Uganda) Vision 2040

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UGANDA VISION 2040 |I

NATIONAL ANTHEM
Oh Uganda! may God uphold thee,

We lay our future in thy hand.
United, free,
For liberty
Together we'll always stand.
Oh Uganda! the land of freedom.

Our love and labour we give,
And with neighbours all
At our country's call
In peace and friendship we'll live.
Oh Uganda! the land that feeds us

By sun and fertile soil grown.
For our own dear land,
We'll always stand:
The Pearl of Africa's Crown.
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II | UGANDA VISION 2040
FOREWORD
Over the last 50 years, Uganda has Development Plans (LGDPs), Annual
made significant development progress. work plans and Budgets. Consequently,
Since the mid 1980’s, the economy has Cabinet approved the National Vision
moved from recovery to growth. A num- Statement, “A Transformed Ugandan
ber of economic policies and programs Society from a Peasant to a Modern
such as the Structural Adjustment Pro- and Prosperous Country within 30
grams (SAPs), Economic Recovery Pro- years”. The National Planning Authority
gram (ERP), Poverty Eradication Action in consultation with other government
Plan (PEAP) have been successfully institutions and other stakeholders has
implemented leading to a boost in eco- thus developed a Uganda Vision 2040
nomic growth. Since 2002, the econo- to operationalise this Vision statement.
my grew consistently at an average of
6.4 percent and has since built sufficient Uganda Vision 2040 builds on the prog-
momentum for takeoff. ress that has been made in addressing
the strategic bottlenecks that have con-
In order to consolidate and acceler- strained Uganda’s socio-economic de-
ate this growth process, Government velopment since her independence, in-
in 2007 approved the Comprehensive cluding; ideological disorientation, weak
National Development Planning Frame- private sector, underdeveloped human
work policy (CNDPF) which provides resources, inadequate infrastructure,
for the development of a 30 year Vi- small market, lack of industrialization,
sion to be implemented through: three underdeveloped services sector, under-
10-year plans; six 5-year National De- development of agriculture, and poor
velopment Plans (NDPs); Sector Invest- democracy, among others.
ment Plans (SIPs); Local Government
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UGANDA VISION 2040 | III
It is therefore, with great pleasure that I The implementation of Vision 2040 will
now present the Vision 2040, whose as- depend on the actions and measures
pirations are to change the country from that we undertake as Government, pri-
a predominantly low income to a com- vate sector, civil society and as indi-
petitive upper middle income country viduals through short and medium-term
within 30 years with a per capita income National Development Plans. Therefore,
of USD 9,500. It sets out the goals and the commitment and dedication of all
targets to be achieved to realise this Ugandans towards its realization is of
desired socioeconomic transformation. paramount importance. Fellow Ugan-
The aspirations in Vision 2040 have dans, to achieve the aspirations as
been arrived at following a nation-wide stated in this Vision, we need to have
consultation process, and it reflects the the right attitudes and mind-sets, par-
collective understanding, aspirations ticularly towards work, improving our
and determination of Ugandans. competitiveness, and collective partici-
pation in its implementation.
The Vision 2040 is conceptualized
around strengthening the fundamentals I, therefore, call upon all Ugandans to
of the economy to harness the abundant take up the challenge as set out in this
opportunities around the country. The Vision 2040 to enable the country real-
opportunities include; oil and gas, tour- ize its full potential.
ism, minerals, ICT business, abundant
labour force, geographical location and FOR GOD AND MY COUNTRY
trade, water resources, industrialisation,
and agriculture. On the other hand, the
fundamentals include: infrastructure for
(energy, transport, water, oil and gas Yoweri Kaguta Museveni
and ICT); Science, Technology, Engi- PRESIDENT OF THE REPUBLIC OF
neering and Innovation (STEI); land; ur- UGANDA
ban development; human resource; and
peace, security and defence.
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IV | UGANDA VISION 2040
TABLE OF CONTENTS
TABLE OF CONTENTS..................................................................... v
LIST OF TABLES.............................................................................. viii
LIST OF FIGURES............................................................................ ix
LIST OF ACRONYMS....................................................................... xi
EXECUTIVE SUMMARY................................................................... xiii
CHAPTER 1: INTRODUCTION......................................................... 2
1.1. Background.......................................................................... 2
1.2. Context and Rationale.......................................................... 3
1.3. The Vision............................................................................. 4
1.4. Challenges to Uganda’s Development................................. 5
1.5 Structure of the Document................................................... 7
CHAPTER 2: THE Vision ASPIRATIONS, PRINCIPLES,
TARGETS AND POLICY SHIFTS................................ 9
2.1. Aspirations............................................................................ 9
2.2. Principles of Vision 2040...................................................... 10
2.3. Vision 2040 Targets.............................................................. 13
2.4. Required Policy Reforms and Shifts..................................... 16
CHAPTER 3: GROWTH TRENDS AND MACROECONOMIC
STRATEGIES.............................................................. 20
3.1. Growth Trends...................................................................... 20
3.2. Uganda’s Competitiveness.................................................. 23
3.3. Unemployment..................................................................... 26
3.4. Growth Strategy................................................................... 26
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UGANDA VISION 2040 |V
3.5. Key Sectors that will influence GDP Growth over the
Vision period............................................................................ 31
3.6. Macroeconomic Strategies...................................................... 31
3.6.1. Savings and Investments......................................................... 32
3.6.2. Financial Services.................................................................... 33
3.6.3. Balance of Payments (BOP)..................................................... 35
3.6.4. Public Finance.......................................................................... 36
CHAPTER 4: STRENGTHENING FUNDAMENTALS FOR
HARNESSING OPPORTUNITIES.................................. 39
4.1 Opportunities............................................................................ 39
4.1.1 Tourism.................................................................................... 39
4.1.2 Agriculture................................................................................ 45
4.1.3 Oil And Gas.............................................................................. 47
4.1.4 Minerals.................................................................................... 50
4.1.5 Abundant Labour Force........................................................... 51
4.1.6 Industrialisation........................................................................ 54
4.1.7 Knowledge and ICT Sector....................................................... 57
4.1.8 Geographical Location and Trade Opportunities..................... 61
4.1.9 Water Resources...................................................................... 63
4.2 Fundamentals for Development............................................... 67
4.2.1 Human Resource...................................................................... 67
4.2.2 Transport Infrastructure and Services....................................... 70
4.2.3 Energy ...................................................................................... 73
4.2.4 Science, Technology, Engineering and Innovation................... 75
4.2.5 Urban Development.................................................................. 78
4.2.6 Land.......................................................................................... 82
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VI | UGANDA VISION 2040
4.2.7 Peace, Security and Defence ................................................ 83
CHAPTER 5: SOCIAL TRANSFORMATION.................................... 87
5.1. Population:............................................................................. 88
5.2. Health and Nutrition............................................................... 88
5.3. Education and Literacy........................................................... 91
5.4. Care and Protection for the Vulnerable Population Groups.. 93
5.5. Housing Development........................................................... 93
5.6. National Culture..................................................................... 94
5.7. Gender Equality and Women Empowerment for
Socio-economic Transformation........................................... 96
5.8. Environment and Natural Resources (ENR)........................... 98
5.9. Climate Change..................................................................... 100
CHAPTER 6: GOVERNANCE............................................................ 104
6.1. State of Governance............................................................. 104
6.2. Constitutional Democracy..................................................... 106
6.3. Protection of Human Rights.................................................. 108
6.4. Rule of Law............................................................................ 108
6.5. Electoral and Political processes.......................................... 110
6.6. Transparency and Accountability........................................... 110
6.7. Government Effectiveness and Regulatory Quality............... 112
CHAPTER 7: IMPLEMENTATION, MONITORING AND
EVALUATION STRATEGIES........................................ . 115
7.1. Implementation...................................................................... 115
7.2. Financing................................................................................ 118
7.3. Monitoring and Evaluation..................................................... 119
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UGANDA VISION 2040 | VII
LIST OF TABLES
Table 2.1: Baseline Status and Vision Targets...................................... 13
Table 3.1: Destination of Uganda’s Exports (% of total exports).......... 23
Table 3.2: The GDP Trend and Growth Rates Over

the Vision Period................................................................. 30
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VIII | UGANDA VISION 2040
LIST OF FIGURES
Figure 3.1: Uganda’s Comparative Growth Performance with Selected

UMI Countries................................................................................... 20
Figure 3.2: GDP & GDP Per-Capita Trends (1962 - 2010)................................... 21
Figure 3.3: Growth Rates of Key Sectors............................................................ 22
Figure 3.4: The Trade Balance............................................................................. 22
Figure 3.5: Uganda’s Competitivenes with Upper Middle Income

Countries........................................................................................... 24
Figure 3.6: Most Problematic Factors for Doing Business................................. 25
Figure 3.7: Labour Force Distribution by Sectors............................................... 26
Figure 3.8: The Growth Path to the Upper Middle Income Status
by 2040............................................................................................. 28
Figure 3.9: Sector Shares of GDP (Actual and Forecasts)................................... 32
Figure 3.10: Savings to GDP Ratio of Selected Countries.................................. 33
Figure 3.11: Gross Capital Formation as a Percentage of GDP........................... 34
Figure 3.12: Tax Revenue as a percentage of GDP for Selected

Countries........................................................................................ 36
Figure 4.1: Infrastructure Needs for Tourism Development................................. 42
Figure 4.2: Proposed Infrastructure for Mineral Development............................ 52
Figure 4.3: Proposed Economic Zones and Trade Areas.................................... 62
Figure 4.4: Proposed Railway Network............................................................... 71
Figure 4.5: Proposed Framework for STEI System............................................. 76
Figure 4.6: Proposed Strategic Cities & Road Network...................................... 80
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UGANDA VISION 2040 | IX
Figure 4.7: The Planned Road Network for Greater Kampala
Metropolitan Area ............................................................................... 81
Figure 5.1: National and Regional Poverty Estimates.......................................... 87
Figure 5.2: Infant Mortality Rates Over Time (Death per 1000 Live Births) of
Selected Countries............................................................................ 89
Figure 6.1: Impact of Instability on GDP Trends in Uganda................................. 105
Figure 7.1: The Framework for Implementation of The National Vision............... 117
Figure 7.2: Proposed Sequencing of National Vision 2040 Priorities................... 118
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X| UGANDA VISION 2040
LIST OF ACRONYMS
BOP Balance of Payment

BPO Business Process Outsourcing
BTVET Business, Technical and Vocational Education and Training
CAD/CAM Computer Aided Design and Manufacturing
CIID Criminal Intelligence and Investigations Directory
CNDPF Comprehensive National Development Planning Framework
COMESA Common Market for East and Southern Africa
DPP Director of Public Prosecution
EAC East African Community
EACCM East African Community Common Market
ENR Environmental and Natural Resources
EPRC Economic Policy Research Centre
ERP Economic Recovery Program
FAO Food and Agricultural Organization
FDI Foreign Direct Investments
FGM Female Genital Mutilation
GDI Gender Related Development Index
GDP Gross Domestic Product
GKMA Greater Kampala Metropolitan Area
GMOs Genetically Modified Organisms
HDI Human Development Index
HPPs Hydro Power Plants
HRD Human Resource Development
ICT Information Communications Technology
IDPs Internally Displaced People
IRWR Internal Renewable Water Resources
ISO International Organization for Standardization
IT Information Technology
ITES Information Technology Enabled Services
kWh Kilo Watt hour
LDCs Low Developed Countries
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UGANDA VISION 2040 | XI
LG Local Government
LGDPs Local Government Development Plans
LPG Liquefied Petroleum Gas
M&E Monitoring and Evaluation
MDAs Ministries Departments and Agencies
MEAs Multilateral Environmental Agreements
MGLSD Ministry of Gender Labor and Social Development
MICE Meetings Incentives Conferences and Events
MoFPED Ministry of Finance Planning and Economic Development
MSMEs Micro, Small and Medium sized Enterprises
MW Mega Watt
NAPA National Adaptation Plan of Action
NDP National Development Plan
NDPs National Development Plans
NESAP New Economy Skills for Africa Programme
NPA National Planning Authority
PEAP Poverty Eradication Action Plan
R&D Research and Development
S&T Science and Technology
SADC Southern African Development Community
SAP Structural Adjustment Program
SEZs Special Economic Zones
SGBV Sexual and Gender Based Violence
SMEs Small and Medium Enterprises
STI Science Technology and Innovation
STEI Science Technology Engineering and Innovation
TAI Technology Achievement Index
UBOS Uganda Bureau of Statistics
UMI Upper Middle Income
UNFCCC United Nations Framework Convention on Climate Change
UNFPA United Nations Fund for Population Activities
UNHS Uganda National Household Survey
USD United States Dollars
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XII | UGANDA VISION 2040
EXECUTIVE SUMMARY
Uganda Vision 2040 provides develop- The Vision 2040 is conceptualized

ment paths and strategies to operation- around strengthening the fundamentals
alize Uganda’s Vision statement which of the economy to harness the abun-
is “A Transformed Ugandan Socie- dant opportunities around the country.
ty from a Peasant to a Modern and The identified opportunities include: oil
Prosperous Country within 30 years” and gas, tourism, minerals, ICT busi-
as approved by Cabinet in 2007. It aims ness, abundant labour force, geograph-
at transforming Uganda from a predom- ical location and trade, water resources,
inantly peasant and low income country industrialisation, and agriculture among
to a competitive upper middle income others that are to date considerably
country. under-exploited. Achieving the transfor-
mational goal will thus depend on the
It builds on the progress that has been country’s capacity to strengthen the
made in addressing the strategic bottle- fundamentals including: infrastructure
necks that have constrained Uganda’s (energy, transport, water, oil and gas,
socio-economic development since and ICT); Science, Technology, Engi-
independence, including; ideological neering and Innovation (STEI); land use
disorientation, weak private sector, un- and management; urbanisation; human
derdeveloped human resources, inade- resource; and peace, security and de-
quate infrastructure, small market, lack fence.
of industrialization, underdeveloped
services sector, underdevelopment Projections indicate that Uganda will
of agriculture, and poor democracy, graduate into a lower middle income
among others. country by 2017, progressing to an up-
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UGANDA VISION 2040 | XIII
per middle income category by 2032 and other strategic locations;
attaining its target of USD9500 in 2040. • Globally competitive skills
Projections further indicate that Uganda development centres;
will be a first world country in the next • Nuclear power and hydro power
fifty years. To achieve this transforma- plants (Ayago, Isimba,
tion the average real GDP growth rate Karuma, and Murchison Bay);
will have to be consistent at about 8.2 • Science and Technology parks in
per cent per annum translating into to- each regional city;
tal GDP of about USD 580.5bn with a • International and national referral
projected population of 61.3 million in hospitals in each regional cities
2040.
However, to achieve all this, some key
Uganda Vision 2040 identifies key core strategies and policy reforms must take
projects that need to be started includ- place. These include:
ing:
• A Hi-tech ICT city and associated ICT • Review the architecture of govern-
infrastructure; ment service delivery system to act as a
• Large irrigation schemes in different unit, harness synergies and deliver pub-
parts of the country; lic services efficiently and effectively.
• Phosphate industry in Tororo;
• Iron ore industry in Muko, Kabale; • Pursue policies aimed at leapfrogging
• Five regional cities ( Gulu, Mbale, especially in the areas of Science, Tech-
Kampala, Mbarara, and Arua) and five nology, innovation, and engineering;
strategic cities ( Hoima, Nakasongola, human resource development; public
Fortportal, Moroto, and Jinja); sector management; and private sector
• Four international airports; development.
• A standard gauge railway network
with high speed trains; • Develop and implement a National
• Oil Refinery and associated pipeline science technology and engineering
infrastructure; system that will help in initiating, im-
• Multi-lane paved national road net porting, modifying and diffusing new
work linking major towns, cities and technologies.
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XIV | UGANDA VISION 2040
• Front-load investments in infrastruc-
ture targeting areas of maximum oppor- • Develop and nurture a national value
tunities with focus on oil, energy, trans- system to change citizens’ mind sets,
port and ICT. promote patriotism, enhance national
identity and nurture a conducive ideo-
• Accelerate industrialization through logical orientation.
upgrading and diversification to effec-
tively harness local resources, offshor- • Accelerate government reforms in the
ing industries and develop industrial education system and the curriculum to
clusters along value chains. obtain a globally competitive human re-
source with skills relevant to the devel-
• Make land reforms to facilitate faster opment paradigm.
acquisition of land for planned urbani-
sation, infrastructure development, and • Review and strengthen the foreign
agricultural commercialisation among policy to enhance collaboration in ac-
other developments. cordance with existing and future agree-
ments, standards and protocols within
• Pursue a planned urbanization policy the framework of East African Commu-
that will bring about better urban sys- nity, other regional blocs, African Union
tems that enhance productivity, liv- and global community, for the realisa-
ability and sustainability while releasing tion of this Vision.
land for commercializing agriculture.
• Directly invest in strategic areas to
• Strengthen the three arms of govern- stimulate the economy and facilitate
ment and ensure checks and balances private sector growth.
and taking decisions that have national
interest: first, ministers will not be mem- • Develop and implement a specific pol-
bers of Parliament to foster separation icy to attract and retain top rated pro-
of powers; and second, the judiciary fessionals in the Universities to make
will be reformed to make it more inde- Uganda a Center of Excellence in Edu-
pendent and proactive. cation in the region.
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UGANDA VISION 2040 | XV
• Establish a Uganda infrastructure fund revenue from oil and gas, Public Private
to significantly lower the cost of infra- Partnerships, concessional loans and
structure development. grants, borrowing from domestic and
international markets. The revenue from
• Develop a universal health insurance oil and gas will be used to kick start ma-
system through public private partner- jor infrastructure development projects
ship. to enhance the country’s competitive-
ness. The domestic and international
The Vision implementation will be borrowing shall include; domestic and
spearheaded by H.E The President but sovereign infrastructure bonds, venture
remains a responsibility of every citizen and investment funds.
in government, private sector, civil soci-
ety, political organisations and any oth- There will be regular review, monitor-
er institutions. As already noted, it will ing and evaluation of Vision 2040 in line
be implemented in line with the com- with the mechanisms provided for in the
prehensive National Development Plan- Comprehensive National Development
ning Framework. Interventions will be Planning Framework policy.
sequenced and detailed in the 5-year
national development plans and annual
budgets.
The financing of this Vision will be main-

ly by the government, CSOs, develop-
ment partners and the private sector.
Government will mobilise resources
using conventional and innovative non-
conventional means of financing. These
will include; tax and non-tax revenues,
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XVI | UGANDA VISION 2040
1
Chapter
Kiprotich wins a gold med-

al and raises the Uganda
Flag high at the London
Olympics 2012
PAGE
UGANDA VISION 2040 |1
Chapter
INTRODUCTION
1.1. Background 3. Over the last three decades,

the economy has moved from recovery
1. Uganda covers an area of to growth based on short-to-medium
241,038 square kilometers of which term planning and the country imple-
about a third is covered by fresh water mented a number of economic poli-
bodies and wetlands. It is mainly a pla- cies including the Structural Adjustment
teau astride the equator with favorable Programs(SAPs), Economic Recovery
tropical climate and average tempera- Program (ERP) and the Poverty Eradi-
ture ranging from 18 to 28 degrees cen- cation Action Plan (PEAP). As a result
tigrade. It is endowed with numerous the GDP growth has since 2002 been
natural resources. sustained at an average of 6.4 per cent.
The macro-economy has remained rel-
2. The country has a relatively atively stable with inflation rates main-
young population with about 60 per tained at single digit level while public fi-
cent below 18 years of age and a total nance and monetary policies have been
population estimated at 32 million peo- well managed.
ple (UBOS 2010). About 51 per cent of
this are female. Uganda is a peaceful, 4. A review of global development
stable and secure country. It is under paths however, shows that long term
a multi-party democratic dispensation planning is a key factor in propelling
with a decentralized governance sys- social-economic development and eq-
tem. uitable distribution of wealth in many
countries all over the world. A number
PAGE
2| UGANDA VISION 2040
of Asian countries such as Malaysia, to absence of appropriate policy, legal
Singapore, South Korea and Thailand and institutional framework, and lack of
among others, adopted long term plan- ownership at different levels of leader-
ning to guide their development paths. ship. Furthermore, the development
The long term planning helped to guide approach and the economic thinking
these Governments to intervene sys- at that time coupled with both external
tematically and through multiple ap- and internal factors could not allow their
proaches to foster growth. implementation.
1.2. Context and Rationale

