Third National Development Plan (NDPIII) 2020/21

1.1 — Introduction ................................................................................................................. 1

1.1 Introduction ................................................................................................................. 1 1.2 Achievements, Challenges and Lessons learnt from NDPI and NDPII ...................... 2

1.3 — How NDPIII is different from NDPI and NDPII ...................................................... 12

1.3 How NDPIII is different from NDPI and NDPII ...................................................... 12

1.4 — Approach and formulation process of the NDPIII .................................................... 14

1.4 Approach and formulation process of the NDPIII .................................................... 14

1.5 — Structure of the Plan .................................................................................................. 14

1.5 Structure of the Plan .................................................................................................. 14 CHAPTER 2: REGIONAL AND GLOBAL DEVELOPMENT CONTEXT......................... 15

2.1 — Introduction ............................................................................................................... 15

2.1 Introduction ............................................................................................................... 15

2.2 — Key Development Opportunities ............................................................................... 16

2.2 Key Development Opportunities ............................................................................... 16

2.3 — Threats ....................................................................................................................... 19

2.3 Threats ....................................................................................................................... 19

2.4 — Regional and International Development Obligations .............................................. 21

2.4 Regional and International Development Obligations .............................................. 21 CHAPTER 3: NATIONAL DEVELOPMENT OUTLOOK ................................................... 24

3.1 — Macroeconomic Strategy........................................................................................... 24

3.1 Macroeconomic Strategy........................................................................................... 24

3.2 — Economic Growth ..................................................................................................... 25

3.2 Economic Growth ..................................................................................................... 25

3.3 — Fiscal Strategy ........................................................................................................... 29

3.3 Fiscal Strategy ........................................................................................................... 29

3.4 — Monetary Sector ........................................................................................................ 32

3.4 Monetary Sector ........................................................................................................ 32

3.5 — Financial Sector Development .................................................................................. 34

3.5 Financial Sector Development .................................................................................. 34

3.6 — External Sector Developments .................................................................................. 34

3.6 External Sector Developments .................................................................................. 34

3.6.1 — Trade Developments .............................................................................................. 34

3.6.1 Trade Developments .............................................................................................. 34 PART II: STRATEGIC FOCUS, NATIONAL DEVELOPMENT PROGRAMMES AND FINANCING............................................................................................................................ 35 CHAPTER 4: STRATEGIC DIRECTION .............................................................................. 35

4.1 — Goal ........................................................................................................................... 35

4.1 Goal ........................................................................................................................... 35

4.2 — Strategic Objectives................................................................................................... 35

4.2 Strategic Objectives................................................................................................... 35

4.3 — Theory of change ....................................................................................................... 36

4.3 Theory of change ....................................................................................................... 36

4.4 — Key Development Results ......................................................................................... 36

4.4 Key Development Results ......................................................................................... 36

4.5 — Development Approach............................................................................................. 39

4.5 Development Approach............................................................................................. 39

4.6 — Development Strategies............................................................................................. 43

4.6 Development Strategies............................................................................................. 43

4.7 — NDPIII Approach to Realization of SDGs ................................................................ 51

4.7 NDPIII Approach to Realization of SDGs ................................................................ 51

4.8 — National Development Programmes ......................................................................... 51

4.8 National Development Programmes ......................................................................... 51

4.9 — NDPIII Core Projects ................................................................................................ 53

4.9 NDPIII Core Projects ................................................................................................ 53 ii NATIONAL PLANNING AUTHORITY PART III: DEVELOPMENT PROGRAMMES...................................................................... 61 CHAPTER 5: AGRO-INDUSTRIALIZATION ..................................................................... 61

5.1 — Introduction ............................................................................................................... 61

5.1 Introduction ............................................................................................................... 61

5.2 — Situation Analysis ..................................................................................................... 62

5.2 Situation Analysis ..................................................................................................... 62

5.3 — Programme Objectives .............................................................................................. 69

5.3 Programme Objectives .............................................................................................. 69 CHAPTER 6: MINERAL DEVELOPMENT ......................................................................... 78

6.1 — Introduction ............................................................................................................... 78

6.1 Introduction ............................................................................................................... 78

6.2 — Situation Analysis ..................................................................................................... 79

6.2 Situation Analysis ..................................................................................................... 79

6.3 — Programme Objectives .............................................................................................. 82

6.3 Programme Objectives .............................................................................................. 82 CHAPTER 7: SUSTAINABLE DEVELOPMENT OF PETROLEUM RESOURCES ......... 88

7.1 — Introduction ............................................................................................................... 88

7.1 Introduction ............................................................................................................... 88

7.2 — Situation analysis....................................................................................................... 89

7.2 Situation analysis....................................................................................................... 89

7.3 — Programme Objectives .............................................................................................. 90

7.3 Programme Objectives .............................................................................................. 90 CHAPTER 8: TOURISM DEVELOPMENT.......................................................................... 95

8.1 — Introduction ............................................................................................................... 95

8.1 Introduction ............................................................................................................... 95

8.2 — Situation Analysis ..................................................................................................... 96

8.2 Situation Analysis ..................................................................................................... 96

8.3 — Programme Objectives ............................................................................................ 101

8.3 Programme Objectives ............................................................................................ 101 CHAPTER 9: NATURAL RESOURCES, ENVIRONMENT, CLIMATE CHANGE, LAND AND WATER MANAGEMENT .......................................................................................... 105

9.1 — Introduction ............................................................................................................. 105

9.1 Introduction ............................................................................................................. 105

9.2 — Situation Analysis ................................................................................................... 106

9.2 Situation Analysis ................................................................................................... 106

9.3 — Programme Objectives ............................................................................................ 110

9.3 Programme Objectives ............................................................................................ 110 CHAPTER 10: PRIVATE SECTOR DEVELOPMENT ...................................................... 117

10.1 — Introduction ............................................................................................................. 117

10.1 Introduction ............................................................................................................. 117

10.2 — Situation Analysis ................................................................................................... 118

10.2 Situation Analysis ................................................................................................... 118

10.3 — Programme Objectives ............................................................................................ 120

10.3 Programme Objectives ............................................................................................ 120 CHAPTER 11: MANUFACTURING ................................................................................... 123

11.1 — Introduction ............................................................................................................. 123

11.1 Introduction ............................................................................................................. 123

11.2 — Situational analysis .................................................................................................. 124

11.2 Situational analysis .................................................................................................. 124

11.3 — Programme Objectives ............................................................................................ 127

11.3 Programme Objectives ............................................................................................ 127 CHAPTER 12: INTEGRATED TRANSPORT INFRASTRUCTURE AND SERVICES ... 131

12.1 — Introduction ............................................................................................................. 131

12.1 Introduction ............................................................................................................. 131

12.2 — Situation Analysis ................................................................................................... 132

12.2 Situation Analysis ................................................................................................... 132

12.3 — Programme Objectives ............................................................................................ 138

12.3 Programme Objectives ............................................................................................ 138 CHAPTER 13: SUSTAINABLE ENERGY DEVELOPMENT ........................................... 144

13.1 — Introduction ............................................................................................................. 144

13.1 Introduction ............................................................................................................. 144

13.2 — Situation Analysis ................................................................................................... 145

13.2 Situation Analysis ................................................................................................... 145 iii THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

13.3 — Programme Objectives ............................................................................................ 148

13.3 Programme Objectives ............................................................................................ 148 CHAPTER 14: DIGITAL TRANSFORMATION ................................................................ 152

14.1 — Introduction ............................................................................................................. 152

14.1 Introduction ............................................................................................................. 152

14.2 — Situation Analysis ................................................................................................... 152

14.2 Situation Analysis ................................................................................................... 152

14.3 — Programme Objectives ............................................................................................ 155

14.3 Programme Objectives ............................................................................................ 155 CHAPTER 15: SUSTAINABLE URBANIZATION AND HOUSING ............................... 159

15.1 — Introduction ............................................................................................................. 159

15.1 Introduction ............................................................................................................. 159

15.2 — Situation Analysis ................................................................................................... 160

15.2 Situation Analysis ................................................................................................... 160

15.3 — Programme Objectives ............................................................................................ 161

15.3 Programme Objectives ............................................................................................ 161 CHAPTER 16: HUMAN CAPITAL DEVELOPMENT ....................................................... 165

16.1 — Introduction ............................................................................................................. 165

16.1 Introduction ............................................................................................................. 165

16.2 — Situation Analysis ................................................................................................... 166

16.2 Situation Analysis ................................................................................................... 166

16.3 — Programme Objectives ............................................................................................ 172

16.3 Programme Objectives ............................................................................................ 172 CHAPTER 17: INNOVATION, TECHNOLOGY DEVELOPMENT AND TRANSFER .. 179

17.1 — Introduction ............................................................................................................. 179

17.1 Introduction ............................................................................................................. 179

17.2 — Situation Analysis ................................................................................................... 180

17.2 Situation Analysis ................................................................................................... 180

17.3 — Programme Objectives ............................................................................................ 181

17.3 Programme Objectives ............................................................................................ 181 CHAPTER 18: COMMUNITY MOBILIZATION AND MINDSET CHANGE ................. 185

18.1 — Introduction ............................................................................................................. 185

18.1 Introduction ............................................................................................................. 185

18.2 — Situation Analysis ................................................................................................... 186

18.2 Situation Analysis ................................................................................................... 186

18.3 — Programme Objectives ............................................................................................ 188

18.3 Programme Objectives ............................................................................................ 188 CHAPTER 19: GOVERNANCE AND SECURITY PROGRAMME.................................. 191

19.1 — Introduction ............................................................................................................. 191

19.1 Introduction ............................................................................................................. 191

19.2 — Situation Analysis ................................................................................................... 192

19.2 Situation Analysis ................................................................................................... 192

19.3 — Programme Objectives ............................................................................................ 195

19.3 Programme Objectives ............................................................................................ 195 CHAPTER 20: PUBLIC SECTOR TRANSFORMATION .................................................. 199

20.1 — Introduction ............................................................................................................. 199

20.1 Introduction ............................................................................................................. 199

20.2 — Situation Analysis ................................................................................................... 200

20.2 Situation Analysis ................................................................................................... 200

20.3 — Programme Objectives ............................................................................................ 203

20.3 Programme Objectives ............................................................................................ 203 CHAPTER 21: REGIONAL DEVELOPMENT ................................................................... 206

21.1 — Introduction ................................................................................................................ 206

21.1 Introduction ................................................................................................................ 206

21.2 — Situation Analysis ...................................................................................................... 207

21.2 Situation Analysis ...................................................................................................... 207

21.3 — Programme Objectives ............................................................................................... 209

21.3 Programme Objectives ............................................................................................... 209 CHAPTER 22: DEVELOPMENT PLAN IMPLEMENTATION ........................................ 212

22.1 — Introduction ............................................................................................................. 212

22.1 Introduction ............................................................................................................. 212

22.2 — Situation analysis..................................................................................................... 212

22.2 Situation analysis..................................................................................................... 212

22.3 — Programme Objectives ............................................................................................ 216

22.3 Programme Objectives ............................................................................................ 216 iv NATIONAL PLANNING AUTHORITY PART IV: COSTING, FINANCING, RISK MANAGEMENT, AND MONITORING AND EVALUATION...................................................................................................................... 222 CHAPTER 23: COSTING AND FINANCING OF NDPIII PROGRAMMES .................... 222

23.1 — The Overall Cost of the Plan ................................................................................... 222

23.1 The Overall Cost of the Plan ................................................................................... 222

23.2 — Public Financing Sources ........................................................................................ 222

23.2 Public Financing Sources ........................................................................................ 222

23.3 — Public Debt Acquisition .......................................................................................... 225

23.3 Public Debt Acquisition .......................................................................................... 225

23.4 — Private Financing Sources ....................................................................................... 226

23.4 Private Financing Sources ....................................................................................... 226 CHAPTER 24: RISK MANAGEMENT ............................................................................... 229

24.1 — Introduction ............................................................................................................. 229

24.1 Introduction ............................................................................................................. 229

24.2 — NDPIII Risk Profile ................................................................................................. 229

24.2 NDPIII Risk Profile ................................................................................................. 229

24.3 — General Interventions for Risk Management .......................................................... 239

24.3 General Interventions for Risk Management .......................................................... 239 CHAPTER 25: MONITORING AND EVALUATION ........................................................ 240

25.1 — Introduction ............................................................................................................. 240

25.1 Introduction ............................................................................................................. 240

25.2 — The NDPIII M&E Reforms ..................................................................................... 241

25.2 The NDPIII M&E Reforms ..................................................................................... 241

25.3 — M&E Events and Key Actors .................................................................................. 244

25.3 M&E Events and Key Actors .................................................................................. 244

25.4 — Performance Reporting and Dissemination of Results ........................................... 246

25.4 Performance Reporting and Dissemination of Results ........................................... 246

25.5 — M&E Processes ....................................................................................................... 247

25.5 M&E Processes ....................................................................................................... 247

25.6 — Capacity Building.................................................................................................... 248

25.6 Capacity Building.................................................................................................... 248

25.7 — NDPIII Results Framework ..................................................................................... 248

25.7 NDPIII Results Framework ..................................................................................... 248 CHAPTER 26: NATIONAL STATISTICAL SYSTEM ...................................................... 250 ANNEXES ............................................................................................................................. 253 Annex 1: Mapping of the global, continental and regional development frameworks. ..... 253 Annex 2: Matching bottlenecks to Africa’s socioeconomic development to NDPIII strategies and national programs ........................................................................................................ 255 Annex 3: Other NDPIII Programmes Projects ................................................................... 257 Annex 4: Prioritized Minerals for NDP III and their uses ................................................. 293 Annex 5a: NDPIII Costing by Programme ........................................................................ 297 Annex 5b: NDPIII Total Costs (Uganda Shillings, percent of GDP) ................................ 298 Annex 5c: NDPIII Total Costs by Function ....................................................................... 299 Annex 6: NDPIII Programme Level Results Framework .................................................. 301 v THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 LIST OF TABLES Table 3.1: Selected Economic and Financial Indicators, FY 2019/20 - 2024/25 .................... 24 Table 3. 2: Contribution to growth by sector, FY 2018/19 - 2024/25 ..................................... 26 Table 3.3: The Stock of New Jobs created 2021-24/25 ........................................................... 28 Table 3. 4: Sources of financing - Percentage of GDP ............................................................ 31 Table 3. 5: Monetary Accounts, FY 2018/19 - FY 2024/25 .................................................... 32 Table 4.1: NDPIII Key Strategic Results ................................................................................. 37 Table 5.1: Uganda’s top 10 agricultural products exports by shares of total exports (percent), 2018.......................................................................................................................................... 63 Table 5.2: Comparison of yields on farm versus research stations.......................................... 63 Table 5.3: Agro-industrialization Programme Interventions and Respective Actors .............. 70 Table 5.4: Qualifications and Skills Gaps for Agro Industrialisation Programme .................. 77 Table 6.1: Mineral Development Interventions and Respective Actors .................................. 83 Table 6.2: Qualifications and Skills Gaps for Mineral Development Programme .................. 87 Table 7.1: Petroleum Interventions and Respective Actors ..................................................... 91 Table 7.2: Qualifications and Skills Needs for: Sustainable Development of Petroleum Resources ................................................................................................................................. 94 Table 8.1: Tourists’ comparison to Uganda by Purpose of Visit in 2017/18 .......................... 97 Table 8.2: Tourism and Travel Competitiveness Index Ranking for EAC.............................. 97 Table 8.3: Tourism Interventions and the Respective Actors ................................................ 101 Table 8.4: Qualifications and Skills Gaps for Tourism Programme ...................................... 104 Table 9.1: Programme Interventions and Respective Actors ................................................. 110 Table 10. 1: Private Sector Development Interventions and Respective Actors ................... 120 Table 11.1: Manufacturing Interventions and Respective Actors ......................................... 128 Table 11.2: Qualifications and Skills Needs for Manufacturing Programme ........................ 129 Table 12.1: Key Programme Results ..................................................................................... 132 Table 12.2: Performance of UNRA ferry services (UNRA 2018/19) ................................... 134 Table 12.3: Summary of legislative gaps ............................................................................... 137 Table 12.4: Infrastructure Interventions and Respective Actors ........................................... 138 Table 12.6: Qualifications and Skills Needs for: Integrated Transport Infrastructure and Services Programme .............................................................................................................. 143 Table 13. 1: Energy Interventions and the Respective Actors ............................................... 148 Table 13. 2: Qualifications and Skills Needs for: Energy Development Programme ........... 151 Table 14. 1: Digital Transformation Interventions and Respective Actors ........................... 155 Table 14.2: Qualifications and Skills Needs for ICT and Digital Technology Programme .. 157 Table 15.1: Sustainable Urbanization and Housing Interventions and Respective Actors .... 162 Table 15.2: Qualifications and Skills Needs for: Sustainable Housing and Urban Development Programme ............................................................................................................................. 163 Table 16. 1: Human Capital Interventions and Respective Actors ........................................ 173 Table 16. 2: Qualifications and Skills Needs for Human Capital Development and Social Protection Programme ........................................................................................................... 178 Table 17. 1: STI Interventions and Respective Actors .......................................................... 182 vi NATIONAL PLANNING AUTHORITY Table 17.2: Qualifications and Skills Needs for: Innovation, Technology Development and Transfer Programme .............................................................................................................. 184 Table 18.1: Community Mobilization Interventions and Respective Actors ........................ 189 Table 19. 1: Governance and Security Interventions and Respective Actors ........................ 195 Table 19.2: Qualifications and Skills Needs for: Governance and Security Programme ...... 198 Table 20. 2: Public Sector Transformation Interventions and Respective Actors ................. 204 Table 21.1: Key results to be achieved by the Regional Development Programme.............. 206 Table 21. 2: Changes in poverty in targeted regions between 2012/13 and 2016/17 ............ 207 Table 21. 3: Selected enterprises by sub region ..................................................................... 210 Table 21.4: Regional Development Interventions and Respective Actors ............................ 210 Table 21.1: Key results to be achieved by the Regional Development Programme.............. 206 Table 21. 2: Changes in poverty in targeted regions between 2012/13 and 2016/17 ............ 207 Table 21. 3: Selected enterprises by sub region ..................................................................... 210 Table 21.4: Regional Development Interventions and Respective Actors ............................ 210 Table 22. 1: Development Plan Implementation Interventions and Respective Actors ........ 217 vii THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Figure 3.1: GDP per capita and real economic growth ............................................................ 27 Figure 3. 2:Overall fiscal deficit (percentage of GDP) ............................................................ 30 Figure 4. 1: NDPIII Theory of Change .................................................................................... 36 Figure 5.1: Uganda, Intra-African and Trade Partners’ Trade Shares, 1995–2017 ................. 68 Figure 17. 1: Pillars of the Global Innovations Index (WIPO, 2019) ................................... 181 Figure 22. 1: Programme Coordination Framework .............................................................. 220 Figure 25. 1: NDP Results framework ................................................................................... 249 viii NATIONAL PLANNING AUTHORITY LIST OF MAPS Map 4.1: Uganda's Growth Triangle........................................................................................ 41 Map 5.1: Mapping of selected agricultural processing and supporting infrastructure ............ 75 Map 5.2: Mapping of selected agricultural commodities to Agro-ecological Zones ............. 76 Map 6.1: Location of different minerals in Uganda ............................................................... 80 Map 6.2: NDPIII priority minerals ......................................................................................... 85 Map 6.3: Required Infrastructure to Mineral Areas................................................................. 86 Map 7.1: Mapping of selected supporting infrastructure for Petroleum Development ........... 93 Map 8.1: Tourism connectivity ................................................................................................ 99 Map 9.1: Spatial representation of current wetland degradation ........................................... 115 Map 9.2: Qualifications and Skills Needs for: Climate Change, Natural Resources, Environment, and Water Management Programme............................................................... 116 Map 12.1: NDPIII Roads Projects ......................................................................................... 141 Map 12.2: Core Transport Infrastructure Projects ................................................................. 142 Map 13.1: Existing Electricity transmission network ............................................................ 147 Map 13.2: Spatial Representation of Core Energy Projects .................................................. 150 Map 21.1: Sub-Regional Poverty Status ................................................................................ 208 Map 22.1: Development Plan Implementation Cycle ............................................................ 213 ix THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 LIST OF ACRONYMS Abbreviation Description ACD Anti-Corruption Division AfCFTA African Continental Free Trade Area AfDB African Development Bank AFROSAL African Organization of Supreme Audit Institutions AGI Agro-Industrialization ASSIP Accountability Sector Strategic Investment Plan BCCU Bugisu Coffee Cooperative Union BTVET Business, Technical and Vocational Training BOU Bank of Uganda CDOs Community Development Officers CMA Capital Markets Authority CME Community Mobilization and Empowerment CNDPF Comprehensive National Development Planning Framework COMESA Common Market for East and Southern Africa CNOOC China National Offshore Oil Corporation CSOs Civil Society Organisations CTC Cut, Tear and Curl DDA Dairy Development Authority DDEG Discretionary Development Equalisation Grant DEI Directorate of Ethics and Integrity DFS Digital Financial Services DIT Directorate f Industrial Training DLG District Local Government DPP Directorate of Public Prosecution DPs Development Partners DRMS Domestic Revenue Mobilisation Strategy EAC East African Community EBA Everything But Arms ECCE Early Childhood Care and Education ECD Early Childhood Development EIA Environmental Impact Assessment EITI Extractive Industries Transparency Initiative EPRC Economic Policy Research Centre ERA Electricity Regulatory Authority FBOs Faith Based Organizations FDC Forum for Democratic Change FDI Foreign Direct Investment FID Final Investment Decision FGM Female Genital Mutilation FSDS Financial Sector Development Services GAPR Government Annual Performance Report GCIC Government Citizen Interaction Centre x NATIONAL PLANNING AUTHORITY GDP Gross Domestic Product GER Gross Enrollment Ratio GKMA Greater Kampala Metropolitan Area HCs Health Centres HCI Human Capital Index HDI Human Development Index HESFEB Higher Education Students Financing Board HIPC Highly Indebted Poor Countries HRBA Human Rights Based Approach HTTI Hotel and Tourism Training Institute IBP Integrated Bank of Projects ICBT Informal Cross Border Trade ICT Information and Communication Technology IFMIS Integrated Finance Management Information System IG Inspectorate of Government ITNS Insecticides Treated Nets IPP Integrated Personal and Payroll System IRA Insurance Regulatory Authority ISO International Standards Organization JLOS Justice, Law and Order Sector KCCA Kampala Capital City Authority KIBP Kampala Industrial and Business Park KIIDP Kampala Integrated Infrastructure Development Project LED Local Economic Development LGs Local Governments MAAIF Ministry of Agriculture Animal Industry and Fisheries MATIP Market and Agricultural Trade Improvement Project MDAs Ministries Departments and Agencies MEMD Ministry of Energy and Mineral Development MTEF Medium Term Expenditure Framework MoTIC Ministry of Trade Industry and Cooperatives MICE Meetings, Incentives, Conferences and Events MIS Management Information System MEACA Ministry of East African Community Affairs MODVA Ministry of Defense and Veteran Affairs MoES Ministry of Education and Sports MoFA Ministry of Foreign Affairs MoFPED Ministry of Finance Planning and Economic Development MOH Ministry of Health MoGLSD Ministry of Gender, Labour and Social Development MoIA Ministry of Internal Affairs Ministry of Information and Communication Technology and National MoICT&NG Guidance MoJCA Ministry of Justice and Constitutional Affairs MoLG Ministry of Local Government xi THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 MoLHUD Ministry of Lands, Housing and Urban Development MoPS Ministry of Public Service MoSTI Ministry of Science Technology and Innovation MoTWA Ministry of Tourism, Wildlife and Antiquities MoWE Ministry of Water and Environment MoWT Ministry of Works and Transport MPs Members of Parliament MSMEs Micro Small and Medium Enterprises MTR Mid-Term Review NAADS National Agricultural Advisory Services NAGRC&DB National Animal Genetic Resource Centre and Data Bank NARO National Agricultural Research Organization NDCs Nationally Determined Contributions NER Net Enrollment Ratio NFA National Forestry Authority NFLC National Farmer Leadership Centre NRI Networked Readiness Index NCHE National Council of Higher Education NPA National Planning Authority NARO National Agricultural Research Organization NCDC National Curriculum Development Centre NCDs Non-Communicable Diseases NDP National Development Plan NDPI First National Development Plan NDPII Second National Development Plan NDPIII Third National Development Plan NEMA National Environment Management Authority NFA National Forestry Authority NGOs Non-Governmental Organizations NIMES National Integrated Monitoring and Evaluation Strategy NITA National Information Technology Authority NMT Non-Motorized Transport NRM National Resistance Movement NSS National Statistics System NSSF National Social Security Fund NTMs Non-Tariff Measures OAG Office of the Auditor General OP Office of the President OPM Office of the Prime Minister OPMIS Office of the Prime Minister Management Information System OVCs Orphans and other Vulnerable Children OWC Operation Wealth Creation PAP Project Affected Persons xii NATIONAL PLANNING AUTHORITY PAU Petroleum Authority of Uganda PBS Programme Based Budgeting System PEFA Public Expenditure and Financial Accountability PFM Public Finance Management PFMA Public Finance Management Act PIBID Presidential Initiative for Banana Industrial Development PIP Public Investment Plan PIMS Public Investment Management Strategy PPDA Public Procurement and Disposal of Public Assets PPP Public Private Partnership PRDP Peace Reconstruction and Development Programme PSFU Private Sector Foundation Uganda PSRs Public Sector Reforms PWDs Persons with Disabilities QHSSE Quality Health Safety Security and Environment QMS Quality Management Systems REA Rural Electrification Agency REE Rare Earth Elements R&D Research and Development ROM Results Oriented Management ROW Right of Way SACCOs Saving ad Credit Cooperative Organizations SAGE Social Assistance Grant for Empowerment SDGs Sustainable Development Goals SDPs Sector Development Plans SGR Standard Gauge Railway STEM Science, Technology, Engineering and Mathematics STI Science Technology and Innovation STEI Science Technology, Engineering and Innovation SMEs Small and Medium Enterprises SOEs State Owned Enterprises TRWR Total Renewable Water Resources TSA Tourism Satellite Account TSA Treasury Single Account TVET Technical and Vocational Education and Training UAC Uganda AIDS Commission UBC Uganda Broadcasting Cooperation UCAA Uganda Civil Aviation Authority UBOS Uganda Bureau of Statistics UCC Uganda Communications Commission UCDA Uganda Coffee Development Authority UCE Uganda Commodity Exchange UDB Uganda Development Bank UDC Uganda Development Cooperation xiii THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 UEDCL Uganda Electricity Distribution Company Limited UEGCL Uganda Electricity Generation Company Limited UETCL Uganda Electricity Transport Company Limited UEPB Uganda Export Promotions Board UFZA Uganda Free Zones Area UHI Uganda Heart Institute UHRC Uganda Human Rights Commission UICT Uganda Institute of Information and Communications Technology UIRI Uganda Industrial Research Institute ULC Uganda Land Commission UMA Uganda Manufactures Association UNBS Uganda Bureau of Standards UNCST Uganda National Council of Science and Technology UNDESA United Nations Department of Economics and Social Affairs UNECA United Nations Economic Commission for Africa UNHCC Uganda National Housing and Construction Corporation UNMA Uganda National Metrological Authority UNOC Uganda National Oil Company UPC Uganda People’s Congress UPE Universal Primary Education UPF Uganda Police Force UNHS Uganda National Household Survey UNRA Uganda Road Authority URA Uganda Revenue Authority URBRA Uganda Retirement Benefits Regulatory Authority URC Uganda Railway Cooperation URF Uganda Road Fund USE Uganda Securities Exchange USSIA Uganda Small Scale Industries Association USMID Uganda Support to Municipal Infrastructure Development UTL Uganda Telecom UIA Uganda Investment Authority UIRI Uganda Industrial Research Institute UMFSC Uganda Microfinance Support Centre UNBS Uganda National Bureau of Standards URA Uganda Revenue Authority URSB Uganda Registration Service Bureau UTB Uganda Tourism Board UWA Uganda Wildlife Authority UWEC Uganda Wildlife Education Centre UWEP Uganda Women Empowerment Programme UWRSA Uganda Warehouse Receipt Systems Authority UWRTI Uganda Wildlife Research and Training Institute UVRI Uganda Virus Research Institute VHTs Village Health Teams xiv NATIONAL PLANNING AUTHORITY WASH Water Sanitation and Hygiene WHO World Health Organization WIPO World Intellectual Property Organization YLP Youth Livelihood Programme ZARDIs Zonal Agricultural Research and Development Institutes xv NATIONAL PLANNING AUTHORITY EXECUTIVE SUMMARY This National Development Plan (NDPIII) is the third in a series of six NDPs that will guide the nation in delivering the aspirations articulated in Uganda Vision 2040. The NDPIII (2020/21 – 2024/25) is anchored on the progress made, challenges encountered and lessons learnt from previous planning and implementation of NDPI and NDPII. The NDPIII comes into effect at the time when the country and the World are battling the COVID-19 pandemic that has posed social and economic impacts. In light of this, the Plan defines the broad direction for the country and sets key objectives, interventions and targets for sustainable socio- economic transformation of Uganda. Achievements, Challenges and Lessons learned The key achievements that have been registered over the last decade include: (i) Sustainable peace, security and macro-economic stability continued to prevail providing the basic anchor for economic growth and development; (ii) The size of the economy has doubled from UGX64 trillion in FY 2010/11 to UGX128 trillion in FY2018/19 in nominal terms; (iii) GDP per capita has grown from USD 844 in FY2011/12 to USD 878 in FY 2018/19, despite the growth in population; (iv) Domestic revenue collection increased from UGX 5.02 Trillion in FY2010/11 to UGX 16.359 trillion in FY2018/19 in nominal terms; (v) Total exports of goods and services in nominal terms grew from USD 3.83 billion in FY2010/11 to USD 5.3 billion in FY2017/18; (vi) Remittances increased from USD 819 million in FY2010/11 to over USD 1 billion in FY2017/18 in nominal terms; (vii) The total paved roads network as a percentage of total national roads more than doubled from 8 percent in 1986 to 21.1 percent (or 4,551 km) as of May 2018; (viii) Electricity generation capacity increased from 601MW in 2010 to 1839MW in 2020; (ix) Access to and utilization of education services significantly increased, including increased enrolment for UPE as well as Business, Technical and Vocational Training (BTVET); (x) Access to and utilization of health services also significantly increased. However, there are a number of outstanding challenges, including: (i) A large proportion of households still in the subsistence economy; (ii) Insufficient creation of quality and gainful jobs in the economy, especially for the youth with an estimated unemployment rate of 13.3 percent. About 78 percent of the population is aged 30 years and below; (iii) Whereas cost of electricity has reduced, it remains higher than the targeted 5 cents per unit; (iv) Widening income inequality, particularly between the regions; (v) Limited access to and high cost of capital; (vi) Weaknesses in systems and gaps in law that do not foster efficiency in public service; (vii) Prevalence of corruption; xix THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 (viii) Severe reduction in the forest cover as well as wetland degradation and encroachment leading to increased vulnerability to climate change; (ix) Low levels of revenue to GDP to finance infrastructure and social services; (x) Dwindling district level revenues insufficient to fund local service delivery; (xi) Uncoordinated approaches to implementation planning; (xii) Poor programme and project implementation often leading to interest rate payments incurred on borrowed funds before programme and project execution; (xiii) The Quality of education remains low characterized by low levels of literacy and numeracy, coupled with a high rate of school dropout; and, (xiv) Inadequate functionality of health facilities and rising cases of non-communicable diseases. Based on the review of the country’s performance during the past ten years of implementing the NDPs, a number of lessons have been learnt including: (i) Increasing investment in the ‘real economy’ to optimize use of the increased infrastructure capacity. This economy includes productive sectors in: Agriculture, Industry, ICT, Services, Shelter, Clothing, Health, Education and Security) able to increase livelihoods, generate employment and produce goods for export substitution and import substitution; (ii) Revisiting the development approach, in particular the role of government in the development process. The market alone is unlikely to optimally drive Uganda’s development process. A quasi market approach is required; (iii) Re-focusing efforts on the production of appropriately skilled labour for the economy; (iv) Improving the functionality and range of services provided by sub-counties and parishes in order to effectively address development needs at the local level; (v) Increasing the effective utilization of alternative sources of development financing, like; the private sector, the pension fund, development partners and CSOs; (vi) Breaking down the silo approach to planning, budgeting and implementation through the introduction of a programme approach that brings together all stakeholders necessary to address a particular development issue; (vii) Addressing the issue of land compensations for development projects; (viii) Strengthening the role of government in increasing access to market opportunities in global and regional markets; (ix) Strengthening Public Investment Management in order to increase the return on public investment; and, (x) The need to plan for and harness the potentials of the young people who are the majority of the population. Regional and Global Development Context The Plan has also been designed with the regional and global development outlook. The key regional and global agenda informing the plan include; Africa Agenda 2063, Agenda 2030, EAC 2050 and other development frameworks. For example, the Africa Continental Free Trade Area (AfCFTA) which is likely to spur increased interest for foreign direct investment and open new markets for Ugandan products. xx NATIONAL PLANNING AUTHORITY The plan is cognisant of the challenges and threats posed by the regional and global trends including: Climate change, regional conflicts leading to large scale population movements and loss of markets, cyber security, terrorism, epidemics, and brain drain stymying innovation, research and entrepreneurship capacity. National Development Outlook Over the Plan period, an economic growth rate average of close to 7 percent is expected. This is expected to yield an annual average of 520,000 jobs. The GDP per capita is expected to reach USD 1,198 therefore putting the country into middle income status. The economic growth and jobs strategy in this Plan focusses on: expanding the industrial base of the economy; consolidating and increasing the stock and quality of productive infrastructure; enhancing productivity especially in the agricultural sector; sustainable exploitation of natural resources; and supporting private sector development through providing affordable financing. Particular focus for jobs will be on: promoting Foreign Direct Investment (FDI) and expanding exports with a focus on supporting small and medium enterprises (SMEs) to access export markets while supporting small domestic firms to grow to small and then large firms; developing an economy that attracts and nurtures larger domestic firms, attract more foreign direct investment to Uganda, encourage trade integration, leverage urbanization for better jobs, prioritizing regional investment, strengthen local economic development, accelerate the transformation of agriculture from subsistence to commercial production in particular by connecting smallholders with value-chains. Developments in the external sector are expected to contribute positively to growth on account of increase in exports largely driven by agro-processing and increased domestic production. Core inflation is targeted within 5 percent and a prudent fiscal policy that includes a ceiling on debt to GDP of 50 percent in present value terms is expected. The overall development strategy of the plan is hinged on the need for rapid industrialization based on increased productivity and production in agriculture, while nurturing the potential of the ICT, minerals, oil and gas sectors. Strategic Direction The goal of this Plan is “Increased Household Incomes and Improved Quality of Life of Ugandans”. The goal will be pursued under the overall theme of Sustainable Industrialization for inclusive growth, employment and sustainable wealth creation. The key objectives of the Plan are: 1. Enhance value addition in key growth opportunities; 2. Strengthen the private sector to create jobs; 3. Consolidate and increase the stock and quality of productive infrastructure; 4. Enhance the productivity and social wellbeing of the population; and, 5. Strengthen the role of the state in guiding and facilitating development. xxi THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 For successful implementation of the NDPIII, the following key development strategies will be pursued: i) Agro-Industrialization; ii) Fast-Track Oil, Gas and Mineral-Based Industrialization; iii) Import Substitution/Promotion of Local Manufacturing; iv) Export Promotion; v) Harness the Tourism Potential; vi) Provide a suitable fiscal, monetary and regulatory environment for the private sector to invest; vii) Increase local content participation; viii) Institutionalize infrastructure maintenance; ix) Develop intermodal transport infrastructure to enhance interoperability; x) Increase access to stable, reliable and affordable energy; xi) Leverage urbanization as a driver for socio-economic transformation; xii) Improve access and quality of social services; xiii) Institutionalize human resource planning for the economy; xiv) Enhance skills and vocational Development; xv) Promote Science, Technology, Engineering and Innovation as well as ICT; xvi) Increase access to social protection; xvii) Promote development-oriented mind-set; xviii) Increase government participation in strategic sectors; xix) Increase Resource Mobilization for Implementation of National Development Programmes; xx) Re-engineer the Public service to promote investment; and xxi) Enhance partnerships with non-state actors for effective service delivery. Expected results At the end of the five-year period, the following key results are expected to be achieved: Reduced Poverty rates; from 21.4 percent to 18.5 percent; Reduced Income Inequality (Gini coefficient); from 0.41 to 0.37; Increased contribution of industry to GDP; from 18.6 percent to 28.6 percent; Increased rate of growth of the industrial sector from 6.1 percent to 8.1 percent; Increased rate of growth of the agricultural sector from 3.8 percent to 7 percent; Reduced Youth unemployment due to annual increase in jobs created at 512,000 annually; from 13.3 percent to 9.7 percent; Increased value of manufactured exports in total exports; from 12.3 percent to 19.8 percent; Increased ratio of merchandise Exports to GDP from 12.7 percent to 16.5 percent; Increased share of intermediate goods (inputs for manufacturing) in total import bill from 18.6 percent to 25.5 percent; Reduction in the percentage of household dependent on subsistence agriculture as a main source of livelihood from 68.9 percent to 55 percent; Increased electricity consumption per capita from 100kwh to 578kwh; Increased forest cover from 9.5 percent to 15 percent; Reduction in the cost of electricity to USD 5 cents for all processing and manufacturing enterprises; Increased households with access to electricity from 21 percent to 60 percent; Increased area covered by broad band services from 41 percent to 90 percent. NDPIII Programmes The Plan has identified eighteen (18) programmes that have been designed to deliver the required results and address the 13 bottlenecks adopted by the African Union. These programmes incorporate the country’s commitments to regional and international development frameworks and cross cutting issues. The corresponding human resource requirements for each programme have also been outlined. Agro-industrialisation Programme: aims to increase commercialisation and competitiveness of agricultural production and agroprocessing. Key expected results include: increasing export value of selected agricultural commodities, increasing the agricultural sector growth rate, xxii NATIONAL PLANNING AUTHORITY increasing labour productivity in the agro-industrial value chain, creating jobs in agro-industry, and increasing the proportion of households that are food secure. Mineral Development Programme: aims to increase mineral exploitation and value addition in selected resources for quality and gainful jobs in industrialisation. Key expected results include: reducing the volume and value of imported iron and steel and inorganic fertilisers; increasing the volume and value of refined gold exports and copper; increasing investment in the exploration and processing of selected minerals; and creating more jobs in the mining sub- sector. Sustainable Development of Petroleum Resources Programme: aims to attain equitable value from the petroleum resources and spur economic development in a timely and sustainable manner. Key expected results include: reducing the volume and value of imported petroleum and petroleum products, increasing revenue from oil and gas sub-sector and its contribution to GDP as well as creating more employment opportunities for Ugandans along the petroleum value chain. Tourism Development Programme: aims to increase Uganda’s attractiveness as a preferred tourist destination. Key expected results include; sustainably increasing tourism arrivals and revenues as well as employment in the tourism sector. Natural Resources, Environment, Climate Change, Land and Water Management Programme: aims to stop, reduce and reverse environmental degradation and the adverse effects of climate change as well as improve utilisation of natural resources for sustainable economic growth and livelihood security.Key expected results include: improved land use and management; increasing land area covered under forests and wetlands, increasing compliance of water permit holders with permit conditions and enhancing the accuracy of meteorological information. Private Sector Development Programme: aims to increase competitiveness of the private sector to drive sustainable inclusive growth. Key expected results include: reduction of the informal sector, increase in non-commercial lending to the private sector in key growth sectors, increased value of public contracts and sub-contracts that are awarded to local firms, and increased volume of private sector investment in key growth areas. Manufacturing Programme: aims to increase the product range and scale for import substitution and improved terms of trade. Key expected results include: increased share of manufactured exports in total exports, growth in the industrial sector contribution to GDP, and increased share of labour force employed in the industrial sector. Integrated Transport Infrastructure and Services Programme: aims to have a seamless, safe, inclusive and sustainable multi-modal transport system. Key expected results include: reducing the average travel time; reducing freight transportation costs; increasing the stock of transport infrastructure; increasing average infrastructure life span and reducing fatality and causalities from transport accidents. xxiii THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Energy Development Programme: aims to increase access to and consumption of clean energy. Key expected results include: increase in primary energy consumption; increase in the proportion of population accessing electricity; reduction in the share of biomass energy used for cooking; increase in transmission capacity; and enhanced grid reliability. Digital Transformation Programme: aims to increase ICT penetration and use of ICT services for social and economic development. Key expected results include: increasing ICT penetration; reducing cost of ICT devices and services; creating more direct jobs in the sector; increasing ICT incubation; and increasing government services online. Sustainable Urbanisation and Housing Programme: aims to attain inclusive, productive and liveable urban areas for socio-economic transformation. Key expected results include: decreasing urban unemployment; reducing the housing deficit; enhanced economic infrastructure in urban areas; increasing efficiency in solid waste collection; and more coverage of urban green spaces. Human Capital Development Programme: aims to increase productivity of the population for increased competitiveness and better quality of life for all. Key expected results include: increased proportion of labour force transiting to gainful employment; increased years of schooling; improved child and maternal outcomes; increased life expectancy; increased access to safe and clean water and sanitation; and increased access by population to social protection. Innovation, Technology Development and Transfer Programme: aims to increase the application of appropriate technology in the production and service delivery processes through the development of a well-coordinated STI eco-system. Key expected results include: Increase the Global Innovation Index; Gross Expenditure on R&D and business enterprise sector spending on R&D and Increase the number of Intellectual Property Rights registered. Community Mobilisation and Mindset Programme: aims to empower families, communities and citizens to embrace national values and actively participate in sustainable development. Key expected results include: increased participation of families, communities and citizens in development initiatives; enhanced media coverage of national programmes; increased household savings; increased social cohesion and civic competence; and better uptake and/or utilisation of public services (education, health, child protection etc.) at the community and district level. Governance and Security Programme: aims to improve adherence to the rule of law and capacity to contain prevailing and emerging security threats. Key expected results include: improvement in the corruption perception and democratic indices; increased case disposal rate; and increased percentage of districts with one stop frontline JLOS service points. Public Sector Transformation Programme: aims to improve public sector response to the needs of the citizens and the private sector. Key expected results include: improvements in the indices of; government effectiveness, public service productivity, global competitiveness and corruption perception indices. In addition, there will be increased proportion of the population satisfied with public services. xxiv NATIONAL PLANNING AUTHORITY Regional Development Programme: aims to accelerate equitable regional economic growth and development. Key expected results include reducing poverty in lagging sub-regions of: Karamoja, Bukedi, Bugisu, Busoga, West Nile, Acholi, Teso and Bunyoro. Development Plan Implementation Programme: aims to increase the efficiency and effectiveness in the implementation of the Plan. Key expected results include: Increase level of Plan implementation, increased GDP growth rate, increased revenue, and improvements in alignment of plans and budgets. Costing and Financing of the Plan The over all cost of financing all the NDPIII planned programme interventions over the 5-year period is estimated at around UGX411.681trillion (average 40.9 percent of GDP, annually) of which UGX276.878 trillion (average 27.5 percent of GDP, annually) is contribution by the Public(incl.off budget) while UGX134.803 trillion is private sector contribution (less recurrent private sector expenditure). This means that 67.3 percent of the total resources expected to finance the Plan will be from GoU consolidated budget while 32.7 percent will be from the private sector. Nevertheless, private contribution is significantly high if recurrent costs are included. Implementation, Risk Management, Monitoring and Evaluation Implementation reforms have been identified for each programme to ensure the delivery of the desired results. The programme implementation architecture provides a coordinated framework to focus on delivery of common results and reduce ‘silo’ working modality and enhance synergies. This will require strengthening the coordinating role of the Office of the Prime Minister. In order to ensure operationalization of the Plan, the Sector, Ministry, Department, Agency and Local Government plans will be aligned to the NDPIII. Implementation of these plans will also be linked to the Programme Based Budgeting System (PBBS). In addition, development partners will align their frameworks to meet the aspirations of the Plan. The Plan acknowledges the need for risk informed development as a process and not an event. This is because there is a continuous interaction across local, regional and global risks including; terrorism, epidemics, cybercrime, natural hazards and disasters, climate change, organized economic crimes and sabotage, among others. The plan has therefore identified, analysed various potential (endogenous and exogenous) risks and prescribed possible mitigation, continuous monitoring and management measures during the plan period. Monitoring and evaluation of the plan will be strengthened through the introduction of systemic and institutional reforms for improved effectiveness during NDPIII. Some of these include: rolling out and operationalizing an integrated Web-based NDP performance monitoring system that interfaces with the Programme Budgeting System and IFMIS; as well as operationalization of a High-Level Public Policy Management Executive Forum (Apex Platform) to strengthen effective public policy management and promotion of good governance practices. xxv THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 PART I: BACKGROUND AND DEVELOPMENT CONTEXT CHAPTER 1: BACKGROUND

1.1 — Introduction

1.1 Introduction 1. The Uganda Vision 2040 aims to transform the Ugandan society from a peasant to a modern and prosperous society. This National Development Plan (NDP) is the third in a series of six NDPs that will guide the nation and deliver the aspirations of the people of Uganda, as articulated in Uganda Vision 2040. NDPIII (2020/21 – 2024/25) aims to build on the progress made, learn lessons from the planning and implementation experiences of NDPI and NDPII, and also seek to surmount some of the challenges encountered. At the end of its implementation, the country will be halfway through Vision 2040 30-year’s timeframe. Consequently, this Plan has been drafted with this context in mind. 2. The goal of the Plan is to increase household incomes and improve the quality of life of Ugandans. This is expected to be achieved through resource-led industrialization. Successful resource-led sustainable industrialization will enable value addition in key growth opportunities (agriculture, ICT and minerals), trigger structural change and eventual movement of labour from low-paid agriculture to relatively better paid industrial employment. This transition should stimulate increased incomes and demand for agricultural output, quality education and health services and hence improvement in the quality of life of Ugandans. 3. The focus on industrialization is meant to consolidate the achievements so far registered and drive take-off. It provides unmatched potential for sustained accelerated growth by adding value to abundant resources in Agriculture, Minerals, Oil/Gas, ICT and youthful labour force. This will further strengthen the national forward and backward linkages to stimulate production and productivity growth hence promoting gainful employment and wealth creation. 4. In particular, agro-industrialization will be pursued to transform the subsistence agriculture sector to a commercial and competitive sector. This is required to increase household incomes of the majority (over 70 percent) of Ugandans directly and indirectly dependent on agriculture. This will be achieved by increasing export value of selected agricultural commodities, increasing the agricultural sector growth rate, increasing labour productivity in the agro-industrial value chain, creating jobs in agro-industry, and increasing the proportion of households that are food secure. 5. The NDPIII industrialization strategy will pursue a two-pronged approach to expand markets for increased demand of locally produced goods. First, Government will pursue an export-oriented strategy by increasing the value and share of manufactured goods in total exports in order to address the balance of payment deficit. Second, government will promote an expansion and diversification of local manufacturing activity, through both strategic public and private sector investment in industry. This will also ensure that some of the currently imported goods are produced locally. 1 NATIONAL PLANNING AUTHORITY 6. To ensure that the resource-led sustainable industrialization process is both sustainable and beneficial to its citizens, government will work closely with the private sector in two critical areas. These include, Private Sector Development and Human Capital Development that will be at the centre of the country’s efforts to build an educated, skilful, and productive labour force to drive the industrialization process. Further, strategic investment will be undertaken in critical national infrastructure projects to lower production costs, enhance international competitiveness and facilitate the sustainable exploitation of development opportunities.

1.2 — Achievements, Challenges and Lessons learnt from NDPI and NDPII

1.2 Achievements, Challenges and Lessons learnt from NDPI and NDPII 7. NDPIII aims to build on the progress made, learn lessons from the planning and implementation experiences of NDPI and NDPII, and also seek to surmount some of the challenges encountered. Towards this, the final evaluation of NDPI, the mid-term review of NDPII, as well as a synthesis of other diagnostic studies provide useful insights that inform the NDPIII, as detailed below.

1.2.1 — Summary of key achievements

1.2.1 Summary of key achievements 8. Over the last decade, the country has registered some significant economy-wide achievements that have begun to lay the foundation for pursuing the industrialization and diversification agenda. Some of these key achievements are highlighted below. (i) Sustainable peace, security and macro-economic stability continued to prevail. Sustained peace, security, and a stable macro-economic environment have provided the basic anchor for economic growth and development. During the period 2010 – 2019, Uganda has continued to enjoy peace and security in all regions of the country. Notably, the north and Karamoja regions have experienced sustained economic growth due to the restoration of peace and security. As a result, these two regions have registered a significant reduction in poverty levels over the ten-year period. Further, the economy has been characterized by a stable macroeconomic environment underpinned by low and stable inflation averaging 5 percent. (ii) The economy expanded more than 2 times from UGX64 trillion in FY 2010/11 to UGX128 trillion in FY2018/19 in nominal terms. Over the NDPI and NDPII period, the economy has remained relatively resilient in spite of a challenging global economic environment, geopolitical challenges and the deepening impacts of climate change. The rebound in real GDP growth in FY2017/18 to 6.2 percent (after a sluggish growth of 3.6 percent in FY 2012/13) is evidence of a relatively robust economy. At present, the economy is projected to grow above 6.0 percent. The relatively strong performance of the economy over the last ten years is a result of the aforementioned continued peace that the country has enjoyed, a stable domestic macro-economic environment and continued robust investment in the country’s infrastructure, particularly in roads and energy. (iii) GDP per capita has grown from USD 844 in FY2011/12 to USD 878 in FY 2018/19. The size of the economy has consistently grown in excess of the population 2 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 growth rate. This has resulted in an increase of the GDP per capita, in spite of the population growing from 34.9 million in 2015 to 40.3 million as of June, 2019. However, the increase in the GDP per capita, remains below the NDPII target. (iv) Domestic revenue collection increased from UGX5.02 Trillion in FY2010/11 to UGX16.359 trillion in FY2018/19 in nominal terms. The size of the domestic revenue is critical in determining the country’s ability to finance its development without relying excessively on development assistance. Domestic Revenue collection by the Ugandan Revenue Authority (URA) between the period FY2010/11 to FY2016/17 has seen a steady increase. Gross revenue collections by URA grew from UGX5.02 trillion in FY2010/11 to UGX14.5 trillion in FY2017/18. However, at 12.9 percent of Uganda’s GDP, the tax revenue collected remains too low to support Uganda’s developmental requirements. The informal nature of much of the country’s economy, tax avoidance and weak capacity in revenue collection deny Uganda of up to 40 percent of total revenue that may be collected. Reforms to reduce tax avoidance, expand the tax base by tapping into semi-formal economic activities, and improve the efficiency of URA, remain tasks for the country and will be a major focus of NDPIII. (v) Total exports of goods and services grew from USD 4.9 billion in FY2013/14 to USD 5.4 billion in FY2017/18, nominal terms. Growing the value of Uganda’s exports is key to the country’s efforts to maintain its debt sustainability and earn enough foreign capital to pay for the importation of required goods and services, particularly intermediate goods which will be critical for the early stages of the country’s industrialization. Over the course of NDP I and NDP II period, Uganda’s exports grew in value from USD 4.9 billion in FY2013/14 to USD 5.4 billion in FY2017/18. Tourism, in particular, remains one of the best performing sectors under service exports. Visitor arrivals increased from 945,899 in 2010 to 1,505,669 in 2018, which earned the country foreign exchange revenue amounting to USD 1.6 billion. The improved security situation in the country undoubtedly contributed to this healthy growth. The volume and value of commodity exports, however, remain comparatively low and stagnant. This growth is expected to be even stronger when the Africa Continental Free Trade Area (AfCFTA) is fully operationalized. In addition, the continuation of a policy of clustering through fully serviced and spatially concentrated industrial parks should be encouraged to deepen and broaden the knowledge base of companies, attract foreign investment and increase local employment while at the same time contributing to a diversification of the economy and the increased production of locally made products for the local market. (vi) Remittances increased from USD 819 million in FY2010/11 to over USD 1.4 billion in FY2017/18 in nominal terms. Remittances from Ugandans abroad increased significantly from USD 819 million in FY2010/11 to USD 1.4 billion in FY17/18. The increased inflow of foreign exchange through remittances impacted positively on the economy through boosting aggregate demand and economic growth as well as the national savings pool available for investment. Consequently, 3 NATIONAL PLANNING AUTHORITY gross domestic savings as a percentage of GDP have grown from 14.5 percent in FY 10/11 to 16.5 in FY17/18, while investment has grown from 21.1 percent to 28.5 percent of GDP over the same period. (vii) The total paved roads network as a percentage of total national roads increased from 8 percent in 1986, to 15.8 percent (3,317km) in 2011/12 and to 21.1 percent (or 4,551 km) as of May 2018. It is now possible to drive on a paved road from Arua to Kabale (an equivalent of 899 Kms) or from Busia to Arua in a single day. Further, the dual road carriage road network has increased from about 16 km to over 80km as of December 2018 with the completion of the Kampala - Entebbe Express way. Though travel time has been reduced on national roads, increased cargo traffic on these roads has served to erode much of the positive gains. In this regard, total alignment of the Uganda National Physical Development Plan 2018-2040 with NDPIII is required. (viii) National access to electricity increased from 11 percent in 2010 to 24 percent in FY 2018/19. The cost of energy reduced from 9 cents and 16 cents in FY2012/13 to 8 cents and 9.8 cents for extra-large and large industries by September 2018, respectively. (ix) The proportion of the labour force in paid employment increased from 17.3 percent in 2011/12 to 19.5 percent in 2016/17. The percentage of the working labour force increased from 79.1 percent to 81.1 percent over the same period. However, labour underutilization remains a challenge as a large population of Ugandans are underemployed i.e. being either highly skilled but working in low paying jobs or working part-time. (x) Access to and utilization of education services has significantly increased. Government continued to invest heavily in the education sector over the NDPI and NDPII period. Consequently, 92 percent of all parishes now have a government- aided primary school, while 71 percent of all sub-counties have a government aided secondary school. Most regions of the country also now have a public university. In addition, government has promoted participation of the private sector in the provision of education. As a result, primary school enrolment increased to 8,655,924 children and 1,457,277 for secondary education in FY2016/17. Enrolment at the tertiary level now stands at about 259,000 of which 162,299 are attending universities. The aggregate impact of all this is an increase in literacy rate (of persons aged 10 years and above) from 70 percent in FY2012/13 to 74 percent in 2016/17, and average years of schooling from 4.7 in FY2012/13 to 6.1 in FY2016/17. (xi) Enrolment at Business, Technical and Vocational Education and Training (BTVET) increased significantly. Skills development has also been facilitated by the refurbishment and establishment of technical and vocational institutions, especially at the district level. Currently, 42 percent of all districts have at least one government aided technical and vocational institution providing varying levels of skills development. Consequently, enrolment into BTVET increased from 25,262 to 129,000 between 2008 and 2017. Progress has also been registered towards the 4 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 establishment of four centres of excellence at UTC Elgon for civil works and building technology; UTC Lira for highways construction and drainage, bridges and road construction; UTC Bushenyi for food manufacturing and food processing; and UTC Bukalasa Agricultural College for crop and animal husbandry. More investment and closer alignment of the training provided with the principles of NDPIII will be required. (xii) Access to and utilization of health services has significantly increased with the population living within a 5km radius of a health facility increasing from 83 percent in 2012/13 to 86 percent in 2016/17. By 2018, 75 percent of the population lived within a five-kilometer radius of a health facility. The health infrastructure network has improved in the country and currently consists of 2 national referral hospitals, 19 regional referral hospitals, 147 district hospitals, 193 HC4s (medical officers present); 1250 HC3s (clinical officers present), and 3610 HC2s (enrolled comprehensive nurses present). Significant progress has also been made in the provision of specialized medical care in cardiology and gynaecology. A modern state of the art women’s hospital with a capacity of 320 beds was opened in Mulago in 2018. The heart and cancer institutes of Mulago hospital have also been expanded and improved. This has increased access and utilization of health services. In-patient malaria deaths have reduced from 20 per 100,000 in 2016/2017 to 9.38 per 100,000 in 2017/2018 largely due to the effective distribution of insecticide treated nets (ITNS). HIV deaths reduced by 58 percent (56,000 deaths to 23,000 deaths) between 2010 and 2018, and new infections reduced from 92,000 to 52,000. In addition, between FY2012/13 and FY2016/17, infant mortality per 1,000 live births has gone down from 54 to 43 deaths of children, maternal mortality decreased from 438 to 336 deaths per 100,000 live births, and stunting has reduced from 33 percent to 29 percent, respectively. The aggregate impact of all this has been the increase in life expectancy by 9 years from 54.5 in 2012 to 63.3 years in 2017.

1.2.2 — Challenges

1.2.2 Challenges 9. There are areas where the country needs to do more. These include: (i) A large proportion of households (68.9 percent, Population Census Report, 2014) is still stuck in the subsistence economy. This segment of the population consists of largely small holder farmers, (living on fragmented pieces of land) that rely on peasant farming for home consumption and hardly realize any surplus for the market. Improving the incomes of this segment of the population will be central in the NDPIII period through increasing their land productivity and value addition to their products. (ii) Uganda’s high population growth rate at 3 percent is straining its capacity to deliver public services and accelerate economic growth. At an estimated 41.6 million people in 2020, Uganda’s population is expected to double (84 million) by 2040. This has resulted into an unfavourable age structure, where a significantly young population (0 – 14 years) constitute 49.3 percent, revealing a high dependency 5 NATIONAL PLANNING AUTHORITY burden. While the young population creates a potential market and labour force if well invested in, the country is failing to cope with the required investment. Indeed, per capita expenditure on education has declined from 3 percent (2017/18) to 2.3 percent (2018/19). (iii) In addition, a large youthful population consisting of 23 percent of the population (approx. 9.6 million people) creates both an opportunity and a challenge. It creates an opportunity because of the potential demographic dividend from abundant labour force and future demand. However, if the anticipated youth bulge is not well planned for through balanced investments in social and economic policies, it creates a challenge and the spectre of missing the demographic dividend. This problem is compounded by a mismatch between skills required for labour markets and knowledge produced by training institutions. Equally the limitations of investment capital make it difficult for the youth to tap into the available opportunities. This creates the urgent need for skilled, technical and hands-on manpower personnel for the economy. Hence unless concerted effort is made to exploit the potential demographic dividends arising from youthful population, the unemployment problem will continue to increase. (iv) High Cost of electricity. Progress has been made in the reduction of the cost of electricity over the last 4 years from 9 cents to 8 cents and from 16 cents to 9.8 cents for extra-large and large industrial consumers respectively. However, it is still higher than the target of 5 cents per unit and the cost is a further burden on both investors and private consumers. The cost is even higher for medium industrial consumers at 15.6 cents for a unit and for commercial consumers (cottage industries) at 17.5 cents per unit. This renders most such industries uncompetitive which is deeply problematic as small-scale cottage industries are the engines of growth and job creation in most economies in Africa and generate quicker returns to local communities. (v) Persistent vulnerabilities and wide-regional disparities in attaining required poverty reduction targets. The percentage of people living below the poverty line (1.00 USD per day) was 21.4 percent in FY2017/18 compared to the NDPII target of 14.2 percent. Moreover, there are wide regional disparities with Bukedi (43.7 percent), Busoga (37.5 percent), Bugisu (34.5 percent) and Teso (25.1 percent) experiencing reversals compared to the previous poverty levels. Over the NDPII period, there was frequent economic loss and human mortality from disasters driven by increasing hazards, exposure and vulnerability mostly affecting these regions. Many households in these sub-regions depend on crop agriculture as their biggest source of income and this highlights the urgent need for an industrialization strategy to add value to agricultural produce. (vi) Low investment in social protection systems. This has impacted on poverty and vulnerability levels across the entire population. (vii) Limited access to and high cost of capital. The credit available to the private sector is characterized by high interest rates, high collateral requirements and short-term in 6 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 nature. The main source of development finance for businesses is short-term credit mainly from commercial banks where lending rates average 20 percent per annum. Furthermore, 20 percent of the adult population in 2018 accessed financial services informally, while 22 percent have no access at all. Currently, bank accounts per 1000 adults in Uganda stand at about 206. Improvements in affordable long and short- term credit are required. (viii) Weak accountability for results in public service and prevalence of corruption. The civil service is in general weak and not adequately equipped to drive development. For instance, the implementation of almost 50 percent of all NDP II core projects is unlikely to start before expiry of NDP II. This is due to a lack of capacity, a lack of will and diverse pressures placed on civil servants from other sources that all combine to frustrate the successful implementation of policy. This is compounded by prevalence of corruption that has increased the cost of doing business for both the public and the private sector. Addressing this will be key to transforming articulated goals into reality. (ix) Severe reduction in the forest cover as well as wetland degradation and encroachment. The forest cover in Uganda has reduced from 20 percent in 1986/87 to 9.5 percent in FY17/18 while wetland cover was reduced from 13percent to 10.9 percent over the same period. This has led to climate change as evidenced by severe weather patterns, prolonged droughts and floods. The implication is increased vulnerabilities and disparities in incomes as well as loss of livelihood to the population and reduction in GDP growth rates. The continued environmental degradation, loss of forest cover and wetlands is impacting negatively on Uganda’s tourism, agriculture, among others; therefore, needs to be addressed urgently. (x) Dwindling local revenues insufficient to fund local service delivery. Local governments remain heavily reliant on the central government for funding. Despite an increase in the percentage share of the local government grants transferred from the National Budget from 12 percent in FY 2017/18 to 14.8 percent in FY 2018/19, most subnational expenditures (around 60 percent) are dedicated to recurrent expenditures, in particular the payment of wages and salaries. This leaves very little (around 30 percent) for actual service delivery. This is in spite of the fact that the population and the number of local governments have increased. To increase service delivery at the local level, this challenge needs to be addressed. (xi) Uncoordinated approaches to implementation planning. Government institutions continue to operate in “silos” with little integrated thought as to how to deliver on pledges and policies of government. All aspects of the NDPs require national buy- in and this starts with government. It is unsustainable and counter-productive to have the planning of major development projects undermined by a lack of coordination. Development projects are not isolated stand-alone items but directly impact on a wide variety of competencies covered by numerous government departments and institutions. This is true, both within and between sectors. Fully functional sector working groups exist only in a few sectors such as health; the justice, law and order 7 NATIONAL PLANNING AUTHORITY sector; education and energy. Coordination across government needs to be revisited in order to strengthen results-based planning and implementation. (xii) The Quality of education remains low characterized by the low levels of literacy and numeracy, coupled with the high rate of school dropout. Although primary school dropout rate has reduced from 50.9 percent to 38.5 percent over the last 14 years, it still remains a problem. This has led to an increase in the number of unskilled Ugandans joining the labour market and there is no deliberate effort yet by government to trace and retrain the school drop-outs with the necessary skills as per the labour market demand. (xiii) High burden of disease amidst low functionality of health facilities. Uganda, like many other low- and middle-income countries, is still grappling with a persistently high burden of common infections, maternal, child health, and nutrition complications as well as pandemics and epidemics. Further, the burden of NCDs is rapidly increasing with high mortality incidences outstripping existing health investments. Antimicrobial resistance is increasingly becoming a major challenge with the potential effect of increasing mortality, morbidity and cost of healthcare. Uganda has attained nearly 100 percent geographical coverage of the population living within a 5km access of any facility providing basic health services for communicable diseases. However, actual functional coverage and service delivery performance is much lower and sub optimal. This is due to limited coverage of comprehensive services, especially for preventive, specialty and diagnostic services. In addition, the critical gap in human resources for health and infrastructure in the country has reduced the functionality of many health facilities at all levels, especially in the rural areas. Health financing is inadequate and not efficiently organised; total health expenditure per capita is only USD 51 compared to USD 86 required to deliver the essential package of services in the context of UHC, largely funded through unsustainable external sources and high financial risk due to high out of pocket expenditure. (xiv) Undernutrition among children and women remains high. While stunting has reduced from 33 percent to 29 per cent and wasting is around 4 per cent, these are still a public health problem in several regions across the country. Nearly half of the children under 5 years are anaemic (53 percent) while nearly a third of women of reproductive age (32 percent) are anaemic. Undernutrition is a major risk factor for morbidity and mortality among children (xv) Slow Project Implementation. The implementation of core projects under the former NDPs has been slow, adversely affecting growth and job creation and undermining Vision 2040. Out of the 42 NDP II core projects, only 17 are on schedule, while 5 are under implementation but behind schedule. The rest are either only at the feasibility stage or have not yet started (see Annex 1). 8 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

1.2.3 — Lessons learnt

1.2.3 Lessons learnt 10. Based on the review of the country’s performance during the past eight years of implementing the NDPs, a number of major lessons have been considered while developing NDPIII. These are: (i) The need to increase investment in the productive sectors of the economy in order to optimize use of the increased infrastructure capacity. Heavy investment in economic and social service infrastructure has narrowed the huge deficits. However, there has been inadequate corresponding investment in the productive sectors of the economy resulting in low returns on infrastructure investments thus limiting optimal economic growth rates. Going forward, NDP III needs to re- prioritize investment in the productive sectors (particularly in agriculture, manufacturing and ICT) in order to optimize use of the infrastructure capacity that has been put in place in form of increased electricity generation capacity, all weather roads and telecommunications services. Additional investment in infrastructure should only be targeted to address specific gaps constraining rapid growth in the productive sectors. (ii) The need to balance social and infrastructure spending to achieve better development results. Investment in productive sectors without corresponding investments in improving the quality of human capital would increase Uganda’s GDP from the 2017/18 level of USD 110 billion to USD 495 billion and GDP per capita of USD 825 in 2018 to USD 6,735 in 2040 respectively. However, Uganda’s economy would grow faster if we concurrently prioritize and implement job-oriented economic reforms and investments in human capital, and attain the Vision 2040 target of being a higher middle-income country in 2040 with a GDP per capita of USD 9,523. (iii) The need to revisit the development approach particularly the role of government in the development process. Under NDPI and NDPII, government relied on market forces and the power of competition to bring down interest rates, the cost of electricity, the cost of ICT services, and direct investment in strategic areas of the economy. However, interest rates remain above 18percent even when the Central Bank Rate has been reduced to 10 percent. The cost of electricity remains above the targeted 5 cents per unit for all consumer categories. Access to the internet (specifically broadband) remains low due to limited coverage and the cost of accessing it remains high. There is considerable under-investment in manufacturing industry, the ultimate driver of the socio-economic transformation. It is unlikely that left on its own, the market alone will drive Uganda’s Development, a quasi-market approach is required. In which a strategic public sector crowds in private investments. Towards this, government needs to increase efficient and planned participation in the economy in order to direct development. Industrial policy and the construction of a developmental state needs to be central to NDPIII. In doing so, Uganda government needs to actively implement strategies 9 NATIONAL PLANNING AUTHORITY aimed at unlocking investment in strategic areas of the economy such as agro- industrialization, manufacturing, minerals, oil and gas as well as ICT. All of these have huge potential, but none of these sectors can be left to the market forces alone. (iv) The need to strengthen Public Investment Management (PIM). There is need to strengthen the entire PIM system right from identification, preparation, appraisal, implementation and evaluation of projects. In particular, focus should be on strengthening alignment between the planning, budgeting and budget implementation processes as well as coordination with development partners and civil society. Under NDPI and NDPII, alignment between the NDPs, the national budgets and ministerial annual work-plans remained weak and this contributed to under-performance in some areas (as identified above). While alignment at the macro (or strategic) level has been arguably better, it is much weaker at the sector and line ministries, departments and agencies and/or operational levels. Consequently, many priorities in the NDPs have not been implemented and the potential has not been reached. Under, NDPIII, the government at all levels needs to design and implement a mechanism that will require much stronger alignment and integration between the planning, budgeting and budget implementation processes in order to increase the rate of realisation of national priorities and maximise synergies. This mechanism should also bring on board development partners and civil society to ensure all stakeholders are implementing the same set of priorities. In addition, there is need to strengthen project preparation and appraisal to improve the implementation of projects. The NDPIII Project Investment Plan (PIP) will be improved to categorize all investable ideas into bankable projects and match them to innovative financing opportunities. Projects will be grouped as core and others to guide sectors on project selection. Further, the structure of the MoFPED PIP shall be reviewed with a focus on giving priority to core projects. (v) The need to re-focus efforts on the production of a minimum threshold of relevant and appropriately skilled labour for the economy. A country that does not invest in its people only mortgages its future. The implementation of NDPI and NDPII came with a number of huge investments that required skill sets that the formal and informal education systems are not producing, particularly in the electric power generation dams, transport infrastructure and the oil/gas industry. These skill gaps will be further amplified during the NDPIII period as the scale of investment in these new sectors of the economy increases. Drastic action is thus required to address the serious skills shortage in Uganda. Going forward, NDPIII should thus prioritize interventions aimed at forecasting human resource requirements for the economy and then re-engineering the formal and informal education systems to respond in a timely manner. (vi) The need to bring government closer to the people in order to effectively address their development needs. The implementation of NDPI and NDPII was pegged at the MDA and district level and that is understandable as that is where service delivery occurs. At present, the sub-counties and parishes particularly, are 10 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 largely dysfunctional with regard to the provision of production related services such as agricultural extension services, commodity bulking, cooperative development and community mobilization. As a result, rural poverty has become further entrenched as a disproportionate percentage of the population remains trapped in subsistence agriculture. In addition, regional income disparities are widening as the regions dependent on crop farming experience stagnation or experience a continuing reduction in household incomes. Starting with NDPIII and going forward, the government needs to strengthen the subcounty as the lowest planning unit and the parish as the administrative and operational hub for all government services at the local level. The continued and intensified application of the Human Rights Based Approach (HRBA) is crucial to ensure that development policies and processes are people-centred and sensitive to their needs. In doing so, the recommendations are that government builds; a) mechanisms into the NDPs to address/reduce regional inequalities. Regions have different development potentials and face different constraints that require different interventions. Spatial planning using the Area Based Commodity Planning approach should be used as a major driver for local economic development to address regional disparities. The localization of policy in this sense can be a useful mechanism to deliver. b) on the efforts made under NDP II, with the application of the HRBA by all sectors, Ministries, Departments and Agencies, as well as local Government; c) a robust NDP monitoring and evaluation system that integrates sector and local government management information systems. (vii) Identify and exploit alternative revenue sources to complement domestic revenue collection. For government to be able to finance this plan, there is need to explore other forms of financing, in addition to enhancing domestic revenue mobilization. In this regard, the private sector, the diaspora community and development partners all need to be involved in the drafting and implementation process of this plan to ensure all stakeholders are using their resources to implement the same set of development priorities. Using this approach, it should be possible to tap into resources held by pension sector, diaspora community, the private sector and development partners. (viii) The need to break down the silo approach to planning, budgeting and implementation. Planning and implementation of government programmes remains largely confined within sectors and MDAs, along sectoral/MDA mandates. As a result, the synergies and complementarities that could be derived from a more holistic approach are often forfeited. Under NDPIII, the programme-based approach to planning has been adopted. A total of 18 programmes have been designed to address the identified development challenges inhibiting growth. These programmes address the different aspects of an identified development challenge along the value chain in a systematic and comprehensive manner. 11 NATIONAL PLANNING AUTHORITY (ix) The requirement to place more effort on resolving the issue of land compensation. Access to land for infrastructure development as well as other development activities such as manufacturing and agriculture have become prohibitive. In fact, costs associated with compensation of Project Affected Persons (PAP) have become more expensive than the actual cost of the projects themselves. This issue needs to be addressed in order to fast-track implementation of development activities. The possibility of corruption in increasing the costs of compensation cannot be discounted. (x) The need to incorporate risk planning and mitigation into the plans and budgets to cater for unforeseeable challenges. NDPI and NDPII did not sufficiently address risk management. Hence, there were no mitigation measures inbuilt in the implementation of these two previous plans. Consequently, NDPIII has incorporated a Risk Management Plan that spells out the key risks such as disasters, geo-political risks within the region, that may materialize during implementation and the mitigation measures that will be undertaken to ensure there is no development setback. (xi) The requirement to prioritize efforts aimed at identifying market opportunities in global and regional protocol to which Uganda is signatory. The country’s trade balance remains negative and export receipts are far below their potential. However, there are significant market opportunities that are opening up through the various protocols to which Uganda is signatory or involved, such as the East African Community, the Africa Continental Free Trade Area (AfCFTA), Forum for China Africa Cooperation (FOCAC), the European Union Everything But Arms (EBA), and others. Until now, the country has not planned sufficiently to take advantage of these new trading arrangements and opportunities. The private sector remains inadequately informed about these arrangements and the opportunities they present. NDPIII aims to mainstreamed interventions aimed at increasing exports by exploiting new emerging market opportunities.

1.3 — How NDPIII is different from NDPI and NDPII

1.3 How NDPIII is different from NDPI and NDPII 11. NDPIII builds on previous NDPs but to fast track realization of results, a programmatic approach to planning is adopted (discussed below). The priorities will remain: agriculture, ICT, minerals and petroleum development, manufacturing, human capital and infrastructure development. Nevertheless, the approach to delivery will change in NDPIII to focus on achievement of results through a programmatic approach to planning and budgeting. NDPIII will therefore focus on resource-led industrialization through value addition in agriculture (agro-industrialization), minerals, petroleum and manufacturing. 12. The increased role of the state. Whereas in the previous NDPs the private sector was assumed to drive growth, under NDPIII the role of the state in guiding and facilitating development will be strengthened in order to fully exploit the quasi market and PPP approaches in development. In this case, Government will invest either wholly or jointly with the private sector and the communities in strategic enterprises in order to spur growth in a balanced manner across the country. 12 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 13. Increased investment in fundamentals (Human Capital Development, Transport, Energy and ICT) that will bridge the gaps between what is needed to exploit our development opportunities and what is currently available. For instance, with regard to human capital, there are significant skill gaps in internationally certified welding, scaffolding, machine operators, assemblers and drivers. So, investment in skills development will be focussed on production of these in sufficiently large numbers to work in the expanding mineral and petroleum development sectors. With regard to Transport, focus will be on improving transport multi-modal interconnectivity in order to reduce the transportation costs of goods within the country and in the region, reduce travel times especially for the transportation of perishable goods, and improve efficiencies in connecting the different modes of transport. In Energy, focus will be on increasing access, to electricity, improving reliability of the network through among others investing more in evacuation and transmission of the electricity being generated to areas where it can be used like in industrial parks and zones. 14. Introduction of a programme approach to planning complemented by area-based commodity and spatial planning to: (i) Focus implementation on delivery of common results, including SDGs, East African Community targets and Africa Agenda 2063 targets. Achievement of results specified in these development frameworks does not neatly fall within any particular sector. (ii) Strengthen alignment and eliminate the ‘silo’ approach to service delivery and enhance synergies across sectors and other actors (iii) Provide a framework for the already existing programme-based budgeting (iv) Address area specific priorities and inequities in growth and household incomes 15. Adoption of an integrated Human Resource Development Planning Approach. To harness the potential of human resource to adequately drive Uganda’s development agenda, NDPIII has adopted an integrated Human Resource Development Planning approach. A 5- Year National Human Resource Development Plan (NHRDP) has been developed as an attendant plan to the NDPIII. The 5-Year NHRP is the first of its kind within the Vision 2040 period and lays down strategies to guide and streamline the development of human resources in line with the short term, medium and long-term national development priorities. The NHRDP serves as a tool that determines the demand and supply of human resources by quantifying the skills and education qualifications that the country needs in the short term as well as over the medium and long terms while considering national, regional and international focus into context. 16. Clear and interlinked results and targets at the Goal, Objective, Programme and Project level that are directly linked to budget formulation and budget implementation processes. NDPIII will be based on national programmes and projects with clear results and targets. These programmes and targets will be the basis for the formulation of the national budget in order to strengthen the link between planning, 13 NATIONAL PLANNING AUTHORITY budgeting and budget implementation as well as between NDP targeted results and national budget expenditure.

1.4 — Approach and formulation process of the NDPIII

1.4 Approach and formulation process of the NDPIII 17. The production of NDPIII is in line with the planning process outlined in the Comprehensive National Development Planning Framework (CNDPF, 2007) and the National Development Planning Regulations (2018). A mix of top-down and bottom-up approaches is used which aims to ensure that strategic guidance is provided at the national level and that the articulation of the identified development priorities is done at sectoral and local government levels through the development of national development programmes and projects. The strategic direction of NDPIII was informed by an extensive consultation process based on background analytical work on past industrialization efforts and strategies, trends in key growth areas (agriculture, ICT, minerals, oil and gas), export and import performances, and sector priority papers, among others. 18. Contributions and inputs were also sought from targeted stakeholders, for example, high level political and technical leaders, industrial and business owners, as well as regulation and implementation authorities. Consultations with sector, regional, district, and community level stakeholders were also conducted. Other stakeholders including the private sector, civil society, faith-based organizations, Non-Government Organizations (NGOs), academia and Development Partners (DPs) also played a substantial part in informing the process.

1.5 — Structure of the Plan

1.5 Structure of the Plan 19. This Plan is organized into four parts, namely: (i) Part One: Background, performance under previous plans and development context. This has Chapter 1 which presents the background to NDPIII, including review of performance under NDPI and NDPII; Chapter 2 which provides the global and regional development context within which NDPIII will be implemented; and Chapter 3 that discusses the national development outlook. (ii) Part Two: Strategic direction. This section comprises of Chapter 4 of NDPIII which discusses the strategic direction for the plan outlining the goal, theme, objectives, key results and strategies, the theory of change and flagship programmes. (iii) Part Three: Development programmes and implementation strategy. Chapters 5 to 22 present the detailed articulation of the National Development Programmes. (iv) Part Four: Costing and Financing, Risk Management, Monitoring and Evaluation. This is the final section of NDPIII and consists of Costing and financing, Risk Management, as well as Monitoring and Evaluation Strategy that will be used for assessing the success in implementing the Plan and for realising our country’s developmental aspirations. 14 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 2: REGIONAL AND GLOBAL DEVELOPMENT CONTEXT

2.1 — Introduction

2.1 Introduction 20. The global and regional perspectives provide both opportunities and threats that inform NDPIII strategic focus. 21. Global growth is uncertain, tilted on the downside as the impact of the Corona pandemic is not clear. Global growth was 2.9 percent in 2019 and economies are likely to be in recession in 2020 as the Corona pandemic impact becomes clearer. This projected growth rate is expected to hover around the same level or reduce slightly over the NDPIII period. Asia will likely continue to generate much of the global growth; growth in the region will probably remain above 5 percent. The dispute between China and the United States is expected to continue to affect the continent. The African Development Bank (AfDB) has warned that the dispute could cause a 2.5 percent reduction in GDP in resource- intensive African countries and a 1.9 percent reduction for oil exporters by 2021. Meanwhile, apart from the oil-dependent nations (such as Nigeria and Angola), growth in Africa is projected to remain strong, with Uganda among the few countries in the greater East African region anticipated to be among the fastest growing economies in the world by 2025. 22. The global population is expected to increase from an estimated 7.7 billion as of February 2019 to 8.1 billion by 2025 with just nine countries contributing to half of that increase. These nine countries include five from Africa and three from Asia. Roughly the same countries that will drive global economic growth over the NDPIII period will be the same countries that will experience the fastest population growth rates signalling a shift in demand patterns and a significant rise in consumption of food and food products, the extractives and manufactured goods in those countries. These developments signal an opportunity for Uganda to benefit from expanded markets for her food and food products, extractives and manufactured goods if policies are prudently put in place and implemented. 23. Global trade will moderate due to trade tensions among a number of countries. However, the rise in global population numbers coupled with an emerging and expanding middle class in Africa and Asia, respectively, will mitigate the reduction in trade in the developing world. Due to an increase in and the emergence of manufacturing capacity in Asia and Africa, consumption and trade patterns will increasingly be determined by distances to markets, competitive advantage and, possibly, even protection. 24. As a landlocked country, Uganda will need to work closely with its neighbours to increase access to regional and international markets and take advantage of existing opportunities. Uganda is signatory to regional and international development agendas that present opportunities for development cooperation with other state and non-state organizations as well as commitments to increase the wellbeing and quality of life of its constituents. They present a platform for mobilizing (financial and technological) resources to fund joint programmes and projects that seek to improve economic infrastructure for increased connectivity and competitiveness of the region with the rest of the world. These include the East African Vision 2050, the Africa Agenda 2063 and the United Nations 15 NATIONAL PLANNING AUTHORITY Sustainable Development Goals (2030 Agenda). These regional and international development agendas, which are fundamentally rooted in the principles of inclusivity, equality and leaving no one behind, require that the country achieve certain set development targets within specified timeframes. 25. Emerging regional and global trends will provide both opportunities as well as challenges that should be harnessed and mitigated in NDPIII. Economic growth, demographics, trade and consumption patterns as well as changing dynamics of global value chains present opportunities as well as potential risks for the country’s socio- economic transformation agenda. Opportunities for Uganda to grow its regional and global market presence abound in agro-industrialization, software development and programming, production of common household user goods through light manufacturing, and delivery of specialised health services and education. However, threats in climate change, cyber security, regional conflicts and their impacts on refugee influx must be planned for in NDPIII.

2.2 — Key Development Opportunities

2.2 Key Development Opportunities

2.2.1 — Increased demand for agricultural exports

2.2.1 Increased demand for agricultural exports 26. The demand for agricultural exports is projected to increase due to the increasing global population, level of urbanization and rising incomes hence better prospects for food and food products and agro-industrialization. However, in spite of its global comparative advantage in agriculture, Africa remains a net importer of food and processed agricultural products worth USD35 billion annually. This is expected to grow up to USD110 billion annually by year 2025. Nigeria, South Africa and Angola are the top importers and the three of them account for almost half of all the imports into the continent. Also, as the environmental footprint due to improved agricultural production surges in Southeast Asia and Latin America, production and export of processed agricultural commodities has the potential to be a major growth driver for many African countries, including Uganda resulting into increased export of processed agricultural commodities to the rest of Africa and Europe. Uganda has significant potential to supply a significant portion of this market. About 80 percent of Uganda's land is arable, but currently only 35 percent is being cultivated. Agriculture accounted for about 21.5 percent of GDP in 2017 and 46 percent of export earnings. Much of the export earnings from agriculture is from export of unprocessed raw materials. There is, thus, room to increase export earnings. Given that nearly three quarters of our population are employed in agriculture, the net benefit to the country would be significant.

2.2.2 — Increased competitiveness in Manufacturing

2.2.2 Increased competitiveness in Manufacturing 27. Africa and Uganda in particular has an opportunity to increase value added in manufacturing. Africa accounts for only 1.9 percent of global value added in manufacturing and this has not radically changed for decades in spite of the rising levels of urbanization across the continent. Africa’s industrial value added contracted from USD 702 billion in 2012 to USD 603 billion in 2018 with countries such as Nigeria, South Africa 16 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 and Algeria leading the decline (AfDB). For Uganda, most of our trade deficit is made up of imports of light manufactured goods from China and India that, until now, have produced these commodities more competitively due to low labour costs and higher labour productivity. Nevertheless, China’s rising labour costs is an opportunity that needs tapping. The reserve pool of labour that enabled transnational corporations to generate mega-profits in the 1990s caused rapid economic growth over the past decade that has led to a rapid increase in wages. The median monthly wage in Shanghai is now USD 1,135, which is close to that of Poland (USD 1,569) and virtually the same as Hungary’s (USD 1,139). Consequently, China is gradually shifting from low technology, labour intensive production to the production of high-end technology goods. This is an opportunity for Uganda. In Uganda, as in most of Africa, our major competitive advantage is the low cost of labour.

2.2.3 — Increased Regional and International Transport Connectivity to facilitate trade

2.2.3 Increased Regional and International Transport Connectivity to facilitate trade 28. Uganda must plan to take full advantage of this increased transport interconnectivity to increase exports to the Africa region as well as Asia and the Middle East. Uganda’s transport interconnectivity to the region (East and Central Africa) through the Northern and Central Corridor transport projects and Asia through the Maritime Silk Road is gradually improving. Through the Northern Corridor Transport project, the road connections to Juba and the Democratic Republic of Congo as well as the Maritime Silk Road will open up access to the wider East and Central African Region as well as Asia and the Middle East. The East African region’s total road network in 2008 was 183,178 km, of which only 19 per cent was paved. Additionally, only 70 per cent of its paved roads are classified as being in good condition. By 2030, the paved road network will be 35,250 km, and is expected to reach 65,700 Km by 2050. The EAC has prioritized ten international road transport corridors (the East African Road Network) totalling to fifteen thousand eight hundred kilometres (15,800 km). China has introduced the Maritime Silk Road linking China across the Indian Ocean to East Africa and up through the Suez Canal into the Mediterranean and European markets. The improving interconnectivity is an opportunity that should be tapped.

2.2.4 — Continued demand for natural resources

2.2.4 Continued demand for natural resources 29. Good economic growth prospects in South East Asia and one third of the countries in sub-Saharan Africa create a strong appetite for natural resources. Even though growth is expected to slow down a little in the rest of Africa, it is expected to remain positive. As a result, manufacturing and construction activity is expected to continue growing. It is therefore expected that demand for iron and steel, cement, plastic plumbing materials and other petro-chemical construction and household consumables is expected to continue. There will also be an increase in demand for phosphates and its derivatives as these are used in agriculture, construction and the foods and beverages industry. Further, as the world works towards commitments to keep the global average temperature rise at or below 2°C, minerals and metals that will likely increase in demand include: aluminium, copper, lead, lithium, manganese, nickel, silver, steel, and zinc. Uganda has significant deposits of many 17 NATIONAL PLANNING AUTHORITY of these minerals in commercially viable quantities in the areas where exploration has been done. In addition to the discovery of oil deposits, the country has discovered significant deposits of iron ore, phosphates, copper, marble/limestone, and dimension stones among others. There is also great promise that there are significant mineral deposits in the areas that have not been fully explored yet. Given trends in demand for these minerals, the country has the opportunity of profitably exploiting these minerals. The projections for the price of crude oil to hover around its current price of about USD 60 over the NDP III period indicates that commercial production of oil remains viable even though the window for profitable exploitation of oil is narrowing as concerns over climate change increase.

2.2.5 — Opportunities for Leveraging advances in ICT for Development

2.2.5 Opportunities for Leveraging advances in ICT for Development 30. With over two billion Internet users, six billion mobile phone subscriptions, and numerous other devices intercommunicating in a vast real-time multi-network, supporting every facet of human activity, ICT is an opportunity. Technology is now being used to form new communities and platforms to address problems and exploit opportunities without conventional/physical management. It is now possible to deliver quality services using technology at a fraction of the cost of delivering those services using conventional means. Through use of tele-education, tele-medicine, and e-government, hard to reach communities can now be effectively reached and served in a cost-efficient manner. Uganda has been one of the pioneers of mobile payments on the continent and much e- commerce transactions are actually m-commerce. Given the immense advantages of connecting the population to the internet and to mobile networks, both universal broadband access and complete mobile coverage nationally should become a national priority in terms of infrastructure. There is also a huge potential for Ugandan companies to develop their own digital content and online services. This needs to be supported. Internet connectivity should also make it easier to draw diaspora professionals and other hard-to-get technical professionals into the country’s development discourse as well as business outsourcing opportunities accessible.

2.2.6 — New Innovative Development Financing Options

2.2.6 New Innovative Development Financing Options 31. Given the limited fiscal space the country needs to identify and utilize new innovative financing options to exploit identified opportunities. These opportunities are evident in increasing the supply and access to electricity, expanding coverage of broadband internet and the other economic infrastructure needed, However, access to concessionary funding is limited, and unlimited use of commercial loans is likely to raise issues of debt stress. Given this reality, there are two possibilities that raise new opportunities for development financing. First, is in redirecting remittances away from consumption to development, for instance through use of diaspora bonds. Remittances from Ugandans working abroad have increased significantly from USD 819 million in FY2010/11 to USD 1.4 billion in FY17/18. Second, is in the use of blended finance to leverage development aid and philanthropy to attract private sector funding and/or make effective use of commercial loans. Another option could also be in the form of negotiating multi-country funding of development projects. For instance, Uganda, South Sudan, DRC and Tanzania could implement a jointly 18 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 funded unified power grid to serve South Sudan, Eastern DRC and northern Tanzania, significantly reducing the amount of capital that each country needs to mobilize.

2.3 — Threats

2.3 Threats

2.3.1 — Climate Change and its Impacts on Agriculture and Economic Growth

2.3.1 Climate Change and its Impacts on Agriculture and Economic Growth 32. Conflict and climate change are major contributing factors leading to growing number of people facing hunger and forced displacement, as well as curtailing progress towards most development targets. For the first time in more than a decade, there were approximately 38 million more hungry people in the world, rising from 777 million in 2015 to 815 million in 2016. The year 2017 was one of the three warmest on record and was 1.1o C above the pre-industrial period. The five-year average global temperature from 2013 to 2017 was also the highest on record. The world continues to experience rising sea levels, extreme weather conditions and increasing concentrations of greenhouse gases. In Uganda, droughts are now more frequent and more severe leading to frequent cases of crop failure. The country has experienced frequent cases of flooding and landslides. For the first time in more than a decade, there was a reversal in the poverty levels in 2017 largely due to droughts and crop failures. The regions and economic groups that have experienced poverty reversals were those that largely depended on crop farming as their source of livelihood. The effects of climate change are further exacerbated by deforestation, land degradation and wetland degradation and encroachment. However, Uganda, like much of the world, is victim to forces outside of its control. Uganda’s contribution to global warming and climate change is minimal, however, it is forced to deal with the symptoms of processes caused outside her borders. Uganda intends to fulfil its international obligations with regard to reduction of national emissions and adapt to the impacts of climate change by allocating the necessary resources to implement the partnership plan.

2.3.2 — Regional Conflicts and the Refugee Challenge

2.3.2 Regional Conflicts and the Refugee Challenge 33. Uganda is currently the third biggest refugee hosting country worldwide and largest in Africa. Uganda is currently hosting about 1.33 million refugees and approximately USD 2 billion is needed to finance the various multiyear integrated sector response plans in health, education, jobs and livelihood and water and environment amidst dwindling global resources to support refugees. Whereas Uganda’s policy towards refugees has been applauded globally, the country’s resources could be overwhelmed by the high and increasing number of refugees. In the districts of West Nile, south west and northern Uganda as well as the slums of Kampala where many of these refugees are settling, their impact on the environment as well as demand for social services is substantial. Refugee populations in some districts is higher than the host population. 34. Unresolved conflicts in the Great Lakes region are driving these refugee numbers and also affect regional trade potential. Many of these conflicts have their roots in the exploitation of and access to natural resources, identity clashes and governance issues. Whereas these conflicts are initially intrastate, they have the potential to draw in the 19 NATIONAL PLANNING AUTHORITY surrounding countries due to the transnational nature of some of these communities and the conflicts involved. Conflicts which may have begun over access to and/or exploitation of natural resources (land or minerals) can quickly expand into governance and identity conflicts. Uganda has and continues to be an active participant in the resolution of regional conflicts as regional peace and security is in the self-interest of the country. Moving forwards, Uganda needs to continue to participate in and intensify efforts to bring peace to the region. This must be done through cooperation with the international community as well as its regional neighbours. Voluntary repatriation of refugees to their home countries, once peace has been realised, can be explored only when the conditions of safety and dignity are in place.

2.3.3 — Cyber Security

2.3.3 Cyber Security 35. Cyberspace is now a medium for disinformation among competing commercial interests, ideological adversaries, governments, and extremists, and it is a battleground between cybercriminals and law enforcement. Cyberattacks at the level of cyberwar have already occurred, and are occurring with increasing frequency and effect. Three major approaches to cyberattacks are: breaking into a system to steal information from computer systems or networks; directly affecting the functionality of computers or related equipment through the use of worms, viruses, logic bombs and/or other malware; and the denial of service whereby a system is flooded with messages that overwhelms them and renders them non-functional. Targets may include businesses, military command and control systems, transportation systems, power grids, manufacturing facilities and communication systems. Uganda needs to significantly invest in building the competencies of communication structures to be able to anticipate or avert potential attempts at disrupting government and/or commercial operations in its territory as well as stop or disrupt attempts at spreading misinformation to foment unrest. Some of the steps Government can take in this regard include: enacting regulation of cyberspace, increasing resources for cyber- defence (both public and private) and, significantly, isolating critical infrastructure (e.g. power grids) from the internet.

2.3.4 — Brain Drain stymying Innovation, Research and Entrepreneurship capacity

2.3.4 Brain Drain stymying Innovation, Research and Entrepreneurship capacity 36. The hitherto weak ability of the economy to create sufficient numbers of jobs and low remuneration are driving the country’s brain drain to higher-income countries with labour shortages. Often, highly trained professionals are emigrating to countries where their skills attract higher pay. Ugandan youths trained up to degree/diploma level are exiting our country to take up employment requiring little or no skills. These emigrants have been trained at great economic expense to the country and the remittances do not fully compensate for the expense of their training. Besides, the country’s capacity for research, innovation, and entrepreneurship as well as skills to drive and sustain socio-economic transformation is constantly being compromised by emigration. Without opportunities at home, our homegrown talent will continue to exit in increasingly large numbers. This is precisely the talent needed to help create opportunities and drive the nation’s goals with regard to Vision 2040. 20 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 37. Uganda urgently needs to devise mechanisms to stop and then reverse the brain drain, especially in Science, Technology, Engineering and Mathematics (STEM). It is undesirable that the majority of the country’s graduates either find no employment in the country, are under-employed or are forced to supplement their incomes outside the public system. A comprehensive review of public sector remuneration and merit and competence- based recruitment structures are crucial in the public sector. Specifically, for highly trained professionals like medical doctors and specialized skills in the publicly owned enterprises in energy and oil. Uganda also needs to build greater opportunities for short working visits to its highly specialised professionals abroad.

2.3.5 — Biological threats from emerging diseases

2.3.5 Biological threats from emerging diseases 38. Uganda has faced a number of emerging diseases such as Ebola, Murbag, and COVID-19, which have had immense impact on the economy. In the first half of the year 2020, Uganda was hit by the COVID-19 pandemic caused by the coronavirus. This led to a partial lock down of the economy, which disrupted the supply chains and slowed down economic growth. The country therefore, needs to invest in building national capacity in biosecurity and disease surveillance system for early detection and mitigation of biothreats from emerging diseases. 39. Tourism in particular has suffered due to the global COVID-19 pandemic. Tourism was identified as an important and growing opportunity for Uganda to increase forex earnings and employment. However, it is vulnerable to global, regional and national shocks. For instance, travel restrictions due to COVID-19 pandemic has led to loss of tourism earnings. The country has already lost USD 400 million in the quarter ending June 2020 and is likely to lose 1.6 billion dollars in FY2020/21. Similarly, 600,000 Ugandans directly and indirectly employed in the sector are unemployed. These effects are likely to be felt in the short to medium term. This calls for innovative approaches to tourism to mitigate its vulnerability.

