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EU Signs UGX285bn Sector Reform and Performance Contract with Uganda

On December 1, 2017, the Head of the European Union Delegation to Uganda, H.E. Ambassador Attilio Pacifici, and Hon. ‎Matia Kasaija, Minister for Finance, Planning and Economic Development, signed the Financing Agreement for a Sector Reform and Performance Contract (SRPC). The Agreement draws EUR 66 million in grant from the 11th European Development Fund, in favour of Justice and Accountability Reform (JAR) in Uganda.

The specific objective of the Action is to improve the governance of public funds, including the mobilisation, strategic allocation and efficient use of public resources, for improved service delivery. It will be implemented through the Justice, Law and Order (JLOS) and Accountability sectors and is expected to enhance their synergies.

The EU continues to work with the Government of Uganda to support progress towards the objectives of the National Development Programme II (NDP II). JAR is aligned in particular with Objective N°4 of the NDP II which pursues to strengthen mechanisms for quality, effective and efficient service delivery.

JAR is composed of sector budget support of EUR 60 million and complementary measures of EUR 6 million. Its five result areas are domestic revenue mobilisation and management for sustainable development, strategic planning and budgeting for enhanced service delivery, public investment management, service delivery in the JLOS sector and institutional capacity to reduce public sector corruption.

JAR pursues a strengthened collaboration between the Accountability and JLOS sectors for leveraging the outcomes of anti-corruption measures. It will link the different parts of the accountability chain, such as transparency, audit, investigations, sanctions, prosecution.

Other expected key outcomes are a reduction in case backlog and an increased automation of courts in the judiciary, Uganda’s preparedness for membership in the Extractive Industries Transparency Initiative, increased competition in public procurement, enhanced quality of public investment projects, and an increased accessibility of legal services.

The agreed targets and disbursement conditions of JAR also emphasise human rights compliance in the JLOS Sector. This will be measured through the reduction of the number of un-sentenced detainees, and a reduced backlog in the reporting in respect of international human rights treaties Uganda has signed up to.

Among 20 institutions in the Accountability Sector and 17 in JLOS, the following will play a central role in achieving the JAR specific conditions and performance indicator: MoFPED, Uganda Bureau of Statistics (UBOS), Office of the Auditor General (OAG), the Courts of Judicature, the Prison Service, the Directorate of Public Prosecution (DPP), the Criminal Investigations Directorate (CIID), Department of Ethics and Intergrity (DEI), the Inspectorate of Government (IGG) the Public Procurement and Disposal of Public Assets Authority (PPDA) and the Ministry of Local Government.

A key element for the success of the Action will be effective policy dialogue between the concerned Ministries, Departments and agencies of the Government of Uganda, the EU Delegation, other EU Member States, Development Partners and Civil Society.

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UNDP Launch Project to Restore Wetlands and Build Resilience

The Government of Uganda and United Nations Development Programme (UNDP) have kick-started the new project on ‘building community resilience, wetlands ecosystems and associated catchments in Uganda.’

The new project which is Uganda’s first Green Climate Fund financed initiative is a response to the Presidential Initiative on Wetlands

The project inception meeting held on today – Wednesday, 29th November 2017 – marks start of project implementation and comes after both entities signed a financing agreement in August 2017 for the project which is intended to restore degraded wetlands, improve ecosystems, and strengthen climate information and early warning systems.

The grant based project will target an estimated 4million people who live in and around Uganda’s wetlands and rely on them for food security. It is part of both the Government and the United Nations efforts to promote Sustainable Development Goal 13 on climate action as well as fulfil its obligations to the Paris Agreement on Climate Change which it ratified last year.

“Fighting climate change and its effects is now a key goal for the Government of Uganda. We are delighted that this project is going to enable us respond to the President’s call to protect wetlands and boost our ongoing efforts in climate change mitigation and adaptation,” Hon. Mary Goretti Kitutu, the State Minister Environment said at the inception workshop for the project.