5. Uganda’s planning has been
characterized by different approaches. 7. In 2007, Government adopted a
The mixed economy approach to devel- Comprehensive National Development
opment was a key feature of Uganda’s Planning Framework which provides
economic development during 1962- for the development of a 30-year Vision
1971. During this period, two medium- that will be implemented through: three
term plans were developed. However, 10-year plans; six 5-year National De-
this development planning path was velopment Plans (NDPs); Sector Invest-
interrupted by the “Economic War” in ment Plans (SIPs); Local Government
the 1970’s. The early 1980’s saw the Development Plans (LGDPs); Annual
introduction of the Structural Adjust- work plans; and Budgets. The first five
ment Program (SAP) and then the Eco- year National Development Plan opera-
nomic Recovery Program (ERP) in 1987. tionalising this Vision was launched in
Between 1997 and 2008, the Poverty April 2010.
Eradication Action Plan (PEAP) was the
8. In line with this policy, the Vision
overarching planning framework for the
2040 consolidates the previous efforts,
country.
lessons learnt and analysis of our past
6. In 1999 and 2007, Uganda de- development strategies and future pros-
veloped long term perspective develop- pects. It takes into account emerging
ment plans, Vision 2025 and draft Vi- development opportunities including
sion 2035, respectively. However, these the discovery of oil and gas reserves, E-
were not operationalized mainly due revolution, globalization and economic
integration, among others.
PAGE
9. It also gives a unified direction 12. To realize this Vision, Uganda
for the country, mobilises people and re- will need to increase its GDP by over 30
sources to achieve a common goal, and times in the next 30 years to attain the
faster socio-economic transformation level of development observed in Upper
by focusing on specific areas of maxi- Middle Income (UMI) countries. An anal-
mum opportunity. This Vision therefore, ysis of these countries’ development
will assist the country to reposition her- paths and assessment of Uganda’s
self within the global sphere. development potential confirms that it
is possible for the country to attain an
1.3. The Vision
upper middle income status within the
10. Uganda’s Vision is “A trans- next 30 years.
formed Ugandan society from a peas-
ant to a modern and prosperous country 13. Vision 2040 is conceptualized
within 30 years”. This involves changing on harnessing strategic opportunities
from a predominantly low income to a by strengthening the relevant funda-
competitive upper middle income coun- mentals capable of maximizing returns
try within 30 years. It is envisaged that to the economy. The identified opportu-
the country will graduate to the middle nities in this Vision include; oil and gas,
income segment by 2017 and reach a tourism, minerals, ICT business, abun-
per capita of USD 9,500 by 2040. dant labour force, geographical location
and trade, water resources, industri-
11. The Vision attributes, which are alisation, and agriculture. On the other
consistent with the principles of the hand, the fundamentals include: infra-
Constitution, are: (a) independence and structure for (energy, transport, water, oil
sovereignty; (b) democracy and the rule and gas, and ICT); Science, Technology,
of law; (c) stability and peace; (d) knowl- Engineering and Innovation (STEI); land
edgeable and skilled; (e) able to exploit use and management; urbanisation; hu-
and use its resources gainfully and sus- man resource; and peace, security and
tainably; (f) in a strong federated East defence.
Africa with an effective African Com-
mon Market and a strong African De-
fence Mechanism.
PAGE
1.4. Challenges to Uganda’s De- b. Weak public sector manage-
velopment ment and administration; Public Sec-
tor Management and administration is
14. Currently Uganda’s develop-
characterised by weak policy, legal and
ment is constrained by a number of fac-
regulatory frameworks; weak institu-
tors including;
tional structures and systems; oversized
public administration; weak civil society
a. Low Competitiveness; a coun-
and civic participation; inadequate data
try’s competitiveness is the ability to
and information; inadequate stand-
produce goods and services that can be
ards and weak quality infrastructure;
favourably traded on the global market.
overlapping mandates; limited social
It positions a country at an advantage
protection and support systems; and
towards attracting investments. The
weak management of environment and
factors that defines competitiveness in-
climate change. This is exacerbated a
clude; institutions, policies, and factors
weak; decentralisation system, slow
that determine the level of productiv-
implementation characterised by long
ity of a country. These are; Institutions;
procurement cycles, poor enforcement
Innovation; Infrastructure; Microeco-
of standards and regulations, and inef-
nomic environment; Health and primary
fective monitoring and evaluation.
education; Higher education and train-
ing; goods market efficiency; Financial
c. Ideological disorientation; coun-
market development; Technological
tries that have attained upper middle
readiness; Market size; Labour market
income status have clear and well de-
efficiency; and business sophistication.
fined national ideologies. Our political
Based on these factors, Uganda was
history has not provided clear ideologi-
ranked 121 out of 142 countries in terms
cal direction to guide the country’s de-
of overall competitiveness of its goods
velopment path. This has led to failure
and services by the World Economic
to establish and implement a national
Forum in 2010. To develop a strong pri-
value system. The value systems incul-
vate sector and be able to attract For-
cate values such as; patriotism, work
eign Direct Investments, Uganda has to
ethics, integrity, positive attitudes and
improve on the above factors.
PAGE
mind sets, national identity, and positive tries require large amount of capital,
cultural practices. Thus, there is need have high risk and long turn-around
for Uganda to have a well-defined ideol- time and thus less attractive to private
ogy and a national value system which sector.
is subscribed to by every citizen.
g. Slow accumulation of modern
d. Low industrialisation and value infrastructure; Uganda has not accu-
addition; Uganda’s GDP is still largely mulated a sufficient infrastructure base
dominated by primary products. This (roads, railway, energy and water) to
has led to unfavourable balance of pay- lower the cost of doing business and
ment, skills transfer, low levels of em- compete favourably for Foreign Direct
ployment and high poverty levels. This Investments.
is compounded by low Science, Tech-
nology, Engineering and Innovation h. Inadequate human resource;
(STEI) level compared to many devel- Uganda has a large youthful labour force
oped countries. that is poorly educated and skilled. This
has been largely due to inadequate
e. Corruption remains one of education and health care. This can be
Uganda’s major challenges. It increases addressed through emphasising skilling
the cost of doing business and nega- of the youth with globally competitive
tively affects service delivery. According skills to attract Foreign Direct Invest-
to the Transparency International 2010 ments (FDIs) and adequate remunera-
report, Uganda currently ranks 127 out tion of strategic human resource espe-
of 178 countries surveyed. cially in the field of STEI.
f. Limited government investment i. Low level of saving and inad-

in strategic and emerging industries; equate revenue collection; the inade-
over time, government has not invested quate revenue collection has hindered
in strategic and emerging industries that financing of public investments to the
stimulate the establishment of second- expectations of the citizenry. On the
ary and tertiary industries. These indus- other hand, the low level of savings has
PAGE
denied the country long term and cheap fied opportunities and the fundamentals
investment capital. that need to be strengthened in order
to harness these opportunities. Chap-
j. Unfavourable Demographics ter Five discusses social transforma-
Profile; Uganda has one of the young- tion while chapter six covers the gov-
est populations in the world with nearly ernance transformation required. The
half of them aged below 15 years due to last Chapter covers implementation of
a historically high and constant fertility these strategies over the Vision period.
rate of about 6.7 children per woman.
This has resulted in an unfavourable
demographic profile made up largely
of dependants. These dependants are
either too young to work, and yet they
consume the bulk of public services. In
addition, the high growth rates arising
out of the high fertility are putting pres-
sure on delivery of services such as ed-
ucation and health.
1.5 Structure of the Document
15. Chapter one of this Vision covers

the background, context, Vision thrust
and also discusses the challenges to
development that the country faces.
The Second chapter looks at the Vision
aspirations and targets, and policy re-
forms to be undertaken. Chapter three
on the other hand covers the growth
trends and key Macro-economic strate-
gies. Chapter four presents the identi-
PAGE
Chapter
2
PAGE
Chapter
THE VISION ASPIRATIONS,

PRINCIPLES, TARGETS AND POLICY
SHIFTS
2.1. Aspirations b. Ugandans aspire to have unity

in diversity and equal opportunities ir-
16. Nationwide consultations were respective of gender, tribe, ethnicity or
conducted involving various stakehold- religion. Ugandans aspire for a progres-
ers and consensus was reached on the sive and developmental culture that
following aspirations for Uganda’s fu- blends traditional beliefs and national
ture development. values. Ugandans aspire for a future
in which men, women, youth, children,
a. Ugandans aspire to live and and persons with disabilities are em-
work in a peaceful, secure, harmoni- powered to participate as equal part-
ous and stable country, and at peace ners in development.
with its neighbours, where the rule of
law prevails and respect for fundamen- c. Ugandans desire to be re-
tal human rights is observed. Ugan- sourceful and prosperous nationals
dans want a corruption free nation with contributing to national development
strong democratic structures and sys- through gainful employment, savings
tems empowered to be in charge of and investments. Ugandans desire to
their own destiny. earn high incomes and have a stable
economic environment. They aspire to
be part of a strong East African Federa-
tion.
PAGE
d. Ugandans desire to have access 17. These aspirations, as well as
to affordable quality health and educa- emerging development opportunities
tion services. Ugandans aspire for a and global trends, provide a basis and
healthy, literate and well informed soci- foundation for the realisation of the Vi-
ety. We desire to live in clean and well sion 2040.
planned settlements with access to all
social amenities. Uganda aspires to be 2.2. Principles of Vision 2040
a society free of hunger with strong so- 2.2.1 Ownership
cial safety nets.
18. The realisation of Vision 2040
e. Ugandans desire to have world requires the wholehearted support of
class infrastructure and services, and all stakeholders. The same applies to
modern technology to improve produc- the subsequent National Development
tivity and production. Ugandans also Plans derived from this vision and in-
aspire to have access to clean, afford- tended to achieve its goals and ob-
able and reliable energy sources to fa- jectives. The ownership is not only for
cilitate industrialization. the formulation process but also for a
smooth and successful implementation
f. Ugandans desire a green econ- of programmes, projects and other ini-
omy and clean environment where the tiatives.
ecosystem is sustainably managed
and the liveability of the urban systems 2.2.2 Political Will
greatly improved.
19. Vision 2040 requires strong
g. Ugandans aspire for a highly backing from the political leadership at
moral and ethical society whose citi- all levels.
zens are strong in religious and spiritual
values, and instilled with the highest of 2.2.3 Good Governance
ethical standards. A society in which
people practise and profess their cus- 20. Good governance is the positive
toms, cultures and religious beliefs and exercise of authority. It is characterized
yet, feeling that they belong to one na- by citizen transformation and participa-
tion. A society with resourceful and sta-
ble family units.
PAGE
10 | UGANDA VISION 2040
tion in governance, control of corrup- ing the necessary fundamentals. In this
tion, political stability, and respect for way the country’s targeted growth will
the rule of law, Government effective- not hinge on a few sectors, as many
ness, regulatory quality and effective others will have the potential to contrib-
knowledge management. It is a prereq- ute to growth.
uisite for achieving the required growth
rates and therefore social transforma- 23. The second dimension of bal-
tion. Good governance is therefore of anced development is linked to ensur-
paramount importance for successful ing that all regions of the country benefit
implementation of Vision 2040. from growth of the national economy
by equitably using national resources,
2.2.4 Resource Availability better infrastructure and other develop-
ment projects to realise higher invest-
21. It will be extremely important to ments levels required to fight poverty,
ensure the availability of resources for promote social equity and harmony.
implementing the planned programmes. The other dimension of equity is promo-
This will require taking measures to tion of gender and human rights. The
eliminate wasteful spending, fighting Vision follows various international con-
corruption, intensifying accountability, ventions and resolutions that promote
improving the allocation of resources, equal opportunities and enjoyment of
increasing efficiency in the use of re- human rights for both men and wom-
sources and giving more attention to ef- en. Gender, disability and human rights
fectiveness through monitoring and re- mainstreaming are a core part of the
views. Mobilisation of domestic revenue planning process
will be enhanced.
2.2.6 Behaviour Change
2.2.5 Balanced Development
24. Behaviour change is needed in
22. While recognising that the econ- many public and private sector groups
omy will reflect Uganda’s comparative as well as in many citizens, and is crucial
advantage, implementation of the Vi- for rapid economic growth and transfor-
sion 2040 will encourage the harness- mation. The people will need to adopt a
ing of key opportunities by strengthen- new attitude to public property, assets,
PAGE
UGANDA VISION 2040 | 11
amenities and the environment and be ment. For several decades, develop-
patriotic to their country. They should ment has concentrated on improvement
demonstrate and exercise concern for and advancement of economic, social
other citizens, especially the elderly, the cultural and political conditions and less
disabled, and children. This includes on preserving the environment. This has
being committed to promoting gender resulted into global warming and other
equality so that men, women, boys and adverse environmental conditions asso-
girls have equal opportunities and ac- ciated with climate change. Less focus
cess to resources. Ugandans should on gender inequalities has also often
start appreciating hard work, discipline, promoted discrimination against the
time management and patriotism. female sex. The implementation of the
Vision should ensure sustainable and
2.2.7 Linkage with the National equitable development.
Planning Processes
27. The design and implementation
25. The road to transformation will of the Vision emphasizes sustainable
require careful planning and commit- development through preservation of
ment of resources. This Vision 2040 is natural resources such as forests and
expected to be an all encompassing wetlands. Access to basic needs such
perspective plan for the thirty years, as education, health services, food,
which will also act as a guide to any fu- housing and the equitable distribution
ture planning. In essence, all ministries, of incomes among all citizens shall be
departments and autonomous and promoted. As part of implementing sus-
semi-autonomous entities will realign tainable development, every person
their development priorities with the Vi- shall be assured of a life of dignity, in-
sion. cluding a life in a society that respects
and helps realize human rights.
2.2.8 Sustainable and Equitable
Development
26. Sustainable development is

about using resources to meet human
needs while preserving the environ-
PAGE
2.2.9 Effective Implementation, orient, or otherwise alter the proposed
Monitoring and Evaluation initiatives. Effective M&E is important
Mechanism for measuring and reporting progress
towards the planned objectives and re-
28. In the course of the implemen- lated targets.
tation of the various Vision 2040 initia-
tives, it will be important to determine 2.3. Vision 2040 Targets
whether or not the country is on course
towards achieving its goals and objec- 29. In line with Vision 2040 and hav-
tives, whether or not progress is being ing benchmarked it with selected Upper
made and success being registered. An Middle Income (UMI) countries that have
effective implementation mechanism achieved similar level of development
should lead to the achievement of the status, a number of socio-economic in-
goals and objectives. To this end, effec- dicators and targets have been devel-
tive monitoring and evaluation will be oped for Uganda. Table 2.1 presents the
undertaken to provide relevant informa- baseline and desired targets. These de-
tion which will be used to fine-tune, re- velopment targets are reference points
Table 2.1: Baseline Status and Vision Targets

Baseline
Target
No. Development Indicator Status:
2040
2010
Per capita income USD 506 USD 9500
Percentage of population below the

24.5 5
poverty line
Income distribution(GINI Coefficient) 0.43 0.32
Agriculture 22.4 10.4
Sectoral composition of
Industry 26.4 31.4
GDP (%)
Services 51.2 58.2
PAGE
Agriculture 65.6 31
Labor force distribution in
line with sectoral Industry 7.6 26
contribution (%)
Services 26.8 43
% share of national labor force employed 70.9 94
Manufactured exports as a % of total

4.2 50
exports
Gross Capital Formation as % of GDP 24.1 30
Saving as a % of GDP 14.5 35
ICT goods & services as a % of total

0 40
export
Technology up-take & diffusion
0.24 0.5
(Technology Achievement Index (TAI))
Public expenditure as a % share of R&D
0.1 2.5
to GDP
Innovation as measured by patents
3 6000
registered per year
Electricity consumption (kWh per capita) 75 3668
% population with access to electricity 11 80
Water consumption (m3 per capita) 26 600
% population with access to safe piped

15 100
water
% of standard paved roads to total road
4 80
network
% of cargo freight on rail to total freight 3.5 80
PAGE
Urban 51 100
% of population in planned
settlements
Rural 0 100
% level of urbanization 13 60
Agriculture 390 6,790
Industry 3,550 24,820

Labor Productivity (GDP
per Worker - USD)
Services 1,830 25,513
Total 1,017 19,770
Life expectancy at birth (years) 51.5 85
Infant mortality rate per 1000 live births 63 4

Maternal mortality rate per 100,000 live
438 15
births
Under 5 mortality rate per 1000 96 8
Child stunting as a % of under 5s 33 0
Literacy Rate (%) 73 95
Gender Related Development Index (GDI) 0.51 0.9
Population growth rate 3.2 2.4
Forest Cover (% land Area) 15 24
Wetland Cover - % of total area 8 13
Corruption Perception Index 2.5 7.1
Source: NPA projections and bench marked data from various sources.
PAGE
to indicate the desired level of develop- regulatory and institutional framework.
ment and social-economic transforma- Government will also promote and en-
tion. courage public-private partnerships in a
rational manner. Furthermore, Govern-
2.4. Required Policy Reforms and ment will invest in strategic areas and
Shifts areas of national interest. In addition,
the Government will continue to pursue
30. Over the Vision period, the outward-oriented policies by encour-
planning approach will be based on aging foreign investments and exports
harnessing strategic opportunities by with high value addition, as well as
strengthening the relevant fundamen- pursuing sound macroeconomic policy
tals that facilitate maxima returns from and management.
the opportunities. This will be coupled
with increasing the level of the country’s 32. There shall be continuous re-
competitiveness to enable production view and change of the architecture of
of globally competitive goods and ser- Government service delivery system to
vices. In addition, efforts will be geared enable Government act as a unit and
towards improving social development deliver public services that are respon-
indicators while strengthening govern- sive to the needs of the people and cog-
ance systems and structures. To attain nizant of the global dynamics. Govern-
this Vision all development plans at all ment will adopt a “business approach”
levels shall follow this planning ap- in the implementation of this Vision. The
proach to foster faster socio-economic local government service delivery sys-
transformation. tem will be reviewed and restructured
for better service delivery and wealth
31. A quasi-market approach, which creation. Continuous institutional re-
includes a mix of Government invest- structuring will be implemented and the
ments in strategic areas and private country will adopt new public manage-
sector market driven actions, will be ment techniques immediately. This will
pursued. The private sector will remain enable Government to deliver services
the engine of growth and development. more efficiently and effectively while
Government will continue its facilitat- harnessing synergies.
ing role in provision of conducive policy,
PAGE
33. Government will make land re- innovation, human resource develop-
forms to facilitate faster acquisition of ment, public sector management, and
land for planned urbanisation, infra- private sector development. In addition,
structure development, and agricultural a national Innovation system will be de-
commercialisation among other devel- veloped and supported over the Vision
opments. period.
34. To achieve faster socio-eco- 36. To provide the necessary im-

nomic transformation, Government pulse to the economy, Government will
will invest in better urban systems that embark on front-loading of investments
enhance productivity, liveability and in infrastructure. The key infrastruc-
sustainability. These urban areas will ture areas will be in oil and gas, energy,
be centres of industrial development, transport, water for production, STEI
financial, trade, education and other and ICT.
services that will foster economic pro-
ductivity. Uganda will strengthen urban 37. Government will reform and
infrastructure and public service facili- optimize the industrial structure while
ties, increase the overall carrying ca- establishing a modern industrial sys-
pacity of cities and towns and raise the tem that will give impetus to industrial
level of urban management and servic- transformation. Efforts will be geared
es. Government will adhere to scientific to transforming and upgrading manu-
planning and strict management. The facturing industries and technology
promotion of urbanization will enable upgrading in enterprises. Uganda will
Government to provide better services accelerate the cultivation and develop-
like basic physical infrastructure, hous- ment of strategic emerging industries
ing and social amenities. It will also free including the next generation IT indus-
up land for mechanized and commer- tries, aerospace industries, integration
cial agriculture. of telecommunication network and in-
ternet. Government will give impetus to
35. Government will employ and the development of industries in areas
support policies aimed at leapfrogging of new materials industries, bio-tech-
many areas of the economy. The focus nology, heavy industries and equipment
of leapfrogging will be in the areas of manufacturing.
science, technology, engineering and
PAGE
38. A policy on the national value 41. Government will review devel-
system will be developed and imple- opment financing policies to facilitate
mented to address the current ideo- faster accumulation of development
logical disorientation, citizens’ attitudes infrastructure. The sources of funding
and mind sets, non-progressive cultural will include; tax and non-tax revenues,
practices to nurture patriotism and na- Public Private Partnerships (PPPs),
tional unity. This will produce a respon- concessional loans and grants, revenue
sive and productive citizenry required from oil and gas and borrowing from
for transformation. There is need to domestic and international markets. Ini-
foster a sense of optimism, unyielding tially, government will make extra effort
spirit and a call to fulfil our constitution- to increase domestic tax revenue as the
al duties and responsibilities as citizens main mode of financing Government
using every available opportunity. expenditure. Government together with
Development Partners will also explore
39. Government will review and alternative financing mechanisms to ac-
strengthen foreign policy to enhance cess significant funds from commercial
collaboration in accordance with exist- and investment banks at concessional
ing and future agreements, standards terms for front-loading infrastructure
and protocols within the framework of development. One of the alternative fi-
East African Community, other regional nancing mechanisms is to use grants to
blocs, African Union and global com- subsidize and lower the interest rates of
munity, for the realisation of this Vision. commercial loans.
40. To strengthen the three arms

of government and ensure checks and
balances, and taking decisions that
have national interest: first, ministers
will not be members of Parliament to
foster separation of powers; and sec-
ond, the judiciary will be reformed to
make it more proactive.
PAGE
3
Chapter
Industrialisation will be
critical in absorbing the
country’s labour force.
PAGE
Chapter
GROWTH TRENDS AND

MACROECONOMIC STRATEGIES
3.1. Growth Trends East Asian countries which were at the

same level of development, for example,
42. Uganda’s economic growth South Korea and Malaysia (see figure
performance since the 1960(s) has been 3.1). Over a period of nearly 50 years,
relatively slow compared to some of the Uganda’s GDP per capita increased
Figure 3.1: Uganda’s Comparative Growth Performance with Selected UMI

