in the LGs through the involvement with a Presidential Policy statement and was and collaboration of all stakeholders, namely the thereafter entrenched in the Local Government private sector, public sector, civil society, and Statute of 1993. Until 2005, decentralisation community members. In addition, this NSLED was based on five objectives. In 2006, the sixth 2 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 objective of decentralisation “promotion of Policy; The Micro, Small and Medium Enterprises Local Economic Development”, was adopted (MSMEs) Policy; National Tourism Policy; The to address this challenge of unemployment and National Cooperative Policy; The National ICT high poverty levels. This inclusion compels the Policy; The National Agricultural Investment central government and the local governments to Strategy; The Rural Development Strategy; The promote local economic development. National Policy on Energy; and the Public Private Partnership (PPP) Policy, 2010 and PPP Act, 2015. Through its MDAs and LGs, the Government of Uganda is legally bound to promote social and 1.3. Overall Mandate economic development. Chapter 11 of the 1995 The Ministry of Local Government (MoLG) is Constitution of the Republic of Uganda provides responsible for coordinating the implementation for the principles, structures and responsibilities of the decentralisation policy. The vision of the of a LG. This provision is operationalised in Ministry is to have democratic and accountable the Local Government Act CAP 243. Section 3 local governments capable of delivering efficient (2) to (5) of the Act established Local Councils and sustainable services to the people, thereby as the highest political organ in their areas of bringing about socio-economic transformation jurisdiction. In the second schedule of the Local into the country. Government Act Cap 243, Central Government delineates some of the regulatory functions of The MOLG is central to the coordination of LGs, including planning, legislative and fiscal national stakeholders to ensure their LG sector functions. strategies are aligned for the joint implementation of activities. As the major link between Central In 2014, the Government of Uganda adopted the and LGs, the MOLG ensures MDAs cooperate National Local Economic Development (LED) with LGs in their LED planning and execution. Policy, whose overall goal is “A transformed The MOLG works in partnership with the Local local government system that facilitates effective Government Finance Commission (LGFC) to business-oriented locality development with a advocate for LED funding. The Ministry also focus on poverty reduction and sustainable wealth has the critical role of Monitoring & Evaluation creation”. The policy enables Local Governments throughout the process and coordinating the (LGs) to improve the business environment and District LED Resource Teams at the LG level. the private sector, civil society, and community to play their roles in economic growth and job The MOLG undertakes the above through its creation and transform Uganda from a low to a LED department, which is also responsible for middle-income country. The promotion of LED implementing the National Strategy for Local creates opportunities for LGs to increase private Economic Development. The departments’ core sector investments, employment creation, and functions in line with the policy mission and increase household incomes, allowing LGs to overall goal are to: benefit from this development through taxes and • Support to LGs through training to incorporate rates collected from the business community. LED activities into the LG Planning and budgeting: Other policies and regulations that may impact • Promotion of employment and wealth creation interventions in this NSLED include: The through support to the development of new Local Government Financial and Accounting industrial/business parks to promote skilling Regulations (LGFAR); Public Finance Management of women and youth, production and wealth Act (PFMA), 2015; Financial Institutions Act creation. and Micro Deposit - Taking Institutions Act; The National Trade Policy; The National Land Policy; • Stimulating the development of local The National Local Capacity Building Policy; The economies through enhanced production to National Environment and Management (NEMA) expand local revenue generation by LGs Policy; The National Gender Policy; The National • Re-orienting LGs from a consumptive nature Industrial Policy; The National Industrial Park into business orientation and investment Re-igniting Local Resources and Self Help 3 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 • Support the development of public Africa Agriculture Development infrastructure to boost production and market Programme (CAADP) at the continental level, accessibility which seeks to improve Food and Nutrition • Supporting local private sector dialogues, Security, promote agro-industrialization and cooperation and networks to encourage integrated transport infrastructure, and increase experience sharing, and incomes in Africa’s largely farming-based economies. This is expected to be achieved • Facilitating private investments through through raising agricultural productivity and linkages with MDAs and other regulatory increasing public investment in agriculture. bodies

1.4. Link to Global and Regional Initiatives 1.5. Links to National Planning Frameworks Global Frameworks The 3rd National Development Plan (NDP III) The NSLED is housed within and contributes to 2020/21 – 2024/25 adopted LED as a core the global agenda 2030 through the Sustainable development approach which fits well in the Development Goals (SDGs), especially regional development program that aims to goal number 1, of ending poverty in all its accelerate equitable economic growth and manifestations by 2030. Other development development and reduce poverty in the lagging challenges addressed by the SDGs include sub-regions1. With government commitment to those related to inequality, climate change, LED, the LED strategy is expected to provide the environmental degradation, peace and justice. much-needed impetus for promoting LED for LED promotion contributes to goals 1 - 3, 5, 8 – employment creation and poverty reduction. 13, 15 and 17, respectively. Within the NDP III, LED is premised in the On the African continent, Agenda 2063 Regional Development Programme which provides the blueprint and master plan for targets to contribute to the four NDP III objectives, transforming Africa into the global powerhouse to; (i) enhance value addition in key growth of the future. Within this, the New Partnership opportunities; (ii) consolidate and increase the for Africa’s Development (NEPAD) addresses stock and quality of productive infrastructure; (iii) local development issues, primarily through enhance the productivity and social wellbeing of decentralization, governance and growth. the population, and (iv) strengthen the role of the state in guiding and facilitating development. The 2011 Istanbul declaration and programme of action charts out the international community’s The National Planning Authority (NPA) also vision and strategy for the sustainable proposed a new development approach—a development of LDCs for the next decade, Parish Development Model (PDM)2. Being the focusing strongly on developing their productive lowest reference administrative unit, the Parish is capacities. expected to deliver grass-roots interventions and drive socio-economic transformation. The PDM Regional Frameworks is consistent with the LED approach as it aims At the regional level, this NSLED is aligned with to impact the local population’s living standards the East African Community Agenda, which aims positively. In effect, it provides the much-needed to achieve prosperity, competitiveness, security, funding to operationalise LED at the lower local stability and political unification in East Africa. government levels. The NSLED is aligned to the Comprehensive 1 Findings of the Uganda National Household Survey of 2016/17 provided compelling evidence that poverty levels in those 8 sub-regions of Karamoja, Bukedi, Bugisu, Busoga, West Nile, Ateso, Acholi, Bunyoro were unacceptably high compared to the national average of 21.4 percent. 2 MoFPED (2021). Background to the Budget Fiscal Year 2021/2022 4 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

1.6. Guiding Principles CSOs. For NSLED to achieve its objectives, LGs, This strategy embraces the guiding principles in the private sector, the communities, and civil the National Policy of 2014 namely; Consistency society will be required to fully participate in with the National Development Plan and the locality’s economic development through Decentralization Policy and Strategic Framework; appropriate coordination. Commitment of Relevant Stakeholders; Public-Private Partnerships; Competitiveness 1.7. Justification for Developing this Strategy Enhancement; Transparency and Accountability; Since the adoption of the LED Policy in 2016, Gender Equality, Equity and Inclusiveness; and there has been no strategic framework to Sustainability. In addition, it incorporates the facilitate operationalisation of the policy. The principles of: LED policy whose primary objectives have been to: increase in business support by encouraging Alignment with International Policies and Plans: local investment centers, growth of the private The NSLED is housed within and contributes sector investment in LGs, and increase in locally to the global and regional policy agenda as generated revenue in form of direct taxes and elaborated in the Sustainable Development LG own revenue generating ventures has been Goals (SDGs) and New Partnership for Africa’s quite slow and its impact very difficult to trace Development (NEPAD). in local governments. LED continues to be seen Home grown and locally driven: The NSLED as an important and viable strategy for achieving has been customised to the unique situations economic growth, creating new jobs, increasing of Uganda and its governance structure while income levels and improving the quality of life allowing flexibility to respond to peculiar local in local communities in both the developed and needs that arise out of demographic, socio- developing countries. cultural, economic, political and ecological The absence of an implementation framework disparities across the county. The use of local has led to among others: resources and skills to maximise development i). failure to operationalize implementation opportunities is emphasised. So, each locality structures hence gaps in coordination with may develop an approach best suited to its local and amongst central government actors, context. ii). lack of dedicated LED personnel at the Process orientation: LED promotion activities Ministry until 2019 and in LGs. At the LG level will initially be based on small initiatives that shall is a LED resource team that brings together provide information and lessons for replication public officials, business community, civil into medium and long-term aspects as well as society and community representatives. It informing the refinement of the LED Strategy. is noted that the LED Resource teams have This will facilitate the quick implementation of been appointed in most LGs but are not the LED strategies in the respective localities. functional. Cooperation: The NSLED embraces and promotes iii). inadequate and lack of financing for LED local, national and international partnerships projects/interventions, between communities, private sector/businesses iv). at the LG level, poor state of and inadequate and public sector/government to solve problems, economic infrastructure, and the absence of create joint business ventures and build local a vibrant private sector that is organized. areas. Effective implementation of LED requires the concerted, coordinated action of all spheres v). limited geographical scope of coverage with and sectors of government, private sector and LED piloted in a few (10) districts, Re-igniting Local Resources and Self Help 5 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 The justification to promote LED is prompted by with all relevant stakeholders and, with LGs, several factors, on the one hand, based on the through online meetings with clusters of districts. need and, on the other, based on a conducive The ultimate step in the process was subjecting framework for its implementation. LED the strategy to peer review by a leading LED implementation starts with a uniform and clear expert. understanding of the LED concept, processes, and approaches. Through targeted awareness-raising 1.9. Organisation of the strategy activities, training, and mentoring, LGs are better This NSLED is arranged in six chapters. Chapter positioned to conceptualize and implement LED One provides the Introduction and the strategy in their localities. development process. Chapter two provides

1.8. The Process of Developing the NSLED the situation analysis highlighting the sector achievements, potentials and constraints as well The NSLED was developed through an inclusive, as past LED processes. Chapter three presents participatory process involving consultations with the strategic direction for the sector detailing the the various stakeholders. The process begun with Vision, Mission, Goal, objectives and proposed a review of the 2016 draft national LED strategy interventions under NDP III programs. Chapter during a retreat in December 2019 involving four presents the strategy implementation representatives from MDAs with LED-leaning modalities including the organizational mandates, LGs, and Private Sector Associations management structure and institutional (PSAs), Civil Society Organizations (CSOs) arrangements for implementing the plan. and the Academia. Staff drawn from different Chapter fives provides the plan’s Monitoring and departments in the Ministry of Local Government Evaluation Strategy. Finally, chapter six details were involved in the strategy drafting phase. They the Financing Strategy for the Plan. then subjected the draft strategy to validation 6 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Soroti Main Market Chairperson Vegetable Section, Entebbe Kitooro Banana (Matooke) Market in Main Market Kitwa, Kanungu District 2 SITUATION ANALYSIS Re-igniting Local Resources and Self Help 7 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