2.4 — Regional and International Development Obligations

2.4 Regional and International Development Obligations 40. NDPIII is cognizant of Uganda’s commitments in regional and international development obligations. Uganda is a signatory to the 2030 Agenda for Sustainable Development which consists of a set of 17 goals and attendant targets. The 2030 Agenda embodies the aspirations of a world that is more equal, more prosperous, more peaceful and just as well as mindful of the planet. Uganda adopted and localised these goals and targets and mainstreamed them into NDPII. In the period since the drafting of the NDPII, the East African Community and the African Union also finalized the development of regional development plans, namely the EAC Vision 2050 and Africa Agenda 2063. The NDPIII programmes incorporate the country’s regional and international development commitments and also address the thirteen (13) strategic bottlenecks to Africa’s socio- economic development as illustrated in Annexes 1 and 2 respectively. The bottlenecks have been integrated into the African Peer Review Mechanism (APRM). 21 NATIONAL PLANNING AUTHORITY

2.4.1 — Emerging issues

2.4.1 Emerging issues 41. The regional and global development environment remains favourable for fast- tracking growth. The country should therefore fully embrace the unfolding global opportunities as well as take cognizance of the development obligations. The major development opportunities include: strong regional and global demand for food and food products especially in Africa and Asia where export standards are much closer to ours, manufactured goods due to the expanding global middle class; new financing options for funding of development infrastructure to further improve competitiveness; consolidation of the African export market made possible with the ratification of the African Continental Free Trade Area (AfCFTA); increased global reach and use of ICT which makes markets easier to reach and services cheaper to access as well as new possibilities for more structured technology transfer and adoption. 42. In order to take full advantage of the opportunities referred to in (40), the country needs to: (i) Prioritize the massive production of food and food products, iron and steel for the regional construction market as well as production of light manufactured goods on an industrial scale to reap from economies of scale; (ii) Focus on creating the conditions and facilities for massive expansion of manufacturing in themed production zones with low transport and energy costs. Identify and support specific manufacturing clusters strategically located for agricultural production combined with value addition to other raw materials; (iii) Articulate a transparent and development-oriented policy framework for the minerals sector adhering to EITI standards and principles, to retain a higher portion of natural resource rents and to utilize the proceeds towards achieving economic diversification and structural transformation; (iv) Negotiate and institute mechanisms for an organized transfer and adoption of low cost, labour-intensive technology with China and India that are transiting from low technology/labour intensive manufacturing to high-tech; (v) Increase investment in tourism infrastructure and launch a massive marketing campaign for the ‘Pearl of Africa’ brand to increase the share of the tourism market; (vi) Make substantial investments in science, technology and innovation to take advantage of the growing sophistication of markets and global value chains; (vii) Stem the ‘brain drain’ and institute mechanisms for initiating and scaling-up reversal of brain drain; (viii) Invest significantly in an integrated and interoperable transport infrastructure to facilitate evacuation of goods from the production areas to collection and processing centres for export. The Northern Corridor transport infrastructure projects, road projects to the neighbouring countries of DRC and South Sudan as well as the Maritime Silk Road initiative would go a long way in furthering this initiative; 22 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 (ix) Support the private sector (particularly local SMEs) to develop capacity to drive the industrialization effort, increase exports, create jobs and increase local content; (x) Restructure, recapacitate and empower an incentivized bureaucracy to play the role it should play in a ‘development state’ model; (xi) Effect massive investment in the production of human capital with the appropriate skills and the right attitude to drive the industrialization effort. Implementation of the National Human Resource Plan developed as an attendant Plan to NDPIII would be a good start. (xii) Minimize and/or mitigate the risks that the country faces after opening up to the world, and these include cyber warfare, brain drain, climate change and a surge in refugee numbers due to regional conflicts. 23 NATIONAL PLANNING AUTHORITY CHAPTER 3: NATIONAL DEVELOPMENT OUTLOOK

3.1 — Macroeconomic Strategy

3.1 Macroeconomic Strategy 43. The overall goal of NDPIII macroeconomic management is to accelerate and sustain inclusive economic growth, while maintaining macroeconomic stability and debt sustainability. The macroeconomic strategy for the NDPIII therefore is to enhance the impact of public investment on growth through implementation of policies that foster efficiency in public investment, increase domestic revenue mobilization efforts and maintain price stability. In addition, Government will continue with measures to improve the external position through promoting a competitive exchange rate and building up foreign reserves to cushion the country against external shocks. 44. The Macroeconomic objectives underpinning the strategy include; (i) Poverty reduction from 21.4 percent to 18.5 percent; (ii) Achieving an accelerated economic growth rate at about 7 percent by FY2024/25; (iii) Increase in the stock of jobs by an annual average of about 512,000; (iv) Fostering price stability by maintaining core inflation within the target band of 5 percent +/- 3; (v) Keep a market determined foreign exchange rate; (vi) Ensure that an appropriate level of reserves in terms of months of imports of goods and services is achieved (EACtarget at least 4.5 months); (vii) Pursuing a prudent fiscal policy with the aim of supporting macroeconomic stability consistent with regional and domestic fiscal rules. This includes a ceiling on debt to GDP of 50 percent in present value terms and a gradual achievement of a fiscal deficit of 3percent by FY 2024/25; (viii) Domestic revenue average annual growth of 0.5 of GDP percentage points 45. The key selected economic and financial indicators are shown in Table 3.1. Table 3.1: Selected Economic and Financial Indicators, FY 2019/20 - 2024/25 19/20 20/21 21/22 22/23 23/24 24/25 (Annual percentage changes, unless otherwise indicated Output, prices and exchange rate Real GDP 3.07 4.51 5.99 6.38 7.00 7.20 Headline inflation (Period average) 2.92 5.63 5.78 4.93 4.70 5.00 Core inflation (period average) 3.09 5.60 4.88 4.91 4.69 5.00 Money and Credit Broad money (M3) 12.54 10.15 11.88 11.47 11.90 12.27 Credit to non-government sector 9.20 8.40 10.72 13.23 16.59 17.90 M3/GDP (percent) 17.42 17.80 17.53 17.59 17.52 17.46 (Percentage of GDP, unless otherwise indicated) 24 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 19/20 20/21 21/22 22/23 23/24 24/25 Central Government Budget Revenue and Grants 13.36 13.73 14.01 14.04 14.59 15.39 Of which: Grants 0.64 0.74 0.81 0.44 0.30 0.06 Tax revenue 11.62 11.96 12.28 12.68 13.23 13.72 Non Tax Revenue 1.10 1.03 0.93 0.92 0.87 0.89 Oil revenue - - - - 0.19 0.71 Expenditure 20.83 21.55 20.19 19.21 18.72 18.32 Recurrent 11.64 11.97 11.52 10.73 10.23 9.96 Development 8.22 8.73 8.67 8.49 8.49 8.36 Net lending and investment 0.98 0.85 - - - - Primary balance -4.84 -5.14 -3.46 -2.62 -1.65 -0.62 Overall balance -7.48 -7.82 -6.18 -5.17 -4.13 -2.93 Excluding grants -8.11 -8.55 -6.99 -5.61 -4.43 -3.00 Of which: Net Domestic Borrowing 1.85 1.99 1.60 1.31 0.92 0.31 Public debt* Public gross debt 41.40 45.71 47.80 48.66 48.40 46.71 External debt 27.76 31.00 32.60 33.54 33.92 33.06 Domestic debt 13.65 14.71 15.20 15.11 14.48 13.65 Interest payment to revenue 21.21 21.34 20.98 19.20 18.08 15.52 External sector Current account balance (including -6.98 -9.68 -6.47 -5.69 -4.94 -3.53 grants) Current account balance (excluding -8.92 -8.96 -8.19 -7.73 -6.41 -5.35 grants) Export (goods and services) 13.73 10.99 11.86 11.65 11.43 11.64 Imports (goods and services) 23.37 21.80 20.07 19.02 18.01 16.76 Gross international reserves In months of next year's total 4.11 3.30 3.53 3.90 4.45 4.61 imports Memorandum Items: GDP current market prices (UGX bn) Ushs. Bn 138,283 152,315 170,403 189,941 212,541 238,611 USD. Bn 36.89 39.65 43.34 47.30 51.91 57.42 GDP per capita (Nominal USD) 905 936 991 1,049 1,116 1,198 Population (million) 41.05 42.37 43.72 45.10 46.51 47.95 Source: MOFPED, using IMEM Model * The threshold for interest payment to revenue is 15%

3.2 — Economic Growth

3.2 Economic Growth

3.2.1 — Economic Growth Prospects for NDP III

3.2.1 Economic Growth Prospects for NDP III 46. The NDP III growth prospects are hinged on the assumption that all interventions and projects outlined will be efficiently implemented between FY 2020/21 – FY 2024/25. Real GDP growth is estimated to range between 4.5 to 7.2 percent during this period supported by continued productivity enhancement. To remedy the climate change 25 NATIONAL PLANNING AUTHORITY and COVID risk that subdued growth in NDPII, in NDPIII Government will augment efforts to limit rain-fed agriculture by extensively pursuing construction of mini-micro irrigation schemes and multi-purpose surface storage facilities/reservoirs in the NDP III period. Growth will also be supported by the good the global and regional economies prospects; improvement in macroeconomic environment; COVID response economic stimulus; recovery in private sector activity supported by the pick-up in private sector credit; and rising domestic demand as the COVID-19 pandemic effects fade out gradually. Table 3.2 shows sectoral contribution to GDP for the NDP III period. Table 3. 2: Contribution to growth by sector, FY 2018/19 - 2024/25 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Real GDP* 6.78 3.07 4.51 5.99 6.38 7.00 7.20 Agriculture, forestry and 1.96 0.90 1.31 1.72 1.81 1.97 2.01 fishing of which: Cash crops 0.17 0.08 0.11 0.15 0.16 0.17 0.18 Dairy farming 0.12 0.06 0.09 0.12 0.12 0.14 0.14 Food crops 1.09 0.51 0.74 0.98 1.04 1.13 1.16 Fishing 0.16 0.07 0.10 0.12 0.13 0.14 0.14 Livestock 0.13 0.06 0.09 0.12 0.13 0.14 0.14 Other 0.29 0.13 0.18 0.23 0.24 0.25 0.25 Industry 2.12 0.96 1.41 1.90 2.05 2.27 2.36 Of which: Agro - processing 0.77 0.35 0.52 0.70 0.75 0.83 0.86 Construction, cement and 0.55 0.25 0.36 0.49 0.54 0.61 0.63 lime Electricity and water 0.28 0.13 0.19 0.26 0.27 0.30 0.31 Mineral development 0.10 0.05 0.07 0.10 0.11 0.13 0.14 Other Manufacturing 0.42 0.19 0.27 0.36 0.38 0.41 0.42 Services 2.70 1.22 1.78 2.37 2.52 2.75 2.83 Of which: Transport services 0.43 0.19 0.26 0.35 0.37 0.40 0.41 Wholesale and retail trade 0.17 0.08 0.12 0.15 0.16 0.18 0.18 Telecommunications-ICT 0.25 0.12 0.18 0.24 0.25 0.27 0.28 Insurance 0.16 0.07 0.10 0.14 0.15 0.17 0.17 Financial services 0.19 0.08 0.12 0.16 0.17 0.19 0.20 Health 0.10 0.04 0.07 0.09 0.09 0.10 0.11 Public Administration 0.22 0.11 0.15 0.20 0.21 0.22 0.22 Other services 1.19 0.53 0.79 1.04 1.11 1.22 1.25 *Results based on the structure of the 2016/17 Social Accounting Matrix (SAM) Source: MOFPED, using IMEM Model 47. The economy is expected to remain resilient throughout the NDPIII period in spite of the COVID-19 global pandemic. The economy is projected to slow down from 6.8 percent in FY 2018/19 to 3.1 percent in FY 2019/20 largely due to the triple effects of COVID-19 pandemic, floods and locusts’ invasion before rebounding to its potential of 7.0 percent in FY2023/24. Government has adopted a raft of measures to accelerate economic recoveryand these include both short- and medium-term interventions of scaling up health and socialprotection emergency funds to contain the spread of COVID-19, availing an economicstimulus for corporations and SMEs, supporting import substitution and export promotion 26 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 and extending affordable credit to household enterprises operating within the subsistence economy among others. These short and medium-term interventions are expected to expedite the recovery of the economy from the negative effects posed by COVID-19 pandemic, floods and locusts’ invasion. Thus, growth is projected to increase to 4.5 percent in FY 2020/21 and 6.0 percent in FY 2021/22 and peak at 7.2 percent in FY 2024/25. Over the NDP III period, economic growth is projected to average at 6.2 percent as shown in Table 3.2 48. Following the above growth prospects, per capita income is projected to improve from 882USD in FY 2018/19 to 1,198 USD in FY 2024/25, hence achieving middle-income status within the NDP III period. The projected trend of per-capita income and real GDP is shown in Figure 3.1. Figure 3.1: GDP per capita and real economic growth Source: MOFPED, using IMEM Model

3.2.2 — Growth and Job Creation Strategy

3.2.2 Growth and Job Creation Strategy 49. The Economic Growth Strategy that underpins the NDP III is built on the need for rapid industrialization of the Ugandan economy linked to high productivity and production in agriculture; while nurturing the potential of the ICT, minerals, oil and gas sectors. The growth of these sectors is expected to provide gainful employment to the majority of Ugandans though promoting public investment in high employment intensity value chains. The Economic Growth Strategy focuses on five key objectives: (i) Expanding the Industrial Base of the Economy; (ii) Consolidate and increase the stock and quality of productive infrastructure; (iii) Enhancing Productivity especially in the Agricultural sector; (iv) Exploiting Natural Resource Endowments with Environmental Protection in mind; and (v) Supporting private sector development through providing affordable financing for Production and Business. 27 NATIONAL PLANNING AUTHORITY 50. Sustained and diversified economic growth is essential for creating the foundation for gainful employment. The rate of economic growth sets the absolute ceiling within which growth in employment and growth in labour productivity can take place. 51. Uganda’s impressive macroeconomic performance over the last 20 years has not had a significant impact on the structure of the labour market. Whereas the economy has grown at an average of 5.4 percent over the last 10 years it has not created enough gainful jobs. The working age population is growing faster than the economic growth. The working age population grew from 16.5 million to 19.1 million between 2012/13 and 2016/17. As of FY2016/17, the working population was 15 million persons but with total employment estimated at 9.1 million. Currently a total of 700,000 people enters the labour market every year of which only about 238,000 (34 percent) are absorbed. Moreover, employment has expanded in lower-productivity activities such as subsistence agriculture and petty trade as well as the informal sector. 52. The NDPIII job creation strategy focuses on expanding and diversifying economic growth while maintaining macro-economic stability in order to create increased demand for labour. In particular, the plan aims to; increase investment in productive areas, promote Foreign Direct Investment (FDI) and expand exports with a focus on supporting small and medium enterprises (SMEs) to access export markets while supporting small domestic firms to grow to small and then large firms. Further, the job strategy will focus on developing an economy that attracts and nurtures larger domestic firms, attract more foreign direct investment to Uganda, encourage trade integration, leverage urbanization for better jobs, prioritizing regional investment, strengthen Local Economic Development, accelerate the transformation of agriculture from subsistence to commercial production in particular by connecting smallholders with value-chains. The plan also priorities the need to streamline and reform youth and women employment programs to help young Ugandans find employment. 53. The overall growth and job creation strategy highlighted above and detailed in the specific programme chapters 5-22 will contribute to the creation of about 2.5 million jobs over the course of NDPIII period. The new jobs corresponding to the growth and jobs strategy over the entire NDPIII period are about 2.5 million with an annual average of about 512,000 jobs. The highest number of jobs (1.313 million jobs) are expected to come from the services sector with the Trade subsector contributing the largest proportion. Agriculture is expected to be the second highest contributor to jobs, followed by industry whose largest share of jobs is expected to arise from manufacturing (see Table 3.3). Table 3.3: The Stock of New Jobs created 2021-24/25 Industry of employment 2020/21 2021/22 2022/23 2023/24 2024/25 Agriculture, forestry and fishing 143,926 149,561 158,796 168,887 175,241 Industry 61,563 72,295 79,127 88,125 94,969 Manufacturing 38,875 45,458 49,790 55,471 59,782 Construction 22,688 26,837 29,337 32,654 35,187 Services 170,378 242,481 267,836 304,912 328,245 28 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 2020/21 2021/22 2022/23 2023/24 2024/25 Trade 102,688 145,838 162,216 185,797 200,640 Transport and storage 6,651 12,741 14,675 17,521 18,718 Education 17,682 20,810 22,573 24,947 26,964 Other service activities 23,304 33,912 36,750 41,198 44,033 Hotels , restaurant eating places 20,053 29,180 31,622 35,449 37,889 Other industrial activities 36,721 12,925 9,181 1,301 - 4,263 Total 412,588 477,262 514,939 563,225 594,192

3.3 — Fiscal Strategy

3.3 Fiscal Strategy 54. Government will continue to pursue fiscal policy that maintains macroeconomic stability and supports inclusive job-rich growth, while preserving debt sustainability. To achieve these objectives, Government’s fiscal strategy will focus on; (i) Continued investment in public infrastructure to accelerate inclusive growth while enhancing efficiency in public investment through the implementation of the Public Investment Management Policy and Strategy. (ii) Increased revenue mobilisation particularly through the implementation of the Domestic Revenue Mobilisation Strategy (DRMS), aimed at reducing debt reliance and keep debt at sustainable levels 55. Despite the need to bridge the infrastructure gap and stimulate the economy in light of COVID-19 impact, the fiscal strategy will ensure that the fiscal deficit remains with in sustainable levels over the medium to long-term. The NDPIII macroeconomic framework adopts a fiscal deficit path where the debt to GDP ratio remains below 50 percent, the ratio of interest payments to domestic revenue remains at less than 15 percent and the EAC convergence criteria is achieved in FY2024/25.The fiscal deficit will gradually decline to below 3 percent of GDP by FY2024/25, while expenditure to GDP will average 19.6 percent during the planned period. Domestic revenue to GDP is projected to open at 12.9percent of GDP in FY2020/21 and to close at 15.3 percent in FY2024/25. Therefore, Domestic revenue to GDP is projected to increase by 0.52 percentage points per fiscal year.The fiscal deficit path over the NDPIII period is shown in Figure 3.2.

3.3.1 — Revenue Strategy

3.3.1 Revenue Strategy 56. The revenue strategy over the NDPIII period will focus on improving compliance and efficiency in tax revenue collections through implementation of the Domestic Revenue Mobilization Strategy (DRMS). Emphasis will be given to strengthening administrative efforts so as to narrow the gap between current and potential revenue performance. Administrative efforts will be achieved through providing better training and resources to URA to modernize and expand ICT capability and other necessary tools. This will foster higher compliance. 57. Overall, these developments will result into total revenues and grants increasing from 13.7 percent to 15.4 percent of GDP between FY 2020/21 and FY 2024/25. An increase in 29 NATIONAL PLANNING AUTHORITY revenue would reduce the country’s deficit and consequently her reliance on debt thus keeping debt at sustainable levels. Figure 3. 2:Overall fiscal deficit (percentage of GDP) Source: MOFPED, using IMEM Model

3.3.2 — Expenditure Strategy

3.3.2 Expenditure Strategy 58. The NDPIII expenditure strategy will focus on continued investment in public infrastructure but also balance it with Social sector spending. This is required to further bridge the infrastructure gap but also invest in human resources required for production enhancement and accelerate inclusive growth. The details of this strategy are articulated in programme chapters 5-22 in the follow up sections. To reap the full return on the public infrastructure and social sector investments, strategy will focus on enhancing efficiency in public investments through adherence to the PFMA and implementation of the PIMs policy and strategy. 59. The key projects to spur productivity and thus economic growth include; improving transport infrastructure including road, air and railway; construction of refinery and Crude Oil pipeline; power production and distribution; construction of industrial parks to ease cost of doing business; provision of water for production like irrigation schemes and valley dams; agricultural post-harvest handling and marketing and more. Most spending on infrastructure is expected in FY 2021/22, driven by construction of the oil related infrastructure.

3.3.3 — Deficit Financing and Debt Sustainability

3.3.3 Deficit Financing and Debt Sustainability 60. Revenue growth, while showing improvements prior to COVID-19, still remains subdued and cannot yield all the required financial resources to meet the required development needs. Spending will be frontloaded during the NDPIII period with the deficit averaging 5.3 percent over the NDP III period and peaking at 7.8 percent in FY 2020/21, before narrowing to a modest 2.9 percent in FY 2024/25. The primary deficit will 30 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 average 2.7 percent over the period, reducing from a peak of 5.2 percent in FY2020/21 and settling at 0.6percent in FY 2024/25. 61. A higher debt stock comes with a greater risk of debt distress, and its macroeconomic consequences. To this end, the Government remains committed to carefully analysing its debt sustainability before contracting any new debt. Borrowing will be prioritised for those projects with higher economic returns; and the operationalisation of the newly developed Project Implementation Strategy is also expected to greatly improve efficiency in public investment. Contingent liabilities like debt of state-owned enterprises are a potential risk to debt sustainability, thus to better manage this risk, government is developing guidelines for borrowing by state-owned enterprises, and will continuously monitor these liabilities. This will allow the ambitions of NDPIII to be realised without compromising macroeconomic stability. Table 3. 4: Sources of financing - Percentage of GDP 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Overall balance -4.91 -7.48 -7.82 -6.18 -5.17 -4.13 -2.93 Over balance, excluding -5.82 -8.11 -8.55 -6.99 -5.61 -4.43 -3.00 grants Primary balance -2.98 -4.84 -5.14 -3.46 -2.62 -1.65 -0.62 Financing 4.91 7.48 7.82 6.18 5.17 4.13 2.93 External financing 2.81 4.86 5.48 4.12 3.70 3.35 2.76 Disbursement 3.72 5.40 6.29 5.20 5.22 4.89 4.48 Budget support 0.14 2.73 2.70 2.04 1.50 0.94 0.00 Concessional project loans 2.39 1.70 1.95 1.75 1.50 1.49 1.46 Non-concessional 1.19 0.96 1.64 1.40 2.22 2.45 3.02 borrowing Amortisation (-) -0.91 -0.53 -0.81 -1.07 -1.52 -1.54 -1.72 Domestic financing (net) 0.92 0.91 1.00 1.03 0.74 0.49 0.17 Banking financing 0.96 1.30 1.33 0.81 0.66 0.27 0.01 Bank of Uganda -3.74 -4.19 -4.59 -4.31 -3.76 -3.65 -3.63 Commercial banks 4.69 5.49 5.92 5.12 4.42 3.91 3.65 Non-Bank financing 0.90 0.92 1.00 0.80 0.65 0.46 0.16 Source: MOFPED, using IMEM Model 62. External financing will be the main source of financing for the deficit over the NDPIII period (Table 3.4). Both external and domestic financing will decrease over the course of NDPIII as the major infrastructure projects gradually come to a completion. External financing will average 3.8 percent of GDP over the period whilst domestic financing will average not more than 1.0 percent of GDP, with the view of avoiding crowding out of the private sector. Initially most external financing will come from concessional project loans; however, this will taper down from 1.9 percent of GDP in FY 2020/21 to 1.5 percent of GDP in FY 2024/25. In contrast, non-concessional borrowing is expected to increase from 1.6 percent of GDP in FY 2020/21, peaking at 3.1 percent in FY 2024/25. Budget support is a small component of overall financing, averaging 1.4 percent of GDP over the NDP III period. 63. Government will implement the integrated national financing framework (INFF) and strategy that takes cognizance of emerging innovative financing options for both public and private sector to deliver NDPIII goals. 31 NATIONAL PLANNING AUTHORITY External Financing 64. Concessional loans from multilateral creditors will continue to be an important source of financing for NDPIII, averaging at 1.6 percent of GDP over the period. These loans are characterised by long maturity periods and low interest rates; and will therefore continue to be maximally tapped especially for long term investments. Non-concessional external borrowing will also be required given the ambition of the NDPIII, and because concessional borrowing is not always available for all projects. Non-concessional borrowing is projected to average 2.2 percent of GDP over the NDPIII period. Government will continue to ensure that for projects where concessional loans cannot be secured, semi- concessional loans are prioritised over non-concessional borrowing and the terms negotiated are at the least cost and risk as possible. Domestic Financing 65. Domestic financing will be used carefully to avoid crowding out the private sector, and so constraining private investment and growth. Conversant of this, domestic financing will be a relatively small net source of financing, averaging not more than 1.0 percent of GDP over the NDPIII period. Monetary Sector 66. The BOU’s monetary policy stance will continue to be geared to ensuring price stability and supporting economic activity over the NDP III period. The inflation outlook is expected to remain within the monetary policy target. The major risks to the outlook relate to increased aggregate demand - due to increased economic activity in the Oil and Gas sector. However, the objective of monetary policy over the NDPIII period will be to maintain annual core inflation within the target band of 5 percent +/-3 (Table 3.5). Table 3. 5: Monetary Accounts, FY 2018/19 - FY 2024/25 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Depository Corporations Survey Net foreign assets 13,871 14,418 16,289 18,001 19,486 21,127 21,402 Bank of Uganda 13,407 12,940 11,012 12,540 14,603 17,338 18,613 Commercial banks 471 1,872 1,418 582 -256 -1,311 -2,331 Net domestic assets 10,533 13,439 15,925 19,296 24,226 30,128 38,426 Claims on central government (net) 3,967 5,340 6,381 8,417 10,281 11,713 12,829 Claims on the private sector 15,036 16,420 17,798 19,706 22,312 26,014 30,671 Other items (net) -8,932 -9,562 -6,870 -7,948 -9,818 -12,199 -13,116 Money and quasi-money (M3) 24,091 27,112 29,864 33,410 37,241 41,672 46,783 Foreign exchange deposits 7,126 7,998 8,780 9,789 10,874 12,126 13,614 Bank of Uganda Net foreign assets 13,407 12,940 11,012 12,540 14,603 17,338 18,613 Net domestic assets -6,638 -5,433 -2,790 -3,401 -4,451 -6,017 -5,943 Claims on central government (net) -2,077 -2,277 -2,759 -2,759 -2,759 -2,759 -2,759 Claims on commercial banks 581 2,225 5,596 5,229 4,456 3,184 3,568 Other items (net) -2,747 -2,989 -3,239 -3,486 -3,767 -4,064 -4,378 Base money 6,756 7,492 8,192 9,095 10,094 11,251 12,589 32 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Currency in circulation 4,592 4,735 4,713 5,625 6,233 6,885 7,852 Commercial bank deposits 14,621 16,594 18,701 20,081 22,661 25,028 28,100 Other Depository Corporations Net foreign assets 471 1,872 1,418 582 -256 -1,311 -2,331 Net domestic assets 19,707 21,270 24,110 28,006 32,186 37,123 42,656 o/w Claims on central government (net) 6,044 7,616 9,140 11,176 13,040 14,472 15,587 Claims on private sector 14,975 16,356 17,731 19,635 22,238 25,937 30,590 Deposit liabilities to the non-bank public 20,178 22,758 25,125 28,196 31,537 35,416 39,932 Shilling deposits 12,955 14,663 16,248 18,310 20,566 23,193 26,221 Foreign exchange accounts 7,126 7,998 8,780 9,789 10,874 12,126 13,614 Memorandum items: (Annual percentage change) Base money 8.9 10.9 9.5 11.2 11.1 11.5 11.9 M3 7.2 12.5 10.1 11.9 11.5 11.9 12.3 Credit to the private sector 12.7 9.2 8.4 10.7 13.2 16.6 17.9 Memorandum items: Base money-to-GDP ratio (percent) 5.2 5.4 5.4 5.4 5.3 5.3 5.3 M3-to-GDP ratio (percent) 17.2 17.4 17.8 17.5 17.6 17.5 17.5 Credit to the private sector (percent of 10.2 10.9 10.8 10.4 10.4 10.5 10.9 GDP) Gross reserves of BOU (US$ millions) 3,263 2,959 2,391 2,650 3,041 3,569 3,809 Source: Bank of Uganda

3.4.1 — Foreign exchange market

3.4.1 Foreign exchange market 67. Over the NDP III period, significant financing for infrastructure investment will be sourced externally. Although a significant portion of the external financing is likely to be spent on project imports, there is still a portion that will be spent in the domestic economy. Additionally, oil and gas sector related activities will add to increased foreign currency inflows into the domestic economy. This is likely to put appreciation pressure on the shilling over the medium term. However, government will continue to promote a competitive exchange rate through prudent management of foreign exchange reserves. This will cushion the economy against the excessive exchange rate volatilities

3.4.2 — Domestic liquidity and private sector credit

3.4.2 Domestic liquidity and private sector credit 68. Domestic liquidity will not be significantly impacted on by public investment because of the high import content of the infrastructure projects to be undertaken. However, a higher fiscal deficit –albeit steadily declining over the period, to be largely financed by external borrowing will lead to liquidity injection that must be prudently managed to maintain low and stable inflation without affecting the level of private sector credit. 69. Over the NDPIII period, the level of domestic borrowing to finance the budget will be maintained at an average of about 1.2percent of GDP to minimise crowding out the private sector. This is expected to increase private sector credit growth from NDPII annual average of 10 percent to NDPIII annual average of 13.4 percent. 33 NATIONAL PLANNING AUTHORITY Financial Sector Development 70. Government will continue to develop the financial sector and its infrastructure in an effort to catalyse the mobilization of domestic savings and investments. To that end, and in light of the country’s Financial Sector Development Strategy (FSDS) four strategic interventions will be implemented, namely: (i) Increasing access to and use of finance, to be able to channel available resources into formal platforms, priority actions will target offering a wide range of products and services through expanded delivery channels including Digital Financial Services (DFS), Credit, Non-Life and micro insurance, micro pensions, agriculture finance, agent banking among others. In addition, financial literacy programmes with a particular emphasis to digital finance is critical in accelerating use and access to formal finance. (ii) Increasing access to long-term finance, as a way of mobilizing savings and channelling them to areas where they are most needed, the capital markets infrastructure will be developed. This will also be complimented with efforts of expanding retirement benefits, increasing life insurance penetration, improving provision of long-term finance by development finance institutions among others. (iii)Strengthening innovation and supporting infrastructure by supporting and fostering innovations in the financial sector as well as the financial markets infrastructure development. (iv)Strengthening financial stability and integrity. This will involve strengthening the regulatory and supervisory capacity of the various players in the financial sector in order to enhance financial consumer protection, prevent and mitigate the financing of terrorism as well as countering money laundering vices that may jeopardize the country’s financial systems. External Sector Developments 71. The overall current account balance (including grants) is set to improve from a deficit of 6.1 percent of GDP in FY 2020/21 to 3.9 percent in FY 2024/25. The improvement is on account of relatively larger drop in imports to GDP compared to growth in exports to GDP. There is potential for exports growth especially for processed foods due to planned government’s interventions in agro-processing. Exports (goods and services) are projected to increase from USD 4,359 million in FY2020/21 to USD 6,686million in FY 2024/25. On the other hand, imports (goods and services) are expected to increase from USD 8,645 million in FY2020/21 to USD 9,622million in FY 2024/25. The current account will be partly financed by increase in foreign direct investments and government foreign borrowing. The strategy is envisaged to yield a healthy level of reserves cover equivalent to an annual average of 4 months of imports of goods and services (Annex 7). Trade Developments 72. Uganda will pursue an ambitious trade strategy that is consistent with the existing trading agreements and World Trade Organisation (WTO) provisions. This will involve both export promotion and import substitution. The country will strengthen its capacity to locally and competitively produce products that were previously imported consistent with the World Trade Organisation (WTO), EAC, COMESA, and AfCFTA 34 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 provisions for international trade. It is therefore an opportune moment for the country to produce for exporting to the EAC, COMESA, AfCFTA and other markets. PART II: STRATEGIC FOCUS, NATIONAL DEVELOPMENT PROGRAMMES AND FINANCING CHAPTER 4: STRATEGIC DIRECTION

4.1 — Goal

4.1 Goal 73. The goal of NDPIII is to Increase Average Household Incomes and Improve the Quality of Life of Ugandans. Achievement of this goal assumes that sustained peace, security, good governance, and a stable macro-economic environment will continue to prevail and that these will provide the basic anchor for economic growth and development under this plan. NDPIII aims to pursue achievement of these goals under the overall theme of Sustainable Industrialization for inclusive growth, employment and sustainable wealth creation.

4.2 — Strategic Objectives

4.2 Strategic Objectives 74 NDPIII has five Strategic Objectives. In pursuit of the industrialization agenda, the NDPIII’s objectives are based on the country’s comparative advantages that lie in its abundant natural resources and young population, the achievements registered so far from investments in productive infrastructure as well as the partnerships forged between the public and private sectors. These objectives meet the purpose of accelerating growth of the economy, transforming the lives of the people and strengthening the country’s regional and international competitiveness. The five objectives are: (i) Enhance value addition in key growth opportunities; (ii) Strengthen the private sector capacity to drive growth and create jobs; (iii) Consolidate and increase the stock and quality of productive infrastructure; (iv) Enhance the productivity and social wellbeing of the population; and (v) Strengthen the role of the state in guiding and facilitating development. 75 These strategic objectives will provide the framework for streamlining and directing government, private sector, civil society and development partners’ investments towards: (i) Increased agricultural production/productivity and agro-processing, mineral beneficiation and mineral-led industrialization, oil refining, digitalisation, and labour- intensive light manufacturing (including cottage industries); (ii) Sequential and coordinated infrastructure investments in energy, roads, water, air, rail, industrial parks, and mechanized irrigation schemes to support increased production/productivity for export expansion and the production of goods that are otherwise imported; (iii) Increased generation of more skilled, better motivated and healthier workforce for all sectors of the economy, but particularly for industrial sector as well as a modernized agricultural sector; and 35 NATIONAL PLANNING AUTHORITY (iv) A strengthened private sector that is able to drive growth and investment in collabouration with the state.

4.3 — Theory of change

4.3 Theory of change 76 The theory of change for this plan is based on the achievement of higher household incomes and improved well-being through resource led sustainable industrialization. Resource led sustainable industrialization will address the challenges of low value addition, low gainful employment, low technology importation and uptake. The expansion of Uganda’s manufacturing industry and the steps towards industrialization provide unmatched potential for accelerated growth by adding value to raw materials that are produced locally, rather than being exported unprocessed. This processing will create better and more sustainable jobs and will eventually lead to higher household incomes and thus a better quality of life for our citizens by deepening the national value chains. Figure 4. 1: NDPIII Theory of Change Source: National Planning Authority, 2020 77 Under this plan, Government will play a more definitive role in addressing the challenges that are manifest due to the failure or absence of incentives to enable the market operate efficiently. In other words, the state will play a developmental role in order to achieve Vision 2040 and not simply rely on market mechanisms, particularly where they are failing.

4.4 — Key Development Results

4.4 Key Development Results 78 At the strategic/macro level, tracking progress made during the implementation of this plan will be done through a set of NDPIII strategic level objectives indicators, as defined in table 4.1. These indicators cover all major areas of interest under the five strategic 36 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 objectives. Targets to be achieved at the end of the five-year period have been set within the context of Vision 2040 targets as well as the FY 2017/2018 baseline. Table 4.1: NDPIII Key Strategic Results Category Key Indicators Baseline NDPIII Targets Result Areas FY FY FY FY FY FY (KRA) 2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 Goal: Househol Income per Capita (USD) 864 936 991 1,049 1,116 1,198 Increased d incomes Real GDP growth rate 6.2 4.51 5.99 6.38 7.00 7.20 household Population below the 21.4 25.39 21.4 20.55 19.57 18.50 incomes and poverty line (percent) improved Quality of life Income Inequality (Gini 0.41 ͲǤͶͻ ͲǤͶ͵ ͲǤͶʹ ͲǤ͵ͺ ͲǤ͵͹ coefficient) Gender Inequality Index 0.523 0.520 0.515 0.510 0.505 0.50 (GII) Share of working 79.0 80.6 82.2 83.8 85.5 87.2 population (percent) Share of national labour 47.5 48.5 49.4 50.4 51.4 52.4 force employed less subsistence (percent) Quality of Human Development 0.52 0.56 0.58 0.60 0.62 0.64 life Index Score Population growth rate 3.0 3.0 3.0 2.8 2.7 2.5 (percent) Homicide rate per 100,000 11 10.54 10.08 9.62 9.16 8.7 people Objective 1: Agro and Average monthly nominal 416,000 401,667 482,297 548,408 587,840 632,044 Enhance value Mineral household Income (Ugx) addition in Key based Sectoral Agricultu 22.9 21.22 20.88 20.54 20.22 19.89 Growth industriali contribution re Opportunities zation to GDP Industry 26.5 27.55 27.81 28.05 28.31 28.56 (percent) Services 43.4 44.18 45.07 45.97 46.89 47.8 Manufactured exports as a 12.3 13.53 14.88 16.37 18.01 19.81 percent of total exports High technology exports 3.54 3.89 4.28 4.71 5.18 5.70 (percent of manufactured exports)1 Share of intermediate 18.9 22.14 22.97 23.8 24.6 25.5 goods (inputs) in total imports (percent) Tourism Foreign exchange earnings 1.45 1.5840 1.631 1.689 1.774 1.862 from Tourism (USD billion) Share of Tourism to GDP 7.3 7.8 7.9 8.0 8.1 8.5 (percent) ICT Contribution of ICT to 2.0 2.67 2.89 3.13 3.40 3.69 GDP Land Percentage of titled land 21 24 29 32 35 40 Objective 2: Private Saving as a percent of GDP 16 16.35 16.79 17.36 18.57 19.91 Strengthen sector Foreign Direct Investment 2.96 3.069 3.176 3.388 3.63 4.15 private sector growth (percent of GDP) capacity to Gross Capital Formation as 24.2 26.44 26.76 27.08 27.41 27.7 drive growth and create jobs percent of GDP Private Annual % 11.2 8.4 12.9 13.5 16.0 17.4 sector credit change % of GDP 11.7 10.9 10.5 10.7 10.8 11.2 Exports Merchandi as 12.7 14.33 14.83 15.35 15.89 16.45 percent se of GDP Goods & 26.24 28.67 29.53 30.41 31.3 32.26 services Youth unemployment rate 13.3 12.2 11.6 11.0 10.5 9.7 (percent) 1 High-technology exports are products with high R&D intensity, such as in aerospace, computers, pharmaceuticals, scientific instruments, and electrical machinery. 37 NATIONAL PLANNING AUTHORITY Category Key Indicators Baseline NDPIII Targets Result Areas FY FY FY FY FY FY (KRA) 2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 Net annual no. of jobs 424,125 created 413,920 479,600 514,962 563,177 594,153 Objective 3: Energy Energy generation capacity 984 1,884 1990.4 2493.6 2996.8 3,500 Consolidate & (MW) increase stock Households with access to 21 40 45 50 55 60 and quality of electricity (percent) Productive Cost of Residential 23 19.4 15.8 12.2 8.6 5 Infrastructure electric Industrial 9.8 8 7 6.7 5.5 5 ity (large) (USD Industrial 8 7 6.5 6.3 6.0 5 cents) (Extra-large) Commercial 17 14.6 12.2 9.8 7.4 5 Road Percent of paved roads to 21.1 27 30 32 34 36 (7500) total national road network Travel time within GKMA 4.14 3.98 3.86 3.74 3.62 3.5 (min/km) Freight transportation 0.77 0.736 0.702 0.668 0.634 0.60 costs (per ton per km) from coast to Kampala - USD Ψ ͸ͳ 64.8 68.6 72.4 76.2 ͺͲ Railway Proportion of freight cargo 3.5 7.8 11.2 14 16.2 25 by rail (percent) Travel No of Days - 19 17 15 13 13 10 Time on Mombasa - Railway Kampala network Ǧ ʹͲ ʹͲ ͳͻ ͳ͹ ͳͷ ͳͷ Ǧ Air Volume of international air 1.700 1.763 1.939 2.133 2.347 2.581 passenger traffic (Mn) Volume of domestic air 22,301 28,152 30,967 34,064 37,470 41,217 passenger traffic Freight Cargo Exported 39,594 42,166 44,274 53,129 63,755 76,506 Traffic Imported 22,499 21,204 22,264 23,377 25,715 28,286 (tones) Water Freight Traffic on Lake 45,338 42,723 46,996 70,494 84,592 94,321 transport Victoria (tons) ICT Proportion of area covered 41 50.8 60.6 70.4 80.2 90 by broad band services Internet penetration rate 25 30 35 43 46 50 (internet users per 100 people) Unit cost of internet (USD) 237 210.6 177.2 143.8 110.4 70 Water for Water usage (m3 per 30.27 41.82 42.9 44.28 51.06 59.1 productio capita) n Cumulative WfP Storage 39.32 54.32 55.72 57.52 66.32 76.82 capacity (million m3) Objective 4: Labour Labour Agricultur 2,212 2,527 2,656 2,757 2,919 3,114 Enhance the productiv productivity e productivity ity and (GDP per Industry 7,281 8,162 8,446 8,622 8,971 9,413 and social Employm worker - Services 3,654 3,925 4,063 4,135 4,276 4,456 wellbeing of the ent USD) population Labour Force Participation 52.3 56 59.9 64.1 68.6 73.4 Rate (LFPR) Employment Population 47.5 51.3 55.4 59.8 64.6 69.8 Ratio Health Life expectancy at birth 63.3 64.6 66.0 67.02 68.7 70 (years) Infant Mortality Rate/1000 43 41.2 39.4 37.6 35.8 34 Maternal Mortality 336 311 286 261 236 211 Ratio/100,000 Neonatal Mortality Rate 27 24 22 21 20 19 (per 1,000) Total Fertility Rate 5.4 5.0 4.9 4.8 4.6 4.5 U5 Mortality Ratio/1000 64 42 39 35 33 30 Primary to Total 61 65 68 71 74 79 Education secondary 38 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Category Key Indicators Baseline NDPIII Targets Result Areas FY FY FY FY FY FY (KRA) 2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 school transition rate Survival Primary 38 40 41 45 50 55 rates, percent Secondar 77 79 82 86 90 95 y Ratio of STEI/ STEM 2:5 2:5 3:5 3:5 3:5 3:5 graduates to Humanities Quality adjusted years of 4.5 4.6 5.0 5.3 6.0 7.0 schooling 50 54 58 62 66 70 ʹǡΨ Literacy rate 73.5 74.1 75.3 76.9 78.4 80.0 Proportion of the 40.9 43 45.1 50 55 60.9 population participating in sports and physical exercises Employers satisfied with 40 44 48.4 52.6 58 65 the TVET training (percent) Energy Electricity consumption 100 150 200 300 400 578 per capita (Kwh) Forest cover (percent of 12.4 12.5 12.8 13.1 14.1 15 total land area) Water and Wetland cover (percent) 8.9 9.08 9.20 9.32 9.45 9.57 Environm Safe water Rural 73 75.4 77.8 80.3 82.6 85 ent coverage Urban 74 79.2 84.4 89.6 94.8 100 (percent) Sanitation coverage 19 23 28 32 37 45 (Improved toilet) Hygiene (Hand washing) 34 36 38 42 46 50 Social Proportion of population 5.0 7.5 10.0 12.5 15.0 20 Protectio accessing social insurance, n percent Coverage Health insurance 2 7.5 10 15 20 25 (percent) Percent population 0.5 0.7 2.5 3.0 6.5 8.0 receiving direct income support Proportion of eligible N/A 5.0 7.5 10.0 12.5 15.0 population with access to social care services, percent Extent of hunger in the population 40 36 32 28 24 20 (percent) Stunted children U5 (percent) 29 27 25 23 21 19 Objective 5: Tax Revenue to GDP ratio (percent) 12.58 11.96 12.28 12.68 13.23 13.72 Strengthen the Public resources allocated to Local 12.25 18.38 22.05 24.26 29.11 30 role of the State Government (percent) in development Cost of electricity for all processing and 8 7 5 5 5 5 manufacturing enterprises (USD cents)

4.5 — Development Approach

4.5 Development Approach 79 The development approach will focus on the following: (i) Enhanced role of the state to drive growth; (ii) Programme based approach to strengthen alignment of plans, budgets, and implementation at the macro, sector and local government level and focus on results; (iii) Regional Approach to Planning and Implementation to address area specific priorities and inequities in growth and house-hold incomes; (iv) Area based commodity planning to improve productivity and value addition to area commodities with a competitive advantage; (v) Integrated Human Resource Development Planning Approach to address the human resource required for implementation of the Plan; and (vi) Human Rights Based 2 Basic Requirements and Minimum Standards (BRMS) 39 NATIONAL PLANNING AUTHORITY Approach (HRBA) to planning, budgeting and implementation to ensure inclusive sustainable development. These are detailed below.

4.5.1 — Enhanced role of the state

4.5.1 Enhanced role of the state 80 The role of the state will be enhanced in areas where the market forces do not yield desired outcomes. The Constitution of the Republic of Uganda (1995) defines the “Role of the State in Development” as follows: The State shall stimulate agricultural, industrial, technological and scientific development by adopting appropriate policies and the enactment of enabling legislation”. 81 Until now, the role of the state in development has been limited due to, initially, weak capacity of government (financial and technical) but, later on, adoption of the liberalization policies. Consequently, government divested itself from the ownership of many strategic but publicly owned enterprises and corporations. However, economic history (and Uganda’s own experience in the energy sector) has shown that the private sector is not always able to efficiently allocate resources within the context of a country’s long-term growth prospects. In sectors like energy or transport, the state is more ideally suited to invest, as it can invest for the long term and is not seeking immediate short-term gains. The state can afford longer periods of capital recovery with minimal profits. Under this plan, government will invest directly or in partnership with the private sector (under PPP arrangements) in selected strategic sectors, particularly energy, transport infrastructure, specialized health and education institutions to compensate for market failures and develop strategic competitive advantages. It will also mean protecting our nascent industries in a bid to industrialize. 82 Government investment will diversify Uganda’s growth corridors by developing two new growth corridors. Uganda’s economic growth mainly generated by enterprise growth and improvements in infrastructure along a southern corridor which follows along the Malaba-Kampala-Katuna highway. As a result, the sub-regions in this corridor have the lowest share of households engaged in subsistence agriculture with majority of product markets being all agro-based in coffee, tea and dairy. These sub regions also have the highest share of households below the national poverty line and majority of households in middle income status (Kampala-Buganda-Ankole). Under the NDPIII, government will focus on development of two additional corridors i.e the Eastern Corridor and the Albertine Corridor thereby forming a growth triangle premised on regional growth of urbanised zones and corridors based on agriculture and natural resources clusters (Map 4.1). This growth triangle will be anchored around three Manufacturing Hubs (Gulu; Mbarara and Mbale) that are each reinforced by a number of primary production centres located in the surrounding sub-regions. The Eastern growth corridor will follow the current Meter Gauge Railway line that runs across Bukedi- Bugisu-Teso-Lango-Acholi sub-regions (with a spur to West Nile and Karamoja) while the Albertine growth corridor will run across Kigezi-Toro-Bunyoro sub-regions hence connecting to Kabale with Kitgum through Gulu. The growth triangle will be utilised to guide the extension of utilities and transport networks to these sub-regions. They will also support tourism development especially the Eastern and the Albertine loops. Furthermore, the corridors 40 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 are also targeted at connectivity with neighbouring countries leading directly to Kenya, Tanzania, Rwanda, The D.R.C and South Sudan thereby improving regional connectivity. Map 4.1: Uganda's Growth Triangle

4.5.2 — Programme based approach

4.5.2 Programme based approach 83 To strengthen the alignment of plans, budgets, and implementation at the macro, sector and local government level; government will introduce the programme-based approach to planning. Within the context of this Plan, a programme is a group of related interventions/projects that are intended to achieve a common objective within a specified timeframe. The programme approach has been adopted for three main reasons: (i) To focus implementation on delivery of common results. Achievement of results specified in these development frameworks does not neatly fall within any particular sector; (ii) To strengthen alignment and eliminate the ‘silo’ approach to service delivery and enhance synergies across sectors and other actors; (iii)To provide a framework for the already existing programme-based budgeting. 84 Using this approach, national programmes have been designed to provide the framework for budgeting and implementation of activities that will deliver the specified results. These programmes have been developed using the value chain approach to ensure all interventions targeting the bottlenecks at the different stages of the value chain as well as the relevant stakeholders are identified. In addition, this approach will improve the linkage between the national results framework as outlined in NDP III and the annual plans/budgets (for sectors and MDAs) that provide the conduit for implementation. The MTEF and annual national budgets will then be based on the developed and costed programmes and projects included in NDPIII, and these 41 NATIONAL PLANNING AUTHORITY programmes and projects will have the first call on the financial resources in the national budget.

4.5.3 — Regional Approach to Planning and Implementation

4.5.3 Regional Approach to Planning and Implementation 85 To address area specific priorities and inequities in growth and household incomes, local government planning and implementation will be strengthened as the major driver of Local Economic Development (LED). Groups of local governments will be supported to develop Regional Development Plans in order to address specific development programmes that transcend district boundaries. A group of districts in northern Uganda have already come together and developed the Northern Uganda Regional Development Plan. Another Regional Development Plan has been developed for the Kasese region. The Busoga region is also considering developing a Regional Development Plan. The different regions will also be supported to do the same.

4.5.4 — Area Based Commodity Planning

4.5.4 Area Based Commodity Planning 86 Using the experience of success obtained from Kalangala, Ankole, Kigezi and Toro in the commercial production of vegetable oil, dairy and tea (respectively); the Area Based Commodity Planning approach will be utilized to replicate this success. Using this approach, districts are to be clustered into nine agro-ecological zones and will be supported to maximize value addition in the selected commodities. A value chain has been developed for each selected commodity and used to critically analyse the bottlenecks constraining increased production/productivity and wealth creation. Projects will then be developed to address the identified bottlenecks. In addition, Government will strengthen its presence and service delivery capacity at both the sub-county and parish levels. The sub-county will be the unit of development planning, with the parish as the unit at which farmers will be organized and supported to increase production/productivity, bulk and market agricultural produce and for data-collection. Parishes will be used as the centres for delivery of production, marketing and financial services to farmers. The parish chief will also be the focal person in coordinating supervision of agricultural extension, primary education and health service delivery.

4.5.5 — Integrated Human Resource Development Planning Approach

4.5.5 Integrated Human Resource Development Planning Approach 87 To harness the potential of human resource to adequately drive Uganda’s development agenda, NDPIII has adopted an integrated Human Resource Development Planning approach. The approach is required to: build up the skills base of the country to fill the critical skills and education requirements for employment, employability and sustainable growth; expand the pool of entrepreneurs, business leaders, managers and professionals who will be able to contribute to solving problems in their establishments, create new products and services and help their enterprises to grow; and streamline national education and training systems in light of the national, regional and global Human Resource needs and trends. 88 A 5-Year National Human Resource Development Plan (NHRDP) has been developed as an attendant plan to this third 5-year National Development Plan (NDPIII). The 5-Year NHRDP is the first of its kind in the Vision 2040 period and lays 42 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 down strategies to guide and streamline the development of human resources in line with the short term, medium and long-term national development priorities. The NHRDP serves as a tool that determines the demand and supply of human resources by quantifying the skills and education qualifications that the country needs in the short term as well as over the medium and long terms while considering national, regional and international focus into context.

4.5.6 — Human Rights Based Approach (HRBA)

4.5.6 Human Rights Based Approach (HRBA) 89 To ensure inclusive sustainable development, the NDPIII has adopted the HRBA with particular attention to human rights principles of equality and non- discrimination, empowerment and participation and attention to vulnerable groups. Application of this approach will contribute to bringing the government closer to the people in order to effectively address their development needs, advance equality and leave no one behind. All sectors, ministries, departments, agencies and local governments are expected to adopt HRBA in their respective policies, programmes, legislation and plans.

4.6 — Development Strategies

4.6 Development Strategies 90 To achieve the strategic objectives and deliver envisaged results NDPIII adopts 21 development strategies. These strategies are detailed below.

4.6.1 — Agro-Industrialization

4.6.1 Agro-Industrialization 91 Agro-processing occupies a very important place in the agricultural value chain, creating backward and forward linkages between the farm and the market. The backward and forward linkages between the agricultural, industrial and service sectors through agro-industrialization will stabilize and increase demand for raw agricultural commodities, increase prices, and stimulate increased production/productivity through increased use of improved inputs, increased agricultural research and reduced postharvest losses.

4.6.2 — Fast-Track Oil, Gas and Mineral-Based Industrialization

4.6.2 Fast-Track Oil, Gas and Mineral-Based Industrialization 92 This plan has prioritized the fast-tracking of interventions aimed at facilitating the production and processing of oil/gas as well as mining, beneficiation and manufacturing based on seven minerals, namely, iron ore, phosphates, copper, marble/limestone, gold, dimension stones, and sand/aggregates. These have been chosen based on the fact that they whether they exist in large enough quantities to enable commercial exploitation as well as their potential to impact upon the industrialization process. A matrix showing the various uses of these seven and other minerals that Uganda is endowed with is included in this plan as Annex 4. It is these uses that have guided the prioritization of these seven minerals as the launch pad for a mineral based manufacturing programme.

4.6.3 — Import Substitution/Promotion of Local Manufacturing

4.6.3 Import Substitution/Promotion of Local Manufacturing 93 Government will adopt an import substitution strategy where suitable to nurture and promote local manufacturing. Import substitution will be a spring board for 43 NATIONAL PLANNING AUTHORITY building; a resilient, integrated, independent and self-sufficient economy; capacity for export promotion in the medium to long term and improving competitiveness and strengthens the private sector to drive growth and create jobs. This strategy is informed by three key facts: only 10 commodities account for about 60 percent of the total import bill of goods; service imports account for about 30 percent of the total import bill of goods and service, 95 percent of which are transport, consultancy, travel and construction; some imports though of small value, are essential for the livelihood of Ugandans and are susceptible to disruptions in global value chains (e.g. salt & fertilizers). 94 In this regard, 10 products and 3 services will be prioritised for import substitution: petroleum and petroleum products; iron and steel; medical and pharmaceutical products; cereals; plastics; vegetable fats and oils; textile; salt; fertilizer; sugars and sugar preparations; transport; construction; and medical services.

4.6.4 — Export Promotion

4.6.4 Export Promotion 95 An export-oriented strategy is important as a means to increase Uganda’s foreign exchange earnings which will play a significant role in financing development projects and repay external debts. Thus, an export-oriented strategy will seek to increase the value and volume of manufactured food products processed from the agricultural commodities specified above, textiles, cement, steel, soft drinks and processed minerals and oil. Proceeds from the sale of minerals and oil will be spent on the construction of infrastructure to further increase competitiveness as well as the importation of equipment to drive the industrialization process. Government will focus on increasing and sustaining Uganda’s market share in four key markets, namely: (i) EAC, COMESA and AfCFTA. This is a key market because of its proximity and the market access requirements (phyto-sanitary) are similar to Uganda’s and hence user specifications require little or no modification. It is a prime market for: building materials (cement, steel, tiles and plastics); fast moving consumer goods (sugar, dairy products, cooking oil, soap, and kitchen ware); as well as cereals and grains. In addition, it provides preferential access to Uganda’s products through targeted negotiated trade agreements. (ii) Middle East. This is a stable and dependable market for the export of livestock and its products (beef, goat, dairy and poultry); as well as fruits and vegetables (pineapples, apple bananas, and avocadoes). The proximity of this market together with the market access requirements that are not as stringent as the European market makes it easier to secure and sustain. However, there is no negotiated bi-lateral trade agreement with this market, and Ugandan exporters have not been able to consistently supply the goods in required quantities at specified times. (iii)China. This is a crucial market because it is very big and growing. It is suitable for the export of poultry, beef, dairy, fish and its products, hides and skins (wet blue), cow horns, processed coffee, semi-processed cotton, sesame, and cocoa. There is increasing bi-lateral cooperation with China and it is Uganda’s biggest import market. Uganda’s limited exports to this market therefore contributes significantly to the country’s negative trade balance. China has offered Uganda unilateral duty free and quota free access for over 3,000 commodities which are however limited by Technical Barriers to Trade (TBT) e.g. quality standards and tariffs on processed goods. 44 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 (iv) European Union. This is a traditional market where contracts exist and products are known. It is a good market for the export of fish, coffee, cocoa, and flowers. It is also a stable high-income market. Ugandan products have been offered access concessions through WTO and the Economic Partnership Agreement. 96 In order to support an increase in the share of exports to these four markets, focus should be put on the following areas: (i) Commercialization of agriculture/organization of farmers to ensure consistency in the supply of agriculture commodities exported to these markets; (ii) Development and enforcement of standards through regulation, certification, and enforcement of phyto-sanitary standards to ensure consistency in the quality of commodities exported; (iii) Strengthening commercial diplomacy and aggressive marketing to: create awareness of Ugandan made commodities, and lay the groundwork for negotiating bi-lateral trade agreements especially with China and the Middle East; (iv) Link local producers/manufacturers to external markets, and support negotiation of joint ventures between local producers/manufacturers and foreign suppliers; (v) Development of free zones; (vi) Introduction of export guarantee schemes; and, (vii) Strengthening institutional framework to support export development.

4.6.5 — Harness the Tourism Potential

4.6.5 Harness the Tourism Potential 97 Despite the shocks and vulnerability, Government will continue promoting tourism as a foreign exchange earner and employer, providing an opportunity for many Ugandans to earn a living at the various levels of the tourism value chain. With diversification and development of the various tourism products, creative marketing, expansion of tourism source markets beyond the traditional ones, and improved infrastructure the country can double or even triple the number of tourist arrivals as well as the revenue generated by the sector thereby creating a lot more jobs in the process. Uganda will be marketed both as a niche tourism ‘product’ offering an unparalled/unique tourism experience and as a mass tourism destination. Special resilient products will be designed for the different categories of tourists including: culture and heritage sites, religious events, eco-tourism, education and sports, medical tourism, plus nature and wildlife.

4.6.6 — Provide a suitable fiscal, monetary and regulatory environment for the private

4.6.6 Provide a suitable fiscal, monetary and regulatory environment for the private sector to invest 98 Government will continue to support and strengthen the private sector as the main engine for growth, job creation and increased household income. Government will continue to address the challenges constraining private sector growth, including slow bureaucratic decision making by the public service, corruption, case backlog in the judiciary, and inadequate access to patient capital. In addition, government will continue to provide an enabling environment for private sector growth through maintaining macroeconomic stability, provision of long-term finance at affordable rates, reduction in 45 NATIONAL PLANNING AUTHORITY the amount of domestic arrears and putting in place mechanisms to ensure these are kept low as well as strengthening the use of PPP arrangements. By so doing, both domestic and foreign investors will be incentivized to increase investment in agro-processing, manufacturing, mineral mining and beneficiation and ICT. Insurance will be leveraged to enhance productivity by deepening the insurance industry to increase risk management.

4.6.7 — Increase local content participation

4.6.7 Increase local content participation 99 Leverage local content participation in key major infrastructure projects to nurture the private sector. Starting with Karuma and the new suspended cable bridge in Jinja, government has increased efforts to increase local content participation through local procurement and supply of cement, iron and steel products as well as technical services in the case of the latter. Over the course of NDPIII, Government will scale up interventions to increase use of locally procured goods and services through use of preference schemes and investment in supplier development programmes. Government will also partner with the private sector to undertake workforce development programmes (skilling, training and re-training/retooling) to promote employment of local workforce. Increased use of local content will enhance value addition in Uganda’s products and exports, increase competency of the national workforce as well as create jobs.

4.6.8 — Institutionalize infrastructure maintenance

4.6.8 Institutionalize infrastructure maintenance 100 Infrastructure efficiency and its lifetime is limited due to a number of factors, one of which is the lack of a maintenance culture. Under this strategy, focus will be on prioritizing regular scheduled maintenance of transport infrastructure to increase lifetime through, for instance, building the capacity of the local construction industry and establishment of local hire pools. The youth will be encouraged to form hire pools and will be given special consideration in the award of contracts. Secondly, and more importantly, climate proofing the already existing transport infrastructure through, for instance, raising bridges and improving drainage systems will be carried out. Adequate provision will be made for operation and maintenance expenditure. In addition, audits of operation and maintenance activities will be strengthened to ensure value for money.

4.6.9 — Develop intermodal transport infrastructure to enhance interoperability

4.6.9 Develop intermodal transport infrastructure to enhance interoperability 101 Government will continue to improve the country’s competitiveness by investing to reduce transport costs and improve transport interconnectivity. Government will selectively implement a few but strategic interventions in the transport network to further enhance interoperability with the aim of harnessing the exploitation of opportunities, increasing exports and opening up export opportunities in new markets. Hence, investments in the transport sector will contribute towards lowering the cost and increasing the efficiency of the country’s connections to regional and global markets as well as increasing interconnectivity within the country. Special emphasis will be placed on upgrading transport infrastructure around Lake Kyoga to facilitate connections across Lake Kyoga linking Nakasongola, Lango, Teso and Busoga through tarmacking of roads around the lake and introduction of ferry services on the lake. This will open the remote areas around the lake to tourism and trade. In addition, government will prioritize rehabilitation of the meter-gauge railway for bulk transportation of goods within the 46 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 country; it will also upgrade the urban infrastructure particularly in the greater Kampala metropolitan area to reduce traffic congestion and its cost to the economy and improve rural road infrastructure.

4.6.10 — Increase access to stable, reliable and affordable energy

4.6.10 Increase access to stable, reliable and affordable energy 102 Access to affordable, reliable and stable power is critical to the industrialization process. The main aim under this strategy will be to lower the cost of power to 5 U.S. cents per unit, increase generation capacity to at least 3500MW and increase access to the national grid to a minimum of 60 percent of the population. Emphasis will be on extending electricity supply to business and industrial parks, factories and other production centres. A three-pronged approach of increasing power generation and evacuation, upgrading transmission and distribution networks as well as extending coverage will be utilized.

4.6.11 — Leverage urbanization as a driver for socio-economic transformation

4.6.11 Leverage urbanization as a driver for socio-economic transformation 103 Government will pursue planned inclusive green cities that create economic opportunities for all, including the urban poor. Opportunities arising out of urbanization for industrialization and from industrialization for urbanization will be articulated to better leverage urbanization for accelerated industrialization. Industrial policy, spatial plans, and national value chains will factor in ways urban functionality can support productivity of firms. In addition, urban planning will aim to achieve more balanced national urban systems, optimizing the complementary roles of the different cities, both large and small i.e. the national capital, regional cities, and strategic cities as articulated in Vision 2040.

4.6.12 — Improve access and quality of social services

4.6.12 Improve access and quality of social services 104 A skilled, innovative and healthy labour force is essential for attracting local and foreign investment, which is essential for driving industrialization and sustained acceleration of growth. To this end, government will focus on improving the quality and relevance of education service delivery in order to bridge the gap between the requirements of industry and the skills taught in the education institutions. Health services will be restructured to focus more on disease prevention using a multi-sectoral approach as opposed to the current curative focused model. Interventions focused on the ever- increasing burden of non-communicable diseases (NCDs) will be stressed to reduce mortality and impoverishment due to prolonged ill-health plus economic loss due to medical referrals abroad.

4.6.13 — Institutionalize human resource planning for the economy

4.6.13 Institutionalize human resource planning for the economy 105 Developing capabilities for forecasting the human resource requirements for the changing structure of the economy to address the situation where unemployment exists side by side with skill gaps in firms is critical. In that regard, Government will prioritize the development of National Human Resource Development Plan to provide a framework for guiding human resource development, at all levels. Consequently, the National Development Plan as well as all sector and LG plans will have approved Human Resource Development Plans within the first year of their implementation. 47 NATIONAL PLANNING AUTHORITY

4.6.14 — Enhance skills and vocational Development

4.6.14 Enhance skills and vocational Development 106 Government will prioritize skills and vocational development to address unemployment, especially among the youth. This will be informed by the skills projections in the national and sectoral human resource plans done through undertaking quick skills mapping with emerging or anticipated job opportunities in the economy. Government will then review the current Skilling Uganda Strategy and align it to the national and sectoral human resources plans and develop a comprehensive strategy to address the gaps in a coherent manner through existing or new vocational and tertiary institutions. Preference will be given to supporting building capacities of the existing vocational and tertiary institutions to start or expand programmes that produce graduates with the required skills, while at the same time reducing intakes for courses that no longer address the needs of our economy. For instance, vocational and tertiary institutions will be supported to develop a pool of national expertise in the emerging mining, light manufacturing, oil and gas industries. Overall, all skilling initiatives shall aim at providing Ugandans with Knowledge, Skills and Values for employment, job creation and productivity in the NDPIII growth areas.

4.6.15 — Promote Science, Technology, Engineering and Innovation as well as ICT

4.6.15 Promote Science, Technology, Engineering and Innovation as well as ICT 107 Government will prioritize strengthening of the legal framework around innovation to increase technology adaption and diffusion. In addition, Government will strengthen the framework and mechanisms for guiding and coordinating research, innovation, and development of appropriate technology. Government will place special emphasis on the development of a policy and institutional framework for importation of appropriate technology. In particular, special focus will be given to ICT by establishing ICT incubation centres, and increasing internet access and bandwidth will be prioritized. Government will prioritize investments in ICT services to increase coverage as well as usage, down to the household level for increased productivity, especially in agriculture and the informal sector.

4.6.16 — Increase access to social protection

4.6.16 Increase access to social protection 108 Government is already implementing programmes aimed at addressing the needs of some of the marginalised and vulnerable populations. However, these programmes leave out significant numbers of the vulnerable people. Under this strategy, Government will prioritize merging, modification and/or expansion of existing programmes to cover more beneficiaries within the existing age cohorts or to include new age cohorts. It is only when existing programmes cannot be modified or expanded to meet emerging needs that consideration will be given to designing new ones focusing on both direct and indirect income support and provision to social care services among the vulnerable.

4.6.17 — Promote development-oriented mind-set

4.6.17 Promote development-oriented mind-set 109 Government will streamline all “mindset change” initiatives currently being implemented under Ministry of Information and Communication Technology and National Guidance plus a number of other government agencies e.g. the Ministry of Ethics and Integrity and National Leadership Institute (NLI) - Kyankwanzi into one coherent, 48 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 integrated and comprehensive programme to increase impact. In addition, the role of faith- based organizations, cultural institutions and families in re-orienting the mindsets of Ugandans to development will be leveraged. A national guidance strategy to harmonize interventions and communicate progress on development issues as well as increase participatory civic engagement in decision making will be developed and implemented. In the long-term, Government will review education curricula with the view to increase students’ consciousness on national values, ideology and national defense.

4.6.18 — Increase government participation in strategic sectors

4.6.18 Increase government participation in strategic sectors 110 Government will intervene in strategic sectors to remove market distortions, lower entry barriers (particularly capital), as well as introduce and enforce policies, regulations and/or incentives to promote private investment. Beyond the basic role of the state in development (of providing peace and security, ensuring macro-economic stability, and providing a conducive investment climate) the Ugandan state shall proactively act to stimulate agricultural, industrial, technological and scientific development by intervening directly, forming PPPs and/or incentivizing the private sector to invest in strategic sectors to unlock the country’s development potential. Government will make a strategic decision to either: (i) invest directly or jointly with the private sector (PPPs) and local communities in certain priority sectors through the Uganda Development Corporation (UDC) and also revamp strategic State-Owned Enterprises; (ii) use government lending at preferential interest rates to promote private investment in key sectors through Uganda Development Bank (UDB) or other government banks (e.g. Postbank, Pride Micro finance), or; (iii)provide tax benefits to key private sector players, in selected priority sectors in line with the local content policy, through the Ministry of Finance, Planning and Economic Development to increase investment and production in key strategic industries or sectors. 111 In addition, Government will intensify and streamline its efforts in marketing Uganda’s goods and services in regional and global exports markets. The Uganda Investment Authority and the Uganda Export Promotion Board will be tasked to work together more effectively to identify, address and/or recommend to the appropriate government agencies challenges inhibiting international competitiveness. Government will also increase ownership of key public infrastructure to reduce monopolistic exploitation and increase competitiveness. Government will tackle land administration challenges in order to increase land available for productive use and also, increase guidance of ordinary citizens on more productive application of their labour.

4.6.19 — Increase Resource Mobilization for Implementation of National Development

4.6.19 Increase Resource Mobilization for Implementation of National Development Programmes 112 Domestic revenue will be the main source of financing for this Plan. In that regard, government will intensify domestic revenue mobilization in order to increase revenue to GDP ratio from the current 12.8 percent to at least the sub-Saharan average of 15 percent. 49 NATIONAL PLANNING AUTHORITY Government will do this, through more efficient and effective tax administration, compliance enforcement and tax evasion reduction strategies. This will be achieved through leveraging technology advances and data systems such as integrating National Identification and tax systems data. Government will maintain a stable and predictable tax regime over the medium term given the consensus that the country has limited room for introducing new tax measures without overburdening the tax payer. However, Government will also intensify efforts to mobilize other sources of financing for implementation of government priorities under this Plan through use of infrastructure bonds, diaspora remittances, and secondary markets among others. 113 Government will prioritize development of the secondary market infrastructure. Secondary markets will be developed to promote more participation of Ugandan citizens in the buying and selling of financial securities in order to support the mobilization of patient capital. The failure of investors to sell and buy securities amongst themselves hinders the development of Uganda’s capital markets. One of the means of promoting the development of the secondary market is to conduct all government bond secondary trading on the local stock exchanges and subject to regulation by the Capital Markets Authority. 114 The pension fund remains a largely under-utilized resource. The pension sector will be reformed to attract more local players into the industry. In addition, employees will be organized into groups to participate in pension funds of their choice. Whereas remittances from Ugandans abroad have grown significantly over the years, these are used largely for consumption. Government will implement policy measures aimed at redirecting the use of remittances from consumption to development as an additional source of financing by for instance issuing diaspora bonds, enabling diaspora Ugandans to buy treasury bills over the internet and other innovations.

4.6.20 — Re-engineer the Public service to promote investment

4.6.20 Re-engineer the Public service to promote investment 115 Government will streamline its operations to cut bureaucratic red tape, reduce duplications and speed up clearances for business operations, fight corruption, as well as introduce and enforce policies, regulations and/or incentives to promote private investment and exports. Government will address issues relating to increased use of technology such as e-extension and marketing in agriculture; popularizing the use of virtual tours and destination management systems in tourism; as well as tele-medicine in health in order to deliver services more efficiently and effectively and in a transparent and accountable manner. Government will also build capacity in all MDAs and LGs to conduct feasibility studies, design and manage programmes/projects as well as conduct negotiations e.g. for programme/project funding. 116 In addition, Government will work to strengthen legislative and judicial capacity, two of the key institutions needed to develop an internationally competitive business environment. Efforts will be directed at improving the efficiency of the judicial due process and adjudication in terms of the number of court appearances as well as time taken to conclude a case, and streamline judicial operations to reduce case backlog particularly of a commercial nature. Support to the legislature will be aimed at further strengthening research capacity as well as reducing the time needed to debate and pass legislation. 50 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

4.6.21 — Enhance partnerships with non-state actors for effective service delivery

4.6.21 Enhance partnerships with non-state actors for effective service delivery 117 All development programmes will be mainstreamed into the Plan and included in the national budget to optimize resources for national development. Civil Society interventions and resources are not included in the NDP framework. This is also true for resources used to finance programmes that are implemented directly by development partners or MDAs through off-budget financing. Government will increase coordination of development initiatives by development partners and NGO/CSOs as well as strengthen the partnership with the private sector to ensure all resources are deployed in the implementation of the same set of development priorities.

4.7 — NDPIII Approach to Realization of SDGs

4.7 NDPIII Approach to Realization of SDGs 118 Industry, Governance and Environment have been identified as accelerators for the attainment of NDPIII targets and in particular SDGs. This was guided by a customised Uganda Integrated Sustainable Development Goals (iSDG) model. First, public investment in industry contributes to: reduction in poverty; access to clean and safe water and sanitation; access to affordable energy; access to decent employment; resilient infrastructure; sustainable consumption and production; combating the impacts of climate change. Second, good governance is key to the implementation of public expenditure and the facilitation of private investment and also increases productivity with significant improvement on a number of SDGs. Governance directly contributes to achievement of peaceful and inclusive societies. It also facilitates private investment, bringing people out of poverty, and increasing the effectiveness of implementation of water and sanitation activities. Third, environment on the other hand, directly contributes to the achievement of; sustainable cities, combating climate change and protection and preservation of environment and natural resources. It also helps significantly in the mitigation of the negative consequences of industrialization which could otherwise have a negative impact on growth and vulnerability. 119 Investment in the SDG accelerators requires adoption of a highly integrated approach that supports implementation of interventions in conjunction with others. The interventions in the accelerators must be implemented simultaneously in order to maximize the benefits arising from the synergies. Investment in industry and the added production it brings, serves well to help other sectors through spillovers in health outcomes (SDG 3) and reducing inequalities (SDG 5). However, industry interventions should be implemented in conjunction with others, especially environment, to help mitigate some of the negative spill overs from this investment. The synergistic effect of investing in industry alongside environment is critical to the achievement of SDG 8. Investing in governance alone contributes negatively to SDG 8, however, implementing it simultaneously with others has a strong synergistic effect.

4.8 — National Development Programmes

4.8 National Development Programmes 120 To implement the strategies articulated in 4.6 and achieve NDPIII goal, strategic objectives and envisaged results, 18 integrated programmes are identified. Interventions related to the identified SDG accelerators have been integrated across the 18 programmes to enhance synergies because the accelerators work best when implemented together. The programmes are: 51 NATIONAL PLANNING AUTHORITY (i) Agro-Industrialization; (ii) Mineral Development; (iii) Sustainable Petroleum Development; (iv) Tourism Development; (v) Natural Resources, Environment, Climate Change, Land and Water Management; (vi) Private Sector Development; (vii) Manufacturing; (viii) Digital Transformation; (ix) Integrated Transport Infrastructure and Services; (x) Sustainable Energy Development; (xi) Sustainable Urbanisation and Housing; (xii) Human Capital Development; (xiii) Community Mobilization and Mindset Change; (xiv) Innovation, Technology Development and Transfer; (xv) Regional Development; (xvi) Governance and Security; (xvii) Public Sector Transformation; and (xviii) Development Plan Implementation. 121 These programmes incorporate the country’s regional and international development commitments and also address the thirteen (13) strategic bottlenecks to Uganda’s socioeconomic development, identified by H.E the President. This is illustrated in Annexes 1 and 2 respectively. The bottlenecks have been integrated into the African Union’s African Peer Review Mechanism (APRM). Detailed articulation of the programmes is provided in the subsequent chapters. 122 Effective implementation of the programmes will require that the country pays special attention to the human resource requirements of the specific program. The qualifications and skills required for effective implementation of planned program interventions are articulated under each program. These qualifications and skills gaps projected using the National Macro Model for human resource, indicate the nature of human resource that is critical to National Development priorities over the short, medium and long term. The qualifications and skills gaps fall in three (3) categories: (i) critical shortages with no training available in the country; (ii) where training is available in the country but in less supply, and (iii) where training is available, but in excess supply. Broad interventions to address these gaps are highlighted under objective two of the Human Capital Development Programme and the attendant National Human Resource Development Plan (NHRDP). In addition, sectors will prioritize these trainings in their respective Sector Development Plans and Sector Human Resource Development Plans over the next 5 years. 52 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

4.9 — NDPIII Core Projects

4.9 NDPIII Core Projects 123 NDPIII Core projects are high multiplier projects with significant impact to realization of the Plan results. The NDP identifies projects at two stages, core projects (Table 4.2) and other programme projects (Annex 3). Core projects are priority for the Plan. They have interventions that directly contribute to the delivery of key results of the Plan. They contribute most to attainment of desired results of the plan. These form a central focus for project implementation and monitoring during the plan period. Other programme projects are also considered as critical to the NDPs and these are delivered in the routine Government processes. 124 The selection of NDPIII core projects also took regard of other key development planning requirements, specifically the need for balanced development. Some projects have been selected as core due to the fact that: they require concerted effort of a wide array of stakeholders outside the lead implementing agency/sector for execution and hence place high demands on the need for concerted efforts; have large geographical coverage and create regional balance of interventions and results; while others are project ideas in the Uganda Vision 2040. Table 4.1: NDPIII Core Projects Programme Core Projects Status Financing Start End Date Date Agro- 1. Fertilizer Blending Plant and NDPIII Project Private, 2020/21 2024/25 industrialisation Utilization Project (increase Idea PPP blending capacity from 300,000 MT to 1,500,000 MT and increase adoption rate from 2.5Kgs per hectare to 25Kgs per hectare) 2. Tractor Assembly Plant NDPIII Project Private, 2020/21 2024/25 Idea PPP 3. Increase access to affordable NDPIII Project Public 2020/21 2024/25 mechanization at sub-county Idea level project (Tractors at cheaper cost to cover O&M, and appropriate mechanization equipment at sub-county level) 4. Establishment of irrigation ongoing Public 2020/21 2024/25 systems project. (increase Projects and concentration in lacking NDPIII project regions and extraction idea countrywide) 5. Production, Testing and NDPIII Project Public 2020/21 2024/25 Commercialization of Idea pesticides, acaricides, and herbicides project 6. Agriculture Storage and NDPIII Project Private, 2020/21 2024/25 Post-harvest handling Idea PPP, Infrastructure (Silos, Cold Public rooms and Dryers) 7. Regional Agricultural Ongoing Private, 2020/21 2024/25 Processing and Marketing Public, (cassava; meat; grains; dairy; PPP potatoes; Rice) 53 53 NATIONAL PLANNING AUTHORITY Programme Core Projects Status Financing Start End Date Date 8. Markets & Agriculture Ongoing Public, 2020/21 2024/25 Improvement Project (Phase PPP II) (increase coverage from 50% municipals to 75% municipals covered) 9. Coffee value chain NDPIII Project Public, 2020/21 2024/25 development project Idea Private, (Rehabilitation of old coffee PPP trees-70%, Washing Station, and Soluble coffee Plant). 10. Textile milling and NDPIII Project Public, 2020/21 2024/25 garmenting Project (Increase Idea Private, milling capacity from 25,000 PPP (15%) bales to 80,000 bales (30%) and exports from USD 20Min to 100M USD) 11. Tea value chain NDPIII Project Public, 2020/21 2024/25 development project Idea PPP, (Research & Development Private and Processing Plants) 12. Fish and Fish products NDPIII Project Public, 2020/21 2024/25 value chain development Idea Private, project. (restocking PPP endangered species, preservation of breeding grounds and aquaculture parks) Mineral 13. Establishment of Steel Feasibility PPP, 2019/20 2024/25 Development Industry Private Sustainable 14. Hoima Oil Refinery Feasibility Public 2020/21 2024/25 Development of 15. East Africa Crude Oil Feasibility Public 2020/22 2024/26 Petroleum Pipeline (EACOP) Resources Tourism 16. Development of Source of Feasibility Public, 2020/21 2024/25 Development the Nile and Kagulu hills Private, PPP 17. Tourism Roads Concept Public 2020/21 2023/24 Development Project Kisoro i) Kabale - Lake Bunyonyi Concept Public 2020/21 2023/24 (8.0km); ii) Mgahinga National Park Concept Public 2020/21 2023/24 Headquarters (14.0km); iii) Kisoro - Nkuringo - Concept Public 2020/21 2023/24 Rubuguri - Muko (54.0km) iv) Rubuguri-Nteko Road Concept Public 2020/21 2023/24 (22.0km) v) Hamurwa-Kerere- Concept Public 2020/21 2023/24 Kanungu/Buleme- Buhoma-Butogota- Hamayanja-Ifasha-Ikumba (149.0Km); vi) Ishasha-Katunguru Concept Public 2020/21 2023/24 (88.0Km) vii) Kitgum-olumu-Kalenga- Concept Public 2020/21 2023/24 Kapedo-Kaabong (184Km); 54 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Programme Core Projects Status Financing Start End Date Date viii) Kebisoni-Kisizi- Concept Public 2020/21 2023/24 Muhanga/Kambuga Road (117km) 18. Mt. Rwenzori Tourism Ongoing Public 2020/21 2024/25 Infrastructure Development Project (Phase II) 19. Mt. Elgon Tourism NDPIII project Public 2020/21 2024/25 infrastructure Development idea Project 20. Improve and upgrade Feasibility Public 2020/21 2024/25 Kidepo Aerodrome Natural 21. National Community Tree NDPIII Project Public, 2020/21 2024/25 Resources, Planting Project (restore & Idea Private, Environment, maintain 102,000 ha of PPP Climate degraded forests & Establish Change, Land 200,000 ha of community and Water tree planting-woodlots; Management 6,320 of urban planting- greening) 22. Support to rural water Feasibility Public 2020/21 2024/25 supply and sanitation project. (From 53percent coverage to 71percent coverage) 23. Building Resilient Ongoing Public 2018/19 2022/23 Communities, Wetland Ecosystems and Associated Catchments in Uganda 24. Comprehensive inventory NDPIII project Public NDPIII NDPIII of Land (from current 23 idea project project percent of titled land to 50 idea idea percent) Private Sector 25. Capitalisation of strategic Ongoing Public 2015/16 2024/25 Development Public Corporations (UDB, UDC, UTL and UNOC) 26. Micro, Small and Medium NDPIII Project Public, 2020/21 2024/25 Enterprise (MSME) Idea Private, Competitiveness Project PPP 27. Co-operatives NDPIII Project Public, 2020/21 2024/25 revitalization for increased Idea Private, production and productivity PPP Manufacturing 28. Industrial Parks Ongoing Public 2015/16 2024/25 Development (Namanve, Bweyogerere, Luzira, Soroti, Moroto, Mbale, Masaka, Jinja, Mbarara, Kasese, Luwero-Nakaseke, Arua, Gulu, Fort-Portal, Kabale, Hoima, Oraba, Onaka) 29. Construction of Border NDPIII Project Public 2020/21 2024/25 Export Markets especially Idea for South Sudan and Eastern DRC 30. Automotive Assembly NDPIII Project PPP, 2020/21 2024/25 Project Idea Private 31. Standard - Gauge Railway Feasibility Public 2021/22 2024/25 55 NATIONAL PLANNING AUTHORITY Programme Core Projects Status Financing Start End Date Date Integrated 32. Regional Trade Roads Transport i) Rakai – Isingiro- Kafunjo- NDPIII Project Public 2020/21 2024/25 Infrastructure Kikagati (135km) Idea and Services ii) Koboko – Yumbe – Moyo NDPIII Project Public 2020/21 2024/25 (105Km) Idea iii) Nabumali Corner- NDPIII Project Public 2020/21 2024/25 Butaleja-Namutumba Idea iv) Rukungiri-Ishasha- NDPIII Project Public 2020/21 2024/25 Ruthuru Idea v) Rwebisengo-Budiba- NDPIII Project Public 2020/21 2024/25 Bunia Road (including a Idea Bridge across River Semmuliki). 33. Community Roads Feasibility Public 2020/21 2024/25 Improvement Project (Total 7,905 Kms; North 1,975Kms, East 2,300Kms, Central 1,540Kms, West 2,090Kms) 34. Rehabilitation of the Meter Feasibility Public 2021/22 2024/25 Gauge Railway (Relief of Road Transport of Cargo transportation) 35. Kampala-Jinja Express Procurement PPP 2021/22 2024/25 Highway 36. Kibuye – Busega Express Procurement PPP 2021/22 2024/25 Highway (City decongestion) 37. Busega - Mpigi Ongoing PPP 2019/2020 2023/24 Expressway (City decongestion) 38. Kampala Flyover Ongoing Public 2019/20 2024/25 Construction and Road Upgrading Project (City decongestion) 39. Iganga-Bulopa/Buwenge- Feasibility & Public 2019/20 2024/25 Kaliro/Bugembe-Kakira- detailed designs Bulongo 40. Rwenkunye-Apac-Lira Procurement Public 2021/22 2024/25 (Regional interconnectivity) 41. Bukasa Inland Port Feasibility & Public 2020/21 2023/24 detailed designs 42. Bukasa Inland Port (Inland Feasibility & Public 2020/21 2023/24 Water Transport to connect detailed designs the country to Kisumu and Mwanza ports through Victoria) 43. Bridge Project (including Feasibility & Public 2020/21 2024/25 Karuma, Laropi, Mpondwe, detailed designs & Semliki Bridges among complete others, 44. to promote connectivity across the country) 45. Improvement of Ferry NDPII ongoing Public 2024/25 Services Project (Improvement of water transport services) 56 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Programme Core Projects Status Financing Start End Date Date 46. Improvement of Ferry NDPII ongoing Public 2024/25 Services Project Energy 47. LPG Infrastructure Feasibility Public 2020/21 2024/25 Development Development Project Private (provision of clean energy and sustainable environment) 48. Feasibility study for Feasibility Public 2020/21 2024/25 i. Ayago (840MW) ii. Oriang HPP (392MW) 49. Kiba HPP (330MW) 50. Industrial Substations Ongoing Public 2020/21 2024/25 Upgrade (rehabilitating the existing substation to accommodate industrial power supply 320kv and 400kv) i) Lugogo Ongoing Public 2019/20 2022/23 ii) Mutundwe Ongoing Public 2019/20 2022/23 iii) Nkonge Ongoing Public 2019/20 2022/23 iv) Kampala North Ongoing Public 2019/20 2022/23 Substations v) Jinja Ongoing Public 2019/20 2022/23 vi) Rakai Ongoing Public 2019/20 2022/23 vii) Bushenyi Ongoing Public 2019/20 2022/23 viii) Kole Ongoing Public 2019/20 2022/23 ix) Nkonge Ongoing Public 2019/20 2022/23 x) Mubende Ongoing Public 2019/20 2022/23 51. Expansion and rehabilitation of the following transmission and distribution network i) Masaka – Mwanza 220kV; Concept Public 2020/21 2024/25 (Transmission for export to Tanzania) ii) Nkenda – Mpondwe - Beni Concept Public 2020/21 2024/25 220kV;(Transmission for export to Democratic Republic of Congo) iii) Olwiyo – Nimule – Juba Ongoing Public 2018/19 2023/2024 400kV; (Transmission for export to South Sudan) iv) Grid Extension in North Concept Public 2020/21 2024/25 East, Lira and Buvuma Islands v) Kabaale-Mirama Ongoing Public 2016/17 2021/22 Transmission Line vi) Masaka -Mbarara Grid Ongoing Public 2017/18 2021/22 Expansion Line (400kv); transmission of industrial electricity to Mbarara and for expansion to Muko to aid exploitation of iron ore) vii) Opuyo-Moroto 220Kv NDPIII project Public 2020/21 2024/25 (Transmission of Industrial idea power to Karamoja) 57 NATIONAL PLANNING AUTHORITY Programme Core Projects Status Financing Start End Date Date Digital 52. IT Shared Platform Feasibility Public 2020/21 2022/23 Transformation (GOVNET) 53. National Postcode and NDPIII project Public 2020/21 2024/25 addressing Geographic idea Information System (Capture all physical addresses in the spatial database linked to National Identification Information database) Sustainable 54. GKMA High density NDPIII project Private, 2020/21 2024/25 Urbanisation affordable housing idea PPP and Housing 55. Redevelopment of Slums Ongoing Private, 2019/20 2023/24 and Informal Settlements PPP Project Human Capital 56. Develop a Centre of Feasibility Public 2020/21 2024/25 Development excellence for cardiovascular services 57. Develop 2 regional Feasibility Public 2020/21 2021/22 oncology centres (Gulu and Mbarara centres) 58. Health Facilities NDPIII Project Public 2020/21 2024/25 Functionality and Referral Idea system Project. (equip referral hospitals and increase functionality from the current 55% to 75%) 59. Multi-sectoral community NDPIII Project Public, 2020/21 2024/25 Health Promotion & Idea Private Prevention Project 60. Basic Requirements and NDPIII Project Public, 2020/21 2024/25 Minimum Standards Idea Private (BRMS) for education institutions. (Quality enhancement actions like increasing the number of class rooms, reading materials, both primary and secondary schools, increasing the STEM/STEI physical infrastructure and transformation of stem research into commercialised products and services) 61. Skills for Employment and NDPIII Project Public 2020/21 2024/25 Productivity. (uplifting the Idea private TVET institutions lagging in terms of infrastructure to minimum functionality, incentives to the private sector to provide a apprenticeships, provision of seed capital in kind for young graduates to enhance their take off, provision of the connection to the market) 58 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Programme Core Projects Status Financing Start End Date Date 62. Labour Market Ongoing Public 2020/21 2024/25 Information System project Innovation, 63. Four (4) Science and Concept Public 2020/21 2024/25 Technology Technology Parks Private Development 64. Forty (40) Technology and Concept Public 2020/21 2024/25 and Transfer Business Incubators (TBIs) Private Community 65. National Service Scheme Concept Public 2020/21 2024/25 Mobilisation 66. Establishment of the Concept Public 2020/21 2024/25 and Mindset National Productivity centre Change (GKMA and Regional Cities) 67. National apprenticeship Concept Public 2020/21 2024/25 scheme 68. MSMEs Nurturing for NDPIII Project Public 2020/21 2024/25 Youth Employment Project Idea 69. Labour Intensive Public NDPIII Project Public 2020/21 2024/25 Works Idea 125 Overall, a total of 69 core projects have been identified for the NDPIII. Of these, 16 are ongoing projects that reflect the need to complete unfinished work during the NDPII period. 51 are new NDPIII project ideas that are at different levels of preparedness. In particular, these projects have been identified along the NDPIII programmes. Preparation of these projects must be fast-tracked and utmost finalized in the first year of NDPIII, for effective implementation. 126 The plan identifies several reforms to inform review of the design and implementation architecture for development projects. These reforms during the NDPIII include the following: (i) Projects under the Regional Development Programme will be developed through a participatory and consultative process with the beneficiary Local Governments in the target regions during the first year of the Plan implementation. With the support of NPA and MFPED, relevant Central Government Departments and Agencies together with the Local Governments and other stakeholders will, as part of project preparation phase, reach consensus on particular enterprises that have direct bearing on enhancing household incomes. (ii) Under the agro industrialization programme, there is need to review projects design to consider projects that address the entire value chain for priority commodities. Specifically, the agriculture sector needs to review the structure of project design to have a value chain approach focusing on specific agricultural commodities countrywide. This will generate increased focus to addressing the peculiar aspects of specific value chains. There should be a few projects that are not of a specific commodity value chain nature especially those that are cross cutting in nature. For example, projects addressing fertilizer production, mechanization, and markets among others. (iii) Harmonize all projects under water for production into a single country wide project with specific performance indicators and targets. There more than ten 59 59 NATIONAL PLANNING AUTHORITY projects under the water sector focusing on water for production. These projects are spread thin and it is challenging to measure their performance and the underlying challenges they sought to address still remain. As a result, the Plan envisages the need to harmonize the structuring and reporting for these projects. There should be a single project on irrigation that focuses on different regions and standard performance indicators identified on level of access to water for irrigation. (iv) Consideration has been given to the need for regional balance. As a result, particular project ideas have been identified focusing primarily on addressing income poverty in areas where poverty is highest. These projects have been highlighted under the regional development programme and will thus need to be fully developed, financed and implementation fast-tracked within the first year of the NDPIII. Further, the identification of projects within the various programmes considered the need for regional balance. (v) Core projects will be given priority during the plan period and will thus take a first call on resources. As a result, fast-tracking the finalization of required studies and sourcing of financing for implementation will be high on the agenda of Government for the first year of the NDPIII. 127 The project preparation fund under the Ministry of Finance Planning and Economic Development will be expeditiously operationalized to finance studies for NDPIII core projects. Mechanisms for financing the preparation of required studies for NDPIII core projects shall be strengthened also in line with the PFMA, 2015 and the Public Investment Management Policy instruments. 60 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 PART III: DEVELOPMENT PROGRAMMES CHAPTER 5: AGRO-INDUSTRIALIZATION

5.1 — Introduction

5.1 Introduction 128 Given the dominance of agriculture as a source of livelihood, Agro-Industrialisation (AGI) offers a great opportunity for Uganda to embark on its long-term aspiration of increasing household incomes and improving the quality of life. First, AGI presents an avenue for promoting inclusive and equitable growth. Second, Uganda has a positive trade balance in agro-industrial products. Third, it provides an opportunity to add value to agricultural raw materials in order to promote export expansion of high value products. Fourth, it provides an opportunity for import substitution. Fifth, it provides an opportunity to address the high post-harvest losses, minimize losses to disasters, stabilize prices and increase household incomes. Additionally, the backward and forward linkages between agriculture and agro-industries will necessitate that Uganda sustainably transform agro- value chains to ensure sufficient supply for domestic industries to undertake transformative sustainable manufacturing while creating employment for its citizens. 129 The aspiration of Agenda 2030 (SDG2, and 9), is to end hunger, achieve food security, improve nutrition and promote sustainable agriculture as well as promoting inclusive and sustainable industrialization and foster innovation. SDG 8 also seeks to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. Similarly, Agenda 2063 (Goal5) aspiration is to have modern agriculture for increased production and productivity. Relatedly, the EAC Vision 2050 seeks to promote value addition through agro-processing. The AfCFTA aims to create a single market for goods and services facilitated by movement of persons in order to deepen the economic integration of the African continent. This is an opportunity for Uganda to exploit its agro-industrialization agenda in order to feed the global value chain. The Uganda Vision 2040 puts emphasis on the establishment of economic lifeline industries including agro-based industries to drive agriculture productivity. 130 However, there is still a high proportion of the population dependant on subsistence agriculture majority of whom are rural women and youth due to: (i) low agricultural production and productivity; (ii) poor storage infrastructure; (iii) poor market access and low competitiveness for products in domestic, regional, continental and international markets; (iv) low value addition; (v) limited access to agricultural financial services and critical inputs; and (vi) poor coordination and inefficient institutions for planning and implementation of agro-industrialization. 131 The goal of this programme therefore is to increase commercialisation and competitiveness of agricultural production and agro-processing. 132 The key results to be achieved over the next five years are: (i) Increase the total export value of processed agricultural commodities; coffee, tea, fish, dairy, meat, and maize (and its products) from; USD 0.935 Billion to USD 2.7 billion; 61 NATIONAL PLANNING AUTHORITY (ii) Reduce the total value of imported cereals and cereal preparations, vegetable fats and oils, and sugar preparations from USD 931.1 million to USD 500 million; (iii) Increase the agricultural sector growth rate from 3.8 percent to 6.0 percent; (iv) Increase labour productivity in the agro-industrial value chain (value added, USD per worker) from USD 2,212 to USD 3,114; (v) Increase the number of jobs created per annum in agro-industry along the value chain by 180,000; (vi) Reduction in the percentage of households dependent on subsistence agriculture as a main source of livelihood from 68.9 percent to 55 percent; and (vii) Increase the proportion of households that are food secure from 60 percent to 90 percent.

