Welcome to Our Quarterly Briefer

The 16th Issue themed “Responsiveness of the Proposed National Budget Framework Paper FY2023/24 to the current social Economic Challenges,” is focusing on the National Budget for the FY2023/24 preparations following the release of the National Budget Framework paper and the budget call circulars. In this Issue, we present articles that are geared toward influencing budgetary allocations on selected programs in the National Development Plan III including Climate Change, Natural Resources, Environment and Water Management, Human Capital Development (health) and Agro-Industrialization.

The growth of Uganda’s economy has been remarkable. For the last 2 decades (1991-2011), Uganda achieved average annual GDP growth of 7.3% but growth in the last decade (2012-2022) has slowed to an average of about 4.6% and has not been inclusive. The Uganda Bureau of Statistics (UBOS) indicates that poverty rose from 19.7% in 2013/14 to 20.3% in 2019/20, demonstrating that poverty and income inequality rates are on an increasing trend in the economy. The recently launched Poverty Status Report (2021) also highlights that 1 in every 5 Ugandans is below the poverty line. It is also estimated that out of every 10 Ugandans, 6 are either poor or vulnerable to poverty indicating that the majority of the Ugandans have not benefitted from the country’s remarkable economic growth rates. Worse still the results of climate change shocks are already impacting all parts of the economy, particularly agriculture which is the main source of livelihood for Ugandans.

We hope that these articles will stimulate debate and inform policy discussions to influence increased budgetary allocations to the selected programs which we believe have a high multiplier effect to stimulate economic growth. In case you missed Issue no.15, please click here.

Here's a quick preview of what's inside:

Finance climate change for adaptation, mitigation, and resilience

By Elizabeth Nuwaha, Research Fellow, ACODE

Globally, climate change has become a development concern with negative impacts on growth which has increased the need to scale up adaptation and mitigation efforts. However, the previous budget allocations to Climate Change in Uganda for the last 3 Financial years continue to register a downward trend, for instance, the proposed National Budget Framework paper FY 2023/24 budget shows a 0.9% reduction in the budget allocation to the climate change and natural resources program from 2% in FY 2022/23 to 1.1% in FY 2023/24. Furthermore, since the start of the implementation of NDP III in 2020/21, the budget allocation to the Natural Resources, Environment, and Climate Change program has averaged at 1.2%, which is below the recommended 5% in NDP III.

Is Uganda allocating enough funds to meet the healthcare needs of its population?

By Richard Ayesigwa, Research Fellow, ACODE

Good health is not only an important resource at an individual’s level but also an important human right and one of the pillars of economic opportunity and development. Incidentally, good health for many people in Uganda remains elusive. While significant steps have been taken, to incentivize for instance increased life expectancy from 63.4 in 2020 to 64.4 in 2023 and nine in every ten persons (91%) accessing healthcare within a 5km radius; the health sector is still pledged with several challenges. These range from staffing gaps and staff absenteeism in health facilities to drug stock-outs, and scarcity of relevant medical equipment among others. In addition, progress in accessing healthcare services by vulnerable groups of people in rural communities remains unjustifiably uneven.

Financing the agriculture sector in Uganda: Trends and implications

By Philemon Okillong

For several years, agriculture has formed the backbone of several African economies. In Sub-Saharan Africa, agriculture contributes nearly 23 per cent of the gross domestic product (GDP), with smallholder farmers constituting more than 60 per cent of the population. Furthermore, it employs nearly 52.3 per cent of the workforce, mainly women and youth. However, Sub-Saharan Africa’s full agricultural potential remains unexploited, as food insecurity and undernourishment continue to pose a great development change across the region. In Uganda’s context, according to the Uganda Bureau of Statistics (UBOS), the agricultural sector continues to remain the most important sector employing over 68 per cent of the population and contributing to over 32 per cent of the GDP and Approximately 33 per cent of the country’s export earnings.

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