The eight-year project is supported with a US$24.14 million grant from the Green Climate Fund, US$2 million from UNDP and US$18.12 million in co-financing from the Government of Uganda.

“UNDP’s goal is to support the Government of Uganda and its people in their fight against the effects of climate change which we are already witnessing with the long dry seasons, heavy rainfall leading to floods and landslides among others,” Ms. Almaz Gebru, the UNDP Uganda Country Director said.

She added the project will initially work towards restoration of Uganda’s degraded wetlands, improve people’s livelihoods and increase resilience of wetland dependent communities. Later on, it will extend to other facets of the environment such as forests and wildlife holding areas.

This project builds on UNDP’s other efforts in building resilience to climate change, including the National Wetlands Atlas developed by UNDP, UN Environment and the Government of Uganda, which was  launched in February 2017 during the World Wetlands Day celebrations.

About the project

The Green Climate Fund-financed project will restore an estimated area of at least 760 square kilometres of degraded wetlands and associated catchments while improving the lives of at least 500,000 people living in 20 districts in Eastern and South Western regions of Uganda which have experienced the highest levels of wetland degradation and climate change impacts.

To achieve this, the project will employ a three-pronged approach including; restoration of wetlands and associated forests, improved agricultural practices and alternative livelihood options in the wetland catchment areas, and strengthening access to climate and early warning information to farmers.

It is anticipated that the restored wetlands will also enhance communities’ climate change adaptation and resilience, by reducing risk to flooding and drought associated with changing climatic conditions. About 4 million people are estimated to be living adjacent to wetland areas in Uganda and rely on these areas to feed their families and make a living. Wetlands are also an important ecosystem that captures carbon and their conservation will contribute to lowered greenhouse gas emissions.

The project will also diversify economic activities for the vulnerable communities living in the Southwestern and Eastern regions of Uganda through the introduction of improved fishing and agricultural practices among other activities.

These efforts will be key for achieving the Sustainable Development Goals particularly  Goal 13 on Climate Action and contribute to Goal 2 on no hunger, Goal 6 on Clean Water and Sanitation, Goal 11 on Sustainable Cities and Communities, Goal 14 on Life below water as well as Goal 15 – life on land.

The project will be implemented by the Ministries of Water and Environment in collaboration with the Ministry of, Agriculture, Animal Industry and Fisheries, Uganda National Meteorological Authority. It will also engage various civil society and the private sector groups.

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EU and UNDP Supports Green Growth Development Strategy

The Government of Uganda has launched a new Green Growth Development Strategy to guide its development. The strategy serves as the blue print towards a socially and economically inclusive development pathway for Uganda as it endeavors to reach middle income status.

“This Green Growth Development strategy will be very instrumental in directing Uganda to achieve the Sustainable Development Goals and national goals at large while building Prosperity for All as has been reiterated by His Excellency the President,” Hon. Moses Ali, the first deputy Prime Minister said during the launch ceremony.

He said that the Strategy provides a ray of hope for addressing these challenges, adding that; “it presents an opportunity to renew our political commitment to the principles of sustainable development which are already enshrined in our constitution, the NRM Manifesto, Uganda Vision 2040 and the second National Development Plan (NDP II).”

Green growth is described as an inclusive, low emissions economic growth process that emphasizes effective and efficient use of the country’s natural, human, and physical capital while ensuring that natural assets continue to provide for present and future generations.

The Strategy unpacks the key green growth issues contained in NDP II and Vision 2040 and provides the blue print for Uganda’s transition into a green economy. It highlights areas with the highest potential for green growth’s contribution to Gross Domestic Product (GDP), employment, resource use efficiency, social inclusiveness and equity, as well as environmental sustainability. It focuses on five priority areas to promote green grown, including;

  • Sustainable transport that promotes mass transport systems for urban areas among other things.
  • Planned urbanization/green cities providing linkage between industrial production in cities to the raw material production in rural areas.
  • Sustainable energy with emphasis on greening the energy mix to include solar and wind, efficiency in use and ensuring equity in access to energy.
  • Natural resource management with focus on green tourism, water resources management and sustainable use of forests and wetlands, and lastly;
  • Sustainable agriculture with concentration on solar powered irrigation, integrated soil fertility management and upgrade of value chains.

