Uganda

The 10th EDF Country Strategy Paper (CSP) and National Indicative Programme (NIP) contained in this document outline the framework for EC-Uganda cooperation for the years 2008-2013. The EC response strategy is in line with Uganda’s Poverty Eradication Action Plan (PEAP) and is consistent with the principles and guidelines of the Uganda Joint Assistance Strategy (UJAS). The main objective of the programme is to alleviate poverty by fostering sustainable development through economic growth supported by sound governance and macroeconomic policies, improved connectivity of national and regional transport infrastructure, as well as by sustained impetus on the improvement of agriculture and livelihoods. Support for conflict resolution in Northern Uganda and Karamoja, and strengthening of multi-party parliamentary democracy, will be part of the cooperation.

The 2006 national and local elections, which were conducted in a peaceful manner, underlined the importance of further consolidating the multiparty democracy and governance institutions. Basic human rights and fundamental freedoms are protected by the constitution and an independent judiciary, as well as by the work of various institutions and organizations active in the relevant field. The media is exercising its functions without undue restrictions. The reconciliation agenda for Northern Uganda received a welcome boost from the formal commencement of peace talks between the Government and the LRA. Prospects for peace and security in the wider region are also encouraging. The improving governance environment in Uganda is expected to be reflected in the recently launched African Peer Review Mechanism exercise, to which Uganda recently subscribed.

The economy is demonstrating resilience to external shocks and to the serious challenges posed by the energy crisis in Uganda. This satisfactory performance is attributed to the sound macroeconomic policies and to the performing private sector. Firm international prices for agricultural products, a developing customs union in the East African Community and improving tourist receipts are having positive results. The prospect of peace in the north is bringing increased economic activities with South Sudan. The recent confirmation of commercially exploitable oil deposits in Western Uganda could contribute positively to the growth of the economy in the medium-to-longer term. The implementation of the Poverty Eradication Action plan is contributing positively towards meeting the MDGs, although increased sustained efforts are needed to achieve them in the allotted time. Due to its land-locked nature, Uganda is investing substantially in its national road network, especially the main corridors that provide links with the neighbouring countries. Investment by the Government and Development Partners is needed in order to tackle the challenging task of the recovery of Northern Uganda.

The areas of intervention for EC cooperation for 2008-2013 reflect these major challenges, building on the EC’s comparative advantage both internationally and in Uganda, as well as ensuring coordination and harmonization with other development partners within the framework of UJAS and the Paris Declaration.

• Budget Support: 55% of EC assistance will be provided in the form of budget support, of which 40% is General Budget Support aimed at placing the emphasis on public finance management and economic growth as well as attainment of MDGs. The remaining 15 % will be provided as Sector Budget Support to the roads maintenance component of the first focal sector and also to the second focal sector, capitalizing on past experience with the Programme for the Modernisation of Agriculture.
• Focal sector 1: Support to Transport sector. The objective is to complete the rehabilitation and upgrading in Uganda of the Northern Corridor Route linking the port of Mombassa in Kenya and also serving Rwanda and East Congo, and to improve the maintenance of the national road network though rehabilitation and institution building (Road Authority, Road Fund).
• Focal sector 2: Rural Development. The specific objectives of this focal sector are to support agriculture development and productivity enhancement, including forestry development and livelihoods recovery in Northern Uganda. It will be complemented by a programme of conflict resolution and development assistance in Karamoja.
• Non-focal areas of support include assistance in the field of support to democratic governance and to Non State Actors, a TCF programme, and support to the NAO.