Countries
Source: World Bank online database
PAGE
Figure 3.2: GDP & GDP Per-Capita Trends (1962 - 2010)
Years
Source: World Bank online database
from USD 63.8 in 1962 to only USD 44. The main drivers of the growth as
506 in 2010. On the other hand, South depicted in figure 3.3 have been posts
Korea GDP per capita increased from and telecommunications, construction
USD103 to USD 21, 000 over the same and mining sectors. More recently, the
period. growth of the telecommunication and
mining sectors have been instrumental
43. The GDP growth has varied over in the country’s growth largely driven by
the period with the highest average technology improvements in ICT and in-
growth experienced between 2005 and vestments in oil and gas sector.
2010 as shown in figure 3.2. Although
growth in per capita income has been 45. Uganda’s exports both by com-
slow, the real GDP (billions of Dollars) position and value have been growing
has been steadily increasing since 1986 for the last ten years. However, the im-
except for period of 1988 to 2002 due to ports have been increasing at faster rate
re-basing. Since 2003, the cumulative mainly due to importation of high value
growth gradient has been steeper an consumer and investment goods thus
indication that the country is in a clear widening the trade deficit. As a result
stage of take-off. the trade balance has more than dou-
PAGE
Figure 3.3: Growth Rates of Key Sectors
Source: UBOS (Statistical Abstracts)
bled from USD1.2b in 2006 to USD2.6b partly due to low demand for Uganda’s
in 2010. The trend of the trade deficit is exports in advanced economies. These
as presented in figure 3.4. The balance exports are mainly characterized by pri-
of payments has also been unfavourable mary, low value and non-hi-tech prod-
with a deteriorating trend in recent years ucts.
Figure 3.4: The Trade Balance (1990 - 2010)
Source: UBOS (Statistical Abstracts)
PAGE
Table 3.1: Destination of Uganda’s Exports (% of total exports)
Region 2003 2004 2005 2006 2007 2008 2009 2010
COMESA 27.7 26.8 30.7 33.1 53.5 58.3 61.3 59.0
Other Africa 8.6 5.7 4.8 4.0 6.8 5.1 5.6 5.2
European Union 26.3 27.3 31.1 17.7 17.4 18.2 14.6 16.9
Other Europe 14.8 17.1 10.1 3.3 4.9 6.3 4.1 3.2
North America 2.7 2.9 2.3 1.1 1.3 0.8 1.6 1.1
Middle East 3.5 5.6 10.8 13.3 10.2 5.5 4.1 6.1
Asia 9.3 8.9 7.5 5.0 3.9 3.9 4.3 4.8
South America 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.1
Rest of the World 0.4 0.0 0.1 0.0 0.0 0.1 0.1 0.2
Unknown 6.6 5.7 2.5 2.4 2.0 1.9 4.2 3.4
Source: UBOS (Statistical Abstracts various issues)
46. Table 3.1 indicates that region- online database). Domestic resources
al trade is taking an increasing share are very critical because they help the
of Uganda’s exports, while the Middle country to mitigate the adverse impact
East is also emerging as a major export of volatility and uncertainty in aid flows.
destination. The European Union which
in the past was the leading destination 3.2. Uganda’s Competitiveness
for Uganda’s exports now accounts for
about one quarter of total exports. 48. The country’s competitiveness
measured by the competitiveness of its
47. The revenue collection perfor- goods and services is one of the big-
mance measured by tax to GDP ratio gest challenges to foster transforma-
has varied. The ratio stood at about 12.6 tion. According to the World Economic
per cent in 1970/71 declining to 6.5 per Forum Global Competitive Index 2010
cent by 1989/90. Revenue performance ranks Uganda number 121 out of 142
has since improved, peaking at 15.8 per countries. In comparison with countries
cent in 2006/07 before declining to 13.1 Uganda is benchmarking, our level of
per cent in 2008/09 (UBOS). This is still competitiveness is still very low, espe-
below the Sub-Saharan Africa average cially in key transformational indicators
of about 20 per cent and still lower than such as infrastructure, techonological
Tanzania and Kenya at 17 per cent and readiness, innovation and higher educa-
19.5 per cent, respectively (World Bank tion and training.
PAGE
Figure 3.5: Uganda’s Competitivenes in Comparison with Upper Middle
Income Countries
Source: World Economic Forum, 2009/10
49. The World Economic Forum, rates, inadequate supply of infrastruc-

Global Competitiveness Report 2009/10 ture, poor work ethic and Government
ranks Uganda 112th out of 183 coun- bureaucracy, as shown in figure 3.6.
tries on a wide range of business indica-
tors. This ranking is based on identified 50. These constraints have hindered
factors that affect the business environ- the growth of Uganda’s private sector. It
ment in a country including; registering is still weak and has been struggling to
properties, trading across borders, pro- respond to the challenge of becoming
tecting investors, starting a business, the engine of growth in the country. As
enforcing contracts and getting credit. of 2010, it is estimated that nearly 90per
The major constraints affecting doing cent of the private sector are micro and
business in Uganda include; poor ac- small enterprises yet employing over
cess to finance, corruption, high tax 80per cent of the total workforce in the
PAGE
Figure 3. 6: Most Problematic Factors for Doing Business
Source: World Economic Forum, Global Competitiveness Report 2009-2010
country and producing largely for the 51. The labour force in agriculture
domestic market. Other bottlenecks to slightly reduced from 71.6per cent in
private sector growth include: limited 2005/06 to 65.6 per cent in 2009/10,
access and use of modern technolo- though significant reduction was expe-
gy; insufficient engineering manpower; rienced in the sector share contribution
negative attitude towards work leading to GDP. The labour force in the industrial
to low labour productivity; limited ac- sector remained nearly the same over
cess to credit; insufficient incentives; the period. There was a slight increase
high production costs; low productivity; in the labour force employed in the ser-
and low profitability. vices sector but this is not commen-
PAGE
surate with the increase in the sector’s are becoming a social and economic
contribution to GDP. This inability of the threat. The failure to match the skills
industrial and service sectors to absorb needed in the economy creates a gap
the country’s labour force is a challenge in the human capital which is critical for
that shall be addressed for effective economic and social transformation.
transformation.
3.4. Growth Strategy
3.3. Unemployment
53. The thrust of Uganda’s growth
52. Uganda has a big challenge of strategy for the realization of this Vision
a labour force that is largely under or is anchored around harnessing of op-
unemployed due to inappropriate skills portunities by strengthening the funda-
and the slow labour absorptive capacity mentals.
of the economy. The result has been a
large number of unemployed youth who
Figure 3.7: Labor Force Distribution by Sectors
100 4.4
5.0 7.5 6.1 7.6
90 15.2 17.3
23.4 22.3
80 26.8
Size of Labour Force (%)
70
60
50
40 79.8 78.3
69.1 71.6
30 65.6
20
10
0
1992 1999/0 2002/3 2005/6 2009/10
Survey Year
Agriculture, forestry and ﬁshing Services Industry
Source: UBOS (National Household Surveys-various years)
PAGE
54. As a result of globalization and bound scenario is where per capita in-
the unpredictability of many macro- come is USD 6,200, the average of all
economic variables, it is a challenge upper middle income countries. The tar-
to estimate the macro-economic pa- get for this Vision therefore is to achieve
rameters over a thirty year period with the likely scenario of USD9,500 and with
a fair degree of accuracy. This strategy this scenario the country’s total GDP is
provides for a broader perspective of expected to be about USD580bn by
direction based on empirical forecasts 2040.
and benchmarking with selected UMI
countries. 57. As shown in the figure 3.8,
Uganda will graduate into a lower mid-
55. Based on the analysis of experi- dle income country by 2017, progress-
ences of UMI countries, global trends, ing to an upper middle income cate-
Uganda’s available opportunities, cur- gory by 2032 and attaining its target of
rent growth trends and projected popu- USD9500 in 2040. Projections therefore
lation growth rate, Uganda will achieve indicate that Uganda is likely to attain
a target of USD9500 per capita by 2040. a first world status within the next fifty
years.
56. The projected growth over
the period will have a lower bound 58. The projected population growth
of USD6200 and an upper bound of assumes implementation of the nation-
USD12000. All efforts will be geared al population policy and other policy
towards enabling the country to reach changes in education and health among
the upper bound of USD9500 as seen others will result into a gradual slow-
from fig. 3.8. The upper bound scenario down in population growth rate from
is associated with per capita income the current 3.2 percent to 2.4 percent
of about USD12,000, that is, the bor- per annum resulting in a population of
derline between the upper middle and about 61million by 2040.
high income country status. The likely
scenario is where the per capita income 59. Table 3.2 indicates estimates
is USD9500, the average of the upper of nominal GDP and associated real
middle income countries whose per growth rates at which the economy is
capita is at least USD 6,200. The lower likely to grow, to achieve the USD9500
PAGE
Figure 3.8: The Growth Path to the Upper Middle Income Status by 2040
28 |
PAGE
GDP and GDP Per Capita Targets
800
Upper
Lower Income Lower Middle Income Middle Income 12000
UGANDA VISION 2040

700
2040; 9,480 10000

600
9500
500 8000
400
6000
GDP in US$, Billions

300 2032: 4,363
GDP per capita (US$)
4000
200
2000
100 2017; 980
2010; 506
- 0
2000 2005 2010 2015 2020 2025 2030 2035 2040
Year
Upper Limit Target Lower Limit GDP per Capita (Secondary Axis)
Source: NPA Estimates

per capita. Under this scenario eco- high output growth every five years in
nomic growth rate is expected to rise the Vision period.
from the current 5.7 per cent to a five
year average of 8.4per cent per annum 61. As noted in table 3.2, agriculture
by the year 2025 before it gradually de- will grow at an average rate of about
clines to an average of 7.8per cent in five per cent, while industry and ser-
the last five years of the Vision. What vices sectors will grow at an average of
is critical in this scenario is having the over nine per cent. Uganda will achieve
ability to sustain this growth with some this by sustaining growth in the indus-
inbuilt momentum for high real growth trial sector between 8 and 10 percent
during the period. Uganda’s nominal in- per annum as a result of upgrading the
come will grow faster through the Vision industrial structure, changing factor en-
period with GDP projected to multiply dowments, introducing new technolo-
by 1.5 (2015-2020) to 2.6 (2035-2040) gies and realignment of infrastructure to
times every five years. the new economic realities. While prior-
ity will be on facilitating the entry of new
60. The projected growth trend of firms in industries that are in line with
the GDP is achievable since other coun- the country’s existing comparative ad-
tries have been able to achieve even vantage, new ones will be developed in
higher growth in income at five year in- strategic areas such as the petrochemi-
tervals. Data available from World Bank cal industries as offshoots from the oil
indicated that many countries were able refining industry. Agriculture will be sup-
to double their output every five years ported to trigger agro based industries,
in the recent years. Between 2000 and food and nutrition security.
2010 the countries such as Zambia,
Ghana, Azerbaijan, Sudan, Angola, Ka- 62. Achieving these growth targets
zakhstan, Indonesia, India, China, Ku- require targeted investment in the key
wait, and Qatar were able to double sectors of the economy like the oil and
their GDP every five years for over 10 gas, manufacturing, tourism among
years. This therefore demonstrates the other sectors. In addition, sustaining
viability of Uganda’s projected growth these growth rates will require contin-
and consolidates support for Uganda’s ued implementation of prudent fiscal,
bid to develop its capability to sustain monetary and exchange rate policies.
PAGE
Table 3.2: The GDP Trend and Growth Rates Over the Vision Period
Nominal GDP at Market Prices (USD, Billions) Real GDP Growth Rates
Economic
2012-2015
2016-2020
2021-2025
2026-2030
2031-2035
2036-2040
Sector
2010
2015
2020
2025
2030
2035
2040
Total GDP 17.0 24.2 41.2 83.6 167.2 319.6 580.5 8.44 8.58 8.35 8.22 8.07 7.83
Agriculture 3.8 5.3 7.8 13.6 23.4 38.5 60.1 5.24 5.37 5.15 5.02 4.88 4.65
Industry 4.5 6.7 12.0 25.1 51.4 99.6 182.6 9.67 9.52 9.05 8.71 8.40 8.04
Services 8.7 12.1 21.5 44.9 92.5 181.5 337.8 9.30 9.35 9.05 8.85 8.65 8.37
Source: NPA, Estimates
Significant reforms will continuously be ucts and technologies. Government will

implemented in the financial sector in further facilitate coordination of invest-
order to increase resource mobilization ments and provide compensation for
and access taking into account global externalities for firms that take risks
dynamics. Further reforms will be need- and invest in new but strategic areas,
ed in the trade sector and in resource without compromising the rights and re-
mobilization and management with the sponsibilities of the citizens.
view to reducing overhead, and overall
cost of doing business. Government will 63. In the early years of this Vision,
invest in collecting and providing infor- the exploitation of the oil and gas re-
mation in support of private investment sources will be crucial to spur economic
decision making in regard to new prod- growth and development in the country.
PAGE
However, for the country to fully benefit tors such as the telecommunication,
from the oil and gas resources and to construction and mining will be crucial
achieve its Vision will require fiscal pru- in driving the growth of the country.
dence in the use of revenues from these
resources. 66. The structural transformation
of the economy will continue with the
64. Investment in key infrastructure services sector contributing the highest
such as energy generation, road and proportion to GDP, followed by industry
rail, and social infrastructure and in- and agriculture. In line with this, a dras-
vestment in technology enhancing pro- tic change is to occur in the percentage
duction processes will spur productiv- shares of the labour force employed in
ity and hence the overall growth of the these sectors, with faster redistribution
economy. from the current 65.6% in agriculture to
the other sectors. Government will fos-
3.5. Key Sectors that will influence ter increased mobility of labour through
GDP Growth over the Vision period creation of incentives for an increase in
relevant training and skills re-orientation
65. Figure 3.9 shows structural and provision of greater incentives for
change in sector contribution to GDP not only higher innovation at firm level
that is likely to take place up to 2040, but also increased factor productivity.
based on the likely growth trends sce-
nario. It shows that the services sec- 3.6. Macroeconomic Strategies
tor is currently the largest contributor to
GDP and will continue to dominate up to 67. Over the long-term, Government
the year 2040, followed by industry and will expand and exploit the productive
agriculture sectors. The major transfor- potential of the economy by ensuring
mation will however be achieved with that there is appropriate growth in in-
further movement of labour force from vestment spending as a proportion of
agriculture to industry and service sec- national income, increase in growth of
tors. This will require a major policy shift private capital and labour utilization and
in the development of the industrial sec- productivity. Incentives will be provided
tor and investment in human capital in to increase the size of the productive
Uganda. The continued growth of sec- labour by fostering labour mobility, in-
PAGE
crease research and development ac- 3.6.1. Savings and Investments
tivities and the utilization of research
and innovation products. 69. Government will ensure that
there are mechanisms to increase gross
68. Maintaining macroeconomic national savings from the current level
stability will be critical for the imple- of 14.5 percent to about 35 percent of
mentation of Vision 2040 managed GDP by 2040. As a source of invest-
through short and medium term instru- ment finance, Government will among
ments. Macro-economic stability is a other things rationalize pension funds
necessary but not sufficient condition management. Strategies will be devel-
to achieve the desired growth. Improv- oped to promote a savings culture and
ing efficiency and increasing total factor create diverse saving opportunities in
productivity as indicated above will be the country.
the core to achieve Vision 2040 growth
targets.
Figure 3. 9: Sector Shares of GDP (Actual and Forecasts)

(% of GDP)
Years
PAGE
70. Over the Vision period, Govern- 72. There continues to be insuf-
ment investment expenditure will in- ficient financial services infrastructure
crease well beyond the current levels of across the country, limited number of
about 24 percent of GDP and the areas bank branches and poor access to ru-
of investments will include; infrastruc- ral financial services. Due to low sav-
ture and human capital development. ing culture, there is a shortage of de-
velopment finance and the available
3.6.2. Financial Services funds are extremely expensive. On the
demand side, the levels of creditwor-
71. Access to financial services still thiness and enterprise management
remains low, for example by 2009, only capacity contribute to the high cost of
28 percent of the population had ac- credit. On the supply side, there are still
cess to formal financial services. Most high intermediation costs, including the
small and medium scale enterprises in cost of monitoring and enforcement of
the country still obtain credit from infor- loan contracts. There are high risks
mal financial service providers. This is a and uncertainties that make develop-
serious challenge to access to finance ment finance expensive. These factors
for development, particularly affordable affect access to financial services yet
long term finance. there are market and institutional fail-
Figure 3.10: Savings to GDP Ratio of Selected Countries
45
40
35
Savings to GDP Ratio
30
25 Uganda
20 Malaysia
15 Botswana
10 South Africa
5 Mauritius
-
Korea Republic
2005-2010
1995-2000
2000-2005
1980-1985
1985-1990
1990-1995
1970-1975
1975-1980
Period (Years)
Years (Period)
Source: World Bank, 2011
PAGE
Figure 3.11: Gross Capital Formation as a Percentage of GDP
45
40
35
GKF (% of GDP)
30
25
20
15
10
5
-
2005-2010
1990-1995
1995-2000
2000-2005
1980-1985
1985-1990
1970-1975
1975-1980
Period (Years)
Malaysia Mauritius South Africa Uganda South Korea
Source: World Bank Online Database, 2011
ures all of which need to be addressed. to reduce the cost of doing business.
In order to develop the financial sector, These measures will include; strength-
consideration will have to be made in ening collateral registration and the
regard to short and long-term market credit rating bureau system, individual
exchanges, the level of monetization identification (by establishing a national
of the economy and the generation of identity system), supervision to minimize
sufficient savings. Capitalisation of the collusion in the financial sector and pro-
capital market institutions and creation moting public –private – partnerships in
of financial literacy will be promoted. favor of rural financial transformation.
73. In line with the economic inte- ii. Increased availability of long-
gration process, Government will over term development finance by imple-
the Vision period focus on achieving the menting reforms in the pension sector;
following goals:
iii. Increased credibility of the finan-
i. Ensure increased access to cial systems in the country by strength-
credit by putting in place measures ening anti-money laundering institu-
PAGE
tions and building capacity in the sector tive system to attract and expand in-
to adhere to acceptable international vestments in export commodities. The
financial governance standards includ- incentive system will facilitate produc-
ing enhanced financial sector supervi- tivity enhancement in production for
sion; exports. Particular emphasis will be
placed on encouraging exports of high
iv. Promoting Capital Market devel- value and Hi-Tech products to high end
opment in the country by enhancing the markets.
capacity of institutions regulating and
participating in activities of the sector; 75. During the Vision period, manu-
facturing of consumer, investment and
v. Deepening and broadening of Hi-Tech goods, and value addition to
the financial sector by promoting re- agricultural products will be promoted.
search in financial development; The manufacturing of consumer goods
will reduce on the import bills and in-
vi. Becoming a regional center of crease trade revenues. A deliberate
excellence in international financial ser- policy to encourage the manufacture
vices. of alternative consumer and investment
goods and participation in international
vii. Strengthening regulatory mech- value chains will be promoted.
anisms for efficient and fair functioning
of the financial sector. 76. Trade policies will be reviewed
with the aim of facilitating efficient ex-
3.6.3. Balance of Payments (BOP) change and management of the qual-
ity and value of imports. In addition,
74. The strategy to improve trade appropriate policies and incentive
balance is to: increase and diversify ex- schemes will be put in place to attract
ports and ensure stable supply to meet capital inflows (FDI, Short-term portfo-
market targets; identify new export lio flows and remittances) with the aim
destinations in regional and emerging of improving capital account compo-
markets; ensure that the exports are nent. Policy adjustments will be part of
competitive and meet international the long-term strategy to encourage re-
standards; develop an effective incen- investment of capital by investors resi-
dent in the country.
PAGE
3.6.4. Public Finance ernment will increase expenditure in pri-
ority areas in line with this Vision without
77. Maintaining a prudent fiscal pol- compromising macroeconomic stabil-
icy is crucial for macroeconomic stability. Budget policy will aim at increasing
ity and private sector growth. Govern- efficiency in allocation while facilitating
ment will ensure that the bulk of the leapfrogging in key areas through public
expenditures are financed by domestic investments.
revenues. In addition, public expendi-
ture will be managed to ensure public 79. Uganda will develop its capac-
debt sustainability. Given that the coun- ity to maintain a strong revenue effort.
try has considerable infrastructure defi- Revenue to GDP ratio is to increase
ciency, the revenues generated from oil from the current 13 per cent to over 25
and gas resources during the first years per cent by 2040. The increase in tax
will largely be used to close these infra- revenue will be achieved through; di-
structural gaps. versification of tax sources, introduc-
tion of new taxes in an effort to widen
78. In order to ensure that public the tax base especially in areas that are
investment responds to meeting the currently not taxed at all. This will also
long-term development objectives gov- call for major institutional and tax policy
Figure 3.12: Tax Revenue as a Percentage of GDP for Selected Countries
30.00
25.00
Tax Revenue (% of GDP)
20.00 Uganda
Malaysia
15.00 South Africa

Mauritius
10.00 Korea Republic
Kenya
5.00
-
1985-1990 1990-1995 1995-2000 2000-2005 2005-2010
Period (Years)
Source: World Bank, 2011
PAGE
reforms in tax policy development and
tax management and administration.
80. Over the Vision period, donor

support is expected to decline from
the current 27 per cent of GDP to less
than 5 per cent by 2040. The Govern-
ment will ensure that the present value
of public debt, as the sum of short-term
external debt plus the discounted sum
of total debt service payments due on
public, publicly guaranteed, and pri-
vate non guaranteed long-term external
debt over the life of existing loans, as
a percentage of gross national income,
remains low and sustainable.
PAGE
Chapter
4
Modern road
infrastructure envisioned
by 2040
PAGE
Chapter
STRENGTHENING FUNDAMENTALS
FOR HARNESSING OPPORTUNITIES
81. Uganda’s Vision of achieving this Vision all development plans at

faster socio-economic transformation is all levels shall follow this planning ap-
dependent on her capacity to strength- proach to foster faster socio-economic
en the fundamentals for harnessing the transformation.
opportunities. The chapter highlights
the key opportunities and strategies 4.1 Opportunities
to efficiently harness them. It also pre-
sents the fundamentals that need to be 83. The opportunities include; abun-
strengthened. dant labour force, minerals, oil and gas,
agriculture, tourism, knowledge and
82. Over the Vision period, the ICT, industrialization, water resources,
planning approach will be based on geographical location and trade.
harnessing strategic opportunities by
strengthening the relevant fundamen- 4.1.1 Tourism
tals that facilitate maxima returns from
the opportunities. This will be coupled 84. Uganda is endowed with various
with increasing the level of the country’s tourism attractions including diverse
competitiveness to enable production nature based, faith based, culture and
of globally competitive goods and ser- heritage, eco-tourism and MICE attrac-
vices. In addition, efforts will be geared tions. The main potential lies in nature
towards improving social development based tourism where there is variety of
indicators while strengthening govern- flora and fauna and beautiful sceneries.
ance systems and structures. To attain It is estimated that the country has 50
PAGE
per cent of the world’s mountain goril- 85. The main tourism products in-
las, 7 per cent of the world’s mammal clude; gorilla tracking, bird watching,
species including the unique tree climb- eco-tourism, faith based tourism, water
ing lions and white rhinos, 11 per cent sport, mountain climbing, chimpanzee
of the world’s bird’s species (1061 bird watching, nature guided walks, com-
species), and variety of butterflies. Oth- munity walks, butterfly viewing, view-
er unique attractions include chimpan- ing golden patas monkeys, cultural and
zees and golden monkeys. The country heritage sites viewing, MICE, visual arts
has beautiful mountain ranges including and white water rafting. This presents
the snow-capped Rwenzori Mountain the country with numerous tourism
ranges, 2nd largest fresh water lake, opportunities to stimulate economic
third deepest lake and a source of the growth and earning significant revenues
world’s longest river with beautiful wa- from strengthening primary, secondary
terfalls and unique water scenery in the and tertiary tourism industries.
world.
A Mountain Gorilla in Bwindi Impenetrable

