Unpacking Uganda's 3rd National Development Plan

In Uganda, the third national development plan was tabled before the parliament in January 2020 by the Minister of State for Planning. This plan was intended to guide the processing and approval of budgets for the next five years, starting with the 2020-2021 financial year. Analyst Charles Bogey-Jenda joined CNBC Africa to provide insight and analysis on the five-year plan and its implications. The national development plan is a crucial component of Uganda's journey towards Vision 2040, aiming to elevate the country to upper-middle-income status. The plan is centered on increasing household incomes and improving livelihoods across Uganda. Priority sectors include oil and gas, industrialization, import substitution, exports, and local content development. The government's objective is to enhance economic participation among Ugandans in key sectors such as oil and gas and tourism. While the current national development plan, which is set to conclude in June, had some successes in infrastructure and energy development, it fell short of elevating the population to lower-middle-income status by 2020. Out of the 42 projects outlined in the plan, only 22 were effectively implemented. Several challenges hindered the government's ability to achieve its targets, including issues with fund absorption, bureaucratic delays, and resource availability. Finance plays a critical role in the execution of development plans, and Uganda faced challenges in mobilizing both domestic and external resources to fund ambitious projects. The COVID-19 pandemic further complicated matters, prompting the need for budgetary adjustments to align with the new economic realities. The upcoming financial budget is likely to undergo revisions to address the evolving landscape shaped by the pandemic. Reflecting on the lessons learned from past development plans, there is a growing emphasis on improving fund absorption efficiency, deepening domestic resource mobilization, and adapting to the 'new normal' brought about by COVID-19. President Museveni highlighted the need to increase the country's tax-to-GDP ratio, signaling a push for greater domestic revenue collection. Despite the potential for enhanced resource mobilization, the challenges posed by the pandemic raise concerns about achieving the targets set in the national development plan. As Uganda navigates the complexities of implementing the third national development plan amidst changing global circumstances, strategic approaches focusing on efficient fund utilization, resource mobilization, and adaptation to the new economic realities will be pivotal in driving sustainable growth and development. The forthcoming period will require a concerted effort from government stakeholders, private sector players, and the Ugandan population to help steer the country towards its Vision 2040 goals.