“While the strategy is an implementation tool for ensuring that both NDP II and Vision 2040 are achieved in the most sustainable manner, it does not replace them. It actually accelerates their implementation along a sustainable development pathway,” Dr. Kisamba Mugerwa, the Chairperson, National Planning Authority said in a speech read for him by Dr. Godfrey Okot, a member of the NPA executive board.

Dr. Mugerwa further said that once implemented, the Green Growth Development Strategy would boost GDP by 10 percent beyond current projections and create additional four million green jobs by 2040 while reducing greenhouse emissions by 28 percent over the same period.

Dr. Joseph Muvawala, the Executive Director speaking after him added that; “It’s important for us to start thinking about development in terms of protecting Mother Nature. We must protect society, our environmental assets and ensure that we have in place growth and development models that are sustainable.”

Ambassador Attilio Pacifici, the European Union Ambassador to Uganda who was present at the launch stressed the EU’s commitment to supporting Uganda in achieving green growth while a panel of economists, environmentalists and policy makers all agreed that in choosing to go green, Uganda was on the right path to inclusive development.

They called on government to emulate the examples of Ethiopia in Africa and Cambodia in Asia in ensuring that the green growth strategy that has been developed is well implemented.

The strategy was developed by the National Planning Authority in partnership with the Ministry of Water and Environment and the Global Green Growth Institute. UNDP provided technical assistance for the development of the strategy with financial support from the European Union.

“UNDP has been working closely with the government, not only to develop this strategy but also to ensure that green growth concepts are incorporated into all its work,” Ms. Rosa Malango, UNDP’s Resident Representative and UN’s Resident Coordinator said in a speech read for her by Ms. Almaz Gebru, the UNDP Country Director during the launch of the strategy.

Ms. Gebru further said that UNDP together with the government have mobilized US$ 24.1 million from the Green Climate Fund to implement the Presidential Initiative to restore wetlands – a green growth initiative that will promote community resilience through providing alternative livelihoods for those living close to wetlands. The initiative will be launched at the end of this month.

The Green Growth Development Strategy will be implemented over the next 14 years and is estimated to cost USD 11 billion.

Ms. Gebru further said that UNDP together with the government have mobilized US$ 24.1 million from the Green Climate Fund to implement the Presidential Initiative to restore wetlands – a green growth initiative that will promote community resilience through providing alternative livelihoods for those living close to wetlands. The initiative will be launched at the end of this month.

The Green Growth Development Strategy will be implemented over the next 14 years and is estimated to cost USD 11 billion.

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US Launches Report to the Ugandan People

The U.S. Mission to Uganda is pleased to present the first-ever Report to the Ugandan People, a summary of some of the most important U.S. assistance programs in Uganda during the last year. The stories contained in this Report highlight the many successes of Ugandans across the country and demonstrate the strength and value of the relationship between the United States and Uganda.

The U.S. government remains committed to helping all Ugandans build the kind of country they want and deserve. The programs and activities we support to help achieve that goal aim to create a healthy, prosperous, and stable country with just and democratic governance, which will in turn produce an inclusive, educated, and empowered society. This is why the United States invests in Uganda: to see its people live up to their full potential.

In Fiscal Year 2016, U.S. government assistance to Uganda totaled more than $840 million, supporting programs in health, economic development, security, education, and several other areas in every corner of the country. More than half of that assistance, some $488 million, was dedicated to programs in the health sector, including efforts to control the spread of HIV, combat infectious diseases, and build stronger and more effective health systems. The work of the U.S. Mission in Uganda is carried out by several U.S. government agencies and programs, including the Departments of State and Defense, the U.S. Agency for International Development, the Centers for Disease Control and Prevention, the U.S. President’s Emergency Plan for AIDS Relief, the Peace Corps, and the National Institutes of Health.