Forest National Park, one of the unique
tourist attractions. Uganda has 50 per
cent of the world’s mountain Gorillas and
7 per cent of mammal species
PAGE
86. By 2011 tourism contributed and 8 million tourist arrivals respective-
14.6 per cent of total employment ly.
(630,830 jobs) and the sector con-
tributing 23 percent of the total regis- 88. The tourism industry is expected
tered businesses (hotels restaurants, to play a major role in the economy and
recreational and personal services) in a major contributor to GDP by 2040. It
the country. Tourism continues to be will provide enormous employment op-
a major foreign exchange earner for portunities directly and in related ser-
the country contributing USD 662 mil- vice industries and earn USD 12bn by
lion in 2011 representing 11.4 percent 2040. In addition to the direct benefits
of the total foreign exchange earnings. the industry will spur the growth of the
This performance is attributed to stra- associated secondary and tertiary in-
tegic advertising in the source market, dustries.
increased variety in the products, tap-
ping of the domestic market (nationals) 89. Although the sector is recog-
and attracting regional and international nized to be one of the fastest growing
conferences and meetings. service sectors of the economy and a
major foreign exchange earner for the
87. Uganda has shown an impres- country, Government has not strategi-
sive performance in the tourism sector cally invested and mainstreamed tour-
with the total number of annual tourist ism in all Government activities to boost
arrivals of 945,899 in 2011 representing the sector. This is in contrast to many
17 percent increase from the previous countries in the region and beyond that
year. Tourists visiting wildlife protected have significantly invested in this sec-
areas increased by 20 percent from the tor thus benefited from the high rates of
previous year. However this is still on return associated with tourism industry.
the low side compared to the long haul
destinations such as China, Mexico
and Malaysia accounting for 47, 22 and 90. The tourism support infrastruc-
16 million annual visitors respectively. ture and services will be improved to ef-
Compared to other African countries, fectively facilitate the tourism industry.
Egypt and South Africa are the leading This will include transport networks and
tourist destinations accounting for 14 connectivity by improving and expand-
PAGE
Figure 4. 1: Infrastructure needs for Tourism Development
PAGE
ing Entebbe International Airport, up- 92. In addition, emphasis will be put
grading five tourism aerodromes, and on the development of a globally com-
improving domestic air transport. In petitive tourism human resource. The
addition, the multilane standard paved relevant training institutions such as
roads and modern water transport sys- the Hotel Tourism Training Institute and
tem forming a tourism circuit will be de- Uganda Wildlife Training Institute will be
veloped (figure 4.3). The electricity grid upgraded into centres of excellence.
and ICT infrastructure will be extended New training facilities will also be estab-
to all major tourism attractions. Fur- lished and certified.
thermore, other supporting tourism in-
frastructure like hotel industry, electric 93. Over the years efforts will be
cables on mountains, tourist trails and geared towards maximizing the exist-
rescue facilities, will be put in place. ing tourism potential by exploiting the
variety within the wildlife products and
91. The tourism sector is to become also improving the cultural, community,
the mainstay of the economy contribut- faith based and Meetings, Incentives,
ing highest in foreign exchange earn- Conferences and Events (MICE) tourist
ings, tax and non-tax revenue, employ- products.
ment and to GDP as a whole. We project
that Uganda will be one of the top five 94. With improvement in research
tourist destination in Africa and among and development efforts will be geared
the top 10 long haul tourist destination towards diversifying tourism products
in the world. Per capita expenditure to meet the needs for the tourism sec-
per tourist will also increase to match tor. This will include the development
other leading tourist destinations. To of the souvenir art and craft industry,
achieve this, the country will invest in tangible and intangible heritage, water-
strategic tourism infrastructure, human based tourism resources, cultural cen-
resources, research and development, tres, butterfly viewing, bird watching,
strategic marketing in traditional and caving, canopy walk, and wilderness
emerging sources, and improvement camping among others.
and diversification of products.
PAGE
95. To improve the image and posi- 96. Government will secure and
tion the country as a leading tourist des- protect all tourist attractions and desti-
tination, Uganda will research on emerg- nations to ensure their integrity as well
ing trends and markets, and advertise as eliminate the problem of wildlife dis-
aggressively in domestic, regional and persal. The sector will develop and con-
international markets. To improve the tinuously improve the policy, legal and
coordination, marketing and develop- regulatory framework.
ment of tourism, a corporate Uganda
Tourism Authority will be established to 97. Over the Vision period, efforts
replace the Uganda Tourism Board with will be made to develop domestic tour-
ability to generate its own revenue and ism as a way of ensuring sustainable
reduce pressure on national budget. utilisation of tourism infrastructure and
A tree climbing lion in Isha-

sha, Queen Elizabeth National
Park, a unique tourist attrac-
tion in Uganda
PAGE
services. Local governments and com- limited extension services, over de-
munities will be sensitised on the ben- pendency on rain fed agriculture, limit-
efits of tourism. ed markets, land tenure challenges and
limited application of technology and
4.1.2 Agriculture innovation.
98. Agriculture is the main stay of 101. The opportunity for value addi-
the Ugandan economy employing 65.6 tion through agro processing is enor-
per cent (UBOS 2010) of the labour mous. This will enhance Uganda’s
force and contributing 21 percent to the competitiveness on the world market,
GDP. In addition, by 2007 the sector ac- boost foreign exchange earnings and
counted for 47 percent of total export employment. It can also reduce wast-
earnings. Its contribution to the GDP age, enhance food security, improve
has been declining but remains very im- livelihoods for low-income groups and
portant to provide a basis for growth in empower disadvantaged groups of so-
other sectors. ciety like rural women, youth and the
disabled.
99. Agricultural production in Ugan-
da is mainly dominated by smallholder 102. Uganda aspires to transform
farmers engaged in food and industrial the agriculture sector from subsistence
crops, forestry, horticulture, fishing and farming to commercial agriculture. This
livestock farming. The country is one will make agriculture profitable, com-
of the leading producers of coffee and petitive and sustainable to provide food
bananas in the World. It is also a ma- and income security to all the people of
jor producer of tea, cotton, tobacco, Uganda. It will also create employment
cereals, livestock and fishing products opportunities along the entire commod-
among many others. ity value chain of production, process-
ing and marketing. Specific emphasis
100. However, agriculture productiv- will be put on promotion of aqua culture
ity of most crops has been reducing and livestock farming.
over the last decade mainly due to a
number of factors including: high costs 103. As a way of increasing agricul-
of inputs, poor production techniques, tural productivity, Government will do
PAGE
Uganda aspires to transform
the Agriculture sector from
subsistance to commercial
agriculture through mecha-
nisation and introduction of
modern irrigation systems
PAGE
the following: invest in the development ards and quality assurance; attract pri-
of all major irrigation schemes in the vate sector participation in value addi-
country; ensure continued investment tion activities and investments; improve
in technology improvement through re- access to credit through the develop-
search for improved seeds, breeds and ment of rural financing schemes and
stocking materials; invest in the devel- markets; expand the network of mar-
opment of the phosphates industry in ket infrastructure including appropri-
Tororo to reduce the cost of fertilizer. ate structures to reduce post-harvest
losses; strengthen cooperatives in or-
104. Furthermore, Government will der to build capacity of farmers in man-
also: reform the extension system in the agement, entrepreneurship and group
country to increase information access, dynamics. This will enable the farmers
knowledge and technologies to the to engage in value chain activities es-
farmers; ensure that land fragmentation pecially collective marketing.
is reversed to secure land for mecha-
nization; collect adequate agricultural 107. Agriculture specific industrial
statistics; improve weather information clusters will be supported in various re-
and its dissemination and intensify en- gions to add value to agricultural prod-
vironmental control measures to halt the ucts.
decline in soil fertility.
4.1.3 Oil and Gas
105. Government will strengthen and
harmonise the legal, regulatory and in- 108. Uganda has commercially via-
stitutional framework and ensure the ble oil and gas deposits in the Albertine
sector client charter is developed, pop- Graben. In terms of potential capacity,
ularised and enforced. Appropriate hu- the reserves are estimated at 3.5 billion
man resource in agriculture will also be barrels of oil equivalent. More commer-
developed, retooled and motivated. cially viable oil and gas deposits are ex-
pected to be discovered as continuous
106. In order to enhance market ac- explorations are being carried out in the
cess and value addition, Government Albertine Graben and other potential ar-
will: improve capacity for regulation and eas.
enforcement especially in safety stand-
PAGE
109. This presents the country with 112. Government will construct pipe-
opportunity to spur economic growth, line infrastructure to deliver the refined
create employment, foster technology products to the domestic, regional and
transfer and generate revenues for in- international markets. Other essential
vestments in development of other infrastructure will be constructed to en-
strategic sectors such as infrastructure able effective harnessing of the oppor-
and human resource development. tunity and this will include roads lead-
ing to the refinery and production areas,
110. Government will ensure value linking to Tororo - Pakwach railways,
addition to these resources by con- airport near the refinery area, and ap-
struction of a refinery which will enable propriate water supply infrastructure.
the country to achieve maximum mul-
tiplier effect through stimulation and 113. Government will establish and
strengthening the associated second- appropriately manage petroleum re-
ary and tertiary industries. In addition, serves in strategic towns for energy se-
employment will be created in the sec- curity and price stability.
ondary and tertiary industries.
114. To encourage the use of Lique-
111. To effectively harness the op- fied Petroleum Gas (LPG), Government
portunity and further develop the in- will in collaboration with neighbouring
dustry, relevant fundamentals will be countries construct a gas pipeline to
strengthened and efforts devoted on and from the gas fields within the region
developing the oil and gas sector. The to supplement Uganda’s energy needs
fundamentals will include; specific in- while conserving the environment.
frastructural development, appropriate
115. In addition, Government will
technology, peace and security, and
support the citizenry to take up the op-
human resources and the governance
portunities through enterprise develop-
of the sector. Over the Vision period,
ment, strengthening the private sector
Government will strengthen the policy,
associated with the oil and gas indus-
legal, institutional and regulatory frame-
try, capacity building and establishment
work to foster transparency, protect en-
of local area development fund. These
vironment and good governance in the
will be in the entire value chain most
oil and gas sector.
especially in the secondary and tertiary
PAGE
Government will ensure value addition to the oil and gas
by construction of a refinery which will enable the country
achieve maximum multiplier effect through stimulation
and strengthening the associated secondary and tertiary
industries
PAGE
industries. The secondary industries nificant commercial viable reserves. For
include; plastics, agro chemicals, ferti- example Iron ore deposits in Kabale and
liser lubricants, paint, bitumen, thermal Kisoro areas are estimated to be over 50
power generation among others. On million tonnes. Other minerals include;
the other hand the key tertiary indus- Beryl, Bismuth, Columbite Tantalite,
tries that are likely to develop among Copper, Chromite, Diamond, Gold, Tin
others include; machinery, transport, (cassiterite), Wolfram(Tungsten), Asbes-
hotel, construction, real estate and tos, Clay, Diatomite, Feldspar, Granite
communication. Gneisis, Graphite, Gypsum, Kaolin, Ky-
anite, Limestone, Marble, Mica, Phos-
116. Government will transform the phates, Rock Salt, Silca Sand, Talc, Co-
human resource and build a critical balt, Lead, Zinc, Platinum Group Metals
mass of scientists, engineers and tech- (PGM), Uranium, Vermiculite and Nickle
nicians in the oil and gas sector, and among others, See map in figure 4.1.
ensure that they are equipped through Government will continuously carry out
application of the latest science and geological explorations in the various
technology. A specialized oil and gas parts of the country to assess the viabil-
research development centre will be ity of the various mineral potentials.
established. In addition, special pro-
grams to train in highly specialized oil 118. Uganda has the opportunity to
and gas areas of geoscience and en- build a strong mining industry that will
gineering in other international institu- be a source of revenue, employment,
tions will be pursued. and economic lifeline industries. Steel
which is processed from iron ore is a
4.1.4 Minerals significant input to the manufacturing,
construction and infrastructure develop-
117. Uganda has favourable geo- ment. Uranium on the other hand will be
logical environments that host a wide used to facilitate generation of electric-
range and a variety of minerals which ity from nuclear energy; whereas Phos-
provide an opportunity to develop a phates are used for producing fertilizers
strong mining industry. The airborne to support agriculture production. On
geophysical survey, geological map- the other hand, rare earth minerals are
ping and geochemical sampling esti- a strong input to the manufacturing of IT
mates over 27 types of minerals in sig- and electronic products.
PAGE
119. It is projected that the industry lish an industrial base for local produc-
will be a major driver in employment tion of consumer and industrial goods.
creation and GDP growth over the Vi- Government will establish processing
sion period. In addition the lifeline in- industries for Phosphates in Tororo,
dustries will spur growth in the manu- Limestone in Karamoja and Iron ore in
facturing, infrastructure development, Kabale.
agriculture and ICT industries.
123. Government will provide spe-
120. To effectively exploit these op- cific infrastructure including roads, rail-
portunities and build a strong mining way, electricity and water to facilitate
industry, specific fundamentals will be exploitation of these minerals. To en-
strengthened including infrastructure able bulk transportation of heavy min-
development, human resources science erals and/or their products, the railway
and technology and good governance will be extended to areas where enor-
including labour standards. mous deposits have been found. The
electricity grid will be connected to
121. Government will facilitate and support the mining and processing of
nurture human resource and skills de- these minerals.
velopment to support the geo-science
industry. Emphasis will be put on re- 4.1.5 Abundant Labour Force
search and development, acquisition of
modern scientific knowledge and tech- 124. It is estimated that currently
nology, and building of knowledge net- over 56 per cent of Uganda’s popula-
works. This is aimed at building a criti- tion is below 18years of age implying
cal mass of geo- scientists, engineers, that the country has and will continue
geo-economists, technicians and ar- to have a very young population over
tisans with globally competitive skills. the Vision period. The youthful popula-
This will be done through partnership tion means that the country is blessed
with local and International institutions. with the potential for an abundant and
cheap labour force that can drive the
122. To promote local beneficiation, envisaged growth and transformation.
the country will ensure value addition Under the current demographic profile,
on the minerals and provide manufac- however, this potential is neutralized
turing feedstock. This will help estab- by a high dependency burden arising
PAGE
Figure 4.2: Proposed Infrastructure for Mineral Development
PAGE
out of a high fertility rate. Compared to is expected to rise and Uganda will
many developed and fast developing have more savers and tax payers than
countries, Uganda’s demographic tran- dependants. The Government will thus
sition, that is progress towards lower have more money to spend on infra-
fertility and mortality, is delayed. structure and other development pro-
jects because considerably less will
125. A positive aspect of the delayed be required to be spent on health and
demographic transition is that the cur- education. The labour force therefore
rent Country Population Programme stands out as a big opportunity that will
interventions are likely to result into have to be harnessed during the Vision
drastic reductions in fertility. The fertil- period.
ity reduction will mean progressively
smaller child cohorts being added to 128. In addition, the dividend pre-
the population compared to the much sents an opportunity for the emergence
larger cohorts entering the labour force. of a strong middle class which will play
The change will bring about a shift in the a critical role as major consumers, in-
age structure, during the Vision period, crease production efficiency and re-
with a preponderance of productive age balancing the economy. The current
groups which will greatly reduce the de- population of about 32 million people
pendency ratio. presents another opportunity to the
country in terms of market of locally
126. This development is known as produced goods and services.
a demographic dividend, defined as “a
rise in the rate of economic growth due 129. The young population presents
to a rising share of working age people opportunity for leapfrogging in technol-
in a population”. It has been argued ogy, innovation, speed, and dexterity.
that the demographic dividend played This will help to enhance and improve
a major role in the “economic miracles” productivity. In addition to this, the
of the East Asian Tigers and in the eco- young population provides a potentially
nomic boom in Ireland in the 1990s (the big domestic and local market which if
Celtic tiger). well nurtured can act as an incentive
for industrialization and urbanisation.
127. During this demographic win- Similarly, this will help to spur econom-
dow of opportunity, output per capita
PAGE
ic growth, create employment, foster 4.1.6 Industrialisation
technology transfer and generate rev-
enues for investments in development 131. Review of development paths
of other strategic sectors. Furthermore, of developed and emerging economies
the young population provides an op- show that except for a few oil-exporting
portunity for the development of sports countries, there is a strong positive cor-
as a business. relation between industrialisation and
rapid development. Experience from the
130. To effectively harness this op- recent global financial crisis has shown
portunity, these young generations will the need to have a strong industrial
be equipped with globally competitive base to cushion the economy from ex-
skills, relevant knowledge and positive ternal shocks. A strong and competitive
attitudes. Government will build centres industrial base is therefore, important to
of excellence in health, education, and create employment, advance technol-
social infrastructure including training ogy and a resilient economy.
institutions and schools with all facili-
ties and amenities such as science and 132. Analysis of the experiences from
ICT laboratories and workshops among East Asian countries, such as Korea and
others. Malaysia provide good lessons of a pos-
A Vehicle manufacturing
plant; the country has an
opportunity to leapfrog in
technology to advance
industrialisation
PAGE
sible industrialisation path that Uganda chemical and pharmaceutical products
can take to build a stronger competi- industry. Most of these industries use
tive industrial base. As in many of these out-dated technology leading to pro-
countries, Uganda has to directly estab- duction of low quality products that are
lish and sustain key strategic/ lifeline in- not globally competitive.
dustries as well as nurture and develop
a strong STEI sector to further industri- 135. To build a stronger and more
alisation. competitive industrial base over the Vi-
sion period, the approach will include;
133. There are many opportunities i) developing industries that utilise the
for Uganda to develop her industrial local potential, ii) attracting industries
base. There is an opportunity to attract that can be relocated from fast emerg-
labour-intensive manufacturing indus- ing economies, iii) offshoring indus-
tries which are being relocated from tries, iv) establishing economic lifeline
fast emerging economies as a result industries, and v) investing in strategic
of rapid wage increases. For example, industries. The geese approach to in-
China will free up 85 million labour-industrialisation will be followed where
tensive manufacturing jobs, compared appropriate.
to 9.7 million jobs released by Japan in
the 1960’s and 2.3 million by Korea in 136. In the first ten years of imple-
the 1980s (Lin 2011c). In addition, the menting this Vision, emphasis will be
emergence of large market economies put in the establishment of economic
such as Brazil, Russia, India, China and lifeline industries including; agro-based
South Africa (BRICS) are providing a big industries, iron and steel industry, oil
source of markets. Furthermore, there is and gas industry and building a strong
also opportunity to leap frog in technol- STEI foundation that will be a spring-
ogy to advance industrialisation. board for advanced industrialisation.
Government will also establish a Hi-
134. Currently, the industrial base in Tech city as a hub for digital industries.
Uganda is largely dominated of metal- For the subsequent years, emphasis
lurgical, food processing, leather and will be on developing and upgrading
leather products, textile, clothing and electronic and micro-electronic indus-
garments, building and construction, tries, machine tools, higher technology
paper printing and packaging, and industries (transport and automobile),
PAGE
aerospace industry, nano and bio-tech- trial and economic development. These
nology industries. In addition, continu- will create a sustainable environment for
ous development and upgrading of the foreign and domestic direct investment
Research and Development (R&D) base and build targeted industries aimed at
will be a cornerstone in building a strong developing strategic industrial capabili-
and competitive industrial sector, see ties and industrial regions. In designating
table 7.1. these SEZs, factors such as proximity to
raw materials and key infrastructure like
137. To effectively exploit the oppor- energy, transport; geo-positioning, geo-
tunities presented by industrialization, seismic, tourism and other potentials,
specific fundamentals will be strength- will be considered.
ened including infrastructure develop-
ment, human resource development, 139. To provide a conducive legal en-
science and technology and good gov- vironment for the industrial sector de-
ernance. Specific efforts will be geared velopment, Government will put in place
towards attracting leading multi-nation- and support outward oriented policies
al corporations in key industries that will to attract FDI. In addition, an appropri-
stimulate faster technology transfer. ate policy framework will be instituted to
facilitate private sector development.
138. To ensure coordinated develop-
ment of the industrial sector, Govern- 140. Emphasis will also be put on
ment will gazette and support the devel- supporting the development of micro,
opment of sector-specific cluster-based small and medium sized manufactur-
industrial zones in various parts of the ing industries that range from agri-
country to tap the abundance of natural cultural based MSMEs, handcrafts to
resources. In addition, viable industrial automated hi-tech industries that are
clusters will be developed in line with well distributed throughout the coun-
the country’s competitive advantage try. In this regard, a national institution
to minimise costs of production and for coordinating, development and im-
lower transaction costs to compete in plementation of MSME development
the global market. Further still, Special programmes and initiatives will be es-
Economic Zones (SEZs) will be set up tablished. This will be guided by appro-
as important tools for long-term indus- priate policy and legal frameworks.
PAGE
141. The Government in partnership competitive. There is potential to im-
with private sector and use of the coun- prove availability of digital content and
try’s network of overseas embassies will e-products, automation of Government
promote and rebrand the country as a processes and inter-agency connec-
top destination for offshore industries. tivity, innovation, bridging the gap be-
To improve the management, supervi- tween industry and the academia, and
sion and support to the industrial sec- commercialization of research and de-
tor, a reliable industrial databank with all velopment.
the country’s industrial establishments
mapped out on the global positioning 144. Currently, limited manufactur-
system, will be developed. ing of ICT products is taking place in
Uganda and as such, there are no ex-
4.1.7 Knowledge and ICT sector ports in this area. This makes Uganda
a net importer of ICT products. This is
142. ICT and ICT Enabled Services in contrast to emerging economies that
(ITES) industry has enormous oppor- have relied on ICT to change export ori-
tunities that Uganda can exploit to entations with substantial increases in
transform the economy and peoples’ the proportion of ICT goods to total ex-
lives through job creation, accelerated ports estimated at 56 percent in Philip-
economic growth and significantly in- pines, 45 percent in Singapore, and 45
creased productivity. According to the percent in Malaysia.
World Bank’s NESAP-ICT project, the
current global potential of ICT/ITES out- 145. This industry is expected to
sourcing is estimated at USD500 billion greatly contribute to the national GDP
annually, of which less than USD100 bil- and creating employment opportuni-
lion has so far been tapped. This poten- ties. The multiplier effect of associ-
tial is estimated to rise to USD1.6 trillion ated secondary and tertiary industries
by 2020. will have tremendous impact on the
economy. There is low level of business
143. ICT provides an opportunity to automation and use of ICT in industrial
improve national productivity by making development (CAM/CAD) and low local
Government and business enterprises digital content.
more efficient, effective and globally
PAGE
The country shall continuously
build robust ultra-high speed,
pervasive, intelligent and trust-
ed high speed ICT infrastruc-
ture all over the country in line
with the changing technolo-
gies
146. Uganda shall develop, improve workers, and ensure their effective utili-
and retool its ICT talent building mech- sation.
anism by adopting globally-bench-
marked, industry-rated skills assess- 147. Uganda shall continuously build
ment, and training and certification robust ultra-high speed, pervasive, in-
standards. The curricula and learning telligent and trusted high speed ICT in-
content will also be progressively re- frastructure all over the country in line
viewed and developed in order to align with the changing technologies. For
what students are taught and what evacuation of international bandwidth,
industry globally requires. These ef- several alternate routes and networks
forts will be coupled with international shall be developed and connected to
industry collaboration in testing and the submarine fibre optic cable net-
certification standards. ICT shall be works around Africa. To enhance reli-
mainstreamed in education to take ad- ability Uganda will construct its own
vantage of ICT-enabled learning and to sub-marine sea cables over the Vision
prepare future generations of ICT-savy period. In addition, satellite access will
be improved in key strategic areas.
PAGE
148. The Government shall foster 150. To ensure effective interoper-
and support the BPO business activi- ability of processes and/or systems
ties by implementing necessary poli- across Government, the private sector,
cies and developing the supporting civil society, other Governments, and
regulatory framework. This will ensure development partners, Uganda shall
Uganda deepening and sustaining the develop and enforce open standards
momentum of the BPO business infor software development that will be
terventions made so far. With a good regularly updated to meet the varying
pool of ICT talent profile, favourable environments.
policies and regulatory framework and
high speed robust Internet backbones 151. The Government will develop
Uganda shall claim a good slice of the platforms on which the private sector
global ICT-ITES outsourcing business can co-create with the Government,
by 2040. offering new value-added services to
the public. Government shall develop
149. Government will encourage in- collaborative platforms that foster the
novation to harness the full potential creation of new ideas by tapping on the
of the digital economy and technology creativity and dynamism of innovative
innovation. Government, in partnership individuals and companies.
with the ICT industry actors and the
academia, will use technology demon- 152. Ultimately, Uganda shall cata-
strator hubs to build innovative servic- lyse a “whole-of-Government” transfor-
es and processes. Uganda shall utilize mation by putting as many as feasible
the power of ICT to stimulate growth public services online as possible, auto-
innovation and employment creation mating work functions and reducing pa-
through: Digital Content Creation; soft- perwork for greater internal operational
ware development for the local and re- efficiencies (building capacity, enabling
gional markets; creative industries and better services, creating knowledge,
the multimedia; and Computer Aided collaborating effectively, investing op-
Design and Manufacturing (CAD/ CAM) timally, encouraging innovation). The
technology; and emerging technolo- expected result of this is better delivery
gies. of services, open engagement of Gov-
PAGE
ernment, and significant improvement 155. The hi-tech city shall have a
in Government operations. concentration of companies involved in
Information and Communications Tech-
153. Over the Vision period govern- nology (ICT) based industries, including;
ment will promote the development of a software development, internet servic-
hi-tech industry. In this regard, land will es, hardware assembly and manufac-
be designated and appropriate infra- turing, creative and media industries.
structure developed for the establish- The presence of the world’s leading in-
ment of a hi-tech city. Government will dustries shall spur technical innovation
support private sector investment in hi- and expose the trending global hi-tech
tech industries. Regional cities will have industry scientific research.
well developed ICT and BPO parks and
software incubation centres. 156. With that setting, the hi-tech
city shall be formed as a milieu of in-
154. One approach will be to attract novations by the convergence on one
the world’s leading technology corpo- site of new technological knowledge; a
rations while providing fertile ground for large pool of skilled hi-tech profession-
thousands of Ugandan bred small inno- als, engineers and scientists from major
vative start-ups to grow into multi-bil- Ugandan/global universities; funding
lion shilling global businesses. The Hi- from the Government and leading tech-
Tech city shall be a hub for high-growth, nology firms; the availability of afford-
highly innovative companies of the fu- able capital for start-ups; and, in the
ture capable of creating thousands of early stages, the institutional leadership
technology jobs and greatly expand the of Government of Uganda.
country’s tax base. The hi-tech city shall
be modelled on the Silicon Valley in the 157. In collaboration with banking in-
United States and/or East London Tech stitutions the Government shall create
City. Uganda Government shall develop a facility to provide specialist banking/
a blueprint for technology designed to financing services to technology com-
make Uganda the most attractive place panies based in the hub. A superfast
in the region to start and invest in inno- broadband shall be rolled-out in the hub
vative technology companies. area. World leading companies such as
Cisco Systems, Google, Dell, HP, Ap-
PAGE
ple, Microsoft, Intel and Facebook shall Tanzania and Rwanda in the South,
be facilitated to establish innovation Democratic Republic of Congo to the
hubs’ creative spaces for researchers, West and South Sudan in the North.
talented developers and entrepreneurs This puts her at the heart of Africa which
to work with Uganda developers and provides it with great opportunities and
academics. Emphasis shall be placed leverage to participate as a strategic
on technical excellence in develop- partner in the regional and international
ing next-generation applications and economic and political engagements.
services and creation of an accelera-
tor space for spinout companies, es- 160. The country’s location provides
tablish research labs focusing on new it an opportunity to be a member of a
areas such as performance computing number of regional trade blocs such
and new emerging technologies. World as East African Community, COMESA,
leading universities in hi-tech shall be SADC and African Union providing it
facilitated to establish a bridge between with a wider market and associated
academia and industry in the Hi-tech membership benefits. Similarly, Ugan-
centre. Government shall create spe- da’s location makes it a regional hub for
cial-purpose visas for foreign entrepre- industrial production, trade and transit,
neurs who start businesses in the hubs. and air transport. The hub creates a po-
tential to facilitate connectivity and ac-
158. Government will review all le- cess to the world’s super highway and
gal and regulatory framework in the ICT air transport network that connects all
sector to allow for effecient operational- major cities in the world and sea routes
isation, enforcement and improvement from Asia, Arab world, Africa, Europe
of cyber laws, and enhance information and North America.
security.
161. To ably exploit these opportuni-
4.1.8 Geographical Location and ties, Government will invest heavily in
Trade Opportunities integrated state of the art infrastruc-
ture development and maintenance in
159. Uganda is located along the the areas of energy generation, road
equator and within zone 36 degrees and railway infrastructure connect-
north. It boarders Kenya to the East, ing to all major border points. This will
PAGE
Figure 4.3: Proposed Economic Zones and Trade Areas
PAGE
be achieved in partnership with her a member of a strong African Defence
neighbours Southern Sudan, Kenya, Mechanism.
DRC, Rwanda and Tanzania. To further
strengthen cross border trade key stra- 4.1.9 Water Resources
tegic trade zones will be established.
165. Uganda has abundant fresh wa-
162. Government will develop air ter resources that provide numerous
transport infrastructure across the opportunities which can foster faster
country with a view to opening up many socio-economic transformation. The
entry and exit ports. It will invest in the fresh water resources cover over a third
expansion of Entebbe International Air- of Uganda’s surface area with large ac-
port and the development of at least tive storage capacity in lakes Victoria,
four other new international airports Albert, Kyoga, George, and Edward.
namely; Arua, Nakasongola, Kasese Uganda has a vast network of rivers
and Soroti. that connect to these various lakes.
Lake Victoria is the source of River Nile
163. The country will pursue strategic which is the longest river in Africa and
membership to regional blocs to ex- its flow exceeds 25 cubic kilometers per
ploit the opportunities that they present year. The Nile is an important resource
through strengthening legal and regula- for the 12 beneficiary Nile Basin coun-
tory frameworks and institutions, and tries. Uganda also has ground water
domestication and operationalization of renewable resources estimated at 29
the protocols. km3 per year. The total renewable water
resources amount to 43.3billion cubic
164. To realize the 30-year Vision metres per year of which only 13.6 bil-
of a modern and prosperous country, lion cubic metres per year is the internal
Uganda aspires to become a major renewable water resources.
player in the East Africa Community
block, COMESA and the global markets 166. Uganda receives significant
in general. It is expected that by 2040 amount of rainfall with the highest of
the East African Monetary Union and 2500 mm (Lake Victoria basin), mean of
Political Federation will be a reality. In about 1200 mm and lowest of about 500
addition, Uganda will embrace being (North East Uganda) mm per annum.
PAGE
The country also has extensive wetland an up-stream and downstream country
areas covering about 11 per cent of the with reference to River Nile provides it
total land surface which has a marked with geo-political and economic lever-
effect on Uganda’s hydrology. age.
167. This potential provides the 168. The current consumptive utili-
country with opportunity to stimulate zation rate of internal renewable water
social economic transformation through resources (IRWR) stands at 2.8 percent.
development and utilisation of water re- This consumptive rate is relatively low
sources. These opportunities include; and is attributed to limited engagement
irrigation, livestock rearing, fisheries in water consumptive economic activi-
and aqua-culture, hydro power genera- ties. The irrigation potential exploited
tion, domestic water consumption, in- is about 3.6 percent (14,418 out of
dustrial development, water transport 400,000 hectares). Similarly, national
and tourism. Uganda’s positioning as urban water coverage is estimated at
The proposed bridge across