5.2 — Situation Analysis

5.2 Situation Analysis 133 The agricultural sector registered improved growth rates over the last five years averaging 3.4 percent per annum. Notable improvements were especially observed in the food crops sub-sector (maize, cassava and bananas) that grew at an average of 3.7 per cent. The cash crop sub-sector (coffee, cocoa, cotton, tea) averaged growth rates of 6.4 percent. The livestock sector was the least performer and grew at 2.1 percent. The fisheries sub-sector recovered from a slump of -2.1 percent in 2017/18/ to grow at 11.3. percent in 2018/19, due to strict enforcement of fishing regulations. However, the agricultural sector growth rate falls short of the 6.0 percent targeted under the Vision 2040 and NDPII partly due to increase in inter-seasonal and annual climate variabilities arising from climate change. On inter-seasonal and annual climate variabilities arising from climate change, agriculture has registered the greatest dampening effect on overall growth and employment rate. A large share of employment in the agricultural sector is informal, 71 percent of the few formal agricultural businesses employ less than 5 employees, while 20 percent of them have between 5 to 9 employees. The low agricultural labour productivity levels is partly attributed to Uganda’s high agricultural employment per hectare of arable land. 134 To foster a sustainable agro-industrialization agenda in Uganda, this programme has selected ten commodities; coffee, tea, fisheries, cocoa, cotton, vegetable oil, beef, maize, dairy and cassava. Maize, cassava, dairy and fish are prioritised for their significant benefits on food security and nutrition. In particular, cassava is prioritized due to the ease with which it can be produced massively, drought resistance, potential for multi-industrial use and food security. Once mature, cassava can be stored up to two years underground, a key factor to mitigate against seasonal effects. Coffee, tea, fisheries, cocoa, cotton, vegetable oil, beef, maize, dairy are prioritized because of their impact on exports earnings (Table 5.1). For these commodities, there is existing production capacity. For instance, in 2017, fisheries production was 461,000MT and 110,000MT from aquaculture. Beef production was 211,358MT. Tea production was 39,299MT. Coffee production was 302,063 MT. Cassava and Maize production equalled 302,000MT each. Milk production was 2.5 billion litres (2018). Other commodities such as rice, beans, fresh fruits and vegetables, bananas, potatoes, other cereals, legumes, roots and tubers will continue to be supported as usual. 62 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Table 5.1: Uganda’s top 10 agricultural products exports by shares of total exports (percent), 2018 S/N Commodity percent share of total exports 1 Coffee 10.5 2 Fish and fish products 5.9 3 Dairy 3.4 4 Horticulture 2.6 5 Tea 2.2 6 Cocoa 1.9 7 Maize 1.7 8 Cotton 1.4 9 Vegetable oil 1.1 10 Bananas 0.2 Source: BOU, UBOS (2019) 135 Despite a huge market potential for the prioritised products, the country’s capacity to satisfy the market demand remains inadequate. This can be attributed to a number of factors which are analysed below following the agricultural value chain: 136 Agricultural production and productivity is generally low. Despite Government’s efforts to provide inputs and extend credit to farmers by providing funds to non-profit associations (such as SACCOs) as well as provision of financial education, a large number of households remained outside the market/money economy. This is largely because some households, particularly women and youth, do not have access to arable land. In addition, there is are inadequate skills for maximizing land productivity and limited adoption of improved agricultural technologies. Furthermore, there are continued land wrangles and threats on land rights including arbitrary land evictions especially affecting the youth and women. The lack of land security and tenure for many farmers is an impediment to efficient agricultural productivity. 137 There is a wide gap in yields between research stations and farmer fields. Increase in total production is largely attributed to growth in land and labour use in agricultural production than to technical change. There is a wide gap in yields between research stations and farmer fields (Table 5.2). This is more pronounced in dairy, fish and fish products, cassava and maize. Table 5.2: Comparison of yields on farm versus research stations Commodity Average farm yields Potential yields as at (tons/ha) research stations (tons/ha) Maize 2.3 8.0 Coffee (output million bags - 60kg) 1.4 2.5 Tea 1.65 2.1 Fish and fish products 1.5 23.2 Cassava 3.3 20.0 Dairy (milk in million litres) 1.5 24.0 Beef 0.15 0.9 63 63 NATIONAL PLANNING AUTHORITY Commodity Average farm yields Potential yields as at (tons/ha) research stations (tons/ha) Oil palm 18.0 20.0 Fruits and vegetables. e.g. tomatoes 45.0 80.0 Source: UBOS 138 Coffee production and productivity is limited by dominance of small holder farmers using traditional methods, low acreage per farmer, small number of trees per hectare and low yield per tree. 53 percent of the coffee is produced by small holder farmers using traditional methods. These constitute 67 percent of the total number of coffee farmers. 35 percent is produced by farmers using improved methods. These constitute 28 percent of the total farmers. Commercial farmers produce only 10 percent, constituting 5 percent of the total farmers. Plantations produce only 2 percent. Two thirds of the Robusta coffee farmers harvest less than 0.5kg per tree and for Arabica farmers 0.62kg. About a third of all coffee farmers have less than 200 coffee trees. Coffee farmers grow less than the recommended density of 1100 trees per hectare for Robusta and 1600 for Arabica. 139 Despite enormous agricultural production potential in maize, tea, beef and dairy products, and fish, it is under-exploited. Maize production is affected by over reliance on traditional farming practices, use of low yielding varieties, small farm size and limited access to finance. Tea production potential is enormous; however, it is constrained by limited research in high yielding varieties. Production of beef and dairy on the other hand, is constrained by the quality of breeds and the livestock numbers as well as water shortages and scarcity of feeds during drought. Milk production is dominated by small- holder farmers who own over 90 percent of the national herd. Fish production is mostly affected by over-reliance on capture fisheries with limited investment in aquaculture. The deteriorating quality of water sources resulting from aquatic pollution coupled with weak enforcement of regulations has also resulted in decline in fish stocks. 140 The agricultural production is weakly supported by services (such as extension, entrepreneurial training, R&D, innovations, regulation of agricultural inputs, and reliable weather information) to sustainably back the agro-industries. Only 4 percent of all Ugandan farmers use a full package of production enhancing technologies (a combination of fertilisers and improved seeds) and supportive services. In addition, most farmers do not practice farming as a business due to limited entrepreneurial skills and have limited risk mitigation measures such as agriculture insurance and irrigation. Despite realization of 70 percent government staffing levels for extension workers, the extension system is weak. Often, agricultural products for farming are not of the right quality and variety. Consequently, production remains low, hindering the sustainable supply of raw materials to agro-industries. Therefore, in addition to strengthening the agricultural extension system from the research stations to the farm, cooperative colleges and colleges of commerce should be engaged to inculcate entrepreneurial and cooperative/grouping skills to the farmers and the communities at large. 141 Agricultural production is also constrained by limited access to agricultural financial services and critical inputs. Considering the supply side of development finance, public funding for agro-industry is inadequate. There are various government initiatives meant to support AGI development. However, these initiatives are scattered among different 64 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 agencies, are uncoordinated and non-transformative. Another important supply of development financing is through the development partners. But, increasingly the support is channelled through projects rather than programmes. Project financing is short term in nature and acts in a silo approach along the value chain. As such, it cannot be a source of a sustainable AGI agenda. Additionally, financial institutions are focusing on the low risk, high cash flow and well collaterised segment of the value chain i.e. agro-manufacturing, leaving the high-risk agricultural production under-served. This partly affects the capacity to finance investment for raw material production and in turn the linkage between production and agro-industries. 142 To increase productivity of agriculture encouraging and organizing small-holder farmers into groups is crucial to enable them collectively address challenges they face. Uganda’s agriculture sector is dominated by small-holder farmers, on average each holding about 2.5 acres of land. These small-holder farmers are very efficient, given the right conditions their productivity will improve. But unless they are grouped, their productivity cannot be sustainably improved. The individual capacity of the farmers to address challenges they face is limited. Nonetheless, this capacity increases if the farmers form a group around entrenched productivity enhancing cooperative principles. 143 Post-harvest handling and storage of agricultural commodities has generally improved. Community storage facilities, modern grain processing equipment and cold chain infrastructure for dairy have been developed. However, Uganda still has a shortage of standard and modern storage facilities which leads to use of poor-quality storage and subsequently deterioration in quality of the products. Uganda’s post-harvest losses range from 30 to 40 percent for grains and other staples, and 30 to 80 percent for fresh-fruits and vegetables. Cooperative colleges and colleges of commerce should be engaged to enhance the promotion of buffer stocking and marketing. 144 For agricultural production to increase, farmers should be equipped with skills through modular and hands-on training for market-oriented production. Crop and animal husbandry programmes that are being conducted by BTVET institutions and especially farm institutes and colleges, albeit on a small scale, should be cascaded to reach more farmers especially the most marginalised to ensure that they start engaging in sustainable agricultural production for the market. In addition, the capacities of community institutions that are engaged in mechanical and woodwork, welding and metal fabrication and construction of farm structures should be engaged to repair farm implements and also produce the requisite food processing implements like coffee hurling implements, fish driers, seed driers, animal feed mills and fruit processing implements for value addition and enhancement of competitiveness in the market. The BTVET institutions that have substantial acreages of land should be utilised as incubation centres. 145 There has been mixed progress in agro-processing. The contribution of agro- processing to total manufacturing has increased from 20.7 percent to 39.3 percent. However, most of the agro-processing industries are operating below installed capacity: Coffee (40 percent); Fish (less than 30 percent); Dairy (the 9 largest are operating at 57 percent of their capacity, with the overall average utilisation of installed capacity being 66 percent); Tea at 60 percent and Beef (less than 20 percent). Most maize mills (46.3 percent) have a capacity of 1-5 tonnes per day but many operate far below the installed 65 NATIONAL PLANNING AUTHORITY capacities with a seasonal dimension. This is mainly due to; insufficient supply of raw materials, poor transport infrastructure and high costs of energy, as detailed below: (i) Over 95 percent of coffee is exported as raw unprocessed beans. There is limited value addition at farm level and farmers continue to sell unprocessed coffee leading to lower earnings. This is partly explained by the limited capacity to undertake investment for value addition. Currently coffee value addition entails off farm processing, export grading and marketing with limited roasting and consumption. A large percentage of coffee is exported to re-exporting countries. (ii) While there are over 30 operating tea factories in Uganda (mostly privately owned), they operate below capacity. Government in partnership with Kigezi Highland Ltd completed construction of two tea factories in Kabale and Kisoro. However, most of the tea processing facilities are concentrated in a few areas. Some tea growing areas such as West Nile and central Uganda have no processing facility at all. Uganda produces mainly black tea processed by Cut, Tear and Curl (CTC) factories. (iii) Fish processing capacity in Uganda is in primary processing, all 12 fish processing plants process only fish fillets, minced fish, salted and dried/smoked fish. There is no plant undertaking secondary processing of fish into fish soluble, fish silage, fish meal fish oils and cutlery fish products, due to high capital requirements. Only one firm, Uganda Fish Skin Tannery, processes fish skin into leather for export. Fisheries waste, from which isinglass and pharmaceuticals could be manufactured is wasted. (iv) Progress has been made in domestic production of vegetable oil and its by- products. This is attributed to increase in raw materials for oil seed production (soya beans and palm), increased investment in the processing industries by the private sector, and extension of credit. However, there is still inadequate access to vegetable oil-processing facilities. (v) The capacity for dairy processing has improved but processing plants are working below installed capacity. The number of dairy processing plants has increased from 79 with processing capacity of 1.9 million litres in FY 2016 to 102 with processing capacity of 2.7 million litres per day (40 percent of the total milk produced) in 2018. These processing plants only utilize between 40 and 60 percent of their installed capacity implying a challenge of limited access to domestic and international markets. (vi) Beef processing is hindered by supply and other logistical challenges. Government in 2016 launched one of the largest beef processing plants in Africa, worth an annual turnover of 10 million USD with a processing capacity of about 400 animals in a single shift and a holding capacity for nearly 5000 animals. However, after making its maiden beef export of 50 tonnes to Egypt, the company has been hit by inadequate supply of raw materials. In addition, most of the beef is consumed domestically. 66 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 (vii) Value addition to cassava in Uganda is low. Most processors mill cassava into flour and package it for local consumption. However, there is potential for import substitution of starch and ethanol if there is more value addition to cassava. Of all the imported starch and ethanol, 53 percent is for pharmaceutical industries, 32 percent for paperboard industries, 13.5 percent for food processors and 1 percent for laundry operators. (viii) The maize industry is supported by small and medium-scale millers. There are 780 maize milling plants in Uganda mainly concentrated in central region (38 percent), with maize flour being the main product. The other processed maize products for the domestic products include; animal feeds, cornflakes, dog feed and blended flours. While there are EAC harmonized standards for maize industrial products, local industrialists are unable to meet them due to; poor post-handling technologies, limited use of quality processing equipment and limited fortification. 146 Some progress has been made in marketing and export of agricultural products. Whereas agricultural finance, improved production methods and technologies can be an effective tool for combating poverty, it cannot create the desired impact if the farmers are not engaged in production for the market. There was development of contractual marketing arrangements which increased capacity of smallholders to access formal grain markets. Intermediate supply chain management models were also developed to link the smallholder farmers to the large-scale processors. For example, the emergence of agricultural cooperatives in value addition and marketing of agricultural commodities such as Bugisu Coffee Cooperative Union (BCCU), Uganda Crane Creameries Cooperative Union (UCCCU). These achievements notwithstanding, ninety percent of the total agricultural marketing system remains low value i.e. largely an informal system serving lower-income consumers in domestic and international markets. The high value markets which are formal, engage in more processing, stronger quality controls and target higher-income consumers from domestic and export markets are limited to a few commodities (dairy, vegetable oil, tea). 147 The share of Uganda’s agro-industrial products in the global market is only 0.17 percent competing with countries that are highly integrated in the global value chains. However, Africa as a regional market has already overtaken the European Union (EU) to become Uganda's most important trading partner, with trade shares increasing from around 22 percent in 1995 to more than 30 percent by 2018. In terms of export values, Uganda now exports over 50 percent of its total exports to Africa, far higher than the shares of other East African countries, highlighting the importance of the AfCFTA to Uganda (Figure 5.1). 67 NATIONAL PLANNING AUTHORITY Figure 5.1: Uganda, Intra-African and Trade Partners’ Trade Shares, 1995–2017 Source: UNECA, 2019. The AfCFTA – Impact Assessment for Uganda 148 Increasing and sustaining Uganda’s market share in the current markets (AfCFTA, China, EU, and the Middle East) is crucial for the agro-industrialization agenda. Uganda stands to be a large beneficiary of the AfCFTA in Eastern Africa, with exports to the rest of Africa increasing by USD 199 million. AfCFTA is the lead market for a majority of agro-industry products including; tea, fisheries, vegetable oil, beef by- products, maize, dairy and cassava. China is also a crucial market because it is very big and growing. It is suitable for the export of poultry, beef, dairy, fish and its products, hides and skins (wet blue), cow horns, processed coffee, semi-processed cotton, sesame (simsim), and cocoa. European Union is a traditional market where contacts exist and products are known. It is a good market for the export of fish, coffee, cocoa, and flowers. It is also a stable high-income market. Our products have been offered access concessions through WTO and the Economic Partnership Agreement. The Middle East is a stable and dependable market for the export of livestock and its products (beef, goat, dairy and poultry); as well as fruits and vegetables (pineapples, apple bananas, and avocadoes). 149 For Uganda to sustain and increase its market share, challenges of complying with Non-Tariff Measures (NTMs) such as sanitary and phytosanitary measures, international quality certification, reliable supply capacity and inability to adhere to international standards need to be addressed. Other challenges include: poor market information systems; poor market infrastructure in rural and urban areas, including logistics facilities for product marketing and distribution; poor analysis, negotiation and development of international market opportunities. 150 For agro-industrialisation to work, there is need for a mechanism to coordinate the value chain players but also ensure that the services and resources are delivered to facilitate the AGI agenda. AGI cuts across the mandates of several Ministries, Departments and Agencies (MDAs) which are not properly coordinated. Additionally, there are other constraints to AGI like: i) cobweb of policies and Acts (over 25 policies and over 20 Acts exist under MAAIF and MTIC) directly impacting AGI; ii) government’s response to institutional failures by creating parallel institutions; iii) inadequate and poorly sequenced financing; iv) Limited policy evaluation that is manifested in the low levels of monitoring and evaluation that in turn impede learning for 68 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 improvement; and v) the multiplicity of weakly coordinated and inadequately developed support services, including; patient capital (or finance), business infrastructure, land, insurance, and Research and Development (R&D). 151 Focus of AGI over this NDP period will be to address critical challenges along the value chain for the selected commodities. For the ten commodities selected for AGI, the value chain will be analysed and fully development to fully meet both domestic and external market requirements. The approach will be to build on investments already made along the value chains and address the challenges limiting the realization of full potential of an AGI commodity.

5.3 — Programme Objectives

5.3 Programme Objectives 152 In order to address the above constraints, the objectives of this programme are to: 1) Increase agricultural production and productivity; 2) Improve post-harvest handling and storage; 3) Improve agro-processing and value addition; 4) Increase market access and competitiveness of agricultural products in domestic and international markets; 5) Increase the mobilization and equitable access and utilization of agricultural finance; and 6) Strengthen the institutional coordination for improved service delivery. 153 Achievement of these objectives will be pursued through interventions along the agricultural value chain in the seven major export and income generation commodities as well as the four food security commodities (Map 5.1). These commodities have been chosen using the area based agricultural planning approach to ensure all agro-ecological zones are covered (Map 5.2). 154 Under this approach, the selected commodities follow area-based commodity clusters approach in which a given commodity cluster consists of districts near each within a zone that produce the similar commodity and exhibit complementarities in agroecological conditions, socioeconomic characteristics and infrastructure investment needs. An area- based commodity cluster will concentrate various value chain actors; producers, processors, agribusinesses, financial agents and public institutions that are engaged in the same agricultural commodity or agro-industrial subsector around opportunities, infrastructure and services to exploit these resources and address common challenges. 155 The area-based commodity clusters will serve as regional aggregation centres for raw materials and provision of infrastructure and facilities for primary processing, value addition and marketing including; post-harvest handling, storage, grading, sorting, bulking, distribution, etc. Through aggregation of farmers around a common facility or service, the clusters will also help farmers to become production specialists through provision of inputs and services required to increase quantity, improve the quality and consistency of production. 69 NATIONAL PLANNING AUTHORITY

5.3.1 — Interventions

5.3.1 Interventions 156 In order to achieve the above objectives, NDPIII will prioritise the following interventions under this programme: Table 5.3: Agro-industrialization Programme Interventions and Respective Actors Interventions Actors Objective 1: Increase production and productivity 1) Strengthen agricultural research and technology development: MAAIF, MOICT, NITA- a. Invest in new and rehabilitate old infrastructure for agriculture research U, NARO, Universities, including labouratories, offices, technology demonstration and training Academic and vocational centres, etc. institutions, Professional b. Undertake strategic recruitment and training agricultural research staff bodies, International c. Strengthen research standards and quality assurance through formulation of research organizations, regulations and enforcement. CSOs, Public Research d. Establish climate smart technology demonstration and multiplication centres organizations at all the ZARDIs and BTVET institutions engaged in agroindustry programmes for technology dissemination and commercialization. e. Establish and strengthen linkages between agricultural research institutions, BTVET institutions engaged in agro-industry and agro-industry enterprises. f. Upscale research on biofortification and the multiplication of nutrient dense food staples such as beans, cassava and sweet potatoes, rice, among others. 2) Strengthen the agricultural extension system MAAIF, NARO, a. Operationalize agricultural extension system. MoICT&NG, MoLG, b. Develop and operationalize an ICT-enabled agricultural extension UCDA, DDA, supervision and traceability system. NAGRC&DB, CDO, LGs, c. Scale-up innovative extension models such as nucleus farmers in all agro- Extension service ecological zones. providers, Private sector d. Incorporate BTVET institutions into the agricultural extension system to companies, MDAs, NGOs ensure that what is taught in these institutions is adopted and utilised by farmers. BTVET institutions with large acreages of land to be used as demonstration centres. e. Strengthen the research-extension-farmer linkages to increase uptake of new climate smart technologies. f. Develop and equip youth with knowledge, skills and facilities for access and utilisation of modern extension services. 3) Strengthen the agricultural inputs markets and distribution systems to adhere to MAAIF, OWC, NAADS, quality standards and grades UNBS, LGs, UCDA, a. Setup and equip farm service centres within the public service e-service DDA, NAGRC&DB, centres for bulk input procurement, storage and distribution. CDO b. Strengthen licensing procedures, inspection, certification, import processing and regulation for improved inputs and new seed varieties c. Reform the current input subsidy programme including: Scaling up the e- voucher model of inputs distribution d. Establish and equip 9 regional mechanization centres to increase uptake of agricultural mechanization and labour-saving technologies e. Enforce pre-export verification for all agricultural inputs at source of origin. 4) Increase access and use of water for agricultural production MAAIF & MWE, MEMD, a. Complete the irrigation schemes under construction/rehabilitation including; Farmers, Cooperatives and Doho Phase II, Mubuku Phase II, Wadelai, Tochi, and Olweny associations, UIA, Private b. Construct new irrigation schemes; Ngenge, Acomai, Atari, Amagoro, Sector, MTIC, MoFPED, Nabigaga, Rwimi, Nyimur, Musambya, Kibimba, Kabuyanda, Matanda, UMFSC, BOU Igogero, Angololo, Namatala, Namulu, Sipi, Unyama, Lumbuye, Palyec, Porongo, Lopei and Imyepi. c. Develop solar-powered small-scale irrigation systems for small holder farmers outside conventional irrigation schemes. 70 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors d. Develop infrastructure and services for bulk water storage and transfer including water abstraction systems, transmission mains, water pumping systems, storage tanks, water distribution networks. e. Promote water use efficiency in agricultural production. 5) Increase access to and use of agricultural mechanisation MAAIF, MTIC, a. Expand and equip regional agricultural mechanisation and service centres in Universities, private the 9 agroecological zones. sector, vocational b. Establish agricultural mechanisation manufacturing plants. institutions c. Establish appropriate public and private financing options for agricultural mechanisation. 6) Increase access and use of digital technologies in agroindustry MAAIF, MoICT, NITA-U, a. Empower youth to use ICT in developing agro-enterprise innovations; UCC, UCDA, DDA, b. Develop ICT modules that can improve extension services and delivery of NAGRC&DB, CDO, government input support. NARO, NAADS 7) Improve land tenure systems and land security mechanisms that promote inclusive MAAIF, MLHUD, ULC, agriculture investments: NARO, NAGRC, UCDA, a. Increase the number of farmers with titled land to ensure land tenure security CDO, DDA, NAADS with special attention to the youth, women, PWDS and other vulnerable groups; b. Promote the policy of non-fragmentation of Agricultural land among family members in all agro-ecological zones; c. Secure and efficiently use public agriculture farmlands and ranches; d. Promote innovative land lease models to enable youth access and sustainable use of land. 8) Strengthen farmer organizations and cooperatives: MAAIF, MTIC, UCDA, a. Sensitize farmers on the benefits of cooperating; DDA, NAGRC&DB, b. Support up-coming farmer groups and cooperatives to effectively manage CDO, NAADS, OWC, themselves; LGs, Farmers, c. Engage cooperative colleges and colleges of commerce to inculcate Cooperatives and cooperative and entrepreneurial skills to the farmers and farmers groups; associations d. Empower youth to form cooperatives. 9) Strengthen systems for management of pests, vectors and diseases: MAAIF, MOH, NARO, a. Develop and equip infrastructure and facilities for disease diagnosis and Private Sector e.g Maama control; Care b. Develop human capacity for management of pests, vectors and diseases; c. Invest in agricultural drugs manufacture and distribution. 10) Promote sustainable land and environment management practices in line with the MAAIF, NFA, MLHUD, agroecological needs: UCDA, CDO, NAADS, a. Strengthen land, water and soil conservation practices; NARO, NAGRC&DB, b. Introduce and upscale agro-forestry for mitigation and climate resilience; OWC, LGs c. Reduce and mitigate emissions from agricultural systems through converting waste to energy and other green technologies; d. Reduce agro-chemical pollution of water and land; e. Undertake soil profiling and mapping; f. Build the capacity of youth to practise climate smart agriculture. 11) Improve skills and competencies of agricultural labour force at technical and MAAIF, MoES, MTIC, managerial levels. UCDA, CDO, NAADS, a. Strengthen training and skilling centres for new skills in agroindustry. NARO, NAGRC&DB, b. Equip (with industrial training machines and tools), adequately fund and OWC, DDA, LGs sufficiently staff (with a focus on academic staff) BTVET institutions engaged in agro-industry to implement agro-industrialization programme c. Review the agricultural education curriculum to suit the agroindustry skill needs, including needs of out-of-school youth and focus other areas beyond agronomy, animal science and extension. d. Increase decision making authority of BTVET institutions to increase relevance of programmes conducted by these institutions for the geographical areas they operate. e. Strengthen the capacity of technical and vocational institutions for training agricultural mechanics and technicians. 71 71 NATIONAL PLANNING AUTHORITY Interventions Actors f. Enable access to technical and vocational training to improve skills in the agro-industry, particularly for women, persons with disabilities and the youth. 12) Strengthen the capacity to collect, report, disseminate and use weather or accurate UNMA, MAAIF meteorological information. 13) Strengthen and develop mechanisms to prevent incidences of child labour within MOGLSD, MAAIF, NAC, the sector and exploitation of the agricultural labour force LGs Objective 2: Improve post-harvest handling and storage 1) Establish post-harvest handling, storage and processing infrastructure including MAAIF, MTIC, UWRSA, silos, dryers, warehouses, and cold rooms of various scale and capacities at NAADS, OWC, DDA, subcounty, district and zonal levels. UCDA, CDO, NAGRC&DB, LGs Private sector 2) Establish regional post-harvest handling, storage and value addition facilities in MAAIF, MTIC, UWRSA, key strategic locations; grain in Jinja; Cassava in Gulu; Dairy in Mbarara; Meat NAADS, OWC, DDA, in Nakasongola; fresh fruits in Soroti; vegetable oil in Kalangala; beverages in UCDA, CDO, Fort Portal, Fish in Mukono and Rice in Butaleja. NAGRC&DB, TGCU, LGs 3) Improve the transportation and logistics infrastructure such as refrigerated trucks MAAIF, MTIC, UWRSA, and cold rooms for priority commodities. NAADS, OWC, MWT, Private Sector Objective 3: Increase agro-processing and value addition 1) Establish eco-friendly fully serviced agro-industrial parks/export processing UIA, FZA, MAAIF, zones to stimulate and expand agro-processing. MTIC, Private Sector 2) Establish a strategic mechanism for importation of agro-processing technology MAAIF, MoES, MTIC, a. Establish a scholarship and apprenticeship programme in strategic agro- MDAs, industries MAAIF, MoES, MTIC b. Establish an exchange programme for practitioners in the agro-industry value MAAIF, Parliament, LRC, chain with countries that have appropriate agro-processing technologies UIA, MOFPED c. Amend the investment law to enable foreign and local investment partnership 3) Establish new and rehabilitate existing agro-processing industries to minimize MAAIF, DDA, MTIC, negative environmental impacts for processing of key agricultural commodities LGs, UDC, NAADS, a. Establish 2 Starch and 3 ethanol processing factories from cassava in Gulu, PSFU, OWC, UCDA, Tororo and Lira CDO, MTIC, MOH, NDA, b. Support existing cereal processing facilities to add value for import NAGRC&DB, NARO, substitution Academia, MoFPED, c. Complete the Uganda Crane Creameries Cooperative Union in Mbarara milk UDC, UDB, Private sector processing plant with a capacity of 500,000 litres per day d. Complete Kayonza, Mabale and Zombo tea factories e. Establish a fertilizer blending factory in Mbale f. Establish two soluble coffee plants and 20 coffee washing stations in central and eastern Uganda g. Establish five new and expand the existing 2 spinning and textile mills h. Establish 10 new garment making factories in cities i. Establish 2 new vegetable oil mills in Lira and Kiryandongo and expand the vegetable oil refinery in Jinja j. Upgrade Soroti fruit factory and establish 5 more fruit factories including; Masaka, Arua, Kanungu, and Bundibugyo k. Establish meat processing factories in Nakasongola and Mbarara l. Establish fish processing factories in Mukono, Jinja, Kamuli and Serere m. Complete Atiak Sugar factory and construct a farmer-based sugar factory in Busoga n. Establish a rice processing factory along the entire value chain in Butaleja o. Establish a cocoa processing factory in Bundibugyo p. Establish youth led agro processing facilities focusing on incubation and demonstration centres q. Enforce micronutrient industrial food fortification of the already identified food vehicles. 4) Provide affordable, adequate and reliable electricity in the various production UEDCL, ERA zones of the country 72 72 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Interventions Actors Actors 5) Construct and regularly maintain community access and feeder roads for market MWT, MAAIF access 6) Improve skills and competencies of agricultural labour force at technical and MoES, MAAF, managerial levels in post-harvest handling, storage and value addition MTICUCDA, CDO, DDA, NAGRC&DB, NAADS, OWC Objective 4: Increase market access and competitiveness of agricultural products in domestic and international markets 1) Strengthen enforcement and adherence to product quality requirements UNBS, MAAIF, MTIC including; food safety, social and environmental standards, grades, etc. a. Enforce product certification; b. Train farmers and manufacturers on sanitary and phytosanitary standards c. Renovate, build and adequately equip certification laboratory facilities in various strategic locations; d. Regulate cross border informal trade in agro-products. 2) Digitalize acquisition and distribution of agricultural market information MAAIF, MICT, MTIC, a. Develop and implement an integrated agriculture market information MOGLSD, UEPB, NITA- system; U b. Empower and institutionalise youth participation in the agro-industry value chain especially focusing on packaging and marketing. 3) Improve agricultural market infrastructure in rural and urban areas MAAIF, MoLG, MTIC, a. Develop infrastructure and facilities for rural and urban agricultural markets UWRSA, UCE at district and community levels to meet quality standards. Develop urban agricultural markets in all districts b. Revitalize the warehouse receipt system; c. Revitalize the commodity exchange system. 4) Improve transportation and logistics facilities for effective product marketing MAAIF, MTIC, MoWT, and distribution URC, Private Sector, LGs a. Provide incentives for the acquisition of refrigerated trucks and warehouses at boarder points and landing sites b. Complete the rehabilitation of the meter gauge to facilitate connectivity of agro-industries to markets 5) Strengthen capacities of public institutions in analysis, negotiation and UEPB, MAAIF, MoFA, development of international market opportunities particularly for the selected UCDA, CDO, DDA commodities a. Facilitate Uganda’s diplomatic missions to promote Ugandan products abroad Objective 5: Increase the mobilization, equitable access and utilization of Agricultural Finance 1) Finalize and implement the Agricultural Finance Policy MAAIF, MOFPED, BOU, a. Scale up the Uganda Agriculture Insurance Scheme UIRA, UDB, Financial b. Increase the pool of funds available for agricultural lending including women, Institutions, MTIC, LGs youths and rural populations c. Revise the Agricultural credit Facility (ACF) to fund all levels of the agriculture value chains d. Provide incentives to financial institutions to increase agricultural lending 2) Review tax levies and other incentives on agricultural insurance products to MOFPED, MAAIF UIRA encourage uptake by farmers. 3) Facilitate organic bottom-up formation of farmers groups (including youth) and MAAIF, MTIC, UCA, cooperatives (production, collective marketing, provision of financial services, UNFFE and savings mobilization) a. Review legislation aimed at supporting organic bottom-up formation of farmer groups and cooperatives 4) Strengthen existing agricultural commodity price stabilization mechanisms for MOFPED, MAAIF, commodities that are vulnerable to high price fluctuations particularly grains, MTIC, UWRSA, UCE, cotton and dairy. MAAIF, USE, MTIC, a. Scale up the warehouse receipt system and Uganda Commodities Exchange MOFPED, LGs, Private b. Support Uganda Securities Exchange (USE) to complete the development of Sector a commodity segment to trade commodities in addition to equities and bonds 73 NATIONAL PLANNING AUTHORITY Interventions Actors 5) Develop concessional long-term Interventions financing for agricultural infrastructure and Actors UDB, MOFPED, UIA, capital investments UDC, MAAIF, MTIC 6) Support women farmers to transition to agro-business, export trade, and more MAAIF, MTIC profitable agricultural enterprises, including skilling and financial incentives (e.g. reduced credit interest rate and finance) Objective 6: Strengthen institutional coordination for improved service delivery 1) Strengthen linkages between public and private sector in agro-industry MAAIF, MOFPED, a. Strengthen public private partnership models in agro-industrialization MTIC, NAADS, PSFU, CSOs, Private sector, OWC 2) Strengthen coordination of public institutions in design and implementation of MAAIF, OPM, NPA, policies including access to quality food and food security Private Sector

5.3.2 — Implementation Reforms

5.3.2 Implementation Reforms 157 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Develop and implement service and service delivery standards for the sectors. 2) Streamline Operation Wealth Creation (OWC) coordination role into Government systems and legalize it. 3) Incorporate BTVET institutions (engaged in agroindustry) into the agricultural extension system to ensure that what is taught in these institutions is adopted and utilised by farmers. 4) Increase decision making autonomy of BTVET institutions to increase relevance of programmes conducted by these institutions for the geographical areas they operate in. 5) Promote joint planning and implementation of projects and other interventions in agro- industrialization. 6) Establish the Agro-industrialization Programme Technical and Steering Committees to lead and coordinate the implementation of the programme. 7) Revitalize the warehouse receipt system, and the commodity exchange system 8) Operationalize the parish model. Under this model, farmers will be organized and supported to increase production/productivity, bulk and market agricultural produce and for data-collection. Parishes will be used as the centres for delivery of production, marketing and financial services to farmers. 74 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Map 5.1: Mapping of selected agricultural processing and supporting infrastructure 75 NATIONAL PLANNING AUTHORITY Map 5.2: Mapping of selected agricultural commodities to Agro-ecological Zones 76 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

5.3.3 — Programme Human Resource Requirements

5.3.3 Programme Human Resource Requirements 158 The critical skills and competencies required to fully implement this programme and realise expected goals in the next five years in line with framework of International Standards Classification of Occupations (ISCO) and the UNESCO International Standard Classification of Education (ISCED) are: Bioinformatics Scientists; Agricultural Lawyers; Horticultural Therapists; Hydroponics; Taxidermy specialists; Agri-chemists; Biochemists; Agricultural Entomology specialists; Agriculture Microbiology Specialists; Food microbiologists; Agriculture Microbiology Specialists; Food microbiologists; Ornamental Horticulture specialists; Soil Science specialists; Weed scientists; Food Technology and Processing specialists among others. Table 5.4 details the status of the availability of skills in short supply whose training is not available in Uganda and skills in short supply with training available in Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 5.4: Qualifications and Skills Gaps for Agro Industrialisation Programme Qualifications and Skills Status Estimated 5-Year Gap Agricultural Lawyer 896 Horticultural Therapists 1,135 Hydroponics 795 Taxidermy specialists 1,051 Bioinformatics Scientist 1,953 Agri-chemists 598 Biochemists 1,355 Agricultural Entomology specialists 1,140 Agriculture Biotechnologists 1,348 Agriculture Microbiology Specialists 1,134 Food microbiologists 1,540 Food Technology and Processing specialists 1,281 Ornamental Horticulture specialists 1,437 Soil Science specialists 1,240 Weed scientists 2,241 Key for the Table Skills in Short supply and Training is not available in Skills in Short supply and Training is in-country country 77 NATIONAL PLANNING AUTHORITY CHAPTER 6: MINERAL DEVELOPMENT

6.1 — Introduction

6.1 Introduction 159 Mineral exploitation is critical for the industrialization process. In addition to their intrinsic, practical value as part of a manufactured product, minerals also have a significant general value to an economy from both a financial, economic and an employment standpoint. Globally, the demand for minerals is increasing. Investing in mineral development will lower the cost of production, increase return on investment and boost the supply of locally manufactured products like cement, iron and steel, and fertilizers. 160 Mineral development is critical for enhancing value addition to minerals as one of the key growth opportunities. It facilitates the resource-based industrialization agenda, articulated by the Vision 2040, through value addition to available minerals, which increases export earnings and creates jobs. Further, sustainable mineral development provides resources that if well utilized can leverage investments in other sectors of the economy and lead to increased household incomes and quality of life. 161 The aspiration of Agendas 2030 and 2063 is to achieve the sustainable management and efficient use of natural resources by 2030 (SDG 15). The EAC Vision 2050 states that “while the exploitation of resource destination can be built on extraction of raw materials, greater benefits can flow from a natural resource management where resources such as minerals are processed locally”. Beyond that, the Uganda Vision 2040 aims at promoting local beneficiation through value addition on the minerals. 162 However, there is limited minerals exploitation and value addition due to: (i) rudimentary mining methods and informality in the mining sector; (ii) inadequate human and institutional capacity to carry out exploration, quantification and characterization activities; (iii) inadequate supporting physical and R&D infrastructure; and (iv) Limited investment in industries that utilize available minerals. 163 The goal of the programme is, therefore, to increase the exploitation and value addition to selected resources for job rich industrialisation. 164 The key results to be achieved over the next five years are: (i) Reduce the value of imported Iron and Steel from USD 370 million to USD 96 million; (ii) Reduce the volume and value of imported inorganic fertilizers by 75 percent from 75,000 tonnes (USD 30 million) to 18,750 tonnes (USD 7.5 million), respectively; (iii) Increase volume and value of refined gold exports from USD 450 million to USD 787 million; (iv) Increase volume of copper produced from 0 to 2, 000 metric tonnes; (v) Increase the number of trained and skilled Geoscientists from 108 to 200; (vi) Increase the value of investment into the exploration and processing of the selected minerals from USD 0.8 billion to USD 2 billion; (vii) Increase contribution of processed minerals to total manufactured exports from 5 percent to 7.1 percent; (viii) Increase the number of jobs created by the programme by 10 percent annually. (ix) Increase the per capita consumption of steel from 13.1 kg (2019) to 30 kg. 78 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

6.2 — Situation Analysis

6.2 Situation Analysis 165 Uganda has a vast potential of metallic mineral deposits, which is under-exploited. These include; Gold, Iron Ore, Zinc, Niobium-Tantalum (or columbite-tantalite), Tin (cassiterite), Copper-Cobalt, Lead, Beryllium, Wolfram, Bismuth bismutite, Chromium, Lithium, Titanium. Nonmetallic minerals include; Bentonite, Diatomite, Kaolin, Limestone, Marble, Vermiculite, Gypsum, Phosphates, Feldspar, Aggregate, Crushed and Dimension Stone, Glass sands, Sand, Clays and Salt. Mineral exploration has indicated the potential for Uranium, Platinum Group Minerals, Nickel, Diamonds and Rare Earth Elements (Figure 6.1 & 6.2). 166 The NDPIII uses a two-pronged approach to develop Uganda’s mineral potential. First, minerals whose quantities and values are known and where studies and work towards their development has already commenced will be fully developed. Towards this, 5 minerals are prioritised for development across the value chain; (Map 6.2). These are: Iron ore, Gold, Copper, Phosphates, and Development Minerals (marble, silica sand, aggregate, and limestone). Second, more studies will be undertaken to ascertain the quantity and quality of the other minerals for development in subsequent plans. 167 As of 2018, over USD 3.392 billion was being spent annually on importation of mineral-based products (Annex 2), which can be produced from locally available minerals. The current investment in mineral exploration is now over USD 1.6 billion. Progress has been made in increasing the total production capacity of cement from 2.3 million metric tonnes in 2015 to 6.8 million metric tonnes in 2018. This has resulted into reduction in cement prices from about USD 12 at its peak to the current price of USD 7 per 50 kg bag. This is, however, still high compared to potential import sources like China where it costs USD 4. Uganda has three gold refineries (AGR, Bullion and Simba) and this enabled the country to register gold exports of USD 450 million. Additionally, the new mineral legislation has provided mechanisms to enhance mineral revenue collection. 168 An organo-phosphate fertilizer processing plant has been constructed in Tororo with an annual capacity of 50,000 tonnes. Local production of fertilizers will lower costs, potentially increase fertilizer utilization from the current 1.5 kg of nutrient per hectare per year compared to 32 Kg/ha in Kenya, 29 kg/ha in Rwanda, and 6kg/ha in Tanzania and ultimately benefit agro-industrialization. 169 Progress has also been made towards the production of sponge iron, with DongSong Group and Tembo Steel Ltd putting up 500,000 and 72,000 tonne capacity sponge iron plants in Tororo and Iganga, respectively. Once completed, these two plants will facilitate the manufacture of iron and steel products from the available iron ore deposits and therefore reduce the country’s import bill for steel products currently valued at USD350 million and increase exports to EAC states, none of which processes iron ore to steel. Additionally, government is planning to support the construction of a sponge iron plant in Muko. 79 NATIONAL PLANNING AUTHORITY Map 6.1: Location of different minerals in Uganda 80 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 170 Airborne geophysical surveys have been undertaken across the country at high resolutions which has led to discoveries of 18 new mineral targets. Streamlining the regulatory framework for mineral development has been undertaken; The Mining and Minerals Policy of Uganda was reviewed in 2018, the review and gazetting of the Mining Regulations in 2019 to facilitate e-Governance of mineral resources, and the enactment of the International Conference on the Great Lakes Region Act, 2017. These provide a framework for mineral certification to combat illegal exploitation. 171 Despite the successes registered in this industry, there are still some challenges that have to be addressed to realize the aspirations of our Vision 2040. There are unexplored and unquantified mineral resources. The airborne geophysical survey of Karamoja, which was a priority is still pending. The discoveries which require promotion and development include: Iron ore reserves, which stand at about 350 million tonnes of confirmed reserve with a resource base of over 1 billion tonnes inferred; Over 1 billion tonnes of marble in Karamoja; 12 million ounces of gold at Wagagai in Busia; 1.7 billion tonnes of graphite of graphite in Orom in Kitgum; 300 million tons of proven reserves of Rare Earth Elements (REE) and an additional 700 million tons of indicated reserves in Makuutu - Buwaaya; estimated 3 billion tons of kaolin and bentonite in Kaiso Tonya; among others. Some of the minerals available in Uganda are yet to be quantified (Map 6.1). 172 The existent land tenure systems warrant adequate and amicable compensation of the land owners before mining or establishing any developments on the land. License holders have to buy surface rights from either the landlords or tenants, and in some instances both parties, which makes the investment costs very high. Furthermore, the land prices are often inflated once owners or tenants get to know certain minerals exist below the ground. There is need to harmonise the existing laws and regulations. 173 Mineral development is also hampered by high costs for exploration and quantification given the unavailability of advanced testing, equipment and state-of-the- art laboratory services; inadequate human resources, infrastructure and a regulatory framework to facilitate exploration and quantification. Although a laboratory has been established and stocked with some equipment, more equipment needs to be acquired and more focus needs to be put on establishing ISO Accredited state-of-the-art laboratory that can ascertain the quality of minerals and inform their appropriate applications. Thus, reviewing and enacting existent laws and regulations (Mining Act 2003, Industrial Licensing Act 1969, Competition Bill, Legal and Industrial Metrology Bills) will highly contribute to regularization and compliance of the miners. 174 In regard to Mining/Extraction, about 80 percent of the subsector is dominated by small miners, using obsolete methods of mining due to lack of capital to invest in the requisite equipment to carry out activities on a large scale. Such mining methods affect miners through exposure to hazardous chemicals like mercury and limits the recovery amount of the fine minerals. The informality of the sector further limits government support and participation in the sector. In addition, there is inadequate human resources especially in the areas of mines inspection and monitoring. Other challenges include: inadequate supporting infrastructure to facilitate mining and value addition; high capital costs for mining operations, inadequate legal and regulatory framework, difficulty in 81 NATIONAL PLANNING AUTHORITY acquiring land for mining, negative social and environmental impacts and inadequate monitoring and inspection of mining operations. 175 Regarding beneficiation and processing, the challenges faced include: Inadequate legal and regulatory framework; Limited investment due to high capital requirement to establish industries that can beneficiate and process minerals; inadequate and inconsistent supply of raw materials; high cost of production due to high energy rates coupled with high transportation costs for minerals where industries are not built close to mining areas; inadequate infrastructure (energy, railway, roads, etc) due to most of the minerals are in remote regions and thus the mining areas are hard to reach; inadequate skilled human resource like geologists, geoscientists, to processing engineers; and limited access to appropriate and clean technology. 176 Regarding Trade and Marketing, there is limited involvement of private sector due to unclear trade and marketing structures and existence of cheap and substandard products through unfair trade practices Mineral related products that could be produced locally are imported due to lack of processing, refining and beneficiating centres in Uganda. This denies the country the revenue and employment that could be registered from such developments. Further to this, the imported products are usually fake and sub- standard which makes Uganda look like a damping site. Some of these products include gold coated jewellery, tiles, glasses among others. Other problems include inadequate quality assurance infrastructure and standards due to lack of state-of-the-art geoscience laboratories; samples of the minerals are flown out of the country for testing resulting in time wasting and increasing the cost of production. In addition, some standards in the minerals industry are not yet developed which leaves a gap against which their quality is meant to be measured, thus giving room for fake and counterfeit products on the market. Price fluctuation also affects trade in minerals due to price volatility of minerals and mineral related products, only risk takers can invest in this industry due to its associated risks. Trade and marketing of minerals and mineral products have not been well structured and regulated. There has been no strategy or enabler to assess and facilitate good mineral transactions. 177 Focus of Mineral Development over this NDP period will be to develop the 5 minerals whose quantities are known and carry out more exploration to ascertain quantities of the other minerals. Towards this, for the 5 identified minerals, NDPIII will build on existing investments along the value chains and address the challenges limiting the realization of full potential of these minerals. For minerals that are suspected and not well quantified and studied more investments will be geared towards quantifying and fully studying the market viability of these minerals, for development in subsequent NDPs.

6.3 — Programme Objectives

6.3 Programme Objectives 178 In order to address the above constraints, the objectives of this programme are to: 1) Increase exploration and quantification of priority minerals and geothermal resources across the country; 2) Increase adoption and use of appropriate and affordable technology along the value chain; 82 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 3) Strengthen the legal and regulatory framework as well as the human and institutional capacity; 4) Increase investment in mining and value addition; and 5) Expand mineral based processing and marketing.

6.3.1 — Interventions

6.3.1 Interventions 179 In order to achieve the above objectives, NDPIII will prioritize the following interventions Table 6.1: Mineral Development Interventions and Respective Actors Interventions Actors Objective 1: Explore and quantify priority mineral resources across the country 1. Establish and equip a dedicated exploration unit, with access to functional MEMD, MFPED, MoPS, laboratories DPs 2. Undertake a detailed exploration and quantification of minerals and MEMD, MFPED, Private geothermal resources in the country Sector, DPs 3. Establish a mineral classification system MEMD, DPs 4. Undertake feasibility studies in priority mineral value chains to guide MEMD, MTIC, MFPED, investment NEMA, NPA, Academia, DPs Objective 2: Increase adoption and use of appropriate and affordable technology along the value chain 1. Organize, formalize and regulate the artisanal and small-scale miners to MEMD, MTIC, LGs, increase investment in the sector, increase adoption of appropriate CSOs, DPs technologies, increase revenue generated, as well as improve the welfare of artisanal and small-scale miners who are largely women and youth. 2. Provide incentives for acquisition of appropriate and clean technology MEMD, MFPED, UIA, URA 3. Promote research and development; MEMD, MSTI, UIRI, MoES, UNCST, NCHE, Academia, DPs 4. Provide training and extension services to ease the adoption of the acquired MEMD, MTIC, LGs, technology; BTVET, NCHE, Academia, CSOs, DPs Objective 3: Strengthen the legal and regulatory framework as well as the human and institutional capacity 1. Review (Mining Act 2003, Industrial Licensing Act 1969, Competition Bill, MEMD, MTIC, MoJCA, Legal and Industrial Metrology Bills) and develop relevant laws and Parliament, Private regulations Sector, CSOs 2. Streamline administrative functions of licensing, inspection and monitoring MEMD, MoPS, LGs of compliance; 3. Develop and implement training and apprenticeship programmes in areas MEMD, MTIC, MoES, identified under 6.3.3 human resource requirements of the programme; MGLSD, UMA, USSIA, DIT, PSFU, CSOs, DPs, Academic Institutions 4. Incentivize private sector to offer industrial training and apprenticeship MEMD, MFPED, UMA, opportunities; UCMP, Private Sector, DPs 5. Strengthen professionalization of geo-scientists and its associated MEMD, MJCA, professionals Parliament, Cabinet a. Develop professional standards and necessary legislations; Secretariat b. Establish a professional registration body 6. Strengthen the capacity to undertake mineral certification, trading, testing, MEMD, MTIC, MoWE, inspection, regulation and enforcement NEMA, LGs, MoIA, URA, UNBS, UPF, UNCE 7. Strengthen monitoring and inspection of mining operations to minimize MEMD, MoPS, LGs negative social and environmental impacts 83 NATIONAL PLANNING AUTHORITY Interventions Actors 8. Require mining companies to enter into Community Development MEMD, LGs Agreements (CDAs) with mining host communities 9. Provide a framework for gender mainstreaming, equity and human rights and MEMD, MoJCA, eradication of child labour in the mining industry MoGLSD, LGs, Development Partners, Parliament, 10. Domesticate appropriate regional and international treaties, conventions, MEMD agreements, protocols which support good governance in the mining industry; 11. Establish and strengthen earthquake, landslides and other geohazard OPM, MEMD monitoring systems; 12. Strengthen capacity to monitor, inspect and enforce health, safety and MEMD environmental provisions; Objective 4: Increase investment in mining and value addition 1. Implement local content in public procurement to use and develop existing MEMD, MTIC, MFPED, mineral potential, particularly in the major upcoming projects like highways LGs, UIA connecting Kampala to the neighbouring cities, Ayago hydro-power generation plant, and regional markets like South Sudan, Democratic Republic of Congo and Rwanda. 2. Establish and equip state-of-the-art mineral testing laboratories; MEMD, MFPED, DPs 3. Extend transport, energy, water and ICT infrastructure to mining areas and MEMD, MFPED, DPs mineral processing facilities/industries; 4. Establish research and development infrastructure; MEMD, MoSTI, MFPED, MTIC, MoES, UNCST, NCHE, Academia, UIRI, DPs, Private Sector, UMA 5. Increase public investment in priority mineral processing; MEMD, MFPED, MTIC, UDC, UDB 6. Undertake PPPs to invest in mineral value addition; MEMD, MFPED, a. Support existing iron making factories such as Tembo Steel Ltd and MoJCA, UDC, MTIC, Steel Rolling Mills Ltd to enable increase in liquid steel production UIA, Private Sector, b. Fast-track the completion of the Katwe Salt Factory Project Financial Institutions 7. Increase levels of production of selected minerals to ensure adequate and MEMD consistent supply of raw materials; 8. Increase public investment in mining operations through for instance, UDB MEMD, UDC, MoFPED and UDC. 9. Apply the international EITI standards and principles along the mineral sector MEMD, UNES value chain. Objective 5: Expand mineral processing and marketing 1. Engage in bi-lateral and multi-lateral negotiations for increased access to MEMD, MoFA, MTIC, external markets; MFPED, MoJCAs, UEPB, DPs 2. Introduce incentive packages to attract investment in priority mineral value MEMD, MTIC, MFPED, chain; UIA, UDC, UDB, Financial Institutions, Private Sector 3. Streamline the process for acquisition and dissemination of minerals market MEMD information; 4. Review the tax regime to reduce the importation of cheap and substandard URA, MoFPED, NPA products; 5. Enhance the capacity of UNBS to undertake quality assurance and standard UNBS, MoFPED inspection. 6. Establish a mineral certification mechanism for tin, tungsten & tantalite (3Ts) MEMD, MoFA, MoFPED and Gold (G) 84 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Map 6.2: NDPIII priority minerals 85 NATIONAL PLANNING AUTHORITY Map 6.3: Required Infrastructure to Mineral Areas 86 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

6.3.2 — Implementation Reforms

6.3.2 Implementation Reforms 180 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Develop and implement service and service delivery standards for the sectors.

6.3.3 — Programme Human Resource Requirements

6.3.3 Programme Human Resource Requirements 181 Successful implementation of this programme will require addressing the following human resource gaps: Geologists and geophysicist; Engineering Analysis and Design Specialists; Computerized Mine Design Specialists; Mechatronic engineers; Mine Surveying and Geospatial Specialists; Mechatronic engineers; Ore Body Modelling Specialists; Rock Engineering Specialists; Surface Mining Systems Specialists; Cartographers and surveyors; Digital Technologies and Mine Data Analytics Specialists; Mine Automation and Robotics Specialists; Mining geomechanics Specialists; Mine Automation and Robotics Specialists; Cartographers and surveyors among others. Table 6.2 details the status of the availability of skills in short supply whose training is not available in Uganda and skills in short supply with training available in Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 6.2: Qualifications and Skills Gaps for Mineral Development Programme Estimated 5-Year Qualifications and Skills Status Gap Computerized Mine Design Specialists 890 Engineering Analysis and Design Specialists 216 Geophysical Technician 286 Mechatronic engineers 534 Mine Surveying and Geospatial Specialists 513 Ore Body Modelling Specialists 456 Ore Dressing and Extractive Metallurgy Specialists 241 Rock Engineering Specialists 284 Rock Mechanics Specialists 727 Surface Mining Systems Specialists 879 Cartographers and surveyors 967 Digital Technologies and Mine Data Analytics Specialists 956 Engineering Chemists 232 Engineering Physicists 472 Geologists and geophysicist 727 Mine Automation and Robotics Specialists 198 Mining geomechanics Specialists 379 Key for the table Skills in Short supply and Training is not available in country Skills in Short supply and Training is in-country 87 NATIONAL PLANNING AUTHORITY CHAPTER 7: SUSTAINABLE DEVELOPMENT OF PETROLEUM RESOURCES

7.1 — Introduction

7.1 Introduction 182 The oil and gas industry has a potential to transform Uganda’s economy. The industry is also central to sustainable development, as oil and gas are key pillars of the energy system and, as such, are drivers of economic and social development. Sustainable exploitation of petroleum resources is important in order to maximize returns for current and future generations. This will require focusing on institutional design and planning for oil-sector efficiency; balancing petroleum resources developments with protection and conservation of natural environment; and strategic investment of petroleum revenues to promote equitable socioeconomic and infrastructural transformation of the whole economy. 183 Sustainable development of petroleum resources is critical for enhancing value addition to oil and gas resources as one of the key growth opportunities. It facilitates the resource-based industrialization agenda through exploitation of the available oil resources. This contributes to export, employment and improved quality of life. Further, sustainable exploitation of oil resources provides resources that if well utilized can leverage investments in other sectors of the economy and lead to increased household incomes. 184 With careful planning and implementation, the oil and gas industry has the opportunity to contribute across all development indicators, either by enhancing its positive contributions or by avoiding or mitigating negative impacts to ensure that “no one is left behind”. Overall, oil and gas production can foster economic and social development by providing access to affordable energy, opportunities for decent employment, business and skills development, increased fiscal revenues, and improved infrastructure. However, if not exploited in a sustainable manner, petroleum can exacerbate the challenges that all development agendas seek to address, mainly climate change and environmental degradation, population displacement, economic and social inequality, armed conflicts, gender-based violence, tax evasion and corruption, increased risk of certain health problems, and the violation of human rights. The need for sustainable exploitation of petroleum resources is further stressed in the EAC Vision 2050, which calls for all countries in the region to emphasize access, capacity, efficiency and sustainability of natural resources. Additionally, the Uganda Vision 2040 envisages the commercialization of oil and gas in a feasible and sustainable manner. 185 However, sustainable exploitation of the petroleum resources in a timely manner is a major development challenge that this programme must address. This is caused by specific challenges including: (i) Inadequate infrastructure to support the development of oil and gas resources; (ii) Un-harmonized legal and regulatory framework; (iii) Protracted negotiation for the Final Investment Decision (FID) between government and the International Oil Companies (IOCs); (iv) Land acquisition issues (high costs, cultural issues); (v) Limited human and institutional capacity to support oil and gas operations; 88 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 (vi) Unnecessary delays to grant approvals by relevant government agencies (ESIAs, water permits); (vii) Limited private-led investment in the oil and gas industry; (viii) limited refined petroleum storage infrastructure; (ix) low Liquified Petroleum Gas (LPG) uptake and (x) unpreparedness to tap the local content potential. 186 The goal of this programme is therefore to attain equitable value from the petroleum resources and spur economic development in a timely and sustainable manner. 187 The key results to be achieved over the next five years are: (i) Increase national storage for refined petroleum products from 99.1 million litres in 2019 to 150 million litres; (ii) Increase oil and gas revenue from UGX 62.98 billion to UGX 265 billion; (iii) Increase contracts awarded to Ugandan firms in the oil and gas value chain; (iv) Change in the Natural Resource Governance Index from the position of 51; (v) Percentage change in the amount of revenue from oil and gas by 2 percent; (vi) Ugandans employed in the oil and gas and related industries from 3,400 jobs in 2019 to 50,000 jobs.

7.2 — Situation analysis

7.2 Situation analysis 188 Uganda has an estimated 6.5 billion barrels of oil of which 1.4 billion barrels are estimated recoverable. In addition, gas resources are currently estimated at 500 billion standard cubic feet (BCF). Sustainable management of the petroleum resources entails strategic focus on the entire oil and gas value chain, which comprises the upstream (e.g., promotion, licensing, exploration, development and production of petroleum resources), midstream (e.g., transportation, refining of oil and conversion of gas), and downstream (e.g., distribution, marketing and sale of petroleum products). The production of oil and gas is expected to contribute greatly towards a reduction in the country’s imports of petroleum and petroleum products, which accounted for about 16 percent of total imports in 2017/18; and improve the Current Account Balance. 189 Progress has been made particularly with respect to upstream value chain activities. The sector has transitioned from exploration and appraisal to new exploration and preparation for production of oil. The necessary policy, legal and institutional framework has been put in place as well as the necessary infrastructure, to support the oil and gas activities. In particular, Government in 2018 approved the National Content Policy for the Petroleum Sub-sector in Uganda. The policy aims to increase participation of Ugandans in the oil and gas activities and it provides principles for capacity building for national enterprises, skills development for the oil and gas sector, as well as development of a National Local Content Fund to support national enterprises and promote national participation in the industry. In addition, the Petroleum Authority of Uganda (PAU) and the Uganda National Oil Company (UNOC) were operationalized to regulate the petroleum industry and manage the business/commercial interests respectively. These policy and regulatory interventions have fostered effective and sustainable management of the oil and gas industry. For instance, in 2016, Uganda completed the first competitive licensing round, with issuance of 9 production licenses out of the 14 field discoveries. 89 NATIONAL PLANNING AUTHORITY This was a milestone into the development phase of the petroleum value chain, and is being undertaken under two separate projects—the Tilenga project in Buliisa and Nwoya Districts as well as Kingfisher project in Hoima and Kikuube Districts. In 2017, two more exploration licenses were issued to Oranto from Nigeria and Armour group from Australia. 190 Tremendous progress has been made towards establishment of a 60,000 BoPD greenfield refinery in Hoima District. This is in addition to land acquisition, resettlement and/or compensation of affected persons, and construction of road infrastructure (Map 7.1) leading to the location of the refinery project. Construction works for the Kabaale airport (which is part of the planned Kabaale Industrial Park) in Hoima District near the refinery land also commenced. Feasibility studies have been concluded on the development of transportation infrastructure for refined petroleum products. 191 The government has also progressed in ensuring transparency and accountability around revenue management within the oil and gas sector. The Public Finance Management and Accountability Act became law in 2015. It provides guidance on the management of petroleum revenues in Uganda. Furthermore, in early 2019, Government committed to joining the Extractive Industry Transparency Initiative (EITI). To this end, the government has established an EITI Secretariat and in partnership with civil society and the private sector set-up a multi-stakeholder group to steer implementation of the EITI Standard in Uganda’s extractive sector. 192 Strategically strengthening UNOC will be crucial to maximizing Uganda’s interests in the Oil and Gas sector. Since its set-up UNOC has made strides to maximize the country’s interests. It has fully refurbished the Jinja Storage Terminal (JST) and its currently being run by One Petroleum for stocking petroleum national reserves. It entered bulk trading of petroleum products and the first delivery was made by STABEX in February 2020. Further, it is in initial stages of establishing joint venture partnership with international oil companies and fronting Uganda's interest in Oil & Gas projects. Nevertheless, it needs strengthening for it to achieve its potential. It needs to be capitalized/increase its funding/equity to; protect Uganda’s interests in oil and gas projects by participating as a key player in key strategic projects; increase national strategic reserves by stocking sufficient quantities of petroleum products to prepare for any eventualities like border closures, pandemics among others; and strengthen its capacity. 193 Focus of this programme over this NDP period will be to fast-track Uganda’s decisions for sustainable production and utilization of its oil resources. This will require all readiness of required infrastructure, legal and policy and local content capacity. Further, ensuring the Uganda’s interests in oil and gas are maximized will be crucial.

7.3 — Programme Objectives

7.3 Programme Objectives 194 In order to maximize the country’s returns from the oil and gas resources, the following specific objectives will be pursued over the NDPIII period: 1) To fast-track sustainable production and utilization of the country’s oil and gas resources; 90 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 2) To strengthen policy, legal and regulatory frameworks as well as institutional capacity of oil and gas industry; 3) To enhance local capacity to participate in oil and gas operations; 4) To promote private investment in oil and gas industry; 5) To enhance Quality Health, Safety, Security and Environment (QHSSE); 6) To improve security of supply of refined petroleum products

7.3.1 — Interventions

7.3.1 Interventions 195 Table 7.1 highlights the prioritized interventions to achieve the above objectives. Table 7.1: Petroleum Interventions and Respective Actors Interventions Actors Objective 1: To ensure sustainable production and utilization of the country’s oil and gas resources 1. Undertake further exploration and ventures of the Albertine Graben MEMD, MoFPED, PAU, UNOC, Joint Venture Partners 2. Undertake construction and operationalisation of infrastructure projects in the MEMD, MoWT, UCAA, Albertine Region to ease movement of goods, labour and provision of services UNRA, MoLHUD, PAU, a) Roads, energy, water and ICT network MWE, MoFPED, UNOC, b) Oil refinery MoICT&NG, LGs c) East African Crude Oil Pipeline d) Storage terminals and the auxiliary facilities e) Geoscience laboratory f) National Petroleum Data Repository 3. Construct the Central Processing Facilities (CPFs) for Tilenga and Kingfisher MEMD projects; 4. Conduct a feasibility study to establish a robust and adequate petrochemical industry MEMD, MOFPED, NEMA, PAU, NPA, LGs 5. Development of the Natural Gas Pipeline from Tanzania to Uganda to support MEMD EACOP, Iron Ore Industry and other industrial and domestic uses Objective 2: To strengthen policy, legal, regulatory and institutional framework for the oil and gas industry 1. Complete the relevant oil and gas project commercial agreements MEMD, MoJCA, PAU, a) Share Holders Agreement (SHA), Host Governmental Agreements (HGA), UNOC, Parliament, Joint Transportation and Tariff Agreement (TTA) Venture Partners 2. Review, update relevant policies, and harmonize conflicting laws and regulations; MEMD, MoJCA, PAU, UNOC, Parliament, Joint Venture Partners 3. Operationalize the National Content policy to enhance local Content and MEMD participation of nationals including women and youth in the oil and gas sector 4. Develop strategy for an oil and gas innovation hub; MEMD, MoJCA, MoES, PAU, UNOC, Academia, Joint Venture Partners, NCHE 5. Improve the operations of the National Petroleum Information System MEMD, URA, MoICT&NG. 6. Strengthen governance and transparency in the oil and gas Sector. PAU, UNOC, BOU, MEMD, MOFPED Objective 3: To enhance local capacity to participate in oil and gas operations 1. Establish an oil and gas Incubation Fund to promote Local Entrepreneurs and SMEs MEMD, MoFPED, UDB 2. Capitalize UNOC to execute its mandate as an investment arm of government in oil MEMD, MoFPED, UNOC, and gas industry PAU, Parliament 3. Fast-Track Skilling (e.g., apprenticeship), Training and International Accreditation MEMD, MoJCA, MoES, of Ugandans including women, youth and PWDs for employment and service PAU, UNOC, Academia, provision in the development/phase of the oil and gas sector. NCHE, Joint Venture Partners 91 NATIONAL PLANNING AUTHORITY Interventions Actors 4. Implement the strategy on value addition and marketing of goods and services that MEMD, PAU, other will be demanded by the oil and gas sector MDAs 5. Provide SMEs both technical (training) and financial support to enhance their MEMD participation in tendering and of delivery of contracts. (Direct and indirect participants in the oil and gas value chain) 6. Establish inter and intra-sectoral linkages to ensure readiness to meet the needs in the MEMD, PAU, UNOC, oil and gas industry PSFU, Joint Venture Partners 7. Establish a framework for adoption and transfer of knowledge and technology within MEMD the oil and gas sector. 8. Implement the Agricultural Development Strategy for the Albertine Region MEMD, MAAIF Objective 4: To promote private investment in oil and gas industry 1. Develop and implement a sustainable financing strategy MOFPED, PSFU, UDB, UNOC 2. Implement a communication strategy to deal with public anxiety and managing MEMD, UNOC, ICT, NITA_U, PAU expectations; 3. Develop and implement a marketing and promotional strategy for oil and gas MEMD, UNOC, ICT, NITA_U, PAU projects. Objective 5: To enhance Quality, Health, Safety, Security, Social and Environment (QHSSSE) 1. Develop and implement oil and gas QHSSSE systems and standards; MEMD, MoGLSD, MoH, MoD, MIA, MWE, PAU, UNOC, UNBS, NEMA, Joint Venture Partners 2. Establish QHSSSE governance and assurance framework; MEMD, MoGLSD, MoH, MoD, MoIA, MWE, PAU, UNOC, UNBS, NEMA, Joint Venture Partners 3. Develop and implement an oil and gas disaster preparedness and contingency plan; MEMD, MoGLSD, MoH, a. Conduct an oil and gas hazard risk and vulnerability profiling and mapping MoD, MIA, MWE, of the districts involved MoLHUD, PAU, UNOC, UNBS, OPM, NEMA, LGs, Joint Venture Partners 4. Develop decommissioning and closure management plans MEMD, UNOC, MoGLSD, MoH, MoD, MIA, MWE, PAU, UNOC, NEMA, LGs, Joint Venture Partners 5. Develop and implement environmental and social management plan MEMD, MoGLSD, MoH, MWE, PAU, UNOC, NEMA, UWA, LGs, Joint Venture Partners 6. Develop standards for storage infrastructure including LPG, transportation and other MEMD, UNBS facilities Objective 6. To improve security of supply of refined petroleum products 1. Development of standards for storage infrastructure and other facilities MEMD, UNBS, UNOC 2. Develop operations standards of transportation of petroleum products on Lake and MEMD, MoWT, UNBS Rail 3. Develop strategic regional storage terminals for petroleum products MEMD, MoWT UNOC 4. Restock and manage Jinja Storage Terminal UNOC, MoFPED 92 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Map 7.1: Mapping of selected supporting infrastructure for Petroleum Development 93 NATIONAL PLANNING AUTHORITY

7.3.2 — Programme Human Resource Requirements

7.3.2 Programme Human Resource Requirements 196 Successful implementation of this programme will require addressing the following human resource gaps: Petroleum Engineers; Drilling Engineers; Production Engineers; Reservoir Engineers; Electrical & Instrumentation Engineers; Reservoir Geologists; Production Geologists; Production Chemists; Production Geologists; Reservoir Geophysicists; Petroleum Economists; Refinery Engineers; Geotechnical engineer; Chemical Engineers; Geotechnical engineer; Chemical Engineers; Well testing specialist; Well testing specialist; Mechanical technicians; Basin Analysis specialists; Field Depletion Planning; Mechanical technicians among others. Table 7.2 details the skills in Short supply with Training not available in Uganda and Skills in Short supply with Training available in-Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 7.2: Qualifications and Skills Needs for: Sustainable Development of Petroleum Resources Estimated 5-Year QUALIFICATIONS AND SKILLS Status Gap Petroleum Engineers 191 Drilling Engineers 191 Production Engineers 335 Reservoir Engineers 287 Electrical & Instrumentation Engineers 249 Reservoir Geologists 96 Production Geologists 86 Production Chemists 191 Reservoir Geophysicists 191 Refinery Engineers 167 Pipeline Engineers 143 Petroleum Economists 335 Geotechnical engineer 143 Chemical Engineers 335 Well testing specialist 54 Mechanical technicians 197 Civil control engineers 179 Field Depletion Planning 81 Basin Analysis specialists 90 Key for the table Skills in Short supply and Training is not available in country Skills in Short supply and Training is in-country 94 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 8: TOURISM DEVELOPMENT

8.1 — Introduction

8.1 Introduction 197 Tourism is important for increasing forex earnings, creating jobs and alleviating poverty. It contributes towards inclusive growth and development of a country by: bringing numerous economic value and benefits; and, helping in building the country's brand value, image and identity. It is important for poverty reduction by providing employment and diversified livelihood opportunities. This in turn provides additional income or contributes to a reduction in vulnerability of the poor by increasing the range of economic opportunities available to individuals and households. Further, tourism has wide multiplier effects by developing not only primary industries but also secondary industries to support tourism e.g agriculture, manufacturing, transport and services. 198 The aspiration of Agenda 2030 is to devise and implement policies to promote sustainable tourism which creates jobs, promotes local culture and products (SDG 8). Tourism also supports SDG 15 to protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. Agenda 2063 also targets increasing the contribution of tourism to GDP. EAC Vision 2050 prioritizes joint interventions in the tourism sector that are: competitively priced; cost effective and have a high return on investment through the issuance of an East African Visa; and joint marketing presenting the EAC as one tourism product and standardized joint classification of hotels. The Uganda Vision 2040 identifies tourism as one of the strategic opportunities that need to be harnessed for socio-economic transformation. 199 Nevertheless, Uganda has inadequately exploited its tourism potential due to: (i) limited branding, marketing and promotion; (ii) inadequate tourism infrastructure due to low investment in tourism infrastructure; (iii) undeveloped, narrow product range, and under-conserved; (iv) inadequate and unskilled manpower/personnel; (v) depletion of natural and cultural heritage; and, (vi) weak institutional, policy and regulatory framework due to weak co-ordination, outdated and non-deterrent laws, and small staff strength. 200 The goal of this programme is therefore to increase Uganda’s attractiveness as a preferred tourism destination. 201 The key results to be achieved over the next five years (FY 20/21 to FY 24/25) are: (i) Increase annual tourism revenues from USD 1.45 billion to USD 1.862 billion; (ii) Maintain the contribution of tourism to total employment at 667,600 people; (iii) Increase inbound tourism revenues per visitor from USD1,052 to USD1,500; (iv) Maintain the average number of International Tourist arrivals from the U.S, Europe, Middle East, China and Japan at 225,300 tourists; (v) Increase the proportion of leisure to total tourists from 20.1 percent to 30 percent; (vi) Increase the number of direct flight routes to Europe and Asia from 6 to 15. 95 NATIONAL PLANNING AUTHORITY

8.2 — Situation Analysis

8.2 Situation Analysis 202 Uganda has a big potential in tourism compared to its comparators, notably in the areas of safaris, culture and historical heritage. It is endowed with a variety of tourist attractions, being a home to 53.9 percent of the world’s mountain gorillas, 7.8 percent of the world’s mammal species, including the unique tree climbing lions and white rhinos, 11 percent of the world’s bird species (1063 bird species), and variety of butter flies. Other unique attractions include chimpanzees and golden monkeys. The country has beautiful mountain ranges including the snow-capped Ruwenzori Mountain ranges, second largest fresh water lake (Lake Victoria), third deepest lake (Lake Bunyonyi) in the world and as well as the source of the world’s longest river (River Nile) gifted with beautiful waterfalls and unique water scenery. Uganda is also blessed with a lot of water bodies and hot springs that could spur water-based tourism as well as a wide range of cultural heritage attractions like Namugongo Martyrs Shrine, Kasubi Tombs, Museums and a number of Kingdoms. New products like Golf tourism, Culinary tourism (Rolex Festival, Cultural food festivals etc) have also been developed. 203 The country has made some modest investments in the diversification and development of tourism products, some tourism marketing in the United States, Germany and the United Kingdom, and in the improvement of tourism infrastructure particularly hotels and transport. As a result, the country has registered some success in terms of increasing tourist arrivals and revenue as well as creating jobs along the tourism value chain. The vast majority of tourists are from African countries and there are increasing trends in visitors from Asia and the rest of the world. In terms of leisure tourism, the country remains dependent on traditional tourist source markets in America and Europe. As such, the quality of tourists and the expenditure per tourist is low compared to Uganda’s comparators (Figure 8.1). 204 In 2017, 35 percent of total arrivals came to Uganda to visit friends and relatives, followed by those visiting for business and professional conferences at 28 per cent. With 80 percent of tourists being residents of East Africa, the per capita tourist expenditure is low and as a result the hotels have only 29 per cent annual occupancy rate, suggesting inadequate and limited flow of guests. 205 The average length of stay for leisure tourists was 8.3 days, and the average spending per visitor per day was USD 111. The tourist expenditure and length of stay are largely varied by the availability and variety of competitive tourism products and facilities which trigger tourists’ decision to spend. 206 Uganda’s brand identity is still weak and not readily recognized globally for tourism and has been mostly shaped, in a negative light, by its history, politics and the media. In addition, Uganda’s commercial diplomacy has not aggressively marketed Uganda. The promotional campaigns by Uganda Tourism Board have focused mainly on the traditional source markets. Tourism marketing in emerging markets like China, Middle East and Japan is almost non-existent. 96 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Table 8.1: Tourists’ comparison to Uganda by Purpose of Visit in 2017/18 207 Uganda’s transport connectivity is inadequate to facilitate tourism (Map 8.1). Progress has been made in improving internal transport connectivity owing to government’s focus on tarmacking roads over the last ten years. But despite the progress made, there is still more work to be done. Bwindi roads are sometimes completely blocked as a result of landslides during the rainy season, disrupting tourist movement. There is also need for better air connectivity, especially for Kidepo Valley National Park, and Bwindi Impenetrable National Park. Also, the absence of an efficient public transport system (water transport, railway etc) connecting to tourism sites means that potential tourists who do not have their own transport or who find hiring private cars expensive are discouraged from touring such places. Table 8.2: Tourism and Travel Competitiveness Index Ranking for EAC 2007 (out of 2009 (out of 2011 (out of 2013 (out of 2015 (out of 2017 (out of 124) 133) 139) 140) 141) 136) Kenya 98 97 103 96 78 80 Tanzania 80 98 110 109 93 91 Uganda 101 111 115 116 114 106 Rwanda - - 102 105 98 97 Burundi 123 131 137 138 135 134 Source: WEF (2017a). 208 The country has a very limited number of direct flights into the country thus making the international transport cost more expensive in comparison to the region comparators (Table 8.1). There are no direct flights to Asia and only a few to the Middles East. The costs of services such as landing fees are also still key inhibitors to the growth. Other issues of concern include; ICT readiness, hygiene and health, tourist service infrastructure and air transport service infrastructure. Infrastructure is limited due to: 97 NATIONAL PLANNING AUTHORITY unavailability of electricity, water, ICT in key tourism sites, and lack of tourist stopover facilities. 209 Uganda’s tourism product range is narrow, under-developed and under conserved. Uganda boasts of large water bodies, the River Nile, tall mountains, rich culture and heritage, diverse avian life and a strong entertainment sector but little of these have been developed for tourism. Currently, 51 per cent of tourist revenue comes from wildlife products, particularly from the sale of gorilla permits. In addition, dwindling stocks arising from poaching, illegal wildlife trade and trafficking, climate change effects, human- wildlife conflicts, encroachments and a number of other factors are constraining the growth of revenue even from this source. Further, cultural heritage conservation remains untapped. Uganda has rich historical and cultural heritage with over 650 cultural sites yet the existing laws and standards for the conservation and development of cultural heritage are outdated. The infrastructural facility for museums is only limited to one national museum with limited capacity for International exhibitions, conservation labs, increased population. The existing information system of cultural heritage sector is characterised by old paper files, and inadequate use of ICT equipment. The Geographical Information Systems (GIS) is limited to a few Historical buildings in Kampala, Entebbe and Jinja to enhance tourism services and national heritage data services. 210 There is limited government support to the private sector to spur investment in tourism and the existing incentives are not yet attractive enough to lure them into product development. The huge skills gaps also limit creativity and any meaningful innovation to add value to the existing products. In addition, inadequate access to Tourist Information and unhospitable treatment of tourists on arrival. There are not enough tourism information centres throughout the country and even the few available are not easily accessible to guide tourists during their stay leaving them to guess where to go and what to see. The local communities at times take advantage and provide substandard services to the industry’s detriment. The reception of tourists at airports and border entry points is not market friendly and leaves quite a number of tourists feeling unwelcome. 98 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Map 8.1: Tourism connectivity 99 NATIONAL PLANNING AUTHORITY 211 In addition, inadequate and relatively expensive hotels. With a very low presence of international branded hotel chains, the country still has a shortage of quality accommodation capacity in and around National Parks, and across the country. By November 2018, only 3 international hotel chains were operating in Uganda i.e. Marriott International Group (Sheraton Hotel and Protea Hotel brands); Louvre Hotels Group (Golden Tulip Canaan brand) and Best Western Hotels and Resorts (Best Western Premier Garden Hotel, Entebbe) as compared to Kenya (with 15) and Tanzania (with 15) respectively. Hilton Garden Inn Kampala joined the Hilton Portfolio in 2019 and Royal Swiss Empuku Spa & Resort, Entebbe is expected to join the Swiss International Hotels & Resorts chain in 2019. Hotel beds in most game parks and game reserves are few and very expensive. For instance, a hotel bed in the Kidepo national park costs about USD700 a night, compared to an average of USD80 – USD100 in Asia for comparable or better accommodation. This situation is attributed to high costs of hotel establishments and unfavourable tax and incentives structure in the country. As the sector embarks on promoting and expanding the MICE industry, it is important that the issue of accommodation is addressed. 212 Manpower/personnel working in tourism are inadequate and under-skilled. The quality of personnel available to work in the tourism sector is generally low. There are few available tourism training institutions, whose quality is also lacking. The quality of both instructors and equipment at the Uganda Hotel and Tourism Training Institute (UHTTI) in Jinja and Uganda Wildlife Research and Training Institute (UWRTI) in Kasese needs upgrading. Efforts to engage a recognized international partner in tourism training to manage the UHTTI have not materialised. Some of the training and skills gap can quickly be addressed through apprenticeship and on job training. 213 Further, there is inadequate policy and quality regulation in the sector. There are no established standards to regulate/guide the tour guides. There have been incidences of exploitation of workers within the industry. The current poor stakeholder engagement and co-ordination in conducting training for their members constrains efforts to raise the skill levels in the sector, and the culture of training and continuous professional development is weak. Maintenance of standards and quality of service is at the discretion of the owners of the different facilities. This creates service quality gaps that undermine growth of the sector. Whereas Uganda Tourism Board has started classifying hotels and lodges, its capacity is limited leaving the majority of the actors along the value chain unregulated. In addition, these standards have not been rolled out to local governments for enforcement by district commercial officers. Local governments, regional clusters of private sector players, the Ministry of Tourism and UTB should do more to guide, inspect and regulate the sector. 214 Focus over this NDP period will be two pronged; elite and local tourism. Local tourism products will include: Culture and heritage sites, religious events, and education. Elite tourism products include: Meetings, Incentives, Conferences and Events (MICE), specialized health care services, plus nature and wild. Toward this, Uganda will be marketed both as a niche tourism ‘product’ offering an unparalled and unique tourism 100 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 experience and as a mass tourism destination. Special products will be designated for the different categories of tourism.

8.3 — Programme Objectives

8.3 Programme Objectives 215 In order to address the above constraints, the objectives of this programme are to: 1) Promote domestic and inbound tourism; 2) Increase the stock and quality of tourism infrastructure; 3) Develop, conserve and diversify tourism products and services; 4) Develop a pool of skilled personnel along the tourism value chain and ensure decent working conditions; and, 5) Enhance regulation, coordination and management of the tourism.

8.3.1 — Interventions

8.3.1 Interventions 216 In order to achieve the above objectives, NDPIII will prioritize the following interventions as highlighted in Table 8.2. Table 8.3: Tourism Interventions and the Respective Actors Interventions Actors Objective 1: Promote domestic and inbound tourism 1. Review and implement a national tourism marketing strategy targeting both elite UTB, MTWA, LGs, and mass tourism segments by: MoFA, UIA, Private a. Brand Image: Build a positive and competitive image of the destination by Sector, Cultural & increasing market presence in key source markets and improving destination Religious Institutions, awareness in domestic and key source markets; UWA, Media/UBC, b. Build Market Structures to promote access to Source Markets through trade MoICT & NG representation and Tourism Information centres; c. Establish a Market Intelligence Framework to monitor trends and status of Tourism Growth. 2. Develop international, regional and domestic connectivity with countries already MoWT, UNRA, attracting large numbers of tourists and for domestic markets. In particular, UCAA, Uganda upgrade and expand Entebbe airport and regional aerodromes. Airlines, UTB, CAA 3. Develop a more robust public/private sector system to collect and analyse Uganda Airlines, information on the industry in a timely fashion. In particular, establish Private sector partnerships with domestic, regional and international airlines/carriers. 4. Upgrade handling and negotiation capacity of frontier services and foreign Uganda Airlines, intermediaries MoFA, MOIA MTIC, a. Train Ugandan diplomats to support tourism marketing and handling, and MTWA, UEPB, and Visa/consular staff in customer care; UTB. b. Introduce mechanisms to allow online purchase or pre-approval of visas. Objective 2: Increase the stock and quality of tourism infrastructure 1. Expand, upgrade and maintain tourism national transport infrastructure and MoWT, UNRA, services: UCAA a. Improve the road for southern access to Bwindi National Park; b. Build a bridge across the Nile at Murchison Falls National Park; c. Relocate and upgrade the airstrip at the periphery of Kidepo Valley National Park; d. Expand, upgrade and/or maintain National tourism roads; 101 101 NATIONAL PLANNING AUTHORITY Interventions Actors e. Improve infrastructure around Mt Elgon; f. Improve and/or maintain access to Protected Areas; g. Construct/rehabilitate/upgrade marine/water routes including 20 docking piers on Lake Victoria and Lake Albert. h. Develop and improve the roads to cultural heritage sites of Bigo Byamugenyi archaeological heritage, Nyero, Patiko, Emin Pasha’s fort 2. Support the development and/or upgrade of accommodation and conference MLHUD, UWA, facilities of all types and sizes as well as leisure attractions and facilities MoWT, Private sector, (including, restaurants, bars and cafes): MTWA, MWE, a. Increase the number of hotel rooms and food and beverage facilities; MoFPED, UIA, KCCA b. Facilitate the establishment of International hotel chains; c. Construct a National Convention centre to scale up MICE tourism. 3. Support the private sector to provide low-cost accommodation facilities in MTWA, Private sector protected areas 4. Develop digital capability in the tourism industry to market and improve access UCC, ICT to products: a. Provide fast, accessible and reliable internet connectivity in all wildlife protected areas and other major tourists’ attractions; b. Promote use of e-tourism services. 5. Construct water dams in Toro Semuliki Wildlife Reserve, Lake Mburo National MWE, UWA park, Kidepo Valley National Park, Murchison Falls National Park, Pian Upe Wildlife Reserve and Bokora-Matheniko Wildlife Reserve savannah wildlife protected areas 6. Establish trade and service facilities, including; insurance, banking, sports and MTIC, UWA, Private recreation, cultural and craft facilities and services at the different tourist Sector, MTWA, attraction points and tourist information centres. MOES, MoFPED, IRA, UEPB, NCS, MoGLSD 7. Develop international, regional and domestic connectivity with countries already MoWT, UNRA, attracting large numbers of tourists and for domestic markets. In particular, UCAA, Uganda upgrade and expand Entebbe airport and regional aerodromes. Airlines, UTB Objective 3: Develop, conserve and diversify tourism products 1. Develop new tourist attraction sites profiled by region to include new products MTWA, UWA, LGs, such as: Community tourism; Adventure tourism further enhanced by developing UTB, MoICT & NG, hiking, climbing and cable cars in the Rwenzori Mountains; Water-based (marine) MLHUD, MWE), tourism; e.g. from Semuliki National Park to East Madi wildlife reserve through Cultural & Religious Lake Albert, Semuliki river and River Nile; MICE; Agro-tourism. institutions, UWEC, MAAIF 2. Upgrade, maintain and redevelop existing tourist attraction sites profiled by MTWA, UWA, LGs, region to include new products like dark tourism, culinary tourism, adventure UTB, MoICT & NG, tourism, wellness ‘tourism, war tourism MLHUD, MWE), Cultural & Religious institutions, UWEC, MAAIF 3. Diversify tourism products (eg cultural) and map potential across the country MTWA, OPM, LGs including conducting hazard risk and vulnerability mapping for tourism areas 4. Establish and enforce quality marks/standards for the tourism industry and its sub- UTB, MTWA, MoH, segments through regular inspection and grading of tourism-related facilities such KCCA, LGs, Tourism as accommodation, attractions, beaches, restaurants and travel as well as enforce Police, Private Sector, service standards for tour operators UWA 5. Develop competitive tour packages (including transportation, lodging, and Private Sector, excursions) MTWA, MoFPED, MTIC, UTB and UWA 102 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors 6. Provide security at tourist attraction sites including addressing human-wildlife MoDVA conflicts 7. Develop and implement a framework for conserving natural and cultural heritage MTWA, UWA, UPDF, LGs 8. Strengthen enforcement against tourism crime MTWA, UWA, UPDF, LGs 9. Remove evasive species in protected areas. UTB, MTWA, MAAIF, MTIC, Private Sector, UIA, UCDA, UWA, UEPB, MoWT, UNRA, MoLG, LGs Objective 4: Develop a pool of skilled personnel along the tourism value chain and ensure decent working conditions 1. Implement the tourism curriculum at the Uganda Hotel and Tourism Training UHTTI, UWRTI, Institute (HTTI). MOES, NCDC 2. Provide tailor-made training for actors across the entire tourism value chain. MTWA, MOES a. Develop the Jinja and Kasese institutes to international standards; b. Provide a financing framework for this training. 3. Incentivize the private sector to provide skills through internship and MTWA apprenticeship programmes. 4. Nurture local hospitality sector enterprises for participation in local, regional and MTWA global tourism value chains. 5. Establish and operationalize a tourism investment fund to enable private investors MoFPED, MTWA, get access to affordable finance. MTIC, UTB, Enterprise Uganda 6. Strengthen/develop the legal and policy framework and mechanisms to ensure MOGLSD, MTWA, decent working conditions in the industry so as to reduce incidences of exploitation Objective 5: Enhance regulation, coordination and management of the tourism 1. Develop a Tourism information Management System MTWA, UTB 2. Establish and operationalize a tourism investment fund to enable private investors MoFPED, MTWA, get access to affordable. MTIC, UTB, Enterprise Uganda, UDB 3. Establish quality marks/standards for grading of tourism-related facilities such as MTWA, UTB accommodation, attractions, beaches, restaurants and travel 4. Strengthen inspection and enforcement of service standards for tourism facilities UTB, MTWA, MoH, and tour operators KCCA, LGs, Tourism Police, Private Sector, UWA 5. Strengthen institutional partnerships for tourism development OPM, MTWA, LGs, UWA, UTB, Private sector

8.3.2 — Implementation Reforms

8.3.2 Implementation Reforms 127 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 103 NATIONAL PLANNING AUTHORITY 1) Develop service delivery standards to set benchmark against which to assess performance. 2) Uganda Tourism Board (UTB) should be put in charge of all tourism marketing efforts given the diversity of tourism products. UWA should concentrate on conservation and wildlife management only.

8.3.3 — Programme Human Resource Requirements

8.3.3 Programme Human Resource Requirements 217 Successful implementation of this programme will require addressing the following human resource gaps: Museologists; Nature-Based Tourism and Ecotourism specialists; Sommelier-Wine and beverages tasters; Zoologists; Tourism research specialists; Human- wildlife Conflict Management specialists; Brand management specialists; Palentologists; Multilateral Agreement negotiations; Chefs among others. Table 8.3 details the status of the availability of skills in short supply whose training is not available in Uganda and skills in short supply with training available in Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 8.4: Qualifications and Skills Gaps for Tourism Programme Estimated 5-Year Qualifications and Skills Status Gap Airline management specialists 238 Ecotourism specialists 795 Multilateral Agreement negotiations 364 Museologists 334 Nature-Based Tourism and Ecotourism specialists 400 Palentologists 246 Sommelier-Wine and beverages tasters 501 Brand management specialists 817 Chefs 4,457 Geologists 454 GIS and Remote Sensing specialists 513 Human-wildlife Conflict Management specialists 400 Interpreters and Translators 411 Jewellery and Precious Metal Workers 1,239 Tourism Products development and innovation specialists 1,423 Tourism research specialists 444 Zoologists 208 Key for the table Skills in Short supply and Training is Skills in Short supply and Training is not available in country in-country 104 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 9: NATURAL RESOURCES, ENVIRONMENT, CLIMATE CHANGE, LAND AND WATER MANAGEMENT

9.1 — Introduction

9.1 Introduction 218 Natural resource and climate change management are critical to the reduction of disaster losses, achievement of increased household incomes and improvement of quality of life of the population. Sustainable land management is critical for harmonising environmental, economic and social opportunities for the benefit of present and future generations while maintaining and enhancing the quality of the land resource. Sufficient precipitation occasioned by maintaining and/or increasing forest and wetland cover is vital for hydropower generation, agriculture, fisheries, domestic water supply, industry, navigation, tourism, wildlife and ecosystems. Proper wetland management is necessary to mitigate flood risks, maintenance of aquatic ecosystem, and access to fresh water. Environment preservation is also critical for human health and tourism. In addition, adaptation and mitigation of climate change orchestrated impact of droughts, floods, heat waves and landslides on the livelihood of vulnerable populations is critical for reducing income inequality. 219 Natural resource and climate change management are central for the realisation of the sustainable industrialisation agenda of this plan. This is critical for sustainable exploitation of the key growth opportunities of agriculture, minerals, petroleum and tourism, ultimately contributing to increase in incomes and improved quality of life. 220 Agenda 2030 (SDG 12, 13, 14 and 15) sets targets for combating the effects of climate change and sustainable management of water resources, land, terrestrial ecosystems, forests and the environment. Aspiration 1, Goal 7 of Africa Agenda 2063 calls for putting in place measures to sustainably manage the continent’s rich biodiversity, forests, land and waters and using mainly adaptive measures to address climate change risks. The EAC Vision 2050, pillar 3.4 targets sustainable utilisation of natural resources, environment management and conservation with enhanced value addition, with 92.9 percent of population having access to safe water. The Uganda Vision 2040 calls for development of appropriate adaptation and mitigation strategies on Climate Change to ensure that Uganda is sufficiently cushioned from any adverse impact brought by climate change. Further, the Vision identifies sustainable land use and management as one of the fundamentals to be strengthened in order to harness the country’s abundant opportunities. 221 Nevertheless, there is poor management of natural resources including land, water, and environment coupled with the worsening effects of climate change due to: (i) poor land use and insecurity of tenure; (ii) limited capacity for climate change adaptation and mitigation; (iii) low disaster risk planning; (iv) rampant degradation of the environment and natural resources caused by low enforcement capacity, limited environmental education and awareness, limited alternative sources of livelihoods and limited research, innovation and adoption of appropriate technology; (v) limited access and uptake of meteorological information (inaccuracy in information) due to low technology and equipment for early warning and preparedness and ineffective systems and mechanisms for addressing vulnerabilities (vi) poor coordination and institutional 105 105 NATIONAL PLANNING AUTHORITY capacity gaps in planning and implementation; and (vii) absence of appropriate incentives for good environmental management practices. 222 The goal of the programme is to reduce environmental degradation and the adverse effects of climate change as well as improve utilisation of natural resources for sustainable economic growth and livelihood security. 223 The key results to be achieved over the next five years are: (i) Increase water permit holders complying with permit conditions at the time of spot check; a. abstraction – surface from 78 percent to 82 percent; b. abstraction – groundwater from 76 percent to 81 percent; c. waste water discharge from 63 percent to 68 percent. (ii) Increase water samples complying with national standards; a. water bodies at 65 percent by 2025; b. supplies/water collection point at 80 percent by 2025; (iii) Increase land area covered by forests from 9.1 percent to 15 percent; (iv) Increase land area covered by wetlands from 8.9 percent to 9.57 percent; (v) Increase permit holders complying with ESIA conditions at the time of spot check from 40 percent to 90 percent; (vi) Increase the accuracy of meteorological information from 80 percent to 90 percent; (vii) Increase the percentage of automation of weather and climate network from 30 percent to 80 percent; (viii) Increase the percentage of titled land from 21 percent to 40 percent; and (ix) Reduce land related conflicts by 30 percent.

9.2 — Situation Analysis

9.2 Situation Analysis 224 There have been mixed results in the performance of key elements of this programme, notably; conservation, restoration and management of land, water, environment and natural resources. There has been significant reduction in the forest cover from 15 percent in 2010 to 9.5 percent in 2017 as well as wetland degradation and encroachment from 11.9 percent in 2012 to 10.9 percent in 2017. In addition, there have been increasing cases of land evictions and grabbing due to land tenure insecurity with only 21 percent of the land registered. These have contributed to reduced agricultural productivity; land conflicts; increased food insecurity; higher incidence of diseases and pests in humans, livestock and crops; soil erosion and land degradation; loss of biodiversity; and flood damage to infrastructure and settlements. 225 Overall, 15.3 percent of Uganda’s area is covered by open fresh water sources (rivers, lakes, streams and swamps). The Total Renewable Water Resources (TRWR) for the country is 43.3 km3. Average annual groundwater recharge is relatively high in the range of 19.1 to 39.9 mm. Hence, Uganda is not a water scarce country. However, Uganda does experience water challenges such as, water pollution and siltation of dams and rivers. The major problem with the water resource is pollution caused by bacterial and chemical contamination of both groundwater and surface water resulting from inadequate sanitation facilities, unsafe disposal of municipal and industrial waste, poor farming practices 106 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 coupled with degradation of the wetland and catchment areas. Pollution has increased the costs of water treatment, raising the cost of water provision which at the moment is one of the highest in the region. The rate at which rivers and lakes are silting is threatening their ecological integrity, compounding water stress in some areas and the cost of treating drinking water. 226 Government efforts to revamp meteorological services and scaling up investment in collabouration with the development partners has greatly improved the meteorological sub-sector. Equipping of weather monitoring stations and training of staff for generation of data for meteorological products and services has been put in place and is continually upgraded to meet the evolving demands. Automation of weather monitoring and communication infrastructure (including radar technology) has leaped from 10 percent district coverage in 2014/15 to 43 percent in 2018/19 and the functional major manual stations have increased from 12 to 32 over the same period. The accuracy of seasonal forecasts improved from 60-70 percent in 2014/15 to 70-80 percent in 2018/19, with the lower limit for the first season and the upper limit for second season. However, the meteorological sub-sector has a number of challenges, which include; increased weather and climate variability due to climate change; rapidly changing technology which requires constant upgrade of the capital intensive infrastructure; rapid developments, which are exerting more demand for reliable weather and climate information; ever changing International Quality Management System (QMS) standards to which the country must comply; and the national innovative livelihood and survival strategies, which are rapidly changing (e.g. the national growing needs for Climate Smart Agriculture, which promotes a Green Economy among other benefits) the needs tailored information and data. 227 The restoration of forests and tree cover by natural regeneration or by plantation or by agroforestry has not kept pace with the annual loss of forest cover and loss of individual trees. Between 2016 and 2019 the forestry sub-sector contributed 3.5 percent of GDP per annum. Uganda’s forests supply 88 percent of all its energy needs, provide 61 percent of Uganda’s tourism income and provide jobs for about 1 million people. Private commercial plantations have been promoted together with tree planting campaigns and about 3,500 ha of degraded natural forests have been restored and 60,000 ha were allocated to private developers for commercial tree plantation development, out of which 5,400 ha of new plantations have been established. A total of 950 km of external boundaries were resurveyed and marked. However, the restoration of forests and tree cover by natural regeneration or by plantation or by agroforestry has not kept pace with the annual loss of forest cover and loss of individual trees. As a result, the forest cover has declined from 24 percent (or 4.9 million ha) of Uganda’s total land area in 1990 to 9 percent (1.83 million ha) in 2018, a reduction of 57 percent in just 25 years. This is majorly attributed to biomass fuel cooking/combustion with other auxiliary drivers such as expansion of agricultural land, sporadic urbanization, and income poverty, industrialization and inadequate incentives for private plantation of forests. The influx of refugees who heavily rely on natural resources has worsened the situation. Additionally, 107 NATIONAL PLANNING AUTHORITY the existing penalties and enforcement mechanisms are inadequate to address the increasing impunity on forest encroachment. 228 Wetlands have continued to provide domestic water estimated at USD 34 million per annum but degradation is alarming. The demarcation of boundaries of critical wetlands has been ongoing and the restoration and protection of degraded wetlands has been undertaken countrywide, as well. However, wetland degradation is over 70 times the rate of restoration. between the period 1994 and 2015, 2.5 percent of the wetlands have been permanently lost and are no longer recoverable. The latest national land cover mapping, estimates wetlands coverage at 13 percent of the total land cover nationally. Of this, only 8.9 percent is intact, with 4.1 percent degraded by farmlands, tree plantations and houses. It is estimated that Uganda loses 846 km2 of its wetlands annually, the major causes of wetland degradation are; poor farming practices, unplanned urbanization, expansion of informal settlements, excessive water abstraction, income poverty, poor intra and inter sector coordination with regards to continued issuance of land titles in wetlands, sand mining and industrialization with some of the demarcated business/industrial parks located in wetlands. 229 Government has put in place relevant policy and regulatory framework to address land management, land use planning and management. Nonetheless, only 21 percent of land is surveyed and registered in Uganda. The establishment of the Land Information System (LIS) has facilitated speedy and efficient registration of land in Uganda. The LIS has automated land registration processes and has been decentralized across 21 Ministry Zonal Offices (MZOs), bringing land services closer to the people. There have also been efforts to reduce the cost of surveying and titling land through programmes such as Systematic Land Adjudication and Certification (SLAAC). Nevertheless, there still exist land disputes which have led to human rights violations, conflicts and violence and disincentivized investment. Land disputes reduce the level of agricultural growth in Uganda by between 5 percent and 11 percent. The cost of surveying and registering land has remained prohibitive to most Ugandans, especially those who own customary land, which constitutes over 65 percent of the registrable land. SLAAC resulted to only a 5percent increase in surveyed and registered land. 230 There is uncoordinated and unstandardized approach to acquisition of land for public use. Currently, resources for acquisition of land to public use are spread across a number of implementing institutions leading to ad hoc efforts, duplication and disparities in valuation of land. This has highly contributed to delays and high cost of public investment. 231 In addition, there is mismanagement of Government land due to lack of a comprehensive Government land inventory and weak land use planning. This has led to encroachment of Government land and endangering of Government facilities. 232 A foundation has been laid to enable proper management of the environment but more needs to be done to achieve results. The legal and regulatory framework is in place: enactment of the National Environment Act of 2019, review of the National Environment Management Policy, and preparation of guidelines and strategies, notably: 108 108 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 the National Biodiversity Offset Strategy, Sustainable Mountain Strategy, guidelines for sound management of chemicals, Environment and Social Impact Assessment Guidelines and environment mainstreaming guidelines. In addition, restoration of fragile ecosystems including demarcation of riverbanks (160km) and restored degraded sites along riverbanks (200 ha) was initiated. Environmental compliance through monitoring, technical backstopping, ensuring environmental assessments and enforcement of the law, including supporting of livelihoods of communities through tree and fruit growing has also been ensured. However, the environment is increasingly under threat from both natural and man-made drivers of change including; poverty, rapid population growth, unplanned urbanisation, expansion of informal settlements, industrialisation, unregulated mining, low levels of awareness, inadequate information on critical issues and the impacts of climate change and variability among others. Fragile ecosystems including hilly and mountainous areas, riverbanks, lakeshores, wetlands, forests and rangelands are facing encroachment and degradation. 233 Data on air pollution is sparse due to the absence of air pollution detection equipment and there is currently no framework for monitoring and regulating air pollution. The National Environment Management Authority is only able to collect air pollution data in Kampala. Recent studies carried out on air quality in Kampala indicated that the city has the second worst air quality in Africa and that concentrations of particulate matter (PM2.5) were three times higher than the WHO air quality guidelines for ambient air (25 𝜇𝜇g/m3). The air pollution problem is attributed to emissions from increased traffic and reconditioned motor vehicles, and other anthropogenic activities. 234 There is significant increase in temperature at a rate of 0.520 per decade while some districts such as Gulu, Kitgum, Kotido and Kasese registered modest decrease in annual rainfall. While Uganda’s contribution to climate change is negligible accounting for only 0.099 percent of global emissions, it is highly vulnerable to climate change impacts given its low coping capacity. Climate change effects such as frequent and prolonged dry spells as well as erratic and poorly distributed rainfall amplify the level of vulnerability experienced by the majority of the population (68 percent) that are dependent on rainfed agriculture as their source of livelihood. To compensate for the reduced productivity, farmers are forced to encroach on forests and wetlands. Hence, climate change becomes both a driver and a result of environmental degradation starting a vicious cycle of vulnerability. 235 Consequently, Uganda has in the past decades been experiencing a widespread occurrence of natural and man-made hazards including droughts, floods, earthquakes, hailstorms, windstorms, lightening, landslides, fires, conflicts, disease (human, crop and livestock). The country is undergoing increased exposure and vulnerability of population, livelihoods, critical infrastructures and environment to prevailing hazards that will result in frequent economic loss and human mortality if not managed. In the recent past, over 110 schools, 130 health facilities, roads, and bridges were damaged by floods, storms, fire, earthquakes, lightning and also affecting pupils due to limited disaster mitigation measures. In the past 4 years, over 10 different hazards 109 NATIONAL PLANNING AUTHORITY occurred in over 70 districts of the country recording 191 deaths and 55 missing, 468 injuries, and affecting 911,607 people. In the same period, these hazards, destroyed 19,712 and damaged 16,954 houses, and were a cause for relocation and evacuation of 21,943 and 18,451 respectively and damaged 100,605.3 ha of crops. 236 To sum up, enhancing Natural Resources, Environment, Climate Change, Land and Water Management to sustainably increase household incomes and quality of life will be crucial. This will require; sustainably managing water resources and wetlands, consolidating and building on gains made in meteorological services, restoration and conservation of forest cover, strengthening land management, use and planning, reducing pollution, managing and mitigating natural and man-made hazards.

