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The African Development Bank has approved a sovereign loan of US$229.5 million to the Republic of Uganda to finance phase one of the Kampala-Jinja Expressway project. The financing will reinforce Uganda’s position as a regional transit hub, supporting its ambition to propel its economy into middle-income status by 2020.

Approved by the Board of the African Development Bank on Wednesday, 31 October 2018, the loan supports the Government’s Vision 2040 agenda. It will co-finance, with the European Union and Agence Francaise de Developpment, $400 million which will pave the way for private sector financing of the remaining $800 million.

The financing will support Uganda’s second National Development Plan 2015-2020, which aims to strengthen the country’s competitiveness for sustainable wealth creation, inclusive growth and jobs creation. Uganda’s road rehabilitation plans are anchored on its 15-year National Transport Master Plan (NTMP 2008-2023), aimed at facilitating efficient movement of passengers and freight across the country to support growth objectives.

Total project cost is estimated at US$1.55 billion, with financing from sovereign and non- sovereign facilities. The facility will finance infrastructure development, project implementation support and community livelihoods improvement activities along the proposed 95-kilometre expressway. Over 2,000 direct and indirect jobs will be created during the construction and operational phases of the project. When completed, the Kampala-Jinja Expressway will boost national economic productivity, competitiveness, regional trade and integration. It will also alleviate congestion in and around Ugandan’s capital, Kampala and reduce travel time between the country’s two main economic hubs.

Scheduled to be managed over the next 30 years (including an five-year construction period) under a concession-based Public Private Partnership (PPP) arrangement, the project comprises of two phases: the Kampala-Jinja Mainline Expressway and Kampala Southern Urban Bypass (KSB), collectively known as the Kampala-Jinja Expressway PPP Project.

The project also has a human capital development component, focused on skills development for Uganda and East Africa. By 2028, over 200 PPP specialists (gender inclusive) are expected to have been trained to work in the region’s transport sector, under a graduate / professional work placement scheme

The Board applauded the innovative financing structure which should serve as model to be replicated across the continent. The Bank’s leadership in transport infrastructure development, which is attracting interest and alliances with several development partners, was also acknowledged by the Board .

Uganda’s road network is the country’s predominant mode of transport and a key enabler of her trade and economic activities within the East African Community. The Kampala-Jinja corridor has experienced accelerated development over the last 20 years, and currently experiences traffic overload, registering over 1,000 vehicles per hour per lane, with consistent breakdown of traffic flows, according to a 2017 study conducted by the Uganda National Roads Authority.

The expressway is located along Uganda’s Northern Corridor, a strategic route within the EAC, linking Uganda, Rwanda, Burundi, Democratic Republic of Congo (DRC) and South Sudan with Kenya’s Mombasa maritime port. It is easily the most important route on the national road network, taking 30 percent of international traffic to Burundi, 60 percent to Rwanda and almost 100 percent to Uganda. It also carries over 90 percent of Uganda’s imports and exports.

The project aligns with the Bank’s Ten-Year Strategy (2013-2022) and Uganda Country Strategy Paper 2017–2021, under its “Infrastructure Development for Industrialization” pillar. It is consistent with three of the Bank’s High 5 priorities: “Integrate Africa”, “Industrialize Africa” and “Improve the quality of life of the people of Africa.”

The African Development Bank is one of the leading Development Partners in the country’s transport sector, coordinated by the Uganda Transport Sector Development Partners Group (UTSDPG).

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Vice President Edward Kiwanuka Ssekandi and the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), in the presence of USAID Mission Director Joakim Parker, launched today a nationwide campaign to combat aflatoxins that contaminate improperly handled grain, causing severe health complications, including liver cancer and stunting.  The campaign, supported through USAID’s Feed the Future program, aims to provide advice and informational materials for farmers, processors, traders and consumers to improve post-harvest handling methods and food quality.

“The partnership between our governments and peoples has a long history,” said Mission Director Parker. “Our work in the cereal and grains value chains alerted us to the severity of the problem, and we eagerly supported the development of communication materials for aflatoxin awareness and control to mitigate further contamination.”