2.1. Rationale Whereas the LGA and LED policy allows local related to the absence of data for LED planning governments to collect revenues and flexibility and implementation. As such, LED has not been in usage to address local needs, local revenues sufficiently strengthened in local planning, are low due to policy shifts, constraints in tax budgeting, and implementation systems. This administration and meagre revenue base as a was pointed out in 18 LGs under the DINU result of unexplored sources, limited productivity project where getting baseline information for and high poverty levels. planning is nearly impossible. The promotion of LED creates opportunities There is a need for a shift in planning at the for LGs to increase private sector investments, local level to ensure the involvement of critical employment creation and increase in household stakeholders in LED implementation. This is even incomes, which in turn allows LGs to benefit more urgent now that LED has been recognised in from this development through taxes and NDP III as a key approach for local development; rates collected from the business community. this requires it’s mainstreaming in governance Despite the existence of resource endowment and development processes. that can be exploited to reduce dependence on Notwithstanding the existence of a legal and government and donor funded initiatives, there policy framework and programmes that would is limited investment in productive sector which aid the implementation and coordination of LED would stimulate economic activity, employment initiatives, there is an inadequate mobilisation of opportunities and increasing incomes at the private sector and other non-state actors for LED. household level. Poor mobilisation of stakeholders (community, While the Ugandan economy is growing, this public sector, private sector, and CSO actors) growth has not translated into job creation undermines the effective implementation of LED. for Ugandans. The economy at present is not With awareness comes mindset change that creating quality and gainful jobs especially for the should see greater cooperation and collaboration youth. Unemployment in Uganda is estimated at among stakeholders right from issues and solution 13.3%. A deliberate effort to stimulate private identification, planning, implementation and investment and economic diversification in monitoring of LED initiatives and projects. The traditional labour-intensive sectors such as lack of or low level of private sector engagement agriculture, manufacturing and tourism coupled at the LG level undermines their participation in with skilling programs to match skills required LED. Most private sector organisations are very for labour markets and knowledge produced by weak, which makes their effective representation training institutions is required. on platforms rather difficult. There are no platforms or forums for dialogue on issues in the business Given the limited technical capacity, the operating environment currently in LGs, hence strategy offers the opportunity to design and unfavourable environments. implement capacity building and programs using the department for Trade Industry and Existing community-based and civil society Local Economic Development (TILED), working organisations have not been able to positively in partnership with the District Planning impact community participation in the planning, Department as the fulcrum of those activities implementation, and monitoring of interventions, and extending that capacity training to all other including LED specific projects. This is partly actors. In addition, there is an urgent need to staff due to the lack of skills to engage the citizens in the TILED department with an officer specifically a participatory way. Similarly, BMOs and farmer designated to hand LED promotion. groups are often weak and rely on donor funding to sustain their operations. This undermines their LG’s capacity for data collection and management ability to participate in dialogues forums, planning, needs to be built to address the constraints 8 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 implementation and monitoring of LED initiatives, sector through leasing of district assets to the let alone mobilise their membership. Uganda Management Institute (UMI), Toyota Uganda and U-Touch Company among Limited human resources also constrain LED others from where it gets monthly revenue initiatives at the national and LG level. The LED on assets that were previously redundant. department at MoLG is inadequately staffed, with This has enabled the district to collect up to only 5 technical staff. At the LG level, the situation a billion shillings in local revenue which is is dire, with only 1 staff in the TILED department. an improvement compared to their previous The inadequacy of staff undermines effective collections which was always ranging support to the LGs from the national level and between UGX 240 million and UGX 500 from the LG to the stakeholders in the districts. million. There is also a lack of LED strategy frameworks at the LG level. Very few LGs have to date developed b. Arua City (previously Municipal) authorities comprehensive LED strategies that propose have in partnership with a private construction viable interventions based on an appraisal of firm and the business community commenced their comparative and competitive advantages in construction of the Arua Stadium. The terms of economic potentials and motivation and construction only benefitted from land capacity of stakeholders in the LG for enhancing contribution by the LG while the capital has LED promotion. In the absence of LED strategies, been raised filly by the private sector. initiatives can only be adhoc with no apparent c. Other initiatives implemented can broadly link for impact on the LED. be summarised under three interventions and Finally, there is inadequate economic actions that include: infrastructure at the LG. The main reason for i. Increasing business support by encouraging inadequate infrastructure is local financial local investment centres; limitations. Moreover, there is an insufficient 1. Identification and allocation of land number of skilled technicians/personnel for investments – industrial parks, to provide adequate infrastructure. Critical commercial plots etc. economic infrastructure for LED includes roads, 2. Easing the processes of obtaining markets, warehouses/silos, power and water. business permits and licenses

2.2. National Responses to ensure LED ii. Enhancing growth of the private sector The Ministry of Local Government and the investment in the LGs; and Uganda Investment Authority alongside the 1. Construction of infrastructure – district District Development Programme (DDPIII) roads, bridges, implemented the Local Economic Development 2. Construction of markets, parks, Finance Initiative for Uganda (LFI_U) between May 2012 and December 2012. This pilot phase 3. Provide information on economic targeted six infrastructure development projects opportunities, market opportunities namely the Arua IPS Hydroelectric Generation and linking producers and buyers Project, Busia Lorry Park, Nwoya Delight 4. Local procurements – award of Fresh Juice Project, Kayunga Amfri Farms Juice contracts to local private sector Processing Project, Kitgum-Olam Warehouse iii. Increasing locally generated revenue in Project, and Isingiro, UCCCU Milk Processing form of direct taxes and LG own revenue Project. generating ventures. More recent examples of LG-Private Sector LED 1. Automation of local revenue initiatives include the following. management in LGs electronic Local Government Revenue (e-LOGREV) a. Gulu City (previously district/municipal) has / Tax payer Register Expansion entered into partnerships with the private Programme (TREP) Re-igniting Local Resources and Self Help 9 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 2. Gazetting of markets, land markets, both in terms of allocation of land for the most valuable use and the 3. Construction of infrastructure – district building of structures; roads, bridges, ii. Ensure the provision of connective 4. Identification of and implementation of infrastructure; and income generating activities – rental of iii. Enhance urban planning to provide common idle property, real estate developments knowledge to guide and coordinate public – rental shops. and private investment. Notwithstanding the above achievements, Human Capital: Urban centres in Uganda have LED implementation at the national level was experienced a high rate of migration of youth constrained by the absence of an implementation from the rural areas in search of employment. framework leading to, among others: This presents opportunities for readily available i). Failure to operationalize implementation and active skilled and unskilled labour to work structures hence gaps in coordination with in new and existing business establishments. and amongst central government actors, However, what is needed is for LGs to ensure ii). Lack of dedicated LED personnel at the that these young people are trained and equipped Ministry until 2019 and in LGs, with in-demand labour market skills to enhance iii). Inadequate and lack of financing for LED their employability and self-employment. projects/interventions, Natural Resources: Most LGs have at least iv). The limited geographical scope of coverage one or more natural resources that range from with LED piloted in a few (10) districts. forests, rivers, minerals, oil and gas etc. Resource potential varies from district to district, with

2.3. Comparative Advantage and some having many natural resources or high- Competitiveness of LGs value natural resources. LGs need to profile Urbanisation: Uganda is currently presented their natural resources and attract investors to with an opportunity to leverage the process of sustainably and in an inclusive manner, exploit urbanisation to ensure that it benefits the majority these resources, all to the benefit of LG, its of its citizens, including the poor, through citizens, and the country. increased private sector investment. Uganda’s Land: LGs have vast amounts of land, most of urbanisation dividends can be pursued along which is arable and suitable for agriculture. three dimensions based on its urban advantages, The dominance of agriculture demonstrates this and these are: as an economic activity in most districts. To i. To support economies of scale in production tap into existing comparative and competitive by increasing urban density and better advantages, LGs need to engage their citizens connecting rural and urban areas; around the dangers of land fragmentation and ii. To improve the coordination of public the benefits of land titling. Titled land attracts investment with decisions related to the investors to put their capital into projects for location of both people and businesses; and which land and security of tenure is paramount, while un-fragmented land is suitable for iii. To increase the provision of public services commercial mechanised farming. and public goods such as transportation, water, and sanitation services, all of which 2.4. Challenges of LGs in promoting LED are vitally necessary to support rapid The dismal performance and limited impact urbanisation. of LED in a majority of LGs can be attributed To achieve the above, the key roles of public to a number of factors or constraints that have policy include the following: undermined the ability of LGs to come up i. Support the more efficient functioning of with LED projects and implement them in their 10 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 respective localities. Key among these are the and investment profiles that would be central for following: attracting investment in the different economic sectors in the localities. Inadquate technical capacity at LGs: this is evidenced by the lack of a clear understanding of Low local revenue collections: On average the LED concept, approach, methods and tools local revenues account for at most 3% of among LG staff, including LED focal persons. LG financing due to the central government Some LGs could not develop LED Strategies, retaining the collection of more lucrative local mainstream LED promotion activities into their taxes that, renders local governments more plans, generate LED projects, and effectively reliant on government transfers than local implement and monitor LED projects. revenue collections. The 2015 Public Finance Management Act provisions require all revenues Shortage of dedicated staff for LED: Until FY collected by public entities are deposited into 2019/2020, LGs lacked staff dedicated to LED, the consolidated fund. This further demotivates with the responsibility placed on the District LGs since they can only access such funds in the Commercial Officers. The creation of the TILED next FY. Inadequate LED funding has been made department has now ensured a dedicated worse by the failure to establish the national department. However, the TILED departments budget’s non-conditional LED financing grant, as are understaffed and with a vast majority of LGs provided in the LED Policy. having only the District Commercial Officer as staff of the department. Unequal fiscal relationship between the central and local governments. Whereas the legal Absence of LED Resource Teams at LG: The LED and governance frameworks in place devolve resource teams bring together public officials, significant functions and responsibilities to the business community, civil society, and LGs, they can only exercise these powers with community representatives. Although the LED minimum discretion, which renders them Resource teams have been appointed in most incapable of performing optimally. LGs, they are not functional. At the LLG level, no Limited legislative powers. The public-private structures exist. partnership arrangement with non-state actors Limited stakeholders’ involvement in the for LED implementation can only be sanctioned planning of LED initiatives: This leads to the poor from the centre because local governments do design of some projects, which fail altogether not have the required jurisdiction to make the because of a lack of stakeholder participation necessary legislation that can bring together in their implementation, thus, costing time and the state and the non-state actors at the local money and delivering very little. Most times, level. In addition, there is an absence of specific private sector and civil society actors are left LED promotion bye-laws and ordinances for out when the district is planning. As such, the production, including post-harvest storage and districts miss out on critical inputs from key savings, passed by Local Councils. actors whose input could positively influence Unfavorable business enabling environment the implementation and success of planned in LGs: This leads to low collections of market interventions. charges, business licenses, and parking fees. Low awareness of LED among businesses, Inadequate investments at the LG level linked civil society, communities and other economic to challenges in coordination of central and actors. LG technical staff have not carried out local levels for investment planning. There is mobilization programmes to popularize LED in very little support if any for small and medium- their localities. sized enterprises development which plays a Inadequate information: Data, which is strong role in the attraction of the investments central for the planning and implementation of businesses at the local level, especially in the of LED projects, is lacking. LGs are, in such manufacturing sector and service sector, which instances, incapable of generating economic impacts in increasing their value. At the LG level, Re-igniting Local Resources and Self Help 11 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 the lack of ordinances and bye-laws to enhance require flexibility, innovation and commitment production capacities, and create new jobs, to funding mechanisms for LGs. As a funder, makes it difficult for local businesses and other it also has a role in the overall Monitoring and businesses in the country plus foreign businesses evaluation of the process. Together with other to find concrete support from LGs in order to Public-Sector Management MDAs, it plays a invest at the local level. crucial role in ensuring good governance and success of the NSLED.