9.3 — Programme Objectives

9.3 Programme Objectives 237 In order to address the above constraints, the objectives of this programme are to: 1) Ensure availability of adequate and reliable quality fresh water resources for all uses; 2) Increase forest, tree and wetland coverage, restore bare hills and protect mountainous areas and rangelands; 3) Strengthen land use and management; 4) Maintain and/or restore a clean, healthy, and productive environment; 5) Promote inclusive climate resilient and low emissions development at all levels; 6) Reduce human and economic loss from natural hazards and disasters; 7) Increase incomes and employment through sustainable use and value addition to water, forests and other natural resources.

9.3.1 — Interventions

9.3.1 Interventions 238 In order to achieve the above objectives, NDPIII will prioritise the following interventions highlighted in Table 9.1. Table 9.1: Programme Interventions and Respective Actors Interventions Actors Objective 1: Assure availability of adequate and reliable quality fresh water resources for all uses 1. Improve coordination, planning, regulation and monitoring of water resources at MWE, LGs, NEMA, catchment level: NFA, MEMD, a. Develop and implement integrated catchment management plans for water MoFA, KCCA, OPM resources catchment areas; b. Develop and implement wetland and forest management plans; c. Develop a national green growth financing and investment plan d. Demarcate and gazette conserved and degraded wetlands; e. Establish functional gender sensitive regional and zonal management committee for water resources; f. Ensure effective early warning and early action for sustainable efficient utilization of water resources g. Maintain natural water bodies and reservoirs to enhance water storage capacity to meet water resource use requirements. 110 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors 2. Strengthen enforcement capacity for improved compliance levels: MoLG, MWE, LGs, a. Procure equipment for monitoring set standards on air, noise, water resources NEMA, NFA, and soil pollution; MoLHUD, KCCA, b. Create a critical mass of human resource to undertake enforcement of set Communities, CSOs, standards and regulations; private sector, DPs, c. Undertake sensitization campaigns on the permitted levels of pollution and UWA, Cultural penalties for exceeding thresholds thereof; institutions d. Build partnerships with stakeholders such as KCCA, Uganda Police, Urban Authorities and non-state actors to enhance compliance. Objective 2: Increase forest, tree and wetland coverage and restore and protect hilly and mountainous areas and rangelands 1. Strengthen conservation, restoration of forests, wetlands and water catchments MWE, NEMA, NFA, and hilly and mountainous areas: MoLG, DLG, UWA, a. Promote rural and urban plantation development and tree planting including MLHUD, OPM the local and indigenous species; b. Formulate economic and social incentives for plantation forests; c. Promote application of performance based sustainable forest management criteria for all forest sector development aspects and scale up agroforestry as a climate smart agriculture practice; d. Establish dedicated fuel wood plantations necessary to contribute to achieving or exceeding net biomass surplus levels; e. Develop wetland management plans to support gazetting and demarcation of existing wetlands; f. Restore the natural integrity of degraded wetlands to their ecological functionality; g. Ensure the protection of rangelands and mountain ecosystems; h. Implement national targets on threatened/endangered species, restoration of natural habitats, management of invasive alien species with support and participation of local communities and indigenous peoples; i. Identify and declare special conservation areas to raise the conservation status of areas outside protected areas that are important biodiversity areas. j. Integrate environmental management in all disaster and refugee response interventions. k. Improve the management of districts and private forests; l. Leverage technology to strengthen enforcement capacity for improved compliance to standard agro-forestry practices. 2. Mobilise and significantly increase financial resources from all sources to MWE, NEMA, conserve and sustainably use natural resources and mitigate disasters MoFPED, NPA, UDB 3. Increase funding for promoting non-consumptive uses of the natural resources MEMD, MoFPED 4. Assure a significant survival rate of planted tree seedlings NFA, MWE, DLG, CSOs, Private Sector, Cultural Institutions & FBOs Objective 3: Strengthen land use and management 1. Complete the rollout and integration of the Land Management Information MLHUD, NPA, System with other systems. MoLG, MTIC, DPs, PSFU, CSOs, Local Communities, LGs 2. Fast-track the formulation, review, harmonisation, and implementation of land MLHUD, MOLG, laws, policies regulations, standards and guidelines. MoJCA 3. Undertake a comprehensive inventory of Government land. ULC, MLHUD, MOLG, KCCA 4. Capitalize the Land Fund to ensure access to land by lawful and bona fide MLHUD, MOFPED, occupants. ULC 5. Strengthen the capacity of land management institutions in executing their MLHUD, MOLG, mandate geared towards securing land rights. ULC, DLBs, Cultural/Religious Institutions 6. Promote land consolidation, titling and banking. MLHUD, MDA’s, LGs, Local 111 NATIONAL PLANNING AUTHORITY Interventions Actors Communities, Private Sector, DPs, CSOs, 7. Acquire land for infrastructure/utility corridors MoLHUD, MoWT, MoFPED, MEMD, UNOC, NITA, MoLG, MoJICA, UEDCL, UETCL, PAU, UNRA, URC, CAA, URF 8. Promote tenure security including women’s access to land . MOLHUD, MOLG, ULC 9. Establish the National Spatial Data Infrastructure (NSDI) to enhance data NPA, MLHUD, integration for planning and development; MOLG, UBOS, UNBOS, MUK, 10. Develop and implement a Land Valuation Management Information System MLHUD, MOLG, (LAVMIS); 11. Promote integrated land use planning. MOLHUD, NPA, all MDAs, LGs, Private Sector Objective 4: Maintain and/or restore a clean, healthy, and productive environment; 1. Develop and implement a framework that reduces adverse per capita MEMD, MOWT, environmental impact of cities (air quality and waste management practises) NEMA, MoTIC, MOLHUD, KCCA, MWE 2. Mainstream environment and natural resources management in policies, MEMD, MoTIC, programmes and budgets with clear budget lines and performance indicators. Urban Centres, b. Improve coordination, regulation and monitoring of environment NEMA management at both central and local government levels; c. Strengthen control and management of chemicals, pollution and environmental disasters; d. Increase funding for decentralized environment management. 3. Formulate and implement vehicle emission standards and sustainable MWE, MoTIC, management of chemicals to curtail the high levels of air, land and water pollution UBOS, UNBS, particularly in urban areas MoFPED NPA, NEMA, CSOs Academia, DPs, MOWT 4. Integrate education for sustainable development in national curricula at all levels MWE, MoES, for an environmentally literate citizenry MoTIC, OPM 5. Undertake applied research and innovation on sustainable consumption and MoTIC, MWE, production to ensure resource use efficiency to reduce domestic material UCPC, Academia, consumption per capita MSTI, UNCST Objective 5: Promote inclusive climate resilient and low emissions development at all levels 1. Building capacity for climate change adaptation and mitigation including MWE, MoLG, hazard/disaster risk reduction: MoFPED, NPA, LGs, a. Promote continuous integration of climate change and disaster risk reduction NEMA, NFA, OPM, in planning, budgeting and reporting; KCCA, Communities, CSOs, private sector, b. Undertake issuance of carbon footprint certificates to support the industrial DPs, UWA sector move towards carbon neutrality; c. Finalize the development of a national Green House Gas Inventory and its Monitoring, Reporting and Verification system. Review Uganda’s 2015 Nationally Determined Contributions in light of local emerging issues and new global climate change action ambition. 2. Promote natural resource accounting to improve the national income MWE, MoLG, LGs, measurement; NEMA, NFA, a. Undertake economic valuation of selected ecosystems and their services; MoLHUD, UBOS, b. Integrate natural capital and ecosystem service accounting into the system of Communities, CSOs, private sector, DPs, national accounts; UWA, Cultural institutions 112 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors c. Build sectoral, institutional and local government capacity in natural capital accounting 3. Mainstream climate change resilience in programmes and budgets with clear MWE, MoWT, budgets lines and performance indicators MLHUD, NPA, a. Scale up use of renewable energy through off-grid electrification and MoFPED, MoLG, LG, Liquefied Petroleum Gas; All Programme Leads b. Build gender response capacity in climate change monitoring and evaluation systems through integration in local government performance assessment and national monitoring frameworks; c. Improve education, awareness raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning; d. Establish eco-friendly municipal and city waste collection and sorting facilities, and systems for recycling and reuse as a remedy for immense methane emissions from open landfills; e. Formulate green and climate change resilient and mitigative building codes for the housing sub-sector. 4. Implement resolutions from negotiation of carbon projects and develop bankable MWE (CCD), NFA, projects; NEMA, MEMD 5. Develop local finance solutions tailored to micro, small and medium enterprises UDB, MWE, engaged in sustainable production and generation of climate change responsive MOFPED, NPA, technologies; Private Sector 6. Build partnerships with stakeholders to formulate instruments such as climate and UDB, MWE, green bonds MOFPED, NPA, DPs Objective 6: Reduce human and economic loss from natural hazards and disasters 1. Strengthen the policy, legal and institutional framework for effective disaster risk OPM, MoLG, LGs, governance, management and response MoJCA, Parliament, Office of the President, MoFPED, MoIA, UPF, MoD, UPDF 2. Institutionalize disaster risk planning in Programmes; NPA, OPM, UNMA, a. Develop a National Disaster Risk Management Plan; UPF, NEMA, MWE, b. Undertake a disaster risk screening of the NDPIII and generate information MAAIF, MEMD, to inform implementation planning; DLGs, MOH, MoLG, c. Finalize and disseminate the National Disaster Risk Atlas; MoTIC, UPDF, d. Strengthen the Disaster Risk Information Management Systems; MoFPED, MoJCA, e. Promote re-enforcement and retrofitting of structures and buildings for MoLHUD, LGs resilience to disasters 3. Enhance capacities for storage, management and distribution of relief OPM, MoFPED, commodities. DLG’s, MAAIF, a. Strengthen the national store and relief food chain management system MoTIC, MWE, MOH b. Ensure timely access of relief food and non-food commodities by disaster victims. 4. Enhance the capacity for resettlement of persons at risk of disasters. OPM, MoLHUD, MoLG, DLG’s, MoWT, MoFPED, MoICT 5. Enhance access and uptake of meteorological information UNMA, MICT & NG, MAAIF, DLG, MoLG MSTI, OPM 6. Install new and adequately equip and maintain existing automatic weather stations UNMA to ensure maximum functionality Objective 7: Increase incomes and employment through sustainable use and value addition to water resources, forests, rangelands and other natural resources 1. Increase investment in value addition to environment and natural resources MoLG, MWE, products and services. MoFPED, LGs, NEMA, a. Increase funding for promoting non-consumptive uses of the natural NFA, KCCA, resources; Communities, CSOs, private sector, DPs, 113 113 NATIONAL PLANNING AUTHORITY Interventions Actors b. Mobilise and significantly increase financial resources from all sources to UWA, Cultural conserve and sustainably use natural resources. institutions, MTIC, MoSTI 2. Increase awareness on sustainable use and management of environment and MWE, NEMA, NFA, natural resources; MoES, MoICT & NG, a. Develop a clear communication strategy on sustainable natural resource MTWA, CSOs and management; Private Sector Cultural and FBOs b. Undertake targeted sensitization campaigns with information packaged in forms tailored to the information needs of recipients; c. Build strategic partnerships with other players such as; private sector, cultural institutions, media and politicians 3. Promote research, innovation and adoption of green appropriate technology to MWE MSTI, foster sustainable use and management of Water Resources & ENR; Academia/research a. Develop a clear research agenda for this programme in partnership with institutions, NEMA, relevant stakeholders; NFA, MWE b. Undertake relevant applied research aligned to development needs and existing gaps 4. Promote forest cluster-based wood processing industries NFA, MWE, MTIC, UIA 5. Support local community-based eco-tourism activities for areas that are rich in NEMA, MWE, NFA, biodiversity or have attractive cultural heritage sites MTWA, MAAIF, MTIC, UDB, MSTI, UNCST 6. Promote payment for ecosystem services, biodiversity offsets and benefit sharing MWE arising from use of biological resources

9.3.2 — Implementation Reforms

9.3.2 Implementation Reforms 239 The following key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Transfer the command of environment police force from Ministry of Internal Affairs to NEMA and NFA to streamline appropriate swift response towards enforcement of environmental laws and curbing environment offenders. 2) Establish environment courts within the judicial system. The backlog in courts derails judgement on environmental crimes which require swift conclusion to avert irreversible cumulative environment degradation effects that continue to occur in the face of slow court processes. 3) Establish district focal points for the Uganda National Meteorological Authority to enhance dissemination of meteorological climate information in the local governments. Currently, this responsibility falls on the district Natural resource and environmental officers who already have a wide range of tasks and this approach has proven ineffective over the years. 114 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Map 9.1: Spatial representation of current wetland degradation

9.3.3 — Programme Human Resource Requirements

9.3.3 Programme Human Resource Requirements 240 Successful implementation of this programme will require addressing the following human resource gaps: Applied groundwater modelling specialists; Atmospheric Scientists; Environmental Law specialists; Faecal sludge management specialists; Geologists and Geophysicists; Geotechnical engineers and dredging specialists; Hydrogeology specialists; Hydrology and Hydraulics specialists; Integrated hydrological and river modelling specialists; Mining Engineers, Metallurgists and Related Professionals; River flood analysis and modelling specialists; Animal Science specialists. Table 9.2 details the status of the availability of skills in short supply whose training is 115 NATIONAL PLANNING AUTHORITY not available in Uganda and skills in short supply with training available in Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 9.2: Qualifications and Skills Needs for: Climate Change, Natural Resources, Environment, and Water Management Programme Estimated 5-Year QUALIFICATIONS AND SKILLS Status Gap Applied groundwater modelling specialists 191 Atmospheric Scientists 143 Faecal sludge management specialists 239 Geotechnical engineers and dredging specialists 96 Hydrology and Hydraulics specialists 478 Integrated hydrological and river modelling specialists 191 River flood analysis and modelling specialists 143 Conservation biology specialists 860 Ecological restoration specialists 765 Ecosystem biologist and biogeochemistry specialists 956 Environmental Engineers 956 Environmental Scientists and Specialists 287 Forest ecology specialists 956 Renewable Energy specialists 287 Soil Science and Soil Fertility specialists 215 Water Science and Quality specialists 956 Key for the table Skills in Short supply and Training Skills in Short supply and Training is not available in country is in-country 116 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 10: PRIVATE SECTOR DEVELOPMENT

10.1 — Introduction

10.1 Introduction 241 The private sector is the engine of growth. Successful businesses drive growth, create jobs and pay the taxes that finance services and investment. In particular, private sector- led industrial development plays a significant role in bringing about the much-needed structural changes that can set the economies on a path of sustained economic growth. In Uganda, the private sector generates 77 percent of formal jobs, contributes 80 percent of GDP, funds 60 percent of all investments and provides more than 80 percent of government domestic revenues. 242 Therefore, strengthening the private sector is crucial to sustainably achieve the industrialization agenda and the goal of this plan. This is the sustainable channel through which inclusive growth and gainful jobs can be generated. Through the private sector, household incomes and quality of life will be enhanced. 243 The aspiration of Agenda 2030 focuses on the development of policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, encourage formalization and growth of micro-, small- and medium-sized enterprises (SDG Goal 8) for inclusive growth and reduce inequality. Agenda 2063 also targets increasing the growth of SMEs to drive industrialization. This is complemented by EAC Vision 2050. The Uganda Vision 2040 calls for direct investment in strategic areas to stimulate the economy and facilitate private sector growth. In addition, the Vision pursues a quasi-market approach, which includes a mix of Government investments in strategic areas and private sector market driven actions. 244 Nevertheless, Uganda’s private sector is weak and uncompetitive to sustainably drive growth. This is due to: (i) high cost of doing business, (ii) limited production and organisational capacity, (iii) absence of a strong supporting environment, (iv) weak enforcement of standards and the proliferation of counterfeits in the market, and (v) inadequate strategic and sustainable government investments and partnerships with the private sector in key growth areas. 245 The goal of this programme is therefore to increase competitiveness of the private sector to drive sustainable inclusive growth. 246 The key results to be achieved over the next five years (FY 20/21 to FY 24/25) are: (i) Reduce the informal sector from 51 percent in 2018/19 to 45 percent in 2024/25; (ii) Increase non-commercial lending to the private sector in key growth sectors, from 1.5 percent in 2018/19 to 3 percent of GDP; (iii) Increase the proportion of public contracts and sub-contracts that are awarded to local firms, from 30 percent to 50 percent; (iv) Increase the value of exports from USD 3,450.7 million in 2017/18 to USD 4,973 million; 117 NATIONAL PLANNING AUTHORITY

10.2 — Situation Analysis

10.2 Situation Analysis 247 The private sector in Uganda is dominated by about 1.1 million Micro, Small and Medium Enterprises (MSMEs) altogether employing approximately 2.5 million people. Generally Ugandan firms face various growth and survival constraints on a number of fronts and this undermines their development and thereby limiting their impact on the economy. With a non-homogeneous private sector, Uganda’s micro, small and medium-sized firms as well as large enterprises face similar challenges but with differences in the magnitude. 248 Uganda has registered some progress in reducing the cost of doing business, but, there remains major financial and logistical impediments. Uganda made a 16 percent improvement in doing business environment in five years, moving from 135th position in 2015 to the current 116th. Improvements were made mainly on contract enforcement. However, more needs to be done in starting a business; dealing with construction permits; getting electricity; trading across borders; registering property; tax payment and getting affordable credit. An SME entrepreneur spends nearly a month to undertake 13 procedures to set up a new company. Majority of MSMEs (74 percent) are also constrained by access and cost of finance. Despite the reforms made in the financial sector, interest rates in Uganda remain high (20–23 percent) comparing unfavourably to its comparators. MSMEs access to finance is limited by stringent financial requirements, particularly land collateral. This limits MSMEs’ growth because they cannot acquire or absorb new technologies nor can they expand to compete in global markets or even strike business linkages with larger firms. 249 Additionally, there are limited options for long-term financing which forces enterprises to use short term finance for long term projects. The limited availability of long-term finance opportunities in Uganda is a result of three basic factors. First, formal savings that could be translated to long-term investments are low, with limited long-term savings in the retirement benefits and insurance sectors. Second, underdeveloped capital markets provide equity and debt finance to only a small number of large firms. Third, development finance institutions lack financial resources to expand their operations. This financing constraint affects local MSMEs more, since they cannot access finance on international markets. This is worsened by the public sector accumulation of domestic arrears owed to the private sector. 19 percent of business enterprises in the formal private sector indicated non-payment of debt and delayed payments for their services and products as one of the key challenges affecting their growth. 250 Despite the improvements in transport infrastructure, inefficiencies in form of timely access to electricity, water and ICT continue increase the cost of doing business. Uganda’s road connectivity and quality has improved. But more needs to be done in water transport, air connectivity, and rail transport systems. Population access to electricity at 20 percent, though an improvement, is unsatisfactory. So is reliability of water supply at 103 out of 141. In addition, ICT adoption at 125 out of 141 is low. 251 As a result of the high costs of doing business, generally, large manufacturing firms’ plants operate below their installed capacity, at slightly above 50 percent. Capacity 118 118 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 utilization for MSMEs was estimated at 73.5 percent lower than Tanzania’s 80 percent but just slightly higher than Kenya’s 71 percent. Further, many MSMEs continue operating informal systems. Those that have formalized keep many of their operations informal. Informal sector operators have identified five main incentives to motivate them to formalize: (i) offering them lower registration fees; (ii) enabling them access affordable credit; (iii) increased awareness about the need to register; (iv) a shorter registration process; and (v) eligibility to support programmes upon registration, in that order. 252 The private sector in Uganda suffers from weak capacity. Despite high MSMEs start- ups, most of the start-ups do not last more than two years (entrepreneurial risk at 38 out of 141). Only 11.6 percent (half of Kenya’s), of MSME firms are internationally- recognized with a quality certification. This is due to; low levels of technology, limited uptake of innovations to continuously improve product quality, inadequate entrepreneurial ability, low skilled labour, and limited capacity to provide for innovation for new products. Support is needed by enterprises to enhance technology and mitigate climate change effects to boost productivity and improve profitability. The country has lacked a clear strategy and incentive mechanism for formalization of businesses except for taxation purposes. If Uganda is to harness its private sector potential a strategy to nurture and support MSMEs to grow and survive beyond five years will be key. Full operationalization of industrial parks is also critical. 253 In addition, the weak or lack of organization of producers, sellers, and other market players reduces their ability to benefit from economies of scale and profitability. Following the weak available cooperative schemes, the capacity of the farmers, traders, and business enterprises to leverage each other’s strength is weak. Ugandan manufacturers and suppliers are still finding challenges in sustaining production and honouring contractual obligations of reliably supplying output. Therefore, revamping the cooperative movements is one key way of mobilizing and organizing private sector actors and resources, as well as increasing the formalization of private activities in the economy. 254 Weak Government support environment constrains the private sector potential. Weaknesses exist in: prevention of non-tariff barriers in regional markets; competition policies and laws which encourage innovations; enforcement of standards and the proliferation of counterfeits. Also, inefficiencies exist in the legal frameworks such as settling disputes and land administration and public sector efficiency. In particular, the absence of an overarching local content policy hinders leveraging large public infrastructure investments to nurture the private sector. There are piece-meal policies and legislations especially in the oil and gas sector to support local content development. The Build Uganda Buy Uganda Policy also has components of promoting the local enterprises to benefit from a number of civil works and other services in the economy. Nonetheless, there is need to establish an overarching comprehensive national content policy to effectively boost the local private sector to harness the multitude of opportunities available 255 To sum up, enhancing the private sector to drive growth will require reducing the cost of doing business, particularly increasing access to and reducing the cost of finance. Also improving timely and efficiency access to utilities and reducing 119 NATIONAL PLANNING AUTHORITY cumbersome procedures will be required. Further, government policy to nurture the private sector will be critical. While these apply to the entire private sector, special focus on nurturing and supporting MSMEs will be important to deliver inclusive growth and jobs. Towards this end, Government needs to prop up winners in MSMEs to enable them surmount survival, management and financial challenges. Here a holistic local content policy in public investments can be a powerful tool to strengthen the private sector. 10.3Programme Objectives 256 In order to address the above constraints, the objectives of this programme are to: 1) Sustainably lower the costs of doing business; 2) Promote local content in public programmes; 3) Strengthen the enabling environment and enforcement of standards; 4) Strengthen the role of government in unlocking investment in strategic economic sectors; 5) Strengthen the organisational and institutional capacity of the private sector to drive growth.

10.3.1 — Interventions

10.3.1 Interventions 257 In order to achieve the above objectives, NDPIII will prioritise the following interventions highlighted in Table 10.1. Table 10. 1: Private Sector Development Interventions and Respective Actors Interventions Actors Objective 1: Sustainably lower the costs of doing business 1. Increase access to affordable credit largely targeting MSMEs MoFPED; Parliament; UDB; a. Capitalize public commercial banks Post Bank; Housing Finance; b. Set up a short-term development credit window for MSMEs Pride-Micro Finance; c. Strengthen use of the e-movable chattels registry Microfinance Support Centre d. Adopt appropriate measures to de-risk private sector lending particularly to the key growth opportunities 2. Increase access to long-term finance MoFPED; UDB; UDC; a. Capitalize and strengthen UDB with a functional MSME financing Parliament; Post Bank; Housing window Finance; Pride-Micro Finance; b. Develop a Development Finance Institutions (DFIs) Policy Microfinance Support Centre c. Capitalise the Project Development Facilitation Fund d. Expand the pension and insurance coverage to increase formal sector savings 3. Mobilize alternative financing sources to finance private investment MoFPED; MTIC; UDB; USE; a. Deepen and widen the capital markets UDC; POST BANK; CMA; UIA, b. Strengthen the legal and regulatory frameworks for Private Equity and NPA Venture Capital c. Build private sector capacity to access Green financing and green growth response 4. Address non-financial factors (power, transport, ICT, business processes etc) UIA and PSFU, IRA; BOU; leading to high costs of doing business TELECOM COMPANIES; USE; MOFPED; CMA; MEMD, MWT, MOFA; MTIC; 120 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors NSSF; BOU; URBRA; MoJCA; LGs Objective 2: Strengthen the organisational and institutional capacity of the private sector to drive growth 1. Improve the management capacities of local enterprises through massive MTIC & UIA; ENTERPRISE provision of Business Development Services geared towards improving firm UGANDA; PSFU; capabilities through; MICROFINANCE SUPPORT a. Strengthening Business Development Services centres CENTRE; UMA; UDB; b. Establishing Business Development Services framework USSIA; LGs, Farmers’ c. Strengthening Industry associations, chambers of commerce and trade associations/cooperatives unions d. Establishing National, regional and global business links for registered local enterprises e. Increased Automation of business processes f. De-risking Sub-county skills-based enterprise associations (EMYOGA) g. Supporting organic bottom- up formation of cooperatives 2. Strengthening system capacities to enable and harness benefits of MTIC; UIRI; MOSTI; UNCSI; coordinated private sector activities EPRC; URSB; LGs, Academia, a. Establish and strengthen research and innovation facilities that are Private Sector, PSFU, UIA accessible to Micro, Small, and Medium Scale Enterprises (MSMEs). b. Develop product and market information systems c. Strengthen the system of incubation centres to support growth of SMEs in strategic areas d. Establish One stop centre for business registration and licensing Objective 3: Promote local content in public programmes 1. Develop and implement a holistic local content policy, legal and institutional MoFPED; MOTIC; MOGLSD; framework PPDA; UNBS; MEMD; LGs 2. Build the capacity of local construction industry to benefit from public MoWT; MOTIC; MOGLSD; investments in infrastructure PPDA; UNBS; MEMD; LGs 3. Establish a public construction company MoFPED, MoWT, UDC, NPA 4. Develop and publicise a transparent incentive framework that supports local MoFPED; MOTIC; UIA investors Objective 4: Strengthen the role of government in unlocking investment in strategic economic sectors 1. Undertake strategic and sustainable government investment and promote MoFPED, MOTIC, UDC, UIA, private sector partnerships in key growth areas UFZA 2. Strengthening research and innovation capacity in support of private and MoSTI, UNCST, UIRI, public investment Academia, NPA, Private sector 3. Implement regional commitments to accelerate intra-regional trade MoFPED, MoTIC, MoFA Objective 5: Strengthen the enabling environment and enforcement of standards 1. Support the national conformity assessment system to attain international MTIC, MFPED, UNBS, recognition through Accreditation Development Partners 2. Rationalize and harmonize standards institutions, and policies at local and MTIC, UIA, UNBS, PSFU, regional level; UMA, URSB 3. Review of legal and regulatory frameworks to remove restrictive legislation PARLIAMENT, PPDA, UIA, and fast track pending bills; MOJCA, UDB, UDC 4. Improve data availability on the private sector; and Improving Dialogue UBOS, PSFU, NPA, MoFPED between the private sector and Government 5. Create appropriate incentives and regulatory frameworks to attract the private MOFPED, MWE, MTIC, NPA, sector to finance green growth and promote LED PSFU, UDC, UMA, MoLG, LG 6. Fully service the industrial parks and increase access to them by the local UIA, MoFPED, MTIC, UMA private players 7. Increase accessibility to export processing zones UFZA, MTIC, UEPB, UMA, MoFPED 121 NATIONAL PLANNING AUTHORITY

10.3.2 — Implementation Reforms

10.3.2 Implementation Reforms 258 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Empowering the one-stop centres already established at UIA to make prompt decisions on matters raised by the private sector without delays. 122 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 11: MANUFACTURING 11.1Introduction 259 Manufacturing is essential for building a resilient, integrated, independent and self- sufficient economy. It has a high potential for enhanced economies of scale for factor productivity and deeper, more dynamic and stronger forward and backward linkages with other sectors. In addition, it has a greater diversification into a variety of economic activities. With a huge agricultural and mineral potential, good weather, a young and expanding population and a strategic location at the heart of regional trading blocks, development of a robust manufacturing sector is expected to accelerate Uganda’s industrialization agenda. 260 Manufacturing provides an opportunity to strengthen the private sector to drive growth through increasing production for export expansion of high value products and import substitution ultimately contributing to job creation, increased incomes and improvement in quality of life. 261 The aspiration of Agenda 2030, among other things, is to promote inclusive and sustainable industrialisation and foster innovation (SDG 9) and promote full and productive employment and decent work for all (SDG 8). Aspiration 1 of Agenda 2063 aims at transforming Africa’s economies through beneficiation from Africa’s natural resources, manufacturing, industrialization and value addition. EAC Vision 2050 targets leveraging industrialization for structural transformation and improved intra-regional and global trade. Specifically, it targets increasing manufacturing contribution to GDP by 10percent. Uganda Vision 2040 states that a strong and competitive industrial base is important to create employment, advance technology and a resilient economy. To achieve this, the Vision targets; developing industries that utilise the local potential, attracting industries that utilise green technologies from fast emerging economies, offshoring industries, establishing economic lifeline industries, and investing in strategic industries. 262 However, Uganda’s manufacturing sub-sector is small, uses basic technology and creates low quality and quantity of gainful jobs. This is due to: (i) lack of requisite infrastructure to support manufacturing; (ii) limited access to financing mechanisms that can support manufacturing (iii) weak SMEs in the industrial sector; (iv) proliferation of substandard goods and counterfeits on the market; (v) Poor linkage between trade and industrial development (vi) lack of a support system to nurture innovations to full commercialisation (vii) high cost of doing business, (viii) low labour productivity due to inadequate skills, and (ix) weak legal framework to support and promote manufacturing 263 The goal of the programme therefore, is to increase the range and scale of locally manufactured products for import substitution and increased exports. 264 The key results to be achieved over the next five years will be: i) Reduce the value of imported medical products and pharmaceuticals from USD 285.6 million to USD 200 million; 123 NATIONAL PLANNING AUTHORITY ii) Increase the share of manufactured exports to total exports from 12.3 percent to 19.8 percent; iii) Increase the industrial sector contribution to GDP from 27.1 percent to 28.6 percent; iv) Increase the share of manufacturing jobs to total formal jobs from 9.8 percent to 10 percent; v) Increase share of labour force employed in the industrial sector from 7.4 percent to 10 percent; and vi) Increase manufacturing value added as a percentage of GDP from 8.3 percent to 10 percent. 11.2Situational analysis 265 Uganda’s industrial sector mainly comprises manufacturing, mining and quarrying, construction, and utilities (electricity and water supply) sub-sectors, whose industries are categorized into formal and informal. The manufacturing sub-sector is composed of food processing, manufacture of beverages and tobacco, textiles clothing and footwear, paper and printing, chemicals, petroleum and other chemical products, non-metallic minerals, basic metals and metal products among others. Of these, food processing, beverages and tobacco industry, saw milling, paper and printing, bricks and cement, steel and metal products, and textile clothing and footwear industry, comprise the biggest share. Specifically, industries include: 11 operational Sugar factories, 25 tea processing, 5 cement, 2 vertically integrated textile mills, 7 leather tanning and 23 involved in the iron and steel industry. 266 Currently the industrial sector’s contribution to GDP is 27.6 percent; with mining and quarrying contributing 2.0 percent, manufacturing 15.8 percent, electricity 1.3 percent; water 2.3 percent and construction 6.6 percent. This level of industrial contribution to GDP is below the 35 percent mark for countries aiming to achieve middle- income status. The services sector makes the biggest contribution to GDP, standing at 43.2 percent, with agriculture taking the third place at 22.6 percent. 267 Uganda’s manufacturing sub-sector consists predominantly of last-stage (end- product) assembly and raw material processing. This implies that many goods are imported as intermediate and capital goods to support production processes increases the country’s import bill. Such goods include those like machinery specialized for particular industries and specialized medical equipment that the country has no immediately available local capacity to produce in the medium term due to among others, technological constraints. Also, while the country has enough raw material for manufacturing, little or no value is added especially in the following products; petroleum goods, iron and steel, and sugars and sugar preparations among others. This worsens the country’s terms of trade and products exported are very sensitive to market price fluctuations which make forex earning very unpredictable. 268 To support and promote the manufacturing activities, there is need for appropriate infrastructure especially in terms of transport (road and railway) plus low-cost adequate energy. Over the NDPII period, the country made significant progress in terms of road construction, extending the network to cover most parts of the country. Additionally, a number of power plants have been constructed, which now puts the 124 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 generation capacity close to 2,000 MW. In 2018, a quarterly tariff adjustment of power was applied. Since its introduction there has been a reduction in power tariffs by between 2 to 0.8 percent for medium and large industrial users, respectively. There has also been progress towards the development of industrial parks including Kampala Industrial and Business Park (KIBP) Namanve, Luzira, Bweyogerere, Jinja, Mbale, Soroti, Mbarara SME, Kasese and Karamoja Industrial Parks. This has created indirect employment resulting in approximately 20,000 jobs for the construction workers and local artisans. These efforts have led to the growth of the southern corridor which has been effective in generating employment and income generating opportunities within a spatial context. 269 However, the infrastructure remains inadequate (transportation infrastructure and energy; power outages, low voltage for large consumers), which increases costs of production, disrupts production and lowers the sales revenue of manufacturing firms. The annual growth of demand for electricity in Uganda remains high at 12 percent. This is worsened by high electricity tariffs which stand at about USD 0.16 per kWh. Weak transportation infrastructure and attendant high costs erode Uganda’s competitiveness at regional and international levels. Transport related costs to business in Uganda is estimated at 40percent which is twice the cost of the same services in other countries. 270 Nurturing manufacturing requires affordable long-term financing in order to produce products at competitive prices. To meet this need, the Uganda Development Bank was recapitalised and Uganda Development Corporation was revived. However, their capitalisation still remains low and the former’s lending rates still remain closely similar to those of existing commercial banks, which hinders the sector growth. Furthermore, section 28 of UDC Act is not yet operationalized to provide the Industrialization Fund. 271 Low quality and fake manufactured products constrain the sector as they outcompete genuine products. In FY2017/18, 357 standards were developed; 899 product certification permits were issued; 1,128 market outlet inspections were conducted; 119,149 consignment of imported goods were inspected; 12,799 equipment were calibrated; and 772,059 equipment were verified. Although, the pre-export verification for conformity to standards (PVOC) started, its impact is yet to be felt to the level that is expected. Unscrupulous traders are exploiting the relaxed trade regime in Uganda to import fake goods on the local market, or even producing these items. The cost of complying with standards is as high as 0.07 – 0.1 percent of turnover compared to acceptable levels of 0.02percent of turnover. There is direct need to devise other means to fight substandard goods to supplement the amendments to the law which have increased the penalties for production and distribution of sub-standard goods by producers and marketers. Apart from sub-standard items, there are also counterfeits which involve illegally replicating the well-known brand names and designs on their packaging and labels with cheaper and sometimes substandard versions e.g. fake electronic appliances, shoes, adulterated coffee, rice, agricultural inputs, locally made soft drinks mainly water and juices, among others. Major investors now look out on how counterfeits are managed before investing in any country. The Anti-counterfeit Bill to fight counterfeits has been 125 NATIONAL PLANNING AUTHORITY drafted and is currently before Parliament. There is need for expeditious enactment of this law and strengthening of UNBS to properly man the products on the market. 272 Support system to nurture innovations to commercialisation is key to manufacturing. Manufacturing is boosted through establishment of industries that stem from innovations coming from the country’s research and development institutions and system. Over the NDPII period, a number of initiatives have been made towards this including the establishment of the Ministry of Science, Technology and Innovation, the Presidential Innovations Fund, among others. However, challenges still remain as most of the initiatives to facilitate innovations to full commercialisation are scattered and disjointed across the sectors. With many innovators unsure of where to go to receive the necessary support. 273 Progress in ease of doing business can unlock manufacturing potential. Government launched the e-licencing portal as a central repository for all business licences in the country in a bid to reap benefits of e-registration such as transparency, one stop access to all relevant information, accountability and reduced opportunities for corruption through the use of online transactions. However, implementation has been slow and investors and manufacturers in particular continue to face high cost of doing business ranging from bureaucratic procurement processes, multiple licences and other fee requirements; difficulty in linking to logistical support services, the inability to obtain skilled nationals locally to run factories; public sector corruption and the general challenges of being a land-locked country. Uganda’s rank on the Ease of Doing Business deteriorated to 122 in 2017 when it had been 115 in 2016 (a slide of seven places) in a one year. While it is also important to note that the year before had seen a leap forwards by 13 places in between 2015 and 2016. There is therefore need to make further reforms in improving the framework within which the economy is supported to grow by strengthening electronic systems in submission of export and import documentation; reviewing business and procurement laws and regulations in ways that reduce bureaucracy, duplication and tackling public sector corruption especially in enforcement of contracts. 274 The industry sector is dominated by small and medium enterprises (SMEs), which make up some 93.5 percent of firms operating in the sector. These are usually not able to reap the benefits of economies of scale and, given the strong correlation between firm size and export capacity, consequently have difficulties competing internationally. Of the top 500 firms in Africa in 2017, Uganda has only three companies on the list, and pointedly, none are in the manufacturing sub-sector. Manufacturing primarily engages in end-product assembly and raw materials processing, producing low value-added goods such as food and beverages, wood and wood products, textiles, leather, and metallic and non-metallic fabrication. Furthermore, manufacturing value-added per capita remains low at around USD 27 compared to USD 57 for low-income countries and USD 1,277 for the global average. In addition, medium and high-technology activities do not play a major role in manufacturing exports, constituting just 13.8 percent of total manufactured exports, lower than regional neighbours Kenya and Tanzania. 126 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 275 Conducive legal framework to support and promote manufacturing is crucial. The Ministry in charge of Trade and Cooperatives launched the Buy Ugandan Build Uganda (BUBU) Policy together with its implementation strategy in 2017. This has been provided for in both the Industrial Policy and the Trade Policy approved by Government in 2008. BUBU has played a key role in ensuring the utilisation of local natural resources in the country’s production processes. For example, the use of cement and iron bars locally procured in the construction of Karuma Hydro Power Project, procurement of office furniture from Uganda Prisons and supply of uniform locally contracted to all government hospitals. This notwithstanding, implementation of these policies and legal provisions still remains slow. Furthermore, the tax regime is not phased across the manufacturing value chain, favouring processors more that manufacturers i.e it is constant irrespective of the extent of value addition thus laying a heavier burden on those who invest deeper upstream than those on the downstream ends of the value chains. There is need for revision of the tax regime to encourage and attract more investment in manufacturing and for a deliberate effort to support local production and consumption. The local content law should also be enacted such that these policies are enforceable. 276 A combination of both light and heavy manufacturing industries has been prioritised over the NDPIII period in order to build a resilient, integrated, independent and self- sufficient economy. These fall in two categories of (1) Light Manufacturing: Textiles & Apparels; Shoes; Assembly of electronic and medical items; Paper and paper products; Chemicals, petro-chemicals and pharmaceuticals; and Cereal and cereal products; Tiles, sanitaryware, plumbing, fixtures & fittings; (2) Heavy Manufacturing: Iron and steel; Cement production; Tractor and Automotive manufacturing and assembly. Specifically, this programme focuses on products prioritised in the import substitution strategy (section 4.6.3) that are not catered for by the other programmes. 277 Over the next five years, to nurture manufacturing, government will focus on development of the new corridors in the growth triangle anchored around three Manufacturing Hubs (Gulu; Mbarara and Mbale). Specifically, focus will be on: i) constructing four fully serviced industrial parks; (ii) strengthening MSMEs in the industrial sector to improve their capacity and product quality; (iii) promoting the use of appropriate technology in manufacturing processes; (iv) investment in support systems to nurture innovations to commercialisation; (v) increase the utilisation of the country’s natural resources for production; (vi) improving labour productivity in manufacturing; vii) attracting FDI in the manufacturing sector and linking these to local manufacturers and SMEs to be part of the suppliers of the global value chain; (viii) strength the capacity for standards development, enforcement and harmonization and (ix) strengthening the legal framework to support and promote manufacturing. 11.3Programme Objectives 278 In order to address the above constraints, the objectives of this programme are to: 1) Develop the requisite infrastructure to support manufacturing in line with Uganda’s planned growth corridors (triangle); 127 NATIONAL PLANNING AUTHORITY 2) Increase value addition for import substitution and enhanced exports; 3) Develop financial and logistical systems to increase access to regional and international markets; 4) Strengthen the legal and institutional framework to support manufacturing.

11.3.1 — Interventions

11.3.1 Interventions 279 In order to achieve the above objectives, NDPIII will prioritise the following interventions highlighted in Table 11.1. Table 11.1: Manufacturing Interventions and Respective Actors Intervention Actors Objective 1: Develop the requisite infrastructure to support manufacturing in line with Uganda’s planned growth corridors (triangle) 1. Construct 4 fully environmentally sustainable serviced industrial parks MTIC, MFPED, MoWT, (1 per region) MEMD, MoWE, MAAIF, MICT&NG, UIA, UFZA, UIRI, NEMA, LGs Development Partners 2. Provide appropriate financing mechanisms to support manufacturing MTIC, MFPED, UDB, MWE a. Develop local finance solutions b. Build strategic partnerships that increase sustainable FDI to manufacturing 3. Develop the transport networks to support manufacturing especially in MTIC, MFPED, MoWT, resources areas like Muko, Karamoja region (road, water, rail and air) MEMD, MoWE, Development Partners 4. Develop infrastructure linking the neighbouring countries especially MTIC, MFPED, MoWT, DRC and South Sudan 5. Upgrade industries to make them sustainable, with increased resource- MTIC, MWE, UIRI, NEMA use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes Objective 2: Increase value addition for import substitution and enhanced exports; 1. Support existing local manufactures for both medical products and MoH, Medical related pharmaceuticals manufacturers, Academic & research institutions, Health Workers’ Professional Associations, NCRI, International Health Agencies 2. Provide government support for installation of recycling facilities for MTIC, UNBS, UMA, UDB, Polyethylene terephthalate (PET), High-Density Polyethylene (HDPE) Private sector Low-Density Polyethylene (LDPE) and Polypropylene (PP) 3. Support local automotive assembling and manufacturing MTIC, MOSTI, UIA, Academia, Private sector 4. Support existing sugar factories to produce industrial sugars MTIC, UMA, UDB, Private sector Objective 3: Increase access to regional and international markets 1. Expand the range of manufacturing standards and enforce applicable MTIC, MoFA, UNBS, UEPB, regulations 2. Establish a sliding scale export incentive regime MTIC, MFPED, URA, UMA 3. Establish a sliding scale export financing rate MTIC, MFPED, URA, UEPB, UMA 4. Establish 4 export logistics centres MTIC, MFPED, URA, UEPB, UMA, Development Partners, 128 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Intervention Actors 5. Establish 4 border markets to facilitate trade with regional neighbours MTIC, MoFA, URA, UMA, (especially at the South Sudan and Congo borders) UEPB, Development Partners 6. Sign bilateral agreements to guarantee market access MTIC, MoFA, MoJCA, a. For infrastructure linking to DRC Cabinet, Parliament b. For infrastructure linking to South Sudan 7. Strengthen information management and negotiation for greater access MTIC, MoFA, UEPB, to targeted markets 8. Support the national conformity assessment system to attain international MTIC, MFPED, UNBS, recognition through Accreditation Development Partners 9. Establish Export Credit Guarantee Schemes for SMEs MTIC, MoFA, UEPB Objective 4: Strengthen the legal and institutional framework to support manufacturing 1. Enact and enforce the local content law MTIC, MoJCA, Cabinet, Parliament 2. Enforce the laws on counterfeits and poor-quality products MTIC, MoIA, UNBS, UPF 3. Change the tax regime to attract more investors in manufacturing; MTIC, MoJCA, URA, downstream parts of the value chains Cabinet, Parliament, UMA 4. Formulate, implement and enforce standards, laws, and regulations to MWE, MTIC, UNBS, UIA facilitate adoption to green manufacturing

11.3.2 — Programme Human Resource Requirements

11.3.2 Programme Human Resource Requirements 280 Successful implementation of this programme will require addressing the following human resource gaps: Electromechanical Equipment Assemblers; Manufacturing/Production Engineers; Manufacturing Production Technicians; Material Engineers; Machinists; Ophthalmic Labouratory specialists; Plastic Technology specialists; Manufacturing Robotics Technicians and specialists; Automotive Specialty Technicians; Chemical Plant and System Operators; Electrical and Electronic Engineering specialists; Fabric and Apparel Patternmaker specialists; Hydroelectric Plant specialists; Industrial Machinery Mechanics; Precision Instrument and Equipment Repairers; Metallurgy and Materials Science; Mechanical Engineering Technicians; Hydroelectric Plant specialists among others. Table 11.2 shows the total number of required expertise over the next five years by field of study for this program and the status of skills in Short supply and Training is not available in country and Skills in Short supply and Training is in-country. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 11.2: Qualifications and Skills Needs for Manufacturing Programme Estimated 5-Year QUALIFICATIONS AND SKILLS Status Gap Electromechanical Equipment Assemblers 627 Manufacturing / Production Engineers 197 Manufacturing Production Technicians 430 Material Engineers 538 Machinists 179 Ophthalmic Labouratory specialists 448 Plastic Technology specialists 574 Manufacturing Robotics Technicians and specialists 359 Automotive Specialty Technicians 414 129 129 NATIONAL PLANNING AUTHORITY Table 11.2: Qualifications and Skills Needs for Manufacturing Programme Estimated 5- Year QUALIFICATIONS AND SKILLS Status Gap Chemical Plant and System Operators 556 Civil Engineering specialists 323 Electrical and Electronic Engineering specialists 538 Fabric and Apparel Patternmaker specialists 430 Hydroelectric Plant specialists 592 Industrial Machinery Mechanics 556 Mechanical Engineering Technicians 287 Metallurgy and Materials Science 215 Precision Instrument and Equipment Repairers 538 Key for the table Skills in Short supply and Training Skills in Short supply and Training is not available in country is in-country 130 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 12: INTEGRATED TRANSPORT INFRASTRUCTURE AND SERVICES 12.1Introduction 281 Seamless integrated infrastructure is crucial to any economic development. Infrastructure plays an important role in contributing to a higher rate of economic growth leading to improvement of the country's standard of living. Infrastructure is key to integration in global and domestic trade and market systems. As such, transport infrastructural problems limit a country’s ability to engage properly and harness benefits in the globalization process. Uganda’s transport infrastructure is an integral part of its regional and international competitiveness. Productivity in virtually every sector of the economy is affected by the quality and performance of the country’s transportation, water, power supply and other types of infrastructure. Therefore, access to and efficiency of transport infrastructure is critical to Uganda’s competitiveness and ability to harness its regional and globalization potential. 282 People, goods and services need to be moved from one place to another. Integrated transport infrastructure and services contribute to the NDPIII goal of increased household incomes and quality of life by linking growth opportunities in agriculture, tourism and minerals. This not only facilitates national and international integration, but also supports job creation, poverty alleviation, and inclusiveness. 283 The aspiration of Agenda 2030 is to build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation by 2030 (SDG 9). Similarly, Agenda 2063 (Goal 10) aspiration is to put in place the necessary infrastructure to support Africa’s accelerated integration and growth, technological transformation, trade and development. Relatedly, infrastructure is the first of the five pillars in the EAC Vision 2050 that seeks to ensure access to modern, fast and affordable infrastructure that is essential for economic development and wellbeing of the population. Additionally, the Uganda Vision 2040 aims to have access to world class infrastructure and services, and modern technology to improve productivity and production. 284 However, transport infrastructure and services are still inadequate and disjointed due to: (i) transport investment prioritization being biased towards road transport over other modes; (ii) high cost of transport infrastructure and services; (iii) inadequate integrated land use and transport planning; (iv) inadequate transport asset management; (v) weak and disjointed policy, legal, regulatory, and institutional framework for infrastructure and services; and (vi) high vulnerability of the transport sector to the impacts of climate variability and change. 285 The goal of the programme is, therefore, to develop a seamless, safe, inclusive and sustainable multi-modal transport system. 286 The key results to be achieved over the next five years are presented in Table 12.1. 131 NATIONAL PLANNING AUTHORITY Table 12.1: Key Programme Results Key result area Indicators Baseline 2024/25 1.Reduce Average 1.1 Within GKMA 4.1 3.5 average travel travel time 1.2 Within other Cities N/A 2.0 time (min per (min/km) 1.3 National roads 1.1 1.0 Km) 1.4 District Roads 1.0 1.0

1.5 — Inland water transport (MW to PB in Hrs) 18Hrs 12 Hrs

1.5 Inland water transport (MW to PB in Hrs) 18Hrs 12 Hrs

1.6 — Passenger rail services 0.75 0.5

1.6 Passenger rail services 0.75 0.5

1.7 — Freight rail services Mombasa -K’la (days) 19 10

1.7 Freight rail services Mombasa -K’la (days) 19 10 2.Reduce freight Freight 2.1 Inland (on Road): tarmac 802 500 transportation transportation 2.2 Inland (on Road): Murrum 1,130 1,000 costs (per ton costs (per ton 2.3 Inland (on Rail): 0.04 0.02 per km): per km) 2.4 Inland (on water): 500 300

2.5 — From coast to Kampala (on Road) - USD 0.77 0.60

2.5 From coast to Kampala (on Road) - USD 0.77 0.60

2.6 — From coast to Kampala (on Rail) (in USD): 0.05 0.03

2.6 From coast to Kampala (on Rail) (in USD): 0.05 0.03

2.7 — From coast (MW) to Kampala (PB) on water - 0.06 0.04

2.7 From coast (MW) to Kampala (PB) on water - 0.06 0.04 USD 3.Reduce unit Unit cost of 3.1 Upgrading roads to paved standard (Bn/per 3.1 3.0 cost of building Km) building transport 3.2 Rehabilitation/ reconstruction of paved roads 1.8 1.75 transport infrastructure, (Bn/per Km) infrastructure, per Km 3.3 Average cost for construction of unpaved/ 40 30 per Km gravel road (in mn)

3.4 — Rehabilitation of metre gauge rail 5 4.5

3.4 Rehabilitation of metre gauge rail 5 4.5 infrastructure (Bn/ Km)

3.5 — Establishment of Aids to Navigation 0 5

3.5 Establishment of Aids to Navigation 0 5

3.6 — Establishment of search and rescue facilities 200,000 180,000

3.6 Establishment of search and rescue facilities 200,000 180,000 (USD) 4 Increase stock Stock of 4.1 Kms of paved National Roads 4,971 7,500 of transport transport 4.2 Kms of paved urban roads 1,248 1,748 infrastructure infrastructure 4.3 Permanent way /railway road (Km) 262 462

4.4 — Construction of Roll-on Roll-off vessels 5 7

4.4 Construction of Roll-on Roll-off vessels 5 7 (international)

4.5 — Construction of domestic (Ro’Pax) passenger 10 15

4.5 Construction of domestic (Ro’Pax) passenger 10 15 ferries

4.6 — Ferry crossings 9 13

4.6 Ferry crossings 9 13 5 Increase Average 5.1 Tarmac roads – years 20 average infrastructure years infrastructure life span 5.2 First class murram 2 years life span 6 Reduce Fatality per 6.1 Road 3,689 3,289 fatality and 100,000 6.2 Water 160 50 causality per persons per mode of mode of transport transport (road, water, rail) 12.2Situation Analysis 287 Appropriate inter-modal transport connectivity will be key in harnessing Uganda’s advantage of land-linked to tap regional and global markets. Toward this, first, Uganda has to diversify its connectivity to global markets. Currently, the country mainly relies on the northern corridor as its major trade route. The corridor links the East African Economic centres to the World through Port Mombasa. There is need to reduce over 132 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 reliance on the northern corridor by developing other corridors. This will require, development of Bukasa inland port (together with Jinja, Portbell and Bukakata ports as feeder ports); the rehabilitation of the meter gauge railway line to Pakwach, Kampala and the Busoga loop; the development of a road network for bulk transportation of large volumes of cargo from the industrial parks in Kampala to Bukasa; as well as the deployment of the related water transport infrastructure to facilitate connections across Lake Victoria to Kisumu port onward to Mombasa and to Mwanza port onward to Dar- es- salaam. This will increase access to and reduce the travel time to Mombasa and Dar- es-Salaam as well as increase volume of cargo to these two ports. Secondly, Uganda needs to invest in appropriate transport infrastructure connecting to regional neighbours that are also land-linked. In this regard, transport connectivity and corresponding regional agreements to DRC and South Sudan need prioritizing. 288 In addition, appropriate inter-modal transport connectivity will be crucial to inclusively tap the domestic economic opportunities. The collapse of the meter gauge railway with the interconnecting Busoga line has left much of the Bukedi, Busoga and Teso sub-regions isolated and inaccessible to trade with the neighbouring regions and the rest of the country. The same is true of Karamoja. Consequently, these three sub-regions remain the poorest. To address poverty in these areas and harness their economic potential, the transport network in these regions has to be improved. This will require: i) upgrading transport infrastructure around L. Kyoga to facilitate connections across the lake linking Nakasongola, Lango, Teso and Busoga through tarmacking of roads around the lake and introduction of ferry services on the lake. This will open the remote areas around the lake to tourism and trade; and ii) rehabilitation of the meter-gauge railway for bulk transportation of goods from the heart of the country to Jinja/Bukakata and then onward to Bukasa inland port. 289 Uganda’s transport network is unbalanced, dominated by road transport. In FY2018/19, about 96 percent of freight cargo and passenger traffic was delivered by road. As a result, the country is not able to optimally utilize the different transport modes to efficiently and effectively service the other sectors of the economy. 290 Significant progress has been made in developing the road transport, nonetheless, more attention is required for District, Urban and Community Access (DUCA) roads. The country’s total road network is 159,366 km of this: 79,947 km (50 percent) are Community Access Roads; 38,603 km (24 percent) are District Roads; 20,854 km (13 percent) are National Roads; and 19,959 km (13 percent) are Urban Roads. Uganda’s paved roads deficit is large; only 4,971 km (23.8 percent) of the national roads, 1,188km (6 percent) of urban roads and 145km (0.38 percent) of district roads are paved. The paved national roads increased from 19 percent in 2008, to 23.8 percent in 2019 but this is short of NDPII target of 6,000 km by 1,029 km. The National Roads network in fair to good condition is 93 percent for paved roads and 75 percent for unpaved roads against the target of 82 percent and 66 percent, respectively. DUCA roads are important for providing access to social and economic services, however, a big proportion of these roads are in bad condition. 133 NATIONAL PLANNING AUTHORITY 291 Non-Motorised mode of Transport (NMT) requires more attention. In Uganda, over 80 percent of people use walking and cycling as the most sustainable mode of transport. As such the non-motorized mode of transport should be promoted and given priority over motorized modes in order to discourage use of private cars. However, there is insufficient investment and regulation of NMT thus accounting for high levels of congestion and road accidents. 292 Uganda’s Air transport potential has not been adequately tapped, particularly to unlock the tourism opportunity. The country has only one operational International Airport, Entebbe which is currently being expanded and upgraded to accommodate demand of increasing passengers and cargo traffic. Additionally, government is constructing a new international airport at Kabaale in Hoima district. In regard to regional and local transport, Government intends to develop five regional (Arua, Gulu, Pakuba, Kidepo and Kasese) aerodromes to promote trade and tourism. 293 The Railway Transport is in dire need of investment to harness its potential. Since the termination of the failed concession in 2018 modest progress has been registered. In FY2018/19, the Corporation delivered a total of 196,789 tons against an NDPII target of 144,210 tons and 529,596 passengers against the planned 400,000 passengers. A total of 3,031 trains were run during the financial year 2018/2019. Nevertheless, significant challenges need addressing. Due to under investment, railway transport is uncompetitive due to low train speeds (25kph) and unfavourable tax regime that makes fuel costly. This has favoured road transport. Further, limited railways network coverage and ageing infrastructure; of the 1,266 km of metre gauge line railway network only 330 km is operational. The current capacity of the rolling stock is very low due to long periods of deferred maintenance of the assets. Additionally, poor maintenance regime for locomotives, wagons, coaches and handling equipment. The Corporation has 4 mainline locomotives out of which 3 were active during the FY2018/19, with an average availability of about 40 percent. URC currently has 1,317 wagons available on the network, out of which 600 were active as of June 2019. 294 The potential of Uganda’s lakes/rivers to improve connectivity if national road network is great. For instance, by FY2016/2017, UNRA had 9 operational ferries linking national roads as shown in table 12.2. Therefore, developing maritime potential is key to improving interconnectivity and efficiency of other modes of transport. Table 12.2: Performance of UNRA ferry services (UNRA 2018/19) No. Ferry Crossing Districts Linked by The percent Utilization Passengers Ferry Availability (percent) Carried (percent) 1 Laropi - Umi Moyo and Adjumani 100 107 856,875 2 Obongi - Sinyanya Moyo and Adjumani 100 102 629,409 3 Bisina - Agule Katakwi-Kumi 100 101 334,578 4 Masindi - Kungu Kiryandongo and Apac 99 109 214,694 5 Namasale – Zengebe Amolatar and 99 97 352,970 Nakasongala 6 Nakiwogo - Buwaya Wakiso and Entebbe 98 98 499,926 134 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No. Ferry Crossing Districts Linked by The percent Utilization Passengers Ferry Availability (percent) Carried (percent) 7 Mbulamuti Ferry Kayunga and Kamuli 98 88 792,976 8 Kiyindi - Buvuma Kiyindi – Buvuma 93 93 194,871 9 Wanseko - Panyimur Buliisa and Nebbi 86 92 237,073 Total 97 99 4,113,372 295 Maritime transport infrastructure and services have remained underdeveloped and are dominated by small motorized and non-motorized boats. Uganda’s water transport systems have three components namely: wagon ferry services on Lake Victoria; short distance road vehicle ferries acting as ‘road bridges’; and informal sector operations by individual canoes. The principal lake and river transport system includes Lake Victoria, Lake Kyoga, Lake Albert and Lake George, together with River Kagera, the Victoria Nile and the Albert Nile. Currently, both motorized and non-motorized vessels ply the above lakes and rivers. Some water routes are served by wagon ferries while others are served by road bridge vehicle ferries. The wagon ferry routes are Port Bell-Mwanza and Port Bell-Kisumu which also connect to the rail network. There are seven bridge vehicle ferries including three on Lake Victoria, two on Victoria Nile, one on Lake Albert and one on Albert Nile. The wagon ferry routes of Port Bell –Mwanza and Port Bell-Kisumu remain without any national carrier on them. Due to the lack of wagon ferries, poor connecting infrastructure and often a lack of appropriate rolling stock, maritime transport as the traditional transport system has deteriorated, and private sector operations have become increasingly important on Lake Victoria. 296 Transport safety has remained a challenge. Although the number of fatalities per 10,000 vehicles has been reducing over the years; in absolute terms, road traffic fatalities rose from 2,845 in 2014/15 to 3,500 fatalities in 2017/18. This translates into approximately 10 people dying daily as a result of road accidents on Uganda’s roads. On water transport, 160 fatalities were registered during the financial year 2018/19. Railway transport also had a number of derailments and capsizements. Inadequate enforcement of road and inland water transport vehicle standards results in the poor state of some of the vehicles and vessels leading to high accidents. 297 Uganda’s high and rising cost of transport infrastructure investments and services need addressing in order to sustainably acquire an integrated transport infrastructure system. Over the past 15–20 years, the road sector has experienced significant increases in prices of road construction and maintenance. The average construction cost for upgrading roads to paved standard with bituminous surface treatment during the FY2018/19 was UGX 3.1 billion per kilometre as compared to UGX 2.36 billion per kilometre in the previous year. The average cost of reconstruction/rehabilitation of the paved roads was UGX 1.8 billion per kilometre as compared to UGX 1.96 billion per kilometre for the previous year. These rising and high costs are due to: 135 NATIONAL PLANNING AUTHORITY i) The high costs of acquiring Right of Way (RoW). The huge costs associated with compensation of Project Affected Persons (PAPs) escalate costs of infrastructure and increase project implementation delays. This problem is further worsened by speculators who acquire and/or develop land along the proposed transport infrastructure corridors in anticipation of high compensation from government. Examples of projects where land acquisition has escalated costs of project implementation include Kampala- Entebbe Expressway (51.4 Km) with land and property compensation valued at UGX 331 billion (or USD 89 million), Kampala Northern Bypass (17.5 Km long) where land and property compensation worth UGX 83billion (equivalent to USD22 million) was approved. Government has also lost land along existing transport infrastructure (right of way) to illegal encroachers, mainly due to lack of enforcement of existing laws. Encroachers have made developments in wetlands, forests, along railway lines, air strips and aerodromes that have been non-operational for a long time. Ironically, encroachers expect and receive compensation when government needs to upgrade/expand existing transport infrastructure. ii) Weak local content capacity due to weak local construction industry. About 80 percent of civil works contracts in Uganda are undertaken by foreign/International road construction companies and a big portion of the road construction requirements are imported. The local construction industry is weak in terms of equipment, technical and financial capacity. Consequently, the country is unable to develop a minimum threshold of competent national expertise for construction, operation and maintenance of national transport infrastructure. Only 28 percent of all road contracts signed in FY2018/19 were allocated to local contractors. Taking all other factors constant, foreign companies should charge higher prices because they require a higher profit margin, cannot do small contracts, and have a higher price for domestic risks. iii) Procurement delays due to the numerous whistle-blowers and administrative reviews have affected ability of the entity procuring contracts on time. Section 90 and 91 of the PPDA Act, 2003, require that once any complaint is received, the procurement process should be suspended until that complaint is settled. This requirement has led to the delay in procurement of various infrastructure projects. 298 There is need to prioritize transport infrastructure management and maintenance to increase its lifespan and returns on projects. Uganda’s transport network is poorly maintained, with only 28 percent of required road maintenance being implemented in FY2018/19. The funding for road maintenance and rehabilitation is not yet linked to road usage represented by both traffic loading (cargo freight) and traffic volumes (number of vehicles). This inadequate maintenance of existing stock of transport infrastructure reduces returns on investment and their lifespan. 299 An Integrated transport Planning approach will be required to adequately address immediate and emerging transport infrastructure challenges. Explosive growth in vehicle population coupled with inadequate transport planning has led to traffic congestion along the roads and highways, road crashes, high road maintenance costs, 136 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 increase in air pollution, delay in reaching the city centre and delay to access business centres. The motorized vehicle fleet almost doubled in less than 5 years, from 739,036 in 2012 to 1,355,090 in 2018, of which more than 50 percent are in the Greater Kampala Metropolitan Area (GKMA). Boda-bodas almost tripled in 8 years, from 354,000 in 2010 to 1.034 million in 2018. Research, development and innovation need to be carried out to provide evidence-based solutions to address the poor forecasting and management of traffic flow, limited capacity of urban transport infrastructure, inefficient public transport, pollution, road crashes and fatalities, indiscipline of road users and weak enforcement of traffic regulations. The 15-year National Transport Master Plan, including the Transport Master Plan for Greater Kampala Metropolitan Area approved by Cabinet in 2008 (NTMP/GKMA 2008-2023) covered all modes of transport except oil and gas pipelines. However, more than 80 percent of the investments and expenses were spent on roads. 300 Uganda does not have an approved national transport policy. Consequently, there are existing gaps in planning procedures; policy, objectives, plans, programmes, projects, and evaluation. In addition, the existing legal frameworks have a number of gaps that need to be addressed, as indicated in Error! Reference source not found.3. These affect the operations of transport infrastructure and services. Table 12.3: Summary of legislative gaps Sub sector Gaps Road 1. Classification of roads 2. Road infrastructure for road safety, including provisions for pedestrians and cyclists 3. Storm water drainage, 4. Damage to the road and its furniture, 5. Use of Public-Private-Partnerships in construction, management and maintenance 3 Rail 1. Alignment of URC’s current status with the URC Act and PERD Act 2. Independent regulation of safety, plus investigation of accidents. 3. Use of more environmentally friendly operating procedures and efficiencies, including regulations requiring use of greener locomotives. Inland Water 1. Certification of vessels plus measures to prevent marine pollution Transport 2. Strengthened safety regulations, including, search and rescue 3. Promotion of private sector participation in water transport development Air Transport 1. Splitting of regulatory and operational functions of CAA 2. Need for strengthened security measures, including provision for an Accident and Investigation Unit 3. Regulations for the pilots and operation of drones Urban 1. Powers to franchise bus routes Transport 301 Furthermore, public transport regulation is weak especially in urban areas. The taxi industry is self-regulated and services are provided by 14-seater minibuses, which are not suited to mass transport. Services are not timetabled or integrated, and vehicles are generally poorly maintained. The problem is further worsened by use of unregulated motorcycles (‘boda-bodas’) and tricycles (‘tukutuku’). Institutional and regulatory 3 Section 2(1)(a) of the Public Private Partnerships Act 2015 states that the Act applies, inter alia, to the design, construction, maintenance and operation of road infrastructure and services. 137 137 NATIONAL PLANNING AUTHORITY mechanisms for improving public transport and the provision of mass transit are lacking. In addition, some institutions have conflicting mandates. 302 Lack of a transport integrated Management Information System: The transport infrastructure and services sector lack an integrated MIS. Together with the lack of real- time surveillance mechanisms on the various transport modes, this incapacitates the quick application of solutions to, say, change the signal timings and/or respond to a road/inland water accident, as well as the limited use of results to inform policy decisions. 303 Over the next five years, Uganda needs to focus on; (i) investing in a resilient inter- modal transport infrastructure that adequately connects the country to opportunities; (ii) reducing on the high cost of transport infrastructure and services; (iii) undertaking an integrated land use and transport planning; (iv) investing in transport asset management; and (v) addressing the policy, legal, regulatory, and institutional framework for infrastructure and services. 12.3Programme Objectives 304 In order to address the above constraints, the objectives of this programme are to: 1) Optimize transport infrastructure and services investment across all modes; 2) Prioritize transport asset management; 3) Promote integrated land use and transport planning; 4) Reduce the cost of transport infrastructure and services; 5) Strengthen, and harmonize policy, legal, regulatory, and institutional framework for infrastructure and services; 6) Transport interconnectivity to promote inter and intra-regional trade and reduce poverty.

12.3.1 — Programme Interventions

12.3.1 Programme Interventions 305 In order to achieve the above objectives, NDPIII will prioritize the following interventions highlighted in Table 12.4. Maps 12.3 and 12.4 present a spatial representation of the major transport infrastructure projects arising from the planned interventions. Table 12.4: Infrastructure Interventions and Respective Actors Interventions Actors Objective 1: Optimize transport infrastructure and services investment across all modes 1. Implement an integrated multi-modal transportation hub (air, rail, road, MoWT, MoFPED, MoLHUD, PPDA, water) MoLG, MoJCA, LGs, UNRA, URC, CAA, URF, 2. Construct, upgrade and climate proof strategic transport infrastructure MoWT, MoFPED, MoLHUD, PPDA, (tourism, oil, minerals and agriculture) MoLG, LGs, MoJCA, UNRA, URC, CAA, URF, 3. Increase capacity of existing transport infrastructure and services MoWT, MoFPED, MoLHUD, PPDA, MoLG, MoJCA, UNRA, URC, CAA, URF, 138 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors 4. Implement an inclusive mass rapid transport system (Light Rail Transport MoWT, MoFPED, MoLHUD, PPDA, (LRT), BRT/Mass Bus Transport (MBT) and cable cars) MoLG, MoJCA, UNRA, URC, CAA, URF, 5. Provide Non-Motorized Transport infrastructure within urban areas MoWT, MoFPED, MoLHUD, PPDA, MoLG, MoJCA, UNRA, URC, CAA, URF, 6. Rationalize development partner and government financing conditions MoWT, MoFPED, MoLHUD, PPDA, MoLG, MoJCA, UNRA, URC, CAA, URF, Objective 2: Prioritize transport asset management 1. Rehabilitate and maintain transport infrastructure MoWT, MoFPED, MoLHUD, PPDA, a. URF adequately capitalized to fund maintenance costs MoLG, MoJCA, UNRA, URC, CAA, URF, 2. Implement a transport infrastructure planning and PIM system MoWT, MoFPED, MoLHUD, PPDA, MoLG, MoJCA, UNRA, URC, CAA, URF 3. Enforce loading limits URA, UNRA, UPF, URC, CAA 4. Adopt cost-efficient technologies to reduce maintenance backlog MoWT, UNRA, URC, CAA, 5. Develop local construction hire pools MoFPED, & MoWT 6. Scale up transport infrastructure and services information management MoWT, UNRA, URC, CAA, MoICT, systems NITA a. Develop an information system on road management b. Scale up the transport sector data management system c. Develop an integrated meter-gauge rail service information system Objective 3: Promote integrated land use and transport planning 1. Acquire infrastructure/ utility corridors MoWT, MoFPED, MEMD, MoLHUD, UNOC, NITA, MoLG, MoJCA, UEDCL, UETCL, PAU UNRA, URC, CAA, URF 2. Develop and strengthen transport planning capacity UNRA, URC, CAA, URF, MoFPED, MoWT, MoLG 3. Develop the National Transport Masterplan aligned to the National MoWT, MLHUD, UNRA, URC, Physical Development Plan CAA, URF 4. Develop Transit-Oriented developments along transport infrastructure MoWT, MoFPED, MoLHUD, PPDA, corridors (such as roadside stations) MoLG, MoJCA, UNRA, URC, CAA, URF, Objective 4: Reduce the cost of transport infrastructure and services 1. Implement cost-efficient technologies for provision of transport MoWT, UNRA, URC, CAA, infrastructure and services 2. Strengthen local construction capacity (industries, construction MoWT,UNRA, URC, CAA, companies, access to finance, human resource etc.) a. Develop and implement a strategy for strengthening local construction capacity b. Establish a construction equipment hiring pool 3. Promote Research, Development and Innovation (RDI) including design UNRA, URC, CAA, URF, MoFPED, manuals, standards and specifications MoWT, MoLHUD, PPDA, MoLG, MoJCA Objective 5: Strengthen and harmonize policy, legal, regulatory and institutional framework for infrastructure and services 1. Review, update and develop transport infrastructure and services policies, MoWT regulations and standards and laws 2. Enforce relevant transport infrastructure and services policy, legal, MoWT, MoLG, MoLHUD, UPF, regulatory and institutional frameworks UNRA, CAA, URC, 3. Streamline governance and coordination of transport infrastructure and MoWT, MoFPED, MoLHUD, PPDA, services MoLG, MoJCA, UNRA, URC, CAA, URF, 4. Monitor and evaluate transport infrastructure and services policy, legal and MoWT, MoFPED, MoLHUD, PPDA, regulatory framework MoLG, MoJCA, UNRA, URC, CAA, URF, 139 NATIONAL PLANNING AUTHORITY Interventions Actors 5. Strengthen existing mechanisms to deal with negative social and MoWT, MoFPED, MoLHUD, PPDA, environmental effects MoLG, MoJCA, UNRA, URC, CAA, URF, UAC, MoGLSD, LGs Objective 6: Increase transport interconnectivity to promote inter and intra-regional trade and reduce poverty 1. Upgrade transport infrastructure around L. Kyoga, Albert, Victoria and MoWT, MoFPED, MoLHUD, PPDA, River Nile to facilitate connections MoLG, MoJCA, UNRA, URC, CAA, URF, 2. Develop the Tororo Inland Port MoWT, MoFPED, MoLHUD, PPDA, MoLG, MoJCA, UNRA, URC, CAA, URF, 3. Rehabilitate, upgrade and extend the meter-gauge railway (including MoWT, MoFPED, MoLHUD, PPDA, Jinja/Bukakata to Bukasa inland port) MoLG, MoJCA, UNRA, URC, CAA, URF, 4. Upgrade transport infrastructure particularly in the Karamoja area to MoWT, MoFPED, MoLHUD, PPDA, promote mineral exploitation and industrialization in that area MoLG, MoJCA, UNRA, URC, CAA, URF, 5. Construct and upgrade cross border multi-modal transport infrastructure MoWT, UNRA, URC

12.3.2 — Implementation Reforms

12.3.2 Implementation Reforms 306 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Develop and implement service and service delivery standards against which performance will be accessed; 2) Consolidate all railway projects under the Uganda Railways Corporation that is mandated with implementation of railway construction. 140 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Map 12.1: NDPIII Roads Projects 141 NATIONAL PLANNING AUTHORITY Map 12.2: Core Transport Infrastructure Projects 142 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

12.3.3 — Programme Human Resource Requirements

12.3.3 Programme Human Resource Requirements 307 Successful implementation of this programme will require addressing the following human resource gaps: Air Traffic Safety Electronics Technicians; Transport Planning specialists; Ship’s Engineer; Railway Safety and Control Systems specialists; Signalling Technicians; Flight Instructor; Automotive Electrician; Civil Engineers; Aircraft Pilots and Related Associate Professionals; Civil Engineering Technicians; Mechanical Engineering Technicians; Civil Engineering Labourers; Mechanical Engineering Technicians; Civil Engineering Labourers; Mechanical Engineers; Air Traffic Controllers; Airline management specialists among others. Table 12.6 details the status of the availability of skills in short supply whose training is not available in Uganda and skills in short supply with training available in Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 12.5: Qualifications and Skills Needs for: Integrated Transport Infrastructure and Services Programme QUALIFICATIONS AND SKILLS Status Estimated 5-Year Gap Air Traffic Safety Electronics Technicians 115 Transport Planning specialists 72 Ship’s Engineer 45 Railway Safety and Control Systems specialists 36 Signaling Technicians 36 Ships’ Engineers 27 Flight Instructor 65 Automotive Electrician 288 Civil Engineers 215 Aircraft Pilots and Related Associate Professionals 172 Civil Engineering Technicians 158 Mechanical Engineering Technicians 143 Civil Engineering Labourers 129 Mechanical Engineers 115 Air Traffic Controllers 62 Airline management specialists 36 Key for the table Skills in Short supply and Training is Skills in Short supply and Training is not available in country in-country 143 NATIONAL PLANNING AUTHORITY CHAPTER 13: SUSTAINABLE ENERGY DEVELOPMENT 13.1Introduction 308 The availability of sustainable (reliable, affordable and clean) energy services is critical for economic growth, poverty reduction, as well as the social and cultural transformation of society. The impact of growth on the demand and consumption of energy is usually experienced through expanded industrial and service sectors and increased income levels. Sustainable development and utilization of energy resources is required to allow the current and future generations meet their energy needs. 309 Energy Development is fundamental for exploitation of key growth opportunities. It facilitates the industrialization agenda through promoting sustainability, reducing the cost of doing business, enabling production, ultimately contributing to increased competitiveness, sustainable economic growth and improved quality of life. 310 The aspiration of Agenda 2030 is to achieve universal access to electricity by 2030 (SDG 7). This is complemented by Agenda 2063 (Aspiration 1). Furthermore, SDG 9 calls for building resilient infrastructure, promoting inclusive and sustainable industrialization as well as fostering innovation. In particular, the EAC Vision 2050 sets an ambitious target of increasing the energy production from 3,965MW in 2014 to an estimated 70,570MW in 2030. Additionally, the Uganda Vision 2040 aims to have access to clean, affordable and reliable energy to facilitate industrialisation, among others. 311 However, the access to sustainable energy is still low due to: (i) over reliance on biomass sources in the energy mix; (ii) constrained electricity transmission and distribution infrastructure; (iii) limited access to off-grid solutions; (iv) limited productive use of energy; (v) long lead time of energy projects; (vi) low levels of energy efficiency; and (vii) uncoordinated intra and inter sectoral planning. 312 The goal of the programme is therefore, to increase access and consumption of clean energy. 313 The key results to be achieved over the next five years are: (i) Increase primary energy consumption from 15.20 million tonnes of oil equivalent to 21.74 million tonnes in 2025; (ii) Increase proportion of the population with access to electricity from 24 percent in FY2018/19 to 60 percent; (iii) Increase per capita electricity consumption from 100 kWh in FY2018/19 to 578kWh; (iv) Reduce share of biomass energy used for cooking from 88 percent in FY2018/19 to 50 percent; (v) Increase the share of clean energy used for cooking from 15 percent in FY2018/19 to 50 percent; 144 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 (vi) Increase transmission capacity from 2,354km in 2018/19 to 4,354km of high voltage transmission lines; and (vii) Increase grid reliability to 90 percent. (viii) Increase national LPG uptake from the current 1percent to 8 percent on the energy balance.

13.2 — Situation Analysis

13.2 Situation Analysis 314 Uganda’s energy mix is biased towards biomass. The primary energy consumption increased by 9.8percent from 13.84 million tonnes in 2016 to 15.20 million tonnes of oil equivalent in 2018 (Energy Balance, 2018). The energy consumption mix comprises oil products, bio mass and electricity. Biomass contributes 88percent in form of firewood, charcoal and crop residues. This has adverse socioeconomic implications on health, environment, gender and household productivity. Annually Uganda losses 120,000 hectares of forest cover of which 60percent (72,000 hectares) is due to charcoal and firewood. A Ugandan household emits 30 tonnes of carbon per year compared to 5 tonnes in UK. Biomass is followed by oil products accounting for 11percent and electricity at 2percent. Households (63.5percent) comprise the largest energy consumer group followed by industry (20.1percent), transportation (8.2percent), commercial/public (3.4percent,) and others (4.3percent). 315 Biomass is Uganda’s predominant cooking fuel used by the population with 85 percent using firewood and 13 percent using charcoal, mainly in the urban and peri- urban areas. The total charcoal demand is 2.09 million tonnes as of 2019 generating employment for about 200,000 people in production, transportation and trade. Most of the firewood is obtained by cutting forests which has significantly contributed to the reduction in forest cover. Currently the country suffers a biodegradation loss of USD 2.3 billion, 25 percent of which is wood fuel. 316 The total installed electricity generation capacity now stands at 1,182 MW including grid and off grid supply (FY 2018/19). This is set to increase to about 1,800 MW in 2020 after Karuma is fully commissioned and other small generation plants come on board in FY2020/21. Most of the electricity is generated from hydro (79.5 percent large and small plants), thermal plants 8.7 percent, bagasse co-generation 8.2 percent, solar PV 3.5 percent with the remaining 1 percent imported from neighbouring countries of Rwanda and Kenya as well as diesel and biomass constituting 0.1 percent. Generation capacity is constrained by the long lead time of energy projects. For instance, it takes on average about 10-years from conceptual design to commissioning of a hydro power project. Additionally, there is inadequate planning for an appropriate optimal energy generation mix to meet the needs of the country. 317 In regard to electricity transmission, the country is constrained by inadequate evacuation of power and limited electricity transmission infrastructure coverage (Map 13.1). Inability to evacuate power presents financial loss to the Government from deemed energy clauses in Power Purchase Agreements. However, over the past five years, a total of 629 km of high voltage electricity transmission lines has been added to improve 145 145 NATIONAL PLANNING AUTHORITY the network bringing the total length to 2,569.8 km. Construction of an additional 518 km of HV transmission lines is ongoing, including; the 400kV Karuma-Kawanda; the 400kV Karuma-Olwiyo; the 132 KV Karuma-Lira and the Lira-Agago-Achwa. However, even with these additions, some parts of the country are yet to be covered including; Karamoja, Muko and West Nile. 318 Electricity distribution is characterized by a dilapidated network, multiple and uncoordinated players and use of distribution network for transmission over long distances. As a result, electricity distribution accounts for the highest technical and commercial losses on the entire grid. Nonetheless, there has been a significant reduction in losses from 35 percent in 2007 to 16.8 percent in 2019. The distribution network increased from 40,279.0 kms in 2017 to 45,423.1 km in 2018. This was mainly attributed to the grid extensions by the Rural Electrification Agency. To date, all district headquarters have been connected to the grid with the exception of Kaabong, Kotido and Buyende which are under implementation and Buvuma that is at feasibility study stage. 62 percent of sub-counties in the Country are electrified. There are plans underway for the electrification of 545 un- electrified sub county headquarters and townships as well as load growth centres within the sub-counties and town ships. 319 Constraints in transmission and distribution limit the use of existing electricity supply for domestic use to around 600 MW, suppressing up to 450MW of demand (2019) and increasing cost of service by a further USD 0.10/kWh. The maximum demand including exports has increased from 591.2 MW in 2017 to 656.2MW in February 2019. 320 At 100 kWh per capita, Uganda currently has one of the lowest rates of electricity consumptions per capita in the world. Access to electricity was at 28 percent in 2019 compared to the Sub-Saharan Africa average of 42 percent4. By the end of 2018, there were 1,352,735 consumers connected to the distribution network signifying a 15 percent (174,923) increment from 2017. The majority of the consumers on the network are classified as domestic (92 percent), whereas the other consumer categories, including commercial, industrial and street lighting combined constituting about 8 percent. On the contrary, industry consumes about 67 percent of the total electricity production, while domestic and commercial categories consume about 21 and 12 percent, respectively. To optimise electricity consumption, demand side management programmes have been implemented to reduce the energy bills for various energy consumers. These include investments and awareness creation in energy efficient technologies, energy auditing and standards. Additional measures are needed to increase industrial energy consumption. 4 World energy outlook 2018 146 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Map 13.1: Existing Electricity transmission network 321 Over the next five years, Uganda needs to focus on: i) increasing access to sustainable energy and transitioning from biomass to more efficient energy sources, ii) upgrading and expansion of the transmission and distribution networks for improved reliability, iii) 147 NATIONAL PLANNING AUTHORITY integrated planning for a diversified energy generation mix, including renewable and alternative energy sources (hydro, solar PV, wind, geothermal and nuclear) iv) increasing industrial output and energy consumption for sustained economic development; v) improving energy efficiency on the supply and demand side; and, vi) building technical capacity and strengthening intra and inter-sectoral and institutional coordination.

13.3 — Programme Objectives

13.3 Programme Objectives 322 In order to address the above constraints, the objectives of this programme are to: 1) Increase access and utilization of electricity; 2) Increase generation capacity of electricity; 3) Increase adoption and use of clean energy; and 4) Promote utilization of energy efficient practices and technologies.

13.3.1 — Interventions

13.3.1 Interventions 323 In order to achieve the above objectives and programme results, NDPIII will prioritize the following interventions in Table 13.1with the attendant projects spatially represented in Map 13.2. Table 13. 1: Energy Interventions and the Respective Actors Interventions Actors Objective 1: Increase access and utilization of electricity 1. Rehabilitate the existing transmission network; MEMD, UETCL, LGs 2. Expand the transmission network to key growth economic zones (industrial and MEMD, UETCL, MOLHUD, science parks, mining areas and free zones, etc.) UIA, UFZA, UMA, ERA, MOFPED, DPs 3. Construct transmission lines to the DRC Congo, Northern Tanzania and Southern MEMD, UETCL, MoFPED, Sudan MoFA 4. Expand and rehabilitate the distribution network including rural and hard-to-reach UEDCL, UMEME, MEMD, areas (grid expansion and densification, last mile connections, evacuation of small ERA, REA, MOLHUD, LGs, generation plants, quality of supply projects) DPs, MPFPED 5. Develop renewable off-grid energy solutions (Construct 10,000 km of medium ERA, MEMD, LGs, DPs, voltage networks and 15,000 km of low voltage network). UEDCL, MOFPED 6. Establish mechanisms to reduce the end-user tariffs. ERA, MOFED, 7. Develop ICT solutions to enable efficient and effective cascade Management of MoICT, MoSTI, REA, the dams along the Nile MEMD 8. Develop and enforce standards on quality of service in the energy industry UNBS UNBS, MEMD, ERA, UEGCL, UEDCL, UETCL, REA, PSFU 9. Review the existing Acts (Electricity Act, 1999 and Atomic Energy Act, 2008) ERA, MEMD, UEGCL, and develop legislation for geothermal to promote exploration, development and UETCL, UEDCL, REA utilization of Uganda’s geothermal resources for social and economic transformation and energy efficiency. Objective 2: Increase electricity generation capacity 1. Develop medium and small power plants (Muzizi HPP, Nyagak, biogas UEGCL, ERA, MEMD, cogeneration). MOLHUD, MOFPED, DPs, MWE, NEMA 2. Undertake preliminary development of large generation plants (construction for UEGCL, ERA, MEMD, Ayago 840 MW, feasibility for Kiba 330 MW and Oriang 392 MW) MOFPED, MWE, UWA, NEMA 3. Seek approvals for construction of a nuclear power generation plant MEMD Objective 3: Increase adoption and use of clean energy 148 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors 1. Construct 200 off-grid min-grids based on renewable energies ERA, MEMD, LGs, DPs, UEDCL, MOFPED 2. Promote use of new renewable energy solutions (solar water heating, solar drying, MEMD, ERA, CSOS, solar cookers, wind water pumping solutions, solar water pumping solutions) LGs, MOFPED, MoH, MAAIF, MoES 3. Adopt the use of electric transport solutions e.g. solar powered motor cycles, MEMD, CSOs, MoWT, bicycles and tricycles MoH 4. Develop a framework for net metering ERA. MEMD, PSFU, UETCL, UEDCL 5. Build local technical capacity in renewable energy solutions MEMD Objective 4: Promote utilization of energy efficient practices and technologies 1. Promote uptake of alternative and efficient cooking technologies including rural MEMD, ERA, CSOS, areas (electric cooking, domestic and institutional biogas and LPG); LGs, MOFPED, MoH, MAAIF, MoES, UECCC 2. Invest in LPG infrastructure MEMD, UNOC 3. Promote the use of energy efficient equipment for both industrial and residential MEMD, ERA, LGS, consumers; CSOs, DPs 4. Introduce Minimum Performance Standards for selected electrical appliances. UNBS, MEMD, ERA, UEGCL, UEDCL, UETCL, REA, PSFU

13.3.2 — Implementation Reforms

13.3.2 Implementation Reforms 324 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Government should consider restructuring the sector to reduce the multiplicity of players to lower costs, increase efficiency and improve coordination; 149 NATIONAL PLANNING AUTHORITY Map 13.2: Spatial Representation of Core Energy Projects 150 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

13.3.3 — Programme Human Resource Requirements

13.3.3 Programme Human Resource Requirements 325 Successful implementation of this programme will require addressing the following human resource gaps: Nuclear Physicists; Engineering Thermodynamics specialists; Environmental Geologists; Petroleum Engineering specialists; Renewable Energy Systems specialists; Energy Systems and Climate Change specialists; Power System Dynamics and Control specialists; Petroleum and Natural Gas Refining Plant Operators; Geoscientists; Energy Geoscientists; Geologists and Geophysicists; Petroleum Geologists; Energy Geoscientists; Electrical engineers; Electrical and Electronic Equipment Assemblers; Power Electronics and Drives specialists; Power line installation and maintenance specialists; Chemical and Physical Science Technicians among others. Table 13.2 details the status of the availability of skills in short supply whose training is not available in Uganda and skills in short supply with training available in Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 13. 2: Qualifications and Skills Needs for: Energy Development Programme Estimated 5-Year QUALIFICATIONS AND SKILLS Status Gap Nuclear Physicists 478 Engineering Thermodynamics specialists 430 Environmental Geologists 430 Petroleum Engineering specialists 430 Renewable Energy Systems specialists 430 Energy Systems and Climate Change specialists 382 Power System Dynamics and Control specialists 335 Petroleum and Natural Gas Refining Plant Operators 287 Geoscientists 191 Petroleum Geologists 191 Energy Geoscientists 143 Geologists and Geophysicists 96 Electrical engineers 956 Electrical and Electronic Equipment Assemblers 526 Power Electronics and Drives specialists 335 Power line installation and maintenance specialists 287 Chemical and Physical Science Technicians 191 Key for the table Skills in Short supply and Skills in Short supply and Training Training is not available in is in-country country 151 NATIONAL PLANNING AUTHORITY CHAPTER 14: DIGITAL TRANSFORMATION

14.1 — Introduction

14.1 Introduction 326 ICT is a fulcrum of development. It is an accelerator, amplifier, and augmenter of change. It has a huge potential to improve national productivity by making Government and business enterprises more efficient, effective and globally competitive. It is therefore a crucial driver of social and economic development. However, the ICT landscape is itself changing and government must take deliberate steps to keep this pace through the development and adoption of new strategies that can be leveraged to realize the country’s digital future. 327 The aspiration of Agenda 2030 under SDG 9 is to significantly increase access to information and communications technology and provide universal and affordable access to the internet. In addition, SDG 17 seeks to enhance the usage of enabling technology, specifically information and communications technology. Similarly, Agenda 2063, (Goal 10) aspiration is to double ICT penetration and contribution to GDP. Further, the aspiration of EAC Vision 2050 is to build EAC’s ICT capacities to encourage innovation and increase competitiveness. The Uganda Vision 2040 identifies ICT among the key fundamentals as well as an opportunity to spur Uganda’s transformation into a modern and prosperous country. 328 Despite the potential that ICT has, utilization of its services across the country is still limited due to: (i) limited network coverage; (ii) poor quality services (iii) high cost of end user devices and services; (iv) inadequate ICT knowledge and skills; and (v) limited innovation capacity. 329 The goal of the programme is therefore, to increase ICT penetration and use of ICT services for social and economic development. 330 The key results to be achieved over the next five years are: (i) Increase ICT penetration (Internet penetration from 25 percent to 50 percent, Digital Terrestrial Television signal coverage from 56 percent to 95 percent, 70 percent NBI connectivity in Government MDAs/DHq; 90 percent national broadband coverage with minimum speed of 8 Mbps (ii) Reduce the cost of ICT devices and services (unit cost of 1Mbps /month of internet on the retail market from USD 237 to USD 70, unit cost of low entry smart phones from UGX 100,000 to UGX 60,000 and cost of a computer from UGX 1,600,000 to UGX 800,000); (iii) Create 30,000 direct jobs annually within the ICT sector; (iv) Increase local ICT innovation products developed and commercialized from 72 to 282; (v) Provide 80 percent of government services online. 14.2Situation Analysis 331 Over the NDPII period, the information and communications services continued to grow at an average growth rate of 14.8 percent with the main drivers being the 152 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 telecommunications followed by the broadcasting activities. Contribution from other activities such as computer programming as well as the ICT trade and manufacturing industries remain low. The sector contribution to GDP averaged at 3.1 percent and significantly contributed to national revenue. The growth is attributed to considerable investments made by both government and private players in expansion of infrastructure coverage, development of e-services among others. This consequently resulted in an upward trend in the usage of and access to ICTs. 332 Total telephone subscriptions increased from 20.5 million in 2015 to 23.2 million in 2017 resulting in a tele density of 66.9 percent and the number of internet users also increased from 6.2 million users in 2015 to 9.8 million users in 2017. This translated into an internet penetration rate of 25 percent. However, broadband access in Uganda is still largely mobile and in 2017, of the total number of users only 10,273 were fixed broadband which resulted in a 0.1 percent fixed broadband penetration rate. The low fixed broadband access implies that there is little progress in promoting broadband access to anchor institutions like schools, libraries, health centres, and Local Government offices and that a critical mass of institutions and businesses are not using broadband services to be competitive. 333 To improve service delivery and increase uptake of e-services, Government developed common core infrastructure such the National Data Centre, rolled out a series of horizontal shared services that cut across different public sector organization and several electronic governments (e-Government) systems across various MDAs/LGs. However, there is still duplication of IT applications and services within Government. Generally, Uganda continues to lag behind comparable countries in Africa in the global e-Participation Index (assesses citizens’ use of the available online services and infrastructure), at position 91 of 193 countries. There was also a drop in the Networked Readiness Index (NRI) from 110 in 2013 to 121 out of 139 countries in 2016. Uganda dropped from rank/IDI value 149/2.14 in 2015 to rank/IDI value 158/1.90 in 2016 (ICT Development Index, year). However, in 2017, it improved by six places to rank 152 out of 176 countries with an IDI value of 2.19. The improvement in the IDI index is attributed to the major infrastructural developments in mobile network coverage and optic fibre network however, the utilization of ICT in the country is still low and the benefits from ICT use have not been fully harnessed. While development in ICT infrastructure remains essential, the Plan will focus on increasing the use of ICTs for acceleration of the entire economy and the programme will support the digital transformation and the move towards digital (smart) health, digital (smart) agriculture, digital (smart) manufacturing, digital (smart) cities among others. 334 Over the years, cybercrime has experienced tremendous increase in level of sophistication. As a result, the risk exposure has broadened involving malicious actors seeking to gain financially through illicit cyber means, unlawfully obtain sensitive information, cause damage to organizational reputation, effect disruption of normal service provision, influence erosion of trust in use of ICT enabled services, effect severe damage to digital infrastructure and property, execute cyber terrorism attacking sovereign 153 NATIONAL PLANNING AUTHORITY Governments and their citizens. The country has, however, made significant strides in national cyber security enhancement which include: development and implementation of the National Information Security Framework (NISF); establishment of the Uganda National Computer Emergency Response Team and Coordination Centre; and development of twelve information security standards, among others. This resulted in an improvement in Global Cybersecurity Index score from 0.536 in 2017 to 0.621 in 2018 though there was a drop in the position from 50th in 2017 to 65th out of 175 in 2018. Uganda still needs to enhance protection of essential services, protection of personal data and cyber crisis management. 335 Efforts were made to incubate the youth to develop local products that can be consumed locally and even exported. Toward this, a Government supported hub was constructed at UICT Nakawa. There are about twenty privately managed ICT hubs such as Hive, Innovation Village, and Outbox located in and around Kampala and no hubs in the other regions of the country. The ecosystem such as the information technology parks that would attract anchor companies to the country have not been established and the interaction between the triple-helix (academia, government, and ICT industry) has remained relatively weak. 336 The ICT revolution and generally the increasing uptake of digital communications channels had a considerable impact on postal sector. It witnessed an 80 percent drop in the domestic ordinary letter posted from 864,281 in 2015 to 168,386 in 2017. However, there was an increase in domestic Expedited Mail Service. Postal subsector will need to embrace the digital transformation and diversification of postal services. It remains very relevant in promoting e-commerce in cases where the physical delivery of items is required and in extending digital services to the rural areas and bridging the digital divide through the transformation of all postal centres into e-service access centres. 337 The internet is a great enabler for sustainable development and the benefits can be effectively accrued if three constraints; cost of access, penetration and reliability are properly managed. The total optical fibre network both Government and private owned spans around 12,000 km covering 49 percent of the districts and 24 percent of the sub counties with presence at all the border points. However, there is duplication of the fibre routes by both the public and private sector operators thus the effective national coverage is less than 4,000 km and the fibre network route is limited to the major urban centres, with most of the rural areas currently underserved. Uganda's broadband infrastructure also has a significant quality of service challenge. 338 The cost of internet access remains high compared internationally at an average of USD 84 per Mbps. Nonetheless, the cost of internet bandwidth has been progressively falling. The price of internet for MDAs and LGs has significantly dropped, from an average cost of 1 Mbps/month of USD 300 in 2015 to USD 70 in 2018. The commercial ISPs have accordingly slashed their prices for 1 Mbps/month from an average of USD 515 in 2015, down to USD 237 in 2018. High price of data is one of the main reasons why many people are not using the internet and associated services. It remains a major stumbling block to meaningful deployment of ICT in socio-economic development. 154 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Generally, the high cost of communication negatively affects the competitiveness of Uganda and is detrimental to the growth of the local ICT sector. 339 Over the next five years, Uganda will focus on promoting the use of ICT in the entire economy and society through: (i) deployment of secure, integrated and cross sector infrastructure; (ii) developing and promoting usage of quality communication and e- services, (iii) digital inclusion and citizen participation; (iv) ensuring standardization and interoperability of systems; (v) enhancement of national cyber security (vi) promoting innovation and commercialisation of ICT products; (vii) enhancing digital literacy and developing skills; (viii) supporting development and uptake of emerging technologies such as Fourth Industrial Revolution Technologies; and (ix) process re-engineering and automation for end-to-end government business and service delivery. 14.3Programme Objectives 340 In order to address the above constraints, the objectives of this programme are to: 1) Increase the national ICT infrastructure coverage; 2) Enhance usage of ICT in national development and service delivery; 3) Promote ICT research, innovation and commercialisation of indigenous knowledge products; 4) Increase the ICT human resource capital; and 5) Strengthen the policy, legal and regulatory framework.