Nearly half of Uganda’s agricultural exports are found to be contaminated with aflatoxin, reducing export earnings and causing sickness in people who consume these products.  Aflatoxins are particularly dangerous for small children in the first 1,000 days of life.  Poor handling and storage is a major cause for aflatoxin contamination.  To combat this, USAID collaborated with MAAIF and other key stakeholders in the grains sub-sector to develop easy-to-understand information and education materials to enhance farmers’ methods of post-harvest handling and storage.

The launch is part of the United States’ effort in partnership with Uganda to increase agricultural productivity, strengthen Uganda’s economic competitiveness, and improve household nutrition.

USAID’s Feed the Future Uganda Enabling Environment for Agriculture Activity program assists policymakers to improve the policy, legal and regulatory frameworks that affect agricultural production, processing and trade.

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Uganda’s forests are the backbone of a strong nature-based tourism industry and are some of the most bio-diverse in Africa. These forests serve as a carbon sink, protecting the watersheds critical for livelihoods and jobs. But these forests are threatened. The rate of forest loss in Uganda, at 2.6% annually, is among the highest in the world. Recent estimates put the overall cost of environmental degradation equivalent to 17% of gross domestic product (GDP).

Realizing that the depletion of renewable natural resources represents a constraint to sustainable growth and poverty reduction, Uganda’s leaders recently joined the World Bank-led Wealth Accounting and the Valuation of Ecosystems Services (WAVES) partnership. With WAVES support, Uganda will be able to build a system to quantify the value of its natural resources using the United Nation’s global standard for the methodology for Natural Capital Accounting (NCA). The priority will be better information on forests and wetlands, which will help the country monitor progress toward the Sustainable Development Goals. The NCA will also integrate information on natural resources into broader discussion on Uganda’s planning.

“The government recognizes the importance of building statistical systems that support better management of our natural resources,” said Keith Muhakanizi, the Permanent Secretary and Secretary to the Treasury at the launch of Uganda WAVES on October 30, 2018. “The future of growth of Uganda will depend on sound management of our natural capital and we need to establish a credible set of natural accounts if we are to do that.”  This information, Muhakanizi said, will also be used to prepare Uganda’s Third National Development Plan.

Natural capital is wealth

According to a 2018 World Bank report The Changing Wealth of Nations, close to one-third of wealth in low-income countries such as Uganda comes from natural capital. Agriculture is key, which underscores the importance of sustainable resource management. A reliance on rain-fed agriculture, in the face of climate change, poses a risk to growth, incomes and exports. Forest loss, land degradation, soil fertility loss, wetland reclamation, and fisheries declines are all major issues.

With WAVES’ help, the government of Uganda can use NCA to address vital questions. For example, NCA for forests and wetlands can be used to identify the natural assets and ecosystem benefits that contribute to the national economy, identify users of forests and wetlands and examine how other sectors in the economy affect Uganda’s natural asset base.

Currently, information on natural capital is often produced by different agencies without any coordination. An accounting system that harmonizes and integrates it in the national system is being seen as valuable.

Tony Thompson, World Bank Country Manager for Uganda, welcomed the government’s commitment to go beyond the conventional macroeconomic indicators like GDP and look at natural and human capital investments.

“For a country like Uganda, most of its wealth is made up of its natural capital,” Thompson said. “But you need to invest in human capital while protecting natural capital, so that you are passing on a richer legacy for the next generation.”

The WAVES Uganda program will build capacity, promote learning and support analysis and valuation of natural assets and ecosystem services. “Natural capital accounting is a tool that is useful for enabling governments to transition towards inclusive and green growth,” said Ross Hughes, World Bank Senior Natural Resources Specialist and task team leader. “Lessons and experience from other countries will help Uganda in this journey.”

Launched in 2010, WAVES brings together UN agencies, governments, international institutes, nongovernmental organizations and academics to mainstream natural capital accounting into development planning processes and economic accounts of government based on internationally-agreed standards.

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The Republic of Uganda and the European Union reconfirmed their close partnership in a Political Dialogue meeting held on October 24, 2018, hosted by His Excellency President Yoweri Museveni at State House in Entebbe. The meeting was held in accordance with Article 8 of the Cotonou Partnership Agreement and forms part of regular political dialogue between Uganda and the European Union on global, regional and national issues of mutual interest. The discussion was held in an open, cordial and constructive atmosphere.