2.5. Stakeholder analysis The following are some key institutions that play Ministry of Trade Industry and Cooperatives a crucial role, given that their mandates link (MoTIC) directly to the priority areas of this Strategy. MoTIC, because of their involvement with the MDAs Trade Industry and Local Economic Development High department in the LGs, needs to cooperate with Impact MOLG, which supervises all LGs for the success of the NSLED. The DLRTs are central to the Secondary High Priority implementation of LED in LGs and are chaired Priority The Executive Civil Parliament, MoLG, by the Chief Administrative Officer with the City/ Society MoFPED, MoTIC, District/Municipal Commercial Officer as its Media MoGLSD MDAs Development Secretary. Partners Local Governments Private Sector Ministry of Gender Labour and Social Communities Development (MoGLSD) Low High The Ministry of Gender Labour and Social Impact Impact Development takes responsibility for matters Low Secondary Priority Priority relating to employment and special interest Suppliers Academia groups such as the youth, women, the elderly and Research Contractors Insititutions and persons with disabilities. Employment for Policy Think Tanks these categories is a major concern, and several initiatives, including funds/grants for youth and Low entrepreneurship, is currently managed through Impact the Ministry. MoGLSD plays a particular role Ministry of Local Government: The Ministry in increasing the active participation of women of Local Government is the parent institution and youth and is central to their mobilization of the NSLED and, for that matter, shall be for participation in the implementation of the responsible for coordinating MDAs and LGs and NSLED. MoGLSD has elaborate structures for supporting and monitoring local government in mobilization and reaches these groups. the implementation of the Strategy. The Ministry Local Governments: shall create an enabling environment and support The Local Governments are responsible for and monitor the LG’s LED performance. The LED coordinating the implementation within their department within the Ministry will be responsible geographical boundaries and mobilising for the coordination and operationalisation of stakeholders around the actualisation of a the Strategy. common agenda. In addition, LGs are responsible for coordinating, facilitating and enabling the Other MDAs: implementation of specific activities in this Ministry of Finance Planning and Economic NSLED within their territories. These activities Development (MoFPED) may include consultative processes to LED MoFPED coordinates and will provide finance for agendas and providing conditions in the locality implementing the NSLED. Their commitment to that will allow LED, such as reducing red tape this NSLED is paramount to its success and will and ensuring citizens have access to information. 12 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Non-state actors development, agricultural research and extension, and Private Sector: support in introducing information and communications As a direct beneficiary of LED, the private technology. sector has the primary responsibility of contributing to actualising the objectives 2.6. SWOT Analysis of the NSLED. They will play a critical role The quadrant below summarises the strengths, in sourcing employment opportunities, weaknesses, opportunities and threats for LED promotion investments, and revenues for LGs. and the NSLED. Working with other stakeholders, the private sector will foster competitiveness Table 1: Summary SWOT Analysis to ensure shared economic growth. Community Strengths: Opportunities: • Favourable legal and • Strong political will at Local communities play lead roles policy environment - the highest level – the as consumers, taxpayers, savers, and National LED Policy & Presidency. representatives who understand local LED as a critical devel- • Existence of potential needs and communicate these to relevant opment approach in partners for LED – pub- stakeholders. They also play an essential the NDP III. lic sector, private sector role in monitoring the implementation and community on the • Diverse actors are one hand and develop- and performance of the NSLED. LGs will involved in capacity ment partners. empower the communities to ensure building and awareness they take part actively in implementing creation. • Institutional framework interventions in the NSLED. They also and structures at the • Various donor-funded National and LG level play an important role in monitoring the LED programmes do in place. implementation and performance of LED exist (PRUDEV, RISE, • Skilling Uganda policy initiatives PRELNOR, DINU, – skilled labour. MATIP II, LEGS, etc.. Civil Society Organizations: • Abundant Natural re- • Existence of District sources – Land, Water, CSOs, including CBOs and NGOs (Local Development Plans. Minerals, Oil & Gas. and International), will complement • Security in the country • Available capacity public and private sector initiatives by and the region. building programmes mobilising community stakeholders to - in and out of the participate in and own LED interventions, country. especially in not adequately served • Availability of LED areas. CSOs/NGOs also play a particular experts. role in reaching marginalised areas • A Young population. and broadening the economic base of local communities through creating opportunities in these areas. Development Partners: Development Partners play a vital role in providing resources, including technical and financial assistance, to support the implementation of specific components of the Strategy. In addition, they make important contributions to the different economic sectors and spheres of LED, including value chain analysis and Re-igniting Local Resources and Self Help 13 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 addition, there are several existing Weaknesses: Threats: • Poor coordination • Poor coordination programmes and initiatives that can be within the Ministry between MDAs at exploited to promote LED at the LG level. • Inadequate awareness national and local levels Notwithstanding the existence of a legal of LED and policy framework and programmes • Capacity challenges in • Limited resources that would aid the implementation and MDAs on LED • Limited institutional coordination of LED initiatives, there is • Limited human capacity an overall limited internalisation and resources at the • Endemic corruption – localisation of some of these policies national and local level loss of public funds and synergies among programmes. • Absence of private • High population There is also a lack of guidelines for sector engagement at growth rate – strain on implementing LED policy provisions and the LG level scarce resources for inter programme coordination, especially • Lack of LED strategies development at the macro and micro level. at the LG level • Weak institutional Diverse actors involved in LED capacity in support A number of actors within the public organisations sector (MDAs), the private sector • Lack of adequate and civil society are involved in LED critical economic promotion directly or indirectly. In infrastructure Government, these include the UIA, MoFPED (PPP Unit, Competitiveness and Investment Climate Strategy (CICS)

2.6.1. Conditions that favour the Strategy Secretariat, etc.), MoTIC, Operation Wealth Creation, MAAIF etc. Capacity Favourable Legal and Policy Environment building for LED also has several actors The Government of Uganda has put in place laws and that include, Universities and Institutions favourable policies for social and economic development of higher learning, private sector business and LED. Specifically, the 1995 Constitution, LGA Cap development services (BDS) providers, 243, and the National LED policy (2014). The NDP III also recognises LED as a fundamental approach. Existence of donor-funded initiatives A number of donors such as the Germny Favourable environment for promoting LED Development Cooperation, the EU, Islamic The Constitution of Uganda has several provisions Development Bank, the World Bank, that support LED and poverty eradication3. Further, UNDP, UNCDF and USAID have projects the response to the poverty situation is contained in that promote LED. Such projects include the previous planning frameworks like the PEAP and – Enterprise Uganda (Skills Development its successor National Development Plans I, II and III. Facility), GIZ, (PRUDEV, RISE), PRELNOR, The Government has drawn on the principles of the MATIP, DINU, LEGS, etc. PEAP to formulate other operational policies like the Rural Development Strategy (RDS); the Competitiveness Existence of District Development Plans Strategy; National Agriculture Advisory Services (DDPs) (NAADS), Program for Modernization of Agriculture DDPs provide an integrated planning (PMA); Northern Uganda Social Action Fund – Vulnerable framework for LGs. LED projects are Group Support (NUSAF-VGS). These policies provide incorporated into these plans providing a conducive framework for LED implementation. In a basis for their funding from the central Government and other development 3. For the specific provisions refer to objectives iv, vii, ix to partners. xii, xv of the Constitution. 14 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Security Existence of Natural resources (Land, water, Security in the country is generally good and minerals) stable. This assures stability for private sector Uganda is endowed with vast arable land for businesses and investments; it can be leveraged agriculture, including commercial farming. to promote LED. In addition, the country has a wide range of minerals including oil & gas, gold, etc., and