14.3.1 — Interventions

14.3.1 Interventions 341 In order to achieve the above objectives and intended results, NDPIII will prioritize the following interventions highlighted in Table 14.1. Table 14. 1: Digital Transformation Interventions and Respective Actors Interventions Actors Objective 1: Increase the national ICT infrastructure coverage 1. Extend broadband ICT infrastructure coverage countrywide in partnership MoICT&NG, NITAU, with the private sector and all Government entities and implement last mile UCC, POSTA, UTL, connectivity to key areas (Districts, sub-counties, schools, hospitals, post MEMD, UETCL, offices, tourism sites, police, LGs etc.) UEDCL, UBC/SIGNET, a. Leverage existing infrastructure by government and private sector players Other Utility service providers (MoWE, MoWT), Communication service providers 2. Expand the Digital Terrestrial Television and Radio Broadcasting network MoICT&NG, NITAU, UCC, UBC/SIGNET, Broadcast service providers 3. Establish and enhance national common core infrastructure (data centres, high NITA, MoICT & NG, power computing centres, specialized labs) UCC, Private Sector players Objective 2: Enhance usage of ICT in national development and service delivery 1. Mainstream ICT in all sectors of the economy and digitize service delivery ALL MDAs 155 155 NATIONAL PLANNING AUTHORITY Interventions Actors 2. Strengthen Cyber Security in the country MoICT&NG, NITAU, UCC, Private Sector players, Security agencies 3. Develop and implement the Data Protection and Privacy Programme MoICT&NG, NITAU, UCC, Private Sector 4. Leverage the existing Government infrastructure to deliver public and private POSTA, MoICT & NG, services NITAU, MoPS 5. Digitize, archive and commercialize Local Contents and data ALL MDAs, Private Sector 6. Implement the national addressing system POSTA, MoICT & NG, NITAU, MOLG, LGs, KCCA Objective 3: Promote ICT research, innovation and commercialisation of indigenous knowledge products 1. Develop and implement ICT Research and Innovation ecosystem MoICT & NG, UICT, MSTI, UCC, NITAU, ACADEMIA, PRIVATE SECTOR 2. Develop Innovation and incubation Centres MoICT & NG, UICT, MSTI, PRIVATE SECTOR, CIVIL SOCIETY, ACADEMIA 3. Support local innovation and promote export of knowledge products MoICT&NG, NITAU, UCC, PRIVATE SECTOR, ACADEMIA 4. Promote local manufacturing and assembly of ICT products MoICT & NG, UCC, NITA, MSTI, PRIVATE SECTOR 5. Undertake innovative management of e-waste MoICT&NG, NITAU, UCC, PRIVATE SECTOR, ACADEMIA, NEMA, MWE, LGs Objective 4: Increase the ICT human resource capital 1. Develop a well-grounded ICT professional workforce MoICT & NG, UICT, MoES, NCDC, NCHE, ACADEMIA 2. Develop an ICT professional’s quality assurance framework MoICT & NG, UICT, NITA, MoES, NCDC, NCHE 3. Provide digital literacy training MoICT & NG, UICT, UCC, NITA, NCHE ACADEMIA 4. Develop ICT centres of excellence and vocational institutions MoICT & NG, UICT, UCC, MoES, NCHE 5. Review and implement ICT training curriculum at all levels of Education MoICT & NG, UICT, system in line with the emerging technologies UCC, NITA, MoES, NCDC, NCHE, ACADEMIA 6. Implement targeted capacity building for teachers to incorporate ICT in MoICT & NG, UICT, Pedagogy MoES, NITAU, NCHE Objective 5: Strengthen the policy, legal and regulatory framework 1. Regulate, coordinate and harmonize ICT infrastructure planning, sharing and MoICT & NG, UCC, deployment within the public and private sector NITAU 2. Review and develop appropriate policies, strategies, standards and regulations MoICT & NG, UCC, that respond to industry needs NITAU 156 156 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

14.3.2 — Implementation Reforms

14.3.2 Implementation Reforms 342 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Government should take lead in the coordination of ICT infrastructure development and deployment so as to cure the silo-based approach to planning and development of infrastructure. 2) Government should digitalise and roll out e-services to all sectors, MDAs and Local Governments to be able to harness the potential of ICT. All sectors, MDAs and LGs will adopt new ways of delivering services, re-engineer their business processes ensuring that they are simplified, streamlined and optimized and develop e-solutions such as e- health, e-education, e-extension services among others 3) There is need to rationalize agencies under the ICT sector to remove duplications and overlaps of mandates.

14.3.3 — Programme Human Resource Requirements

14.3.3 Programme Human Resource Requirements 343 Successful implementation of this programme will require addressing the following human resource gaps: DevOps specialists, Graphic Designing specialists, Software Engineering specialists, Software Developers, Software Quality Testing (SQT) Automation specialists, Web Programming specialists, System auditors, Information Technology managers, Enterprise architecture specialists, among others. Table 14.2 details the status of the availability of skills in short supply whose training is not available in Uganda and skills in short supply with training available in Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 14.2: Qualifications and Skills Needs for ICT and Digital Technology Programme Qualifications and Skills Status Estimated 5-Year Gap Applications developers 920 Business intelligence (BI) analysts 416 Computer and Information Systems Managers 489 Computer Science Programmers 556 Computer Systems Analysts 456 Computer vision engineers 575 Data Communication and Software Engineering specialists 380 DevOps specialists 1,241 Graphic Designing specialists 1,093 Information Science specialists 402 Machine learning and Artificial Intelligence (AI) specialists 397 Machine learning Engineers 460 Multimedia Artists and Animation specialists 277 Software Engineering specialists 1,936 Software Developers 2,928 Software Quality Testing (SQT) Automation specialists 3,113 Web Programming specialists 2,056 System auditors 2,342 157 157 NATIONAL PLANNING AUTHORITY Qualifications and Skills Status Estimated 5-Year Gap Information Technology managers 1,948 Enterprise architecture specialists 1,739 Key for the table Skills in Short supply and Training Skills in Short supply and Training is is not available in country in-country 158 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 15: SUSTAINABLE URBANIZATION AND HOUSING 15.1Introduction 344 Urbanization offers considerable opportunities for accelerating socio-economic transformation. Depending on the form that urbanization takes, the concentration of economic actors in space enables substantial productive advantages that can contribute to growth and development. Planned and efficient urbanization will enhance rather than restrict inclusive structural transformation. Because the growing middle-class consumption is largely urban based, urbanization also influences industrial development. As income grows, discretionary spending increases and consumption patterns change, generating demand for manufactured goods and urban construction and thus opportunities for industry. 345 In regard to this plan, urbanisation and housing will contribute to the improvement of incomes and quality of the population by contributing to increasing productivity, inclusiveness and well-being of the population. This will be achieved through the provision of decent and affordable housing, employment opportunities as well as transformation of the informal sector. 346 The global Agenda 2030 for Sustainable Development (SDG11), as well as the African Agenda 2063 advocate for a well-planned and managed urbanization as a force for sustainable development. The Uganda Vision 2040 also seeks to invest in better urban systems to enhance productivity, liveability, and sustainability. 347 However, Uganda’s current urban growth and development is unsustainable due to: jobless urban growth; inadequacies in physical planning and plan implementation leading to a sprawl of unplanned settlements including in risk prone areas; a deficiency in quantity and/or quality of social services, public infrastructure and housing; a skewed national urban system; and vulnerability due to climate change. 348 The goal of this programme is therefore, to attain inclusive, productive and liveable urban areas for socio-economic development. 349 The key results to be achieved over the next five years are: (i) Decrease the urban unemployment rate from 14.4 percent to 9.4 percent; (ii) Reduce the acute housing deficit of 2.2 million by 20 percent; (iii) Decrease the percentage of urban dwellers living in slums and informal settlements from 60 percent to 40 percent; (iv) Decrease the average travel time per km in GKMA from 4.1 min/km to 3.5 min/km; (v) Increase the proportion of tarmacked roads in the total urban road network from 1,229.7 km (6.1 percent) to 2,459.4 km (12.2 percent); (vi) Improve the efficiency of solid waste collection from 30 percent to 50 percent. 159 NATIONAL PLANNING AUTHORITY 15.2Situation Analysis 350 Uganda is urbanizing rapidly, albeit from a low base (at 18 percent). At 5.2 percent urban growth rate per annum, 26.5 percent of Uganda’s population will be urban by 2030. During the 10-year (2020-2030) plan period alone, Uganda’s urban population is projected to grow by 69 percent, adding 8.1 million people to the country’s cities. Uganda’s rapid urbanisation can foster the transition to a middle-income country, if it is planned well. An estimated 70 percent of GDP is generated in Uganda’s urban areas, where only 24.4 percent of the population lives. If Uganda’s growing cities and the national urban system are to play a central role in economic transformation, the binding constraints as well as opportunities highlighted below should be addressed to increase productivity and create jobs in the urban areas. 351 Uganda’s high urbanization rate has not been matched by the capacity of local authorities to plan and manage urban growth. Many urban areas in Uganda have expanded beyond their original spatial plans with many urban areas surrounded by vast sprawling unplanned settlements and have increasingly encroached on the wetlands and drainage corridors. 60 percent of the urban population live in informal settlements (slums), which are characterised by social conflicts and crime. The urban sprawl negatively impacts productivity and efficiency of firms, costs incurred by households, service delivery, and the degradation of greenspaces as well as ecosystem services. The encroachment on and destruction of wetlands and natural drainage features which are meant to consolidate runoff water and then release it gradually is the main reason for persistent flooding in urban areas. 352 The inadequacies in physical planning is worsened by the complex land tenure system prescribed by the Constitution, which vested land ownership to residents, with urban authorities poorly managing statutory leases. The failure to enforce the Physical Planning Act (2010), the National Physical Planning Standards and Guidelines (2011) and the National Land Policy (2013), has resulted in land fragmentation through unregulated land subdivision and transactions. Land transactions, land and property transfer and registry are key challenges for doing business by the private sector. Only 21 percent of the country’s land is titled impacting investments, land transactions and supply of land for development. 353 Uganda’s urban areas, especially the Greater Kampala Metropolitan Area (GKMA), are characterised by overcrowding, poor infrastructure and inadequate social services such as water, sewage, solid waste collection. The absence of an efficient public transport system and adequate road connectivity results in traffic congestion, which curtails mobility and inhibits economic agglomeration. In the GKMA alone, 2.2 million persons use the inadequate and dilapidated infrastructure every day, which leads to the severe traffic congestion. Furthermore, in relative terms, Uganda’s urban population has a lower level of access to electricity (57 percent), and basic sanitation (28 percent) than averages for low and middle-income countries. Uganda also faces an acute deficit of affordable and quality housing totalling an estimated 2.2 million housing units, out of which 210,000 units are needed in the urban areas. The backlog is expected to increase to 160 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 8 million housing units by 2030 if not addressed. The annual needs for new decent housing for the entire country is estimated at 200,000 units per annum yet only 60,000 units are constructed annually. The provision of houses has largely been left to an ill-equipped private sector. 354 The current urbanization is characterized by minimal industrialization. This has resulted in rapid urbanization without the required jobs in skill-intensive and higher- productivity sectors and, ultimately, extensive informality, poverty and inequality. Most non-farm employment is in the informal sector (91 percent), with young people occupying 94.7 percent of those jobs. In Kampala, informal firms account for 57 percent of employment. Apart from the slow pace of industrialisation, most youths lack certified skills that would turn them into job creators and not job seekers. However, the increase in the working age population provides Uganda with an immense window of opportunity to translate its high population growth rates into a demographic dividend. The country’s ability to harness this demographic dividend and turn it into inclusive growth and productive jobs is premised on its capacity to harness rapid urbanisation. 355 Uganda’s national spatial system is dominated by the Greater Kampala Metropolitan Area (GKMA), which comprises 10 percent of the national population, 40 percent of the urban population, 46 percent of formal sector workers and 70 percent of manufacturing firms with five or more employees. The GKMA is by far the largest of Uganda’s urban areas and was approaching 3.5 million in 2017, with no other urban area standing at more than 200,000 at the time of the 2014 census. In order to maintain and promote the vital economic contribution and competitiveness of urban areas, it is critical to adopt an integrated approach towards the envisioned sustainable urbanization and housing programme. 356 Over the next five years, focus on harnessing the urbanization potential will be on: (i) fast tracking sustainable urbanization; (ii) building capacities of urban centres to manage the rapid urbanization; (iii) building the requisite infrastructure and housing for urbanization; (iv) fast-tracking industrialization for urban centres; (v) planning and diversifying the country’s urban centres; and (vi) greening Uganda’s urbanization process.

15.3 — Programme Objectives

15.3 Programme Objectives 357 In order to address the above constraints, the objectives of this programme are to: 1) Increase economic opportunities in cities and urban areas; 2) Promote urban housing market and provide decent housing for all; 3) Promote green and inclusive cities and urban areas; 4) Enable balanced, efficient and productive national urban systems; 5) Strengthen urban policies, planning and finance.

15.3.1 — Interventions

15.3.1 Interventions 358 In order to achieve the above objectives and intended results, NDPIII will prioritize the interventions highlighted in Table 15.1. 161 NATIONAL PLANNING AUTHORITY Table 15.1: Sustainable Urbanization and Housing Interventions and Respective Actors Interventions Actors Objective 1: Enhance economic opportunities in cities and urban areas 1. Support establishment of labour-intensive manufacturing, services, and projects MLHUD, MoLG, NPA, MDA’s, for employment creation including development of bankable business plans Private sector, DPs 2. Upgrade accredited institutions to offer certified skilling, entrepreneurship and MGLSD, MoFPED, MOE, incubation development in sustainable urbanisation and housing related fields MLHUD, MOLG 3. Reform and improve business processes in cities and urban areas to facilitate MOTIC, URA, MoFPED, private sector development MoLHUD MoLG, Private Sector 4. Develop and implement an integrated rapid mass transport system (Light MoWT, KCCA, MLHUD, Railway Transport and Mass Bus Transport) to reduce traffic congestion and MDA’s, pr ivate sector, DPs, improve connectivity in urban areas CSOs, Local Communities, LGs 5. Improve urban safe water and waste management services and associated MoWE, KCCA, MLHUD, MoLG, infrastructure for value addition and revenue generation MoWT, NWSC, MDA’s, private sector, DPs, CSOs, Local Communities 6. Improve the provision of quality social services to address the peculiar issues of MoWE, KCCA, MLHUD, MoLG, urban settlements MoWT, MoH, MoES, NEMA, private sector, DPs, CSOs, Local Communities Objective 2: Promote urban housing market and provide decent housing for all 1. Develop and implement an investment plan for adequate and affordable housing MLHUD, MoLG, MoFPED, NPA, MDAs, MTIC 2. Develop, promote and enforce building codes/standards MLHUD, MoLG, MoFPED, NPA, MDAs, MTIC, MoWT 3. Develop an inclusive housing finance mechanism including capitalization of MOFPED, MKCC&MA, Housing Finance Bank to provide affordable mortgages and revisiting the MLHUD, NPA, DPs, Private mandate of NHCC to support housing development for all. Sector, Civil Society, Local Communities 4. Incentivize real estate companies to undertake affordable housing projects to UIA, MLHUD, Private sector address the housing deficit 5. Address infrastructure in slums and undertake slum upgrading including UIA, MTIC, Uganda Free zones operationalisation of the Condominium Law in slums and cities. Authority, MoWT, MoLG, MLHUD, MAAIF, LGs 6. Design and build inclusive housing units for government workers (civil servants, UNHCC, MLHUD, MOLG, police and army) MKCC&MA, Housing Finance Bank 7. Promote the production and use of sustainable housing materials and technologies MTIC, MLHUD, Private Sector Objective 3: Promote green and inclusive cities and urban areas 1. Conserve and restore urban natural resource assets and increase urban carbon MLHUD, MWE, NEMA Private sinks Sector 2. Undertake waste (including faecal matter) to wealth initiatives which promote a MLGSD, MOWE, MOEMD, circular economy MLHUD 3. Develop green buildings, risk sensitive building codes and systems to promote MLHUD, MOFPED, OPM, energy efficient housing MOEMD, MKCC&MA 4. Promote mass transport and non-motorized transit in city MOW, MLHUD, MOWE 5. Increase urban resilience by mitigating against risks of accidents, fires, flood MLHUD, MOWT, MOWE, OPM earthquake, landslides and lightning specifically focusing on: a. Strengthen effective early warning systems; b. Improve emergency responses. 6. Develop and protect green belts MLHUD, NEMA, MOWE 7. Establish and develop public open spaces MLHUD, MOWE Objective 4: Enable balanced and productive national urban system 1. Develop and implement integrated physical and economic development plans in MLHUD, MOLG, OTHER MDAs the new cities and other urban areas and Private Sector 2. Implement the Greater Kampala Metropolitan Area Economic Development MKCC&MA, MLHUD, MOLG, Strategy other MDAs and Private Sector Objective 5: Strengthen urban policies, governance, planning and finance 162 162 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors 1. Review, develop and enforce urban development policies, laws, regulations, MLHUD, MWE, PSFU, CSOs, standards and guidelines Local Communities, MoLG, LGs 2. Implement participatory and all-inclusive planning and implementation MLHUD, KCCA, MWE, MoLG, mechanism to enforce the implementation of land use regulatory and compliance PSFU, CSOs, Local Communities, frameworks LGs 3. Scale up the physical planning and urban management information system MLHUD, NPA, MoLG, MTIC, DPs, PSFU, CSOs, Local Communities, LGs

15.3.2 — Implementation Reforms

15.3.2 Implementation Reforms 359 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: (i) Restructure Ministry of Kampala Capital City and Metropolitan Affairs and corresponding Ministries to effectively handle metropolitan affairs in the country.

15.3.3 — Programme Human Resource Requirements

15.3.3 Programme Human Resource Requirements 360 Successful implementation of this programme will require addressing the following human resource gaps: Electrical Engineering Technicians; Environmental and Occupational Health and Hygiene Professionals; Geographic Information System specialists; Electronics Mechanics and Servicers; Construction Supervisors; Environmental Protection Professionals; Environmental and Occupational Health Inspectors and Associates, among others. Table 15.2 shows the total number of required expertise over the next five years by field of study for this program that are in short supply and training is in-country. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 15. 2: Qualifications and Skills Needs for: Sustainable Housing and Urban Development Programme QUALIFICATIONS AND SKILLS Status Estimated 5-Year Gap Electrical Engineering Technicians 920 Environmental and Occupational Health and Hygiene Professionals 837 Geographic Information System specialists 837 Electronics Mechanics and Servicers 669 Environmental Engineers 669 Environmental specialists 669 Social Work Associate Professionals 669 Urban Researchers 669 Cartographers and Surveyors 586 Environmental Policy Analysts 586 Civil Engineering Technicians 502 Landscape Architects 418 Urban policy analysts 418 Social Impact Assessment specialists 402 Building Architects 368 163 163 NATIONAL PLANNING AUTHORITY QUALIFICATIONS AND SKILLS Status Estimated 5-Year Gap Interior Designers and Decorators 335 Town and Traffic Planners 335 Incinerator and Water Treatment Plant Operators 301 GIS and R specialists 234 Map Design & Spatial Planning Specialist - GIS Developer 201 Integrated Development Environment specialists 184 Construction Supervisors 1,171 Environmental Protection Professionals 1,171 Occupational Health Inspectors and Associates 1,004 Stonemasons, Stone Cutters, Splitters and Carvers 502 SketchUp Modeler 669 Key for the table Skills in Short supply and Training Skills in Short supply and Training is is not available in country in-country 164 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 16: HUMAN CAPITAL DEVELOPMENT

16.1 — Introduction

16.1 Introduction 361 A country that invests in its human capital secures its future. Well-educated, skilled and healthy human resources are essential to facilitate development. In particular, adequate investment in science, technology and innovation (STEI) is critical for a country to industrialise and achieve sustainable development. The availability of appropriate and adequate human capital facilitates increase in production, productivity and technological growth. Investing in population health; nutrition, early childhood development, sanitation and hygiene basic education and tackling vulnerabilities helps set the foundation for the required human capital. 362 Ultimately, human capital development contributes to the NDPIII goal of increased household incomes and quality of life through increasing productivity, inclusiveness and well-being of the population. 363 The aspiration of Agenda 2030, 2063 and EAC Vision 2050 is to have a holistic approach to achieving sustainable development for all. SDG 1 calls for poverty reduction and enhancing resilience through social protection, and equitable access to basic services and resource. SDG 2 calls for ending hunger, achieving food security and improved nutrition. SDG 3 and Goal 3 of Agenda 2063 call for ensuring healthy lives and promoting the well-being for all at all ages. SDG4 emphasizes equitable quality education, promotion of lifelong learning opportunities and skills revolution underpinned by science, technology and innovation. SDG 5 provides for gender equality and empowerment of all women and girls, while SDG 6 and Africa Agenda 2063 (goal 1) call for provision of clean water and sanitation for all. Furthermore, SDG8 provides for full and productive employment and decent work for all, while SDG 10 calls for reduced inequalities. The Uganda Vision 2040 identifies human capital development as one of the fundamentals that need to be strengthened to accelerate the country’s transformation and harnessing the demographic dividend. 364 However, Uganda’s human capital is characterised by low labour productivity (38 percent), low human development (HDI at 0.516) and fewer STEI graduates (2 out of 5 are STEI graduates). This is mainly attributed to: (i) weak foundation for human capital; (ii) lack of appropriate knowledge skills and attitudes; (iii) weak talent and sports nurturing; (iv) high youth unemployment (v) poor population health and safety; (vi) food and nutrition insecurity (vii) inadequate population management including child marriages, teenage and unwanted pregnancies; limited information on Sexual and Reproductive Health (SRH); (viii) insufficient coverage of social protection; (ix) gender and other inequalities and (x) lack of institutionalized and integrated human resource planning and development. 365 Therefore, the goal of the Human Capital Development Programme is improving productivity of labour for increased competitiveness and better quality of life for all. 366 The key results to be achieved over the next five years are: 165 NATIONAL PLANNING AUTHORITY (i) Increased proportion of labour force transitioning into decent employment from 34.5 percent to 55 percent; (ii) Increased ratio of Science and Technology graduates to Arts graduates from 2:5 to 3:5; (iii) Increased percent of employers satisfied with the training provided by the TVET institutions from 40 percent to 65 percent; (iv) Increased average years of schooling from 6.1 to 11 years; (v) Increased learning adjusted years of schooling from 4.5 to 7 years; (vi) Reduced prevalence of under 5 stunting from 28.9percent to 19percent; (vii) Reduce neonatal mortality rate from 27/1,000 live births to 19/1,000; (viii) Reduced under 5 mortality from 64/1000 live births to 30/1000; (ix) Reduced Maternal Mortality Rate from 336/100,000 to 211/100,000; (x) Reduced unmet need of family planning from 28 to 10 percent and increase CPR from 35 to 50 percent; (xi) Reduced mortality due to NCDs from 40 to 30 percent; (xii) Reduced Mortality due to high risk Communicable Diseases (Malaria, TB & HIV/AIDS) (percent) from 60 percent in 2017 to 30 percent; (xiii) Reduce teenage pregnancy rate from 25 percent in 2016 to 15 percent; (xiv) Reduce gender gap index from 0.523 in 2017 to 0.8; (xv) Increased access to safe water supply from 70 to 85 percent (rural) and from 74 percent to 100 percent (urban); (xvi) Increased access to basic sanitation from (improved toilet) 19 to 40 percent and hand washing from 34 to 50 percent; (xvii) Increased proportion of the population accessing universal health care from 44 to 65 percent; (xviii) Increased percentage of vulnerable people with access to social insurance from 7 to 15 percent; (xix) Improvement in the world sports ranking in niche sports: football (77th to 70th); netball (6th to 4th); athletics (9th to 4th).

16.2 — Situation Analysis

16.2 Situation Analysis 367 Uganda has the second youngest population in the world, 50.3 percent of the 40 million people are below 15 years. The country also has a high population growth rate of 3 percent and a fertility rate of 5.4 percent. At this growth rate, the population is projected to be 48.3 million by 2025. This population structure, offers the country a high 166 166 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 opportunity for abundant labour force but also creates a challenge of a high dependency burden. This is worsened by the refugee population, the highest in Africa and the third in the world. 368 With adequate investment in people, Uganda will harness the demographic dividend. However, the current demographic indicators present a challenge. With a human development index (HDI) of 0.516, the country is classified in the low human development category— ranking it at 162 out of 189 countries. Also, a Human Capital Index (HCI) of 38 percent implies that, with the current state of education and health, a child born in Uganda is expected to achieve only 38 percent of their productive potential at age 18. 369 This Plan follows life cycle approach to human capital development; pre-conception, infancy, childhood, adolescence, adulthood, and old age. The detailed analysis of each phase shows a mixed performance as highlighted below: 370 At pre-conception, conception and Infancy, significant progress has been made in maternal and child health. This improvement is due to increased provision of free antenatal services in most health facilities with ANC visits, increasing from 44 percent in 2011 to 60 percent in 2016 and the proportion of hospital deliveries increasing from 57 to 73 percent over the same period. In particular, maternal mortality ratio declined from 438 in 2011 to 336 in 2016 and infant mortality (per 1,000) improved from 54 to 43 over the same period. In addition, there was increase in access to prevention of mother to child HIV transmission services from 68 percent in 2015 to 90 percent in 2016. However, neonatal mortality rate has stagnated at 27 per 1,000 for the last 20 years (below the NDPII target of 10 per 1,000); completion rate of immunization before 1 year remains low at 78 percent (NDPII target 95 percent); low sanitation and hygiene coverage (19 percent improved-toilet coverage and 34 percent hand washing); limited access to health insurance at 2 percent; limited access to prenatal, antenatal and post-natal care and education; limited child and maternal nutrition education; low parenting skills and non- functionality of some health facilities and poor maternal nutrition (with anaemia at 32 percent, undernourishment at 9 percent and vitamin A deficiencies). 28 percent of Ugandan women have an unmet need for family planning, and about 7,500 babies are infected with HIV annually. The slow improvement in some of the indicators is due to; negative health behaviour, lack of knowledge, limited access to health services, and the lack of a multi-sectoral response to health. Nonetheless, these challenges are less prevalent in households where mothers have attained at least some secondary level education. 371 At childhood phase (1-12 years), progress has been registered in a number of areas. In education, enrolment in primary education has tripled from 2.8 million in 1997 following the introduction of Universal Primary Education (UPE) to 8.8 million in 2018; increased physical infrastructure that has led to improvement in the Pupil Classroom Ratio from 87:1 in 2003 to 55:1 in 2018; increase in qualified primary school teachers from 185,548 in 2013 to 207,238 in 2018; the Gross Enrolment Ratio (GER) and Net Enrolment Ratio (NER) in Primary improved from 117 percent, and 93 percent in 2015/16 to 111 percent and 94 percent in 2017/2018, respectively. In childhood health, significant 167 NATIONAL PLANNING AUTHORITY progress has been registered in the areas of reduction in under-five mortality from 90/1000 in 2011 to 64/1000 in 2016, and safe water coverage is high at 74.9 percent in rural at 92.3 percent in urban. However, there are still challenges that include high diarrheal diseases prevalence accounting for 69 percent of childhood illnesses; high malaria prevalence at 17percent of children 0-59 months; low improved latrine coverage (19 percent); limited access to hand-washing facilities (34 percent); poor menstrual health; poor housing conditions leading to respiratory and other diseases; and hunger where 66 percent of children go without a meal at school. With regard to social protection, significant progress has been made in terms of laws and policies for child protection against all forms of abuse. However, challenges still exist at this phase which include; child abuse, neglect and deprivation. 372 At childhood phase (1-12 years), challenges to education results include: low access to Early Childhood Care and Education (ECCE) at 15.6 percent in 2015/16; poor quality of ECCE services; poor quality and efficiency of primary education as evidenced by low literacy rates (49.9 percent at P.3, and 53.1 percent at P.6), low numeracy rates (55.2 percent at P.3, and 50.9 percent at P.6) and low survival rates in primary at 38 percent in 2018 due to high drop-out. However, there is no major difference in literacy and numeracy between boys and girls in primary education. These challenges are exacerbated by among others: weak school management; limited teacher capacity; absence of school feeding; limited parental/community participation; low financing and poor assessment methods. 373 Child mortality and under-nutrition (high child stunting rate of 28.9 percent) are high. Access to safe drinking water (51 percent), latrine coverage (19 percent), and access to hand-washing facilities (34 percent) are low. Malaria prevalence is high at 19 percent and poor housing conditions prevail. Child abuse, neglect and deprivation continue. According to the 2016 UDHS, there have been overall improvements in social development indicators related to various forms of violence against women and girls (VAWG). Despite this, challenges remain with 56 percent of women having experienced spousal violence and 22 percent sexual violence. The figures for violence against children are also high, with 59 percent of females and 68 percent of males reporting experiencing physical violence during childhood. Child poverty is at (55 percent) and child labour at (27 percent); continued exposure to harmful cultural practices including female genital mutilation (FGM) is prevalent. In addition, the disability prevalence rate of population aged 5 years and above is high at 12.5 percent for any form of disabilities. 374 Between the age of 13 -19 years, progress has been registered in various areas. In education and skilling, the number of secondary schools increased by 26 percent from 2,373 in 2007 to 3000 in 2017, with more growth registered in the private sector at 34 percent over the same period. There was an increase in: secondary enrolment from 1.23 million in 2009/10 to 1.37 million in 2016/17; the public TVET institutions from 126 in 2012 to 152 in 2018; enrolment in formal TVET from 34,380 in 2012 to 95,841 in 2018; universities and other degree awarding institutions from 34 in 2011 to 60 in 2017; and university enrolment from 139,683 to 162,299 over the same period. However, challenges still exist including: low GER (25 percent) and NER (22 percent); poor learning 168 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 outcomes in science subjects due to few science teachers, science laboratories and instruction materials; low completion rates at secondary (senior four) at 34.8 percent in 2017 (36.2 percent boys and 33.5 percent girls), teenage pregnancies; early marriages; lack of fees; gender disparities in enrolment in favour of boys at secondary (gender parity index of 0.88), at TVET (GPI, 0.61) and university (GPI, 0.81); low enrolment at TVET compared to university mainly due to the negative image associated with TVET. 375 In addition, TVET is characterised by: consorted focus on training institutions and limited focus on industry as a major vehicle for the delivery of BTVET; limited supply of quality tutors and instructors for tutoring/instruction effectiveness; lack of an effective internship/apprenticeship/on-job training management, system; and delayed youth transition into self or formal employment. There is also a rigid supply driven curriculum and limited resource allocation towards the development of the demand driven industry- led occupational standards (ATPs), unexploited linkage between TVET, universities and industry; limited pace of rolling out international accreditation for TVET institution; perceived overlaps in the mandates of the quality assurance systems; mismatch between university admissions and national skills gaps; low staffing levels; limited focus on incubation of research and STIs into goods and services; and weak alignment between university curricular and lower education sub-sectors. 376 Sports and physical education (P.E) are critical skills mix sought after to alleviate youth unemployment however, more investment is required to harness this opportunity. There is limited data particularly on sports and PE within schools as it does not explicitly feature in the existing plans and the EMIS. The country has registered significant achievements in regard to sports outside the schooling system. For example, Uganda is ranked 77th in world football, 6th in world netball, 9th in world athletics and 18th in rugby. The subsector is currently faced with policy institutional and financing challenges that require addressing for it to continue making progress. Foremost, the current policy and regulatory framework (i.e., NCS Act 1964 & National Physical Education and Sports Policy 2004) needs updating to among others streamline the management of the sub-sector and improve its governance. Institutionally, district sports councils are not functional and would need to be revitalized to facilitate and monitor sports activities at the grassroots level. Also, there is lack of technical capacity particularly in the governance of sports associations. Further, there is general shortage of standard sporting infrastructure and facilities. With regard to financing, in recent years, public spending on sports and P.E has increased substantially. Between 2010 and 2017, government spending on the subsector rose by a factor of 17 from UGX 1.4 billion (2010) to UGX 23.5 billion (2017). Nonetheless, insufficient resourcing remains a significant barrier particularly to access to sports and P.E by the talented young person’s especially in the countryside. 377 With regard to adolescent health, the country has a draft School Health Policy targeting in-school children including adolescents and is developing an adolescent health policy. Nonetheless, there is low access to adolescent health friendly services and limited disease surveillance resulting in high teenage pregnancies at 25 percent, of which 34percent come 169 NATIONAL PLANNING AUTHORITY from the lowest wealth quintile compared to 15 percent from the highest quintile; HIV prevalence increases rapidly with age in this age group, most especially among adolescent girls where it increases from 0.5 percent at 15 years to 5.1 percent by 20 years; sexual and other forms of violence against children remain prevalent, with one in four girls (25 percent) and one in ten boys (11 percent) reporting sexual violence in the previous one year; low access to sexual and reproductive health information and services; high substance use and abuse; poor access and adherence to HIV treatment; high HIV/AIDS positivity rate at 3.1 percent; exposure to violence; high substance use and abuse; physical inactivity; and mental disorders that hinder their ability to grow and develop to their full potential. In addition, adolescents remain prone to harmful cultural practices including female genital mutilation (FGM), caregiving, sexual exploitation and also face particularly age and gender related exclusions from socio-economic opportunities, contravening the leave no one behind agenda. 378 At the adulthood phase (19-64 years), progress has been registered in various areas. There has been an increase in: public TVET institutions from 126 in 2012 to 152 in 2018; enrolment in formal TVET from 34,380 in 2012 to 95,841 in 2018; universities and other degree awarding institutions from 34 in 2011 to 60 in 2017; and university enrolment from 139,683 to 162,299 over the same period; existence of a qualifications framework; increase in number of university students accessing loans to 8,190 in 2014; and increase in wage employment from 24 percent in 2009 to 27 percent in 2016/17. More access to social security was registered for age categories 31-50 years and 51-60 years at 16.9 percent and 18.2 percent, respectively; 148,286 youth established 11,839 projects as at 2017 through the Youths Livelihood Programme (YLP); and the Uganda Women Empowerment Programme (UWEP) supported 43,977 women beneficiaries through 3,448 projects in FY2017/18. Further, 75 percent of the population lives within 5 kms from the health facilities; improvement in MMR from 438 to 336 in 2016. Nonetheless, the burden of communicable diseases remains high at 60 percent. The highest contributors to this burden include; HIV/AIDS (about 88 percent of all adults living with HIV are receiving anti-retroviral therapy), Malaria (293 per 1000) and TB (234 per 100,000). 379 At the adulthood phase (19-64 years), a rapid increase in NCDs is a concern, now contributing up to 40 percent of the disease burden and high death rate. NCD conditions that require significant focus include injuries (13 percent mortality rate), cardiovascular illness (9 percent mortality rate), cancers (5 percent), chronic respiratory conditions (2 percent), diabetes (1 percent), and others (10 percent mortality rate). Twenty four percent (24 percent) of women and 9 percent of men aged between 15-49 are overweight or obese. Whereas the staffing norms have been improving, gaps still exist among the critical staff e.g. doctors, anaesthetists, pharmacist, public health nurses. Health worker population ratio was noted to have improved from 1.85/1,000 (2017) to 1.87/1,000 persons (June 2018) though still below the WHO recommended threshold of 2.5 per 1,000 persons (AHSPR, 2018/19). Similarly, a wide gap (on average 68 percent) is noticed in the specialized and super-specialised areas like mental health (100 percent), dermatology (100 percent), cardiology (69 percent), oncology (77 percent), and neurology (71 percent). 170 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 380 At the adulthood phase (19-64 years), challenges to human development include: low labour productivity; high youth unemployment at an average of 38 percent (if adjusted for non-paid labour); low transition rates from training to employment at 35 percent; fragmented employment creation initiatives; limited application and uptake of modern and appropriate technology to maximize productivity; lack of institutionalized and integrated human resource planning and development at national and sectoral level; lack of a functional labour market information system; inadequate framework to regulate and manage labour migration; increasing poverty levels from 19.7 percent in 2012/13 to 21.4 percent in 2016/17; and increasing income inequality with the Gini coefficient increasing from 0.43 in 1999 to 0.44 in 2009; high burden of communicable diseases (60 percent) mainly attributed to HIV/AIDS, malaria and TB; rising mortality due to Non- Communicable Diseases (NCDs) including; injuries (13 percent), cardiovascular illness (9 percent), cancers (5 percent), chronic respiratory conditions (2 percent), diabetes (1 percent), and others (10 percent), explaining 40 percent of the disease burden. In addition, the health worker to population ratio of 0.4 per 1,000 remains below WHO recommended threshold of 2.5 medical staff per 1,000 persons. Further, a wide gap remains (68 percent) in the super-specialized areas like mental health (100 percent), dermatology (100 percent), cardiology (69 percent), oncology (77 percent), and neurology (71 percent). Disability prevalence has remained high with most commonly observed disabilities being loss and limited use of limbs (35.3 percent), spine injuries (22.3 percent), hearing difficulties (15.1 percent), seeing difficulties (6.7 percent) and mental retardation. In addition, 26 percent of Ugandans face food insecurity with Eastern, South Western and West Nile regions being hardest hit. 381 Health financing is inadequate but also off-budget financing by development partners distorts direct public sector efforts. Total per capita health expenditure is only USD 53 per capita compared to USD 84 required to deliver the essential package of services. This per capita health expenditure is composed of Private/households-Out of Pocket Expenditure (42.6 percent), Development Partners (41.7 percent), and Government (15.7 percent). Off-budget financing dominates direct public (donor and Government) spending. For example, in FY2018/19, out of UGX 5,185 billion of direct public financing UGX 2,877 billion (55 percent) was off-budget. This off-budget is largely ear-marked for specific interventions such as HIV/AIDS, TB, Malaria and health infrastructure. This leaves many priority healthcare interventions not effectively attended too. This may also explain the less than satisfactory expenditure performance of the GOU Budget. 382 At the Old Age (64+), progress has been registered particularly in regard to provision of social protection. Old age in Uganda is associated with extreme poverty and vulnerability due to: social exclusion; food insecurity; high NCD burden and limited access to lifelong learning [42 percent of older persons have never been to school, with majority (57percent) being female]. In addition, disability among the aging population has continued to grow, estimated at 2.1 percent of older persons (65 years and above). About 153,704 older persons from 47 districts have benefited from the social assistance grant for empowerment (SAGE) to reduce their vulnerability. However, roll out the SAGE 171 NATIONAL PLANNING AUTHORITY programme nationally has not been possible due to inadequate funds and social care programmes are limited. 383 The big gap in the specialized and or super specialized human resources amidst an increasing burden of NCDs and complicated communicable diseases is threatening Uganda’s health and economic gains. The limited expertise and inadequate technological capacities at country level, makes many patients to seek healthcare outside the country (Medical Tourism). The increasing referrals abroad have not only impoverished patients and lead to high Government expenditure on sponsored patients but have also made it difficult to manage patient conditions locally, leading to many deaths among the elderly. Accordingly, NCD prevention and management particularly through palliative care and physical activity; good nutrition, social assistance and protection; vulnerability assessment; universal health coverage; functional adult literacy and non- formal skills training should be part of the priorities of HCD. 384 Over the next five years, Uganda needs to focus on addressing the challenge of low labour productivity in the country, by: (i) strengthening the foundation for human capital; (ii) improving quality of education at all levels; (iii) developing competences possessed by labour; (iv) improving population health and safety; (v) improving food and nutrition security; (vi) improving population management; (vii) expanding social protection; (viii) increasing application and uptake of modern and appropriate technology; (ix) institutionalizing and integrating human resource planning and development and (x) developing a functional labour market information system; (xi) promoting sports, recreation and physical education; and (xii) support refugee hosting communities to meet increasing service delivery demands. 16.3Programme Objectives 385 The objectives of this programme are to: 1) To improve the foundations for human capital development; 2) To produce appropriate knowledgeable, skilled, and ethical labour force (with strong emphasis on science and technology, TVET and Sports); 3) To streamline STEI/STEM in the education system; 4) To improve population health, safety and management; 5) To reduce vulnerability and gender inequality along the lifecycle; and 6) To promote sports, recreation, and physical education.

16.3.1 — Interventions

16.3.1 Interventions 386 In order to achieve the above objectives and intended results, NDPIII will prioritize the interventions in Table 16.1. 172 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Table 16. 1: Human Capital Interventions and Respective Actors Interventions Actors Objective 1: To improve the foundations for human capital development 1. Institutionalize training of ECD caregivers at public PTCs and enforce the MoES, MoGLSD, regulatory and quality assurance system of ECD standards MoFPED, MoLG, Private Sector, DPs 2. Promote optimal Maternal, Infant, Young Child and Adolescent Nutrition MoH, MoES, MoGLSD, practices MTIC, MoFPED, MoLG, a. Strengthen the enabling environment for scaling up nutrition at all levels MAAIF, Private Sector (eg b. Promote consumption of fortified foods especially in schools with focus Maama Care Foundation), on beans, rice, sweat potatoes, cooking oil, maize. DPs c. Promote dietary diversification d. Develop the national food fortification policy and law 3. Increase access to immunization against childhood diseases MOH, MoGLSD 4. Improve adolescent and youth health MOH, MoGLSD, Private a. Provide youth-friendly health services Sector, CSOs b. Establish community adolescent and youth-friendly spaces at sub county level c. Include youth among the Village Health Teams 5. Strengthen the family unit to reduce domestic violence, child deprivation, abuse MoGLSD, MoJCA, MoIA, and child labour MoFPED, MoLG, Private Sector, CSOs 6. Equip and support all lagging primary, secondary schools and higher education MoES, MoH, MoGLSD, institutions to meet Basic Requirements and Minimum Standards (BRMS) MoFPED, MoLG, NCHE, MoWE, Private Sector, DPs 7. Roll out Early Grade Reading (EGR) and Early Grade Maths (EGM) in all primary MoES, MoLG, LGs, schools to enhance proficiency in literacy and numeracy Private Sector, CSOs 8. Implement an integrated ICT enabled teaching, school level inspection and MoES, MoICT&NG, supervision MoLG, MoFPED 9. Develop and implement a distance learning strategy MOES, MoICT&NG, a. Invest in basic remote ICT-enabled learning infrastructure Telecom companies, b. Liaise with Higher Education Institutions, and Technology Companies HEI’s, ICT Entrepreneurs, and Entrepreneurs to design and roll-out remote learning platforms with LGs greater penetration in marginalized communities c. Procure and distribute solar powered radio sets for all households in the country to support distance learning and community mobilisation d. Procure and distribute two solar powered TV sets to each village in the country to support distance learning and community mobilisation. This should be first piloted before full roll-out e. Establish a national Radio and TV station dedicated to education and distance learning 10. Upgrade EMIS to include tracking enrolment, drop-out, retention, and uniquelyMoES, NITA-U, LGs, identify learners, teachers, and institutions. UBOS 11. Integrate Education for Sustainable Development into the school curriculum MoES, NCDC, MoLG 12. Implement a National Strategy against Child Marriage and Teenage Pregnancy MOH, MoES, MGLSD, MoLG, LGs, NPC, NPA Objective 2: To produce appropriate knowledgeable, skilled and ethical labour force 1. Establish a functional labour market MoGLSD, MoES, UMA, a. Establish a functional labour market information system PSFU, MTIC, MoLG, b. Develop and implement an apprenticeship and job placement policy and NCHE, UBOS programme c. Extend internship programme to out-of-school youths d. Conduct regular tracer studies 2. Roll out the modularised TVET curricula for all formal TVET programmes as to MoES, UMA, PSFU, attain a flexible demand driven TVET system in Uganda. MTIC, MoGLSD, DIT, Industry 173 NATIONAL PLANNING AUTHORITY Interventions Actors 3. Support the TVET institutions that have the minimum requisite standards to MoES, Training acquire International accreditation Status Institutions, Accreditation bodies, Industry 4. Refocus and support Vocational Training Institutions (schools, institutes and MoES, MoTIC, MoGLSD, colleges) to deliver a dual training system for TVET (i.e. 80percent training in NCHE, UMA, PSFU, industry and 20 percent learning in the institution) and Universities (ie 40percent industry training in industry and 60 percent training in institution). 5. Provide incentives to increase enrolment in skills-scarce TVET programmes to MoPS, MOFPED, MOES, reverse the currently inverted skills triangle NCHE 6. Implement the National Strategy for Girls Education, by among others MOES, LGs, MGLSD strengthening affirmative action for enrolment of girls and PWDs in BTVET 7. Accelerate the acquisition of urgently needed skills in key growth areas MoPS, MoES, MoFPED, a. Develop comprehensive national and sectoral Human Resource NCHE, MoGLSD, MTIC, Development Plans (HRDP) DIT, UMA, PSFU, MoFA, b. Consolidate and centralize capacity building initiatives in the public MoIA, NPA, Tertiary service in line with the HRDP Institutions, HESFEB, c. Operationalise the Skills Development Fund as provided for by the Industry TVET Policy and incentivise the private sector to offer training of their employees in the scare skills areas d. Align the issuance of work permits in line with the HRDP e. Establish and implement a National Central Admission System for higher education and link higher education admissions and financing to the critical skill needs identified in the plan f. Introduce a minimum of one year of compulsory TVET training immediately after A’level before enrolling for further education g. Link allocation of scholarships and loan financing to critical skill needs identified in the plan h. Assess and certify the competencies acquired by trainee beneficiaries during apprenticeship, traineeship, indenture training, and further training and or upgrading in order to foster promote the relevancy of skills training and lifelong learning 8. Provide the required physical infrastructure, instruction materials and human MoES, MoFPED, NCHE, resources for Higher Education Institutions including Special Needs Education Universities 9. Implement an incentive structure for the recruitment, training, and retention of the MoES, MoFPED, Industry best brains into the teaching profession across the entire education system 10. Introduce initiatives for retaining children in formal school for at least 11 years. NPA, MoPS, MoGLSD, Sectors and LGs, MoES, MoFPED, NCHE, Universities 11. Develop digital learning materials and operationalize Digital Repository NCDC, MoES Objective 3: To streamline/emphasise STEI/STEM in the education system 1. Provide early exposure of STEM/STEI to children (eg introduction of innovative MoES, MoSTI, MoFPED, science projects in primary schools) MoLG, NCDC 2. Provide the critical physical and virtual science infrastructure in all secondary MoES, MoFPED, MoSTI schools and training institutions 3. Adopt science project-based assessment in the education curricular MoES, UNEB, NCDC, MoSTI 4. Promote STEM/STEI focused strategic alliances between schools, training MoES, MoSTI, Private institutions, high calibre scientists and industry sector, UMA, HESFEB, a. Prioritise STEI/STEM for programme and institutional accreditation; NCHE, HEIs, Universities, b. Prioritise STEI/STEM admissions and financing at Higher Education Industry Institutions; c. Prioritize investment in STEI/STEM Research and incubation to transform it into goods and services for national growth and societal wellbeing. 5. Link primary and secondary schools to existing science-based innovation hubs MoES, MoSTI, Universities, NCHE 174 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors Objective 4: To improve population health, safety and management 1. Reduce the burden of communicable diseases with focus on high burden diseases MoH, UCI, UHI, MoES, (Malaria, HIV/AIDS, TB, Neglected Tropical Diseases, Hepatitis), epidemic MoGLSD, MoLG, prone diseases and malnutrition across all age groups emphasizing Primary Health MoW&T, MoPS, Private Care Approach Sector, CSOs, HDPs, OPM, UAC, Cultural and Religious Institutions 2. Prevent and control Non-Communicable Diseases with specific focus on cancer, MoH, UCI, UHI, MoES, cardiovascular diseases and trauma. MoGLSD, MoLG, a. Establish centres of excellence in provision of oncology, cardiovascular MoW&T, MoPS, Private and trauma services at both national and regional levels and foster Sector, CSOs, regional integration; HDPs, OPM, UAC, LGs, b. Position Uganda as a medical tourism destination in the region. Community, Cultural and Religious Institutions 3. Improve the functionality of the health system to deliver quality and affordable MoFPED, MoH, MoLG, preventive, promotive, curative and palliative health care services focusing on: MoPS, MoICT&NG, NPC, a. Ensure adequate human resources for health at all levels, with special NMS / JMS, Professional focus on specialized and super specialized human resources; Councils, Professional b. Emergency medical service and referral system; Associations, Medical c. Expanding geographical access; Bureaus, Private Health d. Availability of affordable medicine and health supplies including Providers, HDP promoting local production of medicines (including complementary medicine); e. Undertake continuous training and capacity building for in-service health workers; f. Develop and implement service and service delivery standards targeting lower middle-income standards. 4. Improve maternal, adolescent and child health services at all levels of care MoH, UCI, UHI, MoES, a. Invest in appropriate guidelines, health care package, infrastructure, MoGLSD, MoLG, technologies and human resource capacity for neonatal services at all MoW&T, MoPS, Private levels of health care; Sector, CSOs, b. Develop and implement a comprehensive set of interventions to reduce HDPs, OPM, UAC, LGs, teenage pregnancies, with a special focus on hot spot districts; Community, Cultural and c. Increase investment in child and maternal health services at all levels of Religious Institutions care. 5. Increase access to inclusive safe water, sanitation and hygiene (WASH) with MWE, OPM, MoH, emphasis on increasing coverage of improved toilet facilities and handwashing MoLG, MoW&T, practices MoGLSD, MoES, MEMD, a. Invest in effective management of the entire WASH value chain MoIA, Medical Bureaus, segments such as containment, emptying, transportation, treatment, safe Private Health Providers, reuse or disposal. HDP 6. Increase access to Sexual Reproductive Health (SRH) and Rights with special MoH, MWE, NPC, MoLG, focus on family planning services and harmonised information MoGLSD, Private Sector, CSOs, HDPs, Community, Religious leaders, DPs 7. Increase financial risk protection for health with emphasis on implementing the MOH, Parliament, national health insurance scheme MoFPED 8. Promote health research, innovation and technology uptake MOH, Research & academic Institutions, Health MDAs, MSTI, Private sector 9. Establish and operationalize mechanisms for effective collabouration and OPM, MoH, MoLG, partnership for health at all levels MWE, MoW&T, MoGLSD, MoES, MEMD, MoIA, Medical Bureaus, Private Health Providers, HDP 175 NATIONAL PLANNING AUTHORITY Interventions Actors 10. Improve nutrition and food safety with emphasis on children aged under 5, school OPM, MoH, MoLG, children, adolescents, pregnant and lactating women and vulnerable groups. MAAIF, MWE, MoGLSD, MoES 11. Improving Occupational Safety and Health (OSH) management. MoGLSD, MoH, MoLG, MoW&T, MoGLSD, MoES, MoIA 12. Promote physical health activities and behavioural change across all categories of MoH, MoES, MoGLSD, the population MoLG, LGs 13. Promote delivery of disability friendly health services including physical MoH, MoLG, MoW&T, accessibility and appropriate equipment MoGLSD, MoES 14. Strengthen population planning and development including civil registration, vital MFPED, NPC, NPA, statistics registration and population data bank at National and Sub national levels UBOS, NIRA, URSB, MoIAs, MoDVA, MoLGs 15. Establish and operationalize a multisectoral home-grown school feeding initiative OPM, MoH, MoLG, MWE, MoGLSD, MoES, MAAIF, MoFPED, NDA, MTIC, Private Sector, Host LG, Development Partners 16. Reduce the burden of HIV epidemic and its impact on the socio-development of UAC, MoH, All MDAs, communities, using the multisectoral approach Civil Society, Private Sector, Development Partners Objective 5: Reduce vulnerability and gender inequality along the lifecycle 1. Expand scope and coverage of care, support and social protection services of the MoGLSD, OPM most vulnerable groups and disaster-prone communities 2. Establish early warning systems for disaster preparedness including risk reduction MoGLSD, UNMA, OPM, and management of national and global health risks. MoFPED, NEMA, MoH, LGs 3. Expand livelihood support, labour-intensive public works, and labour market MoGLSD, MoLG programmes to promote green and resilient growth 4. Expand and reform contributory social security schemes to the informal sector to MoGLSD, MoFPED, cover more risks and provide a wider range of benefits URBRA 5. Promote Women’s economic empowerment, leadership and participation in MoGLSD, MoES, MoLG, decision making through investment in entrepreneurship programmes, business LGs, DPs, CSOs centres 6. Scale up Gender Based Violence (GBV) prevention and response interventions at MoGLSD, MoES, all levels MoFPED, LGs, NPC, DPs, CSOs, UPF, Judiciary, MoJCA 7. Support Gender equality and Equity Responsive Budgeting in all Sectors and MoGLSD, EOC, Local Governments MoFPED, LGs, NPC, DPs, CSOs 8. Implement a National Male Involvement Strategies in promotion of gender MoGLSD, MoH, MoES, equality MoLG, LGs 9. Implement the Uganda Gender Policy Action Plan MGLSD, CSOs, Private Sector, LGs, All MDAs 10. Reform and strengthen youth employment policies and programmes towards a MGLSD, CSOs, Private demand driven approach Sector, LGs, Objective 6: To Promote Sports, recreation, and physical education 1. Develop and implement a framework for institutionalizing talent identification, MoES, MoGLSD, MoLG, development, and professionalization. NCS, Sports Clubs 2. Introduce accredited sports and physical education as stand-alone curricular MoES, NCDC, NCS, subject(s) in schools and for sports coaches, administrators, and technical MoLG, Universities officials 3. Establish regional sports-focused schools/sports academies to support early MoES, MoFPED, NCS, talent identification and development, and the training of requisite human Sports Clubs resources for the sports sub-sector. 176 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors 4. Protect existing sports facilities and construct appropriate and standardized MoES, MoFPED, NCS, recreation and sports infrastructure at national, regional, local government and Sports Clubs & schools in line with the country’s niche’ sports (i.e. football, netball, athletics, Associations, FUFA, golf and boxing) Private Sector 5. Leverage public private partnerships for funding of sports and recreation Private sector, MoES, programmes MoFPED, NCS, Sports Clubs 6. Develop and implement professional sports club structures to promote formal MoES, MoFPED, NCS, sports participation Sports Clubs

16.3.2 — Programme Implementation Reforms

16.3.2 Programme Implementation Reforms 387 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: (i) Fast-track the legal and policy reforms required for curriculum synchronisation and implementation as well as assessment/examination across the entire education system. (ii) Introduce a minimum of one year of compulsory TVET training immediately after A’level before enrolling for further education to be delivered through a compulsory National Service programme framework. (iii) Recentralize some of the critical cadres in the health sector such as specialists, anaesthetists, hospital managers, DHOs. (iv) In line with the National Human Resource Development Plan the education and government scholarship policy should address the human resource gaps identified by the plan. Government internal scholarships and the loan scheme should be targeted to addressing training needs in areas where the country has gaps but can be delivered within the country. While foreign scholarships should be provided in areas that address staffing gaps in areas that are not available in the country. (v) In line with the National Human Resource Development Plan the Government issuance of work permits must be based on human resource gaps identified by the plan. In this regard, work permits should be provided in only the areas where the country is facing staffing shortages. (vi) Establish and implement a National Central Admission System for higher education and link higher education admissions and financing to the critical skill needs identified in the Plan (vii) Link allocation of scholarships and loan financing to critical skill needs identified in the plan (viii) Put in place a mechanism that provides opportunities for short working visits to the country’s highly specialised professionals abroad to address the acute staffing needs. (ix) Mainstream off-budget financing into budgets. 177 NATIONAL PLANNING AUTHORITY

16.3.3 — Programme Human Resource Requirements

16.3.3 Programme Human Resource Requirements 388 Successful implementation of this programme will require addressing the following human resource gaps: Cardiologists; Colon and Rectal Surgeons; Dermatologists; Gastroenterologists; Geriatric Medicine Specialists; Haematologists; Infectious Disease Specialists; Vocational Education Teachers; Radiologists; Pathologists; General Surgeons; Podiatrists; Plastic Surgeons; Otolaryngologists; Oncologists; Neurologists among others. Table 16.2 shows the total number of required expertise over the next five years by field of study for this program and the status of skills in Short supply and Training is not available in country and Skills in Short supply and Training is in-country. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 16. 2: Qualifications and Skills Needs for Human Capital Development and Social Protection Programme Estimated 5-Year QUALIFICATIONS AND SKILLS Status Gap Cardiologists 209 Colon and Rectal Surgeons 239 Dermatologists 568 Gastroenterologists 538 Geriatric Medicine Specialists 418 Haematologists 299 Infectious Disease Specialists 1,123 Neurologists 717 Oncologists 418 Otolaryngologists 490 Plastic Surgeons 118 Podiatrists 478 General Surgeons 837 Anaesthesiologists 418 Emergency Medicine Specialists 454 Pathologists 1,135 Radiologists 2,868 Vocational Education Teachers 2,868 Key for the table Skills in Short supply and Training is Skills in Short supply and Training is not available in country in-country 178 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 17: INNOVATION, TECHNOLOGY DEVELOPMENT AND TRANSFER 17.1Introduction 389 Countries that invest in research and innovation as well as those that support regulated technology importation and adoption are able to transform faster. STI together with ICT enable the acceleration of the entire economy and this supports the digital transformation and the move towards digital (smart) health, digital (smart) agriculture, digital (smart) manufacturing, digital (smart) cities, among others. Technology is often imported and adopted through external trade while science and innovation are largely born and bred in-country through tertiary institutions of learning as well as technology incubation centres. 390 Innovation, technology development and transfer increase productivity, inclusiveness and wellbeing of the population. It enables transformation of ideas into usable products, eases work processes and methods, enhances access to information and knowledge ultimately improving competitiveness in the economy. Innovation, technology development and transfer have the potential to address key development challenges facing the country including: low industrialization and value addition; infectious disease outbreaks; limited application of ICT; low research and innovation in industry and academia; climate change issues; and low quality of life. 391 Agenda 2063 posits that by 2023, Africa’s youth will not only be mobile across the continent, but 15percent of all new business start-ups will emanate from their ingenuity and talent acquired in part from the fruits of the skills revolution driven by science, technology and innovation (STI). SDG Goal 17 (target 17.6) puts in place mechanisms for technology transfer and adoption as well as promotion of science and innovation by promoting North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation, and enhance knowledge sharing on mutually agreed terms. The East African Vision 2050 articulates that STI, whether embodied in human skills, capital goods or practices and organizations, is one of the key drivers of economic growth and sustainable development. The Uganda Vision 2040 identifies Science, Technology Engineering and Innovation (STEI) among the key fundamentals required to achieve the Vision aspirations. 392 However, Uganda has not adequately prepared to use STI to industrialize. This is because; i) there are no formal mechanisms put in place to facilitate technology transfer; ii) the country’s investment on STI is currently very small; iii) the country is yet to establish any incubation and technology parks to facilitate innovation and technology development; and iv) there are no formal established mechanisms linking universities and research institutions with industry to facilitate development and commercialization of new innovations. 393 The goal of this programme, therefore, is to increase the application of appropriate technology in the production and service delivery processes through the development of a well-coordinated STI eco-system. 179 NATIONAL PLANNING AUTHORITY 394 The key targets to be achieved by this programme over the next five years include: (i) Increase the Global Innovation Index from 25.3 to 35.0; (ii) Increase Gross Expenditure on R&D as a percentage of GDP (GERD) from 0.4 percent to 1 percent; (iii) Increase business enterprise sector spending on R&D (percent of GDP) from 0.01 percent to 0.21 percent; and (iv) Increase the number of Intellectual Property Rights registered per year from 2 to 50.

17.2 — Situation Analysis

17.2 Situation Analysis 395 Uganda is not investing significantly in Science, Technology (including ICT), and Innovations. The 2019 Global Innovation Index (GII) ranks Uganda at 102 out of the 129 countries, compared to Kenya, Rwanda, and Tanzania ranked 77, 94 and 97, respectively. In particular, the country’s expenditure on research and development (R&D) was only 0.4 percent of GDP, business expenditure on R&D was 0.01percent and the country logged about 250 patent applications with only 2 registrations. 396 Government has established the necessary institutions, legal framework, and infrastructure to facilitate STI, nonetheless, this is still inadequate. With regard to institutional framework, the Ministry of Science Technology and Innovation (MoSTI) was established in 2016 to advocate for, promote and monitor the progress of STI. With regard to the legal framework, the Trade Secrets Act (2009), the Trademark Act (2010), the Industrial Property Act (2014), and the Plant Variety Protection Act (2014) were developed. In regard to infrastructure a successful model of ST&I technology promotion was developed through shared-use incubators, among others. Nonetheless, there is need to improve the regulatory frameworks for Bio-Safety and oversight of research projects and institutions. Additionally, the rate of turning innovations into targetable outputs that have impact on economic development is still low. 397 To realise the benefits of the 4th Industrial Revolution, investing in the development of a solid STI eco-system (figure 16.1) is critical. This will be done through: incorporating science education in the curricula from primary and high school levels to the encouragement of research poles around existing universities; establishing partnerships between university research institutions and industry as a key driver of improving the overall ecosystem making it attractive for human skills; broadening the culture of science, technology and innovation; making science and technology accessible to all levels of learning, including the public through the media to show how research can drive high technology innovation and wealth creation, and; knowledge sharing both nationally and internationally is critical. 180 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Figure 17. 1: Pillars of the Global Innovations Index (WIPO, 2019) 398 Over the next five years, focus on harnessing STI will be on developing of a well- coordinated STI eco-system. 17.3Programme Objectives 399 To achieve the targeted results, the objectives of this programme are to: 1) To develop requisite STI infrastructure; 2) To build human resource capacity in STI; 3) To strengthen R&D capacities and applications; 4) To increase development, transfer and adoption of appropriate technologies and innovations; 5) To improve the legal and regulatory framework.

17.3.1 — Interventions

17.3.1 Interventions 400 In order to achieve the programme objectives and intended results, the following interventions laid out in Table 17.1 will be prioritized: 181 NATIONAL PLANNING AUTHORITY Table 17. 1: STI Interventions and Respective Actors Interventions Actors Objective 1: Develop requisite STI infrastructure 1. Support the establishment and operations of Technology & Business MoSTI, MFPED, incubators and Technology Transfer centres; MLHUD, LGs, Private Sector, DPs 2. Support the establishment and operations of Science and Technology Parks to MoSTI, MFPED, facilitate commercialization; MLHUD, MTIC, LGs, Private Sector, UMA, DPs 3. Support academia and research institutions to acquire R&D infrastructure; MoSTI, MFPED, MLHUD, MTIC, MoES, LGs, Private Sector, DPs 4. Establish a material science, nano & bio science technology centres, Space MoSTI Science and Aeronautics Technology Institute 5. Initiate and establish funding linkages for STI with multi-national and MoSTI, MoH, MAAIF, development partners; UVRI, UMA, Research Institutions, Academia, Private Sector, DPs 6. Create a favourable policy environment to attract private sector funding for MoSTI, MoH, MAAIF STI; 7. Establish a Research and Innovation Fund. MoSTI, MFPED Objective 2: Build institutional and human resource capacity in STI 1. Develop and Implement a National STI Advancement and Outreach Strategy; MoSTI 2. Support the review of the curriculum and delivery methods at all levels of MoSTI, MoES, NCDC, education with a view of promoting innovation; NCHE, Academia, Private Sector, DPs 3. Design and conduct practical skills development programmes MoSTI, MoES, NCHE, Academia, Private Sector, DPs 4. Design and implement special programmes for Nano technology, space MoSTI, MEMD, MoH, exploration, nuclear technology, bio sciences, ICT and engineering; MAAIF, MFPED, NCHE NPA, Academia, Private Sector, All MDAs, DPs 5. Develop a framework for promotion of multi-sectoral and multilateral MoSTI collabourations a. Monitor and evaluate the mainstreaming of ST&I in all sectors b. Strengthen the capacity of MDAs to effectively implement ST&I interventions including deployment of ST&I advisers to MDAs Objective 3: To strengthen R&D capacities and applications 1. Develop and popularize a National STI Research Agenda for STI; MoSTI, MoICT&NG, MoH, MAAIF, MTIC, NPA, EPRC, Academia, Private Sector, DPs 2. Develop and implement a National Science and Technology Innovation MoSTI, MoICT&NG, Strategy; MoH, MAAIF, LGs, UIRI, UNCST, UMA, Private Sector, DPs 3. Strengthen the Intellectual Property (IP) value chain management; MoSTI, MoICT&NG, MoH, MJCA, MAAIF, MoIA LGs, URSB 4. Develop and maintain a national STI Information Management System MoSTI, MoICT&NG, (including a database of new and on-going Scientific Research, technologies MFPED, MoH, MAAIF, innovations and indigenous knowledge from public and private sectors); UBoS, NPA, All MDAs, Private Sector, DPs 5. Increase investment in R & D in key priority sectors like; agriculture, Oil & MoSTI, MEMD, MoH, Gas, Minerals, Energy, Health, Transport; MAAIF, MoWT, 182 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors MFPED, NARO, NaGRIC, Academia, Private Sector, DPs 6. Establish research collaborations at local, regional and international level; MoSTI, MEMD, MoH, MAAIF, MoWT, MFPED, NARO, NaGRIC, Academia, Private Sector, DPs 7. Develop, oversee and implement programmes in new and emerging areas of MoSTI, MEMD, MoH, space science, marine, nuclear, data and climate science, nanotechnology, MAAIF, MFPED, NPA, bio-technology, among others; Academia, Private Sector, All Sectors, DPs 8. Create capacity on application of drones, satellite imagery through GIS, real- MoSTI time disaster modelling, and widespread connectedness, improve emergency response and production; 9. Increase availability of and access to multi-hazard early warning systems and MoSTI, OPM disaster risk information to save lives and reduce losses to disasters. 10. Conduct ST&I surveys and studies for use in evidence-based planning and MoSTI, MAAIF, MoH, policy formulation MICT Objective 4: Increase development, transfer and adoption of appropriate technologies and innovations 1. Develop and implement a National Technology Transfer and Adoption MoSTI, MoICT&NG, Strategy; NITA-U 2. Develop strategic local and international partnerships and cooperation on MoSTI, Academia, technology transfer and adoption; Private Sector, All Sectors, DPs 3. Support the development of standards for domestic products and services; MoSTI, MTIC, UNBS, Private Sector 4. Establish platforms for the interaction between the academia, research MoSTI, NPA, UMA, institutions, industry and state and non-state actors. Universities 5. Increase public investment in technology transfer and adoption. MoSTI, MoFPED, MTIC 6. Strengthen the function of technology acquisition, promotion as well as MoSTI transfer and adoption Objective 5: To improve the legal, institutional and regulatory framework 1. Develop strategies to domesticate and implement international conventions MoSTI, MoFA and treaties that facilitate STI; 2. Develop policies, laws and regulations for technology development, transfer MoSTI, MoICT&NG, and market development and attraction of private funding and FDI in STI. MoJCT, Parliament, Cabinet Secretariat 3. Develop, review and amend policies to promote the development and uptake MoSTI, MoJCT, of technologies Parliament, Cabinet Secretariat 4. Develop a framework for promotion of multi-sectoral and multilateral MoSTI, MoFA collabourations

17.3.2 — Implementation Reforms

17.3.2 Implementation Reforms 401 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Develop and implement service and service delivery standards for the STI; 2) Establish a framework where MDAs implement STEI joint initiatives between their R&D departments, academia and industry; 183 NATIONAL PLANNING AUTHORITY 3) Review the education curriculum to mainstream STEI and R&D to produce globally competitive human resource.

17.3.3 — Programme Human Resource Requirements

17.3.3 Programme Human Resource Requirements 402 Successful implementation of this programme will require addressing the following human resource gaps: Planetary science specialists; Applications developers; Astrochemistry and cosmochemistry specialists; Planetary science specialists; Animal Geneticists; Optical Assembly Technicians; Big data analysts; Clinical research specialists; Machine learning and Artificial Intelligence (AI) specialists; Multimedia Artists and Animation specialists; Project investment appraising specialists; Scientific researchers; Systems Analysts; Software Developers among others. Table 17.2 details the status of the availability of skills in short supply whose training is not available in Uganda and skills in short supply with training available in Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. Table 17.2: Qualifications and Skills Needs for: Innovation, Technology Development and Transfer Programme Estimated 5-Year Qualifications and Skills Status Gap Astrobiology specialists 717 Astrochemistry and cosmochemistry specialists 598 Astronomists specialists 598 Cosmology experts 609 Nanotechnologists 598 Optical Assembly Technicians 1,494 Planetary science specialists 998 Space archaeology specialists 598 Animal Geneticists 1,811 Applications developers 3,173 Applications Engineers 1,918 Big data analysts 1,912 Clinical research specialists 1,315 Machine learning and Artificial Intelligence (AI) specialists 1,368 Multimedia Artists and Animation specialists 1,321 Project investment appraising specialists 2,390 Scientific researchers 1,948 Software Developers 2,928 Systems Analysts 1,572 Key for the table Skills in Short supply and Training Skills in Short supply and Training is in- is not available in country country 184 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 18: COMMUNITY MOBILIZATION AND MINDSET CHANGE

18.1 — Introduction

18.1 Introduction 403 Community mobilization for mind-set change for development can have far- reaching repercussions on the lives of the people and society. Mind-set change brings with its great benefits, including public appreciation of the country’s development agenda and increased awareness for ownership and social accountability. It helps to enhance the well-being of the people or groups by changing their attitudes, norms, practices and behaviours. In addition, it helps build capacities of communities to assess their needs, identify options for addressing them, prioritize, leverage resources, and create sustainable solutions. 404 The regional and continental perspectives and aspirations as espoused in Agenda 2063 is a strong cultural identity, common heritage, values and ethics. The EAC Vision 2050 also calls for a systematic mind-set change on the way to economic development, which must encompass the greater Pan-Africa vision, Regional Values and adoption of a productivity culture. In addition, the Uganda Vision 2040 highlights the need for development and promotion of a well-defined ideology and a national value system which is subscribed to by every citizen. The ‘mind-set’ of Ugandans should be brought to the forefront of national attention and considered as a key issue in the discourse of national development. 405 Limited awareness and implementation of a national value system has contributed to a weak sense of responsibility, ownership and accountability of development programmes among the general populace. This is mainly due to: (i) a dependency syndrome; (ii) a high selfish tendency leading to corruption; (iii) short-sightedness; (iv) a low sense of nationalism/patriotism; (v) a weak community development function (vi) a low saving culture; and low nurturing of innovations. 406 The goal of this programme therefore is to empower families, communities and citizens to embrace national values and actively participate in sustainable development. 407 The key results to be achieved over the next five years are: (i) Increase the proportion of families, citizens and communities informed about national and community programmes from 30 to 90 percent; (ii) Increase the participation of families, communities and citizens in development initiatives by 80 percent; (iii) Increased media coverage of national programmes; (iv) Increased spirit of accountability and transparency; (v) Increased household savings and investments; (vi) Increased social cohesion and civic competence; 185 NATIONAL PLANNING AUTHORITY (vii) Increased uptake and/or utilisation of public services (education, health, child protection, population services, water and sanitation, livelihood programmes etc.) at the community and district levels; (viii) Increased adult literacy rate from 72.2 to 80 percent; (ix) Reduction in prevalence of negative social norms and cultural practices that perpetuate gender inequality. 18.2Situation Analysis 408 The 1995 Constitution of Uganda, mandates the state to mobilize, organize, and empower its citizens to build an independent and sustainable foundation for development. The Local Governments Act (Cap 243) also offers a statutory role for local authorities to take lead in community governance and promote the well-being of the community. This is provided through the practical mechanisms in effective community leadership; integrating national priorities in planning and various agencies at the local level; implementing development programmes and monitoring in line with the national priorities. However, most local governments have low resource revenues to support implementation of community mobilisation initiatives. 409 In addition, the Equal Opportunities Act 2007 provides for sensitizing and mobilizing communities to demand for equal treatment or consideration in the enjoyment of rights and freedoms, attainment of access to services, education, employment and physical environment as well as the participation in the social, cultural and political activities regardless of sex, age, race, colour, ethnic origin, tribe, creed, religion, health status, social or economic standing, political opinion or disability. 410 Government has tried inculcating the right attitudes and mind-sets through an expansive community involvement approach such as Barazas to inform bottom-up participative planning and decision-making. Government has also invested in the promotion of patriotism clubs to enhance civic education and initiated the Harmonized Participatory Planning Guide to deepen community involvement and ensure actors are well coordinated at local Government level. In addition, Government has invested in mobilizing and facilitating the participation of Ugandans in the diaspora to support the country’s growth and development. 411 Further, efforts towards mind-set change have been made through such projects as the establishment of the National Farmers Leadership Centre (NFLC) - a ‘village self-help’ programme, which was formally opened in May 2016. NFLC approaches the mindset change from the viewpoint of ‘skilling’ by training (Saemaul Undong) and agricultural development. However, skilling has to be complemented with work and social ethics. The country should go beyond acquiring knowledge and capacity to espouse mind- set change if it is to achieve ‘socio-economic transformation’. 412 Nevertheless, there is general lack of responsibility and ownership of government programmes, a serious obstacle to development. This is attributed to low popularisation and domestication of development initiatives, programmes and policies to lower levels; 186 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 functional and allocative inefficiency; poor monitoring and supervision; and weak implementation. The uptake in appreciating and participating in community initiatives is attributed to passive, unproductive and a highly dependent population coupled with low literacy levels of citizens. Despite the existence of free universal primary and secondary education, about 26 percent of Ugandans aged 10 years and above are still illiterate; 38.5 percent of pupils who enrol in P.1 do not complete P.7; and 12 percent of Ugandans aged 6-12 years, 3 percent of those aged 13-18 years and 6 percent of those aged 19-24 years have never attended school. 413 A ‘dependency syndrome’ is so widespread throughout the country and at all levels of society. There is a general tendency of people waiting for the government to come to their aid for the most basic things that they can do for themselves contributing to high poverty incidences at 21 percent. For instance, 17 percent of rural households do not have pit latrines while 63 percent have no access and are not using a hand washing facility. This greatly leads to poor health outcomes among families and communities due to limited water and sanitation facilities. Limited sensitization and involvement on the importance and maintenance of water sources like boreholes has led to low ownership after project implementation for sustainability. 414 There is a high tendency among Ugandans to consider self-interests before anything else. A major hindrance to development is the civil servants who are devoid of any sense of duty and responsibility in the delivery of public services. This not only breeds conflict of interest and corruption, but also, more fundamentally, drastically undercuts the government’s performance. Economic loss due to disruptions and delays in public service, not to mention outright acts of corruption is enormous. 415 Short-sightedness is quite evident in daily work practices. Sloppy work, the habit of leaving things undone, a failure to keep to deadlines and promises, poor time management, among others, are the ‘norm’ rather than the exception in a variety of fields ranging from unskilled chores to construction projects. Continuous monitoring and supervision is required to ensure that work is accomplished. 416 There are several behavioural barriers to adoption of positive mind sets cushioned by long years of social conditioning. These are demonstrated by harmful culture, beliefs and practices that promote stigma and discrimination, inability to live healthy and productive lifestyles. High rates of child marriages, teenage pregnancies, gender-based violence, female genital mutilation (FGM), and child sacrifice are manifestation of a failing social safety net. 417 Weakness in the sense of nationalism and patriotism is another general trait. Absence of a properly articulated common national ideology has denied the population an opportunity to rally around a common goal and value system to instil values such as; patriotism, work ethics, integrity, positive attitudes and mind-sets, national identity, and positive cultural practices as the basis for participatory civic awareness and engagement. It has also compromised the ability of institutions to manage information flow to guide and shape the mindset and attitudes of the population. There is still evidence of ideological disorientation because citizens are still inhibited in terms of the consciousness indicated 187 NATIONAL PLANNING AUTHORITY in negative cultural practices. The breakdown of the family unit has worsened instilling positive values and attitudes at an early stage of development. 418 Participation of cultural and religious institutions in community development programmes has not been institutionalized. The role of cultural and religious institutions in instilling and nurturing values, norms and behaviours towards a common goal has not been harnessed. Government has not effectively harnessed the power of society (or ‘social capital’) for economic prosperity and community development. Also, some cultures still practise negative cultural behaviours such as child sacrifice, child marriages, FGM, gender-based violence (GBV) and limited use of indigenous knowledge to support creative industries. 419 The expansive community development structure, from the national level down to the parishes has had limited impact on mobilizing the population to engage in meaningful productive activities to generate household income. This is partly due to: underfunding; lack of basic resources including transport; coordination and reporting tools; and training materials to effectively coordinate agencies and mobilize communities. Community mobilization infrastructure at the local governments’ levels including; halls, play grounds, libraries, among others is either dilapidated or lacking, especially in the new districts. 420 In addition, there is duplication of the community mobilization function across sectors, making it incoherent and disjointed. Cited among the MDAs carrying out Community Mobilization prior to service delivery include: Health, Water and Environment, Education and Sports, Works and Transport, Energy, Agriculture, Tourism, Trade and Industry, Justice Law & Order, Public Sector Management and Local Government. This contributes to lack of or limited coordination, ownership and sustainability for most public projects. 421 Going forward, experiences need to be taken from the NFLC and rolled out as a basis for social capital mobilization for rural community development. From this, communities are no longer simply recipients of, or followers to, the central leadership, but they turn out to be active participants and leaders or change agents for community development. In the next five years therefore, emphasis will be placed on actively engaging families, communities and citizens to provide more public awareness, sensitization for positive mind-set change, and reducing negative cultural beliefs that hinder people from participating in development programmes. 18.3Programme Objectives 422 In order to address the above constraints and challenges, the objectives of this programme are to: 1) Enhance effective mobilization of families, communities and citizens for national development; 2) Strengthen institutional capacity of central and local government and non-state actors for effective mobilization of communities; 3) Promote and inculcate the National Vision and value system; and 188 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 4) Reduce negative cultural practices and attitudes.

18.3.1 — Interventions

18.3.1 Interventions 423 To achieve the above objectives, this plan will prioritize the following interventions under this programme as highlighted in Table 18.1. Table 18.1: Community Mobilization Interventions and Respective Actors Interventions Actors Objective 1: Enhance effective mobilization of families, communities and citizens for national development. 1. Review and implement a comprehensive community mobilization (CMM) OP, MOGLSD, ICT&NG, strategy UBC, MoLG, Uganda a. Prepare a Community Mobilization and Empowerment (CME) Media Centre, GCIC Coordination Framework b. Design and implement activities aimed at promoting awareness and participation in existing government programmes; c. Establish feedback mechanism to capture public views on Government performance and enhance citizen participation in the development process d. Identify transformational youth champions per district to create a critical mass required to effect mind-set change in country 2. Develop and implement a national civic education programme aimed at improving MOGLSD, JSC, ICT&NG, the level of awareness of roles and responsibilities of families, communities and UHRC, EC, OP, MoLG, individual citizens LGs 3. Design and implement a programme aimed at promoting household engagement MOGLSD, UBC, OP, in culture and creative industries for income generation; MoLG 4. Develop a policy on diaspora engagement; MOGLSD, MOFA 5. Implement the 15 Household model for social economic empowerment National Women Councils, Local Council women Leaders, MOGLSD, MoLG, Youth councils, PWD Councils, CSOs Objective 2: Strengthen institutional capacity of central and local governments and non-state actors for effective mobilization of communities 1. Equip and operationalize Community Mobilization and Empowerment (CME) MOGLSD, MoLG, OP, institutions/structures of central, local government and non-state actors for LGs, Religious and effective citizen mobilization and dissemination of information to guide and shape Cultural institutions and the mindsets/attitudes of the population other Non-State Actors 2. Establish and operationalize Community Development Management Information MOGLSD, LGs, OP, System (CDMIS) at parish and sub-county level. MoLG 3. Institutionalize cultural, religious and other non-state actors in community MOGLSD, LGs, OP, development initiatives MoLG, Religious and Cultural institutions and other Non-State Actors Objective 3: Promote and inculcate the national Vision and value system 1. Develop and implement a national service programme; MOGLSD, MOPS, UCSC,MOES, MODVA, MoLG, MoICT&NG 2. Popularize the national vision, interest and common good for the citizenry MoICT&NG, MOGLSD, NPA, UBC, MoLG 3. Establish a National incentives framework including rewards and sanctions for MoPS, OP (Ethics & best performing workers, leaders and communities; Integrity), MoLG 4. Develop and/or operationalize a system for inculcating ethical standards in the MoGLSD, MoLG, OP formal, informal and all communities. (Ethics & Integrity) 5. Develop and enforce ordinances and by-laws to ensure the national vision and LGs, MoGLSD, MoLG, value system is adhered to OP (Ethics & Integrity), MoJCA, UPF Objective 4: Reduce negative cultural practices and attitudes 189 NATIONAL PLANNING AUTHORITY Interventions Actors 1. Conduct awareness campaigns and enforce laws enacted against negative and/or MOGLSD, MoLG, NPC, harmful religious, traditional/cultural practices and beliefs. JLOS, LGs, OP, DPs, UBC, Religious and Cultural institutions and other Non-State Actors 2. Promote advocacy, social mobilisation and behavioural change communication OPM, MOGLSD, MoLG, for community development. LGs, MOH, OP, MOES, MoICT&NG, MOGLSD, MOWE, MoLG, LGs, Non-State Actors, DPs

18.3.2 — Implementation Reforms

18.3.2 Implementation Reforms 424 The key implementation reform required to fully implement this programme is to establish a Technical Coordination Committee of the Community Mobilization and Mind-set change programme at Ministry of Gender, Labour and Social Development (MGLSD) to coordinate joint activities with the Ministry of ICT and National guidance (MoICT&NG), Office of the President and Ministry of Defence and Veteran Affairs. 190 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 19: GOVERNANCE AND SECURITY PROGRAMME 19.1Introduction 425 Good governance is essential for enabling development in economic, political, environment and social sectors. Efficient political and economic strands promote social order. A stable, predictable and secure political environment is a pre-requisite for socio- economic development. This involves protecting gains from internal instability and external aggression. The society fabrics at individual, household, community and national levels must be at peace for any development to take place. The rule of law is the foundation of a free society that places limits on Government authority such that all citizens of that society including the rulers, lawmakers, judges, and members of all social classes are equally subject to a common set of laws and by implication, are not subject to Government action that is unsupported by the law. 426 The 2030 Agenda (SDG 16) recognises the need to build peaceful, just and inclusive societies that provide equal access to justice and strong institutions. Aspiration 3 of Agenda 2063 is to have an Africa of good governance, democracy, respect for human rights, justice and the rule of law. Pillar 3.6 of the EAC Vision 2050, calls for democratic values, human rights, access to justice and the rule of law entrenched in all East African Partner States. According to the Uganda Vision 2040, the tenets of good governance include constitutional democracy, protection of human rights, rule of law, political and electoral processes, transparency and accountability, government effectiveness and regulatory quality and security. Particularly the Vision 2040 identified human rights observance as a critical feature of good governance and the rule of law. 427 However, weak adherence to the rule of law and existence of internal and external security threats are still major challenges. This is due to: (i) weak policy, legal and regulatory frameworks for effective governance; (ii) weak business support environment; (iii) low respect for and observance of human rights and fundamental freedoms; (iv) limited access to and affordability of justice; (v) high crime rates (vi) weak societal security structure and (vii) low recovery rate of public funds from individuals implicated in corruption. 428 The goal of the programme is, therefore, to improve adherence to the rule of law and capacity to contain prevailing and emerging security threats. 429 The key results to be achieved over the next five years are: (i) Improve on the Corruption Perception Index from 26 percent to 35 percent; (ii) Increase the Democratic Index from 6.5 percent to 8.6 percent; (iii) Increase the expenditure on R&D by Security Sector from UGX 7 billion to 10 billion; (iv) Increase percentage expenditure on R&D from 0.01 to 0.1; (v) Increase the percentage of citizens’ participation in electoral processes from 80 percent to 90 percent; 191 NATIONAL PLANNING AUTHORITY (vi) Increase the rate of case disposal from 60 percent to 75 percent; (vii) Attain a 25 percent enrolment in the National service by 2025; (viii) Decrease the percentage of backlog cases in the system from 18 percent to 10 percent; and (ix) Increase the percentage of districts with one stop frontline JLOS service points from 67.5 percent to 90 percent. 19.2Situation Analysis 430 Uganda’s security policy framework, identifies and groups potential threats to Uganda and its people into different categories to include: border insecurity; destabilizing external influences; political instability; environmental stress and resource constraints; human underdevelopment; internal insecurity; economic shocks and stress; social polarization and civil disaster. The threats to security and peace in the country range from low-level civil disorder, large scale violence, subversion and sometimes organized and armed insurgency. Foreign powers have also acted as a threat to internal security, by either committing or sponsoring, violent extremism, terrorism or rebellion, without actually declaring war. 431 Government has progressively and successfully dealt with internal and external threats to security and peace of the country through various interventions and institutional mechanisms. The superior focus has been through strengthening institutions, and equipment for defense, intelligence and policing. However, it is apparent that emerging and potential threats to peace and security are periodically encountered and thus the need for new approaches, adequate preparation for timely, detection, prevention and effective management of these new complexities. Some of these threats include; cybercrime, influx of foreigners and potential manipulation of citizenship, porous borders, integration and globalization, radicalization, also referred as violent extremism, natural resource conflicts, election violence, small arms and light weapons, terrorism, and transnational border crimes. 432 ICT provides both an opportunity and a threat to security. The introduction of ICT into crime prevention, including CCTV cameras, Criminal Database, Finger Print Scanners, DNA and Forensics, Tracking, communication, has also improved the way in which the police and other services operate. The police has invested in mobilizing and empowering communities to prevent violence and crime through ICT using innovations such as UPF “Mobi” and “SUMA” applications. These, along with other strategies have led to reduction in the crime rate from 667 in 2017 to 551 in 2019 for every 100,000. However, there is still a challenge of kidnaps and high profile murders whose investigations have not been concluded. There is need for formulation of a national policy on crime prevention, strengthen the capacity of crime fighting agencies including investigation, prosecution and correctional institutions to reduce the crime rate and effectively and efficiently respond to crime. With the growth of more sophisticated, technology based and syndicated crime, the methods and skills required of law enforcement personnel needs to be enhanced to meet the new challenge. 192 192 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 433 A number of successes have been registered regarding legislation, representation and government oversight. Out of 80 bills submitted by the Executive to the Parliament, fifty-four (54) were passed into law as of FY 2018/19; six (6) were withdrawn and 20 are still pending. Representation of electorates in Parliament also increased from 417 MPs in the FY 2015/16 to 433 MPs in FY 2018/19 with exclusion of the UPDF representatives and Ex-Official Members. Women representation in Parliament also increased to 34.9percent by FY 2018/19. Parliament disposed of 73 percent of the reports tabled and delivered 75 percent of the targeted Ministerial Statements. Due to the oversight function of Parliament and the actions of the anti-corruption institutions there was also improvement in the score of the Corruption Perception index to 26/100 in 2018 from 25/100 in 2015. 434 However, there are still a number of challenges that include: i) Inadequate appreciation of multiparty democracy that has led to friction among the individual members of parliament, their political parties and the electorate; ii); delays in processing of bills into Acts of parliament affecting the delivery of services iii) inadequate information on the implementation of the international protocols which makes it challenging for parliament to oversee government’s commitments and/ or activities carried out at international level; iv) backlog of the constitutional reports for consideration by the parliamentary oversight committees v) increased instances of maladministration and administrative injustice in the public sector resulting into ineffective service delivery; xi) corruption in the judicial system; and limited civic and voter education. 435 Public trust and confidence in JLOS institutions has increased from 49 percent to 59 percent since 2016; however, this is still too low due to: (i) Case backlog and delays in delivery of justice remains one of the main impediments in access to justice. The level of backlog now stands at 18percent and the average time taken to dispose of cases stands at 810 days. (ii) Access to JLOS services – the Uganda Vision 2040 prioritized improving access to justice through enhancing physical presence of institutions involved in the delivery of justice. This was to be achieved through construction of justice centres to ensure completeness of the chain of justice across all districts. Currently, the sector has one-stop front line service point in 66.7 percent of 117 the districts. There is a weak justice system for children with limited child friendly services in JLOS institutions. Data capturing the national diversion rate is now 76.3 percent compared to the baseline of 75 percent and the 2020 target of 80 percent. (iii) Access to legal aid is essential to guaranteeing equal access to justice for all, especially for citizens who do not have sufficient financial means. Although, the proportion of magisterial areas accessing state funded legal aid services has increased from 26 percent in 2016 to 39.02 percent in FY2018/19, this is still too low. Currently, legal aid service provision is restricted to mainly legal representation in certain legal matters especially at higher court levels by the state. Legal aid service provision at lower courts is minimal and usually provided by 193 NATIONAL PLANNING AUTHORITY non-state actors. Legal aid is limited for those unable to afford advocates. There is need to fast track the legal aid law as well as enhance the State Brief Scheme and Pro-bono services. (iv) Transparency and accountability - The clearance rate of corruption cases by the Anti-Corruption Division (ACD) increased from 96 percent in 2016/17 to 97.7 percent in 2017/18 while the clearance rate of complaints against lawyers, police and JLOS officers increased from 75 percent in 2016/17 to 97.7 percent in 2017/18. The implementation of the Sector anti-corruption strategy is on track. The corruption perception index improved from 0.25 to 0.26. Furthermore, the ODPP made applications for 7 orders (in respect of 138 properties) for restraining properties of officers implicated in corruption cases. Consequently, 7 percent of the value of proceeds of crimes was recovered vis-à-vis the set target of 20 percent. The low performance was due to; on-going valuation process of some properties, high cost of valuation, understaffing in Government Valuation Department. However, the recovery processes are constrained by the weak asset recovery frame work and the service is concentrated in Kampala. 436 In particular, there is need to strengthen the capacity and operations of the commercial justice institutions to provide fast and effective dispute resolution in all the specialized areas and in the area of Alternative Dispute Resolution. Furthermore, land justice disputes continue to take up a large proportion of the load in terms of case backlog in the civil arena and have been noted to contribute to several criminal matters, including murders, arsons, assaults and trespass. The delay in disposal of these matters also means that vast assets are tied up in litigation for prolonged periods, therefore hindering economic development processes. Strategies will be employed to give particular attention to the disposal of land matters and to strengthen the institutions that are specialised in this field. 437 Uganda’s reliability of policing service (index) dropped from 4.0 in 2017 to 3.6 in 2018 Global Competitiveness report. The daily average population of prisoners in custody has been on the upsurge from 30,509 prisoners in FY2010/11 to 53,033 prisoners in FY2017/18 – an annual growth of 8.3 percent against the 3.0 percent national population growth. However, investments in rehabilitation of inmates led to a reduction in the rates of re-offending from 23 percent in 2015 to 17 percent in 2018. Also, as a result of investments in crime fighting agencies the conviction rate increased to 62 percent from 53 percent in 2014. 438 JLOS institutions are frequently accused in cases of human rights violations and this erodes public confidence in law enforcement agencies, legitimacy in upholding the rule of law, and the resultant awards against Government lay a heavy financial burden on the State. Additionally, the inadequate knowledge within the public domain and citizenry contributes to low levels of effective demand for rights, implementation of citizen responsibilities, accountability, and therefore creates opportunity for impunity. There is need to strengthen institutional compliance of service delivery systems as well as enable people to appreciate/know their rights/service points and standards. 194 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 439 Uganda is currently the third biggest refugee hosting country worldwide and largest in Africa. Unresolved conflicts in the Great Lakes region are driving these refugee numbers and also affect regional trade potential. Uganda is currently hosting about 1.33 million refugees. Many of these conflicts have their roots in the exploitation of and access to natural resources, identity clashes and governance issues. The lack of a comprehensive national policy on migration, fragmented approach to migration issues by key stakeholders, lack of comprehensive data providing evidence base to policy makers, insufficient preparation of service providers meant to create a protective environment for vulnerable migrants, are all critical issues that need to be addressed in order to unlock the potential of migration in Uganda and enhance the protection of vulnerable individuals 19.3Programme Objectives 440 In order to address the above constraints, the objectives of this programme are to: 1) Strengthen the capacity of security agencies to address emerging security threats; 2) Strengthen policy, legal, regulatory and institutional frameworks for effective governance and security; 3) Strengthen people centred security, legislation, justice, law, and order service delivery system; 4) Reform and strengthen JLOS business processes to facilitate private sector development; 5) Strengthen transparency, accountability and anti-corruption systems; 6) Strengthen citizen participation in democratic processes; 7) Strengthen compliance and implementation of the Uganda Bill of Rights; and 8) Enhance Refugee protection and Migration Management.

19.3.1 — Interventions

19.3.1 Interventions 441 In order to achieve the above objectives, NDPIII will prioritise the interventions in Table 19.1. Table 19. 1: Governance and Security Interventions and Respective Actors Interventions Actors Objective 1: Strengthen the capacity of security agencies to address emerging security threats 1. Improve the capacity and capability of security sector through training and MODVA, ISO, ESO, equipping personnel; MoIA, UPF, UPS a. Strengthen capacity to handle emerging sophisticated crimes such as cyber-crimes. 2. Enhance the welfare and housing of security sector personnel; MODVA, ISO, ESO, MIA, UPF, UPS 3. Seamlessly transition, resettle and reintegrate veterans into productive MODVA, MoIA, UPF civilian livelihoods; 4. Strengthen research and development to address emerging security threats; MODVA, ISO, ESO, MoIA, MoSTI, 5. Establish and operationalize a National Service Programme; MODVA 6. Rollout CCTV surveillance project MoIA, UPF 7. Strengthen identification and registration of persons’ services; NIRA, DCIC 195 NATIONAL PLANNING AUTHORITY Interventions Actors 8. Strengthen border control and security; MODVA, MoIA, DCIC, UPF, MoH, LGs 9. Strengthen counter terrorism; MODVA, MoIA, DCIC, UPF 10. Strengthen conflict early warning and response mechanisms; MODVA, MoIA, DCIC, UPF, OP, MoH, LGs 11. Strengthen prevention of Trafficking in Persons; MoIA, DCIC, MODVA, UPF, OP, LGs 12. Strengthen the control and management of small arms and light weapons. MoIA, DCIC, MODVA, UPF, OP Objective 2: Strengthen policy, legal, regulatory and institutional frameworks for effective governance and security 1. Review and enact appropriate legislation; Parliament, MDAs a. Domesticate international and regional treaties. 2. Review, and develop appropriate policies for effective governance and MoDVA, OP, MoIA, security; MoJCA, UPF, ULRC 3. Simplify, translate and disseminate laws, policies and standards; Parliament, ULRC, MDAs, DEI 4. Improve the legislative process in Parliament and Local Governments to Parliament, LGs ensure enhanced scrutiny and quality of legislation Objective 3: Strengthen people centred delivery of security, justice, law and order services ͳǤ Develop appropriate infrastructure for legislation, security, justice, law, and Parliament, MoJCA order; Institutions, MoDVA ʹǤ Promote equitable access to justice through legal aid services; MoJCA, Judiciary, a. Strengthen family justice ULRC, UHRC, DGAL, b. Promote child friendly justice procedures LDC, UPS, UPF ͵Ǥ Strengthen transitional justice and informal justice processes; MoJCA, LG courts ͶǤ Enhance crime prevention and strengthen community policing; UPF, MoLG, LGs ͷǤ Strengthen response to crime; UPF, UPS, Judiciary, MoJCA ͸Ǥ Strengthen citizenship identification, registration, preservation and control; NIRA, MoIA, DCIC, URSB, LGs Objective 4: Reform and strengthen JLOS business processes to facilitate private sector development ͳǤ Re-engineer business processes to reduce red tape in service delivery MoJCA, MoIA, URSB, especially regarding commercial and land dispute resolution; DCIC, MOICT & NG, a. Strengthen case management systems NITA-U, UPS, Judiciary b. Reform rules and procedures c. Increase efficiency of Court Processes d. Integrate and automate information management systems e. Strengthen capacity of duty bearers f. Enforce commercial laws g. Roll out alternative dispute resolution h. Support relevant courts for faster resolution of land disputes Objective 5: Strengthen transparency, accountability and anti-corruption systems 1. Strengthen the oversight role of Parliament over the Executive; Parliament 2. Enhance the Public Demand for Accountability; Citizenry, URA, OPM (Barazas), MDAS, LGs 3. Strengthen the prevention, detection and elimination of corruption; IG, OAG, DEI, PPDA, FIA, JLOS institutions, Media, CSOs 4. Strengthen and enforce Compliance to accountability rules and regulations OAG, MoFPED, Parliament 5. Develop and implement an asset recovery framework DEI, IG, OP, UPF, Judiciary, MoJCA 6. Mainstream Anti-Corruption initiative (transparency, Accountability and Anti-corruption Anti-Corruption- TAAC) initiative in all MDA Plans, Projects/Programmes institutions, NPA, and budgets MDAs, LGs, MOFPED Objective 6: Strengthen citizen participation and engagement in the democratic processes 196 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors 1. Strengthen democracy and electoral processes; EC, Parliament, CSOs, a. Increase participation of the population (including vulnerable persons) UHRC in civic activities 2. Strengthen the representative role of MPs, Local Government councillors Parliament, LGs and the Public Objective 7: Strengthen compliance with the Uganda Bill of Rights 1. Finalise and Implement the Uganda National Action Plan on Human Rights UHRC, DPs, OPM, NPA, and adopt the National Action Plan on Business and Huma Rights; UPF, MoGLSD a. Translate and disseminate the bill of rights in local languages b. Improve access to improved water, sanitation and hygiene in detention facilities c. Translate and disseminate the bill of rights in local languages d. Strengthen efforts to combat SGBV 2. Integrate HRBA in all public policies, legislation, plans and programmes NPA, UHRC Objective 8: Enhance Refugee protection and Migration Management 1. Coordinating the responses that address refugee protection and assistance OPM, MoLG, LGs, DPs 2. Operationalizing the national refugee policy OPM, MoLG, LGs 3. Develop a migration policy OPM, MoLG

19.3.2 — Implementation reforms

19.3.2 Implementation reforms 442 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Develop and implement service and service delivery standards for Governance and security sector MDAs.