River Nile in Jinja
PAGE
66 percent in 2008 and rural coverage extension of piped water supply system
ranges. It is also estimated that only 15 will take into consideration the urbani-
percent of hydro power potential is uti- sation strategy that government is pro-
lized in Uganda. moting over the Vision period.
169. The water related economic ac- 172. To generate affordable elec-
tivities are expected to generate revenue tricity, Government will develop all the
for the country over the Vision period. It hydro-power potential which is esti-
is projected that it will provide employ- mated at 4500MW along the various
ment and more jobs are expected in the rivers. This will include small, mini and
secondary and tertiary industries asso- large hydro power plants. In addition,
ciated to this. Impact is expected on the government will put in place mitigation
health of the population due to reduc- measures, especially protection of wa-
tion of hygiene and sanitation related ter catchments, to ensure that the water
diseases that are currently contributing resources are sufficient to produce the
over 70 per cent of the disease burden. power.
170. To effectively harness the oppor- 173. To promote commercial agricul-

tunities presented by water resources, ture Government will sustainably use
government will strengthen the relevant water resources for irrigation, livestock
fundamentals to facilitate sustainable watering, fisheries and aqua-culture.
utilisation. Since this is a finite but re- Bulk water transfer systems will be built
newable resource, the management of to cover long distances and large areas
the water resources will be improved to provide water for multi-purpose use.
and strengthened during this period. Analysis shows that with even full ex-
ploitation of irrigation potential only 14.1
171. To improve the health, sanitation, per cent of Internal Renewable Water
hygiene, promote commercial and low Resources will be utilised. To mitigate
consumption industrial setups, Govern- local scale shortages large and medium
ment will construct and extend piped water reservoirs will be developed.
water supply and sanitation systems to
all parts of the country. Bulk water treat- 174. To improve water security and
ment and supply systems that cover mitigate adverse effects of floods and
significant areas will be promoted. The droughts, large and strategic water res-
PAGE
ervoirs will be constructed and main- The concept of virtual water and water
tained in appropriate areas around the footprint will be considered during this
country. Vision period.
175. To ensure optimal and sustain- 178. Emphasis will be on develop-

able utilisation of the water resources ment of agriculture that fully utilises the
Government will strengthen and man- abundant water resources. Government
age water resources at the lowest ap- will facilitate the construction of large
propriate levels. This will be at water and small scale irrigation schemes. In
management zones and water catch- addition, livestock watering activities
ment zones. will be constructed to facilitate livestock
farming. In addition to facilitating fish-
176. Government will support the eries, emphasis will be on aqua culture
development of water for industrial pur- taking into consideration of social eco-
poses by putting in place the necessary nomic and environmental benefits.
infrastructure to support the re-use of
water. The nuclear and oil refining in- 179. The irrigation potential is esti-
dustries require considerable amount of mated at 410,000 hectares (FAO 1989)
water for cooling of which strict adher- and the hydro power potential is 4500
ence to water cooling standards must mega watts. The geographical position
be done. also places Uganda as an upstream and
downstream country in addition to be-
177. Water use efficiency, water recy- ing the source of the Nile. The Nile wa-
cling and water re-use will be key strat- ter being a very important resource for
egies to optimally use this resource. the 12 beneficiary Nile basin countries
Strategies will be put in place to ensure provides Uganda geo-political lever-
efficient use of water especially in wa- age to maximize political and economic
ter consumptive economic activities. benefits. Only 2.8 per cent of the inter-
The appropriate technology to support nal water resources are utilised.
this will be developed. The design of all
future water supply systems must take
into consideration all these three im-
portant aspects of water sustainability.
PAGE
Matuga power sub-sta-
tion; energy is one of the
key fundamentals that is
required to harness the
country’s opportunities
PAGE
4.2 Fundamentals for America, Japan and Western Europe to
Development foster economic growth as well as posi-
tive attitudes and cultural strengths to
180. The fundamentals that must be facilitate their own social transforma-
strengthened to harness the opportu- tion. They also adopted and adapted
nities include; Human resource, Trans- systems and structures that supported
port infrastructure and services, Energy, continuous learning and development
Science, Technology, Engineering and while keeping pace with trending global
Innovation, Urban Development, Land technological and scientific develop-
and Peace, Security and Defence. ment.
4.2.1 Human Resource 183. Uganda will adopt a similar ap-

proach for it to take off and reach an
181. Uganda’s human resource de- upper middle income country level by
velopment strategy is anchored on the 2040. This will help to address the criti-
premise of maximizing the benefits of cal skills gap, technology deficiency,
the demographic dividend. The country lack of creativity and innovativeness,
will continue to provide strategic leader- low productivity and negative attitudes
ship in preparation for the arrival of the towards work, to spur faster develop-
dividend in terms of proper policies and ment.
skilling and tooling of potential workers.
In line with this, a national resource plan- 184. In order to harness the expect-
ning programme will be developed and ed potential of abundant labour force,
regularly operationalized to take stock Uganda will build a modern world class
of the skills needs within the economy. education system that provides stu-
dents with first rate education, com-
182. Countries like the Asian Tigers pared to that offered by developed and
that have had phenomenal growth over emerging economies. Government will
the last decades have strategically used attract top rated universities in special-
their human resource to transform. They ized fields from advanced countries
acquired and applied the latest skills, such as United States of America and
technology, and training as was used in United Kingdom to set up their campus-
es in Uganda in those fields especially
PAGE
engineering, human medicine, geo sci- tory framework to support the devel-
ences, management, space explora- opment of skilled human resources at
tion, Nano and bio technology, ICT. Stu- all levels. Policies and programmes
dents will attend modules from each of such as BTVET and other skills devel-
the university to allow cross fertilization. opment programmes will be enhanced
In addition, exchange programmes will to equip this young population with life
be emphasized for students from the and hands-on skills which are not only
mother universities. Government will globally competitive but are also local
set up virtual replicas of these foreign in nature and customized.
universities in various parts of the coun-
try. 188. Partnerships with renowned
training institutions in leading countries
185. In addition, Government will in- like Japan, Israel and Germany in the
stitute and support a national training area of BTVET will be established to
programme for promising Ugandan stu- enable the country acquire the relevant
dents to train in leading Universities and state-of-the-art skills for faster devel-
other training institutions abroad. Prior- opment and transformation.
ity will be given to strategic and emerg-
ing fields which will leverage leapfrog- 189. Government will promote and
ging in industries. support the development of sports and
creative arts through public-private
186. To promote international and rel- partnerships. This will be done through
evant research, top private companies strengthening the institutional and reg-
such as Shell, Exxon-Mobil, Siemens, ulatory frameworks, construction of
Microsoft, and Intel will be invited and sports facilities across the country, de-
facilitated to set up research and devel- velopment of sports academies for ef-
opment centres within those university fective tracking and nurturing of talents.
premises. These companies will carry
out research in these university prem- 190. Government will also support
ises using students and other research- externalization of surplus labour by put-
ers. ting in place relevant legal and institu-
tional frameworks and sign cooperation
187. Government will also review the agreements with other countries where
policy, legal, institutional and regula- our people would work.
PAGE
4.2.2 Transport Infrastructure and 192. Uganda must urgently attain an
Services intergrated transport infrastructure net-
work to spur its own economic growth.
191. Countries that have attained This will entail development of a highly
rapid socio-economic development interconnected transport network and
have adopted and adapted transport services optimizing the use of rail, road,
modes and technologies, and accumu- water and air transport modes.
lated sufficient quality stock of transport
infrastructure. This has enabled them to 193. By 2040, Uganda will have a
lower the cost of doing business and multi-lane standard gauge railway sys-
improve the investment climate. China tem with high speed trains using the
and India have built massive railway in- latest technology for both passen-
frastructure which has resulted into re- ger transport and cargo freights. This
duced production cost thus improving will form the backbone of East Africa
their competitiveness. Similarly, other Regional railway system. The stand-
countries in the western world such as ard gauge network will link Uganda to
the US and UK accumulated a critical at least four routes to the sea through
mass of transport infrastructure net- Mombasa, Dar-es-salaam, Djibouti and
work that spurred their growth. Tanga Ports connecting to the world su-
The proposed Entebbe ex-

press highway; country will de-
velop the road infrastructure to
improve transport connectivity,
effectiveness
PAGE and efficiency
Figure 4.4: Proposed Railway Network
PAGE
per highway. It will connect Mombasa to urban areas. Multi-lane express ways
Kampala, Kasese, Kigali (Rwanda) and and superhighways connecting major
Kisangani (DRC). It will also link Tororo to cities, exit ports and economic zones
Gulu, Nimulle, Juba and Djibouti . There will be built.
will also be a link from Bukasa port on
Lake Victoria to Musoma (Tanzania) and 195. By 2040, GKMA will be one of
Kisumu (Kenya) linking to Tanzania and the most attractive cities in the world,
Kenya railway systems respectively. A offering its citizens and visitors a safe
link from Kasese to Pakwach will serve and effecient transport system based
the oil producing and tourism areas of on high quality public transport and a
West and North west Uganda. Further- complementary non-motorised trans-
more, connections will be done to other port network. The strategy will be driv-
productive areas within the country. For en by heavy rails, new light rail systems
the regional projects, joint implementa- and bus rapid transit and trams. The
tion programmes will be done with the light rail system will be developed and
sister countries. In addition, a railway extended to cover the present GKMA,
development agency will be established Wakiso, Mukono and Entebbe. Spe-
to undertake the development of rail in- cial and dedicated rail-lines connecting
frastructure. GKMA to Entebbe International Airport
will be built. In addition, light rails will be
194. The country will develop the road developed in the other four proposed
infrastructure to improve transport con- regional cities of Mbarara, Mbale, Arua
nectivity, effectiveness and efficiency and Gulu. Government will also facili-
to comparable levels of the developed tate the development of mass buses
countries. The target is to have an aver- and trams.
age of paved road density of 100 KM
per 1000 Sq. KM. The main strategies 196. Uganda will capitalize on its geo-
will include: development of highways graphical positioning to develop Enteb-
connecting Uganda to the neighbour- be International Airport as the regional
ing countries and the major productive hub. This requires transforming the air-
centers within the country; improvement port to class A standards by improving
of road infrastructure within the Greater the associated infrastructure. To con-
Kampala Metropolitan Area and other solidate this strategy Uganda will put in
PAGE
place a national carrier to increase con- the other countries to increase the eco-
nectivity to various destinations. Fur- nomic viability of the infrastructure.
thermore, Uganda will upgrade four aer-
odromes to exit ports. Government will 4.2.3 Energy
use PPPs to increase domestic flights
to various parts of the country. The Na- 199. Energy and in particular electric-
kasongola airport will be developed to ity is a driver of socio-economic trans-
a world standard class A International formation of a nation. Countries like
Airport for strategic reasons. Malaysia, Singapore, South Korea that
have attained faster growth have used
197. To reduce the cost of transpor- modern energy to drive industrialization
tation and increase connectivity, efforts and service sectors. This necessitated
will be geared towards increasing the generation and development of suffi-
volume of passenger and cargo traffic cient sources of energy to drive those
by marine transport. Government will economies. For Uganda to shift from a
establish navigable routes and put in peasantry to an industrialized and large-
place adequate marine infrastructure. ly urban society, it must be propelled by
electricity as a form of modern energy.
198. To lower the cost of infrastruc-
ture development and facilitate rapid 200. To achieve the targets of this Vi-
accumulation of the stock and quality sion, Uganda will develop and gener-
infrastructure, public private partnership ate modern energy to drive the indus-
will be encouraged. Uganda Infrastruc- try and services sectors. It is estimated
ture Fund will be established to pro- that Uganda will require 41, 738 MW by
vide another avenue for utilising private 2040 thus increasing its electricity per
capital for infrastructure development. capita consumption to 3,668 kWh. Fur-
Furthermore, the East African Develop- thermore the access to the national grid
ment and Uganda Development Bank must significantly increase to 80 per
will provide infrastructure development cent.
credit facilities that will reduce the cost
of finance for infrastructure developers. 201. The required capacity will be
For trans-boundary infrastructure gov- generated from different energy sources
ernment will promote partnership with namely: hydro power (4500MW); geo-
PAGE
thermal (1500MW); nuclear (24000MW); sion lines to evacuate power will be built
solar (5000MW); biomass (1700MW); and rural electrification programmes ac-
peat (800MW) and thermal (4300MW). celerated. Government will provide in-
The source of energy and its contribu- centives to lower the cost of electricity
tion will be determined after detailed infrastructure, facilities and equipment.
feasibility studies of energy mix. The
main enphasis will be on use of energy 205. Over the Vision period emphasis
source that will provide a competetive will be put on improving energy efficien-
tarriff compared to other countires. cy by promoting use of energy efficient
technologies. Government will support
202. Due to climate change, empha- upgrading of industrial technologies to
sis will be on other renewable forms of less energy consuming technologies.
energy including; wind, solar and bio-
gas will be harnessed and promoted. 206. Science and technological
Government will invest in R&D and pro- changes will determine the energy
vide incentives to encourage use of resources to be used to generate electric-
newable energy. ity over the Vision period. The strategy
therefore will be to continuously review
203. To reduce the energy deficit, em- the energy sources with a view of using
phasis will be put on the development the most cost effective source that will
of nuclear power preferably from the provide a competitive tariff compared to
available uranium deposits in the coun- other countries.
try. Government will invest massively in
the development of human resource in 207. To reduce energy footprint, im-
this specialized area and other neces- portation of power from neighbouring
sary infrastructure to support the early countries under the Power Trade ar-
development and use of nuclear power rangement, and development of nucle-
to generate electricity. ar power and other renewable energy
sources will be pursued to complement
204. To improve access and availabil- the existing energy sources.
ity of electricity to the rural and urban ar-
eas, especially to economic zones and 208. To achieve this investment,
other productive areas, new transmis- Government must support the human
PAGE
resource development especially in ar-
eas of nuclear energy and other energy
sources. In addition, the country will in-
vest in energy technologies and R&D.
4.2.4 Science, Technology, Engi-