2.6.2. Opportunities many rivers. Opportunities exist for hydropower generation, and tourism attractions range from Strong Political will culture, religion, nature, and historical sites. The political leadership in the country is These resources, if harnessed sustainably, can committed to job and wealth creation, increasing contribute significantly to LED. household incomes and economic transformation of the country into a Middle-Income Country. Capacity building programmes targeting LED This is spelled out in the country’s planning A number of academic institutions like the frameworks like Vision 2040 and the NDP as Uganda Management Institute and Makerere well as programmes funded by the government. University have LED-tailored courses on offer. These and other international institutions provide Existence of potential partners for LED an opportunity for equipping LED practitioners LED involves the public sector, the private with knowledge and skills relevant for LED sector, and the community principally. These promotion. Through the Skilling Uganda policy, stakeholders are active at varying levels in the the GoU empowers the population with in- economic development of their localities. The demand skills that increases employment and private sector is organised under the Chambers job creation opportunities. of commerce and other business member organisations. Community is organised in groups Availability of LED Experts and under Community-Based Organisations There are several LED experts in the country, (CBOs). Local and international NGOs with an some practicing in the private sector and others interest in social and economic development in the public sector, including academia. This also work on issues of livelihood enhancement, pool of experts brings on board various skills for income generation, and youth and women LED promotion. empowerment, among others. Other partners A young population that offers the opportunity include the development partners. Each category to harness the demographic dividend: Uganda’s of partners exhibits a range of skills and resources population is predominantly comprising young that they bring to the LED process. There will be people. This young population is more flexible, a need to streamline working relationships and mobile, willing to learn and capable of working structures that fully engage all the stakeholders. in the upcoming businesses. Institutional frameworks and structures at the National and LG level are in place 2.6.3. Constraints The Government has structures at the centre Poor coordination within the Ministry and in LGs that can be instrumental for LED LED is a multi-actor, multi-intervention promotion. At the national level, MOLG handles approach that requires a coordinated effort LG and coordinating the implementation of of all departments in the Ministry. Currently, LED across the Government. Several MDAs also departments operate primarily in silo formations, implement interventions that address a business which does not allow for synergy in the planning, / investment-friendly environment. At the LG implementing, and monitoring of LED-leaning level, structures exist up to the community level, interventions. and these can be utilised for LED promotion. Re-igniting Local Resources and Self Help 15 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Inadequate awareness of LED Absence of private sector engagement at LG There is insufficient (if any) mobilisation of the level. private sector and other non-state actors for LED. The lack of or low level of private sector engagement Poor mobilisation of stakeholders (community, at LG level undermines their participation in LED. public sector, private sector, and CSO actors) Most private sector organisations are very weak, undermines the effective implementation of which makes their effective representation on LED. With awareness comes mindset change that platforms rather difficult. There are no platforms should see greater cooperation and collaboration or forums for dialogue on issues in the business among stakeholders from issues and solution operating environment currently in LGs hence identification, planning, implementation and unfavourable environments. monitoring of Led initiatives and projects. Lack of LED strategy frameworks at the LG level. Weak capacity for planning, monitoring and Very few LGs have developed comprehensive evaluation at MDA and LG level LED strategies that propose viable interventions Whereas it is apparent that local governments based on an appraisal of their comparative and know what they want, there is still a weak competitive advantages in terms of economic capacity to put together strategies, programs, and potential and motivation and capacity of projects coherently. In particular, stakeholders’ stakeholders in the LG for enhancing LED inadequate understanding of the LED concept promotion. In the absence of LED strategies, makes it difficult to manage the LED process, initiatives can only be ad hoc with no apparent coordinate the different actors, and mobilise link for impact on the LED. their participation in planning and executing Inadequacy of key economic infrastructure LED. Weaknesses in MDAs mean they cannot The main reason for inadequate infrastructure is provide technical backstopping to LGs. local financial limitations. There is an insufficient Weak capacity in support organisations. number of skilled technicians/personnel to Existing community-based and civil society provide adequate infrastructure. Key economic organisations have not been able to positively infrastructure for LED includes roads, markets, impact community participation in the planning, warehouses/silos, power and water. implementation, and monitoring of interventions, including LED specific projects. This is partly 2.6.4. Challenges to developing Sustainable because of the lack of skills to engage the Local Economies citizens in a participatory way. Similarly, BMOs Some of the identified challenges that stand in the and farmer groups are often weak and rely on way of stimulating and developing sustainable donor funding to sustain their operations. This local economies include: undermines their ability to take part in dialogues forums and planning, implementation and Limited resources: Currently, funding for LED monitoring of LED initiatives, let alone mobilise projects is constrained by the unconditional their membership to do so. grants transfers from the central Government, which limits flexibility. Limited human resources at national and local level. Capacity constraints in logistics, human As of the end of 2021, the LED department at resources and skills the Ministry is inadequately staffed with only 5 Local governments and municipalities still technical staff. At the LG level, the situation is experience a shortage of personnel at all levels. dire, with only 1 staff in the TILED department. There is also a lack of skilled employees at all The inadequacy of staff undermines effective levels, including management. The requisite support to the LGs from the national level and tools and equipment are also lacking and all also from the LG to the stakeholders in the these undermine the effectiveness of the human districts. resources in the LGs. 16 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Uganda can build on the opportunities that Economic Challenges favourable education and skilling policies and Poor linkages between locally produced products the young population provide in addressing and markets and limited access to finance and these challenges. advisory services ensure that the private sector can avail of economic opportunities. LED Existing LED initiatives are not linked to the capacity building, value chain approaches and local reality programs for accessing finance are required. Existing LED strategies have primarily been initiated from the national level, with inadequate Poor Infrastructure involvement of the local actors. In most cases, the The infrastructural challenges faced in Uganda, strategies and plans do not adequately consider such as poor community access to roads, the background of the communities in question inadequate access to electricity, water for as well as the poverty level, cultural and interests production and poor sanitation, must not be of the local people. This results in low buy-in, underestimated. This Strategy and Action Plan hence undermining the success and impact of aims to address how to best cope with this issue these initiatives. and plan for the future. Participation by all stakeholders is crucial in the Weak Institutional Framework design of LED strategies and plans. Participation Weak institutional framework. Although the and involvement by the local community, the LED policy stipulates institutional arrangements business sector, and the Government play a for LED implementation at all levels, these pivotal role. This participation should involve arrangements have not been fully functional. To community-based organisations. promote LED, it is important to operationalise and build on the existing institutional frameworks and Low levels of citizen participation and weak establish and strengthen a suitable institutional stakeholder mobilisation pose a major challenge framework for LED. for LED promotion. It is vital to build on the social cohesion and capital that exist and capitalise on High Population Growth the structures already in place for participation in Uganda has one of the highest population growth LGs to ensure inclusive LED. rates, which poses a significant threat to economic growth and development. This is because a high Poor coordination between MDAs at national population significantly pressures land, leading and local levels: Similarly, MDAs are currently to land fragmentation, placing higher demands implementing many interventions that contribute for service delivery and requiring a high rate of to the LED policy objectives. There is no sharing job creation. of information, let alone engagement among MDAs, which undermines synergies and creates 2.7. Strategic Issues for Local Economic opportunities for duplication of efforts. Development Endemic corruption: Corruption in the The NSLED will build on the strengths, capitalise management of public resources is very endemic on opportunities while addressing weaknesses and needs to be urgently addressed if resources and threats, In particular, the following are key are to be freed for LED implementation. issues considered: i). Build the capacity of LGs to enable Reliance on consultants to design LED stakeholders to contribute to Local Economic programmes Development. In most cases, the consultants who design LED programmes are not local consultants. Therefore, ii). Encourage stakeholder involvement for they do not know the communities in which they ownership (social cohesion) and better work and do not fully understand and know the cooperation and coordination in planning, community’s needs. implementation and monitoring of LED Re-igniting Local Resources and Self Help 17 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 initiatives. support to LGs, the private sector and other economic actors whenever the need arises. iii). Use local level networks such as Public- Private platforms/forums to identify vi). Fund the implementation of the interventions challenges that need to be addressed in this strategy. collectively. vii). Support digitalisation of existing platforms iv). Develop tools, guidelines and regulatory for LED promotion and enhancement of instruments to enable consistency in monitoring and evaluation for learning. approaches and methods. v). Develop a pool of business development support experts that can provide technical 18 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Executive Director NAADS inspecting a mango farm of one of the beneficiaries of mango seedlings from NAADS in Kazo District Arua Hill Stadium Project developed Southern Range Nyanza Limited under a Public Private Partnership (NYTIL) Factory, Jinja City 3 STRATEGIC DIRECTION FOR LED PROMOTION Re-igniting Local Resources and Self Help 19 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

3.1. Introduction This chapter provides the context, core values, This strategy provides an overarching framework guiding principles, theory of change, strategic for the Ministry along with other MDAs and LG themes, and objectives. to initiate specific plans for implementation of LED that are aligned to the NSLED, the LG Sector The NSLED comes at a time when the country Strategy, and NDP III among others. has entered into a new planning period as reflected in the National Development Plan III. The vision and mission statement of this plan are It is therefore aligned to the key priorities and directly derived from the National LED Policy. approaches as proposed in the NDP III. The NDP This plan therefore seeks to contribute to the III specifically with the regional development achievement of the vision and mission of the approach and the parish development model LED policy. being key drivers of LED. Vision “A vibrant and competitive private sector-led local economy for poverty reduction, wealth creation and prosperity.” Mission To create local and national governance mechanisms which promotes a conducive, economic and political environment for private sector investment, employment creation in local areas for improved household incomes and service delivery.” Goal I: Goal II: Goal III: Goal IV: LED Planning and LED Advocacy and Public-Private Partnerships Governance and Operations Implementation in LGs Behavioural Change (PPPs) Strategies: Strategies: Strategies: Strategies • LED advocacy to policy • Capacity Building • Assessment of the level of • Strengthen engagements makers both at national • Documentation of LED knowledge, attitudes and between the Private- and local government projects practices of the LGs and Public Partnerships Unit • Strengthen coordination local CSO on LED and Local Governments of LED programme at the • Influence mindset change Business process review national and local among to promote LED and simplification government levels Regular both at the national and • Strengthen the legal and monitoring for local levels regulatory environment programme effectiveness Business Areas and and efficiency Adoption of Industrial Parks digital platforms • Strategy: Profiling of Investment Opportunities in LGs Values Integrity, Accountability, Desire to improve, Team work, Quality Delivery, Commitment:

3.2. Vision 3.4. Core Values “A vibrant and competitive private sector-led The Strategy is based on increasing the number local economy for poverty reduction, wealth of local jobs, sustainable household incomes, creation and prosperity.” and impact achievement. This is based on the following principles and values;

3.3. Mission a) Integrity: Dedication to serving with honesty, To create local and national governance high professional standards and good ethical mechanisms which promotes a conducive, conduct. economic and political environment for private sector investment, employment creation in local b) Accountability: Direct responsibility for the areas for improved household incomes and actions and decisions entrusted to us for the service delivery.” good of all public servants and citizens. 20 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 c) Desire to improve: Always striving to achieve 1.1.5. Supporting the re-tooling and equipping a greater user experience at a reasonable cost. of the LED department in the MoLG and the district commercial officer office to act d) Team work: Believing in combining expertise as secretariat for LED coordination and skills to achieve common goals. e) Quality delivery: Subscribing to achieving 1.1.6. Incorporate LED into DDP III value for money and quality delivery services within the perspectives of stakeholder’s Output 1.2. Key LG stakeholders sensitised on partnership. LED and buy-in increased f) Commitment: Dedicating our time, resources, 1.1.1. Develop national campaign materials for and skills to fulfilling the desired destiny. LED for key stakeholders

3.5. Strategic Goals 1.1.2. Conduct annual awareness campaigns on the LED process, objectives and progress The LED objectives contribute to achieving the higher goal of “Transformed LG systems linked to Objective 2. Increase the number of fully stakeholders at the local, national level to facilitate financed LED projects effective business-oriented focus on poverty Output 2.1. More fully funded LED projects reduction and sustainable wealth creation”, and across the regions this is structured into eight broad spectrums. Strategy: Documentation of LED projects across For each objective, the anticipated outputs the regions or immediate results are identified, and key Interventions strategies and their associated intervention are

1.1.1. Support LGs in conducting participatory/ provided. LED strategies provide the means rapid appraisal of competitive advantages of achieving the objectives, and each strategy (PACA/RACA) exercises in LGs / regions consists of interventions intended to deliver the to identify priority LED projects strategies.

1.1.2. Developing the selected/prioritised LED Goal I: LED Planning and Implementation in LGs projects based on the PACA exercise The focus here shall be on strengthening LG systems through the pursuit of the following 1.1.3. Mobilising resources for the objectives: implementation of the LED projects Objective 1. To strengthen capacities 1.1.4. Developing tools for assessing the status of MOLG and LGs for LED of LED projects conceptualisation, planning and 1.1.5. Conducting studies to determine the budgeting, implementation and location, size and status of LED projects monitoring. across the country Output 1.1: LED incorporated in Local

1.1.6. Developing and maintaining a database Governments Plans for LED project status, outputs and Strategy: Capacity Building of LGs Interventions: outcomes.