19.3.3 — Programme Human Resource Requirements

19.3.3 Programme Human Resource Requirements 443 Successful implementation of this programme will require addressing the following human resource gaps: Admiralty (Maritime) Law specialists; Entertainment Law specialists; Bankruptcy Law specialists; Business (Corporate) Law specialists; Civil Rights Law specialists; Criminal Law specialists; Customs and Border Inspectors; Environmental Law specialists; Family Law specialists; Firefighters; Health Law specialists; Immigration Law specialists; Intellectual Property Law specialists, among others. Table 19.2 details the status of the availability of skills in short supply whose training is not available in Uganda and skills in short supply with training available in Uganda. The interventions to address key skills and competencies are highlighted under objective two of the Human Capital Development Programme and the National Human Resource Development Plan (NHRDP). To holistically address these gaps, sectors and LG will develop respective human resource development plans while MDAs will produce capacity building plans. 197 NATIONAL PLANNING AUTHORITY Table 19.2: Qualifications and Skills Needs for: Governance and Security Programme QUALIFICATIONS AND SKILLS Status Estimated 5-Year Gap Admiralty (Maritime) Law specialists 1,434 Entertainment Law specialists 1,434 Personal Injury Law specialists 717 Private investigator 5,975 Bankruptcy Law specialists 1,076 Business (Corporate) Law specialists 717 Civil Rights Law specialists 2,151 Criminal Law specialists 2,868 Customs and Border Inspectors 3,944 Environmental Law specialists 1,243 Family Law specialists 1,530 Firefighters 2,390 Health Law specialists 1,673 Immigration Law specialists 2,199 Intellectual Property Law specialists 1,482 International Law specialists 956 Judges 1,434 Labour (Employment) Law specialists 1,195 Military Law specialists 1,554 Police Inspectors and Detectives 1,195 Real Estate Law specialists 1,793 Tax Law specialists 1,088 Key for the table Skills in Short supply and Training Skills in Short supply and Training is in- is not available in country country 198 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 20: PUBLIC SECTOR TRANSFORMATION

20.1 — Introduction

20.1 Introduction 444 Poorly functioning public sector institutions and weak governance are major constraints to equitable development. The public service plays a vital role in providing public goods, such as defence, public order, property rights, macroeconomic management, environment protection, and coordinating private sector activity. As countries get more globalised governments face increasingly complex and cross-cutting issues, such as economic volatility, climate change and migration. Public servants are under greater public scrutiny as citizens are becoming increasingly aware and impatient. To this end, public service delivery needs to develop new dimensions to enable appropriate response to changes in the global environment as well as to the demands of an active citizenry. 445 Ultimately, public sector transformation contributes to the NDPIII objective of strengthening the role of the state in guiding and facilitating development through increasing the effectiveness and efficiency of the public sector in response to the needs of the citizens and the private sector. 446 The aspiration of Agenda 2030 is to build effective, accountable and inclusive institutions at all levels by 2030 (SDG 16). Agenda 2063 (Goal 12) calls for building capable institutions and transformed leadership at all levels. The EAC Vision 2050 states the need to raise the level of R&D, science and technology and innovation in the public sector to enhance industrial competitiveness. Additionally, the Uganda Vision 2040 aims to institute measures to strengthen public sector management and administration by ensuring that the public officials are fully responsible and accountable for all the resources under their control. 447 However, there is weak performance, low accountability for results and unsatisfactory work ethic in the public sector that does not adequately respond to the needs of citizens and the private sector. This is due to: (i) poor accountability systems and undue focus on processes rather than results; (ii) inefficient government systems and processes; (iii) duplication of mandates; (iii) inadequate talent management across government; (iv) an inefficient and inadequately funded decentralized system of government; (v) limited computerization of government systems; (vi) high level of corruption; and (vii) ineffective and inadequate communication and feedback mechanisms. 448 The goal of the programme is therefore, to improve public sector response to the needs of the citizens and the private sector. 449 The key results to be achieved over the next five years are: (i) Increase Government effectiveness Index from -0.52 to 0.01; (ii) Reduce corruption as measured by the corruption perception index from 26 percent to 35 percent; 199 NATIONAL PLANNING AUTHORITY (iii) Increase the attractiveness of Uganda as an investment destination as measured by the Global Competitiveness Index from 48.9 to 55. 20.2Situation Analysis 450 Improving public sector performance and effective response to citizen needs requires addressing three facets of the public sector: the people (civil servants, their leaders and citizens); the public sector architecture and systems; and resources required. The citizens should be able to demand and receive accountability for results and value for money from the public servants. To facilitate this, there is need for clear systems to adequately measure performance for results in a transparent manner and access to timely, accurate and comprehensible public information. This promotes active communication between the implementers of programmes and the public and enhances the work ethic and attitudes of public servants as they are incentivised to deliver. However, the public servants require efficient public sector architecture, systems and resources to effectively deliver results. 451 Efforts to improve public sector performance have been biased to processes, neglecting the people who deliver in these processes. A series of public sector reforms (PSRs) have been implemented in Uganda since the 1980s. These began with structural adjustment programmes in the early 1980s and later reforms in all key Government sectors, such as public service, public finance, public sector coordination, auditing, and anti-corruption, were implemented. While reforms in the 1980s and 1990s aimed at achieving public sector efficiency, those in the 2000s focused on achieving effectiveness through public financial management initiatives and modern management practices, such as Results Oriented Management (ROM). Despite these reforms, the public sector is not well-accountable for results with low work ethics to respond to citizen needs. This is largely due to reforms that should ensure that public sector servants are accountable for results have been weak or largely not enforced. In addition, there is inadequate dissemination of the requisite public information to the citizenry to effectively influence public opinion and active participation in national programmes. There is poor coordination among the various Government communication actors sometimes resulting in conflicting messages to the public. 452 Accountability systems and institutions have been strengthened but they largely focus on processes rather than holding the public sector accountable for results. In 2000s Uganda adopted the ROM to consistently and systematically enhance the development of individual, institutional, and state capacity, and subsequently the sustainability of improvements in service delivery. It was expected that ROM would enhance accountability for results and build confidence and trust in public service delivery, and subsequently to transforming Uganda’s economy and society. On paper, the tenets of ROM are in place. Results based planning, budgeting, personnel performance, monitoring and evaluation and management information systems have been set up. 453 In 2003 Cabinet approved the National Integrated Monitoring and Evaluation Strategy (NIMES) under the Office of the Prime Minister (OPM) to ensure coordinated monitoring and evaluation of all Government programmes. This was followed by the Public Sector 200 200 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Reform Programme (PSRP - 2005/06–2010/11) that sought to address several public sector challenges such as skills gaps and weak management; weak performance and accountability and poor pay. The Comprehensive National Development Planning Framework (CNDPF) approved by Cabinet in 2007 sought to ensure coordination in planning and budgeting across agencies of Government. The CNDPF provided ground for the National Development Plan (NDP) and the Uganda Vision 2040 that succeeded the Poverty Eradication Action Plan (1997-2009). Output based budgeting has since been reformed to programme-based budgeting. Nevertheless, performance contracts for all accounting officers have not been administered and enforced. Budgets do not adequately respond to plans and results. The alignment of the budgets at national and LG levels also continues to be a challenge. Monitoring and evaluation reports are not implemented and enforced. This has weakened public service accountability for results and has built a less than satisfactory work ethic in public service. 454 Some progress has been made to develop service and service delivery standards that provide a benchmark against which to measure and hold public servants accountable but this is not across the entire Government and where they exist, they are not enforced. Service delivery standards have been developed in Health, Education, Environment, Physical planning and Water but these have never been approved by the sectors nor have they been certified by NPA and Parliament. The absence of service delivery standards makes it difficult for holding public servants accountable and assessing service delivery progress. 455 Public sector reforms in government systems and architecture have been undertaken to improve realization of results, nevertheless, they are yet to yield significant results. In 2018 a Public Service Restructuring report that aimed at stopping mushrooming of agencies and duplication of mandates was produced but is yet to be implemented. Further, the report focused only on government Agencies neglecting the need for necessary reforms in the mainstream Ministries which led to creation of these agencies in the first place. As such, implementation of the report recommendations might not achieve the desired results unless, a comprehensive public sector architecture study is carried out and implemented. 456 In regard to Public Financial Management (PFM) several reforms have been implemented since the early 1990s, achieving the maintenance of robust and stable fiscal and macro- economic policies and fundamentals, more accurate planning and budgeting, enhanced control and management of public funds and higher standards of scrutiny and oversight of collection and utilization of public resources. These include the enactment of the Budget Act, 2001; the 2003 Public Finance and Accountability Act (PFAA), the Public Procurement and Disposal of Public Assets (PPDA) Act, 2003; the Public Finance and Accountability Regulations, (PFAR), 2003; and the Treasury Accounting Instructions (TAI), 2004; the implementation of the Integrated Financial Management System (IFMS); and the Treasury Single Account (TSA) in 2013. Nonetheless, several challenges remain, particularly in the areas of budget credibility, enforcement of laws and regulations 201 NATIONAL PLANNING AUTHORITY (compliance), combatting corruption and insufficient domestic revenues to finance the budget according to national priorities. 457 At entry level, although Government recruits relatively good talent it faces challenges in managing it. Public service human resource planning is disjointed. A majority of public servants recruited do not undergo induction training required to be civil servants. Where it is happening, it is disjointed and not informed by national common core values. Efforts have been made to strengthen the Civil Service College for it to continuously train and retrain public servants but more is required to achieve desired results. In- service continuous training is inadequate, where it exists it is not informed by a needs and impact assessment for training. While the NALI was set up to train civil servants a sense of nationalism and core values, training is not mandatory. Further, in addition to low remuneration it is not commensurate to performance as both good and poor performers are provided the same pay. This kills morale and leads to self-selection of poor performers in the public sector. Indeed, there is no framework to reward innovation, instead, those who attempt to innovate but fail to get the desired results may bepenalized. There is a general sense of entitlement among public servants without corresponding need to improve service delivery. Often private sector employees provide better services for seemingly less remuneration, particularly at low cadre levels. 458 In 1993 Government made strides of taking services nearer to people through implementing the decentralization policy however failure to accompany it with fiscal decentralization has made it inefficient. Despite decentralization policy of taking services nearer to the people, services are largely re-centralized and the share of budget executed at LGs is dismal. The number of LGs, in line with the decentralization policy, is consistently rising, yet the share of the budget going to LGs is declining. LGs increased from 133 (including municipalities) in FY2015/16 to 168 in FY2018/19. However, the share of LG transfers of the national budget has on average stagnated at around 10 percent, during this period. This is below the NDPII target of 30 percent. This is making it difficult for LGs to deliver on their mandate. This directly affects the quality of social services at service delivery points such as schools, health facilities, roads, extension services and management of natural resources among others. Further, contrary, to decentralization policy, several services have been re-centralized. These re-centralized services include: building primary schools’ classrooms, toilets and providing furniture under Ministry of Education and Sports and building health centres under Ministry of Health. 459 Further, budget allocations to LGs are mainly for paying workers’ salaries, however, these workers are to a large extent redundant due to inadequate corresponding operational resources. 68.4 percent of the LG Budgets are for Wages and salaries; and pensions and gratuities. The corresponding non-wage that is required to facilitate these workers to deliver services is dismal (13 percent or UGX 2.5 billion per LG) to keep them busy. Also, the development budget is dismal (18 percent). This leads to workers’ redundancy and poor quality of service delivery at the sub-national level. 460 Uganda has a story of contradiction in the area of fighting corruption. On the one hand, the country has a wide range of comprehensive anticorruption institutions and 202 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 extensive legislation, even by international standards. On the other hand, weak enforcement of the laws, with evidence that corruption in Uganda has been increasing since the mid-2000s. One of the main agencies mandated by the Constitution to fight corruption is the Inspectorate of Government (IG). Other institutions mandated by law to curb corruption include the police, judiciary, Directorate of Public Prosecutions (DPP) and Parliament. While the number of convictions in corruption-related cases has gone up, largely as a result of the creation of the Anti-Corruption Court in 2010, the number of corruption cases closed due to lack of sufficient evidence has similarly risen, pointing to the weak investigative capacity of anti-corruption agencies. Research reports and various media outlets in Uganda are also awash with reports of corruption in the public sector. 461 The general public has also not helped the fight against corruption as the corrupt are applauded for being ingenious. While corruption is condemned across the general public, often the same public will protect the corrupt once they are prosecuted. Further, the peer pressure from the public for need to amass wealth leads to high tendencies of corruption. Also, with the general citizenry condoning corruption and not holding public servants accountable for actions, efforts by Government will not yield the intended results. 462 Strengthening the external and internal audit functions within Government has improved compliance and value for money. In this regard, auditing reforms have involved the enactment of Audit Act 2008, and recruitment and professionalisation of human resources, both in the Office of the Auditor General (OAG) and within the internal audit directorate in MoFPED. These improvements have led to timely audits and production of audit reports for Parliament’s scrutiny and discussion. Uganda was the winner of the African Organisation of Supreme Audit Institutions (AFROSAI) prize of 2011 and 2013, and the country’s OAG is rated among the best supreme audit institutions in Africa. Outcomes from auditing initiatives are poor, partly due to the fact that the OAG is a reporting office to Parliament, with limited powers to enforce its recommendations. Findings indicate that reports submitted by OAG to Parliament take a long time to be debated and not many of the recommendations are implemented by the Executive. 20.3Programme Objectives 463 In order to address the above constraints, the objectives of this programme are to: 1) Strengthen accountability and transparency for results across Government; 2) Streamline Government structures and institutions for efficient and effective service delivery; 3) Strengthen strategic human resource management function of Government for improved service delivery; 4) Deepen decentralization and citizen participation in local development; and 5) Increase transparency and eliminate corruption in the delivery of services. 203 NATIONAL PLANNING AUTHORITY

20.3.1 — Interventions

20.3.1 Interventions 464 In order to achieve the above objectives and intended results, NDPIII will prioritize the following interventions highlighted in Table 20.1. Table 20. 1: Public Sector Transformation Interventions and Respective Actors Intervention Actors Objective 1: Strengthen accountability for results across government 1. Review and strengthen the client chatter feedback mechanism to enhance OP, OPM, MoPS the public demand for accountability 2. Develop and enforce service and service delivery standards MoPS, OPM, NPA 3. Strengthening public sector performance management MoPS, OP, OPM, a. Administer and enforce performance contracts for political leadership MoFPED, NPA b. Administer and enforce performance contracts across public service from Commissioner- level upwards c. Administer a pay reform and welfare system (eg housing) commensurate with performance contracts d. Institute the practice of strategic human resource management in all MDAs and LGs 4. Enforce compliance to the rules and regulations OP, OPM, MoLG Objective 2: Streamline Government architecture for efficient and effective service delivery 1. Restructure Government institutions (MDAs & sectors) to align with new OP; MoPS; OPM; programme planning, budgeting and implementation MoFPED; NPA; a. Undertake functional analysis and reforms of government institutions b. Review and implement the recommendations on harmonization and restructuring of institutions report (2018) 2. Review and develop management and operational structures, systems and MoPS, OPM, MoLG standards 3. Rationalize and harmonize policies to support public service delivery OPM, MoPS, MoLG, MoFPED, NPA Objective 3: Strengthen human resource management function of Government for improved service delivery 1. Undertake nurturing of civil servants through patriotic and long-term MoPS, OP; OPM; UPDF; national service training NPA, LGs 2. Design and implement a rewards and sanctions system MoPS, OP; OPM; IGG; a. Introduce exit policy for non-performers and rewards for star MoFPED performers at all levels. 3. Empower MDAs to customize talent management (Attract, retain and MoPS, OPM, MoFPED, motivate public servants) MoLG 4. Roll out the Human Resource Management System (Payroll management, MoPS, MoFPED, MoLG productivity management, work leave, e-inspection) 5. Develop and operationalize an e-document management system MoPS 6. Review the existing legal, policy, regulatory and institutional frameworks MoPS, MoFPED, MoJCA, to standardise regulation and benefits in the public service Parliament 7. Upgrade Public sector training to improve relevance and impact. MoPS, MoE, NCHE, a. Strengthen training partnerships with tertiary institutions tertiary institutions b. Implement E-learning programmes at the civil service college Objective 4: Deepen decentralization and citizen participation in local development 1. Strengthen collaboration of all stakeholders to promote local economic OP, MoLG, MoFPED, development; LGs, PSFU, DPs a. Provide a conducive environment to facilitate Private Sector participation in investment in the local economy 2. Increase participation of Non-State Actors in Planning and Budgeting MoFPED, NPA, MoLG, LGs 3. Operationalize the parish model MOLG, OPM, OP, LGs, UBC, NPA 204 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Intervention Actors 4. Build LG fiscal decentralization and self-reliance capacity MoPPED, MoLG, LGFC, a. Evaluate the fiscal decentralization policy NPA, OP, OPM, URA, LGs Objective 5: Increase accountability and transparency in the delivery of services 1. Reengineer public service delivery business processes MoICT&NG; NITA-U; a. Implement service delivery process reforms MoPS, UBC b. Automate institutional management functions c. Implement e-governance across the public sector 2. Design and implement electronic citizen (e-citizen) system MoICT&NG, NIRA, a. Develop a mechanism that links vital personal data systems NITA, OP, OPM, URA, MoH, MoES, Security Agencies, UBC 3. Improve access to timely, accurate and comprehensible public information MoICT&NG, Uganda a. Develop a common public data/information sharing platform Media Centre, UBC, UCC, b. Review the information and communication institutional framework GCIC c. Review and enforce standards of communicators and information disseminators on government business

20.3.2 — Implementation Reforms

20.3.2 Implementation Reforms 465 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years: 1) Develop and enforce service and service delivery standard across the public sector 205 NATIONAL PLANNING AUTHORITY CHAPTER 21: REGIONAL DEVELOPMENT

21.1 — Introduction

21.1 Introduction 466 The overall national efforts in poverty eradication are being derailed due to some regions dragging the poverty-reduction gains. Poverty eradication efforts provide a mixed story. This story is at three levels: First, there are parts (Central, Kigezi, Lango) of the country where poverty is significantly lower than the national average; Second, are parts (Acholi, West Nile and Karamoja) of the country where poverty is significantly higher than the national average but it is declining very fast. Third, there are parts (Bukedi, Busoga, Teso and Bunyoro regions) of the country where poverty is increasing. Poverty reduction targets have been missed as evidenced by poverty reversals in some parts of the country despite enormous and sustained Government efforts. In fact, between FY2012/13 and FY2016/17, the percentage of people living below the poverty line (USD 1.00 per day) increased from 19.7 percent to 21.4 percent after more than 15 years of sustained reduction in the percentage of people living below the poverty line. And moreover, the increase was higher in rural areas (from 22.8 percent to 25 percent) than in urban areas (from 9.3 percent to 9.6 percent). 467 The aspiration of Agenda 2030 (SDG 10) entreats countries to reduce inequality within and among countries, and also strive to end poverty in all its forms everywhere (SDG 1). Countries are required to reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions by 2030. The EAC Vision 2050 (Chapter 2 section 2.4) is to have a developed, stable and competitive regional bloc that will ensure “enhanced inclusiveness in development and socio-economic transformation”, and has set a target to reduce the percentage of people living below the poverty line to less than 10 percent by 2030. The Uganda Vision 2040 emphasizes balanced development through ensuring that all regions of the country benefit from growth of the national economy. 468 There is imbalance in the development of regional potential. This is due to i) regional income poverty; (ii) limited and underdeveloped regional value chains; (iii) inadequate economic and social infrastructure; (iv) poor local leadership and weak public sector management in the regions. 469 Therefore, the goal of the regional development programme is to accelerate equitable, regional economic growth and development. 470 The key results to be achieved over the next five years are to reduce poverty in the lagging regions of Uganda as is depicted in Table 21.1: Table 21.1: Key results to be achieved by the Regional Development Programme Sub-Region Baseline (percent) Target (percent) Karamoja 60.8 42.1 Bukedi 43.7 25.8 Bugisu 40.9 23.5 Busoga 37.4 19.1 West Nile 34.9 26.0 206 206 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Sub-Region Baseline (percent) Target (percent) Acholi 33.4 18.3 Teso 25.1 19.7 Bunyoro 17.4 6.3

21.2 — Situation Analysis

21.2 Situation Analysis 471 The NDP II targeted poverty to reduce from 19.7 percent in FY 2012/13 to 14 percent in FY2019/20; however, poverty reversed to 21.4 percent. In absolute terms, this implies that the number of poor people increased from 6.6 million in 2012/13 to 8.03 million in 2016/17. Majority of the poor people live in rural areas but are disproportionately concentrated in the sub-regions of Bukedi, Busoga, Bugisu, Teso, Acholi, West Nile, Karamoja and Bunyoro regions compared to other parts of the country (Map 21.1) 472 Poverty reversals have been highest in Bukedi, Busoga, Bugisu and Teso (Table 21.2)). These four sub-regions combined constitute 24 percent of the total population of Uganda. In addition, the poverty levels in West Nile, Acholi and Karamoja remain significantly above the national average. Table 21. 2: Changes in poverty in targeted regions between 2012/13 and 2016/17 Poverty rate Poverty rate Sub region 2016/17 2012/13 Percent Change 1. Bukedi 43.7 29.4 14.3 2. Busoga 37.5 22.8 14.7 3. Bugisu 34.9 25.8 9.1 4. West Nile 34.9 42.0 -7.1 5. Karamoja 60.1 74.5 -14.3 6. Acholi 33.4 45.5 -12.1 7. Teso 25.1 20.8 4.3 8. Bunyoro 17.3 8.5 8.8 473 Based on poverty levels and trends over the last five years, therefore, this programme has chosen eight geographical sub-regions as the areas of focus for accelerated poverty reduction efforts categorized into three groups. The first group (consisting of Bukedi, Busoga, Bugisu and Teso) is comprised of those sub-regions where poverty reversals were highest and poverty headcount is significantly above the national average. The second group (consisting of West Nile, Acholi and Karamoja) is comprised of those where poverty levels still remain significantly above the national average, even though poverty levels are reducing. The last group comprises of Bunyoro where the percentage of people below the poverty line doubled over this period. 207 NATIONAL PLANNING AUTHORITY Map 21.1: Sub-Regional Poverty Status 208 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 474 Overall, poverty is driven by heavy reliance on subsistence rain-fed agriculture as the only economic activity. Significant number of people in these sub regions depend on subsistence rain-fed agriculture as their main source of livelihood. At the time of poverty measuring, these regions were witnessing a drought. In addition, poverty in Bukedi region is also attributed to low farm output due to pests diseases and high child poverty. In Busoga and Bunyoro regions, the locking of small farm land sizes for sugar cane growing is highly likely contributing to the increase in poverty. In Karamoja, the high poverty levels are attributed to the harsh weather conditions as well as poor agricultural and cultural practices. Other contributing factors include large household sizes (high fertility) and low education attainment, particularly for household heads; poor transport connectivity; and low access to grid electricity. 475 Finally, unexploited natural resources (minerals and tourism sites) in these subregions helps to explain the persistent poverty levels. For example, there is an estimated 300 million tonnes of marble in Karamoja; an estimated 1 billion tonnes of inferred Nickel in Kitgum; an unquantified volume of gold in Busia, Namayingo, Karamoja, Kitgum and Moyo and other minerals. The tourism potential is also not well exploited, for instance, the Mt. Elgon, Teso rocks and Karamoja cultural potential is under developed and under-marketed. 476 Over the next five years, this programme will focus on accelerating poverty reduction in those regions lagging behind the national poverty line by, providing affirmative actions for these regions. In addition to affirmative actions, interventions from other programmes, will be employed to address: i) heavy reliance on subsistence rain-fed agriculture using rudimentary technology as the only economic activity; ii) unexploited natural resources in these subregions; iii) poor transport network; iv) low access to grid electricity.

21.3 — Programme Objectives

21.3 Programme Objectives 477 In order to address the above constraints, the objectives of this programme are to: 1) Stimulate the growth potential of the sub-regions in the key growth opportunities (Agri-business, Tourism, Minerals and Manufacturing); 2) Close regional infrastructure gaps for exploitation of local economic potential; 3) Strengthen and develop regional based value chains for LED; 4) Strengthen the performance measurement and management frameworks for local leadership and public sector management. 478 Under area-based agribusiness development, the programme has prioritized the following agro-enterprises from among those already prioritized under the Agro-Industrialization programme, based on agroecological zones (table 21.3). The mineral and tourism related enterprises will be exploited based on the location of such activities. 209 NATIONAL PLANNING AUTHORITY Table 21. 3: Selected enterprises by sub region Above the national average Above the national average but Below the national average but and worsening improving reversing Busoga (4 enterprises) Karamoja (3 enterprises) Bunyoro (4 enterprises) • Sugarcane • Livestock (cattle, goats), • Maize • Maize • Cereals (Sorghum) • Cassava • Fish • Vegetable oil (sunflower) • Sugarcane • Cassava • Livestock (Dairy/beef) Bugisu (3 enterprises) Acholi (4 enterprises) • Coffee • Vegetable oil (sunflower, sesame, • Maize cotton, soya) • Banana • Cashew nuts • Livestock • Cassava Bukedi (4 enterprises) West Nile (4 enterprises) • Cassava • Livestock/Beef • Cotton • Poultry • Rice • Coffee • Fish • Tea Teso (4 enterprises) • Citrus • Livestock • Vegetable oil (Nuts, Soya, Sunflower) • Cassava

21.3.1 — Programme Interventions

21.3.1 Programme Interventions 479 In order to achieve the above objectives and intended results, NDP III will prioritise the affirmative interventions in Table 21.4. These are affirmative interventions, additional to contributions from the other 17 programmmes. Table 21.4: Regional Development Interventions and Respective Actors Interventions Actors Objective 1: Stimulate the growth potential of the sub-regions through area-based agribusiness LED initiatives 1. Organize farmers into cooperatives at district level LGs, MGLD, a. Support Youth and Women cooperatives Farmers groupings b. Provide financing and extension services 2. Increase regulation of farm input markets to reduce adulteration MAAIF 3. Construct irrigation schemes and valley dams to ensure production all year round MWE, MAAIF 4. Strengthen agricultural extension services through increased supervision and LGs, CSOs, Farmers implementation of the parish model grouping 5. Strengthen research in the prioritized agro-enterprises for increase productivity NARO, OWC, Cooperatives 6. Establish an agricultural financing facility for farmers in target regions MAAIF, MFPED 7. Operationalize the Industrial and Business Parks situated in the target regions UIA. OWC 8. Establish post-harvest handling, storage and processing infrastructure including MTIC, MAAIF silos, dryers, warehouses, cold rooms and a warehouse receipt system for farmers in those regions 9. Establish demonstration farms for regionally identified commodities MAAIF 10. Establish a marketing system for the selected agro-enterprises (market information MTIC, MAAIF centres, standards, Packaging) 11. Develop targeted agri-LED interventions for refugees and host communities LGs, OPM, DPs Objective 2: Close regional infrastructure gaps for exploitation of local economic potential; 1. Develop community access and motorable feeder roads for market access LGs 210 210 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors 2. Increase transport interconnectivity in these programme regions to promote intra- MoWT, MOLG, regional trade and reduce poverty UNRA, LGs 3. Increase energy connectivity in these programme regions MEMD, MOLG, REA, LGs 4. Increase ICT interconnectivity in these programme regions MO ICT&NG, NITA Objective 3: Strengthen and develop regional based value chains for LED; 1. Develop and implement regional specific development plans NPA, MoLG, LGs 2. Develop region-specific tourism products in poverty-stricken regions MTWA, UTB 3. Facilitate formation of tourism groups in target communities (e.g. arts and crafts); MTWA, UTB 4. Establish regional tourism information centres; MTWA, UTB 5. Skill locals in hospitality (tour guide, hoteliers); MTWA, UTB 6. Nurture local private sector to participate in local, regional and global tourism MTWA, UTB value chains through training and credit extension 7. Expand, upgrade and maintain tourism support infrastructure MTWA, UTB 8. Organize the artisanal and small-scale miners into groups/cooperatives; MEMD 9. Provide incentives for acquisition of appropriate technology; MEMD 10. Provide training and extension services to ease the adoption of the acquired MEMD technology; 11. Incentivize private sector to offer industrial training and apprenticeship MFPED, MTIC opportunities; 12. Construct roads to support mining and mineral processing in the regions; MTW, UNRA 13. Extend adequate and reliable energy to support mining and mineral processing MEMD industries; 14. Provide water to support mining and mineral processing; MWE 15. Promote value addition through LED in the mining activities; MEMD 16. Restore degraded excavation sites; MWE, NEMA 17. Provide support to youth and women enterprises; 18. Undertake massive sensitization and awareness campaigns on environment. MWE Objective 4: Strengthen the performance measurement and management frameworks for local leadership and public sector management. 1. Introduce community score cards of local government performance MOLG 2. Institute regional ordinances and charters for regional government commitments MOLG to visions, roles and responsibilities.

21.3.2 — Implementation reforms

21.3.2 Implementation reforms 480 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years include: 1) Develop and implement regional development programmes in Busoga, Teso, Bukedi, and Karamoja, similar to the approach taken in Rwenzori, West Nile and Bunyoro; 2) Transfer the implementation and management of the programme to the Ministries of Local Government and Gender, Labour and Social Development to enable OPM focus on its primary mandate of coordination. 211 NATIONAL PLANNING AUTHORITY CHAPTER 22: DEVELOPMENT PLAN IMPLEMENTATION

22.1 — Introduction

22.1 Introduction 481 Evidence-based development planning, implementation/operational planning, resource mobilisation, budgeting and budget execution as well as effective monitoring evaluation and reporting are crucial tenets of effective policy implementation. In addition, strengthening statistical production and utilization as well as coordination and supervision, across all levels of plan implementation in a coherent manner, is critical to ensuring successful implementation of the Plan. 482 The aspiration of Agenda 2030 (SDG 17) and Agenda 2063 (Goal 12 and Goal 20) is to strengthen the means of implementation through continuous capacity-building, multi-stakeholder partnerships, ensuring policy and institutional coherence as well as data, monitoring and accountability. The EAC Vision 2050 states that successful implementation will depend on effective execution of functions and responsibilities of the different organs and institutions by strengthening institutions; improved accountability; and enhanced legal oversight. 483 However, slow implementation of the national development plans remains a major development challenge for Uganda. This is due to: (i) weak implementation planning and budgeting; (ii) weak M&E systems for supporting implementation and policy planning; (iii) limited financing and fiscal management; (iv) weak coordination of implementation; and (v) weak systems for statistical development. 484 The goal of this programme, therefore, is to increase efficiency and effectiveness in the implementation of NDPIII. 485 The key targets to be achieved over the plan period are to: (i) Achieve at-least 80 percent of the NDPIII targets; (ii) Increase the GDP growth rate from 6.3 percent to at-least 7 percent per annum; (iii) Increase the Revenue to GDP ratio from 15.6 percent to 18 percent by 2025; (iv) Reduction in Domestic Arrears as a percentage of total expenditure for FY N-1 from 1 percent in FY2017/18 to 0.2 percent; (v) Increase the alignment between the Annual Budgets and the NDPIII from 60 percent to 85 percent at national and programme levels; (vi) Maintain the proportion of supplementary budget expenditure (net of loan servicing) within 3 percent.

22.2 — Situation analysis

22.2 Situation analysis 486 Successful development plan implementation is a function of addressing all facets of the implementation cycle. This cycle revolves around strategic planning, cost estimation, annual prioritization, budgeting, implementation, auditing and accounting, monitoring and evaluation. This is reinforced by effective coordination and an efficient statistical 212 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 generation mechanism for results (see Figure 22.1). Development plan implementation is strong to the extent to which the cycle components are strong, otherwise implementation will be weak. Figure 22.1: Development Plan Implementation Cycle 487 Significant progress has been made in strategic planning, nevertheless, planning capacity is generally low particularly in implementation planning and at decentralized levels. In 2007, the Government adopted the Comprehensive National Development Planning Framework (CNDPF) that defines the planning process in Uganda, comprising: the 30-year National Vision; Three (3) 10-year plans; six (6) 5-year NDPs; Sector Development Plans (SDPs); Local Government Development Plans (LGDPs); Annual Work Plans (AWPs) and budgets. There is significant improvement in development of plans across government since the introduction of the CNDPF. As of 2018/19, 89 percent (16/18) of Sectors, 82 percent (104/127) of MDAs and 94 percent (153/162) of LGs had plans aligned to the NDPII. Despite the good progress in development of plans, due to existing weakness in planning in general particularly at 213 NATIONAL PLANNING AUTHORITY sector level, plans are not translated into budget interventions. Also, Human Resource (manpower) Planning is unsatisfactory as there is a large miss match between skills available and the labour market requirements. Further, the extent to which planning is informed by evidence requires strengthening. The country does not have a clear research and evaluation agenda to guide planning, implementation and policy making. As a result, research efforts by various public, private and non-governmental institutions has not been harnessed. 488 Public Investment Management (PIM) requires strengthening. Strides have been taken to develop PIM with the setting up of an appraisal unit in MoFPED and a Project Feasibility Studies Unit in NPA. Also, the first phase of Integrated Bank of Projects (IBP) covering pre-investment (project preparation and appraisal) has been developed and over 400 personnel from various MDAs have trained in the integrated investment appraisal. In addition, PIM Diagnostic and the Action Plan were developed and PIMS functions were institutionalized in MDAs. However, a 2018 PEFA assessment found that only 10 percent of projects are subject to independent economic analysis, guidelines for project selection are not consistently used (most projects are selected on the basis of financing rather than adequacy of design), recurrent costs are not adequately considered, procurement is slow and there are no standard rules and procedures to monitor all projects. Further, analysis of multi-year commitments of the PIP to free up resources for new development priorities is weak. Therefore, there is need to strengthen the PIMs policy framework to address these challenges. 489 Budgeting for results has significantly improved with the introduction of Performance Based Budgeting, nevertheless, budget alignment to plans requires strengthening. During the NDPII implementation, Budgeting transited from Output Based Budgeting (OBT) to results/performance based (Programme Based) budgeting. The NDPII results at outcomes, outputs and the corresponding indicators therefore informed the development of the Programme Based Budgeting System. To-date, the planning process has been reformed and taken the programme approach to delivery of common results. However, compliance levels of the annual budget to NDP require strengthening. Compliance level over the last four years has averaged only 60.3 percent with many priority growth sectors underfunded. Also, budget credibility is a concern, there is much volatility between budgeted and actual allocation. Persistent supplementary budget pressures compromise budget credibility. Further, budget allocations are heavily skewed towards MDAs as opposed to LGs where most of the implementation action is supposed to be. Transfers to local governments remain inadequate to support the effective delivery of decentralized functions and LED interventions. 490 Implementation of off-budget initiatives diverts effort of implementing institutions away from focusing on priority interventions and therefore affecting the credibility of the budget. Off-budget reduces realization of national outcomes due to three reasons. First, alignment of off-budget resources to the national plan is not certain. Second, it crowds out government budgets as public servants are overstretched to implement activities outside the budget, thus putting little attention to those within the budget. Third, 214 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 it can lead to duplication and wastage of resources due to double counting. There is need for a mechanism that comprehensively captures off-budget financing. This will also curtail development of projects that are not in NDPIII unless these are really emergency projects. 491 Slow progress has been made in mobilizing domestic resources to finance results. Reforms in tax policy and administration have contributed to an increased domestic revenue collection over time. A Domestic Revenue Mobilization Strategy, which will inform reforms in tax system has been developed. As a result, though, not yet sufficient, revenue collection has increased. On average, at least 75 percent of the national budget is domestically financed. However, the tax to GDP ratio remains low at 12.9 percent in FY2019/20. This limits the available resource envelope for implementation of key national priorities. Poor revenue collection in local governments is particularly a concern 492 Progress has been made in monitoring and evaluation. The evaluation function in Government has been operationalized and evaluation capacity built for state and non-state actors. In 2017 Universal Primary Education (UPE) policy in Uganda was evaluated. Also, Uganda Evaluation Association organized a successful 7th Uganda Evaluation Week in 2019. In addition, sectors and MDAs continued to produce mandatory periodic reports such as the Annual National Development Report (NDR); the Certificate of Compliance reports; Governments’ Annual and Half-Annual Performance Reports (GAPR/GHAPR); the Annual and Semi-Annual Budget Performance reports; and Annual Sector Performance Reports that are inform the respective annual reviews. However, a number of policies implemented have never been evaluated to determine their impact save for NDP mid-term reviews. For example, the. USE, Affirmative Action on girl child education, political representation at various levels of Government, public and private education at universities, privatization among others constitute some of the policies that require evaluation. Government needs to establish a framework for evaluation of all its projects, programmes and policies with a view of ascertaining their impacts hence evaluations ought to be conducted regularly and timely. Further a periodic institutional evaluation to enhance Government effectiveness is not done. 493 Coordination, monitoring and reporting of NDP implementation across Government requires strengthening. Sectors and MDAs work in silos often competing in the implementation space. The coordination framework in OP, OPM, MoFPED and NPA is not clear. OPM that is mandated to coordinate the implementation of Government programmes for results is also an implementer, which creates a conflict of interest and credibility challenges. The NDPII MTR found no evidence to show deliberate strengthening of coordination of implementation for purposes of enhancing NDP implementation. Weaknesses in systems for coordination of implementation including lack of NDP implementation oversight, weak use of information from monitoring and evaluation processes, duplication of efforts, waste of resources due to lack of synergies and timely sharing of information, poor data quality, and lack of central joint reviews is evident. The NDPII put in place various mechanisms such as National development 215 NATIONAL PLANNING AUTHORITY forums, Annual performance review, sector and MDA but these have never been operationalized. 494 Statistical data production and policy research successes registered include: Uganda Bureau of Statistics (UBoS) issued a number of reports covering Population and Social Statistics; Macroeconomic Statistics; Business and Industry Statistics; Agriculture and Environmental Statistics; Statistical Coordination and Administrative Support Services; District Statistics and Capacity Building. The other surveys undertaken include the Malaria Indicator Survey; listing of Education Institutions; Uganda National Panel Survey; Informal Cross Border Trade (ICBT) Survey; and Time to Cross Traders Perception Survey in the border posts of Mpondwe, Bunagana and Goli under the Great Lakes Region Facilitation Project. There has been a general improvement in the quality and quantity of statistics with the conduct of new surveys like the National Manpower Survey and the production of new outputs such as GIS enabled visualizations and geo- referenced statistical maps. In addition to the regular data production activities for social and economic statistics, new areas of statistical production were governance, peace & security, gender, science and technology, environment, oil and gas, satellite accounts, nutrition platform, and quarterly GDP were initiated. 495 Despite the achievements articulated above, the National Statistics System (NSS) continues to face a number of institutional, structural and capacity gaps that have inhibited the production of high-quality statistics. These gaps require addressing. 496 Strengthening the collection, coordination and harmonization of administrative data in particular, will be crucial.

22.3 — Programme Objectives

22.3 Programme Objectives 497 The overall objective of this programme is to ensure efficiency and effectiveness in the implementation of Plans. Specifically, the programme aims to: 1) Strengthen capacity for development planning; 2) Strengthen budgeting and resource mobilization; 3) Strengthen capacity for implementation to ensure a focus on results; 4) Strengthen coordination, monitoring and reporting frameworks and systems; 5) Strengthen the capacity of the national statistics system to generate data for national development; and 6) Strengthen the research and evaluation function to better inform planning and plan implementation.

22.3.1 — Interventions

22.3.1 Interventions 498 Prioritized interventions over the five-year period to achieve the above objectives are highlighted in Table 22.1. 216 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Table 22. 1: Development Plan Implementation Interventions and Respective Actors Interventions Actors Objective 1: Strengthen capacity for development planning 1. Strengthen capacity for development planning at the sector, MDAs and local government MOFPED, NPA, levels; NPC, NIRA, a) Facilitate Professional training and retraining in planning competences in MDAs MoLHUD, UBOS and LGs b) Develop a platform to facilitate sharing of spatial data for planning (Spatial Data Infrastructure) c) Integrate migration and refugee planning and all other cross cutting issues in national, sectoral and local government plans 2. Strengthen the planning and development function at the parish level to bring delivery of MOLG, MOPS services closer to the people; 3. Strengthen human resource planning to inform skills projections and delivery of national MOGLSD, NPA, human resource capacity to support expansion of the economy; UBOS 4. Strengthen Public Investment Management across the entire government to be able to OPM, OP, develop bankable projects on time MOFPED, NPA, a) Strengthen capacity for implementation/multi-sectoral planning (identify, design, MoLG, Universities appraise and execute projects and programmes that cut across MDAs and take advantage of synergies across sectors) along the implementation chain. b) Review the Development Committee guidelines in view of the emerging developments in PIMs to include gender and equity and green growth principles, among others c) Strengthen the capacity of the Development Committee and MDA project units to support the PIMs process d) Undertake real time monitoring of project and budget spending across all ministries through the Integrated bank of projects e) Develop and implement a PIMs policy f) Operationalise the project preparation fund Objective 2: Strengthen budgeting and resource mobilization 1. Fast track the implementation of the integrated identification solution linking taxation and MOFPED, URA, service delivery (e-citizen). NIRA, MOICT 2. Amend and develop relevant legal frameworks to facilitate resource mobilisation and MOFPED budget execution. 3. Expand financing beyond the traditional sources MOFPED 4. Deepening the reduction of informality and streamlining taxation at national and local MOFPED, URA, government levels URSB 5. Implement electronic tax systems to improve compliance both at National and LG levels. URA, MOLG, LG 6. Establish an appropriate, evidence-based tax expenditure “governance framework” to limit MOFPED, URA leakages and improve transparency 7. Build capacity in government agencies to negotiate better terms of borrowing and PPPs MOFPED 8. Align government borrowing with NDP priorities Parliament, MOFPED, NPA 9. Impose sanctions for accumulation of domestic arrears MOFPED 10. Harmonize the PFMA, PPDA, LGA, and regulations to improve the Public Financial MOFPED, OAG Management systems (PFMs). 11. Develop a Comprehensive Asset Management Policy MOFPED, MOPS, MOWT, MOLG 12. Strengthen the alignment of the Sector, MDA and LG Plans to the NDP III Parliament, MOFPED, NPA, Sectors, MOLG 13. Alignment of budgets to development plans at national and sub-national levels MOFPED, NPA, Sectors, MOLG, 14. Roll out Automated Procurement systems to all MDAs and LGs (e-GP). MoFPED, PPDA, 15. Strengthen Parliament to effectively play its role in the national budget processes for Parliament, proper implementation of NDPIII priorities. MOFPED, a) Review and strengthen the support structure in Parliament along the PFM reforms b) Ensure compliance of all provisions of the PFMA (2015) by MDAs 217 217 NATIONAL PLANNING AUTHORITY Interventions Actors 16. Integrate GoU Public Financial Management (PFM) Systems for integrated PFM systems. MoFPED, AGO, 17. Operationalise the system for tracking off-budget financing. MoFPED, 18. Fastrack the review and amendment of the relevant procurement laws, policies and MoFPED, PPDA, regulations to simplify the procurement process Parliament 19. Conduct a cost-benefit analysis of current tax exemptions and government subsidies MoFPED, NPA, Research organs Objective 3: Strengthen capacity for implementation to ensure a focus on results 1. Review and re-orient the institutional architecture for Community Development (from the MoPS, MoLG, parish to the national level) to focus on mindset change and poverty eradication; MoGLSD, 2. Harmonize the PFMA, PPDA and LGA and regulations to improve budget execution MoFPED, MoLG 3. Increase financing for local government investment plans; MoFPED, LGFC, NPA 4. Review and reform the Government Annual Performance Review (GAPR) to focus on OPM, NPA achievement of key national development results. 5. Strengthen implementation, monitoring and reporting of local governments MoLG, LGs Objective 4: Strengthen coordination, monitoring and reporting frameworks and systems 1. Operationalise the High-Level Public Policy Management Executive Forum (Apex OP, OPM, Platform); MoFPED, NPA 2. Expand the Terms of Reference for the Budget and National Economic Committees of MoFPED, Parliament to include consideration of the NDP; Parliament 3. Develop an effective communication strategy for NDPIII; NPA, OPM 4. Develop integrated M&E framework and system for the NDP; OPM, NPA, UBOS 5. Develop and roll out the National Public Risk Management system in line with MoFPED, NPA international best practices; 6. Enhance staff capacity to conduct high quality and impact-driven performance audits OAG across government; 7. Strengthen expenditure tracking, inspection and accountability on green growth MoFPED, NPA Objective 5: Strengthen the capacity of the statistical system to generate data for national development 1. Align and synchronize national survey and census programmes to NDPIII, Africa Agenda NPA, UBOS 2063, SDGs and other development framework data requirements; 2. Acquire and/or develop necessary statistical infrastructure in the NSS including physical, UBOS Information and Communication Technology and Human Resources; 3. Harness new data sources including big data, data science, block chain technologies and UBOS geospatial technologies in statistical production; 4. Amend the UBOS Act, 1998 to be inclusive of the NSS to better coordinate the NSS and UBOS define the roles of other players within the NSS Framework; 5. Review and update the National Standard Indicator Framework in line with the NDP III, UBOS Agenda 2063 and SDGs; 6. Standardize and operationalize use of standard statistical infrastructure including the rules, UBOS regulations and instruments for conducting censuses and surveys among data producers; 7. Mainstream documentation of methodologies (Metadata) for NSS indicators; UBOS 8. Build the capacity of civil society and Private Sector organisations in the production and UBOS use of statistics; 9. Undertake research to improve methodologies for key statistics and indicators; UBOS 10. Support Statistical professional development and application through collabouration with UBOS the academia and relevant international organisations; 11. Enhance the compilation, management and use of Administrative data among the MDAs UBOS, NIRA, LGs and LGs; a. Strengthen compilation of statistics for cross-cutting issues. (eg migration, gender, refugees and others) b. Strengthen production and use of disaggregated district level statistics for planning Objective 6: Strengthen the Research and Evaluation function to better inform planning and plan implementation 1. Develop the National Development Planning Research Agenda NPA, OP, OPM, MoSTI, MoFPED, Academia, CSOs, 218 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Interventions Actors Religious Entities, Cultural Institutions 2. Develop an integrated system for tracking implementation of internal and external audit MOFPED, OAG recommendations; 3. Expand the Performance/Value for Money Audits, Specialized Audits and Forensic MFPED, OAG Investigations undertakings 4. Strengthen the follow up mechanism to streamline the roles of the relevant oversight OP, OPM, committees to avoid duplication of roles; Parliament, NPA 5. Promote the use of big data analysis techniques in Audit and Investigations; MICT, NITA, MOFPED, OAG 6. Amend the relevant laws and regulations to strengthen institutional evaluation, policy Parliament, OP, evaluation, plan/programme and project evaluation; OPM, OAG, MOFPED, NPA 7. Build research and evaluation capacity to inform planning, implementation as well as OP, OPM, monitoring and evaluation; MOFPED, MoPS, NPA

22.3.2 — Implementation Reforms

22.3.2 Implementation Reforms 499 The key implementation reforms required to fully implement this programme and realise expected goals in the next five years include: 1) APEX platform should be operationalized to perform the oversight role and hence be accountable for delivery of results. 2) Strengthen the capacity of the Office of the Prime Minister to lead the overall coordination and reporting on implementation of NDPIII programmes and implied results. The programme coordination framework will be at three levels: Policy Level by the Prime Minister; Programme Coordinating level through Programme Coordinators; and at Sector level. This is illustrated in the figure 22.2. 219 NATIONAL PLANNING AUTHORITY Figure 22. 2 : Programme Coordination Framework a. Policy Level by the Prime Minister: The Prime Minister shall be responsible for the overall implementation of the NDPIII programmes. The Prime Minister will be required to steer policy engagements with all Ministers in charge of implementation of the programmes. The Prime Minister will report to Cabinet and implement the policy actions on implementation of the Plan. b. Programme Coordinator (PC) at OPM: The capacity at OPM will be built through establishment of programme coordinators to support programme coordination of the different sectors of the programme and follow up on the implementation of the plan. The programme coordinators will undertake the following roles: i. In line with the Sectors, identify the key policy and project requirements for the implementation of the programme interventions; ii. Identify key implementation issues to be resolved to enable the implementation of the programme; iii. Ensure coordination of the line Sector in implementation of the programme(s); iv. Oversee the alignment of non-state actor plans to the programmes; v. Propose annual targets with the line Sectors on key priorities of the Programme; vi. Collect regular data on the implementation of the programme; vii. Generate regular reports on implementation of the programmes; viii. Recommend reviews and evaluation of key programme policies and projects; and ix. Follow up implementation of the international frameworks e.g. SDGs within the programmes. 220 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 c. Sector Level: The Sector Working Groups (SWAPs) will identify all the programme interventions to be implemented by their respective MDAs. These shall be integrated in the Sector Development Plans and the respective MDAs strategic plans. The sectors shall also be required to guide the project identification, preparation, approval, reporting, and budgeting. The sector shall be required to undertake regular performance reviews to track delivery of their respective programmes’ results. 3) Develop capacity of planning and statistical units along the entire value chain across government 4) Develop a mechanism to capture off-budget financing. 221 NATIONAL PLANNING AUTHORITY PART IV: COSTING, FINANCING, RISK MANAGEMENT, AND MONITORING AND EVALUATION CHAPTER 23: COSTING AND FINANCING OF NDPIII PROGRAMMES 23.1The Overall Cost of the Plan 500 The overall cost of financing all the NDPIII planned programme interventions over the 5-year period is estimated at around UGX 411.681 trillion (average 40.9 percent of GDP,annually) of which UGX 276.878 trillion (average 27.5 percent of GDP, annually) is contribution by the Public (incl. off budget) while UGX 134.803 trillion is private sectorcontribution (less recurrent private sector expenditure). This means that 67.3 percent ofthe total resources expected to finance the Plan will be from GoU consolidated budget while32.7 percent will be from the private sector. Nevertheless, private contribution is significantly high if recurrent costs are included. Table 23.1: Total NDPIII Planned Expenditure FY2020/21-FY2024/25 Total NDPIII Costing 2020/21 - 2024/25 Programme Total 2020/21 2021/22 2022/23 2023/24 2024/25 Agro-industrialisation 18,656 3,942 3,438 3,431 3,361 4,484 Mineral Development 5,132 1,011 904 1,157 992 1,068 Sustainable Development of Petroleum Resources 6,355 1,337 1,146 1,441 1,168 1,262 Tourism Development 11,345 1,776 1,910 2,271 2,507 2,881 Natural Resources, Environment, Climate Change, Land and Water Management 11,902 2,264 2,313 2,537 2,283 2,505 Private Sector Development 7,586 1,346 1,306 1,566 1,564 1,805 Manufacturing 8,701 1,483 1,499 1,793 1,863 2,064 Integrated Transport Infrastructure and Services 52,249 8,404 8,467 11,918 11,538 11,923 Energy Development 8,181 1,822 1,514 1,869 1,436 1,539 Digital Transformation 15,865 2,392 2,440 2,717 3,208 5,108 Sustainable Urbanisation and Housing 7,242 1,366 1,341 1,536 1,431 1,568 Human Capital Development 54,669 10,164 10,358 10,167 11,145 12,836 Innovation, Technology Development and Transfer 5,161 927 978 983 1,034 1,238 Community Mobilisation and Mindset Change 18,985 3,032 3,266 3,710 4,169 4,809 Governance and Security 42,052 8,020 7,464 7,978 8,654 9,935 Public Sector Transformation 20,281 3,334 3,476 3,847 4,158 5,467 Regional Development 32,504 6,218 5,706 6,201 6,599 7,779 Development Plan Implementation 10,573 1,960 1,883 1,916 1,926 2,888 Interest Payments Due 74,244 12,432 13,651 14,742 15,374 18,045 Total Budget 411,681 73,232 73,059 81,780 84,408 99,203 23.2Public Financing Sources 501 The amount of public resources required to finance the Plan is UGX 276.878 trillion. It gradually increases from UGX 49.674 trillion in FY2020/21 and peaks to UGX 65.970 trillion in FY 2024/25, in the final year of implementation of the Plan (see Table 23.2). 222 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Table 23.2: Public Sector Costing FY2020/21-2024/25 Public Costing 2020/21 - 2024/25 Programme Total 2020/21 2021/22 2022/23 2023/24 2024/25 Agro-industrialisation 9,187 1,856 1,721 1,732 1,684 2,193 Mineral Development 2,938 692 515 651 524 555 Sustainable Development of Petroleum Resources 3,838 974 683 852 644 685 Tourism Development 3,609 617 613 731 774 874 Natural Resources, Environment, Climate Change, Land and Water Management 9,505 1,745 1,899 2,088 1,828 1,945 Private Sector Development 3,137 622 544 653 620 698 Manufacturing 2,871 592 481 594 577 627 Integrated Transport Infrastructure and Services 24,004 4,220 3,827 5,385 5,203 5,369 Energy Development 5,215 1,403 943 1,159 831 878 Digital Transformation 4,015 616 645 727 814 1,213 Sustainable Urbanisation and Housing 4,356 833 825 952 840 907 Human Capital Development 30,657 4,756 5,901 6,029 6,553 7,418 Innovation, Technology Development and Transfer 3,005 536 594 582 602 690 Community Mobilisation and Mindset Change 4,161 781 722 811 865 982 Governance and Security 39,268 7,646 6,951 7,435 8,052 9,184 Public Sector Transformation 20,281 3,334 3,476 3,847 4,158 5,467 Regional Development 22,013 4,059 3,889 4,228 4,486 5,351 Development Plan Implementation 10,573 1,960 1,883 1,916 1,926 2,888 Interest Payments Due 74,244 12,432 13,651 14,742 15,374 18,045 Total Budget 276,878 49,674 49,764 55,114 56,356 65,970 502 The main source of the public resources for financing the Plan will be tax revenue. Currently, tax revenue to GDP stands at 12.9 percent and it is projected to increase annually by 0.5 percentage points over the Plan period. This requires Government to prioritise the implementation of strategies that increase resources available to finance public investment as laid out in the Domestic Revenue Mobilisation Strategy (DRMS). Domestic revenue mobilisation is the only sustainable way to increase additional space for sustainable budget expenditures, foster national ownership and reduces dependency on external assistance.

23.2.1 — Domestic Revenue Mobilisation

23.2.1 Domestic Revenue Mobilisation 503 To strike a balance between growing the economy and raising more resources while also catering for the welfare of the poor, the following policy priorities and actions will be implemented: (i) Address non-compliance (a) Target large business non-compliance with stronger enforcement actions. URA will be empowered to carry out stronger enforcement actions, including the use of enhanced, risk- based techniques to target audit activities where the likelihood of under-declaration of income or failure to comply is perceived to be highest, for example with PAYE and Corporate Income Tax (CIT). (b) Link tax compliance with re-licensing of traders and service providers, expanding the withholding tax regime to capture evaders at the point of engagement with Government can improve compliance and bring in more revenue. Additionally, significant levels of under- declaration by professionals’ merit stronger investigative and enforcement action by URA. 223 NATIONAL PLANNING AUTHORITY (c) Support compliance and enhance revenues through sharper focus on registration, improved taxpayer services and education. This can be achieved by making it easier for Ugandans who are currently outside the tax system to become registered and active taxpayers; and more difficult for those who can afford to pay but are unwilling yet enjoying social services paid for by others. (d) Refine data access and internal data management through better ICT infrastructure for URA. This will require integrating Government data systems to support domestic revenue collections. (ii) Address Tax Policy and design Deficiencies (a) Strengthening Productivity of VAT: While VAT is one of the most important revenue sources, its productivity is comparatively low. This requires: (i) reviewing current VAT threshold and rate to ensure that together these minimize administrative and compliance costs, encourages small business growth and safeguards revenues; (ii) removing unnecessary VAT exemptions to curb unjustifiable revenue leakages while maintaining those that support Ugandan welfare and economic objectives; limiting the range of zero- rated supplies as far as possible; reviewing the policy on deeming to allow the VAT system to function normally; and ensuring that Government unequivocally honors its commitment to pay contractors on time since non-payment undermines the short-term VAT yield and has a negative impact on tax morale. (b) Renegotiate the various generous Corporate Income Tax (CIT) related treaty provisions especially the Double Tax Agreements (DTAs) to bring them in line with the Ugandan DTA policy. (c) Review Personal Income Tax (PIT) exemptions for public officials and expatriates as well as the PIT thresholds and bands to ensure that the tax system does not unfairly reduce disposable incomes. (d) In the spirit of growing the tax base through growing the small and medium enterprises, Government will review the current presumptive tax regime to encourage the growth and formalisation of SMEs. (e) While the Plan assumes minimum revenue streams from the oil and gas industry, Government will review the fiscal regime to fully capture revenue streams and the full value chain of the extractive and mining sector. Several features of a strong regime include: a royalty, to ensure government revenue from the time production commences; a CIT so that returns to equity are taxed in a similar way as other companies; and an additional tax to ensure the government obtains an increased share in economic rents of more profitable projects.

23.2.2 — Other Public Financing Strategies

23.2.2 Other Public Financing Strategies a) Development Assistance Grants 504 Grants will continue to support the financing of the Plan. In the period 2012/13-2017/18, the country received UGX 4.5trillion in grants alone both for budget and project support. Relations with the development partners will be strengthened considering mutual respect of national, regional and global interests in order to exploit further this existing financing 224 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 opportunity. Existing opportunities to tap into development assistance resources include the strategies for implementing SDGs, Africa Agenda 2063 and the integration of cross cutting issues like Climate change, HIV/AIDS, Family Planning, Refugees among others. For example, Climate Change and environment related financing often addresses key infrastructure sectors, such as water, energy, and forestry resources development. This Plan provides for developing capacity for the country to take advantage of these financing opportunities. During this period, the Government will setup a Joint Development Assistance Committee to work with the local development partners group with the objective to optimize development assistance flows into the implementation of the mainstreamed global development agenda. b) Oil and Oil Related Revenues 505 Since the oil and gas industry is under-going development, the country cannot reliably project to have substantial resources from the industry to support implementation of the Plan. Based on the current Oil and Gas Policy, oil related revenues will be included in the budget for investments after approval by Parliament. Building confidence of the investors in the oil sector and ensuring increased transparency and accountability in the management of sector resources will be prioritized to facilitate increased investment that creates a basis for the fast-tracked onset of oil revenues. c) Public Private Partnerships 506 A number of projects have been financed under PPP arrangements although at small scale and capacity for negotiation and structuring of PPP agreements has been developed. Over the NDPIII, PPPs will contribute significantly to the financing of prioritized interventions, especially in the infrastructure, health and education sectors where cost recovery is potentially high through self-financing of the projects. Increased capacity to negotiate, design and manage PPP projects continues to be a priority of this plan. d) South-South Cooperation 507 Cooperation between Uganda and other developing and emerging economies is critical to its development. For example, between 2000 and 2014, 91percent of Chinese support came in the form of loans (81percent) and grants (10percent) to support infrastructure development projects, some of which were core projects under NDPII. It is therefore important that South-South cooperation financing is directly relevant for the NDPIII financing envelope. Uganda will therefore consolidate its relationship with her South- South cooperation partners with a view to strengthening her ability to take advantage of existing and potential resource development opportunities. 23.3Public Debt Acquisition

23.3.1 — External and Domestic Debt

23.3.1 External and Domestic Debt 508 Over the recent years, the country has been obtaining its loan resources from multilateral (56.3 percent), bilateral (19 percent) and commercial sources (24.8 percent). Multilateral sources include regular international development assistance (IDA-regular) at 27 percent; 225 NATIONAL PLANNING AUTHORITY ADF (15.2 percent), and other multi-lateral sources (14.0 percent). Paris Club bilateral sources are majorly France (4.4 percent), United Kingdom (2.8 percent), and others (5.2 percent); while the non-Paris Club bilateral sources have been mainly China (6.6 percent) and Saudi Arabia (0.3 percent). Commercial sources on the other hand include China (14.7 percent), SCB (3.4 percent) and others (6.6 percent). 509 Concessional loans from multilateral creditors will continue to be an important source of financing for NDP III, averaging at 1.7 percent of GDP over the period as derived from the macroeconomic framework. Non-concessional and semi-concessional external borrowing will also be required given the ambition of the NDP III, and because concessional borrowing is not always available for all projects. Government will continue to ensure that for projects where concessional loans cannot be secured, semi-concessional loans are prioritised over non-concessional borrowing. 510 As already described in the macroeconomic strategy, Government will minimize its domestic borrowing to less than 1 percent of GDP over the Plan period. This is to avoid the effects of crowding out private sector financing and investment that are critical to the delivery of NDPIII. 23.4Private Financing Sources 511 The amount of private resources required to supplement public financing of the Plan is UGX 134.803 trillion which is 32.7 percent (Table 23.3). Nevertheless, private contribution is significantly high if recurrent costs are included. With available investment opportunities contained in the development programmes especially in integrated transport infrastructure and services, human capital development, agro-industrialisation, manufacturing and tourism among others, it is envisaged that private sector resources will be useful in leveraging the public resources available. Besides, substantial opportunities exist in the community mobilization programme most especially for the Civil Society Organizations as well as other non-state actors. 226 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Table 23.3: Private Sector Financing FY2020/21-2024/25 Private Sector Estimates 2020/21 - 2024/25 Programme Total 2020/21 2021/22 2022/23 2023/24 2024/25 Agro-industrialisation 9,468 2,086 1,716 1,699 1,676 2,291 Mineral Development 2,194 319 389 505 468 513 Sustainable Development of Petroleum Resources 2,517 364 463 590 524 577 Tourism Development 9,509 1,355 1,666 1,954 2,327 2,207 Natural Resources, Environment, Climate Change, Land and Water Management 2,397 519 414 449 455 559 Private Sector Development 4,449 724 762 913 944 1,107 Manufacturing 5,829 890 1,018 1,199 1,286 1,437 Integrated Transport Infrastructure and Services 26,472 3,988 4,270 6,120 5,741 6,354 Energy Development 2,965 419 571 710 605 661 Digital Transformation 11,850 1,776 1,795 1,990 2,394 3,894 Sustainable Urbanisation and Housing 2,886 533 516 584 591 661 Human Capital Development 24,012 5,408 4,456 4,138 4,592 5,418 Innovation, Technology Development and Transfer 2,156 391 385 401 431 548 Community Mobilisation and Mindset Change 14,824 2,252 2,543 2,899 3,303 3,827 Governance and Security 2,783 374 513 543 603 751 Public Sector Transformation - Regional Development 10,490 2,159 1,817 1,973 2,113 2,428 Development Plan Implementation - Interest Payments Due - Total Budget 134,803 23,557 23,295 26,666 28,052 33,233 512 The following will constitute the NDPIII financing sources and Government will work towards availing a conducive environment and support: (i) Domestic Private Investments (including Private savings, Cooperatives, SACCOs, and Retirement Funds) 513 Domestic private investment supported by private savings, cooperatives, SACCOs, and retirement funds will be instrumental in funding NDPIII priorities. Government will strengthen the fora where it interacts with the private sector to facilitate private investment in strategic sectors of the economy. This will be done through reducing overhead costs incurred before an investment decision is made e.g. by government conducting feasibility studies of projects in which the private sector is interested, giving tax incentives to entrepreneurs in strategic sectors, promoting cooperatives and SACCOs or divesting ownership in public companies to the private sector to free up resources to fund other public investments. (ii) Blended Finance 514 Blended finance, such as equity guarantees for energy and transport infrastructure, is another possible source of finance for implementing priorities under this plan. Efforts will be scaled up to explore opportunities for use of blended finance as well as joint financing of regional projects with our neighbouring countries. In addition, non-traditional financing sources like venture capital and collective investment vehicles will be developed further, including re-enforcing the existing regulatory framework. (iii) Foreign Direct Investment (FDI) 515 The projected FDI flows as already indicated in the external sector outlook will be on average 4.5 percent of GDP per year compared to 3.8 percent in NDPII period. Part of 227 NATIONAL PLANNING AUTHORITY these resources will be directed to NDP projects requiring PPPs. Uganda Investment Authority and the Ministry of Finance, Planning and Economic Development will play a key role in ensuring that investors are provided an appropriate investment environment and facilitate ease of doing business in Uganda. (iv) Private Remittances and Diaspora Resources 516 Whereas private remittances and transfers have in the past majorly supported household (consumptive) expenses, they are identified as a potential source of investment funds. Consequently, Government is developing modalities for redirecting the utilization of remittances to fund diaspora-focused investments through the issuance of bonds as well as interesting the diaspora in investing in key development projects. 517 Whereas remittances will initially be marginal in the initial years of the NDPIII, the finalization of the Diaspora Investment Strategy in the first year of the NDP will open the window for increased flows in the subsequent years. The Ministry of Finance, Planning and Economic Development, Uganda Investment Authority, Capital Markets Authority, Bank of Uganda and National Planning Authority, and the Ugandan Diaspora will play a key role in ensuring that this investment strategy is finalized and implemented. (v) NGOs/CSOs and Philanthropy 518 NGOs/CSOs and philanthropy finance a large number of projects, some of which are of a development nature. Specifically, NGOs receive and spend up to 1.4 percent of GDP annually. Therefore, government will amend the law under which NGOs/CSOs are registered to streamline the operations of these NGOs/CSOs to ensure that they only implement priorities articulated in this Plan. In addition, participation of NGOs/CSOs at national, sector and local government levels in annual planning will be strengthened to achieve this objective. 519 Overall, owing to the requirement of enormous resources for financing the development plan, an overall Integrated National Development Financing Framework (INFF) will be developed. This will further identify the magnitude of financing to be generated from all the various sources both private and public. 228 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 CHAPTER 24: RISK MANAGEMENT

24.1 — Introduction

24.1 Introduction 520 The Plan prioritizes increasing household income and improving the quality of life of the citizens. To achieve this overriding goal, clear objectives, corresponding programmes have been formulated and targets have been set. The Plan exploits the available opportunities within and outside the country that can be tapped into, however, these come along with risks that may impede the realization of intended results. Also, these risks are interconnected and systemic whose impact affects all the NDPIII Programmes. 521 The Plan acknowledges the need for risk informed development as a process and not an event. This is because there is a continuous interaction across local, regional and global risks including; terrorism, epidemics like the recent COVID-19 global pandemic, cybercrime, natural hazards and disasters, climate change, organized economic crimes and sabotage among others. 522 The risk management approach therefore adopted in the NDP is consistent with the Government of Uganda Risk Management Strategy 2018 whose main objective is to facilitate the integration of risk management into National Development Planning, Strategy formulation, annual planning and in all systems and processes.

24.2 — NDPIII Risk Profile

24.2 NDPIII Risk Profile 523 In the context of the NDP, risks are those events if they happen would cause harm, loss and or diminished opportunities and would likely adversely impact the achievement of the National Development Objectives as defined in the NDP. Successful execution of the NDP requires the identification, mitigation, and monitoring of these risks. These risks can be categorised as, operational, strategic, and external risks and are outlined below. i. External Risks: This category of risks cannot be typically reduced or avoided through the approaches or strategies used to for managing operational or strategic risks. External risks lie largely outside the Government control. Government focus for this category of risks is to identify them, assess their potential impact and figure out how best to mitigate their effects should they occur. These include: a. Natural disasters like, landslides, floods, earthquakes and insect infestations have costed the economy and impacted on the lives of the people. For example, the impact of flood, each year, in Uganda is estimated to be USD 62 million in GDP and impacting about 50,000 people. Also, between 2004 and 2013, droughts affected close to 2.4 million people and in 2010 caused an estimated loss and damage value of USD 1.2 billion, equivalent to 7.5 percent of Uganda’s 2010 GDP. Although these risks are generally predictable, their impact and timing are usually not. The effect of natural disasters is usually drastic and immediate. b. Geopolitics and armed conflicts in the region have had significant impact on Uganda’s economy. The country experienced slow growth of 4.5 percent in 2016 partly due to the unrest in South Sudan resulting in the decline of exports 229 NATIONAL PLANNING AUTHORITY by at least 72 percent, from USD 25 million to USD 7 million in the period from June to July 2016. c. Climate Change. Climate change has been manifested into rising temperatures, more erratic rainfall, and extreme weather events such as floods and drought. Climate change has the potential to reduce food production and the availability of potable water, with consequences for migration patterns, human and financial losses and levels of conflict. Uganda is vulnerable to the negative impacts of climate change. d. Epidemic and Pandemics such as COVID-19. Pandemics include elements of surprise and non-linearity. As with all complex risk events, significant underlying drivers - either unknown or underestimated – are exacerbating immediate and prolonged impacts. These include background conditions and contexts related to critical infrastructure placement, known but ignored vulnerabilities within and across key systems (including consumption drivers of high risk practices, for example in animal husbandry and ‘wet’ markets), and lack of redundancy in the quantity of limited systems (such as number of ventilators, number of ICU beds, number of ICU nurses and physicians). e. Terrorism that has a direct negative impact on foreign direct investment and tourism. Over the past two decades, the Terrorism Index for Uganda has averaged 4.61 from 2002 to 2018 reaching an all-time high of 6.09 in 2004 and a record low of 2.76 in 2013. However, in the recent years, the index has increased to 3.96 in 2018 from 3.93 in 2017. The Global Terrorism Index measures the direct and indirect impact of terrorism, including its effects on lives lost, injuries, property damage and the psychological aftereffects. ii. Strategic Risks: These are risks to the NDP that are a country assumes in pursuit of achieving superior growth and development objectives. Risks falling in this category include the following: a. Macroeconomic risks. The principal task of macroeconomic policy is to provide a stable and enabling platform upon which firms and individuals invest, work and consume. These risks include forex exchange risks, interest rates risks, inflation and volatility in the commodity prices. b. Public debt risks. Although the current public debt level remains sustainable, the current economic dynamics arising from the impact of COVID-19 pandemic are likely to see government’s public debt increase. Uganda’s risk rating has also deteriorated from low risk to moderate risk of debt distress. This downgrade is on account of the signiﬁcant increase in the present value of the public external debt compared to revenue from exports. The major risks to the outlook of external debt sustainability relate to poor performance of domestic revenue, low revenues from exports as well as an increased rate of debt accumulation, particularly on non-concessional terms. 230 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 c. Public investments risks. The potential risk involved in Public Investment Management (PIM) is the failure to achieve value for money (VFM). Although the country still has some room to scale up public investment through borrowing, great care should be taken to support projects with high rates of return. iii. Operational/Preventive Risks: These include the following: a. Market, urban school, household and bush fires. In addition to the droughts and floods, fire outbreaks follow in the 3rd place in destroying and damaging houses and businesses (markets, schools). Between 2008 and 2018, total fire incidents reported were 9,037; of which 130 relate to fire incidents in schools and 177 relating to shops, warehouses and markets. Property worth millions of shillings was lost in these fires and 546 deaths were reported. b. Post-election violence and byelections that have disrupted economic activities and extra expenditures on byelections. The previous election cycles posed macroeconomic instabilities that dampened economic activities and growth. This emanates from the post-election expectations formation and uncertainty among investors about the economy. c. Economic crime (Money Laundering; Cyber-attack; Corruption). Uganda’s incidence rate of economic crimes remains high at 66 percent above the continental and global incidence rates at 62 percent and 49 percent respectively. In Uganda, 24 percent of persons that experienced economic crime suffered a direct loss of between USD 100,000 and USD 1 million. Cybercrime incidence rate as well remain high at 31 percent in 2018, and therefore a major current and future threat to development. d. Land acquisition delays for NDPIII projects. Land related disputes have resulted in a 5-11 percent loss in agricultural production. Also, land acquisition delays have stalled and impeded the implementation of key NDPII projects resulting into immediate costs to government inform of idle equipment costs, penalties on non-utilized borrowed funds, and delayed realization of intended investment returns. 524 From the above, it can be seen that there are a number of potential risks that must be embedded throughout all the strategic and operational plans and workplans during the implementation of NDP. At the broad level, a brief analysis of the NDPIII envisaged risks is included in table 24.1. All MDAs will assess the potential risks and provide appropriate mitigation measures to manage the risk together with responsible actors are identified. 525 The risk assessemtn and analysis of the aforementioned and other potential risks for NDPIII is based on the key causes, the likelihood of occurrence and their expected impact on the realization of the NDPIII results. This is in accordance with the GoU Risk Management Strategy (RMS). 231 Table 24. 1: Key NDPIII envisaged risks (Low 1, Moderate 2, High 3; Minor 1, Moderate 2, Significant 3) Risk Risk category Root cause/factors (s) Assessment of inherent risk Risk response/Mitigation Lead No Risk Likelihood Impact Risk Rating 1 Natural External Risk 1. Destruction of 1. Strengthen MOH, MoES, Disasters e.g biodiversity emergency/Disaster Risk MGLSD, LGs, floods, 2. Cultural practices of Response (DRR) MoFPED, mudslides, bush burning 2. Utilise existing disaster BOU, drought), crime 3. adherence to fire safety coordination mechanisms Communities, (safety that lead standards for fire at regional level to inform IRA, LGs, to reduced disaster response MGLSD, household 3. Operationalise and UPDF, UPF, incomes and poor enhance disaster risk OPM, LGs, quality of life governance structures to Development manage disaster risk Partners 4. Strengthening of community-level awareness, preparedness 232 and response 5. Invest in climate change mitigation/green growth 6. Business Continuity Planning 7. Disaster Risk Financing 2 Epidemics and External Risk 1. Wet markets and 1. Global and regional MOH, MoES, Pandemics animals protocols agreed and MGLSD, LGs, 2. Globalisation where it signed by the MoFPED, is easy for airborne governments, to respond BOU, pathogens to travel the to global pandemic. Communities, globe at rapid speed 2. Utilise existing disaster IRA, LGs, through air travel, coordination mechanisms MGLSD, mail, and global at regional level to inform UPDF, UPF, commerce. pandemic /epidemic OPM, LGs, response Development Partners 232 NATIONAL PLANNING AUTHORITY Risk Risk category Root cause/factors (s) Assessment of inherent risk Risk response/Mitigation Lead No Risk Likelihood Impact Risk Rating 3. Business Continuity/Response Plans 4. Operationalise and enhance disaster risk governance structures to manage disaster risk and potential health- emergencies 5. Strengthening of community-level awareness, preparedness and response. 6. Disaster Risk Financing 7. Create/invest redundancies in systems 233 e.g in ICU equipment, Personal Protection Equipment (PPE’s) and Health care personnel 8. Strengthen core public health infrastructure, including water and sanitation systems 3 Political or Geo- External 1. Transnational or 1. Business continuity plans UPDF, CMI, THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Political Risks geopolitical risks, in that anticipate having to ISO and ESO, the broadest sense, arrange substitute EAC, IGAD, emerge when the suppliers and alternative UPF, MOFA interests of countries supply chains and Regional in defined policy 2. Engage with EAC and Security arenas collide, or IGAD to address the Agencies when the international security issues in the system at large is region undergoing a 3. Bilateral and international transformation. agreements for conflict Examples include resolution/peace building political conflict, trade 4. Increase transparency of wars, sanctions, retreat electoral processes from multilateral Risk Risk category Root cause/factors (s) Assessment of inherent risk Risk response/Mitigation Lead No Risk Likelihood Impact Risk Rating accords, social 5. Enhance the capacity of movements, military the Electoral Commission conflict and terrorism. to undertake peaceful and 2. National or country fair elections risks as a result of national political environment, the stability of the government and institutions emanating from post-election UPDF, CMI, events 3. Dissatisfaction with election outcomes 4 Terrorism Risks External 1. Emergency of various 1. High security and terrorist groups in citizens’ alertness at all ISO, ESO, UPF, 234 Congo, Somalia; times and citizens 2. Existence of porous 2. Strengthen security along borders (Of the 156 boarder lines; entry points, only 53 3. Strengthen internal and are gazetted boarders external intelligence (33 percent) and 103 4. Strengthen the capacity of ungazetted boarders. the immigration (67 percent) and of department to manage those gazetted many entry and exist of the have limited capacity country to fully man the entry points). 5 Macroeconomic Strategy Risk 1. Excessive borrowing 1. Prudent monetary and MoFPED, BoU, Risks (credit 2. Low economic activity fiscal policies CMA risk, domestic / output growth 2. Diversification in market price 3. Supply shock investments fluctuations, 4. Negative Trade exchange rate, balance policy shifts) 5. Uncontrolled population growth 6 Public Debt Strategy risk 1. Public debt is expected 1. Increase in domestic MoFPED, BoU, Risks. to rise on account of revenue mobilization to MDA.s NATIONAL PLANNING AUTHORITY increased borrowing to finance the Risk Risk category Root cause/factors (s) Assessment of inherent risk Risk response/Mitigation Lead No Risk Likelihood Impact Risk Rating finance Uganda’s budget/operationalise the development Domestic Revenue aspirations mainly in Mobilisation Strategy infrastructure. (DRMS) 2. The Global COVID-19 2. Reforms in Public pandemic has Investment Management increased the risk of 3. Development of the debt distress. integrated Bank of 3. Slow growth of exports Projects and and diversification strengthening institutional 4. Low tax revenues capacity in project management 5. Increase in domestic 4. Fast track the dev't and borrowing implementation of intergrated National Financing framework 7 Climatic External Risk 1. Human activity 1. Undertake Disaster OPM, MWE, Change induced 2. Global warming Planning of high-risk CSOs, Public, 235 risks (drought, 3. Natural causes areas LGs, MoFPED, flooding) 2. Provide contingence MLHUD financing 3. Enforce environmental management practices 4. Mainstreaming climate change into sector development plans, including translation of THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 key priorities into sector annual plans and budgets 5. Research to inform policy, planning and action on climate change in Uganda 7 Public Strategic Risk 1. Low domestic revenue 1. Improve project selection, MoFPED, Investment to finance budget appraisal and analysis. MDA’s and Risks 2. Weakness in project Rigorous assessment and LG’s selection, appraisal and prioritization of projects analysis 2. Increasing domestic 3. Corruption revenue mobilization 3. Operationalisation of the Public Private Partnership (PPP) 235 Risk Risk category Root cause/factors (s) Assessment of inherent risk Risk response/Mitigation Lead No Risk Likelihood Impact Risk Rating 8 Protectionism External risk 1. Rising unemployment 1. Strengthen Global and MoIA, MoFA, risks may increasingly tempt Regional Economic MEACA, governments to adopt Cooperation and MoTIC, restrictive trade policy collabouration such as MoFPED, OP measures COMESA, EAC and 2. Geo-politics SADC and WTO 3. Weaknesses in 2. Enhance stimulus/support bilateral and to local small and multilateral trade medium enterprises to agreements such as enhance resilience of World Trade businesses Organisation (WTO) 3. New technological 4. Pandemics that trigger innovations to reduce on in ward looking the global supply chains. approach 4. Business continuity plans that anticipate having to 236 arrange substitute suppliers and designate alternative manufacturing or retail sites. 9 Competitive External Risk 1. Emergency of 1. Expand international and risks disruptive technology regional bilateral trading 2. Radical strategic partners moves by 2. Business continuity plans multinational that anticipate having to companies and arrange substitute countries suppliers and designate alternative 3. Innovation programs 10 Cyber External Risk 1. National security 1. Awareness Security Crime/Attacks interests 2. Encryption and access agencies, NITA, 2. Business and financial control measures UCC, MDA’s interests 3. Business Continuity and LGs 3. Political and social Plans/Disaster Recovery interests Plans 4. Weaknesses in 4. IT systems integration cybersecurity governance and risk management NATIONAL PLANNING AUTHORITY Risk Risk category Root cause/factors (s) Assessment of inherent risk Risk response/Mitigation Lead No Risk Likelihood Impact Risk Rating 5. Proliferation of IT Systems across government 11 Critical Strategy an 1. Terrorism 1. Business MDA’s and National External Risks 2. Cyber- Continuity/Disaster LG’s; MoWE, Infrastructure attacks/terrorism Recovery Planning UNRA, UCC, (CNI) risks e,g 3. Climate 2. Awareness NWSC, power Change/Natural 3. Mainstream mitigation in UMEME, generation, disasters such as Sector and Entity NITA-U, telecommunicati floods, landslides, strategies and Investment MoFPED ons, water supply pandemics etc plans systems and computer systems 12 Global and External Risk 1. Global Demand and 1. Increase internal oil regional supply factors; reserves capacity 237 economic 2. Financial crisis 2. Expand international and shocks (price 3. Geo-politics regional bilateral trading fluctuations; oil partners prices, 3. Increase value addition on fluctuation of key locally produced commodity commodities prices;) 4. Maintain macroeconomic stability THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 13 Corruption Operational risk 1. Illicit acquisition of 1. Implement anti-corruption IG, DEI, OAG, wealth programmes Parliament, OP, 2. Weak Management 2. Enhance anti-money State House, Information Systems laundering surveillance Anti-Corruption Security and audit systems. CSOs, Citizens, 3. Weak enforcement of 3. Continue interfacing FIA, BOU, Anti-corruption laws different e-government Commercial 4. Weaknesses in the systems (banking, land Banks, URA, governance structures and tax MIS). MOLHUD 14 Inability to 1. Non-Alignment of 1. Ensure 80 percent budget MoFPED, appropriately budgets to the Plan alignment to the NDP Parliament allocate limited 237 Risk Risk category Root cause/factors (s) Assessment of inherent risk Risk response/Mitigation Lead No Risk Likelihood Impact Risk Rating resources to key 2. Supplementary 2. Ring fence (protect) Plan priorities budgets which have a development expenditure direct effect on from supplementary development budgets expenditure 3. Financing of 3. Minimize emergency unplanned activities /unplanned spending beyond the beyond contingency fund contingency fund allocations 238 NATIONAL PLANNING AUTHORITY 238 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

24.3 — General Interventions for Risk Management

24.3 General Interventions for Risk Management 526 In order to effectively manage the identified risks so to achieve the NDPIII planned results, government with relevant stakeholders shall undertake the following: i) All Sectors, MDAs, local government plans shall integrate risk management. This will be informed by an elaborate risk analysis and corresponding proofing of investments prone to risks. NPA shall assess the extent of integration of risk management during the formulation and implementation of the plans. ii) Institutionalize and enhance capacities in risk management at all levels including national, sectors, MDAs, and local governments. iii) Develop baseline data to facilitate progress tracking of risk management indicators. In addition, government shall document risk events and accompanying losses in lives, livelihoods and health and in the economic, physical, social, cultural and environmental assets of persons, businesses, communities iv) Strengthen reporting on risk management practices and enhance documentation and sharing information v) In line with the Uganda Risk Management Strategy (RMS) 2018, operationalise the risk implementation plan 239 NATIONAL PLANNING AUTHORITY CHAPTER 25: MONITORING AND EVALUATION

25.1 — Introduction

25.1 Introduction 527 The Monitoring and Evaluation (M&E) strategy for the Plan is informed by the achievements, challenges and lessons learnt from the NDPI End Evaluation and NDPII Mid-term Review (MTR). The strategy articulates the NDPIII M&E reforms, the roles and responsibilities of stakeholders, reporting and dissemination mechanisms, processes, required M&E capacities and events. It also includes the results framework that will guide the data collection, analysis and reporting and information needed to assess implementation progress towards the realization of the NDPIII development goal and objectives. 528 The overall objective of the M&E Strategy is to support sectors, MDAs, LGs and other stakeholders in undertaking monitoring and evaluation of the . NDPIII The M&E strategy will guide generation of data for: (i) evidence-based planning; (ii)accountability; (iii) monitoring and evaluating of policies, programmes and projects; (iv)institutional learning through data utilization and sharing; and (v) decision making through measuring the performance, outcome and impact of development interventions. 529 In order to avoid over-laps, role conflicts, and uncertainty in the M&E function during the NDPIII implementation, the specific roles and responsibilities of key actors have been detailed in the M&E strategy in addition to the institutional mandates. Key institutions with a role in M&E include: Parliament, Presidency, Cabinet, OPM, NPA, MoFPED, UBOS, MDAs, LGs and Non-State Actors. 530 The Presidency through the Office of the President (OP) shall be responsible for the overall oversight of the Plan. OP shall provide overall leadership in Public Policy Management and promotion of good governance practices. The newly established Apex platform will provide a forum for State and Non-State actors to contribute to the implementation architecture of government. It will be the oversight responsibility of the Presidency to ensure coherence, transparency and management for results over the NDP period. The Presidency shall be responsible for all the recommendations made to improve effectiveness and achievement of desired results. 531 The Parliament shall be responsible for programme oversight, independent monitoring and evaluation of the budget to inform resource utilisation. Parliament shall enact necessary legislation to facilitate effective implementation of the Plan. It will be the responsibility of Parliament to scrutinise the budgets for implementation of this Plan, guide the alignment of resources to the planned priorities and manage budget compliance to the Plan. Parliament through its oversight function shall foster good governance and consistency of the budget management to the Plan and guarantee value for money through enforcing the recommendations of the Auditor General’s reports. 240 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 532 OPM shall oversee the coordination and implementation of the Plan. OPM is responsible for developing an M&E and Co-ordination framework for MDAs and LGs for performance assessment. OPM will coordinate implementation monitoring and conduct performance evaluations including commissioning joint evaluations by, and/or with MDAs to guarantee effective implementation. OPM shall coordinate the development and management of theMISs. The Delivery Unit under OPM shall be reviewed and strengthened to make it more effective in-service delivery through addressing implementation constraints to fast track government projects and programmes. 533 Ministry of Finance, Planning and Economic Development shall conduct budget monitoring in line with the Plan, resource allocation in the Charter of Accounts. MFPED shall assess compliance of projects under the Integrated Bank of Projects system inline with the Plan. 534 NPA shall assess the implementation progress of the Plan at the strategic level through annual, mid-term and end programme results (Outcome and Impact) assessments, Certificate of Budget compliance to NDP and the annual National Development Report that is laid on the floor of Parliament. NPA will develop baselines and review the performance of the Plan in partnership with UBOS and other stakeholders. Also, in partnership with the private sector and CSOs will continue to undertake impact evaluation for both policies and programmes on delivery of services critical to the delivery of the Plan especially those that form the evaluation agenda as prescribed by Cabinet. Further, in partnership with OPM and UBOS shall coordinate the development and review of the MDAs and LGs on performance indicators and targets by programme. In addition, NPA in partnership with UBOS shall be responsible for reporting the manpower, skills and employment status. 535 MDAs/LGs shall undertake M&E activities based on their strategic and development plans. The M&E reports will form part of the secondary data information required by OPM, NPA, SWGs and other stakeholders. MDAs/LGs shall be responsible for ensuring that the M&E units are functional. In addition, MDAs/LGs shall produce mandatory reports.

25.2 — The NDPIII M&E Reforms

25.2 The NDPIII M&E Reforms 536 The NDPIII M&E reforms include; a) Automated and integrated NDP M&E system: Government of Uganda is developing an integrated Web based performance monitoring system that will provide an interface with the PBS and IFMIS. Its operationalization will entail strengthening MDA and LG MISs and capacity to generate NDP periodic progress reports. b) M&E institutional architecture: 241 NATIONAL PLANNING AUTHORITY (i) Creation of an Executive Oversight Platform for uptake, learning and utilization of results for evidence-based decision making (Apex Platform). This policy reform will strengthen effective public policy management and promotion of good governance and accountability practices. The platform will act as a convener for five government institutions that include; Office of the President, Office of the Prime Minister, Ministry of Finance, Planning and Economic Development, and National Planning Authority, Ministry of Local Government through an annual NDP forum chaired by H.E the President. It will introduce a framework through which the non-state actors can contribute to the implementation architecture of government that feeds into the APEX Platform. The APEX will receive reports on the progress of implementation of the NDP through the OPM, MoFPED, NPA, and UBOS for cabinet discussion (ii) Establishment of programme coordinators. The Office of the Prime Minister (OPM) will be responsible for coordination of the different sectors of the programme and follow up of the implementation of the Plan. The capacity of OPM shall be strengthened to coordinate the NDP M&E framework for the 18 programmes. OPM will be strengthened with at least 18 additional M&E specialists and 18 programme coordinators. For effective implementation of the Plan and M&E system, the Directorate of M&E and the Prime Minister’s Delivery Unit will be adequately resourced and empowered to deliver on the OPM function with respect to the Plan. Coordinating the implementation of the programmes will be carried out in close collaboration/partnership with NPA, MoFPED, UBOS and Sector Working Groups (SWGs) who will receive Sector/MDA and District NDPIII annual implementation review reports that will be informed by Baraza reports coordinated by RDCs and the Parish Development Committee review reports. Overall, the OPM will be the main channel for the flow of public sector information and reports from MDAs and districts through SWGs. c) Annual Programme Reviews. The sectors shall continue to undertake reviews before OPM commences preparation of the programme performance report – GAPR. OPM shall revise the sector review guidelines to define the content, frequency, reporting, action follow up, coordination in producing the reviews, and uptake of the GAPR recommendations in collabouration with MoFPED. As part of the administrative and policy measures, NPA and MFPED through PCC and BCC, respectively shall require sectors to undertake annual reviews within the stipulated time. 242 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Figure 25.1: Programme Implementation Architecture d) Enforce service and service delivery standards to provide a benchmark for monitoring. This will standardize service delivery and increase efficiency and effectiveness with which public services are delivered. All service delivery units will have service and service delivery standards in the NDPIII period given the priority to attain a middle-income status. e) Operationalise and strengthen functionality of the M&E and statistical units within thePlanning departments. OPM, MoFPED, NPA, UBOS and MoPS shall implement the provisions of the National Evaluations Policy on operationalisation of M&E and statistical units with in the Planning departments in MDAs and LGs. f) Strengthen inspection and supervision function for M&E. The Ministry of Public Service(MoPS) in collaboration with OP, OPM, MoLG, MoES, MoH and other stakeholders willreview the financing and implementation mechanism, human resource, and follow up of inspection and supervision of the implementation of the Plan. g) Promote the Partnership Policy. OPM will promote the partnership policy among the several players to align their activities for the effective implementation of the Plan. The programme 243 243 NATIONAL PLANNING AUTHORITY approach has necessitated the reorganisation and restructuring of the way partners relate with government. Therefore, the partnership policy will guide the reorganisation and functioning of the government arrangement with partners. In addition, NPA will promote the partnership with the private sector and civil society in the evaluation of Government performance.

25.3 — M&E Events and Key Actors

25.3 M&E Events and Key Actors 537 M&E events shall be organized by different actors to provide progress on the implementation of the Plan. The outputs from these events shall be produced timely and sequentially so that they can inform the planning and budgeting of the Plan 538 The M&E events and processes are summarized in Table 25.2. Table . 25.2 : Main M&E Events Main M&E Purpose and Description Output Lead Other Key Time frame Events Agency Actors Annual APEX Overall review for results - High level Synthesised OP OPM, MOFPED, Annual NDP Forum Oversight Programme NPA and Monitoring report - Executive Policy Decision report - Status report on the implementation of recommendations - Recommendation reports - Programme Spot Inspection reports Government Internal review of - GAPR and GHAPR OPM Cabinet, MDAs, Semi-Annual Annual implementation of - Local Government LGs and Annual Performance Government policies, Annual Performance Review projects and programmes Report Government Profile of evaluations - Policy and programme OPM NPA, OPM Annual Evaluation approved by Cabinet and Evaluations Agenda policy and programme evaluations from MDAs Alignment of Issue Planning Call - Certificate of NPA MFPED, OPM, Call Plans, BFPs Circulars to support Compliance Districts, Sub- Circular: and budgets to alignment of Plans, BFPs - Planning Call Circular counties, MDAs July every the NDPIII and budgets to the NDPIII: year; Issue guidelines to support alignment of SDPs/LGDPs Meetings for and BFPs to the Plan at planners: sector, MDA and LG annually levels; and organize annual meetings for planners and budget officers to quality assure BFPs and budgets. Budgeting and Issue Budget Call Circulars - Budget call circulars MFPED MFPED, OPM, Annual Financial to commence the budget - Financial Monitoring NPA, Districts, monitoring preparation process Reports Sub-counties, MDAs 244 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Main M&E Purpose and Description Output Lead Other Key Time frame Events Agency Actors Monitoring, Assessment of compliance - Project Concept note OPM, MFPED, OPM, Annually Coordination to the M&E guidelines on - Public Investment Plan MDAs NPA, PSFU, and Evaluation project identification - Project progress reports and LGs Academia, PIP along the Technical Project Cycle Committee Researchers, CSOs, and Politicians Statistics Basis for a before, midterm Survey, statistical abstracts UBOS OPM, NPA, Annually Production and and end line assessment of and census reports MFPED, other use in the NDP the NDP progress MDAs as well as implementatio LGs n Evaluative Assess the effectiveness, Evaluation reports OPM, EPRC, MDAs, Continuous studies relevance and intermediate NPA, Civil Society & and final outcomes based MFPED, LGs on Cabinet and policy and other programme evaluations MDAs as from MDAs well as LGs Programme Assess programme and - Programme and sector PWGs, NPA, private Annually and Sector sector performance, Annual Review Reports SWGs, sector players, Annual identify challenges and - Annual National NPA, Researchers, Reviews solutions Development Report MDAs/ CSOs, and Independe members of nt Parliament Consultan ts NDPIII/Project Assess mid-term progress NDP progress reports NPA MDAs, MFPED, January-June Mid-Term of NDPIII and projects and OPM, LGs, 2023 Review programmes to ensure private sector, consistency of CSOs, academia, implementation with development overall focus and objectives partners, researchers, Parliament NDPIII and To determine effectiveness, Project Evaluation reports OPM, MDAs, July- Projects ex- relevance, sustainability NPA, development December post and intermediate and final MFPED, partners, Private 2020 for evaluations outcomes of the NDPIII other Sector, CSOs, NDPIII projects and programmes MDAs as Researchers, well as general public LGs Impact Assess intended and Impact Evaluation reports NPA MDAs, Every Two Evaluations unintended negative and development years positive consequences of partners, Private after the end the NDP including its Sector, CSOs, of Plan projects and programmes Researchers, general public 245 NATIONAL PLANNING AUTHORITY

25.4 — Performance Reporting and Dissemination of Results

25.4 Performance Reporting and Dissemination of Results 539 The performance monitoring reports that will be produced and disseminated at various levels are outlined in the sections below.

25.4.1 — Economy-Wide Reports

25.4.1 Economy-Wide Reports (a) Certificate of Compliance 540 Alignment of Plans (5-year SDPs and LGDPs and annual BFPs) and the budgets to the NDPIII will be confirmed through issuance of Certificates of Compliance by NPA toMDAs, LGs, and MoFPED. The certification report on the compliance of plans and budgets to NDP will be based on a criteria, developed by NPA and agreed withParliament, and is sued onthe 1st April of everyear. The Certificate of compliance will inaddition provide an assessmentof expenditure performance against the Plan. (b) National Development Report (NDR) 541 Timely production of National Development Reports (NDRs) has since been hampered by the existence of the manual M&E framework and this is to be solved by the introduction of a web based NDP M&E system. To this end, a series of NDRs for the NDPIII will be produced annually by NPA and submitted to Parliament, as required by the NPA Act (2002). The NDR provides a review of the progress made towards achievement of NDP goals, objectives, programmes and corresponding targets. The report will contain an assessment of the development performance of the economy, including the contribution of the public and private sectors, as well as other non-state actors. The NDR will serve as the main monitoring and evaluation annual feedback from the Authority to stakeholders. (c) Government Annual and Half Annual Performance Reports (GAPR & GHAPR) 542 These reports will continue to be produced annually and semi-annually by OPM to facilitate internal review of Government performance by Cabinet. The reports provide analysis of the performance of sectors, and MDAs against the national budgetary resource allocations. They will be largely focused on assessing progress on interventions that are aimed at achieving planned NDPIII programme results. As before, the GAPR and GHAPR will continue to be disseminated through the Cabinet retreat. (d) Annual Budget Performance Report (ABPR) 543 MoFPED will continue to produce the Annual Budget Performance Report which provides information on the performance of the National Budget against the annual plans. In particular, the report provides analyses of the revenue and expenditure, including sectoral and LG financial and physical performance. The report is disseminated to MDAs and LGs during the national and regional budget conferences, as a key feedback to inform the next budgeting process. (e) Manpower, skills and Employment Status Report 544 To keep track of the number of jobs created, skills developed and skills required in the short and medium term, a National Employment and Skills development report shall be produced 246 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 and disseminated after every two years. In this regard, UBOS will develop a more comprehensive employment and labour statistics data base to facilitate reporting on employment and skills development status. NPA will take leadership of the production of the report and will work with key stakeholders such as UBOS, EPRC, MoGLSD, MoES, UIA, and PSFU.