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#Blog4Dev and Essay Competition: What will it take to end Gender Based Violence in Uganda?

The World Bank invites young Ugandans to share thoughts on what it will take to end Gender Based Violence (GBV) in Uganda. First price is a trip to Washington, D.C. in April 2018.

According to the World Health Organization, GBV is a global epidemic affecting more than one in three women worldwide – at a huge cost to individuals, families, and economies that spans generations. In Uganda, slightly more than half of women aged 15 to 29 have experienced physical violence since the age of 15, and 28 percent of women overall have experienced sexual violence in their lifetime.

GBV is a human rights violation perpetrated against a woman or girl, man or boy and has a negative impact on their well-being. It comes in many forms, including physical violence, rape and sexual assault, child and forced marriages, female genital mutilation, human trafficking, and the denial of resources and services. It is undeniable that GBV has a significant negative impact on socio-economic well-being. It is therefore imperative to seek ways to prevent and end gender-based violence to help build a better and more inclusive future for Uganda.

Now in its fourth year, the #Blog4Dev series is a writing competition in which youth compete to submit solutions to a topical development challenge. It tests for creativity, innovation and potential to scale up; while also engaging youth to be an integral part of the development process in their countries. To enter the competition, you must (i) be a Ugandan citizen, (ii)  be between the ages of 18 and 28 years, (iii) currently reside in Uganda, (iv) be able to hold a conversation in English, and (v) write a 500-word original blog/essay in English and send to the World Bank. Please visit the World Bank website for more information.

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WHO Support to Marburg Response in Eastern Uganda

The World Health Organization (WHO) has donated 10 motorcycles to Uganda’s Ministry of Health to enhance Marburg Virus Disease (MVD) contact tracing, active case search as well as disease and death surveillance in Kween and Kapchorwa districts. The motorcycles worth USD 32,000 will eventually be used to strengthen the community disease surveillance system in the two districts when the current outbreak response activities come to an end.

The terrain and road network in Kapchorwa and Kween have challenged responders to quickly reach MVD affected communities with vehicles which have made the preferred and convenient mode of travel.

“Logistical equipment such as motorcycles are very crucial during any disease outbreak,” said Hon. Dr Jane Ruth Aceng, Minister of Health while receiving the motorcycles at the Ministry. “The motorcycles come at a crucial time when we are strengthening our disease surveillance system in order to tackle Marburg Virus Disease outbreak and other diseases of outbreak potential”, she added. She, therefore, appreciated the financial and technical support from WHO especially during the current outbreak.

The Acting WHO Representative in Uganda, Dr Jack Abdoulie commended the Ministry of Health for mounting an effective outbreak response against the deadly MVD which has so far been confined to Kapchorwa and Kween districts and in only one community. “Uganda has played a significant role in the control of disease outbreaks not only in the country but also in supporting other countries in the region”, he said. Dr Jack commended the work done by the mobile disease surveillance team noting that “It is crucial for detection and communication with the health workers not only in the affected districts but also all health facilities throughout the country.”  He hoped that the motorcycles will further strengthen their activities and reaffirmed WHO’s commitment to support to the government to improve the lives of the people.

As of today, there is one probable and two confirmed cases of MVD in Uganda. A total of 230 contacts were listed and have been followed up daily to see if any of them develops signs and symptoms of Marburg for quick treatment and containment. Luckily all the contacts have finished the mandatory 21 days without any problem bringing the possibility of quick containment even nearer.

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UNCDF Pilots Digital School Fee Payments

UNCDF is working with PEAS schools to explore ways on how digital financial services can make it easier to pay school fees and increase school attendance.