The EU delegation was led by the European Union Ambassador to Uganda, H.E. Attilio Pacifici, who was joined by the Heads of Mission of Austria, Belgium, the Czech Republic, Denmark, France, Germany, Ireland, Italy, the Netherlands, Poland, Sweden, and the United Kingdom. Also in attendance were the Prime Minister, the Minister of Foreign Affairs, the Minister of Finance, the Minister for Security, the Attorney General and the Secretary General of the NRM, as well as senior government officials.

The topics for the political dialogue ranged from business climate, trade and investment to matters of rule of law as well as regional issues, with the European Union thanking Uganda for its positive role in promoting regional peace and security. The EU also expressed its gratitude to His Excellency the President of Uganda and Ministers in the Government for regularly being available for a constructive political dialogue.

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In 2016, the Government of Uganda established a National Coordination Framework for the implementation of the Sustainable Development Goals (SDGs). As part of efforts to operationalize this framework, the Government of Uganda, through the Office of the Prime Minister, in partnership with the United Nations System, on October 23 launched the national roadmap for creating an enabling environment for the implementing the Sustainable Development Goals (SDGs).

The roadmap identifies strategic priority actions for implementation within the period of the second National development Plan. While launching the roadmap, Rt. Hon. Prime Minister, Dr. Ruhakana Rugunda stated: “This roadmap is a testament that the Government of Uganda is committed to ensuring that the development aspirations of the citizens of Uganda are met, by all means possible.”

Hon. Rugunda said that roadmap creates an enabling environment for all government entities to implement the SDGs in a coordinated manner. They will therefore be required to use the roadmap to plan, cost and advocate for the SDGs as well as report on the progress, to enable tracking of Uganda’s efforts to attain sustainable development. Ms. Rosa Malango, the UN Resident Coordinator noted that although Uganda had shown significant progress through aligning its national development plans and budgets to the SDGs, there was need to accelerate progress towards sustainable development.

“I am glad the Government of Uganda took several bold steps before other countries could on Agenda 2030, starting with mainstreaming of the SDGs into the Second National Development Plan (NDPII), before the Agenda 2030 was officially launched,” she said.

Due to these efforts, a recently published report by the UN Sustainable Development Solutions Network on SDG Index and Dashboards provides country performance on the historic Agenda 2030 and the SDGs. The report ranked Uganda 125th out 156 countries with SDG index score of 54.9, higher than the Sub Saharan Africa regional average of 52.8.

“This is a good base line for us to accelerate progress,” Ms. Malango added adding that she hoped that the roadmap would re-energize on efforts to deliver the 2030 agenda for the benefit of all Ugandans.

Speaking on behalf of the Local Development Partners’ Group, Mr. Joakim Parker, USAID Mission Director, called for prioritizing investments in social sectors to reverse the stagnating or even declining performance on key human capital indicators and to achieve key SDGs.

“We all agree that Uganda’s future depends on a healthy and educated population, and Uganda simply cannot afford not to invest more in its young population”, Mr. Parker said.

Representatives from the Civil Societies and Private Sector also attended the launch event and called on government to use all available resources efficiently, ensure justice and address the high population growth in order to attain the 2030 agenda. With this Roadmap, Uganda continues its commitment to leading the way in implementing the SDGs which began in 2015 when it led the UN General Assembly to adopt the goals.

Please find the roadmap here: Uganda SDGs Roadmap.

The remarks by the LDPG can be found here.

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The U.S. government and the American people are demonstrating their continued support for the refugee response in Uganda with nearly $83 million in additional humanitarian assistance by the end of the U.S. fiscal year 2018.  This new funding includes a $40 million contribution to the United Nations World Food Programme, a $29 million contribution to the Office of the United Nations High Commissioner for Refugees, and nearly $14 million to support the work of other international and non-governmental organizations.  Including this new funding, the U.S. provided a total of $139 million in fiscal year 2018 in support of the Uganda refugee response.

This emergency humanitarian aid, provided by the U.S. government, will help meet the immediate food, protection, shelter, water and sanitation, psychosocial, and other life-saving assistance needs of refugees and host communities.  This assistance prioritizes procurement of food from Ugandan and regional farmers.  The U.S. also continues to leverage development and humanitarian resources to build self-reliance and resilience among the refugees and Ugandans in refugee-hosting districts, including support for livelihoods and nutrition.