25.4.2 — Sector level reports

25.4.2 Sector level reports a. Annual Sector Performance Reports 545 During NDPII implementation, not all sectors have been able to produce annual sector performance reports as planned. However, most of the sectors held joint sector review meetings to assess progress, the output being workshop reports. All sectors will therefore be required to produce annual sector performance reports which will be a key performance review reference during finalization of the subsequent financial year’s BFPs and budget appropriation by Parliament. Data for production of the reports will be based on management information system reports. All sectors will be required to produce and disseminate the report by October of every year. b. Quarterly Sector Performance Reports 546 Quarterly sector performance reports are currently produced by MDAs and LGs to provide information on the utilization of funds for the preceding quarter. The reports are mainly used by MoFPED and OPM to support the work-plans and justification for release of funds. The reports are currently based on the Programme Based System (PBS) and will be strengthened during NDPIII to relate to the sector MIS’ and the NDPIII output and outcome indicators.

25.4.3 — Local Government level reports

25.4.3 Local Government level reports 547 LGs will produce reports that will be structured to focus on progress of NDPIII and SDP implementation by local governments. There is no LG that produces an annual performance report. Currently, local governments produce annual budget performance reports which are submitted to the Ministry of Finance, Planning and Economic Development. LGs will therefore produce reports that will be structured to focus on progress of NDPIII and SDP implementation by local governments. In addition, district MIS’ will be strengthened as it will be linked to the Web based NDP M&E system to provide data for preparation of the reports.

25.5 — M&E Processes

25.5 M&E Processes 548 The processes for NDPIII M&E will comprise the key tasks outlined in the sections below. (a) Operationalising the NDPIII M&E Systems 247 NATIONAL PLANNING AUTHORITY 549 This will involve putting in place and strengthening the necessary institutional frameworks and human resource capacities to undertake the identified M&E processes. In particular, all MDAs will have functional MISs that will feed the integrated Web based NDP M&E system. OPM will be strengthened to be able to coordinate all the 18 NDPIII programmes and this will among others include recruiting staff to take lead on these programmes. The PBS and IFMIS will have indicators and targets emanating from the NDPIII results framework to foster alignment. (b) NDPIII M&E Stakeholders Participation 550 Stakeholder participation will be based on the NDPIII M&E institutional framework and arrangements. This will, therefore, be strengthened in line with the M&E reforms. In line with the NDPIII development plan programme, the M&E function at all levels will be strengthened including at Cabinet, Sector and local government levels to facilitate effective participation of stakeholders. 25.6Capacity Building 551 During the NDPIII, M&E capacity will continue to be strengthened for both public and private actors at all levels. As part of this strategy, OPM working together with NPA will prepare a detailed training plan for all key stakeholders. The training plan will be aimed at building a critical mass of civil servants to undertake M&E along the Public Investment Management (PIM) cycle. In addition, MDAs and local governments will be required to allocate more funds to M&E departments to enable them deploy adequate human, material and financial resources for quality and useful M&E. The key institutions targeted for M&E capacity building include: The Parliament of Uganda; National Planning Authority; Office of the Prime Minister; Ministry of Finance, Planning and Economic Development; NGO Forum and Other Umbrella Civil Society Organizations; Ministry of Local Government; other Ministries, Departments and Agencies; and Local Governments. 25.7NDPIII Results Framework 552 The Result Framework will be used to measure and assess progress during implementation of this Plan and a tool for compliance assessment as required under Section 13(7) of Public Finance Management Act, 2015. 553 The detailed NDPIII results framework which is an annex to the Plan focusing on measurement of results at the national aggregate (macro), programme and decentralized level. It therefore includes indicators for the NDPIII Goal, objectives, programme and sub programme level outcomes and outputs (Figure 25.2). The results framework is, divided into indicators for: (i) Higher/Executive level; (ii) Programme and (iii) Sector/sub programme level. The programme and sub programme outcomes and output indicators derived from the NDP culminate into the outcome and impact indicators articulated in the higher-level results framework. The results framework has as well taken care of the 248 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 SDGs, Agenda 2063, EAC Vision 2050, Human Rights, Gender, IPOA, Green Growth indicators and targets. This results framework shows how the achievement of lower 0level objectives and interventions by LGs and MDAs leads to the achievement of the overall goal of the Plan. Figure 25. 1: NDP Results framework 554 The programme level results framework is attached in Annex 5. 249 NATIONAL PLANNING AUTHORITY CHAPTER 26: NATIONAL STATISTICAL SYSTEM 555 Statistics is recognized as a national and international “public good”. Therefore, development and maintenance of the National Statistical System (NSS) to ensure collection, management, analysis and dissemination of integrated, relevant, reliable and timely statistical data and information for development planning is critical. In the post-2015 development era, the need for data and information will go beyond what the NSS is currently able to provide. This will require galvanization of all stakeholders including data users and producers (in public, private and civil society sectors), data suppliers (households, establishments and institutions) as well as research and training institutions. 556 In a programmatic approach that requires focus on results, the statistical requirements of NDPIII will be immense. The programmatic approach will require annual monitoring of results, this will have implications for statistical systems. Uganda’s National Statistical System should be re-oriented towards the production of high-frequency statistics (e.g. annual, quarterly, monthly, daily statistics) instead of low frequency statistics (e.g. periodic survey statistics and censuses). This is because high-frequency data provides a high-degree of precision and helps to reflect and intervene upon real-time intermittent changes that may not be reflected in seemingly longer low frequency survey series and censuses. 557 Statistical production should be aligned to the NDPIII requirements. Results monitoring and evaluation is best done when statistics production is in alignment with the requisite NDPIII requirements. Therefore, Uganda’s National Statistical System should be re-oriented towards the production of statistics that the NDPIII requires. 558 The main thrust for the development and maintenance of Uganda’s NSS in the NDPIII is to transform and modernize national statistical governance, infrastructure, systems and capacities so that the statistical system can respond more effectively to current and future data needs at various levels – national, regional, continental and global. In particular, this thrust will ensure production of quality statistical data and information for monitoring and evaluating the performance of NDPIII and associated reporting on development progress. 559 The demand for quality statistics in Uganda has grown tremendously over the last 10 years. This has been driven by: socio-economic changes; new reporting requirements in line with programme-based planning and budgeting; and reporting progress on SDGs, Africa Agenda 2063 and EAC Vision 2050. In addition, a programmatic approach that requires focus on results, implies the statistical requirements of NDPIII will be immense. There is therefore a need to re-orient the NSS towards production of high-frequency statistics and statistical production aligned to the NDPIII requirements. 560 NDPIII Statistical requirements necessitate the adoption and intensification of non- traditional data sources including, big data, data science, geospatial technologies and block-chain among others. These data methods and approaches help to obtain both large volumes of structured and unstructured data so as to understand underlying insights and 250 250 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 patterns critical for policy and development. The data produced is also of high velocity, variety, variability and quality of data beyond the traditional sources. Importantly also, gathering, storing and dissemination/access to such very large volume of data is only possible with a substantially upgraded data IT infrastructure in Uganda. These modern data methods benefit businesses, industries, the job markets among others. Also, innovative technologies including Computer Aided Personal Interviews (CAPI) should be rolled out across the NSS. 561 Administrative data systems should be developed and leveraged for timely data at all levels (Central, MDA and Local Government levels) to enable tracking of results across the different programme players, in line with the NDPIII Programmatic Approach. The production and compilation of administrative data should be further developed at the sectoral, regional and local government (district) level. Additionally, data critical to cross-cutting issues like gender and refugees should also be collected at these levels. UBOS in conjunction with the relevant MDAs, Local Governments and academia should therefore work out a framework that standardizes the data from different administrative units through statistical rules, regulations and instruments 562 During the NDP III reporting period, it is envisaged that there will be full implementation of the PNSD III. The specific targets during the period are: (i) Development of administrative data value chain in MDAs and LGs; (ii) Improvement in statistical Infrastructure (Human, Financial, IT infrastructure) in the NSS; (iii) Increased statistical production and spatial data dissemination for the NDP III; (iv) The Statistics Common Cadre mainstreamed in the structures of MDAs and LGs; (v) Development and implementation of Strategic Plans for Statistics for all MDAs and LGs; (vi) Full implementation of the Long-term Census and Survey plan; (vii) Updated National Standard Indicator framework; and (viii) Attainment of the World Bank Statistical Capacity Index score (WBSCI) for Uganda from 74.4 to 80 percent. 563 Government data systems will be key for NDPIII. Data systems from birth certificates, passports, national IDs, driving permits, tax purposes, security, and other transactions need to be integrated for policy purposes. This will leverage the role of data in development. 564 The objectives of the NSS are: 1. Strengthening development, production and dissemination of quality statistics. This is to be achieved through: broadening the scope and coverage of statistical information generated by the NSS; ensuring statistics generated in the NSS meet user needs; and enhancing efficiency and effectiveness of statistical production processes. 2. Strengthening coordination, cooperation and partnerships in the NSS. This is to be achieved through strengthening coordination of the NSS and building collabourative partnerships in the production of statistics. 251 NATIONAL PLANNING AUTHORITY 3. Promoting standardization in the collection, collation, analysis and publication of statistics. This is to be achieved through promoting adherence to international statistical standards, guidelines and methodologies; and development and implementation of the NSS Statistical Quality Assurance and Certification Framework. 4. Capacity development and technical support for statistics producers, providers and users. This is to be achieved through strengthening the statistical capacity of the workforce within the NSS and providing technical support to producers and users of statistics. 5. Scale up data uptake and impact. This is to be achieved through promoting data use culture and expanding choices for data use. 565 The aspects of statistical development have been incorporated in the NDPIII under various programmes including Public Sector Transformation, Plan Implementation as well as the M&E section. 252 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 ANNEXES

Annex 1: Mapping of the global, continental and regional development frameworks. — Mapping of the global, continental and regional development frameworks

Annex 1: Mapping of the global, continental and regional development frameworks. AND SDG AA2063 (PA – Priority Area) EAC 2050 SDG: Goal 1 – PA: Incomes; poverty and Socio-Economic 1,2, inequality Indicators: Poverty; 3,4,5, 6, Goal 4 - Sustainable and inclusive Income Distribution 8,10 economic growth (Gini Co-efficient) SDG AA2063: (PA – Priority Area) EAC 2050 SDG: 2, Goal 4 - PA 4.2: STI driven Goal: Agricultural 9, 12 manufacturing/ industrialization, production and Target b productivity, GOAL: Goal 5: Modern agriculture Leveraging industrialization (Agro- processing industry) SDG: 9, Goal 4 - PA 4.2: STI driven GOAL: Leveraging 9.2 manufacturing/ industrialisation industrialization SDG: 12 Goal 7 - PA 7.1 Sustainable (Extractive Industries consumption patterns SDG: 9, Goal 4 - PA 4.2: STI driven GOAL: Leveraging 9.2 manufacturing/ industrialization industrialization SDG: 12 Goal 7 - PA 7.1 Sustainable consumption patterns SDG 8, Goal 4: PA 4.4: Hospitality/tourism Goal: Enhance tourism, 8.9 trade in goods and other services within the EAC region and with the rest of the world. SDG: 8, Goal 4 – PA 4.2: STI driven GOAL: Leveraging SDG: 9, manufacturing/industrialisation industrialization 9.3 Growth of SMEs (Industrial Development and SMEs) SDG: 7, Goal 4 – PA 4.2: STI driven GOAL: Leveraging 8, 9, 12, manufacturing/industrialisation industrialization 13 Growth of SMEs (Industrial Development and SMEs) SDG: Goal 4 – PA 4.2: STI driven GOAL: Improved 17, 17.6 manufacturing access to affordable and efficient Regional transport, energy and communication network SDG 7 Goal 7- PA 7.5 Renewable energy GOAL: Improved SDG: 12 Goal 1: PA 1.4 Modern and liveable access to affordable and habitats (electricity) efficient Regional Goal 7 – PA 7.1 Sustainable transport, energy and consumption patterns communication network SDG 9 Goal: 10 GOAL: Improved SDG: 12 Goal: 4 access to affordable and Goal 6 – PA 6.2 Port Operations efficient Regional transport, energy and communication network 253 NATIONAL PLANNING AUTHORITY SDG:9, Goal 10 GOAL: Improved access to affordable and efficient Regional transport, energy and communication network Goal 1 – PA 1.4: Modern and livable Cross-cutting issue: habitats Cities of the Future and Human Settlements Goal: 2,3, and 1 (PA 1.3: Social Enabler: Education, 3,4,6 protection) Health SDG: Goal 1: PA 1.4 Modern and livable 5,8,10 habitats (water and sanitation) Goal 17: Full gender equality Cross-cutting issue: Goal 18: Engaged and empowered Gender, Women and youth and children Youth Empowerment Goal 1: Modern and Livable Habitats GOAL: Sustainable 12, 13, and Basic Quality Services (Water utilisation of natural and Sanitation) resources, environment Goal 7: Environmentally sustainable management and climate resilient economies conservation with enhanced value addition. Goal 12 – Institutions and Cross-cutting issue: 16, 17 transformative leadership Management framework and Policies SDG: Goal 16: African Cultural Culture and Sports: 16, 16.7, Renaissance is pre-eminent culture and creative Goal 12 – PA 12.2: Participatory industry, EAC Culture dev’t and local governance fund, EAC Cultural identity Goal 11: Democracy and governance, GOAL: Democratic HR and rule of law values, human rights, Goal 13: Peace, security, and stability access to justice and the are preserved rule of law Goal 14: A stable and peaceful Africa Goal: A Peaceful and Goal 15: A fully functional and Secure East Africa operational African peace and security architecture Goal 12: Institutions and Cross-cutting issue: 16, 17 transformative leadership Management Goal 20: Goal 20: Africa takes full framework and Policies responsibility for financing her development SDG: 1, Goal 1: Goal 1 – PA: Incomes; Socio-Economic 1.2 poverty and inequality Indicators: Poverty; SDG: 2, Goal 5: Modern agriculture Income Distribution (Gini Co-efficient) SDG: 8, Goal: Agricultural production and productivity 254 PLAN (NDPIII) 2020/21 - 2024/25

Annex 2: Matching bottlenecks to Africa’s socioeconomic development to NDPIII — Matching bottlenecks to Africa’s socioeconomic development to NDPIII strategies

Annex 2: Matching bottlenecks to Africa’s socioeconomic development to NDPIII strategies and national programs No Bottleneck NDPIII Strategy NDPIII National Program 1 Ideological 1. Promote a development- oriented mindset 1. Community Mobilization and Disorientation mindset change 2 Interference with the 1. Provide suitable, fiscal, monetary and 1. Private sector development private sector regulatory environment for the private sector 2. Manufacturing to invest 3. Digital transformation 2. Increase local content participation 3 Underdeveloped 1. Institutionalize infrastructure maintenance 1. Integrated transport infrastructure Infrastructure 2. Develop inter model transport infrastructure and services 3. Increase access to reliable and affordable 2. Sustainable energy development power 3. Sustainable urbanization and 4. Leverage urbanization for social economic housing transformation 4 Weak States (esp. 1. Increase Government’s participation in 1. Governance and security army, police, judiciary strategic sectors 2. Public sector transformation etc) 2. Enhance partnerships with non-state actors for 3. Development plan effective service delivery implementation 5 Fragmented markets, 1. Promote export-oriented growth 1. Agro-industrialization market access and 2. Develop inter model transport infrastructure 2. Mineral based industrialization expansion (Issues of regional integration have been dealt program with in the EAC/AfCFTA protocols) 3. Sustainable petroleum development 4. Tourism development 5. Integrated transport infrastructure and services 6 Lack of 1. Promote Agro-industrialization 1. Agro-industrialization Industrialization and 2. Increase local manufacturing 2. Mineral development Low Value Addition 3. Increase government participation in strategic 3. Sustainable petroleum sectors development 4. Promote mineral based industrialization 4. Manufacturing 5. Harness tourism potential 5. Tourism Development 6. Innovation, technology development and transfer 7 Under-development of 1. Improve access and quality of social services 1. Human Capital Development Human Resources 2. Institutionalize human resource planning 2. Community mobilization and 3. Enhance skills development and vocational mindset change training 3. Innovation, technology 4. Increase access to social protection development and transfer 8 Under-development of 1. Promote Agro-industrialization 1. Agro-industrialization agriculture 2. Promote export-oriented growth 2. Innovation, technology development and transfer 9 Under-development of 1. Provide suitable, fiscal, monetary and 1. Development Plan the services sector regulatory environment for the private sector Implementation (banking, Insurance to invest 2. Private Sector Development Tourism) 2. Private sector development 3. Tourism Development 255 255 NATIONAL PLANNING AUTHORITY No Bottleneck NDPIII Strategy NDPIII National Program 3. Harness tourism potential 10 Attacks on 1. Enhance partnerships with non-state actors for 1. Governance and Security Democracy and effective service delivery Governance 11 A non-responsive civil 1. Re-engineer public service to promote 1. Public sector transformation service investment and give private sector Support 12 Inadequate Domestic 1. Increase resource mobilization 1. Development Plan Resource Implementation Mobilization 13 Structural inequalities 1. Increase Government’s participation in 1. Regional development in access to strategic sectors 2. Community mobilization and opportunities 2. Enhance partnerships with non-state actors for mindset change effective service delivery 3. Human capital Development 3. Improve access and quality of social services 4. Enhance skills and vocational training development 5. Increase access to social protection 6. Promote a development-oriented mindset 256 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

Annex 3: Other NDPIII Programmes Projects — Other NDPIII Programmes Projects

Annex 3: Other NDPIII Programmes Projects No Project Title MDA Start Date End Date Status AGRO-INDUSTRIALISATION ONGOING PROJECTS 1 NAADS NAADS 2015/16 2019/20 NDPII on going 2 Enhancing National Rice Production (ENRP) 2015/16 2020/21 NDPII on going Uganda Multi-Sectoral Food Security & Nutrition 3 2016/17 2020/21 NDPII on going Project (UMFSNP) 4 The National Oil Palm Project MAAIF 2019/20 2022/23 NDPII on going 5 Northern Uganda Farmers Livelihood Project (NUFLIP) 2015/16 2019/20 NDPII on going 6 Regional Pastoral Livelihood Improvement Project 2015/16 2019/20 NDPII on going Market Oriented and Environmentally Sustainable Beef 7 NDPII on going Industry in Uganda (MOBIP) 8 Uganda Meat Export Services (MESIP) 2015/16 2019/20 NDPII on going 9 Livestock Disease Control Project (LDC) NDPII on going 10 Support to Sustainable Fisheries Project 2015/16 2019/20 NDPII on going Promoting Environmentally Sustainable Commercial 11 2015/16 2019/20 NDPII on going Aquaculture Project for Irrigation Scheme development in Central 12 2015/16 2021/22 NDPII on going and Eastern Uganda Improving Access and Use of Agricultural Equipment 13 and Mechanization through the use of labour-saving 2015/16 2021/22 NDPII on going Technologies 14 Strengthening Institutional Development Project (SIDP) 2015/16 2019/20 NDPII on going 15 National Farmers Leadership Centre, Kampiringisa 2015/16 2020/21 NDPII on going 16 Support to Agricultural Training Institutions (SATIP) 2015/16 2019/20 NDPII on going 17 The National Food and Agriculture Statistics System NDPII on going COMESA- Policy and Seed Trade Harmonization 18 2016/17 2021/22 NDPII on going Project 19 Agriculture Value Chain Development Project MAAIF 2017/18 2021/22 NDPII on going Water for Production Regional Center-North (WfPRC- 20 MWE 2016/17 2020/21 NDPII on going N) based in Lira Water for Production Regional Center-East (WfPRC_E) 21 MWE 2016/17 2020/21 NDPII on going based in Mbale Water for Production Regional Centre-West (WfPRC- 22 MWE 2016/17 2020/21 NDPII on going W) based in Mbarara Multi-Lateral Lakes Edward & Albert Integrated 23 MWE 2016/17 2020/21 NDPII on going Fisheries and Water Resources Management (LEAFII) Farm Income Enhancement and Forestry Conservation 24 MWE 2016/17 2020/21 NDPII on going Project Phase II (FIEFOC II) 25 Drylands Integrated Development Project 2014/15 2019/20 NDPII on going Markets and Agricultural Trade Improvements 26 MoLG 2015/16 2022/23 NDPII on going Programme (MATIP 2) 27 Multisectoral Food Safety & Nutrition Project MAAIF NEW PROJECTS Agro-Industrialisation for Local Economic Development 1 (Agri-Led) In Rwenzori Region MoLG 2019/20 2021/22 Concept 2 National Oil Seeds Project – (Component 2) MoLG 2020/21 2026/27 Concept Rural Development & Food Security in Northern 3 Uganda MoLG 2020/21 2022/23 Concept Supporting Agribusiness Growth and Development through Enhanced Marketing systems and Value Under 4 Addition (SAGDEMVA) Scaling up. MoTIC 2020/21 2022/23 consideration/refinement Growing Inclusive Markets for Agricultural Under 5 Commodities (GIMAC) MoTIC 2020/21 2022/23 consideration/refinement 6 DRC market expansion MoTIC 2020/21 2023/24 Concept 7 Linking producers to exporters via producer associations MoTIC 2020/21 2024/25 Concept linking Ugandan exporters to foreign buyers ( UAE, 8 China, Britain) MoTIC 2020/21 2024/25 Concept 9 Export readiness assessment MoTIC 2020/21 2024/25 Concept Rural Industrial Development Strategy (OVOP Project 10 Phase III) MoTIC 2020/21 2024/25 Concept 11 Uganda Green Incubation Project - Songhai Model MoTIC 2020/21 2024/25 New project 12 ICT for Agricultural Development Project MAAIF 2020/21 2024/25 Concept 257 257 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status 13 China-Uganda South to South Cooperation Project 2020/21 2024/25 Concept Water for Smallholder Agricultural Production Project 14 (WASAP) MWE 2020/21 2024/25 Profile Development of Sustainable Cashew Value Chain 15 Program in Uganda MAAIF 2020/21 2024/25 Concept Increasing Rice Production and Marketing in Eastern 16 Uganda through Nucleus Farmer Model MAAIF 2020/21 2024/25 Concept 17 Support to Agricultural Training Institutions MAAIF 2020/21 2024/25 Concept Support to Institutional Development Project II (SIDP 18 II) MAAIF 2020/21 2024/25 Concept National Food and Agricultural Statistics Systems 19 (NFASS) MAAIF 2020/21 2024/25 Concept 20 National Oil Seeds Project MAAIF 2020/21 2024/25 Concept Climate Smart Agriculture & Agribusiness Development 21 Project MAAIF 2020/21 2024/25 Concept 22 Integrated Cassava Industry Development Program MAAIF 2020/21 2024/25 Concept Establishment of the National Agricultural Innovations 23 and Skills Enhancement (NAISE) Program MAAIF 2020/21 2024/25 Concept Establishment of Value Addition & Processing Plants In 24 Uganda (Grains, Fruits, Cassava And Tea) MAAIF 2020/21 2024/25 Concept Phase 2 Agro Processing and Marketing of Agricultural 25 Products (APM) MAAIF 2020/21 2024/25 Concept Restoration and Preservation of the Critically 26 Endangered Fish Species MAAIF 2020/21 2024/25 Profile Water and Sanitation Development Facility – 27 CENTRAL MWE 2020/21 2024/25 Profile Support to External Markets for Flowers, Fruits and 28 Vegetables MAAIF 2020/21 2024/25 Pre-feasibility Enhancing Resilience of Agricultural Landscapes and Value chains in Eastern Uganda-Scaling Up CSA 29 practices MAAIF 2020/21 2024/25 Concept Fostering Sustainability and Resilience for Food 30 Security in Karamoja Sub region MAAIF 2020/21 2024/25 Concept Uganda Strategic Analysis and Knowledge Support 31 System 2020/21 2024/25 Concept Integrated Landscape Management for Improved 32 Livelihoods and Ecosystem Resilience in Mount Elgon 2020/21 2024/25 Concept 33 Gamma irradiation Facility Project MEMD 2020/21 2021/22 Feasibility The maize seed and cotton production project under 34 Uganda Prisons Service UPS 2020/21 2024/25 Concept Relocation and Operationalisation of the National Livestock Resources Research Institute (NaLIRRI) from 35 Tororo to Maruzi NaLIRRI 2020/21 2024/25 Concept 36 East and Central Africa Agricultural Transformation MAAIF 2020/21 2024/25 Concept Improvement in NASARRI's and RWEBITABA 37 ZARDI's Infrastructure MAAIF 2020/21 2024/25 Concept PROJECT IDEAS 1 Coffee value chain development project MAAIF 2020/21 2024/25 NDPIII Project Idea 2 Tea value chain development project MAAIF 2020/21 2024/25 NDPIII Project Idea 3 National Oil Palm Project MAAIF 2020/21 2024/25 NDPIII Project Idea 4 National Oil Seeds Value Chain development MAAIF 2020/21 2024/25 NDPIII Project Idea Meat and meat products value chain development 5 project MAAIF 2020/21 2024/25 NDPIII Project Idea 6 Dairy products value chain development project MAAIF 2020/21 2024/25 NDPIII Project Idea Cotton, Textiles, apparels and leather value chains 7 development project MAAIF 2020/21 2024/25 NDPIII Project Idea 8 Fish and fish products value chain development project MAAIF 2020/21 2024/25 NDPIII Project Idea 9 Horticulture value chain development project MAAIF 2020/21 2024/25 NDPIII Project Idea Grain and starchy food staples value chain development 10 project MAAIF 2020/21 2024/25 NDPIII Project Idea 11 Water for agricultural production facility development MAAIF 2020/21 2024/25 NDPIII Project Idea Development of capacity for technology development 12 and transfer MAAIF 2020/21 2024/25 NDPIII Project Idea Market and Agricultural Trade Improvement project – 13 MATIP (Phase II) MAAIF 2020/21 2024/25 NDPIII Project Idea 258 258 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status 14 Development of agricultural storage facilities MAAIF 2020/21 2024/25 NDPIII Project Idea 15 Enhancing access and use of agricultural mechanization MAAIF 2020/21 2024/25 NDPIII Project Idea Fertilizer Production, Marketing, Distribution and 16 Utilization Project MAAIF 2020/21 2024/25 NDPIII Project Idea Commercialization and Mechanization of Agroindustry through strengthening Technical and Vocational 17 Education and Training (CAMA – TVET) MAAIF 2020/21 2024/25 NDPIII Project Idea 18 Enhancing access and use of ICT in agriculture MAAIF 2020/21 2024/25 NDPIII Project Idea 19 Establishment of irrigation systems project MAAIF 2020/21 2024/25 NDPIII Project Idea Enhancement of capacities for pests, vectors and diseases management project. (Domestic Production of 20 pesticides, acaricides, herbicides) MAAIF 2020/21 2024/25 NDPIII Project Idea Agriculture Storage and Post-harvest handling 21 Infrastructure MAAIF 2020/21 2024/25 NDPIII Project Idea Regional Agricultural Processing and Marketing (cassava processing in Gulu; meat processing in Nakasongola; grains processing in Jinja; dairy processing in Mbarara; potatoes in Kisoro; Rice in 22 Butaleja) MAAIF 2020/21 2024/25 NDPIII Project Idea MINERAL DEVELOPMENT ONGOING PROJECTS Mineral Laboratories equipping and Systems 1 MEMD 2017/18 2019/20 Ongoing improvement 2 Mineral Wealth and Mining Infrastructure Development MEMD 2015/16 2021/22 Ongoing NEW PROJECTS 1 Minerals Laboratories MEMD 2017/18 2019/20 Concept 2 Establishment of Steel Industry MEMD 2019/20 2024/25 Feasibility PROJECT IDEAS None SUSTAINABLE DEVELOPMENT OF PETROLEUM RESOURCES ONGOING PROJECTS None NEW PROJECTS Hoima Oil Refinery Proximity Development Project: 1 Phase II MoLHUD 2020/21 2024/25 Concept Hoima Oil Refinery Proximity Development Project. 2 (Phase one - Preparation of the project master plan) MoLHUD 2020/21 2024/25 Concept 3 Research and Innovations in Petrochemicals MoSTI 2020/21 2024/25 Concept 4 LPG Promotion, Supplies & Infrastructure Intervention MEMD 2020/21 2024/25 Prefeasibility Acquisition of petroleum data and promotion of frontier 5 basins PAU 2010/21 2024/25 Profile Development and Implementation of an integrated 6 National Petroleum Data Repository (NPDR) PAU 2020/21 2024/25 Profile Investment in the East African Crude Oil Pipeline 7 (EACOP) 2020/21 2024/25 Concept Investment in the Oil Refinery through Construction of 8 Oil Refinery Project (Hoima Oil Refinery) 2020/21 2024/25 Feasibility Development and Operation of Kampala Storage 9 Terminal 2020/21 2022/23 Concept Bulk Fuel Trading and Construction of the Oil Jetty and 10 Pipeline at Jinja Storage Terminal 2020/21 2021/22 Concept Infrastructure Development for Kabaale Petro based 11 Industrial Park 2020/21 2024/25 Concept Establishment of Modern Laboratory for Oil and Gas 12 Analysis PAU 2020/21 2024/25 Profile The Establishment of Petroleum regional Office in the 13 Albertine Graben PAU 2020/21 2023/24 Concept PROJECT IDEAS None TOURISM DEVELOPMENT ONGOING PROJECTS None NEW PROJECTS 259 259 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status Development of Museums and Heritage Sites for 1 Cultural Promotion MoTWA 2020/21 2024/25 Concept Pre-feasibility studies 2 Mt. Rwenzori Cable Car Project MoTWA 2020/21 2024/25 conducted. Designs for Kitagata 3 Hot springs and Waterfalls Tourism Development MoTWA 2020/21 2024/25 hotsprings done. 4 Enhancing Wildlife Research Capacity in Uganda MoTWA 2020/21 2024/25 Profile Development of Source of the Nile Phase II and Kigulu 5 hills MoTWA 2020/21 2024/25 Concept 6 Mitigating Human-Wildlife Conflict Project MoTWA 2020/21 2024/25 Profile Mt. Rwenzori Tourism Infrastructure Development 7 Project (Phase II) MoTWA 2020/21 2024/25 Pre-feasibility Study 20 percent of the targeted work completed at Namugongo including a police station, a command Centre, Resuscitation Center, Police Station, a water tank, 8 washrooms, 2 gates where one has an observational tower, a Redevelopment of Namugongo and the surrounding baggage scanner and one 8 areas MoTWA 2020/21 2024/25 lagoon. UWEC infrastructure developed including animal exhibits, floating restaurant, Water reservoir, and 9 L. Victoria Tourism Circuit development Project MoTWA 2020/21 2024/25 establishment of a beach. Establishment of Regional Satelite Wildlife 10 Conservation Education Centers in Uganda MoTWA 2020/21 2024/25 Feasibility study Tourism Roads Development Project (Kabale - Lake Bunyonyi (8.0km); Kisoro - Mgahinga National Park Headquarters (14.0km); Kisoro - Nkuringo - Rubuguri - Muko (54.0km); Rubuguri-Nteko Road (22.0km); Hamurwa-Kerere-Kanungu/Buleme-Buhoma-Butogota- Hamayanja-Ifasha-Ikumba (149.0Km); Ishasha- Katunguru (88.0Km); Kitgum-olumu-Kalenga-Kapedo- Kaabong (184Km); Kebisoni-Kisizi-Muhanga/Kambuga 11 Road (117km)) MoTWA 2020/21 2024/25 Concept 12 Mt. Elgon Tourism infrastructure Development Project MoTWA 2020/21 2024/25 Concept 13 Improve and upgrade Kidepo Aerodrome MoTWA 2020/21 2024/25 Concept Developing Dolwe and other Rock Art Sites in Eastern Concept 14 Uganda into Tourism Hubs MoTWA 2020/21 2024/25 PROJECT IDEAS 1 National Convention Centre Establishment MoTWA 2020/21 2024/25 NDPIII Project Idea CLIMATE CHANGE, NATURAL RESOURCES, ENVIRONMENT, LAND, AND WATER MANAGEMENT ONGOING PROJECTS Karamoja Small Town and Rural growth Centres Water 1 MWE 2016/17 2020/21 Ongoing Supply and Sanitation Project Enhancing Resilience of Communities to Climate 2 MWE 2017/18 2021/22 Ongoing Change Building Resilient Communities, Wetland Ecosystems 3 MWE 2018/19 2022/23 Ongoing and Associated Catchments in Uganda Protection of Lake Victoria-Kampala Sanitation 4 MWE 2010/11 2023/24 Ongoing Program Kampala Water Lake Victoria Water and Sanitation 5 MWE 2011/12 2023/24 Ongoing Project 6 Karamoja Drought Resilience Project MWE 2019/20 2023/24 Ongoing Solar Powered Mini-Piped Water Schemes in rural 7 MWE 2015/16 2019/20 Ongoing Areas 8 Piped Water in Rural Areas MWE 2015/16 2019/20 Ongoing 9 Water Services Acceleration Project (SCAP) MWE 2017/18 2019/20 Ongoing NEW PROJECTS Education and Science Cooperation between Çukurova University and Makerere University: Development of 1 Irrigation Capability in Nakasongola MUK 2020/21 2024/25 Concept 260 260 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status Water and Sanitation Development Facility-North II 2 (WSDF-N II) MWE 2020/21 2024/25 Concept 100 percent Service Coverage Acceleration Project 3 (SCAP100 – Umbrellas) MWE 2020/21 2024/25 Concept Strategic Towns Water Supply and Sanitation Project 4 (STWSSP) MWE 2020/21 2024/25 Concept Integrated Water Resource Management and 5 Development Project MWE 2020/21 2024/25 Concept Water and Sanitation Development Facility-South West 6 II (WSDF-SW II) MWE 2020/21 2024/25 Concept 7 National Wetland Project Phase III MWE 2020/21 2024/25 Pre-feasibility Lake Victoria Water and Sanitation (LVWATSAN) 8 Phase 3 MWE 2020/21 2024/25 Proposal Safe Water for Healthy Productive Population by 2030 9 (SWAHPP 2030) MWE 2020/21 2024/25 Profile 10 Multi-Purpose Water Use Project In Kiruhura District MWE 2020/21 2024/25 Pre-feasibility 11 Multipurpose Water Use Project in Hoima District MWE 2020/21 2024/25 Concept 12 Water Security enhancement innovation in Industries MWE 2020/21 2024/25 Concept 13 Irrigation for climate resilience project MWE 2020/21 2024/25 Profile 14 National Tree planting Project NFA 2020/21 2024/25 Concept Strengthening Forest Protection and Landscape 15 Resilience project (SFLP) NFA 2020/21 2024/25 Feasibility Water and Sanitation Development Facility Central 16 Phase 2 MWE 2020/21 2024/25 Concept Water and Sanitation Development Facility-East II 17 (WSDF-E II) MWE 2020/21 2024/25 Concept 18 Inner Murchison Bay Clean Up Project (IMB CUP) MWE 2020/21 2024/25 Concept 19 Water Management Zones Project Phase 2 MWE 2020/21 2024/25 Prefeasibility 20 Water for Production Project Phase II MWE 2020/21 2024/25 Concept Development of solar powered water supply systems 21 project MWE 2020/21 2024/25 Pre-feasibility Insigiro Water and Sanitation Infrastructure 22 Development Project MWE 2020/21 2024/25 Concept Support to rural water supply and sanitation project. 23 (From 53percent coverage to 71percent coverage) MWE 2020/21 2024/25 Feasibility Upgrade of meteorological infrastructure and systems 24 efficient services delivery in Uganda UNMA 2020/21 2024/25 Concept PROJECT IDEAS Development of Capacity for Climate Proofing of 1 Infrastructure Investments MWE 2020/21 2024/25 Concept submitted to DC Concept Note to be Management and Maintenance of Natural Water Bodies submitted to Finance 2 and Reservoirs in Uganda MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 3 Adapting to Climate Change in the Lake Victoria basin MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 4 Water Resources Pollution Management s MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 5 Management of Aquatic water weeds MWE 2020/21 2024/25 Committee Concept Note to be Mapping of groundwater aquifer resources to guide submitted to Finance 6 development of groundwater resources MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 7 Lake Victoria Environmental Management Phase Three MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 8 Lake Victoria Integrated Water Resources Management MWE 2020/21 2024/25 Committee Concept Note to be National Rehabilitation and Expansion for existing submitted to Finance 9 boreholes MWE 2020/21 2024/25 Committee 261 261 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status Concept Note to be Rural Universal Water and Sanitation Access submitted to Finance 10 (RUWASA 2030) Phase I MWE 2020/21 2024/25 Committee Concept Note to be Rehabilitation and Expansion of Rural Large Gravity submitted to Finance 11 Flow Schemes MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 12 Integrated Bulk Water Supply and Multi-Purpose MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 13 Climate resilient Rainwater Harvesting MWE 2020/21 2024/25 Committee Concept Note to be Scaling SMART appropriate Technology Development submitted to Finance 14 Project MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 15 Climate Smart Water Supply and Sanitation Project MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 16 Construction of Kisoro Water Supply and Sanitation MWE 2020/21 2024/25 Committee Concept Note to be Proposed District Headquarters Water Supply and submitted to Finance 17 Sanitation MWE 2020/21 2024/25 Committee Concept Note to be Implementation of Faecal Sludge Service Chain submitted to Finance 18 Management in Un-Sewered Urban MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 19 Implementation of Wakiso Sanitation Master Plan MWE 2020/21 2024/25 Committee Construction of an integrated wastewater and pollution Concept Note to be management Facility for the China – Uganda Liaoshen submitted to Finance 20 Industrial Park in Kapeeka MWE 2020/21 2024/25 Committee Installation of solar energy packages for selected water Concept Note to be supply systems under the Energy for Rural submitted to Finance 21 Transformation Phase III (ERT III) MWE 2020/21 2024/25 Committee Implementation of s under the Nexus Green – Concept Note to be Component Urban Water Supply Systems for Domestic submitted to Finance 22 use MWE 2020/21 2024/25 Committee Implementation of the Regional Bulk Water Transfer s Concept Note to be in the 5No. Regions of Central, South Western, Eastern,, submitted to Finance 23 Northern and Karamoja. MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 24 Access and Benefit-sharing of Genetic Resources MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 25 National E-waste Collection and Dismantling Center MWE 2020/21 2024/25 Committee Concept Note to be Environmental Literacy and Public Education for submitted to Finance 26 Uganda MWE 2020/21 2024/25 Committee Concept Note to be Support to Decentralized Environmental Management submitted to Finance 27 Function in Uganda MWE 2020/21 2024/25 Committee Concept Note to be Environment Management Programme for Refugee submitted to Finance 28 Settlements MWE 2020/21 2024/25 Committee Concept Note to be Enhancing Regulation and Management of Oil and Gas submitted to Finance 29 Sector in Uganda PAU 2020/21 2024/25 Committee Concept Note to be submitted to Finance 30 Greening Uganda`s Sector Plans and Programmes MWE 2020/21 2024/25 Committee Concept Note to be submitted to Finance 31 Combating Industrial Green House Gases Emissions MWE 2020/21 2024/25 Committee 262 262 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status Concept Note to be Restoration of riverbanks and Lakeshores in the Victoria submitted to Finance 32 and Kyoga Basins MWE 2020/21 2024/25 Committee Concept Note to be Strengthening Decentralized Environment and Natural submitted to Finance 33 Resources Management for sustainable Development MWE 2020/21 2024/25 Committee Concept Note to be Enhancing Resilience of Mountain Ecosystems for submitted to Finance 34 Improved Community Livelihoods MWE 2020/21 2024/25 Committee Water for Production Regional Centre - North Project 35 Phase 2 MWE 2020/21 2024/25 Will start when phase I ends Water for Production Regional Centre - East Project 36 Phase 2 MWE 2020/21 2024/25 Will start when phase I ends Water for Production Regional Centres - West Project 37 Phase 2 MWE 2020/21 2024/25 Will start when phase I ends Concept Note submitted to 38 Strengthening Water Utilities Regulation Project MWE 2020/21 2024/25 Dev Cmtee. Concept Note submitted to 39 Transboundary Water Development and Management MWE 2020/21 2024/25 Dev Cmtee. Forest Resources Development and Conservation Concept Note submitted to 40 Project (FREDCO) MWE 2020/21 2024/25 Dev Cmtee. Global Climate Change Alliance plus (GCCA+): Scaling Concept Note to be 41 up Agriculture Adaptation to Climate Change in Uganda MWE 2021/22 2025/26 submitted to WESWG. Climate Resilient Livelihood Opportunities for Women Economic Empowerment (CRWEE) in Karamoja and West Nile Regions of Uganda (October 2018 - 30 Concept Note to be 42 September 2030 ) MWE 2021/22 2025/26 submitted to WESWG. Building resilience to Climate Change Induced Flooding in Uganda through Management of Water Resources and Concept Note submitted to 43 Social Protection Adaptation Mechanisms. MWE 2021/22 2025/26 Dev Cmtee. Building resilience to droughts in the cattle corridor Concept Note to be 44 areas of Uganda through improved water managemnt MWE 2021/22 2025/26 submitted to WESWG. Lake Kyoga Integrated Water Resources Management Concept Note to be 45 Project MWE 2021/22 2025/26 submitted to WESWG. Project on the Implementation of the Kalagala-Itanda Offset Restoration of fragile ecosystems (riverbanks and Sustainable management 46 lakeshores projects) MWE 2021/22 2024/25 plan Support Forest Landscape Restoration and Management Piloted in Awoja and 47 Project MWE 2021/22 2024/25 Mubuku catchments Strengthening environmental compliance monitoring in 48 Uganda MWE 2021/22 2025/26 Concept drafted Concept Note to be Enhancing Resilience and Productivity of Rangeland submitted to Finance 49 Ecosystems in the cattle corridor MWE 2020/21 2024/25 Committee Concept Note to be Mainstreaming environment and natural resources submitted to Finance 50 management in other sectors MWE 2020/21 2024/25 Committee Concept Note to be Environment Management and Capacity Building for submitted to Finance 51 Sectors and Local Governments MWE 2020/21 2024/25 Committee National Community Tree Planting Project (restore & maintain 102,000 ha of degraded forests & Establish 200,000 ha of community tree planting-woodlots; 6,320 52 of urban planting-greening) NFA 2020/21 2024/25 NDPIII Project Idea Comprehensive inventory of Land (from current 23 53 percent of titled land to 50 percent) MoLHUD 2020/21 2024/25 NDPIII Project Idea PRIVATE SECTOR DEVELOPMENT ONGOING PROJECTS 1 Competitiveness and Enterprises Development (CEDP) MFPED 2020/21 2023/24 Ongoing Capitalisation of strategic Public Corporations (UDB, 2 UDC and UNOC) 2015/16 2024/25 Ongoing NEW PROJECTS 1 Handcraft exports development MoTIC 2020/21 2024/25 Concept 2 Implementation of Business Continuity NIRA 2021/22 2023/24 Concept 263 263 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status PROJECT IDEAS Co-operatives revitalization for increased production 1 and productivity MoTIC 2020/21 2024/25 NDPIII Project Idea Micro, Small and Medium Enterprise (MSME) 2 Competitiveness Project MoTIC 2020/21 2024/25 NDPIII Project Idea 3 MSMEs Nurturing for Youth Employment Project MoTIC 2020/21 2024/25 NDPIII Project Idea MANUFACTURING ONGOING PROJECTS Industrial Parks Development (Namanve, Bweyogerere, Luzira, Soroti, Moroto, Mbale, Masaka, Jinja, Mbarara, Continuing having started in 1 MoTIC 2020/21 2024/25 Kasese, Luwero-Nakaseke, Arua, Gulu, Fort-Portal, 2019/2021 Kabale, Hoima, Oraba, Onaka) NEW PROJECTS 1 Namboole – Industrial Park – Mukono UNRA 2020/21 2024/25 FS and DD Completed Electrification of 110 Industrial Parks (Category 1) & 2 Electrification of Industrial Parks (Category 2) MEMD 2020/21 2021/22 Concept 3 Electrification of Industrial Parks Project MEMD 2020/21 2024/25 Feasibility PROJECT IDEAS Textiles, apparels and leather value chains development 1 project MoTIC 2020/21 2024/25 NDPIII Project Idea Construction of Border Export Markets especially for MoTIC 2 South Sudan and Eastern DRC 2020/21 2024/25 NDPIII Project Idea 3 Tractor and automotive assembly MoTIC 2020/21 2024/25 NDPIII Project Idea INTEGRATED TRANSPORT INFRASTRUCTURE AND SERVICES ONGOING PROJECTS 1 Upgrade Atiak - Moyo-Afoji (104km) MoWT 2014/15 2019/20 NDPII ongoing project 2 Improvement of Ferry Services MoWT 2018/19 2022/23 NDPII ongoing project 3 Design Masaka-Bukakata road MoWT 2015/16 2019/20 NDPII ongoing project 4 Design of Mukono-Katosi-Nyenga (72km) MoWT 2014/15 2019/20 NDPII ongoing project 5 Design Mpigi-Kabulasoka-Maddu (135 km) MoWT 2017/18 2021/22 NDPII ongoing project 6 Design Kapchorwa-Suam road (77km) MoWT 2015/16 2019/20 NDPII ongoing project 7 Design Kyenjojo-Hoima-Masindi-Kigumba (238km) MoWT 2008/09 2020/21 NDPII ongoing project 8 Hoima-Wanseko Road (83Km) _ Critical Oil Roads MoWT 2012/13 2019/20 NDPII ongoing project 9 Musita-Lumino-Busia/Majanji Road MoWT 2013/14 2020/21 NDPII ongoing project 10 Mubende-Kakumiro-Kagadi Road MoWT 2013/14 2019/20 NDPII ongoing project 11 Kampala Northern Bypass Phase 2 MoWT 2013/14 2021/22 NDPII ongoing project 12 Kampala-Jinja Expressway MoWT 2020/21 2024/25 NDPII ongoing project 13 Seeta-Kyaliwajjala-Matugga-Wakiso-Buloba-Nsangi MoWT 2019/20 2024/25 NDPII ongoing project 14 Najjanankumbi-Busabala Road and Nambole- MoWT 2017/18 2020/21 NDPII ongoing project 15 Tirinyi-Pallisa-Kumi/Kamonkoli Road MoWT 2018/19 2021/22 NDPII ongoing project 16 Albertine Region Sustainable Development Project MoWT 2016/17 2019/20 NDPII ongoing project 17 Upgrading Rukungiri-Kihihi-Ishasha/Kanungu Road MoWT 2014/15 2022/23 NDPII ongoing project 18 Upgrading Mbale-Bubulo-Lwakhakha Road MoWT 2016/17 2019/20 NDPII ongoing project 19 Kampala Flyover MoWT 2015/16 2019/20 NDPII ongoing project 20 Construction of 66 Selected Bridges MoWT 2019/20 2023/24 NDPII ongoing project 21 Upgrading of Muyembe-Nakapiripirit (92 km) MoWT 2019/20 2023/24 NDPII ongoing project 22 Lot 1: Rwenkunye-Apac (91Km) Road MoWT 2019/20 2023/24 NDPII ongoing project 23 Lot 2: Apac-Lira-Puranga (100Km) Road. MoWT 2016/17 2020/21 NDPII ongoing project 24 Soroti-Katakwi-Moroto-Lokitonyala road MoWT 2019/20 2022/23 NDPII ongoing project 25 Kibuye- Busega MoWT 2019/20 2022/23 NDPII ongoing project 26 Busega-Mpigi MoWT 2019/20 2024/25 NDPII ongoing project 27 Luwero- Butalangu MoWT 2019/20 2024/25 NDPII ongoing project 28 Karugutu-Ntoroko Road MoWT 2018/19 2022/23 NDPII ongoing project 29 Land Acquisition MoWT 2018/19 2022/23 NDPII ongoing project 30 UNRA Retooling Project MoWT 2018/19 2020/21 NDPII ongoing project 31 Upgrading of Kitala-Gerenge Road MoWT 2019/20 2020/21 NDPII ongoing project 32 Upgrading of Kaya-Yei Road MoWT 2019/20 2023/24 NDPII ongoing project 33 Development of Nakaseke-Ssingo-Kituma road MoWT 2019/20 2023/24 NDPII ongoing project 34 Kihihi-Butogota-Bohoma Road MoWT 2019/20 2022/23 NDPII ongoing project 35 Kisoro-Lake Bunyonyi Road MoWT 2019/20 2022/23 NDPII ongoing project 36 Kisoro-Mgahinga National Park Headquarters Road MoWT 2019/20 2022/23 NDPII ongoing project 264 264 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status 37 Kisoro-Nkuringo-Rubugiri-Muko Road MoWT 2019/20 2022/23 NDPII ongoing project 38 Kebisoni-Kisizi-Muhanga road MoWT 2019/20 2022/23 NDPII ongoing project 39 Nansana-Busunju Section I MoWT 2019/20 2020/21 NDPII ongoing project 40 Nansana-Busunju II MoWT 2019/20 2020/21 NDPII ongoing project 41 Namunsi-Sironko/Muyembe-Kapchorwa Section I MoWT 2019/20 2020/21 NDPII ongoing project 42 Fortportal Kyenjojo Road MoWT 2019/20 2020/21 NDPII ongoing project 43 Hima-Katunguru Road MoWT 2017/18 2020/21 NDPII ongoing project 44 Ishaka-Rugazi-Katunguru Road MoWT 2019/20 2020/21 NDPII ongoing project 45 Nakalama-Tirinyi-Mbale Road MoWT 2019/20 2020/21 NDPII ongoing project 46 Fortportal Hoima Road MoWT 2020/21 2023/24 NDPII ongoing project 47 Koboko Yumbe Moyo MoWT 2020/21 2023/24 NDPII ongoing project 48 Yumbe Ure MoWT 2020/21 2023/24 NDPII ongoing project PROPOSED NDPIII PROJECTS 1 Kayunga – Bbaale – Galiraya UNRA 2020/21 2024/25 FS and DD Completed 2 Jinja-Mbulamuti-Kamuli UNRA 2020/21 2024/25 FS and DD Completed 3 Kotido-Kaabong UNRA 2020/21 2024/25 FS and DD Completed 4 Moroto-Kotido UNRA 2020/21 2024/25 FS and DD Completed Kisubi-Nakawuka-Natete / Nakawuka-Kasanje- Mpigi/Nakawuka-Mawugulu-Nanziga-Maya/Kasanje- 5 Buwaya UNRA 2020/21 2024/25 FS and DD Completed 6 Namboole – Industrial Park – Mukono UNRA 2020/21 2024/25 FS and DD Completed 7 Kitgum-Kidepo (Kitgum – Orom – Karenga) UNRA 2020/21 2024/25 FS and DD Completed 8 Luwero-Butalangwa UNRA 2020/21 2024/25 FS and DD Completed 9 Katine-Ochero UNRA 2020/21 2024/25 FS and DD Completed 10 Dokolo – Ochero – Namasale UNRA 2020/21 2024/25 FS and DD Completed 11 Puranga-Acholibur UNRA 2020/21 2024/25 FS and DD Completed Procurement of Design and Build Contractor ongoing for Kira – Kasangati – 12 Buloba – Wakiso-Kassengejje- Matugga – Kasangati UNRA 2020/21 2024/25 Matugga Section. Procurement of Design and 13 Najanankumbi – Busabala – Kazi UNRA 2020/21 2024/25 Build Contractor ongoing Civil Works to commence 14 Atiak – Laropi – Moyo – Afoji UNRA 2020/21 2024/25 in January 2019 15 Luku – Kalangala – Mulabana UNRA 2020/21 2024/25 FS and DD Completed 16 Namagumba – Budadiri – Nalugugu UNRA 2020/21 2024/25 FS and DD Completed 17 Bubulo – Buduuda Circular Road UNRA 2020/21 2024/25 FS and DD Completed 18 Kamuli – Bukungu UNRA 2020/21 2024/25 FS and DD Completed FS and DD Completed considered for inclusion as tourism road funded by 19 Kabale – Lake Bunyonyi UNRA 2020/21 2024/25 AfDB FS and DD Completed considered for inclusion as tourism road funded by 20 Kisoro – Mgahinga National Park Headquarters UNRA 2020/21 2024/25 AfDB 21 Pajule – Pader District Headquarters UNRA 2020/21 2024/25 FS and DD Completed 22 Atiak – Kitgum UNRA 2020/21 2024/25 FS and DD Completed 23 Karenga – Bira (Kaabong – Sudan Border) UNRA 2020/21 2024/25 FS and DD Completed 24 Kisoro – Nkuringo – Rubuguri – Muko UNRA 2020/21 2024/25 FS and DD Completed FS and DD Completed considered for funding by 25 Ishasha – Katunguru UNRA 2020/21 2024/25 AfDB 26 Rwimi – Dura – Kamwenge – Kyenjojo UNRA 2020/21 2024/25 Project at concept stage 27 Ntusi – Lyantonde – Rakai UNRA 2020/21 2024/25 Project at concept stage 28 Misindye – Kabimbiri – Zirobwe – Kapeeka – Singo UNRA 2020/21 2024/25 Project at concept stage 29 Lugazi – Buikwe – Kiyindi UNRA 2020/21 2024/25 Project at concept stage 30 Kayunga – Busana – River Nile – Kamuli UNRA 2020/21 2024/25 Project at concept stage 31 Soroti – Serere – Pingire – Mugarama UNRA 2020/21 2024/25 Project at concept stage 32 Kumi – Ngora – Brooks Corner – Serere – Kagwara UNRA 2020/21 2024/25 Project at concept stage 33 Moroto – Lokitanyala UNRA 2020/21 2024/25 FS and DD Completed 34 Kotido – Abim – Aloi – Lira UNRA 2020/21 2024/25 Project at concept stage 265 265 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status FS and DD ongoing. Considered for funding by World Bank as part of the response to the displaced persons situation in West 35 Koboko – Yumbe – Moyo UNRA 2020/21 2024/25 Nile Region Considered for financing by JICA as part of response to the displaced persons situation in West Nile 36 Ure – Yumbe UNRA 2020/21 2024/25 Region 37 Tororo – Busia UNRA 2020/21 2024/25 FS and DD ongoing 38 Mbale - Nkokonjeru UNRA 2020/21 2024/25 Project at concept stage 39 Kampala – Mukono UNRA 2020/21 2024/25 Project at concept stage 40 Kalerwe – Mpererwe – Manyangwa UNRA 2020/21 2024/25 Project at concept stage Detailed designs for Zana – Kajansi completed. Kajansi 41 Zana – Kajansi – Mpala UNRA 2020/21 2024/25 – Mpala at concept stage. Procurement of design 42 Namungona – Nansana – Kakiri UNRA 2020/21 2024/25 Consultant ongoing. 43 Bwaise – Kawempe – Matuga UNRA 2020/21 2024/25 Project at concept stage 44 Karuma Bridge & Access Roads UNRA 2020/21 2024/25 Detailed designs complete 45 Laropi/Umi Bridge UNRA 2020/21 2024/25 Project at concept stage 46 New Packwach Bridge and Access Roads UNRA 2020/21 2024/25 Project at concept stage 47 New Katunguru Bridge and Access Roads UNRA 2020/21 2024/25 Project at concept stage Feasibility studies and 48 Masindi Port Bridge and Access Roads UNRA 2020/21 2024/25 detailed designs complete 49 New Sezibwa Bridge UNRA 2020/21 2024/25 Project at concept stage 50 Semiliki bridge UNRA 2020/21 2024/25 Project at concept stage 51 Nakiwogo Bridge UNRA 2020/21 2024/25 Project at concept stage 52 katuna-muko-kachwekano UNRA 2020/21 2024/25 project concept Procurement of PPP 53 Kampala Southern by-pass UNRA 2020/21 2024/25 Concessionaire ongoing Procurement of PPP 54 Kampala-Jinja Expressway UNRA 2020/21 2024/25 Concessionaire ongoing Feasibility studies complete. 55 Kampala-Bombo Expressway UNRA 2020/21 2024/25 DD ongoing 56 Kampala Outerbelt way and Bridge Crossing at Gaba UNRA 2020/21 2024/25 DD ongoing Procurement of a design 57 Kampala - Busunju - Hoima UNRA 2020/21 2024/25 consultant ongoing. VVIP Express Route (Nakasero-Northern Bypass 58 Express Route) UNRA 2020/21 2024/25 FS and DD completed 59 Kamuli - Kaliro - Paliisa UNRA 2020/21 2024/25 Project at concept stage Procurement for design 60 Kazo - Buremba - Kyegegwa UNRA 2020/21 2024/25 consultant ongoing 61 Rakai - Isingiro - Kafunjo - Kikagati UNRA 2020/21 2024/25 Project at concept stage 62 Soroti - Amuria - Abim UNRA 2020/21 2024/25 Project at concept stage 63 Gulu - Pader - Patongo - Abim UNRA 2020/21 2024/25 Project at concept stage 64 Kilak - Rhino Camp UNRA 2020/21 2024/25 Project at concept stage 65 Panyimur - Pakwach - Rhino camp - Laropi UNRA 2020/21 2024/25 Project at concept stage FS and DD of Butalangu – Ngoma complete. Procurement of works contract ongoing. Ngoma – 66 Butalangu - Ngoma - Masindi UNRA 2020/21 2024/25 Masindi at concept stage 67 Nakasongola - Zengebe UNRA 2020/21 2024/25 Project at concept stage 68 Goli - Paidha-Zombo-Warr-Arua UNRA 2020/21 2024/25 FS and DD completed 69 Corner Ayer-Corner Aboke-Bobi UNRA 2020/21 2024/25 FS and DD completed Access to Muzizi Hydro Power Project (Muhoro - 70 Ndaiga - Muzizi) UNRA 2020/21 2024/25 Project at concept stage Kabwohe Buzibwera/Nsika–Ibanda –Kabujogera – 71 Mashoro–Rwenjaza/Kyambura UNRA 2020/21 2024/25 FS and DD Complete 72 Kashwa-Kashongi-Ruhumba, UNRA 2020/21 2024/25 FS and DD complete 73 Kashozi-Buremba-Kariro UNRA 2020/21 2024/25 Project at concept stage 266 266 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status 74 Nabumali - Butaleja - Namutumba UNRA 2020/21 2024/25 FS and DD ongoing Project at concept stage (being considered for low 75 Nagongera - Busolwe UNRA 2020/21 2024/25 cost seal intervention) Hamurwa - Kerere- Kanungu/ Buleme - Buhoma - 76 Butogota - Hamayanja - Ifasha - Ikumba UNRA 2020/21 2024/25 FS and DD ongoing 77 Kanoni - Misingi - Mityana UNRA 2020/21 2024/25 FS and DD ongoing 78 Bombo - Ndejje - Kalasa UNRA 2020/21 2024/25 FS and DD ongoing 79 Kabwohe - Kitagata - Rukungiri UNRA 2020/21 2024/25 Project at concept stage 80 Adjumani - Obongi - Kulikulinga UNRA 2020/21 2024/25 Project at concept stage 81 Katuugo-Kinyogogga UNRA 2020/21 2024/25 Project at concept stage 82 Kinyogogga-Kaweweeta UNRA 2020/21 2024/25 Project at concept stage Iganga - Bulopa/ Buwenge - Kaliro/Bugembe - Kakira - 83 Bulongo UNRA 2020/21 2024/25 FS and DD ongoing 84 Kitagate - Kitwe - Mirama Hills UNRA 2020/21 2024/25 Project at concept stage 85 Myanzi - Bukuya - Kiboga UNRA 2020/21 2024/25 Project at concept stage 86 Kapeeka - Singo Military Barracks/Mayanja UNRA 2020/21 2024/25 Project at concept stage 87 URC Capacity Building Project; Phase 1 URC 2020/21 2021/22 Feasibility study complete 88 URC Capacity Building Project; Phase 2 URC 2020/21 2022/23 Feasibility study complete Rehabilitation of Tororo Gulu Railway Line (Physical Rehabilitation of 375km & capacity building component 89 to URC URC 2020/21 2023/24 Feasibility study complete 90 Passenger Train Services (PTS) Expansion Project URC 2020/21 2024/25 Feasibility study complete 91 Rehabilitation of MV Pamba URC 2020/21 2023/24 Feasibility study complete 92 Rehabilitation of Ports of Portbell and Jinja URC 2020/21 2024/25 Feasibility study complete Reconstruction of Kampala-Kasese Railway 93 Line(330kms) URC 2020/21 2023/24 Feasibility study complete 94 Gulu-Pakwachi URC 2020/21 2023/24 Feasibility study complete 95 Establish a Centralized Aeronautical Database UCAA 2020/21 2024/25 Feasibility study complete 96 Implement the HF datalink (HFDL) UCAA 2020/21 2024/25 Feasibility study complete Implement ground-based augmentation system (GBAS) 97 landing system (GSL)approaches UCAA 2020/21 2024/25 Feasibility study complete 98 Substitution/Upgrading some Navigation Aids: UCAA 2020/21 2024/25 Feasibility study complete Installation of Super AWOS (Automatic Weather 99 Observation System) at Soroti Aerodrome UCAA 2020/21 2024/25 Feasibility study complete Design, construction and equipage of a new Control 100 Tower at Entebbe International Airport UCAA 2020/21 2024/25 Feasibility study complete Acquisition of Electronic Terrain and Obstacle Data (eTOD): Areas 2, 3 & 4 for Mbarara, Gulu, Soroti and 101 Arua UCAA 2020/21 2024/25 Feasibility study complete Construct a new Domestic Terminal at EIA with 102 associated car park and access road UCAA 2020/21 2024/25 Feasibility study complete Construct an automated multi-storey car park at EIA 103 (2500 parking slots) UCAA 2020/21 2024/25 Feasibility study complete Expand the road toll at EIA (4 nos. additional ticketing 104 lanes constructed) UCAA 2020/21 2024/25 Feasibility study complete 105 Refurbish the RFFS station UCAA 2020/21 2024/25 Feasibility study complete Establish and implement the State Safety Programme 106 (SSP) UCAA 2020/21 2024/25 Feasibility study complete Establish an Aviation Training Centre in Entebbe or 107 Kampala UCAA 2020/21 2024/25 Feasibility study complete 108 Establish an Aviation Centre in Kampala UCAA 2020/21 2024/25 Feasibility study complete 109 Zone land around airports UCAA 2020/21 2024/25 Feasibility study complete Acquire land for future expansion of Entebbe 110 International Airport UCAA 2020/21 2024/25 Feasibility study complete Expansion and upgrade of Entebbe International Airport 111 – Phase2 UCAA 2020/21 2024/25 Feasibility study complete 112 Improve and upgrade Arua Airport UCAA 2020/21 2024/25 Feasibility study complete 113 Improve and upgrade Kasese Airport UCAA 2020/21 2024/25 Feasibility study complete 114 Improve and upgrade Gulu Airport UCAA 2020/21 2024/25 Feasibility study complete 115 Improve and upgrade Pakuba Airport UCAA 2020/21 2024/25 Feasibility study complete 116 Improve and upgrade Kidepo Airport UCAA 2020/21 2024/25 Feasibility study complete 117 Improve and upgrade Kisoro Airport UCAA 2020/21 2024/25 Feasibility study complete 267 267 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status 118 Improve and upgrade Mbarara Airport UCAA 2020/21 2024/25 Feasibility study complete 119 Improve and upgrade Tororo Airport UCAA 2020/21 2024/25 Feasibility study complete 5 year - Road Maintenance funding: Routine and 120 periodic maintenance works URF 2020/21 2024/25 Feasibility study complete Tarmacking projects for Town Council roads - 100km 121 for 5 years (20km per year) URF 2020/21 2024/25 Feasibility study complete Purchase of supervision transport for 134 Districts & 41 122 Municipalities (200 vehicles @ 200mio.) URF 2020/21 2024/25 Feasibility study complete 123 Research studies URF 2020/21 2024/25 Feasibility study complete 124 Rehabilitation of urban roads MoWT 2020/21 2024/25 Undergoing feasibility Upgrading / Rehabilitation of Road Infrastructure in 125 GKMA and Wakiso District MoWT 2020/21 2024/25 Undergoing feasibility 126 Improvement of Gulu Municipal Roads-Phase 2 MoWT 2020/21 2024/25 Undergoing feasibility 127 Low Cost Sealing of Rural Roads MoWT 2020/21 2024/25 Undergoing feasibility 128 Low Cost Sealing of District Roads MoWT 2020/21 2024/25 129 District Roads Improvement Project MoWT 2020/21 2024/25 Undergoing feasibility 130 Community Roads Improvement Project MoWT 2020/21 2024/25 Undergoing feasibility Construction of 120 Steel Bridges on the DUCAR 131 Network MoWT 2020/21 2024/25 Undergoing feasibility 132 Rural Bridge Infrastructure Development Project MoWT 2020/21 2024/25 Undergoing feasibility Rehabilitation of Regional Mechanical Workshops in 133 Gulu, Mbarara, Bugembe and Kampala MoWT 2020/21 2024/25 Undergoing feasibility Purchase of road equipment for Urban Councils and a 134 bitumen/ resealing equipment for the Ministry MoWT 2020/21 2024/25 Undergoing feasibility 135 Construction of One Stop Border Posts Facilities MoWT 2020/21 2024/25 Undergoing feasibility Designs completed. Procurement of a Contractor 136 Construction of Gulu Logistics Hub MoWT 2020/21 2024/25 is ongoing Bus Rapid Transit for Greater Kampala Metropolitan 137 Area MoWT 2020/21 2024/25 Undergoing feasibility 138 Reduction of Road Accidents MoWT 2020/21 2024/25 Undergoing feasibility Management and Administration of Motor vehicle 139 Registration in Uganda MoWT 2020/21 2024/25 Undergoing feasibility Promotion of Air and Railway Transport Regulation and 140 Safety MoWT 2020/21 2024/25 Undergoing feasibility Promotion of Local Content in the Works and Transport 141 Sector (large scale production of construction materials ) MoWT 2020/21 2024/25 Undergoing feasibility Establishment of a Training Centre in Luwero for road 142 equipment operators and mechanics. MoWT 2020/21 2024/25 Undergoing feasibility Strengthen and Improve the Central Mechanical Workshop (CMW) as a center for production 143 engineering, industrial training and research. MoWT 2020/21 2024/25 Undergoing feasibility Improvement of public sector efficiency through the implementation of a Government-wide computerized 144 motor vehicle fleet management system MoWT 2020/21 2024/25 Undergoing feasibility Re-development of the Uganda Martyrs Sites at 145 Namugongo for Anglicans MoWT 2020/21 2024/25 Undergoing feasibility Construction of State House Phase II: Office of the 146 Statehouse Comptroller Project MoWT 2020/21 2024/25 Undergoing feasibility Construction of Ministry of Works and Transport 147 Headquarters Building MoWT 2020/21 2024/25 Undergoing feasibility General Building Construction and Rehabilitation 148 Works MoWT 2020/21 2024/25 Undergoing feasibility Strengthening and Improvement of Construction 149 Materials Testing and Materials Research Function MoWT 2020/21 2024/25 Undergoing feasibility Technical Assistance to Improve Regulation of the 150 Construction Industry MoWT 2020/21 2024/25 Undergoing feasibility Support to regulatory bodies, i.e. the Engineers 151 Registration Board and National Building Review Board MoWT 2020/21 2024/25 Undergoing feasibility Review and Update of Standards for Roads and 152 Buildings MoWT 2020/21 2024/25 Undergoing feasibility 153 Kaberamaido to Namasale road MoWT 2020/21 2024/25 NDPIII Project Idea 154 Simu-Kamu-Upper Bulambuli Road MoWT 2020/21 2024/25 NDPIII Project Idea 155 Revival of Buliisa Ship MoWT 2020/21 2024/25 NDPIII Project Idea 156 Construction of selected small bridges UNRA 2020/21 2024/25 NDPIII Project Idea 268 268 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status Community Roads Improvement Project (Total 7,905 Kms; North 1,975Kms, East 2,300Kms, Central UNRA 2020/21 NDPIII Project Idea 157 1,540Kms, West 2,090Kms) 2024/25 158 Rehabilitation of the Meter Gauge Railway URC 2020/21 2024/25 NDPIII Project Idea 159 Bukasa Inland Port MoWT 2020/21 2024/25 NDPIII Project Idea Upgrading of roads from gravel to paved standard using MoWT 2020/21 160 probase technology 2024/25 161 District Roads Rehabilitation Project MoWT 2020/21 2023/24 Multinational Lake Victoria Maritime Comm. MoWT 2020/21 162 &Transport Project 2024/25 163 Capacity Building of Uganda Railways Corporation MoWT 2020/21 2024/25 Integrated Corridor Development Initiative – Lake MoWT 2020/21 164 Victoria Transport Programme – SOP1 & 2 2024/25 Rehabilitation of Tororo-Pakwach railway line, Phase I URC 2020/21 165 (375km) 2024/25 166 Road Authority Offices UNRA 2020/21 2023/24 167 Rehab. of Districts Roads by force on Account UNRA 2020/21 2024/25 168 Construction Equipment Project UNRA 2020/21 2022/23 Support to Ferry and Road Infrastructure Improvement UNRA 2020/21 167 in Kalangala District 2024/25 166 Vehicle End of Life Remanufacturing Project MoWT 2020/21 2022/23 165 Sealing of Low and Medium Volume Roads MoWT 2020/21 2024/25 164 Essential Road Maintenance Equipment MoWT 2020/21 2024/25 165 Development of a Nautical Charting System – PHASE 1 MoWT 2020/21 2024/25 Development of selected roads in Bwindi – Rwenzori UNRA 2020/21 166 Southwest Tourism Circuit: 2024/25 167 Rehabilitation of Fort Portal - Hima road (55 km) UNRA 2020/21 2022/23 168 Development of Regional Aerodromes MoWT 2021/22 2031/32 169 Standard Gauge Railway Project URC 2021/22 2025/26 170 Automated Vessel Registration and Licensing MoWT 2020/21 2024/25 171 Rehabilitation of District Roads MoWT 2020/21 2026/27 172 The River Nile Transport Corridor Project UNRA 2020/21 2024/25 Upgrading Manibe – Yumbe Road (77km) to Paved UNRA 2020/21 173 Standard 2024/25 174 UNRA Retooling Project UNRA 2020/21 2024/25 175 Rehabilitation of Kampala – Jinja Highway (72km) UNRA 2020/21 2022/23 176 Rehabilitation of Mityana – Mubende Road (100km) UNRA 2020/21 2022/23 177 Rehabilitation of Masaka Town Roads (7.3km) UNRA 2020/21 2022/23 Upgrading of Selected Town Roads (20.2km) in UNRA 2020/21 178 Mbarara Municipality to Paved Standard 2022/23 Upgrading of Selected Town Roads (20km) In Mpigi, UNRA 2020/21 179 Butambala and Gomba Districts to Paved Standard 2022/23 ENERGY DEVELOPMENT ONGOING PROJECTS 1 Lira-Gulu-Agago 132KV transmission project MEMD 2016/17 2021/22 Ongoing 2 Mirama - Kabale 132kv Transmission Project MEMD 2016/17 2021/22 Ongoing Grid Expansion and Reinforcement Project -Lira, Gulu, 3 MEMD 2016/17 2021/22 Ongoing Nebbi to Arua Transmission Line 4 Energy for Rural Transformation (ERT) Phase III MEMD 2017/18 2021/22 Ongoing ORIO Mini Hydro Power and Rural Electrification 5 MEMD 2017/18 2020/21 Ongoing Project Kampala Metropolitan Transmission System 6 MEMD 2017/18 2020/21 Ongoing Improvement Project 7 Masaka-Mbarara Grid Expansion Line MEMD 2017/18 2020/21 Ongoing 8 Muzizi Hydro Power Project MEMD 2015/16 2019/20 Ongoing 9 Nyagak III Hydro Power Project MEMD 2015/16 2019/20 Ongoing Airbone Geophysical survey and Geological Mapping of 10 MEMD 2019/20 2020/21 Ongoing Karamoja 11 Nuclear Power Infrastructure Development Project MEMD 2016/17 202/21 Ongoing Grid Rural Electrification Project IDB I - Rural 12 MEMD 2015/16 2020/21 Ongoing Electrification 13 Uganda Rural Electrification Access Project (UREAP) MEMD 2015/16 2020/21 Ongoing 269 269 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status Construction of the 33KV Distribution Lines in 14 MEMD 2015/16 2020/21 Ongoing Kayunga, Kamuli and Kalungi Service Stations Bridging the demand gap through the accelerated rural 15 MEMD 2015/16 2020/21 Ongoing electrification Programme (TBEA) Industrial Substations Upgrade (Lugogo; Mutundwe; Nkonge; Nkenda; Kawanda; Lira; Opuyo; Tororo; 16 Mbarara North; Masaka West; Kawaala, Kampala North MEMD Ongoing Substations; Luzira, Iganga, Mukono, Namanve Upgrade) NEW PROJECTS 1 Uganda Geothermal Resources Development Phase II MEMD 2020/21 2024/25 Concept 2 Grid Extension in North East, Lira and Buvuma Islands MEMD 2020/21 2024/25 Concept 3 Opuyo - Moroto Interconnection Project MEMD 2020/21 2024/25 Concept 4 Kampala-Entebbe Expansion Project MEMD 2020/21 2022/23 Concept Design, Construction and Installation of Uganda 5 National Infrasound Network (DCIIN) MEMD 2020/21 2021/22 Concept 132kV Mbale — Bulambuli — Kapterol Transmission 6 Line. MEMD 2020/21 2021/22 Concept 7 220kV Hoima-Kinyara Project MEMD 2020/21 2022/23 Concept 8 Mirama Kikagati-Nsongezi (132 kV, 37.3km) MEMD 2020/21 2021/22 Concept 220kV Masaka - Mutukula — Mwanza Transmission 9 Line MEMD 2020/21 2022/23 Concept 10 Nkenda-Mpondwe - Beni (D.R. Congo) 220kV MEMD 2020/21 2022/23 Concept Substation Capacity Upgrade Project (Tororo, Lugazi, 11 Mbarara North, Mbarara South and Mirama) MEMD 2020/21 2022/23 Concept 12 Heat flow mapping of volcanic system Eastern Uganda MEMD 2020/21 2024/25 Concept Agago Achwa Kitgum Nimule 190km, 220kV 13 Transmission Project MEMD 2020/21 2024/25 Concept Olwiyo — Nimule (Uganda) —Juba (Sudan) 400kv 14 transmission line project MEMD 2020/21 2024/25 Concept Upgrade of Nkenda, Fort Portal, and Hoima Substations from 132kV to 220kV Project (include 116 lyanda and 15 muzizi) MEMD 2020/21 2024/25 Concept 16 Nuclear Research Reactor Project MEMD 2020/21 2024/25 Concept Grid Reinforcement and Extension Project (Grid Reinforcement of Lira and Nkonge substations, Grid 106 extension to Mubende, Rakai, Bushenyi, and Jinja 17 Industrial Parks) MEMD 2020/21 2024/25 Feasibility 18 Hoima-Kinyara-Kafu MEMD 2020/21 2024/25 Feasibility Mirama -Nsongezi 132kV line and associated 19 substations MEMD 2020/21 2024/25 Feasibility 20 Suply of electricity to SGR MEMD 2018/19 2021/22 Feasibility Substation Capacity Upgrade Project (Tororo, Lugazi, 21 Mbarara North, Mbarara South and Mirama) MEMD 2020/21 2024/25 Feasibility 22 Sukuru Phosphate Transmission Line Project MEMD 2020/21 2024/25 Concept Extension of Transmission Grid to Evacuate excess electricity generated from Tilenga and Kingfisher oil 23 fields MEMD 2020/21 2024/25 Feasibility PROJECT IDEAS 1 Ayago Interconnection Project MEMD 2020/21 2024/25 Concept 2 Fuel Efficiency Initiative MEMD 2020/21 2024/25 Concept 3 Energy Access Scale Up Project MEMD 2020/21 2024/25 Concept 220kV Kapeeka — Kiboga — Hoima Transmission MEMD 4 Line 2020/21 2024/25 Concept 5 Wobulenzi — Kapeeka Transmission Line MEMD 2020/21 2024/25 Concept 6 Nakasongola - Kaweweeta — Kapeeka MEMD 2020/21 2024/25 Concept 132kV double circuit Nakasongola, Kaweweta Kapeeka MEMD 7 transmission line 2020/21 2024/25 Concept 8 Sukulu Phosphate Transmission Line Project MEMD 2020/21 2024/25 Concept Completion of Kampala Metropolitan Area MEMD 9 Improvement 2020/21 2024/25 Concept 10 Oriang Interconnection project MEMD 2020/21 2024/25 Concept 11 Investment in Upstream New Ventures MEMD 2020/21 2024/25 Concept 12 Lugazi Cogeneration Power Plant (25 MW) MEMD 2020/21 2024/25 Concept 270 270 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status 13 Kinyara Cogeneration Power Plant (35 MW) MEMD 2020/21 2024/25 Concept 14 Mayuge Cogeneration Power Plant (23 MW) MEMD 2020/21 2024/25 Concept 15 Small Hydropower Plants (250.3 MW total) MEMD 2020/21 2024/25 Concept 16 Sustainable Mining and Transformation MEMD 2020/21 2024/25 Concept 17 Uganda Geochemical Index Map Project MEMD 2020/21 2024/25 Concept Uranium Exploration for Peaceful and Scientific MEMD 18 Applications in Uganda 2020/21 2024/25 Concept Extension of a Seismological Network to the Albertine MEMD 19 Rift 2020/21 2024/25 Concept Design construction installation of Earthquake Shake MEMD 20 Table 2020/21 2024/25 Concept Petroleum and Motor Waste and used accessories MEMD 21 Management Project 2020/21 2024/25 Concept 22 Geohazard mapping in Uganda MEMD 2020/21 2024/25 Concept 23 Sand exploration for industrial application MEMD 2020/21 2024/25 Concept 24 220kV Nkenda - Buloba Transmission MEMD 2020/21 2024/25 Concept 25 220kV Buloba - Gaba Transmission Line MEMD 2020/21 2024/25 Concept 26 132kV Mutundwe-Gaba-Luzira MEMD 2020/21 2024/25 Concept 27 400kV Kiba Interconnection Project MEMD 2020/21 2024/25 Concept 28 132kV Mukono - Nalubaale Toff — Lugazi MEMD 2020/21 2024/25 Concept 29 Kiba HPP (330 MW) MEMD 2020/21 2024/25 Concept 30 Ayago HPP (840MW) MEMD 2020/21 2024/25 Concept 31 Kingfisher Thermal Power Plant (58 MW) MEMD 2020/21 2024/25 Concept 32 Metal Toxicity in Uganda MEMD 2020/21 2024/25 Concept 33 Albatos Thermal Power (50 MW) MEMD 2020/21 2024/25 Concept Modern Mineral Laboratories Infrastructure MEMD 34 Development Project 2020/21 2024/25 Concept Local Mineral Value Addition (MVA) Benefits MEMD 35 Optimizing Initiative 2020/21 2024/25 Concept Tanzania to Uganda Natural Gas Transmission Pipeline MEMD 36 Project 2020/21 2024/25 Concept 37 Oriang HPP (392 MW) MEMD 2020/21 2024/25 Concept DIGITAL TRANSFORMATION ONGOING PROJECTS Regional Communication Infrastructure Programme 1 NITA-U 2016/17 2021/22 Ongoing (RCIP) NEW PROJECTS 1 IT Shared Platform (GOVNET) NITA-U 2020/21 2024/25 Feasibility PROJECT IDEAS POSTA UGANDA 1 Transforming postal units into service delivery centres NDPIII Project Idea National Postcode and Addressing Geographic POSTA UGANDA 2 Information System NDPIII Project Idea 3 National ICT Initiatives Support Project MoICT&NG NDPIII Project Idea 4 Institutionalization of ICT function in MDAs and LGs MoICT&NG NDPIII Project Idea Broadband Over Powerline for Rural Schools Internet MoICT&NG 5 connectivity. NDPIII Project Idea 6 National Internet Exchange Point. MoICT&NG NDPIII Project Idea 7 E-Waste Management Plant and Collection Centres MoICT&NG NDPIII Project Idea Strengthening National Infrastructure Information MoICT&NG 8 Sharing and Coordination NDPIII Project Idea SUSTAINABLE URBANISATION AND HOUSING ONGOING PROJECTS Uganda Support to Municipal Infrastructure 1 Development Program - Additional Financing (USMID- AF) MLHUD 2020/21 2024/25 Concept NEW PROJECTS 1 Rural Settlements Development Project MoLHUD 2020/21 2024/25 Concept 2 Social Housing Project MoLHUD 2020/21 2024/25 Concept 271 271 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status Establishment of The Uganda Mortgage Refinance 3 Company (UMRC) MoLHUD 2020/21 2024/25 Concept 4 A City A Year Development Project MoLHUD 2020/21 2024/25 Concept Housing Project for Public/Private Sector Workers in 5 Uganda MoLHUD 2020/21 2024/25 Concept Redevelopment of Slums and Informal Settlements 6 Project MoLHUD 2020/21 2024/25 Concept Development of Pilot Eco-City in Kajansi Town 7 Council-GKMA MoLHUD 2020/21 2024/25 Concept 8 Albertine Region Sustainable Development Project MoLHUD 2020/21 2024/25 Concept 9 GKMA Satellite City Development Project MoLHUD 2020/21 2024/25 Concept Uganda Support to Physical Planning, Land Tenure MoLHUD Security and Urban Infrastructure Development in 10 Refugee Host Areas 2020/21 2024/25 Improved tenure governance as a tool to consolidate MoLHUD peace, strengthen food and nutrition security, and 11 eradicate poverty in Northern Uganda 2020/21 2024/25 PROJECT IDEAS 1 GKMA High density affordable housing MoLHUD 2020/21 2024/25 NDPIII Project Idea HUMAN CAPITAL DEVELOPMENT ONGOING PROJECTS Promotion of Green Jobs and Fair Labour Market in 1 MoGLSD 2015/16 2019/20 Ongoing Uganda (PROGREL) IDB funded Technical and Vocational Education and 2 MoES 2017/18 2019/20 Ongoing Training Phase II Naguru 3 Naguru Rehabilitation Referral Hospital 2017/18 2020/21 Ongoing RRH 4 Rehabilitation and Construction of General Hospitals MoH 2012/13 2020/21 Ongoing Construction and Equipping of the International 5 MoH 2016/17 2020/21 Ongoing Specialized Hospital of Uganda 6 Regional Hospital for Paediatric Surgery MoH 2016/17 2020/21 Ongoing Uganda Reproductive Maternal and Child Health 7 MoH 2017/18 2021/22 Ongoing Services Improvement Project 8 Strengthening Capacity of Regional Referral Hospitals MoH 2018/19 2024/25 Ongoing GAVI Vaccines and Health Sector Development Plan 9 MoH 2017/18 2021/22 Ongoing Support East Africa Public Health Laboratory Network Project 10 MoH 2016/17 2020/21 Ongoing Phase II 11 Uganda Sanitation Fund Project II MoH 2017/18 2020/21 Ongoing Institutional Capacity Building in the Health Sector- 12 MoH 2015/16 2018/19 Ongoing Phase II Arua 13 Arua Rehabilitation Referral Hospital 2014/15 2020/21 Ongoing RRH Fort 14 Fort Portal Rehabilitation Referral Hospital Portal 2015/16 2020/21 Ongoing RRH Gulu 15 Gulu Rehabilitation Referral Hospital 2014/15 2020/21 Ongoing RRH Hoima 16 Hoima Rehabilitation Referral Hospital 2015/16 2020/21 Ongoing RRH 17 Jinja Rehabilitation Referral Hospital Jinja RRH 2015/16 2020/21 Ongoing Kabale 18 Kabale Regional Hospital Rehabilitation 2015/16 2020/21 Ongoing RRH Masaka 19 Masaka Rehabilitation Referral Hospital 2014/15 2020/21 Ongoing RRH Mbale 20 Mbale Rehabilitation Referral Hospital 2016/17 2020/21 Ongoing RRH Soroti 21 Soroti Rehabilitation Referral Hospital 2015/16 2020/21 Ongoing RRH 22 Lira Rehabilitation Referral Hospital Lira RRH 2016/17 2020/21 Ongoing Mbarara 23 Mbarara Rehabilitation Referral Hospital 2016/17 2020/21 Ongoing RRH Mubende 24 Mubende Rehabilitation Referral Hospital 2015/16 2020/21 Ongoing RRH 272 272 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status Moroto 25 Moroto Rehabilitation Referral Hospital 2013/14 2020/21 Ongoing RRH 26 UVRI Infrastructural Development Project UVRI 2017/18 2020/21 Ongoing 27 Construction of maternity MoH 2015/16 2019/20 Ongoing Rehabilitation and Equipping of Health Facilities in 28 MoH 2014/15 2018/19 Ongoing Western Region 29 Health Facility Quality of Care Assessment Programme MoH 2015/16 2019/20 Ongoing 30 Global Fund for AIDS, TB and Malaria MoH 2015/16 2020/21 Ongoing 31 Mulago Hospital Complex MoH 2017/18 2020/21 Ongoing 32 LGMSD (former LGDP) KCCA 2011/12 2020/21 Ongoing Butabika 33 Butabika and health centre remodelling/construction 2015/16 2020/21 Ongoing NRH Renovation and Equipping of Kayunga and Yumbe 34 MoH 2016/17 2020/21 Ongoing General Hospitals 35 Uganda Teacher and School Effectiveness Project MoES 2015/16 2020/21 Ongoing 36 Albertine Region Sustainable Development Project MoES 2015/16 2020/21 Ongoing 37 Skills Development Project MoES 2015/16 2020/21 Ongoing Lira 38 Institutional Support to Lira University - Retooling 2017/18 2021/22 Ongoing University 39 Support to NCDC Infrastructure Development NCDC 2017/18 2021/22 Ongoing 40 Support to Soroti University Infrastructure Development Soroti 2016/17 2020/21 Ongoing 41 John Kale Institute of Science and Technology (JKIST) MoES 2015/16 2020/21 Ongoing Busitema 42 Institutional Support to Busitema University - Retooling 2017/18 2021/22 Ongoing University 43 LGMSD (former LGDP) KCCA 2015/16 2019/20 Ongoing Muni 44 Institutional Support to Muni University - Retooling 2017/18 2019/20 Ongoing University 45 Institutional Support to UNEB - Retooling UNEB 2017/18 2019/20 Ongoing 46 Support to Education Service Commission ESC 2013/14 2020/21 Ongoing Retooling of the National Curriculum Development 47 NCDC 2017/18 2021/22 Ongoing Centre Soroti 48 Institutional Support to Soroti University Retooling 2017/18 2019/20 Ongoing University 49 Karamoja Primary Education Project MoES 2011/12 2016/17 Ongoing 50 Nakawa Vocational Training Institute MoES 2009/10 2014/15 Ongoing Improving the Training of BTVET Technical 51 MoES 2012/13 2016/17 Ongoing Instructors, Health Tutors & Secondary Teachers 52 Relocation of Shimoni PTC MoES 2006/07 2014/15 Ongoing Kiira 53 Support to Innovation - EV Car Project 2012/13 2016/17 Ongoing Motors 54 Support to other Scientists MoSTI 2007/08 2016/17 Ongoing 55 African Centres of Excellence II MoES 2017/18 2019/20 Ongoing Uganda National Examination Board (UNEB) 56 UNEB 2015/16 2021/22 Ongoing Infrastructure Development Project 57 OFID Funded Vocational Project Phase II MoES 2017/18 2020/21 Ongoing 58 Schools' Facilities Grant MoES 2015/16 2019/20 Ongoing 59 Development of BTVET MoES 2010/11 2019/20 Ongoing 60 SPEDA II MUK 2015/16 2019/20 Ongoing Support to the Implementation of Skilling Uganda 61 MoES 2015/16 2019/20 Ongoing Strategy (BTC) Improvement of Muni and Kaliro National Teachers 62 MoES 2017/18 2020/21 Ongoing Colleges 63 Support to UMI infrastructure Development UMI 2010/11 2018/19 Ongoing 64 Development of Uganda Petroleum Institute Kigumba MoES 2013/14 2019/20 Ongoing 65 Support to MUBS Infrastructural Dev't MUBS 2015/16 2019/20 Ongoing 66 Development of PTCs Phase II MoES 2015/16 2019/20 Ongoing 67 Food Technology Incubations II MUK 2015/16 2019/20 Ongoing 68 Technology Innovations II MUK 2015/16 2019/20 Ongoing 69 Labour Market Information and Analysis System MoGLSD 2020/21 2024/25 Concept NEW PROJECTS 1 Uganda Heart Institute Infrastructure Development UHI 2020/21 2024/25 Feasibility Establishment of oncology and diagnostic center in Gulu 2 regional referral hospital UCI 2020/21 2021/22 Feasibility 273 273 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status Establishment of oncology and diagnostic center in 3 Mbarara regional referral hospital UCI 2020/21 2021/22 Feasibility Construction of 138 Health Centre IIIs and completion 4 of central warehouse at the National Medical Stores MoH 2020/21 2024/25 Profile Renovation and Equipping of 15 selected Hospitals and 5 the Uganda Heart Institute Project MoH 2020/21 2024/25 Profile 6 Uganda Blood Transfusion Service UBTS 2020/21 2024/25 Profile 7 District Infrastructure Support Programme Project MoH 2020/21 2024/25 Profile Rehabiltation of Hospitals and Supply of Medical 8 Equipement in Northern Region in Uganda MoH 2020/21 2021/22 Profile Italian Support to The Health Sector Development Plan (HSDP) Karamoja Infrastructure Development Project- 9 Phase II MoH 2020/21 2022/23 Profile Mulago Infrastructure Project at Mulago Specialised Women and Neonatal 10 Neonatal Hospital Hospital 2020/21 2024/25 Concept Infrastructural Development Project at Kiruddu National Kiruddu 11 Referral Hospital NRH 2020/21 2024/25 Concept Upgrade of Intensive Care and Radiology Services in 12 Select Health Facilities MoH 2020/21 2024/25 Concept 13 Development of Secondary Education Phase II MoES 2020/21 2024/25 Feasibility SAUDI funded Vocational Education and Training 14 Phase II MoES 2020/21 2024/25 Profile Support to National Health and Department Institutions 15 Phase II MoES 2020/21 2024/25 Profile 16 Establishment of Primary Schools in 1818 Parishes MoES 2020/21 2024/25 Profile Establishment of seed Secondary schools in 387 sub- 17 counties MoES 2020/21 2023/24 Profile 18 Establishment of Primary Schools in 504 Parishes MoES 2020/21 2022/23 Profile Support to Higher Education, Science and Technology 19 (HEST II) Project MoES 2020/21 2024/25 Concept Busitema University Expansion of Science, Technology Busitema 20 and Innovation Infrastructure University 2020/21 2024/25 Concept Gulu University Infrastructure Development Project Gulu 21 Phase I University 2020/21 2024/25 Concept Lira 22 Lira University Infrastructure Development University 2020/21 2024/25 Concept Support to Makerere University by the Government of 23 Korea MUK 2020/21 2024/25 Concept 24 Mutebile Centre of Excellence MUK 2020/21 2024/25 Concept Establishment of ICT Based Education at Makerere 25 University MUK 2020/21 2024/25 Concept Developing Professional & Commercial Livestock 26 Farmers using the SPEDA model MUK 2020/21 2024/25 Concept Mbarara University of Science and Technology 27 Infrastructure Development Project MUST 2020/21 2024/25 Concept National High-Altitude Training Centre (NHATC) 28 Project, Phase Two MoES 2020/21 2024/25 Concept 29 Development and improvement of SNE MoES 2020/21 2024/25 Concept Support to Kabale University Infrastructure Kabale 30 Development University 2020/21 2024/25 Concept Kyambog Support to Kyambogo University Infrastructure o 31 Development University 2020/21 2024/25 Concept Enhancing quality and regional competitiveness of 32 Uganda’s higher education sector MoES 2020/21 2024/25 Concept Skills Development and Establishment Business Incubation Centres for Sustainable Enterprise 2022/202 33 Development and Employment Creation MoTIC 2019/2021 3 Concept 34 Chemical Safety & Security (CHESASE) Project MoGLSD 2020/21 2024/25 Concept 35 Improving Opportunities and Productivity of the Youth MoGLSD 2020/21 2024/25 Concept 36 Jobs for Urban Youth (JOY) MoGLSD 2020/21 2024/25 Concept 37 Promoting Labour Productivity for Women and Girls MoGLSD 2020/21 2024/25 Concept 38 Safe and Productive External Employment Programm MoGLSD 2020/21 2024/25 Concept 274 274 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status Disability Income Support Grants for Inclusive 39 Development MoGLSD 2020/21 2024/25 Concept Strengthening Counselling and Guidance in 40 Employment for School to work transition MoGLSD 2020/21 2024/25 Concept People Centered Action Against Drug and Substance 41 Abuse (Pasa) MoGLSD 2020/21 2024/25 Concept National Integrated Early Childhood Development 42 Programme (NIECD)- MGLSD MoGLSD 2020/21 2024/25 Concept 43 Institutional support to prisons retooling project UPS 2020/21 2024/25 Concept National Integrated Early Childhood Development 44 Programme (NIECD)- MGLSD MoGLSD 2020/21 2024/25 Concept PROJECT IDEAS Improving functionality of existing health facilities 1 including an efficient referral system MoH 2020/21 2024/25 NDPIII Project Idea Establishment of oncology in Arua regional referral 2 hospital UCI 2020/21 2024/25 NDPIII Project Idea Establishment of oncology in Mbale regional referral 3 hospital UCI 2020/21 2024/25 NDPIII Project Idea Physical exercise and nutrition (at community and 4 workplace) MoH 2020/21 2024/25 NDPIII Project Idea Multi-sectoral community Health Promotion & 5 Prevention Project MoH 2020/21 2024/25 NDPIII Project Idea Establishment of a pre-school class in public primary 6 schools MoES 2020/21 2024/25 NDPIII Project Idea 7 Skills for Employment and Productivity (SEP) MoES 2020/21 2024/25 NDPIII Project Idea 8 Training for health specialists MoH 2020/21 2024/25 NDPIII Project Idea 9 Housing for health staff MoH 2020/21 2024/25 NDPIII Project Idea Functionalising neonatal units in all regional referral 10 hospitals MoH 2020/21 2024/25 NDPIII Project Idea Health Facilities Functionality and Referral system 11 Project. MoH 2020/21 2024/25 NDPIII Project Idea Basic Requirements and Minimum Standards (BRMS) 12 for education institutions MoES 2020/21 2024/25 NDPIII Project Idea Fast Track the End of Aids Through Efficient Coordination and Regulation of The Multi-Sectoral 13 Response UAC 2020/21 2024/25 NDPIII Project Idea MoES/ 14 Science and Maths Awareness Project -SMAP MoSTI 2020/21 2024/25 NDPIII Project Idea INNOVATION, TECHNOLOGY DEVELOPMENT AND TRANSFER ONGOING PROJECTS 1 Kiira Motors Corporation MoSTI 2018/19 2021/22 Ongoing 2 Uganda Industrial Research Institute UIRI 2015/16 2019/20 Ongoing 3 Sericulture and Apiculture technology and Innovation MoSTI 2020/21 2024/25 Ongoing NEW PROJECTS Building on achievements of the Mak FTBIC to establish an Agrotechnology and Innovations Park (AgTIP) for improved technology uptake and job 1 creation MUK 2020/21 2024/25 Concept Technological Innovations for Sustainable Economic Development for a Middle-Income Uganda 2 (TISEDMIU) MUK 2020/21 2024/25 Concept Establishment of Municipal Innovation and Technology 3 Hubs (MIT Hubs) MoSTI 2020/21 2024/25 Concept Enhancing Research and Development in Indigenous 4 Medicine MoSTI 2020/21 2024/25 Concept 5 The Shea Industrial Development Project MoSTI 2020/21 2024/25 Concept Establishment of National Science and Technology 6 Parks (NSTPs) MoSTI 2020/21 2024/25 Concept Enhancing Research and Development in Materials 7 Science and Nanotechnology MoSTI 2020/21 2024/25 Concept 8 The National Space Agency/ Program MoSTI 2020/21 2024/25 Concept PROJECT IDEAS 1 Science and Technology Parks MoSTI NDPIII Project Idea 2 Technology and Business incubators (TBIs) MoSTI NDPIII Project Idea 3 Automotive Industrial Technology Park MoSTI NDPIII Project Idea 275 275 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status 4 Banana Industrial Technology Park MoSTI NDPIII Project Idea 5 Bio-sciences Technology Development Centres MoSTI NDPIII Project Idea COMMUNITY MOBILISATION AND MINDSET CHANGE ONGOING PROJECTS Strengthening Social Risk Management and Gender 1 MoGLSD 2018/19 2022/23 Ongoing Based Violence Prevention and Response Project 2 Promotion of Culture and Creative Economy MoGLSD 2017/18 2020/21 Ongoing 3 Social Assistance Grant for Empowerment MoGLSD 2015/16 2019/20 Ongoing 4 Uganda Women Entrepreneurs Fund (UWEP) MoGLSD 2020/21 2024/25 Extended NEW PROJECTS Strengthening Occupational Safety and Health in 1 Uganda (SOSHU) MoGLSD 2020/21 2024/25 Concept 2 Improving Work Culture and Ethics MoGLSD 2020/21 2024/25 Concept 3 Youth Livelihood Programme (YLP) Phase 2 MoGLSD 2019/20 2023/24 Concept 4 Support to women in leadership and decision making MoGLSD 2020/21 2024/25 Concept 5 Accelerating FGM/C Abandonment in Uganda MoGLSD 2020/21 2024/25 Concept Support to Integrated Community Learning for Wealth 6 Creation (SUICOLEW) MoGLSD 2020/21 2024/25 Concept Strengthening culture and creative industries for 7 employment and wealth creation MoGLSD 2020/21 2022/23 Concept 8 National Service Scheme MoGLSD 2020/21 2024/25 Concept Enterprise Programme for Indigenous Ethnic Minorities 9 in Uganda MoGLSD 2020/21 2024/25 Concept 10 Active Ageing programme MoGLSD 2020/21 2024/25 Concept Establishment of Industrial Business Shelters (Jobs for Concept 11 Urban Youth) MoGLSD 2020/21 2024/25 12 Establishment of Creative Industries MoGLSD 2020/21 2024/25 Profile Support to Integrated Community Learning for Wealth MoGLSD 2020/21 2024/25 Concept 13 Creation 14 Establishment of the National Productivity Centre MoGLSD 2020/21 2024/25 Concept National Apprenticeship and Graduate Volunteer MoGLSD 2020/21 2024/25 Concept 15 Scheme Enhancing Women Participation in Public Procurement 16 for income generation MoGLSD 2020/21 2024/25 New Project PROJECT IDEAS None GOVERNANCE AND SECURITY ONGOING PROJECTS 1 Construction of A Maximum-Security Prison UPS 2017/18 2021/22 Ongoing 2 Sustainable Peace for Regional Integration MoIA 2017/18 2021/22 Ongoing Parliamen 3 Rehabilitation of parliament 2017/18 2024/25 Ongoing t Construction of Supreme Court and Court of Appeal 4 MoJICA 2019/20 2022/23 Ongoing Building 5 Strengthening Foreign Affairs MoFA 2019/20 2024/25 Ongoing 6 Strengthening Mission Abroad MoFA 2019/20 2024/25 Ongoing NEW PROJECTS 1 Strengthening of Internal Security MoIA 2015/16 2024/25 Concept 2 Defence Equipment Project MoDVA 2020/21 2024/25 Concept 3 UPDF Peace Keeping Mission in Somalia (AMISOM) MoDVA 2020/21 2024/25 Concept Ministry of Defence and Veteran affairs Retooling Concept 4 Project MoDVA 2018/19 2024/25 5 Strengthening ESO ESO 2016/17 2024/25 Concept 6 Establishment of the Military Referral Hospital MoDVA 2015/16 2024/25 Concept 7 Establishment of a National Service MoDVA 2020/21 2023/24 Concept 9 Food and Beverages Production Projects- Kakiri MoDVA 2015/16 2024/25 Concept 10 Luwero Industries MoDVA 2015/16 2024/25 Concept Revamping Magax2 Armored Vehicle Engineering Concept 11 Centre (MAVEC) MoDVA 2015/16 2024/25 Defence Research, Science and Technology Centre Concept 12 (DRSTC) MoDVA 2015/16 2024/25 13 Construction of MoDVA Headquarters MoDVA 2020/21 2022/23 Concept 276 276 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status 14 Development of UPDAF Physical Infrastructure MoDVA 2015/16 2024/25 Concept 15 Establishment of National Defence College (NDC) MoDVA 2015/16 2024/25 Concept Construction of dormitories for the Institute of Security Concept 16 and Intelligence Studies (ISIS) MoDVA 2015/16 2024/25 Construct a referral hospital- Kitante Medical Centre Concept 17 (KMC) MoDVA 2015/16 2024/25 18 Capacity Building - ISO ISO 2015/16 2024/25 Concept 19 Capacity Building - ESO ESO 2015/16 2024/25 Concept 20 Construction of Jumbo Medical Centre MoDVA 2015/16 2024/25 Concept 21 Construction of ESO HQRS and Field offices ESO 2015/16 2024/25 Concept 22 Purchase of ICT and Specialized Technical Equipment MoDVA 2015/16 2024/25 Concept 23 Construction of Executive Guest houses MoDVA 2015/16 2024/25 Concept Upgrading of External Security Organisation (ESO) Concept 24 international Centre (Katonga) ESO 2015/16 2024/25 Defence Barracks Infrastructure Development Project Concept 25 (30,000 Housing Units) MoDVA 2020/21 2024/25 Installation of the Solar Power plants across UPDF Concept 26 barracks MoDVA 2020/21 2024/25 27 Construction of Strategic Fuel Reserves MoDVA 2020/21 2024/25 Concept Rehabilitation, resettlement and reintegration of Concept 28 physically challenged soldiers MoDVA 2020/21 2024/25 29 Establishment of the sector Veterans SACCO Project MoDVA 2020/21 2024/25 Concept Establishment of 5 Regional Vocational and Technical Concept 30 Training Centers for Military Veterans MoDVA 2020/21 2024/25 Military Veterans Bee Keeping Project in Eastern Concept 31 Region Project MoDVA 2020/21 2024/25 32 UPDF Widows’ Economic Empowerment Project MoDVA 2020/21 2024/25 Concept Establishment of a physical and psychosocial Concept 33 rehabilitation Centre for military veterans MoDVA 2020/21 2024/25 34 Construction of a Forensic Laboratory MoIA 2020/21 2024/25 Concept 35 Construction of Uganda National Military Museum MoDVA 2020/21 2024/25 Concept 36 Construction of the Marines Strategic Sites project MoDVA 2020/21 2024/25 Concept Parliamen Concept 37 Institutional Support to Parliament t 2020/21 2024/25 Parliamen Concept 38 Support to the e-Parliament t 2020/21 2023/24 39 Access to Labour Justice for Workers. MoGLSD 2020/21 2024/25 New project 40 Aliens Registration NIRA 2020/21 2024/25 New project 41 Substitution of aged registration kits NIRA 2021/22 2024/25 New project Registration of the remaining 11.4 million unregistered 42 citizens NIRA 2020/21 2021/22 New project Substitution of National ID cards upon expiry in 2024 and Upgrade of Citizen National ID Card to a Smart 43 Card (e-ID) and creation of the Personal Digital Identity NIRA 2023/24 2024/25 New project Upgrade of the identification system-Integration of the IRIS Recognition biometric technology in the NIRA 44 system (NSIS) NIRA 2021/22 2022/23 New project National Forensic DNA databank Infrastructure 45 development project in Uganda MoIA 2020/21 2024/25 New project 46 Support to the Judiciary Project 2020/21 2024/25 Concept note 47 Construction and Rehabilitation of Courts 2020/21 2024/25 Concept note Uganda Institute for Diplomacy and International 48 Affairs (UIDIA) Buildings MoFA 2020/21 2024/25 Concept International integrated Foreign Service Communication 49 System Project (ICS) MoFA 2020/21 2024/25 Concept 50 National CCTV Network Expansion Project (Classified) MoIA 2018/19 2020/21 Concept 51 Construction of ISO HQRS ISO 2020/21 2024/25 Concept Construction of Lecture rooms, boarding and staff quarter facilities at the Institute of Security and 52 Intelligence Studies-Entebbe ISO 2020/21 2024/25 Concept Construction and Equipping Medical Supplies at Kitante 53 Medical Centre ISO 2020/21 2024/25 Concept Establishment of 5 Regional Model Agricultural Farms 54 for Military Veterans MoDVA 2020/21 2024/25 Concept 277 277 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status PROJECT IDEAS 1 Establish a security information monitoring centre 2020/21 2024/25 NDPIII Project Idea 2 ISO retirement project ISO 2020/21 2024/25 NDPIII Project Idea Construct and develop Tororo Railway and Road MoDVA NDPIII Project Idea 3 polytechnic 2020/21 2024/25 Construction of a Rehabilitation and Psycho-social MoDVA NDPIII Project Idea 4 Support centre for Military Veterans in Uganda 2020/21 2024/25 5 Strengthening Diplomatic and Strategic Foreign Stations 2020/21 2024/25 NDPIII Project Idea PUBLIC SECTOR TRANSFORMATION ONGOING PROJECTS 1 Enhancing Prosecution Services for all (EPSFA) DPP 2017/18 2021/23 Ongoing 2 Detention Facilities Sanitation Project UPS 2017/18 2021/22 Ongoing 3 Law Reform Commission LRC 2015/16 2019/20 Ongoing 4 Revitalisation of Uganda Prisons Industries UPS 2017/18 2020/21 Ongoing Continuing having started in 5 Construction of the IGG Head Office building Project IG 2019/20 2022/23 2019/2020 Continuing having started in 6 Construction of PPDA /URF Headquarters PPDA 2019/20 2024/25 2019/2022 7 Support to Ministry of Public Service MoPS 2020/21 2024/25 Ongoing Equipping of the National Records Centre and Archives 8 MoGLSD 2019/20 2020/21 Ongoing (NRCA) Acquisition, Ownership and Management of 9 2018/19 2022/23 Ongoing Government Office Accommodation 10 ADB Support to UCI UCI 2015/16 2020/21 Ongoing 11 Health Service Commission HSC 2015/16 2020/21 Ongoing 12 Health Systems Strengthening MoH 2010/11 2014/15 Ongoing NEW PROJECTS Arua 1 Institutional Support to Arua Regional Referral Hospital RRH 2020/21 2024/25 Concept Institutional Support to Butabika National Referral Butabika 2 Hospital NRH 2020/21 2024/25 Pre-feasibility Entebbe 3 Retooling of Entebbe Regional Referral Hospital RRH 2020/21 2022/23 Profile Institutional Support to Fort Portal Regional Referral Fortportal 4 Hospital RRH 2020/21 2024/25 Concept Gulu 5 Institutional Support to Gulu Regional Referral Hospital RRH 2020/21 2022/23 Concept Hoima 6 Institutional Support to Hoima Regional Hospital RRH 2020/21 2024/25 Concept Institutional Support to Kabale Regional Referral Kabale 7 Hospital RRH 2020/21 2024/25 Feasibility Institutional Support to Kawempe National Referral Kawempe 8 Hospital NRH 2020/21 2022/23 Profile Institutional Support Project to Kiruddu National Kiruddu 9 Referral Hospital NRH 2020/21 2024/25 Concept 10 Institutional Support to Lira Regional Hospital Lira RRH 2020/21 2024/25 Concept Institutional Support to Masaka Regional Referral Masaka 11 Hospital RRH 2020/21 2024/25 Concept Mbale 12 Institutional Support to Mbale Regional Hospital RRH 2020/21 2024/25 Concept Institutional Support to Mbarara Regional Referral Mbarara 13 Hospital RRH 2020/21 2024/25 Concept 14 Institutional Support to Ministry of Health MoH 2020/21 2024/25 Concept Institutional Support to Moroto Rehabilitation Referral Moroto 15 Hospital RRH 2020/21 2024/25 Concept Institutional Support to Mubende Regional Referral Mubende 16 Hospital RRH 2020/21 2024/25 Concept Mulago National 17 Institutional Support to Mulago Hospital 2020/21 2023/24 Concept National 18 Institutional Support to National Trauma Centre, Naguru TRH 2020/21 2023/24 Concept 278 278 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status Mulago Institutional support to Mulago Specialised Women and Neonatal 19 Neonatal Hospital Hospital 2020/21 2024/25 Concept 20 NMS retooling Project NMS 2020/21 2022/23 Concept Soroti 21 Soroti Regional referral Retooling Project RRH 2020/21 2024/25 Concept 22 Institutional Support to Uganda Cancer Institute UCI 2020/21 2024/25 Concept 23 Institutional Support to UVRI UVRI 2020/21 2024/25 Concept 24 UAC Retooling Project UAC 2020/21 2024/25 Concept 25 Uganda Heart Institute Retooling Project UHI 2020/22 2024/25 Concept 26 Retooling and Capacity Building Project II for MoES MoES 2020/21 2022/23 Concept Gulu 27 Institutional Support to Gulu University University 2020/21 2024/25 Concept 28 Institutional Support to MUBS MUBS 2020/21 2024/25 Concept 29 Makerere University Retooling Project MUK 2020/21 2024/25 Concept Mbarara University of Science and Technology 30 Retooling Project MUST 2020/21 2024/25 Concept Kyambog o 31 Support to Kyambogo University Retooling Project University 2020/21 2024/25 Concept Local Government’s Revenue Collection and 32 Management Information Systems (Log Rev) MoLG 2020/21 2025/26 Concept 33 Institutional Support to Local Government Sector MoLG 2020/21 2025/26 Profile 34 Establishment of Civil Service College Uganda Phase II MoPS 2020/21 2023/24 Concept Strengthening Institutional Effectiveness of Government 35 Through Establishment of Service-Uganda-Centers. MoPS 2020/21 2023/24 Profile Construction of Office Extension Block at Ministry of 36 Public Service MoPS 2021/22 2024/25 Concept Construction of Land, Housing and Urban Development 37 sector House LHUD 2020/21 2024/25 Concept Institutional Support to Ministry of Science, Technology 38 and Innovation MoSTI 2020/21 2024/25 Concept Improvement of public sector efficiency through the implementation of a Government-wide computerized Continuing having started in 39 motor vehicle fleet management system MoWT 2020/21 2024/25 2019/2023 Development of Capacity for Climate Proofing of 40 Infrastructure Investments MWE 2020/21 2024/25 Concept 41 Retooling to Ministry of Water and Environment MWE 2020/21 2024/25 Concept 42 Retooling to NEMA NEMA 2020/21 2024/25 Concept 43 Retooling to NFA NFA 2020/21 2024/25 Concept 44 Support to UNMA UNMA 2020/21 2024/25 Concept 45 Strengthening MGLSD and Its Institutions Phase II MoGLSD 2021/22 2025/26 Concept Strengthening the Capacity of Equal Opportunities 46 Commission EOC 2020/21 2024/25 Concept Strengthening the Labour Market and Analysis System 47 for Uganda MoGLSD 2020/21 2024/25 Concept 48 Establishment of the National Job Center for Uganda MoGLSD 2020/21 2024/25 Concept 49 Support to Office of the Auditor General OAG 2020/21 2024/25 Concept Proposed Central Regional Offices & a Modern 50 Specialized Skills Enhancement Facility 2020/21 202/25 Concept Development of an Integrated system for tracking the 51 implementation of Audit recommendations OAG 2020/21 2022/23 Concept Strengthening Asset Management and Transition to 52 Accrual Accounting (SAMTRAC) 2020/21 2024/25 Concept 53 Support to UBOS UBOS 2020/21 2024/25 Concept 54 Construction of UBOS offices UBOS 2020/21 2022/23 Concept 55 Support to Financial Intelligence Authority FIA 2020/21 2024/25 Concept 56 Support to MoFPED MFPED 2020/21 2024/25 Concept 57 Support to National Authorising Office/DARC MFPED 2020/21 2024/25 Concept 58 Support to PPDA PPDA 2020/21 2024/25 Concept 59 Support to URA URA 2020/21 2024/25 Concept 60 Support to PPDA PPDA 2020/21 2024/25 Concept 61 Support to MFPED MFPED 2020/21 2024/25 Concept 279 279 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status 62 Support to Inspectorate of Government IG 2020/21 2024/25 Concept 63 Support to Directorate of Ethics and Integrity DEI 2020/21 2024/25 Concept 64 Revitalisation of Prison Industries UPS 2017/18 2020/21 Concept Establishment of the National Identification and 65 Registration Authority (NIRA) Headquarters NIRA 2020/21 2022/23 Concept Establishment of 34 Regional Offices for Uganda 66 Registration Services Bureau URSB 2020/21 2024/25 Concept Recruitment of staff to fill the approved structure of 865 67 positions NIRA 2021/22 2022/23 Concept Support to Ministry of Internal Affairs (Government 68 Chemist) MoIA 2020/21 2024/25 Concept Financial Inclusion in Rural Areas (PROFIRA) of 69 Uganda 2020/21 2024/25 Concept 70 Support to National Physical Devt Planning MLHUD 2020/21 2024/25 Concept 71 Support to MLHUD MLHUD 2020/21 2024/25 Concept 72 Support to Uganda Land Commission ULC 2020/21 2024/25 Concept 73 Institutional support to National Planning Authority NPA 2020/21 2024/25 Concept 74 Strengthening Office of the President OP 2020/21 2024/25 Concept Petroleum Authority of Uganda Institutional Support 75 Project PAU 2020/21 2024/25 Concept 76 Construction of the Trade House MoTIC 2020/21 2024/25 Concept 77 Support to Uganda Export Promotion Board EPB 2020/21 2024/25 Concept 78 Support to Electoral Commission EC 2020/21 2024/25 Concept Acquisition of Land and Construction of Government 79 MDA Offices. 2020/21 2024/25 Concept Local Government’s Revenue Collection and 80 Management Information System (LGRMIS) MoLG 2020/21 2024/25 Concept 81 Institutional Support to NIRA NIRA 2020/21 2024/25 Concept Upgrade of the identification system -integration of IRIS NIRA 82 recognition Biometric Technology 2020/21 2024/25 Concept 83 Establishment of the NIRA headquarters NIRA 2020/21 2024/25 Concept 84 Substitution of aged registration kits NIRA 2020/21 2024/25 Concept 85 Implementation of business continuity NIRA 2020/21 2024/25 Concept Fully Populating the NIRA approved structure of 865 NIRA 86 positions 2020/21 2024/25 Concept Strengthening Government Structures, Systems and 87 Procedures through Job Evaluation of the Public Service MoPS 2020/21 2024/25 Concept Rolling out of the Electronic Document and Records 88 Management System (EDRMS) to MDAs and LGs 2020/21 2022/23 Concept Strategic Public Service Institutional Performance 89 Management Project (SPIMP) 2020/21 2024/25 Concept 90 Assistance to Uganda Prisons Service (UPS) UPF 2020/21 2024/25 Concept 91 Institutional Support to Prisons Retooling Project UPF 2020/21 2024/25 Concept 92 Enhancing Prosecution services for All (EPSFA) DPP 2020/21 2024/25 Concept State 93 Support to State House House 2020/21 2024/25 Concept State 94 Refurbishment of State House Complex, Entebbe House 2020/21 2024/25 Concept Readiness Support to Social Development Institutions 95 (RESUSODI) MoGLSD 2020/21 2024/25 Concept Institutional Support for Acquisition of Land and 96 Construction of Staff Housing Units MoH 2020/21 2023/24 Concept Infrastructure for Digitalizing Health Information in the 97 Ugandan Health Sector MoH 2020/21 2021/22 Concept PROJECT IDEAS None REGIONAL DEVELOPMENT ONGOING PROJECTS 1 Northern Uganda Social Action Fund (NUSAF) 3 OPM 2016/17 2019/20 Ongoing NEW PROJECTS 1 Northern Uganda Girls Academy Project LG 2020/21 2024/25 Concept 2 Historical and Cultural Tourism Development Project LG 2020/21 2024/25 Concept 280 280 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status Northern Uganda Industry Ready Youth Skills LG 3 Development Project-Phase 1 2020/21 2024/25 Concept 4 Northern Uganda LG System Strengthening Project LG 2020/21 2024/25 Concept 5 Nile River Water Bulk Transfer Project LG 2020/21 2024/25 Concept 6 Northern Uganda Agro-Industrialization Parks Project LG 2020/21 2024/25 Concept Cross-Regional Production and Consumption Quality 7 Control Project LG 2020/21 2024/25 Concept Northern Uganda Household Incomes and Food Security 8 Enhancement Project LG 2020/21 2024/25 Concept Northern Uganda High-Value Crops (Cashew, Macadamia, Shea, And Pomegranate) And Value Chain 9 Project LG 2020/21 2024/25 Concept 10 Northern Uganda Social System Support Project LG 2020/21 2024/25 Concept Northern Uganda Public University Science, Technology, Engineering, and Innovation Hubs 11 Development LG 2020/21 2024/25 Concept 12 Northern Uganda Small scale irrigation schemes Project LG 2020/21 2024/25 Concept 13 Solar Thermal Electricity (STE) Plants Project LG 2020/21 2024/25 Concept Northern Uganda Science Technical Education and 14 Innovation (STEI) Vocational Secondary Education LG 2020/21 2024/25 Concept Enhancing Income Security in Northern Uganda Through Supporting Community-Based Honey Value 15 Chain LG 2020/21 2024/25 Concept Support to Cassava Production, Processing and 16 Marketing LG 2020/21 2024/25 Concept Development of Coffee Value Chain in West Nile, 17 Acholi and Lango Sub regions LG 2020/21 2024/25 Concept 18 Northern Uganda LG System Strengthening Project LG 2020/21 2024/25 Concept Northern Uganda Regional Farming Development 19 Project (NURFDEP) LG 2020/21 2024/25 Concept Promotion of Clean Energy for improved livelihood for 20 Northern Region LG 2020/21 2024/25 Concept Solar Energy for Rural Transformation (SERT) in 21 Northern Uganda LG 2020/21 2024/25 Concept 22 Support to Security of Land Tenure in Northern Uganda LG 2020/21 2024/25 Concept Development of Tea Value Chain in West Nile, Acholi 23 and Lango Sub regions LG 2020/21 2024/25 Concept Improving Post Harvest Handling in West Nile, Acholi 24 and Lango Sub regions LG 2020/21 2024/25 Concept PROJECT IDEAS Income Poverty Reduction Project targeting; Karamoja, 1 Bukedi, West Nile, Acholi and Busoga MoLG 2020/21 2024/25 NDPIII Project Idea Establishment of Farmers owned Sugar factory in 2 Busoga 2020/21 2024/25 NDPIII Project Idea 3 Labour Intensive Public Works 2020/21 2024/25 NDPIII Project Idea 4 Teso Income Enhancement MoLG 2020/21 2024/25 NDPIII Project Idea 5 Bugisu Income Enhancement MoLG 2020/21 2024/25 NDPIII Project Idea 6 Bunyoro Income Enhancement MoLG 2020/21 2024/25 NDPIII Project Idea 7 Rwenzori Income Enhancement MoLG 2020/21 2024/25 NDPIII Project Idea 8 Luwero Income Enhancement MoLG 2020/21 2024/25 NDPIII Project Idea DEVELOPMENT PLAN IMPLEMENTATION ONGOING PROJECTS Resource Enhancement and Accountability Program 1 MFPED 2019/20 2022/23 Ongoing (REAP) NEW PROJECTS None PROJECT IDEAS None KCCA NDPIII SELECTED PRIORITIES Start Date No Project Title - End Date Status Re-registration of all motor cyles in GKMA within 2019/20 - 1 1year 2024/25 281 281 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status Update of Gazetted and Ungazetted stages is Identifying and gazetting boda-boda stages and 2019/20 - ongoing to revalidate 2 exclusion zones in GKMA 2024/25 gazette Gazetting, Updating and Route asignment of stages within each park is ongoing Gazetting of specific stages for buses, taxis and town 2019/20 - to enable route plans for 3 cabs 2024/25 stages Stakeholder engagement and Public Consultation on the draft statutory Rerouting and restriction of movement of PSV & heavy 2019/20 - instrument for HGV 4 goods vehicles within GKMA 2024/25 restriction is ongoing Construction of the non-motorized transport - railway 2020/21 - 5 corridor 2024/25 Design completed Repair of walkways and 2020/21 - cycle lanes is done routinely 6 Repair of walk ways and cycle lanes 2024/25 based on available budget Traffic Study is being implemented in phases with call order for first phase Prepared focusing on road works within the CBD and how traffic flow should be Modeling the traffic flow in the Central Business 2019/20 - routed pending completion 7 District to identify and implement 1-way routes 2024/25 of Flyover construction. Consultations with associations ongoing dealing in HGV is ongoing Identify and Gazette alternative market space, lorry to identify waiting areas 8 parks, HGV waiting areas 1/11/2019 outside the CBD Started with Kasubi Market, next is Busega and then 9 Enforce removal of illegal roadside markets Kitintale Review and update street parking management 2019/20 - 10 plan/strategy - partial study 2024/25 Concept Design is on going Identification of additional 2019/20 - areas proposed for gazetting 11 Gazette & mark parking slots within Kampala city 2024/25 and marking is ongoing Carry out building inspections to enforce building codes 12 and regulations Inspections have started 13 Review of building occupational permits Ongoing 2019/20 - 14 Construction of the non-motorized transport corridor 2024/25 Pilot Project works on going Jan 2020 to 15 Construction of TCC and signalization of 35 Junctions Ma 2022 Detailed Design on going 2019/20 - Phase 1 commenced with 16 Kampala fly-over Project 2024/25 relocation of services 17 Construction of the NMT Facilities - Walkways Works phased as per budget 2019/20 - Phase 1 of relocation of 18 KIIDP 2 Roads & Junctions - Lot 1 2024/25 services ongoing 2019/20 - Phase 1 of relocation of 19 KIIDP 2 Roads & Junctions - Lot 2 2024/25 services ongoing 2019/20 - Phase 1 of relocation of 20 KIIDP 2 Roads & Junctions - Lot 3 2024/25 services ongoing Consultancy services For Construction works Lot 1 and 2019/20 - Phase 1 of relocation of 21 lot 2 2024/25 services ongoing 2019/20 - Conclusion of Procurement 22 Priority Drainage channels Batch 2 Lot 1 Lubigi channel 2024/25 process Priority Drainage channels Batch 2 Lot 2 Nakamiro 2019/20 - Conclusion of Procurement 23 channel 2024/25 process Consultancy services For Construction works for 2019/20 - Conclusion of Procurement 24 drainage works 2024/25 process Construction of selected community drainage systems: {(a) Makindye (15.758km) – St. Dennis Ssebugwawo - 2019/20 - Extracted from the Kampala 25 Konge, Kikande, Muswangali zone I -Salaama road, 2024/25 Drainage Masterplan 282 282 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status Mzee Ndika, Kumbwa Muswangali zone, Namuwongo drains dicharging into Namwungo channel - 4No., Namuwongo channel either sides from 8th Street Total to Kanyoogoga, Lubega Road drain and crossing behind Calendar Guest House, Katuba Stage, Badogo Stage channel Near Mayenga Abdallah after Kiruddu Hospital opposite Mild care P/S Sign Post, Makindye 2 -Lusaka parish 4drains upstream and downstream, Luwafu - Kirundu, Bukenje (Makindye Kizungu), Kabalagala drain behind Kabalagala Seed School African Academy, White Nile Katwe I (behind SEBA building), Wabigalo community drain towards Ebenezer Central zone, Vivo Energy section on Kayondo Rise Wabigalo, Kabanda, Kabalagala Kalanzi, Katwe Kubitanda, Lubuga II Upper shell section, Kibuli Islamic University (Kakonge road), Ndagana Kisakye to Kansanga primary channel, Nabutiti to Kilombe (360m), Mayor zone Kabalagala, 8th Street (Total Station to Wabigalo), Central Zone drainage channel Wabigalo, James Katumba near ETM, Along after turning to Salaama road 2 sloping drains before Police Post, and St. Ponsiano Kyamula drainage upstream and downstream. (b) Kawempe (19.7km) - Buyera, Kyabatola, Tirupati, Nassanga, Kasawuli, Nyanzi, Bilal, Taibah, Vimba, Ssemuwemba, Ssenjoba, Ssekiranda, & Jamilu; (c) Central (14.6km) - Sserwanga, Rubaga road A, Nanozi, Kakajjo, Kiyindi, Katende,Kyadondo, & Old Kampala P/S; (d) Lubaga (12.9km) - Wamala-Ndeeba rd, Namitala, Wankulukuku-Ssuna, Masanyalazze, Kikandwa, Namungoona, Nakulabye-Kikaya, Kitunzi, & Mapeera well (e) Nakawa (23.9km) - Kiwatule - which starts at the By pass,Summary road Mutungo Biina, Butabika – Lake side-Butabiika channel, Ntinda-Bukoto Channel, Kampala Road –Mutungo-Butabiika, Kitintale channel – just outside African auto along Naguru road, Kisasi Kyanja opposite the serling offices, Naguru go down channel, Mutungo Zone 4} Construction of selected secondary drainage systems: {(a) Kawempe - Nsooba, Kigwanya, Kambale, Nabisasiro, Nakibinge, Bawalakata, Kiyanja, Katanga, & Kiwuunya; (b) Nakawa (22.4km) - Kanywankoko, Nyakana, Valley Drvie, Muteesa II road, Lugogo Sheel Club, Wankoko, Kawooya, Kasokoso, Kiwatule, Mayindo, Kilombe, & Kyambogo; (c) Central/Makindye (32.2km) - UMA Lugogo, Kitante, Kanyogoga, Namuwongo, Kibuli, Kayuga, & Jugula; (d) Lubaga 2019/20 - Extracted from the Kampala 26 (12.2km)- Kawaala, Kosovo-Lubya, Nabisasiro } 2024/25 Drainage Masterplan Construction of selected primary drainage systems {(a) Nakawa - Kinawattaka, (b) Makindye - Ggaba, Kansanga, Mayanja/Kaliddubi; (c) Central (9.7km) - 2019/20 - Extracted from the Kampala 27 Nakivubo; (d) Lubaga (11.3km) - Nalukolongo} 2024/25 Drainage Masterplan Detailed designs and funding commitment Construction of multi storey car park and bus station at 2020/21 - completed pending cabinet 28 the new taxi park 2022/23 approval of the loan Old Taxi Park Detailed Area 2019/20 - Masterplan development to 29 Old Taxi Park Development Project 2024/25 commence in Nov. 2019 2019/20 - Studies using DFID support 30 Redevelopment of USAFI Public Transport Terminal 2024/25 being undertaken The bank granted no objection and the best Sept 2019 evaluated bidder has been to Nov invited for a technical 31 Priority Drainages KIIDP Batch 2 - Lot 1 Lubigi 2020 discussion Sept 2019 The evaluation report is yet to Nov to be submitted to the bank 32 Priority Drainages KIIDP Batch 2 - Lot 2 Nakamiro 2021 for approval 283 283 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status Appraisal stage, 4 year Lot 1 (Identified for AfDB Financing) Financing Agreement. Reconstruction 2020/21 - 33 Wamala Road 2024/25 Design completed 2020/21 - 34 Luwafu Road 2024/25 Design completed 2020/21 - 35 Kabega Road 2024/25 Design completed 2020/21 - 36 Muteesa I Road 2024/25 Design completed 2020/21 - 37 Old Mubende 2024/25 Design completed Canon Apollo Kivebulaya Road/ Albert Cook Road 2020/21 - 38 Junction (J-10) 2024/25 Design completed 2020/21 - 39 Bulange Junction (G2J-12) 2024/25 Design completed 2020/21 - 40 Kayemba/Lukuli Road Incl. J-22 2024/25 Design completed Appraisal stage, 4 year Financing Agreement. Lot 2 (Identified for AfDB Financing) Dualling/Widening 2020/21 - 41 Portbell Road Incl. J-18, J-23 2024/25 Design completed Old Portbell Road/ Spring Road Incl. J-17, J-24, J-25, J- 2020/21 - 42 26 2024/25 Design completed Appraisal stage, 4 year Lot 3 (Identified for AfDB Financing) Financing Agreement. Reconstruction 2020/21 - 43 Eighth Street-Namuwongo Rd 2024/25 Design completed 2020/21 - 44 Fifth Street 2024/25 Design completed 2020/21 - 45 Sixth Street 2024/25 Design completed 2020/21 - 46 Sir Apollo Kaggwa 2024/25 Design completed 2020/21 - 47 Seventh Street 2024/25 Design completed 2020/21 - 48 Muzito Road 2024/25 Design completed 2020/21 - 49 Ssuna Road 1 2024/25 Design completed 2020/21 - 50 Ssuna Road 2 2024/25 Design completed Gaba Road/ Muyenga Road Junction (Kabalagala) (J- 2020/21 - 51 13a&b) 2024/25 Design completed Appraisal stage, 4 year Lot 4 (Identified for AfDB Financing) Financing Agreement. Dualling/Widening 2020/21 - 52 Kasubi - Northern Bypass 2024/25 Design Completed 2020/21 - 53 Kibuye-Busega (A109) 2024/25 Design Completed Upgrading 2020/21 - 54 Kyebando Ring 2 2024/25 Design Completed 2020/21 - 55 Kisaasi Road 2 2024/25 Design Completed 284 284 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status Appraisal stage, 4 year Lot 5 (Identified for AfDB Financing) Financing Agreement. 2020/21 - 56 Green Bus Route (via Ntinda) 2024/25 Design Completed Appraisal stage, 4 year Lot 6 (Identified for AfDB Financing) Financing Agreement. Upgrading 2020/21 - 57 Mugema Road 2024/25 Design Completed 2020/21 - 58 Masiro Road 2024/25 Design Completed Reconstruction 2020/21 - 59 Sentema Road 2024/25 Design Completed 2020/21 - 60 Nsambya Rd / Hanlon Rd Junction (J-1) 2024/25 Design Completed Lot 7 (Needs to be Financed by GOU) Reconstruction 2020/21 - 61 Mpererwe-Kitezi Road 2024/25 Design Completed 2020/21 - 62 Ntinda-Kisasi 2024/25 Design Completed Lot 7 (Needs to be Financed by GOU) 2020/21 - 63 Salama Road 2024/25 Design Completed Lot 8 (Identified for UK Export Financing) 2020/21 - 64 Akii Bua Road 2024/25 Design Completed 2020/21 - 65 Albert Cook Road 2024/25 Design Completed 2020/21 - 66 Balintuma Road 2024/25 Design Completed 2020/21 - 67 Bandali Rise 2024/25 Design Completed 2020/21 - 68 Barnabas Road 2024/25 Design Completed 2020/21 - 69 Baskerville Avenue 2024/25 Design Completed 2020/21 - 70 Bazarabusa Drive 2024/25 Design Completed 2020/21 - 71 Binaisa Road 2024/25 Design Completed 2020/21 - 72 Bombo Road 2024/25 Design Completed 2020/21 - 73 Bombo Road 2 2024/25 Design Completed 2020/21 - 74 Bombo Road 3 2024/25 Design Completed 2020/21 - 75 Boundary Close 2024/25 Design Completed 2020/21 - 76 Bukasa Close 2024/25 Design Completed 2020/21 - 77 Bukoto Crescent 2024/25 Design Completed 2020/21 - 78 Bukoto Street 2024/25 Design Completed 2020/21 - 79 Butikiro Road 2024/25 Design Completed 2020/21 - 80 Buziga Road 2024/25 Design Completed 285 285 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status 2020/21 - 81 Chorley Crescent 2024/25 Design Completed 2020/21 - 82 Chwa II Road 2024/25 Design Completed 2020/21 - 83 Clement Hill Road 2024/25 Design Completed 2020/21 - 84 Colville Street 2024/25 Design Completed 2020/21 - 85 Commercial Road 2024/25 Design Completed 2020/21 - 86 Dewinton Road 2024/25 Design Completed 2020/21 - 87 Diplomate Road 2024/25 Design Completed 2020/21 - 88 Ekobo Avenue 2024/25 Design Completed 2020/21 - 89 Elgon Terrace 2024/25 Design Completed 2020/21 - 90 Factory Close Roads 2024/25 Design Completed 2020/21 - 91 Faraday Road 2024/25 Design Completed 2020/21 - 92 Fort Road 2024/25 Design Completed 2020/21 - 93 Gabunga Road 1 2024/25 Design Completed 2020/21 - 94 Gadafi Road 2024/25 Design Completed 2020/21 - 95 George Street 2024/25 Design Completed 2020/21 - 96 Ginnery Road 2024/25 Design Completed 2020/21 - 97 Haji Musa Kasule Road 2024/25 Design Completed 2020/21 - 98 Hamu Mukasa Road 2024/25 Design Completed 2020/21 - 99 Hannington Road 2024/25 Design Completed 2020/21 - 100 Impala Avenue 2024/25 Design Completed 2020/21 - 101 John Kiyingi Road 2024/25 Design Completed 2020/21 - 102 Kabalega Crescent 2024/25 Design Completed 2020/21 - 103 Kafu Road 2024/25 Design Completed 2020/21 - 104 Kagera Road 2024/25 Design Completed 2020/21 - 105 Kalerwe Market Road 2024/25 Design Completed 2020/21 - 106 Kalungi Road 2024/25 Design Completed 2020/21 - 107 Kamuli Road 2024/25 Design Completed 2020/21 - 108 Kanjokya Street 2024/25 Design Completed 2020/21 - 109 Kansanga Kiwafu Road 2024/25 Design Completed 2020/21 - 110 Kanyike Road 2024/25 Design Completed 2020/21 - 111 Kasozi Road 2024/25 Design Completed 2020/21 - 112 Katalima Road 2024/25 Design Completed 2020/21 - 113 Katonga Road 2024/25 Design Completed 286 286 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status 2020/21 - 114 Kawaala Road 2024/25 Design Completed 2020/21 - 115 Keti Falawo 2024/25 Design Completed 2020/21 - 116 Kigo Road 2024/25 Design Completed 2020/21 - 117 Kigobe Road 2024/25 Design Completed 2020/21 - 118 Kimathi Avenue 2024/25 Design Completed 2020/21 - 119 Kinawataka Road 2024/25 Design Completed 2020/21 - 120 King George VI Way 2024/25 Design Completed 2020/21 - 121 Kintu Road 2024/25 Design Completed 2020/21 - 122 Kira Road 1 2024/25 Design Completed 2020/21 - 123 Kireka Road 2024/25 Design Completed 2020/21 - 124 Kireka Road Link 2024/25 Design Completed 2020/21 - 125 Kisugu Road 2024/25 Design Completed 2020/21 - 126 Kiwafu Road 2024/25 Design Completed 2020/21 - 127 Kiwatule Road 2024/25 Design Completed 2020/21 - 128 Kizanyiro Road 2024/25 Design Completed 2020/21 - 129 Kololo Hill Drive 2024/25 Design Completed 2020/21 - 130 Kome Crescent 2024/25 Design Completed 2020/21 - 131 Konge Road 2024/25 Design Completed 2020/21 - 132 Kyaddondo Road 1 2024/25 Design Completed 2020/21 - 133 Kyaddondo Road 2 2024/25 Design Completed 2020/21 - 134 Kyagwe Road 1 2024/25 Design Completed 2020/21 - 135 Kyagwe Road 2 2024/25 Design Completed 2020/21 - 136 Kyambogo Road 2024/25 Design Completed 2020/21 - 137 Kyambogo Road Stretch 2024/25 Design Completed 2020/21 - 138 Kyanja Road 2024/25 Design Completed 2020/21 - 139 Lance Road 2024/25 Design Completed 2020/21 - 140 Lower Kololo Terrace 2024/25 Design Completed 2020/21 - 141 Lubiri Ring Road 2024/25 Design Completed 2020/21 - 142 Lubowa Road 2024/25 Design Completed 2020/21 - 143 Lumas Road 2024/25 Design Completed 2020/21 - 144 Luthuli Avenue 2024/25 Design Completed 2020/21 - 145 Luthuli Rise 2024/25 Design Completed 2020/21 - 146 Luwafu Road 2024/25 Design Completed 287 287 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status 2020/21 - 147 Mabua Road 2024/25 Design Completed 2020/21 - 148 Mackinnon Road 2024/25 Design Completed 2020/21 - 149 Main Access Road 2024/25 Design Completed 2020/21 - 150 Makamba Road 2024/25 Design Completed 2020/21 - 151 Makerere Primary School Road 2024/25 Design Completed 2020/21 - 152 Makindu Lane 2024/25 Design Completed 2020/21 - 153 Malcom-X Avenue 2024/25 Design Completed 2020/21 - 154 Mapeera Road 2024/25 Design Completed 2020/21 - 155 Market Rise 2024/25 Design Completed 2020/21 - 156 Martin Road 2024/25 Design Completed 2020/21 - 157 Matia Mulumba Road 2024/25 Design Completed 2020/21 - 158 Mawanda Road 2024/25 Design Completed 2020/21 - 159 Mbogo Road 2024/25 Design Completed 2020/21 - 160 Mbogo Road End Connectivity 2024/25 Design Completed 2020/21 - 161 Misaki Lwalanda Road 2024/25 Design Completed 2020/21 - 162 Mpererwe Kiti Road 2024/25 Design Completed 2020/21 - 163 Mugema Road 2024/25 Design Completed 2020/21 - 164 Mulwana Kibira Road 2024/25 Design Completed 2020/21 - 165 Musajja Alumbwa Road 2024/25 Design Completed 2020/21 - 166 Mutabazi Road 2024/25 Design Completed 2020/21 - 167 Mutungo Ring Road 2024/25 Design Completed 2020/21 - 168 Mutunya Road 2024/25 Design Completed 2020/21 - 169 Muwafu Road 1 2024/25 Design Completed 2020/21 - 170 Muwayire Road 2024/25 Design Completed 2020/21 - 171 Muwuliriza Road 2024/25 Design Completed 2020/21 - 172 Muyenga Road 2024/25 Design Completed 2020/21 - 173 Mwanga II Road 2024/25 Design Completed 2020/21 - 174 Naalya Road 2024/25 Design Completed 2020/21 - 175 Nabulagala Road 2024/25 Design Completed 2020/21 - 176 Naguru Avenue 2024/25 Design Completed 2020/21 - 177 Naguru Drive 2024/25 Design Completed 2020/21 - 178 Naguru East Road 2024/25 Design Completed 2020/21 - 179 Naguru Road 2024/25 Design Completed 288 288 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status 2020/21 - 180 Nakasero Lane 2024/25 Design Completed 2020/21 - 181 Namasole Road 2024/25 Design Completed 2020/21 - 182 Namungoona Road 2024/25 Design Completed 2020/21 - 183 Namuwongo Road 2024/25 Design Completed 2020/21 - 184 Nasser Road 2024/25 Design Completed 2020/21 - 185 Ndagire Road 2024/25 Design Completed 2020/21 - 186 Nile Avenue 2024/25 Design Completed 2020/21 - 187 Nsalo Road 2 2024/25 Design Completed 2020/21 - 188 Nsambya Estate Road 2024/25 Design Completed 2020/21 - 189 Nsimbe Road 2024/25 Design Completed 2020/21 - 190 Nviri Lane 2024/25 Design Completed 2020/21 - 191 Old Kampala Road 2024/25 Design Completed 2020/21 - 192 Old Kira Road 2024/25 Design Completed 2020/21 - 193 Old Kira Road (Ntinda To Kiwatule) 2024/25 Design Completed 2020/21 - 194 Parliament Avenue 2024/25 Design Completed 2020/21 - 195 Pilkington Road 2024/25 Design Completed 2020/21 - 196 Press House Road 2024/25 Design Completed 2020/21 - 197 Prince Charles Drive 2024/25 Design Completed 2020/21 - 198 Rashid Khamis Road 1 2024/25 Design Completed 2020/21 - 199 Roscoe Road 2024/25 Design Completed 2020/21 - 200 Rubaga Road 2024/25 Design Completed 2020/21 - 201 Rubeire Road 2024/25 Design Completed 2020/21 - 202 Said Barre Avenue 2024/25 Design Completed 2020/21 - 203 Salama Road 2024/25 Design Completed 2020/21 - 204 Salmon Rise 2024/25 Design Completed 2020/21 - 205 School Road 1 2024/25 Design Completed 2020/21 - 206 Second Street 2024/25 Design Completed 2020/21 - 207 Sekabila Road 2024/25 Design Completed 2020/21 - 208 Semawata Road 2024/25 Design Completed 2020/21 - 209 Sezibwa Road 2024/25 Design Completed 2020/21 - 210 Shimoni Road 2024/25 Design Completed 2020/21 - 211 Sir Apollo Kaggwa Road 1 2024/25 Design Completed 2020/21 - 212 Sir Apollo Kaggwa Road 2 2024/25 Design Completed 289 289 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status 2020/21 - 213 Solent Avenue 2024/25 Design Completed 2020/21 - 214 Speke Road 2024/25 Design Completed 2020/21 - 215 Ssali Bypass 2024/25 Design Completed 2020/21 - 216 Ssenyonga Road 2024/25 Design Completed 2020/21 - 217 St. Kizito Road 2024/25 Design Completed 2020/21 - 218 St. Peter's Kanyanya Road 2024/25 Design Completed 2020/21 - 219 Station Road 2024/25 Design Completed 2020/21 - 220 Tank Hill Bypass 2024/25 Design Completed 2020/21 - 221 Teletubies Road 2024/25 Design Completed 2020/21 - 222 Ternan Avenue 2024/25 Design Completed 2020/21 - 223 Third Street 2024/25 Design Completed 2020/21 - 224 Tufnell Drive 2024/25 Design Completed 2020/21 - 225 Upper Kololo Terrace 2024/25 Design Completed 2020/21 - 226 Upper Naguru East Road 2024/25 Design Completed 2020/21 - 227 Wakaliga Road 2024/25 Design Completed 2020/21 - 228 Wamala Road 2024/25 Design Completed 2020/21 - 229 Wampewo Avenue 2024/25 Design Completed 2020/21 - 230 William Kauna Road 2024/25 Design Completed 2020/21 - 231 Willis Road 2024/25 Design Completed 2020/21 - 232 Windsor Loop Road 2024/25 Design Completed 2020/21 - 233 York Terrace 2024/25 Design Completed 2020/21 - 234 Yusuf Lule Road 2024/25 Design Completed 2020/21 - 235 Zadoki - Spencon Road 2024/25 Design Completed 2020/21 - 236 Zzimwe Road 2024/25 Design Completed Design Completed Lot 8 continued (Identified for UK Export Financing) Atlas Flyover Bridges 2020/21 - 237 Mpererwe 2024/25 Prefeasibility study done 2020/21 - 238 Kamwokya 2024/25 Prefeasibility study done 2020/21 - 239 Kabalagala 2024/25 Prefeasibility study done 2020/21 - 240 Rosebury 2024/25 Prefeasibility study done 2020/21 - 241 Uganda Management Institute 2024/25 Prefeasibility study done 2020/21 - 242 Kawempe Hospital 2024/25 Prefeasibility study done 290 290 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 No Project Title MDA Start Date End Date Status MRT Development 2020/21 - 243 Suburban Passenger Rail East 2024/25 Complete all Designs 2020/21 - 244 Suburban Passenger Rail West 2024/25 Complete all Designs 2020/21 - 245 Metro Kololo CBD/Nansana 2024/25 Complete all Designs 2020/21 - 246 BRT -Pilot 2024/25 Complete all Designs 2020/21 - 247 Cable Car Infrastructure 2024/25 Complete all Designs 2020/21 - 248 LRT-Kira/Gaba 2024/25 Complete all Designs KCCA Transport Infrastructure to be constructed in the Long Term 2020/21 - 249 Duallization of BRT Corridor 2024/25 Complete all designs 2020/21 - 250 BRT- Entebbe extension 2024/25 Complete all designs 2020/21 - 251 BRT- Masaka extension 2024/25 Complete all designs 2020/21 - 252 BRT- Bombo extension 2024/25 Complete all designs 2020/21 - 253 BRT- Gayaza extension 2024/25 Complete all designs 2020/21 - 254 BRT- Jinja extension 2024/25 Complete all designs 2020/21 - 255 LRT-Busega/Portbell 2024/25 Complete all designs 2020/21 - 256 LRT-East Ring 2024/25 Complete all designs 2020/21 - 257 LRT-Compeletion of Ring 2024/25 Complete all designs 2020/21 - 258 LRT- Extension to new neighbourhood 2024/25 Complete all designs 2020/21 - 259 Provision of city bus services 2024/25 Complete all designs 2020/21 - 260 Metro Namanve/CBD 2024/25 Complete all designs 2020/21 - 261 Metro CBD/Queesnsway 2024/25 Complete all designs 2020/21 - 262 Metro -Queensway/Kajjansi 2024/25 Complete all designs Construction and Maintenance Works (identified for GOU Funding) 2020/21 - Road Maintenance Strategy 263 Maintenance of Bituminous roads 2024/25 prepared 2020/21 - Road Maintenance Strategy 264 Maintenance of gravel roads 2024/25 prepared 2020/21 - Road Maintenance Strategy 265 Periodic maintenance (Paved) 2024/25 prepared 2020/21 - New Bridge sites have been 266 Construction of Bridges 2024/25 identified 2020/21 - Road Maintenance Strategy 267 Maintenance of Bridges 2024/25 prepared 2020/21 - Road Maintenance Strategy 268 Road Marking & Road Furniture 2024/25 prepared 2020/21 - Road Maintenance Strategy 269 Road Safety & Traffic Management 2024/25 prepared 2020/21 - Road Maintenance Strategy 270 Maintenance of street lights and traffic junction 2024/25 prepared 2020/21 - Road Maintenance Strategy 271 Transport Studies 2024/25 prepared 291 291 NATIONAL PLANNING AUTHORITY No Project Title MDA Start Date End Date Status 2020/21 - Road Maintenance Strategy 272 Repair and Maintenance of Equipment 2024/25 prepared 2020/21 - Road Maintenance Strategy 273 Purchase of light equipment for road maintenance 2024/25 prepared 2020/21 - Road Maintenance Strategy 274 Supervision/Administration cost for Roads 2024/25 prepared 2020/21 - Road Maintenance Strategy 275 Consultancy Services 2024/25 prepared 2020/21 - Street Lighting masterplan 276 Installation of Solar Street lighting 2024/25 approved 2019/2020 277 Refurbishment of Kololo SS 2020/2021 BOQs prepared 2019/2020 278 Refurbishment of Naguru Katali Primary School 2020/2021 BOQs prepared 279 Refurbishment of Nakivubo Primary School 2021/2022 BOQs prepared 2022/2023- 280 Refurbishment of Kasubi Family Primary School 2023/2024 BOQs prepared Refurbishment of Katwe Primary School and Kansanga 281 P/S 2024/2025 BOQs prepared Construct Four (4) unit storied staff houses in four 2021/2022- 282 Secondary Schools. 2024/2025 Design completed Construct Four (4) unit storied staff houses in two 2021/2022- 283 primary schools 2024/2025 Designed completed Kampala City Lighting and Urban Infrastructure 2020/21 - Feasibility and detailed 284 improvement project 2024/25 design on going Purchase of engineering plant and equipment for 2020/21 - Specifications and BOQs 285 mechanised drainage maintenance 2024/25 ready 2020/21 - Specifications and BOQs 286 Renewal of KCCA vehicle fleet 2024/25 ready Purchase of engineering plant and equipment for 2020/21 - Specifications and BOQs 287 mechanised road maintenance 2024/25 ready Source: NPA 292 292 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