Godson Kayiza, a farmer in Kira, Uganda has four school-going children, two of whom are in secondary school. One of these, his daughter, goes to the Kira View secondary school, which is run by PEAS (Promoting Equality in African Schools), an NGO that runs 28 secondary schools in Uganda. Kira View secondary school is about one kilometer from their home. The other child studies in Entebbe, which is about a four-hour drive from home.

Godson explains that he chose a PEAS school, because it provides quality education at an affordable cost and most of all is very flexible on fee payments. As we chat, Godson clarifies that the education of his children is a priority on his expenditure list. Nevertheless, he also mentions that the beginning of the school year is financially strenuous, as it does not coincide with the harvest period when he has enough money to pay for the fees. What is more, his financial planning is often distorted by illness in the family, creating additional financial strains.

Paying School fees

For his daughter at the PEAS school, Godson pays the fees in cash. For his other child, enrolled in Entebbe, he mainly uses mobile money to pay for fees, as it is cheaper than travelling there to pay with cash in person. For both kids, he pays in three to four installments in the school term (quarter).

Before the children have their exams, he must clear all fees so that his children are allowed to take their exams. “When I’m short on cash, I am able to negotiate with the school director at PEAS for patience. They will ask me to pay even as little as UGX 5,000 (USD 1.37). In this case they give my child an admission card that allows her to attend school until the date specified on the card. Beyond this date, I need to pay again. Otherwise my child will not be allowed back in to school.”

Collecting School fees

“We receive our school fees mostly in cash from the parents or the students themselves. Some parents, mainly those who live far from the school send it via mobile money to my personal phone or that of the bursar. Sometimes we also accept a part of the payments in kind, like food items”, Richard Ayaga, School Director, PEAS Kira View. “Paying and collecting fees is a major pain-point for both parents and the school respectively. We have to be firm in gathering fees, while being very considerate towards the parents’ financial capacity.”

Even though most parents pay the fees in cash, handling this cash has its challenges. The bursar receives cash in the school office and must in turn bank this money. Handling all this cash comes with significant risks, such as:

  •  Human mistakes made when counting the money
  •  Receiving counterfeit notes
  •  Keeping large sums of cash in the school’s office
  •  Staff safety when travelling to bank with cash

Mobile money payments are convenient for some parents, but it too has risks. When the director or bursar receives money on their phone, they call that number to confirm who has made the payment and for which student. Most senders do not add the withdrawal fee, so the school has to pay for these withdrawal fees, making a loss. Payments to personal numbers also put the director or bursar into temptation to use the money for personal needs.

Payment behavior for Education

Valuable insights can be drawn from mapping the parent’s payment behaviour of concerning school fees as well as the way schools process these payments. Insight that helps understand how digital finance can solve some of the major pain points around payments in the education sector.

This baseline study is part of a partnership between UNCDF and PEAS, which seeks to provide answers to some pertinent questions: What are the advantages of moving from cash to digital payments for different stakeholders? How does that impact access, affordability, quality and sustainability of secondary education? One of the potential solutions could be a system where parents can pay school fees based on their cash flow linked to the seasonality of the different crops they grow.

All of this is set against the background that in Sub-Saharan Africa, only one in four children are able to continue their education beyond primary school, as secondary education is still largely underfunded and under-provisioned (PEAS, 2015). In Uganda, the Africa – America Institute reports that in 20151, 72 percent of secondary school-aged children were still not in school.

In the months to come UNCDF together with PEAS will prototype and pilot some of the potential digital finance solutions aimed to increase the attendance rates. Which in turn, would allow more and more children in Uganda to finish secondary school.

1 State of education in Africa report 2015, The Africa America Institute

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Innovation is Changing Maternal and Adolescent Health Dynamics in Rural Uganda

GetIN, an online platform for health care providers to strengthen the linkage between health care providers and young pregnant women to provide timely and quality maternal health care, was launched in Kanungu district, Western Uganda on 1st November, 2017.