A space rocket;
neering and Innovation
Uganda will re-ori-
ent itself to make
209. Developed and fast developing STEI the main
countries have used Science, Technol- driver of economic
ogy Engineering and Innovation (STEI) growth and the key
pillar of competi-
to meet their healthcare needs, devel-
tiveness
op industries and overcome econom-
ic challenges. Cuba for instance has
made biotechnology part of its health-
of products and services that can only
care system, Brazil has developed one
be generated through innovation and
of the most successful aircraft manu-
continuous technological change.
facturing industries and South Africa
has become one of the top producers
211. Available evidence shows that
of pharmaceuticals in the world. In the
S&T has higher rates of returns on in-
developed world, STEI has driven the
vestment both in the private and social
economy and provided them with the
sectors estimated at 20-30 percent and
competitive edge for the last 5 decades
50 percent rate of returns respectively.
and led to the discovery of many prod-
S&T and innovation has led to prosper-
ucts including transistors, semi-con-
ity as exemplified by Korea, Taiwan and
ductors, software and biotechnology. It
Singapore cases. This however needs
is a significant factor largely responsible
to be in the functional national STEI
for the trading imbalances between the
system especially as the world moves
less developed and developed world.
to a knowledge based economy.
210. In an open and highly competi-
212. Uganda lags behind significantly
tive global economy, the productive
and has not effectively participated in
sector can only survive by competing
any technological revolutions. The first
through quality, novelty, and a diversity
PAGE
Figure 4.5: Proposed Framework for STEI System
Technology
Transfer
Human
Resources Human
Resources
Imported Technology and Technology Import
FDI Human Resources
R&D Projects Strategic
Alliances
Personal Policy
Exchange Proposals
R&D Projects
Dev’t Projects
R&D R&D Funds

Funding/ special R & D Institutions,
projects Engineering
Academic
Institutions Centres and
Policy
STEI Policy Policy Technology/Science
Proposals Parks
Proposal
s
Technology
Human Tech.
Transfer
Resources R&D Funds Innovations
R&D Policy
Projects Tax Incentives Proposals
Training Human Human

Resource R&D
Programme Resources
Industrial Clusters Projects
Commercialisation/
Technology Manufacturing
Transfer Human
Resources
Source: Various Studies
revolution (1780-1840), the second skills needed to navigate complex regu-

(1840-1900), the third revolution (1900- latory requirements and generate the
1950) and the fourth (1950-present) data that is crucial for registering and
have already passed without Uganda protecting the products. This technol-
significantly participating. The fifth rev- ogy lag has limited the ability of the S&T
olution (2010-ongoing) is expected to sector to contribute significantly to the
have a base in developing nations such economy and provide the competitive
as China, India and Brazil, and will cul- edge.
minate in fields related to nanotechnol-
ogy and molecular manufacturing. This 213. Over the Vision period, Uganda
has been as a result of lack of funding will re-orient itself to make innovation
by donors and Governments and the the main driver of economic growth and
PAGE
the key pillar of competitiveness in trade. research centers in the country in spe-
This will necessitate drastic change of cific fields and utilize local talents. Stra-
approach to education and STEI sector tegic R&D partnership will be developed
with full support from Government so with leading companies.
that the linkage between STEI and eco-
nomic development is strengthened. 216. Government will invest heavily
in its education system with a focus to
214. Government will also establish STEI and R&D to produce globally com-
a National Science, Technology and In- petitive human resource in this field. To
novation System which will define the promote international and relevant re-
complex relationship between the net- search, top private companies like Shell,
work of institutions in the public and Total, Exxon-Mobil, Siemens, Microsoft
private sectors whose activities and and Intel will be invited and facilitated to
interactions initiate, import, modify and set up research and development cen-
diffuse new technologies. In addition a tres within the country.
special fund to support STEI will be set
up. The STEI sector will receive a mini- 217. Also partnership with influential
mum of 2 percent of GDP every year. training institutions in Japan, Israel and
The proposed national STEI will be as Germany in the area of BTVET will be
indicated in figure 4.6. established to facilitate acquisition of
relevant and competitive skills for faster
215. To enhance the academia- in- development.
dustry- Government cooperation;
Government will promote cooperation 218. To expedite the formation of
through joint projects and programs of critical skills to facilitate faster take off,
mutual interest to R&D centers, SMEs special programmes to train in relevant
and large firms to spur innovation and skills in emerging industries and tech-
entrepreneurships. Government minis- nology will be undertaken. Special pro-
tries will be required to budget and im- grammes for Nano technology, space
plement STEI joint initiatives between exploration, nuclear technology, bio sci-
their R&D departments, academia and ences, ICT and engineering will be put
industry. Government will specifically in place to facilitate Ugandans study in
attract reputable international firms top international universities but will be
which have high R&D content to set-up bonded by Government.
PAGE
219. Government will setup science science innovation will be key in the ar-
and technology parks, engineering cen- eas of agriculture, health and medicine,
tres, technology and business incuba- and bio-energies. Specific research pro-
tion centers that meet international grams in these areas will be instituted.
standards. These will reduce the cost of
product development and innovations. 222. Government will support Inno-
vation financing by introducing special
220. The fifth revolution the world is grants, loan and guarantee for start-ups
witnessing is in the field of Nano tech- and new firms as well as subsidies and
nology which will provide the ultimate tax incentives to stimulate research and
convergence of computers, networks, development in the public and private
and biotech, and create products that sectors.
were never before imagined. The Nano
devices will be invisible, intelligent, and 223. There is need to encourage
powerful-will be used in every industry greater interest in careers in science
redefining the limits of what's possible and technology at an early stage of
especially in areas of energy, bio-tech- human capital development. A special
nology, manufacturing, ICT, defence science and math awareness program
and security, health and education. to discover science and engineering
Nano-science and nanotechnology are programmes will be instituted from pre-
at the intersection of almost all disci- primary to higher education levels to in-
plines, including biology, engineering, terest the young generations to encour-
medicine, physics and chemistry. Gov- age young people to pursue careers in
ernment will support special Nano sci- science, engineering and technology.
ence- nanotechnology programme by
training the appropriate human resource 4.2.5 Urban Development
in world class universities and on return
be deployed and bonded in appropriate 224. Urbanization plays a key role in
fields. the development process. Highly ur-
banized countries such as Malaysia,
221. Uganda has a fair advantage in Singapore and China tend to have high-
the area of bio-sciences and will spe- er income levels, stable economies and
cially be developed accordingly. The bio stronger institutions. These countries
PAGE
have attained high levels of urbanization The over concentration of development
through integrated physical planning in Kampala has led to primacy putting
and investment which has led to estab- enormous pressure on the overall func-
lishment of commercial and industrial tioning of the cities itself compared to
functional zones. These zones have at- other urban settlements across the
tracted populations and in the process country.
relieved pressure on the available land
for other economic activities such as 226. Over the Vision period four ad-
commercial agriculture. ditional regional cities will be estab-
lished namely; Gulu, Mbale, Mbarara
225. Uganda’s level of urbanization is and Arua. In addition, other strategic
about 15 percent with GKMA contribut- cities will include; Hoima (oil), Nakason-
ing up to 10 percent. The urbanization gola (Industrial), Fort Portal (Tourism),
process in Uganda has been charac- Moroto (Mining) and Jinja (Industrial).
terized by uncoordinated planning and Consideration for other emerging urban
developments leading to unrestricted centres with the requisite conditions for
sprawling of the major cities and towns. city status will be accorded.
Modern road
infrastructure envisioned
by 2040.
Proposed freeway in Kampala;

mass public transport will be
developed to facilitate efficiency
and reduce congestion and pol-
lution
PAGE
Figure 4.6: Proposed Strategic Cities & Road Network
PAGE
Figure 4.7: The planned road network for Greater Kampala Metropolitan Area
PAGE
227. Government will control urban 230. Over the Vision period, environ-
sprawling through legislation, integrat- ment and waste management will be
ed physical planning and strict develop- emphasized in line with the integrated
ment control and increasing density of physical planning models. This will en-
settlement by construction of high rise tail strict control of pollution, wetland
buildings. This will involve adopting management, waste management and
well-planned high density settlement promotion and protection of green ar-
for Kampala and medium density set- eas, open spaces and corridors.
tlement for the regional and strategic
cities. 4.2.6 Land
228. Government will develop and 231. Land, as a factor of production,

ensure implementation of the area is a crucial resource for transforma-
physical master plans to guide the es- tion through various business ventures
tablishment and development of GKMA, and provision of public utilities. The
regional and strategic cities, and other 1995 Uganda Constitution decreed that
urban centres. This will take into con- “Land belongs to the people”. For the
sideration provision of social amenities proposed investments to materialize,
such as education and health, and rec- both the Government and other inves-
reational facilities. tors must have easy access to land for
that purpose. Currently the land holding
229. In addition, traffic and transpor- in Uganda is characterized by multiple
tation management within the cities and land tenure systems (freehold, mailo,
other urban centres will be based on the leasehold and customary land) and
national transport master plan as earlier multiple land rights for the same land
envisioned in section 4.2.2. In Kampala, holding.
envisioned to remain the main Capital
City in the country, several ring roads 232. Only 20 per cent of the land is ti-
are planned to help evacuate traffic and tled and 80 per cent is under customary
ease congestion, and improve traffic tenure system. To ensure that land own-
flow. Traffic flow for other cities will also ership facilitates development, Govern-
be well planned quite before the envis- ment needs to roll out a systematic
aged development. land demarcation and survey the entire
country over the Vision period.
PAGE
233. Undertake policy reforms to en- commercialisation among other devel-
sure that land facilities, land use regu- opments.
lation and land development enhance
economic productivity and commercial 236. As per the constitution, Govern-
competitiveness for wealth creation and ment or local government shall con-
overall social economic development in tinue to hold in trust natural lakes, riv-
an integrated and sustainable manner. ers, wetlands, forest reserves, game
Gorvernment will computerise the Land reserves, national parks and any land to
registration system to ensure efficient be reserved for ecological and touristic
and effective land management. purposes for the common good of all its
citizens.
234. Government will, as much as
possible, ensure that land acquisition 237. Over the Vision period, Govern-
is driven purely by market forces, within ment will put in place a mechanism to
the framework of the zoning laws and ensure that district and international
with minimum distortion. In the case boarders are secured and any disputes
of customary land holding or in cases addressed.
where people holding land under other
tenure systems are unwilling to sell, 4.2.7 Peace, Security and Defence
massive sensitization programmes and
negotiations will be promoted under the 238. Peace, security and defence are
auspices of the Government or other prerequisites for a sustainable socio-
mutually trusted organizations or per- economic transformation, democracy
sons to ensure that the interests of all and national unity. National defence and
parties are duly protected. In order to security will entail ensuring: national se-
promote a culture of trust and fair play, curity for the people and their property;
land tribunals will be activated to pro- cooperating with civil authority in emer-
vide redress for people or organizations gency situations; and in cases of dis-
that will feel aggrieved in land matters. aster, fostering harmony, understand-
ing between the defence forces and
235. Government will make land re- civilians; participating in regional and
forms to facilitate faster acquisition of international operations; and engaging
land for planned urbanisation, infra- in productive activities contributing to
structure development, and agricultural national development.
PAGE
239. The society fabrics at individual, wards others at local, national and inter-
household, community and national national levels.
levels must be at peace for any devel-
opment to take place. Uganda therefore 241. Over the Vision period, the cur-
needs to promote tolerance, benevo- rent peace and security that the country
lence, constructive dialogue and open- enjoys shall be consolidated, promoted
ness towards others in order to have and developed. Focus will be on se-
a peaceful society that supports rapid curity of the country from any form of
economic and social development. aggression, peace-building and con-
flict management. Government will
240. Uganda will consolidate a se- strengthen the national defence sys-
cure and stable society operating on tems, ensure a professional army and a
the principles of justice, equality and reserve force ready to defend the coun-
the rule of law. The country will foster try. In addition, government will ensure
good governance through democracy, peace in the country and peaceful co-
equal representation, equity, tolerance, existence with the neighbours and the
constructive dialogue and openness to- international community. Priority shall
be placed on anti-terrorism measures.
The Country will strengthen the

national defence systems, ensure
a professional army and a reserve
force ready to defend the country
PAGE
242. To ensure security of all persons 243. To keep pace with global chal-
and property throughout the country, lenges and demands for defence and
Government will implement the follow- security the country will invest in in-
ing strategies; promoting public-pri- creasing its capabilities in line with
vate cooperation and civil/community technological changes.
involvement for improved safety and
security; deepening policy, legal and 244. Uganda will also need to en-
institutional reforms for improved enhance its important and constructive re-
forcement of law and order; promot- gional role, especially within the frame-
ing processes for national and inter- work of the EAC, Great lakes region,
community dialogue among ethnic and IGAD, and the African Union. Uganda
other interest groups; and Peace build- will strive to be an active member of
ing and reconciliation through increased the international community which con-
access to information by the popula- tributes to its economic development,
tion, enhancing counselling services, peace and security.
establishment of mechanisms for intra/
inter communal and national conflict
resolution, strengthening local govern-
ance and informal leadership structures
and reinforcing the socioeconomic rein-
tegration of ex-combatants.
PAGE
Chapter
5
Over the Vision period, ef-
forts will be made to Incul-
cate the spirit of partriotism,
national identity and the
value for a common good.
PAGE
Chapter
SOCIAL TRANSFORMATION
245. As Uganda aspires to see her 246. Uganda has registered a signifi-
citizens enjoying a high quality stand- cant reduction in the proportion of the
ard of living, it will focus on improving; population living below the poverty line
the quality of its population, health and declining from 56 per cent in 1992 to
nutrition status, literacy and numeracy, 24.5 per cent in 2010. However, it still
housing, water and sanitation condi- remains high compared to less than
tions and provision of social protection 6per cent in Malaysia and South Ko-
for the citizenry. Focus will also be put rea. The figure 5.1 presents the poverty
on reducing the number of people living headcount trends over the years and
in absolute poverty. across regions.
Figure 5. 1: National and Regional Poverty Estimates
Source: UBOS
PAGE
5.1. Population: there will be complete transition from
high fertility (6.7 children per woman) to
247. To emerge into a strong middle- low fertility (4 children per woman) over
income economy in the coming dec- the 30-year projection period.
ades, available evidence suggests that
Uganda will have to take into account 249 As a result of this high fertility
population factors as part of the de- rate, Uganda has one of the youngest
velopment equation. Uganda’s popula- populations in the world with nearly
tion is its biggest and one of the most half of them aged below 15 years. This
important resources which must be young population presents an opportu-
harnessed to facilitate faster socio- nity that the country can capitalize on to
economic transformation. Currently es- increase its competitiveness.
timated at about 32 million with slightly
more females than males, the popula- 250. To improve the quality of the
tion is growing at an annual rate of about population over the Vision period,
3.2 per cent, the third highest in the Uganda will focus on creating a more
World. At this growth rate, the popula- sustainable age structure by reducing
tion is projected to reach 93.4 million in the high fertility rate through increased
the next 30 years. The high growth rate access to quality reproductive health
has been attributed to the high fertility services, keeping all children of school
rate of about 6.7 children per Ugandan going age in school with more empha-
woman. sis on the girl child. In addition, Govern-
ment will focus on building an efficient
248. Uganda population size by itself health services delivery system. These
is not the problem but rather the qual- strategies will be supplemented with in-
ity of the population which is dominated centive oriented population control poli-
by unproductive age groups. In the next cies and laws as has been the case in
30 years therefore, it is estimated that the developed economies.
with the gradual decline in the growth
rate from 3.2 per cent up to 2.4 per cent 5.2. Health and Nutrition
in the next 30 years, the projected pop-
ulation will be lowered to 61 million by 251. Good health is instrumental in
2040. In the declining fertility projection, facilitating socio-economic transfor-
PAGE
mation. Over the years, Uganda has During the Vision period, there will be a
made some progress in improving the paradigm shift from facility-based to a
health conditions of the population. The household based health delivery sys-
country has registered improvement in tem. The main thrust of this paradigm
key health indicators: life expectancy is an empowerment of households and
at birth improved from 52years in 2008 communities to take greater control of
to 54 years in 2011; maternal mortal- their health by promoting healthy prac-
ity ratio reduced from 435 to 325 per tices and lifestyles. This shift will be
100,000 live births in 2006 and 2011 anchored on preventive over curative
respectively; and infant mortality rate health service delivery approaches.
reduced from 76 in 2006 to 63 per 1000
live births in 2011. However, as com- 253. The preventive health system is
pared to other countries this progress is considerably cheaper to run and hence
still slow as demonstrated in figure 5.2. by far more sustainable. Similarly, it is
built on readily available primary health
252. The slow progress is mainly at- care providers as opposed to highly
tributed to the current health service skilled professionals. This is the type of
delivery system which is facility-based. health system that developed countries,
Figure 5.2: Infant Mortality Rates Over Time (/1000 Live Births) of Selected
Countries
Death per 1000 Live Births
Years
Source: CIA, World fact book 2010.
PAGE
Government in partnership
with the private sector and
other advanced countries will
also focus on building highly
specialized health care ser-
vices.
such as United States of America, de- billion (USD 65 million) per year at pre-
pended on in the initial years to deliver sent value; and provide a strong return
health standards of expectation of life at on public investment – for every one
birth of 70 years. thousand shillings invested, an esti-
mated six thousand shillings worth of
254. Another key health strategy will increased productivity will result from
be to improve the nutrition status of the reduced child stunting, improved ma-
population especially for young chil- ternal health, enhanced micronutrient
dren and women of reproductive age. intake, and improved nutritional care.
In addition, a school feeding policy will
be developed and implemented. It is 255. Uganda’s current health service
projected that this strategy will reduce delivery system is expensive, inefficient
the number of maternal deaths by over and not sufficiently responsive to the
6,000 and child deaths by over 16,000 health needs of the different catego-
every year; and increase national eco- ries of the population. Addressing these
nomic productivity, both physical and challenges calls for a policy shift in the
intellectual, by an estimated UGX 130 health delivery system from mainly pub-
PAGE
lic centered to a public-private-partner- that are currently being treated outside
ship arrangement. One of the key strat- the country. This strategy will also posi-
egies will be to adopt a universal health tion Uganda as a regional herb for qual-
insurance system. ity health care provision. Specialized
training and increasing remuneration of
256. While the primary health care health professionals will be an integral
services will be provided at community component of this strategy. Govern-
level the non-communicable diseases ment in collabration with the private
will be managed at health sub-district sector will establish international and
level as the lowest level of specialized national hospitals in each regional city.
treatment. Government in partnership
with the private sector and other ad- 5.3. Education and Literacy
vanced countries will also focus on
building highly specialized health care 257. Over the last 15years, Uganda
services. This way Uganda will be able has made tremendous progress in im-
to treat specialized medical conditions proving literacy levels of the citizenry.
The education curriculum,

examination and instruction
methods will be revised to
suit the proposed changes in
the education system as well
as being responsive to the
market demands. PAGE
The literacy rate for persons aged ten 261. All Government-supported ter-
years and above increased from 69 per tiary education will be devoted to skills
cent in 2006 to 73 percent in 2010 with development according to the talents
that of males being higher than females. and aptitudes identified. Students will
This is attributed to the implementation be accorded opportunities to excel in
of universal primary and secondary ed- whichever skills area they are placed.
ucation policies and programs. These will range from sports and the
arts, to technical and vocational tore-
258. Over the last fifteen years, the search and academic pursuit.
total primary school enrolment has
grown to about 8.7 million pupils, rep- 262. In addition, national service will
resenting over 90 per cent of the pri- be introduced to promote work ethics,
mary school age going population. On patriotism and voluntarism. The entir-
the other hand, secondary school en- eeducation system will be changed to
rolment increased by 25 per cent from emphasize practical skills, aptitude and
814,087 in 2006 to 1,088,744 in 2008 moral values. Undergraduate courses
with girls constituting 46 per cent. will include a full year of internship in
addition to course specific industrial
259. Retention in primary school on training in order to produce a human re-
the whole is low and exhibits gender source that is ready for the workplace.
disparities with 53 per cent of boys and
42 per cent of girls completing primary 263. The education curriculum, ex-
school as by 2006. amination and instruction methods will
be revised to suit the proposed changes
260. Over the Vision period, the pro- in the education system as well as be-
vision of universal primary and second- ing responsive to the market demands.
ary education will be considered as a Talent identification will be an on-going
human right and consolidated as basic exercise throughout the education sys-
education. Primary school years will tem so that the system is robust enough
be maintained at seven years while the to capture and nurture excellence and
secondary school years will be reduced innovation at point.
to four. During that time, emphasis will
be on character formation and talent
identification.
PAGE
264. Emphasis will be placed on social protection systems to respond to
keeping girls in school and improving the specific needs of these vulnerable
their completion rates through address- groups. For the vulnerable youth and
ing both institutional, gender and cultur- other able bodied persons, social pro-
al barriers in collaboration with social, tection interventions will be channelled
cultural and community groups. through public works schemes.
5.4. Care and Protection for the 5.5. Housing Development