Annex 4: Prioritized Minerals for NDP III and their uses — Prioritized Minerals for NDP III and their uses

Annex 4: Prioritized Minerals for NDP III and their uses Mineral Locations and Primary Uses Secondary Uses Tertiary Uses Element Quantities Phase I Minerals Oil & Gas The Albertine Graben Crude Oil with 1.4b barrels of (Petroleum), Liquified recoverable oil. Petroleum Gas (LPG), Gasoline, Jet Fuel, Kerosene, Diesel, Motor Oil, Asphalt, Sulphur, Fertilizers, Plastics and several other petrochemicals. Marble/Limesto 14.5mil Mtat Hima, 1.Used for making 1.Used in waste 1. Used in the ne Kasese and 11.6mil Mt cement and lime water Manufacture of at Dura, Kamwenge both of which are treatment glass and importantinputsi withferroussu Over 300mil Mt of n the lfate Marble in Karamoja construction 2.Calcium region industry. Supplement in 2.Limeisalsousedas Poultry and soil conditionerin livestockfeeds Agriculture (to 3.Soil reducesoilacidity conditioner to ). neutralize 3.Used (marble) as acidic soils a raw (agricultural materialformarbl lime) e tiles 4.used in making Portland cement, and the white varieties are used to make calcium carbonate powder used in paint and detergents. Gold 5milouncesofgoldin 1Jewelry 1. Usedinawa Used in the Mubende manufacturing rdsand computer industry. DistrictminedbyAngl 2. Financial Gold: statussymb 2. Mobile oUganda Coinage, Bullion, ols phones corporation. Backing 2. Used manufacturing. 1milouncesofGoldest inaerospace imatedat 3. Used MashongainBusheny indentistry idistrict. 500,000 ounces of gold estimatedatTiira,Busi a,and 293 293 NATIONAL PLANNING AUTHORITY Mineral Locations and Primary Uses Secondary Uses Tertiary Uses Element Quantities Over 800,000 ounces estimated at Alupe inBusia. 500,000 ounces of gold at Kampono(Ibanda) 139,000 ounces and possible reserves of 160,000 ounces of gold at Nakabat, Moroto. Sand/Aggregates Diimu & Bukakata, 1. Silica sand is the 1. Used as a Lwera-Masaka; main ingredient in construction Nalumuli Bay & making glass. material. Nyimu Bay and Kome Island-Mukono (The highest quality- 99.95percentSiO ) 2 Iron Ore 50milMtatMuko- 1. Steel production Alloy with other De-sulphurization, Kabale; used in metals to increase chemical 2milMtinMugabuzi- construction its usability modification Mbarara; (housing/housing and 23milMtatBukusuand appliances), homogenization in 45mil Mt at Sukulu- aircrafts. theladles Tororo, 48mil Mt at Buhara-Kabale (newdiscovery), 55mil Mt at Butogota- Kanungu (new discovery),and 8mil Mt in Bufumbira- Kisoro (newdiscovery) Phosphates 230mil tonnes at 1. Used in making pharmaceuticals Used as a Sukulu with grade of of fertilizers. with calcium for polishing agent in 13.1percentP2O5, 2. Used in making building and the manufacture 50mil tonnes at of detergents and repair of bones of toothpaste. Bukusu with grade chemicals. and teeth of 12.8percentP2O5 Copper Kilembe in Kasese 1. Electrical 1. Gunmetals Metal alloy with District (1.77percent conductors 2. Electronic zincornickeltouse Cu, 4.5miltonnes), 2. Coins products in manufacture of Boboong in manufacturing boats/ships that KotidoDistrict, Kitaka don’tcorrode 3. Circuitry in in Bushenyi District manufacturing and siliconchipsforu Kampono in Mbarara se in micro- District Processors to 294 294 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Mineral Locations and Primary Uses Secondary Uses Tertiary Uses Element Quantities operate faster and use lessenergy Phase II Minerals Rare Earth 73.6mil tones of Used to produce Is used in Used as alloys, Elements REEestimated at automotive making high chemicals Sukulu with grade of catalysts and tech electronics catalysts and in La O petroleum cracking products such as glass making 0.32percent 2 5 catalysts, flints for highly 2. Used in glass Aluminous clays that lighters, pigments specialized polishing. are for glass and miniature enrichedinScandium, ceramics and nuclear batteries, Gallium, Yttrium and compounds of lasers repeaters, REE in Makuutu area polishingglass. superconductors estimated at 3Bn and miniature tonnes with grades of magnets. 23percent REEand 27percentAlumina Cobalt Kilembe (0.17percent 1.Coloring 1.Manufacture 1. In special alloys Co, 5.5miltonnes) glasses/tinting of high-end for the aerospace 2.Paint pigments in equipment industry, electronics construction and high-tech industry like medical industry. 3.It is widely used or mobile in cancer devices using treatment, as a its alloys tracer and for 2.Mills and radiotherapy due drilling bits to its resilience in due to its high hardness and temperatures, not resilience in too radioactive high and doesn’t hurt temperatures. patients. Tin 1mil Mt at 2.5percent 1. Used mainly for 1. In metals, it is 1. A niobium-tin tin estimated in coating iron/steel used for alloy is used for Ntungamo and 2.5m Mt tominimizerustin bearings and in superconducting in Isingiro g solder magnets. 2. In making cans 2. Tin piping and for the food valves maintain industry purity in water and beverages. Tungsten Kirwa wolfram Used in making Used in super Its carbides are resources are at armour plate in alloys to form used to make 801,300Mt with military equipment, wear-resistant cutting and average grade Manufacture of coatings. drilling tools, WO filaments for including a new of68.67percent 3 electric bulbs and in ‘painless’ dental 2.1mil Mt and making tungsten- drill which spins possible reserves of carbide for drilling at ultra-high 295 295 NATIONAL PLANNING AUTHORITY Mineral Locations and Primary Uses Secondary Uses Tertiary Uses Element Quantities 355mil Mt at bits speeds. Nyamulirowithoregra deat 0.1percent Granite Bulema-Kanungu; 1. Used in buildings, Bugangari-Rukungiri; bridges, paving, Mutaka-Bushenyi; monuments, and many Lwemivumbo- other exterior projects. Mubende; 2.Used in indoors, Nyabakweri- polished granite slabs Ntungamo; Lunya- and tiles are used in Mukono. countertops, tile floors, stair treads and many other design elements 296 Annex 5a: NDPIII Costing by Programme Total NDPIII Costing 2020/21 - 2024/25 Public Costing 2020/21 - 2024/25 Private Sector Estimates 2020/21 - 2024/25 Programme 2021/22 2022/23 2023/24 2024/25 2021/22 2022/23 2023/24 2024/25 Total 2020/21 2021/22 2022/23 2023/24 2024/25 Total 2020/21 Total 2020/21 4,484 9,187 1,856 1,721 1,732 1,684 2,193 9,468 2,086 1,716 1,699 1,676 2,291 Agro-industrialisation 18,656 3,942 3,438 3,431 3,361 1,068 2,938 692 515 651 524 555 2,194 319 389 505 468 513 Mineral Development 5,132 1,011 904 1,157 992 1,262 3,838 974 683 852 644 685 2,517 364 463 590 524 577 Sustainable 6,355 1,337 1,146 1,441 1,168 Development of Petroleum Resources 2,327 2,207 2,271 2,507 2,881 3,609 617 613 731 774 874 9,509 1,355 1,666 1,954 Tourism Development 11,345 1,776 1,910 2,505 9,505 1,745 1,899 2,088 1,828 1,945 2,397 519 414 449 455 559 Natural Resources, 11,902 2,264 2,313 2,537 2,283 Environment, Climate Change, Land and Water Management 944 1,107 1,566 1,564 1,805 3,137 622 544 653 620 698 4,449 724 762 913 Private Sector 7,586 1,346 1,306 Development 1,286 1,437 1,793 1,863 2,064 2,871 592 481 594 577 627 5,829 890 1,018 1,199 Manufacturing 8,701 1,483 1,499 11,923 24,004 4,220 3,827 5,385 5,203 5,369 26,472 3,988 4,270 6,120 5,741 6,354 Integrated Transport 52,249 8,404 8,467 11,918 11,538 Infrastructure and Services 605 661 1,869 1,436 1,539 5,215 1,403 943 1,159 831 878 2,965 419 571 710 Energy Development 8,181 1,822 1,514 5,108 4,015 616 645 727 814 1,213 11,850 1,776 1,795 1,990 2,394 3,894 297 Digital Transformation 15,865 2,392 2,440 2,717 3,208 1,568 4,356 833 825 952 840 907 2,886 533 516 584 591 661 Sustainable 7,242 1,366 1,341 1,536 1,431 Urbanisation and Housing 4,592 5,418 10,167 11,145 12,836 30,657 4,756 5,901 6,029 6,553 7,418 24,012 5,408 4,456 4,138 Human Capital 54,669 10,164 10,358 Development 431 548 983 1,034 1,238 3,005 536 594 582 602 690 2,156 391 385 401 Innovation, 5,161 927 978 Technology Development and Transfer 3,303 3,827 3,710 4,169 4,809 4,161 781 722 811 865 982 14,824 2,252 2,543 2,899 Community 18,985 3,032 3,266 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Mobilisation and Mindset Change 603 751 7,978 8,654 9,935 39,268 7,646 6,951 7,435 8,052 9,184 2,783 374 513 543 Governance and 42,052 8,020 7,464 Security 20,281 3,334 3,476 3,847 4,158 5,467 20,281 3,334 3,476 3,847 4,158 5,467 - Public Sector Transformation 2,113 2,428 6,201 6,599 7,779 22,013 4,059 3,889 4,228 4,486 5,351 10,490 2,159 1,817 1,973 Regional Development 32,504 6,218 5,706 10,573 1,960 1,883 1,916 1,926 2,888 10,573 1,960 1,883 1,916 1,926 2,888 - Development Plan Implementation 74,244 12,432 13,651 14,742 15,374 18,045 74,244 12,432 13,651 14,742 15,374 18,045 - Interest Payments Due 33,233 84,408 99,203 276,878 49,674 49,764 55,114 56,356 65,970 134,803 23,557 23,295 26,666 28,052 Total Budget 411,681 73,232 73,059 81,780 297 Annex 5b: NDPIII Total Costs (Uganda Shillings, percent of GDP) Total NDPIII Costing 2020/21 - 2024/25 Public Costing 2020/21 - 2024/25 Private Sector Estimates 2020/21 - 2024/25 Programme 2020/21 2021/22 2022/23 2023/24 2024/25 2020/21 2021/22 2022/23 2023/24 2024/25 2020/21 2021/22 2022/23 2023/24 2024/25 Agro-industrialisation 2.5% 1.9% 1.7% 1.5% 1.8% 1.2% 1.0% 0.9% 0.7% 0.9% 1.3% 1.0% 0.8% 0.7% 0.9% Mineral Development 0.6% 0.5% 0.6% 0.4% 0.4% 0.4% 0.3% 0.3% 0.2% 0.2% 0.2% 0.2% 0.3% 0.2% 0.2% Sustainable Development of Petroleum Resources 0.8% 0.6% 0.7% 0.5% 0.5% 0.6% 0.4% 0.4% 0.3% 0.3% 0.2% 0.3% 0.3% 0.2% 0.2% Tourism Development 1.1% 1.1% 1.1% 1.1% 1.1% 0.4% 0.3% 0.4% 0.3% 0.3% 0.9% 0.9% 1.0% 1.0% 0.9% Natural Resources, Climate Change, Environment, Land and Water Management 1.4% 1.3% 1.3% 1.0% 1.0% 1.1% 1.1% 1.0% 0.8% 0.8% 0.3% 0.2% 0.2% 0.2% 0.2% Private Sector Development 0.8% 0.7% 0.8% 0.7% 0.7% 0.4% 0.3% 0.3% 0.3% 0.3% 0.5% 0.4% 0.5% 0.4% 0.4% Manufacturing 0.9% 0.8% 0.9% 0.8% 0.8% 0.4% 0.3% 0.3% 0.3% 0.2% 0.6% 0.6% 0.6% 0.6% 0.6% Integrated Transport Infrastructure and Services 5.3% 4.7% 5.9% 5.1% 4.7% 2.7% 2.1% 2.7% 2.3% 2.1% 2.5% 2.4% 3.0% 2.5% 2.5% Energy Development 1.1% 0.8% 0.9% 0.6% 0.6% 0.9% 0.5% 0.6% 0.4% 0.3% 0.3% 0.3% 0.4% 0.3% 0.3% Digital Transformation 1.5% 1.4% 1.4% 1.4% 2.0% 0.4% 0.4% 0.4% 0.4% 0.5% 1.1% 1.0% 1.0% 1.1% 1.5% Sustainable Urbanisation and Housing 0.9% 0.8% 0.8% 0.6% 0.6% 0.5% 0.5% 0.5% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.3% Human Capital Development 6.4% 5.8% 5.1% 4.9% 5.1% 3.0% 3.3% 3.0% 2.9% 2.9% 3.4% 2.5% 2.1% 2.0% 2.1% Innovation, Technology 298 Development and Transfer 0.6% 0.5% 0.5% 0.5% 0.5% 0.3% 0.3% 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% Community Mobilisation and Mindset Change 1.9% 1.8% 1.8% 1.8% 1.9% 0.5% 0.4% 0.4% 0.4% 0.4% 1.4% 1.4% 1.4% 1.5% 1.5% Governance and Security 5.1% 4.2% 4.0% 3.8% 3.9% 4.8% 3.9% 3.7% 3.6% 3.6% 0.2% 0.3% 0.3% 0.3% 0.3% Public Sector Transformation 2.1% 1.9% 1.9% 1.8% 2.2% 2.1% 1.9% 1.9% 1.8% 2.2% 0.0% 0.0% 0.0% 0.0% 0.0% Regional Development 3.9% 3.2% 3.1% 2.9% 3.1% 2.6% 2.2% 2.1% 2.0% 2.1% 1.4% 1.0% 1.0% 0.9% 1.0% Development Plan Implementation 1.2% 1.1% 1.0% 0.9% 1.1% 1.2% 1.1% 1.0% 0.9% 1.1% 0.0% 0.0% 0.0% 0.0% 0.0% Interest Payments Due 7.8% 7.7% 7.3% 6.8% 7.1% 7.8% 7.7% 7.3% 6.8% 7.1% 0.0% 0.0% 0.0% 0.0% 0.0% 298 NATIONAL PLANNING AUTHORITY Annex 5c: NDPIII Total Costs by Function Sector 2020/21 - 2024/25 2020/21 Wage Recurrent Devt Total Wage Recurrent Devt Total Agriculture 1,045 2,431 4,765 8,241 206 351 1,112 1,669 Lands, Housing & Urban Development 77 580 1,184 1,841 21 89 231 340 Energy & Mineral Development 403 1,004 6,954 8,361 170 152 2,362 2,684 Works & Transport 417 4,769 31,139 36,325 63 694 5,602 6,359 Information & Communication Technology 302 1,829 1,677 3,808 49 176 302 527 Trade and Industry 139 687 376 1,202 28 125 120 273 Education and Sports 16,631 9,584 3,018 29,233 2,311 1,059 625 3,996 Health 5,353 5,945 1,440 12,737 1,191 1,139 487 2,816 Water & Environment 264 796 9,252 10,312 54 95 1,686 1,835 Social Development 29 802 219 1,050 6 177 71 255 Defence & Security 3,887 6,997 10,456 21,341 812 1,360 2,606 4,778 Justice, Law and Order 4,179 10,480 3,925 18,584 632 1,484 1,090 3,207 Public Sector Management 1,041 4,237 2,034 7,312 143 308 574 1,025 Accountability 1,701 11,875 2,206 15,782 235 1,618 618 2,471 Legislature 449 4,364 371 5,184 54 625 74 753 Public Administration 582 7,779 1,185 9,545 88 1,436 151 1,676 Science, Technology and Innovation 80 468 696 1,244 22 66 212 299 299 Tourism 21 1,516 74 1,611 2 216 15 234 Local Government 2,313 4,689 1,919 8,921 473 811 762 2,046 Interest Payments Due - 74,244 - 74,244 - 12,432 - 12,432 Total Budget 38,912 155,076 82,890 276,878 6,561 24,414 18,700 49,674 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 299

Annex 5c: NDPIII Total Costs by Function (Continued) — c: NDPIII Total Costs by Function (Continued)

Annex 5c: NDPIII Total Costs by Function (Continued) Sector 2021/22 2022/23 2023/24 2024/25 Wage Recurrent Devt Total Wage Recurrent Devt Total Wage Recurrent Devt Total Wage Recurrent Devt Total Agriculture 204 371 1,024 1,599 192 420 873 1,486 189 495 752 1,437 253 793 1,004 2,050 Lands, Housing 6 37 337 381 8 59 399 466 21 183 110 315 21 212 107 339 & Urban Development Energy & 38 100 1,422 1,561 51 159 1,690 1,900 72 272 746 1,091 71 321 734 1,126 Mineral Development Works & 81 699 4,994 5,774 114 1,188 6,855 8,157 80 991 6,826 7,897 80 1,196 6,862 8,138 Transport Information & 29 125 421 575 19 101 510 631 82 513 179 775 122 913 266 1,301 Communication Technology Trade and 28 104 63 195 28 125 64 217 28 151 64 243 28 182 64 274 Industry Education and 2,905 1,609 733 5,247 3,320 1,919 801 6,041 3,784 2,283 430 6,496 4,311 2,713 429 7,453 Sports Health 1,067 1,169 398 2,635 896 1,015 192 2,104 1,025 1,200 182 2,407 1,173 1,421 181 2,775 300 Water & 41 99 1,982 2,121 49 144 2,148 2,341 60 209 1,720 1,989 60 250 1,716 2,026 Environment Social 6 117 37 160 6 140 37 183 6 167 37 210 6 200 37 242 Development Defence & 757 1,031 1,937 3,725 749 1,222 1,914 3,886 748 1,462 1,908 4,119 821 1,922 2,090 4,833 Security Justice, Law and 914 1,742 733 3,389 897 2,048 718 3,662 878 2,400 701 3,979 857 2,806 683 4,347 Order Public Sector 185 585 645 1,416 200 756 425 1,382 211 955 161 1,327 301 1,633 229 2,163 Management Accountability 354 1,835 590 2,779 350 2,175 537 3,062 359 2,670 218 3,248 402 3,576 244 4,222 Legislature 100 708 75 883 99 841 75 1,015 98 1,000 74 1,172 98 1,190 73 1,360 Public 121 1,191 253 1,565 117 1,351 245 1,713 116 1,574 243 1,933 140 2,228 292 2,659 Administration Science, 15 88 214 316 13 83 105 201 15 106 84 205 16 125 82 223 Technology and Innovation Tourism 5 249 15 269 5 294 15 313 4 347 15 366 4 410 14 429 Local 469 740 315 1,524 460 869 283 1,612 457 1,036 281 1,774 454 1,232 278 1,965 Government Interest - 13,651 - 13,651 - 14,742 - 14,742 - 15,374 - 15,374 - 18,045 - 18,045 Payments Due Total Budget 7,322 26,252 16,190 49,764 7,575 29,654 17,885 55,114 8,236 33,389 14,731 56,356 9,219 41,367 15,384 65,970 NATIONAL PLANNING AUTHORITY 300 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25

Annex 6: NDPIII Programme Level Results Framework — NDPIII Programme Level Results Framework

Annex 6: NDPIII Programme Level Results Framework Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 1. Agro - industrialization 1.1 Increase Agricultural Real GDP 3.8 5.2 5.4 5.6 5.8 6.0 growth rate (percent) 1.2 Increase total Export Total 0.935 1.217 1.482 1.818 2.23 2.7 value of priority5 Coffee 0.492 0.619 0.747 0.900 1.084 1.307 agricultural commodities Tea 0.091 0.136 0.171 0.216 0.270 0.338 (USD Billion) Fish 0.146 0.280 0.353 0.446 0.558 0.698 Diary 0.077 0.101 0.118 0.149 0.186 0.214 Meat 0.003 0.004 0.004 0.005 0.006 0.007 Maize 0.125 0.076 0.089 0.103 0.119 0.136 1.3 Increase the cumulative water for 39.3 54.32 55.72 57.52 66.32 76.82 production storage capacity (Mcm) 1.4 Increase area under formal 15,147 19,776 19,938 20,200 23,762 27,424 irrigation (ha) 1.5 Increase the percentage of 86.7 87.7 88.2 88.7 89.2 89.7 functional water for production facilities 1.6 Increase the proportion of 69 75.20 80.16 84.13 87.30 89.84 households that are food secure 1.7 Reduce the proportion of 68 67 65 60 57 55 households dependent on subsistence agriculture as a main source of livelihood (percent) 1.8 Number of jobs created in the 50,000 75,000 150,000 125,000 100,000 agro-industrial value chain 1.9 Labour productivity in agriculture 2,212 2,527 2,656 2,757 2,919 3,114 (USD) 1.10 Post-harvest losses for priority 37 33 30 25 18 15 commodities ( percent) 1.11 Storage capacity (MT) 550,000 750,000 1,050,000 1,250,000 1,350,000 1,500,000 2. Mineral Development 2.1 Increase volume of copper 300 600 1,000 1,500 2,000 produced (metric tonnes) 2.2 Increase the value of refined Gold 450 550 700 800 900 1,000 exports 2.3 Increase the number of trained and 108 120 140 160 180 200 skilled Geoscientists 2.4 Increase the value of investment 0.8 0.9 1.2 1.5 1.7 2.0 into the exploration and processing of the selected minerals 2.5 Contribution of processed minerals 5.0 5.5 5.8 6.2 6.6 7.1 to total manufactured exports ( percent) 2.6 Number of people employed 1.6 1.8 2.0 2.2 2.4 2.6 mineral sector (million) 2.7 Increase the Volume of imported 700,000 600,000 450,000 300,000 200,000 125,000 Iron and Steel (tonnes) 5 Processed coffee, cotton, dairy, meat, horticulture, tea and fish 301 301 NATIONAL PLANNING AUTHORITY Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 2.8 Reduce the value of imported Iron 370 253 214 175 136 97 and Steel (USD Mn) 2.9 Reduce the volume of imported 75,000 49,198.3 42,169.9 36,145.7 30,982 18,750 inorganic fertilizers (tonnes) 2.10 Reduce the Value of imported 26 18.1 15.4 12.8 10.1 7.5 inorganic fertilizers (USD Mn) 3. Sustainable development of Petroleum Resources 3.1 Amount of revenue from oil and 62.98 60 63 64 65 265 gas sector (UGX Bn) 3.2 Increase the contribution of the Oil 3 0 0 0 2 5 & Gas to GDP ( percent) 3.3 Increase the proportion of 20 22 24 26 28 30 investment in oil and gas to GDP (percent) 3.4 Increase Ugandans employed in 3,400 4,250 5,210 8,300 15,000 20,000 the oil and gas and gas related industries 3.5 Increase contracts awarded to local 50 70 80 90 150 200 companies 3.6 Investment in Oil and Gas (Bn) 0.984.41 4.2 4.6 2.2 1.1 3.7 Local Content ( percent) 3.8 3.925 4.05 4.175 4.3 4. Tourism Development 4.1 Increase the contribution of 7.3 7.8 7.9 8 8.1 8.5 Tourism to GDP ( percent) 4.2 Increase annual Foreign exchange 1.45 1.5840 1.631 1.689 1.774 1.862 earnings (USD - Bn) 4.3 More Ugandans visiting key tourist 646,099 710,709 767,566 828,971 895,289 966,912 attractions (Museums, National Parks, Source of the Nile and UWEC) 4.4 Increase average Inbound tourism 1,036 1,223 1,292 1,361 1,431 1,500 revenues per leisure tourist (USD) 4.5 Increase the number of 212,616 115,000 171,500 260,000 281,760 301,483 International Tourist arrivals from the U.S., Europe, Middle East, Japan and China6 4.6 Increase the number of direct flight 6 8 10 12 14 15 routes to Europe and Asia 4.7 Increase tourism arrivals 1,402,409 785,349 1,126,976 1,706,563 1,877,220 2,102,486 4.8 Increase contribution of tourism to 6.3 6.8 7.1 7.5 8 8.5 total employment, percent 5. Natural resources, Environment, Climate change, Land and Water management 5.1 Percentage of titled land 21 24 29 32 35 40 5.2 Increase water Ground water 76 77 78 79 80 81 permit holders Surface water 78 78.5 79.5 80 80.5 82 complying with Waste water 63 64 65 66 67 68 permit conditions discharge at the time of spot permit check conditions 6 German speaking (Germany, Austria, Switszerland), US & Canada, China, Japan, Middle East (UAE, Gulf states) 302 302 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 5.3 Increase water water bodies 60 61 62 63 65 samples Supplies/wate 65 68 71 74 80 complying with r collection national standards point 5.4 Increase land area covered by 9.1 10.3 11.5 12.7 13.9 15 forests, percent 5.5 Increase the proportion of land 8.9 9.08 9.20 9.32 9.45 9.57 area covered by wetlands, percent 5.6 Increase permit holders complying 40 50 60 70 80 90 with ESIA conditions at the time of spot check, percent 5.7 Increase accuracy of 60 66 72 78 84 90 Meteorological Information, percent 5.8 Increase the percentage of 30 40 50 60 70 80 automation of weather and climate network 5.9 Average Annual Change in a 1.39 1.31 1.23 1.15 1.07 1.0 Green House Gas (GHG) emissions (MtCO2e) 5.10 Reduce the number of deaths and 150 130 110 90 70 50 missing persons and directly affected persons attributed to disasters per 100,000 population 5.11 Increase the proportion of green 25 28 32 35 36 38 jobs to total jobs 6. Private sector development 6.1 Reduce the informal sector 56.6 52.9 51.7 50.4 49.2 48.1 6.2 Increase in non-commercial 1.5 1.997 2.196 2.416 2.657 2.923 lending to the private sector in key growth sectors 6.3 Increase the proportion of public 30 50 50 50 50 50 contracts and sub-contracts that are awarded to local firms 6.4 Increase the value of exports 5,390 5,952 6,295 6,674 7,018 7,356 7. Manufacturing 7.1 Increase the share of manufactured 12.3 13.53 14.88 16.37 18.01 19.81 exports to total exports, percent 7.2 Increase the industrial sector 26.5 27.6 27.8 28.1 28.3 28.6 contribution to GDP ( percent) 7.3 Increase contribution of 15.8 15.8 15.9 16.1 16.3 16.4 manufacturing to industrial GDP 7.4 Increase the share of 9.0 9.7 9.9 10.1 10.3 10.4 manufacturing jobs to total formal jobs ( percent) 7.5 Increase share of labour force 12.6 employed in the industrial sector ( 12.9 13.0 13.2 13.3 13.4 percent) 7.6 Increase manufacturing value 8.3 8.6 9.0 9.4 9.6 10.0 added ( percent of GDP) 8. Integrated transport infrastructure and services 303 303 NATIONAL PLANNING AUTHORITY Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 8.1 Reduce average Within 4.14 3.98 3.86 3.74 3.62 3.5 travel time GKM (min/km) A Within other N/A 2.4 2.3 2.2 2.1 2.0 Cities National 1.13 1.0 1.0 1.0 1.0 1.0 roads District Roads 1.0 1.0 1.0 1.0 1.0 1.0 Inland water 18 16.8 15.6 14.4 13.2 12 transport (MW to PB in Hrs) Passenger rail 0.75 0.70 0.65 0.60 0.55 0.5 services Freight rail 19 17 15 13 13 10 services Mombasa - K’la (Days) 8.2 Freight Inland (on 1,130 1,125 1,120 1,114 1109 1,000 transportation Road): costs (per ton per Murrum km) (UGX) Inland (on 802 741.6 681.2 620.8 560.4 500 Road): tarmac Inland (on 0.04 0.038 0.036 0.034 0.032 0.03 Rail): USD Inland (on 500 460 420 380 340 300 water): UGX From coast to 0.77 0.034 0.702 0.668 0.634 0.60 Kampala (on Road) - USD From coast to 0.05 0.046 0.042 0.038 0.034 0.03 Kampala (on Rail) (in USD): From coast 0.06 0.056 0.052 0.048 0.044 0.04 (MW) to Kampala (PB) on water - USD 8.3 Stock of transport Paved 4,971 5,717 6,163 6,609 7,055 7,500 infrastructure National Roads (km) Paved urban 1,253 1,348 1,448 1,548 1,648 1,748 roads (km) Permanent 262 302 342 382 422 462 way /railway road (Km) 8.4 Freight Cargo - Export 9,168 10,084 11,001 11,918 12,835 13,752 Central Corridor Import 4,142 4,556 4,969 5,384 5,798 6,212 Export 10,243 11,268 12,292 13,317 14,341 15,365 304 304 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 8.5 Freight Cargo Import 25,360 27,896 30,433 32,969 35,505 38,041 Northern Corridor 8.6 Construction of Roll-on Roll-off 5 5 6 6 7 7 vessels (international) 8.7 Construction of domestic (Ro’Pax) 10 11 12 13 14 15 passenger ferries 8.8 Unit cost of Upgrading 3.1 2.98 2.86 2.74 2.62 2.5 building transport roads to infrastructure, per paved Km standard (Mn/per Km) Rehabilitation 1.8 1.79 1.78 1.77 1.76 1.75 / reconstruction of paved roads (Mn/per Km) Average cost 40 38 36 34 32 30 for construction of unpaved/ gravel road (in million) Rehabilitation 5 4.9 4.8 4.7 4.6 4.5 of metre gauge rail infrastructure (Bn/ Km) 8.9 Development of Aids to 0 1 2 3 4 5 Navigation 8.10 Development of search and rescue 200,000 196,000 192,000 188,000 184,000 180,000 facilities (USD) 8.11 Average Tarmac roads 18 20 20 20 20 20 infrastructure life – (years) span First class 2 2 2 2 2 2 murram (years) 8.12 Fatality per 100,000 vehicles (road 26 25 24 23 22 21 transport) 8.13 Total fatalities (Water transport) 160 138 116 94 72 50 9. Sustainable Energy Development 9.1 Increase proportion of the 24 30 35 40 50 60 population with access to electricity 9.2 Increase primary energy 15.20 16.0 17.0 18.0 19.0 21.74 consumption (million tonnes of oil equivalent) 9.3 Increase per capita electricity 100 150 200 300 400 578 consumption (kwh per capita) 305 305 NATIONAL PLANNING AUTHORITY Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 9.4 Increase transmission capacity of 2,354 2,600 3,000 3,400 3,800 4,354 High voltage7 transmission lines (km) 9.5 Increase grid reliability (percent) 90 90 90 90 9.6 Increase energy generation 984 1,884 1990.4 2493.6 2996.8 3,500 capacity (MW) 9.7 Increase the share of clean energy 15 20 25 30 40 50 used for cooking 9.8 Reduce share of biomass Energy 85 80 75 70 60 50 used for cooking ( percent) 10. Digital transformation 10.1 Increase ICT Internet 25 30 35 43 46 50 penetration penetration Digital 56 79 79 83 87 95 Terrestrial TV signal coverage Population 74 79 79 83 87 90 covered by broadband services (percent) 10.2 Reduce the cost Unit cost of 237 200 140 100 90 70 of ICT devices 1Mbps/month and services of internet Unit cost of 100,000 95,000 87,000 75,000 70,000 60,000 low entry smart phones (UGX) Cost of a 1,600,000 1,550,000 1,300,000 1,000,000 9,000,000 800,000 computer - UGX 10.3 Increase fixed broad band 167,000 177,000 225,000 270,000 300,000 322,000 connectivity 10.4 ICT contribution to GDP 2.0 2.67 2.89 3.13 3.40 3.69 10.5 ICT directly and indirectly created 30,000 jobs 10.6 Proportion of government services 20 25 40 61 72 80 online 10.7 National broadband coverage with 31 41 51 61 71 100 minimum speed of 8 Mbps 11. Sustainable urbanization and housing 11.1 Decrease the average travel time 4.14 3.98 3.86 3.74 3.62 3.5 per km in GKMA (min/km) 11.2 Increase the proportion of titled 21 24 29 32 3 40 land, percent 11.3 Increase paved urban roads 1,253.69 1,348 1,448 1,548 1,648 1,748 11.4 Increase proportion of paved urban 6.1 7.32 8.54 9.76 10.98 12.2 roads to total urban roads, percent 7 High voltage refers to 132kV-400kV 306 306 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 11.5 Decrease urban unemployment 14.41 13.5 12.3 11.3 10.3 9.4 rate ( percent) 11.6 Proportion of urban population 60 58 55 50 44 40 living in slums and informal settlements 11.7 Reduce the acute Housing deficit 2.2 2.112 2.024 1.936 1.848 1.76 (Million) 11.8 Improve the efficiency of solid 30 33.2 36.8 40.8 45.2 50.1 waste collection 12. Human Capital Development 12.1 Increase Quality adjusted years of 4.5 4.6 5.0 5.3 6.0 7 schooling 12.2 Increase average years of 6.1 6.8 7.3 8.0 9.5 11 schooling 12.3 Reduced prevalence of under 5 28.9 27 25 23 21 19 Stunting, percent 12.4 Improve unionization density, 6 9 11 12 17 20 percent 12.5 Increase proportion of labour force 34.5 35 35.5 36 40 55 transitioning into decent employment, percent 12.6 Increase percentage of employers 40 44 48.4 52.6 58 65 satisfied with the training provided by the TVET institutions, percent 12.7 Increase ratio of STEI/ STEM 2:5 3:5 3:5 3:5 3:5 3:5 graduates to Humanities 12.8 Reduce Maternal Mortality ratio 336 311 286 261 236 211 (per 100,000) 12.9 Reduced Under 5 Mortality Rate 64 42 39 35 33 30 (Per 1,000) 12.10 Total Fertility Rate 5.4 5.0 4.9 4.8 4.6 4.5 12.11 Reduce mortality Malaria 13.0 11 10 8 7 6 due to Malaria, AIDS related 5.0 4 3.5 3 2.5 2 AIDS and TB TB 4.0 3.5 3 2.5 1.8 1 12.12 Reduce NCD rates Hypertension 3.2 3 2.8 2.6 2.4 2.5 Diabetic rate 2.5 2.4 2.3 2.2 2.1 2 Cancer 1.8 1.6 1.5 1.4 1.3 1.2 Alcohol abuse 5.8 5.6 5.4 5.2 5.0 4 12.13 Reduce teenage Pregnancy 25 22 20 18 16 15 12.14 Increase access to Rural 73 75.4 77.8 80.3 82.6 85 safe water supply Urban 74 79.2 84.4 89.6 94.8 100 12.15 Increase access to Improved 19 23 28 32 37 45 basic sanitation toilet coverage Improved 34 36 38 42 46 50 handwashing facility 307 307 NATIONAL PLANNING AUTHORITY Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 12.16 Reduce prevalence of child 13 12 11 10 9 8 disability 12.17 Reduce unmet need for Family 28 26 22 18 14 10 Planning 12.18 Increase proportion of workplaces 20 25 30 35 40 45 with occupational health services 12.19 Increase Gender gap index 0.523 0.57 0.6 0.65 0.7 0.8 12.20 Reduce GBV prevalence 56 50 45 40 35 30 12.21 Improve compliance to the gender 95 100 100 100 100 100 & equity certificate 12.22 Increase proportion of population 44 48.2 52.4 56.6 60.8 65 with access to Universal health care, percent 12.23 Proportion of population with 5.0 7.5 10.0 12.5 15.0 20 access to social insurance, percent 12.24 Improve Football 77 76 74 72 70 65 Uganda’s ranking Netball 6 6 5 4 4 1 in niche sports Athletics 9 8 7 6 6 4 (football, Rugby 18 18 17 16 15 4 athletics, netball, boxing, rugby etc.) 12.25 Increase proportion of workplaces 20 25 30 35 40 45 with health wellness programme, percent 12.26 Percentage share of national labour 39.5 36.7 34.9 33.2 31.5 29.9 force engaged in subsistence 13. Innovation, Technology Development and transfer 13.1 Global Innovation Index ( percent) 25.32 27.00 29.00 31.00 33.00 35 13.2 Gross Expenditure on R&D 0.4 0.5 0.6 07 0.8 1.0 (GERD) as a percent of GDP 13.3 Business enterprise sector 0.01 0.05 0.09 0.13 0.16 0.21 spending on R&D ( percent of GDP) 14. Community Mobilization and Mindset Change 14.1 Increase percentage of Households 60 70 75 80 85 90 participating in public development initiatives 14.2 Increase proportion of the 30 50 60 70 80 90 population informed about national programmes 14.3 Improve percentage of vulnerable 1.5 2.6 3.7 5.2 7.8 10 and marginalized persons empowered 14.4 Increase Level of 69 80 85 85 90 95 participation in participation government in electoral programmes processes (voter turnout) Households’ 10 20 30 40 50 60 participation 308 308 THIRD NATIONAL DEVELOPMENT PLAN (NDPIII) 2020/21 - 2024/25 Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 in saving schemes ( percent) 14.5 Improve staffing Central Level 84 86 88 90 92 94 levels for national guidance and LG Level 86 88 90 92 94 96 community mobilization functions at all levels 14.6 Reduce incidence Corruption 26 35 of unethical perception 28.7 30.1 31.6 33.2 behavior index (corruption, crime Crime rate per 612 460 400 350 306 306 rate, theft, 100,000 immorality) persons 14.7 Level of satisfaction with public 50 60 70 80 90 90 service delivery 14.8 Government effectiveness index -0.5 -0.39 -0.11 0 0.004 0.01 15. Governance and security 15.1 Reduce percentage of backlog 18 14.2 13.2 12.2 11.3 10.4 cases in the system 15.2 Increase disposal rate of cases 60 64.6 67.1 69.7 72.3 75 15.3 Increase percentage of districts 67.5 with one stop frontline JLOS 76.3 79.5 82.8 86.3 90 service points 15.4 Improve Corruption Perception 26 35 28.7 30.1 31.6 33.2 Index 15.5 Increase percentage expenditure on 0.01 0.05 0.05 0.08 0.09 0.1 R&D 15.6 Increase expenditure on R&D by 7 10.3 7.6 8.2 8.8 9.5 Security Sector (Ugx Billion) 15.7 Increase Democratic index 6.5 7.0 7.3 7.6 7.9 8.6 15.8 Attain a 25 percent enrolment in 0 5 10 15 20 25 the National service 15.9 Proportion of eligible voters registered 15.10 Increase percentage of citizens 80 90 90 90 90 90 engaged in electoral process 15.11 Improve Peace Index 2.196 1.9 1.9 1.8 1.8 1.72 15.12 Improve level of implementation 40 50 70 80 90 100 of the Settlement Transformative Agenda, percent 16. Public Sector transformation 16.1 Increase Government effectiveness -0.58 0.01 -0.08 0.08 0.05 0.03 index 16.2 Improve Global competitiveness 48.9 55 51.0 52.0 53.1 54.2 index 16.3 Reduce corruption perception 26 20 28.7 30.1 31.6 33.2 index 17. Regional Development 1. Bukedi 43.7 40.7 37.7 34.8 31.8 25.8 309 NATIONAL PLANNING AUTHORITY Key results Baseline Targets FY2017/18 2020/21 2021/22 2022/23 2023/24 2024/25 17.1 Reduce poverty 2. Busoga 37.5 34.4 31.4 28.3 25.2 19.1 in the lagging 3. Elgon 34.5 32.7 30.8 29.0 27.2 23.5 regions of 4. West Nile 34.9 33.4 31.9 30.5 29.0 26.0 Uganda 5. Karamoja 60.2 57.2 54.2 51.2 48.1 42.1 6. Acholi 33.4 30.9 28.4 25.9 23.3 18.3 7. Teso 25.1 24.2 23.3 22.4 21.5 19.7 8. Bunyoro 17.3 15.5 13.6 11.8 10.0 6.3 17.1 Increase average monthly 416,000 401,667 482,297 548,408 587,840 632,044 household income (UGX) 17.2 Improve proportion of households 45 50 55 60 65 70 reporting better living conditions, percent 18. Development Plan implementation 18.1 Attain maximum alignment 60 100 100 100 100 100 between the Annual Budgets and the NDPIII at national and programme level 18.2 Improve achievement of NDPIII 0 20 40 60 70 80 targets, percent 18.3 Maintain single digit Inflation rate 3.4 5.49 6.08 5.66 5.29 5.00 18.4 Improve Private sector credit 11.2 13.62 16.28 16.45 16.98 17.01 (percent GDP) 18.5 Increase GDP growth rate 6.2 4.51 5.99 6.38 7.00 7.2 18.6 Increase Revenue to GDP ratio 12.958 13.08 13.29 13.69 14.38 15.43 18.7 Increase Proportion of direct 12 15.6 18.4 25 28 30 budget transfers to local government 18.8 Improve on World Bank Statistical 74.4 75.2 76.64 77.76 78.88 80.0 Capacity Indicator (WBSCI) score 18.9 Government Effectiveness index -0.5 -0.39 -0.11 0 0.004 0.01 18.10 Proportion of NDPIII baseline 60 65 74 85 90 100 indicators up-to-date & updated 8 FY2018/19 310 NATIONAL PLANNING AUTHORITY

Annex 7

Annex 7 Table 5.7: Uganda: Balance of payments, FY 18/19 - FY 2024/25 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Current account (mm US$) -2748 -2573 -3838 -2804 -2691 -2566 -2029 Trade balance -2866 -2326 -2866 -2435 -2326 -2184 -1605 Exports, f.o.b. 3962 3537 3566 3828 4077 4451 5152 Of which: coffee 416 489 540 598 639 683 729 Imports, f.o.b. -6828 -5862 -6432 -6263 -6403 -6635 -6757 Oil imports -980 -856 -560 -634 -724 -807 -803 Government infrastructure-related imports -635 -310 -452 -447 -341 -327 -271 Services (net) -715 -1230 -1420 -1121 -1159 -1230 -1331 Other (net) -715 -1230 -1420 -1121 -1159 -1230 -1331 Credit 2078 1529 793 1313 1434 1481 1534 Debit -2792 -2759 -2213 -2434 -2593 -2712 -2865 Primary income (net) -916 -558 -698 -714 -721 -762 -780 Of which: interest on public debt -114 -122 -226 -232 -264 -298 -319 Secondary income 1749 1540 1146 1466 1517 1611 1687 Private transfers 1598 1416 1001 1320 1423 1536 1654 o/w workers remittances (credit) 1369 1186 551 859 1048 1132 1222 Official transfers 150 124 145 145 94 76 33 o/w Budget support (including HIPC) 72 43 35 0 0 0 0 Other official transfers (capital gains tax) 78 81 110 145 94 76 33 Capital and financial account 2529 1669 3269 3064 3082 3094 2269 Capital account 100 75 163 222 132 99 23 Of which: project grants 100 75 163 222 132 99 23 Financial account 2430 1594 3106 2841 2950 2995 2246 Foreign direct investment (net) 1217 988 858 1176 1217 1396 1430 Portfolio investment (net) -168 -268 -105 -109 -113 -118 -122 Other investment 1375 873 2352 1772 1845 1715 937 Public sector (net) 1073 844 2104 1717 1698 1687 1497 SDR allocation 0 0 0 0 0 0 0 Build-up (-)/drawdown (+) of petroleum fund 0 0 0 0 0 0 0 Loan disbursements 1399 1126 2495 2252 2470 2538 2439 Budget support (loans) 50 331 1073 885 711 490 0 Project support (loans) 1348 795 1422 1367 1759 2048 2439 Non-concessional borrowing 0 0 0 0 0 0 0 Amortization due -244 -207 -320 -465 -718 -800 -899 Commercial banks (net) 263 -230 38 -126 -3 -86 -592 Other private (net) 39 259 210 181 150 115 32 Errors and omissions 287 640 0 0 0 0 0 Overall balance 69 -264 -569 260 392 528 240 Financing -69 264 569 -260 -392 -528 -240 Central bank net reserves (increase = –) -65 261 569 -260 -391 -528 -240 Use of Fund credit 0 0 0 0 0 0 0 Exceptional financing -3 3 0 0 -1 0 0 Memorandum items: 0 0 0 0 0 0 0 Gross official reserves 3263 2959 2391 2650 3041 3569 3809 Months of next year's imports of goods and services 4.4 4.1 3.3 3.5 3.9 4.5 4.6 Net donor support 1534 1235 2624 2381 2546 2595 2452 o/w Budget support (loans and grants incl. HIPC) 123 374 1107 885 711 490 0 Project support (loans and grants) 1412 861 1516 1496 1835 2104 2452 Current account balance (percent of GDP) -7.8 -7.0 -9.7 -6.5 -5.7 -4.9 -3.5 Current account balance (excluding grants) -10.0 -8.9 -9.0 -8.2 -7.7 -6.4 -5.4 Trade balance (percent of GDP) -8.2 -6.3 -7.2 -5.6 -4.9 -4.2 11.6 Exports (percent of GDP) 17.2 13.7 11.0 11.9 11.6 11.4 11.6 Imports (percent of GDP) 27.4 23.4 21.8 20.1 19.0 18.0 16.8 Source: Bank of Uganda 311 NATIONAL PLANNING AUTHORITY Planning House , Clement Hill Road Plot 17B, P.O. Box 21434.Kampala - Uganda Tel: +256 414 250 229 / 0312 310 730 Learn more at: www.npa.ug www.facebook.com/NPAUGANDA #@NPA_UG For any queries Email: research@npa.ug.

Third National Development Plan (NDPIII) 2020/21 – 2024/25

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