1.1.1. Conducting a LED needs assessment Goal II: LED Advocacy and Behavioural Change

1.1.2. Preparing a detailed LED capacity building Objective 3. To strengthen engagements Plan with CSOs for enhanced

1.1.3. Developing training manual for LED synergies, including integration of crosscutting issues (gender,

1.1.4. Conducting training of trainers for key HIV/AIDS, environment, and LED champions and facilitators both at the the vulnerable groups) in the national and LG levels. promotion of LED Re-igniting Local Resources and Self Help 21 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Output 3.1. Awareness of the LGs and Governments community on the importance of LED and their Interventions active participation for sustainable LED

1.1.1. Organise meetings for LG officials and Strategy: Assessment of the level of knowledge, economic actors to clarify the role of the attitudes and practices of the LGs and local CSO public and private sector in the economy on LED

1.1.2. Develop and disseminate guidelines for Interventions Private Public Dialogue (PPD) Platforms

1.1.1. Conduct a study to establish the current or forums in LGs level of knowledge, attitudes and 1.1.3. Facilitate the Establishment of PPD practices for LED platforms or forums in the LGs

1.1.2. Develop IEC material on LED both

1.1.4. Conduct sensitisation meetings for the manually and electronically private sector on the PPP policy and

1.1.3. Disseminate the IEC material to guidelines incorporate emerging issues

1.1.5. Coordinate support for identified potential

1.1.4. Organise LED promotional events at PPP projects in LGs with the PPP Unit national and local levels

1.1.6. Selecting, customising and implementing Strategy: Influence mindset change among to appropriate PPP modalities promote LED both at the national and local levels Interventions Objective 5. To create business enabling

1.1.5. Develop and disseminate guidelines for environment that facilitates business growth and increased LED forums/platforms investments

1.1.6. Re-activate and operationalise LED Output 5.1. A conducive regulatory framework forums/platforms for social dialogues at for improving productivity and competitiveness the local government levels created

1.1.7. Conduct LED forum/platform meetings Strategy: Business process review and with the CSO and private sector on the simplification benefits of LED Interventions:

1.1.8. Identify champions to promote knowledge 1.1.1. Review and reduce the time it takes to of LED and mobilise local resources to process applications; the cost to business; implement LED and minimise the number of forms to be filled for: Business registration; Licensing; Taxation;

1.1.9. Conduct consultations with women, youths and other socially marginalised and Business regulation (health and safety groups to ensure their inclusion in the inspection, workers protection etc.) LED planning process and projects Strategy: Strengthen the legal and regulatory environment Goal III: Public-Private Partnerships (PPPs) Interventions: Objective 4. To promote collaborative

1.1.2. Enact bye-laws and ordinances that partnerships with the private promote investment and growth, sector for local economic including buying local goods and services development Output 4.1. Commitment by the central and 1.1.3. Digitalising LG revenue collection local government to Private-Public Partnerships Strategy: Business Development Support or Private Sector investing in public goods

1.1.4. Establish one-stop centre to provide Strategy: Strengthen engagements between the business advisory services - registration, Private-Public Partnerships (PPP) Unit and Local taxation, financial services. 22 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

1.1.5. Promoting work-based training and Interventions: education for skills enhancement 1.1.4. Develop annual operational work plans for the national steering committee and Strategy: Business Areas and Industrial Parks working groups for coordination and

1.1.6. Upgrading of locally-based business monitoring areas through improvement in drainage,

1.1.5. Strengthen relevant existing coordination cleaning and garbage management mechanisms at the national and regional

1.1.7. Establish business incubators by providing levels to provide support to the LGs space for fledging businesses to operate at Objective 7. To monitor and evaluate strategy subsidised rental rates implementation

1.1.8. Supporting the establishment of business Output 7.1. LED strategy effectiveness and and industrial parks that are well serviced. efficiency assessed Output 5.2. New Investments in Local Strategy: Regular monitoring for programme Governments effectiveness and efficiency Strategy: Profiling of Investment Opportunities in Interventions: LGs

1.1.1. Researching and documenting the Interventions: application of new technology and

1.1.1. Disseminate guidelines for conducting knowledge Local Economic Business Assessments

1.1.2. Monthly reporting by the LGs and private

1.1.2. Conduct the Local Economic Business sector implementing LED Assessments

1.1.3. Developing a detailed national M&E

1.1.3. Support LGs to develop regional strategy for LED investment profiles and LED strategies

1.1.4. Conducting annual reviews of the LED Goal IV: Governance and Operations strategy Objective 6. To improve the policy 1.1.5. Developing and continuously updating coordination environment for LED database in a manner that makes it LED promotion accessible to stakeholders Output 6.1. Commitment by the national and local governments to LED promotion is Objective 8. To harness existing digital increased platforms for LED promotion Strategy: LED advocacy to policy makers both at and enhancement of strategy national and local government implementation Interventions: Output 8.1. Digital platforms utilised in LED

1.1.1. Develop policy briefs for high-level policy promotion and Monitoring and Evaluation makers Strategy: Adoption of digital platforms

1.1.2. Conduct sensitisation meetings with policy makers to appreciate LED and commit to Interventions its promotion for poverty eradication and 1.1.1. Assess existing digital platforms for job creation in the localities relevant information for LED promotion

1.1.3. Incorporate LED into government 1.1.2. Review and re-design relevant platforms planning and budgeting process at the relevant for capturing and sharing MDA level information Strategy: Strengthen coordination of LED 1.1.3. Encourage infrastructure and site sharing among Telecommunication/ICT programme at the national and local government Operators. levels Re-igniting Local Resources and Self Help 23 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Teju Fruit Concentrate Processing at Soroti Fruits Limited, Soroti City Participants at a National Planning Meeting in Commissioning Ceremony of Orion Electronics, Uganda Namanve Industrial Park 4 STRATEGY IMPLEMENTATION 24 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

4.1. Strategy Roll-out A comprehensive communications strategy for stakeholders to play their designated roles. this NSLED will be developed including the Being a multi-sector undertaking, the NSLED necessary tools and messages for a country-wide will involve various stakeholders’ participation information education and communication (IEC) to ensure efficient and effective implementation. campaign. For this, the roles of each stakeholder must be Targeted stakeholder and community awareness clearly understood, including how each one’s campaigns for buy-in of LED will be conducted roles impact that of other stakeholders in the at national and local levels. The object of these promotion of LED. campaigns will be to ensure LED and, the importance of stakeholders is well understood. 4.2. Coordination framework Successful implementation of the NSLED The Strategy will have a coordination framework require as a first step, informed and mobilized comprising: stakeholders, which in turn ensures a high level of i. National LED Steering Committee their participation in LED activities. Mobilization ii. National LED Propagation Team of MDAs and LGs is key for ensuring they accept their roles and fulfill their obligations in the NSLED iii. National LED Secretariat implementation plan. Successful implementation iv. Local Government of the NSLED also requires the willingness of all Institutional arrangements for LED Policy implementation at National and Local Government Levels Re-igniting Local Resources and Self Help 25 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 The National LED Steering Committee shall 4.3. National LED Propagation Team (NPT) provide policy guidance and oversight of The roles and responsibilities of the NLPT will LED policy and Strategy implementation. include: The Permanent Secretary Ministry of Local i). Formulate a National LED vision to provide Government will chair the committee. Each an overall framework required to determine interested group shall establish its own LED the direction of LED, considering the structure or committee to cater to its requirements, regional/local variations that reflect the which requirements shall be forwarded to the diverse nature of local economies and their National Steering Committee. It will comprise comparative advantages. Permanent Secretaries from the following ii). Support the institutionalisation of LED institutional membership: governance functions and processes at a. Office of the President district and municipal levels. b. Ministry of Local Government iii). Formulate and disseminate the National LED c. Ministry of Finance, Planning and Economic policy and Strategy. Development iv). Advocate for integrating LED governance d. Office of the Prime Minister planning instruments into the planning e. Ministry of Trade Industry and Cooperatives guidelines at the National and local levels. f. Ministry of Water and Environment Uganda v). Support the Secretariat in identifying new National LED Policy programming areas and innovations. g. Ministry of Works and Transport vi). Support the Secretariat in identifying, h. Ministry of Lands Housing and Urban documenting and disseminating best Development practices in LED implementation for i. Ministry of Agriculture Animal Industry and replication. Fisheries The MoLG will constitute the NPT composed j. Ministry of Energy and Mineral Development of focal persons or representatives of various national institutions, private sector, development k. Ministry of Gender Labour and Social partner organisations, CSOs and LED practitioners Development to support and engage into a national effort l. Ministry of East African Community Affairs jointly and a formalised process for enhancing m. Ministry of Justice and Constitutional Affairs the national context of LED. In addition, the committee shall also include: The membership will include: Government representatives of LG’s (ULGA), relevant ministries (MoLG, MoFPED, OPM, MTTI, regulatory bodies such as the Uganda Revenue MAAIF); government agencies and programs Authority (URA), Uganda Local Government (NPA, NAADS, OWC, MTCS); ULGA; Finance Commission, National Planning development partners; NGOs with a track record Authority (NPA), National Agricultural Advisory of LED implementation; and private sector LED and Development Services (NAADS), Electricity practitioners. The working modalities of the LED Regulatory Authority (ERA), Uganda National Propagation Team will be discussed during the Bureau of Standards (UNBS), National Agricultural ToT. To allow for continuity and institutional Research Organization (NARO), Bank of Uganda, memory, individual members will be permanent Uganda Communication Commission (UCC) and institutionalised with clear roles, membership and Media, Uganda Investment Authority (UIA), and support. representatives of development partners, private sector, civil society and higher institutions of learning. 26 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

4.4. National LED Secretariat of the TPC, a District/Municipal LED Resource The LED department at MOLG will be the Team (DLRT/MLRT) will be constituted at the secretariat and coordination office at MoLG. The higher local government level. The LED resource Secretariat shall be responsible for the following: team will be composed of local government staff i). Ensure harmonised approaches and responsible for activities related to investment synergies between the different systems and promotion with the District Commercial Officer programs; (DCO) as Secretary, CSO and private sector representatives selected from the umbrella ii). Share experiences and lessons learned (best organisations. and worst practices); iii). Develop appropriate reference and IEC The roles and responsibilities will include: materials; i). Internalise, and champion LED in Local Governments iv). Identify, train and mentor district and national stakeholders; ii). Setup and coordinate the district/municipal LED Forum v). Ensure quality assurance; iii). Plan for and coordinate LED activities, vi). Provide a link between National and Local including conducting local economy and Government level actions on LED; business assessments vii). Serve as a depository for all relevant LED iv). Support the preparation of a District LED reference materials and support LGs in Strategy establishing LED Resource Centers under v). Monitoring of LED interventions the Office of the DCO; vi). Convene monthly meetings to review viii). Identify LED Champions and Local targets and set targets Economic Development Agencies (LEDAs) vii). Develop an inventory of LED initiatives in at national and local government levels the district or municipal authority and provide them with the required skills to perform this function; viii). Ensure incorporation of LED activities in district planning and budgeting frameworks ix). Monitor the implementation of LED Policy Objectives by the relevant institutions; ix). Document and disseminate information about LED x). Establish a mechanism for collaboration and promotion of partnerships between various x). Identify champions of LED in both the categories of players in LED, especially at public and private sector and provide the local level; and them with the necessary skills and tools to advocate for LED xi). Ensure that LED is mainstreamed in relevant policies, plans and strategies. At the lower LG level, the TPC, under the chairmanship of the Sub-County Chief or Assistant Besides the dedicated staff at the LED department, Town Clerk, will be responsible for LED activities. technical advisors will from time to time be The TPC will provide technical direction to the brought on board to build the capacity of staff Sub-county LED Resource Team composed of through on-the-job training. local government staff responsible for activities related to investment promotion with a CDO as

4.5. Institutional Arrangements at LG level Secretary, CSO and private sector representatives Although LED will be implemented as part of selected from the umbrella organisations and/or the mainstream local government activities, it key actors in LED promotion. requires special support and implementation modalities, given its uniqueness. Under the At the parish level, the Parish is headed by chairmanship of the CAO and technical direction a Parish Chief who is mandated to support Re-igniting Local Resources and Self Help 27 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 communities to develop Parish Development and practical Training of Trainers on LED Plans in a participatory process and elect a Parish approaches/tools for the NPT. During the process, Development Committee (PDC) to ensure the a sample of districts will be used to practically implementation of the laid-out plan. In effect, test the applicability of the used LED approaches the Parish Chief, along with the other technical and tools (like PACA). In the process, the LED staff, shall constitute a LED resource team with Propagation Team will develop LED reference the representation of the private sector and materials, including an orientation curriculum, community to champion LED activities in the materials and guidelines. The indicative content Parish. of the reference materials (Users Guide) includes: local economic assessments; strategies for