Through this funding, the U.S. government also supports the United Nations’ implementation of biometric registration and a new biometric-based food distribution system, which will help elevate standards of accountability, transparency, safety, and dignity in refugee food assistance.

Uganda is the largest refugee-hosting country in Africa.  Relief agencies and the Government of Uganda continue to work together to meet life-saving needs of refugees, including those who have fled conflict in South Sudan and the Democratic Republic of the Congo.

The United States is the largest single donor of humanitarian assistance in Uganda, supporting emergency food and nutrition assistance, medical care, water, prevention of and response to gender-based violence, and livelihoods support to refugees in Uganda as well as their Ugandan host communities.

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On October 17, 2018, the European Union approved to finance the project for the rehabilitation of the Tororo-Gulu railway. A grant of EUR 21.5 million will be disbursed from the European Development Fund (EDF) to rehabilitate this key transport infrastructure in Northern Uganda. The Government of Uganda will contribute with counterpart funding equivalent to EUR 13.1 million.

EU Head of Delegation to Uganda, H.E Ambassador Attilio Pacifici, together with the Minister of Finance Planning and Economic Development, Honorable Matia Kasaija put pen to paper on the financing agreement for the project.

The objective of the project is to reduce the transport costs within Northern Uganda and beyond, including South Sudan and Eastern Democratic Republic of Congo. Once rehabilitated the Tororo-Gulu railway will allow a significant part of cargo currently moving on wheels along the Northern Corridor to transfer to rail.

With this project the EU continues to support the transport sector in Uganda and the promotion of a multimodal transport plan focusing on the development of environmentally friendly transport modes such as railways and waterways. The project is also a mark of the EU’s commitment to continue supporting Northern Uganda.

Together with the Gulu Logistic Hub, also funded by the EU, the Tororo-Gulu railway rehabilitation project will crucially contribute to improve performance of Northern Uganda’s key value chains by facilitating cheaper import of export of products. It will contribute to achieve the overall objective of private sector development and job creation in Northern Uganda and to implement the Ugandan Green Growth strategy and Vision 2040.

“We are proud to support the Government of Uganda’s decision to revitalize this crucial economic link,” said Ambassador Pacifici. “This project is part of the many actions taken by the European Union to support Northern Uganda which include the recently launched EUR 150 million Development Initiative for Northern Uganda (DINU) as well as the provision of humanitarian assistance to refugees and support to the host communities.”

On behalf of the Government, Hon. Kasaija thanked the EU for supporting Uganda’s economic growth and development.

The Tororo-Gulu railway line used to be a pivotal economic artery along the East African Northern Corridor linking the port of Mombasa and Eastern Uganda to Northern Uganda, as well as to South Sudan and Democratic Republic of Congo. The line has been out of service since 1993 because of unrest in Northern Uganda and unfair competition of overloaded trucks.

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On September 25, 2018 a water, sanitation and hygiene (WASH) in schools programme – WASH in Schools – in Karamoja was launched at the Matany Primary School in Napak District. The programme, supported by the Korea International Cooperation Agency (KOICA) and UNICEF, aims to support districts in Karamoja deliver the national WASH in Schools standards in all schools across the region.

“Schools in Karamoja are seriously lacking in quality water, sanitation and hygiene services, which is greatly affecting the environment that our children are learning in,” said Hon. Moses Kizige, Minister of State for Karamoja Affairs. “This programme is therefore very timely in that it will help us get to a new level in delivering quality water, sanitation and hygiene services – and, as a result, learning – in our schools.”

The national WASH in Schools standards are a set of 24 standards updated by the Ministry of Education and Sports in 2017, including:

• 1.5 litres of safe drinking water provided every day to all learners and staff
• Separate latrines for all girls and boys, and children with disabilities
• 1 handwashing facility for every 40 learners, with water and soap in all school latrines
• Schools have annual budgets to operate and maintain all school WASH facilities
• Hygiene education manuals used to educate all pupils and students, including through school health clubs and school-based WASH activities
• Schools having a waste management system where solid waste is collected every day and disposed safely

As part of the launch, the leadership from all eight districts in Karamoja – Abim, Amudat, Kaabong, Kotido, Moroto, Napak, Nakapiripirit and Nabilatuk – as well as the leadership from the Ministries of Karamoja Affairs, Education and Sports and Water and Environment, committed to ensure that every school in Karamoja meets the national WASH in Schools standards by 2023.