The rollout of GetIN mobile application is a part of UNFPA’s 15 years of continuous efforts to improve youth-friendly and maternal health service delivery to the district.

Despite its strong leadership in sexual and reproductive health, Kanungu still retains a high teenage pregnancy rate. According to Kanungu District Local Government Statistical Abstract 2014, 57 percent of the district population is below 24 years, and the teenage pregnancy rate is very high at 50 percent, doubling the national average of 25 percent.

In his remark, Mr. Byomuhangi Gad, the Vice Chairperson of Kanungu District, highlighted issues of teenage pregnancy: “Many young pregnant mothers cannot easily access health services.”

In many villages, it is challenging for young pregnant women to access health facilities due to geographical distance and cultural challenges, including stigmatization of pregnant girls. Deep cultural belief still remains in many rural communities, and villagers believe that it is a shame for a family to have a young pregnant daughter. As a result, young pregnant women are often hidden and neglected by their communities. With no support from families, living in a geographically isolated area, and a weak follow-up system by the health care providers, it is often challenging for the young pregnant women to seek adequate maternal health care.

GetIN mobile application enables health care providers to reach out to the “hard-to-reach” young pregnant women, map their physical location, and send key maternal health messages up until the three-month post pregnancy period, thereby improving their knowledge on how to ensure safe motherhood and post-partum family planning.

GetIN also collects accurate information of the young pregnant women (below 25 years old) and reports the data to a central dashboard, which is monitored by District Health Officer and District Bio-statistician. The dashboard provides information of the work done by the health care providers and creates an opportunity for the district health team to respond to any noted challenges in real time.“GetIN will enhance the communication between health care providers and young pregnant women,” said Heph Kwesiga Muteesa a midwife at Kanungu District Hospital 4.

Donald Waruhanga, Technical Developer of GetIn, also enthusiastically explained benefits of GetIN offers, saying:  “by utilizing this application, young pregnant women in rural communities will be able to access more health information and services. In a long run, our hope is to reduce maternal morbidity and mortality among young women.”

During the GetIN launch ceremony at the Kanungu Council Hall, UNFPA distributed 60 smartphones to the district. Sixty (60) Community Health Extension Workers (CHEWS) and 18 midwives were trained by young developers of GetINon how to use the new mobile application. At the end of the training, two CHEWS from Kanungu Town Council undertook a mapping of the first three pregnant girls as a way of signifying the rollout of the application.

At the same event, UNFPA also introduced two innovation products: SafePal (a mobile application that young people can use to confidentially report cases of sexual and gender based violence and get linked to nearby health, legal and social services) and The ZONE (a free online portal for young people, provides age appropriate information on sexuality, body changes, relationship, and financing).

UNFPA believes that through innovative solutions, Uganda will register great improvements in sexual and reproductive health indicators for women and girls.

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Men in Karamoja Promote Gender Equality and Healthy Choices with UNFPA

Fifty male action groups (MAGs) consisting of young men and boys from Moroto, Napak, Nakapiripirit, Kaabong, Amudat, Kotido, Abim, Gulu, Kitgum and Lamwo have been formed to raise awareness on positive fatherhood and educating community members and groups about healthier and more equitable behaviours for men and women.  The MAGs consisting of executive committees of at least 9 committed members each, with over 30 other members also raise awareness on how to support individuals to take actions that promote health and safety.

Each member has pledged to sensitize 10 fellow men on prevention of gender based violence, good health seeking bahaviours, HIV testing and supporting their partners to access Antenatal Care (ANC) and SRH/Family Planning services. A total of 15,000 men and boys have been reached.

“Alcohol and drug substance use in Karamoja is seen as the leading cause of domestic violence, HIV/STIs infection, early marriages and teenage pregnancies,” said Mr. Andrew Napaja the LCV Chairman, Moroto District.  Alcoholism has led to poor health, poverty and crime rate among men and women in the community, he said during a dialogue with male champions.