4.6. LED Strategy Implementation Framework exploiting macro policies for implementation of The implementation of the LED Strategy will LED at the local government level; definition of require a comprehensive and often iterative elements of a LED initiative; formats for developing process which will include the further a local government level LED inventory; LED elaboration of the strategic actions outlined in promotion tools; criteria for accessing support to this Strategy. This section provides a framework implement the strategy; linkage of LED promotion for implementing the proposed activities within to development planning informing the revision the strategy grouped according to thematic of the development planning guidelines. areas rather than logical sequence. The effective implementation of these activities will require 4.6.2. LED Implementation Support Activities a strong appreciation and internalisation of the Development of District level LED inventory LED concept and practice primarily. This will entail continuous assessment and registration of ongoing initiatives from the Sub-

4.6.1. Orientation and Popularization Activities county level using a developed registration Orientation of national and local level stakeholders format adopted from related structures. The The national and local stakeholders will include inventory will provide the basis for institutional MDA and LG staff and elected leaders, CSO strengthening and support and will enable the and the private sector. The orientation will use capturing of lessons of what works and what a multi-pronged strategy, including radio talk does not work. shows, brochures, a website, radio spots and Support local governments to initiate and jingles, newsletters, workshops and lectures. implement LED Orientation of stakeholders on LED is intended to make the key stakeholders appreciate LED This will involve: concepts and approaches, get clear backing and a) Customizing and pilot testing of LED tools pre-test the user’s guide. The orientation will like PACA to sampled local governments as include a presentation of an updated inventory of part of the ToT LED approaches in Uganda and a briefing on the b) A sampling of local governments where the process, results, lessons and experiences of some different LED tools and approaches will be of the tools in use; a presentation and discussion of piloted to determine applicability in different the practical differences and complementarities localities and circumstances. The key criteria between the different approaches/models and for the district’s inclusion in the pilot will programs for promoting LED include interest, willingness, and ability to use Training of Trainers Course for Propagation the local resources to host LED pilot activities. Team and Development of LED Users Guide c) Support detailed appraisal of the local This will involve: identification, screening (during economy, identifying economic potentials ToT) and launching of the NPT and conceptual and proposing ways of building on them and 28 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 dealing with the challenges (local economic Low Staffing Medium Advocate for in- assessments). levels in LGs creased funding for d) Development of a District LED strategy wages. (and investment profile) that should be Service deliv- High Conduct mindset ery mind-sets change trainings. incorporated into the LG development plan Introduce a sys- and CBP. tem of recognising e) Backstopping and supporting the local champions and sanctions to stim- governments to implement the LED programs, ulate better perfor- including follow-up training and coaching. mance. f) Identification and use of non-state Local Ineffective High Develop a robust Economic Development coordination monitoring M & E system for bodies in backstopping and monitoring the & evaluation the LED department implementation of a LED initiative. system and link to LGs to facilitate the cap- g) Develop criteria for agencies to access ture and analysis support, including supporting CSOs to of data on LED implement aspects of LED where they have a implementation and competitive advantage. results. Monitoring and Documentation External a) Documentation of key experiences and Inadequate High Engage central best practices. government to funding for the b) Developing a system of rewarding good implementation increase funding to performers covering local governments, the of the plan the Sector Engage Develop- private sector and CSOs. ment Partners to c) Publicising, dissemination and supporting support the imple- mentation of the replication of good practices. plan. d) Review and refinement of LED strategy as Advocate for part of JARD process. implementation of the constitutional e) Monitor implementation of LED as part of financial transfers to LGSIP CRM process LGs. f) Formulation of the LED Policy Inadequate High Engage all stake- coordination holders at all stages and of the implementa-

4.7. Risks and Mitigation tion of the plan. collaboration Key envisaged internal and external risks with the mechanisms Organize regular potential to impact negatively the realisation of meetings of the the NSLED objectives and outcomes have been various institutional structures provided summarised in Table 4.1 below. in the policy and Table 2: Risks Envisaged in Implementation of captured in the NSLED. the NSLED and Possible Mitigation Measures Risk Probability Mitigation New policy High Engage with MDAs Internal changes which to harmonize their Inadequate High Continuous advo- may under- policies with de- allocation of cacy for funding mine decen- centralization and, funds for plan with government tralization more specifically, implementa- and development LED policy objec- tion partners tives. Re-igniting Local Resources and Self Help 29 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

4.8. Sustainability Arrangements to operate in the LGs, thereby creating Funding for the plan and LED initiative is employment opportunities and providing tax envisaged to be drawn from the Consolidated revenue. In addition, the empowerment of Fund, locally generated revenues, the Private communities (mindset change) to patriciate Sector, and development partner support. actively in their locality development and in turn realise an increase in household incomes and, in By its very nature, LED is a sustainable approach the long run, contribute to increased household since it embraces collective action on the productivity and Incomes. With more revenue, part of the public sector, businesses, and the LGs are better placed to deliver services in their community. Central to realising this will be localities sustainably. creating a conducive environment for businesses 30 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 UNRA officials monitoring the progress of the Kampala Flyover Road Upgrading Project Agricultural produce ready for Field monitoring at a local market sale - in Agago district in Omoro District 5 STRATEGY MONITORING AND EVALUATION Re-igniting Local Resources and Self Help 31 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

5.1. Monitoring The strategy will be continuously monitored required adjustments in the strategy design. to assess its success concerning agreed Both process and outcome evaluations shall schedules and the use of inputs, infrastructure, be conducted. and services by strategy beneficiaries. A Central to evaluations will be the objective strategy monitoring committee will be put in of learning and accountability/ transparency. place. The purpose is to provide MOLG and The strategy evaluation shall assess both other stakeholders with continuous feedback process and outcomes in relation to strategy on implementation. Actual or potential implementation. Process evaluation will successes and problems shall be identified involve the systematic examination of early to measure progress and facilitate timely implementation quality, value for money, adjustments to strategy implementation. and choice of options. Monitoring will be based on annual plans Outcome evaluations will primarily seek derived from the five-year strategy with to measure changes (short, medium and clearly laid out indicators for the key strategy long term) resulting from implementing elements. These will be consolidated to interventions of projects under the strategy. determine program success and provide an overall assessment of LED strategy 5.3. Reporting implementation. Information on the LED M&E E-system will The Ministry and other implementation be summarised in quarterly and annual stakeholders will carry out repeated reports for dissemination to all stakeholders, quarterly, semi-annual and annual meetings evaluators, and strategy users. to discuss results in the ongoing planning

5.4. Monitoring and Evaluation Results and learning processes. A monitoring and Matrix evaluation strategic workshop will be held at the start of strategy implementation for key The results matrix summarises the expected stakeholders to establish an M&E timetable, outcomes and outputs, and their respective including scheduled reviews of content and indicators, including baselines and sources process indicators. of verification. Annex 1 provides the Results Framework

5.2. Evaluation

5.5. Strategy Review The Ministry will conduct an assessment to establish how the strategy outcomes A mid-term review of the strategy will be were realised at the end of strategy carried out mid-way through the planned implementation. The evaluation will adopt period to enable the Ministry to determine the OECD-DAC evaluation criteria that assess how its LED strategy progresses, gaps and the relevance, efficiency, effectiveness, challenges in implementing its strategy, and impact, and sustainability. Further, an how challenges/mistakes might be rectified interim evaluation will be conducted during to ensure success over the remaining period. strategy implementation as the first review Besides the Mid-term review, annual reviews of progress. It will serve as a forecast for shall reflect on progress in achieving strategic the strategy’s likely effects and identify the objectives and goals. The revision will be 32 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 guided by a monitoring and evaluation review process. To achieve holistic results, plan that establishes the procedures and public opinion shall be sought in reviewing/ indicators for assessing the LED strategy assessing the LED strategy implementation planning process and implementing processes. Strategy review shall consider the programs and projects. The District LGs use of use of surveys and focus groups on and Municipal Councils and the national soliciting valuable information. steering committee shall be involved in the Re-igniting Local Resources and Self Help 33 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Minister of Finance, Planning and Economic Development arriving at Parliament to read the Uganda National Budget 2020/21 President Museveni hands over a 60BN Dummy Cheque and flags off agro-processing Soroti Fish Farming Project, Soroti District equipment for smallholder farmers, Wakiso District 6 FUNDING LED 34 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

6.1. Sources of Funding Financing for this strategy will primarily be 6.2.2. Central governments transfers derived from the national budget. In addition, The Central Government allocations to funding is also expected from Uganda’s the LGs are currently in two forms: direct development partners for specific programs transfers and those channelled through and private sector actors such as financial government programmes and departments. institutions (banking and non-banking The Government will increase funding institutions such as pension funds, MFIs, to LGs to enable them to support LED MDIs, SACCOs and insurance companies) initiatives. Through the national budget, the through their corporate social responsibility Ministry of Finance will create a budget line (CSR) allocations. for LED programmes in all LGs as part of the conditional grants. The utilisation of the funds

6.1.1. Central Governments Transfers will be per the LED financing guidelines. Activities coordinated and implemented by the MoLG and other MDAs shall be funded 6.2.3. Local Finance Initiative (LFI) through the Central Government allocations LFI is intended to unlock Uganda’s domestic to the MDAs for capacity building, monitoring financial system to finance LED infrastructure and evaluation and facilitating linkage. programmes at the LG level. LFI uses risk mitigation and credit enhancement

6.1.2. Funding from Development Partners methodologies, such as non-recourse project The strategy will be presented to development financing in which the project owners partners to solicit their support for the LED (sponsors) are liable only for the amount of initiatives under a mechanism agreed upon their equity investment. At the same time, with the Government. Further bi-lateral the local banks and institutional investors funding arrangements will be pursued. provide 70% - 75% of the remaining financing needed for the project.

6.1.3. Private sector funding through Corporate Social Responsibility LFI shall be adapted to financing small and Corporations will be mobilised and medium-sized infrastructure projects, which encouraged to partner with LED to support may be capital intensive or social service- specific interventions as part of their focused requiring special technical skills or corporate social responsibilities. experience. Development Partners (finance institutions and donor agencies) will be

6.2. LG Financing mobilised to provide project development support, credit enhancement, and technical

6.2.1. Local Government Generated Revenue assistance to LED-related projects. In The Uganda Constitution and the Local addition, LFI will provide capacity-building Governments Act (1997), amended in 2001, interventions to enable the scaling-up and mandate LGs to raise local revenue through adoption of these alternative financing taxes like market duties, trading licenses, approaches as well as online communication property rates, local service and hotel tax, platforms to increase the Government’s etc., to finance activities under their mandate. capacity to coordinate across agencies and A review of LG’s tax base will significantly the private sector. As detailed in the annex, enhance its contribution to implementing the LFI online communication platforms LED initiatives. will increase the effectiveness of intra- Re-igniting Local Resources and Self Help 35 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 governmental coordination, stakeholder outputs. However, budgets will be developed mobilisation, and private sector engagement. annually based on annual work plans, and sources of funds will be determined.