“We are proud to partner with the Government of Uganda and UNICEF to contribute to national efforts that will support Ugandan children grow, learn and thrive,” said Ms. Jun Young Suk, KOICA Country Director. “We are especially pleased that this support could be catalytic in supporting districts mobilize their own resources to meet the national WASH in Schools standards in all schools across Karamoja – not just the schools directly benefitting from this support.”

The programme will directly benefit 56,000 children in 100 schools with a package of WASH interventions that will ensure all national WASH in Schools standards are met in those schools.

“Meeting the national WASH in Schools standards is critical to children staying in school, performing well in school and keeping healthy and well, among other benefits. As an example, the practice of handwashing with soap and clean water can reduce diarrhea by around 40 per cent among young children, something that is urgently required considering diarrhea is presently the third largest killer of young children in Uganda with around 30 children dying from it every day across the country.” said Dr. Doreen Mulenga, UNICEF’s Representative in Uganda.

“We are therefore extremely grateful for this support from the people of Korea and welcome the Government’s commitment to ensure that the national WASH in Schools standards are met in all schools across Karamoja.  We now hope that this commitment will be a precedent for all other Districts in Uganda to follow – to prioritize planning and budgeting the delivery of all interventions required to meet the national WASH in Schools standards.”

To learn more about Uganda’s national WASH in Schools standards, as well as the package of interventions required to meet them, see: https://www.unicef.org/uganda/resources_21907.html

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The African Development Bank has approved the East Africa Regional Integration Strategy Paper (RISP) laying out the roadmap for accelerating regional integration in the Region with regional infrastructure development among the main pillars of the plan. The Strategy will guide the Bank’s regional operations in 13 countries, namely Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania and Uganda.

The Regional Integration Strategy Paper 2018-2022 maps out the direction of the Bank’s regional integration work in Eastern Africa over the next five years. The key objectives are fast-tracking structural transformation, increasing trade and promoting financial sector integration and inclusion.

The strategy is focused on two mutually reinforcing pillars namely regional infrastructure development for competitiveness and transformation, and strengthening of policy and institutional frameworks for market integration, growing investments and value chains development.

Eastern Africa is the fastest growing region in Africa, with real gross domestic product (GDP) growth rate of 5.9% in 2017 compared to the continental average of 3.6%.

But countries in the region grapple with poor infrastructure including power shortages, low electricity connection rates and high cost of electricity for manufacturing enterprises – about four times higher than the global average. They are also characterized by low-level industrialization, with manufacturing added value below 15% in all the region’s member countries.

“Most Eastern African countries depend on agricultural and mineral products for their exports,” said Nnenna Nwabufo, Deputy Director General, East Africa during her presentation to the Board. “But most of these products are of low-level sophistication and low value added. This is why this Strategy Paper is key to boosting industrialization and intra-regional trade.”

Nwabufo added that approval of the Strategy Paper sets the framework for the Bank to support key economic sectors like regional energy and transport, which will underpin Eastern Africa’s transformation.

The Strategy Paper was developed in consultation with Regional Economic Communities (RECs) in Eastern Africa and is aligned with key REC strategies for the East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA) and Intergovernmental Agenda on Development (IGAD). The strategy also responds to priorities in the United Nations Sustainable Development Goals, the African Union Agenda 2063, the Tripartite Free Trade Area, and the Continental Free Trade Area, launched this year to consolidate Africa’s market regimes.

The Strategy Paper also dovetails into the Bank’s Ten Year Strategy (2013-2022) and the High-5s operational priorities — Light Up and Power Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the Quality of Life for the People of Africa.

In this regard, Moono Mupotola, Director for Regional Integration and Coordination at the Bank’s HQ, welcomed the approval of the Strategy Paper, which sets out a clear roadmap for the delivery of Bank’s Integrate Africa High-5 in Eastern Africa.