With support from United Nations Population Fund (UNFPA), AIDS Information Centre-Uganda (AIC) mobilizes male peer educators and male champions of change to prevent alcohol and drug abuse, as well as domestic violence. The ‘Ideal Man and One Man Can’ Campaign, project that started in September 2016 addresses low health seeking behaviour and unsafe sex practices among the communities.

The groups have realized the need to hold each other accountable with women and men working together for greater gender equality. During one of the community dialogues, one of the champions revealed how cultural norms, myths and misconceptions discourage SRH/HIV service uptake like condom use to prevent STI’s/HIV infection. According to the members, this campaign has empowered champions by equipping them with information. They in turn sensitize communities about SRH issues like the benefits and how to use condoms for dual protection.

“We now understand why in every community it is important for all pregnant mothers go together with their husbands to attend Antenatal Care,” one member said.

“The health education done at the Health facility is beneficial that it makes men to understand their roles as partners especially when the woman is pregnant. And now with this additional knowledge as a champion, I will be a role model in my community. It is my responsibility to support my woman with chores at home,” he added.

To date, at least 50 families have been reached out for counseling on HIV and Gender Based Violence. In Moroto male champions have discussions with fathers to avoid domestic conflicts by being responsible and providing for their families.

Due to this sensitization, 30 GBV cases have been identified and referred to health facilities. According to the members, where cases cannot be managed, they have been referred to LC 1 and police for further investigation and conclusion. Group members registered the sensitization of 500 people on HIV and GBV on ART Clinic Days at TASO Moroto.

Since the project started, fifty monthly steering committee meetings have been held to guide MAG members on how to implement their activities. MAGs are also now being consulted for advice and guidance on GBV prevention. The group champions have pledged and are encouraging other community members to form a saving and loan groups with 30 members each.

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IMF Staff Concludes Visit to Uganda

An IMF team led by Axel Schimmelpfennig visited Uganda from October 23 to November 3, 2017, to initiate discussions for a macroeconomic program under the Policy Coordination Instrument (PCI).

At the end of the visit, Mr. Schimmelpfennig issued the following statement:

“The team had productive discussions and progress was made on developing the pillars of a three-year economic program. The team will continue the dialogue in the coming months to define targets for the next fiscal year and identify specific measures to achieve them.

“Growth is projected to reach 5 percent in 2017/18 from 4 percent in 2016/17, supported by better weather conditions, while private sector credit remains muted. Inflation was 4.8 percent year-on-year in October. Bank of Uganda has appropriately continued its easing cycle in October, with core inflation projected to remain in line with the 5 percent target. The team notes with concern the increase in the poverty headcount ratio to 27 percent of the population in the 2016/17 UBOS Household Survey.

“Implementation of the FY17/18 budget is challenging. Parliament did not approve some of the government’s revenue enhancing measures, while additional expenditure pressures have given rise to a supplementary budget. This widens the overall fiscal deficit and increases the government’s financing needs. The team advised the authorities to explore alternative revenue measures and contain expenditure pressures, while protecting social spending.

“In establishing the FY18/19 fiscal targets, the team encouraged the authorities to continue the strategy of increasing revenue collection by at least 0.5% percent of GDP per year. The team also underlined the importance of targeting a deficit that maintains debt sustainability and is consistent with available domestic financing. The team welcomed the authorities’ ongoing work to identify policy implications from the Household Survey and the stock-taking exercise of the infrastructure investment pipeline which will lead to better prioritized development spending.

“The IMF team met with Minister Kasaija, Governor Tumusiime-Mutebile, State Minister of Finance for Planning Bahati, State Minister of Finance General Duties Ajedra, Permanent Secretary and Secretary of the Treasury Muhakanizi, Deputy Governor Kasekende, Commissioner General Akol, and other senior government officials, representatives of civil society, the private sector, and development partners.

“The team thanks the authorities for the open and constructive dialogue.”

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