6.3. Budgets The total budget for this strategic plan is UGX Indicative budget estimates have been 9,845,000,000 or USD $ 2,734,722.22. provided based on the key themes and Table 3: Budget Estimates for Key Ouputs Sn Goal / Outputs Total Cost (UGX) Total Cost (USD) 1 LED Planning and Implementation in LGs LED incorporated in LG’s plans. 1,325,000,000 368,055.56 Key LG stakeholder sensitized on LED and buy-in in- 1,385,000,000 384,722.22 creased More fully funded LED projects across the regions. 797,500,000 221.527.78 2 LED Advocacy and Behavioral Change Awareness of community on the importance of LED and 895,000,000 248,611.11 their active participation in sustainable LED. 3 Public-Private Partnerships The central and LG’s commitment to Private-Public Part- 600,000,000 166,666.67 nerships or Private Sector investing in public goods. Conducive regulatory framework for improving produc- 1,475,000,000 409,722.22 tivity and competitiveness created New Investments in LGs. 762,500,000 211,805.56 4 Governance and Operations Commitment by the national and LG to LED promotion 880,000,000 244,444.44 is increased LED strategy effectiveness and efficiency assessed 1,625,000,000 451,388.89 Digital platforms utilised in LED promotion 100,000,000 27,777.78 GRAND TOTAL 9,845,000,000 2,734,722.22 Central government transfers to LGs for LED i). organising a development partners conference and additional funding through budgets of ahead of the strategy launch to obtain their MDAs for activities in LGs. indicative funding estimates for key themes aligned to their country strategies. Annex 2 provides the Summary Budget ii). developing funding concept notes and Estimates proposals for specific projects and sharing with potential funding partners and.

6.4. Resource Mobilisation A detailed resource mobilisation plan will iii). organising events and securing corporate sponsorships for these events from the private be developed for this NSLED. Key resource sector. mobilisation activities will include: 36 Re-igniting Local Resources and Self Help

Annex 1: Results Matrix Plan Action Plan for implementation of the National Strategy for Local Economic Development (NSLED) Strategic Objective #1: To strengthen capacities at MOLG and LGs for LED conceptualization, planning and budgeting, implementation and monitoring. Output 1.1: Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 ment of the target LED incorporated in Local Governments Percentage of LGs with LED incorporated 0 30 34 34 34 Plans. in their DDP III rained in LED Interventions / Activity Time frame Responsible Institu- Indicators Means of Verification tions Conducting a LED needs assessment 2021/22 MOLG Capacity needs identified Needs Assessment Report MOTIC Preparing detailed LED capacity building 2021/22 MOLG Capacity development Capacity Development Plan Plan MOTIC actions identified Developing training manual for LED 2021/22 MOLG LED Training materials Training Manual MOTIC ACADEMIA Conducting training of trainers for key 2021/22 MOLG No of ToTs trained and Training Report LED champions and facilitators both at MOTIC mentored national and LG level. LGs Supporting the retooling and equipping Continuous MOLG No of LGs retooled / Distribution lists of tools and of the LED Department at MOLG and MOTIC equipped equipped provided to LGs the district commercial office to act as MOPS secretariat for LED coordination Incorporate LED into DDP III 2021/22 & 2022/23 LGs No of LGs DDP IIIs with Annual plans and budgets MOLG LED incorporated Output 1.2. Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 ment of the target Key LG stakeholder sensitized on LED Percentage of LGs where key stakeholders 0 30 34 34 34 and buy-in increased (political, technical and civil society) were trained/sensitized on LED. Re-igniting Local Resources and Self Help Develop national campaign materials for 2021/22 MOLG Campaign materials devel- Campaign materials LED for key stakeholders MOTIC oped Conduct annual awareness campaigns Continuous LGs No. districts in which LED Reports – Awareness cam- 37 on LED process, objectives and progress MOLG campaigns are held paigns NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 38 Strategic Objective #2: Increase the number of fully financed LED projects. Output 2.1. Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 ment of the target More fully funded LED projects across Number of funded LED projects across the 0 30 30 30 30 the regions. regions Interventions / Activity Time frame Responsible Institu- Indicators Means of Verification tions Disseminate guidelines and tools for con- 2021/22 MOLG No of LGs provided with LG Distribution lists ducting PACA MOTIC PACA guidelines and UIA tools. Support LGs to conduct Participatory/ 2022/23 onwards LGs Competitive advantages PACA Reports Rapid Assessment of Competitive Advan- MOTIC identified in LGs tage (PACA/RACA) MOLG UIA Develop LED projects based on the 2022/23 onwards LG No of LED projects devel- LED project proposals Re-igniting Local Resources and Self Help PACA exercise that also target women, MOLG oped for financing. youths and other socially marginalized No. of packages developed. groups No. of people targeted by programmes. Mobilise resources for project implemen- 2022/23 onwards LGs No of LED projects fi- Financing Agreements. tation MOLG nanced. Profiles of funded projects. NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 No of LED projects imple- mented. Conducting studies to assess location, 2022/23 onwards MOLG Terms of reference for Study Reports size and status of LED projects across the LGs studies regions Project assessment tools Developing and maintain database for 2022/23 MOLG Up-to-date LED projects Database LED project status, outputs and outcomes LGs database Strategic Objective #3: To strengthen engagements with CSOs for enhanced synergies including integration of crosscutting issues (gender, HIV/AIDS, environment, and the vulnerable groups) in the promotion of LED. Output 3.1. Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 ment of the target Awareness of community on the impor- Number of LGs with operational LED 0 64 64 64 64 tance of LED and their active participa- Forums. tion for sustainable LED Interventions / Activity Time frame Responsible Institu- Indicators Means of Verification tions Conduct a study to establish the current 2022/23 onwards MOLG Gaps in knowledge, KAP study report level of knowledge, attitudes and practic- THINK TANKS attitudes and practices on es for LED ACADEMIA LED identified Develop IEC material on LED both man- 2022/23 onwards MOLG IEC materials developed IEC materials ually and electronically MOTIC LGs Disseminate the IEC material to incorpo- 2022/23 onwards MOLG No of LGs provided with Distribution Lists rate emerging issues LGs IEC materials Organize LED promotional activities at 2022/23 onwards MOLG No. of awareness raising Reports of information cam- the national and local levels LGs campaigns paigns Undertaken. Radio transcripts No. of radio and tv broad- casts of town meetings per district Develop and disseminate guidelines for 2021/22 onwards MOLG No of LED platform Tors Distribution lists operationalizing LED forums/platforms LGs disseminated Re-activate and operationalize LED fo- 2021/22 onwards LGs No of LED forums re-reac- Dialogue meeting reports rums/platforms for social dialogue at the MOLG tivated / established local government levels No of dialogues held Conduct LED forum/platform meetings 2022/23 onwards LGs No. of LED Forums meet- Reports of meetings with the CSO and private sector on the MOLG ings with CSO and private benefits of LED CSOs sector actors held PSAs No. of districts with op- erational Private Public Dialogue (PPD) forums. Identify champions to promote knowl- 2022/23 onwards LGs No of LED champions Inventory of LED champions edge on LED and mobilize local resourc- identified in the DLG es to implement LED Re-igniting Local Resources and Self Help Conduct consultations with women, 2022/23 onwards LGs Consultations held with Reports of Consultative youths and other socially marginalized CSOs women, youth, PWDs. meetings groups to ensure their inclusion in LED planning process and projects 39 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 40 Strategic Objective #4: To promote collaborative partnerships with the private sector for local economic development Output 4.1. Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 ment of the target Commitment by the central and local Percentage of LGs with operational Private 0 10 10 20 31 government to Private Public Partner- Public Dialogue Platforms (PPDs) ships or Private Sector investing in public Number of Private Public Partnerships en- goods. tered into at CG and LG levels respectively. Interventions / Activity Time frame Responsible Institu- Indicators Means of Verification tions Organize meetings for LG officials and 2021/22 onwards MOLG No of meetings with LG economic actors to clarify the role of the LGs Officials public and private sector in the economy Develop and disseminate guidelines for 2021/22 onwards MOLG PPD forums established PPD Governance Structures Private Public Dialogue (PPD) Platforms LGs Re-igniting Local Resources and Self Help or forums in LGs Private Sector CSOs Facilitate the Establishment of PPD plat- 2021/22 onwards LGs,MOLG, PPD forums held PPD Resolutions forms or forums in the LGs Private Sector, CSOs Conduct sensitization meetings for the 2021/22 onwards MFPED/PPP Unit Awareness of opportuni- Reports of meetings private sector on the PPP policy and MOLG, ties NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 guidelines LGs, Private Sector Coordinate and mobilise support for 2021/22 onwards MFPED/PPP Unit No. of PPPs structured in Reports of support provided identified potential PPP projects in LGs MOLG, MoTWA, LGs to LGs to tap into the PPP with the PPP Unit LGs, Private Sector arrangements Selecting, customizing and implementing 2021/22 onwards MFPED/PPP Unit No. of PPPs entered into at Report of support provided appropriate public private partnership MOLG, MoTWA, CG and LG levels respec- to LGs to tap into the PPP modalities LGs,Private Sector tively. arrangements Objective 5. To create business enabling environment that facilitates business growth and increased investments. Output 5.1. Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 ment of the target Conducive regulatory framework for im- Number of business process reforms in LGs 0 5 5 5 5 proving productivity and competitiveness Number of pro-business ordinances enact- created. ed in LGs Interventions / Activity Time frame Responsible Institu- Indicators Means of Verification tions Review and reduce the time it takes to 2021/22 onwards LGs Reduction in time for Client service charters process applications; the cost to busi- MOLG, No of LGs ness; and reduce number of forms to be MOTIC, filled for: Business registration; Licensing; UIA, Taxation; and Business regulation (health UEPB, and safety inspection, workers protection URSB, etc.) UNBS Enact bye-laws and ordinances that pro- 2021/22 onwards LGs No. of business process Ordinances. mote investment and growth including MOLG, reforms in LGs. Byelaws. buying local goods and services MOJCA No. of pro-business ordi- nances enacted in LGs. Digitalizing revenue collection 2021/22 onwards LGs Revenue sources and Financial / Audit Reports MOLG, collection streamlined and LGFC digitalized in LGs Establish one-stop-centers to provide 2021/22 onwards LGs, MOLG No of LGs with one-stop- Site Visits business advisory services - registration, MOTIC, UIA, centers taxation, financial services UEPB, URSB, UNBS Promoting work-based training and edu- 2021/22 onwards LGs No of persons skilled Training reports cation for skills enhancement Upgrading of locally-based business 2021/22 onwards LGs Improvements in the busi- Site visits areas through improvement in drainage, ness areas cleaning and garbage management Establish business incubators by pro- 2021/22 onwards LGs No of business incubators Site visits viding space for fledging businesses to MOLG established operate at subsidized rental rates UIRI Support the establishment of business and 2021/22 onwards LGs, MOLG No of industrial parks Site Visits industrial parks that are well serviced UIA established Land Titles Output 5.2. Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 Re-igniting Local Resources and Self Help ment of the target New Investments in Local Governments. Percentage increase in new businesses 0 10 10 10 10 registered and operational in LGs/regions 41 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 42 Interventions / Activity Time frame Responsible Institutions Indicators Means of Verification Disseminate guidelines for conducting of 2021/22 onwards MOLG LEBA tools and guidelines. Distribution lists to LGs Local Economic Business Assessments Support LGs to conduct the Local Eco- 2021/22 onwards LGs No of LGs that have con- LG Economic Profiles nomic Business Assessments MOTIC ducted. Local Opportunities iden- tified Support LGs to develop regional / district 2021/22 onwards LGs No of regional LED strate- Regional LED strategies investment profiles and LED strategies MOTIC gies developed LG LED strategies MOLG No of districts LED strate- ULGA gies developed Percentage increase in new businesses registered and operational in LGs Strategic Objective #6: To improve policy coordination environment for LED promotion Output 6.1: Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 Re-igniting Local Resources and Self Help ment of the target Commitment by the national and local Percentage increased central government 0 2 2 5 5 government to LED promotion is in- funding for LED initiatives. creased Interventions / Activity Time frame Responsible Institutions Indicators Means of Verification NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Develop policy briefs for high level poli- 2021/22 onwards MOLG Increased central gov- cy makers MOTIC ernment funding for LED initiatives Conduct sensitization meetings with poli- 2021/22 onwards MOLG No. of ministries attending Meeting Reports cy makers to appreciate LED and commit MDAs meetings to its promotion for poverty eradication and job creation in the localities Incorporate LED into government plan- 2021/22 onwards MDAs LED incorporated into Annual Plans & Budget ning and budgeting process at MDA level MOLG plans & budgets Develop annual operational workplans 2021/22 onwards MOLG Schedule of SC meetings SC meeting reports for national steering committee and MDAs developed working groups for coordination and No of SC meetings held monitoring Strengthen relevant existing coordina- 2021/22 onwards MOLG No of regional coordina- Reports – Regional Coordi- tion mechanism at the regional levels to LGs tion mechanisms strength- nation provide support the LGs ened Strategic Objective #7: To monitor and evaluate strategy implementation Output 7.1: Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 ment of the target LED strategy effectiveness and efficiency Progress in LED implementation measured 0 20 25 25 30 assessed Interventions / Activity Time frame Responsible Institutions Indicators Means of Verification Researching and documenting applica- 2021/22 onwards MOLG Progress in LED imple- Study reports tion of new technology and knowledge LGs mentation measured Monthly reporting by the LGs and private 2021/22 onwards LGs LED actions implemented LG reports sector implementing LED MOLG Developing detailed national M&E strat- 2021/22 onwards MOLG M&E processes M&E Strategy egy for LED LGs Conducting annual reviews of the LED 2021/22 onwards MOLG Progress, challenges iden- Annual Reports strategy LGs tified Developing and continuously update 2021/22 onwards MOLG Data on LED implementa- Database LED database in a manner that makes it LGs tion across LGs accessible to stakeholders MDAs Strategic Objective #8: To harness existing digital platforms for LED promotion and enhancement of strategy implementation. Output 8.1: Indicator (s) for measuring the achieve- Baseline 2021/22 2022/23 2023/24 2024/25 ment of the target Digital platforms utilised in LED promo- Number of LED digital platforms estab- 0 4 4 5 5 tion and Monitoring and Evaluation lished and operational Interventions / Activity Time frame Responsible Institutions Indicators Means of Verification Assess existing digital platforms for rele- 2021/22 onwards MOLG No of LED digital plat- Digital platforms vance to LED Promotion Private Sector forms reviewed and MOICT improved Review and re-design relevant platforms 2021/22 onwards MOLG No of LED digital plat- Digital Platforms relevant for capturing and sharing infor- Private Sector forms established and mation MOICT operational Re-igniting Local Resources and Self Help Encourage platform sharing among Tele- 2021/22 onwards MOLG No of LED digital plat- MoUs between ICT opera- communication/ICT Operators MOTIC forms established and tors MOICT operational 43 UCC NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25

