World Bank Pledges $3.8B for Uganda's Decade-Long Growth Plan

Uganda is set to receive a significant financial boost from the World Bank, with a new 10-year partnership valued at $3.8 billion (approximately Shs14 trillion).

This substantial funding is earmarked to fuel Uganda’s ambitious 10-year growth strategy, aiming to attract private investment, generate employment opportunities, and ensure economic stability, particularly as the nation prepares for its oil revenue era.

During the launch of the Uganda Country Partnership Framework (CPF) and the Public Finance Review, Finance Minister Henry Musasizi underscored that the impact of this funding hinges on the government’s ability to curb wasteful spending and prioritize outcomes that demonstrably improve citizens’ lives, rather than merely counting approved projects.

The CPF outlines the World Bank Group’s operational strategy to support Uganda’s vision of becoming a modern, competitive upper-middle-income country by 2040. This framework aligns with the national “tenfold growth strategy” and the National Development Plan IV (NDP IV) priorities, with a key objective of mobilizing at least $3.8 billion in private capital.

Specific areas of focus for the CPF include fostering wealth creation, enhancing job quality, strengthening economic governance, improving public health and education, and developing robust infrastructure to support a more productive and inclusive private sector.

Concurrent with the CPF, the Public Finance Review issued a cautionary note, highlighting that sustainable economic prosperity cannot rely solely on oil revenues. It advocates for strengthened institutions, efficient public spending, improved domestic revenue collection, and continued investment in human capital.

Minister Musasizi reaffirmed the government’s commitment to prudent execution of the growth strategy, aiming for a $500 billion economy through disciplined financial management, enhanced revenue mobilization, wealth creation initiatives, and effective oil revenue oversight.

He acknowledged Uganda’s resilience in maintaining macroeconomic stability amidst global challenges, citing improvements in public financial management, fiscal transparency, debt management, and public investment systems.

“As we scale up public investment, let us remember that development is not measured by the size of our budgets, the number of projects approved or policies adopted, but by the lives transformed, opportunities created and lasting impact on citizens,” Musasizi stated.

Qimiao Fan, World Bank Division Director for Kenya, Rwanda, Somalia, and Uganda, confirmed the Bank’s strategic shift towards comprehensive sector-wide interventions and reiterated its unwavering support for Uganda’s development agenda.

Source: Daily Monitor (Uganda)