The Bank’s indicative operational program to roll out the Strategy is estimated at US$3.3 billion and is subject to review at the mid-term. The Bank will work closely with regional member countries and RECs in the region in following up on implementation progress including convening member states to ensure accelerated delivery.

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On October 5, 2018, the UK Minister for Africa, Harriett Baldwin, visited the Medical Research Council/Uganda Virus Research Institute (URVI) and the London School of Hygiene and Tropical Medicine Research Unit in Entebbe, hailing the historical and strong collaboration between the UK and Ugandan governments. Established under an agreement between the Ugandan and the British Governments in 1988, it is currently at the forefront of cutting edge research on HIV/AIDS and other infectious diseases including Viral Haemorrhagic Fevers such as the Ebola virus. Minister for Africa Harriett Baldwin said:

“I am delighted to visit the URVI and see the successes of a 30 year partnership between the UK and Uganda on research into HIV and related diseases. The new partnership between the London School of Hygiene and Tropical Medicine and the Institute shows the very best of UK expertise helping to prevent deadly diseases in both the world’s poorest regions and at home.”

While visiting the Institute the Minister announced, in collaboration with Uganda’s Ministry of Health and channeled through four UN agencies, that the UK will support Uganda’s National Task Force with up to £5.1 million to support Ebola preparedness and prevention efforts in Uganda. This funding will support surveillance in high-risk districts at the border with the Democratic Republic of Congo (DRC); risk reduction communication amongst communities; infection prevention and control measures as well as provide for improved case management. A significant proportion of the funding will also provide core relief items (basic household necessities) to allow newly arrived refugees to leave overcrowded and high-risk transit and reception centres, therefore reducing further the risk of spread of Ebola.

The UK government and World Health Organisation (WHO) judge Uganda’s current preparedness efforts to be strong. However, the risk of the disease spreading beyond the border from DRC is high and the funding will support timely interventions to strengthen screening at points of entry including the Entebbe international airport.

Notes to Editors

• Following the signing of strategic transfer agreements between the London School of Hygiene & Tropical Medicine (LSHTM) and the Medical Research Council UK (MRC UK), the MRC/UVRI formerly joined LSHTM on 1 February 2018. The exciting new partnership will boost research capacity into current and emerging health issues in Africa and throughout the world.
• The Government of the Uganda supported by the World Health Organisation (WHO) are leading implementation of Uganda’s National Preparedness and Initial Response plan. There have been five outbreaks of Ebola in Uganda since 2000 and the country is familiar with managing outbreaks of the disease
• On the 1 August 2018, the Ministry of Health in the DRC declared an outbreak of Ebola in Eastern DRC. As of 1 October, the total number of confirmed and probable cases was 159, with 101 deaths. There are high population movements between the DRC and Uganda that mean the risk of transmission to Uganda is high. This includes normal trade plus an influx of refugees fleeing conflict in the DRC. Since January 2018, close to 100,000 refugees (98,103) have arrived in Uganda from the DRC. Insecurity in Eastern DRC continues to hamper the response to the outbreak as access is severely restricted in conflict-affected areas.
• The Government of the Uganda supported by the World Health Organisation (WHO) are leading implementation of Uganda’s National Preparedness and Initial Response plan. There have been five outbreaks of Ebola in Uganda since 2000 and the country is familiar with managing outbreaks of the disease.
• Recently, security incidents around the city of Beni have led to certain elements of the Ebola response being temporarily suspended. While Ebola treatment centres have remained open, vaccination, contact tracing, and community engagement activities had to be ceased temporarily from 23 to 25 September.
• We expect that this temporary suspension in contact tracing and community engagement may lead to an increase in case numbers in the coming days. However, now that the response is fully operational once again, we expect WHO, the DRC Government, and their implementing partners to be able to manage a potential increase in the caseload.
• In response to the increase in cases, the emergence of cases in new health zones, and the challenges faced in delivering the response, the WHO and the DRC Government are releasing a renewed response plan, which will extend the response by three months and request additional funds.
• The UK will provide further funding through WHO, which will enable: surveillance, vaccination of at-risk groups; establishing sanitary control points; community engagement; communications and awareness-raising; and coordination. We are also funding critical surge roles to UN agencies in the DRC and neighbouring countries.

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