Annex 2: Five-Year Summary Budget Estimates Strategic Objective #1: To strengthen capacities at MOLG and LGs for LED conceptualization, planning and budgeting, implementation and monitoring. Output Total Cost 1.1.   LED incorporated in in Local Governments Plans. 1,325,000,000 Interventions / Activity 1.1.1. Conducting a LED needs assessment 50,000,000 1.1.2. Preparing detailed LED capacity building Plan 30,000,000 1.1.3. Developing training manual for LED 20,000,000 1.1.4. Conducting training of trainers for key LED champions and facilitators 150,000,000 both at national and LG level. 1.1.5. Supporting the retooling and equipping of the LED Department at MOLG 675,000,000 and the district commercial office to act as secretariat for LED coordination 1.1.6. Incorporate LED into DDP III 400,000,000 Output Total Cost 1.2.   Key LG stakeholder sensitized on LED and buy-in increased 1,385,000,000 Interventions/Activities 1.2.1. Develop national campaign materials for LED for key stakeholders 35,000,000 1.2.2. Conduct annual awareness campaigns on LED process, objectives and progress 1,350,000,000 Strategic Objective #2: Increase the number of fully financed LED projects. Output Total Cost 2.1.   More fully funded LED projects across the regions. 797,500,000 Interventions/Activities 2.1.1. Disseminate guidelines and tools for conducting PACA 20,000,000 2.1.2. Support LGs to conduct Participatory/Rapid Assessment of Competitive 262,500,000 Advantage (PACA/RACA) 2.1.3. Develop LED projects based on the PACA exercise that also target 175,000,000 women, youths and other socially marginalized groups 2.1.4. Mobilise resources for project implementation 60,000,000 2.1.5. Conducting studies to assess location, size and status of LED projects 250,000,000 across the regions 2.1.6. Developing and maintain database for LED project status, outputs and outcomes 30,000,000 Strategic Objective #3: To strengthen engagements with CSOs for enhanced synergies including integration of crosscutting issues (gender, HIV/AIDS, environment, and the vulnerable groups) in the promotion of LED. Output Total Cost 3.1.   Awareness of community on the importance of LED and their active 895,000,000 participation for sustainable LED. Interventions/Activities 3.1.1. Conduct a study to establish the current level of knowledge, attitudes and 100,000,000 practices for LED 3.1.2. Develop IEC material on LED both manually and electronically 50,000,000 3.1.3. Disseminate the IEC material to incorporate emerging issues 30,000,000 44 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 3.1.4. Organize LED promotional activities at the national and local levels 200,000,000 3.1.5. Develop and disseminate guidelines for operationalising LED forums/ 40,000,000 platforms 3.1.6. Re-activate and operationalize LED forums / platforms for social dialogue 175,000,000 at the local government levels 3.1.7. Conduct LED Forum/Platform meetings with the CSO and private sector 175,000,000 on the benefits of LED 3.1.8. Identify champions to promote knowledge on LED and mobilize local 25,000,000 resources to implement LED 3.1.9. Conduct consultations with women, youths and other socially marginalized 100,000,000 groups to ensure their inclusion in LED planning process and projects Strategic Objective #4: To promote collaborative partnerships with the private sector for local economic development Output Total Cost 4.1.   Commitment by the central and local government to Private Public 600,000,000 Partnerships or Private Sector investing in public goods. Interventions/Activities 4.1.1. Organize meetings for LG officials and economic actors to clarify the 200,000,000 role of the public and private sector in the economy 4.1.2. Develop and disseminate guidelines for Private Public Dialogue (PPD) 50,000,000 Platforms or forums in LGs 4.1.3. Facilitate the Establishment of PPD platforms or forums in the LGs 100,000,000 4.1.4. Conduct sensitization meetings for the private sector on the PPP policy 100,000,000 and guidelines 4.1.5. Coordinate and mobilise support for identified potential PPP projects in 100,000,000 LGs with the PPP Unit 4.1.6. Selecting, customizing and implementing appropriate public private 50,000,000 partnership modalities Objective 5. To create business enabling environment that facilitates business growth and increased investments. Output Total Cost 5.1.   Conducive regulatory framework for improving productivity and 1,475,000,000 competitiveness created Interventions/Activities 5.1.1. Review and reduce the time it takes to process applications; the cost to business; and reduce number of forms to be filled for: Business 175,000,000 registration; Licensing; Taxation; and Business regulation (health and safety inspection, workers protection etc.) 5.1.2. Enact bye-laws and ordinances that promote investment and growth 200,000,000 including buying local goods and services 5.1.3. Digitalize LG revenue collection 300,000,000 5.1.4. Establish one-stop-centers to provide business advisory services - 500,000,000 registration, taxation, financial services 5.1.5. Promoting work-based training and education for skills enhancement 100,000,000 5.1.6. Upgrading of locally-based business areas through improvement in 50,000,000 drainage, cleaning and garbage management 5.1.7. Establish business incubators by providing space for fledging businesses 100,000,000 to operate at subsidized rental rates 5.1.8. Support the establishment of business and industrial parks that are well serviced 50,000,000 Re-igniting Local Resources and Self Help 45 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Output Total Cost 5.2.   New Investments in Local Governments. 762,500,000 Interventions/Activities 5.2.1. Disseminate guidelines for conducting of Local Economic Business 300,000,000 Assessments 5.2.2. Support LGs to conduct the Local Economic Business Assessments 262,500,000 5.2.3. Support LGs to develop regional / district investment profiles and LED strategies 200,000,000 Strategic Objective #6: To improve policy coordination environment for LED promotion Output Total Cost 6.1.   Commitment by the national and local government to LED promotion is 880,000,000 increased Interventions/Activities 6.1.1. Develop policy briefs for high level policy makers 200,000,000 6.1.2. Conduct sensitization meetings with policy makers to appreciate LED and commit to its promotion for poverty eradication and job creation in 200,000,000 the localities 6.1.3. Incorporate LED into government planning and budgeting process at 30,000,000 MDA level 6.1.4. Develop annual operational workplans for national steering committee 150,000,000 and working groups for coordination and monitoring 6.1.5. Strengthen relevant existing coordination mechanism at the national and 300,000,000 regional levels to provide support the LGs Strategic Objective #7: To monitor and evaluate strategy implementation Output Total Cost 7.1.   LED strategy effectiveness and efficiency assessed 1,625,000,000 Interventions/Activities 7.1.1. Researching and documenting application of new technology and knowledge 1,000,000,000 7.1.2. Monthly reporting by the LGs and private sector implementing LED 175,000,000 7.1.3. Developing detailed national M&E strategy for LED 50,000,000 7.1.4. Conducting annual reviews of the LED strategy 100,000,000 7.1.5. Developing and continuously update LED database in a manner that 300,000,000 makes it accessible to stakeholders Strategic Objective #8: To harness existing digital platforms for LED promotion and enhancement of strategy implementation Output Total Cost 8.1.   Digital platforms utilised in LED promotion and Monitoring and Evaluation 100,000,000 Interventions/Activities 8.1.1. Assess existing digital platforms for relevance to LED Promotion 50,000,000 8.1.2. Review and re-design relevant platforms relevant for capturing and 30,000,000 sharing information 8.1.3. Encourage platform sharing among Telecommunication/ICT Operators 20,000,000 GRAND TOTAL 9,845,000,000 46 Re-igniting Local Resources and Self Help NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 Re-igniting Local Resources and Self Help 47 NATIONAL LOCAL ECONOMIC DEVELOPMENT STRATEGY 2021/22 - 2024/25 THE REPUBLIC OF UGANDA The Ministry of Local Government P O Box 7037, Kampala - Uganda Workers House, Pilkington Road Tel: +256-414-341224 48 Re-igniting Local Resources and Self Help