Vulnerable Population Groups
268. Social transformation entails
265. The state recognizes the need access to decent shelter by the popu-
to provide assistance to people who are lation in both rural and urban settings.
vulnerable either by age, social class, Housing is essential for the well-being
location, disability, gender, disaster or of mankind and the conditions of the
do not earn any income. house are important in improving the
sanitation status of a household. In ad-
266. According to UNHS 2009/10, 38 dition, the condition of a structure could
percent of the children in Uganda are be a proxy indicator of the welfare status
vulnerable. In addition there are about of a household. Available data indicates
1.3 million older persons of which only that about 60 per cent of the population
7.1 percent have access to pension live in relatively decent shelters with iron
with 60 per cent being male. Overall, sheets roofing and brick walls.
7 per cent of the population in Uganda
has disabilities of which 47.6 per cent 269. In terms of household facilities,
have permanent disability. the UNHS 2009/10 indicates that the
majority in Uganda still use rudimental
267. During the Vision period a sys- facilities. The ‘‘Tadooba’’ remains the
tem of universal pension for every citi- most commonly used source of lighting
zen above the age of 65 years will be used in 66 per cent of households with
adopted. The case for the assistance to only 12 per cent using electricity. As
the orphaned children, the disabled and regards to cooking facilities, nearly all
the destitute is equally justified. Govern- households (95 per cent) still use wood
ment will also develop and implement fuels (wood and charcoal) as a main
PAGE
source of energy. Firewood is most 272. All Ugandans will have access to
commonly used by the rural household safe piped water and modern toilet fa-
(86 per cent) while charcoal is com- cilities. As part of the urbanization drive,
monly used by urban households (70 Government in partnership with the pri-
per cent). In addition, water and sani- vate sector will promote planned move-
tation condition in households are still ment of people from scattered rural to
lacking. As of 2010, 86 per cent of the planned settlements to ease delivery of
households in Uganda still used a pit utilities and other services.
latrine. Majority of households (82 per
cent) use toilets that do not have hand 273. In line with the projected fer-
washing facilities while only 8 per cent tility decline, Uganda will need about
have hand washing facilities with water 12.6 million new housing units in the
and soap. next thirty years. This means that Gov-
ernment in partnership with the private
270. Access to an improved water sector will invest in constructing appro-
source has increased from about 21 priate housing estates in planned urban
per cent in 1991 to 65 per cent in rural and rural areas to provide decent urban
areas while in the urban centres it rose settlements.
to 66 per cent in 2009. Rural-urban dif-
ferentials show that urban households 5.6. National Culture
travel 0.2 Km to the main source of
water compared to those in rural areas 274. Many developed countries have
(0.8Km). Although access to improved evolving ideological frameworks based
water source has increased, only 15 per on the shared values concept. These
cent access tapped water. frameworks help to evolve and anchor
a national identity by incorporating vari-
271. Over the Vision period, Govern- ous elements of the country’s cultural
ment will expand the rural electrification heritage, attitudes and values.
programme to cover the whole country.
In addition, alternative energy sources 275. Culture is a symbolic commu-
such as solar, natural gas and biogas nication of a nation’s skills, knowledge,
will be promoted. attitudes, values, and motives learned
and deliberately perpetuated in a so-
PAGE
ciety through its institutions to propel the nurturing of a progressive national
socio-economic transformation. The culture with positive attitudes, values
lack of a shared Ugandan culture and and mind-sets will be a fundamental
national value system has created di- element of Uganda’s development pro-
vergence in perceptions, mindsets and cess.
attitudes given the diverse nature of
Ugandan people. It has thus, limited 278. The development of policies and
unity, spirit of patriotism, national iden- programmes that will define national
tity and constrained integrity and lack of culture, behaviour and ethical conduct
appreciation and value for the common of the citizens will also follow suit. This
good. will be combined with rule of law and
rule of virtue in running the nation to
276. Uganda lacks a national culture; raise ideological, moral standards and
a system of shared beliefs, values, cus- scientific development.
toms, behaviours, and artefacts that
citizens should use to identify them as a 279. In addition, deliberate pro-
Ugandan people and refinement of the grammes with a specific focus on cre-
individual and fulfilment of national as- ating a shift in thinking and practices
pirations. This partly accounts for Ugan- amongst the Ugandan people and more
da’s lag behind countries that were at especially the young people will be de-
the same level of development with it veloped and implemented. The values
in the early 90s and is one of the con- that will be inculcated will include ac-
straints to Uganda’s socio-economic knowledging our national destiny, put-
transformation efforts. ting the nation first, unity, respect for
each other, and the respect for human
277. In the next 30 years therefore, rights, good governance, transparency
Uganda will develop and popularize a and accountability. This way, the nation
national value system based on a shared will create a population that cares about
national Vision to guide the behaviour its country and masses who are well in-
and culture of the Ugandan people. This formed about their roles, duties and ob-
will facilitate the convergence of various ligations in nation building.
cultures and strengthen unity in diversi-
ty of the Ugandan people. By so doing,
PAGE
280. The need for a national service high on Government’s agenda in a bid to
programme to mobilise and sensitize integrate gender issues in development
all citizens, especially the youth, to ap- plans and programmes.
preciate and participate in the transfor-
mation process cannot be underesti- 282. As a result, positive outcomes
mated. This will facilitate development have been realised in all spheres at vari-
of a common identity and enhance civic ous levels and these include; increased
responsibility. It is important that young women participation in governance,
men and women as the country’s most with about 33 per cent representation
important resource are equipped and in the national legislature, 28 per cent in
developed to play a meaningful role in the executive and continued women oc-
the reconstruction and development of cupation of key positions in the judiciary
the country. and public service.
5.7. Gender Equality and Women 283. Gender gaps in education have
Empowerment for Socio-economic also been lowered through Universal
Transformation Primary and Secondary Education Pro-
grammes, with an enrolment rate of 84
281. Over the years, Uganda has per cent for both girls and boys at pri-
made effort to promote Gender equality mary level (MGLSD, 2007). The propor-
and empower women to participate as tion of the adult literacy rate for women
equal partners in development. Ugan- to that of men has also greatly improved.
da’s Constitution guarantees equality
between women and men before the 284. However, the conditions that de-
law. In line with this, a policy of affirma- pict gender inequality are still salient in
tive action was adopted to partly ad- Uganda’s economy and these mainly in-
dress gender inequalities and promote clude: gender disparities in access and
women empowerment in political, so- control over productive resources like
cial and economic spheres. The Nation- land; limited share of women in wage
al Gender Policy and National Action employment in non agricultural sectors;
plan on women were also formulated to sexual and gender-based violence; lim-
support the implementation of the Con- ited participation in household, commu-
stitutional and Policy provisions. In ad- nity and national decision-making.
dition, Gender mainstreaming has been
PAGE
285. Considering that women consti- lies with young children to work from
tute over 51.2 percent of Uganda’s pop- home or have flexible working hours.
ulation, it will be paramount in the next
30 years to reduce gender inequalities 288. The challenges faced by women,
as a prerequisite for accelerating and the minority groups and other marginal-
sustaining socio-economic transforma- ized groups in accessing and using land
tion. Women and men of Uganda will for production will also be addressed
thus be treated as equal partners in de- through land reforms and domestic rela-
velopment right from the household to tions laws and programmes. This way,
the Country level. women and other marginalized groups
will effectively use land to support the
286. Over the next 30 years therefore, agriculture production and productivity
effort will be made to ensure gender re- goals for the realization of this Vision.
sponsive policies, programmes and ac-
tions. Because of our history of women 289. The total elimination of harm-
being left behind the development pro- ful and non-progressive socio-cultural
cess due to socio-cultural factors, de- practices that affect the health, wellbe-
liberate effort will be made to enable ing and progress of both men and wom-
women to equally participate in educa- en will be tackled during the 30 year
tion and skills development, business, period to allow and give opportunity
agriculture and industry as well as their to every Ugandan to fulfil their desired
equal political representation at all lev- potential and live a life of dignity. These
els among other development aspects. include among other; the elimination of
practices such as female genital muti-
287. Furthermore, because of wom- lation (FGM), Gender based violence,
en’s unique biological and gender roles early marriages, child sacrifice, denial of
especially of child bearing and rearing, the right to education and participation
measures, deliberate policies and pro- in employment.
grammes will be put in place, to facili-
tate them to equally participate in the 290. To facilitate the goal of reduction
development process. Such means will of fertility among Ugandan women to
include among others; policies for flex- about 4 children per woman, deliberate
ible working conditions to enable fami- effort will be made to keep all girls and
PAGE
boys of school going age in school and use of Genetically Modified Organisms
ensure that they are absorbed in the job (GMOs); imported chemicals (petroleum
market immediately after their educa- products; agriculture chemicals; cos-
tion. Such effort will include putting in metics; drugs and chemicals embedded
place policies like affirmative action for in electronic gadgets among others) and
girls and other poor children to keep in bio fuels. This has led to loss of biodi-
school and facilitating all the youth to versity and environmental degradation
get absorbed into the job market. This in general.
will help to reinforce other population
policies. 292. In the past three decades, Gov-
ernment has put in place elaborate ENR
5.8. Environment and Natural Re- policies, laws, regulations and stand-
sources (ENR) ards to guide the management of the
environment including: the National En-
291. Uganda’s environmental endow- vironment management Policy (1994);
ment is largely constituted by its water Uganda Forestry Policy (2010); the En-
resources and wetlands, biodiversity ergy Policy for Uganda (2002); National
and ecosystem health, land resourc- Environment Act (Cap 153); National
es, fisheries resources, forests and oil Forestry and Tree Planting Act (Act 8 of
and gas resources. The state of these 2003), etc. However, the level of compli-
resources has been facing increasing ance to these ENR policies, laws, reg-
challenges including: rapid deterioration ulations and standards is still very low
of the quantity and quality of the natural leading to misuse and degradation of
resource base mainly due to increased the environment.
pressure from high population growth
and economic activities; poor disposal 293. Over the Vision 2040 period ef-
of solid and liquid waste from industries forts will be undertaken to attain a green
and human settlements among others; and clean environment with no water
additions of electronic waste, radioac- and air pollution while conserving the
tive waste, plastics and polythene ma- flora and fauna and restoring and adding
terials, industrial wastes and medical value to the ecosystems. Sustainable
waste to the traditional organic wastes, utilization of the ENR will be addressed
noise pollution, invasive alien species, in line with Uganda’s commitment to the
PAGE
principles of the Rio Declaration on En- land and enhancing private investment
vironment and Development, the Pro- in forestry through promotion of com-
gramme for the Further Implementation mercial tree planting on private land
of Agenda 21 and the Plan of Implemen- and adoption of green agriculture prac-
tation of the World Summit on Sustain- tices. This will lead to restoration of for-
able Development (Johannesburg Dec- est cover from the current 15 per cent of
laration on Sustainable Development) the total land area to 24 per cent.
among others. Uganda will take urgent
measures to protect the environment 296. Restoration of degraded wet-
and natural resources and ensure their lands, hill tops, rangelands and other
future sustainability. fragile ecosystems will be achieved
through the implementation of catch-
294. In addition the concept of the ment –based systems, gazetting of vital
green economy will be considered in wetlands for increased protection and
the context of sustainable development use, and monitoring and inspecting res-
and poverty eradication as one of the toration of ecosystems (wetlands, for-
important tools available for achieving ests, catchments).
sustainable utilization of the ENR sec-
tor in Uganda. The green economy will 297. Conservation and wise use of
contribute to eradicating poverty as well ENR and cultural diversity for collective
as sustaining economic growth, en- benefit of the present and future gener-
hancing social inclusion, improving hu- ations and adoption of patterns of pro-
man welfare and creating opportunities duction, consumption and reproduction
for employment and decent work for all, that safeguards the environment will be
while maintaining the healthy function- undertaken as a matter of urgency.
ing of the ecosystems.
298. Government will promote the
295. Efforts will be made to restore development, adoption and equitable
and add value to the ecosystems (wet- transfer of environmentally sound tech-
lands, forests, range lands and catch- nologies and assist the population to
ments) by undertaking re-forestation internalize the full environmental and
and afforestation on public land, pro- social cost of goods and services.
moting participation of the population in
tree planting on both private and public
PAGE
299. Furthermore efforts will be di- 302. The institutional framework for
rected towards the creation of effective environment and natural resources
partnership and cooperation with the in- management that responds coher-
ternational community on environmen- ently and effectively to current and fu-
tal sustainability. This is to be achieved ture challenges and efficiently will be
through ensuring that agreed commit- strengthened. This institutional frame-
ments related to Uganda’s development work will bridge gaps in the implemen-
needs made at various UN Summits tation of programmes and policies in
and Conferences are observed and im- the ENR sector. Government will ensure
plemented by the international commu- that the institutional framework inte-
nity. grates the three dimensions of sustain-
able development in a balanced manner
300. The role of the civil society and and enhance implementation by, inter
the importance of enabling all members alia, strengthening coherence, coordi-
of civil society to be actively engaged nation, avoiding duplication of efforts
in sustainable development will be fun- and reviewing progress in implementing
damental in managing the environment. sustainable development.
Government will improve the participa-
tion of civil society in ENR management 5.9. Climate Change
by, inter alia, strengthening access to in-
formation, building civil society capacity 303. Climate Change is a change in
and creating the enabling environment the statistical properties of the climate
for their participation. systems when considered over long
periods of time regardless of the cause
301. The role of women in manag- ((UNFCC, 1994). No country is immune
ing the ENR is critical and therefore the to the impacts of Climate Change and
Government will promote gender equal- this poses a great challenge to Uganda
ity and women’s empowerment to en- and the world albeit LDCs are more vul-
sure their full and effective participation nerable because of their limited capacity
in the development and implementation to cope. It is certain that Uganda is ex-
of policies, programmes and decision- periencing signs and effects of Climate
making at all levels. Change as manifested by: the change
in rainfall patterns which are low and
PAGE
poorly distributed, prolonged drought; tions Framework Convention on Cli-
emergence of diseases like malaria in mate Change (UNFCCC) and ratified the
areas that were previously mosquito Kyoto protocol, and is privy to a num-
free; loss of soil fertility emanating from ber of Multilateral Environmental Agree-
heavy overrun; frequent floods; and ments (MEAs) that have strong links
higher temperatures which provides a with climate change. National plans and
fertile impetus for pests and diseases. policies include the National Adaptation
Plan of Action (NAPA 2007), National
304. Climate Change affects all sec- Development Plan (NDP 2010/11 –
tors of the economy making the need 2014/15), the Renewable energy Policy
for preparedness inevitable. It affects (2007), the Disaster Management and
infrastructure through wash away of Preparedness Policy inter alia.
bridges, prolonged droughts reduce
water levels thus affecting the volume of 306. There is however, still poor un-
water required to run the turbines that derstanding of climate change and vari-
produce Hydroelectricity, floods result ability in Uganda and hence inadequate
into epidemics like cholera and malaria adaptation and mitigation measures
while high temperatures affect the pro- currently in place in the country. There is
ductivity of temperature sensitive crops insufficient attention being given to cli-
like coffee and cotton. This implies that mate change initiatives by the Govern-
sectors and local Governments must ment, the private sector, the civil society
plan to adapt to climate change while and at community levels. At the global
undertaking mitigation measures in level, the issues of mitigation and ad-
some cases. Critical measures to pre- aptation which affect Uganda like other
vent erosion of climate security, includ- LDCs are still being neglected.
ing viable food production and personal
health need to be assured. 307. Over the Vision 2040 period,
Government will develop appropri-
305. Over the years, Government ate adaptation and mitigation strate-
has responded in form of policies, pro- gies on Climate Change to ensure that
grammes, projects and interventions to Uganda is sufficiently cushioned from
alleviate the impacts of Climate Change. any adverse impact brought by climate
Uganda is signatory to the United Na- change. The use of the guidelines for
PAGE
incorporating climate change in sector, 310. Government will increase ca-
and local Government plans and budg- pacity to cope through upsurge of fund-
ets will be popularized. ing to climate change initiatives in a
bid to reduce the level of vulnerability.
308. Appropriate adaptation and This will be through liaison with devel-
mitigating strategies on climate change opment partners who will be identified
will be developed in all sectors to in- and programs developed to strengthen
crease the country’s resilience to the partnership arrangements. Government
impacts of climate change. To this ef- will continue to participate in, and ben-
fect, knowledge and information shar- efit from, international arrangements on
ing with the relevant stakeholders on climate change and variability and in
climate Change and variability will be particular focus on how to tap on the
the starting point in this endeavour. available global climate change funding
mechanisms.
309. Government will develop poli-
cies and organizational structures to 311. A comprehensive Monitoring
address climate change. Emphasis will and Evaluation mechanism to observe
be on strengthening coordination sys- the implementation of national guide-
tems at both national and local levels lines will be established. The strategy
and building the capacity of local gov- will have clear milestones and analytical
ernance and decision making bodies. In tools
addition enabling strategies with legal
instruments will also be put in place.
PAGE
Chapter
6
The Uganda Crested Crane is the country’s official
bird. It is a friendly, gentle and peace loving bird,
characteristics which are certainly true of the Ugan-
dan people. Uganda has 1061 bird species reflect-
ing 11 per cent of the total world bird species
PAGE
Chapter
GOVERNANCE
6.1. State of Governance cated in 1894. Uganda attained inde-

pendence in 1962 signifying the birth
312. Good Governance is the back- of a sovereign and democratic state.
bone on which the development pro- Since then Uganda has made progress
cesses are based to ensure services in consolidating democracy and good
are delivered to citizens and that peace governance. Progress was achieved in
reigns in the nation. This Vision aims at the areas of promulgation of a people
consolidating the tenets of good gov- centred Constitution, periodic election
ernance which include constitutional of leaders at all levels, collective deci-
democracy; protection of human rights; sion making through the decentralised
the rule of law; free and fair political and system of governance, rule of law, re-
electoral processes; transparency and spect and protection of human rights,
accountability; Government effective- and institutional reforms to strengthen
ness and regulatory quality; effective the three arms of Government.
citizens participation in development
processes; and peace, defence and se- 314. Similarly, Uganda has faced
curity of the citizens and the country. challenges in its desire to consolidate
good governance and democracy in-
313. The current Uganda was formed cluding: abrogation of the 1962 Consti-
from existing indigenous Kingdoms, tution, military coups, political instabil-
chiefdoms and sedimentary socie- ity, rebellions, unstable regimes, lack of
ties existing in the region. The current national unity, and lack of a coherent
boundaries of Uganda were demar- and distinct political ideology. Over this
PAGE
period the formulation of public policy relative peace, stability and good gov-
has not been entirely by the people as ernance as illustrated in figure 6.1.
envisaged in a republic setup and there-
fore shifted with the various regimes. 315. Democracy supports economic
This affected the development of a na- development by providing stable politi-
tional agenda that could be sustained cal conditions and composite policies in
over a long period regardless of regime line with national development agenda,
change, consolidation of good govern- and reliable investment climate. Similar-
ance and sustainable development. ly democracy may slowdown develop-
There is a positive correlation between ment when the policies do not support
socio-economic gains and periods of economic uplift due to conflict with so-
Figure 6.1: Impact of instability on GDP Trends in Uganda
Years
PAGE
cial traditions and public expectations. 317. The tenets of a sound democra-
A review of the development paths of cy will be upheld during the Vision peri-
various countries in relation to the type od including: constitutional democracy;
of democracy and level of governance protection of Human Rights; the rule of
shows that there is no robust relation- law; political and electoral processes;
ship between development and govern- transparency and accountability; Gov-
ance. During the Vision period, democ- ernment effectiveness and regulatory
racy shall be strengthened based on quality; and peace, defence and secu-
national values, aspirations, and a pro- rity.
gressive national culture acceptable to
the people of Uganda in conformity with 6.2. Constitutional Democracy
the constitution, aimed at uplifting their
standards of living and socio-economic 318. Uganda is a constitutional de-
transformation. The level of develop- mocracy and all the legislative Acts of
ment in a country determines the na- Government will be enacted in con-
ture of democracy adopted. Therefore formity with the Constitution which is
Uganda will adopt a developmental de- both the supreme law at the domestic
mocracy suited for its own circumstanc- level and the foundation on which the
es. exercise of all powers within the state
is based. Measures shall be undertaken
316. In the context of this Vision gov- to ensure separation of powers of the
ernance will entail strengthening the tra- three arms of Government that is Parlia-
ditions and institutions by which author- ment, Judiciary and the Executive. The
ity in Uganda is exercised. This includes mechanisms for enabling independent
(a) the process by which Governments and effective functioning of each one of
are selected, monitored and replaced; them and maintaining the public’s confi-
(b) the capacity of the Government to dence in courts of law shall be strength-
effectively formulate and implement ened.
sound policies; (c) the respect of citi-
zens and the state for the institutions 319. All citizens of Uganda shall be
that govern economic and social inter- made aware of the Constitution and
actions among them; and (d) the protec- their rights and obligations therein, to
tion of Human Rights in the country. ensure they are law abiding. We shall
PAGE
The Uganda Parliament is
a symbol of constitutional
democracy
enforce national unity and cohesion as 320. Measures will be taken to rein-
a means of upholding the constitution. troduce the community spirit of togeth-
Swahili as a national language will be erness that will bring people residing in
promoted and integrated in education the same location to discuss issues of
curriculum. The Swahili version of the development, security and cleanliness.
National Anthem will be promoted. All This collective community spirit will be
public service delivery systems, includ- used as a spring board for the develop-
ing decentralised governance, will be ment of the national agenda to inculcate
reoriented to enforce national unity and national values. Strengthening of village
cohesion. A compulsory National Ser- level administration (local councils) and
vice System for citizens’ ideological re- the family unit.
orientation to foster national unity and
development will be set up. This will 321. In order to foster separation of
be a pre-condition for entrance to vo- powers the Ministers will not be mem-
cational and tertiary institutions. It will bers of either house of Parliament. In
also be a pre-condition for Government addition, the Judiciary will be strength-
employment at any leadership position ened through independence in recruit-
at all levels from the village to the Presi- ment and financing.
dency.
PAGE
6.3. Protection of Human Rights discrimination. Measures will be put in
place for implementing and monitoring
322. Over the Vision period, the re- progressive fulfilment of the rights and
spect for human rights and its funda- obligations.
mental principles shall be at the core of
development planning. It shall incorpo- 324. Policies and systems shall be
rate the National objectives and Direc- put in place to ensure management of
tive Principles of state policy and Bill of emigration and control of immigration.
rights as enshrined in the Constitution Additionally, data on population will be
and international bill of rights and other regularly updated and a national identi-
human rights treaties that Uganda is fication system established to track the
party to. This states that the legal ob- demographic changes. Measures to
ligation to respect and promote human ensure rights of refugees and internally
rights lies with the state, however, it is displaced people (IDPs) are protected
a duty and obligation of all citizens to will be strengthened. In addition, disas-
promote and protect these rights. ter mitigation and management meas-
ures shall be strengthened.
323. Government shall ensure that
the human rights based approach to 325. Government in collaboration
development is integrated in policies, with the private sector will continue to
legislation, plans and programs. This build the capacity of the media to en-
approach will strengthen the capacity able it to meaningfully participate and
of the duty bearers to respect, fulfil and support the country’s socio-economic
protect human rights; and that of the transformation. This will entail the de-
rights holders to know, claim and realize velopment of the media industry, pro-
their rights. Additionally, interventions motion of freedom of speech and ac-
that will respond to the needs of vul- cess to public information.
nerable and marginalized groups in so-
ciety shall be prioritized. Human rights 6.4. Rule of Law
education shall be integrated to develop
the capacity of citizens to undertake in- 326. The rule of law and the suprem-
formed participation at all levels in line acy of the Constitution will be upheld to
with the principle of equality and non- ensure that all individuals are subject
to and treated equally according to the
PAGE
law, and that no one is exposed to arbi- Prosecution (DPP) will be strengthened.
trary treatment. This means that all citi- To ensure the effectiveness of the DPP
zens and authorities, including armed there is need for a well-trained, fa-
forces and security forces, obey the law cilitated, equipped and effective po-
and have equal access to justice. lice. The capacity of the police will be
strengthened and police colleges will be
327. The independence of the Judici- equipped to offer specialized training
ary will be strengthened. The President for criminal and forensic investigations
will appoint judges at the court of appeal to ensure prevention and detection of
and Supreme Court level, while from crimes. The police training will ensure
the high court and lower are appointed that the rate at which the capacity of
by Judicial Service Commission. The police is developed is higher than the
Judicial Service Commission shall be rate at which crime is getting sophisti-
enabled to set competitive remunera- cated in the global context. There will
tion for judicial officers. Judgements be emphasis on prevention of crime
of courts will be respected by all arms through establishing community polic-
of government and enforced. ing in Uganda. The conditions of service
shall be improved to match the global
328. Over the Vision period the ca- standards.
pacity, security of tenure and the inde-
pendence of the Directorate of Public
Commercial Court; A
Temple of Justice
PAGE
6.5. Electoral and Political pro- dependent and professional people are
cesses selected; developing an informed and
active population through conducting
329. The will of the people of Ugan- of regular civic education programmes
da shall be the basis of the authority of and enriching the quality of Parliament’s
Government; this shall be expressed debates; and strengthening the laws on
through periodic and free and fair elec- non-discrimination to promote inclusion
tions which shall be by universal and of women, the youth and other disad-
equal suffrage and shall be held by se- vantaged groups in electoral and politi-
cret vote. In order to build lasting peace cal processes.
and empower the disadvantaged, inclu-
sive public participation will be upheld. 332. Also efforts will be made to
strengthen the use of ICT in the elec-
330. Regular free and fair elections, toral processes including; ultra-high
as one of the principal means for ensur- speed pervasive internet connectivity,
ing popular participation in the forma- biometric authentication mechanisms,
tion of Government and the monitoring electronic voting, and updating the vot-
of its performance, shall be conducted ers’ register. The ICT aided electoral
every 5 years. This will confer legitimacy process shall be linked to the national
on political systems by vesting them identification system.
with the mandate from the citizens.
6.6. Transparency and account-
331. During the Vision period, the ability
country will focus on enacting and oper-
ationalizing the necessary legal and in- 333. During the Vision period the
stitutional frameworks to support issue- policy, legal and regulatory framework
based political processes. In this regard, to support transparency and account-
therefore, Government will implement ability will be strengthened. Appropriate
the following strategies; enhancing the measures will be put in place to ensure
legal and regulatory framework covering strong implementation and monitor-
the electoral process; review composi- ing mechanisms for effective service
tion and structure of the Electoral Com- delivery. The institutions include; the
mission to ensure that non-partisan, in- Inspectorate of Government, Anti-
PAGE
Corruption Court, the Judiciary, DPP, 335. Government will review, pass
Criminal Intelligence and Investigations and operationalize necessary policy,
Directorate (CIID), Office of the Audi- legal and institutional frameworks to
tor General, and Directorate of Ethics. strengthen public transparency. The
The Whistleblowers Protection Act and specific strategies will involve; E-Gov-
Leadership Code will be implemented. ernment which will ensure all workflow
A value system that socially and institu- processes are computerised and im-
tionally promotes Zero tolerance to cor- prove responsiveness and reduce cor-
ruption, will be developed. Additionally, ruption, computerization of information
it shall recognise the associated danger systems to increase administrative ef-
signs and risk factors. ficiency; strengthening the legal frame-
work for ethics and integrity; promoting
334. Measures will be put in place to result-based management within the
strengthen Public Sector Management public service; strengthening parlia-
and Administration by ensuring that ment’s legislative oversight capacity;
the public officials are fully responsible and encouraging public access to in-
and accountable for all the resources formation and data including special
under their control. A business ap- measures to overcome barriers to ac-
proach will be introduced in the deliv- cess.
ery of public services where Heads of
institutions and ministries shall be fully 336. The citizenry will be empowered
responsible for managing their human to demand for better service delivery
resources, financial, and capital assets. from Government. This will lead to bet-
The Government will undertake reforms ter utilization of resources and signifi-
to consolidate the gains made in Public cantly reduce the incidence of corrup-
Financial Management in order to im- tion. Government will also ensure the
prove efficiency and effectiveness of ratification and domestication of the rel-
public expenditure management. The evant codes and standards. These will
National Identification System will be be relevant not only for benchmarking
implemented and the Anti Money Laun- good practices for improving good gov-
dering law will be enacted. ernance and sustainable development
but also enhancing the country’s com-
petitiveness through participation in key
economic organizations.
PAGE
6.7. Government Effectiveness During this period therefore, Govern-
and Regulatory Quality ment will introduce various innovations
that entail not only changes in structure
337. Over the Vision period, govern- and processes but also fundamental at-
ment shall adopt the business approach titudinal and behavioural changes that
for public service delivery where efficien- are precepts of socio economic trans-
cy, effectiveness and economy will be formation. Focus will be on reducing
the main basis of decision making. This the cost of public administration. In
will include high quality public services, addition focus will be on implementing
efficient civil service and independence performance measurement techniques,
from political interference, quality of improving pay and incentive systems of
policy formulation and implementation, the public sector, total quality systems
and the credibility of the Government’s in public service, ISO certification for all
commitment to such policies. All public public offices, and promotion of e-Gov-
services shall be available to all Ugan- ernment. To ensure good governance
dans without any form of discrimination. and harmonious development, Gov-
ernment will revitalize and strengthen
338. Coordination, implementation, the coordination and implementation of
monitoring and evaluation systems shall Government policies and programmes
be strengthened to ensure that all at na- so as to harness inter-sectoral linkages
tional, sector and local governments are and synergies.
fully harmonised. In doing this govern-
ment shall ensure the participation of all 340. The country will focus on
players including private sector, media, strengthening the devolved power to lo-
civil society, cultural leaders, religious cal Governments by increasing their tax
leaders and citizens. base so that local communities depend
less on central Government actions
339. Achievement of the national Vi- and more on their own initiatives and
sion calls for an efficient and effective organizational capacity. Government
public administration which depends will re-orient local Governments from
on well-functioning institutional struc- being mere service delivery vehicles to
tures as much as on skilled, dedicated agents of wealth creation and local eco-
and highly motivated public service. nomic development of their localities.
PAGE
Government will also promote formal East African Community Common Mar-
and informal civic education and action ket, COMESA, African Union, and the
programmes to increase participation Global community, and ensure effective
as well as promoting open engagement consular services. This will also entail
between Government and civil society putting in place measures to ease do-
with free flow of information. ing business, harmonise laws in order to
guarantee competitiveness and encour-
341. Government shall formulate and age increased investments.
implement sound policies and regula-
tions that permit and promote private 342. Uganda will review and put in
sector development. This will focus place laws and regulations that favour
on reducing regulatory costs and risks business development. In addition,
associated with obtaining business li- government shall ensure that business-
censes, and on simplifying compliance es observe internationally acceptable
procedures for small and medium en- standards in production and business
terprises. Government will promote processes.
awareness on the framework of the
PAGE
Chapter
7
The Buffalos are a common sight
in most of Uganda’s national parks
PAGE
Chapter
IMPLEMENTATION, MONITORING
AND EVALUATION STRATEGIES
7.1. Implementation zen will have a duty to promote democ-
racy and the rule of law; and acquaint
343. Implementation of the Vision himself or herself with the provisions of
2040 starts in the year 2010 and is a re- the Constitution and to uphold and de-
sponsibility of every citizen of Uganda. fend the Constitution of the Republic of
The Presidency, Parliament, Judiciary, Uganda. The citizens will be educated
Ministries, Departments and Agencies, on their roles in the implementation of
Local Governments, Private Sector, Me- this Vision and mobilised to perform
dia, Civil Society and Political Organiza- their key roles.
tions will align their plans and strategies
to achieve this Vision. 345. To facilitate ownership and im-
plementation of this Vision, mecha-
344. To effectively implement this Vi- nisms will be instituted to ensure that
sion, every Ugandan must fulfill his/ her every Ugandan understands and sup-
Constitutional duties and obligations ports the achievement of this Vision. It
including: being patriotic and loyal to will be translated, simplified and con-
Uganda and promoting its well-being; tinuously disseminated to all Ugandans
engaging in gainful work for the good in various fora to rally all Ugandans to
of the individual, the family, community participate in national development. It
and to contribute to national develop- will also be incorporated in the educa-
ment. Furthermore, realization of this Vi- tional curricula at all levels. Civil society
sion will require promoting responsible and the media will be key partners in the
parenthood; fostering national unity and dissemination and popularization of the
living in harmony with others. Each Citi- Vision.
PAGE
346. The overall responsibility for im- 348. Vision 2040 intervations will be
plementation of this Vision will be with prioritised and sequenced in the sub-
the President of the Republic of Ugan- squent NDPs in line with the country’s
da. The President will ensure that all development strategy described in this
policies, programmes and projects to Vision. In addition to providing a condu-
be formulated and implemented under cive investment climate (reducing cost
his/her tenure will be focused on the re- of production by investing in infrastruc-
alization of the Uganda Vision 2040. The ture, human resource development and
institution incharge of national develop- deepening governance) government will
ment planning and that of monitoring promote the development of resource
and evaluation will be tasked to ensure based industries in the first national de-
effective coordination and implementa- velopment plan and move to light and
tion of the Uganda Vision 2040. high tech industries in the later years of
Vision 2040 (see fig 7.2)
347. The implementation of this Vi-
sion is within the framework of the 349. A project mode of implementa-
Comprehensive National Develop- tion will be employed for key strategic
ment Planning Framework (CNDPF) as projects identified in the Vision in order
adopted by Government in 2007. In this to fast track their implementation.
regard, three 10-Year National Develop-
ment Plans; six 5-Year National Devel- 350. To ensure coordinated and har-
opment Plans; Sector Master Plans and monized implementation of this Vision,
Strategies; Local Government Develop- government will regularly engage the
ment Plans; and Annual Plans/Budgets private sector, the civil society and the
will be developed and implemented to media in the planning, implementation
realize this Vision (see Figure 7.1). All and monitoring and reporting of the
operational and strategic actions of progress in the realization of the Vision
government, private sector, civil soci- targets. The government will develop a
ety and media shall be directed to the mechanism that will facilitate the par-
implementation of the Vision. An ap- ticipation of all non-state actors in the
propriate policy, legal and institutional implementation of this Vision.
framework will be instituted to ensure
all government and non-government 351. To ensure a coordinated and
actors implement this Vision. harmonized implementation of develop-
PAGE
Figure 7.1: The Framework for Implementation of the National Vision
NATIONAL
VISION
LTEF 10-YNDP Overall

Development
Objectives
MTEF 5-YNDP
MID-TERM
REVIEW
SECTOR
MASTER Strategic
PLANS & Direction for 5
STRATEGIES Years
ANNUAL Priority
PLANS/ Activities for
BUDGETS the Year
ment projects, a National Spatial Plan the geographical location of projects in

will be developed. This will help achieve economically viable areas.
organized, equitable, sustainable, ef-
ficient and cost effective development. 352. The implementation of this Vi-
This spatial plan will facilitate public sion will be undertaken through the
policy and actions that will influence existing central and local government
PAGE
Figure 7.2: Proposed sequencing of National Vision 2040 priorities
AGRO MACHINE HIGHER HIGHER HIGHER

INDUSTRIES TOOLS TECHNOLOGY TECHNOLOGY TECHNOLOGY
INDUSTRIAL AERO SPACE AERO SPACE
ICT CITY FERTILISERS
CHEMICALS INDUSTRIES INDUSTRIES
WATER FOR IRON AND PETRO HITECH HITECH
HITECH SERVICES
PRODUCTION STEEL CHEMICALS SERVICES SERVICES
OIL & GAS MODERNISE MODERNISE NANO & BIO NANO & BIO
FERTILISERS
(REFINERY) INDUSTRIES INDUSTRIES TECHNOLOGY TECHNOLOGY
OIL & GAS IRON & MICRO MICRO
ICT BUSINESS ELECTRONICS
(PIPE LINE) STEEL ELECTRONICS ELECTRONICS
PUBLIC
R&D & R&D & R&D & R&D & R&D &
SERVICE
INNOVATION INNOVATION INNOVATION INNOVATION INNOVATION
REFORM
ICT INFRASTRUCTURE
FINANCIAL SECTOR DEVELOPMENT
HEALTH SYSTEMS DEVELOPMENT
HUMAN RESOURCE DEVELOPMENT (EDUCATION)
DEEPENING GOVERNANCE
TRANSPORT INFRASTRUCTURE
ENERGY INFRASTRUCTURE
NDP 1 NDP 2 NDP 3 NDP 4 NDP 5 NDP 6
systems and structures in line with the CSOs. Government will mobilise re-
decentralization policy. The effective sources using conventional and innova-
implementation of this Vision will require tive non-conventional means of financ-
review of policy, legal and institutional ing. These will include; tax and non-tax
frameworks periodically to enhance ef- revenues, revenue from oil and gas,
ficiency and effectiveness. Public Private Partnerships, conces-
sional loans and grants, borrowing from
7.2. Financing domestic and international markets. The
revenue from oil and gas will be used to
353. The financing of this Vision will kick start major infrastructure develop-
be mainly by the government, the pri- ment projects to enhance the country’s
vate sector, development partners and competitiveness. The domestic and
PAGE
international borrowing shall include; dinated to ensure priority areas are fi-
domestic and sovereign infrastructure nanced to minimize the impact on the
bonds, venture capital and investment macro economy and ensure that imple-
funds. In addition an infrastructure fund mentation mechanisms are in line with
will be established. existing international development sup-
port protocols and agreements.
354. The private sector shall con-
tribute to the financing of the Vision 7.3. Monitoring and Evaluation
through Public Private Partnerships, di-
rect domestic and foreign investments, 357. Monitoring and evaluation of Vi-
remittances from the diaspora, domes- sion 2040 shall be undertaken within
tic savings and pension funds. The the mechanisms of the Comprehensive
government shall introduce deliberate National Development Planning Frame-
mechanisms to attract major multi-na- work (CNDPF). The National Develop-
tional corporations in strategic sectors ment Plans shall periodically outline the
of the economy. Government will put in policy changes and strategies required
place mechanisms to ensure availability for cost-effective achievement of re-
of affordable credit from the financial in- sults aimed at realizing the country’s Vi-
stitutions. sion. The Vision monitoring and evalua-
tion mechanisms shall cover all sectors
355. The Civil Society Organizations, within the four blocks of the economy,
Faith Based Organisations and other namely: the public sector; the private
Non-Government Organizations will sector; the financial services sector;
play a role in resource mobilization and and civil society.
funding interventions towards the reali-
zation of this Vision. 358. The President shall have over-
all oversight responsibility for achieve-
356: Development partners will con- ment of the Vision targets sequentially
tinue to play a critical role in the devel- falling during his/her term of office. He/
opment of the country over the Vision she will therefore institute the necessary
period by financing key interventions as mechanisms for improved monitoring
proposed in Vision 2040. The efforts of and evaluation of the Vision. A com-
development partners will be well coor- mittee chaired by the President shall
PAGE
be instituted for purposes of reviewing progress. Government will put in place
progress of the Vision implementation strong data capture and management
annually. systems.
359. Parliamentary oversight func- 362. The private sector and civil so-
tions shall be strengthened to ensure ciety shall participate in independent
robust and comprehensive oversight of assessments of the country’s perfor-
the Vision implementation. mance towards realization of the Vision.
360. All plans and political party man- 363. Monitoring and evaluation of
ifestos shall be linked to the achieve- the Vision shall focus on assessment of
ment of the Vision through interventions, performance of the ten-year perspec-
indicators and targets that are consist- tive plans, five-year NDPs, the sector
ent with the strategies, outcomes and investment plans (SIPs) and local gov-
outputs elaborated in the Vision. In col- ernment plans. A balance score card
laboration with the department charged framework will be developed for all im-
with the responsibility for overseeing plementing sectors and egencies to fol-
the implementation of the Vision, the low in line with SIPs. The Vision moni-
body responsible for producing devel- toring and evaluation framework shall
opment plans shall produce annual and also make use and support production
other ad hoc progress reports required and analysis of data from national sur-
for assessing the implementation of the veys and reports on government perfor-
Vision. mance and performance of the entire
economy.
361. The MDAs and local govern-
ments shall be responsible for produc-
tion of regular reports on the Vision
PAGE

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UGANDA VISION 2040 |I

Oh Uganda! may God uphold thee,

Oh Uganda! the land of freedom.

Oh Uganda! the land that feeds us

Table 2.1: Baseline Status and Vision Targets...................................... 13

Table 3.1: Destination of Uganda’s Exports (% of total exports).......... 23

Table 3.2: The GDP Trend and Growth Rates Over

Figure 3.1: Uganda’s Comparative Growth Performance with Selected

Figure 3.2: GDP & GDP Per-Capita Trends (1962 - 2010)................................... 21

Figure 3.3: Growth Rates of Key Sectors............................................................ 22

Figure 3.4: The Trade Balance............................................................................. 22

Figure 3.5: Uganda’s Competitivenes with Upper Middle Income

Figure 3.6: Most Problematic Factors for Doing Business................................. 25

Figure 3.7: Labour Force Distribution by Sectors............................................... 26

Figure 3.9: Sector Shares of GDP (Actual and Forecasts)................................... 32

Figure 3.10: Savings to GDP Ratio of Selected Countries.................................. 33

Figure 3.11: Gross Capital Formation as a Percentage of GDP........................... 34

Figure 3.12: Tax Revenue as a percentage of GDP for Selected

Figure 4.1: Infrastructure Needs for Tourism Development................................. 42

Figure 4.2: Proposed Infrastructure for Mineral Development............................ 52

Figure 4.3: Proposed Economic Zones and Trade Areas.................................... 62

Figure 4.4: Proposed Railway Network............................................................... 71

Figure 4.5: Proposed Framework for STEI System............................................. 76

Figure 4.6: Proposed Strategic Cities & Road Network...................................... 80

Figure 5.1: National and Regional Poverty Estimates.......................................... 87

Figure 6.1: Impact of Instability on GDP Trends in Uganda................................. 105

Figure 7.2: Proposed Sequencing of National Vision 2040 Priorities................... 118

BOP Balance of Payment

Uganda Vision 2040 provides develop- The Vision 2040 is conceptualized

The financing of this Vision will be main-

Kiprotich wins a gold med-

1.1. Background 3. Over the last three decades,

1.2. Context and Rationale

f. Limited government investment i. Low level of saving and inad-

1.5 Structure of the Document

15. Chapter one of this Vision covers

THE VISION ASPIRATIONS,

2.1. Aspirations b. Ugandans aspire to have unity

26. Sustainable development is

Table 2.1: Baseline Status and Vision Targets

Percentage of population below the

Income distribution(GINI Coefficient) 0.43 0.32

Agriculture 22.4 10.4

Services 51.2 58.2

% share of national labor force employed 70.9 94

Manufactured exports as a % of total

Gross Capital Formation as % of GDP 24.1 30

Saving as a % of GDP 14.5 35

ICT goods & services as a % of total

Electricity consumption (kWh per capita) 75 3668

% population with access to electricity 11 80

Water consumption (m3 per capita) 26 600

% population with access to safe piped

% of cargo freight on rail to total freight 3.5 80

Agriculture 390 6,790

Industry 3,550 24,820

Total 1,017 19,770

Life expectancy at birth (years) 51.5 85

Infant mortality rate per 1000 live births 63 4

Child stunting as a % of under 5s 33 0

Literacy Rate (%) 73 95

Gender Related Development Index (GDI) 0.51 0.9

Population growth rate 3.2 2.4